Survey Shows Wide Support for Alt Energy Tax Breaks

John Davis

If Congress is wondering if there’s enough public support for the U.S. Senate to support the $1-a-gallon federal tax incentive (which, could come to a vote this week), a new survey shows Americans do favor these types of tax breaks.

This National Biodiesel Board press release says a new Stanford University poll finds that 84 percent of respondents favor federal tax breaks to encourage alternative energy, including water, wind and solar:

“The research clearly demonstrates Americans are crying out for home grown solutions to develop clean energy sources and end our addiction to oil,” said Joe Jobe, CEO of the National Biodiesel Board (NBB). “The biodiesel tax inventive is a perfect example of the type of investments the federal government should be supporting to cut carbon pollution, lessen our reliance on petroleum and create green jobs.”

Jobe said the biodiesel tax credit, in just five years since its enactment, has resulted in the construction of over 150 renewable refineries in 44 states, 23,000 jobs, and billions of dollars of net tax revenue to the U.S. Treasury, all while displacing billions of gallons of petroleum.

Congress allowed the biodiesel tax credit to lapse on December 31, along with all other expiring tax provisions. As a result of the expiration, much of the industry has just shut down and almost half its employees have been laid off, leaving the industry on the verge of collapse.

Retroactively reinstating the biodiesel tax incentive was incorporated into H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, which passed the House last month and is now under consideration in the Senate.

Jobe says the delay from Congress so far has been “unacceptable.”

Biodiesel, NBB, Solar, Wind

New Alliance to Promote Biodiesel Heating Oil

John Davis

An alliance of heating oil marketers, biodiesel makers and soybean growers could help put more Bioheat … a mix of biodiesel and conventional home heating oil … in homes and could dramatically increase the amount of biodiesel used in this country, especially on the East Coast, while keeping homes in that area warm with green heat.

During a press conference this morning from the Massachusetts Bioheat Conference in Boston, Michael Ferrante, President, Massachusetts Oilheat Council; Joel Thorsrud, United Soybean Board leader and a farmer from North Dakota; and Paul Nazzaro, the National Biodiesel Board’s petroleum liaison, announced their partnership to get all heating oil to have a 5 percent blend of soy biodiesel.

“The United States uses close to 8 billion gallons of heating oil annually. Even if we only have a B5 blend, this could utilize nearly 450 million gallons of biodiesel annually,” says Thorsrud.

Nazzaro says, eventually, they would like to get the blend up to B20. And he doesn’t believe there’ll be any issues getting the soy biodiesel from the Midwest to the East.

“It’s been done for years. At this point, we’re talking rail and truck, and there’s a high level of confidence that that demand could be met throughout the seasons.” Nazzaro adds there are some pipeline problems, especially since the aviation industry does not want ethanol or biodiesel in those lines. But he believes those issues will be resolved.

When asked about criticisms regarding mandating the use of biodiesel in heating oil, Ferrante says his association would endorse Bioheat, regardless of any requirements.

“We will take either a mandate or voluntary approach to embracing biofuels.” He admits that a mandate might not be a good fit in other states, but he thinks heating fuel marketers will embrace the biodiesel-based fuel.

The group also believes that Bioheat will be cost-competitive to the 100 percent petroleum heating oils.

You can hear more of the press conference in the player below.

Audio, Biodiesel

Ethanol Report From FEW

Cindy Zimmerman

Ethanol Report PodcastThis edition of “The Ethanol Report” comes from the 26th annual Fuel Ethanol Workshop in St. Louis where Renewable Fuels Association president and CEO Bob Dinneen gave the keynote address on major issues facing the industry.

FEW 2010In this interview, Dinneen discusses those issues, including increasing the blend rate and renewing ethanol tax incentives, with a message to the industry of the critical need to work together. He also talks about the Global Rebound Effect theory that is being used to challenge EPA on the Renewable Fuels Standard, and he responds to an Environmental Working Group report out this week opposing incentives for ethanol.

Bob was also interviewed live by AgriTalk host Mike Adams, broadcasting live from FEW on Tuesday.

Fuel Ethanol Workshop photo album

You can subscribe to this twice monthly podcast by following this link.

Listen to or download the podcast here:

Audio, Ethanol, Ethanol News, Ethanol Report, FEW, RFA

POET Finds Cellulosic Ethanol Cuts Emissions by 111 Percent

Cindy Zimmerman

A new independent lifecycle analysis released today by ethanol producer POET finds that cellulosic ethanol could cut greenhouse gas emissions by 111 percent over gasoline.

FEW 2010POET CEO Jeff Broin presented the results of the analysis at the 2010 Fuel Ethanol Workshop in St. Louis on Tuesday. The analysis specifically studied ethanol produced by Project LIBERTY, POET’s first planned commercial cellulosic ethanol plant, and shows that it actually has negative emissions by offsetting more greenhouse gas emissions than it produces.

“Not only is cellulosic ethanol a clean and safe alternative fuel, in cases such as Project LIBERTY, it can literally reverse some of the effects of our nation’s dependence on fossil energy such as oil,” POET CEO Jeff Broin said. “By expanding the number of sources for ethanol production, the entire nation can contribute to helping our nation’s economy, security and environment through alternative fuel production.”

The lifecycle analysis tracks the emissions of ethanol production from “field to tank.” It includes emissions from planting and harvest, feedstock transportation, conversion to ethanol, waste products, co-products and transportation of the ethanol. It also includes Environmental Protection Agency calculations for changes in land use and effects on agriculture inputs.

Read more about the announcement here.

Domestic Fuel reporter Joanna Schroeder interviewed Broin immediately after he made his announcement – listen to or download that interview below.

Fuel Ethanol Workshop photo album

Audio, Cellulosic, Ethanol, FEW, POET

Oil Spill Reality Check

Joanna Schroeder

Earlier today, the Global Renewable Fuels Alliance (GRFA) issued its top 10 list of offshore oils sites that they consider “at risk.” The list is an attempt to highlight the world’s choice between moving forward with the addition of more offshore oil rigs or building more sustainable biofuels plants.

“The choice is clear,” said Global Renewable Fuels Alliance spokesperson, Bliss Baker. “We can continue to put our precious resources at risk by drilling deeper and further out to sea or we can build new biofuels plants that can reduce the need for this dangerous practice. We can choose clean-ups or clean fuel.”

Worldwide ethanol production is estimated to exceed 22.6 billion gallons by the end of of 2010. This is nearly 1 million barrels per day (equal to about two days worth of oil leaching into the Gulf of Mexico) and will displace the need for more than 370 million barrels of oil. This is equivalent to replacing 100 offshore rigs that produce 10,000 barrels per day.

It is estimated that the current oil leak will be the largest oil disaster in American history and one of the worst global disasters once capped. Experts are predicting that the clean-up bill will exceed $1.43 billion not including lawsuits, fines, etc. While BP is said to have $80 billion is cash, many are anticipating that BP will go bankrupt compelling some legislators and environmental groups to call for a separate fund to use to pay out damages.Read More

Biodiesel, blends, Ethanol, Ethanol News, International, Oil, Opinion

Novozymes & Lignol to Develop Ethanol From Wood

Joanna Schroeder

Novozymes announced this morning that they have signed a research and development agreement to make biofuel from wood chips and other forestry residues with Lignol Energy Corporation. The goal of the partnership is to develop a process for making biofuel from forestry waste at a production cost less than $2 per gallon making it economically competitive with current gasoline and corn ethanol market prices.

“Novozymes’ goal is to enable commercial production of cellulosic biofuel from a wide range of feedstocks,” says Claus Crone Fuglsang, Senior Director of BioEnergy R&D in Novozymes. “Our enzymes have the unique ability to turn wood residues and plant waste into fuel for our cars. Lignol is an industry frontrunner and our work together over the past couple of years has reinforced a shared vision to produce energy and value from wood waste. We look forward to continued improvement under this partnership.”

This past February, Novozymes released an enzyme that enables commercial production of biofuel from plant waste. The enzyme converts cellulose in biomass into sugars that can then be fermented into ethanol. Lignol has developed a pre-treatment technology that prepares the wood prior to the introduction of the enzymes. The two will use Lignol’s pilot plant in Burnaby, British Columbia, Canada for the research and development of this cellulosic technology.

Lignol President and CEO Ross MacLachlan concluded, “The progress we have achieved to date with enzymes from Novozymes is extremely promising and a successful outcome of this collaboration should position us to produce cellulosic ethanol from woody biomass profitably and without the need for long term government subsidies.”

Cellulosic, Ethanol, Ethanol News

RFA President Addresses Ethanol Gathering

Cindy Zimmerman

FEW 2010As he has done for many years, Renewable Fuels Association president and CEO Bob Dinneen addressed the world’s largest gathering of ethanol producers at the opening of the general session for the 2010 Fuel Ethanol Workshop & Expo in St. Louis on Tuesday.

“We meet here today as an environmental catastrophe continues to unfold in the Gulf of Mexico. The economic and environmental cost of which is simply unimaginable,” said Dinneen. “More than ever before, now is the time to embrace the entrepreneurial spirit and ingenuity of America’s heartland and break our addiction to oil; now must be the time to seize control of our energy future. That future begins with the expertise and the creativity of the people in this room.”

Dinneen addressed the immediate concerns facing the ethanol industry, increasing the blend rate to 15 percent and renewing the tax incentives set to expire at the end of the year, and expressed optimism that both will yet be accomplished as long as the industry works together.

“The issues we must confront cannot be solved with press releases or a speech at an ethanol conference. In order to ensure the long term viability of this industry and those members of this industry to come, we must not shy away from hard work,” said Dinneen. “Let’s get to work.”

Listen to or download Dinneen’s speech in the player below and check out photos from FEW on Flickr.

Audio, Ethanol, Ethanol News, FEW, RFA

Team Ethanol is Back on the Track

Joanna Schroeder

There was some big news announced during the Fuel Ethanol Workshop (FEW) – Team Ethanol is back. Dave Vander Griend, the founder of ICM and one of the three original sponsors of the Team Ethanol IndyCar program, delivered the news that Team Ethanol will be back on the track for the first time in nearly two years at the upcoming Iowa Corn Indy 250 on Sunday, June 20th. Ryan Hunter-Reay will be returning as the driver, as part of Andretti Green Racing.

I asked Dave how the return of Team Ethanol came to be and he explained, “We thought this is an excellent opportunity to showcase the fact that fuel ethanol is also biodegradable.” He continued, “Some of the things that are happening here in the Gulf Coast and some of the issues surrounding this oil spill would not be as severe if there was a higher use of ethanol and a lower use of non biodegradable fuel in our tanks.”

Team Ethanol was a successful tool in creating awareness about higher blends of ethanol for many years. With the move to approve the option for consumers to choose higher blends at the pump, such as E15, the program demonstrates the incredible performance levels cars can achieve when using high blends of ethanol. The IndyCar Series uses 100 perfect fuel-grade ethanol.

Vander Griend said the program will bring more awareness to the public that ethanol is a good fuel. Andretti Green has four drivers, three of which are American and have a stake in what happens to our coastlines, explained Vander Griend,who also noted that they will be good spokespersons for ethanol.

ICM is a title sponsor of the Iowa Corn Indy 250 and will be a supporting sponsor through the remainder of the season. They are also hoping to raise sponsorship dollars so that Team Ethanol can compete in several more races this season.

Vander Griend concluded that the best thing about the renewable fuels industry is that they produce fuel year after year and the money stays in America. “When we spend our money on foreign oil, we use the oil up, burn it in our cars, the fuel’s gone. The money’s gone. With renewables, the fuel may also be gone but we still have the money. And that is probably the most important thing if we want to revitalize our economy.”

You can listen to my interview with Dave below and check out photos from FEW 2010 in our Flickr photo album.

Audio, Ethanol, Ethanol News, FEW, IA Corn Indy, Indy Racing, Video

26th Annual Fuel Ethanol Workshop Underway

Cindy Zimmerman

FEW 2010The 26th Annual Fuel Ethanol Workshop and Expo is officially underway and the mood is much more upbeat than it was last year.

FEW 2010“The industry has been through a couple of very difficult years,” said Mike Bryan, Chairman of BBI International, which sponsors the event. “So, we’re really glad to see the industry coming back, getting revitalized. We’re kind of sticking our heads out of the foxhole again and looking around on the horizon and so that’s very encouraging.”

Bryan says there are about 2200 attendees this year and 386 exhibitors, with 25 percent of those in attendance actual ethanol producers, making it the largest gathering of producers in the world.

FEW 2010One person not here this year who is sorely missed is Mike’s wife, Kathy Bryan, who passed away in July of last year after a valiant battle with cancer. “She actually started the Fuel Ethanol Workshop 26 years ago, this was her baby right from the beginning,” Bryan says proudly. To honor her memory, they are selling commemorative beer mugs to fund ethanol industry scholarships. “She started the scholarship a number of years ago and it was very dear to her heart to provide an opportunity for young people to get into the ethanol industry,” said Bryan. Already they have sold enough of the mugs to fund two $2,000 scholarships!

Listen to my interview with Mike Bryan in the player below, and check out photos from FEW 2010 in our Flickr photo album.

Audio, Ethanol, Ethanol News, FEW

Ribbon Cutting Opens Fuel Ethanol Workshop

Cindy Zimmerman

The ribbon cutting ceremony to open the 2010 Fuel Ethanol Workshop was short and sweet, with a welcome from BBI International Vice President Tom Bryan and Chairman Mike Bryan, greetings from welcome reception sponsor Growth Energy, and a special announcement about the return of the Ethanol Car to the Indy series by ICM’s Dave Vander Griend. It all took about 5:00 and you can watch it here on YouTube.

Ethanol, FEW