Opinion: Biodiesel’s Biggest Foe? US Government

John Davis

KotrbaSo if you’re considering biodiesel opponents, you might think of the usual suspects led by Big Oil. But according to this piece by Ron Kotrba from Biodiesel Magazine, if you look at the history of the opposition, especially what has happened in the past week, the biggest roadblock to biodiesel could be the current U.S. government.

Then [Environmental Protection Agency]’s draft proposal was leaked in October, in which the agency proposed stalling the biomass-based diesel standard at 1.28 billion gallons and reducing the advanced biofuel target from the statutory requirement of 3.75 billion ethanol-equivalent gallons to 2.2 billion, and industry stakeholders wondered, could it be? Is this real? It didn’t make any sense. Some suggested the document was a fraud. Others suggested it was an old draft, perhaps not reflective of what EPA will actually propose. Others yet even speculated that EPA is intentionally attempting to squeeze out the small producers to simplify RIN tracking and accounting.

When the actual proposal came out last Friday, and it mirrored what the leaked draft indicated, you could literally feel the frustration and angst pour out of producers. I contacted several plants and stakeholders, and some of the things that were relayed to me were not fit for print, expressions that were wholly legitimate and understandable, but expletive. For industry reaction to the proposal, read my story here.

Isn’t it ironic that Big Oil’s own George W. Bush signs into law the legislation that sparks tremendous biodiesel industry growth, and the administration of Barrack Obama, the man who leveraged biodiesel so many times in his 2008 campaign, is attempting to crush it through this proposed RVO rule for 2014?

Kotrba encourages biodiesel producers and their allies not to play the victim, but send comments packed with facts to the EPA expressing their displeasure with the proposal. He concludes that there’s no good reason for this “backslide on biodiesel policy” when billions of dollars and tens of thousands of jobs, as well as a cleaner, more secure energy future are at stake

It isn’t right, and none of us should stand for it.

Biodiesel, Government, Opinion

Questions About EPA Authority for RFS Waiver

Cindy Zimmerman

coppessEven before the Environmental Protection Agency officially released its proposed 2014 Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS), questions arose about whether the EPA is overstepping its authority.

University of Illinois Clinical Assistant Professor of Law and Policy Jonathan Coppess, former counsel to the Senate Ag Committee and former administrator for USDA, says there is a legal argument to be made that EPA is stretching the definition of inadequate domestic supply in proposing a waiver based on the blend wall. “The entire intent of the statute was to increase production,” Coppess said during a media call today. “How does this unique or novel way of interpreting “domestic supply” fit with the intent Congress has for the overall statute?”

RFA-logo-13Coppess and Renewable Fuels Association President Bob Dinneen both stressed that no lawsuit has been filed against EPA’s proposal and they hope that will be unnecessary. “This is a proposal so there is no legal issue to litigate on,” said Dinneen. “We are hopeful that in the comment period, the agency … ultimately modifies the proposal to not include the blend wall in the waiver process.” Dinneen says they held the media call with Coppess to simply “tee up what the issues are” regarding the proposal.

Listen to or download the call with comments from Dinneen and Coppess here: PlayRFA Call on EPA Authority for RFS Waiver

Also, check out our recent DF Cast featuring an interview with Coppess on the issue.

Audio, Ethanol, Ethanol News, RFA, RFS

Kawa Completes Purchase of Conergy

Joanna Schroeder

Kawa Capital Management has completed the purchase of Conergy. Together with the closing of the transaction, Kawa appointed the new Conergy holding company Management Board. Alexander Gorski remains Chief Operating Officer (COO) and will take Kawa Logo copyover the position of the CEO Europe. Marc Lohoff will continue to be responsible for the Asian and Australian growth markets region as CEO Asia & Pacific. Anthony Fotopoulos, the former President of Conergy Americas was appointed CEO Americas and moves up to the Management Board which will strengthen the leadership team from own ranks. Lando Kravetz joins from the Kawa team and will take over the post of the Global Head of Business Development & Strategy within the Management Board.

“With the closing of the transaction, a new era starts for Conergy and its partners,” said Kawa Partner Andrew de Pass. “Conergy is very well positioned for the challenges of the future solar market with Kawa as the new owner: the company is financially powerful and has a new, strong balance sheet. Conergy will be among the most ‘bankable’ downstream solar players.”

DePass notes that through Conergy’s sales network, the company has a very strong footprint in all important global markets and is a more reliable and stronger partner for their customers than ever. The more so, he said, since Conergy and Kawa will be working on new funding and financing solutions as well as grid parity business models from which their customers will benefit globally. We are convinced we have a successful setup.

Dr. Philip Comberg joins new Board of Directors and will change from the Conergy Management Board and his position as CEO of Conergy AG to the Board of Directors of Conergy logoKawa Solar Holdings as of January 1, 2014. The Board of Directors includes Andrew de Pass (Partner Kawa Capital) and Daniel Ades (Managing Partner Kawa Capital). Alongside with Dr. Philip Comberg, David Nazarian (CEO Nimes Capital) and Albrecht Curt Reuter (Vice Chairman of the Board of Directors of Camargo Correa S.A.) join the board.

“We are very pleased that we managed to establish a very strong Management Board and Board of Directors. We ensure continuity and optimally merge profound knowledge in the photovoltaic industry with strong capabilities in funding and asset management. Kawa and Conergy perfectly match their complementary expertise in both areas,” added de Pass. “I particularly would like to thank Dr. Philip Comberg for his excellent achievements as CEO of Conergy. He navigated Conergy through very difficult times. Moreover, he was the driver of the transaction that we successfully closed now, whereby Conergy is one of the few German solar companies to emerge from insolvency in such a strong position. I am very happy to closely work with Philip in the future on the Board of Directors. Kawa is very thankful for Dr. Comberg’s contribution.”

Conergy will continue to focus on reliable, complete solutions for its international customers. These contain all necessary system components but also all related solar services. The North American region we will focus on both equipment supply and service delivery for their partners across our dealer network as well as project development, design and engineering of turnkey large-scale solar power plants.

Alternative energy, Electricity, Solar

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFNew speakers have been announced for the European Algae Biomass 2014 conference taking place in Seville, Spain May 6-7, 2014. The event will bring together around 75-100 senior executives from industry and academia to discuss the latest commercial and technical developments, challenges and research breakthroughs throughout the entire algae value chain. Registration is open and the Early Bird discount is available until Friday, November 29, 2013.
  • DEINOVE has announced that Jacqueline Lecourtier has agreed to chair and lead the deliberations of their Scientific Advisory Board (SAB), which meets twice a year. She will take her new position at the next plenary session of the SAB to be held on December 3-4, 2013. Lecourtier is an engineer from the French Higher National Institute of Chemical Engineering and a Doctor in Physics from the University of Pierre and Marie Curie, and has devoted 25 years of her career to the French Institute of Petroleum – New Energies.
  • Elevance Renewable Sciences, Inc. has introduced Renewicals, a breakthrough category of novel products, building blocks and ingredients that enable highe levels of performance. Elevance announced the new product category during Ecochem 2013, held Nov. 19-21, 2013 in Basel, Switzerland, encouraging industry to join the high-growth specialty chemicals company to develop sustainable products that perform better than current alternatives.
  • To kick start discussions ahead of the 9th annual World Bio Markets, Green Power Conferences is hosting a seven free one hour webinars covering topics across the entire bio-based value chain. Webinars begin in January 2014 and topics include: Plant Process Design and Optimisation; Advanced Biofuels; Bio-based Chemicals and Products; Sustainable Aviation; Trade and Market Dynamics; Strategic Finance & Investment; and Sustainable Feedstocks.
Bioenergy Bytes

Protect The RFS

Joanna Schroeder

There are events springing up around the Midwest to rally consumers into helping support the Renewable Fuel Standard (RFS). Some of the leaders of this movement are state legislators including Iowa Governor Terry Branstad along with Iowa Lt. Gov. Kim Reynolds have launched a new website in an effort to counter the Environmental Protection Agency’s (EPA) proposed reduction of 2014 blending requirements. The site, ProtectTheRFS.com, collects comments from citizens about the proposed changes to the Renewable Fuel Standard and sends them to the EPA.

Protect the RFS“Why the Obama administration would side with the big oil companies over Iowa’s homegrown renewable fuels is baffling,” said Iowa Governor Terry Branstad. “The EPA has turned its back on rural America, and our economy and family farms will suffer as a result. Corn prices have already dropped to the cost of production, and this will likely further squeeze corn producers and negatively impact income growth in rural America. We have more than 50 ethanol and biodiesel plants in Iowa, and these EPA reductions would negatively impact thousands of Iowa jobs. This debate isn’t over. I will lock arms with our agricultural groups, our family farmers, leaders from both parties, and Iowans in fighting for Iowa’s homegrown, reliable, and safe renewable fuels. I encourage Iowans to officially comment to the EPA.”

The Iowa RFS Coalition will host a “Defend the RFS” event at Lincolnway Energy to highlight the negative impact of EPA’s proposal to radically reduce Renewable Fuel Standard (RFS) levels for 2014. The event takes place on Friday, November 22, 2013 from 1-2 pm at Lincolnway Energy in Nevada, Iowa.

Part of the EPA’s proposed 2014 rules would lower the conventional renewable fuel requirement from the statutory level of 14.4 billion gallons (BG) to 13.01 billion gallons.  This change would decrease refiner and blender purchases of ethanol by $2.1 – $3.6 billion and would increase Big Oil revenues by the same amount. This, which petroleum supporters call a minor decrease, would have a significantly negative impact on the ethanol industry, agriculture and local communities.

Congresswoman Cheri Bustos (IL-17), a member of the House Agriculture Committee, immediately voiced her disapproval after EPA official released is proposed rule. “Today’s proposal from the EPA to reduce the amount of renewable fuels defies common sense.  Not only would this proposal hurt Illinois farmers, rural communities and our state’s economy, but it could also drive up prices at the gas pump and increase our dependence on foreign sources of oil. I’ll continue fighting for the health of our region’s economy and to keep our country safer and more secure by standing with both Democrats and Republicans in opposing this insensible proposal.”

Patriot Renewable Fuels, an ethanol plant based in Annawan, Illinois is also taking action. On Wednesday, November 27, 2013 Congresswoman Bustos will show her support by visiting Patriot for a roundtable discussion and tour.

Patriot is encouraging the industry as well as consumers to show their support as well by contacting legislators and let them know you are against this proposal. In addition, people can voice their opinion to the White House.

Biodiesel, biofuels, Education, Ethanol, RFS

E15 Now Available in Northern Illinois

Joanna Schroeder

E15, a blend of 15 percent ethanol, 85 percent gasoline, is now available in Rochelle, Illinois complements of the partnership between Illinois River Energy and the Rochelle Petro Travel Plaza.

E15 is approved by the Environmental Protection Agency (EPA) for vehicles 2001 and newer and is the most tested fuel in EPA approval history. It has been available for more than 16 months and driven over 45 million miles with no known cases of engine damage. DSC_0345According to data cited by the Renewable Fuels Association (RFA), ethanol is revitalizing rural communities and saved consumers on average $1.00/gallon at the pump in 2012 and 2013. It has created over 87,000 jobs while sustaining an additional 295,000 and has reduced America’s foreign oil dependence to 41 percent, compared to 48 percent without ethanol.

“Today’s launch of E15 is an example of local businesses coming together to help consumers. We are proud to offer drivers in Rochelle, and all of northern Illinois, another choice at the pump,” said Illinois River Energy Group CEO Rich Ruebe. “We encourage everyone with a 2001 and newer vehicle to come by the Plaza and check out the new fuel.”

Robert White, director of market development for RFA, said, “The E15 offering at Rochelle Petro Travel Plaza is another step forward in E15 use and expansion. I have seen firsthand the hard work and dedication from both Illinois River Energy and Rochelle Petro Travel Plaza to get E15 into the local marketplace. As more companies follow this example, we will see the expansion of E15 across the country.”

Ray Newton, general manager of the Petro Travel Plaza, said the of higher ethanol fuel blend, “The Petro Travel Plaza in Rochelle, Illinois is delighted to be the first retail location in Northern Illinois to offer motorists expanded fuel choice. With our grand opening celebration this week, motorists with any gasoline-powered 2001 and newer light duty car, truck, or SUV will have the choice to purchase a less expensive, higher octane, cleaner burning fuel, E15 containing 15 percent American-made ethanol, which is a better value than the traditional 10 percent ethanol blends.”

Illinois River Energy, owned by GTL Resources USA, Inc., will mark their seventh anniversary next month. Based out of Rochelle, Ill., the company employs over 60 local residents and what began as a 50 million gallon of ethanol facility grew into more than a 120 million gallon per year facility. The local community is vitally important to Illinois River Energy as they receive a majority of their corn from farmers within 40 miles of their processing facility. Additionally, Petro Travel Plaza – the largest full service plaza in northern Illinois – opened their doors in 1992. They offer high level ethanol blends including E85 (85 percent ethanol, 15 percent gasoline) and now E15.

biofuels, E15, Ethanol, RFA

Iowa Gov Launches Site to Boost Biodiesel, Ethanol

John Davis

protectrfsConsidering the fact that Iowa leads the nation in biofuels production, being a major player in the biodiesel and ethanol industries, it only makes sense the state’s governor launches an effort to protect the green fuels. This post from the Des Moines Register blog says Gov. Terry Branstad launched a new website to oppose the U.S. Environmental Protection Agency’s proposal to roll back Renewable Volume Obligations (RVOs) – how much biofuel is blended in the nation’s fuel supply.

The new site is www.ProtecttheRFS.com. Leaders say the website was built without state funds.

“The EPA’s ruling to slash the RFS will have a negative ripple effect through the American economy,” Branstad said. “The result of this proposed rule change would mean corn prices would plummet below the cost of production, loss of jobs and increased dependence on foreign oil. Concerned citizens cannot sit on the sidelines and wait for the comment period to open. Now is the time to defend and protect the RFS.”

ProtectTheRFS.com will allow visitors to sign a petition urging the EPA “to reverse its ill-advised rule aimed at eroding the RFS,” Branstad’s office said.

Though the official comment period hasn’t opened yet, Branstad and [Lt. Gov. Kim] Reynolds said “it’s critically important for Americans to speak up now to push back on the EPA’s ruling.” The comments submitted to ProtectTheRFS.com will be sent the EPA prior to the closing of the comment period.

Iowa has seen great job growth over the past few years, thanks in large part to the biodiesel and ethanol industries. State officials are worried the EPA changes will hurt that positive economy.

Biodiesel, Ethanol, Ethanol News, Government

Biodiesel Board Picks New Leadership

John Davis

nbbboardNew leadership is in charge of the National Biodiesel Board (NBB). During the group’s membership meeting yesterday in Washington DC, members voted to fill eight positions on the 15-person board, and new officers were elected.

“The biodiesel industry is on pace for record production in 2013 but the challenges facing this industry are significant,” said new NBB Chairman Steven J. Levy (seated in the center of the picture). “I am optimistic about our future as we face those challenges with a strong and diverse trade association membership united for the good of the industry, consumers, and the general public.”

Dozens of biodiesel stakeholders from across the country met with leaders on Capitol Hill on the Renewable Fuel Standard (RFS) and to voice strong disappointment with the Obama Administration’s recent proposal for next year’s renewable fuels volumes.

Officers elected to lead the board are: Chairman, Steven J. Levy; Vice Chairman, Ron Marr; Treasurer, Mike Cunningham; and Secretary, Greg Anderson.

New elected governing board members include: Todd Ellis, Imperium Renewables; Kent Engelbrecht, ADM; Gary Haer, Renewable Energy Group; Ed Hegland, Minnesota Soybean Research & Promotion Council; Ron Marr, Minnesota Soybean Processors; Bob Metz, South Dakota Soybean Research & Promotion Council; Robert Stobaugh, Arkansas Soybean Promotion Board; and Ed Ulch, Iowa Soybean Association

Those continuing to serve on the governing board include: Greg Anderson, Nebraska Soybean Board; Jennifer Case, New Leaf Biofuel, LLC; Mike Cunningham, American Soybean Association; Brandon Foley, Sanimax Energy; Steven J. Levy, Sprague Operating Resources LLC; Timothy Keaveney, HERO BX; and John Wright, Owensboro Grain Company.

Biodiesel, NBB

Biodiesel Booth at NAFB Talks Food & Fuel

Cindy Zimmerman

nafb-nbbBiodiesel producers had plenty to talk about … and plenty of ears to listen … during the recent National Association of Farm Broadcasters (NAFB) meeting in Kansas City. Makes sense, when you consider how connected the farming and biodiesel industries have been over the years. We caught up with two folks from the National Biodiesel Board at the group’s booth at NAFB: NBB Economist Alan Weber and NBB board member Greg Anderson.

Speaking before the EPA had officially released its lowered Renewable Volume Obligation (RVO) numbers, Alan said the proposed numbers of 1.28 billion gallons for next year, when the industry is approaching 1.7 billion gallons this year, would significantly hurt the 60,000-job biodiesel industry.

“That movement backwards would actually be about 8,000 jobs in the U.S. that we would lose and all that ripple effect throughout the economy,” he said, pointing out that biodiesel is the first commercially available advanced biofuel, getting the job done now.

“There’s a lot of unique alternative fuels out there. We can talk about electricity and hybrid electrics, but when we start thinking about how we move products in the United States, it’s going to be in diesel-powered, class-A over-the-road trucks, powered by a liquid biofuel. And that’s where biodiesel fits in.”

PlayInterview with Alan Weber, NBB economist

Some of the knocks against biodiesel have come from falsehoods spread about how it is hurting livestock producers. Greg, who is a soybean farmer and livestock producer from Nebraska, said just the opposite is true as the soybean meal produced during the crush to get the oil actually enhances the livestock market.

“It works well together. It adds about $12 for every beef carcass, about $1.25 for pork and a few cents for each chicken. It all adds up. We see the value in biodiesel in lowering soybean meal prices, conservatively $25 a ton less. If biodiesel wasn’t there, it’d be more expensive to purchase and higher input costs for those folks to feed,” Greg said.

He also pointed out that while the soybean oil makes up about 19 percent of the bean, right now, because of biodiesel, it’s represents 40 percent of the bean’s value, producing food and fuel.

“We’re not only feeding America, but we’re fueling America.”

PlayInterview with Greg Anderson, NBB board member
Audio, Biodiesel, NBB

Ethanol Groups Talk to Farm Broadcasters

Cindy Zimmerman

Ethanol was well represented at the National Association of Farm Broadcasting annual meeting last week in Kansas City to talk with reporters about issues facing the industry.

narfb13-rfa-groupBob Dinneen, Robert White and Dawn Moore with the Renewable Fuels Association (RFA) did a number of interviews with farm broadcasters about important topics, like the growth in the number of stations offering 15 percent ethanol blended fuel (E15).

Robert said they have some good news to report.

“In the matter of just a couple of weeks we’ll have E15 in 11 states, roughly 50 stations, and lots in the hopper,” adding there’s high interest among gas station operators, especially the small businesses, in expanding the amount of E15 to be sold. “E15 is averaging over 20 percent [in volume at stations], and one station is averaging 38 percent in E15. And you couldn’t have convinced me of that two years ago that was going to happen that quickly.”

Robert also dismisses Big Oil’s arguments that E15 is causing massive amounts of misfueling, stranding cars by the side of the road.

“After 18 months of E15 being in the marketplace, we haven’t had one incident of misfueling, we haven’t had one check-engine light come on, [not one] issue with a vehicle, lawnmower, etc.” PlayInterview with Robert White, RFA

nafb13-growth-buisOne of many interviews Growth Energy CEO Tom Buis did at NAFB was with Julie Harker of Brownfield Ag News.

Speaking before the EPA released its proposal to lower Renewable Volume Obligations (RVOs), Tom said that would be a huge mistake.

“It’s a mistake not just for rural America and the ethanol industry and America’s farmers, but for our Nation,” pointing out how beholden we have been to Middle East oil over the past 40 years, including lost fortunes guarding oil tankers and lost American lives in war. “Moving backwards would be for the wrong reasons at the wrong time.”

Tom said the oil companies’ attacks are understandable; ethanol is cutting into their monopoly, adding preserving that 10 percent blend wall is key to the Big Oil’s strategy.

“They’ve got 90 percent of the market. They don’t want any less. Well that’s not good for America, it’s not good for energy security or national security,” concluding that consumers are saving about $10 billion a year at the pump. “Let the consumer make the choice at the pump.” PlayBrownfield Interview with Tom Buis, Growth Energy

Audio, E15, Ethanol, Ethanol News, Growth Energy, RFA