The Hail Storm Against the Tax Package Intensifies

Joanna Schroeder

While many in the domestic U.S. energy industry were giving sighs of relief yesterday after the Senate passed the one-year extension of the tax package, others were not so calm. Two organizations in particular that are not happy with the renewal of the biofuel portion of the tax package were the Brazilian Sugarcane Industry Association (UNICA) and Friends of the Earth. On Monday, in Angry Sparks Turning to Flames Over Ethanol Tax Package, I wrote about how UNICA was asking for Brazil to initiate dispute settlement proceedings at the World Trade Organization if the Volumetric Ethanol Excise Tax Credit (VEETC) and the tariff were passed. They both were.

UNICA President Marcos Jank reiterated yesterday, “Despite calls from across the country – including nearly 100 newspaper editorials, over 80,000 letters from clean energy advocates, and opposition from a bipartisan group of Senators and one of the broadest coalitions imaginable – the U.S. Senate voted today to extend the subsidies and trade protection for U.S. ethanol producers for one more year.

He continued, “While we were disappointed with today’s outcome, and the expected rubber stamp by the U.S. House of Representatives, we know that the days of ethanol subsidies and trade protection are near the end, either because they will expire at the end of 2011 or as a result of litigation at the World Trade Organization (WTO).”

Friends of the Earth (FOE)  is also floored that the Senate could so blindly pass the $860 billion tax package. They are an environmental organization that has been vocal against corn-based ethanol in the U.S. and all biofuel development global. In a statement released yesterday, Ben Schreiber, FOE’s climate and energy tax analyst said, “Friends of the Earth is deeply dismayed that the Senate followed President Obama down the path of capitulation to bad economic and environmental policies.

He continued, “The Senate bill has been larded up with tax cuts to support dirty and dangerous energy sources, including petroleum, coke, natural gas and corn ethanol. The worst examples of environmentally destructive handouts are a forty-five cents per gallon tax credit to corn ethanol via the Volumetric Ethanol Excise Tax Credit (VEETC) and a fifty cents per gallon tax credit for the production of liquid coal.”

“Speaker Pelosi and members of the House must prevent unfair and irresponsible giveaways to the wealthiest Americans and corporations from moving forward. Otherwise, this Congress will leave behind a legacy of wasteful spending that could inhibit our government’s ability to function in the public interest,” concluded Schreiber who in this statement did not offer up what ‘fair and responsible’ giveaways or spending might be.

Unfortunately, this debate is far from over. The extension is one-year only and all renewable energy industries will be back in Washington for the 112th Congress beginning talks on what, if any, energy incentives will look like in 2012 and beyond.

biofuels, Ethanol, Solar, UNICA, Wind

USDA Joins FlexFuel Vehicle Awareness Effort

The Clean Fuels Foundation announced today that they are working with the U.S. Department of Agriculture (USDA) to expand public awareness on fueling options available to owners of flexible fuel vehicles (FFVs).

The FFV awareness effort is targeting several areas across the country to increase the use of ethanol blends in FlexFuel vehicles. “Breaking through the blend wall begins with the 8 million FlexFuel vehicles on the road today, and reaching these drivers to make sure they know they can use ethanol blends up to 85%,” said Agriculture Under Secretary for Rural Development Dallas Tonsager. Tonsager also noted FFVs of any age can use E15 or any other gasoline ethanol blend up to E85 and can take advantage of favorable market pricing on these blends when offered.

The US Environmental Protection Agency is also supporting the effort, and EPA spokesman Paul Argyropolous said, “More frequent use of higher blends of ethanol in FlexFuel vehicles is one avenue that can further support meeting the volume requirements of the renewable fuel standard, which in turn results in additional greenhouse gas reductions. When fully implemented, the program will reduce GHG emissions equivalent to taking 27 million cars off the road. This awareness effort is another avenue which federal and private interests can work together to attain these goals.”

Organizers of the awareness effort say they will be focusing on several different areas that already have FlexFuel pumps as well as areas with a high concentration of FlexFuel vehicles. Ohio, Florida, Georgia, Texas, Kansas, Nebraska, and the Washington, D.C. areas will be among the states targeted in the initial phase of the campaign. Stakeholder meetings have been held in Ohio and Nebraska in recent weeks with several more scheduled in the coming months.

According to Douglas A. Durante, Director of the Clean Fuels Foundation, a little effort goes a long way in terms of consumer education. “We have found when consumers realize their vehicles have this capability and we inform them where they can get the fuel, ethanol sales increase dramatically.”

E85, Ethanol, Ethanol News, Flex Fuel Vehicles, Government, News

Solar Industry Celebrates Passage of Tax Package

Joanna Schroeder

“With bipartisan leadership from Senators Cantwell, Feinstein, Ensign and LeMieux, the Senate made clear today that it is serious about protecting American jobs,” said Rhone Resch, the President and CEO of the Solar Energy Industries Association (SEIA) yesterday after the Senate voted to pass the one-year extension of various tax incentives that fall under the Department of Treasury Section 1603 program.

Resch continued, “Since its passage, the 1603 program has successfully created jobs and opportunity in all 50 states for construction workers, electricians, plumbers, and contractors that have struggled during this difficult economic climate. An extension will help the solar industry remain one of the fastest growing industries in America and create thousands of new careers. With passage now complete in the Senate, it is critical that the House moves swiftly to pass this bill and send to the President for his signature. Tens of thousands of jobs depend on it.”

The program that was extended for one year was created as part of the American Recovery and Reinvestment Act (Section 1603) to help drive economic growth through the growth of “green jobs.” More specifically, 1603 gave commercial solar installations a cash grant in lieu of the 30 percent solar investment tax credit (ITC) that President Bush signed into law in 2008. The tax credit was difficult for most to take advantage of during the global recession, that still remains as 2010 comes to an end.

The program refined in Section 1603 appears to be working. According to SEIA, the TGP has helped move forward more than 1,100 solar projects in 42 states and supported $18 billion in investment. The program has been critical in allowing the solar industry to grow by over 100 percent in 2010, create enough new solar capacity to power 200,000 homes and provide work to more than 93,000 Americans.

Electricity, Solar

Company Proposes to Build Toronto Biodiesel Plant

John Davis

A Canadian company wants to turn an 8,600 square-foot building in Toronto into a biodiesel plant.

Biodiesel Magazine reports that Energy Innovation Corp., with some help from Invest Toronto, will build the 1.3 million gallon-a-year plant in the downtown part of the city’s port lands area, near existing ship, truck and rail transportation infrastructure:

According to Patrick Dwyer, EIC vice president of communications, the company is shooting for full operation by spring 2011. Locally grown flax seed initially would be the feedstock of choice for the planned facility. Utilizing a hybrid continuous flow/batch system, the company plans to extrude the flax seed into oil for biodiesel production and take the remaining meal for use as animal feed, or have it further milled into flour to be sold in the Ontario food market, according to Dwyer.

“Everyone said you can’t grow flax in Ontario,” Dwyer said, adding that, through a partnership already established with an area farmer, EIC would have access to about 1,200 acres of flax. “We said we don’t think that’s true. Areas not too far from us used to be known as the flax capital of Canada 100 years ago before people started moving out to the prairies and different crops started to replace flax. We’re looking to bring flax back and grow it ourselves or through partnerships.”

EIC will also use local coffee grounds as a feedstock.

Biodiesel

New Pickens Plan Leaves Out Wind

John Davis

A couple of years ago, T. Boone Pickens unveiled a plan that would use wind energy and natural gas to help America kick its foreign petroleum habit.

But after a couple of setbacks trying to start a mega wind farm in Texas (and now possibly in Canada), the billionaire oilman is changing gears, and Mother Nature Network reports he is leaving wind out of the mix:

The new Pickens Plan calls for Congress to pass legislation that will incentivize the conversion of 18-wheel trucks to compressed natural gas (CNG). This conversion, according to a report on msnbc.com, would “cut in half the amount of oil imported to United States,” if just eight million of the tractor-trailers in the United States switched to CNG.

So what’s the issue? Well, some are saying Pickens’ 45% ownership in a company called Clean Energy Fuels is his sole motivation. Clean Energy Fuels makes natural gas filling equipment for buses and other large vehicles.

The story goes on to point out that Pickens aims to make hundreds of millions of dollars from his natural gas portion.

Natural Gas, Wind

Air Force Aims High on Alternative Fuels

John Davis

The men and women who wear U.S. Air Force blue are looking to help preserve your freedoms, while gaining their own freedom from non-renewable petroleum.

This article from National Defense Magazine says the service wants the biofuels industry to step up its game to provide the millions of gallons the Air Force will need when it converts to 50-50 blends of jet and synthetic fuels in 2016:

“I’m throwing the gauntlet down to industry,” said Timothy Bridges, deputy assistant secretary of the Air Force for energy, environment, safety and occupational health. “We’re doing our part. We’re asking them to do theirs and support the country as we move toward alternative energies,” he told National Defense in an interview at the Pentagon.

The Air Force is working to wean itself off foreign oil. It consumes some 2.5 billion gallons of jet fuel annually. By 2030, its intention is to fly on domestically produced alternative fuels concocted from renewable sources including biomass, which encompasses everything from wood chips and plant oils to animal fats and agricultural waste. Those fuels must be cost competitive with petroleum and have greenhouse gas emissions equal to or less than that of oil, officials said.

“It has to be a business consideration because we want competitively priced fuels for it to make sense to do it,” said Bridges. “Yes, we can get the quantities that we need for the testing, but when it comes to our requirement to actually fly the fleet, that’s a larger challenge. We’re setting the expectations. We want it to be there when we’re ready,” added Bridges, who until recently oversaw energy as part of his responsibilities. A new office dedicated solely to energy was established by the service in November. It is being led by Kevin Geiss, deputy assistant secretary for energy.

If it meets its 50 percent goal of alternative fuels from locally sourced feedstocks in five years, that would add up to 400 million gallons. The Air Force’s point is the infrastructure needs to be up-to-date to handle that demand.

“We want to say, ‘Look guys, we’re going to be ready. Will you be ready?’” said Bridges.

biofuels, Government

New Mexico to Get Plethora of Solar

Joanna Schroeder

A five-solar site project broke ground today in New Mexico, when completed will provide residents of Lea and Eddy counties more than 112 million kilowatts hours of solar energy per year. The 54 MW photovoltaic solar project will be spread out over five separate sites and will help utility provider Xcel Energy meet the state’s renewable portfolio standard that requires 15 percent of all electricity must be from renewable sources by 2020. The full project is expected to be completed by the end of 2011 and is being designed by SunEdison, a subsidiary of MEMC Electronic Materials.

“Xcel Energy has built its reputation on responsible stewardship of our environment while meeting customer expectations for innovation, reliability and competitively priced energy,” said Riley Hill, president and CEO of Southwestern Public Service Company, an Xcel Energy company. “The SunEdison project positions us as a leading provider of solar power and a reliable partner in the development of a renewable energy economy in New Mexico.”

The five installations will be built, financed and maintained by SunEdison, under a 20-year solar power services agreement with Xcel Energy, which will buy the solar energy generated by the solar power plants. Once constructed, the 54MW deployment will be the largest in New Mexico. It is expected that the project will generate more than 2 million megawatt hours of solar energy over twenty years—enough energy to power more than 192,000 average U.S. homes for one year, according to a company press release.

“I commend SunEdison and Xcel Energy for locating this sustainable energy project in southeast New Mexico,” said State Senator Caroll Leavell who attended the ground breading ceremony. “Lea and Eddy counties embrace oil, gas and nuclear and this will further diversify our local economy as well as the energy security of the nation. It is special that one of the five units will be located on Woolworth Trust property. This private trust funds the Jal Senior Citizen’s Center and Woolworth Library. This project will benefit our citizens for years into the future.”

Carlos Domenech, President of SunEdison concluded, “SunEdison is proud of our continued relationship with Xcel Energy. Having recently activated a 70MW deployment in Italy, SunEdison has proven our ability to construct and finance large utility-scale solar deployments. We look forward to working with Xcel Energy in helping them reach their renewable energy goals.”

Electricity, Solar

Canada’s RFS Officially In Effect

Joanna Schroeder

Today marks a big day for supporters of renewable fuel in Canada. The country’s Renewable Fuels Standard has officially gone into effect. This adds nearly two billion litres of renewable fuels including ethanol and biodiesel, into the country’s gasoline pool each year and according to the Canadian Renewable Fuels Association (CRFA) will “change the way Canadians drive going forward.” In addition, a second Renewable Fuels Standard specifically for biodiesel is expected to be enacted in the new year.

“Starting on December 15th, Canadians will be fueling change every time they drive. Five per cent of the gasoline that Canadians pump into their vehicles will come from renewable green sources harvested and produced across Canada,” said Gordon Quaiattini, president of CRFA. “Ethanol and biodiesel help diversify our fuel supply, add new income for farmers, and reduce harmful greenhouse gases.”

In a CRFA press release, they cited a third party Canadian study that showed ethanol reduced GHGs by 62 percent when compared to conventional gasoline and biodiesel shows a 99 percent reduction. When using the above calculations, the new RFS will eliminate 4.2 megatonnes of emissions each year or the equivalent of removing 1 million cars from Canada’s highways.

CRFA also cites the economic benefits of renewable fuels – construction of plants has generated nearly $3 billion in economic activity and ongoing activities represent a $2 billion annually. Farmers also receive higher incomes without the need for government programs and the country’s forestry sector is also seeing economic gains.

“With the renewable fuel standard coming into effect Canada is now positioned to become a world leader in advanced biofuels,” added Quaiattini. “The production and the commercialization of next generation advanced biofuels using state-of-the-art technologies and a wide variety of feedstocks is underway.”

Biodiesel, Ethanol, International

TVA Adds More Wind to Portfolio

Joanna Schroeder

The Tennessee Valley Authority (TVA) is adding more wind energy to its growing renewable energy portfolio. It has contracted with Horizon Wind Energy LLC in Iowa to supply 44 megawatts of wind energy per year by 2012. Horizon will supply TVA with electricity generated by 50 Vestas 1.65-megawatt turbines at Horizon’s Pioneer Prairie wind farm in Howard and Mitchell counties. The project is still subject to applicable environmental requirements and securing firm transmission arrangements.

“We’ve seen remarkable growth this year in our wind power resources for the future,” TVA Senior Vice President John Trawick said. “This continued expansion is the result of TVA’s renewed vision to be among the nation’s leading providers of clean, reliable, low-cost power.”

This is the second TVA-Horizon wind purchase agreement this year. This past February, TVA signed a purchase agreement for up to 115 megawatts of wind power from Horizon. This latest agreement marks approximately 1,600 megawatts of renewable wind power contracted for TVA’s generating system.

TVA’s current renewable energy portfolio includes more than 4,300 megawatts from hydro, wind, solar and methane sources. In addition, TVA’s generates 6,900 megawatts of power from its nuclear power plants.

Electricity, Wind

NEC Registration At Feverish Pace

Joanna Schroeder

Registration for the 16th Annual National Ethanol Conference on February 20-22, 2011 is filling up fast. So fast in fact that there is concern that the hotel rooms at the JW Marriott Desert Ridge Resort & Spa in Phoenix, Arizona are going to be gone right along with 2010. The focus for this year’s conference is Building Bridges to a Sustainable Energy Future and this premier industry event will focus on vital marketing and policy issues.

“This is a conference you have to attend. All the other major players in your industry will be there, which puts you at a disadvantage if you sit this one out,” says John Litterio, Director, CHS Renewable Fuels Marketing.

Conference session highlights include:

  • • Future of Biofuels Tax Policy
  • • Where Are We on the Road to Next Generation Biofuels Commercialization?
  • • Behind the Scenes Look at Impact of 2010 Elections on Congress and Presidential Politics, featuring Mary Matalin and James Carville
  • • Moving Beyond E10
  • • How Will EPA’s GHG Tailoring Rule Impact Your Business?
  • • Global Ethanol Outlook
  • • Oil Products and Feedstock Forecasts

This is one time that it doesn’t pay to procrastinate. You can learn more about the NEC conference and register online for both the conference and your hotel here.

Ethanol, Ethanol News, National Ethanol Conference, RFA