Impact of Ethanol Mandates on Fuel Prices Nill

Joanna Schroeder

Professors Sebastien Pouliot and Bruce A. Babcock with Iowa State University’s Center for Agricultural and Rural Development (CARD) have released a new paper, “Impact of Ethanol Mandates on Fuel Prices When Ethanol and Gasoline are Imperfect Substitutes“. The authors note papers that consider the two transportation fuels “equal” have been of limited use in informing current policy debates because the short-to-medium-run reality is one of sets restrictions on how ethanol can be consumed in the U.S.

Mandate Impacts on GasThe authors’ objective of the paper was to improve understanding of how these restrictions change the findings of existing studies. The paper estimated the impacts of higher ethanol mandates using a open-economy, partial equilibrium model of gasoline, ethanol and blending whereby motorists buy one of two fuels: E10, which is a blend of 10 percent ethanol and 90 percent gasoline, or E85 which is a high ethanol blend. The model is calibrated to recent data to provide current estimates.

Mandate Impacts on EthanolThe authors find that the effects of increasing ethanol mandates that are physically feasible to meet on the price of E10 are close to zero. In other words, White House fears of higher RIN prices due to higher gas prices are unfounded. The report also shows the impact of the size of the corn harvest on E10 prices is much larger than the effects of mandates. However, increased mandates can have a large effect on the price of E85 if the mandates are increased to levels that approach consumption capacity. These findings show that concerns about the consumer price of fuel do not justify a reduction ethanol mandates under the Renewable Fuel Standard (RFS).

The 2014 RFS rule is currently under review with the Office of Management and Budget (OMB).

biofuels, Ethanol, Ethanol News, Research, RFS, RINS

Drought, Fires Hurting Sugarcane Harvest in Brazil

Joanna Schroeder

A severe drought has hit São Paulo, Brazil and has severely affected the production of sugarcane in the state. Estimates of the Brazilian Sugarcane Industry Association (UNICA) show the lose around 15 percent or almost 40 million tons of sugarcane. Another factor in crop loss has been accidental fires due to the dry conditions. This comes at a time when the country is looking to increase its national ethanol mandate to 27 percent ethanol fuel blend.

The low rainfall seen throughout this year has increased outbreaks of fires not only in the areas of cultivation of sugarcane but also in areas planted with other crops, pastures and vegetation cover. Sugarcane plantsInformation collected by the Environmental Police and other state government agencies show that by the beginning of September had already been recorded 2,981 fire outbreaks and forest fires in São Paulo – that number is 140 percent higher than the same period of 2013.

Fires are often erroneously attributed to sugarcane producers due to the process of burning straw. However, UNICA points out that since 2007 the sector has been given the Green Protocol, established voluntarily by the state government of São Paulo to end burning.

“The productive sector has made a huge effort to accelerate the end of the use of fire and significantly exceeded expected to reduce the use of controlled burning in detrash of cane sugar schedule,” said Elizabeth Farina, UNICA president.

The drought has caused people to raise concern over raising the country’s ethanol mandate but no decision has yet been made to increase, decrease or keep the mandate in tact as is.

advanced biofuels, Brazil, Ethanol, UNICA

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFCanadian Solar Inc. has completed the 1.2 MW (DC) solar photovoltaic (PV) power plant at Shibushichocho, Kagoshima Prefecture in Japan. Powered by Canadian Solar CS6P-255P modules, the plant will generate approximately 1,533 MWh of clean, emission-less solar electricity per year. The electricity generated from the project will be purchased by Kyushu Electric Power Co., Inc. under a 20 year feed-in-tariff contract at the rate of 40.00 yen ($0.37) per kWh.
  • EnerDynamic Hybrid Technologies Corp. has launched its EnerSmart battery product line. The EnerSmart battery system is designed for residential and commercial use and is one of the industry’s leading smart lithium battery energy storage and management systems. The EnerSmart Battery comes equipped with multiple hybrid inputs for Solar and/or Wind energy as well as outputs for both on-grid and off-grid applications. The EnerSmart Battery starts at 12 Kilowatts in size and is scalable up to a full 2 Megawatts.
  • Twenty-five ministers from 23 countries will be gathering at the World Energy Council’s (WEC) World Energy Leaders’ Summit in Cartagena, Colombia on October 23, 2014 to hold talks over the future of energy in the Latin America and Caribbean region. The Summit is co-hosted and by President Juan Manuel Santos of Colombia. The ministers will be meeting at a private Ministerial Roundtable within the WEC’s World Energy Leaders’ Summit to address the triple challenge of the energy trilemma. At the wider Summit they will be joined by over 100 chief executives and head of organisations from the region and beyond for closed-door discussions over the region’s energy future.
  • Ecotech Institute has named Auston Van Slyke as the school’s new director of the Wind Energy Technology program. In this position, Van Slyke will continue to advance the courses for wind energy students through customized, hands-on lab experiences and curriculum. Prior to joining Ecotech Institute, Van Slyke served as a Staff Sergeant in the United States Marine Corps, where he specialized in communication and weapon systems upgrades to AV-8B Harrier jets. He was later employed by Vestas and traveled the U.S. and Canada working on the world’s largest turbines.
Bioenergy Bytes

West African Solar Project Gets Funding

Joanna Schroeder

A large photovoltaic solar farm to be located at Zagtouli on the outskirts of Ouagadougou, the capital of Burkina Faso in sub-Saharan Africa is moving ahead. The European Investment Bank has agreed to provide EUR 23 million to support the project. When completed the 30 MW solar plant is expected to act as a reference for future solar investment across the continent.

Once operational the new solar plant will significantly increase power generation in Burkina Faso, reduce dependence on energy imports from Ivory Coast and Ghana and help prevent power cuts. It is estimated that less than a quarter of the country’s inhabitants have access to electricity. In recent years power demand in the country has increased annually by 10 percent; however, power cuts and limited electricity access have seriously hindered economic growth.

Burkina Faso Flag“The European Investment Bank is a strong partner for Burkina Faso and this close cooperation over many years has enabled significant investment in new water and energy infrastructure that has created jobs across the country. The new support agreed today for investment by SONABEL in renewable energy is an importance milestone in the long-standing cooperation between Burkina Faso and Europe,” said Lucien Bembamba, Minister of Economy and Finance for the Republic of Burkina Faso.

Agreement for financing the solar project follows detailed feasibility studies to evaluate local energy needs and strengthen project implementation supported by the European Union. The European Union Delegation in Ouagadougou has supported the project since the start and worked closely with promoter SONABEL. Alongside the EIB, financing will also be provided by the French Development Agency and European Union and over a hundred jobs will be created during construction of the solar plant.

“Electricity in essential for economic activity and the European Investment Bank is committed to supporting energy investment that will improve lives across Africa,” added Pim van Ballekom, European Investment Bank vice president. “The significant support for the new solar farm builds on our strong partnership over many years with Sonabel. Burkina Faso can be proud to host the new facility that will act as a benchmark for renewable energy in West Africa.”

Electricity, International, Renewable Energy, Solar

Bridge to Clean Energy Future Act Unveiled

Joanna Schroeder

Representatives Earl Blumenauer (OR-03) and Dave Loebsack (IA-02), along with 16 other members of Congress, have introduced HR 5559, the Bridge to a Clean Energy Future Act of 2014. If passed, the bill would extend incentives to provide market certainty and to strengthen investment in clean energy such as extending the Production Tax Credit (PTC) for wind energy through 2016, offering parity with the Investment Tax Credit enjoyed by solar energy investments, and granting the solar industry the same access to credits at the start of a project’s construction that the wind industry has.

Iowa Wind Farm Photo Credit Joanna Schroeder“I’m eager to push this across the finish line this Congress,” said Blumenauer. “My state of Oregon is a leader in renewable energy technologies, and Dave’s state of Iowa is the second largest wind energy producer in the nation, so we understand the importance of stability and security in the clean energy sector. His help will be important in advancing this legislation. Making sure these energy sources are on an even playing field with the fossil fuel industry is essential to lowering carbon emissions, creating a cleaner environment, and creating good, non-exportable American jobs.”

According to the representatives, creating a tax landscape for renewables that allows them to compete fairly in the market with other energy sources benefits the country by creating a healthier environment and thousands of jobs. It also puts renewable energy on an equal footing with traditional fossil fuels, giving consumers choice about how they want to power their homes and their lives.

“The Production Tax Credit has helped the still-growing U.S. wind energy industry employ 80,000 Americans, including thousands of Iowans,” added Loebsack. “Like all businesses, the wind energy sector needs stability and predictability so long term investments and business decisions can be made. The continued expiration of the PTC causes slow-downs at manufacturing facilities and could lead to additional lay-offs. For our nation to move towards energy independence and continued job growth, we need to prioritize clean energy like wind and act immediately to pass this extension of the PTC.”

politics, Solar, Wind

UK Firm Fires Up Straw-Fired Energy Plant

John Davis

glennmontA renewable energy investment firm has opened a 38 megawatt straw-fired plant in the United Kingdom. Glennmont Partners announced the start of operations at the Sleaford biomass facility.

The plant was built by a consortium of Burmeister & Wain Scandinavian Contractor A/S and Burmeister and Wain Energy A/S. Glennmont purchased 100% of the equity in the project in December 2011, and financed the construction through a debt package provided by NIBC Bank NV, RBS, Siemens Bank GmbH and Unicredit Bank AG.

Sleaford will generate enough electricity to power 65,000 homes as well as providing free heat to local sports clubs and community facilities. It will create and support jobs in local agriculture and has been built to perform to the highest environmental standards.

Joost Bergsma, Managing Partner of Glennmont, said: “Sleaford is a landmark deal not only for Glennmont but for the UK biomass industry as a whole. Glennmont has committed itself to leading the way for institutional investors to realise exceptional value from the renewable energy market, and Sleaford is an excellent example of this.”

Glennmont Partners has a renewable energy portfolio of more than 300MW of biomass, wind and solar power in France, Ireland, Italy, Portugal and the UK.

biomass, International

Researchers Get More Out of Trees for Bioenergy

John Davis

spainbiomassResearchers in Spain have found a way to manipulate the genes of trees to get more biomass to make more bioenergy. In a joint venture between the Universidad Politécnica de Madrid (UPM) and the National Institute for Agricultural Research and Experimentation (INIA), the scientists figured out how to increase biomass production in a forest with altering the growth, composition or wood anatomy of the trees.

Lateral buds of most of the woody species in warm and cold areas do not sprout in the same season that they are born. These buds, called proleptics, remain latent and do not grow until the following spring. However, some lateral buds sprout during the same season such as poplar trees, other salicaceae species and many tropical species. This way, a syleptic branching can increase de amount of branches, leaf area and the tree growth in general, mainly during their first years of life.

On that basis, researchers at UPM have used a biotechnological procedure to modify the gene expression levels of RAV1 (Related to ABI3 and Viviparous 1) that increases the development of sylleptic branching of woody species. Thus, researchers have found a way of increasing biomass production of a poplar plantation. This process of genetic modification is potentially applicable to any woody species and using their adaptive features to a particular habitat.

The researchers say this will give them better control over biomass production levels without year-to-year variances.

biomass, International

Southland Transportation Buses Go Propane

Joanna Schroeder

Southland Transportation recently added 101 Blue Bird Propane Vision buses to its propane autogas school bus fleet. The company is a subsidiary of the largest family-owned pupil transportation provider in Canada with operations in school, motor coach and public transportation. The new Propane Vision buses will transport students from the Calgary Board of Education (CBE) and Medicine Hat School District No. 76.

Southland Transportation first started operating Blue Bird Propane Vision buses in 2007 with good results. The company’s corporate commitment to the environment can be seen throughout all facets of the organization gI_65907_Southland Keysfrom anti-idling programs to recycling programs. Southland Transportation’s environmental policies also play a factor with onsite fuel options. With non-toxic properties and an uncomplicated set-up, propane autogas is the only fueling infrastructure that Southland Transportation permits on its properties.

“Our Propane Visions have been a proven performer. Due to the clean-operation and straightforward technology, I would estimate that each propane bus annually saves us about $500 in basic maintenance costs,” said Tom Jezersek, vice president at Southland Transportation. “As a former licensed mechanic, I am well-versed to the advantages of propane autogas. These buses are safe, reliable and immediately start in temperatures as low as minus 30 degrees Celsius, without the use of oil pan heaters or block heaters. Our drivers also enjoy the buses as they are quiet, powerful and come to temperature very quickly. Propane autogas is an excellent choice for districts.”

The Calgary Board of Education, located in Calgary, Alberta, transports over 3,400 students to 65 area schools utilizing Blue Bird Propane Vision school buses. Already operating 32 Propane Vision buses Southland Transportation recently added an additional 59 propane-powered school buses to the district’s fleet bringing the total Propane Vision fleet to 91.

Alternative Vehicles, Propane

Is Obama is Own Worst Enemy on Climate?

Joanna Schroeder

The People’s Climate March” has received worldwide attention to kick off Climate Week in New York and an ad in the New York Times is asking if President Obama is his own worst enemy when it comes to climate. The ad tells the president that if his administration accepts the Environmental Protection Agency’s proposal to alter the Renewable Fuel Standard (RFScreen Shot 2014-09-22 at 11.37.27 AMS) he “will have inadvertently done more to damage [his] climate legacy than [his] worst enemies.”

The ad warns that the proposal would let oil companies off the hook for blocking competition from American renewable fuels, and prompt an exodus of investment in cellulosic ethanol—the world’s cleanest motor fuel—to China and Brazil.

In the ad, the Advanced Ethanol Council and Biotechnology Industry Organization caution President Obama that investments in additional cellulosic production beyond these four plants will likely shift overseas if the President adopts the flawed methodology of the EPA proposal, regardless of whether he decides to actually raise the renewable fuel targets in the rule. This month, two commercial scale cellulosic ethanol biorefineries came online in Iowa and Abengoa will be hosting a grand opening for its cellulosic ethanol plant in Kansas in October.

AEC, BIO, biofuels, Climate Change, Ethanol

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFEnerDynamic Hybrid Technologies Corp. (formerly MCM Capital One Inc.) has completed the installation of the 108 Kilowatt St. Etienne Project under the Ontario Feed-in Tariff (FIT) program. The Project includes approximately 520 Jinko solar panels, Schletter racking and Santerno Inverters. The Project is 25% owned and operated by EHT over the 20 year PPA and produces approximately 130,000 Kilowatt hours per annum and earns a rate of 71.3 cents per Kilowatt hour.
  • Defend Our Future, a project of the Environmental Defense Fund (EDF), has launched a $450,000 all-digital ad buy in Colorado to support its effort to drive young voters to the ballot box to show their support for action on climate change. The message of Defend Our Future focuses on empowerment for voters under 35. Younger voters represent the leading edge of a growing demographic wave that is far more supportive of climate action than older cohorts of voters.
  • The Honolulu City Council has adopted a resolution requesting the development of a biodiesel initiative for the city’s existing mass transit diesel vehicles. Introduced by Stanley Chang, Chair of the Committee on Public Works and Sustainability, resolution 14-169 has passed through committee is is waiting for the full Council’s consideration. The adoption of resolution 14-169 would allow the Department of Transportation and the City to look to further the use of biodiesel in TheBus and TheHandi-Van fleets comprised of more than 650 vehicles.
  • DuPont Photovoltaic Solutions and Yingli Green Energy Holding Company Limited have completed the installation of a 210 kilowatt solar power project on the rooftop of the DuPont China R&D Center in Shanghai. The project contains Yingli Solar’s monocrystalline PANDA modules, which utilize innovative new technologies that are enabled in part by advanced materials from DuPont.
Bioenergy Bytes