Petrobras Signs $1.23 Billon Ethanol Supply Deal

Joanna Schroeder

Brazil’s largest state-owned energy company made another play today to become a world leader in biofuels. Petrobras announced a $1.23 billion deal with Tereos International’s Brazilian Branch, Acucar Guarani, to supply up to 2.2 billion litres of sugarcane ethanol to Petrobras’ fuel distribution subsidiary, BR, over the next four years.

Petrobras said in a statement today, “The contract ensures commitment in the supply to BR, access for Guarani to BR’s distribution system for part of its hydrated and anhydrous ethanol production, besides greater synergy between production, marketability and logistics.”

Petrobras has made several strategic moves in just the past few months including partnerships with Novozymes and KL Energy to develop second generation ethanol from sugarcane bagasse. In addition, the Company is converting several of its gas turbines to run on ethanol, and in other news an ethanol pipeline has received environmental permits.

Brazil is the second largest global producer of ethanol and is preparing to double its ethanol output over the next decade to meet the growing global demand for renewable fuels.

Brazil, Ethanol, International

Transportation Managers To Converge on New York

Joanna Schroeder

The Alternative Fuel Trade Alliance is hosting a series of training programs nationwide for alternative fuel fleet managers. The next stop on the tour is a free workshop on October 28, 2010 in Albany, New York’s Crown Hotel Plaza. The Propane Education & Research Council (PERC) is participating in the workshops along with several other organizations including the Renewable Fuels Association, National Biodiesel Board and the Clean Vehicle Education Foundation, who all came together to form the alliance.

The workshops, that are funded through a $1.6 million DOE grant, cover alternative fuel quality, infrastructure, available vehicles, safety, the latest technologies, and the environmental impact of propane, ethanol, biodiesel, and compressed natural gas. Each workshop ends with a ride-and-drive event that gives fleet managers a chance to get behind the wheel of vehicles that run on alternative fuels.

“Fleet managers eager to respond to customers’ growing interest in working with businesses that offer sustainable solutions will see the benefits of propane autogas and other alternative-fuel vehicles,” said Brian Feehan, vice president of PERC. “Choosing vehicles fueled by alternative fuels result in fewer harmful emissions and less reliance on imported oil.”

All workshops are hosted by a Clean Cities program, and the upcoming event in Albany is being hosted by Central New York Clean Cities. Upcoming workshops are scheduled for Arlington, Texas on November 16, 2010 followed by San Francisco, California on December 9, 2010.

To register for a workshop or view an archived webcast, visit www.altfuelsalliance.org.

Biodiesel, Ethanol, Natural Gas, Propane

Solar3D Goes Public

Joanna Schroeder

Santa Barbara, California-based Solar3D is now publicly traded on the Over the Counter Bulletin Board (OTCBB). The company has developed a 3-dimensional solar cell technology to maximize the conversion of sunlight into electricity that they believe is a game changer for the solar industry. If they are correct, their solar cell will be significantly more efficient, resulting in a lower cost per watt that will make solar power more affordable.

“Solar3D’s new listing on the OTCBB is a major milestone in the company’s business strategy,” said Jim Nelson, CEO, Solar3D. “Now, new investors will have a chance to participate in the rapidly growing solar market with a next generation 3-dimensional solar cell.”

The company’s technology was inspired by the light management techniques used in fiber optic devices. Solar3D’s solar cell technology utilizes a 3-dimensional design to trap sunlight inside micro-photovoltaic structures where photos bounce around until they are converted into electrons.

“Despite the dramatic growth of the solar industry, solar electricity accounts for less than 1% of global electricity generation,” explained Nelson. To truly deliver solar power to the world, solar cells must become more efficient and convert more sunlight into electricity at a lower cost. We believe Solar3D’s breakthrough 3-dimensional solar cell technology is a unique solution that will help tip the solar cost curve in the direction of massive scalability and global deployment.”

Nelson concluded, “Our approach combines micro-photovoltaics and innovative light management in a 3D solar cell to achieve the high efficiencies of crystalline silicon at the low cost per watt of thin film. Using 3D solar cells as the fundamental building blocks, highly efficient solar panels, arrays and solar power plants can be created.”

Electricity, Solar

Navy Leaders Discuss Role of Biofuels for “Green Fleet”

John Davis

Leaders of the U.S. Navy recently met to discuss ways to get those who sail the oceans blue into GREENER alternative fuels, including biodiesel.

Participants in the recent Navy Energy Forum in Washington, D.C. included Secretary of the Navy Ray Mabus as the group discussed his goal of making sure that half of the service’s total energy consumption comes from alternative sources by 2020:

“I am excited about what we’ve done with biofuels, because I think this has the potential to make a big, long-term dent in our fossil fuel usage,” said Mabus. “We conducted a supersonic flight of the Green Hornet in the spring on a 50-50 blend of camelina-based biofuel and JP-5. Biofuel testing has continued, and last week the first operational test of an algae-based biofuel was conducted on a Riverine Combat Boat (RCB-X) in Hampton Roads. In both cases, for the Green Hornet and the RCB-X, the engines didn’t know the difference.”

Chief of Naval Operations Adm. Gary Roughead spoke about how improving energy security ultimately supports the Navy’s overall goals.

“The Green Hornet and the path to a green fleet are not public relation gimmicks, but epitomize our new energy research, development, policy, and operations – that in and of themselves are the first stakes in the ground towards which we will work in the best interests of our Navy and nation,” said Roughead. “It’s more than simply how green can we be seen, it really is an operational issue for us.”

Biodiesel, biofuels

States Producing Domestic Fuel had Less Recession

John Davis

Parts of the U.S. that had a healthy energy producing sector, including the biofuels ethanol and biodiesel, took less of a hit during the recession or even avoided the economic downturn altogether.

A new report from Biofuels Digest details how areas that were able to produce enough energy to meet internal gasoline demands grew their economies at 2.5 times the national average. That allowed those states to have a jump in their gross domestic product (GDP) five times higher than those states that were less than 20 percent energy independent:

The report, which looks at both ethanol and crude oil production as a source for E10 gasoline, compared energy production and state GDP growth for 2007-08. Only coal-rich West Virginia sustained an annual GDP growth rate above 2 percent while providing less than 40 percent of its own gasoline through in-state production. North Dakota, which averaged 6 times as much fuel production as consumption, recorded growth rates over seven percent.

Some of this impact comes from the rising prices of fuel itself, but Alaska, which generates nearly half its GDP from fuel, experienced a GDP drop of 2 percent in 2007-08.

Who went into recession, who avoided?

As the Digest discovered in its investigation, the patchwork of states that were doing well and those that were in trouble – as the country began to fall into recession in 2008 – didn’t make sense, by traditional measures.

In the Midwest, Missouri badly trailed states like North and South Dakota, yet every state on the plains stayed out of recession while Michigan and Ohio tumbled in. In the Southeast, traditional growth engines Georgia and Florida went into early recessions, yet Mississippi and Arkansas were still growing. Why was Wyoming soaring while Idaho was flat?

From a statistical point of view, the key was the level of domestic energy production…

The articles goes on to say that communities that were able to keep their energy dollars at home, in part, through the development of biofuels, were also able to enrich their biotechnology, life sciences and bioenergy industries, which led to more educated people staying in those areas because there were good jobs to be had.

Biodiesel, biofuels, Ethanol, Ethanol News, News

Swine and Poultry Experts Discuss DDGS Use

Cindy Zimmerman

Swine and poultry producers are using the ethanol co-product distillers dried grains with solubles (DDGS) as feed for good reasons.

RFADr. Phillip Smith, a nutritionist with Tyson Foods, spoke at the recent Export Exchange event sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council about the value of DDGS in the poultry sector.

“It’s a very good ingredient for us,” said Dr. Smith. “We’ve used it successfully and the reason we would use a co-product like that is to save money in the diet. It gives us a good cost value, nutrient value, it flows and handles and the birds perform well on it.” He says it can be use as much as 15 percent of the diet for birds, or even more in breeder diets.

He recommended to international buyers who were at the Export Exchange that they try DDGS and work with it. “If it saves money, there’s that incentive, that risk is worth taking,” he said.

Listen to or download an interview with Dr. Phillip Smith here: Phillip Smith Interview

export exchangeSouth Dakota State University Extension swine specialist Dr. Robert Thaler talked about the use of DDGS in hogs and how it helps supply phosphorus in the diet. “Phosphorus supplementation to the diet is very expensive,” he said. “The cool thing is that the phosphorus in DDGS is highly available. So, if you’re replacing dical or monocal with phosphorus coming from DDGS, you’re going to have less phosphorus in the manure, it will probably be cheaper and plus, you’re going to have less environmental problems.”

Dr. Thaler says exporters want quality assurances when it comes to DDGS and they are also wondering how high they can go including DDGS in the diet. “A lot of them are at 5-10 percent inclusion rate in swine diets. Here in the United States, on the growth/finish side, we’re probably 20-30,” he explained. “We just have to get them to realize that there’s nothing magical we’re doing to make that 20-30 percent work.”

Listen to Dr. Thaler’s interview here: Robert Thaler Interview

Audio, Distillers Grains, Ethanol, Ethanol News, Exports, livestock feed, RFA, USGC

Bioethanol Pilot Plant Opens in Norway

Cindy Zimmerman

Norwegian biofuels company Weyland has opened a pilot plant for second generation bioethanol in Bergen, Norway.

According to a company release, the plant was formally opened today by State Secretary Per Rune Henriksen of the Norwegian Ministry of Petroleum and Energy during an opening ceremony. The pilot plant has the capacity to produce 200,000 litres (about 53,000 gallons) of bioethanol per year. Petter Bartz—Johannessen, Weyland’s CEO, considers the opening an important milestone for the company: “Weyland aims to become an international supplier of technology for production of bioethanol from cellulosic feedstocks. The pilot plant will allow us to demonstrate the technology’s suitability for full-scale production.” The Weyland process is based on concentrated acid hydrolysis that officials say results in a high ethanol yield and can utilize a variety of different feedstocks, such as wood and agricultural waste.

“Weyland represents an interesting and robust next generation biofuel technology that can use several types of feedstock. Together we are passing a historic milestone towards industrialization of this low carbon renewable fuel production. Today we are very excited with the progress and are looking forward to see the next achievements,” said Guntis Aboltins-Abolins, Head of the Future Fuel unit at Statoil, which contributed substantially to the funding of the pilot plant.

The company hopes that the pilot plant will pave the way for a larger production plant in Norway, with an annual production capacity in the order of 25-30 million litres.

The photo, supplied by the company, pictures left to right: CEO Petter Bartz-Johannessen, Weyland BioEthanol, State secretary Per Rune Henriksen, Norway Department of Oil and Energy and Leading business developer Guntis Aboltins-Abolins, Statoil New Energy at the opening of Weylands pilot plant.

biofuels, Ethanol, International

Assessing Real Impact of E15 During Ethanol Industry Summit

Joanna Schroeder

Now that the EPA has given limited approval for consumers to fill up with E15, what is the next step for gasoline marketers, retailers and ethanol producers? You can get all the details at the upcoming Ethanol Industry Summit being held in Houston, Texas on December 7-8, 2010. The Summit is hosted by Informa Economics and F.O. Licht.

The 4th Annual Ethanol Industry Summit will bring together key industry leaders to give you insight into what needs to be done to continue to drive the industry forward, reduce uncertainty and increase demand and support for biofuels. Summit speakers include:

1. Todd Becker, President & CEO, Green Plains Renewable Energy – share the strategic vision of this major ethanol producer.

2. Sue Ellerbusch, President, BP Biofuels, discusses opportunities for traders, producers & biotechnology companies.

3. Fabrizio Zichichi, Managing Director, Commodities, Morgan Stanley – discover the main drivers for ethanol financing.

4. Tom Buis, CEO, Growth Energy & Geoff Cooper, VP, RFA talk mandates, logistics, blend wall & supply/demand.

5. Candace Wheeler, Technical Fellow, General Motors R&D assesses the role of biofuels in sustainable mobility & Obama’s CO2 reduction targets.

Also during the conference, attendees will learn about the impacts of the Low Carbon Fuel Standard (LCFS), and the Renewable Fuel Standard (RFS2) will have on the industry; hear about investment and financing opportunities; learn how to optimize your production process to improve efficiency and meet market demands; learn how to manage risks in feedstock markets, and more.

Register before October 29 to receive Summit discounts. Click here to learn more about the conference and for online registration.

biofuels, blends, conferences, Ethanol

Propel Fuel Sales Double During Alt Fuels Promo

Joanna Schroeder

Propel Fuels saw their fuel savings double during their multiple alternative fuel promotions held as part of their celebration of the National Alternative Fuel Vehicle Odyssey Day. The effectiveness of these types of promotions in increasing consumer awareness about alternative fuels such as ethanol and biodiesel is not new to Propel, they often have them in conjunction with new station openings. Speaking of new station openings, they could have up to 200 over the next two years as part of their initiative to bring ethanol and biodiesel blends to the West Coast.

“Fuel sales more than doubled at participating stations due to strong event turnout, and the program educated several hundred non-AFV owners in addition to the volume spike. Some sites reported volumes up as high as 300 percent,” Chris LaPlante, Propel’s Director of Marketing told DomesticFuel.

The next two stations Propel will be adding to their growing list are in San Jose and Sacramento, areas that are home to thousands of flex-fuel vehicle owners. And at the pace they are opening new alternative fuel stations, California will soon be a leading state for consumers to purchase these fuels – an important feat since many consumers believe alternative fuels are Midwest Fuels.

LaPlante concluded, “Propel continues to expand access to renewable fuels as it builds out its network of fuel stations state-wide. Along with its current network of stations in the Bay Area and Sacramento, Propel has begun development of station locations in all major markets across California, with 200 stations expected over the next two years. Additional Bay Area Propel sites are planned for North San Jose, Palo Alto, Redwood City, Livermore, and Concord in the coming months.”

Biodiesel, E85, Education, Ethanol

Vilsack to Visit Georgia Ethanol Plant

Cindy Zimmerman

First United Ethanol of Georgia, better known as FUEL, will host U.S. Secretary of Agriculture Tom Vilsack on Monday, October 25th. Secretary Vilsack will be accompanied by U.S. Representative Sanford Bishop and U.S. Representative Jim Marshall.

“We are very excited about this opportunity to speak face to face with one of the most important policy makers in America. We look forward to discussing key issues that we as a company and the entire industry are facing, “ said Murray Campbell, CEO of FUEL.

Secretary Vilsack’s visit to the 100 million gallon per year ethanol plant located in Southwest Georgia coincides with his announcement on biofuels initiatives yesterday at the National Press Club in Washington, D.C. He discussed the need for a strong, vibrant rural economy, and biofuels role in making that a reality. “We can do better. We have to do better. Rural America is where we will do better,” said Vilsack.

“Secretary Vilsack’s visit to First United Ethanol in Georgia signifies that the administration understands that ethanol production is about more than just square states in the corn belt,” said Matt Hartwig with the Renewable Fuels Association. “It’s about economic opportunity and environmental stewardship in all parts of the country, including the southeast.”

First United Ethanol, LLC began production in October 2008. It is owned by over 860 investors with the majority living in rural Georgia and Florida.

Ethanol, Ethanol News, RFA, USDA