Time is Now for Non-Renewable Carbon Fee

Joanna Schroeder

Advanced Biofuels USA has gone public with a new idea for capturing externalities of non-renewable fuels for funding needed research – a Non-Renewable Carbon Fuel User Fee. The organization made the announcement during the Congressional Renewable Energy and Energy Efficiency EXPO + Forum that took place in Washington D.C. on July 9, 2015.

“If we’re serious about reducing Climate Change caused by Green House Gases, then we need serious actions,” said Joanne Ivancic, executive director of Advanced Biofuels USA. Advanced Biofuels USA logoIn her presentation, Ivancic laid out the salient points of the plan. “The first steps are including the price of Green House Gas (GHG) effects in non-renewable carbon fuels and committing serious money to renewable fuel research and infrastructure development.”

The Advanced Biofuels USA proposal uses lower priced renewable fuels to drive the consumer market. When the true costs of fuel become apparent, they argue, consumers will demand higher renewable portions of fuels for transportation, power and heat. The fee, which they base on current scientific estimates of climate change effects and mitigation costs, applies to only the non-renewable portion of liquid and gas used for transportation and stationary source combustion.

The fee would be between $50 and $100/ton of non-renewable carbon and translates into only 3.5 percent to 7 percent increases in current transportation fuel prices; or, less than the volatility we commonly experience in gasoline prices. The fee, Ivancic explained, will disappear as lower priced renewable fuels take over the market. Revenues from the fee will be used for two purposes:

  • Renewable Fuel R&D: An immediate Apollo type program should be funded with between 50% and 60% of the fees. It should be administered by the National Science Foundation (NSF) and be focused on getting affordable non-food biomass fuels and gases into the pipeline in less than seven years.
  • Renewable Fuel Infrastructure: The upgraded fuel pumps, decentralized processing/distribution modules, and temporary rebates to people not able to afford the initial lack of renewable fuel would be funded with between 40% and 50% of the fees. These programs would be run by the states.

Ivancic said the proposal will spur investment, innovation, installation and use of renewable choices. “Not only will we see a rapid reduction in GHG emissions,” she said, “but more important, a sustainable renewable fuel industry will create good jobs for Americans in research labs, rural towns, and urban manufacturing plants.”

Collection of this user fee would not require new bureaucracies. Existing consumer point-of-sale fuel and utility tax collections systems (for natural gas) would be used.

advanced biofuels, Carbon, Climate Change

Canadians Support Renewable Fuels

Joanna Schroeder

Canadians believe in renewable fuels. A recent survey finds 88 percent of Canadians believe more renewable fuels should be produced in Canada and that government should do more to promote the industry. The poll was was commissioned by the Canadian Canadians support renewable fuelsRenewable Fuels Association (CRFA) and shows that 85 percent of respondents feel pride in Canada’s biofuels industry.

“This poll reinforces what the CRFA and our members have known for years: renewable fuels are important to and valued by the public,” said Andrea Kent, president of CRFA. “Eight in 10 Canadians believe renewable fuel products are clean, innovative and needed across the country. The renewable fuels industry also provides Canadians with over 14,000 jobs and generate $3.5 billion in economic activity every year.”

One in three Canadians would like there to be more support for renewable fuels, found the survey. In addition, when respondents learned of the current federal biofuels mandates, 31 percent said their impression of government action on climate change improved while sixty-seven percent also support increasing the level of biodiesel from the current mandate of 2 percent to 5 percent.

advanced biofuels, Biodiesel, Ethanol, International

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1The Biotechnology Industry Organization (BIO) has announced six new members of its Industrial & Environmental Section Governing Board. The board members represent cellulosic biofuel producers, renewable chemical developers, and global branded product manufacturers. The new governing board members include: Chairman Christopher Standlee, Executive Vice President, Global Affairs, Abengoa Bioenergy; Vice Chairman Dan Cummings, President, Poet-DSM Advanced Biofuels; Michael Knutzen, Global Procurement Director PET and PlantBottle, The Coca-Cola Company; Tjerk de Ruiter, CEO, Corbion; Eli Ben-Shoshan, Director Strategy M&A Business Development, DuPont Industrial Biosciences; and Neil Goldsmith, CEO, Evolva.
  • Consolidated Edison Development has completed an agreement with Campbell County Wind Farm Holdings to acquire, construct and operate a wind power project on property owned by a group of local farmers in Pollock, South Dakota. The 95 MW wind farm, currently under construction, consists of 55 1.7MW GE wind turbines. The project, which will generate approximately 400,000 MWh of power annually, is scheduled to be operational by the end of this year.
  • Eight utility-scale solar farms are being added to North Carolina’s energy mix. The portfolio totaling 67.3MW equals a reduction of carbon emissions for 7,946,325 million gallons of gasoline consumed. It brings the total North Carolina solar projects to 103.5MW for the partnership between Sol Systems, National Cooperative Bank, and Strata Solar.
  • Methes Energies International Ltd. has announced that it has closed on a $1.25M registered direct placement with a small group of institutional investors. Chardan Capital Markets, LLC, acted as the sole placement agent for the transaction. The funds will be used to start up production of Epoxidized Soybean Oil and Natural Polyol.
Bioenergy Bytes

Businesses Should Lead Way on Clean Power

Joanna Schroeder

Environmental Entrepreneurs (E2) and the American Sustainable Business Council (ASBC) are calling on the National Governors Association (NGA) to implement the federal Clean Power plan. If done correctly, states can reap benefits, say the groups, that come with a clean energy economy. NGA is preparing for its summer conference in West Virginia July 23-25, 2015, around the same time the Environmental Protection Agency (EPA) is set to announce final standards. The Clean Power Plan is the first plan that limits carbon pollution emitted by power plants.

logos“The Clean Power Plan is not just smart environmental policy, it’s a major economic catalyst that will create jobs and drive economic growth,” said Bob Keefe, E2’s executive director. “Governors have a choice: They can implement the plan on their own terms and reap the benefits, or they can skirt the law and get left behind by other states.”

The formal letter also suggests NGA can help states by leading and facilitating engagement between governors, the EPA, state regulators and others.

“The Clean Power Plan will help states grow their economies and create jobs,” said ASBC’s Vice President of Policy Richard Eidlin. “It also gives businesses the certainty and transparency they need to increase investment in clean energy.”

E2/ASBC made their calls to action as some in Congress and industry urge states to skirt the law by failing to develop state plans. For instance, Senate Leader Mitch McConnell in March began urging governors to refuse to implement the standards. However, as the E2/ASBC letter states, steering a state down such a legally reckless path would negatively impact a state’s economy.

According to the letter from E2 and ASBC, the decision to “opt out” of the Clean Power Plan is simply bad for business. “The business community needs a consistent regulatory system based on sound science,” ASBC’s Eidlin added. “The Clean Power Plan provides this. Tackling climate change isn’t just good for the environment – it’s good for businesses, too.”

Clean Energy, Clean Power Plan, Climate Change, Electricity

UNICA: Ethanol Cut 300 Mil Tons of CO2

John Davis

unicaEthanol has cut carbon dioxide emissions by more than 300 million over the last 12 years. Brazil’s sugarcane ethanol industry group UNICA says to get the same results from growing trees, it would be necessary to plant and maintain over 20 years more than 2.1 billion native plants.

Hosted on the site ‘ Verde Ethanol ‘, the Carbonômetro indicates the high potential of sugarcane biofuel helped the country to mitigate CO2 more than the sum of the annual emissions of Argentina (190 million tonnes), Peru (53.1 million tons ), Ecuador (35.7 million tons), Uruguay (7.8 million tonnes) and Paraguay (5.3 million tons).

For the consultant on emissions and Technology of UNICA, Alfred Szwarc, the result shows that sugarcane ethanol produced in Brazil is one of the cleanest energy alternatives commercially available worldwide.

“The reduction is quite significant. The data are of the same order of magnitude as the annual emission of CO2 from Poland (317 million tons), country considered one of the major global emitters of greenhouse gases, “says Szwarc.

The consultant notes that, despite its benefits, the global promotion of ethanol is still limited and needs more incentives, especially in Europe.

Ethanol, Ethanol News, International, UNICA

Alliance Autogas Obtains first EPA certification

John Davis

AllianceAutoGasAlliance Autogas has obtained the first EPA certification for the new Ford Transit.

“Our order queue has been off the charts even when the certification was pending,” notes Ed Hoffman, president of Blossman Services. “The Ford Transit 3.7L Bi-Fuel autogas system conversion by far and away, is Alliances’ largest and most popular platform yet. The number of conversion requests exponentially exceed all prior platform conversion requests we’ve ever seen,” add Hoffman.

The Bi-Fuel system conversion on the Transit is precedent-setting in that no intake manifold drilling, cutting, or splicing of wiring is required. The Ford Transit is the first engine to employ the “Plug and Play” technology, reducing installation time in half, and ensuring consistent performance.

Significant fuel cost savings of 35% or more are achieved without buying a new vehicle. The Bi-Fuel autogas system allows a fleet owner to operate wherever the fleet needs to be and eliminates range anxiety. Multiple tank options are available to meet all range requirements.

The Transit conversion is backed by the Alliance AutoGas 5-year,100,000 mile warranty. New conversions additionally come with the ultra-low emissions Staubli refueling nozzle, the safest and most efficient in the market.

Propane

Corn Growers Rally for RFS in DC

Joanna Schroeder

Hundreds of corn farmers from across America were in Washington D.C. today to rally for the cuts to corn ethanol in the Renewable Fuel Standard (RFs) to be overturned. The Environmental Protection Agency (EPA) proposed cutting corn ethanol by 3.75 billion gallons through 2016. According to the National Corn Growers Association (NCGA), which sponsored the rally, this represents nearly 1.5 billion in lost corn demand.

NCGA RFS Rally“Our message to the EPA is clear and unequivocal: Don’t mess with the RFS,” said NCGA Chairman Martin Barbre, a farmer from Carmi, Illinois. “We are gathered here today because we all understand what’s at stake.”

Barbre spoke with DomesticFuel.com from the Hill this afternoon and said that legislators really don’t understand how the RFS works. When corn growers and others who support the RFS sit down with them and their staff and walk them through the legislation, he explained, and get a better understanding that corn growers can meet the demand for food, fiber and fuel, they support the RFS returning to levels in which they were intended to be as set forth by the legislation.

Rally attendees heard from Senator Mark Kirk, Representative Tammy Duckworth, farmers, and ethanol industry leaders on the importance of ethanol to strengthening rural economies and protecting our environment and national security. Following the rally, corn farmers visited their congressional offices to spend some one-on-one time in dialogue about the RFS, its importance to rural America, and to assure them, stressed Barbre, that the industry will continue to meet and exceed national and global demands.

Senator Mark Kirk (R-Ill) note during his rally remarks, “Illinois farmers export more than a billion bushels of corn annually. That is why I supported them on trade and will continue to support them in the fight for a fair Renewable Fuel Standard.”

Representative Tammy Duckworth (D-Ill) added, “American investors and consumers at the gas pump are better off supporting American jobs and access to clean, secure American energy, rather than Middle Eastern oil. As a veteran and a Member of the House Armed Services Committee, I see renewable, home-grown fuel as not only critical for our environment and our economy, but also as a national security imperative.”

To close the rally NCGA President Chip Bowling, a farmer from Newburg, Maryland, urged farmers to stand up and make their voice heard. “Now is the time for farmers to stand up for your farms, your families, your communities, and our country,” said Bowling. “We must hold Congress to its promises – and hold the EPA to the law.”

Hear more about the rally and why the EPA shouldn’t mess with the RFS by listening to my interview with Martin Barbre here: Martin Barbre RFS Rally Interview

Agribusiness, Audio, corn, EPA, Ethanol, NCGA, RFS

Vaisala: Q4 U.S. Wind Production to Remain Low

Joanna Schroeder

Vaisala is predicting that wind energy performance is expected to remain below normal in most regions into the fourth quarter (Q4). The company said earlier this year there were record low wind anomalies that challenged many wind operators, and due to a persistent El Niño that is forecast to remain in effect throughout the end of the year wind production will be lower than average.

The wind forecast anticipates that power producers in the Northeast, Northwest, and much of the U.S. wind belt will see below average wind speeds in Q4 2015. While the El Vaisala Q4 Wind PredictionsNiño pattern largely has a negative impact, particularly along the Rocky Mountains, it will have a positive impact in some areas with significant wind generation according to the report.

However, the analysis finds the Southwest, Southeast, Indiana, and southern Texas should see above normal wind speeds. California is an especially bright spot with a high likelihood of elevated wind speeds, which should signal a return to smooth profitability for investors following the lows of the last six months.

“For managing portfolio risk, it is imperative to have a detailed understanding of how over or underperformance at each of your project sites fits within the historical record,” said Dr. Jim McCaa, manager of advanced applications at Vaisala. “As acquisition and merger activity increases, the industry also needs to start thinking strategically about the variability of the assets they are looking to buy and how they fit within the existing portfolio.”

Vaisala has been following the evolution of North American wind anomalies in particular detail since the release of its Q1 study revealing 40-year record low wind speeds. The low wind event caused significant reductions in generation for utilities and project owners, a number of whom reported expected shortfalls in quarterly and annual wind production.

The company’s forecast is based on the wide agreement of the atmospheric research community and all the major global weather models that the current El Niño climate signal will continue through the end of the year. The forecast was created using an ensemble approach blending mesoscale model predictions with three of the leading reanalysis datasets, each representing 35 years of climate data.

Clean Energy, Electricity, Wind

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1Gevo, Inc. has announced the appointment of Johannes Minho Roth to Gevo’s Board of Directors. Roth is the Founder and Chief Executive Officer of FiveT Capital Holding AG, a Zurich based independent asset management firm, established in 2006, that specializes in investment solutions for high net worth clients, family offices and institutional investors. Roth is also a member of the Board of Directors for Plug Power Inc. Ganesh “Kish” Kishore who joined the Board in 2008, will resign from the Board after many years of service to the Company.
  • Shunfeng International Clean Energy Ltd. (SFCE) has announced a strategic cooperation agreement with the NARI Group Corporation. Under the agreement, SFCE and NARI Group will focus on joint development and deployment of the cutting-edge technologies and commercialized applications in clean energy sector, total collaboration in the PV power plants development and construction, and co-promotion of smart city and low carbon solutions around the world.
  • Ampt LLC, a leader in power conversion technology for solar power plant optimization, has announced $20 million in Series C funding and $5 million in working capital to support continued growth. The funding will be used to expand production and accelerate global sales and partnership activities, as well as to support ongoing product innovation. The funding round was led by Bohemian Investments – a prominent investment firm named 2014 Investor of the Year by the Colorado Cleantech Industries Association. Existing strategic investor and co-founder of Ampt, Doug Schatz, also participated in the round through the Schatz Family Trust.
  • JuiceBox Energy recently graduated its 50th solar energy storage installer as part of their certified installer network. The Certified Installer Program is building a network of highly qualified solar installers to design and install safe and code-compliant residential energy storage systems. The one day class is a mix of classroom presentation and practical labs and covers battery fundamentals, JuiceBox value streams, site design and finishes with an actual installation. Graduation includes a certification and a commitment by JuiceBox and the installer to work together to bring the JuiceBox system to their home markets.
Bioenergy Bytes

UNICA Joins Global Renewable Fuels Alliance

Cindy Zimmerman

global-rfaThe Brazilian Sugarcane Industry Association (UNICA) with its president Elizabeth Farin has become the newest member of the Global Renewable Fuels Alliance (GRFA).

“Brazil is truly a trailblazer in the global biofuels industry, not only as one of the world’s largest producers of biofuels, but one of the first,” said Bliss Baker, spokesperson for the GRFA. “As the largest ethanol producer in Brazil, we are honoured to have UNICA join our ranks to represent the industry on the world stage.”

UNICA is the largest organization in Brazil representing sugar, ethanol and bioelectricity producers. UNICA members represent more than 50% of all ethanol produced in Brazil and 60% of overall sugar production.

“As a global leader in ethanol production, UNICA is proud to be a member of the GRFA,” said Ms. Farina. “We look forward to working with the other members of over 44 biofuel producing countries to collectively promote the expanded use of renewable fuels throughout the world and advocate for sound public policy and responsible research.”

The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members now represent over 90% of the global biofuels production from 45 countries.

biofuels, Brazil, Ethanol, Ethanol News, UNICA