Biodiesel Maker Expands Beyond Mideast & McD’s

John Davis

Neutral-Fuels-logoA biodiesel maker in Dubai in the oil-rich Middle East is looking to expand out of its region and expand out of its primary feedstock supplier: McDonald’s. This article from the Wall Street Journal says for the last couple of years, Neutral Fuels has been turning used french fry cooking oil into the green fuel, while expanding from the United Arab Emirates (UAE) to Asia, Africa and the Pacific.

That was 2011, and McDonald’s trucks have now travelled more than 2 million kilometers on biodiesel in the U.A.E. British citizen Mr. [Karl] Feilder has since agreed to help McDonald’s roll out a similar process in the Asia Pacific, Middle East and Africa region where the chain is rapidly opening new stores. At the end of 2012, Neutral Fuels, the SME’s biodiesel subsidiary, set up a production facility in Melbourne to serve 152 McDonald’s outlets in the state of Victoria, and eventually aims to integrate 1,000 outlets in the wider Australia market.

Then in September, Neutral Fuels received 4 million Australian dollars from Lignol Energy Corporation, listed on Canada’s TSX Ventures Exchange, to acquire a 40% equity stake in the SME and a 51% interest in its Australia and New Zealand biodiesel operation. This year, Mr. Feilder wants to expand further. “There are two to three new countries on our list,” he said in an interview. “We want to be in five countries by the end of the year.”

China, Japan and Australia are currently McDonald’s biggest markets in the APMEA region, he said, without disclosing in which countries operations would next be started. Based in Dubai, The Neutral Group has set up offices in Australia, China, Hong Kong, New Zealand and South Africa.

The Neutral Group is also turning used cooking oil from Atlantis The Palm, one of Dubai’s signature hotels, into biodiesel and sells all its fuel on the open market in competition with petroleum-based diesel. A deal with Emirates Group and Etihad Airways is also in the works.

Biodiesel, International

Simadan Investing $88.6 Mil in Dutch Biodiesel Plant

John Davis

biodieselamsterdam1About $88.6 million is going into a Dutch biodiesel plant. This article from Biodiesel Magazine says Simadan Holding is putting the money into its subsidiary’s Biodiesel Amsterdam’s 45 million gallon a year refinery.

The new plant is part of the largest ecological industrial complex in Europe, according to Simadan Holding. The 12-acre complex now includes a biodiesel plant, a storage terminal, a 2-acre recycling plant, a biogas plant and tank cleaning. More than 99 percent of the incoming organic waste is converted into useful second-generation products, the company says. “Our biodiesel is of the highest quality and reduces CO2 emissions by more than 85 percent compared to fossil fuels,” said Peter Bakker, owner and founder of Simadan.

The project will also include a 50,000 ton a year glycerin distillation operation that will turn out a pharmaceutical-grade product.

Biodiesel, International

CleanFUEL USA Secures UL Autogas Dispenser Listing

Joanna Schroeder

Underwriters Laboratories (UL) has approved the Gilbarco Encore S liquefied petroleum gas (LPG) retail fuel dispenser used to dispense propane autogas. The dispenser also holds National Conference on Weights and Measures (NCWM) approval.

gI_81713_CleanFUEL USA Retail Autogas Dispenser Jan 2014CleanFUEL USA receives Encore 700 S and Encore S cabinets and electronics directly from Gilbarco, and completes the autogas dispenser with UL-listed components. The finished product results in an autogas dispenser, typically installed at retail settings with public access and controlled clientele, and features full retail capabilities for Payment Card Industry (PCI) compliance. The dispenser is also available as a single or dual-sided unit.

CleanFuel cites propane auto gs as the leading alternative fuel in the U.S. and says it costs an average of 30 to 40 percent less than gasoline and up to 50 percent less than diesel.

“As we continue to install autogas refueling stations throughout the world, we must
take steps to validate our technology performance and safety,” said Curtis Donaldson,
founder and managing partner of CleanFUEL USA. “Partnering with Gilbarco and adding
a UL-listed dispenser to our product lineup signifies our commitment to exceeding
customer expectations in alternative fuel dispensing, and highlights our continued
leadership in the autogas industry.”

Equipment, Propane

RINS Had No Impact on 2013 Gas Prices

Cindy Zimmerman

gaspricesDespite all the “RINsanity” caused in early 2013 when gas prices spiked and the oil industry pointed fingers at volatile Renewable Identification Numbers, a report out today exonerates RINS from blame.

The detailed statistical analysis conducted by Informa Economics and released today by the Renewable Fuels Association (RFA) finds that retail gasoline prices were “unaffected by the erratic surge in prices for Renewable Identification Number (RIN) credits in 2013.”

“Changes in prices of renewable identification numbers (RINs) did not cause changes in retail gasoline prices in 2013,” according to Informa’s report. “Retail gasoline prices were driven primarily by movements in crude oil prices and secondarily by changes in the spread between domestic and international crude oil prices and the level of vehicle miles driven in the U.S., which varies seasonally.”

Overall, gas prices in 2013 average less than the previous year, at $3.49 per gallon according to AAA. That is the lowest price since 2010. The highest one-day national average was $3.79 per gallon on February 27.

RFA president and CEO Bob Dinneen, Informa Senior VP Scott Richman and analyst Crystal Carpenter, and Geoff Cooper, RFA’s Vice President of Research and Analysis, held a press conference today to discuss the analysis. RINS report media call

Audio, Ethanol, Ethanol News, Oil, Research, RFA, RFS, RINS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFHeliae, a developer of advanced algae production technologies, commenced operations at its first commercial facility in Arizona. Using its Volaris-brand platform, the commercial facility will initially operate at 33% of its capacity to produce high-value algae products for nutraceutical and personal care products but biofuels represents another business avenue for consideration. The start-up, which aims to be at full capacity before the end of the first quarter this year, represents the first phase of Heliae’s plant with further expansion slated for late 2014.
  • The Board of Directors of Sinav Ltd., the owners of GTL Resources and Illinois River Energy, have retained Ascendant Financial Partners LLC to assist them in the sale of the GTL/IRE business. IRE is an ethanol production facility located in Rochelle, Illinois, that owns and operates a 125 million gallon per year ethanol plant that commenced operations in September of 2006.
  • Ergon, Inc. has announced that its wholly owned subsidiary, Ergon Ethanol, Inc., acquired Bunge North America, Inc.’s interest in and now owns 100% of Ergon BioFuels, LLC located in Vicksburg, Mississippi. Financial terms were not disclosed. Effective December 31, 2013, Bunge-Ergon Vicksburg, LLC changed its name to Ergon BioFuels, LLC.
  • According to a Bluefire Renewables 8K filing with the US Securities and Exchange Commission, the Department of Energy (DOE) will no longer provide funding to the company that is developing a cellulosic waste facility in Fulton, Mississippi. In the Dec. 23 filing, Bluefire says it received noticed that the DOE was pulling its grant funding because it failed to comply with DOE deadlines related to providing information about the company’s future financing arrangements for the Fulton project. The company says it is seeking to re-establish funding under the DOE grant and has initiated the appeals process.
Bioenergy Bytes

Dynamometer Test Facility Sets Wind on New Course

Joanna Schroeder

Days before the holiday season, the Energy Department’s National Renewable Energy Laboratory (NREL) set the wind industry on a new course with the addition of a new 5MW Dynamometer Test Facility at its National Wind Technology Center (NWTC). The new facility will better enable NWTC engineers and their industry partners to verify the performance and reliability of wind turbine drivetrain prototypes and commercial machines. Increased performance and realiability will lead to more competitively cost wind energy.

The facility will be able to test virtually any land-based turbine in more “real time” conditions that turbines experience out on the “farm”.

“These new capabilities make this a very special facility, one of the largest and finest of its kind in the world,” said NWTC Director Fort Felker. “It gives NREL an enhanced ability to do comprehensive testing of modern multi-megawatt wind turbine systems in a laboratory environment to verify their performance and reliability before they are widely deployed.”

A dynamometer system replaces the rotor and blades of a wind turbine and allows researchers to control the turbine drivetrain’s mechanical and electrical systems while simulating normal and extreme operating conditions. Historically, this testing has been done under torque (rotating) loads only. However, the NWTC facility incorporates a non-torque loading s20131226_dynamometer_28229ystem into the testing regimen, a hydraulic device that allows for simulation of both the rotational and bending loads that a wind turbine rotor places on a drivetrain.

“The non-torque loading system is what really sets this facility apart from other comparable test sites,” explained NWTC Dynamometer Project Manager Mark McDade. “This allows us to test the drivetrain system with the types of loads that it will see in a real-world application. It’s a very important feature for a test apparatus because the adverse impacts these types of loads can have on a system are significant.”

The system features a 6-MW motor, which provides the power to a turbine during testing. The motor turns at very high speed and low torque. The motor drives a gearbox, which transforms the output to the high torque and low speed that is appropriate for a wind turbine drivetrain. This provides the rotating loads on the test article. Add to this motorized torque testing the non-torque loading capability unique to the NWTC, and NREL is able to put a wind turbine drivetrain through the most realistic loading tests possible in a laboratory.

“These machines are expected to operate reliably in the field, often in harsh conditions, for 20 years or more,” Felker said. “The ability to comprehensively test these systems in the lab, to verify their reliability and performance before they go into service, is a critically important capability for the wind industry.”Read More

Alternative energy, Electricity, Smart Grid, Wind

UCR Harnesses the Sun to Power Education

Joanna Schroeder

University of California Riverside (UCR), who just announced they are hosting a solar summit on February 6, 2014, has unveiled plans for a large-scale 10.92 acre solar farm to be located on the West Campus. UCR is partnering with SunPower Corporation for the project that when completed sometime in July of this year, will generate nearly three megawatts of electricity. Back in 2009, UCR and SunPower worked with UC Merced to install a one-megawatt solar array.

“Three megawatts is about 30% of our base load on a daily basis. Our peak load is 17 or 18 megawatts,” Ken Mueller, director of Physical Plant Operations said. “This is a good start and the campus will use 100% of the power that we generate.”

UCR campussolarfarm2-356x237UCR signed a 20-year power purchase agreement (PPA) and site license agreement (SLA) that will allow SunPower to construct, operate and maintain the facility, and the university will purchase the power that is generated by the dozens of 435-watt solar panels that will track the path of the sun through the sky. Mueller said that UCR will spend about $350,000 on site clearing and preparation, as well as interconnections costs with the existing substation.

The projected savings to the university are estimated to be in the range of $4.3 million over the length of the contract. UCR will also receive carbon and LEED credits that provide additional financial and environmental savings.

When completed, the solar project will be the largest on any University of California campus and when combined with other solar power projects in Riverside, solar energy will generate nearly 40 percent of the city’s electricity needs. The solar project is one of many that UC campuses are undertaking to meet the university’s policy on sustainable practices that includes generating up to 10MW of on-site renewable power by 2014.

Mueller said that the university hadn’t previously utilized solar power on campus because it did not make financial sense.

“We have had very favorable electrical rates with Riverside Public Utilities, but recently the price of solar has come down to where it is competitive with that electrical rate,” Mueller said. “We will be getting the most cost-effective solar array on the market.”

Alternative energy, Education, Electricity, Solar

Texas Town to Get Biodiesel Plant

John Davis

txA 9-million-gallon-a-year biodiesel plant will soon be coming to Temple, Texas. This article from the Killeen (TX) Daily Herald says Thomas Biodiesel LLC will build the the $30 million refinery that will employ 30 full-time workers.

Thomas will manufacture biodiesel from waste cooking oils and other sources at the Temple plant. It is projected to generate 9 million gallons of biodiesel per year.

“With a design capacity of 9 million gallons per year of biodiesel, we are positioned to serve customers in this local market as well as the larger metroplex areas of Dallas, Fort Worth, Houston, Austin and San Antonio,” Thomas CEO Bill Burden said. “We are providing green jobs, and we are excited to partner with other progressive companies doing business here.”

The building permit still needs final approval from the Temple City Council.

Biodiesel

EPA Biodiesel Proposal to Impact RINs

John Davis

The proposal by the U.S. Environmental Protection Agency to cut the amount of biodiesel to be blended into the Nation’s fuel supply could have some pretty big impact on the Renewable Identification Number (RIN) situation in the coming year. In this piece in Biodiesel Magazine, the author looks at an analysis from the University of Illinois that shows how biomass-based diesel could be affected by what’s being proposed.
RINcarryover1
“[D4 biomass-based diesel] RIN generation has exceeded implied mandate needs for 2013 since March, following a pattern similar to that experienced under similar circumstances in 2011 as blenders provided incentives to increase biodiesel production to take advantage of a potentially expiring tax credit,” Paulson writes. “Assuming a D4 RIN generation level of 260 million gallons for December, total D4 RIN generation is estimated to exceed 2.65 billion gallons (1.77 billion biodiesel gallons) in 2013.”

[Nick Paulson, assistant professor in the University of Illinois Department of Agricultural and Consumer Economics] said generation of D5 RINs peaked during the summer, averaging 70 million gallons per month from June through September. D5 RIN generation fell to 35 million gallons in October and just 23 million gallons in November. Assuming 30 million gallons are generated in December, Paulson says total D5 RIN generation for 2013 is projected at just less than 568 million gallons.

The EPA proposal suggests stalling the biodiesel mandate at 1.28 billion wet gallons, or 1.92 billion RIN gallons, and slashing the total advanced mandate from 3.75 to 2.2 billion gallons. Paulson says there’s potential for 806 million total advanced (D3, D4 and D5) RIN carryover into 2014, all of which are D4 biomass-based diesel RINs (equivalent to 537 million gallons of biodiesel). While the statutory and proposed limits for D4 RIN carryover into 2014 are both 384 million RIN gallons (256 million biodiesel gallons), he says statutory limits of total advanced rollover would be 750 million RIN gallons, meaning “56 million advanced RINs may be rolled into 2014 but would have to be demoted for use towards the renewable component of the mandate…”

The piece goes on to say that the EPA has ignored that RIN stock levels should remain positive to allow for the flexibility the system was intended to provide, making the carryover of RINs bump up against the 20 percent rollover limit provision.

Biodiesel, EPA, RINS

AEC Criticizes “60 Minutes” Piece

Joanna Schroeder

60 MinutesSunday nights in America are famous for families sitting down and watching 60 Minutes. And while many people today may consider the news program “old school” millions of people still get their news from the show. This past Sunday night, 60 Minutes aired a piece, “The Cleantech Crash,” criticizing the Department of Energy’s investments in clean energy and the lack of advancement in advanced biofuels.

Brooke Coleman, executive director of the Advanced Ethanol Council (AEC), responded to the negative portrayal of the cleantech industry and biofuels in general. “By engaging in a petty game of ‘gotcha’ with Silicon Valley, ‘60 Minutes’ missed the point when it comes to government support for innovation in the energy industry,” said Coleman. “The U.S. government helps companies get over the hump with new technologies not because they expect to succeed in all cases, but because a small number of successes can fundamentally change the American economy for decades.”

“The Department of Commerce recently found that ‘technological innovation’ is linked to three-quarters of the country’s post World War II economic growth rate. And while implying that clean energy investments are just too costly for the American taxpayer, ‘60 Minutes’ forgets to mention that 75 percent of Department of Energy (DOE) Research and Development dollars have been spent on nuclear and fossil fuel development over the last 60 years,” Coleman continued. “The picture has not changed all that much recently with 50 percent of those funds dedicated to fossil fuels and nuclear over the last decade. Renewable energy received less than 17 percent of DOE R&D expenditures from 2001-2010.”

60 Minutes Cleantech CrashColeman said that Leslie Stahl and ‘60 Minutes’ also failed to point out why these programs are so critical to the clean energy sector. “These programs don’t exist in a vacuum. The federal government has helped the fossil fuel industry develop new technologies, build out infrastructure and make tax free investments for nearly 100 years. The energy space, particularly motor fuels, is not competitive and therefore will not get measurably more efficient and innovative on its own. If there is a story about questionable taxpayer engagement in the energy sector, it should be about why the U.S. taxpayer continues to fund innovation research at multi-national oil companies when we have supported them for a century with grants, loan guarantees, tax loopholes and direct expenditures. At this point the clean energy industry is used to myopic reports on government support for energy innovation.

Coleman concluded, It’s just too bad that ‘60 Minutes’ has joined the club.”

advanced biofuels, AEC, Clean Energy