Maine Wind Project Faces Crucial Vote This A.M.

John Davis

aquaventasmaineThe fate of an offshore wind project is in the hands of the Maine Public Utilities Commission this morning. This story from the Bangor Daily News says the floating turbine technology project is facing the commission vote on whether it can move forward under a long-term power contract.

Tuesday’s PUC meeting is not a public hearing. Only commissioners will be allowed to speak during the deliberations. They will also be able to ask questions of PUC staff about Maine Aqua Ventus’ project and the project’s term sheet, which details the conditions under which the consortium will sell an estimated 43,000 megawatt hours per year to the power grid from its two, six-megawatt turbines at a price of 23 cents per kilowatt hour. That’s about 14 cents more per kilowatt hour than the current standard offer rate set by the PUC.

The pilot project proposed for waters off Monhegan Island is the next step in the development of UMaine’s offshore wind technology. The university in June 2013 deployed a 1:8-scale model of VolturnUS, its prototype floating turbine, in waters of Castine.

Maine Aqua Ventus I would be a pilot for the future development of a 500-megawatt offshore wind farm project in the Gulf of Maine and possibly elsewhere. The goal is to achieve wind-generated electricity at 10 cents per kilowatt hour by the 2030s.

University of Maine economists say the $120 million project will create more than 300 full- and part-time jobs.

Wind

Feds Continue Crackdown in RIN Fraud Case

John Davis

scalesofjustice1More charges are coming against an Indiana company that defrauded investors and the government over Renewable Identification Numbers. FuelFix.com reports the U.S. Environmental Protection Agency (EPA) is bringing charges against Evansville-based Imperial Petroleum and its wholly owned subsidiary, Middletown, Ind.-based e-Biofuels for falsely generating more than 33.5 million invalid RINs.

The EPA alleges that e-Biofuels generated more than 33.5 million invalid fuel credits “from at least July 1, 2010, through June 2, 2011,” and transferred most of those fuel credits, also called Renewable Identification Numbers, to producers or importers of renewable fuels such as ethanol or biodiesel.

The agency’s notices offer e-Biofuels and Imperial Petroleum the chance to discuss the matter with the EPA.

Under the Clean Air Act, the EPA can assess a civil penalty of up to $37,500 per day, per violation.

These are the latest in a series of charges stemming from this past fall when Imperial Petroleum’s president, Jeffrey Wilson, and Craig Ducey, e-Biofuels’ former president, were indicted in the scam.

EPA, RINS

Researchers “Milk” Algae to Get Biodiesel Feedstock

John Davis

moheimaniUsually, when biodiesel producers are using algae to provide the feedstock oil to produce the green fuel, they have to destroy the algal cells to get the oil. But this article from Phys.org says Australian researchers might have found a way to “milk” the oil from the algae species Bortyococcus braunii so they can keep producing more biodiesel feedstock.

Murdoch University School of Veterinary and Life Sciences Algae R&D Centre researcher Dr Navid Moheimani and his team, in collaboration with the University of Tsukuba (Japan) have been investigating a non-destructive approach rendering the algae to be ‘milked’ and ‘remilked’ every five days.

By using a compatible solvent (n-heptane) they were able to extract oil from non-growing state algae repeatedly—producing significantly more hydrocarbon (oil) and requiring significantly less expensive nutrients (as opposed to rapid growth phase).

Dr Moheimani says B. braunii could replace its external hydrocarbon after five days [after milking] in cultures with one per cent CO2 addition.

“The overall external hydrocarbon productivity using non-destructive extraction was at least 20 per cent higher compared with B. braunii grown in conventional semi-continuous culture,” he says.

The researchers go on to say the efficiencies come from having not to regrow the algae after each extraction, which saves on fertilizer and waste biomass disposal costs, and they’ve been able to re-milk the algae for more than two months. The only real challenge might be getting those little milking stools and tiny buckets under each cell (but at least they don’t kick like an old holstein).

algae, Biodiesel

Ethanol Keeps Record Corn Crop’s Prices Up

John Davis

obrienA record corn crop usually means falling prices at market for U.S. farmers. But this article from BioFuels Journal says a new report from a Kansas State University agricultural economist says high demand from ethanol producers is supporting the prices despite the record-high 13.9 billion bushels of corn last year.

“The markets responded positively to the corn data,” said Dan O’Brien, crops marketing specialist with K-State Research and Extension, referring to gains posted in corn futures after the Jan. 10 release of the U.S. Department of Agriculture’s Crop Production 2013 Summary.

“The corn production number (at 13.9 billion bushels) came in at the low end of market analysts’ estimates.

“That coupled with (USDA’s estimated) increases in feed and ethanol usage had the effect of lowering projected carryout stocks.”

“We still have a very large crop, but this demand adds a bit of support and might give producers at least marginally attractive selling opportunities,” said O’Brien, who is based at K-State’s Northwest Research-Extension Center in Colby.

News of the report on Jan. 10 immediately helped push corn prices 17 to nearly 20 cents higher per bushel.

Corn carryout was at 1.631 billion bushels, which was also below analysts’ expectations.

corn, Ethanol, Ethanol News

Iowa U.S. Senate Candidates Support Biofuels

John Davis

ia-rfaConsidering the state’s significant role in biofuels and renewable energy, there’s little surprise that primary candidates for the Iowa U.S. Senate seat are expressing their support of the green fuels. The Iowa Renewable Fuels Association (IRFA) says its 2014 Iowa U.S. Senate Primary Candidate Renewable Fuels Survey shows there’s strong, bipartisan support for renewable fuels among the state’s top candidates.

The full results and responses from candidates U.S. Rep. Bruce Braley, Sam Clovis, state Sen. Joni Ernst, and Mark Jacobs can be found here: http://www.iowarfa.org/2014IRFACandidateSurveys.php. Matt Whitaker informed IRFA he would not be returning the survey.

“Literally tens of thousands of Iowans are invested in or directly employed by the renewable fuels industry, and they deserve to know where the candidates stand on these important issues,” stated IRFA Policy Director Grant Menke. “It’s great to see every candidate who responded showed strong support for ethanol and biodiesel, demonstrating renewable fuels issues are important to Iowa’s future.”

In December, the IRFA held an Iowa GOP U.S. Senate Primary Candidate Renewable Fuels Forum where candidates Sam Clovis and Mark Jacobs answered questions on specific renewable fuels issues. Video of that forum is available here.

Biodiesel, biofuels, Ethanol, Ethanol News, Iowa RFA, News, politics

Lignol Ups Ownership of Territory Biofuels to 100%

John Davis

Lignol Energy logoCanada-based Lignol Energy Corp. is taking 100 percent control of Australia’s largest biodiesel producer, Territory Biofuels Ltd. (TBF). This article from Biodiesel Magazine says Lignol already had a controlling stake (55 percent) in the 37-million-gallon refinery.

TBF owns a large-scale biorefining facility located in Darwin, Northern Territory, Australia, which includes a Lurgi-designed biodiesel plant and the largest glycerin refinery in Australia. The facility was commissioned in 2008 at a cost of A$80 million, along with 38 million liters of related tankage, now leased by TBF. The biodiesel plant is the largest in Australia with a rated capacity of 140 million litres per year. The plant was originally built to run on palm oil and food-grade vegetable oil, however the plant was shut down in 2009 due to challenging technical and economic conditions. TBF is in the process of raising funds to restart the existing facility utilizing environmentally certified, refined, bleached and deodorized palm oil. In 2015, TBF plans to integrate new feedstock pretreatment technologies and catalysts to process a broader range of feedstocks such as lower quality tallow, used cooking oil and palm sludge oil; a waste product from palm oil mill extraction.

The deal is expected to be finalized by Jan. 31, 2014.

Biodiesel, International

Whikehart to Keynote National Ethanol Conference

John Davis

whikehartThe man in charge of Marathon Petroleum Company‘s biofuels supply chain will deliver the keynote address for next month’s National Ethanol Conference in Orlando, Fla. The Renewable Fuels Association announced David Whikehart, Director of Product Supply and Optimization at Marathon, will speak at the conference on Tuesday, Feb. 18 at 8:45 a.m. EST.

“David will be able to provide the NEC audience with a very unique perspective of the policy and marketing forces affecting the ethanol industry today. His responsibilities at Marathon place him at the nexus of ethanol production and gasoline refining. He understands the value of ethanol to refiners and the role of consumers in determining fuel choices at the pump,” said Bob Dinneen, President and CEO of the Renewable Fuels Association. “I think it is critical that we be open to the message of our customer, and I am very grateful to have David join us and look forward to hearing his thoughts on future trends and policies affecting the U.S. gasoline market.”

You can still register for the RFA’s 19th annual National Ethanol Conference, where the theme is “Falling Walls, Rising Tides.” Early bird discounts apply through Jan. 24. Click here for registration and more information.

Ethanol, Ethanol News, National Ethanol Conference, RFA

Connecticut City Installs Kyocera Solar Panels

John Davis

kyoceraSolar panels with the ability to offset the power needs of 5,000 homes have been installed in a city in Connecticut. Kyocera announced the 5-megawatt AC (7.4MW DC) project in Somers, Conn.

“Kyocera solar modules have earned a reputation for being some of the most efficient and reliable in the industry, built on our 38 years of experience in manufacturing photovoltaic energy solutions,” said Steve Hill, president of Kyocera Solar Inc. “Based on that history, we know Kyocera modules can be counted on to continue yielding high energy output for the 20-year agreement and beyond, serving Somers Solar Center and the people of Connecticut well.”

The system’s solar modules offer an effective way to reduce carbon dioxide emissions, which scientists regard as a primary contributor to climate change. Somers Solar Center will produce more than 10,200 megawatt-hours (MWh) of clean, renewable electricity annually, with a carbon impact equal to reducing oil consumption by 16,779 barrels ― or taking 1,503 cars off the road.

Kyocera boasts this new status as a U.S. solar project developer to follow the company’s lead in Japan, where it owns and operates a 70MW solar installation and will soon be adding another 30 to 35 additional smaller-scale solar projects providing an additional 60 to 70MW of renewable generating capacity. This past November, Kyocera opened a 1.6MW solar energy project at a school in Phoenix, Ariz. that will offset more than 60 percent of the school district’s annual electricity consumption.

Solar

Congress in No Hurry to Renew Biodiesel Tax Credit

John Davis

us-capitol-fiscal-cliff-voteCongress seems to be in no hurry to renew the $1-a-gallon federal biodiesel tax credit. And this analysis from Bloomberg BNA indicates that the biodiesel credit, as well as some other renewable energy credits, won’t come until later this year but at least will be applied retroactively.

“I think Congress has gotten over the idea that the world will stop spinning if they don’t rush back and do extenders,” said [John Gimigliano, principal in charge of the energy sustainability group in KPMG’s Washington national tax practice], who previously served as senior tax counsel for the House Ways and Means Committee.

While Gimigliano said quickly passing legislation on tax extenders will be “very difficult,” he said Congress would be likely to approve a legislative package in 2014 that extends the expiring provisions retroactively.

Any interest in moving quickly on tax extenders is likely to come from the Senate, where Sen. Orrin Hatch (R-Utah), ranking member of the Senate Finance Committee, has said committee staff from both parties have started the process of developing extenders legislation.

One legislative vehicle probably would be a bill needed possibly in March to extend the debt ceiling, although Congress may wait until after the November elections to act, analysts said.

Another thing bogging down the renewal of the credit is the nomination of Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, to become U.S. ambassador to China. Some analysts believe it might not be until the November elections before the biodiesel credit is renewed.

Biodiesel, Government, Legislation

Corn Stocks and Ethanol Use Increased

Cindy Zimmerman

USDA-LogoThe newest supply and demand estimate from the U.S. Department of Agriculture confirms a record corn harvest in 2013 of just under 14 billion bushels and an increased in usage of corn for ethanol.

USDA’s World Agricultural Supply Demand Estimate for January 10 projects corn use for 2013/14 higher with feed and residual use projected up 100 million bushels based on September-November disappearance as indicated by the December 1 stocks estimate. “Corn used to produce ethanol is raised 50 million bushels reflecting continued strong weekly ethanol production, a reduction in expected sorghum use for ethanol, and higher forecast 2014 gasoline consumption in the latest projections from the Energy Information Administration.”

RFA-logo-13
Renewable Fuels Association (RFA) president and CEO Bob Dinneen says the report’s numbers indicate that now is a bad time to reduce volume requirements under the Renewable Fuel Standard (RFS). “Due to the expected corn surplus, corn prices have already dropped to nearly $4.00/bushel – half the price of corn in late summer 2012, below the price of corn when EISA was signed into law in 2007, and below the farmer’s cost of production,” Dinneen said in a statement, adding that farmers, small businesses and innovation in next generation biofuels would be adversely impacted by lowering the RFS in 2014. “It doesn’t have to be this way, there is still time for the Obama White House and EPA to do the right thing and restore the numbers for ethanol to their statutory levels.”

corn, Ethanol, Ethanol News, RFA, RFS, USDA