China Instigates Anti-Dumping Investigation

Joanna Schroeder

China’s Ministry of Commerce (MOFCOM) has initiated anti-dumping countervailing duty investigations into U.S. produced distillers dried grains with solubles (DDGS) exported to the country. Both the ethanol industry and the grains industry expressed concern over the announcement.

Dried Distillers GrainsU.S. Grains Council President and CEO Tom Sleight responded by saying, “We are disappointed to see today the initiation of anti-dumping and countervailing duties investigations of U.S. DDGS exports to China. We believe the allegations by the Chinese petitioners are unwarranted and unhelpful. They could have negative effects on U.S. ethanol and DDGS producers, as well as on Chinese consumers, potentially over a period of many years. We are also confident that our trading practices for DDGS, ethanol and all coarse grains and related products are fair throughout the world. We stand ready to cooperate fully with these investigations and will be working closely with our members to coordinate the U.S. industry response.

“The U.S. Grains Council has worked in China since 1981 to find solutions to the challenges of food security through development and trade. There have been measureable positive effects of this work for the Chinese feed and livestock industries and Chinese consumers. We and our members will work vigorously in the coming months to demonstrate that the allegations being investigated by MOFCOM are false, even while we continue to stand ready to expand our cooperation with China on agricultural issues of mutual benefit.”

This is not the first time that China has been down this road. Back in 2011 China began an investigation into DDGs but then in 2012, they dropped it. Now, in 2015, they have re-begun the process.

Tom Buis, co-chair of Growth Energy, weighed in with a statement noting his dissatisfaction with the allegations. “We are disappointed to see the initiation of anti-dumping and countervailing duties cases against U.S. DDGS exports to China. The false allegations by the Chinese petitioners have the potential to seriously threaten our largest overseas market for DDGS and could have a significant impact on the supply, demand and price for DDGS in the U.S. and other foreign markets. We are working closely with our members and the U.S. Grains Council as it coordinates an industry response.”

Distillers Grains, Exports, Growth Energy, USGC

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1Hanwha Q CELLS GmbH has announced that it has signed and closed a share purchase agreement to sell a portfolio of three operating PV power plants in the United Kingdom. The projects were sold for a total amount of GBP 61.7 million (approximately US$90 million) plus working capital to the London listed NextEnergy Solar Fund Limited.
  • Nashville-based renewable energy provider Silicon Ranch Corporation and the Phoenix-based Renewable Energy Team of McCarthy Building Companies, Inc. have announced that construction is set to begin at Silicon Ranch’s 52-Megawatt (MW)AC solar energy plant in Jeff Davis County, Georgia that will provide power at cost-competitive rates to Green Power EMC for the next thirty years.
  • M.J. Bradley & Associates has published a comprehensive modeling analysis of the Environmental Protection Agency’s final Clean Power Plan. The study released today finds that it can achieve significant reductions of carbon pollution from the nation’s power sector while preserving a diverse energy mix. Further, the analysis shows that the Clean Power Plan will increase investment in cost-effective clean energy resources, such as renewables and energy efficiency, and can result in savings for customers on their electric bills.
Bioenergy Bytes

EPA Study on Vehicle Emissions Raises Questions

Joanna Schroeder

A new study has raised questions about the veracity of the U.S Environmental Protection Agencies vehicle emissions modeling system. The third party report found it to be an inadequate and unreliable tool for estimating the exhaust of emissions of gasoline blends containing more than 10 percent ethanol. The evaluation of EPA’s latest Motor Vehicle Emissions Simulator (MOVES2014) model was conducted by scientists from Wyle Laboratories, Inc., and Volpe (part of the U.S. Department of Transportation), and commissioned by the Renewable Fuels Foundation.

rfalogo1“Overall, it was found that the predictive emissions results generated by MOVES2014 for mid-level ethanol blends were sometimes inconsistent with other emissions results from the scientific literature for both exhaust emissions and evaporative emissions,” according to the study. “…results and trends from MOVES2014 for certain pollutants are often contrary to the findings of other studies and reports in the literature.”

The study found that the MOVES2014 model predicts increased exhaust emissions of nitrogen components and particulate matter as the ethanol content in gasoline increases, even though real-world emissions testing based on mid-level ethanol blends has shown distinctly opposite trends. “The results from other researchers often show ethanol-related emissions trends that are different than the MOVES2014 results obtained for this study…” the study found. “In some cases not only were magnitudes different but different [directional] trends were presented.”

The study’s authors suggest the MOVES2014 model’s questionable predictions for certain emissions likely result from the use of data that misrepresents the actual parameters and composition of mid-level ethanol blends. Specifically, the default ethanol blend data in the model is based on arcane “match blending” methods intended to “match” specific fuel parameters, rather than “splash blending” methods that are used in the real world. According to the study, “…real-world splash blends may not have the same attributes as the modeled default match blends used in MOVES, and actual emissions may be different than the emissions predictions from MOVES.”

In an attempt to simulate the emissions of mid-level ethanol blends created using real-world “splash blending” practices, the Wyle and Volpe scientists performed an analysis where certain fuel parameters were modified. However, the model still produced questionable results that suggested increases in emissions of nitrogen components and PM as ethanol content increases.

To correct the deficiencies with the MOVES2014 model, the authors recommend obtaining new mid-level ethanol blend emissions data using blends that better represent real-world fuel properties and blending practices. They write that “…additional vehicle exhaust testing from mid-level ethanol blends with well-defined fuel properties is recommended.”

Ethanol, Ethanol News, RFA

Biodiesel Production Record Set in Iowa

John Davis

Iowa-RFA-logo-new1Already the nation’s leader in biodiesel production, production of the green fuel in Iowa hit record levels in 2015. This news release from the Iowa Renewable Fuels Association (IRFA) says despite policy uncertainty for nearly all of 2015, Iowa biodiesel production set a new annual record of 242 million gallons, topping 2013’s record of 230 million gallons.

“It must be said that Iowa’s record biodiesel production in 2015 is a testament to the efficiency of Iowa’s plants and to the effectiveness of Iowa’s state level policies promoting the production and use of biodiesel,” stated IRFA Executive Director Monte Shaw. “Considering neither the federal Renewable Fuel Standard nor the federal biodiesel blenders’ tax credit were in effect for the vast majority of 2015, the resiliency of Iowa biodiesel producers really shone through in 2015. With the federal RFS and tax credit in place for 2016, we are hopeful for big things.”

The amount of Iowa biodiesel produced from soybean oil decreased in 2015, but remains the largest feedstock in Iowa, accounting for 66 percent of production. Animal fats held steady at 19 percent of biodiesel feedstocks. With changes to some biodiesel plants’ technology, distillers’ corn oil made a big jump to 10 percent of production, up from just 2 percent last year. Used cooking oil and canola oil accounted for the remaining 5 percent.

IRFA says Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.

Biodiesel, Iowa RFA

Arkema Addresses Corrosion in Biodiesel Process

John Davis

arkemaOne of the issues for biodiesel producers is corrosion of equipment by chemicals used in the production process. Pennsylvania-based chemical company Arkema has developed a low corrosion version of Methane Sulfonic Acid (MSA LC) that will turn free fatty acids into quality biodiesel without using the acids that damage the biodiesel production equipment.

“MSA LC provides excellent corrosion control while maintaining high conversion to and yields of quality biodiesel,” said Vijay Srinivas, principal research scientist in Arkema’s North American thiochemicals business unit. “Its use reduces plugging by salts downstream in the process and reduces catalyst loss compared to sulfuric acid. In addition, using MSA LC significantly reduces the amount of base catalyst required for the subsequent trans-esterification step, which allows the acid recovered in the aqueous phase after esterification to be reused elsewhere in the process, resulting in overall cost savings,” Srinivas noted. “The biodiesel produced using MSA LC has less metal content and less sulfur,” he added.

Benefits of MSA LC include better color and clarity of the resulting biodiesel as well as the flexibility to use diverse feedstocks with FFA content from very low concentrations to high concentrations. Use of MSA LC can also help eliminate or reduce waste treatment because MSA LC salts are completely biodegradable with low COD.

MSA LC is fully compatible with standard stainless steels AISI 304, AISI 316, and the low carbon or Ti stabilized versions. Using the MSA LC grade in a biodiesel unit can significantly reduce the risk of corrosion in pipes, reactors, separators, and purification units.

Overall, MSA LC is a very versatile acid that provides strong acidity, high solubility of alkali metal salts, biodegradability and, for esterification processes, high selectivity of the reaction. It is most often delivered, transported and used as a 70 percent aqueous solution.

If you’d like to find out more, you can visit Arkema’s booth (#128) at the 2016 National Biodiesel Conference & Expo on Jan. 25-28, 2016, at the Tampa Convention Center in Tampa, Florida.

Biodiesel

Wind Power Gains Speed in Canada

Joanna Schroeder

Wind power is gaining speed in Canada. At the end of 2015, the country was the seventh largest in the world for total installed energy capacity with 11,205 MW and sixth in the world for the amount of capacity added in 2015 according to the Canadian Wind Energy Association (CanWEA). In total for 2015, Canada added 1,506 MW of new wind capacity through the commissioning of 36 projects, 23 of which involved Aboriginal Peoples, municipal or local ownership. Wind energy supplied nearly 5 percent of the country’s electricity demand.

“Not only has the wind energy industry continued its five year trend as the largest source of new electricity generation in Canada,” said CanWEA President Robert Hornung, “the industry in Canada has demonstrated a five year annual average growth rate of 23 per cent per year (an average of 1,438 MW per year).”

20160112_C2542_PHOTO_EN_596921Ontario lead the way again in 2015 in market size and growth, adding 871 MW of installed capacity in 2015 for a new total of 4,361 MW. Between contracts signed and planned new purchases through the province’s new Large Renewable Procurement process, there remains more than 2,000 MW of wind slated to be built in Ontario in the next few years.

Quebec, Canada’s second largest wind energy market, was also the second largest contributor of new installed capacity in 2015, adding 397 MW for a total of 3,262 MW. This included the largest multi-phase project commissioned in Canada to date – the 350 MW wind farm in Riviere du Moulin. The first phase with 150 MW was commissioned in 2014 and the remaining 200 MW was commissioned in 2015. The province has another 700 MW due to come online in the next two years.

Six wind turbine manufacturers (OEMs), all CanWEA members, supplied the technology for the new wind capacity commissioned in 2015 in Canada. Siemens Canada Limited led installations with close to 50 percent, followed by Senvion Canada Inc., GE Renewable Energy, ENERCON, Acciona Wind Energy Canada and Vestas Canada.Read More

Clean Energy, Electricity, Wind

Renewable Fuels Marketing Awards Presented

Joanna Schroeder

Darin Schlapia from Farmers Cooperative Company based in Afton, Iowa and Kevin DeGoey from New Century FS in Grinnell, Iowa have won the Secretary’s Biodiesel and Ethanol Marketing Awards by Iowa Secretary of Ag Bill Northey. The awards honor fuel marketers who have gone above and beyond in their efforts to promote and sell renewable fuels including ethanol and biodiesel. Activities include hosting special events such as pump promos, creative signage, and innovative marketing campaigns.

Schlapia, DeGoey“New Century FS and Farmers Cooperative Company have made expanding access to renewable fuels a priority and invested in the infrastructure necessary to make variety of biodiesel and ethanol available to their customers. On top of that, they have worked hard to promote these home-grown fuels and educate their customers about the benefits,” Northey said.

The winners were announced and recognized during the Petroleum Marketers & Convenience Stores of Iowa Annual Meeting in Des Moines on Jan. 12th.

Northey added, “Fuel marketers are the place where customers access the home-grown, clean-burning renewable fuels we produce here in Iowa. Our state is fortunate to have many retailers that have made a significant investment to give customers greater access to renewable fuels and more choice at the pump.”

Kevin DeGoey, the Energy Department Manager for New Century FS in Grinnell is winner of the 2016 Secretary’s Ethanol Marketing Award. New Century FS offers higher ethanol blends at their sites in Grinnell and Vinton and are working to add additional ethanol blender pumps as part of the Iowa USDA Biofuels Infrastructure Partnership program. They were an early adopter of registered E15 and are now one of 40 locations statewide offering this higher blend to customers. In the second year that E15 was offered at their facility in Vinton sales jumped 93 percent and now account for 27 percent of the fuel sales at that site.

Darin Schlapia with Farmers Cooperative Company in Afton is the winner of the 2016 Secretary’s Biodiesel Marketing Award. Farmers Cooperative Company participated in the “Fueling our Future” pilot program to install one of the first biodiesel blender pumps in the state at their site in Mt. Ayr. That site offer offers #2 diesel, B11, B20, B30 and B99. As part of the “Fueling our Future” program, Schlapia and Farmers Cooperative Company worked with Iowa State University to evaluate consumer perceptions and the impact of increased assess to mid-level biofuels blending options, including impacts on improved air quality.

Biodiesel, biofuels, Education, Ethanol

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1SolarEdge Technologies, Inc. has announced the immediate international availability of its StorEdge solution. At the end of 2015, the company already completed a number of StorEdge installations in select locations around the world.
  • Ormat Technologies, Inc. has announced today that its indirect, wholly owned subsidiary has commenced construction of the 35 MW Platanares geothermal project in Honduras. In 2013, Ormat signed a Build, Operate, and Transfer (BOT) contract for the Geotérmica Platanares geothermal project in Honduras with ELCOSA, a privately owned Honduran energy company, for approximately 15 years from commercial operation date (COD). In December 2015, Ormat concluded the drilling activity as well as extensive tests that support the decision to construct a 35 MW project, which is larger than initially estimated.
  • Yingli Green Energy Holding Company Ltd. has announced that its holding subsidiary, Hainan Yingli New Energy Resource Co, LTD. has entered into definitive agreements to form a joint venture to establish a new solar panel factory in Thailand with Demeter Corporation PLC’s subsidiary, Demeter Power Company Limited, a Thailand-based developer, EPC provider, and operator of renewable energy projects.
  • SPI Energy Co. has announced the closing of its investment of RMB30 million for a 60% stake in Beijing Yiwei New Energy Technology Development Company, an Internet-based electric vehicle rental service provider located in China.
Bioenergy Bytes

Missouri Can Meet Clean Power Plan with Policies, Efficiency

Joanna Schroeder

Missouri can meet targets under the Clean Power Plan (CPP) through clean energy policies and better power plant efficiency according to an analysis from World Resources Institute. Under the CPP, the state has a mass-based emissions reduction target of 29 percent below 2012 levels by 2030. The analysis shows that if Missouri achieves its MO_fig_1current energy efficiency and renewable energy goals and makes more efficient use of its natural gas and coal fleet, the state can get 90 percent of the way towards its target. However, if Missouri expands its renewable energy standard, the state can exceed its target, achieving 34 percent reductions below 2012 levels by 2030.

“Missouri has already taken steps toward meeting its Clean Power Plan goals,” said Sam Adams, director, U.S. Climate Initiative, WRI. “Missouri’s energy efficiency and renewable energy policies are creating jobs and spurring in-state investment. If Missouri expands on the progress it’s already making on energy efficiency and renewable energy it can seize important economic opportunities while complying with the Clean Power Plan.”

The analysis finds that Missouri’s energy efficiency and renewable energy policies already benefit the state. For example:

  • In 2014, the energy efficiency sector in Missouri employed 32,000 people, a number expected to grow if efficiency programs are expanded;
  • According to the American Wind Energy Association, Missouri’s wind industry has generated $1.4 million in annual land lease payments and $1 billion in total capital investment as of 2014, in addition to employing 6,000 workers that year;
  • Meeting the existing renewable energy standards could create 30,000 new jobs by 2021 and provide over $1 billion in new income to residents;
  • According to analysis by the American Council for an Energy-Efficient Economy, new energy efficiency initiatives in Missouri, including utility programs and building codes, could save consumers $6.1 billion and create 8,500 new jobs.
  • Currently, Missouri spends about $1.3 billion per year on importing coal from other states. By investing in efficiency and renewables, Missouri can reduce its imported coal consumption and keep more of its energy investments in-state.

“Missouri can come close to its Clean Power Plan emissions reductions target by following through on its renewable energy standard and voluntary energy efficiency goals and making smarter, more efficient use of fossil fuel power plants. And by expanding its renewable energy standard, the state can go even further,” said Rebecca Gasper, research analyst, WRI. “Missouri can use its existing clean energy policies to ensure the state continues toward a low carbon future while bringing economic benefits to its residents and businesses.”

Clean Energy, Clean Power Plan, Electricity, energy efficiency, Wind

RFA Comments on DOE’s Innovative “Optima” Program

Joanna Schroeder

The Office of Energy Efficiency & Renewable Energy (EERE) had a call for information on Co-Optimization of Fuels and Engines (Optima). The Renewable Fuels Association (RFA) submitted comments stating that the Association agrees that “co-optimization of future fuels and engines is an essential strategy for achieving national objectives related to energy conservation, carbon emission reduction, and energy security.”

rfalogo1The comments were authored by RFA Senior Vice President Geoff Cooper who noted in the remarks that a significant amount of work is already underway that complements Optima’s goals including lifecycle energy and greenhouse gas analysis of ethanol and high octane fuels (HDFs); evaluation of tools to predict HOF exhaust emissions; infrastructure compatibility and cost analyses; development of standards and specifications; and other activities. The comments also pointed out several areas for further research and collaboration, including actual HOF emissions testing; refinery-level economic analysis; using flex-fuel vehicles as a “bridge” technology to HOFs; and further characterizing the properties of various octane sources.

RFA notes that existing regulatory barriers pose the most significant threat to the commercial introduction of HOFs. According to RFA, “Federal regulatory barriers that must be addressed include: fuel volatility (RVP) regulations; Tier 3 regulations regarding certification fuels; new fuel registration requirements; treatment of biofuels and FFVs in determining compliance with 2017-2025 CAFE/GHG standards (e.g. ‘R-factor’ and ‘F-factor’ values); inconsistent boundaries and approaches to regulatory lifecycle GHG accounting; and tailpipe pollutant (i.e., non-GHG) emissions estimation. In addition, a number of state regulatory barriers need to be addressed to facilitate introduction of HOFs.”

RFA stated the “chicken and egg” phenomenon was a substantial barrier to the deployment of co-optimized engines and HOFs, characterizing the phenomenon as one where “automakers are hesitant to invest in manufacturing HOF-optimized vehicles until HOFs are substantially available in the marketplace, and…fuel producers are reluctant to invest in infrastructure to produce and distribute HOFs until HOF-optimized vehicles are substantially available.” RFA said a primary objective of the Renewable Fuel Standard (RFS) was to “eliminate the ‘chicken or egg’ fuel/engine situation by specifying biofuel volumes that must be consumed far in advance, providing substantial lead time for affected industries to implement plans.” RFA stated that the EPA’s “unlawful reinterpretation of its statutory waiver authority and its reduction of RFS volume obligations has raised serious concerns about the future viability of the RFS as a tool for driving the transition to HOFs and optimized SI engines.”

automotive, Ethanol, Ethanol News, RFA