HP March 2022 eBook—Energy Transition - 91

Business Trends
For example, REG has created a blend of both biodiesel and
renewable diesel (i.e., REG Ultra Clean Diesel) to capture the
best attributes of each. This fuel can reduce emissions across
the board, while offering improved engine starting, lubrication,
reliability, engine life and more complete combustion.
FIG. 1. Biomass-based diesel emissions reduction estimates.
Note: REG charts are based on California's Air Resources Board
assessments vs. U.S. federal ULSD. Source: REG.
Looking forward. As U.S. emissions standards continue to
tighten, renewable fuels will play a crucial role in the energy
transformation of the country. Utilizing the existing refining
and distribution infrastructure to fuel vehicles that require little
to no modification, renewable diesel and biodiesel have already
overcome several hurdles associated with electric vehicles
(EVs). These renewable fuels can reduce lifecycle GHG emissions
even more than EVs since EVs derive their electricity from
natural gas, which produces 195% higher GHG emissions on a
lifecycle basis than REG B100.
U.S. federal and state governments have realized the potential
benefits of biodiesel and renewable diesel and are incentivizing
the production of both. A federal blenders tax credit of $1/gal of
biomass-based diesel produced was renewed in late 2019,7
and
FIG. 2. Existing and expected U.S. renewable diesel production
capacity, 2010-2024. Source: U.S. EIA.
els regulation, which would require biodiesel blends greater
than 5% to be approved by CARB.4
To mitigate this increase in
NOx emissions, CARB has approved diesel formulations with
at least 55%-75% renewable diesel and, at most, 20% biodiesel.
Performance impacts. While most of this article has focused
on the chemistry and engineering behind using these three types
of diesel fuel, companies are already seeing the economic benefits
of switching to renewable fuels. After dismissing the biodiesel
blend B99 based on the additional fuel heater cost of $15,000/
truck, Titan Freight Systems chose a renewable diesel blend of
R99 to fuel its fleet.5
After 1 MM miles, they found R99 provided
the same fuel economy, while reducing lifecycle emissions by
66%, saving 1,217 t of carbon. In total, Titan Freight Systems
saves about $0.021/mi-$0.015/mi from reduced exhaust replacement
parts and downtime spent clearing diesel particulate
filters (DPFs), $0.005/mi from a 75% oil cost reduction, and the
remainder resulting from reducing the amount of DPFs required.
While saving only $0.021/mi may seem insignificant, more
than 3 MM Class 8 trucks were on U.S. roads in 2019, averaging
62,571 mi, according to the U.S. Department of Energy.6
had been using renewable diesel, each truck would have saved
an average of $1,317.77/yr, or $5.15 B/yr in savings across all
Class 8 trucks. In terms of emissions reductions, if all Class 8
trucks had used R99, it would have saved more than 297 MM
metric tpy of carbon dioxide (CO2
ida had the third-highest CO2
242.5 MM metric t of CO2
mation Administration.
Although renewable diesel has rapidly grown in popularity,
some blenders have started to mix the two renewable fuels.
Hydrocarbon Processing | NOVEMBER 2021 | HydrocarbonProcessing.com
If they
a new Congressional bill hopes to extend the program through
2025. The RFS-2 program offers 1.5 renewable identification
number (RIN) credits for every gallon of biomass-based diesel
produced, which includes biodiesel and renewable diesel. Renewable
diesel accounts for 1.7 RINs, while biodiesel accounts
for 1.5 RINs. Although RIN prices are market-based, they have
recently made headlines after reaching all-time highs in June.
LCFS programs also offer credits (around $177/credit in
California) based on the total tons of carbon removed compared
to a baseline carbon intensity (CI). Oregon and British
Columbia, Canada, have followed California's lead in enacting
an LCFS, with more in development in states like Minnesota,
New York and Washington.
While biodiesel and renewable diesel are both increasing in
production capacity, they still have a long way to go before they
can replace ULSD. In 2019, the U.S. consumed approximately
47.2 Bgal of diesel fuel. In the same year, renewable diesel and
biodiesel production capacity was 0.6 Bgpy and 2.514 Bgpy,
respectively. Biodiesel is clearly leading in current production
capacity; however, the U.S. EIA forecasts renewable diesel production
capacity to increase to 5.1 Bgpy in 2024 (FIG. 2).
Alternative diesel fuels like renewable diesel have proven
to be a sustainable, renewable replacement for ULSD. The increased
engine performance, emissions reductions and growing
production capacity are all steps towards a better, cleaner
future. However, with any new change comes new challenges.
Partnering with experienced energy consultants removes that
uncertainty throughout the transition and ensures that your organization
can overcome those challenges. Understanding and
capitalizing on all the available incentives is the difference between
operating at a loss and becoming an industry leader.
LITERATURE CITED
). For context, in 2018, Floremissions
in the U.S., emitting
, according to the U.S. Energy InforComplete
literature cited available online at www.HydrocarbonProcessing.com.
PATRICK O'BRIEN is an intern with Opportune LLP's
Process and Technology group. After graduating in May
with a BS degree in chemical engineering, Mr. O'Brien is
pursuing an MS degree in finance at Texas A&M University.
http://www.HydrocarbonProcessing.com http://www.HydrocarbonProcessing.com
HP March 2022 eBook—Energy Transition

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