Cellulosic Making Progress Despite Uncertainty

Cindy Zimmerman

Advanced and cellulosic biofuels producers continue to press the administration for certainty in the Renewable Fuel Standard (RFS) to continue making investments for future expansion.

“Today we’re at the start, like oil was 160 years ago, or corn ethanol was four years ago, said Steve Hartig with POET-DSM Advanced Biofuels during a teleconference organized by the Biotechnology Industry Organization (BIO) highlighting progress in the industry. His company just celebrated the grand opening of a cellulosic ethanol plant in Iowa. “We have invested hundreds of millions of dollars in this and are convinced cellulosic ethanol will be a key part of our future energy mix.”

Abengoa Bioenergy plant in Hugoton, KS

Abengoa Bioenergy plant in Hugoton, KS

Chris Standlee with Abengoa Bioenergy said his company is also invested substantially in commercializing cellulosic ethanol technology. “Abengoa’s been working on perfecting this technology for over 10 years,” said Standlee, adding that their plant will be holding a grand opening in Hugoton, Kansas next month.

Also participating in the teleconference was Vonnie Estes with GranBio, a plant being built in Brazil using sugarcane straw and bagasse as feedstocks. She noted that the uncertainty of the RFS is impacting their plans because they intend to export at least half of their plant’s production to the U.S. “The company has spent over $200 million in capital on this plant,” she said. “The plant (will be) really good for the U.S. in that it’s a source of low carbon fuels into the market.”

All three company representatives noted that they are postponing decisions to increase production of cellulosic biofuels due to the uncertainty created by EPA.

BIO teleconference on cellulosic ethanol advancements
advanced biofuels, Audio, Cellulosic, Ethanol, Ethanol News, RFS

Minnoco Expands Higher Ethanol Blends in Twin Cities

Joanna Schroeder

Independent fuel retailer Minnoco is expanding its outlets with 18 new locations joining the brand. When completed, the brand will feature 24 retailers, many of whom will be offering higher blends of ethanol, such as E15, and biodiesel to consumers.

“Our owners believe we have a competitive advantage by offering more fuel choices like E15 to consumers,” stated Lance Klatt, executive director for Minnoco. “Our new brand not only draws in consumers for more affordable fuels but is also a great business model for retailers.”

Minnoco signLeveraging existing convenience store and automotive repair locations in many cases, retail owners are moving away from a branded oil contract into the independent brand of Minnoco. “With Minnoco, I’m able to offer E15 as a more competitive fuel to my customers at a much lower price vs. regular,” explained Rick Bohnen, president of Minnoco and owner of Penn Minnoco. “This is a better business model for me because it significantly reduces my operational costs vs. branded fuels and I’m able to pass the savings on to consumers.”

In addition, Minnoco retailers have more freedom to offer biofuels that are grown and produced in Minnesota. Though the product offering will vary slightly by retail location, Minnoco will be offering E15, E30, E85 and diesel along with regular grades of gasoline.

“All of our regular 87 gas already contains 10% ethanol,” explained Jerry Charmoli, Minnoco owner and a mechanic for more than 30 years. “E15 is approved for vehicles 2001 and newer and we’ve had zero problems, in fact my customers love the cost savings and extra performance.”

In response to the announcement today by Minnoco, Growth Energy CEO Tom Buis said, “Minnesota has always been a leader in offering renewable fuels to consumers. I am glad to see an increasing number of service station owners and convenience stores offer a higher performing, less expensive, renewable fuel option. Minnoco understands what consumers want, and also appreciates the importance of improving our environment, creating and supporting jobs right here in America that cannot be outsourced, and reducing our dangerous addiction to fossil fuels and foreign oil, all while saving consumers at the pump.”

Biodiesel, biofuels, E15, Ethanol, Growth Energy

Bobby Likis Car Clinic Globalcast Features Ethanol

Joanna Schroeder

likis-logoBobby Likis Car Clinic recent globalcast featured topic was ethanol with guest Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA). More specifically the two discussed issues around the Renewable Fuel Standard (RFS).

During the program, Dinneen explained that the RFS and ethanol production saves consumers money at the pump, decreases America’s foreign oil dependence, and helps rural America. He discussed the Environmental Protection Agency’s (EPA) proposed cuts to the RFS and the negative impact those cuts would have on consumers and investment in next-generation ethanol.

Dinneen said, “In today’s environment of misinformation and spin, it is absolutely vital that consumers know the truth about ethanol and understand the role the Renewable Fuel Standard plays in furthering America’s energy independence, reducing greenhouse gas emissions, and lowering the price of gasoline for drivers.” He adds, “I was proud to join Car Clinic’s Bobby Likis to give an overview of the political, regional, and agricultural factors that play into the future of ethanol production and explain the benefits of ethanol to drivers all across the country. Their votes of confidence in the RFS will count in the upcoming election.”

Likis, who is an automotive and ethanol expert, reflects, “When presented with facts – which Bob Dinneen delivers in easy-to-understand terms – American consumers and voters are smart enough to make the right decision at the polls in November. That’s how the RFS was passed in the first place. Clearly, the RFS has delivered to voters: lowering prices at the gas pump; reducing dependence on foreign oil; stimulating regional economies; giving the environment a fighting chance; and incenting investors to keep their money in the US as they research and develop new seed and other technologies to increase efficiencies and crop yields.”

automotive, biofuels, Ethanol, Ethanol News, RFA, RFS, Video

Administration Offers New Renewable Initiatives

Cindy Zimmerman

usda-logoAs USDA announced the investment $68 million in 540 new renewable energy and energy efficiency projects nationwide today, the White House offered new administrative actions to advance solar deployment and promote energy efficiency.

Secretary of Agriculture Tom Vilsack made the USDA announcement while in North Carolina to highlight USDA’s investments in rural renewable energy projects being funded through USDA Rural Development’s Rural Energy for America Program (REAP). Vilsack visited Progress Solar in Bunn, N.C., which received a $3.4 million REAP loan guarantee in 2012 for installation of a solar array.

At the same time, President Obama announced new executive actions to further advance the development of solar technologies across the country which includes commitments from a broad coalition of 50 public and private sector partners, including leading industry, community development organizations and housing providers in 28 states. “USDA is proud to play a key role in Obama Administration’s efforts to promote the use of solar technologies,” Vilsack said. “Of the REAP projects funded today, 240 projects are for solar investments of $5.2 million in grants and $55.3 million in loans.”

In North Carolina alone, Vilsack announced $55.3 million in new REAP program loan guarantees and grants for 22 solar energy projects. For example, USDA is awarding a $3 million loan guarantee to Broadway Solar Center, LLC to help finance a 5 megawatt solar array in Columbus County, a $4.9 million loan guarantee for a similar project in Hertford County and a $2.1 million guarantee for a project in Warren County.

Government, Solar, USDA

Vermont Utility to Turn Sunflowers into Biodiesel

John Davis

greenmtnpowerA local utility in Vermont will be turning sunflowers into biodiesel and livestock feed. Green Mountain Power announced a new collaboration that will convert the seeds from 20 acres of sunflowers into the green fuel and the feed.

“Green Mountain Power is leading the way in many local energy initiatives,” said Green Mountain Power President and CEO Mary Powell. “Using Vermont sunflowers to power our vehicles and heat our buildings is a beautiful way to keep our energy local and clean.”

Twenty acres of sunflowers are growing at the State Line Farm Biofuels in Shaftsbury and another ten acres are growing at the Ekolott Farm in Newbury. When the oilseeds are harvested this fall, they will be dried and pressed, then the raw oil will be converted to biodiesel, or B100. The solid portion of the seed, the meal, is valuable as a livestock feed. Depending on the crops’ success, the cost of fuel to Green Mountain Power could be up to one dollar less than current B100 prices.

“It is so great to be part of this innovative test with GMP,” said John Williamson of State Line Farm Biofuels. “Projects like this really help support farmers, plus it’s beautiful to see the fields of sunflowers and even more beautiful to realize it will provide a clean and local power source.”

The project is a partnership between GMP, University of Vermont Extension, and the Vermont Bioenergy Initiative, a program that connects diversified agriculture and local renewable energy production for on-farm and community use.

Biodiesel

FAPRI: Biodiesel, Ethanol Feedstocks Bigger than Expected

John Davis

FAPRI logoA new report shows that the main feedstocks for biodiesel and ethanol, soybeans and corn, are going to have bigger harvests than previously expected. The Food and Agricultural Policy Research Institute at the University of Missouri says while the big crops will push prices for those feedstocks down – even further down than what was projected just a couple of weeks ago – soybean and corn prices will recover a bit as markets adjust.

– Larger corn and soybean crops translate into lower projected 2014/15 prices for many grains and oilseeds. Corn prices drop to $3.50 per bushel, soybeans to $9.92 per bushel… In all … cases, these projected prices are close to the midpoint of the price ranges reported in the September USDA World Agricultural Supply and Demand Estimates.

– Larger crops in 2014/15 also result in larger beginning stocks and total crop supplies in 2015/16. As a result, corn and soybean prices for next year’s crop are lower than projected in August. Corn prices average $3.80 per bushel in 2015/16, and soybean prices drop to $9.04 per bushel.

– Prices recover as markets adjust. Corn prices average $4.10 per bushel, soybeans average $10.21 per bushel … over the 2016‐18 period.

Previously, FAPRI said that corn prices would stay at about $4 per bushel for corn, but the new, bigger numbers for yield estimates push those prices down even more.

Biodiesel, corn, Ethanol, Ethanol News, Soybeans

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