Encore Energy Buying Up More Biofuels Plants

John Davis

encoreenergyEarlier this year, I told you how Encore Energy was targeting troubled biodiesel plants… ones producing below their capacity… for acquisition (see my post from March 16, 2009). This company press release says that Encore is now making that happen in five biofuels facilities with its new business development partner, Hardin Fuels:

Four production facilities are located in Mississippi with one facility located in Texas.

An announcement will be released as each facility is acquired and begins production.

Fuel distribution and feedstock allocations have been located for these projects and will be further announced as shipping commences.

In anticipation of explosive demand, the Company continues targeting distressed biodiesel asset purchases and bio-fuel production and distribution agreements.

We’ll need to keep an eye on this to see if this is a trend that takes out the small operators that help keep the biodiesel industry diverse… or if its a way to keep the overall green industry in the black.

Biodiesel

Bacon Fat Biodiesel Station Opens in WI

John Davis

bio-blend-fuelsA green fuel that also gives you the intoxicating aroma of bacon as you drive? It’s as if half of Homer Simpson’s brain had been implanted into Al Gore! A small, startup company in Manitowoc, Wisconsin has opened its first biodiesel station with the feedstock being the pork fat left over from making pre-cooked bacon.

This story from the Manitowoc Herald Times Reporter says husband and wife Dan and Tracy Kaderabek have opened their Bio-Blend Fuels filling station in the city on the western shore of Lake Michigan:

“The pork gets run through microwaves to make precooked bacon, the grease falls off and that’s what we use,” Dan said. “Americans’ bad eating habits ensure our supply.”

While the Kaderabeks view producing biodiesel as an environmentally friendly “green” industry, their business model for success doesn’t depend on what direction political winds are blowing.

“We’re not relying on government handouts or rebates or tax credits,” said Tracy. “Those would be a bonus, but you can’t rely on those in running your business.”

Success will be based, they said, on having low overhead and selling the biodiesel cheaper than regular petroleum diesel.

On Monday, Kirt filled his tank with a 50-50 blend of biodiesel and regular diesel for $2.09 a gallon, compared to about $2.20 for 100 percent fossil fuel, “dino diesel.”

The Kaderabeks’ blend of 20 percent biodiesel-80 percent regular diesel sold for $2.17 Monday while “B99” (almost all fuel from the pig fat) was $1.99.

There are ideas to one day change to algae as a feedstock.

While this is certainly no where close to some of the big operations… or even some of the medium-sized operations… it’s nice to see a couple of regular Joes (or in this case, a couple of regular Kaderbeks) making it with their own version of a green vision. And as a plus, it involves BACON! Brings a tear to my eye just thinking about it (or is that drool from my mouth?).

Biodiesel, Energy

Petition Shows Support for Increasing Ethanol Blend

Cindy Zimmerman

ACEAn on-line petition drive sponsored by the American Coalition for Ethanol (ACE) has gathered more than 5,000 signatures in the past month from people in all 50 states who are in favor of the government increasing the amount of ethanol allowed per gallon of gasoline to 15 percent.

“People want more ethanol, and the number of names signed to this petition in just a month’s time demonstrates widespread grassroots support for ethanol,” said Brian Jennings, Executive Vice President of ACE. “It’s significant that the people who have signed the E15 petition come from all 50 states, because this shows that ethanol is not just a Midwestern issue. People all across the country recognize that big oil’s monopoly at the pump must be broken and that more ethanol represents meaningful consumer choice.”

The online petition can still be signed through May 21, which is the end of the EPA public comment period. The petition and all of the names, listed by state, can be viewed and signed at www.ethanol.org/petition.

ACE, blends, Ethanol

More Corn for Ethanol and Exports

Cindy Zimmerman

The U.S. Department of Agriculture is expecting more corn to be made into ethanol and exported overseas this year, but less to be fed to livestock.

USDAAccording to the May World Agricultural Supply and Demand Estimates released on Tuesday morning, total U.S. corn use for 2009/10 is projected to be three percent higher than the current year with higher expected food, seed, and industrial (FSI) use and exports more than offsetting a decline in projected feed and residual use.

Total usage in the FSI category use is projected seven percent higher with a 350-million-bushel rise in ethanol corn use accounting for most of the increase. The 4.1 billion bushel estimate for ethanol reflects the increase in the Renewable Fuels Standard, as well as improved blending incentives as higher gasoline prices increase demand for ethanol.

At the same time, exports are projected to increase by nine percent “as world corn trade and feeding are expected to recover
modestly in 2009/10, partly reflecting a reduction in global supplies of low-cost feed quality wheat.”

USDA is also forecasting that the amount of corn used to feed livestock will be down two percent this year due to reduced animal numbers and the increased availability of the ethanol by-product distiller’s grains used for animal feed.

corn, Ethanol, USDA

Bill Elliot to Attempt NASCAR Record with E85

e85_mustangTomorrow, Brent Hajek Motorsports will put Bill Elliott behind the wheel of an E85 powered Mustang FR500C Cobra Jet at Talladega Superspeedway in an attempt to break the NASCAR speed record. the current NASCAR top speed record sits at 212.089 mph and was set by Elliott in 1987 at the same track by a Ford Thunderbird.

The Mustang Cobra Jet that will be used to defeat the 22 year old record has already reached 252 mph at the Bonneville Salt Flats in Utah under direction of Brent Hajek Motorsports.

bill_elliottRacing legend Bill Elliott has built one of the most distinguished records in NASCAR Cup history. Since 1976, Elliott has participated in close to 750 races, achieved 44 wins, collected 55 career poles and amassed winnings of some $73 million. With all of his incredible success, he still remains humble, stating, “We are all motivated by certain things. Of course, winning is one of them, but for me, the fans have always been the biggest motivational factor. I’ve said this over and over-our fans are the backbone of this sport and they are the reason we are able to do what we do.”

E85

Corn Ethanol Done Right

Cindy Zimmerman

Corn growers and ethanol producers have joined forces for a new ad campaign stressing how corn-based ethanol gets biofuels right. The campaign includes a full-page ad running in Politico, a Capitol Hill newspaper.

The print ad stresses important facts about corn and ethanol, such as the increase in yields over the last 20 years, the decrease in the amount of energy used to produce corn and the resulting greenhouse gas emissions, and that using ethanol helps cut GHG by up to 59 percent.

Collaborating with the National Corn Growers Association on the advertisement are Growth Energy, the Renewable Fuels Association, the American Coalition for Ethanol, and the Biotechnology Industry Organization.

See the ad here.

ACE, BIO, corn, Ethanol, Growth Energy, RFA

Soybean Growers Fight Back on EPA Rules

John Davis

asa_logo1As I posted before, the debate over the Environmental Protection Agency’s proposed rules for the expanded Renewable Fuel Standard (RFS-2) continues to rankle the folks who grow the biggest feedstock for biodiesel: soybeans.

The crux of the problem is that the under the new rules, biodiesel made from soybeans has been deemed to reduce greenhouse gas emissions by only 22 percent… while it must reduce those emissions by 50 percent if it wants to count toward the RFS 1-billion-gallon goal by 2012. And soybean biodiesel makers are worried their green fuel will be left out in the cold… a bitter pill for many of tm to swallow considering how they’ve been in on the ground floor of greenhouse gas reduction for some time.

According to Southeast Farm Press, the American Soybean Association (ASA) has made their displeasure known in comments to the House Agriculture Subcommittee on Conservation, Credit, Energy and Research:

ASA sees numerous potential flaws in the approach EPA is using for indirect land use changes in its proposed rule. Further, there are numerous factors that ASA believes refute the possibility that significant international indirect land use change would result from the relatively small increase in U.S. biodiesel production called for under the RFS-2.

“The approach EPA has used in its proposed rule on RFS-2 implementation is significantly flawed and would do unnecessary and irreversible harm to the competitive position of the U.S. soy biodiesel industry,” said ASA President Johnny Dodson, a soybean producer from Halls, Tenn. “EPA’s projections of indirect international land use changes resulting from a quite small increase in biodiesel production are built on faulty assumptions, flawed analysis and misplaced penalties.”

ASA included a detailed list of the flaws in EPA’s assumptions in its comments to the Subcommittee. These comments are available here.

When calculating the life cycle GHG impact of biofuels, the statute directs EPA to consider direct and indirect emissions, including indirect land use, of all stages of the fuel and feedstock production. The primary area of concern and disagreement has emerged over the international indirect land use assumptions that EPA has proposed to use in conducting their updated life cycle GHG analysis.

The article goes on to point out how land use change has been going on long before biodiesel was even as part of the picture. And it says the way the EPA is extrapolating land use change for the future based on 2001-2004 cropland conversions is “illogical.”

Biodiesel, Government

Verenium Reports First Quarter Financials

Joanna Schroeder

Commission of Verenium's first cellulosic ethanol demonstration facility in Jennings, LA

Commission of Verenium's first cellulosic ethanol demonstration facility in Jennings, LA

Verenium Corporation today announced its first quarter earnings for 2009 reporting total revenues for the quarter ending March 31, 2009 at $14.4 million. Earnings are slightly down from first quarter 2008 when the Company reported $15.2 million in total revenues. 

According to a company news release, President and Chief Executive Officer, Carlos A. Riva, commented on the company’s financials by saying, “We had a strong start to 2009, beginning with the announcement of our 50/50 joint venture with BP for developing commercial cellulosic ethanol facilities. This critical partnership firmly positions us, along with BP, to be a first mover in the field of next-generation ethanol. As we look toward commercial operations, we continue to be very encouraged by the political climate and support for alternative energy and, specifically, biofuels.

Verenium has had several big announcements in the past few months including the consolidation of the company’s R&D headquarters to Jennings, LA; announced the second phase of the BP partnership to develop cellulosic ethanol from non-food feedstocks, and announced Highlands County, Florida as the location for their first commercial cellulosic ethanol facility. In addition, launched a new enzyme for the food and beverage industry called Veretase.  Visit www.verenium.com for more information about the Company’s financial report.

Cellulosic, Company Announcement

Biofuels Part of World Ag Forum in St. Louis

John Davis

worldagforumJust got word today that I’m headed to St. Louis next week to help cover the World Agricultural Forum’s Sixth Biennial World Congress, “Our Global Priority: Food Security—Financial, Trade and Technical Services,” for ZimmComm New Media, mostly on our sister Web site, AgWired.com.

For Domestic Fuel followers, there is plenty going on at the forum, especially in the sustainability field:

The 2009 World Congress will seek solutions to issues around agricultural production and supply, rising food costs, the crucial resource of water, and the impacts on agricultural economies and resources during a period of unprecedented financial uncertainties on a global scale. Defining strategies and creating solutions will require a better understanding of the drivers and challenges of agriculture and food production including labour, rising prices, shrinking sources of credit, leveraging of innovation and technology, creation of incentives for production and higher productivity, and reducing the impact of input costs to farmers. Each sector — government, private and private-public partnerships and civil society (NGOs) will be challenged to provide a road map to success by addressing the crucial issues of safe, affordable and reliable supplies of food, fuel, fiber and water.

If you’re in the St. Louis area on Tuesday, May 19th, check out the session entitled Food Security: An Integrated Approach to Biofuels. The session will be moderated by Henk Joos, Plant Science and Agronomy Director, D1 Oils and feature panelists Smt. Radha Singh, Former Secretary, Department of Agriculture, from India; Lee Broughton, Director, Corporate Sustainability, Enterprise; Ernie Shea, Project Coordinator, 25 X ’25; and Prof. Nuhu Hatibu, CEO, Kilimo Trust, East Africa.

Should be a pretty interesting conversation. Both Cindy and I will be providing coverage for the event, May 17-20. We’ll either see you there at the St. Louis Ballpark Hilton Hotel in downtown St. Louis or over on AgWired.com!

Biodiesel, Ethanol, International, News

Proven Energy Becomes Small Turbine Wind Leader

Joanna Schroeder

The American Wind Energy Association (AWEA) has recognized Proven Energy, based in the west of Scotland (U.K.), as one of the world’s largest manufacturers of small wind turbines. A small wind turbine is defined as those with capacities of 100 kW and under. Proven Energy sold more than 5,800 kilowatts of wind energy worldwide in 2008, making them one of the most successful wind turbine manufacturers globally.

mainimage001According to AWEA’s recent small wind turbine global market study, at least 219 companies manufacture or will manufacture small wind turbines in the world. The small wind turbine market grew 78 percent in 2008 with the installation of 17,300kW of capacity. 

The company manufactures 2.5kW, 6kW and 15kW sized wind turbines for use in homes, businesses, schools, and municipalities. Replacing traditional forms of electricity generation (coal, natural gas) with a wind turbine can nearly reduce or eliminate electrical bills. The wind turbines can also provide electricity for remote applications including telecommunications sites operating in isolation of existing power. 

It’s anticipated that the small wind turbine market will continue to grow as recent federal legislation offers American taxpayers a 30 percent tax credit for installing renewable energy including wind or solar. Other tax incentives are available through the Rural Energy for America Program. 

Company Announcement, Wind