Biodiesel Tax Credit Passes House, On to Senate

John Davis

USCapitolA crucial tax break for the biodiesel industry has passed the U.S. House but is still a ways from being renewed.

The Hill.com reports that the $1-per-gallon tax credit for biodiesel, set to expire in just a few weeks on Dec. 31, won House approval, 241-181, but the $31 billion package still must make it through the U.S. Senate. The approval comes on the heels of the National Biodiesel Board’s warning that letting the incentive die would be disastrous for an already troubled industry.

The report notes that the industry is already producing far below its capacity, and has been hit hard by volatile commodity prices and weakened fuel demand caused by the economic downturn.

Total sales this year are projected to be 31 percent below 2008 levels, the trade group said. “Elimination of the tax credit will essentially erase all profitability in the biodiesel industry leading to a complete decline in output, expenditures, and jobs,” the report states.

You can read the NBB’s report here.

Biodiesel

Movie Review – Gas Hole

Joanna Schroeder

gashole_poster_small-301x454My eyes are still a bit fuzzy from all the reading I did last week so last night in honor of all of those snowed in in the Midwest, I watched a documentary – Gas Hole. As the title indicates, this movie is about America’s dependence on oil. Beginning in the 1970s during the first oil crisis to now, it details our country’s attempts to unsuccessfully shed itself of its addiction to foreign oil.

It baffles my mind, as I’m sure it does your mind, that with all our alternatives and technology, we can’t seem to make any headway towards a country not dependent on fossil fuel based energy. “We do not have a national energy policy that fits the 21st century,” said Rep. Anna Eshoo, D-California.

The movie is ripe with conspiracy theories as told by politicians, celebrities, alternative energy enthusiasts and witnesses. One of the main threads of the film is the invention of the “Oglemobile,” a car that could achieve nearly 100 miles per gallon (mpg) on vapor. The inventor was a man by the name of Tom Ogle who lived in El Paso, Texas. This feat was achieved in 1977. Ultimately he sold the patent, was told he could never produce another vehicle using the technology, and then died shortly thereafter under mysterious circumstances.

According to the movie, Shell was behind another of the conspiracies to keep fuel economy technology out of the marketplace. A former shell researcher noted that fuel economy testing began in 1939 with a car that could achieve 40-50 mpg and by 1977 and broken the 1,000 mpg barrier. The narration asks, “What have we been doing while scientists have been getting 1,000 miles per gallon?”

That is a good question. Although this movie is a little slow-moving, for those people who want to know the answer to the posed question, this is a film to be reckoned with.

I’ll leave you with the words of Eshoo, “It’s not enough to say something. We have to do something.”

book reviews, Energy

Ethanol Producer Emerges from Bankrupcy

prairielandcoopGood news for a Steamboat Rock, Iowa ethanol plant! As a follow-up post from last week, the bankruptcy court has authorized a Plan of Reorganization of Pine Lake Ethanol Corn Processors and will allow Prairie Land Cooperative to take ownership of the plant.

Last month, the ethanol plant prepared this Plan of Reorganization that and was approved by their creditors last Friday. According to Pine Lake’s press release, the creditor Prairie Land Cooperative will take equity in the plant in lieu of a payment which totaled more than $14 million dollars. Prairie Land Cooperative will own approximately 85% of the reorganized company. Subsequent negotiations with the plant’s secured lenders, its largest unsecured creditor and its ethanol marketing company, resulted in a consensual plan, with all classes who were entitled to vote approving the Plan by the confirmation hearing. Pursuant to these negotiations, Pine Lake’s secured lenders agreed to a restructuring of their debt, which totaled approximately $14.5 million dollars. The smallest creditors will be paid in full and the remaining creditors will be paid thirty cents to the dollar over the next five years.

Pine Lake filed Chapter 11 Bankrupcy just one year ago. Scott Zabler, General Manager, stated, “We are very pleased that we were able to turn the plant around in exactly one year and are very optimistic that with the terms worked out with our major lenders that the plant will be profitable and on a solid financial footing. I am especially proud of our employees who stood by us through some grim months in 2008 and pitched together to make this turnaround a success.”

The turnover in ownership will take place on December 23, 2009.

Ethanol, Ethanol News, News

Novozymes & PRAJ Partner on Advanced Biofuels

Joanna Schroeder

Novozymes and PRAJ Industries Ltd have signed a contract to collaborate on the development of advanced biofuels. Together the two companies will optimize the enzymatic hydrolysis processes and use of enzymes in the production of advanced biofuels. The two companies have a history or working together and for several years have been focusing on conventional biofuels.

According to Novozymes, India and other countries that have been working to develop and deploy biofuel will see clear benefits – from job creation in rural areas to improved energy security. And the world as a whole will benefit from significantly reduced CO2 emissions in the transport sector, which is currently the second-largest and fastest growing source of CO2 emissions.

The collaboration agreement was signed in Copenhagen by Pramod Chaudhari, Chairman of PRAJ, and Steen Riisgaard, President & CEO of Novozymes A/S, to mark the Climate Change Summit in Copenhagen. On Monday, Novozymes announced that 150 VIP limos were running on ethanol produced from straw.

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biofuels, Company Announcement, News

World Biofuels Reduced Global GHGs 123.5M Tons

Joanna Schroeder

grfa_logo_bgA new study shows that world biofuels production in 2009 has reduced GHG emissions by 123.5 million tons. The figure represents an average reduction of 57 percent compared to the emissions that would have occurred from the production and use of equal quantities of petroleum fuels. The report was prepared by (S&T)² Consultants Inc.

Bliss Baker, spokesperson for the Global Renewable Fuels Alliance who commissioned the report noted, “This landmark report proves yet again that biofuels production and use is already playing a vital, yet too often overlooked, role in reducing harmful GHG emissions around the globe. In light of the ongoing United Nations Framework Convention on Climate Change Conference in Copenhagen, today’s report is evidence that biofuels are and must continue to be on the front line of the Climate Change fight.”

The report also discovered that worldwide biofuels produced in 2009 is displacing 1.15 million barrels of crude oil per day, which creates around 215 million tonnes of GHG emissions annually. In addition, worldwide production of approximately 19 billion gallons reduces GHG emissions by 87.6 million tons.

Forecasted global production of biodiesel of approximately 4 billion gallons will reduce GHG emissions by 35.9 million tons. When you combine the worldwide production numbers of both ethanol and biodiesel, the fuels are estimated to reduced GHG emissions by 123.5 million tons.

The study utilized a “life cycle assessment” (LCA) approach to estimate global GHG emissions reduction achieved through the production and use of biofuels from “cradle-to-grave”, including the acquisition of raw materials, manufacture, transport, use, maintenance and final disposal. You can download the full report here.

Biodiesel, biofuels, Ethanol, global warming

Biodiesel Giant Awards Scholarship

John Davis

herobxlogo1The nation’s biggest biodiesel is making a student’s Christmas a bit greener.

HERO BX has awarded Erie, Pa. native Katherine Tarr, a $1,000 scholarship. This company press release says the award was given in conjunction with the Erie movie premier of the Sundance Film Festival award winning film, FUEL:

HeroBXLKosarKTarr1“I’m really grateful for the scholarship,” said Tarr, who will graduate from Gannon University next spring with a Masters of Education in Curriculum and Instruction. She noted that the film had a major impact on her, especially as an educator. “It’s interesting. I’m in education and didn’t realize that you could put biodiesel in your car if you have a diesel engine. This just demonstrates the need for more information, especially targeted at students. I don’t think they realize we’re running out of fossil fuels and I want to be able to tell my students that biodiesel is an available option.”

Last December, as part of the Energy Bill, the federal government dedicated $125 million dollars per year to funding green job training programs. Of that, $20 million is allocated for renewable energy and energy efficiency research.

“HERO BX is on the forefront of developing new technologies to efficiently and affordably produce biofuels,” said Leonard Kosar, HERO BX CEO. “Having team members trained for these types of green jobs is an essential component of HERO BX’s success and to the success of our country’s efforts to become energy secure and sustainable. That is why we understand that supporting educational efforts are critical.”

Tarr says she’s considering a diesel as her next car so she can fill the tank with locally produced biodiesel.

Biodiesel

World Biofuels Markets Announces Speakers

Joanna Schroeder

WorldBiofuelsConfLogoIt’s never too early to start planning your 2010 conference schedule and here is one to consider: World Biofuels Markets. This is Europe’s largest biofuels conference and so far, 20 of the 50 companies who were named to Biofuels Digest’s “Top 50 Hottest Companies in Bioenergy” will be participating.

Last year several hundred people were on hand and this year more even more are expected due to the recent policies passed in the U.S. including the announcement on Monday that the EPA has designated greenhouse gas pollution as a threat to society.

In part, the conference will consist of a series of focused sessions that cover topics from energy crops, to algae fuels, biofuels for aviation, policy, sustainability, biofuels from waste, and more. More than 200 people will be presenting during the conference. Keynote speakers include:

  • • Dr. Gro Harlem Brundtland, former Prime Minister of Norway, former Head of the World Health Organisation
    • Nobuo Tanaka, Executive Director, International Energy Agency
    • Philip New, Chief Executive Officer, BP Biofuels
    • Jan Ernst de Groot, Managing Director, KLM Royal Dutch Airlines
    • Suani Coelho, Executive Director, CENBIO, UN Advisory Group on Energy and Climate Change & IRENA
    • Karl Watkin, MBE, Bioenergy Pioneer & Founder, D1 Oils & former Chair Bioenergy Advisory Board, UN Foundation
    • Peder Holk, Nielsen, Executive Vice President, Novozymes
    • Andrew Owens, Chief Executive Officer, Greenergy

Registrations incentives are available. Click here for more information about the World Biofuels Markets conference.

algae, Biodiesel, biofuels, conferences, Ethanol

Are You Biotech?

Joanna Schroeder

The biotech industry would like you to become ‘biotech’. Biotechnology has been responsible for bringing many things to the world including vaccines, cures for cancers, and better ways to grow our food. It is also responsible for developing the natural enzymes that are being used to help spur the growth in the biofuels industry. Enzymes are better for the environment, more efficient and help to lower the costs of producing biofuels, this according to an Industrial Enzymes video segment I just watched that featured the biofuels work of Novozymes. Apparently, this is to be a topic of interest during the Copenhagen Climate Conference.

Today, the Biotechnology Industry Association is asking people to join their “I Am Biotech” movement.  If you join the online biotech community, you will be entered for a chance to win free roundtrip airfare and a complimentary registration to the 2010 BIO International Convention in Chicago.

The site offers insights on the direction of the industry from top CEO’s and thought leaders, networking opportunities, legislative updates, research updates and more. To learn more go to: www.IAmBiotech.org/join.

biofuels, Biotech, conferences, Video

Coalition Seeks Ethanol Blender Pump Tax Fix

Cindy Zimmerman

A broad coalition of companies and organizations have signed on to a letter asking Congressional tax writers to fix a program intended to promote the installation of fuel pumps that dispense mid- and high-level ethanol blends.

Growth EnergyGrowth Energy CEO Tom Buis sent the letter to the chairmen and ranking members of the Senate Finance Committee and the House Ways and Means Committee, along with the support of 152 companies and organizations, from ethanol plants to public policy advocates. The coalition includes ethanol and clean air organizations, state and national agricultural groups, petroleum marketers, and manufacturing companies.

The letter requests that Congress adopt a technical amendment that would direct the Internal Revenue Service to allow petroleum retailers to receive tax credits up to $50,000, or 50 percent of the total cost of installing alternative fuel dispensing systems, such as ethanol blender pumps. An earlier IRS decision left retailers unable to take the full tax credit.

“When Congress passed the tax credit, it was to ensure support for installing pumps that carry renewable, sustainable fuels like ethanol. But this IRS interpretation is blocking petroleum retailers from obtaining the full amount they are due, as intended by Congress,” Buis said. “Today we have the support of 152 separate groups and organizations from around the country, stating they agree with Growth Energy that Congress should fix the tax credit so IRS will administer the tax credit as intended.”

Read the letter here.

Ethanol, Growth Energy

11 Good’s G2 Diesel Plant Opens

Joanna Schroeder

According to a new report by the National Biodiesel Board that studies the positive effect of the tax credit, “The ailing U.S. biodiesel industry is producing at 15% of its potential capacity.” It argues that if the federal government does not extend the tax credit, set to expire on Dec. 31, 2009, the entire industry could “cease altogether.” This year, U.S. biodiesel numbers are expected to drop 31% to 475 million gallons.

logo-11goodenergyBut amid the industry uncertainty, some good news. Good Energy, Inc., based in Magnolia, Ohio, has opened their G2 Diesel plant. The plant has the capacity of 16,500,000 gallons per year. G2 Diesel is 11 Good’s proprietary fuel made from nearly 99% natural and renewable ingredients. G2 Diesel is primarily made from a logo-dieselblend of soybean oil and ethanol. According to the company, G2 Diesel has shown an increase in fuel efficiency and horsepower, while lower emissions and maintenance costs and can be used in conjunction with #2 diesel in any diesel engine application.

“We are very pleased with the progress of our company as we accomplish this major milestone,” said 11 Good’s CEO, Frederick C. Berndt. “This will allow our company to serve our current customer base as well as allow our fuel to be tested and integrated throughout North America.

Biodiesel, Company Announcement, News