Levin, Baucus Put Biodiesel Credit in Unemployment Bill

John Davis

Legislation that would reinstate the federal $1-a-gallon tax credit for biodiesel has been attached to a new bill would extend unemployment benefits.

House Ways and Means Committee Chairman Sander Levin (D-Michigan) and Senate Finance Committee Chairman Max Baucus (D-Montana) introduced the measure today:

The bill would extend for one year (through 2010) the $1.00 per gallon production tax credit for biodiesel and the small agri-biodiesel producer credit of 10 cents per gallon. The bill would also extend for one year (through 2010) the $1.00 per gallon production tax credit for diesel fuel created from biomass. This proposal is estimated to cost $868 million over 10 years.

This Business Week article says the biodiesel industry would like to see the measure passed before the Memorial Day holiday.

“We’ve gone through this game before where it looks like the game is over,” [National Biodiesel Board spokesman Michael] Frohlich said. Producers had anticipated the credit would be extended back in February…

Levin and Baucus said the tax- and-spending package may be put to a vote in the House tomorrow. It would then have to be approved by the Senate before it could be signed into law by President Barack Obama.

We’ll keep watching.

Biodiesel, Government, Legislation

ILUC – One Consideration Too Many in Biofuel Regulation

Joanna Schroeder

In a recent article, “Indirect Land Use: One Consideration Too Many in Biofuel Regulation,” authors David Zilberman, a professor in UC Berkeley’s Department of Agricultural and Resource Economics and assistant researcher Gal Hochman, along with Deepak Rajagopal, argue that indirect land use effects (ILUEs) should not be considered in current California and federal biofuels polices. The authors write, “…we will argue here against an indirect land use in biofuel regulations for the basic reason that its inclusion in LCAs (life cycle analysis) contradicts a basic principle of regulation – namely that individuals are responsible only for actions that they control. The indirect land uses are difficult to compute and vary over time.”

In a nutshell, the authors contend that American farmers, or farmers anywhere for that matter, should not, and cannot be held accountable for the decisions made by others in other countries, such as Brazil. “The differences in the treatment of technical and pecuniary externalities is that producers control their production and hence their pollution. But in a competitive market, they don’t control the prices. This reflects a basic principle: Individuals should be responsible for activities that they control and not for those they don’t. This basic message of accountability suggests that producers of biofuel shouldn’t be held responsible for indirect land-use decisions made by others.”

The authors continue by explaining that there is a related flaw in the use of indirect land use and in how it is applied to regulating biofuels. Basic principles of public economics dictates that all emitters of greenhouse gas emissions are held responsible for their own activities and thus their own emissions. However, ILUE suggests that farmers are responsible for possible emissions by other farmers elsewhere. Therefore, the authors contend, it makes more sense to strive to enact policies that will make countries like Brazil, responsible for their own GHG emissions related to indirect land use.

Ultimately, while the authors acknowledge that there are indirect land use changes inherent in biofuel development, these will be reduced over time as the technologies improve. Yet they caution that the technologies won’t improve, and we won’t move to next generation biofuels if the investment community continues to ignore the industry, in part driven by the flawed theory of indirect land use.

biofuels, Ethanol, Ethanol News, Indirect Land Use

Western Wind & Solar Integration Study Released

Joanna Schroeder

Today, GE Energy has released “The Western Wind & Solar Integration Study,” which was prepared for the National Renewable Energy Laboratory (NREL). The purpose of the report was to investigate the operational impacts and economics of wind, photovoltaics and concentrating solar on the power system operated by the WestConnect group of utilities located mainly in the southwest. The study specifically looked at the benefits and challenges of integrating up to 35 percent wind and solar energy by 2017.

The states involved in WestConnect include Nevada, Arizona, New Mexico, Colorado, and Wyoming and four of these five states currently have Renewable Portfolio Standards (RPS) that require 15-30 percent of the states yearly electricity output to come from renewable energy between 2020-2025.

Among the key findings the study found that:

  1. 1. Fuel and emission costs decrease as more wind and solar are added. Using 35 percent wind/solar will decrease fuel costs by 40 percent and carbon emissions by 25-45 percent by 2017, depending on the price of natural gas. This is the equivalent of removing 22-36 millions cars from the road.
  3. 2. CO2 emissions decrease as more wind and solar are added and the emission reductions are even greater if coal is displaced.

It was also discovered that integrating large amounts of wind and solar into the grid does not require extensive additional infrastructure if key changes are made to current operational practice. In addition, increasing the size of the geographic area over which the wind and solar resources are drawn substantially helps to reduce the variability of the resources as does using wind and solar forecasts. The report also noted, as many key wind and energy experts have been saying, that efficiency upgrades will need to be made as well as additional transmission capabilities will need happen in order to realize the full potential of wind and solar energy.

“If key changes can be made to standard operating procedures, our research shows that large amounts of wind and solar can be incorporated onto the grid without a lot of backup generation,” said Dr. Debra Law, NREL project manager for the study. “When you coordinate the operations between utilities across a large geographical area, you decrease the effect of the variability of wind and solar energy sources, mitigating the predictability of Mother Nature.”

You can download a copy of the report here.

News, Research, Solar, Wind

NY’s Cabrini Terrace Goes Green With Biodiesel

Joanna Schroeder

There are still victories for biodiesel despite the delay in passing the tax incentive. This week, Cabrini Terrace, a 217 unit co-op located in Manhattan, NY is getting a little greener with its switch from traditional heating oil to METRO’s Greenheat. Greenheat is a blend of heating oil and biodiesel, with the biodiesel, in part, made from recycled restaurant grease.

“METRO is very proud to add Cabrini Terrace to our growing list of customers who are switching from traditional heating oil to a biodiesel blend,” said Gene V. Pullo, President of METRO. “Cabrini Terrace should be commended for taking the initiative to help improve the air quality in its community and do its part to reduce our dependency on foreign oil.”

The greener heating oil blend uses B2 and in this situation will reduce CO2 emissions by 53,769 pound each year. In addition, the switch will eliminate 2,400 pounds of sulfur, displace 2,400 gallons of petroleum and reduce sulfur, particulate matter and other air emissions – all this by using 120,000 gallons of Greenheat.

“Switching to METRO’s Greenheat couldn’t have been easier,” said Drew Turner, Chief Superintendent for Cabrini Terrace. “It has actually improved efficiency and requires less maintenance. I can’t think of any reason why every building doesn’t switch to Greenheat today.”

Currently, there are more than 800,000 buildings in New York using a cleaner blend of heating oil.

Biodiesel, News

Ethanol Pump Opening Celebrations

Cindy Zimmerman

The grand openings of new ethanol pumps are being celebrated Friday in two different states – one big on corn ethanol, the other not so much.

Illinois legislative officials and corn ethanol representatives will be opening the first blender pump in southern Illinois. The pump in Sullivan is the first of 20 such pumps planned in the state in a pilot program approved by the Illinois Department of Agriculture with funding from the state Department of Commerce and Economic Opportunity and the Corn Marketing Board.

pearsonMeanwhile, out in California, Pearson Fuels will join Oak Valley Chevron to celebrate the grand opening of the first E85 fuel station in Beaumont in the San Jacinto Valley.

Oak Valley Chevron is part of Pearson Fuels’ statewide roll out of new E85 stations throughout California, starting with its original station in San Diego. The E85 facilities were partially funded by the California Air Resources Board.

Mike Lewis, co-owner of Pearson Fuels, said, “It is exciting for us to see the progress and interest in alternative fuel infrastructure over the last few years because we have all been recently reminded of the harm that petroleum exploration can pose to the environment and our nation’s dependence on foreign oil is the greatest challenge our children will face. Alternative fuels are always coming next year, then the year after that, but this is a real station with real alternative fuel, open to the public 24 hours a day that will displace petroleum with every gallon pumped.”

Pearson brought the first Ethanol station to the state of California when it opened its San Diego station in 2003 as the world’s first Alternative Fuel Station featuring 10 different fuels. Today it specializes in bringing alternative fuels to the public throughout California.

blends, corn, E85, Ethanol, Ethanol News

Novozymes and Ceres Partner on Biofuel Crops

Cindy Zimmerman

Ceres sorghumMixing enzyme cocktails and customized biofuel crops to make cellulosic ethanol a reality is the goal of a new industry partnership.

Energy crop company Ceres, Inc. and enzyme provider Novozymes have announced a research collaboration to co-develop customized plant varieties and enzyme cocktails to improve the efficiency of converting biomass to fuel.

“According to the Billion Ton Study by the US Department of Energy, one third of the total sustainably collected biomass potential from agricultural resources can come from perennial crops”, said Cynthia Bryant, Global Biomass Business Development Manager of Novozymes.

Ceres and Novozymes will initially work to determine the best enzyme cocktails for the biorefining of Ceres’ commercial switchgrass seed products. The partners will also begin similar evaluations of sweet sorghum, and Ceres’ researchers plan to develop customized plant varieties that can be degraded more easily by Novozymes’ enzymes.

Cellulosic, Ethanol, Ethanol News

Ethanol Testimony at Farm Bill Hearing

Cindy Zimmerman

A House Agriculture Committee field hearing in South Dakota on the 2012 Farm Bill featured a lot of testimony about ethanol.

POET Scott WeishaarPOET Vice President for Commercial Development Scott Weishaar testified that the ethanol industry has become a legitimate threat to Big Oil and Washington deserves credit for envisioning that future when it created positive policies such as the Renewable Fuels Standard.

“With your help, we can continue this progress,” he said. “We have the natural resources, the ingenuity and the technology to reach our nation’s goal of 36 billion gallons of renewable fuel produced per year by the year 2022.”

He specifically asked the lawmakers to take four actions will help achieve that goal:

1. Increase the base blend allowed in today’s standard vehicles from 10 percent to 15 percent ethanol.
2. Mandate that all new vehicles purchased in the U.S. are flex fuel.
3. Provide incentives for installation of blender pumps, which can dispense a wide range of ethanol blends and allow greater choice for consumers.
4. Support cellulosic development through loan guarantees, a long-term extension of the cellulosic ethanol tax credit and incentives for farmers to offset risk in providing new biomass feedstock.

A panel of farmers at the hearing also stressed the need for actions to keep the ethanol industry growing in the United States. Gary Duffy, president of the South Dakota Corn Growers Association, said, “Along with renewing VTEEC, overcoming the blend wall is critically needed to create new markets and providing jobs across Rural America.” Growers Rod Gangwish of Shelton, Neb. and Steve Mast of S.D., also mentioned the need for continuing the tax incentives and increasing the blend rate.

Approximately 175 members of the agriculture community from South Dakota and surrounding states attended the hearing, which was hosted by Rep. Stephanie Herseth Sandlin. Opening statements from the hearing can be found on the House Agriculture Committee website.

Ethanol, Ethanol News, Government, POET

Study: How Biofuel Chemicals React When Burned

Joanna Schroeder

A new research paper involving researchers from North Carolina State University (NC State) offers insights into how biofuel chemicals react when burned. The study, “Biofuel combustion chemistry: from ethanol to biodiesel,” was conducted as an effort to help pave the way for the development of new biofuels and technologies to maximize energy efficiency while minimizing environmental and human health risks. It was featured in the May 3, 2010 issue of “Angewandte Chemie,” and was co-authored by researchers from NC State, Bielefeld University in Germany, Cornell University, Sandia National Laboratories, the University of Science and Technology of China, and Lawrence Livermore National Laboratory.

“Biofuels are a sensible choice as a renewable energy source, but of course there are complications,” says Dr. Phillip Westmoreland, a co-author of the study, professor of chemical and biomolecular engineering and director of the Institute for Computational Science and Engineering at NC State. “All of the biofuels have pros and cons, and you can’t manage or plan for use and risks unless you understand them enough.”

The study was designed to help identify risks through the discovery of the network of chemical steps that take place when biofuels are burned. The basis of the paper was founded on landmark research conducted by Westermoreland and his co-authors from research institutions in the United States, Germany and China. The study incorporates information other researchers have collected about the chemicals produced when biofuels are burned, and builds upon the knowledge of how those chemicals change during the combustion process. These insights stem from the use of a novel experimental apparatus the researchers built at Lawrence Berkeley National Laboratory and a second system in Hefei, China, which provide unprecedented detail as to exactly what is happening at a molecular level when biofuels are burned.Read More

Biodiesel, Ethanol, Ethanol News, Research

Rice U. Recognized for Biodiesel By-Product Research

John Davis

A Rice University researcher has been recognized for his work on the biodiesel by-product glycerin.

Biodiesel Magazine reports that Dr. Ramon Gonzalez has picked up the 2010 Glycerin Innovation Award sponsored by the Soap and Detergent Association and the National Biodiesel Board at the Annual Meeting & Expo of the American Oil Chemists’ Society for his work using a non-pathogenic form of E. coli to turn glycerin into high value fuels and chemicals:

Dr. Gonzalez and his team of researchers identified the metabolic processes and conditions that allow a known strain of E. coli to convert glycerin into ethanol. Glycerin is a byproduct of biodiesel production.

“The biodiesel process converts fats or oils into biodiesel and glycerin, with one pound of glycerin produced for every 10 pounds of biodiesel,” said Steve Howell, NBB Technical Director. “Glycerin is a sustainable natural sugar, and it is necessary to remove all the glycerin in order to meet the stringent ASTM specifications for biodiesel.”

The Rice researchers discovered innovative pathways and mechanisms that mediate glycerol fermentation in E. coli. That enabled their efforts to develop new technologies for converting glycerol into high-value chemicals. In essence, they designed strains of E. coli that could produce a range of products from biofuels, ethanol, hydrogen and organic acids.

The technologies are being made available for the commercial marketlicensed commercially so they can be brought to market.

Biodiesel, NBB

BioSolar Launches Bio-Based Solar Technology

Joanna Schroeder

One of the criticism of alternative energy has been that it takes petroleum to produce the alternative energy. Today, BioSolar, a developer of technology to produce bio-based materials from renewable plant sources, has announced that it has begun commercial production and sales of its bio-based backsheet for solar panels. BioBacksheet is a protective backing for photovoltaic (PV) solar modules that replaces current, more expensive and environmentally hazardous petroleum-based backsheets.

“This day has been four years in the making. We have finally completed the development of the world’s first commercial grade green backsheet and are ramping up production and are able to accept and fulfill orders,” said Dr. David Lee, CEO of BioSolar. “Over the past month, we have been demonstrating the BioBacksheet to major solar panel manufacturers. They are all excited about the BioBacksheet due to its high durability and improved performance over other backsheets on the market, and have requested large quantities for full scale integration trials into their solar panel production lines.”

According to the company, the primary material used in the BioBacksheet is a durable polyamide resin made from castor beans. During the extrusion process, the castor beans are compounded with a secondary non-petroleum material to form a unique and highly durable PV backsheet film. Company literature notes that in addition to being “green,” the produce has several other advantages including a single layer construction design that does not exhibit inter-layer de-lamination, a common problem in conventional laminated backsheets. This feature makes the BioBacksheet more reliable as well as more cost-effective as compared to petroleum-based backsheets.

Lee concluded, “A backsheet that is made from green sources and costs less is good for business, and good for the solar industry. This a very important inflection point in BioSolar’s growth and we are extremely proud and excited about our accomplishments. We look forward to being a significant player in the solar industry.”

News, Solar