Proterra Secures $30M in Financing

Joanna Schroeder

Proterra Inc has secured $30 million in financing led by Silicon Valley venture firm Kleiner Perkins Caufield & Byers. Also participating were GM Ventures, Mitsui & Co. Ltd., Vision Ridge Partners, and 88 Green Ventures. Golden, Colorado-based Proterra will use the money to accelerate the commercialization of its fast-charge battery electric transit buses and automated bus charging system.

“Our goal at Proterra is to fundamentally transform urban transit,” said Jeff Granato, President of Proterra. “The tremendous resources of Kleiner Perkins, leveraged with GM’s automotive expertise and the financial and technical strength of Mitsui, Vision Ridge and 88 Green Ventures gives us an enviable platform to compete and win in the electric transit bus market.”

Proterra’s main product is its 35 foot EcoRide BE35 bus. A bus is currently being tested by Foothill Transit in Pomona, California since last September. The company plans to deliver EcoRide buses to VIA Transit in San Antonio and Tallahassee Star Metro later this year. The bus is emission free, quiet and charges in less than 10 minutes with the company’s FastFill charging station. When compared to the diesel buses EcoRide is designed to replace, the bus is averaging nearly 24 miles per gallon, a 600 percent improvement over a typical diesel bus that averages only 4 miles or less per gallon.

Former Vice President Al Gore, a partner with Kleiner Perkins Caufield & Byers noted, “Electrification of public transportation has tremendous benefits to governments, municipalities and citizens by reducing the operating cost of transit, while also eliminating local air pollution and reducing C02 per passenger mile in the industry.

The funds will be used to complete federal validation testing, launch additional pilot fleets, as well as enable the company to reduce costs and increase volume of production at its production facility in Greenville, South Carolina.

Electric Vehicles

Alcatel-Lucent Flips the Switch On Solar System

Joanna Schroeder

Solar energy has come full circle for Bell Labs. Recently, Bell Labs Global Headquarters in Murray Hill, NJ “flipped the switch” on its 1.2 megawatt solar power system. This is the same site where in 1954, Bell Labs researchers invented the first device to convert sunlight into electricity in meaningful amounts.

A formal ceremony was held at the site on Jun 7 and participants included Robert Mennella, COO, ConEdison Development; New Providence Council President Michael Gennaro; John Conley, Project Development Director, SunPower Corporation; and Stephen Reynolds, General Counsel, Alcatel-Lucent. The solar system is comprised of 3,728 solar panels and was designed and constructed by SunPower Corp. The new solar power system will provide an estimated 10 percent of the campus’ electricity when operating at peak capacity. The system is owned and operated by ConEdison Development.

Electricity, Energy, Solar

Diverse Groups Oppose Coburn Ethanol Amendment

Cindy Zimmerman

In advance of a vote in the Senate on an amendment to eliminate the Volumetric Ethanol Excise Tax Credit (VEETC) immediately, ethanol interests remain “cautiously optimistic” that the measure will fail.

Seven agriculture and ethanol organizations sent a letter to the Senate leadership urging a no vote on the amendment proposed last week by Sen. Tom Coburn (R-OK). In it the groups note that, “As evidenced by the ethanol tax reform legislation recently introduced by a bipartisan group of senators and supported by our nation’s ethanol producers, the ethanol industry understands the need for reforming the tax incentive to significantly reduce costs to a more responsible approach that protects the evolution of the industry.” Groups signing the letter include the American Coalition for Ethanol, Advanced Ethanol Council, American Farm Bureau Federation, Growth Energy, National Corn Growers Association, National Farmers Union, and the Renewable Fuels Association.

Other groups that have voiced opposition to the amendment include the Petroleum Marketers Association of America (PMAA), and the Society of Independent Gasoline Marketers of America (SIGMA) which sent a letter to Sen. Coburn in opposition stating, “…an abrupt termination of VEETC before that date will injure many marketers who have contracts to purchase ethanol at prices that were premised upon the existence of VEETC through the year 2011. SIGMA assumes that such a consequence is not your intent and therefore urges you to forego any legislation which would end VEETC before the end of this year.”

A vote on the amendment is expected this afternoon.

ACE, AEC, corn, Ethanol, Ethanol News, Growth Energy, RFA

Brazil Exports Ethanol, Struggles to Meet Its Ethanol Demand

Joanna Schroeder

This month, Brazil has resumed exporting ethanol to the United States, at the same time the country is struggling to meet its own country’s demand for ethanol to fuel is flex fuel vehicles (FFVs). Ethanol producers in the country have expanded exponentially – there are more than 115 ethanol plants many of which have come online since 2005. However, despite massive investments by foreign companies into the country’s biofuels industry, nary a five new ethanol plants are expected to come online the remainder of this year.

Some may remember that last year due to a decreased sugarcane harvest caused by excessive rains, the country reduced its minimum ethanol requirements in the country’s fuel. Then this year, threat of another reduction circulated when once again the sugarcane harvest was lower than expected. In response, the government has cited ethanol shortages due to poor long-term strategic planning by the industry. The ethanol industry countered that the cause of problems lies in lack of uneven taxes, vague plans for future regulation and lack of investment incentives.

“As long as there is no clarity about the policy for fuels, there is a risk for investments,” said the president of Sao Paulo-based Datagro consultants, Plinio Nastari in a Reuters article.

Yet on the flip side of this bickering between the Brazilian government and Brazilian ethanol producers, the industry has once again begun exporting fuel to the U.S. over the past few months. According to brokers quoted in a recent Soyatech article, the ethanol industry has exported 1.9 million barrels to the U.S. as a result of fuel retailers needing to meet the requirements of the Renewable Fuels Standard.

Brazilian sugarcane ethanol has been considered an advanced biofuel as designated by the U.S. Environmental Protection Agency (EPA). Since there is a shortage of advanced biofuels being produced in the U.S., sugarcane ethanol has become a premium fuel for the obligated parties. Ironically, the exportation of ethanol was an abrupt change as earlier this year Brazil imported ethanol to meet its country’s mandates – the first time since 1994.Read More

biofuels, Brazil, Commentary, Ethanol, International

Fuel Retailer Opposes Thune/Klobuchar Bill

Joanna Schroeder

Earlier today, Sens. John Thune (R-SD) and Amy Klobuchar (D-MN) created waves when they announced their new biofuels bill the Ethanol Reform and Deficit Reduction Act. This act is designed to address federal budget issues while phasing out ethanol tax incentives (VEETC) that are designed to go to the fuel blender of record. While the ethanol industry came out in full support of the bill, expected to be voted on tomorrow, some in the fuel retail industry have quite a different view – in favor they are not.

In an exclusive interview with DomesticFuel, Mike Lewis, Principal of one of the largest renewable fuel retailers in California, Pearson Fuels, said that
while ethanol subsidies have become unpalatable to many legislators, it is important to keep in mind that in the short term there are really only two fuel options for the 200 million plus gasoline and flex fuel vehicles on the the US roads. These two options are 1) gasoline or 2) gasoline and ethanol blends, period.

Lewis continued by saying, “As distributors and proponents of E85, we can tell you with certainty that when the VEETC is reduced or eliminated there will be an immediate decrease in the price advantage E85 has versus gasoline and this will immediately, significantly hurt E85 volumes, gasoline’s only real competitor. It will also put more pressure on the price of gasoline, causing it to increase.”

The Thune/Klobuchar Ethanol Reform and Deficit Reduction Act will incentivize some E85 infrastructure, says Lewis, but this will pale in comparison to the existing benefits of the VEETC enjoyed by E85.

“What we really need is a carve out for E85 from any elimination of the VEETC,” said Lewis. “Gasoline is subsidized in so many direct and indirect ways. For example, why do so many Americans know where the Straight of Hormuz is and how many tax dollars have we spent there? There is no line item for US Military on oil company expense statements, but it is absolutely an expense required to ensure access to their raw materials. The expense to carve out E85 from VEETC elimination is insignificant by comparison.”

Should the Ethanol Reform and Deficit Reduction Act be passed, it would take effect July 1, 2011.

biofuels, E85, Ethanol, Legislation

ASTM Close to Approval on Renewable Jet Fuel Specs

Joanna Schroeder

You hear a lot about the role biofuels could take in the aviation sector. Just a few weeks ago, the U.S. Air Force successfully tested renewable jet fuel in several of their fighter planes. Biojet fuel is poised to become a big player for the U.S. military which is the largest user of fuel in the country. But what might be holding biojetfuel back on a commercial aviation scale? No ASTM International Committee on Petroleum and Lubricant approvals.

ASTM develops standards related to oil products. You hear much ado about the biodiesel industry producing ASTM standard biodiesel but we haven’t heard much on this issue in terms of aviation. This week, ASTM announced a provisional approval for a new specification for hydroprocessed renewable jet fuel.

“This is a significant step toward a new era of greener and more energy-independent air travel,” said US FAA Administrator Randy Babbit. “We anticipate publication of a standard in the next few weeks will open the door for production of commercial aviation biofuels that can be used without changing aircraft systems or airport fueling infrastructure.”

To help move along the approval process, the Commercial Aviation Alternative Fuel Initiative conducted thorough research and testing. Once the standard is officially approved, biojet fuels with up to a 50 percent blend can be used. Feedstocks currently in the running – camelina, jatropha and algae.

biofuels, biojet fuel, Miscellaneous

Thune/Klobuchar Bill Endorsed by Ethanol Industry

Joanna Schroeder

Senators John Thune (R-SD) and Amy Klobuchar (D-MN) along with a bipartisan group of nine other Senate colleagues have introduced the Ethanol Reform and Deficit Reduction Act. The bill is designed to modify the current Volumetric Ethanol Excise Tax Incentive (VEETC), which is a set tax, to a variable tax incentive tied to the price of oil. To help open up market access for ethanol, the bill would also allocate funds saved through the updated ethanol tax incentive, to be used to expand fueling infrastructure through the vehicle of improved tax policies.

The legislation would generate $2.5 billion by ending the blenders’ credit or VEETC on July 1, 2011, and allocate $1 billion to deficit reduction and invest $1.5 billion in a blender pump tax credit, cellulosic biofuel tax incentives, a variable VEETC safety-net, and extension of the Small Ethanol Producer Tax Credit. While the USDA currently has a 10,000 blender pump program, the Ethanol Reform and Deficit Reduction Act also calls for 53,000 blender pumps – a number the ethanol industry feels is necessary to meet the Renewable Fuels Standard requirements.

“The legislation essentially sacrifices the ethanol blenders’ credit to catalyze next-generation biofuels and level the playing field with oil with one half of the market access puzzle – blender pumps,” said Brian Jennings, executive vice president of the American Coalition for Ethanol. “The other half of the market access puzzle, Flexible Fuel Vehicles (FFVs) will need to be addressed separately. ACE has been working behind the scenes with Republicans, Democrats, and the White House to advance this reform package and we will strongly support its adoption in Congress.”

Renewable Fuels Association President and CEO Bob Dinneen added, “This is thoughtful, responsible legislation that addresses the need for sound budget policy with progressive and innovative strategies for creating jobs and ending America’s addiction to imported oil. Read More

ACE, advanced biofuels, Ethanol, Ethanol News, Growth Energy, Legislation, RFA

Ethanol Expected to be Debate Topic

Cindy Zimmerman

Ethanol is expected to be a hot topic when Republican presidential hopefuls debate tonight in New Hampshire.

The candidates who are scheduled to participate include Minnesota Congresswoman Michele Bachmann, businessman Herman Cain, former Speaker of the House Newt Gingrich, Texas Congressman Ron Paul, former Minnesota Governor Tim Pawlenty, former Massachusetts Governor Mitt Romney and former Pennsylvania Senator Rick Santorum.

Renewable Fuels Association President Bob Dinneen expects ethanol to be on the agenda during the debate and hopes it will provide the opportunity for a more comprehensive conversation about America’s energy future. “America desperately needs a thoughtful, comprehensive and realistic energy strategy that fully appreciates and incents the use of domestically produced renewable fuels like ethanol,” Dinneen said.

The candidates’ views on ethanol have already been the subject of many media reports, which started hot and heavy when Gingrich made headlines in January at the Iowa Renewable Fuels Summit. At the same meeting, Santorum said he supports ethanol and called himself a “biofuels convert”.

Pawlenty made news when he announced his candidacy and called for a reform of ethanol policy similar to what the industry supports, while fellow Minnesotan Bachmann is also reportedly interested in re-examining ethanol supports.

Romney says he believes that ethanol is “an important part of our energy solution in this country” and Herman Cain also sees ethanol as one part of a needed comprehensive plan for energy independence.

Of the candidates scheduled to appear tonight, only Ron Paul, as a Libertarian and representative of Texas, has been consistent in his opposition to ethanol support.

Ethanol, Ethanol News, Government

DOE Announces $36M in Advanced Biofuels & Chemicals Funding

Joanna Schroeder

U.S. Secretary of Energy Steven Chu announced today $36 million in federal grants to fund six small-scale projects in five states designed to produce drop-in advanced biofuels and other bio-based chemicals. Each project’s goal is to improve the economics and efficiency of converting non-food biomass feedstocks into biofuels, bioproducts and biochemicals.

“Projects such as these are helping us to diversify our energy portfolio and decrease our dependence on foreign oil,” said Secretary Chu. “Together with our partners, the Department is working hard to expand the clean energy economy, creating jobs in America and providing sustainable replacements for the fuels and products now provided primarily by petroleum.”

According to Chu, the new round of funding will help diversify DOE’s Biomass Program portfolio to include a breadth of fuels and chemicals beyond cellulosic ethanol. The secondary goal is to ensure that the Department’s research and development on biofuels remains integrated and strategic.

The following projects were selected:

− General Atomics: San Diego, California who was awarded up to $2 million
− Genomatica, Inc., San Diego, California, who was awarded up to $5 million
− Michigan Biotechnology Institute, Lansing, Michigan, who was awarded up to $4.3 million
− HCL CleanTech, Inc., Oxford, North Carolina, who was awarded up to $9 million
− Texas Engineering Experiment Station, College Station, Texas, who was awarded up to $2.3 million
− Virent, Madison, Wisconsin, who was awarded up to $13.4 million

advanced biofuels, biochemicals, biofuels, biomass

New Propane Station Opens in New York

Joanna Schroeder

Geneva, New York is the home of the newest propane autogas fueling station. The station is owned by Phelps Sungas and the conversion took place with the help of Alliance AutoGas. To mark the event, a ceremony was held and on hand were New York State Senator Michael F. Nozzolio, Finger Lakes Regional Director for New York Empire State Development, Bob McNary along with President of Phelps Sungas, Roland Penta who is also the Chairman of the National Propane Gas Association.

“Propane autogas is a clean, cost-effective and domestically produced vehicle fuel that is rapidly growing in popularity with fleets across the country,” said Penta. “Our new fueling station in Geneva is a crucial step toward making American-made autogas more widely available to the public. Not only do vehicles running on autogas experience lower fuel costs, the up-front expense of implementing autogas fueling infrastructure is significantly lower than that of other alternative fuels—making it a much more viable choice for going green while saving some green.”

In other Alliance AutoGas news, the City of West Point, Mississippi plans to convert eight 2009 Ford Crown Victoria police cruisers to propane autogas. To help with the conversions, Alliance AutoGas offers not only vehicle conversions but also on-site fueling and ongoing safety training and technical support.

According to Police Chief Bobby Lane, whose team will be utilizing the converted vehicles, the propane-powered engines are expected to last two-three times longer with projected savings for the city of $26,000 annually.

“The city of West Point is ultimately supporting American energy security by running their police fleet vehicles on autogas,” added Alliance AutoGas representative Mark Denton. “The U.S. autogas supply is more than 90 percent made-in-America, so these officers can feel good knowing they’re helping reduce our nation’s dependence on foreign oil.”

Propane