Oilseeds and Biofuels in Washington State, 2017 Bioenergy Goals - - PowerPoint PPT Presentation

Oilseeds and Biofuels in Washington State, 2017

Mary Beth Lang, Bioenergy Coordinator

Bioenergy Goals

• Reduce dependence on foreign oil
• Improve environment / public health
• Support WA agriculture and rural economy

State Action Strategies

Process

at in-state crushers / refineries

Use

in state

Grow

• ilseed/biofuel

crops Invest in cropping systems research Incentivize investment in processing facilities Require biodiesel use; Ensure quality

Research investment made at WSU

• Initiated in August 2007.
• Initial state funding was

$500,000 annually, now $300,000/yr.

• Rebranded in 2013:

WA Oilseed Cropping Systems

• 15-20 projects each year;

interdisciplinary research & extension team.

• Goal: Increase oilseed

acreage from <1% to 10%

• f crop acreage by 2020.

Washington Biofuels Cropping Systems

January 2017

Washington State Dept. of Agriculture 3

WA canola production is significantly higher than it was prior to 2012

Washington State Dept. of Agriculture January 2017

• 10,000,000

20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 1987 1992 1997 2002 2007 2011 2012 2013 2014 2015 2016

WA Canola Production 1987-2016

Harvested Acres Production

5-year intervals – Ag Census 1-year intervals

Acres

4

Source: USDA, National Agricultural Statistics Service Pounds

Washington Canola Acreage, 2007

Planted Acres reported to USDA-FSA by County

Yakima

16

Okanogan 22 Grant

1,686

King Ferry Lewis Chelan Kittitas Lincoln

1,171

Stevens Skagit Adams

2,973

Klickitat Benton

22

Whitman

1,250

Pierce Clallam Whatcom Douglas

1,083

Spokane

590

Jefferson Snohomish

29

Skamania Franklin

134

Cowlitz Pacific Grays Harbor

5

Mason Clark

16

Pend Oreille Walla Walla 442 Asotin Columbia

265

Garfield Thurston Kitsap Island Wahkiakum San Juan

Source: Acreage Reported to USDA’s Farm Service Agency

Prepared by Washington State Dept. of Agriculture

Washington

9,704 acres

Washington Canola Acreage, 2016

Showing planted acres by County for 2016 and 2015

Yakima Okanogan 415

641

Grant

1,629

1,506 King Ferry Lewis Chelan Kittitas Lincoln

4,688

4,447 Stevens 174

114

Skagit Adams

3,926

3,159 Klickitat

261

315

Benton

3

Whitman

3,279

2,078 Pierce Clallam Whatcom Douglas

4,249

6,651 Spokane

7,397

9,139 Jefferson Snohomish Skamania Franklin

30

31

Cowlitz Pacific Grays Harbor Mason Clark Pend Oreille Walla Walla 705

1,604

Asotin

66

86

Columbia

261

320

Garfield 1,230

1,260

Thurston Kitsap Island Wahkiakum San Juan

Source: Acreage Reported to USDA’s Farm Service Agency, as of 1/4/17

Prepared by Washington State Dept. of Agriculture January 2017

Washington

28,311 acres

2015: 31,344 acres

WA now producing 25% of PNW canola

Washington State Dept. of Agriculture January 2017 7

Source: USDA, National Agricultural Statistics Service

26,100 61,200 56,400 37,400 58,900

50,000 100,000 150,000 200,000 250,000 300,000

2012 2013 2014 2015 2016

PNW Canola Production, 2012-16

Montana Idaho Oregon Washington

1,000 lbs

WA has oilseed/biodiesel processing facilities to handle 300,000+ acres of production

Biodiesel Processor Oilseed Crusher REG PCC

Crush capacity: 350,000 T/yr = 350,000 acres Refining capacity: 105 MGY = 1.5 mil acres

If yield is 1 T/ac

WA Oilseed/Biodiesel Processors

• REG Grays Harbor

– 100 MGY capacity. Feedstock: canola oil, primarily from Canada. Receives some oil from Pacific Coast Canola.

• Pacific Coast Canola

– Crush Capacity: 1,000 MT per day. Crushes GMO, non-GMO and High Oleic canola. – Operated by Viterra since 2015. Produces food grade oil that’s available for biofuel production.

• Odessa

– 8 MGY capacity. Integrated oilseed crusher/biodiesel production facility. Idle since 2014.

• General Biodiesel, Seattle

– 5 MGY capacity; restarted production in fall 2016. Feedstock: used cooking oil. Primarily selling into Oregon.

• Sequential Pacific, Salem, OR

– 17 MGY capacity. Collects substantial amount of used cooking oil in Washington.

January 2017 Washington State Dept. of Agriculture 9

Market for biodiesel is especially strong along the West Coast

• Renewable Fuel Standards (RFS)

– Federal RFS2

• Requires 36 billion gallons of

renewable transportation fuel by 2022

– Our neighbors

• Oregon: 5% biodiesel in all diesel since 2011
• British Columbia: 4% biodiesel
• California: Low Carbon Fuel Standard (LCFS)

– Washington’s 2% biodiesel requirement is not functional

• Industry Renewable Fuel Initiatives

– Military – Commercial Aviation

• Government Use Requirements

State and federal policy continue to support biofuels

U.S. biodiesel production primarily driven by federal mandate and regional markets

January 2017 Washington State Dept. of Agriculture

200 400 600 800 1000 1200 1400 1600 1800 2000 2200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Million Gallons Biodiesel Production Federal Renewable Fuel Standard (RFS)

11

Source: U.S. Energy Information Administration

State agencies lead biodiesel use in WA

• State agency biodiesel purchases topped 1 million gallons for 4th time in 2016.

– State Ferries (top user) fuels with B5. – State fleets average 14% biodiesel

• B20 in western WA
• B20 (summer) / B5-B10 (winter)

in eastern WA – Per contract, biodiesel must be at least 51% in-state produced

• r feedstock-sourced.
• Testing and use show no

biodiesel-related fuel quality issues.

Washington State Dept. of Agriculture January 2017 12

• 200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2008 2009 2010 2011 2012 2013 2014 2015 2016

State Agency Biodiesel Purchases

B100 Gallons

What’s ahead in the near term?

• Market demand for WA oilseeds strong

– WA crushing and biodiesel facilities very interested in WA feedstocks

• Market demand for renewable fuels strong

– RFS Renewable Volume Obligation (RVO) increases already in place – CA, OR and Canadian market demands continuing – Alternative Jet Fuel demand strong – WA consumption increase driven by state and local govt demand

WOCS to continue and evolve in response to market and grower needs

Washington State Dept. of Agriculture January 2017 13