Wind, Solar Solution for New EPA Power Plant Rules

John Davis

epa-logoThe U.S. Environmental Protection Agency is expected to announce later today new rules to reduce carbon pollution from coal-fired power plants by 30 percent by 2030, and a couple of renewable energy sources could help states comply. This article from the Boston Globe says solar and wind energy might be part of the compliance mix.

Under the rule, states will be given a menu of policy options to achieve the pollution cuts. Rather than immediately shut down coal plants, states could reduce emissions by making changes across their electricity systems — by installing new wind and solar generation or energy-efficiency technology, and by starting or joining state and regional “cap and trade” programs, in which states agree to cap carbon pollution and buy and sell permits to pollute.

And this article from the Houston Chronicle says power plants in Texas could end up in good shape because they use clean-burning natural gas.

[T]he state would have some 110 fully operating power plants, mostly fueled by natural gas, [Al Armendariz, a former EPA official who now leads the Sierra Club’s anti-coal campaign in Arkansas, Mississippi and Texas] said. “That’s the good news. The problem can be solved at a small number of plants. This will not affect nuclear plants or natural gas plants.”

Texas officials said the low prices for natural gas have led to the seasonal mothballing of coal-fired plants and reduced their output overall. The shift, they said, will lead to fewer emissions of greenhouse gases.

You can bet more renewable energy sources will be chiming in when the rule is announced later today.

Natural Gas, Solar, Wind

Aventine Re-Opens Ethanol Plant Using Sugar

John Davis

aventine1A Nebraska ethanol plant is back up and running after being idled for two years. But this article from the Lincoln Journal Star says the biggest surprise is the fact that Aventine Renewable Energy Inc. in Aurora is making the green fuel from sugar, not the usual corn feedstock.

The company is using sugar because it can. It’s even simpler to make ethanol from sugar than it is from corn, but it’s only temporary, according to Aventine. The federal government makes surplus sugar available to ethanol producers to use as feedstock.

Aventine’s operations at the Aurora West plant have been complicated and delayed by the company’s legal disputes with the Aurora Cooperative over their land deal, rail access and other agreements. The ethanol producer, based in Pekin, Ill., filed for bankruptcy five years ago, and that delayed the plant’s construction, causing conflict with the co-op.

The co-op also had an agreement to supply the plant with feedstock. Both sides contend the other breached that agreement. The plant has a capacity to produce 113 million gallons per year.

Nebraska Ethanol Board officials believe this might be one of the first times something other than corn has been used to make ethanol in the state. The re-opening also brings consistent production back to this Aventine plant, and it opens the door to another nearby, smaller Aventine ethanol plant to re-opening after being idled for the past two years.

Ethanol, Ethanol News

Rural Wind Energy Development Act Introduced

John Davis

capitol-buildingA bill to help rural areas get more power from the wind has been introduced. Representatives Earl Blumenauer (OR-03) and Tom Cole (OK-04) say their Rural Wind Energy Development Act will provide an investment tax credit to ranchers, farmers, and small businesses to offset the up-front costs of owning a distributed wind turbine.

Small wind turbines (generating up to 20 megawatts of clean energy) allow farmers, ranchers, and other consumers to cut their energy bills and, at times, sell power back into the grid. They also allow thousands of businesses—from “mom and pop” stores, to retailers, to ranches, and to breweries—to reduce their energy load, to help clean the environment, and to save money. The Department of Energy’s national laboratories estimate that community wind generates a strong economic multiplier for local communities, helping rural areas rebound from challenging economic times.

“Community wind energy not only creates American-produced electricity, but American jobs as well,” said Blumenauer. “Approximately 90% of distributed wind turbines sold in the U.S. are made here, according to domestic manufacturing content, creating non-exportable, family wage jobs.”

“I am pleased to once again work with my friend and colleague in furthering the success of the same credit we worked to create in 2008,” said Cole. “Not only does the credit play an important role in encouraging and developing an all-of-the-above energy approach for our nation, but it also ensures that America continues to be a leader in innovation. By modestly increasing this credit, we can continue to encourage economic development, especially in our rural communities.”

The bill is touted as taking away federal restrictions that work well for large-scale wind projects, but cause issues for the smaller producers.

Government, Legislation, Wind

DF Cast: Senators, Industry Push EPA on Biofuels

John Davis

Time is ticking down for the Environmental Protection Agency to make a decision on how much renewable fuel will be mixed into the nation’s fuel supply, and ethanol and biodiesel groups are pressing for a change to what’s being proposed.

On the biodiesel side, nearly 120 companies have just sent the White House a letter trying to reverse the proposed 1.28 billion gallons of biodiesel to be blended… a move in the wrong direction from the 1.8 billion gallons produced just last year. The letter adds to a chorus of dissent on the agency’s proposal coming from areas such as the Midwest where renewable fuels are made and from usually staunch Obama Administration backers on Capitol Hill.

In this edition of the Domestic Fuel Cast, we hear from U.S. Senators Heidi Heitkamp (D-ND), Dick Durbin (D-IL), Amy Klobuchar (D-MN), Al Franken (D-MN), Joe Donnelly (D-IN), and Maria Cantwell (D-WA), as they express their frustration with the EPA proposal… and what can be done to fix this.

Domestic Fuel Cast - Sens., Industry Push EPA on Biofuels

You can also subscribe to the DomesticFuel Cast here.

Audio, Biodiesel, Domestic Fuel Cast, EPA, Ethanol, Ethanol News, RFS

Biodiesel Maker REG Making $125 Mil Public Offering

John Davis

reg-logoBiodiesel giant Renewable Energy Group, Inc. (REG) intends to make a $125 million public offering. This company news release says proceeds will be used to help pay for its stake in a recently acquired renewable diesel plant in Louisiana.

REG intends to use approximately $100 million of the net proceeds from this offering to replace the letter of credit that guarantees the Gulf Opportunity Zone bonds issued in connection with the Dynamic Fuels, LLC biorefinery in Geismar, Louisiana or to redeem those bonds. REG has previously announced its agreements to acquire all of the equity interests in Dynamic Fuels from Syntroleum Corporation and Tyson Foods, Inc. REG also intends to use a portion of the net proceeds from this offering to fund the cost of the capped call transactions described below. REG intends to use the remaining net proceeds from this offering for working capital and other general corporate purposes.

The offering will be in the form of convertible senior notes due in 2019. Prior to December 15, 2018, the notes will be convertible only during certain periods and subject to certain circumstances, into cash, shares of REG common stock, or a combination of cash and shares of REG common stock, at REG’s election.

Biodiesel, REG

Biodiesel Industry Wants Obama to Stick with Support

John Davis

nbb-advancedNearly 120 biodiesel companies and affiliated businesses are calling on President Obama to stand behind his past support of their industry. This news release from the National Biodiesel Board says the group sent the White House a letter outlining the extensive damage that would result from the Environmental Protection Agency’s (EPA) current Renewable Fuel Standard (RFS) proposal, which would set a biodiesel standard of 1.28 billion gallons – far below actual 2013 production of nearly 1.8 billion gallons.

“As entrepreneurs and business leaders representing thousands of employees, we have followed signals from this Administration and invested billions of dollars in developing a U.S. biodiesel industry that has successfully delivered more than 5 billion gallons of EPA-designated Advanced Biofuel under the RFS since you took office,” the letter states. “We are extremely concerned that you could be retreating on your previously unwavering support for biodiesel in a way that would have severe consequences for the industry’s future.”

The companies and other organizations signing the letter represent thousands of employees in states across the country, from California to Minnesota to Rhode Island. They specifically referenced legislation introduced by then-Sen. Obama in 2006 (“The American Fuels Act”) that called for an ambitious standard of 2 billion gallons of alternative diesel fuels by 2015.

“Thanks to American innovation, the hard work of our employees, and strong, consistent federal policy under the RFS, the biodiesel industry almost reached that goal last year by producing nearly 1.8 billion gallons under the RFS. With stable policy, it is very likely that the industry will – a mere decade later – indeed reach your stated goal of 2 billion gallons by 2015,” the letter states. “This is a success story of which you and your Administration should be proud: A clean, renewable energy industry meeting a challenging goal that you envisioned 10 years ago. Yet with this EPA proposal, this Administration is retreating. We urge you not to.”

This latest letter adds to the growing chorus of dissatisfaction with the Administration’s stance of lowering RFS amounts, as shown by a group of Democratic senators, who are normally big proponents of Obama, recently blasting him for the EPA’s proposal.

Biodiesel, EPA, NBB, RFS

Farmers Favorite Features of MyNewHolland.com

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “What features of MyNewHolland.com do you like?”

It’s been just over a month since the launch of New Holland North America’s MyNewHolland.com, an online destination for all things New Holland and open to all farmers. The ability to keep up with equipment inventory seems to be a highlight for those who have taken advantage of this opportunity. Whether you own New Holland equipment, used to own or would like to own, or who just want to join the farming conversation, it’s free and easy to sign up. Over 500 people from all over North America have already joined for a variety of reasons, including the spotlight discussion on growing crops for biofuels.

Our poll results:

  • My Equipment – my equip inventory – 18%
  • Precision Land Management – 6%
  • Configurator – configure your equipment – 6%
  • Calendar – 6%
  • Spotlight Discussion – 12%
  • Dealer locator – 12%
  • Links to other New Holland info – 6%
  • I have created a login – 6%
  • I have not created a login – 23%
  • Other – 5%

Our new ZimmPoll is now live and asks the question, “Can organic & GMO crops co-exist?”

A recent ban on the cultivation of genetically engineered crops has passed in two Oregon counties. This is one of many issues that puts farmer vs. farmer. Should it be the landowner’s choice or should these decisions be made at the ballot box? In this week’s ZimmPoll we want to know if you think organic and GMO crops can co-exist?

ZimmPoll

House Members Claim Majority Want RFS Changed

Cindy Zimmerman

A coalition of U.S. House of Representatives member opposed to the Renewable Fuel Standard (RFS) claim that a bipartisan majority of members “have expressed concerns regarding the current ethanol mandate.”

USCapitol22In a press release, Reps. Bob Goodlatte (R-Va.), Jim Costa (D-Calif.), Steve Womack (R-Ark.), and Peter Welch (D-Vt.) announced that 218 Members of the House agree “there is a serious problem with the RFS.”

“It is telling that 218 members from both sides of the aisle, representing communities across the nation, have spoken out against the current RFS and called for reform. The flawed ethanol mandate has a real impact on the American economy, and legislation in the House to reform the RFS has drawn the support of more the 50 organizations representing a diverse range of issues. There is clearly a growing appetite to reform the ethanol mandate, and it is time for the EPA to address lawmakers’ concerns. Any day now, the EPA is expected to announce the final rule governing 2014 RFS levels. As the final rule is written, we urge Administrator McCarthy to carefully consider the concerns of a majority of House lawmakers in any decision and take action to reduce the burden of the RFS for 2014.”

A spokesperson for Goodlatte’s office says the 218 members of Congress referenced in the release is “a culmination of Members who have either cosponsored H.R. 1462 or H.R. 1461 or signed onto one of the many letters sent on the topic.” The office did not provide a list of members they say have “recognized there is a problem with the current RFS.”

Ethanol, Ethanol News, Government, RFS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFSanta Monica’s Shore Hotel is installing power saving technology by Green Charge Networks, which will save the Hotel an estimated 50% in demand charges annually. GreenStationTM, an intelligent energy storage system, combines historical energy use patterns with real-time weather data to predict demand and store and discharge energy accordingly. The system’s installation will further showcase the Hotel’s commitment to sustainability and propel it towards the prestigious LEED Platinum certification.
  • Gevo, Inc. has announced that it is selling para-xylene (PX) derived from its renewable isobutanol to Toray, one of the world’s leading producers of fibers, plastics, films, and chemicals. PX is a primary raw material for the manufacture of bio-polyester (PET). PET has the largest global market share of all synthetic fibers and is also used in plastic bottles, films, and as a polymer for many other applications. The ability to produce PX as a building block for PET creates large market opportunities for Gevo and partners who desire bio-based plastic bottles, bio-based polyester fiber for apparel and textiles, and for many other products.
  • Hannon Armstrong Sustainable Infrastructure Capital, Inc., a leading sustainable infrastructure investor, has announced the acquisition of a $107 million portfolio of land and payments from land leases underlying wind and solar projects. HASI also entered into an expansion of its existing credit facility, which provides for an additional $200 million of capacity and increased flexibility in terms.
  • India has set a target of achieving overall renewable energy installed capacity of 41,400 MW by 2017 and 72,400 MW by 2022. As per NOVONOUS estimates, this creates an US $83.35 billion opportunity in the renewable energy market in India until 2022. India has the world’s fifth-largest electricity generation capacity which currently stands at 243 GW. Renewable energy including large hydro constitutes for only 28.8% of overall installed capacity in India. The total renewable energy potential from various sources in India is 2,49,188 MW. India till March 31, 2014 has been able to achieve only 12.95% of its renewable energy potential. The untapped market potential for overall renewable energy in India is 216918.39 MW which shows huge growth potential for renewable energy in India.
Bioenergy Bytes

State Incentives, Grants Help Open VA Ethanol Plant

John Davis

virginiaflagSome seed money and a few years of production incentives offered by the state are finally helping open an ethanol plant sitting dormant since its building completion in 2010. This article from Petersburg, Va.’s Progress-Index says the Vireol Bio Energy LLC plant is up and running, and most importantly, selling ethanol.

The company will receive subsidies to operate from the commonwealth, because the Biofuels Production Incentive Grant was approved by the General Assembly this session. The bill was supported by Delegate Riley Ingram, R-Hopewell, and Delegate Rosalyn Dance, D-Petersburg.

Gov. Terry McAuliffe made the announcement that he signed the bill in early April, a couple of weeks after Hopewell City Council agreed to match a $250,000 grant from the state. The money will be disbursed in equal portions over two years.

Because of the grant, Vireol can receive $0.04 cents for every gallon of ethanol they produce and sell this year. The amount decreases by one cent in 2015, then to $0.025 in 2016. The subsidies will end in June 2017 and are capped at $1.5 million each fiscal year. Subsidies will not apply to fuel made from corn in 2016 or 2017.

The plant is expected to produce 170 million gallons of ethanol over the next three years, as well as buying more than $100 million worth of grain from local farmers.

Ethanol, Ethanol News, Government