BIODIESEL BLENDS 5 The European Union experience 5.

.5 In 1997 the European Union gave a mandate to CEN to develop standards and test methods for biodiesel as a sole diesel engine fuel (100%) and biodiesel as extender to diesel engine fuel according to the CEN diesel standard EN590. During this process it was decided to elaborate only one standard being valid for both, biodiesel as sole fuel and as a blending component to EN590 diesel fuel.29 A summary of international trends in biodiesel use is at Appendix B. This summary includes details of the types of biodiesel blends used. A brief list of some examples .of blends are given below Germany - B100 Austria - B100 or as a voluntary blend of up to B3 France - B5 predominant with some B30 in captive fleets Italy - B5 The United States experience 5.5 A significant amount of discussion within the industry has occurred regarding the concentration of biodiesel used in blends with diesel and the resulting impact on the .specification Biodiesel is completely miscible with both US Grade No.1-D and 2-D fuel. It can be used as a 100% replacement for diesel, or as a blending stock. At 2002 world market prices for crude petroleum oil and animal fats and vegetable oils, the cost of biodiesel is more than diesel. Therefore, applications for biodiesel are primarily those where it can provide value added benefits (emissions, biodegradability, lubricity, etc.) or those where it represents a cost competitive option to meet legislative initiatives (alternative fuels, greenhouse gas reduction, economic development, etc.) for which diesel is not .an option Most of the experience with biodiesel in the US has been with 20% blends of

biodiesel with 80% diesel. The market share is approximately 75% B20, 24% B5/B2 and 1% B100). This appears to be a compromise between emissions reduction and ,cost, and also minimises cold weather impacts. There are additional markets however, which are using 100% biodiesel such as in marine applications where the .biodegradability of pure biodiesel is important It is also anticipated that in the US biodiesel, when used as a blend with diesel, will most likely be produced by someone other than the seller of the finished blend. This also creates a need for a standard for pure biodiesel before blending. The standard adopted by ASTM, therefore, is for the pure (or 100%) biodiesel. The rationale is that if biodiesel conforms to the pure standard then it can be blended with diesel in any .proportion 55

BIODIESEL PARAMETERS 6 This section of the discussion paper outlines parameters for biodiesel that can potentially be specified in a biodiesel quality standard. A brief description of the parameter, its impact on vehicle emissions and engine operability, international trends .in standards for the parameter and test methods for the parameter are presented Several countries have already introduced biodiesel standards. Table 6.1 shows a selected comparison of international standards for biodiesel. This table has been compiled with the significant assistance of Steve Howell (MARC-IV) and Werner Krbitz (Austrian Biofuels Institute). Limits and test methods for prEN 14214 FAME standard are preliminary as the standard is currently being finalised. Many of the test methods included in prEN14214 were the subject of inter-laboratory testing to determine the applicability of the method and its precision in relation to different

sources of fatty acid methyl esters. The FAME samples tested were produced from .rapeseed and sunflower oils The detailed requirements for Biodiesel (B100) in the US ASTM D 6751-02 includes a caveat that, to meet special operating conditions, modifications of individual limiting requirements may be agreed upon between purchaser, seller, and manufacturer. The test methods indicated in the standard are the approved referee methods. Other acceptable methods are also listed in the standard.11 \42

Biodiesel Methodology
Click here to view a printer friendly version of this Methodology Biodiesel is the name of a clean burning alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.Tallow is also used. Rapeseed methyl ester (RME) is mainly produced in Europe; soy methyl ester (SME) comes mainly from the Americas and palm methyl ester(PME) from Asia, in particular Malaysia and Indonesia. Prices of the different products reflect their different cold filter plugging points (cfpp) with lower cfpp levels at a premium. RME will usually be sold with a guarantee of -14C cfpp, SME with -4C and PME 15C. These numbers represent the cfpp point of the product on its own rather than the overall cfpp point once blended into fossil fuel. The exact cfpp point may vary according to quality. If a product is outside of normal industry specifications then this will be mentioned in the text rather than included than used in quotes. Fatty acid methyl ester (FAME) refers to European blends of biodiesel. These blends contain different quantities of the pure vegetable and/or tallow oil methyl esters depending on the cfpp point desired. ICIS quotes prices in Europe for the three most commonly used FAME cfpp levels: 0, -5 and -10. All FAME quotes are for unadditivated material. Biodiesel contains no fossil fuel, but it can be blended at any level with petroleum diesel to create a biodiesel blend. Biodiesel is simple to use, biodegradable, non-toxic, and, if pure and unadditivated, essentially free of sulphur and aromatics. Biodiesel is made through a chemical process called transesterification whereby the glycerine is separated from the fat or vegetable oil. The process leaves behind two products methyl esters (the chemical name for biodiesel) and glycerine (a by-product usually sold to be used in soaps and other products). Biodiesel can be used as a pure fuel or blended with petroleum in any percentage. In France, 5% biodiesel is common, and this has also been introduced in the UK. Vehicle manufacturers warranties cover use with 5% biodiesel blends. 100% biodiesel must meet EU quality standard EN 14214. In Europe, the Renewable Energy Directive (RED) stipulates that renewable energy should have a minimum 10% share in transport by 2020 and that this energy should come from sustainable feedstocks. This has resulted in a greater amount of RED certified biodiesel becoming available in the market. ICIS reports cover all the relevant ongoing RED discussions at both a state and EU level. European biofuel legislation is under discussion to roll back targets after concerns that biofuel crops may be contributing to high food prices. ICIS reports cover all the relevant ongoing discussions and votes at both a state and EU level. Asian biodiesel is made mostly from palm oil and is called Palm Methyl Ester (PME). Palm oil producing countries like Malaysia and Indonesia are the main Asian biodiesel producers. The use of biodiesel has various environmental benefits. Tests have shown that the toxicity of biodiesel is lower than that of petroleum-based diesel, and that in the environment it degrades more readily.

In terms of storage, handling and distribution, biodiesel is as safe as diesel, and it has a much higher ignition point. Biodiesel can be safely stored without degrading for up to six months. To keep for longer than that stabilising additives are needed.

ICIS pricing quotes Biodiesel in Europe, Asia, the US and Argentina.

Frequency:
Published weekly on Thursdays.

Biodiesel (EUROPE)
Weekly Price Assessments:
Spot prices

RME EN14214 FOB NWE (USD/MT) RME (RED) FOB NWE (USD/MT|) FAME 0 CFPP FOB ROTTERDAM (USD/MT) FAME 0 CFPP (RED) FOB ROTTERDAM (USD/MT) FAME -5 CFPP FOB ROTTERDAM (USD/MT) FAME -10 CFPP FOB ROTTERDAM (USD/MT) PME CIF ARA T2 (USD/MT) PME CIF (RED) ARA T2 (USD/MT) SME CIF ARA T2 (USD/MT)

Biodiesel (ASIA)
Weekly Price Assessments
Spot prices

PME FOB Asia USD/MT (converted to USD/CBM)

Biodiesel (US)
Weekly Price Assessments:
Domestic spot prices in bid/offers

B100 FOB Midwest (USD/GAL) B100 FOB USG (USD/GAL) FAME 0 CFPP FOB Midwest(USD/GAL)

Biodiesel South America

Weekly Price Assessments:
Export prices in bid/offers

B100 FOB Rosario

General Information:
Assessment window: Price assessments are based on information supplied by market participants through the week up to close of business on Wednesday at 1700 hours in London, Houston and Singapore. Specifications: In Europe all prices are quoted on a T2 basis. ICIS pricing assesses rapeseed methyl ester (RME) biodiesel according to international standard EN14214. Soy methyl ester and Palm methyl are assessed according to industry standards. FAME 0, FAME -5 AND FAME -10 prices are all based on unadditivated material. In the US, there are no industry-wide standards applied to biodiesel trade. ICIS pricing quotes B100 of any feedstock. Timing: Cargoes loading or delivered within 4-6 weeks from the date of publication. Terms: 30-60 days after the bill of lading. Standard cargo size: Typically cargo sizes are 1,000-3,000 tonnes in Europe, while in Asia export cargo sizes are typically 2,000-8,000 tonnes. In the US, biodiesel is generally shipped via standard tank trucks of 45,000 lb or rail cars of 180,000 to 190,000 lb. Assessment basis: The reports contain market commentary and analysis including details of traced spot transactions, supply/demand issues, export/import information news when applicable, spot prices, contract price negotiations and general sentiment for price direction. In Europe, the price quotes reflect spot transactions for biodiesel in US dollars per tonne, including INCO terms, which vary depending on the product. The report offers price information and market trends on all mainstream grades of biodiesel. There is product information, production news, feedstock prices, comments on upstream and downstream market developments and general market intelligence including comments on European Union and individual state legislation relating to biodiesel and biofuels. In the US, prices reflect quotes for B100 and FAME 0 CFPP truck and rail cargoes in generalised areas of the US midwestern states and in Texas for soy methyl esters (SME). In both Europe and the US, the price quotes capture mostly spot parcels and parcels on offer for export. In South America, Argentina export prices for spot export volumes are quoted for current month or forward month positions. The price is calculated from the Chicago Mercantile Exchnage (CME) daily soybean crude oil price settlement and the local premium or discount. In Asia, most plants sell on European EN 14214 specifications to European buyers and to some in the US. Within Asia, the absence of mandatory regulations on biofuels means very little biodiesel is used, although small amounts are consumed in countries like Philippines, Thailand and Indonesia. 18 Jun 2012

/http://www.icis.com/energy/biodiesel/price-reporting-methodology