NEC 2027

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

Ethanol Industry Leader Honored by ASTM

Cindy Zimmerman

ASTM International has honored a long time ethanol industry expert with its Award of Excellence.

robert reynoldsRobert Reynolds of Downstream Alternatives received the award for his “outstanding and dedicated contributions to fuel standards development and as a consensus builder within ASTM between ethanol and petroleum interests.”

Reynolds, pictured here at the 2007 National Ethanol Conference, was a founding member of the Renewable Fuels Association (RFA) Technical Committee and is the author of the most widely used technical reference materials for fuel ethanol today, the Changes in Gasoline manual series and the Fuel Ethanol Industry Guidelines.

“For more than three decades, Bob Reynolds has served this industry extremely well, bringing an immense amount of technical fuel expertise to an ever- evolving industry,” said RFA President and CEO, Bob Dinneen. “Ethanol wouldn’t have the excellent reputation for quality in the fuel industry without him, nor would it have gained the widespread acceptance and use it enjoys today.”

Ethanol, Ethanol News, RFA

DOE Issues Final Rule on Loan Guarantee Program

Joanna Schroeder

It was a busy day in Washington yesterday as U.S. Secretary Steven Chu announced the issue of a final rule for the Loan Guarantee Program. The revised rule was designed to increase participation from private investors and banks as well as to support more innovative energy technologies. This announcement came on the same day that Chu released another $100 million for a second round of ARPA-E funding.

*Photo Credit The Cayman Institute

*Photo Credit The Cayman Institute

“This much needed change will provide greater flexibility to the Loan Guarantee Program and help us to support more projects at a better value to taxpayers,” said Secretary Chu. “This is part of our commitment to ensuring businesses are able to access the support they need to create jobs and contribute to a clean energy economy.”

The new rules came as a result of more than 2,100 comments from interested parties during the 30-day comment period. Under the updated rule, the Loan Guarantee Program will be able to consider financing project in conjunction with other lenders as well as provide loan guarantees to projects with multiple stakeholders.

Copies of the proposed rule will be available from the Department’s Loan Guarantee Program at www.lgprogram.energy.gov.

biofuels, Government, News

DOE Announces Additonal $100M in ARPA-E Funding

Joanna Schroeder

New_DOE_Logo_DFU.S. Energy Secretary Steven Chu announced today an additional $100 million round of funding opportunities for transformational energy research projects that will be made available through the Advanced Research Projects Agency-Energy (ARPA-E). This announcement was made along side Commerce Secretary Gary Locke in advance of the Copenhagen Climate Conference.

In a statement, Chu said, “I am pleased to announce ARPA-E’s second funding opportunity because it demonstrates our commitment to lead the next Industrial Revolution in clean energy technologies, creating thousands of new jobs while helping cut carbon pollution,” said Secretary Chu. “This solicitation focuses on three cutting-edge technology areas which could have a transformational impact.”

Unlike the last round which focused on supporting projects such as biofuels, carbon capture, renewable power vehicles and more, this round will focus on three key areas: new approaches for biofuels, carbon capture and batteries for electric vehicles.

In a new category coined electrofuels, “ARPA-E is seeking new ways to make liquid transportation fuels – without using petroleum or biomass – by using microorganisms to harness chemical or electrical energy to convert carbon dioxide into liquid fuels.” More specifically, they are looking at funding projects that will research, “organisms capable of extracting energy from hydrogen, from reduced earth-abundant metal ions, from robust, inexpensive, readily available organic redo active species, or directly from electric current.

It is theorized that such an approach could be 10 times more efficient than current photosynthetic-biomass approaches to liquid fuel production. Click here to learn more about submiting a proposal.

biofuels, biomass, Energy, Government, News

EPA Determines CO2, Other GHGs Endanger Society

Joanna Schroeder

coal_fired_power_plantSome of the biggest news to come out of Copenhagen yesterday was the ruling from the Environmental Protection Agency that greenhouse gas emissions are now considered “an endangerment” to society. This ruling now gives the EPA the authority, under the Clean Air Act, to regulate greenhouse gases. This decision could lead to stricter vehicle, manufacturing and power plant emissions – including ethanol and biodiesel plants.

The timing was no coincidence as President Obama is looking to improve America’s bargaining hand during the two week Climate Change Conference where leaders from nearly 200 countries are attempting to create a global climate policy plan.

On December 7, 2009, the Administrator signed two distinct findings regarding greenhouse gases under section 202(a) of the Clean Air Act:

  • Endangerment Finding: The Administrator finds that the current and projected concentrations of the six key well-mixed greenhouse gases–carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6)–in the atmosphere threaten the public health and welfare of current and future generations.

  • Cause or Contribute Finding: The Administrator finds that the combined emissions of these well-mixed greenhouse gases from new motor vehicles and new motor vehicle engines contribute to the greenhouse gas pollution which threatens public health and welfare.

In addition to tightening emission standards, there are two other ways that have been discussed at length to regulate CO2 emissions, the gas that is in the most abundance. First is through a carbon tax and second through a cap and trade system.

Biodiesel, Environment, Ethanol, global warming, Government

American Process Receives $17.9M for Cellulosic Plant

Joanna Schroeder

Ethanol_PlantAmerican Process, a company based in Atlanta, Georgia, has received a portion of the funds that were awarded by the Department of Energy’s (DOE) Biorefinery Assistance Program – $17.9 million to be exact. The funds will be used to develop a plant that will produce ethanol and potassium acetate, a deicer, from wood waste generated by a local hardboard company, Decorative Panels International.

According to an article in the Michigan Messenger, Governor Jennifer Granholm said in a statement, “This grant, in support of one of our Centers of Energy Excellence, will bring 160 jobs to the Alpena area and strengthen Michigan’s efforts to be a leader in the development of the next generation of advanced biofuels.”

Back in June, the state approved the site location as part of a tax-exempt Renewable Energy Renaissance Zone for 15 years beginning next January. In addition to the DOE funds, the project has had other investments including the receipt of $4 million from the Center of Energy Excellence.

biomass, Ethanol, Ethanol News

Solayme Awarded $21.8 Million for Algal Fuel Project

Joanna Schroeder

Solazyme_logoSolazyme, Inc., which was just named the ‘Top 50 Hottest Company in Bioenegy‘ by Biofuels Digest, announced that it has received a $21.8 million federal grant to build its first integrated biorefinery in rural Riverside, Pennsylvania. The funding was announced by the U.S. Department of Energy (DOE) and marks the next step in producing algal based fuel. Research conducted by the company has shown that their algal oil will reduce overall greenhouse gas emissions between 85-95 percent.

“We are honored to partner with the Department of Energy and are excited to be creating jobs in California and Pennsylvania. Our technology reduces reliance on foreign oil and enhances national security while providing strong environmental benefits,” said Jonathan Wolfson, chief executive officer of Solazyme.

According to the company, the DOE funds, along with other private investments will be used, “to move toward commercialization faster, creating and preserving jobs in diverse regions across the country and creating jobs in manufacturing, construction and agricultural processing.” Solazyme’s Integrated Biorefinery will be located on the site of Cherokee Pharmaceuticals’ existing commercial biomanufacturing facility in Riverside, Pa.

“Last year’s record high gas prices and their impact on families and businesses proved that we must reduce our dependence on foreign oil in favor of biofuels produced here at home. Solazyme’s innovative project is working towards that goal by demonstrating how we can turn algae into fuel in a cost-effective way and on a commercial scale. These are the types of investments we must make today in order to strengthen our economy, our environment and our national security in the long-run,” said Governor Edward Rendell of Pennsylvania.

algae, biofuels, News

Grant to Help Iowa Plant Produce Biodiesel & Cosmetics

John Davis

elevanceAn Illinois company has received a $2.5 million federal grant to put in a demonstration project in an Iowa biodiesel plant that could allow the facility to produce the green fuel and cosmetics.

Last month, I told you how Elevance Renewable Sciences of Bolingbrook, Ill., was looking to get some government assistance to put in the $8.1 million project in Renewable Energy Group’s Central Iowa Energy biodiesel plant in Newton (see my post from Nov. 23, 2009). Now, the Des Moines (IA) Register reports the U.S. Department of Energy has come through with part of the money Elevance was looking for:

Elevance uses a proprietary technology that could produce fuels, chemicals, pharmaceuticals and cosmetics from the same soybean oils and animal fats used at biodiesel plants. It has told state officials that the process could be bolted on to other biodiesel plants around the state.

Elevance also has requests pending for a $3.8 million grant from the Iowa Power Fund and another $800,000 from the Iowa Department of Economic Development.

Elevance is backed by the Texas Pacific Group investment fund of Fort Worth as well as Cargill and Materia Inc. of Pasadena, Calif., which owns the patents to the Olafin Metathesis process that won the 2005 Nobel Prize.

This grant is part of that $600 million the feds announced last week that went to 19 biorefinery projects in 15 states.

Biodiesel, Government

Biodiesel Completes Capitol Christmas Tree Journey

John Davis

CapitolChristmasTree2Tomorrow (Tuesday) night will be a magical time in Washington, D.C., as the Capitol Christmas Tree is officially lit.

The National Biodiesel Board points out that the 85-foot blue spruce made the 4,000-mile cross-country trip from Arizona to the nation’s capital on a truck fueled with biodiesel … a first for the tradition of the Capitol Christmas Tree that goes back to 1964:

Two diesel trucks running on B5 (a 5 percent biodiesel fuel mix) were part of a caravan carrying the approximately 125-year-old tree from the Apache-Sitgreaves National Forest.

NBB-logo“It is significant that the Capitol Christmas Tree was delivered with biodiesel because economic development, carbon reduction, and energy security continue to dominate national priorities,” said Joe Jobe, CEO of the National Biodiesel Board. “Biodiesel helps us achieve all of those things.”

The trucks carrying the tree and its accompanying 10,000 handmade ornaments and 80 companion trees that will be placed in offices throughout the Capitol Complex made their way across country, using the BioTrucker system going from biodiesel station to biodiesel station to pick up donated biodiesel along the way.

Biodiesel, NBB