Canadian Biofuelers to Ask for Bigger Mandates

John Davis

Ethanol and biodiesel producers in Canada will ask their government early next year to increase the amount of the green fuels produced and added to fossil fuels… even as there are doubts the industry can meet current mandates and production incentives.

Reuters reports that the industry has not decided what those levels should be:

Canada has given annual incentives for up to seven years to 24 biofuel producers, including Husky and Suncor, from a C$1.5-billion ($1.4 billion) program. The government considers biofuel attractive because it reduces greenhouse gas emissions.

CRFA1The biofuels industry will also ask government to set Canada’s first mandate for advanced biofuels, such as those made from algae, wood and grasses, which are not yet in commercial production, [Gordon Quaiattini, president of the Canadian Renewable Fuels Association said.

“We want to see the commercialization of that technology here in Canada, have those plants built in Canada and obviously have a market for that fuel here in Canada.”

Canada’s current biofuel supply will fall short when the first federal government mandate of 5 percent renewable content in gasoline takes effect in September 2010 and a 2 percent federal mandate for renewable content in diesel takes effect in 2011.

Quaiattini admits that Canada will need to import about 40 million to 80 million gallons of ethanol in 2010 and 2011 just to meet current mandates. And some of that ethanol will need to come from the U.S.

Biodiesel, biofuels, Ethanol, Ethanol News, International, News

Founder and CEO Out at Denver Biodiesel Firm

John Davis

BlueSunThe man who founded and served as the CEO of one of Denver’s first biodiesel firms is out.

This article from the Denver Business Journal says Blue Sun Energy Inc.’s Jeff Probst, resigned from the company at the end of October… but offers few details about the split:

Probst, who couldn’t be reached for comment Wednesday, also left the director position but remains a part owner of Blue Sun, [company spokesman Steve Bond] said.

“It’s a strategic change for the company,” Bond said. “Jeff had done a lot with launching the company, now it’s entering a different phase.”

Bue Sun was founded in 2001. Probst had been Blue Sun’s CEO and president the past six years, according to the company.

The company expects to fill the CEO position but the board hasn’t met about the subject yet.

The company seems to have kind words about Probst’s time … of course, he still is one of the owners. But does anyone have any info about what happened? Sure would like to know.

Biodiesel

Food Deliveries in Georgia to Ride on Biodiesel

John Davis

usfoodserviceOne of the country’s premier foodservice distributors has converted another one of its delivery fleets to run on biodiesel.

This press release posted on the EarthTimes.org Web site says U.S. Foodservice-Atlanta is running its 185 tractors and 210 trailers on B5, joining U.S. Foodservices’ Streator, Ill., and Plymouth, Minn. divisions burning the green fuel:

“Utilizing biodiesel is a continuation of our ongoing environmental strategy,” said John Leake, president of U.S. Foodservice-Atlanta. “Improving our overall impact on the environment – while helping our customers find effective ways to do the same – not only makes good business sense, it’s the right thing to do.”

The biodiesel fuel costs on average about a penny more per gallon. Its use is expected to reduce the U.S. Foodservice-Atlanta fleet’s carbon dioxide (CO2) emissions by nearly 788,000 pounds – or about 4 percent – annually. That’s roughly the equivalent of taking 65 cars off the road or of planting more than 3,150 trees every year.

The company will get the biodiesel from a local company, S.A. White Oil Co. of Marietta.

Biodiesel

Biodiesel Gets Boost from Palm Oil Genome Project

John Davis

MPOB-OrionA joint American-Malaysian effort has completed an important oil palm genome sequencing project that could unlock even more potential from this oil-rich feedstock for biodiesel.

Biodiesel Magazine reports that the Malaysian Palm Oil Board and St. Louis-based Orion Genomics have led a consortium that has sequenced three oil palm genomes from two oil palm species:

Oil palm plantations on average produce 3.9 tons of oil per hectare per year, nearly 10 times more than other productive oil bearing crops. Therefore, it has the potential to meet growing demand for food and renewable fuel. Used in cooking oil, margarine, baked goods and other foods, palm oil is the most consumed edible oil in the world as well as a common ingredient in soaps and cosmetics and an important biodiesel feedstock globally.

The oil palm family has two species, the E. guineensis which originates from Africa and the E. oleifera, which is native to South America. Because of its high productivity, the E. guineensis is the commercial variety planted in Malaysia. However, the E. oleifera has many interesting traits such as a low height increment that would increase the life-span of harvestable plantings, increased resistance to disease and production of higher quantities of unsaturated fats – traits that will add value if incorporated into commercial E. guineensis lines.

Researchers believe this knowledge of the genomic sequence will help them produce bigger yields to meet food and fuel needs.

Biodiesel, International

Largest Wind Energy Project in Utah Begins Operations

John Davis

firstwindThe largest wind energy project in Utah has started operations, generating enough power to keep the lights on in 45,000 homes per year.

This article from the Deseret News says First Wind’s Milford Wind Corridor project has 97 wind turbines capable of producing 203.5 megawatts of electricity:

Milford_Wind_Turbine2Eventually, the $400 million project will include 159 turbines across 40 square miles of public and private land.

“We’re looking forward to expanding it in the months and years to come,” Paul Gaynor, chief executive officer of First Wind, said in the release. “This project is a great example of the kind of development that helps create jobs and helps stimulate the economy.”

The project’s power will go to the Southern California Public Power Authority, on behalf of the Los Angeles Department of Water and Power and the cities of Burbank and Pasadena, Calif. In December 2007, First Wind signed a 20-year power purchase agreement with the authority.

“We’re pleased to see this project go online and begin delivering clean power to our customers,” said Bill Carnahan, the authority’s executive director, said at Tuesday dedication ceremony.

The article goes on to say that the Milford Wind Corridor is the first-of-its-kind project under a new Bureau of Land Management program to develop wind energy on federal lands.

Wind

Biodiesel Equipment Set for Sale on November 12

John Davis

maasDon’t forget, there’s a big sale on biodiesel equipment just around the corner.

On this Thursday, November 12, auction company Maas Companies, which recently sold the Altra Nebraska ethanol plant in Carleton, Nebraska, will be selling six, 10-million-gallon-a-year biodiesel process trains at the Hampton Inn & Suites – Newark Harrison Riverwalk, 100 Passaic Ave, Harrison, New Jersey, starting at 11 a.m.

Maasbiodieselequipment2Allison Guyton, director of operation for Maas Companies says this is a perfect opportunity for anyone wanting to pick up some brand new, still shrink-wrapped, palleted equipment that is ready for a plant expansion.

“The equipment is owned by RPL Holdings, and they had [wanted] to use the equipment for a business expansion that never materialized.”

She says the equipment is crated and ready to be shipped anywhere, either overseas or domestically, and is easily transportable.

GuytonGuyton says sales like these seem to go in cycles with this being a phenomenal chance for someone to expand their operations while not expanding their expenses.

You can hear an excerpt of my recent conversation with Guyton where she talks about this particular sale here: [audio:http://www.zimmcomm.biz/domesticfuel/Guytonintw-edit2.mp3]

More information on the sale is available here.

Biodiesel

Ceres Awarded $5 Million Grant to Develop Energy Grasses

Joanna Schroeder

Ceres_SeedstorageCeres has been awarded $5 million dollars by the U.S. Department of Energy (DOE) to continue its advanced trait development project designed to increase the biomass yields of several energy grasses, such as switchgrass, sorghum and miscanthus, by as much as 40 percent. At the same time, the use of inputs such as nitrogen fertilizers would be decreased. The grant is part of the program managed by the Advanced Research Projects Agency – Energy (ARPA-E) and the award recipients were based on the potential for high impact as well as scientific and technical merit.

Richard Flavell, Cere’s Chief Scientific Officer, said in a press statement earlier today, “Low-input traits developed through modern genetics can provide wide-reaching benefits to the energy and agricultural sectors as well as the environment — just the type of transformational impact energy officials are looking for.”

Ceres’ initial projections indicate that their traits alone could displace 1.3 billion barrels of oil and 58 million tons of coal over a 10 year period. In addition, taking into account cropping practices, the company also estimates that 1.2 million tons of nitrogen fertilizer could be eliminated. This is equal the the amount of average nitrogen needed for 24 million acres of cotton.

“At the heart of our ambitions for a full-scale bioenergy industry will be how well we utilize our land resources,” said Richard Hamilton, Chief Executive of Ceres.  “With greater use of technology, increased productivity will go hand-in-hand with greater sustainability.”

Cellulosic, Ethanol, Ethanol News

New Venture to Finance Sorghum-to-Ethanol Projects

John Davis

epecA new venture could provide up to $376 million for projects that will turn sweet sorghum into ethanol.

DPG Investments, LLC (DPG) has announced its partnership with EPEC Biofuels Holdings, Inc. (EPEC) to put together a new platform finance company called EPEC Finance, LLC that will fund the manufacture and deployment of EPEC’s proprietary Ethanol Production Units (EPU’s) on select sweet sorghum farms throughout the country:

“Our energy and natural resources team at DPG strongly believes EPEC Biofuels is on its way to becoming a world leader in production and distribution of ethanol, based upon its proprietary processes and proven management team. We are very excited about the future of EPEC and this platform financing joint venture,” said Dan Galvanoni, Chairman of DPG Investments, LLC.

In addition, the new finance joint venture will also serve as a specialty finance and investment company that will seek to provide financing for various strategic acquisitions, partnerships and investments in the renewable energy and biofuels sectors on a global basis. EPEC Finance jointly with EPEC Biofuels will seek to identify such biofuels and alternative energy initiatives that can provide a steady and predictable return on capital investments.

According to EPEC’s Web site, sorghum is 28 times more efficient than corn in producing ethanol. The company also has modular production facilities range in capacity from 500,000 to 3,000,000 gallons per year and produce fuel grade ethanol and valuable by-products.

biofuels, Ethanol, Ethanol News, News

Wet Ethanol Process May Have Benefits

Cindy Zimmerman

Soaking corn kernels instead of drying them could increase ethanol yields and create more co-products.

POET Emmetsburg BiorefineryResearchers at the University of Illinois have found that a wet ethanol production process results in more gallons of ethanol and more usable co-products.

“The conventional ethanol production method has fewer steps, but other than distillers dried grains with soluble, it doesn’t have any other co-products,” said University of Illinois Agricultural Engineer Esha Khullar. “Whereas in both wet and dry fractionation processes, the result is ethanol, distillers dried grains with soluble, as well as germ and fiber. Corn fiber oil for example can be extracted from the fiber and used as heart-healthy additives in buttery spreads that can lower cholesterol.”

In comparing the wet and dry fractionation methods, Khullar’s research team found that when using the wet fractionation method, the result is even higher ethanol concentrations coming out of the fermenter and better quality co-products than the dry method. Researchers say the process requires no new equipment. “It’s just a modification of things that are already being done in the corn processing industry and can be done pretty easily,” Khullar said.

Read more here.

Ethanol, Ethanol News, Research

Corn Crop Still Strong and Good for Ethanol

Cindy Zimmerman

Even though USDA lowered its forecast for 2009 corn production in the latest report out today due to lower yields, farmers are still expected to see record yields and production is still expected to be the second highest on record.

Corn production is forecast at 12.9 billion bushels, down 1 percent from last month but 7 percent higher than 2008. Based on conditions as of November 1, yields are expected to average 162.9 bushels per acre, down 1.3 bushels from October but 9.0 bushels above last year. Despite the drop in yield from October, this yield will be the highest on record if realized. Total production will be second highest on record, only behind 2007.

corn harvestThe harvest continues to be slow throughout the Corn Belt. According to USDA, just 37 percent of the corn had been combined as of Sunday, compared to 82 percent average and even well behind last year’s slow harvest which was 69 percent complete at this time in 2008. Meanwhile, despite moisture issues, corn quality remains strong, up one percent this week to rate 68 percent good to excellent.

While high moisture and low test weights are getting to be major concerns with the crop, ethanol plants are able to utilize the lower quality corn. Arlan Suderman with Farm Futures spoke with Dave Vander Griend, President and CEO of ethanol developer ICM, Inc. of Kansas about the situation last week.

“We can utilize the crop,” says Vander Griend. “A lot of people don’t want it, which means that it will be discounted. Many people in the industry haven’t been through this before, but I’ve been around long enough to have lived through it before and know that it can work. Ethanol plants can usually beat the price of the other discounts being offered and make use of it.”

Suderman notes that Vander Griend emphasized the importance of farmers talking to their local ethanol processor now about how to best care for and deliver lower quality corn.

corn, Ethanol, Ethanol News, Farming, USDA