Clarity Needed in Energy Subsidies Debate

Joanna Schroeder

Attempts to compare subsidies for different energies in the UK are “apples to oranges” and muddle a skewed debate further, the CEO of the European Wind Energy Association (EWEA) said today. With the European Commission preparing guidance on public intervention in energy markets, EWEA is calling for greater clarity and more transparency on public support.

Print“At a time when everyone is worrying about energy prices and looking for a scapegoat, we need to know exactly how much taxpayer money different energy sources get,” said Thomas Becker, EWEA’s CEO. “It is therefore alarming when the press claims that EU Energy Commissioner Oettinger is attempting to hide such figures.

“Comparing a price for offshore wind in the UK in 2018 (£135/MWh) which lasts 15 years to a different price for nuclear in 2023 (£92.50) which lasts 35 years is comparing apples to oranges,” he added.

Becker notes these prices are calculated assuming that a new nuclear reactor will last 60 years, which he calls “a world first”. He also points out that they don’t take into account the huge public decommissioning costs – £1.9 billion per year for nuclear in the UK. Nor, said Becker, do these numbers take into account the “incalculable risk to public health and safety” that no-one has yet put a figure to.

“The UK government is injecting an old-school technology, which other countries are relegating to the history books, with a double dose of money – a strike price twice the market price – to keep it alive,” concluded Becker.

Alternative energy, Energy, International, Wind

Ethanol Plant Offering Blending Pump Grants

Joanna Schroeder

LSCP logoLittle Sioux Corn Processors (LSCP), a 110 million gallon per year ethanol plant based in Marcus, Iowa, is offering financial assistance to Iowa retailers who install blender pumps. The LSCP board of directors is making $75,000 available to retailers to offset the cost of blender pump installations.

“There is a vital need for higher blends of ethanol and Little Sioux Corn Processors wants to be part of making this a reality,” said Steve Roe, General Manager of LSCP. “Little Sioux is committed to expanding the availability of ethanol and bringing more renewable fuel choices to motorists.”

LSPC will provide $15,000 for new blender pump installations for a total of 5 blender pumps. This program is open to all Iowa retailers who install a blender pump after November 1, 2013. Retailers wishing to apply for LSCP’s grant program should submit an itemized list of expenses, sales volume forecasts for the first two years of operation, proof of project completion, and photo of the dispenser. In addition, the retailer must agree to offer only ethanol blends through the dispenser, including E15 and E85.

“Installation of blender pumps is the most economical approach to offering fuels today,” Roe added. “The return on investment is spread over multiple fuels and provides retailers the flexibility to change fuel options in response to customer needs and market dynamics.”

Applications are subject to approval by the LSCP Board of Directors and should be submitted to Steve Roe, Little Sioux Corn Processors, 4808 F Avenue, Marcus, IA 51035. For more information, contact Steve Roe at 712-376-2800.

biofuels, Ethanol, Renewable Energy

OPEI Launches Look Before You Pump

Joanna Schroeder

The Outdoor Power Equipment Institute (OPEI) recently announced their new national ethanol education and consumer protection campaign, called ‘Look Before You Pump’. OPEI said the campaign cautions consumers against the use of E15 or higher ethanol blends in outdoor power equipment such as mowers, chain saws, snow throwers, generators and other small engine products.

E15 was approved by the Environmental Protection Agency (EPA) for use for vehicles and light duty trucks manufactured in 2001 or newer and was not approved by the EPA for use in small engines or other vehicles. In addition, stations that sell E15 must be EPA-approved Look Before You Pumpand show the orange E15 label educating consumers about proper fuel use. Yet regardless of all the measures put into place by the EPA and all fuel retailers, organizations such as OPEI have insisted consumers are not smart enough to read labels and choose the appropriate fuel at the pump.

According to a recent OPEI/Harris Interactive study, the vast majority of Americans (71 percent) are “not at all sure” if it is illegal or legal to put high level ethanol gas (i.e., anything higher than 10 percent ethanol) into engines such as those in boats, mowers, chain saws, snow mobiles, generators and other engine products. However other E15 studies have shown that since E15 has been introduced into the fuel supply, no retailers have received any complaints.

“Although there is continued uncertainty in the renewable fuels market, one thing for certain is that the way consumers select and use fuel will be changing in the coming years,” said Kris Kiser, President and CEO of OPEI. “It is incumbent upon our industry to be proactive. We are cautioning American consumers and business owners whose livelihood depends on our equipment to be more mindful at the gas pump. Don’t assume that the gas you put in your car can still go in your mower, chain saw or generator.”

OPEI says its number one goal is to protect its consumers ad urges them to read their equipment operating manual before filling with gasoline to ensure they use the right fuel for that engine.

biofuels, E15, Ethanol, Opinion

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFBroadwind Energy has announced that it is making management changes to better align the business for growth. The company will eliminate the chief operating officer position. As a result, Jesse E. Collins, Jr., executive vice president and chief operating officer, and interim president of the Company’s Services business, will be leaving Broadwind. Collins will continue leading the Services business until the end of the year. The Company has also named Mark T. Skeen, currently vice president of Abilene tower operations, to the newly created role of vice president and general manager of the Company’s industrial weldments business.
  • SunPower Corp. has celebrated the production milestone of the 500,000 solar panel manufactured at the Flextronics facility in Milpitas, California. Dedicated in April 2011, the plant employs more than 100 people and produces between 80 and 90 megawatts (MW) annually, depending on the size of the solar panel being produced.
  • Solar electric retrofitting Utah businesses and homes offers powerful returns on investment and backup electricity in case of emergency. That’s the assertion of a distinguished group of energy experts set to discuss solar energy return on investment on November 8th at the Provo Marriott. At no cost to the public (RSVP required), panelists will chart the course for installing and financing solar systems for the quickest payback. Event sponsors seek to educate the public in advance of the January 2014 Utah Solar Incentive auction offering a limited number of large rebate incentives for small business.
  • Wind Works Power Corp. has announced the execution of a Power Purchase Agreement for its 100% owned Thunder Spirit Project, located in Hettinger, North Dakota. The Power Purchase Agreement with Montana-Dakota Utilities Co. (MDU), headquartered in Bismarck, is for approximately 105 megawatts (MW) of installed capacity of wind turbine generators. The project will deliver clean, renewable energy to Montana-Dakota’s electric grid at their 230kV Hettinger Substation. The project is scheduled to reach commercial operation in the fourth quarter of 2015.
Bioenergy Bytes

Go Riteway Delivers Propane Buses

Joanna Schroeder

GO Riteway has purchased 10 new Blue Bird Propane-Powered Vision school buses and 10 Micro Bird buses for Oak Creek-Franklin Joint School District. The company, which transports 5,500 Oak Creek students each day, said they now offer an environmentally friendly bus ride that lowers fuel costs for the community.

GO Riteway1“Congratulations to the citizens of Oak Creek, who will benefit from cleaner air and lower fuel costs with this safe and reliable alternative fuel in their school buses,” said Ron Bast, president of GO Riteway, during an open house at their Oak Creek facility. “Over their lifetime, these school buses will release 1.6 million fewer pounds of carbon dioxide emissions in your community.”

The open house attracted many local officials, including Dr. Sara Burmeister, Oak Creek’s school superintendent, and Steven Kurkowski, alderman for Oak Creek. A fueling demonstration allowed participants to learn firsthand the ease and quick speed of refueling a school bus with propane autogas.

“School districts around the nation are eager for cleaner, lower emissions solutions that also work with their budgets. The Blue Bird Propane-Powered Vision and Micro Bird meet these needs, with lower fuel and maintenance costs, decreased noise, and environmental benefits,” said Phil Horlock, president and CEO of Blue Bird Corporation. “Blue Bird’s propane-powered buses are a smart choice for any contractor or school district.”

The 78-passenger Blue Bird Propane-Powered Visions and 30-passenger Micro Bird buses meet all applicable School Bus Federal Motor Vehicle Safety standards, and Environmental Protection Agency and California Air Resources Board certifications, and uses the latest advancements in alternative fuel technology, including the ROUSH CleanTech liquid propane autogas fuel system and the Ford 6.8-liter engine.

Alternative Vehicles, Propane

Mercedes Offers Biodiesel-Compatible Engines Again

John Davis

Biodiesel lovers might soon be singing a the line from the old Janis Joplin song, “Oh Lord, won’t you buy me a Mercedes Benz?” The German car maker will once again offer its line of biodiesel-compatible vehicles. This news release from EINNews.com says that after several years of not selling its BlueTEC diesel engines, the clean burners are back.

Improving the design and returning stronger than ever, the Mercedes-Benz line of BlueTEC engines can now properly utilize B5 biofuel. Biodiesel-consuming engines are available on some of their most popular vehicles including the GLK, M, GL, and E-Class. Providing emission passing ratings and some of the highest fuel economy marks for their respective classes, the Mercedes-Benz BlueTEC engines are great options for drivers searching for an alternative to gas-powered vehicles.

The story goes on to point out that this is the latest development in Mercedes’ long history of offering diesel-powered passenger vehicles, which most diesels are already compatible with biodiesel. The latest advances in the BlueTEC engine allow it to run both ultralow-sulfur fuel and B5 biodiesel.

Biodiesel

Darling Buys Biodiesel Feedstock Renderer

John Davis

Texas-based Darling International Inc. has closed the deal to buy a Canadian company dealing with rendering and biodiesel. This company news release says Darling bought Rothsay, the rendering and biodiesel division of Maple Leaf Foods Inc., for about $618 million.

Darling International Chairman and Chief Executive Officer Randall Stuewe said, “We are excited to add the Rothsay assets and employees to our portfolio. Together we will bring new solutions and opportunities to our many customers across North America.”

Darling International Inc. is the largest and only publicly traded provider of rendering and bakery residuals recycling solutions to the nation’s food industry. The Company recycles beef, poultry and pork by-product streams into useable ingredients such as tallow, feed-grade fats, meat and bone meal, poultry meal and hides. The Company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. These products are primarily sold to agricultural, pet food, leather, oleo-chemical and biodiesel manufacturers around the world.

Earlier this year, Texas-based Darling opened a joint venture renewable diesel plant with energy giant Valero in Louisiana. That plant also uses animal fat to make the renewable diesel, as well as using waste cooking oil and corn oil.

Biodiesel

EPA Response to Calls for Lowering RFS

Cindy Zimmerman

epaThe U.S. Environmental Protection Agency has issued a statement regarding the AAA call to lower the Renewable Fuel Standard (RFS), stressing that no decision has yet been made on for 2014.

The Obama Administration remains firmly committed to furthering the development of all biofuels – including corn-based ethanol, cellulosic biofuel, and advanced biofuel – as part of the President’s commitment to developing a clean energy economy. Biofuels are a critical part of the President’s all of the above energy strategy that is reducing America’s dependence on oil and creating jobs across the country. At this point, EPA is only developing a draft proposal. The agency has made no final decision on the proposed renewable fuel standards for 2014. And no decisions will be made on the final standards without a full opportunity for all stakeholders to comment on the EPA’s proposed 2014 renewable fuel standards and be heard on how to best foster a growing biofuels industry that takes into account infrastructure- and market-related factors.

Renewable Fuels Association (RFA) president and CEO Bob Dinneen said today that it did appear EPA is planning on lowering the Renewable Volume Obligation (RVO) for 2014, which would be a “reversal of stunning proportions” that effectively “guts the program.”

Ethanol, Ethanol News, Government, RFA, RFS

Dinneen: Lowering RFS Would be Mistake

Cindy Zimmerman

dinneen-capitolRenewable Fuels Association (RFA) president and CEO Bob Dinneen fears “the Obama Administration is about to make a huge mistake” in lowering the volume requirements for ethanol under the Renewable Fuel Standard (RFS).

In an interview for “The Ethanol Report,” Dinneen says it does appear that the Environmental Protection Agency is planning on changing the Renewable Volume Obligation (RVO) for 2014. “I find that hard to believe because this administration has been so strongly supportive of the RFS, of farmers, of a growing renewable fuels industry … this would be a reversal of stunning proportions,” he said. “It guts the program.”

ethanol-report-adDinneen notes that EPA has not yet made the proposal for 2014 and once that happens there will be at least a 30 day comment period. “They’re supposed to have a final rule by November 30, but nobody in this town expects that to happen,” he said. “I do anticipate they will have the rule proposed sometime this month or early next.”

Dinneen also talks about the RFA response to AAA comments about the safety of E15 and how a recent NREL study proves it is safe in this Ethanol Report interview Ethanol Report with RFA's Bob Dinneen

Subscribe to “The Ethanol Report” with this link.

Audio, Ethanol, Ethanol News, Ethanol Report, Government, RFA, RFS

REG Opens Mason City Biodiesel Plant

Cindy Zimmerman

reg-ribbonRenewable Energy Group today formally opened the company’s recently acquired biodiesel refinery in Mason City, Iowa. The biodiesel company also announced the start of a $20 million project to upgrade the plant to a multi-feedstock facility.

REG completed the acquisition of the former Soy Energy, LLC refinery on July 31, 2013. REG immediately began efforts to repair and re-start the plant and began producing biodiesel on October 1.

“REG Mason City fits into our existing network of biodiesel plants very well and is an ideal location to bring in raw materials for biodiesel production, is a good distribution point, and is sited well to serve our customers and terminals,” said Daniel J. Oh, President and CEO of Renewable Energy Group, Inc. “As we continue to grow as a company and an industry, we are dedicated to our communities like Mason City, and providing America with advanced biofuel.”

Brad Albin, REG Vice President, Manufacturing told the crowd about the upgrades the company will make. “With these upgrades, we will be able to utilize lower cost raw materials like inedible corn oil from ethanol production, used cooking oil and animal fats, with the majority coming from a close proximity to Mason City,” Albin said. “This will give REG Mason City the ability to deliver the highest quality product available, in line with the REG quality standards.”

REG now has eight active biorefineries in four states, with Mason City being the company’s third Iowa facility, joining the company’s first refinery in Ralston and a plant in Newton. The company also has a multi-feedstock biorefinery in nearby Albert Lea, Minnesota, where a $21 million multi-feedstock upgrade was just recently completed. REG also has two refineries in both Illinois and Texas respectively. The REG-owned biodiesel production fleet has an annual production capacity of 257 million gallons.

Biodiesel, REG