Ethanol Tax Credit Said to be in Deal

Cindy Zimmerman

Word is that the ethanol tax credit and possibly other renewable energy incentives will be included in the deal being cut on Capitol Hill this week.

Bloomberg has reported that Democratic Senators Ben Nelson (D-NE) and Dianne Feinstein (D-CA) both say the Volumetric Ethanol Excise Tax Credit (VEETC) for blending ethanol with gasoline is part of the package. Feinstein opposes the ethanol tax credit, while Nelson approves. Reuters reports that Rep. James Clyburn (D-SC) said earlier today that the tax credit should be included.

The devil is still in the details, including the length of an extension and amount of the credit, according to Matt Hartwig with the Renewable Fuels Association, who said that lawmakers were reported to be ironing those out and confirmation may yet come by the end of the day.

Ethanol, Ethanol News, Government, RFA

ZeaChem’s Cellulosic Biorefinery Within Sight

Joanna Schroeder

ZeaChem’s cellulosic biorefinery is within sight. The company has announced two recent milestones in the process for their 250,000 gallons-per-year plant to go online in 2011. First, they secured full construction funding for their facility including a $25 million grant from the U.S. Department of Energy to be used toward the cost of constructing the front and back-end cellulosic process components. Once complete, the biorefinery will convert biomass to fuel (ethanol) and chemicals.

Second, ZeaChem has obtained a guarantee maximum price under the Engineering, Procurement and Construction agreements with engineering firm Burns & McDonnell, for construction of the core facility. The biorefinery will be located in Boardman, Oregon and is currently under construction with foundations already being poured.

“Since 1898 we have built a reputation of making our customers successful with practical technology advancements and predictable costs,” said John Nobles, President, Process & Industrial Group at Burns & McDonnell. “We look forward to helping ZeaChem deploy their technology.”

Jim Imbler, President and CEO of ZeaChem concluded, “ZeaChem has successfully completed the financial milestones to ensure that our biorefinery project can be completed on budget and on schedule. We look forward to beginning cellulosic ethanol production in 2011.”

Cellulosic, Company Announcement, Ethanol

ACORE Calls for Global Renewable Energy Standard

Joanna Schroeder

During COP-16, the ongoing global climate talks taking place in Cancun, Mexico, the American Council on Renewable Energy (ACORE) called for a global agreement on the adoption of a 25 percent renewable energy standard by the year 2025 to be called the Global Renewable Energy Standard (G-RES). In addition, ACORE went further and asked the International Renewable Energy Agency (IRENA) to be designated as the lead agency to support the implementation should an agreement be passed.

“The world seeks leadership and guidance on the best path to a cleaner, safer environment and stable atmospheric ecosystem. But it is clear to most of us that there is no single path – that this is a matter of many paths that together get the world to where it needs to be,” said Michael Eckhart, President of ACORE.

He continued, “We know today that three of the cornerstone paths to climate protection are the adoption of renewable energy, investment in greater energy efficiency, and protection of the rainforests as the Earth’s lungs. It is time to have concerted action on each of those three paths, getting started on what we know will work. I believe we can agree on the adoption of renewable energy here this week at COP-16, and we hereby call on the conference to introduce the measure and test it with a vote. We believe it can pass, and call on other associations and NGOs to encourage their governments to agree.”

ACORE put forward the following draft resolution that they believe most countries can meet while still achieving economic growth and employment.

RESOLVED, that the undersigned nations commit to a Global Renewable Energy Standard (G-RES) in the amount of 25% by the year 2025. That is, that each signatory nation shall hereby be committed to a goal of supplying not less than 25% of its national energy supply from renewable energy sources, herein defined as wind, solar, hydro, ocean, geothermal and biomass sources of electricity, fuels, heat and other end-use forms of energy; and to a process of international collaboration through the International Renewable Energy Agency (IRENA) as the designated lead agency for implementation. The G-RES shall provide for two implementing mechanisms: direct installation of renewable energy systems sufficient to meet the goal, and the sale/purchase of Global Renewable Energy Certificates (G-RECs) between nations.

In the past, other groups have signed a memorandum of understanding on the 25 percent by 2025 goal including ACORE, the Chinese Renewable Energy Society, the Chinese Renewable Energy Industries Association, the European Renewable Energy Council, and the World Council for Renewable Energy (WCRE). In addition, other groups around the world have promoted a “25×2025” goal including the Energy Future Coalition in the U.S.

conferences, Energy, Environment, global warming

Hawaii Hydrogen Initiative Announced

Joanna Schroeder

California is not the only state to take on a “hydrogen highway“. This week, General Motors (GM) and The Gas Company (TGC) have launched an initiative to make hydrogen-powered vehicles and a fueling infrastructure a reality in Hawaii by 2015. Ten companies, agencies and universities have joined the program, called the Hawaii Hydrogen Initiative (H2I) in what participants hope will be become an essential piece of the state’s energy program.

“Hydrogen, used as a fuel, will reduce our dependence on petroleum starting today,” said Jeff Kissel, TGC president and CEO.

According to a press release from GM, they are the “leader in hydrogen fuel cell vehicles” and the “first to field the world’s largest fuel cell demonstration fleet of more than 100 vehicles”. The release also stated that TGC currently produces enough hydrogen to power up to 10,000 fuel cell vehicles with the capacity to produce more. Yet to be determined as part of the program is how to best distribute the hydrogen but the companies are looking at the possibility of using existing natural gas pipelines.

In 2008, the state launched the Hawaii Clean Energy Initiative (HCEI), a partnership with the U.S. DOE with a goal of generating 70 percent or more of Hawaii’s energy through energy efficiency and clean, renewable resources such as solar, wind, wave, biofuels, and geothermal. The goal of H2I is to make hydrogen available to all of Oahu’s 1 million residents by 2015 with the installation of 20-25 hydrogen stations throughout the island.

“In Hawaii, we want to address the proverbial chicken or egg dilemma,” said Charles Freese, executive director of GM Fuel Cell Activities. “There has always been a looming issue over how to ensure that the vehicles and the necessary hydrogen refueling infrastructure are delivered to market at the same time. Our efforts in Hawaii will help us meet that challenge.”

What was not discussed in the release was the cost for Oahu residents to purchase a hydrogen fuel cell vehicle nor what the cost will be to fill up the tank.

Hydrogen

Ohioan Wants Ditches for Biodiesel Crops

John Davis

Reflecting a trend that started in Utah and has been copied in several other states, an Ohio man wants to see the ditches and medians along the interstates used to grow oilseeds, such as safflower, dwarf sunflower and canola, to make into biodiesel.

This article from the Columbus (OH) Dispatch says Mark Schaff, a member of Etna Township’s economic-development committee, got the idea after reading about a similar program in Utah and the national movement called FreeWays to Fuel:

North Carolina planted crops this summer, and programs are to start next summer in Minnesota, Michigan, Virginia and Tennessee.

Ohio spends about $17 million a year mowing state rights of way, he said.

Dallas Hanks, a doctoral student at Utah State University, originally pitched the idea to Utah transportation officials in 2006. The 47-year-old said the years of trial and error there have taught him valuable lessons about growing crops on roadsides that can now be adapted to other locations.

After some setbacks, Hanks said, he was able to develop planting and harvesting methods that allowed the crops to flourish on heavily compacted road gravel covered by a thin layer of topsoil, conditions similar to most freeway rights of way.

“We’ve been planting on sidewalks, in terms of compaction of soil,” Hanks said.

Ohio Department of Transportation officials have raised concerns about safety of those planting and harvesting crops in the ditches and medians, but proponents are quick to point out the oilseeds only would have to be tended to in the spring planting and fall harvesting … much less time than when maintenance crews have to continually mow those areas. Plus, farmers would only collect a share of proceeds generated and already have the equipment, eliminating those costs as well.

Biodiesel

Volvo Tests Biogas, Biodiesel in Airport Snow Sweepers

John Davis

In what could end up being a great test of biodiesel in cold weather (and there’s still plenty of detractors who swear against the green fuel in cold climates) Swedish auto maker Volvo will be testing biogas, and eventually biodiesel, in an airport snow sweeper in the Scandanavian country.

This company press release says that, in partnership with Schmidt and Swedavia, Volvo will have two nine-liter engines running on the alternative fuels in the sweeper:

The state-owned company Swedavia aims to make all of its 14 airports in Sweden carbon-neutral in terms of upkeep and maintenance. Daily operations involve the deployment of an extensive fleet of machinery comprising Volvo products featuring customized equipment, including snow removal machines that keep the runways clear of snow.

In partnership with the German customer Schmidt, the Volvo Group has developed a snow sweeper that uses Volvo engines fueled by a mixture of compressed methane and diesel.

“We have combined the superior efficiency of a diesel engine with the advantages of biogas. This has resulted in an engine that is significantly more energy-efficient than traditional gas-powered engines in which the biogas combusts in an Otto cycle,” says Inge Horkeby, Director Environmental Affairs AB Volvo.

The test vehicle’s cab unit is the front section of an A25E articulated hauler from Volvo Construction Equipment, equipped with a nine-liter diesel engine converted to gas. In the rear section a similar engine from Volvo Penta is used to power a roller brush and a snow-blower unit that expels the remaining snow at a speed of 130 m/s. While the Volvo Group already has trucks and buses that are powered by biogas, this is the first time that Volvo CE and Volvo Penta are showcasing a product equipped with biogas-powered engines.

If there’s any place that would know snow, it would be Sweden! I’m still trying to get some video or a picture of this snow sweeper in action. I’ll update this post when I find it.

Biodiesel, biogas

Introducing The ZimmPoll

Chuck Zimmerman

Starting today we’re launching a new feature on all the ZimmComm New Media news websites, including Domestic Fuel. This is a weekly quick-vote style poll which we’re affectionately calling the ZimmPoll.

The ZimmPoll is designed to gauge your opinions on a range of topics, including agriculture and agribusiness, emerging technologies and consumer trends. Look for a new poll each week in the sidebar on Domestic Fuel and on AgWired.com, PrecisionPays.com and WorldDairyDiary.com.

The ZimmPoll is sponsored by Rhea + Kaiser. “Target-audience opinions and insights are key to the success of all of our businesses today,” says Diane Martin, president and CEO of R+K. “We hope ZimmComm readers will benefit from – and have a little fun with – these real-time opinions of their ag industry peers.”

Start now and stay tuned for a new ZimmPoll each week. You’ll see results immediately, and we’ll also publish a weekly results recap where you’ll be able to share additional comments and ask questions about the week’s poll question.

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

ZimmPoll

Why Do You Believe in Biodiesel?

John Davis

Maybe it’s the renewable nature of the fuel. Maybe it’s the fact that the fumes from some of it smells likes french fries. Maybe, my personal favorite, it helps this country get off its foreign oil addiction. Well, whatever your reason for believing in biodiesel, the National Biodiesel Board is inviting you to put your thoughts onto video:

The best of the best clips will be used during the 2011 National Biodiesel Conference & Expo, Feb. 6 – 9 in Phoenix, showcased on the National Biodiesel Board’s web site, Facebook Fan Page, and other communications where biodiesel is at work.

Make your voice heard as our industry moves forward!

The statements must be submitted in the following format: “I believe in biodiesel because….”

You can check out the National Biodiesel Board’s site and see how some of the NBB’s staffs’ examples to get you started. My personal favorite is my friend Jessica Robinson’s video, where she mentions her best friend’s husband, who is in the Marine Corps serving overseas.

Biodiesel, Biodiesel Conference, NBB

Ethanol Co-product Publication Update

Cindy Zimmerman

A publication that provides information for users of the ethanol co-product distillers dried grains (DDGS) has been updated.

A new edition of “Feeding Corn Milling Co-Products to Feedlot Cattle,” a popular publication that provides feedlot operators, animal nutritionists and others with the latest research and sound recommendations on feeding corn co-products like distillers grains to cattle, is now available from the Nebraska Corn Board and University of Nebraska-Lincoln.

This is the third edition of the publication and offers a significant update since it was last published in 2007.

“The availability and use of corn co-products like distillers grains, which are produced by ethanol plants, has increased significantly since 2007. At the same time, we’ve expanded our knowledge and understanding when it comes to recommendations that are backed by quality research,” said Kelly Brunkhorst, director of research for the Nebraska Corn Board.

“Feeding Corn Milling Co-Products to Feedlot Cattle” is a 36-page printed publication that is available free by request to the Nebraska Corn Board. Electronic copies are also available for download at NebraskaCorn.org under the publications section, or at the university’s beef.unl.edu website.


More information here from the Nebraska Corn Board.

corn, Distillers Grains, Ethanol, Ethanol News

AWEA Says “Don’t Forget About Wind Tax Credit”

John Davis

As much of the talk on this blog has focused on the renewal of the biodiesel and ethanol tax credits (see Cindy’s post), the leading advocacy group for wind energy in this country is reminding Congress of the danger of not including its green energy in the package to renew tax credits.

This press release from the American Wind Energy Association says tens of thousands of American jobs would be in peril if the 1603 investment tax credit for renewable energy is not part of the tax break renewal package:

“We have people being laid off right now, and we expect to see more without fast action on the tax extenders now being negotiated,” said Denise Bode, CEO of AWEA. “The 1603 tax credit extension would help bring them back as soon as possible.” According to the trade group’s research, there are over 15,000 jobs in the manufacturing pipeline alone. “We are risking those jobs by not sending a clear signal that America remains open for business in wind energy,” Bode said.

The 1603 tax investment credit saved 55,000 jobs in wind energy, as estimated by Lawrence Berkeley National Laboratory. Overall employment has reached 85,000 in the American wind industry, as installed capacity has grown 40 percent in each of the past two years. Wind now generates 20 percent of the electricity in Iowa; and on Oct. 28, high winds pushed wind power to 25 percent of the electrical generation in Texas.

AWEA officials are optimistic the credit will get extended.

Wind