Investment Banks Bank on Alternative Energy

John Davis

A growth sector focused investment bank is hosting its annual Alternative Energy Conference today at the Mandarin Oriental Hotel in New York. The Thomas Weisel Partners one-day event will focus on the opportunities and challenges of the Alternative Energy industry for 2008 and the future.

The conference will showcase presentations from over 30 established and emerging public and private companies, including those engaged in alternative fuels, energy efficiency, fuel cells, smart grid technologies, solar power, and wind power.

“Rising energy prices, political uncertainty in oil producing regions and increased environmental standards and regulations are creating tremendous potential for alternative energy solutions,” said Keith Gay, Head of TWP’s Research Group. “We believe the management teams will provide investors with a unique look into various sectors of the alternative energy industry and a chance to find out what is on the horizon for 2008.”

It looks like alternative energy is generating large fiscal interest.

Biodiesel, biomass, conferences, E85, Energy, Ethanol, Hydrogen, News, Solar, Wind

PG&E Mixes Solar with Biofuels

John Davis

Pacific Gas and Electric Company says adding renewable solar hybrid power to its energy mix will mean “around-the-clock” clean energy production. PG&E has entered into two contracts with San Joaquin Solar Technology that are meant to combine solar power and biofuel. The contracts equate to 106.8 megawatts of solar thermal-biofuel hybrid power.

Located near Coalinga, CA, the solar-biofuel projects will deliver a total of 700 gigawatt hours (GWh) annually of renewable electricity to PG&E customers throughout northern and central California.

“This hybrid technology combines two renewable resources abundant in California — solar energy and biofuel from the Central Valley,” said Fong Wan, vice president of energy procurement at PG&E. “We will continue to add these types of innovative renewable energy sources to our power mix as we work to provide our customers with some of the cleanest energy in the nation and meet our state’s climate change goals.”

The renewable hybrid projects combine Luz solar thermal trough technology and steam turbines powered by biomass fuel to produce hybrid solar-biofuel renewable electricity. The incorporation of biofuel increases the overall production of renewable power by allowing for around-the-clock production of clean energy, even at night or when sunlight is not at its strongest. Each hybrid project will require 250,000 tons of biofuel annually, to be supplied from a combination of locally-produced agricultural wastes, green wastes and livestock manure. These projects are expected to begin operation in 2011.

San Joaquin Solar LLC is a subsidiary of Martifer Renewables Electricity LLC.

Energy, Facilities, Production, Solar

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