Is it the era of renewable diesel?

Everyone knows that traditional diesel fuel comes from oil. Many people may be familiar with the term "biodiesel", which is derived from vegetable oils and/or animal fats.

But the process of making biodiesel requires the introduction of oxygen into the fuel – which causes problems, including the freezing temperature of the liquid, the separation of the storage process, the growth of algae in the fuel tank, and higher emissions. Biodiesel is usually blended with petrochemical diesel to maintain a ratio of 5% to 20%.

Recently, so-called regenerative diesel has emerged, also from renewable resources: such as soybean, palm, rapeseed, or rapeseed oil, tallow, vegetable oil waste or brown waste oil and other fats and vegetable oils.

The biggest difference between renewable diesel and biodiesel is in the production process. The production process of renewable diesel is similar to that of petrochemical diesel, which makes it chemically equivalent to petrodiesel. At the same time, renewable diesel does not contain oxygen, so users do not have to worry about freezing temperatures and storage like biodiesel.

Renewable diesel will also be cleaner than biodiesel due to the hydrogenation process. Perhaps most importantly, because renewable diesel has the same chemical structure as petrodiesel, it can be used in engines that were originally designed to run with conventional diesel fuel without any mixing.

According to GreenFleet magazine, renewable diesel brings many benefits. In addition to the renewable nature of the fuel, it burns cleaner and it works like traditional diesel. GreenFleet magazine points out that switches no longer need to consider performance issues or adjust machines to accommodate fuel.

Renewable diesel is also compatible with existing diesel distribution infrastructure, which means it can use existing pipelines, tanks or retail station pumps. It can be produced using existing refinery production capacity and does not require a large number of new production facilities.

In terms of carbon dioxide, depending on the degree of mixing, renewable diesel can reduce its emissions from 13% to 90%. Proponents also claim that these new materials can also eliminate carbon dioxide from the air if extracted from plants.

With all these benefits, why didn't renewable diesel begin to really be widely used? The answer is of course the cost.

The Alternative Fuels Data Center reported that the latest data for April this year showed that the price of regular diesel was about $2.13 per gallon, compared to $2.81 for renewable diesel – a 31% premium. Conventional biodiesel is only $2.23 per gallon.

However, in California, the cost issue is not that important. The US Low Carbon Fuel Standard (LCSF) can offset a portion of the cost. This has led to the overall shift of the city of Auckland to renewable diesel. Since the fall of 2015, they have used renewable diesel in all diesel-powered equipment, including fire-fighting equipment and off-road equipment.

Auckland City Equipment Services Manager, Butterby Richard told GreenFleet magazine: "We hope to replace the consumption of about 250,000 gallons of petrochemical diesel, and eliminate more than 1,500 tons of greenhouse gas emissions per year, we have not encountered any problems. The most common reaction I have experienced is that many people do not believe that there is a clean burning direct diesel alternative from renewable resources, and there is no additional cost to the fuel itself, nor the need to renew equipment and infrastructure."

In July 2015, UPS Express, which delivered a huge amount of delivery, announced that it would purchase up to 46 million gallons of renewable diesel in the next three years, helping the company achieve its fuel-saving goal: to replace 12% of the UPS ground fleet by 2017. Petroleum fuel.

Mike Whitlatch, vice president of global energy and procurement at UPS, said: "In fact, from a performance point of view, renewable diesel is as good or even better than conventional fuels. For example, using renewable diesel in cold weather. It is easier to start the car."

In the case of natural gas trucks, there is a problem with chickens and eggs. There are few natural gas trucks outside California, demand will gradually increase, and demand will increase.

On this issue, Whitlatch also observed that building a market is a function of “how many biorefineries are built and how much renewable diesel is produced”.

However, without the incentives of the California model, cost differences may prevent many companies and government agencies from using renewable diesel.

Of course, I hope that with the increase in production, the price of renewable diesel will decrease in the future. Given its superiority over conventional diesel and biodiesel, the long-term prospects for renewable diesel are bright.

Translated from: August 29, 2016 [United States] thegreensupplychain.com
Compilation: Gao Qiqi, International Economic and Technical Cooperation Center, Ministry of Industry and Information Technology

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