House Spending Bill Cuts Renewable Energy Programs

Cindy Zimmerman

Two renewable energy programs designed to help make America more energy independent were slashed in the spending bill passed Tuesday night by the House Appropriations Committee.

The Rural Energy for America Program (REAP) which provides grants and loan guarantees to agricultural producers and rural small businesses to help purchase renewable energy systems, including ethanol blender pumps, was cut from the current $75 million to just $1.3 million, but that was at least a slight victory since the program was slated for elimination. Rep. Marcy Kaptur (D-OH) sponsored the amendment which salvaged the small amount that will allow USDA to continue to operate the program for the time being. Agriculture Secretary Tom Vilsack just announced in April that the program could be used to install blender pumps, with a goal of installing 10,000 pumps nationwide in the next five years. Last week, he was in Tennessee promoting the program.

At the same time, the committee provided no funding for the Biomass Crop Assistance Program (BCAP) in the fiscal year 2012 appropriations bill, despite pleas from a variety of agriculture, biofuels and even environmental organizations. “BCAP is just beginning to take shape in transforming rural America’s contribution to the nation’s renewable energy supply,” the groups wrote in a letter to committee leadership. “BCAP provides critical assistance to help farmers and foresters plant and collect next generation, purpose grown energy crops and other biomass that are key to ensuring the near‐term commercialization of low‐carbon advanced biofuels, power, and products. Failing to strongly fund BCAP in FY 2012 will severely stunt the development of these new dedicated energy crops just at a time when they are needed to further develop domestic sources of energy.”

The bill now goes to the full House for a vote but is likely to change substantially in the Senate.

biofuels, biomass, blends, Ethanol, Ethanol News, Government

New Oxfam Report: Growing a Better Future

Joanna Schroeder

A new report, “Growing a Better Future,” has the ethanol industry up in arms over its accusation that U.S. biofuel policy is leading to world hunger. The report kicked off a new worldwide GROW campaign spearheaded by the organization. The report covers the symptoms of today’s broken food system: growing hunger, flat-lining yields, a scramble for fertile land and water, and rising food prices while the GROW campaign attempts to overcome these issues.

The report predicts that the price of food, already at a record high, will more than double in the next 20 years. In addition, by 2050, demand for food will rise 70 percent, yet the report says the world’s capacity to increase food production is declining. A contributor to these issues: global climate change and pro biofuel policies throughout the world.

“Our world is capable of feeding all of humanity yet one in seven of us are hungry today,” said Jeremy Hobbs, Executive Director of Oxfam. “In this new age of crisis, as climate change impacts become increasingly severe and fertile land and fresh water supplies become increasingly scarce, feeding the world will get harder still. Millions more men, women and children will go hungry unless we transform our broken food system.”

Both Growth Energy and the Renewable Fuels Association acknowledge that Oxfam is partially correct in their identifying the role that high oil prices and international trade have on the price of corn. However, they diverge with the report on biofuels being a cause of starving “millions of people” as the report purports.

“Oxfam is wrong to propose ending the Renewable Fuel Standard or the biofuels tax credit, as these are the most effective policies we have to displace oil – a primary driver of rising grocery prices,” said Jim Nussle, Growth Energy President. “It is unfair and erroneous to single out ethanol for high food prices, especially because the U.S. ethanol industry uses just three percent of the global grain supply on a net basis.”

RFA President Bob Dinneen highlighted the significant improvements in agriculture over the past few decades and called for more widespread adoption of improved agricultural practices worldwide. “The same opportunities at varying scales are available to farm communities in developing nations. Together with improved farming technologies, local biofuel production can provide developing rural economies with the kind of economic prosperity needed to become more food secure,” concluded Dinneen.

biofuels, Ethanol, food and fuel, Growth Energy, International, Research, RFA

Ethanol Industry Supports Veterans

Joanna Schroeder

Memorial Day may be over but that doesn’t mean we shouldn’t think about our veterans for another year. This past holiday, Clean Fuels Development Coalition (CFDC) and the FlexFuel Vehicle Awareness Campaign partnered with the Volunteers of Underage Military Service (VUMS) with a procession of ethanol and hybrid electric vehicles in a Memorial Day parade in Washington, D.C. The purpose of the event was to showcase the role ethanol has in the country’s quest for national security and domestic clean energy.

One of the participants of the event was Marine Lt. Col. (ret) William C. Holmberg, a VUM and board member of American Council on Renewable Energy (ACORE). “Our slogan is There is no National Security without Energy Security,” said Holmberg. “Groups like CFDC, Ethanol Across America, the Flexible Fuel Vehicle Awareness Campaign and ACORE work every day to increase that awareness. Marching together in the shadow of the Washington Monument, the Capitol, and the memorials helps people get the connection that much of the unrest around the globe has links to oil. Increasing our supply of domestic fuels makes our nation safer and more secure, plain and simple.”

The procession included the CFDC/Ethanol Across America FlexFuel Chevy Avalanche and Novozymes’ FlexFuel Vehicle promoting biomass to ethanol. Today there are more than 9 million flex fuel vehicles on the road. Doug Durante, director of the Ethanol Across America program noted that if these vehicles ran on fuels such as ethanol the country could immediately reduce its reliance on foreign sources of oil and military costs associated with protecting oil interests.

“It is an honor for us to be part of the salute to all those who have served. Our generation sees the loss of jobs, wealth, and military cost of importing more than 60% of our oil, and we have an opportunity to do something about it,” said Durante. “If reducing our dependence on oil keeps us out of one less conflict, and keeps young Americans from having to be memorialized, then we should all be working toward that goal.”

Col. Holmberg concluded by adding, “Alternative fuel, high-mileage vehicles and ethanol are our front lines in securing a more secure energy future for America, and, by the way, major artillery in our climate change battles.”

biofuels, Ethanol, Flex Fuel Vehicles

Principal Solar Acquires Capstone Solar

Joanna Schroeder

Principal Solar, Inc. (PSI) has announced its acquisition of Capstone Solar, a news and networking site geared to solar professionals. Terms were not disclosed but Principal Solar said the deal fits within their unique company solar strategy. Capstone Co-Founder Dan Bedell said it is great to find a group of people so committed to the advancement of solar power as the PSI team and he believes the company has the wherewithal to bring its vision to fruition.

“We look forward to combining Capstone’s interactive web conferences and dynamic communities with the existing resource base of PSI’s Definitive Solar Library—an online library that is under development and dedicated exclusively to the solar industry,” said Rick Borry, co-founder of Capstone and chief technology officer at PSI.

Michael Gorton, CEO and Chairman of PSI added that with the favorable and competitive cost of photovoltaics he has complete confidence that his company’s model will be a “unifying force” for making solar energy available worldwide.

Company Announcement, Solar

Biomass Harvest Still Allows Soil Conservation

Cindy Zimmerman

New data shows that responsible harvesting of biomass for ethanol can be part of good soil management efforts for farmland.

POET Project LIBERTYIowa State University has completed analysis on data from the third year of an ongoing study for POET’s “Project LIBERTY” near Emmetsburg, Iowa to monitor how soil health is affected when crop residue is removed. The planned 25 million-gallon-per-year cellulosic ethanol plant will use corn cobs, leaves, husks and some stalk to produce renewable fuel.

According to POET, the latest data shows that “removing about 1 bone-dry ton per acre (which is about 25 percent of the area’s above-ground crop residue) will not cause significant nutrient loss. In fact, corn yields continued to show no yield loss or moderate increases in fields with this rate of biomass removal.”

“Based on this study, we conclude that 1½ to 2 tons/acre of corn stover can safely be harvested” from fields similar to those used in the study, according to the research summary prepared by Dr. Douglas L. Karlen with USDA-Agricultural Research Service and Dr. Stuart Birrell with Iowa State University. Appropriate removal rates will vary depending on how productive the soil is in a specific area.

Project LIBERTY Director Jim Sturdevant said POET is committed to a conservative approach to biomass harvesting. “We’re contracting for fewer tons per acre to ensure good soil management even in years when yields are lower. Also, our farmers have moved away from traditional methods of stover removal: of chopping, raking, baling and leaving the field black,” he said.

Farmers harvesting for POET typically turn off the chopper on their combines and leave windrows behind during grain harvest. Farmers do not rake the biomass before the baler gathers it. Last fall, 85 farmers harvested 56,000 tons of biomass, and they are almost finished delivering it to Project LIBERTY’s 22-acre stackyard.

biomass, Cellulosic, Ethanol, Ethanol News, POET

Free BioGen Workshop Announced

Joanna Schroeder

Sprague Energy Corp and BIODICO are hosting a FREE workshop designed to encourage the use of biodiesel in diesel powered generators and power units. The use of biodiesel blends significantly reduces air pollution and can also help cut energy costs. The workshop will take place on June 9, 2011 from 8:30 am – 12:00 pm at Bronx Community College at the Playhouse Auditorium (New York). Speakers will include industry experts, state agency experts, biodiesel users and engine manufacturers.

The workshop is targeted to biodiesel enthusiasts, engaged consumers, private businesses, maintenance contractors, schools, hospitals, municipalities, utilities and public buildings. The state of New York recently passed legislation requiring a 2 percent blend biodiesel (B2) to be used in all heating oil, known as BIOHEAT but biodiesel blends can also be used effectively in diesel equipment such as generators. After the speaker presentations, there will be an audience question and answer session. Participants will also receive educational materials provided by BioGenset.

Space is limited so please RSVP to info@biogenset.com. You can also register online at www.biogenset.com. The workshop is partially funded by the New York State Energy Research and Development Authority (NYSERDA) and also supported by the New York City and Lower Hudson Valley Clean Cities Communities.

Biodiesel, Education

RFA Co-Hosts California Ethanol Safety Seminar

Cindy Zimmerman

RFAThe Renewable Fuels Association (RFA) and the San Joaquin Valley Clean Cities Coalition will be co-hosting a free Ethanol Safety Seminar in Stockton, California at the San Joaquin Delta College on June 6.

Seminar attendees will receive in depth information on proper training techniques that first responders and hazmat personnel need to effectively respond to an ethanol related emergency. While primarily targeting first responders, hazmat teams, safety managers, and local emergency planning committees, it is also open to the general public.

“California is using 1.3 billion gallons of ethanol a year thanks to facilities like Pacific Ethanol located in Stockton. Pacific Ethanol alone is producing, storing and transporting 60 million gallons of ethanol a year,” said Robert White, RFA Director of Market Development. “With this amount of ethanol being produced and consumed in the state, first responders and hazmat teams should be familiar with the plant facility and well informed on ethanol fuel so they are able to appropriately respond to a related emergency.”

The seminar will feature both a morning session from 9:00am-2:00pm and an evening session from 5:30pm-10:00pm. Certificates of participation will be distributed following the completion of the seminar. Lunch and dinner will be sponsored by Pacific Ethanol. There will also be an ethanol plant tour at the Pacific Ethanol facility between the two sessions.

For more information and to register, visit www.rfa.traincaster.com.

Ethanol, Ethanol News, RFA

Farm Bill Changes Called For

Chuck Zimmerman

Of course we planned our latest ZimmPoll to coincide with the first public hearings on the new farm bill. Uh. Right. But that’s how it worked out. This past week we’ve asked the question, “What is your opinion about the farm bill?” Early in the poll there was not a large gap in response but then things changed and the choice of Needs Overhaul zoomed out in front with 61% choosing it. That’s followed by 31% who said it Needs Minimal Change and then 8% with Leave as is. I guess the bottom line is that something needs to change, eh?

If you missed the first hearings by the Senate Ag Committee you can still watch them:

Food for Thought: The Role, Risks and Challenges for American Agriculture and the Next Farm Bill in Meeting the Demands of a Growing World

Opportunities for Growth: Michigan and the 2012 Farm Bill

Our new ZimmPoll is now live. We’re asking the question, “Have you ever used your smartphone to scan a QR code?” Well, have you?

And if you have any questions you want to suggest for future ZimmPolls please let us know.

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

ZimmPoll

DFCast: The Biofuels Industry Gets Married

Joanna Schroeder

The biofuels industry got married when a first generation ethanol plant walked down the isle with a second generation algae plant in Shenandoah, Iowa. BioProcess Algae and Green Plains Renewable Energy (GPRE) tied the knot and celebrated their anniversary last month with the announcement that their first babies, a set of Grower Harvester bioreactors, went online. This marked the last phase into adulthood – the algae plant is months away from commercial scale production.

Tim Burns, CEO of BioProcess Algae said this project is about both co-location opportunities as well as adding value to carbon. The algae plant will utilize the waste streams of the ethanol plant including waste nutrients and waste water. In addition, the algae plant uses the carbon dioxide from the corn ethanol plant to grow and thrive. Suddenly a product produced from a first generation ethanol plant with what amounts to negative value now has a tremendous positive value to a second generation plant. When people figure out that carbon from things such as a first generation ethanol plant has value, others will be on board, said Burns.

Years ago, Todd Becker, CEO of Green Plains Renewable Energy, said his company began looking for emerging technologies that could add value to his plant. These included adding things such as inedible corn oil extraction technology, but also the partnership with a second generation biorefinery that could utilize their plant’s waste streams. His company recognized the incredible partnership before any others and this fall his company along with BioProcess Algae will be building their algae farm, the last phase before they begin to produce commercial scale algae biofuels.

In the future, Becker and Burns both believe that every first generation biofuel plant will marry a second generation technology and with these marriages, the biofuels industry will rise to the challenge of producing billions upon billions of gallons of domestic renewable energy for America.

Learn more about the first biofuel marriage here: Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.

algae, biofuels, Domestic Fuel Cast, Environment, Ethanol

Book Review – Switching to Solar

Joanna Schroeder

I’m writing this post, sitting outside, overlooking a pool sparkling in the sunshine. OK, not really but it gets your mind in the right place – a sunny day. Solar energy has been gaining ground in both the U.S. and especially Europe so I thought it was high-time I learn more about the history of solar. “Switching to Solar,” by Bob Johnstone should become the industry and consumer reference to the worldwide solar story.

I have to admit that reading books on energy, environment and ag can be a bit dry regardless of the veracity of the information. But Johnstone broke the mold with his engaging story telling, compelling information and insights on the solar industry. It probably helps that he is a journalist, but he takes us through the history of solar weaving through Europe and taking a stop in Germany and coming back to the States – a country that was winning and now is losing, the solar technology race to countries overseas such as China.

There are several issues that are discussed in the book that are of special importance to the solar industry: rate of conversion, subsidies/tariffs, industry viability, legislation, and technology. He also talks about overcoming utility resistance to renewable energy and their adoption to both energy efficiency strategies and the adoption of renewable energy. Two areas he didn’t discuss in detail are the challenges with storage and transmission lines/ smart grid issues.

He writes, “For utilities, promoting energy efficiency was an unnatural act. Thus far, their entire rationale had been to encourage customers to use more energy, not less. their rate structure was designed to reward consumption, by charging customers less for the additional kilowatt-hours they used. Their domestic sales departments came up with promotional gimmicks to encourage usage. Utility salespeople gleefully handed out free hair dryers to their customers.”

See this ladies. It’s the utility companies’ fault that we’re contributing to global climate change with our old school hairdryers.Read More

book reviews, Electricity, Energy, Solar