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Biodiesel - does it stack up?

Last post Wed, Sep 26 2007 14:40 by kansasfarmer. 17 replies.
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  • Tue, Nov 7 2006 15:40

    Biodiesel - does it stack up?

    Developing industrial uses for combinable crops, such as biofuels, tops the list of research topics growers would like to see the Home-Grown Cereals Authority (HGCA) fund between 2007-10.

     

    But can biodiesel produced from home-grown oilseed rape pay?

     

    Currently I can't seem to find anyone producing biodiesel from clean, farm-pressed rape oil for less than 90ppl, including duty. Does anyone reckon they can do it for less?

     

     

     

  • Tue, Nov 7 2006 18:10 In reply to

    Re: Biodiesel - does it stack up?

     We are certainly going to have a close look. Two reasons, firstly we are already paying about 70ppl for diesel (farming in Transylvania!) and secondly because it fits in with the concept of producing organic products (biodiesel has to be a natural step). With the latter it is a question of which oil crop to go for. Sunflower might be the most interesting option. Either way there will be a benfit from the oilmeal.

    One point that concerns me relates to an earlier comment about Valtra not clearing biodiesel for their common-rail engines. Is it possible that we are now being forced into using engines built for Tier 3 emissions standards that are increasingly engineered for reducing emisions from diesel whereby this same degree of technology (and cost) may not be required and/or be detrimental to getting reliable performance with biodiesel. We are acutely aware of the reliability issue with tractors and are actively trying to avoid the latest technology. When it goes wrong and you are 200 miles plus from your nearest machinery support services life gets expensive. Is it, therefore possible, that biodiesel may allow us to return to something simpler? If so, I suspect that we will not be alone in hoping that there is a tractor manufacturer who realises that there is a market in Europe for low-tech, high-quality tractors. 

  • Wed, Nov 8 2006 19:43 In reply to

    Re: Biodiesel - does it stack up?

    www.valtra.com

    Please go to the Valtra website, link above. Go to the news section and see press release dated 6.11.06 which confirms 20% Biodiesel in Valtra Common Rail Engines.

  • Thu, Nov 9 2006 11:03 In reply to

    • plonk
    • Not Ranked
    • Joined on Fri, Oct 27 2006

    Re: Biodiesel - does it stack up?

    In reply to Stuart Meikle’s comments there are a number of factors to consider. Firstly the introduction of engines that produce ever lower emissions is the result of international pressures and resulting regulations – not just here in the EU but also in the USA, particularly California. Reducing emissions naturally calls for a greater level of technology. Valtra, like other engine manufacturers, is introducing Tier 3 engines to meet these stringent regulations.

     

    The argument, that if one is fuelling an engine with 100% bio diesel, it is therefore carbon neutral is an interesting one. Perhaps he should put this argument to the ecologists and EU gurus who make the rules to which we have to adhere.

     

    It will be the law makers that will permit, (or otherwise) the continued production of low-tech engines for use in the EU and elsewhere. It will not be a manufacturers decision.

     

    Roger Thomas

     

  • Thu, Nov 9 2006 11:38 In reply to

    • moore2
    • Not Ranked
    • Joined on Sun, May 22 2005

    Re: Biodiesel - does it stack up?

    Going back to the original posting, I think you’re probably right, once duty is included, the cost of production is somewhere in the region of 90 ppl.

    If OSR were £ 130/tonne not £ 170 + oil bonus, on farm production makes sense, but with the current OSR price and the current pump price for diesel, it is very difficult to justify.

    Also whether you’re selling to a haulier or to the general public, make sure you’re sat down when you ask an insurance company for a quote on liability cover.

  • Thu, Nov 9 2006 16:31 In reply to

    Re: Biodiesel - does it stack up?

    Another big point to consider is the cost of testing samples - especially if you're looking to sell to jo public. From what I can make out, it's pretty damn expensive to make sure your biodiesel meets the standards (EN14214) and farms don't have the luxury of an on-site lab that the big-scale biodiesel firms do.

    Does this 90ppl cover testing samples?

    Paul (FW arable)

  • Fri, Nov 10 2006 10:07 In reply to

    Re: Biodiesel - does it stack up?

    In my humble opinion, we are barking up the wrong tree, well more a case of moo-ing up the wrong tree, with biodiesel, I have to agree that it is a matural step towards climate change action, and not to detract from the original posting, it doesn't stack up for two reasons.

    Firstly, to make quality EN14214 the batch size must be kept small, unless you have the manufacturing capacity of these huge plants we see in Europe, which I think we'll all agree takes considerable investment, not really practical at a farm level.

    Secondly, biodiesel and bio fuels will only become truly viable when the oil companies, such as Shell, BP etc... can control the market. I'm a sceptic, sorry, but this technology is not new, these guys have a history of buying up patents and the like, and hiding them in a cupboard for 20years so as to protect their own interests, OIL.

    What do ppl know about generation 2 biofuels, companies adding such things as algie to fuels to increase the calorific value!?

    Anyway, biodiesel at current prices doesn't stack up, unless you want to do what I reckon is best way, don't tell the Government your making the stuff and carry on regardless...!?

    Dolphin

  • Fri, Nov 10 2006 10:48 In reply to

    Re: Biodiesel - does it stack up?

    At the recent Biodiesel-Expo at least two firms were offering fuel analysis services, both of which can be used to prove biodiesel meets EN 14214 fuel standards, detailing ester and sulphur contents for Revenue and Customs' requirements.

    Intertek analysis will itentify specific problems in the biodiesel conversion process and in its most basic form can be used to quantify sulphur and ester for about £150. The company suggests testing is done evry quarter for a typical medium-scale producer. Contact adrian.mason@intertek.com

    ALcontrol Labs offers an 'a la carte' service where customers can choose specific parameters for testing including water in fuel, contamination, etc... The firm says that by testing both the raw material (eg vegetable oil) and the final product (eg biodiesel or rape methyl ester - RME), it can provide a full fault-finding service for about £750. A basic ester and sulphur test will cost about £35. Contact wearcheck@alcontrol.co.uk   

     

      

  • Tue, Nov 14 2006 11:01 In reply to

    Re: Biodiesel - does it stack up?

    It actually annoys me a bit - this whole biofuel debate. In particular, the biodisel and bioethanol issue. This seems to me one area that could have some serious farmer co-operation, and give us a chance to make a value added product quite easily.

    Wouldnt it be better for those interested in making biodiesel on-farm to join up and build something of a half-decent scale? I am reminded of a group fo 7 American farmers who wanted to make some biodiesel, so they went to the bank and built a plant processing that used 800t a week. Dont quote me on the numbers, but they were certainly above the paltry "old IBC and hosepipe" scale.

    Stuff doing it on-farm. Get together and get big. This will be much less of a UK government issue, and more of a pan-European political issue. I would suggest any growers up in the north of England and are thinking of doing it on-farm should get together and put all their cash into a well known local biodiesel company listed on the stock exchange.

    Bigger scale - less risk - easy to liquidate the cash later - no red tape.

  • Wed, Nov 22 2006 9:33 In reply to

    Re: Biodiesel - does it stack up?

    tim

    your absolutely right. its pointless for every man and his dog trying to go it alone.  The best way to do it is to get all the growers of OSR into a consortium and approach a company who already makes the stuff.  granted you might not initially makes as much but you can forget about having to worry with complying the thousands of rules for making Bio diesel.  there is no risk of selling ' bad diesel' or any health and safety aspects witht the running of a plant.

  • Mon, Dec 11 2006 0:02 In reply to

    Re: Biodiesel - does it stack up?

    Why bother making biodiesel when you can use straight Oilseed Rape  Oil??? Lister Petter engines can run on straight Rape Oil, and many other engines can be converted simply by changing the injectors. OK perhaps Common Rail injection systems are out of the question since they are far too delicate. But with rape oil there is no extra expense and no need to mess with additives, methanol, mixing tanks, no wasted glycerine etc.

    This is the obvious solution to cost effective farm made biofuel, we just have to ask the machinery dealers - Will it burn rape oil? can it be modified? when we are being given the sales pitch, it won`t be long before the manufacturers take notice!

  • Tue, Mar 20 2007 9:36 In reply to

    Re: Biodiesel - does it stack up?

    It may be of interest, but our organisation is currently working with farmers, we are working with groups who will collectively be producing rape seed. As a group they are purchasing pressing equipment and using the 'group' pressing facility to produce rape oil. We are also looking at ways to remove the waste products ie rape seed cake, and use it as a seperate fuel source, thus making production costs lower. The biodiesel industry is crying out for cost effective oil supply, in order for it to grow.

    With regard to supply of biodiesel, we access many biodiesel producers, from 'the big boys' to the smaller producers. A small few are using rape, most are using waste cooking/vegetable oil (mainly due to the cost of rape). We are currently aware of over 700 producers in the UK.

    We are able to supply biodiesel in it's 100% (pure form) or custom blended with derv, to any blend percentage required. Thus enabling users to stay within the warranty limits of their vehicles.

    Dependent on quantities required and location of user, prices for biodiesel currently start from around 71.5 pence per litre (including duty excl VAT). 

    Contact number is 0845 1307924

    Web: www.bioenerg.co.uk

  • Tue, Mar 20 2007 10:30 In reply to

    Re: Biodiesel - does it stack up?

    I'm not sure about the energy balance of producing biodiesel from oily seeds, but fertiliser consumes a lot of energy and produces quite a bit of carbon dioxide in its production. So organic rape or other oily seed would make sense in terms of emissions. But the idea of pouring something we could eat (and would be prepared to pay a premium for as consumers) into a fuel tank seems unlikely to appeal to farmers... I like the idea of cooperatives to gain economies of scale, and there are plenty of ways of dealing with the seed cake. There's a well estabilshed chemical process to take many kinds of organic matter and turn it into gas and then into fuel, for example...
     
  • Sun, Apr 1 2007 9:34 In reply to

    • cadfael
    • Not Ranked
    • Joined on Sun, Apr 1 2007

    Re: Biodiesel - does it stack up?

    A friend locally runs his 83 TDI 200 Landy on a 80/20 mix of veg oil/kero with an additive called diesel secret energy from the states.  Once warmed up it goes like the proverbial bat out of hell!! 50 to 60 in top in 3 seconds!!
    Tickover with absolutely no smoke, just a pleasant barbie smell...cant be bad!
    Carbon neutral, but what does the idiot at no 11 do but pile on a money grubbing tax that likely costs more to administer than it collects, so its very much a case of.....!!
    It looks very much as if the lower tech engines will go on for ever, witness the Gardner engines in the Nile paddle steamers, still running sweetly since before WW 11!
    Regards,
    Mike.
  • Sat, May 5 2007 21:08 In reply to

    Re: Biodiesel - does it stack up?

    No temperate crop can compete with oil palm - 4-5 tonnes of oil net - no cultivations for 22 years - poverty alleviation in thrid worl countries - tree cover on logged out forest  - JS
  • Fri, May 11 2007 16:48 In reply to

    Re: Biodiesel - does it stack up?

    The only problem with using palm oil in the UK is the fact that it has a cloud point of around 10 degrees above freezing. Ideal for warm countries but not so good when it begins to thicken in your engine on a cold day.
  • Fri, Jun 15 2007 13:24 In reply to

    Re: Biodiesel - does it stack up?

    I have some experience of bidiesel manufacture and selling through investments made [and not made] by my firm.  Commenting on the various posts, the basics of biodiesel as seen by me:

    • Manufacturing variable cost is 10p per litre biodiesel + oil price + duty + VAT.  Using waste veg oil at 20ppl this gives an ex works price of 59p + VAT = 67p.  Typically 1 litre WVO makes .92 litres Biodiesel, and about 0.4 litres glycerol.
    • Yes it is perfectly possible to make EN conforminb Biodiesel from OSR oil - in fact the standard was written for it.
    • Product liability insurance not a problem for my clients.
    • Distriibution costs and methods are the key.  If you can get the size right it is cheaper and greener to make on farm and sell locally.
    • Palm Oil cloud point is an irrelevance.  Most Biodiesel has a waxing problem at about 0C.  solution is to use B80 [i.e.20% mineral diesel].  CPO available CIF rotterdam at approx £200 per tonne.  Robust and reliable supply.  This is why most of the big plants are close to ports.
    • If you're serious about considering production then visit www.future-fuels.co.uk
    • Ecological / Ethical Points
    • It is a fact that a field growing OSR is not growing wheat, rice etc and therefore at some time [arguably in the future], someone, somewhere won't get fed.  Balancing the argument of reducing global warming which might be destraoying the planet [but then again, might not], by starving the poor would test Solomon.  DEFRA have no chance!
    • Palm Oil production is a bit dodgy - many of the producers are ethical, many are not.  Palm oil plantations replace rainforest - lungs of the world and home of the orang utang.
    • CO2 footprints simply not yet properly calculated.  on CPO you need to include the CO2 released when the old plantation / jungle cut down.
    • Using WASTE Veg oil seems to make more economic sense
    • it has already been used for cooking
    • it was produced for that, so any fuel use is CO2 free
    • it was heading off to make soap - which us where the glycerol goes anyway.
    • increasingly available, although there is wide price / quality

    I can't help thinking that ultimately biofuel is a non-answer to a non-problem of political origin.  You want abundant energy with no CO2, go nuclear.  There remains significant doubt about the cause of global warming - the fact that Al Gore [who once claimed to have invented the internet] is making a career out of it is not a compelling argument.

    In the interim, there is money to be made provided:

    1. The current level of road tax discount for biofuel remains or is increased
    2. Fossil derv remains >85p per litre on the road
    3. You can secure reliable WVO supply [or press your own for <20p per litre
    4. You can finde distribution outlets.
    5. You have a reliable processor, with good manufacturer support.

    My client, Future Fuels can hep with 3,4 and 5.

     

  • Wed, Sep 26 2007 14:40 In reply to

    Re: Biodiesel - does it stack up?

    We are hearing now from certain sources that over the long haul ethanol may actually be more harmful to the environment than helpful.  The amount of water used in production is one factor, emissions are another which confuses me since I thought that was one reason we were switching.  Sadly for me, since I don't like nukes, I have to agree at this point in the game nuclear seems to make the most sense. One also has to wonder in the case of biodiesel from soybeans, will the much higher soybean prices encourage more Brazilian rainforest destruction for the production of soybeans??

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