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

Solar Industry Shines Despite Minimal Support

Joanna Schroeder

solarpowergenconflogoThere are three major hurdles facing the solar industry today: lack of long-term uninterrupted government support, lack of government and private investment capital and difficulty with project permitting. People interested in the solar industry can learn how to clear these hurdles by attending the Solar Power Generation USA conference, being held in Las Vegas, Nevada January 20-21, 2010.

“The solar industry in the United States has faced numerous tectonic shifts in support of solar energy. Today, the shift is in favor of the solar industry moved by the need for the country to find ways to reduce its dependence on fossil fuel based energy sources,” said Sarah Ellis, Managing Director, Green Power Conferences. “With this new fast-paced movement, companies must learn how to capitalize on the opportunities in front of them.”

The goal of this conference is to help companies develop successful utility scale solar projects. One area in particular that companies struggle with is understanding the key environmental, land use and permitting issues.

With the recent influx of funds, The Bureau of Land Management (BLM) has received a large number of proposed applications for renewable energy projects. “We have responded by partnering with the Department of Energy on the Solar PEIS, by working through the Federal budget cycle to fund Renewable Energy Coordination Offices and renewable energy related positions, and by developing a coordinated, focused effort to move projects through the environmental review and permitting process more quickly but without taking shortcuts,” said Mike Nedd, Assistant Director – Minerals and Realty Management with the BLM.

Nedd is just one of dozens of insightful speakers scheduled. For a full list of speakers and to register, visit www.solarpowercongress.com. Enter code 4RC-201 for 20 percent off the current registration rate.

conferences, Solar

RFA Applauds Restoration of Biofuel Loan Funds

Joanna Schroeder

The biofuels industry received an early holiday present yesterday when the House of Representatives voted to restore $2 billion to the alternative loan guarantee program that was borrowed to fund the Cash for Clunkers program.

However the Renewable Fuels Association (RFA), while pleased to see the funds returned, noted that this is just one step among many that are needed to support the industry. “This is an important step and one the Senate should replicate as soon as possible,” said RFA President Bob Dinneen. “Restoring these funds is just the first step. Making sure the shovel-ready advanced biofuel projects can gain access to these loan guarantees is vital for them to begin construction and production commercial volumes of next generation renewable fuels.”

rfa-logo-091RFA is concerned that the funds will not be used to further the energy, economic and environmental goals of the United States. During COP15, Obama is expected to announce the country’s goal of reducing greenhouse gas emissions 17 percent. Specifically, the RFA noted in a letter to the Department of Energy in October that the loan guarantee program was being crafted in a manner making it extraordinarily and unnecessarily difficult for advanced biofuel companies to secure the guarantees.

In a letter Dinneen wrote earlier this year he stated, “A fundamental flaw of the loan guarantee program is that DOE is weighing the applications of emerging technology projects such as cellulosic ethanol using the same criteria as mature technology projects, and against more mature technologies, such as wind and solar, that have been commercialized in other countries. The challenges facing next generation advanced biofuels are simply much different than those of the renewable power sector.”

Dinneen stresses the importance of focusing support on already proven technologies and those advanced biofuels technologies that are close to the finish line in lieu of not-yet proven and may never make it to market technologies.

“Under the worst case scenarios of the U.S. Environmental Protection Agency, ethanol production today is meeting the GHG reduction goal the President will announce to much fanfare. Providing security to advanced biofuel companies in this tumultuous investment climate through loan guarantees ensures that America’s biofuels industry can continue to do its part and more in the battle against climate change. Allowing these technologies to wither on the vine is not an option,” concluded Dinneen.

biofuels, Ethanol, Ethanol News, RFA

NE Family Wins Growth Energy Ford FFV

Cindy Zimmerman

A Nebraska family has been named the lucky winners of a flex fuel (FFV) Ford F150 from Growth Energy.

truckgiveawayRoger and Margie Johnson of Exeter, Nebraska (seen far left) were the grand prize winners in the Growth Force sweepstakes. The prize was awarded on Thursday to the winners by Wayne Hoovestol, Chairman of Green Plains Renewable Energy and a member of the Growth Energy Board of Directors.

“We are very proud to drive a Ford Flex Fuel Vehicle. If we’re ever going to secure our nation, we need to do it with domestic fuels like ethanol. Ethanol creates jobs here in the U.S., and it gives our farmers market certainty, but just as important is the fact that every gallon of ethanol we make in the U.S. means one less gallon of fuel from overseas,” the Johnsons said.

The giveaway was conducted as part of the campaign launching Growth Force, the individual membership for Growth Energy, a coalition of U.S. ethanol supporters. People who signed up for Growth Force became eligible to win the truck. Growth Force sign-up drives were held at two of the nation’s largest farm shows: the Farm Progress Show in Decatur, Illinois and the Husker Harvest Days show in Grand Island, Nebraska.

“As a member of Growth Energy, we are pleased to award this Flex Fuel Ford F150 truck to the Johnsons,” Hoovestol said at the truck giveaway. “In a short period of time, ethanol has become the third largest supplier of fuel in the U.S. behind imports from Canada and ahead of fuel imports from Saudi Arabia and Mexico. We congratulate the Johnsons.”

More than 13,000 people have joined Growth Force since its inception this summer.

Ethanol, Flex Fuel Vehicles, Growth Energy

Grassley Blasts Dems for Biodiesel Incentive Lapse

John Davis

grassley3Republican Senator Charles Grassley of Iowa says Democrats seem to just paying lip service to the concept of green energy and green jobs.

He took to the floor of the Senate this week to blast the Democratic leadership for what appears to be allowing the $1-a-gallon biodiesel tax incentive to expire at the end of this month. Here are some of the remarks as posted on IowaPolitics.com:

President Obama and Vice President Biden have been talking for months about the need to create “green jobs.” In fact, President Obama has held three public events in recent days to highlight his concern about the economy and the need to create jobs. Yesterday, the Administration apparently announced billions more in tax credits for renewable energy and energy conservation efforts.

It seems like nearly everyone in the Administration is touting the benefits of green jobs and a clean energy economy. It’s astonishing, then, that this Congress will head home for the Holidays while thousands of “green energy” workers receive pink slips and furloughs…

Without an extension of the tax credit, all U.S. biodiesel production will grind to a halt. Plants will be shuddered, and workers will be let go. No one should be surprised by the upcoming expiration of this tax credit. It was extended most recently in October of 2008. So, we’ve known for 14 months that it would need to be extended by the end of 2009. The Senate has been in session nearly continuously for months…

There’s no excuse for inaction on this extension.

The Democratic leadership is content to leave here without doing the necessary work on extenders, believing that they can extend the tax provisions retroactively sometime early next year. But, retroactivity doesn’t help the U.S. biodiesel market from grinding to a halt on January 1, 2010, because without the incentive, biodiesel will cost much more than petroleum diesel.

Although a one-year extension of the biodiesel tax incentive has breezed through the U.S. House, it’s been all health care all the time in the Senate. Grassley says while lawmakers “dither,” thousands of biodiesel workers could lose their jobs. He adds that any halt to the biodiesel industry could be a death knell for the green fuel.

Biodiesel, Government

DF Cast: Recycling Materials to Grab the Sun’s Power

John Davis

df-logoSolar energy holds great promise for this nation: it’s practically always there, it doesn’t produce greenhouse gases, and it’s free. But production of the materials used to capture the power of the sun is not always a green proposition … and they’re certainly not free!

BioSolarThat’s where BioSolar comes in. The Los Angeles area-based company has found a way to use some recycled materials and non-food sources to make one of the key components of a solar panel – the backsheet – now commonly made from petroleum products.

In this edition of the Domestic Fuel Cast, I talk to David Lee, CEO of BioSolar about how they are using recycled cotton and castor bean oil not only to make the material from something other than non-renewable oil, but also make it for about 25 percent less than conventional methods … making solar energy green for the environment and green for the pocketbook.

It’s quite an interesting process, and you can hear my conversation with David here: [audio:http://www.zimmcomm.biz/domesticfuel/DFCast-12-17-09.mp3]

You can also subscribe to the DomesticFuel Cast here.

Audio, Domestic Fuel Cast, Solar