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LS9 To Test UltraClean Diesel, May Open Brazil Biodiesel Plant

Joanna Schroeder

LS9 has been making news with the announcement that they will collaborate with MAN Latin America to test their renewable diesel in both stationary engines and operational fleet vehicles in Brazil. The testing will cover performance, emissions, fuel consumption, and engine durability testing, as well as field testing of the company’s biofuel in Volkswagen trucks and buses.

“Our collaboration with MAN Latin America reinforces our commitment to producing cost-effective, high-quality biofuels and making renewable, sustainable biodiesel made from sugarcane and other renewable sugars widely available to global consumers,” said Ed Dineen, CEO of LS9. “Through this alliance, we intend to further demonstrate the high quality of our drop-in biofuels for the Brazil market, and to move closer to the commercialization of LS9 UltraClean Diesel.”

According to LS9 their UltraClean Diesel has been custom engineered to meet or exceed relevant diesel fuel standards while providing compelling economic and environmental benefits relative to petroleum diesel. The company also says their current fatty acid methyl ester (FAME) product has achieved the key parameters of B100 (100 percent biodiesel) – ASTM 6751 (United States), EN 14214 (European Union), and ANP 7 (Brazil) standards. LS9 believes its biodiesel overcomes several challenges inherent in first-generation biodiesel including a higher cost of production, poor oxidative stability and/or poor cold flow.

In other LS9 news, Bloomberg has reported the company is considering building Brazil’s largest biofuel and specialty chemical plant. While plans have not yet been finalized, current plans include a plant that could produce up to 200 million gallons of biodiesel and chemicals per year. This size plant would be two-thirds bigger than the country’s next largest facility.

“Brazil is going to be a focal point for us,” said Dineen in the Bloomberg article. “We envisage multiple production units there.”

He stressed that since the plans are not complete, the final plant could be smaller and the decision will be made based on feedstock availability and offtake interest. In addition, they are considering building a 75 million gallon per year plant that only produces biochemicals.

biochemicals, Biodiesel, biofuels, Brazil

The CEC Awards $29M to Advanced Biofuels Projects

Joanna Schroeder

I sometimes wonder what in the world California is thinking. I just wrote about Feinstein’s attack on biofuels in the state, yet today the state’s biofuels industry scored a victory when the California Energy Commission (CEC) announced the approval of more than $29 million for advanced biofuels projects. The CEC completed the first two years of its program funding cycle by awarding $29,675,072 to seven different projects through its Alternative and Renewable Fuel and Vehicle Technology Program (AB 118).

“This is a major milestone for our program because it means we have awarded all $175 million from the first two years of the AB 118 program, plus another $14 million from the 2010-11 funding cycle,” said Energy Commission Vice Chair James Boyd. “We have awarded more than 82 grants, public agency agreements and program support contracts totaling $189.4 million in AB 118 funding, leveraging more than $425 million in private match funding and creating or retaining about 5,600 jobs.”

The CEC estimates that the awards will infuse more than $44.5 million into the state’s biofuels industry and they estimate that the monies will create or retain 616 construction, engineering and management jobs over the next three years. The projects range from reducing petroleum consumption and greenhouse gas emissions to providing jobs through the advancement of biofuel technology to the installation of alternative fuel infrastructure aimed at fleets.

Awardees include:

  • Alameda-Contra Costa Transit District ($3,000,000 – Match Share $2,663,175) – AC Transit will construct a new hydrogen bus fueling station in Oakland.
  • Biostar Systems ($3,372,314 – Match Share $3,372,314)  – BioStar Systems is partnering with Sonoma County Water Agency and Sonoma County Transit to produce 148,000 cubic feet per day of pipeline quality biomethane from dairy waste and food processor waste to support the Sonoma County Transit natural gas fleet.
  • South Coast Air Quality Management District ($2,600,000 – Match share $6,000,000) – The South Coast Air Quality Management District and their numerous partners will install and upgrade 11 compressed natural gas (CNG) and liquefied natural gas (LNG) fueling stations throughout Southern California.
  • USA Waste of California ($489,040 – Match Share $1,051,021)  – USA Waste will upgrade a liquefied natural gas (LNG) station in the City of Corona (Riverside County) to add storage tanks, vaporizers and dispensers that will also add compressed natural gas (CNG) to their current LNG dispensing capabilities.
  • CR&R, Inc. ($4,520,501 – Match Share $18,166,460)  – CR&R estimates that this project planned for the City of Perris in Riverside County will produce 120,000 million BTUs of pipeline quality biomethane from nonrecyclable municipal waste using a two-stage anaerobic digestion process.
  • Pixley Biogas ($4,672,798 – Match Share $4,910,925)  – Pixley Biogas intends to build an anaerobic digestion facility in the community of Pixley (Tulare County) that will process more than 36 million gallons of manure from three nearby dairies and produce biogas to be used at the adjacent Calgren Renewable Fuels ethanol biorefinery.
  • High Mountain Fuels ($11,020,419 – Match share $11,020,419) – High Mountain Fuels intends to convert renewable landfill biomethane to liquefied natural gas for use as transportation fuel at the Simi Valley landfill facility in Ventura County.
advanced biofuels, biofuels, biogas, biomethane, Compressed Natural Gas (CNG), Hydrogen, Liquefied natural gas (LNG)

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