REG Buys Sanimax Biodiesel Plant

John Davis

REGBiodiesel giant Renewable Energy Group got a little bit bigger. This company news release says REG bought Sanimax Energy, LLC’s 20 million gallon nameplate capacity biodiesel refinery located in DeForest, Wisconsin.

Under the asset purchase agreement, REG will pay Sanimax approximately $11 million in cash and will issue 500,000 shares of REG common stock in exchange for the biorefinery and related assets. REG will also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing based on the volume of biodiesel produced at the plant, which will be re-named REG Madison, LLC. Sanimax operates a grease processing facility at the same location, although that facility is not part of the acquisition. Closing of the transaction is subject to customary closing conditions.

“With growing biomass-based diesel volumes in the U.S., REG is continuing its growth as well,” said Daniel J. Oh, REG President and CEO. “This plant will add to our network of lower-cost, lower-carbon intensity, multi-feedstock biorefineries. Having a dependable feedstock supplier co-located next door should provide an opportunity for additional cost savings and logistical advantages. We have done business with Sanimax and the Couture family for many years and look forward to a continuing prosperous relationship.”

“This agreement is in line with our business plan to improve focus on our core businesses,” said Martin Couture, Sanimax’s President and CEO. “We are pleased that our biodiesel employees will have an opportunity to pursue their career with an industry leader. This is a reflection of the excellent work they have achieved over the past several years. Sanimax looks forward to continuing its excellent business relationship with REG as a shareholder and a reliable feedstock supplier.”

REG says this latest acquisition brings its capacity at its 11 biodiesel refineries to 452 million gallons per year.

Biodiesel, REG

Senate Bill Looks to Clear, Simplify Rules on Biomass

John Davis

collins1A bill that has the backing of Democrats, Republicans and Independents in the U.S. Senate would clarify and simplify federal rules on biomass. This news release from Maine Sen. Susan Collins says an amendment sponsored by Collins and Sen. Angus King from Maine, and cosponsored by Senators Amy Klobuchar (D-MN), Kelly Ayotte (R-NH), Al Franken (D-MN), Steve Daines (R-MT), Mike Crapo (R-ID), and James Risch (R-ID) has been adopted unanimously as part of the Energy Policy Modernization Act, which is currently under consideration in the Senate..

This amendment echoes the principles outlined in a June 2015 bipartisan letter Senator Collins sent to the Department of Energy, Environmental Protection Agency, and Department of Agriculture, which was signed by 46 Senators, including Senator King. The amendment is supported by the National Alliance of Forest Owners, the American Forest and Paper Association, and the American Wood Council.

In November 2014, one hundred nationally recognized forest scientists, representing 80 universities, wrote to the EPA stating the long-term carbon benefits of forest bioenergy. This group weighed a comprehensive synthesis of the best peer-reviewed science and affirmed the carbon benefits of biomass.

“Biomass energy is sustainable, responsible, renewable, and economically significant as an energy source, and many states, including Maine, are already relying on biomass to meet their renewable energy goals,” said Senator Susan Collins. “While the carbon neutrality of biomass harvested from sustainably managed forests has been recognized repeatedly by numerous studies, agencies, institutions, and rules around the world, current policy uncertainty could end up jeopardizing rather than encouraging investments in working forests, harvesting operations, bioenergy, wood products, and paper manufacturing. Our tripartisan amendment would help ensure that federal policies for the use of renewable biomass are clear, simple, and reflect the importance of biomass for our energy future.”

“Not only is forest biomass a home-grown and environmentally-responsible source of energy, but it can also be a significant boon to rural economies in Maine and across the country,” Senator King said. “That’s why it’s time that the federal government recognizes the environmental and economic benefits of this renewable resource. By requiring every federal department to be on the same page when it comes to biomass policy, our amendment will ensure that biomass will play an important role in shaping a clean and affordable energy future for America.”

The amendment requires the Secretary of Energy, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency to ensure federal policies regarding biomass are consistent across all departments and agencies and these federal agencies establish clear and simple policies for the use of biomass as an energy solution.

biomass, Legislation

Two Women Share Their Biodiesel Research

Joanna Schroeder

There is a growing number of women who are forging paths and leading the way in innovative biodiesel research. Two such women are Megan Hums, a student at Drexel University, and Jennifer Greenstein, a student at North Carolina State University. They are both members of the Next Generation Scientists for Biodiesel program and they both presented posters during this year’s National Biodiesel Conference & Expo. I spent some time with both young women to learn about how they became interested in biodiesel/bioenergy. These are some amazing young ladies!

nbb16-greensteinJennifer Greenstein used to work in bioethanol and she says biofuels is something she can really get behind. As such, she headed to North Carolina State University to pursue her PhD and while there began working for Piedmont Biofuels, a biodiesel producer. (She will be graduating soon. Contact her here.)

For her research, Jennifer is working on developing lipases, which are a catalyst to make biodiesel. She is looking at an improved production system for making the lipases and immobilizing them. So in other words, she is looking for a way to express the lipases on the surface of the bacteria rather than intracellularly. The cool thing is that the process she is looking at will use an enzyme to replace chemicals in the production process. To learn more about her research, listen to my interview with Jennifer Greenstein here: Interview with Jennifer Greenstein

nbb16-megan-humsAfter Megan graduated with her undergrad degree she said she felt she still had more to learn. With her interest in sustainability and biofuels she found a project at Drexel University (She’s in her fifth year of her PhD program and graduating soon. Contact her here.) that interested her using waste greases for biodiesel production. She has been involved with this project and it was the focus on her poster.

Megan is looking at the environmental impact of using low quality greases, or kitchen waste greases, which have gone down the sink, to produce biodiesel using nonconventional biodiesel conversion. She then takes the whole process and applies environmental impacts to it through a lifecycle assessment and tries to figure out the footprint of production. To learn more, listen to my interview with Megan Hums here: Interview with Megan Hums

2016 National Biodiesel Conference Photo Album

advanced biofuels, Audio, Biodiesel, National Biodiesel Conference, NBB

Groundswell Unveils Community Solar Financing Model

Joanna Schroeder

Groundswell is changing the way community solar energy is financed. Working with Sustainable Capital Advisors, consumer credit scores will no longer be factored in the financing process, removing an obstacle for consumers across the country. In addition, the program will help the two companies fulfill promises made at the White House Summit last November to create five demonstration projects over the next 18 months as well as launch $25 million of private capital aimed at financing community solar projects located in low and moderate income communities.

“Nearly 50% of Americans aren’t able to switch to solar because they don’t own their roof, don’t have a roof in the right location, or are struggling financially and can’t qualify for financing even if it could help lower their energy bill,” said Michelle Moore, CEO of Groundswell. “We’re grateful to work with Sustainable Capital Advisors to pioneer a program that will work for all families by bringing community organizing together with community solar project finance.”

CommunitySolarCommunity solar programs are designed to help consumers collectively tap into the power of the sun. This model allows families and small businesses the ability to purchase subscriptions to a central solar array located within their utility territory – making it possible to switch to solar without having to install solar panels on the roof. Community solar can also create more distributed generating capacity for America that promotes greater reliability, resiliency, and sustainability across the grid.

Sustainable Capital Advisors Founder and CEO Trenton Allen added that the company works to create innovative financing solutions for sustainable infrastructure that broadens the pool of participants while being replicable and scalable. “We’re committed to working with Groundswell to create economic opportunities in clean energy for low and moderate income communities that haven’t been able to participate before.”

According to a press release, while solar power adoption grows across the country, affordable clean energy remains out of reach for more than 90 million Americans including families that rent their homes and people with credit scores under 650. Overall, the National Renewable Energy Lab estimates that 49 percent. of households and businesses can’t access rooftop solar. Community solar is an emerging solution, and is currently a modest but growing part of America’s energy mix. In total, fewer than 150 projects have been implemented across the United States, including more than 40 located in Colorado alone. However, the market is projected to grow rapidly over the next five years. The hope is that this new financing program will enable more consumers to join the solar revolution.

Clean Energy, Solar

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1The Renewable Fuels Association has announced the addition of Fox River Valley Ethanol LLC as its newest member. The ethanol plant has been operating in Oshkosh, Wis., since 2003. It is a wholly owned subsidiary of Ace Ethanol LLC that employs 45. The plant produces 65 million gallons of ethanol annually as well as co-products such as carbon dioxide, dried distillers grains, and 182,500 wet distillers grains per year.
  • The Geothermal Resources Council (GRC), Geothermal Energy Association (GEA), and Geo-Exchange Organization (GEO) have announced the release of guidance for states on meeting new clean energy standards from the EPA. The free state-by-state guides walk through the benefits and uses of three major types of geothermal applications: power generation, direct use and heat pumps, and initially cover Oregon, Montana, Nevada, Idaho, and Colorado.
  • Lockheed Martin has entered into a 17-year power purchase agreement for solar-generated electricity produced by Duke Energy Renewables. The renewable power purchase, which is expected to produce 30 megawatts (approximately 72,000 megawatt hours per year) of solar energy for the U.S. national grid, will provide clean energy across all Lockheed Martin domestic business segments.
  • Gridco Systems, a leader in agile grid infrastructure solutions, has announced that Hawaiian Electric Company has deployed the Gridco Systems In-Line Power Regulator (IPR) to enable integration of increasing levels of rooftop PV systems. The Gridco IPRs help maintain reliable power delivery within required voltage limits, supporting Hawaiian Electric’s goal to triple distributed generation on its system by 2030.
Bioenergy Bytes

Ethanol Report Analyzes Iowa Caucuses

Cindy Zimmerman

ethanol-report-adSince the ethanol industry made a strong effort to support candidates who favored the Renewable Fuel Standard going into the Iowa caucuses, the oil industry is making much about the fact that one of the only two candidates opposed to the RFS won the Republican vote in the state. In this Ethanol Report, Renewable Fuels Association president and CEO Bob Dinneen analyzes the caucus results and the position GOP winner Sen. Ted Cruz of Texas has taken on ethanol, and comments on the successful efforts of America’s Renewable Future to educate all the candidates about the RFS and renewable fuels.

With 49 more states yet to make their choices for candidates in the November presidential election, Dinneen says the conversation about ethanol and the RFS is far from over. “The debate about renewable fuels, the RFS and ethanol is not just a one state debate,” he says. “It is something that is important across the country.”

Dinneen also predicts that the final nominees for both parties will be supportive of ethanol “and quite likely supportive of the Renewable Fuel Standard.” Listen here: Ethanol Report on Iowa Caucuses

Audio, Ethanol, Ethanol News, Ethanol Report, RFA, RFS

Enviva Building NC Biomass Wood Pellet Plant

John Davis

envivaAlternative energy maker Enviva will begin construction on a biomass wood pellet plant in North Carolina this year with a projected opening in 2017. This article from the Richmond County (NC) Journal says a company representative made the announcement at a Richmond County Board of Commissioners meeting.

Glen Gray, project sponsor for the proposed sites in Richmond and Sampson counties, said the company just recently passed a major hurdle and is moving forward.

Gray added that the N.C. Division of Environment and Natural Resources reported there was “overwhelming support” for Enviva’s project in Richmond County.

He said the company needs to be making product by the fourth quarter of next year, so construction at the site outside Hamlet should begin in the fourth quarter of this year.

Enviva has already spent more than $3 million on the project, has cleared the property and has been working with CSX and the N.C. Department of Transportation, he added.

“We’re like a duck in a pond,” Gray said. “Don’t look like we’re doing much, but if you look under the water, there’s a lot going on.”

State and local officials announced in September of 2014 that the wood pellet manufacturer will bring 80 jobs and a $107 million investment to Richmond County.

This will be the company’s fifth plant in the past five years.

biomass

Gevo, Porta Building Isobutanol Plants in Argentina

John Davis

Gevo logoRenewable energy technology company Gevo, Inc. has inked a deal with South American alcohol maker Porta Hnos S.A. to build several isobutanol plants in Argentina. This Gevo news release says they plan to use corn as a feedstock.

The first plant is to be wholly owned by Porta and is anticipated to begin producing isobutanol in 2017. The plant is expected to have a production capacity of up to five million gallons of isobutanol per year. Based on projected isobutanol pricing, Gevo estimates that it could generate approximately $1 million in annual revenues once the plant is operational, through royalties, sales and marketing fees, and other revenue streams such as yeast sales.

The agreements also contemplate Porta constructing at least three additional isobutanol plants for certain of their existing ethanol plant customers. For these projects, Gevo would be the direct licensor of its technology and the marketer for any isobutanol produced, and would expect to receive all royalties and sales and marketing fees generated from these projects. As one of the leading engineering, procurement and construction (“EPC”) service providers to the ethanol industry in Argentina, Porta would provide the EPC services for the projects. The production capacity of these additional plants is still to be determined.

“Porta is a unique partner for Gevo, as they are expected to be both a direct isobutanol licensee, as well as a partner in building out isobutanol plants for other plant owners. We are excited to leverage their EPC expertise and their local Argentinian presence to accelerate the adoption of our isobutanol technology throughout Argentina, and potentially elsewhere in South America. By partnering with Porta, this will dramatically decrease the investment in engineering and business development resources that Gevo would otherwise have to deploy to roll out our technology in the region. As a result, we anticipate any revenue derived from the Porta relationship to be high margin in nature,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.

“We appreciate Porta’s desire to be the first direct licensee of Gevo’s isobutanol technology, as well as their agreement to be our EPC partner in Argentina. Consequently, we have agreed to waive an up-front license fee for the first plant that is to be wholly-owned by Porta,” added Gruber.

corn, International, isobutanol

Ethanol Plays Key Role in Iowa Campaigning

Joanna Schroeder

caucusSen. Ted Cruz (R-Texas) won the Republican ticket in Iowa last night with Donald Trump coming in second despite Cruz’s ambiguity on ethanol and the Renewable Fuel Standard (RFS). However, compared to the campaigning four years ago, ethanol has gained a significant amount of positive ground according to a press conference held by Growth Energy. The Iowa Caucus kicks off the beginning of the nomination process for the next U.S. president.

Tom Buis, co-chair of Growth Energy, noted on the call that the oil industry is calling the results proof that Iowans don’t care about ethanol. However, he says the facts are, “Over 80 percent of the votes yesterday in Iowa were cast for candidates that are in favor for the RFS.” The results find that there were more pro-RFS votes made in Iowa this year than in 2012.

For example, in 2012 in Iowa, anti-RFS candidate votes were cast for Ron Paul: 21.5 percent; Rick Perry: 10.4 percent; and Michele Bachmann: 5 percent for a total of 36.9 percent. Whereas in 2016, anti-RFS votes were for Ted Cruz: 27.7 percent and Rand Paul: 4.5 percent for a total of 32.2 percent.

According to Paul Tewes, political strategist, who has been a keen observer of the campaigning process, said he has never seen ethanol more talked about, perform better as a whole, or have a politician like Ted Cruz be more contorted about how to talk about it than this one. “This was a race here where ethanol was put on the map, where candidates had to talk about it and most of the candidates moved either completely for it, or the few that didn’t, moved towards it.”

He also noted that if Cruz is the Republican nominee, then he believes Democrats will take the state in November.

Monte Shaw, executive director for the Iowa Renewable Fuels Association (IRFA) added that the effort to support the RFS in Iowa has always been more than about one candidate. “It was about trying to get candidates to understand the reality of the support oil gets from the government and how the RFS cracks through that monopoly.”

To learn more about Iowa voter support for ethanol and the RFS, listen to the full press conference including the Q&A here: Iowa Caucus Results Press Conference

biofuels, Ethanol, Growth Energy, Iowa RFA, politics, RFS

RFA: Cruz In But Ethanol Not Out

Joanna Schroeder

Sen. Ted Cruz (R-Texas) may have won in Iowa last night, but according to the Renewable Fuel Association (RFS), ethanol is not out. RFS President and CEO Bob Dinneen said that his win has created a narrative that presidential candidates campaigning in the state no longer have to voice support for ethanol or the Renewable Fuel Standard (RFS). Dinneen said this is not the case.

“The narrative comrfalogo1ing out after last night’s Iowa caucus that the domestic ethanol industry is somehow on the ropes is false,” said Dinneen. “Many people seem to have forgotten that, in the run-up to last night’s caucus vote, though Sen. Cruz stated he was opposed to the RFS he also expressed support for ethanol as a fuel. In fact the senator has discussed the need to provide American consumers better access to ethanol fuels like E25 or E30, stating that they could prove to be quite popular with American consumers who are increasingly concerned about fuel economy. The senator also called ethanol an effective additive because it increases octane and decreases harmful tailpipe emissions. That doesn’t sound like someone to me who is writing off the domestic ethanol industry. That sounds to me like someone who is just being true to his no-mandates of any kind philosophy.”

Dinneen added, “Moreover, pundits anxious to write off ethanol’s potential currency in Iowa should note that more than 85 percent of the votes cast in Iowa last night were in support of candidates who continue to champion the RFS.”

biofuels, Ethanol, Ethanol News, politics, RFA, RFS