From the Podium: Insights on Liquid Biofuels & Renewable Fuels

in October 7th, 2024

By Keith Sampson, Senior Vice President, Energy Services

Recently, I had the privilege of participating in a panel discussion on the latest applications and advancements in the liquid fuels marketplace at the Northeast Energy and Commerce Association’s 2024 Fuels Conference. Hosted at the Federal Reserve Bank of Boston near South Station, this event brought together diverse insights into the present and future roles of bio and renewable fuels. I was honored to share the stage with such remarkable panelists, including Dr. Jenny Frank, Research Associate at NORA and Assistant Professor of Energy Resources Economics at SUNY College of Environmental Science and Forestry (SUNY ESF); Matt Leuk, Technical Manager at Neste; and Shahbaz Soofi, Climate Strategy Manager at Massachusetts Port Authority (Massport). Our panel was moderated by Catie Kerns, Senior Vice President of Corporate Affairs and Sustainability at Global Partners LP, who provided excellent discussions on developments in the liquid fuels sector.

Composition of Products

During the panel conversation, we discussed the composition of products like biofuel and renewable diesel. Matt Leuck clarified that Renewable diesel production uses a hydrogenation process rather than the esterification process used to produce biodiesel. Renewable diesel is a drop-in fuel, it meets ASTM D975 specification for petroleum diesel, and it can be seamlessly blended, transported, and even co-processed with petroleum diesel. Biodiesel, on the other hand, is not a drop-in fuel; it is an additive that can be blended with petroleum diesel at concentrations that depend on the climate and the application. Renewable diesel is a full replacement for petroleum diesel fuel that can be used in reciprocating engines without significant changes. Testing has also started with the use of renewable diesel in natural gas firmed turbines in combined cycle cogeneration systems that produce both steam/hot water and electricity. 

What End Users are Saying about Renewable Diesel & Biofuel

The panel began with Kerns’ opening question: “What are end-use customers saying about renewable and biofuel?” In response, I emphasized that liquid biofuel offers significant potential to help customers achieve their climate and sustainability objectives. Across various sectors, such as manufacturing, industrial, healthcare, higher education, government, municipal, hospitality, data storage and technology, our customers are setting greenhouse gas (GHG) reduction goals. These targets are driven by influences from stakeholders like Board of Directors, stockholders, employees, faculty and students, as well as local ordinances, state executive orders, and frameworks like RE100, the Science Based Targets initiative (SBTi), and global agreements including The Paris Agreement, aiming to limit warming to 1.5°C and the UN-backed Race to Zero campaign.

Many end users, including Competitive Energy Services’ Customers, have developed energy, sustainability, or net zero master plans, which outline the current state of emissions, associated infrastructure, and potential reduction strategies, covering everything from infrastructure changes to procurement. CES helps pull these plans together, where we evaluate options including electrification, assessing alternative energy solutions such as onsite solar, offsite renewable energy contracting, biomass and biofuel options, and demand-side management. These strategies are paired with tracking initiatives, including utility cost and carbon management. While electrification efforts generally focus on technologies like heat pumps, geothermal systems, solar, electric boilers and battery storage, there remains a need for reliable heating solutions that do not solely depend on the electric grid, particularly in colder regions such as New England. Over the next 5- to 10-years, fossil fuels will likely still play a role in heating for most of our customers, making renewable liquid fuels a practical, lower carbon alternative for meeting climate goals.

Examples of Current Applications

The panel shared examples of current applications, pilots, and trials of liquid biofuel. Shahbaz Soofi described how Massport has successfully tested liquid biofuel in both on-and-off road vehicles, highlighting one case where operators reported that an older piece of equipment ran better than ever when using renewable diesel. I also discussed a pilot project at the University of Massachusetts Amherst (UMass Amherst), where liquid biofuel was tested in a stationary steam boiler. To ensure compliance with Massachusetts Department of Environmental Protection regulations, UMass contracted a firm to test the boiler’s stack air emissions using renewable diesel under a variety of operating conditions. The test results showed that the biofuel met all required parameters, performing as well as or better than traditional diesel fuel.

Leuk described how Neste renewable diesel has been utilized in on-road vehicle fleets for years. Neste MY Renewable Diesel offers significant environmental benefits and ease of use for fleet operations. A prime example is the City of Oakland, California, which partnered with Neste (Neste Case Study) to meet its climate goals by switching its entire fleet of diesel-powered vehicles and equipment to run on renewable diesel. This seamless transition allowed the city to repurpose existing internal combustion engines, making an immediate impact on climate change and air pollution without additional taxpayer costs. By using Neste’s drop-in, low emission renewable fuel, Oakland cut engine-out greenhouse gas emissions by 80%, fine particulates by 33%, and nitrogen oxide emissions by 9%. Additionally, Oakland and Neste created a circular economy by collecting used cooking oil from 101 local restaurants, converting over 750,000 pounds of oil into renewable diesel within the first three months. The initiative not only reduced emissions but also generated additional revenue for local businesses and supported jobs. This case underscores the potential for Neste MY Renewable Diesel to reduce greenhouse gas emissions by up to 75% over its lifecycle compared to fossil diesel while offering clean-burning properties that improve both environmental and public health.

Dr. Jenny Frank discussed how biofuel has been successfully tested over a number of years in residential heating systems. She elaborated on how the residential fuel supply chain has been scaling toward increasing more renewable feedstocks. According to Dr. Frank, when compared to alternatives like natural gas and standard heating oil (ULSD), biofuels provide significant reductions in emissions and were financially viable. In her studies, a “bioheat blend” showed favorable results for both cost and emissions reduction, second only to air source heat pumps for greenhouse gas emissions. In her outreach about the subject, she has emphasized that biofuels are readily available, affordable, and can immediately help reduce emissions, making them practical for homeowners. She has also stressed the importance of understanding the role biofuels plays in a circular economy.

“Bioheat Blend” as referenced above can range from B20 (20% bio concentration) to B99 (99% bio concentration). Biofuel has proven to be a good “cleaner” and will emulsify and remove slide and other typical deposits. Cleaning too aggressively in a system that has years of build in in the tank and fuel lines can result in pre-mature plugging of strainers. Learning from practical experience, bioheat dealers often recommend starting a transition to biofuel by utilizing B20 for the 1st heating season and then B30 the 2nd season to ensure the systems are cleaned slowly over time. CES, Simple Energy, and Dartmouth College are partnering to run a bioheat pilot. Last season, a handful of locations changed from standard heating oil to B20 as a test and things went flawlessly. This winter, the B20 locations will use B30 and a new, larger group will begin with B20. One of the key goals of this pilot is to allow Dartmouth to gain some re-world experience with liquid biofuel as they will be expanding their use throughout the campus over the next 3-5 years as they implement their “Dartmouth Green” initiative. 

Conclusion

The group concluded by discussing the future of liquid renewable fuel, highlighting that its adoption and use will continue to expand. Demand is expected to rise as more end users seek solutions to lower their emissions, especially considering regulations like Massachusetts Executive Order 592, which mandates 50% reduction in greenhouse gas emissions by 2030, 75% by 2040 and achieving net zero by 2050, based on 1990 levels. On the supply side, the region’s top fuel suppliers have signed distribution agreements with several renewable fuel producers, ensuring supply growth. Distribution is also set to increase as more suppliers and dealers shift standard oil storage and distribution infrastructure toward sustainable fuels.

An example of the growing distribution and supply of renewable fuels, Vicinity Energy, the operator of a significant district energy system in Boston, recently took a significant step by announcing a long-term supply agreement with Lifecycle Renewables. This agreement will utilize Lifecycle’s TrueBurn liquid fuel as a fossil-free heating source for its district energy systems, supporting the renewable energy transition.

The panel discussion showcased the growing significance and practicality of liquid biofuels and renewable fuels as viable solutions for meeting climate and sustainability goals across various sectors. As regulations and corporate commitments drive the need for cleaner energy, the use of biofuels like renewable diesel provides an immediate opportunity for reducing greenhouse gas emissions while supporting a more circular economy. With successful applications across vehicle fleets, stationary boilers, and residential heating systems, biofuels offer a lower-carbon alternative that is scalable. Liquid biofuels are typically more expensive to purchase than fossil alternatives, increasing operating costs. However, with low to zero upfront capital costs, liquid biofuels can still be a cost-effective solution for end users with near term carbon reduction goals. As more organizations and suppliers prioritize sustainability, the expansion of biofuel use and distribution will play a crucial role in the transition to cleaner energy sources, bridging the gap toward more widespread electrification and decarbonization.

I would like to thank the panel and the Northeast Energy and Commerce Association for the opportunity to share insights on liquid fuels and renewable energy advancements, and for the engaging discussions on the topic of the future potential of liquid biofuels and renewable fuels.

If you have any questions or would like to learn more about liquid biofuels, renewable fuels, or your particular energy goals and needs, please feel free to contact me or anyone on the CES Energy Services Advisory team.

Photo by Garry Killian

 

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