Forecast for Greater GHG Reduction from Ethanol

Cindy Zimmerman

A new report forecasts global ethanol consumption will reduce greenhouse gas (GHG) emissions this year by over 106 million tons.

global-rfaThe Global Renewable Fuels Alliance (GRFA), in cooperation with (S&T)2 Consultants Inc., released their Global Green House Gas (GHG) Emissions Reduction Forecast for 2014 as the International Transport Forum Summit begins today in Germany.

The annual report shows the reduction in global GHG emissions from global ethanol production is increasing. This year’s figure reveals that 90.38 billion litres of global ethanol production and use in 2014 will reduce global GHG emissions by over 291,000 tonnes per day. Compared to 2013, this is an increase of over 7000 tonnes per day in GHG emission savings.

According to GRFA, the 106.4 million ton GHG emissions reduction is equal to over 21 million cars being removed from the world’s roads in 2014, about 58,000 per day.

“We believe International Transport Forum Summit participants should call for an increase in ethanol production and use given the significant contribution ethanol is making to reducing global GHG emissions today,” said GRFA spokesman Bliss Baker. This year’s theme for the International Transport Forum Summit is “Transport for a Changing World”.

Environment, Ethanol, Ethanol News, International, transportation

USDA Renews Biomass Crop Assistance

Cindy Zimmerman

Biomass producers and energy facilities can soon apply for assistance to turn renewable biomass materials into clean energy under the Biomass Crop Assistance Program (BCAP) reauthorized by the 2014 Farm Bill.

usda-fsaThe Farm Bill authorizes $25 million annually for BCAP, requiring between 10 and 50 percent of the total funding to be used for harvest and transportation of biomass residues. Traditional food and feed crops are ineligible for assistance. The 2014 Farm Bill also enacted several modifications for BCAP, including higher incentives for socially disadvantaged farmers and ranchers, and narrower biomass qualifications for matching payments, among other changes.

Farm Service Agency Administrator Juan Garcia says the initiative helps farmers and ranchers manage the financial risk of growing and harvesting energy biomass at commercial scale. “Investing in agricultural and forestry producers who cultivate energy biomass and supporting next-generation biofuels facilities make America more energy independent, help combat climate change and create jobs in rural America.”

“The potential to achieve transformational progress on biomass energy in rural America and generate tremendous economic opportunities is very promising,” added Garcia. “Energy crops occupy the space between production and conservation, providing opportunities for marginal land, crop diversity and more energy feedstock choices.”

The USDA Farm Service Agency (FSA), which administers BCAP, will coordinate BCAP enrollments. Information on funding availability will be published in an upcoming Federal Register notice.

biomass, Farming, feedstocks, USDA

Vestas Supplying Turbines for First Wind Project

John Davis

V112 installation, Macarthur Windfarm, AustraliaAs Maine’s First Wind project looks to move forward, a maker of the wind turbine blades will soon be delivering the technology to the New England location. Vestas Wind Systems will fulfill First Wind’s order of 148 MW for V112-3.0 MW turbines in the U.S. in the 2nd quarter of 2015 with the blades expected to be turning by the end of next year.

Vestas has received an order for 48 V112-3.0 MW turbines for the 148-MW Oakfield project in the state of Maine. The order is a call-off on the master supply agreement (MSA) announced in December 2013 for multiple U.S. projects, the potential of which totals 718 MW. With today’s order, Vestas has secured 298 MW under this MSA.

The highly popular V112-3.0 MW turbines – for which Vestas has already received almost 6 GW of orders – will be supplied for this project. The project will also include a 10-year Active Output Management (AOM) 5000 service agreement. AOM 5000 is an energy-based availability guarantee that ensures the turbines are operational when the wind is blowing. This service option includes the VestasOnline® surveillance system that remotely controls and monitors the turbines and minimizes lost production by predicting when maintenance may be required.

“We’re pleased to continue the construction of the Oakfield Wind project and look forward to installing Vestas’ V112-3.0 MW turbines there,” said First Wind CEO Paul Gaynor. “The Vestas turbines at our Bull Hill project in Maine and the Palouse project in Washington State have performed well and we expect the Oakfield project to enjoy similar success.”

This is the fourth project Vestas and First Wind have done together and their second in Maine. The other project in Maine has achieved 99 per cent availability since it was commissioned two years ago.

Wind

Transportation Biofuels to Hit Nearly $338 Bil by 2022

John Davis

biofuelsfortransBiodiesel and ethanol for vehicles is expected to hit nearly $338 billion in sales by 2022. A new report from Navigant Research expects that over the next 8 years, biofuels for road transportation will more than double, growing from $166.5 billion annually in 2014 to $337.8 billion worldwide, making up 7.5 percent of liquid fuels consumed in the sector by 2022.

“Over the last 10 years, growth in the biofuels sector has been driven by the increase in ethanol production capacity in the United States and Brazil, and in biodiesel in Europe,” says Scott Shepard, research analyst with Navigant Research. “Today, the industry is on the verge of entering a new phase of development focused on advanced and drop-in biofuels.”

Commercial-scale production of cellulosic feedstock biofuels is just getting underway, according to the report, and recent developments in drop-in biofuels propelled by the aviation industry and the U.S. Department of Defense are driving down the costs of these advanced biofuels, enabling commercial-scale drop-in biofuels production. Meanwhile, large oil-consuming nations concerned about energy security, climate change, and economic stagnation are driving global biofuels markets through a number of policy platforms, principally biofuels mandates.

The report, “Biofuels for Transportation Markets,” looks at what emerging markets will bring for biodiesel and ethanol, as well as future growth opportunities for biofuels. Vehicle sales, as well as technologies in producing the fuels, are also examined.

Biodiesel, biofuels, Ethanol, Ethanol News

How to be a Biodiesel Lobbyist: Be Honest

John Davis

nealLobbyist in government often times get a bad rap. The picture conjured up is a cigar-smoking, fat-cat with slick-backed hair, trying to grease the palms of lawmakers, lying at every opportunity possible. But in this very interesting piece from Biodiesel Magazine, the National Biodiesel Board’s (NBB) Director of State Governmental Affairs, Shelby Neal, makes the case that his job is to educate lawmakers. And with a product as good as biodiesel, he just needs to tell the truth.

I am occasionally asked, “What is the secret to being a good lobbyist?” It is a good and interesting question. The short answer is to simply “be honest and be yourself.” While I’d love to make it more complicated than that (for purposes of job security), the reality is that adherence to these five little words will get you most of the way there.

Before I delve into a longer and perhaps more satisfying answer, I would like to make an essential point, which is that the vast majority of “lobbying” is merely education by another name. We help influencers understand technical information related to biodiesel, its feedstocks, and whatever else might keep them from making informed decisions. The thrilling, vicious, high-stakes world of lobbying pretty much only exists on television. Disappointing, I know.

Real success in the field of government affairs relies on good, old-fashioned relationship-building. And just to be clear, I am not advocating for more toothy-grinned, alpha-networking. Everybody hates that. Or at least I do. No, what I am talking about is developing genuine working relationships based on trust and mutual respect. And maybe even friendships, if you’re lucky. Once someone knows you, likes you, and trusts you, they’ll lend you their time and an open mind. And this, my friends, is fertile ground for biodiesel education. Or lobbying. Whatever you want to call it.

Shelby adds that another “secret” to lobbying success is to be around a lot, be knowledgeable, be persistent but polite, and try to be a good person. In fact, you don’t have to be some kind of registered lobbyist to do that. When you get the opportunity to educate or at least set the record straight on biodiesel, do it. Tell people about how it’s good for the environment, their vehicles, and American jobs. Gee, maybe he’s right. Maybe this lobbying thing isn’t so tough… as long as we’re talking biodiesel.

Biodiesel, NBB

RFA Puts First Responders’ Safety First

John Davis

transcaer_logoThose folks who go into burning buildings and patch us up by the side of a road after a traffic accident are truly heroes in this country. Well, the folks at the people who help train those first responders how to handle going into hazardous materials (haz-mat) conditions are recognizing the people who advocate for biofuels… and try to help keep those brave men and women safe. For the third straight year, TRANSCAER, which provides that haz-mat training, has presented the Renewable Fuels Association (RFA) with its “TRANSCAER National Achievement Award” for RFA’s dedication to educating first responders across the country.

Kristy Moore, RFA’s vice president of technical services, accepted the award on behalf of the RFA at the 27th Annual AAR/BOE Hazmat Seminar in Addison, Texas, stating, “The RFA always has and always will put safety front and center. Preparation is the key to effective emergency response. The RFA works hard to ensure these selfless men and women have the most up-to-date information to handle any hazmat scenario they encounter.”

The RFA recently released an updated version of “The Training Guide to Ethanol Emergency Response.” The training guide was first developed in 2006 to give first responders, safety personnel, and hazmat teams information on how to properly respond to an ethanol-related emergency. It has been distributed to more than 10,000 first responders and was converted into an Ethanol Safety Seminar. In 2010, RFA partnered with TRANSCAER® to conduct more than 100 Ethanol Safety Seminars in 21 states. Additional safety seminars will be announced in June.

To get your copy of “The Training Guide to Ethanol Emergency Response,” just email safety@ethanolrfa.org or visit www.ethanolresponse.com.

RFA, safety

Missouri to Allow E15 at the Gas Pumps

John Davis

E15 signMissouri is the latest state to allow retailers to sell a 15 percent blend of ethanol, E15. This article from the St. Louis Post-Dispatch says a dozen other states allow, but don’t require, the higher blends.

Biofuel trade groups and state corn growing associations say E15 is just another blend of fuel that gas stations can offer price-conscious motorists. Despite auto industry groups warning of the fuel’s impact on engines, the Environmental Protection Agency has approved it for use in vehicle models 2001 and newer.

“It’s bringing in another low-cost fuel to consumers,” said Bradley Schad, director of market development with the Missouri Corn Growers Association. “It’s actually helping drive the economy here in Missouri because we produce ethanol in Missouri.”

Petroleum groups are still pushing back on the new option, trying to say that vehicle engines will be ruined by the higher blend, but with 12 other states already approving the higher blend, even with the small number of stations selling E15, wouldn’t we be hearing about all these cars stranded by the sides of roads? So far, I’m not hearing those kinds of stories.

E15, Ethanol, Ethanol News, Government

Renewable Energy Takes Hit in Farm Bill Funding

John Davis

USCapitolFunding for some rural renewable energy programs is taking a hit. Ethanol Producer Magazine reports the House Appropriations Committee cut the Biomass Crop Assistance Program (BCAP) down to just $15 million, down from last year’s levels of $25 million, and Rural Energy for America Program (REAP) for fiscal year 2015 is proposed to be funded at just $30 million, down for 2014’s $50 million in mandatory funding and $20 million in discretionary funding for FY 2015. Meanwhile, the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance program is cut to $22 million, a major drop from previous levels of $50 million in mandatory FY 2015 funding, with an additional $75 million in discretionary funding for FY 2015.

The Agriculture Energy Coalition (AgEC) has released a statement in response to the draft bill, vowing to fight the changes to the Farm Bill’s popular energy programs. “The renewable energy and energy efficiency programs in the Farm Bill help rural America create new biobased manufacturing opportunities and stable, well-paying jobs,” said Lloyd Ritter, codirect of the AgEC .”The Energy Title programs were reauthorized in the five-year Farm Bill adopted by Congress just months ago, in February 2014, and received mandatory funding to allow for program stability and business certainty. The modest investments made through that bill would pay major dividends for energy security, economic growth, and environmental gains across the United States.”

“Just today, however, the House Appropriations Committee sought to roll back the Farm Bill, by targeting the successful energy title programs for changes in mandatory spending and blocking the USDA’s ability to administer them,” Ritter continued. “The Agriculture Energy Coalition, which comprises a broad group of renewable energy, energy efficiency and agricultural groups, will continue to fight to ensure that these programs are implemented properly.”

You can read the full draft of the legislation here.

Biodiesel, biomass, Ethanol, Ethanol News, farm bill, Government, Legislation

Ethanol Groups Participate in China Trade Mission

Leah Guffey

RFANewlogoU.S. Department of Agriculture (USDA) Under Secretary for Farm and Foreign Agricultural Services Michael Scuse led a mission to promote U.S. agricultural exports in northeast China May 5-13. The mission is part of President Obama’s “Made in Rural America” export and investment initiative, designed to help rural businesses and leaders take advantage of new investment opportunities and access new customers and markets abroad.

growth-energy-logoTaking part in the mission to promote U.S. biofuels and co-product exports was Renewable Fuels Association (RFA) Director of Regulatory Affairs Kelly Davis and Jim Miller with Growth Energy.

During a press conference Tuesday to talk about the trade mission, Davis said it was her first trip to China and she was astounded by the number of cars on the roads and sees a great need for both biofuels and distillers grains for livestock feed in that country. Miller added that China provides an excellent market opportunity for the U.S. ethanol industry.

Also taking part in the trip and the press conference was Roger Johnson, president of the National Farmer’s Union. Ethanol Press Conference Opening Remarks

Agribusiness, Audio, biofuels, corn, Distillers Grains, Ethanol, Ethanol News, Exports, Government, Growth Energy, International, RFA, USDA

Hess Doubles North Dakota Gas Plant Capacity

John Davis

hessNatural gas and propane shortages of the past winter might become history with a major expansion of a North Dakota plant. Hess Corporation officials have commemorated the recently completed expansion of the Tioga Gas Plant, more than doubling the capacity of the facility.

The project is part of a more than $1.5 billion infrastructure investment made by Hess between 2012 and 2014 in North Dakota that has significantly increased production of propane, methane, butane and natural gasoline, and of ethane, a vital industrial product never before produced in the state. The expansion also brings a substantial improvement in efficiency and significantly reduces the amount of natural gas flared at Hess’s operations, from about 25 percent before the plant was shut down for the expansion project to 15 to 20 percent today.

“The Tioga Gas Plant was built in 1954, just three years after we drilled the very first oil well in the state of North Dakota,” said John Hess, Chief Executive Officer of Hess Corporation. “Today, as one of the largest oil and gas producers in the Bakken, we are committed to responsible long-term growth in North Dakota and proud to contribute to the state’s infrastructure.”

The plant is fully operational and is currently processing about 120 million standard cubic feet of gas per day (MMSCFD), with the expectation that through the combination of Hess and third-party gas it will soon process at least 250 MMSCFD with the potential to increase beyond 300 MMSCFD. Prior to expansion, the plant processed about 100 MMSCFD.

Hess officials were joined at the ceremony by a host of government officials, including North Dakota Governor Jack Dalrymple and Sen. John Hoeven.

Natural Gas, Propane