NEC 2027

International Groups Urge Ending Fossil Fuel Subsidies

Cindy Zimmerman

Two international organizations are recommending reform of fossil-fuel subsidies to improve the economy and the environment.

IEAAn analysis by the International Energy Agency (IED) and the Organisation for Economic Co-operation and Development (OECD) found that governments and taxpayers spent about half a trillion dollars last year supporting the production and consumption of fossil fuels and that removing such subsidies would raise national revenues and reduce greenhouse-gas emissions.

oecdOECD and IEA say fossil fuel subsidies “create wasteful use of energy, contribute to price volatility by blurring market signals, encourage fuel smuggling and lower competitiveness of renewables and energy efficient technologies.”

The G20 leaders in 2009 agreed to phase out subsidies that “encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change”. According to the IEA, since that agreement subsidies for fossil fuel globally have increased by $110 billion to $409 billion in 2010 and could reach $660 billion by 2020 despite the G20 countries commitment.

Global RFA“As we strive to develop alternatives to oil we must recognize that alternative fuels are not competing on a level playing field,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance. “These massive multi-billion dollar crude oil subsidies completely outweigh current biofuel incentives and are a serious obstacle to the development of cleaner greener alternatives. Oil has a huge competitive advantage financed by global taxpayers.”

Baker notes that the G20 will meet in France next month and the issue of oil subsidies is on the agenda. “It is time for the G20 to show leadership and reverse this practice of never-ending subsidies to big oil,” Baker said. “It is time to move beyond crude oil and into a world with sustainable alternatives such as biofuels and other renewable forms of energy.”

biofuels, Ethanol News, International, Oil

Proposed Farm Bill Includes Advanced Biofuels

Cindy Zimmerman

Senator Dick Lugar (R-IN) and Rep. Marlin Stutzman (R, IN-3rd) have introduced a farm bill that they say would save $40 billion and includes provisions that support the development of advanced biofuels.

“We offer our bill as a thoughtful option for consideration by the House and Senate Agriculture Committees, as well as the Congressional Deficit Reduction ‘Super’ Committee charged with making real federal spending cuts by the end of the year,” Lugar said of the bill they have entitled “The Rural Economic Farm and Ranch Sustainability and Hunger Act” or REFRESH.

In the energy section, the legislation would “extend the current loan guarantee authority to help demonstrate new technologies, processes, and techniques for production of advanced biofuels and co-products.” It would also reform the Biomass Crop Assistance Program (BCAP) to focus on “demonstrating opportunities for farmers to diversify their income through rearing bioenergy crops and improving techniques and equipment for collecting biomass from the land for delivery to advanced biofuel production.”

The bill would would also reform farm programs, update conservation programs and close nutrition program eligibility loopholes. It also proposes to repeal the mandatory federal sugar program, allowing for market pricing of sugar.

advanced biofuels, biofuels, biomass, Ethanol, Ethanol News, Farming

Next Generation Scientists for Biodiesel Hosts Fall Webinar

Cindy Zimmerman

The National Biodiesel Board is offering students and others interested in the future of advanced biofuels the opportunity to take their renewable fuels education up a notch with the Next Generation Scientists for Biodiesel (NGSB) Fall Webinar on Oct. 18.

The webinar will feature the very latest on biodiesel research from two university students who will present their biodiesel research, and USDA’s Dr. Michael Haas, who will provide an overview of his work with low value feedstocks and in new process development.

Meredith Dorneker, a graduate student in geography at the University of Missouri – Columbia will present her research entitled “Federal Laws, Regulations, and Programs: application to biofuel production and the Roundtable on Sustainable Biofuels (RSB) Principles.” Chemical engineering undergrad at the University of Rhode Island Daniel Mallin will present his study on “The Glycerol Prewash and its Effectiveness for Removing Moisture and Free Fatty Acids from Waste Vegetable Oil for Biodiesel Production.”

The webinar will be held on October 18 at 4:00 pm central time and registration is free.

advanced biofuels, Biodiesel, NBB, Research

BioSolar Supplying Asian Manufacturers

Cindy Zimmerman

A company that makes bio-based materials for solar panels is getting more interest from Asian solar companies.

BioSolarCalifornia-based BioSolar, which develops materials from renewable plant sources that reduce the cost of photovoltaic (PV) solar modules, reports that a number of Asian solar manufacturers are actively evaluating the company’s BioBacksheet for use in solar panels.

BioSolar previously reported that it entered into a sales rep agreement with ShinHa, Inc, a Korean firm representing large Asian PV panel manufacturers targeting the North American solar market, which has led to increased interest from other Asian firms.

“Our BioBacksheet, which costs less than incumbent petroleum-based backsheets, has become very appealing to Asian PV panel manufacturers that export to the North American market. We are also seeing increased interest from foreign PV panel manufacturers pursuing sales to the U.S. government because of our USDA BioPreferred Certification,” said BioSolar CEO Dr. David Lee.

According to the company, the primary material used in the BioBacksheet is a durable polyamide resin made from castor beans. During the extrusion process, the castor beans are compounded with a secondary non-petroleum material to form a unique and highly durable PV backsheet film.

Listen to a DomesticFuel cast interview with Dr. David Lee.

Solar

NRC Report More Positive for Biodiesel

Cindy Zimmerman

While traditional and next generation ethanol came out negative in the National Research Council report out this week, the biodiesel industry was pleased with the findings.

Anne Steckel, vice president of federal affairs for the National Biodiesel Board, said the report reaffirms that biodiesel is an advanced biofuel that can meet the biomass-based diesel targets under the EPA’s Renewable Fuel Standard (RFS2). “We were happy that the authors recognized a wide variety of environmental and economic benefits from biodiesel,” said Steckel. “For example, they noted that soy biodiesel – about half of U.S. biodiesel production – has a positive impact on livestock feed prices, helping hold down costs. This is because only the oil – which accounts for about 18 percent of a soybean – can be used for fuel, and the highly nutritious soybean meal is used for feed. The report also reaffirmed that biodiesel significantly reduces particulate matter and other harmful tailpipe emissions when compared to petroleum diesel.”

Steckel added that the report noted that there are significant uncertainties surrounding the hypothetical modeling used to calculate indirect land-use change for biofuels. “We believe the evidence demonstrates that biodiesel compares very favorably when compared to petroleum, as the EPA found in its most recent analysis, which shows that biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent, depending on the feedstock used,” she said.

Biodiesel, NBB

Navy Exchange Offers E85 to Pensacola Drivers

Cindy Zimmerman

The Navy Exchange Service Command (NEXCOM) has partnered with Protec Fuel to provide more 85 percent ethanol fuel to flex fuel vehicle (FFV) drivers in Pensacola, Florida.

NEXNEXCOM opened its sixth E85 station on a U.S. Navy base at Naval Air Station Pensacola this week. This facility will provide access to E85 fuel for the Navy’s fleet of FFVs as well as the general public.

“We are proud to offer E85 as a preferred choice of energy to drive our country, improve our environment and reduce our country’s dependency on petroleum,” said Larry Boone, NEXCOM’s Automotive Program Manager. “The U. S. Navy is a leader in the use of alternative fuels, including ethanol and biodiesel.”

Florida-based Protec Fuel managed the E85 installation and provides the new greener burning fuel offering at the Navy Exchange (NEX). Protec and NEXCOM also opened two other stations together last year in Virginia.

“We are proud to work with the Navy and NEXCOM to offer this American fuel,” said Steve Walk, an Executive Director of Protec Fuel. “NEXCOM is providing a cleaner burning option for its customers, the Navy, and Pensacola drivers.”

The new Pensacola facility helps the Navy meet the Federal Leadership in Environmental, Energy, and Economic Performance Executive Order under President Obama’s direction, setting a goal of reducing petroleum use in the federal fleet.

E85, Ethanol, Ethanol News

Dow and Argonne Working on New Battery Materials

Cindy Zimmerman

The Dow Chemical Company and the U.S. Department of Energy’s Argonne National Laboratory have signed a multi-year research collaboration to jointly develop the next generation of materials for advanced battery technologies.

Dow and Argonne will be collaborating on several new materials with the intent to improve the performance, cost competitiveness and adoption of these advanced materials in the energy storage industry.

Argonne“We are pleased to work with Dow to create new advanced materials for the energy storage industry,” said Jeff Chamberlain, energy storage major initiatives leader for Argonne. “The goal of this collaboration will be to use our common scientific and technical capabilities to develop next generation energy storage materials that address the performance, cost and adoption challenges found in today’s emerging battery technologies.”

Argonne is a global leader in energy storage research and development, and has accrued a suite of more than 150 battery technology-related patents. In the last three years alone, Argonne’s lithium-ion battery technology has been licensed by General Motors, LG Chem, Envia, BASF and Toda Kogyo.

Electric Vehicles

Farm and Ethanol Groups Warn Against RFS Changes

Cindy Zimmerman

A coalition of seven agricultural and biofuels organizations sent a letter this week to two members of Congress who have introduced legislation to modify the Renewable Fuels Standard (RFS2), warning that it is unnecessary and could lead to higher prices at the pump.

The organizations were reacting to a bill introduced by Representatives Bob Goodlatte (R-VA) and Jim Costa (D-CA) that would reduce or eliminate the volumes of renewable fuel use required by the Renewable Fuels Standard (RFS) based upon corn stocks-to-use ratios.

The groups point to a recent analysis by economists at the University of Wisconsin and Iowa State University that found growth in ethanol production reduced gasoline prices by an average of $0.25 per gallon, or 16 percent, over the entire decade of 2000-2010. “In 2010, for example, the authors found that the use of ethanol reduced wholesale gasoline prices by an average of $0.89 per gallon,” the letter stated, adding that the result of an immediate reduction in ethanol output “would be a dramatic increase in U.S. gasoline prices and the resulting increase in U.S. gasoline imports would also cause world gasoline prices to increase in the short run.”

Speaking to concerns over high corn prices, the groups wrote, “Numerous studies have concluded that the RFS is a minor contributor to corn prices. The most recent study, a July 2011 analysis commissioned by the International Centre for Trade and Sustainable Development, found that corn prices would have been exactly the same in 2009/10 if both the RFS and Volumetric Ethanol Excise Tax Credit (VEETC) had not existed.”

The groups are the American Coalition for Ethanol (ACE), the American Farm Bureau Federation (AFBF), Growth Energy, the National Corn Growers Association (NCGA), the National Farmers Union (NFU), the National Sorghum Producers, and the Renewable Fuels Association (RFA).

More analysis on the issue can be found on the RFA E-xchange Blog.

ACE, biofuels, corn, Ethanol, Ethanol News, Growth Energy, NCGA, RFA

RFA Announces 2012 Leadership

Cindy Zimmerman

All officers of the Renewable Fuels Association were re-elected to serve another term at the ethanol organization’s annual membership meeting held this week in Washington DC.

RFAChuck Woodside of KAAPA Ethanol in Minden, Nebraska was re-elected as Chairman of the Board. Also re-elected were Vice Chairman Neill McKinstray, Ethanol Division Vice President and General Manager, The Andersons, Inc.; Treasurer Randall J. Doyal, CEO of Al-Corn Clean Fuel in Claremont, Minnesota; Secretary Walter Wendland, CEO of Golden Grain Energy in Mason City, Iowa; and President Bob Dinneen.

Additionally, the RFA welcomed Bill Brady, CEO of next generation ethanol technology company Mascoma and Chairman of the Advanced Ethanol Council (AEC), to the Board of Directors and Executive Committee of the RFA. The AEC represents a wide range of advanced ethanol technologies utilizing feedstock from grasses and corn stalks to wood waste, municipal solid waste and algae to produce clean, renewable ethanol and works in partnership with RFA.

advanced biofuels, AEC, Ethanol, Ethanol News, RFA

Corn and Cattle Groups Disagree Over Changing RFS

Cindy Zimmerman

Corn growers and cattle producers are at odds over new legislation introduced in the House that would change the Renewable Fuels Standard (RFS2).

The bill, sponsored by Reps. Bob Goodlatte (R-VA) and Jim Costa (D-CA), would allow Congress to reduce the RFS requirement for ethanol whenever corn stocks are tight.

Speaking on behalf of the National Cattlemen’s Beef Association (NCBA) during a press conference announcing the legislation, California beef cattle producer Kevin Kester said it would provide relief from tight corn supplies.

“Cattlemen are not opposed to ethanol and we’re not looking for cheap corn. We simply want the federal government to get out of the marketplace and allow the market to work,” Kester said.

Officials with the National Corn Growers Association (NCGA) say the measure would significantly weaken the RFS. “The U.S. ethanol industry is an integral part of job creation and economic opportunity throughout rural America,” NCGA President Garry Niemeyer, an Illinois corn grower, said. “This legislation would put progress made by the ethanol industry in jeopardy and we are asking members of Congress to oppose its passage.”

The RFS came into effect in 2005 and was reauthorized and expanded in 2007 to require the use of 12.6 billion gallons of corn ethanol this year and 13.2 billion gallons in 2012, topping out at 15 billion gallons in 2015.

The Goodlatte-Costa bill would require a reduction in the RFS when the stocks-to-use ratio drops below 10 percent, up to a 50 percent reduction if the ratio falls below 5 percent. Under the current corn supply, the reduction would be 15-25 percent.

corn, Ethanol, Ethanol News, Government