Ethanol Report on Senate Passage of Tax Bill

Cindy Zimmerman

Ethanol Report PodcastIn this edition of “The Ethanol Report” we get reaction from Renewable Fuels Association president and CEO Bob Dinneen on the passage by the Senate of the compromise tax package that includes a one-year extension of important tax incentives for ethanol production and use.

Dinneen says they are thrilled with passage of the measure, which gives some stability to the industry for another year. “Would we like it to have been a longer incentive, as opposed to just a year? Certainly. But this allows us to move forward, it provides some certainty to the industry, and hopefully, it allows a more comprehensive discussion about energy tax policy to ensue next year,” he said.

Dinneen now expects the measure to pass the House with the ethanol incentives in place.

Listen to the Ethanol Report here: Ethanol Report on Senate Tax Vote

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Geological Society of America Unveils Solar System

Joanna Schroeder

The Geological Society of America (GSA) is now powered by solar. This month the building began offsetting about 35 percent of its energy use with its new 65 kilowatt (kW) rooftop solar energy system. The solar system will provide the company’s headquarters with 88 megawatt hours per year of energy. This project is one of three renewable energy projects planned for the GSA building, that will use 100 percent renewable energy (wind & solar) by January 2011.

The solar array was designed and installed by Louisville, Colorado-based Bella Energy and utilizes 298 Sharp solar panels. According to a Sharp press release, GSA’s solar power system will prevent the emission of over 160,000 pounds of carbon dioxide each year.

“We are grateful for the availability of local funding from Xcel Energy and the City of Boulder to make this investment in renewable energy possible for GSA. The Society is committed to demonstrating environmental leadership and we want other commercial and nonprofit entities to know that this funding exists,” said GSA Executive Director Jack Hess. “Bella Energy was an excellent partner, they provided us with the professional workmanship and industry expertise that helped to make this project a success.”

Earlier this year, GSA is one of 12 Boulder-based nonprofits to receive $30,000 in funding from the City of Boulder’s ClimateSmart Solar Grant Fund. The grant was supplemented by funds from the GSA Foundation and their members and Xcel Energy’s Solar Rewards Program also offered $132,000 in rebates.

“This installation is a fine example of what can be accomplished with the government funding options that are currently available,” said Eric Hafter, senior vice president of Sharp Solar Energy Solutions Group. “The GSA is an incredible organization that promotes scientific understanding of the Earth. Sharp is proud to support the GSA in their efforts to protect the Earth as well, by utilizing clean renewable energy to power their headquarters.”

Electricity, Solar

Senate Passes Tax Package

Cindy Zimmerman

The Senate has overwhelmingly passed what is likely to be an early Christmas present for everyone, including renewable energy interests, with tax credits for ethanol and biodiesel extended for another year.

The vote was 81 to 19 to pass the bill, which was primarily to extend both unemployment benefits and the Bush era tax cuts. The House is expected to take up the measure as soon as today and analysts believe that it will pass largely intact, with major concerns there being with the estate tax.

Biodiesel and ethanol trade groups were quick to praise the Senate action. “The National Biodiesel Board (NBB) is pleased by the Senate’s vote to retroactively extend the biodiesel tax incentive,” said Manning Feraci, NBB Vice President of Federal Affairs. “This will help ensure that the nation reaps the job creation, energy security, and environmental benefits associated with the expanded domestic production and use of biodiesel in the coming year.”

Renewable Fuels Association (RFA) CEO and President Bob Dinneen said in a statement that extending the ethanol incentives will help save jobs and give the industry some stability. “Members of the RFA greatly appreciate the work of ethanol advocates, led by Sen. Charles Grassley and the Obama Administration, to ensure these important job-creating provisions were included. We strongly urge the House to take up the measure as soon as is possible and to pass it before adjourning for the year,” said Dinneen.

“This bipartisan vote shows that the Senate is committed to enacting sound tax policies that invest in green industries, like ethanol,” said Growth Energy CEO Tom Buis.

Biodiesel, Ethanol, Ethanol News, Growth Energy, NBB, RFA

Minnesota Stations Offer Frequent Ethanol User Cards

Cindy Zimmerman

Three fuel stations in Minnesota are now offering drivers of Flex Fuel Vehicles (FFVs) a chance to save money with frequent ethanol user cards.

The Meadowland C-Store Cenex in Wabasso, Meadowland Farmers Coop in Lamberton and Country Pride Services in Windom are providing frequent fuel punch cards (one per household) to the first 50 flex fuel vehicle drivers starting today. The punch cards will offer a $10 discount on the fourth tankful of E85, E50, E30 or E20 fuels they purchase at those locations.

The promotion is being supported by the American Lung Association in Minnesota, Redwood County Corn Growers Association, Cottonwood County Corn and Soybean Growers Association, Minnesota Corn Growers Association, US Department of Energy Clean Cities and the Minnesota Clean Air Choice Team. For more information, see www.CleanAirChoice.org.

E85, Ethanol, Ethanol News, Promotion

Familiar Face Goes to Work for Protec Fuel

Cindy Zimmerman

A familiar face in the ethanol industry, and a familiar name here on Domestic Fuel, is now working for Florida-based Protec Fuel.

Michelle Kautz has been hired as the company’s Public Relations/Development Director to manage Protec’s marketing and public relations programs along with coordinating sales efforts targeted at fuel distributors and retailers.

Kautz has been working in the ethanol industry for nearly 10 years. She formerly was the Market Development Director at Growth Energy where she was responsible for assisting in the installation of E85 and ethanol blender pumps. Prior, she held the position as the Deputy Director of the National Ethanol Vehicle Coalition (NEVC). She also is a freelance writer for ZimmComm New Media where her blogs can be read right here on Domestic Fuel.

“We are excited to Have Michelle on our team. She will have an immediate positive impact due to her extensive experience in working on E85 programs with distributors and retailers,” noted Todd Garner, CEO for Protec Fuels. “With Michelle at Protec, we can now better serve our existing customers to help them grow their ethanol volumes and also expand our business more quickly through new retailers.”

As a footnote, Growth Energy closed its Jefferson City, Missouri office – which was formally NEVC – as of December 1. NEVC merged with Growth Energy back in June 2009 to form the Market Development arm of the ethanol organization. Phil Lampert, who was also part of the Growth Energy Missouri office and a long-time ethanol industry promoter, says he is “still working on E85 infrastructure as a consultant to several key ethanol marketers and producers.”

E85, Ethanol, Flex Fuel Vehicles, Growth Energy

ZimmPoll Results Are In

Chuck Zimmerman

The results of the first ZimmPoll are in. The question was “How do you think agricultural interests will fare in the new Farm Bill?” We thought we’d give you an easy one to start. The results were pretty well mixed with “Too early to tell” getting the most votes. You can add your comments about the question or the results using the comment feature at the top of the post. Feel free to let us know what you think.

Our first poll had participation from 5 countries including 25 states in the U.S. The top ten states with participants were IL, CA, VA, IN, NJ, TX, KS, MO, NY and SD. Thanks to all of you.


The new poll is now live and the question is, “Do you participate in social media?” Social media consists of Twitter, Facebook, YouTube, Flickr, blogs, podcasts and a whole variety of other services. Let us know by taking the poll and next week we’ll post the results and you can add your comments add feedback at that time. Feel free to suggest questions for our poll anytime too.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

ZimmPoll

Opinion Piece Defends Palm Oil Biodiesel

John Davis

A decision by Hawaiian Electric Co. (HECO) to build a biodiesel plant that will convert palm oil into biodiesel to be used by the utility to produce electricity has garnered the ire of some environmentalists, who decry the use of palm oil for the green fuel.

But this opinion piece in the Honolulu Star Advertiser defends the plant. Tom Tanton, president of California-based T2 & Associates, an energy technology and economic development firm, points out that the palm oil will come from Malaysia, a country that has committed to conserving 50 percent of its forests … much more than the 10 percent average under United Nations agreements:

Contrary to claims from the German environmental group leading the campaign against the HECO plan, palm oil is the most sustainable biofuel on the planet. More fuel can be produced on a smaller footprint from the oil palm than alternative biofuels such as corn-based ethanol or German rapeseed oil.

Palm oil is a perennial crop that can be converted to biodiesel, while other vegetable crops like soya that can create biodiesel are annual. Palm oil requires less tillage, resulting in much fewer greenhouse gases released into the atmosphere. It also requires considerably fewer energy inputs to grow and maintain.

In a recent statement, HECO correctly stated “biofuels are a part of Hawaii’s clean energy future. Biofuels allow us to switch from ‘black’ to ‘green’ fuel in our existing generators, reducing dependence on and vulnerability to imported oil.”

Of all possible biofuels, palm oil is king for its affordability, efficiency and eco-friendliness. Denying the HECO agreement would hamper wider adoption of sustainable practices worldwide.

The piece goes on to point out that some domestic sources of biodiesel feedstock, such as jatropha, aren’t scalable for a plant like this one. And, right now, Hawaii doesn’t have enough other renewable energy sources, such as wind, solar and geothermal, to be cost-effective. Tanton concludes that this palm-to-biodiesel plant will help the Aloha State meet its energy needs, while providing jobs for an impoverished part of Malaysia.

Biodiesel, Opinion

2010 Pivotal Year for Verenium

Joanna Schroeder

This year was a pivotal for Verenium in many ways both operational and financial as announced by the company today. In particular, on the financial side, the company raised $98.3 million and reduced operating losses through the sale of assets to BP; repurchased $21 million of convertible notes, extinguishing all remaining 8% notes; and are on track to achieve revenue and gross margin targets for 2010.

From an operational perspective, the company highlighted several accomplishments, including, but limited to the following:

  • • Launched Xylathin™, a highly active enzyme designed to significantly improve the economics of fuel ethanol production from cereal grains such as wheat.
  • • Obtained regulatory approval to sell Purifine® PLC in China, which together with existing approvals to sell the enzyme in Argentina, Brazil and the US, covers all major oilseed processing markets.
  • • Extended a successful marketing partnership with Alfa Laval and entered into a new marketing partnership with Desmet Ballestra, both of which leverage global sales forces to market Purifine PLC enzyme for degumming edible oils.
  • • Licensed an enzyme from the Company’s product pipeline to Bunge targeted at creating healthier, higher value edible oil.

“2010 has been a significant year of transition for Verenium as we moved from being biofuels oriented to being focused on building the next leading industrial enzymes company,” said Carlos Riva, Chief Executive Officer at Verenium. “We believe we are now well positioned — both operationally and financially — to execute on our business plan and to achieve our goals.”

In addition, Verenium has also set its financial guidance and corporate goals for 2011 that include achieving revenues between $55-60 million with a product gross margin of $21-24 million. In addition, they have set their R&D budget for $14-14 million and their SG&A between $19-21 million. Other budget items of note including the allocation of $10 million to build a new facility in San Diego, CA during the next two years.

“The guidance we are providing today lays out the solid growth in both revenue and gross margin that we believe we can generate from our commercial portfolio now that we have the ability to make the investments required for its development. Further, we are managing both R&D and SG&A expenses to a level that we believe is more sustainable for the Company moving forward,” said James Levine, Chief Financial Officer at Verenium. “Importantly, taken together, we believe these steps demonstrate our focus on advancing our pipeline products to commercial status and achieving profitability.”

Company Announcement, Ethanol

Book Review – Energy And Climate Wars

Joanna Schroeder

The debate about climate change change is over right? Wrong. At least according to authors Peter C. Glover and Michael J. Economides in their book, “Energy and Climate Wars.” The premise of the book is that politicians (aka Al Gore) green ideologues and media elites (What, me? Oh, I’m not a media elite.) are undermining the truth about energy and the climate and that is, well, to put it simply, is that it is not man made and carbon dioxide is not killing us quickly, or even slowly for that matter. It’s a hoax. A farce. A well orchestrated campaign designed to make a few rich in the new “carbon” or for some “clean/green economy” billionaires.

Now before you start clicking the button to post a comment, these are the views of the authors, not me. With that reminder, let me regale you with the overarching premise of the book. According to the authors, the book was written to give the reader a grasp on “the power politics of energy” or more specifically on the social ideology that increasingly influences and impacts you.

What is real, they say, is the threat on your energy security, but not for the reasons you believe (we’re running out of oil/peak oil, or that alternative energies will substitute for ‘dirty’ hydrocarbons). The REAL threats to your energy security are numerous one being alternative energy. In other words, our lifestyle as we know it (military, cars, homes, gadgets, etc.) is predicated on energy, energy that grew out of the Industrial Revolution. If we scale back on fossil-fuel based energy sources, oil, coal, natural gas, we are going to lose our way of life, our military will suffer, and ultimately, our energy security will be at risk.

The authors write, “Now let’s be clear before we go any further. Nobody is against research into new energy technologies, or demurs from the small-scale, purely supportive value of renewable energy sources from wind power (it may help keep your out-house lit) to solar power (expensive but it might give you hot or tepid bathwater) to geothermal use (maybe, but only in really cold countries). The problem is not the pin-prick, ad hoc uses to which they may be put, but the harnessing of larger projects on a commercially viable basis. On an industrial scale, they amount to nothing more than incredibly uneconomic business propositions that require the constant lifeline of government intervention and tax subsidy. The stark reality is that current technology offers no realistic replacing hydrocarbons for decades to come, if ever.” (All emphasis are those of the authors.)

Energy and Climate Wars reads a little like a Michael Crichton book (scientific thriller) dropped into the the plot of a John Le Carré global spy thriller, mixed with controversy of WikiLeaks adapted for the screen by the producer of the movie Wag the Dog.

If you question the whole global climate change movement, then you should consider reading this book. If you are one who believes that global climate change exists and that these two are the “alarmists” distracting us from the real crisis, you might want to read this book to. Why? It’s always easier to fight your enemies if you have their playbooks. Well, for the rest of you, consider a less controversial read…this one may give the weak of heart a stroke.

book reviews, global warming

DOE Offers Funding for Next Generation Biofuels

Cindy Zimmerman

The U.S. Department of Energy is now accepting applications for up to $30 million in total funding for small-scale process integration projects that support the development of advanced biofuels that will be able to replace gasoline or diesel without requiring special upgrades or changes to the vehicle or fueling infrastructure.

“Developing the next generation of American biofuels will enhance our national energy security, expand the domestic biofuels industry, and produce new clean energy jobs. It will help America’s farmers and create vast new opportunities for wealth creation in rural communities. By investing in innovative approaches and technologies, we can continue to move the biofuels industry forward and grow our economy,” said Energy Secretary Steven Chu in a release from the agency.

The projects will focus on optimizing and integrating process steps that convert biomass into biofuels and bioproducts that will eventually be used to support hydrocarbon fuels and chemicals. These process improvements could include pretreatment methods that alter the biomass to improve the yield of sugars in subsequent process steps, less costly and more efficient enzymes that produce sugars, and fermentation organisms and catalysts that convert the sugars into fuel and chemical intermediates. Successful applicants will demonstrate the research potential to improve the economics and efficiency of their proposed process.

Read more here.

biofuels, Cellulosic, Government