Broin Steps Down as CEO of POET

Cindy Zimmerman

The founder of the country’s largest ethanol company is stepping down as CEO.

POET founder Jeff Broin will continue managing and leading the company’s board as Executive Chairman, while Jeff Lautt has been named CEO. Lautt has been with POET since 2005, serving as President of the company for the past year.

In stepping down as CEO, Broin says he wants to spend more time with his family and take on new challenges. “I will continue to be involved in strategic direction for the company as Executive Chairman of the Board, and leave the day-to-day operations to our very capable management team. I would not have done this had I not been convinced that the company would be in good hands. Under the leadership of Jeff Lautt and the entire management team at POET, I have confidence that the company will continue to lead the industry into the future.” Broin is married and has three children. In his more than two decades of leadership, POET has grown from 1 million gallons of ethanol that first year to an annual capacity in excess of 1.6 billion gallons.

In addition to serving as Executive Chairman of POET’s Board of Directors, Broin will continue to speak out on behalf of ethanol and agriculture as co-chairman of Growth Energy. He also intends to spend more time guiding the activities of his newly created foundation, “Teach a Man to Fish” which will spread the power of agriculture throughout the developing world.

“For the past 25 years, Jeff Broin has led POET and the entire ethanol industry,” said Lautt. “He has grown POET from one small plant to a leadership position in the global renewable fuels industry. With the help of the entire team at POET, I will do my best to continue building on the success the company has achieved.”

Prior to being named president of POET in March 2011, Lautt served as Executive Vice President of Corporate Operations where he was responsible for all operational business units within the company. Lautt spent fourteen years in the emergency vehicle industry where he served as President of a Midwestern-based fire truck manufacturing company before joining POET. Lautt has a Bachelor of Science degree in Business and Engineering from South Dakota State University.

Ethanol, Growth Energy, POET

Loss of EU Market Would be Costly for Biodiesel

The European Union’s renewable energy policy would lower U.S. soybean prices, according to a checkoff study, funded by the United Soybean Board. The study shows the EU’s Renewable Energy Directive, which currently excludes biodiesel made from U.S. soybean oil in renewable energy quotas, could decrease U.S. soybean prices by as much as 35 cents per bushel. If left unresolved the regulation could cost U.S. soybean farmers more than $1.1 billion a year.usb

The checkoff maintains that the EU’s policy unfairly singles out biodiesel made from U.S. soy. It requires all transportation fuels used there to include 10 percent renewable energy. To qualify as a renewable fuel – it must reduce greenhouse gas emissions by at least 35 percent. While soy checkoff-funded research shows biodiesel made from U.S. soy reduces greenhouse gas emissions by between 39 percent for U.S. soybeans shipped to and crushed in Europe, and 49 percent for processed U.S. soy biodiesel shipped to Europe, the Europeans claim biodiesel made from U.S. soy only reduces greenhouse gas emissions by 31 percent.

The American Soybean Association is working with the U.S. government to reach an agreement with the EU to include biodiesel made from U.S. soy in the policy. The government is also issuing certificates for all soybean shipments verifying that they comply with U.S. conservation and laws and regulations.

“The EU is the second-largest market for U.S. soybeans, and that market is at risk due to this regulation,” says USB Immediate Past Chair Marc Curtis, a soybean farmer from Leland, Miss. “We can use this study to show allied organizations and the U.S. government how much of an impact this regulation would have on U.S. soybean farmers. It will also give the U.S. government facts to demonstrate to the European Commission that the regulation needs to be based on sound science.”

Biodiesel, Soybeans

Navy Opens E85 Station in Hawaii

Joanna Schroeder

The first of three E85 stations owned and operated by the Navy has opened. The Naval Facilities Engineering Command (NAVFAC) is using the station, located at the Joint Base Pearl Harbor-Hickam (JBPHH) to fuel its fleet of flex-fuel vehicles. Ray Mabus, the Secretary of the Navy, has announced initiatives to reduce petroleum consumption by 50 percent before 2015. In addition, President Obama has called for a 28 percent reduction in greenhouse gases by 2020.

“The addition of this E85 fueling station to our fueling options directly addresses the energy mandates set forth by the Secretary of the Navy and the President,” said Capt. John Coronado, commanding officer, NAVFAC Hawaii. “We have over one thousand E85-capable vehicles at JBPHH that will be able to take full advantage of this station and the two others to be installed.”

It took a bit over a year for the vision to become reality. In September 2010, NAVFAC Engineering Service Center (ESC) awarded a $315,767 contract to the Honolulu office of Innovative Technical Solutions, Inc, to develop and construct the 10,000 gallon, above ground fueling station. With assistance from NAVFAC and a few other departments, the E85 station came online in late March.

The Navy now has two operational E85 stations open for government-use only. They are currently evaluating potential sites for the next two planned flex-fuel stations.

E85, Ethanol

Oregon Governor Tours ZeaChem Biorefinery

Cindy Zimmerman

Oregon Governor John Kitzhaber took a tour of the ZeaChem 250,000 gallon-per-year biorefinery in Boardman Monday as the company announced it has begun construction on the Department of Energy-funded project for the production of cellulosic ethanol.

Earlier this year, the company announced the start of operations of the core facility for the production of intermediate chemicals acetic acid and ethyl acetate.

“ZeaChem is exactly the type of innovative company that is driving Oregon’s economy and revitalizing our rural communities,” said Governor Kitzhaber. “This facility and the planned commercial plant are creating quality jobs, while producing sustainable alternatives to fossil-fuel products by using local resources.”

“We welcome Governor Kitzhaber to our Boardman biorefinery and appreciate the tremendous support we’ve received from his office, the state of Oregon and the DOE during the construction of our plant,” said Jim Imbler, president and chief executive officer of ZeaChem. “Building the cellulosic ethanol capacity on to our core technology is a significant milestone as we ramp up to commercial production of advanced biofuels and bio-based chemicals.”

ZeaChem’s proprietary core technology produces intermediate chemicals acetic acid and ethyl acetate, both high-value products for applications including paints, lacquers and solvents. The DOE project adds the capacity to use cellulosic biomass on the front end and convert ethyl acetate into ethanol on the back end. It is supported by a $25 million cooperative agreement from the DOE. The integrated biorefinery will begin cellulosic ethanol production in 2012.

advanced biofuels, Cellulosic, Ethanol, Ethanol News, Facilities

USDA Explores Alternative Energy at Airports

Joanna Schroeder

There have been a few companies that are exploring growing bioenergy crops on land owned by airports. Now the U.S. Department of Agriculture (USDA) is in the game. The division of Animal and Plant Health Inspection Service (APHIS) is looking at the potential for alternative energy production at airports in a published article, “Airports Offer Unrealized Potential for Alternative Energy Production.” The article, published in Environmental Management, states that airports may want to consider converting land to alternative fuels where it is economically and environmentally beneficial.

Ag Secretary Tom Vilsack, an avid supporter of alternative energy said of the findings, “Some available grasslands at airports have the potential to spur the type of innovation we need to build American-made, homegrown biofuels and biobased products that will help break our dependence on foreign oil and move our nation toward a clean energy economy.”

Vilsack also said converting grasslands at airports to alternative energy, whether it be biofuel, wind or solar production, not only provides more environmentally sound energy sources for the county, but “may also increase revenue for airports and reduce the local abundance of potentially hazardous wildlife to aircraft.”

Many of us remember the plane that went down in the Hudson due to birds hitting the plane (i.e. getting into the engines), sparking a conversation about environmental responsibility versus air safety. Researchers at the National Wildlife Research Center (NWRC) note that many airport properties are already managed to reduce wildlife abundance and habitat quality as part of efforts to avoid wildlife collisions with aircraft.

Yet not all energy crops will prove to be equal on managing wildlife. NWA says that once biofuel crops are identified for airport use demonstrating low wildlife-strike risks compared to existing airport landcovers, converting grasslands could become a revenue generator.

Federally obligated airports have restrictions on how land may be used but the Federal Aviation Administration (FAA) has said it will work with airports interested in pursuing alternative energy.

advanced biofuels, bioenergy, Research

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