The Export-Import Bank of the United States (Ex-Im Bank) has authorized a pair of direct loans to two wind power projects in Peru for the export of wind turbines manufactured in Hutchinson, Kansas, and Fort Madison, Iowa, by Siemens Energy Inc. The financing, almost $65 million in total, represents Ex-Im Bank’s first renewable-energy transactions in Peru and will support approximately 800 U.S. jobs in Kansas and Iowa, according to bank estimates derived from Departments of Commerce and Labor data and methodology. Additionally, 20 percent of each transaction should provide indirect support to small-business exporters.- Finavera Wind Energy Inc. has announced they have signed an agreement to acquire 100% of the equity of Solar Alliance of America, Inc., a corporation under the laws of California in a transaction valued at $6 million USD. Under the terms of the agreement, Finavera will acquire Solar Alliance for $4 million USD in cash and $2 million USD in stock, based on the volume weighted average 20-day trading price of Finavera following the closing of the transaction, with a floor price of not less than $0.21 per share. This represents a premium of approximately 45% over the Company’s previous closing price.
- Investment into the UK’s distributed power generation market, which comprises wind, solar Photovoltaic (PV) and combined heat and power installed capacity, will witness a significant decline from almost $2.5 billion in 2013 to $939 million by 2019, says research and consulting firm GlobalData. “Policy Amendments Leave the UK Distributed Power Generation Market in Disarray,” states that investment, which will fluctuate annually between 2013 and 2015, will begin declining from 2016 until the end of the forecast period, as a result of various anticipated policy amendments.
- Solar Microgrid of St. Louis was recently selected to lead the solar contractor for the City of Chicago’s solar program – called “Solar Chicago” – that Enables homeowners in the Chicago area to purchase solar at the group-discounted rate. The Chicago program is half over, and is expected to double the original target of 750 registrants.
Report: US & EU Move To Relax Biofuel Targets
According to a new report from GlobalData, the U.S. and EU are considering relaxing targets on biofuels causing concerns around the growth of the industry and the role of biofuels in global renewable energy targets. The U.S. is considering reducing its biofuels target for 2014 and from 18.2 billion to 15.2 billion gallons while the EU has lowered its ceiling on food-based biofuels used in the transportation fuel mix from 10 percent to 7 percent.
The Third Quarter 2013 Regulatory Outlook finds that the U.S. Environmental Protection Agency is considering reducing 3 billion gallons from the 2014 renewable volume obligations, (the EPA has submitted its final rule to the Office of Management and Budget but until approved, the industry does not know the final volume requirements) which would mark the first reduction to the Renewable Fuel Standard (RFS) since its implementation in 2007.
Carmine Rositano, GlobalData’s Managing Analyst covering Downstream Oil & Gas, said, “While gasoline demand has declined over the past seven years, the approved annual use of ethanol in gasoline has not been adjusted to reflect this change, as increasing amounts of biofuels have been mandated to be blended into petroleum products each year through to 2020. The refining industry has warned that increasing ethanol use in gasoline would exceed the 10% mix that dominates car engine designs and the gasoline fueling infrastructure, so revising the mandated amounts for biofuels in the energy mix would make economic sense.”
While U.S. biofuels targets are expected to be cut to mirror the decrease in gasoline demand, the EU has a different reason for its own target adjustments.
Rositano explained, “The EU’s new 7% biofuels ceiling comes in response to claims that using biofuels made from food crops increases inflation on food costs. As the EU is still aiming to achieve 10% of transportation fuels made from renewable energy sources by 2020, the gap between this target and the 7% ceiling of food-based biofuels indicates a reliance on next generation biofuels made from algae, waste and other materials.”
Matthew Jurecky, GlobalData’s Head of Oil & Gas Research, added, “It’s normal for agencies to review challenged policy. Ongoing analysis on the actual reduction of greenhouse gases, inclusive of the entire value chain, the impact they’ve had on food crops and prices, and the simple economics associated with producing them, underlies the regulatory shift. Biofuels will, however, remain a part of meeting mandated renewable energy and emissions targets, but other industries and policies, such as more stringent efficiency standards, will also form a part.”
Renovagen Uses Crowdcube to Raise Funds
UK company Renovagen has used the crowd funding website Crowdcube to raise £263,000 with the support of 160 investors. The fundraising campaign was 76 per cent oversubscribed and coincides with the successful completion of a 6kW prototype version of Renovagen’s patented “Roll-Array” transportable solar power system that enables large rollable solar arrays to be conveniently and quickly deployed from small containers.
Renovagen has created a transportable solar power system that they say has 10 times the power capacity of competing photovoltaic systems and can be deployed in just a few minutes. The company said this technology is of strong interest to military, disaster relief and Mining customers where the cost of energy from diesel generators in remote locations is often excessive due to the extremely high costs of transporting diesel fuel while alternative solar systems are slow and expensive to move or under-powered. Renovagen’s technology has the potential to pack 100kW arrays into 20ft ISO containers, with multiple containerised systems deployable in parallel to create multi-megawatt power plants.
“This is an extremely exciting time for Renovagen, having achieved a huge amount of progress in developing the technology this year, we finally have a 6kW system live-running and meeting all our performance expectations,” said John Hingley, Founder and CEO. “This product has huge potential for reducing carbon emissions and local pollution caused by diesel generators in remote and sensitive environments – whilst saving our customers money and even saving lives in some Disaster Relief and Military situations. We’re extremely pleased to have secured the funding to move to the next stage in our development, including pilot deployments and market launch, and would like to thank the 160 investors who supported us through Crowdcube”.
Early test results of the prototype have demonstrated power output and mechanical performance that meets design targets, according to Renovagen. The company now plans further field testing of the prototype and continued development in order to launch the product during 2015. The company intends to implement a number of pilot projects in late 2014/early 2015 in order to further proof the technology and its efficacy.
Canada Handing Out New Grants for Biomass Research
Researchers looking to turn biomass into energy will get some help from one of the Canadian provinces. Manitoba has doubled the Biomass Energy Support Program funding to $1 million, with the additional $500,000 of new funding targeted to applied research projects that will support the growth of the biomass industry.
“Manitoba’s green economy creates new opportunities for biofuel manufacturers and additional markets for producers,” said [Agriculture, Food and Rural Development Minister Ron] Kostyshyn. “Research and development is needed to build capacity across the province and address any gaps in our biomass sector. Through this strategic investment, we can support even more Manitoba farms and businesses as they invest in a more sustainable future.”
The new funding will be directed to applied research projects that address gaps or identify opportunities for business and technology development in the biomass sector. The minister noted that priority will be given to projects with short turnaround times that support Manitoba’s coal-reduction strategy and that project results will be shared with producers, processors and other stakeholders.
Eligible biomass fuels include:
– Agricultural residue such as wheat and flax straw, sunflower hulls or compacted biomass-like wheat and oat pellets;
– Forestry residues such as wood chips or salvaged timber; and
– Biomass crops such as switchgrass, willow and poplar.
Researchers wanting some of the available funds need to apply by Sept. 1. More information is available at www.manitoba.ca/agriculture/innovation-and-research/biomass-energy-support-program.html.
Navy Remains Full-Steam Ahead on Biofuels
The U.S. Navy is moving full-steam ahead, despite some obstacles that have come up for its program on biofuels. This article from Motley Fool posted on the NASDAQ website says the Navy wants to get 50 percent of its energy from alternatives to petroleum. To make sure these fuels are ready for the fight, the service is looking at drop-in fuels, and with a provision in the recent Defense Department appropriations, the Navy has to do it at the same cost as petroleum-based fuels.
In the past the Navy has tested advanced biofuels that cost upward of $26 per gallon. That price, of course, didn’t sit well with many taxpayers, which is why the National Defense Authorization Act was passed, which limited the Department of Defense from paying higher prices for alternative fuels than it pays for petroleum-based fuels.
In order to combat the high price of commercial drop-in biofuels, the Navy and the U.S. Department of Agriculture, or USDA, worked together to create the Farm-to-Fleet program. Under the program, producers seeking to offer drop-in biofuels can apply to the USDA Commodity Credit Corporation for grants that will offset the cost of the feedstocks needed to produce these drop-in biofuels. Further, some drop-in biofuels can qualify for Renewable Identification Numbers, which can be sold to further offset the cost. The hope is that between these two offsets producers will be able to supply a drop-in jet fuel, which is the most costly fuel the navy uses, for the same price as traditional jet fuel.
Earlier this summer, a government procurement report showed the U.S. Navy has for the first time put biofuels in the mix for requests for military-specification diesel fuel and jet fuel.
Advanced Biofuels Industry Comments on 2014 RFS
The advanced biofuels community is responding this week to the Environmental Protection Agency’s (EPA) submission of the final 2014 Renewable Fuel Standard (RFS) to the White House Office of Management and Budget (OMB) where it will be reviewed. Although the rule is not public, groups are speculating on what the final rule entails with hope still that advanced biofuels will not see a reversal in volumes.
“A little less than a year ago, press leaks first suggested that EPA might reduce the 2014 renewable fuel standard (RFS) for advanced biofuels to as little as 2.2 billion gallons, which is substantially lower than current production,” said Advanced Biofuels Association (ABFA) President Michael McAdams when hearing the rule had been sent to OMB.
“Since that time, ABFA members and our many allies have clearly demonstrated that such reductions would fall disproportionately on advanced biofuels and represent a significant reversal of the Obama administration’s previous support for our industry. We hope the final rule will be a major improvement and encourage the White House to set RFS volume obligations at levels that are consistent with our industry’s current and projected production capacity for advanced and cellulosic biofuels,” McAdams added.
National Biodiesel Board (NBB) CEO Joe Jobe is hoping to see an increase in biodiesel from the proposal released last year. Joe explained the the proposed rule would cap out biodiesel and cause a dramatic reduction in production.
“This is a cornerstone energy policy that has demonstrated that it works,” said Jobe. “Last year we were able to demonstrate that the program works. We grew from a little over 1 billion gallon in 2012 to just 2 billion gallons in 2013.” Jobe continued by stressing this allowed for investment and growth – all elements of a successful energy policy.
Jobe noted that biodiesel has allowed the advanced biofuel category to be met every year. While OMB has 90 days to review the rule, Jobe hope it will go faster.
Interview with Joe Jobe, National Biodiesel BoardAlgae Systems Converts Algae to Biofuels, Clean Water
Algae Systems has completed a biofuel production demonstration project in conjunction with Japan’s IHI Corporation. The demonstration plant is located in Daphne, Alabama and the process combines wastewater with algae to produce the world’s first energy-generating wastewater treatment process, using carbon-negative technologies. This process will yield both biofuel and drinking water.
Matthew C. Atwood, president and CEO of Algae Systems explains that while algae is a component in a number of worldwide experimental production strategies, their approach differs by using a system that can apply a variety of algae types to production, adding value by treating wastewater, and producing a drop-in fuel solution using hydrothermal liquefaction to produce fuels that do not need to be blended.
“This is the first demonstration of producing clean water and biofuel from wastewater and algae. We have demonstrated that we can treat wastewater at a low-cost while beating the current price of fuel,” said Atwood.
The project approach takes local strains of algae to increase production rates and optimize wastewater treatment opportunities and focuses on a systems approach. Floating membrane photobioreactors accept wastewater from a local community municipal wastewater utility, drawing nutrients from the wastewater to 
promote algae growth. The algae consume nutrients in the wastewater, reducing the cost of treating wastewater. In this approach, municipal wastewater becomes an asset to produce energy, rather than a commodity to be expensively processed. Photosynthesis creates the chemical reactions that can power our future.
Atwood said the use of offshore photobioreactors means that a valuable land footprint would not be required to deploy the system commercially, and the motion of waves and wind provides ideal temperature and mixing controls as well as a reduction of operating costs. From an environmental perspective, ecological dead zones can also be eliminated.
Another feature of the demonstration facility, said Atwood, is significant advancements made in the production of fuels from biomass. Algae Systems has demonstrated a new proprietary technology for the conversion of wet algae and other biomass feedstocks into biocrude oil, and has successfully demonstrated upgrading the bio-crude oil into diesel, jet and gasoline.
“Building commercial plants around the world that will enable low-cost wastewater treatment and fuel production,” said Atwood when explaining what success looks like. “Our next steps are to find commercial sites and raise additional financing for the company to expand.”
BioEnergy Bytes
- Maxwell Technologies, Inc. has announced that Win Inertia, an engineering firm specializing in power electronics, energy storage and control and communication systems, is using its ultracapacitors for a stationary wayside braking energy recuperation system at an electric rail system in Cerro Negro, Spain. Win Inertia designed and installed the system under a contract with the Spanish government’s Administrator of Railway Infrastructures (ADIF). In this installation, the system also enables ADIF to store excess energy in a battery bank that supplies an electric vehicle charging station located at the rail station. The facility also seamlessly integrated a photovoltaic generator to supply additional energy if required.
- Ellomay Capital Ltd., an emerging operator in the renewable energy and energy infrastructure sector, has announced the approval by the Italian parliament and the conversion into law of the Italian decree providing for a decrease in the Feed-in-Tariff guaranteed to existing photovoltaic plants with nominal capacity of more than 200 kW (“Law 116/2014”).
- Genera Energy has released a new infographic featuring a visual overview of biomass feedstock and guidelines for choosing the best solution for every biomass project. The four-page infographic highlights key supply chain elements and explores which biomass crops are best suited for an application.
- Washington, D.C. has allocated $200,000 to be used to create a kinetically-powered “Connecticut Avenue Overlook Parklet“. The tech to generate electricity from the footsteps of passersby will come from 100 Pavegen kinetic pavers that are expected to generate an annual 456.25 kilowatts of energy. That energy will be stored and used to power lighting for the 850-square-foot mini-park, which is being designed by ZGF Architects LLP.
Verizon Goes Big With Solar
Verizon is set to become the number one solar producer among U.S. communication companies. They have announced an investment of nearly $40 million to expand their onsite green energy program. This year, the company will install 10.2 MW of new solar power systems at eight Verizon network facilities in five states: California, Maryland, Massachusetts, New Jersey and New York. This new investment nearly doubles the amount of renewable power generated by six Verizon solar facilities last year. To date, Verizon has invested nearly $140 million in onsite green energy. With the 2014 solar investment announced, Verizon is on target to deploy upward of 25 MW of renewable energy.
“Our investment in onsite green energy is improving the quality of life in the communities we serve by reducing CO2 levels and reducing strain on commercial power grids, while increasing our energy efficiency,” said James Gowen, Verizon’s chief sustainability officer. “By almost doubling the amount of renewable, solar energy we’re using, we are making further progress toward Verizon’s goal of cutting our carbon intensity in half by 2020, in part, by leveraging the proven business case for clean-energy alternatives to the commercial power grid.”
With this announcement, Verizon is on track to become the #1 solar-power producer among all U.S. communications companies, according to the Solar Energy Industries Association (SEIA). “Based on its existing solar power capacity and onsite generating systems, combined with its new solar energy expansion plans for 2014, it’s clear that Verizon is on a path to become the solar-power leader in the U.S. telecom industry,” said SEIA president and CEO Rhone Resch. “In fact, we project that Verizon will be among the top 20 of all companies nationwide in terms of the number of solar installations it operates, and one of the top 10 companies in the U.S. based on solar generating capacity.”
Verizon contracted with SunPower Corp. to design and install all of the solar systems. The new equipment, consisting of high-efficiency rooftop, parking-structure and ground-mounted solar photovoltaic systems, will vary from site to site.
“With this milestone investment, Verizon is advancing its position among the handful of corporate leaders demonstrating how American businesses can serve their communities and control energy costs with on-site solar power generation,” said Howard Wenger, SunPower president, business units. “We are very pleased to extend our partnership with Verizon, helping the company lower the long-term cost of energy at more facilities with SunPower’s high performance technology and services.”
Resch added, “This is a significant investment by Verizon, which will provide a boost to the economy, as well as the environment. Long a world leader in telecommunications services, Verizon is quickly becoming a leader in the deployment of green energy, too. When these projects are completed, Verizon will have nearly 16 MW of installed solar capacity, ranking it among the Top 10 companies in the United States. We commend Verizon on its commitment to the environment, and doing what’s best for current and future customers.”
No RFS = Gas Prices Decided by Foreign Chaos
With oil prices on a roller coaster because of the deteriorating situation in the Mideast, Americans United for Change stress that Americans need the EPA to stand by a secure, safe, reliable energy source the U.S. has complete control over: clean-burning, homegrown renewable fuels. Preserving the Renewable Fuel Standard (RFS) and cheaper choices at the pump for American consumers means more stability in gas prices, even in times of instability.
The turmoil in the Middle East is continuing causing volatility in gas prices. And with Labor Day around the corner, gas prices are expected to jump just in time for drivers to hit the roads. One solution to keep gas prices lower? Ethanol. As Jeremy Funk, communications director for Americans United for Change points out, the RFS would ensure ethanol is still available for consumers to choose at the pump.
Yet again, The U.S. Environmental Agency (EPA) has just announced the final biofuel volumes of the RFS for 2014 and it seems unlikely the EPA will announced its proposed RFS volumes for 2015 by mid-November as required.
“If anything should give the EPA pause before deciding to roll back the Renewable Fuel Standard as they have proposed, it’s the bubbling turmoil in Iraq,” said Funk. “That’s why the nation can’t afford to scale back the RFS now and put all our eggs in Big Oil’s basket.”
Funk explained that the oil industry has spent millions to rig the system against the homegrown competition. Those companies’ efforts — aside from leading to higher gas prices — would move American jobs overseas, reduce air quality, and contribute to climate change. That’s why American farmers, renewable energy leaders, veterans, nonprofit organizations, and others have come together to demand protection for the RFS. And Funk said they want consumers to join the fight for the RFS and demand lower gas prices and choice at the pump.