Lawmakers to Close Paper Biofuels Loophole

John Davis

USCapitolPaper companies that have been cashing in on an alternative fuels tax credit could soon see that loophole close.

This story from Reuters says lawmakers in the U.S. House of Representatives say they will end those paper companies’ ability to collect a $1-a-gallon tax credit that the companies have getting by adding black liquor, a by-product of producing paper, to a small amount of diesel to claim the money:

Democrats on the tax-writing House Ways and Means Committee propose to close one version of an alternative fuel credit in which companies can claim about a $1 credit per gallon for producing biofuel. By limiting eligibility for the credit, the provision would raise $24 billion over a decade…

The credit used by most companies now expires at the end of this year. The provision closes a more lucrative credit that companies are expected to turn to after the currently used credit expires.

The credits are intended to spur development of biofuels and are being improperly used by paper companies, critics say. So-called black liquor — a byproduct of paper production — is blended with a small amount of diesel fuel to claim the credit, according to Democrats.

Democrats say they will use the money to pay for health care reforms. Paper companies say they can’t collect the second credit anyway, so this is just a way for the Dems to make a money grab for those health care bucks.

biofuels, Government, Legislation

2010 FFV Purchasing Guide Now Available

Cindy Zimmerman

2010 Purchasing Guide coverThe 2010 Flexible Fuel Vehicle (FFV) Purchasing Guide is now available through Growth Energy. The 16-page, full color guide contains detailed information regarding which vehicles are offered to run high level blends of ethanol by automobile manufacturers.

The FFV Purchasing Guide has been available since 2003, offering frequently asked questions regarding high level blends of ethanol and the availability of FFVs. This issue provides all the latest information about 2010 Chrysler, Ford, General Motors, Nissan, Mercedes-Benz and Toyota trucks and cars with E85 compatible engines.

The Purchasing Guides are available in bulk for giveaway items at trade shows or blender pump/E85 station grand opening events. They can be ordered on-line here.

E85, Ethanol, Flex Fuel Vehicles, Growth Energy

TN Legislators May Discontinue Biofuels Project

tn-govAs first reported in the Tennessean.com, state lawmakers say they may remove funding from a project dedicated to the University of Tennessee that will produce ethanol from switchgrass. This news came about after legislators were informed that the school will be doing business with DuPont (a corn based ethanol producer) and scaling down ethanol production. Cost for the government for these changes would increase the project an additional $11 million through June 30, 2013.

“The state is subsidizing DuPont to do all this research. It’s all they’re doing,” said Rep. Curry Todd, R-Collierville. “It’s a sad commentary that we were led down this road by the governor, UT and whoever else was involved in it.”

Originally, as part of the 2007-2008 budget, Tennessee’s Gov. Bredesen asked the legislature to approve a plan to study switchgrass for biofuel production as a way to get Tennessee into the ethanol industry and find a way to produce fuel ethanol cheaper than using corn. The plan also called for paying farmers in the region $1.75 million to grow enough switchgrass to produce as much as 5 million gallons of ethanol annually and create a surplus of jobs in the state.

biofuels, Cellulosic, corn, Ethanol, Ethanol News, News

Highlights from World Ethanol 2009

Cindy Zimmerman

World ethanol supplies may hit a surplus next year, Brazil’s ethanol production and exports will be off due to wet weather, and biobutanol may be in the pipeline by 2013.

That’s just a few of the highlights from F.O. Licht’s World Ethanol 2009 12th annual conference held this week in Paris, France.

F.O. Licht managing director Christoph Berg told attendees at the conference that they are forecasting that global ethanol consumption next year will total 76.4 billion litres, compared to an estimated supply of 77.1 billion. “This would result in a surplus of around 700 million litres which is urgently needed to maintain the supply chain,” he said. However, Berg says global ethanol manufacturing capacity will only increase four percent this year, compared to last year’s increase over 2007 of 33 percent.

There was lots of discussion at the conference about the situation in Brazil, with wet weather crippling sugar cane production this year. UNICA President Marcos Jank reported that Brazilian ethanol production will be down six percent this year and ethanol exports will fall 34 percent.

Philip New, CEO of BP Biofuels, addressed the role of advanced biofuels and how soon we might get there. He noted that BP is working with Verenium on the development commercial production of cellulosic ethanol in the United States, while at the same time planning to produce biobutanol with DuPont in the UK by 2013. “Biobutanol can provide a door through the blend wall which I would argue is the key structural barrier to the growth of this industry over the next five to 10 years,” he told the conference.

Renewable Fuels Association president and CEO Bob Dinneen urged global leaders at the conference to work together for the future of biofuels. “The world ethanol industry must reject all the differences, divisions and diversions. We must come together behind our common agenda, take on our common threats, and put forward our common vision of producing energy, preserving the environment, and promoting economic opportunity for all the people on this planet,” Dinneen said.

Dinneen encouraged the industry to continue fighting the misinformation campaign against ethanol. “The only thing as noxious as the greenhouse gases that are the byproducts of burning petroleum products is the miasma of misinformation that the adversaries of ethanol are emitting. The two most common attacks on ethanol are shameless, senseless, implausible, and illogical,” he said.

World Ethanol 2009 concluded yesterday.

Ethanol News, Ethanol Report, International, RFA

Ride Along With The Cob Harvest

Chuck Zimmerman

I wasn’t the only one shooting video at the POET Project LIBERTY Field Day in Emmetsburg, IA. POET was too for POET TV. POET does a great job of using new media channels to communicate their activities. You can also learn more about the event by seeing their photos online and following along with their Project LIBERTY Blog.

In this video clip you’ll find:

Sitting inside a Claas Lexion 595 Combine as it goes through a corn field collecting corn and corn cobs. The cobs were carried in a Redekop H165 cob collection device towed behind the combine.

biofuels, biomass, corn, Equipment, Ethanol, POET, Video

John Deere Developing Corn Cob Harvest Options

Chuck Zimmerman

POET Project LIBERTY EquipmentThere were 16 different equipment manufacturers involved with POET’s Project LIBERTY Field Day. One of them was John Deere, represented by Dean Acheson, Manager, Solutions Development. Dean says that what they’re working on is completely customer based. He says they don’t want to be slowed down during harvest and they want to keep up a high level of productivity.

The prototype equipment they had on display was a one pass, two stream cob collection system. On the back of their combine they have a new prototype piece of equipment that allows the grain to follow a normal path and the cobs then flow out of an attachment on the back of the combine. He says the equipment allows you some flexibility in how you choose or handle what is being harvested. A wagon is pulled by a tractor alongside the combine to collect the cobs. They’re currently not endorsing the towing of equipment behind their combines but this is equipment that is in development for the future.

You can listen to my interview with Dean below and watch a video clip of their equipment in action.

POET Project LIBERTY Field Day Photo Album

Agribusiness, Audio, biomass, Cellulosic, corn, Equipment, Ethanol, John Deere, POET, Video

POET CEO Talks About Future Of Ethanol

Chuck Zimmerman

I know I posted an interview I did with POET CEO Jeff Broin this week but I also recorded his speech to the attendees at their Project LIBERTY Field Day. I thought you would enjoy hearing what he has to say. He starts out pointing to the RFS as a huge opportunity for the ethanol industry and agriculture. He says that legislation is solid and “there’s no risk of that legislation going away.”

He says there is almost a billion tons of ag residue available as biomass to convert to ethanol. That’s the largest source of biomass available for this purpose. He says it’s a little known fact that “over the next 20 years ethanol can almost replace gasoline.” This can be attributed in part to the projected increases in corn yields in the next 10 years.

POET Project LIBERTY Field Day Photo Album

biomass, corn, Ethanol, POET, Video

Renewable Fuels to be Focus of Minnesota Conference

John Davis

E32009Mark your calendar for Tuesday, November 17th, for what’s being billed as the Midwest’s premier energy, economic and environmental conference. E3 2009 is sponsored by the University of Minnesota and will be held at the St. Paul RiverCentre:

NREL’s Larry Kazmerski, a pioneer in the field of solar photovoltaics, will offer the keynote presentation for this year’s conference. Other highlights include a super panel discussion with national experts, track sessions focused on the big questions of the 21st century, and a series of Green on the Ground workshops.

Hosted annually by the University of Minnesota’s Initiative for Renewable Energy and the Environment, a signature program of the Institute on the Environment, the E3 conference showcases current technologies, environmental benefits and market opportunities in renewable energy.

And for those who have an extra day to spend in the Twin Cities, there is also a separate session on how to build a smart grid coalition on Nov 18th.

conferences

Biodiesel to Haul Capitol XMas Tree from Arizona to DC

John Davis

CapitolChristmasTree2A green fuel will be used to haul the nation’s foremost evergreen cross-country.

This story from The Explorer newspaper out of Tuscon, Arizona says this year’s U.S. Capitol Christmas tree will be hauled from Arizona’s White Mountains to Washington, D.C., all on a truck running on biodiesel:

“We are thrilled to be a part of history, and bringing biodiesel as the fuel of choice into that history,” said Mike Monfred, compliance officer of Southwest Industrial Rigging [the company hauling the tree] in Phoenix.

ARIZONA'S TREE“We are honored to be the first state to deliver the tree in a clean, green manner,” said Richard Davalos, coordinator of the Capitol Christmas Tree. “We are also honored to help promote reducing America’s dependence on foreign oil.”

The Tucson Regional Clean Cities Program at Pima Association of Governments, the National Biodiesel Foundation and Southwest Industrial Rigging are helping Arizona officials in plotting the route to Washington, D.C.

The route will allow for refueling with biodiesel, and public education is planned along the way about the benefits of biodiesel.

“This is a great undertaking, and one that Arizona should be proud of,” said Tom Verry, executive director of the National Biodiesel Foundation.

If you want to be part of this historic biodiesel moment and help pay for the green fuel to haul the tree across the country, contact Clean Cities Manager Colleen Crowninshield at ccrowninshield@pagnet.org.

Biodiesel

BP Looks to Start Ethanol, Biobutanol Production

John Davis

bplogoA major oil producer is looking to get into the biofuels business.

This story from Reuters says BP could start ethanol and biobutanol operations next year:

BP could launch commercial production of grass-based ethanol in the United States in 2010 with partner Verenium, which already has a demonstration cellulosic ethanol facility, Philip New, Chief Executive of BP Biofuels, said.

BP is also planning to launch in 2012/13 commercial output of biobutanol at future biofuel plant in the UK, he said.

The oil company is building a wheat-based ethanol plant near Hull in eastern England in partnership with British Sugar and chemicals group Dupont that is due to come online next year, and plans subsequently to retrofit the facility to convert it to biobutanol output.

The article goes on to say that the plant in England is part of a $200 million BP-Dupont joint research venture.

biobutanol, biofuels, Ethanol, Ethanol News, News