Tom Buis Discusses Ethanol Challenges at FEW

Joanna Schroeder

The 30th Annual Fuel Ethanol Workshop (FEW) kicked off this week with an annual ethanol industry update from Growth Energy’s CEO Tom Buis. Leah Guffey was able to catch up with Buis after his presentation and asked him what some of the biggest challenges facing the ethanol industry are right now.

growth energy Tom Buis 2014 FEW“The most immediate challenge confronting us is what the EPA and the administration is going to with the 2014 renewable fuel volume obligations (RVOs),” answered Buis. This is in essence what the industry calls the 2014 Renewable Fuel Standard.

The rule, noted Buis, should have been finalized by January 1, 2014. He said the Environmental Protection Agency (EPA) is late and the proposed rule is a very controversial rule. “The proposed rule really missed the mark in our opinion,” said Buis. “We don’t think they based it upon the facts. We’ve spent the last six months trying to convince them they got it wrong and they’ve got to move it forward not backwards.”

When asked when he thought the final rule would come out Buis answered, “Pick your rumor.” He said there were over 300,000 comments about the proposed rule and he believes EPA is working as fast as they can.

While there are many steps that have to be taken before the rule can be finalized, Buis said, “Hopefully they get it right. I’ll take it late if it’s right as opposed to early and wrong.”

Learn more about some of the challenges facing the ethanol industry in Leah’s interview with Tom Buis:Interview with Growth Energy CEO Tom Buis

Check out the 2014 Fuel Ethanol Workshop photo album.

Audio, biofuels, Ethanol, FEW, Growth Energy

Argonne Scientists Blast EWG Corn Ethanol GHG Report

Joanna Schroeder

A recent Environmental Work Group corn ethanol greenhouse gas report has caused lifecycle analysis experts and economist from Argonne National Laboratory and three universities to lash out and what they call “erroneous conclusions”.

The experts isEWG report Ethanols broken promisesued a scathing 13-page response to EWG’s May report titled “Ethanol’s Broken Promise.” EWG “confused parameters” and “misunderstood” previous modeling results, according to experts from Argonne, North Carolina State University, Purdue University and University of Illinois-Chicago. “…based on an analysis of the methodology EWG used and a comparison of their results to those in the literature, from models, and from other data sets, EWG appears to have overestimated the amount of land converted for corn farming between 2008 and 2012. Second, EWG used emission factors that appear too high.”

More specifically, the experts found the following problems—among many others—with EWG’s report:

  • “EWG confused parameters in GREET with those in an economic model, the Global Trade Analysis Project (GTAP).”
  • “EWG misunderstood EPA’s GHG emissions for years 2012 and 2017.”
  • “In their report, EWG picked the EPA 2012 GHG emissions for corn ethanol and applied them to the EPA-proposed reduced volume for corn ethanol in 2014 to make the erroneous conclusion that the proposal resulted in 3 million tonnes of CO2 reduction in 2014.”
  • “…the emission factors they applied are high compared to those in other reports and studies that take into account important variations in initial and final land states.”
  • The satellite data set used by EWG is “…explicitly not designed to be used for pixel-by-pixel or localized analyses.”
  • The land use change data used by EWG is “…based on data that is decades old, reflecting wetland conversion over a much longer time horizon.”
  • The report “…overestimated wetland conversion, especially for the conversion of wetlands to corn farms.” Wetlands and grasslands conversion estimates are “…too high when compared with estimates in other studies and data sources.”

The authors also point out that EWG is stuck in the past when it comes to lifecycle analysis. They write, “Since 2009, when EPA conducted corn ethanol LUC GHG modeling…, significant efforts have been made to improve economic models and soil carbon models to better estimate biofuel LUC GHG emissions. EPA and other federal agencies should consider updating RFS LUC modeling so that up-to-date LUC results can be used for biofuel policy making.”

biofuels, corn, Environment, Ethanol, Ethanol News, global warming, Indirect Land Use

Sierra Club Launches Wind Energy Jobs Ad Campaign

Joanna Schroeder

With uncertainty around the major federal wind incentive, the Sierra Club has launched a national ad campaign urging Congress to reauthorize the critical incentive for domestic wind energy investments. The campaign focuses on Members of Congress with wind manufacturing jobs in their districts and states that are at risk of the Wind Production Tax Credit is not renewed.

The first wave of ads targets 20 House members who have been silent as the Wind Production Tax Credit has expired, and involves a television advertisement targeting Congressman Tim Walberg (MI-07) as well as geo-targeted online ad buys in 20 other districts. These members represent districts and states with a growing wind industry who have not taken a position in support of extending the federal Production Tax Credit for Renewable Energy. In most cases, they have taken no position at all.

The Wind Production Tax Credit expired at the end of last year, in part, said the Sierra Club, because of new opposition from groups backed by the billionaire Koch Brothers and other dirty fuels interests who’ve also fought to preserve the $4 billion in annual tax breaks for the oil and gas industry.

“The Wind Production Tax credit is arguably one of the best bets we’ve made on clean, domestic energy,” said Dave Hamilton, Director of Clean Energy for Sierra Club’s Beyond Coal campaign. “It encourages huge investments, creates good American jobs, helps our country become more energy independent, and cuts air and water pollution. But many in Congress are failing to act, leaving thousands of American workers and communities across the country blowing in the wind.”

The wind industry employs more than 80,000 American workers and produces enough clean energy to power 15 million homes. It saves more than 30 billion gallons of fresh water each year compared with other energy sources. According to the American Wind Energy Association, if growth remains steady, the industry will produce 20 percent of America’s electricity by 2030.Read More

Electricity, Legislation, Renewable Energy, Video, Wind

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFGT Advanced Technologies Inc., has announced that it has secured a project win for its proprietary, next-generation HiCz continuous feeding puller technology that is expected to help enable the solar industry’s transition to higher efficiency, lower cost solar material. The company has entered into an agreement with Qatar Solar Energy (QSE) to supply its HiCz(TM)200 furnaces for QSE’s integrated PV manufacturing project in Doha, Qatar. QSE has opened a 300MW integrated facility and plans for the project to reach 2.5GW. The supply agreement is subject to QSE’s receipt of government approvals and financing, at which time GT would expect to receive the equipment order.
  • Dyadic International, Inc. a global biotechnology company focused on the discovery, development, manufacture and sale of enzymes and other proteins, announced today the appointment of Michael Tarnok to the company’s Board of Directors. Mr. Tarnok will also serve on the company’s audit and compensation committees.
  • Sustainable Energy Fund invites not-for-profit and governmental entities in Pennsylvania to apply for a limited number of loans or leases at zero percent financing to complete energy efficiency or renewable energy projects. Projects must reduce energy consumption of non-sustainable resources or generate energy from sustainable resources. Total available funding through the Sustainable Energy Finance Program is $425,000 with funding ranging from $5,000 to $85,000. All applications will be graded using a merit-based matrix.
  • BioFuel Enery Corp. has announced it has entered into a definitive agreement with certain affiliates of Greenlight Capital, Inc. and James R. Brickman pursuant to which the Company will acquire the equity interests of JBGL Builder Finance LLC and certain subsidiaries of JBGL Capital, LP (collectively, “JBGL”) from Greenlight and Brickman. Pursuant to the terms of the Agreement, the Company will acquire JBGL for $275 million, payable in cash and Company common stock. The cash portion of the purchase price will be funded from the proceeds of a $70 million rights offering to be conducted by the Company and approximately $150 million in debt financing provided to the Company by Greenlight.
Bioenergy Bytes

Don’t Miss the Innovators Panel at ACE’s Conference

Joanna Schroeder

The American Coalition for Ethanol’s (ACE) 27th annual Ethanol Conference is set for August 4-6, 2014 in Minneapolis, Minnesota and the line-up of great speakers and sessions is already being unveiled. The Innovators Panel on August 5th will include: Ron Alverson from Dakota Ethanol; Ray Baker with Adkins Energy; Delayne Johnson with Quad County Corn Processors; and Mike Erhart with Prairie Horizon Agri-Energy.

Some of the topics panelists will cover include projects to add biodiesel or renewable diesel to existing ethanol plants, progress with conversion of corn kernel fiber to cellulosic biofuel, and steps to reduce the carbon footprint of ethanol.

“The people who make ethanol are always looking forward, they are never satisfied with the same old, same old. This panel discussion will be an outstanding example of the type of product and process technology innovations being developed by ACE members to create new revenue streams and improve efficiency,” said Brian Jennings, executive vice president of ACE.

Power_by_people_bannerThe ACE Conference will also feature a Retailer Roundtable, involving gas station owners who are making money and attracting new customers by selling higher blends of ethanol fuel. Other topics to be covered at the event include a discussion of the octane and high performance potential of ethanol in automobiles, a look at proposed regulations based upon the Food Safety Modernization Act, overseas opportunities for ethanol producers and an examination of rail regulations and possible long-term improvements of the domestic rail system.

Click here to register to attend the upcoming ACE Conference.

ACE, advanced biofuels, Biodiesel, biofuels, Cellulosic, conferences, Ethanol

Green Plains Purchases Supreme Cattle Feeders

Joanna Schroeder

Green Plains (GPRE) has acquired the assets of Supreme Cattle feeders from Agri Beef Co. The deal includes the feed yard doing business as Supreme Cattle Feeders and the Cimarron Grain Storage facility located near Kismet, Kansas.

“Supreme Cattle Feeders is one of the premier cattle feed yards in the U.S. and this operation is an ideal adjacent business for Green Plains,” said Todd Becker, president and CEO. “The green_plainscustom cattle-feeding business gives us the ability to further process our distillers grains and corn oil, and extend our corn origination network. We also believe that this transaction will be accretive to 2014 earnings.”

Becker said Supreme Cattle Feeders will remain a custom cattle-feeding business -a great asset to their portfolio of value-added processing facilities. He notes that GPRE’s focus is to ensure that current customers continue to be served at the highest level. In addition, Becker said they plan on retaining all of the current employees at the facilities.

Robert Rebholtz, Jr., President/CEO of Agri Beef Co. said, “The key to our decision to sell Supreme Cattle Feeders was Green Plains’ financial strength, commitment to operational excellence and risk management capabilities. We are thrilled by the great opportunities this combination will provide Supreme’s long-time customers and employees. We look forward to continuing our own cattle-feeding relationship as a Green Plains customer for years to come.”

GPRE said Supreme Cattle Feeders will remain a custom cattle-feeding business and will continue to operate under its current name. Supreme Cattle Feeders financial results will be reported as a part of Green Plains’ agribusiness segment. The operation consists of approximately 2,600 acres of land with 800 acres allocated to the feedlot operation that has the capacity to support 70,000 head of cattle. Supreme’s current corn storage capacity, including the Cimarron Grain facilities, is approximately 3.8 million bushels. Supreme Cattle Feeders will continue to be directed by its current management team, with transition support from Agri Beef Co. Agri Beef Co will continue its relationship as a cattle-feeding customer of Supreme. Agri Beef Co. has owned and operated Supreme Cattle Feeders for the past 19 years.

Agribusiness, biofuels, corn, Ethanol, Ethanol News, Renewable Energy

Canadians Breathing Easier with Biodiesel

John Davis

asthmaCRFAOur friends north of the border are breathing easier thanks to biodiesel. This news release from the Asthma Society of Canada and Canadian Renewable Fuels Association says cutting vehicle emissions is key to improving air quality, and the groups are joining forces to get Canada to increase its current 2 percent renewable fuel content requirement to a 5 percent blend by the year 2020.

Biodiesel and renewable diesel cut hydrocarbon emissions by more than 95 percent when compared to petroleum diesel. Its use in conventional diesel engines substantially reduces emissions of unburned hydrocarbons, carbon monoxide, sulfates and particulate matter.

Renewable diesel also reduces aromatic compounds—whichh are known carcinogens—by more than 75 percent and emissions of smog-forming particulate and carbon monoxide by 50 percent compared to traditional petroleum diesel.

“Any regulation that reduces emissions produced by diesel-powered vehicles is good news for people with asthma, respiratory allergies and other lung illnesses,” said Asthma Society of Canada president and CEO Robert Oliphant. “There is a direct link between asthma exacerbations, hospital admissions, and untimely deaths and dirty fuels. Speeding up the process of blending more renewable biofuel would lead to a healthier Canada.”

“The more biofuels we use in our fuel pool, the greater the environmental and health benefits will be,” said CRFA president W. Scott Thurlow. “Higher inclusion rates for renewable fuel products will make our air cleaner and help our communities breathe easier. At the same time, expanding renewable diesel use into other sectors, such as public transportation and rail, would help reduce smog and emissions in some of our most congested cities and communities.”

The groups say about 21,000 Canadians die from heart and lung diseases brought on by breathing polluted air every year, with asthma accounting for approximately 80 percent of chronic disease cases and continuing to be a major cause of child hospitalization.

Biodiesel

Calif. to Crack Down on Biodiesel Feedstock Thieves

John Davis

california_state_flagTheft of kitchen grease to be made into biodiesel has been a growing problem, as entrepreneurs and home brewers have caught on to the low-cost way to make the fuel. In California, according to the Crown City News, a measure to crack down on stealing what used to be just thrown out is advancing in the state legislature, passing by unanimous vote in the Assembly and now heading to the state Senate.

“Restaurants are finding that their used kitchen grease is a hot commodity that has sparked grease wars in a battle over who can cash in on the ‘liquid gold’ that is then converted into biodiesel fuel,” explained [bill sponsor Chris Holden (D-Pasadena)]. “This bill closes a loophole in enforcement code that will make it easier to stop the bad players.”

According to the California Department of Food and Agriculture, a typical fast-food restaurant produces 150-250 pounds of grease a week and a fully loaded pumper truck could bring in as much as $900 at a recycling center. Thieves often strike in the night and syphon off the used grease and sell it on the black market.

The bill, AB 1566, beefs up requirements for licensed haulers, increases penalties for stealing grease and allows law enforcement to impound vehicles for up to 15 days.

Biodiesel, Legislation

Corn Growers CEO Addresses FEW

Cindy Zimmerman

few14-tolmanNational Corn Growers Association CEO Rick Tolman took the podium to address the general session at the Fuel Ethanol Workshop in Indianapolis this week. It’s the 30th year for the workshop and during his remarks he commented on how things have changed in the past 30 years – from the acres of corn planted and bushels harvested to the gallons of ethanol produced and where things are headed in the future of the industry.

“It’s so exciting to see the tremendous growth the industry has made,” said Tolman. “We have so many ethanol plants now and it’s part of the mainstream, it’s in almost every gallon of gasoline across the country … and ten years ago that wasn’t the case … we’ve made tremendous progress.”

In an interview after his address at FEW, Tolman talked about this year’s corn crop, which is expected to be another record. Emergence pushed past the five-year average last week, according to the latest USDA report, and 75 percent of all acres are rated in good to excellent condition as of June 8.

Tolman says while we have planted a few less acres this year we continue to push through the 10-million bushel barrier that was so difficult to reach early in his 14-year tenure as NCGA CEO. He will be stepping down from that position at the end of September. Interview with NCGA CEO Rick Tolman

2014 Fuel Ethanol Workshop Photo Album

Audio, corn, Ethanol, Ethanol News, FEW, NCGA

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFThe Formula Society of Automotive Engineering series will be in Lincoln, Nebraska June 18–21, 2014. More than 250 universities from across the world will compete at Lincoln Airpark to showcase their fabricated Formula-style vehicles. Formula teams will compete in acceleration, autocross, skid pad, endurance and fuel economy. The creation of a Formula car also encompasses sales, manufacturability, cost analysis and safety. The Husker Motor Sports team is comprised of engineering students of the University of Nebraska – Lincoln. The Nebraska Ethanol Board is a proud supporter of the Husker Motor Sports Team.
  • Following a vote at its board meeting, the Solar Energy Industries Association (SEIA) announced that Nat Kreamer, President and CEO of Clean Power Finance, has become Chairman of the SEIA Board, effective immediately. Tom Starrs, Vice President of Market Strategy and Policy for SunPower Corp, will serve as Vice Chairman. Mr. Kreamer formerly served as Vice Chairman to Arno Harris of Recurrent Energy, whose term as Board Chairman expired this month. Dr. Starrs formerly served as a Director.
  • The American Solar Energy Society has announced the appointment of its new executive director, Carly Rixham. Rixham is a renewable energy professional with a diverse background in solar, biofuels, education and wastewater management. Most recently of BioVantage Resources, she was a microbiologist cultivating algae for bio-remediation of nutrients in wastewater. She received her master of science degree in ecology and evolutionary biology at the University of Colorado at Boulder where she researched microalgae for the production of biodiesel and ethanol.
  • Construction has wrapped up on an 80 module solar array at The Muny, located in St. Louis, Missouri. The Muny is the country’s oldest and largest outdoor theatre. Kirberg Company and Microgrid Solar quickly completed the project prior to the opening of the 2014 season. The solar panels will produce over 25,000 kWh in the first year. That is the equivalent of powering 80 personal computers or 599 compact fluorescent lightbulbs. This improvement continues The Muny’s commitment to sustainability and energy efficiency.
Bioenergy Bytes