NAT GAS Act Introduced

Joanna Schroeder

The propane industry is speaking out against a new bill introduced by backers of the Pickens Plan (aka T. Boone Pickens). The New Alternative Transportation to Give Americans Solutions Act (NAT GAS Act) would provide federal incentives for natural gas while excluding all other types of renewable energy. Supporters of propane autogas are upset and calling for federal legislators to stop cherry picking who will be the winners and losers in the alt energy race.

“If Boone and his team of lobbyists were serious about American energy security, they would include other American-made alternative fuels like propane autogas in their push for incentives,” said Autogas for America founder Stuart Weidie. “Natural gas is an abundant natural resource, but it’s not our only clean-burning alternative to gasoline and diesel. The NAT GAS Act doesn’t give Americans solutions; it crowns a single solution as the victor.”

According to Autogas for America, 90 percent of the propane autogas is produced in America. Of this percent, 60 percent is generated from domestic natural gas refining. The organization also says propane autogas is less expensive than gasoline or diesel. Customized fleets that are operating with the fuel, on average, see more than $1.00 per gallon savings as compared to their previous fuel.

Weide continued, “Our legislature should not manipulate the market by giving a special interest advantage to one solution. They should recognize that taxpayers want multiple clean-fuel options to reduce harmful emissions and replace oil imports with affordable, American-made energy. The NAT GAS Act is an example of legislative cherry picking, the kind of legislation that skews the natural selection process that otherwise enables innovation in a free market economy.”

ROUSH CleanTech, one of the companies that have deployed auto technologies to convert fleet vehicles to run on autogas is ready to support President Obama’s energy goals, but is also frustrated with the introduction of the NAT Gas Act.

“An important, strong national energy policy was outlined by President Obama and Secretary Chu last week that will dramatically increase the adoption of fleet vehicles powered by domestically produced alternative fuels,” said Joe Thompson, president of ROUSH CleanTech. “While we are supportive of all alternative fuels, we won’t be as successful in achieving the President’s vision if each industry introduces legislation that plays to their own agenda, like we saw with the introduction of the NATGAS Act.  Wouldn’t we find the most success with one piece of legislation supporting all domestically produced alternative fuels?”

Several announcements were made last week surrounding the “greening” of fleets. The Environmental Protection Agency (EPA) announced a streamlined certification process for aftermarket alternative fuel conversion systems that make it easier for companies to offer alternative fuel conversions for a broad range of vehicle makes and models. Also last week, the Department of Energy together with the White House announced the National Clean Fleets Partnership. This program highlights the need for fleets to adopt “advanced technology vehicles or ones that use alternative fuels, such as electricity, natural gas, biodiesel, ethanol, hydrogen, or propane.”

Natural Gas, Propane

Zotos Honored For Renewable Energy Use

Joanna Schroeder

More and more companies are moving to powering their manufacturing facilities and company headquarters with renewable energy. This week the EPA announced its Top 20 On-Site Generation List. This is a list of the organizations that are using the most on-site green power to energize their operations. The list is part of the Green Power Partnership. The winner was Kimberly Clark Organization who generates 7 percent of its electricity from biomass. Several cities in California made the top 20 including San Diego, San Francisco and San Jose. Also on the list: Wal-Mart and the U.S. Air Force.

Also on the list at number 18 was Zotos, a hair care brand. According to the EPA’s site, nearly 60 percent of the company’s electricity is generated from on-site wind energy. The reason Zotos stands out is while most companies purchase renewable power from electricity companies, they actually generated their power from wind turbines located right on their campus. According to the American Wind Energy Association, the Zotos Wind Project is considered one of the top on-site wind projects currently being undertaken by a manufacturing company in the United States.

“It was a  sizable investment to purchase the wind turbines, but it was a small price to pay when compared to the major benefits it creates for the community of Geneva, NY, and our environment,” says Anthony Perdigao, Zotos Chief Sustainability Officer.

With approximately 6.5 million kWh of electricity produced annually, the Zotos wind turbines will provide more than 50 percent of organization’s energy requirements and are expected to reduce overall CO2 emissions by 50 percent in 2011. Zotos’ energy goal is to utilize 100 percent renewable energy by 2012.

biogas, biomass, Electricity, Energy, Environment, Solar, Wind

USDA Report Changes Ethanol Corn Use Term

Cindy Zimmerman

USDA’s new supply and demand report makes a subtle, but significant, change in the way it reports corn use for ethanol, acknowledging for the first time the livestock feed produced as a by-product of ethanol.

USDA WAOB Instead of calling the usage category “ethanol for fuel” USDA has changed the wording to “ethanol & byproducts,” with a footnote reading “Corn used to produce ethanol and by-products including distillers’ grains, corn gluten feed, corn gluten meal, and corn oil.”

The Renewable Fuels Association said the change provides a better accounting for the fact that corn processed by ethanol facilities results in the production of both ethanol and animal feed. Historically, USDA has reported only the gross usage of corn for ethanol, implying that the ethanol process uses the entire bushel of corn for fuel production. “This has led to inflated claims that the ethanol industry is using “nearly 40%” of the 2010/11 corn supply, (but) when the production of animal feed co-products is taken into account, only 23% of the 2010/11 U.S. corn supply and 3% of the global grain supply is truly being used for fuel production.”

RFA notes that ethanol co-products have become a substantial component of the global feed market. “In 2010/11, the ethanol industry is expected to produce more than 39 million metric tons of animal feed, enough to produce 50 billion quarter-pound hamburgers—or seven patties for every person on the planet.”

corn, Ethanol, Ethanol News, RFA, USDA

USDA Announces Funding for Ethanol Blender Pumps

Cindy Zimmerman

During a press briefing, Agriculture Secretary Tom Vilsack today announced a USDA program will provide funding for installation of ethanol blender pumps to provide Americans with flexible fuel vehicle with more choices when they fill up. “This announcement is going to help expand the national biofuels industry and create jobs across the country,” said Vilsack.

USDAUSDA is issuing a rule to clarify that the definition of renewable energy systems in the Rural Energy for America Program (REAP) includes flexible fuel pumps, sometimes referred to as “blender pumps.” This clarification is intended to provide fuel station owners with incentives to install flexible fuel pumps that will offer Americans more renewable energy options. The Obama administration has set a goal of installing 10,000 flexible fuel pumps nationwide within 5 years.

“Flex-fuel pumps will give Americans a choice to purchase domestically produced renewable transportation fuels,” Vilsack said. “USDA’s energy programs are helping to build a clean energy economy, while creating green jobs here at home and making our nation more energy secure in the long-term.”

“Today there are more than eight million flex-fuel vehicles, cars and trucks that can run on a mixture of gas and up to 85 percent ethanol,” Vilsack said. “There are over 110,000 gas stations in the country today, but only 2300 of them provide E85 pumping and distribution systems.”

Vilsack was supposed to make the announcement from Gilbarco Veeder-Root, a flexible fuel pump manufacturing plant in Greensboro, North Carolina, but “given the discussions taking place in the nation’s capitol” with the potential for a government shutdown, Vilsack felt it was more important to stay in Washington. He did have a conversation with company officials about their ability to respond to increased demand for installation of new blender pumps.

Gilbarco, together with Dresser Wayne, are the two largest manufacturers of fuel dispensers in the U.S that offer blender pumps built to dispense a variety of ethanol fuel formulations.

Listen to or download Vilsack’s comments here: Secy Vilsack on Blender Pump Funding

Audio, blends, E85, Ethanol, Ethanol News, Government, USDA

Ethanol Industry Comments on WASDE Report

Cindy Zimmerman

The USDA World Agricultural Supply and Demand Estimate (WASDE) released this morning that shows corn ending stocks unchanged despite a 50 million bushel increase in corn use for ethanol also shows a gain in global grain stocks.

According to the report, global coarse grain supplies for 2010/11 are projected 6.3 million tons higher this month with a 1.8-million-ton increase in beginning stocks and a 4.5-million-ton increase in production.

Renewable Fuels Association LogoRenewable Fuels Association (RFA) VP of Research and Analysis Geoff Cooper says the report should ease some of the tension in the world corn market. “While stocks are still relatively tight, today’s report shows that the corn supply picture is not quite as bad as some were expecting. Corn stocks—both in the U.S. and globally—are a little more robust than the market was anticipating,” commented Cooper.

RFA CEO and President Bob Dinneen notes that global corn production is looking stronger than many were expecting. “In particular, production in South America and Africa has been robust. Farmers in countries like Uganda are responding to higher world prices by increasing production through the use of better technology and improved farming practices. Higher prices are allowing farmers in sub-Saharan Africa and other regions to participate in the world market and likely many of them are earning a profit on their crops for the first time in years,” he said.

Growth EnergyGrowth Energy CEO Tom Buis says the strong production in South America and elsewhere around the globe are disproving fears of food shortages. “Fear in the market that the carryout number would go down didn’t come to fruition,” said Growth Energy CEO Tom Buis. “Now there is still a lot of volatility in the market, based on rumors of increasing sales to China, excessive speculation and profiteering in the commodities market,” said Buis. “But this newest USDA report proves what we’ve been saying all along, which is that the productivity of American farmers and farmers worldwide will meet the challenge to provide more than enough corn to meet demand. American farmers are expected to produce the largest crop ever this year.”

Domestically, USDA left the estimate for the 2010-11 U.S. corn carry-out unchanged at 675 million bushels. The trade was expecting carry-out to be lowered to 595 million bushels (to reflect lower-than-expected March 1 stocks number). Some analysts were expecting a drop to as low as 515 million bushels.

corn, Ethanol, Ethanol News, Growth Energy, RFA

Protec Fuel and Indore Open 14th Atlanta E85 Station

Cindy Zimmerman

Indore Oil Company has joined forces with Protec Fuel in opening their fourteenth E85 fueling location for flex fuel vehicle (FFV) owners in the Atlanta area. The E85 station is located at the Chevron Food Mart in Duluth.

Indore Oil partnered with Protec Fuel to offer E85 through the group’s turnkey E85 infrastructure program. “We at Indore Oil Company are energized on the prospect of working with Protec to bring E85 to this Chevron,” said Mihir Patel, General Manager of Indore Oil Company. “Our relationship with Protec and our customers continue to grow as we bring more alternative fueling options throughout the Atlanta market together.”

“Protec Fuel is pleased to now supply fourteen Indore Oil stations with E85,” noted Protec Fuel’s managing member, Todd Garner. “Mihir and his team are proactive entrepreneurs. We look forward to working with them more in the future in assisting Atlanta drivers in finding convenient locations to fuel their vehicles with E85.”

E85, Ethanol, Ethanol News

USDA Raises Corn Use for Ethanol

Cindy Zimmerman

USDA’s latest World Agricultural Supply and Demand Estimate released this morning shows an increase in corn use for ethanol.

USDA WAOBU.S. corn ending stocks are unchanged this month as a projected increase in corn use for ethanol is offset by a reduction in expected feed and residual use. Corn used to produce ethanol is raised 50 million bushels as strong blender incentives and positive ethanol producer margins continue to encourage expansion in ethanol production and use. Rising gasoline prices have pulled ethanol prices higher helping to offset increases in corn feedstock costs for ethanol producers.

corn, Ethanol, Ethanol News, USDA

NBB Protests EU Extension of Tariffs on US Biodiesel

John Davis

European Union members have voted to extend current tariffs on U.S. biodiesel, and that violates the group’s own laws, according to the National Biodiesel Board.

This Reuters article posted on ForexPros.com says EU officials accuse U.S. exporters of smuggling biodiesel through Canada to avoid tariffs imposed since 2009:

“We think this would be a bad decision that runs directly counter to current EU law,” said Manning Feraci, vice president of federal affairs at the U.S. National Biodiesel Board, the country’s leading biodiesel industry group.

“We’re waiting to get final confirmation of the decision and will go from there.”

The fight over EU biodiesel duties, which sliced U.S. exports to less than a third of their 1.5 million tonne level when they launched in 2009, highlights the global race for a share of the world’s booming renewable energy market.

EU firms accuse U.S. producers of being involved in a “splash and dash” scheme, whereby they may import cheap biodiesel from countries such as Brazil and add less than 5 percent of U.S. diesel. The producers then qualify for a subsidy from Washington before exporting it to Europe.

The extension would start in May and last until 2014.

Biodiesel, International, NBB

Senate Hearing Focuses on Ethanol

Cindy Zimmerman

In the face of increasing unrest in the Middle East and higher gas prices, the Senate Committee on Energy and Natural Resources met this morning to review Department of Energy (DOE) biofuel programs and biofuel infrastructure issues.

In testimony before the committee, Renewable Fuels Association President and CEO Bob Dinneen stressed the importance of expanding the marketing for ethanol-blended fuels to meet the goals of federal Renewable Fuels Standard (RFS).

“At a minimum, federal policies should maintain and extend existing tax incentives for higher level ethanol blends to allow for continued growth, expand tax incentives for refueling infrastructure, and create new consumer-based tax incentives to encourage the purchase of FFVs,” Dinneen testified.

Read Dinneen’s testimony here.

Bill Brady, CEO of Mascoma Corporation and Chairman of the recently formed Advanced Ethanol Council, also testified before the committee on the need to make significant strides in the commercialization of advanced and cellulosic ethanol.

“The technologies are ready. Putting in place a consistent, long-term federal policy for advanced and cellulosic biofuels including significant focus on higher-blend ethanol infrastructure and FFVs is critical to continued development in the United States and its ability to continue to keep pace with clean energy investments of other countries,” Brady testified, urging Congress to maintain DOE’s authority and funding to provide renewable energy loan guarantees. “To cross the valley and start construction of projects in 2011, this loan guarantee authority represents the best available tool for many projects,” he said.

Read Brady’s opening statement here.

advanced biofuels, Cellulosic, Ethanol, Ethanol News, Government, RFA

Petroleum, not Biodiesel, Confirmed as Problem with Bioheat

John Davis

As I reported to you back on March 17th, it looks like a bad batch of petroleum, not the biodiesel, was the real culprit with some recent problems with bioheat (a mix of biodiesel and home heating oil) in the Northeastern United States.

This blog post from Biodiesel Magazine says testing has confirmed the petroleum’s role:

Paul Nazzaro, petroleum liaison to the National Biodiesel Board, shared with Biodiesel Magazine an excerpt from a detailed report prepared by members of the Bioheat Technical Steering Committee as it pertains to the New Hampshire fuel quality concerns expressed by regional fuel dealers. He said a more comprehensive report will be provided to industry leaders within the week.

“At a recent meeting of fuel dealers in New Hampshire, requests for fuel samples and burner nozzles or combustion parts with carbonaceous deposits were made, and several of these were obtained and sent to independent labs for analysis,” the excerpt stated. “The data generated indicate poor quality base heating oil is the likely root cause of the burner issues in New Hampshire, and that the presence of biodiesel as Bioheat was not likely a contributing factor to the problems. Base fuel instability is the likely cause. Fuel sampled from a delivery truck clearly indicates this. Equipment problems are ruled out. Problems occurred with all domestic burners and with all appliance types. Biodiesel is ruled out. There were no indicators of off-spec biodiesel, and problems occurred regardless of fossil-renewable carbon content.”

Nice to see that biodiesel was cleared. Now lets see if the retractions accusing the green fuel of the wrongdoing come as quickly as the charges against it.

Biodiesel, NBB