Fuels Institute: Opportunities to Grow E85 Market

John Davis

E85 price at Kum and Go in Adel Iowa on June 16 2014A group that looks at market issues related to vehicles and fuels says there are opportunities to grow the E85 market — but only if E85 prices remain way below regular grade gasoline prices. This news release from the Fuels Institute says also if automakers continue to produce flex-fuel vehicles at historic rates, E85 sales will, at a minimum, double by 2023 and could even see a 20-fold increase in sales over the same time period.

“This report is essential reading for federal regulators who are considering strategies to meet the goals of the Renewable Fuel Standard and for fuel marketers seeking options to diversify their product offer,” said Fuels Institute Executive Director John Eichberger. “It presents an objective analysis of the overall market for E85, including actual retail sales data, and represents a collective effort to identify opportunities and challenges facing this alternative fuel — without taking a position of advocacy.”

Biofuels have experienced remarkable growth over the past 12 years, from 1.75 billion gallons sold in 2001 to 14.54 billion gallons sold in 2013. The vast majority of this growth is from ethanol, particularly E10 fuel that is ubiquitous in most of the country. However, additional E10 sales are constrained by the size of the gasoline market, which has declined since 2007. Therefore, future biofuels sales growth will be highly dependent upon increasing the sale of higher grades of ethanol like E85, a blend of gasoline with 51 to 83% ethanol.

The report says E85 growth will be dependent on more gas stations offering the higher blend of ethanol and making sure there are plenty of flex-fuel vehicles on the road.

“Increasing the E85 station count would improve the potential for additional E85 sales and introduce additional competition to the market. But several other factors — including the relative price of E85 compared to unleaded gasoline and the number of vehicles on the road that can operate on E85 — must also be evaluated to determine the potential E85 market, especially because flex-fuel vehicles can operate on either E85 or gasoline,” said Eichberger.

E85, Ethanol, Ethanol News

$550 Bil in Fossil Fuel Subsidies Hurt Efficiencies, Renewables

John Davis

GRFA1More than half a trillion dollars in subsidies for fossil fuels are discouraging energy efficiencies and renewable alternatives. This news release from the Global Renewable Fuels Alliance (GRFA) cites an International Energy Agency (IEA) report that shows worldwide fossil fuel consumption subsidies reached $550 billion in 2013, keeping down investments to make energy more efficient and renewable.

“Fossil fuel subsidies are theoretically intended to increase energy access, but according to the IEA these subsidies are failing while discouraging investment in energy efficiencies and renewables. This raises a glaring question; who’s the $550 billion benefiting?” asked Bliss Baker, spokesperson for the GRFA.

Despite falling oil prices, fossil fuel consumption subsidies rose by $6 billion, to $550 billion in 2013, up from $544 billion in 2012. By comparison, all global renewable energy sources received less than a quarter of that amount in subsidies.

“It seems counter productive to subsidize the most profitable industry on Earth that contributes the majority of global greenhouse gas emissions, especially when biofuels are growing and are the only commercial alternative to transport fossil fuels,” stated Baker.

GRFA also says that by 2040, biofuels use will more than triple, rising from 1.3 million barrels of oil equivalent per day in 2012 to 4.6 million barrels per day in 2040, about 8 percent of road-transport fuel demand.

biofuels

CanWEA Welcomes Wind Policy

Joanna Schroeder

The Canadian Wind Energy Association (CanWEA) is welcoming the initiative that the Minister of Energy and Natural Resources, Pierre Arcand, has announced to develop a new energy policy in Quebec. The organization has sent a message to Arcand that they are willing and ready to work the the Quebec government, industry and the new wind energy task force to review and strengthen the region’s wind energy policy.

windfacts-banner-superhero“There are many challenges that will need to be overcome in energy,” said Jean-François Nolet, Vice President, Policy and Government Affairs at CanWEA. “We must find a balance between developing the energy sources we need to support economic development, the costs of these projects and protecting the environment, while maintaining strong partnerships with host communities. We are convinced that wind energy can help play an important role in reaching these goals.”

According to CanWEA, the Quebec wind industry employees 5,000 people and has generated $10 billion in investments over the last 10 years. The organization believes that wind energy can and should play a key role in Quebec’s next energy policy that will guide energy decisions for the coming decade.

Nolet added, “Today, Quebec is a leader in energy thanks to the government’s vision, whether during the development of large hydroelectric projects or the very first wind projects. We must continue down this path and remain at the forefront by reaffirming our leadership in this area.”

Electricity, International, Renewable Energy, Wind

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFCanadian Solar Solutions Inc. will provide 4 megawatts/2.76 megawatts/hour of stationary on-grid bulk energy storage to Independent Electricity System Operator (“IESO”) to support the Ontario grid. The project will provide an energy storage solution for ancillary services applications in Ontario by leveraging Canadian Solar’s extensive project development expertise and success in the Canadian energy market. In addition, this project was one of twelve selected by IESO in a competitive application process that was completed in July 2014.
  • Dominion has acquired Pavant Solar, a 50-megawatt solar energy project, from juwi solar. Pavant Solar is Dominion’s first solar development in Utah and is expected to enter service in the second half of 2015. The project has secured a 20-year power purchase agreement and an interconnection agreement.
  • The New England-Canada Business Council will hold its 22nd Annual Energy Trade and Technology Conference on Thursday, Friday, November 13-14, 2014 at the Seaport Hotel, Boston, Massachusetts. Current issues to be covered include: Keystone XL oil pipeline and cross-border siting issues; proposed hydro and wind electricity projects for the New England market; proposed natural gas pipelines; and how regional cost disadvantages impact citizens and businesses.
  • PSEG Solar Source has announced that completion of the PSEG Essex Solar Energy Center. The facility is located roughly four miles northeast of Burlington, Vermont, and has a capacity of 3.6 MW-dc. The solar farm was developed and constructed by juwi solar Inc. It has a 25-year power purchase agreement with Vermont Electric Power Producers, Inc., as part of the Vermont Sustainably Priced Energy Enterprise Development (SPEED) program.
Bioenergy Bytes

India’s Railways to Power Trains with Biodiesel

John Davis

indiatrain1Biodiesel in India gets a big boost as that country’s train company, Railways, decides to use the green fuel to power a fleet of 4,000 locomotives. This Times of India article says the move is to help clean up the environment and use less petroleum-based diesel.

Announcing the railway ministry’s move at a convention organized by Bio Diesel Association of India (BAI) on Wednesday, minister Sadanand Gowda said, “Railways is the single largest bulk consumer of diesel in the country and as mentioned in railway budget 2014-15, it will start using bio-diesel up to 5% of the total fuel consumption in diesel locomotives.” He added this will save foreign exchange substantially.

The national transporter annually consumes over two billion litres of diesel and foots a bill of over Rs 15,000 crore.

Road transport minister Nitin Gadkari also said that while his ministry is pushing for more use of clean and domestically produced fuel, he would take up the issue of allowing bio-diesel producers to sell their produce directly to bulk consumers in India. At present, only 20% of bio-diesel produced in India is sold here and the rest is exported.

Indian ministers added they are looking at plans to use waste land to grow the edible and non-edible oilseeds for the biodiesel.

Biodiesel, International

Biodiesel Great But Broken Drivetrain Delays Trip

John Davis

Ricketts shows problemWhile the biodiesel performed well, a busted drivetrain is postponing a cross-country trip featuring the chicken fat fuel. Earlier this week, we told you how Middle Tennessee State University Cliff Ricketts was driving from Key West, Florida, to Seattle, Washington, a 3,550-mile journey being made on pure biodiesel from waste chicken fat. But this update from the school says a broken drivetrain transmission on the left side of the 1981 Volkswagen Rabbit diesel pickup that happened near Kansas City, plus winter weather affecting the Great Plains, combined to now postpone the alternative fuel researcher’s “Southern-Fried Fuel” quest until spring 2015.

“I said at the beginning of this journey that we are on an adventure, and it has been,” Ricketts said.

“We’ll just postpone it until a later date. That is the common-sense thing to do.”

Traveling from the southernmost point in Florida up through Georgia, Tennessee, Kentucky, Illinois and Missouri — six of 13 states along his planned route — the 38-year MTSU School of Agribusiness and Agriscience faculty member called the trip an amazing experience.

His fuel source, totally pure biodiesel, did not include petroleum. The mechanical problems had nothing to do with the fuel he was testing in the research.

“The biodiesel did great,” said Ricketts, who added that data showed miles-per-gallon ranges were from 36 to 45-plus.

“Equal speed, power, torque. The diesel vehicle has shown it is a viable fuel option as and when needed. Any issues we had had nothing to do with the biodiesel.”

The trip is now expected to resume this coming March or May.

Biodiesel, Research

Nestlé Waters Switch to Propane

Joanna Schroeder

gI_84865_NEWNestle Waters prpoane autogas vehicleNestlé Waters North America’s Los Angeles, California location has begun operating five medium-duty beverage trucks fueled by propane autogas. The trucks will deliver Arrowhead Mountain Spring Water to area businesses and residents. The company said ti purchased the propane autogas vehicles because of the ease of fueling, the low infrastructure cost and the unexpected benefit of lower electricity costs.

“Nestlé Waters North America is committed to delivering customers drinking water with reliable, innovative and efficient green transportation solutions,” said Bill Ardis, fleet manager for Nestlé Waters North America. “Like many, we are evaluating the different technologies that offer savings over the life of the vehicle and realized that propane autogas is a smart choice for reducing fuel and maintenance costs while providing cleaner air for the community.”

The Nestlé Waters Los Angeles location currently utilizes on-site refueling for their diesel powered trucks. They have an on-site propane autogas fueling station as part of its propane commitment.

“Fueling beverage delivery trucks with propane autogas offers the best total cost of ownership, without compromising standard delivery procedures,” added Todd Mouw, vice president of sales and marketing for ROUSH CleanTech. “By choosing this safe, abundant and American-made fuel, fleets around the nation are reducing their operating costs and lowering their carbon footprint.”

Propane

UC Riverside Opens New Solar Farm

Joanna Schroeder

UC Riverside has opened a new solar farm that will produce up to 6.6 million megawatt hours of electricity each year making it the largest solar array in the University of California system. The project supports the system-wide initiative to have each campus produce up to 10 MW of onsite renewable power by 2014.

UCR signed a 20-year power purchase agreement that allowed the SunPower Corporation to construct, operate and maintain the facility, with the university purchasing the power. UCR spent $350,000 on site clearing and preparation, as well as uc riverside solar farminterconnections costs with the existing substation. The projected savings to the university is $4.3 million over the length of the contract. UCR will also receive carbon and LEED credits that provide additional financial and environmental savings.

The solar farm went online as scheduled on Friday, Sept. 19, 2104. It has 7,440 panels across the 11-acre site using GPS tracking to slowly follow the sun across the sky. The massive sea of shiny panels is visible from Highway 60 as thousands of cars pass the campus.

“This is a big step forward, and we plan to do more,” said John Cook, director of the UCR’s Office of Sustainability. “On a hot and sunny day we will be producing nearly a third of UCR’s total energy needs with this system. But over the course of the year, with variable weather, it will amount to 3 percent of our total energy needs.” He added that Riverside’s typical sunny climate will make UCR an especially efficient place to invest in solar technology.

Electricity, Renewable Energy, Solar

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFVitol Group President and CEO Ian Taylor will deliver the keynote address at the 2014 Platts Global Energy Outlook Forum on Thursday, December 11, 2014 in New York City, event host Platts announced today. Now in its eighth year, the forum brings together energy executives, government officials, investors and academics to debate and discuss the challenges, opportunities and issues facing energy companies and policymakers.
  • Hitachi, Ltd. and Hitachi America, Ltd. have announced an agreement on joint research with the Bonneville Power Administration of the U.S. Department of Energy to continue the development of a grid stabilization system. The goal of the project is to develop and conduct PoC*1 testing of an online demonstration system over the next 21 months, beginning in October, with the cooperation of Chubu Electric Power Co., Inc.
  • Americans for Prosperity, a grassroots advocate for economic freedom, released a letter urging members of Congress to oppose extending the wind production tax credit (PTC). The letter, which comes just as Congress returns to session, calls efforts to phase-down the tax credit ‘misguided,’ and asks lawmakers to reject any legislation that extends wind subsidies.
  • The National Rural Electric Cooperative Association has unveiled an interactive website tracking solar development by electric cooperatives. Offering maps, data, photos and video, the website provides an overview and new details about the recent dramatic increase in cooperative-owned and purchased solar capacity.
Bioenergy Bytes

More Corn for Ethanol

Cindy Zimmerman

usda-logoIn the new World Agricultural Supply and Demand Estimate, USDA has increased the amount of corn forecast to be used to make ethanol and co-products such as the livestock feed distillers grains.

Corn used in ethanol production is projected 25 million bushels higher at 5.15 billion bushels for the 2014-15 marketing year. The reason is a reduction in expected sorghum use for ethanol and the strong pace of weekly ethanol production reported so far for the marketing year.

In the November crop forecast, USDA slightly lowered corn production this year to 14.4 billion bushels, with yields now expected to average 173.4 bushels per acre. If realized, this will still be the highest yield and production on record for the United States.

“This is positive news for the market overall as we’re expecting demand to rise to meet these record yields,” said American Farm Bureau Deputy Chief Economist John Anderson. “An estimated increase in ethanol production should also help to absorb this year’s bumper crop.”

The drop in the national production estimate for corn seems to be coming from traditionally high-yield states that are now seeing lower estimates this month, Anderson said. The Iowa yield estimate was shaved by two bushels per acre, and Minnesota’s came down by five.

The main reason for the slight drop in the corn forecast is a slow harvest and weather challenges, that are now including heavy snow in the upper Midwest. The latest crop progress report shows Wisconsin, Michigan, Colorado and Indiana lagging behind the most in harvest, but significant progress was made in the last week so that the corn harvest nationwide now stands at the five year average of 80 percent.

corn, Ethanol, Ethanol News, USDA