US-EU Biodiesel War About to Heat Up

John Davis

The fight between American and European biodiesel makers is heating up. European biodiesel producers are urging the European Union to hit U.S. biodiesel with punitive fines as the EU is set to open anti-dumping and anti-subsidy investigations into imports of the green fuel from the United States.

This story from AFP says this comes after the European Commission started looking into complaints that the US was hurting Europe’s biodiesel industry:

The European Biodiesel Board called for the investigation in April, complaining that the European market was being flooded with US exports of a 99-percent biodiesel blend, which can receive a subsidy of 300 dollars (192 euros) per tonne.

On top of the US aid, exports of the so-called B99 blend are also eligible for a subsidy in Europe as well.

The lobby said the subsidies were squeezing European producers’ profit margins, putting most of them out of business and leaving capacity idle.

But American biodiesel producers aren’t taking this lying down. Manning Feraci, the National Biodiesel Board’s Vice President of Federal Affairs, has responded:

“The allegations of harm leveled by the European biodiesel industry in these trade complaints are baseless. It is disingenuous and hypocritical that several of the European biodiesel companies that joined in the complaints are the very entities actively involved in the trade of U.S. biodiesel.

“The European biodiesel industry is not being harmed by U.S. competition. High feedstock costs, changes to EU member policies – and in some cases – poor business practices are the true issues facing European biodiesel producers. It is unfortunate that the European Biodiesel Board (EBB) has found it politically expedient to blame the U.S. biodiesel industry instead of focusing its efforts on the true challenges facing its membership.

Feraci goes on to characterize the European reaction as a “protectionist ploy.”

Biodiesel, International

Nation’s First Intrastate Wind Project Public Offering

John Davis

Minnesota-based High Country Energy, along with its managing company National Wind, has made the nation’s first intrastate public offering of a wind project’s securities… a move that is expected to help local, rural communities invest in the green energy source.

This company press release says High Country Energy is using Delphi Financial Corp., an investment banking firm specializing in raising capital for community-based renewable energy projects, as the placement agent for the offering. It’s expected to help High Country Energy, to build more than 300 megawatts of community-owned wind farms in Dodge, Olmsted and Mower Counties, Minnesota:

“This offering can be made available to interested investors throughout the state of Minnesota, however it was very important to all of us in High Country to ensure that landowners within the project footprint have the first opportunity to invest,” says Barry Rogne, Chairman of the High Country Energy board of advisors. “This offering is consistent with our company’s goals of sharing ownership with a large cross section of our community.”

Investing in renewable energy capacity is becoming a worldwide trend, according to the World Watch Institute. In 2007, the Institute reported 36 billion dollars of worldwide investment in wind energy alone.

“An intrastate public offering is a way the local, rural communities can become a part of this trend. In comparison to a private placement offering, which is typical in the renewable energy industry, this intrastate public offering will allow us to offer investment opportunities to a greater number of people, as long as they are residents of Minnesota,” says Ryan Pelstring, Vice President of Capital Markets, Delphi Financial Corp.

Wind

Ethanol is “Ugly Baby”

Cindy Zimmerman

Ethanol is “an ugly baby but it’s ours and it will move cars,” according to billionaire oilman T. Boone Pickens.

T. Boone PickensSpeaking at the Oil and Gas Investor’s Energy Capital Forum in Houston Tuesday, Boone emphasized that he prefers the less-than-perfect fuel over imported oil because there is “no question” that America must embrace alternate energy sources to alleviate the $700-billion transfer of wealth out of the country to oil imports.

Pickens says the United States is having an energy crisis and that should be the top campaign issue in the presidential election. “Energy is not a debate; it’s a crisis for this country,” Pickens said. “We cannot continue down the path were on. It’s that desperate.”

Pickens said he plans to elevate the issue into this year’s presidential election campaign through a series of television ads talking about energy.

He noted that the country currently spends $700 billion annually to import oil and that could increase to $10 trillion annually within the next decade unless something changes.

Energy, Ethanol, News

DOE to Test Ford Escape Hybrid FFV

FordFord Motor Company is providing an Escape Plug-in Hybrid, which can run on gasoline or E85, to the Department of Energy (DOE) as a testing vehicle. As partnership with Southern California Edison and the Electric Power Research Institute in California, DOE will study the real world activity of this new science.

“Plug-in hybrid technology holds great promise to reduce the nation’s dependence on petroleum and reduce CO² emissions related to climate change, both significant issues for America,” said Mark Fields, President of the Americas, Ford Motor Company. “As a leader in both hybrid and flexible fuel technology, Ford is well positioned to bring the two together in a plug-in vehicle.”

Ford notes that the FFV Hybrid Escape will be able to reach 50 miles per gallon on the highway with E85 and 88 miles per gallon in the city. This should omit about 60 percent less carbon dioxide than when using unleaded gasoline.

“We are moving from an independent set of solutions to an integrated future. With plug-in hybrids, the automotive and utility industries are connected by a common fuel with the potential to significantly change our transportation and energy future,” said Nancy Gioia, director of Ford’s Sustainable Mobility Technologies and Hybrid Vehicle Programs.

The vehicle is one of 20 that is in this type of testing for Ford.

Car Makers, E85, Ethanol, Flex Fuel Vehicles, News

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