The Evolution of Minnesota’s Ethanol Industry

Joanna Schroeder

The Minnesota ethanol industry is evolving even in the face of growth challenges including continued uncertainty around the Renewable Fuel Standard (RFS). Since 2007 the industry has improved by leaps and bounds in terms of technological advancements, energy efficiency and sustainability.

“Minnesota ethanol producers are continually evolving with respect to the use of technology and processes to decrease the inputs of energy and water while increasing their output of ethanol and co-products such as DDGs and corn oil,” explains Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association.

Water usage gas v ethanolAccording to a 2011 report from the Argonne National Laboratory, ethanol producers have cut water use in half within a 10-year period. In fact, Rudnicki notes that some producers are using less than two gallons of water to produce 1 gallon of ethanol. When comparing water use with the production of oil, depending on where the oil is extracted, oil production can require more than seven times that much water to produce one gallon of gas. Other ways ethanol producers are infusing sustainability within water use is by using storm water and treated municipal wastewater.

Specifically, the Al-Corn Clean Fuel ethanol plant has completely eliminated any process water discharge. Randall Doyal CEO of the Claremont, Minnesota-based plant says, “This cut our water consumption down to just over two gallons per gallon of ethanol. The water that is used is for cooling and is evaporated, so it returns to the atmosphere to recycle back as rain. We continually recover water in the process to reuse again and again.”Read More

biofuels, Ethanol, Renewable Energy

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFRenewable energy expert Deyang Qu has been named as the Johnson Controls Endowed Professor in Energy Storage Research, a collaborative appointment between the company, the University of Wisconsin-Milwaukee and the Wisconsin Energy Institute in the University of Wisconsin-Madison’s College of Engineering. He begins his new duties in Milwaukee January 15, 2015.
  • Boralex Inc. has announced that its subsidiary Boralex Europe S.A. has completed commercial commissioning of the Fortel-Bonnières wind farm with a total installed capacity of 23 MW. In addition, construction of the St-François 23 MW wind farm is progressing on schedule, with commissioning planned for the first quarter of 2015. Also, in Canada, Boralex and partner Côte-de-Beaupré RCM have obtained government approvals to commence work on the Côte-de-Beaupré community wind power project. Commissioning of its 25 MW is slated for late 2015.
  • eSolar, a leading developer of modular, scalable concentrating solar power (CSP) technology, has been contracted by Aalborg CSP A/S (Aalborg, Denmark) to provide a solar collector system (SCS) product in support of a recently announced commercial expansion of Sundrop Farms’ greenhouse facility in Port Augusta, South Australia. Construction of the expansion facility begins this month and is due for completion in 2016.
  • The Geothermal Energy Association is hosting its 2015 State of the Geothermal Industry Briefing on Tuesday, February 24, 2015 in Washington, D.C. Register before the end of 2014 to receive $20 off the cost of registration. The Briefing will provide an update on the U.S. and international geothermal industry featuring release of the 2015 Annual Geothermal Industry Update and presentations and panel discussions by key leaders in U.S. and international development, finance, technology, policy and regulatory issues.
Bioenergy Bytes

Hydrogen Fueling Arrives in Sacramento, CA

Joanna Schroeder

The Ramos Oil Company located in West Sacramento, California is now offering drivers the ability to fuel their hydrogen powered vehicles. The new hydrogen station is equipped with state-of-the-art technology developed by Linde North America.

To mark completion of its retail hydrogen fueling station, Ramos held a ribbon cutting ceremony at the site and hosted representatives of Linde and local and state dignitaries — including Cliff Caldwell, Senior Vice President and General Manager for Bulk Markets at West Sacramento Hydrogen Fueling StationLinde; Nitin Natesan, Business Development manager for Linde Hydrogen Fueling; Mark Johannessen, Mayor Pro Tem City of West Sacramento; Bill Elrick, California Fuel Cell Partnership; Commissioner Janea Scott, California Energy Commission; Phil Serna, California Air Resources Board; and Fred Joseck, Department of Energy.

“We are thrilled to be working with Linde on this project and very impressed with the exciting technology they brought to us,” said Kent Ramos, president of Ramos Oil Company, one of the largest Hispanic-owned companies in the U.S. “We have been serving the Sacramento Valley market with a variety of fuels for over 60 years. The prospect of hydrogen’s zero emissions technology fits perfectly into our multi-fuel platform concept and I believe will prove that hydrogen has a place in the transportation fuel mix.” Ramos Oil is one of the first petroleum retailers in California to embrace clean fuels. In addition to conventional fuels, the company offers bio-diesel, ethanol-85, methanol and now hydrogen. The company also uses solar panels to power the entire facility.”

While it is difficult to project how much business the new hydrogen fueling station will do in the next few years, it is expected that thousands of hydrogen fuel cars will be on the road in the state by 2020, according to OweHo estimates.

“Linde is building hydrogen stations today that can meet this projected rapid growth in the near future without the need for extensive station upgrades,” said Linde’s Natesan. “It used to be a chicken and egg question, but realistically the stations must come first so an infrastructure is in place for the initial consumers.”

At the heart of the hydrogen fueling system is the Linde IC 90 ionic compressor — the next generation of hydrogen compression technology which enables higher throughput and enhanced back to back fueling. “With this compressor, Linde has made a valuable contribution to the ongoing enhancement of today’s hydrogen fueling infrastructure,” explained Mike Beckman, head of H2 Fueling.

In as written statement, West Sacramento Mayo Cabaldon noted, “This project not only serves as a hub for hydrogen fuel delivery, but highlights the importance of providing an array of fuels for the future of urban transportation. The station is an asset to both our residents and the region as a whole.”

Alternative Vehicles, Hydrogen

Genera Gets Financial Boost for Biomass Operations

John Davis

genera1Biomass supply company Genera Energy is getting some financial help to expand its biomass operations. This company news release says WindSail Capital Group is investing in the company, giving Genera the resources to scale up its energy crop production and supply chain operations, further expand the portfolio of biomass feedstocks and geographies it covers, and expand the working capital of the company as a whole.

“We look forward to working with the WindSail Capital team, and we appreciate their recognition of the complexity and value of the upstream supply of biomass for a variety of fast growing bio-based markets,” said Kelly Tiller, Ph.D., CEO and president of Genera Energy Inc.

“We see Genera Energy as building the key supply chain infrastructure to help accelerate the bioenergy industry,” said Michael Rand, co-founder of WindSail Capital Group. “As a services business with a market leading position and strong growth prospects, Genera is a terrific fit for our type of capital.”

Genera officials say the investment is not just a significant achievement for Genera, but an important milestone for the bio-based economy as a whole.

biomass

Ontario Biodiesel Plant to go to Highest Bidder

John Davis

glb-logoA Southern Ontario biodiesel plant is going on the auction block. This article from Canada’s Sun News says the $50-million Great Lakes Biodiesel (GLB) plant went receivership and will be sold to the highest bidder.

It’s the latest chapter in the rocky history of Great Lakes Biodiesel, which opened the production facility in Welland at the end of 2012 to convert canola and soybean oil into biodiesel.

Luxembourg-based investment company Heridge SARL launched the court case because it says it was only repaid half of a $20-million loan used to get GLB’s Welland plant off the ground.

Heridge has now submitted a bid to purchase all assets of GLB, including the Welland plant, which isn’t in operation but still employs 16 people.

The plant is being maintained so it can immediately go back into production once there’s a new owner.
“The plant itself, according to the folks I’ve spoken to across the industry, is state-of-the-art and is a very valuable asset,” Welland MP Malcolm Allen said.

Government officials say GLB was relying relying government money too much to make its business model work.

The article adds that Heridge could take over ownership and would plan to keep the plant running.

Biodiesel, International

Book Review: Flight Behavior

Joanna Schroeder

I recently read the novel Flight Behavior by Barbara Kingsolver, a book about climate change. When I first began reading the book I had no intentions of doing a review, but as I got deeper into the book, and the characters voiced their opinions, about media in general, my intentions changed.

The premise of the book is that millions of monarch butterflies migrate to a rural area in Tennessee for the winter instead of going to their usual location in Mexico. After they are Flight Behaviordiscovered by Dellarobia on her family’s land, and the media gets involved with a news story, people from around the world begin showing up including a scientist. The next several months the scientist, Dr. Ovid Byron, and his team attempt to ascertain why the monarch butterflies wintered in Tennessee.

There have been discussions in the media and scientific journals about how monarchs are decreasing in population. While some believe the cause is climate change, others believe it is the use of pesticides and some believe it is a combination of both. For example, Andre Leu, IFOAM President and author of The Myths of Safe Pesticides, quotes in his book, “Herbicide-resistant plants….have increased the use of glyphosate, which kills all other plants including milkweed, the only type of plant that monarch butterflies use for laying their eggs.” The author cites that milkweed has declined by 60 percent and monarchs in the U.S. that winter in the forests of Mexico has dropped from 1 billion in 1997 to 33.5 million. The milkweed fact above was mentioned in Flight Behavior.

I”m not going to use this space to debate climate change; rather, I’m going to use this space to discuss the role of media in the conversation. Today, media is quoting “experts” about climate change (and other issues) that are in fact not experts at all. Where are the credible scientists and researchers who are doing the work around climate change in this conversation?

Many scientists do not like how they are portrayed in and by the media. Reporters often spend more time being skeptical about the facts being delivered by a respected scientist then they do when speaking to a person who uses social media to get his/her word out effectively but has no basis in training or education to be discussing the scientific merits of an issue. (In other words, scientists don’t speak sexy talk).

Dellarobia and her husband Cub, give us an example: “Here’s the thing,” she said. “Why would we believe Johnny Midgeon about something scientific, and not the scientists?”Read More

book reviews, Climate Change, Environment, Opinion

What’s the Biggest Challenge for Seed Industry?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “How should Congress handle tax breaks?”

Congress is once again considering a package of tax breaks for businesses and individuals that include everything from section 179 deductions to renewable energy tax credits. An overwhelming majority believe a flat tax is the answer. Will Congress think the same? Making tax breaks permanent and not allowing them at all tied for second place in our poll. Still looks like many are all over the board on what they think should be done.

Here are the poll results:

  • Make them permanent – 18%
  • One year at a time – 10%
  • Keep letting them expire & renew – 3%
  • Don’t allow any – 18%
  • Two words – FLAT TAX – 43%
  • Don’t know – 5%
  • Don’t care – 3%

Our new ZimmPoll is now live and asks the question, What’s the biggest challenge for the seed industry?

The seed industry gathered in Chicago for the annual seed expo and research symposium for corn, soybeans and sorghum and many issues were discussed. Since all of agriculture depends in some way on seed, the long term survival of that industry impacts everything from food and feed, to fuel and fiber, to flowers. What do you see as the biggest issues for the future of the seed industry?

ZimmPoll

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFGreenbelt Resources Corporation has announced that it has successfully achieved its goal of raising $550,000 from individual qualified accredited investors. The investments were offered in the form of either restricted common stock or unsecured interest bearing convertible debentures, with substantially all of the proceeds directed to common stock purchases. The net proceeds will be used for working capital needs including the transition of the company’s existing R&D facility to an operational biorefinery. The funds will also allow Greenbelt Resources to conduct target market research to identify feedstocks that provide the highest potential financial returns from conversion to commercially viable products including advanced biofuels, feed and fertilizer.
  • The first comprehensive study of U.S. institutional investors’ appetite for green bonds was released by the Clean Energy Group and Croatan Institute, two national nonprofits. The study, “What Investors Want: How to Scale-Up Demand for US Clean Energy and Green Bonds,” provides a blueprint for growing the market for fixed-income securities to finance clean energy projects and solve climate problems. The study examined what institutional investors need – and identified the demand characteristics that must be met – in order to make the decision to purchase these financial instruments as part of a sound investment portfolio.
  • Continental Energy Corporation has been appointed manager of a U.S. $95,000 grant from the Rural Energy Agency of Tanzania. The grant is made under the Tanzania Energy Development Access program with funds provided by the World Bank and the Global Environmental Fund. The proceeds of the grant are to be used to conduct a site specific technical and environmental study for a Ruaha Power proposed two megawatt hybrid renewable energy generation and distribution network, or “Mini-Grid,” incorporating a mix of run-of-river hydropower, solar photovoltaic, and biomass gasifier technologies.
  • Korean-based S-Energy Co., has completed the installation and grid connection of 3.33 megawatts of solar carport structures at 2 Los Angeles County, California school districts. S-Energy America, the wholly owned U.S. operation of S-Energy, provides CVD-free Korean-made modules to major residential and commercial solar installers throughout North America, as well as development, financing and operations expertise to move solar projects to completion. Over 7,000 S-Energy PC8 72-cell modules were installed at 12 school facilities within the Lynwood Unified School District. Another 4,400 S-Energy high-performance solar modules were installed at 6 school facilities within the Bassett Unified School District in the City of La Puente. The solar installations will offset more than 50% of each school’s electricity usage.
Bioenergy Bytes

US Senators Say Yes to Clean Power

Joanna Schroeder

A group of U.S. Senators have come out in support of EPA’s Clean Power Plan. The group submitted a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy stating that while the emission reduction goals are admiral, they believe that with modest EPA Clean Power Planchanges to reflect real-world market and technological conditions, the plan can be more effective as well as better aligned with state power plans.

Citing Best System of Emission Reduction that requires that an emissions limitation technology be “adequately demonstrated” and also taking into consideration costs and non-air quality health and environmental impact, the Senators offer several tangible suggestions for improvement with the recommendation of using the Alternative Renewable Energy Approach methodology as outlined in the EPA proposal with the following changes:

  • Recognizing the regional nature of the electricity system. State targets should reflect regional renewable energy generation and use alternative methodology to estimate regional technical potentials constrained by costs and grid integration limitations and then equitably set state targets that align with its Renewable Portfolio Standards.
  • Remove the benchmark deployment rate as a constraint on the target. The EPA should set targets based on the Integrated Planning Model (they do not do this now). The model can calculate renewable energy development potential by evaluating the technical potential, costs and grid conditions in each state.
  • Use current data to evaluate resource potential. The Senators cite the use of outdated data in the proposal and stress the need to use current renewable energy data that reflects today’s market conditions and recent technological developments.
  • Include distributed generation technologies in calculating state targets. Distributed generation was not included in EPA’s proposal and the Senators stress the need for this energy category to be included.

In addition, the senators also recommend considering all efficiency measures that have been adequately demonstrated in the marketplace; adopt a consistent approach in which any state that implements energy efficiency measures will receive full credit for such measures; and emissions reduction from displaced fossil fuels through the deployment of renewable energy and efficiency should be accurately captured in emissions reduction targets for states.

Rhone Resch, president and CEO of the Solar Energy Industries Association (SEIA) commented on the Senator’s suggested changed to the Clean Power Plan.

“As an organization – and as an industry – we are very encouraged that so many Senators have signaled their enthusiastic support for the EPA’s Clean Power Plan. As the fastest-growing source of renewable energy in America, solar contributes in a significant way to a balanced energy portfolio. In fact, in the third quarter of this year alone, the United States installed 1,354 megawatts (MW) of solar photovoltaics (PV), up 41 percent over the same period last year. Moving forward, we believe solar can be a real game changer for states trying to meet their requirements under the Clean Power Plan, and we stand ready to help.”

Clean Energy, EPA

REG Buys Germany’s Petrotec AG Biodiesel

John Davis

reg-logoIowa-based Renewable Energy Group, Inc. (REG) is expanding into Europe with its majority ownership buy of Germany’s Petrotec AG Biodiesel. This REG news release says deal is expected to be closed by the end of this month.

ICG, Israel Corporation’s vehicle for investing in the alternative energy market, today formally accepted an offer from REG European Holdings B.V. to purchase ICG’s 69 percent equity ownership in Petrotec AG for US $20.9 million, or US $1.235 per share, to be paid in newly issued REG shares valued at the 30 trading day volume-weighted average for the day prior to signing. The REG subsidiary will also purchase ICG’s loan to Petrotec AG in the amount of approximately US $15.4 million. In the next several weeks, REG European Holdings B.V. intends to make a cash tender offer for all other Petrotec shares at a price no less than the value per share to be received by ICG.

“REG’s investment in Petrotec is a natural extension of our business strategy which should enable us to better capture value from international trade flows and to participate in European biofuel markets,” said Daniel J. Oh, REG President and CEO. “Petrotec’s people, culture, business model and technology are similar to ours at REG. We look forward to working with the Petrotec team as REG expands its business into Europe and further delivers the key benefits of our international industry: energy security and diversity, environmental stewardship and food security.”

Petrotec collects used cooking oil and other waste feedstocks from more than 15,000 points to produce biodiesel at its two biorefineries in Emden and Oeding, Germany, with a total nameplate production capacity of 55.5 million gallons per year.

Biodiesel, International, REG