RFA E-15 Ad

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

Kerry Proposes New Biodiesel Tax Break Renewal Route

John Davis

The renewal of the $1-a-gallon biodiesel tax credit seems to have been left in the doldrums as the U.S. Senate went to August recess without agreement on the number of amendments to the Small Business Bill, which contained a renewal of the incentive.

But Biodiesel Magazine reports that a whole new bill, “The Clean Energy Technology Leadership Act of 2010,” introduced by Sen. John Kerry of Massachusetts, could provide a new path for restoration of the biodiesel tax incentive:

Kerry’s bill will extend the excise tax credit for biodiesel and renewable diesel retroactively for 2010 and through 2012, according to a statement by Kerry’s office on the content of the bill. “While we continue to fight to bring comprehensive energy legislation to the floor of the United States Senate, it’s essential that we take action to start moving in the right direction,” said Kerry. “Providing incentives for clean energy production will drive our economy forward and take us one step closer to reducing our carbon emissions and ending our dependence on foreign oil.”

Also included in the bill are provisions to include algae-based fuels in the cellulosic biofuel tax credit, provide $3.5 billion more in clean renewable energy bonds, and a number of other energy efficiency-based incentives.

I don’t want to sound pessimistic, but we have heard this story before. Lets see if Senate leadership will allow this to go through.

Biodiesel, Government, Legislation

Ethanol Companies Post Strong 2nd Quarter Profits

Joanna Schroeder

Several companies that rely on ethanol as a part of their business have reported strong financial results for the 2nd Quarter. According to The Andersons earning reports, the company’s net income for the 2nd Quarter surpassed the $25 million mark, almost $10 million more than what was reported during the same quarter in 2009. The company attributes much of the gain to their grain and ethanol group which boasted a record $43 million of operating income for the first six months of this year.

“We are pleased with our second quarter performance,” CEO Mike Anderson stated. “The Grain & Ethanol Group led our results with record performance in both the grain and ethanol areas. Our Plant Nutrient Group also had a strong quarter. As I review these results, I am again reminded that our strategy of purposeful diversification allows us to remain a strong and profitable company even when one or more of our business units is under performing,” said Anderson.

Archer Daniels Midland (ADM) also reported strong financials for 2nd Quarter. According to their earnings statements, net earnings increased $388 million to $446 million, and segment operating profit increased $591 million to $799 million from the company’s totals for the same period one year earlier. The Andersons Corn Processing unit’s profit increased $151 million as a result of stronger bioproducts sales.

The company’s rising ethanol profit margins have been the catalyst for the company to increase its ethanol production. At the end of the month, ADM will bring its plant in Cedar Rapids, Iowa online. With the production from the new plant, ADM is expected to become the country’s largest ethanol producer, surpassing POET.

biofuels, Ethanol, Ethanol News

Verenium Reports Positive Second Quarter

Joanna Schroeder

Verenium Corporation announced its financial results for the second quarter of 2010 and the outlook is positive. On the enzyme side, the company reported increased total product revenue by 27 percent for the 2nd Quarter compared to the 2nd Quarter in 2009 and a 15 percent increase in revenue over 1st Quarter sales of this year. In the biofuels space, Verenium is best known for its development of enzymes to produce cellulosic ethanol.

“This has been a transformational quarter for Verenium. The transaction we announced with BP around the sale of our cellulosic biofuels business firmly positions us to focus our capital and human resources on the continued development of a leading industrial biotechnology and commercial enzymes business addressing lucrative, growing markets,” said Carlos A. Riva, President and Chief Executive Officer of Verenium. “I’m pleased with the progress we’ve seen across the business over the last quarter, notably, growing product revenues and continued successful efforts to aggressively manage expenses.”

The company has in fact had a good year. According the company’s financial report, total revenues for the second quarter and six months ended June 30, 2010 were $20.0 million and $33.0 million, respectively, compared to $16.3 million and $30.7 million for the same periods in 2009. Product revenues represented more than 60 percent of total revenues in both periods. They also finalized the sale of their cellulosic biofuels business to BP and their pilot facility located in Jennings, Louisiana, received $4.9 million from the Department of Energy.

Cellulosic, Ethanol, Ethanol News

Book Review – Power Grab

Joanna Schroeder

It’s been a year and a half since President Obama took office and there are definitely mixed emotions on how effective he has or hasn’t been. One area where many people have been critical is with regards to his green policies. One such critic is Christopher Horner, who has written a book with the central theme that Obama’s green polices are the worst thing that has happened to our country over the past two years. Power Grab, How Obama’s Green Policies Will Steal Your Freedom and Bankrupt America, has two major tenets: that climate change is a farce, and that the green policies and programs that are being developed to curb climate change will ruin our lives and our country.

The mood is set at the beginning of the book where Horner lays out what America will be like in 2015, when Obama’s policies begin to take affect. He lays out a country with energy shortages, food shortages and job shortages. He describes a world in which the rise of renewable energy and cap-and-trade sent our jobs oversees, and while America’s wealth is declining, the cost of living is rising.

Horner purports that any it would be one thing if the proposed green measures actually curbed global warming, but, he says, they don’t. He writes, “As I explained in Red, Hot, Lies, no proposal ever tabled would, according to anyone, detectably impact global temperature…” He goes on to say, “The real issue Americans should be concerned with is the outcome of these “green”schemes: the transfer of your liberties and wealth to the state, and the transfer of jobs to other countries.”Read More

book reviews, Environment, politics

Light Wind Forecast for Growth of Wind Power Industry

Joanna Schroeder

Although wind power is growing globally, especially in places such as China, only a light wind is forecast for wind energy growth in the United States. As reported by the American Wind Energy Association (AWEA), only 700 megawats (MW) were added in the second quarter of this year, down 57 percent from 2008 and 71 percent from 2009 levels. In addition, manufacturing investment is also lagging behind 2008 and 2009 levels.

The drop in new wind energy installation may come as a surprise to many, especially since the country has been touting the need for renewable energy development and the creation of green jobs for several years. Yet the words have not been backed up with enough action, and AWEA says that without passing a Renewable Electricity Standard (RES) that would require the nation to meet electricity goals through alternative energy such as wind and solar, the industry will continue to falter.

“Strong federal policy supporting the U.S. wind energy industry has never been more important,” said AWEA CEO Denise Bode. “We have an historic opportunity to build a major new manufacturing industry. Without strong, supportive policy like an RES to spur demand, investment, and jobs, manufacturing facilities will go idle and lay off workers if Congress doesn’t act now – before time runs out this session.”

Although President Obama continues to push climate legislation, policy experts don’t predict that any meaningful climate legislation will pass this year.

The Des Moines Register recently reported that the House included a renewable power mandate in a climate bill that barely passed but then stalled in the Senate. Last week, Senate Democratic leaders said that they would be moving forward with a stripped-down energy bill but this new version lacks any power mandate, despite the fact that consumers are supportive of RES legislation, this according to a national poll conducted by Public Opinion Strategies and Bennett, Petts & Normington.

This is unfortunate, since AWEA ultimately says that a long-term market is needed to guarantee growth, and the only way to do this is through an RES mandate.

Electricity, Wind

POET to Begin Biomass Harvesting in Texas

Joanna Schroeder

This week, POET will begin biomass harvest research in corn fields near Navasota, Texas. This is part of an ongoing effort to learn more about the most efficient ways to harvest and store biomass for cellulosic ethanol production.

Project LIBERTY, the country’s soon-to-be largest corn cob and corn stover cellulosic-to-ethanol plant, located in Emmetsburg, Iowa, is also engaged in biomass harvesting tests with the Idaho National Laboratory. It is anticipated that the plant will become operational in early 2012.

This summer marks the third year that POET will conduct biomass harvesting field tests in the state. The region is ideal for the research because harvests occur earlier here than in the Midwest. Researchers will monitor the biomass going through the combine during grain harvest and compare it to what is later baled for use in ethanol production. In addition, researchers will analyze composition and moisture of the bales, integral components to the success of biomass storage.

“We’ve learned a lot about harvesting biomass over the last few years in Texas, South Dakota and Iowa,” POET Biomass Director Mike Roth said. “We will continue to add to our knowledge of the issue and share that information with farmers as they begin the commercial harvest for Project LIBERTY.”

biomass, Cellulosic, Ethanol

San Diego, A Hot Bed of Algal Activity

Joanna Schroeder

Good news for biofuels this week as the California Department of Labor awarded the San Diego Biofuels Initiative a $4 million grant to train workers to join the biofuels workforce. The award was given through the “Green Innovation Challenge,” a green jobs initiative that is overseen by the state’s Department of Labor.

According to an article on SanDiego.com, the San Diego area is a hotbed for biofuels companies. There are nearly 30 businesses engaged in biofuels development, with many of these companies focused on algae. Two of the most notable companies in the region are Synthetic Genomics and Sapphire Energy. Both companies have received funding from oil companies and both companies believe they will be producing biodiesel from algae by next year.

The San Diego Biofuels Initiative is a consortium of associations that include CleanTECH San Diego, BIOCOM, San Diego Regional EDC, San Diego Workforce Partnership and the San Diego Center for Algae Biotechnology (SD-CAB), located at UC San Diego.

On another note, in June, SD-CAB received $9 million dollars to be dispersed over the next three years for research on algal biofuels from the Department of Energy.

According to a study released by the San Diego Association of Governments (SANDAG), algal biofuels research employs 410 scientists and other workers in San Diego but increases to 784 jobs when you include indirect jobs. The industry provides nearly $44.6 million in salaries and provides the region with $108.3 million in economic activity.

algae, biofuels, News

Missouri Congressman Supports Biodiesel Tax Credit

Cindy Zimmerman

biodiesel roy bluntMissouri Congressman Roy Blunt, fresh off a primary win to be the Republican candidate for Senator, stopped at the National Biodiesel Board (NBB) in Jefferson City, Missouri on Friday to voice his support for reinstating the biodiesel tax credit which expired at the end of 2009.

“I’m very concerned that we continue to see good, job-producing tax credits in the energy industry generally held hostage to cap and trade,” Blunt said during a press conference at NBB headquarters. “We need more American energy of all kinds. We need to develop more, find more, use less – conservation is an important part of this – and invest in the future.” He said continuation of the $1 per gallon biodiesel blenders tax credit, which was only in effect for five years, is essential for to keep growing the industry. “So we need to not just have an extension of these credits, but an extension for as long as we can possibly argue that these credits would be needed to create more American energy,” he said. Blunt is running against Democrat Robin Carnahan for the seat being vacated by the retiring Senator Kit Bond (R-MO).

biodiesel roy bluntAsked why he voted against a bill this year that would have reinstated the tax credit, Blunt replied that it included tax increases that he was against. “It’s not necessary to slow down one part of the economy in order to encourage another,” Blunt said. He is hopeful that there will be another vehicle to bring back the tax credit before the end of this Congress. “They’re talking now about an energy bill, sometimes called “Energy Light,” because it wouldn’t have the burdensome and ill-conceived cap and trade,” he said. “Hopefully, we can move forward with things that encourage all kinds of American energy.”

NBB CEO Joe Jobe noted that the biodiesel industry made great progress with the tax credit in place. “The biodiesel tax credit took effect in January of 2005, and in just that five short years, the biodiesel industry built more than 150 biodiesel plants nationwide, it brought green jobs and investment to rural areas, and most importantly has displaced petroleum with the first commercially available advance biofuel,” said Jobe. “It’s our number one priority to get that tax credit reinstated, retroactively, as quickly as possible.”

In answer to a reporter’s question, Jobe admitted that most of the nation’s 172 biodiesel plants have either closed or cut back production since the beginning of this year, but he did not have an exact number.

Listen to the press conference with Congressman Blunt and Joe Jobe here: Cong. Blunt and Biodiesel

Audio, Biodiesel, Government

Iowa Central Fuel Testing Lab Wins BQ-9000 Accreditation

Joanna Schroeder

There is a lot of talk today about creating “green jobs” and how best to train those people to enter the green sector. One of the early adopters of green education was Iowa Central Community College (ICCC). This week, the college announced that they have become the first laboratory to earn accreditation as a BQ-9000 laboratory. This accolade means that the lab has become a national leader in testing biodiesel and biodiesel blends to ensure they meet fuel quality standards.

Don Heck, who runs the nonprofit Iowa Central Fuel Testing Laboratory at ICCC, said in a press statement, “Testing fuel may not sound glamorous, but it is fundamental to the future of the biodiesel and the renewable fuels industry in terms of reliability and consumer confidence.”

Unlike the ethanol industry, which addressed and fixed quality issues back in the 1970s, biodiesel still struggles with quality issues. The BQ-9000 accreditation is the industry’s way of overcoming these fuel quality issues but it is not a mandatory label – it is voluntary. The quality assurance program is overseen by the National Biodiesel Accreditation Commission.

The lab offers cost-effective, rapid testing for biodiesel producers nationwide. It also tests other fuels such as ethanol and petroleum. The team that runs the lab, along with its supporters, hope that the new biodiesel accreditation will attract new customers, including the Iowa Department of Agriculture’s Weights and Measures Bureau, who is in charge of ensuring all fuels meet quality standards before they fill a consumer’s tank.

“Having the first BQ-9000 laboratory located in Iowa will drive business to our state, and further enhances Iowa’s position as a national biodiesel leader,” said Randy Olson, executive director of the Iowa Biodiesel Board, which helped make the lab a reality.

Steve Howell, National Biodiesel Board technical director, said other labs will follow suit, which will help ensure a high quality fuel supply for producers and consumers alike.

“Not every biodiesel plant has its own laboratory to test its fuel, so there is a need for qualified, credible laboratories to test fuel samples,” Howell said. “Becoming accredited is a rigorous process, and the Iowa Central Fuel Testing Laboratory deserves our congratulations for being the first.”

Biodiesel, News