Conoco Officials Tout Need for Biofuels

John Davis

conoco-phillips.jpgThere’s nothing like a New England town hall meeting, and officials from ConocoPhillips got an earful of Yankee questions from a group at a hotel in New Haven, Connecticut.

The New Haven Independent reports about 100 people turned out to hear what the oil giant had to say and to quiz the officials about the future of energy in this country. The article says the folks got a bit of a surprise:

ConocoPhillips has been saying a lot of things lately that you wouldn’t expect to hear from one of the largest oil companies in the world. Sigmund “Sig” Cornelius, senior vice-president of planning, strategy & corporate affairs, told the crowd that the science is in: “It’s undeniable that the concentration of greenhouse gases in the environment is increasing … We recognize that combustion of fossil fuels contributes to greenhouse gases. We want to be part of the solution.”

The need to increase renewable components of our energy portfolio was a resounding theme throughout the evening. Panelists and audience members alike repeated the need for more biofuels, such as biodiesel, in the nation’s energy portfolio. In response to a question from New Haven State Rep. Robert Megna, [Sabrina Watkins, manager of environmental technology] said that Conoco is investing “tens of millions of dollars” on biofuel research and that while biodiesel holds a tiny percentage of the market share, there is “plenty of room for growth.” She also added that it is a matter of “and, not or”, meaning that Conoco sees biofuels and renewables as one part of diverse fuel portfolio.

Company officials also touted the idea of energy conservation.

Biodiesel, Ethanol, News

Europeans Upset Over American Biodiesel Subisidies

John Davis

ebb.gifThe European Biodiesel Board (EBB) is threatening legal action against American biodiesel subsidies, which they claim as an unfair trade practice.

Grainnet.com reports the Europeans are claiming the U.S.’s $1-a-gallon biodiesel mixture credit is artificially reducing the price of biodiesel sold in Europe by about 60-90 cents a gallon… compared to what European biodiesel goes for:

The EBB’s press release threatened action both before European antidumping authorities and before the World Trade Organization.

The U.S. biodiesel subsidies are set to expire at the end of 2008, but are quite likely to be extended.

Diesel fuel is used far more extensively for passenger cars in Europe than in the United States, and the European Union has a goal of 10 percent use of biofuels by 2020.

However, the EBB claims that the U.S. subsidies (which the EBB asserts are also taken advantage of by Asian biodiesel producers who transship through the United States) are shutting down European biodiesel production and making expansion of such production difficult.

The EBB says American biodiesel being imported to Europe went from 90,000 metric tons last year to 700,000 metric tons this year… despite the fact that the American soybean-based biodiesel is more difficult to get into the European Union.

Biodiesel, International

Hydrogen Report Calls for 40% Growth in Next Five Years

John Davis

sric.gifA new report by the SRI Consulting says consumption of hydrogen will grow 40 percent in the next five years… thanks to environmental regulations and the inferiority of current sour feedstocks.

This press release from SRIC says a big change that will need to take place during that time is the where we will get the hydrogen:

Bala Suresh, Senior Consultant at SRIC said, “The severe environmental regulations on sulfur in diesel are responsible for the increased consumption. The process of removing sulfur consumes hydrogen, and it is estimated in the future that diesel production will increase relative to gasoline.”

SRIC’s 2007 Hydrogen report estimates that globally 630.8 billion cubic meters (52.6 million metric tons) of hydrogen were consumed in 2006. Approximately 96% of all hydrogen is from fossil fuels, with natural gas being the most frequently used at an estimated 49%, followed by liquid hydrocarbons with 29%, coal with 18% and electrolysis and other sources at about 4%.

The increasing use of hydrogen deficient heavy crude as feedstock material in refineries is expected to also contribute to the growing hydrogen consumption. In addition, oil-sands processing, gas-to-liquids, and coal gasification projects that are ongoing, all require enormous amounts of hydrogen and will boost the size of the market significantly.

Lead Author Stefan Schlag commented “Hydrogen fuel cells have a long way to go to become a widespread energy source in transportation. Technical problems are numerous and the infrastructure necessary for area-wide distribution of hydrogen requires massive investments.” Mr Schlag continued “To make hydrogen meaningful as a future energy carrier, a tremendously larger percent of hydrogen should be produced through electrolysis of water, with energy from renewable resources, preferably solar and wind.

The 250-page report is available by ordering through SRIC’s web site.

Hydrogen

US Ethanol Introduces Biofuel Station in Washington State

John Davis

Use Ethanol LLCThe first USETHANOL Biofuel Station is will be running its pumps beginning next Monday, October 29, 2007. Consumers will be able to fill up with biofuels at the station in Longview, WA after the official opening at 11:00 am PDT.

A Grand Opening Celebration and Ribbon Cutting Ceremony will be held at the new Biofuel Station with executives of US Ethanol, LLC and Wilcox & Flegel Oil Co. on hand. Local and state government officials will be invited along with numerous representatives of the Longview/Kelso and Vancouver business communities.

The USETHANOL Biofuel Station is believed to be the first such station in Western Washington and will kick off the establishment of at least twenty five locations along the I-5 corridor in Washington and Oregon at which USETHANOL(TM)’s branded E85 product will be available to motorists who own flexible fuel vehicles.

Products available at the USETHANOL(TM) Biofuel Station include E85, unleaded regular, unleaded premium and B5 biodiesel. The unleaded gasoline products will contain ten percent ethanol by volume.

Biodiesel, Ethanol, Facilities, Promotion

Whole Foods Awarded for Harnessing Wind Power

John Davis

Whole Foods MarketThe world’s self-proclaimed leader in natural and organic grocery sales has earned special recognition form the Environmental Protection Agency. The EPA has awarded Whole Foods Market its Green Power Partner of the Year award for the second consecutive year, recognizing the grocer’s leadership in accelerating the development of new renewable energy capacity nationwide.

This is the fourth consecutive year Whole Foods Market has been recognized with a Green Power Leadership Award by EPA, after being recognized initially in 2004 for the company’s growing commitment to green power purchasing.

EPA Green Power LeadershipIn 2007, Whole Foods Market is being recognized for increasing its green power purchasing to include more than 509 million kilowatt-hours of wind-based renewable energy credits. This is enough renewable energy to offset 100 percent of the electricity used in all of its stores, facilities, bake houses, distribution centers, regional offices and global headquarters in the U.S. and Canada. Whole Foods Market is the only FORTUNE 500 Company to offset 100 percent of its electricity use with renewable energy credits.

The release also mentions Whole Food’s committed effort to reduce its carbon footprint by fueling the grocer’s trucks with biodiesel at four of the company’s nine distribution centers.

Biodiesel, Energy, Wind

Coal: A Tried and True But Viable Energy Option?

John Davis

Americans for Balanced Energy ChoicesCoal-based electricity is emerging as a qualified energy source for one concerned group as the nation heightens its energy awareness. The Americans for Balanced Energy Choices have taken it upon themselves to promote a not-so-new energy option, saying sometimes the old way is the better way.

With energy security issues weighing heavily on the minds of Americans by foreign oil prices topping $90 a barrel for the first time, Americans for Balanced Energy Choices (ABEC) today launched a new campaign to raise the public’s awareness of the inherent benefits of coal-based electricity.

The America’s Power campaign reminds consumers that 50 percent of their electricity comes from coal, and strives to ensure the development of energy and environmental policies that will allow the American public to enjoy the benefits of affordable, secure and reliable electricity well into the future. The campaign also reinforces the goal of ensuring ultra-low/near-zero emissions, including the capture and storage of greenhouse gases.

ABEC’s new campaign comes at a time when energy issues are at the forefront of presidential, national and state policy discussions. As ABEC demonstrated in the report “The Rising Burden of Energy Costs on American Families, 1997-2007” the country’s poorest families will spend nearly 46 percent of their income on energy and transportation costs. These concerns are prompting policy makers across the nation to take a new look at coal’s role in meeting America’s growing demand for affordable and reliable energy.

Energy

Soybean Growers Concerned About Biodiesel Support Funding

John Davis

asa_logo.jpgThe American Soybean Association (ASA) is raising concerns about the level of government funding to alternative energy sources, particularly biodiesel, in the Senate’s version of the Farm Bill.

This article from Grainnet.com says provisions in the energy portion of the bill are among the group’s concerns:

In the Energy Title, ASA is very concerned with the level of funding provided for payments to domestic biodiesel producers under the Bioenergy Program for Advanced Biofuels.

Biodiesel producers have seen prices for their feedstocks, including soybean oil, more than double in the past year as aggressive policies to raise ethanol production have shifted nearly 12 million acres from soybeans to corn this year.

As a result of higher feedstock costs, the biodiesel tax credit is not sufficient to ensure competitiveness of domestic biodiesel in the U.S. market.

“An additional payment is essential to ensure the viability of our fledgling domestic biodiesel industry in the current volatile energy market,” [ASA President John] Hoffman said.

Unfortunately, the funding level provided in the proposed bill would not allow a payment sufficient to make domestic biodiesel competitive.

ASA is also calling for payments for all biodiesel production, not just incremental production. The group also says one proposal in the bill that would make biodiesel producers choose between biodiesel payments under the Bioenergy Program and the small biodiesel producer tax credit would serve as a disincentive for beginning biodiesel producers.

Biodiesel, Government, Legislation

Rockers, Biofuel Makers Appeal to Congress

John Davis

The U.S. House Select Committee on Energy Independence will hear from biofuel producers, environmentalists, and even some music stars when it holds a hearing entitled “The Grass is Greener: The Future of Biofuels,” tomorrow morning (Wednesday, October 24th) at 9:30 EDT in Washington, D.C.

adamgardner.jpgAmong those testifying before Rep. Edward J. Markey’s (D-Massachusetts) committee, musician Adam Gardner (left) of the band Guster… founder of the non-profit group “Reverb” which has helped other bands, including the Barenaked Ladies, the Dave Matthews Band, Alanis Morrisette, John Mayer, Norah Jones, The Fray, and the Red Hot Chili Peppers green up their tours.

This website has been set up so you can hear live, streaming audio of the event. Remember, that’s Wednesday morning, October 24th (tomorrow) at 9:30 EDT.

Check it out!

Biodiesel, Ethanol, Government, Legislation, News

Missouri to Open Seventh Biodiesel Plant; More on the Way

John Davis

A group of farmers and businessmen in Northern Missouri has announced they will open a five-million-gallon-a-year biodiesel lant near the town of Moberly. When opened, that will give the Show-Me State seven biodiesel plants with at least five more in the works.

This story in the Columbia Daily Tribune says the Producers’ Choice Soy Energy’s soybean-based refinery is just in the planning stages right now:

Consultant Greg Walker of Vantage Capital Resources said the project needs to raise at least $7.5 million from investors, and half of that amount must come from soybean producers to qualify for tax incentives. Loans will provide the rest of the financing for the project. Walker said prospective investor meetings are planned for Columbia early next month.

“Because it’s green and environmentally sound energy, we think that we can close out the investment campaign pretty quickly,” he said.

dale-ludwig.jpgDale Ludwig, chief executive officer of the Missouri Soybean Association, said the facility planned in Moberly “will pretty much do it” for the construction of Missouri plants given statewide soybean production. He said statewide biodiesel production is expected to peak at about 200 million gallons a year once all proposed plants are up and running.

Ludwig believes biodiesel output in Missouri could hit 125 million gallons a year as early as next year.

Biodiesel

Energy and Farm Bill Updates

Cindy Zimmerman

ACEEthanol interests are hoping that Congress might finally get the energy bill into conference committee this week.

Brian Jennings with the American Coalition for Ethanol (ACE) says, “It sounds like Democrats and Republicans are beginning to work out some of the political differences and procedural differences they had in moving forward,” Jennings says. “I would predict that hopefully this week we will have an agreement to move forward on a bi-partisan, bi-cameral conference.”

There are some major differences to be worked out. For one, the House does not have the Renewable Fuel Standard that is present in the Senate bill. The Renewable Fuel Standard is a major goal of many in Congress. Senators Tom Harkin, D-Iowa, and Barack Obama, D-Ill., have introduced stand-alone legislation that would immediately update the Renewable Fuels Standard and require three-billion gallons of biofuels from cellulosic sources.

John ThuneMeanwhile, the Senate Agriculture Committee is finally scheduled to mark up a farm bill Wednesday morning, with chairman Tom Harkin announcing agreement on structure last week.

Senator John Thune (R-SD) says the Senate version of the farm bill will include his legislation designed to promote the production of cellulosic ethanol produced from switchgrass, other native grasses and biomass feedstocks such as wood chips. Thune’s cellulosic ethanol bill, officially known as the Biofuels Innovation Program (BIP), was introduced in May.

Thune’s legislation includes cost-sharing for establishing energy-dedicated crops and paying competitive rent until the energy dedicated crops are sold. The legislation also encourages feedstock production by providing per-ton payments to producers of biomass, such as corn cobs, perennial grasses, and wood chips.

Cellulosic, Energy, Ethanol, Government, Legislation, News