US Ag Secretary to Defend Biofuels at G20 Meeting

Cindy Zimmerman

Agriculture Secretary Tom Vilsack says he intends to defend biofuels at the G-20 Summit of Agricultural Ministers in Paris this week, stressing their importance to the economy and the environment.

“America is working on developing new feedstocks that don’t pit food versus fuel but that create new rural economic opportunities and allow us to continue to expand on our efforts to build a much more renewable energy source,” said Vilsack, who is attending the Paris Air Show prior to the G20 meeting to discuss biofuels for aircraft that can be made from dedicated energy crops.

The focus of the summit is on international efforts to ensure global food security and some groups are insisting that necessitates a change in biofuels policies. Oxfam is calling on Vilsack and the agriculture ministers of the other G20 countries to “urgently remove the types of biofuels subsidies and mandates that are leading to increased price volatility.”

Global RFAThe biofuels industry meanwhile is urging the ministers to examine the impact of crude oil price on food price volatility.

“It is imperative that the G20’s Agriculture Ministers use this first meeting to recognize that there is a direct and strong correlation between the price of crude oil and the price of food,” stated Bliss Baker, spokesperson for the Global Renewable Fuels Alliance (GRFA).

This will be the first meeting of all agricultural ministers in the Group of Twenty (G-20), which includes the United States, Argentina, Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudia Arabia, South Africa, the Republic of Korea, Turkey and the United Kingdom.

biofuels, Ethanol, Ethanol News, Food prices, International, USDA

Popemobile Reportedly Going Green

Cindy Zimmerman

A greener Popemobile is reportedly in the works and could be on the road by next year.

A German newspaper reported over the weekend that Mercedes-Benz is designing a new hybrid four-wheel drive for Pope Benedict XVI. The Vatican has confirmed that such a vehicle is under development but will not be ready in time for the pope’s visit to his native Germany in September as speculated and may be the end of next year before it will be put on the road.

The report says that Mercedes is working to develop a hybrid variation on the Pope’s M Class SUV that can run about 16 miles emission-free on a rechargable lithium-ion battery, yet have the backup power and pick up to reach high speeds in case of emergencies. The Mercedes Popemobiles feature thick bulletproof glass and a heavily-armored build for security and are mostly used on papal visits to other counties.

Electric Vehicles, Energy

Millons Spent on Lobbying for VEETC Reform

Joanna Schroeder

Last week was a crazy week in DC as several amendments to alter or kill the Volumetric Ethanol Excise Tax Credit (VEETC) were voted on by the Senate. While the first vote was in favor of ethanol (it defeated the Coburn amendment), the industry took a hit when Sen. Dianne Feinstein’s (D-CA) bill was passed, essentially killing VEETC and the tariff without a phase-out plan (but the ethanol industry doesn’t think it will pass into law). So who spent the most money to get their way on VEETC? Lobbyists against VEETC outnumbered and outspent pro-ethanol groups, according to data from First Street-CQ Press’ new policy intelligence platform.

First street followed the money dedicated to lobbying for both Senate Bill S. 520 Volumetric Ethanol Excise Tax Credit Repeal Act and House Bill H.R. 1075 Volumetric Ethanol Excise Tax Credit Repeal Act. During first quarter of this year, there were 32 lobbying firms representing 36 clients to the tune of $8,895,893.00. There were 22 lobbying firms active on the House side representing 18 clients and spent $3,645,862.08. So first quarter alone, more than $12 million was spent on lobbying for VEETC reform.

Who were the players on the Hill? Most were the usual suspects. On the pro-ethanol side the biggest spenders were Growth Energy, Renewable Fuels Association, National Corn Growers Association, and POET, who spent $450,000 to just lobby against the VEETC legislation in the House. In the last three years, UNICA, the Brazilian Sugarcane Industry Association, spent more than $500,000 to lobby for the end of the tariffs as well as various other ethanol amendments.

On the anti-ethanol side you had the Grocery Manufacturers Association (GMA), National Retail Federation, League of Conservation Voters, Environmental Working Group, American Meat Institute, National Cattleman’s Beef Association, National Turkey Federation, and more. The biggest spender was GMA who spent $900,000 lobbying for the House bill alone. On the Senate bill side, your two biggest spenders were Pepsico with $1.44 million followed by Kraft who spent $720,000 to get the bill passed.

As the debate continues around subsidies and balancing the federal budget, ethanol and other biofuel tax incentives are at the center of the chopping block and have already become an important policy point for the Republic presidential candidates. And anti-ethanol groups are stepping up their game with new advertising campaigns aimed at both policymakers and consumers, as well as an all-out assault in the realm of social media (there are now social media-focused lobbyists). It will come as no surprise then, to see millions upon millions more spent throughout the year on VEETC and other biofuel subsidy reform.

biofuels, Ethanol, Opinion

Book Review – Life Without Oil

Joanna Schroeder

Woe is a country who can’t break its dependence on foreign oil. But how do you make such a bold move when our entire society is built upon its wares? And even more so, how do you break the chains when there are no other alternatives? This are some of the topics discussed in this week’s book, “Life Without Oil: Why We Must Shift To A New Energy Future,” by Steve Hallett with John Wright. Hallett is a professor in the department of Botany and Plant Pathology at Purdue and Wright is an energy and environmental journalist.

The premise of the book is that the world is running out of oil while at the same time depleting itself of its natural resources. These two issues can combine to cause destruction and complete collapse of a society. The book begins by highlighting some of the societies that have disappeared due to lack of resources whether it be water or trees or others. One of the most famous case studies he uses is that of Easter Island, now owned by Chile, and the irony that although the people knew their future was in jeopardy due to diminished resources, they used them all anyway. Will this be society today?

Hallett is not a fan of biofuels as a solution to our problems. He also believes renewable energy, such as wind or solar, will only become mainstream when it is the only option. He also doesn’t think we will be laughing 30, 40, 50 years from now about how peak oil and climate change were myths.

In terms of the future energy sources, Hallett believes it will be one in which nuclear and hydrogen play major roles. Read More

biofuels, book reviews, Environment, Oil, Solar, Wind

Blaming Biofuels for Higher Food Prices One-Sided

Joanna Schroeder

In an effort to curb global rising food prices and food insecurity concerns, members of G20 nations will be meeting in Paris this week. A major focal point of discussion is set to be biofuels and earlier this month a report from Oxfam concluded that biofuels were part of the reason food prices are rising. The ethanol industry deems this view one-sided and has pointed out on numerous occasions, including today, that the report along with most arguments, fail to take into account the role global oil prices and market speculation play in the issue.

“It may be vogue for certain groups to blame biofuels for global hunger issues as though they didn’t exist before biofuel production, but that doesn’t mean eliminating biofuels policies will somehow put more food on the plates in developing nations,” said Renewable Fuels Association Vice President for Research and Analysis Geoff Cooper.

Cooper continued, “Exorbitant oil prices, excessive speculation in commodities markets, recent weather events, and host of other issues all play more significant roles in determining the price and availability of food than does biofuel production. As numerous reports have noted, bioenergy production can provide the catalyst many nations need to invest in agricultural technology, thus improving productivity, food security and their own energy stability.”

RFA considers the report incomplete and unbalanced and is asking G20 to “reject its findings” and request a revision of the report that takes into account a broader range of factors that contribute to food price swings. RFA would also like the report to include comments from stakeholders as well as consider other literature available on the subject. Finally, Cooper says that the call to abandon biofuel production is shortsighted and ignores the contributions it can offer including food and energy security.

biofuels, Ethanol, RFA

Self Powered Cellulosic Refinery Launched

Joanna Schroeder

Back in 2009, Allard Research and Development debuted its small ethanol and biodiesel refineries. This month, they have released the first self-powered modular cellulose ethanol refinery that uses cellulose feedstock grown as part of the system in hydroponic shipping containers. The system can produce 20 gallons per hour and fits into 3,600 square feet and can be attached together to create larger scale systems.

“The ability to grow the cellulose feedstock as part of the system is a game-changer,” said Adam Allard, Founder and Chairman. “Historically, the big limiting factor for people wanting to make their own ethanol fuel has been a lack of abundant feedstock.  Now it comes with the system. This process also provides an answer to an ongoing debate in this industry… it stops the food vs. fuel debate and does not take farmland that could be used to produce food crops.”

The patent pending system integrates an engine generator and distillation system in one. The waste heat from the engine is used for the distillation process and creates enough electricity to also power the entire mini biorefinery. The engine uses the gasified waste from the cellulose process as its fuel. In addition, the water is cleaned and reused in the system. Together, the ethanol is produced in a closed-loop system that minimizes waste and uses all feedstock components.

The company believes that its mini-biorefinery is a good option because it can be sited next to the feed source, needs only a fraction of the costs of a full-scale plant and the fuel can be sold to fuel retailers for use as E85 or any other ethanol fuel blends. The company expects to go into production during the 1st Quarter of 2012 but is currently taking orders.

Cellulosic, Ethanol

Hall Wines Installs EV Charger

Joanna Schroeder

Napa, California-based Hall Wines has paid for and installed an ECOTality electric vehicle charging station. “We are pleased to be working with an organization that is as passionate and supportive of the environment, as ECOTality,” said Jonathan Read, CEO of ECOTality, Inc. “In addition to enriching the successful execution and continued maintenance of rich electric vehicle charging infrastructures in California, the installment of EV Charging Stations in Napa Valley and Sonoma is an exciting opportunity. HALL Wines’ support of the EV Project further allows us to expand our outlets of data collection, enabling us to evaluate the effectiveness of charging infrastructure, ultimately leading to our goal of widespread EV use throughout the United States.”

Hall Wines installed a Blink Level 2 Commercial Pedestal Charger. According to EcoTality, their design is easy and safe to use and provides user-friendly features to charge electric vehicles. The system is integrated with the Blink Network and offers easy payment options. Hall Wines will also be able to access informational delivery data flow, AMI interface capability, internal meter to monitor energy and demand usage as well as energy usage data evaluation.

“Since launching HALL Wines, we have been dedicated to preservation of the environment and bringing innovation to Napa Valley,” said Ambassador Kathryn Hall, HALL Wines Owner and Vintner. “HALL Wines is always looking for new ways to provide support and dedication to the sustainable living movement. We continue to reinforce our commitment to the health of the land, as well as that of the greater Napa Valley ecosystem. The latest initiative to install EV charging stations at HALL St. Helena and Roessler Cellars, is an expansion of our sustainability efforts and is our way of not only encouraging health of the land in wine country, but everywhere.”

Electric Vehicles, Electricity, Energy

Green Jet Fuel Powers Transatlantic Biofuel Flight

Joanna Schroeder

Over the weekend, a transatlantic flight, flying with biofuels, landed at the Paris-Le Bourget Airport. The plane was fueled with Honeywell’s Green Jet Fuel. The Honeywell-operated Gulfstream G450, powered by a Rolls-Royce engine, is the first flight from North America to Europe using the 50/50 biofuel blend derived from camelina grown and harvested by Sustainable Oils.

The flight departed at 9:00 pm on Friday, June 17th from Morristown, New Jersey and arrived in Paris approximately 7 hours later, on Saturday, June 18. The flight followed the route taken by Charles Lindbergh’s first flight across the Atlantic. According to Honeywell, using lifecycle analysis, its Green Jet Fuel eliminated 5.5 metric tons of carbon dioxide as compared to the same flight if using petroluem-only based jet fuel.

“This first biofuel trip across the Atlantic, along with more than a dozen other commercial and military test flights conducted to date, demonstrates that Honeywell Green Jet Fuel more than meets the demanding requirements for air travel,” said Jim Rekoske, vice president and general manager of Renewable Energy and Chemicals for Honeywell’s UOP. “Now that the initial ASTM International approval is in place, we are one step closer to commercial use that will help the aviation community reduce its carbon footprint and dependence on crude.”

Pres Henne, senior vice president, Programs, Engineering and Test for Gulfstream added, “Gulfstream is committed to achieving business aviation’s ambitious goals on emissions reductions. These include carbon neutral growth by 2020 and a reduction in total carbon emissions of 50 percent by 2050 relative to 2005. We are working with engine companies and other innovators, such as Honeywell, to ensure we can meet these initiatives. We are very proud to participate in this historic demonstration.”

Honeywell has produced more than 700,000 gallons of Honeywell Green Jet Fuel for use in commercial and military testing. In each of the 16 biofuel flights conducted to date, Honeywell Green Jet Fuel proved that it meets all specifications for flight on military and commercial platforms without any modification to the aircraft or engines.

biofuels, biojet fuel

New Energy & Commodities Investment Team Formed

Joanna Schroeder

Cary Street Partners has formed a new Energy & Commodities Investment banking team focused on energy and its related sectors including traditional and alternative energy as well as agriculture services. Joining the new group is Craig Shealy who was formerly the founder of Osage Bio Energy, currently up for sale. Shealy will serve as managing director and group head.

“We are delighted Craig has joined Cary Street Partners and will be leading our Energy and Commodities team,” said Mark Gambill, chairman. “Over the past decade we have experienced a growing demand for investment banking services from our energy clients. Craig’s hire is yet another step in the on-going expansion of Cary Street Partners’ investment banking business. We welcome his deep industry knowledge, extensive client relationships and successful track record. His breadth of experience, including most recently as the founder of Osage Bio Energy, will provide a unique perspective in serving the needs of our energy industry clients.”

Shealy will begin growing the groups’ portfolio in the ethanol, biodiesel and biomass industries and he says there is enormous opportunities for consolidation in the ethanol and biodiesel markets. He also notes that there is growth capital available for innovative and viable development projects and he believes Cary Street Partners will provide an excellent platform to serve companies in the energy and ag sectors.

“I am extremely excited about helping meet clients’ needs for capital and strategic advice as the energy and commodity-based industries continue to grow and entities seek out consolidation and liquidity opportunities,” added Shealy.

Agribusiness, Biodiesel, bioenergy, biofuels, Ethanol

UNICA Launches Sugarcane Website

Cindy Zimmerman

The Brazilian Sugarcane Industry Association (UNICA) recently launched a new website to promote “clean solutions from sugarcane.”

SugarCane.org was launched during the 2011 Ethanol Summit in São Paulo, Brazil. “We decided to launch this new site to share knowledge and information with a growing global community of people who want to know how their food and energy choices affect our environment and people worldwide,” said UNICA’s President and CEO, Marcos Jank. “Today, sugarcane is the basic input for a diverse and growing range of value-added products, including sugar, ethanol, bioelectricity, bioplastics, bio-hydrocarbons, among others being developed. Sugarcane by-products are efficient and sustainable solutions that can replace gasoline, diesel, plastics and beyond that. Just imagine. Solutions from sugarcane,” Jank said.

Brazil, Ethanol, UNICA