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Sapphire Energy Announces $144 Million Funding

San Diego-based biofuel developer Sapphire Energy, Inc. has secured the final installment of $144 million in a Series C round of venture funding that includes Arrowpoint Partners, Monsanto, and other undisclosed investors.

This round of funding is being used to directly support Sapphire’s active and on-schedule commercial demonstration of an algae-based biofuels facility in Luna County, New Mexico. The Green Crude Farm, also known as the Integrated Algal BioRefinery (IABR), is the world’s first commercial demonstration scale algae-to-energy facility, integrating the entire value chain of algae-based fuel, from cultivation to production to extraction of ready-to-refine Green Crude. With this latest investment round, Sapphire Energy’s total funding from private and public sources substantially exceeds $300 million.

This announcement follows several recent partnerships and deals supporting Sapphire Energy’s continued expansion in Green Crude production. Last month, Sapphire announced it will integrate Earthrise Nutritionals’ spirulina strain into its growing inventory of cyanobacteria and algae strains to expand resources for algae-to-energy production. In May 2011, Sapphire announced a multi-year agreement with The Linde Group to co-develop a low-cost system to deliver CO2 to commercial-scale, open-pond, algae-to-fuel cultivation systems, now underway at the Green Crude Farm. In March 2011, Sapphire and Monsanto entered into a multi-year collaboration on algae-based research projects. Sapphire also was awarded a $50 million grant from the Department of Energy and a $54.4 million dollar loan guarantee from the Department of Agriculture, providing security for a privately funded loan.

“The ongoing support from the private investment community speaks to how strongly they believe in the development of Green Crude as an alternative fuel resource, especially Sapphire Energy’s ability to commercialize it,” says Cynthia J. Warner, president and chairman of Sapphire Energy. “It is increasingly important to find domestically produced crude oil alternatives to improve the country’s energy security, meet global energy demands, and provide jobs. Continued private investment is a critical step in achieving these goals.”

“It’s amazing to see that what started from an idea scribbled on the back of napkin is now a leading force in support of the goal to improve energy security for the country,” explains Jason Pyle, CEO of Sapphire Energy. “Today, Sapphire Energy has a widely admired technology platform, outstanding leadership team, and significant ongoing support from the investment community, making it well positioned to achieve the goal of bringing domestically produced Green Crude oil to commercial scale.”

advanced biofuels, algae, Company Announcement

EPA Approves E15 as a Registered Fuel

Cindy Zimmerman

The Environmental Protection Agency (EPA) has finally taken the official step of approving 15% ethanol blended gasoline (E15) as a registered fuel.

On Monday, the EPA announced the approval of the first applications for registration of ethanol to make E15. “Registration of ethanol to make E15 is a significant step toward its production, sale, and use in model year 2001 and newer gasoline-fueled cars and light trucks,” EPA stated in a release.

To enable widespread use of E15, the Obama Administration has set a goal to help fueling station owners install 10,000 blender pumps over the next 5 years. In addition, both through the Recovery Act and the 2008 Farm Bill, the U.S. Department of Energy (DOE) and U.S. Department of Agriculture have provided grants, loans and loan guarantees to spur American ingenuity on the next generation of biofuels.

Today’s action follows an extensive technical review required by law. Registration is a prerequisite to introducing E15 into the marketplace. Before it can be sold, manufactures must first take additional measures to help ensure retail stations and other gasoline distributors understand and implement labeling rules and other E15-related requirements. EPA is not requiring the use or sale of E15.

Ethanol organizations applauded this development in the three year effort to approve sale of the mid-level ethanol blend as “one step closer to seeing low-cost, renewable E15 sold into the American fuels marketplace.”

Growth Energy“This announcement strengthens the ethanol industry’s efforts to innovate and continue to deliver domestically-produced and affordable alternatives to foreign oil,” said Tom Buis, CEO of Growth Energy. “With ethanol selling an average of a dollar a gallon cheaper than gasoline and $4 a gallon gasoline on the horizon, we’d encourage all Americans to ask their local filling station how soon they will see more-affordable E15.”

RFAWith higher gasoline prices in recent months, Renewable Fuels Association CEO Bob Dinneen says the approval means American consumers may soon have some much deserved relief at the pump. “States in the Midwest have begun to address their regulatory requirements and perhaps as early as summer we could see E15 at fuel stations in the Heartland of America,” said Dinneen. “The future for consumers, ethanol producers and this country has just gotten a little brighter, a little stronger.”

Under the EPA approval, fuel containing ethanol volume up to 15 percent is permitted to be used in model year 2001 and newer cars and light trucks. Gas pumps dispensing E15 will be clearly labeled so consumers can make the right choice.

blends, Ethanol, Ethanol News, Government, Growth Energy, RFA

Propane at the Pump

Cindy Zimmerman

More and more fleets and private vehicles these days are being converted to run on propane, adding to the more than 15 million vehicles worldwide now running on autogas – about 200,000 in the U.S., according to Alliance AutoGas.

Department of Energy statistics note that there are actually more LPG (liquified petroleum gas or propane) fueling stations in the United States than E85 – 2670 LPG stations compared to 2498 E85 pumps. Propane autogas is a bi-product of natural gas and oil refining and Alliance AutoGas estimates that 90% of autogas used in this country is made here, with an additional 7% coming from Canada.

Midwest-based GROWMARK and its FS cooperative members are national leaders in propane marketing and distribution and we had a chance to see a propane pump in action recently at the Fast Stop General Store in Effingham, Illinois. In this video, the pump is being used to fill the tank of a camper which uses the propane for heating, water and cooking – but they use the same system to fill the tanks of vehicles converted to run on propane. While they note that fuel efficiency is lower with propane, the cost is quite a bit less than gasoline. The GROWMARK System was recently named number six on LP Gas Magazine’s list of the top 50 LP-gas retailers in the United States.

GROWMARK, Propane, Video

Research Shows Value of Ethanol Co-Product for Dairy

Cindy Zimmerman

Research by a South Dakota State University dairy science student shows the energy value of the ethanol co-product distillers grains (DDGS) in dairy feed.

Sanjeewa Ranathunga was recognized for his research at the recent annual meeting of the Midwest American Dairy Science Association meetings with the Young Dairy Scholars Award.

Ranathunga is in the final stages of his Ph.D. program in dairy cattle nutrition at South Dakota State University under the guidance of Dr. Kenneth Kalscheur, Associate Professor in Dairy Science. During his time at SDSU, Ranathunga has conducted valuable research looking at DDGS and their impact on dairy cattle diets.

Ranathunga began his Master’s program at SDSU in dairy cattle nutrition under Kalscheur after completing an M.S. in Biochemistry at Pukyong National University in Busan, South Korea.

His Master’s research demonstrated that the non-forage fiber provided from DDGS and soyhulls can effectively replace starch provided by corn in dairy cow diets without negatively affecting the performance of dairy cows.

This research revealed that DDGS can be used as an effective energy source to replace high priced corn, and can decrease the feed cost of the diet. According to income over feed cost analysis, an economic advantage if $1.42 per cow per day was observed in this study when feeding the 21 percent DDGS diet compared with 0 percent DDGS diet.

Read more from iGrow.org.

dairy, Distillers Grains, Ethanol, Ethanol News

USDA Announces Ten Rural Energy Grants

Cindy Zimmerman

USDAThe U.S. Department of Agriculture has selected 10 projects for funding 10 to help rural small businesses and agricultural producers reduce energy consumption and implement renewable energy technologies. The funding will be made available through the Rural Energy for America Program (REAP), which was authorized by the 2008 Farm Bill.

“For the first time in 13 years, imported oil accounts for less than 50% of the oil consumed in America. That is because we are producing more domestically, using more alternative fuels, and using less energy through energy efficiency efforts,” said Agriculture Secretary Tom Vilsack. “Through the REAP program, USDA has partnered with more than 13,000 of America’s farmers, ranchers and rural businesses to save energy and improve their bottom line by installing renewable energy systems and energy efficiency solutions. USDA will continue to help make America more energy efficient, and in doing so, more competitive by encouraging rural small businesses to continue to build renewable energy systems”

The ten grants in nine different states include such alternative energy projects as $80,000 grant to develop on- and off-shore wind projects in Cumberland County, Maine. REAP loan guarantees and grants can be used for renewable energy systems and energy efficiency improvements; and grants for feasibility studies, renewable energy development assistance and energy audits.

Energy, USDA, Wind

Most Corn Acres Since 1937 Expected

Cindy Zimmerman

The last time the United States planted as many corn acres as USDA is predicting for this year, Franklin D. Roosevelt was just entering his second term as president.

It was 1937 when an estimated 97.2 million acres were planted. This year, the USDA Prospective Planting report predicts that corn growers will plant nearly 96 million acres – 95.9 million to be exact. That’s four percent more than last year and nine percent higher than in 2010. Corn acres are expected to increase or stay the same in 40 states, with the biggest increases in Indiana, Iowa, Nebraska, North Dakota and Ohio.

“Even after a difficult growing season last year, farmers harvested a bountiful crop to meet all needs, and it seems that they are on track to break records in 2012,” said National Corn Growers Association President Garry Niemeyer of Illinois. “This report shows that the innovative American farmer understands the increasing global demands of corn for food, feed, fuel and fiber and that they see the importance of meetings those needs.”

The greater acreage could more than make up for the lower grain stocks in USDA’s latest Quarterly Report, also released on Friday. In that summary, USDA says corn stocks are 8% lower than they were a year ago at just over 6 billion bushels. Of that, 3.19 billion bushels are stored on farms, down 6% from last year.

The unseasonably warm weather already this spring has farmers itching to plant, but most in the Midwest are holding off for a few more weeks, just to be safe. Nebraska Corn Board Director of Research Kelly Brunkhorst says farmers in the Cornhusker State are responding to market signals with the investment necessary to meet demand. “That corn is converted to meat, milk and eggs, ethanol, distillers grains, bioplastics and more,” Brunkhorst said. “Corn is the foundation for all of that, so getting the crop in the ground and off to a good start this spring is critical.”

Nebraska farmers planted 9.85 million acres to corn last year – largest acreage since the 1930’s – and they intend to top that by 450,000 this year.

corn, Ethanol, Ethanol News, NCGA, USDA

Check Out the Newly Redesigned Biodiesel.org

If you’re cruising the information superhighway and need the latest biodiesel news or information, check out the redesigned web site of the National Biodiesel Board.

The freshly updated, super-powered biodiesel.org was unveiled in conjunction with National Biodiesel Day, the perfect time to unveil the premier website in the world for the inquisitive on renewable, cleaner burning, job-stimulating biodiesel. A quarter of a million people visit biodiesel.org each year.
One of the most visited sections of the website is the Retail Biodiesel section. NBB contracted with a national leader in mapping technology to make the interface real-time and easy to use for consumers looking for biodiesel stations nationwide.

Other new features include reorganized drop down menus, a streamlined tabbing structure, and prominent social media links.

“Modern web design involves constant upgrades to stay relevant,” said Scott Tremain, IT director for NBB, who designed the new site. “Last time we did a major upgrade was 10 years ago. There are things we’re doing today that would have been cost-prohibitive or impossible 10 years ago, so it was really exciting to delve into this while setting the stage for future transformations of the site.”

From clean typography to updated color schemes, Tremain noted the new site reflects high level trends in web design, moving beyond web 2.0 and featuring a more simplistic design approach with fewer unnecessary design elements.

“It’s uncluttered and visually pleasing while maintaining the rich content throughout the site,” said Doug Whitehead, NBB director of operations. “This website is not about us. It’s about our industry and our members, and most importantly, about the people who use it.”

Biodiesel, NBB

Farm Bill Energy Legislation Introduced

Cindy Zimmerman

Senators Tom Harkin (D-IA), Kent Conrad (D-ND), Amy Klobuchar (D-MN) and Al Franken (D-MN) introduced legislation this week that would reauthorize and fund the primary energy programs included in the current Farm Bill.

The Rural Energy Investment Act would include a mandatory total of $1.275 billion over 5 years to strengthen the biobased markets program, fund the Biorefinery Assistance Program, reauthorize and fund the Rural Energy for America Program (REAP) and the Biomass Research and Development Program.

“We can and we must transition to cleaner, more sustainable energy systems, and rural America will play a crucial role in this transition,” said Sen. Harkin. “As we are formulating the next farm bill, it is even more critical that we include strong programs that encourage production and use of biomass feedstocks for advanced biofuels and biomaterials, as well as assisting farmers and ranchers with adoption of energy efficiency and renewable energy technologies to replace their aging energy systems.”

The Agriculture Energy Coalition (AgEC) says this legislation should serve as a bi-partisan basis for the Energy Title as the Senate begins debate on a new Farm Bill, which is scheduled to expire in September 2012. “Imagine a future in farm country that provides advanced biofuels for cars and trucks, even planes, wind, solar and geothermal power for our homes and schools, cleans the air and water, and vastly improves our national security – this is all happening now and will continue if we stay the course,” said Lloyd Ritter, a co-director of AgEC.

The AgEC includes organizations and companies representing renewable energy and bioproducts stakeholders committed to seeing a strong bi-partisan energy title in the 2012 farm bill.

advanced biofuels, biofuels, biomass, Ethanol, Ethanol News, Government

Senators Introduce Domestic Fuels Act of 2012

Cindy Zimmerman

Senators Amy Klobuchar (D-MN), John Hoeven (R-ND), Roy Blunt (R-MO), and Mike Crapo (R-ID) this week introduced bipartisan legislation that would “help produce more energy, increase competition, promote alternative fuels, provide more consumer choice and lower the cost of fuels at the pump.”

amy klobucharSen. Klobuchar says the Domestic Fuels Act of 2012 would make it easier to market all fuels and give consumers more choice at the pump. “This would cut through red tape and help provide the clear standards needed to increase competition and bring homegrown energy to consumers,” said Klobuchar. “Now is the time to increase domestic production of energy, focus on the homegrown energy solutions that will reduce our dependence on foreign oil, and give consumers choice at the pump.”

The bill would streamline the regulatory process so that all fuels, both traditional and renewable, can be stored and dispensed with common equipment. It also requires the EPA to develop streamlined criteria so that underground tanks can be used to dispense gasoline, diesel, ethanol or some combination of fuels, rather than requiring the use of separate tanks.

Also included in the legislation is liability protection for retailers that meet the streamlined EPA standards, so that they can sell multiple types of fuel with less red tape, providing consumers with more choice and lower fuel prices, and it establishes a new pathway for retailers to ensure that their equipment is safe and legally recognized as compatible to sell new fuels, thereby reducing the cost of entry for many retailers.

The measure is supported by a number of diverse industries and associations, including the Renewable Fuels Association, Growth Energy, American Petroleum Institute, Tesoro Corp., American Fuel and Petrochemical Manufacturers, Petroleum Marketers Association of America, Exxon-Mobile, Association of Convenience Stores, Society of Independent Gasoline Marketers of America, National Association of Truck Stop Operators and Outdoor Power Equipment Institute.

Ethanol, Ethanol News, Government, Growth Energy, Retailers, RFA

Senate Rejects Obama Push to End Oil Subsidies

Cindy Zimmerman

Despite a last minute plea by President Obama, the Senate today rejected a plan to end oil company subsidies.

“Right now, the biggest oil companies are raking in record profits –- profits that go up every time folks pull up into a gas station,” said Obama in a Rose Garden speech this morning. “But on top of these record profits, oil companies are also getting billions a year — billions a year in taxpayer subsidies -– a subsidy that they’ve enjoyed year after year for the last century.”

The president stressed the need for increased domestic oil and gas production, but also for alternative energy. “It also means that we’re going to keep developing more advanced homegrown biofuels, the kinds that are already powering truck fleets across America,” he said. “We’re going to keep investing in clean energy like the wind power and solar power that’s already lighting thousands of homes and creating thousands of jobs.”

Truman Project Fellow and Operation Free Veteran Terron Sims was present at the Rose Garden address (top center in photo) and said he was proud to stand with the President and offer support for the administration’s energy initiatives to reduce dependence on foreign sources of oil. “I’m glad that my Commander in Chief is doing what it takes to make sure we have true energy independence by taking steps to reduce our oil use and increase clean, renewable sources of American energy,” Sims said. “I hope Congress will work with the President on these goals for the sake of America’s security.”

Sims is a former US Army Captain and Iraq War veteran. Operation Free, a campaign of the Truman National Security Project, is a national coalition of US military veterans working to send the message that America’s security relies on ending our addiction to oil and establishing clean, renewable sources of energy.

The attempt to curtail oil company tax breaks was defeated in a Senate filibuster this morning to prevent the legislation from advancing. Republicans against the measure were joined in opposition by Democrats from oil-rich states.

biofuels, Ethanol, Ethanol News, Government, Solar, Wind