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

What Do You Think Is Biggest Ag Story Of 2011

Chuck Zimmerman

It looks like beef wins in our latest ZimmPoll. We asked the question, “What is your Christmas/Holiday dinner entree?” Beef got 34% of the vote followed by Pork – Ham/Other cut at 27%, then Turkey at 24%, then Lobster and Wild game each got 7% and Fish at 1%. I guess you normally only have one at a time but I like them all!

Our new ZimmPoll is now live. We’re asking the question, “What do you think is biggest ag story of 2011?” There were a lot of big ag stories so we had to pick a few that stood out for us. Let us know what you think.

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

ZimmPoll

New Research Could Lead to Cheaper Fuel Cells

Fuel cells can create electricity that produces very little or even no pollution. In the future, fuel cells are expected to power electric vehicles and replace batteries, among other things. However, fuel cells are expensive.

Now researchers at Aalto University in Finland have developed a new and significantly cheaper method of manufacturing fuel cells. Using atomic layer deposition (ALD), the researchers are making cells that incorporate 60 percent less catalyst material than would normally be required. The study is published in the Journal of Physical Chemistry.

“This is a significant discovery, because researchers have not been able to achieve savings of this magnitude before with materials that are commercially available,” says Docent Tanja Kallio of Aalto University.

In a fuel cell, chemical processes must be sped up by using a catalyst. The high price of catalysts is one of the biggest hurdles to the wide adoption of fuel cells at the moment.

The most commonly used fuel cells cover anode with expensive noble metal powder which reacts well with the fuel. By using the Aalto University researchers’ ALD method, this cover can be much thinner and more even than before which lowers costs and increases quality.

With this study, researchers are developing better alcohol fuel cells using methanol or ethanol as their fuel. It is easier to handle and store alcohols than commonly used hydrogen. In alcohol fuel cells, it is also possible to use palladium as a catalyst. The most common catalyst for hydrogen fuel cells is platinum, which is twice as expensive as palladium. This means that alcohol fuel cells and palladium will bring a more economical product to the market.

These results are based on preliminary testing with fuel cell anodes using a palladium catalyst. Commercial production could start in five to ten years.

Ethanol, Research

Iowa Ethanol Production Up in 2011

Iowa’s ethanol production increased slightly this year; however, the rate of annual growth slowed as the domestic E10 market became saturated, according to the Iowa Renewable Fuels Association.

Iowa has 41 ethanol refineries that produced 3.7 billion gallons in 2011, up from 3.5 billion gallons in 2010.  This represents 27 percent of the estimated 13.8 billion gallons of nationwide ethanol production.
Iowa RFA
“2011 was certainly a good year for Iowa ethanol producers with increased production and profitability,” said IRFA Executive Director Monte Shaw. “However, we relied on export markets for growth. We’re also facing the expiration of ethanol’s tax credit. Those factors place a premium on pushing the rapid commercialization of E15. Higher blends like E15 are the only way to guarantee increased ethanol production in the future and the jobs and foreign oil displacement that comes with it. We are waiting for final federal approvals, but Iowa will be a leader in E15.”

Ethanol, Production

Biodiesel Industry Pleased with New RFS Targets

Cindy Zimmerman

The National Biodiesel Board is pleased with the increase in biomass-based diesel requirements for 2012 under the Renewable Fuel Standard (RFS2) finalized today by the Environmental Protection Agency (EPA).

The 2012 rule raises the Biomass-based Diesel program to 1 billion gallons, up from 800 million gallons this year. According to the latest EPA figures, the biodiesel industry had produced some 908 million gallons through the end of November, exceeding the 2011 requirement with one month of production remaining.

“This industry has shown without a doubt that it can meet and exceed the goals of this program in a sustainable way, with a diverse mix of feedstocks,” said Anne Steckel, vice president of federal affairs at NBB, the trade association for the U.S. biodiesel industry. “Our industry has plants in nearly every state in the country that are hiring new employees and ramping up production, in part because of the demand that this policy creates. As the only EPA-designated advanced biofuel being produced on a commercial scale nationwide, we look forward to continued growth in 2012.”

Steckel also urged the administration to issue a final rule for 2013 volumes raising the Biomass-based Diesel requirement to 1.28 billion gallons, as the EPA proposed earlier this year. The EPA on Tuesday postponed finalizing the 2013 volume, saying it needs more time for review.

Biodiesel makes up the vast majority of the Biomass-based Diesel program under the RFS. Because it also qualifies as an advanced biofuel under the program – with greenhouse gas emission reductions of 57 percent to 86 percent – biodiesel is also eligible to help meet general advanced biofuels requirements under the program.

Biodiesel, NBB

EPA Finalizes 2012 Renewable Fuel Standards

Cindy Zimmerman

After nearly a month delay, the Environmental Protection Agency (EPA) today released final Renewable Fuel Standard (RFS2) requirements for 2012.

The final 2012 overall volumes and standards are:

Biomass-based diesel (1.0 billion gallons; 0.91 percent)
Advanced biofuels (2.0 billion gallons; 1.21 percent)
Cellulosic biofuels (8.65 million gallons; 0.006 percent)
Total renewable fuels (15.2 billion gallons; 9.23 percent)

The percentage standards for four fuel categories are required by the Energy Independence and Security Act of 2007 (EISA).

advanced biofuels, Biodiesel, Cellulosic, Ethanol, Ethanol News, Government

Top Ethanol Stories of 2011

Cindy Zimmerman

RFAEthanol industry developments in 2011 have set the stage for a new era. The Renewable Fuels Association has identified five top stories for the ethanol world from 2011 that will change the future.

They are:

1. EPA approval of 15 percent ethanol for use in 2001 and newer vehicles
2. The end of the blenders tax credit and secondary tariff on ethanol imports
3. Surge in U.S. ethanol exports
4. New strides in advanced and cellulosic ethanol development
5. Emergence of the integrated biorefinery model

Ethanol Report PodcastIn this edition of “The Ethanol Report,” Renewable Fuels Association president and CEO Bob Dinneen comments on the year in review and some of the top ethanol stories of 2011.

Listen to or download the Ethanol Report here: Ethanol Report on 2011 in Review

advanced biofuels, Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Biodiesel Consulting Group Expands

Cindy Zimmerman

leeBiodiesel consulting firm Lee Enterprises of Little Rock, Ark., has announced plans for expansion in 2012 into ethanol, biomass, wind, solar and geothermal, and the addition of consultants and strategic partners.

“We are currently the world’s largest biodiesel consulting group, and most of our consultants and strategic partners are already very involved in the other alternative fuels,” said principal owner Wayne Lee.

leeLee notes that the group’s current appraiser, environmental expert, QA experts, and grant writers have backgrounds and experience in these areas, and that the group’s larger strategic partners – Stoel Rives (legal), Christianson & Associates (accounting), IMA of Kansas (insurance), FCStone Merchant Services (feedstock financing), and Executive Leadership Solutions (staffing) – already have very significant presences in these other alternative fuels sectors. “Our goal over the past several years has been to put together a top notch team of the best biodiesel experts in the world”, says Lee. “I am quite satisfied that we have accomplished that goal and now address almost every need in the biodiesel sector.”

“I am a firm believer in biodiesel as the best alternative to diesel fuels and I strongly believe in its future” says Lee. “But, the overall solution to the world’s oil dependency rests with all the alternative fuels working together”. As a result, Lee wants his consulting group to be able to provide the same depth of assistance for all kinds of alternative fuels as they currently provide for biodiesel.

Biodiesel, biomass, Ethanol, Ethanol News, Geothermal, Solar, Wind

Post Office Goes Green for the Holidays

Cindy Zimmerman

uspsThe U.S. Postal Service may be in the red but they’ve been promoting going green this holiday season.

“The Postal Service is one of the greenest mailing and shipping companies in the world,” said Thomas G. Day, chief sustainability officer. The eco-friendly options offered by USPS include mailing and shipping supplies, free package pickup and holiday cards printed on recycled paper available in 2,000 Post Offices.

“We have a ‘fleet of feet’ delivering mail the greenest way possible, by walking,” Day added. “Nearly 9,000 of our carriers will be delivering holiday mail on foot this season. And we also have nearly 80,000 ‘park and loop’ routes, where carriers will drive vehicles from the Post Office to neighborhoods and then deliver those holiday packages and cards on foot.”

The Postal Service will have delivered a total of 16.5 billion cards, letters and packages between Thanksgiving and Christmas Eve using various alternative fuel vehicles in the largest civilian fleet in the world of 215,000 vehicles. Alternatives utilized by USPS include three-wheeled electric vehicles with zero gas emissions that operate at a cost of only 2 cents a mile, as well as vehicles that can operate on compressed natural gas, propane, ethanol, and fuel cell. There’s also 30 large all-electric trucks delivering holiday mail in Manhattan.

Electric Vehicles, Environment, Ethanol, Ethanol News, Natural Gas, Propane