Biodiesel in USA and Brazil 1 Biodiesel in USA and Brazil Aastha Sinha Purdue University BIODIESEL 2 Abstract The main goal of the paper is to give an overview of biodiesel and a in depth look at the production

Biodiesel in USA and Brazil 1

Biodiesel in USA and Brazil

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Aastha Sinha
Purdue University

BIODIESEL 2
Abstract

The main goal of the paper is to give an overview of biodiesel and a in depth look at the
production, price and economic impact of the fuel in Brazil and the United States. Those two
countries are the world ‘s largest producers of biofuels. The paper begins by giving a brief
introduction to biodiesel and its history and usage in the world. The second part of the paper
deals with biodiesel in Brazil. and that is followed by biodiesel and it ‘s impacts in the United
Statements. The pap er concludes with talks about the future of biodiesel in the world.
Keywords: Biodiesel, Brazil, USA

Biodiesel in USA and Brazil
What is biodiesel?
Biodiesel is a long chain of alkyl esters fatty acids derived from renewable biological sources
such as vegetable oils and animal fats and recycled cooking oils, which can be used as a
substitute for petroleum -based fuel in diesel en gines. Biodiesel contains no petroleum, but it can
be blende d w ith petroleum diesel in any percentage to create biodiesel blend s. In chemist ry
terms, biodiesel is fatty acid methyl esters and they are called biodiesel only when used as fuel in
diesel engine s and heating systems. It is one of different types of biofuels in the world others
being eth anol and biogas. I t is the fastest growing biofuels in the world because it is
biodegradable and low greenhouse gas em issions.

Historical Background
The diesel engine was d evelo ped in the 1890s by inventor Rudolph Diesel to provide a n alternate
to the popular yet inept steam engines . It works on the principal of compression ignition. As the
fuel enters the cylinder it self -ignites and burns rapidly, forcing the piston back down and
converting the chemical energy in the fuel into mechanical energy.
For most of the 20 th century petrochemical diesel was used to power the diesel engine, however
World War II led to a n interest in using vegetable oils to fuel diesel engines , due to large increase
in petroleum prices. But the old engines couldn ‘t work with this alternate fuel, since they aren ‘t
designed for it and the use of biodiesel didn ‘t take off. Though this interest resulted in a lot of
research and in 1937 a Belgian sci entist, G. Chavanne devised a process to extract ethyl ester
from palm oil and this process created a product that was very close to modern biodiesel. The oil
crisis the 70’ s also pushed for more research in alternatives to petroleum. However, biodiesel
wa sn ‘t popular until the early 19 90′ s when concerns over the environment, energy security, and
agricultural overproduction once again brought the use of vegetable oils to the forefront. By the
early 2000’ s, biodiesel quickly become one of the fastest growing alternative fuels in the world,
due to its clean emissions profile and ease of use.
Production
Biodiesel is produced straight from natural oils and fats. The entire process used to convert these
natural oils to biodiesel is called transesterification. In the transesterification process a glyceride
reacts with an alcohol in the presence of a catalyst forming fatty acid alkyl esters and an alcohol
Fukuda, 2001. A triglyceride has a glycerin molecule as its base with three long chain fatty

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acids attached. The characteristics of the biodiesel are determined by the nature of the fatty acids
attached to the glycerin. During the process, the triglyceride reacts with alcohol in the presence
of a catalyst, usually a strong alkaline like sodium hydroxide. In most production, methanol or
ethanol is the alcohol used and is catalyzed by either potassium or sodium hydroxide.
The figure below shows the reaction a triglyceride (fat/oil) with an alcohol to form methyl ester
(biodiesel) and glycerol. The first step is t he conversion of triglycerides to diglycerides, which is
followed by the conversion of diglycerides to monoglycerides and then to glycerol, resulting in
one methyl ester molecule from each glyceride at each step.

Source: www.esru.strath.ac.uk/EandE/Web_sites/02 -03/biofuels/what_biodiesel.htm

Environmental Benefits of Biodiesel
Biodiesel are a great alternative to other petroleum products because of many reasons. One of
them is that it produces less greenhouse gas emissions as compared to petroleum diesel. An
analysis completed by Argonne National Laboratory found that B100 use reduces carbon dioxide
emissions by 74% when compared with petroleum diesel. The Califo rnia Air Resources Board
(CARB) reported similar values from various sources for its life cycle analysis of biodiesel.
Another great benefit of biodiesel is that causes far less damage than petroleum diesel if released
to the environment and is less combu stible. The flashpoint for biodiesel is higher than 130°C,
where is it is 52°C for petroleum diesel. This makes biodiesel safer to handle and transport. The
third benefit is that biodiesel is also produced from waste products and renewable sources.
Economi c benefits of Biodiesel
The biodiesel industry has contribut ed great ly to the domestic economy of producer countries .
Since it is domestically made, it also helps lo wer the impo rts of petroleum -based diesels and also
decrease dependency on fossil fuels. At the same time, it helps creat e livelihood for a bunch of
farmers and creates jobs for people to work in its industry . Using domestic product s is always
good fo r the economy of a country. Countries producing excess bio diesel can also benefit from
export.

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Curren t usages of biodiesel
Today, biodiesel is mainly used in the transportation industry. Any vehicle that operates on
diesel fuel can use biodiesel , so most trucks and cars in the world can run on biodiesel. Low –
level biodiesel blends like B2 and B5 are popu lar fuels in the trucking industry because of
excellent lubricating properties, so the blends can benefit engine performance. Usage outside the
transportation industry are basically also replacements for petroleum diesel. Biodiesels can also
be used as hea ting oils . Also, d ue to its solvent properties is can be used to treat oil spills in a
more environmentally friendly way Y.F, 2015.
An i ncrease in the use of biodiesel fuel is projected in the coming years.
Global change in Biodiesel use in the recent y ears
The demand for biofuels has increased drastically in the last decade due to environmental
concerns. P olicies of the European Union and other countries of the world are changing to
increase the reliance in biofuels. Examples of such policies include th e Renewable Energy
Directive in the European Union, that requires the EU to fulfil at least 20% of its total energy
needs with renewables by 2020 and all EU countries must also ensure that at least 10% of their
transport fuels come from renewable sources b y 2020 . Other countries like Brazil, China and US
have introduced blending mandates to lessen dependency on fossil fuels . These reforms are
expected to increase biofuel (including biodiesel) demands globally.
Today, the United States and Brazil are the top biodiesel producers in the world. This paper
attempts to give a concise summary of biodiesel in these two countries .
Biodiesel in Brazil
Brazil’s Biodiesel Policies
Brazil first started to invest in research to find and dev elop alternative and renewable fuels in the
1930’s. During that time, it was a pioneer in biodiesel research. Later, during the oil crisis , the
government began a program called PROALCOOL , which regulated the use of hydrated ethanol
as fuel and asked for anhydrous ethanol that could be blended with petroleum gasoline.
Unfortunately, after the drop of petroleum prices in the international market, this program was
abandoned in 1986.
In the early 2000’s Brazil again began its discussion on the use of biodiesel , and many studies
were done in the country. In 2002, a different method to co nvert called ethonolysis of vegetable
oils was considered as the main route to a petroleum diesel substitution program called
PROBIODIESEL. From then on, the country has continuously made efforts to increase biofuel
use and decrease petroleum dependency. Today, Brazil has aggressive policies to promote the
use of renewable fuels. The important policies in the country that paved the path for today’s
policies include the National Biodiesel Production and Use Program (P NPB) , the was started in
2004, to increase the acceptance of biodiesel.

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In 2005, another law was passed that mandated a minimum 5% biodiesel by 2013. These
requirements were constantly changed over the consequent years and by September 2014, the
biodiesel mandate rose to 6%. Brazil also joined the Paris Accords in 2016. As of March 2018,
Brazil increase d the volume of biodiesel blended with diesel sold at the pump to 10%. The
government is also work ing to increase the country’s biofuels output and decrease oil -product
imports.
Production and Consumption
Brazil’s Biodiesel production is regulated by its government very closely . Its biodiesel
production has been on a constant raise since 2015. The t otal Brazilian biodiesel production for
2018 is projected at 5 billion liters, because of the increase of the biodiesel blend to 10 percent
(B10) in March 2018 . Since, soybean is most prominent agricult ural product of Brazil, so even
though it feature s low oil content, it is the most use raw material in the producti on of biodiesel
fuel Cremonez, 2014. According the Petroleum, Natural Gas and Biofuels National Agency
(ANP), a round 70 percent of biodiesel produced is made from soybean oil, and 17 percent is
made from animal fat .
Brazilian Biodiesel Monthly Productio n/Deliveries (000 liters)
Month 2013 2014 2015 2016 2017 2018
January 226,505 245,215 319,546 271,388 255,361 337,818
February 205,738 240,529 303,594 300,065 259,812 338,420
March 230,752 271,839 322,692 323,158 335,069 452,310
April 253,591 253,224 324,526 348,485 347,603 446,164
May 245,934 242,526 33 8,851 328,814 369,316 383,126
June 236,441 251,517 322,185 292,772 359,236 466,918
July 260,671 302,971 341,094 337,435 387,236
August 247,610 314,532 344,038 327,183 399,997
September 252,714 312,665 330,388 313,309 398,707
October 277,992 321,603 359,166 341,024 409,344
November 265,176 316,627 324,662 321,560 386,941
December 214,364 348,962 306,526 296,145 382,671
Total 2,917,488 3,422,210 3,937,269 3,801,339 4,291,294 2,424,755
Sou rce: ANP.

The consumption of biodiesel in brazil has two main factors, the mandatory ble nd and the GDP
of the count ry. In 2017, the consumption of the fuel was 4.3 liters. Brazil has kept up the PNPB
requir ements fairly well, and this is the reason the consumption of biofuels in general in the
country has been so high.

Price
Biodiesel prices received by producers in Brazil are set by a public auction system . As of
January 2018, the average price of biodiesel was around USD 735/ton.

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Export and Import
The export of biodiesel is Brazil is fair ly less compare d to it s production, because most biod iesel
is used domestically. Brazil o nly exported 2.31metri c tons of biodiesel in 2017, according to the
APN. Due to it s high biodiesel production, Brazil imports no biodiesel. This is because the
PNPB requires tha t only domestically produced biodiesel is to be used in auction.

Biodiesel in the United States
USA ‘s Biodiesel Policies
Like in the case of Brazil, research into alternative energy sources was sparked by the oil cr isis in
19 70 ‘s. Howev er, like mo st of the wo rld, United States started to take biofuels seriously in the
beginning of 21 st century .
The government of the United states has ma de ma ny efforts to promote the use of alternative
sources of energy. The policies have evolved from subsidization to mandate and due to this t he
production of biofuels has dramatically increased . In 2004, the Biodiesel tax credit was
established , which give co nsumers a $1/gallon credit . More over, ma ny different policies are
currently being implemented to promote bioenergy, including the Energy Policy Act of 2005, the
Energy Independence and Security Act of 2007, the 2002 Farm Bill and the Biomass Research
and Development Act of 2000 .
Production and Co nsumption
The production of biodiesel in the United States has also been on a steady raise , as was the case
with Brazil. USA is the largest producer of biodiesel in the world . Biofuel production in the
States uses c orn and soybean as it ‘s main feedstock.
The biodiesel industry has commercial production facilities everywhere in the country . The
industry reached a key milestone in 2011 when it crossed the one -billion -gallon production mark
for the first time. In 2016 the market was a record high 2.8 billion gallons, according to EPA
(Environmental Protection Agency ) figures. The industry’s total production continues to
significantly exceed the biodiesel requirement under the Federal Renewable Fuel Standard and
has been enough to fill the majority of the Advanced Biofuel requirement. As an added benefit,
the industry supported about 64,000 jobs nationwide.
The consumption of the fuel in United States as also be en on a raise steadily. And according to
EPA, in 2017, the total volume of biodiesel came to 1.96 billion gallons.

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Source: EIA Monthly Energy Review , Table 10. 4
Price
The price of biodiesel in USA is dependent on the price o f soybean . As of October 2018 , the
price of biodiesel was 1 .24k per ton acc ording to Neste.
Import and Export
The United States imports biodie sel from countries like Argentina and Indonesia since
production is n’t enough to meet domestic consumption. United States does not export si gnificant
amount of biodiesel.
Conclusio n
To conclude this paper , I would like to say that biodiesel production is just going to increase
worldwide and because of it ‘s ma ny benefits, it is g oing to become one of the major fuels in the
world. Both the cases (USA and Brazil ), have shown as tha t biodiesel shoul d regulated by the
government and the use of biofuels enforced.
The futu re of biodiesel s is very bright and t he uses of this environment ally friendly fuel is sure to
increase.

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Bibliography
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Talks about the production of biodiesel in brazil.

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This entire website provided a lot of important recent data information on brazil and it’s
biodiesel production , consumption etc.

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This website gives a easy to understand list of benefits of biodiesel.

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This book helped me understand biofuels in general as well as the situation with biofuel
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Explains how oil and fats are turned into biodiesel.

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Talks about how biodiesel can help in treating oil spills, I use this to explain one of the
uses of biodiesel.

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Gives the history and policies of biodiesel in brazil.

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Talks about polices on biofuel and how they aren’t the best for development.

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Helped me understand the policies of biofuels/biodiesel in Brazil.

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Talks about what biodiesel is and how it is produced