CHS Inc., a leading farmer-owned cooperative and a global energy, grains and foods company, said today it is investing an additional $20 million in 2014 to strengthen refined fuels supply dependability and flexibility for its customer network. The projects include the final phase of an ongoing replacement of the company’s refined fuels pipeline between Billings and Glendive, Mont., and a new pipeline connection at Council Bluffs, Iowa.- McPhy Energy, a company specialized in hydrogen-based solutions for the industry, mobility and renewable energy sector, has signed a decisive contract in the field of sea H2 mobility with one of the world’s largest shipbuilding groups, Italy-based Fincantieri. McPhy Energy, exclusive owner of a solid state hydrogen storage breakthrough technology, will perform a hydrogen storage design for vessels powered by hydrogen that will lead to the manufacturing of the first prototype.
- Comverge, Inc., has announced that its customer, Pepco Holdings Inc. (PHI) has won the 2014 POWERGRID International Project of the Year award for its direct load control program, Energy Wise Rewards. Recognized in the Demand Response/Energy Efficiency category, the award is based on the size and scope of the project, level of innovation used, and benefit to the utility, its customers, and the power industry as a whole.
- JA Solar Holdings has announced that the performance of the company’s solar modules in extreme environments has been certified by the China Quality Certification Center, China’s largest professional certification body. JA Solar is the first solar product manufacturer to receive this CQC accreditation.
How to Make BioGasoline From Plant Waste
A new process developed by researchers at the University of California, Davis (UC Davis) could better produce “biogasoline” from cellulosic materials. This new process of converting cellulosic materials such as farm and forestry waste, could open up new markets for plant-based fuels beyond existing diesel substitutes.
“What’s exciting is that there are lots of processes to make linear hydrocarbons, but until now nobody has been able to make branched hydrocarbons with volatility in the gasoline range,” said Mark Mascal, professor of chemistry at UC Davis and lead author on the paper published Jan. 29 in the journal Angewandte Chemie. UC Davis has filed provisional patents on the process.
Traditional diesel fuel is made up of long, straight chains of carbon atoms, while the molecules that make up gasoline are branched and shorter. That means gasoline and diesel evaporate at different temperatures and pressures, reflected in the different design of diesel and gasoline engines.
Biodiesel, refined from plant-based oils, is already commercially available to run modified diesel engines. A plant-based gasoline replacement would open up a much bigger market for renewable fuels.
The feedstock for the new process is levulinic acid, which can be produced by chemical processing of materials such as straw, corn stalks or even municipal green waste. It’s a cheap and practical starting point that can be produced from raw biomass with high yield, Mascal said.
“Essentially it could be any cellulosic material,” Mascal added. Because the process does not rely on fermentation, the cellulose does not have to be converted to sugars first.
Global Demand for Transportation Biofuels To Grow
According to a new report from Navigant Research, global demand for biofuels used for road transportation will grow from 32.4 billion gallons in 2013 to 51.1 billion gallons by 2022.
The report, “Biofuels for Transportation Markets,” analyzes the emerging markets and future growth opportunities for biofuels, including ethanol, biodiesel, and drop-in biofuels. The report provides an analysis of the major demand drivers and market challenges related 
to biofuels technologies. The report also examines the key technologies associated with biofuels, as well as the competitive landscape.
“Developed nations in Europe and North America are beginning to see declines in liquid fuels consumption from the road transportation sector, due to increased vehicle fuel efficiency and growing interest in alternative fuel vehicles,” said Scott Shepard, research analyst with Navigant Research.
“The continued growth of conventional biofuels relies either on policies increasing biofuel blend requirements, or on growing vehicle markets in the Asia Pacific region. Meanwhile, advances in biofuels derived from non-food feedstocks, and biofuels that require no changes to infrastructure or vehicles, promise to significantly alter the petroleum industry landscape,” added Shepard.
According to the report, petroleum consumption by the road transportation sector in the United States is expected to peak in 2016, according to the report, as biofuels grow to account for 8.7 percent of demand. Major stakeholders, including the airline industry and the U.S. Department of Defense, stand to benefit greatly from advances in drop-in biofuels and will continue to spur development of the technology, driving the price per gallon down to competitive levels.
50,000 Wind Advocates Call for PTC Extension
The Production Tax Credit (PT) that provides tax incentives for the wind energy industry expired on December 31, 2013. Although there has been talk of tax reform, that would include a new formula for clean energy tax incentives, more than 50,000 citizens are urging Senator Ron Wyden (D-OR) to making a renewing the PTC one of his biggest priorities. Sen. Wyden will be taking over as new chair of the Senate Finance Committee.
The petition was started by Iowa State Senator and Climate Parents member Rob Hogg and is set to be delivered to Sen. Wyden’s offices in Washington, D.C. and Oregon this week.
Last month, Sen. Wyden stated he was “not going to sit idly by while plans for renewable energy development are sacrificed on the altar of inaction.”
Supporters of the PTC point to the lobbying efforts of industry figures, such as the Koch brothers, as the explanation behind its initial expiration. According to a Huffington Post article, the Koch brothers have “enlisted their extensive network of think tanks, advocacy groups, and friends on Capitol Hill to spearhead a campaign to pull the plug on the PTC.”
According to Sen. Hogg, there is growing momentum across the country for an extension of the wind tax credit. An example of this momentum is unanimous approval of a resolution calling on Congress to extend the PTC by a bipartisan coalition of Iowa state senators. “We must support wind power and renewable energy,” said Hogg. “Our children and our grandchildren are counting on Congress to act.”
Hogg explains that despite oppositional efforts, the PTC still enables wind energy to compete with highly subsidized fossil fuel industries, attracts investors for new wind projects, fosters innovation and employs tens of thousands of Americans in the clean energy economy. “Wind power currently provides 25% of Iowa’s electricity generation and has increased nationally by 30% per year over the past five years. The wind power tax credit made this possible,” said Hogg.
Climate Parents Director and Co-Founder Lisa Hoyos said that the decision on whether to extend the wind PTC is a crucial test for Congress that will our children will grow up in. “We have the technology to shift to 100% clean energy. What we’re lacking is the political commitment from Congress to support the investments in renewable energy that will protect our kids’ from the climate impacts already harming communities. Senator Wyden’s leadership on this issue is critical right now.”
“When it comes down to it, Congress has a choice. Are they with the Koch brothers, or with our kids?” said Hoyos. “People across the country have joined this call to action, because we know future generations need us to rapidly deploy kid-safe, climate-safe energy, and stop investing in the dirty energy fueling climate change.”
DF Cast: Hearing in the Heartland Talks EPA & RFS
Unable to get the Environmental Protection Agency (EPA) to come to the heart of where biodiesel and ethanol are produced, leaders in the Midwest decided to hold their own “field hearing” to let the Obama Administration know they are unhappy with what proposed cuts to the Renewable Fuel Standard (RFS). The comment period for this proposal has recently ended, but now comes the possible months-long decision process by the EPA.
In this edition of the Domestic Fuel Cast, we listen in on some of what was said at Iowa Gov. Terry Branstad’s “Hearing in the Heartland,” a gathering of politicians, biodiesel and ethanol advocates, energy experts, and those who will be affected if this proposal to cut the amount of ethanol and biodiesel to be blended into the Nation’s fuel supply comes to fruition.
You can hear more of what was said during the hearing in the Heartland it in the latest Domestic Fuel Cast: Domestic Fuel Cast - Hearing in the Heartland
Distilers Grains Exports Record High in 2013
U.S. exports of the ethanol co-product distillers grains set a new record last year and exports of ethanol were lower but still strong.
According to the latest government statistics, exports of distillers dried grains with solubles (DDGS) totaled a record 9.7 million metric tons (mmt) last year, up 31% from 2012 and well above the previous record of 9.0 mmt set in 2010. China was the leading destination for U.S. distillers grains, taking 46% of the total, with Mexico and Canada a distant second and third.
U.S. exports of ethanol totaled 621.5 million gallons in 2013, down from the previous year but still the third-highest annual total on record. Canada was by far the leading export market for the year, receiving 52% of the total. The Philippines ranked second, followed by Brazil, the United Arab Emirates, and Mexico. Meanwhile, U.S. ethanol imports were down 27% from 2012, making the United States a net exporter of 226.3 mg in 2013, roughly a 24% increase over 2012 net exports.
“U.S. produced ethanol is the world’s lowest cost liquid transportation fuel. As such, we anticipate that export opportunities will continue to grow as countries across the globe recognize the air quality, high octane and superior performance of renewable ethanol,” said Bob Dinneen, President and CEO of the Renewable Fuels Association.
Both Farm Bill and RFS Important
Signing the new farm bill into law on Friday, President Obama commented that the legislation “supports businesses working to develop cutting edge biofuels” which have the “potential to create jobs and reduce our dependence on foreign oil.” The president also announced a new “Made in Rural America” export and investment initiative “to help more rural businesses expand and hire and sell more products.”
In response, Renewable Fuels Association (RFA) president Bob Dinneen noted the great economic benefit biofuels production has brought to rural America. “Under the Renewable Fuel Standard, the U.S. ethanol industry created and supported over 386,000 jobs in the past year,” said Dinneen. “To build on the success of the Farm Bill, we call on President Obama and the Environmental Protection Agency to protect the RFS and restore the 2014 conventional ethanol requirement to its statutory level.”
During a press call about the benefits of the farm bill for bioenergy, Matt Carr with the Biotechnology Industry Organization (BIO), also pointed out the importance of the RFS. “The Renewable Fuel Standard is really the fundamental policy foundation for the growth of the advanced biofuels industry,” said Carr, noting that BIO submitted comments to EPA regarding the proposal to lower the volume requirements under the law. “That proposal puts at serious risk the investment (our members) have made in advanced biofuels projects.”
“We like to say that the farm bill policy as well as the tax code work hand in hand with the RFS to help accelerate the adoption and deployment of advanced biofuels,” Carr added.
Farm Bill Biofuel Benefits
Just as President Obama was preparing to sign the Agricultural Act of 2014 into law today, the Biotechnology Industry Organization (BIO) held a media conference to highlight how expansion of the new farm bill’s energy programs to include renewable chemical technologies can help advanced biofuel producers.
“Renewable chemicals are now defined in the farm bill, an important and long overdue change,” said Matt Carr, BIO Industrial and Environmental Director about that inclusion in the Biorefinery Assistance Program and Biomass Research and Development Program, which had been primarily for advanced biofuel projects.
One of the participants in the call was Hugh Welsh, President of DSM North America, the Netherlands-based company that partnered with POET two years ago on cellulosic ethanol production. “We’ve made significant investments in the United States over the past three years,” said Welsh. “Some of that, in excess of $150 million, has been directly into the biofuels base and we’re encouraged by the inclusion of biochemicals in the farm bill.”
While DSM used its own funds for investment rather than taking advantage of the program, Welsh says it will help others. “We see the loan guarantee program now extended to biochemicals as something that offers greater opportunity for the development of this technology going forward,” in licensing the technology to others and “ultimately creating a true biorefinery.”
Welsh noted that the two technologies will work together. “We’re looking to grow both the advanced biofuels business and the biochemistry business,” he said.
Also participating in the call were Agriculture Energy Coalition co-director Lloyd Ritter, and Renmatix Senior VP Mark Schweiker.
Listen to or download the call here: BIO farm bill call
President Signs Farm Bill
President Barack Obama traveled to Michigan State University to sign the Agricultural Act of 2014 at the alma mater of Senate Agriculture Committee chair Debbie Stabenow (D-MI).
“Despite its name, the farm bill is not just about helping farmers,” President Obama told the small crowd invited for the signing. “Secretary Vilsack calls it a jobs bill, an innovation bill, an infrastructure bill, a research bill, a conservation bill. It’s like a Swiss Army knife.”
The president also gave a shout out to biofuels production in Michigan in his address prior to the bill signing. “I just got a tour of a facility where you’re working with local businesses to produce renewable fuels,” said Obama. “This bill supports businesses working to develop cutting edge biofuels, like some of the work being done here at Michigan State.”
Listen to the president’s speech here: President Obama farm bill signing
What do you think of the new farm bill? Which part is most important to you? Tell us in this week’s ZimmPoll.
DOE Awards $3M for Geothermal Development
The U.S. Department of Energy (DOE) has announced $3 million to spur geothermal energy development using play fairway analysis. This technique identifies prospective geothermal resources in areas with no obvious surface expression by mapping the most favorable intersections of heat, permeability, and fluid. The technique is commonly used in oil and gas exploration but has of yet, has not been widely used in the geothermal industry. By improving success rates for exploration drilling, this data-mapping tool could help attract investment in geothermal energy projects and significantly lower the costs of geothermal energy.
The U.S. Geological Survey estimates that 30 gigawatts of undiscovered hydrothermal energy potential exist untapped beneath the Earth’s surface – nearly 10 times the current installed capacity of geothermal energy in the United States. One of the keys to tapping this clean resource is reducing the cost and risk of locating it. Play fairway analysis projects could unlock significant geothermal energy resources and accelerate industry-wide adoption of this tool, by quantifying and reducing the risk of exploratory drilling,
The DOE will support one-year collaborative research and development projects, especially in new, unexplored areas, that adapt play fairway analysis to geothermal exploration. These projects selected will focus on using existing geologic and geophysical data to develop maps that identify areas with a higher probability of containing a geothermal resource. The research also seeks to develop a methodology for exploration of geothermal resources in a particular region, or play.