biofuels - a comparative study of brazil and the united states

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Biofuels: A Comparative Study of Brazil and the United States August 2015 Renan Neves Micha Intern, Global Energy Network Institute (GENI) [email protected] Under the supervision of and edited by Peter Meisen President, Global Energy Network Institute (GENI) www.geni.org (619) 5950139

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Page 1: BioFuels - A Comparative Study of Brazil and the United States

 

 

Biofuels:  A  Comparative  Study  of  Brazil  and  the  United  States  

  August  2015  

 Renan  Neves  Micha  

Intern,  Global  Energy  Network  Institute  (GENI)  

[email protected]  

 

Under  the  supervision  of  and  edited  by  

Peter  Meisen  

President,  Global  Energy  Network  Institute  (GENI)  

www.geni.org  (619)  595-­‐0139

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Abstract  

According to Intergovernmental Panel on Climate Change (IPCC) scientists,

anthropogenic Greenhouse Gas (GHG) emissions clearly have been altering the

mechanics of the climate system in the last centuries. Due primarily to CO2 levels

never seen before, this new dynamic is changing some atmospheric and ocean

variables, making them warmer and the latter more acidic, melting glaciers and

raising sea levels. The use of fossil fuels, cement production and flaring are big

concerns worldwide and represent more than 90% of current CO2 emissions. Another

important concern for countries living in a petroleum-based life is the dependence, in

financial or supply security, on foreign oil. Biofuels have been seen as an alternative

for dealing with global warming and the dependence on oil through reducing the use

of fossil fuels. The U.S. has been the major biofuel producer since 2007 when its

numbers exceeded the Brazilian historic volumes. On the other side, Brazil used to

lead the industry thanks to the glorious stages of the Pro-Alcohol program (1973-1986

and early 2003). Its creation took place as a result of the economic impacts of the first

Oil crisis when the price of oil quadrupled. The American boost in production started

in 2005 when the first Renewable Fuel Standard edition begun to drive the country to

lead the world. Simply put, this program created annually increasing volume targets

to the nation transportation fuel. It was released as part of the Energy Policy Act of

2005 and expanded in the Energy Independence and Security Act of 2007. Biofuels,

so far, are primarily produced from crop-based sources as corn in the U.S. and

sugarcane in Brazil. Despite of their quality, sugarcane has greater energy balance

and saves more GHG than corn comparing their energy balance and lifecycle analysis,

if land change is disregarded. Impacts on food prices as well as land, water and other

resources use raises concerns on resources security and have shifted the U.S. and

Brazilian attention towards next generation biofuels. This work goes deep on the

comparison between the main countries so far in the biofuels industry and shows the

great potential of algae and cellulose as the next generation biofuels.

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Table of Contents

ABSTRACT .................................................................................................................. 1

1.INTRODUCTION ...................................................................................................... 5

1.1. CURRENT CO2 CONCENTRATION AND CLIMATE CHANGE .............................. 5

1.2. ENERGY SECURITY .................................................................................................. 8

1.3. SUMMARY OF CHAPTER 1 ....................................................................................... 10

2. THE BRIEF HISTORY OF BIOFUELS IN THE TWO COUNTRIES ................. 11

3.BOFUELS: BIOALCOHOL AND BIODIESEL ..................................................... 11

3.1. BIOALCOHOL ......................................................................................................... 14  

3.2. BIODIESEL ............................................................................................................. 14

4 – CONVENTIONAL PROCEDURES ..................................................................... 17

4.1. ETHANOL FROM SUGARCANE AND CORN ................................................................ 17

4.2. BIODIESEL FROM ANIMAL FAT OR SOYBEAN .......................................................... 18

4.2.1. PRETREATMENT .................................................................................................. 20

4.2.2. TRANSESTERIFICATION ....................................................................................... 20

5. BIOFUELS PROGRAMS ....................................................................................... 20

5.1. PRO-ALCOHOL ....................................................................................................... 21

5.2. WHY THE PRODUCTION STOPPED AFTER THE WORLD ECONOMIC CRISIS? ............... 22

5.3. THE NATIONAL PROGRAM FOR BIODIESEL PRODUCTION ....................................... 23

5.4. RENEWABLE FUEL STANDARD ............................................................................... 23

5.4.1. RFS2: IMPACTS .................................................................................................. 20

5.4.2. RENEWABLE IDENTIFICATION NUMBER ............................................................... 20

6. CURRENT BIOFUEL ISSUES .............................................................................. 28

7. ETHANOL PRODUCTION FROM ALTERNATIVE SOURCES ....................... 30

7.1. ETHANOL FROM SECOND GENERATION SOURCES ................................................... 30

7.2. CELLULOSIC ETHANOL ........................................................................................... 31

7.3. ALGAE FOR BIOFUEL .............................................................................................. 32

8. KEYPOINTS ........................................................................................................... 34

 

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List of Figures  

Figure 1. Population growth, mean temperature increase and CO2 emissions.  ...............................  5  

Figure 2. Land-Ocean Temperature variation.  ...........................................................................................  6  

Figure 3. Atmospheric CO2 dissolution and Seawater pH decrease.  ..................................................  7  

Figure 4.Increase in CO2 emissions.  ..............................................................................................................  7  

Figure 6. Historic oil prices and its political conflicts.  ............................................................................  9  

Figure 7. Predictions about the peak oil in some countries and U.S. states.  .................................  10  

Figure 8. Production of Biofuels (only ethanol) over the years  .........................................................  12  

Figure 9. Major feedstocks used for biodiesel production (2012)  ....................................................  15  

Figure 10. Biodiesel sources for biodiesel production in Brazil  .......................................................  15  

Figure 11. First generation operational procedure  .................................................................................  17  

Figure 12. Corn process to produce fuel alcohol  ....................................................................................  18  

Figure 13. Biodiesel production from oils and fats.  ..............................................................................  19  

Figure 14. Possible routes for glycerin as raw material  .......................................................................  19  

Figure 15. Transesterification process  .......................................................................................................  20  

Figure 16. Comparison between sugar prices and ethanol production  ............................................  22  

Figure 17. Biofuels production and targets after 2013  .........................................................................  24  

Figure 18. Use of corn for fuel production related to the price of corn  ..........................................  25  

Figure 19. Charge about the issues between corn and food prices  ...................................................  26  

Figure 20. Ethanol production and gasoline imports for the U.S  ......................................................  26  

Figure 21. Market for the RIN’s prices  ......................................................................................................  27  

Figure 22. Blend Wall for the alcohol blend  ............................................................................................  28  

Figure 23. Emission reduction for different sources  .............................................................................  29  

Figure 24. Lifecycle analysis considering land-use change  ................................................................  29  

Figure 26. GHG emissions for transportation fuels  ...............................................................................  31  

Figure 27. Comparison in emissions between different alcohol origins  .........................................  32  

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List of Tables

Table 1. Properties of gasoline and bioethanol  .......................................................................................  14  

Table 2. Comparison between biodiesel sources  ....................................................................................  16  

Table 3. Comparison between different sources of biodiesel production  ......................................  33  

 

 

 

 

 

 

 

 

 

 

 

 

 

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1.Introduction  

1.1. Current CO2 concentration and Climate Change  

Increasing CO2 emissions have been considered a major threat to the environment so

far. Coming from higher urbanization rates and population growth, it is pressuring the

natural resources and requiring an accelerated industrial activity. The modern world

society is built over the necessity of burning fossil fuels, which is the main CO2

emitter for this generation — 91% of the CO2 emissions is due to fossil fuel use,

flaring and cement production. The figure 1 shows how the curves of population

growth, CO2 emissions and average global temperatures fit well1.

FIGURE 1. POPULATION GROWTH, MEAN TEMPERATURE INCREASE AND CO2 EMISSIONS2

On the flip side, the atmosphere is the main receptor —50% of the total

emissions— of GHG, while the oceans absorb roughly a quarter of it. Lands, trees and

the soil, keep the remaining part 1.

The greenhouse effect is intensified as the carbon dioxide concentration in the

atmosphere increase. The mean global temperature and the emissions are compared in

figure 1. As a consequence of high CO2 levels and ocean temperatures, the dissolution

of this gas increases and risks are created to the coral reefs. They cannot survive to the

combination of high acidity and warmer temperatures. The marine life could be                                                                                                                          1  CO2now.org.  2015.  <http://co2now.org/> - accessed on august 27th, 2015.    

2  World Bank, Earth Policy Institute and Goddard Institute for Space Studies- National Aeronautics and Space Administration  

1860.00   1880.00   1900.00   1920.00   1940.00   1960.00   1980.00   2000.00   2020.00   2040.00  

0.00  

5000.00  

10000.00  

15000.00  

13.00  

13.50  

14.00  

14.50  

15.00  

1860   1880   1900   1920   1940   1960   1980   2000   2020   2040  

Annual relation between carbon emissions (million tons), mean temperature (C) and population growth

(million people)

Average  Temperature   Carbon  emissions   Population  growth  

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irreversibly changed. Figure 2 illustrates the increasing heat in the oceans and land. It

is worthy to mention that the oceans regulate the climate and the weather and it can

provoke unpredicted events3.

FIGURE 2. LAND-OCEAN TEMPERATURE VARIATION4

The observed change in acidity can be analyzed in the figure 3. According to

the National Oceanic and Atmospheric Administration, the pH has already fell 0.1

unit and it is expected to decrease 0.3-0.4 units at the end of the century5.

                                                                                                                         3  Harrabin, R., How climate change will acidify the oceans, BBCnews. Acessed on august 2015 <http://www.bbc.com/news/magazine-26746039>.  

4  J. Hansen et al., Global Surface Temperature Change, Reviews of Geophysics, v 48, issue 4, 2010.  

5  Grossman, E., Northwest Oyster Die-offs Show Ocean Acidification Has Arrived. Environment 360, 2011 report. <http://e360.yale.edu/feature/northwest_oyster_die-offs_show_ocean_acidification_has_arrived/2466/>  

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FIGURE 3. ATMOSPHERIC CO2 DISSOLUTION AND SEAWATER PH DECREASE5

401.30 ppm is the most updated CO2 level so far (on 10:54 pm. August 26,

2015) measured by the Mauna Loa Observatory by July 2015. This concentration has

never been seen in the human history and can be associated to the human activity. The

number lies 51.30 ppm above the upper safety limit (350 ppm) advocated by the

founder of 350.org, McKebinn. His main idea is to avoid irreversible changes on the

climate and make the current unsafe concentration go back to this level in order to

stabilize climate events for the next generations. From the data: the world has

exceeded this number in 1988 1,6.

FIGURE 4.INCREASE IN CO2 EMISSIONS

SOURCE: MAUNA LOA OBSERVATORY – HAWAII

More molecules of CO2 can modify the water cycle. Higher temperatures

mean increasing evaporation rates in many places. This creates more air moisture and                                                                                                                          6  http://350.org/  

300.00  

320.00  

340.00  

360.00  

380.00  

400.00  

420.00  

1950   1960   1970   1980   1990   2000   2010   2020  

CO2 emissions (ppm)

CO2  emissions  

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soil evaporation, opposite sides of the same coin that can cause a higher frequency of

floods in one end and severe droughts in the other end7,8. Also, the sea level is rising

influenced by glaciers melting on higher rates and it is threating coastal cities7.

In Brazil, land use change (deforestation) and energy use are the main CO2

sources. The first is the major source. The good news is it was reduced 47.72% from

2005 to 2010 due to amazon forests conservation. It is 11.62% higher than the

Brazilian target defined by the Millennium Development Goals by 2020. The energy

sector, on the other hand, has increased its emissions by 32% according to the

Brazilian Institute of Geography and Statistics9. According to Brian Clark Howard,

from National Geographic website at his article Brazil Leads World in Reducing

Carbon Emissions by Slashing Deforestation the reduction can be compared to three

times the effect of removing all the U.S. cars on the roads. Recently, the current

president of the Brazilian Republic, Dilma Roussef, has committed to enhance the

progress in forest conservation in a bilateral commit with the American president

Barack Obama10.

1.2. Energy Security

Uninterrupted availability of energy sources at an affordable price (IEA)11. The

creation of a domestic energy market goes toward the direction stated in the definition

of Energy Security. It also helps to stop the fear of depleting oil reserves. Biofuels are

renewable sources and a strong tool for achieving the energy security as a new energy

market. Two points to keep in mind about Energy Security are the oil prices and Peak

Oil.

                                                                                                                         7  Hirabayashi, Y. et al., Global flood risk under climate change, Nature climate change. 3, 816-821, 2013.  

8  Climate change indicators, Environmental Protection Agency. Full report.  Accessed  on  august  2015.  

9  Sustainable development indicators 2010. Brazilian Institute of Geography and Statistics (IBGE)  

10  Goldenberg, S., Roberts, D., and Agencies., Brazil announces massive reforestation and renewable energy plan with US. The Guardian. June 2015. <http://www.theguardian.com/world/2015/jun/30/brazil-us-reforestation-forests-renewable-energy> Accessed on august 27th, 2015.  

11  International  Energy  Agency.  Topic:  Enegry  Security.    <http://www.iea.org/topics/energysecurity/> accessed on august 27th, 2015.  

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The historical prices created by OPEC are overly risky and speak by itself

against one’s energy security if you are not an OPEC’s country. As one can see,

several political events have influenced the oil prices over the last decades. The first

oil crisis, the Oil Embargo in 1973, has quadrupled the oil prices from around U$3 to

U$12 dollars. The second crisis occurred with the Iranian revolution and has raised

the price to U$39.50 in 12 months12. Near the world economic crisis, the prices have

hiked up and so far it is stabilized in roughly U$ 42.65 — WTI crude oil – Nymex

(figure 4)13. The best biofuels phases coincide with the high oil prices and the periods

of high concern with climate change, after Kyoto protocol.

FIGURE 5. HISTORIC OIL PRICES AND ITS POLITICAL CONFLICTS

SOURCE: THE NEW YORK TIMES

Peak Oil is understood as the idea that the oil production reaches a maximum

point until it starts to decrease to zero. Some specialists say the peak oil has already

happened in between 2005-2006 and other say it is going to happen in the first years

of the 21st century14. The 2004 U.S. government predictions for the peak oil in some

countries and some U.S. states can be observed in the figure 715.

                                                                                                                         12  US department of state – OFFICE of the HISTORIAN, MILESTONES: 1969-1976. <https://history.state.gov/milestones/1969-1976/oil-embargo> accessed on august 27th, 2015.  

13  Bloomberg. Markets: Energy & Oil: Crude Oil & Natural Gas. Accessed at 4:21pm on august 27th, 2015.  

14  Bardi, U., Peak oil: The four stages of a new idea. 5th workshop on Advances, Innovation and Visions in Energy and Energy-related Environmental and Socio-Economic Issues. V. 34, issue 3, 323-326, 2009.  

15  Industry Database, 2003 (IHS), OGJ, 9 feb 2004 (Jan-Nov, 2003).  

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FIGURE 6. PREDICTIONS ABOUT THE PEAK OIL IN SOME COUNTRIES AND U.S. STATES

SOURCE: INDUSTRY DATABASE15  

1.3. Summary of chapter 1

The intensive use of fossil fuels is creating a huge problem to the environment

through the increasing concentration of CO2 in the air and oceans. Oil-based

economies have been suffering the consequences of OPEC’s regulation on oil prices.

Also, the threat of peak oil is a fear that serves as another driving force to the use of

alternative energy.

Biofuels are economic alternatives to overcome the abusive prices set by

OPEC and the problem of depleting the reserves of oil. The market has been created

in the two countries as a consequence of effective and strong policies. The driving

force for Brazil was the economy while for the U.S., the concern of climate change

and energy security.

 

 

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2. The brief history of biofuels in the two countries

The Brazilian economy was living the so-called “Economic Miracle” when it was

strongly impacted by the Oil Embargo. Highly dependent on oil importations, it had

to think in some alternative to overcome the new “salty” prices. So, in 1975 the

government launched the Alcohol National Program, the so-called Pro-Alcohol, at its

commercial stage, which aimed at changing partial or totally the amount of gasoline

used in the cars. Later, in the 80s, alcohol-driven cars were manufactured. Blends

between alcohol and gasoline were incentivized during the whole program. After the

two first oil crisis, the program succeeded and the production increased from 1975

and 1986. The alcohol penetration in the transportation sector was so high that in

1987 the demands for gasoline and alcohol were the same. With the stabilization of

the oil prices, after 1986, the production slowed down and coupled with lower

incentives for the use of alcohol —the blend mix for alcohol was one of the few

kept—, the production slowed down16.

During the 2000s the Brazilian production growth was retaken in 2003 on Luis

Inácio Lula da Silva’s mandate and the National Program for Biodiesel Production

was created. In the United States, the Energy Policy Act of 2005 created the RFS,

which required renewable volumes to be producer for the transportation sector, and

the American production has grown in a rate never seen before. In the Energy

Independence and Security Act (EISA) of 2007, the U.S. government has updated the

first RFS edition (RFS1) into the RFS2 with more ambitious targets and the main

focus being on cellulosic biofuels. Increasing volume target are set until the capacity

gets 16 billion gallon yearly by 202217.

So far, the U.S. is the world leader in Bioethanol and Biodiesel production.

The second producer is Brazil. Germany, France and Italy are important biodiesel

                                                                                                                         16  Michellon, E., Breve descricao do pro-alcool e perspectivas futuras para o etanol produzido no Brasil. “a brief description of pro-alcohol and future perspectives for the brazilian produced ethanol”, XLVI congress of Rural Sociology, Administration and Economy Brazilian Society. 2008. < http://www.sober.org.br/palestra/9/574.pdf>  

17 Udal, T., Leveling the Clean Energy Playing Field, 2011, Tom Udal page <http://www.tomudall.senate.gov/?p=blog&id=924>.  

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markets as well as Argentina in South America, according to the Energy International

Agency database18.

In 2004, the Brazilian government created the National Plan of Biodiesel

production and came from no production to the second position in the world Biodiesel

production rank19.

Finally, after the economic crisis, the high prices of sugar in the international

market, bad weather for the crops, restricting policies for the fuels prices and lack of

investments, the Brazilian production stopped to grow again.

FIGURE 7. PRODUCTION OF BIOFUELS (ONLY ETHANOL) OVER THE YEARS

SOURCE: WANG ET AL, 2012

Figure 8 shows a comparison between historical alcohol supplies in the two countries.

                                                                                                                         18  <http://www.eia.gov/totalenergy/data/annual/index.cfm> 19 Statista. The world's biggest biodiesel producers in 2014, by country (in billion liters). 2014. <http://www.statista.com/statistics/271472/biodiesel-production-in-selected-countries/>  

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3. Biofuels: Bioalcohol and Biodiesel

3.1. Bioalcohol

An alcohol with 2 carbons and a group (-OH) attached to it and a hundred percent

Mixable with water due to the presence of the hydroxyl group. In Brazil, flexfuel cars

are designed to receive any proportion between hydrated alcohol and gasoline. The

regular gasoline contain up to 27.5% of anhydrous alcohol. In the U.S., the gasoline

contains 10% of anhydrous ethanol. Companies like Toyota do not recommend the

use of blends upper than E10 in its vehicles20.

Ethanol can be made from sugar (sugarcane juice), cellulose (plant walls),

starch (corn) and wheat. Comparing to gasoline, it has lower energy per liter (~65%)

and higher octane number RON and MON (IEA). Its cleaner, enhance engine’s

performance and reduce emissions of HC and CO21. EIA statistics says 12.73 pounds

of CO2 are produced when each gallons of ethanol is burnt. 18.64 pounds are released

when E10 is burnt and 19.64 pounds when for gallon of gasoline22.

Flex fuel cars in Brazil are designed to know the exact proportion of alcohol

and gasoline in the engine and can run without any change in the engine. In gasoline

cars manufactured before 1990, the carburetor should be slightly modified to avoid

the separation of phases that occur when alcohol absorb water. For blends up to 85%,

U.S. flex fuel vehicles are able to run and for more than 85% only the Brazilian flex

                                                                                                                         20 smarterfuelfuture.org., could your next fill-up damage your engine, 2015, <http://smarterfuelfuture.org/blog/details/could-your-next-fill-up-damage-your-engine>.

21 Koc, Mustafa et al, The effects of ethanol–unleaded gasoline blends on engine performance and exhaust emissions in a spark-ignition engine. v. 34, issue 10, 2009, 2101–2106.  

22  EIA website. Frequented asked questions: How much carbon dioxide is produced by burning gasoline and diesel fuel? <http://nnsa.energy.gov/sites/default/files/nnsa/08-14-multiplefiles/DOE%202012.pdf>

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fuel cars can operate23. Some other properties between gas ethanol are displayed in

the table below24.

TABLE 1. PROPERTIES OF GASOLINE AND BIOETHANOL

SOURCE: BRAZILIAN ENTITIES BNDES AND CGES25

Parameter Unit Gasoline Bioethanol

Lower calorific value kJ/kg 43.500 28.225

kJ/l 32.180 22.350

Density Kg/l 0,72 – 0,78 0,792

RON (Research Octane Number) – 90 – 100 102 – 130

MON (Motor Octane Number) – 80 – 92 89 – 96

Latent heat of vaporization kJ/kg 330 – 400 842 – 930

Air/fuel ratio stoichiometric 14,5 9,0

Vapor pressure kPa 40 – 65 15 – 17

Ignition temperature degree C 220 420

Water solubility volume % ~ 0 100

3.2. Biodiesel  

Biodiesel is commonly a mono-alkyl fatty acid ester prepared out of vegetal oil from

several sources like Soybean Oil, Canola Oil and Palm Oil. Blends higher than B20

could provoke problems to the engine. Plus, they are more expensive and can reduce

the energy content of the fuel26. So far, it is mostly made from Soybean.

                                                                                                                         

23 Yüksel, Fikret and Yüksel, Bedri. The use of ethanol–gasoline blend as a fuel in an SI engine. v. 29, issue 7, 2004, 1181–1191.  

24  Colorado State University. Alcohol for motor fuels. Fact sheet no 5.010. 2014.  

25Sugarcane-based bioethanol: energy for sustainable development / coordination BNDES and CGEE – Rio de Janeiro: BNDES, 2008.

26  Jääskeläinen, H., Biodiesel Standards and Properties. <https://www.dieselnet.com/tech/fuel_biodiesel_std.php>. 2009.    

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The pie chart in the figure 9 shows the U.S. production in 2013. From it, more

than half of the American Supply comes from Soybean. Another crop-based feedstock

(Palm, Canola and Corn) can also be used as well as animal fat-based (tallow and

poultry) and recycled greases (yellow and white)27.

FIGURE 8. MAJOR FEEDSTOCKS USED FOR BIODIESEL PRODUCTION (2012)26

The Brazilian production is mainly Soybean and Animal fat27.

FIGURE 9. BIODIESEL SOURCES FOR BIODIESEL PRODUCTION IN BRAZIL27

Animal fat or wasted oil require additional treatment to participate in the

reaction to produce the biofuel. Water or free fatty acids are substances that can favor

saponification reactions during the procedure28. This is going to be detailed ahead.

                                                                                                                         27  Energy Information Admisnitration  

28  Phan, Ahn. Biodiesel Production from waste cooking oil. Fuel. V. 87, 3490-3496, 2008.  

80%  

14%  

3%  3%  

Biodiesel  Sources  -­‐  Brazil  

soybean  oil   bovine  fat   cottonseed  oil   other  raw  materials  

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Algae are the most studied source of biodiesel so far due to possibility to

combine wastewater treatment with the low use of land and high productivity. The

major problem is the price per gallon yet. Other sources of vegetable oil as Jatropha

Curcas, Coconut Oil and Palm Oil have been investigated as biodiesel source due to

its high productivity30.

This is displayed in the table 2 from the American Oil Chemists Society.

Algae productivity can be as high as 307 times the Soybean production using land

lower than 1% of than it. Comparing to the same conventional source, Palm Oil has

13.34 times the production per hectare. Coconut and Canola also has greater

performance but corn is better as ethanol source rather than biodiesel30.

TABLE 2. COMPARISON BETWEEN BIODIESEL SOURCES

SOURCE: AMERICAN OIL CHEMISTS SOCIETY29

Crop Oil Yield (L/ha) Land Area needed (M ha) % of existing US crop área

Corn 172 1,540 846

Soybean 446 594 326

Canola 1,190 223 122

Jatropha 1,892 140 77

Coconut 2,689 99 54

Oil Palm 5,950 45 24

Microalgaeb 136,900 2 1.1

Microalgaec 58,700 4.5 2.5

a. for meeting of all transport fuel needs fo the U.S. M ha, million hectares

b.70% oil by weight in biomass

c.30% oil by weight in biomass

 

                                                                                                                         29    American  Oil  Chemists  Society.  <http://www.aocs.org/index.cfm>. accessed on august 27th, 2015.  

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4 – Conventional procedures  

4.1. Ethanol from sugarcane and corn

Most of the current production comes from sugarcane in Brazil and corn in the U.S.A.

The first is the world leader in sugarcane production. The American land cannot grow

sugarcane30.

The alcohol is distillated after the sugarcane juice is extracted from the

grinded cane and fermented by the yeast. This juice is rich in sugar (18.9-22%) and is

used as a meal for the yeast to have its energy and liberate alcohol and CO2. The

operation is highly efficient. It uses the sugarcane trash (obtained after juice

extraction) to generate heat for other processes in the same plant and for producing

energy for both the plant and the grid. 1 ton of sugarcane can generate 85 liters of

alcohol31,32. The Energy balance for the process is 8.9.

The process is observed in figure 11.

FIGURE 10. FIRST GENERATION OPERATIONAL PROCEDURE30

                                                                                                                         30 Sugarcane.org 31The International Renewable Energy Agency 32  Shell.com  

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On the U.S. side, the corn is first grinded to better expose the starch. Then it

goes to an enzymatic breakdown where the starch is converted into simple sugars.

Since it the route is similar with fermentation and distillation34.

FIGURE 11. CORN PROCESS TO PRODUCE FUEL ALCOHOL

SOURCE: SYNGENTA33

 

This is the Syngenta procedure found on its webpage where the production of alcohol

is shown in a scheme. Amylases are the enzymes used to break down the starch in this

case.

4.2. Biodiesel from animal fat or soybean

Transesterification is the common procedure to make biodiesel out of vegetable oil or

animal fat. It involves homogeneous catalysts (usually sodium hydroxide or

methoxide) and alcohol as reactants, methanol or ethanol. As a byproduct, glycerin is

produced in the reaction and can be used in many different new routes34. After

procedure the product is dried off and sold to the market.

                                                                                                                         33 <http://www.hielscher.com/biodiesel_processing_efficiency.htm>

34 Diaz-Alvarez, A. and Cadierno, V., Glycerol: A promising Green Solvent and Reducing Agent for Metal-Catalyzed Transfer Hydrogenation Reactions and Nanoparticles Formation, Applied Science, V. 3, issue 1, 2013.  

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FIGURE 12. BIODIESEL PRODUCTION FROM OILS AND FATS

SOURCE: HIELSCHER–ULTRASOUND TECHNOLOGY

FIGURE 13. POSSIBLE ROUTES FOR GLYCERIN AS RAW MATERIAL35

                                                                                                                         35 Farnetti, E. et al. A novel glycerol valorization route: chemoselective dehydrogenation catalyzed by iridium derivatives. Green Chem., 2009,11, 704-709.  

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4.2.1. PRETREATMENT

Ideally, the vegetable oil must participate in the reaction free from fatty acids or

water. Their presence could lead to saponification reactions, which complicates the

separation of glycerin and biodiesel in the end. Often, wasted oils contain more fatty

acid and therefore need to be more intensively processed.

 4.2.2. Transesterification

In conventional routes, the reaction takes place in a batch or continuous reactor with

homogeneous catalysis. Sodium Hydroxide or Sodium Methoxide is usually used in

this reaction. Na is then recovered in different forms after the reaction. Water or free

fatty acids favor saponification reactions. In general, methanol is used in excess to

reach a high degree of conversion. In average, 45 degrees is a good temperature for

good yield36,37

FIGURE 14 - TRANSESTERIFICATION PROCESS38

                                                                                                                         36  Brazilian Agricultural Research Corporation (EMBRAPA)  

37 Bournay et al, New heterogeneous process for biodiesel production: A way to improve the quality and the value of the crude glycerin produced by biodiesel plants. Catalysis Today. V. 106, 190–192, 2005.

 

38  impergam.sk  

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5. Biofuels Programs 5.1. Pro-alcohol

Brazil was living the so-called “economic miracle” importing most of its oil in the

early 70s when the oil prices went from roughly US$3 to US$12. The devastating

impact on the economy has driven the government to create a national program for

fostering the use of alcohol in the vehicles. This program had five main stages.

Since 1975 to 1979, new annex distillation plants were built at the existing

sugar plants. Anhydrous alcohol was the product. The production increased from 600

million to 3.4 billion liters annually in this phase. Hydrated and total alcohol grew

more than 600% in production. 13 new distilleries were created.

In the 80s, alcohol-driven cars were manufactured, which later would

represent 76% of the fleet. There had been incentives for using this cars and the

production of hydrated alcohol. In this step, the production raised from 2.6 million to

7.3 million liters of alcohol (hydrated + anhydrous). Distilleries came from 14 to 73

units in this step of the program.

In 2003, the concerns on climate change have motivated the program to be

retaken by Luis Inácio Lula da Silva. Since then, the production accelerated again

until the economic crisis of 2009 that made the production stop.

Finally, better sugar prices, prioritization of economic policy over energy

policy, bad plantation yields, mechanization of the plantation, and lack of investments

to renew the plantations slowed down the production once more39.

 

                                                                                                                         39 Filho, A.A.V. and Ramos, P., Proálcool e evidências de concentração na produção e processamento de cana-de-açucar. Informações Econômicas, SP, v.36, n.7, jul. 2006.

 

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5.2. Why the production stopped after the world economic crisis?

In Brazil, the same plant that produces sugar is responsible for the production of

ethanol. When the price of sugar in the international market is more profitable

compared to the alcohol price, it makes more sense to produce ethanol. That was one

of the main reasons that made the ethanol production fall after the economic crisis due

to the hike in the sugar prices.

The chart below compares the price of the commodity to the Brazilian

production. From the curves, while the prices increase the production stabilizes.

(figure 16)

 

FIGURE 15 - COMPARISON BETWEEN SUGAR PRICES AND ETHANOL PRODUCTION39

Brazil controls the prices of gasoline and diesel as an economic policy, to control the

inflation. This creates an artificial competition between the concurrent fuels. So when

the market says it is favorable to buy alcohol over gasoline, the Brazilian government

takes the costs and maintains the fossil fuel consumption. This policy is a barrier once

there is no free concurrence in the market. It makes it unpredictable for decision

makers or stakeholders to invest. Also, the taxes for the biofuel does not make it

appealing to the consumer. It is cost effective (the price of alcohol is less than 70%

the price of gasoline) to run on hydrated alcohol only in a few cities close to the

production such as Sao Paulo40. The disacceleration in the production can also be

                                                                                                                         40    Monthly report from national oil and biofuels Brazilian agency.  

0  

200  

400  

600  

800  

0   2   4   6   8   10   12   14  Year  

World  ReYined  Sugar  Price  (USD  per  ton)  

Brazilian  Sugarcane  Ethanol  Production  (thousand  barrels)  

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explained by the bad conditions that did not favor the sugarcane plantations after 2009

and the mechanization of them which reduced the amount of sugarcane produced per

hectare. Finally, the investments were reduced worldwide after the economic crisis.

5.3. The National Program for Biodiesel Production

The biodiesel program began in 2004 when the president Luis Inacio Lula da Silva

created it. It fisrt started with the experience of two years without official mandates to

test the product in the market and then started the legislation from 2006 with a 2%

mandate for the blend mix. The program gradually increased the mandatory content in

the blend mix until the last increase in November of 2014 which increased the blend

mix to 7%.

The program included incentives for producers to purchase its raw materials

from small farmers. This is the so-called "Familiar Agriculture". The way it works is

that the producer buys the vegetable oil from small farmers and acquires the stamp

"Social Fuel" by doing so. With this stamp, he gets rights to compete in bid auctions

offered by the National Agency of Petroleum and Biofuels for the available national

demand. Results of the program have shown their strength to develop these kind of

economies and generate a source of income for small farmers. Since the program

began, the installed capacity has increased substantially, however, the market absorbs

only part of this capacity as long as the limit is defined by the demand (a function of

the blend mix). This limit is similar to the so-called "Blend Wall" which the

Americans deal with41.

5.4. Renewable Fuel Standard  

A program that creates volume targets for the biofuels production, the RFS was part

of the Energy Policy Act of 2005 and has driven the country’s advances in this market

in the last decade. In its first edition, the main target was to reach the production of

7.5 billion gallons of biofuels by 2012. In 2007, the RFS was updated and started to

require new volumes, the type of source, and established new criteria for the use of

the sources with lower limits in GHG reductions.

                                                                                                                         41  Rodrigues, R.A., A Política do Governo Federal para os Biocombustíveis e o Contexto Intenacional. Public Policies and Governmental Administration Magazine. V. 14, n. 1, 2015.    

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The main focus now is to increase cellulosic capacity by 2022 (16 billion

gallons). The new targets as well as the new requirements for the use of each source

are displayed in figure 17. From the 36 billion gallons to be annually produced by

2022, sixteen must come from cellulosic materials such as wood, corn stalks, corn

leaves, and grass. 4 billion gallons have to come from “other sources” like sugarcane

(imports). One billion must come from the regular biomass-based sources. The nested

diagram below illustrates the volume requirements and how they can work. For

instance, if 1 extra cellulosic gallon is produced it can substitute the corn ethanol

target. However, the opposite is not accepted.

The volume is  increased until  it  reaches  the capacity  limit and maintains  

production at  that  particular value. Currently, these volumes are to  be changed  

by  the Environmental  Protection  Agency  (EPA), which has  the  tools  to control  

the volume  targets. New volumes will be set by the end of this year for 2014, and

2015 targets.42

FIGURE 16. BIOFUELS PRODUCTION AND TARGETS AFTER 2013

SOURCE: SIA-PARTNERS: ENERGY OUTLOOK

                                                                                                                         42  Regulatory announcement, EPA Proposes 2014 Renewable Fuel Standards, 2015 Biomass-Based Diesel Volume, Office of Transportation and Air Quality, 2013.

 

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5.4.1. RFS2: Impacts

40% of the corn production was intended for fuel consumption in 2013. This had a

positive impact on the economy for corn farmers since the increase in demand raised

the price from 2.13 dollars to $ 7 a bushel43. However, farmers that use corn in its

production chain were negatively impacted by these prices. For example, those who

use corn as feed for cattle, dairy, poultry, and hogs have seen their production costs

rise. Also, those who use corn as a regular part of their diet suffered these impacts,

especially those who cannot afford the higher prices (vets4energy.com: renewable

fuel standard44).

The chart below illustrates the hike on the corn prices with the increasing use

on biofuel production.

FIGURE 17. USE OF CORN FOR FUEL PRODUCTION RELATED TO THE PRICE OF CORN

SOURCE: MYGOVCOST.ORG

Figure 19 is a cartoon that represent the overall criticism of corn use for ethanol

production.

                                                                                                                         43  National Corn Growers Association. Renewable fuel standard assessment - White paper. Accessed on august 27th, 2015.  

44  vets4energy.com: renewable fuel standard. Accessed on august 27th, 2015.  

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FIGURE 18 - CHARGE ABOUT THE ISSUES BETWEEN CORN AND FOOD PRICES45

 

The chart below, figure 20, shows how the net imports for gasoline were affected

after the RFS. It strongly reduced after the startpoint of the RFS, which represents less

costs for importing this type of fuel.

 

FIGURE 19 - ETHANOL PRODUCTION AND GASOLINE IMPORTS FOR THE U.S

SOURCE: ENERGY INFORMATION ADMINISTRATION

                                                                                                                         45  wordpress.com, Food vs fuel, <https://kevinschulke.wordpress.com/2008/04/17/food-versus-fuel/>. Accessed on August, 2015.  

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5.4.2. Renewable Identification Number

Renewable Identification Number (RIN) is a tool for the government to control and

encourage the use of biofuels in the United States. These are 38-digit code numbers

associated to each produced ethanol batch and sold to the blenders. Once it is sold, the

RIN is now free and can be sold at the RIN’s market. Figure 21 shows the prices of

RINs according to the years. Fuel producers have a certain amount of required RINs

and they can either buy it in the market for RINs or associated with the batches. Table

4 illustrates the value of RIN for the various types of biofuels defined by the RFS.

FIGURE 20 - MARKET FOR THE RIN’S PRICES

SOURCE: CREDIT SUISSE/BLOOMBERG

The Blend wall is another obstacle to the biofuels market and refers to the inability of

it to absorb the alcohol production because of the blend mix limit. Figure 22

illustrates the blend wall barrier.

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FIGURE 21 - BLEND WALL FOR THE ALCOHOL BLEND

SOURCE: RENEWABLES FUELS ASSOCIATION  

6. Current biofuels issues

Increasing demand for the basic law of supply and demand has an impact on the

prices. A major problem associated to the use of corn as a fuel source was the rising

corn prices. Some societies are overly dependent on corn for their basic diet. So, poor

people would be the most affected by the price of oil.  

Ethanol production process from sugarcane reduces emissions of greenhouse

gases by up to 80% on a lifecycle analysis. Using corn, this number falls to roughly

20% (figure 23). What this analysis does not consider, however, is the amount of

GHG emitted when the scale-up of production to the level of total demand of the

population. In this case, the use of renewable fuels, including soy biodiesel, begins to

emit more GHG compared to fossil fuels (figure 24). Moreover, the cultivation of

these crops is water-intensive and requires fertilizers and N-pesticides which reduce

soil quality.

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FIGURE 22 - EMISSION REDUCTION FOR DIFFERENT SOURCES

SOURCE: ENVIRONMENTAL PROTECTION AGENCY

 

FIGURE 23 - LIFECYCLE ANALYSIS CONSIDERING LAND-USE CHANGE46

 

Lifecycle (figures 23 and 24) analysis refers to the balance of carbon dioxide

emissions throughout the production chain of a fuel. In the case of biofuels, the so-

called well-to-wheels analysis means the emissions of harvesting, logistics, and the

burning of the fuel in the engine. The results are compared to a similar analysis for

the equivalent fossil fuel. The potential CO2 reductions were shared in the last section

and show clearly the environmental advantages of using sources such as cellulose or

sugarcane instead of corn to produce ethanol. For biodiesel, the environmental gain

by using conventional or next generation sources are up to 88.5%. It is important to

                                                                                                                         46  Takle, E. and Hofstrand, Don., Global Warming – More on Bio-fuels. Iowa State University. 2008. <https://www.extension.iastate.edu/agdm/articles/others/TakJune08.html>    

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find a source that is less land-intensive, while land use change can make the use of

biofuels worse for the environment.

7. Ethanol production from alternative sources  

7.1. Ethanol from second generation sources

The main goal behind the RFS policy is to foster the use of cellulosic sources. As a

consequence of its targets, there must have 16 billion gallons of cellulosic ethanol

going to the transportation sector every year since 2022. Today, there is one opened

plant in the state of Iowa (POET-DSM Project Liberty) that processes 770 tons/day of

corn stover and other two under development (Kansas and 30-million liter per

year/Dupont in Iowa and 25-million liter per year/Abengoa in Kansas)- EIA— into

ethanol. In Brazil, the first second-generation ethanol plant was implemented by

GranBio in Alagoas. The process is integrated and reduces losses. The costs per liter

are 0.4 cents for 1st generation alcohol and 0.9 cents for the 2nd generation fuel47.

Some incentives were created by the EISA to foster cellulosic ethanol. Tax

credits higher than the ones for corn ethanol 1.01 dollars per gallon compared to 0.45

cents per gallon) and funding for new cellulosic plants to profitability are examples.

 

                                                                                                                         47  biofueldigest.com  

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7.2. Cellulosic ethanol  Cleaning land to increase biofuels capacity can make the CO2 emissions higher than

fossil fuels. Richard Smalley, who was awarded with a nobel prize in chemistry,

ranked energy and water as the main challenges for 2050. Cellulosic ethanol can

reduce the use of water and land by fostering the use of plants that are not water and

land-intensive as switch grass, sugarcane bagasse, corn stalks and leaves42. The

chance to integrate first and second generation processes are appealing. An integrated

plant was built in 2014 in the state of Alagoas, Brazil. The cost per volume is still

higher if compared to the use of juice: 0.91cents per liter and 0.49 cents per liter . The

expensive step is the enzymatic hydrolysis, which use an expensive enzyme. New

studies should be conducted in order to reduce the cost of breaking the cellulose into

sugar.

The comparison between GHG emissions from the two sources can be

observed below. The reduction and thus the potential for cellulose are clear48.

FIGURE 24 - GHG EMISSIONS FOR TRANSPORTATION FUELS41

                                                                                                                         48  Alternative Fuels Data Center-Ethanol Vehicle Emissions. <http://www.afdc.energy.gov/vehicles/flexible_fuel_emissions.html>. Accessed on august 27th, 2015.  

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The figure below illustrates the environmental benefits by using different types of

ethanol with different sources42.

FIGURE 25 - COMPARISON IN EMISSIONS BETWEEN DIFFERENT ALCOHOL ORIGINS49

7.3. Algae for biofuel

The production of biofuels from algae sources is a hot topic in Biofuels. Many papers

have been released about its use to fulfill the U.S. transportation sector. The main

points are its versatility, high oil content, fast growth, low need for land, and

resilience to grow in different environments50.

                                                                                                                         49 Wang, Michael et al, Well-to-wheels energy use and greenhouse gas emissions of ethanol from corn, sugarcane and cellulosic biomass for US use. Environmental Research Letters 7, 2012.

50  Oilgae.com. Where does algae grow? – Algae Growth Environments. Accessed on august 27th, 2015. < http://www.oilgae.com/algae/sources/sources.html>  

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They can be used to make bioalcohol, biodiesel, biogas, and biohydrogen51,52. It is a

promising source for alcohol production53. However, it still has greater costs when

compared to conventional sources. The costs can get up to $3.67/lb54.

Some algae characteristics such as productivity, water use, production costs, and yield

to biodiesel are compared in table 3. From the table, it is clear that the cost per liter of

fuel of the mean microalgae is a hundred times higher than the current source. Algae

do not need much water too grow if compared to conventional sources45. The lower

requirements for land is noticeable and it is a major issue in the market. Another

valuable point is the potential to clean wastewater during its growth. A big obstacle

today, though, is the growth of predator species which could be avoided by genetic

engineering to reduce these costs55.

TABLE 3 - COMPARISON BETWEEN DIFFERENT SOURCES OF BIODIESEL PRODUCTION45

                                                                                                                         51  Jones CS and Mayfield SP. Algae biofuels: versatility for the future of bioenergy. US National Library of Medicine National Institutes of Health. 23(3):346-51. 2012.  

52  González-Delgado et al. Microalgae based biorefinery issues to consider. CT&F Ciencia, Tecnología y Futuro. V. 4, No. 4, 5-21, 2011.  

53 Chaudhary, Lalitesh et al., Algae as a Feedstock for Bioethanol Production: New Entrance in Biofuel World. International Journal of ChemTech Research. V.6, No. 2, 1381-1389, 2014.

54  Richardson, J.W., Outlaw, J.L., & Allison, M., The economics of microalgae oil, AgBioForum, 13(2), 119-130, 2010. Available on <http://www.agbioforum.org>.  

55 Azeredo, V.B.S.de., Produção de biodiesel a partir do cultivo de microalgas: estimativa de custos e perspectivas para o Brasil. Master dissertation. Coppe-Federal University of Rio de Janeiro. 2012.

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In an economic feasibility study, Vinícius de Borges Salles Azevedo considers

that the major costs of production are biomass growth and recovery. They have great

potential to be comparable or lower to the conventional methods in the future in terms

of costs. Co-product selling represents another alternative to further reduce the costs.

8. Key points of this work

• Biofuels have been a great tool for combating climate change and promoting

energy security. By growing the country’s national energy market and raising

GDP by so, helping the economy of small farmers, and reducing the GHG

emissions, it is helping to develop a sustainable future.

• The history of biofuels in Brazil and in the world started after the great impact

of the Oil Embargo in its economy. With effective policies, the pro-alcohol

program, created in 1975 to deal with the 4 times higher oil prices, had three

successful stages that matched with the times of high oil values (1973-1986)

and increasing concerns about climate change (2003-2009).

• In the US, the production has hiked to a rate never seen before after the

creation of the Renewable Fuel Standard, in 2005. After 10 years, this

program has created 15 billion gallons yearly of capacity of corn ethanol. The

program was updated in 2007 and is now focusing and pushing the production

of cellulosic ethanol. Also, it has established minimum requirements for GHG

emissions in each type.

• The capacity for biodiesel or bioalcohol has to move from crop-based as Soy,

Corn and Sugarcane, which are water and land-intensive, to the next

generation biofuels such as algae or cellulose in order to deal with issues as

the rise on corn prices, greenhouse emissions from land use change and water

use. The latter are questioning the sustainability of biofuels.

• The next generation of this greener fuels represent an appealing future once

they are versatile (many biofuels can be produced from algae), requires lower

amounts of natural resources such water or land to grow and does not compete

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with food crops. A big effort is in place for trying to reduce the costs per

pound or per liter of algae or cellulosic renewable fuels. They are the big

barriers for the implementation of these fuels

• Main issues for the production process of algae are the cost for infrastructure

and the appearance of predator species during its growth. Costs can be cut

dealing with genetic engineering or reducing the costs for photo-bioreactors

(PBRs). For cellulose, the main issue is to reduce the cost of breaking the

cellulose into sugars. The current enzyme used in the process is expensive.

• Brazil has a great opportunity to increase its blend mix requirement for

biodiesel as long as more than 50% of the Brazilian’s biodiesel plants capacity

is unused.

• Investments on R&D have been released in the Energy Independence and

Security Act of 2007 in the US. In Brazil, universities make the job of

growing the expertise by master and doctorate programs. It is an important

action to make the costs lower until it makes economic sense as every new

technology works.