45 MGY Biodiesel Plant to Open in Illinois

John Davis

Blackhawk Biofuels has announced it will cut the ribbon on its newest biodiesel plant this coming Wednesday (Nov. 19) in Danville, Illinois, with production at the 45-million-gallon-a-year facility to start the next day.

This story in TradingMarkets.com says the plant will at first use soybeans from Bunge Milling, adjacent to the biodiesel plant:

The cost of soybeans, which had skyrocketed in recent years, had kept the facility’s construction from completion before the new investors took over, Vermilion Advantage President and CEO Vicki Haugen said in May.

Although soybean prices have fallen, the plant will help the local ag economy by allowing farmers to sell their soybeans at a good price in Danville, according to Vermilion County Farm Bureau spokesman Tom Fricke.

The plant’s biodiesel would be created from Bunge’s soybean oil and eventually, alternative feedstocks like animal fats.

The article goes on to say that Blackhawk has an agreement with Iowa-based Renewable Energy Group to get the animal fats needed. Private investors put in $25 million, while the State of Illinois kicked in another $19.8 million to make the refinery a reality.

Biodiesel

Alternatives Helping Drop Oil Prices

John Davis

This past summer, when oil prices were skyrocketing past $145 a barrel, one man was saying that the price would fall back to $60. People laughed and said we had seen the end of less-than-$100-a-barrel oil. Well, that price has dropped below $60, and 82-year-old oil analyst Henry Groppe has proved his critics wrong… again.

So, when Groppe says in this article from Toronto’s Globe and Mail that global oil production has peaked, but alternatives, such as biodiesel, ethanol, solar and wind, will help keep those prices down by replacing that diminishing oil supply, maybe more will listen:

His view is based on a fundamental belief that global oil production has peaked, and is destined to go into a slow but steady decline. At the same time, though, he also believes those higher prices will result in demand destruction as consumers shift to alternative fuels – thus keeping a lid on prices, albeit at higher levels…

He said such a change in consumption is already happening, and not just because of a global economic slowdown. (The Organization for Economic Co-operation and Development yesterday slashed its 2008 and 2009 global demand estimates, citing declining estimates for world economic growth.) Power generators and major industrial consumers have already been switching away from oil and toward cheaper coal and natural gas, and many are in the process of retooling their equipment to lower consumption and shift to cheaper fuels.

The article goes on to point out that Groppe doesn’t believe that the number of cars on the road worldwide will go down, but increased alternative fuels used especially in the industrial sector will offset any production declines and consumption increases that come along.

Biodiesel, Ethanol, Solar, Wind

Oklahoma Potentially Alt Energy Leader

John Davis

While it might have a past deeply rooted in petroleum, attendees of the Oklahoma Biofuels Conference in Oklahoma City this week were told renewable energy has a huge future in the Sooner State.

This story from Forbes says a huge wind corridor in the western part of Oklahoma, along with perennial native grasses for biofuels, gives the state a great potential to be a leader in alternative energy:

“We have 40,000 megawatts of wind potential in western Oklahoma, and that industry is exploding out of the ground as we talk,” said Oklahoma Energy Secretary David Fleischaker. “The Obama administration’s attitude toward bringing wind into the grid will really benefit that industry in Oklahoma.

“In addition, to the extent we have the ability, we’ll see a lot more funding of research important to pushing the conversion of biofuels technology.”

Fleischaker said using perennial native grasses, like switchgrass, as a source for biofuel has a number of advantages over annual crops, like corn, that take much more energy to produce.

“If you have an annual, you’ve got to pull the tractor out of the barn and plant it every year, which takes a lot of energy,” Fleischaker said. “If you have a perennial, it grows back every year automatically and you can leave the tractor in the barn.”

biomass, Ethanol, News, Wind

SF Auto Show to Feature Biodiesel, Hydrogen & More

John Davis

Luxury vehicles, exotic new rides, and the latest in domestic developments are all part of any auto show. Add to that list the environmentally-friendly aspects of a new car at this year’s San Francisco Chronicle|SF Gate.com 51st Annual International Auto Show.

This story from the Chronicle has the green details about the week-long event slated to start on November 22nd:

If your interests range more toward eco-friendly vehicles, you’re in luck. AAA’s Greenlight Initiative Showcase returns with an exciting collection of alternative fuel vehicles. This year’s showcase will feature five alternative fuel vehicles including a PHEV (Plug-in Hybrid Electric Vehicle) from CalCars that gets more than 100 miles per gallon, a VW Jetta that runs on both biodiesel and vegetable oil, a hydrogen fuel-cell vehicle from the California Air Resources Board and AC Propulsion’s eBox – an all-electric conversion of the popular Scion xB. In addition, visitors to the AAA booth can see a live demonstration of a Prius being converted to a plug-in hybrid. AAA Members receive two-for-one admission to the show Nov. 24 to 26.

More details are available at www.sfautoshow.com.

Biodiesel, Hydrogen

EPA Publishes Biodiesel Facility Environmental Rules

John Davis

The U.S. Environmental Protection Agency has published environmental regulatory rules and requirements for the construction and operation of biodiesel production facilities.

In a press release, the agency says it’s a user-friendly manual for the 176 biodiesel plants in operation nationwide:

Region 7 Administrator John B. Askew said, “We are taking steps to provide useful tools to help biodiesel facilities comply with environmental regulations. The manual serves as a road map of federal environmental information. EPA is addressing our nation’s growing energy demand in a way that supports our goals for a clean environment, supports farmers and rural America, and supports greater energy security.”

The Midwestern states are active on America’s renewable fuels frontier. Through the long-term efforts of the agricultural and biodiesel community, rural residents are seeing growth in the construction of biodiesel plants and the supporting infrastructure.

The manual provides practical examples to ensure compliance with environmental regulations. A contact directory of key federal and state officials is included in the manual. EPA Region 7 staff members are available to answer questions about the applicability of environmental requirements to renewable fuel facilities.

National Biodiesel Board CEO Joe Jobe commended the EPA for developing the manual for the industry:

“We appreciate that the document includes EPA’s recognition that biodiesel contributes to the wellbeing of the environment by ‘significantly reducing greenhouse gas emissions’ and other pollutants,” he said. “Biodiesel use is a viable part of protecting the environment, and we look forward to working closely with the agency on future mutual goals.”

You can read the manual by clicking here.

Biodiesel

Harnessing the Wind Without a Breeze

John Davis

One of the knocks against wind energy is that you don’t have power if you don’t have wind. Well, an energy company in the Upper Midwest might have the solution.

This story from the Minneapolis (MN) Star-Tribune says Xcel Energy Inc. has teamed up with the state of Minnesota and a Virginia-based technology firm to test the first battery in the country capable of storing wind energy:

The breakthrough technology, which is the size of two semitrailer trucks stacked atop each other, was built in Japan and shipped to Luverne, Minn., where it will store electricity generated by the nearby Minwind Energy wind turbines. S&C Electric Co. expects the equipment will be completely installed by April.

The battery consists of a score of 50-kilowatt modules. When it is fully charged, the massive sodium-sulfur battery — which weighs about 80 tons — can store 7.2 megawatt-hours of electricity. That’s enough to power 500 homes for about seven hours. It will cost more than $5.4 million to buy and install the battery and analyze its performance.

The technology could help allay critics of wind energy, who lament that no electricity is produced when there’s no wind. If successful, the battery will store wind energy and release its power onto the electrical grid when the air is still.

“Energy storage is key to expanding the use of renewable energy,” Xcel Chairman and CEO Dick Kelly said. “This technology has the potential to reduce the impact caused by the variability and limited predictability of wind-energy generation.”

Xcel, has invested $3.6 million in the project and hopes that the battery will become key to its wind energy operations.

Wind

Colorado Firm Building Algae-Biodiesel Plant

John Davis

A Fort Collins, Colorado biofuel company will build an algae-biodiesel plant on an Indian reservation in southern Colorado.

Solix Biofuels has announced it has raised $10.5 million in funding with another $5 million commitment from investors to build the facility on 10 acres on the Southern Ute Indian Reservation. This story on Colorado.com has details:

The plant will be jointly developed by Solix and Southern Ute Alternative Energy LLC.

“We’re able to use the resources available, lots of sun, lots of land that has no other real use because it’s desert and the available saline water and the CO2 from the industrial plant,” said Bryan Willson, co-founder and chief technology officer for Solix.

A large research and development effort will remain in Fort Collins.

The Durango facility will be a significant advancement for Solix, according to the company, providing the capabilities to produce thousands of gallons of algae-based biofuel at a rate per acre higher than current projects.

Currently, algae grown in Solix photo-bioreactors create five times the amount of fuel per acre of land per year than agriculture-based fuel such as corn-based ethanol and soy- or canola-based biodiesel, according to the company.

Company officials say the facility won’t be on a largescale right away but is hoped to set the stage for a much bigger operation in the future.

Biodiesel

Big Sky Professor Discovers Biodiesel-Producing Fungus

John Davis

A trip to a Patagonian forest (that’s in South America) has produced the latest development in the biodiesel game.

Dr. Gary Strobel from Montana State University has found the endophytic fungus, Gliocladium roseum — a hydrocarbon-producing fungus he found growing in a tree in Patagonia — has been shown to produce many of the same hydrocarbons found in diesel. This story from Biodiesel Magazine says Strobel calls his discovery myco-diesel:

Strobel, a professor in the plant sciences and plant pathology department at Montana State University, explained that many organisms produce the shortest chain hydrocarbon, methane, and a number of organisms make longer-chain hydrocarbons that become increasing wax-like as the carbon chains get longer. However, in an extensive search of the literature, no other organism has been identified that produces as many short-chain hydrocarbons as Gliocladium roseum.

“How long it will take to make it practical to use is anybody’s guess,” Strobel said. “My son is doing the genetic profile and genetic sequencing. Perhaps these genes could be moved into other organisms like yeast or E coli that grow faster.” His son, Scott Strobel, is chair of Yale University’s Department of Molecular Biophysics and Biochemistry.

Strobel has published a paper on the subject due out in the November issue of Microbiology. He’s headed next to the rain forests of Borneo and then to Patagonia again to find more specimens to test.

You can read more about Strobel and his work on his Montana State web site: plantsciences.montana.edu/facultyorstaff/faculty/strobel/.

Biodiesel

MO Agribusiness Summit Focuses on Biofuels

The 2008 Missouri Agribusiness Summit was held today in Columbia, MO and featured a wide array of speakers presenting on biofuels.

Leading off the event was a welcome by Troy Norton of Williams-Keepers. Presentations on cellulosic ethanol, the Farm Bill, Federal and State legislation, and ethanol and biodiesel markets followed.

“There are several challenges that we have to overcome after this election,” stated Missouri Rep. Brian Munzlinger, Chairman of the Special Committee on Agribusiness. “There is uncertainty in agriculture at this time with the new Governor, DNR and the Department of Agriculture.”

Jenna Higgins Rose from the National Biodiesel Board said, “The National Biodiesel Board’s Future Vision is to increase the demand for commercially produced biodiesel within the United States through education, communication, and quality assurance programs.” She added that the goal of NBB is to have 1.85 billion gallons of B100 sales, mostly as blends by 2015.

Sponsoring the summit were: Bryan Cave, LLP; MO Agricultural and Small Business Development Authority; MO Corn Growers Assn.; MO Soybean Assn.; and Williams-Keepers, LLC.

Biodiesel, Cellulosic, E85, Ethanol, News

Report Indicates Little Land Use Impact for Ethanol Production

Cindy Zimmerman

RFAThe amount of agricultural land required to produce 15 billion gallons of grain ethanol in the United States by 2015, as required by the 2007 Energy Independence and Security Act (EISA), is likely to be less than 1 percent of total world cropland, according to a new report released today by the Renewable Fuels Association.

According to the report, “Understanding Land Use Change and U.S. Ethanol Expansion,” gains in agricultural productivity, coupled with the contribution of feed produced as an ethanol co-product, are expected to significantly mitigate the need for conversion of non-agricultural lands to support expanded U.S. biofuels production.

Moreover, there is no empirical evidence demonstrating land conversion abroad is a result of U.S. biofuels production. “Unfortunately, the current state of land use change science is far from conclusive and no consensus exists on how best to analyze the potential indirect land use impacts of expanding biofuels production,” continued the report.

The report analyzes historical cropland and crop utilization trends, explores the complex and multifaceted nature of land use changes, and discusses the uncertainty of current land use change modeling approaches.

Ethanol, News, RFA