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

Biofuel Organizations Call for Tax Credits Extensions

John Davis

US Capitol at dusk photo Joanna SchroederLeaders from several biofuel trade organizations are calling for the extension of some federal advanced biofuel tax credits. The Advanced Ethanol Council, Advanced Biofuels Association, Algae Biomass Organization, Biotechnology Industry Organization, Growth Energy, National Biodiesel Board, and Renewable Fuels Association have sent a letter to the Senate calling for the restoration of the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit.

The letter reads, in part, “The advanced biofuels industry is at a critical stage of development. Despite a difficult financial market, we are now operating commercial plants across the country and continue to make progress on dozens of additional projects in the final stages of development. Advanced biofuel tax credits have allowed the biofuels industry to make great strides in reducing the cost of production and developing first-of-kind technologies to deploy the most innovative fuel in the world.

“As leaders in a critical innovation sector in the United States, we are well aware of the financial constraints facing this country. However, the United States’ global competitors are offering tax incentives for advanced biofuels and in fact are attracting construction of new facilities – and associated high skilled jobs. If Congress wants American companies to continue developing these homegrown technologies in the United States, it must extend these credits. Biofuel producers are also competing with incumbent fossil energy industries who continue to enjoy tax incentives on a permanent basis.”

The letter marks the latest effort by biodiesel and ethanol producers and their backers to get better federal government support for their green fuels. Late last year, the Environmental Protection Agency undercut the industries when it proposed drastic reductions in the amount of biodiesel and ethanol to be mixed into the Nation’s fuel supply. In addition, Washington also let these vital federal tax credits expire at the end of the year.

AEC, BIO, Biodiesel, biofuels, EPA, Government, Growth Energy, Legislation, NBB, RFA, RFS

Biodiesel By-Product Could Produce More Feedstock

John Davis

purthanollogoA by-product of biodiesel production could help grow more feedstock for the green fuel’s production. This article from Biofuels Digest says Purthanol Resources Ltd has produced lipids with yeast or fungi cultivated in fermentors and fed using glycerin, and those lipids could end up being another feedstock for biodiesel production.

Oleaginous yeast and fungi were isolated and tested to produce lipids.

A high lipid content (> 50% w / w biomass) was observed.

So we went from autotrophic production bioreactors to heterotrophic production fermenters.

Another unexpected benefit of this technology is that this production system uses crude glycerol by product of biodiesel production or sweet water by product of Purthanol Resources ethanol production as a carbon source.

The basis of this project is the use of by-product of the biodiesel or ethanol production (glycerol or sweet water) as a feedstock for the growth of yeasts and fungi.

A fully functional plant using this process is expected to be set up within the next year.

Biodiesel

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