RFA Wants Calif. to Use Real-World Ethanol Data

John Davis

RFANewlogoA group advocating for ethanol wants the State of California to use real-world data when it comes to carbon analysis. This news release from the Renewable Fuels Association (RFA) says the group is calling on the California Air Resources Board (CARB) to revise its Low Carbon Fuel Standard (LCFS) re-adoption proposal to reflect recent scientific advances and new empirical data regarding the actual impacts of biofuels on global land use patterns.

In comments submitted to CARB Chairwoman Mary Nichols, RFA noted that while steps have been taken to slightly improve the program in the re-adoption proposal, RFA remains “deeply concerned by several aspects of the proposal,” noting that CARB’s inclusion of a flawed indirect land use (ILUC) change analysis “threatens the long-term durability of the LCFS program.”

RFA points to the central role that grain-based ethanol has played in LCFS compliance over the past four years, noting that nearly 60 percent of all LCFS credits were generated by ethanol. Yet, despite the vital importance of grain ethanol to the program, the proposed ILUC penalty assessed against corn ethanol “will make the use of most grain ethanol infeasible for compliance as early as 2016.”

The comments explain that “CARB’s ILUC analysis remains technically and methodologically flawed, and grossly overstates the land use impacts associated with biofuels expansion.”

RFA points to a recent study by Iowa State University that finds the world’s farmers have responded to increased demand for crops by using existing cropland more efficiently, not by converting native forest and grassland to cropland, as assumed by CARB.

Ethanol, Ethanol News, Indirect Land Use, RFA

2015 Energy Industry Update Released

Joanna Schroeder

ScottMadden Energy Industry UpdateThe 2015 edition of The Energy Industry Update has been released by ScottMadden, an energy consulting firm. The report points out as market changes, regulatory processes, and technology evolution unfold, energy and utility companies will face them and adapt. Themed “Changes: Turn and Face the Strange,” this issue surveys a broad array of strategic issues, including:

  • Insights drawn from a first-hand look at developments and lessons learned in Germany. The Solar Energy Power Association and ScottMadden recently partnered to lead a fact-finding mission to uncover the story behind the headlines;
  • A review of the U.S. Environmental Protection Agency’s proposed Clean Power Plan designed to reduce greenhouse gas emissions from existing power plants. The report examines its timeline, implications, and issues in the wake of ongoing political and regulatory activity and a groundswell of comments from all sides; and
  • A view of how utilities are looking with interest at electric vehicles, hoping to increase energy sales and burnish their brands. The report examines customer and vehicle characteristics and some generic business models being tested in this growing market.
  • A review of natural gas prices and gas production from shale formations. The report considers the latest dynamics in this market, including what (if any) impact low oil on which prices are having.

“For months, indeed years, we have been anticipating major changes in the industry from a number of factors—low natural gas prices, technology advancement, and profound regulatory changes,” said Greg Litra, partner and energy, clean tech, and sustainability research lead at ScottMadden. “After being in the distance, they are now on the doorstep, and energy and utility companies are responding to these changes by testing new business models and adapting to or embracing new technologies.”

Clean Energy, Electric Vehicles, Energy

Report: Offshore Wind Policy Not Working

Joanna Schroeder

According to a new report fueled by concerns that the Cape Wind project may never see fruition, U.S. offshore wind policy is not working. “In Up in the Air: What the Northeast States Should Do Together on Offshore Wind, Before It’s Too Late,” published by Clean Energy Group (CEG) and Navigant Consulting, tells the story of how the Cape Wind project is struggling against a decade of opposition. The report concludes the project’s difficulties highlight a larger policy problem—it is almost impossible for a single state to jump start the entire U.S. offshore wind industry.

Up in the AirThe report recommends a multi-state collaboration among states to create stronger and consistent regional policies, financing actions and permitting across the Northeast states.

“Cape Wind was a battle of the wallets, and the fossil fuel wallet evidently won,” said Lewis Milford, president of Clean Energy Group and the lead author of the report. “But there is a larger and more important story behind this controversy. If Northeast states want to reduce the costs of these projects and create offshore wind jobs, they must develop clear and consistent policies across the region, to give developers good reason to build projects here. If they don’t act together soon, they will lose this clean energy resource for decades to come, which will be bad for the economy and the environment.”

The paper recommends the states consider seven multi-state policy areas for regional action.

  1. Regional Offshore Wind Target. The establishment of a practical regional target (or target range) for offshore wind capacity would produce meaningful economic development and environmental benefits by creating a clear demand signal to developers.
  2. Coordinated Policy Incentives. Individual state policy drivers, including any incentives for developers, should be consistent across the region to drive demand and produce cost reductions over time through scale up of the offshore wind resource.
  3. Financing. States should develop new, regional financing mechanisms for regional and single projects, including use of bonds and green bank financing.
  4. Procurement. States should jointly procure power from one or more large offshore wind projects to reduce costs and create a reliable pipeline of demand for project developers.
  5. Economic Development. Coordinated, multi-state, economic development strategies rather than purely competitive action would spur economic development activity in the region through the creation of clean energy jobs and potentially new manufacturing facilities.
  6. Transmission. States should develop joint public funding of regional transmission and interconnection facilities associated with regional projects.
  7. Permitting. It is essential to the success of the multi-state projects that the policies ultimately adopted for permitting these facilities be standardized.

Read More

Electricity, offshore wind, Renewable Energy, Research

BioEnergy Bytes

Joanna Schroeder

  • http://energy.agwired.com/category/bioenergy-bytes/Mainstream Renewable Power has announced the launch of a pan-African renewable energy generation platform, Lekela Power, that it has formed along with Actis, a global pan-emerging market private equity firm. Lekela Power will provide between 700 and 900 megawatts of wind and solar power across Africa by 2018.
  • Vaisala is providing measurement systems and services to Finnish wind power company, Puhuri Oy, which operates three wind projects and is developing several more in Finland. The agreement includes two Vaisala Triton Sonic Wind Profilers that will be installed in northern Finland, as well as an annual SkyServe maintenance and data management contract. Furthermore, Vaisala will deliver the planning and wind resource evaluation services as part of the measurement campaign to help Puhuri better assess the performance potential of its proposed wind farms.
  • SunEdison, Inc. has announced the completion of a 677 kilowatt ground-mount solar photovoltaic (PV) system that will provide energy for the AT&T materials distribution facility in Lancaster, Texas. The system is constructed using 2,000 high-efficiency SunEdison solar panels. SunEdison is also working with TerraForm Power on this project.
  • Vivint Solar has announced that it has extended job offers to all 20 graduates of the United States Department of Energy’s ‘Reach for the Sun’ pilot program at United States Marine Corps Base Camp Pendleton. ‘Reach for the Sun’ is an intensive solar workforce training designed to help place qualified transitioning military service members into the solar industry. ‘Reach for the Sun’ pilot program was offered to 20 transitioning Marines and included 4 weeks of intensive photovoltaic coursework. Each graduate gains the skills to size and install solar panels, safely connect electricity to the grid, interpret and comply with local building code requirements. Additional pilot courses will be offered at United States Army Fort Carson in Colorado and Naval Station Norfolk in Virginia this year.
Bioenergy Bytes

USGC Helped Move DDGS Exports in 2014

Cindy Zimmerman

usgc-winter-grayThe U.S. Grains Council (USGC) held its winter meeting last week in Costa Rica where more than 250 delegates met to take a look back at last year and assess export opportunities.

Chairman Ron Gray says one of big issues of 2014 was with the ethanol co-product distillers grains (DDGS) and China. “At the end of the year, our exports were one of the highest years for DDGS on record,” said Gray. “The Grains Council was instrumental in mitigating that process so that trade can continue.”

Gray, who is a farmer from Illinois, believes it’s important for producers to be involved in trade policy. “I think combines would be easier to fix than trade policy,” he said. “We try to address the next problem so we can keep trade moving.”

Gray says U.S. sorghum picked up some exports to China last year to pick up the slack caused by the biotech trait issue with corn, which allowed them to remain active in the market, but ultimately it’s the growing demand for corn that is benefiting farmers back home.

corn, Distillers Grains, Ethanol, Ethanol News, Exports, USGC

USDA Secretary Returns to Commodity Classic

Cindy Zimmerman

classic14-vilsack-stageU.S. Secretary of Agriculture Tom Vilsack will visit the Commodity Classic next week for the sixth year in a row to address the annual convention and trade show for corn, soybean, wheat and sorghum growers. The secretary will deliver a keynote address to several thousand farmers and ag allies during the event’s General Session on Friday, Feb. 27, in Phoenix, Arizona.

“We’re thrilled to be welcoming Secretary Vilsack back to Commodity Classic,” said National Corn Growers Association President Chip Bowling. “With so much going on in our nation’s capital that impact their lives, the audience will be eager to get his report on the top issues facing our growers, such as trade and the farm bill. He always provides an experienced, deep-inside-Washington perspective.”

The 20th annual Commodity Classic takes place Feb. 26-28, 2015, at the Phoenix Convention Center.

Ag group, corn, USDA

The Andersons Grain Group Head to Retire

Cindy Zimmerman

Dennis Addis (left) and Neill McKinstray

Dennis Addis (left) and Neill McKinstray

The Andersons, Inc. Grain Group President Denny Addis has announced plans to retire in May. According to the company, Ethanol Group president Neill C. McKinstray will assume leadership over both groups at that time.

“Denny has a stellar 43-year record with The Andersons and during his tenure has exhibited faithful service and exceptional leadership,” says Hal Reed, Chief Operating Officer.

Addis began his career with the company in 1971 bagging fertilizer and loading trucks as a part-time employee while a student at the University of Toledo. He spent all but three of his 43 years in the Plant Nutrient Group, ultimately serving as the group’s president for 11 years. He has served as the president of the Grain Group since 2012.

McKinstray is a 39-year veteran with The Andersons, including more than 30 years working at increasing levels of responsibility in the Grain Group. In 2011 he was named as President of the newly-formed Ethanol Group, which he has led with great success.

Agribusiness, Ethanol, Ethanol News

Montana Group Turning Waste into Biodiesel

John Davis

fullcirclebiofuelsA group from Montana is turning waste into biodiesel. This story from KBZK-TV in Bozeman says Full Circle Biofuels in that city is making the used cooking grease from restaurants into the green fuel.

“Restaurants will have this and they will dump their used fryer oil into here. And then we’ll come and pump it out of this little hole on top whenever they’re full,” Full Circle Biofuels director Jesse Therien said.

Therien turns that waste into something people can use: biodiesel. It’s an alternative to petroleum-based diesel, with some added benefits like reduced emissions.

“It’s biodegradable, it’s nontoxic, it’s renewable and ours in particular is made from recycled materials,” Therein said.

Therien collects used fryer oil from more than 60 restaurants in Bozeman and Belgrade. “Right now we’re bringing in about 4,000 gallons a month but that is likely to double in the next little while. We have all the Walmarts in the state and then Cody, Wyoming as well,” he said.

The company says a school district and the city there have approached it to make biodiesel to go into buses and snow plows.

Biodiesel

Golden Grain Marks Billion Gallons of Ethanol

Cindy Zimmerman

Golden Grain Energy in Mason City, Iowa is celebrating the production of its one billionth gallon of ethanol this month.

gge-billion-shirts“This is a huge occasion for the plant, the staff, and the community as a whole,” said Chad Kuhlers, Chief Operations Officer of Golden Grain Energy. “I believe we are the first single location ethanol plant in the country to reach this production mark and it couldn’t have been done without the support from the shareholders, community and the great work from our employees over the years.”

The ethanol plant, which started production in December 2004, celebrated the milestone on Monday during its annual meeting with special guests including Iowa Secretary of Agriculture Bill Northey and Senator Chuck Grassley (R-IA). Plant employees wore special t-shirts to note the special occasion.

gge-grassley“This achievement represents a lot of work from farmer to producer to truck driver. Each stage of production leads to a tremendously beneficial final product,” said Sen. Grassley.

“This remarkable milestone by Golden Grain Energy is a great opportunity to celebrate the tremendous impact this plant and the 42 other ethanol refineries have had in reducing our dependence on foreign oil, protecting our environment and boosting the Iowa economy,” added Northey.

That billion gallons of ethanol represents over 351 million bushels of corn and a nice boost for the local economy, according to American Coalition for Ethanol Executive Vice President Brian Jennings. “Golden Grain Energy has … paid out more than $2 billion dollars to corn farmers, suppliers and service providers, and employees, and returned nearly $137 million dollars to its investors,” said Jennings in a congratulatory statement.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen was on hand at the company’s groundbreaking ceremony in 2003. “It has been a privilege to watch the company grow and thrive and I can’t wait to see where they will take it from here,” said Dinneen.

Golden Grain Energy has a nameplate capacity of 115 million gallons per year.

ACE, Ethanol, Ethanol News, RFA

Murphy USA E15 Expansion Brings Call for Law

John Davis

beale1The announcement by Murphy USA to offer a 15 percent blend of ethanol, E15, at more locations in Chicago is prompting a city councilman calling for an ordinance to support renewable fuel efforts in the city. Alderman Anthony Beale has been working for some time now to get an E15 ordinance on the book.

“While I welcome E15 to our region, it pains me that due to our 7-month process of debate, Chicago retailers have not had the ability to offer E15 first and therefore to more ably compete with suburban sellers. This news, as welcome as it is, underscores the need to make sure the market is similarly open to retailers in the city, where Big Oil currently has the ability to block this choice of fuels from the market.

“As a national distributor and retailer, Murphy USA can offer whatever products they like. Chicago retailers, on the other hand, are at the mercy of the Big Oil companies, who as we have seen through the thousands of dollars they’ve spent on ads, will go to any lengths to keep drivers dependent on fossil fuel, whatever the consequences for the health of our air and residents.

“It’s time to end the monopoly and stranglehold of the oil companies – who keep us dependent on foreign oil and give us high prices and petcoke in return. It’s time – for the good of Chicago’s air, for the good of Chicago’s health, for the good of Chicago’s beleaguered filling-station owners – to pass the Clean the Air with E15 ordinance.”

Beale’s ordinance has enjoys some pretty widespread support, including backers from the American Council on Renewable Energy, American Lung Association in Illinois, Chicago gas station owner Luke Casson, as well as several other biofuel, agribusiness and environmental groups.

E15, Ethanol, Ethanol News, Government, Legislation