Oilseeds and Biofuels in Washington State, 2017 Bioenergy Goals Reduce dependence on foreign oil Improve environment / public health Support WA agriculture and rural economy Mary Beth Lang, Bioenergy Coordinator
State Action Strategies Grow Process oilseed/biofuel crops at in-state crushers / refineries Incentivize investment in processing facilities Invest in cropping systems research Use in state Require biodiesel use; Ensure quality
Research investment made at WSU Washington Biofuels Cropping Systems • Initiated in August 2007. • Initial state funding was $500,000 annually, now $300,000/yr. • Rebranded in 2013: W A Oilseed Cropping Systems • 15-20 projects each year; interdisciplinary research & extension team. • Goal : Increase oilseed acreage from <1% to 10% of crop acreage by 2020. Washington State Dept. of Agriculture January 2017 3
WA canola production is significantly higher than it was prior to 2012 WA Canola Production 1987-2016 100,000 100,000,000 5-year intervals – Ag Census 1-year intervals 90,000 90,000,000 80,000 80,000,000 70,000 70,000,000 60,000 60,000,000 Pounds Acres 50,000 50,000,000 40,000 40,000,000 30,000 30,000,000 20,000 20,000,000 10,000 10,000,000 - - 1987 1992 1997 2002 2007 2011 2012 2013 2014 2015 2016 Harvested Acres Production Source: USDA, National Agricultural Statistics Service Washington State Dept. of Agriculture January 2017 4
Washington Canola Acreage, 2007 Planted Acres reported to USDA-FSA by County Washington Whatcom 9,704 acres San Juan Pend Oreille Okanogan Ferry Skagit Stevens 22 Island Clallam Snohomish 29 Douglas Chelan Jefferson 1,083 Lincoln Spokane Kitsap 1,171 590 King Grays Mason Harbor Grant 5 Kittitas 1,686 Adams Whitman Pierce 2,973 1,250 Thurston Pacific Lewis Franklin Columbia Yakima 134 Asotin 265 16 Benton Cowlitz Skamania Wahkiakum Walla Walla 22 442 Klickitat Garfield Source: Acreage Reported to USDA’s Clark Farm Service Agency 16 Prepared by Washington State Dept. of Agriculture
Washington Canola Acreage, 2016 Showing planted acres by County for 2016 and 2015 Washington Whatcom 28,311 acres San Juan Pend 2015: 31,344 acres Oreille Okanogan Ferry Skagit Stevens 415 174 641 Island 114 Clallam Snohomish Douglas Chelan Jefferson 4,249 Lincoln Spokane Kitsap 6,651 4,688 7,397 King Grays 4,447 9,139 Mason Harbor Grant Kittitas 1,629 Adams Whitman Pierce 1,506 3,926 3,279 Thurston 3,159 2,078 Pacific Lewis Franklin Columbia Yakima 30 Asotin 261 31 Benton 320 66 Cowlitz Skamania Wahkiakum Walla Walla 3 86 705 0 Klickitat 1,604 Garfield Source: Acreage Reported to USDA’s Clark 261 1,230 Farm Service Agency, as of 1/4/17 315 Prepared by Washington State Dept. of Agriculture 1,260 January 2017
WA now producing 25% of PNW canola 1,000 lbs PNW Canola Production, 2012-16 300,000 250,000 61,200 200,000 56,400 58,900 37,400 26,100 150,000 100,000 50,000 0 2012 2013 2014 2015 2016 Montana Idaho Oregon Washington Source: USDA, National Agricultural Statistics Service Washington State Dept. of Agriculture January 2017 7
WA has oilseed/biodiesel processing facilities to handle 300,000+ acres of production Oilseed Crusher Biodiesel Processor PCC REG 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. Washington State Dept. of Agriculture January 2017 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 State and federal policy – Military continue to support biofuels – Commercial Aviation Government Use Requirements
U.S. biodiesel production primarily driven by federal mandate and regional markets 2200 2000 Biodiesel Production 1800 Federal Renewable Fuel Standard (RFS) 1600 1400 Million Gallons 1200 1000 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: U.S. Energy Information Administration Washington State Dept. of Agriculture January 2017 11
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 State Agency Biodiesel Purchases B20 (summer) / B5-B10 (winter) 1,400,000 in eastern WA 1,200,000 – Per contract, biodiesel must be 1,000,000 at least 51% in-state produced 800,000 or feedstock-sourced. • Testing and use show no 600,000 B100 Gallons 400,000 biodiesel-related fuel quality 200,000 issues. - 2008 2009 2010 2011 2012 2013 2014 2015 2016 Washington State Dept. of Agriculture January 2017 12
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
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