$8 Million in Energy Grants

Cindy Zimmerman

DOEUSDAThe U.S. Departments of Agriculture and Energy have jointly selected 11 biobased fuels research projects to receive $8.3 million in funding grants.

According to a USDA release, the projects will include “looking into new ways to develop cordgrass, rice and switchgrass in renewable energy sources.”

Grant recipients include:
* University of Minnesota, $715,000
* South Dakota State University, $420,000
* Mississippi State University, $1,300,000
* University of Georgia, $400,000
* Virginia Polytechnic Institute and State University, $1,200,000
* University of Florida, $750,000
* University of Delaware, $600,000
* USDA-ARS Western Regional Research Center (Albany, CA), $600,000
* USDA-ARS Western Regional Research Center (Albany, CA), $600,000
* USDA-ARS (Cornell University), $700,000
* Oak Ridge National Laboratory, $1,040,000

Details on the bioenergy projects can be found here.

Biodiesel, Cellulosic, Energy, Ethanol, Government, News, Research

Imperium, Solazyme Ink Biodiesel Deal

John Davis

ImperiumBiodiesel giant Imperium Renewable and algae-to-oil producer Solazyme, Inc. have reached a deal that will have Solazyme producing oil from microbes it developed and providing the oil to Imperium to make into biodiesel.

From a company press release:

SolazymeHarrison Dillon, Solazyme’s Chief Executive Officer commented: “Imperium has publicly expressed interest in the opportunity for algal derived biodiesel for some time and we are pleased to work with them to make this a reality. This agreement not only demonstrates Imperium’s vision to seek out new and innovative sources of biodiesel feedstock but it also provides validation of demand for alternative sources of biodiesel feedstock as well as for our technology. Imperium’s talented team and excellent technology made them an obvious choice to work with.”

Company officials say algae-producing biodiesel is set to be a big grower in the feedstock arena. You might remember that Imperium is set to open one of the biggest biodiesel plants in the country near Seattle.

Biodiesel

Americans Get EU Perspective on Biofuels

John Davis

German Marshall FundSeveral American journalists are touring Europe, courtesy of the German Marshall Fund of the United States, a program that promotes cooperation between the United States and Europe on domestic and international trade policies.

Dan & MissyFrom this post on FarmPolicy.com, Missy Shelton Belote of KSMU-FM, Springfield, Missouri’s public radio station; Todd Gleason, from the University of Illinois and WILL AM-580 public radio; Dan Morgan, a Special Correspondent with The Washington Post and a Transatlantic Fellow with the German Marshall Fund; and Keith Good of FarmPolicy.com are getting a perspective on Europe’s farm policy, sometimes where the rubber meets the road, and, of course, biofuels.

Ursula Soyez, a Program Officer with the German Marshall Fund of the United States, talked with some her guests about their views after seeing biofuels operations in The Netherlands (click here for the podcast):

Ursula & ToddAfter seeing the bioethanol plant, Gleason took note of its smaller size compared to its American counterparts, “The plant produced about 35 million liters (10 million gallons) of fuel-grade ethanol. (In the U.S.), A 10-million gallon ethanol plant could not maintain any efficiency, but they also don’t have the input.” He added how surprised he was how efficient that small of operation could be.

Morgan noted there are some other differences between the European markets and the U.S. “In Europe ethanol is rather a small player. The big player is diesel.” He says that makes biodiesel the big push in Europe.

Once again, click here to hear more from that particular podcast.

Biodiesel, Ethanol

Alternative Energy for Ogden

Cindy Zimmerman

Alt EnergyAlternative Energy Sources Inc. has received the final go-ahead for its planned 110-million-gallon ethanol plant near Ogden, Iowa.

According to a news release, the Kansas City-based energy company said that the Iowa Department of Natural Resources approved an operational air permit for the plant so all permitting is now complete.

The Iowa Department of Economic Development has granted Alternative Energy Sources about $30 million in tax credits and tax abatement for the project.

The company also plans to build ethanol plants in Greenville and Kankakee, Ill.

Ethanol, Facilities, News

Green Plains Update

Cindy Zimmerman

GPREGreen Plains Renewable Energy officials say construction on both of their ethanol plants is progressing as planned.

GPRE’s 50 million gallons per year ethanol production facility located in Shenandoah, Iowa is scheduled to commence its first grind in less than 60 days. Fagen, Inc. of Granite Falls, MN is building the plant and construction on the plant is progressing rapidly.

CEO Wayne Hoovestol says the company’s second plant is being built in Superior, Iowa.

“Construction on the Superior Plant is progressing nicely and is on schedule. Once the Superior Plant is completed, which we anticipate will be sometime near the end of this year, we believe we will have in excess of 100 million gallons per year of ethanol production.”

Ethanol, Facilities, News

McCain’s Changing Views on Ethanol

John Davis

Sen. John McCain in IowaRepublican presidential contender Sen. John McCain of Arizona seems to be changing his views on ethanol. This United Press International story explains the switch seems to come down to two words: Iowa caucus.

During the 2000 presidential campaign, Sen. John McCain, R-Ariz., skipped the Iowa caucuses, perhaps sensing that, among other things, his opposition to ethanol subsidies would not go over well in a corn-growing state like Iowa.

Seven years later, he is crisscrossing the country again to win support for his bid to become the Republican presidential nominee, and this time his route includes stops in Iowa.

McCain’s rhetoric about ethanol has changed, which might assuage some Iowans, but he says his opposition to subsidies for ethanol and other agricultural products remains the same.

“We need to increase our use of ethanol and all kinds of alternative fuels,” McCain said at a speech in May.

But McCain stops short of endorsing subsidies… sort of:

Jerry Taylor, an analyst at the libertarian Cato Institute in Washington, says McCain’s newfound interest in ethanol is catering to a special-interest group — Iowa farmers — who might help him win that state’s pivotal caucus.

“The old John McCain opposed ethanol subsidies. The new John McCain will apparently embrace any idea to win the White House,” Taylor wrote on Cato’s weblog.

The article points out that in a speech in Virginia in April McCain said that while he would encourage the growth of ethanol infrastructure, he still won’t sign off on government subsidies.

Ethanol, Government

Soros Warns About Ethanol Tariffs

John Davis

SorosBillionaire investor George Soros is warning that U.S. and European tariffs on Brazilian ethanol might keep that country from reaching its potential in alternative fuel production.

According to this story posted on Bloomberg.com, Soros, who is a major investor in Brazil’s ethanol industry, needs bigger markets to justify the expansion and building of new distilleries there:

“Unless the markets in the rest of the world are opened up, you probably have overproduction coming online,” Soros told reporters today in Sao Paulo, where he was attending an ethanol seminar. “You’ve got prohibitive tariffs both in the U.S. and Europe.”

Ethanol investment in Brazil has soared in recent years as gasoline prices rose to records and demand increased for alternative fuels in the U.S., Europe and Asia. The U.S., which makes ethanol from corn, imposes an import tariff of 54 cents a gallon on Brazilian supplies. The European Union has a 19-cent levy.

The tariffs discourage Brazilian mills from exporting the record ethanol output this year, Soros said.

Of course, American ethanol and corn producers point out this country doesn’t need to switch from one foreign import, oil, to another one, Brazilian ethanol.

But it’s not just American opposition that is stalling the Brazilians:

Environmental rules will prevent Brazil from reaching a potential 10-fold increase in output, said Soros, who became the main shareholder last year in Adeco Agropecuaria Brasil Ltda., a Brazilian sugar and ethanol producer.

Brazil’s currency also is overvalued and interest rates are too high, discouraging investments, he said.

Soros does go on to point out that anti-American Venezuelan President Hugo Chavez is also banking on Brazilian and American ethanol production falling flat… keeping the U.S. dependant on Venezuela’s oil.

Ethanol, International

WindPower 2007 Underway in LA

John Davis

windpower1.JPGAttendees to the American Wind Energy Association’s annual conference going on this week in Los Angeles heard that their industry faces quite a challenge to go from the current 1% of U.S. energy supplies to President Bush’s goal of 20% by 2030. In fact, it could be a half-billion-dollar challenge.

This article from Reuters says delegates are trying to figure out how to reach that goal:

That would mean by 2030 there will have to be 325 gigawatts of installed wind turbines in the United States, said Michael Robinson of the National Renewable Energy Laboratory.

Current wind turbines can make between 1.5 and 3 megawatts per tower. A large natural gas or coal-fired power unit is often 400 megawatts and larger, while only five U.S. wind farms now have more than 260 megawatts of installed capacity.

“From this vantage point, it looks almost impossible,” said Robert Lukefahr, president of BP Alternative Energy North America. “But you have to remember that we’ve made big leaps before.”

Lukefahr said over the next 15 years wind power is the least costly and easiest to develop alternative to coal and natural gas. Beyond that, Lukefahr said he could not be sure what will be in store for alternative energy.

Indeed. Consider the fact that wind power grew in the U.S. by 20 percent last year to light up the equivilant of three million homes… and it’s expected to take a similar leap again this year.

About 7,000 people are attending this year’s conference… and that’s up from 5,000 last year and only about 1,000 in 2001.

Wind

Cold Crushing Explored for Biodiesel

John Davis

BioExxToronto, Canada-based Bio-Extraction Inc. is joining with BioNex Energy Corp to develop and test, and then prove the commercial viability of using a cold crushing technology to more efficiently extract oils from seeds for use in a BEC biodiesel refinery in the works in western Canada.

Check out this story from Renewable Energy Access.com:

BEC is a developmental stage company that intends to use cold crushing technology in its plant as a first-stage process for removal of oil from canola and other high oil-content crops; BioExx would provide the second-stage process.

The first stage of oil removal will remove approximately 80% of the oil from the biomass while maintaining a consistently low temperature. In the second and final stage of oil removal, the process will remove up to 100% of the remaining oil while at the same time maintaining the protein value originally contained in the biomass.

The story says the technology could allow a greater amount of oil to be extracted from feedstocks while preserving the food value content of the original material. That could make biodiesel production more economical and end some of the debate of fuel taking up food sources.

Biodiesel

Caltrans Considering Biodiesel

John Davis

CaltransAfter testing B20 biodiesel for nearly the last six months, the California Department of Transportation could be switching some of its vehicles to the cleaner fuel.

According to this story in the Central Valley Business Times, up to 4,500 diesel-burners could make the switch later this summer:

Caltrans uses about three million gallons of regular diesel from its fuel sites annually. A switchover to B20 would decrease its consumption of petroleum by as much as 600,000 gallons yearly, the agency says.

Biodiesel is seen as viable because the infrastructure is already in place. Caltrans has about 230 diesel fuel sites statewide and only minor, relatively inexpensive modifications would need to be made to these facilities, a spokesman says.

The article goes on to say that most of the biodiesel being tested comes recycled cooking oil.

Biodiesel