RFA Submits LCFS Comments to CARB

Joanna Schroeder

The California Air Resources Board has released a proposal to transition to a new version of the GREET model that is used to determine a fuel’s greenhouse gas reduction score or more specifically, the direct lifecycle carbon intensity as part of its Low Carbon Fuel Standard (LCFS). CARB has proposed to use Argonne National Laboratory’s latest version of GREET as the basis of its update to the original California GREET model, which was RFANewlogointroduced in early 2008 and has been in use for the past six years.

Geoff Cooper with the Renewable Fuels Association (RFA) has submitted comments to CARB and writes, “We believe Argonne’s GREET1_2013 model contains a number of important improvements and updated inputs that more accurately reflect the current CI performance of corn ethanol and many other fuel pathways … it is encouraging to see the LCFS regulation finally catching up to the actual state of the industry.”

RFA believes CARB’s migration to the newer GREET version is a step in the right direction, but “several additional revisions to CA-GREET2.0 should be considered.”

Cooper outlines three specific changes that RFA would like to see CARB address to the new GREET model:

  • CARB should integrate the Argonne GREET1_2013 default assumptions on ethanol co-product feed (i.e., distillers grains) displacement rates.
  • CARB should revise the CA-GREET2.0 model’s treatment of emissions from agricultural lime application based on new data from the U.S. Department of Agriculture (USDA).
  • CARB should adopt the GREET1_2013 methodology for estimating land use change (LUC) emissions in lieu of CARB’s current standalone GTAP methodology.

“Adopting these recommendations would further reduce corn ethanol’s direct CI score by 8–10 percent, and would slash CARB’s current ILUC factor by approximately 70 percent,” according to Cooper. “Integrating RFA’s suggested revisions, along with the proposed changes already planned by CARB, would better reflect the actual nature of ethanol’s lifecycle carbon intensity and confirm ethanol’s ability to significantly reduce GHG emissions relative to gasoline.”

biofuels, Ethanol, Low Carbon Fuel Standard, RFA

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFFluid Quip Process Technologies has hired Neal Jakel to lead their strategy and technology growth efforts. In this role, Jakel will oversee the company’s current growth plans with the primary focus on bringing a broad array of technologies and solutions to the biorefinery and renewable chemical industries.
  • SunPower Corp. has manufactured its one billionth high efficiency solar cell. This milestone was achieved 11 years after the company started manufacturing its A-300 solar cell in its first fabrication facility (Fab). Today, SunPower operates two Fabs that will generate approximately 1,300 megawatts of solar cells by the end of this year. To meet growing demand for SunPower solar systems, the company is building a new 350-MW Fab, with first silicon expected in early 2015.
  • On Tuesday, September 30, 2014, at 4:00 pm EST, the U.S. Department of Commerce, U.S. Dept. of Commercial Service in Tokyo and the Global Energy Team is hosting a free webinar on Japan’s Renewable Energy Market: Status, GOJ Policy and Future of Wind Power. As the first of the webinar series on Japan’s renewable energy market, this webinar will introduce participants to recent trends in Japan’s renewable market, Japanese Government Policy, and discuss business opportunities for U.S. firms.
  • The increasing sales of commercial and passenger vehicles, especially flex-fuel vehicles that allow end users to choose customised biofuel-fossil fuel blends, are expected to drive the consumption of automotive biofuels around the globe. The enforcement of higher biofuel percentage blend mandates will spur use of solutions higher than the standard E10 ethanol blend, adding to biofuel demand. New analysis from Frost & Sullivan, Strategic Analysis of the Global Automotive Biofuels Market, finds that the market generated revenues of $94.61 billion in 2013 and estimates this to reach $149.25 billion in 2018. The study covers automotive biodiesel and ethanol.
Bioenergy Bytes

ACE Urges Support for STB Reauth Act of 2014

Joanna Schroeder

The American Coalition for Ethanol (ACE) is urging leaders of the Senate Commerce Committee to support S. 2777, the Surface Transportation Board Reauthorization Ace of 2014. In a letter, Brian Jennings, executive vice president for ACE writes U.S. corn-based ethanol is the most economical transportation fuel in the world. And when factoring in its favorable blending economics along with the Renewable Fuel Standard (RFS), ethanol is capable of comprising more than its 10 percent share of the U.S. gasoline market.

ACElogo“But in order to do that, reliable and timely rail service is critical,” the letter states. “Unfortunately, during most of 2014, railroads have failed to provide reliable and timely service. Logjams built-up this winter due to extreme cold and snow which reduced the speed and size of trains, and all year long it has appeared that railroads have provided favorable service to crude oil shipments at the expense of ethanol and agricultural commodities….”

“Many of ACE’s ethanol producer members are captive shippers and have reported chronic rail service disruptions this year, such as delayed tank car arrivals, insufficient tank cars received for ethanol off-take, loaded cars parked and overdue for power to arrive, and turn-around times that have doubled. As a result, storage tanks at ethanol plants are full and many of our members have been forced to slow production or worse yet, shut down operations at a time when demand for ethanol is on the rise because of its low price and clean octane benefits, writes Jennings.

The letter continues, “To cope with unreliable rail service, some biorefineries have invested in additional storage or considered adding unit train capability, but it is hard to justify those investments without meaningful commitment by the railroads that service will improve. Moreover, we are concerned that a record harvest of corn and soybeans this fall could make a bad situation on the rails even worse.”

Jennings notes that while the S. 2777 does not immediately nor comprehensively overcome all the problems, it is a step in the right direction.

ACE, biofuels, Ethanol

Saudi Poultry Industry Eyes Solar-Diesel Hybrids

Joanna Schroeder

The agricultural industry in Saudi Arabia is looking to reduce fuel costs and increase energy efficiency with solar-diesel hybrid solutions. In particular, the poultry industry could greatly benefit from using solar-hybrid generators replacing traditional diesel generators. The technology was discussed in Riyadh leading up to the Desert Solar Saudi Arabia conference taking place September 17-18, 2014.

“Hybrid solar-diesel systems are an effective solution to provide power to poultry houses, many of which are not connected to the national electric grid. Solar-based solutions are well adapted to the Kingdom’s sunny Desert Solar Aerialconditions, and they can help reduce the poultry industry’s heavy reliance on diesel fuel,” said Mark Webster, agribusiness and food practice lead at PricewaterhouseCoopers (PwC). Webster was addressing the Sustainable Agriculture: A Solar Solution roundtable, which was organized by the Saudi Arabia Solar Industry Association, in partnership with PwC and Dar Solar.

As a result of the heavy dependence on diesel fuel, Saudi poultry producers, accounting for nearly 79 percent of the Kingdom’s poultry import, are incurring notably higher energy costs than Brazilian producers due to their heavy dependence on diesel fuel.

“Domestic producers are expected to double national poultry production in the next few years, creating even further pressure on the demand for diesel fuel. A hybrid solar-diesel system will help poultry producers remain competitive against imports by ensuring a secure and affordable source of power to cool their poultry houses,” added Webster.

At present, domestic poultry production accounts for only 40-45 percent of the Saudi market. However, the share is expected to increase to 60-65 percent in the next 5-10 years, due to massive investments in additional production capacities planned by the top Saudi producers.Read More

Agribusiness, conferences, Electricity, Solar

Iowa RFA Ad Challenges Biden on RFS

Cindy Zimmerman

The Iowa Renewable Fuels Association (IRFA) took out a full page ad in today’s Des Moines Register to ask Vice President Joe Biden to set the record straight on reports that he may have intervened to reverse the Obama Administration’s previous support for the Renewable Fuel Standard (RFS).

biden-iowaWith the headline “Say it ain’t so, Joe” the ad questions the vice president about the story out of Philadelphia in May that he urged EPA to lower the RFS after receiving a call from a Pennsylvania congressman on behalf of a refinery owned by the politically connected Carlyle Group. “This report, if true, is deeply troubling. We hope you’ll take the opportunity today to set the record straight. And more importantly, work with us to fix the Administration’s flawed proposal. It’s not too late – but we need your help.”

IRFA and other individuals and organizations involved in Iowa’s renewable fuels industry wrote a letter to the Vice President asking him to clarify the reports and to discuss the issue with Iowans. “Because he has thus far not responded, IRFA is now addressing the issue more publicly with Biden as he visits Iowa today,” said IRFA.

The Vice President delivered remarks in Des Moines today at a kick-off event for the Nuns on the Bus “We the People, We the Voters” bus tour. Not surprisingly, he did not mention renewable fuels during his address.

Ethanol, Ethanol News, Government, RFA, RFS

DuPont Chooses Murex to Market Cellulosic Ethanol

Cindy Zimmerman

DuPont LogoDuPont Industrial Biosciences (DuPont) has selected Murex LLC to market the cellulosic ethanol produced from its 30-million-gallon-per-year plant in Nevada, Iowa. Upon completion, the facility will be the largest cellulosic ethanol plant in the world.

murex“Murex is a leading marketer in today’s ethanol market. Its team understands domestic and international ethanol dynamics and can hit the ground running to drive growth in the emerging cellulosic ethanol industry,” said DuPont Cellulosic Ethanol Commercial Leader Steven Ogle. “With this collaboration, DuPont is well-positioned to lead the deployment of cellulosic ethanol at a commercial scale.”

Murex has a strong presence in the domestic ethanol market and has been the largest exporter of domestically produced ethanol since 2010. Murex was one of the first marketers of advanced Renewable Identification Numbers (RINs) and developed an in-house due diligence program prior to the Quality Assurance Program that allows smaller producers of advanced RINs to deliver their products and RINs to market.

Cellulosic, Ethanol, Ethanol News

Senate Committee Considers Energy Tax Reform

Cindy Zimmerman

The Senate Finance Committee held a hearing today on Reforming America’s Outdated Energy Tax Code, led by chairman Ron Wyden (D-OR).

“It’s past time to replace today’s crazy quilt of more than 40 energy tax incentives with a
modern, technology-neutral approach,” said Wyden at the start of the hearing, adding that the disparity in how the tax code treats energy sources needs to end. “Traditional sources benefit from tax incentives that are permanently baked into law. But clean energy sources are stuck with stop-and-go incentives that have to be renewed every few years.”

The main goal of the hearing is to focus on extending the dozen or so tax incentives for alternative energy sources such as advanced biofuels, wind, and solar.

aeclogo“The title of the hearing is right,” said Advanced Ethanol Council Executive Director Brooke Coleman. “Investors are highly sensitive to protections offered by tax law, and today’s energy tax regime drives investment away from viable petroleum alternatives like cellulosic biofuels because oil tax breaks are richer and permanent. The short term fix is extending recently expired and existing tax incentives for clean energy this year, to buttress against those offered to fossil fuels permanently. But any broader discussion about America emerging as the leading energy innovator in the world starts and ends with the federal tax code. It simply won’t happen without serious energy tax reform.”

Among those testifying at the hearing today was former Sen. Don Nickles (R-OK), now a lobbyist who has represented several energy companies, who spoke against continuing wind energy tax incentives.

advanced biofuels, AEC, Cellulosic, Energy, Ethanol News, Government

Procter & Gamble’s $230 Mil Biomass Project Moves Forward

John Davis

albanybiomassA project to put a massive biomass facility at a Procter & Gamble facility in Georgia is moving forward. This article from the Albany (GA) Herald says the $230 million biomass facility has received the go-ahead from local officials and some tax incentives that will ensure the project comes to fruition.

The resolution gives the principles of the agreement, who will be united in the project as Albany Green Energy LLC, two years in which they will not be required to pay local taxes. After that, over the next 21 years, Albany Green Energy will pay $375,000 annually in taxes.

[P&G Global Business Development Manager Bob] Bourbon, who develops business partnerships for P&G Corporate, called the agreement on the biomass project “a partnership on steroids.” He noted that each of seven partners — Georgia Power, the Georgia Public Service Commission, Sterling Energy Assets, Procter & Gamble Corporate, Constellation New Energy, the federal government and the Payroll Development Authority — is vital to the project reaching the end zone.

“Take any one of these partners out of the equation, and it wouldn’t work,” Bourbon said. “Using my football analogy, yes, we’re at first-and-goal, but everyone who gets that close to the goal line doesn’t score. Everyone involved in this project is doing everything possible to make it work. If it doesn’t, there will be a very good reason.”

The 20-year partnership deal is seen as giving the local community a very steady economic anchor, while bringing more clean energy to the region.

The plant is expected to go online in the summer of 2017.

biomass

Chevy Offers Van with Biodiesel, E85 Options

John Davis

chevyvan1Getting close to the end of the year for automakers, which means plenty of them are trying to move what’s left of their 2014 inventory. If you’ve got a big bunch of kids and you’re in the market for some eco-friendly wheels, Chevrolet’s G-Series Express Passenger van might be just the thing to look at right now, with B20 biodiesel-compatible and E85 engine options available.

The powerful Duramax turbo-diesel V-8 is offered in some Express models, delivering best-in-class torque and horsepower. Known by its “LGH” engine code, it is rated at 260 horsepower (194 kW) and 525 lb.-ft. of torque (712 Nm).

Designed to meet more stringent government emissions requirements, the LGH Duramax employs a robust EGR cooling system, along with revised turbocharger tuning that helps enhance EGR performance. It also has a large-capacity selective catalytic reduction system. In fact, the engine features the latest in emission control technology, making it the cleanest Duramax engine ever produced. NOx emissions are controlled via a Selective Catalyst Reduction aftertreatment system that uses urea-based Diesel (Emission) Exhaust Fluid (DEF). The DEF is housed in a 5.83-gallon (20 L) tank and needs to be replenished about every 5,000 miles (8,000 km). Electrically heated lines feed the DEF to the emission system to ensure adequate delivery in cold weather…

A FlexFuel E85 version of the 5.3L V-8 is also available. It delivers the same horsepower and torque as its gasoline counterpart, but runs on E85 ethanol fuel or a mixture of E85 and gasoline. E85 contains 85 percent ethanol, a renewable fuel that is produced domestically.

As I said, this is definitely for a BIG family… or just anyone who needs to haul a bunch of people… as it comes in models able to carry up to 15 people and all their cargo.

Biodiesel, Car Makers, E85

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFNREL is hosing a free webinar, “Encouraging Solar Development through Green Energy Tariffs for Large Utility Customers,” on Thursday, September 18, 2014 from noon to 1:00 PM MDT. Speakers include Autumn F. Proudlove and Jim Kennerly with the NC Clean Energy Technology Center. Several utilities are beginning to create renewable energy tariffs for large customers looking to meet more of their energy needs with renewables. This webinar will provide key considerations for designing these tariffs in order to promote utility-sponsored solar development.
  • Pacific Ethanol, has announced an agreement with Kodiak Carbonic, LLC to sell CO2 from the Pacific Ethanol Columbia plant located in Boardman, Oregon. Kodiak plans to construct a liquefaction and dry ice processing plant adjacent to the Columbia facility and expects to purchase up to 200 tons of CO2 per day to sell to food processing and beverage producers.
  • The Resilient Communities for America (RC4A) Campaign has announced the Carbonn Cities Climate Registry (cCCR) as the Campaign’s official reporting platform. The cCCR platform will enable participating RC4A communities to share information about their climate resilience and clean energy actions, as well as greenhouse gas emissions baselines, targets, and reductions of cities and counties worldwide. Nearly 100 U.S. cities and counties are already reporting into the Carbonn platform, including 22 communities led by RC4A signatories.
  • Buffalo Lake Advanced Biofuels restarted Sept. 8th. The plant was idled in 2009, purchased and run briefly in 2012, then purchased out of bankruptcy and renamed. About 35 people are working at the newly restarted plant, which includes a small staff in New Jersey at the offices of current owners, West Ventures LLC. The Buffalo Lake, Minnesota ethanol plant first came online in 1997 as the 9 MMgy Minnesota Energy Cooperative, expanding to 18 MMgy before shutting down in 2009 during the industry downturn. It was restarted in June 2012 by Purified Renewable Energy LLC, with a purchase announced a few months later. Purified filed for bankruptcy in March 2013 and ultimately, the plant was purchased by one of its creditors, West Ventures.
Bioenergy Bytes