NEC 2027

Biodiesel Credit Clears Senate, On to House

John Davis

As expected, the federal $1-a-gallon biodiesel tax incentive has cleared the U.S. Senate on the back of the current jobs bill.

The 62-36 vote now moves the measure into a reconciliation phase with the House’s version of the bill.

I caught up with Michael Frohlich, the director of federal communications for the National Biodiesel Board’s office in Washington, D.C. earlier this evening. He says final passage of this important measure can’t come soon enough.

“It’s an immediate need for the industry at this point,” says Frohlich, pointing out that biodiesel has been without the credit since the beginning of the year. Fortunately, if the bill does pass and is signed into law, it will be retroactive back to January 1, 2010.

But Frohlich is worried that biodiesel will be back in the same boat next December 31st as it was last December 31st, because this version of the tax credit expires at the end of this year.

“Although it’s slightly a bit of a hollow victory in the sense that we’ll have to go back to the drawing table once this gets enacted to make sure that it continues to get enacted again next year, it is traditional that [Congress does] pass these extenders, and we haven’t seen any objection from any senator or House member.”

He says last year, the Senate got so caught up in the health care debate, lawmakers worked on Christmas Eve … and that never happens … and the incentive got left by the wayside. Frohlich doesn’t expect that the biodiesel credit will get left behind again, but it has reinforced that the NBB’s number one legislative priority is to get a multi-year tax credit into effect.

And hopefully, there won’t be a health care debate that stops all business.

You can hear all of my conversation with Michael below.

Audio, Biodiesel, Government, Legislation, NBB

Register Now For Process Optimization Seminar

Chuck Zimmerman

It may be a little late in the day for this reminder but you can still go online to register for a spot in the upcoming Process Optimization Seminar being hosted by Phibro Ethanol Performance Group, along with Fremont, Fermentis and Novozymes.

The Seminar is targeted to plant managers, operations managers, technical managers, lab managers and general managers. This interactive seminar is focused on helping ethanol plants increase their efficiency and profitability through learning about new technologies available for the fermentation process. This two half-day seminar is being held in Indianapolis, Indiana on March 30-31 and the early registration deadline is March 10 (uh, that’s today!).

Click here to get registered.

Domestic Fuel is happy to be the media partner for this event.

Education, Ethanol, Ethanol News

Wisconsin Team Turns Biomass into Jet Fuel

John Davis

A group of engineers at the University of Wisconsin-Madison has been able to turn biomass into the chemical equivalent of jet fuel, and they’ve been able to do it using a process that actually takes advantage of biomass sugars’ bad habit of degrading.

This press release from the school says a simple process developed by James Dumesic, Steenbock Professor of Chemical and Biological Engineering at UW-Madison, postdoctoral researchers Jesse Bond and David Martin Alonso, and graduate students Dong Wang and Ryan West preserves about 95 percent of the energy from the original biomass, requires little hydrogen input, and captures carbon dioxide under high pressure for future use:

Much of the Dumesic group’s previous research of using cellulosic biomass for biofuels has focused on processes that convert abundant plant-based sugars into transportation fuels. However, in previously studied conversion methods, sugar molecules frequently degrade to form levulinic acid and formic acid — two products the previous methods couldn’t readily transform into high-energy liquid fuels.

The team’s new method exploits sugar’s tendency to degrade. “Instead of trying to fight the degradation, we started with levulinic acid and formic acid and tried to see what we could do using that as a platform,” says Dumesic.

In the presence of metal catalysts, the two acids react to form gamma-valerolactone, or GVL, which now is manufactured in small quantities as an herbal food and perfume additive. Using laboratory-scale equipment and stable, inexpensive catalysts, Dumesic’s group converts aqueous solutions of GVL into jet fuel. “It really is very simple,” says Bond, of the two-step catalytic process. “We can pull off these two catalytic stages, as well as the requisite separation steps, in series, with basic equipment. With very minimal processing, we can produce a pure stream of jet-fuel-range alkenes and a fairly pure stream of carbon dioxide.”

The researchers say the fuel produced is high-energy density, making it better suited for the aviation industry than more conventional ethanol. Now, the team is working on making the process cost-effective.

biomass

Biodiesel Clears Senate Hurdle on the Back of Jobs Bill

John Davis

It looks like the $1-a-gallon federal biodiesel tax incentive could be close to renewal, as the jobs bill to which it was attached has cleared a key vote in the U.S. Senate.

The vote came Tuesday as eight Republicans sided with 58 Democrats to end debate on the $150 billion measure.

The cloture vote clears the way for final passage in the Senate. H.R. 4213, the American Workers, State and Business Relief Act includes retroactive extension of the biodiesel tax credit, and it will have to be reconciled with the US House’s version.

The American Soybean Association is urging lawmakers to work together to get a final bill done:

“Expiration of the biodiesel tax incentive has essentially caused the production and use of biodiesel in the U.S. to cease and has placed thousands of jobs currently supported by the domestic biodiesel industry in immediate jeopardy,” said ASA President Rob Joslin, a soybean producer from Sidney, Ohio. “Companies have already started laying-off employees, and this situation is certain to worsen the longer the tax incentive is allowed to lapse.”

An interesting note: I found out about this passage earlier on Tuesday when our friend Jessica Robinson from the National Biodiesel Board (@Biodiesel_Media) tweeted, or more accurately, re-tweeted @agripulse‘s tweet to my Twitter account (@jdavisreporter) when the vote happened. Didn’t take long for at story to travel around the social media! No wonder Chuck and Cindy (@AgriBlogger and @FarmPodcaster) have been such big advocates!

Biodiesel, Government, Legislation

Biofuels and Conservation Achievable with Biomass

John Davis

Getting energy from the land and practicing good conservation are not mutually exclusive. A federal ag deartment researcher says we can have both through using biomass.

USDA researcher Doug Karlen, who works at the Agricultural Research Service’s National Soil Tilth Lab in Ames, Iowa, told attendees of the recent USDA Outlook Forum that conservation and energy from biomass can be compatible if three things are considered.

“If we utilize multiple feedstock options, multiple conversion platforms and recognize that’s there’s no single solution.”

Karlen also told the group that you have to consider how land conditions vary. In addition, biomass cannot always be seen as just a waste waiting to be made useful. He points out that the trade-off for using biomass from fields for bioenergy is that there is no residue left over to renew the soil with nutrients, as well as losing the habitat for wildlife those crop leftovers provided. Karlen says that’s why it is so important to have a diversity of biomass products within a certain area.

biomass, Government, USDA

S4 Energy Solutions Announces Plasma Gasification Project

Joanna Schroeder

S4 Energy Solutions has recently announced plans to develop a plasma gasification facility at Waste Management’s Columbia Ridge Landfill in Arlington, Oregon. The facility will covert municipal solid waste into clean fuels and renewable energy. Construction is beginning in early summer and the plant will be online by the end of this year. During construction, 28 people will be employed with 16 being permanent once the facility is operational. S4 is a partnership between Waste Management and InEnTec, a deal that was solidified in May of 2009.

“Our goal is to extract as much value as possible from waste and this project will help us recover valuable resources to generate clean fuels, renewable energy and other beneficial products,” said Dean Kattler, area vice president for Waste Management Pacific Northwest. “This project strengthens our focus on renewable energy and new technologies that use waste as a resource. We are committed to growing our business in this region in innovative ways, bringing green jobs to communities where we already have operations and community relationships.”

Using S4’s PEM process, waste materials are prepared and fed into a phase gasification chamber that operates at nearly 1500 degrees Fahrenheit. Once this phase is complete, the waste materials flow into a second closed chamber where they are superheated using plasma, an electricity-conducting gas. Ultimately, the intense heat rearranges the molecular structure of the waste converting it into syngas. From here, the syngas can be converted into ethanol or diesel or into industrial products like hydrogen or methanol.

This site also features a landfill gas-to-energy (LFGTE) facility which captures methane gas created during decomposition and to use for electricity which powers 5,000 homes in Seattle. Sixty-seven windmills also generate 100 MW of electricity at the landfill and the power is sold to PacifiCorp.

Jeff Surma, president and chief executive officer of S4 Energy Solutions, concluded, “Plasma gasification has garnered a lot of attention recently, as we look for new ways to sustainably manage waste while recovering valuable resources. We believe the project will demonstrate commercial viability of the new S4 integrated system, so that we can implement this technology at many other locations for a wide variety of applications.”

Electricity, Energy, Ethanol, Hydrogen, Waste-to-Energy

Worldwide Oil Subsidies Could Top $500 Billion

Joanna Schroeder

Last September, the G-20 leaders announced during an event in Pittsburgh, that they are committed to phasing out controversial fossil-fuel based subsidies. According to the Global Subsidies Initiative, the G-20 leaders blame subsidies for encouraging wasteful consumption and undermining efforts to combat climate change. Referencing studies by the Organization for Economic Cooperation and Development (OECD) and the International Energy Agency (IEA), the G-20 said that “eliminating fossil fuel subsidies by 2020 would reduce greenhouse gas emissions in 2050 by ten percent.”

Last month, the preliminary report was released, “Analysis of the Scope of Energy Subsidies and Implementation of Phasing Out” written by researchers from the International Energy Association (IEA), World Bank, the Organization of Petroleum Exporting Countries (OPEC) and the Organisation for Economic Co-operation and Development (OECD). The report has found that the world could spend in excess of $500 billion each year to subsidize fossil fuels.

In response to this early draft, Tom Buis, with Growth Energy, an organization that represents the US ethanol industry said, “This study confirms what millions of Americans have known all along. Our addiction to oil has a devastating impact on our nation’s economy and energy security, as well as that of nations around the world. By increasing the production of domestic, renewable ethanol, we will not only enhance U.S. national security and green our environment but dramatically reduce the transfer of wealth that occurs today, keeping more money and jobs here at home at a time when it is needed most.”

Buis concluded, “Further, by learning many of the agricultural innovations that the U.S. uses today for farming and ethanol production, developing nations can benefit from both food and fuel production, helping them to become more energy independent and grow their economies.”

Ethanol, Growth Energy, Oil

GTI to Develop Home Solar Thermal Products

Joanna Schroeder

Gas Technology Institute (GTI) recently announced the opening of its Combine Heat and Power (CHP) and Renewable Energy Laboratory located on an 18-acre site in Des Plaines, Illinois. Much of the focus of this lab will be to bring to market more capabilities for developing a wide variety of efficient, sustainable renewable energy technologies such as solar thermal products. The site features a multitude of different types of low-to-medium temperature solar thermal technologies including tankless natural gas water heaters, boilers, space conditioning equipment, and more.

In a press statement Bill Liss, Managing Director, End Use Solutions said, “The advancement of renewable energy is crucial to reducing the demand for conventional fossil fuels while also reducing carbon emissions. A key challenge, however, is integrating renewable energy solutions – such as solar thermal – in a cost-effective way for homes, commercial businesses, and manufacturing facilities. We’re addressing these challenges, with a goal of bringing practical, clean, high-efficiency hybrid solar thermal energy technologies to the residential, commercial, and industrial sectors.”

According to GTI, their solar thermal R&D portfolio focuses on advancements of traditional lower-temperature solar thermal (less than 200°F) for hot water or space heating, and newer higher-temperature (over 200°F) systems that can be used for steam generation, absorption cooling, process heating, and other value-added uses.

“Solar thermal water heating technology has been around for more than a century,” said Liss. “However, innovative processes are breathing new life into this technology. When coupled with the most advanced natural gas water heating systems and the latest computer controls, new solar thermal energy solutions are creating a very dynamic and reliable renewable application.”

GTI also notes that advanced “hybrid systems,” which use solar thermal energy along with natural gas or propane, can reduce energy consumption by up to 40 percent including lower capital and installation costs. With sponsorship from Utilization Technology Development, they are developing a residential hybrid-gas solar hot water system that will reduce materials, manufacturing and installation costs. GTI hopes to bring these types of technologies to market soon at a cost-effective price.

Company Announcement, Energy, Solar

Take an Energy Tour in North Dakota

Joanna Schroeder

You don’t hear much about North Dakota, especially about renewable energy. But today, that is changing. One of the top states for wind, they are inviting people to take an “energy tour” through North Dakota. The tour begins with a look at its oil shale production capabilities (and you thought oil shale was only for Canada). The Wall Street Journal recently featured the state’s oil exploration efforts to cultivate more than an estimated 4 billion barrels of oil underneath the Baaken shale.

In addition to this project, the tour may stop at three other locations including a North Dakota wind farm. As of the end of 2009, the state broke in to the Top 10 Wind Producing States with its 6,500 MW of current production with another 6,500 MW planned. LM Glasfiber and DMI Industries are two companies that recently committed to wind projects in North Dakota.

Next, you may check out the Great Plains Synfuels Plant located in Beulah. According to the company, it is the only commercial-scale coal gasification plant that produces synthetic natural gas from coal in North America. By selling its CO2, captured as a byproduct of production, the sales are estimated to be as much at $30 million each year.

Finally, you may stop at Great River Energy’s Blue Flint Ethanol plant located at Coal Creek Station. Coal Creek Station is the state’s largest power plant using 22,000 tons of coal each day. Sited next to the plant is the Blue Flint Ethanol plant that produces 50 million gallons of ethanol per year and utilizes the waste heat from the coal plant for production.

Energy, Ethanol, Wind

USDA Guarantees Loan for GA Wood Ethanol Plant

Cindy Zimmerman

Range FuelsA Colorado-based firm with a planned biorefinery located near Soperton, Georgia is the recipient of a loan guaranteed by USDA Rural Development to make cellulosic biofuel from wood chips, according to a USDA announcement. The finalized deal with Range Fuels was first announced last year and represents the first ever loan guarantee by USDA to a commercial-scale cellulosic biofuel plant. This project is expected to provide biorefinery jobs, construction jobs and support the timber industry.

USDA“USDA’s investment in the construction of Range Fuels’ commercial facility, which will produce cellulosic biofuel from non-food biomass, such as wood chips, demonstrates the Obama Administration’s goal to make the United States a leader in renewable energy production and furthers the President’s ongoing efforts to bring jobs to rural communities,” said Under Secretary for Rural Development Dallas Tonsager. “USDA is proud to work with the lender and the private sector to bring economic opportunity to rural areas.”

The $80 million loan, being made by AgSouth Farm Credit to Range Fuels, Inc., is being guaranteed through USDA’s Biorefinery Assistance Program authorized by the Food, Conservation, and Energy Act of 2008 and administered by USDA Rural Development. When fully operational, the plant is expected to produce an estimated 20 million gallons of cellulosic ethanol per year. USDA announced a conditional commitment to provide the loan guarantee for Range Fuels in January, 2009.

Cellulosic, Ethanol, Ethanol News, USDA