Obama Calls for Greater Fed Role in Wind Power

John Davis

Democratic Party presidential candidate Sen. Barack Obama has called for a greater role for the federal government in the wind energy business. He believes with the proper amount of help, the industry could produce half of the nation’s energy needs.

The senator made the remarks during his first campaign stop in the state that is becoming a leader in wind energy production in this interview with the Argus (South Dakota) Leader:

Q: Does the federal government have a role in promoting wind power, and if so, what is that role?
A: Absolutely. The main thing we need to do short-term is pass the tax incentives that will expire in December. If we don’t get those tax incentives, those federal tax breaks in place, then you’re going to see a whole lot of wind power generation and industry moving to Europe. It’s already starting to happen. That’s one of the reasons I supported the energy bill that was passed a year ago. Not because I was thrilled with some of the provisions. In fact, I tried to get some stripped out – like tax breaks for oil companies. But because it represented a huge expansion and investment in wind energy. I want to put $150 billion over the course of 10 years in research around wind, solar, biodiesel, advanced technology for more fuel- efficient cars. And we can pay for it by charging polluters who are helping to contribute greenhouse gases. That, I think, is not only good for the environment, not only good for our national security because over time we’ll reduce our consumption of foreign oil.

Obama goes on to say that if the federal tax incentives for wind energy aren’t renewed, this country will lose out to European interests.

Just for the record, here are the renewable energy policies of Obama, Sens. Hillary Clinton, and John McCain. You read, you decide.

Wind

More Biodiesel Plants Switching to Animal Fats

John Davis

As the price of the main feedstock for biodiesel… soybeans… continues to rise, more producers are switching to alternatives, especially animal fats.

This story in the Des Moines (IA) Register says the change might help solve the food-versus-fuel debate:

Renewable Energy Group (REG) of Ames now runs animal fats in at least four of its seven biodiesel plants in the state, according to Gary Haer, vice president of sales and marketing.
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He says the animal fat fuel works well in the diesel market, whether it’s blended at 5 percent, 10 percent or 20 percent with regular diesel.

“Biodiesel made from animal fats is a very good product, and we are using it as one of our alternatives to soybean oil,” Haer said.

Another biodiesel group, Benefuel, which uses an India-developed technology to process the animal fat, is scouting the state for investors and plant sites.

The article goes on to point out that Iowa is a natural place for an animal-fat biodiesel plant since the state is such a large producer of cattle and hogs, and the fats would be available from the rendering plants.

But don’t think that animal fats, just like soybeans, will be immune to price hikes. The price for this new commodity has jumped 8 to 9 percent this year.

Biodiesel

Farm Bill Promotes Cellulosic Ethanol

Cindy Zimmerman

The Farm, Nutrition and Bioenergy Act of 2008 passed by Congress last week has some significant incentives to promote second generation ethanol.

Among them are a cellulosic biofuels production tax credit for up to $1.01 per gallon; funding for loan guarantees to commercial scale bio-refineries for advanced biofuels; a program to encourage farmers to establish and grow biomass crops in areas around biomass facilities; and continuation of research and development through the biomass energy research program administered jointly by the Departments of Agriculture and Energy. The bill more than doubles current funding, providing $118 million for research.

VereniumCarlos Riva, president of cellulosic ethanol firm Verenium, says the provisions in the bill will speed the development of cellulosic ethanol toward commercialization.

“America is preparing for the next important wave of alternative fuels, and this bill is a watershed moment in our national effort to develop energy that reduces greenhouse gas emissions and lessens America’s dependence on foreign oil,” said Riva.

Verenium operates one of the nation’s first cellulosic ethanol pilot plants in Jennings, Louisiana and is preparing to cut the ribbon at its 1.4 million gallon-per-year demonstration-scale facility in the same location on May 29.

Cellulosic, Ethanol, Government, News

House Committee Extends Biodiesel Incentive

John Davis

The U.S. House Ways and Means Committee has approved the Energy and Tax Extenders Act of 2008, a measure that will extend the biodiesel tax incentive through the end of next year and provides a dollar-per-gallon incentive for all biodiesel regardless of feedstock.

Passage in the committee gained the praise of the National Biodiesel Board:

“I would like to thank Chairman Rangel and the members of the Ways and Means Committee for extending and improving the biodiesel tax incentive,” said Joe Jobe, CEO of the National Biodiesel Board (NBB). “The biodiesel tax incentive is working, and the committee’s decision to support biodiesel will help our industry improve America’s energy independence by displacing foreign petroleum with clean-burning, domestically produced fuel.”

If finally passed by Congress and signed by the president, HR 6049 will also stop what’s known as the “splash and dash” loophole that has been letting fuel produced outside of the U.S. to come into this country and then sent to another country for actual use. That issue has been a bone of contention for many American biodiesel producers and groups for some time.

Biodiesel, Government, Legislation

Senators Pleased With Energy Title of Farm Bill

Cindy Zimmerman

Tom HarkinTwo of the main architects of the new Farm Bill are more than thrilled with overwhelming passage of the legislation this week by both the House and Senate.

“Senate passage of the farm bill conference report on a strong, bipartisan basis demonstrates support for core farm bill initiatives – conservation, energy, nutrition and rural development – while continuing and strengthening farm income protection,” said Senate Agriculture Committee chairman Tom Harkin (D-IA).

Harkin says the bill increases biofuels production by accelerating commercialization of advanced biofuels, like cellulosic ethanol, by helping farmers produce biomass crops, by providing grants and loan guarantees for new biorefineries, and by increasing bioenergy research.

Saxby ChamblissSenate Ag Ranking Republican Saxby Chambliss of Georgia said of the bill, “We’re going to make sure that we provide future generations with alternative energy projects and that we do it in the right way.”

The Farm, Nutrition and Bioenergy Act of 2008 passed the House by a 75 percent margin and the Senate vote was 81 to 15. However, President Bush intends to veto the bill because he says it is too costly and contains too little reform. The margin of votes in Congress indicate that they will be able to override the veto.

Biodiesel, Energy, Ethanol, Government, News

Ethanol on Display at Alternative Vehicle Expo

Cindy Zimmerman

Ethanol was in the spotlight at this week’s Alternative Fuels and Vehicles Conference & Expo in Las Vegas.

EPIC at AFViThe conference featured every vehicle technology under the hot sun on display and several panels and workshops helped to educate and provide information about the various blends of ethanol and especially how they can fit into greener fleets.

Ethanol Promotion and Information Council communications specialist Elizabeth Hilpipre says that several ethanol representatives appeared on panels at the event. “There were many questions during the conference about compatibility, sustainability and of course, food and fuel,” she said. “Over three different panels, EPIC Deputy Director Robert White spoke about the realities of the food and fuel debate, as did Team Ethanol IndyCar owner Bobby Rahal.”

During the general session, Rahal addressed his concern over the impact of $120+ per barrel oil, and the simple transportation costs associated with getting products to market, having more of an impact on food prices.

Overall, Hilpipre says the conference was a great success for the ethanol industry. “Fleet managers, average consumers and school kids turned out by the numbers to learn about the arsenal that continues to grow each year to help diversify our nation’s fuel supply,” she said.

EPIC, Ethanol, News

Biofuels Flying High with Algae

John Davis

Airbus and JetBlue Airways are just two of a handful of airlines exploring the use of biofuels made from algae to power their planes. The Green Tech Blog reports that a joint biofuel effort – which also includes international airlines Aero Engines, Honeywell Aerospace and UOP, a second Honeywell company – was announced Thursday.

The group plans to study ways to make commercial aviation fuels out of so-called second-generation feedstocks such as algae.
Airbus A380

Success with algae would be a salve for biofuel boosters who are feeling the sting of a backlash against early hype… Algae as a fast-growing fuel source–and a gobbler of carbon dioxide, a major greenhouse gas–is a notion that’s been catching on with a number of start-ups and academic researchers.

But for the moment, biofuel from algae remains an experiment in progress, expensive to produce and still entangled in a number of technical challenges.

That’s where the backing of established and heavyweight manufacturers such as Honeywell and Airbus could make a difference. Honeywell says that its UOP subsidiary, a specialist in refining technology, has been working for some time in a DARPA-funded project to convert natural oils and grease into military jet fuel and has commercialized a process for producing “green diesel” from biofeedstocks.

Biodiesel, transportation

Ethanol Smear Campaign Exposed

Cindy Zimmerman

Ethanol proponents from the halls of Congress to the corn fields of the Midwest are expressing outrage at documentation that major food corporations may have supported a high-dollar public relations campaign to blame farmers and ethanol for rising food prices.

Chuck GrassleyIn a prepared floor statement on Thursday, Senator Chuck Grassley of Iowa told his colleagues that “this anti-ethanol campaign is not a coincidence. It turns out that a $300,000, six-month retainer of a beltway public relations firm is behind the smear campaign, hired by the Grocery Manufacturers Association.”

That information was reported Wednesday in the Capitol Hill publication Roll Call, which obtained confidential documentation of the effort.

Roll Call“Rising food and fuel prices have led the biofuels industry to take a beating on Capitol Hill the past few weeks,” the article stated. “But the pummeling hasn’t been by chance — it’s part of a concerted effort spearheaded by the Grocery Manufacturers Association and the Glover Park Group. GMA has been leading an ‘aggressive’ public relations campaign for the past two months in an effort to roll back ethanol mandates that passed in last year’s energy bill.”

Among the documents obtained by Roll Call was the GMA’s proposal request “to build a groundswell in support of freezing or reversing some provisions of the 2007 Energy Bill and for the elimination/reform of ethanol subsidies and import restrictions.”

Glover Park Group’s proposal response included the number one objective to “obliterate whatever intellectual justification might still exist for corn-based ethanol among policy elites.”

NCGANational Corn Growers Association president Ron Litterer says that corn farmers are shocked and outraged by the news. “It is simply unfathomable that food companies through the Grocery Manufacturers Association chose to smear their farmer-suppliers rather than cooperate with us to meet the growing challenge for America’s fuel needs,” Litterer said. “Unfortunately, from what we’ve heard this not the only campaign in the works to place the blame on agriculture.”

Ethanol, Food prices, News

Deere Upgrades Ethanol Management System

Cindy Zimmerman

DeereJohn Deere Agri Services has released an upgrade to its ethanol business management system, which includes a new flow controller interface as an extended option available with their scale automation system. As part of the integrated business system for ethanol facility management, the scale system automates shipping and receiving operations.

The ethanol facility is able to customize the system according to factors such as ID, load number, or destination. When haulers arrive at the plant, the flow controller prompts them for the required information, which is then optionally verified with data in the automated system.

Ethanol, Facilities, News

Massachusetts to Get E85 Station

Cindy Zimmerman

Massachusetts drivers will soon be able to get 85 percent ethanol enriched fuel for their flex-fuel vehicles.

Mass E85 StationAccording to the National Ethanol Vehicle Coalition, Burke Oil of Chelsea, MA will add E85 to its fueling options next month.

“Waivers and permits were new issues for state and local government agencies as well as for us,” said Andy Frongillo of Burke Oil. The lack of Underwriters Laboratories certification of a dispenser kept the site from opening much sooner.

Frongillo added, “Burke’s gas station has the distinction of being the first in Massachusetts offering biodiesel at the pump. Burke supplies many of the area’s largest biodiesel and bioheat users. To keep pace with growing demand, the company recently opened a Biofuels Storage Facility in Holyoke, Massachusetts.”

Burke Oil tentatively plans to hold a grand opening event on June 26.

Biodiesel, E85, Ethanol, Flex Fuel Vehicles, News