ACE Honors Corn Growers for Ethanol Promotion

Cindy Zimmerman

The American Coalition for Ethanol (ACE) honored corn growers for their efforts in promoting ethanol at the 23rd Annual Ethanol Conference and Trade Show in Kansas City this week. The National Corn Growers Association (NCGA) and 11 corn grower states were recognized by ACE with the “Paul Dana Marketing Vision Award” for their support in making the BYOEthanol campaign possible.

ace darrin ihnenNCGA President Darrin Ihnen, a grower from Hurley, S.D., addressed the conference on the organization’s efforts to promote ethanol and their work with ACE and other ethanol organizations to ensure ethanol supporters speak with a unified voice in Washington on issues important to the industry.

Ihnen also discussed the important issues the ethanol industry faces such as the expiration of the blenders tax credit at the end of this year, EPA delaying the approval of E15 and the Senate’s current failure to produce an energy bill that includes ethanol.

“We are disappointed that the Senate will not pass an energy bill before they recess this week, but at the same time, the bill Reid introduced did not have ethanol provisions. This will give us additional time to educate legislators on the importance of this renewable, domestically produced fuel,” said Ihnen. “The downside is that by pushing it back to September, the bill would have to pass extremely quickly as the Senate will recess in October for the 2010 elections.”

ACE also presented the South Dakota Corn Growers Association and Corn Utilization Council with the President’s Award for “principled dedication and support” of the industry.

Listen to or download my interview with Darrin Ihnen here: NCGA president Darrin Ihnen

ACE, corn, Ethanol, Ethanol News, NCGA

San Jose Becomes Top Solar Community in California

Joanna Schroeder

The California Public Utilities Commission has reported that San Jose is now the largest installer of solar power in the state of California. Today, the city’s newest and largest solar installation was unveiled that included more than 2,500 solar panels covering 44,448 square-foot parking lot. The building that is now solar powered is Power Integrations’ headquarters in the Edenvale Technology Park. Power Integrations manufacturers high-voltage integrated circuits for energy efficient power conversions.

During a special ceremony today, U.S. Congresswoman Zoe Lofgren, along with San Jose Mayor Chuck Reed, Council member Ash Kalra, and Silicon Valley Leadership Group President and CEO Carl Guardino unveiled the $3.6 million solar array. The project took six months to complete.

“Power Integrations is a great example of how Silicon Valley companies are embracing clean tech innovation,” said City of San Jose Mayor Chuck Reed. “Between the company’s own line of energy-efficient products and its expansive new solar installation, Power Integrations is playing a key role in helping San Jose achieve its Green Vision goals.”

At 600 kilowatts, the system is among the 10 largest solar facilities in Silicon Valley. The installation will fully power one of Power Integrations’ two buildings as well as all parking-lot lights at the company’s headquarters.

The solar panels are expected to cut more than 10,000 tons of greenhouse-gas emissions over the next 25 years, an amount equivalent to the emissions caused by roughly 20 million miles of car travel. In addition, the installation’s smart design covers 280 parking spots, providing shade for employees’ cars. A real-time data feed showing current and cumulative energy production from the array can be found on Power Integrations’ corporate sustainability website at www.powerint.com/solar.

“For more than a decade, Power Integrations’ EcoSmart technology has drastically reduced ‘standby’ power waste in electronic products, saving consumers and businesses more than $4 billion and preventing millions of tons of CO2 emissions,” said Balu Balakrishnan, president and CEO of Power Integrations. “As a socially responsible company, we saw an opportunity to make a profound impact on our own energy consumption by using renewable solar energy to power our operations. We are very proud of this project, which effectively takes an entire building off the grid, and will reduce our energy bills enough to pay for itself in just 12 years.”

News, Solar

Cab Co. Opens E85 Facility in Phoenix

A new public fueling facility will soon be opening in Phoenix, Arizona. AAA Yellow Cab is opening an E85 station, 1/4 mile from Sky Harbor Airport, at 3030 S. 45th St.

According to KPHO.com, tomorrow, a grand opening will be held from 10 until 11 a.m. where the first 50 customers in line between that time can fuel their flexible fuel vehicle tanks for $1.99 per gallon.

AAA Yellow Cab has 140 flexible fuel cabs on the road and thus is the reason they decided to install the 12,000 gallon tank in just 41 days. Many of these taxis are Chevy HHR vans and Dodge Caravans.

Currently, there are 28 stations in the state of Arizona carrying the clean, alternative fuel – E85.

E85, Ethanol, Ethanol News, News

RFA: EPA Overestimates ILUC Emissions

Joanna Schroeder

The Renewable Fuels Association (RFA) has sent another letter to the Environmental Protection Agency (EPA) regarding what they call errors in the calculations of biofuels’ carbon intensity under the Renewable Fuels Standard (RFS2). In the August 4th letter, RFA writes, “according to [EPA’s] own analysis, EPA grossly overestimated potential emissions from land use change (LUC) attributable to the [greenhouse gas] lifecycle of corn ethanol and other biofuels.”

The result of correcting this error, says RFA, is that it would greatly increase the greenhouse gas reduction benefits offered by ethanol under EPA’s calculations.

“Correcting this miscalculation reduces net LUC emissions (international and domestic) assigned to corn ethanol by 62% from 28.4 grams of CO2-equivalent/mega joule (g/MJ) to 10.8 g/MJ. Such a reduction in LUC emissions means overall lifecycle GHG emissions for 2022 average corn ethanol would be 38% less than baseline gasoline emissions, rather than the 21% estimate finalized by EPA.”

Regardless of RFA’s analysis, they still maintain that the inclusion of LUC impacts, particularly international impacts over which the U.S. has no control, is flawed policy and that EPA misinterpreted the intent of Congress when it passed the RFS.

In a recent blog post discussing their letter to EPA, Geoff Cooper, RFA’s Vice President of Research and Analysis, writes, “Despite the fact that real-world data and events have disputed the ILUC theory at every turn, EPA’s final rule for the RFS2 institutes a net LUC penalty (domestic and international) against corn ethanol of 30 kg CO2e/mmBTU (or 28.4 g CO2e/mega joule). This represents nearly 40% of the total GHG intensity of corn ethanol as estimated by EPA. When LUC emissions are excluded, EPA found corn ethanol from a natural gas dry mill reduces GHG emissions by 50% compared to gasoline. With LUC emissions, that benefit falls to around a 20% reduction.”

RFA says that this overestimation occurred as a result of the questionable methodological choice EPA made to isolate the LUC impacts of individual biofuels by increasing their production one at a time and holding all other biofuels at constant levels. More appropriately, the RFA notes, if EPA felt compelled by the statute to penalize biofuels for ILUC, it should have based those penalties on modeling that simultaneously increased production for all biofuels in accordance with the RFS requirements.

RFA notes that these problems are endemic of larger concerns regarding attempts to limit emissions from vehicles by unfairly penalizing biofuels.

You can read RFA’s letter to the EPA here and read Cooper’s comments regarding this issue here.

Ethanol, Ethanol News, Indirect Land Use, RFA

New York Officially Passes Bioheat Legislation

Joanna Schroeder

In a follow-up to a story written last week, New York has officially passed air quality legislation that includes a provision to ensure that only Bioheat, a blend of heating oil and biodiesel, is used with the city. The unanimous vote, 45-0, ensures that starting October 2012, all home heating and oil will contain at least 2 percent biodiesel.

The National Biodiesel Board applauded the passage of the new legislation and Shelby Neal, the organization’s state regulatory director issued the following statement.

“New York City has our heartfelt congratulations on once again demonstrating that the city is a leader in renewable energy. Already the largest municipal user of biodiesel in transportation applications, the city has now taken a progressive step towards cleaner emissions from heating the homes and buildings there.

“The biodiesel is likely to be made from many sustainable, renewable resources, including recycled cooking oil. In a city with more than 8 million people and 20 thousand restaurants within its limits, this Bioheat requirement is a golden opportunity to recycle the city’s used cooking oil into cleaner burning fuel. New York City uses more than 1 billion gallons of heating oil a year, so 2 percent biodiesel represents a 20 million gallon market for biodiesel.

“This move to Bioheat will also support green jobs and domestic energy security, and we hope New York City’s progressive actions will encourage other cities serious about greening efforts to follow suit.”

Biodiesel, Legislation, NBB

Murphy Oil Looks to Grow Biofuels Business

Joanna Schroeder

One of the country’s most touted, and failed, ethanol concepts may be sold. Last year, Hereford Biofuels, the first commercial scale plant in the country intended to operate using methane from cattle operations, went belly-up. Construction was halted when owner, Panda Energy, an energy firm based in Dallas, Texas, sold the plant to creditors earlier this year for a reported $25 million.

The reported suitor is Murphy Oil Corporation, an international oil and gas company based in El Dorado, Arkansas. Their plans to increase their stake in the biofuels market comes on the heels of a July 22, 2010 announcement that the company will be exiting the refinery business as early as first quarter of 2011. The move was approved by the Board of Directors and now their refineries in Meraux, Louisiana; Superior, Wisconsin; and Milford Haven, Wales along with the retail system in the United Kingdom are now up for sale.

In a company statement made earlier this month by President and CEO David Wood, “Murphy’s Upstream and U.S. Retail businesses have demonstrated marked growth and financial performance over the last several years. By exiting the refining business, we can fully focus our attention and resources on continuing that growth, developing a premier international upstream business and a top quartile U.S. retail franchise.”

biofuels, Ethanol, News

Dyadic Lawsuit Dismissed

Joanna Schroeder

Dyadic International has confirmed that the final resolution of the consolidated stockholder class action lawsuit, Miller v. Dyadic International, Inc. et. al, has been approved and the lawsuit dismissed with prejudice. Dyadic is a biofuels company that is focused on developing technologies to produce cellulosic ethanol from corn stover and wheat straw.

The lawsuit was originally filed in October of 2007 and asserted class action claims against its Asian subsidiaries based on allegations of misstatements and omissions by Dyadic and certain of its current and former officers and directors arising out of alleged improprieties. The company created a cash reserve in connection with the class action lawsuit that will adequately cover the cost of resolving the matter.

“We are pleased to put this matter behind us so we can continue focusing on growing our business through the ongoing sale of enzymes and the monetization of our C1 platform technology through potential licensing arrangements and other collaborations,” concluded Mark Emalfarb, President and Chief Executive Officer of Dyadic.

biofuels, Biotech, Cellulosic

ACE Update on Ethanol Blender Pumps

Cindy Zimmerman

ACE blender pumpOne year ago at the American Coalition for Ethanol (ACE) conference in Milwaukee, the BYO Ethanol campaign was launched as a joint effort between corn-producing states, ACE, and the Renewable Fuels Association with the goal of installing more blender pumps nationwide. Today that effort is more important than ever as the industry is face to face with the 10 percent blend wall. ACE members heard more about that this week during the 23rd annual Ethanol Conference and Trade Show in Kansas City as ACE Vice President for Market Development Ron Lamberty gave a little update to the membership on that effort and the importance of getting blender pumps out there.

ACE Ron Lamberty“They’re something we just have to have if we’re ever going to get to the point where customers can choose to use gasoline or ethanol in whatever blends they want,” Lamberty said. He adds that blender pumps could become very important for marketers, if EPA approves some mixed level of blending ethanol for gasoline, such as 15 percent only for certain vehicles. “If they have a blender pump, they can use any combination,” he said.

There are many incentives in place for retailers to install blender pumps, such as tax credits and help from programs like BYO Ethanol. “Right now, a lot of people are wanting to pay a part of that bill for them, so it’s a great time for petroleum marketers to put in a blender pump,” said Lamberty.

Listen to an interview with Ron Lamberty here: ACE Conference Ron Lamberty

ACE Conference Photos

ACE, Audio, blends, corn, Ethanol, Ethanol News, RFA

ACE President Stresses Positives for Ethanol Industry

Cindy Zimmerman

ACE conference Lars HersethThe president of the American Coalition for Ethanol is a great representative of this grassroots organization that was formed in 1988 – a family farmer from South Dakota who believes in the ability of agriculture to help serve the nation’s energy needs.

“We have to keep reminding ourselves how fast we’ve grown in a relatively short time and answered the call of this country for a cleaner fuel for the environment, a fuel that would make us less dependent on some areas of the world that aren’t really our friends,” Herseth said in an interview at the 23rd annual Ethanol Conference and Trade Show in Kansas City on Wednesday.

Herseth is also a former state legislator and the father of Rep. Stephanie Herseth Sandlin (D-SD), who is a strong champion for biofuels on Capitol Hill, so he knows a thing or two about politics and he’s frustrated with the current inability to grow the industry further due to the 10 percent blend wall and with distractions like indirect land use change. “We should actually get beyond that and say we don’t want to discuss this with you because you have no science to back it up,” he said.

He would rather focus on the positive impact ethanol has had on rural communities and land values. “I’m also a livestock producer, some of the livestock organizations haven’t been so happy with it,” said Herseth. “I’m a cow-calf operator yet I would never let that get in the way of supporting ethanol for what it’s done. I think it’s been terrific.”

Listen to or download my interview with Lars Herseth here: ACE Conference Lars Herseth

Check out some photos from ACE here on Flickr.

ACE, Audio, Ethanol, Ethanol News

Northeast Biodiesel Breaks Ground in Greenfield, Mass

Joanna Schroeder

Although the biodiesel industry has struggled for the past few months, in areas with state mandates the biodiesel industry is thriving. Today, Northeast Biodiesel LLC, in partnership with Co-op Power, broke ground on a 3.5 million gallon biodiesel plant to be located in Greenfield, Mass. that is expected to be operational in January 2011. The plant will use various feedstocks to produce biodiesel and home heating oil including recycled vegetable oil and other raw materials.

Once completed, the $2.5 million dollar facility, supported by more than 20 investors, will employ 13 full-time staff as well as support a myriad of indirect jobs including those contracted to pick up the recycled oil from local businesses.

According to the company’s website, their biodiesel will have a lifecycle greenhouse gas emission reduction of 80 percent as compared to diesel and gasoline emissions.

In an article in Biodiesel Magazine, Lynn Benander, chief executive officer of Co-op Power and board chairwoman for Northeast Biodiesel LLC, said of the project, “I know we’re going against the grain right now given the state of the industry without the producer tax credit. Northeast Biodiesel is a community-owned recycled oil biodiesel plant that will bring significant benefits back to our community – environmental, economic and social.”

Miscellaneous