Committee Passes Energy Bill

Cindy Zimmerman

The Senate Energy and Natural Resources Committee has approved energy legislation that calls for 36 billion gallons of renewable fuels use by 2022. The bill also provides the necessary incentives to spur the development of commercial-scale cellulosic ethanol production.

The bill received bi-partisan support in the committee, with eight Republicans and 12 Democrats voting in favor of passage. Three Republicans opposed the measure.

In addition to increasing renewable fuels production, the legislation includes loan guarantees and other incentives for ethanol research and plant construction, support for production of “plug-in” gas-electric hybrids and requirements for more efficient appliances and light bulbs.

An overall goal would be established of reducing gasoline use by as much as 45 percent below what it otherwise is expected to be in 2030.

Biodiesel, Cellulosic, Energy, Ethanol, Government, News, Production

Ethanol Helps Rural America

Cindy Zimmerman

RFAThe U.S. House of Representatives Committee on Small Business held a hearing Thursday on the impact of renewable energy production on rural America.

Among those who testified was Renewable Fuels Association president Bob Dinneen, who told the committee that ethanol production is providing a dramatic economic stimulus in rural America.

“The production of ethanol has sparked new capital investment and economic development in rural communities across America,” said Dinneen. “Farmer-owned ethanol plants account for half of the U.S. fuel ethanol plants and almost 40 percent of industry capacity. In fact, the National Farmers Union recently released the findings of a study they commissioned by the University of Missouri on the concentration of agricultural markets. The study showed an increased concentration in every industry except ethanol production. The study also found that ethanol production is the only agricultural sector in which concentration has steadily decreased.”

Dinneen added that, ccording to RFA’s analysis, a 100 million gallon ethanol facility will generate $406 million for the local economy and increase the size of the state economy by $223 million.

Ethanol, Government, News

Press Meets Greening of Racing

Cindy Zimmerman

NPC“The Greening of Racing: Ethanol Powers the Indianapolis 500″ will be the topic at the National Press Club on Friday when racing legend Bobby Rahal and Tony George, CEO and founder of the Indy Racing League, will be the featured guests at the distinguished luncheon speaker series.

The IndyCar® Series — a racing series that features one of the premier sporting events in the world, the Indianapolis 500 — has ushered in a new era in motorsports with its use of 100 percent fuel-grade ethanol. The decision to switch to ethanol follows in the IndyCar Series long history and tradition of race-bred technological and safety innovations. Many of these innovations are incorporated into passenger vehicle designs. In 1911, the first rearview mirror was used in the Indianapolis 500 as an aid to driver safety. Now the series is at the forefront of “the Greening of Racing” as the first in motorsports to embrace a renewable fuel source.

The 91st running of the Indianapolis 500 is scheduled for May 27, 2007.

Domestic Fuel will be covering the National Press Club event.

EPIC, Ethanol, Indy Racing, News, Racing

Kansas Town Goes for Biodiesel Infrastructure Grant

John Davis

Officials in Emporia, Kansas are applying for a $750,000 state grant to help them put in the infrastructure the town will need for a new biodiesel plant set to open in just more than a year.

Renewable Energy GroupAs I told you in an April 15th post, Iowa-based Renewable Energy Group has plans of opening a 60-million-gallon-a-year plant. The Emporia (KS) Gazette reports the grant would build a road and utilities to support the refinery:

City commissioners voted Wednesday to request the money from the Community Development Block Grant fund, a program of the Kansas Department of Commerce. The money would be used for a road, sewer line, stormwater system and water line.

The plant will also need a gas line that Assistant City Manager Mark McAnarney estimated at $700,000 to $800,000. The city will put up the up-front costs on the line, but a portion of it will be repaid by the biodiesel company.

Construction on the plant is to begin this summer.

Biodiesel

New England to Get Major Biodiesel Plant

John Davis

It seems like the big cities on the East Coast have just about everything… except for a big source for biodiesel. Well, that could change soon as New York-based Berkshire Biodiesel builds New England’s biggest biodiesel plant.

This story in the Hartford Courant says the 50-million-gallon-a-year plant is expected to open next year near Pittsfield, Mass. and will make biodiesel from vegetable oil:

Currently, the only New England biodiesel plants are in Bridgewater and Bethlehem, Conn., both of which produce about 500,000 gallons a year, according to the National Biodiesel Board.

But (Berkshires Biodiesel President Garth) Klimchuk said it made sense to open a large-scale plant in New England because so much vegetable oil is delivered to the region’s restaurants and food processing facilities.

“It’s easy to get the supplies we need here, and there’s a huge demand for biodiesel in this area,” Klimchuk said.

Berkshire Biodiesel would be sold within 200 miles of the refinery, covering the cities of Boston, Hartford, Burlington, Vt., and Albany.

Biodiesel

Web Site Promotes Oil from Algae

John Davis

Put together oil and algae and what do you get? Oilgae! It’s not just a clever wordplay, some researchers are getting oil from algae.

A new web site, Oilgae.com, is promoting those new technologies that could prove to be a very viable feedstock for biodiesel:

While a number of bio-feedstock are currently being experimented for biodiesel production, algae have emerged as one of the most promising sources for biodiesel production, for two main reasons (1) The yields of oil from algae are orders of magnitude higher than those for traditional oilseeds, and (2) Algae can grow in places away from the farmlands & forests, thus minimising the damages caused to the eco- and food chain systems.

This India-based web site is a little bare bones right now… no fancy graphics… but there seems to be a lot of information on it. It also shows how much the international community is committed to the biodiesel industry.

Biodiesel, International

POET Groundbreaking in Ohio

Cindy Zimmerman

Right after POET™ opens it’s 20th ethanol production facility this Friday in Iowa, the company will be preparing to break ground on yet another plant, this one in Ohio.

PoetOn May 16, POET will hold a groundbreaking ceremony for POET Biorefining – Marion, located in north central Ohio about 50 miles north of Columbus. When complete, the plant will produce 65 million gallons of ethanol a year from 21 million bushels of corn.

POET has built 25 ethanol production facilities since it was founded 20 years ago and has eight more under construction or in development. POET currently manages 19 ethanol production facilities and is holding a grand opening celebration for its twentieth in Corning, Iowa May 4. With Corning, the total annual production capacity for those 20 facilities is more than 1 billion gallons of ethanol.

Ethanol, Facilities, News

Houston Port in Gulf Ethanol Plans

Cindy Zimmerman

Gulf Gulf Ethanol plans to build a facility for ethanol production and blending near the Port of Houston.

According to the company, the site is being evaluated to accommodate a production facility of 30 million gallons per year of ethanol. Continued engineering studies will be required to determine construction costs and permitting as well as the time line for implementation.

Gulf Ethanol president JT Cloud says location is the company’s primary concern. “This plant is located within a few hundreds yards of the port and has its own rail spur in the backyard in addition to 23 acres available acres for expansion.”

Ethanol, Facilities, News

More DOE Funds for Biofuels

Cindy Zimmerman

DOEThe U.S. Department of Energy (DOE) will provide up to $200 million, over five years to support the development of small-scale cellulosic biorefineries in the United States.

According to a DOE announcement, the funding will be for projects to develop biorefineries at ten percent of commercial scale that produce liquid transportation fuels such as ethanol, as well as bio-based chemicals and bioproducts used in industrial applications. This research aims to advance President Bush’s goal of making cellulosic ethanol cost-competitive with gasoline by 2012, and assist in reducing America’s gasoline consumption by 20 percent in ten years by expanding the availability of alternative and renewable transportation fuels.

Cellulosic, Ethanol, Government, News

Possible US-Europe Biodiesel Trade War Brewing

John Davis

European biodiesel makers are crying foul over U.S. subsidies to biodiesel exporters.

WTO logoAccording to this story posted on WisconsinAgConnection.com, the folks from across the pond are talking about a World Trade Organization investigation and retaliatory tariffs being put on U.S. biodiesel sent to Europe.

According to European media reports, the subsidy allows U.S. exporters to undercut European rivals by at least a quarter, forcing many to cut production and sell at a loss. The US “B99” subsidy is controversial because it benefits exporters. In most of Europe, tax breaks are available only at the point of sale.

The story goes on to say that the big oil companies cashing in on the credit, which irks the National Biodiesel Board as well (see my posts from April 18th – NBB Blasts Conoco/Tyson Biodiesel Plans, April 20th – Dems Also Irked Over Conoco/Tyson Biodiesel Plans, and April 25th – NBB Fights Tax Incentive Abuse), is only making the situation worse.

Biodiesel, International