Sustainability is everywhere. Many large companies are touting their goals to be carbon neutral and use sustainable production practices. As much as Elon Musk may not like it, diesel engines are still going to be with us for some time. So what can we do to improve the sustainability and lower the carbon footprint of our trucks, buses, railroads, and farm/construction equipment? Soybeans and soybean oil may play a large role in that answer.
Renewable diesel is not the same as biodiesel, although they do share some of the same feedstocks. Biodiesel can only be blended with petroleum-based diesel up to a 20% rate according to the Energy Information Administration. Renewable diesel can be blended with petroleum-based diesel at any level, giving it more flexibility and potential upside when it comes to demand.
According to the US Department of Energy, renewable diesel reduces both carbon dioxide and nitrogen oxide emissions when compared with traditional petroleum diesel. California’s Low Carbon Fuel Standard Certified Carbon Intensities study shows renewable diesel reduces carbon intensity by 65% when compared to petroleum diesel. Renewable diesel meets all current standards of traditional diesel, making it an easy direct replacement into current fuel infrastructure and existing diesel engines.
What is The Difference?
So what is the difference between biodiesel and renewable diesel? Even though the names are similar and overall goal of the fuels is the same, they do have distinct differences.
Biodiesel contains oxygen, thus creating approximately 7% less energy by volume. Renewable diesel produces 4% less energy by volume when compared to petroleum-based diesel. (University of Illinois Farmdoc Daily)
Biodiesel can only be stored for limited lengths of time due to oxidation, causing corrosion of storage facilities. Renewable diesel is chemically very similar to petroleum diesel and does not require specific storage facilities compared to petroleum based products.
Biodiesel has a relatively high freezing point of 34 degrees Fahrenheit, which can cause “gelling” in fuel tanks during cold weather. This is why biodiesel is blended with conventional diesel at 5-20%. Renewable diesel has the same freezing point as petroleum diesel of around 16 ° F.
Renewable diesel production can be completed in existing crude refineries with some retooling as it has a similar process to traditional petroleum diesel. Biodiesel facilities are dedicated to strictly biodiesel production.
The boom in renewable diesel creates many questions about the potential impacts on US agriculture. Both renewable and biodiesel use the same organic fats and oil feedstocks (such as soybean oil) to create the finished product, but the processes are very different. Biodiesel uses a relatively simple chemical reaction production process and must be blended with petroleum diesel for use in modern diesel engines. Renewable diesel is a fully refined product that is “cracked” in the same way as petroleum based products. This makes renewable diesel a direct substitute fuel that meets the same technical specifications as petroleum based diesel. This gives renewable diesel the ability to be a direct and complete replacement for traditional petroleum based diesel.
What Does This Mean For Soybeans?
About 15 months ago, this newsletter published an article about the potential for US agriculture to provide the soybean oil for these two Renewable Fuel Standard mandated products. In this article, we referenced the 2021 biodiesel and renewable diesel production of 2.438 billion gallons. By 2024, this volume is expected to increase to 7.3 billion gallons. Total distillate production (majority diesel fuel) is currently 60.7 billion gallons annually. The potential for biodiesel and renewable diesel are huge, assuming the economics of production are competitive with petroleum based products.
The other advantage is security. With the Ukraine war still burning hot, global transport of all products, including crude oil, is becoming less certain. The United States has the potential to replace some of the foreign oil imports with domestically grown soybean oil in its diesel fuel production.
Sustainable Aviation Fuel
Sustainable Aviation Fuel (SAF) is another renewable product, very similar to renewable diesel. The production process is similar and there are currently 2 production facilities with one being in Paramount, California, providing SAF to Los Angeles International Airport and Ontario International Airport. The other plant is owned by an international company, Neste. They supply San Francisco International Airport and regional airports in Telluride and Aspen, Colorado.
The US Department of Energy says that 100% SAF has the potential to reduce greenhouse gas emissions by up to 94% when compared to conventional jet fuel. Similar to renewable diesel, SAF can be used in existing aircraft and infrastructure. Multiple US government agencies announced the Sustainable Aviation Fuel Grand Challenge in 2021, with the purpose of expanding domestic consumption to 3 billion gallons in 2030 and 35 billion gallons in 2050 while achieving at least a 50% reduction in life cycle greenhouse gas emissions.
All of these new uses for our locally produced agricultural products have the potential to create an entirely new domestic market for our soybean products, making us less dependent on exports to foreign countries to maintain demand. Is this the equivalent of the “ethanol boom” we saw in the late 2000’s and early 2010’s? It is still early, but the potential is definitely there.
This article originally appears in the Summer edition of Today’s Land Owner, authored by Grant Aschinger, AFM
