Waste to Cellulosic Ethanol Project in Michigan

Cindy Zimmerman

Michigan Governor Jennifer Granholm recently helped launch the new American Process Inc. (API) waste-to-cellulosic ethanol clean energy project in Alpena.

API, in partnership with San Antonio’s Valero Energy Corporation, received $4 million from the Michigan bioenergy Centers of Energy Excellence (COEE) program to establish a pilot scale biorefinery at the Decorative Panels International hardwood plant in Alpena. The $4 million in COEE funding to API helped secure a U.S. Department of Energy grant for $17.9 million. The biorefinery will convert the process waste effluent from the plant into cellulosic ethanol, sodium acetate and clean, warm water. The project has potential to be replicated across the state in other biorefineries, pulp and paper mills, and food and agricultural processing plants.

API has invested $10 million in the project and estimates that replication across Michigan in existing industries alone could create annual economic value of $200 million within 10 years.

bioenergy, Cellulosic, Ethanol, Ethanol News

Ethanol Co-Product Helps Increase Ag Exports

Cindy Zimmerman

The U.S. agricultural exports picture continues to be a bright one thanks in part to more exports of the ethanol by-product dried distillers grains (DDGs).

In the latest USDA report on exports, the forecast for 2010 exports was increased to $107.5 billion, up $3 billion compared to the May estimate. Almost half of that gain was in the revised estimate for grain and feed exports – up $1.2 billion to $27.2 billion from the May forecast. Corn shipments are increased 1 million tons and $100 million, reflecting stronger shipments in recent months as demand for feed grains and feed products (especially DDGS) has been stronger than expected. “Agriculture is one of the few major sectors of the economy today that has a trade surplus, which we are now forecasting to be a little over $30 billion,” said Agriculture Secretary Tom Vilsack..

The forecast is even better for next year, up to $113 billion, very close to the record $115 in 2008, thanks to sharply higher unit values and volumes for wheat and corn, as well as increases in products like DDGs. “I think it’s an indication of the quality of what we’re producing, which I think has allowed us to aggressively market this product as sort of an offshoot of what’s taking place in the biofuels industry,” Vilsack said. “This is an untold and I think often under-appreciated aspect of our economy in terms of how productive American farmers are and how innovative we’ve become with what we grow and what we raise and how much more opportunity there is as we expand biofuel production, beginning to use other feedstocks. I think we’re just going to continue to see more and more of these kinds of opportunities, byproducts and co-products of the process being developed.”

Another reason for ethanol producers to attend the upcoming Export Exchange, sponsored by the US Grains Council and the Renewable Fuels Association, with the express purpose of getting buyers and sellers of DDGs in particular together. More than 170 international buyers of U.S. DDGS and coarse grains are scheduled to attend the event, including representatives from China, Japan, Taiwan, Korea and Vietnam – countries which have a major interest in DDGS. South Korea, Hong Kong, and Southeast Asia account for two thirds of the forecast increase in agricultural exports this year compared to May.

Distillers Grains, Ethanol, Ethanol News, RFA, USGC

Ethanol Production and Demand Soar

Cindy Zimmerman

Ethanol production reached an all-time high in June 2010, according to data released by the Energy Information Administration (EIA). Additionally, ethanol demand for June also hit a record level.

Renewable Fuels Association LogoAccording to the latest numbers, ethanol production in June was just over 854,000 barrels per day (b/d), or 1.08 billion gallons for the month, nearly 19 percent higher than June 2009. Based on the totals of the first six months for this year, US ethanol production is on target to reach 12.87 billion gallons this year.

According to the Renewable Fuels Association (RFA), ethanol demand also reached an all-time high in June of 857,000 b/d, up almost 16 percent from a year ago.

Interestingly, the monthly figures from EIA for June are higher than the weekly production averages EIA recently began reporting. According to the weekly data from EIA highlighted by RFA, June production averaged just 839,000 b/d or a difference of 15,000 b/d compared to the monthly figure released today. At 18.9 million gallons for the month, this is a rather large discrepancy. Subsequent weekly and monthly reports will be needed to determine if the discrepancy between the monthly and weekly data is a trend or just a result of the kinks being worked out of the new weekly reporting requirement.

Meanwhile, the latest weekly report from the Energy Information Administration shows that ethanol was keeping up the pace in August with a 4-week average the same as June at 854,000 b/d.

Prices are going up right along with production and demand. According to Bloomberg, the price for ethanol surpassed gasoline this week for the first time since December, up 22 percent since May, while gas is down 6.5 percent.

Ethanol, Ethanol News, RFA

Mascoma Acquires Sunopta Bioprocess

Cindy Zimmerman

sunoptaMascoma Corporation and SunOpta Inc. today announced the sale of SunOpta BioProcess Inc. (SBI) to Mascoma.

The acquisiting brings together SBI’s fiber preparation and pretreatment technology with Mascoma’s consolidated bioprocessing technology to create a company with comprehensive capabilities for converting non-food cellulose (wood chips, energy crops and organic solid waste) into ethanol and high value co-products.

mascoma_logoMascoma CEO Bill Brady says the two companies share a common vision of converting cellulosic biomass to fuel in a low-cost, sustainable way. “The combined company has extensive commercial experience, with the application of our technologies around the world, and the technology breadth to offer a complete biofuels solution. We believe the combination of Mascoma and SBI significantly advances our capabilities in the cellulosic ethanol field and positions us for a successful future.”

Mascoma, through its affiliate Frontier Renewable Resources LLC, is currently developing a commercial scale production facility in Kinross, Michigan. The facility is based on technologies developed in Mascoma’s laboratories in Lebanon, New Hampshire and operating in its 57,000 square foot demonstration facility in Rome, New York. The facility will also incorporate technologies developed by SBI from its pilot operations in Waterdown, Ontario and Brampton, Ontario.

Read more here.

Cellulosic, Ethanol, Ethanol News

SD Micro Ethanol Plant Up for Bid

Cindy Zimmerman

A prototype micro ethanol plant in South Dakota is being auctioned this month by Maas Companies of Rochester, Minn.

MaasMaas Companies is accepting sealed bids on the Genesis Ethanol I, a 2-4 million gallon-per-year micro ethanol plant located outside of Sioux Falls in Parker, South Dakota until Friday, Sept. 24. A winning bid may be awarded at that time or the top five bidders may continue a limited live auction Friday, Oct. 8 at 11 a.m. central daylight time.

Genesis Ethanol I was a prototype micro ethanol plant started in 2008 with several innovative concepts. Genesis purchased corn locally and sold its distiller grain by products locally, thereby greatly reducing transportation costs and delivering a consistent product. In addition, the facility was designed with energy saving components unique to its design in an effort to reduce energy costs. Initially the plant was to be the first in a series of similar plants throughout the region.

More information is available here.

Ethanol, Ethanol News

Florida Feedstocks for Florida Biofuels Workshop

Cindy Zimmerman

The Florida Biofuels Association, together with several other organizations and state universities, are holding a meeting this month focused on growing energy feedstocks in the Sunshine State.

“Feedstocks for Florida Biofuels – A Florida Biofuels Association Town Hall Meeting” is scheduled for Friday September 17 at Florida Farm Bureau headquarters in Gainesville. The event will include an open forum to hear from Florida farmers regarding concerns and questions pertaining to energy crops, the ABCs of profitable feedstock farming, and incentives available for the feedstock farmers. Speakers include representatives from the Florida and U.S. Departments of Agriculture and the University of Florida.

The potential for energy crops in the state was one of the topics at the recent Florida Farm to Fuel Summit. One of the presenters was Bill Vasden Jr., Chairman of the Florida Feedstock Growers Association. Vasden was interviewed by Gary Cooper with Southeast Agnet at the summit about the production and distribution of renewable energy from Florida-grown crops. “We’ve been growing feedstock crops like camelina and kenaf here in Florida for four years,” he says. As a cattle and citrus farmer, he started growing energy crops to help cut his on-farm diesel costs. “Later it became apparent that a lot of these crops can be grown here in Florida, with additional revenue streams.” They now have 2500 acres in kenaf, which is a spring biomass crop, then in the fall they rotate into camelina, which is an oilseed crop. “Camelina grown in Florida produces the highest yields in the country and can be grown in fall and winter and is very drought tolerant and cold tolerant,” said Vasden. As a bonus, it is also approved for as a by-product for animal feed.

Vasden says the market demand for these energy crops exceeds demand, so it has been very profitable for his operation. “We look to 2500 acres, without any government subsidy, to gross $2.8 million when farmed with two crops of camelina and one crop of kenaf, and those are pretty impressive figures,” he explained.

Here is a link to Vasden’s powerpoint presentation at Florida Farm to Fuel.

Biodiesel, biomass, Ethanol, Ethanol News

Company Debuts Biodiesel Hybrid Wind Turbine

John Davis

A Colorado-based wind turbine company believes it has the solution when winds are not enough to generate electricty: team the turbine up with clean-burning biodiesel.

Smartplanet.com says Hybrid Turbines Inc.’s SmartGen system will use biogas, biodiesel and natural gas to run a back-up power generation system fuel the back-up power system that will operate during the 70 percent of time when the winds don’t get the job done:

This would of course depend on the patent-pending design working and being installed throughout the country’s wind farms. According to Hybrid Turbines, the SmartGen system can be retrofitted for existing turbines, scaled between 3 and 100 kilowatts (possibly higher), and integrated into new turbine designs.

A turbo-compressor [right] located at the base of the turbine’s tower draws in ambient air, compresses it and stores it in a tank. When winds are calm, the compressed air travels skyward to the turbo-air motor* connected to the electric generator.

Nick Verini, president of Hybrid Turbines Inc., says in a statement:

If a biofuel is used then the SmartGen™ system is 100% renewable energy based (wind and/or biofuel). Even if natural gas is used the electricity produced by SmartGen™ is twice as environmentally clean as burning coal. This will be increasingly important as we move to electric vehicles with batteries charged from the grid.

Estimates are that wind power generation capacity would increase by 25 GW, the equivalent of 25 1,000 MW nuclear power plants

Biodiesel, Wind

$11 Mil in Grants for Propel Biodiesel, Ethanol Stations

John Davis

Propel Fuels, a west coast retailer of ethanol and biodiesel, has received $11 million in grants from the U.S. Department of Energy and the California Energy Commission to build and operate 75 self-serve alternative fuel stations across the state over the next two years.

This article in the Silicon Valley/San Jose Business Journal says the effort will reduce the amount of non-renewable oil used and greenhouse gases given off, while putting more people to work:

The statewide station project, or the Low Carbon Fuel Infrastructure Investment Initiative, has the potential to create more than 450 jobs, while displacing 39 million gallons of petroleum and 187,500 tons of carbon dioxide emissions each year, according to Propel.

About 7 million of funding for the project was awarded by the U.S. Department of Energy’s petroleum reduction program. Another $4 million was granted through the state of California’s Alternative and Renewable Fuel and Vehicle Technology program. California has the largest fleet of alternative fuel fleet vehicles in the country.

Propel said it will match the grant funding with $16 million in private investment to speed up the build-out of Propel’s network of fueling stations.

“This grant brings a new choice to Californians looking to do their part to reduce our nation’s dependency on imported oil and help meet the state’s emission reduction goals,” Propels chief executive officer Matt Horton added in the release. “As advanced biofuel production facilities prepare to break ground in the state, this fueling infrastructure is a critical link between California’s citizens and the next generation of low carbon fuels.”

California Energy Commission officials say this will help bring the needed next generation of biofuels to nearly half a million flex fuel vehicle owners in the Golden State.

Biodiesel, Ethanol, Ethanol News, Government, News

E85 Promotion in Waseca, MN

The Sportsman Stop at 1818 State Street North in Waseca, MN will be offering E85 Frenquent Fuel Cards beginning tomorrow, Sept. 1. The first 50 flexible fuel vehicle (FFV) owners will receive the card where, if they purchase E85 four times, they will receive $10 off their 5th E85 purchase.

Recently, Kelly Marczak, director for the American Lung Association in Minnesota’s clean fuel and vehicle technologies stated, “The State of Minnesota is serious about its stated goal to reduce its petroleum consumption. In [the first six months of the year], the state’s use of E85 in 2010 prevented more than 1,745 tons of lifecycle carbon dioxide emissions and harmful pollutants from entering our air.”

This promotion is supported by: the Waseca County Corn & Soybean Growers, Minnesota Corn Growers Association, American Lung Association in Minnesota, and members of the Minnesota Clean Air Choice team.

Minnesota is the home of 358 E85 fueling sites — this is more than any other state in the nation.

E85, Ethanol, Ethanol News, News

Ethanol Groups Dispute Petroleum Industry Claims

Cindy Zimmerman

The American Petroleum Institute (API) is using findings of a new report to try and dissuade the Environmental Protection Agency (EPA) from making a decision on the use of increased levels of ethanol in gasoline anytime in the near future.

The Sierra Research report commissioned by the national trade association that represents the oil industry found that “multiple regulatory and legal requirements remain and must be met before higher ethanol blends can be legally marketed for commercial introduction.” The report lists nine different requirements that must be met before the ethanol blend level can be increased from the current 10 to 15 percent. Those requirements include such things as a Clean Air Act waiver; registration of the fuel with EPA; changes to EPA Reformulated Gasoline regulations; and changes to EPA Gasoline Detergent Additive regulations.

Matt Hartwig with the Renewable Fuels Association agrees that those actions need to be taken before the fuel can be marketed, but disagrees that EPA should wait until they are all complete before it can approve the use of increased ethanol blends. “Those things need to be done and we’re already working on them” said Hartwig. “They can attempt to drag their feet until the cows come home but it won’t change the fact that E15 is a safe and effective fuel for vehicle use. Instead of constantly referring to the few challenges that can easily be overcome, it would be far more effective for Big Oil to work with ethanol producers to address them in a timely fashion – that is assuming they truly want to act in the best interests of American consumers.”

Growth Energy CEO Tom Buis says approval by EPA is the first step needed for the process to move forward. “In order for state laws and regulations regarding fuel specifications to be updated, the fuel must first be approved by the EPA,” said Buis. “We are not surprised that the people profiting from the status quo want to keep it that way. We have been dependent on foreign oil for 40 years- sending $300 billion a year overseas to other countries’ economies – and these delays will only perpetuate our addiction. The Growth Energy Green Jobs Waiver was accompanied by a sound body of science that overwhelmingly supports the use of E15 in existing vehicles. In fact, there has been more testing of E15 than there has been of any other fuel additive in the history of the EPA waiver process.”

API says some of the necessary requirements must occur prior to the initial sale of a new transportation fuel but some can be subsequently addressed. The period of time they estimate to be required for the completion of all of the above changes is “on the order of several years.”

Read API’s report here.

Ethanol, Ethanol News, Growth Energy, Oil, RFA