Biodiesel Feedstock Palm Oil to Rebound in 2014

John Davis

cargillpalmThe past year was a pretty tough one for biodiesel feedstock palm oil, but traders are expecting it to rebound in 2014. This story from the Malaysia Star says overproduction and anti-palm oil campaigns in some countries took their tolls, but there are some real positives on the horizon for palm oil and, consequently, biodiesel.

The Indonesian government recently set a higher requirement for a 10% palm oil biodiesel blend, up from 7.5% previously, that will lead to more CPO feedstock needed for biodiesel production in the republic, hence prompting lesser CPO to be exported for the world market.

Malaysia too is pushing hard for the nationwide implementation of its B5 biodiesel programme by July 2014. At the same time, the Government is also studying the possibility of introducing higher blends – B7 and B10 biodiesel – in the foreseeable future.

The B5 biodiesel is a blend of 5% palm oil or palm methyl ester with diesel fuel.

The full implementation of B5 nationwide for the subsidised and non-subsidised sectors will also see about 500,000 tonnes per year being taken up from the current local palm oil inventory.

This could effectively reduce the domestic palm oil stocks to below one million tonnes, and also, the palm biodiesel initiative could provide a floor price to support CPO prices at RM2,000 per tonne.

Some traders do warn that the Southeast Asian countries’ biodiesel mandates will only be effective if palm oil prices stay competitive with crude oil.

Biodiesel, International

First Wind Supports Local Teachers

Joanna Schroeder

First Wind is supporting local teachers for the third year through its partnership with DonorsChoose.org. The program was developed to enhance the value of the company’s financial contributions in communities where they have wind projects. During 2013, the company will award $15,000 to teachers for educational efforts.

Through DonorsChoose, First Wind supports teachers and their innovative classroom projects in its communities that include Sheffield and Lyndonville, Vermont; Danforth, Maine; Beaver, Utah; Boston, Massachusetts; Kahuku, Hawaii; Tekoa, Washington; and other communities.

“As we continue to grow, First Wind is committed to being an active community member and we want to help support innovative and exciting educational projects in our host First Wind Kidscommunities,” said Carol Grant, Senior Vice President of External Affairs at First Wind. “This program starts with the good idea of a teacher in one of our communities. Our contribution is to support that idea and help bring it to life. We’re glad to have a small part in helping these inspiring teachers and their students.”

In its second full year, First Wind funded 43 projects at 31 schools, which reached and positively touched nearly 2,600 students. For example, First Wind donated funds toward a project to supply graphing calculators for a pre-calculus classroom in Mars Hill, Maine, which is near the Mars Hill project. First Wind also donated funds to a classroom in Cedar City, Utah, which is near the Milford Wind projects, to help the classroom purchase books to implement the S.T.E.A.M. program (Science & Technology interpreted through Engineering & the Arts, all based in Mathematical elements).

The recipients of the funds have been publicly grateful to First Wind. “Thank you so much for your donation. Our school has limited funding, especially for anything in addition to what is required,” said Mrs. Heidi Thomas of Milford Elementary School in Milford, Utah who wrote the response on the First Wind DonorsChoose webpage. “Your donation makes it possible for the students in my classroom to experience their learning hands-on. This allows students to deepen their knowledge and understanding of the curriculum. Once again, thank you so much for your support of our school and the vision to create a better future generation.”

Alternative energy, Education, Electricity, Wind

New York Shines with Solar Support

Joanna Schroeder

The state of New York is a shining example of what solar support can do for the industry. NY Governor Andrew M Cuomo recently announced the additional commitment of $108 million in funding over the next two years for the his NY-Sun initiative. The funds cover for residential and commercial solar energy projects and bring the two-year budget to $216 million for the New York State Energy Research and Development Authority (NYSERDA).

Long Island Solar Farm“Solar power is critical to making our environment healthier and our energy system more resilient,” said Governor Cuomo. “The funding approved today will expand the use of clean, renewable power across New York State and ensure we continue to be a national leader in solar energy. Today’s announcement highlights the ongoing success of NY-Sun, attracting the economic benefits of a vibrant solar industry, creating more jobs, and reducing our dependence on fossil fuels.”

Governor Cuomo launched the NY-Sun initiative in 2012 in an attempt to increase the amount of solar power installed each year in New York State. Since its inception, the NY-Sun initiative, which brings together and expands existing programs administered by NYSERDA, New York Power Authority (NYPA) and Long Island Power Authority (LIPA), has installed or funded development for a total of 299 megawatts of solar photovoltaic capacity. This is more than was installed in the entire prior decade.

The funding was approved by the Public Service Commission (PSC) and Chair Audrey Zibelman said of the decision, “The Commission recognizes the substantial opportunities that solar power offers residential and commercial customers to reduce electricity bills and improve the environment. We fully support the solar power goals set by the Governor’s NY-Sun initiative.”

With this decision, the PSC authorizes NYSERDA to plan a transition of its current solar programs to a regional megawatt block structure that includes a longer-term schedule for incentive rebate levels that change according to a predetermined set of targets. In essence, as more solar megawatts are installed, the per-megawatt rebate level falls. Also, as part of this transition, NYSERDA will continue to set aside $30 million to increase solar installations in the downstate regions. The remainder of the $108 million will be allocated based on regional budgets and market conditions.

“At a time when many of our political leaders are failing to address the need to transition to clean energy sources, Governor Cuomo continues to position New York as a leader in solar energy,” said Shaun Chapman, president, New York Solar Energy Industry Association. “Through the NY Sun Program, which the Public Service Commission has responsibly acted upon, our industry is now empowered to deliver jobs and clean, low cost, renewable energy to all New Yorkers.”

Alternative energy, Electricity, Solar

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFPanda Power Funds has announced that it has completed the acquisition and successful financing of Moxie Energy’s planned 829-MW natural gas-fueled, combined-cycle “Patriot” generating station, located in Lycoming County, Pennsylvania. When completed, the Patriot project will be the second new power plant in the Keystone State — after Panda’s “Liberty” power plant — specifically developed to take advantage of its proximity to the Marcellus Shale. Panda will immediately start construction on the 85-acre site and expects commercial operations to begin by the middle of 2016.
  • ReVision Energy has flipped the switch on solar panels atop Churchill Rink and the Durham Police Station (New Hampshire), and both have begun generating power. In addition, a solar array on the Durham Public Library has been online for several weeks. The Churchill Rink solar project includes 390 panels on its south-facing roof capable of producing 99 kW of electricity. The 20-panel array at the police will produce about 5.5 kW and the 60 panels on the library will generate 15 kW.
  • According to a new report from Navigant Research, worldwide sales of Stop Start Vehicles (SSVs) will grow from 8.8 million in 2013 to 55.4 million in 2022. SSVs, which eliminate idling by shutting off the engine when the vehicle is stationary and restarting it automatically when it is time to move. The report, “Stop-Start Vehicles”, analyzes the opportunities and challenges present in the global market for light duty SSVs, also known as micro hybrids, idle stop vehicles, and a variety of other names branded by automakers, and examines stop-start component systems, including the technologies used for energy storage.
  • According to several news reports, Benton County Wind farm, located in Northern Indiana, is suing Duke Energy Indiana for breach of contract. The owners of the wind farm say Duke signed a contact to purchase the wind energy produced from the wind farm but hasn’t done so, causing a lost of output and revenue. When Benton County Wind Farm became operational in 2008, it was the first commercial-scale wind farm in Indiana.
Bioenergy Bytes

Cogeneration Explained

Joanna Schroeder

WASILENKOFF headshot-1The country is beginning to hear a lot about cogeneration, or cogen, but what it is exactly? How is it different, then say, a traditional electricity plant? To get the low-down on cogen I spoke with Chad Wasilenkoff, CEO of Fortress Paper whose company has been working with cogeneration and recently put its first cogen project online.

Q: Can you explain how cogeneration is different than a traditional electricity plant? For example, “wind” can provide power to the grid but is not considered cogen.

A: Wind will run a turbine and produce electricity similar to cogeneration. The difference is cogen also produces energy mechanically with steam to turn the turbine but also uses the thermal energy produced in the industrial process for additional energy needs. In conventional systems the heat is an unused byproduct of energy production. Cogen can also uses waste material as the energy source and in our case residual biomass from the paper making process.

Q: Obviously, cogeneration is not a new idea. Why do you think there is such a small rate of adoption/use of cogeneration in North America?

Cogen OutsideA: Cogeneration plants are capital intensive and the costs involved have to be balanced with the costs of other energy sources in the area. For industrial installations cogen works well for operations that use a lot of power, steam and heat. Cogen also tends to be more suitable in areas where the heat can be utilized. An example is Denmark where some cities get 95 percent of heat from cogeneration sites. There are also some small scale cogeneration units on the market for the individual homeowner.

Q: The potential for cogeneration is quite large. For cogen to reach its full potential, what would need to happen? Would there need to be legislation, tax credits, etc?

A: Yes assistance with financing, preferential pricing tax credits etc. would all help cogen to reach its full potential. Cogeneneration is already part of many plans for expanding renewable energy, According to the International Energy Agency (IEA).

Q: Fortress Paper has made a significant investment in cogen at your Fortress Speciality Cellulose Mill in Thurso, Québec where you have constructed a cogen facility. Can you give the readers of DF more information about this project?

A: The Fortress Specialty Cellulose mill capex for the Cogen Plant was over Canadian $120 million and included a new turbine and generator with cooling tower and condenser, new biomass boiler, and new water treatment system among other items.Read More

Alternative energy, bioenergy, biomass, Electricity

Biodiesel Production, Imports Records for October

John Davis

eiaThe U.S. produced a record amount of biodiesel in October, and it imported a record amount during the same time as well. The Energy Information Administration (EIA) reports biodiesel production hit 132 million gallons during the month, up from around 127 million gallons in September. And this article from Biodiesel Magazine says the U.S. imported more than 46 million gallons of biomass-based diesel in October, up from 28.7 million gallons in September, and more than tripling August volumes of more than 15 million gallons.

Nearly half of October’s U.S. biomass-based diesel imports came from Argentina, representing 23 million gallons. Imports from Indonesia came in distant second at around 8.5 million gallons, followed by biodiesel from Germany, totaling slightly more than 6 million gallons. Argentina and Indonesia have been effectively shut out of the European market as a result of provisional antidumping duties imposed by the European Commission this spring. Definitive duties, lasting five years, were put into place in November. Argentina has filed a formal complaint with the World Trade Organization, but the two biodiesel exporting nations have been steadily increasing exports to the U.S. since being shut out of the EU market.

The EIA says U.S. biomass-based diesel exports in October totaled 22.5 million gallons, but the agency lists exports to specific countries only at 17 million gallons. The U.S. shipped nearly 10 million gallons to Malaysia, more than 3.5 million gallons to Spain, more than 2.5 million gallons to Canada, and less than a million gallons to Taiwan and Australia combined.

Biodiesel exports were also up during October, totaling 22.5 million gallons, up from September’s export volumes of 15.9 million gallons.

Biodiesel, Government

Wind Tax Credit Set to Expire

Joanna Schroeder

The wind energy tax credit is set to expire tomorrow and unlike last year, there has been virtually no noise from the wind energy industry on the need to save the Production Tax Credit (PTC). In January 2013 Congress extended the tax credit for one year but single wind turbine Photo Joanna Schroederstructured the credit different in the past. Could this be the reason there has been all but silence from the industry on its expiration?

Heading in the the third and fourth quarters of 2012 wind supporters claimed that if the tax credit expired, the industry would all but halt. However this argument has not been heard this year.

While speculation, it could be because when the tax credit was restructured for 2013, it said that a project only has to be in construction by the end of 2013, not completed to qualify for the PTC. But it wasn’t until September of 2013 that the IRS (Internal Revenue Service) released rules that defined a project “in construction” if the project developer has incurred 5 percent of the total capital costs. In addition, the IRS guidelines also stipulate that all the wind turbines for a project must be delivered to the project site by April 15, 2014 and the wind farm must be in operation by December 31, 2015.

Under this structure, the wind industry should remain strong through 2015 and this past month, many companies have announced their wind farm projects have entered the “construction phase”.

According to the American Wind Energy Association (AWEA), during the forth quarter at least 27 requests for proposals were issued with an estimated 4,175 MW of new wind energy to be generation upon completed. Looking further ahead, reports AWEA, 5,600 MW of new wind projects have secured long-term contracts, and another 1,900 MW have received state regulatory approval.

Screen Shot 2013-12-30 at 12.33.55 PMSo how is 2013 shaping up for the wind industry? AWEA reports that American wind energy will finish 2013 with strong momentum for installations in the new year according to the U.S. Wind Industry Third Quarter 2013 Market Report. The industry experienced a painful slowdown at the beginning of 2013 as result of the scheduled expiration of the federal wind energy PTC at the end of 2012, but has now rebounded. However, says AWEA, lack of certainty over federal tax policies continues to keep wind energy from reaching its full potential in the United States.Read More

Legislation, Opinion, Wind

IA Senate Candiate Mark Jacobs Fights for RFS

Joanna Schroeder

US IA Senate Candidate Mark JacobsIowa U.S. Senate candidate Mark Jacobs has submitted comments to the Environmental Protection Agency (EPA) on the proposed changes to the Renewable Fuel Standard (RFS). The EPA has proposed to reduce the amount of renewable fuels used in the U.S. transportation fuel supply for 2014. Jacobs wrote:

Dear President Obama and EPA Administrator McCarthy:

I am deeply concerned that the proposal to reduce the amount of renewable fuel we use under the Renewable Fuel Standard (RFS) will negatively impact jobs and economic growth in my home state of Iowa as well as other states.

In addition, the proposed changes will result in reduced consumer choices and higher prices at the pump across the country. Ethanol has demonstrated that it can compete head-to-head with petroleum products on an economic basis. Today, however, the oil industry exerts significant influence and control over the distribution of transportation fuels, and the RFS is essential to help level the playing field for alternative sources of energy.

We need reliable, affordable energy that is developed in an environmentally responsible way. Increased energy production in America can add thousands of new jobs and help keep energy prices low for all Americans. Low energy prices, in turn, help drive growth in other sectors of the economy. Renewable energy sources can continue to play an important role in this regard. The development of the renewable fuels industry has been one of the great success stories in America, and it has helped us reduce our dependence on foreign oil.

In Iowa alone, the renewable fuel industry supports 60,000 direct and indirect jobs. Most of these jobs are located in our rural communities. Reducing the amount of renewable fuels means replacing it with more oil. Studies have shown that this proposal would result in several billion dollars of additional cost for consumers. Moreover, the U.S. has a stated policy of enhancing our national security by reducing our dependence on the Middle East. Over the last seven years, our dependence on foreign oil has dropped from over 60% to just over 40%. The development of the renewable fuel industry has played a significant role in this improvement.

The RFS has been under attack recently. I would encourage our policymakers to look beyond the rhetoric and carefully consider the facts. Without the RFS, our nation’s transportation fuels market will be left as a petroleum monopoly, with prices subject to the whims of geopolitical events. American families will be denied sensible fuel alternatives and our economy will be denied precious, good-paying jobs. We must protect the RFS. In the case of renewable fuel, what’s good for Iowa is also good for American consumers.

Mr. President and Administrator McCarthy, I respectfully ask that you do what’s right and stand up for everyday Americans and protect the current RFS.

Biodiesel, biofuels, EPA, Ethanol, RFS

World Energy Center Heeds Call for Renewable Energy

Joanna Schroeder

The Southern California-based World Energy Center is reporting that it has heeded and exceeded President Obama and Vice President Joe Biden’s call for the use of renewable electricity. The administration has called, as part of its “new energy plan” for America, to develop and use 25 percent renewable electricity by 2025. This will spur clean energy jobs, says the Obama administration as well as reduce greenhouse gases and other sources that lead to climate change.

img_energy-center-mapThe World Energy Center is comprised of more than 30 companies, cities, colleges, participants’ partners and affiliates. Larry Hales with Hales Global Group has been providing consultant business development services and says the World Energy Center is the nation’s leading clean energy nerve center in North America. The Center collaborates with multiple companies to develop the most technological advanced renewable energy projects with the goal of spurring clean energy innovation and creating a commercialization Hub to reduce the cost of clean energy and accelerated its worldwide deployment.

World Energy Center aims to create more new jobs and further economic growth says President and COO, Michael Reich, “With billions being spent on new construction projects, long-term manufacturing, engineering, maintenance and management jobs, ancillary growth and service jobs, manpower will be needed for us to succeed. We need to create green job training facilities, educational programs and a number of diversified renewable energy projects will be brought online.”

The World Energy Center and its collaborative group of partners expect to build out more than 5,000 Megawatts of solar, geothermal, wind, natural gas and other clean energy projects over the next 15 years. Reich said the Center will position the United States as a leader in low cost renewable energy, create tens of thousands of green jobs and educate the next generation of young Americans keeping pace with President Obama’s goal and Energy Secretary Dr. Moniz’s mandate.

Ian Campbell, senior lobbyist with Manchester Associates noted that World Energy Center is extremely efficient at Photovoltaic, PV, converting sunlight into electricity. “We are building on the development of applicable PV affordable solar renewable clean energy which was born in 1979, and today with support from private and public partners, the price of PV systems has fallen in half; however, maintaining such a viable U.S. clean technology industry will require policy makers to advance energy subsidies that will lead to improvements in technology and lower prices.”

Alternative energy, Clean Energy, Geothermal, Natural Gas, Solar, Wind

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFChina Sunergy Co., Ltd. has announced that it has completed the sale of a solar farm project to Lightsource Renewable Energy Ltd., which is a UK solar energy generator. The solar project, located in the southwest of Cornwall in the United Kingdom (UK) was connected to the grid at the end of March of this year and now generates enough local green electricity to power over 1500 households.
  • Dominion has announced it has begun commercial operations at its Dominion Bridgeport Fuel Cell facility located in Bridgeport, Conn., and the Dominion Somers Solar Center located in Somers, Conn. Together, the two facilities produce approximately 20 megawatts of clean energy for the people of Connecticut, enough power for approximately 20,000 homes.
  • The full agenda has been announced for the International Biomass Conference taking place in Orlando, Florida March 24-26, 2014. The General Session will be a “state of the industry” and include speakers from several national biomass associations.
  • RGS Energy has joined forces with Green Lantern Capital to co-develop seven solar projects totaling 4.5 megawatts (MW) in Vermont. RGS Energy will design, install, monitor and maintain the solar power systems. The company expects to begin construction in summer of 2014 and complete it by November. On an annual basis, the solar power systems will be designed to generate more than 5.3 million kilowatt hours of electricity.
Bioenergy Bytes