Biofuels Supporters Heading to Beltway

Cindy Zimmerman

ACE Biofuels Beltway LogoEthanol advocates from around the country are marching on Capitol Hill this week with the message that the Renewable Fuel Standard (RFS) is working.

It’s the 6th annual Biofuels Beltway March organized by the American Coalition for Ethanol (ACE). “We have more than 80 people registered to attend, which is our highest attendance yet,” said Director of Strategic Projects Shannon Gustafson. “Those attending the event are fuel retailers, farmers, ethanol producers, bankers, and business owners representing 15 different states.”

The event officially kicks off on Tuesday when attendees will hear from representatives of the Environmental Protection Agency, USDA, and the White House. After that, the marchers will be split into groups to attend meetings on Capitol Hill Tuesday afternoon and Wednesday. “So far we have meetings scheduled with more than 130 offices on Capitol Hill,” said Gustafson, who anticipates they will have even more before they begin.

In addition to carrying the message that the RFS is working, supporters will also be telling lawmakers how ethanol benefits consumers, decreases our dependence on foreign oil, and plays a critical role in the future of our nation’s energy independence.

Domestic Fuel will be there to bring it home to those of you who are unable to attend. Thanks to ACE and Patriot Renewable Fuels for making that possible.

ACE, Biofuels Beltway, Ethanol, Ethanol News, Government

Surplus Biodiesel Equipment to be Auctioned Online

John Davis

maasredwoodfalls1Surplus biodiesel equipment used to produce ASTM-6751-10 quality product from soybean oil and animal fats will be auctioned online. Maas Companies says the equipment comes from a cooperative in Minnesota and used a water wash system and meets Environmental Protection Agency requirements for the Renewable Fuels Standard.

The 3.2 million gallon per year biodiesel equipment package is surplus to the ongoing operations of FUMPA BioFuels (Farmers Union Marketing and Processing Association), a 75 year old farmer owned co-op, located in Redwood Falls, MN. FUMPA BioFuels was Minnesota’s first commercial-scale biodiesel plant, which started producing renewable fuels in 2004. Minnesota was the first state to require the use of biofuels, and FUMPA was the first refinery to meet that mandate. Lurgi PSI Inc, was the designer and builder of the plant. FUMPA BioFuels has received many awards for their innovation in the Midwest biofuels market.

The equipment includes a LURGI 3.2MGY Biodiesel Process Skid, a SOUTHERN HEAT EXCHANGER CORP. methanol recovery column, and a BALTIMORE AIRCOIL-cooling tower unit built in 2010, as well as more support items. The auction will end at 4 p.m. on April 17, and potential buyers can attend an open house on April 2 and April 16 to see the equipment for themselves. Appointments for other showings are also possible.

Biodiesel

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFIn response to a shareholder resolution, Exxon Mobil, for the first time ever, has agreed to publish a Carbon Asset Risk report on the Company website describing how it assesses the risk of stranded assets from climate change. The report will provide investors with greater transparency into how ExxonMobil plans for a future where market forces and climate regulation makes at least some portion of its carbon reserves unburnable.
  • RGS Energy has appointed Dennis Lacey to the new position of senior vice president of finance. He will be responsible for implementing and managing the company’s residential lease financing program.
  • Altus Power America Management has announced the launch of a Clean Energy Land Program with Macquarie Group to finance up to $100 million in solar and wind land energy projects in the US. The program is designed to bring to the market the most cost competitive capital to acquire lands and rights under solar and wind assets, while allowing the developers and owners of these assets to monetize those values.
  • Sempra U.S. Gas & Power and Consolidated Edison Development have announced agreements to partner in five solar projects in Nevada and California. The projects include Sempra U.S. Gas & Power’s 250-megawatt Copper Mountain Solar 3 project near Las Vegas, and Consolidated Edison Development’s CED California Holdings, LLC portfolio: the 50-MW Alpaugh 50, 20-MW Alpaugh North and 20-MW White River 1 facilities in Tulare County, and the 20-MW Corcoran 1 facility in Kings County.
Bioenergy Bytes

DISH Converts to Propane Fleet

Joanna Schroeder

DISH has deployed 47 customer service vans fueled by propane autogas in the Los Angeles (LA), California area. DISH unveiled 47 of its 200 propane autogas vehicle fleet during an event, “Driving Cleaner Solutions for Our Customers and Communities.” The ROUSH CleanTech Ford E-250 cargo vans will support residential and commercial customer service through the company’s Hawthorne and South El Monte locations.

logosmisc“DISH is proud to begin deploying a vehicle fleet in the LA area that emits fewer greenhouse gases and uses a domestically sourced fuel,” said Erik Carlson, executive vice president of service and installation at DISH. “This is just part of our larger propane autogas fleet rollout and we look forward to rolling out more across the country.”

According to DISH, there were four factors that helped them make their decisions to move to propane autogas: cost savings, national availability of a domestically sourced fuel, on-site fueling benefits and original equipment manufacturer choices that meet service requirements. As part of their move to propane, the company is also installing an onsite fueling station.

“Industry leaders such as DISH are recognizing the value that propane autogas brings to their operation,” added Todd Mouw, vice president of sales and marketing for ROUSH CleanTech. “The ability to reduce fuel costs in excess of 30 percent, significantly reduce harmful emissions and utilize an American-made energy source produces a positive ROI for all involved: shareholders, employees and the communities that DISH services.”

DISH serves 14 million customers. Currently, propane autogas is the only alternative fuel being implemented in DISH’s fleet.

Propane

Confidence Boost for Europe’s Renewable Energy

Joanna Schroeder

In a last minute addition to the European Council’s conclusions on 2030 energy targets, leaders stated the need for a “supportive EU framework for advancing renewable energies.” While an agreement has yet to be reached, European Council President Herman Van Rompuy said in a press conference that the Council would have a deal on the climate and energy framework by “no later than” October 2014.

European Council logo“This extra time could be a golden opportunity – for pro-renewables countries like Germany, Denmark and Portugal to rally round and start fighting for greater ambition for renewables and the energy security they bring,” said Thomas Becker, chief executive officer of the European Wind Energy Association (EWEA). “The conclusions show that Heads of State are wising up to the energy challenges that Europe is facing. I think the situation in the Ukraine is proving a sobering experience for policymakers over the frailty of Europe’s energy security.“ He added, “We must act and we must do it now.”

Over 160 companies and organizations have singed a statement calling for a stronger commitment from policymakers to Europe’s 2030 Climate and energy objectives. One ask: a legally binding target for renewable energy of 30 percent. If this target were met, it would reduce gas imports by nearly three times more than the 27 percent target put forward by the European Commission in January 2014, create 568,000 more jobs, save EUR260 billion extra in fossil fuel imports.

It remains unlikely that a 2030 deal will be in place before a United Nations meeting convenes in September 204, when global leaders are expected to set out plans to curb greenhouse gas emissions. The European Council is set to meet again for talks on June 26-27, 2014.

International, Renewable Energy, Wind

Stop Protecting Big Oil’s Bottom Line

Joanna Schroeder

A new TV advertising campaign is being launched in Washington, D.C. this Sunday by Americans United for Change calling for the Environmental Protection Agency (EPA) to stop supporting Big Oil’s bottom line. The EPA is currently reviewing comments of their 2014 proposed rule for the Renewable Fuel Standard (RFS). The goal of the TV ad is to underscore the consequences for rural jobs and all American consumers if they ultimately give Big Oil what they want: crippling their cheaper, cleaner renewable fuels competition.

‘Bottom Line’ follows two previous Americans United TV ads in support of the RFS, “Simple Choice” and ‘Why Mess With Success?”, and its digital ad campaign ‘Big Oil Is the Real Winner’, fighting back against the oil industry’s lies.

“Big Oil needs another giveaway from Washington like our coastal environment and economies need another BP deep-water spill,” said Caren Benjamin, executive director of Americans United for Change. “The industry already enjoys absurd loopholes that allowed the biggest companies among them to pay no taxes or even negative taxes in recent years. And while the ethanol industry voluntarily gave up their tax credit at the end of 2011, Big Oil runs attack ads against lawmakers who dare to suggest they don’t need $4 billion a year in taxpayer subsidies at a time when they’re posting $100 billion in profit. And how does Big Oil pay back the taxpayers for all their generosity? By shaking them down at the pump and polluting their ground water.”

Benjamin noted that Big oil gets whatever they ask for from Washington and said they are now asking the EPA to help put out of business their 70 cent cheaper and cleaner renewable fuels competition. “It’s time to draw the line not just because gutting the RFS is another giveaway to Big Oil, but because it’d be a huge takeaway from our rural economies, our national security, environment, and innovation towards cleaner renewable fuels of tomorrow.”

With a call to action to stop messing with the RFS Benjamin concludes that it doesn’t make sense to “mess with the success of the RFS.”

biofuels, EPA, Ethanol, Oil, RFS, Video

Iowa RFA’s Shaw Has Ag Support for Congress

Cindy Zimmerman

shaw-congressIowa Renewable Fuels Association Executive Director Monte Shaw is one of several Republican candidates vying to replace the retiring Tom Latham as Iowa’s representative in the Third Congressional District, but he may have more grassroots agricultural support than most of them.

Shaw has just announced the formation of his Iowa Agriculture Team, which includes key ag leaders from across the district. “It takes more than just great land and good weather to make Iowa the leading agricultural state – it takes great leaders,” Shaw said. “As a farm boy, I’ve still got the dirt under my fingernails and with the help of these experts I will be up to speed on the challenges facing Iowa’s farmers. I also appreciate their willingness to take our message out to the countryside and the city. Folks connected to and interested in agriculture will play key roles on our path to victory in June and November.”

Among the members of his team are Grant Kimberley of Ankeny, a 6th generation corn and soybean farmer who was just named executive director of the Iowa Biodiesel Board, and Julius Schaaf of Randolph, chairman of the United States Grain Council and a 4th generation farmer.

Shaw officially launched his campaign for Iowa’s 3rd Congressional District last month. He intends to remain in his position with Iowa RFA during the campaign with the full support of the organization’s board of ethanol producers.

Watch his campaign announcement below.

Biodiesel, Ethanol, Ethanol News, Government, Iowa RFA, Video

Virginia Biodiesel Plant Gets Permit Extended

John Davis

tidewaterbiodiesel1A Virginia biodiesel plant that says it needs a little more time to line up the finances to complete its construction has gotten help from a local city council. This story in the Virginian-Pilot says the Tidewater Biodiesel LLC plant in Deep Creek got a six-month extension on the original permission.

The council initially granted permission for the project in 2011, and the plant was to be completed in 2012. But the company said it had to put its plans on hold because of the economic climate and other complications.

A conditional-use permit allowing the project to go forward was set to expire in May.

In a letter to the city, the company said it has taken longer than expected to line up financing and acquire a 5-acre parcel on Steel Street but is close to finalizing those arrangements. It asked for a six-month extension.

By a unanimous vote, the council extended the permit by a year.

When completed, the refinery will produce 10 million gallons of biodiesel per year from waste vegetable oil.

Biodiesel

Expiring Biodiesel Tax Credit Pushed Up Profit

John Davis

The race to take advantage of the expiring federal biodiesel tax credit helped push up profits for the green fuel. Last week, we told you about the University of Illinois analysis on the profitability of ethanol. Well, the analysts from the school are back, and this time they’ve looked into the factors over the past few years that have helped push up biodiesel profits, and fear of losing the credit seems to help that market.

biodieselprofit1
Figure 1 presents the (pre-tax) estimates of biodiesel profits based on the prices and model assumptions… When returns are in the black the average is $0.35 per gallon compared to -$0.16 per gallon when returns are in the red. The two largest spikes in profitability can be traced to the effects of biofuels policies. The first major spike in 2011 was directly attributable to the race by diesel blenders to take advantage of the blender tax credit that was set to expire at the end of 2011. The second major spike in 2013 was also directly attributable to the race by diesel blenders to take advantage of the blender tax credit that was set to expire at the end of 2013 (the credit has yet to be reinstated for 2014). In addition, obligated parties under the RFS needed to incentivize expanded biodiesel production in order to meet the increased biodiesel mandate for 2013 and build up the stock of biodiesel RINs that could be used to fill the “renewable gap” in future years.

The analysts also show that 2013’s profit margin was a whopping 64.3 percent, the highest of the seven years examined, and 2011’s profit was also an impressive 54.4 percent. Overall for the period of 2007-2013, investors in biodiesel operations saw a 14.7 percent profit, more than twice ethanol’s 5.8 percent return on investment during the same period.

Biodiesel

Ethanol Industry Takes LCFS Fight to High Court

Cindy Zimmerman

The nation’s ethanol industry has decided to take its fight against the California Low Carbon Fuel Standard (LCFS) to United States Supreme Court.

rfagrowthThe Renewable Fuels Association (RFA) and Growth Energy today filed a joint petition with the U.S. Supreme Court for “certiorari to make a final determination relating to the constitutionally flawed LCFS.” The action follows a decision by the Ninth U.S. Circuit Court of Appeals in January to deny rehearing en banc in the litigation regarding the California law.

A joint release from the two ethanol groups stated, “California, through adoption of the LCFS, has violated the most basic, structural features of interstate federalism. LCFS not only discriminates against out-of-state commerce, but it seeks to regulate conduct in other States in direct contravention of our constitutional structure and at the direct expense of Midwestern farmers and ethanol producers.”

The January decision by a divided panel of the the Ninth Circuit Court reversed a previous District Court finding that the California LCFS violates the Commerce Clause of the U.S. Constitution and is therefore unconstitutional. The ethanol groups note that California officials admit the LCFS seeks to regulate greenhouse gas emissions occurring in other states “by rewarding and punishing industrial and agricultural activity taking place outside California” and in doing so systematically favors California, which they contend is unconstitutional.

Ethanol, Ethanol News, Growth Energy, RFA