Extenders Package Picks up Wind

Cindy Zimmerman

After quite a bit of back and forth, the Senate Finance Committee finally included wind energy in the renewable energy Production Tax Credit (PTC) and Investment Tax Credit (ITC) tax extenders package out of committee this week.

AWEA1“We’re grateful to all the supporters of renewable energy on the Senate Finance Committee,” said Tom Kiernan, CEO of the American Wind Energy Association. “This provides a critical signal for our industry, which has created up to 85,000 jobs and has a bright future ahead, as we grow from 4 percent of the U.S. power grid to an expected 20 percent and beyond, so long as we have a predictable business climate.”

The PTC and the alternate Investment Tax Credit were added overnight to a modified “Chairman’s mark,” after an earlier draft released Monday left them and several other provisions for further negotiation.

They prevailed on a critical 18-6 vote during the committee markup late Thursday morning, on a motion by Sen. Pat Toomey (R-PA) to strip them out. Five Republicans joined the committee’s Democrats in voting down that amendment: Sens. Chuck Grassley (R-IA), John Thune (R-SD), Rob Portman (R-OH), Mike Crapo (R-ID), and John Cornyn (R-TX).

Government, Wind

ACE: Blend Wall Cost Reporting Wrong

Joanna Schroeder

Several recent media reports have reported that the “blend wall” cost refiners nearly $1.35 billion last year. The blend wall is the amount of ethanol that can be blended into the fuel supply. Today is this considered “E10” and for the most part this has been achieved. The next step to hurdle the so called blend wall is to either increase the amount of ethanol Screen Shot 2014-04-04 at 10.59.49 AMblended into the fuel supply, such as E15 which is a voluntary blend (retailers can choose to blend E15 and consumers can choose to purchase E15) or to promote mid-level or higher blends of ethanol such as E85, which can be used in flex-fuel vehicles.

In response to these reports, Ron Lamberty, senior vice president for the American Coalition for Ethanol (ACE) called them “incomplete and misleading”. A recent Reuters article said that was the amount nine companies paid for Renewable Identification Number (RINs), which are credits refiners provide to EPA to prove they bought the amount of renewable fuels required by law. RINs are free to refiners who blend biofuels, while refiners who choose not to blend biofuels can buy RINs from companies that blend more than the law requires.

“Those refiners made a business decision to purchase credits instead of ethanol. Reports aren’t honest if they fail to point out that those nine refiners paid $1.35 billion dollars to other refiners for those companies’ excess RINs.” said Lamberty. “The “blend wall” provided $1.35 billion dollars of income to some refiners, which reduced their cost of fuel.”

Lamberty said ACE would like to see more RINs generated by retailers, since they generally use the additional funds to reduce prices at the pumps. “Unfortunately, at the same time oil companies are complaining about RINs and the “blend wall,” they enforce policies that won’t allow their branded marketers to sell E15 and higher ethanol blends,” Lamberty said. “Station owners who offer E15, E85, and other blends generally sell about 20% ethanol overall, making more RINs available. And when they sell RINs, they pass most of the value of those RINs on to customers in the form of lower pump prices.”

ACE, biofuels, Ethanol, RINS

Advanced Biofuels in Tax Extenders Bill

Cindy Zimmerman

aeclogoThe cellulosic biofuels industry was very pleased to see the Senate Finance Committee markup of a package of tax extenders that includes the Producer Tax Credit (PTC) and the special depreciation allowance for advanced biofuels.

“The cellulosic biofuel industry is just breaking through at commercial scale. Today’s markup sends a clear signal to the marketplace that Congress is making progress on extending its support for one of the most innovative, low carbon industries in the world,” said Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC). “It will be very important to move this package along quickly, as executives in our industry are weighing the pros and cons of developing the next wave of projects here or abroad.”

Advanced-Biofuels-Association-Logo“We applaud the Finance Committee and Chairman Wyden for supporting the advanced biofuels tax incentives included in the extenders legislation,” added Advanced Biofuels Association president Michael McAdams. “These extenders send a significant signal to the advanced and cellulosic industry and to the markets regarding the sustained support at the federal level, and our members appreciate the certainty of a two-year extension.”

Companies like Novozymes that are members of these organizations are very happy with the action. “When you’re on a road trip, you don’t stop every 10 minutes to put in one gallon—you fill up for the long haul. That’s what these tax credits and renewable fuel policies like the RFS need too: Fuel for the long haul to drive investment, create jobs and move our economy forward.” said Adam Monroe, Novozymes President, Americas.

The Second Generation Biofuel Producer Tax Credit, Special Depreciation Allowance for Second Generation Biofuel Plant Property, Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit all expired at the end of 2013. This package extends them through 2015 adding certainty for the advanced biofuel industry and its investors.

advanced biofuels, AEC, Cellulosic, Ethanol, Ethanol News, Government

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFConcentrated Solar power markets at $1.3 billion in 2013 are anticipated to reach $53.7 billion by 2020 because the systems are able to be built at utility scale and to provide 24×7 solar renewable energy power according to a new report from ReportsnReports. Campus stationary fuel cell power is mature and available to act as a backup power source for CSP, creating greater capabilities and a better story for justifying the build out of CSP.
  • Four New York non-profits were announced as recipients of a combined $103,000 in solar energy donations from the Green Mountain Energy Sun Club. In addition to helping the recipients lower their electricity costs and better achieve their organizational goals, these donations include educational information on how solar works to help them promote solar energy in the communities they serve. The 2014 Sun Club award recipients are: Bard College, $35,000; The BLK ProjeK, $12,000; Lincoln Center for the Performing Arts, $50,000; and Randall’s Island Park Alliance, $6,000.
  • At the request of the U.S. Department of Agriculture and the USDA’s Agricultural Research Service (USDA ARS), the ATIP Foundation (Agricultural Technology Innovation Partnership) has established a public-private partnership to enhance research on sustainable soil health for multiple land uses in agriculture.
  • ReneSola Ltd has announced it has been awarded a “TOP BRAND PV” seal in the union of states of Belgium, the Netherlands, and Luxembourg (“Benelux”) by EuPD Research, the leading market intelligence company in the sustainable business sector and an independent brand management appraiser of module manufacturers in Germany, Italy, the United Kingdom, Benelux, and France.
Bioenergy Bytes

ACORE Releases Renewable Energy in America Outlook

Joanna Schroeder

The American Council On Renewable Energy (ACORE) has released The Outlook for Renewable Energy in America: 2014, jointly authored by U.S. renewable energy trade associations from the power, thermal, and fuel sectors. The Outlook assesses the renewable energy marketplace and forecasts the future of each renewable energy technology sector, from the perspectives of each of the associations, and provides a list of policy recommendations by the respective associations that would encourage continued industry growth.

OutlookCover1“ACORE applauds the unity of the renewable industry community and this united front as reflected in The Outlook for Renewable Energy in America: 2014,” said ACORE President and CEO, Michael Brower. “The report demonstrates the many public and private sector opportunities that exist at the national, regional and local levels for continued industry advancement and investment; however, they are not one-size-fit-all solutions for every renewable technology.”

Bower noted that the articles in the report detail specific market drivers for the biofuel, biomass, geothermal, hydropower, solar, waste and energy sectors.

Jeffrey Holzschuh, Chairman of Institutional Securities at Morgan Stanley said that greater American consumer interest in renewable energy, along with more private sector investment, have caused the financial markets to respond. “Spurred by growing individual as well as business demand, private sector investment in the U.S. clean energy sector surpassed $100 billion in 2012-2013, stimulating significant economic development while supporting hundreds of thousands of jobs.”

The trade associations who participated in the Outlook are: Advanced Biofuels Association; American Wind Energy Association; Biomass Power Association; Biomass Thermal Energy Council; Energy Recovery Council; Geothermal Energy Association; Growth Energy; National Hydropower Association; Ocean Renewable Energy Coalition; and the Solar Energy Industries Association.

The Outlook for Renewable Energy in America: 2014 shows the potential of America’s renewable energy economy to extend beyond one fuel choice or pipeline, to provide the country with an unparalleled opportunity to reinvigorate the U.S. economy while protecting our environment.

Renewable Energy, Research

Can Farm Movies Improve Ag’s Image?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “Do you think farm movies can help the public image of agriculture?”

It looks like the majority polled believe these farm movies can play a positive role in improving the agricultural industries image. Getting people to theaters to watch them might be tricky, but the old fashioned word-of-mouth advertising could be the ticket. I, personally, am eager to watch them and share with friends and family.

Our poll results:

  • Definitely – 38%
  • Maybe – 27%
  • No – 11%
  • Not sure – 4%
  • Can’t hurt – 15%
  • Other – 5%

Our new ZimmPoll is now live and asks the question, “What’s the largest percentage of your 2014 marketing budget?”

Next week is the annual Agri-Marketing Conference in Jacksonville, FL. Agribusiness/agency/media and more will be networking and participating in professional development activities. We’re pretty sure this question will be a part of the conversation.

ZimmPoll

New Biodiesel Mandate Pleases Canadian Farmers

John Davis

gfoThe new biodiesel requirement north of the border is pleasing farmers in that area. The trade group Grain Farmers of Ontario welcomed its province’s new 2 percent biodiesel mandate, expected to be a boon for soybean farmers.

“The creation of an Ontario Greener Diesel mandate will reduce greenhouse gas emissions generated by the
transportation sector and will help build a market for made-in-Ontario soy biodiesel,” says Henry Van Ankum, Chair of Grain Farmers of Ontario. “Local fuel made from soybeans reduces greenhouse gas emission in vehicles up to 85 percent and the mandate will provide a potential market for 680,000 tonnes of soybeans.”

Creating new markets takes a commitment and collaboration between government and industry. “We were pleased we could work with our partners at the Ontario government and the Canadian Renewable Fuels Association to initiate this Greener Diesel mandate and grow this market for our Ontario farmers,” added Van Ankum.

The mandate started at 2 percent this week and moves up to 4 percent in 2017. It’s expected to reduce the amount of greenhouse gas emissions equal to taking 280,000 cars per year off the road.

Biodiesel, International

Biodiesel Tax Incentive Moves Out of Committee

John Davis

cap pic1A measure that would renew the federal $1-per-gallon biodiesel tax incentive has cleared a congressional committee. The credit, which expired at the end of 2013, passed the Senate Finance Committee as part of a package of tax provisions. The news was welcomed by the National Biodiesel Board, which still appeared miffed it expired in the first place, as Congress let happen in 2010 and 2012.

“This is the third time in five years that the biodiesel incentive has lapsed, making it incredibly difficult for biodiesel businesses to plan for expansion or build infrastructure,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board, the industry trade association. “We applaud the Senate Finance Committee for taking the first step toward extending it and urge the House and Senate to continue the committee’s bipartisan work by acting quickly to extend this credit so the biodiesel industry can get back to work.”

“The U.S. biodiesel industry has plants in almost every state in the country, and this tax incentive is something Congress can pass today to stimulate growth and economic activity at all of them,” Steckel added. “This incentive is a job creator, and it also pays tremendous dividends in terms of reducing harmful emissions and strengthening our energy security.”

The measure calls for the incentive to be restored retroactively back to Jan. 1, 2014, and extended through the end of 2015.

Biodiesel, Government, Legislation, NBB

SheerWind Commissions Pilot Project in Dubai

Joanna Schroeder

SheerWind Inc., had commissioned a pilot project at Dubai Aluminium PJSC (DUBAL). The 250kW INVELOX wind power generation pilot project will help sustainably offset the company’s carbon emissions.

SheerWind-INVELOX-Demo3“We are very pleased to be the pioneer in this innovative pilot project in the GCC, especially as the project will contribute measurably to environmental conservation,” said DUBAL’s Tayeb Al Awadhi. “As a responsible corporate citizen, we are committed to sustainable principles. Moreover, the project is closely aligned with our corporate emphasis on continuous improvement through innovation.”

According to Sheerwind, its INVELOX technology offers high-performance, cost-efficient wind energy. When compared to average wind turbine technology:

  • Produces 600% more electrical energy (kWh)
  • Operates at wind speeds as low as 1 mile per hour
  • Reduces installation capital cost to less that $750 per KW
  • 90% less land use than traditional wind power generation utilities
  • Increases energy production capacity to record high of 72%
  • No harm to humans, animals, or flying creatures

Steve Hill, COO of SheerWind, added, “This installation is very exciting for SheerWind. We see this as the beginning of a great partnership with a company that is committed to reducing its carbon footprint and finding ways to make a difference globally. This partnership will assist in SheerWind’s mission to provide affordable, clean, electrical energy to anyone—anywhere.”

Electricity, International, Renewable Energy, Wind

Oil Spills & Contaminated Gas – Ethanol Takes On API

Joanna Schroeder

RFA_GrowthEnergy_Dear_Oil_AdA recent edition of the New York Times and Politico have published what the Renewable Fuels Association (RFA) and Growth Energy are calling “good-humored, but factual takedown of Big Oil’s false, hypocritical attacks against clean, renewable ethanol”.

In response to American Petroleum Institute’s (API) current national anti-biofuel campaign, the two ethanol associations have published an ad that is an open letter to Jack Gerard, API president in Politico and all DC editions of the New York Times.

Dinneen and Buis write, “Despite the millions of dollars your industry has spent on bogus TV ads, there hasn’t been a single reported case of engine damage from ethanol blended fuels like E15. But last week, Exxon admitted selling customers in Louisiana more than 5 million gallons of oil-based gasoline that was so bad that it’s been stopping cars dead in their tracks. In fact, one auto shop reported 40 or 50 customers who had trouble starting their engines as a result of Exxon’s contaminated gas. That’s 40 or 50 more cases of engine problems than have been reported in the entire country from E15, and that’s just one shop in Baton Rouge!”

With summer around the corner consumers are getting their boats ready for the waters and API has taken the opportunity to run ads about boats not being able to use E15 or other higher blends of ethanol. However, what API does not acknowledge is that the Environmental Protection Agency (EPA) did not approve E15 for small engines or boats.

Going directly at the current API boat ads, the open letter continues, “While your ads are misleading people about the impact of ethanol on marine engines, boats in Houston are in dry dock because of your oil spill! In fact, that one company has been fined for 77 different oil spills since 2008, which means they have averaged more than one oil spill per month for the last six years. That’s a lot of boaters impacted by oil spills, Jack.”

The open letter is summed up in one simple closing thought, “You see, Jack, the real environmental peril is oil, not renewable fuels like ethanol.”

biofuels, Ethanol, Growth Energy, Oil, RFA