Familiar Face to Lead Renewable Energy Market

John Davis

Texas flagFor a long time, Texas was known to be a leader in the non-renewable energy fields… in particular, the petroleum market. But it looks like the Lone Star State is now poised to dominate the green fuel picture as well.

This story in the Houston Chronicle says Texas will lead the nation in renewable energy production by 2025, and could gain $22.8 billion in economic activity each year and more than 170,000 jobs overall:

The state’s energy production, which would supply about 4 percent of the U.S. needs in 2025, would come from biofuels, wind and solar power. Texas already leads the nation in wind energy production.

Texas’ projections come from a two-year study by the University of Tennessee Department of Agricultural Economics. The report, which looked at the 48 contiguous states, was commissioned by the National 25x’25 Alliance, a group working toward having 25 percent of the country’s energy come from renewable sources by 2025.

If the report’s estimates pan out, the economic impact nationwide in 2025 will be $700 billion annually and create 5.1 million jobs, mostly in rural areas.

Ironically, Texas Governor Rick Perry and the state legislature are, so far, are unwilling to sign on to that national “25 by 25” effort.

Biodiesel, Ethanol, News, Wind

Ethanol Stocks Enjoying a Rise

John Davis

Buoyed by developments in the U.S. House of Representatives working on an energy bill that calls for more alternative fuel use, stocks in ethanol producers are rising.

This AP story, appearing on the financial web site Forbes.com, says the U.S. Senate has already approved an alternative-fuel rich version last week:

Friedman Billings Ramsey analyst Kevin Book expects the full bill to be released Thursday, with a vote coming in early July. He expects the bill will contain $15 billion to $20 billion in tax credits for alternative and renewable energy.

Here are the results from some key stocks in the sector:

Aventine Renewable Energy Holdings (nyse: AVR – news – people ) Inc. gained 94 cents, or 6.5 percent, at $15.45.

VeraSun Energy Corp. (nyse: VSE – news – people ) rose 5 cents to $13.30

Pacific Ethanol (nasdaq: PEIX – news – people ) Inc. lost 2 cents at $12.61.

US BioEnergy Corp., up 39 cents to $11.18.

Andersons Inc. (nasdaq: ANDE – news – people ) moved up 46 cents to $44.85.

Ethanol, News

Two Ethanol Plants Win EPA Awards

John Davis

The Environmental Protection Agency has handed out Energy Star awards to two Midwest ethanol plants… recognizing their efforts to reduce energy consumption and greenhouse gas emissions that equal the amount of pollution from nearly 6,000 cars a year. The awards were presented Wednesday at the 23rd Annual International Fuel Ethanol Workshop and Expo in St. Louis.

According to an EPA press release, Macon Municipal Utilities in Macon, Missouri and Adkins Energy, LLC in Lena, Illinois were honored for using what’s called Combined Heat and Power (CHP) to reduce energy usage:

Macon Municipal UtilitiesOne of the award winners, Macon Municipal Utilities reduced their energy use by 25 percent. Macon Municipal Utilities installed a 10 megawatt (MW) natural gas-fired combustion turbine CHP system at its 45 million gallon-per-year ethanol plant in Northeast Missouri. The CHP system will likely reduce greenhouse gas emissions by an estimated 28,000 tons per year, which is equivalent to the annual emissions of more than 4,500 cars.

Adkins logoAt its 40 million gallon-per-year ethanol plant in Illinois, Adkins Energy LLC, decreased their energy use by 15 percent with a 5 MW natural gas-fired combustion turbine CHP system. The CHP system reduces greenhouse gas emissions by an estimated 8,700 tons per year, which is equivalent to the annual emissions of 1,400 cars.

RFAThanks to the Renewable Fuels Association for sponsoring coverage on Domestic Fuel of the 2007 Fuel Ethanol Workshop.

Ethanol, FEW, News, RFA

Royal Riding on Biodiesel

John Davis

Prince CharlesIn an effort to be more friendly to the planet, Prince Charles says he is using biodiesel in a couple of his personal vehicles… and might even use the green fuel on the Royal Train.

This story appeared in the Seattle Post Intelligencer:

The report — printed on recycled paper in vegetable-based ink — said the prince had reduced the number of plane and helicopter journeys he takes, introduced green electricity at Highgrove, and converted his Jaguar and Land Rover vehicles to run on biodiesel fuel from used cooking oil. Plans also are being discussed to convert the royal train to biodiesel, said the prince’s principal private secretary, Sir Michael Peat.

The Prince’s office went on to say that Charles has reduced his carbon footprint by reducing the amount of air travel, and when he does have to fly, invests in a company that plants trees to offset that travel.

Biodiesel

Solving the Glycerin Glut

John Davis

Biodiesel is riding the wave of record production that only looks to get bigger as Americans yearn for the greener fuel to help break the addiction on foreign oil. That’s the good news. The bad news is the industry is facing a glut of a biodiesel by-product called glycerin.

But researchers at Rice University have found a way to make ethanol out of that glycerin. This press release from the school explains more:

Ramon Gonzalez“We identified the metabolic processes and conditions that allow a known strain of E. coli to convert glycerin into ethanol,” said chemical engineer Ramon Gonzalez. “It’s also very efficient. We estimate the operational costs to be about 40 percent less that those of producing ethanol from corn.”

Gonzalez said the biodiesel industry’s rapid growth has created a glycerin glut. The glut has forced glycerin producers like Dow Chemical and Procter and Gamble to shutter plants, and Gonzalez said some biodiesel producers are already unable to sell glycerin and instead must pay to dispose of it.

“One pound of glycerin is produced for every 10 pounds of biodiesel,” said Gonzalez, Rice’s William Akers Assistant Professor in Chemical and Biomolecular Engineering. “The biodiesel business has tight margins, and until recently, glycerin was a valuable commodity, one that producers counted on selling to ensure profitability.”

Researchers say the process is greener than other methods that use chemicals… and more economical.

Biodiesel, Ethanol, News

Arkansas to Get 150 MGY Biodiesel Plant

John Davis

Consolidated BiofuelsConsolidated Biofuels and International Bio Fuels Corp. have announced plans to jointly open a biodiesel plant in Arkansas… one that will be among the biggest in the country.

IBF logoThe refinery will be built on a 65 acre lot on the Mississippi Port of Yellow Bend and will produce 150 million gallons of biodiesel and 70 million bushels of soybean oil crush annually. This Consolidated Biofuels company press release says the plant would be in the heart of Arkansas’ soybean belt.

The project’s well-situated feedstock sourcing entity is confident that the current and future agricultural and animal feedlot production within the 100 mile radius around Yellow Bend will be sufficient to supply the project’s crush oil requirement and also to regionally utilize all of the crush mill’s meal production for use as a premium animal feed source.

(Consolidated CEO, Daniel L.) Honeycutt also stated that, “I am more than impressed by the leadership and strong vision demonstrated by the public and private sectors in Chicot County and at the State Capitol. Both Consolidated and IBF are looking forward to becoming fully engaged as good corporate citizens of Arkansas and Chicot County.”

Mr. Marty Johnson, President of International Biofuels (www.ibfco.com) stated, “This facility represents many months of very intense work and planning to build what will become, when it is fully operational, the largest combination feedstock and biodiesel production facility of its kind in the world.”

The plant is expected to be operational in 2008.

Biodiesel

Enhancing Ethanol Production

Cindy Zimmerman

FEW Pioneer DuPont and FOSS North America today announced an agreement that will help farmers and ethanol producers better understand ethanol yield potential of grain corn being delivered to ethanol plants. The agreement, announced during the Fuel Ethanol Workshop, provides FOSS rights to technology developed by DuPont.

Under terms of the agreement, DuPont business Pioneer Hi-Bred is providing to FOSS proprietary Ethanol Yield Potential calibration technology for use in FOSS grain analyzers. The technology provides estimated ethanol yield in terms of gallons per bushel.

FEW Pioneer Expo“This technology is a significant milestone in helping increase ethanol output per acre,” said Russ Sanders, Pioneer Director of Marketing. “In FOSS instruments, the Pioneer Ethanol Yield Potential Calibration provides nearly instant prediction of ethanol yield potential in corn grain and provides an estimated yield in gallons per bushel terms.”

“This technology will allow ethanol producers to work with farmers to increase the amount of ethanol they produce,” said Jeff Bodingheimer of FOSS North America.

Listen to Pioneer/FOSS press conference announcement here: [audio:http://www.zimmcomm.biz/pioneer/pioneer-foss-media.mp3]

Read press release here.

RFAThanks to the Renewable Fuels Association for sponsoring coverage on Domestic Fuel of the 2007 Fuel Ethanol Workshop.

Audio, Ethanol, FEW, News, RFA

Ethanol From Corn Cobs

Cindy Zimmerman

POETAt the 2007 Fuel Ethanol Workshop in St. Louis on Wednesday, the nation’s largest dry-mill ethanol producer announced the successful production of cellulosic ethanol from corn cobs.

POETAt a press conference, POET CEO Jeff Broin said, “Along with corn fiber, cobs will be the primary feedstock we will use to make cellulosic ethanol at our proudction facillity in Iowa. For a host of reasons, POET is focused on corn fiber and cobs as the first cellulosic feedstock for our production facilities. First, the fiber that comes from our fractionation process will provide 40 percent of our cellulosic feedstock from the corn kernels that we are already processing in our facility. That means that nearly half of our cellulosic feedstock comes with no additional planting, harvest, storage or transportation needs.”

POETDr. Mark Stowers, VP of Research & Development for POET, says they expect the use of corn cobs for ethanol production to result in an 11 percent increase in the amount of ethanol per bushel of corn. “And when you look at it on an acreage basis, that’s about 27 percent more ethanol per acre.”

Broin says they are still researching the value of the corn cobs, but they are anticipating paying famers between $30 and $60 per ton, “which should make it economically viable as a profit center for them.”

The cellulosic project LIBERTY that POET is jointly funding with the Department of Energy will convert an existing 50 million gallon per year dry-mill ethanol plant in Emmetsburg, Iowa into a commercial cellulosic biorefinery.

Listen to Broin’s press conference announcement here: [audio:http://www.zimmcomm.biz/rfa/poet-announcement.MP3]

Read press release from POET.

RFAThanks to the Renewable Fuels Association for sponsoring coverage on Domestic Fuel of the 2007 Fuel Ethanol Workshop.

Audio, Cellulosic, Ethanol, FEW, News, RFA

More Than Just a FEW

Cindy Zimmerman

Bob DinneenJust a few ethanol industry pioneers were present at the first Fuel Ethanol Workshop in St. Louis some 23 years ago.

This week, attendees at the 2007 FEW filled the floor of the America’s Center arena, numbering more than 5200, with over 700 exhibitors filling the expo hall.

“How many in this audience were here at that very first one?” asked Renewable Fuels Association president Bob Dinneen at the opening general session. “You ought to stand up.” Not very many people were standing, but Dinneen noted that they are the true pioneers of the ethanol industry. “Those are the people that deserve a lot of credit for where our industry has come.”

As the first speaker for the event, Dinneen outlined the success of the industry and stressed the importance of issues that need to be addressed for future growth, including food vs. fuel, quality and safety.

He said that 20 years from now participants at the conference will fill the entire arena. “Each of you will have some measure of pride to take in what we are building,” he said.

Listen to Bob Dinneen’s opening address from FEW here: [audio:http://www.zimmcomm.biz/rfa/few-07-dinneen-speech.MP3]

Audio, Ethanol, FEW, News, RFA

New Device to Cut Ethanol Costs

John Davis

USDA Agricultural Research Service scientists in California have come up with a device that is purported to increase the efficiency of ethanol refineries.

This story from the ARS web site says chemical engineers Richard D. Offeman and George H. Robertson at the ARS Western Regional Research Center in Albany, Calif., believe their device using special permeable plastic membranes will reduce energy costs of producing ethanol from fermented broths of corn, or straw and other kinds of biomass feedstocks:

Ethanol device
The technology will help to address the serious concern regarding the energy efficiency of bioethanol production, according to Robert L. Fireovid, ARS national program leader for process engineering and chemistry, Beltsville, Md.

The researchers’ invention, called a spiral-wound liquid membrane module, could potentially replace the widely used process of distilling ethanol from fermentation broths. The module offers ethanol producers the important advantage of combining two separation processes, extraction and membrane permeation, in one piece of equipment.

Right now, energy is the second biggest cost in ethanol production. Feedstocks, of course, are first.

Ethanol, News