Lawmakers Ask Obama to Boost Biodiesel

John Davis

epa-logoAs the Environmental Protection Agency (EPA) is poised to release its decision on the amount of biodiesel and ethanol to be mixed into the nation’s fuel supply (and we’re hearing word now that decision might be delayed until the Fall), a bi-partisan group of lawmakers is making its appeal to the White House to allow biodiesel to keep growing. This news release from the National Biodiesel Board cites the letter from 52 lawmakers who are concerned about the EPA’s current proposal to reduce the amount of biodiesel to be required for obligated parties under the Renewable Fuel Standard (RFS)

“During your time in office you have supported the development and growth of the biodiesel industry. Now, biodiesel producers around the nation have the ability to generate nearly two billion gallons a year of the only EPA-approved advanced biofuel, which is commercially available across the United States,” the lawmakers wrote in a letter to President Obama. “Therefore, we believe now is not the time for a critical shift in biodiesel policy. We urgently ask that you raise biodiesel’s RVO for 2014 above 1.28 billion gallons.”

The letter, which was led by Reps. Collin Peterson, D-Minn., and Adam Kinzinger, R-Ill., can be found here. The lawmakers signing the letter represent 22 states.

In a draft RFS rule released in November, the EPA proposed holding biodiesel volumes at 1.28 billion gallons – a sharp drop from last year’s actual production of nearly 1.8 billion gallons. Biodiesel producers around the country have warned that such a proposal will cause severe contraction in the industry. A nationwide survey of producers conducted by the National Biodiesel Board (NBB) in April found that more than half have already idled a plant this year and 78 percent have reduced production from last year. Nearly two-thirds – 66 percent – have already laid off employees or anticipate doing so.

NBB officials have previously expressed their shock and disappointment on the proposal because of the success biodiesel has already shown in exceeding the targeted amounts of renewable fuels. They call on the Obama Administration “to finalize a strong RFS volume as quickly as possible.”

Biodiesel, EPA, Government, RFS

Biofuels and Wind Waiting on Action

Cindy Zimmerman

Environmental Protection Agency administrator Gina McCarthy said earlier this year that they planned to issue a final rule on the proposed volume requirements under the Renewable Fuel Standard (RFS) in “late spring or early summer” but spring is gone and summer is here and there’s been no word yet.

grassley-headSenator Chuck Grassley (R-IA) said last week that he thought the decision was delayed now until fall. “The fact that they’ve delayed it is a little bit of good news,” he said during an interview on June 19. “The bad aspect of it is that it retards investment in ethanol … and it doesn’t just effect ethanol but biodiesel too.” Grassley said he really doesn’t know when the EPA will announce the final rule, although he does believe it will be better than the proposal released in November. “I don’t think they’ll be that bad, but whatever is less than present law is going to be bad anyway, maybe just less bad.”

Meanwhile, Grassley says the wind energy industry, which is huge in Iowa, is still waiting on Congressional action to extend tax credits. “As a father of the wind energy tax credit, I want to get it renewed,” he said. “It’s part of a package of 53 renewals that have to be passed by the Senate and it’s up to Reid when he brings it up … we don’t get any indication from him on it.” Grassley says he will continue to push to make that happen.

Biodiesel, biofuels, EPA, Ethanol, Ethanol News, Government, RFS, Wind

CBO Releases RFS Report

Joanna Schroeder

The Congressional Budget Office has released a new report, “Renewable Fuel Standard: Issues for 2014 and Beyond“. The evaluates how much the supply of various types of renewable fuels would have to increase over the next several years to comply with the CBO RFS report June 2014Renewable Fuel Standard (RFS). The U.S. Environmental Protection Agency (EPA) has yet to finalize its 2014 proposed rule, that if finalized based on initial numbers, would set the growth of biofuels backwards. The report also examines how other issues, such as fuel prices and emissions would vary by 2017, under three RFS scenarios:

  • The EISA volumes scenario, in which fuel suppliers would have to meet the total requirement for renewable fuels, the requirement for advanced biofuels, and the cap on corn ethanol that are stated in EISA for 2017—but not the requirement for cellulosic biofuels, because the capacity to produce enough of those fuels is unlikely to exist by 2017;
  • The 2014 volumes scenario, in which the EPA—which has some discretion to modify the mandates of EISA—would keep the RFS requirements for the next several years at the same amounts it has proposed for 2014; and
  • The repeal scenario, in which lawmakers would immediately abolish the RFS.

The report finds that food prices would be similar in all scenarios, including the dismantling of the RFS. However, the report finds that advanced biofuels must increase substantially to meet requirements, and that the increased use of all biofuels would increase the price of fuel at the pump.

In response to the report, Brooke Coleman, executive director of the Advanced Ethanol Council (AEC) noted that the report fails to take into account basic realities when it comes to assessing the program.

“Some reports are simply not worth reading, and this is one of them. You cannot assess the impacts of the RFS without looking at the benefits of reducing consumer demand for gasoline and diesel fuel,” said Caeclogooleman. “That’s the entire point of the RFS and the CBO simply states that ‘it did not account for that effect in this analysis.’ To put that omission in perspective, an oil economist recently concluded that the RFS saved motorists at least hundreds of billions of dollars in 2013 by adding the equivalent of an additional OPEC country to U.S. gasoline supplies during times of extreme tightness between supply and demand.”

“Whatever the savings are, an analysis of a foreign oil displacement program that does not look at the benefits of displacing foreign oil demand should be dismissed out of hand. The gas price claims are really strange as well,” continued Coleman. “A cornerstone assumption in the report has RFS-RIN prices so high that gasoline retailers could give renewable fuel blends away for free and still make a profit. Needless to say, this is never going to happen. CBO reports are supposed to be impartial and objective, and therefore informative.”

Coleman concluded, “This particular report appears to detail a fantasy world that does not inform the current debate.”

advanced biofuels, AEC, Biodiesel, Ethanol, Ethanol News, RFS

Two Dot Wind Project Completed

Joanna Schroeder

Two Dot Wind farmThe Two Dot Wind Project has been completed. The project is located in Two Dot, Montana, and the wind farm is owned by NJR Clean Energy Ventures, an unregulated clean energy subsidiary of New Jersey Resources). The 9.73 megawatt project is the company’s first onshore wind project, which was energized earlier this month. The energy produced will be sold to NorthWestern Energy under a 25-year power purchase agreement (PPA).

Mortenson Construction was responsible for the design and construction of access roads, foundations, erection, underground electrical collection system and a 100kV substation interconnecting into an adjacent Northwestern Energy transmission line. The Two Dot wind farm is the fifth wind farm the renewable energy contractor has built in the state to date and its 135th wind project constructed since 1995.

“We are very pleased to support NJR’s entry into the wind industry and to be part of the expansion of their renewable energy portfolio,” said Tim Maag, VP and general manager of Mortenson’s Wind Energy Group. “We value our new partnership and their commitment to furthering the growth of our industry.”

Mortenson will begin construction on their second project for NJR, the Carroll County wind farm, located in Iowa in late summer.

Renewable Energy, Wind

Wisconsin Students Go to School with Propane

Joanna Schroeder

Lamers Bus Lines and Badger Bus are increasing their use of propane autogas. Lamars Bus Lines has recently added 41 new Blue Bird Propane Vision school buses expanding its propane fleet to 59 buses. The buses will transport students in Milwaukee Public Schools and feature Blue Bird’s extended range 100-gallone fuel tank. Each bus will travel nearly 9,000 miles each year.

In the past year, Lamers Bus Lines said they have saved over $14,000 in fuel costs by Blue Bird Vision Propane Busswitching to Blue Bird Propane Vision buses. The company is currently installing an onsite 30,000-gallon fueling dispenser that will service the new Milwaukee propane autogas buses.

“Our propane buses have been completely trouble-free,” said Allen Lamers, president of Lamers Bus Lines. “We’ve had no issues what-so-ever on them and the deployment has been smooth. We received comprehensive training from our local dealer, Wisconsin Bus Sales, along with Roush CleanTech and our local propane provider. From all aspects, the buses are logical, simple and require minimal adaptation. Propane autogas is a great option for school buses and we couldn’t be more pleased with our fleet.”

Badger Bus, has been successfully operating propane autogas school buses for the past two years. The contractor is adding 16 new Blue Bird Propane Vision buses, expanding its total propane fleet to 20. The new propane buses will transport students in Madison Metropolitan School District.

The company has a 2,000 gallon propane autogas tank onsite and is currently paying $1.19 per gallon for fuel – a significant savings over its diesel price of $3.48 per gallon. Each buses travels between 12,000 to 14,000 miles each year, and Badger Bus said they are seeing an average annual fuel savings of over $3,500 per bus.

“Badger Bus has been known for its reliable transportation since our founding in 1920. Our experience with Blue Bird’s propane autogas buses has been a very positive, economical experience. Our drivers love the power and quiet operation, our technicians love the ease of service and simplistic engine, and the domestic, affordable fuel provides us with even greater benefits,” said John Meier, co-owner of Badger Bus. “Overall safety is of paramount importance with the students we transport and the safety and environmental benefits of these buses further strengthen our partnership with the community.”

Alternative Vehicles, Propane

Don’t Turn Your Back on the RFS

Joanna Schroeder

With no end in sight on the turmoil in Iraq and oil prices and gas prices on the rise as a result, Americans United for Change (AUFC) have launched a new ad campaign encouraging the U.S. Environmental Protection Agency (EPA) to stay the course and not turn its back on the Renewable Fuel Standard (RFS).

‘Control’ will being airing on national cable stations including MSNBC, CNN and Fox News June 3, 2014 just head of the 4th of July weekend. The strategy is one designed to let people know that preserving the RFS and cheaper choices at the pump for Americans means more stability in gas prices even during times of turmoil in other countries.

The bottom line, says AUFC, now is not the time for the U.S. to slip further into dependency on foreign oil by discouraging ethanol and biodiesel production, which boosts our nation’s economy, rural communities, national security and environment.

Jeremy Funk, communications Director for Americans United for Change said of the new TV campaign, “If anything should give the EPA pause before deciding to roll back the Renewable Fuel Standard, it’s the bubbling turmoil in Iraq. While the escalating violence has yet to significantly disrupt oil production in the region, just speculation that it will has already sent oil prices on their way to a 6-year high heading into the 4th of July weekend.”

Funk continued, “Any time there is unrest in oil-producing regions overseas, it’s a recipe for jittery markets and inflated oil prices back home. It’s the price American consumers pay at the pump again and again living in a nation so reliant on foreign oil. It’s the reason why the nation can’t afford to scale back the RFS now and put all of our eggs in Big Oil’s basket. Big Oil says ‘don’t worry, we’re producing more domestic oil than ever’, but they don’t mention it only amounts to a third of what Americans consume each day. Big Oil doesn’t mention they’re actively trying to widen the domestic supply vs demand gap by spending millions of dollars campaigning to put out of business their cheaper, cleaner renewable fuels competition that accounts for 10 percent of the nation’s gas supply.”

Dismantling the RFS, says Funk, would take away what protection American consumers do have from supply shortages, market whims and Middle East instability. He also notes that not continuing forward with the RFS would undermine America’s national security by requiring more imports from regions whose policies and interests often clash with our own.

This TV ad follows on the heels of several others all focused on keeping the RFS in place including ‘The Kingdom’, ‘Bottom Line’, ‘Simple Choice’, and ‘Why Mess With Success’.

Biodiesel, biofuels, Ethanol, RFS, Video

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFMembers of Iowa’s biodiesel industry hosted Congressman Bruce Braley (IA-01) at the REG Mason City biodiesel plant. The plant is one of 12 in the state hanging in the balance as they await the Obama Administration’s final Renewable Fuel Standard volumes for 2014. The current RFS proposal would set biodiesel volumes at 1.28 billion gallons, a sharp cut from last year’s actual production of nearly 1.8 billion gallons. REG bought the 30-million gallon per year nameplate capacity facility in 2013, and began a $20 million upgrade of the plant shortly after restarting it.
  • Growth Energy has welcomed Vireol Bio Energy LLC as its newest member, bringing total plant membership to 84, with another 85 associate members. Vireol Bio Energy is based in Hopewell, Va.
  • Microgrids are among the most promising tools of modern distribution networks due to their versatility. In North American Microgrids 2014, GTM Research describes the North American microgrid market including a forecast through 2017 and competitive positioning of key vendors, as well as market drivers and barriers that shape the current and emerging microgrid landscape.
  • Pattern Energy Group has announced the acquisition of AEI’s 38.5% net ownership interest in the El Arrayan Wind project. The project, which was completed earlier this month and is now fully operational, is located approximately 400 km north of Santiago on the coast of Chile. At 115 megawatts (MW), El Arrayan Wind is the largest wind power facility in Chile and all of South America. The transaction increases Pattern Energy’s ownership in El Arrayan Wind to 70% with Antofagasta Minerals SA owning the remaining 30% minority stake.
Bioenergy Bytes

UK Company Offering 100% Biodiesel Marine Motor

John Davis

A company in the United Kingdom is carrying a line of marine motors able to run on 100 percent biodiesel. Mermaid Marine says it has the Citius series of heavy duty engines from AGCO SISU Power, which is unique in being the only common rail engine available and is approved to run on pure biodiesel with no compromise in performance.

citiusmarineengine1“The importance of biodiesel is continuously increasing with biodiesel such as rapeseed accepted as an alternative fuel for use in engines,” explained Mermaid Marine sales executive Julian Osborne. “The fuel – either 100% biodiesel alone, or in any mixture ratio with diesel fuel according to EN 590 or ASTM D975, can be used in all the engines which are equipped with a mechanic or electronically controlled injection pump.”

AGCO SISU Power, formerly Sisu Diesel, was originally founded in 1942 and since then has produced engines known for their quality and reliability. The engines are built at the company’s main factory in Finland and comply with IMO 2 emission regulations and are future proofed for the forthcoming IMO 3 legislation.

Direct injection technology, crossflow cylinder head, centrally supported cylinder liners – unique in engines of this size – and advanced turbocharger technology have been everyday features in SisuDiesel engines for decades.

The engines have been designed for reliability, low operating costs and easy servicing. Classic, sturdy basic construction is combined with new generation control electronics and modern injection system, producing an engine that meets even the most demanding user needs.

You can get the engines in four and six cylinder versions from 130hp to 410hp. Mermaid Marine says they are designed for extreme conditions from blistering equatorial heat to the harsh winters of Northern Europe.

Biodiesel, International

Biodiesel Helps Fuel Monsanto’s Profits

John Davis

Monsanto_logoThe world’s biggest agriculture company says it will double its profits by the year 2019, and it’s crediting biodiesel, at least indirectly and in part, for that growth. This article in the Globe and Mail says Monsanto is cashing in on the growth in soybeans, which is being helped by biodiesel growth.

Sales in Monsanto’s soybean business rose by 24 per cent to $816-million in the third quarter, and corn revenue fell by 16 per cent. “I think corn had a good year, not a great year. [Soy]beans picked up a lot of the slack,” said [Monsanto chief executive officer Hugh] Grant, who is forecasting “the decade of the soybean.”

U.S. prices for soybean meal in the United States have risen by 48 per cent since the beginning of 2012, driven by rising production of biodiesel and growing demand from livestock producers. Soybean meal has become a popular and inexpensive source of protein for farm animals – especially pigs. Chinese hog producers, scrambling to meet rising demand for pork, have been among the biggest buyers of the U.S.-grown soy.

Farmers have responded to the new demand. Canadian growers expected to seed a record 5.3 million acres of soybeans this year, up more than 16 per cent over 2013, according Statistics Canada. In the United States, growers planned to seed a record 81.5 million acres this year, a 6-per-cent increase over last year, according to the U.S. Department of Agriculture.

Monsanto also announced a share buyback worth $10 billion and raised its short-term profit outlook for 2014, which helped boost its shares by 5 per cent this week.

Agribusiness, Biodiesel, Soybeans

Ethanol Boat Races Ride Into Garnett

Joanna Schroeder

Love to race? Love to boat? Then consider attending the Garnett Ethanol Hydroplane Shootout in Garnett, Kansas July 12-13, 2014. The competition, sponsored by the National Boat Racing Association (NBRA, pits drivers of hydroplanes and roundabouts against each other. The race is sponsored by the Renewable Fuels Association (RFA), East Kansas Agri-Energy, and the Kansas Corn Commission. Admission is free and earplugs or noise reducing devices are suggested.

rfa-nbra-3The NBRA, host of the event and representing more than 250 drivers in 30 states, has a long history of using E10. They broke speed records on the high-octane ethanol blend. According to Vernon Barfield, tech chairman and vice president of the NBRA, he has had no issues using E10 in their more than 20 years of racing. He has also won more than 35 national championships.

“The Garnett Ethanol Hydroplane Shootout is a popular, family-friendly event where people of all ages can enjoy high-stakes action while learning about the environmental benefits and high-octane power boost of ethanol-blended fuel,” said Robert White, RFA’s director of market development. “There is a lot of misinformation out there about ethanol’s impact on boats, but E10 is safe and approved for use in all marine engines. The Lake Garnett event gives us an opportunity to educate boat owners and non-boat owners, and set the record straight.”

Jeff Oestmann, president and CEO of East Kansas Agri-Energy, touted the race as a unique opportunity to highlight the benefits of ethanol. He noted, “It is exciting to see a national organization select Garnett for this event. It allows us to further promote the benefits of ethanol, not only in marine engines, but in all engines. We are proud to be a sponsor, and look forward to the races.”

E10 (10 percent ethanol, 90 percent gasoline) is approved for use in marine engines, including two-stroke powered engines, motorboats, outboard motors, and inboard motors. However, E15 (15 percent ethanol) is not approved for use in marine engines. Boat owners should always follow the Ethanol Fuel With Pridemanufacturer’s recommendations, check the owner’s manual before filling their engine with fuel, and read labeling at the pump.

Popular names in boating have embraced the use of ethanol. The NBRA uses E10 in all two-stroke motor races. Additionally, respected names in marine motor manufacturing allow ethanol blended fuel in their engines, including Honda, Kawasaki, Mercury Marine, OMC (Johnson/Evinrude), Pleasurecraft, Tigershark (Artco), Tracker and Yamaha.

Greg Krissek, head of the Kansas Corn Commission, added, “The Garnett Ethanol Hydroplane Shootout is a great opportunity to spotlight Kansas agriculture and ethanol. We are excited to sponsor this year’s race and hope everyone will join us to cheer on the competitors.”

RFA staff will be on hand to answer questions and provide education on ethanol use in marine engines. Additionally, RFA’s “Fueled with Pride” logo will be displayed on uniforms, course buoys and flags, t-shirts sold at the races by NBRA, trophies, near refueling areas of all boats, and on signs placed throughout the viewing area.

Ethanol, Ethanol News, Racing, RFA