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

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1Posty Cards is among the first companies in the area to help fill the infrastructure gap for plug-in electric vehicles (EV) by joining the Workplace Charging Challenge, a U.S. Department of Energy (DOE) initiative. The company installed the first privately owned EV charging station in Kansas City in 2010. The EV station is available to Posty Cards’ employees and to the public. The Posty Cards headquarters is located two blocks south of I-70 near downtown Kansas City, making it a convenient location for commuters and long-distance travelers to stop and charge an EV.
  • According to a Offshore Wind Market Update from Navigant Research, 2015 represented a record year for the offshore wind energy market, with more than 3.7 GW that came online, up from just under one GW installed in 2014.
  • Investment firm Vision Ridge Partners has announced that it has closed an investment fund that seeks to deliver competitive returns while meeting the growing demand for sustainable businesses and clean energy. At $430 million, the fund is one of the largest in this space to date and one of the few private investment portfolios focused on later stage clean energy companies and other sustainable assets.
  • CoPower, an online platform for clean energy investing, has opened its first green bond to investors across Canada. Accessible through CoPower’s secure online platform, and eligible for holding in a self-directed RRSP, TFSA or other registered account, this green bond makes it easy for Canadians to invest in clean energy infrastructure in their communities. The bond is backed by loans to rooftop solar projects in Windsor, Ontario and Chesley, Ontario, and an energy efficiency project at the Harbourfront Centre inToronto.
Bioenergy Bytes

Iowa Caucus & Agriculture

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “What’s your planting intentions prediction for 2016?”

Are you still debating what will inhabit your fields this growing season. If so, it’s crunch time. It looks like many will be planting more soybeans this year or keeping it similar to 2015.

Here are the poll results:

  • More corn, less soybeans – 7%
  • Less corn, more soybeans – 7%
  • More corn and soybeans – 6%
  • More soybeans, less corn – 27%
  • Similar to last year – 27%
  • No idea – 26%

Our new ZimmPoll is now live and asks the question, Do Iowa Caucus results reflect ag views?

In a new Agri-Pulse poll of how U.S. farmers and ranchers plan to vote for president, respondents overwhelmingly said they’ll support a Republican, and 40 percent of those are Trump supporters. That compares to 15 percent for Sen. Ted Cruz, 11 percent for Sen. Marco Rubio and 10 percent for Ben Carson. Now that we have the Iowa Caucus results, do you feel they are a reflection of agricultures view?

ZimmPoll

Armow Wind Farm Powers Up

Joanna Schroeder

The 180 MW Armow Wind power facility in Ontario has powered up. The Samsung Renewable Energy and Pattern Energy Group project used Ontario-made products. Towers for the 91 Siemens 2.3 MW wind turbines were made in Windsor and the 273 blades were manufactured in Tillsonburg.

armow wind project“Samsung is proud to complete our fourth wind project under our Green Energy Investment Agreement with the government of Ontario,” said Steve Cho, Vice President, Samsung C&T. “Armow Wind created more than 350 jobs during peak construction and supported over 750 workers from our Ontario manufacturing facilities. Samsung and its partners are creating jobs and investing in the community which is benefiting real people in Kincardine and across the province.”

According to a press statement, Armow Wind is also bringing strong economic benefits to the Kincardine community, including more than $75 million over 20 years in property taxes, landowner lease royalties and community benefits. As part of a long-term Community Benefit Program, Armow Wind committed $13.6 million dollars to the Municipality of Kincardine. The program supports education and other initiatives.

“Armow Wind is a great example of how Ontario is changing the future of electricity. Armow Wind is a project that produces clean, renewable energy and that was built by Ontario workers with Ontario-made wind turbine components,” added Mike Garland, CEO of Pattern Development. “Armow Wind is now generating millions of dollars in local lease payments and property taxes, updating the local airport, and improving the community of Kincardine through our community benefits program. We want to thank the landowners, other community members and the municipality for their hard work and collaboration on this project. We are honored to become a part of this great community.”

The Armow Wind power facility operates under a 20-year power purchase agreement with the Independent Electricity System Operator (IESO).

Clean Energy, Electricity, Wind

Cruz Takes Iowa Despite #RFS Campaign

Cindy Zimmerman

America's Renewable Future logoSen. Ted Cruz of Texas finished a strong first in the Iowa caucuses, despite heavy campaigning against him by the ethanol industry and even Governor Terry Branstad saying it would be a “big mistake for Iowa to support him.” Still, America’s Renewable Future, headed by Branstad’s son Eric, took a positive tone on the caucus results, noting that 100% of Democrats and “more than two-thirds of Republicans are caucusing for a pro-ethanol, pro-RFS candidate.”

“We feel good about our results. The vast majority of our candidates and the vast majority of caucus-goers realize the economic, national security, and environmental benefits of the (Renewable Fuel Standard),” said Eric Branstad. “And even though Sen. Cruz’s position would be devastating to our economy and tens of thousands of Iowans’ livelihoods, even he, who has accepted more donations from oil than any other candidate and is personally invested in oil companies, claims that he’s pro-ethanol and wants to eliminate oil subsidies. That’s a sure sign how important the RFS and ethanol are.”

trump-iowaDonald Trump was “honored” that he placed second in the Monday caucuses in Iowa and expressed his love for the state during his speech to supporters last night, with a parting note that he could become a farmer.

“Iowa, we love you, we thank you, you’re special,” said Trump. “We will be back many, many times – in fact, I think I may come here and buy a farm – I love it!”

Listen to Trump’s remarks here: Donald Trump after Iowa Caucuses

Audio, Ethanol, Ethanol News, politics, RFS

Iowa Ethanol Retailer Profiled for Caucuses

Cindy Zimmerman

goodIn its coverage leading up to the Iowa caucuses, NBC Nightly News profiled an independent fuel retailer who has become a strong advocate for higher ethanol blends.

Charlie Good, who has been in the fuel retailing business for 35 years as a convenience store operator and auto mechanic, started offering higher ethanol blends at his Good and Quick store in Nevada, Iowa in 2013. NBC headlined him as an “Iowa man who’s never caucused before” and he had the opportunity to tell Tom Brokaw why he wanted to be more involved in this year’s election – and it’s all about renewable fuels like ethanol. “This is about national security, providing our own fuel and not buying from people who want to hurt us,” he said.

I interviewed Charlie last March when he took his story to Capitol Hill with the American Coalition for Ethanol, and you can watch Good in the NBC spotlight here.

ACE, politics, Retailers

Oil Prices, Incentives Making Biodiesel Free

John Davis

biodiesel pumpA combination of low oil prices and incentives are making biodiesel sell for free… and in some cases even less! This article from Bloomberg.com says in some places are being paid to use the green fuel.

Midwest refiners are paying as little as 64.5 cents a gallon for the fuel after factoring in a $1-a-gallon tax subsidy and other credits. Add further incentives offered by California into the mix and some customers are effectively getting biodiesel for free in the Golden State.

The cause is twofold. Crude oil’s 71 percent slump since 2014 has dragged down the price of everything from diesel to gasoline. At the same time, the U.S. has shown a renewed commitment to renewable fuels in the battle against climate change, with the Obama administration mandating their increased use.

“They got the tax credit and the higher mandate,” Wallace Tyner, an agricultural economist at Purdue University in West Lafayette, Indiana, said. “They’re coming out looking like roses.”

The article goes on to point to how the raise in the Renewable Fuel Standard (RFS) for biodiesel, along with the renewal of the federal $1-per-gallon tax credit in recent months have contributed to the boon for blenders and consumers. Add in state incentives, such as California’s, and suddenly the price can drop to below free.

When refiners buy a gallon of biodiesel, they’re essentially getting the fuel as well as the credits and subsidies, said Jennifer Case, chief executive officer of New Leaf Biofuel, a San Diego-based company.

In some instances, biodiesel producers and blenders share the value of the tax credit. Some contracts are negotiated taking into account the incentives, while others may be agreed upon without factoring them in.

“Those are really strange,” Case said. “Those are the ones that actually could result in reversing the invoice. The customer has to charge me to take the fuel.”

Biodiesel

U.S. Wind Industry Celebrates Great Q4

Joanna Schroeder

The U.S. wind industry continues to gain power with 5,001 MW installed during the 4th quarter of 2015 – more installations than all of 2014. In 2015 there was 8,598 MW was installed, a 77 percent increase over 2014. U.S. Wind Industry Fourth Quarter 2015 Market Report, published by the American Wind Energy Association (AWEA), finds strong market activity is expected to continue. Going in to 2016, 9,400 MW were under construction.

AWEA_jan report graphics“The data released today show 2016 presents an extraordinary opportunity for American wind power,” said Tom Kiernan, CEO of the American Wind Energy Association (AWEA). “The time has never been better for states and utilities to lock in low-cost, stably-priced wind energy to achieve their Clean Power Plan carbon reductions. Wind energy is on track to supplying 20 percent of the country’s electricity by 2030.”

Wind installations during the fourth quarter of 2015 represent the second strongest quarter ever recorded with total installations across 2015 trailing only 2009 and 2012. Combined there is now 74,472 MW of installed wind capacity in the U.S. and more than 52,000 operating wind turbines.

“Low-cost, stably-priced wind energy is a ‘no-regrets’ solution for states and utilities looking for the best way to meet the Clean Power Plan,” added Kiernan. “Texas ranchers and Iowa farmers know wind power costs one-third as much as it did six years ago. Analysis by the Energy Information Administration confirms that wind energy will make up the majority of states’ lowest-cost Clean Power Plan strategy.”

Clean Energy, Electricity, Wind