Biodiesel Record Prompts Call to Reverse RFS Cuts

John Davis

biodiesellogo1American biodiesel producers set a record with nearly 1.8 billion gallons produced in 2013. While the record is nice, it’s also a cruel, ironic reminder that the same government office reporting this milestone, the Environmental Protection Agency (EPA), is also trying to lower the amount of biodiesel to be mixed into the Nation’s fuel supply down to just 1.28 billion gallons in 2014. The National Biodiesel Board is calling on the Obama Administration to change direction on this policy that will hurt the industry just as biodiesel is celebrating its greatest success.

“The success of the biodiesel industry in 2013 proves that the RFS is working today and stimulating the commercial-scale production of advanced biofuel,” said Joe Jobe, CEO of the National Biodiesel Board (NBB), the U.S. trade association. “It also makes it incredibly frustrating that the Obama Administration is backing away from this progress with its recent RFS proposal.”

“If our industry produced 1.8 billion gallons of Advanced Biofuel in 2013, why is the Administration retreating to 1.28 billion gallons for 2014?” Jobe asked. “We’re proving it can be done. What we need is consistent policy, and that is sorely lacking in Washington right now.”

“It is incomprehensible that an Administration that has unequivocally supported renewable fuels since Day One has suddenly decided to retreat on the first Advanced Biofuel to reach commercial-scale production nationwide,” Jobe said. “It threatens biodiesel businesses across the country and thousands of jobs, and it undercuts the Administration’s stated priority of reducing greenhouse gas emissions.”

NBB officials go on to point out that with some excess 2013 biodiesel production “carried over” into 2014, the real Renewable Fuel Standard (RFS) number for biodiesel will be about 1 billion gallons, about half of what is now produced. Throw in a lapsed $1-a-gallon federal biodiesel credit, and the more than 62,000 biodiesel industry jobs in this country could be in big trouble this year.

Biodiesel, EPA, NBB, RFS

Farm Bill Compromise Includes $881 Mil for Energy

John Davis

us-capitol-fiscal-cliff-voteA compromise Farm Bill agreed upon by U.S. Senate and House negotiators will set aside about $881 million in its Energy Title portion. The deal on the $500 billion Agricultural Act of 2014 gained praise from the Agriculture Energy Coalition (AgEC), a consortium of organizations and companies representing a broad spectrum of renewable energy, energy efficiency and bioproducts stakeholders.

Lloyd Ritter, co-director of the AgEC, said, “Today’s conference report will continue the Farm Bill’s support for economic growth and development in rural America. Renewable energy and energy efficiency programs support new manufacturing and stable, well-paying jobs. Expansion of the programs will enable renewable chemical technologies to create new manufacturing opportunities and jobs. These very modest investments make major energy security, economic, and environmental benefits happen across the entire United States.

“The programs help grow the rural economy by opening access to critical project capital, ensuring that investments continue to be made in agriculture energy development.”

Some of the benefactors from this legislation include the Biomass Crop Assistance Program, partnering with hundreds of farmers across the country to develop sustainable new biofuels; the Biorefinery Assistance Program, supporting advanced biofuels by assisting U.S. companies secure more than $450 million in private capital for innovative advanced biofuel projects; and the Renewable Energy for America Program (REAP) that helps support renewable energy jobs in rural parts of the country.

The bill must still pass the full House and Senate, but the bipartisan compromise is seen as very positive step toward full passage.

farm bill, Government, Legislation

Algae Biodiesel Fuel From Utah State

Jamie Johansen

nbb-14-rhesa-ledbetterRhesa Ledbetter from Utah State University was one of the students who attended the 2014 National Biodiesel Conference. Chuck caught up with her for an interview and she explains her research in algae biodiesel fuel.

Rhesa finished her master’s in micro-biology and then decided she wanted to do a project that was really applied. To her biodiesel products seemed to make a lot of sense and something that would work well with her background.

“Our group at Utah State is focusing on biodiesel produced from algae. We have characterized a lot of properties and we also have a diesel streamliner we have been able to run out on the salt flats. It’s been great for me to be able to learn so much about a topic that I wasn’t really familiar with. Being able to interface with all these experts has been invaluable. I think collaborations will develop from this event will end up enhancing our research.”

In the future Rhesa and her team look to continue seeking more efficient ways to produce the fuel and promoting all the great traits biodiesel has.

Earlier this year Joanna did a post on the Aggie A-Salt Streamliner Rhesa mentioned. You can find that post here.

2014 National Biodiesel Conference Photo Album

algae, Biodiesel, Biodiesel Conference, Education, Video

Gas Hole’s Impact on the Industry

Jamie Johansen

nbb-14-gasholeWhen Jeremy Wagner and Scott Roberts made the movie Gas Hole a couple of years ago, they had no idea the impact it would have. During the recent 2014 National Biodiesel Conference & Expo the co-directors/producers presented to attendees, showed an extended excerpt from the movie and did a little Q & A.

Chuck caught up with the team and they shared how they decided a film about the oil industry was their goal and what research it took to accomplish such an endeavor.

Scott said the idea come to them “when the gas prices hit an all-time high. At the time I think it was only $3.25, it was unheard of at the time. We saw an article in a newspaper written by a gentlemen who remembered seeing a vehicle back in the 50’s that he was told got a 100 mph. What happened to that technology and why aren’t we using it?”

They knew they wanted to do a documentary together, but hadn’t decided on a topic. After this discovery they hunted down the man from the article and the rest is history.

“As we started to learn about the history of oil and what happened going back to standard oil. How that became a giant monopoly and then broken up and how it moved us into the 70’s and then we had the oil embargo. The story is so enormous and fascinating we kept running in to these things that you don’t really think about or know unless you have researched it,” Jeremy said. He continued by saying, “We started researching alternative fuels and seeing what was the most viable thing and we came across biodiesel and what was happening in that industry.”

The duo share that their message to viewers is to explain this concept that has been made very complex, when it shouldn’t be. Gas Hole presents the idea that the solutions to our oil dependency is relatively simple.

“We hope through the film we can open people’s eyes and make them think about things they have never thought about before and takeaway all the great things in history that have been accomplished. It took hard work and determination, we are a great country – we have great innovators. This is a perfect example being here at this conference and seeing the people that are doing just that.” added Scott.

If you are interested in purchasing Gas Hole, visit GasHoleMovie.com. It is also available on iTunes, Netflix, Amazon and basically all the major outlets.

You can listen to Chuck’s complete interview with Jeremy & Scott here: Interview with Jeremy Wagner & Scott Roberts

2014 National Biodiesel Conference Photo Album

Agribusiness, Audio, Biodiesel, Biodiesel Conference, biofuels, Video

Informa Study Shows E85, E15 Can Achieve RFS

Joanna Schroeder

According to a new study by Informa Economics, “Analysis of the Potential Use of Biofuels toward the Renewable Fuel Standard in 2014, shows intended Renewable Fuel Standard (RFS) 2014 blending requirements as outlined by statute can be reached through expanded consumption of E85, E15 and carryover of RIN credits (Renewable Identification Numbers). According to the Renewable Fuels Association (RFA), the study “clearly demonstrates why the Environmental Protection Agency’s proposal to reduce RFS blending requirements is unnecessary and imprudent”.

Using empirical data from 2013, the study finds that E85 sales volumes respond strongly to changes in RIN prices. The authors say this demonstrates the RFS program is working exactly as intended to drive expanded consumption of biofuels above the so-called E10 “blend wall.” The study finds, “It is possible for all statutory components and allocations within the Renewable Fuel Standard to be met in 2014, after adjustments have been made for a waiver of a large majority of the Cellulosic Biofuel Standard.”

The study takes a closer look at likely consumption, finding that ethanol consumption in 2014 could be at least 13.7 billion gallons, comFreedom Fuel ethanol blender pumppared to the EPA’s assumption of 13.0 billion gallons. It points toward E85 as a major contributor, “E85 accounts for most of the potential for expanded consumption….The increase could be even larger if E85 is priced at a sustained discount to gasoline (on an energy-equivalent basis), as the consumer response could be stronger than implied by historical data, since discounts have been transitory in the past.”

Bob Dinneen, RFA president and CEO said of the report, “This study is further proof that the so-called ‘blend wall’ can be easily scaled if the RFS is allowed to work as intended. As I have said time and time again, the RIN mechanism is the tool to drive innovation and infrastructure to accommodate higher ethanol blends like E85 and E15. There is absolutely no need to reduce or repeal the RFS. It is working.”

Roger Zylstra, a farmer from central Iowa and current president of the Iowa Corn Growers Association added, “We hope that this study further emphasizes that the EPA decision to lower the RVO just doesn’t make sense. As a corn grower, I know we have the science and the production to back up the current RFS. It is working and we need to move forward, not backward on our energy security.”

The Informa analysis was commissioned by RFA and the Iowa Corn Promotion Board.

biofuels, E15, E85, EPA, Ethanol, RFA, RFS, RINS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFPacific Ethanol has announced it will implement yield-enhancing technology at its Magic Valley, Idaho plant. The company chose ICM Inc.’s Selective Milling Technology as a component in its process to increase corn oil production and boost ethanol yields by increasing available starch for conversion.
  • International marine engineering company, SeaRoc, have been shortlisted for the 2014 renewableUK Health & Safety Awards for their innovation and delivery of a ‘minimal human intervention’ lattice tower installation methodology, recently deployed at Dogger Bank. Voting is open now.
  • NG Advantage welcomed Ken Pulido as the company’s Chief Financial Officer. Pulido comes to NG Advantage with over fifteen years of corporate finance experience focused solely on the energy and power sectors. Having worked for both financial institutions and in corporate energy firms, he has assisted companies in carrying out their strategic business plans by structuring and executing financings across the capital structure.
  • Indianapolis based Palmer Trucks has 38 used 2012 Kenworth T440 Compressed Natural Gas (CNG) tractors for sale. The tractors are one of the first CNG tractor fleets to hit the secondary market in the country. These CNG tractors mark the migration of fleets switching their fuel choice from diesel to compressed natural gas.
Bioenergy Bytes

MIT Researchers Enhancing Solar Power

Joanna Schroeder

MIT researchers have developed a new approach to harvesting solar energy. The technique uses sunlight to heat high-temperature materials whose infrared radiation would be collected by a conventional photovoltaic cell. Researchers say this both improves efficiency as well as could make it easier to store the energy for later use. By adding the extra step, it makes it possible to take advantage of wavelengths of light that typically go to waste.

The process is described in a paper published in the journal Nature Nanotechnology written by graduate student Andrej Lenert, associate professor of mechanical engineering Evelyn Wang, physics professor Marin Soljačić, principal research scientist Ivan Celanović, and three others.MIT nanophotonic solar thermophotovoltaic device

A conventional silicon-based solar cell “doesn’t take advantage of all the photons,” Wang explains. That’s because converting the energy of a photon into electricity requires that the photon’s energy level match that of a characteristic of the photovoltaic (PV) material called a bandgap. Silicon’s bandgap responds to many wavelengths of light, but misses many others.

To address that limitation, the team inserted a two-layer absorber-emitter device — made of novel materials including carbon nanotubes and photonic crystals — between the sunlight and the PV cell. This intermediate material collects energy from a broad spectrum of sunlight, heating up in the process. When it heats up, as with a piece of iron that glows red hot, it emits light of a particular wavelength, which in this case is tuned to match the bandgap of the PV cell mounted nearby.

This basic concept has been explored for several years but Wang says that with TPV systems, “the efficiency would be significantly higher — it could ideally be over 80 percent.”

Lenert, Wang, and their team have already produced an initial test device with a measured efficiency of 3.2 percent, and they say with further work they expect to be able to reach 20 percent efficiency — enough, they say, for a commercially viable product.

In their experiments, the researchers used simulated sunlight, and found that its peak efficiency came when its intensity was equivalent to a focusing system that concentrates sunlight by a factor of 750. This light heated the absorber-emitter to a temperature of 962 degrees Celsius. The MIT researchers say that after further optimization, it should be possible to get the same kind of enhancement at even lower sunlight concentrations, making the systems easier to operate.

Such a system, the team says, combines the advantages of solar photovoltaic systems, which turn sunlight directly into electricity, and solar thermal systems, which can have an advantage for delayed use because heat can be more easily stored than electricity. The new solar thermophotovoltaic systems, they say, could provide efficiency because of their broadband absorption of sunlight; scalability and compactness, because they are based on existing chip-manufacturing technology; and ease of energy storage, because of their reliance on heat.

Alternative energy, Research, Solar

Rethinking Biofuel Yields

Joanna Schroeder

According to new research from Michigan State University (MSU), focusing solely on biomass yield comes at a high price. Looking at the big picture allows other biofuel crops, such as perennial grasses to score higher than corn, as viable alternatives for biofuel production. The research was published in the recent issue of Proceedings for the National Academy of Sciences.

GLBRC / KBS LTER cellulosic biofuels research experiment; Photo“We believe our findings have major implications for bioenergy research and policy,” said Doug Landis, MSU entomologist and one of the paper’s lead authors. “Biomass yield is obviously a key goal, but it appears to come at the expense of many other environmental benefits that society may desire from rural landscapes.”

Landis and a team of researchers from the Great Lakes Bioenergy Research Center compared three potential biofuel crops: corn, switchgrass, and mixes of native prairie grasses and flowering plants. They measured the diversity of plants, pest and beneficial insects, birds and microbes that consume methane, a greenhouse gas that contributes to climate change. Methane consumption, pest suppression, pollination and bird populations were higher in perennial grasslands.

In addition, the team found that the grass crops’ ability to harbor such increased biodiversity is strongly linked to the fields’ location relative to other habitats. For example, pest suppression, which is already higher in perennial grass crops, increased by an additional 30 percent when fields were located near other perennial grass habitats.

This suggests, says Landis, that in order to enhance pest suppression and other critical ecosystem services, coordinated land use should play a key role in agricultural policy and planning. “With supportive policies, we envision the ability to design agricultural landscapes to maximize multiple benefits.”

Landis points out that rising corn and other commodity prices tempt farmers to till and plant as much of their available land as possible. This includes farming marginal lands that produce lower yields as well as converting acreage set aside for the Conservation Reserve Program, grasslands and wetlands.

“Yes, corn prices are currently attractive to farmers, but with the exception of biomass yield, all other services were greater in the perennial grass crops,” Landis said. “If high commodity prices continue to drive conversion of these marginal lands to annual crop production, it will reduce the flexibility we have in the future to promote other critical services like pollination, pest suppression and reduction of greenhouse gasses.”

biofuels, biomass, Cellulosic, Research

Cold Weather, Logistics Problems Squeeze Propane

John Davis

As the Midwest is hit with yet another Arctic blast, experts at the Energy Information Administration (EIA) say the cold and logistics problems are making prices of propane spike. This story from the EIA says part of the problem includes no chance to recover inventories after this fall’s harvest.

In the Midwest, propane is used for both drying agricultural crops and heating homes and businesses. For corn to be stored, it first needs to be dried, using large-scale heaters that often use propane for fuel. A late-2013 corn harvest, along with cold, wet weather, resulted in strong demand for propane at distribution terminals in the Upper Midwest. For the week ending November 1, 2013, Midwest propane inventories dropped more than 2 million barrels, the largest single-week stock draw in any November since 1993. This demand prompted a strong upward price response, and propane at Conway moved to a 3-cent-per-gallon (gal) premium over Mont Belvieu during the first week of November, the first such premium in almost three years.
eiapropane1
After the harvest, logistical problems prevented the region from fully replenishing inventories before the onset of winter. The Upper Midwest is supplied with propane by pipelines (Mid-American and ONEOK) flowing north from Conway (home to 30% of the nation’s propane storage), the Cochin Pipeline coming south from Canada, and from rail deliveries. The Cochin Pipeline, which delivers ethane and propane from Canada to the Upper Midwest, was out of service for maintenance from late November to December 20 and unavailable to deliver supplies. Rail transportation disruptions, both due to weather and other factors, curtailed deliveries from Mont Belvieu and Conway, as well as from Canada.

thuneThe pinch that Midwesterners, especially farmers, are feeling prompted Republican Senator John Thune of South Dakota, the Ranking Member of the Senate Commerce, Science, and Transportation Committee, to send a letter to the Federal Motor Carrier Safety Administration (FMCSA) asking for a lift on limits for drivers transporting propane in the Western region.

“Regional supply disruptions, high demand from a wet corn harvest, and the extreme cold temperatures this winter have strained propane and home heating oil supplies throughout the region,” said Thune. “The brutally cold temperatures in South Dakota, and across the region, this winter are a challenge for families and businesses, and a tight propane market only increases the dangerous conditions residents are facing. I will continue working with all relevant federal agencies to address this ongoing situation.”

FMCSA made similar declarations for propane distribution centers in the Southern, Eastern, and Midwestern areas the administration controls.

Propane

Minnesotans Encouraged to Think Biodiesel

John Davis

Minnesota soybean farmers are reminding their fellow Minnesotans just how much biodiesel has cleaned up the air they breathe. The Minnesota Soybean Research & Promotion Council (MSR&PC), better known as Minnesota Soybean, launched a campaign that clearly illustrates the advantages of soy-based biodiesel in improving air quality, including the following video airing local TV and cable stations, as well on the group’s social media channels:


“We want to open the consumer’s eyes to the reality of emissions from vehicles that run on petroleum. In fact, vehicle emissions are the largest source of air pollution in Minnesota,” states Bill Zurn, a Becker County farmer and Minnesota Soybean New Uses Action Team chair. “There is a positive message here in the use of alternative fuels.”

“Biodiesel is a cleaner-burning fuel that’s made in Minnesota,” says Bob Moffitt, communications director for the American Lung Association in Minnesota (ALAMN). “We recognize biodiesel as a Clean Air Choice® because of its ability to significantly reduce tailpipe emissions and help lessen our exposure to air pollutants. Not only does using biodiesel reduce particulate emissions, it also reduces greenhouse gas emissions.”

The group also points out that biodiesel in Minnesota alone provides more than 5,600 jobs, adds about $928 million to the economy, and increases demand by 13 percent for the state’s while also increasing in-state soybean processing capacity by 31 percent.

Minnesota Soybean is also offering a “North Shore Clean Air Adventure” to Duluth, rated by the American Lung Association as one of the top 25 cleanest U.S. cities. Winners get a three-night stay in the city and $500 spending money. The website www.biodiesel.mn has more information.

Biodiesel, Soybeans, Video