Ethanol Industry Pleased with EPA Decision

Cindy Zimmerman

Ethanol industry groups are pleased that the Environmental Protection Agency has decided that blends of 15% ethanol are safe for use in all cars and pickups built in 2001 and later.

Growth EnergyGrowth Energy filed the original waiver back in 2009 to raise the regulatory cap on the ethanol blend from 10 percent to 15 percent to create more jobs and increase the nation’s energy security.

“This is a bold move forward, changing America’s energy future for the better,” said Tom Buis, CEO of Growth Energy. “Increased use of ethanol will strengthen our energy security, create U.S. jobs, and improve the environment by displacing conventional gasoline with a low-carbon fuel.” According to the organization, which is holding a press conference on the announcement, a full move to E15 creates a bigger market for American ethanol that could help create as many as 136,000 new jobs in the United States and eliminate as much as 8 million metric tons of GHG emissions from the air in a year — the equivalent of taking 1.35 million vehicles off the road.

Renewable Fuels Association Logo“Today’s decision greenlights the use of E15 for nearly two out of every three cars on the road today and furthers proves ethanol is a safe, effective fuel choice for American drivers,” said Renewable Fuels Association President Bob Dinneen. “EPA continues to move in the right direction with respect to increasing ethanol blends, but challenges still remain. The RFA continues to urge EPA to extend the waiver for E15 use to all cars and pickups.”

Dinneen notes that today’s announcement will accelerate the timeframe in which most vehicles on American roads will be covered by the waiver. “However, given that not every vehicle on the road is being approved, labeling issues and misfueling concerns by gas station owners must still be addressed. Additionally, the RFA worked with gas station owners and gasoline marketers to get legislation introduced in the last Congress to address misfueling concerns.”

ACEBrian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE), says the move is another important step in making more renewable fuel choices available to consumers. “ACE continues to be confident that the scientific evidence proves E15 is safe and reliable for all cars, and is disappointed that EPA continues to insist of this confusing model-year division, especially when models earlier than 2000 are being excluded without scientific evidence of any issues with using E15 in those vehicles,” said Jennings. “We are pleased with this positive step, but remain concerned about the unnecessary confusion that will unfortunately be caused by EPA’s piecemeal, partial-waiver approach.”

ACE, Ethanol, Ethanol News, Growth Energy, RFA

EPA Approves E15 for Vehicles 2001 and Up

Cindy Zimmerman

The Environmental Protection Agency has officially announced approval of 15% ethanol blended fuel for vehicles as old as model year 2001.

The U.S. Environmental Protection Agency (EPA) today waived a limitation on selling gasoline that contains more than 10 percent ethanol for model year (MY) 2001 through 2006 passenger vehicles, including cars, SUVs, and light pickup trucks. The waiver applies to fuel that contains up to 15 percent ethanol – known as E15. EPA Administrator Lisa P. Jackson made the decision after a review of the Department of Energy’s thorough testing and other available data on E15’s effect on emissions from MY 2001 through 2006 cars and light trucks.

“Recently completed testing and data analysis show that E15 does not harm emissions control equipment in newer cars and light trucks,” said EPA Administrator Lisa P. Jackson. “Wherever sound science and the law support steps to allow more home-grown fuels in America’s vehicles, this administration takes those steps.”

On October 13, 2010, EPA approved a waiver allowing the use of E15 for MY 2007 and newer cars and light trucks. At that time, EPA denied a request to allow the use of E15 for MY 2000 and older vehicles and postponed its decision on the use of E15 in MY 2001 to 2006 cars and light trucks until DOE completed additional testing for those model years.

The Agency also announced that no waiver is being granted this year for E15 use in any motorcycles, heavy-duty vehicles, or non-road engines because current testing data does not support such a waiver.

These waivers represent one of a number of actions that are needed from federal, state and industry to commercialize E15 gasoline blends. Also, EPA is developing requirements to ensure that E15 is properly labeled at the gas pump. The label will be designed to prevent refueling into vehicles, engines, and equipment not currently approved for the higher ethanol blend.Read More

Ethanol, Ethanol News, Government

EPA Decision on E15 Expected Soon

Cindy Zimmerman

The Environmental Protection Agency is expected to announce this morning the approval of using up to 15 percent ethanol blended fuel in vehicles as old as model year 2001.

In October, EPA approved the use of E15 for use in vehicles built in the 2007 model year and newer, but put off the decision on older vehicles until further testing could be done by the Department of Energy.

Ethanol organizations in support of E15 and other groups opposed to using higher blends of ethanol are standing by this morning waiting for EPA to release the official decision to provide reaction.

Ethanol, Ethanol News

Michigan Ethanol Delegation Hits the Hill

Cindy Zimmerman

A delegation of representing Michigan ethanol producers hit Capitol Hill on Thursday for a series of meetings with members of Congress and their staff. The fly-in, organized by Growth Energy, was designed to educate lawmakers about the benefits of ethanol.

The Michigan delegation includes David Gloer and Don Morse with POET Biorefining-Caro, Gary Lazarski of Carbon Green BioEnergy and Steve Bleyl from Green Plains Renewable. They are pictured here in the office of Rep. Dan Benishek (center) along with Growth Energy representatives Jim Nussle and Tom Buis. (Thanks to Growth Energy for providing the photo)

“This is an important opportunity for Michigan ethanol supporters to speak directly with the policy makers in Washington about the benefits of domestically-produced ethanol,” said Gloer, who is General Manager of POET Biorefining Caro. “If we want to reduce our dependence on foreign oil, create jobs here in the U.S. and strengthen our national security, we must invest in America’s fuel: ethanol.”

During the group’s two day visit, they will meet personally with four of their state representatives as well as staff members of two others and Sen. Debbie Stabenow (D-Mich.) The meetings will focus on how expanding the production of ethanol through infrastructure development could help strengthen the Michigan economy and environment.

Ethanol, Government, Growth Energy

ACE Calls on White House, EPA to Address Ethanol Regulations

Joanna Schroeder

On behalf of its members, the American Coalition for Ethanol (ACE) submitted a letter to President Obama today in regards to his recent signing of the Executive Order “Improving Regulation and Regulatory Review.” This document instructs federal government agencies to develop plans to ensure that our regulatory systems protect the public’s health, welfare, safety, and environment while at the same time promoting economic growth, innovation, competitiveness, and job creation. The letter also applauds the president’s efforts to continue to create jobs while he encourages politicians to remove antiquated and overlapping rules that are stifling job growth.

The letter continues by asking the White House and the EPA to address three key regulatory issues related to biofuels and U.S. economic and environmental security. The letter first addresses two rules concerning ethanol under EPA jurisdiction that send mixed messages: RFS2 which requires 36 billion gallons of renewable fuel use by 2022 and the EPA only allowing all conventional vehicles to use E10. ACE notes that “clearly these regulations are incompatible.”

ACE also points out that EPA’s current action on E15 will not fulfill the RFS2 requirement. The letter states, “While EPA finally authorized some newer model-year cars to use E15, the agency has created unnecessary confusion by declaring, without scientific evidence, that older cars should not use E15. As a result, we expect very little E15 use until such time EPA authorizes a more complete approval.”

ACE is also urging the EPA to enforce a rule that appears to be unenforced, or at best partially-enforced, today. In 1990, Congress amended the Clean Air Act to require EPA to protect human health by significantly reducing the use of carcinogenic aromatics by refiners to increase octane in gasoline. Aromatics are produced during the refining of crude oil into gasoline and when these aromatics, such as benzene, toluene, and xylene, are combusted by motor vehicles, they result in a major source of toxic pollution in U.S. urban air sheds. ACE writes that to their knowledge, the agency has failed to curb the use of toluene and xylene aromatics by refiners.

The letter concludes, “Resolving these three regulatory matters will meet your objectives for rooting out conflicting regulations and balance the need to grow the economy and protect the environment. Moreover, taking these steps will enable the American ethanol industry to help save and create U.S. jobs and provide motorists with fuel choices that are more affordable and cleaner than fossil fuel.”

You can read ACE’s letter in its entirety here.

ACE, Ethanol, Ethanol News

Ethanol Economic Impacts Issue Brief Released

Joanna Schroeder

The Ethanol Across America education campaign has released the Economic Impacts of Ethanol Production Issue Brief this week. The purpose of the report is to illustrate the significant benefits of ethanol production to the U.S. economy. The latest Brief in the series examines the impacts of several fuel ethanol facilities in the states including South Dakota, Iowa, Nebraska, and Indiana and shows how they are positively helping the economy.

“We have long been aware of the benefits of ethanol production at the local level, and the case studies we provide clearly quantify that. This brief also makes it clear that jobs resulting from the ethanol industry, both direct and indirect, fuel the economy at all levels,” said Douglas A. Durante, the director of the Ethanol Across America Campaign.

According to the Brief, and citing a third party study, the ethanol industry added $2.9 billion of gross output to the U.S. economy in just 2009. It also highlights the reduction in Federal outlays for farm programs as well as the substantial energy costs savings. The Brief states that increasing the motor fuel pool with ethanol lowers the cost of gasoline to consumers and the potential for reducing oil imports could lower the U.S. oil bill by more than $60 billion dollars per year.

The report also calculates that full implementation of the Renewable Fuel Standard (RFS2), which will largely be met with ethanol, could increase net farm receipts across the country by $13 billion per year. One case study illustrates that a 50 million gallon per year biomass ethanol plant in the Northeast would generate $170 – $200 million in income and create between 4,000 and 6,000 jobs during construction. Ethanol production from wood, agriculture residues, waste paper, and other cellulosic sources is being looked at in every state.

“Displacing imported oil, reducing health costs, creating jobs, reducing federal outlays– the list goes on,” said Durante. “With Congress and the Administration calling for a renewed commitment to producing domestic, clean energy, biofuels like ethanol make more sense than ever. With so many new members of Congress eager to look at these issues, we wanted to make this information available to them as they begin this new session.”

Education, Ethanol, Ethanol News, Research

Adminstration Offers Boost for Advanced Biofuels

Cindy Zimmerman

In addition to loan guarantees for biorefineries in the southeast, the U.S. Departments of Agriculture (USDA) and Energy (DOE) announced other steps today designed to give the advanced biofuels industry a much-needed boost.

“With the renewable fuels standard goal, there’s going to be a need for additional biofuels and it must be met in large part by advanced biofuels,” said Agriculture Secretary Tom Vilsack when making the announcement today.

Over 120 biofuel producers in 33 states will be receiving payments from USDA as incentives to produce advanced biofuels. Under the Farm Bill, the Bioenergy Program for Advanced Biofuels authorizes payments to eligible producers to expand production and use of advanced biofuels.

Payments, which range from less than $500 to over $1 million, are based on the amount of advanced biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat. The producers receiving payments include a significant number of biodiesel plants, since biodiesel is considered an advanced biofuel.

Meanwhile, the DOE is offering a $241 million loan guarantee Diamond Green Diesel – a proposed joint venture between Valero Energy Corporation and Darling International Inc. The loan guarantee will support the construction of a 137-million gallon per year renewable diesel facility in Norco, Louisiana, about 20 miles west of New Orleans. Valero Energy Corporation plans to direct the design, construction and operation of the project and market all of its output, while Darling International Inc. will supply feedstock to the project.

Biodiesel, biofuels, Cellulosic, Ethanol, Ethanol News, Government, USDA

USDA Announces Funding for Biorefinery Projects

Cindy Zimmerman

Agriculture Secretary Tom Vilsack today announced $405 million in guarantee loans for three biorefinery projects in the southeast under the Biorefinery Assistance Program. The three projects are located in Alabama, Mississippi, and Florida.

“We believe it’s critical and crucial to develop a biofuel industry powered by feedstocks produced in every corner of the country,” said Vilsack during a conference call to announce the loan guarantees.

In rural western Alabama, Coskata, Inc. has received a letter of intent for a $250 million loan guarantee to construct and operate a cellulosic ethanol biorefinery facility. This 55-million gallon-per-year renewable biofuel project will use woody biomass to produce ethanol.

In Pontotoc, Miss., Enerkem Corporation has been selected to receive an $80 million loan guarantee to build and operate a biorefinery that will be capable of producing 10 million gallons of advanced biofuel (cellulosic ethanol) per year by refining some 100,000 metric tons of dried and post-sorted municipal solid waste through a thermo-chemical cellulosic process.

In Vero Beach, Fla., the INEOS New Planet BioEnergy, LLC. has been selected to receive a $75 million loan guarantee to construct and operate a biorefinery capable of producing 8 million gallons-per-year of cellulosic ethanol and gross electricity production capacity of 6 MW. The feedstock for the process will include primarily vegetative waste (citrus and agricultural wastes), yard wastes, wood waste, and municipal solid waste.

When asked about Range Fuels in Georgia, which has received USDA loan guarantees but is having to shut down due to lack of additional investment, Vilsack said he is hopeful that the company will work through the technology issues that are causing investment concerns. “Our efforts along with the energy department’s efforts are really designed to prime the pump,” Vilsack said. “The fact that we’re making these announcements today in a variety of states across the country indicates our belief that this industry is here to stay.”

Vilsack also announced investments to study renewable energy feasibility in rural communities and payments to eligible producers to expand production of advanced biofuels.

Listen to or download Vilsack’s press conference here: Tom Vilsack on Biofuels Projects

Audio, Biodiesel, biofuels, Cellulosic, Ethanol, Ethanol News, USDA

Brazil Sugarcane Harvest Update

Joanna Schroeder

The Brazilian sugarcane harvest is in full swing and sugarcane crushing in the South-Central region totaled 2.44 million tons in the second half of December 2010, a 76.39 percent drop from the same period in 2009. This raises the total since the beginning of the 2010/2011 harvest to 555.00 million tons. In early January, only 21 mills were operating in the region and between now and the end of the official harvest on March 31st, numbers are only expected to change slightly.

In the second half of December, sugar production reached 67.48 thousand tons, adding to the 33.46 million tons produced from the beginning of the harvest to December 31, 2010. That total is 18.22 percent more than the amount produced during the same period of 2009, and 16.82 percent more than the final tally for the entire 2009/2010 harvest.

The country’s ethanol production reached 142.7 million liters in the second half of December. Of this total, 53.24 million liters were anhydrous and 89.23 million were hydrous ethanol. Since the harvest began through the end of December 2010, total ethanol production was 25.27 billion liters, which was an increase up 10.34 percent compared to the same period in 2009. Of this volume, 17.87 billion liters were hydrous ethanol – a 6.25 percent increase from last year, and 7.41 billion liters were anhydrous ethanol, an increase of 21.64 percent from last year.

When you take into account the current harvest is near completion, and compare overall production at the end of December with final numbers for last year’s harvest, there were increases of 2.41 percent in total cane crushing, 16.82 percent in sugar production and 6.71 percent in ethanol production. However, when you only factor ethanol and sugar into the equation, the increase is 11.10 percent.

Sales of ethanol by mills in the South-Central region totaled 2.22 billion liters in December, a 2.64 percent increase compared to the previous month. Of that, 108.33 million liters were exported and 2.11 billion liters went to the domestic market. On the domestic front, 1.50 billion liters of hydrous ethanol were sold in December, a 2.44 percent increase compared to December of 2009. Anhydrous ethanol sales totaled 608.66 million liters against 524.39 million liters in 2009, an increase of 16.07 percent.

During a meeting held on Wednesday Jan.12 with members of the various government organizations, it was determined that there would be continuous monitoring of the ethanol market during the inter-harvest period, with regular meetings between the government and market agents.

“Given the latest figures, it became evident that the current productive scenario offers total peace of mind as far as supplies of ethanol for the domestic market. Mills in South-Central Brazil should produce about two billion litters more ethanol in the current harvest year and, so far, exports are down by more than a billion liters compared to the previous harvest,” said UNICA’s Rodrigues. The numbers show the amount of ethanol available for domestic needs should increase by approximately three billion liters, he added.

Brazil, Ethanol, UNICA

Part 1: An Overview of Waste-to-Energy

Joanna Schroeder

Earlier this week, I announced that I was kicking off a series on waste-to-energy and many people have already expressed comments and feedback on the subject. It is probably no coincidence that the hot button was the term incineration, aka combustion or burn. No one can see this term and not think pollution. While incinerators are still in use today, and will be the focus of Part 1 of this series, there are many new cutting edge waste-to-energy technologies that don’t use incineration and as the series progresses, we’ll be discussing these technologies.

One of the first people I spoke with was Ted Michaels with the Energy Recovery Council based in Washington DC. The first question I asked him was how has the technology developed from the 1970s until now? Michaels began by explaining that the commercial waste-to-energy industry has existed since 1975 and today there are 86 waste-to-energy (WTE) facilities in 24 states that turn trash into energy through combustion.

The biggest differentiation of WTE facilities today, versus the WTE facilities of yesteryear, according to Michaels, are their ability to capture the energy and their utilization of emission control equipment. “America’s waste-to-energy facilities meet some of the most stringent environmental standards in the world and employ the most advanced emissions control equipment available,” said Michaels. “In fact, the US Environmental Protection Agency concluded in 2003 that America’s waste-to-energy plants have demonstrated “dramatic decreases” in air emissions, and produce electricity “with less environmental impact than almost any other source of electricity.”

According to Michaels, WTE achieves the reduction of greenhouse gas emissions (GHGs) through three separate mechanisms: 1) by generating electrical power or steam, waste-to-energy avoids carbon dioxide (CO2) emissions from fossil fuel based electrical generation; 2) the waste-to-energy combustion process effectively avoids all potential methane emissions from landfills thereby avoiding any potential release of methane in the future; and 3) the recovery of ferrous and nonferrous metals from MSW by waste-to-energy is more energy efficient than production from raw materials.

Michaels explains that these three mechanisms provide a true accounting of the greenhouse gas emission reduction potential of waste-to-energy. “A lifecycle analysis, such as the EPA Municipal Solid Waste Decision Support Tool, is the most accurate method for understanding and quantifying the complete accounting of any MSW management option,” explained Michaels.Read More

bioenergy, Electricity, Energy, Waste-to-Energy