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NY Looks to Eliminate Alt Fuels Tax Credit, Reward Polluting Petroleum

John Davis

patersonNew York’s governor wants to get rid of a tax credit for alternative fuels and fuel cells, while keeping a much more expensive credit for a very dirty form of diesel.

Environmentalists are up in arms over Gov. David Paterson’s plan to cut the $5 million in credits, which he says are underutilized, at a time when companies are poised to launch technology to better take advantage of those incentives, according to this article from Crain’s Insider:

But cutting the credits, even if they are not working as planned, doesn’t square with the governor’s environmental message, says Carol Murphy, executive director of the Alliance for Clean Energy.

“It’s a major disconnect,” she says. “Maybe they were underutilized because the products weren’t there yet.”

Murphy points out that companies like Albany-based Plug Power, which employs 120 people throughout the state, are ready to unveil new fuel-cell lines. Ending the credits just as new products are coming to market might harm companies that could help revive the upstate economy.

David Gahl of Environmental Advocates of New York says the state would do better by eliminating a credit for bunker fuel. Gahl estimates the state loses more than $30 million each year in credits for the fuel, a form of diesel used mainly in cargo ships. The fuel, which is high in pollutants that cause acid rain and smog, can also be used in some power plants, including three in New York City.

Amazing, huh? Five million dollars is too expensive for the state to spend for clean air, but $30 million is OK for more pollution. Go figure!

Government, Miscellaneous

Confirmation: Biodiesel Not to Blame in Minnesota

John Davis

A new report confirms that biodiesel was not to blame for stalling school buses in Minnesota last week.

When the temperatures in the Minneapolis area dropped to -20 to -30 degrees F, some students got an extra day off from school when a handful of buses wouldn’t run. Naysayers immediately blamed biodiesel, but state officials suspected the green fuel was getting a bum rap (see my post from January 17). Now, a study shows the bio part of biodiesel had nothing to do with the problem.

This National Biodiesel Board release has details:

“The problems with school buses in Minnesota had nothing to do with biodiesel,” said Bill Walsh, Communications Director for the Minnesota Department of Commerce. “An independent investigation confirmed what we believed last week – when it gets to 20 degrees below zero in the Midwest, diesel engines have trouble operating unless they are properly maintained – whether or not they are using a biodiesel blend.”

The report completed Friday confirms that components of diesel – not biodiesel – caused school buses in Bloomington, MN to malfunction last week.

“Nothing is more important than getting kids to school safely, which is why we worked proactively to find out exactly what troubled the buses in Bloomington,” said Ed Hegland, National Biodiesel Board Chairman.

The report issued Friday by Meg Corp. and paid for by the distributor that supplied the fuel, Yokum Oil, analyzed filters from the buses that broke down. The buses were using B2, which is 98 percent petroleum diesel blended with 2 percent biodiesel. Minnesota has a statewide B2 mandate in effect. “We found that whatever was plugging the filters was not biodiesel, but a substance found in petroleum,” the report concludes.

Plenty of us from cold weather states recognized that any diesel would have trouble in that kind of weather. It’s good to know that science proves our instincts right.

Biodiesel

AFVI Offers Live Webinar Focusing on Transitioning to Alternative Fuels

afviA free webinar sponsored by the Alternative Fuel Vehicle Institute (AFVI) called Bottom of the Barrel: Maximizing Your Bottom Line
in the Transition to Alternative Fuels will take place Tuesday, January 27, 2009 at 1:30 p.m. ET.

The webinar will feature leading national experts in who are slated to present at the Alternative Fuels & Vehicles Conference + Expo in Orlando, Florida in April including: Mike Marshall, JD Power & Associates; Leo Thomason, Alternative Fuel Vehicle Institute; and Robert White, Renewable Fuels Association. Each will tackle one of the above questions and participants will have a chance to ask questions of the subject experts.

The webinar will answer the following:

• What accounts for the dramatic growth in the vehicle conversion market?
• Is it possible for biofuels to be a key driver in displacing U.S. dependence on imported oil?
• How will vehicle options change for fleet decision makers in the coming years?

The webinar is free but space is limited to 250 participants. Information regarding registration can be found by clicking here.

Facilities, News

Michigan State Patents Cellulosic Ethanol Process

Cindy Zimmerman

Michigan State University (MSU) has patented a process to pretreat agricultural waste products that would dramatically reduce the cost of making biofuels from cellulose.

According to a university release, The AFEX (ammonia fiber expansion) pretreatment process, developed by MSU chemical engineering professor Bruce Dale, uses ammonia to make the breakdown of cellulose and hemicellulose in plants 75 percent more efficient than when conventional enzymes alone are used. Cellulose in plants must be broken down into fermentable sugars before they can be turned into biofuel.

Currently, pretreating cellulose with acid is a common way to break the material down into fermentable sugars. But after acid pretreatment, the resulting material must be washed and detoxified. That removes nutrients, leading to the mistaken idea that crop waste lacks the necessary nutrients, Dale said. Cellulosic material pretreated with the AFEX process doesn’t have to be washed or detoxified, allowing ethanol to be created from cellulose without added nutrients or other steps.

The next step for the patented process could be a pilot plant to commercialize technology. “There are several companies – including the Mascoma Corp., which plans to open one of the nation’s first cellulosic ethanol plants here in Michigan – that may be interested in using this technology,” Dale said. “We are working to make the AFEX technology fit these companies’ needs.”

Dale is associate director of the MSU Office of Biobased Technologies and has a leadership role in the Great Lakes Bioenergy Research Center. The center is a partnership between Michigan State and the University of Wisconsin-Madison, funded by the U.S. Department of Energy, to conduct basic research aimed at solving some of the most complex problems in converting natural materials to energy. The research is published in the current issue of the Proceedings of the National Academy of Sciences.

Cellulosic, Ethanol, News, Research

Report Shows Efficiency of Ethanol Production

Cindy Zimmerman

A new report concludes that America’s ethanol industry is energy efficient and doing its part to reduce greenhouse gas emissions.

The University of Nebraska-Lincoln’s Nebraska Center for Energy Sciences Research has just released its report entitled “Improvements in Life Cycle Energy Efficiency and Greenhouse Gas Emissions of Corn Ethanol” which was published in Yale’s Journal of Industrial Ecology (JIE).

According to the report, “Direct effect GHG emissions were estimated to be equivalent to a 48% to 59% reduction compared to gasoline, a twofold to threefold greater reduction than reported in previous studies.” The report also found that the eight corn-ethanol scenarios had net energy ratio (NER) values from 1.29 to 2.23, meaning ethanol returned 29 to 123 percent more energy than was required for its production.

The work is based in part on information compiled by the Department of Energy’s Argonne National Laboratory and is considered critical to educating the Environmental Protection Agency, the State of California, and other entities looking at ethanol’s capacity to reduce greenhouse gas emissions from liquid transportation fuels.

Environment, Ethanol, News

Biodiesel Board Congratulates Vilsack & Chu

John Davis

The nation’s primary group representing the biodiesel industry is welcoming two of the newest members of President Obama Cabinet.

The National Biodiesel Board has congratulated new U.S. Secretary of Agriculture Tom Vilsack and new Secretary of Energy Dr. Steven Chu, who both received unanimous confirmation from the U.S. Senate today:

vilsack“Secretary Vilsack has been a consistent proponent of biofuels, and the NBB applauds his speedy and overwhelming confirmation by the U.S. Senate. President Obama has clearly chosen a capable, experienced individual who truly understands the needs of U.S. farmers and the importance of biofuels, and the NBB looks forward to working constructively with chuSecretary Vilsack in his new position at the U.S. Department of Agriculture,” stated Joe Jobe, CEO of the NBB.

“I would like to sincerely congratulate Secretary Chu on his smooth and successful confirmation by the U.S. Senate. Secretary Chu is uniquely qualified to address the numerous challenges he will face in his new capacity, and the U.S. biodiesel industry stands ready to work with Secretary Chu and the Obama Administration to address the nation’s pressing energy needs,” stated [Jobe].

Biodiesel, Government

Airline Industry Strives Toward Biodiesel, Alternatives

John Davis

ataThe U.S. airline industry continues to make efforts to develop alternatives to petroleum-based jet fuels. We’ve been telling you about the various efforts made to run biodiesel in several airliners (see my stories from January 8, 2009 and October 15, 2008 for a couple of examples).

nancyyoungRecently, Nancy Young, Vice President of Environmental Affairs for the Air Transport Association of America Inc. wrote this letter to the editor to our friends at Biodiesel Magazine, in which she talks about her industry’s efforts to to make alternative jet fuels a top priority, thanks in part to the Sustainable Aviation Fuel Users Group:

Another key contributor to this progress is the Commercial Aviation Alternative Fuels Initiative, a diverse consortium of manufacturers, airlines, airports, government agencies and universities that is dedicated to bringing commercially viable, environmentally friendly alternative jet fuels to market.

Since 2006, CAAFI has played a critical role in driving alternative jet fuel research and development, environmental assessment, certification and business integration by developing and progressing roadmaps in these four key areas. As a result, for example, the CAAFI Environmental Team recently developed an approach to methodologies for peer-reviewed life-cycle environmental analyses for alternative jet fuels, which is essential to demonstrating environmental benefits. In another example, CAAFI established a plan and time line for the certification of alternative jet fuels, with certification of a 50 percent synthetic jet fuel expected by mid-2009 and a 50 percent biofuel certification slated for 2010.

Through CAAFI, SAFUG and other important initiatives, our industry is responding to the obstacles to implementing alternative fuels on a wide scale. With jet fuel as our No. 1 cost center and given the clear environmental challenges associated with traditional fossil fuels, no other industry is more motivated to bring alternative fuels to market than aviation.

The letter is a thankful response to Biodiesel Magazine’s January 2009 article entitled “Aviation Alternatives.”

Biodiesel, Indy Racing

Renewable Fuels on Ag Secretary Agenda

Cindy Zimmerman

USDA VilsackIn his first day on the job at the U.S. Department of Agriculture, newly confirmed Secretary of Agriculture Tom Vilsack laid out his top priorities to USDA staff.

In a USDA radio report, Vilsack said that President Obama is “adamant on the need for us to continue to find creative ways to provide the fuel and the energy that this country needs and certainly USDA will be partnering with a number of other agencies and departments in trying to find a focused, aggressive, comprehensive effort.” Vilsack says that rural job growth, fueled partly by renewable fuels, is also on his agenda.

Secretary Vilsack named key members of his staff on Wednesday and will likely announce his choice for deputy secretary of agriculture before the end of the week.

Energy, USDA

Wal-Mart Puts Plentiful Sunshine to Work

John Davis

walmartmexicoSomething we could learn from our neighbors to the south. Wal-Mart Mexico is making good use of that country’s plentiful supply of sunshine as the company has put in a large solar panel array on a roof that will provide a large amount of energy for that store.

A company press release says the photovoltaic complex of more than 1,056 solar panels on the Bodega Aurrera Aguascalientes will generate 20% of the energy used by the store. With its 174 kW capacity, it is the largest photovoltaic complex in Latin America, according to the Mexican Solar Energy Association (ANES):

“This is the first large-scale project to generate energy using photovoltaic panels, not only for Wal-Mart Mexico, but for Wal-Mart International. This puts Mexico at the head of the energy field. The project reinforces our commitment to obtain all the energy the company requires from renewable sources by 2025”, said Raul Arguelles, Senior Vice President for Corporate Affairs and People Division at Wal-Mart Mexico.

The 1,056 solar or photovoltaic panels were installed in 2,173.5 square meters, the equivalent of half the roof of Bodega Aurrera Convencion in Aguascalientes.

Gustavo Tellez Giron, CEO for Water Capital, a company with whom Wal-Mart Mexico worked to install the photovoltaic complex said, “this is a one-of-a-kind project, and its success will allow this technology to be used in many similar situations. The project will result in significant energy savings and environmental benefits.

The project is expected to remove 140 tons of carbon dioxide from the environment. It’s part of Wal-Mart Mexico’s plan to have 100 percent renewable energy sources and no water discharges by 2025 and provide a 25 percent increase in eco-friendly item catalog by 2012.

Imagine if all Wal-Marts north of the border did this. While it might not work every day in every location, think about the number of days these big ol’ Supercenters with a roof full of photovoltaic cells could be off the grid… generating their own power.

Solar

Key Obama Administration Officials Join Environmental Inaugural Ball Celebration

inaugural-ball1Underscoring the high priority the Obama Administration is putting on environmental and energy issues, Secretary of Energy Steven Chu and Environmental Protection Agency Administrator designate Lisa Jackson were among the officials attending the Environmental and Clean Energy Inaugural Ball in Washington D.C. last night.

New Mexico Senator Tom Udall (D-NM) and several current and former members of Congress were also on hand to reiterate the support of Congress for aggressive clean energy programs. General Wesley Clark also joined the celebration, reminding the audience of the importance of domestically produced energy.

With a crowd of close to one thousand people from the energy and environmental communities on hand, Dr. Chu and Ms. Jackson addressed the cheering crowd with promises to take on and win the battle to limit greenhouse gas emissions while creating domestic jobs in new green energy industries.

“This was a sensational event and with all the competing balls going on, for Dr. Chu and Ms. Jackson to take the time to recognize and attend our event speaks volumes,” said Douglas Durante of the Clean Fuels Development Coalition, Co-Chairman of the Ball. “Senator Udall also thrilled the crowd given his lifetime of environmental leadership that he will continue in the Senate. And, General Wesley Clark is taking an active role in biofuels and other issues so we were delighted to have him with us.”

Former EPA Administrator William Reilly, and current Director of the Office of Transportation and Air Quality Margo Oge echoed Lisa Jackson’s commitment to reduce greenhouse gas emissions and work to develop clean and green energy.

The Host Committee putting on the Environmental and Clean Energy Inaugural Ball was comprised of more than 50 organizations in the energy and environmental movement, in addition to numerous corporate sponsors. “We are all working to be part of the solution to a series of connected challenges,” said Durante. “The President recognizes that energy can be a common thread to many issues. The music, the crowd, and the atmosphere were electric, and what a rocking start this was to the next four years,” said Durante.

Photos from the Ball will soon be available in the Photo Gallery at www.environmentalball.org.

Energy, Environment, Government, News