Protec Fuel Opens First E85 Station with Imaging

Protec Fuel announces the opening of an E85 pump at 5264 New Jesup Highway in Brunswick, Georgia. Offering the clean burning, alternative fuel, Mr. Pete’s is the first station to have Protec Fuel’s imaging on their dispenser.

E85 is a blend of 85 percent ethanol and 15 percent petroleum and can be used in over 8,000 FFVs across the area. The alternative fuel has been proven to reduce greenhouse gas emissions and reduce the nation’s dependency on foreign petroleum.

Mr. Pete’s used Protec Fuel’s turnkey program which included designing and managing the equipment conversion and fuel supply. “We are pleased to be assisting this station with their E85 infrastructure and supply of fuel,” said CEO of Protec Fuel, Todd Garner. “Mr. Pete’s is a prime location for Protec’s roll-out of new E85 dispenser imaging and we look forward to seeing additional sites with our specialized branding.”

The E85 site is also the first of its kind in the area. Located just north of Jacksonville and south of Savannah, the owner is excited to begin selling the product. “I’m looking forward to see how many green vehicles will use our new fuel,” noted owner of Mr. Pete’s, Al Coty. “I’m proud to carry the fuel – it’s keeping the money in this country and helping our economy.”

Mr. Pete’s and Protec Fuel have teamed up with the Clean Fuels Foundation through their National Flex Fuel Vehicle (FFV) Awareness Campaign to help market the station and gain additional exposure. “Support from the state government, a strong Clean Cities program, in-state 1st and 2nd generation ethanol production, and a strong existing refueling infrastructure placed Georgia on our key market list in this partnership,” said Burl Haigwood, Clean Fuels Foundation and Project Manager for the National FFV Awareness Campaign.

Mr. Pete’s is open seven days a week. The site offers a convenience store and pay at the pump option.

E85, Ethanol, Ethanol News, Facilities, Flex Fuel Vehicles, Miscellaneous, News

Industry Welcomes Back Fed Biodiesel Tax Incentive

John Davis

Passage of the federal tax bill and sending it to President Obama for his signature is being welcomed by many in the renewable energy field, especially the biodiesel industry.

The nation’s largest biodiesel producer, Iowa-based Renewable Energy Group, had quick praise for the approval, which retroactively renews the year-long expired $1-a-gallon federal biodiesel tax incentive:

“The reinstatement and retroactivity of the biodiesel blenders’ tax credit provides a more predictable and stable market for our company and our customers,” said Daniel J. Oh, President and Chief Operating Officer of Renewable Energy Group® (REG®), the nation’s largest biodiesel producer and marketer.

“With President Obama’s signature as the final step for this bill, the biodiesel blenders’ tax program restores competitive pricing for biodiesel in the distillate marketplace, puts green collar workers back to work and supports the future of this advanced biofuel industry in the coming months.”

Reinstatement and retroactivity means greater market certainty for REG’s customers, the petroleum industry and RFS2 obligated parties.

“We believe reinstatement for 2011 will allow petroleum distributors and obligated parties to make biodiesel purchasing decisions which will increase demand for REG-9000TM biodiesel, “ said Oh. “With the combination of blending requirements under RFS2 and the competitive pricing model offered by the tax credit, REG expects a significant increase in biodiesel demand for our five facilities in Iowa, Illinois and Texas.”

REG officials expect to double biodiesel sales in 2011 to meet the 800 million gallon biodiesel market that has been created under the new Renewable Fuels Standard (RFS2). And that could mean the company could increase its number of workers by 30 percent in the coming year.

National Biodiesel Board officials also praised the passage, reminding folks that this is truly an economic stimulus package for the biodiesel industry:

“Reinstatement of the biodiesel tax credit is welcome news for the U.S. biodiesel industry and good news for the nation as a whole,” said Manning Feraci, NBB Vice President of Federal Affairs. “This will undoubtedly help kick-start the domestic biodiesel industry, lessen our dependence on foreign oil, and create thousands of new jobs across the country.”

Biodiesel, Government, Legislation

Ethanol Industry Recieves Incentives for the Holidays

Joanna Schroeder

The only action remaining before the ethanol industry has the best holiday present of the season is President Obama’s signature. In what could literally be defined as the 25th hour, Congress passed the tax bill on Thursday that included a one-year tax extension for several key ethanol tax incentives. In the most heated subsidy debate in history, ethanol was the victor on the hill.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen said of the victory, “House members have struck a blow to the oil status quo and extended important tax policies that will allow America’s ethanol industry to grow and evolve. Domestic ethanol production helps create jobs and economic opportunity in often overlooked rural communities. Domestic ethanol production reduces America’s tab to petro-dictators across the globe. There is no alternative to gasoline available today that can match ethanol’s energy security and economic benefits.”

The American Coalition for Ethanol (ACE) was one of several organizations that worked to ensure that the ethanol incentives remained in place. ACE’s Executive Vice President, Brian Jennings, said of the tax bill, “When it became apparent a long-term extension of VEETC was unlikely in Congress, ACE began actively working with the White House, Congress, and other groups to unite behind a plan to reform the ethanol tax incentives. This one-year extension will provide the ethanol industry the opportunity we asked for to continue identifying the best long-term roadmap for the tax credit and overall ethanol policy reforms.”

Growth Energy CEO Tom Buis added, “This vote today will provide certainty in the market and give us a chance to work with Congress and the Administration to enact longer term tax policy reforms that will level the playing field in the fuels market. The infrastructure build out proposed in our Fueling Freedom proposal will help open the market to reduce our dependence on foreign oil, improve our environment, create U.S. jobs that can’t be outsourced and strengthen our national security.”

ACE, Ethanol, Ethanol News, Growth Energy, RFA

House Passes Tax Bill with Biofuel Incentives

Cindy Zimmerman

Congress burning the midnight oil passed the tax cut legislation that will help the United States burn less foreign oil.

The final vote was 277-148 on the Middle Class Tax Relief Act of 2010 (H.R. 4853) that now goes to the president’s desk to be signed into law. Despite opposition from some Democrats the bill passed without any changes. In addition to extension of unemployment benefits and Bush-era tax cuts, the bill extends the blenders tax credit for ethanol and retroactively extends the biodiesel tax credit that expired at the end of 2009.

Specifically, the bill extends the Volumetric Ethanol Excise Tax Credit (VEETC) through 2011 at the current rate of 45 cents per gallon, as well as the associated tariff on imported ethanol at the existing 54 cent level. The bill also extends through 2011 the 10 cent per gallon producer tax credit for small ethanol producers producing no more 60 million gallon of ethanol a year. The tax credit is applicable to just the first 15 million gallons of production for eligible producers.

In addition, the measure extends through 2011 the $0.50 per gallon alternative fuel credit and the alternative fuel mixture tax credits and the 30 percent investment tax credit for alternative vehicle refueling property for one year.

Biodiesel, Ethanol, Ethanol News, Government

Butamax Advanced Biofuels Recieves Patent

Joanna Schroeder

Butamax Advanced Biofuels LLC announced today that they have received a patent from the U.S. Patent and Trademark Office (USPTO). Patent number 7851188 encompasses Butamax’s isobutanol producing biocatalyst under the title “Fermentive Production of Four Carbon Alcohols”. This in one of several patents that the company has filed across the biofuels value chain for its work in biocatalyst, bioprocess and fuels, including biobutanol, a drop-in fuel. Many consider drop-in fuels to have much greater advantages and benefits than first generation fuels.

“This biocatalyst patent is a reflection of our first-mover position in isobutanol. As more of our patent portfolio matures, our patents will play an important role in our efforts to develop and commercialize biobutanol for the global transport fuel market,” said Tim Potter, CEO of Butamax.

Just last month, the company unveiled its biobutanol technology laboratory in the city of Paulínia, São Paulo state, in Brazil and they also have a start-up demonstration facility in Hull England. Butamax was also recently named to Biofuels Digest’s coveted 50 Hottest Companies in Bioenergy.

“We look forward to sharing more details about our commercialization efforts in the near future,” concluded Potter.

biobutanol, Company Announcement

Stability Returns to Global R&D Funding

Joanna Schroeder

According to an analysis performed by Battelle Memorial Institute and R&D Magazine, the global research and development (R&D) outlook for 2011 will be more stable and positive and is emerging from one of the worst recession eras in recent times. With this in mind, R&D managers are prepared to see moderate, but sustainable growth and more global competition for resources and market share.

In more tangible terms, R&D spending is expected to increase by 3.6 percent in 2011 to $1.2 trillion; however, in the U.S. this number is only expected to climb by 2.4 percent over the 2010 numbers reaching just over $405 billion in 2011. Regardless of a number that appears to be minor, the U.S. is positioned to be the dominate region for research and investment.

When you hone in on energy R&D, the report notes that in this category, overall R&D budgets are low compared to the percent of R&D versus revenues of companies in other categories. The companies spending the most in R&D are: Exxon Mobil, Chevron, ConocoPhillips, USEC, First Solar, Cree, McDermott International, A123, SunPower, and FuelCell Energy.

The authors write, “Unlike defense, outcomes and benefits from federal energy research are realized largely in the private sector. Moreover, DOE’s research investment fills a critical gap in private sector innovation capacity. The relatively low level of R&D spending in the regulated, capital-intensive energy sector is unlikely to achieve the affordable, abundant, sustainable, secure energy supply that will be necessary for the U.S. to maintain global economic leadership in this century.”

“At the same time, public-private collaboration and commercialization are necessary to deploy energy innovation at scale, since the government controls little energy production or distribution capacity (except fossil reserves on federal lands).”

The conclusion in this sector by the report authors is that the private sector lacks the full scope of resources to accomplish the necessary research that is required to meet the demand for sustainable and affordable energy. They also note that the government lacks the means to deploy energy innovation at scale to meet policy goals and stresses that collaboration and commercialization are essential to see success.

You can download a copy of the 2011 Global Funding R&D Forecast here.

biofuels, Electricity, Energy, Geothermal, Smart Grid, Solar, Wind

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