UNICA Urges Congress to End Ethanol Tariff

Joanna Schroeder

“As the dust settled on a midterm election that significantly altered the political landscape, voters sent a clear message that cutting the deficit and ending wasteful government spending should be top priorities for Congress. Americans will be watching closely to see if lawmakers got the message. Eliminating ethanol subsidies and trade protection would be a good way to indicate that they did,” writes Joel Velasco, UNICA Chief Representative of North America in response the the Mid-Term Election results that took place across the U.S. on November 2, 2010.

Similar to two years ago when President Obama was elected, Americans asked for change. Only this time, its wasn’t Democrats they were asking to help make it. Republicans made a strong gain in this election with their promises of balancing the budget, cutting wasteful spending, fixing the economy, and creating jobs.

Along these same lines, UNICA has been heavily campaigning in recent months to end the ethanol tariff and open up the marketplace for ethanol. They argue that this will help save Americans money at the pump, create greater diversity, and provide access to cleaner alternatives like sugarcane ethanol.

Velasco continued in his blog post, “Democrats and Republicans have vowed to work together on this issue, hinting that the days of $6 billion per year in ethanol tax credits could be over when they expire on December 31. Senator Saxby Chambliss (R-GA), the top Republican on the Senate Agriculture Committee told Bloomberg News that “[t]here are folks who ideologically don’t want to see the tax credit,” noting that the election results were sure to strengthen that viewpoint.”

The U.S. corn ethanol industry may be getting the message on competition and the need to remove trade barriers on cleaner, more affordable energy,” writes Velasco. “During a conference call with reporters this morning, the president of the Renewable Fuels Association [Bob Dinneen] reiterated his support for setting the ethanol tax credit and import tariff at the same amount – a concept industry insiders refer to as “parity”.

Velasco concluded, “The next several weeks will be an important litmus test in determining whether or not Congress has truly heard the American people. Tough decisions will be need to be made to cut the deficit and restore fiscal responsibility and bipartisanship to Washington. Ethanol policy is a good place to start.”

Brazil, Ethanol, UNICA

More Cellulosic Ethanol Investment Needed

Cindy Zimmerman

The Energy Information Administration (EIA) has lowered its projection for cellulosic ethanol production in 2011, which means investment in next generation biofuels is more important than ever.

EIAIn a recent letter to Environmental Protection Agency (EPA) administrator Lisa Jackson, EIA administrator Richard Newell noted that they are now projecting cellulosic ethanol production will be just 3.94 million gallons next year, below the 5.3 million gallons projected in May as the target under the Renewable Fuels Standard in 2011. The estimate is based on EIA’s analysis of current projects and publicly available information regarding the potential for future projects. The agency anticipates only four companies will be capable of producing cellulosic ethanol next year.

Renewable Fuels Association President and CEO Bob Dinneen says encouraging investment in cellulosic ethanol is critical to meeting the goals of the RFS and should be important to the new Congress. “In that context, there will have to be a robust debate about how best to assure the continued growth and evolution of the ethanol industry, how to effectively attract capital to cellulosic ethanol technologies, how to commercialize other advanced biofuels like algae and butanol,” Dinneen said during a conference call with reporters this morning. “I constantly talk about not just the growth in the industry, but the evolution of the industry, and that means allowing the commercialization of new technologies to continue.”

According to Dinneen, an expanded cellulosic biofuels producer tax credit with a broader range of eligible advanced biofuels and the ability to allow developers to elect a refundable 30% investment tax credit would be a good way to help advanced biofuel commercialization.

biobutanol, Biodiesel, Cellulosic, Ethanol, Ethanol News, Government, RFA

What Election Means for Ethanol

Cindy Zimmerman

Renewable Fuels Association LogoRenewable Fuels Association President and CEO Bob Dinneen held a conference call with reporters this morning to discuss what yesterday’s historic election results may mean for ethanol policy, both for the rest of this year and in the next Congress.

“Washington will be a more Republican town in January,” Dinneen said. “Will that have a meaningful impact on the U.S. ethanol industry? I believe the answer to that is no.”

Dinneen stresses that ethanol is a bi-partisan issue and while a few strong ethanol supporters, including Rep. Earl Pomeroy of North Dakota and Rep. Stephanie Herseth-Sandlin of South Dakota, were defeated yesterday, there were many more that won. “And more importantly, for the most part, those that were defeated were replaced with equally strong advocates for value-added agriculture and ethanol,” he said.

The biggest issue facing the ethanol industry right now remains the expiration of the Volumetric Ethanol Excise Tax Credit (VEETC) at the end of the year. “Anyone would be foolish to predict what will happen with the incentive, it remains an uphill battle, but last night’s overwhelming message is that voters want Congress to do something about the economy and about jobs. Allowing the tax incentive to expire would risk jobs in a very important domestic energy center and across rural America,” said Dinneen.

Listen to Dinneen’s opening statement here. RFA's Bob Dinneen Comments on Election Results

Audio, Ethanol, Ethanol News, politics, RFA

INEOS Awards $100M Contract to Build Bioenergy Facility

Joanna Schroeder

INEOS Bio has awarded Tucker, Georgia-based AMEC a $100 million contract to build its BioEnergy Center in Indian River County, Fla. Once completed, the plant will be one of the first commercial waste-to-energy plants and the first one built using INEOS’s advanced BioEnergy Technology.

When the facility is completed, it will produce 8 million gallons of cellulosic ethanol per year and will also produce 6 megawatts of renewable electricity generated from various types of biomass including yard waste, municipal solid waste, wood, and vegetative waste.

“This is a key milestone in bringing INEOS Bio’s advanced Bioenergy technology to the US and global markets to help address the world’s waste management challenges,” said Peter Williams, CEO of INEOS Bio. “We offer a sustainable solution for energy independence which breaks the food-for-fuel chain and provides a plentiful supply of renewable bioenergy for new and developed markets.”

The BioEnergy Center, which will be located in Vero Beach, Fla. and the project is getting underway as the region faces a 16 percent unemployment rate. The construction phase of the project will provide 175 jobs in addition to 50 full-time jobs in the Treasure Coast community once the biofacility is complete. Just last month, the project received its major permits and approvals from the State of Florida and the U.S. Government.

“INEOS Bio’s partnership with AMEC brings us one step closer to opening the state-of-the-art BioEnergy Center in Indian River County, where it will bring both renewable energy and new green jobs,” said Mark Niederschulte, COO of INEOS Bio. “We’re confident that AMEC’s experience and expertise in the biofuel sector will help INEOS New Planet BioEnergy accomplish a successful and timely completion of the much anticipated BioEnergy Center.”

Cellulosic, Ethanol, Waste-to-Energy

ADM to Construct Biodiesel Plant in Brazil

Joanna Schroeder

Archer Daniels Midland Company (ADM) is increasing its biodiesel presence in Brazil with its announcement that it will be constructing a second biodiesel plant in Joaçaba, Santa Catarina. The new plant will be adjacent to the existing ADM soybean crushing and refining facilities and will more than double ADM’s biodiesel production in the country. Construction is set to begin in March 2011 and be completed sometime in the first half of 2012.

Once the biodiesel plant is completed, it will become the first in the state of Santa Catarina. The state has an ample supply of soybeans produced mainly by small family farms.

“We see exciting opportunities for ADM within the Brazilian biodiesel industry. With strong support from the government, biodiesel is poised to play an increasing role in meeting Brazil’s growing demand for renewable fuels,” said Patricia Woertz, chairman, chief executive officer and president of ADM. “By locating the plant adjacent to our Joaçaba soy operations, we’re able to leverage our origination, transportation and processing assets.”

ADM purchased the Joaçaba facility back in 1998 from Sadia. Currently, these operations process nearly 475,000 metric tons of soybeans and can refine approximately 73,000 metric tons of soybean oil annually. Once the biodiesel plant is operational, the facility is expected to increase the oil refinery capacity to nearly 110,000 metric tons per year.

“Brazil has been a global leader in creating a robust domestic renewable fuels industry that supports both social and environmental goals. And the recent implementation of 5 percent biodiesel blends in 2010 –– three years ahead of schedule–– demand for biodiesel in Brazil continues to grow,” said Domingo Lastra, president of ADM do Brasil Ltda. “With the Joaçaba biodiesel plant and our facility in Rondonópolis, ADM will play an important role in meeting that demand.”

Biodiesel, Brazil, Soybeans

Cobalt Partners With U.S. Navy On Biobutanol Project

Joanna Schroeder

Cobalt Technologies announced today that it has created a partnership with the U.S. Navy to develop performance jet and diesel fuels from biobutanol. The Cooperative Research and Development Agreement (CRADA) established a program that will convert n-butanol produced by Cobalt into biodiesel fuels using technology developed at the U.S. Naval Air Warfare Center Weapons Division (NAWCWD) in China Lake, Cali. Cobalt will have the option to obtain an exclusive license to commercialize process improvements developed under CRADA for the production of all military and consumer fuels.

“We are pleased to collaborate with the U.S. Navy to develop a renewable option for jet fuels,” said Rick Wilson, CEO of Cobalt Technologies. “It’s exciting to be part of this research, which will help relieve our reliance on foreign oil through the use of renewable fuels developed here in the United States. With our front end for producing renewable n-butanol and the NAWCWD’s technology for converting n-butanol into jet fuel, we can offer a complete process that directly addresses the military’s green fuels mandate.”

The U.S. military is the largest user of petroleum-based fuels in the country and the Navy is the largest single user. For several years, the military has been implementing its commitment to reduce its use of fossil-fuels. For the first time last year, several military jets flew using biodiesel blends, including algae, and a little more than a week ago, the U.S. Navy successfully tested an algae-fuel blend in a Command Boat.

”It is a privilege for NAWCWD chemists to work in partnership with Cobalt Technologies on this exciting technological venture,” said Dr. Michael D. Seltzer, head of NAWCWD’s Technology Transfer Program. “Anytime we can support the fleet and at the same time transfer important technology to the private sector, it is a win-win situation. As NAWCWD continues its leadership role within DoD in the research and development of alternative fuels, opportunities such as this are greatly valued.”

biobutanol, Biodiesel

Software Helps Biodiesel Producer Run Better, Cheaper

John Davis

A Washington state biodiesel maker has used some sophisticated computer software to help it streamline its process and complete a plant upgrade for a lot less money than what it previously would have cost.

General Biodiesel, which turns used cooking oil into biodiesel, has used Autodesk, Inc.’s Digital Prototyping and piping and instrumentation diagramming (P&ID) to upgrade its main production facility in Seattle, saving more than a million dollars on the project and completing it at a fifteenth of the previous cost:

As part of its plant improvements, General Biodiesel used Autodesk Inventor and AutoCAD P&ID software to design a sophisticated pre-treatment system that enables more effective filtering and cleansing of the cooking oil, removing contaminants before the oil is processed and refined. This pre-treatment produces exceptionally clean-burning biodiesel, the lowest carbon diesel alternative available on the market, offering 85 percent less carbon dioxide than conventional petroleum diesel.

The Autodesk Clean Tech Partner Program—which provides software for emerging clean tech companies in North America and Europe—enabled General Biodiesel to combine Digital Prototyping technology with AutoCAD-based P&ID design to efficiently implement this state-of-the-art biodiesel production process within its plant, and Autodesk partner IMAGINiT to provide the training to ensure successful deployment of the products.

General Biodiesel was also able to use the AutoCAD P&ID software to generate the bill of materials, making for accurate reports and saving money through greater efficiency.

Biodiesel

Ag Secretary Vilsack to Keynote Cellulosic Biofuels Summit

Joanna Schroeder

Agriculture Secretary Tom Vilsack will be the keynote speaker at the upcoming Cellulosic Biofuels Summit on November 16, 2010 in Washington DC. His topics will focus on several recent announcements from the USDA that established five regional Biomass Research Centers, the funding of five new biorefineries and the final rules for the Biomass Crop Assistance Program (BCAP), a $525 million program designed to help spur the growth of the cellulosic ethanol industry. Most recently, Vilsack was named as the top person in the Biofuels Digest “100 Top People in Bioenergy“.

Other summit speakers include Margo T. Oge, Director of the Office of Transportation and Air Quality, U.S. Environmental Protection Agency; Eric Darmstaedter, CEO, Clearfuels Technology; Harrison Dillon, Chief Technology Officer, Solazyme; Lee Edwards, President & CEO, Virent Energy Systems; Neil Renninger, Chief Technology Officer, Amyris Biotechologies; among others. In addition, representatives from all the major ethanol organizations will also be speaking.

The 5th annual summit is set for November 15-18 at the Almas Temple Club and Stoel Rives LLP has come on board as the platinum sponsor. Registration is still open and there is currently a 25 percent discount on the standard registration rate.

biofuels, Cellulosic, conferences

Ethanol Industry Files Against California LCFS

Cindy Zimmerman

The ethanol industry is proceeding with its lawsuit against the state of California over a rule that they claim would shut corn ethanol out of that state.

Renewable Fuels Association LogoLate yesterday, the Renewable Fuels Association and Growth Energy filed papers in U.S. District Court in California asking the federal court to declare that California’s low carbon fuels standard (LCFS) violates the U.S Constitution.

The groups filed their suit on December 24, 2009. On June 16, the federal court overruled a motion to dismiss the lawsuit, permitting the ethanol groups to proceed with their claims.

Growth EnergyThe two groups issued a joint statement on the filing. “With these papers filed in federal court, the ethanol industry is seeking a preliminary injunction, as well as summary judgment, to halt implementation of the regulation. Our argument is that the regulation as written is unconstitutional and injurious to the domestic ethanol industry, and we don’t believe a full trial is needed to decide that.”

A hearing on the motions is scheduled for February 23, 2011.

Ethanol, Ethanol News, Growth Energy, RFA

New Global Biofuels Alliance Announced

Joanna Schroeder

Five biodiesel companies have come together to launch an new biodiesel lobbying organization called the Global Biofuels Alliance, Inc. The effort was led by HERO BX, one of the country’s largest biodiesel producers. The first goal of the organization is to focus on reinstating the Biodiesel Blenders Tax Credit, which expired on December 31, 2009.

According to Mike Noble, co-founder of the alliance and President of HERO BX, the group is a nonprofit organization designed to support energy independence for the United States. Target members include representing small to midsize biofuels producers, traders, marketers, distributors, and other interested biofuels parties. The group was formed as an alternative to what Kevin Gorman, Chairman of the Board of Global Biofuels Alliance and President of Nextfuels, Inc., based in San Francisco, says is a “more narrowly focused National Biodiesel Board.”

“I think to be honest with you, we are trying to get an organization out there that represents the group and try to let the Senate and Congress know what needs to be done,” Gorman said in the Erie Times. “We need to create a viable industry where we can grow.”

The five founding members, each contributed $25,000 to get the organization off the ground which included hiring Brad Davis as the new Chief Executive, who was formerly the president of Lake Erie Biofuels. The group hopes that it grows to more than 100 companies. While the tax credit is of utmost concern to the group today, ultimately their goal is to help the country achieve energy independence.

Biodiesel, biofuels