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Ethanol Groups Refute Science Article

Cindy Zimmerman

All of the major ethanol organizations in the country have made statements refuting an article in Science journal this week regarding indirect land use change effects of biofuels.

“Fixing a Critical Climate Accounting Error”, authored by recognized ethanol-detractor Timothy Searchinger, argues that biofuels and other bio-based energies should be accountable for the biogenic tailpipe and “smokestack” CO2 emissions that are absorbed by growing feedstocks and carbon emissions that could result from land clearing. The authors claim that existing and proposed regulations, such as the so-called U.S. cap and trade bill, create an accounting loophole that will lead to increased deforestation.

Renewable Fuels Association LogoThe Renewable Fuels Association says the authors propose an unnecessary and impossible system that would trace actual flows of carbon. “The real issue is not accounting tactics, but whether biofuels reduce GHG emissions compared to continued petroleum use. There is clear and substantial evidence that they do.” RFA noted in a statement.

Growth EnergyGrowth Energy CEO Tom Buis says that doing what the article suggests “would give an indirect benefit to oil – they’re saying it’s OK to pump oil out of the ground and use trees to absorb the carbon. But that does nothing to address our country’s dependence on expensive and carbon-intensive fossil fuels like oil, extracted from overseas oil fields or tar sands, where emissions are three to five times the rate of normal crude oil production.”

ACEBrian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE) notes that “Searchinger is not a scientist, economist, or agronomist who has taken the time necessary to study whether his theories about land use and biofuels are validated by on-the-ground measurements. He’s an attorney who appears to have a political ax to grind against biofuels. New technology makes corn ethanol more efficient and sustainable each and every day, while future sources of oil get less efficient and more harmful to the environment.”

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

Ethanol Report From NACS

Cindy Zimmerman

nacsThe largest gathering of retailers who sell fuel to the public has been going on this week in Las Vegas. The NACS show, which is the annual meeting of the Association for Convenience and Petroleum Retailing, draws some 10,000 visitors from all over the country and even internationally.

Ethanol Report PodcastIt was the first opportunity for the Renewable Fuels Association (RFA) and the American Coalition for Ethanol (ACE) to promote the recently introduced BYO Ethanol blender pump program to retailers. Domestic Fuel reporter Joanna Schroeder was there and talked to Robert White of RFA and Ron Lamberty of ACE about the program, blender pumps in general, and feedback from retailers for this edition of “The Ethanol Report.”

You can subscribe to this twice monthly podcast by following this link.

Listen to or download the podcast here:

ACE, blends, Ethanol, Ethanol News, Ethanol Report, RFA

Montana More than Doubles its Wind Energy Output

John Davis

NaturEnerA new wind energy farm in Montana will more than double that state’s wind energy output.

The $500 million Glacier Wind Farm in Northern Montana is now the biggest in the state, putting out more than 210 megawatts and joins Montana’s Judith Gap farm, which produces 135 megawatts of power. This article in the Great Falls (MT) Tribune says Gov. Brian Schweitzer and NaturEner USA officials were on hand for the completion ceremony:

schweitzer1“This wind farm is one of the reasons Montana is on the map as a leader in wind energy development,” Schweitzer said.

NaturEner USA began construction of the Glacier Wind Farm near Shelby in 2008. It is to be built in two phases.

Schweitzer spoke at the official ground breaking of the first phase on July 17, 2008. The 106.5 megawatts of power from that phase went online at the end of October 2008.

With the completion of the second phase, the entire 210-megawatt output is now on the electrical grid, according to the governor’s office.

San Diego Gas and Electric, an investor-owned utility in California that serves 1.2 million customers, is purchasing some of the power produced at the Glacier Wind Farm.

And yet another wind farm is planned for that area. The $800 million Rim Rock project will feature 206 turbines generating 309 megawatts of power, making it one of the largest wind farms in the Northwest United States.

Wind

Biodiesel Makers Win Canadian Cleantech Award

John Davis

BIOXA pair of pioneers in biodiesel production in Canada have been recognized for their green efforts.

Timothy Haig and Kevin Norton of BIOX Corp picked up the 2009 Ontario Ernst & Young Entrepreneur of The Year – Cleantech Award. They were congratulated by the Canadian Renewable Fuels Association:

CRFA1“BIOX is globally recognized as a biodiesel pioneer, and today’s cleantech entrepreneur award for Tim and Kevin is an affirmation of their pioneering efforts,” said Gordon Quaiattini, president of the Canadian Renewable Fuels Association. “BIOX is proof of the promise of renewable fuels in Canada. They are reducing harmful greenhouse gas emissions, diversifying the fuel supply and creating new high value jobs.”

Th BIOX biodiesel plant in Hamilton, Ontario, one of the largest continuous flow biodiesel production facilities in the world, cranks out about 15 million gallons of the green fuel a year.

Biodiesel, International

Soybean-based Biodiesel Back in the Black

John Davis

AgMRC1It looks like soybean-based biodiesel is returning to profitability.

This article from Biodiesel Magazine says the USDA-funded Agricultural Marketing Resource Center model shows that a hypothetical, soy biodiesel plant has reversed a six-month trend of losses and would now be operating in the black.

The overwhelming impact of soybean oil prices, which amount to close to 90 percent of the overall cost of biodiesel production, is shown in the comparison of September’s improving numbers with the poorest month, May 2009. The biodiesel revenue for that month was actually slightly higher than September at $3.10 per gallon. However, soy oil was 38 cents a gallon higher at $2.73 per gallon, natural gas remained the same at 3 cents per gallon and methanol cost was lower in May at 6 cents per gallon. AgMRC’s model plant showed a total breakeven cost per gallon, including variable and fixed costs of $3.32 for that low month of May 2009. The net return over variable costs was 4 cents per gallon in May and the net return over all costs was a negative 22 cents per gallon.

It should be noted that the model indicated negative net returns over all costs for the latter half of 2007 turning to positive in March of 2008 until March of 2009. During that year, biodiesel revenue started at $5.16 per gallon, peaked at $5.51 in June 2008 and dropped to $2.68 per gallon when the net return over all costs dropped into the red. EIA reports the spot diesel price at Chicago a year ago in October, 2008, was $2.85 cents per gallon.

The article adds that this model doesn’t tell the whole soy biodiesel story, admitting that a drop in petroleum prices has pushed regular diesel to prices significantly lower than biodiesel… if the $1 per gallon blenders tax credit is not taken off the price of a gallon of biodiesel. But the report does give hope that some of the pressure on the biodiesel industry is letting up.

You can read the report for yourself here.

Biodiesel, USDA

Update On UF Renewable Fuels Center

Chuck Zimmerman

Sheilachu GomezOne of the nation’s largest farm shows is the Sunbelt Ag Expo in Moultrie, GA. I’ve been attending thanks to the support of Growth Energy and covering the show on our AgWired website. I did find a couple of stories I thought I’d share with you here including this one from the University of Florida exhibit.

One of my stops in their building included the Florida Center for Renewable Chemicals & Fuels. On hand to tell their story and give us an update on their activities was Sheilachu P. Gomez, Assistant Director, pictured here. She says the Center is primarily for the development of the technology to convert biomass to ethanol and organic acids. They have two patents that have been purchased by two companies already (an ethanol patent to Verenium and organic acids patent to Myriant). They have a pilot plant for cellulosic ethanol production to optimize biomass conversion at the campus and have a planned plant to be located in Perry, FL. The last is a partnership with Myriant and Buckeye. In the future Sheila says they’re looking more into the value added products of the production process.

You can listen to my interview with Sheila below:

Feel free to browse my photos from the show: Sunbelt Ag Expo 2009 Photo Album. I will have another story on switchgrass posted soon.

Audio, Cellulosic, Ethanol, University

Solar, Wind Top Survey Choices for Green Energy

John Davis

NielsenreportAmericans want green energy choices, with the largest motivating factor for those choices being saving some greenbacks. And the top choices for that green-saving energy are solar and wind.

The latest Nielsen Company Energy Trends report shows that 80 percent of the 32,000 respondents polled cited cutting costs as their main motivation for conserving energy:

Overall, the study shows that many consumers have adopted more environmentally friendly habits, while others have not acted as quickly. “The current momentum surrounding green initiatives and reduced energy consumption presents utilities and home improvement companies with a golden opportunity,” says Jonathan Drost, Account Executive, Energy for The Nielsen Company. “When going green is cost effective, such as opting for Energy Star appliances or government incentive programs, customers migrate in that direction. The biggest hurdle for energy companies is educating the consumer on things like Smart Grids, Energy Efficiency programs and Renewable Green Energy.”

Renewable energy sources are at the heart of the emerging green economy, and if consumers have any say, solar would be their carbon neutral source of choice. “I believe solar came out on top as a preference because it is a technology that consumers can identify with,” Drost offers. “Not only can a consumer place solar panels on their home or purchase solar water heaters, but also they see retailers installing solar panels on their roof and hybrid cars with solar roof options. It’s been a media hot topic as well.”

The survey shows that 37 percent of respondents prefer solar power, and 16 percent want wind.

Only 3 percent of those households surveyed say they plan on buying a plug-in hybrid, but about one-fourth say they would purchase one once the technology became more widely used.

Nielsen officials say more consumer education is needed to bring in the next wave of renewable energy “early adopters.”

Electric Vehicles, Solar, Wind

Company to Turn Natural Gas & Biogas into Clean Diesel

John Davis

ARCA Nevada company is looking to turn natural gas and biogas, such as methane from garbage dumps, into a clean form of diesel.

GDieselAdvanced Refining Concepts, LLC is building a 100,000-gallon-a-day plant 10 miles east of Reno in Northern Nevada that will use a proprietary pollution-free process, called ClearRefining™, that liquefies natural gas and other biogases into a product they call GDiesel™, comparable to No. 1 diesel fuel:

“Beginning construction of this facility is an important milestone for ARC, advancing our goal of making America energy independent by reducing this country’s need for foreign crude oil imports,” said Peter Gunnerman, co-founder of Advanced Refining Concepts. “We expect the GDiesel™ produced at our Peru Heights facility initially will be used for large fleet operators, power producers or as blend stock.”

The facility, which will employ 25 full-time workers, will consist of 10 fully automated ClearRefining™ units, each capable of producing up to 10,000 gallons of GDiesel™ per day. “The location we’ve selected just outside of Reno is ideal for this venture,” said Gunnerman. “The facility has convenient access to natural gas, existing fuel lines and is strategically located near rail and truck lines.”

The plant is scheduled for completion by January 2010.

biogas, Natural Gas

Verenium to Test Technology for Cellulosic Ethanol

Cindy Zimmerman

Verenium Corporation has entered into an agreement to test the effectiveness of technology for the creation of cellulosic ethanol from pulp and paper processing.

VereniumThe is agreement with Value Prior to Pulping (VPP), an organization created by the Agenda 2020 Technology Alliance, a special project of the American Forest and Paper Association, and CleanTech Partners, Inc. VPP is funded by the U.S. Department of Energy (DOE), the State of Wisconsin and several large forest products companies.

“We are pleased to be partnering with VPP and enthusiastic for the opportunity to explore the potential of our C5 technology to create biofuels from feedstocks sourced from the pulping process,” said Gregory Powers, Executive Vice President of Research and Development of Verenium. “Integrating ethanol production into the pulping process could create an attractive market opportunity for Verenium and the pulping industry. If this project proves successful, Verenium will be well positioned to enable this new source of low-cost biofuels.”

It is estimated that a typical 1500 ton-per-day kraft mill could produce approximately 15 million gallons of ethanol annually. The total potential market opportunity is estimated to be between 1.5 and 2 billion gallons of ethanol per year.

Cellulosic, Ethanol, Ethanol News

Electric, E85 and Biodiesel Lead Auto X Prize Finalists

John Davis

auto.xA mix of electrically powered and biodiesel and E85 ethanol fueled vehicles lead the list for the Automotive X Prize.

This story from Consumer Reports says the $10 million prize will go to the team that makes a production-ready car that gets 100 mpg or the energy equivilant AND is sold at a profit for a reasonable price:

“The teams and vehicles represented in this group are the most viable in our competition and we believe that together they are positioned to make a huge impact on the automotive marketplace,” noted X Prize CEO and Chairman Dr. Peter Diamandis.

These teams are entering 53 cars total, split between two classes: 28 Mainstream and 25 Alternative…

The finalists represent a diverse group, with teams heralding from 14 states and 10 countries total. The vehicles use a wide range of powertrains, with 16 running on gasoline, 22 battery-sourced electric, six E85, six biodiesel, two diesel, and one natural gas.

The next step for the 43 teams of finalists will be test their vehicles next spring.

Biodiesel, E85, Electric Vehicles, Ethanol, Ethanol News, News