Pacific Ethanol to Install 5 MW Solar Energy System

Lizzy Schultz

unknown-2 Pacific Ethanol, Inc. has announced the purchase and installment plans for a new 5 megawatt (MW) solar photovoltaic (PV) power system at its Madera, California biorefinery that produces ethanol, wet distiller grains and corn oil.

The solar plant will be located adjacent to the Pacific Ethanol industrial facility, which currently sits on 137 acres in Madera County, California. The 5 MW solar PV system is projected to reduce the Madera facility’s annual utility costs by over $1 million and is expected to be cash flow positive from year one. The system also qualifies for the Energy Investment Tax Credit.

“The integration of solar power at our Madera plant underscores our commitment to optimize our plant assets, lower the carbon intensity of our ethanol and reduce our operating costs,” says Neil Koehler, president and CEO of Pacific Ethanol. “We are proud to build the first ever commercial solar electricity system at a U.S. ethanol plant. Pending the completion of interconnection agreements with our local utility, Pacific Gas & Electric Co., we expect to begin operating the solar PV system at full capacity in early 2018.”

The system will be designed and installed by Borrego Solar, and $10 million of the project cost will be financed by CleanFund, which provides capital for projects in the renewable energy industry using the Property Assessed Clean Energy (PACE) financing framework.

“Pacific Ethanol represents the new generation of fuel companies — low carbon fuel production powered by zero carbon energy,” says Mike Hall, CEO of Borrego Solar. “This will be one of the largest single-site net metered projects in PG&E territory. Historically these types of projects were limited to a single megawatt, but given the recent CPUC NEM 2.0 ruling, large energy users are now able to go above that threshold and offset a significantly larger portion of their overall usage. In addition, by financing this project through PACE, Pacific Ethanol is able to retain full ownership of the system from day one and capture the tax incentives afforded to solar system owners.”

Ag group, Clean Energy, Ethanol, Facilities, Solar

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1Research and Markets has announced the addition of the “Global Bio-fuels Market 2016-2020” report to their offering. The report forecasts the global biofuels market to grow at a CAGR of 5.87% during the period 2016-2020. The report covers the present scenario and the growth prospects of the global biofuels market for 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the top four vendors operating in the market.
  • Air Products has installed a hydrogen fueling station dispensing unit and a 9,000 gallon hydrogen tank, along with its hydrogen compression and storage technologies for Stark Area Regional Transit Authority (SARTA) in Canton, Ohio. The company will deliver liquid hydrogen to the site from its hydrogen production facility in Sarnia, Ontario (Canada). The 350-bar hydrogen fueling station will have the capacity for future expansion. SARTA will begin fueling buses next month and plans to grow its fleet to 10 buses over the next two years.
  • The owner and manager of a New Jersey feedstock collector and processor pleaded guilty to conspiracy and obstruction for his role in a scheme that generated over $6 million in fraudulent tax credits and the United States Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) connected to the purported production of biodiesel fuel. Malek Jalal, 52, pleaded guilty before United States District Magistrate Judge Norah McCann King for the Southern District of Ohio, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, Acting United States Attorney Benjamin C.
  • Nel Hydrogen Solutions, a division of Nel ASA, has been awarded a contract by SIA Hydrogenis, a leading hydrogen project developer in Latvia, for the delivery of the new dual capability H2Station®, which offers a combined hydrogen fueling solution for cars and buses in Riga.
Bioenergy Bytes

GROWMARK to Purchase Suncor’s Share of UPI

Joanna Schroeder

growmarkGROWMARK will be purchasing Suncor’s assets in Ontario, Canada-based UPI, which provides energy products, including propane, throughout Ontario. As part of the agreement, GROWMARK will purchase Suncor’s 50 percent interest in UPI. Once complete, UPI will be 100 percent owned by GROWMARK. The transaction is subject to conditions including regulatory approvals and terms were not disclosed.

“The agreement aligns with GROWMARK’s focus on growing our petroleum business in Ontario,” said Kevin Carroll, vice president, energy and logistics. “We have had an outstanding partnership with Suncor for the past 20 years, and we are confident this will facilitate the continued success of our energy business in Ontario well into the future.”

Suncor and GROWMARK have also entered into long-term supply agreements for GROWMARK’s petroleum needs in Ontario.

Alternative energy, GROWMARK, Propane

Chevron, ISU Partner on Advanced Biofuel Project

Joanna Schroeder

Iowa State BioCentury Research Farm has entered into a joint project with Chervon, U.S.A. University engineers to develop a pilot plant to develop and demonstrate solvent liquefaction, an advanced biorenewables technology. The technology converts biomass into a bio-oil that can then be processed into biofuels or biochemicals and biochar, a fertilizer that has the ability to enrich soil. Iowa State University (ISU) obtained a $3.5 million grant from the U.S. DOE’s Biomass Research and Development Initiative.

Lysle Whitmer, Ryan Smith and Martin Haverly, left to right, led the development of a pilot plant as part of a joint biofuels project with Chevron U.S.A. Larger photo. Photos by Christopher Gannon.

Lysle Whitmer, Ryan Smith and Martin Haverly, left to right, led the development of a pilot plant as part of a joint biofuels project with Chevron U.S.A. Larger photo. Photos by Christopher Gannon.

The pilot includes a bio-oil production line that includes a 55-gallon solvent tank attached to a twin-screw extruder that mixes, chops, heats and pressurizes that is attached to a reactor. Also included in the mix are product separators and a solvent recycling system.

“This is the culmination of everything we’ve learned about building pilot plants in the past 10 years,” said Lysle Whitmer, senior thermochemical research engineer for the Institute. “This is really a gem that represents everything we’ve learned thus far.”

The project actually began in 2013 when Chevron moved its $1.4 million Small Continuous Liquefaction Unit from Houston to the research farm for the Institute to assist in converting the plant to continuous production. In addition, Chevron was looking for a system to be built to recycle the solvent back into the production process.

Taylor Schulz analyzes the bio-oil and biochar produced by the pilot plant. Photo credit: Christopher Gannon.

“Our modular approach to the plant design allowed for a fair amount of prototyping and proof-of-concept experiments along the way,” explained Martin Haverly, a doctoral student in mechanical engineering and the lead design engineer for the project. “The system is a blend of commercially available products and custom solutions, all tied together at an industrially relevant scale. “All of these efforts helped us end up where we are now, with a safe and functioning pilot plant.”

Robert Brown, director of the Institute noted that the plant functions similar to a mini commercial system. One of the challenges of the pilot plant was to ensure all the steps worked together and operated in harmony. While elements of the system existed, the research team is now working on putting them all together. The engineers have now demonstrated the viability of every one of the pilot plant’s operations but they are still working to efficiently and simultaneously run all the operations. The initial result is a process that produces a bio-oil from wood chips that is low in oxygen and therefore more stable than other bio-oils. Next steps may include working with new feedstocks to create high-value, biorenewable chemicals.

advanced biofuels, biochemicals, Research

ePure Reports #Ethanol GHG Savings Increasing

Joanna Schroeder

screen-shot-2016-09-27-at-9-57-35-amAccording to new data reported by the European renewable ethanol association (ePURE), ethanol’s direct greenhouse gas emissions (GHG) savings in Europe has increased from 59 percent in 2014 to 64 percent in 2015. The European renewable ethanol industry – Annual statistics report 2016 also found that 99 percent of the agricultural crops and residues used to produce European ethanol in 2015 were grown in Europe. This, says ePURE, has provided growers with a needed source of income at a time when the EU agriculture sector is facing difficult pricing constraints. The study was audited by Swiss company Copartner.

“This audited statistical report reinforces yet again European ethanol’s strong credentials as a low carbon transport fuel,” said Robert Wright, secretary-general of ePURE. “However, despite ethanol’s 64% certified savings and confirmed low land use impacts, our sector faces the bizarre situation that the European Commission seems intent on phasing out readily available conventional ethanol. The Commission instead needs to promote, not hamper, all available low carbon transport solutions, including ethanol, if they are to succeed in their fight to reduce transport emissions.”

The Annual statistic report 2016 also found:

  • Since the EU biofuels policy was introduced in 2009, EU ethanol’s average savings increased by 28 percent from 52 percent in 2009 to 64 percent in 2015.
  • Ethanol production remained steady in 2015 with 5.8 billion litres produced. Of this, 78 percent of the ethanol was sold in the biofuel market.
  • European ethanol producers produced 8.8 million tons of co-products in 2015, of which 84 percent was DDGs.
  • In 2015, 37 percent of the ethanol produced was from corn, followed by wheat at 33 percent, sugars  at 20 percent with the remaining feedstocks consisting of other cereals and cellulosic material, wastes and residues.
biofuels, Ethanol, International

Global Bioenergies Leads Wood Residue to Energy Team

Joanna Schroeder

A new team has been created, led by Global Bioenergies, to produce fuel from forest residues. The first step of the partnership, that also includes Preem, Sekab and Sveaskog, will be to conduct a conceptual scope study for building the first biorefinery in Sweden. Back in April the consortium announced its partnership with partial financial support from the Swedish Energy Agency. Since then, the team has selected the Isobutene process developed by Global Bioenergies for the conversion of residue wood derived sugars into a high performance bioethanol. Going forward, the project will be carried out as part of Sweden’s “Bio-based Gasoline Project.”

© Plsa | Dreamstime Stock Photos

© Plsa | Dreamstime Stock Photos

“Sveaskog’s priority is to develop new uses for forest biomass,” noted Ann-Britt Edfast, R&D Manager at Sveaskog. “Our assessment is that forest resources will play a crucial role in the green transition to a fossil-free society. The value chain developed here is of particular interest for Sveaskog since it can use a range of forestry derived by-products and targets a drop-in molecule.”

Over the next several months, the team will study various plant scenarios that will enable the profitable conversion of forestry residues and products into bio-isooctane, a 100-octane rated fuel produced from bio-isobutene. The well to wheel project will include Sveaskog’s foresty activities; the company owns and manages 14 percent of the 30 million hectares of forest land in Sweden. The supply chain will also include Sekab’s CelluAPP(R) biomass to sugar conversion process, Global Bioenergies’ wood-sugars to Isobutene process and Preem’s gasoline production processes, blending and retailing activities.

The project will allow Sekab to showcase its CelluAPP (R) technology. “The Bio-Based Gasoline Project will enable the large scale commercial deployment of our CelluAPP(R) wood-conversion technology and will demonstrate how it can open the forestry sector to the vast new array of markets and in the first instance to high performance bio-based gasoline,” explained Thore Lindgren, vice president of Sekab E-Technology AB.

Global Bioenergies’ technology will also play a vital role in the value chain. Marc Delcourt, CEO of Global Bioenergies further said of the wood to energy project, “The diversification of feedstock has always been central to the development of our Isobutene technology as it opens new territories and markets to our process. Following a first plant project in France based on sugar-beet we are delighted to now work at its deployment downstream of the Swedish forestry industry”.

Stefan Nystrom, Business Development Engineer at Preem added, “The ability to produce drop-in, high performance bio-based gasoline in Sweden from residuals of the Swedish forestry is a central brick in our strategy and commitment to the environment. This partnership offers an entirely new technical solution to produce well known, high performance molecules such as isooctane and to establish a new bridge between our country’s forest and our consumers need for sustainable energy sources.”

advanced biofuels, Cellulosic, Ethanol, Waste-to-Energy

#Ethanol Groups Submit CAFE Comments

Joanna Schroeder

Comments regarding the goals of the CAFE-GHG standards were due yesterday to the U.S. Environmental Protection Agency (EPA) and ethanol organizations made their voices heard.

ACE logoComments submitted by the American Coalition for Ethanol (ACE) call for a federal pathway to be established to assist automakers to meet future mileage and environmental standards with higher blends of ethanol. Blends such as E30 would provide automakers with more octane. The comments were also submitted to the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and the California Air Resources Board (CARB).

“ACE has been in dialogue with automakers, agricultural organizations, and government researchers to develop strategies and action plans to accelerate the transition of North American transportation fuels to higher-octane, lower-carbon renewable fuels such as ethanol,” said ACE Executive Vice President Brian Jennings. “If the agencies hope to fulfill the ambitious goals of the CAFE-GHG program going forward, a regulatory framework needs to be initiated immediately for lower-carbon, higher-octane fuel such as ethanol.”

growth-energy-logo1Growth Energy’s comments focused on the benefits of using high octane mid-level ethanol blends in future optimized engines, such as increased vehicle efficiency, increased acceleration, and significant reductions in greenhouse gas emissions.

“Our comments highlight the wealth of available research that outlines the vital role that affordable, higher blends of ethanol can play in helping automakers achieve increasing future GHG and CAFÉ standards,” said Growth Energy Director of Regulatory Affairs Chris Bliley. “Furthermore, we encourage the agencies involved in this review to not only acknowledge the important role higher blends can play, but ensure they are part of the larger goal in achieving greater efficiency and a reduction in harmful emissions.”

rfalogo1Comments from the Renewable Fuels Association (RFA) stress how high octane, low carbon (HOLC) fuels can play an important role in helping automakers comply with increasingly stringent fuel economy and greenhouse gas emission standards in the 2022–2025 time frame.

“This is an important process because it will determine the path forward for future energy efficiency and environmental goals,” said RFA President and CEO Bob Dinneen. “EPA has correctly identified technologies that will effectively improve energy efficiency and reduce greenhouse gases. But the agency has failed to appropriately consider the fuels that will enable those technologies. That is an omission that must be addressed moving forward if future vehicles can in fact help us address climate change without backsliding on other critical air quality and public health priorities. We look forward to working with EPA and NHTSA as this process continues,” he added.

The written comments were submitted in response to the draft of the Technical Assessment Report (TAR) of the 2022-2025 model year CAFE standards. The organizations listed above are conducting a Mid-term Evaluation (MTE) of the program, as a means of determining if the standards set in 2012 can in fact be meet in 2025.

ACE, biofuels, EPA, Ethanol, Growth Energy, Octane

Sugarcane Producer ASSOBARI Earns RSB Cert

Joanna Schroeder

Sugarcane producer ASSOBARI (Associação dos Fornecedores de Cana da Região de Bariri) has earned the Roundtable on Sustainable Biomaterials (RSB) certification – the first sugarcane producer in Brazil to do so. The certification is for the production of sugarcane specifically for 62 farmers and nearly 1,800 hectares of sugarcane plantations.

screen-shot-2016-09-26-at-10-09-48-am“RSB certification is the recognition that farmers in the Bariri region produce sugarcane in a sustainable manner, in accordance with global standards,” said Acácio Masson Filho, Assobari’s President. “RSB is an important organization to help us access the market for multi-products from sugar cane. Through RSB certification, Assobari farmers were able to implement tools to assess their potential environmental and social impacts and to carry out stakeholder consultations. The certification process also helped Assobari prepare internal procedures for chain of custody and learn how sugar cane producers can be linked to the biomaterials market.”

According to RSB, its certification is recognized by NGOs as the “most comprehensive and ambitious” biomaterials sustainability certification program in the world.

Rolf Hogan, RSB’s Executive Director, added, “RSB allows farmers and producers associations to earn their own certificates and be recognized as sustainable producers, and to be linked to sustainable supply chains which is key for many farmers. Also, sugar cane is one of the most important biofuel and biomaterial feedstocks for Brazil, so it is especially exciting to now have Assobari providing RSB certified materials for the industry. This movement forward indicates that RSB standards are applicable to the context of sugar cane in the region and provides a framework to implement sustainable practices by farmers associations.”

This certification was made possible by the Boeing Corporate Citizenship Program.

biofuels, biomaterials

Siouxland Ethanol Joins RFA

Joanna Schroeder

Siouxland Ethanol has become the newest member of the Renewable Fuels Association (RFA). The ethanol plant is located near Jackson, Nebraska and began production in May of 2007. Today the biorefinery processes 24 million bushels of corn per year into 70 million gallons of ethanol per year and also produces multiple co-products including 2,000 tons of corn oil and 175,000 tons of distillers grains (DDGs). Siouxland Ethanol is also amidst an expansion project that when complete will increase yearly ethanol production by 15 percent.

siouxland-ethanol-logo“The Renewable Fuels Association is a tireless advocate for the ethanol industry and we are pleased to join its membership,” said Pam Miller, director of industry and investor relations and board chair at Siouxland Ethanol. “As we work to ensure the long term inclusion and growth of ethanol in America’s transportation portfolio, the Renewable Fuels Association’s leadership will be needed. We look forward to our membership.”

rfalogo1RFA President and CEO Bob Dinneen welcomed Siouxland Ethanol into the fold. “We are thrilled to announce that Siouxland Ethanol has joined our organization. The hardworking employees of the company have been producing ethanol for nearly a decade, with production increasing in order to provide consumers with the lowest cost, cleanest-burning and highest octane source in the world. We welcome Siouxland Ethanol to our membership and look forward to their contributions.”

Ethanol, Ethanol News, RFA

Green Plains Finalizes Abengoa Acquisition

Joanna Schroeder

greenplainsGreen Plains Inc. has announced the completion of the acquisition of three ethanol plants from Abengoa Bioenergy. The biorefineries are located in Madison, Ill., Mount Vernon, Ind. and York, Neb and were purchased for approximately $237 million in cash plus some working capital adjustments. The ethanol facilities are currently in operation and will produce 236 million gallons per year of ethanol combined. With the purchase complete, Green Plains has sold the ethanol storage assets acquired from Abengoa to Green Plain Partners for $90 million.

“In the past 12 months, we have expanded our ethanol production capacity by approximately 50 percent. Adding the Illinois and Indiana locations provide us with a bigger and more diverse geographic footprint,” said Todd Becker, president and chief executive officer at Green Plains. “With nearly 1.5 billion gallons of production capacity, we are moving meaningful volumes across the agricultural and energy supply chains, further positioning us to serve both domestic and international markets efficiently and effectively.”

Husch Blackwell LLP acted as legal advisor to Green Plains in connection with the transaction. Carl Marks Advisors acted as financial advisors and DLA Piper acted as legal advisors to Abengoa Bioenergy.

biofuels, Ethanol