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Verenium Happy With First Quarter

Cindy Zimmerman

VereniumDespite the fact that total revenues of $13.0 million were down $1.4 million compared to last year, Verenium Corporation executives were happy with the 2010 first quarter financial report released yesterday.

“I’m very pleased with the successful first quarter and start to 2010 Verenium had with both its biofuels and specialty enzymes business units,” said Carlos A. Riva, President and Chief Executive Officer of Verenium. “Of note, the $5.0 million in gross margin generated from enzyme sales for the quarter is a record for us and is an indication of the strength in that business.”

Product gross margin dollars increased to $5.0 million, compared to $4.8 million for the same period in the prior year, “due primarily to an increase in the royalty on Phyzyme profits received from Danisco, combined with an increase in sales of higher margin enzyme products.”

Verenium recently announced an additional $4.9 million award from the U.S. Department of Energy (DOE) to fund activities at the Company’s demonstration-scale facility in Jennings, Louisiana and extended the joint development program established in August 2008 with partner BP.

Cellulosic

Lufthansa to Fly on Biofuels by 2011

John Davis

German airline Lufthansa is looking to start flying some of their jets on a mix of biofuel within the next couple of years.

This story from Reuters says it’s a move to save money and cut greenhouse gas emissions:

Lufthansa rival KLM, part of Franco-Dutch Air France, last year became the first airline to test biofuel in a passenger airplane, filling one of four engines on a Boeing 747 with biofuel for a 1.5 hour test flight.

The carrier has said it aims to make commercial flights which use biofuel from 2011.

U.S.-based Continental Airlines, the U.S. airline that is set to create the world’s largest carrier by merging with United Airlines parent UAL, had already used a mix of biologically derived fuel and jet fuel on a test flight.

[Lufthansa chief executive Wolfgang] Mayrhuber said Lufthansa had no plans to run individual test flights at this point. Instead, the carrier would wait until it could start using biofuel regularly on some routes to gather reliable data over a longer period of time.

In the long run, the use of biofuel is expected to save airlines money.

“First, we are hoping to get some resource security, and second, we hope that we will have some advantages in our costs for emissions trading,” Mayrhuber said.

Lufthansa estimates that it could spend between $200-470 million a year in European Union Emissions Trading System (ETS) credits they will have to pay starting in 2012. The airline will have to buy fewer credits by using the biofuels.

biofuels

Ethanol Co-Product Has Human Nutrition Benefits

Cindy Zimmerman

The ethanol co-product known as DDGs or dried distillers grain is mostly used as livestock feed, but a food grade version could help improve human nutrition.

South Dakota State University research shows a traditional Asian flatbread called chapathi (or chapati) gets a big boost in protein and fiber when fortified with food-grade distillers grains.

SDSU food scientist Padu Krishnan said it is one example of the ways DDGS could help improve human nutrition worldwide – and provide a new market for the ethanol co-product. Krishnan, a cereal chemist, has been studying and writing about the possibility of using DDGS in human diets since the early 1990s. Especially now with new state-of-the-art ethanol plants coming online in recent years, Krishnan said, the ethanol industry is well poised to make food-grade DDGS.

In lab studies, Krishnan and his colleagues found that using DDGS to make up 10 percent of the dough in chapathi, an Asian whole wheat unleavened bread eaten in South Asia and East Africa, boosted the fiber from 2.9 percent to 7.8 percent, while using 20 percent DDGS in the dough increased the fiber to 10.3 percent. Protein content also increased by using DDGS in the dough, up to 15.3 percent by adding 20 percent to the dough.

DDGS is ideal for including in human diets because it contains 40 percent dietary fiber and nearly 37 percent protein.

Distillers Grains, Ethanol, Ethanol News, Research, University

Brazil and US Ethanol Spar Over California Standard

Cindy Zimmerman

UNICAIn a court brief filed last week, the Brazilian Sugarcane Industry Association (UNICA), Brazil’s ethanol trade association, defended California’s Low Carbon Fuel Standard (LCFS) against lawsuits filed by the petroleum, trucking and ethanol industries of the United States.

“With about one in every ten U.S. cars driven in California, the largest state in the country with one of the highest carbon intensities in the world is seeking to do its share to fight climate change,” said Joel Velasco, UNICA’s Chief Representative in North America. “After exhaustive study, state officials have identified sugarcane ethanol as an important part of the solution to achieving California’s low-carbon goals, and our industry is prepared to help meet the challenge.”

Growth EnergyHowever, Growth Energy CEO Tom Buis says the Brazilian sugarcane ethanol industry is defending a flawed formula that overestimates theoretical “indirect land use change” (ILUC) penalties on U.S.-made grain ethanol – when ILUC itself has yet to be proven as fact. “The foreign interests that would stand to gain under California’s flawed low-carbon fuel standard are rushing to defend it – despite the fact that ILUC is far from certain, and despite new evidence that the California Air Resources Board’s use of a Purdue University formula estimating ILUC was wrong. And that evidence comes from the very university that designed the formula,” said Buis in a news release.

Buis notes that a recent Purdue University study shows that the formula used by California overestimates corn ethanol’s ILUC emissions by more than twice as much.

Growth Energy, in conjunction with the Renewable Fuel Association and several agricutlural organizations, are challenging California’s LCFS on grounds that the regulations violate the Commerce and Supremacy clauses of the U.S. Constitution. The case will be heard on May 26 in Federal District Court in Fresno, California.

POST UPDATE: UNICA’s Joel Velasco wrote in to comment that Growth Energy’s issues with indirect land use change “have nothing to do with the challenges before the court – the lawsuit is about whether the Constitution allows California to regulate its fuels.” Velasco says he was not defending CARB’s ILUC calculations in his quote, “In fact, CARB assesses a higher ILUC penalty on sugarcane than corn — 46 vs. 30 gram of CO2 per megajoule. We just think California has a right to regulate its fuels under the Constitution.”

Ethanol, Indirect Land Use, International

Ethanol Terminal Opens in Shreveport

Cindy Zimmerman

A terminal to provide the ethanol needs of northwest Louisiana and the surrounding area has opened in Shreveport.

Eco-Energy, Inc. of Franklin, Tennessee recently started operations at the ethanol distribution terminal, which is a joint project with Red River Terminals and is expected to serve the bulk ethanol needs of the Shreveport area as ethanol blending increases over the next several months. The facility is located close to the area’s gasoline terminals to provide customers with a logistically advantaged outlet to receive ethanol via rail into the metropolitan area. The terminal is equipped with a railcar manifold system and dual truck loading rack that will allow for the simultaneous offloading of up to 10 rail cars per day. Eco-Energy will be responsible for the day-to-day logistics, throughput, and accounting activities for this terminal.

Eco-Energy is an alternative energy company focused on the marketing, trading, transportation, and distribution of biofuels. The Distribution Services division of Eco-Energy locates, develops and manages sites for transloading and distribution in strategic locations where it is difficult to bring biofuels to market.

Distribution, Ethanol, Ethanol News

Novozymes, Nedalco Partner on Ethanol Production

Joanna Schroeder

Today Novozymes, a leader in the development and production of enzymes used in the ethanol process, and Royal Nedalco, a leading developer of yeast as well as an ethanol producer, have announced a collaborative project to develop a new fermentation process that can efficiently ferment C5 and C6 sugars. Fermentation of both of these types of sugars is essential for the commercialization of cellulosic ethanol.

“Novozymes is first and foremost an enzyme provider, but we wish to be a valuable partner for the biofuel industry,” said Claus Fuglsang, Senior Director for Bioenergy R&D at Novozymes. ”By contributing our fermentation insight to this partnership we help producers of cellulosic biofuel increase their yields. This will benefit the entire industry and eventually also Novozymes.”

Biofuels made from agricultural waste such as wheat straw and corn stover is quickly approaching commercialization, but improvements in the production steps are still needed to more efficiently and cost competitively bring the fuel to market. As explained by Novozymes, when producing cellulosic ethanol, enzymes convert cellulose and hemicellulose in agricultural waste to sugars which are then fermented into ethanol. To achieve optimal yields, it is essential to ferment not only the easily fermentable C6 sugars (glucose) but also the more difficult sugars (xylose and arabinose). Consequently, Novozymes and Royal Nedalco are working together to develop this more efficient process.

In a company statement, Ger Bemer, CEO of Royal Nedalco, stated, “Nedalco has successfully addressed the challenges of C5 sugar fermentation. This partnership will aim to widen and speed up the commercial availability of C5 fermentation technology to cellulosic biofuel producers all over the world.”

Under the terms of a Joint Development Agreement, Royal Nedalco will develop different strains of C5 yeast which will then be tested by the partners. After final development, Royal Nedalco will market the most efficient yeast strain to producers of cellulosic ethanol.

Ethanol, Ethanol News

Biofuels Digest Names Top Twitterati

Cindy Zimmerman

Biofuels Digest has named the top 20 “biofuels observers who are shaping opinion via Twitter.”

Some of the top names in the industry are on this list that Biofuels Digest calls “the leading practitioners of the art – the Twitterati that are shaping the biofuels landscape with their bursts of 140-character or less messages – sometimes as many as 50 or more per day to hundreds , thousands, or tens of thousands of followers.”

Here’s the list:

1. Vinod Khosla – writing as vkhosla – 31454 followers – 65 tweets
2. Solazyme – writing as SOlazyme – 8968 followers – 785 tweets
3. Robert White (RFA) – writing as fuelinggood – 4490 followers – 5421 tweets
4. Green Portland Info – writing as Green Posting – 4170 followers – 972 tweets
5. Renewable Energy World – writing as REWorld – 3619 followers – 2355 tweets
6. Missy Ruff – writing as renewablefuel – 2,839 followers – 4,063 tweets
7. Chuck Zimerman & AgWired – writing as AgriBlogger – 2,135 followers – 6,847 tweets
8. Sean O’Hanlon (ABC executive director) writing as Sean_OHanlon – 1244 followers – 1761 tweets
9. Ashley Morrison – writing as EthanolFuel from Omaha, NE – 1,034 followers
10. RFA – 1,134 followers – 1709 tweets
11. AlgaeBiofuels – 863 followers – 16,374 tweets
12. Peter Went – writing as Energy_Risk – 719 followers – 11,855 tweets
13. Todd Neeley – writing as ethreporter – 688 followers 1129 tweets
14. Domestic Fuel – writing as DomesticFuel – 500 followers – 2078 tweets
15. Bob Dinneen (RFA) writing as ethanolbob – 421 followers -571 tweets
16. ACE – writing as blend_ethanol from Sioux Falls, SD 388 followers
17. Meghan Sapp – writing as SugarcaneBlog – 379 followers – 1150 tweets
18. POET Ethanol – Writing as ethanolbyPOET – 336 followers – 487 tweets
19. Matt Hartwig (RFA) – writing as matthartwig – 246 followers – 401 tweets
20. Todd Taylor – writing as cleamtechczar – 216 followers – 624 tweets

ACE, biofuels, Ethanol, Ethanol News, POET, RFA

Canadian Utility Tests Biodiesel in Extreme Cold

John Davis

A Canadian power company is funding testing of biodiesel in extreme cold condiitons to see if the green fuel will perform and how well it will hold up to long-term storage under those conditions.

This press release from Manitoba Hydro says the utility has partnered with Natural Resources Canada’s National Renewable Diesel Demonstration Initiative (NRDDI) in the $340,000 project testing 5 percent biodiesel blends in electric generators in a remote northern Manitoba community:

This study on the quality and reliability of biodiesel will contribute to a better understanding of the technical issues related to the use of the fuel. This research will also identify the best solutions to overcome any potential challenges to biodiesel implementation in Canadian operations…

“The Government of Canada is working closely with industry partners like Manitoba Hydro to help ensure the seamless integration of renewable diesel in the Canadian fuel market,” said James Bezan, Member of Parliament for Selkirk – Interlake. “This research is an important step in moving forward with renewable fuel regulations and in reducing Canada’s total greenhouse gas emissions.”

“Manitoba Hydro is interested in exploring all means to reduce the impact of its operations on the environment. Biodiesel is a way to cut back on greenhouse gas emissions caused by diesel generators and we are pleased to cooperate with Natural Resources Canada with the help of the Canadian Renewable Fuels Association to confirm the positive results of earlier trials,” said Bob Brennan, Manitoba Hydro President and CEO.

“Biodiesel is rapidly growing as part of Canada’s new supply of sustainable clean energy. We are confident this demonstration will further validate the viability and reliability of biodiesel in all aspects of transportation and stationary use in the most demanding of Canada’s weather conditions,” said Gordon Quaiattini, President, Canadian Renewable Fuels Association.

Two years ago, Manitoba Hydro stored some 5 percent bioidesel in Brochet, in the northern reaches of Manitoba, for more than a year and burned it successfully.

Biodiesel

Biodiesel Plant Layoffs Prompt Renewed Call for Action

John Davis

Another day, more jobs lost due to Congress’ inaction on renewing the $1-a-gallon federal biodiesel tax credit.

This time, it’s the Maple River Energy biodiesel plant near Galva, Iowa. The Iowa Renewable Fuels Association says 12 of the facility’s 18 employees are being laid off until the biodiesel blenders credit is reinstated:

Delayne Johnson, General Manager of Maple River Energy, added: “Looking my employees in the eye and telling them they were being laid off was one of the hardest things I have ever had to do in my life. Despite the expiration of the tax credit, we did everything we could at Maple River Energy to keep a core key group of highly trained employees on the job. We took Congress at their word when they promised to make restoring the biodiesel tax credit their first priority in 2010. Congress has failed to live up to that promise.”

“The fact that the U.S. Congress has allowed the biodiesel tax credit to lapse for over one-third of 2010 is absolutely mind-boggling,” said IRFA Executive Director Monte Shaw. “Congress’ inaction has cost thousands of green jobs – another 12 this week. As painful as this is, if the finger-pointing between the House and Senate stops and they reinstate the biodiesel tax credit, within 24 hours many of those green collar biodiesel jobs across the country will be reinstated.”

Meanwhile, KCRG-TV in Cedar Rapids reports one of Iowa’s U.S. Senators, Republican Charles Grassley is chiding the Obama Administration for failing to make renewal of the credit a priority … even as the President just wrapped up a tour of wind turbine plant in Iowa and a biofuel plant nearby in Missouri:

“He ought to be giving some push to this, particularly when traveling southeast Iowa to say that you want a jobs bill, you want to promote green jobs, you want to promote more jobs,” Grassley said. “One little simple bill, not controversial, and you could put 23,000 people back to work right away.”

About 2,000 biodiesel jobs have already been lost this year in Iowa. The IRFA warns those layoffs could become permanent if Congress doesn’t act soon. Some leaders have promised the bill will be considered before Memorial Day.

Biodiesel, Government, Legislation

Big Oil / Big Auto E15 Study ‘Biased’ & ‘Inconclusive’

Joanna Schroeder

The ethanol industry is responding today to a recent study designed to test vehicle compatibility with E15 and higher blends of ethanol. The study, “Mid-Level Ethanol Blends Catalyst Durability Study Screening,” was conducted by the Coordinating Research Council (CRC), a non-profit organization funded by the auto and oil industry. According to Growth Energy, the research is “inconclusive” because it failed to complete sufficient vehicle testing and it ignored a ‘pile of data’ from academic, government and third-party research that has shown that E15 does not harm engine and emission systems or affect durability or drivability.

As disclosed in the CRC report, the organization’s aim was to show higher temperatures in certain vehicles using various blends of ethanol. They did in fact accomplish this goal but the average temperature change in the 4 cylinder vehicles was only a 2.0- 2.7 degree increase from E10 to E15 but there was a degree variance of 200 degrees among some of the vehicles. The reason for this could be that some of the vehicles were not designed to run on ethanol blends so the computer systems were not programmed to adjust to the alternative fuels. This said, these computer systems could be re-programmed to run on mid-level ethanol blends with no negative effects.

In addition, CRC did not disclose that of the 25 makes and models chosen for testing, several of them are more prone to catalysis failure than others regardless of the intermediate blend in the tank – meaning that particular car’s design is a bad design and will fail even if using straight gasoline. Read More

blends, Ethanol, Ethanol News, Growth Energy, Research