Iowa Biodiesel Mandate Dies, But Could Be Reborn

John Davis

A proposal to mandate a 5 percent biodiesel blend in every gallon of diesel sold in Iowa has died in one legislative committee … but could be reborn in another.

The Fort Dodge (IA) Messenger reports that the House environmental protection committee’s ranking member, Rep. Steve Olson, R-DeWitt, declared the bill dead:

Olson said the GOP caucus was opposed to the bill because it opposed mandates. However, even though the bill died in one committee, it could be revived in another or amended into another bill before the session ends, he said.

Rep. Gary Worthan, R-Storm Lake, who is the ranking member of the House ag committee and also sits on the transportation committee, heard both days’ testimony and said that although he is opposed to mandates in general, Iowa may have to mandate 5 percent blended biodiesel in order to save the industry.

”Right now biodiesel is where ethanol was 15 years ago,” Worthan said. ”There’s no market access for it.” He said he fears that what happened in 2009 with petroleum refiners purchasing failing ethanol plants for pennies on the dollar, may happen soon with biodiesel plants unless they can get a strong financial footing.

Worthan added that biodiesel blends are more uniform than in the past to meet federal standards, and that should make the green fuel more attractive than years ago when standards were a bit looser.

Biodiesel, Government, Legislation

Lambright Joins Algae-Biofuel Maker Sapphire

John Davis

The former head of the U.S. Export-Import Bank and Chief Investment Officer of the U.S. Treasury Department’s Troubled Asset Relief Program (TARP) is bringing his copious financial knowledge to algae-biofuels producer Sapphire Energy.

This company press release says James Lambright will also head Sapphire’s international expansion efforts:

A respected leader in the private and public financial sectors, Lambright rounds out an already impressive leadership team, which, since 2008, has focused its efforts on producing a scalable, renewable, low carbon liquid transportation fuel from algae, sunlight and CO2.

In this newly created role, Lambright will expand Sapphire’s presence in international markets where, just like America, complex energy needs dominate the agenda.

“No matter the issue – climate change, national energy security, or job creation – Sapphire Energy is poised with a solution – Green Crude,” says Jason Pyle, CEO of Sapphire Energy. “We have unequaled expertise in science, energy, and transportation. And now with Jim on board, we’ve added a depth of international markets and finance experience unmatched in our industry. That, plus the recent federal funding award and our healthy independent investment funds, positions Sapphire well down the path to make Green Crude commercial-ready.”

Lambright adds that he is excited to join Sapphire Energy, and it is the perfect place to help address the most complex challenges facing economies around the world: energy security and the environment.

algae, biofuels

2009 Sets Record Ethanol Production

Cindy Zimmerman

Despite a sluggish economy and challenging growing conditions for corn farmers, ethanol production set a record once again in 2009 of more than 10.75 billion gallons.

Renewable Fuels Association LogoAccording to the latest statitstics from the U.S. Energy Information Administration (EIA), ethanol production reached yet another all time high in December 2009 at 787,000 barrels per day, even though ethanol demand, as calculated by the Renewable Fuels Association (RFA), fell to 750,000 b/d in December.

“Despite trying economic circumstances, America’s ethanol producers once again rose up to meet the challenges the nation has put before it,” said RFA President Bob Dinneen. “Moving forward, once-idled facilities are restarting and new biorefineries are coming online to ensure that the volumes of ethanol called for in the Renewable Fuels Standard are met by domestic supplies.”

Ethanol, Ethanol News, RFA

Verenium and BP Extend Agreement Again

Cindy Zimmerman

VereniumBPVerenium and BP are continuing to work on a month to month basis toward the development and commercialization of cellulosic ethanol.

The two companies today announced another month long extension to the initial 18-month joint development program established in August 2008. The previous extension to the agreement ended today, now it will continue until April 1, 2010 as the parties continue negotiations for a longer-term collaboration. In the meantime, Verenium gets another $2.5 million from BP to co-fund the cellulosic ethanol program for the month of March.

Cellulosic, Ethanol, Ethanol News

Poplar Could be Ethanol Feedstock

Cindy Zimmerman

Poplar trees could get more popular if they prove to be the next big ethanol feedstock.

A team of researchers at the University of Maryland, College Park, and Bowie State University is working on ways to use the hybrid trees to make ethanol and other biofuels, since they could be grown on plantations and harvested without affecting existing woodlands. Poplar, which is also known as cottonwood or aspen, is already commonly cultivated for the production of paper and timber.

The study is funded by a $3.2 million, four-year grant from the National Science Foundation’s Plant Genome Research Project, which supports research on plants seen as having economic and agricultural importance. Using the recently completed poplar genome, the researchers are focusing on ways to improve the tree’s nitrogen processing capability, which will enhance its growth rate and feasibility for use in fuel production.

Cellulosic, Ethanol, Ethanol News, University

E85 Infrastructure Legislation Supported in Indiana

E85 infrastructure legislation that will extend grants of $100,000 up to 50% is one step closer to being a reality. According to BrighterEnergy.org, House Bill 1261 was voted through without opposition in the Indiana state Senate.

The “Agricultural Biomass Infrastructure Grant Fund” now will return to the state’s House of Representatives for consideration. The grant will extend the eligibility of governments, retailers, school corporations and state universities to tale advanatage of this funding.

State Senator Sue Errington (D-Muncie), one of the sponsors of the Bill, said: “Biomass and biofuels are going to be an important part of our future energy market. This bill gives biomass producers the tools they need to build and expand the infrastructure required to deliver these renewable energy products.”

“By opening up more grant opportunities, we can encourage further development and use of alternative energy in Indiana,” State Sen. Stutzman said. “With today’s vote, the Senate helped move our state toward greater energy independence.”

The state of Indiana currently has 129 E85 refueling locations.

E85, Ethanol, News

Ethanol Pipeline No Longer Pipe Dream

Cindy Zimmerman

Kinder Morgan is getting ethanol moving through the pipeline.

Those attending the Renewable Fuels Association 15th annual National Ethanol Conference in Orlando last month had the opportunity to see the Kinder Morgan terminal in Orlando and hear about the first pipeline in the country to provide commercial ethanol deliveries. “We now have the capability of handling 100 percent of the greater Orlando demand for ethanol by pipeline,” said Jim Lelio, Director of Business Development for Kinder Morgan Energy Partners.

Florida’s E10 market penetration has increased rapidly in just two short years, moving from virtually nothing at the end of 2007 to almost 100 percent at the end of 2009. The 104 mile Central Florida pipeline, in operation since December 2008, is the only pipeline currently moving commercial ethanol batches to supply major U.S. markets. “Our number one concern is the integrity of that pipeline and maintaining safety of it. We have had no signs of corrosion during comprehensive testing,” Lelio said. “We proved it’s possible and now we are gaining in confidence and looking at different pipelines.” That includes the Plantation Pipe Line from Louisiana to Virginia.

Last year, Kinder Morgan handled nearly 30 percent of total U.S. demand for ethanol, or about 83 million barrels, and this year that is expected to increase to 95 million. The company is the largest independent transporter of petroleum products in the nation, transporting more than 2 million barrels per day.

Listen to or download Jim Lelio’s presentation from the 2010 NEC here:

Audio, Ethanol, Ethanol News, National Ethanol Conference, RFA

Ethanol Issues Top Corn Grower Concerns

Cindy Zimmerman

Ethanol related issues top the list of concerns for members of the National Corn Growers Association (NCGA) preparing for their annual policy meeting ti be held this week in Anaheim as part of the 2010 Commodity Classic.

NCGA president Darrin Ihnen, a corn grower from South Dakota, says among those concerns are the use of indirect land use change in making regulations for low carbon fuels and increasing the allowable blend level for ethanol in gasoline to 15 percent. “The other thing that is looming is tax policy when it comes to the ethanol industry – VEET (volumetric ethanol excise tax credit) and the import tariff,” Ihnen said on a visit last week to the Missouri Corn Growers Association annual meeting. “Those will definitely bring a lot of discussion in our resolution sessions and our policy decision making.”

Corn growers are also concerned about the threat posed to animal agriculture in individual states by activist groups, which affects them on two levels. “Number one, the livestock industry is our largest user of corn,” Ihnen says. “The second thing is that we supply a lot of corn to the ethanol industry, which produces DDGs, which comes back to the livestock industry.”

Ihnen sees the animal activist threat as a unifying issue for the agriculture industry, which is sometimes divided when it comes to ethanol. “We can’t be separated when it comes to agriculture,” he said. “We need to work together.”

Listen to or download my interview with Darrin Ihnen here.

Audio, corn, Ethanol, Ethanol News, Farming, NCGA

Petroleum Company Buying Indiana Biodiesel Plant

John Davis

Indiana-based e-biofuels, LLC is being sold to Imperial Petroleum, Inc.

This press release posted on MarketWatch.com says Imperial will keep on e-biofuels principal management and make the 15-million-gallon-a-year biodiesel maker a wholly-owned subsidiary of Imperial:

“We’re very excited about e-biofuels and its management joining our Company,” said Jeffrey T. Wilson, President of Imperial. “Through our research and development efforts over the last four years in the biofuels arena, we have developed some ground-breaking patented and proprietary process technology for the manufacture of biodiesel from waste oils high in free fatty acids and for the manufacture of bio-based jet fuels. We believe our processes will significantly improve the economics of the e-biofuels plant. In addition, we have developed processes to produce renewable fuels that reduce harmful emissions when burned in boilers and stationary power generation equipment and we plan to enhance the e-biofuels operations with the addition of these products at that plant.

Imperial is also planning on $15 million in enhancements and expansions to the plant.

Biodiesel

Ford Unveils Biodiesel-Compatible F-Series Truck

John Davis

The new Ford F-Series Super Duty truck will be able to run on a 20 percent blend of biodiesel.

This article from Fleet Owner says the 2011 model year also features an optional Ford-designed and built 6.7-liter Power Stroke V-8 turbodiesel rated at 390 hp and 735 ft-lbs torque … making green and mean:

Ed Waszczenko, Ford lead engine durability engineer, noted that B20 biodiesel compatibility is being added for the 2011 model year. That means the new 6.7-liter Power Stroke can be operated on a biodiesel blend of 20% biodiesel and 80% regular petroleum diesel.

According to Waszczenko, the new turbodiesel boasts an average 18% improvement in fuel economy for pickup models and an up to 25% improvement for chassis cabs vs. 2010 Super-duty models, In addition, he said trucks equipped with Ford’s new 6.2-liter V-8 gasoline engines will deliver an average 15% fuel economy improvement over the OEM’s comparable 2010 models.

As you might remember from Chuck’s coverage from the National Biodiesel Conference & Expo, Ford has debuted its B20 Truck Badge.

Biodiesel, Car Makers