Using manure to reduce the cost of growing canola as a biodiesel feedstock

Production of Fuel Crops to MakeProduction of Fuel Crops to Make
Biodiesel Using Animal ManureBiodiesel Using Animal Manure
John P. Chastain, Ph.D.John P. Chastain, Ph.D.
Professor and Agricultural Extension EngineerProfessor and Agricultural Extension Engineer
Wilder Ferreira, Extension EconomistWilder Ferreira, Extension Economist
School of Agricultural, Forest and Environmental SciencesSchool of Agricultural, Forest and Environmental Sciences
Waste to Worth Conference, Denver, ColoradoWaste to Worth Conference, Denver, Colorado
Grand Hyatt Hotel • April 1-5, 2013Grand Hyatt Hotel • April 1-5, 2013

Motivating Factors for Biofuels
 Increase in fuel prices.
 Desire to reduce energy costs to
produce crops.
 Desire to reduce exhaust emissions
that pollute the air.
 Concern over green house gases.

Objectives
 To compare soybeans and canola as
potential biofuel crops for on-farm
production of biodiesel.
 To determine the cost savings related
to using animal manure as the
nutrient source for on-farm biodiesel
production.

Is using vegetable oil for fuel in a
diesel engine a new idea?
 No.
 Dr. Rudolph Diesel demonstrated his
new invention at the World Exhibition in
1900.
 The fuel he used was pure peanut oil.
 He planned for farmers to grow their
own fuel!
 The original engine was later modified to
use petroleum diesel.

Biodiesel can be made from…
 Vegetable oils
 Animal fats
 Most any biodegradable oil

Biodiesel is a product of
transesterification
 Mix methanol and sodium hydroxide (or KOH)
 Mix this chemical solution, at the proper amount,
with oil/fat.
 Add heat and mix to allow the reaction to occur to
form methyl esters (known as “biodiesel”)
 Settle the mix into two layers – biodiesel and
glycerin.
 Separate and wash the biodiesel.
 Sell the glycerin for making soap and other
products. – Currently has no real value!

Biodiesel PropertiesBiodiesel Properties
 Biodegradable
 Renewable
 Chemical properties similar to diesel
fuels
 An exceptional lubricant. Contributes
to longevity and cleanliness of diesel
engines
 Smells better.
 Will clean an old engine.

But what about the energy required
for making biodiesel?
 We must remember that making fuel
from a crop takes energy.
 Fuel for tractors
 Fertilizers and pesticides all require
substantial amounts of energy also.
 Using waste oil/fat is better but is a
limited resource.

Energy Ratio for Soybean Biodiesel
 In 1998 USDOE calculated that the
energy ratio including by-products
was 3.2.
 Ethanol can be as high as 1.5.
 New study (2008) by USDA-OCE,
ARS, and University of Idaho revised
the calculation based on efficiency
improvements (ag & proc.) and found
it to be 3.9.

How does the energy ratio of soybean
biodiesel compare with petroleum diesel?
 Soy biodiesel w/out BP = 1.50
 Soy biodiesel w BP = 3.9 (3.2, 1998)
 Petroleum diesel = 0.83 (DOE, 1998)

So why don’t we have everyone
producing biodiesel?
 Energy ratio is not what controls the
market price.
 Supply and demand does.
 If I can produce enough of a product
at a profit then I can build a business
around it.
 Comparing ERs to $$$ is like
comparing apples to oranges.

The market reflects the ethical
choice.
 If we used all of the US soybean
crop for biodiesel we could only
replace 6% of current diesel usage!
(U of MN 2010)
 Do we grow food for hungry people
or grow crops to feed cars?

Clearly we can’t look at biodiesel
as a fuel for most vehicles.
Should farmers look at
making biodiesel for their
own use?

Maybe.
 Need to take into account the market
value of the crop and cost of
production.
 It cost $1.00 to $2.00 per gal to
make biodiesel if the oil is free.
 If you can get waste oil you can make
biodiesel for around $1.50/ gal.
 Is there an oil crop that we can grow?

Would soybeans be a good crop for
on-farm biodiesel production?
 One bushel of soybeans yields about
1.5 gal of biodiesel (19% oil)
 Price of soybeans has ranged from $10
to $14 per bu.
 The fuel value of 1 bu would range
from $6.67 to $9.33 per gallon of BD.
 If diesel cost = $4.20 it would be like
selling soybeans for $6.30/bu.
 Not a good idea!

Would canola be a good crop for
on-farm biodiesel production?
 One bushel of canola yields about 2.8
gal of biodiesel (40% oil)
 Price of canola has increased from $5
to over $10 per bu.
 If diesel cost = $4.20 it would be like
selling canola for $11.76/bu.
 In South Carolina and many other
Southern states there are few places to
market canola.

Difference in properties of Soybean
BD and Canola BD
 Canola BD has a cetane no. of 55
 Soy BD has a cetane no. of 47
 Petro D has a cetane no. of 43
 Canola BD has a lower cloud point
than soy BD so it can operate as
B100 at lower temperatures.

Canola may be a possibility
 Grown in fall/winter like wheat.
 Will work in with many common
rotations and can be double-cropped
with soybeans.
 Takes more N and S, but animal
producers have that in manure!
 In the Southeastern US we can get
yields from 30 to 70 bu per acre
depending on soil conditions and rain.

Additional considerations
 A farmer could make 112 to 140
gal BD/ac from canola
 Both would require that an on-farm
or near-by cooperative plant for
seed crushing (no solvents) and
biodiesel production.

Canola requires more N than wheat
 Canola needs about 120 lb N/ac
 About 45 lb P2O5/ac
 About 60 lb K2O/ac (Potash)
 About 10 to 25 lb S/ac (based on soil
test)
 Can work as a second crop following
soybeans in the Southeast or plant in
rotation prior to soybeans in other parts
of the country.

Estimate of Cost of Production
 Based on info from Ag Economists at
Clemson University and North Carolina
State University
 Fertilizer cost used: $0.71/lb of N, $0.61/lb
of P2O5, $0.55/lb of K2O.
 Included costs from wheat budget for lime,
herbicides, pesticides, application, planting,
harvesting, hauling, labor, interest on
operating capital.
 Also includes cost of petro diesel.

Cost to produce canola with and
without animal manure - $/acre
Fert. Manure
Seed $20.00 $20.00
N $85.20 --
P2O5 $24.40 --
K2O $33.00 --
Lime, Pest, Herb, Fung. $57.25 $57.25
All Labor & Mach. $81.00 $81.00
Interest on Op. Cap. $11.29 $11.29
Total VC $312.14 $173.54
Cost Per Bu (50 bu/ac) $6.24 $3.47

What is the canola cost per gallon
of BD?
 Get 2.8 gal BD/bu of canola
 With purchased fertilizer canola cost
is $2.23/gal biodiesel.
 If animal manure is used as sole
fertilizer canola cost is $1.24/gal
biodiesel.
 Using manure reduces canola cost by
44.4%.

What is the cost to make a gal of
canola BD?
 Current prices range from $1.00 to
$2.00 per gallon.
 Depends on cost of methanol, sodium
hydroxide, and equipment capacity
utilization.

Cost to produce canola BD with and
without animal manure
Fert. Manure
Canola Cost ($/gal) $2.23 $1.24
Cost to make the BD + Canola
Low ($1.00/gal) $3.23 $2.24
Medium ($1.50/gal) $3.73 $2.74
High ($2.00/gal) $4.23 $3.24
Note that these values do not include the value
of meal or glycerol.

Value of Canola Meal
 Price of canola meal used as cattle
feed was assumed to be $234/ton.
 Will yield about 0.75 ton meal per
acre with a value of $175.50/ac.
 At 140 gal BD/ac this would be equal
to a $1.25/gal BD credit.

Cost to produce canola Biodiesel
including meal value as a credit.
Fert. Manure
Canola Cost ($/gal) $2.23 $1.24
Meal credit ($/gal) - $1.25 - $1.25
Cost to make the BD + Canola
Low ($1.00/gal) $1.98 $0.99
Medium ($1.50/gal) $2.36 $1.49
High ($2.00/gal) $2.98 $1.99
Does not include costs for ASTM quality testing or taxes if sold.

How many acres are needed to
make 1000 gal of canola biodiesel?
At 35 bu/ac – 10.2 ac
At 40 bu/ac – 8.93 ac
At 50 bu/ac – 7.14 ac
At 60 bu/ac – 5.95 ac

Should farmers look at making
biodiesel for their own use?
1. If they do not have animal
manure – Maybe not.
2. Animal producers have the
advantage in that they produce
the needed fertilizer.
3. Need to sharpen the pencil,
manage costs and market meal.

Agricultural Mechanization &
Business
School of Agricultural, Forest, and
Environmental Sciences
Contact:
Christi Leard
864.656.3250

Using manure to reduce the cost of growing canola as a biodiesel feedstock

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Using manure to reduce the cost of growing canola as a biodiesel feedstock