Green Plains Buys Two Former VeraSun Plants

Cindy Zimmerman

GPREGreen Plains Renewable Energy will acquire two former VeraSun ethanol plants located in Nebraska, to make it the fourth largest ethanol producer in the U.S.

Addition of these plants will increase the Company’s ethanol production capacity by 45%, from 330 million to 480 million gallons per year.

“The acquisition of the plants in Central City and Ord lowers our cost of production and improves our ability to compete in the industry,” said Todd Becker, Green Plains’ President and Chief Executive Officer. “These plants are in excellent locations. Within the 14 contiguous counties surrounding Ord and Central City, there are over 300,000 cattle on feed and approximately 300 million bushels of corn grown annually.”

Sale of the facilities are expected to close in June and Green Plains plans to have the plants fully operational within 30-60 days of the sale closing.

Ethanol, Facilities

Florida Biodiesel Plant Set to Go On Line

John Davis

The first biodiesel plant in Southwest Florida could soon go on line… although some of its first fuel will be sold a loss.

The Fort Meyers News-Press reports that a site for FL BioFuels LLC’s three-million-gallon-a-year plant should be picked in the next couple of weeks, and one of its first customers will get a substantial discount on the fuel it buys:

The plant is capable of producing 3 million gallons of biodiesel in its first year, said Roy Benton Jr., one of the company’s four owners, and that could bring in more than $5 million. As a result, FL BioFuels’ owners hope doing business with Lee County will pay off.

The county agreed in April to give the company $500,000 from a government grant for the plant. The commission is expected to discuss the grant and biodiesel at its meeting Tuesday.

FL BioFuels is contracted to produce 500,000 gallons of biodiesel a year for the county’s vehicles. The company was required to match the approximately $1.60-a-gallon price the county pays for its truck fuel. The company’s owners say the venture will cost them money because their biodiesel is about $1 more expensive per gallon, costing them about $500,000 per year.

“It’s not a big contract with the county,” Benton Jr., said. “What is does is give us tremendous credibility.”

The feedstock for the biodiesel will be leftover restaurant grease, which is why one of FL Biofuels’ owners… the owner of a Hooters franchise… is involved. Plus, the county is currently buying biodiesel from Malaysia, which clears rain forests to grow the palm oil for its biodiesel.

When it is opened, it will be Florida’s third biodiesel plant.

Biodiesel

No Serious Injuries in Minnesota Biodiesel Plant Fire

John Davis

brewsterfirePeople in the Southwest Minnesota town of Brewster are back in their homes after a spectacular weekend fire at a nearby biodiesel forced their evacuation.

This story from KSFY-TV in nearby Sioux Falls, SD has more details about the Minnesota Soybean Processors Plant fire (and some pretty cool video if you click on the picture to the left):

The fire was so big that the Nobles County sheriff’s officials went to each and every house asking people to leave, including one mother KSFY Action News caught up with.

“When we woke up this morning it was really really a good feeling to know that everything was safe and we could go back home again,” said Bibi Spartz of Brewster.

She and her daughter Breanna were rattled by the explosion. Breanna was babysitting at the time and could hear the explosions and see the fire from a mile away.

“Actually I was pretty petrified, like I didn’t know what was going to happen,” said Breanna. “I didn’t know where we were going to go, so it was really intense.”

Deputy State Fire Marshall Investigator Steve Kellen hasn’t ruled what caused the fire and says the determination of the cause will continue throughout the week but the loss for the plant is substantial.

No serious injuries were reported from the fire.

Biodiesel

Warm Spring Puts Oregon Biodiesel Plant Back On Line

John Davis

sequentialpacificThe SeQuential Pacific Biodiesel plant… the largest biodiesel plant in Oregon… is opening back up for business a month after it had laid off some of its workforce.

This story in the Salem (OR) Statesman Journal says warmer weather is helping move more biodiesel in the state:

SeQuential Pacific Biodiesel in Salem was built to produce 5.8 million gallons of biodiesel per year.

Running at full capacity proved to be impossible after the company couldn’t sell enough biodiesel to continue running its plant. It had to store 250,000 gallons for weeks in early spring until it could find new customers and increase sales to existing customers.

But now, its customers are buying fuel blends that have a higher biodiesel content — blends that sometimes gel in cold weather. The city of Portland’s water bureau fleet, for example, moved from a 20 percent biodiesel blend to a 99 percent biodiesel blend April 15.

“That helped dig our inventory down,” said plant manager Tyson Keever, enough so that last week six people laid off at the end of March were hired back.

The article goes on to say that the closure of the Imperium Renewables biodiesel plant, in nearby Hoquiam, Washington has helped eliminate some of SeQuential’s competition. The Salem refinery will be running at about half capacity.

Biodiesel

ASA: New EPA Rules Undermine Biodiesel Industry

John Davis

uscapitolMembers of the American Soybean Association (ASA) were back on Capitol Hill… this time testifying before the House Small Business Subcommittee on Regulations, Healthcare and Trade that the new proposed Environmental Protection Agency rules are undermining investor confidence in the biodiesel industry.

Biodiesel Magazine reports that the ASA complained the EPA rules, which excludes soy-based biodiesel from the fuels counted under the Renewable Fuels Standard (RFS), will hurt small biofuels producers and family farmers:

At the top of ASA’s list of regulatory policy concerns is the Environmental Protection Agency’s (EPA) Notice of Proposed Rulemaking for implementation of the expanded RFS2. This Proposed Rule, released on May 5, includes several very obvious and immediate flaws and concerns.

asa_logo11“The proposed rule as released contains unprecedented, untested and far-reaching indirect land use assumptions and projections which will adversely impact markets for U.S. farmers and impede our national efforts to reduce dependence on foreign oil and thus impede efforts to improve our environmental footprint,” said ASA Vice President Ray Gaesser, a soybean producer from Corning, Iowa. “We are concerned that EPA has attributed an undue degree of land use causation to U.S. biofuels production and that EPA’s assumptions do not adequately consider the other market factors (population growth, food and feed demand, timber prices, etc.) that have historically driven international land use decisions.”

“We are also very concerned with the potential under the EPA Proposed Rule to require renewable fuel manufactures to prove that their feedstocks meet the definition of renewable biomass,” Gaesser said. “The Energy Independence and Security Act included a prescriptive definition of renewable biomass and the EPA Proposed Rule would limit eligibility to biofuels produced only from feedstocks grown on existing cropland. This requirement could result in the need to provide feedstock certification. Such feedstock certification would be onerous and unworkable.”

You can read all of ASA’s testimony here.

Biodiesel

Hope Meets Destiny

John Davis

destiny1The nation’s first eco-sustainable city, which will use biodiesel, ethanol, solar and wind sources to power the community and its green industries (such as building solar panels), has been selected as one among 16 founding projects of the for former President Bill Clinton’s Climate Positive Development Program.

This press release from Destiny, Florida says the Clinton Climate Initiative (CCI) program supports the development of large-scale urban projects that demonstrate cities can grow in ways that are climate positive… real estate developments that strive to reduce the amount of on-site CO2 emissions to below zero:

The Climate Positive Development Program was launched by President Clinton, Founder of the William J. Clinton Foundation, on May 19, 2009, at the C40 Summit in Seoul, South Korea. Along with the other founding projects, Destiny, Florida will demonstrate Climate Positive strategies, setting a compelling environmental and economic example for cities to follow.

To reduce the net greenhouse gas emissions of their Climate Positive Development projects to below zero, property developers and local governments will agree to work in partnership on specific areas of activity. This includes implementing economically viable innovations in buildings, the generation of clean energy, waste management, water management, and transportation and outdoor lighting systems.

“We are proud of the recognition Destiny has received from the Clinton Climate Initiative as an urban development that can help reduce the world’s carbon footprint. Destiny will be a global model city for sustainable living, and a hub where the latest clean technology innovations will emerge,” stated Anthony V. Pugliese, III, Managing Partner and CEO of Destiny.

The 41,000-acre community in Central Florida was founded in 2005.

Biodiesel, Ethanol, News, Solar, Wind

Senate Bill Would Change Renewable Fuels Standard

Cindy Zimmerman

A bill was introduced in the Senate this week that would keep the Environmental Protection Agency from using non-scientific data when determining greenhouse gas emissions.

grassleyThe bill introduced by Senator Chuck Grassley (R-IA) is a companion to legislation introduced last week by Collin Peterson (D-MN), the chairman of the House Agriculture Committee. Like the House bill, Grassley’s bill improves several provisions with the expanded Renewable Fuels Standard that were enacted in the 2007 Energy Independence and Security Act (EISA).

Grassley says the use of indirect land use changes to determine greenhouse gas emissions makes no sense. “It’s ridiculous to think that Brazilian farmers are looking to see what Iowa farmers are doing to determine how they run their own business, and quite frankly it’s plain unfair to farmers,” said Grassley.

The bill would make sure that greenhouse gas calculations are based on proven science by removing the requirement to include indirect land use changes, and exempts from the lifecycle greenhouse gas reduction requirements any biodiesel plants that were in operation or under construction prior to December 2007 when EISA was signed into law.

Biodiesel, Environment, Ethanol, Government

Advanced Biofuels Workshop Agenda Announced

Joanna Schroeder

Don’t miss out on the Advanced Biofuels Workshop during this year’s Fuel Ethanol Workshop (FEW). This dynamic one-day advanced-biofuels-workshop-logoevent will focus on technology, feedstock management, market challenges, R&D activities, and near-term policy developments supporting advanced biofuels. In addition, the workshop will emphasize the provisions of the RFS and current efforts to commercialize, low-carbon, advanced biofuels technologies.

The workshop takes place on Monday, June 15, 2009 from 8:30 am – 5:00 pm. Sessions include:

•    Biobutanol, Mixed Alcohols & Biobased Hydrocarbons
•    Cellulosic Ethanol
•    Advanced Biofuels Project Development
•    Biomass Based Diesel — Bio-Oil  & Algae

Don’t miss out on learning about where the advanced biofuels industry is headed. You can register by clicking here.

Biodiesel, biofuels, Cellulosic, conferences, Ethanol

Ethanol Lobbyists Top on the Hill

Cindy Zimmerman

There are literally thousands of registered lobbyists who regularly walk the halls of the nation’s capitol buttonholing lawmakers to talk up the benefits or detriments of some piece of legislation to their particular organization members.

Political insider publication “The Hill” made a list the week of who they consider to be the nation’s most influential association lobbyists – and two of them are with the ethanol industry. One is Tom Buis of Growth Energy who is new to ethanol but a political veteran in the agricultural arena. The other is Renewable Fuels Association president and CEO Bob Dinneen who has been ethanol’s advocate on the Hill for over 15 years.

Interestingly, the oil industry has two lobbyists on the list as well – Charles Drevna of the National Petrochemical and Refiners Association and Jack Gerard of the American Petroleum Institute. Especially interesting – no environmental group lobbyists were included on the list.

Ethanol, Government

Book Review – Plug-In Electric Vehicles

Joanna Schroeder

plug-inelectricvechiclescover2I was traveling last week and had the opportunity to rent a Toyota Prius. I jumped at the chance since I was reading, “Plug-In Electric Vehicles: What Roll for Washington,” a book authored by dozens of experts and published by The Brookings Institute. This was my first Toyota hybrid experience. However, I had driven a Ford Escape Flex-Fuel Hybrid two years ago but it has yet to come to market. It took me a bit to figure out how to actually drive the Prius, but once I did, it was an enjoyable ride and the gas mileage was great! 

So why don’t more people drive hybrids? And why aren’t there any hybrid options with a flex-fuel component (the back up for a hybrid is gas) that are actually mass produced? Or should we move to develop and adopt electric vehicles (EVs) or is the best option a plug-in electric vehicle (PEVs). Why isn’t there more government support? All of these questions are asked and answered in the this book.

While the many authors have varying ideas and opinions on the best way to bring EVs to market, there are a few points that most agree.

There needs to be more research done on the batteries (the most expensive component of hybrids and electric cars) and there needs to be an after market for these batteries.  Several authors cited an idea that was first raised by David Sandalow in his book, “Freedom from Oil,” which is the creation the “Federal Battery Guarantee Corporation”. This federal organization would, “underwrite insurance on battery life for the duration of the vehicle warranty…and gaurantee a secondary market for used battery assemblies.”Read More

book reviews