Biodiesel Fact Sheet
Transesterification
Market Overview
Gasification
Biomass is converted into a gaseous
mixture of hydrogen, carbon monoxide, &
carbon dioxide by applying heat under
pressure in the presence of steam and a
controlled amount of oxygen.
The most well-established technology for
biodiesel production is transesterification.
The process involves filtering the
feedstock (vegetable oil or animal fats) to
remove water and contaminants, and then
mixing the feedstock with methanol and a
catalyst.
This process causes the oil molecules to
break apart and reform into esters
(biodiesel) and glycerol, which are then
separated from each other and purified. A
by-product of this process is glycerine,
which is used in many types of cosmetics,
medicines, and foods.
prepared by NEEIC
http://www.neeic.org
Biodiesel made up 84% of the 3 Mtoe of
all biofuels produced and consumed in
the European Union in 2005. Germany
accounted for 62% of EU biodiesel
output, with the rest coming from France,
Italy, and Spain. The United States
produced 220 ktoe of biodiesel in 2005.
Biodiesel Production Costs
The cost of producing biodiesel depends on the type of feedstock
and conversion technology. The current cost of biodiesel
production is estimated to be $0.60/litre of diesel equivalent in
Europe (based on rapeseed) and $0.50/litre in the United States
(based on soybeans). Production costs are projected to fall to just
of $0.30/litre in the U.S. and $0.40/litre in the E.U.
Biodiesel Emissions
According to the U.S. Department of Energy, biodiesel
production and use, in comparison to petroleum diesel,
produces 78.5% few carbon dioxide emissions.
Biodiesel is also the only alternative fuel to submit a
complete evaluation of emissions results and health
effects to the U.S. EPA under the Clean Air Act Section
211(b):
• The ozone forming potential of biodiesel hydrocarbons
is less than petroleum diesel fuel.
• Sulfur emissions are essentially eliminated.
• Reductions in carbon monoxide, particulates,
hydrocarbons, and nitrogen oxides.
U.S. EPA: Biodiesel Impacts on Exhaust Emissions
The biomass is chemically broken apart
by heat, steam, and oxygen, setting into
motion chemical reactions that produce a
synthesis gas, “syngas,”- a mixture of
hydrogen, carbon monoxide, and carbon
dioxide.
The Fischer-Tropsch process converts
syngas into diesel fuel.
Key Drivers in the European Union
European biodiesel production tripled between 2000 and
2005 due to the adoption of strong national incentives in
an attempt to meet E.U. targets.
 Under the EU Common Agricultural Policy and a trade
agreement with the U.S., set-aside land (land left fallow in
return for subsidy payments) can be used to grow biofuels
crops up to 1 million tons of soybean equivalent per year.
 Member states are permitted to levy lower excise taxes
on biofuels than on conventional fuels.
 Several countries provide financial incentives for
investment in biorefineries.
 2003 European directive requires all member states to
set non-binding targets for a minimum share of biofuels in
the road-transport fuels markets.
U.S. Biodiesel Production Capacity
• Presently 148 companies have invested in the development of
biodiesel manufacturing plants and are actively marketing
biodiesel.
• Annual production capacity from existing biodiesel plants is 1.39
billion gallons per year.
• 96 companies have reported that their plants are under
construction and will be completed within the next 18 months.
• An additional 5 plants are expanding their existing operations.
• New production capacity has the potential to add 1.89 billion
gallons of biodiesel per year.
Biodiesel Production Plants under Construction as of June 2007