Ethanol Attacks in California Continue

Joanna Schroeder

Policymakers in California are once again attacking its ethanol industry. Led by California Senator Dianne Feinstein (D-CA), she has plans in the works to limit incentives for production and use of biofuels that would cause taxes to be raised, an increase in use of foreign oil, reduce jobs, and increase pollution. According to the California Ethanol Vehicle Coalition (CEVC), Sen. Feinstein has “long harbored what many observers feel is an irrational vendetta against ethanol.” This despite the fact that the state consumers 20 percent of the nation’s gasoline and more than 60 percent of the gas comes from imported oil.

Feinstein’s goal is to reduce, if not end, California’s as well as the country’s use of corn-based ethanol. On a national level she co-authored legislation that ended support for current ethanol programs. Less than two weeks ago, the Senate came to a compromise to end ethanol incentives via the Ethanol Reform and Deficit Reduction Act, sponsored by Feinstein, John Thune (R-SD) and Amy Klobuchar (D-MN). The compromise included an end to the ethanol tariff as well as to the Volumetric Ethanol Excise Tax Credit (VEETC) that gave the ethanol blender of record a 45 cent incentive to blend the fuel. Should the house pass the same measure, it would take effect on July 31, 2011.

The California Senator’s ire is not limited to corn-based ethanol, although the California Ethanol Producer Incentive Program is under fire and she is lobbying to increase gas taxes and ethanol blended fuel taxes in the state. In addition, she is gunning to limit funds dedicated to building biofuel infrastructure including the installation of E85 or blender pumps. If this isn’t enough, she is also attacking incentives for cellulosic and algal biofuels.

One industry that would suffer a dramatic setback should the federal legislation be signed into law, are those retailers who sell E85 (eighty five percent ethanol, 15 percent gasoline). In California, the 50 plus retailers who sell E85 are looking at shutting off the pumps because they won’t be able to sell the fuel at competitive prices.

“If you were trying to stifle biofuel technology, increase reliance on imported oil, eliminate jobs, and increase pollution, you could not have done a better job than this,” said Joe Irvin, executive director of CEVC. “Senator Feinstein continues to talk about saving taxpayers money when she just pushed through this $1.1 billion increase in the federal fuel tax to California consumers by raising tax on ethanol blends from $13.6 cents to 18.1 cents.”Read More

algae, biofuels, Cellulosic, Ethanol, Legislation, Opinion

Petaluma, CA Home to New Solar System

Joanna Schroeder

Labcon North America, a company that specializes in manufacturing earth friendly laboratory products, announced today the completion of a $3.3 million, 800 kilowatt (kW) rooftop solar panel system. Over 2,500 solar panels were installed on the company’s 125,000 square foot building, taking up nearly half the roof. Now complete, the solar energy generated should provide nearly 30 percent of Lebcon’s energy needs. The project took 7 months to complete, and in addition to the solar panel installation, included improvements to power routing systems.

“At Labcon we place a high value on being a responsible manufacturer and considerate member of our community,” said Jim Happ, President of Labcon North America. “By installing one of the largest solar projects in Sonoma County [California], we are helping the environment while reducing our energy costs and helping reduce the carbon footprint of our products.”

Based in Petaluma, California since 2003 (Petaluma is most famous for the movie American Grafitti), the company received its project funding from U.S. Bancorp Equipment Finance, and partnered with SunPower for the installation. This project was just one the company has undertaken to become more environmentally sustainable.

“We chose SunPower as our panel supplier, because we wanted to work with a company based in the United States,” added Happ. “SunPower has been an excellent partner, helping us meet our sustainability goals.”

Electricity, Energy, Solar

Farmers Participate in Rural Champions of Change

Joanna Schroeder

Last week leaders from rural communities met with President Obama along with Agriculture Secretary Tom Vilsack, as well as the president’s Domestic Policy Adviser Melody Barnes as part of the White House Rural Champions of Change roundtable. One of the attendees was Eric Rund a farmer from Pesotum, Illinois. He is also the CEO of Green Flame Energy. He was one of 18 people from 16 different states who were invited to share their ideas on how the country can improve the quality of life in rural communities and promote economic growth.

“I was honored to be selected for the Council and have the opportunity to share with national policy makers what biomass production can do for farmers, rural communities, job creation and energy independence,” said Rund. “I invited the President to visit my farm to see first-hand what we’re doing to create change.”

Rund has been an early adopter when it comes to biomass research. He is actively developing biomass markets and has been working with local home owners, community school districts and businesses to educate them on how they can utilize biomass energy produced by local farmers.

The meeting Rund attended was just one in a series of meetings being held in DC this summer as part of the White House Rural Council and the White House Business Council to improve economic conditions and create jobs in rural communities. Champions of Change recognizes Americans who are accomplishing great achievements in their communities to out-innovate, out-educate and out-build the rest of the world.

Agribusiness, bioenergy, biofuels, biomass

Biomass Demand in Europe to Reach 44% by 2020

Joanna Schroeder

According to a new report released today in the European Biomass Review, and conducted by RISI, lignocellulosic biomass demand will reach 44% between 2010 and 2020. This increase in biomass need will be spurred by renewable energy policy. The majority of the biomass will be used in the energy sector, but will also be used in industrial and residential sectors.

The report highlights the potential of biomass production and aims to identify where the biomass may come from including forest and agricultural residues and energy crops. However, despite availability, one key to success, says the report, is the ability to mobilize, or harvest, transport and store the biomass. The report lays out three scenarios for mobilization of new biomass sources by 2020, based on various regions. In addition, a cost-curve analysis for each region and each scenario illustrates the implications for biomass pricing and imports.

According to RISI, lignocellulosic biomass is currently the largest renewable energy source (RES) although wind, solar and geothermal are rapidly developing. Therefore, the study also analyzes the economics of biomass versus other RES’s using macro demand drivers and the National Renewable Energy Action Plans (NREAPs) to forecast biomass demand by sector through 2020.

“The NREAPs offer insights into how governments plan to meet the renewable energy targets by 2020,” said Glen O’Kelly, author of the study. “But forecast biomass demand is based on announced investments, carbon costs and the relative economics of biomass, as well as an analysis of macro drivers: forecast GDP, population, household energy use, forest industry production – all considered in this study.”

The European Biomass Review covers EU27 countries as well as Norway and Switzerland with six regional designations including North, West, East & South Europe, UK, and Ireland.

biofuels, biomass, Research

Report Finds “No Strict Food Versus Fuel Tradeoff”

Cindy Zimmerman

A new report from Informa Economics released today concludes that ethanol production is not causing a “strict food-versus-fuel tradeoff” that automatically drives consumer food prices higher.

InformaThe report, which was prepared for the Renewable Fuels Foundation, is an historical analysis of corn, commodity and consumer prices from 1985-2010. One of the key findings of the study was that no single factor has been responsible for higher consumer food prices over time, “but rather, there is a complex and interrelated set of factors that contribute to food prices.”

The report also found that other supply and demand factor besides ethanol, such as increased exports, have also contributed to the rise in the commodity price for corn. “Furthermore, corn prices have a relatively weak correlation with food prices, as the farm share is a relatively small portion of the overall retail food dollar and for many products corn is only a portion of the farm value,” said report author Bruce Scherr, CEO and Chairman of Informa Economics.

“Yet again, sound analysis has demonstrated that the farcical food-versus-fuel debate is just that – a joke,” said Renewable Fuels Association President and CEO Bob Dinneen. “Unfortunately, the effort to scapegoat ethanol in order to continue our addiction to imported oil is not funny. The fact remains that no statistical evidence exists demonstrating a significant link between ethanol, corn prices, and rising food costs.”

Ethanol, Ethanol News, food and fuel, Food prices, RFA

Is Europe’s Biodiesel Industry in Jeopardy?

Joanna Schroeder

Europe’s $13 billion biodiesel industry could be in jeopardy according to an article published by Reuters that claims that the European Union (EU) plans to tackle unwanted side effects of biofuel production. The turn-about in support of biodiesel has been in part spurred by fear over climate change and several recent papers leaked from the European Commission that purport that biodiesel’s indirect impacts cancel out the majority of its benefits.

As the EU looks to increase current biodiesel use from 3 percent to 10 percent by 2020, they are also concerned that such a move would increase environmental damage rather than reduce environmental concerns. Their own analysis concludes that a 10 percent biodiesel mandate could lead to “an indirect one-off release of around 1,000 megatonnes of carbon dioxide — more than twice the annual emissions of Germany.” In addition, one report concludes that more use of biofuels could “squeeze food supplies and increase global hunger.”

The studies to which Reuters is referring have not been released by the European Commission and the authors surmise it is because it would “have significant implications for the existing EU biodiesel industry.”

These negative impacts could include a reduction of investments in plants and infrastructure. It could also cause a reduction of biodiesel use, rather than what the country has been aiming for since 2003, an increase in biodiesel use.Read More

Biodiesel, biofuels, Indirect Land Use, International, Opinion

UNICA Supports End of Ethanol Tariff

Joanna Schroeder

Earlier this week, the Senate compromised on some ethanol legislation that would eliminate the ethanol blenders tax credit (VEETC) at the end of this month. The agreement also eliminates the ethanol tariff on July 31, 2011, five months ahead of the original expiration date of December 31, 2011. The bipartisan Ethanol Reform and Deficit Reduction Act was submitted by U.S. Senators John Thune (R-SD) and Amy Kobuchar (D-MN) and sought to transition to a more sustainable model of renewable fuel incentives.

The Brazilian Sugarcane Industry Association (UNICA) was pleased with the news and has been lobbying for several years to eliminate the ethanol tariff. Brazil eliminated its ethanol tariff early last year. Leticia Phillips, UNICA’s representative in North America said, “As the world’s top producers of ethanol, the U.S. and Brazil should lead by example in creating a free market for clean, renewable energy.”

Phillips noted that last month, the U.S. Senate voted to end ethanol subsidies and UNICA looks forward to continue to work with Congressional leaders to accomplish that goal.

“We thank Senator Feinstein for her leadership on this important issue and urge Congress to pass it as soon as possible,” continued Phillips. “Ending the 30-year-old tariff on imported ethanol will help lower fuel prices and provide Americans with greater access to clean and affordable renewable fuels like sugarcane ethanol.”

She concluded, “Consumers win when businesses have to compete in an open market, because competition produces higher quality products at lower costs. The same principle holds true for renewable fuels. Allowing other alternative fuels like sugarcane ethanol to compete fairly in the U.S. will save Americans money, cut dependence on Middle East oil and improve the environment.”

Ironically, earlier this week Bloomberg reported that the Brazilian government is considering lowering the country’s ethanol requirement from 25 percent to 18 percent due to several back-to-back reduced sugarcane harvests.

Brazil, Ethanol, Legislation, UNICA

Solar Powered EV Charging Station Debuts

Joanna Schroeder

Mitsubishi Electric & Electronics USA along with Mitsubishi Motors of North America (MMNA) has debuted an electric vehicle (EV) solar-powered charging station at its MMNA headquarters in Cypress, California. This is the city’s first of its kind EV charging station and the debut signals the company’s commitment to developing and launching its first plug-in electric vehicle, the Mitsubishi i in all 50 states. The EV will be available this November. The charging station is powered by 96, 175W photovoltaic modules produced by Mitsubishi Electric. The solar panels are made with 100 percent lead-free solder, and according to the company, have one of the higher sunlight-to-energy conversion ratios in the industry.

The EV charger is able to charge up to four PHEV’s simultaneously and features three types of chargers with different voltages: standard level 1 (110v) will fully charge an EV in 22 hours; level 2 (220v) that can fully charge an PHEV in six hours; and level 3 CHAdeMO Quick Charger that can charge the battery up to 80 percent in 25 minutes.

“This project will build awareness of solar power’s versatility and efficiency,” said Katsuya Takamiya, president and chief executive officer, Mitsubishi Electric & Electronics USA. “As electric vehicles’ popularity grows, we expect to see more charging stations at large employers, automobile dealerships, shopping centers and schools, where cars can charge while people work, shop or study.”

The DC Quick Charger used for the Cypress charging station is manufactured by Eaton Corporation, and is the first-of-its-kind CHAdeMO Quick Charger certified for U.S. sale and public utility. Mitsubishi hopes that consumers who purchase the Mitsubishi i will use the charging station as gateway charging pad when commuting between Los Angeles and Orange Counties.

Mitsubishi Motors North America President Yoichi Yokozawa added, “We hope that our dealers, learning institutions, and municipalities will look to this technology with a keen eye towards the future, and bear in mind that the gradual acceptance of the pure-EV transportation will be aided by increasing the number of facilities like this one.”

Electric Vehicles, Solar

Spain’s First Wave Power Plant Goes Online

Joanna Schroeder

Spain’s first wave power plant has gone into production in the Basque seaport of Mutriku, located between Bilbao and San Sebastian. The Mutriku wave power plant, consisting of 16 units, will generate an estimated 300 kilowatts in power, enough electricity to supply 250 homes. Utility Ente Vasco de la Energia (EVE) inaugurated the wave power plant today in a special event.

“The rising global demand for green energy proves to be a strong catalyst for the implementations of innovative forms of renewable energy,” said Dr. Roland Muench, Chief Executive Officer of Voith Hydro Holding who provided the equipment for the wave power plant. “The Mutriku project shows: Our wave power technology is commercially viable and ready for wide deployment on the global markets. To further this development, adequate feed-in-tariffs for wave power, as they already exist for a number of renewables, can now set the right legal framework.”

According to Voith Hydro, its wave power technology can be deployed in both new and existing breakwater as well as in purpose-built structures. The company says its oscillating water column (OWC) technology is the only one that has been successfully proven with regard to commercial utilization. The company has been operating the Limpet wave power plant on the Scottish island of Islay for more than a decade and the plant has been running for more than 65,000 grid-connected hours.

It is estimated that worldwide potential of ocean energies is 1.8 terawatts and today still remains largely untapped.

Electricity, Energy, Hydro

Salt Loving Microbe May Aid Biofuel Production

Joanna Schroeder

Researchers from the U.S. Department of Energy (DOE) Joint Genome Institute (JGI) and the Joint BioEnergy Institute (JBEI) at DOE’s Lawrence Berkeley National Laboratory are trying to discover salt-loving organisms that may be more efficient in treating biomass and improve sugar yield for biofuel production. The class of solvents known as ionic liquids, are liquid forms of salt that will inactivate enzymes by interfering with the folding of polypeptides—the building-blocks of proteins. These solvents are useful for breaking down biomass; however, they can also hinder the ability of cellulases used to produce sugars after pretreatment.

To break this code, the researchers are turning to those found in the complete genome sequences of halophilic (salt-tolerant) organisms. As a test of this bioenergy-related application of DNA sequencing and enzyme discovery, researchers led by the Director of the DOE JGI, Eddy Rubin, and the Vice-President of the JBEI Deconstruction Division, Blake Simmons, employed a cellulose-degrading enzyme from a salt-tolerant microbe that was isolated from the Great Salt Lake.

The microbe in question, Halorhabdus utahensis, is from the branch of the tree of life known as Archaea. It was isolated from the natural environment at the Great Salt Lake and sequenced as part of the Genomic Encyclopedia of Bacteria and Archaea (GEBA) project. The researchers believe that salt -tolerant enzymes may offer significant advantages over conventional enzymes. They can tolerate high temperatures and are resistant to ionic liquids.

“This is one of the only reports of salt-tolerant cellulases, and the only one that represents a true ‘genome-to-function’ relevant to ionic liquids from a halophilic environment,” said Simmons. “This strategy enhances the possibility of identifying true obligatory halophilic enzymes. This project has established a very important link between genomic science and the realization of enzymes that can handle very demanding chemical environments, such as those present in a biorefinery,” said Simmons.

Results of the study were published June 30, 2011 in Green Chemistry. The next step is for the research team to expand this research to develop a full complement of enzymes that are tailored for the ionic liquid process technology. Their ultimate goal is to demonstrate a complete biomass-to-sugar process, one they hope can enable the commercial viability of advanced biofuels.

advanced biofuels, biofuels, biomass, Research