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Almost daily, we are confronted with news that the price of oil has reached another new high. The energy resources prices are affected by many factors, ranging from supply and demand to worldwide geopolitical situations. Our nation’s dependency on oil and the economic impact of recent price increases of gasoline on families and businesses have renewed interest in using and developing alternative fuels and alternative fuel technology.
The Big 2 – Grains and Proteins
In Maryland, the two alternative fuels that are seeing the biggest growth are ethanol and biodiesel. Both of these fuels are renewable and domestically produced, and the Maryland Department of the Environment (MDE) has looked into these fuel sources. Biodiesel is most commonly produced from either soybeans or other vegetable oils. Ethanol is produced from locally grown crops such as corn or barley.
Ethanol is most commonly blended with gasoline in two ways, producing two distinct fuels – reformulated gasoline and E85. Reformulated gasoline is a petroleum-based fuel with approximately 10 percent ethanol added as an oxygenate (an oxygenate reduces the amount of unburned hydrocarbons and carbon monoxide in the exhaust).
Replacing MTBE
Beginning this past May, most gasoline sold in Maryland is now a blend, with 10 percent ethanol. This is a result of the Energy Policy Act of 2005, which created a Renewable Fuels Standard (RFS) mandating the increased use of renewable fuels, primarily ethanol and biodiesel. The RFS essentially ensures that ethanol will replace methyl tertiary butyl ether, or MTBE (used as an oxygenate), a gasoline additive that has lead to concerns about groundwater contamination. This E10 gasoline blend is widely used in larger, urban metropolitan areas.
Another fuel blend, E85 is an ethanol-based fuel containing 85 percent ethanol and 15 percent gasoline. Standard vehicles can run on a 10 percent blend without any engine modifications, while flex-fueled vehicles are capable of operating on reformulated gasoline (the E10 blend), E85, or any combination of the two fuels.
Available in Regular, High-test and Field Corn
During the past year, automakers General Motors and Ford have begun to increase their production of flex-fueled vehicles. Ford Motor Company recently began its advertising campaign touting ethanol-fueled vehicles with a print ad showing an open gas cap with several ears of corn inside – “Now available in regular, high test and field corn.”
Like ethanol, biodiesel is most commonly used in two blends. B5 which a blend of five percent biodiesel and 95 percent petroleum diesel, and B20, which is 20 percent biodiesel and 80 percent petroleum diesel. In general, B5 and B20 can be used in all diesel vehicles without major modifications. Recently, Governor Robert L. Ehrlich, Jr. signed legislation that requires Maryland fleet vehicles to use five percent biodiesel blended fuel beginning in July 2007.
Renewable Fuels Act
The Maryland General Assembly also passed legislation to increase the production of alternative fuels in the state. On May 15, 2005, Governor Ehrlich signed Senate Bill 740, “The Renewable Fuels Act of 2005” into law. This law establishes state financial incentives to produce both ethanol and biodiesel fuels. Combined with federal credits, the incentives should provide an attractive economic stimulus for the production of ethanol in Maryland.
Development: a Good Thing
Over the last year, several developers have expressed interest in building ethanol and biodiesel manufacturing plants in Maryland. The developers are scouting existing industrial sites and other properties conducive to developing of ethanol and biodiesel manufacturing facilities.
MDE is actively working with these interests and other state agencies to bring alternative fuel production to our state, while continuing to protect Maryland’s air, water and land resources. In fact, Maryland welcomed its first biodiesel production facility in June 2006. Located in Berlin, Maryland, the facility is capable of producing 500,000 gallons of biodiesel annually. The Berlin facility intends to increase its biodiesel production to one to two million gallons annually, possibly as early as this September.
The effort brought together a powerhouse of agencies, including MDE, the Maryland Energy Administration, the Maryland Grain Producers Association, the Maryland Departments of Agriculture and Business and Economic Development, and the U.S. Department of Energy to increase the use of alternative fuels in Maryland and expand the fuel infrastructure. Several ethanol and biodiesel stations have opened, with more planned. To ensure the success of alternative fuel stations, maximize the use of the fuel and keep the costs competitive with petroleum, large volume users, (such as public and private fleets) were approached to install the alternative fuel infrastructure. Identified fleet users can hope to find new stations, to the extent possible, co-located with existing gasoline facilities to minimize installation expenses.
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