REG to Re-Open Seneca, Illinois Biodiesel Plant

John Davis

Iowa-based Renewable Energy Group (REG) will hold a grand re-opening of its Seneca, Illinois biodiesel plant. The biodiesel maker and marketer became the operator of the 60 million-gallon-a-year biodiesel and glycerin facility, taking over from Nova Biosource Fuels.

REG will have Congresswoman Deborah Halvorson on hand to make remarks on the start-up of the plant and to “[c]elebrate the start of biodiesel production at the 60 million gallon per year biodiesel facility, recognize industry partners, welcome 38 full-time employees and increase awareness of biodiesel’s benefits for Illinois’ environment, economy and energy independence.”

The REG Seneca facility has three side-by-side 20 mgy biodiesel process units, a technical grade glycerin refining facility, raw material and finished product storage as well as rail car and truck unloading and loading with the potential for barge transportation that had been idled for more than a year.

REG now wholly-owns five biodiesel production businesses and markets biodiesel in 49 states.

Biodiesel

New Blender Pumps in Kansas

Cindy Zimmerman

Growth Energy and Pro Ag Marketing have joined forces to install two new blender pumps in Kirwin and Kensington, Kan. The Kirwin Blender pump station is branded Pro Ag Marketing and the Kensington facility is named Corner Corral Cenex.

“Selling ethanol blended fuels in our communities makes sense, as there is great synergy between what we do in producing the crops that are used in making ethanol and putting that ethanol fuel right back into our cars and trucks that we use every day,” said James Jirak, General Manager of Pro Ag Marketing and station owner. “In a way, we are supporting our own local economy as we create demand for our crops by using ethanol.”

On Friday, Kansas ethanol producer Prairie Horizon, headquartered in Phillipsburg, will sponsor a grand opening event at the Corner Corral Cenex featuring industry representatives, state lawmakers and officials. The station will offer special pricing for ethanol-blended fuel, with E85 for 85 cents per gallon and 25 cents discounts on E10, E20 and E30. “Blender pump infrastructure is important to us as an ethanol producer because it further promotes ethanol as America’s fuel,” said Mike Erhart, General Manager of Prairie Horizon.

The new pumps installed will bring the total number of blender pumps in the state to 14. The Kansas Corn Commission also provided funding for the blender pumps.

blends, E85, Ethanol, Growth Energy

Biodiesel Product Can Clean Up Oil on Beaches

Cindy Zimmerman

Biodiesel producers could be utilized to help clean up oil the coastline after the disaster in the Gulf of Mexico.

biodiesel oil spillAccording to the National Biodiesel Board, methyl esters – a chemical yielded in biodiesel production – can be formulated into a biobased solvent that is federally listed as a shoreline washing agent for oil spill clean-up. An effort is underway to encourage the use of this product to remediate oiled shorelines, particularly the more sensitive marsh habitats.

“The chemical dispersants used in the Gulf have been criticized because all they do is dissolve the oil back into the water, which actually makes it more toxic to sea life,” said Randall Von Wedel, founder and principal biochemist of CytoCulture International, a company that pioneered the method in the 1990s. “A biobased solvent does the opposite of a dispersant. It removes the oil from impacted vegetation and shoreline and floats it into the water for easy recovery.”

The process involves crews spraying the methyl esters from shallow draft boats onto oil-covered marsh vegetation or small beaches normally unreachable by land. After the biobased solvent is applied, a gentle “rain” of seawater rinses the dissolved petroleum mixture off the plants and shoreline for recovery, using small mechanical skimmers. The mixture can be recycled.

Von Wedel recently visited the Gulf of Mexico, where his team submitted documentation on his product, branded “CytoSol Biosolvent.” He says a BP contractor and the U.S. Coast Guard have submitted a proposal to use the process to enhance a mechanical beach cleaning technology. The methyl ester product was licensed by the State of California in 1997 and used to clean oiled ships and response vessels during the San Francisco Bay oil spill of 2007.

See a demonstration of how it works here:

Biodiesel, NBB, Oil

DOE’s Loan Guarantee Program to Receive Cuts

Joanna Schroeder

At a time when the alternative energy industry is calling for the Department of Energy (DOE) to follow through on loan guarantees, the U.S. House of Representatives is attempting to pass a Senate bill that would cut the program’s budget by $1.5 billion. According the the Solar Energy Industries Association (SEIA), this move is part of a $26.1 billion package that is reallocating funds to cover other struggling areas including Medicaid and teacher salaries.

This program came to the public’s attention last year when it was used to fund the $2 billion Cash for Clunkers Program – a program that ran out of funds within days of being launched.

According to an article in Solar Industry News, SEIA is furious over the proposed cuts even though the program is already significantly over budget. The association estimates that to date, there are 81 renewable energy project applications that total an estimated $31 billion, yet there is only $25 billion left in funding, not calculating any additional program cuts.

Al Gore has entered the fray publishing a quote on his website about his outrage. “These rescissions put into jeopardy the green jobs that the administration has touted as part of our clean-energy future and put us further behind the rest of the world.”

The alternative energy industry has been struggling for the past several years due to both dwindling private investment funds, lack of cohesive policy that would ensure long-term markets, and the lack of loans from the financial sector. The loan guarantee program is one of the last sources of monies for companies to tap in to as they struggle to develop and bring to market new technologies.

In a letter to Speaker Nancy Pelosi dated August 6th and endorsed by the American Wind Power Association, Biomass Power Association, Geothermal Energy Association, and the National Hydropower Association, the groups wrote that the cuts significantly undermine the DOE Loan Guarantee Program.

“Failure to act on the Treasury Grant Program and other tax incentives or to restore funding to the DOE Loan Guarantee Program will jeopardize the renewable energy industries’ efforts to develop clean electric generation and create tens of thousands of jobs. We urge you to work with the Administration and the Senate to reverse these cuts and restore funding for the renewable energy loan guarantee program,” the letter concluded.

Electricity, Energy, politics, Solar

Cobalt Signs Fluor to Design Biobutanol Plants

Cindy Zimmerman

Cobalt Technologies has signed an agreement with engineering firm Fluor Corporation to help design production plants to commercialize biobutanol.

Under the agreement, Fluor will provide engineering consulting services and a broad range of EPCM services for Cobalt’s demonstration and commercial-scale butanol production plants.

“We are very pleased to have Fluor as our strategic partner to help us design the most efficient, lowest cost system for producing our biobutanol,” said Rick Wilson, Ph.D., chief executive officer of Cobalt Technologies. “Fluor’s experience in designing and executing large projects, particularly refining projects, is unmatched in the world. We originally asked Fluor to provide an impartial analysis of our biobutanol production technology. Now, to have them sign a strategic agreement with us, truly validates our vision.”

Cobalt’s technology converts non-food feedstock, such as forest waste and mill residues, into biobutanol. Earlier this year, the company demonstrated the conversion of beetle-killed lodgepole pine into a low-carbon, sustainable biofuel and chemical, which is currently being tested in engines by Colorado State University’s Engines and Energy Conversion Laboratory. In January, Cobalt got the endorsement of California Governor Arnold Schwarzenegger at the launching of a pilot plant in that state. Schwarzenegger said biobutanol will meet California’s Low Carbon Fuels Standard (LCFS), as the company says its technology reduces lifecycle greenhouse gas emissions by up to 90% compared to gasoline.

biobutanol

Lallemand Embarks on New Yeast Project

Joanna Schroeder

Lallemand Ethanol Technology has announced an exclusive partnership with Xylogenics, a bioengineering company, to develop and commercialize genetically enhanced yeasts for first generation ethanol production. Lallemand is one of the leading yeast providers for the ethanol industry.

“Xylogenics is thrilled to be partnering with Lallemand, a global leader in fermentation technology and we are looking forward to bringing our exciting technology to the market,” said Mike Neibler, Xylogenics CEO. “We are confident that our combined strengths will allow us to move quickly to commercialization and make a positive impact on the fuel ethanol industry economics.”

The goal of the program is to use Xylogenics expertise in yeast genomics in cooperation with Lallemand, to engineer a new class of industrial ethanol yeast strains. These enhanced strains will increase fermentation yield, reduce fermentation costs and potentially increase ethanol plant fermentation capacity compared with current commercial strains. This program demonstrates that there is still room to develop technology to improve ethanol production while at the same time decreasing per gallon costs.

Lallemand will focus on process development, manufacturing and commercialization of the new yeast and Xylogenics will receive patent license fees and royalty payments.

Bill Nankervis, President of Lallemand Specialties, Inc. and General Manager of Lallemand Ethanol Technology said of the partnership, “We have been working with Xylogenics for some time and this agreement signals that we are confident that Xylogenics technology offers significant benefits for the fuel ethanol industry. Xylogenics and Lallemand are committed to delivering a yeast that will set a new fermentation performance standard and deliver improved profitability to our customers.”

Ethanol, Ethanol News

SunOpta Reports Strong Second Quarter Sales

Joanna Schroeder

SunOpta, a Canadian-based company that is developing a sugar substitute using ethanol, has reported strong revenues for second quarter. According to company financials, they brought in $235.9 million this quarter, as compared to $216.1 million in second quarter of 2009, a 9.2 percent increase. During this same time frame, SunOpta reported a significant increase in net income on a GAAP bases of $20.5 million or $0.31 per diluted common share versus $1.8 million or $0.03 per diluted common share for the second quarter 2009.

SunOpta BioProcess Inc. (SBI), a subsidiary of SunOpta, is working in the biofuels space to develop additional revenue generating co-products for the cellulosic ethanol industry. Unique to the industry SBI and its partners on working technology that will produce food grade xylitol, a healthy sugar substitute, as well as produce fuel-grade cellulosic ethanol.

Steve Bromley, President and Chief Executive Officer of SunOpta commented, “We are very pleased with our second quarter and year to date results which are indicative of numerous initiatives which have been implemented, centered on improving operating results within our core business segments while at the same time improving our return on assets employed. We continue to focus on these core operating processes and believe that the initiatives are having the expected positive effect on our results.”

Cellulosic, Ethanol

Denton, TX to Have E85 and Biodiesel

According to Pagusus News, the City of Denton Fleet Services Division in Denton, Texas has been awarded a $599,860 grant to install E85 and Biodiesel. The award is part of American Recovery and Reinvestment Act (ARRA) funds by the North Texas Council of Governments (NCTCOG).

The City of Denton will construct and operate a Fuel Island at 1251 South Mayhill Rd. and will carry E85, B20, unleaded, and diesel fuels to fuel 37 alternative fuel vehicles and 18 hybrid city fleet vehicles.

“Because many air quality issues are intricately linked to energy consumption, strategies for increasing energy efficiency often have the dual benefit of reducing operational costs while simultaneously improving air quality,” said Denton Mayor Mark Burroughs. “This Alternative Fuel Station is just the latest initiative taken by the City to continue to do what we can improve our air quality and sustain our environment.”

The new fueling island is slated to open in September 2010.

Biodiesel, E85, Ethanol, Ethanol News, News

Gevo Buys Ethanol Plant for Isobutanol

Cindy Zimmerman

gevoDenver-based chemical and biofuels company Gevo is buying a Minnesota ethanol plant to produce isobutanol.

The company will acquire Agri-Energy’s ethanol production facility in Luverne, Minnesota and will begin mechanical retrofitting of the plant upon closing. Isobutanol production is expected to begin by the first quarter of 2012, but in the meantime, the facility will continue to produce ethanol. Company officials say plant will provide 18 million gallons per year of production capacity for chemicals and fuels.

“This transaction is another important step in achieving our goal of bringing commercial volumes of renewable isobutanol to the market as soon as possible,” said Dr. Patrick Gruber, CEO of Gevo. “The Luverne plant is a very well run facility with a strong operating team. It is a great place to begin our commercialization effort. We expect the facility will be the first among many and want it to be a model project for the future.”

Gevo has developed a proprietary process designed to fit into current ethanol production facilities. The process also enables the production of isobutanol from numerous renewable feedstocks including corn, wheat, sorghum, barley, sugar cane and cellulosic feedstocks when biomass conversion becomes commercially available. Gevo’s integrated fermentation technology (GIFT™) platform consists of two components: a yeast biocatalyst and a separations technology unit that bolts into existing ethanol plants.

“Since its founding in 1998, Agri-Energy has been dedicated to advancing the technology and best practices of the ethanol industry,” said Agri-Energy founding member and Co-op Coordinator David Kolsrud. “We see biobutanol as the next logical step in the industry’s development. We believe isobutanol can be sold into many markets and has product attributes that make it a compelling product for current ethanol producers.”

Read more here.

biobutanol, Ethanol, Ethanol News

Green Fuel Biodiesel Finds Green Party Opposition

John Davis

A political party that claims to back environmentally friendly causes has inexplicably come out against biodiesel, even though the feedstock for the green fuel would actually remove waste from a landfill.

The SF Weekly blog says San Francisco’s Green Party has come out against a proposal to make biodfiesel in the city:

The Examiner reported this morning that a facility that renders bones and fat from slaughtered animals into oil is moving to upgrade its facilities to make biodiesel from animal parts, as well as from used cooking oil from local restaurants. The facility, owned by Darling International, is located in the city’s Backlands industrial area.

While the proposal has the backing of officials at the Port of San Francisco, which runs the Backlands, the San Francisco Green Party is loudly opposing the project. The proposed expansion was also targeted by a lawsuit last year filed by the Bayview Hunters Point Community Advocates.

Eric Brooks, chairman of the Green Party’s sustainability working group, told SF Weekly the idea that biodiesel is environmentally superior to traditional fuels is nonsense.

“Biofuel has got this good image, even with a lot of environmentalists,” Brooks said. “And biofuel is not good.”

I think we really get to the heart of his opposition when we look at his dietary habits:

Said Brooks, “I’m a vegan, and animal-rights person. The first thing that caught my attention was, ‘Wow, we’re going to make fuel out of animals. That can’t be good.'”

No, you’re wrong Mr. Brooks. It CAN be good. Using what would fill up the sewers and landfills as a feedstock for a renewable energy source that actually burns much cleaner than its fossil-fuel cousin is one of those win-win-win situations … unless you’re crazy or dumb … or maybe both.

Biodiesel