As more evidence comes out daily of the ties between the leaders of petroleum producing countries and terrorists (not to mention the human rights abuses in their own countries), the incentive for finding an alternative to petroleum rises higher and higher.




I. How much biodiesel?

First, we need to understand exactly how much biodiesel would be needed to replace all petroleum transportation fuels. So, we need to start with how much petroleum is currently used for that purpose. Per the Department of Energy’s statistics, each year the US consumes roughly 60 billion gallons of petroleum diesel and 120 billion gallons of gasoline. First, we need to realize that spark-ignition engines that run on gasoline are generally about 40% less efficient than diesel engines. So, if all spark-ignition engines are gradually replaced with compression-ignition (Diesel) engines for running biodiesel, we wouldn’t need 120 billion gallons of biodiesel to replace that 120 billion gallons of gasoline. To be conservative, we will assume that the average gasoline engine is 35% less efficient, so we’d need 35% less diesel fuel to replace that gasoline. That would work out to 78 billion gallons of diesel fuel. Combine that with the 60 billion gallons of diesel already used, for a total of 138 billion gallons. Now, biodiesel is about 5-8% less energy dense than petroleum diesel, but its greater lubricity and more complete combustion offset that somewhat, leading to an overall fuel efficiency about 2% less than petroleum diesel. So, we’d need about 2% more than that 138 billion gallons, or 140.8 billion gallons of biodiesel. So, this figure is based on vehicles equivalent to those in use today, but with compression-ignition (Diesel) engines running on biodiesel, rather than a mix of petroleum diesel and gasoline. Combined diesel-electric hybrids in wide use, as well as fewer people driving large SUVs when they don’t need such a vehicle would of course bring this number down considerably, but for now we’ll just stick with this figure. (note – my point here is not to claim that conservation is not worthwhile, rather to strictly look at the issue of replacing our current use of fuel with biodiesel – to see how achievable that is). I would like to point out though that a preferable scenario would include a shift to diesel-electric hybrid vehicles (preferably with the ability to be recharged and drive purely on electric power for a short range, perhaps 20-40 miles, to provide the option of zero emissions for in-city driving), and with far fewer people buying 6-8,000 pound SUVs merely to commute to work in by themselves. Those changes could drastically reduce the amount of fuel required for our automotive transportation, and are technologically feasibly currently (see for example Chrysler’s Dodge Intrepid ESX3, built under Clinton’s PNGV program – a full-size diesel electric hybrid sedan that averaged 72 mpg in mixed driving 6, 7).



II. Large scale production

There are two steps that would need to be taken for producing biodiesel on a large scale – growing the feedstocks, and processing them into biodiesel. The main issue that is often contested is whether or not we would be able to grow enough crops to provide the vegetable oil (feedstock) for producing the amount of biodiesel that would be required to completely replace petroleum as a transportation fuel. So, that is the main issue that will be addressed here. The point of this article is not to argue that this approach is the only one that makes sense, or that we should ignore other options (there are some other very appealing options as well, and realistically it makes more sense for a combination of options to be used). Rather, the point is merely to look at one option for producing biodiesel, and see if it would be capable of meeting our needs.

One of the important concerns about wide-scale development of biodiesel is if it would displace croplands currently used for food crops. In the US, roughly 450 million acres of land is used for growing crops, with the majority of that actually being used for producing animal feed for the meat industry. Another 580 million acres is used for grassland pasture and range, according to the USDA’s Economic Research Service. This accounts for nearly half of the 2.3 billion acres within the US (only 3% of which, or 66 million acres, is categorized as urban land). For any biofuel to succeed at replacing a large quantity of petroleum, the yield of fuel per acre needs to be as high as possible. At heart, biofuels are a form of solar energy, as plants use photosynthesis to convert solar energy into chemical energy stored in the form of oils, carbohydrates, proteins, etc.. The more efficient a particular plant is at converting that solar energy into chemical energy, the better it is from a biofuels perspective. Among the most photosynthetically efficient plants are various types of algaes.


NREL’s research focused on the development of algae farms in desert regions, using shallow saltwater pools for growing the algae. Using saltwater eliminates the need for desalination, but could lead to problems as far as salt build-up in bonds. Building the ponds in deserts also leads to problems of high evaporation rates. There are solutions to these problems, but for the purpose of this paper, we will focus instead on the potential such ponds can promise, ignoring for the moment the methods of addressing the solvable challenges remaining when the Aquatic Species Program at NREL ended.


The algae farms would not all need to be built in the same location, of course (and should not for a variety of reasons). The case mentioned above of building it all in the Sonora desert is purely a hypothetical example to illustrate the amount of land required. It would be preferable to spread the algae production around the country, to lessen the cost and energy used in transporting the feedstocks. Algae farms could also be constructed to use waste streams (either human waste or animal waste from animal farms) as a food source, which would provide a beautiful way of spreading algae production around the country. Nutrients can also be extracted from the algae for the production of a fertilizer high in nitrogen and phosphorous. By using waste streams (agricultural, farm animal waste, and human sewage) as the nutrient source, these farms essentially also provide a means of recycling nutrients from fertilizer to food to waste and back to fertilizer. Extracting the nutrients from algae provides a far safer and cleaner method of doing this than spreading manure or wastewater treatment plant “bio-solids” on farmland.

These projected yields of course depend on a variety of factors, sunlight levels in particular. The yield in North Dakota, for example, wouldn’t be as good as the yield in California. Spreading the algae production around the country would result in more land being required than the projected 9.5 million acres, but the benefits from distributed production would outweigh the larger land requirement.

III. Cost

In “The Controlled Eutrophication process: Using Microalgae for CO2 Utilization and Agircultural Fertilizer Recycling”3, the authors estimated a cost per hectare of $40,000 for algal ponds. In their model, the algal ponds would be built around the Salton Sea (in the Sonora desert) feeding off of the agircultural waste streams that normally pollute the Salton Sea with over 10,000 tons of nitrogen and phosphate fertilizers each year. The estimate is based on fairly large ponds, 8 hectares in size each. To be conservative (since their estimate is fairly optimistic), we’ll arbitrarily increase the cost per hectare by 100% as a margin of safety. That brings the cost per hectare to $80,000. Ponds equivalent to their design could be built around the country, using wastewater streams (human, animal, and agricultural) as feed sources. We found that at NREL’s yield rates, 15,000 square miles (3.85 million hectares) of algae ponds would be needed to replace all petroleum transportation fuels with biodiesel. At the cost of $80,000 per hectare, that would work out to roughly $308 billion to build the farms.

The operating costs (including power consumption, labor, chemicals, and fixed capital costs (taxes, maintenance, insurance, depreciation, and return on investment) worked out to $12,000 per hectare. That would equate to $46.2 billion per year for all the algae farms, to yield all the oil feedstock necessary for the entire country. Compare that to the $100-150 billion the US spends each year just on purchasing crude oil from foreign countries, with all of that money leaving the US economy.

These costs are based on the design used by NREL – the simple open-top raceway pond. Various approaches being examined by the research groups focusing on algae biodiesel range from being the same general system, to far more complicated systems. As a result, this cost analysis is very much just a general approximation. Some systems could be considerably more expensive, but could also see considerably higher yields, resulting in less land being required. How exactly the economics play out will hopefully be decided over the next few years as some of these groups research algal biodiesel bring their systems to commercialization status.

IV. Other issues

To make biodiesel, you need not only the vegetable oil, but an alcohol as well (either ethanol or methanol). The alcohol only constitutes about 10% of the volume of the biodiesel. Among the most land-efficient and energy-efficient methods of producing alcohol is from hydrolysis and fermentation of plant cellulose. In the early days of the automobile, most vehicles ran on biofuels, with Henry Ford himself being a big advocate of alcohol produced from industrial hemp (not to be confused with marijuana). The Department of Energy’s “Mustard Project” has focused on the prospect of growing mustard for the dual purposes of biodiesel and organic pesticide production. Their process focused on alternating mustard crops with wheat. One nice effect of this is that the biomass from the mustard (after harvesting the seed ) could be used as the cellulose feedstock for producing alcohol for biodiesel production.


What is the energy efficiency for producing biodiesel? Based on a report by the US DOE and USDA entitled “Life Cycle Inventory of Biodiesel and Petroleum Diesel for Use in an Urban Bus”5, biodiesel produced from soy has an energy balance of 3.2:1. That means that for each unit of energy put into growing the soybeans and turning the soy oil into biodiesel, we get back 3.2 units of energy in the form of biodiesel. That works out to an energy efficiency of 320% (when only looking at fossil energy input – input from the sun, for example, is not included). The reason for the energy efficiency being greater than 100% is that the growing soybeans turn energy from the sun into chemical energy (oil). Current generation diesel engines are 43% efficient (HCCI diesel engines under development, and heavy duty diesel engines have higher efficiencies approaching 55% (better than fuel cells), but for the moment we’ll just use current car-sized diesel engine technology). That 3.2 energy balance is for biodiesel made from soybean oil – a rather inefficient crop for the purpose. Other feedstocks such as algaes can yield substantially higher energy balances, as can using thermochemical processes for processing wastes into biofuels (such as the thermal depolymerization process pioneered by Changing World Technologies). Such approaches can yield EROI values ranging from 5-10, potentially even higher.