Novozymes Nebraska Enzyme Plant Opens

Cindy Zimmerman

Advanced biofuels took a $200 million step forward on the march toward commercialization Wednesday with the official opening of Novozymes’ enzyme plant in Blair, Nebraska.

The inauguration of Novozymes’ new Blair facility was celebrated with employees, customers, community leaders and government officials, including the governor of Nebraska, Dave Heineman, U.S. Department of Energy Senior Advisor Jason Walsh and Blair Mayor James Realph. The governor and the mayor together ceremonially started the fermentation process at the plant. “The grand opening of Novozymes is important for the ethanol industry and for energy independence,” said Governor Dave Heineman. “Nebraska is one of the top producers of ethanol in America, which makes our state the perfect site for this facility.”

With the 100 new jobs created by the plant opening, Agriculture Secretary Tom Vilsack highlighted the importance of expanding tax credits for investments in clean energy manufacturing for the economy during a conference call today with Novozymes President Adam Monroe. Novozymes leveraged its $200 million private investment in the Blair facility with a 48C manufacturing tax credit from the federal government.

“This program (48C) along with several other tax credits really create the opportunity for a clean energy future with three very important results,” said Vilsack. Those results, he says, include increasing farm income, creating jobs, and reducing reliance on foreign oil.

Monroe says biofuels currently make up 16% of Novozyme’s $2 billion in revenues. “We’ve done a number of research projects funded by DOE and have reduced the cost of the key enzymes needed for advanced biofuels production by 90%,” he said. “Now it’s about getting steel in the ground and moving ahead. We wanted to be ready when this industry commercialized and now we are.”

Listen to comments from Secretary Vilsack and Adam Monroe here: Vilsack/Monroe press conference

advanced biofuels, Audio, Biotech, Ethanol, Ethanol News, USDA

Senator Visits Michigan Cellulosic Ethanol Facility

Cindy Zimmerman

Senator Debbie Stabenow (D-MI) highlighted the benefits of next-generation biofuels during a tour of the Alpena Biorefinery in the northern part of her state.

“This innovative partnership is producing Michigan-grown fuel that has the potential to spur new job growth and help reduce our dependence on foreign oil,” said Stabenow, who chairs the Senate Agriculture Committee which just sent a new farm bill to the full Senate that includes initiatives to expand biofuel innovation and production. “New, advanced biofuels right here in Alpena – that’s a pretty big deal,” she said.

The Alpena Biorefinery is a partnership between American Process Inc. (API) and Decorative Panels International (DPI) that uses advanced technology to convert hardboard waste into cellulosic ethanol. “DPI is committed to continuing the collaborative efforts with API to leverage and integrate their proprietary technology in converting our waste stream to a marketable biofuel,” said Tim Clark, President of Decorative Panels International. “APIs success in operating the biorefinery will support our objectives for sustainable manufacturing and environmental stewardship.”

The Alpena Biorefinery is expected to start commercial production in June.

advanced biofuels, Cellulosic, Ethanol, Ethanol News, Government

Iowa Ag Secretary Says Ethanol is Strong

Cindy Zimmerman

Iowa Secretary of Agriculture Bill Northey continues to be bullish on ethanol, despite tight margins for producers.

Speaking on Iowa Public Television’s Iowa Press program Sunday, Northey disagreed with a reporter’s question that losing the blenders tax credit has put the ethanol industry on “quicksand” and could be sinking. “No, ethanol is certainly very strong,” Northey said. “We have 41 ethanol plants in Iowa. Produce over 3 billion gallons of ethanol a year and we actually lost those tax credits last December 31st. So, we have been operating the first five months of this year without that 45 cent a gallon tax credit.”

Northey admitted that the ethanol plants are operating on very tight margins right now but they are still open. “There is some belief that maybe a few of those will slow down over the summer depending on what grain prices are and the availability of corn,” he said. “These plants have gotten more efficient and then we have the next generation of plants. We have some cellulosic ethanol plants that are in the process of groundbreaking or letting bids for new production facilities. So, I think we have that next generation that is coming as well.”

Northey, who is a corn farmer and former president of the National Corn Growers Association, says that ethanol has had a positive impact on the state’s agriculture industry overall, even for livestock producers because of the co-product distillers grains (DDGS). “So, corn goes in the front, the starch is used for ethanol, the product coming out of the back is distillers dry grains and solubles. That is a wonderful cattle feed and we are actually seeing an increase in the number of cattle fed in Iowa because of that,” Northey added.

Ethanol, Ethanol News, Government

Is Atrazine Settlement Good for Farmers?

Cindy Zimmerman

Our latest ZimmPoll asked the question, “Which group should restaurants consider experts on animal care?” Recently many folks in agriculture participated in an online thank you campaign for Domino’s Pizza. Why? Because the restaurant chain made a decision based on good humane animal practices and did not give in to the demands of the animal activist group HSUS. According to our poll 48% said Farmers, 35% said Veterinarians, 16% said Ag Industry, 1% said Activists and no one selected Government. Sounds like good common sense response to me. So take notice all you restaurant chains. If you need advice and want to do the right thing for your customers and the folks who produce safe, humanely produced food, ask the experts and not people with an agenda.

Our new ZimmPoll is now live and asks the question, “Is Atrazine lawsuit settlement good for farmers?” A lawsuit against Syngenta related to the herbicide was has been settled with an offer of over $100 million by the company, even thought there has been no evidence of harm in drinking water caused by the product and the plaintiffs in the lawsuit acknowledged they had not commissioned any research on the subject or seen any new research to the contrary either. What do you think?

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

ZimmPoll

Harvesting Pennycress for Biodiesel

Cindy Zimmerman

More farmers are growing weeds to harvest for biodiesel.

Some Midwestern farmers are just finishing their harvest of pennycress, a weed that produces about 20,000 seeds per plant that are composed of 36% oil, twice that of soybeans, and has a chemical composition that is ideally suited for conversion to biodiesel or green renewable jet fuel. An acre of pennycress can yield the equivalent of about 80 gallons of oil. This year the pennycress oil is priced similarly to soybean oil.

“I saw an opportunity to produce an energy crop here-and-now on underutilized assets with no negative impact to the environment or the farm,” said Peter Johnsen, who has been instrumental in commercialization of the crop. Johnsen is a retired director of the USDA’s National Center for Agricultural Utilization Research in Peoria, Ill. “A great benefit is that we can grow pennycress during the winter on existing farms that would otherwise just sit dormant. It has no impact on existing crops, conservation grounds, or critical wildlife habitat,” he said. Johnsen estimates there are potentially 40 million existing farm acres for it.

For growing pennycress, the best approach the team found is to drop the seeds from an airplane into standing corn in the fall. It germinates under the corn, and is harvested in early spring using a soybean combine, before soybeans are planted. It’s then crushed with conventional crushing equipment, and the meal has potential value as livestock feed.

The National Biodiesel Board is encouraged by the development of this new feedstock. “The diversity of fats and oils from which biodiesel can be made has always been one of its greatest strengths, and pennycress is a perfect example of how our industry is innovative and sustainable,” said Alan Weber, who runs the National Biodiesel Board’s feedstock development program.

There’s even a website devoted to growing pennycress as an energy crop – growpennycress.com.

Biodiesel, feedstocks

Big River Resources Becomes Growth Energy Member

Big River Resources, LLC has become the 66th associate member of Growth Energy, the leading coalition of U.S. ethanol supporters. Big River adds its three plants, located in Galva, Ill., Dyersville, Iowa and Boyceville, Wisc., to Growth Energy’s plant membership, making a total of 79.

“Being able to add the three Big River Resources plants to our coalition is a great accomplishment,” said Growth Energy CEO Tom Buis. “This group represents a large market share across the Midwest, and is directly responsible for producing a significant quantity of ethanol. Their membership further enhances our ability to raise awareness of the benefits of ethanol as a fuel source, as well as better educates Americans on the importance of diversifying our energy basket with home-grown products.”

Big River Resources, which began producing ethanol in 2004, now has the capacity to produce approximately 400 million gallons of ethanol per year, and purchases approximately 138 million bushels of locally-grown corn. In total, the company owns four separate ethanol, feed and corn oil producing facilities across three states, employing more than 230 people and earning revenues in excess of $1 billion. The addition of the three plants greatly increases Growth Energy’s reach and visibility across a key market.

“We are enthusiastic in promoting our company’s original goals and feel that Growth Energy is an effective means for promoting these goals,” said Big River Resources President and CEO Raymond Defenbaugh.

Ethanol, Growth Energy

SunPower Celebrates Anniversary in Wisconsin

Cindy Zimmerman

SunPower Biodiesel is celebrating the one-year anniversary of their retail pump in Cumberland, Wisconsin today.

One year ago, SunPower Biodiesel emerged into the retail energy sector by opening their first fueling station in Cumberland selling high biodiesel blends, including B99 & B20. According to the company, SunPower started its sales with local farmers, “who quickly saw the benefits of using high biodiesel blends in their equipment; cooler (and quieter) running engines, better lubricity, higher cetane and less expensive compared to counterpart #2 diesel.” SunPower is now supplying trucking fleets, school buses, county highway departments, local business, and large oil companies looking to expand their offerings.

In celebration of the anniversary today, SunPower is holding open house at its Cumberland production facility from 1pm – 4pm.

Biodiesel

ACE Highlights Ethanol at Farm Bill Session

Cindy Zimmerman

Ethanol was highlighted during a Farm Bill listening session in South Dakota this week.

ACEAmerican Coalition for Ethanol (ACE) Executive Vice President Brian Jennings made comments about the importance of the homegrown fuel to the economy in general rural areas in particular during the session hosted by Representative Kristi Noem (R-SD) on Thursday.

“The ethanol industry recognizes the need for farmers and ranchers to succeed and we support a robust commodity title in the Farm Bill which helps mitigate the risks of price volatility and weather-related crop loss,” said Jennings. “We strongly support the energy title included in version of the farm bill enacted by the Senate Agriculture Committee, which contains $800 million in mandatory funding for critical initiatives such as the Renewable Energy for America Program (REAP) and Biomass Crop Assistance Program (BCAP). Specifically, USDA has been very resourceful and proactive in the last year by using a modest share of REAP funds, about $4.5 million, to help install nearly 300 blender pumps across 30 states.”

Jennings emphasized two other legislative priorities important to the ethanol industry, E15 and the Renewable Fuels Standard (RFS). He noted a study from Iowa State University’s Center for Agriculture and Rural Development last week found that ethanol supplies reduced wholesale gasoline prices by $1.09 nationwide last year and by $1.69 in the Midwest, saving a typical Midwest household about $2600 annually in 2011.

“While not farm bill-specific, E15 and the RFS don’t cost U.S. taxpayers a dime and contribute to making an affordable and clean source of high-octane fuel available to consumers,” said Jennings. “Unfortunately, several pieces of legislation have been introduced in the U.S. House to delay the implementation of E15 and repeal the RFS, and we ask Congresswoman Noem to help resist these efforts,” Jennings continued.

The U.S. Senate is expected to consider the Farm Bill in June and the House of Representatives will consider the legislation later this year.

ACE, Ethanol, Ethanol News, Government

Novozymes to Supply Biofuels Factory in Brazil

In December 2013, Brazilian bioenergy company GraalBio will start producing 82 million liters (22 million gallons) of advanced biofuels per year at a new factory in the Brazilian state of Alagoas. The plant will produce cellulosic ethanol from sugarcane bagasse and straw, and Novozymes will supply the necessary enzyme technology while Beta Renewables and Chemtex, both part of Italian chemical group Mossi & Ghisolfi (M&G), will provide other process technologies and engineering. Novozymes

“This announcement from GraalBio is fantastic news for the ethanol industry and for Brazil and it clearly signals the continuation of the green path Brazil has taken on biofuels,” says Peder Holk Nielsen, Executive Vice President of Novozymes. “We are thrilled to supply the enzymes to the first advanced biofuels facility in Brazil and proud to help GraalBio succeed.”

Advanced biofuels in the form of cellulosic ethanol is produced from biomass such as energy crops, agricultural residues or industrial and household waste. Enzymes are a key component of the production process, turning the biomass into sugar which can be fermented into ethanol.

As the advanced biofuels industry in Brazil scales up over the coming years, demand for enzymes is expected to follow and Novozymes has therefore begun searching for locations for new enzyme manufacturing plants in Brazil.

“The advanced biofuels industry is taking off in Brazil and we remain confident that cellulosic ethanol will play a significant role in Brazil’s energy future,” says Peder Holk Nielsen. “To support this, we are looking to establish new enzyme production facilities in Brazil, dedicated to making enzymes for the biofuels industry. The location of new plants will, among other things, depend on where the industry is expected to scale up, where Novozymes’ partners are located, and where the best framework conditions exist.”

Demand for ethanol is growing in Brazil and globally. Brazil expects to double its output of ethanol by 2020 to meet the growing demand from both domestic and export markets.Global production capacity of advanced biofuels is expected to reach 57 million liters (15 million gallons) in 2012 and for 2014, 945 million liters (250 million gallons) are under planned construction. A recent study from Bloomberg new Energy Finance estimates that the advanced biofuels industry has the potential to create jobs, economic growth, and energy security.

advanced biofuels, biofuels, Cellulosic, Ethanol

President Touts Clean Energy in Iowa

Cindy Zimmerman

President Obama stressed his support for renewable energy and biofuels during a visit to Iowa Thursday and urged Congress to renew tax credits that encourage clean energy production.

Obama spoke to workers at TPI Composites, a company that makes blades for wind turbines and employs more 700 people. “If Congress doesn’t act, companies like this one will take a hit,” he said. “Jobs will be lost. That’s not a guess, that’s a fact. We can’t let that happen.”

The president is specifically urging Congressional action on the Production Tax Credit, set to expire at the end of this year, and the Advanced Energy Manufacturing Tax Credit.

Anne Steckel, vice president of federal affairs for the National Biodiesel Board, which is pushing to have the biodiesel tax credit renewed, was pleased with the president’s comments. “We were happy to hear President Obama reaffirm his support for renewable energy and biofuels to assist in achieving an all of the above energy strategy,”said Steckel. “We are eager to see the Administration continue to grow the economy in Iowa and across the United States by following through as quickly as possible on the EPA’s proposal to increase biodiesel volumes under the Renewable Fuel Standard.”

During his Iowa visit, he POTUS also held a Twitter chat about his “to-do list” for Congress, answering questions live on-line, like the following:
#WHChat Fossil fuels are much much much cheaper and our economy is based on cheap energy. Why push Algae?
– bio fuels, wind , solar all getting cheaper each year & oil getting more expensive. Why we need all-of-the-above strategy. -bo

Biodiesel, Energy, Government, Wind