Ethanol Report on New Economic Study

Cindy Zimmerman February 21, 2014

At the 19th annual National Ethanol Conference in Orlando, the Renewable Fuels Association unveiled a new study by ABF Economics entitled “Contribution of the Ethanol Industry to the Economy of the United States.”

The author of that study was John Urbanchuk, who is the go-to economist for the biofuels industry – but he was unable to be at the conference so we caught up with him by phone for this edition of “The Ethanol Report.” Ethanol Report with economist John Urbanchuk on new ethanol economic study

Subscribe to “The Ethanol Report” with this link.

2014 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

BioEnergy Bytes

Joanna Schroeder February 21, 2014

Renewable Energy Group (REG) has hired Todd Robinson as Director, Investor Relations. Robinson has spent more than 20 years in banking, investment, finance and treasury operations at companies including Wells Fargo, Deloitte & Touche, Pioneer Hi-Bred International, Pella Corporation, and HSBC Securities (USA), Inc. He will work with REG senior management and with the company’s investor relations firm, ICR, to enhance REG’s availability to the investment community.
Leading figures in geothermal power development will be participating in the GEA International Geothermal Showcase in Washington, D.C. on Earth Day, April 22. This includes speakers engaged in projects in Kenya, Tanzania, Switzerland, Romania, Turkey, Italy, Japan, Indonesia, Guatemala, El Salvador, Nevis, Colombia, the United States, Iceland and more. In addition to examining geothermal power projects around the world, panels will present leading market analysis discussing the state of the geothermal sector, a top level expert discussion of geothermal project risk reduction, and presentations from leading financial institutions including the World Bank, the Export-Import Bank of the U.S., and the Overseas Private Investment Corporation.
Ferrostaal Industrial Projects GmbH, a project developer facilitating worldwide investments, is taking a majority stake in the ‘Sainshand’ wind farm project in Mongolia. With 190 GWh of electricity every year, ‘Sainshand’ will be the largest wind park in Mongolia. The investment in the project amounts to approximately 120 million US dollars and is intended to connect to the grid as early as the end of 2015.
Green Charge Networks has announced the launch of a new white paper, The Next Energy Frontier: Power Efficiency. The white paper addresses the rising electricity cost facing America’s businesses. The paper also examines the state of energy efficiency initiatives and what will be the next frontier in savings – Power Efficiency.

Bioenergy Bytes

RFA Ethanol Industry Outlook and Pocket Guide

Cindy Zimmerman February 21, 2014

Every registration packet at the National Ethanol Conference included two new publications from the Renewable Fuels Association – the annual 2014 Ethanol Industry Outlook and 2014 Pocket Guide to Ethanol.

The publications offer both a comprehensive look at the ethanol industry today and a succinct industry overview in a pocket-sized package. They include information about the Renewable Fuel Standard (RFS), next generation biofuels, expansion of higher level ethanol blends, the global marketplace, food vs. fuel, and an updated map of biorefineries across America.

If you would like to get copies of the publications contact RFA’s Chris Findlay at 202-289-3835 or cfindlay@ethanolrfa.org – and both are available on line.

2014 Ethanol Industry Outlook
2014 Pocket Guide to Ethanol

2014 National Ethanol Conference Photo Album

Ethanol, Ethanol News, National Ethanol Conference, RFA, RFS

West Coast Offshore Wind Project Moves Ahead

Joanna Schroeder February 21, 2014

The first offshore wind project proposed for federal waters off the West Coast has just taken a big step forward. Secretary of the Interior Sally Jewell joined by Governor John Kitzhaber and Bureau of Ocean Energy Management (BOEM) Director Tommy P. Beaudreau, announced that BOEM has given the green light for Principle Power, Inc. to submit a formal plan to build a 30 megawatt offshore wind pilot project using floating wind off the coast of Coos Bay, Oregon.

“Today’s announcement is consistent with President Obama’s commitment to take actions that will create jobs and develop clean, domestic energy that powers our economy,” said Jewell. “This pioneering project would demonstrate floating wind turbine technology capable of tapping the rich wind energy resources in deep waters offshore Oregon. As we look to broaden our nation’s energy portfolio, the innovative technology and its future application hold great promise along the West Coast and Hawaii.”

According to the National Renewable Energy Laboratory, the West Coast holds an offshore wind capability of more than 800 gigwatts of wind energy potential. This is equal to more than three quarters of the country’s entire power generation capacity. In addition, total U.S. deepwater wind energy resource potential is estimated to be nearly 2,000 gigawatts.

“Today marks a milestone in ocean renewable energy, and also the next big leap for cutting-edge innovation necessary to meet our energy and carbon reduction goals,” said Governor Kitzhaber. “These critical partnerships with our federal, regional, tribal, and local partners are advancing an energy future that supports a healthy economy and good jobs while strengthening Oregon’s legacy of environmental stewardship.”

BOEM has issued two non-competitive leases (Cape Wind in Nantucket Sound and an area off Delaware) and three competitive leases (two offshore Massachusetts-Rhode Island and another offshore Virginia). The competitive lease sales generated about $5.4 million in high bids for about 277,550 acres on the U.S. Outer Continental Shelf. Additional competitive auctions for wind energy areas offshore Maryland, New Jersey and Massachusetts are expected in 2014.

offshore wind, Renewable Energy

Analysis: RINs Price Drop Indicate EPA Reversal

John Davis February 21, 2014

A drop in prices for biodiesel and ethanol Renewable Identification Numbers (RINs) could indicate that the government’s proposal to cut the amount of the green fuels to be blended into America’s fuel supply will be reversed. In an analysis by University of Illinois agricultural marketing expert Scott Irwin, lower RINs suggest the market believes odds are the Environmental Protection Agency (EPA) will end up opposing its proposal.

Since late January 2014 D6 prices have once again risen rapidly relative to D4 prices. The price of a D4 and a D6 with 2014 vintages stood at $0.46 and $0.34, respectively, on January 27, 2014, little changed since early December 2013. Six trading days later on February 5 the price of a D4 and D6 had risen to $0.55 and $0.50, respectively. In other words, the price of D6 RINs increased by about 50 percent over a span of just six days! Obviously, something dramatic must have happened to change the market’s perception of the value of D6 RINs relative to D4 RINs. The conceptual model presented in Figure 1 strongly suggests that RINs market traders were convinced there is a much higher chance that the EPA will reverse the write down of the 2014 renewable mandate in final rulemaking, expected to be released in late spring or early summer.

Implications

Once again, the RINs market may be providing an early warning signal about a change in EPA policy. The recent rise of D6 ethanol prices relative to D4 biodiesel prices indicates that RINs traders believe the odds of the EPA reversing the proposed write down of the renewable mandate for 2014 in final rulemaking have increased sharply.

Another good indicator of a possible reversal are the words of Administrator of the EPA, Gina McCarthy herself, who recently told the meeting of the National Association of State Departments of Agriculture, “I have heard loud and clear that you don’t think we hit that right…[the final rule will be] in a shape that you will see that we have listened to your comments.”

Biodiesel, EPA, Ethanol, RFS, RINS

19th National Ethanol Conference is a Wrap

Cindy Zimmerman February 20, 2014

The 19th annual National Ethanol Conference was one of the best ever, with strong attendance and a program that rocked.

Personally, Renewable Fuels Association (RFA) president and CEO Bob Dinneen thought the Led Zeppelin 2 concert for the networking reception was the highlight of the conference, but there were lots of other great acts.

“It was a substantive agenda and from start to finish there were really good conversations about issues of real importance,” Dinneen said at the conclusion of the event on Wednesday. “I’m really happy with the content, but just the mood around the room was really phenomenal.”

An address by the EPA official in charge of making the proposed changes in the volume obligations under the Renewable Fuel Standard (RFS) was definitely another highlight of the conference. “He truly is just trying to do the right thing,” Dinneen said about Chris Grundler, EPA Director of the Office of Transportation and Air Quality. “I think the world of him. I may not agree with everything he says or does but I know that he’s doing it sincerely.”

Something new at the NEC this year was the membership PAC auction that was held to support the RFA Political Action Committee which started just last year. “We hadn’t had one up until that point,” said Dinneen, who gave a lot of credit to auctioneer Todd Barlow of Kentucky for helping to raise a good amount of dollars for a good cause. “It really is challenging to raise money in this fashion but it was a lot of fun and we’re going to continue to grow this event.”

Among the more entertaining acts of the conference were the traditional Washington Insiders panel and the global ethanol panel. Attendance was more than 1100 at the event in Orlando, more than the past two years, and they are the “right people, people that are truly invested, truly committed, truly looking to build a future for their companies and their communities as well,” said Dinneen.

The RFA’s marching orders in 2014 are simple – Protect the RFS and tell the government #KeepYourWord. Next year the 20th anniversary National Ethanol Conference will be held in Dallas. Interview with Bob Dinneen, RFA at close of NEC14

2014 National Ethanol Conference Photo Album

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

Iowa E85 Sales Set Record in 2013

Joanna Schroeder February 20, 2014

Iowans have purchased a record number of gallons of E85 (85 percent ethanol, 15 percent gas) in 2013. According to the Iowa Renewable Fuels Association (IRFA), total E85 sales in 2013 reached 10,854,117 gallons, up nearly 20 percent from 2012 and an increase of more than 130,000 gallons from the previous record in 2011. The sales figures were reported by the Iowa Department of Revenue. E85 sales in Iowa finished strong in 2013 setting a fourth quarter record at 2,784,326 gallons, up more than 67 percent from fourth quarter 2012 and an increase of more than 700,000 gallons from the previous fourth quarter record in 2010.

To learn more about Iowans choice of ethanol blends, I spoke this afternoon with Grant Menke, policy director for IRFA. My first question: how much more can we do with E85 and higher blends of ethanol in Iowa. “We can do a whole lot more,” answered Menke. Iowa is a 1.5 billion to 1.6 billion gallon gasoline market and the state is at 11 million gallons for E85. “So there is clearly a lot of growth that needs to take place there. With a strong growing RFS (Renewable Fuel Standard) we really think this can happen.”

Menke noted that consumers who purchased E85 last year did so at very competitive prices. He said he remembers buying E85 during the third quarter at $1.10 per gallon less than a gallon of E10. He said ethanol is a homegrown fuel, good for the economy, good for farmers, and good for the environment. It’s a win-win-win. “If we can continue to price this fuel well, which the RFS allows us to do, we’re going to continue to break records in the future,” stressed Menke.

I asked Menke why it was so important to not only keep the RFS in tact, but moving forward. He noted that the Environmental Protection Agency (EPA) comment period for the 2014 RFS has been completed and the ball is now in the EPA and White House’s court. They have heard from tens of thousands of RFA supporters as to why a reduction in the RFS would be devastating to this industry: first generation, biodiesel and cellulosic ethanol. “If we want to continue to diversify our fuel supply with cleaner, homegrown, renewable fuels, we need a strong growing RFS,” added Menke.

IRFA aids retailers who want to offer consumers more choices at the pump, and noted that retailers who diversify their fuel offering (biodiesel, higher blends of ethanol) can have financial success in this space. Menke said they are hoping to break records in 2014.

Listen to my interview with Grant Menke here: Iowa E85 Sales Set Record in 2013

Audio, biofuels, E85, Ethanol, Iowa RFA

BioEnergy Bytes

Joanna Schroeder February 20, 2014

According to the Latin America Wind Market Assessment, from Navigant Research, cumulative installed wind power capacity in Brazil will reach 20.1 GW by 2022, more than all the other nations of Latin American combined. The report finds that Latin America has become one of the hottest growth markets for the wind energy industry. Wind power development in Brazil, in particular, is growing rapidly and will provide the bulk of Latin America’s wind market in the coming years. By 2016, Brazil could see yearly installations top 1.5 gigawatts (GW) as the pipeline of contracted projects comes online and transmission is constructed to connect the plants.
ReneSola Ltd. has announced it is supplying 13MW of its high-efficiency Virtus and Virtus II polycrystalline solar modules to Low Carbon, a UK-based investor in renewable energy developers and projects. The modules will power a ground-mounted project on 63.5 acres of land in Wiltshire, England. ReneSola will ship the modules from its warehouse locations in Poland and India to the new solar park in Wiltshire. The new solar park will generate enough clean energy to power more than 3,800 homes per year, based on estimates by the UK energy regulator Ofgem.
Orion Energy Systems has been awarded the 2013 TVA EnergyRight Solutions Award for most kilowatts saved in the Middle Tennessee District. The EnergyRight Program is an energy efficiency initiative offered by the Tennessee Valley Authority to promote the wise and efficient use of electricity.
FuelCell Energy, Inc. has announced that the world’s largest fuel cell park in South Korea, the Gyeonggi Green Energy fuel cell park, located in Hwasung City, South Korea, is fully operational. The largest fuel cell park in the world, the facility consists of 21 FuelCell Energy DFC3000(R) power plants, rated at 2.8 megawatts each, requiring only about 5.1 acres of land for 59 megawatts of new and renewable power. The fuel cell park provides continuous baseload electricity to the South Korean electric grid and usable high quality heat for a district heating system.

Bioenergy Bytes

American Ethanol Expands Program

Joanna Schroeder February 20, 2014

Ethanol Association Growth Energy is expanding their partnership of Richard Childress Racing and Austin Dillion for the 2014 NASCAR season as part of their American Ethanol program. Beginning with the NASCAR Sprint Cup Series race at Phoenix International Raceway on March 2, Dillon will race the No. 3 American Ethanol Chevrolet SS in select races during the 2014 season.

“American Ethanol is extremely pleased to once again partner with Austin Dillon, Richard Childress and the entire RCR team to help promote a sustainable homegrown American fuel that is better for our environment, reduces our dependence on foreign oil and creates jobs right here in the U.S., while revitalizing rural economies across America and saving consumers at the pump,” said Tom Buis, CEO of Growth Energy.

American Ethanol, launched by Growth Energy and the National Corn Growers Association along with the support of other partners, is a program that seeks to expand consumer awareness of the benefits of ethanol and E15. Since the program launch for the 2011 season, NASCAR drivers have run more than 5 million miles on renewable Sunoco Green E15.

“We want to show the people coast-to-coast there is a great alternative to imported oil and our association with NASCAR and RCR is doing that extremely well,” said Jon Holzfaster, a Paxton, NE farmer and chairman of the National Corn Growers Association’s NASCAR Advisory Committee. “Ethanol is also responsible for bringing a rural renaissance from Main Street to the family farm.”

American Ethanol will also serve as a major associate sponsor for Dillon’s No. 3 Chevrolet for the full 2014 NASCAR Sprint Cup Series season joining Dow, Cheerios, Realtree Outdoors, Bass Pro Shops and the University of Northwestern Ohio.

“Homegrown biofuels like American Ethanol have stepped up to help our nation’s economy,” said Dillon. “NASCAR drivers have run more than 5 million competitive miles on Sunoco Green E15 and I know we will reach even more milestones together. I am proud to wear the American Ethanol colors in NASCAR and I hope I can bring them to Victory Lane in the NASCAR Sprint Cup Series in 2014.”

American Ethanol, E15, Ethanol, Growth Energy, NCGA

California Geothermal Potential Largely Untapped

Joanna Schroeder February 20, 2014

The Geothermal Energy Association (GEA) has released a new report to coincide with the California Air Resources Board’s (CARB) development of a scoping plan for implementing their climate law AB 32. The report finds that California’s geothermal resources are remain largely untapped.

Geothermal power is “a viable, cost effective, and plentiful renewable energy option to meet California’s climate goals,” GEA told CARB. Utilizing the Golden State’s geothermal resources can help achieve “carbon reductions with the least total cost and highest power system reliability,” GEA reports.

In brief, the status report, Report on the State of Geothermal Energy in California, shows that:

Geothermal power generated 4.4% of total system power in California in 2012, but could have generated substantially more.
Geothermal power produces some of the lowest life-cycle emissions when compared to almost every other energy technology and even some renewables.
Depending on the resource characteristics and plant design, geothermal power plants can be engineered to provide firm and/or flexible power.
Even with high upfront capital costs, geothermal power is a competitive renewable energy source.
About half of California’s identified geothermal resources are still untapped, and significant resources may remain undiscovered.
Geothermal power is key to achieving an expanded renewable power portfolio at the lowest total cost.
New technology will reduce geothermal power risks and can expand the supply curve to make more resources commercially available.
The Salton Sea Known Geothermal Resource Area (SSKGRA) is considered by many to be the best opportunity for growth in California in the near term.
Distributed generation geothermal power and heating projects have potential in a number of areas, but are not eligible for the type of support provided other distributed generation projects.
Challenges to growth of utility scale plants include weak demand, inadequate transmission, permitting delays, and a lack of coordinated policies.

Alternative energy, Geothermal, Research

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