Driving Through the Blend Wall

Driving Through the Blend Wall

Cindy Zimmerman February 24, 2014

We’ve heard a lot about how higher ethanol blends might affect the producers of the green fuel and the impacts to consumers on the other end. But what about the viewpoint of those who have to build the vehicles on which these higher blends would run? Representatives from General Motors and Mercedes-Benz were among the experts on a panel at the National Ethanol Conference discussing “Driving Through the Blend Wall” from the automotive perspective.

Renewable Fuels Association vice president for technical services Kristy Moore moderated the panel which included Bill Woebkenberg, U.S. Fuels Technical and Regulatory Affairs, Mercedes-Benz Research & Development North America; Coleman Jones, Biofuels Manager, General Motors; and Robert McCormick, Fuels Performance Platform Leader, National Renewable Energy Laboratory.

Woebkenberg pointed out that flex fuels are already here and should be attractive to consumers, considering the high-performance, high-octane features.

“It’s not a filler fuel; it’s a race fuel,” and he believes overcoming consumers’ misperceptions of poor performance is key. But he and his colleague from GM, said carmakers are worried less about the rhetoric that might be swirling around flex fuels and more about what the final rules coming out of Washington might say.

“Automakers are a regulated industry, and we pay a lot more attention to the regulations than we pay attention to the words, because these regulations are the deeds by which we have to live with our business and have to be distinguished from the words we hear,” said Jones.

McCormick offered some insight to their review of 43 studies about ethanol, which should give the rulemakers more information by which those automakers have to live. He said overall they found no failures of E15 in performance.

“The use of E15, in our opinion, is likely to have little impact on 2001 and newer model year vehicles,” he told the audience gathered.

McCormick concluded the panel saying there are paths forward with the higher ethanol blends in the market, for carmakers and consumers alike.

Check out the entire session here: NEC Auto Perspective Panel

2014 National Ethanol Conference Photo Album

Audio, automotive, Car Makers, Ethanol, Ethanol News, National Ethanol Conference, RFA

BioEnergy Bytes

Joanna Schroeder February 24, 2014

Algae.Tec Ltd has announce that it has received its first purchase order from an affiliate of Reliance Industrial Investments and Holdings Limited (RIIHL) in connection with the arrangements announced on January 21, 2014. This purchase order is for $2.4 million and is for the supply of certain Algae.Tec algae production technology and associated technical expertise. The work and equipment ordered under this purchase order will be supplied and completed over approximately the next nine months.
SunEdison and MIC Solar Energy Holdings, a subsidiary of Macquarie Infrastructure Company LLC have announced the completion of a 16.4 megawatt photovoltaic (PV) solar power plant located outside Tucson, Arizona on Davis-Monthan Air Force Base (AFB). The plant is the largest solar energy facility at any U.S. Department of Defense installation and is expected to reduce the Air Force’s utility costs by $500,000 annually for the next 25 years.
The K2 Wind Power Project (K2 Wind) has begun hiring workers for the construction following a ruling by the Environmental Review Tribunal, which dismissed the appeal of K2’s Renewable Energy Approval. The 270 MW K2 wind power project will use 140 Ontario-made wind turbines. Over 1,000 workers from across southwestern Ontario will be involved in the manufacturing and assembly of the wind turbines, site construction and operations.
Greg Krissek has begun his duties as CEO of the Kansas Corn Growers Association, Kansas Corn Commission and Kansas Grain Sorghum Producers Association. Krissek has nearly 25 years of experience working with agriculture, ethanol, renewable energy projects and public policy. Krissek fills the position of Jere White, who announced his retirement on February 12. White had been the executive director of Kansas Corn and Kansas Sorghum since 1988.

Bioenergy Bytes

Patriot Out Front with Ethanol

Cindy Zimmerman February 24, 2014

Patriot Renewable Fuels wants to be the “poster child” for other ethanol plants when it comes to marketing higher blends in their own communities.

You might remember Darrell Rakestraw as the veteran we interviewed last fall about the EPA proposal to lower the Renewable Fuel Standard (RFS). When we spoke to him last week at his first National Ethanol Conference, Rakestraw was three months into his job as market development manager for Patriot. “I’ve learned a lot in three months,” he said. “The one thing I got out of (the conference) is that we have to help ourselves, we have to put the funds in to do the educational piece because no one else is going to do it.”

Listen to my interview with Darrell here: Interview with Darrell Rakestraw, Patriot Renewable Fuels

2014 National Ethanol Conference Photo Album

Audio, blends, Ethanol, Ethanol News, National Ethanol Conference, Patriot Renewable Fuels, RFA, RFS

EV Fast Charger Network Rolls Out in China

Joanna Schroeder February 24, 2014

ABB, a power and automation technology group, has announced a strategic collaboration with Shenzhen BYD Daimler New Technology Co., Ltd. (BDNT) to supply direct current fast chargers over the next six years for DENZA. The partnership is designed to help China become a global leader for electric vehicle (EV) fast charging. The wall-mounted chargers will have a number of innovations designed for user convenience and safety, such as a mobile app that allows remote monitoring and control of charging sessions, with the option of charging status change notifications.

First deliveries are expected in mid 2014. The charging solution will be sold through DENZA dealerships along with the vehicle. EVs are one of China’s seven emerging strategic industries. ABB and DENZA will work together to help support China’s efforts to increase sustainable mobility.

“We are honored to be a partner in this venture to move urban transportation forward in a more sustainable way. By combining car sales with fast chargers, DENZA is taking a bold step to address a key obstacle for potential buyers of EVs,” said Ulrich Spiesshofer, CEO of ABB Group. “ABB’s EV charging solutions have been expanding rapidly worldwide as the underlying technology combines our key strengths in power electronics, software, service and power distribution.”

The Chinese government has introduced a direct current (DC) fast charging “GBT” standard to encourage technical innovation and stimulate market acceptance of EVs. The urban charging infrastructure will be a key driver for EV adoption. The GBT standard will give Chinese consumers the opportunity to conveniently charge their vehicles at home or at public charging stations. Public DC fast charging is expected to be rolled out in China in the near future.

The fully electric DENZA car is designed for journeys of more than 200 kilometers and is among the first long-range EVs to go on sale in China. Market research shows that consumers value long-range EVs, but expect short charging times. DENZA will offer its customers the convenience of fast charging at home, at work or at public charging stations.

“The DENZA represents a significant step in sustainable transportation for the Chinese automotive market. It was vital that we had the right partner to support this innovative concept,” said Arno Roehringer, COO of BDNT. “ABB is the ideal technology partner for us, and – equally important – it has the service expertise to install this solution.”

China’s EV market is expected to quickly gain momentum in the coming years due to technology and market innovations, the GBT national fast-charging standard and favorable incentives. ABB has worked on pilot projects with local OEMs and utilities in China since 2010. In 2013, it began to build up a local EV organization to support this growth including R&D, manufacturing, logistics, and service.

Alternative Vehicles, Electric Vehicles

Army Awards Renewable Energy Contracts

Joanna Schroeder February 24, 2014

The U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville, working with the Army Energy Initiatives Task Force (EITF), has awarded another 20 base contracts to companies in energy-related technologies. The awards are part of the $7 billion capacity, large-scale renewable and alternative energy power production Multiple Award Task Order Contract (MATOC).

The 20 contracts are for the following technologies: solar (15), wind (3) and biomass (2). USACE has previously awarded 58 contracts for solar (22), wind (17), biomass (13), and geothermal (6).

“We are adding these additional companies to those already in the technology pools to ensure we have enough pre-qualified companies ready to submit proposals on task orders as they come up,” explained Col. Robert Ruch, commander, Huntsville Center. “Huntsville Center is doing everything we can to ensure task orders for future projects will be awarded as quickly as possible.”

This second round of MATOC awards is in keeping with the original August 2012 Request For Proposal (RFP) which allowed for immediate awards to firms within the competitive range and additional awards to firms that qualified after further evaluation by the government. The qualified MATOC companies will be eligible to bid on future renewable energy task orders. As renewable energy opportunities at Army installations are assessed and validated, Huntsville Center will issue a competitive task order Request for Proposal to the pre-qualified MATOC companies for the specific technologies.

The MATOC involves third-party financed renewable energy acquisitions and involves no Army or Department of Defense (DOD) capital, or Military Construction appropriation. The Army or DOD will purchase the power from contractors who own, operate and maintain the generating assets. The MATOC’s total estimated value of $7 billion capacity refers to the total dollar value of energy available for purchase under all Power Purchase Agreement task orders for their entire term (up to 30 years).

These contracts will support the Army’s achievement of its congressionally mandated energy goal of 25 percent production of energy (1GW) from renewable sources by 2025, and improving installation energy security and sustainability.

biomass, military, Renewable Energy, Solar, Wind

Biodiesel By-product Could Help with Better Soils

John Davis February 24, 2014

The quality of soils to grow the very feedstocks to make biodiesel could be helped by a by-product of that green fuel’s production. This article from Farmers Weekly says Rothamsted Research in the United Kingdom found that applying biodiesel co-product (BCP) increased soil micro-organism numbers and this effectively “locked up” the nitrates in the soil until spring.

Researchers looked at three treatments to try and cut leaching, which included incorporating straw, growing meadowgrass and applying BCP in simulated field conditions.

“We found that BCP was the most effective soil amendment, rapidly increasing the abundance of soil micro-organisms and preventing more than 99% of nitrate leaching,” says Rothamsted researcher Marc Redmile-Gordon.

He adds that cutting nitrate losses from farmland would help protect the environment, especially watercourses, and could lead to lower nitrogen fertiliser rates.

The “very encouraging” results came in field trials conducted in the 2012-13 season when heavy nitrate leaching would have been expected after a wet harvest followed by an equally wet autumn.

The BCP treatment helps stimulate soil microbe numbers by giving them an energy source and then they suck up nitrate nutrients from the soil to feed this growth, says Dr Redmile-Gordon.

The nitrates are unlocked in the spring as soil microbe levels are reduced by warmer drier weather. The process mimics the use of cover crops over winter in mopping up nitrates in the autumn and then slowly releasing them in the spring.

The researchers believe this method could cut nitrogen fertilizer usage by about 10 percent. They do point out that it might require changing application methods.

Biodiesel, Research

State Level Blend Walls Update

Cindy Zimmerman February 24, 2014

The phrase “all politics is local” seems like it sure could apply to some of the decisions to overcome the ethanol blend wall. Challenges to increasing ethanol in the marketplace exist on the state level as well as the federal level, and participants at the National Ethanol Conference learned more about efforts to break down the blend wall in various states, including Tennessee, where Randy Jennings is Director of Program Operations for the state Department of Agriculture Division of Consumer & Industry Services.

“Definitely, the walls are falling,” is how Jennings described the results so far of their efforts, along with the Renewable Fuels Association (RFA), to increase the amount of ethanol to be blended into gasoline in his state.

He said they brought together various Tennessee state agencies, such as the state’s Department of Environment and Conservation (the regulator of fuel storage tanks), Commerce and Insurance, and Department of Labor and Workforce Development, as well as stakeholding industries in Tennessee. They are proposing some key changes in current rules to also be proposed at this summer’s National Conference on Weights and Measures (NCWM). Those changes include: an Environmental Protection Agency (EPA) waiver for up to 15 percent ethanol, redefining E85 and how it is marketed, and proposing yellow grip guards at the pump just for flex-fuels, among other proposed changes. Jennings hopes that there will be more fuel choices for consumers, while working with the industry.

“We remain committed to working with all stakeholders in a fair, consistent manner.”

Hear more of his remarks here: Comments from Randy Jennings, Tennessee Department of Agriculture

Meanwhile, RFA Vice President for Technical Services Kristy Moore outlined some of the challenges they face on the state level, including EPA’s restrictions during the summer volatility season.

“[For example in the Kansas City, Kansas area], gasoline in the summer must [meet EPA’s capped requirements]. Gasoline in that area blended with 9-10 percent ethanol is allowed an 8 PSI requirement. But gasoline with 15 percent ethanol, has to meet the more restrictive [requirement],” she explained. And then in the rest of the state of Kansas, there are other requirements for E10 and E15 and above blends.

Moore said they have needed to work state-by-state, making sure they were not crossing laws already on the books and trying to get legislatures to make changes so there could be an increase in blends and more uniform blending rules across the country. She believes they’ve helped eliminate impediments in many states.

“We’ve really have had some major success, major education, and a lot of good partnerships in these state regulators to understand what E15 fuels can do, what blender pumps can do, what E85 can do for their marketplace and their fuel markets.”

Listen to more of here remarks here: Comments from Kristy Moore, RFA

2014 National Ethanol Conference Photo Album

Audio, blends, E15, E85, Ethanol, Ethanol News, National Ethanol Conference, RFA, RFS

Ethanol Exports Important to Industry

Cindy Zimmerman February 24, 2014

Exports of both ethanol and the animal feed co-product distillers dried grains (DDGs) are important for Patriot Renewable Fuels, located near the Quad Cities and not far from Chicago.

Patriot commodity manager Judd Hulting attended a trade mission with the U.S. Department of Commerce and the Renewable Fuels Association (RFA) to Brazil last fall. “It’s just another outlet for our 200 or so investors,” he says. “We are actually close to 100% dependent on the export market for our distillers grains so branching out both in the ethanol and the DDG market is very important for our profitability going ahead.” Interview with Judd Hulting, Patriot Renewable Fuels

RFA General Counsel Ed Hubbard led that mission to Brazil last fall and talked about it during a panel at the National Ethanol Conference on Expanding the Global Marketplace for U.S. Ethanol.

“We had a very successful mission opening new business for individuals that participated,” said Hubbard. “We are the global leader in ethanol production, producing 57% of the world’s output.”

Hubbard noted that U.S. ethanol exports surged to 82.4 million gallons in November, with large volumes finding their way into new or emerging markets such as China and India, as well as the Philippines, Tunisia, Panama, and Mexico. Ethanol exports totaled 621.5 million gallons in 2013, the third-highest annual total on record. Comments from RFA General Counsel Ed Hubbard

Also on the export panel were:

Eco-Energy CEO Chad Martin – Comments from Chad Martin, Eco-Energy DATAGRO Consulting president Plinio Nastari – Comments from Plinio Nastari, DATAGRO U.S. Department of Commerce trade specialist Cora Dickson – Comments from Cora Dickson, US Commerce Dept.

2014 National Ethanol Conference Photo Album

Audio, Ethanol News, Exports, National Ethanol Conference, Patriot Renewable Fuels, RFA, RFS

NEC Global Ethanol Conversation

Cindy Zimmerman February 23, 2014

It is always interesting to hear the perspectives of different countries during the National Ethanol Conference global panel and to see the similarities as well as differences in viewpoint.

The panel was moderated by Bliss Baker, Global Renewable Fuels Alliance, and included Renewable Fuels Association president Bob Dinneen, as well as (from left to right): Joel Velasco, Senior Advisor to Board of UNICA; Scott Thurlow, President, Canadian Renewable Fuels Association; Jayant Godbole, President and Director PRAJ Americas, Inc.; and Robert Vierhout, Secretary-General, ePURE

A few years ago, it was Brazil and the United States sparring with each other over ethanol trade and tariffs, but now it is the Europeans who are challenging the U.S. ethanol industry in the export arena.

“The real loser in the EU’s nonsensical action is the European consumer, who is being denied access to low cost high performance renewable fuels,” Dinneen said in his state of the industry address. Vierhout challenged that assertion on the panel. “Bob, please wake up,” said Vierhout. “If you would export your ethanol to Europe, who’s going to gain? Not the consumer, it’s the oil companies.”

Even Brazil and Canada fired back at Vierhout over Europe’s policy. “I’ll summarize for Rob,” said Velasco. “He’s never met a gallon, or a liter, or hectoliter, of ethanol imports that he likes.”

Thurlow questioned how this would play in the current European-U.S. trade negotiations. “I don’t see how your position can be tenable, Rob, if you are going to have a dispute resolution mechanism that will basically make it impossible for these types of ‘snap-back tariffs’ to be put on,” he said. To which Vierhout replied, “There’s still a possibility (the trade agreement) will exclude ethanol.”

Listen to the conversation here and watch the European exchange on video below: Growing Global Ethanol Industry Panel Discussion

2014 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, Exports, International, National Ethanol Conference, RFA, Video

Students Interested in Ethanol

Cindy Zimmerman February 23, 2014

The 2014 National Ethanol Conference scholarship winners are three totally different young men who all share the common interest of ethanol.

Gavin Kenney is a farm boy from Nebraska who is about to graduate from the University of Nebraska with a major in agricultural economics and minors in agronomy and entrepreneurship. He grew up around the ethanol industry and is the brother of a previous scholarship recipient. Tyler will be going to work for Producers Hybrids when he graduates in May. “A conference like this gives me a good opportunity to network and talk to people,” he said. Gavin is pictured here with Renewable Fuels Association president and CEO Bob Dinneen. Interview with student Gavin Kenney

Aaron Walsh, pictured here with EPA official Chris Grundler, gained industry attention when he drove all the way from Michigan on his own dime to testify at the EPA hearing in December on the RFS proposal. A self-described “activist” who is devoted to using E85 in his flex fuel vehicle, even when it is inconvenient, Aaron got a job at a local ethanol plant as a result of that testimony. “Both my fuel and my car are made less than a hour from where I live,” he says proudly. Interview with student Aaron Walsh

Tyler Machado was born in Mexico, grew up in North Carolina and is currently attending San Francisco State University studying Environmental Studies and Spanish. His interest in renewable fuels began when he converted a 1981 Mercedes 300D to run on vegetable oil and he plans to travel to South America this summer to learn about renewable fuel projects and sustainable energy methods. Interview with student Tyler Machado

This is the fifth consecutive year Renewable Fuels Foundation has funded the scholarship to attend the NEC has been available to students in higher education with a focus on renewable fuels and intending to pursue a career in the industry.

2014 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, National Ethanol Conference, RFA

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