Soybean Growers Push for Biodiesel in Big Apple

John Davis

New York Bioheat Advertising CampaignThe growers of the most popular feedstock for biodiesel made the case for the green fuel to the largest market in the U.S. This story from the Grand Island (NE) Independent tells how members of the Nebraska Soybean Board and more than 90 other representatives from the United Soybean Board (USB), American Soybean Association (ASA), and nine other state soybean boards went to New York City to see how the metropolis is using biodiesel and Bioheat, heating oil mixed with biodiesel.

By 2015, all buildings in New York City that use heating oil will be required to use a B5 blend of Bioheat, meaning that it contains 5 percent pure biodiesel.

According to the Nebraska Soybean Board, New York City has led the way in embracing alternative fuels such as biodiesel and Bioheat. In 2007, Mayor Michael Bloomberg announced his Plan NYC, which brought 25 city agencies together to help tackle some of the toughest issues facing the city in the years to come. As a part of this visionary plan, Bloomberg called for a 30 percent reduction of greenhouse gas emissions by 2017.

Keith Kerman, the chief fleet officer and deputy commissioner for NYC’s Department of Citywide Administrative Services, said biodiesel and Bioheat have played key roles in helping the city meet its GHG reduction goal.

“As of last year, we had reduced our emissions by 9.3 percent, and we fully expect that number to be over 20 percent after this year,” Kerman said.

State soybean boards, including the one in Nebraska, have been big funders of biodiesel and Bioheat education and outreach to areas outside of the Midwest, especially in the metropolitan areas, such as New York City. Makes sense as the East Coast markets are a great place to make use of the green fuel when it might not be moving as well in the wintertime back where most of it is produced, the agricultural areas of the Midwest.

Agribusiness, Biodiesel, USB

Iowa leads Ethanol Production in 2013

Joanna Schroeder

During 2013, 42 ethanol plants in Iowa produced 3.7 billion gallons matching 2011 and 2012. This was reported by the Iowa Renewable Fuels Association (IRFA) who also notes that Iowa continues to be the number one ethanol producing state and is estimated to account for nearly 28 percent of national ethanol production for the year.

IRFA points out that the recent start-up of a new we mill and three cellulosic ethanol projects set to go into production in 2014 provide hope for growth next year.

Quad County Corn Processors in Galva Iowa“Iowa ethanol production was up in 2013, but not enough to round the decimal point,” said IRFA Executive Director Monte Shaw. “With the record U.S. corn harvest in the bin and new production facilities coming on line, there is hope that Iowa can once again expand ethanol production.”

“But hanging over that potential like a gray cloud is the EPA proposal to cut the RFS. Maintaining the RFS would launch new E15 and E85 markets and Iowa could easily grow to meet the demand. But without a strong RFS, we’ll be looking for export opportunities to drive production. That’s sad when you consider the U.S. still imports a sizeable chunk of its crude oil,” added Shaw.

IRFA is urging all Iowans to contact President Obama and the EPA to urge them to stand behind a strong renewable fuel standard (RFS). Those wishing to submit a comment can do so on the Fuels America website.

biofuels, Ethanol, Iowa RFA, Renewable Energy, RFS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFGeorgia Power is soliciting proposals through a combined Requests for Proposals (RFP) process to fulfill nearly 500 megawatts (MW) of utility-scale solar generation. The RFP includes 70 MW to complete the Georgia Power Advanced Solar Initiative (GPASI) portfolio and 425 MW approved as part of the company’s 2013 Integrated Resource Plan (IRP). The RFP will be conducted with oversight by the Accion Group, Inc., which is serving as the Independent Evaluator for the process. Details about the solicitation and the in-service dates for the programs are outlined on Accion’s website. The company will accept comments on the draft RFP documents through January 31, 2014 and will host a RFP bidders conference at the company’s Atlanta headquarters on January 13, 2014.
  • Higher Power Energy LLC, based in Flower Mound, Texas has broken ground on a 300 megawatt wind farm in Castro County, southwest of Amarillo. Lincoln Renewable Energy will build the wind farm, which will have more than 100 General Electric turbines spread out over 35,000 acres.
  • Basin Electric has signed a power purchase agreement associated with the development of a new wind project to be developed in South Dakota. The project is co-owned by Fagen Inc. of Granite Falls, and the principals of Dakota Plains Energy, a wind farm developer based in Aberdeen, S.D. The project is planned to be operational by the end of 2015.
  • Ferrellgas Partners, L.P. has announced the acquisition of Motor Propane Service, an independent propane company with locations in Manitowoc and Sheboygan, Wisconsin. It is Ferrellgas’ second acquisition in its fiscal year that began August 1, 2013, joining the company’s recent purchase of KanGas Corporation, which was completed on Nov. 25, 2013. Specific terms of the transaction, which the company indicates will be immediately accretive, were not disclosed.
Bioenergy Bytes

Hawaiian PUC Rejects Biodiesel Bid

John Davis

AKP_logo1Hawaii’s Public Utility Commission (PUC) has turned down a bid for a local biodiesel maker to produce the green fuel for a power plant. This story on BigIslandNow.com says the PUC rejected the bid of Honolulu-based Aina Koa Pono LLC, the second attempt by the biodiesel producer to sell its fuel to Hawaii Electric Light Co. (HELCO).

Aina Koa Pono wanted the PUC’s approval to sell 16 million gallons of biofuel annually to HELCO’s Keahole power plant on a 20-year contract. The fuel would be produced at a $450 million plant to be built in Ka`u.

The PUC however said in a ruling this week that the proposed deal’s cost was “excessive … not cost effective (and) not in the public interest,” similar to its response to an earlier proposal.

Aina Koa Pono founder Kenton Eldridge told PBN that the company is negotiating with a Georgia firm for purchase of 24 million gallons of bio-diesel and that plans for the Kau production plant would go forward despite the PUC’s ruling.

The Ka`u facility is expected to create 400 jobs during construction and 200 permanent jobs when completed.

Biodiesel

Gevo Applauds UL Biobutanol Decision

Joanna Schroeder

gevo logoGevo, Inc. has applauded Underwriter Laboratories (UL) decision to approve the generic use of up to 16 percent isobutanol (biobutanol) in UL 871A pumps manufactured by any company that meets ASTM specifications. If a retail gasoline station currently has these pumps, then no changes need to be made to offer consumers isobutanol.

Gevo has been working with UL for several years to approve the use of isobutanol in UL 87A pumps. UL in working with various companies and independent laboratories compiled data for their scientific determination on isobutanol. Gevo sponsored a large study based on SAE J1681 and using a model created in a previous UL investigation with ethanol-surrogate gasoline fuel blends.

“I am very pleased with what we have accomplished with UL. They are great organization to work with in the commercialization of isobutanol,” said Glenn Johnston, Executive Vice President for Regulatory Affairs at Gevo. “This removes another hurdle in the commercialization of renewable isobutanol in on-road gasoline.”

Alternative energy, biobutanol, biofuels

Senator Max Baucus Unveils Tax Reform Proposal

Joanna Schroeder

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Orrin Hatch (R-Utah) have launched a process for the committee to begin developing a proposal to reform America’s tax code. Over the next several months, the committee will convene weekly to discuss a series of topics and collect feedback from members on a wide range of options for taking on tax reform. The revised incentives are designed to be more technology neutral.

Senator Max Baucus“It is time to bring our energy tax policy into the 21st century,” Baucus said. “Our current set of energy tax incentives is overly complex and picks winners and losers with no clear policy rationale. We need a system of energy incentives that is more predictable, rational, and technology-neutral to increase our energy security and ensure a clean and healthy environment for future generations.”

Ethanol Today reports that information released by Baucus finds that current law contains 42 different energy tax incentives, including more than a dozen for fossil fuels. An additional 10 tax incentives exist for renewable fuels and alternative vehicles, along with six credits for clean electricity. Of these, 25 are set to expire every year to two years and if they are extended, could cost taxpayers nearly $150 billion over the next decade.

The proposal aims to neutralize clean energy technologies, i.e. not play “favorites” as the federal government is often accused of doing. Based on several criteria, tax incentives for all forms of energy would be based on a “cleanliness credit” or determined by a ratio of the greenhouse gas emissions (GHGs) of a facility divided by its electricity production.

The incentive would be available as either a production tax credit of up to 2.3 cents per kilowatt hour or an investment tax credit of up to 20 percent. The production tax credit would be indexed for inflation and could be claimed on a single facility for a maximum of 10 years.

orrin-hatchA second incentive outline by the proposal is the clean transportation incentive and would be available for fuels that are 25 percent cleaner than conventional gasoline. The percent of “cleanliness” would be determined by the production process’s lifecycle emissions basis as determined by the Environmental Protection Agency (EPA). The max credit would be $1 per gallon.

Senator Baucus has invited members of Congress, key stakeholders and the general public to provide feedback on the draft. Comments must be submitted by January 31, 2014 (the same time comments for the EPA’s proposed renewable fuel volumes for the 2014 Renewable Fuel Standard (RFS). Click here for information about the proposal as well as information on how to submit comments.

Clean Energy, energy efficiency, Environment, Legislation, Renewable Energy

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFSave the date for the Ethanol 2014 Emerging Issues Forum taking place in Omaha, Nebraska April 10-11th 2014.
  • Ethanol Producer Magazine is hosting a free webinar on January 16, 2014 at 2:00 at 2:00 pm CST, “Early 2014 Distillers Grains Exports Outlook: New Opportunities, New Challenges”. The webinar will provide a near-term outlook on distillers grains exports, along with year-end export data for 2013 and supply and demand projections for early 2014. Industry experts will explain the drivers behind the rising use of DDGS and other coproducts, including the ongoing education (and reeducation) of major buyers, and the latent growth potential represented by the sheer volumes of feed needed to meet the world’s growing demand for protein. Click here to register.
  • Canadian Solar Inc. one of the world’s largest solar power companies, has officially joined the Solar Energy Industries Association (SEIA) at the board level.
  • MarketResearchReports.Biz has released “Global Algae Biofuel Technologies Market 2014-2018” with a CAGR of 43.4 percent for the period 2013–2018. Several driving factors and trends will contribute to this growth—all of which will be outlined with detail in this report. Analysts use a unique methodology to scrutinize individual vendor performance, trends, drivers and challenges, and a number of other factors to provide the most accurate and detailed market research reports possible. Overview of market share and landscape for the following key geographies: APAC, Europe, Americas, Africa and the Middle East.
Bioenergy Bytes

2013 Brought Global Growth to Geothermal

Joanna Schroeder

This year marks strong global growth for the geothermal industry and is positioned to see greater growth by 2020. In 2013, the Geothermal Energy Association (GEA) identified 70 countries moving forward with nearly 700 geothermal power projects. In 2007, the number was only 46 countries developing or considering geothermal projects. In addition, more U.S. companies are pursuing projects in other countries.

“We are seeing new technology developments move forward and new projects being announced in every region of the world,” said Karl Gawell, Executive Director, Geothermal Energy Association. “Despite slow growth in the United States, the global market continues to gain steam. So, many American geothermal companies are using their industry know-how in friendlier economic and political climates overseas.”

geothermal energy Photo Jennifer BoyerThis year, the industry surpassed 12,000 MW of geothermal power operational, with about 600 MW of new geothermal power coming online globally. New geothermal power came online in Kenya, New Zealand, Nicaragua, Turkey, and Mexico, as well as Oregon, Nevada and Utah in the United States. New announcements in the U.S., Ethiopia, Kenya, the Caribbean and others have increased the developing resource of geothermal power to about 30,000 MW.

The international geothermal power industry is poised to place between 500 and 1,000 MW on line per year for the rest of the decade. This year new geothermal geologic studies or exploration moved forward in places as diverse as American Samoa, Argentina, Armenia, Australia, Azerbaijan, El Salvador, Ethiopia, Indonesia, Japan, Malaysia, Rwanda, Saudi Arabia, St. Vincent and the Grenadines, Taiwan, Thailand, Uganda, the United States, and Yemen.

Financing was also strong during 2013 with projects announced in Costa Rica, Dominica, Djibouti, Ethiopia, Indonesia, Japan, Kenya, Mexico, Tanzania, and the United States, while projects in drilling and start-of-construction phases made headway in Chile, Germany, Guatemala, Italy, Japan, Montserrat, The Philippines, Rwanda, and Zambia.

Technological advancements were made this year in Enhanced Geothermal Systems (EGS) with successful EGS projects in the U.S. completed by Calpine Corp., Ormat Technologies and AltaRock Energy. Around the world, Australia put its first EGS pilot plant, a 1-MW trial, on line at Habanero, and in Europe, there were EGS advancements in Hungary, the United Kingdom and Switzerland.

At the beginning of 2013, geothermal tax credits were adjusted to qualify projects at the construction stage. Only in the last month of the year have there been signs of change in Washington D.C., with a bipartisan, bicameral budget deal in the Congress and a new clean energy tax proposal by Senate Finance Chair Max Baucus (D-MT).

“The budget deal could open the door to finishing appropriations bills, which could reinvigorate the DOE research program,” Gawell said. “And the Baucus tax paper breathes new life into efforts to establish long-term incentives for geothermal and other clean power technologies.”

Alternative energy, Geothermal

Neste’s Palm Oil Certified Sustainable 2 Years Early

John Davis

palmoilFinnish renewable diesel producer Neste Oil has certified 100 percent of the palm oil used as the feedstock in its green fuel production process as sustainably produced. This company news release says the company was able to achieve that goal two years earlier than expected.

“We are very satisfied that our systematic work to ensure the sustainability of palm oil usage is bearing fruit in this way,” says Simo Honkanen, Neste OIl’s Senior Vice President, Sustainability and HSSE. “Neste Oil has been an industry pioneer in this area and the sustainability criteria and traceability practices that it has developed and implemented have the potential to serve as models for other industries. This achievement will give us a good foundation for further developing the sustainability of our supply chain.”

Certification verifies that the sustainability criteria set for biofuels are met throughout the supply chain. Neste Oil requires all its palm oil suppliers to be members of the RSPO (Roundtable on Sustainable Palm Oil). The palm oil used by Neste Oil is certified in accordance with the international certification systems approved under EU legislation, such as ISCC and RSPO-RED. These systems define what constitutes sustainable operations and the criteria used for determining sustainability, together with the documentation required for a sustainable supply chain. An independent third-party body is responsible for auditing Neste Oil’s certified palm oil producers annually.

The achievement comes less than a month after Neste Oil became the world’s first company to get the RSPO-RED Supply Chain certificate under the Roundtable on Sustainable Palm Oil’s (RSPO) new certification system.

Biodiesel, International

Biodiesel Conference to Discuss Challenges Ahead

John Davis

NBBconflogo2014-1The National Biodiesel Conference & Expo is less than a month away, and the CEO of the National Biodiesel Board stresses that they need as many people involved in biodiesel as possible there, especially in light of the challenges facing the industry.

“Congress, for the third time in five years, through its inaction, is going to allow the biodiesel tax credit to expire,” Joe Jobe says, adding that the industry is getting hit with a double whammy, as the Environmental Protection Agency is effectively proposing to cut the amount of biodiesel to be blended into the Nation’s fuel supply. The end of that rulemaking process comes just a week after the conference, Jan. 20-23, 2014, so that makes it that much more important to get together at this crucial time. “The industry is really going to come together in San Diego and really work on unifying and attacking these threats together.”

Joe says it’s fitting with the biodiesel industry’s back to the wall that they have Jim Craig, the goaltender for the 1980 U.S. Olympic hockey team as the keynote speaker on the first day of the conference. More than 30 years ago, America seemed to face insurmountable odds against the most dominating hockey team of the era, the Soviet Union. But just like the “Miracle on Ice” hockey team that overcame those odds, Joe believes the biodiesel industry can face down the power and might of the “largest, wealthiest, most powerful industry, the petroleum industry, in human history. And right now they’re kind of getting their way with us, [but] we’re about to show what we can do… come from behind and win!”

“The biodiesel industry has always been the underdog, and we’ve always punched above our weight class. And we’re going to do it again and win this thing.”

Plus, don’t forget, San Diego is usually in the mid 70s and sunny that time of year… probably an improvement from what many biodiesel folks in the Midwest are experiencing now!

There’s still time to register; just click here.

Listen to more of my conversation with Joe here: Joe Jobe, CEO NBB

Audio, Biodiesel, Biodiesel Conference, NBB