Figure 1: AGTANE Process

• Several convergent global trends favor AGTANE production from YG. Diesel prices have risen and they are expected to remain high. There is also increased regulatory pressure towards the increased use of diesels and biodiesels with low sulfur content and reduced particulate matter emissions. Such “clean diesels” are significantly more expensive than the diesels commonly used over the last decade.
  
• AGTANE could provide to the rendering industry steady and continuous global outlets for sizeable YG sales (increasing and maintaining “product disappearance”) while establishing a new and reliable customer base (e.g., the petroleum refining industry). The potential to create a permanent pricing floor for YG and tallow across the world also exists.
  
• For the rendering industry, the production of AGTANE in sufficiently large quantities presents an effective means to help keep YG prices from falling below a minimum threshold (approximately $0.09/lb.).
  
• Based on its bottom line appeal, AGTANE production is expected to be readily implemented in major urban areas where large rendering operations are located within 50 miles of petroleum refining facilities.

Figure 2: Renderer-Only Plant Model

Table 1

AGTANE will be distributed through existing refined petroleum products distribution channels. Refiners exposed to AGTANE consider it to be a “synthetic diesel.” California refiners have indicated they would buy the product once it becomes commercially available. Some California refiners currently buy a similar (although not as high quality) low sulfur diesel blending stock from Malaysia. The same refiners have indicated that they would support an AGTANE demonstration project once a small pilot plant has been field proven.

Unlike biodiesel, there are no engine emission trade-offs. No water is needed to produce AGTANE (water is needed to make biodiesel). On the BSE front, prions are destroyed due to intense heat and high pressures in making AGTANE. It is likely that prions may survive the biodiesel manufacturing process due to lower heat and pressures conditions.

- AGTANE quality is not affected by the YG’s free fatty acid (FFA) content. Biodiesel production is severely affected by FFA content of the raw materials.
- A by-product of AGTANE production is a low-sulfur, heavy oil cut that is readily marketable or that can serve as source material for hydrogen (necessary to make AGTANE). The entire AGTANE manufacturing process can ultimately be made H2 self-sufficient.

It is thought that annual production of AGTANE in the North America could readily exceed 570 million gallons. In California alone, about 51 million gallons of this product can be steadily produced each month, replacing an equivalent amount of petroleum derived diesel.

Figure 3. Impact of Yellow Grease-derived AGTANE on Diesel Cetane Number

Figure 4: Response of Tosco Diesel Fuel to Commercial Cetane Improver

1. Linearly raised the cetane of unadditized Tosco diesel without a top-end limit(#1);
   
2. Can linearly raise the cetane of “non-responsive”(#2) diesel blends;
   
3. Is synergistic with traditional cetane improvers;
   
4. Has a low sulfur content (~15 ± 5ppm)(#3);
   
5. Increases end-product volume by the added AGTANE volume;
   
6. Can finish the refining process for an unadditized diesel at a lower cetane value than previously possible; and
   
7. Allows diesel blenders/traders to buy and profitably resell lower cetane “non-responsive” diesel stock.