Chevron, Weyerhaeuser Team Up for Biofuels

John Davis

chevronweyer.jpgOil giant Chevron and timber giant Weyerhaeuser are teaming up to make biofuels.

This story in the Seattle Times says the new company formed from the partnership, Catchlight Energy, will be looking to get the green fuel from cellulose and lignin:

Catchlight will initially have offices at Weyerhaeuser’s Federal Way headquarters and at Chevron’s San Ramon, Ca. homebase. Chevron executive Michael Burnside will be the new venture’s chief executive, and W. Densmore Hunter of Weyerhaeuser is chief technology officer.

Both firms will contribute technology and personnel. Catchlight may employ 30 to 40 people over time in its research and development effort, said Weyerhaeuser president Dan Fulton.

The venture will study “not only the technology, but also the commercial implications of creating a viable business there,” Fulton said.

The creation of Catchlight formalizes a partnership Chevron and Weyerhaeuser entered in April 2007. At the time, many energy and agricultural companies began seeking to leverage their expertise into the fast-growing biofuel business.

This is not the first time unlikely partners have teamed up to make biofuels. You might remember that “Big Oil” and “Big Chicken” (ConocoPhilips and Tyson, respectively) teamed up last year to turn chicken fat into biodiesel.

Cellulosic, Ethanol, News

Challenge to Argentine Export Tax System

John Davis

asa_logo.jpgThe American Soybean Association (ASA) is filing a World Trade Organization challenge to Argentina’s export tax system… a system the ASA says turns out to be an unfair subsidy for Argentine biodiesel exports.

This story posted on Agriculture Online has details:

The Argentine export tax system favors biodiesel with lower export taxes for the fuel than for exports of raw soybeans, ASA’s president, John Hoffman of Waterloo, Iowa, told Agriculture Online.

“Right now there’s a huge advantage for crushers down there to export biodiesel,” Hoffman said. It amounts to $1.11 per gallon of biodiesel. Hoffman said it’s so profitable, that soybean crushers in Argentina are importing soybeans from Brazil and Paraguay.

So far, the biodiesel exports aren’t coming into the U.S., where biodiesel plants are already limiting production due to the high cost of vegetable oils. Hoffman said the Argentine biodiesel is mainly going to the European Union.

On the way, tankers of biodiesel stop by U.S. Gulf Coast ports, where as little as one percent petroleum diesel is blended in. That qualifies a load of biodiesel for the $1 dollar a gallon biodiesel tax credit intended for U.S. producers, said ASA spokesman Bob Callanan. That so-called “splash and dash” adds another $1 in subsidies, paid by U.S. taxpayers, for South American biofuel bound for Europe.

ASA officials are optimistic that they’ll be able to close the “splash and dash” loophole by stopping Congress from renewing it before it expires at the end of this year.

Biodiesel, International, Legislation

Ohio Becoming Mecca for Green Collar Jobs

John Davis

ohio.jpgA new report says Ohio could be home to 174,000 advanced, renewable energy jobs by 2030.

The report by the American Solar Energy Society, funded by the non-profit Ohio Business Development Coalition, says the Buckeye State is pioneering efforts to increase the number of skilled professionals in the renewable energy field:

According to the Ohio Business Development Coalition (OBDC), the nonprofit organization that markets the state for capital investment, Ohio’s universities and colleges are gearing up to meet the need for skilled green collar workers through new programs, degrees and training specific to the advanced energy industry.

One example of an educational institution rising to the occasion is Hocking College in Nelsonville, Ohio. The college was recently awarded a $1.6 million grant from the U.S. Department of Commerce’s Economic Development Administration to build an innovative learning facility. The Hocking College Energy Institute will feature modern learning labs for students studying in the college’s energy programs.

“This state-of-the-art facility is truly a place where students will receive hands on training in advanced energy,” said Jerry Hutton, dean of energy and transportation technologies for Hocking College. “Training skilled workers is critical to attracting renewable energy companies to Ohio and recharging the state’s manufacturing base.”

Ohio’s direct market access to renewable energy consumers and state-sponsored programs are helping companies develop and launch the next generation of advanced energy technologies and compete even more effectively in a global economy. Through initiatives such as Ohio Governor Ted Strickland’s Energy, Jobs and Progress plan, announced in 2007, Ohio is modernizing its energy infrastructure, ensuring affordable and stable energy prices and attracting renewable energy jobs of the future through an Advanced Energy Portfolio Standard. Ohio also is a driving force behind initiatives to increase the production of ethanol, biodiesel fuels and cellulosic ethanol, a fuel produced from farm waste and plants.

Ohio’s Third Frontier Project is also part of that effort to increase those green collar jobs. It’s a 10-year, $1.6 billion initiative to help build relationships between companies and higher education. It marks the largest commitment by Ohio to expand high-tech research capabilities, promote innovation, company formation and create high-paying jobs.

Biodiesel, Ethanol, Miscellaneous, News, Solar, Wind

Ag Secretary on RFS

Cindy Zimmerman

Secretary of Agriculture Ed Schafer has only been on the job officially for about a month but he has been busy making the rounds of farm meetings. During his appearance at the 2008 Commodity Classic on Friday, Schafer expressed great optimism for agriculture – record prices, record farm income, record exports and the blending of energy and agriculture.

Ed SchaferDuring a press conference following his appearance at the general session, Schafer fielded questions from farm media about biofuels and ethanol in particular. Asked if there was any chance that there might be a delay in implementing the new Renewable Fuels Standard because of recent reports claiming that biofuels are bad for the environment, Schafer said no.

“I don’t because no matter what happens it’s not going to have an effect this year,” Schafer said. “We are getting to the point of topping out on ethanol production, not because of production capacity, but because of our ability to deliver it in the current infrastructure.”

“The research dollars are going in to move from ethanol to the cellulosic generation,” Schafer continued. “While we are playing catch up on non-price distorting feedstocks for ethanol, which is going to take some time, we do think we are arriving at the levels this year where we are going to see a leveling off of (commodity) prices.”

Listen to Schafer’s comments here:
[audio:http://www.zimmcomm.biz/commodity-classic/schafer-press-ethanol.mp3]

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

Audio, Commodity Classic, corn, Ethanol, News

BMW Planning of Hydrogen Future

John Davis

bmw.jpgWhile some car makers might be betting the future for fuels will be a mix of several different sources, one major European carmaker seems to be happy to put all of its eggs in one basket.

SFGate.com reports BMW told attendees of the Technology, Entertainment, Design (TED) Conference today in Monterey, California that it is going all in with hydrogen:

“Water is the coal of the future,” a big sign in the middle of the room read. It was a reference to the process of extracting the H from H2O, and then using it to power the same internal combustion engines we use today.

Turns out BMW started its hydrogen program back in 1978, and as such, they have a ton of research on the topic. Lots of interesting factoids. For example, BMW believes:

–The world will hit peak oil in 2025, marking the day the world reaches its peak petroleum production, declining thereafter until we run out.

–Technology will allow us to mass-produce hydrogen, without burning fossil fuels to do so, in the next 10 to 15 years.

–The cost of putting a hydrogen gas station on every 40 to 50 miles of U.S. roadwways would cost between $400 billion and $500 billion.

–We will see the beginnings of hydrogen infrastructure, i.e., gas stations, by 2025.

–We will switch over totally between the years 2040 and 2050.

In the meantime, BMW is still developing hybrids to take advantage of other alternative fuels. But long term, look for the company to put more and more into a hydrogen future.

Car Makers, Hydrogen

SD Biodiesel Tax Break Moves to Governor’s Desk

John Davis

sdcapitol.gifThe South Dakota State House and Senate has voted unanimously to approve a bill that would cut state taxes on diesel mixed with biodiesel.

This story in Land Line Magazine says if the governor signs the bill as expected, it could take a little time before the effects kick in:

At the request of Gov. Mike Rounds, the House and Senate unanimously approved a bill that would reduce the fuel tax on diesel that contains at least 5 percent biodiesel by 2 cents per gallon. The fuel tax applied to regular gasoline and diesel now is 22 cents per gallon. The bill – SB148 – would trim the per-gallon tax on biodiesel to 20 cents.

The per-gallon tax on ethanol already is 20 cents.

Rounds said he wants to provide the same incentive for ethanol use to truckers and other consumers of diesel. Offering the discounted tax rate for biodiesel would encourage production of the fuel made mostly from soybeans, he said.

Tax breaks would not start until biodiesel production capacity in the state reaches 20 million gallons annually. The tax break would end once production reached about 40 million gallons annually.

Biodiesel, Government, Legislation

NBB to Truckers: Biodiesel Getting Better

John Davis

worktruckshow.jpgOfficials with the National Biodiesel Board are telling those who depend on their trucks… and the fuel they put in those trucks… for their living that the quality of biodiesel is getting better.

This story posted on Truck News.com says the NBB’s Richard Nelson has addressed those attending this week’s National Truck Equipment Associations’ Work Truck Show in Atlanta, Georgia:

“We tell you the good, the bad and the ugly – I’m not hear to sugar-coat this,” Nelson told delegates during the show’s Hybrid Truck and Alternative Fuels Summit.

Nelson admitted that ensuring the quality of biodiesel remains the biggest challenge facing the expanding industry. Biodiesel demand in the US skyrocketed to 450 million gallons in 2007, nearly doubling from the 250 million gallons consumed the previous year, Nelson pointed out.

“We are expanding, we’re more than a drop in the bucket,” Nelson said. “But we’re not going to replace all the diesel fuel, we don’t have the feedstocks to do that.”

The National Biodiesel Board says the industry aims to produce volumes equal to 5% of on-road diesel fuel used in the US by 2015, which totals 1.85 billion gallons per year. In order to meet that target, Nelson said the industry must overcome two key challenges: fuel quality and feedstock availability.

“Simply put, B20 (or any other blend) will not be a factor if fuel quality can not be met on a consistent basis,” admitted Nelson. The industry has developed a standard called ASTM D 6751-07b which must be met by all producers in order to qualify for US tax credits and to become road-legal. It includes limits for 18 different properties and is feedstock-neutral. The increased emphasis on quality appears to be working, Nelson said.

Nelson also pointed out to attendees that just two years ago, 60 percent of all biodiesel did not meet the standard. Today, only about 10 percent falls short. He urged trucking companies to make sure they use a reputable supplier when using buying biodiesel for their trucks.

Biodiesel

Ethanol is a Classic Hit

Cindy Zimmerman

You can’t turn a corner at the 2008 Commodity Classic trade show without seeing something about ethanol. A record crowd is attending the Classic this year – more than 4450 people and over 140 media are in Nashville and the corn-fed enthusiasm is driven in a large part by the ethanol buzz.

Everybody who is anybody in the ethanol industry is here – the Ethanol Promotion and Information Council, Renewable Fuels Association, American Coalition for Ethanol, National Ethanol Vehicle Coalition, 25 by ’25 and more. Not to mention that ag input dealers from machinery to seed are touting products to help growers produce more corn per acre for both food and fuel.

But its only just begun. Friday will feature Secretary of Agriculture Ed Schafer during the general session followed up by a John Deere Learning Center Session on Starch and Cellulose as Ethanol Feedstocks. And Saturday night everybody will be “Corn Fed” with a concert featuring the lovely and talented Shannon Brown.

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

2008 Commodity Classic Photo Album

Commodity Classic, Ethanol, John Deere, News

Introducing Ethanol Retailer Magazine

Chuck Zimmerman

Robert White at National Ethanol ConferenceThe Ethanol Promotion and Information Council is now in the publishing business after announcing the introduction of “Ethanol Retailer” magazine this week. Robert White, Publisher, is pictured (center) during a panel he participated in on E85 during the National Ethanol Conference. I interviewed Robert about the new venture and the panel he was on.

Ethanol Retailer is the only magazine dedicated to reaching over 22,000 independent fuel retailers from their own viewpoint. These retailers are the backbone of the ethanol market, servicing over 6.8 million flex-fuel vehicles.

“We’ve broken new ground with this magazine,” said Robert White, publisher and director of operations for EPIC. “No other single publication addresses the higher blends of ethanol from a fuel retailer standpoint.”

The quarterly magazine addresses ethanol from a business case, and includes the latest ethanol news, facts and resources, fuel retailer success stories, and ethanol government updates.

You can listen to my interview with Robert here: [audio:http://www.zimmcomm.biz/rfa/nec-08-white.mp3]

National Ethanol Conference Photo Album

Audio, EPIC, Ethanol, National Ethanol Conference, News

Wind Power Outpacing Line Capacity

John Davis

powerlines.jpgThe sudden skyrocketing of wind energy production, especially in areas of the Midwest and rural parts of Texas and California, is outdistancing the the capacity for the nation’s high-voltage lines to get that clean electricity into the nation’s cities.

This story from USA Today says the problem could keep some projects from even getting started and states from meeting their renewable energy goals:

Wind power depends on a robust transmission grid. Wind farms are in remote reaches where gusts are strongest, while the greatest power demand is in cities.

Until now, wind developers have piggybacked on existing wires, says analyst Stow Walker of Cambridge Energy Research Associates. But after wind energy soared 45% last year, spare transmission capacity is depleted. Wind power generates more than 1% of U.S. electricity.

Stringing new wires is easier said than done. Wind developers won’t go ahead with projects until transmission lines are in place, and utilities are loath to build the lines until they’re sure the developers won’t back out. Also, the first wind developer in an area is often asked to shoulder much of the $1.5 million-per-mile cost of a high-voltage line.

In Texas, which has about 25% of U.S. wind power, more eye-popping growth in 2008 is expected to push generation past transmission capacity by 65% by year’s end, says Bill Bojorquez, vice president of the Electric Reliability Council of Texas, a power-grid manager.

Some areas are trying to solve the problem by combining assets to put in the transmission lines, because while it only takes 18 months to put in the wind farm, the power line to get the energy to the consumers can take five to 10 years.

Wind