Fuel-Cyclel Energy and Greenhouse Gas Emission ... - GREET Model

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Fuel-Cycle Energy and Greenhouse Emission Impacts of Fuel Ethanol Michael Wang Center for Transportation Research Argonne National Laboratory Presentation at EPA Cincinnati Cincinnati, Ohio, May 8, 2003

Cycles for Vehicle/Fuel Systems The Illustration is for Petroleum-Based Fuels

Vehicle Cycle WTP: well-to-pump PTW: pump-to-wheels WTW: well-to-wheels (WTP + PTW)

Well to Pump

Pump to Wheels

Fuel Cycle

The GREET (Greenhouse gases, Regulated Emissions, and Energy use in Transportation) Model ‰ GREET includes emissions of greenhouse gases ƒ CO2, CH4, and N2O ƒ VOC, CO, and NOx as optional GHGs

‰ GREET estimates emissions of five criteria pollutants ƒ VOC, CO, NOx, PM10, and Sox ƒ Total and urban emissions separately

‰ GREET separates energy use into ƒ All energy sources ƒ Fossil fuels (petroleum, natural gas, and coal) ƒ Petroleum

‰ The GREET model and Its documents are available at http://greet.anl.gov; there are about 800 registered GREET users

U.S. Fuel Ethanol Production and Use Have Increased Steadily

In 2002, the U.S. used 2.1 billion gallons of fuel ethanol

Source: Renewable Fuels Association’s 2003 Ethanol Industry Outlook Report.

Type FRFG F.Winter Oxy. Fuels MN Oxy. Fuels Conv. Gasoline Total

Purpose Oxygenate (E6-E10) Oxygenate (E10) Oxygenate (E10) Octane/Extender

Mil. Gal. 700 250 250 900 2,100

Energy Effects of Fuel Ethanol Have Been Subject to Debate ‰ Some studies, especially those completed between late 1980s and early 1990s, concluded negative energy balance value of ethanol ‰ Those past studies basically examined energy use of producing ethanol ‰ Though self evaluation of ethanol’s energy balance is easy to understand, it may not be useful to fully understand true energy benefits of fuel ethanol ‰ A more complete way is to compare fuel ethanol with the fuels to be displaced by ethanol (i.e., gasoline) ‰ The GREET model has been applied to conduct a comparative analysis between ethanol and gasoline

Emission Effects of Fuel Ethanol Were Not Addressed on the Fuel-Cycle Basis ‰ Past emission studies focused mainly on ethanol’s evaporative emissions and its effects on vehicle tailpipe emissions ‰ Well-to-pump emissions were identified for ethanol and gasoline only in a piece-meal way ƒ Petroleum refinery emissions ƒ Ethanol plant emissions ‰ GHG emissions were simply ignored in some debatable studies ‰ Emissions of fuel ethanol need to be evaluated in a holistic and comparative way ‰ For criteria pollutant emissions, future emission controls for WTP and vehicle activities are important

GREET Calculation Logic for Production Activities Inputs Emission Factors

Combustion Tech. Shares

Calculations

Energy Efficiencies

Fuel Type Shares

Facility Location Shares

Energy Use by Fuel Type

Total Emissions

Urban Emissions

GREET Calculation Logic for Transportation Activities Energy EnergyIntensity Intensity (Btu/ton-mile) (Btu/ton-mile)

Share of Process Fuels

Transport Transport Distance Distance(mi.) (mi.)

Emission EmissionFactors Factors (g/mmBtu (g/mmBtufuel fuelburned) burned)

Energy Use by Mode (Btu/mmBtu Fuel Transported)

Emissions by Mode (g/mmBtu Fuel Transported)

Mode ModeShare Share

Energy Consumption (Btu/mmBtu Fuel Transported)

Emissions (g/mmBtu Fuel Transported)

GREET Is Designed to Conduct Stochastic Simulations Distribution-Based Inputs Generate Distribution-Based Outputs

Petroleum Refining Is the Key Energy Conversion Step for Gasoline Petroleum Recovery (97%) Petroleum Transport and Storage (99%)

NG to MeOH

Corn

MTBE or EtOH for Gasoline

Petroleum PetroleumRefining Refiningto toGasoline Gasoline(84.5-86%, (84.5-86%, Depending Dependingon onOxygenates Oxygenatesand andReformulation) Reformulation) Transport, Storage, and Distribution of Gasoline (99.5%) WTP Overall Efficiency: 80%

Gasoline at Refueling Stations

Key Issues for Simulating Petroleum Fuels ‰ Beginning in 2004, gasoline sulfur content will be reduced nationwide from the current level of 150300 ppm to 30 ppm ‰ In addition, marginal crude has high sulfur content ‰ Desulfurization in petroleum refineries adds stress on refinery energy use and emissions ‰ Ethanol could replace MTBE in RFG nationwide ƒ Energy and emission differences in MTBE and ethanol ƒ Differences in gasoline blend stocks for MTBE and ethanol

Ethanol WTP Pathways Include Activities from Fertilizer to Ethanol at Stations Agro-Chemical Production Agro-Chemical Transport Corn CornFarming Farming Woody WoodyBiomass BiomassFarming Farming Herbaceous HerbaceousBiomass BiomassFarming Farming Corn Transport Animal Feed (Corn Ethanol)

Woody Biomass Transport Herbaceous Biomass Transport Ethanol EthanolProduction Production Transport, Storage, and Distribution of Ethanol Refueling Stations

Electricity (Cell. Ethanol)

Recycling of Carbon by Ethanol Fuel Results in Large CO2 Benefits for It CO2 via photosynthesis

CO2 in the atmosphere

CO2 emissions during fermentation Carbon in corn kernels

Carbon in ethanol

Carbon in crop residue Carbon in soil

Ethanol plant

CO2 emissions from ethanol combustion

Key Parameters for Ethanol’s Energy and Emission Effects ‰ Energy use for chemicals ‰ Ethanol production ƒ Corn ethanol: wet vs. dry production ƒ Fertilizers (N, P2O5, K2O) ƒ Herbicides ƒ Insecticides

‰ Farming ƒ ƒ ƒ ƒ ƒ

Corn and biomass yield Chemicals use intensity Energy use intensity Soil N2O and NOx emissions Soil CO2 emissions or sequestration

milling ƒ Ethanol yield ƒ Energy use intensity ƒ Co-product types and yields

‰ Vehicle fuel economy ƒ Gasoline vehicles with E10 ƒ Flexible-fuel vehicles with E85

U.S. Corn Output Per Pound of Fertilizer Used Has Risen (3-yr Moving Average) 0.65

Bushels/lb. Fertilizer

0.60

?

Some earlier studies showed negative energy balance for corn ethanol

0.55

Precision farming, etc.?

0.50 0.45 0.40 0.35 0.30 1965

1970

Source: from USDA data.

1975

1980

1985

1990

1995

2000

2005

N2O and NOx Emissions from Nitrogen Fertilizer Are a Major Emission Source ‰Some nitrogen fertilizer is converted into N2O and NOX via nitrification and denitrification in farmland ‰Depending on soil type and condition, 1-3% of N in nitrogen fertilizer is converted into N in N2O ‰On the well-to-wheels basis, N2O emissions from nitrogen fertilizers could account for up to 25% of total GHG emissions from corn ethanol

Technology Has Reduced Energy Use Intensity of Ethanol Plants 70,000

1980s

60,000

2000s

Btu/Gallon

50,000 40,000 30,000 20,000 10,000 0

Wet Mill

Dry Mill

Source: from Argonne’s discussions with ethanol plant designers and recent USDA data.

Well-to-Gate Energy and Emissions Allocated to Co-Products (Animal Feed) Vary by Allocation Method

Allocation Method Wet milling Dry milling Weight 52% 51% Energy content

43%

39%

Process energy

31%

34%

Market value

30%

24%

Displacement

~16%

~20%

• Weight and energy methods no longer used • Some studies did not consider co-products at all

Energy Benefits of Fuel Ethanol Lie in Fossil Energy and Petroleum Use 3.0

Btu/btu

2.5

Uncertainty Range

Energy for producing fuel

2.0 1.5 1.0 0.5

Energy in fuel

RFG

Corn EtOH

Cell. EtOH

Energy Use for Each Btu of Fuel Used

Petroleum

Fossil

Total Energy

Petroleum

Fossil

Total Energy

Petroleum

Fossil

Total Energy

0.0

Energy in Different Fuels Can Have Very Different Qualities Fossil Energy Ratio (FER) = energy in fuel/fossil energy input 4

In cr

18.5

Fossil Energy Ratio

3

2

1.4 0.98

1

0.8 0.42

0 Cell. EtOH

Corn EtOH

Coal

Gasoline

Petroleum energy ratios for ethanol, coal, and electricity are much greater than one.

Electricity

ea se

in

En er

gy

Q

ua lit y

Changes in Energy Use Per Gallon of Ethanol Used (Relative to Gasoline) 80000 40000 0 -40000 -80000

E85 FFV: Corn EtOH

E85 FFV: Cell. EtOH

E10 GV: Corn EtOH

Petroleum

Fossil

Total Energy

Petroleum

Fossil

Total Energy

Petroleum

Fossil

Total Energy

Petroleum

Fossil

-120000 Total Energy

Btu Change/EtOH Gallon

120000

E10 GV: Cell. EtOH

Changes in Greenhouse Gas Emissions per Gallon of Ethanol Used (Relative to Gasoline)

GHG Change in Grams/EtOH Gallon

0

-2000

-4000

-6000

-8000

-10000

GHG

E10 GV: Cell. EtOH CO2

GHG

E10 GV: Corn EtOH CO2

GHG

E85 FFV: Cell. EtOH CO2

GHG

CO2

E85 FFV: Corn EtOH

Changes in Greenhouse Gas Emissions per Mile Driven (Relative to GVs) 0%

-20% -30% -40% -50% -60% -70% -80%

E85 FFV: Corn EtOH

E85 FFV: Cell. EtOH

E10 GV: Corn EtOH

GHG

CO2

GHG

CO2

GHG

CO2

GHG

-90% CO2

Changes Relative to GVs

-10%

E10 GV: Cell. EtOH

Transportation Logistics Can Affect Ethanol Emissions Local Collection

Long-Distance Transportation Rail

Rail Ethanol Plants

Barge Truck

Local Distribution

Bulk Terminals

Barge Ocean Tanker

Truck

Terminals

Truck

Refueling Stations

Transportation of Midwest Ethanol to California is Accomplished via Rail and Ocean

Oregon Terminals

SF Bay Refineries Los Angeles Refineries

Based on Pat Perez of CEC.

Midwest Supply - Majority of Supply to California

Changes in Energy Use by Corn Ethanol: Midwest Use vs. California Use 40000

0 -20000 -40000 -60000 -80000

Corn EtOH in Midwest

Results are based ethanol in E85

Corn EtOH in CA via Rail

Petroleum

Fossil

Total Energy

Petroleum

Fossil

Total Energy

Petroleum

Fossil

-100000 Total Energy

Btu Change/EtOH Gallon

20000

Corn EtOH in CA via Ocean

Changes in Greenhouse Gas Emissions by Corn Ethanol: Midwest Use vs. California Use

GHG Change in Grams/EtOH Gallon

0

-1000

-2000

-3000

-4000

Results are based ethanol in E85

GHG

Corn EtOH in CA via Ocean

CO2

GHG

Corn EtOH in CA via Rail

CO2

GHG

CO2

Corn EtOH in Midwest

Energy Balance of Ethanol Results Among Studies 40,000 30,000

Lorenz and Morris

Net Energy Value (Btu/gallon)

20,000

Agri. Canada Wang et al.

Marland and Turhollow 10,000

Shapouri et al.

Shapouri et al. Kim and Wang Dale Graboski

0 -10,000

Ho Keeney and DeLuca

-20,000 -30,000 Pimentel Pimentel -40,000 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Ethanol GHG Emission Changes Among Studies 100% 80%

GHG Changes

60% 40% 20% 0% -20% -40% -60% -80% EPA (1989): E100

EPA (1989): E85

Ho Marland Delucchi Ahmed Delucchi Wang (1990): (1991): (1991): (1994): (1996): (1996): E100 E100 E100 E100 E95 E100

Wang (1996): E85

Wang (1997): E85

Agri. Delucchi Wang Can. (2001): (2003): (1999): E90 E85 E85

In long Run, Cellulosic Ethanol Could Play an Important Role in Energy Benefits PTW WTP

Baseline GV Gasoline HEV

Oil

Gasoline FCV Diesel HEV NG FTD HEV Natural Gas

NG Central H2 FCV Cellulosic EtOH FCV

Non-Fossil Domestic

Renewable Electrolysis H2 FCV 0

1,000

2,000

3,000

4,000

5,000

WTW Per-Mile Fossil Fuels Energy Use (Btu/mi.)

6,000

Cellulosic Ethanol Could Also Play an Important Role in GHG Reductions PTW WTP

Baseline GV Gasoline HEV Oil

Gasoline FCV Diesel HEV NG FTD HEV

Natural Gas

NG Central H2 FCV Cellulosic EtOH FCV

Non-Fossil Domestic

Renewable Electrolysis H2 FCV -300

-200

-100

0

100

200

300

WTW Per-Mile GHG Emissions (g/mi.)

400

500

Conclusions ‰ Any type of fuel ethanol helps substantially reduce transportation’s fossil energy and petroleum use ‰ Though studies now show that ethanol has positive energy balance values, energy balance values alone are not meaningful ‰ Corn-based fuel ethanol achieves moderate reductions in GHG emissions ‰ Cellulosic ethanol will achieve much greater energy and GHG benefits

Some WTW Analysis Issues Need to Be Noted ‰ Multiple products ƒ System expansion vs. allocation (GREET takes both) ƒ System expansion: allocation vs. attribution of effects

‰ Technology advancement over time ƒ Current vs. emerging technologies – leveling comparison field ƒ Static snap shot vs. dynamic simulations of evolving technologies and market penetration over time

‰ Dealing with uncertainties ƒ Risk assessment vs. sensitivity analysis ƒ Regional differences, e.g, CA vs. the rest of the U.S.

‰ Trade-offs of impacts ‰ WTW results are better for identifying problems than for giving the answers