Celebrating National Biodiesel Day

Cindy Zimmerman

rudolf-diesel_3946456981091095575Yesterday we celebrated the patron saint of Ireland – today it is the patron saint of biodiesel.

National Biodiesel Day is celebrated on March 18, which is the birth date of Rudolf Diesel, inventor of the engine that bears his name. He would be 156 years old today, but he died a century ago last September, disappearing from a ship in the English Channel in an apparent suicide, despite his many accomplishments.

Diesel was only 39 when he introduced the first high-compression prototype engine in 1897, designed to run not on petroleum but on peanut oil. Today, diesel engines are responsible for moving the majority of goods, including electronics, from manufacturer to consumer. But, more than ever those engines are being run on the type of fuel their inventor envisioned.

“National Biodiesel Day is a reminder that diversity in fuel supply means more stable prices and less dependence on a global oil cartel. That benefits the economy, the environment and leaves more opportunities for our future,” said Joe Jobe, CEO of the National Biodiesel Board. “It’s in everyone’s best interest to have a choice in transportation fuel, and that’s where biodiesel – America’s first Advanced Biofuel – comes in.” With plants in almost every state, biodiesel production amounted to nearly 1.8 billion gallons in 2013.

Jobe notes that the EPA proposal to lower the Renewable Fuel Standard (RFS) this year would be a step backward for production, setting the volume requirement at just 1.28 billion gallons. “The biodiesel industry is asking the Administration to revise the biodiesel proposal so that it is at least consistent with last year’s production,” he said. Rudolf would probably agree.

Biodiesel, NBB

Scripps Research Develops Lower Cost Fuels

Joanna Schroeder

Researchers from the Florida campus of The Scripps Research Institute (TRSI) have devised what they believe is a new and more efficient way to convert the major components of natural gas into useable fuels and chemicals. The research, led by TSRI Professor Roy Periana, uses chemistry and nontraditional materials to turn natural gas into liquid products at much lower temperatures than conventional methods.

“We uncovered a whole new class of inexpensive metals that allows us to process methane and the other alkanes contained in natural gas, ethane and propane, at about 180 degrees centigrade or lower, instead of the more than 500oC used in current Energy Diagramprocesses,” said Periana. “This creates the potential to produce fuels and chemicals at an extraordinarily lower cost.”

Methane, the most abundant compound in natural gas, is difficult and costly to convert into useable liquid products. With a need for lower carbon fuels, new processes are required to convert methane to fuel and chemicals in a way that is competitive with petroleum-based products.

Methane, ethane and propane, the major components in natural gas, belong to a class of molecules named alkanes that are the simplest hydrocarbons and one of the most abundant, cleanest sources of energy and materials. At the core of technologies for converting the alkanes in natural gas is the chemistry of the carbon-hydrogen. Because of the high strength of these bonds, current processes for converting these alkanes employ high temperatures (more than 500oC) that lead to high costs, high emissions and lower efficiencies.

Periana has been thinking about this type of problem for decades and has designed some of the most efficient systems for alkane conversion that operate at lower temperatures. However, when Periana and his team examined these first-generation systems they realized that the precious metals they used, such as platinum, palladium, rhodium, gold, were both too expensive and rare for widespread use.

“What we wanted were elements that are more abundant and much less expensive that can carry out the same chemistry under more practical conditions,” said Brian G. Hashiguchi, the first author of the study and a member of Periana’s lab. “We also wanted to find materials that could convert methane as well as the other major components in natural gas, ethane and propane.”Read More

Alternative energy, biochemicals, Natural Gas

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFThe global Concentrated Photovoltaic (CPV) market is expected to undergo a major growth spurt in the next five years, with its cumulative installed capacity forecast to jump from 357.9 Megawatts (MW) in 2014 to 1,043.96 MW by 2020, according to a new report from GlobalData. According to the report, China and the US dominated the global CPV market in 2013, with their cumulative installed capacity reaching shares of 35.4% and 33.3%, respectively. Spain stood third after the US with 12.2%, followed by Portugal and Italy, with respected shares of 5.1% and 4.3%.
  • Mr. Simon Doray has joined Purthanol Resources and its subsidiary Biocardel Quebec to oversee a new joint venture BioMix Fueling Solutions Inc. Doray also serves as chairman of the board for the Quebec Council of Biodiesel.
  • Midwest Energy and Clean Energy Collective have signed an agreement to build a 1MW community solar photovoltaic array, the largest in Kansas, with panels owned by Midwest Energy members. The 4,000-panel solar garden will be located within the Midwest Energy service territory, and the purchase price for panels will include all available rebates and tax incentives, as if the system were located on the customer’s roof. Customers will receive credit for the power their panels produce directly on their Midwest Energy electric bills.
  • Southwest Iowa Renewable Energy has joined the Renewable Fuels Association. The company is located in Council Bluffs, Iowa and produces more than 120 million gallons of ethanol and more than 330,000 tons of Dried Distillers’ Grain (DDG) each year.
Bioenergy Bytes

E15 Comes to Cambridge, Nebraska

Joanna Schroeder

Anew E15 pump in Cambridge NebraskaAnew Travel Center in Cambridge, Nebraska is now offering E15 to consumers for use in 2001 and newer vehicles. E15 is currently available in 14 states.

“Anew Travel Center is pleased to announce the opening of our new fueling facility,” said Cliff Meeuwsen, member of Anew. “Through the installation of the Flex Fuel dispensers, we aim to promote the use of cleaner vehicles while also displacing the country’s dependence on foreign oil and creating employment positions that will benefit the local economy.”

The station will have ten pumps—five Flex Fuel dispensers that offer ethanol blends including E10, E15, E30 and E85, and five flexible fuel dispensers that offer biodiesel blends including B0, B2, B5 and B20. In doing so, Anew Travel Center also joins more than 3,000 retailers throughout the nation who have the infrastructure available to provide motorists with a choice of various ethanol blends.

“Seeing retail leaders like Anew, MAPCO Express, Murphy Oil and Minnoco offering E15 continues to validate that there is a viable market for higher ethanol blends. When given the choice, consumers will seek the fuel that costs less, is better for our environment and improves the performance of their vehicles. The momentum building around E15 is really quite impressive,” stated Tom Buis, CEO of Growth Energy whose association assisted Anew in the process of offering E15 at the pump.

E15, Ethanol, Growth Energy

Old Pipeline Could Get New Life Carrying Biodiesel

John Davis

Hawaii_state_flagAn old pipeline in Hawaii originally used to transport petroleum-based asphalt could get a new life carrying biodiesel. This article from the Hawaii Tribune-Herald says the state Board of Land and Natural Resources is considering whether to allow the Shell Oil pipeline built in the 1960s at Hilo Harbor to carry the green fuel.

A new company, Hoku Kai Biofuels LLC, has acquired the old asphalt plant property and wants to use the pipe to transport vegetable-based biofuels from cargo ships to storage tanks on its land, according to the state Department of Land and Natural Resources.

BLNR will consider whether to grant in concept a 65-year easement for the pipeline. Final approval is contingent on a finding of no significant impact from an environmental assessment.

In a memo to the board, DLNR staff say the biofuels would be “distributed to various power producers as an alternative to fossil fuels.”

Officials with Hoku Kai Biofuels say they have had some conversations with Hawaii Electric Light Co. about buying the fuel.

Biodiesel

Minnesota Biodiesel Mandate Survives Delay Attempt

John Davis

mnstatelegis1A bill that would have delayed implementation of a 10 percent biodiesel mandate in Minnesota diesel fuels was stopped in a state legislative committee. This story from WDAZ-TV says the bill from Sen. Melisa Franzen, D-Edina, was defeated overwhelmingly in the state Senate Commerce Committee.

She said most cars and light trucks are built to handle 5 percent biodiesel, which now is required to be sold in Minnesota, not the planned 10 percent, known as B10.

Biodiesel supporters said they have heard this argument before, reaching back years to when ethanol first was required to be blended with gasoline. Problems have been few and far between once the state mandated that gasoline and diesel contain plant-based fuel, they said.

Jerry Schoenfeld, who represents soybean farmers and the Minnesota Biodiesel Council, said those who support Franzen’s bill sit on a biodiesel task force but never brought up their complaints until the bill surfaced recently.

Both sides used Illinois as an example to support their cause. Those wanting a B10 delay pointed to fuel-blamed engine problems such as clogged filters and acceleration hesitation. Biodiesel supporters said that even in Illinois, Mercedes-Benz praised biodiesel and urged owners to monitor oil levels and strictly follow oil change intervals, but few problems have been reported.

A 2008 law in Minnesota upped the current 5 percent blend to 10 percent when state officials believe there is enough biodiesel to meet that demand, and they had decided that will come on July 1st.

Biodiesel, Government, Legislation

UNICA Pleased With CARB Proposal

Cindy Zimmerman

UNICAThe Brazilian sugarcane ethanol industry is pleased with the California Air Resources Board (CARB) proposal last week to revise Indirect Land Use Change (iLUC) numbers for biofuels.

Brazilian Sugarcane Industry Association UNICA applauded CARB for “once again declaring that sugarcane ethanol is one of the most environmentally friendly biofuels supplying today’s market.”

UNICA North America Representative Leticia Phillips notes that the CARB staff proposal to revise ILUC estimates under the state’s Low Carbon Fuel Standard shows the Brazilian sugarcane biofuel generates about half the indirect emissions that CARB originally suggested during its rulemaking process in 2009. “If implemented, these revised ILUC estimates will confirm what numerous other studies have shown: sugarcane ethanol is one of the most environmentally friendly biofuels supplying today’s market,” she said in a statement.

Phillips adds that UNICA looks forward to providing detailed comments to this CARB proposal as they have done in the past.

Brazil, Ethanol, Ethanol News, Indirect Land Use, International

Wind Power Line to Move Energy to the East

John Davis

wind energy in U.SA proposed $2.2 billion, 750-mile long, high-voltage overhead transmission line could solve some of the issues of getting wind energy from the areas out west producing it to the areas in the east that need that power. This article from the Minneapolis Star Tribune says Clean Line Energy Partners’ idea is to build a line from the wind turbine farms of Kansas to Indiana, where it can be distributed to urban areas. But the project is meeting some resistance from farmers in the areas it would traverse.

The idea is supported by environmental groups who say it is an opportunity to take a big step forward for an energy source that could reduce the nation’s reliance on fossil fuels and cut air pollution. Clean Line has four other transmission line projects in the works in the West and Midwest.

Clean Line says the project will be an economic boon, with all four states seeing new jobs for construction and local companies providing things like parts and concrete. Lawlor said consumers would benefit, too, by the new source of power that would drive down electricity costs.

Yet many landowners have organized in opposition to Clean Line. They worry about whether the towers and lines will reduce property values, get in the way of farming operations like crop-dusting and irrigation, and even create health risks for those living so close to high-voltage wires.

“This is some of our best ground,” said Kent Dye, 56, who farms about 7,000 acres in northeast Missouri’s Monroe County. “This line — there’s no proven need for it. There are no contracts to provide power, no contracts to sell on the other end.”

Clean Line officials believe that after they have a chance to talk to the farmers and ranchers who have concerns, they’ll be able to convince them of the benefits of easements they can collect money on and the long-term environmental benefits for everyone.

Wind

Analysis: Despite EPA Issues, Ethanol Profitable

John Davis

While most of the news around ethanol seems to focus on its issues with the government, a new analysis shows that the green fuel is in one of its longest profitability runs ever. This analysis from the University of Illinois shows that despite more recent news about troubles with the Environmental Protection Agency (EPA) and its proposal to cut the amount of ethanol in the Nation’s fuel supply, things have been pretty positive for the ethanol industry lately.

There have been basically four sub-periods in terms of net profits: i) high profits from 2007 through mid-2008, ii) breakeven from mid-2008 through the end of 2011, iii) losses for 2012 through early 2013, and iv) high profits again from spring 2013 through the present. The most recent period is the longest run of uninterrupted profits since the series began in early 2007. During this one-year run, profits averaged $0.93 per bushel of corn processed and reached a new high of $2.55 per bushel in early December 2013. The picture presented here is certainly not one of an industry that has suffered because of recent policy proposals.
ethanolprofits1
The author cites several factors that could keep the recent run of profits from continuing for a longer period of time, including DDGS prices at unprecedented high levels, as well as documented “co-integrating” relationship between ethanol and corn prices, simply, if the ethanol price is too high relative to corn prices, then either the ethanol price must fall or the corn price must rise.

Ethanol, Ethanol News

Farmers Offered Incentive to Use Propane

John Davis

perc-farmFarmers are being offered an incentive to use clean-burning propane in their operations. During the recent Commodity Classic in San Antonio, Tx., Mark Leitman, director of business development and marketing for the Propane Education and Research Council (PERC), talked to Tom Steever with Brownfield Ag News and told him that his council is funded by a 4/10-of-a-cent checkoff that helps research, safety and training programs, and includes a commitment to ag-based operations in the Propane Farm Incentive Program.

“We’re constantly looking for new technologies to invest in, trying to find a new application for propane in agriculture or make a grain dryer, for example, and make it better,” he said, adding that new propane engines are much more efficient than the older models, boosting output by 25 percent or more, as demonstrated from their non-scientific findings from last year’s farm incentive program that had farmers reporting a 36 percent reduction in fuel use and 57 percent in cost savings. That’s why he’s optimistic they’ll get more farmers to sign up for this year’s incentive. “We’d love farmers to take advantage of our Farm Incentive program, where they could receive an incentive of up to $5,000.”

Mark admitted a perfect storm of issues – big crop drying years and a colder than usual winter, among other things – did cause a significant spike in prices for propane this year, but he believes some important lessons were learned that will help his members keep prices more stable in the future.

“We’re taking a look at the infrastructure and trying to figure out where our organization can invest in ways to improve things so we’re better prepared moving forward,” he said.

More information on the incentive program is available at Agpropane.com.

Listen to Mark’s interview with Brownfield Ag News here: Mark Leitman, PERC
2014 Commodity Classic Photos

Audio, Commodity Classic, Propane