State Tax Credit Helps Iowa Biodiesel Production

Biodiesel production in Iowa has remained strong during the first quarter of 2012 despite the expiration of the federal biodiesel tax credit. According to figures released by the Iowa Department of Revenue (DOR), 10 Iowa biodiesel plants produced 41.9 million gallons from January through March.Iowa RFA

In 2011, the Iowa Legislature enacted a short-term, modest biodiesel production tax credit to help Iowa’s biodiesel community compete against states that provide large biodiesel incentives. The Iowa program went into effect on January 1, 2012 – the same day the federal biodiesel program expired.

“Despite losing the federal tax credit, biodiesel production in Iowa remains on pace with 2011 production, although down from year-end levels,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “This is a clear sign that Iowa’s new biodiesel production tax credit is having a positive impact. With additional production set to come on line in Iowa, we hope to see these numbers increase throughout the year.

“We knew there would be a transition period in 2012 and it was important to give the 7,000-plus jobs tied to Iowa biodiesel production a chance to survive and thrive,” added Shaw. “The initial DOR biodiesel numbers are a sign Iowa is headed in the right direction. Tax credits are only earned if biodiesel is produced –meaning jobs are sustained and the economy is strengthened.”

A study released earlier this year by economist John Urbanchuk, technical director of Cardno ENTRIX, found that biodiesel production supported 7,350 Iowa jobs; boosted Iowa GDP by nearly $600 million and generated $350 million in additional Iowa household income.

For more details, read the complete study.
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Biodiesel, Iowa RFA, Production

Ethanol Plant Begins Operations in Mozambique

Joanna Schroeder

An integrated food, energy and forest business, CleanStar Mozambique, has gone online. Located in Dondo, the ethanol component of the facility will produce fuel from cassava, sourced from the local communities. The cooking fuel will be sold to residents of Maputo. American-based ICM, who has experience with food and fuel integrated biorefineries, helped to design and construct the plant. Last week, CleanStar held a ribbon cutting ceremony and representatives from ICM joined the biorefinery employees and community for a celebration.

Dave Vander Griend, CEO of ICM, attended to ceremony. “ICM is honored to be among the key partners involved in this historic milestone of launching the world’s first sustainable cooking fuel facility. The extraordinary level of commitment demonstrated by CleanStar Mozambique/CleanStar Ventures, Novozymes, and Bank of America Merrill Lynch made our decision easy when it came to supporting the project.”

The project had strong support because the biorefinery was designed to reduce poverty and environmental degradation and improve the health of families in Africa. Many in the country spend a large percentage of their income on purchasing charcoal to burn for fuel and burning charcoal causes health issues. A portion of the burden will be reduced because the fuel produced from biorefinergy will provide community members with a lower cost fuel.

The facility also provides a new income source for local farmers. The farmers will be able to sustainably grow the crops while the facility will produce fuel in a safe and sustainable method.

“Growing up on a farm, it was taught that wealth comes from the ground, crops are cultivated – nourishment is provided and the promise of agriculture is unleashed through producing more food and a stronger local economy,” continued Vander Griend. “We believe passionately in improving the health, wealth, and environment of the Mozambique people. Through unique collaborations like this, we can come together to improve African agriculture and potentially replicate this model throughout other developing countries in the world,” he concluded.

advanced biofuels, biofuels, Ethanol, International

Next Steps for E15

Joanna Schroeder

The Nebraska Corn Board recently hosted some meetings, sponsored by the Blend Your Own (BYO) ethanol campaign, to discuss the roll-out of E15. Nearly 75 people attended the meetings ranging from producers, fuel retailers and petroleum marketers to representatives of the ethanol and agricultural industries. Director of Market Development for the Renewable Fuels Association (RFA), Robert White, offered information on the next steps needed to bring E15 to pumps across the country.

“There is a lot of misinformation about E15 such as requirements for ethanol plants and fuel retailers that is coming from various sources. This meeting was necessary to get the right information to the right people,” said White. “We want to see E15 introduced legally and safely.”

Several requirements were put into place by the EPA before the fuel became legal this year. An E15 label had to be approved. A fuel survey had to be conducted. In addition, the ethanol industry, working with the fuel retail industry, was required to devise a misfueling mitigation plan as well as create a consumer education campaign designed to tell consumers what vehicles could safely use E15. These requirements were discussed as well as data on health effects and incentives available to assist retailers with the installation of E15 pumps.

Curt Friesen, District 3 Director on the Nebraska Corn Board, concluded, “It is crucial that all the necessary steps are taken before offering E15 at the pump. The Nebraska Corn Board is pleased to take a leading role in the introduction of E15 in Nebraska.”

biofuels, blends, Ethanol, RFA

Subcommittee Hears Support for Energy Programs

Cindy Zimmerman

The House Agriculture Subcommittee on Conservation, Energy and Forestry was urged to reauthorize Farm Bill energy programs and provide them with mandatory funding during a hearing on “Formulation of the 2012 Farm Bill: Energy and Forestry Programs” on Friday.

“American agriculture is the key to the successful development and commercialization of clean, abundant, renewable, domestic energy and biobased products in this country, and the ‘core’ Farm Bill energy programs provide American farmers, ranchers and entrepreneurs with the tools they need to make it happen,” testified Ryan Stroschein, co-director of the Agriculture Energy Coalition (AgEC).

“Although relatively new, the Farm Bill energy programs already have had a tremendous positive impact on economic and job growth in rural America, and they can do so much more,” said Stroschein. “USDA estimates that the BCAP and Biorefinery Assistance programs alone have the potential to create more than 700,000 new jobs as a result of increased cellulosic feedstock production and the construction and operation of new biorefineries.”

National Biodiesel Board chairman Gary Haer with the Renewable Energy Group highlighted the biodiesel industry’s growth and diversity, pointing out that more than half of the lawmakers on the panel have at least one biodiesel production plant in their districts.

“NBB estimates that those plants and others like them across the country supported more than 39,000 jobs in all sectors of the U.S. economy in 2011,” Haer testified. “Most of the more than 200 biodiesel production facilities in the U.S. are located in rural areas, and a majority of the feedstock used to produce biodiesel is grown or originates in rural areas.”

Haer specifically called for the committee to continue funding for the Biodiesel Fuel Education Program and the Bioenergy Program for Advanced Biofuels, programs that are critical to raising awareness of biodiesel and stimulating new production. The programs are succeeding, he noted, pointing out that they helped the industry produce a record of nearly 1.1 billion gallons of fuel last year.

advanced biofuels, Biodiesel, Cellulosic, Ethanol, Ethanol News, Government, NBB

New Sorghum Renewables Program Director Named

John Duff has been named renewables program director for The United Sorghum Checkoff Program (USCP).
Duff, a native of Levelland, Texas, has previously served as an intern for U.S. Representatives Randy Neugebauer and Kevin Brady, as well as with Combest, Sell and Associates. Duff also held an internship for USDA’s Economic Research Service where he managed data on a project examining the impacts of bilateral free trade agreements on agricultural trade.

Duff’s family farms near Levelland and remains involved in Levelland/Hockley County Ethanol LLC.

“Renewables have become a valuable sector of the sorghum industry,” said Bill Greving, USCP board member and chair of the Renewables Committee. “John’s leadership as renewables director will help create more opportunities for producers as this program moves forward. John will be a great asset to the Sorghum Checkoff as he brings with him a good deal of experience in working within the industry.”

biofuels, sorghum

Republicans Tell Military to Stop Buying Clean Energy

Joanna Schroeder

This week Republicans, led by Rep. Conaway, submitted a proposal that will prohibit the Defense Department from buying alternative fuels that cost more than traditional fuels. This has come at a time when the Defense Department is moving full speed ahead with the testing of renewable fuels in various military equipment including planes, boats, helicopters, and other military vehicles. The military is also researching the use of solar and wind energy and partnering with American companies to develop and deploy the technologies.

While it is true that in most cases advanced biofuels cost more per gallon than traditional petroleum based fuel, the only way to reduce the per gallon cost of advanced fuels is to bring them to market at commercial scale – something many groups are fighting tool and nail.  The same is true in reaching per watt parity with solar and wind energy.

In response to this proposed action, Operation Free sent a letter to the Senate Armed Services Committee calling on Congress to support the military’s efforts as it leads the way in development of advanced biofuels and renewable energy. The organization criticized members of Congress who advocate for policies that have already proved to be failures. The letter states, “We must change how we use energy in this country — and the military is leading the way. ”

Danger Room’s Noah Shachtman summed up the ramifications of the proposal well, ” If the measure becomes law, it would make it all-but-impossible for the Pentagon to buy the renewable fuels. … And it might very well suffocate the gasping biofuel industry, which was looking to the Pentagon to help it survive.”

advanced biofuels, biofuels, Opinion, Solar, Wind

Algasol Renewables Partners with OriginOil

Joanna Schroeder

Algasol Renewables, based in Palma De Mallorca, Spain, has agreed to work with OriginOil on the development of an integrated algae growth and harvesting system. Algasol has a patented technology for low-cost cultivation of micro algae for biofuels and byproducts. By bundling their products, the companies hope to achieve new levels of cost and performance in micro algae cultivation for biofuels and bioproducts.

NASA and Lawrence Berkley are working with Algasol to refine their technology, and also collaborates and maintains a close relationship with Arizona State University’s Center for Algae Technology and Innovation.

Miguel Verhein, executive director of Algasol Renewables said, “With customer demand for an integrated algae production process rising, we need to offer our customers a means of harvesting as well. We plan to recommend OriginOil’s field-proven chemical-free, high flow and low-energy harvesting system, and once available, the integrated biocrude system they are developing with the Department of Energy.”

Algasol’s floating bags or photobioreactors (PBRs) can operate in the ocean or in land-based salt water ponds, and have received a patent in 70 countries. Because they float, Algasol believes their PBRs achieve optimal light exposure with strong productivity results and avoid the high temperature and excess salinity often encountered in solar growth systems.

“Algasol’s patented system focuses on how to grow algae in floating bags, and their testing has indicated this can be much more efficient than other cultivation methods,” said Riggs Eckelberry, OriginOil’s CEO. “Now with NASA and Lawrence Berkley working with Algasol, we are excited and eager to contribute our own breakthrough harvesting system to help us collectively achieve a cost breakthrough in the race to compete with petroleum.”

advanced biofuels, algae, biomaterials

U.S. Solar Industry Sets its Sites on China

Joanna Schroeder

This week U.S. Senators Sherrod Brown (D-OH) and Charles Schumer (D-NY) launched a proposal aimed at reducing China’s hold on the global solar panel market. The proposal would bar Chinese-made solar panels from qualifying for the 30 percent tax credit that U.S. individuals and businesses receive for purchasing and installing solar panels. U.S. installations of solar panels has grown 70 percent per year since 2008, but the majority of these panels were manufactured in China.

The new legislation would reduce the scope of solar panels eligible for the existing 30 percent tax credit. To become eligible, 70 percent of the parts of the qualifying solar panel must be made in America. If the final point of manufacture is in the U.S, then only 50 percent of the parts would need to be American made.

“We can’t trade our dependence on foreign oil for a dependence on Chinese-made solar panels,” said Senator Brown. “We went from a solar trade surplus with China to a solar trade deficit in a matter of years. Ohio workers can compete with anyone in the world, but they deserve access to a level playing field. When the Chinese government provides direct export subsidies to its solar manufacturers, that’s not competing – it’s cheating. And it’s costing American jobs in solar manufacturing.”

“The American tax code should not make matters worse by encouraging the purchase of Chinese-made solar panels. Our plan will ensure that American tax incentives support American solar panel manufacturers,” added Brown.

Chinese companies, according to Brown and Schumer, have been able to take hold of the solar industry at a rapid rate, in part because they have taken large, government-subsidized loans from banks. This has led to plunging prices for U.S. wholesale solar panel makers. Today, prices are around $1 a watt of capacity today, down from $1.80 in January and $3.30 in 2008.

Electricity, Energy, Solar

API Says EPA Jumped the Gun on E15

Joanna Schroeder

The American Petroleum Institute (API) has publicly said that the Environmental Protection Agency (EPA) jumped the gun on giving approval for the use of E15. Jack Gerard, President and CEO of API told reporters that testing by the Coordinating Research Council showed that use of E15 – gasoline with 15 percent ethanol – could harm car and truck engines, potentially affecting millions of cars and trucks.

The ethanol industry was quick to respond and Ron Lamberty, Senior Vice President for the American Coalition for Ethanol said, “The real problem here is that people may read about this project and think that it actually has some connection to the real world. The parameters of the test, the definitions of “pass” and “fail” and even the cars selected were carefully chosen to produce the results the study’s funders wanted.”

Lamberty noted that the Department of Energy (DOE) responded to the API study saying that they deliberately included engines with known durability issues, and one engine failed the API tests while running on gasoline without ethanol. Renewable Fuels President and CEO Bob Dinneen echoed the words of DOE and emphasized the importance – and public desire – to diversify our fuel supply including using higher level ethanol blends.

“How Big Oil can trot out this small, slanted, flawed study as something we should take seriously, while calling EPA’s two and a half years of E15 testing a “rush to judgment” is beyond me,” added Lamberty. “Saying it more often and louder won’t make it the truth. All this latest hit piece proves it that ethanol’s opponents are becoming more desperate to keep ethanol – which could help consumers save more at the pump – completely out of the marketplace.”

Tom Buis, CEO of Growth Energy, noted that E15 is the most tested fuel blend in history and is safe to use in cars and light trucks newer than 2001. “Most concerning of all, is a resistance by groups to end our addiction to foreign oil by refusing the American people the voluntary choice of E15 in a free market. While the large oil companies continue to espouse their support of a free market, they have put roadblocks up at every opportunity to prevent the free choice they claim to champion so dearly,” concluded Buis.

biofuels, blends, Ethanol, Oil

Study: Ethanol Lowers Iowa Gas Prices

Joanna Schroeder

According to a new study released by the Center for Agriculture and Rural Development (CARD), ethanol lowers gas prices in Iowa by at least $1.69 per gallon. This saves the average Iowa family $2,363 per year on gas. What could you use your savings to buy? Fuel, lodging and fun for an Orlando family vacation or 262 movie tickets.

“Bolstering domestic fuel supplies by 10 percent, ethanol reduces demand for high-cost, foreign crude oil,” said Lucy Norton, Managing Director of the Iowa Renewable Fuels Association (IRFA). “With the average wholesale price of gasoline jumping 30 percent in the last year, ethanol is helping take the sting out of price shock at the pump.”

Each year CARD updates its study. When compared to 2011 data, ethanol has reduced the cost of a gallon of gas by an additional 32 cents. In a post from Cindy Zimmerman earlier this week, Dermot Hayes, ISU professor and one of the authors of the study, explained the methodology of the study, commissioned by the Renewable Fuels Association.

“The greatest contributor to pump prices per gallon is the cost of crude oil according to the Energy Information Administration (EIA),” added Norton. “Ethanol adds 10 percent to the fuel supply displacing the heart of the problem – high-priced crude oil. In fact, while ethanol is 10 percent of a gallon of gasoline, it accounts for only 5 percent of the pump price.”

biofuels, Ethanol