Suncor Expands Ethanol Production in Canada

John Davis

The largest ethanol facility in Canada is becoming even larger. Suncor Energy has announced plans for a $120 million expansion of its St. Clair Ethanol Plant. The expansion is expected to double the plant’s ethanol production of 200 million litres per year to 400 million litres annually.

Expanding ethanol production is part of Suncor’s plan to invest $750 million in renewable energy initiatives by 2012. Approximately $250 million has been invested to date in wind power projects in Alberta, Saskatchewan and Ontario as well as the first phase of ethanol production in St. Clair.

Construction of the expanded facilities will begin immediately with completion targeted for late 2009. Approximately 250 construction jobs are expected to be created during the expansion with 20 new full-time positions created once the new facilities are operational.

The St. Clair Ethanol Plant has been in production since July 2006. Suncor has announced it’s also planning a commercial demonstration facility for developing cellulosic ethanol in Colorado. The cellolosic plant will convert wood residues into ethanol and commercial products.

Cellulosic, Energy, Ethanol, Facilities, News

Alternative Energy Incentives Hit Snag in Senate

John Davis

A bill that would have extended and boosted the producer-incentive tax breaks on a host of alternative energy sources, including wind, solar, biodiesel, clean-coal and other projects to help spur alternative energy development, has been stopped in the U.S. Senate… for the time being.

The measure, sponsored by Sen. Max Baucus (D-Montana), would have extended the $1-a-gallon producer tax incentive for biodiesel but failed when Senate Democrats failed to garner the 60 votes needed to invoke cloture… cutting off debate and allowing a majority vote on the bill. Senate Republicans opposed the measure largely because of some of the tax hikes attached to the bill. But this story from the National Journal says it’s not dead yet:

The measure is in limbo, although Senate Majority Leader Reid can call the bill back up for a vote. Aiding the GOP cause were Democratic absences, including Senate Appropriations Chairman Robert Byrd and Sen. Hillary Rodham Clinton of New York. Those two may be back for votes soon, however, giving Democrats a better chance on a revote as well as giving affected industries more time to lobby. Speaking earlier today at the U.S. Chamber of Commerce, Baucus said he thought cloture could be invoked within a week to 10 days. One lobbyist predicted Republicans would eventually back the bill or risk blame for expiration of the tax breaks, particularly vulnerable incumbents like GOP Sens. John Sununu of New Hampshire and Norm Coleman of Minnesota.

Biodiesel, Government, Legislation, Solar, Wind

Algae-ethanol Coming Soon

John Davis

Well, just as soon as I posted the previous story about Solazyme making the world’s first algae-based biodiesel to meet American Society for Testing and Materials (ASTM) D-975 specifications, I found a story about a producer that plans to make ethanol out of algae.

This story from Reuters says Algenol Biofuels has big plans for making the green fuel south of the border:

The company has signed an $850 million deal with a Mexican company BioFields to grow algae, one of the planet’s first life forms, that has been trained to convert water, sunlight, and the greenhouse gas carbon dioxide into motor fuel.

Paul Woods, Algenol’s chief executive, said he’s known the technology for decades but that today’s record oil prices and rising alarm about global warming make it time to produce the fuel.

“It really is a one-two combination that no other company can deliver,” Woods told Reuters in an interview this week.

Woods says it was back in the 1980s when he came up with the process that allows the algae cells to produce ethanol directly… as opposed to biodiesel’s method of having the algae produce oil to be made into biodiesel.

Algenol plans to produce 100 million gallons of ethanol at its plant in the Mexican Sonoran Desert by the end of next year. And by 2012, company officials say they’ll be cranking out a BILLION gallons a year.

Ethanol, News

Solazyme Algae-Biodiesel Meets Standard

John Davis

As we told you yesterday, Solazyme’s algae-based biodiesel now meets the strict American Society for Testing and Materials (ASTM) D-975 specifications… the first algal-biodiesel to meet the standard set for all regular diesel.

Today, the San Francisco-based synthetic biology company put out its own press release:

In a 100% blend, SoladieselRDTM has been road tested in a factory standard 2005 Jeep Liberty diesel. The fuel’s chemical composition is identical to that of standard petroleum based diesel, and SoladieselRDTM is fully compatible with the existing transportation fuel infrastructure. Having fewer particulate emissions, SoladieselRDTM also has a more desirable environmental footprint than standard petro-diesel. In addition, it meets the new ASTM ultra low sulfur diesel (ULSD) standards.

“This now marks the production of our second fuel that meets current U.S. fuel specifications and is an important validation of our proprietary process using microalgae to produce renewable fuels,” said Jonathan Wolfson, chief executive officer of Solazyme. “Solazyme’s leadership in the green fuels space will continue to grow as we now execute on our strategy for commercial launch.”

The standard is considered important as it helps secure Solazyme’s place as a maker of renewable fuel from a truly non-food source.

Biodiesel

Pearson Fuels Adds Two More E85 Stations in California

Pearson FuelsThe state of California now is the home of 10 E85 fueling locations. Pearson Fuels is the owner of three of the facilities, two which has been recently opened.

“We are proud to announce that our second and third E85 dispensers are now open and distributing fuel in Carlsbad, California,” said Mike Lewis with Pearson.

In 2003, Pearson Fuels opened the first E85 fueling location in the state. They centered the location in San Diego, California and also added biodiesel, compressed natural gas, electric vehicle charging, and propane.

The company was a major grant recipient in May 2007 by the California Air Resources Board. The groups worked together to bring E85 to the two new stations.

For more information regarding these facilities, go to http://www.pearsonfuels.com/e85/.

E85, Ethanol, Facilities, News

Indiana Police Department Only to Use E85

West Lafayette PoliceThe West Lafayette, Indiana Police Department is trying to help their budget by using E85 in their seven new FFV squad cards. The department reportedly spends between $11K and $12k a month for fuel.

“The price is right now to give it a try,” said Police Chief Jason Dombkowski. “Looks like a dollar savings per gallon. We think we can save up to $1,000 a month on fuel consumption costs.”

Although the department realizes there is less energy in E85 than gasoline (equating to less miles per gallon when using the alternative fuel), they receive a significant discount in the price making it adventageous to purchase E85.

The FFV Ford Crown Victorias will use E85 for 60 days and if they see a cost savings, will consider converting much of their fleet to E85 compatible.

“We are going to try to go straight E85 flex fuel for now and analyze and see how cars are doing for our needs,” said Dombkowski. “At the end of the summer if gas prices are still what they are and we’re getting the results we need we may do some conversion.”

E85, Ethanol, Government, News

Ag and Energy Chiefs Say Ethanol is Moderating Gas Prices

Cindy Zimmerman

The U.S. Secretaries of Agriculture and Energy sent a letter to Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM) answering questions about biofuels production and food prices.

Sam BodmanIn the joint letter, Energy Secretary Samuel Bodman and Agriculture Secretary Ed Schafer noted the complexity of the food and fuel pricing issues and cautioned the senator “against hasty judgments driven by highly questionable, agenda-driven calculations, some of which have been featured prominently in the popular press.”

“It is clear, however, that biofuels are already moderating gasoline prices,” they state in the letter. “That impact is likely to grow substantially as more biofuels come to market.”

Ed SchaferThe secretaries answered six specific questions related to the production of ethanol and biodiesel and the price of both food and fuel. Regarding food, they responded that biofuels accounted for approximately 3-4 percent of the overall rise in retail food prices domestically and as much as five percent globally. They note the many other factors contributing to higher commodity prices, including increased demand for food; lowered production and reduced stocks due to weather; export restrictions and – record prices for gasoline and diesel fuel that have increased “the costs of producing, transporting, and processing food products.”

As for fuel prices, the secretaries said, “We estimate that, if we had not been blending ethanol into gasoline, gasoline prices would be between 20 cents per gallon to 35 cents per gallon higher.”

Biodiesel, Ethanol, Government, News

Corn Growers Confident Despite Lowered Forecast

Cindy Zimmerman

NCGAOfficials with the National Corn Growers Association say while they are concerned about the potential impact of weather on this year’s corn crop, growers are confident they can meet the demand.

“Thanks to a very successful 2007, we started this year off with a significant level of beginning stocks that can help see us through a season of reduced production,” said NCGA President Ron Litterer, a grower from Greene, Iowa.

In its latest supply/demand report, the U.S. Department of Agriculture this week lowered expected yields for this year’s corn crop by five bushels per acre and are now projecting the 2008 corn crop to be 11.7 billion bushels, down 390 million from last month. The yield was reduced by 5 bushels an acre due to “slow planting progress, slow crop emergence, and persistent, heavy rainfall across the Corn Belt.”

In its report, the USDA also increased its projection of carry-out from the current crop marketing year to 1.433 billion bushels, based on slightly reduced projections for exports this year. The latest projection for corn to produce ethanol in the current year remained unchanged at four billion bushels.

corn, Ethanol, News

Cellulosic Focus at Ethanol Workshop

Cindy Zimmerman

2008 Fuel Ethanol WorkshopMoving to second generation ethanol production is obviously a priority for the nation’s ethanol producers.

A significant number of the workshops scheduled for the 2008 Fuel Ethanol Workshop next week in Nashville focus on different aspects of cellulosic ethanol production development.

Workshops titles include “Cellulose Technology Update,” “Alternative Feedstocks,” “Cellulose Technology Components,” “Enzyme Technology: Cellulose,” and “Cellulose Biorefining.”

This is the 24th year for FEW, which is the premier networking and educational conference for the ethanol industry. It will be held June 16-19 at Opryland Resort in Nashville.

Cellulosic, Ethanol, News

High Fuel Prices Drive Support for Ethanol

John Davis

EPIC Fueling LogoAmerican motorists are rethinking their driving habits. That is, according to a new survey commissioned by the Ethanol Promotion and Information Council. The survey shows that consumers think skyrocketing gas prices means the nation should start moving away from oil.

The EPIC survey found 47 percent of those polled stated that a fuel price below $5 a gallon should be the point where fossil fuels are no longer our primary fuel sources. An additional 27 percent of those polled reported that the critical price point lies between $5 and $5.99. America is getting close to the break-point as Sunday, the national average of a gallon of gasoline rose to $4.005, 90 cents higher than a year ago, according to AAA.

“Motorists are frustrated and angry about high gas prices. Everyone is feeling the pinch at the pump, which really underscores our need for biofuels,” said Toni Nuernberg, executive director of EPIC. “As gas prices continue to skyrocket, we must continue the push for the only current transportation energy option we have today-biofuels.”

Even in the face of heavy criticism from anti-ethanol groups and misplaced blame for rising food prices, the ethanol fuel industry continues to help keep fuel prices below the even-more exorbitant prices consumers would pay without the availability of ethanol fuel.Read More

E85, EPIC, Ethanol, News, transportation