Presented by Tony Hartmann with Great Lakes Ag Energy at the 10th Annual Green Vehicles Workshop on April 24, 2013.

1. MATC’s 10th Annual
Green Vehicles Workshop
April 24th, 2013 * Milwaukee, WI
Vehicle & Fuel Trends – Biodiesel Update
Tony Hartmann, Great Lakes Ag’ & Most Energy
Past President - Wisconsin Biodiesel Association

2. Wisconsin Biodiesel Producers
• SunPower, Cumberland 2-3 Mmgy (nameplate)
• Bio-Blends, Manitowoc 2-3 Mmgy “
• Sanimax, Deforest 10-20 Mmgy “
• Cashton Biodiesel 8-12 Mmgy “

3. Biodiesel Bottom Line
Source: www. seekingalpha.com, Margin Update, Robert Wagner, 4/17/13

4. ‘RFS-2’ Mandate
•RFS-2 caps starch-ethanol & requires use
of 1 B gals of advanced biofuels in 2012 &
like amount of biodiesel, increasing to 21
B gals by 2022 –> 16 B gals. of which is
cellulosic*
*Defined as Renewable fuel produced from cellulose,
hemicellulose, lignin, or waste organics, w/ 60% GHG
reduction (cellulosic ethanol, BTL diesel, green
gasoline, methane, etc.)

5. RFS2 Fuel Volumes & Type

6. Billion Ton Study
Question – Is there enough biomass feedstock to
replace 30% of annual U.S. petroleum
consumption (6 M barrels/day, 90 B gals/yr.)?
Answer – Yes (136%)

7. Feedstock Type & Distribution

8. Annual Ag’ Land Resources
• Crop Residuals (75%)……….………….……..428 M
• Perennial Crops (55M acres)………...……377 M
• Food Grain…………………………………….…….87 M
• Manure/Animal & Process Waste...……106 M
998 M
(dry tons)
DOE/USDA (4/05)

9. The RIN deal
• RINs begin at the biofuel refinery.
• For each gal. of corn-starch ethanol produced,
one RIN is issued; for agri-biodiesel, 1.5 RINs
• Cellulose ethanol receives 2.5 RINs/gal
• Energy Independence & Security Act of 2007
provides RINs for unspecified advanced biofuels
• RIN types; ‘D1-D7’ (Biodiesel = D4)

10. Renewable Identification Numbers – ‘RINs’
• Biodiesel = D4 RIN
• Advanced Biofuel = D5 RIN

11. RINs & U.S. Biodiesel Production
• Obligated parties in the fossil fuel industry
must purchase RINs or biofuel directly
• 2013 biodiesel production figures:
Feb. < 78 M gals; (150 M gals for Jan./Feb.)
• In Feb. (D4) RIN prices jumped to 86 cents
• By April 9, D4 RIN prices approached $1

12. Volatile RIN Prices
• U.S. biodiesel production, and therefore RIN
generation, are low relative to the new 2013
increased mandate of 1.28 billion gallons
• Imports currently high
• RINs not generated = shortage of RINs
• Biodiesel blenders are happy for now…
• Obligated parties not so much

13. Current Policy Benefits
• U.S. biodiesel tax credit revived through 2013
by Congress (Retro-active to 1/1/12)
• Cost > $2 billion under a provision passed by
Congress to avoid the "fiscal cliff.”
• Iowa Senator Grassley expects the credit will
be phased out ‘at some point’ (About 1/4 of
U.S. soy oil goes to biodiesel - 750 Mmgy)
• RIN credits at all-time high in 2013

14. Prime-time Industry?
.
Economic competitiveness of a billion-ton
bioenergy and bioproducts industry

15. Bioenergy Research Centers
• Great Lks. BioEnergy Research
Ctr. (GLBRC) * UW – Madison
• Joint BioEnergy Institute (JBEI)
* Lawrence Berkley Nat’l Lab
• BioEnergy Science Center (BESC)
* Oak Ridge National Lab (ORNL)

16. For Now…
• Biodiesel good!
• Just bring me some in Madison
Longer Term…
•Biodiesel good!
•Waste/recycled oil feedstock
•B2 blend
•Distributed production
•Support lipid R&D

17. MATC’s 10th Annual
Green Vehicles Workshop
April 24th, 2013 * Milwaukee, WI
Vehicle & Fuel Trends – Biodiesel Update
Tony Hartmann, Great Lakes Ag’ & Most Energy
608-215-4446