BlueFire Ethanol Locating Plant in Mississippi

Cindy Zimmerman

Blue Fire EthanolCalifornia-based BlueFire Ethanol received approval from the Department of Energy (DOE) recently to locate its second planned cellulosic ethanol biorefinery in Fulton, Mississippi.

The company was awarded a $40 million dollar grant from DOE for a second facility in 2007 that was originally to be located in California. However, development and licensing concerns, coupled with the challenging business climate in California caused company officials to petition the DOE for a site change to Mississippi. “We determined the Fulton site located in north eastern Mississippi was best suited to fulfill our requirements for our second biorefinery plant after studying various locations in several states over the past year,” said BlueFire President and CEO Arnold Klann.

The Mississippi project will allow BlueFire to utilize green and wood wastes available in the region as feedstock for the ethanol plant that will be designed to produce approximately 18 million gallons of ethanol per year. BlueFire is currently awaiting the final financing needed to break ground on its first ethanol biorefinery in Lancaster, CA. The Lancaster facility will use post-sorted cellulosic wastes diverted from Southern California’s landfills to produce approximately 3.9 million gallons of fuel-grade ethanol per year

Cellulosic, Ethanol, Ethanol News, Government

Novozymes Responds to Science, Indirect Land Use Debate

Joanna Schroeder

37707026braz_20010627_17060.jpgThe Science magazine article that was published last week and co-authored by Tim Searchinger, a lawyer, has added another level of controversy to the indirect land use change (ILUC) debate. The article suggested the land use effects of fuel produced from various forms of biomass were miscalculated, in part, because they cause deforestation around the world as land is cleared to grow so called “energy crops”. EPA has yet to rule on RFS2 (they are unsure of how to incorporate ILUC) and discussion on how to regulate bio-electricity has barely begun.

Novozymes is one of the dozens of companies speaking out against the article and its conclusions. Suggestions that the increased use of fuel produced from biomass will automatically lead to increased deforestation globally ignores existing science, continued technological advances, and numerous international policies and principles under development to regulate biofuels, say experts at Novozymes.

“We need to make smart energy choices that support a low-carbon energy future,” said Adam Monroe, president of Novozymes North America. “Jumping to quick conclusions about deforestation may ruin one of our best chances for addressing climate change and establishing a sustainable, secure energy supply.”

Because of the potential value that biofuels have as part of a low-carbon society, dozens of scientists have challenged the credibility of economic models used to estimate the values of GHG emissions projected from ILUC.

“Clearly, the direct and indirect environmental impacts of the world’s energy supply need further study, but there needs to be a level playing field to ensure that biofuels, bioelectricity and, most importantly, fossil fuels are all judged by the same criteria when measuring emissions. There should be a full accounting of the carbon emissions of all fuels, not just biofuels,” said Monroe.

biofuels, global warming, Indirect Land Use

Loan Program Needs Changes to Advance Cellulosic Ethanol

Cindy Zimmerman

An ethanol industry group says the loan guarantee program at the U.S. Department of Energy needs to function more efficiently and effectively to make capitol available to advance next generation biofuels like cellulosic ethanol.

Renewable Fuels Association LogoThe Renewable Fuels Association (RFA) is asking US Department of Energy (DOE) Secretary Steven Chu to make needed changes in the loan guarantee program for biorefineries.

“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,” wrote RFA President and CEO Bob Dinneen, who says DOE “must recognize the unique challenges of emerging biofuel technologies and establish criteria appropriate to them.”

RFA is asking DOE to take four specific actions:
1. Eliminate the requirement that applicants have year-long off-take agreements in place.
2. Recognize that applicants, by definition, may not have commercial scale financial data and to consider applications that “employ new or significantly improved technologies compared to commercial technologies in service in the U.S.” as outlined in the law.
3. Review applications that have been declined to determine what fixes can be made to correct perceived deficiencies.
4. Replace the $2 billion borrowed for the “Cash for Clunkers” program at the first opportunity.

Read RFA’s letter to DOE here.

Ethanol, Ethanol News, Government, RFA

Switchgrass Varieties From Ceres

Chuck Zimmerman

Cory ChristensenWe’ve certainly heard a lot about switchgrass as a biomass option for the production of ethanol. How many of you have seen it growing?

That’s it behind Cory Christensen, Director of Product Managment, Ceres, who was conducting Sunbelt Ag Expo presentations in the field. He says it’s a first season stand of their Blade energy crop. It was developed specifically for the southeast. Since it’s the first season for this crop they won’t harvest it at Sunbelt until next year. A mature yield for the crop is about 8 tons per acre of dry matter. By the second season next year it will be at 80 percent of maturity.

SwitchgrassSwitchgrass is native to the United States everywhere east of the Rockies. Ceres, has been working on varieties that will yield better in different growing environments though. Cory says that they don’t expect it to displace corn in Iowa but in the southeast with the difficulties in cotton and tobacco it becomes a viable alternative on open acres. He provides some estimates of what the crop can mean financially as the market for a fuel crop like switchgrass develops.

Cory describes the current market as a “developing market.” They have a map that shows developing opportunities where plants will be located to process energy crops. He says that biomass is a local business so you need to be located near a biorefinery. He also points to the USDA’s Biomass Crop Assistance Program that provides monetary assistance to facilitate the transition of eligible land to energy crops.

You can listen to my interview with Cory below:

Audio, biomass, Cellulosic, Ethanol

ND Offers $2 Mil for New Ethanol Blender Pumps

John Davis

The State of North Dakota has launched a program that will make $2 million in grants available for fuel station owners who install new, multifuel pumps that will mix ethanol right at the point-of-sale.

This post on InForum, the forum of Fargo-Moorhead, says buyers will be able to choose from pure gasoline up to E85 ethanol:

hoeven“We’re excited about this initiative because it’s a win for consumers, farmers, retailers and ethanol producers,” said Gov. John Hoeven, during a Friday news conference announcing the state Department of Commerce Biofuels Blender Pump incentive program.

Service station operators, through a mix of grants and incentives, will be able to purchase and install the $25,000 blender pumps for less than $2,500, said Kent Satrang, CEO of Petro Serve USA.

North Dakota will provide grants up to $5,000 per blender pump and $40,000 per retail service station.

The North Dakota Corn Growers Association and Corn Utilization Council have allocated $500,000 to provide $2,500 per pump.

The remaining incentives include federal tax credits and ethanol industry incentives.

“The idea here was to partner the abundant corn fields of rural North Dakota with the massive Bakken oil fields of western North Dakota,” Satrang said.

One goal is to raise ethanol volumes by replacing old gas pumps with innovative biotech blender pumps, he said.

North Dakota ethanol producers hope the new pumps will keep more of the green fuel in the state, since it costs 15 to 25 cents per gallon to ship it out-of-state.

More information is available here.

E85, Ethanol, Ethanol News, Government, News

Evolution Fuels Unveils Truck Stop Biodiesel Plan

John Davis

EvolutionFuelsDallas-based Evolution Fuels, Inc. has announced a plan to put the biodiesel it produces in five of its own truck stops.

This company press release says the company hopes that by controlling the entire supply-to-user chain, the venture will be successful:

The Company’s ownership in the Willie’s Place at Carl’s Corner Truck Stop located near Hillsboro, TX has provided valuable experience and insight into how and where to create similar truck stop operations. In May of this year, the Company announced the formation of its subsidiary, “Legends Travel Centers LLC,” to hold its ownership in truck stop projects, and is actively pursuing existing truck stop operations in Texas and Oklahoma with the concept of establishing five “Legends Travel Centers”-branded facilities.

The Company has developed a plan to allow its facility located in Durant, Oklahoma to process relatively low-cost animal fats into biodiesel. The company is in the process of negotiating a contract for the supply of these fats, which exist in close proximity to Durant.

The Company intends to produce sufficient biodiesel to supply the five truck stops for the biodiesel portion of the B20 (20% biodiesel/80% petroleum diesel) planned for sale at the high-speed commercial truck fuel dispensers. The Company has retained Informa Economics, Inc. to assist with the financial pro forma modeling of the entire operation, and anticipates aggressive margins as a result of the ability to utilize low-cost feedstock and the direct sales through the retail dispensers, thereby retaining all of the margins throughout the fuel supply chain.

In the future, Evolution wants to partner with makers of fuel dispensers to come up with new technology that would blend biodiesel and petroleum right at the pump.

Biodiesel

Michigan School Bus Hits Milestone with Biodiesel

John Davis

StJohnsMISchoolBusSign1A school bus in Michigan has just hit 300,000 miles, and the bulk of those miles have come while running on biodiesel.

This National Biodiesel Board press release tells the tale of Bus #14 of the St. Johns, Michigan Public School system, which started burning a 20 percent blend five years ago:

“Since switching to biodiesel, it is much cleaner and smells much better,” the 20-year veteran of the St. Johns, Mich. Public Schools said. “When fueling, you don’t have the smell on your hands all day. Your clothes don’t smell like diesel all day. It is a much better work environment and much healthier for the kids and the community.”

The school district’s switch to B20 in 2002 came from the persistence of Wayne Hettler, Garage Foreman & Head Mechanic for St. Johns. His foresight has led to a reported track record of bus longevity and reduced service needs, saving the school district money.

Last week, “bus #14” rolled over 300,000 miles – a milestone Hettler attributes to B20 and believes no other Michigan school bus used on a daily route has achieved.

In October, 2002, bus #14 had 119,621 miles on the odometer. That was the first day of the rest of its life on B20. Since then, the maintenance on this engine has been very low with the only unscheduled maintenance being a $160 lift pump and a $90 injector, according to Hettler.

St. Johns officials add that due to the extra lubricity biodiesel brings to the table, the school district has been able to extend the mileage between oil changes from about every 6,000 miles to 12,000-18,000 miles, saving the district money on oil and filters. The district figures it has driven 3 million miles on B20.

The program hit a bit of a snag when rising biodiesel costs forced school officials to cut to B5, but they hope that they’ll be able to go back to B20 soon.

Biodiesel

Ethanol Operators School

eth_tech_institute_schoolComing to Omaha, Nebraska on November 10-12, the Operators’ School is designed to educate ethanol producers on the ins and outs of alcohol production, the latest troubleshooting techniques and technology used in the industry. The three day conference will be held at Scott Conference Center at 6450 Pine Street.

According to the Ethanol Technology Institute, the Delegates will be immersed in the complete ethanol processing system with lectures covering topics from raw materials, to distillation, to coproducts. Hands on functional demonstrations are also conducted as part of training. Leading industry scientists and academics, as well as Ethanol Technology Institute experts, will direct lectures.

To find a complete agenda for the training, click here. For a registration form, click here.

Ethanol, Ethanol News, News

CFDC Awarded DOE Funds

cfdcAccording to the Clean Fuels Development Coalition (CFDC), they were recently announced that they have received an award from the U.S. Department of Energy as a team member on two different awards recently issued by the agency. Both projects will focus on increasing infrastructure and demand for biofuels like ethanol.

National Alternative Fuels Training Consortium (NAFTC) to win a $1.6 million award from the Department of Energy to develop classroom materials to raise awareness of alternative fuels and advanced vehicle technologies. The award was one of 23 projects funded under DOE’s Clean Cities Program with $13.6 million for infrastructure, and was one of only three awards for educational projects.

“CFDC’s expertise with ethanol and its experience with consumer education, workshops, and publications is a perfect complement to a great team assembled by NAFTC,” said Douglas A. Durante, Executive Director, CFDC.

ffv-clubThe second award included the Clean Fuels Foundation and the FlexFuel Vehicle Club teaming with the Tennessee Clean Cities program. The University of Tennessee at Knoxville (UTK) was awarded up to $818,091 to increase the availability of E85 and B20 along I-75. This project will provide E85 and B20 every 200 miles or less, enabling drivers to travel from Sault Sainte Marie, Michigan to Miami, Florida using only one of these alternative fuels. The total project cost is projected to be $1,836,271.

In both of these awards, the actual scope and level of work has yet to be determined. CFDC is one of many groups involved in these efforts but the Coalition will have a significant role as it is very complimentary to current CFDC educational and outreach efforts.

Biodiesel, E85, Ethanol, Ethanol News, News

President Clinton Discusses Economy, Energy at NACS

Joanna Schroeder

clintonPresident Clinton was the keynote speaker during the closing session at the 2009 National Association of Convenience Stores (NACS) conference. His focus during his speech was the American economy, with a few words on the state of health care, education and energy in the mix. But the big question was: is the recession over? His answer: “Yes. No. Maybe.”

If you are an economics professor, the answer is yes. Economists tend to determine the state of the economy using the textbook definition that says that two consecutive quarters of growth signal the end of a recession. If you are a business owner, the answer is no. People are still losing jobs and unemployment is still on the rise and home foreclosures are still increasing. The maybe comes into play, says Clinton, in that we can come out of a depression, but if people get spooked and stop spending, we’ll be right back into the recession. What could cause this? The price of oil going back to $100 per barrel. This may not be that far off as last week saw prices rise to $80 per barrel.

Clinton then went on to say, “We (America) has got to change how we create and exchange energy. Climate change is real.” He also expressed concern that if we lose the ability to feed the people when we need it most, we are going to have water wars and resource wars that make the middle east look tame. Clinton noted that the UK, Germany, Denmark and Sweden are the only four countries to exceed their climate goals. Why? These countries outperformed the U.S. because they created new jobs when they changed how they created and delivered energy.

Although this country has some very difficult challenges ahead of it, Clinton ended his speech with some words of encouragement, “On balance, I am widely optimistic about the future.”

conferences, Energy, Environment, News, water