Pure Plant Oil

Is this a superior biofuel?

Ben Murphy / Jamie Onslow

Elsbett AG and Verdant Fuel Ltd

5th November 2008

Principal criteria for Biofuels

• Significant well-to-wheel CO2 reduction

• Environmental sustainability

• Social sustainability

• Worthwhile volumes

How do the main biofuels measure up?

Well-to-wheel CO2 savings

Source: RFA May / June monthly report 2008

Most of the volume is in low CO2 performance feedstock

Source: RFA May / June monthly report 2008

Environmental and social sustainability

Environmental

• Less than 30% of biofuels are meeting environmental standards. This may

improve but the high proportion of soy feedstock creates the potential for

destructive tropical land use change.

• Long supply chains, especially from beyond Europe, will make

environmental monitoring more difficult.

Social

• Social impacts are hard to judge but tropical cultivation associated with land

use change has potential to create social concerns.

• Soy oil yields per hectare are relatively low so larger areas are required for

the same quantity of fuel.

Available volumes

• Biofuels are similar to renewable power in that no single source can replace

all our fossil fuel use. But diversification of different energy sources creates

its own security.

• Biofuel feedstocks are finite and cannot fully replace fossil fuels.

Scarce biofuel feedstocks should be used

in the most CO2 efficient way.

Biodiesel production

Farming

Extraction

or

Crushing

Transesterification

Modify the oil

To suit the engine

But Transesterification has a

footprint of 470 grms CO2e per litre

VPO production

Farming

Extraction

or

Crushing

Modify the engine to suit the plant oil

• No chemical processing

• No additives

• The CO2e of the

conversion is recovered

within 70 litres of fuel

VPO – virgin plant oil

Unused pure plant oil

• Pure natural oil – no additives

• Rapeseed is preferred

• Sunflower, Jatropha are also good

• Soy oil causes engine damage long term

• Recycled UCO (cooking oil) is not suitable

• DIN 51605 is the minimum spec

Rapeseed Oil Fuel Standard

V DIN 51 605

Parameter Method Specification Unit

Density (15°C) DIN EN ISO

121185 900-930 kg/m3

Flash point DIN EN ISO

2719 min. 220 °C

Kin. viscosity(40°C) DIN EN ISO

3104 max. 36 mm2/s

Calorific value, lower DIN 51 900-2 min. 36000 kJ/kg

Cetane number IP 498 min. 39 -

Carbon residue DIN EN ISO

10370 max. 0.40 %(m/m)

Iodine value DIN EN 14111 95-125 g Iodine/100g

Sulphur content DIN EN ISO

20884 max. 10 mg/kg

Variable Properties

Total contaminates DIN EN 12662 max. 24 mg/kg

Acid value DIN EN 14104 max. 2 mg KOH/g

Oxidation stability

110°C DIN EN 14112 min. 6 h

Phosphorus content DIN EN 14107 max. 12 mg/kg

Earth alkali (Ca+Mg) E DIN EN 14538 max. 20 mg/kg

Ash content DIN EN ISO

6245 max. 0.01 %(m/m)

Water content DIN EN ISO

12937 max 750 mg/kg

VPO - UK farm produced fuel CO2 savings

Rapeoil 0.87 kgs CO2e/litre

Diesel 3.1 kgs CO2e/litre

Rapeoil 72% saving

• Assessed by leading

carbon management

experts

• Based on real farm data

Transport

2%

NOx

emissions

from

Fertiliser

46%

Energy in

Fertiliser

and

pesticide

production

30%

Extraction

process

17%

Farming

fuel

5%

How does VPO compare for CO2 savings?

• CO2 savings can be doubled by using VPO instead of rapeseed biodiesel

• VPO offers larger volumes and more reliable supply than waste feedstocks

RFA monthly reports May/June

Blended Biodiesel or VPO?

A truck running on VPO

• 40,000 litres of fuel with 90%

VPO = 36,000 litres

• 36,000 litres of VPO saving 2.25

Kg CO2e / litre =

81 Mt CO2

VPO is guaranteed to contain

no palm oil or soy oil and no

chemical additives.

A truck running on biodiesel

B5

• 40,000 litres of fuel = 2,000 litres of

biodiesel.

• 2,000 litres of biodiesel saving 1.25

Kg CO2e / litre =

2.5 Mt CO2

Historical background to VPO

• Rudolf Diesel and peanut oil

• The modern diesel engine is developed for EN590

• Rapid improvements in emissions limits and diesel engine performance are

based on EN590.

• OEM standards of reliability on a different fuel cannot be achieved without

years of operating experience and world class engine design expertise.

Plant oil diesel engines since 1973

• The famous Elsbett engine

• The first small diesel engine

• 1.4 litre, 3 cyl, Tdi

• Compare this to today’s VW Polo Blue Motion

• The Elsbett engine was multifuel

• Many thousands of diesel engines converted to run on

plant oil.

• Elsbett continues to develop pioneering technology.

Commercial vehicles

• Approximately 2000 converted HGVs and vans

• Over 100 million kms annually

• Insured warranty on new trucks

• Euro V compliant

Agriculture, Construction and heavy plant

• Hundreds of tractors, earthmoving equipment

• Gensets

• Even boats and trains

Passenger cars

• Several thousand cars worldwide

• 2 tank systems

• Elsbett’s unique one tank system

• Ultra-low CO2 Elsbett cars

• Running on Verdant fuel

• Insured warranty for new cars

40 grms (net) / km

VW Polo with Elsbett Technology and VPO

• Single tank technology no

electronic switching

• Official TÜV emissions tests

• EU homologated, Euro IV

• Full 3 yr insured warranty

• 600 mile range; multi-fuel

• Price similar to Polo Blue Motion

CO2e 50 grms net / km

How does this compare with

an electric car?

• For range

• For price

• For CO2e

• What is the well-to-wheel

analysis of an electric car?

King Report

• Electric vehicle

emissions depend on

power source

• Range of 30grms /

km to 80 grms / km

VPO – Environmental impact

• Rapeseed is not grown in tropical regions. It does not contribute to deforestation.

VPO – Environmental and social impact

• Rapeseed is grown in rotation with cereals as part of the

normal agricultural rotation

• Typical rotation is 1 year in 4.

• Rapeseed does require fertiliser but this is accounted for

in the well-to-wheel CO2e impact

• Rapeseed as a break crop helps to control weeds and

restore cereal yields

• Consecutive wheat cultivation loses about 10%

yield per year. Yields can be maintained with more

fertiliser which create more NOx emissions.

• Approximately 80% of the plant remains in the soil and

restores organic content.

• In a sustainable rotation with cereals, rapeseed helps to

maintain long term food yields.

VPO – the food vs fuel debate

• Rapeseed is not an essential food. People do not starve for the lack

of rapeseed oil.

• Are we growing rapeseed where we could grow food? Rapeseed in

sensible agricultural rotation helps maintain cereal food yields in the

long term.

• 1 litre of rapeseed also produces 2kg of animal feed which helps

food production.

• Using rapeseed for fuel does not materially increase demand for

other plant oils. Rapeseed is generally more expensive than other

plant oils so these have already substituted for rapeseed where this is

possible.

• In Europe, approximately 60% of rapeseed oil goes for biodiesel.

Oil for food is not restricted by supply.

Fried fish and chips or grilled fish, mashed potatoes

and some transport fuel.

=

+

VPO engine performance

Calorific value / litre

Diesel 35.7 MJ 100%

VPO 34.3 MJ 96%

Biodiesel 32.8 MJ 92%

• VPO has lower calorific value

than diesel.

• But the oxygen in the VPO

molecule leads to better

combustion which compensates.

• Independent tests between diesel

and VPO with Elsbett Technology

show no statistically significant

difference in fuel consumption.

• Vehicle operators report no

noticeable difference in engine

performance.

VPO impact on emissions

Emissions are a function of Elsbett Technology and VPO fuel

• Independent emissions tests have been conducted by

and other reputable institutes in Europe.

• The tests show consistent results. VPO achieves:

• Reduced HC emissions

• Reduced CO emissions

• Significant reduction in PM10 50%

• Elsbett technology can manage NOx emissions within Euro V for trucks.

Available volumes of VPO

• Current German VPO market is approx 650 million litres / yr

• More than half the UK annual biodiesel market

• 300 million litres / yr of rapeseed oil are used in UK biodiesel

• This would save an extra 140,000 tonnes of CO2 if used as VPO

• It would provide enough VPO for 150,000 cars or 8,000 HGVs

VPO can make a significant contribution to UK targets

The technology is available now

But it requires a level playing field with biodiesel

Taxation regime for transport fuel

UK tax on CO2Why is VPO overtaxed and LPG undertaxed?

0

5

10

15

20

25

biodiesel LPG VPO ULS Diesel

tax

p/k

g C

O2

How much is the net subsidy on VPO?

VPO subsidy as a fuel:

Full diesel tax = 50.35p plus VAT = 59.2p / litre

VPO fuel tax = 30.35p plus VAT = 35.7p / litre

Fuel subsidy = 23.5p / litre

Rapeseed oil subsidy as food:

Price per litre 1.17p per litre (Tesco 20 Sep 2008)

Subsidy = VAT exemption = 20.5p / litre

Tax penalty on VPO as a fuel vs food= 35.7p / litre

The net subsidy on VPO as fuel = 3p / litre

VPO in summary

• VPO has a high CO2 performance

•Worthwhile quantities are available

• VPO has a good environmental position

• VPO avoids creating social concerns

There is no incentive for the CO2 performance and the net

subsidy is negligible.