Biofuels Industries Form Global Renewable Fuels Alliance

Joanna Schroeder

global-renewable-fuelsalliance1

From left to right, Bliss Baker, Executive Director, Global Renewable Fuels Alliance; Gordon Quaiattini, President, Canadian Renewable Fuels Association; Robert Veirhout, Secretary General, European Bioethanol Industry Organization; Bob Dinneen, President and CEO, Renewable Fuels Association

The Renewable Fuels Association, the Canadian Renewable Fuels Association and the European Bioethanol Industry Organization have joined together to form the Global Renewable FuelsAlliance. Their first initiative is to reach out to the World Bank, along with other organizations, to encourage them to make investments in developing countries’ biofuels infrastructure a top priority.

While Brazil is not yet a part of this organization, Bliss Baker, Executive Director, of the Global Renewable FuelsAlliance, said that they have spoken and invited them, along with dozens of other worldwide organizations, to join the alliance. Bob Dinneen, President and CEO of the Renewable Fuels Association followed up by saying, “Quite frankly, we expect them to join.”

The announcement of this global alliance comes on the heals of President Obama’s commitment to continued biofuels development in the States and the cooling of the “food versus fuel debate” which was proven to be a hoax this summer as commodity prices plummeted and food prices skyrocketed. There was a consensus among the group that the time was right to begin working together to help build the global energy infrastructure.

Gordon Guaiattini, President of the Canadian Renewable Fuels Association, stressed the importance of helping developing countries develop their agricultural productivity. “Agriculture productivity and poverty are directly linked.” He wants this new organization to take a similar approach that leading agricultural groups have, who have for years, helped developing countries adopt more sustainable practices while increasing output. He said that they will ensure that biofuels are developed in a sustainable manner that will allow poverty stricken areas to significantly increase their economic condition. 

As energy is a global issue, this new alliance, which represents 60 percent of the global biofuels production and 29 countries, will focus on ensuring that international biofuels policies are sustainable, and developed in a way that each countries’ best interest as the center of all decisions. To learn more, visit the Global Renewable FuelsAlliance’s website at www.globalrfa.org. 

Click here to listen to the full press conference: [audio:http://www.ethanolrfa.org/ethanolreport/audio/nec-09-grfa-conference.mp3]

Ethanol, International

Tom Buis is New Growth Energy CEO

Chuck Zimmerman

Growth EnergyGrowth Energy will be holding a press conference this morning.

Growth Energy Co-Chairman General Wesley Clark will announce two new members of the leadership team at Growth Energy on Wednesday, February 25, 2009 at 10:30 a.m. EST. Clark will name a CEO and a Senior Advisor, both known for their leadership and service, who will help Growth Energy achieve its goals of creating American jobs at home, reducing greenhouse gas emissions, and decreasing our dependence on foreign oil through the expanded use of ethanol in our gasoline supply.

Several sources here at the National Ethanol Conference have told us that Tom Buis, President, National Farmers Union, will be announced as the new CEO for Growth Energy. I’ll be on the conference call to confirm this later this morning.

Post Update: This is confirmed now and I’ve recorded this morning’s press conference call that includes remarks from Wesley Clark, Tom Buis and Jim Nussle. You can listen to the press conference here: Growth Energy press conference

Ethanol, Growth Energy

Obama Calls for $15 Billion for Alternative Energy Development

John Davis

obamaportraitJust moments ago, Pres. Barack Obama, in his first State of the Union Address, laid out his plan he believes will lead to the recovery of the U.S. economy. And alternative energy could wind up being a big winner as part of the plan.

Obama said that while “we have known for decades that our survival depends on finding new sources of energy,” we’re continuing to import more foreign oil than ever before. Part of the solution to that ever-growing dependence on foreign oil are alternatives, such as biodiesel, ethanol, solar and wind energy, as well as hybrid vehicles. Obama wants $15 billion to invest in those green energy sources From his speech posted on the White House Web site:

“We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy efficient. We invented solar technology, but we’ve fallen behind countries like Germany and Japan in producing it. New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea.

Well I do not accept a future where the jobs and industries of tomorrow take root beyond our borders – and I know you don’t either. It is time for America to lead again.

Thanks to our recovery plan, we will double this nation’s supply of renewable energy in the next three years. We have also made the largest investment in basic research funding in American history – an investment that will spur not only new discoveries in energy, but breakthroughs in medicine, science, and technology.

We will soon lay down thousands of miles of power lines that can carry new energy to cities and towns across this country. And we will put Americans to work making our homes and buildings more efficient so that we can save billions of dollars on our energy bills.

But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America. And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America.

Obama also pointed to Greensburg, Kansas as an example of how the entire country can rebuild in a green energy way. Maybe, then, our economy can as well.

Biodiesel, Ethanol, Government, News, Solar, Wind

UNI Professor Calls for Diversity in Alternative Energy

John Davis

We should not put all of our energy eggs in one basket… that’s the view of a professor from the University of Northern Iowa, who also dismisses some of the food-versus-fuel myths in this fascinating guest column in the Des Moines (IA) Register.

honaryLou Honary, a professor and director of the National Ag-Based Lubricants Center at UNI, says while biodiesel and ethanol produced from traditional crops of soybeans and corn are the obvious choice for the Midwest… despite the criticisms from some city cousins… a diversity of feedstocks and energy sources needs to be the country’s goal:

The economic downturn has exposed many fallacies regarding biofuels. Most important, the recent drop in farm commodity prices has shown that the increase in the cost of food was not all because of the increased production of biofuels, but rather it was due to the absurd increases in the price of petroleum, $146 per barrel just a few months ago.

It also exposed the fact that the best intentions could be attacked for the wrong reasons. Just a few months ago, U.S. farm producers and the biofuels industry were being blamed as the root cause of food riots, starvation and deforestation of the Amazons, not the $5-per-gallon diesel fuel required to transport the foodstuffs…

During the past three years, when petroleum prices began to increase, most politicians forgot about biobased products and biopower sources and collectively jumped on the biofuels-only band wagon. Of course, with an annual U.S. consumption of nearly 165 billion gallons of gasoline and 45 billion gallons of diesel fuel, or more than one-half of all of our total petroleum use, it would be difficult not to get caught up in the excitement. However, conventional wisdom requires diversifying and suggests not putting all the eggs in one basket. By making biofuels the primary focus of U.S. efforts to reduce imported oil, an easy target was provided to detractors, with devastating results.

The country will be better served by promoting an array of alternative energy sources and biomass-based fuels, chemicals and bioproducts. Biofuels may get more support due to their sales volumes, but the message should be balanced and emphasize reduction of imported petroleum through promotion of all three priorities: bioproducts, biopower and biofuels.

Biodiesel, Ethanol, Miscellaneous, News, Opinion

Novozymes Announces 2G Enzyme Family – Cellic

Joanna Schroeder

It is getting more difficult everyday for the cellulosic naysayers because the ethanol industry is several steps closer today to producing commercially viable cellulosic ethanol through the research and development efforts of the industry’s largest enzymes producer, Novozymes. Executive Vice President, Peder Holk Nielen, announced during the National Ethanol Conference that their new cellulosic enzyme family, CellicTM, has the best cost/performance ratio seen in the industry so far.

Novozymes Novozymes has been vocal about its commitment to bringing process improvements and lower enzyme costs to market by 2010. They estimate that with the lower enzymes costs a gallon of cellulosic ethanol can be produced for $2.25 per gallon by 2010, which cuts costs by more than half from only 2 years ago while making it competitive with corn-ethanol.

Nielsen said that that are focusing on big volume biomass like corn stover in the U.S. They are looking at the same in China, as well as researching wheat straw and bagasse in Brazil. When asked if the enzymes will be modified for other feedstocks, Nielsen explained that he believes the main enzyme work horses will remain the same and could possibly be adapated to energy crops –crops low in lignon. 

I asked Peder how he felt about Novozymes continued commitment to an industry that is facing great challenges. He replied, “I feel good about it, because I don’t believe oil is going to stay at $38 dollars a barrel, and I believe in the American commitment to building this industry and that’s why we’re also committed to it. That’s always a risk of course. but I think this is the right way for not only America but for the world. Of course its not going to solve all energy problems, but as far as I can see, it is the one and only substitute for vehicle fuels.”

Right now, Nielsen wants the international ethanol industry to know that these enzymes are available to use in pilot plants and eventually, commercial plants. They also have a team that can help their customers with the experimentation. 

For more information the Cellic products, visit www.bioenergy.novozymes.com.

Cellulosic, Ethanol, National Ethanol Conference

New Corn Ethanol Land Use Study Released

Joanna Schroeder

thomasdarlingtonIndirect land-use affects of corn-based ethanol would be “small” reported Thomas Darlington, with Air Improvement Resource, Inc., today during a special press conference as part of the National Ethanol Conference. Darlington has been working with RFA to help legislators, in particular the California Air Resources Board (CARB) and Environmental Protection Agency (EPA) better understand Land-Use Change. Indirect land use research is still in its infancy in terms of the scientific research behind the issue.

The ethanol industry is still awaiting the EPA RFS2 ruling on indirect land-use’s role in greenhouse gas effects, and CARB is scheduled to hold a hearing on their final report on April 23-24th. The industry has been working hard to work with organizations to ensure that legislation is not put into place, based on speculation, that would prohibit the growth of biofuels.

Originally, land use change impact was estimated to be large. But Darlington points out that the earlier studies don’t take into effect yield improvements and “land use credits” from the use of distillers grains. His research also lays out a “philosophical” assumption that if the U.S. exports are constant or increasing even with ethanol, no international land use effects should be assigned to corn ethanol. This was derived from reviewing past research including Argonne National Labs last Fall. In essence, Darlington’s research proves that when taking these elements into account, corn ethanol has a very small impact on land use change and GHGs. 

You can listen to Darlington’s comments here: [audio:http://www.ethanolrfa.org/ethanolreport/audio/nec09-darlington.mp3]

To read the full report, go to RFA’s website.

See photos from the National Ethanol Conference here.

Ethanol, National Ethanol Conference, RFA

Petroleum Gives Keynote Address to Ethanol

Cindy Zimmerman

The vice president of the American Petroleum Institute provided the keynote address at the 14th Annual National Ethanol Conference in San Antonio on Tuesday.

Jim FordIntroducing Jim Ford with API, Renewable Fuels Association president Bob Dinneen stressed the importance of working with the petroleum industry. “They’re our customers, they’re the ones bringing our product to the consumer, so we have to work constructively with them,” said Dinneen.

Ford filled in at the last minute for API president and CEO Jack Gerard, who is preparing for a Congressional hearing in Washington tomorrow. “The U.S. oil and natural gas industry understands and appreciates ethanol’s role in the national gasoline marketplace,” said Ford. “Our industry is the largest consumer of ethanol and a key player in increasing it’s use.” Ford also noted that many petroleum companies are directly engaged in the ethanol business, including BP and Shell.

Ford said the current economic crisis underscores the need for both industries to work together. “If we get it right, we can get our country on the road to economic recovery and ensure that we have the energy supplies that we will need in the decades ahead,” he concluded.


See photos from the National Ethanol Conference here.

Ethanol, National Ethanol Conference, RFA

Small Engine Challenge for Ethanol

Cindy Zimmerman

As the ethanol industry pushes towards higher level blends, one of the biggest challenges will be small engines.

Kris KiserKris Kiser, Executive Vice President of the Outdoor Power Equipment Institute, spoke to the National Ethanol Conference on a Marketing Higher Level Blends panel.

“We are not anti-ethanol,” said Kiser. “We are simply concerned about the welfare and well being of the consumers of our products.” Those products include some 300-400 million lawn mowers, chain saws, trimmers, boats, etc.

Kiser stressed the need for educating the public about the use of higher ethanol blends in small engines and pointed out the problems with warranty protection and potential lawsuits.

He pledged to work with the industry to find ways to use higher level blends of ethanol safely in small engine products.


See photos from the National Ethanol Conference here.

Ethanol, National Ethanol Conference, RFA

State of Ethanol Industry Still Strong

Cindy Zimmerman

The state of the U.S. ethanol industry is still strong, despite significant challenges, according to Bob Dinneen, president and CEO of the Renewable Fuels Association.

Bob Dinneen“Some look at what we’re up against and see “an industry in crisis.” I look at what we’re up against and see an industry with the perseverance and determination to succeed,” said Dinneen in his annual address this morning at the National Ethanol Conference in San Antonio.

Dinneen outlined the accomplishments of the industry in the past year, including record production at more than nine billion gallons, economic growth of 34 percent, another 240,000 jobs, and 85 percent operating capacity despite recent plant closures.

Acknowledging the challenges facing the industry, Dinneen called for unity – both in the United States ethanol business and internationally. “Our industry must reject division and approach the challenges that face us all with the same spirit of cooperation, dedication and vigor that has always served us well,” he said. Dinneen also announced that the national ethanol trade associations of Canada, Europe and the United States are joining together in a Global Alliance to educate and promote ethanol in international forums.

You can listen to Bob’s speech here: [audio:http://www.ethanolrfa.org/ethanolreport/audio/nec09-dinneen-open.mp3]

At about 1800, attendance at the National Ethanol Conference is down less than organizers expected compared to last year, and those who are at the meeting continue to be optimistic about the future of the industry.


See photos from the National Ethanol Conference here.

Ethanol, National Ethanol Conference, News, RFA

Book Review – The First Billion is the Hardest

Joanna Schroeder

tboonepickensWith the economy in the toilet, I thought I’d get a little inspiration from T. Boone Pickens’ book, “The First Billion is the Hardest.” I don’t know about you, but for me the first million is still eluding me…. Pickens was originally known as an oil guy, but today is best known for his role in promoting wind energy and natural gas in the automotive sector. He is also the single largest owner of water rights in Texas (a commodity he is hoping to make millions on).  One other thing he is known for is his lack of support for biofuels such as ethanol—although he cedes he rather support biofuels than pay trillions of dollars for oil from the Middle East.

The majority of his book travails his business life and it is heartening to learn that he both succeeded and failed in his ventures. Ironically, he was out of oil and in his late 70s when he actually made his first billion. But at the end of the book, he briefly lays out his energy plan.

However, before he does that, he has a message for those of you who think we can domestically drill our way out of our oil problem. Consider Pickens’ three rules of energy:

1)    The cost of finding oil and gas is always higher than you originally think.
2)    Oil and gas always take longer than expected to get on production.
3)    Discoveries are never as large as producers originally think.Read More

book reviews