Oilseeds and Biofuels

in Washington State, 2017

Mary Beth Lang, Bioenergy Coordinator

Bioenergy Goals

Reduce dependence on foreign oil

Improve environment / public health

Support WA agriculture and rural economy

State Action Strategies

Processat in-state crushers / refineries

Usein state

Growoilseed/biofuel

crops

Invest in cropping

systems research

Incentivize investment

in processing facilities

Require biodiesel use;

Ensure quality

Research investment made at WSU

• Initiated in August 2007.

• Initial state funding was

$500,000 annually, now

$300,000/yr.

• Rebranded in 2013:

WA 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 Biofuels Cropping Systems

January 2017Washington State Dept. of Agriculture 3

WA canola production is significantly higher than it was prior to 2012

Washington State Dept. of Agriculture January 2017

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

1987 1992 1997 2002 2007 2011 2012 2013 2014 2015 2016

WA Canola Production 1987-2016

Harvested Acres Production

5-year intervals – Ag Census 1-year intervals

Ac

res

4

Source: USDA, National Agricultural Statistics Service

Po

un

ds

Washington Canola Acreage, 2007Planted Acres reported to USDA-FSA by County

Yakima16

Okanogan22

Grant

1,686

King

Ferry

Lewis

Chelan

Kittitas

Lincoln

1,171

StevensSkagit

Adams

2,973

Klickitat

Benton22

Whitman

1,250Pierce

Clallam

Whatcom

Douglas

1,083Spokane

590

Jefferson

Snohomish29

Skamania

Franklin134

Cowlitz

Pacific

Grays

Harbor5

Mason

Clark16

Pend

Oreille

Walla Walla442

AsotinColumbia

265

Garfield

Thurston

Kitsap

Island

Wahkiakum

San Juan

Source: Acreage Reported to USDA’s Farm Service Agency

Prepared by Washington State Dept. of Agriculture

Washington

9,704 acres

Washington Canola Acreage, 2016Showing planted acres by County for 2016 and 2015

Yakima

Okanogan415641

Grant

1,6291,506

King

Ferry

Lewis

Chelan

Kittitas

Lincoln

4,6884,447

Stevens174114

Skagit

Adams

3,9263,159

Klickitat261315

Benton30

Whitman

3,2792,078

Pierce

Clallam

Whatcom

Douglas

4,2496,651 Spokane

7,3979,139

Jefferson

Snohomish

Skamania

Franklin3031

Cowlitz

Pacific

Grays

Harbor Mason

Clark

Pend

Oreille

Walla Walla705

1,604

Asotin6686

Columbia261320

Garfield 1,2301,260

Thurston

Kitsap

Island

Wahkiakum

San Juan

Source: Acreage Reported to USDA’s Farm Service Agency, as of 1/4/17

Prepared by Washington State Dept. of AgricultureJanuary 2017

Washington

28,311 acres2015: 31,344 acres

WA now producing 25% of PNW canola

Washington State Dept. of Agriculture January 2017 7

Source: USDA, National Agricultural Statistics Service

26,100

61,200

56,400

37,400

58,900

0

50,000

100,000

150,000

200,000

250,000

300,000

2012 2013 2014 2015 2016

PNW Canola Production, 2012-16

Montana Idaho Oregon Washington

1,000 lbs

WA has oilseed/biodiesel processing facilities to handle 300,000+ acres of production

Biodiesel Processor

Oilseed Crusher

REG PCC

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.

January 2017Washington State Dept. of Agriculture 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

– Military

– Commercial Aviation

Government Use Requirements

State and federal policy

continue to support biofuels

U.S. biodiesel production primarily driven by federal mandate and regional markets

January 2017Washington State Dept. of Agriculture

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Mill

ion

Gal

lon

s

Biodiesel Production

Federal Renewable Fuel Standard (RFS)

11

Source: U.S. Energy Information Administration

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

B20 (summer) / B5-B10 (winter)

in eastern WA

– Per contract, biodiesel must be

at least 51% in-state produced

or feedstock-sourced.

• Testing and use show no

biodiesel-related fuel quality

issues.

Washington State Dept. of Agriculture January 2017 12

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

State Agency Biodiesel Purchases

B100 Gallons

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