Iowa Biodiesel Producers Push for Tax Incentive

John Davis

IowaRFAlogoIowa biodiesel producers are pushing for a renewal of the federal $1-per-gallon biodiesel tax incentive. The Iowa Renewable Fuels Association (IRFA) sent a letter to all members of the Iowa Congressional delegation urging them to pass a multi-year biodiesel tax incentive.

“While facing more than a century of uninterrupted subsidies for petroleum, the biodiesel tax incentive has been allowed to expire four times in six years,” stated IRFA Executive Director Monte Shaw. “Now more than ever, the biodiesel community needs certainty and a level playing field in order to continue to build upon the vast energy security, economic and air quality benefits producing and using biodiesel currently provides to this country.”

The letters stated, “We urge you to do all you can to push for swift passage of a tax extenders package that includes an amendment to shift the biodiesel tax incentive to a producer’s credit, as was unanimously passed out of the Senate Finance Committee in the Tax Relief Extension Act of 2015 (S.1946) on July 21, 2015.

“The biodiesel tax incentive is a proven job creator that is critically important to the U.S. biodiesel industry, and specifically to Iowa biodiesel producers. However, the $1.00 per gallon incentive lapsed on January 1, 2015, marking the fourth time in six years that the incentive has expired—even as favorable tax incentives for petroleum have continued uninterrupted for more than a century. This has created significant disruption and uncertainty in the industry. It is imperative that Congress end this piecemeal tax policy for biodiesel by passing a long-term tax incentive that paves the way for growth.”

The entire biodiesel industry is not quite in harmony on the renewal of the tax incentive. Last week, the Advanced Biofuels Producers Association stated its opposition to an amendment by Sens. Charles Grassley and Maria Cantwell, which would extend the $1-per-gallon federal credit, but would convert the credit from one for blenders (those who make biodiesel mixtures) to one for those who produce biodiesel and renewable diesel.

Iowa is a major producer of biodiesel, with 12 biodiesel facilities able to produce nearly 315 million gallons annually.

Biodiesel, Iowa RFA, Legislation

Biodiesel Board’s Steckel Honored by Clean Cities

John Davis

asteckelA leader from the National Biodiesel Board (NBB) has been recognized by a group working in public-private partnership to reduce petroleum consumption in the transportation sector. The Greater Washington Region Clean Cities Coalition on Wednesday honored National Biodiesel Board Vice President Anne Steckel with its Initiative of the Year Award for her work promoting biodiesel on the local and national level.

Steckel was presented with the award at GWRCCC’s 3rd Annual Awards Luncheon at the Crystal Gateway Marriott in Arlington, Va. The award recognizes an alternative fuels team leader who played a key role in closing a significant and complex alternative fuels challenge during the past year.

“Anne’s leadership has brought about greater sustainability to the biodiesel market as a result of her efforts in release of the new Renewable Fuel Standard (RFS),” said Ron Flowers, Executive Director for GWRCCC. “And her work with GWRCCC has gone a long way in increasing the use of biodiesel in the Washington area to over one million gallons per year.”

Steckel’s leadership and advocacy in Washington, D.C., on behalf of the biodiesel industry resulted in many important initiatives, including a comprehensive campaign demonstrating the benefits of increased biodiesel volumes under the RFS. The EPA’s latest RFS proposal would gradually raise biodiesel volumes by about 100 million gallons per year to a standard of 1.9 billion gallons in 2017. Steckel and the NBB team have vowed to continue working to strengthen biodiesel volumes in the final proposal set to be released in November…

“I want to thank Ron Flowers and the board of GWRCC for this award and for the incredible work they do to promote clean energy in the nation’s capital,” Steckel said. “We absolutely would not have made the progress we’ve made in this area without their leadership. The bottom line is we now have more fleets using biodiesel in the region and we have more mechanics trained in understanding biodiesel’s benefits. The air is cleaner as a result, and hopefully we can continue moving forward with stable federal policy that paves the way for even greater use.”

Biodiesel, NBB

USDA Announces Biofuels Infrastructure Funds

Cindy Zimmerman

vilsack-protecAgriculture Secretary Tom Vilsack was at a Citgo station in Kissimmee, Florida today to announce a USDA partnership to increase fueling pumps for biofuels in 21 states through the Biofuel Infrastructure Partnership (BIP).

The investment will nearly double the number of fueling pumps nationwide that supply renewable fuels to American motorists. “The Biofuel Infrastructure Partnership is one more example of how federal funds can be leveraged by state and private partners to deliver better and farther reaching outcomes for taxpayers,” said Vilsack.

The 21 states participating in the BIP include Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Virginia, West Virginia, and Wisconsin. The final awards being announced today are estimated to expand infrastructure by nearly 5,000 pumps at over 1,400 fueling stations.

Vilsack was joined by representatives from Growth Energy and Florida-based Protec Fuel to make the announcement. “We’re very excited about this USDA program because we’re going to be opening up sites in other parts of Florida, as well as across the country,” said Protec Fuel VP of Operations and Business Development Steve Walk. “What this program is going to help us do is help speed up the growth” of stations offering higher ethanol blends.

Growth Energy CEO Tom Buis congratulated Protec Fuel and thanked Secretary Vilsack for his support of renewable fuels. “The Biofuel Infrastructure Partnership is helping us to further leverage industry funds to gain measurable market access in a far timelier manner than we could accomplish otherwise,” said Buis.”

Listen to remarks from Walk, Buis and Vilsack here: Secretary Vilsack announces biofuels infrastructure funding

Vilsack remarks to the media: Secretary Vilsack comments on Biofuel Infrastructure Partnership

USDA-Protec Fuel Biofuel Pump Funding Announcement photos

Audio, biofuels, E15, E85, Ethanol, Ethanol News, Government, Growth Energy, Protec Fuel, USDA

API Launches Another Anti-RFS Campaign

Joanna Schroeder

American Petroleum Institute’s Downstream Group Director Bob Greco told reporters this morning in a press call that they are launching another multi-faceted ad campaign targeted at the Renewable Fuel Standard (RFS) in anticipation for Environmental Protection Agency’s (EPA) final rules set to be announced by November 30th.

API has launched another anti-biofuels and anti-RFS campaign. The ethanol industry is fighting back.

API has launched another anti-biofuels and anti-RFS campaign. The ethanol industry is fighting back.

“Our ads focus on the negative consequences that higher ethanol mandates EPA is considering could have on consumers, including unexpected repair bills and potentially broad harm to our nation’s economy,” Greco said.

The ethanol industry has been fighting Big Oil about the RFS for years now and there is no end in sight. According to Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), Big Oil is pressuring the EPA to keep blending levels below mandates.

“Much like an uncontained oil spill which obliterates everything in its path, as we approach the deadline for the EPA to release its final RFS rule Big Oil and its congressional supporters are pulling out all the stops by completely obliterating the truth,” said Dinneen. “The blend wall narrative has been perpetuated by the petroleum industry as a way of creating fear among consumers about ethanol, while simultaneously greatly restricting their choices at the pump.

“If the blend wall is such an impenetrable barrier to increasing the amount of biofuels that can be blended with gasoline, as has been claimed by the petroleum industry, how can it explain that, according to data recently released by the Energy Information Agency, in 2013 ethanol comprised more than 10 percent of gasoline consumption in 22 states and the District of Columbia? As one would expect, the EIA data includes the Midwestern agricultural states of Minnesota, Illinois, Indiana, Ohio and Michigan. But a number of coastal states also broke through the so-called blend wall in 2013, including Louisiana, Massachusetts, California and New Jersey. All of these states sailed past the 10 percent ethanol level, and there have certainly been no claims of ‘harmful economic effects’ coming from them. Nationally, ethanol constituted 9.75 percent of gasoline consumption in 2013, according to the EIA data — above the supposed limit of 9.7 percent supported by Big Oil.

Dinneen added that API needs to stop trying to scare consumers about biofuels in an attempt to protect their monopolistic market share. “Consumers rightly deserve to have choices at the pump and to hold onto more of their hard-earned dollars. The RFS is working. No amount of advertising by Big Oil will change that fact.”

biofuels, Ethanol, Ethanol News, RFA, RFS

Electric Vehicle Charging Association Formed

Joanna Schroeder

Screen Shot 2015-10-28 at 11.15.21 AMWith the growth of electric vehicles across the country, several EV industry organizations have come together and launched the California-based Electric Vehicle Charging Association (EVCA). The non-profit was formed to achieve clean transportation by advancing the continued innovation in the EV charging industry. The organization has also released a new report, “The State of the Charge,” a report documenting the charging industry’s rapid growth in California and the significant economic opportunity it presents for the state. Founding members of EVCA are ABM, ChargePoint, Clean Fuel Connection, Envision Solar, EV Connect, NRG EVgo, Plugless Power, SeaWave Battery, and Volta, all of which are headquartered or maintain a significant presence in California.

“Ubiquitous charging is critical to the mass adoption of electric vehicles,” said Terry O’Day, vice president west region NRG EVgo, the nation’s largest provider of public DC fast chargers. “The charging industry is committed to making electric vehicles accessible to everyone and to improving and simplifying the charging experience.”

According to The State of the Charge, there are now more than 9,000 public and workplace charging outlets in California, and the number hits 20,000 when home chargers are factored in. California has 40 percent of the U.S. EV market with 150,000 EVs on the roads, and the number of public/workplace charging stations has grown 652 percent since 2011. The EV industry is expected to generate nearly $4.5 billion in California sales and services by 2023, in part driven by Gov. Jerry Brown’s call for 1 million zero-emission vehicles on the roads by 2020. He has also signed into law SB350 to expand EV charging.

California leads the development of electric vehicle charging infrastructure, technology, and services,” noted Colleen Quinn, Vice President of Government Relations and Public Policy for ChargePoint, North America’s largest EV charging network. “The continued growth and diversity of this industry is critical to meeting California’s ambitious clean air and climate protection goals, and the EV industry supports more than 2,000 California jobs.”

During the launch announcement, speakers noted that In creating the trade association, the EV charging industry is taking an important step to help shape California’s growing EV infrastructure, advocate for policies to advance clean transportation, and serve as a resource for information and expertise. Efforts will focus on creating an environment that maintains the highest levels of innovation and creates maximum value for EV drivers.

Electric Vehicles, Electricity

Bachelor Chris Soules’ Delivers Pro RFS Message

Joanna Schroeder

The end of this week mark’s the final countdown to the Environmental Protection Agency’s (EPA) final rule for the 2014, 2015 and 2016 required volumes for the Renewable Fuel Standard (RFS). To continue to gain support for the renewable energy legislation, Iowa-based America’s Renewable Future (ARF), has tapped in to Bachelor Chris Soules’ fame, who is an Iowa farmer, to raise awareness of the benefits of the RFS. He is also sharing the message of the importance of caucusing for pro-ethanol, pro RFS candidate for president.

Screen Shot 2015-10-28 at 10.51.30 AM“As a farmer and an Iowan Chris knows firsthand just how important the Renewable Fuel Standard (RFS) is to preserving 73,000 Iowa jobs, our agricultural economy, and our environment,” said ARF Co-Chair Rep. Annette Sweeney, “We are thankful that he is using his voice to tell Iowans about the choice we face this election. The choice is stark—politicians who do Big Oil’s bidding and want to repeal the RFS and candidates who stand with Iowans and support this commonsense policy.”

ARF has been following the candidates’ views on biofuels and the RFS, as have we at DomesticFuel, during the campaign process and this week marked the 100 day countdown to the Iowa caucuses. (And in case you missed it, yesterday fellow Iowa-based journalist Jerry Perkins with Biofuels Journal and I announced our “run” across Iowa for the 2015 presidency at the Advanced Biofuels Conference and Expo in Omaha Nebraska. Running T-Shirt compliments of Fleet Feet Sports in Des Moines, IA.)

The video shows Soules on his farm in Northeast Iowa as he harvests field corn, which will eventually be turned into ethanol and Distiller’s Grain (DDG) for livestock feed. For farmers like him, the RFS protects his livelihood and the economic well-being of his tight-knit rural town of Arlington.

“Choosing who to caucus for is a very important decision – especially for Iowa farmers. We need to know if the candidates support the RFS and if they’ll defend this industry for farmers like me,” says Soules says in the video. “I hope you’ll join me in caucusing February 1st for a presidential candidate who stands with us and protects our livelihood through the RFS.”

biofuels, Ethanol, politics, RFS, Video

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1The growth of distributed energy resources (DERs) such as demand management, solar, energy storage, and fuel-based distributed generation are beginning to shift the behavior of the wholesale market. In its latest report, Regulating DER Participation in U.S. Electricity Markets: CAISO, ERCOT and NYISO, GTM Research examines regulatory and market changes integrating DERs into the wholesale market and fueling change across California, Texas and New York.
  • Quad County Corn Processors (QCCP) and Syngenta will host Republican presidential candidate and former U.S. Senator Rick Santorum on a tour of the facility responsible for the first commercial cellulosic ethanol production in the state of Iowa on Friday, October 30. QCCP recently passed the two-million gallon milestone for cellulosic ethanol production using Cellerate™ process technology, designed to increase an ethanol plant’s production by allowing the corn kernel fiber to be converted into cellulosic ethanol.
  • Transparency Market Research has published a new report on the global agricultural biotechnology market. According to the research report, the global agricultural biotechnology market was valued at US$15.3 bn in 2012 and is predicted to reach US$28.6 bn by 2019. The report, titled ‘Agricultural Biotechnology Market for Transgenic Crops (Corn, Soybean, Cotton and Others), Synthetic Biology-Enabled Products and Tools – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019‘, states that the global agricultural biotechnology market is expected to expand at a 9.50% CAGR till 2019.
  • Tell Utilities Solar won’t be Killed (TUSK) launched an ad campaign today calling on Louisianans to voice their support for solar energy. In the ad, former Republican Congressman Barry Goldwater Jr., TUSK Chairman, talks about the benefits of rooftop solar from a conservative prospective. Goldwater Jr. cautions that utilities are attempting to eliminate their competition by gutting policies that allow customers to generate their own solar power.
Bioenergy Bytes

Growth Supports Next Energy Generation

Joanna Schroeder

The next generation of renewable energy, and by extension agricultural experts, are in college and now have an opportunity for some financial support. Growth Energy is providing $90,000 in scholarships over the next three years to students majoring in agricultural education.  The “Upper Division” scholarships will be awarded by the National Association of Agricultural Education and given to students during their student teaching appointments.

NAAE logo“Student teaching can be a financial strain on agricultural education majors,” said Dr. Wm. Jay Jackman, NAAE executive director. “They spend every day teaching, so they are essentially working a full-time job with no pay. There is a national shortage of agriculture teachers, so anything we can do to help students finish their degree and get into the classroom is critical.”

Previously, NAAE’s Upper Division Scholarships were $750 each, and approximately 15 were given each year. Growth Energy’s gift means that the scholarship amounts will be doubled, and beginning in 2016, more of these larger scholarships will be awarded.

Tom Buis, co-chair of Growth Energy added, “There is nothing more important to the future of agriculture than those who wish to enter a career that will help further the innovation, promise and bounty of America’s farmers. American agriculture and those invested in it are the backbone of this nation and Growth Energy is thrilled to help support the future leaders of this industry. We are thrilled to help support those who will write the next great chapter of American excellence by providing food, feed and fuel to move our nation forward.”

Growth Energy’s gift is a special project of the National FFA Foundation.

Agribusiness, biofuels, biomass

Coal-fired Plant in MO Soon to Burn Biomass

John Davis

columbiawaterlightA Central Missouri coal-burning power plant that’s been around for more than 100 years will soon get new life using biomass as its fuel. This story from KOMU-TV says Columbia Water and Light’s Municipal Power Plant burned its last coal on Sept. 22 and is undergoing changes to burn the cleaner biomass.

[Columbia Water and Light spokesperson Connie] Kacprowicz said Columbia’s energy efficiency initiative is part of the reason the plant is undergoing changes. In 2004, voters passed the energy mandate before the city council increased the percentages. The ordinance says Columbia must generate 15 percent of its electric sales from renewable sources by 2018. The percentages jump to 25 percent by 2023 and 30 percent by 2029. Kacprowicz said Water and Light is experimenting with several alternatives to coal.

“Our plans at this point are to test out more biomass, which is an approved renewable resource according to Columbia’s ordinance,” Kacprowicz said. “But you can’t just all of a sudden switch from coal to biomass.”

Kacprowicz said the city must either find a biomass that mimics coal or switch out some of the equipment at the plant. The plant was burning small amounts of wood, a type of biomass source, in addition to its coal production.

Christian Johanningmeier, the power production superintendent, said the plant’s experience burning wood makes it a good candidate as an alternative energy source.

“We are looking at converting one of our boilers to 100 percent wood,” Johanningmeier said. “We have lots of years of experience burning the wood and we know that’s a good fuel, it’s readily available and it seems like it works good for us.”

biomass

Novozymes Intros Avantec Amp Ethanol Enzyme

Joanna Schroeder

The ethanol industry has a new enzyme with the introduction of Avantec Amp. Developed by Novozymes, the company says the enzyme improves yield and throughput in corn ethanol production while also increasing corn oil extraction. The product also reduces the need for several harsh chemicals used in production. According to Novozymes, by switching from standard technology to Avantec Amp, a 110 million gallon-per-year plant can see up to $2.5 million a year in additional net profits.

Novozymes_logo_left“Avantec Amp enables yield improvements and chemical reductions that were previously impossible,” says Peter Halling, vice president – Biofuel, at Novozymes. “It will boost our customers’ bottom line and give them flexibility to adjust their various revenue streams based on market conditions. Ultimately, it will give them a competitive advantage in a challenging market.”

Avantec was introduced in 2012 and Avantec Amp is the next generation. The new products combines multiple enzymes activities into one product, and, says Novozymes, surpasses competing enzyme solutions by squeezing more ethanol from each kernel of corn, thus enabling increased output and saving energy and water. The company also says the enzyme can also boost corn oil production by freeing up oil bound in the corn germ.

In addition, Avantec Amp reduces the need for a number of chemicals used to control and accelerate production processes at ethanol plants. Urea, which is used to improve the fermentation of ethanol, can be cut by more than 70%. Surfactants and ammonia, used to extract corn oil and adjust pH levels, can also be significantly reduced. According to Novozymes,  Avantec Amp is the first enzyme product to replace urea and surfactants.

“By replacing these chemicals with enzymes you get greater safety for workers and lower costs,” adds Halling. “When you simplify the recipe, you reduce the risk of errors associated with handling multiple different compounds and you also have less need for storage.”

biofuels, enzymes, Ethanol