Fortis Inks $80 mil Wind Energy Hedge

John Davis

FortisEuropean mega-financier, Fortis, has inked a deal to buy 1.1 million megawatt hours of power for the next 10 years from Enel North America. The estimated $80-million deal is seen as a hedge against the price of electricity from natural gas.

This article posted on the CNNMoney.com web site says the power will come the the Snyder Wind Farm in Texas, 63-megawatt project consisting of 21 wind turbines:

Based on an industry estimate of $50 to $80 per megawatt hour, the transaction carries a price of up to $80 million, marking the latest in a big boom in wind projects around the country.

“Wind energy is a rapidly growing generation resource for the U.S. and we’ll continue to pursue hedging transactions not only in renewable power, but in conventional power as well,” said David Duran, managing director at Fortis Merchant & Private Banking, a unit of the Brussels-based financial conglomerate.

Fortis will market the wind-power hedge to financial players, hedge funds, power companies and other energy-investment market participants.

The article goes on to say that the American Wind Energy Association estimates that installation and production of wind generators is up about 25 percent this year alone.

Wind

Earthrace Re-tools for Another Biodiesel Circumnavigation Run

John Davis

EarthraceAt the end of May, the Earthrace… a biodiesel-powered speed boat… had to abandon its record-breaking attempt to circumnavigate the globe. At the time, they were down… but not out!

Captain Peter Bethune says he should be ready for another attempt next March. This story posted on Grainnet.com says, this time, they’ll be better prepared:

The 78-foot boat is currently on a tour of European ports where it is attending boat shows and sailing festivals.

Bethune, a retired oil industry executive, e-mailed BioFuels Journal from Sweden that the first attempt failed due to “under-sourced logistics and not enough spare parts.”

For example, Bethune said, “The biodiesel we were to use in India was made from a low quality fish oil. It arrived three days after our boat docked in Cochin. We ended up losing four days there.

“If we do a second attempt, we will ensure we get someone there a month in advance to determine the fuel quality, and to have it waiting on the dock.”

To set the record, the Earthrace will have to cover 24,000 miles of the ocean in 75 days.

You can read more about the Earthrace by visiting its web site: www.earthrace.net.

Biodiesel

Imperium Opens Biodiesel Plant on Wednesday

John Davis

ImperiumA biodiesel plant that will add 30 percent to the U.S. biodiesel production capacity when it opens will start doing just that when the Imperium Renewables plant at Gray’s Harbor in Washington state starts production on Wednesday.

This article in the Kitsap Sun says the 100-million-gallon-a-year refinery will make biodiesel from canola and soy oils, as well as other crops:

“Obviously we think it’s the wave of the future,” said Martin Tobias, CEO of Seattle-based Imperium Renewables. “We are adding roughly 30 percent to the United States capacity in one fell swoop.”

Last year, national biodiesel production was 250 million gallons, more than triple the production just the year before, according to the Missouri-based National Biodiesel Board. By the end of the year, that number is expected to climb to between 300 million and 350 million gallons.

The refinery has been much-anticipated by the local area that has been suffering the last couple of years when a Weyerhaeuser sawmill closed and nearly 100 people lost their jobs.

We at Domestic Fuel have been anticipating the opening of the plant for sometime as well. A quick search of our posts shows at least a dozen stories we’ve done this year on the progress on the West Coast behemoth of a biodiesel refinery.

Biodiesel

Florida Energy Summit

Cindy Zimmerman

Florida continues to get more serious about increasing its role in alternative energy.

Some major players, including US Sugar and Florida Power and Light, are sponsoring an Alternative Energy Summit on August 27 in Jupiter “to explore the role Florida will play in the dynamic field of alternative energy and how it can redefine the economic landscape.”

MahoneyCongressman Tim Mahoney is the honorary summit chair and the Public Forum Institute is organizing the event. According to PFI, participants in the conference will discuss the alternative energy solutions being developed by Florida’s research institutions; the alternative energy solutions currently available to consumers; the trends and hot areas for investment in alternative energy; and the possible funding opportunities resulting from potential state and federal legislation.

conferences, Ethanol, News

Blue Flint Grand Opening

Cindy Zimmerman

Blue Flint Blue Flint Ethanol, a joint venture between Great River Energy and Headwaters Incorporated, celebrated its grand opening Tuesday for a 50 million gallon per year ethanol biorefinery near Underwood, North Dakota.

Blue FlintUnique to the U.S. ethanol industry, Blue Flint Ethanol is located adjacent to Coal Creek Station, a coal-fired electric facility, and is using the excess steam from Coal Creek to run its ethanol production operations.

Renewable Fuels Association president Bob Dinneen congratulated the company on its grand opening for being ethanol industry visionaries. “Blue Flint Ethanol is a prime example of the kind of ingenuity and resourcefulness that defines the U.S. ethanol industry,” said Dinneen. “By utilizing the excess steam already generated by the electric facility, Blue Flint is replacing the traditional need for natural gas to power its ethanol biorefinery and further enhancing ethanol’s green footprint.”

Energy, Ethanol, Facilities, News, RFA

The Power of Q

Cindy Zimmerman

A naturally occurring microbe could hold the key to converting cellulose into ethanol in a single step, without the need for costly enzymes.

SunEthanolSunEthanol of Amherst, Mass. is commercializing the discovery to produce ethanol from biomass in a simpler and more cost-effective manner.

According to the company website, “SunEthanol has the full genome sequence of this remarkable microbe and is working to push the boundaries of its unique properties and to develop the Q Microbe for full-scale cellulosic ethanol production.”

The Q microbe was discovered by (SunEthanol founder) Dr. Susan Leschine and Tom Warnick from UMass Amherst in soil found near the Quabbin Reservoir in Western MA. It is a naturally occurring anaerobic microbe and is not dangerous.

SunEthanol is working in partnership with some large ethanol industry partners. It is targeting a pilot plant to be in operation in 2009. SunEthanol will supply the cellulosic industry with “Q microbes”, technical know-how and the key components for a cellulosic ethanol bio-reactor platform.

One of those partners is VeraSun Energy, according to a news release.

VeraSun“SunEthanol has unique technology that if proven to be commercially feasible will be a positive step forward for cellulosic ethanol.” said Bill Honnef, VeraSun Senior Vice President, Sales and Marketing. “While we believe corn-based ethanol production will continue to play a key role in our industry long into the future, ethanol from cellulosic feedstocks will complement corn-based ethanol in meeting the growing global demand for renewable fuels. We continue to evaluate technologies that have the potential to efficiently convert cellulose to biofuels.”

Cellulosic, Ethanol, News, Research

Go RVing… Go Green

John Davis

They’re not exactly the most environmentally-friendly mechanisms out there, but recreational vehicles… RVs… are moving to greener fuels.

This article in the Bend (Oregon) Bulletin says while hybrid motors may not be coming up, biodiesel is certainly gaining popularity:

Ty AdamsTy Adams, a 28-year-old freelance journalist and green RV activist from Bozeman, Mont., has spent the past nine months on the road. He’s hit 24 states and put 18,000 miles on his multicolored Monaco, also known as the bioTrekker.

“Every RVer I’ve met is concerned about the future and the environment,” Adams said. “They are touring state parks and getting into nature and places that are enhanced by a pristine environment, so they are very aware.”

Adams says while only about five percent of RVers use biodiesel, 40 percent say they have heard of it. He also believes that manufacturers need to be convinced as well.

Check out Adams’ blog at biotrekker.blogspot.com/.

Biodiesel

Growing Peanuts in Washington State for Biodiesel

John Davis

You probably think of the Deep South, such as Georgia and Alabama, when you think of peanuts, but a farmer and a researcher from Washington State Univesity are looking to grow goobers in the Pacific Northwest to make into biodiesel.

This article in the Seattle (WA) Post Intelligencer says Steve Price’s venture is picking up steam:

Price has been growing dry beans in the area about 30 miles north of Eastern Washington’s Tri-Cities since the 1980s. He planted about 25 acres of peanuts last year, just to see if he could grow them.

Some old-timers in the area also told him a handful of farmers had tried growing peanuts in the area during the 1960s.

“When I started this I thought my background in dry edible beans would be a plus,” Price said. “But I found out I don’t know anything about peanuts.”

Price ran into some problems, such as not having peanut harvesting equipment. In addition, dry bean processing plants didn’t want to handle the peanuts because of the allergy problems. But despite that, he had some success growing the legumes, getting 5,000 pounds an acre… when the national average is only 3,300.

Tim WatersPrice’s initiative impressed Tim Waters, a WSU extension educator based in Pasco. He and another professor for WSU’s crop and soil sciences program began working with Price and helping where they could.

This year, Price replanted some peanuts and Waters and a team at WSU planted some test fields of five different varieties at Columbia Basin College.

“We can do this and study the potential to see if this is something that is feasible for growers so they don’t have to take the risk,” Waters said.

This year’s crop looks even better than last year. And, if you remember my July 31st post, researchers back in Georgia are developing a type of peanut ideal for biodiesel. Hopefully, they’ll share their information with the peanut-biodiesel far off to the north.

Biodiesel

More E-85 for Iowa

Cindy Zimmerman

GMCulverGeneral Motors, Governor Chet Culver and Kum & Go, L.C. today celebrated plans for the addition of 19 new E85 ethanol fueling locations to be opened throughout the state by the end of 2008. The new fueling locations will be promoted by GM as part of a broader, ongoing national GM campaign to boost the use and awareness of ethanol-based E85 fuel in the United States.

Kum & GoAccording to a news release, the announcement was celebrated at the Iowa State Fair during an event presided over by Iowa Governor Chet Culver, GM executives and Kum & Go.

“We know how much our customers care about the environment and we’re proud to offer them the choice for renewable fuels at the pump,” said Kyle Krause, president and CEO, Kum & Go. “Our new sites are helping make E85 ethanol more available to more of our customers throughout the state.”

Car Makers, E85, Ethanol, News

Improving Ethanol Efficiency

Cindy Zimmerman

LSUResearchers at Louisiana State University are among those hard at work to find ways to “make ethanol fuel an efficient reality.”

According to an LSU release, James Spivey, McLaurin Shivers professor of chemical engineering at LSU, and Challa Kumar, group leader of nanofabrication at LSU’s Center for Advanced Microstructures and Devices are working on the project withClemson University and Oak Ridge National Laboratories, with the help of $2.9 million in funding from the U.S. Department of Energy and its cost-sharing partner, Conoco-Phillips.

“We’re working with our project partners to produce ethanol from a coal-derived syngas, a mixture of primarily carbon monoxide and hydrogen. The United States has tremendous reserves of coal, but converting it to affordable, clean fuels is a challenge – one that we are addressing in this DOE-funded project,” said Spivey. “Because ethanol is a liquid, it can be more easily distributed to the end user than gaseous hydrogen. It can be converted into a hydrogen-rich gas at the point of use, such as a fuel cell. The net result is clean energy produced from a domestic resource.”

Energy, Ethanol, News, Research