Bobbing In Petroleum

Joanna Schroeder

As the ethanol industry continues to fight for its subsidies before they expire at the end of the year, and the biodiesel industry has been fighting to survive without the $1 tax credit, the U.S. Senate did not even hesitate to preserve the oil industry’s subsidies. In addition, the Senate has yet to pass any comprehensive energy policy that would ensure our country achieves energy independence goals and reduces its greenhouse gas emissions.

In response to these issues as well as in frustration over the fact the U.S. Senate has not passed any climate change or oil spill response legislation, Oil Change International, a non-profit organization that specializes in campaign to expose the true cost of fossil fuels, has launched a new campaign to “Clean Up the Senate“.  The new campaign details 46 U.S. Republican and Democratic Senators who are “aligned” with the oil industry and portrays them bobbing in a sea of petroleum. You can view information about these senators including political campaign contributions and voting history on key legislation.

“We hope Americans are motivated to clean up the gusher of oil money that is currently covering these Senators,” said Steve Kretzmann, Oil Change Executive Director. “This campaign exposes these Senators and lets people send them a message that it’s time they clean up their act. It’s time for a Separation of Oil and State.”

In addition to the Clean Up the Senate Campaign and its corresponding website, last week Oil Change International also launched an additional website called DirtyEnergyMoney. This site was developed to support the organization’s campaign to end oil and coal company campaign contributions. The site is supported by more than a dozen organizations including Greenpeace, Public Citizen, MoveOn, 350.org and True Majority.

“The United States is paying a heavy price for its dangerous dependence on fossil fuels,” said John Sellers, a Director of Oil Change International.  “The Gulf Coast disaster is but the latest wake-up call. It’s time the Senate moved us forward instead of backwards on energy, to a clean, renewable future that boosts jobs, protects the planet and secures America.”

biofuels, Legislation, Oil

Navy Looks to 50% Renewables, Marines Want it Locally

John Davis

The U.S. Navy is looking to have half of its total fuel use come renewable energy sources by 2020, while the Marine Corps wants those sources, particularly the biofuels, to come from sources near its bases.

The New York Times reports that Navy Secretary Ray Mabus wants to dramatically cut the Navy and Marine Corps’ dependence on fossil fuels, especially from sources that might not be so friendly:

“We use in the Navy and Marine Corps almost 1 percent of the energy that America uses,” Mr. Mabus said. “If we can get energy from different places and from different sources, you can flip the line from ‘Field of Dreams’ — ‘If the Navy comes, they will build it.’ If we provide the market, then I think you’ll begin to see the infrastructure being built.”

“Within 10 years, the United States Navy will get one half of all its energy needs, both afloat and onshore, from non-fossil fuel sources,” he added. “America and the Navy rely too much on fossil fuels. It makes the military, in this case our Navy and Marine Corps, far too vulnerable to some sort of disruption.”

Part of that conversion to renewable sources started last year when the Navy launched its first electric hybrid ship, the Makin Island (pictured right) and more recently when the Navy conducted tests on an F/A-18, dubbed a “Green Hornet,” earlier this year (see my post from April 26, 2010).

Meanwhile, Maj. Gen. Carl Jensen, the commander of Marine Corps installations on the East Coast from Florida to Virginia, told ENCToday.com that he believes local farmers will be key to those sources of biofuels:

Jensen said he would like to buy locally produced biofuels to help reach the Marines reach their energy targets. The military is already using some biofuels. In fiscal year 2009, Camp Lejeune used 50,034 gallons of biodiesel and Cherry Point used 43,339 gallons.

Jensen said he’s had discussions with the Defense Energy Supply Center, which provides fuel to the military, about buying more biofuels. Encouraging their production could encourage farming and help curb development potentially harmful to the military, he said.

“We would like to make sure that frankly, skyscrapers aren’t built right next to our bases, or underneath our aviation military training routes,” he said. “It just makes sense.”

biofuels, Government

Iowa Flooding Will Not Significantly Affect Corn Harvest

Joanna Schroeder

Last week,USDA announced as part of their August numbers that they believe corn farmers will achieve a record crop again this year. The expectation for harvest is 13.37 billion bushels, a 2 percent increase from the final 2009 harvest numbers.

However, the report, that reports a month behind, did not account for the widespread rain and flooding in the state of Iowa. Just yesterday, state officials announced that there are now 32 counties that have been declared “disasters” and are eligible for financial support from the federal government.

I reached out to the Iowa Corn Growers Association to learn more about how the rains would affect Iowa’s farmers and if they felt there could be a strain on the commodity with the growing use of corn for ethanol.

First, Iowa Corn said that despite the challenges facing Iowa farmers there is still optimism for a strong harvest. “We have farmers across the state who have battled with water this spring and summer to varying degrees. They are relatively optimistic about what the corn crop looks like on a statewide average. We don’t have any specific numbers on the crop, but the last report from WASDE said that Iowa’s corn crop was 65-75% good to excellent.”

The association noted that their farmers are confident that the crops that are doing well will carry the weight for those whose fields are under water. And the USDA has also predicted that they expect the per bushel per acre numbers to break records this year as well. They also stressed our country will produce more than enough corn for all markets, of which ethanol and livestock are the drivers in Iowa.

Iowa corn concluded by reiterating that American farmers can do it all. “We are sad to see so many weather issues affecting farmers across the state but we know that farmers battle weather of some kind or another each year and continue to do what they do best – produce food, fuel, feed, and fiber for the world.”

corn, Ethanol, News

Iowa Gov Chet Culver Celebrates 1st Biomass Harvest

Joanna Schroeder

“The future belongs to those who believe in the beauty of dreams. And this has been a dream for many, many years,” began Iowa Governor Chet Culver during his presentation to kick off the largest global biomass harvesting pilot project in Emmetsburg, Iowa.

Project Liberty, the dream of Jeff Broin, CEO of POET and his company, is less than two years away from becoming the first commercial scale cellulosic ethanol plant using corn stover and corn cobs. This fall, nearly 85 local farmers will be harvesting and storing nearly 60,000 tons of biomass in an effort to refine the harvesting, storage and logistics for converting biomass into ethanol.

Culver noted that many people didn’t believe that this project could happen, but he has been a supporter since he took office in 2007. Now, he is proud to show the world that no where else is this type of project happening so quickly.

“I would like to thank farmers for embracing this opportunity for our country and embracing this opportunity for our state,” said Culver.

Broin added that to date, area farmers have already received $100,000 in incentive payments to establish the new harvest system on their farm. Part of the goal of this pilot project is to ensure that farmers who harvest biomass are able to do so at a profit as well as in a sustainable way. The optimal biomass harvest of any acre of land will vary between 0-25 percent depending on soil health.

I was on hand today along with several hundred local farmers and members of the community as POET unveiled the details of their biomass harvest program. Part of this program will be the completion of a new biomass storage facility in time for the harvest. The 22-acre site will have the capacity to house 23,000 tons of biomass bales at any given time.

Broin concluded, “As biomass harvesting for cellulosic ethanol grows, America’s reliance on foreign oil will wane and be replaced by a new reliance, this time on rural communities with our own borders. The American farmer will provide food, feed and fuel for the country at an unheard of rate.”

You can see pictures from the event today by clicking here.

Cellulosic, Ethanol, Ethanol News, POET

Energy Dept. Extends Loan Application Deadline

John Davis

Renewable energy projects will have a little more time to apply for federal government loan guarantees.

Biomass Magazine reports the U.S. Department of Energy has moved the deadline for the July 2009 energy efficiency, renewable energy and advanced transmission and distribution technologies solicitations six weeks later to October 5th of this year:

The newly-created Round 8, Part I of the application stage is intended to give companies additional time to develop and submit Part I applications to apply for a loan guarantee under Section 1705, provided by the American Recovery and Reinvestment Act.

The Part II application deadline remains Dec. 31. The Aug. 24 application deadline for Round 7 remains the same.

“The Department is committed to bringing as many commercial renewable projects online as possible to help us meet our clean energy goals and generate more jobs,” said energy secretary Steven Chu. “By extending the time applicants can file, we will be able to support additional projects that diversify the country’s clean energy mix and strengthen our economy.”

This comes on the heels of Congress’ decision to cut $1.5 billion from the DOE’s $26.1 billion DOE funding pool for renewable energy projects to cover teacher salaries and Medicaid (see Joanna’s post from August 11). The article also points out that just a year ago, Congress and the Obama Administration raided the renewable energy loan guarantee program to the tune of $2 billion to fund the “Cash for Clunkers” program to help stimulate new auto sales. Senate Majority Leader Harry Reid has promised that Congress will restore the recently cut $1.5 billion from the DOE Loan Guarantee Program.

biofuels, Government, Legislation

Who Are the Next Biofuels IPOs?

John Davis

On the heels of their great story yesterday on the investment in algal-biodiesel players PetroAlgae and Solazyme (not to mention Joanna’s piece on Gevo preparing for a $150 million IPO), our friends over at Biofuels Digest have put together a list of the top 10 most likely next IPOs in the biofuels sector. The list includes many Domestic Fuel regulars, such as Solazyme, REG and Imperium:

The biofuels companies coming forward are early-to-middle stage: their shared goal is expansion capital, and though they are seen by many as a value-add play for agriculture, or as a technology play, these are best understood as above-ground oil fields, and as a proxy for oil exploration. The difference: the risk for these ventures is less in the geology than in the biology. It is not a question of finding and extracting reserves, as much as growing and extracting them.

1. Solazyme. Already secured investment from Keating Capital, which expressly invests in companies within 18 months of an IPO event. Gaining revenues from military contracts. Has a raft of strategic partners that will prove attractive.

2. LS9. If Amyris goes well, LS9 might well follow at a suitable interval. Their demonstration facility in Florida is easily expandable to 11 Mgy, which would supply them with a revenue stream. Also has attractive strategic partners in the likes of Procter & Gamble. Has a magic bug that, like Amyris’, converts sugar to diesel – though based on e.coli rather than yeast and may have a wider range of near-term molecules – and thereby a story in chemicals – that it can produce.

3. Sapphire Energy.If Solazyme goes, and goes well, Sapphire could follow. They have a big capital raise for their vertically integrated company that intends to be an owner-operator of more than 1 billion gallons in capacity by 2025. The company has scant revenue, and is building out its demonstration plant, but when its operations in New Mexicom are complete, there may be reasons to turn to the public markets for more dollars.

4. REG. The Renewable Energy Group wanted to IPO a few years back, but withdrew. Since then, its been consolidating biodiesel assets at “popular prices”, and has a distribution arm. If biodiesel gets its story back with the US mandate taking hold, REG will likely need fresh equity to balance off any increasing debt and fund its expansion. Not for the near-term, but keep an eye out.Read More

Biodiesel, biofuels

NBB, Marketers Welcome Biodiesel Heating Bill Signing

John Davis

New York City Mayor Michael Bloomberg has made it official, signing a bill that will require all diesel heating oil in the city contain at least 2 percent biodiesel:

“The final bill before me today is Introductory Number 194-A … [which] will significantly reduce pollution, promote the use of alternative fuels, create new ‘green’ jobs and vastly improve air quality throughout the City.

“Promoting the use of cleaner burning heating fuels is one of fourteen air quality initiatives from PlaNYC 2030 and I am pleased to say that the legislation before me today will do just that. Introductory Number 194-A requires that by 2012, the sulfur content of Number 4 heating oils be limited to no more than 1,500 parts per million and all heating oils used in New York City contain at least two percent biodiesel.”

The move won the praise of the National Biodiesel Board and local biodiesel makers and marketers, Sprague Energy and METRO Terminals:

“New York City is already the nation’s largest municipal user of biodiesel. We applaud the Mayor and City Council for building on that legacy by adopting a universal biodiesel requirement that will further improve air quality in the city,” said Shelby Neal, NBB’s director of state governmental affairs. “I would especially like to thank Councilman Gennaro, who has been a tireless advocate for this and other important environmental issues. His vision for a cleaner burning, green, and sustainable heating fuel is being realized.”

“As one of New York’s original biodiesel and Bioheat suppliers, we know firsthand what a positive impact the fuels have on the lives of New Yorkers,” said Steven J. Levy, managing director of Sprague Energy. “This landmark legislation is another huge step in reducing air pollution in the city, yet just another building block in cleaning the air we breathe for healthier, longer lives.”

“More than 70 years ago, my grandmother started a heating oil business here because she thought coal represented the past,” said Paul Pullo, who owns METRO Terminals along with his brother, Gene. “With biodiesel, America’s only commercially available advanced biofuel, we will take our business into the next generation again.”

Biodiesel

“Man Caves” To Roll On Up In Propane Trucks

Joanna Schroeder

One of the longest running and top rated Do-It-Yourself (DIY) shows on cable TV, “Man Caves,” will soon be rolling on up to transform a room or garage into a man’s dream room in a ROUSH liquid propane-powered E-350. The show, which airs on DIY Network, is in its seventh season and features a virtual rolling hardware store replete with construction materials in a truck.

“We are looking forward to having a ‘Man Caves’-size rolling tool box for the biggest season yet of ‘Man Caves.’ This thing is functional and just amazing,” said an enthusiastic Cameron, co-host of the show, upon seeing the new propane-powered van for the first time.

Thanks to Knapheide and Sortimo, there are a variety of organizational systems which allow the hosts, licensed contractor Jason Cameron and former NFL great Tony “The Goose” Siragusa, to quickly and efficiently complete any project at hand. The Knapheide Utility Vehicle will be mounted on the back of the ROUSH propane E-350 and will include a number of Sortimo S-, M-, and T-BOXXES to organize the tools and small parts it carries, many with adjustable shelves and dividers. The cargo area has retention poles to hold large parts and sheet material, as well as a bed slide to assist in loading heavy equipment or parts. This allows the “Man Caves” crew to be most efficient from the truck to the work site.

“Jack Roush has cars racing on TV nearly every weekend, but this will mark the first time that a ROUSH liquid propane-powered van will have a starring role on television,” said Joe Thompson, executive vice-president and general manager of ROUSH. “ ‘Man Caves’ is a program that has a very dedicated audience and it’s going to be exciting to have a ROUSH vehicle play a role in the space transformations they have planned for this season.”

Chris Weiss, Knapheide vice-president of engineering concluded, “Building the ‘Man Caves’ work van is a perfect opportunity to show off the organizational capabilities of the ROUSH/Knapheide Utility Vehicle. Our partnership with ROUSH helps us provide efficient work solutions for our contractor customers with the advantage of using green technology like liquid propane.”

Fleet, News, Propane

ACE Elects New Board Members

Cindy Zimmerman

The American Coalition for Ethanol (ACE) has elected three new members to its Board of Directors, expanding grassroots and independent ethanol representation to the national advocacy association.

ACEThe new members are: David Kolsrud of Mid-Missouri Energy in Malta Bend, Mo.; Dave Sovereign representing Golden Grain Energy in Mason City, Iowa; and John Skelley, General Manager of Pinal Energy in Maricopa, Arizona.

Five other Board members were re-elected:
• Lars Herseth, representing Herseth Ranch of Houghton, SD – who currently serves as president of ACE
• Owen Jones, representing 4 Seasons Cooperative of Britton, SD – currently serves as treasurer for ACE
• Duane Kristensen, representing Chief Ethanol of Hastings, NE
• Randy Knecht, representing CHS Inc., of Houghton, SD
• Scott Parsley of Madison, SD representing East River Electric Cooperative

“Now more than ever it is important to have a strong grassroots base of support for ethanol, and our Board of Directors helps ACE give these grassroots advocates a voice,” said Brian Jennings, Executive Vice President of ACE.

ACE, Ethanol, Ethanol News

Range Fuels Makes Cellulosic Methanol

Cindy Zimmerman

Colorado-based Range Fuels reports the successful production of cellulosic methanol using non-food biomass at a Georgia biofuels plant in the first phase of an operation to ultimately produce next generation ethanol.

Range FuelsAccording to a Range Fuels’ press release, this first phase uses heat, pressure, and steam to convert woody biomass and grasses into a synthesis gas composed of hydrogen and carbon monoxide. The syngas is then passed over a proprietary catalyst to produce mixed alcohols that are separated and processed to yield a variety of low-carbon biofuels.

“We are ecstatic to be producing cellulosic methanol from our Soperton Plant, and are on track to begin production of cellulosic ethanol in the third quarter of this year,” said David Aldous, Range Fuels’ President and CEO. The cellulosic methanol produced from Phase 1 will be used to produce biodiesel for transportation fuel markets. It may also be used in heating applications, as a fuel additive in gasoline-powered motor vehicles, or to power fuel cells.

Range Fuels plans to expand the capacity of the plant to 60 million gallons of cellulosic biofuels annually with construction to begin next summer. The Soperton, Georgia plant is permitted to produce 100 million gallons of ethanol and methanol each year.

biomass, Cellulosic, Ethanol, Ethanol News