Two Abengoa Plants Shut Down Temporarily

Cindy Zimmerman

Abengoa Bioenergy is starting 2012 by shutting down production indefinitely at the company’s two smallest ethanol plants, located in Portales, New Mexico and Colwich, Kansas.

AbengoaCompany officials say the plant closures are temporary and due to current depressed market conditions for ethanol. The two plants amount to 55 million gallons per year of production.

Abengoa is a major biofuels producer in Europe the United States and Brazil. The company has a total of six ethanol plants in the United States, with two cellulosic ethanol facilities planned for York, Neb., and Hugoton, Kan. Abengoa Executive Vice President Chris Standlee serves as chairman of the Renewable Fuels Association.

Ethanol, Ethanol News, RFA

Top Two Iowa Winners Support Renewable Fuels

Cindy Zimmerman

IRFA romney santorumThe two Republican presidential candidates who topped the Iowa Caucus in a virtual dead heat Tuesday night are both considered to be supporters of renewable fuels.

According to the Iowans Fueled with Pride Iowa Caucus Voters Guide, Mitt Romney and Rick Santorum were two of four candidates who expressed support for major renewable energy issues, including the Renewable Fuels Standard. The guide shows the winners also support a fair and equitable energy tax policy; the attempt to ban E15; and consumer fueling choice through programs to increase the number flexible fuel vehicles (FFVs)and blender pumps in the nation. The other two candidates who scored well in all those categories were Newt Gingrich and President Obama.

Ron Paul, Michelle Bachman and Rick Perry all were opposed to the RFS and increasing FFVs and blender pumps, while only Rick Perry was against E15 and a “fair and equitable energy tax policy” that would “create a level playing field for energy taxes” by revising the permanent tax benefits enjoyed by the petroleum industry.

The voter guide was mailed to approximately 10,000 Iowa households with residents who are directly involved in Iowa ethanol refineries and was also promoted to all of Iowa’s 250,000 agricultural households via email, the Internet and social media. An electronic version of the guide can be viewed at: www.IowansFueledwithPride.com.

Ethanol, Ethanol News, Government

GROWMARK History has Roots in Fuel

Cindy Zimmerman

The year was 1927 when the Illinois Farm Supply Company was chartered under the State of Illinois Cooperative Marketing Act of 1923 to be a wholesale distributor of petroleum and lubricant products.

From that humble start in nine Illinois counties, the Illinois Farm Supply Company eventually became the multi-billion dollar, multi-faceted farm cooperative system that is know today as GROWMARK.

growmarkIn honor of the cooperative’s 85th anniversary this year, a new history section has been added to the GROWMARK’s website and the early years especially provide an interesting glimpse into the importance of fuel for farming.

Among the milestones marked in the first years of the cooperative was in 1933 when “The first gasoline blend (10%) with alcohol produced from corn was brought to market to address the corn surplus problem. This was a product ahead of its time and was later withdrawn because of low volume.”

Read more about the GROWMARK history by clicking on the “Our History” tab on www.growmark.com

Ethanol, GROWMARK

Best of 2011 on Domestic Fuel

Cindy Zimmerman

2011 was a pivotal year for the Domestic Fuel industry.

The renewal of the biodiesel tax incentive at the end of 2010 led to record production this year and a renewed optimism for the industry. Meanwhile, the ethanol industry saw the approval of E15 in newer vehicles at the beginning of the year, although it has yet to make it to the pump, and the end of 2011 means the end of the Volumetric Ethanol Excise Tax Credit and associated import tariff. 2011 was also a great year at the races, with NASCAR fueled with 15% American Ethanol.

The most popular renewable news stories on Domestic Fuel this year included:
Newt Gingrich wows IRFA Summit
Future of Ethanol Tax Policy
Renewable Energy surpasses Nuclear

Joule wins WSJ Award
Study Shows E15 OK in Older Vehicles
Royal Wedding Car Runs on E85
Wind Industry takes steps to Protect Wildlife

Traffic was up another 3.5% in 2011 on Domestic Fuel with a total of almost 325,000 unique visitors. We also now have nearly 1700 followers on Twitter (@DomesticFuel). There were over 1320 posts on Domestic Fuel this year, including 140 with audio interviews, podcasts and recorded press conferences. We covered the Iowa Renewable Fuels Summit, National Biodiesel Conference, National Ethanol Conference, Advanced Biofuels Leadership Conference, USDA and EPA Tour of REG, NASCAR STP 300 in Chicago, STP 400 in Kansas City, Iowa Corn Indy 250, Garnett Ethanol Boat Race, Fuel Ethanol Workshop and the RFA Sponsorship of the Sturgis Motorcycle Rally.

As we enter a new Domestic Fuel era, we wish all of our readers, sponsors and friends a healthy, happy, prosperous and blessed new year!

Company Announcement

Iowa Biodiesel Production Sets Record in 2011

2010 was a tough year for Iowa’s biodiesel producers, but the industry roared back to life in 2011 and set a new production record.
Iowa RFA
According to the Iowa Renewable Fuels Association (IRFA), ten of Iowa’s 13 biodiesel plants operated during 2011 and produced a combined 169 million gallons. With plants restarting throughout the year, the rate of biodiesel production in December reached over 250 million gallons (annualized).

Iowa produced 48 million gallons of biodiesel in 2010. The previous record production was 85 million gallons in 2009.

“2011 has been a banner year for Iowa biodiesel,” said IRFA Executive Director Monte Shaw. “The reinstatement of the biodiesel tax credit combined with the renewable fuels standard (RFS) helped demand and Iowa was quick to respond. Yet challenges remain in front of us. Congress will once again allow the biodiesel tax credit to lapse at the end of 2011. With the RFS firmly in place, we do not expect the industry to completely shut down as it did in 2010. But the uncertainty of reinstatement will undoubtedly depress demand. Congress must act quickly in 2012 to extend the tax credit.”

Biodiesel, Production

ESA Renewables Enters Four Solar O&M Agreements

ESA Renewables, (ESA), a leading turnkey solar solutions provider, has entered into separate multi-year operation and maintenance (O&M) contracts with four solar farms in North Carolina.

The four O&M agreements are with:

  • -The Murphy Solar Farm, which is approximately eight acres in size and consists of 4,298 ground-mounted solar panels. The solar installation is located on the grounds of the Martins Creek Elementary School.
  • -The Wingate Solar Farm, also located in Murphy, N.C. which consists of 4,340 solar panels. This solar project has been installed on a tract of land which is approximately seven acres in size.
  • -The Culberson Solar Farm located on approximately five acres which is composed of more than 3,400 solar panels.
  • -The Holiness Solar Farm which consists of 4,242 solar panels and is located on approximately nine acres.

A lead engineer and other O&M technicians will utilize ESA’s proprietary monitoring system which has been installed on each solar array to ensure maximum performance, reduce system downtime, and make informed decisions as to O&M services. ESA’s employees are also factory authorized and qualified to install and service advanced energy’s inverters which were used in the initial construction of the solar farm.

“ESA is proud to have designed and engineered a renewable energy technology that is an ideal O&M solution to maximizing energy generation,” Jeffrey Burkett, president of ESA Renewables. “We look forward to integrating our technology on many other renewable energy power plants in the near future for effective monitoring and control.”

Solar

Federal Judge Finds California LCFS Unconstitutional

Cindy Zimmerman

A Federal District Court judge in Fresno, California has sided with America’s ethanol industry in ruling that the State of California’s Low Carbon Fuel Standard (LCFS) violates the Commerce Clause of the U.S. Constitution and is therefore unconstitutional.

Growth EnergyIn a joint statement, Renewable Fuels Association President and CEO Bob Dinneen and Growth Energy CEO Tom Buis said: “The state of California overreached in creating its low carbon fuel standard by making it unconstitutionally punitive for farmers and ethanol producers outside of the state’s border. With this ruling, it is our hope that the California regulators will come back to the table to work on a thoughtful, fair, and ultimately achievable strategy for improving our environment by incenting the growth and evolution of American renewable fuels.”

RFAThe groups filed their suit on December 24, 2009 and asserted that the California LCFS violates the Commerce Clause by seeking to regulate farming and ethanol production practices in other states. The Commerce Clause specifically forbids state laws that discriminate against out-of-state goods and that regulate out-of-state conduct. With its original filing, the groups noted, “The LCFS imposes excessive burdens on the entire domestic ethanol industry while providing no benefit to Californians. In fact, in disadvantaging low-carbon, domestic ethanol, the LCFS denies the people of California a genuine opportunity to clean their air, create jobs, and strengthen their economic and national security. One state cannot dictate policy for all the others, yet that is precisely what California has aimed to do through a poorly conceived and, frankly, unconstitutional LCFS.”

On this claim the Court found that the LCFS discriminates against out-of-state corn-derived ethanol and impermissibly regulates extraterritorial conduct. As a result, the Court issued an injunction. Judge O’Neill also ruled that CARB failed to establish that there are no alternative methods to advance its goals of reducing GHG emissions to combat global warming.

The ruling allows California to immediately appeal the decision to the U.S. Court of Appeals for the 9th Circuit and the ethanol industry is prepared to defend the decision that the LCFS is unconstitutional in any appeal that may be filed.

Ethanol, Ethanol News, Growth Energy, RFA

Record Biodiesel Production Continues

Nearly 108 million gallons of biomass-based diesel were sold during the month of November, continuing a record year of production, according to figures released by the EPA. Biodiesel makes up the vast majority of the EPA’s biomass-based diesel category under the Renewable Fuel Standard program, representing about 95 percent of the volume this year.
In a news release from the National Biodiesel Board, biodiesel production specifically had reached an all-time high 908 million gallons through the end of November. The previous annual record for biodiesel production was 690 million gallons in 2008.

Biodiesel is produced in nearly every state in the country and is on pace to support more than 39,000 U.S. jobs in 2011 while replacing roughly 1 billion gallons of petroleum diesel. Made from an increasingly diverse mix of resources such as agricultural oils, recycled cooking oil and animal fats, it is the first and only commercial-scale fuel produced across the U.S. to meet the EPA’s definition as an advanced biofuel. Biodiesel can be used in existing diesel engines and meets strict specifications of ASTM D6751.

Biodiesel, NBB, Production

GROWMARK Streamlines Energy Delivery

Cindy Zimmerman

GROWMARK and FS Energy have given a whole new meaning to energy efficiency with the wireless Energy Business System (wEBS) which has streamlined their fuel delivery system.

GROWMARK Information Management Solutions director Keith Milburn says wEBS was developed as a fuel billing solution that makes the record keeping process easier by providing instantaneous information such as fuel type, tank sizes, taxes and credits.

Milburn says they developed wEBS when the fuel business started to get more complicated a few years ago. “We no longer just handle gasoline and diesel,” he said. “We have high sulfur, low sulfur, bio or soy diesel, ethanol blends – and all the relevant taxes have made it very complicated given those combination of blends.”

“There’s two components of wEBS,” Milburn says. “There’s the back office or centralized data set and then the hand held on the truck level.” The back office includes not only customer information, but every tank that each delivery truck services. “The system identifies each tank with a bar code that tells who the customer is, what product types, relevant taxes, discounts, and if there have fuel contracted at a certain price,” Milburn explains. So all the delivery driver has to do is pump the fuel and within minutes the transaction is recorded and an email confirmation is sent to the customer.

Milburn says this “evolution in the energy business” was first introduced as a pilot program in January 2010 with two trucks and it has since grown to incorporate about 95 trucks that essentially function as mobile hot spots to communicate information. And he says the system is continuing to evolve with the technology.

Find out more about the wEBS system in this interview with Keith Milburn here: Keith Milburn Interview

Audio, Biodiesel, Energy, Ethanol, GROWMARK, Oil, Propane

EPA Lowers Cellulosic Ethanol Target

Cindy Zimmerman

Cellulosic ethanol continues to be out of reach for commercial use, according to the latest Renewable Fuels Standard (RFS2) requirements set by the Environmental Protection Agency for 2012.

“EPA has essentially reduced the mandate for cellulosic, recognizing the fact that there aren’t supplies out there to meet it,” said USDA chief economist Joe Glauber.

Back in 2007, Congress set a goal of 500 million gallons of cellulosic ethanol to be produced in 2012, but only a very small fraction of that is now expected to come to fruition with a target of just 8.65 million gallons. “The big question that’s been out there for years is ‘when will cellulosic ethanol become profitable?’ said Glauber. “I don’t think anyone sees that coming anytime soon, although a few of these plants are expected to come on line in the coming year, so we’ll see.”

In order to project cellulosic biofuel production for 2012, EPA tracked the progress of over 100 biofuel production facilities, the methodology of which is clearly outlined in the official 97-page final rule document. Companies that EPA determined were likely to produce significant quantities of cellulosic biofuel in 2012 include (with projected ethanol-equivalent gallons):

KiOR – a Mississippi-based renewable crude oil project (4.8 million)
INEOS Bio of Vero Beach – waste to biofuel (3 million)
Fiberight – a waste-to-biofuel project in Blairstown, IA (2 million)
American Process, KL Energy and ZeaChem for a total of less than a million gallons combined.

EPA noted the importance of setting a cellulosic standard that was realistic, yet still encouraged investment in the technology. “Thus while any standard we set for cellulosic biofuel standard for 2012 will have some uncertainty in terms of actual attainment, our intention is to balance such uncertainty with the objective of promoting growth in the industry.”

EPA has set the “advanced biofuels” target for 2012 at 2 billion gallons, much of that being comprised of imported sugarcane ethanol from Brazil.

Read EPA’s full explanation of the RFS2 requirements justification.

advanced biofuels, Biodiesel, Cellulosic, Ethanol, Ethanol News, USDA