Broin Recives Indiana Paul Dana Award

Cindy Zimmerman

The Indiana State Department of Agriculture has recognized POET President and CEO Jeff Broin with the 2010 Paul Dana Excellence in Bioenergy Leadership Award. POET is the nation’s largest ethanol production company with 27 plants producing more than 1.7 billion gallons of ethanol a year.

ISDA Director Joseph Kelsay presented the award during the Greater Indiana Clean Cities Awards Ceremony at the Governor’s Residence in Indianapolis. The Paul Dana Award recognizes those who have exemplified leadership and innovative vision in the bioenergy industry. Governor Daniels and Lt. Governor Becky Skillman established the award to honor the memory of Indy Racing League (IRL) driver Paul Dana, a strong supporter of Indiana’s growing biofuels industry who was killed in a racing accident in 2006. Broin is pictured here during last week’s announcement of ethanol’s new involvement in NASCAR.

Other 2010 Greater Indiana Clean Cities Award recipients include Thornton’s Quick Café and Market for outstanding achievement in the implementation and promotion of E85 retail locations; Doug Henderson of Co-Alliance for outstanding achievement in the sale and support of biodiesel blended fuel; and the City of Indianapolis for outstanding achievement in the deployment of hybrid vehicle technology.

During the awards presentation, Kelsay emphasized the importance of biofuels in Indiana. “Indiana is proud of the rapid success we have had in biofuels production. Indiana’s new ethanol and biodiesel plants have created direct jobs for Hoosier workers and many more in other supporting industries,” he said. Kelsay notes that in January 2005, Indiana had only one ethanol plant and currently the state has 11 completed ethanol plants and two more under construction. Indiana had no biodiesel plants in 2005 and there are now five biodiesel plants with a combined capacity of more than 100 million gallons of biodiesel. He also noted that the proliferation of E85 and biodiesel pumps in the state has grown dramatically in the past five years.

Biodiesel, Ethanol, Ethanol News, POET

Exelon Completes John Deere Renewables Purchase

Cindy Zimmerman

Exelon Corporation today announced that the previously announced acquisition of John Deere Renewables has been completed.

The acquisition of Deere’s wind energy business gives Exelon 36 wind projects in eight states that will now be called Exelon Wind, a division of Exelon Power. The projects amount to 735 operating megawatts of clean, renewable energy – enough to power 160,000 to 220,000 households. According to the company, the acquisition provides incremental earnings starting in 2012 and cash flows starting in 2013 and is a key part of Exelon 2020, the company’s business strategy to eliminate the equivalent of its 2001 carbon footprint by 2020. Exelon reports it is now halfway to its goal and remains the least carbon-intensive of the large U.S. electric utilities.

Electricity, Energy, John Deere, Wind

A New Look At Ethanol’s Net Energy

Joanna Schroeder

Earlier this week I had the opportunity to interview Merle Anderson for my Between the Lines blog (Three Pieces of Advice From the Father of Ethanol). For those who truly know, love and respect Merle, he is none other than the “Father of Ethanol”. It has been more than a year since I last caught up with him at the 2009 American Coalition of Ethanol’s (ACE) annual conference and it was high time to get his view on a few things and that I did.

One thing of special interest was his new way of looking at an old problem that seems to plague the industry, although usually only when someone is flinging mud, and that is the topic of net energy. Ethanol supporters agree that ethanol is a net energy winner. Ethanol opponents argue that ethanol is a net energy loser. Merle argues when you go the cornfield and play it out, ethanol wins the World Series.

Here is a letter that Merle has written on the topic and is being republished here on DomesticFuel with his permission and to honor his long-time contributions to his work in the industry. Merle – keep up the great work! (BTW – Merle Anderson is the Chairman Emeritus of ACE.)

Ever since area farmers started producing ethanol, opponents have been questioning the total energy balance of ethanol production.  And now more than ever, with gas prices pushing three or even in some parts of the country, four dollars a gallon, it is my understanding that we have widespread agreement that our country needs to reduce our imports of foreign oil. So let me agree that we need to produce and use more ethanol to replace that foreign oil.

Looking at the different types of energy to produce ethanol, there are basically three, natural gas, electricity and fossil fuel. We should understand that most of the energy used to produce ethanol comes from natural gas and electricity. By using natural gas and electricity, we are simply trading in commerce and is only good for the country. So then let’s look at how much fossil fuel are we investing in ethanol production and what are we getting for it. So let’s go to the cornfield and see how it plays out.Read More

ACE, Ethanol, Opinion

Is Natural Gas A Viable Partner In the Low-Carbon Future?

Joanna Schroeder

Is, and should, natural gas be a viable partner in the movement to a low-carbon future? This was the question asked and answered in a new report published by the Worldwatch Institute and authored by Worldwatch Sustainable Energy Fellow Saya Kitasei. “Powering the Low-Carbon Economy: The Once and Future Roles of Renewable Energy and Natural Gas,” concludes that natural gas and renewable energy such as wind and solar, could form a powerful partnership to move the world toward low carbon energies.

The report notes that “natural gas offers a cleaner alternative to coal” and sets up the stage for natural gas to play a starring role in the future of energy for its “flexibility, scalability, and cost-competitiveness to complement the variable distributed nature of wind and solar power generation.”

“If the world is to truly move away from coal as its primary means of electricity production, then natural gas must realize its full potential as a partner to the renewable energy industry,” said Kitasei. “Natural gas is undergoing a renaissance. Our research indicates that the environmental community should pay attention to the opportunities that this resource brings. When deployed as part of an integrated approach, renewable energy and natural gas can reduce coal dependence, deliver emissions reductions, and catalyze the transition to a low-carbon economy.”

According to the report, there are four key mechanisms that can enable the combination of renewable energy and natural gas to displace coal and provide needed reductions in power-sector emissions:

  • • First, air pollutants such as nitrogen oxide, sulfur dioxide, and mercury must be tightly regulated.
  • • Second, a cost must be attached to emitting carbon dioxide.
  • • Third, electricity system operators should allow wind and solar plants to balance their own output with on-site resources.
  • • Fourth, the markets on which system operators purchase electricity must be highly responsive, allowing them to react to fluctuations in electricity supply and demand as rapidly as possible.

The report is part of a larger look that the Worldwatch Institute is taking into the role of natural gas in the future global economy.

Electricity, Energy, Natural Gas, Research, Solar, Wind

Biodiesel Industry Struggles, But RINS Are Strong

John Davis

The biodiesel industry in the U.S. has been struggling lately, but the trading market for renewable identification numbers … the numbers the U.S. Environmental Protection Agency will require to prove compliance with the new Renewable Fuels Standard (RFS2) … is pretty strong.

Biodiesel Magazine reports that RIN prices seem to be filling the void the lapse of the federal $1 per gallon tax credit has created, fueled by the EPA’s recently released targets under RFS2:

In late November the agency released 2011 volume requirements, which consists of nested mandates. According to the release, 1.35 billion gallons of advanced biofuel must be consumed next year. Of that number 800 million gallons must be biomass-based diesel. Since biodiesel is currently the primary commercially-available advanced biofuel, the agency notes it will likely be used to meet the vast majority of the 1.35 billion advanced biofuel mandate.

According to Sam Gray, a renewable fuels trader with VICNRG LLC, 2010 biodiesel RINs hit an all-time high on Dec. 8, trading at 96 cents per RIN. Since each gallon of biodiesel that is produced generates 1.5 RINs, that equates to $1.44 per gallon, which more than offsets the lost value of the expired $1 per gallon biodiesel tax credit.

Although prices began slipping Dec. 9, Gray notes that they could easily remain in the 80 to 90 cent range for the remainder of the year. The good news for biodiesel producers is that the RIN system seems to be working as it was intended to by the EPA. “[RINs] are doing their jobs, they are doing exactly what EPA intended to do; to recognize the subsidy behind the gallon of renewable fuel to try to get favorable blending economics—or something resembling decent blending economics,” Gray said. “RINs are performing well within the mandate RFS2.” The biodiesel market in 2011 is expected to remain tight, which should ensure relatively high prices for 2011 biodiesel RINs as well.

Experts say RIN prices tend to go down in the spring but jump at the end of the year as obligated parties try to get into compliance before the deadline. Also, they say the RINs are functioning as they should, and the biodiesel market is continuing, despite the loss of the federal credit.

Biodiesel

Navy Hybrid Ship Recognized for Energy Award

John Davis

A good friend of mine from my Air Force days alerted me to a story about a U.S. Navy ship that was recently recognized for its hybrid technology during some recent energy awards.

Chris Hatch, who now does Congressional and Public Affairs for the Naval Surface Warfare Center Carderock Division in the Philadelphia, PA area, sent me this release explaining how the USS Makin Island (LHD-8) was recognized by Platts Global Energy Awards as a finalist for Engineering Project of the Year during its 12TH annual ceremony for using hybrid technology. The technology saved between $1.4 million and $2 million in fuel costs, compared to others in her class, during her maiden voyage. And over the expected life of the vessel, that could add up to more than a quarter billion dollars… of our tax dollars:

David Mako, a Naval Ship Systems Engineering Station (NAVSSES) senior electrical engineer, is honored by the prestigious nomination, and takes pride in his and other employees‘ contributions to designing the Amphibious Assault Ship with the Auxiliary Propulsion System (APS) responsible for these fuel savings.

“We were literally sitting in a room more than ten years ago in Pascagoula, Mississippi with shipbuilders and other stakeholders, sketching layouts and asking ‘what if?'” Mako said. “We had support from the ship‘s Program Manager to think outside the box on this one. He recognized early on that this would be a game changer. He was the real risk taker, and it really paid off.”

Though Mako half-jokingly bristles at the comparison, APS, also known as Hybrid Electric Drive (HED), is akin to technology used in automobiles. LHD-8 uses a gas turbine engine, and the APS‘ two 5,000hp electric motors for propulsion. APS takes electricity generated for shipboard systems like lighting and heat to turn the propeller for speeds of 12 knots and under, thus avoiding using its 35,000hp gas turbine, which is less efficient at slower speeds.

Chris goes on to explain that the slow speed savings is important as amphibious assault ships spend a great deal of time loitering at low speeds to support deployed troops.

This is just the latest effort by the U.S. Navy to get off the petroleum, especially foreign oil, addiction. In October, Joanna told you about a Navy Riverine Command Boat that runs on algae-based biofuel. The Navy also recently launched a new website to chronicle its environmental efforts, including the use of biofuels and renewable energy at greenfleet.dodlive.mil.

Government

Senate Deal Includes Ethanol and Biodiesel

Cindy Zimmerman

A renewal of the ethanol blenders tax credit, reinstatement of biodiesel incentives and help for wind and solar companies have all reportedly made it into the Senate compromise that extends both unemployment benefits and expiring tax cuts.

Renewable Fuels Association LogoAccording to the Renewable Fuels Association, the compromise legislation would extend the current Volumetric Ethanol Excise Tax Credit (VEETC) just through 2011 at the current rate of 45 cents per gallon. Additionally, the package with also extend the offsetting tariff on imported ethanol through 2011. Both policies are set to expire at year’s end.

“Ethanol producers greatly appreciate the determination of those members of Congress who worked tirelessly to continue America’s investment in ethanol production,” said Chuck Woodside, RFA Chairman and CEO of KAAPA Ethanol in Minden, Nebraska. “As a farmer-owned ethanol producer, extending tax incentives for ethanol use is a critical step allowing ethanol to compete with a heavily subsidized oil industry. We are committed to the process of responsible reform of ethanol tax policy, but such a process would have been infinitely more difficult in the absence of the existing tax policy.”

Listen to or download Woodside’s full statement here: Chuck Woodside

Growth EnergyGrowth Energy CEO Tom Buis says the action means more time for the industry. “An extension of the credit will give the industry certainty, and Congress the opportunity, to move forward with reforms that will remove the infrastructure barriers to the fuels market, such as our Fueling Freedom plan, next year,” Buis said in a statement.

The law will also reinstate the $1 a gallon biodiesel tax credit, retroactively for 2010 and through 2011, according to Sen. Charles Grassley (D-IA). “Our country spends more than $730 million a day on imported petroleum,” Grassley said in a statement. “Letting these items lapse would be a textbook case of penny-wise, pound-foolish legislating.” In addition, Bloomberg reports that a tax-grant program for wind and solar-energy companies will be extended for one year under the deal.

A first test vote on the package has been scheduled for Monday afternoon. Summary of the tax deal can be found here.

Audio, Biodiesel, Ethanol, Ethanol News, Government

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