Ethanol and Ag Groups Fight to Keep Incentives

Cindy Zimmerman

A proposal by Growth Energy to phase out ethanol tax incentives has brought the fight out in the two older ethanol advocacy organizations, along with several agricultural groups.

Saying that it is too late in the congressional session to switch horses, the American Coalition for Ethanol and the Renewable Fuels Association have pulled rank on the younger Growth Energy group and lined up with powerhouse ag groups American Farm Bureau Federation, National Corn Growers Association (NCGA) and National Sorghum Producers to storm Capitol Hill in favor of renewing the Volumetric Ethanol Excise Tax Credit (VEETC) for another five years.

Hundreds of news stories, blog posts, and tweets have been written since yesterday focusing on the division in the industry and some lawmakers are starting to take sides on the issue. Corn belt loyalists like Sen. Charles Grassley (R-IA) are committed to fighting for a long term extension, but House Ag Committee Chairman Collin Peterson told corn growers in Washington this week that they will be lucky to get a year-long extension. The House Ways and Means Committee is reportedly looking at cutting the tax credit from 45 cents to 36 cents.

NCGA ThuneMembers of the National Corn Growers Association meeting for their annual Corn Congress in the nation’s capitol made the VEETC extension a priority when they talked to their senators and representatives. NCGA President Darrin Ihnen says corn growers believe extension of the VEETC is vital to the industry. “As our board and voting delegates visited with members of Congress this week it was apparent that time is short and extension is in the best interests of the corn industry,” said Ihnen.

Senator John Thune (R-SD) pictured receiving the NCGA President’s Award from Ihnen during the Corn Congress events, had no specific public comments about support or lack thereof for the VEETC extension. “I look forward to continuing to work together on the Renewable Fuel Standard, supporting the move to E15, and other initiatives important to corn producers,” Thune said in a prepared press release. Read More

ACE, Ethanol, Ethanol News, NCGA, politics, RFA

Pickens Says Natural Gas Only Diesel Replacement; Biodiesel Says Wha….?

John Davis

T. Boone Pickens is making a new pitch for natural gas to be the fuel of the future, especially in America’s big rigs. However, while declaring natural gas as the only replacement for petroleum diesel, the billionaire oilman seems to forget that biodiesel is already a great source to replace petroleum-based products… without having to convert any engines.

In the latest video from Pickens, he goes “back to the whiteboard” to make the case that out of the 21 million gallons of petroleum used each day in the U.S., 13 million gallons come from imports, and 5 million comes from the “bad guys” at OPEC. He says that 5 million is the real problem, as we are funding both sides of the war on terror with those purchases. Pickens proposes that if the 8 million 18-wheelers in this country were to run on natural gas, that would take care of 2.5 million gallons of OPEC oil each day, effectively cutting the oil cartel in half. He goes on to say that conversion could be done in just seven years.

But while Pickens makes a good case, pointing out how much cheaper natural gas would be than petroleum diesel (about one-fourth the cost) and how much cleaner burning it is, I think he steps in it a bit when saying that “natural gas is the only resource we have that’s going to replace diesel.” Biodiesel will run in any diesel engine, especially the big rigs, without having to change anything on the engines.

He does say that various biofuels, including biodiesel and ethanol, are also good for American cars. But I hope that not everyone takes his “only resource to replace diesel” comment too much to heart. Biodiesel is ready now.

Biodiesel, Natural Gas

US’s First Enzymatic Biodiesel Plant to be Unveiled

John Davis

Industrial enzymes producer Novozymes and Piedmont Biofuels of North Carolina will be unveiling new technology at the first enzymatic biodiesel pilot plant in the U.S. tomorrow.

The technology will turn low quality waste grease into high quality biodiesel:

The enzymatic biodiesel pilot plant was developed in partnership with the Biofuels Center of North Carolina, and the Chatham County Economic Development Corporation. The pilot plant, located at Piedmont’s site in Pittsboro, NC, is expected to initially produce 12,600 gallons of biodiesel annually.

“This new process of using enzymes to produce biodiesel will increase yields, decrease waste, and allows the producer to use lower cost feedstocks,” said Greg Austic of Piedmont Biofuels. “This groundbreaking technology will create more valuable co-products, and will allow existing producers to increase their biodiesel output.”

“We are glad to be partnering with our North Carolina neighbor Piedmont Biofuels to develop this promising enzymatic route to biodiesel. With continued research, we believe this technology could contribute to North Carolina and U.S. biofuels targets within a couple years,” said Hans Christian Holm, global marketing manager for Novozymes.

Biodiesel

Freshwater Wind Summit Planned for Cleveland

John Davis

Looks like LeBron James left Cleveland just a little too early, because he could have gone to the Infocast’s Freshwater Wind 2010 Summit, July 19-21.

Well, at least YOU won’t have to worry about him sitting in front of you at the Wyndham Cleveland at Playhouse Square and blocking your view of the event for talking about how to best develop offshore wind power in the Great Lakes:

. Meet the developers, equipment manufacturers, legislators, financiers and other key stakeholders shaping this new industry
. Learn how to position yourself to be a key player in manufacturing and supply
. Identify the development opportunities and technical risks associated with each opportunity
. Develop your profitable market entry strategy

Wind is the fastest-growing industry in North America, and the Great Lakes region offers some of the most reliable and strongest wind resources in the
world. This has led to proposed billion dollar projects and 100MW wind farms, some of the biggest ever in North America. Infocast’s Freshwater Wind 2010: Building the Successful Business Case for Offshore Wind Development in the Great Lakes will provide business solutions that will illuminate both the safe passages and the harboring shoals that could sink otherwise solid developments. The Summit is the place for major players to gather and advance offshore wind development throughout the Great Lakes region. Meet the leading developers, equipment manufacturers, legislators, financiers and key stakeholders as they carve out this new industry and build an economic hub for this nascent industry.

Keynote speakers will include US Senator Sherrod Brown (D-OH) and Ohio Governor Ted Strickland. You can find more information at the Infocast website.

Wind

Indirect Land Use Uncertainty

Chuck Zimmerman

Adam LiskaI conducted a number of interviews with presenters at the recent Corn Utilization and Technology Conference and many of them were about biofuels, especially ethanol. Here’s one I thought you’d be interested in.

The Land Use Conundrum . . . Corn, An Advanced Biofuel? That was the title of one of the sessions that was moderated by Jamey Cline, NCGA. One of his panelists was Adam Liska, University of Nebraska-Lincoln. His remarks were on “Uncertainty in Indirect Land Use Change Emissions from Biofuels.” Adam has focused his work on the life cycle efficiency of producing ethanol.

Adam says that there has been increased agricultural production worldwide due to increased demand and it seems like attributing some of that to increased biofuels production makes sense. However, he says that quantifying the emissions related to agricultural production due to biofuels use is very uncertain because it’s done “as a projection into the future.” The bottom line is we don’t know what will happen in the future. He says “it’s nearly impossible.” He says that there are estimates for corn ethanol but they get smaller and smaller with more research and information. He says that they’ve started to do some research on the indirect effects of gasoline production and figure they’re roughly equivalent to that of ethanol. He also points to the impact of changes in livestock production as a result of higher grain prices and says it may have more impact than land use changes. Seems like there is a huge amount of variability in how you look at the future when it comes to biofuels production and especially corn ethanol.

Adam Liska Interview
Audio, CUTC, Ethanol, Ethanol News, Indirect Land Use, NCGA

Solar Power for Cell Phones

Joanna Schroeder

Looking for a new way to charge your cell phone? Then look no further than the sun. Solio has released an improved universal Solar Charger for all electronic devices, including your phone, that stores power for up to one year and never overcharges. This device sounds perfect for places that are lacking outlets, like airports, airplanes and restaurants three of the places your phone battery loves to die.

So how does it work? You charge it up for free with a little help from the sun, and then when you need power for your MP3 player, GPS or phone, you simply plug the solar charger into your electronic equipment using one of the multiple “tips” that you switch out. The charger is compatible with over 3,200 devices and stores in its own sleek case.

For those of you who live in the Iowa where it never seems to stop raining this year, no worries. The solar charger has a back-up plan. It can be charged a USB port or wall charger, both included. The price for this nifty gadget is around $99.

Miscellaneous, Solar, technology

CBO Report Fails to Look at the Larger Picture

Joanna Schroeder

The Congressional Budget Office (CBO) has released a new report, “Using Biofuels Tax Credits to Achieve Energy and Environmental Policy Goals,” that according to the Renewable Fuels Association (RFA), takes the issue of ethanol tax incentives out of context. The report provides no comparison to other technologies or types of biofuels against the destruction that goes hand in hand with fossil fuel production, cites RFA. The association plans to post a detailed analysis on its blog.

RFA President Bob Dinneen expanded on the issues his organization has taken with the report. “It may seem penny-wise, but would be pound-foolish to dismiss the benefits of current biofuels in light of the havoc wrought by our dependence on fossil fuels,”

“Analyzing American energy policy cannot occur in a vacuum. To effectively address the energy, environmental and economic problems caused by our addiction to oil, we need to take a holistic approach,” continued Dinneen. All comprehensive analyses demonstrate that ethanol provides a real world, cost effective tool to reduce dependence on oil and create domestic jobs. Additionally, as CBO rightly notes, ethanol also reduces carbon emissions compared to gasoline.”

Also missing from the CBO report, says RFA, is the discussion about the continual evolution of ethanol production. Biotechnology Letters recently published a study that demonstrated that ethanol production has reduced water use by 20 percent and overall energy use by 28 percent in less than 12 years. During this same time period, ethanol plants have increased yields and produce valuable co-products.

However, what RFA felt was done correctly in the report was the exclusion by CBO of international indirect land use change (ILUC) and its estimates of CO2 reduction costs. This theory has been highly debated for several years and is under fire due to the scientific inability to prove it’s assertions.

“There is no renewable technology available today that can match ethanol’s ability to reduce oil use and create jobs, all while emitting fewer climate changing gases than gasoline,” said Dinneen. “New biofuel technologies, like cellulosic ethanol, promise to provide even greater benefits. Unfortunately, it appears CBO has chosen to take a narrow, time constrained look at the issue and has failed to
consider the much larger picture.”

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Ethanol, Ethanol News, RFA

Growth Energy Calls for National Ethanol Policy Shift

Cindy Zimmerman

Ethanol organization Growth Energy is proposing a redirection and eventual phasing out of government support for ethanol in return for increasing infrastructure investment that would level the playing field with fossil fuels and give consumers true freedom to choose their fuel.

Growth EnergySpecifically, the “Fueling Freedom” plan calls for funds currently going to the oil industry as an incentive for blending ethanol into gasoline (the VEETC) to be redirected to provide backing for the build out of distribution infrastructure for ethanol – such as tax credits for retailers to install 200,000 blender pumps and federal backing of ethanol pipelines – and requiring that all automobiles sold in the U.S. be flex-fuel vehicles – as many as 120 million.

“We often hear, if Brazil can do it, why can’t we?” said Growth Energy CEO Tom Buis during a press conference this morning. “Well, Brazil has a built-out infrastructure. We need to do the same.”

Listen to the entire press conference here: Growth Energy Press Conference

POET CEO Jeff Broin, Growth Energy Co-Chairman, believes the time has come to transition to an open market where consumers can choose their fuel. “With a blender pump in every neighborhood and a Flex Fuel Vehicle in every garage, ethanol can compete,” Broin said. He notes that the U.S. ethanol industry produces more energy for America’s motorists than Saudi Arabia and that ethanol is already competitive with gasoline, averaging 50 to 80 cents below the cost of gasoline this year.

Growth Energy advisory board member and former congressman Jim Nussle says they certainly support the Volumetric Ethanol Excise Tax Credit or VEETC, otherwise known as the blenders tax credit, but it may be time to try something different. “If you always do what you always did, you’ll always get what you always got,” Nussle said. “If we shift the emphasis from VEETC to building out infrastructure, we will reap benefits.” The organization plans to talk with policy makers over the coming weeks in the hopes of selling the idea and possibly including it in an energy bill. “The policy makers are begging us for creativity now,” said Nussle.

However, the plan might be a hard sell on Capitol Hill without the backing of the entire ethanol industry, and that looks unlikely at the moment. The American Coalition for Ethanol (ACE), American Farm Bureau Federation (AFBF), the National Corn Growers Association (NCGA), the National Sorghum Producers, and the Renewable Fuels Association (RFA) together issued a press release following the Growth Energy announcement reaffirming support for the extension of current ethanol tax incentives through 2015. ACE Executive Vice President Brian Jennings says it’s too late to consider alternatives this year. “We have talked to policymakers about alternatives to VEETC. The universal response we have received from our champions on Capitol Hill is that while some of those alternatives are interesting, those alternatives cannot possibly be adopted at this stage in the legislative calendar, with just about 30 days remaining until Congress adjourns for the mid-term elections,” said Jennnings.

Read comments from ACE, AFBF, NCGA, NSP, and RFA here.

ACE, corn, Ethanol, Growth Energy, NCGA, RFA, sorghum

E-85 Fuelfinder iPhone App

Chuck Zimmerman

The Renewable Fuels Association just announced a new iPhone app – E-85 Fuelfinder (opens iTunes) to help flex-fuel drivers access the latest, most accurately geo-coded E85 stations throughout the United States. Can you say, E85 fuel? There’s an app for that! Hurry to get yours since it won’t be free for long.

This application will also work on the iTouch and iPad. The RFA will sponsor a free download for the first 500 users.

The E85 FuelFinder allows iPhone and iPad users all over the country to map out E85 (85% ethanol, 15% gasoline) stations most accessible to them, no matter their current location or destination. With the database embedded in the iPhone itself, this application is useful, even if the user is in a no-service zone. In addition, users have the ability to add a station as a “favorite” for quick and easy accessibility, view or update the price per gallon of E85 fuel at specific locations, access driving directions through Google maps, and directly contact a specific station via telephone. The cost of the application is $1.99, which you can download here, and is also available on the App Store. Read More

E85, Ethanol, Ethanol News, RFA

BP to Acquire Verenium’s Cellulosic Ethanol Business

Cindy Zimmerman

BPAs BP struggles to stop the oil gushing out into the Gulf of Mexico, an announcement comes today that the company is making a major investment in cellulosic ethanol, as BP Biofuels North America is acquiring Verenium’s cellulosic biofuels business – which includes facilities in Jennings, LA and San Diego, CA – for $98.3 million.

BP and Verenium have been working together to accelerate the development and commercialization of cellulosic ethanol since August of 2008, in a partnership that has been extended on a month-to-month basis several times this year. Under the agreements, BP was funding Verenium’s cellulosic ethanol program as they continued negotiations for a longer-term collaboration.

Under the new agreement, Verenium will retain its commercial enzyme business, including its biofuels enzymes products, and have the right to develop its own lignocellulosic enzyme program. Verenium will also retain select R&D capabilities, as well as rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through this agreement.

VereniumVerenium President and CEO Carlos A. Riva says the agreement “should give both companies the flexibility to pursue the growth opportunities in the respective businesses and achieve goals in the near-term. As a result of this transaction, Verenium will have the resources to grow our commercial enzyme business while maintaining strategic access to the emerging cellulosic ethanol market in a manner that better fits our resources.”

“This acquisition demonstrates BP’s intent to be a leader in the cellulosic biofuels industry in the U.S. and positions us as one of the few global companies with an integrated end-to-end capability, from R&D through commercialization to distribution and blending,” said Philip New, CEO of BP Biofuels. “Our partnership with Verenium has been very fruitful, enabling the companies to develop a leading cellulosic ethanol technology package, driven forward by the skills and expertise of people from both companies. By acquiring Verenium’s cellulosic biofuels technologies, BP Biofuels should be well placed to accelerate the delivery of low cost, low carbon, sustainable biofuels, at scale.”

BP will become the sole investor in Vercipia Biofuels, a 50-50 joint venture formed by BP and Verenium in February 2009, and will independently manage all of Vercipia’s activities going forward. Similarly, Galaxy Biofuels, a 50-50 joint development company owned by BP and Verenium, will be owned 100% by BP. This transaction is expected to close in the third quarter of 2010.

Verenium is hosting a press conference on the agreement this morning.

Cellulosic, Ethanol, Ethanol News, Oil