DF Cast: OriginOil to Prove Algae-to-Fuel Process

John Davis

The developer of technology that turns algae in to renewable fuel is going down under to do some long-term testing of its process.

OriginOil recently announced the successful completion of the first phase of its commercial pilot program with Australian company, MBD Energy, OriginOil’s first customer and pilot partner. In this edition of the Domestic Fuel Cast, we talk to OriginOil’s CEO, Riggs Eckelberry, about his company’s testing of its algae-to-renewable-fuel technology in an in-the-field, real-world situation.

“We were looking for one of our pilot customers that would enable us to scale up our technology in real conditions.”

Eckelberry says his company’s bread and butter is focusing on extracting all that water from the algae and then extracting the oil by a process that he describes as “shocking” the algae. This testing should take several years with Eckelberry hoping at the end of the day, his technology will prove successful.

This announcement comes on the heels of the news that OriginOil has another project in the works, this time a little closer to home. The company will help build a new Advanced Algae Center with Sustainable Resources, Incorporated on the site of the original Aquatic Species Program in Roswell, New Mexico, scheduled to start sometime next year. Eckelberry jokes that they’ll even hold a job fair for any little green men who might be visiting Roswell to work at the facility.

Hear more from Eckelberry on both these projects in the Domestic Fuel Cast here. Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.

algae, Audio, biofuels, Domestic Fuel Cast

2011 Ethanol Symposium Kicks off New Year

Joanna Schroeder

Although January is just around the corner, it’s not too late to add an event to your calendar.

The 2011 Ethanol Symposium: An Examination of Demand vs. Availability is scheduled for January 14 at Rio Hondo College in Whittier, CA. This free event is part of the Clean Transportation Education Project, a collaboration of the Clean Cities Coalition and the N.C. Solar Center at North Carolina State University and Wake Technical Community College. It is funded through the U.S. DOE. The symposium begins at 8:00 a.m. PST and ends at 4:00 p.m.

Confirmed speakers include: Judy Chu, California Congresswoman 32nd District;  Rich Cregar, Wake Tech College; Peter Ward, California Energy Commission; Joe Irvin, California Ethanol Vehicle Coalition; Paul Wikoff, Policy Advisor for CEVC; Warren Turner, V.P., Sweet Sorghum Ethanol Association; Lunch Keynote Speaker A.G. Kawamura, Secretary of CDFA; and more.

The Clean Transportation Education Project is holding a total of 36 workshops over two years covering ethanol, biodiesel, natural gas as a transportation fuel and fuel efficiency topics.

For more information contact Jennifer at Purpose Focused.

Biodiesel, biofuels, Education, Ethanol

$5 Gas Prices On the Horizon

Joanna Schroeder

According to former president of Shell Oil, John Hofmeister, Americans will be paying $5 per gallon for gas by 2012 due to growing demand for oil, tighter supplies and inadequate responses by the U.S. government. His remarks were made during his appearance on Platts Energy Week television.

Not necessarily news Americans want to hear as gas prices have been on the rise for the past few weeks and the worst recession in decades holds on as the country makes preparations for the new year.

Hofmeister also predicted that little or no new drilling would take place in the deep waters of the Gulf of Mexico for the next two years as Washington still tries to find the adequate response to the BP oil spill. However, drilling new wells would not bring about an immediate relief to high gas prices as it takes years to bring new wells into production.

“If we stay on our current course, within a decade we’re into energy shortages in this country big time,” said Hofmeister, who retired from Shell in 2008 and now heads a grass-roots group called Citizens for Affordable Energy.

“Blackouts, brownouts, gas lines, rationing–that’s my projection based upon the current inability to make to make decisions,” Hofmeister said during the program. “The politically driven choices that are being made, which are non-choices, essentially frittering at the edges of renewable energy, stifling production in hydrocarbon energy–that’s a sure path for not enough energy for American consumers. When American consumers are short or prices are so high–$5 a gallon for gasoline, for example, by 2012–that’s going to set a new tone. It’s going to be panic time for politicians. They’re suddenly going to get the sense that we better do something.”Read More

biofuels, Oil, Opinion

Research to Study Impact of Ethanol on Older Vehicles

Cindy Zimmerman

Kettering University in Flint, Michigan is one of several that have been tapped by the Department of Energy (DOE) to study the impact of higher ethanol blends on older vehicles.

The use of up to 15 percent ethanol in gasoline for 2007 model year vehicles or newer has been approved by the federal government, while the use of E15 in model year 2001-2006 vehicles is still being evaluated. The research at Kettering will look at vehicles older than 2000 model year, for which the use of higher ethanol blends has been denied by the EPA.

The $125,000 grant marks the second time Kettering mechanical engineering professors have studied the impact of ethanol on older vehicle engines. Kettering professors Craig Hoff andGregory Davis did a study last year that looked at how ten percent ethanol blends may impact classic cars from as far back as the 1940s. In that study, which included 1,500 hours of testing, the researchers concluded that “it’s safe to assume that you can continue to drive your collector vehicle using E10; it may just cost you more in the long run” because of additional costs associated with sealing fuel tanks and cleaning and rebuilding fuel systems more frequently.

blends, Ethanol, Ethanol News, Research, University

Restarting Idled Biodiesel Plants Could Pose Problems

John Davis

The renewal of the federal $1-a-gallon biodiesel tax incentive is giving some idled biodiesel plants new life, but a biodiesel consultant is warning that there are some risks to consider.

Wayne Lee, principal owner of Lee Enterprises biodiesel consulting group in Little Rock, Arkansas, says one area producers need to consider is Renewable Identification Numbers (RINS):

“While the EPA allows a biodiesel producer to detach and trade RINS,” says Lee, “this can only be done in two very specific ways.” He notes that if compliance is not followed “to the letter” plants will subject themselves and their RINS customer to rejected trades. “I think some producers are operating under the assumption that they can simply detach the RINS from B99 at will,” says Lee. “Without the proper paperwork, those people are likely to be very unpleasantly surprised.”

Another issue is safety … in the process and training sides … according to Lee’s in-house legal counsel John Hardy:

“OSHA has some pretty strict guidelines with respect to its [Process Safety Management] standards, and some very large fines for non-compliance,” says Hardy. “I think many biodiesel plants may be operating under the assumption that they are not covered by OSHA’s process safety management standards. Hardy notes that most commercial biodiesel plants are probably covered by PSM standards, and need to make sure they are compliant. He also notes that safety training is an ongoing process, not a one-time event, and that all plants should address PSM and safety training upon startup, and at least yearly thereafter. “With the magnitude of potential fines, one problem could literally devastate a non-compliant plant,” says Hardy.

Finally, Lee advises that producers make sure their re-start quality level of biodiesel is up to standards.

Biodiesel

Offshore Wind Could Boost Ontario’s Economy

Joanna Schroeder

In a new study released by The Conference Board of Canada and financed by the wind company Vestas Offshore, the development of offshore wind farms could boost Ontario’s economy by $4.8 billion to $5.5 billion a year between 2013-2026. During the same time frame, development could lead to a total of $10 billion in capital investment and operations spending and support around 4,000 jobs during the construction phase.

“Employment and Economic Impacts of Ontario’s Future Offshore Wind Power Industry,” was based on the economics if seven new offshore wind energy projects were developed totaling 2,000 megawatts (MW) by 2026. The Conference Board felt that this number was “conservative compared with market potential.” While there are no offshore wind farms currently operational in North America, there are two in development near Kingston, Ontario.

“An offshore wind industry in Ontario – one that develops enough projects to be sustainable in the longer term – would create both short-term construction employment and permanent green jobs in the operations phase,” said Len Coad, Director, Environment, Energy and Technology Policy, The Conference Board of Canada. “Should development progress as anticipated, it is likely that new industries will develop in the province to service the needs of the growing sector.”

According to IESO, there is 2,600 MW of wind energy capacity expected to be online in Ontario by the end of 2011 with the number growing significantly over the next five years. The organization said that wind energy is well positioned for growth with the implementation of the Green Energy and Green Economy Act of 2009 as well as the Ontario Power Authority’s Feed-in-Tarriff (FIT) program that promotes renewable energy.

Energy, International, Research, Wind

Oil Independence Act Introduced

Joanna Schroeder

Earlier this week, Rep. Jay Inslee (D-Wash.) introduced H.R. 6554, “Domestic Fuel for Enhancing National Security Act of 2010.” Now, he has introduced “Oil Independence for a Stronger America Act of 2010” along with Mike Castle (R-Del.). This proposed legislation would create or extend a diverse array of federal programs necessary to help advanced biofuel producers secure financing for construction of first-of-a-kind projects.

Rep. Inslee stated, “This legislation creates a path forward to achieve energy independence and invigorate American industries. The legislation will help redirect the billions that we send overseas to pay for our addiction to foreign oil and instead invest those dollars into homegrown biofuels and America’s transportation sector.”

Brent Erickson, executive vice president of the Biotechnology Industry Organization’s (BIO) Industrial & Environmental Section, stated, “The United States needs to produce large volumes of advanced biofuels to reduce reliance on foreign oil, enhance both our energy and national security, and jump start economic growth. More than 65 planned and operating projects in 30 states are looking to build an advanced biofuels and biobased products industry. But, even with the rapid pace of technology development and the demonstrated commitment of Congress and the Obama administration, federal policies to date have fallen short in helping the industry to secure needed capital investment in biorefineries and infrastructure.”

Erickson stressed that federal policies can provide potential investors the type of certainty they need to make a long-term investments in new cellulosic and algae-based advanced biofuel facilities and asked for the enactment of an investment tax credit similar to those given to other nascent industries.

BIO, biofuels, Government

Biodiesel, Ethanol Contribute to Gasoline Demand Drop

John Davis

A new report from the U.S. Department of Energy says that gasoline demand will drop in this country by another 20 percent by the year 2030.

And this article from the Examiner.com says part of that drop is due to alternative-fueled vehicles, including those running on biodiesel and ethanol:

“A combination of demographic change and policy change means the heady days of gasoline growing in the U.S. are over,” said David Vergin, chairman of IHS Cambridge Energy Research Associates, winner of the Pulitzer Prize for his history of the oil industry. Exxon-Mobil’s CEO Rex W. Tillerson acknowledged that U.S. gasoline demand peaked in 2006, anticipating future declines. While the country’s “Great Recession” and high gas prices have kept Americans off the roads, more fuel efficiency and alternative-fuel vehicles promise to keep demand down. Current and past administrations continue to press for alternatives to fossil fuels.

Now, while the article’s author makes a good point about the alternatives helping bring down overall gasoline demand, I think he makes some wrong assumptions that ethanol hurts the environment, especially the water supply. He does make some good points that more alternatives in public transportation, such as natural gas buses, electric subways and light-rail, will contribute greatly to the overall drop in petroleum-based gasoline demand.

Biodiesel, Ethanol, Ethanol News, News

New Patent to Add Value to Canola-Biodiesel By-Product

John Davis

A new patent could end up being a big boost to the canola-based biodiesel industry.

Biodiesel Magazine reports that Clean Power Concepts Inc. of Regina, Saskatchewan has picked up an exclusive patent that will allow it to extract protein from lipid sources from biodiesel production plants:

Originally developed as a result of scientific research conducted by the Canadian Department of Fisheries and Oceans, CPC President and CEO Michael Shenher said the patented technology is ideal for extracting proteins from canola meal where it then can be converted into livestock, chicken and fish feed products and sold into those respective markets. Deploying the newly-acquired patent technology, according to Shenher, would be ideal for financially distressed biodiesel manufacturing refiners or existing producers running on a reduced capacity basis seeking additional revenue streams.

“We believe that this is going to be able to change the economics of biodiesel production because it’s going to significantly supplement the revenue from the canola crush operations,” Shenher said. “There’s a lot of interest right now in value-added agriculture and aquaculture feed products.”

The company plans to put the process in place at its own 5 million-gallon-a-year biodiesel plant in Regina and hopes to license the technology to other biodiesel producers.

Biodiesel