German Biodiesel Exports Set Record

John Davis

GermanflagGerman biodiesel sales might be down, but the country’s exports of the green fuel set a record last year. About a week ago, I reported how Germany’s biodiesel sales were down last year, about 300,000 tonnes below the five-year average. But this article in Biodiesel Magazine says Germany exported 480.3 million gallons (just under 1.6 million metric tons) in 2013, a jump of 20 percent from 2012.

The Union zur Förderung von Oel- und Proteinpflanzen (UFOP) notes that, in the same period, biodiesel imports fell from 228.1 million gallons to 168.1 million gallons.

The UFOP states several reasons are responsible for this. The tariffs put on Argentine and Indonesian biodiesel are now showing their effect. Less than only 2.25 million gallons of biodiesel was imported from Indonesia. UFOP also says the export balance “confirmed the competitiveness of the German biodiesel industry and consequently its international marketing expertise.”

The UFOP states that the U.S., with 54 million gallons, is its most important partner outside the EU.

Biodiesel, International

IBB Asks for Iowa Biodiesel Tax Credit Extension

John Davis

IowaBiodieselBoardLogoWhile we’ve heard a lot about the federal $1-a-gallon biodiesel tax incentive, there’s some state credits that could help producers stay competitive. The Iowa Biodiesel Board has asked lawmakers in Des Moines to extend the .02 per gallon refundable credit for the first 25 million gallons of biodiesel produced in any single plant.

The incentive is set to expire at the end of calendar year 2014, but Senate File 2333 would extend the credit through 2019.

During the Iowa Biodiesel Board’s annual Biodiesel Day on the Hill event today, IBB said the state legislation is necessary to mitigate impact from potential changes to the federal Renewable Fuel Standard, provide some market certainty and keep Iowa competitive with surrounding states.

“Unless changes are made to current federal biodiesel policy, we will likely see significant nationwide consolidation of production capacity,” said Grant Kimberley, executive director of IBB. “The extension of the biodiesel producer incentive will encourage production to remain in Iowa, substantially benefiting Iowa’s economy and biofuels leadership position.”

The Iowans point out that their neighboring states have become more aggressive in their promotion of biodiesel, such as Missouri’s production incentive of $.30 per gallon on the first 15 million gallons produced and Illinois’ exemption from state sales tax on blends of biodiesel higher than 10 percent, and producers in the Hawkeye State need this incentive to stay competitive.

The bill to extend the credit passed out of the state Senate Ways and Means Committee earlier this week.

Biodiesel, Government, Legislation

ACE Takes Ethanol Message to Friends and Foes

Cindy Zimmerman

ace14-dc-alversonThere were over 25 battalions of ethanol troops on Capitol Hill this week to fight for the honor of biofuels, bringing the message to both friends and foes in Congress.

American Coalition for Ethanol president Ron Alverson, a South Dakota farmer and board member for Dakota Ethanol, says the teams had appointments with the offices of more than 130 senators and representatives, and he thought they were well received, even in enemy territory. “We went into what we thought were going to be some pretty hard places – representatives from Alabama, Pennsylvania, Rhode Island,” he said. “They were very cordial and they listened well … we were really pleased.”

ace14-dc-johannsWhen meeting with friends like Senator Mike Johanns (R-NE), the ethanol supporters delivered messages of gratitude and asked advice for approaching less friendly lawmakers. They also provided “ammunition” for allies in the form of the packets of the latest information to defend against some of the more popular arguments against ethanol, such as food versus fuel and engine issues with higher blends. “We’ve got some really good arguments and good data…all we can do is go out and tell our story,” said Alverson.

Listen to an interview with Alverson here: Interview with Ron Alverson, South Dakota farmer and American Coalition for Ethanol president


2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

ACE, Audio, Ethanol, Ethanol News, Government

Siemens Invests in Offshore Wind Manufacturing in UK

Joanna Schroeder

Siemens to Build Major Offshore Wind Manufacturing Site in the UKSiemens will be investing £160 million (EUR190m) in wind turbine production and installation facilities in Yorkshire (UK). The facility will be spread across two sites including the Green Port Hull project construction, assembly and service facility and a new rotor blade manufacturing facility in nearby Paull, in East Riding. Siemens’ port partner Associated British Ports (ABP) is investing a further £150 million in the Green Port Hull development. The investment will provide a huge boost to the UK’s offshore wind industry and the Humber region.

“This is a massive vote of confidence in our long-term economic plan,” said Prime Minister David Cameron. This investment is going to create lots of new jobs and opportunities, meaning more financial security and peace of mind for families and a more resilient economy for our country.”

The Green Port Hull project has been in development for nearly four years and is the product of an effort between many national and local political, business and community parties and many people within Siemens in the UK, Denmark and Germany, and ABP. The investment is a landmark moment for the UK offshore wind industry. It is the first manufacturing plant of its kind for Siemens next generation blade technology (IntegralBlade) designed for Siemens SWT-6.0-154 6 megawatt (MW) wind turbine. Each rotor blade is 75 meters long and when rotating covers an area the size of two and a half football pitches.

“Our decision to construct a production facility for offshore wind turbines in England is part Siemens to Build Major Offshore Wind Manufacturing Site in the UKof our global strategy: we invest in markets with reliable conditions that can ensure that factories can work to capacity,” said Michael Suess, member of the managing board of Siemens AG and CEO of the Energy Sector. “The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognizes the potential of offshore wind energy within the overall portfolio of energy production.”

Suess continued, “The offshore wind market in Great Britain has high growth rates, with an even greater potential for the future. Wind power capacity has doubled here within two years, to roughly 10 gigawatts. By 2020, a capacity of 14 gigawatts is to be installed at sea alone to combine the country’s environmental objectives with secure power supply. Projects for just over 40 gigawatts are currently in the long-term planning.”

Green Port Hull is planned to be operational to meet Round 3 requirements in early 2016. The start of production at the blade factory is scheduled to be in the middle of 2016 with full production levels reached from mid 2017 onwards.

Alternative energy, International, offshore wind, Wind

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFAccording to a new report released by the American Council for an Energy-Efficient Economy, energy efficiency is the cheapest method of providing Americans with electricity. Energy efficiency programs aimed at reducing energy waste cost utilities only about three cents per kilowatt hour, while generating the same amount of electricity from sources such as fossil fuels can cost two to three times more.
  • Representatives from 24 countries will come together with Washington leaders for the GEA International Geothermal Showcase in Washington D.C. on Tuesday, April 22. The Showcase will examine the outlook for the geothermal market and the policies driving geothermal development. GEA will release the results of its new annual U.S. and International Market Update exclusively to event attendees.
  • SunPower Corporation has announced the sale of more than 70 megawatts (MW) of cell packages to the Huaxia Concentrated Photovoltaic Power Co., Ltd., joint venture (JV) in Inner Mongolia, China. These packages will be used for the first phase of two SunPower C7 Tracker (C7) projects, which includes a 20-MW project in Saihan and a 100-MW project in Wuchuan. Both are located in Hohhot, Inner Mongolia and completion is expected in 2015.
  • Pellet Technology USA (PTUSA) has entered into an engineering, procurement and construction (EPC) joint development agreement with ICM, Inc. that will see it become the exclusive contractor for PTUSA in the United States and abroad. Recently, PTUSA announced that ICM had been awarded the EPC contract for PTUSA’s a one-of-a-kind R&D facility Commercial Demonstration Facility in Gretna, Nebraska. The facility allows PTUSA to develop, test and modify feedstock inputs, blends and finished products for their industry clients, using PTUSA’s patented technology.
Bioenergy Bytes

API Runs Additional Biofuel Attack Ads

Joanna Schroeder

The American Petroleum Institute (API) will be running additional advertisements criticizing biofuels and the ethanol industry is once again fighting back.

“Once again, API has decided to perpetuate misinformation to protect their bottom line. They will do anything to protect their record profits and market share, even at the expense of consumer savings and a cleaner environment,” said Tom Buis, CEO of Growth Energy.

oil spill lake michigan“This recent series of ads are nothing more than fear mongering and misleading information. Time and again, the facts show that there is no substantial correlation between ethanol production and food prices,” continued Buis. “If Big Oil wants to point the finger at those who are driving up food prices, they should look no further than a mirror. In fact, a 2013 World Bank study has proven that crude oil prices are responsible for at least 50 percent of the increase in global food prices since 2004.”

Buis notes that marine and small engines are warrantied to use up to 10 percent ethanol and are not legally allowed to use E15 or other higher ethanol blends. He said the campaign has been designed to scare consumers, E15 is voluntary for use, and any suggestion that consumers are required to use E15 in small engines is completely misleading and false.

While the ads lay blame on the biofuels industry for additional environmental damage, Buis said that Big Oil a long history of ignoring environmental damage they are directly responsible for. “The sheer nerve to accuse biofuels of causing environmental harm on the 25th anniversary of the massive Exxon-Valdez spill, and the present-day oil slick off the coast of Texas, as well as another spill in Lake Michigan just yesterday, shows that Big Oil has a complete disconnect with reality and only cares about lining their pockets at the expense of the American consumer and our environment,” concluded Buis.

biofuels, Ethanol, Growth Energy, Oil

Biodiesel Tax Credit Impacts for Blenders, Producers

John Davis

us-capitol-fiscal-cliff-voteIf the biodiesel tax credit is extended, it could change the way producers and blenders value the incentive. This article from Biodiesel Magazine weighs how renewal of the federal $1-a-gallon biodiesel blenders credit could be changed to provide more incentives for producers.

If there is a possibility of the tax credit being reinstated retroactively for 2014, there would be a monetary value placed on the option to apply for and receive the tax credit when reinstated. Since the credit goes to the person blending the biodiesel from B100 to B99.9 by adding 0.1 percent ultra-low sulfur diesel (ULSD), buyers of biodiesel should pay a premium for B100 over B99.9. If there was no hope of the tax credit being reinstated, there would be no price differential between B99.9 and B100, and we can assume that the actual value of the premium for B100 over B99.9 is a function of the probability of reinstatement.

The article goes on to explain how the “Biodiesel Tax Incentive Reform and Extension Act of 2014,” sponsored by Sens. Maria Cantwell (D-WA) and Chuck Grassley (R-IA), would change the credit to a producer’s credit, and not one for blenders. That could change the calculus in figuring if it would pass as proposed, eliminating some options for the blenders out there.

Biodiesel

Ag Secretary Takes Time on Ag Day for Ethanol

Cindy Zimmerman

ace14-dc-vilsackThere are lots of activities for National Agriculture Day going on today in Washington DC, including a big celebration unveiling a statue of Dr. Norman Borlaug in the Capitol, but Agriculture Secretary Tom Vilsack still took time to meet with members of the American Coalition for Ethanol in town this week to visit Congressional offices

“The country needs a robust renewable fuel industry,” said Vilsack. “It provides choice for consumers and less cost gas at the pump. It helps to create hundreds of thousands of jobs which is important for the economy. It stabilizes farm income, it’s better for the environment, and it makes us a safer nation because we’re less reliant on others for our energy and fuel sources. So we need to continue to have a robust commitment to this industry, we need to expand it and grow it.” Brief interview with Secretary Vilsack after ACE visit

The secretary spoke to the more than 80 ethanol industry about what USDA is doing to achieve that goal, including finding creative ways to increase higher ethanol blend pumps, promoting exports of ethanol to Japan, India and China, and continuing to work towards encouraging use of higher blends in this country.

2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

ACE, Audio, biofuels, Biofuels Beltway, Ethanol, Ethanol News, Government, USDA

Big Turnout for ACE Biofuels Beltway March

Cindy Zimmerman

ace14-dc-brianAn enthusiastic crowd of more than 80 ethanol supporters from 15 states are chomping at the bit to be set loose on Capitol Hill to visit the offices of Congress members and educate them about the importance of biofuels during the American Coalition for Ethanol (ACE) Biofuels Beltway March.

“We’ve got people from all walks of life here,” said ACE Executive Vice President Brian Jennings. That includes not just ethanol producers and corn farmers, but bankers, truckers, cattle ranchers and students. “It shows the diversity of this industry, the breadth and depth of support we have out there in the grassroots for ethanol.”

ace14-dc-crowdJennings says 40 percent of the group gathered for this sixth annual DC event have never visited the office of a Congressional representative before. “We try to give them some advice,” he said. “Most importantly, tell your story.”

The ACE group is hearing this morning from the Assistant Administrator of the Environmental Protection Agency, the Secretary of Agriculture, and the Special Assistant to the president for Energy and Climate Change before heading to the Hill to meet with congressional representatives.

Listen to my interview with Brian here: Interview with Brian Jennings, ACE
2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

ACE, Audio, Biofuels Beltway, Ethanol, Ethanol News, Government

When Cows Fly: Tallow-to-Biodiesel to Fuel Aviation

John Davis

leogroupA company operating in the U.K. has just completed its biggest shipment of tallow-to-biodiesel, and the green fuel is set to power aviation. This article from Bdaily Business News says Leo Group has shipped 10,700 tonnes of tallow recycled into about 3 million gallons of biodiesel in four ocean tankers.

The overseas shipments come as the company marks another environmental milestone; the tallow and poultry oils produced at both of these rendering plants are now certified under the International Sustainability & Carbon Certification (ISCC) scheme.

The ISCC seal is used by industry to distinguish between truly sustainable and unsustainable biomass fuels.

Leo Group managing director Danny Sawrij said: “We are delighted that customers around the world are drawing upon our expertise to drive down the world’s carbon footprint.

“Waste is not in the Leo Group’s vocabulary or culture – everything these days has a use and 100% of all by-product materials on our sites are now recycled.”

Biofuels use in Europe is expected to increase over the next few years, especially those fuels produced from non-food sources.

Biodiesel, International