KC Firm Buys Mead Ethanol Plant

Cindy Zimmerman

e3biofuelsA Kansas City investment firm has purchased a bankrupt Nebraska ethanol plant with the goal of getting it back on line by next year.

Spectrum Business Ventures (SBV) bought the assets in Chapter 11 bankruptcy of E3BioFuels in Mead, Nebraska, a patented, closed-loop ethanol production facility that both opened and subsequently shut down in 2007.

According to a company release, SBV secured a super senior position in the facility while financially restructuring it to operate profitably.

“Without SBV’s expertise in deal structuring and negotiations, this deal would not have gotten done. This is a win for the plant, a win for SBV and a win for the industry,” stated Dennis Langley, former Chairman and CEO of E3 Mead.

The Mead plant was the first-ever closed-loop system developed to produce commercial quantities of ethanol using methane gas recaptured from cow manure. The system combines a 25-million-gallon ethanol refinery, beef cattle feedlot, and anaerobic digesters to maximize energy efficiency.

Ethanol, Ethanol News

Deal May Include Ethanol and Biodiesel Tax Breaks

Cindy Zimmerman

Nobody seems to be happy about the tax breaks/unemployment benefits deal announced by President Obama yesterday and no one is sure what all it ultimately will include, but Sen. Chuck Grassley (R-IA) says that ethanol blenders tax credit and associated tariff, as well as the biodiesel tax credit may be in it.

During his regular weekly conference call with reporters this morning, Grassley said there are details that have yet to be worked out, “But I’m led to believe that the extenders of 2009 – 71 of them, including biodiesel – would be extended for the years 2010 and 2011,” Grassley said. The breaks that run out at the end of this year, including ethanol, would also be extended through 2011, so all of them would end at the same time.

Grassley says he doesn’t know if the ethanol tax credit will be lowered in the deal. “I have been an advocate that we shouldn’t change any policy in any of these extenders, and I don’t think it will be changed, but I don’t have a final answer on that,” he added. He expects the existing tax law will be extended, just changing dates, and that would include extending the associated tariff on imported ethanol as well. “You’ve got to have a tariff or you’re going to be subsidizing Brazilian sugar ethanol, and you don’t want to do that,” he said.

Listen to some of Grassley’s comments below, and thanks to Julie Harker with Brownfield Network for passing along the audio from the conference call. The questions are asked by Dan Looker of Successful Farming and Philip Brasher with the Des Moines Register. Chuck Grassley

Renewable Fuels AssociationThe ethanol industry is also unsure whether the deal will include an extension of the ethanol blenders tax credit, known as VEETC, but they are hopeful. On the Renewable Fuels Association E-xchange blog, RFA’s Matt Hartwig wrote that, while the tax package is still very much in flux, “We remain confident that VEETC will be extended, if for no other reason than to prevent shedding thousands of jobs associated with domestic ethanol production.”

“A potential tax package would be the most appropriate vehicle to which an extension of VEETC could be attached,” Hartwig says. “But other potential vehicles may also emerge. The RFA will continue to work with Congress and the Administration to identify any appropriate vehicle that will ultimately land on the President’s desk for his signature.”

Biodiesel, Ethanol, Ethanol News, Government, RFA

All I Want For the Holidays Is Some Extra Green

Joanna Schroeder

Oh, the weather outside is frightful,
But the fire is so delightful,
And since we’ve got no place to go,
Fill Out a Survey! Fill Out a Survey! Fill Out a Survey!

The snow doesn’t show signs of stopping,
And I’ve bought some corn for popping,
The lights are turned way down low,
Fill Out a Survey! Fill Out a Survey! Fill Out a Survey!

When I’ve completed the short questionnaire,
How I’ll hate going out in the storm!
So I’ll daydream about my online shopping spree,
Where I’ll buy a sweater to keep me warm.

I’ve clicked “register me to win,”
And, my dear, I may win $250.
All because it was snowing,
And I Filled Out a Survey! Filled Out a Survey! Filled Out a Survey!

I hope my rendition of “Let it Snow” hasn’t offended you too much to fill out our DomesticFuel survey. If not, those who complete the survey will have a chance to win $250. Happy Holidays and may Santa bring you some extra green this year.

Miscellaneous

Camelina-Based Biojet Fuel On Course For Success

Joanna Schroeder

According to a recent peer-reviewed paper published in the journal of Environmental Progress & Sustainable Energy, camelina-based biojet fuel reduces CO2 emissions by 75 percent compared to traditional petroleum-based jet fuel. The study also found that “green diesel” made through the same process reduces CO2 emissions by 80 percent.

“This peer-reviewed analysis proves what we’ve known for a long time – that camelina is an ideal feedstock for renewable jet fuel,” said Scott Johnson, President of Sustainable Oils. The company is working with both the U.S. Navy and the U.S. Air Force to develop camelina-based aviation fuels.“The peer-review process demonstrates without a doubt the significant CO2 reductions that camelina based jet fuel offers. Our airline and military partners can be even more confident about the benefits of using camelina-based fuels.”

The research was carried out at Michigan Tech University in conjunction with UOP, a Honeywell company and partner and a stakeholder in the camelina-based aviation fuel market. The research used camelina grown in Montana and processed into biojet fuel using UOP hydroprocessing technology.

Camelina-based biojet fuel is currently a leading contender to replace traditional jet fuel and various airlines as well as the U.S. military are testing the renewable fuel. In addition, the American Society for Testing and Materials (ASTM) is working on approvals for a specification of a renewable jet fuel, known as Hydrotreated Renewable Jet (HRJ). It is believed that standard will be fully approved by the end of 2011.

In November 2010, Sustainable Oils’ camelina-based biofuel met another key performance milestone with the Navy’s successful test of the camelina in a MH-60S helicopter. The test represented another step toward the certification of camelina-based fuels for use in all Navy and Marine aircraft.

Biodiesel, biojet fuel, green diesel

2010 Green Fuels Awards Announced

Joanna Schroeder

The 2010 Green Fuels Award recipients have been announced by the Canadian Renewable Fuels Association during the 7th Annual Canadian Renewable Fuels Summit in Ottawa-Gatineau. The awards honor pioneers in the development and commercialization of low carbon renewable fuels such as ethanol and biodiesel in Canada.

The Fuel Change Award 2010 was presented to Husky Energy Inc. for their promotion of the use of renewable fuels in Canada. Husky Energy is Western Canada’s largest producer of ethanol and one of the country’s most active in a consumer marketing awareness campaign about the benefits of ethanol blended fuels. The company’s first ethanol plant was built in 1981 and it sells its ethanol blends under the brand “Mother Nature’s Fuel”.

Greenfield Ethanol Inc. Chairman, Ken Field was awarded the Green Fuels Industry Award 2010 for outstanding dedication to the advancement of renewable fuels in Canada. In 1989, he founded Greenfield Ethanol and under his leadership, the company has grown to become the largest manufacturer and distributor of fuel ethanol, industrial ethanol and alcohol-related products in the country. Field is considered one of the original ethanol pioneers in Canada.

Biodiesel, Ethanol

Top 50 Hottest Companies in Bioenergy

Joanna Schroeder

Biofuels Digest has announced its “Top 50 Hottest Companies in Bioenergy” and this year’s top spot goes to Amyris, a renewable fuels and chemicals developer based in Florida. The rankings recognize innovation and achievement in bioenergy development and are determined by 50 percent of votes from a 75-member panel of international selectors, and 50 percent of votes from subscribers of Biofuels Digest and Renewable Chemicals Digest.

Rounding out this year’s Top 10:

  1. 1.     Amyris
  2. 2.     Solazyme
  3. 3.     POET
  4. 4.     LS9
  5. 5.     Gevo
  6. 6.     DuPont
  7. 7.     Danisco Cellulosic Ethanol
  8. 8.     Novozymes
  9. 9.     Coskata
  10. 10.  Sapphire Energy

Of the top 50 companies selected, 37 were based in the U.S. while 13 were international. In addition, 15 companies are focused on cellulosic ethanol development (down from 19 in 2009-10) and 5 are developing algae-based energy solutions (down from 7 last year). Sixteen of the companies are focused on developing “drop-in” renewable biofuels such as biobutanol, renewable diesel, green gasoline, and renewable jet fuel. This category has increased from 15 companies in last year’s poll. Lastly, 13 companies are producing technologies to create renewable chemicals.

New to this year’s list: Cargill (#36), Butamax (#38), Cosan (#40), Waste Management (#42), Dynamic Fuels (#44), KiOR (#47), Chevron (#48), and Monsanto (#49).

Click here to see the full “50 Hottest Companies in Bioenergy”.

bioenergy, biofuels

GE to Supply Brazilian Wind Project

John Davis

U.S.-based General Electric will provide more than 400 megawatts of wind turbines for a project in Brazil.

This company press release says the GE commitments will include 258 of GE’s advanced 1.5 and 1.6-megawatt wind turbines:

Customers making commitments to GE from Brazil’s 2010 Alternative Energy Auction are Renova Energia S.A, Dobreve Energia S.A. (DESA), Contour Global and Bioenergy. Projects from the four customers are located in the states of Bahia and Rio Grande do Norte.

“Being able to supply the best technology fit for Brazil’s wind conditions is at the center of our continued success in the country’s wind auctions,” said Victor Abate, vice president—renewable energy for GE Power & Water. “We are focused on making our customers the most competitive in Brazil as they concentrate on helping the country reach its renewable energy goals.”

The 2010 auction commitments build upon GE’s success in winning more than 400 megawatts of wind turbine commitments in Brazil’s first technology-specific energy auction, held in 2009.

“We have had success in winning a quarter of the megawatts awarded in the past 12 months in Brazil. These relationships support our positioning as one of Brazil’s wind energy leaders and, most importantly, represent an important step towards our long term vision as key players in this country,” said Jean Claude Robert, GE’s wind director for Latin America.

GE will supply the turbines, as well as erecting and servicing them for two years.

Wind

Canadian Canola Could Lose Out on Biodiesel Mandate

John Davis

Canadian canola could miss out on demand from Canada’s soon-to-be-implemented biodiesel mandate.

This analysis from Reuters says the country’s second most-popular crop might be a much lower choice as a biodiesel feedstock because of some ambiguity in Canada’s requirement that could be started this coming April:

Canada has finished selecting biodiesel plant proposals to receive funding from a C$1.5-billion ($1.5 billion) program, aiming to cut greenhouse gas emissions by 17 percent by 2020 from 2005 levels through mandates of 5 percent ethanol and 2 percent biodiesel in conventional fuel pools.

None of the successful proposals are for large-scale plants in Western Canada that would use canola as the main feedstock. Canada has not set a specific start date for the 2011 biodiesel mandate that would require 500 million liters per year of renewable diesel, creating uncertainty for investors.

It’s up to Canada’s environment department to make a regulatory change that sets a start date. The fact it hasn’t yet done so has left the industry impatient, although the environment minister reassured a biofuels conference this week that the government’s commitment is intact.

In the meantime, Canada has slim prospects of turning much of the yellow-flowering crop into biodiesel, even though the canola industry is counting on biodiesel production worldwide to account for 2.5 million tonnes, or 17 percent of its targeted 15-million-tonne harvest by 2015.

But if look at what some are doing in the private sector, you might feel a little more confident about north-of-the-border canola making it into biodiesel. Last week, I told you how Monsanto was upping its investment in Canadian canola in advance of the biodiesel mandate. However, canola oil still remains very popular in food applications, which would also drive Monsanto’s investment.

Biodiesel, International

Congress May Make Deal on Tax Cuts

Cindy Zimmerman

After defeating a compromise measure proposed by Sen. Max Baucus (D-MT) to extend the Bush tax cuts only for the middle class, the talk on Capitol Hill is now turning to a deal that would keep all of the tax cuts in exchange for extending unemployment benefits.

Baucus had proposed a compromise amendment late Thursday that would have continued unemployment benefits through January 2012 while extending the tax cuts to those making $250,000 or less. The measure would have also extended the blenders tax credit for ethanol for one year at a rate of 36 cents per gallon while maintaining the 54 cents per gallon tariff on ethanol imports and reinstated the expired $1-per-gallon production tax credit for biodiesel and biomass diesel and the small agri-biodiesel producer credit of 10 cents per gallon through 2011.

Domestic ethanol organizations supported the Baucus measure when it was proposed last week. “Senator Baucus’s approach is a good one, recognizing the importance of this investment and providing some market stability as good faith efforts to responsibly reform ethanol tax policy continue,” said Renewable Fuels Association President and CEO Bob Dinneen. Growth Energy CEO Tom Buis commented that the Baucus proposal for extending the ethanol tax credits was “not as high and as long as we had hoped” but that such an extension would “provide certainty in the market and give Congress the opportunity to consider longer term solutions.”

Joel Velasco with the Brazilian Sugarcane Industry Association (UNICA) was not so supportive, especially of keeping the ethanol tariff at its present rate while lowering the blenders tax credit. “The ethanol import tariff shouldn’t exist at all. But if it must, the tariff should be a direct offset of the tax credit that protects Americans from subsidizing foreign production, not a punitive trade barrier,” Velasco said.

The White House reportedly wants to see a deal done this week in Congress to extend the unemployment benefits that ran out for many last week and may be prepared to accept an extension of the tax cuts as well in order to make that happen.

Biodiesel, Ethanol, Ethanol News, Growth Energy, RFA, UNICA

Vatican Powered From Above

Cindy Zimmerman

The Vatican has unveiled a new book detailing the Holy See’s solar power initiatives.

“The Energy of the Sun in the Vatican” was presented last week during a press conference by Cardinal Giovanni Lajolo, president of the commission governing Vatican City State. It details two solar projects undertaken by the Vatican in the last two years – the installation of 2,400 solar panels on the roof of the Vatican audience hall in 2008 and a solar cooling unit for the main cafeteria in 2009. Both projects were the work of German-based SolarWorld, one of the world’s largest solar energy businesses. The Vatican reports that the solar projects have resulted in saving about 305 tons of carbon dioxide emissions.

Vatican City, which is a sovereign city-state consisting of about 110 acres with a population of around 800 people, has a goal of meeting 20 percent of its energy needs with renewable sources by 2020, the target date set by the European Union for its members. That is likely to include a fleet of electric vehicles and possibly a solar-powered electric Popemobile. That idea was discussed during last week’s press conference by Cardinal Lajolo and Milan Nitzscke, communications director for SolarWorld.

The cardinal said if a sponsor offered the pope an electric-powered vehicle that “was in working order, efficient and suitable, why not? It would be a sign of his environmental concern.” Nitzscke said the Pope’s customized vehicle could be powered with electricity from solar panels. “This is something we have to discuss with the people who are in charge of the security aspect, but of course this is possible,” he said. Because the popemobile is bulletproof, the car would be heavier than most electric vehicles so it would be a challenge to design one that could accelerate quickly.

The current traveling Popemobile is a modified white Mercedes-Benz with bullet-proof windows.

Electric Vehicles, International, Solar