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

Obama at Iowa Wind Turbine Plant for Earth Day

John Davis

obamawindiowaPresident Barack Obama was in Iowa for this Earth Day, visiting a former appliance maker that has converted to make parts for the state’s burgeoning wind energy industry.

The Des Moines (IA) Register reports that the president also used the stop at the Trinity Structural Towers in Newton, formerly a Maytag appliance factory, to unveil plans to allow off-shore wind-energy production:

“On this Earth Day, it is time for us to lay a new foundation for economic growth by beginning a new era of energy exploration in America,” Obama said during a stop at a plant that produces towers for wind-electric turbines.

Making his first trip to Iowa as president, Obama urged Congress to pass a bill this year that puts the nation on a path to reducing its carbon pollution by 80 percent by 2050.

Obama has proposed establishing a cap-and-trade system, where businesses would be granted a fixed number of credits for their emissions. Companies that use more than their share would pay more.

The plan includes reducing the number of credits over time.

It also includes spending $15 billion a year for 10 years to develop sectors of the renewable energy industry through research and development, job training and infrastructure.

The House Energy and Commerce Committee began discussing an energy bill Tuesday and is expected to vote on legislation next month.

“Today I am announcing that my administration is taking another historic step. Through the Department of Interior, we are establishing a program to authorize ­ for the first time ­ the leasing of federal waters for projects to generate electricity from wind as well as from ocean currents and other renewable sources,” Obama said to about 200 in at Trinity Structural Towers in Newton.

“It’s a win-win. It’s good for the environment. It’s great for the economy,” he said.

The move is seen as a boon to the Iowa plant that currently employs 90 full-time workers with another 40 to be added this coming fall… and maybe more, depending on how successful this initiative is.

Iowa is second in the nation in wind energy production behind only Texas.

Government, Wind

Biodiesel Fueling Growth in Industrial Oils & Fats

John Davis

usda-logoThe amount of industrial fats and oils in the U.S. has grown by nearly one-fourth over the past couple of years, fueled mostly by the growth in popularity of biodiesel.

This story in ICIS Chemical Business
says the US Department of Agriculture’s (USDA) Economic Research Service (ERS) reports fats and oils used for industrial applications in the U.S. rose last year to an estimated 11.9 billion lbs, up by 9% from 2007, and by 24% from 2006:

Methyl esters, or biodiesel, was the biggest factor in the increase in fats and oils use, while applications in lubricants and similar oils also had significant spikes, the USDA reported in its 2009 Oil Crops Yearbook.

An estimated 700m gallons of US biodiesel was produced last year, according to the National Biodiesel Board (NBB). Around 34% of biodiesel raw material came from refined soybean oil, 31% from crude soybean oil, 11% from inedible tallow and grease, and 24% from other fats and oils.

“The production of US biodiesel, which now accounts for over 75% of soybean oil’s industrial use, experienced an annual average growth rate of an astonishing 90% for most of this decade,” says Kenneth Doll, research chemist, Food and Industrial Oil Research Unit at the USDA’s Agriculture Research Service (ARS).

The article goes on to say the American numbers match the worldwide trend in industrial oils use.

Biodiesel, USDA

Eco-Sustainable City Plants Eco-Sustainable Feedstock

John Davis

destinyAmerica’s first eco-sustainable city is taking its first steps toward sustainable energy.

Destiny, Florida, as you might remember from my February 27, 2009 Domestic Fuel podcast, is a 41,000-acre community founded in 2005 in South Central Florida. Among the city’s eco-friendly features is The Sustainable Energy Farm that produces power from biodiesel, ethanol, solar and wind sources for companies that contribute to sustainable industries, such as building solar panels. Officials hope that one day, the city will have 16,000 green tech jobs. That energy park recently got a green boost when some sustainable feedstock sources… including jatropha, camelina, and new hybrids of sweet sorghum… were planted for study of the next generation of renewable and alternative fuel sources. This press release has details:

Several varieties of sweet sorghum were donated by Global Renewable Energy, and planted by Everglades Farm Equipment with the self-steering, precision guidance Autotrac system, which enables crops to be planted more efficiently, waste less seed, and fertilize more accurately. A new drip fertigation system, designed to reduce water waste, will be overseen by Treasure Coast Irrigation. The camelina, a new potential candidate in the biofuel market, and jatropha were planted by Bio Greens Oils USA.

The Sustainable Energy Farm is also planning to grow arundo donax this spring for testing; arundo donax is a perennial grass, with potential yields of 30 to 35 tons of biomass per acre.

To determine the validity of these crops as future fuels, scientists at the University of Florida will research yields per acre, water and fertilizer consumption, different harvesting techniques, and suitability to the Central Florida climate.

Officials say that Destiny is in the “sweet spot” for biomass production with long-growing seasons and large tracks of land for fields of these new feedstocks. We’ll keep tracking the success of the city and let you know how things go.

Biodiesel, biomass, Ethanol, Miscellaneous, News, Solar, Wind