ACE Conference 2026

Baucus, Grassley Vow to Extend Biodiesel Tax Incentive

John Davis

Baucus2Biodiesel producers have seen the last chance at renewing the federal biodiesel tax incentives before they expire at the end of the year slip away. But two key lawmakers have vowed the $1-a-gallon tax credit will be renewed, retroactively.

Sen. Max Baucus (D-MT), chairman of the Senate Finance Committee, and Sen. Charles Grassley (R-IA), Ranking Member of the same committee, say they intend to get the biodiesel tax incentives renewed early next year. The Des Moines (IA) Register has details:

grassley4“These provisions are important to our economy — not only because they help create jobs, but also because they are used to address pressing national concerns,” the senators wrote.

Grassley said taxpayers “need notice that these tax provisions” will be extended next year.

The House recently approved legislation extending the biodiesel subsidy and other expiring tax credits but the Senate took no action on the measures. Republicans objected to including the extensions in a defense bill because it also would have included an estate tax measure to which GOP senators objected, said Grassley.

Some biodiesel producers have said the lapse of the credit could force them to shut down, or at least, make them reduce production.

Biodiesel, Government, Legislation

Hawkeye Energy Files Bankruptcy

hawkeyeUnfortunately, it looks as though another ethanol plant has filed for bankruptcy. Hawkeye Energy currently owns and operates ethanol plants in Iowa Falls and Fairbank, Iowa and has filed for reorganization and Chapter 11 bankruptcy.

Hawkeye Energy Holdings CEO Bruce Rastetter said, “The U.S. biofuels industry is going through a period of historic change and we are taking the necessary steps to position our business units to succeed in a dynamic and sometimes volatile business environment. The ethanol industry was severely affected in 2008 and 2009 by unprecedented volatility in commodity prices and margins. While the market for ethanol has stabilized and financial performance has improved in recent months, it nevertheless became clear that a restructuring of the Renewables unit’s balance sheet would be necessary for the company to compete effectively in the future.”

The Iowa Falls and Fairbank plants, each of which employs about 45 workers, will continue to operate under the current management, said Rastetter. They also will continue to buy corn and will honor forward contracts for purchases of corn from farmers.

Hawkeye said it owes bank debt between $500 million and $1 billion to lenders that took out the loans in 2006 after Hawkeye withdrew a planned initial public stock offering. Against that debt, Hawkeye has about $250 in assets, Rastetter said.

Ethanol, Ethanol News, News

Ethanol Report on E85 GPS Application

Cindy Zimmerman

If Santa is bringing you a new Garmin or TomTom GPS for Christmas, you can use it to find E85 fuel for your Flex Fuel Vehicle (FFV) to get you over the river and through the woods to Grandmother’s house this holiday season.

We’ve already told you about the new applications available from the Renewable Fuels Association (RFA), one for the TomTom and one for the Garmin, both designed to guide FFV owners to E85 stations.

Ethanol Report PodcastIn this holiday edition of “The Ethanol Report,” we hear more details about the apps from RFA Director of Market Development Robert White and what they are working on down the road for other GPS devices and even the iPhone. The available applications can be downloaded now from ChooseEthanol.com.

You can subscribe to this twice monthly podcast by following this link.

Listen to or download the podcast here:

Audio, E85, Ethanol, Ethanol News, Ethanol Report, RFA

South Texas Getting First Biodiesel Terminal

John Davis

GulfHydroCarbonA company that says it is “introducing biodiesel to the petroeum industry” has announced the first biodiesel terminal in South Texas.

This press release posted on EarthTimes.org says Gulf Hydrocarbon will offer biodiesel at the RTW Terminal in Brownsville:

Gulf Hydrocarbon’s new terminal will offer convenient access to biodiesel truck loading rack. This new gateway for US-made biodiesel will offer easy availability and can serve the local and Mexican distribution-based businesses. In addition to truck access, the terminals also marine transport and the Brownsville Rio Grande International Rail Road serves the terminal for an efficient means of rail transportation.

Jess Hewitt, President, Gulf Hydrocarbon is full of optimism about introducing biodiesel to the South Texas market, “With the addition of our South Texas terminal distribution point we can now make biodiesel available to new markets in the Texas valley region, a vast and productive agricultural area, and new markets for renewable fuel in the frontera border states in Mexico. South Texas school buses, farms and industry now have access to a powerful fuel that is green and fights air pollution. These organizations are eligible for state and federal grants that pay for the addition of biodiesel to fleet and school buses who can now use biodiesel to fight harmful diesel particulate emissions. We intend to spend a good deal of time and effort educating related industries about these government incentives and benefits to the environment.”

The release goes on to say that the biodiesel at the RTW terminal will meet all ASTM D6751 standards. If you’d like to find out more, Hewitt will talk about biodiesel, the new Renewable Fuel Standards and the local economic impact at the upcoming 2010 Energy Expo on January 21, 2010 in Brownsville.

Biodiesel

Canada to Test Year-Round Biodiesel

John Davis

SRCThe cold conditions of Canada will put biodiesel to the test as our friends north of the border take part in a year-long test of the green fuel.

This story on the Canada Views Web site says the Saskatchewan Research Council (SRC) is getting more than $750,000 to see how well biodiesel will work in agricultural equipment, including the coldest months in one of the world’s coldest areas:

During the year-long project, eight agriculture producers will operate their equipment using low-level (B5) and high-level (B10) canola-biodiesel blends to determine whether they affect engine performance. Five producers will operate year-round on a B5 blend, while three others will use a B10 blend during warmer months and a B5 blend the rest of the year.

As part of the study, SRC will evaluate approximately 50 tractors, combines, swathers and related farm fuel storage tanks. Biodiesel quality will be closely monitored and evaluated to ensure that the fuel maintains adequate quality throughout the year-round farming cycle. Fuel testing will be conducted at the SRC Biofuels Test CentreTM in Regina.

Hopefully, by this time next year, there should be lots of good information on how to successfully blend, handle and store biodiesel blends in the coldest of climates.

Biodiesel

Making Biodiesel and “Things”

John Davis

EstillI found an interesting piece by Lyle Estill, a founder of Piedmont Biofuels … a Pittsboro, North Carolina-based maker of biodiesel and other “things.”

Estill’s column in the Chapel Hill (NC) News is really good piece that not only talks about his little biodiesel company’s resilience in the face of a tough market, but also of the principles his blue-collar father taught him about American industry:

PiedmontBiofuelsBy the summer of 2009 the biodiesel industry was on the ropes. Feedstocks were too expensive to be used for fuel.

One of our welders, Rick, said, “Hell, we should just make things.”

And that seemed like a good idea.

Nowadays we don’t just make biodiesel. We also make worm bins for vermiculture systems, and we make rain water delivery systems out of scrap, and we make containers for square foot gardeners, and we make boiler fuel out of free fatty acids, and we build custom boiler systems, and we make seed crushing systems that extract oil, which means we also make animal feed.

I really liked Estill’s perspective at the end of the column, where he talked about being back in the manufacturing business … even if it’s not biodiesel:

There was a time when the only thing that shipped from the plant was biodiesel. These days there is no telling what is on the truck.

But it feels good to be making things again. It even smells good.

Good attitude.

Biodiesel, Opinion

USDA & EPA Called to Update Climate Change Analysis

John Davis

ChamblissLucasQuestions by the Secretary of Agriculture himself about the USDA’s and EPA’s climate change analysis has prompted the two ranking members of the U.S. Senate and House Ag Committees to ask questions as well.

U.S. Senator Saxby Chambliss (R-Ga.) and U.S. Representative Frank Lucas (R-Okla.) have sent a letter to Secretary Tom Vilsack, asking him about his apparent lack of confidence in the modeling used by both USDA and EPA. They’d also like to see Vilsack on Capitol Hill and ask him about the impact cap and trade legislation would have on the agriculture and biofuels sector:

The Department’s testimony delivered earlier this month to the House Agriculture Committee is clear and unequivocal; agriculture will undergo significant structural impacts that will change how food, feed, fiber and fuel are produced in the United States. The disappearance of 59 million acres of cropland, higher food prices and lower exports will undoubtedly shape how farmers and ranchers make a living in the years ahead. While we can disagree on policy, we cannot ignore the facts when they are inconvenient to our preferred narrative.

In light of your critique of USDA’s analysis, we respectfully request your office consult with the EPA and report to the House and Senate Agriculture Committees on the problems with the economic model in order to reflect realistic scenarios while examining the impact of cap and trade on the agriculture and forestry sectors. Moving forward with flawed studies will only result in bad policy and legislation.

You can read USDA’s analysis on cap and trade here.

Government, USDA

Nebraska Produces Record Amount of Ethanol

ne-ethanol-brdOver 127 million gallons of ethanol was produced in the state of Nebraska in September; a record high for the state and an increase of 8.6% since 2008.

According to a press release issued by the Nebraska Ethanol Board, Todd Sneller, administrator of the group said the increase in ethanol production proves ethanol’s long-term economic viability. “Ethanol plants have increased production levels and several idle plants have commenced operation under new ownership,” said Sneller. “The continued economic impact of ethanol production helps diversify and sustain Nebraska’s economy.”

Nebraska ranks second in ethanol production throughout the U.S. The state uses ethanol in nearly 70 percent of its motor fuel in the state and they generate millions of dollars in by exporting the domestically grown product.

“Nebraska’s ethanol plants continue to generate a variety of important economic benefits. The production of feed, food and fuel from corn helps to stimulate the agricultural sector in Nebraska while creating more than 1,000 jobs for Nebraskans and lowering the cost of gas. Ethanol benefits all Nebraskans, and it’s here to stay,” Sneller said.

corn, Ethanol, Ethanol News, News

Ethanol Buses Gaining Ground in Sao Paulo

Joanna Schroeder

EthanolBusEthanol-powered buses are gaining ground in Sao Paulo, the largest city in Brazil. While it is unusual to see ethanol used in replacement of diesel fuel in diesel engines in the States, it is not so uncommon in other areas. In 1993, a group of companies began working together to discover a solution for mass transport and its relationship to global warming. The result was the Bio Ethanol Sustainable Transport Project (BEST) which includes more than 600 buses that have been converted to run on 95 percent ethanol.  Of the total number, 400 of them are in Stockholm.

The program has been in effect in Sao Paulo Brazil since 2007 and while I was there last month, I had the opportunity to ride one of the brand new buses. There are quite a few players in this project – the National Biomass Reference Center, University of Sao Paulo’s Electro-Technical and Energy Institute, and UNICA, the Brazilian Sugarcane Industry Association, among others.

EthanolBusEngineThe bus is equipped with a 15 m Scania chassis, has a 9 liter, 270 hp engine that is fueled with 95 percent ethanol and a 5 percent  ignition promoter additive and a compression ratio of 28:1. (The most common compression ratio is 18:1.) The emissions meet the European Union’s standards, EURO 5, as well as the Enhanced Environmentally Friendly Vehicles (EEV) standards. The Cosan Group is providing all the ethanol used in the two operational buses.

While the BEST project is still a pilot program in Sao Paulo, the demand for the buses is growing due to the Climate Change Law of Sao Paulo City that was passed. This law states that all bus fleets must run on renewable sources by 2018. The city mayor recently announced a goal to have 200 buses running in the short term with a full conversion to ethanol by 2019, a tad past the deadline set by the city; however, theoretically, within 10 years, there will be no diesel buses running in Sao Paulo. This is achievable in that there is another law that requires all buses to be retired every 10 years.

UNICA is hoping other metropolitan areas adopt Sao Paulo’s legislation and there are talks with the city of Rio to bring in ethanol buses as they prepare to host the 2016 Olympic games.

You can see more pictures of the ethanol buses in my photo album.

Environment, Ethanol, International

Grease Trap Waste Recycling Plant Begins Production

Joanna Schroeder

Maybe there are some benefits of eating fast food. The first Grease Trap Waste recycling plant in Florida is now in production. Affordable Bio Feedstock, Inc. has developed a brown grease waste recycling plant which turns grease into biofuels. The plant is located in Kissimmee, Florida, also the company’s headquarters, and the company plans on building at least 11 additional plants in Central Florida during the next 14 months. In addition to creating biofuels, the company also converts food solids into fertilizer or animal feedstock.

Remainder Waste After Processing

Remainder Waste After Processing

The company has developed a proprietary and environmentally responsible process for brown grease recycling called Thermal Depolymerization technology, which allows them to separate its contents (oil, organic solids and water) into three commercially marketable products: brown grease, nutrient rich organic solids and nutrient rich water. The plant will process 50,000 gallons of grease trap waste per day.

Grease trap waste is generated in food service establishments (not just fast foods) from fats, oils, and grease in food products and is collected in grease traps and interceptors. For the most part, the waste is being disposed of in landfills at an expense to the restaurant. In addition, the waste can cause sewage overflows costing cities time and money. That is why, says the company, that they have focused on this waste product to produce valuable products such as biofuels.

Ultimately the company will expand its production outside of Florida and into the Southwest. It looks like biodiesel enthusiasts may have some competition on their hands.

biofuels, Energy