Buick City Could Become Biodiesel City

John Davis

buicklogoWhat has been a symbol of failure for some of the American automobile industry could become a shining example of green jobs in the U.S. biodiesel industry.

This story from the Flint (MI) Journal says that idled for 10 years, “Buick City,” the former Flint, Michigan General Motors plant that once cranked out cars, could soon become a hub for soybean products… including biodiesel:

The plans: shipping soybeans, a plentiful commodity in Michigan, to and from the site and producing biodiesel.

The move is expected to bring development and hundreds of jobs to the former General Motors production super site.

West Michigan businessman Gary Wruble said he represents a group of investors who are interested in shipping soybeans to and from Buick City, which developers want to turn into a truck-to-train intermodal hub.

Keith Edwards, senior development director at the Genesee Regional Chamber of Commerce, confirmed Wruble is involved with the project’s investment team.

Michigan farmers in 2008 grew nearly 2 million acres of soybeans. Soybeans have numerous uses. They are an ingredient in popular products we eat such as margarine and salad dressing. And, they have industrial use in items ranging from candles to hand cleaners.

Plus, soybean oil is used to make a make renewable biodiesel fuel to power diesel vehicles.

While the 600 jobs the new venture could produce doesn’t come close to the 20,000 jobs the area used to support in its heyday, it is a start and could give a green future to an area known as a toxic waste dump for the last decade.

Biodiesel

BIO to Congress: Don’t Put Biofuels in Double Jeopardy

John Davis

BIOThe Biotechnology Industry Organization (BIO) is trying to head off any possible efforts to subject biodiesel and ethanol to another set of greenhouse gas emission regulations that would effectively put the green fuels under a double jeopardy situation.

Arguing that biofuels are already regulated under the Renewable Fuels Standard, BIO has sent a letter to Sen. Barbara Boxer (D-Calif.), chair of the Senate Committee on Environment and Public Works, asking that recently drafted cap-and-trade legislation be amended to clearly state that biofuels, including the biofuel component of fuel blends, are not obligated under the emissions cap:

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, stated, “When it comes to climate change legislation, Congress has focused a great deal of attention on stationary emission sources, such as coal-fired power plants. We cannot, however, achieve a low-carbon future without biofuels, because biofuels can play a key role in reducing direct CO2 emissions from the transportation sector. While fossil fuels release carbon that has been stored deep underground for millions of years into the atmosphere, biofuels recycle atmospheric carbon. In some cases, biomass production can sequester more carbon in the soil than is released into the atmosphere through biofuel combustion. Biofuels should therefore not be treated in the same manner as fossil fuels under any climate change cap-and-trade legislation.

BIO goes on to point out that under the RFS, biofuels are already required to achieve substantial lifecycle greenhouse gas improvements compared to petroleum-based fuels.

BIO, Biodiesel, biofuels, Ethanol, Ethanol News, Government, Legislation, News

Study Finds Ethanol Enhances Vehicle Efficiency

Cindy Zimmerman

A new University of Nebraska study finds that higher ethanol blends increase engine efficiency.

The study, which was funded by the Nebraska Corn Board, found that high ethanol blends provide better energy conversion within an engine than other fuels, meaning less energy to travel further. The report says that e85 improved energy conversion by 13, 9 and 14 percent, respectively when compared to e10, for the light, medium and heavy loaded vehicles tested.

dynamometerVehicles went through chassis dynamometer testing as part of the study. The dynamometer simulated different road and vehicle operating conditions, allowing researchers to fully measure a number of important data points to measure the performance of different ethanol blends.

The researchers acknowledged that higher ethanol blends like e85 have a lower energy density, or fewer BTUs per gallon, than e10. That often leads to fewer miles per gallon for higher ethanol blends, but that gets partly offset by ethanol’s improved efficiency.

“While fewer BTUs typically means fewer miles per gallon, energy density is only part of the equation when considering fuel economy,” said Loren Isom, one of the researchers in the study.

“Fuel economy is actually a combination of fuel efficiency and fuel price, and on that point, higher ethanol blends may be the better choice,” said Isom, who is with the University of Nebraska’s Industrial Agricultural Products Center. “It just depends on fuel prices at the time. Specific vehicles may test out differently based on engine design and settings, but increased efficiency from ethanol blends make sense, and for the fuel prices we looked at in the study, e85 was the best choice every time.”

Read the entire report on-line here.

blends, corn, E85, Ethanol, Ethanol News

Verenium to Offer Shares of Common Stock

Cindy Zimmerman

Verenium Corporation has announced a proposed public offering of common stock, subject to market and regulatory conditions.

VereniumAccording to the company, the offering is expected to price before 9:30 am EDT on Tuesday, October 6. Lazard Capital Markets LLC is acting as the sole book-running manager for the offering.

This action follows a 1:12 reverse stock split of the company’s common stock last month.

*Post Update – Verenium Corporation announced today that it has priced an underwritten public offering of 2,250,000 shares of its common stock and warrants to purchase an additional 900,000 shares of common stock at a price to the public of $6.00 per unit. Each unit consists of one share of common stock and a warrant to purchase 0.40 of a share of common stock. The shares of common stock and warrants are immediately separable and will be issued separately. The warrants have a five-year term and an exercise price of $7.59. Net proceeds after estimated underwriting discounts and commissions and estimated expenses, will be approximately $12.3 million, providing the Company with several additional months of operating capital into 2010. The offering is expected to close on or about October 9, 2009, subject to the satisfaction of customary closing conditions.

Ethanol, Ethanol News

Dyadic Recieves FDA Approval on New Enzyme

Joanna Schroeder

Dyadic International, Inc. has recently announced that it has received approval from the U.S. Food and Drug Administration (FDA) for the use of its C1-derived cellulase enzyme. The enzyme is derived from a genetically modified strain of its patented C1 organism and is used in the fermentation of wine, beer and fruit juices. The approval is known as a “GRAS,” which acknowledges that the product is safe to use in its intended conditions of use.

image_enzymesRichard Jundzil, Dyadic’s Director of Development and Quality noted in a press statement, “Receiving this positive acknowledgment from the FDA regarding our GRAS notification culminates a multi-year product development process and affirms Dyadic’s conclusion that its cellulase enzyme is safe for use by our customers. Dyadic intends to continue to utilize its C1 technology platform for the development of additional specialty enzyme products.”

The enzyme is now offered is a new liquid enzyme product known as “CeluStar CL,” for use in the production of various beverages. The company also plans to identify, co-develop and licensing opportunities for the future production of products derived from C1.

“The new CeluStar CL product further expands Dyadic’s innovative specialty enzyme solutions available for sale to our global customers. CeluStar CL is a value-added enzyme that provides enhanced performance over a wide range of application conditions,” said Brian Murdoch, Dyadic’s Director of Sales.

Company Announcement, Miscellaneous

Hydrogen to be Part of Pittsburgh EEW

John Davis

eewlogoHydrogen will be part of the discussion at Energy & Environment Week… a look at new energy sources, including bioenergy with biomass heat & power and biogas; energy from waste & secondary raw materials recovery; alternative vehicle fuels including biofuels, hydrogen & electric mobility; and energy efficiency in industrial processes going on April 12-16, 2010 in Pittsburgh, PA.

This press release says the hydrogen portion of the conference is being organized by the Mountain States Hydrogen Business Council in association with Freesen & Partner GmbH on April 13-15, 2010.

MSHBClogoThe Mountain States Hydrogen Business Council, a non-profit trade association, is pleased to accept the invitation of Freesen & Partner GmbH to develop and conduct the hydrogen energy conference at EEW. Freesen is the producer of the EEW (www.ee-week.com) which will be held at the Pittsburgh Convention Center. The EEW will include four topical conferences: hydrogen, bioenergy, recycling and energy efficiency. The EEW is designed to raise the profile and intensity of renewable energy in the United States.

The EEW Hydrogen Conference will include a two day program of speakers, panel discussions and a moderated debate of the critical issues in hydrogen today. The program, under development, will be posted shortly. Highlights include: keynote speeches from energy experts of the NETL, Carnegie Mellon University and a special seminar by the WVU Alternative Fuel Training Center. The program also includes demonstrations of hydrogen fueled vehicles and fuel cells.

“The MSHBC conferences have received worldwide recognition for their quality and we believe their leadership in hydrogen will contribute to the impact of the EEW” stated Dr. Ines Freesen, managing director of Freesen & Partner GmbH.

This conference announcement comes after the MSHBC’s successful 5th Annual Hydrogen Energy Implementation Conference in Charleston, WV that was built around the opening of the hydrogen production and dispensing facility at Yeager Airport.

conferences, Hydrogen

Biodiesel Brewing Equipment Up for Sale

John Davis

Sixty million gallons worth of biodiesel-producing equipment will go on sale next month at a location in New Jersey.

maasMinnesota-based Maas Companies is conducting the auction of six, 10-million-gallon lines that are brand new out-of-the-box operations at the Hampton Inn & Suites – Newark Harrison Riverwalk, 100 Passaic Ave, Harrison, New Jersey on November 12, 2009 at 11 am:

Equipment Selling as an Entirety or by the Line.

6 Biodiesel Process Trains in Storage in New Jersey.
The equipment supplier is Greenline Industries and is based on the technology developed and operating in Germany.

MaasbiodieselequipmentEach process train has the following equipment:
Dosing stations
Ion Exchangers
1st Stage Reactor
2nd Stage Reactor
1st stage settling tank
2nd stage settling tanks
Methanol dryer

In addition the following process equipment is common between trains:
Buffer tanks
Catalyst mixing stations
Chillers

Currently Crated, Warehoused and Ready to Transport.

You can inspect the equipment for yourself on Thursday, October 15 10 am to 5 pm and Wednesday, November 11 10 am to 5 pm. In addition, you can see more pictures of the equipment here.

Biodiesel

Ethanol Production Up in July

Cindy Zimmerman

U.S. ethanol producers continue to set new production records.

EIA According to the Energy Information Administration (EIA), American ethanol facilities produced 728,000 barrels per day in July 2009. That is up 114,000 barrels from a year ago. EIA also reports fuel ethanol imports of 42.4 million gallons in July.

Ethanol demand, as calculated by the Renewable Fuels Association, continues to outpace production. According to RFA calculations, demand was 748,000 b/d in July, up from 635,000 b/d a year ago.

Ethanol, Ethanol News, Government, RFA

Renewable Fuels Association Elects 2010 Officers

Cindy Zimmerman

The Renewable Fuels Association (RFA) announced the officers and Board of Directors who will lead the association and the ethanol industry in 2010 during its annual meeting last week in Washington, DC.

Renewable Fuels Association LogoChris Standlee, Executive Vice President of Abengoa Bioenergy, was reelected Chairman of the Board for a third term. Chris was first elected chair in October 2007. Joining Standlee in reelection as an officer is long time RFA member and ethanol industry veteran Nate Kimpel. Kimpel, General Manager of New Energy Corporation in South Bend, Indiana, will continue to serve as RFA Treasurer. Bob Dinneen was also reelected as President of the association, a post he has held since 2001.

Two new officers will join Chris and Nate. Chuck Woodside, Chief Executive Officer of KAAPA Ethanol in Minden, Nebraska, was elected Vice Chairman of the RFA. Dave Nelson, President of Global Ethanol, will fill the role Woodside previously held as Secretary. Global Ethanol operates facilities in Lakota, Iowa and Riga, Michigan.

The Renewable Fuels Foundation (RFF), the education arm of the RFA, also announced its leadership for 2010. They are Chairman Mike Jerke with Quad County Corn Processors; Vice Chairman Bob Sather of Ace Ethanol; Treasurer Mick Henderson o9f Commonwealth Agri-Energy; and Secretary Steve Gardner with East Kansas Agri-Energy.

Ethanol News, RFA

GAO Report Gets Mixed Reviews from Ethanol Groups

Cindy Zimmerman

Ethanol organizations received a Government Accounting Office report on biofuels this week with mixed reviews.

On the plus side, the GAO report indicated that using indirect land use change to evaluate the lifecycle greenhouse gas emissions for biofuels under the Renewable Fuel Standard may be difficult due to uncertainty in how that can accurately be measured. According to the report, “Many researchers told GAO there is general agreement on the approach for measuring the direct effects of biofuels production on lifecycle greenhouse gas emissions but disagreement about how to estimate the indirect effects on global land use change, which EPA is required to assess in determining RFS compliance. In particular, researchers disagree about what nonagricultural lands will be converted to sustain world food production to replace land used to grow biofuels crops.”

That pleased Growth Energy CEO Tom Buis. “On the unsettled science of International Indirect Land Use Change, the GAO has come down firmly on our side of the debate: there is no scientific consensus on ILUC,” Buis said in a statement. “As we’ve said all along, ILUC is a concept and a theory – it is not proven, and there is no agreement in the scientific community that if it exists, how it can be accurately measured. We agree completely with GAO’s assessment that the proposal to incorporate ILUC into RFS would greatly complicate the agency’s ability to complete writing this rule.”

On the downside, the report suggests elimination of the 45 cent per gallon blenders tax credit for mixing ethanol with gasoline. The GAO report says the Volumetric Ethanol Excise Tax Credit (VEETC) “may no longer be needed to stimulate conventional corn ethanol production because the domestic industry has matured, its processing is well understood, and its capacity is already near the effective RFS limit of 15 billion gallons per year for conventional ethanol.”

The Renewable Fuels Association disagrees. “The tax incentive has been instrumental in helping to build a renewable fuels industry in this country. It should remain,” the organization responded in a statement. “As long as petroleum and fossil fuel companies that dominate the energy market continue to receive preferential tax treatment and hidden subsidies, incentives are needed to develop renewable alternatives such as ethanol.”

Read the full GAO report here.

Ethanol, Government, Growth Energy, Indirect Land Use, RFA