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Are Biofuels Bad for Your Budget?

Posted September 30, 2013 10:18 AM by Doug Sharpe

Do biofuels increase the cost of food? Across North America and Europe, biofuel industry groups claim that commodities speculation and high fossil fuel prices are to blame for price hikes at supermarkets. High temperatures and drought are also factors, explain agricultural economists. But is there more to the story?

Mandates, Targets, and Arguments

In 2012, the U.S. Environmental Protection (EPA) rejected a request by eight state governments to halt federal ethanol mandates, which require the blending of corn-based fuel into gasoline. In an e-mailed statement, the EPA rejected the claim that using crops for fuel had caused "severe economic harm".

In Europe, the EU Parliament has also rejected calls to end a requirement to use biofuels. In a recent compromise that critics call "desperately weak," the Brussels-based body approved a 6% cap on the contribution of biofuels to Europe's renewable transport energy target of 10% by 2020.

Environmentalists dressed-up like ears of corn to protest the EU's policy, and pointed to a 2012 UN Food and Agriculture Organization (FAO) report linking higher food prices to increased demand for biofuels. Activists also claimed that biofuels cause increased carbon emissions and deforestation.

Biodiesel and Engine Maintenance

As the co-owner of a company with customers that may burn biofuels, I'd like to examine another aspect of this debate. Businesses that maintain diesel-powered equipment need to consider that petroleum diesel and biodiesel have different chemical properties. So while biofuels may reduce emissions, some blends could damage rubber components and harm your engine.

Let me back up a bit - especially before CR4's biofuel supporters take offense. Recently, a customer reported that a rubber door seal on a fuel tank had failed after several weeks. Fuel splash and vapor caused the custom gasket to disintegrate, sending small pieces of rubber through the fuel line and clogging the engine. Did the customer switch from petroleum diesel to biodiesel?

Extensive testing revealed an issue with the seal material (and not the fuel), but the incident prompted us to ask for opinions in the Sealing Technology Group on LinkedIn. The resulting dialog covered topics ranging from chemical compatibility and batch tolerances to tribology to synthetic fuels. Here's hoping we can have another great conversation here on CR4.

Material Selection and Chemical Compatibility

As a manufacturer of high-performance materials for the petrochemical industry explained, most biofuels are a mixture of fatty acids. Created by the reaction of natural oils with triglycerides and ethanol or methanol, biofuels aren't long-chain hydrocarbons like in distilled crude diesel. The presence of a polar species in the fuel, this expert explained, could cause a rubber seal to swell or degrade.

The general manager at maintenance and repair organization (MRO) offered a different perspective. If the fuel in the tank wasn't biodiesel, was it ultra-low-sulfur diesel (ULSD)? Perhaps the mechanics added an agent to replace lost lubricity, or to help keep the fuel injectors clean. In marine environments, anti-biological agents that prevent the growth of algae can also affect seal life.

Conclusions

So are biofuels bad for your budget? Do they increase the cost of food and the likelihood of expensive engine repairs? Hopefully, these questions will spark a lively debate. Yet I hope this blog entry will also encourage you to consider the so-called "food vs. fuel" debate in a different way.

If you're thinking of changing from petroleum diesel to biodiesel, are your fuel door seals and engine seals also ready for the switch?

About the Author: Doug Sharpe is the President of Elasto Proxy, Inc. (Boisbriand, Quebec, Canada), supplier of sealing solutions and custom-fabricated rubber and plastic parts to a variety of industries, including automotive and mobile specialty vehicles.

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#1

Re: Are Biofuels Bad for Your Budget?

09/30/2013 11:51 AM

I personally think it's rather early to label biofuels as simply "good" or "bad," but I think legislating biofuel mandates need to be reconsidered, especially in times of drought or food shortage. I personally haven't seen any hard numbers to back up the extent of the inflation of corn, sugar, palm, etc., but it definitely seems to have some effect.

It should be a matter of, "What's more important to our economy/society?" Sustainable, affordable food supply, or low carbon emissions and a better value from our fuel supply? What came first?

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#2
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Re: Are Biofuels Bad for Your Budget?

09/30/2013 7:42 PM

I grew up in farming country and I can assure you that by far politics has more influence on what gets planted and how more so than environmental issues.
There are millions of acres of good high quality crop lands never used because farmers are getting paid to not use them. Thats what the CRP system does. The government pays you to not use your farmland.
As far as farmers are concerned they pant what pays the best so if more corn is needed for ethanol they will plant more if the numbers work in their favor. If not they will either keep taking their CRP payments or plant something else.
BTW the corn varieties used for ethanol production are not the same varieties used for human food production. There is more than just one type of corn out there.

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#3

Re: Are Biofuels Bad for Your Budget?

10/01/2013 3:44 AM

Here'a a biofuel-powered engine type that has been used for centuries:

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#10
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Re: Are Biofuels Bad for Your Budget?

10/01/2013 1:04 PM

I see it has a muffler on one end, but...

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 7:05 AM

I just dropped my, (non-running), chainsaw off yesterday, to be fixed. I'm paying someone else to do it, because I don't feel like tearing it down again. The good news is, that I've found a close source of non-ethanol fuel.

Ethanol is neither good or bad; government makes things bad, by forcing us into them without thinking about the consequences.

Here's what the lobbyists have to say:

http://www.ethanol.org/news/?newsid=4

Not exactly accurate, but they have direct access to the politicians.

They think of everything...

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 9:09 AM

Kramar.

I'm on my second Husky chainsaw in 22 years. (first one lasted 16 years.) I cut and burn a lot of wood. I've always used unleaded pump fuel, always with ethanol, I assume, since it always says it has ethanol at the pump. I service my tools regularly. I don't leave fuel in the tank more than a month with out using the saw. I have had no problems. Why? I'm lucky I guess. I also have 2 two stroke 250's I mix full synthetic two stroke oil with. No fuel issues, just crash issues. my 2002 is a rocking motor.

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 9:28 AM

I had a used Stihl that lasted me 20 years, including ethanol years, with no problems.

This is a new Stihl that I bought last year. I don't know what's going on. I have done nothing different, but I am having problems with my string trimmers, chainsaw, and Yamaha boat motor. My 12 year old Craftsman lawnmower still works okay, although a little rough sometimes.

These problems have all started within the last couple of years. Given that nothing else has changed, I can only assume that something about the blend is different. I'm going to stop using ethanol gasoline in all of these items, and I'll know for sure, if they all of a sudden start and run properly.

My pressure washer also runs fine with ethanol. 13HP Honda engine.

My boat motor is a four stroke, but I know that there have been lots of problems with boat motors. Other than that, it seems to be the 2 stroke stuff that really doesn't like it.

On ethanol mandates in general...I would like to see a comprehensive study on exactly how they have benefitted us.

PS- My guess, is that phase separation happens in the storage tanks at gas stations, with some having more contamination than others; so it's hit or miss on getting getting clean, fresh gasoline. One bad batch can foul a carburator.

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 9:33 AM

I have a two stoke outboard, and the marina store sells pure petrol gas for my mix, so i use it. I run it out before I put it up also. Hopefully, the new equipment coming out is more robust, but it almost sounds like the opposite. Good luck!

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 9:51 AM

A huge market has been created for selling fuel additives, parts, and small engine repairs. It's called job creation.

It's far more lucrative than making small engines and carbs that can handle ethanol.

Given that a 10% blend, drops mileage about 10%, it seems like a wash; and that's before considering the cost of growing the corn, processing it into alcohol, and transporting it all over the country.

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 11:49 AM

I drive mostly Fords and so far they seem to have no problems with running ethanol blends. Even with using E30 now quite regularly I have not had any noticeable drops in fuel mileage numbers or fuel related issues ever.

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 1:39 PM

This says the same, but there is no mention of the subsidies involved with ethanol, which were in place at the time of the test.

http://www.ethanol.org/pdf/contentmgmt/ACEFuelEconomyStudy_001.pdf

I also think that cars that weren't designed to run on ethanol blends have more problems and mileage differences.

You may be getting "fresher" ethanol than I am, too. I don't have any plants near me, and I wonder how long it's been around before I put it in my tanks.

http://www.neo.ne.gov/statshtml/122.htm

If there are no noticable differences, I think they should mandate it's use in small planes.

This is from a government site.

AIRPLANES

Can ethanol-blended gasoline be used in small aircraft engines?

Ethanol-blended gasoline should not be used in small aircraft engines. Most small aircraft engines manufactured in North America are designed to run on aviation gasoline (avgas), which has a much higher octane rating than automotive gasoline. While some of these engines can be modified to run on regular automotive gasoline, owners/operators of small aircraft are advised that ethanol-blended gasoline should not be used in their aircraft, as ethanol can degrade some rubber and elastomeric fuel system components (e.g. gaskets, seals). Owners/operators who use regular automotive gasoline in their aircraft are encouraged to check with their fuel supplier to ensure that their gasoline does not contain ethanol.

Individuals who want more information on the use of ethanol-blended gasoline in their aircraft are strongly encouraged to check their owners' manuals and contact their engine manufacturer to discuss what engine modifications may be required to safely use ethanol-blended gasoline in their aircraft.

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#12

Re: Are Biofuels Bad for Your Budget?

10/01/2013 1:55 PM

Thank you, all, for the many great comments. I wonder if the protesters who dressed up like ears of corn know that the types used in ethanol aren't the same ones that humans eat? I know that I learned something here today!

The politics and ethics of biofuels are important, of course, and it's good to discuss them. Personally, however, I'm most interested in the economics - especially at the micro level.

So when I read kramarat's comments about ethanol blends and engines, I wonder if biofuels will be "bad" for maintenance budgets. Companies may switch to biofuels with the best intentions, but then find that downtime is hurting their bottom line.

With regard to PFR's comment, does anyone know if new industrial engines and equipment are being marketed as "biofuel safe" or "biofuel compatible"? More to the point, are these claims accurate based on your experience?

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 3:20 PM

It depends on what kind of company, and the equipment they are running. If I were a landscaping company, I'd avoid ethanol at all costs.

As with most government mandates, there are always people that quickly figure out how to make a lot of money from them...including the small equipment manufacturers.

It would be easy to make their stuff ethanol ready, but there's far more money in parts and rebuild kits.

http://www.youtube.com/watch?v=B-3Tnx1HSRQ

I'm going to stop using it in anything but my cars.

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 9:59 PM

"I wonder if the protesters who dressed up like ears of corn know that the types used in ethanol aren't the same ones that humans eat? I know that I learned something here today!"

The easiest way to identify what a corn crop is intended for it simply count the number of ears on a single plant stock.

One or two it's commercial application corn like what ethanol production or animal feed is made from. 3 - 5 ears it's most likely human consumption corn like the varieties that grow in a garden.

Now you know as much about identifying corn as I do.

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Re: Are Biofuels Bad for Your Budget?

10/02/2013 7:56 AM

I always thought that it was about the amount of real estate that is dedicated to ethanol, rather than food.

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Re: Are Biofuels Bad for Your Budget?

10/02/2013 12:14 PM

Not really.

This is easy to read and has the numbers in easy to understand formats.

The basics of corn production.

The vast majority of corn is 'dent' corn of which only around 9% gets processed for base stock in human consumption applications.

Animal feed takes about 42% with ethanol taking 22% surplus holding 10% and the remaining 17% of annual production going overseas.

Acreage wise 85 - 95 million acres of corn are planted every year with varieties like sweet corn intended directly for human consumption only being around 350 - 400,000 acres or about .35 - .5% of the gross total acreage planted.

Now the interesting thing is CRP presently has around 25 - 30 million acres of former cropland paying farmers to not use it. That's roughly 1/3 of the acreage annual corn production takes up.

Acres of CRP in the US.

Land usage in the US by percentage.

Arable land in the US

Farmland and who is using it.

Farmland usage.

All things considered at the moment corn crops are only taking up about 8 - 9% of the total readily farmable land in the US (~1% being for actual human consumption) of which in itself is presently using about 60 - 70% of the capable arable land that could be put to use for farming practices.

So no. The main issue is market value and politics. The actual land usage and availability has little to do with it.

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#19
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Re: Are Biofuels Bad for Your Budget?

10/02/2013 12:22 PM

Eventually, everything comes around to money and politics.

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Re: Are Biofuels Bad for Your Budget?

10/02/2013 12:24 PM

And the gullible people who don't bother to educate themselves about the very things they are fussing about. They and that are the greatest problem.

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Re: Are Biofuels Bad for Your Budget?

10/02/2013 2:29 PM

Ignorance has no political affiliation. It serves all politicians equally.

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#14

Re: Are Biofuels Bad for Your Budget?

10/01/2013 3:57 PM

Biofuel has saved me from 2.00/gal to 3.50/gal for the last 5 years. And the net result has been a quieter running '95 F250/w 7.3 diesel.

The cost of oils and alcohols rising is directly related to the FED's policy of currency 'easing', i.e. 'QE1, QE2, QE3' and the continued printing of appx. 85 million/mo. which dilutes our currency and inflation. THIS is bad for your budget.

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Re: Are Biofuels Bad for Your Budget?

10/01/2013 5:38 PM

Proof that all biofuels are not the same. Biodiesel is a completely different animal than ethanol, and it doesn't absorb water. I can't think of anything bad about biodiesel; it's a great way to get rid of used cooking oil.

If they could find a way to keep water out of ethanol, I think that would be fine too.

I don't really have a problem with ethanol, but I'd like to know what the actual return on investment is. It's bad news for small engines, and people like me, that only use them occasionally.

I think I remember reading about an algae that created ready to burn biodiesel. Now that's cool.

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Doug Sharpe (1); geraldpaxton (1); HUSH (1); kramarat (8); PFR (2); PWSlack (1); StandardsGuy (1); tcmtech (6)

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