05 август 2008, вторник

Biodiesel Potential

Although not as widely produced and used, biodiesel’s popularity is growing in the hemisphere. While the United States, Canada and Brazil use gasoline as the main transportation fuel, the rest of the continent uses more diesel than gasoline. Actually, in several Latin American countries, diesel is used not only for transportation, but also for power generation. For example, Honduras uses 32 million gallons of gasoline annually, compared to 66 million gallons of diesel for transportation and power.
The United States, Argentina and Brazil use soybean oil as feedstock, whereas most of Latin America is rich in palm oil derived from African palms. Brazil also uses sunflower, castor and other vegetable oils as feedstocks.
However, all these vegetable oils are traditional food staples and therefore increased use for biodiesel production reduces their availability and hence increases their prices. While future prices and availability cannot be predicted, it is safe to say that the link between food staples and renewable fuel, as is the case for vegetable oil-derived biodiesel, is highly problematic.

As feedstock prices have risen over the last two years, the profit margins of biodiesel production have largely evaporated. Soybean prices rose from $7 per bushel in January 2007 to over $12 in January 2008. Honduras and Colombia have in the last 12 months shelved plans for African palm plantations and biodiesel plants. In the long run, just like cellulosic ethanol, it makes sense to identify and pursue non-edible alternative, abundant and inexpensive feedstock. A number of companies across the Western Hemisphere are performing small-scale experiments with alternative feedstocks such as waste vegetable oil (used cooking oil), animal fat and fish oil.

In addition, efforts are underway to assess the potential and economic feasibility of jatropha curcas, a small tree that yields seeds rich in non-edible oil (35-40 percent) that can be converted to biodiesel. Because of its toxicity to humans and animals, jatropha is used for neither human nor animal consumption. Moreover, it is native to the Caribbean and Central American region, increasing the chances that it could form the basis of a local biofuels industry. To date, most of the information about jatropha planting and biodiesel production comes from India, where microfarmers grow the plant. A small commercial jatropha biodiesel company is operating in Guatemala and more developmental projects are underway in Honduras and South Florida.

Biodiesel is more amenable to small-scale production, as opposed to ethanol, which requires large economies of scale. The capital investment for biodiesel production units is around $0.50 per gallon of biodiesel capacity, whereas ethanol production units require more than $2.00 per gallon of ethanol capacity. Given that most of Latin America makes extensive use of diesel, biodiesel production in those countries makes economic and social sense. Process equipment can be secured from a number of manufacturers in the world, but they are all based on the well-established transesterification process (transesterification refers to the chemical process that turns oils and fats into biodiesel). Both on-site and pre-fabricated construction is available, and the plants are readily expandable. The issue of biodiesel quality standardization remains critical but, as mentioned earlier, recently the United States, the European Union and Brazil have initiated discussions to harmonize their standards, hopefully producing a single global standard

Source: http://www.latinbusinesschronicle.com/app/article.aspx?id=2605