Propel Sends Out a Thank You to Its Customers

Joanna Schroeder

Propel is taking a leadership role in California and Washington in bringing biofuels such as ethanol and biodiesel to drivers. Earlier this month, Propel opened a new E85 station in Oakland, California, just one of nearly two dozen planned for the Bay area. Also this summer, Propel received an $11 million grant from the U.S. Department of Energy and the California Energy Commission to help install 75 additional E85 pumps throughout California over the next two years.

The company, however, knows that part of their success is due to the customers who support both the ethanol industry and their company through their purchase of E85. They are saying “thank you” to these customers with a new video that features customers who come to their stations to fill up with ethanol. The video was produced by Chris LaPlante and Emily Shellabarger, two ethanol enthusiasts.

The next station to go online will be located in Placerville, California.

Biodiesel, biofuels, E85, Ethanol

Didion Ethanol Hosts Energy Expo

Joanna Schroeder

Didion Ethanol hosted a successful Green Energy Expo last week with more than 800 attendees from around the country in attendance. The participants were treated to a plant tour and one of the biggest draws was the plants new zero water discharge system that was installed this past Spring. According to Didion’s plant manager, Adam Lemmenes, the new water system has reduced well water usage by 145,000 gallons per day.

In addition to lowering its water footprint, Didion has also reduced its energy consumption over the past few years through various energy conservation projects. In total, the various technologies have saved enough energy to power 828 homes per year. That is equivalent to taking 1,775 cars off the road, which eliminates approximately 20 million CO2 emissions per year.

However, Didion isn’t done lowering its energy usage. A new project underway, when completed, will reduce its energy consumption by another 25 percent and will be able to create 1.5 unit of ethanol power for every unit of energy input.

Another hot topic of discussion during panel discussion  is the fate of the ethanol tax credit (VEETC) that is set to expire at the end of this year. Panel members noted that while the tax credit does not directly benefit ethanol producers nor corn growers, it has “strong implications if not passed” and concluded that “Passing VEETC is a benefit to anyone purchasing gasoline and a win-win for everyone.”

Education, Ethanol

Is Iowa Putting the Cart Before the Horse?

Joanna Schroeder

Is the Iowa Environmental Protection Commission (EPC) putting the cart before the horse in their proposition to add greenhouse gas emission amendments to the Iowa Administrative Code? The Renewable Fuels Association (RFA) and Iowa Renewable Fuels Association (IRFA) think so. The two organizations have joined forces to urge the EPC to delay consideration on decisions that would increase the regulatory burden faced by Iowa’s biofuels producers. The industry has been struggling from an economic slowdown and faces additional uncertainty at the federal level regarding similar GHG regulations.

In addition, the groups say that passing GHG regulations at the state level could put Iowa at odds with federal regulations if and when they are passed.

The two organizations wrote in their comment letter, “In addition to substantially increasing the regulatory burden faced by the state’s biofuel producers, we are concerned that amendments by the EPC may result in Iowa implementing more stringent regulatory requirements than may ultimately be required by the federal regulation with which the state is seeking to harmonize. As such, we are urging the EPC to delay consideration of the proposed amendments until such time that there is more certainty surrounding federal regulatory actions intended to regulate greenhouse gas (GHG) emissions. Alternatively, and at the very least, EPC should add certain provisions to its amendments that would nullify regulatory actions based on federal rules that may ultimately be stayed or deemed invalid by a court.”

More than likely, if the EPC were to pass GHG regulations, they would face a similar fate as the Environmental Protection Agency (EPA) who is facing a multitude of legal challenges opposing the rules including a motion to stay any further EPA action on this front.

“Given these pending legal challenges, the state of Iowa should not adopt proposed changes to the state law and revision to its Clean Air Act Implementation Plan that could ultimately make its regulations more stringent than federal regulations. This is precisely what would occur should the EPA Tailoring Rule be stayed or ultimately invalidated,” continued the letter.

According to the two groups, another major issue which renders the EPC consideration premature is the EPA’s movement to include biogenic emissions of C02 under the Tailoring Rule. Should EPC adopt this rule, it would put them in violation by the Iowa Department of Natural Resources, which acknowledge the carbon neutrality of biogenic emissions from biofuels production.

Ultimately, RFA and IRFA are asking that if EPC continues to move forward with its GHG emission policy, then they should include provisions that would nullify their policies if the federal Tailoring Rule is stayed or deemed invalid. You can read the comments in full here.

Environment, Ethanol, RFA

Algae Assoc. Conference to Focus on Commercial Scale

John Davis

The National Algae Association (NAA) will be holding its national conference next week, and the focus of the gathering will be on commercial scale production of the green microbes.

NAA officials say at the Sept. 23-24 conference at the Sheraton North Houston near George Bush Intercontinental Airport, they will be working on the premise that algae will be delivering on a large scale soon because the science problems have been solved … now, it’s an engineering problem:

The NAA Engineering Consortium has developed preliminary design specs for a 100-acre commercial scale algae production facility build-out, identifying and resolving many of the scale-up issues that will be encountered as we move the industry out of the lab and into commercialization. These plans, along with the CAPEX and OPEX financial models and detailed ‘algaenomics’ developed on behalf of NAA, will be reviewed and discussed in great detail at the next NAA conference, September 23-24, 2010, in Houston, Texas.

Also on hand to discuss new and innovative ways to help get algae out of the lab and into commercial-scale production will be Dr. Brian Hampson of CalPoly, Marco Brocken of Evodos, Joseph Holroyd of LakeMaster Corp, Victoria Kurtz of Fluid Imaging Technologies, Surijit Khanna of BARD Holding, OriginOil, Phykos, Dave Philbrook of Water Management Solutions, LLC, Dr. Matt Prufert of DRS Technologies, Mark Hanson of Stoel Rives, Serge Randhava of United Technologies, Inc., Bill Ramey of Novak Druce + Quigg, Sebastian Thomas of Parry Nutraceuticals, Bob Vitale of Waterwheel Factory, Bob Weber of Sunrise Ridge Algae, and Will Thurmond of Emerging Markets Online. Hank Gilbert will discuss his Fields to Pump Biofuels Initiative, a program that can be implemented throughout the country.

More information and registration are available here.

algae, Biodiesel, biofuels

Solazyme Inks Deal to Provide Algal Biofuel to Navy

John Davis

Our friends at Solazyme, Inc. have inked a new deal with the U.S. Navy to provide 150,000 gallons of advanced biofuels made from algae.

This post on BrighterEnergy.org says the San Francisco supplier of the green fuel has already delivered more than 20,000 gallons of its biodiesel to the Navy from its 2009 contract:

The company hailed the achievement as the world’s largest delivery of non-alcohol advanced biofuel made completely by microbes.

Solazyme, which has been working with a refining partner, Honeywell-subsidiary UOP, said the new deal for 2010-2011 was 7.5 times larger than its previous order, and should bring it closer to commercial production for its process.

CEO Jonathan Wolfson said: “We are excited by the new DoD contract which calls for much larger volumes of Soladiesel®HRF-76 Renewable Naval Distillate fuel, and view its signing on the heels of our successful delivery as strong validation of Solazyme’s technology and of our prospects to provide meaningful quantities of low carbon fuels for our national defense.”

The buy is seen as just the beginning of the Navy’s effort to get half of its energy from renewable sources by the year 2020.

algae, Biodiesel, biofuels

Biodiesel Incentive Shot Down Again; Dem Calls it “Stunt”

John Davis

The federal $1-a-gallon biodiesel tax credit failed to move forward yet again today, as one of the top Democrats in the U.S. Senate dismissed the effort as a “stunt.”

The Senate defeated Sen. Charles Grassley’s (R-IA, pictured on right) attempt to retroactively revive the credit as part of a small business bill by a vote of 41-58… far short of the 67 votes needed. Meanhwhile, the Des Moines Register reports that Senate Finance Committee, Montana Democrat Max Baucus, called Grassley’s motion and another GOP proposal “as stunts meant to score political points.”

“These motions are the way that folks try to embarrass other people,” he said.

Grassley spokeswoman Beth Pellett Levine said he “has been stonewalled by the Democratic leadership for nearly a year now. There isn’t anybody who would blame him for doing everything possible to pass the noncontroversial biodiesel tax credit.”

The industry is now looking toward having the subsidy included in legislation that would extend a number of tax provisions.

Said Grassley, “I have confidence that eventually the biodiesel tax incentive will be passed, but I hope it’s not too late for the thousands of people across the country who are already out of work because of the lapse.”

The American Soybean Association was critical of the Senate’s action:

“ASA is severely disappointed in the failure of the Senate to extend the biodiesel tax credit,” Joslin said. “At a time when jobs and renewable energy production are cited as top priorities, it is unacceptable that Congress would fail to extend the biodiesel tax credit. The biodiesel tax credit has a direct impact on jobs and it is a homegrown renewable energy source – the first and only advanced biofuel commercially produced in the United States.”

Meanwhile, the National Biodiesel Board said the lack of certainty over whether the subsidy will return is killing the biodiesel industry.

Biodiesel, Government, Legislation

Ethanol Report on Export Exchange

Cindy Zimmerman

This edition of “The Ethanol Report” features comments from Renewable Fuels Association (RA) President and CEO Bob Dinneen and U.S. Grains Council (USGC) CEO and president Tom Dorr about promoting exports of the ethanol co-product distillers dried grains with solubles (DDGS).

usgcThe two organizations are working together on the upcoming “Export Exchange” conference that will focus on increasing U.S. exports of DDGS. “This is going to be an opportunity for two and a half days in which people can get together, meet with buyers, meet with producers, listen to nutritionists, analysts and others explain the value of how to use and how to access these products,” says Dorr.

Ethanol Report PodcastDinneen says exports are critical because the industry has already hit “a feed wall” when it comes to use of DDGS in the domestic livestock industry. “While domestic markets for DDGS continue to expand, quite frankly we’ve grown that market pretty rapidly over the last several years and the opportunity for continued expansion domestically are fewer and farther between.” That’s why RFA believes the conference is a must-attend event for ethanol producers. “Because DDG marketing is so important to the bottom line of an ethanol producer. About 40 percent of your feedstock costs can be recovered in the marketing of DDG,” Dinneen said.

The Export Exchange is being held October 6-8 at the Hyatt Regency McCormick Place Hotel in Chicago, Ill. More information and registration is available on-line here.

Listen to or download the Ethanol Report here: Export Exchange Ethanol Report

Audio, corn, Distillers Grains, Ethanol, Ethanol News, Ethanol Report, Exports, RFA, USGC

Farmers Dealing With VeraSun Payment Letters

Cindy Zimmerman

Hundreds of farmers have been showing up at meetings held around the Corn Belt trying to find out what they should do about letters received saying they owe money for grain delivered two years ago to a bankrupt ethanol company.

VeraSunVeraSun officially filed bankruptcy nearly two years ago. Just a few months prior to filing, the company reported a 500 percent revenue increase over the previous year and they opened their 14th plant just about six weeks before the bankruptcy. But, any farmers who got paid for corn delivery in the 90 days prior to the filing at the end of October 2008 are now being asked nicely to repay that money. If they nicely agree, they can just pay 80 percent by September 30 – if they don’t, they have to pay back the full amount.

The letters went out to an untold number of farmers in South Dakota, Nebraska, Iowa and other states on August 20. The amounts involved vary per farmer, but there are reports of some who were paid as much as $100,000. The initial reaction to the letters was disbelief and shock, but advocacy groups and farm organizations have been working to inform farmers about their rights and what actions they need to take.

According to an explanation by the Iowa State University Center for Agricultural Law and Taxation the letters are based upon a
“preference theory” under federal bankruptcy law. Basically, lawyers for people who were owed money by VeraSun when it declared bankruptcy are going after everyone that VeraSun paid in the 90 days prior to filing because there is a chance they might have gotten “preferential payments” by VeraSun under the theory they may have paid off some people but not others. It is up to the farmers who received payments for grain to prove that they were made “in the ordinary course of business.”

“Our farmers have done no wrong, and yet they must now invest time and treasure fighting off lawyers over a legal transaction made years ago,” says National Corn Growers Association (NCGA) president Darrin Ihnen. “In the end, this is all about taking money from farmers who lost out on previous contracts, making them spend more money and then giving the money to the bankers and others. That is simply not right.”

At meetings this week, farmers have been urged to seek legal counsel and reply to the letters before September 30. Legal counsel for corn grower organizations on the state and national level are collaborating on how best to respond to the letters.

corn, Ethanol, Ethanol News

Renewable Fuels Awareness Month in Nebraska

Cindy Zimmerman

Renewable FuelsNebraska Governor Dave Heineman visited Husker Harvest Days in Grand Island Wednesday to proclaim September as Renewable Fuels Awareness Month in Nebraska.

Joined by representatives of the Nebraska Corn and Soybean Boards, Gov. Heineman said that renewable fuels are a critical component of energy independence and energy security, while providing economic growth and vitality in the state. “Nebraska is one of the leading producers of corn and soybeans in the United States – agricultural commodities used in the production of ethanol and biodiesel, which reduce our dependence upon foreign oil,” he said, adding that ethanol replaced the need for more than 300 barrels of oil last year, while biodiesel displaced the equivalent of 38 million barrels of crude oil.

Renewable FuelsAlso on hand was Olympic gold medalist Curt Tomasevicz, on behalf of the Nebraska Corn Board, who touched on the importance of the quest toward energy independence. “This isn’t just about creating a more robust domestic energy supply. This is about keeping American dollars at home instead of sending billions of dollars overseas for imported oil. This is about American self-reliance and ingenuity. This is about taking charge of our future – and changing that future for the better,” he said.

Pictured is Governor Dave Heineman (second from left) with Alan Tiemann, chairman of the Nebraska Corn Board; Lisa Lunz, chairman of the Nebraska Soybean Board, and gold medalist Curt Tomasevicz.

Biodiesel, corn, Ethanol, Ethanol News, Government, Soybeans

Ethanol Industry E15 Vehicle Study Detailed

Cindy Zimmerman

A new study released this week makes a good case for allowing up to 15 percent ethanol in all vehicles, to avoid having different standards for older cars. The ethanol industry is hoping it will help the Environmental Protection Agency rule favorably on the request to grant a waiver allowing E15 that was requested nearly two years ago.

Renewable Fuels Association“Indications are that the agency is contemplating granting a partial waiver,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen. “We have concerns about the confusion that might create in the marketplace for consumers and for gasoline marketers themselves.”

RFA called on Ricardo, Inc., an internationally recognized automotive and engineering firm, to study the feasibility of introducing E15 blended fuel in 1994 to 2000 model years. In a Wednesday morning webcast and conference call with media, Ricardo chief gasoline product group engineer Luke Cruff presented the findings of the 90 page study. He explained how and why the study looked at vehicles made by six companies during the 1994-200 period, which currently total almost 63 million or 25% of the light duty vehicles on the road. Cruff says the report came to the overall conclusion that “the adoption of E15 is not going to adversely affect fuel system components in properly engineered vehicles, or cause them to operate in a suboptimal manner as opposed to how they currently operate on E10.”

According to the report, the evaluation of the vehicles involved the study of several technical areas. “Fuel system changes from 1994 to 2000 were analyzed. The introduction of various emission and diagnostic regulation levels during the studied time period was summarized. Emissions certification data from the most common vehicle platforms were collated and evaluated for current emissions outputs relative to the original legislated levels. After treatment systems and vehicle calibrations from the period of interest were analyzed to determine the likelihood of deterioration due to changes in ethanol content. Properties of gasoline / ethanol blends were evaluated relative to fuel system materials commonly used during the study period, and the key degradation mechanisms of these materials were established. Finally, physical fuel system parts were procured and evaluated to identify the deterioration that would be expected for 1994 to 2000 MY parts still in service today.”

Listen to or download the opening statements of Dinneen and Cruff in the player below. Diagrams and photos referenced by Cruff can be found in the report.

RFA Ricardo Press Conference
Audio, Ethanol, Ethanol News, RFA