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Energizing ArkansasEnergizing Arkansas
Summer 2009
Volume 1 Issue 4

Drawing of a printerPrinter Friendly Version

The Lifecycle of Commercial Biodiesel Production Arkansas Dealership Electrifies the Transportation Sector Public PolicyCompressed Natural Gas A Viable Alternative Fuel in Natural Gas-Rich State • Trend WatchMark Your Calendar

The Lifecycle of Commercial Biodiesel Production

Picture of cows feeding a troughFeedstocks.
Feedstocks used in the production of biodiesel can include plant oils such as soybean, cottonseed and canola oils; recycled cooking greases and oils; or animal fats such as beef tallow and pork lard. The single largest cost driver in the commercial production of biodiesel is the price of the feedstock, which can account for more than 80 percent of the total production expense. A mere three years ago, between 75 and 90 percent of U.S. biodiesel production used soybean oil, but as soybean prices soared, commercial producers had to find alternative feedstocks, such as beef tallow.

Production.
Picture of a biodiesel dryerThe process of making biodiesel is known as transesterification. The procedure involves combining the feedstock with alcohol and a catalyst. The catalyst can be a strong acid or base. Sodium hydroxide is the most commonly used catalyst, which is mixed with the alcohol - typically methanol - before mixing it with the feedstock. For example, 100 pounds of soybean oil would be mixed with 10 pounds of methanol and the catalyst. This would produce approximately 100 pounds of biodiesel (roughly 13.5 gallons) and 10 pounds of crude glycerin, a byproduct of the process.

The biodiesel must be cleaned to remove glycerin, unreacted oils, fatty acids, spent catalyst and other impurities. A measure of the effectiveness of the transesterification process is the amount of unreacted oil left in the solution. One hundred percent reaction should be the goal of every producer.

Quality.
Picture of a biodiesel labFuel-grade biodiesel must be produced to strict industry specifications developed by the American Society for Testing and Materials (ASTM) and registered with the U.S. Environmental Protection Agency (EPA) as a legal motor fuel for sale and distribution. ASTM's D6751 set of standards establishes a minimum level of quality so that the producers and users of biodiesel know what to expect from the product. They also provide equipment manufacturers with a way to determine how the fuel will affect the performance and lifespan of their products. The standards are not based on the feedstock used or the manufacturing process; rather, the finished blend stock must meet certain physical and chemical property limits. Biodiesel facilities must have their biodiesel tested by ASTM-certified laboratories, the closest of which are located in Tennessee and Missouri.

Consumption.
Picture of a biodiesel pump.According to the National Biodiesel Board (NBB), the trade association for the US biodiesel industry, 2008 was a record year for biodiesel in the U.S., with nearly 700 million gallons produced, though more than half was exported. B20 is the most commonly used blend in the country because it provides a good balance between material compatibility, cold weather operability, performance, emission benefits and cost. There are several sources for locating biodiesel stations across the state. The Arkansas Farm Bureau maintains a list on its website at www.arfb.com/commodity_marketing/biodiesel/ as does the U.S. Department of Energy at www.afdc.energy.gov/stations/.

Blending.
Picture of jars of biodieselA number following the "B" indicates the percentage of biodiesel in a gallon of diesel fuel. At concentrations of up to five percent (B5), the mixture can be used in any application as if it were pure petroleum diesel. A concentration of 20 percent (B20) biodiesel can be used in many applications that use diesel fuel with minor or no modifications to the equipment, although some manufacturers do not extend warranty coverage for biodiesel above B5. Pure biodiesel is known as B100 and can be used as a fuel, but it requires special handling and may require equipment modifications.

Handling & Distribution.
Picture of biodiesel storage tanksAfter the biodiesel process is complete, the fuel is stored in tanks. Most tanks designed to store petroleum diesel will store biodiesel without any alterations. Regardless of the distribution method, it is essential that biodiesel does not drop below its cloud point, or the temperature at which the fuel maintains operability. Biodiesel leaves the production facility in one of three primary modes: barges, railcars or trucks. Biodiesel destined for local use will generally be shipped by truck to either one of the 11 petroleum distribution terminals in the state or to the 186 petroleum bulk plants or jobbers across Arkansas. It is possible to transport biodiesel directly to the end customer if there is storage space capable of taking a full load, which is 7,000 gallons. Biodiesel destined for regional use can go out by rail or transport. Trucks are economical within a 350-mile radius of a plant. Beyond that, rail is more economical. A barge, which can move 400,000 gallons of biodiesel may be necessary for delivery to coastal facilities. Very soon, large petroleum customers will start buying biodiesel for delivery to pipeline access points for blend injection into the pipeline diesel fuel supply.

Commercial-grade biodiesel is a federally recognized non-toxic alternative transportation fuel that can be used as a replacement for diesel. It is an energy-efficient option for decreasing the nation's dependence on foreign oil while reducing harmful air emissions.

 


Arkansas Dealership Electrifies the Transportation Sector

Picture of a Martin Limited scooter.
The Martin Limited scooter, available through ETA, has a powerful 3000 watt motor and can climb steep hills. With no gears to shift and no transmission, it's easy to maintain and can be licensed in any state.

Spot an electric car zipping around the state - which is becoming increasingly more common - and chances are it came from Electric Transportation of Arkansas (ETA), the state's only all electric and solar vehicle dealership. Since opening in February 2008, co-owners John Akins and David Bevins have seen a steady stream of interest in their products. From scooters, carts, trucks and cars, ETA sells more than 30 types of electric vehicles at its 3,200-square-foot showroom in downtown Little Rock, Ark., as well as on E-Bay.

ETA features an impressive line of Zap electric vehicles, including the Xebra, a three-wheeled car that has a range of 25 miles on a full charge and can go up to 40 miles an hour. Zap also manufactures an electric truck with a load capacity of 500 pounds. Additionally, there is an affordable option for the Xebras – solar panels that make it possible to re-charge the batteries directly from the sun.

Electric vehicles have many benefits. They have no tailpipe emissions, thus produce very little air pollution. According to Zap, driving an electric vehicle 12,000 miles can displace up to 10,000 lbs. of CO2 a year. Home recharging of electric vehicles is as simple as plugging them into an electric outlet. Electricity fueling costs for electric vehicles are reasonable compared to gasoline, especially if consumers take advantage of off-peak rates. The cost to drive an electric car ranges from one to three cents a mile.

In 2009, the Arkansas General Assembly enacted the Electric Autocycle Act. This law allows three-wheeled electric vehicles to operate on any street with a speed limit of 55-mph or below. "I have an electric scooter, and it's perfect for getting wherever I need to go in Little Rock, and the city is laid out in such a way that I can get from one side of town to the other easily without having to take major detours," said Stephanie Jones, an ETA employee.

 

An Alternative Fuel Vehicle (AFV) is any dedicated, flexible-fuel, or dual-fuel vehicle designed to operate on at least one alternative fuel. Alternative fuels include methanol, denatured ethanol, and other alcohols; mixtures containing 85 percent or more by volume of methanol, denatured ethanol, and other alcohols with gasoline or other fuels; natural gas; liquefied petroleum gas; hydrogen; coal-derived liquid fuels; non-alcohol fuels (such as biodiesel) derived from biological material; and electricity.

- Department of Energy

 


Public Policy

Picture of a parking lot full of alternative fuel cars.Alternative fuel vehicles, including hybrids and electric vehicles, reduce energy consumption and gaseous emissions compared to conventional vehicles. Despite these advantages, purchasing such a vehicle has historically been too cost prohibitive for mainstream consumers. However, as manufacturers produce a wider range of affordable vehicles and the federal government creates incentives for purchasing clean, energy-efficient cars and trucks, it appears the market is beginning to take off.

The American Recovery and Reinvestment Act of 2009 provides a tax credit for plug-in electric drive vehicles purchased after Dec. 31, 2009. To qualify, vehicles must be newly purchased, have four or more wheels, have a gross vehicle weight rating of less than 14,000 pounds and draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity. The value of the credit depends on the battery capacity of the qualified plug-in electric drive vehicle and can range from $2,500 to $7,500. Additionally, the value of the credit will slowly decline as the program is phased out before expiring December 31, 2014.

The plug-in electric vehicle incentive creates a special tax credit for two types of plug-in vehicles: certain low-speed electric vehicles and two- or three-wheeled vehicles. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after February 17, 2009, and before January 1, 2012.

Hybrid Electric Vehicles (HEVs) can be used in heavy-duty applications such as transit buses and forklift trucks. The most common HEVs are diesel hybrid electric vehicles which are well suited for stop-and-go traffic. The heavy-duty hybrid electric vehicle (HEV) incentive provides a tax credit of up to $18,000 for the purchase of qualified heavy-duty HEVs with a gross vehicle weight rating of more than 8,500 pounds. The tax credit expires the end of this year.

The alternative fuel infrastructure tax credit is designed to offset the cost of installing alternative fueling equipment placed into service after December 31, 2005. Qualified alternative fuels are natural gas, liquefied petroleum gas, hydrogen, electricity, E85 or diesel fuel blends containing a minimum of 20 percent biodiesel. The credit amount is up to 50 percent, not to exceed $50,000, for equipment placed into service on or after January 1, 2009. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchase residential fueling equipment may receive a tax credit of up to $1,000.

A tax credit is available toward the purchase of qualified alternative fuel motor vehicles, which may be either new, original equipment manufacturer vehicles or vehicles that have been repowered by an aftermarket conversion company to operate on an alternative fuel. Qualifying alternative fuels are those powered by natural gas, liquefied petroleum gas, hydrogen and fuel containing at least 85 percent methanol. This tax credit expires December 31, 2010.

For more information on these and other federal alternative fuels incentives, go to www.afdc.energy.gov/afdc/incentives_laws.html.


Compressed Natural Gas A Viable Alternative Fuel in Natural Gas-Rich State

Natural gas - the very same gas that powers stoves and dryers - can be compressed and used as a substitute for conventional transportation fuels. Almost 98 percent of the natural gas used in the U.S. is produced in North America, and production has increased by more than 50 percent over the last few years, driven in large part by discoveries of new gas fields such as Arkansas' Fayetteville Shale Play.

Compared with vehicles fueled by conventional diesel and gasoline, compressed natural gas (CNG) produces significantly lower amounts of harmful emissions and greenhouse gases. Additionally, natural gas provides an immediate option for reducing the nation's dependence on foreign oil. "Right under our feet is an answer to our energy problems, and yet we, as a state, have done nothing," said an owner of two CNG vehicles who wished to remain anonymous.

Picture of a pickup truck bed with fuel storage.
CNG vehicles require a greater amount of space for fuel storage than conventional vehicles. The tanks used to store the CNG usually take up additional space in the bed of a pickup truck or the trunk of a car. In newer, factory-built CNG vehicles, the tanks are installed under the body.

There has actually been activity in the area of CNG around the state for more than 25 years. Between 1982 and 1986, the Arkansas Oklahoma Gas Corporation (AOG), which serves customers around the Fort Smith, Ark. area, converted more than half of its fleet to operate on CNG. However, by the 1990s, a lack of advancement in CNG technology combined with new Environmental Protection Agency certification requirements hindered the company's ability to convert vehicles. CNG technology continued to improve and in 2004, there were more than 130,000 CNG vehicles across the country. That same year, the Arkansas Energy Office of the Arkansas Economic Development Commission awarded the Little Rock National Airport, Adams Field, a $172,000 grant, which combined with a grant from Centerpoint Energy, paid for the cost of building a fueling station as well as purchasing CNG vehicles.

While interest in CNG as an alternative transportation fuel did not take off in Arkansas as it did in surrounding states such as Oklahoma and Texas, there appears to be increased attention in both the public and private sectors in CNG. Chesapeake Energy, the second largest leaseholder in the Fayetteville Shale Play with 440,000 net acres, is stepping up its promotion of natural gas as an alternative fuel. Its Little Rock, Ark.-based office co-hosted a Natural Gas Vehicle Workshop in May that was attended by more than 100 people. Chesapeake is also collaborating with students from Cabot High School to retrofit a vehicle to operate on CNG and is meeting with businesses across the state to discuss the benefits of CNG.

Dave McMahen of Russellville, Ark., is representing an investor group interested in building public fueling stations in the state. "We conducted a survey targeted to companies with fleets, government officials and community leaders. The awareness and desire is tremendous," McMahen explained. In spite of this, there are currently only three private CNG fueling stations in Arkansas. Meanwhile, AOG has continued to maintain a fleet of CNG vehicles. The airport's original CNG vehicles are still in service and they have continued to either purchase CNG vehicles or those converted to run on CNG. "On average, CNG is $1 a gallon less expensive than diesel or gas, so that's a huge savings for the airport," said Pat Sellars, the airport's fleet manager. "And, the CNG vehicles don't require a lot of maintenance. We are very pleased with our CNG fleet."

Picture of pressure guages.Natural gas is compressed to pressures above 3,100 pounds per square inch for use as a transportation fuel. One of Arkansas' three private CNG fueling stations is located at the Little Rock National Airport, which has been using CNG vehicles since 2004.

 

 

"Natural gas provides an immediate option for reducing our nation's dependence on foreign oil. Right under our feet is an answer to our energy problems."

 


Trend Watch

Program Provides Public with Ozone Alerts. Ground-level ozone air pollution, the primary ingredient in urban smog, is becoming increasingly problematic in Arkansas' suburbs and rural areas. Since 1998, the state has implemented the Central Arkansas Ozone Action Day Program to increase awareness of ozone-related health risks and educate the public on how to reduce ozone emissions. During the ozone season, which runs from May 1 through September 30, the Arkansas Department of Environmental Quality's Air Division provides daily ozone forecasts. To receive these daily ozone forecasts, register at www.ozoneactiondays.org.

State Receives Recovery Funding. The Arkansas Economic Development Commission (AEDC) will receive $39.4 million to support 13 energy projects. Approved by the U.S. Department of Energy, the projects include a Tall Towers Wind Measurement Study, the development of an Arkansas Industry Clearinghouse and a program that provides Advanced Lighting Technology for Poultry Growers. The Arkansas Energy Office of the AEDC will administer the projects. Funding will be provided through the American Recovery and Reinvestment Act of 2009. To see the full list of projects go to www.arkansasenergy.org.

State Receives Grant for Clean Diesel Program. The Arkansas Department of Environmental Quality was recently awarded $1.73 million grant by the U.S. Environmental Protection Agency to assist businesses and organizations in reducing diesel emissions. The program can be used for retrofits and engine upgrades or equipment replacement. The clean diesel projects will create jobs while protecting air quality. Another goal is to reduce premature deaths, asthma attacks and other respiratory ailments caused by harmful air emissions.

Clean Cities Coalition Transferred to Winrock International. In February 2009, Winrock International took over the Central Arkansas Clean Cities Coalition, expanding the program's reach across the state and renaming the program the Arkansas Clean Cities Coalition. The Coalition's main goals are to bring together stakeholders and educate citizens on the importance of alternative fuels and vehicles and idle reduction technologies. Toward this end, the Coalition has convened planning meetings, started discussions about new projects and developed grant applications to support current and emerging projects. To learn more, go to www.arcleancities.org.


Mark Your Calendar

Certified Energy Manager Training

November 9 - 13, 2009 • Little Rock, Arkansas

Sponsored by Energy Efficiency Arkansas (EEA), this comprehensive five-day program will cover the full scope of technical, economic and regulatory components of effective energy management. The training is designed for energy managers and other professionals who can benefit from in-depth exposure to areas such as analyzing energy bills, understanding energy rate structures, conducting economic analysis or applying cost-effective technologies that can have a real impact on the bottom line. An optional Certified Energy Manager examination will be administered at the conclusion of the program. To encourage participation, EEA will pay for half of the registration fee. For more information, call (888) 524-4567.

Site Tour and Presentation - Stitt Energy Systems, Inc. Building

November 17, 2009 • Rogers, Arkansas

The USGBC - Arkansas Chapter - Western Branch will tour the new Stitt Energy Systems, Inc. building. The company received the City of Rogers 2009 Commercial Development of the Year Award, in recognition of the significant renovation and addition to one of its office buildings. The company moved into the LEED® registered building in early February. For more information, e-mail info@usgbc-wbac.org .


Energizing Arkansas is a joint education project of the Arkansas Energy Office of the Arkansas Economic Development Commission and the University of Arkansas Division of Agriculture Public Policy Center. The goal of this newsletter is to provide timely, informative articles on the development of energy efficiency, renewable energy and energy policy in Arkansas. Each issue of Energizing Arkansas will explore new research and technology in the bioenergy sector, examine the economic, environmental and policy impacts of bioenergy and spotlight people and organizations leading the pack in sustainable, renewable energy.

Electronic versions of the newsletter as well as an accompanying video clip highlighting one of the stories featured in each issue may be accessed at www.arkansasenergy.org or at ppc.uaex.edu. E-mail your questions or comments to energizingarkansas@uaex.edu.

 

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