AP Story Fact Checking

Cindy Zimmerman

apA yet-to-be officially published “investigative report” by the Associated Press is causing an uproar in the ethanol industry which is responding ahead of time with fact checking on the article.

The article included interviews with several industry leaders and farmers who are disturbed by what they have read in advance copies. One of those interviewed at length by the AP reporter is Renewable Fuels Association president and CEO Bob Dinneen.

ethanol-report-adIn this “Ethanol Report,” Dinneen challenges many of the reporters’ conclusions about the environmental impact of ethanol production. Ethanol Report on AP story

RFA Counterpoint Fact Sheet on AP story

Later today there will be a conference call with Geoff Cooper, the head of research and analysis at the Renewable Fuels Association, and Leroy Perkins, an Iowa farmer who was quoted in the AP story. Perkins was interviewed numerous times by AP journalists for the ethanol story and “believes his views on oil alternatives, land use and the environment were intentionally skewed to tell an inaccurate and one-sided story.”

Subscribe to “The Ethanol Report” with this link.

Ethanol, Ethanol News, Ethanol Report

Largest Solar Plant in Japan Launched

Joanna Schroeder

A 70 megawatt (MW) solar power plant in Kagoshima Prefecture, southern Japan has come online. The Kagoshima Nanatsujima Mega Solar Power Plant went online officially on November 1, 2013 and is being operated by a special purpose company established by Kyocera Corporation and six other companies to sell the electricity to a local utility under Japan’s feed-in-tariff (FIT) program. An inauguration ceremony was held recently to celebrate the country’s largest utility-scale solar power plant.

70MW Solar Power Generating System 1Following the Great East Japan Earthquake in March of 2011, interest in solar energy has risen as a viable way to resolve power supply issues. To help promote the use of renewable energy, the Japanese government launched a restructured FIT program in July 2012 which mandates that local utilities are required to purchase 100 percent of the power generated from solar installations of more than 10 kilowatts (kW) for a period of 20 years.

Kagoshima Mega Solar Power Corporation was established by Kyocera and six other companies in July 2012 to explore a new business model for utility-scale solar power generation. Under a financing plan devised by Mizuho Corporate Bank, the new company was tasked to develop and operate the 70MW solar power plant on land owned by IHI Corporation with the power generated to be purchased by Kyushu Electric Power Co. based on the FIT program. As the largest shareholder of the new company, the Kyocera Group was responsible for the supply of solar modules as well as part of the construction, and will also undertake maintenance of the system with Kyudenko Corporation.

In addition, a tour facility has been built adjacent to the 70MW plant that is open to the public and features a circular viewing room where visitors can observe the 290,000 solar panels from an elevated vantage point and enjoy the view of the ocean bay and grand Sakurajima volcano in the background. Display zones for visitors such as students and tourists provide information about environmental issues and the science behind photovoltaic energy generation.

Alternative energy, Electricity, International, Solar

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFIKEA has announced plans to nearly double the solar array atop its Perryville, Maryland distribution center, the state’s largest such solar energy system. Installation of the new panels will begin this month with completion expected after the New Year. The 467,618-square-foot solar addition will consist of a 2.2-MW system, built with 7,337 modules, and will produce 2,695,355 kWh of electricity annually for the facility. Including the existing system, this distribution center’s total 4.9-MW solar installation of 25,913 panels soon will generate 6,092,533 kWh of clean electricity yearly.
  • Dyadic International has announced that it has been issued U.S. Patent No. 8,551,751 B2 entitled, “BX11 Enzymes Having Xylosidase Activity” by the United States Patent and Trademark Office. The invention relates to methods of developing and producing novel enzymes, more specifically for the development of a variety of fungal enzymes. Also described in the patent is the encoding of nucleic acid molecules for such enzymes, compositions, recombinant, and genetically modified host cells, and methods of use, and also addresses methods to convert lignocellulosic biomass into fermentable sugars with enzymes that degrade the lignocellulosic material and novel combinations of enzymes, including those that provide a synergistic release of sugars from plant biomass.
  • First Power and Light, LLC (FPL) has signed a Letter of Intent to acquire SolPower Renewables, Inc. a Florida corporation in a stock only transaction. SolPower sells Engineering, Procurement and Construction (EPC) services in Florida, South and Central America as well as the Caribbean. FPL intends for SolPower to operate as a wholly owned subsidiary allowing it to maintain its focus on these geographic areas that are not currently serviced by FPL.
  • Ennovor Biofuels has appointed a new chairman, managing director and plant manager. Chairman John Markham will take responsibility for guiding the strategic development of the business. David Frohnsdorff has been appointed managing director to coordinate all aspects of the company’s production, sales, feedstock development and purchasing, as well as fund raising and infrastructure development for the group. New plant manager David Jackson will manage plant operations.
Bioenergy Bytes

Blenders’ Credit Helps Biodiesel’s Bottom Line

John Davis

FutureFuel1Another biodiesel producer is showing a pretty good bottom line compared to last year’s figures. On the heels of last week’s report from Renewable Energy Group (REG) of its record-setting third quarter, FutureFuel Corp. shows a similarly strong period as well. The St. Louis Business Journal reports FutureFuel has third-quarter net income of $15.3 million, up 22 percent from the prior-year period, thanks to a recovered biodiesel industry helped by the $1-a-gallon blenders’ credit.

The company reported revenue of $121.1 million, up 37 percent from the prior-year period.

Revenue from biofuels was $77.4 million, up 61 percent from the prior-year period. That revenue accounted for 64 percent of total revenue in the third quarter of 2013 as compared to 54 percent in the third quarter of 2012.

Sales quantities in the third quarter also increased due to the reinstatement of the federal blenders’ credit in January compared to the third quarter of 2012 when the blenders’ credit was not available. Both the $1 biodiesel blenders credit and agri-biodiesel production credits are set to expire on Dec. 31.

“The record performance resulting from strong margins in the biofuel segment and continued solid performance from our chemical segment is gratifying,” FutureFuel President Lee Mikles said in a statement. “Like the rest of the biofuel industry, we realize the importance that continued support from our legislatures in the Renewable Fuel Mandate and the federal blenders’ credit has on our biodiesel business.”

FutureFuel Corp. makes custom and performance chemicals and biofuels.

Biodiesel, Government

U.S. Electricity Mix is Changing

Joanna Schroeder

According to the most recent Today in Energy published by the U.S. Energy Information Administration (EIA), the mix of fuels used to generate the electricity in homes, factories and businesses across the U.S. has changed over the past few years. While coal remains in the lead, with all the grassroots efforts around ending coal use and as a result the decommissioning of coal plants across the country, the fossil fuel has lost share to other players including natural gas and non-hydroelectric renewables such as wind and solar.

Regional Electricity Use mapThe report show that the generation mix is not uniform across the country and varies significantly by region (EIA has divided the country into seven regions) depending on available resources and regional market prices. There are several factors that affect fuel mix in any given month including the region’s capacity, the delivered costs of fuels and system constraints.

Natural gas has gained market share from coal in much of the country, find the report, but this is less true in markets closer to the cheaper Powder River Basin coal in the West. Renewable sources are generally growing, especially in Texas and the West. Petroleum-fired electricity generation has been declining for several decades, but it can continue play an important role at rare times when other alternatives are not available.

EIA is planning on publishing a series of articles focused on each region and its electricity generation mix over the coming weeks.

Alternative energy, Electricity, Hydro, Solar, Wind

National Grid Salutes Veterans

Joanna Schroeder

Today is Veterans Day in the United States where the country comes together to thank those Americans who have risked or given their lives to keep the country safe. In recognition of this day, National Grid is highlighting its programs to attract and retain veteran employees including it participation in Troops to Energy Jobs. The program is an initiative in which National Grid has partnered with five other energy companies across the country, and the Center for Energy Workforce Development, to develop an accelerated process for bringing military veterans into the energy industry workforce nationwide.

National Grid’s pilot program for Troops to Energy Jobs took place in Massachusetts, and employing veterans in the state remains a top priority for the company.

Troops-to-Energy-Jobs-logo“National Grid, along with other electric and gas companies, recognizes that veterans have spent their military careers protecting national security and are, among many things, battle-tested, self-motivated and safety-conscious—traits that translate well into a second career in the utility industry,” said Marcy Reed, president of National Grid in Massachusetts. “By hiring veterans into the company, we are ensuring the continued production and delivery of safe, reliable power to Massachusetts homes and businesses, and that service members are continuing to protect national security as they work to deliver a product that fuels our lives and powers our economy.”

In recent years National Grid said it has taken several steps to improve its opportunity for veteran outreach, including creating a dedicated veterans outreach specialist role within the company. This integrated specialist is responsible for veteran recruiting efforts and assists veterans as they transition into civilian positions within the energy field.

“Hiring veterans is a smart business decision. But, beyond that, it’s about pride and opportunity,” said Steven Spaeth, veterans outreach specialist for National Grid who is also a veteran himself. “Our industry has a role to play that is bigger than just hiring—we can help to pave the way for transitioning veterans into civilian jobs. Recognizing and supporting veterans once they are hired is critical to achieving a successful transition as we move our dedicated service members from the front lines to the power lines.”

National Grid also has its own Veterans Employee Resource Group (VERG) to help implement the Troops to Energy Jobs national template in all its service territories. This group of 185 members is strongly involved with recruitment and outreach efforts that encompass National Grid’s Massachusetts, Rhode Island, Upstate NY and Downstate NY businesses. The company’s VERG provides ongoing support to veteran employees, assists the Human Resources Department by reviewing resumes for candidates who are veterans, and maintains a visible presence in local communities, including attending career fairs to recruit other veterans.

National Grid works with the Department of Labor in Massachusetts as well as at local One-Stops in its efforts to recruit veterans. The company also works closely with veterans organizations such as the Office of Veterans Affairs, directing candidates to the Troops to Energy Jobs website for assistance in translating military skills to those needed in energy jobs. The company will often tweet job openings and veteran-themed resources as part of its effort to reach as many veterans in as many different ways as possible.

Alternative energy, bioenergy, Electricity

Adkins to Add Corn Oil Biodiesel Plant to Ethanol Ops

John Davis

adkinsenergy1Adkins Energy LLC will add a corn oil biodiesel plant to its Lena, Ill. ethanol operation. This article in BioFuels Journal says the company will get some help in the form of a $500,000 Rural Energy for America Program (REAP) grant to start building the $4.5 million, 2-million-gallon biodiesel plant expected to start operating next spring.

“We are excited to add biodiesel to our product offerings and thankful that the USDA sees the value in this project,” said Adkins Energy General Manager Ray Baker.

“This project is another example of how the Renewable Fuel Standard (RFS) is working for Americans; it is encouraging continued investment in advanced bio-refineries and creating new jobs which are helping to revitalize rural communities like ours.”

Adkins Ethanol currently produces about 1.5 million gallons of distillers corn oil a year, which is sold either into the biodiesel production market or as a supplement to the animal feed market.

Adkins will use this feedstock to produce the biodiesel in its facility, a process which will be fully integrated into existing ethanol operations, creating significant operating efficiencies in the production of biodiesel.

WB Services of Kansas will partner with Adkins for this first-of-its-kind integrative project.

Biodiesel, corn

Sustainable Roadmap for Jamaica Released

Joanna Schroeder

The Worldwatch Institute has released the report, “Jamaica Sustainable Energy Roadmap: Pathways to an Affordable, Reliable, Low-Emission Electricity System,” that looks at the measures that the Jamaican government can take to transition its electricity sector to one that is socially, environmentally and financially sustainable. The report also analyzes the potential for energy efficiency and renewable energy deployment in Jamaica and discusses the social and economic impacts of alternative energy pathways, concluding that a scenario of high renewable penetration can bring significant savings, greater energy security, gains in competitiveness, and many other important benefits to the country.

Jamaica Sustainable Energy Roadmap“Jamaica is paying a colossal price to import polluting and health-threatening fossil fuels, even when it has the best clean energy resources at its doorstep: wind, solar, hydro, and biomass,” said Alexander Ochs, Director of Climate and Energy at Worldwatch and a co-author of the study. “The Jamaican government has set a nationwide goal of 20 percent renewable energy use by 2030; our Roadmap will help to realize this goal. What’s more, our analysis shows that the bar can and should be set much higher: Jamaica can become a zero-carbon island in a matter of decades, and its people would benefit enormously from such a transition.”

Worldwatch collaborated closely on this project with the Government of Jamaica. “I am very confident that the outcome of this project will enable Jamaica to map, in more precise ways, the additional electricity generation capacity that we seek,” says Jamaican Energy Minister Philip Paulwell. “We intend to use the Roadmap to determine the next phase of new generation capacity, and it will enable us to be far more efficient than we have in the past.”

Jose Maria Figueres, president of the Carbon War Room and former president of Costa Rica, points to the broader benefits of the study and Worldwatch’s Sustainable Energy Roadmap work: “This report provides the practical steps that enable us to fast-forward the deployment of renewable energy. With it, we can boost national economies and improve conditions of well-being. [Jamaica] can become a shining example of what the future is all about.”

The Roadmap also delves into the full societal costs of Jamaica’s current electricity sector to the costs of alternative pathways that are based on high shares of domestic renewable energy. The report concludes that Jamaica will benefit economically, socially, and environmentally if it relies more heavily on renewable energy sources and less on fossil fuels. In addition, based on analysis of Jamaica’s investment environment, the Roadmap suggests regulatory and institutional changes that will be necessary to attract new investments in clean energy solutions.

bioenergy, Electricity, International, Solar, Wind

USDA Releases Updated 2013 Corn Crop Report

Joanna Schroeder

The U.S. Department of Agriculture (USDA) has just released its updated 2013 corn crop report and is estimating the 2013 corn harvest will achieve a new record of 13.99 billion bushels, 7 percent larger than the previous record and a 30 percent larger than last year’s drought-shortened crop. USDA expects yield to average 160.4 bushels per acre, the 2013 corn harvestsecond-highest yield on record. The report also showed a 2 percent decrease in planted acreage compared to last year. However, the Genscape LandViewer yield forecast remains on the lower end of analysts’ predictions at 13.57 billion bushels.

Growth Energy CEO Tom Buis said of the updated corn harvest forecasts, “It is clear from this report that the food versus fuel debate over the U.S. renewable fuel policy can be put to bed. Our farmers have once again proven we can produce abundant quantities of high quality food, feed, fiber and renewable fuel.”

Other highlights from today’s USDA report:

  • Corn ending stocks are projected to hit 1.89 billion bushels, the highest since 2005.
  • Corn prices are projected at $4.10-4.90 per bushel, the lowest in three years.
  • 4.9 billion bushels are slated to be used to make ethanol and animal feed co-products. Roughly two-thirds (3.28 bbu.) of the corn destined for ethanol plants will be converted to fuel ethanol, while the remaining one-third (1.62 bbu.) will be processed into high-protein, high-energy animal feed. On a net basis, just 22% of the record corn supply in 2013/14 will be used for ethanol production.
  • Livestock feed is again projected to be the top use of corn, with 5.2 billion bushels of consumption. When feed co-products from ethanol are considered, livestock will consume the equivalent of 6.8 bbu., or 46% of the corn supply.
  • World grain ending stocks are projected to hit the second-highest level in the last 12 years.
  • World grain production is projected at a record 2.43 billion metric tons and supply is expected to rise to 2.88 billion metric tons. This means U.S. ethanol production is expected to use just 2.95% of the world grain supply on a net basis—the lowest in four years.

“This year’s corn crop is a tremendous accomplishment and we applaud America’s farmers for their hard work and resilience,” said Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA). “It is truly remarkable that the second-best yield in history was achieved despite an extremely late, wet planting season and the so-called ‘flash drought’ late in the summer. This year’s yield and record crop highlight the astonishing innovation and technological change occurring in agriculture. Producing a crop this size using 1980-era technology and average yield would have required 76% more harvested acres.”

Dinneen added, “This historic crop underscores the urgency of maintaining demand. Now, more than ever, the Renewable Fuel Standard must stand as is. No cuts, no reductions. This country will be swimming in excess corn if the RFS requirements are cut.”

biofuels, corn, Growth Energy, RFA

Maryland Opens New E85 Station

Joanna Schroeder

IMG_3214Mid-Atlantic Petroleum Properties (MAPP) has opened a new E85 FlexFuel fueling station for drivers of flex fuel vehicles located at the Potomac SUNOCO in the Cabin John Shopping Center off of Seven Locks Road in Maryland. The opening was celebrated with a ribbon cutting, a retailer’s workshop, and speeches by partners and elected officials. MAPP offered E85 at the discounted price of $1.85 per gallon during the event. With the opening of the Potomac SUNOCO, there are now sixteen E85 (eighty-five percent ethanol, 15 percent gasoline) retailers in the greater metropolitan area.

MAPP now operates 11 stations offering E85 making them the largest E85 retailer in the Maryland-DC Metro Area. MAPP’s Chairman and CEO Carlos Horcasitas said during the ribbon cutting event, “This station opening represents our continued commitment to E85-FlexFuel in the region.” He believes, “E85 is better for our county and our customers. Ethanol provides customers with a valuable fuel choice that costs less and is a step forward toward a better environment.” They plan on offering E85 at all of their 30 plus locations in the future.

Drew Stabler, Treasurer and Board Member of the Maryland Grain Producers Association and Montgomery County Grain farmer was in attendance. “It is exciting to see the continued expansion of stations offering E85 in Maryland,” he said. “The Maryland Grain Producers believe that ethanol is a product beneficial to consumers, agriculture and the environment allowing us to reduce the cost of fuel, create alternative markets for grain, and run cleaner, more environmentally friendly gas in our vehicles. Maryland grain farmers are committed to expanding the production and use of ethanol.”

Earl “Buddy” Hance, Secretary of the Maryland Department of Agriculture and a farmer himself, was also present. “Renewable energy is a prime opportunity to meet the nation’s need for alternative fuels and the farmer’s need for alternative markets. Renewable fuels have created an enormous new value-added market for farmers and help to reduce the nation’s dependence on foreign oil. Ethanol is a key factor for Maryland to reach its goal of reducing State-wide greenhouse gas emissions 25 percent from 2006 levels by 2020,” said Hance.

IMG_3217“Making the transition to clean, domestic, non-petroleum fuels gives consumers a better choice for both health and their pocketbook,” added Douglas A. Durante, executive director of the Clean Fuels Development Coalition. “Ethanol expands fuel supplies and lowers gasoline costs to consumers. Using E85 and Flexible Fuel Vehicles is an opportunity for every citizen and every driver to take part in reversing our staggering dependence on imported oil and requires no change in driving habits, personal mobility, or comfort and safety. We encourage all drivers to see if their vehicle is among the millions than can use FlexFuels and also consider a Flex Fuel Vehicle for their next purchase.”

Partners in the event included Mid-Atlantic Petroleum Properties, the Maryland Grain Producers Utilization Board, Sustainable Energy Strategies Inc., the Flex Fuel Awareness Campaign, Maryland Clean Cities, the Greater Washington Region Clean Cities Coalition, the Clean Fuels Development Coalition, Protect Fuels, Criswell Auto, the Renewable Products Marketing Group and Growth Energy.

biofuels, E85, Ethanol