Twin Cities radio station, KS95 FM, and the Minnesota Bio-Fuels Association (MBA), recently rewarded customers who fueled up with E15 at Highland Service Minnoco in St. Paul, Minnesota. During the ethanol promotion, customers who fueled up with E15 won prizes from KS95 and MBA. Among the prizes included $25 in cash as well as KS95-branded merchandise. KS95 executive producer and personality, Rudy Pavich, was on site with MBA staff to educate customers on the benefits of using E15 and hand out prizes.- MPCO Automotive has received certification from the EPA for its 2016 Ford F150 (half ton) Pick-Up truck. The truck features the 5.0-Liter TI-VCT V8 engine. IMPCO Automotive’ s 5.0L Bi-Fuel compressed natural gas (CNG) F150 conversion can be purchased through any Ford Commercial Dealership with a ship-thru option for IMPCO’s Indiana Conversion Center. This product expands IMPCO Automotive’ s working class pick-up truck offering to include Dedicated & Bi-Fuel CNG F250/F350, Bi-Fuel CNG F150 and Dedicated CNG Ford F650/F750.
- The American Council for an Energy-Efficient Economy (ACEEE) and Northeast Energy Efficiency Partnerships (NEEP) released new reports that analyze the current and future impacts of information and communications technologies (ICT) on evaluation, measurement, and verification (EM&V) practices. EM&V demonstrates the value of energy efficiency programs by providing accurate, transparent, and consistent assessments of their performance. Both reports provide similar conclusions regarding the potential of advanced data analytics and the availability of data to provide more timely feedback on program results and efficacy, and reduce costs associated with EM&V.
- Boralex Inc. has announced commercial commissioning of the Frampton wind power project, located in Beauce, Canada, with an installed capacity of 24 MW. Located on private land, the project consists of 12 Enercon E-82 wind turbines and is covered by a 20-year contract with Hydro-Québec. Project construction required investments of approximately $80 million and Boralex expects it to generate annual EBITDA of about $9 million.
Congress Votes to Extend ITC for Wind, Solar
The renewable electricity industry got an early holiday present this week as Congress included a five-year extension of the Investment Tax Credit (ITC) for renewable energy projects that provides a 30 percent federal tax credit for commercial installations of solar PV systems and new wind energy projects in the tax extenders package. The ITC was set to expire at the end of 2016.
CGE Energy, a company that offers no capital cost energy solutions, commended Congress on their vote for clean energy. According to a company, they make energy projects possible for commercial and nonprofit facilities without having to rely on government stimulus incentives.
“We have made an important focus on not being dependent on the Investment Tax Credit on our project development, especially considering the uncertain future of the credit,” said CGE Energy’s President and CEO Bryan Zaplitny. “Seeing these latest legislative decisions, the utilization of the ITC where appropriate will increase the benefits we can give our customers as well as expedite our growth and stockholder appreciation.”
CGE Energy is also in the midst of bringing to market their own patented vertical axis small wind turbine, called WIND•e20. The 105-foot tall turbine is being manufacturing by Burtek Enterprises, Inc. a well-recognized market leader in safety critical applications.
Bob Keefe, executive director of Environmental Entrepreneurs (E2), noted that the ITC extension gives wind and solar industries the policy certainty they need to plan future investments, create good jobs and continue to see progress on meeting climate change goals.Read More
Talking Politics at National Ethanol Conference
Some world class political discussion should be expected at the National Ethanol Conference (NEC), Feb. 15-17, 2016, in New Orleans. Political experts Mike Murphy and Paul Begala will get together for a point-counterpoint luncheon discussion on the 2016 election.
Mike Murphy – Political Strategist, Political Analyst for NBC News and Contributing Editor, TIME
Murphy is one of the Republican Party’s most successful political media consultants, having handled strategy and advertising for more than 26 successful gubernatorial and Senatorial campaigns. Murphy has been called a “media master” by FORTUNE magazine, the GOP’s “hottest media consultant” by Newsweek and the leader of a “new breed” of campaign consultants by Congressional Quarterly.
Paul Begala – Political Analyst and Commentator for CNN
Begala has consulted for political campaigns across the country and around the world and is part of the political team at CNN that has won both an “Emmy” and a “Peabody Award”. In the 2012 campaign he was a senior adviser for the pro-Obama Super PAC, making Begala one of the few people to play a critical role in electing two different presidents. After helping engineer Bill Clinton’s presidential campaign, Begala served as counselor to the President, one of Clinton’s closest aides.
More information and registration are available here.
Huckabee Talks Energy During Debate
The CNN Republican Presidential Candidates debate from Las Vegas this week was focused entirely on national security issues, but the word biofuels was actually uttered by one of the candidates who put forth the idea of using energy as a weapon.
“We ought to be challenging not only Russia, but the Iranians and the Saudis, on the point of energy,” said former Arkansas Governor Mike Huckabee during the first debate panel. “We ought to be drilling every bit of oil, getting all the coal out, we need to be going after our natural gas and biofuels, and become the energy exporter of the world.”
Huckabee argued that such an approach would “destabilize” the enemies of the United States. “We need to take an offensive approach by using our energy, the one weapon we have,” he said. “Let’s use it as an offensive weapon to change the dynamics of the entire globe and especially change the dynamics of the Middle East.”
Listen to Huckabee’s comments here: Huckabee energy comments during CNN debate
Biodiesel Catalyst Plant Soon to Open in Iowa
It’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.
Is Cruz for or Against Ethanol?
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.”
This 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.”
Tax Extenders Package Includes Renewables
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.
The 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.
Bob 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
BioEnergy Bytes
- The 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.
Ethanol in Ag Economic Outlook
At 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
Why Energy & Ag Businesses Need Crisis Plans
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.
“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]-1](http://agwired.com/wp-content/uploads/2015/12/841C930F-322E-4160-AB27-7BF10B769B346-1.png){kind=small}
Wixted 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