Wind O&M Market Forecast to Double

Joanna Schroeder

The wind operations and maintenance services (O&M) market is forecast to nearly double by 2025 from approximately $3 billion in 2012 to nearly $6 billion in 2025. Also according to a recent report from IHS Emerging Energy Research on U.S. Wind O&M Strategies, O&M is expected to account for over one-third of total capital expenditures over the next decade.

In March, the U.S. Senate voted against extending the wind Production Tax Credit (PTC) beyond 2012. This has caused uncertainty in the market and prospects for new wind farms are uncertain. This also has an impact on operational wind farms and owners are now putting more focus on increasing revenue.

The study focuses on four O&M areas: market player profiles; market environment; service segmentation and costs analysis; and market forecasts.

These areas, along with other key issues in the wind industry, will be addressed during the 4th Annual Optimizing Wind Power O&M conference slated for September 25-26, 2012 in Chicago. The event has been updated based on attendee feedback and this year there will be case studies and interactive roundtable discussions.

Electricity, Energy, Wind

Consumers in Kansas Embrace E15

Joanna Schroeder

Consumers in Kansas have embraced E15. The Zarco 66 “Oasis” station in Lawrence became the first retail gas station in the country to offer E15 under the waiver granted by the U.S. Environmental Protection Agency (EPA), and consumers are buying the renewable fuel blend.

On July 18, 2012, Zarco 66 Station owner Scott Zaremba held a pump promotion for two hours where E15 was sold for $1.15 per gallon. During the promotion, 3,000 gallons of E15 were sold. The ethanol blend can be used in vehicles and light duty trucks beginning with the manufacturer year of 2001. In the U.S., nearly 60 percent of the cars and trucks on the road can use E15.

Bob Dinneen, President and CEO of RFA noted that E15 represents a new choice at the pump introducing additional competition in the fuel market. “As a result of increased ethanol use, drivers are paying less at the pump, rural America is seeing better economic opportunities, and the nation is weakening its dependence on imported oil.”

Given current market conditions, E15 will sell less than E10 and gasoline not containing ethanol. The Zarco 66 “Oasis” is selling E15 for two cents less than E10.

Dinneen added, “Anti-biofuel critics can scream until they are blue in the face, but as the drivers in Lawrence are learning, E15 is safe and viable fuel choice.

blends, Ethanol, Ethanol News, RFA

Ethanol Detractors Call for End of RFS

Joanna Schroeder

A coalition of livestock and poultry groups continue to attack the veracity of the Renewable Fuels Standard (RFS) that mandates the amount of renewable fuels that must be used each year in the transportation fuel supply. The new campaign has been launched in tandem with a new economic study conducted by Farm Econ LLC focusing on the impact of corn ethanol production on food prices as well as the commodity price volatility.

Ironically, the study was released at the same time that the U.S. Department of Agriculture (UDSA) released a new corn harvest report estimating that at least 75 percent of the corn crop is growing in drought conditions.

“While the groups paying for this study feel entitled to cheap corn forever and are shamelessly exploiting the drought as an excuse to roll back the RFS, there is no credible evidence to justify reducing or waiving it,” said Brian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE).

“The fact is the RFS is helping reduce dependence on foreign oil, moderating gas prices, and securing jobs in rural America. Both USDA Secretary Vilsack and U.S. Senator Stabenow, chair of the Senate Agriculture Committee have indicated the drought is not an excuse to waive or repeal the RFS,” added Jennings.

USDA Secretary Tom Vilsack said in a press conference earlier this week that what really drives food prices are energy costs. He also stressed the importance of ethanol production and the need to continue to focus on the “all of the above” approach to producing more energy.

Tom Buis, CEO of Growth Energy noted that ethanol detractors are “conveniently ignoring that in 2011 ethanol used only 3 percent of the global grain supply.” He added, “…the cost of energy plays a substantial role in food prices. Factors related to energy, and in particular, oil prices, such as the transportation, storage, processing and packaging of goods are the true culprits of rising food costs. Additionally, marketing expenses add to the rising costs of food. For every dollar spent at the grocery store, $.84 cents can be attributed to marketing, with a mere $.03 cents representing the corn value.

Despite the lobbying against the RFS, ethanol industry supporters maintain that they can both feed the world and fuel America.

ACE, biofuels, Ethanol, Growth Energy

Researchers: LCFS Would Help America

Joanna Schroeder

During a bipartisan briefing on Capitol Hill, researchers from six institutions advocated that adopting a national Low Carbon Fuel Standard (LCFS) would be a positive step for America. Renewable fuels, they said, will be cleaner, cheaper and “Made in America”. This consensus by the group of researchers was met after conducting an extensive series of peer-reviewed LCFS studies. The research will be published in The Energy Policy Journal’s special issue on Low Carbon Fuel Policy over the next several months.

“A national Low Carbon Fuel Standard is a promising framework to help solve the transportation energy challenges that have eluded us for several decades,” said Dr. Daniel Sperling, director of the Institute of Transportation Studies at the University of California, Davis, one of the participating institutions of the National Low Carbon Fuel Standard Project. “Technologically, an LCFS is very doable. And it can help us address the complex choices with conventional oil, shale gas, oil sands, biofuels, and electric vehicles.”

The way that a LCFS would work is through setting a common target for carbon intensity, which would reduce the amount of carbon in transportation fuels. Energy companies would have to meet the carbon intensity level but could individually decide how to meet that goal. Companies could explore such things as biofuels or hydrogen fuels. In addition, companies could buy and sell carbon credits from companies producing low-carbon fuels.

Dr. Jonathan Rubin, professor of Economics at the University of Maine said, “An LCFS encourages innovation and diversity by harnessing market forces. “These reports provide practical policy recommendations, and are designed to inject scientific information into the national conversation on a Low Carbon Fuel Standard.”

Yet not everyone agrees that an LCFS would be a positive move for the country. The Consumer Energy Alliance (CEA) has publicly come out against any national LCFS policies citing other studies that found such a move would cost millions of Americans to lose jobs, double gasoline prices and raise greenhouse gas emissions.Read More

biofuels, Environment, Hydrogen, Opinion

Biofuels Play Major Role in Great Green Fleet Exercise

John Davis

Biofuels are playing a significant role in the biggest maritime exercise in the world. About 450,000 gallons of biofuels made from non-food stocks have been used to fuel the ships and aircraft, known as the “Great Green Fleet,” taking part in the U.S. Navy’s and allied nation’s Rim of the Pacific Exercise (RIMPAC).

“Yesterday, off the coast of Hawaii, was a great day for the Navy and a great day for America. It marked some serious steps to take us on the road toward energy security and energy independence,” says Secretary of the Navy Ray Mabus. He notes advanced biofuels were seamlessly integrated into the operations, which included typical fighter jet flying and refuelings and ship-to-ship underway refuelings. “Absolutely no modifications were required or made to any of the engines that were burning biofuels.”

Secretary of Agriculture Tom Vilsack echoes those sentiments in this demonstration of U.S. military might and leadership. “It’s not just leadership to make us more secure from a national security or energy security standpoint. It’s also leadership for economic opportunities in rural areas.” Vilsack adds this use of American-made biofuels plays right into the bio-based economy, providing 400,000 jobs in the U.S., expected to go even higher when the full Renewable Fuels Standard is met.

Deputy Assistant to the President for Energy and Climate Change Heather Zichal adds that this use of biofuels demonstrates to the world that the U.S. Navy is leading the way. “[The Navy] is sending a clear message that we cannot keep doing what we have done in the past. We cannot be timid about embracing new forms of energy, like biofuels, that have the potential to strengthen our energy security and reduce the military’s dependence on oil.”

Listen to the full press conference here: Press Conference on use of biofuels during RIMPAC

Audio, biofuels, biojet fuel, Government, USDA

Battle Over RFS Heats Up With Drought

Cindy Zimmerman

With 78 percent of the corn crop suffering from drought, livestock and poultry groups are renewing calls for changing the ethanol requirements in the Renewable Fuel Standard (RFS2).

During a press conference today sponsored by livestock and poultry interests, Cong. Bob Goodlatte (R-VA) said he has introduced two bills – one to eliminate the RFS and one to reform it. “Additionally, I strongly believe that given the drought conditions gripping our nation, the administrator of the EPA should reduce the RFS mandate for this year and do it now,” he said.

Listen to Goodlatte’s comments here: Cong. Goodlatte on RFS

Supporters of the RFS point to ethanol stocks and the Renewable Identification Numbers (RINs) system built into the law for just such a natural disaster. “Strong supplies of ethanol in storage, an oversupply of 2.5 billion Renewable Identification Numbers (RINs), and a smaller gasoline market that reduces the actual 2012 RFS requirement to just approximately 13.04 billion gallons are all indicators that the RFS will work in 2012 and 2013,” said Matt Hartwig with the Renewable Fuels Association. “To be certain, conditions facing American farmers are challenging. However, the market will act to ration corn demand and the RIN mechanism of the RFS will provide a cushion for refiners and other obligated parties to comply with RFS requirements.”

“When it comes to the Renewable Fuel Standard for ethanol and other biofuels, now is not the time for changes. It’s working. The RFS is revitalizing rural America, reducing our dependence on foreign fuel and reducing the cost of gasoline. Making changes to the RFS now would only ensure that consumers suffer due to significantly higher fuel prices,” said National Corn Growers Association president Garry Niemeyer. “Given the challenges of the drought and suffering of all farmers, now more than ever, U.S. agriculture needs to pull together. NCGA will continue to help lead the way in trying to unite, rather than divide, American agriculture.”

Audio, Ethanol, Ethanol News, Government, NCGA, RFA

RFA Continues Sturgis Sponsorship

Joanna Schroeder

The 72nd Annual Sturgis Motorcycle Rally in Sturgis, SD is August 6-12 and the Renewable Fuels Association (RFA) is continuing its partnership with the Legendary Buffalo Chip. This is an opportunity for the organization to promote the use of ethanol to motorcyclists around the country. Often ethanol is mischaracterized as a problem for motorcycle engines.

During the event, RFA staff and volunteers wearing “Ethanol: Fueled with Pride” t-shirts will hand out educational and promotional materials. A promotional trailer will be located inside the Legendary Buffalo Chip amphitheater where nearly 100,000 people attend concerts each night.

For the first time this year attendees will have the opportunity to fuel their bikes for free during two events. The “Free Fuel Happy Hours” are sponsored by RFA, Kansas Corn Commission and the South Dakota Corn Growers. Motorcyclists will be able to fill their tank, free of charge, if they have a Buffalo Chip wrist band. The Free Fuel Happy Hours will be on Wednesday, August 8th and Thursday, August 9th next to The Crossroads at the Buffalo Chip from 4 pm – 6 pm CDT.

“The Chip is excited to once again partner with RFA to highlight the benefits of using ethanol fuel,” said Rod Woodruff, Owner of the Legendary Buffalo Chip. “The Buffalo Chip leads by example; every drop of unleaded fuel we use here contains ethanol. With events like the ‘Free Fuel Happy Hour’ and Fueled with Pride give-away items, thousands of attendees who travel cross country to be at Sturgis will leave knowing that ethanol is a safe option for their motorcycles and they have a choice in the fuel they put in their engines.”

There will be more events to attend as part of the promotion. To learn more visit ChooseEthanol.com.

biofuels, Ethanol, RFA

Ag Secretary Says RFS Okay with Ethanol Stocks

Cindy Zimmerman

Agriculture Secretary Tom Vilsack held a sobering press briefing Wednesday after meeting with President Obama about the impact of the nation’s drought on agricultural production.

Vilsack says the drought is “most serious situation we’ve had in 25 years” with 61% of the land mass of the United States is currently characterized as being impacted. About one third of the counties in the United States are now designated as secretarial disaster areas and that is expected to grow higher. “This obviously will have an impact on the yields,” he said.

When asked if the drought impact on corn should prompt action by the Environmental Protection Agency to roll back the use of corn for ethanol under the Renewable Fuel Standard, Vilsack said, “There is no need to go to the EPA at this time based on the quantity of ethanol that is in storage.”

The latest Energy Information Administration data from last week showed another drop in ethanol production from the previous week bringing the average weekly rate down to 841,000 barrels per day for an annualized rate of 12.89 billion gallons. Stocks of ethanol now stand at 19.6 million barrels or about 824 million gallons.

corn, Ethanol, Ethanol News, Government, USDA

Using Bacteria for Good

Joanna Schroeder

Researchers at Michigan State University (MSU) are using the power of microbes from agricultural waste to create ethanol and hydrogen for fuel cells. The technology was developed by MSU microbiologist Gemma Reguera, who created bioelectrochemical systems known as microbial electrolysis cells or MECs. The process uses bacteria to break down and ferment ag waste into ethanol. The process produces 20 times more energy than existing methods.

According to communication from MSU, the process is unique because it uses a second bacterium. When added to the mix, it removes all waste fermentation byproducts or nonethanol materials, while generating electricity. The results of the research were recently published by Reguera along with co-author and graduate student Allison Spears, in Environmental Science and Technology. 

The research is important because in lab tests have significantly improved energy recovery from corn stover, a budding feedstock for biofuel production, that today hovers around 3.5 percent. However, Reguera’s process averages 35-40 percent energy recovery after factoring in the energy required during the pretreatment phase. What might be even more promising about the platform is that the significant energy recovery is just from the fermentation process.

“This is because the fermentative bacterium was carefully selected to degrade and ferment agricultural wastes into ethanol efficiently and to produce byproducts that could be metabolized by the electricity-producing bacterium,” explained Reguera. Read More

biofuels, Electricity, Ethanol, Hydrogen

Offshore Wind Energy in Europe Doubles

Joanna Schroeder

Yesterday I wrote about the progress of an offshore wind project in the UK, the Blyth Offshore Wind Demonstration project. Today The European Wind Energy Association (EWEA) has said that 2012 could be the best year ever for offshore wind energy in Europe. Just this year 532.2 megawatts (MW) or 132 offshore wind turbines have been connected to the grid in since January. This is a 50 percent increase compared to the first six months in 2011 when only 348.1 MW were installed.

Christian Kjaer, CEO of EWEA noted that this feat was achieved despite global economic and financial turmoil. “Offshore wind power creates jobs in Europe, reduces our fuel import costs, and avoids the global and local health and environmental costs of extracting, transporting and burning fossil fuels. Offshore wind power is increasingly attracting investors, including pension funds and other institutional and corporate investors, but it would be good to see more activity in southern Europe where jobs, investments and growth are desperately needed.”

In addition to what is currently operational, there are another 160 turbines, representing 647.4 MW of energy built and waiting to be connected to the grid. Factors affecting the speed of connection include weather conditions at sea and grid connection delays. Moving forward there are 13 offshore wind farms under construction and when completed will add another 3,762 MW of capacity.

To date, there is a total of 4,336 MW offshore wind capacity up from 3,294 MW in June 2011. This is enough electricity to energize 4 million average sized homes.

Electricity, Energy, Wind