Renderer Acquires Biodiesel Operation

John Davis

A large rendering company based in Texas has acquired another renderer that also produces biodiesel.

Darling International Inc. has moved to pick up Kentucky-based Griffin Industries Inc. This article from Biodiesel Magazine says the $840 million deal includes Griffin’s 12 rendering plants and one biodiesel production facility in Butler, Kentucky:

“Our combined companies will make us the leading independent renderer, bakery products recycler, used cooking oil recycler and grease trap maintenance provider in the United States,” said Darling Chairman and CEO Randall Stuewe. “Specifically, the combination makes sense because it provides for a more diversified supply of raw material, the leading position in bakery recycling business, completion of Darling’s national footprint, increased feedstock supply for our potential green diesel venture, and the ability to transfer best practices between two industry leaders.”

During a conference call to discuss the merger, Stuewe specifically spoke about how the acquisition will benefit Darling’s green diesel project. “Our combination effectively grows our biofuel feedstock availability and improves our capabilities to serve our green diesel venture previously announced with Valero,” he said.

The green diesel project was initially announced by Darling in September 2009. At that time, the company said it was seeking to form a joint venture with a subsidiary of Valero Energy Corp. to develop a 135 MMgy renewable diesel facility adjacent to an existing Valero refinery. As announced in 2009, the facility would convert waste grease supplied by Darling into renewable diesel. Darling and Valero also announced the two companies are jointly seeking a loan guarantee from the U.S. DOE for the proposed project.

The Darling green diesel project with Valero is awaiting the U.S. Department of Energy’s approval. The Griffin-Darling merger should be complete by the middle of next month.

Biodiesel

Project Liberty Featured on IPTV

Joanna Schroeder

As the corn harvest is winding down through the Midwest, Project Liberty is just ramping up on its collection of light corn stover and corn cobs. This fall is the first major cellulosic feedstock harvest for the biorefinery that is expected to be in full production sometime in the first half of 2012. Recently, Project Liberty was highlighted during “Market to Market” on Iowa Public Television.

Once Project Liberty is successfully up and running, POET hopes to produce 3.5 billion gallons of cellulosic ethanol by 2022. As specified in the Renewable Fuels Standard (RFS2), the country needs to use 36 billion gallons of biofuels by 2022 with a minimum of 16 billion gallons coming from advanced biofuels and/or cellulosic ethanol. While the cellulosic numbers have not been met this year and are not expected to be met in 2011, things should rapidly change as cellulosic producers, such as POET, ramp up to commercial scale production levels.

Mike Roth, POET’s Director of Biomass stated in the piece, “It’s a brand new industry within ethanol, which is relatively new, being about 20 years old. We still call ethanol a very immature industry. There is still a lot to learn and a lot of efficiencies to be gained. And this is adding a whole new component to it that really changes the game.”

Ultimately the technology developed by POET is designed to be “bolted-on” to current corn-ethanol facilities, eliminating the need to build new biorefineries to meet the country’s biofuels demands.

You can follow Project Liberty’s progress here.

Cellulosic, corn, Ethanol, POET

What’s Next for Alternative Energy?

Joanna Schroeder

Many reports in the past year have come out and determined that alternative energy such as wind and solar will have a major impact by 2030. However, in a new report released today, the Boston Consulting Group (BCG) says that the impact could happen sooner than others predict. “What’s Next for Alternative Energy?” examines seven influential and promising alternative energy technologies including advanced biofuels, electric vehicles (EVs), concentrated solar power (CSP), solar photovoltaic (PV), onshore and offshore wind, and clean coal through carbon capture and sequestration (CCS).

The success of each alt energy was determined based on three key issues:

  • • Can it achieve cost competitiveness with conventional energy by 2020 and be economically viable without subsidies?
  • • Can it overcome barriers to rapid adoption once cost competitive?
  • • Can it reach penetration levels by 2025 that disrupt the status quo?

The report contains many key findings but several of note. In particular, as costs rapidly decrease for the production of advanced biofuels, CSP and solar PV, they will become cost competitive within the next five to ten years. In addition, onshore wind power will see steady adoption and continued growth but still faces a barrier with energy storage limitations and cost. Conversely the report determined that offshore wind will continue to struggle to move beyond subsidy-driven growth.

Other interesting findings include the conclusion that EVs will see steady adoption and will become economically feasible by 2020, and clean coal through CCS will have very slow adoption and will not be viable for a decade or more.

“There is no question that conventional energy sources will constitute the bulk of the world’s energy for at least the next couple of decades,” said Balu Balagopal, a Houston-based senior partner at BCG and a coauthor of the report. “But a few of these green-energy technologies will make their presence felt very likely within the next few years.”Their costs are falling quickly and significantly, pushing them closer to where they can compete on price—without subsidies—against fossil-fuel-based sources.”

Balagopal continued by explaining that as they become more cost-competitive, adoption will be constrained more by barriers such as the need to develop infrastructure. “However, we believe these barriers will likely prove surmountable,” concluded Balagopal.

biofuels, Electric Vehicles, Research, Solar, Wind

Ethanol, Biodiesel Trading Through Cloud Computing

John Davis

Traders of ethanol and biodiesel have a new website to exchange the green fuels.

This article from Ethanol Producer Magazine says the online trading platform from U.S. Biofuels Exchange, www.us-bx.com, uses “cloud computing” and requires no software for purchase, downloading or installation to post, buy, sell and make offers on biofuels for sale or biofuels wanted:

“We offer biofuels producers, brokers, blenders, distributors, importers, exporters and marketers the ability to anonymously buy and sell ethanol and biodiesel as well as the ability to make, receive and choose between multiple offers on listings,” said James Kaufman, US-BX vice president.

The project took longer than originally thought to complete, Miller said. Beta testing on the system was conducted the summer of 2008 with the goal of launching that fall. The delay has allowed US-BX to make sure everything was working perfectly. “The last thing you want to do is tell everybody you are the eBay of biofuels and there’s 20 different bugs the first time they use it,” he said.

Having a web-based system moves biofuels trading from small regional deals to much greater possibilities. For example, it will help connect producers with overseas buyers, particularly in China. “This opens up the capacity and availability across the country and the world,” he said.

The article says US-BX has already signed up more than a dozen companies since opening for business at the end of October. The site is offering free trades through January 1st.

Biodiesel, Ethanol, Ethanol News, News

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