ACE Conference 2026

William & Mary Turns Fish Killer Into Biodiesel

John Davis

Virginia’s College of William and Mary is turning algae, which is killing fish in a local lake, into biodiesel.

This article from the Daily Press says the school, working with industry and other universities, is using a flume to remove the algae from Lake Matoaka:

A rectangle-shaped floating dock with its midsection removed, the flume acts as a channel that will trap nitrogen, phosphorous and other nutrients that form oxygen-deprived dead zones in the lake and Chesapeake Bay watershed.

“Think of it as a rain-gutter-type device,” said Karl Kuschner, the university’s research scientist leading the effort. “We’ll be creating a 40-foot long hole in the water.”

Blobs of what looks like green cottage cheese — algae — cover the shore. As the algae dies, it descends to the lake floor consuming oxygen, said Dennis Manos, university vice provost. The dead zones send bass, gar, turtles and other marine life scrambling for safer waters.

“This,” Manos said gesturing toward to the lake, “is occassionally only a day or two away from a fish kill.”

In addition to the oil extracted from the algae, which will be used to research the potential of algae-biodiesel, the process is also able to get about 12 to 16 gallons of dry algae from the lake each month.

algae, Biodiesel

Industry Concerned About Lowering Cellulosic Ethanol Goals

Cindy Zimmerman

A big change in the 2011 proposed targets for the Renewable Fuel Standard (RFS2) set forth by the Environmental Protection Agency (EPA) today lowers the volume for cellulosic ethanol, compared to what is in the Energy Independence and Security Act of 2007 (EISA). The proposed goal for cellulosic biofuels next year under the proposal is now a range of 5 million to 17.1 million. The mandate for this year was already cut from 100 million gallons to 6.5 million in February.

“EPA remains optimistic that the commercial availability of cellulosic biofuel will continue to grow in the years ahead,” the agency said in a release about the proposal, but the ethanol industry is concerned that lowering the goal will lower investor interest in next generation biofuels.

“While this may be prudent for EPA based on market conditions, it does send a chilling effect through the investment community with respect to cellulosic ethanol technologies,” said Matt Hartwig with the Renewable Fuels Association (RFA). “EPA’s estimates underscore the need for Dept. of Energy and USDA to construct loan guarantee programs that work for cellulosic ethanol companies.”

Chris Thorne with Growth Energy says his organization has the same concerns. “Cellulosic ethanol needs much greater investment to become commercially viable. Yet, in the six years that the Department of Energy has been managing the program, it has yet to issue a single loan guarantee to a cellulosic ethanol producer,” he said.

The blend wall is also an issue for the ethanol industry to meet the RFS2 targets under EISA, according to American Coalition for Ethanol (ACE) executive director Brian Jennings. “The scaled-down targets for cellulosic biofuel clearly indicate the E10 blend wall is standing in the way of market certainty for both corn and cellulosic ethanol producers,” said Jennings. “Until the blend wall is dealt with in a meaningful way, it is going to be difficult to secure financing for and move forward with next-generation ethanol projects.”

The lowered target for cellulosic biofuels lowered the overall goal for total renewable fuels next year, from the 8.25 percent set for this year in February by EPA to 7.95 percent of total gasoline sales in
2011 or a total of 13.95 billion gallons.

ACE, Ethanol, Ethanol News, Growth Energy, RFA

EIA Looks at Ethanol Blend Wall

Cindy Zimmerman

EIAThe July 8 Energy Information Administration (EIA) “This Week in Petroleum” report takes a look at the fast approaching ethanol blend wall, predicting ethanol’s share of the gasoline market will reach the 10% saturation point by the beginning of 2011.

During April 2010 an estimated 834,000 bbl/d (12.8 billion gallons per year [BGY]) of fuel ethanol was blended into gasoline, representing an average 9.2 percent of total gasoline product supplied by volume. The July EIA Short-Term Energy Outlook projects that the ethanol share of the gasoline pool could reach 10 percent in the first quarter next year when total gasoline consumption is expected to average about 8.8 million bbl/d (135 BGY).

Renewable Fuels Association LogoThe EIA report concludes, in an understatement, that “the blend wall is an important event moving forward for the ethanol industry.” However, some in the ethanol industry say the blend wall is already here. According to the EIA’s Short-Term Energy Outlook report, ethanol production will average 850,000 barrels per day this year and grow to 880,000 next year. The Renewable Fuels Association (RFA) notes that would amount to an annual total of 13.5 billion gallons in 2011. “That is nearly 1 billion gallons more than called for by the Renewable Fuels Standard’s requirement for “renewable fuel,” and unless EIA knows something more about EPA’s decision-making process on E15, we believe it is unlikely that the industry will produce that volume of ethanol next year,” said RFA’s Matt Hartwig. “Current markets are limited by the arbitrary E10 blending limit enforced by EPA. And while higher level use in the form of E85 and mid-level blends is expanding, it’s not happening fast enough to justify EIA’s 2011 predictions. Further, while the ethanol export market is growing rapidly, it still remains too small to absorb that much excess supply.”

EIA’s report says, “absent a relaxation of the 10 percent limit on ethanol blending in the general gasoline pool, and with still increasing ethanol production capacity, there will likely be downward pressure on ethanol prices as the blend wall is approached.” How low ethanol prices could go, the report adds, will also be determined by the cost of production (i.e., corn prices) and whether the ethanol blender’s tax credit is extended by Congress.

Read EIA’s July 8 This Week in Petroleum report here.

Ethanol, Ethanol News, Government, RFA

EPA Proposes 2011 Renewable Fuel Standard

Cindy Zimmerman

The U.S. Environmental Protection Agency (EPA) today released a proposal for comment that sets the 2011 percentage standards under the agency’s Renewable Fuel Standard program, known as RFS2.

The Energy Independence and Security Act of 2007 (EISA) established the annual renewable fuel volume targets, reaching an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner, importer and non-oxygenate blender of gasoline determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.

The proposed 2011 overall volumes and standards are:

Biomass-based diesel (0.80 billion gallons; 0.68 percent)
Advanced biofuels (1.35 billion gallons; 0.77 percent)
Cellulosic biofuels (5 – 17.1 million gallons; 0.004 – 0.015 percent)
Total renewable fuels (13.95 billion gallons; 7.95 percent)

Based on analysis of market availability, EPA is proposing a 2011 cellulosic volume that is lower than the EISA target. EPA will continue to evaluate the market as it works to finalize the cellulosic standard in the coming months. Overall, EPA remains optimistic that the commercial availability of cellulosic biofuel will continue to grow in the years ahead.

EPA is also proposing changes to the RFS2 regulations that would potentially apply to renewable fuel producers who use canola oil, grain sorghum, pulpwood, or palm oil as a feedstock. This program rule would allow the fuel produced by those feedstocks dating back to July 1, 2010 be used for compliance should EPA determine in a future rulemaking that such fuels meet certain greenhouse gas reduction thresholds.

The second change would set criteria for foreign feedstocks to be treated like domestic feedstocks in terms of the documentation needed to prove that they can be used to make qualifying renewable fuel under the RFS2 program.

Public comment on the proposal will be accepted for 30 days following publication in the Federal Register.

Biodiesel, biofuels, Ethanol, Ethanol News, Government

New Jersey Passes Offshore Wind Development Act

Joanna Schroeder

At the end of June, the Cape Wind project received federal approval much to the dismay of vocal opponents. This will be the first off-shore wind project in the U.S. and will consist of 130 wind turbines and the project is expected to be complete in 2012. While the debate was raging on around Cape Wind, several other states were moving forward with developing off-shore wind projects of their own including New Jersey, Road Island and Maine.

Two months after Cape Wind was federally approved, New Jersey passed the Offshore Wind Economic Development Act. This act was designed to create financial incentives for offshore wind development and sets a target of 1,100 megawatts of wind generation. This goal ties into the state’s Renewable Portfolio Standard which sets targets for renewable energy including solar and wind. The act authorizes the New Jersey Board of Public Utilities (BPU) to set financial regulations and oversee applications for new projects and also requires suppliers of electricity to retail customers to hold an Offshore Wind Renewable Energy Certificate (OREC).

In addition to the creation of the ORECs, the act created a 100 percent tax credit for capital investments of $50 million-$100 million in new offshore wind facilities. In addition, the act will work in tandem with the Economic Development Authority to allocate money from the Global Warming Solutions Fund to support these projects and provide assistance to the manufacturers of offshore wind equipment.

While the act may seem somewhat cumbersome, here is what it boils down to. BPU has already provided $4 million to a developer who is looking to build a 346-megawatt project 16 miles off the southern coast of New Jersey. In addition, BPU has approved a 20-25 megawatt project three miles of the coast of Atlantic City. Should either of these projects see fruition before Cape Cod, New Jersey will take the title of the first completed offshore wind project.

However, what may be more important than who is first, is the support that offshore wind is receiving on the East Coast. The Atlantic Offshore Wind Energy Consortium was recently established by 10 states to promote the development of offshore wind projects. When you combine all of this activity it appears that offshore wind development has great momentum. Let’s hope that this momentum is not stymied by difficult and drawn out permitting processes.

News, Wind

MO Ethanol Plant Helps Feed Hungry

Cindy Zimmerman

With the help of corn growers and FFA members, a northwest Missouri ethanol plant helped provide 2,600 meals for hungry families in the Kansas City area last week.

Mid-Missouri Energy, a farmer-owned ethanol plant near Malta Bend, Mo., donated a plot of land to grow sweet corn for the hungry. Members of the Missouri Corn Growers Association (MCGA) and Malta Bend FFA did the harvesting and the result was 3,366 pounds of sweet corn for Missouri families in need, which was distributed through Harvesters Community Food Network in Kansas City, Mo.

“While sweet corn isn’t something we normally plant in these fields, we realize there are people in our community and in the city facing tough times,” said Billy Thiel, MCGA board member and corn grower from Marshall, Mo. “This sweet corn is one way Missouri corn growers can show that we care about our neighbors and that we are committed to feeding and fueling a growing population.”

During a presentation at the ethanol plant, Mid-Missouri Energy President Ryland Utlaut thanked the Malta Bend FFA Chapter for their help in harvesting the crop. The event helped to educate the media and the general public about the importance of corn and ethanol to the Missouri economy, and the difference between sweet corn and field corn grown in the state.

The donated fresh produce will be distributed through Harvesters vast network, resulting in nearly 2,600 meals for hungry families. Serving a 26-county area of northwestern Missouri and northeastern Kansas, Harvesters provides food and related household products to more than 620 not-for-profit agencies including emergency food pantries, soup kitchens and homeless shelters.

Read more about the project here.

corn, Ethanol, Ethanol News

Kansas City Clean Cities Holds Ethanol Workshop

The Kansas City Regional Clean Cites held a workshop today focusing on ethanol fuel. The speakers focused on where ethanol fits in the world today, fleet and retail success stories, and funding available for retail facilities.

“There are 4,560 flexible fuel vehicles in region 6 of GSA. . . We purchased 3.2 million gallons of gasoline in fiscal year 2009 and we’re on our way on purchasing more in fiscal year 2010,” said U.S. General Services Administration’s (GSA) Region VI Represenative Don Gard. “As a success, we’ve worked with the Army installing the E85 tank in Ft. Leonard Wood, MO. But we are still having the challenges of driver’s reluctance to use E85, educating consumers and there is a lack of E85 stations.”

“Three years ago, I began putting together green gas stations. . . We were the first in Kansas to put in a blender dispenser,” noted Zarco 66, Inc. owner (shown right). “Being able to get out and explain what I do is the key to moving this forward.”

Others speakers included Rich Cregar of Wake Technical Community College, Robert White of RFA, Kelly Gilbert of the Metropolitan Energy Center, Michelle Kautz of Growth Energy, Byan Fox of KCP&L, and Mike MacComiskey of Syn-Tech Systems.

E85, Ethanol, Ethanol News, News

Brazil Ethanol Pipeline Gets Environmental License

Cindy Zimmerman

Brazil’s ethanol pipeline is getting closer to reality as a preliminary environmental license for the project was issued this week.

The $1.1 billion project, which is a partnership between Petroleo Brasileiro SA (Petrobras), Mitsui & Co. and Camargo Correa SA, is designed to transport ethanol in a 337 mile pipeline from the producing regions in the Mid-West, Minas Gerais and São Paulo to the large consuming centers of São Paulo and Rio de Janeiro.

The project has been under development since early 2006 and is now scheduled to begin late next year.

Ethanol, Ethanol News, International

REX Company Invests in Another Ethanol Plant

Cindy Zimmerman

REX American Resources Corporation has agreed acquire 48% equity ownership interest in NuGen Energy of South Dakota. REX has agreed to acquire its ownership interest for $9.2 million with a commitment of up to an additional $6.5 million based upon the future profitability of NuGen.

NuGen Energy, a subsidiary of Central Farmers Cooperative, operates a nameplate 100 million gallon ethanol plant in Marion, South Dakota. The plant was built by Fagen, Inc. and utilizes ICM, Inc. technology. Upon completion, the investment will increase REX’s overall ownership interest of annual nameplate capacity ethanol production by approximately 33%. REX intends to fund its initial investment from cash on hand, and at April 30, 2010, REX had cash and cash equivalents of $101.4 million, including $86.1 million of cash at the parent company.

This represents the seventh ethanol plant investment for the electronics retailer, which first got into the ethanol business in December of 2006 by investing $14 million in Millennium Ethanol for a plant also located in Marion, South Dakota.

Ethanol, Ethanol News

Danish Company Claims World’s Largest Cellulosic Ethanol Plant

Cindy Zimmerman

A new cellulosic ethanol plant in Denmark is claiming to be the largest producer of “New Ethanol” in the world, turning wheat straw into 1.4 million gallons per year.

According to Inbicon CEO Niels Henriksen, the biorefinery in Kalundborg is producing both cellulosic ethanol and a clean lignin biofuel to replace coal. “But our renewable energy process is as important as our renewable energy products,” Henricksen says. “The Inbicon Biomass Refinery can demonstrate dramatically improved efficiencies when integrated with a coal-fired power station, grain-ethanol plant, or any CHP operation. Symbiotic energy exchange helps our customers build sustainable, carbon-neutral businesses.”

The Kalundborg refinery will be integrated with the Denmark’s largest power station. Waste steam from the power station will run the biomass refinery, increasing the refinery’s total energy efficiency to 71%. Inbicon says a variety of feedstocks can be used by the plant, including straw, corn stalks and cobs, sugar bagasse, and grasses.

According to the company, three U.S. companies have cellulosic projects in development that will each include a scaled-up Inbicon Biomass Refinery.

Sandra Broekema, manager of business development for Great River Energy, a Minnesota electric cooperative, spoke about Dakota Spirit AgEnergy, a commercial-scale Inbicon Biomass Refinery processing North Dakota wheat straw to be co-located with their new 64 megawatt Spiritwood Station.

John Gell, Director of Genesee Regional BioFuels, presented plans for a biomass business complex near Rochester, New York. His company is focused on bringing an old brown site back to life while revitalizing New York’s agriculture–processing corn stalks–transitioning to home-grown grasses. The lignin will offset coal used in existing power stations.

Peter Bendorf, PE, Integro Services Group, developing engineer for SWI Energy, plans a new 59MMgy corn-to-ethanol plant in Alton, Illinois integrated with a 20MMgy Inbicon Biomass Refinery. Utilizing the synergies of each will produce fossil-free ethanol.

Cellulosic, Ethanol, Ethanol News, International