BIODIESEL

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Presentation to The East Tennessee Clean Fuels
Coalition June 11, 2003
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What is Biodiesel?

• Biodiesel is a methyl ester derived from a wide
  range of vegetable oils and related biomass
  (fatty acid) feedstock.
  
• Biodiesel is made through a conventional chemical
  process known as transesterification.
• Griffins BioG-3000 is a registered fuel and fuel
  additive with the U.S.EPA

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Griffin Industries Biodiesel Plant
Butler, Kentucky
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Griffins BiodieselProduction Advantages

• Commercial manufacturer and marketer since 1998
• Patented technology resulting in high product
  yields, low emissions
• Feedstock flexibility
• Can use any vegetable oils, greases, or tallow

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Biodiesel Raw Materials

• Oil or Fat Alcohol
• Soybean Methanol
• Used cooking oils Ethanol
• (yellow grease)
• Rapeseed
• Cottonseed Catalyst
• Sunflower Potassium hydroxide
• Corn Sodium hydroxide
• Beef tallow
• Pork lard

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Griffin Locations
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Biodiesel Distribution
Fuel distributor receives biodiesel from
biodiesel plant.
Biodiesel is taxed the same as diesel fuel.
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How Can Biodiesel Be Used?

• B100 As a pure (neat, or 100 vol.) fuel
• B20 As a blending stock with petrodiesel (20
  vol.)
• B2 In low levels with petrodiesel
  (lt1 up to 5 vol.)
• ANYWHERE 1 or 2 petrodiesel is used

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Biodiesel Technical Attributes

• BTU value (power) between 1 and 2
• Sulfur - virtually none
• Aromatic - virtually none
• Cetane Rating - average of 53
• Flash Point - above 100C
• Biodegradable
• Non-toxic

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Biodiesel Emissions Health

• Biodiesel is one of only two alternative fuels to
  successfully complete the EPA-required health
  effects testing under the Clean Air Act of 1990.
  The tests showed no health threats and a 90
  reduction in air toxins.
• Mutagenicity studies show that biodiesel
  dramatically reduces potential risks of cancer
  and birth defects.

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Biodiesel Emissions(U.S. EPA)
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Biodiesel SpecificationASTM D6751-02
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Engine Manufacturer Warranties

• Engine manufacturers do not warranty any fuels -
  only workmanship and materials
• Biodiesel blends will not void an engine
  manufacturers warranty

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Engine Manufacturers Position on Biodiesel
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EPAct (Energy Policy Act) and Biodiesel Credits

• Provisions of EPAct mandate alternative fuel
  vehicle (AFV) purchases for Federal, State, and
  fuel provider fleets
• Each purchase of 450 gallons of neat biodiesel
  fuel (B100) is equivalent to 1 AFV credit each
  purchase of 2,250 gallons of B20 is equivalent
  to 1 AFV purchase

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Presidential Executive Orders

• Greening the Government Through Waste Prevention,
  Recycling and Federal Acquisition
• EO 13101 - Principal Federal policy directive for
  resource conservation and pollution prevention
• EO 13149 - Federal fleets mandated to cut
  petroleum use in Federal fleets by 20 by 2005

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Mammoth Cave N.P.
Generator/Storage tank
Mowers/Ferry
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Biodiesel
Why biodiesel makes sense.
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Biodiesel Economics

• Biodiesel can be the cost-effective solution for
  medium and heavy-duty vehicles to help
  accomplish
• Energy Policy Act (EPAct) goals
• Clean Air Act goals
• Presidential Executive Orders- 13101/13149
• Reducing dependence on foreign oil
• Average cost is .01/gallon for every 1
  blend.

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Biodiesel Economics

• Blends completely with petrodiesel
• Existing distribution system can be used (pipes,
  tanks, fueling stations)
• Safety infrastructure not required
• Existing engines can be used
• Good solvent, may clean out system initially
• B100 will degrade some types of natural rubber

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National Energy Bill - Status

• April 11 House passed H.R. 6
• May 5 Senate began debate on S.14
• June Senate is likely to pass S.14
• Before August recess House/Senate Conference is
  likely to present combined bill for vote and
  Presidents signature.
• Odds for Energy Bill this year are very good

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Energy Bill Biodiesel Provisions

• Renewable Fuels Standard includes Biodiesel
• - House (5 billion gallons by 2015)
• - Senate (5 billion gallons by 2012)
• Biodiesel Tax Incentives
• - House (none)
• - Senate (Agribiodiesel would receive a
  blended mixture tax
• credit equal to 1 cent per percentage point
  up to 20 of a
• Biodiesel blend. Agribiodiesel refiners
  would also have the
• option of taking a federal Motor Carrier
  Excise Tax rebate.
• Recycled oil based Biodiesel would receive
  ½ of 1 cent per
• percentage point up to 20 of a Biodiesel
  blend, with no
• option to take a Motor Carrier Excise Tax
  rebate.)

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Biodiesel Users(Presently over 150 fleets with
40 million road miles)

• Cincinnati METRO, Transit Authority of N.KY,
  Lexington Transit
• Mammoth Cave National Park (short summary 1)
• Kenton County
• Farming operations across Kentucky
• Nashville Electric Service
• Vectren Utility
• Cinergy
• State Departments of Transportation
  Florida, Ohio, North Carolina,
  South Carolina, Delaware, New Jersey, New York
• Numerous School Districts
• Georgia Building Authority (short summary 2)

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Additional Markets
Stationary Generator
United Energy Dist.- Aiken, SC.
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Potential Markets

• Marine engines (B100)
• Environmentally-sensitive areas
• and wetlands
• Underground Mining, Off-road equipment and
  agriculture
• Locomotives
• Heating oil (B20)

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Conclusion

• Griffin is
• Vertically integrated
• Quality producer of biodiesel - ASTM
• Feedstock advantaged
• A respected, proven leader in the biodiesel
  industry
• A growing supplier of specialty methyl esters
  into non-fuel markets

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