NBB Formally Responds to Europe’s Biodiesel Sanctions

John Davis

nbb-logoIn March, the European Commission imposed tariffs of 26 euros ($34.51) to 41 euros ($54.42) per 100 kg (220 lbs) on American biodiesel, virtually shutting the Yankee green fuel out of the European market.

Today, the National Biodiesel Board (NBB) turned in formal written comments to the EC’s decision to impose those provisional antidumping (AD) and countervailing duties (CVD) on U.S. biodiesel entering Europe, citing procedural and factual shortcomings in Europe’s decision:

feraci“The comments we have filed highlight that arbitrary procedural conclusions and inaccurate market assumptions were used by the EC as the basis for imposing provisional duties on U.S. biodiesel,” stated Manning Feraci, NBB’s Vice President for Federal Affairs. “The rationale used to impose AD and CVD duties – which clearly benefit the interests of European biodiesel producers – runs afoul of the EU’s WTO commitments.”

The NBB’s comments plainly illustrate that the European industry has not been harmed by U.S. competition, a fundamental fact that must be proven before duties can be finalized later this year. The comments filed by the NBB also note the faulty procedural assumptions that are utilized in the EC’s ruling, specifically relating to the arbitrary decision to change the definition of the product under investigation. In addition, the provisional ruling also appears to omit key information from significant EU biodiesel producers that would be detrimental to the European Biodiesel Board’s (EBB) claims in the investigations. Strikingly, the EU producers that are alleging harm in the complaints have increased their market share by 5.8% and posted a 5.7% profit, which is quite healthy by industry standards.

Feraci adds that he hopes the EC will recognize the value of the NBB’s comments and meet its WTO obligations.

Biodiesel, NBB

Wind Farming For Electricity

Chuck Zimmerman

Farm Foundation Mark WillersBiofuels like ethanol and biodiesel weren’t the only energy alternatives on the program at the Farm Foundation Transition To A Bio Economy Conference. We also had a presentation on wind energy from Mark Willers, Minwind Energy.

Mark says Minwind Energy was formed by a group of local farmers and businessmen in southwest Minnesota. He’d like people to understand that the electrical grid in the United States needs to be upgraded due to continuing increases in the use of electricity and how that is accomplished and funded is going to be an important issue. He thinks Americans want and need an energy policy that’s focused on efficiency. He says that Congress has extended production tax credits for wind turbines and that’s been helpful.

I thought he made some interesting points about how much news and discussion focuses on liquid fuel like gasoline when the largest energy use in America is from electricity. This is the sector of energy use that wind makes its contribution into.

You can listen to my interview with Mark here: [audio:http://www.zimmcomm.biz/farm-foundation/ff-global-09-willers.mp3]

You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

Audio, Energy, Farm Foundation

NEVC Forms Foundation

nevf_logo1The National Ethanol Vehicle Coalition (NEVC) has formed the National Ethanol Vehicle Foundation (NEVF). This foundation was introduced to provide Americans with an opportunity to contribute to advancing the nation’s use of renewable transportation fuels such as E85 and other high level blends of ethanol.

“The proceeds of funds contributed to the NEVF will solely be used to increase awareness of the benefits of using domestically produced ethanol as a form of alternative transportation fuel,” noted NEVC Executive Director Phil Lampert. “The NEVF strongly supports ethanol produced from both agricultural feed stocks and cellulosic materials.”

The NEVF’s mission will be to continue to promote a domestically produced fuel that: Advances jobs for Americans; reduces greenhouse gas emissions; and promotes American energy independence.

To make a 100% tax deductible contribution to the NEVF, click here.

E85, Ethanol, National Ethanol Vehicle Coalition, News

Biodiesel According To Feraci

Chuck Zimmerman

Farm Foundation Joel VelascoThe legislative guru for the National Biodiesel Board is Manning Feraci. He was on the Farm Foundation Transition To A Bio Economy Conference program.

He gave us an update on the current state of the biodiesel industry and the need for stable policies coming out of DC. He says that he sees some real opportunities now as some of the energy bill mandates are being implemented. He says it’s also a good time to get some structural reforms to the biodiesel tax incentive that will make it work better. I asked him about the carbon issue and he says that biodiesel is such an efficient fuel that it makes the product a good fit in helping obtain green house gas emissions reductions.

You can listen to my interview with Manning here: [audio:http://www.zimmcomm.biz/farm-foundation/ff-global-09-feraci.mp3]

You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

Audio, Biodiesel, Farm Foundation

Report Finds Ethanol is Reducing GHG

Cindy Zimmerman

A new report has found that ethanol use is contributing to a growing reduction in greenhouse gases on a global scale.

GHG GeniusUsing a model for lifecycle assessment of transportation fuels called GHGenius, report author Don O’Connor examined greenhouse gas (GHG) reductions from grain ethanol since 1995 and projected GHG reductions from ethanol out to 2015. The important conclusion was that GHG reductions will grow by over 100% from 1995 to 2015.

“I think what the study has documented is the importance of time in life cycle assessment work,” said report author Don O’Connor. “This issue in general has been overlooked by people.”

Global RFAThe report was commissioned by the International Energy Agency (IEA) Bioenergy Task 39 and the results were announced today by the Global Renewable Fuels Alliance (GRFA), an organization which represents over 60% of the global biofuels production from 30 countries.

GRFA spokesperson Bliss Baker says the report clearly illustrates the improving environmental performance of ethanol compared to gasoline. “This report demonstrates that governments must develop energy policies that take into account the increasing efficiency of global ethanol production and do not rely on out-of-date data and out-dated straw man arguments,” said Baker.

The research also found ethanol’s energy balance continues to improve as well. In 2005, the energy balance ratio for grain ethanol was estimated at 1:1.42, meaning every unit of energy used to produce ethanol returned 1.42 units of usable energy to the consumer. By 2015, the energy balance ratio is expected to be 1:1.93, a 55% increase in energy efficiency in just 10 years.

Read the entire report here.

Listen to comments from Baker and O’Connor during a press conference Wednesday morning:
[audio:http://www.zimmcomm.biz/rfa/grfa-iea.mp3]

Audio, corn, Environment, Ethanol, RFA

Capitalizing on Current Biofuels Industry Distress

Joanna Schroeder

20081121_verasunplant_2The purchase of seven VeraSun plants by Valero Energy has caused quite a buzz in financial circles and within the biofuels industry. This sale marked the most significant entrance into the ethanol market by an oil company. So what does this mean and who will this benefit? These questions and others will be answered during the interactive webinar:  Who Will Benefit from the Biofuel Industry’s Current Distress? The webinar, hosted by INFOCAST, is scheduled for April 2 from 1:00 -2:30 ET.

The webinar will cover several topics including the state of the industry; what the VeraSun Energy bankruptcy auction means for the future consolidation of the industry; possible roles the oil industry will play in the biofuels industry moving forward; predictions on what the biofuel industry look like in the next 1-5 years; and general information about the economic health and future lending opportunities.

To learn more and to register for the webinar, click here.

Ethanol, Webinar

Book Review: Hope for a Heated Planet

Joanna Schroeder

0422auAs we approach the 39th celebration of Earth Day on April 22nd I’m integrating a few environmental books into the repertoire. Too many people criticize the “crazy tree huggers” as doing more harm than good, but “Hope for a Heated Planet” author Robert Musil offers a different take to approaching the environmental challenges our world faces, one that in my opinion was too long in being recognized.

hope-for-a-heated-planet5“…if Americans and a new, broader environmental and climate movement are to be successful, we will need to find more successful ways to think and talk about—or frame—global climate change and its serious impacts already becoming visible around the country.” One way to reframe this conversation, says Musil, is show people that the environment is not just around us but inside us. “It is us.”

Musil is a strong proponent of the development of alternative energy but he cautions us not to rely on the government to make this happen. “Now that we have entered a new, audacious era of hope with President Barack Obama, I should warn you and give away my ending. President Obama alone will not save us from the destruction of the planet, nor will the new 111th Congress.”  Read More

book reviews

Valero Finalizes Ethanol Plant Deal

Cindy Zimmerman

The largest petroleum refiner in North America is now officially in the ethanol business.

ValeroThe sale of five ethanol plants and a development site from bankrupt VeraSun to Valero Renewable Fuels officially closed at 12:01 a.m. CDT today. The facilities are located in Aurora, S.D.; Fort Dodge, Charles City, and Hartley, Iowa; and Welcome, Minn., and the development site is in Reynolds, Ind.

Valero Renewable Fuels is a subsidiary of Valero Energy Corporation, North America’s largest petroleum refiner and marketer based in San Antonio, Texas. Valero purchased the ethanol production facilities in Aurora, Fort Dodge, Charles City, Hartley and Welcome, in addition to the Reynolds site, for $350 million.

Valero also successfully bid $72 million for a facility in Albert City, Iowa facility and $55 million for one in Albion, Nebraska, which are expected to close in the coming weeks. VeraSun also expects to close on the sale of its remaining facilities in the next several weeks.

Ethanol

Ethanol and Earth Groups Write EPA

Cindy Zimmerman

NRDCThe Natural Resources Defense Council (NRDC) and the Renewable Fuels Association (RFA) are calling on the Obama administration to “follow a transparent, science based process in determining the rules for the Renewable Fuels Standard (RFS), including the key issue of greenhouse gas emissions.”

RFA“We must ensure biofuels are done right,” said Franz Matzner, acting legislative director for NRDC. “A key step is for EPA to accurately determine the global warming emissions associated with biofuels by using the best science and economic data available.”

Signing a joint letter to EPA Administrator Lisa Jackson and Office of Management and Budget (OMB) Director Peter Orzag, the groups underscored the need to move quickly to get the rule for RFS on the street. Also emphasized was the need to provide the full spectrum of data, assumptions, and methodologies used to design the program, which mandates 36 billion gallons of biofuel production by 2022.

“Proven science must be the driver behind any effort to calculate the global warming emissions of any fuel, including petroleum and biofuels,” said RFA President and CEO Bob Dinneen. “It is vital that EPA provide full transparency into its process and allow for informed comments on their approach. We urge EPA to issue its proposed rule post haste and begin the process of public commentary.”

Environment, Government, RFA

Biodiesel, Ethanol, Wind & Solar Set Records in 2008

John Davis

ronpernick1Alternative energy, including biodiesel, ethanol, wind and solar power, set a record in 2008.

This column posted on RenewableEnergyWorld.com from Ron Pernick, the co-founder and managing director of clean-tech research and publishing firm Clean Edge, Inc., which is publishing the newly-released Clean Energy Trends 2009 report, points out that the three major clean-energy sectors grew more than 50 percent from $75.8 billion in 2007 to $115.9 billion in revenues in 2008:

The report shows that this significant increase in revenue was due to continued growth in solar PV, wind and biofuels deployment globally. For example, solar PV expanded from 2.8 gigawatts (GW) installed in 2007 to 4.2 GW in 2008. Over the same time frame, biofuels increased from 15 billion gallons to nearly 20 billion gallons, with Brazil using more gallons of ethanol than petrol-based gasoline for the first time. Wind power expanded from 20 GW installed in 2007 to 27 GW in 2008, with the U.S. becoming the largest generator of wind energy in the world after bringing on nearly a third of last year’s global total (8 GW).

We don’t expect to see a repeat performance of such installation or revenue growth in 2009. We project that clean-energy revenues will remain level or decrease slightly, until several key factors begin to turn around. The initial public offering (IPO) market must regain steam — last year saw only 43 total IPOs in the U.S. that raised at least $50 million, compared with 272 one year earlier. As in most other sectors, the credit crisis needs to ease for money to start flowing again for project deployment and new manufacturing facilities. And stimulus-related monies and policies must start to have a direct impact on the market.

Pernick admits that 2009 will be a tough year to get through, but renewable energy continues to have great success. While he doesn’t expect the same growth this year (although he points out what other industry has global growth of more than 30 percent over the past decade), he says the $70 billion in direct spending and tax credits for clean-energy and transportation programs in the U.S. stimulus bill will help a lot.

Biodiesel, Ethanol, News, Solar, Wind