Biodiesel Refinery Idled by Ike Back On Line

John Davis

Back in early September, Hurricane Ike roared ashore on the Texas Gulf Coast as the third most destructive hurricane ever to strike the U.S. A biodiesel refinery in the Houston area that was part of the destruction (see my post from Sep. 29, 2008) has finally recovered and is back on line.

GreenHunter Biofuels has announced in this press release that biodiesel production has started once again:

Located along the Shipping Channel in Houston, Texas, the Company’s biodiesel refinery, one of the country’s largest, sustained a direct hit from Hurricane Ike in mid-September of 2008. Plant debugging had just been completed and the facility was beginning to ramp up production after its original startup in mid-June, prior to the damages caused by the hurricane. Prior to Hurricane Ike, the Company had announced achieving processing rate mileposts of 50% and subsequently 65% of nameplate capacity.

The Company expects to continue its use of 100 percent animal fats (poultry fat and beef talloy) as its primary feedstock, although the GreenHunter BioFuels Refinery is “feedstock neutral” and has used five different varieties of feedstock (vegetable oils and animal fats) to date.

As you might remember from this photo (on right), the plant had 12 feet of water roll through but Bruce Baughman, Senior Vice President of Engineering and Technology, stated, “The approximate 12 feet of floodwater from Hurricane Ike took out a significant amount of electrical equipment, electronic instruments and control devices that have now been replaced and repaired over the last eight weeks. In the same period we have repaired process piping, pumps, intermediate tanks and bulk storage tanks that were damaged by flood waters.”

There’s still plenty of work to do at the plant, and officials anticipate some more bugs along the way, but they expect to be up to 50 percent capacity in the net month.

Biodiesel

Biofuels to Provide Houston Green Power

John Davis

A Texas-based renewable energy company is taking over an abandoned electrical plant with plans to run the generators on green energy sources.

This press release posted on MarketWatch.com says Biofuels Power Corporation will purchase the site, infrastructure and equipment of the decommissioned H.O. Clarke Electric Generating Station in central Houston:

The operational infrastructure on the H.O. Clarke site includes 65,000 barrels of above ground storage tanks and a high-pressure natural gas pipeline that is connected to the distribution system. The H.O. Clarke property is adjacent to a 500 MW switchyard operated by Centerpoint and has ready access to the ERCOT grid through a 12 kV transmission line.

“Our long-term goal is to redevelop the H.O. Clarke site as a clean energy industrial park that will use biofuels, biomass, natural gas, biogas and solar energy to provide green electricity and combined heat, power and refrigeration services for industrial and commercial tenants that need ready access to central Houston, the Houston Ship Channel and the Interstate Highway system,” said Fred O’Connor, President and CEO of Biofuels Power.

Biofuels Power already has two plants in the same area that run on 100 percent biodiesel that generate 15 megawatts of electricity that is sold to local companies. Officials hope the Houston Clean Energy Park will become a model for clean industrial redevelopment nationwide.

Biodiesel, biomass, Ethanol, News

Grant will Assist in Opening 29 E85 Stations in California

Twenty-nine E85 fueling stations will open in the Sacramento, California area by May 2009, thanks to a grant by the California Air Resource Board. The Sacramento air district received $3.5 million to assist in opening these facilities.

“There are not a tremendous amount of vehicles that can handle E85,” said Walt Dwelle, managing general partner of Nella Oil Co. who plans on adding E85 to his stations in North Highlands and Newcastle. “If there’s not a lot of demand, you don’t want to spend that kind of money and have just a few gallons going through.” There are about 388,000 registered FFVs in the state of California.

Pearson Fuels Inc. in San Diego opened the first E85 fueling station in the state in 2003. They also sell the alternative fuel in Concord, Hayward, Carlsbad, and Oceanside and plans to add additional facilities in the near future.

“The market for E85 depends on the price of gasoline,” said Michael Lewis, general manager of Pearson Fuels. “In June at our station down in San Diego, we were selling 1,000 gallons per day or better. But it was $1 per gallon less than gasoline.”

There are currently 13 E85 stations within the state of California.

E85, Facilities, News

Corn Growers Unhappy With VeraSun Contracts

Cindy Zimmerman

Thousands of corn growers from across the Midwest could potentially have their contracts with ethanol producer VeraSun rejected, including the chairman of the National Corn Growers Association (NCGA).

NCGANCGA chairman Ron Litterer of Iowa and others have filed a formal objection with the U.S. Bankruptcy Court in Delaware regarding the proposed disposition of corn contracts by VeraSun Energy Corporation, which filed Chapter 11 at the end of October.

VeraSun announced recently that they are continuing to work with suppliers while pursuing long-term financing.

“Unfortunately, the Company will need to reject some corn contracts for delivery through Dec. 31, 2008 at our Janesville and Welcome, Minn., facilities due to the delayed startups. Other contracts may need to be rejected or renegotiated as we continue to work through them on an individual basis.”

The objection filed by the corn growers indicates specific concerns with VeraSun’s proposed procedures under bankruptcy, which may allow VeraSun to wait until 10 days before contracted delivery date to notify growers of their rejection of the contract. This would essentially leave corn suppliers in a state of limbo while VeraSun is free to determine the market price for corn before deciding whether to accept deliveries under a contract or summarily reject the contract. Litterer believes this would be fundamentally unfair to corn growers and other corn suppliers.

corn, Ethanol, News

POET Could Be Interested in VeraSun

Cindy Zimmerman

POETThe world’s largest ethanol producer could be getting even bigger soon.

VeraSunSpeculation is that POET is behind a potential buyout of VeraSun Energy Corporation, which filed Chapter 11 less than a month ago. VeraSun announced this week that it received a “non-binding unsolicited indication of interest with respect to the purchase of substantially all of its assets.”

Both POET and VeraSun are citing confidentiality considerations for not naming names, but POET CEO Jeff Broin said in a statement that they are “in serious discussions with a couple of ethanol producers regarding possible acquisitions.”

“POET remains profitable despite the current economic challenges facing the ethanol industry thanks to careful risk management and proprietary technology that makes our process for producing ethanol extremely efficient,” said Broin. “These potential acquisitions have met our initial criteria, and we will continue discussions to determine whether the plants are the right fit for our company.”

Ethanol, News

KU* EcoHawks Aim for 500 MPG Car

John Davis

Some University of Kansas* engineering students are working on a car they hope will get 500 miles per gallon… and ethanol and biodiesel look to figure in as some of the fuels it would run on.

This story from the KU* School of Engineering web site says the students are working on a 1974 Volkswagen Super Beetle to turn it into the epitome of hybrid auto efficiency:

“That’s the fun. By the time we’re done, it’s going to be totally different, and it’s going to be great,” says Lou McKown, a University of Kansas senior in mechanical engineering.The EcoHawks hard at work on a 1974 Volkswagen Super Beetle

For his senior project, McKown is part of a team called the EcoHawks, that is taking the iconic round vehicle and transforming it from a motionless heap to a fully integrated hybrid vehicle by the end of the school year.

“We’re just the first year of this, too,” McKown says. “We hope that the work we do this year will provide the basis for the next year and so on.

“Our long-term goal is to make a car that can get efficient fuel anywhere in the country, whether it be electric, ethanol, biodiesel, whatever.”

The students’ advisor hopes they’ll be able to change the car culture in this country by teaching people how to turn their classic into classically efficient.

You can read more about the Kansas* EcoHawks at www.ecohawks.org.

*(Editor’s note: since it is Border War Week between Missouri and Kansas, I am required by Missouri law to spit every time I write or say the word “Kansas.” [ptooey]. And I’m an Iowa Hawkeye fan! But rules are rules.)

Biodiesel, Ethanol, Flex Fuel Vehicles, News

Dems Ready to Introduce Biofuels Bills

John Davis

For the first time in 16 years, Democrats control the U.S. House, Senate and the White House. And for some of the Democratic leaders in the Senate, they see this as the best opportunity to get some of their pet biofuels legislation passed and signed.

This story from CBS News says Sen. Barbara Boxer (D-Calif.), chairwoman of the Senate Environment and Public Works Committee, will offer a couple of bills that will boost the green fuels and help the environment:

One measure would allocate $15 billion a year in grants for advanced biofuel development, and the other would aim to implement an economy-wide cap on emissions.

While the bills are far from drafted, Boxer said both would be designed as economic stimulus packages to create more green jobs and jump-start Barack Obama’s challenge to reverse global warming.

“I believe strongly that we have a recipe for economic recovery,” Boxer told reporters at the Capitol. “The time to start is now, and that’s why my colleagues and I are here to step up to President-Elect Obama’s call to action to address global warming and create millions of green jobs in America.”

Boxer’s bills would most likely meet President-elect Barack Obama’s recent call for legislation to address climate change by reducing emissions.

Biodiesel, Ethanol, Government, Legislation, News

Grants Boosting CT’s Biodiesel Industry

John Davis

Seven Connecticut biodiesel distribution firms have received a total of $350,000 in grants.

This press release from Connecticut Gov. M. Jodi Rell says the money was handed out under the state’s Distribution Facilities Grant Program to companies that undertake projects to develop biodiesel distribution equipment and facilities:

“Support for biodiesel production is not only an economic development issue but also an environmental issue,” Governor Rell said. “By creating more opportunities for renewable energy sources we can assist individual businesses, reduce energy costs, improve air quality and reduce our dependence on foreign sources of oil. Programs such as this are a key component of my agenda to make Connecticut a leader in sustainability.”Read More

Biodiesel, Government

Fed Fleet Not Fueling Vehicles with Alternative Fuels

The Federal Government’s plan of building their fleet as alternative fuel may be in jeopardy. According to the Washington Post, for the past 16 years they’ve acquired about 112,000 vehicles that can burn something other than fossil fuels. The vehicles are purchased, however, the fuel is difficult for them to find.

“I call it the ‘Field of Dreams’ plan. If you buy them, they will come,” said Wayne Corey, vehicle operations manager with the U.S. Postal Service. “It hasn’t happened.”

Congress has mandated that Federal agencies increase their number of alternative fuel vehicles. Many of the vehicles which have been purchased are E85 compatible, but many of the vehicles were sent to locations in which the fuel is not available. By law, the vehicles must use the alternative fuel should the fuel be available within five miles or 15 minutes from the pump. At this time, 92 percent of the vehicles are not using these such fuels.

The National Ethanol Vehicle Coalition (NEVC) assists in locating the appropriate location for E85 fueling stations. NEVC Executive Director Phil Lampert added, “While the preceding article is factually correct, the NEVC has successfully worked with a number of regional offices of the USPS, Dept. of Defense, and General Services Administration to locate FFVs in areas where fueling infrastructure exists. Certainly much can be done to increase the use of E85 in FFVs, but it should be noted that some federal agencies, (particularly regional offices) have been successful in placement of FFVs in areas with fuel.”

E85, Ethanol, Facilities, Government, News

Ethanol Groups Join Together

Cindy Zimmerman

EPICThe Ethanol Promotion and Information Council is joining with the newly-formed Growth Energy group.

EPIC Executive Director Toni Nuernberg made the official announcement today that the organization’s board of directors is recommending a transition plan to the membership for the two groups to combine.

Growth Energy“The mission of EPIC’s formation— growing ethanol awareness through public relations, marketing and promotions — will continue as a core platform of Growth Energy’s initiatives,” said Nuernberg in a statement. EPIC’s programs and staff will be transitioning into Growth Energy over the next few months.

Growth Energy was announced earlier this month as a new ethanol organization formed by the same principals who started EPIC in 2005, “committed to the promise of agriculture and growing America’s economy through cleaner, greener energy.”

EPIC, Ethanol, Growth Energy, News