Tesoro’s Lawsuit to Limit Ethanol in California Dismissed

Joanna Schroeder

tesoro_logo1A lawsuit filed by Tesoro Refining and Marketing Company against the California Air Resources Board (CARB) seeking to prevent use of up to 10% ethanol in each gallon of gasoline sold in California will be dismissed with prejudice following the California Superior Court for the County of Sacramento’s rejection of the company’s bid for an injunction against CARB. California passed a mandate that increased the ethanol blend from 5.7 percent to 10 percent. Oil refiners and blenders have until the end of 2009 to comply with the mandate, and CARB is overseeing its compliance.

The Court had determined that The Renewable Fuels Association (RFA) would represent the ethanol industry regarding the case. “The injunction decision by the Court that Tesoro’s lawsuit lacked merit and the settlement to dismiss the case with prejudice clears the way for refiners in California to increase ethanol blending to 10 percent per gallon,” said RFA President Bob Dinneen.

The mandate was put in place to provide flexilibily for refiners to include up to E10 in reformulated gasoline as California continues forward with its legislation to improve air quality standards and reduce toxic emissions from gasoline. The state has also passed a low carbon fuels standard and the ethanol industry has been very active in working with CARB as they develop the standard.

“Tesoro’s claims were without merit and designed to impede open competition from a renewable alternative. The dismissal of this case is critical to a constrained ethanol market that is looking for increased demand. By moving from 5.7 percent to 10 percent ethanol in California gasoline, hundreds of millions of gallons of new demand will be created helping refiners meet federal and state requirements for renewable fuel use and air quality standards,” said Dinneen.

Ethanol, Legislation, RFA

EPA Opens 30 Day Comment Period on E15 Waiver

Joanna Schroeder

epa_logo1The Environmental Protection Agency (EPA) announced today that it is seeking public comments on the “Green Jobs Waiver” that was submitted several weeks ago requesting the current ethanol blend be increased from 10 percent ethanol (E10) to 15 percent (E15). Since 1978, the limit has been set at E10 for conventional (non flex-fuel) vehicles. The comment period will be open for 30 days after the notice is published in the Federal Register which is expected to happen on April 22nd. Last month, the Underwriters Laboratories (UL) certified all current dispensers and components for E15.

In a company statement, Jeff Broin, CEO of POET said, “Lifting the arbitrary cap and allowing ethanol blends of up to 15 percent is our nation’s means to achieve commercial-scale cellulosic ethanol, green jobs and a better environment. It is important that Americans use this comment period to let the Environmental Protection Agency know how important homegrown ethanol is to our nation.”

Growth Energy and 54 ethanol manufacturers submitted the E15 application to EPA on March 6, 2009. Current statute calls for EPA to make a decision within 270 days of receipt, which is December 1, 2009. It is imperative for the biofuels industry that the blend wall is increased in order for the ethanol industry to achieve the biofuel levels as set out in the Renewable Fuels Standard (RFS). Increasing the blend wall will also help ensure that there is a market for cellulosic ethanol when full-scale plants come online.

To learn more about the E15 reques or to submit comments, visit http://www.epa.gov/otaq/additive.htm.

blends, Ethanol, Government, POET

Ethanol, Corn Not Culprit in Rising Food Prices

Joanna Schroeder

The American Farm Bureau Federation, Growth Energy, National Farmers Union, and National Corn Growers Association joined together today to host a media call to applaud the recently released report from the Congressional Budget Office, “The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions.” The report concluded that from April 2007-April 2008 ethanol did have a slight impact on rising food prices but that other culprits, such as high energy prices, had the most impact on rising food costs. Of the 5.1 percent increase in food prices, expanded ethanol production contributed between 0.5 and 0.8 percent of the increase in food prices measured by the consumer price index.

cereal_isleBob Stallman, President of the American Farm Bureau Federation, began by saying, “The results come as no surprise to us. We have called for hearings to determine why food prices have increased. It’s disingenuous to only look at corn when determining why food prices are increasing. We think they owe us an apology.”

Tom Buis, CEO of Growth Energy expanded on the factors that did have the most impact on rising food prices including the weak dollar, increased exports, unregulated energy markets, and oil speculation.  Roger Johnson, President of the National Farmers Union noted that studies have shown that during the same time food prices and gas prices were on the rise, ethanol saved consumers an average of 34 cents per gallon. This equates to nearly $500 per year for the average family.

The ethanol industry has recently filed a “Green Jobs Waiver” or “E15 Waiver” with the EPA to increase the blend level from 10 percent to 15 percent. It has been argued by ethanol proponents that unless the blend wall is increased the industry won’t be able to achieve the goals set out in the Renewable Fuels Standard (RFS) calling for 36 billion gallons of biofuels blended per year by 2022. “We won’t get there unless we make the ethanol industry profitable again and get through the higher blend wall,” summed up Rick Tolman, CEO of the National Corn Growers Association. “We will provide what we need to get to the next generation of biofuels.”

corn, Ethanol, food and fuel, Food prices, Research

Visitors to Pearl Harbor Heroes Shuttled on Biodiesel

John Davis

ussarizona1It was the scene of the “day that would live in infamy.” Now, visitors to the USS Arizona Memorial in Pearl Harbor, Hawaii will be able to pay homage to the more than 1,000 heroes honored with a renewable energy source: biodiesel.

Biodiesel Magazine reports that the shuttle boats running on 20 percent biodiesel from locally owned Pacific Biodiesel, which makes the green fuel from recycled cooking oil, will take passengers to that historic ship:

“Our process accomplishes two important tasks of dire importance, especially for an island community,” explained Pacific Biodiesel President Bob King. “We are recycling waste at a tremendous rate and we are creating a clean renewable fuel.”

Aloha Petroleum currently delivers the biodiesel blend to the Navy’s new clean diesel shuttle fleet. An activation ceremony featuring Hawai’i senior senator Daniel Inouye was held for the first vessel of this new fleet, which arrived in March and is named the John W. Finn in honor of the Medal of Honor recipient and Pearl Harbor attack survivor. The ceremony took place on April 7, 2009 at the Arizona Memorial Visitors Center.

Biodiesel’s ability to biodegrade in water, along with its clean-burning nature, make the fuel perfect for the pristine environment of the blue waters of Pearl Harbor. Maybe one day the only oil around the storied ship will be the drops that still weep from the Arizona in honor of the 1,177 brave Americans who perished on that fateful day.

Biodiesel

National Science Board Calls for More Green Energy

John Davis

nsf1A 25-member panel of researchers that advises the President and Congress on science and engineering issues is calling for more development of sustainable and clean energy sources to transition the country away from fossil fuels.

The National Science Board has released a draft report entitled “Building a Sustainable Energy Future” for public review and comment:

The NSB recommends that the U.S. government develop and lead a nationally coordinated research, development demonstration, deployment, and education (RD3E) strategy to advance a sustainable energy economy that is significantly less carbon-intensive. A sustainable energy economy values environmental and ecosystem stewardship as well as clean, equitable, reliable, renewable, safe, secure, and economically viable energy strategies and solutions.

The NSB offers priority guidance for the National Science Foundation (NSF) to increase its emphasis on innovation in sustainable energy technologies and education.

“Together, these approaches can help to promote national security by increasing U.S. energy independence, ensure environmental stewardship by reducing energy and carbon intensity, and generate continued economic growth through innovation in energy technologies and increases in green jobs,” said Dan Arvizu, co-chairman of the NSB’s Task Force on Sustainable Energy.

The NSB warns that without concerted international action, there would little change in the global energy mix in the next 25 to 50 years.

You can read the NSB’s report and comment here.

Government, Science

Biodiesel By-Product Excellent Swine & Poultry Feed

John Davis

Biodiesel producers are looking for a market for a big by-product of the green fuel they make… livestock producers need a high-quality feed. Seems like they need to find a way to get together. Scientists at the U.S. Department of Agriculture are finding a new use for the glycerin produced during biodiesel refining.

This article from the April issue of USDA’s Agricultural Research Magazine says animal nutritionist Brian Kerr, who works at the ARS Swine Odor and Manure Management Research Unit at Ames, Iowa, William Dozier, formerly in the ARS Poultry Research Unit at Mississippi State and now with Auburn University, and Iowa State University colleague Kristjan Bregendahl are looking into how to use crude glycerin as a livestock feed supplement:

biodieselfeedKerr led studies that examined how crude glycerin feed supplements affected swine energy use. In five different experiments, he supplemented the diets of starter pigs and finisher pigs with different levels of crude glycerin…

Pigs fed the crude glycerin were able to digest it efficiently, and it provided them with a supply of caloric energy that basically equaled that of corn grain. A followup study showed no effects on weight, carcass composition, and meat quality in pigs fed diets containing 5 percent or 10 percent crude glycerin from weaning to market weight.

Meanwhile, Dozier and Bregendahl evaluated the use of glycerin supplements in poultry feed. They used 48 egg-laying hens and 1,392 broilers in 4 research studies.

After feeding four levels of crude glycerin to laying hens, Bregendahl determined the AME in the crude glycerin to be 3,805 kcal/kg. He also compared feed consumption, egg production, egg weight, and egg mass (calculated by multiplying egg production and egg weight) and found no significant differences among the four groups.

The scientists say the research has been successful, as the data shows that crude glycerin is an excellent source of energy for pigs and chickens and doesn’t harm animal performance, carcass composition, or meat quality. They do caution that while the glycerin is a great feed supplement, there are some issues that could limit its use, such as small methanol and salt levels.

But overall, this could be a real win-win situation with livestock producers finding a way to cut feed costs and biodiesel producers finding a way to add value to their products.

Biodiesel

POET Uses Less Water

poetAccording to a POET press release, POET Biorefining in Bingham Lake, Minnesota, has used a new technology wich will eliminate water discharge providing a more efficient way to produce ethanol.

poet_binghamThe 35 million gallon per year facility currently uses less water than average plants. Bingham Lake facility used 3.42 gallons of water to produce one gallon of ethanol. With zero-liquid discharge, that is cut by 23 percent, to an estimated 2.64 gallons of water per gallon of ethanol.

“This process is yet another way POET is working to continue making ethanol production more efficient,” POET CEO Jeff Broin said. “Zero-liquid discharge technology benefits the plant, the community and all the area water users.”

Additional POET facilites use innovative ways to cut water use including: Corning, Iowa; Portland, Indiana; and Big Stone, S.D. POET plants on average use 3 gallons of water per gallon of ethanol.

Ethanol, News, POET

Dallas Landfill to Provide Green Gas

John Davis

cleanenergyA landfill in Dallas, Texas will soon be the source of renewable biomethane that will be burned to create electricity.

This story posted on the Environmental Protection Web site says that Clean Energy Fuels Corp. has inked a 15-year deal through its subsidiary, Dallas Clean Energy, to sell the biomethane produced at the McCommas Bluff landfill:

Beginning this month, the biomethane will be sold at fixed prices that increase in 2010 and 2011 and then remain fixed over the remainder of the agreement. The price for the “green” gas was not disclosed but represents a significant premium to the prevailing price for conventional natural gas.

The agreement calls for the sale of up to 4,500 MMBtus per day of biomethane from April 2009 through September 2010 and between 5,000–6,000 MMBtus per day of biomethane through March 2024. The actual volumes sold will depend on the gas recovery rates from the landfill and successful expansion of the gas processing facilities.

Shell Energy North America will act as the purchaser and supply the biomethane to the end-user—a utility that will use the biomethane in power generation to help meet applicable Renewable Portfolio Standards. Atmos Energy Corporation will provide intrastate transportation services from the gas processing plant.

littlefair“This gas sale agreement validates selling renewable biomethane as a valuable, low-carbon fuel. It provides Clean Energy with a sound, long-term revenue stream and also supports expansion of the plant’s production capacity for additional gas sales, including potential use as vehicle fuel,” said Andrew J. Littlefair, Clean Energy president and chief executive officer “Many of our largest customers are showing interest in biomethane for their fleet vehicles as it is one of the best alternative fuels to meet new Low Carbon Fuel Standards coming in California and other states.”

The McCommas Bluff landfill gas operation is among the biggest landfill gas operations in the country. Officials estimate it will continue to produce quality methane gas for 30 years after its closing in the year 2042.

Miscellaneous

Oh Takes Reins of Biodiesel Leader REG

John Davis

reglogo2The nation’s leader in biodiesel making and making biodiesel plants has a new leader of its own.

Biodiesel Magazine reports that Renewable Energy Group’s Daniel J. Oh, Chief Operating Officer, is taking over as President of the Iowa-based company:

danielohMr. Oh takes the reins from Nile Ramsbottom, who has served as Renewable Energy Group’s president since the company’s incorporation in 2006. Mr. Ramsbottom’s leadership helped launch REG as a premier producer and marketer of high quality biodiesel. In the nine years Mr. Ramsbottom has served at REG and its predecessor West Central Cooperative, the company’s biodiesel business has grown from a 1 million gallon-per-year batch plant to a network with the more than 300 million gallons of annual production capacity. Mr. Ramsbottom has agreed to forgo full retirement to help strengthen REG’s global presence. The new global sales position will be based in St. Louis.

Of the transition Renewable Energy Group Chairman and CEO Jeffrey Stroburg said: “Our board of directors appreciates Mr. Ramsbottom’s willingness to continue in this new and critical role as he shifts from his position as REG’s president and prepares for a personal and professional transition after his 65th birthday in May. In this new position, Mr. Ramsbottom will continue pursuing relationships and business with national and international biodiesel customers and large feedstock producers.”

Jeffrey Stroburg stays on as REG’s Chairman of the Board and Chief Executive Officer, with Jeff Pattison remaining as Chief Financial Officer.

Biodiesel

FEW Seeking Nominations for Industry Awards

Joanna Schroeder

fuel-ethanol-workshop-sublogoThe 25th anniversary of the Fuel Ethanol Workshop (FEW) is fast approaching – June 15-18, 2009 in Denver, Colorado. Two awards will be presented this year to outstanding industry professionals: The High Octane Award and the Award of Excellence.

The High Octane Award is chosen by the industry and honors a person who has helped the ethanol industry mature and progress over the years. In general, the award is presented to an individual who has made a big impact on the ethanol industry. BBI will then announce the nominees and the industry will vote to determine the winner.

People can also submit nominees for The Award of Excellence. A qualified nominee is an individual who has published papers and/or made significant research, technical advisory and development contributions in the ethanol industry. The award winner will ultimately be chosen by committee, led by Dr. Kevin Hicks.

Deadlines for submitting nominations is May 1, 2009, and awards will be presented during the general session. For more information visit www.fuelethanolworkshop.com.

conferences, Distillers Grains, Ethanol