NEC 2027

RFA Seeks Fairer Test of Ethanol by UL

Cindy Zimmerman

Renewable Fuels Association LogoThe Renewable Fuels Association (RFA) is concerned about testing of the nation’s gasoline pumps currently underway by Underwriters Laboratory (UL) that is using what the group calls “aggressive ethanol” intended to accelerate any potential issues that may arise with the use of higher ethanol blends.

blender pumpAccording to RFA, this “aggressive ethanol” misrepresents the fuel ethanol found in the market today. Many of compounds found in this grade of ethanol, such as gum, sulfates, and pHe, were well outside the range specified by ASTM, the international standards organization for fuels.

RFA Technical Director Kristy Moore has written to UL outlining the association’s concern with this process. “Ultimately, it is clear the ‘aggressive ethanol’ formula required by UL grossly misrepresents modern fuel ethanol and is far worse than even the lowest quality ethanol in commerce today,” she wrote. “It is safe to say ‘aggressive ethanol’ is not representative of any fuel ethanol that is found in the marketplace today. Automobile manufacturers themselves have confirmed that they no longer use ‘aggressive ethanol’ in testing. Rather, they prefer to use ethanol that is representative of the fuel in the marketplace.”

The RFA is urging UL to move forward with its testing using an ethanol formulation that more closely mimics those allowed in the marketplace.

blends, Ethanol, Ethanol News, RFA

U.S. Energy Company to Buy Jatropha-based Biodiesel

John Davis

ValeroAn American energy company with biodiesel and ethanol operations will be buyng some of its green fuel from down under.

The New York Times reports that Valero Energy has signed a five-year deal with Australian biofuel refiner Mission NewEnergy to obtain biodiesel made from jatropha. Valero will also be able to buy a 25 percent stake in Mission:

Mission will supply Valero with up to 60 million gallons of biodiesel per year, starting next year. Under the terms of the agreement, Valero can double that amount and extend the contract by an additional five years. The value of the contract could be as high as $3.5 billion, Mission said in a statement.

Jatropha is a family of oil seed plants that can grow on marginal soil without displacing land used for food supply.

Already the nation’s biggest petroleum refiner, Valero has been steadily increasing its presence in the biofuels market. Earlier this year, Valero obtained seven ethanol refineries from financially strapped VeraSun, and Valero got into the biodiesel business this fall when it started a venture in Louisiana with Darling International Inc. to develop an animal fat biodiesel plant.

Biodiesel, Ethanol, Ethanol News, News

Algae Biodiesel Maker Teams with Japanese

John Davis

OriginOilCalifornia-based algae biodiesel producer OriginOil Inc. has signed a memorandum of understanding with Japan’s Research Institute of Tsukuba Bio-Tech (RITB) to develop algae-to-jet fuel technologies.

RITB2This article from Biomass Magazine says the deal comes on the heels of RITB getting money from the Japan Science and Technology Agency to develop algae-to-jet fuel applications:

Headed by Tsukuba University professor emeritus and algae researcher Takaaki Maekawa, RITB recently signed a memorandum of understanding with OriginOil to develop and distribute systems in Japan for aircraft fuel production, algae-to-oil production and other industry applications. RITB was recently approved for two years of research and development funding based on its proposal to the Japan Science and Technology agency. Maekawa’s presentation, available on the RITB Web site, pointed to the volume of carbon emissions from Japans major industrial emitters as well the stability of jet oil prices and future demand potential.

“Our funders have set a priority on sustainable aircraft fuels,” Maekawa said. “Together with OriginOil we will target these fuels. We look to OriginOil for the needed technology and resources to help carry out this vast assignment.”

“We salute Japan Science & Technology Agency for its initiative in algae-based jet fuel,” said Riggs Eckelberry, OriginOil CEO. “We are privileged to have been asked by RITB to support Professor Maekawa’s high-priority efforts over the next two years. We look forward to helping make his program a major success.”

Earlier this year, Japan Airlines tested a mix of camelina, algae and jatropha biofuel blended with jet fuel and found it had better fuel efficiency than traditional kerosene used in airliners.

Biodiesel, International

Biodiesel Gets British Columbia to Cut Carbon Tax

John Davis

bc_flagA controversial tax imposed on some Canadians will be reduced at the beginning of the new year, thanks to biodiesel.

Today’s Trucking.com reports that British Columbia’s carbon tax will drop by 5 percent and planned increases will also be lessened because of renewable fuels:

On Jan. 1, 2010 the carbon tax rate on diesel drops from 4.04 cents per litre to 3.84 cents per litre and on gasoline from 3.51 cents per litre to 3.33 cents per litre.

On July 1, 2010 the carbon tax rate will increase to 5.11 cents per litre (adjusted from 5.38 cents per litre) for diesel and 4.45 cents per litre (from 4.68 cents per litre) for gasoline.

The government determined the annual rate increase when the carbon tax first became effective and it will continue until July 2012. Yearly increases for diesel, adjusted for the renewable fuels, will be: July 1, 2011 –¬ 6.39 cents per litre, instead of 6.73 cents per litre; and July 1, 2012 –¬ 7.67 cents per litre, instead of 8.07 cents per litre.

The tax was expected to cost the trucking industry $20 million. Maybe if we can get a bit more of cleaner burning biodiesel into the mix, they’ll save even more.

Biodiesel, Government

Northern Most Ethanol Blender Pump Station Opens

blender_pumpThe northern most E85 fueling station is now open! The Farmers Union Oil ethanol blender pump at 418 State Avenue SW in Warroad, Minnosota celebrated their opening this week.

The “Christmas Tree discounts” at the station began Wednesday. Motorists who bought eight gallons or more of the ethanol blended fuels received discounts off the price of the live Christmas trees sold at the station: E85 = $8.50 discount; E50 = $5 discount; E30 = $3 discount; E20 = $2 discount; and E10 = $1 discount.

Minnesota now has over 60 blender pumps within the state and about 350 E85 stations. The state touts the most E85 fueling locations of any state throughout the country.

blends, E85, Ethanol, Ethanol News, News

GE Inks Deal to Build U.S.’s Biggest Wind Farm

John Davis

GEWind1GE has signed a $1.4 billion deal to deliver more than 300 wind turbines for a 845 megawatt wind farm to be built in Oregon.

The Earth2Tech blog says, when built, it would be the largest wind farm in the U.S.:

Independent power producer Caithness Energy will develop the wind farm, called Shepherds Flat, and under three power purchase agreements will provide clean power for utility Southern California Edison (meeting one-tenth of SCE’s state renewable portfolio standard). Caithness Energy says the entire project will cost $2 billion, will create 435 local jobs and is ready to be built now.

The wind industry is pretty much the most mature clean power sector in the U.S. and is being driven in California partly by the state renewable portfolio standard, which says utilities must have 20 percent of their electricity come from clean power by 2010. The American Wind Energy Association (AWEA) said that in the third quarter the U.S. wind energy industry installed 1.6 GW of new power generating capacity, bringing the year-to-date total by the end of the third quarter to 5.8 GW.

Experts are hoping that the tough economy, which hit the wind turbine particularly hard this past year, will turn the corner to free up some of those markets to provide more capital for construction.

Wind

Copenhagen Seen as Good for Biodiesel, Ethanol

John Davis

CopenhagenlogoThe Copenhagen Climate Change Summit, which started this week in Denmark, could be good for biodiesel and ethanol.

Biodiesel Magazine reports that while not everyone agrees exactly on what the political negotiations will bring, an expected deal … if not a full treaty … outlining a carbon pricing or cap-and-trade system that puts a price on carbon will be a boon biofuels:

The combined GHG emissions reduction from global ethanol and biodiesel production of 123.5 million tons 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, [Global Renewable Fuels Alliance] said. “This is equal to the national GHG emissions of Belgium or Greece, as well as the combined emissions of Monaco, Liechtenstein, Iceland, Latvia, Luxembourg, Slovenia, Estonia, Lithuania and Croatia.”

Because of biofuels companies’ carbon reducing capabilities they might be able to sell credits under a carbon pricing or cap-and-trade system, which of course would boost the economic viability of the biodiesel industry and its counterparts. “This would add to any benefits the biofuels industries would see from increased use and sales,” Baker said.

While it’s not so sure if there will be a concrete agreement, it is expected that most parties will at least agree to keep talking. And everyone is watching to see what the biggest players, the U.S., China and India are going to do.

Biodiesel, Ethanol, Ethanol News, International, News

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