Ethanol Provisions in Farm Bill

Cindy Zimmerman

Congressional negotiators Thursday announced a compromise 2007 Farm Bill that has new incentives for biofuels production.

“The new Farm Bill will dramatically ramp up the agricultural sector’s capacity to produce clean, renewable energy,” said conference committee chairman Senator Tom Harkin (D-IA). “Significantly, it provides more than a billion dollars to expand the supply of fuels made from biomass and crop by-products, other than grain.”

According to Senator Saxby Chambliss of Georgia, the ranking Republican on the Senate Agriculture Committee, the bill invests $320 million for new loan guarantee program for the development and construction of commercial-scale biorefineries; provides $300 million in the Bioenergy Program to provide assistance to biofuel production plants for the purchase of feedstocks; provides $118 million for biomass research and development efforts; reauthorizes and provides $250 million for grants and loan guarantees for renewable energy and energy efficiency projects; and authorizes a new program, the Biomass Crop Assistance Program to help producers transition to new energy crops for biofuel production.

To help pay for the Farm Bill, negotiators cut the blenders tax credit for corn-based ethanol from 51 cents to 45 cents and initiated a tax credit for cellulosic ethanol. The bill also includes language which calls on the federal government to buy surplus sugar and sell it to ethanol producers, where it would be used in a mixture with corn.

As soon as the compromise Farm Bill was announced, the administration issued a statement promising a presidential veto because it lacks “significant reform and increases spending by nearly $20 billion.” However, House and Senate ag leadership are working on a strategy to override a veto.

Biodiesel, Cellulosic, Ethanol, Government, News

Defending the Renewable Fuels Standard

Cindy Zimmerman

Domestic Fuel CastHigher food prices have led to increasing calls for changes in the Renewable Fuels Standard (RFS) that was implemented as part the Energy bill just signed into law last December, which calls for 36 billion gallons of annual renewable fuel use by 2022.

In this DomesticFuel Cast, we hear from several of the witnesses who testified in support of the RFS at a recent hearing of the House Subcommittee on Energy and Air Quality. Included are comments from Environmental Protection Agency Deputy Assistant Administrator Robert Meyers, Bob Dinneen with the Renewable Fuels Association, Nathaneal Greene with the Natural Resources Defense Council, Randy Kremer of KL Process Design Group, and Dr. Mark Stowers with POET.

Here is the Domestic Fuel Cast #3:
[audio:http://www.zimmcomm.biz/domesticfuel/df-podcast-3.mp3]

You can also subscribe to the Domestic Fuel Cast using the following url/feed link: http://www.zimmcomm.biz/domesticfuel/domestic-fuel-cast.xml.

Audio, Domestic Fuel Cast, Ethanol, Food prices, Government, News, RFA

Biodiesel Reauthorization in Farm Bill

John Davis

nbb-logo.jpgThe National Biodiesel Board is applauding Congress for coming up with a compromise on the Farm Bill today that contains a provision that renews the Commodity Credit Corporation (CCC) Bioenergy program.

In this press release, the NBB calls the legislation key to reducing dependence on foreign oil:

“The National Biodiesel Board thanks all the Senators and Congressional leaders who have worked hard to include provisions for biodiesel and the CCC Bioenergy program,” said Joe Jobe, National Biodiesel Board CEO. “These leaders are correct in describing this farm bill as a key element in America’s energy solution. I applaud these leaders in moving the bill and recognizing that agriculture plays an enormous role in America’s energy solution.”

The CCC Bioenergy program provides support to biodiesel producers to help offset the costs of the feedstock used to produce biodiesel. Over the past year, feedstock costs have doubled, reaching record highs and making it difficult to economically produce the fuel. The $300 million provided for the CCC Bioenergy program in the Farm Bill will help bring some stability to the industry so that biodiesel can continue to add to the nation’s fuel supply.

But the measure is far from a done deal. Word is the White House is unhappy with provisions of the bill that would allow some farmers making up to $2.5 million in household income still qualify for crop subsidies and will veto the measure.

Biodiesel

Make it Yourself Ethanol

Cindy Zimmerman

For a mere $10,000 any consumer can now make and pump their own ethanol at home.

E-FuelA company called E-Fuel Corporation has introduced EFuel100 MicroFueler™ “the world’s first home ethanol system.” According to the company, the MicroFueler allows consumers to create ethanol with “sugar, yeast and water, and a standard household 110-220 AC power supply.” They claim that businesses, such as breweries, bars and restaurants can even use discarded alcohol beverages to create ethanol, for as little as $0.10 per gallon.

Micro FuelerThe home-brewed ethanol maker is the brain child of entrepreneur Tom Quinn and ethanol scientist Floyd Butterfield. They unveiled the machine at a press event Thursday in New York. Quinn says the device, which is about the size of a refrigerator, is so simple to use that anyone can do it. “You just open it like a washing machine and dump in your sugar, close the door and push one button,” he says. “A few days later, you’ve got ethanol.”

Quinn claims his invention will create a paradigm shift similar to the personal computer. “Just as the PC brought desktop computing to the home, E-Fuel will bring the filling station to the home.”

Besides the $10,000 to buy the Micro-Fueler, a consumer will also need a permit from the Bureau of Alcohol Tobacco and Firearms to make ethanol legally. In addition, the ethanol will have to be mixed with gasoline even for flex-fuel vehicles so the company recommends putting in a few gallons of regular gasoline and then topping off with the home-made brew.

The Micro-Fueler could also be eligible for federal tax credits that can bring the price down by about $3000 and the company is creating a distribution network for “ethanol-grade” sugar from Mexico that could cost as little as 3 cents a pound, compared to 20 cents for regular sugar. They claim the machine can make ethanol for as little as $1 a gallon and could pay for itself in less than two years.

Ethanol, News

Ethanol Saves Drivers Money

Cindy Zimmerman

Even though gas prices are nearing $4 a gallon, ethanol is helping drivers across the country save an average of $156 per year.

Renewable Fuels NowThat’s according to the Renewable Fuels Now (RFN) coalition and a recent Iowa State University study calculating ethanol’s impact on gasoline prices around the country. The study concluded that, by expanding the fuel supply, ethanol has made gas cheaper by 29 cents a gallon to as much as 40 cents a gallon.

RFN considered Federal Highway Administration figures on vehicle fuel efficiency and average miles driven per year to extrapolate average yearly savings thanks to ethanol in different regions of the country. They found that on the east and west coasts, where gas prices are especially high, drivers are saving an average of $142 a year on regular unleaded. In the Midwest, they are saving $241 a year.

Savings are lowest in the Rocky Mountain region, but motorists there still save as much as $104.52 per year, according to the study. On the Gulf Coast, the savings are over $150 per year.

According to a detailed breakdown by vehicle type and region, some drivers could save over $280 per year.

EPIC, Ethanol, News

Drake University Teaching Wind Law

John Davis

As I mentioned in my previous post, wind energy is making some big gains in this country… so big that lawyers are getting involved.

Drake University in Des Moines, Iowa has become just one of a handful of schools that is now teaching a course in wind energy law, according to this article in the Des Moines Register:

hamilton.jpgDrake University law professor Neil Hamilton, the director of the school’s Agricultural Law Center, has just finished teaching the school’s first class in wind law to eight law school students and three practicing attorneys.

The students are taking their exams this week, and Drake plans to make the law class permanent.

Hamilton’s wind law course covers the gamut of the legal nitty-gritty about wind energy, including easements and leases, property issues, land-use regulations, utility regulation, metering and financing, and state and federal tax, energy and environmental policies.

Hamilton’s class is one of three in the United States. The University of Texas at Austin has a wind law class and so does the University of Oregon in Eugene.

“With turbine farms going up all over Iowa, it’s the next logical step,” said Hamilton, who grew up on an Adams County farm and has taught agricultural law at the Drake Law School for 25 years.

It makes sense that this type of class would be taught in Iowa. The state has become a mecca for wind energy production as the American Wind Energy Association ranks the Hawkeye State first in the percentage of wind generation on its electrical grid. Right now, Iowa gets 5.5 percent of its electricity on the grid coming from wind power.

Wind

Wind Energy on Record Pace

John Davis

A new report out today says the U.S. wind industry is on pace to set a record for energy production this year.

This story from the Wall Street Journal’s Marketwatch.com web site says the industry put in 1,400 megawatts of new generating capacity in the first quarter of this year ending March 21:

awea.jpgIf the pace continues, a total of 5,600 megawatts of generating power will be installed in 2008, eclipsing the record of 5,300 megawatts, according to figures from the American Wind Energy Association.

The new wind power plans installed in the first quarter of this year produce enough electricity to serve the equivalent of 400,000 homes.

AWEA Executive Director Randall Swisher said he expects a big swell of projects to go on line by the fourth quarter as utilities and others hedge against the possibility that the production tax credit expires by the end of the year with no renewal from a divided Congress.

The AWEA maintains that 76,000 jobs and more than $11.5 billion in investment could be at risk if the measure doesn’t pass.

The article goes on to say that while land-based wind farms will continue to make up a large part of the growth, off-shore wind turbines will become more and more attractive to companies looking to harness the power of the wind.

Wind

Illinois Biodiesel Plant Hits Million Gallon Mark

John Davis

A biodiesel plant in Seneca, Illinois has hit the one-million-gallon mark in just the first 25 days of operation.

novalogo.jpgIn a press release, Nova Biosource Fuels says this is just the start of the projected 60 million gallons annual production from the refinery of animal fats and vegetable oils into the green fuel:

“We are pleased with the progress at the Seneca, Illinois refinery,” said Kenneth T. Hern, Chairman and CEO of Nova. “Plant commissioning is proceeding as planned. Train One has operated at nameplate capacity and has exceeded all our performance objectives for yield, throughput and quality. The refinery has successfully demonstrated conversion of feedstocks with free fatty acid levels above 6%. To date, we’ve produced more than 1.25 million gallons, and we expect to begin working on Train Two by the end of the month and Train Three will follow shortly thereafter.”

The Seneca refinery layout incorporates three process trains, each rated at 20 million gallons per year. “Our startup and commissioning plan has been developed using our experience gained during the startup of the two similar 20 million gallons per year refineries we built for third parties in Wisconsin and Mississippi,” said Mr. Hern. “Our plan is to commission the Seneca refinery one train at a time, spaced at 45 to 60 day intervals to smoothly integrate equipment shakedown, staff training, logistical support, markets and overall refinery operations to ramp up production at a methodical and structured pace. We could not be more pleased with the progress on the first train and are looking forward with great anticipation to the startup of the remaining trains.”

Nova has plans to open a total of seven biodiesel plants in the next three years with expected capacity of nearly 200 million gallons of biodiesel a year.

Biodiesel

Cellulosic Ethanol Focus at Hearing

Cindy Zimmerman

A South Dakota lawmaker is urging Congress to allow cellulosic ethanol derived from woody biomass on federal lands to count towards the Renewable Fuels Standard. Current law prevents biofuels made from biomass that originates on public lands or any biomass from private land that is not ‘planted’ and ‘actively managed’ from being counted toward the RFS.

Herseth SandlinDuring a hearing this week on the RFS, Rep. Stephanie Herseth Sandlin (D-SD) talked about the issue and how it is impacting KL Process Design Group of Rapid City, which is using waste wood product from the Black Hills forest to produce cellulosic ethanol.

“They would like to participate in the renewable energy movement the energy bill fosters and they have no interest in turning the Black Hills into a so-called ‘fuel farm’,” Herseth Sandlin told the committee.

She noted that KL’s plant in Upton, Wyoming uses Ponderosa pine waste from the forest floor which is part of forest management thinning to prevent forest fires. “Leaving slash piles to rot or burning them leads to negative environmental effects that far outweigh any benefit gained when waste returns to soil,” she said.

KL Process DesignRandy Kramer, president and co-founder of KL Process Design, also testified before the committee.

“With a Black Hills National Forest supervisor, our research is dedicated to forest stewardship that includes finding better uses for gathered forest and mill waste that otherwise provides added fuel for forest fires,” said Kramer. “Existing timber harvest and thinning programs already allow for the removal of material from national forests.”

He spoke strongly in support of corn ethanol as the only large volume biofuels bridge to the 2022 cellulose ethanol goal. “We must protect this bridge as a strategic component to allow companies like ours to improve cellulose technology,” Kramer said.

Renewable Fuels Association president Bob Dinneen echoed that sentiment under questioning by committee members. “If you are going to have a second generation ethanol industry, you have to make sure that you have not eviscerated the first generation ethanol industry that is providing the foundation from which those new technologies will be able to flourish.”

Cellulosic, Ethanol, Government, News, RFA

DuPont Powers Solar Plant in Hong Kong

John Davis

dupontpng.pngHong Kong and Shenzhen will be homes to two new DuPont research centers. DuPont will use the new facilities for continued development of photovoltaic (PV) solar energy.

DuPont expects growth in the photovoltaic market to exceed 30 percent in each of the next several years. The company has made significant investments in product development and capacity expansions to help keep pace with the demand.

Accelerating its capability to meet emerging materials requirements is critical for DuPont, which has long been a leading supplier of materials primarily serving the crystalline silicon (c-Si) cell and module markets. The expansions in Hong Kong and Shenzhen will provide new offerings to serve the amorphous silicon (a-Si) thin film market.

Thin film technology is well-suited for large-scale utility applications such as “solar farms” and industrial installations. The growth rate for thin film is projected to be approximately twice as high as demand for c-Si, and DuPont expects this increase to drive specifications for both new and existing products that serve the thin film industry. These include DuPont(TM) Butacite(R) PV sheet based on polyvinyl butyral (PVB), DuPont(TM) SentryGlas(R) PV sheet based on ionomer and DuPont(TM) Elvax(R) ethylene vinyl acetate (EVA) that are offered as encapsulation materials for thin film modules.

Energy, International, Solar