Southern States Power Completes BioDiesel Tests
30 March 1999
Southern States Power Completes BioDiesel Tests as GM and Other Auto Manufacturers Transition to Diesel Vehicles
SHREVEPORT, La., March 30 -- In response to rapidly growing
worldwide demand for BioDiesel fuel as near-term solution to increasing
numbers of national and state diesel emissions regulations, Southern States
Power Company (OTC Bulletin Board: SSPC) completed two more BioDiesel tests to
demonstrate the immediate benefits of BioDiesel. The tests came on the heals
of SSPC's recent acquisition of its second BioDiesel oil extraction plant in
Mexico that give the company a world-class BioDiesel production capacity of
over 14,000,000 gallons per year (see press releases dated March 1 and March
10, 1999 and SSPC's web site at http://www.sspowerco.com).
Diesel Will Drive the 21st Century
The sharply increasing worldwide demand for BioDiesel comes in response to
worldwide changes in the transportation industry. At the core is the need to
improve diesel engine performance while reducing harmful emissions. Many
transnational corporations are partnering to provide solutions as fast as
possible. The transportation industry news has included such headlines as
"Peugeot & Ford in Diesel Deal," "Detroit Diesel Increases Production
Capacity," "GM and Isuzu Plan Joint Diesel Engine Plan" and "Volvo to Buy a
Minority Share in Deutz."
This worldwide change from gasoline to diesel technology is clearly
reflected in a statement by DieselNET on their http://www.dieselnet.com web site:
"The diesel engine is the most efficient power plant among all known types
of internal combustion engines. (It is precisely for this reason that) heavy
trucks, urban buses, and industrial equipment are powered almost exclusively
by diesel engines all over the world. In Europe, diesel powered cars have
been increasingly popular. The diesel engine is a major candidate to become
the power plant of the future."
The near-term future of transportation will be defined by new diesel
technology as discussed in the March 1999 issue of AI (Automotive Industries)
magazine:
"Diesel's thermal efficiency (its ability to convert the energy in fossil
fuel to mechanical energy) is already greater than spark-ignition gasoline
engines, yielding up to 40% higher fuel economy and thus 40% fewer CO2
emissions that the U.S. promised to reduce at the Kyoto global warming
conference. And they're cleanest during steady-state running, making them
prime candidates for hybrid-electric powertrains."
This rapid change from inefficient gasoline powered vehicles to vehicles
powered by much more efficient diesel engines has been happening for many
years in Europe. If it were not for the failure of the first U.S. auto
manufacturers' attempt to provide diesel cars, the U.S. public might have
embraced diesel technology earlier. As Auto Industry magazine points out:
"'This is not your father's Oldsmobile,' quips a supplier, referring to
GM's disastrous attempt to run Oldsmobile gasoline V-8s into diesels 20 years
ago. The move helped wreck the diesel's reputation as a passenger car
powerplant in the U.S. Less than 1% of U.S. cars and about 5% of light trucks
are diesels, compared with about 22% of cars and 75% of light trucks in
Europe, according to Power Systems Research, Inc."
As the public becomes more aware of the enormous potential for new diesel
technology to power nations into the next century, attention is turning to
cleaning up diesel emissions so that vehicle manufacturers can take full
advantage of diesel technology in the 21st century. Solving the diesel
emissions problem is now becoming the primary concern of every government and
auto manufacturer. As DieselNET states on their http://www.dieselnet.com web site:
"Before that (diesel engines replace gasoline engines) happens, however,
further progress in diesel emission control is needed. ... The new 2004
emission standards in the U.S. as well as the tightening regulations in Europe
and East Asia reflect the growing concern with diesel emissions."
BioDiesel Will Fuel the 21st Century
The future success of diesel technology depends upon both improved engine
design and upon improved fuels. For a long time, the term "diesel" has meant
"dirty" to consumers. It is clear that the future of diesel vehicles will
depend in part upon being able to change public attitudes about diesel
technology by demonstrating that alternative fuels like SSPC's BioDiesel help
create clean-running vehicles.
"Common diesel fuels contain nearly 10% more energy, gallon for gallon,
than gasoline. Yet experts agree that diesel fuel must get cleaner before any
of the other technological gains mature. ... U.S. diesel fuel is notoriously
bad." (Auto Industry magazine, March 1998)
Enter center stage -- BioDiesel fuel, an agriculture-based oil that is
blended with traditional diesel fuel to dramatically reduce diesel emissions.
So important is BioDiesel as a low cost, immediate solution to diesel emission
problems that the U.S. Congress has passed BioDiesel legislation to foster
public acceptance and industry use of this new alternative vehicle fuel. As
DieselNET states:
"On October 15, the U.S. Senate and House passed legislation that alters
the Energy Policy Act of 1992 (EPACT) by allowing the use of BioDiesel fuel to
meet requirements of federal and state fleets to purchase alternative fuel
vehicles. EPACT presently requires only the purchase of alternative fuel
vehicles and not the actual use of alternative fuels, such as BioDiesel."
After the EPACT requirement for 100% use of BioDiesel was reduced to 20%,
the incentives for fleet owners and operators to use BioDiesel are
substantial:
"The legislation allows federal and state fleet managers to meet the
Energy Policy Act alternative fuel vehicle (AFV) acquisition requirements by
using BioDiesel added to conventional diesel at blends of 20% and higher. The
use of BioDiesel would produce credit to offset up to 50% each year of vehicle
acquisition requirements." (DieselNET)
What are the specific improvements that BioDiesel causes when added to
traditional diesel fuel?
1. Emission Reductions
Particulate emissions from conventional diesel engines can be divided into
three components. The first component, and the one most closely related to
the visible smoke often associated with diesel exhaust, is the carbonaceous
material. The second component is hydrocarbon or PAH material which is
absorbed on the carbon particles. The third particulate component is
comprised of sulfates and bound water.
The use of BioDiesel decreases the solid carbon fraction of particulate
matter, eliminates the sulfate fraction (as there is no sulfur in the fuel),
while the soluble, or hydrocarbon, fraction stays the same or is increased.
Therefore, BioDiesel works well with new technologies such as catalysts (which
reduces the soluble fraction of diesel particulate), particulate traps, and
exhaust gas recirculation (potentially longer engine life due to less carbon).
In tests conducted by the US Bureau of Mines (USBOM) using a Jeffrey 4110
RamCar powered by a Deutz/MWM 6.3 liter engine, the beneficial effect of
BioDiesel was that particulate matter was reduced 50%. Indeed, in one study
by the USBOM, equipment operators commented on the distinct absence of black
smoke upon acceleration when using BioDiesel.
2. Operating Performance
One of the major advantages of BioDiesel is the fact that it can be used
in existing engines and fuel injection equipment without negative impact to
vehicle operating performance. BioDiesel has a higher cetane number than
conventional diesel fuel. The use of BioDiesel results in similar fuel
consumption, torque and horsepower compared to conventional diesel fuel.
3. Health Effects
Evidence exists that indicates that diesel particulate matter is a
potential carcinogen. In 1988, the National Institute for Occupation Safety
and Health (NIOSH) recommended that whole diesel exhaust be regarded as "a
potential occupational carcinogen." The use of BioDiesel does result in
decreases in most regulated emissions. Relative to health effects, research
results indicate that particulate matter, specifically the carbon or insoluble
fraction, is significantly reduced. In general, BioDiesel exhaust has less
harmful impacts on human health than does traditional diesel fuel.
4. Lubricity
Lubricity tests have demonstrated the lubricity advantage of BioDiesel.
The tests show that a 20/80 percent blend of BioDiesel/Diesel results in scar
values 150% lower than traditional diesel fuel and equal to diesel fuel with
Exxon lubricity additive. In addition, BioDiesel Friction test values were
100% lower than traditional diesel fuel and equal to diesel fuel with Exxon
lubricity additive.
5. Flash Point and Sulfur Content
Testing at the Southwest Research Institute concluded that the flash point
of BioDiesel blends increased as the percentage of BioDiesel increased.
Therefore, pure BioDiesel or blends of BioDiesel with traditional diesel fuel
is safer to store, handle, and use than conventional diesel fuel. Pure
BioDiesel is essentially sulfur free and results in a total reduction of SO2
emissions and sulfate aerosols in particulate matter. These reductions should
assist in increasing both vehicle and catalyst life span.
6. Biodegradability
BioDiesel also has desirable degradation attributes. In tests done by the
University of Idaho, BioDiesel biodegradability was twice that of petroleum
diesel fuel.
7. Toxicity
Impacts on human health represent a significant criterion regarding the
suitability of a fuel for commercial applications. Both laboratory animal and
aquatic bio-assay toxicity tests have demonstrated that BioDiesel is less
toxic than diesel fuel.
BioDiesel Test by Southern States Power
As stated previously, BioDiesel is already being sold in Europe as an
alternative clean fuel and recently the United States government allowed a 20%
blend of BioDiesel to qualify as an alternative fuel. Southern States Power
Company, which has already acquired significant BioDiesel production
capabilities, expects to enter European and U.S. markets and other emerging
BioDiesel markets worldwide.
Nevertheless, Mexico, the nation wherein SSPC's production facilities are
located, has not yet recognized BioDiesel fuel as an alternative which can
immediately help clean up the very polluted atmosphere in Mexico City and
other big cities. To bring the advantages of BioDiesel to the government and
industry of Mexico, SSPC has initiated a BioDiesel demonstration test program
which began on January 7, 1999 in Otay Mesa, Mexico. For this test, SPCC
engineers were given a difficult challenge -- to improve the emissions of an
aging 1972 diesel powered semi truck. This vehicle, which was selected
because it is typical of many old heavy-duty trucks that service the city, was
belching black smoke that is typical of the majority of diesel vehicles in
Mexico City. After documenting the exhaust density, the engineering team
filled the diesel tank with a pre-mixed solution of 20% soybean oil and 80%
regular diesel fuel, a typical BioDiesel fuel blend. When the BioDiesel fuel
reached the engine, the exhaust became clear with no black smoke. The test
was witnessed by many professionals including representatives of the EPA of
Mexico. The results achieved during this test were nearly identical to
results obtained by the U.S. federal government using similar blends of
soybean oil and regular diesel fuel. And, as mentioned earlier, in addition
to reduced emissions, the operators of the vehicle reported having observed no
loss of truck performance.
In addition to BioDiesel's benefits to internal combustion engine
technology, it also has significant benefits in other applications. For this
reason, SSPC conducted a second demonstration test using a BioDiesel blend to
operate a boiler. The test was held on March 16, 1999 at the Palacio Azteca
Hotel in Tijuana, Mexico, and consisted of replacing traditional boiler fuel
with SSPC's proprietary BioDiesel industrial blend that was specifically
formulated for boiler applications. The results of this test demonstrated
that this blend of BioDiesel caused no change in boiler efficiency while
substantially reducing visible exhaust emissions. The hotel management has
already indicated interest in purchasing the SSPC "Boiler Blend" BioDiesel
fuel as part of the hotel's commitment to help clean the city's environment.
SSPC in a World Market
With the rapid change from gasoline to diesel powered vehicles in the 21st
century, the demand for clean fuels that maintain engine performance
requirements will increase rapidly. Many signs already indicate that the
demand will grow rapidly for this alternative clean fuel. It is for this
reason that Southern States Power Company decided in 1998 to become a leading
manufacturer and supplier of BioDiesel products and why the company has
committed substantial resources to the development and marketing of standard
and special BioDiesel blends to meet many market segments around the world.
With both of its recently acquired high capacity BioDiesel production plants
in Mexico now undergoing final refurbishing and preparing for production, SSPC
anticipates taking a leadership role in the global BioDiesel marketplace.
Southern States Power Company is a diverse, publicly-held corporation that
was formed to provide advanced energy and transportation solutions to
consumers, industries and governments. The company current is comprised of
five divisions including Advanced Fuel Cell Technology, Power Generation and
Distribution, Alternative Clean Fuels, Transportation Systems and Vehicles,
and Electric Generation Systems. SSPC's Advanced Fuel Cell Technology
Division recently formed a joint venture with Global Fuel Cell Corporation
(GFC) that is preparing to demonstrate a long-distance passenger van drive and
a continuous base-load stationary power plant using GFC's high-performance,
high-availability proton exchange membrane (PEM) fuel cell.
This press release contains forward-looking statements that should not be
used to make an investment decision. Please refer to our web site
(http://www.sspowerco.com) & other sources for more detailed Company information or
call Michael Sealey (318) 221-5703.