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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

Ethanol Spill in Virginia

norfold_southerAccording to the Alexandria Times, about thirty gallons of ethanol was spilled on a concrete pade at the Norfolk Southern Corporation’s “transloading” facility this morning and the facility failed to notify the Alexandria Fire Department about the spill.

City Manager Jim Hartmann called the incident a “failure to communicate,” a comment epitomizing the company’s relationship with the city. Norfolk Southern opened the facility in April of 2008 after a communication void among city officials and staff resulted in the corporation’s settlement on the West End despite the potential dangers involved with transferring the explosive chemical.

“I firmly request that Norfolk Southern establish a protocol in which the Alexandria Fire Department’s Emergency 911 Communications is immediately notified of all ethanol- and transloading-related incidents that occur within the City of Alexandria,” Hartmann stated in the letter to David Lawson, Norfolk Southern’s vice president of industrial products.

Ethanol fires require a special alcohol-resistant foam that relies on long-chain molecules known as polymers to smother the flames. Industry officials say the special foam costs about 30 percent more than the standard product, at around $90 to $115 for a five-gallon container.

Ethanol, Ethanol News, News

Murphy Oil Company Purchases Ethanol Plant

murphy_oilMurphy Oil Corporation, an international oil and gas company that conducts business through various operating subsidiaries, has purchased an idled ethanol plant in Hankinson, North Dakota.

The 110 million gallon per year corn-based ethanol plant was bought for $92 million. Additionally, an estimated $15 million in working capital will be invested into the facility.

Murphy Oil Corporation’s President and Chief Executive Officer, David M. Wood, said, “We are adding this capability to supplement our growing North American fuels business. “It also marks our initial entry into the manufacture of bio-fuels. Given the current ethanol mandates and our subsequent blending needs, having more of a presence in the supply chain better balances our business.”

He also added, “This plant is favorably located near the feedstock supply and has accessible rail service for carrying the finished product. We should see first production shortly.”

Murphy USA Marketing Co. (Murphy Oil USA, Inc.), a subsidiary of Murphy Oil, operates retail gasoline stations under the Murphy USA® brand across 20 states in the U.S. These retail fueling facilities are primarily in the parking areas of Wal-Mart Supercenters.

Ethanol, Ethanol News, News

DF Cast: RFA, NBB Submit RFS-2 Comments

John Davis

df-logoBack in May, the EPA put out its proposal for the new Renewable Fuels Standard… aka RFS-2… that got a lot of people talking about what is in the new standard.

Some of the biggest backers of some of the greenest fuels, ethanol and biodiesel, are worried RFS-2 will actually keep these mainstays of the renewables out of the program designed to promote those very same green energy sources.

NBB-logoDuring this edition of the Domestic Fuel Cast, we get comments from National Biodiesel Board CEO Joe Jobe and Renewable Fuels Association president and CEO Bob Dinneen about the comments they have just submitted to the EPA.

rfa-logo-09The biggest sticking point is the Indirect Land Use issue, which could charge American renewable fuels makers, especially biodiesel producers, with greenhouse gas emissions for something going on in another part of the world. Plus, Jobe and Dinneen say there are some issues with the baseline numbers and assumptions the EPA is using.

They believe that the RFS-2 can be corrected before it becomes law… if the EPA reads the thousands of comments the two organizations have submitted and heed what is being called common sense advice.

It’s a fascinating discussion, and you can hear more of it here: [audio:http://www.zimmcomm.biz/domesticfuel/DFCast-10-02-09.mp3]

You can also subscribe to the DomesticFuel Cast here.

Audio, Biodiesel, Domestic Fuel Cast, Ethanol, Ethanol News, Government, Indirect Land Use, Legislation, NBB, News, RFA

UNICA to EPA – Sugarcane Ethanol Reduces GHGs

Joanna Schroeder

ABB8763F-8B5F-4D1C-9D02-ED4A29AFCE21In a 40 page letter submitted to the Environmental Protection Agency (EPA), UNICA, the organization representing the Brazilian sugarcane industry, noted that even accounting for theoretical Indirect Land Use Changes, sugarcane ethanol reduces greenhouse gas emissions (GHGs) by up to 85 percent. In addition, the organization cites that sugarcane ethanol is a viable way to help the U.S. meet the advanced biofuels requirements of RFS2 (Renewable Fuels Standard).

“We emphatically demonstrated, with verifiable scientific evidence, that Brazilian ethanol is certainly an appropriate alternative for meeting the advanced biofuel requirements of RFS2,” says UNICA’s Chief Representative for North America, Joel Velasco.

The implementation of RFS2 is more than a year delayed and court actions could be taken if the EPA doesn’t take action quickly. One area of concern has been the question of whether the ethanol industry will, or can, meet the cellulosic ethanol requirements. To alleviate this issue, UNICA has suggested modifying the rules to include advanced biofuels such as sugarcane, rather than drowning cellulosic ethanol via the action of waiving that portion of the mandate.

According to EPA calculations, Brazilian cane ethanol reduces GHG emissions by 44 percent considering a 2005 gasoline baseline. That would classify sugarcane ethanol as an advanced biofuel. Nevertheless, under suggested revisions, UNICA points out that sugarcane ethanol would reduce GHG emissions by 82 percent or more.

“We are confident that EPA will make an independent, scientific determination that sugarcane ethanol qualifies as an advanced biofuel under RFS2,” concludes Velasco.

Cellulosic, Ethanol, News

Biodiesel Brewer Goes into Spuds Plant

John Davis

BioFuelBoxThe waste vegetable oil at a potato processing facility is now becoming the green fuel biodiesel, thanks to some new technology from a California maker of biodiesel refining equipment.

Biodiesel Magazine reports that BioFuelBox Inc. has installed the first of a new biodiesel technology that has been operational since August at the potato plant in American Falls, Idaho:

San Jose, Calif.-based BioFuelBox came out of stealth mode earlier this year with the announcement that its patented and trademarked NovoStream process had successfully overcome a technical obstacle in removing sulfur from biodiesel made from low quality waste-based feedstocks. Reddy described NovoStream as a continuous flow, supercritical process using high heat and pressure to convert free fatty acids (FFA) and triglycerides to biodiesel in one pass with high yields. The process can handle up to 100 percent FFA, high contaminant levels as well as high moisture content. Pretreatment is limited to removing solids and excess water, according to Reddy. He added that the net energy ratio for the process is roughly twice that of standard biodiesel, in spite of the use of more energy for the heat and pressure used in the process. The company says the process yields 7 units of energy out for every 1 unit used, the primary energy savings coming from the minimal energy contribution from on site production and the waste feedstock itself.

BioFuelBoxpicsThe 1 million-gallon-a-year, turnkey operation BioFuelBox modular unit can drop into any place that has a ready supply of biodiesel feedstock. Look for it to become a standard fixture at other places that have lots of grease or oil outputs, giving those places some high-quality biodiesel that they can either use themselves or sell to add value to their products.

Biodiesel

Biodiesel Makes the Team with Pro Sports

John Davis

WeplaygreenGoing to the ballpark, whether its a football field or a baseball diamond, fans are used to seeing plenty of green grass (well, unless you’re a Boise State fan!). But more and more teams are also going green when it comes to the fuel they use in those stadiums.

The National Biodiesel Board has this story about how biodiesel is making the team with many professional sports:

Cincinnati Reds outfielder Chris Dickerson is one of the founders of We Play Green. The group works to unite athletes in encouraging environmental awareness and promoting alternative energy.

“With baseball winding down and football heating up, this is a great time to commend those teams and players who are leading the charge for biodiesel in sustainable venues,” said Joe Jobe, CEO of the National Biodiesel Board.

The Reds’ Great American Ball Park is among the greenest ballparks in the country.

Their efforts range from composting the grass clippings to using biodiesel blends for facility vehicles and standby emergency generators. Also, the park collects waste cooking oil from their kitchens and concession stands for biodiesel producers to use in making the fuel. In the last season, the Reds have sent 8,234 gallons of used cooking and motor oils to be refined for biodiesel. They use biodiesel blends in field and facility maintenance vehicles and equipment, tractors and stand-by emergency generators.

Indiana soybean and corn farmers teamed up with the Indianapolis Colts to educate consumers about the benefits of biofuels. With Colts’ tight end Dallas Clark serving as the official spokesperson, Hoosier Horsepower connects with and educates students of all ages.

“Growing up in Iowa, I understand the importance of biofuels to our farmers and rural communities,” said Clark. “I’m also excited that the Colts will donate $100 in the name of Indiana farmers to a scholarship program for every catch I make this season.”

Other professional sports teams and organizations that are using biodiesel to win the clean energy game include the Philadelphia Eagles, Houston Astros, Seattle Mariners, Boston Red Sox, Washington Nationals, Philadelphia Phillies, San Diego Padres, the Kansas City Chiefs, and sports network ESPN.

Biodiesel

Renewable Energy Interests Praise, Criticize Boxer-Kerry Climate Bill

John Davis

BoxerKerryClimateBillBackers of weaning the U.S. off of non-renewable, foreign petroleum are giving mixed reviews to the latest climate bill introduced today in the U.S. Senate.

Sens. Barbara Boxer (D-Calif.) and John Kerry (D-Mass.) debuted the “Clean Energy Jobs and American Power Act,” an 821-page bill designed to “create clean energy jobs, reduce pollution, and protect American security by enhancing domestic energy production and combating global climate change,” as well as creating millions of green energy jobs. Part of that includes reducing carbon emissions by 20 percent by the year 2020 and 80 percent by 2050 compared to 2005 levels:

This is a security bill that puts Americans back in charge of our energy future and makes it clear that we will combat global climate change with American ingenuity. It is our country’s defense against the harms of pollution and the security risks of global climate change,” said Kerry. “Our health, our security, our economy, our environment, all demand we reinvent the way America uses energy. Our addiction to foreign oil hurts our economy, helps our enemies and risks our security.”

Senator Boxer said, “We know clean energy is the ticket to strong, stable economic growth — it’s right here in front of us, in the ingenuity of our workers and the vision of our entrepreneurs. We must seize this opportunity, or others will move ahead.”

Reaction to the measure has been mixed. U.S. Senator Saxby Chambliss (R-Ga.), Ranking Republican Member of the Senate Agriculture Committee, is not a fan:

Chambliss“As I have stated many times before, I want to support legislation that addresses climate change and provides a more secure energy future for America. Unfortunately, the legislation introduced today by Senators Boxer and Kerry follows the House-passed bill down the path of higher energy costs, job losses and economic pain for no benefit. Further, it would only hurt farmers, ranchers and forest landowners and provide them no opportunity to recoup the higher costs they will pay for energy and the other inputs necessary to work the land. I cannot support this bill.”

But maker of algae-based renewable fuels, Sapphire Energy, sees great potential in the legislation: Read More

Government, Growth Energy, Legislation

San Francisco Calls for More Wind Power

John Davis

Windmills might soon be going up all over San Francisco, as a a task force is recommending that the city start putting up the turbines at places like Treasure Island, the San Francisco Zoo, city parks, and the city airport as demonstration sites for how urban wind farms could help power the city.

The San Francisco Chronicle reports that the recommendations come after a year-long study of the potential of wind power in the city:

“We should absolutely harness the wind,” said Assemblyman Tom Ammiano, who as a city supervisor in July 2008 joined Mayor Gavin Newsom in convening the urban wind power task force, which is publishing the report.

“Now if we could just harness the hot air that comes out of City Hall and the Capitol, we’ll have an answer to global warming,” Ammiano quipped.

The ideas proposed in the San Francisco study are intended to help the city reach its goal of being carbon neutral by 2030. While turbines are typically associated with farms and rural areas, cities like San Francisco are increasingly interested in using what is considered a cleaner energy generator.

City hall itself might even sport its own urban wind farm one day.

Wind