RFA E-15 Ad

REG Financials Strong

Joanna Schroeder

REG, America’s largest biodiesel producer, came out strong in its first quarter financials. Earlier this year, REG had a very successful public offering. For the quarter ending March 31, 2012 revenues were $188.2 million, an increase of 80 percent compared to revenues of $104.4 million for the same period in 2011. When adjusting for EBITDA, revenues were $12.7 million, an increase of 140 percent compared to $5.3 million for the same period in 2011.

REG’s balance sheet also remains strong with cash of $75.2 million at the close of the quarter, compared to $33.6 million at December 31, 2011.

“During our first quarter as a publicly traded company, Renewable Energy Group again demonstrated why we are a leader in the advanced biofuel industry,” said Daniel J. Oh, President and Chief Executive Officer of REG. “We grew our biodiesel volumes and revenue substantially, raised capital with a successful IPO, and made solid progress toward upgrades and technology advancements at our biorefineries. With strong demand due to RFS2, and a fleet of biorefineries able to flexibly arbitrage lower cost feedstocks, we believe we are well-positioned to profitably grow our business in 2012 and beyond.”

REG remains poised to help the country continue to ramp up biodiesel production to meet the goals set forth by the Renewable Standard Fuels.

Biodiesel, biofuels, REG

New Tool for Energy Efficiency Education

Joanna Schroeder

For those looking to learn more about energy efficiency, a new educational site has launched: MyEnergyGateway.org. Hosted by the Association of Energy Services Professionals (AESP) Foundation. The site was created to become a library of training programs, degrees and certifications that focus on energy efficiency, sustainability, green and alternative energy. In addition, visitors will also be able to research information about engineering, green building design and other disciplines.

While the site was created for students, returning military personnel and displaced workers, anyone interested in beginning or continuing his or her education in the space will find this site useful. Not only does it contain lists of education programs, but also compares tuition costs, room and board costs, student to faculty ratio, and scholarship and internship opportunities among other information.

Why this site?

In 2011, ASEP published a survey of its members and nearly 60 percent cited a lack of talented workers in the field and more than half were in the process of recruiting for open positions. The U.S. Department of Energy funded the costs of developing the site through a grant in an effort to promote the need and types of jobs in the energy sector.

“Companies and utilities involved in creating energy efficiency programs are facing a lack of talented and adequately traine candidates for jobs,” said Meg Matt, President & CEO of AESP. “MyEnergyGateway.org serves as an educational pathway for students, returning military and those seeking a career change to better understand the numerous opportunities that currently exist in energy. The website encourages users to enter the industry and quickly identify the best options to pursue.”

bioenergy, biofuels, energy efficiency, Video, water

Ethanol Report Analyzes USDA Corn Numbers

Cindy Zimmerman

Ethanol Report PodcastThe first guess of corn production for the new year in USDA’s May 10 World Agricultural Supply and Demand Estimates report is even higher than many in the industry expected.

“By all accounts, it could be a monster,” says Renewable Fuels Association (RFA) Vice President of Research and Analysis Geoff Cooper who did an analysis of the numbers that came out this morning.

rfaBesides a record projected corn crop for 2012 of 14.8 billion bushels, Cooper says there are a number of interesting points to be made about the report, like the fact that use for ethanol is expected to remain steady, while usage for exports and animal feed are increased. “This report shows the increases in demand would not be coming from ethanol,” Cooper says. “So all this rhetoric we hear about ethanol diverting corn away from the feed market, what we’re seeing in this report is that isn’t the case.”

In addition, Cooper says adding in the use of the ethanol co-product distillers grains for livestock feed, “you end up with the equivalent of almost seven billion bushels of corn and co-products going into feed use and that’s an all time record.”

Listen to Cooper’s analysis of the numbers in this edition of “The Ethanol Report.” Geoff Cooper Analyzes USDA WASDE Report

Audio, Ethanol, Ethanol News, Ethanol Report, RFA, USDA

USDA Offers Optimistic Outlook for Corn Crop

Cindy Zimmerman

The first U.S. Department of Agriculture outlook for this year’s corn crop is calling for record yields and record production, while corn use for ethanol is expected to remain the same.

The May 10 World Agricultural Supply and Demand Estimates report projects U.S. feed grain supplies for 2012/13 at a record 416.3 million tons, up 16 percent from 2011/12 at a record 416.3 million tons, with corn production called at a record 14.8 billion bushels, up 2.4 billion from 2011/12.

A projected 5.1-million acre increase in harvested area and higher expected yields, compared with 2011/12, sharply boost production prospects. The 2012/13 corn yield is projected at a record 166.0 bushels per acre, 2.0 bushels above the 1990-2010 trend reflecting the rapid pace of planting and emergence. Despite the lowest expected carry-in in 16 years, corn supplies for 2012/13 are projected at a record 15.7 billion bushels, up 2.2 billion from 2011/12. Total U.S. corn use for 2012/13 is projected up 9 percent from 2011/12 on higher feed and residual disappearance, increased use for sweeteners and starch, and larger exports.

The report kept projected corn use for ethanol unchanged at 5 billion bushels for this year on weak gasoline consumption limiting domestic blending opportunities. In an analysis of the report this morning, the Renewable Fuels Association said, “While still just an estimate, the confidence USDA is displaying in American farmers underscores their unique ability to feed the world and help renewably fuel the nation. There is a lot of growing season left, and these numbers could change by the fall. But, with normal growing conditions it is clear that farmers will continue to meet the bell and provide safe, reliable food and clean, domestic fuel and silence those ‘chicken littles’ that perpetually predict a shortage of corn and catastrophe in the grocery aisle.”

corn, Ethanol, Ethanol News, RFA, USDA

EdeniQ Secures $30M in Bio Funding

Joanna Schroeder

Despite the sluggish economy, select advanced bioproducts companies are still receiving funding. EdeniQ has announced that they have secured over $30 million in capital in the form of an equity investment and debt facility. The funds will be used to continue development of its technology to convert sugars to biomaterials such as biochemicals and biofuels. The investment was led by current investors along with a new investor, Flint Hills Resources Renewables.

According to EdeniQ, its technology increases yield and output at existing ethanol plants and provides a pathway to move into cellulosic feedstocks. The Cellunator mills a variety of biomass into small, uniform pieces of feedstock that using Pathway enzymes to break down the materials can be converted at low cost to sugars. The company’s technology can be added as a bolt-on to existing ethanol facilities or integrated into new cellulosic ethanol processing plants.

“The market is eager for innovation that can scale from today’s ethanol technology to tomorrow’s resource requirements by creating the lowest-cost route to cellulosic sugars and subsequent high-value products,” said Brian Thome, President and CEO, EdeniQ. “The investments by these prestigious organizations allow EdeniQ to continue our strategy of taking advantage of the existing infrastructure in place across the country and providing a proven pathway to increased sugar yield.“

Flint Hill Resources has four ethanol plants operating in Iowa. Jeremy Bezdek, the company’s managing director of innovation said they invested in EdeniQ because, “EdeniQ’s proprietary technologies provide significant value for the dry-mill ethanol producer in today’s marketplace. Our investment in EdeniQ is another step in our vision to enhance the competitive advantage of our ethanol production facilities.”

advanced biofuels, biochemicals, biomaterials

South Dakota – Home to Substandard Gas?

Joanna Schroeder

South Dakota could continue to be the home of substandard gas if refiners have their way. If the American Coalition for Ethanol (ACE), a national ethanol organization based in Sioux Falls, South Dakota has its way, it will not become the dumping grounds for low-octane fuel. Historically the state has allowed 85 octane gasoline for sale in the western part of the state but it has been discovered to be “leaking” into other areas. Ironically after a review of state laws and rules by the SD Weights and Measures it was determined that the sale of this gas is illegal.

ACE Executive Vice President Brian Jennings asks that the state follow the letter of the law and resist making 85 octane gasoline available throughout the state.

“We strongly oppose this recommendation to bend the rules so refiners can pad their profits by dumping substandard gasoline into South Dakota,” Jennings said. “Eighty-five octane gasoline is bottom of the barrel fuel that according to vehicle manufacturers will reduce fuel economy and performance, increase harmful tailpipe emissions, and could damage engines.”

The organization has learned that the State would require a label to inform consumers that the 85 octane fuel may not meet engine manufacturer’s minimum standards for vehicle performance. Before any changes take effect, however, the state will open the discussion up for public input. ACE along with other ethanol and corn grower stakeholders plan to submit comments in opposition of the rule change.

“Even though ethanol’s blending octane is 113, the highest and cleanest source of octane on the market, when this low-grade gas is blended with 10 percent ethanol we are very concerned ethanol will be mistakenly blamed for engine performance problems,” continued Jennings. “That is an unacceptable consequence for South Dakota’s ethanol industry and thousands of the state’s residents and farmers who have invested in ethanol production.”

biofuels, Ethanol, Oil

Sports Industry Looks to Solar

Joanna Schroeder

Soccer teams in Maryland will now be playing games with the help of the sun. Solar Energy World has been contracted to install a solar energy system in Soccer Dome II in Harmans, Maryland. The system will include the installation of 546 solar panels paired with a 126 kWh photovoltaic grid-interactive system over 13,067 square feet of roof space. When the two solar technologies are pared together, they are estimated to generate 130,000 kWh of electricity. The projected is expected to be completed by the end of June.

“We’re installing the system because we’re confident it will yield double bottom-line benefits by reducing our carbon footprint and our utility bill,” said Soccer Dome President Clif Everett.

The solar energy will be hooked into the city’s grid and produce enough energy to offset nearly 85 percent of the Soccer Dome’s energy needs as averaged over a total year. In summer months when the system is anticipated to generate more electricity than the stadium needs, the excess will be sold to BGE. Many sports complexes across the country are adding solar energy to their green mix.

Solar Energy World Vice President Geoff Mirkin said of the project, “Forward-thinking organizations, like Soccer Dome, that increase our region’s energy production by installing solar panel systems have a vital impact on their surrounding communities. More businesses and organizations are looking to cut costs and resources needed to build and operate sports venues. When they find ways to do so while reducing their environmental impact, they enhance the return on investment tenfold. It’s a real win-win situation.”

Electricity, Energy, Solar

Report: Biofuels Contribute to Global Economy

Joanna Schroeder

According to a new report, the biofuels industry contributed $277.3 billion to the global economy in 2010. “Contribution of Biofuels to the Global Economy” was commissioned by the Global Renewable Fuels Alliance (GFRA) and outlines the economic footprint of the biofuels industry. The actual research was conducted by Cardno Entrix.

Global biofuel production produced 110 billion litres in 2010 and supported nearly 1.4 million jobs in all sectors of the global economy according to GFRA. By 2020 the industry is forecasted to produce over 196 billion litres and support over 2.2 million jobs across all sectors worldwide. It is expected that the majority of future growth will come from developing nations in Asia and Africa.

“It is promising to see the global biofuels industry growing during these difficult economic times,” said Bliss Baker, spokesperson for GFRA. “The global biofuels industry is a bright spot in the current world economy and is contributing billions of dollars to output and creating hundreds of thousands of jobs all while reducing our reliance on crude oil.”

Baker added that a growing biofuels industry in developing nations will help bring wealth, jobs and prosperity while reducing reliance on oil. He concluded by noting that the report truly demonstrates the how far the biofuels industry has come in the past decade and showcases continued growth of the industry.

biofuels, Ethanol

Strides Made in Converting Cassava to Ethanol

Joanna Schroeder

TMO Renewables has announced they are making headway with producing pilot scale levels of ethanol from cassava stalk. The company is working with several Chinese fuel and food producers. TMO estimates that they will be able to produce a gallon of ethanol for less than two dollars, an important step for commercialization of fuels using advanced feedstocks.

The company has developed a technology platform that can break down a large number of different types of biomass into cellulosic ethanol. The per gallon prices are nearing a point of competitiveness, TMO says, due to their ability to reduce costs through savings in maintenance, production time and capital expenditures. They have also been able to reduce costs through enzyme loadings. When using cassava stalk, TMO is predicting their conversion process will yield 70 to 80 gallons of ethanol per ton of feedstock.

“The total global capacity for 2G biofuels should reach more than 4 billion gallons by 2015,” said Pavel Molchanov, energy analyst at Raymond James. “Crucial to even greater production of cellulosic ethanol is the availability of diverse feedstock options, and cassava stalk can play an important role in the Asian market.”

TMO’s bread and butter partners have been the Chinese who developed the first industrial-scale biorefinery using cassava.  TMO is currently finalizing its process design at its demonstration facility. Once achieved, the company will begin moving forward with plans to expand to commercial scale production.

advanced biofuels, Ethanol

Domestic Energy Tax Credits on Congress “To Do” List

Cindy Zimmerman

President Obama made up a “to-do list” for Congress during a stop in Albany, New York yesterday that includes renewing tax incentives for the development of new domestic energy sources.

At a speech to students at the State University of New York, the president said if Congress fails to act soon, clean energy companies will see their taxes go up and they could be forced to lay off employees. “In fact, we’re already hearing from folks who produce wind turbines and solar panels and a lot of this green energy that they’re getting worried because there’s uncertainty out there,” he said. “Congress hasn’t renewed some of the tax breaks that are so important to this industry. And since I know that the other side in Congress have promised they’ll never raise taxes as long as they live, this is a good time to keep that promise when it comes to businesses that are putting Americans to work and helping break our dependence on foreign oil. So we should extend these tax credits. That’s on the “To-Do” list.”

The Advanced Ethanol Council applauds President Obama’s remarks. “The President is right to ask for an extension of existing clean energy tax incentives, including those for cellulosic and advanced ethanol technologies, which level the playing field for clean energy investments in the face of decades-old and permanent tax breaks for the fossil fuel industry. The country will not win the race to develop and deploy clean energy technologies if the U.S. tax code continues to favor incumbents over innovators. We look forward to working with the White House and Congress to ensure that America emerges as the world leader in clean energy and biofuel development.”

advanced biofuels, AEC, Cellulosic, Ethanol, Ethanol News, Solar, Wind