FERC Attempts to Improve Grid Access for Solar & Wind

Joanna Schroeder

Earlier this month, the Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking aimed at removing barriers to the integration of wind and solar and other forms of alternative energies to the wholesale power grid. The 60 day comment period is in full swing and many in the wind industry are actively submitting comments.

According to a FERC release, the proposed rule would reform the Open Access Transmission Tariffs (OATT) and the Large Generator Interconnection Agreements filed by public utility transmission providers to require them to offer services that will allow for a more efficient integration of variable energy resources such as wind, solar and hydrokinetics into the grid system. This has been a challenging and ongoing issue for alt energies and the passage of the rule would signify the country’s commitment to renewable energy.

“Most of the new power plants for which developers are seeking access to the grid are variable resources such as wind and solar generators,” FERC Chairman Jon Wellinghoff said. “This proposal will help the Commission to cost-effectively integrate these and other variable generators into the grid in a way that helps maintain reliability and operational stability.”

According to Gregory K. Lawrence, with law firm McDermott Will & Emery and the head of the firm’s renewable business and his associate Mustafa Ostrander, the three proposed reforms address “discrete operational protocols” and should be viewed as “complementary parts of a package.” The reforms include:

  • Intra-hourly Transmission Scheduling—FERC proposes requiring public utility transmission providers to give their customers the option of using more frequent transmission scheduling intervals (15-minute intervals) within each operating hour.  This would allow transmission schedules to reflect more accurately power production forecasts, load profiles and other changing system conditions, while also allowing the system’s variability to be managed more effectively.
  • Power Production Forecasts—The proposed rulemaking also requires public utility transmission providers to amend their pro forma Large Generator Interconnection Agreement to incorporate provisions requiring interconnection customers with VER-generating facilities to provide to public utility transmission providers certain meteorological and operational data.  FERC believes this requirement will result in greater situational awareness and efficiency within the unit commitment, dispatch and reliability assessment process.
  • Generic Ancillary Service Rate Schedule—FERC also proposes adding a generic ancillary service rate schedule to the pro forma Open Access Transmission Tariff. Public utility transmission providers would be required to offer generator regulation service, to the extent physically feasible, to transmission customers using transmission service to deliver energy from a generator located within the transmission provider’s balancing authority area.

FERC’s goal with the proposed rules is to create a “reasonable foundation upon which public utility transmission providers will be well-positioned to manage system variability associated with increased numbers of VERs,” but acknowledges that these rules do not solve all the integration challenges.

Electricity, Smart Grid, Wind

Florida Biodiesel Firm Acquires Puerto Rico Company

Cindy Zimmerman

A Florida-based biodiesel firm is investing in a Puerto Rico company’s algae biofuels research.

biodieselAlternative Fuels Americas (AFA) announced today that it is acquiring Sustainable Agro Biotech of Puerto Rico, which has been developing proprietary technologies “to recycle carbon dioxide emission into microalgae varieties with robust growth and oil production capabilities and to achieve commercially feasible harvesting of microalgal products.” AFA will work with the Sustainable Agro Biotech team to further its research and develop a viable algae-to-biofuels capacity.

AFA CEO Craig Frank says they are very excited about the acquisition. “We have had an interest in algae for quite some time and have been looking for a company that fit well with our comprehensive approach to biofuel. This acquisition opens up new opportunities for AFA, and broadens our operational possibilities, both in terms of geography and the types of feedstock we have at our disposal.”

AFA has facilities in Gainesville, Florida and a 10 acre facility in Puerto Rico in partnership with University of Puerto Rico, Mayaguez.

Biodiesel

2011 Renewable Fuels Standards Set

Joanna Schroeder

The EPA has finalized the 2011 percentage standards for the four categories of fuel under the Renewable Fuels Standard (RFS2). As such, each producer and importer of gasoline and diesel determines the minimum volume of renewable fuel that it must ensure is used during the year in its transportation fuel. The required use of biofuels will increase each year until reaching the 36 billion gallons of renewable fuels level by 2022.

The final 2011 overall volume and standards are:

  • • Cellulosic biofuel – 6.6 million gallons; 0.003 percent
  • • Biomass-based diesel – 800 million gallons; 0.69 percent
  • • Advanced biofuel – 1.35 billion gallons; 0.78 percent
  • • Renewable fuel – 13.95 billion gallons; 8.01 percent

As predicted, the EPA has finalized a lower 2011 cellulosic volume than the original request made this past summer citing lack of commercial scale availability of advanced biofuels. However, despite the “set-back” the EPA remains optimistic that availability of cellulosic ethanol will grow in the next few years.

It should also be noted that the renewable fuel category includes starch-based ethanol, such as corn-ethanol, which is capped at 15 billion gallons in RFS2. This being said, the corn-ethanol industry is fast approaching a “production wall” per se and as a result, is lobbying through its “Ethanol Road Map” to increase the amount of corn-based ethanol allowed under RFS2.

*UPDATED POST*

Several organizations have responded to this story including Chris Thorne, the Public Affairs Director for Growth Energy. “There’s no question that the potential for cellulosic ethanol remains on track and that is why it is so important to have real targets to give confidence that there will be a market for those who are investing in the industry. Some of the pilot projects are on the edge of delivering commercial-scale volumes of cellulosic ethanol to the market, for a price that is competitive to gasoline.”

Thorne continued, “But not all pilot projects are that close, and that’s in large part because the market for ethanol is capped by arbitrary regulation in the U.S. What’s preventing the growth of cellulosic ethanol in the transportation fuels market is the lack of access to the market – and without that market, we’re not drawing the necessary investment. That’s why Growth Energy is pushing our Fueling Freedom proposal, which would reform market access and let cellulosic ethanol compete with gasoline derived from foreign oil.”

In addition, the Bob Dineen, the President of the Renewable Fuels Association stated, “The RFS was designed in part to ensure the evolution of America’s biofuels industry is successful. By reducing the standard for cellulosic biofuels, EPA is accurately reflecting the difficulties cellulosic biofuel technologies have encountered in obtaining the capital needed to fully commercialize. However, being aware of this fact, EPA should have been and must be careful to keep cellulosic biofuel targets ambitious so as to stimulate the kind of investment these technologies need to finish commercialization.”

Biodiesel, biofuels, Cellulosic, Ethanol

RFA Calls on EPA to Update RFS2 ILUC Models

Joanna Schroeder

Earlier this month, the California Air Resources Board (CARB) made a positive step for ethanol by updating its indirect land use models in the Low Carbon Fuel Standard (LCFS). This in effect, will reduce the ILUC penalties in half. Unfortunately, the new rule doesn’t take effect until mid-2011 although LCFS kicks in on January 1, 2011.

In light of this change, the ethanol industry is calling for the Environmental Protection Agency (EPA) to also reevaluate its modeling of lifecycle GHG emissions as defined in the Renewable Fuels Standard (RFS2). Recently the Renewable Fuels Association (RFA) submitted a letter to EPA Administrator Lisa Jackson asking for this very change. In fact, EPA was represented on CARB’s LCFS Workshop and has publicly highlighted the fact that its ILUC results were similar to those originally obtained by CARB.

“The proposed changes to the California LCFS analysis are likely to result in substantially lower ILUC values, meaning EPA’s analysis for the RFS2 will be inconsistent with the latest science being adopted by CARB. Because EPA was represented by two staff members on the LCFS Expert Workgroup that recommended the changes to CARB’s LUC analysis, we are curious as to whether EPA similarly plans to revisit its LUC analysis for the RFS2 and incorporate more up-to-date assumptions and data,” wrote RFA President and CEO Bob Dinneen in a letter dated November 23, 2010.

According to RFA, while EPA and CARB used different modeling approaches, some of the changes being adopted by CARB would result in lower values for ILUC in EPA’s RFS2 as well. Currently, corn-based ethanol has been given a 20 percent GHG emission reduction number in RFS2, but the industry wants to see this number much higher. Other areas that RFA would like EPA to visit again are the treatment of crop yields on newly converted land, treatment of carbon sequestration in harvested wood products and the effect of higher prices on crop yields.

The second purpose of the letter to Jackson was to respond to the EPA’s letter sent to RFA on September 29, 2010. Back in September, the RFA wrote to EPA “examining the impact of volume increases for individual biofuels in isolation of one another exaggerates the LUC impacts and misrepresents the real-world progression of the RFS2 as required by [the Energy Independence and Security Act].” They have argued, and continue to argue, that EPA’s isolation approach to calculating ILUC values for the various biofuels covered under the RFS2 ignores the dynamic relationships that exist between the fuels, the feedstocks and in the marketplace.

The bottom line, says RFA, is that the science behind ILUC is constantly evolving and requires continual monitoring and updating to ensure the best available science is being utilized to make decisions.

biofuels, corn, Ethanol, Indirect Land Use, RFA

CHS Energy Remains Bullish on Ethanol

Cindy Zimmerman

CHSCHS Energy is bullish on ethanol.

That’s according to CHS Energy Director of Sales Mark Fenner, who was giving interviews at the recent National Association of Farm Broadcasting meeting in Kansas City. “We don’t know about the tax incentives, but even without it, I think we’re going to see strong use for ethanol because it is less expensive than traditional gasoline, so when you blend it – whether at E15 or E10 – it does lower the price,” said Fenner.

CHS Energy is part of a national diversified company owned by farmers, ranchers and cooperatives that operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex brand refined fuels, lubricants, propane and renewable energy products. Fenner says the move to a 15 percent ethanol blend for some vehicles is very positive for agriculture, but it does present challenges for retailers. “Our stance was could we look at an E12 where every vehicle could use that and retailers wouldn’t have to split the islands based on newer or older cars,” he said.

CHS also distributes biodiesel and Fenner says that market is less positive for them at the moment. “The flat price of biodiesel compared to traditional diesel has been a big hindrance. We just haven’t seen the demand in that product that we had hoped to see,” he said. “We’re an agricultural-owned company so we wanted to see that product take hold, but it’s just difficult.” He says they still sell a good bit of biodiesel, but it continues to be a struggle.

Listen to a short interview with Mark Fenner here: CHS Interview

Biodiesel, Ethanol, Ethanol News

Loss of Tax Break Prompts Dumping of Biodiesel Plant

John Davis

The loss of the federal $1-a-gallon biodiesel tax incentive is part of the reason a green energy company has decided to give its biodiesel plant to creditors.

The Dallas Morning News reports that GreenHunter Energy Inc. made the move to give its Houston biodiesel plant to its debt holders to avoid being delisted by the New York Stock Exchange:

GreenHunter said that it transferred all of the ownership shares of its GreenHunter Biofuels Inc. unit to a trust for holders of its 10 percent debentures due in 2012. GreenHunter had defaulted on the notes, and the company’s Houston refinery was collateral for the loan.

The stock exchange had threatened to remove GreenHunter from its NYSE Amex Equities listing if the company didn’t improve its financial condition, and the deadline is next week.

“The reason we waited so long was because we were trying to exhaust all options,” said Jonathan Hoopes, GreenHunter chief operating officer. He said he has been talking to companies that considered buying the refinery, but he couldn’t work out a deal.

The refinery faced a slew of problems. It was battered by Hurricane Ike and faced an import tariff on biofuels to Europe, Hoopes said, and the U.S. allowed a crucial biofuel tax credit to expire.

“Here we sat on a plant that could literally manufacture one-fifth of the nation’s biofuel needs,” but, he said, the company couldn’t afford to repair the refinery.

The article goes on to point out that many other biodiesel companies are in the same boat, losing market share due to the idling of refineries across the country while they wait for Congress to renew the credit.

Biodiesel, Government, Legislation

Holiday Travel Underscores Need for Electric Vehicles

John Davis

The long Thanksgiving Day holiday weekend is underscoring the need for more electric vehicles on the nation’s roads.

This article from Public News Service uses the example of North Carolina, where more than half a million families are traveling this weekend, spending about $12.4 million on gasoline. And that number will be even higher nationwide:

Electric cars have long been talked about, but are now poised to enter the mainstream with Nissan putting out their first all-electric car this fall — the Leaf. The ad campaign has environmental groups like Environment North Carolina excited over the potential impact on consumer opinion of alternative fuel sources for cars. Locky Stewart, field analyst for ENC explains why electric cars have such potential.

“I think it’s fantastic that that’s happening because in order for electric cars to have an impact, we need to really get them into consumers’ garages.”

A separate analysis by the Natural Resources Defense Council and the Union of Concerned Scientists found the 60 miles per gallon fuel efficiency standard for cars by 2025 would save North Carolina drivers $3.5 billion at the gas pump in 2030. Steward explains.

“Gas powered engines are really inefficient. Only 13 percent of the energy created by burning gas in an engine goes to moving that car forward, and that creates a lot of global warming pollution.”

The Chervrolet Volt, an extended range plug-in electric car, is also launching this year with several more electric cars planned by auto manufacturers by 2012.

The biggest issue is getting the infrastructure in place to have the charging stations available so these electric vehicles have their own fuel to run. Check out my Domestic Fuel podcast from August 25, 2010 for more on this topic. Also, see Joanna’s recent review of the book Jolt! for more on how electric vehicles are coming of age.

Electric Vehicles

Turning that Fried Turkey Grease into Biodiesel

John Davis

While the Thanksgiving Day feast might be behind you … except for the leftovers (I’m reminded of the Christmas Story lines where the narrator bemoans the loss of all the turkey-based leftovers when the neighbors’ hounds make off with said turkey – funny stuff!) … there might be one more leftover that you can’t quite put in the freezer for consumption later – the grease from frying the turkey. Frying turkey instead of roasting it has become a popular option (and thanks to my brother Bruce the method we chose to have our bird this year), but it leaves gallons of leftover oil that too many times ends up in the trash or sewer. Well, if you’re one of the many who have chosen the fried method, why not consider recycling that used grease into biodiesel?

The oil makes an excellent feedstock for the green fuel. If you’re a home biodiesel brewer, you already have all the equipment and know-how. But if you don’t make your own biodiesel, many communities across the country are offering free drop-off of your used grease. Check with your local officials. In addition, the National Biodiesel Board has listed several places that are accepting used cooking oil to turn into biodiesel on this website. Not only will you be able to do something green for your gas tank, you’ll be helping your community’s sewer and trash systems by keeping the grease out of those systems.

As for my brother, he used cheese cloth to clean up the oil after frying and plans to use it a few more times for some future fish fries has has planned. But when it’s run its course, I’ll make sure to let him know to do his part to help biodiesel and clean the environment.

Biodiesel, NBB

Brazil Ethanol Industry On Display At COP-16

Joanna Schroeder

In an effort to showcase decades of renewable energy use, the Brazilian Sugarcane Industry Association (UNICA) will be participating in events during the United Nations Climate Change Conference (COP-16) and the World Climate Summit (WCS) which are taking place in tandem in Cancun, Mexico from November 29-December 10.

According to UNICA, nearly 50 percent of all of Brazil’s energy comes from renewable sources. This is three times the global average and UNICA believes this gives Brazil a leading role in the search for solutions for global warming and climate change. To demonstrate their technologies, UNICA will conduce a seminar on alternatives to minimize emissions from transportation in emerging countries on December 6 at the Cacao Room in Hotel Moon. The organization will also at the Brazil Pavillion with support from the Brazilian Export and Investment Promotion Agency (Apex-Brasil, who will also be at the upcoming AG CONNECT Expo in Atlanta, GA on January 7-10, 2011).

Marcos Jank, UNICA’s President, points out that Brazilian greenhouse gas emissions measured in 2006 would have been 10 percent greater without the contributions from the sugar and ethanol industries. “Over the 35 years of large-scale use of biofuels in Brazil, more than 600 million tons of CO2 were kept from the atmosphere while the country saved US $240 billion that didn’t have to be spent on foreign oil,” said Jank.

He also notes that ethanol is moving beyond the fuel tanks of cars and buses and is also being tested as fuel to power generators, farm implements and machinery, as well as to fly planes. In addition, ethanol is used a replacement for fossil fuels in resins, fine chemicals and “green” plastics. The result, says Jank, is a significant reduction in greenhouse gas emissions.Read More

biofuels, Brazil, conferences, Environment, Ethanol, International

Book Review – Jolt!

Joanna Schroeder

The Age of Electric Cars is finally coming. Despite a stutter back in the late 90s when electric vehicle (EV) development came and went spurred by the passage and elimination of California zero emission policies, electric vehicles have come back. And if author James Billmaier is correct, in his book “JOLT! The Impending Dominance of the Electric Car,” they are not only here to stay, but they will completely transform driving as we know it.

While America has the means to be the leader in electric vehicle development and manufacturing, Billmaier notes that this lead is under threat, especially by China. He writes, “Today the United States faces a new threat to its national security. This time the threat is one of economic dominance, and it comes in the form of the electric car.”

He continues, “The EV industry us certain to become a technological juggernaut. Any society that masters it will enjoy an economic bonanza and enormous world power. For our own security, that society needs to be us.”

While the major hurdles to EV development have been or or close to being overcome, there are still challenges that need to be addressed. Ballmaier notes that these include lack of substantial private and federal investments to develop the industry and manufacture the cars and components in the states, as well as battery development and charging infrastructure. Cost is a major factor, and as an example, the Chevy Volt, that is launching in 2011, will cost more than $40K. In addition, the EVs range is still a concern among most drivers – true EVs are just getting to the 100 mile range.

However, Ballmaier explains that as EVs come of age and consumers purchase them in droves, battery costs will come down, range will go up and the cars will become even less expensive and more attractive.

In the beginning of the book, Ballmaier gives an overview of the industry, that is followed by interviews with some of the major players. The book concludes with his take on the future of EVs in America. While this was interesting, what I felt was missing was a real examination of some of the drawbacks of EVs including the precious metals needed for the batteries, battery replacement and recycling, the needs of the electrical grid and the move to the smart grid, and the true impacts of plugging into a dirty grid. In addition, I felt he missed an opportunity to talk more about hybrids (PHEV), electric vehicles with a gas backup that can run on E85. If his vision comes true, it won’t happen without a transmission that will require hybrids to travel long distances.

In the end, Ballmaier outlines his “JOLT! Program for America” which calls for 100 million plug-in cars on American roads by the end of the decade and asks for America to take charge.

book reviews, E85, Electric Vehicles, Electricity