ACE Conference 2026

Global Oil Subsides Reach $312 Billion

Joanna Schroeder

Today, the International Energy Agency (IEA) released its 2010 Edition of the World Energy Outlook in which it reported that global fossil-fuel subsidies have amounted to more than US $312 billion in 2009. The number includes subsidies to fossil fuels used in final consumption and to fossil fuel inputs to power generation. However, the report did not include direct producer subsidies that topped US $100 billion last year according to the Global Renewable Fuels Alliance (GRFA).

The IEA report noted that the $312 billion was down from US $558 billion in 2008, most notably because oil prices declined in 2009. Conversely, if experts are correct, the subsidies should climb again in 2010 with the increase in oil prices.

“As we strive to develop alternatives to oil we must recognize that we are not competing on a level playing field,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance. “Massive multi-billion dollar oil subsides are a serious obstacle to the development of cleaner greener alternatives. Oil has a huge competitive advantage financed by global taxpayers.”

Next week the G20 will meet in Korea and the issue of oil subsidies is on the agenda following a commitment made at the G20 meeting in Pittsburg in September 2009. The EIA has been optimistic that they can spearhead a campaign to reduce global oil subsidies and will be presenting its case during the summit.

“Despite the IEA’s optimism that there is momentum for reducing subsidies, not one country has eliminated an oil subsidy program since signing on to the pledge in 2009,” said Baker.

In addition to the consumption subsidies, several countries continue to provide domestic producer subsidies to oil companies at alarming rates. According to a November 2010 study done by Earth Track, many countries continue to provide direct producer subsidies to oil companies including:

  • • Canada provides over US $2 billion per year to oil companies
  • • U.S. producer subsidies reached US  $52 billion in 2009
  • • European Union provided US $8 billion in subsidies to oil companies in 2009

Baker concluded, “It is time for the G20 to show leadership and reverse this practice of never ending subsidies to big oil. It is time to move beyond oil to a world with sustainable alternatives to crude oil such as biofuels and other renewable forms of energy.”

biofuels, International, Oil, Research

Buncombe County NC Kicks off AutoGas Program

Joanna Schroeder

Asheville, North Carolina has become the first paratransit program in the state to offer fleet managers AutoGas, or propane fuel. Today, the Buncombe County Commissioners Carol Peterson and Holly Jones, held an event for the local community to learn about the new alternative fuel initiative known as the Mountain Mobility’s AutoGas vehicle program.

“Mountain Mobility is so appreciative of all the people and organizations which helped to make this program possible, and would like to extend a special thanks to the French Broad River MPO and the North Carolina Department of Transportation for awarding the ARRA funds that subsidized this program,” said Denise Braine of Mountain Mobility.

The program was funded through the American Recovery and Reinvestment Act and with the funds, Mountain Mobility has converted 10 vehicles to run on propane AutoGas. The event took place at German Motor Werks, the local AutoGas fueling station and vehicle conversion center.

“The conversions made possible through this program will mean that nearly a quarter of Mountain Mobility’s 42 fleet vehicles are now running on clean and cost effective AutoGas,” Commissioner Holly Jones, points out. “This kind of momentum is critical to driving continued sustainable development at the local and state levels.”

Steve Whaley of Alliance AutoGas noted that the Autogas conversion technology allows the vehicles to run on either propane or gas. He concluded, “It is exciting to have local, government-run organizations like Mountain Mobility setting the pace for alternative fuel development in their communities.”

Company Announcement, Propane

New Controversial Biofuels Report Released

Joanna Schroeder

According to a new study released this week, the European Union (EU) plans to increase its use of biofuels over the next 10 years and it will require 69,000 square kilometers of new land causing climate change to become worse. “Driving to Destruction” was commissioned by a coalition of environmental and development NGOs and the study reports that by 2020, 90 percent of the 9.5 percent of biofuels will come from food crops.

“Biofuels are not a climate-friendly solution to our energy needs. The EU plans effectively give companies a blank cheque to continue grabbing land from the world’s poor by growing biofuels that fill our cars rather than their stomachs,” said Laura Sullivan, ActionAid’s European Policy and Campaigns Manager. “Europe’s energy policies are putting millions of people in danger and threaten Africa’s fragile food security.”

The global biofuels community is not taking the report lying down. “As a matter of record, our industry has always welcomed the debate about biofuels sustainability in large part because the alternative – more oil – is by definition unsustainable,” said Bliss Baker with the Global Renewable Fuels Alliance (GRFA). “However, NGO’s that use this debate as an opportunity to stoke fears and sell memberships in their organizations do a disservice to us all.”

According to the report, an area over twice the size of Belgium will need to be converted into biofuels plantations putting poor communities in danger if European countries use industrial biofuels to meet their renewable energy targets by 2020. Even more, the report claims that when indirect land use change is taken into account, a highly contested theory, biofuels will emit an extra 27-56 million tonnes of greenhouse gas emissions per year – the equivalent to an extra 12 to 26 million cars on Europe’s roads by 2020. Lastly, the report states that under the plans, 5 countries will be responsible for three quarters of all extra emissions. The UK, Spain, Germany, Italy, and France are projected to produce the most extra greenhouse gas emissions from biofuels.

Baker continued, “The research is chalk full of allegations disguised as facts. The report repeatedly makes statements as if they are facts such as ‘…the EU plans WILL result in the conversion of up to 69,000 sq. km of land for the use of biofuels.’ Sounds ominous but for the one word “upto.” It could be 1 square kilometer that gets converted. The point is they don’t know how many kilometres will be converted (if any) and predicting it with any degree of confidence has yet to be demonstrated anywhere.”Read More

biofuels, biomass, Indirect Land Use, International, Research

New USDA Reports Find Less Corn, More Ethanol

Cindy Zimmerman

usdaThe latest reports from the U.S. Department of Agriculture are lowering the forecast for this year’s corn crop, but raising the expected use of corn for ethanol.

Corn production is now forecast at 12.5 billion bushels, down 1 percent from the October forecast and down 4 percent from last year’s record production of 13.1 billion bushels. The reason for the decrease is lower than expected yields, especially in key producing states like Missouri and Nebraska. Record high yields are still forecast for several states including Minnesota and Wisconsin.

On the supply-demand side, USDA increased corn use for ethanol in the coming year by 100 million bushels, citing record October ethanol production and favorable ethanol producer margins. “Ethanol prices continue to track higher with corn prices, supporting returns for ethanol producers. Although small relative to domestic usage, higher ethanol exports and lower imports are also expected to add to corn use for ethanol with high sugar prices limiting the availability of ethanol from Brazil.” Corn ending stocks were lowered by 75 million bushels and exports were lowered by 50 million.

corn, Ethanol, Ethanol News, USDA

RFA Urges White House to Support Cellulosic Ethanol

Cindy Zimmerman

The Renewable Fuels Association (RFA) is urging the White House to “stay the course” on advance biofuels.

Renewable Fuels Association LogoIn a letter hand to President Obama this week, RFA President and CEO Bob Dinneen urged the Obama Administration to maintain its commitment to the commercialization of cellulosic ethanol and other advanced biofuels. The RFA letter is in response to a White House memo seeking presidential guidance on the future of the Department of Energy (DOE) loan guarantee program.

“We strongly encourage you to not only continue with the program, but to transform it so it is more accessible for cellulosic and advanced biofuel companies,” Dinneen wrote to President Obama. “In addition, we encourage you to push Congress to restore the funds taken from the program to pay for the Cash for Clunkers initiative and a bailout for states earlier this year. Restoring these funds and accelerating their distribution is one way to quickly add American jobs that cannot be outsourced.”

Going a step further, Dinneen urged the president to not only retain, but reform the current renewable energy loan guarantee program to ensure advanced biofuel technologies are given a fair chance.
“As Congress intended, the loan guarantee program established by the 2005 energy bill was meant to provide access to much-needed capital for developing and nearly commercial renewable energy technologies – both for power generation and liquid transportation fuels,” wrote Dinneen. “The markets for electricity and fuels function differently. As such, the loan guarantee program must reflect these differing real-world circumstances in determining the qualifications of various applicants. Yet, as currently structured, the program seems disproportionately focused toward power generation projects to the disadvantage of cellulosic and advanced biofuel technologies.”

Read the entire letter here.

Ethanol, Ethanol News, Government, RFA

Opponants File Lawsuit Over Ethanol Decision

Cindy Zimmerman

A coalition of food and livestock organizations has filed suit in federal court to overturn the Environmental Protection Agency’s recent decision to allow gasoline containing 15 percent ethanol (“E15”) to be sold for cars manufactured in the 2007 model year or later.

Farm and food petitioners in the suit, which was filed with the U.S. Court of Appeals for the District of Columbia Circuit, include the Grocery Manufacturers Association, the American Meat Institute, the National Council of Chain Restaurants, the National Meat Association, the National Turkey Federation, the National Chicken Council, the National Pork Producers Council, the Snack Food Association and the American Frozen Food Institute.

The Coalition objects to the EPA’s decision on the grounds that granting a “partial waiver” of the Clean Air Act allowing E15 to be used only in cars built after model year 2006 is not within the agency’s legal authority. The petitioners argue that under the Clean Air Act the EPA administrator may only grant a waiver for a new fuel additive if it “will not cause or contribute to a failure of any emission control device or system.”

The Coalition said: “In approving E15, which is compatible only with certain, later-model automobile and other types of engines, the EPA has clearly exceeded its authority under the Clean Air Act. The EPA has unlawfully interpreted the statute to achieve a particular outcome. The agency has a legal obligation to adhere to the letter and spirit of the Clean Air Act and, in this case, has failed to do so. We are confident that the Court will agree and require the EPA to reverse course.”

EPA granted a only a partial waiver for the ethanol industry to allow up to 15 percent ethanol in gasoline for 2007 model year vehicles or newer. A decision on the use of E15 in model year 2001 to 2006 vehicles will be made after EPA receives the results of additional DOE testing, which is expected to be completed some time this month.

Ethanol, Ethanol News, Government

Chicken Fat Biodiesel Plant in Danger of Closing

John Davis

A new Louisiana refinery that turns chicken fat and other greases into biodiesel is in danger of closing if Congress doesn’t hurry up and renew the $1-a-gallon federal biodiesel tax incentive.

This article from the Wall Street Journal says the Tyson Foods Inc. and Syntroleum Corp. venture is just getting ready to announce the successful opening of the Geismar, La. plant … but could soon be derailed without the tax break:

Tyson and Syntroleum say they’ve begun in recent weeks to make diesel and jet fuel from chicken fat, beef tallow and a range of greases and oils at a plant they’ve built in Geismar, La., south of Baton Rouge. The raw materials are leftovers from Tyson’s meat-processing plants and other food-processing factories and restaurants.

The Louisiana refinery has the capacity to produce 75 million gallons of fat-based fuel annually—making it tiny by oil-industry standards but among the bigger alternative-fuel plants in the U.S…

The companies contend that the fuel won’t be economically viable unless Congress restores a $1-a-gallon federal tax credit that used to go to companies that mixed alternative fuels into petroleum-based diesel. That break expired at the end of last year, when the $170 million Louisiana plant was under construction.

Had Syntroleum known Congress would let the break lapse, the company probably wouldn’t have built the plant, said Jeff Bigger, a company senior vice president.

The biodiesel tax incentive is one of several tax breaks many people are hoping will be renewed either during the lame duck Congressional session or when Congress reconvenes after the first of the year.

Biodiesel

Algae Biofuel Maker Makes Hydrogen at High Level

John Davis

Algae Biofuel Maker OriginOil, Inc. has found a way to produce hydrogen from the power of the sun at a level comparable to solar photovoltaics.

This company press release says the breakthrough could prove to be a highly scalable and renewable source of hydrogen that can come from algae production:

To achieve this breakthrough, OriginOil researchers built a pared-down version of the company’s Hydrogen Harvester™ and tested many process variables and materials. They achieved hydrogen energy corresponding to a solar energy conversion efficiency of about 12 percent continuously for several hours on a partially clouded day. The sole energy input was the Sun. By comparison, commercial solar cells achieve conversion efficiencies between six and 20 percent.

Brian Goodall, OriginOil’s CTO, said: “Our experiments clearly demonstrate that this technology can generate renewable hydrogen at rates that matter to the global economy. These early rates compare well with those of the more mature solar cell industry, with the added benefit that the fuel, hydrogen, is readily storable. This is the first renewable source for today’s $39 billion hydrogen market.”

OriginOil officials admit the in-the-field efficiency might be less than the 12 percent achieved in the research system. However, since algae stores up energy during the day, it will continue to generate hydrogen throughout the night. Also, algae production facilities using a Hydrogen Harvester could be self-sufficient for refining.

algae, Hydrogen

Arizona Petroleum Raises $2,000 for Alzheimers

According to the Tucson Regional Clean Cities Coalition Arizona Petroleum reached their goal of raising $2,000 for the Alzheimer’s Desert Southwest Chapter Memory Walk. During the month of October, Arizona Petroleum, Tucson’s largest supplier of E85 and Biodiesel in Southern Arizona, gave .5 cents of every gallon of E85 and Biodiesel sold, both bulk and retail, to the Alzheimer’s Memory Walk.

“On Saturday, November 6, 2010 I was proud to be at the Alzheimer’s Memory Walk event while Jerry Kachenko, of Arizona Petroleum, stood on the stage at the Reid Park Bandshell and presented the Desert Southwest Chapter of the Alzheimer’s Association with a check for $2,000,” noted Colleen Crowninshield, Manager, Clean Cities/Solar Partnership Programs. “We should all be very proud that we are giving back to our community by using biofuels, and I want to extend a warm thank you to Arizona Petroleum, for giving their time and dollars to this very worthwhile event.”

Other retailers who participated in the event in Arizona were:
Coolidge Chevron, 295 S. Arizona Blvd., Coolidge
C & T Alvernon & Pima, Tucson
Fastlane Chevron Ajo & I-10, Tucson
Gas City Houghton & Alvernon, Tucson
Gas City Fry Blvd., Sierra Vista
Gas City Buffalo Soldier Tr., Sierra Vista
Loma Catalina Ruthraff and La Cholla, Tucson
Loma Catalina Dove Mtn., Tucson
Pioneer Fuel 22nd & Kolb, Tucson
Quik Mart Irvington & Houghton, Tucson
Quick Pik #3 Pantano & Golf Links, Tucson
R & D Conoco Magee & Thornydale, Tucson
Super Stop Sahuarita

The Alzheimer’s Association Memory Walk® is the nation’s largest event to raise awareness and funds for Alzheimer care, support and research. This event calls on volunteers of all ages to become champions in the fight against Alzheimer’s.

Biodiesel, E85, Ethanol, Ethanol News, News

Grant to Help Turn Dirty Plastic and Rubber into Fuel

John Davis

An Ohio company has won a state grant that will help it turn dirty plastic and rubber into transportation fuel.

Akron-based Polyflow LLC, has announced it has received a $50,000 grant in development funding from the Edison Technology Assistance Grants (E-TAG) program funded by the Ohio Department of Development. Polyflow will get some help from EWI, a leading engineering and technology organization dedicated to materials joining and allied technologies:

The E-TAG program is a strategic technology acceleration program whereby for-profit Ohio companies, working in collaboration with one or more Edison Centers or Incubators, can receive small and targeted grants that will help the company overcome some hurdles that stands between them and commercial success of a technology-based product or production process. The E-TAG award will allow Polyflow a greater speed to market by validating the Polyflow product for meeting fuel specifications and helping Polyflow target specific markets.

“The assistance of the E-TAG award will allow Polyflow to assess and fine tune our material for the most viable and opportune markets,” said Polyflow Feedstock Development Manager Terry Parmelee, Jr. “We thank the Edison Welding Institute for the resources and insights that will help ensure that Polyflow commercializes swiftly and effectively.”

Polyflow officials say the timing of the grant is perfect. It will compliment Polyflow’s work so far to establish the right commercial channel and buyer the company commercializes in the near future.

Government, Miscellaneous