Biofuel Archives - F.E.S. TANKS

What does the Biofuel Mandate mean for Australian Transport Operators?

lots of volvo trucks in a line from Australian transport-operators

Australian Transport Operators, are you prepared for the biofuel evolution?

WITH new laws mandating the sale of biofuels set to take effect in NSW and QLD in January, during one of the road transport industry’s busiest times of year, it’s worth considering your fuel storage options if you run a heavy vehicle fleet.

In both states, affected servos will have a target of converting 0.5 per cent of their diesel sales volume to biodiesel, which means B5 will need to account for about 10 per cent of all diesel sales.

The new laws will affect fuel retailers in both states from January 1. The good news is that the change is unlikely to cause serious issues for the transport industry, with most modern vehicles able to perform well on B5 biodiesel blends without a problem. However they do mean it’s worth some extra effort when it comes to fuel storage and fuel systems maintenance.

What do biofuels mandates mean for Australian transport operators?

If you run a fleet of trucks, the impact of the biofuels change will depend on the vehicles you use and on how you manage your fuel and refuel your fleet.

For some, biofuels blends are already a major part of their operations. In South Australia, Peats Soil has worked closely with Adelaide University and Scania to develop a fleet which runs on 100 per cent biodiesel. The upside is reduced emissions and a reduced reliance on conventional suppliers.

On the other hand, for conventional fleets biofuel blends can lead to an increased risk of particulate matter travelling through fuel systems, and it is here that care needs to be taken. Poorly maintained diesel fuel is responsible for about 80 per cent of engine failures in the transport industry, and with a new diesel engine costing an average $8000 to overhaul, prevention is definitely better than cure.

In general, blends above B5 may require specialist engine maintenance but using a low blend will make very little difference to performance for most transport fleets. Potential issues can be minimised with proper maintenance regimes and improved fuel management to reduce fuel contamination.

Biodiesel storage and reducing fuel contamination

With Australian approvals for high-performance heavy vehicles reaching new heights in July-September, keeping your fuel in top condition will be more important than ever. Latest generation fuel injectors in diesel engines mean improved performance, but also increased sensitivity, so the experts advise spending a little extra time on getting the basics right.

Because biodiesel blends are able to absorb more water, making sure the fuel you buy is properly stored is the first step.

If you’re storing your own fuel it’s essential to test fuel quality regularly. Diesel bugs flourish at the interface between water and fuel and can spread rapidly, causing fuel to separate and generating particulate matter that can be deadly for high performance diesel engines.

Using a diesel biocide when you refill tanks is highly recommended. If you’ll be storing a biodiesel blend for longer than three months it’s also recommended that you ensure the tank is filled to minimise opportunities for water absorption from the air, which will in turn create more opportunities for diesel bugs to spread.

Biodiesel blends also tend to clean fuel systems, loosening dirt and old fuel deposits and carrying them to the vehicle’s fuel filter.

While the effects of this are minimised in low blends, these changes still happen over time, particularly in older vehicles. Mechanics recommend that fuel filters in older vehicles be replaced after every few tanks of biodiesel blend. There’s also a small risk of fuel system components like seals, hoses and gaskets degrading, so it’s important to check components regularly.

At the storage end, tanks should be flushed and cleaned before they are used to store a biodiesel blend, particularly if there has been diesel bug contamination.

The right tank makes the difference

Ensuring the integrity of your fuel storage tanks – making sure they are free of leaks and corrosion – is easy when you’re using the right tanks.

F.E.S. TANKS produces a range of self-bunded, low maintenance transportable tanks for the transport industry, with easy access manholes to make it cleaning and testing easy.

Our tanks are designed to keep biofuels safe in an environment that is efficient, reliable, durable and controllable.

We also provide a range of diesel biocides, and our expert technicians can give you the advice and support you need to ensure your fuel storage and fuel management systems will keep your business running at maximum efficiency.

If you should require any advice please don’t hesitate to get in touch. Contact us today.

Biofuel Trucking & Logistics

The Storage of Ethanol Fuel. The Pros and Cons.

FIRST NSW and Queensland, then the nation – after a rocky start, ethanol fuels are back in the headlines and in the fuel pumps with more legislative support than ever across Australia.

Both Queensland and NSW made announcements around the issue in December, and in February North Queensland MP Bob Katter brought the issue to Federal Parliament with his Renewable Fuel Bill 2016, which proposes that all petrol sold nationwide should contain a minimum 5 per cent ethanol from 2019.

In Queensland, a 3 per cent ethanol mandate will take effect in January 2017, increasing to 4 per cent in July 2018, and in NSW the government has announced reforms to increase compliance with its 6 per cent mandate, introduced in 2007.

The changes mean Australia is following in the footsteps of much of the developed world – so what are the lessons we can learn from international experience? What will the growth in biofuel mean for business, and what’s the best way to prepare?

Ethanol in petrol – it’s not new
The first surprise is that ethanol-blended fuel is not new.

It’s as old as the automobile, with the original Model T Ford designed to run on either ethanol or gasoline.

In fact, Henry Ford believed biofuels would eventually become America’s primary fuel source, and as early as 1925 he was paving the way.

His dream was put on hold with the economic crisis affecting farming, followed by the Great Depression, and later models lost the ethanol capacity.

However blends continued to be used at various times and in the USA the biofuel came to the fore again when leaded petrol was phased out in the 1970s, and the search was on for an oxygenate to replace the octane lost in the process.

Initially methyl t-butyl ether (MTBE) was a popular additive, until serious groundwater contamination issues led to the search for a new and easily produced alternative, and ethanol fit all the criteria.

Easily made from corn and other plants it has a high octane content and is easy to transport safely.

In the United States, virtually all on-road petrol now contains ethanol in concentrations from 10-85 per cent.

In Australia, the transition from leaded petrol happened in the early 2000s, and with the introduction of the National Standards for Fuel Quality in 2002 the shift towards a cleaner burning fuel began.

So far uptake has been patchy – Shell withdrew E10 from sale at 63 service stations in Victoria in 2011 because of poor demand- but the recent flurry of activity suggests Australia has well and truly entered a new era when it comes to biofuels on our roads.

Caltex introduced an E85 blend as part of an agreement with Commodore, but Holden later dropped the renewable fuel compatibility and production was scaled back due to poor demand.

THE GOOD

There’s plenty for motorists to like about E10 fuel.
It’s cheaper at the pump, and as an oxygenate it reduces emissions from petrol, so it’s good for our air quality.
It’s popular with politicians on an environmental basis because it reduces oil consumption, while others have argued it will provide a new key market and better prices for grain and sugar growers and boost our fuel security with a new, locally made fuel alternative.

THE BAD

On the downside, there are a few key issues that could mean extra costs for business if they’re not addressed early.

Poorer fuel economy:

Ethanol has about 30 per cent less energy than petrol, which means less miles to the tank.

For the average consumer this means they’ll need to fill up more frequently, because they’ll get 3-4 per cent less mileage – probably costing a couple of hundred dollars a year extra, which is hopefully partly offset by the fuel’s lower retail price.

However for business, particularly fleet operators, the extra costs can be significant.

Fortunately one mitigating factor here is the better fuel efficiency of modern vehicles, many of which are designed to operate with fuel blends.

Material damage:

When ethanol comes into contact with seals, rubber lines, plastic and polymer it dissolves them.

This is a particular concern for small engines, and companies that use fuel for small equipment like mowers, trimmers and edgers.

For two-stroke engines that need lubrication, the extra water content in ethanol blends (because ethanol absorbs water) can cause catastrophic engine damage.

In the United States the implementation of the ethanol mandate and the widespread use of blends with a higher percentage of ethanol, like E15, coincided with a sharp uptake in demand for small engine repairers.

Small engine manufacturers are now warning people not to use blends higher than E10 in small engines, and the issue has become such a concern that it’s a major aspect of the congressional debate over whether to legislate for a higher percentage of ethanol in all fuel.

Water issues and phase separation

The extra water absorption capacity of ethanol and ethanol blends is a serious concern for businesses worried about the five or six figure capital cost of fuel storage systems.

Storing ethanol correctly means making adjustments – as a rule, ethanol blends have a storage life of as little as 28 days compared with as long as two years for regular petrol.

A major issue is phase separation, which is the separation of the water-alcohol layer from the fuel.

Petroleum can absorb a limited amount of water.

Ethanol can absorb more.If the petrol’s absorption limit is exceeded, the alcohol will drop out of the fuel, leaving a layer of ethanol-rich water beneath the petrol.

The process causes major problems because it strips the petrol of its octane value, meaning it may not burn properly – a serious problem for mission critical operations.

There’s also the risk that if the engine burns through the fuel layer and draws from the ethanol and water mix, serious valve and engine damage can occur.

THE UGLY

Corrosion….

For business, though, the primary concern in the switch to ethanol is correct storage.

Because ethanol attracts water, tanks become corroded through exposure to water and the usual rusting processes.

However a second problem occurs because ethanol provides an excellent food for microbes, and when they consume the fuel they produce acetic acid that vaporises and corrodes parts both above and below the fuel line.

Experience shows that if there’s corrosion above the fuel line in tanks storing ethanol blends, there’s likely to be even worse damage below, potentially posing serious environmental and safety risks as well as a threat to the bottom line through fuel loss.

It’s these issues that have caused concern among small service station operators worried about the need to upgrade infrastructure and possibly replace tanks to deal with the new mandates.

The Solutions – Survive and Thrive

Protecting Engines

If your business is a major user of small engines or petrol-powered equipment, you can avoid the corrosion of rubber parts and engine exposed to high ethanol blends by draining fuel tanks before storing your tools, to minimise exposure.If you’re using ethanol blends in small engines you can also treat the fuel with a multi-function protectant which creates a boundary layer between the fuel and the engine parts.

Maintaining Fuel Integrity

Anyone storing significant amounts of biofuel will be affected by phase separation. Again, as well as ensuring your tank and fittings are appropriate for keeping your fuel fresh and avoiding reactions, a fuel treatment is a good option.Look for one that provides detergency and improves the fuel’s ability to absorb water (delaying separation).

Watching for Water Damage

Flowing on from that, check tanks regularly for water (at least once a month). A good water finding paste makes this easy, and any water can be drained from the bottom of the tank, prolonging fuel life and avoiding spoiling and potentially serious fuel failures.

Protecting your Storage Tanks

It’s essential to check your fuel storage tanks regularly for the tell-tale signs of corrosion resulting either from high water content or the presence of microbes producing acid vapours.

Check above and below the fuel line.

Applying a biocide to control microbial growth is an important preventative measure – remember, you’ll need to reapply every time you refill the tank.

You can also treat your tank with an anti-corrosion treatment for boundary protection. Try to avoid using the same tanks for different types of fuel, as this increases the chances for cross-contamination from different microbe varieties.

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Biofuel Industry in Australia

Biofuels, a fuel of the future

ANOTHER Australian state has leapt on the biofuels train, with the Queensland government this month introducing legislation to set mandatory targets from July 2016.

The new laws, which follow NSW legislation enacted in 2007, mean that from January 1 next year retailers will have to report on how much biofuel they have sold as a percentage of total sales.

From July 1 they will need to meet mandatory targets of a minimum 2 per cent for ethanol-petrol blends and 0.5 per cent for biodiesel.

“This will support the development of a sustainable biofuels industry that can help Queensland transition to a clean energy economy, contribute to regional growth and job creation and promote the development of an advanced bio-manufacturing industry,” Energy and Water Supply Minister Mark Bailey told parliament.

The Department of Energy and Water Services says about 345 Queensland petrol stations already sell ethanol blends, while the use of diesel statewide is growing by 9.3 per cent per year.

There’s not yet any measure of biodiesel usage. Up to 5 per cent biodiesel can be blended with regular diesel and this B5 blend is already sold by several major fuel chains and does not need to be labelled, as all diesel sold must meet the national Diesel Fuel Standard.

Industry response

High profile businessmen like Virgin boss Sir Richard Branson have supported the move to biofuels and continue to urge further investment in the industry – and in Branson’s case, put their money where their mouth is – but for retailers and suppliers reporting costs and storage issues are among their concerns.

Australasian Convenience and Petroleum Marketers Association chief executive Mark Mckenzie said a major concern was that any retailers who sell upwards of one million litres of petrol products each year will be liable, meaning smaller businesses will bear the costs of changing storage and dispensing infrastructure.

“While economic benefits would potentially be realised by some agricultural businesses, these would be more than offset by the fact that regional communities will likely be required to pay higher prices for fuel as regional fuel businesses seek to recover the cost of increased investment in fuel storage and dispensing infrastructure,” he said.

Biodiesel fuel – benefits and drawbacks

Biodiesel can be made from a variety of stocks including vegetable oils like soy and canola, tropical seeds and animal fats.

It is made by separating the glycerine molecule from the oil or fat through a process called transesterification.

One benefit for storage is that Biodiesel has a higher flashpoint than petroleum diesel, with a flashpoint of around 150 C or higher compared to 52 C for petroleum diesel.

This stability makes it particularly attractive for sectors like the underground mining industry, where the implications for workplace safety are hard to ignore.

International research also shows plenty of positives as far as public health and emissions reduction. Diesel emissions are a growing concern and with diesel use in Australia on the rise, governments in every state are keen to increase the biodiesel component to reduce toxic air pollutants.

On the flipside, the different molecular structure of biodiesel fuel can make it more susceptible to a range of quality issues.

The good news is that proper storage and treatment from the start can make all the difference.

Storage problems

Good quality biodiesel can degrade quickly without proper care during transport and distribution, meaning a failure of storage systems can have significant implications for retailers, distributors and the end buyer.

On the upside, the ability to degrade quickly means the environmental threat is lower in case of spills, and clean-up is easier.
The downside is that issues like storage temperature and exposure to light are important. Biodiesel can gel and become sluggish at higher temperatures than petrodiesel, with some varieties more affected than others.

In general, pure biodiesel made from vegetable oil can safely be stored at 7-10 C. In cold climates, underground tanks can help insulate and prevent gelling.
Above-ground tanks may need to be heated or insulated in particularly harsh environments.

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Store biodiesel away from air and light

One of the major influences on biodiesel storage life is exposure to oxygen and light. While these issues are minimal for diesel blends that remain mostly petroleum-based, it’s worth being aware of them if you plan to use purer blends.

Because it’s made from vegetable or animal fat, biodiesel in its purer forms is much more susceptible to breakdown and degradation due to oxygen exposure. Fuels made from vegetable oils tend to oxidise and degrade more quickly than those made from animal fats.

This leads to acids forming, thickening of the fuel, sedimentation and the potential corrosion of storage tanks and parts. Any process that removes the natural oxidants from the oil – including bleaching, deodorising and distilling – will speed up this oxidation process.

Tanks designed to store and transport petro-diesel can usually store biodiesel with no problem, providing they have been fully cleaned.

Biodiesel will break down any sediment remaining in the tank, creating sludge in the fuel.

Tanks made from or held together with copper, brass, lead, tin or zinc will react with biofuel to speed up the oxidation process, so it’s best to avoid these materials.

Recommended storage tanks to extend fuel life include those made from aluminium, steel, polyethylene, Teflon and most fibreglass.

Adding a stability agent is also recommended in climates like Australia’s if the fuel is to be stored for longer than a few months.

B100 (100 per cent biodiesel) can also degrade some hoses, gaskets and seals, glues and plastics. Hoses should be made from Teflon or nylon to avoid potential issues. It’s a good idea to ask your supplier if the equipment is suitable for pure biodiesel or high biodiesel blends.

Blends of 20 per cent or less are far less likely to have an effect, but regular monitoring of hoses and gaskets is recommended in line with industry best practice.

Microbial contamination and water

All diesel can be affected by microbial contamination, and biofuel is a favourite food of micro-organisms.

Microbes usually need water and nitrogen to flourish.

Biodiesel can absorb large amounts of water – up to 1500 parts per million- and after that limit the excess remains as free water which causes rust and allows microbes free rein.

Water contamination in tanks can reduce the fuel’s usable storage life dramatically, and while a biocide might kill the microbes it could be too late to save the fuel. The dissolved water can also cause problems over time and lead to acids forming in the fuel, which can corrode tanks – an avoidable cost with the right tanks and proper care.

To minimise water issues storage tanks should be cleaned and dried before they are used for biodiesel.

Experts like the University of Idaho’s Jon van Gerpen recommend keeping the smallest possible air space above the fuel. About 2 per cent is recommended to allow for thermal expansion.
Draining free water from the tanks regularly is recommended. It’s worth considering this when looking for tanks, and choosing one with easy access for testing, refilling and maintenance.

Too much space can allow the biodiesel to accumulate more water from the air. Wherever possible, the fuel should be stored in full tanks with an airtight seal.

Using a biocide and a stability agent can also provide a second line of defence against contamination and block the chain reactions that cause degradation. The best option, though, is to use fuel quickly – within a few months.

Weighing it up

All in all, the expert consensus is that while storing and transporting biodiesel might mean some checks and changes, there are also long-term advantages across industries and markets.

If you need to store fuel for long periods a bio blend may not be your best option, but with states around Australia increasingly seeking to implement mandatory targets, and major oil companies taking on the challenge, it’s worth asking your supplier and planning now to ensure the smoothest possible transition when the time comes.

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