Aussie Customer to Get Algae-Oil Single Step System

John Davis

A California-based producer of renewable oil from algae production products is getting ready to ship a system that uses a single step to get the oil out of the green pond scum to one of its customers down under.

OriginOil, Inc. has notified Australian MBD Energy Limited that it is ready to ship a Single-Step Extraction™ System (seen in the video below), a cheaper method of algae-oil extraction that eliminates the use of petrochemicals or alcohol solvents and is the second product to be delivered in its multi-phase commercialization agreement:

OriginOil Extracts Oil from Algae Timelapse from OriginOil on Vimeo.

“We believe OriginOil’s concentration and extraction technology holds promise of reducing costs and energy requirements in the algae harvesting process,” said Andrew Lawson, Managing Director at MBD Energy Ltd. “We look forward to now using the equipment we’ve purchased from OriginOil to finalize preparations for our 1 hectare Bio CCS algal synthesizer test facility we’re about to construct at Tarong Power Station in Queensland. If performance tests go to plan we expect to later expand the 1 hectare synthesizer to 80 hectares at which point we hope to produce approximately 10,000 tonnes of oil per year.”

OriginOil’s unit is the second product to be shipped in the test phase of a multi-phase commercialization program under which OriginOil has agreed to supply MBD Energy with progressively larger installations of its algae-to-oil technology as the scale of MBD’s algal synthesizer projects grows. The two products are supplied under a 1 year lease-to-own program. Subject to achieving success in the initial test phase, MBD will purchase significantly larger systems to serve its power station projects in Australia, beginning with the 1 hectare algal synthesizer test plant at Tarong Power Station in South Eastern Queensland, and potentially expanding to full production at all three of MBD’s power station project sites in Australia.

MBD Energy officials say that each of its power station projects can grow 80 hectare commercial pilot plants for algae, each capable of producing about 3 million gallons of oil that can be used for renewable energy and plastics, as well as producing 25,000 tonnes of animal feed each year. Furthermore, the plants could eventually be expanded to 1,500 hectares each, feeding the the algae with the power station’s flue-gas emissions.

algae, Biodiesel, biofuels

BP Closes Sale on Verenium Cellulosic Business

Cindy Zimmerman

BPBP Biofuels is now the official proud owner of Verenium’s cellulosic biofuels business. The companies announced the closing today of the $98.3 million transaction announced on July 15, 2010.

VereniumUnder the sale, BP acquires the Jennings, LA biofuel pilot plant and the demonstration facility, as well as the San Diego R&D facilities. BP also receives Vereniums cellulosic biofuels and enzyme technologies and related IP. Verenium retains its commercial enzyme business, including its biofuels enzymes products and has the right to develop its own lignocellulosic enzyme program. Verenium will also retain select R&D capabilities, as well as rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through this agreement.

“We are very pleased that our strategic development partnership with BP has successfully advanced our cellulosic ethanol technology to the cusp of commercialization,” said Carlos A. Riva, President and Chief Executive Officer at Verenium. “We believe that BP is the right company to make the investment needed to carry this forward and expedite the commercialization of the technology.”

BP will also become the sole investor in Vercipia Biofuels and Galaxy Biofuels; both 50-50 joint ventures of the two companies.

Cellulosic, Ethanol, Ethanol News

Ethanol E-Xchange Blog Offers RFA Commentary

Cindy Zimmerman

The Renewable Fuels Association (RFA) recently debuted a new blog on their website that offers commentary from RFA staffers on various topics.

Renewable Fuels AssociationThe E-Xchange Blog debuted earlier this summer and the staff have proven to be quite prolific in their posting. We are going to start featuring posts from the blog as a regular feature here on Domestic Fuel.

Speculators returning to the grain market is the topic of the most recent post by RFA Vice President for Research Geoff Cooper, who notes that “hedge and index fund investors have quietly returned to the agricultural commodities market in droves over the past few weeks.”

Renewable Fuels Association LogoWith the stock market continuing to flounder, these speculators are positioning themselves for another bull run on agricultural commodities and crossing their fingers that corn prices go higher. They’ve laid down their bets that the drought in Russia and flood-induced crop failures in Pakistan will leave the world short of grain and spur demand and prices for U.S. grains. As clearly demonstrated by the 2008 commodities bubble, supply-demand fundamentals take a back seat to frenzied speculation when this many trigger-happy gamblers are in the market. Don’t be surprised if even the slightest hints of higher demand for U.S. crops or lower-than-expected U.S. supply touches off speculative hysterics not seen since the spring and summer 2008. If a speculative rally on corn does come to pass this fall, let’s at least hope that the pundits recognize the role of speculators and avoid immediately jumping to the conclusion—as they did in 2008—that biofuels had anything to do with it.

Cooper gives a nice analysis of what happened in 2008 when oil, gas, and corn prices skyrocketed and then the bubble burst and what is happening right now in the market.

Speculators are returning to the agricultural commodities markets in numbers not seen since the weeks leading up to the spectacular bursting of the 2008 bubble. In fact, the Commodity Futures Trading Commission’s (CFTC) latest Commitments of Traders report shows speculative investors hold as many corn futures contracts today as they did at the height of the 2008 bubble. Not since May 2008 have “non-commercial” investors (CFTC’s parlance for “speculators”) held as many net long positions as they do today (long, or “bullish,” positions are contracts that are purchased and held in the hope of profiting from an increase in prices). Speculators held 358,000 net long positions on corn last week, which is the equivalent of 1.8 billion bushels. That compares to a previous high of 360,000 net longs in mid-May 2008, at the height of the bubble.

Read Cooper’s entire commentary here.

corn, Ethanol, Ethanol News, RFA

Access, Policy & Predictability Needed for Ethanol

Joanna Schroeder

“The 50th Anniversary of OPEC made our nation and others dependent on a few countries for oil – many that don’t have our best interest at heart,” said Tom Buis, CEO of Growth Energy during a press conference at the Farm Progress Show currently being held in Boone, Iowa.

OPEC was formed on September 14, 1960 and today, America’s dependence on oil from OPEC countries has put our country’s security at risk. One answer to this is ethanol; yet ethanol’s future in uncertain with several policies in jeopardy including the E15 waiver, ethanol tax credit and ethanol tariff.

The industry is currently being held hostage by a fickle federal policy and today, Washington is pretty much in a stalemate. “It’s not because there aren’t great ideas, or not great needs to move forward, but it’s a very politically competitive town,” explained Buis. “And both political parties want to win this next election. It’s like Iowa State playing Iowa in football. Neither side wants to see the other team score any points. The opportunity for bipartisan working relationships is not the most conducive at this time. Hopefully that changes after the elections.”

There is still some hope for this year, as Senator Reid (D-NV) has called for a lame duck sessions to help on November 15, 2010.

Buis has stressed that the ethanol industry doesn’t have a production problem, but a market access problem and passing these varied policies, especially the E15 waiver, will help to open up new markets. The simple act of doing this, says Buis, is that ethanol will help reduce an additional 7 billion gallons of ethanol per year. “It’s like saying to Hugo Chavez and Venezuelan oil, we’re not buying your oil any more.”

Iowa Ag Secretary Bill Northey, noted that just this week, an ethanol plant sold a gallon of ethanol for $1.62. “We actually have ethanol plants right now that are producing ethanol, selling ethanol, for less than the cost of gasoline and that’s without the tax credit.”

He continued, “Certainly we need some of those incentives to continue. We need some predictability, we need more than three months predictability with those incentives going off this December. We need a longer-term vision of what can happen out there.”

A longer term vision is definitely needed if America truly wants to meet is goal of achieving energy independence, and a major step to achieving this is passing more comprehensive policies including the ethanol tax credit, E15 waiver and flex-fuel vehicle policy.

Farm Progress Photo Album

You can listen to the Growth Energy press conference here. Growth Energy Press Conference During Farm Progress Show

Audio, Ethanol, Growth Energy, News, politics

Mother Earth News Sponsors Alt Energy Fair

John Davis

Green living guide Mother Earth News wants to give average consumers some of the tools they need to get the most out renewable energy. That’s why publication is offering the Mother Earth News Fair, Sept. 25-26 at Seven Springs Mountain Resort near Pittsburgh.

Organizers promise more than 15 hands-on demonstrations ranging from beginner’s information for passive solar systems to building your own electric car!

Scheduled renewable energy-related speakers and topics include:

* Dan Chiras – introduction to solar electricity; passive solar electricity; passive solar heating; experts’ panel
* James Dunn – personal experience with a geodesic dome solar greenhouse
* Richard Freudenberger – small-scale alcohol fuel; basic passive solar design; experts’ panel
* John Ivanko – powering your home with renewable energy
* Angus Macdonald – DIY construction of solar and energy-efficient homes and garden structures
* Ben Nelson – building your own electric car, cheap
* Greg Pahl – community-supported energy; experts’ panel
* Darree Sicher – alternative fuel uses for sewage sludge
* Michael R. Wurzbacher – masonry heaters, stoves and ovens
* Brad Yocum – why now is the time to go solar

There will be more than 200 sessions in all. For more information and tickets, check out the Mother Earth News Fair website.

Electric Vehicles, Ethanol, Ethanol News, News, Solar

Growth Energy Talks Ethanol With Iowa Ag Secretary

Cindy Zimmerman

fp10It was the “Bill and Tom Show” at the 2010 Farm Progress Show on Wednesday as Growth Energy hosted a discussion about ethanol between CEO Tom Buis and Iowa Agriculture Secretary Bill Northey held a panel discussion to talk about Growth Energy’s Fueling Freedom Plan, the upcoming energy bill and EPA’s pending decision on the E15 waiver.

Both Buis and Northey said there is a critical need for the EPA to approve E15 and open the market for ethanol in order to revitalize our rural economies, clean our skies and support the continued innovation in the ethanol industry.

“We don’t have a production problem, we have an access to the market problem,” Buis said. “By moving to E15 and eliminating the artificial barriers to the fuel market we can create a market for all ethanol to reduce our dependence on oil, strengthen our economy and improve our environment.”

“It is vital that Congress and the EPA move forward and approve these needed long-term policy proposals,” Northey said. “It is important that we send a signal to the industry and investors that support structures that will remain in place and allow the industry to continue to advance and adopt new technologies including eventually cellulosic ethanol.”

We’ll have audio from the panel to be posted along with commentary from Joanna Schroeder who was at the event.

Ethanol, Growth Energy

Propel Opening More Ethanol Pumps in California

Cindy Zimmerman

Propel Fuels is opening more pumps with 85 percent ethanol for California flex fuel vehicle (FFV) drivers.

The company held a grand opening event in Oakland this week to formally launch a network of renewable fuel stations for the Bay Area, which will include more than 20 stations across the Bay, with up to half opening by the end of this year. The event also announced a $10.9 million grant from the U.S. Department of Energy (DOE) and California Energy Commission (CEC) to build and operate 75 retail renewable fuel stations throughout California over the next two years.

At the grand opening, California Energy Commissioner Anthony Eggert (pictured) said the station development project, known as the Low Carbon Fuel Infrastructure Investment Initiative (LCFI3), will help the state with the development and deployment of low carbon fuels and clean vehicles. “The Energy Commission is proud to team up with Propel Fuels and the partner agencies to bring next generation low carbon biofuels, including cellulosic ethanol, to the nearly half a million flex fuel vehicle customers in California, while creating hundreds of green jobs, and continuing to lead the way in our nation’s battle against climate change,” said Eggert.

Propel will work with community partners CALSTART and East Bay Clean Cities to educate consumers and fleets on the wide spread benefits of low carbon, alternative fuels available today and those next generation fuels coming in the future.

“Presently in California more than one million diesel and Flex Fuel passenger cars are capable of running on renewable fuels, but there hasn’t been a sufficient number of renewable fuel stations,” said John Boesel, President and CEO of CALSTART. “This program takes a major step forward by creating 75 new renewable stations which will give consumers the choice to say ‘no’ to oil dependence, ‘yes’ to the American economy and ‘yes’ to the environment.”

Propel has already begun construction of the station locations in major markets across California, with the network of 75 stations funded by this project to be complete by the end of 2011. Currently there are three locations open in the Bay Area (Fremont, Oakland, South San Jose) with additional sites planned for Downtown San Jose, North San Jose, Berkeley, Palo Alto, Redwood City, Livermore, and Concord in the coming months.

Thanks to Jamie Quick with Propel and Paul Wikoff for the photos from the event.

Biodiesel, Ethanol, Ethanol News

Outfitter Dresses Flagship Store with Solar Panels

John Davis

Retail outfitter L.L.Bean is turning to the power of the sun for its flagship store.

The company says it has used stimulus bucks to install a 180-tube solar hot water collector array that provides 100 percent of the hot water to the Freeport, Maine outlet:

The Efficiency Maine Commercial Grants ­ funded by the American Recovery and Reinvestment Act (ARRA) ­ pay up to 50 percent of eligible project costs.
The stimulus funding reduced payback projections for L.L.Bean’s new hot water solar system to less than 5 years, with immediate cost savings. L.L.Bean worked with Revision Energy of Portland on design and installation of the solar hot water system.

“The ability to create affordable, on-site renewable energy is a priority for L.L.Bean,” says L.L.Bean spokeswoman Laurie Brooks. “We’ve been using solar hot water panels at our corporate offices since the early 1980s, and they’re still working great. Solar panels are efficient, clean and require minimal maintenance.”

Visitors to L.L.Bean’s first Green Expo in June were able to see the newly installed panels that produce hot water, courtesy of the sun, for the store’s two cafes and public and employee restrooms. In the first week after installation, the solar system was generating 100 percent of the hot water for the store.

“We want visitors to see these solar panels and make the positive connection that L.L.Bean is investing in and promoting renewable energy,” says Brooks.
“The more businesses that make these types of changes, the better. It’s our hope that eventually green technology will become mainstream, and prices for
solar technology will become more affordable.”

The company was also able to use some state and federal tax credits and rebates to fund the project.

Solar

Waste to Cellulosic Ethanol Project in Michigan

Cindy Zimmerman

Michigan Governor Jennifer Granholm recently helped launch the new American Process Inc. (API) waste-to-cellulosic ethanol clean energy project in Alpena.

API, in partnership with San Antonio’s Valero Energy Corporation, received $4 million from the Michigan bioenergy Centers of Energy Excellence (COEE) program to establish a pilot scale biorefinery at the Decorative Panels International hardwood plant in Alpena. The $4 million in COEE funding to API helped secure a U.S. Department of Energy grant for $17.9 million. The biorefinery will convert the process waste effluent from the plant into cellulosic ethanol, sodium acetate and clean, warm water. The project has potential to be replicated across the state in other biorefineries, pulp and paper mills, and food and agricultural processing plants.

API has invested $10 million in the project and estimates that replication across Michigan in existing industries alone could create annual economic value of $200 million within 10 years.

bioenergy, Cellulosic, Ethanol, Ethanol News

Ethanol Co-Product Helps Increase Ag Exports

Cindy Zimmerman

The U.S. agricultural exports picture continues to be a bright one thanks in part to more exports of the ethanol by-product dried distillers grains (DDGs).

In the latest USDA report on exports, the forecast for 2010 exports was increased to $107.5 billion, up $3 billion compared to the May estimate. Almost half of that gain was in the revised estimate for grain and feed exports – up $1.2 billion to $27.2 billion from the May forecast. Corn shipments are increased 1 million tons and $100 million, reflecting stronger shipments in recent months as demand for feed grains and feed products (especially DDGS) has been stronger than expected. “Agriculture is one of the few major sectors of the economy today that has a trade surplus, which we are now forecasting to be a little over $30 billion,” said Agriculture Secretary Tom Vilsack..

The forecast is even better for next year, up to $113 billion, very close to the record $115 in 2008, thanks to sharply higher unit values and volumes for wheat and corn, as well as increases in products like DDGs. “I think it’s an indication of the quality of what we’re producing, which I think has allowed us to aggressively market this product as sort of an offshoot of what’s taking place in the biofuels industry,” Vilsack said. “This is an untold and I think often under-appreciated aspect of our economy in terms of how productive American farmers are and how innovative we’ve become with what we grow and what we raise and how much more opportunity there is as we expand biofuel production, beginning to use other feedstocks. I think we’re just going to continue to see more and more of these kinds of opportunities, byproducts and co-products of the process being developed.”

Another reason for ethanol producers to attend the upcoming Export Exchange, sponsored by the US Grains Council and the Renewable Fuels Association, with the express purpose of getting buyers and sellers of DDGs in particular together. More than 170 international buyers of U.S. DDGS and coarse grains are scheduled to attend the event, including representatives from China, Japan, Taiwan, Korea and Vietnam – countries which have a major interest in DDGS. South Korea, Hong Kong, and Southeast Asia account for two thirds of the forecast increase in agricultural exports this year compared to May.

Distillers Grains, Ethanol, Ethanol News, RFA, USGC