Life Cycle Analysis Favorable for Biodiesel

Cindy Zimmerman

Comparing the life cycle analysis of soy products to petroleum products shows clear environmental advantages on the soybean side.

Early last year, the United Soybean Board released the findings of a life cycle analysis report that compared several different soy-based products with the same products made from petroleum sources, including soy biodiesel. The peer-reviewed study was done by Omni Tech International, a consulting firm specializing in renewable and biobased products. The study included a review of soy-based biofuels, plastics, lubricants and coatings.

Omni Tech consultant Jim Pollack says they found out that soybean yields increase 12% in the last ten years, energy to grow soybeans was down 20%, soybean crushing plants were using 45% less energy to make soybean oil. “When the oil was sent over to the biodiesel plants, they were using 35% less energy,” Pollack said. “So, collectively, all of these improvements have resulted in a very favorable life cycle profile for soy biodiesel.”

Pollack was telling that story at the recent National Association of Farm Broadcasting annual meeting. Listen to my interview with him here: Jim Pollack with Omni Tech International

Audio, Biodiesel, Soybeans

REPREVE Renewables Hosts Field Day

repreveREPREVE Renewables, LLC, a leader in biomass energy solutions, will hold its second annual Freedom Giant Miscanthus Field Day, at their farm operations in Soperton, GA on Jan. 10-11, 2012. This year, it is a two-day event.

With an exclusive license to commercialize Freedom giant miscanthus, the company will have live field demonstrations and presentations by industry experts for growers, landowners and end-users.

A tentative itenerary includes industry speakers, research presentations, equipment displays and more. The Freedom Field Day is open to the public but advance registration is required.

biomass

Iowa Biodiesel Interests Plan Radio Ads for Basketball

Cindy Zimmerman

Iowa’s biodiesel leaders are unveiling new radio ads for Iowa State/Iowa men’s basketball games to promote biodiesel to consumers.

“These radio ads are designed to encourage Iowans to learn more about the industry’s starting line-up of performance, quality, support for Iowa agriculture, green-job creation, as well as price and availability,” said Jon Scharingson, Director, Sales and Marketing at Renewable Energy Group® (REG), part of the group coordinating the ads. “Whether you’re a Hawkeye or a Cyclone, we want Iowa diesel engine operators to ask for biodiesel blends from their local petroleum marketer whether it is at the retail pump or for delivery to their business, fleet, or farm.”

In addition to REG, the radio ads are being sponsored by the Iowa Renewable Fuels Association, the Iowa Soybean Association and the Iowa Biodiesel Board to encourage consumers to ask for biodiesel blends from their local fuel retailer, coop or petroleum marketer. The ads are partially funded by the soybean check-off.

According to the Iowa Department of Weight and Measures, a five percent biodiesel blend (B5) has the same performance and quality attributes as straight diesel fuel. “B5 biodiesel blends can perform in any diesel engine in any season,” said Scharingson. “We urge consumers to ask for this home-grown, Iowa-made fuel from any petroleum marketer in Iowa.”

Biodiesel, REG, Soybeans

Iowa Already Sets E85 All-Time Sales Record

Iowa RFAThird quarter sales reports of E85 in Iowa indicate that 2011 sales have already exceeded total sales during 2010, according to the Iowa Renewable Fuels Association.

As of September, Iowa retailers sold 9.8 million gallons of E85 during the first nine months of 2011, exceeding the 9.3 million total gallons sold last year. The Iowa Department of Revenue says sales increased 20 percent during the third quarter of 2011 (July to September) compared to the same period last year.

Currently, Iowa has 158 retail outlets offering E85.

Retailers wishing to offer E85 may be eligible for a state grant to offset some of the equipment and installation costs. The Renewable Fuels Infrastructure Board is now accepting applications or retailers can contact the Iowa Department of Agriculture.

E85, Ethanol, Ethanol News

POET Continues to Cut Water Use at Ethanol Plants

POET is now more than 75 percent of the way to achieving its water reduction goal of one billion gallons annually by 2015 at the company’s ethanol plants.

This year POET reduced water use by more than 770 million gallons compared to 2009 by using the company’s Total Water Recovery System at their 18th ethanol production facility, POET Biorefining in Chancellor, South Dakota.

“We’ve made reducing water use a priority at our plants, and it shows,” POET CEO Jeff Broin said. “I’m confident that we can reach our overall water use goal.”

Eighteen of POET’s 26 ethanol plants now have Total Water Recovery Systems under the company’s “Ingreenuity” initiative that was instituted in March 2010.

Ethanol, Facilities, POET, water

Growth Energy Adds to Marketing Development Team

Growth EnergyMike O’Brien has joined Growth Energy as vice president of marketing development. He will help develop the ethanol market by assisting fuel retailers with delivering higher blends of ethanol to consumers through increased flex fuel pumps.

Growth Energy continues to advocate for opening the fuels market to ethanol through infrastructure investment. Their market development team will educate consumers about the benefits of ethanol and help retailers install flex fuel pumps capable of dispensing mid- to high-level blends of ethanol.

Before joining Growth Energy, O’Brien was global director of marketing and communications for Draka Oil & Gas. O’Brien also served in global communications for Cargill Dow/NatureWorks focusing on food retail adoption of the first commercial scale bio-polymer made entirely from corn.

Ethanol, Growth Energy

US and Brazil Spar Over Ethanol Trade Policy

Cindy Zimmerman

Brazilian and U.S. ethanol interests are challenging each other over ethanol trade policy.

The U.S./Brazil Council and the U.S. Chamber of Commerce wrote a joint letter to Congress last week asking that the U.S. secondary tariff on imported ethanol be allowed to expire as scheduled at the end of the year, together with the Volumetric Ethanol Excise Tax Credit (VEETC).

UNICAMeanwhile, Congressman Charles Rangel (D-NY) introduced legislation last Friday that would extend the 54-cent per gallon ethanol import tariff until the end of 2014. “My legislation would preserve duty-free ethanol for the U.S. as well as ensuring that the gains achieved for the Caribbean remain intact,” stated Rangel.

The legislation, which is not backed by the U.S. ethanol industry, was immediately condemned by the Brazilian Sugarcane Industry Association (UNICA), saying that “certain parties who benefit from the current, anti-competitive arrangement and their allies in Congress are trying to change the rules by making the tariff a true trade barrier rather than a subsidy offset.”

“As the world’s top producers, the United States and Brazil need to lead by example in creating a free market for clean, renewable fuel,” said Leticia Phillips, UNICA’s Representative in North America. “That means putting an end to trade distorting tariffs on ethanol.”

RFAToday, the Renewable Fuels Association (RFA) in turn challenged Brazil’s commitment to free trade.

RFA president and CEO Bob Dinneen wrote his own letter to the U.S./Brazil Council and the U.S. Chamber of Commerce. “Please know that while we share your desire for the removal of trade distorting practices between the U.S. and Brazil, we are very concerned about the Council’s singular and biased focus on U.S. ethanol policy, and its failure to address more timely recent trade distorting practices engaged in by Brazil,” wrote Dinneen, pointing out specific actions taken by Brazil that limit U.S. access to that market.

“Recently, the Brazil government reduced the volume of ethanol that can be blended in fuel from 25% to 20%. As a result of this mandated reduction in blend volumes, U.S. exports of ethanol to Brazil are being dramatically reduced from levels that would have otherwise occurred had Brazil left the mandate at 25%,” said Dinneen.

“Second, while your letter to Congress is correct to state that Brazil’s 20% import tariff has been suspended, you fail to further explain that this suspension was only on a temporary basis. While Brazil’s Chamber of Foreign Trade (CAMEX) did indeed reduce its tariff in April of 2010, the temporary suspension is scheduled to expire one day after the U.S. tariff is set to expire,” Dinneen added, noting that the tariff reduction instituted in April 2010 is scheduled to end the day after the U.S. tariff is set to expire at the end of this month.

Read the RFA letter here.

Brazil, Ethanol, Ethanol News, RFA

New Ethanol Production Record Set

Cindy Zimmerman

Ethanol production hit an all time high last week, according to the latest figures from the Energy Information Administration.

eiaFor the week ending December 2, ethanol production averaged 954,000 barrels per day (b/d) – or 40.068 million gallons daily, which is 24,000 barrels more than the previous week and a new record. Getting close to the end of the year now, the four week average for ethanol production stood at 929,000 b/d, which translates to an annualized rate of 14.25 billion gallons.

Gasoline demand for the week averaged 360 million gallons daily. Expressed as a percentage of daily gasoline demand, daily ethanol production was 11.63%.

Ethanol, Ethanol News

Verenium Markets Enzyme for Biodiesel Production

Cindy Zimmerman

VereniumVerenium Corporation is now marketing its successful Purifine® phospholipase C (PLC) enzyme product for use in the pretreatment of oil for biodiesel production. The Purifine® PLC enzyme is designed to improve yields and overall economics of edible oil and biodiesel production.

“Since the initial launch of our Purifine® PLC enzymatic degumming process, we have seen rapid adoption and success within the edible oil market, and are pleased to now offer an enzymatic degumming solution for the production of biodiesel,” said James Levine, President and Chief Executive Officer at Verenium. “When compared to traditional degumming processes, our Purifine® PLC enzyme enables a high yield of oil while at the same time efficiently removing phospholipid impurities. Purifine® PLC can also be applied to replace chemical or crude refining, making for a much ‘greener’ process.”

Verenium began marketing and selling Purifine® PLC in 2008 for processing of edible oils and estimates the addressable global market for Purifine® PLC in production of edible oils and biodiesel to be approximately $350 million annually. The Company expects its first customer applying the enzyme for biodiesel production, engineered and implemented by Alfa Laval, to be fully operational in the first half of 2012.

Biodiesel

Petroleum Equipment Group Joins E85 Coalition

Cindy Zimmerman

The Petroleum Equipment Institute (PEI) has joined the Coalition for E85 – a group of retailers, producers, equipment manufacturers and other supporters of E85 fuel.

PEI executive vice president Robert Renkes says the goal of the Coalition is to protect the investments of 2,500 small businesses and stop a multimillion-dollar tax hike on consumers. “Fuel marketers, equipment manufacturers and the motoring public have invested a significant amount of money in building the E85 infrastructure and flex-fueled vehicles,” said Renkes. “We must not abandon E85 this close to self-sustainability.”

According to the Energy Information Administration, Flexible Fuel Vehicles (FFVs) capable of running on up to 85% ethanol fuel represent approximately 98 percent of all the alternative fuel vehicles operating on the nation’s highways. “E85 represents a form of liquid transportation fuel that is growing in use and has an infrastructure investment cost similar to unleaded gasoline,” said Renkes. “Following the lead of the Congress and several recent presidents, many of our members have committed to the production of E85 fueling equipment, and we call on the Congress and Obama Administration to maintain the small incentives provided to advance the sale of E85.”

Currently, other alternative fuels, such as compressed natural gas, propane and hydrogen, receive a $0.50 per gallon tax credit as part of the Alternative Fuel Credit and the Coalition believes E85 should be included as well.

E85, Ethanol, Ethanol News, Flex Fuel Vehicles