Regulators in split over "renewable" biodiesel made with methanol
Friday 13 March 2009
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| It might be the same stuff, but use it in an engine in a truck and biodiesel made using a methanol reagent is classed as "renewable", while in an engine at a power plant it might be classed as "fossil fuel" by UK regulators |
Biodiesel made using biomass and a methanol reagent will not be eligible for the government's renewable electricity subsidy scheme, if the methanol is sourced from fossil fuels, writes James Cartledge.
However, it appears that if the biodiesel is used as a transport fuel, it is still eligible for Renewable Transport Fuel Obligation certificates.
Energy regulator Ofgem has published a new ruling on biodiesel this week, stating that use of methanol made from natural gas in biodiesel production discounts the fuel from the Renewables Obligation scheme.
But speaking to New Energy Focus today, the transport fuels regulator, the Renewable Fuels Agency, said the same biodiesel does still count under the Renewable Transport Fuels Obligation scheme.
Biodiesel can be made in a number of ways from energy crops and other biomass materials, but one method involves vegetable oils being converted to biodiesel - and a glycerol by-product - using an alcohol like methanol and a sodium hydroxide catalyst.
Such a process might see up to 15% of the resulting biodiesel originating from the methanol, rather than the biomass. However, many production plants can also recover excess methanol used in the process.
Last year it emerged that some companies were using methanol derived from natural gas, which Ofgem said implied that the biodiesel was "indirectly derived from a fossil fuel".
As a result, generators using such biodiesel to produce electricity will now not be allowed to sell Renewable Obligation Certificates to energy suppliers under the government's renewables subsidy scheme.
Following consultation on the issue and discussions with the Department for Energy and Climate Change, Ofgem confirmed this week: "We have concluded that the use of biodiesel manufactured in such a way is not eligible for ROCs".
Where fossil fuel derived alcohols are used, no ROCs will be issued at all - even for the biomass-derived portion of the biodiesel involved, although using such biodiesel in the fuel mix will not affect the ROCs issued against eligible biodiesels in any particular month.
The move has been denounced by industry, which said it would not help to encourage the generation of renewable energy, and Ofgem itself conceded: "We note that this runs contra to the desires of the majority of respondents," referring to last year's consultation.
Transport use
While biodiesel made using methanol may not count towards the government's green electricity subsidy scheme, it does appear to continue to count under the government's green transport fuels subsidy scheme.
The Renewable Fuels Agency said today that it was aware of the issue of fossil fuel-sourced methanol being used in biodiesel production.
A spokesman told New Energy Focus that the issue had been accounted for in the organisation's life cycle analysis calculations regarding biofuel sustainability reporting.
The RFA spokesman said: "Biodiesel is a renewable fuel under the RTFO, and the RFA includes the methanol used in the manufacture of biodiesel in the lifecycle analysis of biodiesel carbon emissions, just like the tractor fuel used to grow the crop and the electricity used to process it. The Renewables Obligation is based on different definitions than the RTFO."
The Renewable Energy Association said today that the apparent difference in using the biodiesel in an engine in a generating plant, or in an engine in a truck, as stated by the two different regulators, was "silly".
A spokeswoman said the Association's position was that the biodiesel should be eligible for both ROCs and Renewable Transport Fuel Obligation certificates.
The RFA includes the methanol used in the manufacture of biodiesel in the lifecycle analysis of biodiesel carbon emissions, just like the tractor fuel used to grow the crop.
"Ofgem is shying away from the stigma attached to biofuels at the moment," the spokeswoman said. "Whenever there is the risk of too many ROCs being awarded, Ofgem always errs on the side of caution, but this is not going to encourage renewable energy."
Other biodiesel processes
Ofgem said it would continue to issue ROCs on electricity generated from biodiesel where biomass-derived alcohols - biomethanol or bioethanol - are used in the production process.
Biodiesel production processes like direct biomass-to-liquid conversion or the Fisher-Tropsh process will also continue to allow ROCs to be issued by generators using the resulting fuel.
The regulator is yet to decide on the eligibility of glycerol used in advanced combustion, gasification of anaerobic digestion plants, although it said it is still open to the possibility of including it. Further talks with industry will be undertaken on this issue.
The regulator is now saying that generators wishing to claim ROCs will have to provide evidence to show the sources of their biodiesel.
Ofgem said: "As with any fuel it is up to the generating station to prove the renewability of the fuels used. Ofgem will assess the renewability of any biodiesel type fuel derived from any other reagents on the bases of the evidence provided by interested generators."
Generators unsure whether they are caught in the ruling can approach the regulator for clarity.
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