ACE Conference 2026

Iowa Biodiesel Board Applauds Iowa Biodiesel Bill

Joanna Schroeder

As reported yesterday by Cindy, there was big news in Iowa for the biodiesel industry. The state passed one of the most comprehensive biodiesel fuel policies in the U.S. that creates a system that incentivizes local production, encourages availability of biodiesel at the pump, and invests in the infrastructure needed for wide distribution. The renewable energy bill is known as Senate File 531 and was passed by a vote of 48-1.

Daniel Oh, COO of the Renewable Energy Group (REG) based in Ames, Iowa said, “REG applauds the members of the Iowa House and Senate for their strong support of the Iowa biodiesel industry. Approval of this bill by the Governor would make biodiesel more available to Iowans and reduce our nation’s dependence on imported petroleum. Additional consumption of biodiesel by Iowans supports our state’s green-collar workers and agricultural producers.”

“REG is committed to being a reliable supplier of high quality biodiesel throughout the supply chain and we look forward to continuing to partner with retail diesel locations, farmer-owned cooperatives and petroleum refiners to make Iowa a biodiesel utilization leader,” added Oh.

According to the Iowa Biodiesel Board the bill will do the following:

  • • Extend the Iowa biodiesel retailer credit, at 2 cents per gallon for blends of 2 percent biodiesel (B2) and 4.5 cents per gallon for 5 percent biodiesel (B5) in 2012, followed by 4.5 cents per gallon of B5 through 2017.
  • • Make it easier for petroleum marketers to achieve the credit.
  • • Add a biodiesel production incentive of 3 cents per gallon in 2012, 2.5 cents per gallon in 2013, and 2 cents per gallon in 2014 (for first 25 million gallons per producer).
  • • Provide $3 million a year to the Renewable Fuels Infrastructure Board.
  • • Give the Iowa Biodiesel Board a seat on the Renewable Fuels Infrastructure Board.

Randy Olson, Executive Director of the Iowa Biodiesel Board said of the biodiesel bill, “This is legislation that truly makes Iowa biodiesel competitive in the national marketplace, and I commend our legislators for empowering our state’s industry.”

He urged Governor to sign the bill and noted that as a result of the federal Renewable Fuels Standard (RFS2) the biodiesel industry is positioned to sell 800 million gallons of biodiesel throughout the country. Of this, Iowa has the ability to produce 300 million gallons on its own and many believe that the states with the strongest policies will secure the largest share of the market.

“Putting biodiesel producers back to work is good for the state’s economy, and also will help make Iowa the renewable energy capital of the world in the face of rising oil prices,” Olson concluded.

Biodiesel, biofuels, Legislation

Ethanol Report on Domestic Energy Bill

Cindy Zimmerman

Ethanol Report PodcastA bill was introduced today in the Senate that would modify the current ethanol blender’s tax credit set to expire at the end of this year.

Renewable Fuels Association president and CEO Bob Dinneen says the bipartisan Domestic Energy Promotion Act of 2011 introduced by Sen. Chuck Grassley (R-IA) already has a number of co-sponsors. “Senators Conrad, Johanns, Klobuchar, Franken, Tim Johnson, Senator Harkin and Ben Nelson of Nebraska, so it is a bipartisan bill,” said Dinneen.

The bill modifies the current Volumetric Ethanol Excise Tax Credit (VEETC) by tying the tax incentive to the price of oil. “This proposal would continue to provide a demand driver for ethanol when oil prices are low, while not requiring the taxpayer to subsidize gasoline marketers when the marketplace is already providing an incentive to blend,” Dinneen said.

The bill includes two other provisions that would help increase ethanol infrastructure and investment in next generation technology. “The reform of the existing tax incentive to be a variable incentive, infrastructure tax incentives that will encourage marketers to invest in blender pumps, and cellulosic tax incentives to allow the industry to continue to evolve sets up a policy that we think is fiscally responsible and makes great sense for this nation’s energy and economic future.”

Listen to or download an interview with Dinneen about the bill here: Ethanol Report on Domestic Energy Promotion Act

Audio, Cellulosic, Ethanol, Ethanol News, Ethanol Report, Government, RFA

Senate Bill Would Modify Ethanol Tax Credit

Cindy Zimmerman

U.S. Senator Chuck Grassley today introduced bi-partisan legislation to reform the current Volumetric Ethanol Excise Tax Credit (VEETC) while still supporting the domestic ethanol industry.

Introducing the bill, Grassley said the Domestic Energy Promotion Act of 2011 would reduce the VEETC for a two year period before transitioning to a tax credit that would adjust based on the price of oil. “When crude oil is more than $90 a barrel, there will be no blenders’ credit. When crude oil is $50 and below, the blenders’ credit will be 30 cents,” Grassley said. “When oil prices are high, a natural incentive should exist in the market to drive ethanol use.”

The bill would also improve upon current tax credits for the installation of blender pumps and ethanol fueling infrastructure as well as extend tax credits for small ethanol producers, advanced and cellulosic ethanol.

The American Coalition for Ethanol (ACE), Growth Energy, the National Corn Growers Association (NCGA), and the Renewable Fuels Association (RFA) issued a joint statement praising the legislation:

“This legislation rightfully recognizes budget constraints by reforming the ethanol tax credit and significantly reducing its cost. Additionally, this bill would improve current tax credits for the installation of blender pumps offering higher level ethanol blends and provide Americans more choice when they fill up. Critically, this legislation would also ensure progress made to commercialize advanced ethanol technologies utilizing new feedstocks such as grasses and municipal solid waste is accelerated. We thank these senators for their leadership in introducing this bill and look forward to working with them through the legislative process that ultimately ends with the President’s signature.”

The bill contrasts sharply with legislation introduced yesterday by Sens. Tom Coburn (R-OK) and Dianne Feinstein (D-CA) that would eliminate the U.S. tax credit for ethanol and the tariff on ethanol imports, a move that, based on a new report, the industry contends would result in significantly higher gasoline prices.

ACE, corn, Ethanol, Ethanol News, Growth Energy, NCGA, RFA

Iowa Legislature Passes Renewable Fuels Legislation

Cindy Zimmerman

The Iowa Legislature today approved comprehensive renewable fuels legislation intended to increase E15 sales and biodiesel production.

Iowa RFAIowa Renewable Fuels Association Executive Director Monte Shaw says the bill includes a new 3 cent per gallon retailer tax credit for E15 sales, allowing Iowa to lead the way in E15 public policy. “With final E15 approval expected from the EPA this summer, Iowa retailers will have an incentive to begin offering E15 on day one. E15 will be an option for Iowa motorists only if Iowa retailers choose to offer the higher blend. The E15 tax credit is an important tool for retailers looking to add lower cost E15 to their product mix.”

The bill also created a short-term production incentive for Iowa biodiesel producers. “The biodiesel industry is really going through a shaking out process right now,” added Shaw. “The states surrounding Iowa have taken aggressive steps to protect their biodiesel producers. This new production incentive will help Iowa biodiesel producers compete with neighboring states. Ramping up Iowa biodiesel production will create thousands of direct and indirect jobs.”

The bill contains a number of other provisions, including misfueling liability protection for retailers; an enhanced E85 retailer tax credit; an extension of the biodiesel retailer tax credit for blends of B5 and higher; $3 million in annual funding for Iowa’s Renewable Fuel Infrastructure Program; modifications to Iowa’s 25% Iowa renewable fuels standard and ethanol tax credit and codifying the ASTM fuel specification for biodiesel blends between 6 and 20 percent.

Biodiesel, Ethanol, Ethanol News

Ethanol Leader Challenges EIA Reporting

Cindy Zimmerman

The Energy Information Administration predicts only very modest production of cellulosic ethanol by the year 2022, but the industry is more optimistic.

rfa bob dinneenRenewable Fuels Association president Bob Dinneen challenged some of the reporting and assumptions the EIA made in the latest energy outlook, which administrator Richard Newell presented at the 4th International Biomass Conference in St. Louis this week. EIA is predicting that in 2022, cellulosic ethanol will contribute only 3.5 billion gallons to the nation’s liquid fuel supply. “We see far greater potential for cellulosic ethanol much sooner than does EIA,” Dinneen said during an industry roundtable when asked to comment on the agency’s forecast.

Dinneen also notes that the way EIA reports data marginalizes the important role that grain ethanol is already playing in the marketplace. “At the end of all the number crunching that EIA does, you’re left with a pretty pessimistic view of what grain ethanol can do for our nation’s fuel supply and energy security,” Dinneen said, pointing out that EIA reports ethanol as being just four percent of the U.S. fuel market, instead of being nearly ten percent of the gasoline market.

EIA predicts ethanol blending in gasoline will increase from 13.1 billion gallons in 2010 (about 9 percent of the gasoline pool) to 17.8 billion gallons in 2020 (about 12 percent of the gasoline pool).

Listen to an interview with Bob at the Biomass Conference here: Bob Dinneen Interview

Audio, biomass, Cellulosic, Ethanol, Ethanol News, RFA

Davis Off to a New Adventure

John Davis

My Dear Friends,

For the past four-and-a-half years, I’ve had the distinct pleasure of blogging about this nation’s and world’s efforts to wean itself from non-renewable energy. It’s been an absolutely fantastic experience, taking me down the blogging highway, sometimes from the comfort of my own living room chair. But, sadly, I will not be able to continue writing for this blog.

I have been offered a once-in-a-lifetime opportunity to go to Afghanistan to help the Afghans start a radio journalism/production program, so they can get good information to the people of that country and not just what some mullah wants to tell them. Don’t worry about my safety; I’ll be warm and safe and dry in the cozy confines of Kandahar Air Base, protected by the finest collection of fighting men and women the world has ever seen. I only hope that my efforts will make their jobs a little easier and help Afghanistan recover from decades of war and strife.

In the meantime, I hope to check in from time to time and give you a glimpse of our efforts there.

I can’t tell you how much I have appreciated Chuck’s and Cindy’s efforts and opportunities they have afforded me. They are true friends. I also feel confident that between them and their pool of talented, sophisticated freelance journalists, they’ll continue to spread the good news of renewable energy.

I thank you for reading my posts and providing comments. Even when (and probably especially when) we disagreed, I think it made for some great conversation … the real key to solving this nation’s energy issues. Keep reading Domestic Fuel, and keep putting in that great feedback!

Until we see each other again, take care!

John

Company Announcement, Miscellaneous

Improving Seed Traits

Chuck Zimmerman

Improving nitrogen/nutrient utilization (45%) was the top choice in answer to the ZimmPoll question, “What should the next seed traits focus on?” That was followed by drought tolerance at 23%, improve food/fiber profiles 14%, improve current traits 9% and other 9%. If you selected “other” what would you suggest? So there you go researchers. Let’s get with it and bring on some new traits!

Our next ZimmPoll is now live and asks the question, “Do you believe in man made climate change?” I was going to use the term global warming but now we have found out that cooling is going on too so the current buzz term on this is climate change. 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

Turning Plants Into Products

Joanna Schroeder

A new report from the Milken Institute, “Turning Plants Into Products: Delivering on the Potential of Industrial Biotechnology,” examines the challenges facing the industrial biotechnology sector and identifies market and policy based responses. In particular, the report found that biotech could play a significant role in the reduction of fossil fuel use, but struggles due to petroleum’s price advantage. The report is a accumulation of the Institute’s Financial Innovations Lab’s results derived from discussions with experts and stakeholders on how the US could facilitate a better flow of private capital into companies focused on the production of bio-based products.

“There is much appeal for policymakers to invest in expanding the biotech-derived chemical industry. In the long term, it has environmental advantages and offers an alternative to foreign oil,” said Joel Kurtzman, executive director of the Milken Institute Center for a Sustainable Energy Future. “In the short term, it offers the immediate benefit of rural employment opportunity.”

Industrial biotechnology uses living materials such as plants, algae, marine life, fungi and micro-organisms and biosolids to produce a wide range of products from chemicals to plastics to cosmetics. But unlike the petrochemicals industry, the industrial biotech industry is not well established and doesn’t have the advantages of economies of scale and established operating efficiencies. So to encourage further development the industry will need an organized cooperation of local, state and federal governments along with support from the investment community, trade organizations and academia.

Turning Plants in Products suggests several courses of action to mitigate current challenges and increase the chances of success: establish concrete, long-term government policies; create prize forums; utilize established resources; and create innovative securitization.

Kurtzman added, “The industry needs to find the momentum to get companies past the funding gaps and on to commercial-scale production. This will require continued investment in R&D, supported by the government and public-private partnerships, to make the investment less risky and to increase the efficacy of the technology. We believe the results will be greatly worth the effort.”

The Financial Innovations Lab that led to the development of the Institute report was funded in part by the Office of Energy Policy and New Uses at the U.S. Department of Agriculture.

biochemicals, biofuels, biomaterials, bioplastics, Research

Off Shore Wind Park in Germany Powers Up

Joanna Schroeder

Germany has inaugurated its first offshore wind farm located in the Baltic Sea. Now that the project is operational, it is the country’s second offshore wind farm to go online. To commemorate the achievement, German Chancellor Angela Merkel was onsite to mark the occasion. The 50 megawatt (MW) wind part is expected to generate up to 185 gigawatts hours of electricity each year, enough to power about 50,000 average sized German homes. This wind farm project is part of the country’s offshore wind “gold rush” in the North Sea and Baltic Sea and marks another project that will get Germany closer to its renewable energy goals.

“Germany’s offshore wind industry is taking off. Two parks off two very different coasts have been completed and others are in development. A pipeline is already in place to serve Europe’s largest market and political backing for wind energy is strong. This recipe has led to manufacturers, suppliers and researchers lining up along the country’s coastlines,” said Anne Brautigam, wind energy expert at Germany Trade & Invest in Berlin.

The EnBW Baltic 1 wind farm is comprised of 21 turbines, at a water depth of 50-60 feet, located 10 miles from Germany’s Baltic Coast. The power generated by the wind turbines are connected to the grid via several 410 feet tall transmission lines and the German grid operators covered a large share of the wind farm costs.

Germany generates 17 percent of its electricity needs via renewable energy with a majority coming from wind. Offshore park alpha ventus (60 MW) in the North Sea began operating last year and served as a cooperative test project for utilities, installers and manufacturers. In development is the BARD Offshore 1 (400 MW) project in the North Sea as well as several other projects including Baltic 2, Dan Tysk, (each 288 MW) Nordsee Ost (295 MW), and Amrumbank West (300 MW).

Electricity, Energy, Wind

Biofuels Center of North Carolina Awards $1.6M in Grants

Joanna Schroeder

In an effort to accelerate the commercialization of renewable fuels, the Biofuels Center of North Carolina has awarded $1.6 million to 15 different projects located within the state. The monies for the awards came from the 2011 Statewide Biofuels Development Grants Program. The center received 58 pre-proposals from 23 organizations with funding requests totaling more than $5.2 million.

“The juncture of new energy and new agriculture requires smart ideas and practical commercial outcomes,” said Steven Burke, CEO of the Biofuels Center. “The 15 awarded projects-encompassing rural communities and woody biomass, technology and municipal solid waste-verify the competence, scope, and remarkably rapid development of this new sector statewide.”

Within the Center’s legislative and policy mandate is the need to strengthen and fund projects leading to biofuels commercialization. These objectives also help the state meet its renewable energy goal of having 10 percent of its liquid transportation fuels by 2017 produced from locally grown biofuels feedstocks and produced in the state.

The program sought projects targeting three areas: county or regional analyses of assets available for site location of biofuels companies; needs analyses and plans for the conversion of municipal waste into biofuels; and the growing of energy grasses in the North Carolina Piedmont region. The awarded projects will impact 60 counties and will in various ways address biofuels ranging in variety from biogasoline and bioethanol to FT diesel, and biomass-derived jet fuel.

Click here for a full list of award recipients.

biofuels, feedstocks, Waste-to-Energy