Mascoma to Build Cellulosic Ethanol Facility in Michigan

January 4, 2012

With $80 million from the U.S. Department of Energy, Mascoma Corporation, a renewable fuels company based in New Hampshire, will design and construct a commercial-scale hardwood cellulosic ethanol facility in Kinross, Michigan.

Mascoma and the DOE signed an agreement that provides up to $80 million in funding for the facility. These funds are an addition to $20 million previously awarded by the DOE for research and development for this project. The agreement includes a cost-sharing arrangement under which the DOE will contribute to the costs for construction of the facility, and the balance of the construction costs will be funded by Valero Energy Corporation and a grant from the State of Michigan.

The Kinross facility will use Mascoma’s proprietary CBP technology platform, which has been developed by Mascoma over the past five years, to convert hardwood pulpwood into ethanol. Hardwood pulpwood is a selectively harvested, naturally regenerated feedstock and is an underutilized, abundant resource in the surrounding area. Construction of the Kinross facility is anticipated to start in the next three to six months and is expected to be completed by year-end 2013. Kinross Cellulosic Ethanol LLC, a joint venture formed by Mascoma and Valero, will develop and operate the Kinross facility.

“We are excited to apply our proprietary consolidated bioprocessing (CBP) technology platform to produce cellulosic ethanol on a commercial scale and thereby provide a low-cost, sustainable alternative to petroleum-based products,” said Bill Brady, President and CEO of Mascoma.

Cellulosic, Ethanol, Facilities

Wild Weather Big Story in 2011 for Agriculture

Chuck Zimmerman January 4, 2012

Wild weather was the winner for the biggest ag story of 2011 according to our latest ZimmPoll. We asked the question, “What do you think is biggest ag story of 2011?” Wild weather got 40% or the response followed by Record farm land value – 17%; New free trade agreements – 16%; High commodity prices – 16%; Super committee “no”- farm bill – 11% and Record U.S. farm exports at a big fat 0%. Weather, it’s always on the top of a farmer’s mind and with good reason.

Our new ZimmPoll is now live. We’re asking the question, “What do you think of the LightSquared broadband internet proposal?” This is certainly a hotly debated topic with GPS companies and users very concerned over the implications. If you need more information about it you can find lots of resources online here, here and here.

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

ZimmPoll

Two Abengoa Plants Shut Down Temporarily

Cindy Zimmerman January 4, 2012

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.

Company 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 January 4, 2012

The 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 January 3, 2012

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.

In 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 December 30, 2011

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.

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

December 30, 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

December 30, 2011

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 December 29, 2011

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.

In 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.”

The 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

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