Ethanol Production Drops Slightly

Joanna Schroeder

According to the Renewable Fuels Association, daily ethanol production for the week ending 9/24/2010 averaged 825,000 barrels per day (b/d) or 34.65 million gallon per day. These production numbers are slightly down from the previous week when the ethanol industry produced an average of 850,000 b/d and the four week average of 856,000 b/d.

In addition, stocks of ethanol also fell with current stocks standing at 17.2 million barrels.

While ethanol production was down, gasoline demand was up averaging just over 394 million gallons per day. Average daily ethanol production stood at 8.79 percent when expressed as a percentage of average daily gasoline demand.

The amount of corn used to produce last week’s ethanol was an average of 12.509 million bushels per day and 93,107 metric tons of livestock feed per day. Distillers grains (DDGs) represented 82,210 metric tons of the total feed production. In addition, ethanol producers also supplied 3.57 million pounds of corn oil.

Ethanol, Ethanol News, RFA

DOE Reconfirms Support for Renewable Fuels

Joanna Schroeder

On Wednesday, the Department of Energy sent a letter to the State Energy Program and EECBG program grantees reiterating their support for the deployment of renewable fuels through funds awarded as part of the 2009 Recovery Act. There has been widespread frustration throughout the ethanol industry on the length of time it has taken for these funds to be dispersed to those companies that have been awarded monies.

In the letter, DOE Deputy Assistant Secretary for Energy Efficiency Kathleen Hogan wrote, “With over 7 million flex-fuel vehicles already on the road and millions more being produced every year, the market for renewable fuels will continue to grow. Therefore, there is a need to increase the number of compatible fueling dispensers in order to meet our nation’s energy goals, particularly in renewable fuel producing regions of the nation in the near term.”

Hogan continued, “With this is mind, DOE is encouraging grantees to consider allocating or increasing funding to renewable fuel infrastructure programs in those regions of the country most conducive to and in need of increased infrastructure investments.”

The DOE has prepared a program that it feels properly identifies industry characteristics and partners that will be critical to the successful national deployment of renewable fuels infrastructure.

Growth Energy CEO Tom Buis responded to DOE’s letter by saying, “We commend the Department of Energy for their efforts to help address some of the infrastructure barriers that prevent our industry from reducing our dependence on foreign oil, creating jobs here in America that can’t be outsourced, and improving our environment. If we are truly going to realize our nation’s energy independence goals, we need to ensure that our entire vehicle fleet and fuel infrastructure are ready to use expanded U.S. ethanol production. Each additional flex fuel vehicle and blender pump gives consumers the option of filling up with clean, renewable ethanol to create a more secure energy future for this country.”

Biodiesel, biofuels, Ethanol

New Regs Needed for Cellulosic Fuels to See Fruition

Joanna Schroeder

According to a new study published today in the October issue of BioScience, “Far-reaching Deleterious Impacts of Regulations on Research and Environmental Studies of Recombinant DNA-modified Perennial Biofuel Crops in the United States,” researchers argue that the current regulatory system will need a monumental overhaul in order for cellulosic bioenergy to reach its true potential. The authors write that cellulosic biofuels are hampered by a “deep and thorny regulatory thicket” that has made it near impossible to use advanced gene modification methods to advance cellulosic biofuels production.

“It’s extraordinary that gene modification technology, which has been adapted more rapidly than any other technology in the history of agriculture, and had some profound environmental and economic benefits, has been regulated virtually out of existence for perennial cellulosic biofuels crops,” said Steve Strauss, a distinguished professor of forest biotechnology at Oregon State University, and lead author of the paper.

In the paper, the authors note that exotic plant species pose a serious risk of spread and ecosystem impacts, yet face significantly less stringent regulation or obstacles than genetically engineered crops, which are carefully designed to solve problems, not cause them. As a result, the authors write, many research projects have had to stay away from gene modification methods and this has slowed down the entry of cellulosic biofuels to market. In addition, researchers who pursue gene trait modification are open to regulation nightmares and legal albatrosses.

The authors cite several traits that could be improved with gene modification including enhanced stress tolerance, reduced costs of conversion to liquid fuels, reduced use of water and fertilizer in cultivation, avoiding dispersal into the environment, and synthesis of new, renewable products such as industrial enzymes.

The authors conclude that the end result of a gene modification project should be regulated based on whether it is safe and beneficial, not the process used to produce it.

“It is essential that we create an intelligent regulatory system that does not indiscriminately penalize the gene modification process and obstruct essential field research,” Strauss said. “The one-size-fits-all style system of today treats the process of genetic modification as inherently dangerous, although many high-level science panels have concluded that the process is at least as safe as conventional breeding methods.”

Ultimately, the scientists concluded that solving these problems will require new ways of thinking, strong scientific and political leadership, and regulatory system that awards safe and beneficial new plants that could help solve the globe’s energy and environmental issues.

biofuels, Cellulosic, Ethanol, Research

White House Reaffirms Ethanol Support

Joanna Schroeder

Deputy Assistant to the President for Energy and Climate Change Policy Heather Zichal addressed the annual gathering of Renewable Fuels Association members yesterday. During her talk, she reiterated the President’s commitment to the ethanol industry regardless of feedstock or technology used.

More specifically, Zichal addressed some of the current policies in place designed to expand the ethanol industry and the need to recognize that the White House and the industry share a vision for the continued evolution of the biofuels industry.

Addressing the ethanol tax incentive directly, Zichal said: “The message I want to bring to you today is that we want to and look forward to engaging with the industry and the Hill as we look at options for reform. We want to make sure that it’s guided by a recognition that the existing program does work – we’re certainly not looking to upend a program that works, as occasionally happens in Washington. We want to make sure that we are all on the same page as we move forward and have these discussions.”

In addition, Zichal spoke of the Administration’s desire to see both current ethanol producers as well as next generation technologies succeed. “To be clear, this administration is working to provide continued support for first-generation corn ethanol, which we believe is a critically important renewable fuel source,” Zichal said. “At the same time, we’re also looking forward and are working to accelerate the creation and rapid deployment of advanced biofuels, which we think will ultimately become one of the nation’s most important industries in the years to come.”

Zichal also expressed appreciation for the thoughtful participation of the RFA and its members in constructively seeking solutions to issues currently before the industry. “We certainly welcome RFA’s willingness to advance new ideas about how to tackle these policies,” Zichal said. “The administration has had a strong partnership with RFA and we certainly look forward to continuing that.”

Ethanol, Ethanol News, RFA

Energy Awareness Month Puts Focus on Biodiesel

John Davis

It is the first and only domestically produced advanced biofuel produced in the U.S., so it’s no wonder biodiesel is being highlighted during October, Energy Awareness Month.

The green fuel’s biggest advocate, the National Biodiesel Board (NBB), is taking this month to draw attention to biodiesel and its role in “POWERING AMERICA: We’re On Target,” the theme for the next 31 days:

The theme depicts how, across the nation, Federal agencies continue to zero in on energy targets to:

* Stimulate the economy
* Lower operating expenses
* Reduce greenhouse gas emissions
* Achieve long-term energy and economic security

The U.S. Department of Energy first recognized October as Energy Awareness Month in 1986.

“As a fuel, biodiesel achieves virtually all of the goals set forth by DOE for Energy Awareness Month,” said Joe Jobe, National Biodiesel Board CEO. “The use of biodiesel greatly reduces greenhouse gases, stimulates the economy and helps America move toward its goal of energy security.”

Biodiesel is the only domestically produced, advanced biofuel available in the U.S. It also has the highest energy balance of any commercially available fuel in the U.S. For every unit of energy it takes to make biodiesel, 4.5 units of energy are returned.

Missouri is considered a leader in renewable energy and a natural home for the NBB. The Department of Energy’s Clean Cities program … dedicated to reducing the amount of non-renewable petroleum … says the biodiesel industry really practices what it preaches, as does the NBB itself. A few years ago, the Biodiesel Board renovated an old building in Jefferson City putting in automatic lighting, high efficiency appliances and reusable dishes. The building makes the maximum use of natural light and even uses recycled carpet and nontoxic paint … a truly green building for a truly green fuel.

Biodiesel, Government, NBB

Ohio Unveils State’s Largest Rooftop Solar Array

Joanna Schroeder

The Akron Metro Regional Transit Authority (RTA) unveiled the largest solar rooftop array in the state of Ohio today. RTA’s new solar rooftop on the RTA bus garages at METRO’s headquarters is rated at 488 kilowatts DC, and is expected to produce around 486,760 kilowatt hours of solar power a year. The $2.5 million project was installed by Ohio-based Third Sun Solar of Ohio and the array is comprised of 2076 of Sharp 235-watt solar modules. A portion of the cost of the project was provided by funding through the American Recovery and Reinvestment Act (ARRA).

“In collaboration with Third Sun Solar, we are so pleased to be helping Akron Metro reach its goals of sustainability by harnessing the power of solar energy.” said Eric Hafter, senior vice president, Sharp Solar Energy Solutions Group. “This project contributes to the same mission as Akron Metro in helping reduce the use of fossil fuels. Akron Metro reduces emissions by transporting people using efficient public transportation and now adds emission-free power to provide energy for their operations.”

Sharp has also been selected to provide solar panels for an additional phase of the project which will begin construction in late 2010. This phase, a second roof array on the same complex, will supply another 355 kilowatts DC and utilize an additional 1477 Sharp panels and will also be installed by Third Sun Solar. Sharp’s solar panels are designed to withstand rigorous operating conditions, while offering high power output per square foot of solar array.

“Taking public transportation has always been a great way to reduce your personal carbon footprint. But Akron Metro goes way beyond encouraging Akron residents to leave their cars at home,” said Robert Pfaff, Executive Director at Akron Metro. “In addition to solar power, we also use diesel/electric hybrid and natural gas buses in our fleet, and we recycle rainwater for use in landscaping and restrooms. We’re so proud that Ohio’s largest rooftop solar array is right here in Akron,” he said.

Using calculations from the Environmental Protection Agency (EPA), the new project will prevent 350 metric tons of CO2 emissions, the equivalent of 39,322 gallons of gasoline.

“We are pleased to help Akron Metro further their commitment to protecting our natural resources by investing in the energy solutions of tomorrow,” said Michelle Greenfield, CEO at Third Sun Solar. “Investments like this one in alternative energy solutions are helping drive the transformation of Ohio’s economy to clean, renewable energy and creating new green jobs,” she said. Twenty-nine green jobs were created or retained in Ohio as part of the Akron Metro solar project.

News, Solar

VeraSun Creditors Drop Corn Repayment Suit

Joanna Schroeder

Back in August, dozens of corn growers who sold corn to bankrupt VeraSun plants across the country in 2008 received letters asking them to repay the money. Should the farmer not comply, the letters threatened to take legal action but stipulated that they would accept payment to 80 percent of what the farmer received for their corn sales to VeraSun. The deadline for response was today and with the help of the National Corn Growers Association along with state corn groups, farmers were encouraged to tap into legal resources prior to responding.

Today, these same farmers received good news – attorneys are dropping their questionable claims for payment.

“This is great news for farmers at a time when we need to focus on bringing in our crops,” said National Corn Growers Association (NCGA) President Darrin Ihnen. “We’re glad the lawyers saw the light and realized they had no legal justification to go after us. We had an excellent team working on this to make sure we had the right information, and to present our case.”

NCGA explained that because of bankruptcy law, attorneys representing VeraSun creditors were able to seek repayment from farmers and others who received money from VeraSun within 90 days prior to the bankruptcy filing. Ironically, the farmers who were asked to repay the money were not “given back their corn”.

In strongly worded correspondence sent Tuesday to the law firms demanding payment, an attorney assisting NCGA insisted that the lawyers withdraw their demands.

“We believe that many of the foregoing demands were made without any legal and factual foundation and, as such, constitute an impermissible effort to collect alleged debts that are clearly not owing,” wrote attorney David Lander of Thompson Coburn. “They appear to have been made without the inquiry reasonable under the circumstances. Moreover, we believe that the claims asserted in the vast bulk of these letters are not warranted by existing law or a non-frivolous argument for the extension, modification or reversal of existing law or the establishment of new law.”

corn, Ethanol, NCGA

Early Bird Deadline for Biodiesel Conference Approaches

John Davis

Time is running out for exhibitors to take advantage of the early bird discount to the upcoming National Biodiesel Conference & Expo, February 6-9, 2011 in Phoenix, Arizona. Our friends at the National Biodiesel Board have sent out a friendly reminder that you can save $200 on your booth space reservation if you book it by this coming Tuesday, Oct. 5, 2010:

The annual National Biodiesel Conference & Expo is the only event that gathers biodiesel decision-makers from all around the United States and the world. Opportunities abound for attendees and exhibitors to network, connect and learn. This event will explore the topics of governmental policy, technical issues and marketing trends in the biodiesel industry.

2010 has been an extremely tough time for our industry. The uncertainty surrounding the biodiesel tax credit and the implementation of the RFS-2 has made 2010 one of the most challenging years in the industry’s past. Our hope is that this conference will be the springboard to greater opportunities for our industry. 2011 is shaping up to be a banner year for biodiesel production and industry growth.

NBB officials point out that conference attendees are the high-level decision-makers in their respective areas. You won’t want to miss this true “meeting of the minds!”

Attendee registration is coming soon. For more information on getting your booth, click on the National Biodiesel Conference & Expo website. See you in Phoenix!

Biodiesel, Biodiesel Conference, NBB

Key Vote in US House Moves Forward Algae Biofuels

John Davis

A key vote in the U.S. House of Representatives has moved forward a measure that will help the nation’s algae biofuels industry.

Passage of H.R. 4168, the Algae-based Renewable Fuel Promotion Act, garnered praise from Sapphire Energy for two key Congressmen, Reps. Harry Teague (D-NM) and Brian Bilbray (R-CA) whose bi-partisan support lead to the bill’s passage:

Congress took the extraordinary action this week to give algae-based fuel technology federal incentives similar to those for other biofuels, leveling the playing field for this promising technology. This move will serve to hasten the pace of development of these fuels, addressing our nation’s energy independence goals sooner.

”The many tireless months of effort made by Reps. Teague and Bilbray show their belief that algae-based fuels, like our Green Crude, have a crucial role in solving the nation’s and the world’s crippling energy challenge,” says Jason Pyle, CEO, Sapphire Energy. “These policies are essential to truly grow green fuel at scale; we need the same tax structure that oil and gas get today. Passage of this bill is the first step in that direction.”

The bill now moves to the Senate.

algae, biofuels

Alternatives Key Part of Navy Energy Security Forum

John Davis

The U.S. Navy will be hosting this year’s Navy Energy Forum, Oct. 12-13 at the Ronald Reagan Building and International Trade Center in Washington, D.C.

This yearly forum, this time entitled “Seapower Repowered: Energy as a Force Multiplier and Strategic Resource,” brings military, government, and industry leaders to talk about energy and the warfighter:

Distinguished Navy speakers include the Honorable Ray Mabus, Secretary of the Navy, and Admiral Gary Roughead, Chief of Naval Operations. Guest speakers include Former Senator John Warner (R-Va), Dr. George Friedman, international affairs expert and chief executive officer of STRATFOR, and Dr. Daniel Yergin, chairman of Cambridge Energy Research Associates and Pulitzer Prize winner for his bestseller, “The Prize.”

Building on a year of progress toward the Secretary of the Navy’s energy goals announced in fall 2009, participants will focus on policies, partnerships, technologies, and culture change needed to move these goals forward. Issues such as reducing lifecycle energy costs, grid security, and alternative fuels will be addressed. The forum will also address the “Navy Energy Vision for the 21st Century,” which identifies the Navy’s way forward for increasing energy security.

Navy officials say energy is a national security issue.

More information about the conference is available at http://www.ndia.org/meetings/1600/Pages/default.aspx.

Government