Blue Earth Secures Solar PV Project in Hawaii

Joanna Schroeder

Blue Earth has acquired the rights to build a $2 million, ground mounted, 497 kilowatt solar PV project in Hawaii. The company has created a Special Purpose Entity, Waianae PV-2, for the project. The subsidiary will engineer, construct, own, operate and maintain the solar PV plant. Blue Earth has a power purchase agreement with Hawaiian Electric Company (HECO).

Hawaii has passed legislation, a Renewable Portfolio Standard, requiring 40 percent of the state’s energy be supplied by renewable energy by 2030. HECO has a Feed-in-Tariff (FIT) program designed to encourage more renewable energy projects throughout the state and will be “purchasing” renewable energy credits when the solar PV project goes online.

“This project is just one of several planned projects in Hawaii for us,” said D. Jason Davis, CEO of Xnergy, Inc. who merged with Blue Earth. “It represents our expansion into other markets and shows the kind of success we will enjoy by implementing our expansion plans into a key renewable energy market.”

The Waianae PV-2 ground mounted solar power system construction is expected to begin in the third quarter of 2012 and to be completed in the first quarter of 2013.

Electricity, Energy, Solar

Radio Ads Featuring President Obama Air in Iowa

Joanna Schroeder

Iowans driving to work, or typing away on computers, and listening to the radio, may hear some new advertisements featuring President Obama. Although the biodiesel and ethanol industries have been under serious attack the last few weeks, the Obama Administration has continued to show its support for the growth of the American-based industry. U.S. biofuels production is currently led by Iowa.

“When an industry is under attack, it’s admirable to see elected officials stand up for the ethanol and biodiesel producers that create American jobs, enhance America’s energy security, and improve our environment,” said Iowa Renewable Fuels Association (IRFA) President Brad Albin. “We commend President Barack Obama and his team for their continued public support for growing our renewable fuels industry, especially as it faces harsh criticisms. The 10,000 Iowa households employed by or invested in Iowa’s ethanol and biodiesel plants will take notice.”

For those of you living, or not living in Iowa and would like a list of the stations the ads are running, or to hear the ads, click here.

Audio, Biodiesel, biofuels, Ethanol, Iowa RFA

Sweetwater Energy Exceeds Funding Expectations

Joanna Schroeder

Sweetwater Energy has exceeded its goals for Series A funding raising $9 million, $4 million over its original goal. The New York-based company is developing a process to produce cellulosic sugar that can be used to produce biofuels, biochemicals and bioplastics. The company’s primary target is is refineries.

“As anyone trying to start a business today knows, the economic climate is very difficult for fundraising right now, but we received an incredible response,” says Keith Wilson, Sweetwater’s Chief Financial Officer. “This funding is already launching us into our next stage of development, which includes Sweetwater’s first commercial contracts and the design and fabrication of the first wave of facilities for 2013.”

The company raised $1.2 million in its first round on funding back in 2010 and also secured a grant from New York State Energy Research and Development Authority. In addition, Sweetwater generated some revenue from the sale of cellulosic sugar to the Department of Defense to test for jet fuel production. Today the company is leveraging its work in its pilot scale facility to build a commercial scale facility.

Chesonis concluded, “Ultimately, it’s the economic and cost drivers for lower-cost petroleum substitutes that are fueling the remarkable demand for Sweetwater’s technology. We’re excited to raise this capital and move into the next stage of growth; commercial contracts to fulfill that remarkable demand.”

advanced biofuels, biochemicals, bioplastics, Cellulosic

Ethanol Industry Responds to RFS Waiver Request

Cindy Zimmerman

Ethanol Report PodcastThe Renewable Fuels Association (RFA) expects the waiver requested by livestock and poultry groups of the Renewable Fuel Standard (RFS) will be denied by the Environmental Protection Agency, despite the impact one of the worst droughts in history is having on the nation’s corn crop.

In this edition of “The Ethanol Report,” RFA president and CEO Bob Dinneen explains how a waiver will not help livestock producers and why the RFS should remain, even though corn ethanol production is likely to drop below the requirement this year.

Listen to or download the Ethanol Report here: Ethanol Report on RFS Waiver Request

Subscribe to The Ethanol Report with this link.

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Government May Be Key to Solar Success

Joanna Schroeder

According to a new report by GBI Research, “Solar Thermal Power Market to 2020,” it will take worldwide government support to have a major impact on the renewable energy industry. Government attitudes to solar thermal power, or concentrated solar power (CSP), will be a key determinant to the future success of the market, which today, has a high cost of power generation while the technology achieves economies of scale.

The report comes to the conclusion that government provisions can push forward technological advances and boost installations. These moves will then lower the expense of the technology thus lowering the amount needed for project investments and power generation.

The U.S. and Spain are currently benefiting from Feed-In Tariffs (FIT), says the report. A FIT system offers a financial incentive to producers in various forms that can take the shape of premium tariffs, per kwH, over a fixed amount of time. In America, a regulatory framework among some states establishes mandates requiring utility companies to purchase alternatively generated electricity. In Spain, renewable energy investments are rewarded with tax rebates. Today, Spain and the U.S. hold the greatest share of the global CSP market.

The global CSP market is expected to grow by 2011 installed capacity of 1,546 MW to 47,462.9 MW in 2020, climbing at a Compound Annual Interest Rate (CAGR) of 44%.

Electricity, Energy, Solar

Food, Livestock Industries Blast RFS

Joanna Schroeder

The Wall Street Journal published an article, “The Ethanol Mandate is Worse Than the Drought,” in which Smithfield Food CEO Larry Pope blasted the Renewable Fuels Standard (RFS). This is another example of the orchestrated campaign against the RFS. In the article, ethanol production is blamed for the rising cost of food.

In response to the article, Brian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE) called the articles’s conclusion that the RFS is worse than the drought, “uniformed and irresponsible” and criticizes Pope for exploiting the ongoing natural disaster around the country. The U.S. is seeing the worst drought conditions is more than 50 years causing food prices to rise even before the crops are harvested.

“The U.S. Environmental Protection Agency has more than adequate flexibility to make adjustments to the RFS if there is a legitimate reason to do so. Iowa State Professor Bruce Babcock recently determined that a total waiver of the RFS would reduce corn prices less than 5% and cause less than a 5% reduction in ethanol production. While Larry Pope may hope that waiving the RFS might pad the profits of Smithfield Foods, it would have damaging consequences for our nation’s energy security and raise gasoline prices,” said Jennings. This is just one topic that will be addressed at ACE’s 25th Annual Ethanol Conference being held in Omaha, Nebraska August 8-10, 2012.

The fight continued this morning when the livestock and poultry producers held a press conference calling for a RFS waiver. Tom Buis, CEO of Growth Energy, noted that the current situation is a result of Mother Nature and not ethanol. To blame ethanol, he said, is “disingenuous and absurd. He also said we will not run out of corn, and the market will adjust to the current situation.

There has been a decrease in ethanol production; yet, there is still a billion gallon surplus of ethanol and another 3 billion RINs available. These two factors, said Buis, will allow obligated parties flexibility to meet ethanol mandates.

“If these groups desire is to pick and choose who gets first access to the available crop – as opposed to letting the market determine the best and highest use thru supply and demand, then they should look at all uses for corn, not just ethanol,” added Buis.

ACE, Agribusiness, Ethanol, Growth Energy

RFA Expects RFS Waiver to be Denied

Cindy Zimmerman

Responding to plans by livestock and poultry groups to seek a waiver of the Renewable Fuel Standard, the head of the Renewable Fuels Association (RFA) expects the request to be denied.

“Given the flexibilities inherent to the RFS, and the fact that waiving the program would not result in any meaningful impacts on corn prices, we fully expect Administrator Jackson to deny any waiver request,” said Bob Dinneen, RFA president and CEO. “A dispassionate review of the facts can lead to only one conclusion: a waiver of the RFS would simply reward oil companies that have long sought to repeal this very important and successful program. The RFS has reduced our dependence on imported oil and saved consumers at the pump.”

RFA“This summer’s hot, dry weather conditions have caused significant challenges for all users of grain,” Dinneen said. “We understand the hardships facing the agriculture industry this summer are serious. From extremely poor pasture conditions to heat stress on animals to reduced crop yield potential, this summer’s circumstances have been difficult. However, waiving the RFS won’t bring the type of relief the livestock groups are seeking, nor will it result in significantly lower feed prices. In fact, because ethanol plants also produce a high protein feed, limiting ethanol production will only further complicate drought related feed issues and costs.”

“The marketplace is the most efficient mechanism to ration demand, not the government, and that is already happening,” Dinneen continued. Dinneen pointed out that the ethanol industry has already begun to respond to sharply higher corn prices by significantly reducing production. The industry’s consumption of corn last week was the lowest in over two years and down nearly 14% in just the last six weeks.

Still, despite the downturn in production and continued demand rationing by the ethanol industry, obligated parties (petroleum refiners and blenders) should have no problem meeting the RFS. The ability of obligated parties to “bank” excess Renewable Identification Number (RIN) credits and use them for compliance in the following year provides a significant measure of flexibility that takes pressure off of the corn market in the event of a short crop. It is estimated that some 2.4 to 2.6 billion excess renewable fuel RIN credits are currently available to obligated parties, equivalent to nearly 20 percent of this year’s RFS renewable fuel requirement.

Ethanol, Ethanol News, livestock, livestock feed, RFA

Livestock and Poultry Groups Seek RFS Waiver

Cindy Zimmerman

Livestock and poultry producers are filing a petition with the Environmental Protection Agency (EPA) seeking a waiver from the Renewable Fuel Standard (RFS) in light of the current drought situation likely to cause feed shortages.

“I and NCBA support American ethanol,” said National Cattlemen’s Beef Association president J.D. Alexander of Nebraska. “I’m not asking for a handout. I’m asking for the federal government to let the market work.”

“Relief from the Renewable Fuel Standard is extremely urgent,” said Past National Chicken Council chairman Michael Welch, President & CEO of Harrison Poultry in Bethlehem, Georgia.

Alexander and Welch were joined at a morning press conference by Randy Spronk of Minnesota, National Pork Producers Council president-elect and John Burkel, Minnesota turkey grower and National Turkey Federation vice chairman.

Listen to opening comments at a press conference this morning from the four organization leaders here: Livestock and Poultry groups

Under questioning by reporters, the groups were pressed about their legal capability of being able to even request the waiver, since the Clean Air Act states that a waiver can only be filed by an EPA administration, obligated party, or a governor – as was the case with Rick Perry of Texas in 2008. Michael Formica, NPPC Chief Environmental Counsel, clarified. “We petitioning her (EPA Administrator Lisa Jackson) to use her authority to waive the rule,” he said.

Listen to questions and answers from the press conference here: Livestock and Poultry Q&A

National Corn Growers Association (NCGA) President Garry Niemeyer of Illinois says they believe it is premature to ask for a waiver of the RFS right now, but better than asking for a change in the law. “With the crop still in the field, it is too early to determine this year’s final corn supply. In addition, the ethanol industry now has a significant surplus of ethanol and RFS credits that can greatly offset ethanol’s impact on the corn supply,” he said. “However, we recognize the severe impact of the drought on our farmers and our customers, here and abroad, with livestock, poultry, ethanol and other processing facilities, and we believe the flexibility of the RFS does work, and will work. NCGA also supports the waiver process that is embodied in the current RFS, and respects the right of those that may file a waiver petition to do so.”

corn, Ethanol, Ethanol News, livestock feed, NCGA

Payments Made to Renewable Feedstocks Producers

Joanna Schroeder

Nearly $19.4 million in payments to 125 advanced biofuel producers growing non-food feedstocks for use in development for biofuels has been made by the UDSA. The funding is provided through USDA’s Bioenergy Program for Advanced Biofuels that was established in the 2008 Farm Bill. The goal of the program is to support the research, investment and infrastructure needed to build a diverse American-based biofuels industry.

“Advanced biofuels are a key component of President Obama’s ‘all-of-the-above’ energy strategy to reduce the Nation’s reliance on foreign oil and take control of America’s energy future,” said Agriculture Secretary Tom Vilsack. “These payments represent help to spur an alternative fuels industry using renewable feedstocks grown in America, broadening the range of feedstock options available to biofuels producers, helping to create an economy built to last.”

Dozens of different feedstocks can qualify for the program but no corn-based feedstocks are allowed. For example, crop residue, animal, food and yard waste material, vegetable oil, and animal fat are some of the feedstocks that producers are cultivating and biofuels producers are developing.

Representatives of the USDA say that increased biofuel production only plays a minor role in retail food price changes. Feedstock diversity leads to market flexibility and relieves market pressure.

Click here for a list of the advanced feedstock producers that received payments.

advanced biofuels, Agribusiness, feedstocks

Obama Officials Voice Support for RFS

Joanna Schroeder

The Obama administration has vocalized its continued support for the Renewable Fuels Standard (RFS) by rebuffing “alarmist calls” for its end. Last week, Renewable Fuels President (RFA) and CEO Bob Dinneen wrote a letter to U.S. Agriculture Secretary Tom Vilsack and Environmental Protection Agency (EPA) Administrator Lisa Jackson thanking them for acting responsibly in the wake of calls to modify or dismantle the RFS. Dinneen has been on record multiple times saying changes to the RFS are “simply not warranted.”

Dinneen wrote, “Your comments have provided the kind of certainty and security that is necessary to ensure the renewable fuels industry continues to evolve. Further, your agencies’ recent remarks regarding the RFS serve as important signals to the investment community that the nation’s commitment to diversifying our fuel supply and creating a future market for new advanced biofuel technologies remains intact,” Dinneen wrote.

Opposers of RFS have gained some momentum of late using the record breaking drought conditions as an example of why the RFS will not work. However, Dinneen says the RFS has “tremendous flexibility built into the RFS program” by way of Renewable Identification Numbers (RINs) that allow obligated parties to “bank” credits.

According to research released last week by Iowa State University professor Bruce Babcock, there are an estimated 2.4-2.6 billion RINS available and a reduction in the RFS might only serve to lower corn prices by 4.6 percent. In addition when corn prices began to rise, says Dinneen, ethanol consumption of corn fell nearly 14 percent, a two-year low, while exports increased nearly 15 percent.

Dinneen concludes that waiving RFS mandates will not serve its intended purpose and market signals along with the flexibility of the RFS are working.

biofuels, Ethanol, RFA