Educating the EPA About Biodiesel

John Davis

Some folks in Missouri are trying to educate the government (I know, I know) about the possible implications of a rule that could hurt the biodiesel industry.

As many of you are aware, the Environmental Protection Agency (EPA) is considering a rule change to the Renewable Fuels Standard (RFS) that would basically leave soybean-based biodiesel out of the RFS… putting the biodiesel component of the RFS in serious jeopardy. This story from Missouri Ruralist says that to preserve soybean biodiesel’s role, representatives from the Kansas City and St. Louis Regional Clean Cities partnered with the Kansas Soybean Commission and the Missouri Soybean Merchandising Council and took some EPA officials on a field trip to a soybean field and a soybean processing facility and biodiesel plant near Kansas City:

“We wanted to be able to show every step of the biodiesel process from the field to the tailpipe,” said Dale Ludwig, executive director of the Missouri Soybean Merchandising Council. “Sometimes people need to see something firsthand before they can truly understand it. We hope this educational session will help government officials make informed decisions regarding biodiesel.”

The EPA ruling calls for indirect land use change to be included in the calculations used to determine biodiesel’s greenhouse gas emissions. In order to qualify for use in the RFS-2, biofuels must demonstrate an ability to reduce greenhouse gas emissions by 50% compared to petroleum-based fuels. Studies have shown biodiesel easily meets that goal by reducing lifecycle carbon dioxide, a greenhouse gas, by 78% compared to conventional diesel fuel. When indirect land use calculations are applied, biodiesel’s emission reductions fall below the 50% threshold.

The indirect land use theory is based off the assumption that an increase in production of biodiesel in the United States results in the deforestation of Brazil and other countries to plant more crops to make up for demand. This assumption penalizes biodiesel for the release of carbon from trees that have been cut down. However, statistics from USDA’s Foreign Agricultural Service show deforestation in the Amazon rainforest has actually decreased since 2004, when U.S. biodiesel production began to increase significantly.

The backers of soy-biodiesel are not confident the EPA will use the best information to make the decision without the right input. Remember this little piece of video where EPA official Margo Oge testified before a House panel in May regarding the indirect land use issue first saying that it takes 64 acres for a gallon of soy biodiesel, and then, correcting herself even more incorrectly by saying it takes 64 acres for corn ethanol and over 400 acres for a gallon of biodiesel. Actually, one acre of soybeans makes 64 gallons of biodiesel and one acre of corn makes over 400 gallons of ethanol.

So, there you go. Don’t forget, the deadline to comment is September 25, 2009. Try to set them right on the biodiesel quantity issue, would you?

Biodiesel, Government

Exxon to Invest Millions in Biofuels

exxonThe oil giant Exxon Mobil, whose chief executive once mocked alternative energy by referring to ethanol as “moonshine,” is about to venture into biofuels. Exxon Mobil Corp. said that it will make its first major investment in greenhouse-gas reducing biofuels in a $600 million partnership with biotech company Synthetic Genomics Inc. to develop transportation fuels from algae.

The agreement could plug a major gap in the strategy of Exxon, the world’s largest and richest publicly traded oil company, which has been criticized by environmental groups for dismissing concerns about global warming in the past and its reluctance to develop renewable fuels.

syntheetic_genomicsDespite the widely publicized “moonshine” remark a few years ago by Exxon’s chairman and chief executive, Rex W. Tillerson, the company has spent several years exploring various fuel alternatives, according to one of its top research officials.

“We literally looked at every option we could think of, with several key parameters in mind,” said Emil Jacobs, vice president for research and development at Exxon’s research and engineering unit. “Scale was the first. For transportation fuels, if you can’t see whether you can scale a technology up, then you have to question whether you need to be involved at all.”

He added, “I am not going to sugarcoat this — this is not going to be easy.” Any large-scale commercial plants to produce algae-based fuels are at least 5 to 10 years away, Dr. Jacobs said.

Exxon’s sincerity and commitment will almost certainly be questioned by its most galvanized environmentalist critics, especially when compared with the company’s extraordinary profits from petroleum in recent years.

“Research is great, but we need to see new products in the market,” Kert Davies, the research director at Greenpeace, said. “We’ve always said that major oil companies have to be involved. But the question is whether companies are simply paying lip service to something or whether they are putting their weight and power behind it.”

biofuels, Ethanol News

High School Biodiesel Team Gets Funds for Research

John Davis

While we here about millions of dollars going to big renewable energy programs, it’s nice to hear about a few bucks going to some small, grassroots efforts. A high school biodiesel program from New Hampshire known for beating some colleges in energy competitions has received $5,000 from an anonymous donor.

This story from the Nashua (NH) Telegraph says the Merrimack High School science department will get the money:

In late June, Superintendent Marge Chiafery received an anonymous letter, saying the writer was so impressed by the school’s Biodiesel Team and Science Olympiad, that he or she wanted to donate $5,000 to the school: $1,000 for each of those two groups and $3,000 to the general science department.

Sean Mueller, James Davis and Tray Sleeper, three MHS science teachers, were each commended in the letter, Chiafery said.

“The donor said they were very pleased with that and wants to encourage more of it,” she said.

Chiafery said department head John Snell will be thrilled when he learns of the donation and will meet with the teachers when they come back from vacation in August to discuss the best use of the funds.

The only catch is the school district has to accept the money (c’mon, a school district NOT taking money?). Officials say the money will most likely go toward entrance fees for competitions… maybe some more chances to beat those college kids!

Biodiesel, Energy

Renewables to Share in $141 Mil in Stimulus Bucks

John Davis

doeRenewable energy projects in five states and a U.S. territory will share in $141 million in Recovery Act… aka the “stimulus”… funding.

This U.S. Department of Energy press release says that Secretary Steven Chu made the announcement that includes energy efficiency and renewable energy projects in Hawaii, Maine, Nebraska, New Mexico, the Northern Mariana Islands and Texas:

Under DOE’s State Energy Program, states and territories have proposed statewide plans that prioritize energy savings, create or retain jobs, increase the use of renewable energy, and reduce greenhouse gas emissions…

“This funding will provide an important boost for state economies, help to put Americans back to work, and move us toward energy independence,” said Secretary Chu. “It reflects our commitment to support innovative state and local strategies to promote energy efficiency and renewable energy while insisting that taxpayer dollars be spent responsibly.”

With today’s announcement, these states and territories will now have received 50 percent of their total Recovery Act SEP funding. The initial 10 percent of total funding was previously available to states to support planning activities; the remaining 50 percent of funds will be released once states meet reporting, oversight, and accountability milestones required by the Recovery Act.

Activities eligible for State Energy Program funding include energy audits, building retrofits, education and training efforts, transportation programs to increase the use of alternative fuels and hybrid vehicles, and new financing mechanisms to promote energy efficiency and renewable energy investments.

The specifics of how much is going to hybrids and alternatives and how much is going to better light bulbs wasn’t in the press release, but you can be sure that each one of these states will be touting their individual pots of monies. We’ll keep watching to let you know where the money is going.

Government

Ethanol Minute to Focus on Flaws in California Carbon Strategy

galluftDr. Gal Luft, executive director of the Institute for the Analysis of Global Security (IAGS) is this week’s guest commentator on the Ethanol Minute Radio program, which is a national radio show broadcasting interviews with experts from all walks of life including elected officials, celebrities, energy and environmental experts, and businessmen and women. The Ethanol Minute is sponsored by Ethanol Across America.

ethanol-across-americaDr. Luft is an internationally recognized authority on strategy, geopolitics, terrorism, Middle East and energy security. He has been a strong advocate for the increased production of domestic fuels like ethanol.The IAGS is a Washington based think tank focused on energy security and he is a co-founder of the Set America Free Coalition, an alliance of national security, environmental, labor and religious groups promoting ways to reduce America’s dependence on foreign oil. Newsweek Magazine called him a “tireless and independent advocate of energy security,” the business magazine Poder called him “one of the most recognizable figures in modern energy and security issues,” and Esquire Magazine included him in its 2007 list of America’s Best and Brightest.

In this week’s radio message, Dr. Luft challenges recent regulatory efforts by the state of California that blames deforestation on ethanol production while failing to account for the carbon emissions of petroleum production. Furthermore, Dr. Luft calls the failure to account for the military consumption of petroleum while speculating about land use impacts as “intellectually dishonest.”

“Lets not let defenders of the status quo derail us from the cause of achieving energy independence,” said Dr. Luft.

Environment, Ethanol, Ethanol News

Ethanol Industry Mourns Passing of Pioneer

Chuck Zimmerman

Kathy BryanIt is with heartfelt sadness that we report that Kathy Bryan, BBI International has passed away. We received the following alert from the Renewable Fuels Association.

On Saturday, July 11, the ethanol industry lost one its true leaders and pioneers. Kathy Bryan, well-known to so many in agriculture and renewable energy, was a true pioneer for the ethanol industry. As a farm girl from Minnesota, she recognized the value-added benefits of ethanol long before it became fashionable. Kathy was ethanol before ethanol was cool.

She and her family operated a small ethanol plant in the early ‘80s. She worked for the creation of the Minnesota Ethanol Commission and became its first Chair, where she helped to shape the state’s aggressive ethanol policy, a program so successful it is now commonly referred to as the “Minnesota Model.” Later, as a board member of the Renewable Fuels Association, she lobbied for ethanol at the national level. And, of course, with her husband Mike she formed BBI, International, a global biofuels consulting and publishing company. Read More

Ethanol, Ethanol News

New Ethanol Awareness Efforts

Cindy Zimmerman

The Renewable Fuels Association is targeting motorcyclists and increasing its on-line presence with new marketing efforts.

Ethanol Report PodcastThis edition of “The Ethanol Report” features an interview with Renewable Fuels Association Director of Market Development Robert White about some new tactics they are using to promote ethanol and answer questions about its use. White talks in particular about one upcoming event that will target thousands of motorcycle enthusiasts, RFA’s new website “Choose Ethanol,” and using social media tools to reach out to the public.

You can subscribe to this podcast by following this link.

Listen to or download here:

Audio, Ethanol News, Ethanol Report, Promotion, RFA

Wash. State Slated for $2 Mil in Algae Biofuels Research

John Davis

pattymurrayWashington State University is set to get $2 million for its algae-biofuels research, thanks to that state’s senior senator.

This press release from U.S. Senator Patty Murray (D-Wash.) says she was able to use her position on the Senate Appropriations Committee to put the money in the fiscal year 2010 Energy and Water Development Appropriations bill:

“This funding will support cutting-edge research that will create jobs and continue to position Washington state as a leader in the clean energy economy,” said Senator Patty Murray. “It provides a shot in the arm for Washington state biofuels research, and will help our country move toward cleaner and more efficient energy use.”

The WSU Algae Biofuels project is a partnership between WSU and the Seattle-based Targeted Growth Inc. It will create high-skill jobs in both Pullman and the Puget Sound area and provide researchers with the resources they need to develop new, energy-efficient algal fuel sources. Algae is a particularly promising candidate for fuel use, as its efficiency in capturing solar energy results in higher productivity per unit area than a traditional biofuel energy crop.

The money passed the Energy and Water Appropriations Subcommittee and now goes to the full Appropriations Committee before going to the full Senate for consideration.

algae, Biodiesel

Texas Farmers Working on Sugarcane Ethanol Plant

Cindy Zimmerman

sugarcaneSome Texas farmers believe that if Brazil can produce ethanol from sugarcane, they can too.

Jasper County, Texas is located in the southeast part of the state, north of Houston and not too far west of Louisiana. The North Jasper County Renewable Fuel Farmers Cooperative Society is planning to build a 300,000 gallon per year ethanol production plant, using sugarcane for the feedstock. The group is seeking a federal minority business grant for the project and getting support from the county economic development council.

Read more about their plans from the Beaumont Enterprise and KDFM News.

Ethanol, Ethanol News

USDA Reduces Forecast for Corn Ethanol Use

Cindy Zimmerman

The U.S. Department of Agriculture lowered the forecast for corn expected to be used for ethanol this marketing year in the latest report out on Friday.

USDA GlauberCorn for ethanol use in 2008-2009 was lowered by 100 million bushels in USDA’s July World Agricultural Supply and Demand report, to 3.65 billion – which is still up more than 600 million bushels from last year and about 500 million less than they are forecasting for next year.

USDA Chief Economist Joe Glauber says the financial situation for ethanol producers is better than it was earlier this year. “We have seen positive margins come back for the ethanol industry, particularly with the lower prices for corn and higher prices for gasoline, those margins have come back very strong,” he said. “But, if we look at ethanol production and gasoline consumption in the U.S., both those have been off a bit.” Which means reduced production of gasoline blends with ethanol in May and June, based on the most recent weekly data.

The prediction for next marketing year is that ethanol production will use 4.1 million bushels of corn – up almost 12 percent from this year.

corn, Ethanol, Ethanol News, USDA