Renewable Fuels Fuel Jobs and Economy

Cindy Zimmerman

A new industry report released today shows how the Renewable Fuel Standard (RFS) is creating jobs and significant economic impact.

fuels-americaThe Fuels America coalition released an economic impact study by John Dunham & Associates showing that the industry supports more than 850,000 American jobs and drives $184.5 billion of economic output.

Renewable fuels now represent nearly 10% of America’s fuel supply and have helped reduce U.S. reliance on foreign oil to the lowest level in years. The analysis takes into account the entire supply chain for renewable fuels and quantifies the impact to the U.S. economy, including:

• Driving $184.5 billion of economic output
• Supporting 852,056 jobs and $46.2 billion in wages
• Generating $14.5 billion in tax revenue each year

The full analysis is publicly available on the Fuels America website, including localized reports for every state and every congressional district in the country.

Fuels America held a telephone press conference introducing the report results featuring comments from Jon Doggett, National Corn Growers Association public policy; Adam Monroe, Novozymes; Larry Ward, POET; and John Dunham, report author.

Listen to or download here: Fuels America new economic report

Audio, corn, Ethanol, Ethanol News, Fuels America, RFA

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFThe 22nd edition of FENASUCRO, the trade fair for sugar, ethanol, and energy technology, will take place in São Paulo, Brazil from August 26-29, 2014. FENASUCRO is the meeting place for producers, professionals, and top manufacturers of equipment, and products & services for the sugarcane agro-industry. The event offers visitors the chance to explore the entire production chain: soil preparation, planting, growing treatments, harvest, industrialization, mechanization, use of by-products, sugarcane product and by-product transportation and logistics.
  • DONG Energy Wind Power’s Country manager, Benj Sykes, has been announced as the new co-chair of the Offshore Wind Industry Council (OWIC) by Business and Energy Minister, the Rt. Hon Michael Fallon MP, who also co-chairs the group. Sykes replaces Keith Anderson, the Chief Corporate Officer of ScottishPower, who has held this role since 2010, and will remain a member of OWIC.
  • Otto Pirker from Verbund will chair Hydropower Development: Europe 2014 Summit, taking place in Porto (Portugal) on September 17-18, 2014. The event will comprise two days of formal presentations, interactive panel discussions and excellent networking opportunities, providing an ideal setting to convene with your peers to discuss both current operational and future planned hydro power plants, energy markets reform, potential barriers and support policies as well as project economics and finance.
  • UNICA, together with other unions and associations of producers from South and Central Sugarcane Technology Center (CTC) region, announced its estimate for the harvest 2014/2015 of cane sugar. The projection indicates a grind of 580.00 million tons, down 16.94 million tonnes compared to the total processed in the last harvest, which totaled 596.94 million tons.
Bioenergy Bytes

U.S. Forest Services Seeks Wood to Energy Proposals

Joanna Schroeder

The U.S. Forest Service is seeking proposals that expand wood energy use and support responsible forest management. The Forest Service also released a Wood Energy Financial App for use by community and business leaders seeking to replace fossil fuel with wood energy.

“USDA through the Forest Service is supporting development of wood energy projects that promote sound forest management, expand regional economies, and create new jobs,” said Agriculture Secretary Tom Vilsack. “These efforts, part of the Obama Administration’s ‘all of the above’ energy strategy, create opportunities for wood energy products to enter the marketplace.”

Wood Enery AppThe U.S. Forest Service published in the Federal Register the announcement of requests for proposals under the Hazardous Fuels Wood-to-Energy Grant program. The program will provide about $2.8 million to help successful applicants complete the engineering design work needed to apply for public or private loans for construction and long-term financing of wood energy facilities. In addition, the agency announced $1.7 million in funding availability under the Statewide Wood Energy Team cooperative agreement program inviting public-private teams to seek funding to advance wood energy. Activities may include workshops that provide technical, financial and environmental information, preliminary engineering assessments, and community outreach needed to support development of wood energy projects.

“Building stronger markets for innovative wood products supports sustainable forestry, reduces wildfire risk, and creates energy savings for rural America,” added Forest Service Chief Tom Tidwell.

The Forest Service has also released an eBook which contains a Wood Energy Financial App that allows users to do a simple and quick analysis to see if wood energy is a viable alternative for their community or small business. The App, which can be accessed from the Web or an eBook. The App and eBook were developed through a partnership with Dr. Dennis Becker, associate professor and Dr. Steve Taft, extension economist at the University of Minnesota; Eini Lowell, wood technology specialist at the Pacific Northwest Research Station; Dan Bihn, engineer at Bihn Systems and Roy Anderson, senior consultant at The Beck Group.

advanced biofuels, biomass

UK Announces 8 Major Renewable Energy Projects

Joanna Schroeder

The UK government has announced support for eight major renewable electricity projects giving a big boost to green energy and green jobs. By 2020, the projects will provide up to £12 billion of private sector investment, supporting 8,500 jobs, and they could add a further 4.5GW of low-carbon electricity to Britain’s energy mix (or around 4% of capacity), generating enough clean electricity to power over three million homes.

Once completed and in operation, the projects will contribute around 15TWh or 14 percent of the renewable electricity estimated to be produced by 2020, helping to put the UK well on the way to meeting its renewable energy target. The clean energy projects will also reduce emissions by 10 MtCO2 per year compared to fossil fuel power generation.

The projects have been offered under Contracts for Difference (CfD), which form part of Government’s Electricity Market Reform programme. They include offshore wind farms, coal to biomass conversions and a dedicated biomass plant with combined heat and power.

offshore-wind-power-Photo Christopher ThomondEnergy and Climate Change Secretary Edward Davey said of the announcement, “These contracts for major renewable electricity projects mark a new stage in Britain’s green energy investment boom. By themselves they will bring green jobs and growth across the UK, but they are a significant part of our efforts to give Britain cleaner and more secure energy.”

“These are the first investments from our reforms to build the world’s first low carbon electricity market – reforms which will see competition and markets attract tens of billions of pounds of vital energy investment whilst reducing the costs of clean energy to consumers,” Davey continued. “Record levels of energy investment are at the forefront of the Government’s infrastructure programme and are filling the massive gap we inherited. It’s practical reforms like these that will keep the lights on and tackle climate change, by giving investors more certainty.”

The eight projects have been awarded contracts under the Final Investment Decision (FID) Enabling for Renewables process, allocating the first CfDs that are being introduced through the Electricity Market Reform programme. Under CfDs, generators and developers receive a fixed strike price for the electricity they produce for 15 years. As a result, these contracts are vital to give investors the confidence they need to pay the up-front costs of major new infrastructure projects. The contracts are supported by the new legislative framework introduced through the Energy Act 2013. Further CfDs will be made available in the fall.

Alternative energy, bioenergy, Clean Energy, International

Lufthansa Testing Gevo’s Renewable Jet Fuel

John Davis

Lufthansa1German airline Lufthansa says it will test advanced biofuel maker Gevo’s renewable jet fuel. This Gevo news release says the goal is to get the airline to approve of Gevo’s alcohol-to-jet fuel (ATJ) for commercial aviation use.

“ATJ, like the Fischer-Tropsch pathway, has the potential to use lignocellulosic waste as feedstock, but promises to do so at less cost than Fischer-Tropsch,” said Alexander Zschocke, Lufthansa Group Senior Manager Aviation Biofuels. Lufthansa is a leader in the marketplace for alternative fuels.

“By using isobutanol as a renewable raw material for producing jet fuel, the resulting jet fuel has the mixtures of molecules typical of petro-based jet fuel making it directly compatible with engines and infrastructure. Renewable jet embodies the potential of cleaner, greener, and as we scale up, cost competitive drop-in fuels,” said Patrick Gruber, Gevo’s chief executive officer. “We greatly appreciate Lufthansa’s and the European Commission’s support of this effort. Through initiatives like this, the commercial airlines are seeking to prove out ATJ and move it towards commercialization. ATJ from Gevo’s isobutanol is a clean burning, homegrown, drop-in jet fuel, and we have a potential route to deliver aviation biofuels at scale and at competitive cost.”

The company says its patented ATJ fuel is truly a drop-in fuel, designed to be fully compliant with aviation fuel specifications and provide equal performance, including fit-for-purpose properties.

aviation biofuels, isobutanol

Argentina to Cut Biodiesel Taxes

John Davis

argentinaflagAs its biodiesel industry is battling the European Union over anti-dumping measures, Argentina is looking to cut taxes on biodiesel for domestic use. This article from Bloomberg says the government is proposing an exemption of a 22 percent tax on biodiesel used in thermoelectric plants and a 19 percent tax on biodiesel for gasoline blends until the dispute with the EU is resolved.

The EU slapped Argentina with duties on biodiesel imports last year, saying producers have access to raw material at prices that are kept artificially low. Argentina has requested the formation of a panel at the World Trade Organization in order to resolve the dispute and said the nation is being punished for being competitive in a free market, Fernandez said.

“We’re in the middle of a true trade war,” [President Cristina Fernandez de Kirchner] said during the speech. “We have to protect those who need our help.”

Argentina has about 33 biodiesel plants employing 1,600 people.

Biodiesel, International

Biodiesel to Help Drive Soybean Consumption

John Davis

d-goodBiodiesel looks to be one of the factors that will help consume the record amount of soybeans expected to be planted this year. This analysis from the University of Illinois’ Darrel Good says the expected 81.493 million acres of soybeans this year reflects a strong demand worldwide.

The USDA projects consumption of U.S soybeans and soybeans imported in to the U.S. during the current marketing year at 3.36 billion bushels, equal to the record consumption during the 2009-10 marketing year. Consumption is large in spite of continued high prices and back-to-back record production of soybeans in the rest of the world during the 2012-13 and 2013-14 marketing years. World consumption of soybeans during the current marketing year is projected at a record 9.884 billion bushels, 40 percent more than consumed 10 years ago. Much of the growth in world consumption has occurred in China, up 130 percent in 10 years. While it may not be reasonable to expect Chinese consumption to continue to grow at the pace of the past 10 years, there is no sign of a reversal in consumption. The U.S. should continue to have a large share of exports to China even with another large South American crop in 2015. Record high livestock prices and a likely increase in biodiesel production should keep domestic soybean consumption large as well.

But Good also points out that “intended” and actual “harvested” soybean numbers do vary every year.

Biodiesel, Soybeans

Forbes Flubs Ethanol Facts

Cindy Zimmerman

forbes_logoA Forbes article by a contributing editor proclaiming that “corn ethanol is of no use” contained such blatant fact errors that the author had to change it.

“Thanks to … commenters for pointing out some errors, especially my failing to mention the tax credits and tariffs have expired,” wrote author James Conca after removing that reference from the story.

Not changed is the manipulation of corn usage data in the story to avoid comparing apples to apples.

In 2000, over 90% of the U.S. corn crop went to feed people and livestock, many in undeveloped countries, with less than 5% used to produce ethanol. In 2013, however, 40% went to produce ethanol, 45% was used to feed livestock, and only 15% was used for food and beverage (AgMRC).

What those simple statements do not say is that:
1. Production in 2000 was 9.968 billion bushels, 40% less than the record 13.9 billion bushel crop harvested last year.
2. The 90% in 2000 included exports.
3. In 2013, 36% of corn usage went to “ethanol and by-products” which includes the equivalent of about one third of that amount returned as distillers grains for livestock feed.
4. Adding in exports, the total usage in 2013 outside of ethanol and by-products is 63%. If you add in about a third of the ethanol number (8.4% according to the source cited by Conca), that would be over 75% going to livestock feed, food uses, seed and exports.

Conca claims he is not “pro-oil” in one of his comment responses about the facts in the article, yet he states as a fact a statement that is blatantly false. “The grain required to fill a 25-gallon gas tank with ethanol can feed one person for a year, so the amount of corn used to make that 13 billion gallons of ethanol will not feed the almost 500 million people it was feeding in 2000.” Only livestock eat the field corn that produces ethanol and while exports of U.S. corn have declined some in recent years, global production continues to increase.

In response to a very well written comment pointing out some of the facts omitted from the article, Conca writes that he “did not know that China was importing so much Distillers Grain, that’s wonderful and does change the economics. And thank you for pointing out the taxes and tariffs have expired.”

He adds that he thinks the United States needs to “proceed full-steam on all fronts, including biofuels, and that all technologies should be supported thoroughly.” Unfortunately, articles like these perpetuating misinformation and flat out falsehoods make it difficult for biofuels to compete against detractors.

biofuels, Commentary, corn, Ethanol, Ethanol News

Book Review- Three Green Rats: An Eco Tale

Joanna Schroeder

Three Green Rats An Eco Tale book coverTru dat rat. Ok, so if you don’t have kids or hang out with kids, you may not have any idea what I just said. But the three green rat brothers of Tintown’s Broken Bottle Lane encourage us to walk softly and reduce, reuse and recycle in the children’s tale, “Three Green Rats: An Eco Tale“. Written by Linda Mason Hunter and illustrated by Suzanne Summersgill this rat tale is both fun and educational and the perfect book to review on Earth Day (April 22, 2014).

This wonderfully illustrated and highly clever book takes place in Tintown where the protagonist, Uppity Ethel Misrington, the richest rat in town, wants to build a big box store to sell stuff. Her itty, bitty niece Maybelline Burlingame Helena Stu discovers the green pastures and projects of the green brothers (Oliver, Wilbur and Tom, each with unique green skills) and becomes hooked on nature and green health. As a result, she starts to grow. When catastrophe strikes sickly Ethel, with the help of Maybelline and the green brothers, the day is saved and Ethel becomes a convert to living with less stuff and the city follows suit.

With the town saved, and the brothers heroes, shy brother Tom sums up the direction the town needs to take. “Look around, citizens. You are knee-deep in your own trash, held captive by technology, and so caught up in the rat race you don’t have time to think.”

“We are ruining our corner of Mother Earth, creating a place where no living being can thrive. We’ve cut down our tress, poisoned our air, and dumped sewage in our rivers and streams. Three Green Rats An Eco Tale book imageIt’s time to step back and ask ourselves, ‘Is this what we really want for our children?’ We must learn to live simply. We must walk softly upon Mother Earth and stop talking more than we need to survive.”

I luv it people! L-O-V-E it.

I highly recommend this book. Take some advice from the three green rats this Earth Day and learn to walk softly. This is a must read book for both children and adults to get you on the forward thinking path about how to reduce your impact and live more simply. In celebration of Earth Day, win an e-copy of Three Green Rats: An Eco tale. Email me your contact information with the subject line: Three Green Rats and the winner will be announced next week in the energy.agwired.com newsletter.

book reviews, Environment

Growth Energy Celebrates Earth Day

Joanna Schroeder

Today is Earth Day and people from all over the country are doing “green” things to celebrate Mother Earth. Growth Energy is taking today to discuss how the ethanol industry is committed earth_day_2014_wallpaperto improving the environment through the development of biofuels that reduce greenhouse gases.

“Our industry is committed to taking steps to mitigate harmful greenhouse gas emissions that have been shown to be a driving force in environmental damage,” said Tom Buis, CEO of Growth Energy. “That is why we are committed to producing clean, green, renewable and biodegradable fuels that are reducing our dependence on fossil fuels and are better for our environment.”

Buis notes that the benefits of using renewable fuels such as ethanol are tremendous.

For example, here are some facts about renewable fuels and the policy that promotes them: the Renewable Fuel Standard (RFS):

  • As a result of the RFS, ethanol is reducing greenhouse gases by an average of 34 percent compared to gasoline, according to the Argonne National Laboratory.
  • In fact, in 2013, the 13.2 billion gallons of ethanol blended into gasoline in the United States helped reduce greenhouse gas emissions from on-road vehicles by approximately 38 million metric tons, which is the equivalent of removing roughly 8 million automobiles from the road.
  • A main source of air pollution is automobile exhaust. A solution is to add oxygenates like ethanol to fuel. By increasing the amount of oxygen in the fuel, ethanol enhances engine combustion and reduces harmful tailpipe emissions of carbon monoxide, particulate matter, oxides of nitrogen and other ozone pollutants.
  • Just a 10 percent blend of ethanol in fuel reduces tailpipe fine particulate matter emissions by 50 percent, while also reducing secondary particulate matter formation by diluting the aromatics contained in gasoline. This blend also reduces carbon monoxide emissions by up to 30 percent.

“As you can see, homegrown American fuels are truly making a difference when it comes to improving our environment. That is why it is imperative on this Earth Day to impress upon lawmakers the importance of the RFS and ensure they continue to support this successful energy policy,” added Buis.  “We need to continue on the path of innovation, and the partnership between first and next generation clean burning, biodegradable, environmentally friendly fuels, and the RFS is doing just that. We have come so far. Now is the time to move forward, not backward.”

biofuels, Environment, Ethanol, Growth Energy