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Ethanol Report on California ARB Decision

Cindy Zimmerman

Ethanol Report PodcastCalifornia has adopted the first-ever fuel requirement that is carbon-based – and that’s a good thing. “What is frustrating to the ethanol industry is that the board still went ahead and approved a program that has some really ridiculous land use data,” says Renewable Fuels Association president and CEO Bob Dinneen.

Despite the Board’s vote, Dinneen says RFA remains cautiously optimistic that its decision to form an expert work group will provide an opportunity to get the standard right. In this edition of “The Ethanol Report,” Dinneen talks about the decision, what it could mean for ethanol, and what the industry is doing about it.

You can listen to “The Ethanol Report” on-line here:
[audio:http://www.zimmcomm.biz/rfa/ethanol-report-31.mp3]

Download audio for broadcast use here: Ethanol Report on California ARB Decision

Or you can subscribe to this podcast by following this link.

Audio, Environment, Ethanol, Ethanol News, Ethanol Report, News, RFA

California Motorists Fill Up With Cellulosic Ethanol

Joanna Schroeder

graphic2In what might be one of the first deals of its kind, Pearson Fuels, a company installing “alternative fuels stations” across the state of California, has inked a deal with AE Biofuels, Inc. to supply cellulosic ethanol for its E85 and other ethanol fuel blends. Pearson Fuels, based in San Diego was the first company to build an E85 station for the public in California six years ago and has since begun expanding north.

aeb_logo_topAE Biofuels, based in Cupertino, California just launched a 9,000 square foot demonstration facility in Butte, Montana that will be producing cellulosic ethanol from various feedstocks. To date, they are utilizing various grasses, wheat straw, corn stover, corn cobs, and bagasse. The company is working with Verenium to develop the enzymes.

Mike Lewis, the owner of Pearson Fuels was quoted in the Union Tribune as saying his would be the first stations selling ethanol not made from food plants. “The reality is that there’s none out there on the market,” he said. “Bringing in any is big news.”

The financial terms of the agreement were not disclosed; however, AE Biofuels will supply Pearson Fuels with other biofuels, along with cellulosic ethanol, for distribution. AE Biofuels has several corn ethanol production facilities as well as biodiesel facilities. This partnership came at a strategic time as the California Air Resources Board (CARB) voted 9-1 to pass the low carbon fuel standard yesterday requiring a significant reduction of carbon emissions from fuels over the next decade.

Biodiesel, Cellulosic, E85, Ethanol, Miscellaneous

Ethanol Groups Disappointed by California Ruling

Cindy Zimmerman

Ethanol interests are expressing their disappointment in this week’s ruling by the California Air Resources Board (ARB) to adopt a low carbon fuel standard that uses controversial methods to determine indirect land use changes attributable to biofuels.

RFA“Adopting this standard sets a dangerous precedent about the application of unproven science to industries across the country,” said Bob Dinneen, President and CEO of the Renewable Fuels Association. “This standard is based on flawed analysis and selectively enforced penalties against biofuels only. In unfairly penalizing ethanol, ARB is relegating California to more petroleum use as biofuels are the only viable alternative liquid fuel.”

Growth EnergyGeneral Wesley Clark, co-chairman of Growth Energy agrees. “This was a poor decision, based on shaky science, not only for California, but for the nation. It is unfair to selectively single out the indirect effects of one fuel pathway while ignoring the significant indirect effects of all other fuels, including petroleum. (This) decision puts another road block in moving away from dependence on fossil fuels and stifles development of the emerging cellulosic industry.”

In issuing the decision, RFA notes that the Board also voted to form an expert work group which may still provide an opportunity to improve the standard. “Forming such a group is a clear signal that several important questions regarding the science and methodology used to develop and implement this standard remain unanswered,” said Dinneen.

Energy, Environment, Ethanol, Growth Energy, RFA

California Adopts Standard Biased Against Ethanol

Cindy Zimmerman

Despite stringent arguments by the ethanol industry, California’s Air Resources Board (ARB) yesterday approved a Low Carbon Fuel Standard that could jeopardize continued development of the advanced biofuels it is intended to promote.

CA ARBAccording to a press release from the board, “The new standard means we can begin to break our century-old dependence on petroleum and provide California with greater energy security” said ARB Chairman Mary D. Nichols. “The drive to force the market toward greater use of alternative fuels will be a boon to the state’s economy and public health – it reduces air pollution, creates new jobs and continues California’s leadership in the fight against global warming.”

According to ARB analyses, to produce the more than 1.5 billion gallons of biofuels needed, over 25 new biofuel facilities will have to be built and will create more than 3,000 new jobs, mostly in the state’s rural areas. Production of fuels within the state will also keep consumer dollars local by reducing the need to make fuel purchases from beyond its borders.

However, the biofuels industry believes the indirect land use modeling in the standard will do just the opposite. Biotechnology Industry Organization (BIO) Executive Vice President Brent Erickson said, “Unfortunately, the rule adopted today – in particular the inclusion of indirect land use change measurements and methodology – may discourage investment in continued research and development of the same low carbon biofuels that are needed by California to meet its goals.”

California does intend to provide resources for research and development by providing “approximately $120 million dollars per year over seven years to deploy the cleanest fuels and vehicles.” Regulators expect the new generation of fuels to come from the development of technology that uses algae, wood, agricultural waste such as straw, common invasive weeds such as switchgrass, and even from municipal solid waste.

Environment, Ethanol, News

Turning CO2 Into Ethanol

John Davis

A new process could be a way to reduce greenhouse gas… and turn that gas into fuel for your car.

This story from Reuters says scientists at the Institute of Bioengineering and Nanotechnology in Singapore are using non-toxic organocatalysts to make carbon dioxide into ethanol:

yugenzhangIn a statement, the institute said the team, led by Yugen Zhang, used N-heterocyclic carbenes (NHCs), an organocatalyst in the chemical reaction with carbon dioxide. NHCs are stable and the reaction between NHCs and carbon dioxide can take place under mild conditions in dry air, the statement said, adding only a small amount of the catalyst was needed.

The process also used hydrosilane, a combination of silica and hydrogen. “Hydrosilane provides hydrogen, which bonds with carbon dioxide in a reduction reaction. This carbon dioxide reduction is efficiently catalyzed by NHCs even at room temperature,” Zhang said in the statement.

“Methanol can be easily obtained from the product of the carbon dioxide reaction,” Zhang added.

The team says this process is much more efficient than previous attempts to make CO2 into a more useful product.

Ethanol, News

Plantation Pipeline Expanding to Ethanol

John Davis

kindermorganA pipeline in the Southeastern United States that has already tested moving biodiesel (see my Feb. , 2009 post) is now looking at sending ethanol through that same conduit.

This Reuters story says Kinder Morgan Energy Partners is looking at shipping ethanol on the Louisiana to Virginia Plantation duct:

“We are evaluating the Plantation pipeline … as the next possible pipeline system that can handle ethanol,” Jim Lelio, a renewable fuels business development director at the company, told the Alternative Fuels & Vehicles conference in Orlando on Tuesday.

Late last year, Kinder said it had started sending batches of the biofuel through a 105-mile (170-km) petroleum products pipeline in Florida on demand from customers seeking to cut the costs of transportation of the fuel via rail and trucks.

Lelio said there were a number of challenges in sending ethanol on product lines and the challenges are bigger for a much bigger line like Plantation. Petroleum products can travel about 10 times as far on Plantation than on the Florida duct.

Th article goes on to say that there are concerns that the ethanol will absorb excess oxygen, causing stress corrosion cracking. But officials with the Association of Oil Pipelines say there are ways to control the problem. And that is good news for other companies, such as Magellan Midstream Partners (MMP.N) and Poet, the largest U.S. ethanol producer, expressing interest in moving ethanol through pipelines.

Ethanol, News

Sun to Power Wal-Mart Facilities in California

John Davis

walmartsolar1That familiar Wal-Mart smiley face might be glowing like the sun as the company has upped its commitment to sustainability efforts by adding solar panels to 10 to 20 Wal-Mart facilities in California.

This company press release says these panels will be in addition to the 18 solar arrays currently installed at Wal-Mart facilities in California, bringing the retailer’s total solar commitment to:

• Generate up to 32 million kilowatt hours (kWh) of renewable energy per year – the equivalent of powering more than 2,600 homes*;

• Avoid producing more than 22,500 metric tons of carbon dioxide emissions per year – the equivalent of taking more than 4,000 cars off the road*;

• Provide 20 to 30 percent of each location’s total electric energy needs.

“Increasing the use of solar energy is the right thing to do for the environment and makes tremendous business sense, especially in these economic conditions,” said Kimberly Sentovich, Wal-Mart’s California regional general manager. “Thanks to Governor Schwarzenegger’s leadership, California is an excellent environment for us to grow our investment in renewable energy and help create more green jobs for America. Wal-Mart is excited to continue collaborating with our partner BP Solar on expanding our solar footprint.”

“All over the state we are harnessing the power of the famous California sun and creating energy that is pollution free,” said Governor Schwarzenegger. “This project is all about taking bold action so we can see solar panels on commercial rooftops all across California while putting people to work. Today’s action helps prove that even in an economic downturn, it is possible to get serious about clean, renewable energy.”

The move nearly doubles the company’s solar use in California.

Solar

GHG Worse than Thought from Foreign Crude

A press release by Growth Energy highlights a new study that shows greenhouse gas emissions of gasoline from foreign oil are at least twice what was previously thought when the indirect greenhouse gas (GHG) emissions related to military operations in the Middle East are taken into account. The study is published in “Biofuels, Bioproducts & Biorefining”.

The study comes as indirect GHG emissions has been made a major issue by the California Air Resources Board (ARB) as it prepares to approve regulations for its Low Carbon Fuel Standard. In a CARB staff report submitted to the board for adoption, biofuels are the only fuel that has indirect effects included in their carbon accounting. Despite this new study, no indirect effects are included for petroleum-based fuels. Critics of California’s regulations have argued that applying an indirect penalty to biofuels is unfair as it sets different standards for determining a fuel’s carbon intensity. California currently imports more than 45 percent of its oil from foreign sources.

“This research is the latest example of significant indirect sources of greenhouse gas emissions that the ARB has either overlooked or ignored. It is incomprehensible that ARB staff would suggest penalizing biofuels for indirect effects, when it is clear gasoline – ethanol’s primary competitor – has a whole host of indirect effects that have not been accounted for,” said Tom Buis, CEO of Growth Energy. “In light of this important research, ARB has to delay the adoption of an indirect penalty for biofuels until the indirect effects of all other fuel pathways have been determined so that the Low Carbon Fuel Standard is fair and equitable.”

To view the entire study, click here.

Energy, Environment, Ethanol, global warming, Growth Energy

Ethanol Watching CARB Arguments

Cindy Zimmerman

All eyes in the ethanol industry are on California today as the state’s Air Resources Board (ARB) is hearing arguments and preparing to vote on a controversial staff proposal for the state’s low carbon fuel standard (LCFS).

Hundreds of scientists, biofuel producers, including both current and next generation companies, and petroleum interests have all cautioned that ARB’s approach is far outpacing the available science to support their recommendations.

CA ARBThere is a glimmer of hope that all the input being provided is being heard by officials making the decision, according to a letter received this week by Growth Energy from board chairperson Mary Nichols.

Regarding concerns that the proposed LCFS is biased against corn ethanol, Nichols wrote that the ARB “firmly believes that corn ethanol will play an important role in helping California achieve the goals of the LCFS.” The letter also stated:

The LCFS supports the market for corn ethanol in California over the next decade at least. In the next few years, based on representations from the renewable fuels industry and others, we expect the market to shift to lower carbon biofuels produced from new materials using advanced production technologies. I also wanted to make you aware that I am asking the Board to take the following three additional steps to ensure that low-carbon biofuels, including low-carbon corn ethanol can continue to contribute to California’s economy, and in helping fuel suppliers reach the standard.

The board is expected to issue a ruling on Friday after hearing arguments.

corn, Environment, Ethanol, Growth Energy

Ethanol Blending in Nebraska

Cindy Zimmerman

nebraska blender pumpMotorists in Grand Island, Nebraska now have a range of choices at the pump when it comes to ethanol blended gasoline.

Six ethanol blender pumps were unveiled last week providing flexible-fuel vehicle owners with the option of using E85, E30, E20 or the traditional E10 blend of gasoline. “If you drive a flex-fuel vehicle, you don’t have to fill up with E85 all the time,” said Jon Holzfaster, chairman of the Nebraska Corn Board. “You can choose your ethanol blend based on price, performance and availability. That’s why they’re called ‘flexible.’”

A computer sensor automatically compensates for varying levels of ethanol in the gasoline. The pumps were installed at the Bosselman’s station on Allen Drive in Grand Island. Bosselman’s plans to install more blender pumps in the state, with the next planned for stores at Ainsworth and Chappell.

blends, corn, E85, Ethanol, Flex Fuel Vehicles