Avalara has published a free white paper, “The Rise of Biodiesel: New Alternative Fuel, New Taxation Challenges“. The report reviews the growth of the biodiesel industry and the role played by the Renewable Fuel Standard (RFS) as well as tax policy at the state and federal levels, supply chain tax challenges of biodiesel, and complexities of multi-state transactions.- Agriculture Secretary Tom Vilsack has announced nearly $2.3 billion in loans to build and improve rural electric infrastructure in 31 states. USDA is awarding loans to 77 utilities and cooperatives in 31 states. The funding includes more than $108 million for smart grid technology, $41 million for renewable energy improvements and $9 million for storm damage repairs. These loans will help build or improve 12,000 miles of transmission and distribution lines. The funding is being provided through USDA Rural Development’s Electric Program.
- The Initiative for a Competitive Inner City (ICIC) and FORTUNE announced that Baltimore based Bithenergy, a renewable energy firm, topped the 2015 Inner City 100 list of the fastest-growing inner city businesses in the U.S. Bithenergy was recognized by longtime ICIC partner Staples, Inc. for both its top place on the list, and for its growth rate of 2,973 percent. Bithenergy applies a professional services model to the energy business and offers intelligent strategies for development of renewable energy systems, managing energy consumption, and building smart grid infrastructure.
- Because of the increase in shale gas development over recent years, the total GHGs from fossil fuel use in the U.S. rose between 2009 and 2013, despite the decrease in carbon dioxide emissions. Given the projections for continued expansion of shale gas production, this trend of increasing greenhouse gas emissions from fossil fuels is predicted to continue through 2040. This is detailed in Energy and Emission Control Technologies’ new review “Methane emissions and climatic warming risk from hydraulic fracturing and shale gas development: implications for policy”. The report finds a need to move away from all fossil fuels and move to renewable energy such as wind and solar.
Get Set to Go to the Biodiesel Conference in Tampa!
It’s that time of year again! Time to register for the National Biodiesel Conference & Expo, going on Jan. 25-28, 2016, in Tampa, Florida. Organizers promise networking and educational opportunities that aren’t available anywhere else.
This year, we are on the water in Tampa, and you’ll see some big differences to our format. First, we’ve expanded meeting and sitting space to make our Expo Hall an easy place for you to meet clients and do business. Second, new sessions and schedules recognize one of the most valuable assets of this event is the people you see and meet. With many restaurants in easy walking distance, the venue is perfectly positioned for evenings to host key clients, engage new contacts and interact with biodiesel leaders. We encourage you to consider a sponsorship this year; we have a host of great options to showcase your company or can build one to meet your specific needs.
This event has proven time and again your investment in time and money to make the trip will return value to you and your organization in both dollars and your role in the industry. There is no question this is the biodiesel event of the year, only a question of how you’ll capitalize on the opportunities it presents.
ABFA Opposes Biodiesel Tax Credit Restructure
A move that extends the federal biodiesel and renewable diesel tax credit for two years, but changes its structure, is finding opposition from at least one biofuels group. The Advanced Biofuels Producers Association opposes 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.
Converting the tax credit to a producer’s tax credit and limiting its availability fails to capture the global market essence of fuels. It increases profits for a limited number of producers; while reducing the overall availability of fuels. Any limits in the supply chain are likely to increase costs for consumers. This amendment also places an unnecessary burden on fuel retailers who have incurred significant costs to purchase and maintain the equipment to dispense blended fuels, another cost likely to be passed on to consumers.
There is also significant concern that the provision will limit the supply of biofuel heating oil into the Northeast this winter. This change, in combination with the poorly designed excise tax system, could lead to consumers paying as much as an additional 24 cents per gallon for their biofuel heating oil this winter. Converting to a production credit will also likely result in a trade violation, a concern acknowledged by Senator Grassley.
With the potential for rising costs to consumers both at the pumps and at home, Michael McAdams, President of the Advanced Biofuels Association, released the following statement in response:
The current blenders’ credit for biofuels creates a competitive market for biodiesel and renewable diesel, which benefits the American consumer. Continuing and extending the original policy allows truckers and consumers to share in the value, it encourages consumer acceptance, and it benefits blenders and those who provide the feedstocks that make these cleaner, better fuels. This amendment destroys these positives, by syphoning the benefits to a small group of producers and punishing everyone else along the supply chain, including consumers. ABFA and its partners believe the current blenders’ credit should be extended in its longstanding form as originally intended.
You can read the group’s letter here.
P&G to Meet Power Demands with 100% Wind
Proctor & Gamble (P&G) made an announcement this week when they committed to meet 100 percent of its electricity demands with wind power. The company has developed a partnership with EDF Renewable Energy (EDF RE) that includes the development of a 370,000 MWh wind farm in Cooke County, Texas expected to be online by December 2016. The Tyler Bluff Wind Project will produce enough energy to meet all power demands for their North American Fabric and Home care plants where globally brands including Tide, Gain, Downy, Dawn, Cascade, Febreze and Mr. Clean are manufactured.
The announcement was made in conjunction with P&G’s signing of the American Business Act on Climate Pledge where they pledged to achieve 30 percent renewable energy to power its plants globally by 2020 with a longer-term vision of all facilities being 100 percent renewable energy powered.
Speaking about the project Shailesh Jejurikar, North America Fabric Care President, P&G, said, “I am delighted that our collaboration with EDF RE continues to provide our consumers with their favorite, high performing brands while reducing our environmental footprint. At P&G, when it comes to sustainability, actions speak louder than words and this move is a significant milestone in delivering that promise. It is incredible that the wind farm will generate enough electricity for all our P&G Fabric and Home Care plants; to put that in context: This is enough electricity to wash a million loads of laundry.”
The electricity consumption of the plants makes up about half of their total energy consumption, and this electricity will be exclusively generated by wind power. The plants will continue to use natural gas for process heating and comfort heating during winter.
To celebrate the scale of the collaboration, P&G Fabric & Home Care and EDF RE have constructed a mini-wind farm in Washington DC. The installation is placed on the lawn in front of the Capitol Building and is made up of thousands of spinning pinwheels.
Funding Secured for Redstone CSP Plant in Africa
Funding has been secured for the Redstone Concentrating Solar Power (CSP) project in Northern Cape, South Africa by the Overseas Private Investment Corporation (OPIC). The group has made a $400 million commitment of debt financing for the project, that is part of Secretary John Kerry’s Climate and Clean Energy Investment Forum. The project also supports President Obama’s Power Africa initiative to bring power access to more than 600 million sub-Saharan Africans currently living without power. The CSP facility will be developed by U.S.-based SolarReserve and ACWA Power.
The first of its kind in Africa, the Redstone Solar Thermal Power Project features SolarReserve's world-leading molten salt energy storage technology in a tower configuration with the capability to support South Africa's demand for energy when it's needed most – day and night. The 100 MW project with 12 hours of full-load energy storage will be able to reliably deliver a stable electricity supply to more than 200,000 South African homes during peak demand periods, even well after the sun has set. (PRNewsFoto/SolarReserve)
The 100 MW Redstone project will be connected to the South African national grid. The solar plant will Using SolarReserve’s CSP technology, Redstone’s molten salt storage capability will deliver consistent baseload electricity, even after the sun sets. This is a critical development in a country where frequent power outages have been cited as an obstacle to economic growth.
SolarReserve’s CEO Kevin Smith said the project marks an important technology advancement for Africa in clean, renewable power. He also noted that the project’s delivered electricity price is the lowest of any CSP project in the country to date.
Patrick Gaspard, U.S. Ambassador to South Africa, said of the news, “We are excited about the progress forged by OPIC and these private sector leaders on the Redstone project. It’s a priority for South Africa and regional neighbors to diversify their power production beyond traditional energy sources, including a greater share of renewables, efficiency improvements, and energy storage capabilities. The U.S. stands by South Africa as a partner, and working together with agencies like OPIC and great U.S. companies like SolarReserve, we can increase sustainable access to electricity, a foundation linked to overall lasting economic growth.”
Massachusetts Most Energy Efficient US State
Massachuesetts has edged out California as the most energy efficient state in the U.S. according to the ninth annual State Energy Efficiency Scorecard. Several states continue to improve their scores including California, Maryland, Illinois, Texas and Washington D.C. The report is published by the American Council for an Energy Efficient Economy (ACEEE) with support from the U.S. Department of Energy (DOE).
ACEEE Executive Director Steve Nadel said of this year’s findings, “As states move to frame their plans under the federal Clean Power Plan this year marks a tipping point for energy efficiency. State policies are increasingly encouraging utilities to invest in cost-effective efficiency, prompting them to adopt new business models that align their interests with those of customers and policymakers. We can see this taking hold in the 20 states that improved their Scorecard rank in 2015. Utilities across the United States invested more than $7 billion in energy efficiency over the past year alone.”
Some key finding of the 2015 State Scorecard include:
- The top 10 states for energy efficiency are Massachusetts, California, Vermont, Rhode Island, Oregon, Connecticut, Maryland, Washington, and New York, with Minnesota and Illinois tied for 10th place. Massachusetts retains the top spot for the fifth consecutive year based on a strong commitment to energy efficiency under its Green Communities Act.
- A solid 20 states rose in the State Scorecard rankings. California, a leading state, is also one of the most improved states this year. Maryland, Illinois, the District of Columbia, and Texas also deserve recognition for improvement over the past year.
- Overall, 16 states fell in the rankings this year, due to such factors as policy or program rollbacks or failure to keep pace as other states expanded efficiency efforts. The five states most in need of improvement (starting with dead last) are: North Dakota, Wyoming, South Dakota, Louisiana, and Mississippi, although new efficiency programs in Louisiana and Mississippi mean these states may not be in the bottom for much longer. While not in the bottom five states, New Mexico dropped the farthest in 2015, losing four points and falling six positions from 25th to 31st in the rankings. This is due in part to the state’s failure to adopt energy building codes beyond the 2009 requirements.
Another key finding: Savings from electricity efficiency programs in 2014 totaled approximately 25.7 million megawatt-hours (MWh), a 5.8% increase over last year. These savings are equivalent to about 0.7% of total retail electricity sales across the nation in 2014. Gas savings for 2014 were reported at 374 million therms (MMTherms), a 35% increase over 2013. Click here to read the full report.
BioEnergy Bytes
- Sierra Club has launched a statewide advertising campaign in Colorado thanking Senator Michael Bennett for sponsoring the “American Energy Innovation Act,” a bill which makes ambitious yet achievable reductions in carbon pollution, repeals centuries-old oil subsidies, and begins to level the playing field for renewable sources of energy. Senator Bennett was a key sponsor of the bill, and was joined by many of his Independent and Democratic colleagues in championing the legislation.
- Novozymes, the world’s largest producer of industrial enzymes, has announced its results for the first nine months 2015. Sales grew by 4% organically and by 14% in DKK compared with 9M 2014. EBIT grew by 15%, and the EBIT margin was 27.7%. Net profit grew by 11%, and free cash flow before acquisitions came in at DKK 2,022 million. In Q3 alone, sales grew by 3% organically and by 11% in DKK compared with Q3 2014.
- Stroud Companies and their subsidiaries have completed funding of the Series A Capital Raise for CURB, further diversifying the portfolio of companies and industries in the portfolio. Started in 2012, Austin based CURB is a revolutionary technology and manufacturing company specializing in hardware and software for monitoring and managing energy consumption and solar production in homes and businesses. This technology seamlessly interfaces with other industry-leading Smart Home platforms for intelligent device control.
- Sunnova Energy Corporation has announced it secured approximately $300 million in committed debt and equity funding that the company will use to continue growing its position in the residential solar energy service market. The transactions include a conduit facility arranged by Credit Suisse, and an equity financing round led by Triangle Peak Partners, LP. Additional equity investors include business development companies sponsored by Franklin Square Capital Partners LP.
Global Wind Atlas Offers Comprehensive Data
A new free resource has been launched that provides detailed data and statistics on global wind energy potential. Provided by the International Renewable Energy Agency (IRENA) and the Technical University of Denmark (DTU), the Global Wind Atlas, provides wind resource data at one-kilometre resolution; whereas, in the past the best data was at 10-kilometres.
“Wind energy potential across the globe is vast, but the upfront costs of measuring potential and determining the best locations for projects is an obstacle in many countries,” said IRENA Director-General Adnan Z. Amin. “The new Global Wind Atlas provides this needed data directly and for free, making it a ground-breaking tool to help jumpstart wind energy development worldwide.”
The Wind Atlas is the latest offering as part of the Global Atlas, a renewable energy mapping tool. The organization explains that the dataset uses microscale modeling to capture wind speed variability on small scales, allowing for better estimates. For example, when locating wind farms, developers naturally pick areas with the highest wind speeds. In datasets that provide average wind speeds over large areas, the enhancement of wind speeds due to small scale features such as hills and ridges are not captured, making the resource appear weaker than it actually is. The Wind Atlas can prevent this underestimation, provide visual maps showing wind speeds at three different heights, and also provide tools to generate and export data and statistics such as wind roses and wind speed distributions over a chosen area.
Danish Minister for Energy, Utilities and Climate, Lars Christian Lilleholt, added, “The release of the Global Wind Atlas demonstrates the support of the international community to expand global renewable energy to address global climate change, increase electricity access and stimulate economic development,” said. Denmark, together with South Africa, has already developed the South African Wind Atlas and we have seen the value of the tool in the development of the wind energy sector.”
RFA Wants Oregon to Treat All Fuels Fairly
The Renewable Fuels Association (RFA) wants the state of Oregon to treat all fuels fairly. This news release from the group says RFA submitted comments to the Oregon Department of Environmental Quality (DEQ) in response to the agency’s September proposed rule for the state’s Clean Fuels Program (CFP). RFA wants the department to use standards that “support performance-based low carbon fuel programs that are grounded in the principles of fairness, sound science, and consistent analytical boundaries.” However, RFA stated that it could not support DEQ’s proposal because by introducing “concepts that lack scientific integrity and balance into the regulatory framework,” the agency was only creating “stakeholder division and controversy.”
Among other amendments, DEQ proposes to add indirect land use change (ILUC) penalties to the carbon intensity (CI) scores for corn ethanol and other crop-based biofuels. RFA contends that by adding flawed ILUC factors developed by the California Air Resources Board, and ignoring indirect effects for other fuels, the DEQ proposal tips the scales in favor of certain fuels and effectively results in the policy choosing winners and losers. RFA’s comments underscore the fact that the “inclusion of highly uncertain and prescriptive ILUC factors creates an asymmetrical and discriminatory framework for the CFP.”
You can read the entire RFA letter to the Oregon DEQ here.
SG Preston to Build Renewable Diesel Plants
A Philadelphia-based bioenergy company has inked a deal to build renewable diesel plants. This news release from SG Preston says it and Houston-based engineering firm IHI E&C agreed to develop and construct a series of commercial volume, advanced biofuels manufacturing plants, initially in the U.S. Midwest and Canada.
The plants will use proven, commercial scale technologies for the production of renewable diesel and jet fuel targeting U.S. and global industries seeking a volume-based, competitively priced solution to their environmental sustainability mandates.
“IHI E&C is a perfect fit for our U.S. and global strategic vision,” said R. Delbert LeTang, SG Preston President and Chief Executive Officer. “The need to drive thought leadership and momentum toward tangible solutions in the U.S. alternative energy market has become a strategic imperative that we intend to lead in alliance with global blue chip partners in engineering and construction, technology and manufacturing.”
IHI E&C will serve as turnkey EPC to SG Preston’s biofuels initiative, delivering “lump sum,” fixed price engineering and construction, a first in the renewable diesel and jet fuels landscape at commercial scale.
“We have maintained our commitment to focused execution of our volume-based advanced biofuels plan,” LeTang said. “We are extremely pleased to launch this industry-changing initiative in coordination with IHI E&C as a part of our integrated system of global, blue chip partners to rapidly take strategy and concept into design, engineering and execution at commercial scale.”
SG Preston will put its technology at five plants in Ohio, Indiana, Michigan, and Ontario, Canada, each with an initial capacity to produce 120 million gallons of renewable diesel and jet fuel annually.