BIO Analysis: Oil Companies Set to Lose Trillions

Joanna Schroeder

A recasting of oil industry data from a recent NERA Economic Consulting study prepared for the American Petroleum Institute (API) found the oil industry would be economically harmed by more than $12.3 trillion in potential profits in 2015 if the Environmental Protection Agency (EPA) sets the Renewable Fuel Standard (RFS) obligations below statutory levels. The analysis, “Economic Impacts Resulting from Failing to Implement the RFS2 Program,” was conducted by the Biotechnology Industry Organization (BIO), and finds the same result; however, views the information slightly differently.

“The Renewable Fuel Standard was designed to drive investment in renewable fuel production, and some oil companies have partnered with biofuel producers to do just that,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section. “Since many of the oil refiners are publicly owned companies, they have a fiduciary responsibility to their shareholders to maximize earnings and generate a return on that investment.”

dreamstime_xs_23776976Erickson continued, “The oil industry reported earnings of a paltry $77.2 billion for 2014, as prices at the pump fell during the year. But if EPA sets the RFS at the statutory volumes in 2015, the industry would be able to earn $12.3 trillion in profits this year by again raising the price of gasoline and diesel. The oil companies owe it to their shareholders to urge EPA to set RFS volumes at the statutory levels.”

According to BIO, the oil industry study from NERA Economic Consulting assumes that if EPA sets the RFS at levels established by the U.S. Congress, oil refiners will elect to export their products rather than sell them to American drivers. The resulting artificial shortage of fuels within the U.S, NERA’s proprietary economic modeling predicts, will raise gasoline and diesel prices to “outrageously high” levels – $93.64 per gallon for regular gasoline and $103.00 per gallon for diesel. NERA’s data indicates that ethanol is the lowest cost fuel component and that higher renewable fuel blends such as E85 would be the lowest priced fuel choice for consumers. Read More

BIO, biofuels, E85, Ethanol, Oil, RFS

Alstom Supports Access to Renewable Energy

Joanna Schroeder

In support of offering more renewable energy to Zambians, Alstom is financing an energy kiosk project in Zambia to enable people network access through cheaper renewable electricity. Equipped with solar panels, the kiosk will be capable of autonomously producing its own energy and will enable electricity to be supplied to around 500 people from the North Kariba region.

The funds for the project were made available by the savings from the “We share the power program,” an initiative to reduce electricity consumption around the world. The energy kiosk project is being conducted in partnership with the University of Seattle and the “Kilowatts for Humanity” association.

Child-using-an-energy-kiosk-in-Kenya-300

A child using an energy kiosk in Kenya.

“Today families are using poor quality, expensive and polluting lighting, and have to travel many miles to recharge their electrical equipment,” explained Antoine Desclos le Peley, the “We share the power” project manager. He notes that because of the energy kiosk, the inhabitants of the North Kariba region will be able to charge a portable battery that will provide them with electricity at home at a lower cost. Work is planned to start in April 2016.

According to Alstom, the provision of sustainable lighting has a positive impact on families’ daily life, by enabling them to continue their activities during the evening, either to work or to study. Managed by an entrepreneur who comes from the region, the energy kiosk is also a profitable activity that contributes to the development of the local economy. In time, this type of installation will be able to supply electricity to schools or hospitals.

“This is a project designed to stand the test of time,” added le Peley. “With ‘We share the power,’ we are demonstrating that Alstom responsibly manufactures sustainable products. Beyond energy consumption management, we are also taking on another challenge, namely to promote access to energy, which is a real lever for development.”

Clean Energy, Electricity, Solar

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1On Wednesday morning, September 23 from 9 am-noon, the GEA Geothermal Energy Expo, being held in the Tuscany Ballroom of the Peppermill Resort and Casino in Reno, Nevada, will be free and open to the public. The GEA Expo floor features projects, equipment, services and state of the art technology in the geothermal community. Pre-registration is encouraged but not required.
  • Step through the trunk of a giant Cottonwood to Hastings Museum’s interactive Nature Nook, which opens Friday, Sept. 25. Previously the Groundwater Discovery Adventure, the newest renovation takes visitors on an interactive journey through the natural environments of Nebraska. Visitors will explore prairie habitats up close, and investigate human impact on nature in both rural and agricultural settings. Nebraska Ethanol Board is a proud supporter of the new Nature Nook and will be greeting museum patrons during a special member exhibit opening Thursday, Sept. 24 from 3:30 to 8:30 pm.
  • Employees at the Philadelphia Zoo can now better serve the thousands of guests who visit each week with the help of 10 new solar-powered golf carts, donated by the Green Mountain Energy Sun Club. The trams, funded by a $100,000 grant from the Sun Club, enhance the zoo’s existing sustainability initiatives while enabling zoo employees to get around the 42-acre park more quickly and efficiently. Each solar-powered golf cart can generate enough clean energy to drive more than 1,600 miles annually, which is about the same as driving from the zoo to the Statue of Liberty 16 times!
  • Energy Datametrics’ proven energy-saving technology is now being offered through a smartphone app with their first consumer-facing product, Homeselfe, an app that gives energy conscious homeowners practical ways to reduce their overall consumption through a quick home evaluation. The free tool provides homeowners with a clear picture of their energy use, a path to a more energy efficient home, money-saving tips, energy rebate information and access to qualified local contractors.
Bioenergy Bytes

Algenol’s Algae-based Ethanol to Be Sold Via Protec

Joanna Schroeder

Protec Fuel Management has taken another innovative route to bring ethanol to consumers. The company has signed an agreement to market and distribute Algenol Biotech’s algae-based ethanol being produced in Fort Myers, Florida. In addition, Protec will purchase 18 million gallons per year from Algenol’s commercial plant expected to be online in 2016 and distribute the fuel as E15 and E85 in both retail stations for consumers and stations dedicated to fleets.

Algenol makes ethanol from algae“This alliance is a logical step for Algenol as our commercial fuels are coming on-line,” said Algenol Founder and CEO Paul Woods. “We are excited about partnering with a successful, innovative renewable fuels distributor, who is knowledgeable in the regional and Florida ethanol market and has the expertise and relationships to grow the partnership nationally.”

According to Algenol, the partnership will enable them to leverage Protec’s established network of retail clients for the distribution of Algenol’s E85, E15 and other advanced biofuels. While the partnership will initially focus on Florida, the agreement provides for expansion into a national partnership scope as Algenol develops projects in other markets. Algenol’s Florida-based production facilities will provide both parties and their customers with a substantial margin advantage versus fuels shipped from out-of-state.

“We know that advanced ethanol is a key element of the future of fuels, and we are excited to partner with Algenol, the leader in the development of algae-based fuels,” added Todd Garner, CEO, Protec Fuel. “The key components and priority of ethanol’s use are sustainability, cleaner air, and to provide the public with lower-cost fuel,” he said. “To be able to offer a fuel that can accomplish the three key components only bolsters this advanced biofuel’s future.”

This agreement follows a series of successful commercialization milestones achieved by Algenol, which include its pathway approval by the EPA in December 2014, its organism approval by both the state of Florida and by the EPA in the same year, and the June 2015 completion of its 2-acre commercial demonstration module funded in part by a $25 million DOE Recovery Act grant. Algenol is producing ethanol meeting the D4806 ASTM specifications on a daily basis, and it can be sold commercially as E85.

advanced biofuels, algae, Cellulosic, E15, E85, Ethanol

Glycerol Recycled into Biodiesel Catalyst

John Davis

Hutchings-CCI1Researchers in the United Kingdom have found a way to recycle a biodiesel by-product back into a catalyst to make the green fuel. This article from Cardiff University says its scientists turned glycerol into methanol.

To achieve this, the researchers reacted glycerol with water, to provide the element hydrogen, and a magnesium oxide (MgO) catalyst. The reaction involved a simple one-step process and could be performed using mild conditions.

Using the recycled methanol, the researchers estimate up to a 10 per cent increase in biodiesel production, which they claim would be very helpful to industry at this point in time.

The work is currently in its early stages and in future studies the researchers will look to optimise the design of the catalyst and significantly increase its activity and selectivity.

Lead author of the study Professor Graham Hutchings, Director of the Cardiff Catalysis Institute, said: “Biodiesel manufacture is a growing part of the EU fuel pool, with statutory amounts being required to be added to diesel that is derived from fossil fuels.

“We’ve provided unprecedented chemistry that highlights the potential to manufacture biodiesel in a much more environmentally friendly, and potentially cheaper, way, by converting an undesired by-product into a valuable chemical that can be reused in the process.”

Biodiesel, International

Two Wood-Burning Plants Being Built in Georgia

John Davis

GeorgiaFlag1An Alabama company is building two wood-burning electricity plants in Georgia. This article from the Athens (GA) Banner-Herald says state environmental officials have approved one of the two applications for the GreenFuels Holding Company’s plants expected to produce a total of nearly 140 megawatts of electricity.

The company filed its application for a 58 megawatt plant near Colbert about two weeks ago. State officials won’t begin to evaluate it for another couple of weeks, until a 30-day window has passed when the public can make formal comments, said Eric Cornwell, the Air Quality Branch’s program manager for stationary source permitting.

GreenFuels has a policy to not comment publicly to media, said GreenFuels vice president Steven Ingle.

But much of what the company has planned is outlined in documents on file with the state detailing their predicted emissions of pollutants, including sulfur dioxide, carbon monoxide and hydrochloric acid.

biomass

Illinois Corn Working to Support #Ethanol, E15

Joanna Schroeder

Ken Hartman-2I stopped by the Illinois Corn booth during the Farm Progress Show and had the opportunity to speak with Kenneth Hartman, an Illinois corn, soybean and wheat grower. He gave me an update on the their efforts to increase mid-level ethanol blends across the state. One such initiative is working with key players in Chicago to get 150 E15 stations up and running in the city. A piece of legislation is sitting with the Alderman and the mayor and Hartman hopes Mayor Rahm Emanuel will sign on the line for the E15 roll out yet this year.

Speaking of E15, Harmann said they are working with retailers across the state to build the infrastructure. They have been working with the American Lung Association and the Illinois Corn Marketing Board has allocated money to help with infrastructure through the Prime The Pump program. This program, he noted, provides matching funds for USDA’s BIP program. Ag Secretary Tom Vilsack recently announced the allocation of $100 million in program funds.

Other initiatives include working with pump manufacturers to get equipment standardized and approved for E15 as well as consumer education.

To learn more about Illinois Corn’s ethanol initiatives, listen to my interview with Ken Hartman: Ken Hartman, Illinois Corn Interview

Check out the Farm Progress Show photo album.

Agribusiness, Audio, E15, Ethanol, Renewable Energy

Orrie Swayze Says E30 is a Child’s Best Friend

Joanna Schroeder

According to the Clean Air Act, Memorandum 1A it is legal for all cars to use E30, a blend of 30 percent ethanol, 70 percent gasoline, according to Orrie Swayze, a long-time ethanol advocate. He is working along side the South Dakota Farmers Union to encourage drivers to use E30 – especially for the health benefits higher blends of ethanol offer to children.

20568763580_03f060c94f_zSwayze says the language has always been there, but “like the bible is subject to interpretation”. “It’s clear to me, says Swayze, “that it is legal to use E30 in a standard vehicle because you aren’t damage emissions equipment or degrading emissions.”

E30 is often known in the industry as the “sweet spot” and according to the National Renewable Energy Lab (NREL) is volatility neutral. NREL also classifies E30 as a super premium fuel. Ethanol runs cooler, provides better combustion and thus more power, explains Swayze.

Swayze along with the the South Dakota Farmers Union have created a special order of business to encourage farmers, and drivers, to use E30. Click here to read the proclamation.

But he notes that the biggest winners of ethanol use is not actually the drivers, but our children. E30, says Swayze who quoted an American Medical Association research report, helps to nearly eliminates engine created benzene and other known human carcinogenic emissions that destroy brain matter in growing children. He has outlined the information on his website, www.saferair.net as an educational mechanism for consumers.

To learn more about the use of E30 and how it helps reduce air pollution, listen to my interview with Orrie Swayze: Orrie Swayze Says Use E30 for the Children

2015 ACE Annual Meeting Photos

ACE Ethanol Conference, Audio, Education, Ethanol, Renewable Energy

EV Fast Chargers Come to Québec

Joanna Schroeder

New fast chargers for electric vehicles are now available in Québec with a 400-V fast-charge station and four 240-V charging stations as a result of a new partnership between the Electric Circuit and Magog’s Carrefour Santé Globale (CSG). This is the first public fast-charge station in the Estrie region. This initiative was made possible by Nissan Canada.

borneaquariumce“We salute the initiative of Carrefour Santé Globale that allows Magog to be the first city in the region to offer a fast-charge station for drivers of all-electric vehicles, in addition to playing a strategic role in the Québec-Vermont charging corridor,” said France Lampron, Director – Transportation Electrification at Hydro-Québec on behalf of the founding partners of the Electric Circuit. “We are pleased to have such a dynamic partner contribute to making the Electric Circuit the most extensive public charging network in Québec.”

The fast-charge network is growing rapidly and this new charging station is an additional point of service along the Montréal-Vermontcharging corridor. The Electric Circuit is the largest public charging network in Québec. A total of 34 charging stations are now in service in the Estrie region including 11 in Magog, 1 in Racine and 22 in Sherbrooke.

“We are delighted to offer these new public charging stations. This initiative reflects Carrefour Santé Globale’s commitment to offer an array of services to its customers and ties in with our sustainability strategy,” added Gilles Bélanger, General Manager of CSG. “In addition, we are proud to participate in the efforts of the City of Magog to reduce its greenhouse gas emissions.”

Alternative Vehicles, Electric Vehicles

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1According to GTM Research’s latest report, “PV Balance of Systems 2015: Technology Trends and Markets in the U.S. and Abroad,” average global PV system installed costs will fall from $2.16 per watt in 2014 to $1.24 per watt by 2020, a 40 percent decline. Costs will continue to vary by region and market segment, but a combination of balance-of-system innovations will drive cost reductions across the board and ultimately fuel the global solar market to move well past 100 gigawatts by 2020.
  • The European Wind Energy Association has appointed Giles Dickson as its new Chief Executive Officer. Dickson was Vice President of Global Public Affairs at Alstom before joining EWEA. Prior to this, he was a civil servant in the UK government for over 15 years.
  • PHG Energy has acquired the assets of ARiES Energy of Knoxville, TN adding significantly to its established business lines and formalizing the ongoing partnering relationship between the companies. ARiES Energy, a solar, lighting and energy efficiency company, has successfully provided solar photovoltaic, LED lighting, power conditioning and energy efficiency systems for commercial businesses, residences and municipalities in the Southeast.
  • A coalition of more than 400 organizations and leaders delivered a historic letter to the White House calling on President Obama to stop new federal fossil fuel leasing on public lands and oceans in the United States. The letter argues that, by keeping publicly owned fossil fuels that haven’t already been leased to industry in the ground, President Obama can keep nearly half of the potential emissions from all remaining U.S. fossil fuels, up to 450 billion tons, from the global pool of potential carbon pollution.
Bioenergy Bytes