Export Exchange Focuses on Ethanol By-Product

Cindy Zimmerman

usgcThe upcoming Export Exchange 2010 is shaping up to be a must-attend event for anyone involved in the production of ethanol who also produces the co-product dried distillers grains with solubles (DDGS), which is becoming a major export commodity from the United States.

The Export Exchange, sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council (USGC), features an array of international leaders in ag commerce, including Dr. Bob Thompson with the National Center for Food and Agricultural Policy and Gary Blumenthal, president and CEO of World Perspectives Inc.

Dr. Thompson is scheduled to deliver the keynote address on the first day of the conference to provide perspective and insight on the world supply and demand situation will give attendees a better understanding of the world market. Blumenthal’s remarks during the second day luncheon will focus specifically on the growing global demand for U.S. DDGS. “As long as global population continues to grow, the demand for meat, milk and eggs will increase, and subsequently the demand for livestock and thus for DDGS will climb as well,” Blumenthal says.

Other speakers at the event will include Jim Allwood of Informa Economics, Paul Bingham with IHS Global, RFA president Bob Dinneen and Dr. Erick Erickson with USGC.

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. The Export Exchange will be held Oct. 6-8, 2010, at the Hyatt Regency McCormick Place Hotel in Chicago. Registration is available on-line with a $100 discount for registrations received before September 4.

Distillers Grains, Ethanol, Ethanol News, Exports, RFA, USGC

Shell & Cosan Partner on $12 Billon Ethanol Project

Joanna Schroeder

Brazil-based Cosan S.A. has announced a partnership with Shell to form a $12 billion joint venture for the production and commercialization of ethanol and power from sugarcane. According to company sources, the venture, which must receive regulatory approval, would create the 3rd largest ethanol producer in the world, manufacturing 440 million gallons of ethanol per year, and result in more than 4,500 global retail stations selling ethanol blends.

“While there is still plenty of integration planning to do before we launch the proposed joint venture, this is an important milestone in our effort to create one of the world’s most competitive sustainable biofuels companies,” said Rubens Ometto Silveira Mello, Cosan’s Chairman of the Board and non-executive Chairman-elect of the proposed joint venture.

As part of this partnership, Shell will contribute its 16 percent equity interest in Silicon Valley-based advanced biofuels company Codexis, Inc. They will also offer up its equity interest in Canadian celluosic company, Iogen Energy.

“The proposed joint venture is set to pool our complementary businesses, enhance our growth prospects in ethanol production globally and support our growth platform for our retail and commercial fuels businesses in Brazil,” said Mark Williams, Shell Downstream Director.  “Over the next 20 years, sustainable biofuels are one of the most realistic commercial solutions to reduce CO2 emissions from transport.”

But what may be most interesting about this venture, is that Shell and Cosan are competitors, both selling ethanol to consumers via retail stations. Could this pave the way for more oil-to-oil industry ventures?

Brazil, Cellulosic, Ethanol, Ethanol News

Gators Study Termites for Cellulosic Ethanol

Cindy Zimmerman

The University of Florida is continuing its research into the use of termite enzymes to help make cellulosic ethanol commercially viable.

As we reported last year, researchers at UF have been working on genetic sequencing to harness the insects’ ability to churn wood into fuel. Now they report that they have isolated two enzymes that termites use to break up lignin, which is the tough nut to crack when it comes to producing ethanol from cellulosic material such as woody biomass. The material is normally exposed to heat and steam or caustic acids and bases to break down the lignin barrier around the sugar molecules, which adds to the cost of the process. However, the enzymes found in termite salivary tissues may be able to accomplish the same task, and at room temperature.

“Once we figure out the best way to integrate this sort of enzyme into the process, it could drop the cost of producing cellulosic ethanol significantly,” said UF entomologist Mike Scharf, who led the research.

The research was a collaboration between UF/IFAS and the biotechnology company Chesapeake-PERL Inc. of Savage, Maryland. The work was funded by the U.S. Department of Energy and The Consortium for Plant Biotechnology Research Inc.

Cellulosic, Ethanol, Ethanol News, Research

The Relationship Between Biomass Harvesting and Soil

Joanna Schroeder

As the cellulosic industry gets closer to bringing cellulosic ethanol to market, there have been some concerns regarding how biomass harvesting will affect soil health and yields. These very issues were discussed by Dr. Stuart Birrell a professor at Iowa State University, whom with his team, have been studying soil sustainability as it relates to biomass harvesting.

His latest research has been in partnership with POET’s Biomass division, who is now in the midst of the largest biomass harvesting of light corn stover and corn cobs in the world. Birrell notes that to determine how much biomass a farmer can remove from his field without having adverse effects, it is important to the farmer to understand the health of his soil.

Birrell said during Project Liberty’s BIomass Harvest Kickoff, that there is a lot of variability in fields. In some fields, a farmer won’t be able to remove much, if any biomass whereas in other fields, he may remove more. On average, POET is asking for 1 ton from each field, which averages out to around 20-25 percent of the total biomass. However this could change in the future as bushels per acre increases. In fact, seed companies are predicting that within the next 15 years, corn harvests will double and this feat will be achieved without putting any additional land into production.

Birrell also noted that biomass harvesting may encourage some farmers to move to no-till techniques, which help reduce the amount of carbon released from the soil.

So ultimately, how will a farmer know how much biomass he can remove from his field? With some new technology that Birrell’s team is working on – variable rate removal machines. As a farmer is harvesting his biomass, the machine will automatically adjust how much biomass is removed based on certain soil health characteristics. This will ensure that soil health is not jeopardize by removing too much biomass.

biomass, Cellulosic, corn, Ethanol, POET, Video

Soybean Board-sponsored Tractor Pull Set for this Weekend

John Davis

The United Soybean Board (USB) and the National Tractor Pullers Association (NTPA) have teamed up for a tractor pull this Friday and Saturday, Aug. 27 & 28, at the Jaycee’s Cole County Fairgrounds. Some of the tractors involved in the pull will be using biodiesel, as will much of the support equipment. The video below is from last year’s event in Jeff City.

Todd Gibson, the director of the USB and a soybean farmer from Western Missouri’s Carroll County, says this will be his first professional tractor pull he’s attended, and he’s satisfied to leave his own equipment back home. “I’ll let the big boys take care of it.”

The pullers, many of whom are associated with agriculture, will be available for the public to meet and talk to about the performance of soy biodiesel.

NOTE: This updated version of this story changes the part about the tractors in the competition using biodiesel. While some of the tractors MAY use biodiesel, they’re not REQUIRED to do so. Much of the support equipment will still use soybean-based biodiesel in their operations.

Biodiesel, Soybeans

Purdue Study Advocates Variable Ethanol Tax Credit Rate

Cindy Zimmerman

A new study from Purdue University finds that a variable rate for the ethanol blenders tax credit could cost the government less and provide more security for producers than current fixed rates.

The study, by Purdue agricultural economist Wally Tyner, concludes that a variable rate would insulate producers from risk because as oil and ethanol prices drop, the subsidy for producers would increase. The government would save money because the rate would go down when oil prices are high.

The Volumetric Ethanol Excise Tax Credit (VEETC), which currently pays blenders a fixed rate of 45 cents per gallon of ethanol, will expire at the end of the year. Congress will have to decide whether to create a new fixed rate, implement a variable rate or go with no subsidy at all.

Tyner said his study, which was published in the October issue of the journal Energy Policy, shows that a variable rate would be the most beneficial since it still lowers risk for producers and could entice new cellulosic ethanol production. “We could see ethanol plants close if the subsidy isn’t renewed in some form,” Tyner said.

Under a variable rate, there would be no tax credit for blenders at $90 per barrel of oil. The subsidy would kick in at 17.5 cents per gallon when oil is at $80 and increase 17.5 cents for every $10 decrease in oil prices.

However, Tyner noted that the study’s findings are irrelevant if the Environmental Protection Agency does not increase the amount of ethanol that can be blended with gasoline from 10 percent to 15 percent. He said without that increase, the United States is at the ethanol blend wall, the point at which growth in ethanol production has to stop because the maximum amount possible is being purchased and used by consumers. The EPA is expected to make a decision on the blending limit this fall.

Ethanol, Ethanol News

Jasper Alternate Fuels Adds Propane

Joanna Schroeder

Jasper Alternate Fuels, a division of Jasper Engines & Transmissions, has signed an agreement with Icom North America to install and service their JTG propane liquid-injection fuel system on commercial fleet vehicles. Jasper added the new technology to its line-up due to the increasing market demand for propane fueled vehicles.

“Jasper has more than 40 highly-skilled installation centers across the U.S. to perform either liquid propane gas or compressed natural gas conversions on commercial vehicles,” said Ed Zoglman, Jasper Alternate Fuels division manager.

According to the company, Icom’s liquid-injection systems can be installed on virtually any gasoline vehicle with multi-point injection. Research has shown that as compared to conventional fuels, propane lowers emissions and provides an increase in fuel economy, drivability and overall performance. In part these benefits are achieved because propane is less expensive.

Today, the technology has not been approved for use in California and so Icom is working with the Environmental Protection Agency (EPA) to obtain certification and once that is achieved, they will pursue the same certification with the California Air Resources Board.

“Jasper Alternate Fuels is well-respected throughout the propane industry as a leading conversion source for propane and CNG powered engines,” said Ralph Perpetuini, CEO of Icom North America. “As interest in propane as an alternative fuel continues to grow, it will lead to increased business for both of our companies and enable the further expansion of the propane vehicle industry in the USA.”

News, Propane

Biodiesel Company Lands California Energy Grant

John Davis

A California-based biodiesel company has won a nearly $900 thousand grant from that state’s Energy Commission.

Biodiesel Industries “ARIES© Bioenergy Project” is a multi-year project using algae to produce biodiesel in an integrated energy system monitored by the ARIES platform. ARIES, which stands for Automated Real-time, Remote, Integrated Energy System, was developed with Aerojet to incorporate advanced automation control capabilities:

ARIES© is a highly automated, transportable biodiesel production unit with the capability to be controlled from a remote location. These features ensure reliable process control and optimal production yields in a sustainable system that can be readily and widely deployed. Under this grant, the system will be adapted to fully integrate algaculture, anaerobic digestion of waste products and self-generated combined heat and power. This unique approach will enable the production of biodiesel to be self-sustainable, produce excess renewable energy and substantially reduce greenhouse gases.

The work will be done at Naval Base Ventura County at Port Hueneme, California.

Biodiesel, Government

Biofuel, Biotech Companies Sequence Jatropha Genome

John Davis

A company that breeds better seeds for biofuels has teamed up with a biotech company to sequence the jatropha genome … a plant touted as the possible future of biofuels feedstocks.

Officials at SG Biofuels have announced that they and Life Technologies Corporation have completed sequencing the Jatropha curcas genome to 100x coverage, using the SOLiD™ 4.0 System by Life Technologies:

The sequence significantly accelerates the identification of key traits for the oilseed-producing crop and advances its development as a high yielding, low-cost source for next generation biofuel.

Working in strategic alliance with Life Technologies, SG Biofuels will use the sequence to generate a high quality Jatropha reference genome. The genome will be compared to sequences generated from SG Biofuels’ germplasm library of more than 6,000 unique Jatropha genotypes – the largest and most diverse collection of Jatropha germplasm in the world – to identify molecular markers and trait genes to accelerate development of elite cultivars with vastly superior yields and profitability. This work will also advance the introduction of transgenic plants with further improved traits.

“The value of a Jatropha reference genome is enhanced significantly by having a diverse collection of plant material for comparison,” said Kirk Haney, President and Chief Executive Officer of SG Biofuels. “The sequence adds a powerful new tool to our development platform, allowing us to rapidly unlock the true potential of Jatropha as the most profitable and sustainable biofuel feedstock.”

“Working with SG Biofuels to sequence the Jatropha genome is an important part of our broader synthetic biology strategy to provide technologies for the development of next generation renewable energy,” said Wendy Jozsi, Director of Synthetic Biology at Life Technologies. “There is significant opportunity to use advanced molecular techniques in the optimization of plant-based biofuels, especially Jatropha, for increased yields and a faster development cycle, ultimately leading to new sources of energy.”

The non-edible jatropha is native to Central America and grown on marginal lands, providing a fuel source that does not compete with the food supply or the land to grow that food supply.

biofuels, Biotech

KL Energy & Petrobras Partner on Bagasse Project

Joanna Schroeder

KL Energy Corporation and Brazil-based Petrobras have announced a new joint development agreement to optimize KL Energy’s cellulosic ethanol process technology for the conversion of sugarcane bagasse feedstock to ethanol. As a component of this partnership, Petrobras will invest $11 million to adapt KL Energy’s demonstration facility to use bagasse. The money will also be dedicated to validating the company’s optimized process.

In addition, the technology will be integrated into one of Petrobras’ Brazilian sugarcane mills and is scheduled to go online sometime in 2013. Once the plant is operational, it will produce approximately 15 million liters per year.

Miguel Rossetto, CEO of Petrobras Biocombustivel, said, “Petrobras views cellulosic ethanol as a very promising technology to substantially increase the ethanol output by some 40% without increasing the planted area output and further improve the carbon footprint of its sugarcane mills. This agreement with KLE will considerably accelerate this development effort and we are optimistic about the commercial potential of the optimized technology platform.”

The initial agreement is for the two companies to work together for 18 months and provides a mutually exclusive agreement to jointly develop cellulosic ethanol from bagasse. The agreement also gives Petrobras the option of securing a technology license for the use of KL Energy’s technology within the Petrobras Group.

“Brazil is the global leader in the production of affordable biofuels and biomass, and we believe that bagasse is a perfect feedstock for our process. KLE plans to be at the forefront of the emerging cellulosic ethanol market in Brazil,” said Peter Gross, President and CEO of KL Energy Corporation. “We are very excited about this opportunity and we can think of no better partner for this endeavor than Petrobras, a company globally recognized for its technological competence, social and environmental responsibility and its investments in clean energies.”

This partnership marks yet another American company to partner with a Brazlian-based company with the intention of developing biofuels.

Brazil, Cellulosic, Ethanol, Ethanol News