Book Review – Energy Myths & Realities

Joanna Schroeder

This week I decided to bone up on some energy 101 so I read “Energy Myths & Realities” by Vaclav Smil, an energy scientist. He discusses eight myths and attempts to set the record straight by disseminating the true facts around the issues. He believes several of the myths have been mired in the past while others are perpetuated by the media.

For example here is one myth that he demystifies: Electric cars will replace conventional cars in the near future. The reality according to Smil: Electric cars are expensive, their adoption rate will be slow, and internal combustion engines will dominate the market for decade to come. He also believes that EVs will not provide much, if any, energy savings.

So why does it matter if there is discourse among energy advocates? Because, says Smil, these incorrect facts and fallacies are hampering the development of effective new energy policies and wasting time and money that could be better used in pursuit of a constructive, scientific approach to the global energy challenge.

Here are some other myths that Smil addresses, all dished up as solutions, or part of a solution for our energy woes.

• The world will soon run out of oil.
• Carbon sequestration is the solution to global climate change.
• Ethanol will replace gasoline as a significant source of automobile fuel.
• Wind power will soon become the world’s leading source of electricity.

I’ll play my hand here and agree with Smil that carbon sequestration is not a solution. In fact, I believe it is a multi-billion dollar farce. Yet where I diverge with Smil is while he believes various forms of alternative energy should have no role, or will only play a small role, I think it’s shortsighted to ignore parts of the energy portfolio that are right in front of us. But I digress.Read More

algae, biofuels, book reviews, Electric Vehicles, Energy, Wind

Don’t Mess with the RFS

Joanna Schroeder

The U.S. biofuels industry sent a message to Congress today asking them not to mess with the RFS. Specifically, the industry encouraged lawmakers “to stand firm in the face of calls to waive or repeal the groundbreaking biofuels provisions included in the Energy Independence and Security Act of 2007 (EISA), including the Renewable Fuels Standard (RFS).”

Several biofuel organizations came together to sign the letter including Michael McAdams, president of the Advanced Biofuels Association; the Honorable Jim Greenwood, president and CEO of the Biotechnology Industry Organization; Bob Dinneen, president and CEO of the Renewable Fuels Association; Brooke Coleman, executive director of the Advanced Ethanol Council; and Brian Jennings, executive vice president of the American Coalition for Ethanol.

The letter, delivered to Rep. Fred Upton (R-MI), chairman of the House Committee on Energy and Commerce, was in response to several current proposed bills and amendments that hinder or help the domestic biofuels industry. Also targeted was ranking member Rep. Henry Waxman (D-CA) as well as U.S. Sen. Barbara Boxer (D-CA), chairman of the Senate Committee on Environment and Public Works and its ranking member, U.S. Sen. James Inhofe (R-OK).

The message to Congress remained the same and stressed that the biofuels industry is creating jobs, helping to reduce America’s dependence on foreign oil and is a strong contributor to the nation’s economy, providing $53 billion. A recent report found that additional job creation from advanced biofuels production under the RFS could reach 807,000 by 2022. The letter also stressed that the industry is “committed to ensuring the U.S biofuels policy is implemented in a way that builds upon current technologies and fosters the development of new ones.”

The letter also expressed that “calls to reduce, waive or eliminate the RFS would send a chilling signal to markets at time when dozens of new biofuels technologies are traversing the so-called “Valley of Death” to first commercialization.” More capital investments are needed to bring biofuel technologies to commercialization.

A full copy of the letter can be found here.

Biodiesel, biofuels, Cellulosic, Ethanol

New E85 Station Opens in Redwood City, CA

Joanna Schroeder

A new E85 station has opened in Redwood City, California, the hometown of Propel Fuels. As gas prices remain high, more and more California motorists are moving to renewable fuels to fill their tanks. This is just one of many E85 stations that Propel plans on opening in the Bay area (San Francisco). In an event to officially open the station, Redwood City Mayor Jeff Ira was on hand along with Jack Broadbent, Executive Officer of the Bay Area Air Quality Management District. Also showcased was the latest in renewable fuel vehicle technology from General Motors and Mercedes-Benz.

“Propel is a perfect example of the type of company we’re looking to attract here in Redwood City,” said Mayor Jeff Ira. “We’re very proud to be the home of such a forward-looking company that is poised to do great things for the economy and environment in California.”

Broadbent added, “Motor vehicles are the largest source of air pollution in the Bay Area. Carpooling, keeping your car tuned, and using lower-carbon fuels is something many drivers can do now to help reduce air pollution.”

Propel is the leading retailer of E85 and biodiesel on the West Coast. The company operates its Clean Fuel Points (stations) throughout California and Washington State, with more than 75 sites planned across California within the next year. In California, there are more than 1 million flex-fuel vehicles and nearly 20 million across the U.S.

“People feel powerless in the face of rising gas prices. Beginning today, we’re providing drivers on the Peninsula something they’ve never had – true choice at the pump. We’re offering a way to make progress towards reducing our nation’s dependence on petroleum fuel and the carbon emissions from our vehicles,” said Matt Horton, CEO of Propel.

Propel’s newest station is co-located at the Redwood City Valero station at 503 Whipple Avenue (at the intersection of Whipple Avenue and Veterans Boulevard) in Redwood City. As part of the opening celebration on May 17-20, Propel will provide Redwood City drivers and fleets ten dollars of free E85 Flex Fuel or Biodiesel. The free fuel promotion encourages local drivers to experience filling with clean, quality certified, renewable fuels.

Biodiesel, E85, Ethanol

App Use Strong On Smartphones

Chuck Zimmerman

According to our latest ZimmPoll you’re using lots of apps on your smartphones. Well, at least some of you are. Over a third of our respondents said they have more than forty apps on their smartphone. That was followed though by another third who said they only have zero to ten apps. Seventeen percent said they have 20 to 30 apps, thirteen percent said 10 to 20 and five percent said 30 to 40 apps. That’s a lot of apps! It’s amazing how useful these devices are becoming and apps are what make that possible.

Our new ZimmPoll is now live. We’re asking the question, “Will USDA forecast for record 13.5 billion bushels of corn come true?” There’s been a lot of flooding and cool weather in the corn belt this spring. How much do impact will that have? Let us know what you think and thank you for participating.

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

ICM Files for Corn Oil Separation Patent

Joanna Schroeder

ICM has announced the company has filed for a non-provisional patent application with the U.S. Patent and Trademark Office (USPTO) and an international patent application under the Patent Cooperation Treaty (PCT) with the U.S. as receiving office. The patent will cover ICM’s newest development to its Advanced Oil System, a corn oil extraction technology. Also filed was a petition to request participation in the USPTO’s “Green Technology Pilot Program” that encourages accelerated examination and issuance for “green” technologies.

ICM says their Advanced Oil System solves some of the current yield issues with corn oil extraction technologies due to emulsification, an industry wide challenge to achieving consistent high oil recovery rates. The company’s improved technology delivers a much higher conversion rate than currently possible with first-gen technologies. The Advanced Oil System consists of separate skid mounted units that can be installed at plants without oil extraction technology, or as an add-on to plants that already have invested in ICM’s first generation corn oil extraction equipment. They are deploying their first commercial Advanced Oil System at an ICM-designed 110 MGY ethanol plant. The system was commissioned last week and in operation.

Chris Mitchell, Executive Vice-President of ICM said, “We have focused our efforts on developing solutions that deliver quick payback and ongoing value-added co-product streams to the renewable energy industry. We believe our competitive advantage comes from providing our customers with a competitive advantage of their own—the highest-yielding and most reliable oil separation technology available.”

The Advanced Oil System design and method falls outside of all patent claims of GreenShift Corporation’s patent, according to Brian Burris, general counsel for ICM. “Our patent pending system does not separate oil directly from the concentrated thin stillage. ICM’s system implements special processing to release oil from an emulsion concentrate, which results in a higher recovery of corn oil from the ethanol process.” ICM now has two differentiated solutions that allow the operator to control the quantity of oil removed from the process: the Tricanter Oil Separation System and the Advanced Oil System.

Company Announcement, corn, Ethanol

Algae Waste Water, Ag Runoff Projects Underway in Europe

Joanna Schroeder

OriginOil, Inc. and its French partner Ennesys have confirmed they are working with various institutions to develop two separate large-scale algae projects. Global 500 Multinational Bouygues Construction has engaged Ennesys to study the integration of waste water algae production in two building projects in the Greater Paris region both at the scale of a million square feet (80,000 m2 and 150,000 m2). The algae produced will be converted to fuel, electricity and industrial chemicals. The project, in part, was spurred by France’s RT 2020 sustainable energy law that calls for all major buildings to have a positive energy balance by the year 2020.

“Europe and France have made unconditional sustainability commitments, and this is driving fast-moving commercial algae projects for us in France,” said Riggs Eckelberry, OriginOil CEO. “We are committed to supplying our technology, know how and integrated supplier network to help Ennesys get these projects up and running quickly.”

The second project will focus on marine fuel applications. ITSASOA is collaborating with Ennesys on a plan to absorb agricultural runoff using algae that will then converted to fuel for fishing vessels. ITSASOA is an advanced biofuels program financed by the Ministry of Agriculture and Fisheries and the European Union.

“Algae in France has taken off with the new eco-building law that forces large developers to innovate without delay on their new projects,” added Pierre Tauzinat, Ennesys president. “Due to its many benefits, algae is more productive than solar panels, and will generate continuing jobs here in France. That’s a huge benefit over solar, which is often manufactured in other countries and generates few jobs once installed.”

algae, biofuels, Company Announcement, International

KiOR Breaks Ground, Signs FedEx

Joanna Schroeder

KiOR has had a busy week. They recently announced a ground fuel supply agreement with FedEx. Under the agreement, KiOR will supply renewable diesel blendstocks for purchase by affiliates of FedEx Corporate Services. This is the company’s first end-user agreement. The oil will be produced at the company’s first commercial production facility in Columbus, Mississippi that is scheduled to go online in the second half of 2012. KiOR has broken ground on the plant, and when in production will convert 500 tons of biomass a day into 11 million gallons of oil.

“We are excited to be working with a premier transportation company like FedEx,” said Fred Cannon, KiOR’s President and CEO. “This agreement with the services company of direct end users is another step toward delivering our fuel blendstocks to the market.”

In addition to the agreement with FedEx, KiOR also has an agreement with the Hunt Oil Refinery in Tuscaloosa, Alabama and Catchlight Energy, a joint venture between Weyerhaeuser and Chevron to provide oil. The oil can be processed at a refinery or used directly by cars, once the oil is refined into gasoline and diesel at the Columbus facility. This announcement was highlighted by Gov. Haley Barbour during a ceremonious groundbreaking ceremony.

The biorefinery has received local investments of $190 million and statewide more than $500 million. Once the first plant is complete, KiOR has plans to add four more sites, two in Mississippi and two with undetermined locations.

“This is an unbelievable accomplishment, and it’s a game changer for our country,” said Barbour.

Cannon added during the groundbreaking, “Every gallon or barrel of fuel we make in Columbus is a gallon or barrel of fuel we don’t have to import from another country, some of which don’t like America very much.”

biofuels, green diesel, Oil

DuPont’s Bid for Danisco Successful

Joanna Schroeder

It’s official. DuPont is now the owner of Danisco. The successful completion of the purchase occurred on May 15, 2011 with the tender offer for all outstanding shares of common stock for Danisco for DKK 700 cash per share. The tender offer expired on May 13, 2011, at 11 p.m. CEST (5 p.m. EDT) and DuPont estimates that at that time, Danisco shareholders had tendered approximately 92.2 percent of outstanding shares to DuPont Denmark Holding ApS. Many of you may be familiar with the DuPont Danisco Cellulosic Ethanol project (DDCE). The DDCE project currently has a 250,000 gallon demonstration plant near Vonore, Tennessee up and operating with the goal of having a commercial scale plant in operation by 2013, most likely in Iowa.

“We are delighted that the tender has been successful and we can move on to the process of integrating Danisco into DuPont,” said DuPont Chair & CEO Ellen Kullman. “Danisco’s attractive specialty food ingredients businesses and Genencor’s leading industrial enzymes complement DuPont’s own Nutrition & Health and Applied BioSciences offerings. This combination will create an industry leader in industrial biosciences and nutrition and health.”

Ellen continued, “These businesses will work together to drive sustainable growth and market-driven innovation by linking agriculture, nutrition and advanced materials through industrial biosciences. In addition, the R&D combination of DuPont, Danisco and Genencor will enable us to further respond to global megatrends and help provide for the food, energy and protection needs of a growing population.”

Danisco Chairman Jorgen Tandrup added, “We are very pleased that a vast majority of Danisco shareholders have accepted DuPont’s offer, and the two companies may now begin to move forward together. DuPont and Danisco share cultures based in exceptional science and research capabilities. Our combined strengths in biosciences and nutrition and health will deliver innovative new offerings for customers worldwide, while helping to grow these businesses in ways that will benefit employees, shareholders and the communities in which we serve. We look forward to this next exciting chapter of discovery and success for the joined companies.”

Agribusiness, biofuels, Cellulosic, Company Announcement

ZeaChem Secures Biorefinery Feedstock Contract

Joanna Schroeder

It is a wood to biofuels kinda day today. ZeaChem has announced they have signed an agreement with GreenWood Tree Farm Fund (GTFF), managed by GreenWood Resources (GWR), to supply hybrid poplar woody biomass for its first commercial cellulosic biorefinery. The woody biomass is in close proximity to the proposed plant and when the plant goes into production, ZeaChem will combine the woody biomass with other local agricultural residue for feedstock costs the company believes will be 50 percent less than Brazilian sugarcane and 80 percent less than corn. ZeaChem’s first commercial biofuels plant will be located in Boardman, Oregon and when in production, will produce 25 million gallons per year (GPY).

“This landmark feedstock agreement represents a major milestone on the road to developing ZeaChem’s first commercial production facility and to become the world leader in low cost production of advanced biofuels and bio-based chemicals,” said Jim Imbler, president and chief executive officer of ZeaChem.“We are proud to have GreenWood Resources, a leading supplier of economical and sustainable cellulosic feedstock, as a partner in our commercial operation. The model we have developed provides a significant strategic advantage and is something that GWR and ZeaChem will seek to replicate around the world.”

With this agreement in place, ZeaChem now has 100 percent of its feedstock needs secured for its commercial plant. Today ZeaChem is constructing a 250,000 GPY demonstration facility at the same location that is expected to be online this year and GTFF is supplying the feedstock for this project as well. The company says hybrid popular trees are an excellent cellulosic feedstock because they have a high yield per acre, short rotation and the ability to regenerate after harvest.

Jeff Nuss, President and CEO of GreenWood Resources added, “This agreement with ZeaChem is a significant step for GTFF and for GreenWood Resources into new markets and end-uses that closely align with our sustainability goals. We believe that hybrid poplars are the ideal feedstock for advanced biofuels and bio-based chemicals and look forward to continuing to grow with ZeaChem.”

biofuels, feedstocks

New Study Assesses Wood For Biofuels

Joanna Schroeder

Wood waste has been one of the feedstocks most studied for viability as a biofuel. Today a new study evaluates the promise of wood waste biofuels by reviewing 12 technologies and 36 projects that convert wood to fuels including ethanol, butanol, diesel, gasoline, and jet fuel. This particular area of research has garnered strong public and private investment and drop-in fuels projects even more so. Yet according to Forisk Consulting and the Schiamberg Group, the authors of the “Transportation Fuels from Wood: Investment and Market Implications of Current Projects and Technologies,” biofuels derived from wood waste will fail to substantively contribute to the Renewable Fuels Standard (RFS2) either this year or through 2022.

According to co-author Dr. Bruce Schiamberg of the Schiamberg Group, major technical hurdles will disrupt commercialization for the majority of the technologies. The study finds an on average 11 year gap between estimated commercialization and actual full-scale production. However, the report says a promising approach of note is gasification technology under development from companies such as Rentech and ClearFuels whose goal is to produce drop-in diesel or jet fuel. In addition, the report highlights technologies from INEOS New Planet, Rappaport Energy and Coskata, and Kior who are pursuing producing biofuels with a combination of gasification and microbes, and catalytic fast pyrolysis.

The report also looked at the impact of biofuel development on US timber markets and found that they would be minimal with the highest potential for wood waste coming from Alabama, California, Michigan, Mississippi, and Tennessee.

“If all projects succeed, the total impact on wood raw material markets peaks at 8.8 million dry tons per year by 2030,” said co-author Ms. Amanda Lang, Managing Editor of Wood Bioenergy US. This represents just over 3 percent incremental wood use relative to the existing forest products industry.

Co-author Dr. Brooks Mendell added, “Ultimately, investors must think hard about allocating capital to projects that require 10+ years of technological development and rely on EPA renewable fuel mandates, which are essentially moving targets.”

biobutanol, biofuels, biojet fuel, Ethanol, feedstocks, Research