RFA Announces New Board Members

Joanna Schroeder

The Renewable Fuels Association (RFA) held its annual meeting in Omaha, Nebraska this week and during the event, members elected new Officers of the Board of Directors. The new Chairman of the RFA Board of Directors is Neill McKinstray, President of the Ethanol Division, The Andersons, Inc. as Chairman of the RFA Board of Directors. McKinstray previously served as the Vice Chairman for two terms, and will be succeeding Chuck Woodside, General Manager of farmer-owned KAAPA Ethanol. Woodside served as Chairman for two terms.

“Today, ethanol is presenting the U.S. with a critical opportunity to expand domestic energy production and reduce foreign oil imports by millions of barrels. The future of energy independence and a stronger America is being realized right here, right now, every day, in ethanol plants across the country,” said McKinstray. “It is important that the industry continues to drive forward, ensuring that we maintain critical policies like the Renewable Fuel Standard (RFS), extend key tax policies for new fuel commercialization and investment in renewable fuel infrastructure so that we can continue to provide American consumers with more clean fuel options.”

McKinstray complemented RFA and its members for their work in ensuring growth and evolution of the ethanol industry. He also noted that the future holds great promise for the ethanol, and concluded by saying he was honored to be elected and looks forward to the challenges and opportunities that lie ahead.”

Other elected RFS officers include:

• Vice Chairman Randall J. Doyal, CEO of Al-Corn Clean Fuel in Claremont, Minnesota
• Treasurer Walter Wendland, CEO of Golden Grain Energy in Mason City, Iowa
• Secretary Mick Henderson, General Manager of Commonwealth Agri-Energy in Hopkinsville, Kentucky
• President Bob Dinneen, CEO of Renewable Fuels Association, Washington, DC

biofuels, Company Announcement, Ethanol, RFA

EU Surpasses 100 Gigawatts of Wind Power

Joanna Schroeder

Wind power in the European Union (EU) has surpassed 100 gigawatts according to the European Wind Energy Association (EWEA). This is enough electricity generated per year to meet the total needs of 57 million households. The installation of wind power is accelerating: it took 20 years to install the first 10 gigawatts; 13 years to add another 90 gigawatts.

“It would require burning 72 million tonnes of coal annually in coal fired power plants to match Europe’s annual wind energy production,” said Christian Kjaer, CEO of EWEA. “Loading that amount of coal on trains would require 750,000 wagons with a combined length of 11,500 kilometres – the distance from Brussels to Buenos Aires, Argentina.”

Kjaer continued, “Despite only utilising a tiny fraction of Europe’s vast domestic wind energy resources, wind power is having a substantial impact on Europe’s energy security and environment, and benefits us hugely in creating green jobs and technology exports.”

Recent wind turbine installations contributing to the 100 GW milestone include:

  • Anholt offshore wind farm, 400 MW developed by DONG off the coast of Denmark;
  • Linowo, 48 MW developed by EDF Energies Nouvelles Polska in Poland;
  • Ausumgaard, 12 MW developed by a private landowner in Denmark (west Jutland); and
  • Akoumia, 7.2 MW developed by Greek power company PPCR on the island of Crete.

A few other stats: 100 gigawatts of wind power can produce the same amount of electricity over a year as 62 coal power plants, 39 nuclear power plants or 52 gas power plants. To produce the same amount of electricity it would requiring the mining, transporting and burning of 72 million tonnes of coal, at a cost of € 4,983 million, and emit 219.5 Mt of CO2, or would requiring extracting, transporting and burning 42.4 million cubic meters of gas, at a cost of € 7,537 million, and emit 97.8 Mt of CO2.

Electricity, Energy, International, Wind

Industry Launches “Fuels America” Campaign

Cindy Zimmerman

In the face of increasing calls to waive the nation’s Renewable Fuel Standard, biofuel industry stakeholders today announced a major new communications campaign to educate consumers and policy makers about the benefits of renewable fuel to America’s economy, energy security and environment.

The new coalition – Fuels America – includes renewable fuel, national security, renewable energy and other stakeholders. Among those who are part of the coalition are Growth Energy, the Renewable Fuels Association (RFA), American Coalition for Ethanol (ACE), National Corn Growers Association (NCGA) Biotechnology Industry Organization (BIO) and the Advanced Ethanol Council (AEC). A number of biofuel companies are also members, such as Abengoa, DuPont, POET and Novozymes.

The Fuels America campaign will be a national effort, including advertising, beginning in Washington, DC and several states, including Colorado, Ohio, Delaware and Montana. Each state will have its own online platform reachable through FuelsAmerica.org and feature the stories of renewable fuel innovators and communities with a stake in maintaining the RFS. The coalition also has a Twitter feed @FuelsAmerica.

A telephone press conference was held this morning to announce the new coalition and campaign with BIO president and CEO Jim Greenwood, Novozymes president Adam Monroe, Marion (Ohio) Chamber of Commerce president Pam Hall, and ZeaChem president and CEO Jim Imbler.

Listen to or download that press conference, which starts with comments from Jim Greenwood: Fuels America press conference

Press conference Q and A: Fuels America press conference Q&A

ACE, advanced biofuels, AEC, Compressed Natural Gas (CNG), corn, Ethanol, Ethanol News, Growth Energy, NCGA, sorghum

Gevo To Refine Biobutanol Plant

Joanna Schroeder

In May of 2012, Gevo, Inc. announced the start-up of its bio-isobutanol plant in Luverne, Minnesota. Since then, the company says it has both produced and shipped commercial quality product in railcars for customers. One thing the company has learned is what works well and what needs to be tweaked. So the company has switched the plant to ethanol production while it refines its bio-isobutanol technology.

“To date, we have proven we can produce bio-isobutanol, and do it on a commercial scale – years ahead of the competition,” said CEO Patrick Gruber, Ph.D. “This start-up is very typical of other start-ups we have done: you have to learn a lot in a very short period of time, both what works well and what needs to be adjusted. Early indications are that, while we are making significant progress towards economic production levels, we will not achieve our desired year-end run rate – instead we would expect to achieve that during 2013.”

“While we have made significant progress towards economic production levels, we have decided to optimize certain specific parts of our technology to further enhance bio-isobutanol production rates,” continued Gruber. He said that it does not make business sense to implement adjustments while having the plant in productions. So their strategy is to switch to ethanol production while the technology is refined.

Gevo has agreements in place with Sasol, Total, VP Racing Fuels, Mansfield Oil, and Land O’Lakes Purina. While the company is currently producing fuel for the transportation market, the company is also developing opportunities in the jet, marine and small engine markets as well as looking at the production of bio-isobutanol for biochemicals and biomaterials.

“In five short years, we have gone from start-up to commercial-scale production at the world’s first commercial bio-isobutanol production facility. Production start-ups are never easy, but we are years ahead of our competition and well on our way to realizing economic production levels during 2013,” Gruber concluded.

biobutanol, biochemicals, biofuels, biomaterials

Industries Account for 30% of Energy Use in US

Joanna Schroeder

According to the Energy Information Administration’s (EIA) Energy Manufacturing Consumption Survey, the industrial sector used more than 30% of the total energy consumed in the U.S. in 2011. Why should you care? Because this sector includes biorefineries, manufacturing facilities that produce parts for wind turbines and solar panels and segments of the agricultural sector as well.  It also includes much of what you see in a supermarket – from the food to the packaging to the shelving and cold cases to the raw materials mined and refined to produce and transport the products.

The survey, along with the most recent Annual Energy Outlook 2012 report, show that the recent economic recession strongly affected the industrial sector. It has definitely affected the entire alternative energy industry. A key initiative of biorefineries in particular has been improving energy efficiency while reducing energy consumption.

Energy, energy efficiency

Butamax Patent Portfolio Expands

Joanna Schroeder

Butamax Advanced Biofuels has been granted another patent 8,273,558 (‘558 patent). The company is focused on developing commercial technology for the production of biobutanol, with a focus on the fuel market. One aspect the company has been working on is capitalizing on sugar conversion via the enzymes paired with yeast.

Yeast only expresses certain enzymes in small compartments of a cell and thus limits the availability of these enzymes to convert sugar to biobutanol in high rates and significant quantity. The company developed modified genes that express key enzymes in the larger area of the cells, and this is the technology covered under 558 patent. The modified genes increase the volume and rate of isobutanol produced. The 558 patent also protects blending the isobutanol produced through the modified yeast cells with fossil fuels.

Butamax is working on refining its technology in several research facilities across the world including Hull, England. During the 2012 Olympics, the facility provided biobutanol to BP for its use in fueling portions of the Olympic fleet.

biobutanol, biofuels

States Battle Over ‘Food Before Fuel’

Joanna Schroeder

According to an analysis by the Biotechnology Industry Organization (BIO), “food before fuel” is a fight between states. After reviewing eight waiver requests from governors submitted to the U.S. Environmental Protection Agency (EPA), a common argument was farmers in other states have to provide their states’ livestock industries corn. The waivers request a halt, or lowering, of the amount of ethanol that should be blended into fuel as mandated by the Renewable Fuel Standard (RFS). The current drought that has impacted the majority of the U.S. is causing heated discussions about who should get the corn.

It wasn’t until recent years that farmers in the U.S. could grow corn at a profit. Instead, most had to rely on federal payments or subsidies. Interestingly, while corn farmers in the Midwest created a new and growing market with ethanol and its by-products, those in Southern states where the waivers were primarily filed, lagged behind the U.S. average in achieving profitability. The core reason: growers were focused on only one market, the livestock industry.

It should be stressed that the corn used for livestock feed and ethanol is NOT the corn used in your corn tortilla. That said, yes, humans are indirectly eating the corn when eating meat (unless the animal was grass fed). But what many don’t understand or choose not to acknowledge, is that one by-product of ethanol production is a high protein based distillers grain, or high-protein animal feed. So you are not losing the entirety of the corn bushel to produce ethanol – that same bushel is also producing feed. In otherwords, a bushel of corn produces food AND feed AND fiber.

The analysis points out, rightly so, that what the growers in the Southeastern states should be looking for ways to increase their profitability. “Additional markets for corn – such as conventional biofuel production – could add value to corn grown in Southern Seaboard states.”

The wonderful thing about market dynamics, and the way the RFS was written, is that they are working. The marketplace is sorting out the difference between supply and demand and to intervene would only create a more negative impact than the drought has already.

Click here to read BIO’s RFA Waiver Analysis.

Agribusiness, BIO, biofuels, corn, Ethanol, food and fuel, Opinion, RFS

Fuel Your Natural Gas Vehicle at Home

Joanna Schroeder

The Gas Technology Institute (GTI) is partnering with the Center for Electromechanics at the University of Texas at Austin (UT-CEM) to engineer ways to fuel natural gas vehicles at home. GTI has been focused on making natural gas vehicles more competitive in the marketplace, and last week I brought you the story about how their FuelMule fueled up natural gas buses during both the republican and democratic conventions.

There are two major barriers to widespread adoption of natural gas vehicles. One is infrastructure and two is cost. With a $4 million grant to develop a cost-effective compressor for at-home natural gas refueling systems, these two issues could become a part of the past. The U.S. Department of Energy (DOE), through its Advanced Research Projects Agency-Energy (ARPA-E), is funding this cutting-edge project. It is part of DOE’s new program, titled Methane Opportunities for Vehicular Energy (MOVE).

The team will develop a compressor that will use fewer moving parts. The goal is to replace current technology, which comprises multiple pistons and cylinders, with a single cylinder and piston moving through a linear motor. This easier to use system will also be a safer fueling technology. Current technology costs around $4,000 but this new system would cost less than $2,000.

Researchers will also work with Argonne National Laboratory to identify and apply a cost-effective surface coating for the inside wall of the cylinder. “With their help, we look to identify a coating system that will extend the longevity of our one moving part—the component most susceptible to wear and maintenance,” said Tony Lindsay, GTI RD&D Director, who will oversee the project.

Natural Gas

Fuel Prices Are Impacting Farms and Businesses

Melissa Sandfort

Our latest ZimmPoll asked the question, “Have high fuel prices had an impact on your farm/business?”

Our poll results: Sixty-four percent said Yes, big impact on our budget; fourteen percent said Yes, minimal impact on our budget; twelve percent said No, not yet; and ten percent said No, don’t expect any.

Our new ZimmPoll is now live and asks the question, “What grade would you give the new student lunch program? Tell us why with a comment.” New government nutrition standards, which went into effect this year in a bid to combat childhood obesity, require schools to serve more variety and larger portions of fruits and vegetables. What do you think – are these new lunches a good thing or will students just toss more food in the trash can?

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

USDA, ZimmPoll

Free Biodiesel Producer Conference Call

Joanna Schroeder

Lee Enterprises Consulting is hosting a free conference call for those in the biodiesel industry on Tuesday, October 2, 2012 beginning at 2:00 pm CDT. There are several key topcis and speakers featured during the call.

1. “Recent OSHA Developments in Safety and Process Safety Management for Biodiesel Plants,” presented by Nathan Vander Griend with ERI Solutions. OSHA is currently conducting focused inspections under the chemical facility National Emphasis Program (NEP) to verify compliance with the PSM standard (29 CFR 1910.119) at covered facilities that include biodiesel and ethanol biorefineries. Inspections are underway and Vander Griend will counsel producers on PSM requirements and compliance.

2. “Selling Your Biodiesel with RINS: Promoting RIN Integrity,” presented by Susan Olson, Genscape’s RIN Integrity Network. With the volume of biomass-based diesel set at 1.28 billion gallons for 2013 under the Renewable Fuel Standard (RFS), producers need to under what obligated parties need to know to ensure security when buying biodiesel and the associated RINs. Key measures to improve the integrity, transparency and liquidity of the biodiesel and RINs markets will be discussed along with a roadmap to RIN integrity and a pathway to a more efficient biodiesel market will be presented.

3. “The Effect of the New Health Care Legislation on Biodiesel Plants with Employees,” presented by Jim Schmidt, Eide Bailly, CPAs & Business Advisors. With the Patient Protection and Affordable Care Act in effect, individuals will be required to have health insurance as of January 1, 2014. The Act provides certain incentives and penalties to individuals and businesses related to obtaining or providing health insurance. This session will provide a high level overview of the Act, and how you can obtain information that will allow you to make decisions that are beneficial and cost effective for your business and your employees.

Click here to learn more about the conference call and to register. The event is free but space is limited.

advanced biofuels, Biodiesel, Education