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

RFA Calls EWG Report Flawed

Cindy Zimmerman

RFANewlogoThe Renewable Fuels Association is disputing findings of an Environmental Working Group report released today entitled, “Ethanol’s Broken Promise: Using Less Corn Ethanol Reduces Greenhouse Gas Emissions.”

RFA president and CEO Bob Dinneen says the report relies on “overblown and disputed assumptions of land use change, making ethanol from corn appear to be worse than gasoline,” which he calls “simply preposterous particularly when contrasted with the ever-rising greenhouse gas (GHG) emissions from tar sands and fracking.”

“The Department of Energy’s GREET model clearly shows that corn ethanol reduces GHG emissions by 34 percent compared to gasoline, including hypothetical land use change emissions,” says Dinneen in a statement. “Additionally, a Life Cycle Associates study found that corn ethanol reduces GHG emissions by 37–40 percent when compared to tight oil from fracking and tar sands.”

The EWG report claims “that the federal corn ethanol mandate has driven up food prices, strained agricultural markets, increased competition for arable land and promoted conversion of uncultivated land to grow crops.” Stay tuned for more reaction from the ethanol industry on this report.

Ethanol, Ethanol News, RFA, RFS

Voluntary Quality Control Pays Off for Biodiesel

John Davis

BQ9000labA voluntary quality control program is paying dividends to the biodiesel industry as it has helped maintain high standards for the green fuel, and in turn, kept demand up for it. This article from Biodiesel Magazine says the BQ-9000 programs help those selling and using biodiesel.

“Implementing BQ-9000 and getting accredited is a lot of work, but we find following BQ-9000 structure and rules really helps manage and run Thumb BioEnergy,” said Leon Jackson of Thumb BioEnergy, a small biodiesel producer in Sandusky, Mich. “It has really helped us maximize production and optimize the quality of our fuel. I would highly recommend becoming a BQ-9000-certified producer.”

The BQ-9000 quality assurance programs are designed to help ensure that the biodiesel fuel produced, blended, and distributed throughout the U.S. meets and is maintained against the appropriate ASTM specifications. There are currently three voluntary programs developed for producers, fuel marketers and independent laboratories. While these are not product quality certification programs, they ensure the individual companies follow the necessary policies and procedures to maintain the fuel throughout the process by a checklist of independently audited procedures.

The article also points out that nearly 90 percent of all biodiesel produced last year came from BQ-9000-certified producers, ensuring consumers and retailers have a quality product.

Biodiesel

Microbes Future for Biodiesel, Hydrogen Cells

John Davis

Research at the Massachusetts Institute of Technology (MIT) looks to turn microbes into the next big thing for biodiesel and hydrogen fuel cells. This story from MIT says scientists at the school are looking to capture energy that might be flushed away in wastewater.

buie1“Even if you could get only a fraction of that back, you could offset the amount of energy it takes to process the wastewater, and potentially sell some back to grid,” says Cullen Buie, who heads up MIT’s Laboratory for Energy and Microsystems Innovation (LEMI). “We’re working on a way to use microbial fuel cells to harvest some of the energy that is currently being flushed down the toilet.”

Buie’s work on microbial fuel cells is just one effort of many at LEMI, where projects draw upon fields including microfluidics, electrokinetics, electrochemistry, and microscale surface engineering. In addition to microbial fuel cells, potential applications include biodiesel harvesting, cell sorting for genetic research, ship-hull protection, and perhaps Buie’s biggest breakthrough to date: a low-cost, hydrogen bromine flow battery that doesn’t require a membrane.

Buie founded LEMI when he arrived at MIT in 2010. “The lab encompasses all the things that interest me, including alternative energy,” says Buie, an assistant professor of mechanical engineering. “A lot of our applications are dependent on microscale manipulation or principles of microfluidics. We also look at electric fields in fluid flow in order to discriminate, or sort cells, based on physical properties.”

The idea behind the process is that microbial fuel cells use bacteria, instead of precious metals, as catalysts in chemical reactions that produce energy. In addition, the technology can be applied to harvesting algae for the oil used to make biodiesel.

Biodiesel, Hydrogen

Brazil Upping Biodiesel Blend Requirement

John Davis

brazilMore biodiesel will be blended into fuel used in Brazil. This story from Reuters says the South American country will up its biodiesel mandate to 6 percent in July and to 7 percent in November, a rise from the current 5 percent biodiesel blend with diesel.

“The increase in the biodiesel blend will allow Brazil to substitute the import of 1.2 billion liters (264 million U.S. gallons) of diesel a year,” [Mines and Energy Minister Edison] Lobao said at an event in Brasilia.

Brazil will also set up a band for the minimum biodiesel requirement to be added to diesel that will range between 5 and 7 percent and vary according to economic conditions, like a similar band for blending ethanol into gasoline, the biofuels coordinator at the Agricultural Development Ministry, André Machado, told Reuters.

Changing the blend requirement for biodiesel has been on the table for years but faced resistance from the Finance Ministry, which has struggled to keep inflation within the central bank’s target range ahead of the presidential election in October.

Opponents of the move tried to raise fears that it would raise commodity soy prices, but recent studies showed that impact would be negligible. The larger blend requirement could raise domestic consumption of biodiesel by about 300 million gallons annually.

Biodiesel, International

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFElevance Renewable Sciences, Inc. has announced that Steven Mills, former Chief Financial Officer at Amyris, Inc., will join Elevance’s board of directors. Mills has extensive experience in the fields of accounting, corporate finance, strategic planning, and mergers and acquisitions.
  • American Ethanol will host members of the Armed Forces from Dover Air Force Base (AFB) participating in the NASCAR Troops to the Track Presented by Bank of America™ during the Fed Ex 400 at Dover International Speedway. American Ethanol is a year-long supporter of the Armed Forces Foundation. Dover AFB is the home of the Mortuary Affairs division of the Armed Forces, the division responsible for the care and final rights of fallen service members who were killed while serving our nation.
  • The National Algae Association is announcing a Call for Presentations for the next Algae Production Workshop to be held in Texas in July 2014. We will be focusing on five (5) areas: HP for astaxanthin, feeds, food, CO2 sequestration and wastewater. Please submit your presentation by June 15, 2014. Workshops are open and collaborative forums to learn and share information in the different methods and commercial processes involved in the algae production industry.
  • Ellomay Capital Ltd., an emerging operator in the renewable energy and energy infrastructure sector, has announced its entry into a binding Letter of Intent for the purchase of 3 photovoltaic solar plants with approximately 5.6MWp, with nominal output of approximately 5.2MWn). The PV plants are ground mounted fixed technology plants and are located in Murcia, Spain. The PV Plants are already constructed and operating and were connected to the Spanish national grid in 2011. According to the Letter of Intent, the PV Plants and all associated assets and rights shall be purchased by Ellomay for an aggregate purchase price of Euro 9.5 million or approximately US $13 million, subject to certain purchase price adjustments..
    • Bioenergy Bytes