#Algae Food & Fuel Can Reduce GHG Emissions

Joanna Schroeder

Bentley University research shows algae to hold potential to mitigate greenhouse gas emissions if used as a source of food or fuel. (PRNewsFoto/Bentley University)

Bentley University research shows algae to hold potential to mitigate greenhouse gas emissions if used as a source of food or fuel. (PRNewsFoto/Bentley University)

New research has found that using microalgae to produce food and biofuel can help to reduce greenhouse gas emissions. The study was led by Michael J. Walsh, a research fellow in Bentley University’s Center for Integration of Science and Industry, and found that algal food and fuel coproduction can help to improve both land and water-use efficiency while reducing GHG emissions.

The project, conducted by researchers affiliated with the Marine Algal Industrialization Consortium, found that substitution of conventional crops with algae can substantially reduce the impact of current agricultural practices. These include:

  • Avoiding deforestation and promoting afforestation
  • Enabling emissions reductions from some of the hardest to mitigate emissions sources (deforestation and agriculture)
  • Saving significant amounts of freshwater water by displacing water-hungry crops
  • Enhancing food security by decoupling food production from at-risk agricultural regions

However, the study finds that using algae only for biofuel production will reduce GHG emissions but will not have the same ag offsetting benefits of producing food and fuel. “Thinking about algae as a food product opens new paths for achieving a number of sustainable development goals that are out of reach for algal biofuels,” said Walsh.

The research also looked at possible negative issues associated with using algae to produce food. One drawback, the study argues, is that algae requires a significant amount of unsustainable inputs of chemical fertilizers although this challenge could be offset by creating markets for carbon capture and nutrient recapture from waste water.

Walsh notes that if researchers can overcome these challenges we may see broader benefits. “Algae food holds the potential to open up a significant amount of land to other uses. With the benefit of available land, we can implement more emission reduction technologies such as bioenergy carbon capture and storage (BECCS),” he says. This matters because according to the 5th Assessment Report of the Intergovernmental Panel on Climate Change, if our ability to mitigate emissions through BECCS technology is limited, it’s likely many climate change models will not be able to limit warming to below 2 degrees Celsius (the known target for globally impactful temperature reduction).

advanced biofuels, algae, biomass, Research

When Price is Right FFV Drivers Choose #Ethanol

Joanna Schroeder

When fuel prices are competitive, drivers of flex fuel vehicles (FFV) will fill up with high-ethanol blends such as E85 according to a new article published in Energy Policy. Authors Sébastien Pouliot and, Bruce A. Babcock also found that the recently finalized RFS requirement for 2017 for 15 gallons of conventional biofuels is in fact achievable with current infrastructure and vehicles.

screen-shot-2016-12-05-at-3-53-11-pmLooking at particular metro areas, the study examined actual consumer response to changes in E85 prices. The research determined that E85 use could grow to 1 billion gallons in these metro areas if E85 is priced right – a 20 percent savings on fuel costs per mile. The authors write, “With 14 billion gallons of ethanol consumed as E10, and additional E85 consumption in rural areas, total ethanol consumption at current prices is likely high enough to meet a 15 billion gallon blending target.”

The study area equated to around 50 percent of the total E85 market.

The authors continue,  “The decision by EPA to propose to reduce RFS ethanol mandates in 2014, 2015, and 2016 on the basis that consumer demand for ethanol is insufficient to meet a 15-billion-gallon target was based on EPA’s belief that too few owners of FFVs will switch to E85 if is it attractively priced to save them money and/or that there is insufficient incentive in the market-based RIN trading system to facilitate expansion in the number of stations that sell E85. Our analysis provides EPA and others with improved knowledge of the proportion of urban FFV owners that will buy E85 at different price points. Our results indicate that a significant proportion of FFV owners in metro areas will buy E85 if it is priced to save them money on a cost-per-mile basis. In one metro area that has one E85 station for every 2,070 FFVs, the market share of E85 exceeded 15% when E85 saved flex motorists a small amount of money.”

In response to the study finding, Renewable Fuels Association (RFA) President and CEO Bob Dinneen noted,  “This research provides hard evidence that FFV drivers increasingly choose E85 when it saves them money. This may seem like an obvious conclusion, but some opponents of the RFS—and even EPA, at times—have questioned whether FFV drivers truly buy more E85 when its price falls relative to gasoline. The key takeaway from this study is that we have enough FFVs and E85 pumps already in place to easily satisfy the 15 billion gallon RFS requirement for conventional renewable fuel in 2017. And, more blender pumps are being added daily, which further increases competition and consumer access to lower-carbon, higher-octane flex fuels like E85, E20, and E30. The report serves as even more confirmation that EPA absolutely made the right decision by putting the RFS back on track in 2017.”

biofuels, E85, Ethanol, Ethanol News, RFA

US Government Challenging Abengoa Bankruptcy Plan

Joanna Schroeder

DOE logoKSCB News is reporting that Shell has been outbid for the cellulosic ethanol biorefinery owned by Spain-based Abengoa Bioenergy in Hugoton, Kansas. Synata Bio Inc, who owns the cellulosic ethanol technology formerly owned by Coskata, bid $48.5 million for the shuttered ethanol plant as part of Abengoa’s bankruptcy. In October, Shell put in a bid for $26 million and according to documents from the U.S. Bankruptcy Court for the District of Kansas, Shell remains as the backup bid should there be any issues with the Synata sale. Closing on the purchase is set for December 8, 2016.

This is just one of several ethanol plants purchased from Abengoa as part of its bankruptcy. The two most recent approved purchases include winning bids from Natural Chem Group and Green Plains Inc. and ICM. However, the Wall Street Journal is reporting that the U.S. government is requesting that the bankruptcy plans be put on hold as a means to recoup more than $130 million agencies such as the Department of Energy gave the company to bring the project to fruition. The subsidies were supplied to help the project but are meant to be paid back to the government and the goal of the suit filed by the Department of Justice, DOE and others, is to recoup at least a portion of the funds.

The case is set to be heard in Delaware on December 6, 2016.

biofuels, Ethanol

NBB Welcomes 5th Edition of #Biodiesel Guide

Joanna Schroeder

screen-shot-2016-12-04-at-10-54-17-pmIn conjunction with the U.S. Clean Cities program, the Department of Energy (DOE) has released the fifth edition of its Biodiesel Handling & Use Guide. The publication serves as an educational tool for those who blend, distribute and use biodiesel, and is targeted to fleets, blenders, distributors and anyone involved in related activities. The guide offers basic information on the safe use of biodiesel in engines and boilers, and was designed to help users understand the procedures for handling and using biofuels fuels.

“This guide is an important tool for the industry as we see biodiesel volumes in the marketplace continue to grow,” said Scott Fenwick, technical director at the National Biodiesel Board (NBB). “More American’s are using biodiesel than ever before, and reliable, accurate information is critical for the fuel supply chain all the way down to end users.”

The Biodiesel Handling & Use Guide was authored by the National Renewable Energy Laboratory (NREL), a DOE lab.

advanced biofuels, Biodiesel, Education, NBB

#ExEx16 Helps Create $460 Million in Sales

Cindy Zimmerman

RFA CEO Bob Dinneen and USGC CEO Tom Sleight at 2016 Export Exchange

RFA CEO Bob Dinneen and USGC CEO Tom Sleight at 2016 Export Exchange

The 2016 Export Exchange was successful in achieving its goal of increasing exports of U.S. grain and ethanol co-products, according to officials with the U.S. Grains Council and Renewable Fuels Association.

Buyers and end-users who attended the conference reported sales of approximately 2.6 million metric tons of grains and co-products worth $460 million traded in connection with the event, held Oct. 24-26 in Detroit. That included 924,500 metric tons of corn and 875,000 metric tons of distiller’s dried grains with solubles (DDGS), as well as 25,200 metric tons of corn gluten, 428,000 metric tons of sorghum; and 5,000 metric tons of barley.

“Trade is absolutely critical to U.S. farmers right now, and these sales show that buyers attending Export Exchange 2016 took the buying opportunities very seriously,” said Tom Sleight, president and CEO of the Council. “Putting buyers and sellers together, building and sustaining relationships with our top global grain buyers have been hallmarks of Council activities worldwide. We are thrilled to see how much actual trade was done at the show and in association with it.”

“This conference and these tremendous sales figures show how much of an appetite there is globally for U.S.-produced feed grains and co-products. It’s no surprise that the top two commodities traded during the conference were corn and DDGS, a coproduct of U.S. ethanol production. With a record corn supply anticipated for the 2016/2017 marketing year, exports will continue to be essential as we move forward in a global market,” said RFA President and CEO Bob Dinneen.

More than 200 international buyers and end-users of coarse grains and co-products from more than 35 countries attended the Export Exchange. The event is held every two years and will next be held in 2018.

See stories and photos from the 2016 Export Exchange here.

Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, RFA, RFS, USGC

Hearing Addresses #RFS Management

Cindy Zimmerman

senate-hearingThe Senate Homeland Security & Governmental Affairs Subcommittee on Regulatory Affairs and Federal Management held a hearing yesterday examining two reports by the Government Accountability Office (GAO) on the Renewable Fuel Standard (RFS) released this week. The hearing included testimony from Frank Rusco, GAO Director Natural Resources and Environment and Janet McCabe, EPA Acting Assistant Administrator for Air and Radiation and was chaired by Sen. James Lankford (R-OK), who advocates repealing the RFS.

According to the Renewable Fuels Association (RFA), the GAO reports “incorrectly suggest the RFS is falling short of its goals to support commercialization of advanced and cellulosic biofuels.”

“This hearing and the GAO reports really miss the point. The RFS has been a resounding success by any measure,” said RFA president and CEO Bob Dinneen, who adds that Congress realized in 2007 that it would take some time to get cellulosic biofuel to commercialization by allowing EPA to adjust advanced and cellulosic volume requirements.

Dinneen said advanced biofuel production is now growing dramatically. “Production and use of advanced biofuels has risen from less than 200 million gallons when the original RFS was adopted in 2005 to approximately 4 billion gallons (RINs) in 2016—a 20-fold increase. That’s a remarkable achievement that simply wouldn’t have occurred without the RFS.”

Dinneen also notes that the GAO reports fail to recognize other factors that impeded more rapid growth in advanced and cellulosic biofuel production, including the recession and financial crisis, lengthy delays by EPA in setting annual RFS volume requirements, and uncertainty caused by oil industry lawsuits and repeal efforts.

advanced biofuels, Cellulosic, Ethanol, Ethanol News, Government, RFA, RFS

#Biodiesel Supporters Share Stories on the Hill

Joanna Schroeder

nbb-16-dcMore than 30 biodiesel supporters from multiple states shared their stories and the benefits on biodiesel in the halls of Congress this week.

“We have a great message to share with our elected officials,” said National Biodiesel Board CEO, Donnell Rehagen. “We want our messages and our success story to be top of mind now and when any tax extenders or reform is considered.”

The biodiesel industry representatives visited members of Congress with a call to extend the biodiesel tax incentive and move it from a blender’s tax credit to a producer’s tax credit. The current blender’s credit will expire at the end of this year and proposed legislation in both the House and Senate (HR 5240, S 3188) would adjust the credit to support domestic production over imports.

“Effective federal policy has helped level the playing field for our relatively new product. This is about so much more than a standard or tax code. It’s about real people, making a real difference to bring jobs and economic growth all while supporting clean air and renewable fuel options,” Rehagen explained.

Under the current “blender’s” structure of the incentive, foreign biodiesel imported to the U.S. and blended with petroleum diesel in the U.S. is eligible for the tax incentive. Increasingly, foreign biodiesel producers are taking advantage of the U.S. incentive by shipping their product here. In 2015 alone, some 670 million gallons of biodiesel and renewable diesel were imported to the U.S., making up nearly a third of the U.S. market.

advanced biofuels, Biodiesel, NBB, politics

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1Green Biologics, Inc., the U.S. subsidiary of Green Biologics Ltd., a U.K. industrial biotechnology and renewable chemicals company, has announced that its high purity bio-based n-butanol and acetone have received official certification under the USDA BioPreferred® program. The products are now certified as 100 percent bio-based and are marketed under the BioPure™ brand.
  • Biofuels Digest has reported that Blue Marble Biomaterials will become the first biomaterials company to utilize Regulation A+, a type of equity crowdfunding regulated by the Securities and Exchange Commission, and will offer equity shares to the public. Regulation A+ differs from other popular crowdfunding methods, such as Kickstarter. Under Reg A+, investors buy equity in the company. A natural-biochemical pioneer, Blue Marble intends to use the capital raised through its online public offering to expand production capabilities and research and develop new natural chemicals.
  • The English government is seeking input from the public and stakeholders on proposed changes to the Renewable Transport Fuel Obligation Order. In particular it concerns increases to the obligation level, the appropriate level for the contribution of renewable fuels created from agricultural crops, and increases to the use of advanced renewable fuels.
  • ICSA president Patrick Kent has slammed leaked EU Commission proposals which would undermine previous biofuel policy. The leak is from a new renewable energy plan from the Commission which apparently will slash the target for the crop biofuel component of EU transport fuels from 7% to 3.4% by 2030. According to Kent, this strategy flies in the face of logic. The Commission which was supportive of biofuels has now decided to reverse its position without any scientific basis for so doing. Kent says, “What the Commission is proposing to do will deny tillage farmers access to an important income stream and also puts at risk tens of thousands of jobs across Europe. It will end investor interest in EU biofuels, with a direct knock on effect on the efforts to revive the Irish sugar industry – proposals which have received the direct support of all of the major political parties in Dail Eireann and it will make it harder to achieve EU targets to cut GHG emissions from road traffic.”
Bioenergy Bytes

#Ethanol Industry to EPA: Deny Point of Obligation Change

Joanna Schroeder

screen-shot-2016-12-01-at-9-50-39-amA letter was sent to U.S. Environmental Protection Agency (EPA) Administrator McCarthy yesterday from the ethanol industry, along with some unlikely allies, calling on the EPA to deny the request for a change to the point of obligation for Renewable Fuel Standard (RFS)  compliance.  The letter was signed by Growth Energy, API, RFA, PMAA, Advanced Biofuels Association, NACS, NATSO and SIGMA. The letter states:

Dear Administrator McCarthy,

The undersigned associations represent a significant majority of participants across the United States’ transportation fuels value chain. While each association has an individual, unique position – often conflicting – regarding the broader Renewable Fuel Standard (RFS) program, we write to express our unified position in opposition to efforts by petitioners to move the point of obligation for RFS compliance. It is unprecedented for all of these undersigned groups to unite in a single letter to express a uniformly held position.

Each of the undersigned associations strongly supports the Environmental Protection Agency’s (EPA) proposed denial of petitions for a rulemaking to change the point of obligation under the RFS. There is no sound public policy rationale for moving the point of obligation and further, such a change would add complexity and uncertainty to the current RFS program.

We urge EPA to finalize its conclusion and deny the petitions to move the point of obligation.

EPA, Ethanol, Growth Energy, RFA, RFS

Should EPA Increase Biofuels Use?

Jamie Johansen

zp-nh1Our latest ZimmPoll asked the question, “What are you most thankful for this year?”

Family, friends, food and freedom…no doubt the simple majority shined in our Thanksgiving poll.

Here are the poll results:

  • Family – 13%
  • Friends – 3%
  • Food – 0%
  • Freedom – 0%
  • All of the above – 80%
  • Other – 3%

Our new ZimmPoll is live and asks the question, Should EPA increase biofuels use?

EPA set final levels for biofuels use in 2017 under the Renewable Fuel Standard (RFS) last week that are in line with the 2007 Energy Independence and Security Act, calling for the maximum 15 million gallons of conventional ethanol for the first time and increasing volumes for biomass-based biodiesel. What’s your reaction to that?

ZimmPoll