Introduction to Ethanol and Biodiesel Tony Radich Energy Information Administration Office of Integrated Analysis and Forecasting anthony.radicheia.doe.gov February 28, 2006
What is Ethanol Another term for ethyl alcohol Hydrous ethanol contains at least 5 volume percent water - used for fuel in Brazil Anhydrous ethanol contains less than 1 percent water - used for fuel in the U.S. Fuel ethanol must be…
Kinds of Ethanol Grain ethanol, from corn, sorghum, barley, wheat Sugar ethanol, from cane sugar or beets Cellulose ethanol, from plant fiber Synthetic ethanol, from ethylene in a petroleum refinery or petrochemical plant All the same…
The Chemistry of Ethanol Production Amylase Enzyme, Heat 6-carbon Yeast Corn Ethanol sugars Cellulase Genetically Enzyme or Modified 5-carbon Strong Acid, Yeast or sugars Heat Bacteria Cellulose and Ethanol 6-carbon sugars
Ethanol Plant Types and Coproducts Corn wet mill corn oil corn gluten feed corn gluten meal Corn dry mill distillers grains with solubles Cellulose ethanol electricity sold to the grid New ethanol plants are assumed to be dry mills…
U.S. Ethanol Production Facilities
Ethanol Characteristics Advantages Gasoline substitute Improves octane Dilutes sulfur and aromatic compounds Reduces carbon dioxide emissions Every car can use 10% ethanol Some newer vehicles can burn E85, with up to 85% ethanol…
U.S. Gasoline Formulations Conventional Reid Vapor Pressure limit of 9 psi in summer Blending 10% ethanol increases Reid Vapor Pressure to 10 psi Oxygenated Conventional gasoline with at least 7.7% ethanol for reduction in winter…
Ethanol Regulations Federal excise tax credit of 51 cents per gallon Tariff of 54 cents per gallon on imported fuel ethanol 1-pound RVP waiver for conventional gasoline Corporate Average Fuel Economy benefits for E85-compatible vehicles…
Ethanol Cost by Technology, 2012 (2004 dollars) Corn Dry Mill Cellulose Raw Material Corn Crop Residue, Switchgrass Coproduct Distillers Dried Grains with Electricity to Grid Solubles Plant Size 50 million gallons per year 50 million…
West North Central Division Ethanol Costs Including Tax Credit 2.00 Cellulose, maximum of 0.17 BGal/yr 1.80 (2004 dollars per gallon) 1.60 1.40 Conventional Gasoline 1.20 1.00 Dry Mill, maximum of 9.1 BGal/yr 0.80…
U.S. Petroleum Product Supply and Demand In Reference Case 450 Consumption (billion gallons per year) 400 350 300 250 200 Domestic Supply 150 100 50 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025…
U.S. Ethanol Use By Crude Oil Price Case (billion gallons per year) 20 (billion gallons per year) High Price 15 Reference 10 Low Price 5 0 1994 1999 2004 2009 2014 2019 2024 2029
Biodiesel Methyl ester of soybean oil or yellow grease Produced by reaction of vegetable oil with methyl alcohol in the presence of sodium hydroxide Glycerine is the byproduct Properties vary by raw material Permissible level of…
Biodiesel Characteristics Advantages Diesel substitute Less toxic than petroleum diesel Reduces particle emissions Improves lubricity Improves cetane Cleans fuel system Exhaust smells like French fries Disadvantages Poorer fuel…
Biodiesel Regulations Federal excise tax credits 1 per gallon of biodiesel from soybean oil 50 cents per gallon of biodiesel from yellow grease USDA Commodity Credit Corporation grants for expansion of production Minnesota requires…
Biodiesel Cost by Raw Material, 2012 (2004 dollars) Soybean Oil Yellow Grease Coproduct Glycerine Glycerine Capital Cost 1.30 per annual gallon 1.30 per annual gallon capacity capacity Raw Material Cost 2.54 1.24 Non-energy…
Biodiesel Use By Crude Oil Price Case (billion gallons per year) 0.5 0.45 High Price (billion gallons per year) 0.4 0.35 Reference 0.3 0.25 Low Price 0.2 0.15 0.1 0.05 0 2007 2012 2017 2022 2027
Economic Potentials for Biofuels Production in AEO2006 18 (billion gallons per year) 16 14 12 10 8 6 4 2 0 Yellow Grease Soybean Corn Ethanol Cellulose Biodiesel Biodiesel Ethanol