The use of greener fuels in the transportation sector has been in higher demand due to the sector’s high contribution to the U.S.’ total greenhouse gas (GHG) emissions. In 2019, the Environmental Protection Agency (EPA) logged the sector’s impact at 29 percent of all GHG emissions—the highest of each surveyed sector. In comparison, EPA recorded the agriculture sector’s percentage of GHG emissions at 10 percent.
[inline_image file=”9c085a53d9f6e643af50fffa77988d1e.jpg” caption=”The transportation sector accounted for 29 percent of total U.S. greenhouse gas emissions in 2019. Environmental Protection Agency.”]
There is an opportunity for undesirable slaughterhouse waste products to be utilized by plants producing biofuels, especially those processing renewable fuels. While there are currently few plants in the U.S. processing the sustainable fuel, higher demand is leading to more plants being built in the coming years.
Renewable diesel vs. biodiesel
Biofuels are made by processing natural waste like oils and animal fats. From a sustainability standpoint, these fuels are desirable as petroleum diesel alternatives because they are renewable resources.
Renewable diesel is 100 percent renewable and chemically identical to petroleum diesel. Because the fuel is chemically identical, it does not need to be blended with fossil diesel like biodiesel does, and there is no need for engine modifications. The fuel is also able to withstand cold temperatures and can be used year-round in vehicles. In addition, renewable diesel can be stored in the same storage containers used to store petroleum fuel. Vehicles can reduce their GHG emissions by 80 percent by using the renewable fuel.
[inline_image file=”9f9a98799bb9835d6b47bf843c475bf8.jpg” caption=”A sample of renewable diesel. K?rlis Dambr?ns.”]
Renewable diesel is processed in three different ways: hydrotreating; thermal conversion; and biomass-to-liquid. Hydrogenation adds hydrogen to raw materials to eliminate oxygen, nitrogen and metal. Once these elements and materials are removed, the oil will burn cleaner.
Thermal conversion, also known as depolymerization, creates oil out of carbonized biomass. Once the oil is derived, it is rendered through refinement processes. Finally, biomass-to-liquid uses gasification at a high temperature to convert biomass into synthetic, hydrogen-rich gas mixtures.
No matter which process was used, renewable diesel will not contain any oxygen. This leads to a longer shelf life and fewer pollution emissions due to a reduction in nitrogen oxide. While states such as California and New York offer incentives for businesses using renewable diesel, the cost of production is higher than petroleum diesel or biodiesel.
[inline_image file=”a37a40a51417b0fe7893d04527d48f7e.jpg” caption=”1 gas pump.jpg”]
Biodiesel is created through a process called transesterification, which purifies the oils and fats before they are blended at a 5- to 20-percent ration with petroleum diesel. Oxygen is not removed during the process, leading to a shorter shelf life and greater emissions compared to renewable diesel.
The presence of oxygen also affects the properties of biodiesel in colder environments, such as separation, sludge and increased emissions. In addition, existing fuel supply systems require upgrades in order to use biodiesel.
Processing renewable diesel is well-suited for utilizing slaughterhouse waste, tallow and yellow grease. The fuel is usually made in petroleum refineries due to processing complexity and cost, according to the National Biodiesel Education Program. Refineries also tend to process the fuel due to the difficulties of producing hydrogen and the need for a propane market.
[inline_image file=”bf3b15e805fec8baea5fdc61279b2e89.png” caption=”us-biodiesel-production.png”]
In 2020, renewable energy accounted for about 9.8 percent of U.S. energy consumption, according to the Energy Information Administration’s (EIA’s) Annual Energy outlook. By 2024, consumption is expected to reach 12.5 percent of total energy consumption. However, rising feedstock prices and global demand for feedstocks has increased the price of renewable identification number (RIN) credits to new highs.
RIN credits are the compliance mechanism used for the Renewable Fuel Standard program. Refiners must generate or purchase RINs to demonstrate compliance; the higher-value RINs allow market participants to offset rising biofuel costs.
[inline_image file=”7841e37d92ae62192653ffea5efc9e3a.jpg” caption=”Soybean oil was used more than tallow, grease and other feedstocks in the production of biofuels in January 2021. Not included in the above graphic is corn, which was the most used feedstock in January for biofuels at 23,237 million pounds. U.S. Energy Information Administration data.”]
Producing a gallon of renewable diesel requires about 8.5 pounds of feedstock per gallon, whereas biodiesel requires about one pound less of feedstock. In order to reach the expected 2024 level of renewable diesel production, an additional 17 billion pounds of feedstock will be required, according to a Goldman Sachs report. While low-carbon feedstocks like tallow are gaining traction, producers mostly rely on corn and soybean oil to produce biofuels.
Heartwell Renewables
As of May 2020, the U.S. Department of Energy estimated there were five plants in the U.S. that produced renewable diesel, with a combined capacity of about 400 million gallons per year. Last year, a total of 533 million gallons of renewable diesel were produced, according to the EPA. In 2019, the EPA reported total U.S. renewable fuel consumption, including imports, was 900 million gallons, most of which was used by California due to the economic benefits under its Low Carbon Fuel Standard.
[inline_image file=”bc41198a512690083a9fd43da335b1f9.png” caption=”Heartwell Logo.png”]
Although renewable diesel plants are not as common and the fuel is not widely available yet, there is a growing demand for new plants. Cargill and Love’s Family of Companies are two of the latest businesses to enter the renewable diesel market. The partnership plans to build a plant in Hastings, NE, called Heartwell Renewables, which will have the ability to produce about 80 million gallons annually of renewable diesel.
John Niemann, president of Cargill’s protein ingredients and international, told WLJ the partnership between Cargill and Love’s has been in the works for about two years. Cargill will supply feedstock in the form of tallow and Love’s will transport the product to the market. The venture will be the first to both produce and market the green fuel all the way to the retail pump.
[inline_image file=”1ca755aceff063ea3041b7c10298c50a.jpg” caption=”Trucks line up to get fuel at a Love’s gas station. Love’s Travel Stops & Country Stores.”]
“Things like this are an example where two companies can come together and bring the best of both resources in terms of our supply chain and their retail chains,” Niemann said.
Niemann noted that while the fuel is chemically identical to petroleum fuel, it has a drop in carbon intensity and emissions. The fuel also has a faster combustion speed, which brings more power to the engine and should lead to lower vehicle maintenance.
The Hastings location was chosen due to the proximity to four Cargill plants within truck or rail distance. Not only will Cargill be supplying tallow, but also a used cooking oil, which will come from other facilities in Nebraska, Niemann said. Cargill will also procure product from other suppliers in order to ensure there is no supply disruption as demand grows.
[inline_image file=”9d651895c69b96d9e06a41c571020689.png” caption=”Cargill_logo.svg.png”]
“I think it’s really good for agriculture,” Niemann said. “It’s an example where agriculture can help solve problems so we can improve the environment and reduce emissions. We can take what is considered a byproduct and upcycle it into a green fuel.
“We’re excited for the ag industry to be a participant in fueling transportation and improving the environment.”
One hundred percent of the diesel will be sent to Love’s retail locations, which total about 500 around the country. Construction was expected to break ground over the summer, with an expected end date in the spring of 2023.
