Where Your Marketing Dollars are Going

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “What’s the largest percentage of your 2014 marketing budget?”

It looks like the old faithful form of print marketing tops this week’s ZimmPoll. But what is interesting is that rest of the choices were almost evenly spread across the board, with the newer trends of social media and digital marketing right up there with broadcast and direct mail.

Our poll results:

  • Broadcast – 10%
  • Digital – 15%
  • Direct mail – 10%
  • Print – 25%
  • Social media – 15%
  • Trade show/promo items – 15%
  • Other – 10%

Our new ZimmPoll is now live and asks the question, “Has spring sprung for you yet?”

If you haven’t got a case of Spring Fever, then you must be living in Florida with Chuck and Cindy. Here in the Midwest we had an 80 degree weekend and now are back into the 30’s. I think Mother Nature is a little confused. Are you seeing any signs of spring in your neck of the woods?

Miscellaneous, ZimmPoll

Natural Gas, Solar Account for Lion’s Share of Adds

John Davis

eiaAlternative energy sources made for a good showing of new power-generating capacity added last year. This report from the U.S. Energy Information Administration (EIA) shows more than half of the utility-scale power generating capacity added last year came from natural gas-fueled plants, with solar accounting for another 22 percent – a significant increase from just 6 percent in 2012. Wind also accounted for another 8 percent of capacity added.
EIAapriladds
Natural gas capacity additions were … 6,861 MW … added in 2013, compared to 9,210 MW in 2012. The capacity additions came nearly equally from combustion turbine peaker plants, which generally run only during the highest peak-demand hours of the year, and combined-cycle plants, which provide intermediate and baseload power.

Nearly 60% of the natural gas capacity added in 2013 was located in California. The state is facing resource adequacy concerns as well as the need for more flexible generation resources to help complement more variable-output renewable resources, particularly solar, being added to the system.

Solar photovoltaic (PV) added 2,193 MW of capacity in 2013, continuing the trend of the past few years of strong growth, helped in part by falling technology costs as well as aggressive state renewable portfolio standards (RPS) and continued federal investment tax credits. Nearly 75% of the capacity added was located in California, followed by roughly 10% in Arizona.

While wind’s numbers in 2013 were only one-tenth of what it did in 2012, (1,032 MW in 2013 compared to 12,885 MW in 2012), EIA attributed this to producers rushing to take advantage of the federal production tax credit at the end of 2012.

Government, Natural Gas, Solar, Wind

Canola for Biodiesel Breaks Rail Jam, Gains Value

John Davis

canola3 Joel HornAn up-and-coming feedtsock for biodiesel has broken out of a log jam that kept it from going from the farm fields of Canada to the plants where it could be processed, and that is helping push up its value. This article from Barrons says canola has bounced back from 3 1/2-year lows and could end up gaining 20 percent in value by the middle of this summer.

A railway bottleneck in Canada, the world’s largest exporter of the oilseed, pushed canola prices in February to the lowest since June 2010, because buyers turned to other markets and bought alternative oilseeds like soy and palm oil. But last month, the Canadian government introduced tough railway rules that have helped canola start to flow more freely, traders and growers say, which is drumming up demand.

“Logistical issues in Canada have eased considerably, and this has resulted in export customers returning,” says Sterling Smith, a futures specialist at Citigroup in Chicago. That’s helped front-month prices gain 14% from the Feb. 13 low.

The article goes on to point out how canola is also being helped by higher prices for soybeans and the fact that it is strong in the cooking oil market to nearly double the expected demand for the oilseed by 2015.

Biodiesel

NASA to Study Renewable Fuels in Space

Joanna Schroeder

Renewable Fuels are getting one stop closer to heading out to space. NASA has signed agreements with the German Aerospace Center (DLR) and the National Research Council of Canada (NRC) to conduct a series of joint flight tests to study the atmospheric effects of emissions from jet engines burning alternative fuels. The Alternative Fuel Effects on Contrails and Cruise Emissions (ACCESS II) flights are set to begin May 7, 2014 and will be flown from NASA’s Armstrong Flight Research Center in Edwards, California.

“Partnering with our German and Canadian colleagues allows us to combine our expertise and resources as we work together to solve the challenges common to the global aviation community such as understanding emission characteristics from the use of alternative fuels which presents a great potent629321main_ED07-0256-13cial for significant reductions in harmful emissions,” said Jaiwon Shin, NASA’s associate administrator for aeronautics research.

NASA’s DC-8 and HU-25C Guardian, DLR’s Falcon 20-E5, and NRC’s CT-133 research aircraft will conduct flight tests in which the DC-8’s engines will burn a mix of different fuel blends, while the Falcon and CT-133 measure emissions and observe contrail formation.

“Cooperation between DLR and NASA is based on a strong mutual appreciation of our research work,” said Rolf Henke, the DLR Executive Board member responsible for aeronautics research. “We are very pleased to be performing joint test flights for the first time, and thus set an example by addressing pressing research questions in global aviation together.”

ACCESS II is the latest in a series of ground and flight tests begun in 2009 to study emissions and contrail formation from new blends of aviation fuels that include biofuel from renewable sources. ACCESS-I testing, conducted in 2013, indicated the biofuel blends tested may substantially reduce emissions of black carbon, sulfates, and organics. ACCESS II will gather additional data, with an emphasis on studying contrail formation.

Miscellaneous

RFA: CARB’s ILUC Analysis Out of Date, Out of Step

John Davis

rfa-logo-09A biofuels advocate is taking exception with one state’s evaluation of indirect land use change associated with the green fuels. The Renewable Fuels Association (RFA) says the California Air Resources Board’s (CARB) draft indirect land use change (ILUC) analysis is not in step with current ILUC science.

Geoff Cooper, RFA’s senior vice president, notes in his submission that RFA is greatly concerned by many aspects of the draft.

Cooper writes, “….several of the assumptions and methodological approaches chosen for CARB’s draft analysis run counter to the recommendations of the Expert Work Group (EWG). In particular, the values selected by CARB for key GTAP elasticities are in conflict with values recommended by EWG and well-known agricultural economists. More generally, CARB’s draft analysis lacks sufficient justification for certain judgment calls made by staff with regard to important model parameters.

“… the results of CARB’s draft analysis are in conflict with the results of recent independent ILUC studies. As described in a recent letter to CARB Chair Mary Nichols from 14 scientists and researchers (including CARB-appointed Expert Work Group members), the corn ethanol ILUC results from CARB’s draft analysis are significantly higher than estimates from recent peer-reviewed scientific analyses…. We believe CARB should explain and justify the divergence of its draft results with estimates from other recent studies.”

RFA addresses key modeling parameters in CARB’s analysis, such as crop yield elasticities and emissions factors, which RFA believes are not in line with what current ILUC science says. In addition, the group says CARB needs to correct in its draft price yield elasticity, what RFA considers to be the single more important factor in the analysis. You can read RFA’s full comment letter here.

Ethanol, Ethanol News, Government, RFA

Ethanol Industry Testifies About Railroad Issues

Joanna Schroeder

The ethanol industry testified during the Surface Transportation Board hearing to discuss issues related to insufficient rail service that the ethanol industry says has resulted in ethanol prices spikes and ethanol plants having to halt production.

ethanol rail car at Patriot EthanolChris Bliley, director of regulatory affairs for Growth Energy said in his testimony, “Make no mistake, these price spikes have not been caused by a lack of ethanol production or supply, but purely because of an inability to get timely rail transportation. In fact, many plants have reduced or even halted production because their storage capacity is fully utilized. There have been numerous examples of our producers having to wait and wait on trains to deliver their product.”

He continued, “On top of the poor and declining rail service, our industry has seen increased tariff rates on certain routes effective April 1. Not only did one railroad give our producers very little notice of the increases, but I dare say, few, if any industries would have the audacity or ability to increase shipping rates while their service has been so poor.

“The bottom line is that the railroad industry has failed in its sole responsibility to transport goods in a timely and effective manner. This failure in service has had a ripple effect on American consumers by increasing the cost of goods and services, and has directly impacted our industry by causing a de facto shut down in production as there is simply no more space to store product,” Bliley added.

Renewable Fuels Association (RFA) general counsel Ed Hubbard, in his testimony said, “Due to an uncharacteristic winter, rail shipments of all commodities have been significantly delayed across the country. For ethanol, the congestion has led to a dramatic delay in ethanol shipments to fuel terminals, and caused shutdowns of operations at ethanol plants because they can’t continue to store product while awaiting rail carriers to move their product.”Read More

biofuels, Ethanol, Growth Energy, RFA

Community Solar Arrives in Massachusetts

Joanna Schroeder

Community Solar has arrived in the Commonwealth of Massachusetts. Clean Energy Collective (CEC) has selected RGS Energy as the general contractor for the solar facilities. RSG Energy will provide engineering, procurement and construction (EPC) services for two large solar arrays of nearly 1 megawatt (MW) each owned and operated by CEC.

One community solar garden will be located in Hadley, Massachusetts and will serve customers of Western Massachusetts Electric Company (WMECo). The second community Clean Energy Collective logogarden will be deployed in Rehoboth, Massachusetts to serve National Grid customers. Construction has already begun on the two sites, with interconnection planned for the end of June.

“As the first community-owned solar model in Massachusetts, these projects represent a new enabler for increased solar adoption, where owners of individual solar panels can reduce their home or business electric utility bill with solar power, while at the same time reducing their carbon footprint in a meaningful way,” said Kam Mofid, CEO of RGS Energy.

Both facilities will employ 300-watt panels, inverters by Advanced Energy, racking from RBI Solar, and monitoring systems provided by Ambient Weather.

CEC President Paul Spencer stressed the value RGS Energy brings to the solar projects. “RGS Energy is the ideal partner for us in implementing these facilities. With their outstanding systems engineering and deployment capabilities and their national footprint, they can ensure our individual project specifications are delivered on time and to the highest standards.”

Renewable Energy, Solar

CASE Applauds Bloomberg for Defending Solar Industry

Joanna Schroeder

Former New York City Mayor Michael Bloomberg called U.S. tariffs on solar panels harmful to the American public during his comments at Bloomberg New Energy Finance Summit held in New York. In his remarks, Bloomberg called tariffs on solar panels and solar cells imported from China protectionist policies, pointing out that, “the Chinese have done us this enormous favor of selling us solar panels below the price that we can make them.”

CASE-logo“I applaud Michael Bloomberg for speaking out against U.S. tariffs on solar products and for exposing the misguided protectionism that is currently resulting in higher prices of solar energy to consumers,” said Coalition for Affordable Solar Energy President Jigar Shah. “The overwhelming majority of U.S. solar companies have embraced the global nature of our highly-specialized industry and are successfully leveraging cost savings to create over 140,000 American jobs – most of which are in installation on American rooftops. Higher tariffs only mean higher prices, which ultimately leave U.S. solar companies unable to compete on cost, and deny the American public access to affordable solar energy.

Shah continued, “This topic is extremely relevant since we‘re in the midst of a second trade case, calling for additional tariffs on imported solar panels and cells from China and Taiwan. Continued uncertainty and rounds of legal cases are not the paths to sustainable growth for the U.S. solar industry. As Sen. Ron Wyden (D-OR) also noted during his remarks at the Summit on Monday, ‘a lack of predictability can hurt our nation’s clean energy investment.’ I agree with Senator Wyden, and note that the damage caused by uncertain solar trade barriers creates the same uncertainty that changing government programs and tax policies have on the broader renewable energy industry. Now is the time to negotiate an equitable solution to the solar trade petitions that will bring confidence back to the market and lay the groundwork for the U.S. solar industry’s continued success.”

Renewable Energy, Solar

Minnesota Biodiesel Mandate: I’m Not Dead Yet!

John Davis

mdalogo1Minnesota’s biodiesel mandate, looking like it could take a hit, has risen up like a Monty Python character and shouted back, “I’m NOT dead yet!” Recently, we told you how the mandate was facing an uncertain future, as the date to finally move to B10, a 10 percent blend of the green fuel, is coming this year. But that put it dangerously close to another milestone of moving to B20 next year. But this article from Biodiesel Magazine says a compromise piece of legislation looks like it could preserve the mandate… just at a slower pace.

State Representative Clark Johnson is an ardent supporter of the biodiesel industry. Last month he introduced a bill for the agriculture department and the biodiesel industry seeking to modify future requirements regarding exceptions, what months higher blends should be required, and the date on which the state will jump from B10 to B20. His bill, House File 3203, missed a deadline to move forward, but Charlie Poster, assistant commissioner at the Minnesota Department of Agriculture, says the agency has made concessions to opponents of the increased biodiesel mandate by incorporating HF 3203’s language into an agency “unsession” bill (SF 2618) that is moving forward.

“The bill that’s signed into law probably won’t be HF 3203, but it will be that language,” Poster tells Biodiesel Magazine. “There was a movement by the Alliance of Automobile Manufacturers and the Minnesota Automobile Dealers Association (MADA),” Poster says. “They had some concerns about biodiesel, and they wanted to see the biodiesel mandate gutted—and I don’t think that’s too strong of a word. They were proposing some language that, in all but name, would remove our biodiesel standard. And the Department of Agriculture’s position is that biodiesel has worked really well in our state. It’s lowered the price of diesel fuel. It’s added to farmers’ incomes. It’s doing exactly what we want it to do. It’s been a great success.”

The article goes on to say that in order to appease opponents of biodiesel, the agency made four concessions: 1. Move the B20 date to 2018; 2. Shorten by one month the “summer” months part of the mandate, making it April-September; 3. Make permanent some exceptions for nuclear power plants, railroads, mining, logging and the Coast Guard; and 4. Extend the biodiesel blending waiver for No. 1 fuel to May 1, 2020.

Biodiesel, Government, Legislation

Clean Energy Bill Hits House of Reps

Joanna Schroeder

Clean Energy Victory Bonds WillSeveral groups have been promoting clean energy victory bonds, a throwback from World War II. This week the concept gained support as the House of Representatives as the Clean Energy Victory Bonds Act of 2014. The Treasury bonds starting as low as $25 will allow Americans to invest in the country’s clean energy future.

The bill was introduced by U.S. Reps. Zoe Lofgren (D-Cali.) and Doris Matsui (D-Cali.) and includes 14 co-sponsors and is endorsed by Green America and the American Sustainable Business Council, which together represent half a million consumers, companies, organizations, and investors.

Todd Larsen, corporate responsibility division director for Green America, said, “This bond is modeled after the successful WW II Victory Bond which millions of Americans purchased. The Clean Energy Victory Bond will provide individual and institutional investors with the opportunity to invest in clean energy sectors such as solar, wind, second generation biofuels, electric vehicles, and residential and commercial energy efficiency programs. There are currently few investment opportunities for the average investor interested in supporting the shift to a clean energy economy so this bond fills a need for both investors and industry.”

Clean Energy Victory Bonds logoAccording to Green America and the American Sustainable Business Council, Clean Energy Victory Bonds will create the following major benefits:

  • Leverage $50 billion investment to provide up to $150 billion in public and private financing to fund the production of innovative energy technologies, at a time when the U.S. is falling behind other countries in clean energy manufacture and installation.
  • Help create at least one million competitively-paying jobs in the U.S.
  • Support America’s clean energy sector, helping to ensure that the U.S. remains a world leader in this increasingly crucial and competitive industry.
  • Reduce U.S. dependence on foreign sources of energy, enhance national security, and limit price increases and fluctuations.
  • Provide a secure, competitive, government-backed investment vehicle for average Americans and investment institutions alike seeking a safe place for their money.
  • Offer flexible redemption options at interest rates superior to most bank accounts.
  • Help all Americans to invest in the future of their country and benefit from their investments.
  • Promote a cleaner environment through the financing of clean energy technologies.
  • Protect the health and safety of Americans by reducing local air and water pollution throughout the country.

“From a business perspective, the Clean Energy Victory Bond makes great sense,” said Richard Eidlin, co-founder & policy director, American Sustainable Business Council. “The clean energy industry has not had the steady flow of financial support that investors and business need to plan effectively, resulting in investors often deciding to place their investments overseas rather than in the U.S.”

Tax incentives for renewable energy come and go, often without predictability, leaving investors and industry scrambling. The Clean Energy Victory Bond would extend vital tax credits for a decade, giving emerging industries the support they need to develop and become increasing competitive.

Alternative energy, Clean Energy, Electricity, Legislation