Manufacturing Ethanol-Based Biodiesel from Imported Vegetable Oil
Most biodiesel is “Methyl-ester” - made by estrification, using oil and Methanol. Historically, biodiesel standards (including ASTM) have been based on “Methyl-ester”, nearly eliminating “Ethyl-ester” - biodiesel made with ethanol instead of methanol - from the market place. Major shifts in the market and regulatory systems may change this, for the betterment of the industry and the environment. Here’s why:
1. When the current standards were set (early 2000s), Methanol was very inexpensive and Ethanol was prohibitively expensive. Now Methanol - derived from natural gas - has increased with the cost of natural gas, and Ethanol has decreased. This gap will only widen in the future as the cost of natural gas and Methanol continue to rise.
2. Nearly all of the testing for the superior environmental benefits of biodiesel is based on it being “Methyl-ester” made with Methanol. The environmental benefits of “Ethyl-ester” have also been tested and proven to be superior to Methyl-ester; in addition they do not require the use of natural gas.
3. The new 2007 Energy Bill no longer requires bio-fuels to meet ASTM standards, perhaps not good for the biodiesel industry, but it opens the door to Ethyl-ester receiving the same tax credits as Methyl-ester. As U.S. biodiesel production nears 1 Billion GPY (’09) or 10 Billion GPY (’15), this means new markets for Ethanol of 100 million GPY (’09) to 1 Billion GPY (’15), and an equal reduction in Methane use.
4. A major reason that biodiesel is not ranked highly as a Carbon Reducing product is that it’s been made with natural gas-based Methanol, not agriculturally-based, (and soon to be cellulosically- based) Ethanol.
5. The world’s leading carbon trading company, EcoSecurities usually only awards credits for plants using Used or Waste Oil. However, Common Grove is asking them to work with us to award Carbon Credits for Ethyl-Ester, which will help greatly increase its use in the marketplace.
ABC is leading the way on this challenge. Common Grove knows of no other biodiesel company forwarding the use of Ethyl-ester as a way to better improve the environmental and carbon reducing effects of biodiesel, while also helping to make biodiesel more profitable - currently a major problem.