Biodiesel Catalyst Plant Soon to Open in Iowa

John Davis

ia-flag1It’s taken about a year and a half, but an Iowa plant that will make a key biodiesel production catalyst is about to open. This article from the Mason City Globe Gazette says the New Heaven Chemicals plant will start producing sodium methylate by Feb. 1, and be able to produce 24,000 metric tons of the liquid chemical per year.

“We decided to stop bringing it from outside,” said New Heaven Chemicals Director Prasad Devineni. “And, Iowa being one of the biggest biodiesel producing states, it made perfect sense to look at a plant right here.”

Manly was an especially attractive site for TSS Group because the main component of sodium methylate, methanol, is already stored at the Manly Terminal. Many biodiesel plants are also located in northern Iowa.

“Within 100 miles we have about 15 biodiesel companies and we can sell out completely, 100 percent production, within 100 miles,” Devineni said.

Demand for sodium methylate is so strong TSS Group decided during construction to reconfigure the original plans for the New Heaven Chemicals plant in order to increase the facility’s production capability.

The initial plan had been to produce 12,000 metric tons per year, but the company is now building a plant capable of producing 24,000 metric tons per year.

The company received several tax incentives and loan guarantees from the federal, state and local governments to help it get off the ground.

Biodiesel

Is Cruz for or Against Ethanol?

Joanna Schroeder

In Iowa, presidential Republican candidates Donald Trump and Senator Ted Cruz are leading the polls, but the two are running close. One heated area of debate: renewable fuels. With Iowa the leading state for all things biofuels, voters want a president who will continue to support clean, renewable energy and rural economic development, something Trump as been a supporter and recently called Ted Cruz out for not visiting an ethanol plant. He’s not the only one on his case – America’s Renewable Future (ARF) has launched several campaigns against Cruz for his wishy-washy ethanol policy. Yet, this month, at an event in Cedar Rapids, Iowa, Cruz called for the end of all energy subsidies and stated, that as president he would “take on the EPA’s blend wall that is preventing ethanol and biofuels from having a larger share of the marketplace.”

ARF-Logo-Retina-AltThis week, ARF has launched another attack on Cruz calling him a “career politician” and “doing the oil industry’s dirty work”. ARF State Director Eric Branstad, in reaction to his ethanol remarks in Cedar Rapids, noted that they want Iowans to know that, “unlike what Ted Cruz would like them to believe, he is a typical politician who will say one thing in Iowa and do another thing in Washington.”

The ad campaign focuses on his ties to Big Oil. Cruz’s campaign says he is against oil subsidies, but he told an Iowan that subsidies for the oil industry don’t exist and another that tax breaks exclusive to the oil industry, like intangible drilling costs, are not subsidies. In the Senate, says ARF, Cruz has introduced three bills to repeal the Renewable Fuel Standard (RFS) and has consistently voted against measures that would close tax loopholes for the oil industry. The only loopholes he has supported getting rid of are “enhanced oil recovery credits for producing oil and gas from marginal wells”—in the Energy Freedom and Economic Prosperity Act of 2014—which are inconsequential since taxpayers would see no revenue effect from them according to the Joint Committee on Taxation.

“Meanwhile Cruz has failed to introduce a single bill to repeal the $4.8 billion in subsidies that the oil industry receives annually,” said Branstad, “What’s worse is that he opposes the RFS because he claims it is a subsidy. But in fact, ethanol hasn’t received subsidies since 2011.”

Branstad added, “His entire career he’s been in the pocket of the oil industry and he will continue to stand up for it against Iowa farmers and the Renewable Fuel Standard.”

biofuels, Ethanol, politics, RFS

Tax Extenders Package Includes Renewables

Cindy Zimmerman

The broad spending and tax legislation compromise unveiled by House Republicans Tuesday night includes federal tax incentive extensions for renewable energy, including biodiesel, wind and solar.

nBBThe National Biodiesel Board (NBB) commended congressional leaders for reinstating the expired biodiesel tax incentive in the tax and spending proposal released late Tuesday but continued pressing to reform the incentive as a domestic production credit

“Restoring this tax incentive will create jobs and economic activity at biodiesel plants across the country, so we want to thank leaders in the House and Senate for proposing this extension,” says NBB Vice President of Federal Affairs Anne Steckel. “Unfortunately the impact would be muted because this proposal would continue allowing foreign biodiesel to qualify for the tax incentive. This not only costs taxpayers more money but it paves the way for foreign fuels that already receive incentives in their home countries to undercut US production.”

Under the current blender’s tax credit, biodiesel produced overseas that is blended with diesel in the US qualifies for the $1-per-gallon tax credit. This has caused imports to rise sharply in recent years. In 2012, the US imported fewer than 100 million gallons of biodiesel. This year, imports will exceed 650 million gallons, and the Energy Information Agency recently estimated that volume will grow to more than 700 million gallons in 2016. Most of the imports are coming from companies in Argentina, Asia and Europe.

rfalogo1Bob Dinneen, CEO and President of the Renewable Fuels Association (RFA) said of the package, ““By including these important tax incentives in the spending bill, congressional lawmakers sent a strong signal that they are interested in ensuring and encouraging the continued growth and innovation of our nation’s biofuels industry” said Dinneen. “These incentives are crucial for leveling the playing field in a tax code that is, unfortunately, overwhelmingly tilted toward the oil and gas industry. Oil companies have long benefited from billions in accelerated depreciation, intangible drilling expenses, and countless other tax breaks that are permanently imbedded in the tax code. Fundamental tax reform is critical to correct this imbalance.”

Extensions for wind energy’s $0.023/kWh production tax credit (PTC) and solar energy’s 30% federal investment tax credit (ITC) are also part of the package. The wind PTC would be extended through 2020 and would decline in value each year after December 2016 until it is phased out entirely. The solar ITC would be drawn down gradually through 2022.Read More

BIO, Biodiesel, Energy, Government, NBB, Solar, Wind

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1The North Carolina Department of Transportation (N.C. DOT) is continuing to support efforts led by the N.C. Clean Energy Technology Center (NCCETC) at North Carolina State University to reduce transportation related emissions through a two-year $4,494,500 award for the Clean Fuel Advanced Technology (CFAT) project. This marks the fourth phase of the CFAT initiative, which began in 2006.
  • Rays Power Infra Pvt. Ltd. has been ranked as the third largest EPC player in the solar sector in India. The ranking was adjudged by Bridge to India, a leading boutique consultancy and knowledge provider in the Indian cleantech market. As per the report released, Susten (By Mahindra) and Sterling & Wilson (Shapoorji and Pallonji) were given the first and second positions respectively.
  • Sungevity, Inc. has announced that it has completed an equity and project financing transaction totaling $650 million to support the company’s U.S. and international business. This marks the largest financing of a private company in the solar industry for 2015. The new funding allows Sungevity to further optimize its technology platform and grow into new markets and new partnerships.
  • Alterra Power Corp. and Starwood Energy Group Globalhave announced the commencement of commercial operations and funding of tax equity for the 204 MW Shannon wind project. The project is located in Clay County, Texas and was constructed under an EPC contract with Mortenson Construction’s Wind Energy Group. General Electric Company supplied 119 wind turbines (1.71 MW output, 103m rotor diameter) for the project, and will provide operations and maintenance services for the turbines under a long-term contract.
Bioenergy Bytes

Ethanol in Ag Economic Outlook

Cindy Zimmerman

astacss15-basseAt the ASTA CSS 2015 and Seed Expo last week, AgResource Company president Dan Basse presented his economic outlook for agriculture during the opening general session for the fifth year in a row, and once more biofuels figured into the picture.

Basse talked about a “world awash in grain” with record global wheat and soybean crops and second largest corn crop, and a mature U.S. ethanol industry. “They (biofuels) are not going away, they’re not getting any bigger, but we are mature and still utilizing somewhere around 5 to 5.1 billion bushels of corn in this country for biofuels,” he said.

Basse says that the new standards from EPA under the Renewable Fuel Standard (RFS) will drive some growth but not much. “It will have a little impact,” he said. “We think it adds maybe 170 million bushels of corn demand in 2016 … it’s a help, we’ll take anything we can get, however it doesn’t change the fabric of the agricultural markets. We still have too much supply both domestically and internationally.”

He does see some increase in ethanol exports. “But today we’re only shipping out about six and a half percent of our ethanol that we produce in this country for export,” he said. “It may grow slowly but it’s not a game changer.”

Listen to my interview with Basse here: Interview with Dan Basse, AgResource Company

Audio, corn, Ethanol, Ethanol News

Why Energy & Ag Businesses Need Crisis Plans

Joanna Schroeder

A recent ZimmComm poll asked the question, Does your agribusiness/operation have a crisis communications plan?” and I was surprised and honestly a bit disturbed as a former public relations person, that so many respondents didn’t believe a crisis communications plan was necessary. And this in light of the rise in undercover videos, avian flu outbreaks, meatless Mondays, (cow farts causing) climate change, and more. To learn more about why ALL agribusinesses should have a crisis communications plan, I reached out to a highly respected and well known crisis firm, Wixted & Company, and spoke with Principal and Founder Eileen Wixted.

Eileen Wixted-1“In today’s highly connected technological environment in which we operate, having a crisis communications plan is just really smart business risk mitigation,” said Wixted. “Your brand, your reputation, your relationship with your customers, your ability to continue to be successful, frequently hinges not only on your operational excellence, but also on how people feel and what they believe about your company. Having a crisis communications plan in place allows you to be able to execute and implement strategies when the unthinkable happens. It really should be viewed as a must have business plan.”

Wixted noted that back in the 1980s, a crisis was defined very differently than a crisis is defined today. In the 1980s a crisis was anything that went boom in the night or involved an issue leading to a significant health complication. Today, she explained, a crisis can begin when you have interns or employees doing inappropriate things and then self-posting.

“All of a sudden the picture or Tweet goes viral and the world looks at your company and makes decisions about the culture of your company because of a social media post,” said Wixted. “People must begin looking at crisis differently. How you respond frequently defines your company culture and whether or not you are able to move forward unscathed.”

She notes that a crisis situation is what is called a high risk low frequency event. It’s high risk because your company must respond with operational excellence while communicating their action plan while the world may be watching. Most crises are low-frequency and most people don’t have experience in dealing with a crisis- this may be the first time in their long successful career when they are on the frontlines. Eileen uses the example of the avian flu outbreak and undercover videos on how to best manage a crisis.

841C930F-322E-4160-AB27-7BF10B769B34[6]-1Wixted stressed that what is really important is to do your crisis planning when you don’t have a crisis. “As people are getting ready to move into the new year, I think an important business resolution is to be prepared for the unthinkable,” Wixted said in terms of what are we going to say, whose going to say it and when are we going to say it during a crisis. “Because at the end of the day, a well thought out crisis plan provides guidance the confidence that you will be able to manage your organization through a high risk, low frequency event.”

Eileen along with the Wixted & Company team can be reached at 515-226-0818 or by visiting www.thinkwixted.com. Learn more about why your organization should have a crisis communications plan by listening to my interview with Eileen Wixted: Interview with Eileen Wixted, Wixted & Company

Agribusiness, Audio

Grain Growers, Biofuelers to Meet at Export Exchange

John Davis

exportexchange1Two industries that go hand-in-glove will meet next fall in Detroit. The Renewable Fuels Association (RFA) says it is joining with the U.S. Grains Council (USGC) for Export Exchange 2016, scheduled for Oct. 24–27, 2016.

“We are expecting more than 200 international buyers of coarse grains, co-products and ethanol to attend Export Exchange 2016 along with an estimated 300 producers and agribusiness representatives, making this the industry’s premiere opportunity to network with your key customers,” said USGC Chairman Alan Tiemann.

In addition to networking opportunities, Export Exchange 2016 general sessions will address critical issues facing U.S. agricultural exports, offering the customers and sellers in attendance an increased awareness of the benefits of U.S. corn, distiller’s dried grains with solubles (DDGS), ethanol and other products.

“The global demand for DDGS has increased significantly over the last several years, and Export Exchange provides a one-of-a-kind opportunity to bring buyers and sellers together with the goal of promoting continued growth in the international market,” said Bob Dinneen, president and CEO of the Renewable Fuels Association.

More information is available at www.exportexchange.org or on social media using the hashtag #ExEx16. Those interested can sign up for a mailing list to automatically receive conference updates by emailing info@exportexchange.org.

biofuels, RFA, USGC

What’s Climate Accord Mean for Ag?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “Do we need any more gun control laws?”

The latest Islamic terrorist tragedy which occurred here in the United States is being used by many politicians to call for more gun control. But do we need it? Well over half of our pollers believe more gun control isn’t the answer. Some commented stronger background checks are needed.

Here are the poll results:

  • No, too many now – 40%
  • No, current ones not enforced – 37%
  • Yes, but only via Congress – 5%
  • Yes, no matter what – 14%
  • Other – 4%

Our new ZimmPoll is now live and asks the question, What do you think climate accord will mean for ag?

We have spent the last couple of weeks anticipating the announcement from negotiators from nearly 200 countries about the landmark climate accord being discussed at the Climate Change Conference in Paris. But what does this announcement mean for agriculture? Ag Secretary Tom Vilsack said the COP21 deal will support a “better-nourished, stable, secure future” and the benchmarks “build on the ambitious climate smart strategy being implemented by U.S. farmers, ranchers and foresters.” Do you believe the climate accord is meaningless, adds to more regulations or simply good/bad for everyone?

ZimmPoll

Nova Scotia Supports Ocean Energy, Wildlife

Joanna Schroeder

As offshore wind begins to take off, many organizations are concerned about the impact on ocean life. Last week, the Nova Scotia Legislature passed the Marine Renewable Energy Act (Bill 110) as a means to ensure that ocean renewable energy has appropriate licensing and environmental protections in place to protect marine life.

Novia Scotia is looking at tidal energy as a clean energy tool and along with technological developments in this sector, companies are also developing offshore wind farms and wave technology. According to WWF-Canada, Nova Scotia has significant tidal energy potential, and the province has plans to develop enough energy using tidal turbines to power a quarter of the province’s homes. The Bay of Fundy has some of the highest tides in the world, with more water flowing in and out of the bay with each tidal cycle than the output of all the world’s freshwater rivers combined.

Cape Split © Sarah Saunders / WWF-Canada

Cape Split © Sarah Saunders / WWF-Canada

This productive area provides a home for 22 species of marine mammals, including endangered North Atlantic right whales, more than 130 species of birds, and a wide variety of fish and invertebrates. Properly harnessing these tides could help reduce the province’s dependence on fossil fuels, but development cannot compromise this ecologically rich habitat, says WWF-Canada, which supports coastal economic activities, including fishing, aquaculture and ecotourism.

In response to the approval of Bill 110, David Miller, WWF-Canada President and CEO said, “WWF-Canada strongly supports and commends the province of Nova Scotia for their work to revolutionize their energy grid while protecting ecosystems. The Act not only promotes renewable energy, but it recognizes the need to ensure that renewable energy projects do not have substantial impacts on nature. We applaud the government of Nova Scotia for paying attention to the importance of habitat maintenance and protection.”

WWF is promoting a 100 percent habitat friendly renewable energy future by 2050. This Act is one step towards achieving that goal.

Clean Energy, Environment, ocean energy, offshore wind

General Motors Texas Plant to be Wind Powered

Joanna Schroeder

Wind will be soon be powering General Motors’ (GM) Arlington Assembly plant (Texas). Enough renewable energy will be produced to build nearly 125,000 trucks a year. The 115 million kilowatt hours of renewable energy will be enough to manufacture more than half of the plant’s annual vehicle output – the plant produces more than 1,200 vehicles per day. The wind power project should be online during Q4 2016.

GM Wind_Info_finalGM signed a power purchase agreement with EDP Renewables North America for its first U.S. wind power project– 30 MW of energy from the planned 250 MW Hidalgo Wind Farm in Edinburg, Texas. Fifteen of the wind farm’s 261-foot-tall turbines, whose blades span the size of a football field, will generate the energy GM will use.

“Our investment is helping accelerate the proliferation of clean energy in Texas and the use of wind as a reliable, renewable source of energy,” said Jim DeLuca, GM executive vice president of Global Manufacturing. “Our sustainable manufacturing mindset benefits the communities in which we operate across the globe.”

EDP Renewables North America CEO Gabriel Alonso, added, “We are pleased to enter into this agreement with General Motors and look forward to providing clean and more economical energy for GM’s Arlington Assembly plant in the coming years.”

Beginning in the first quarter of 2016, wind energy will help power three GM Mexico facilities. Once on line, the company will exceed its commitment to use 125 MW of renewable energy by 2020. GM’s investments in renewable energy to date have yielded nearly $80 million in savings.

automotive, Clean Energy, Electricity, Wind