Global Biofuels Group Calls Qatar Comments “Self-Serving”

Cindy Zimmerman

Global RFAThe Global Renewable Fuels Alliance (GRFA) is calling comments made this week by a Qatari government advisor about biofuels contributing to world hunger “self-serving.”

At a global grains summit in Turkey on Monday, Quatari food security program advisor Mahendra Shah was quoted as saying, “Biofuels will trigger an increase in agricultural prices. Biofuels will result in another 120 million people hungry, just because we’re growing biofuels.” He cited a study by the Organization of the Petroleum Exporting Countries Fund for International Development (OFID) which claims the use of crops for biofuels is forecast to raise food prices by 30 percent to 50 percent by 2050.

Noting that the report cited was funded by OPEC’s International Development arm, GRFA spokesperson, Bliss Baker said, “This so-called report from 2009 cannot withstand any level of academic scrutiny and is a self serving attempt to distract people from the real impact that energy prices are having on global commodities.”

“Qatar, a key OPEC member and promoter of this report, derives 85% of its export earnings and over 70% of its government revenues from crude oil. Qatar’s agenda is to promote crude oil and discredit alternatives like biofuels,” Baker added.

According to GRFA, there is evidence that demonstrates that the OFID report is wrong, including a 2011 study by the International Energy Agency that says “by 2050, biofuels could provide 27% of total transport fuel” and will “not compromise food security”. The GRFA recently published data showing a clear and direct link between crude oil prices and the UN FAO’s Food Price Index.

Ethanol, Ethanol News, food and fuel, Food prices, International, Oil

USDA Approves Payments for Advanced Biofuels

Cindy Zimmerman

USDAUSDA will make payments to more than 160 energy producers in 41 states “to support and ensure the production and expansion of advanced biofuels.”

“Renewable energy production will create tens of thousands of direct, American jobs; thousands more indirect jobs, and clean electricity to power millions of homes. The payments I am announcing today represent the continuing commitment of the Obama administration to work with producers to provide the biofuel necessary to reduce our nation’s dependence on foreign energy sources,” said Agriculture Secretary Tom Vilsack

The payments are authorized under the Bioenergy Program for Advanced Biofuels (Section 9005 of the 2008 Farm Bill) and are made to eligible producers to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat.

The payments total nearly $80 million and range from a low of just over $1000 for Kaapa Ethanol in Nebraska to a high of nearly $10 million for Hero Bx in Pennsylvania for “biodiesel mechanical.” Some of the bigger payments being awarded include $6.2 million to Renewable Energy Group for biodiesel trans esterification, $4.8 million to Smarter Fuel of Pennsylvania for biodiesel from waste products, $4 million to White Energy in Texas for ethanol, $3.2 million for Louis Dreyfus Agricultural Industries for biodiesel from waste, and $2.6 million to ADM for biodiesel trans esterification.

For a list of all recipients, click here.

Biodiesel, bioenergy, biofuels, Energy, Ethanol, Ethanol News, USDA

Fyda Expands to Include Propane Autogas

Cindy Zimmerman

Fyda Energy Solutions has expanded its alternative fuel service offerings to include propane autogas vehicle conversions, joining the Alliance AutoGas network as the newest certified conversion center. The green technology arm of nationally recognized truck dealership Fyda Freightliner, Fyda Energy Solutions will work with a variety of fleet vehicles in the Northeast—from police cruisers to taxi cabs to cargo vans—to help them run on clean, affordable, American-made autogas.

Fyda Energy Solutions specializes in retrofitting vehicles to run on alternative fuels, as well as providing maintenance support for fleets. The company was formed with the goal of reducing our nation’s dependence on foreign oil, promoting clean air and ultimately supporting the fleet industry with affordable clean fuel options.

“Fyda Energy Solutions recognizes the importance of reducing costs for fleet owners and managers, while also positively impacting national energy security and the environment,” said Fyda Energy Solutions Director of Business Development, Tim Hooker. “As a new partner in the Alliance AutoGas complete program, we’re proud to be part of an innovative solution for cleaner energy that offers great savings for fleets.”

“Fyda Energy Solutions is a leading provider of alternative fuel technologies for the fleet industry, and they will be a vital part of the Alliance mission to run more American fleets on environmentally friendly, affordable autogas,” says Stuart Weidie, president of Alliance AutoGas and founder of industry coalition, Autogas for America. “Saving money on fuel without losing power or range makes autogas a smart choice for fleets—and because it’s domestically produced, it’s also a smart choice for enhancing U.S. energy security.”

Autogas is 90 percent made in America, so fleets running on this clean fuel are doing their part to reduce U.S. dependence on foreign oil. Autogas is $1 less per gallon than gasoline, and the cost of autogas fueling infrastructure and conversions is significantly more affordable compared to other alternative fuels.

Propane

Bill Would Promote Fuel Choice

Cindy Zimmerman

Senators Maria Cantwell (D-WA) and Dick Lugar (R-IN) have introduced a bill that would ensure most new vehicles in the United States are capable of running on a range of domestically produced alternative fuels starting in 2015.

By introducing competition among fuels, the Open Fuels Standard (OFS) Act aims to bring about significant reductions in fuel prices paid by U.S. consumers. Transportation fuel choice could also sharply reduce U.S. dependence on foreign oil and reduce the $200 billion “monopoly premium” the Department of Energy calculates U.S. consumers currently pay to OPEC (Organization of the Petroleum Exporting Countries) and other foreign oil producers each year through excessive petroleum prices. Keeping this money within U.S. borders would sharply cut the U.S. trade deficit, safeguard U.S household income, and provide capital and market incentive for investment in new U.S. energy infrastructure.

“For too long oil has had a monopoly over transportation fuel and American drivers have had no choice but to pay volatile and elevated prices at the pump,” said Cantwell. “Phasing in vehicles that can run on fuels other than petroleum will allow a whole host of new domestic sources of transportation fuel to come online, which should reduce our dangerous overdependence on foreign oil and help keep American dollars here at home. I am encouraged by the broad bipartisan and stakeholder support for the Open Fuels Standard Act which I believe is a recognition that this approach will really help diversify our nation’s energy supply and spur investment and job creation.”

The Open Fuels Standard Act requires that starting in 2015, 50 percent of new vehicles manufactured or sold in the United States be flex fuel capable – meaning able to run on non-petroleum fuels such as domestically-produced ethanol or methanol or other alcohols in addition to, or instead of, petroleum-based fuels. In 2018, 80 percent of new vehicles would need to be flex fuel capable.

Growth Energy CEO Tom Buis said the legislation would help open the market, so that Americans have access to alternative fuels, like ethanol. “If we are ever going to reduce our dependence on foreign oil and allow consumers a fuel choice, we will need an open market. An open market will drive the investment into cellulosic ethanol and other biofuels,” said Buis.

Ethanol, Ethanol News, Government, Growth Energy

Joint Deal to Improve First Generation Ethanol

Cindy Zimmerman

Two companies have signed a joint agreement to develop an improved first generation ethanol process with enhanced performance economics.

The agreement between Codexis and Raizen Energia S.A. announced today focuses on a range of targets, including improving performance of yeasts now used in ethanol production. Codexis is an industrial biotechnology company and Raizen is Brazil’s largest sugar and ethanol producer.

Under the terms of the agreement, Raizen and Codexis will deploy the Codexis CodeEvolver(TM) directed evolution technology platform to improve Raizen’s current process for producing ethanol made from sugar. Raizen produced 600 million gallons of ethanol in 2010. The parties anticipate pilot production at Raizen’s Bonfim mill.

Read more about the partnership here.

Brazil, Ethanol, Ethanol News

GeoGenix Offers Residential Solar Discounts

Cindy Zimmerman

>New Jersey-based GeoGenix, a SunPower Elite dealer, is offering residential solar systems at a reduced price through the “Drive Green for Life” program that was recently announced by Ford and SunPower Corp.

The “Drive Green for Life” program offers buyers of the 2012 Ford Focus Electrica zero-emissions driving experience that allow electric vehicle (EV) drivers to reduce lifetime auto costs and eliminate long-term EV charging costs. The program refers Focus Electric buyers to SunPower Elite Dealers who will install a high-efficiency, 2.5-kW SunPower solar system on their homes for less than $10,000* after state and federal incentives.

“This is an interesting program, because it will help to stimulate further solar market growth, especially here in New Jersey where state incentives are so strong,” said Gaurav Naik, principal at GeoGenix. “Eco-conscious consumers now have yet another reason to install a solar system. We hope that this partnership will increase demand for solar installations and expand our client base through Ford referrals.”

The 2.5 kilowatt rooftop solar system is comprised of the SunPower® E18 Series solar panels that produce an average of 3,000 kilowatt hours of electricity annually. These high-efficiency solar panels generate approximately 50 percent more electricity than conventional panels and utilize a smaller footprint on the roof. The system was sized to accommodate a customer who drives about 1,000 miles per month.

Learn more about GeoGenix in the Domestic Fuel podcast from March.

Electric Vehicles, Solar

Novozymes Supports FuelChoiceNow

Cindy Zimmerman

Novozymes has joined FuelChoiceNow, a coalition announced last week to create more open access to alternative fuels.

Novozymes“The formation of this new coalition proves that momentum is continuing to build behind biofuels. Consumers deserve to have a choice with their fuel and our economy needs the jobs,” said Adam Monroe, President of Novozymes North America. “Novozymes is proud to be working with these forward-thinkers to give consumers more choices when buying a car and filling it up. By freeing our country from costly foreign oil, we are helping consumers and our economy at the same time.”

Novozymes, which specializes in enzymes for converting biomass into biofuels, is one of 22 advanced biofuel and alternative energy companies involved in the coalition, which also includes Abengoa Bioenergy, Battery Ventures, Propel Fuels, and Qteros.

advanced biofuels, Cellulosic, Ethanol, Ethanol News

DOE Finalizes Cellulosic Ethanol Loan Guarantee

Cindy Zimmerman

The Department of Energy has finalized a $105 million loan guarantee to support the development of one of the nation’s first commercial-scale cellulosic ethanol plants.

POETThe loan guarantee and financing allows POET to construct Project LIBERTY, a 25 million-gallon-per-year cellulosic ethanol plant in Emmetsburg, Iowa.

“This project represents a pioneering effort to make broad scale deployment of cellulose ethanol a reality,” said Secretary of Energy Chu making the announcement on Friday. ”Producing the next generation of biofuels can not only reduce America’s oil dependency, it can also create vast new economic opportunities for rural Americans.”

POET estimates the project will fund approximately 200 construction jobs and 40 permanent jobs and generate around $14 million in new revenue to area farmers who will provide the corn crop residue.

The first commercial cellulosic ethanol plants will demonstrate that the 1 billion tons of biomass available in the United States can be a major force in overcoming the country’s reliance on foreign oil, POET CEO Jeff Broin said. “Financing has been a key hurdle to getting the first commercial-scale cellulosic ethanol plant up and running. We’re excited to show the world the tangible results of a decade of work by our researchers and engineers,” said Broin.

Project LIBERTY will be located next to the existing grain ethanol plant, POET Biorefining Emmetsburg, and will share roads, land and other infrastructure. Additionally, the cellulosic plant will produce biogas as a co-product, enough to completely power itself and eliminate the majority of the natural gas required to operate the adjacent grain ethanol plant.

Cellulosic, Ethanol, Government, POET

Ethanol Group Says Changing RFS is “Bad Policy”

Cindy Zimmerman

Legislation reportedly being drafted that would change the Renewable Fuels Standard would be a bad policy move, according to the Renewable Fuels Association (RFA).

Renewable Fuels Association LogoReuters reported this week that a bill is being drafted in the House that would “reduce the federal mandate to use fuel ethanol when corn supplies are tight” in an effort to keep livestock feed prices lower, according to a congressional staff member. Rep. Bob Goodlatte (R-VA) and Rep. Jim Costa (D-CA) are named as likely sponsors of the legislation.

“Seeking to relegislate the RFS in this manner would do nothing to address the concerns raised by the livestock constituents of Reps. Goodlatee and Costa,” said RFA President and CEO Bob Dinneen. “Research clearly demonstrates that implementing an RFS waiver trigger based on the stocks-to-use ratio will not have the effects on corn prices desired by livestock and poultry interests, nor will it mean more corn is immediately available for feed use. Rather than knee-jerk policy reactions, Congress should maintain the integrity of the RFS to help drive job creation and wean America from its addiction to foreign oil.”

Dinneen also cautioned that if this effort were to be successful, the loss of ethanol in the fuel supply lead to increased prices at the pump. “In fact, given the disproportionate impact on food pricing exerted by energy and fuel prices, raising gas prices by reducing ethanol use would exacerbate concerns with rising food prices,” said Dinneen. “This is simply the wrong policy to address corn supply concerns.”

Ethanol, Ethanol News, RFA

Re-Opened Biodiesel Plant is a “Jewel”

Cindy Zimmerman

The Renewable Energy Group (REG) just hated to see the 30 million gallon capacity biodiesel plant standing idle near Albert Lea, Minnesota for the past three years, so the company decided to do something about it.

“It’s a great plant that needed to run,” Brad Albin, REG Vice President of Manufacturing, said at the plant’s re-opening on Monday. “It had no where to go but was a jewel just sitting here ready to run.”

REG originally built the plant in 2005 for SoyMor, which ran it for three years before shutting down in 2008. “We’re very lucky to have brought this plant up within about four weeks,” said Albin. “It was actually the largest 30 million gallon plant years ago and what’s great about it is that it’s highly efficient and we’ve already got it up to just about 90% throughput.”

Since Minnesota has a state requirement for biodiesel blends, Albin says it was important to get the plant back on line. “Minnesota is a great user of biodiesel so it was just natural that we build it, we’d run it, get back and get it going again,” he said of the plant which uses soybean oil as its primary feedstock.

Listen to or download interview with Brad Albin here. REG VP Brad Albin

REG Albert Lea Biodiesel Plant Photo Album

Audio, Biodiesel, REG, Soybeans