Advanced Biofuels Industry is Here to Stay

Joanna Schroeder December 4, 2013

During a press call today, Advanced Biofuels Association (ABFA) President Micheal McAdams said the EPA’s proposal would be a devastating blow to the many companies working today to fulfill the promise of the Renewable Fuel Standard (RFS) by raising capital, building manufacturing facilities and actually producing advanced biofuels that cut greenhouse gases in half compared to gasoline.

In their proposed rule, EPA announced it is considering a range of between 2 billion and 2.5 billion ethanol-equivalent gallons for advanced biofuel in 2014 and has proposed 2.2 billion gallons as the volume target. For comparison sake, 2.2 billion gallons represents a 20-percent reduction from this year’s advanced biofuel requirement of 2.75 billion gallons and a greater than 40-percent cut from the 3.75 billion gallons contemplated by the RFS statute.

“Let me be clear,” said McAdams during the call, “that the advanced biofuels industry is here today and investing for tomorrow. Innovative companies have responded to the challenge of producing cleaner, low-carbon fuels by spending a collective $14 billion on the development of advanced and cellulosic biofuels. But EPA’s proposal will devastate that progress and chill any future investments.

Listen to Michael McAdams remarks during the press call here: Advanced Biofuels Industry is Here to Stay

McAdams noted three key points he wanted to make as the 60-day comment period begins and said he would be delivering this message in his testimony during the EPA hearing tomorrow.

Number One: EPA’s proposed RFS reductions fall disproportionately on advanced biofuels. The EPA is proposing to cut volume requirements for advanced biofuels by more than 40 percent when compared to the requirements written into the RFS statute. In contrast, EPA is proposing to reduce volume requirements for conventional biofuels by less than 10 percent. We’re left scratching our heads and wondering why EPA would deliver such a disproportionately large blow to the category of renewable fuels that reduces greenhouse gas emissions the most. It’s unfair and counterproductive to the Obama administration’s stated goal of reducing climate change.

Number Two: EPA’s Monte Carlo model will always roll snake eyes for the advanced and cellulosic biofuels industry. That’s because EPA’s proposed methodology for setting upcoming RFS targets looks backwards at the average of historical data, rather than forward to future production levels. For our evolving industry, such a policy will ensure a continuous oversupply of advanced biofuels compared to what the EPA model forecasts. This imbalance will in turn crater the value of the renewable identification numbers (or RINs) that are assigned to each ethanol-equivalent gallon of biofuel. RIN prices are instrumental to financing the development of future advanced and cellulosic biofuel facilities, and the agency cannot support the emergence of a low-carbon, innovative industry by looking through the rear-view mirror.

Number Three: EPA should set RFS standards that encourage production and consumption of all available advanced biofuels. There are no other fuels available today that deliver greater reductions in greenhouse gases than advanced biofuels. For an administration that is committed to addressing climate change, this proposal leaves low-hanging fruit still in the tree by setting consumption targets below available levels of advanced biofuels, plus carry-over RINs. As I said, ABFA takes issue with EPA’s Monte Carlo model. But even using the agency’s lowball estimate, EPA predicts up to 3.23 billion gallons of advanced biofuel will be available next year. This estimate is in line with ABFA’s conservative forecast that our industry will generate at least 3.2 billion RINs in 2013 that qualify as advanced biofuels, exceeding this year’s target by at least 500 million gallons and generating that many carry-over RINs.

advanced biofuels, Audio, EPA, RFS

Big Turnout Expected for EPA RFS Hearing

Cindy Zimmerman December 4, 2013

A huge turnout is expected Thursday at a public hearing on the Environmental Protection Agency’s proposed Renewable Fuel Standard volume obligations for 2014. Literally busloads of stakeholders, both opposed to and in favor of cutting the requirements, are attending the hearing at the Hyatt in Crystal City, Virginia.

Iowa Governor Terry Branstad will be attending with several Iowa livestock producers, farmers and renewable fuels leaders. Branstad fears the EPA proposal could lead to another farm crisis. “I was governor during the farm crisis of the ‘80s when land values dropped 63 percent,” he said during a conference call on Wednesday. “I know what can happen when you have an agriculture depression, and we don’t want to go back and revisit that.”

Also attending the hearing will be corn farmers from a dozen other states in addition to Iowa. “It’s great to see so many people willing to leave their farms at this time of year for an important opportunity to give the EPA a piece of their mind,” said National Corn Growers Association First Vice President Chip Bowling of Maryland.

Advanced biofuels producers will be making the case that they would bear a disproportionate share of the proposed cuts. “They have proposed to cut volume requirements for advanced biofuels by more than 40 percent compared to requirements written into the statute,” said Advanced Biofuels Association President Michael McAdams. “In contrast, EPA has proposed to reduce volume requirements for conventional biofuels by less than 10 percent. We’re left scratching our head wondering why the EPA would deliver such a disproportionate large blow to the category of renewable fuels that reduces greenhouse gases the most.”

Nearly two dozen representatives of the U.S. biodiesel industry are slated to testify at the hearing, including Wayne Presby with White Mountain Biodiesel in New Hampshire, who says the proposal threatens the survival of his company. “We currently employ 20 people and have grown at an annual rate of 300 percent per year for the last two years,” he says. “We were intending to further increase our production this coming year and hire additional workers for a third shift, however, the current proposal by the EPA will halt our growth completely and may result in the closing of our business.”

The hearing is scheduled to begin at 9:00 am Eastern time and “end when all parties present who wish to speak have had the opportunity to do so.” Domestic Fuel reporter John Davis will be there to provide coverage here.

advanced biofuels, Biodiesel, biofuels, corn, EPA, Ethanol, Ethanol News, Government, NCGA

RFS Proposal Could Devastate Rural Economy

Cindy Zimmerman December 4, 2013

Representatives from state government, the agriculture community, and the ethanol industry all say the Environmental Protection Agency’s proposed 2014 Renewable Fuel Standard (RFS) biofuels requirements would have a negative impact on agriculture and rural economies.

During a telephone press discussion today about the proposal, Iowa Governor Terry Branstad said he was proud of his state’s leadership in biofuels production and he believes lowering the volume obligations would be detrimental for jobs and land values in rural America. “I’m concerned that this would be devastating to what has been a robust economic recovery” in the agricultural heartland of America, said Branstad. “I think the president’s made a terrible mistake caving in to Big Oil on this issue.”

The proposal has already led to lower futures prices for corn, which American Farm Bureau economist Matt Erickson says could mean 2014 will see prices below the cost of production for the first time since 2005. “Looking at USDA’s cost of production forecast, the breakeven for corn for 2014 is forecasted to be over $4 a bushel,” Erickson said, adding that if the price is lower, farmers would lose money.

Reducing America’s dependence on foreign oil was the primary objective of the RFS, but “revitalizing rural communities, boosting farm income and reducing farm program costs were also important policy objectives,” but noted Renewable Fuels Association president and CEO Bob Dinneen. “The RFS has certainly helped to do that and this proposal will reverse that policy as well.”

Listen to comments from Branstad, Erickson and Dinneen with questions from the media here: Comments on RFS Proposal Negative Impacts

Audio, corn, Ethanol, Ethanol News, Farm Bureau, RFA

Rep. Cheri Bustos Loves Ethanol

Joanna Schroeder December 4, 2013

Did you know that Representative Cheri Bustos (D-IL) loves ethanol? Those in attendance at Patriot Renewable Fuels roundtable and RFS rally learned this when hearing from Rep. Bustos about her support of the Renewable Fuel Standard (RFS).

A little over two weeks ago, the Environmental Protection Agency (EPA) announced its proposed renewable fuel volumes for the 2014 RFS. However much to the surprise of the biofuel industry, the EPA proposed lower volumes that in 2013 and even lower volumes when taking into account what the statute outlines for growth of biofuel use. That every day, Rep. Bustos along with Rep. Kristi Noem (R-S.D.) wrote a letter to the Environmental Protection Agency’s (EPA) Administrator Gina McCarthy expressing concern over the proposed rule.

During the roundtable, Rep. Bustos made several comments in support of biofuels including the need for more legislators to learn about biofuels from people on the ground in the industry such as she was doing during her visit with Patriot. She also noted that she liked the buttons that the dozens of attendees were wearing saying: I love ethanol. “I love ethanol too,” she said.

“I will do everything I can to keep fighting for that. I’m very happy to be here and Gene [Griffith with Patriot] has a success story that he shared with you already and the fact that there is going to be a groundbreaking for an additional $10 million biodiesel and nine new jobs, those are things we have to foster through our legislation and make sure that we’re doing everything we can to fight for ethanol. That we’re doing everything we can to fight for biofuels,” said Rep. Bustos. “It is so critical to the state of Illinois and to our country and I’ll speak very specifically to the 17th Congressional District. We have three ethanol plants, Galva, Lena and Annawan so we’re talking a major economic impact.”

Rep. Bustos is a member of the Ag Committee and she is committed to being a positive voice about biofuels in her role.

“We can’t take a step back,” stressed Rep. Bustos. “At worse we want to stay status quo but we want to make improvements. And it’s very clear on why we want to make sure we’re fighting for this.”

“We have time to fight this.”

Listen to Rep. Cheri Bustos full remarks here: Rep. Cheri Bustos Loves Ethanol Read More

Audio, Biodiesel, biofuels, EPA, Ethanol, Patriot Renewable Fuels, RFS

Patriot – The Little Biofuels Plant That Did

Joanna Schroeder December 4, 2013

Remember when you were growing up the story your mom or dad read to you called, “The Little Engine that Could“? It was a motivational story about a little train engine that overcame doubt and adversity to save the day. Patriot Renewable Fuels based in Annawan, Illinois is the little biofuels plant that could in part by mading a recent announcement to build a $10 million dollar, 4-5 million gallon biodiesel plant amidst the uncertainty of the biofuels industry.

Patriot Renewable Fuels President Gene Griffith gives a plant update during their RFS rally and roundable.

On November 15, 2013 the Environmental Protection Agency (EPA) announced its proposed rules for the 2014 Renewable Fuel Standard (RFS) that not only didn’t keep the status quo, but took a step backward in requiring biofuels in the U.S fuel supply. The RFS mandates that by 2022, 36 billion gallons of biofuels be used in our fuel supply to help reduce dependence on foreign oil, improve the environment through the lowering of greenhouse gas emissions and help improve rural economies throughout the country.

Five years ago Patriot began producing ethanol and today the plant produces 120 million gallons of domestically produced ethanol. During an RFS rally and biodiesel plant ground breaking, President an CEO Gene Griffith gave a brief overview of how Patriot has achieved all the goals of the RFS.

More than 200 local investors came together in the grassroots project to create Patriot and Griffith says its is a shining example of how people can come together to create something positive for a local community and the country.

Giffith noted:

Patriot Renewable Fuels was created to develop new markets for corn. Today the plant buys about 40 million bushels of corn per year or approximately 45,000 truckloads a year. This is about the same amount of corn produced in Henry County, Whiteside County or Bureau County in Illinois.
Patriot Renewable Fuels was created as part of the city’s economic development goals. The biorefinery created 50 permanent jobs and when taking into account payroll and benefits for their employees over 5 years they have paid nearly $18 million dollars in salary and benefits. This money goes back into the local economy.
Patriot Renewable Fuels was created to produce both food and fuel. The ethanol plant produces 120 million gallons of ethanol per year, and from a revenue standpoint this is about $272 million dollars in revenue. In addition the plant produces dry distillers grains (DDGs) that is a high quality protein animal feed that can be sold domestically or internationally. Patriot created an export market to China and other areas of Asia who are in need of protein to feed the growing populations. This equates to about $85 million dollars in export revenues per year and over five years they plant has contributed over $400 million dollars to the U.S. balance of trade.

Today, Patriot produces enough corn oil to produce about 4 million gallons of biodiesel per year and with the $10 million biodiesel facility that should be operating within 10 months they will hire another nine employees further adding to economic development and U.S. balance of trade.

Gene Griffith, Patriot Renewable Fuels, and Illinois Representative Cheri Bustos break ground on Patriot’s 4-5 million gallon biodiesel facility.

“Probably the thing I’m most emotional about is our need to reduce dependence on foreign oil,” said Griffith. “Our grassroots project has added about $1.2 billion dollars to the biofuels industry in a little over five years. That’s money that this country doesn’t have to send to the Middle East to buy foreign oil and its money that saves our balance of trade.”

Griffith says its important to share these positive biofuel stories more now than ever with the continued uncertainty of the industry. He encourages people to sign their White House petition in support of the RFS as well as send personal letters to the EPA and to their state and federal legislators to ensure the future of the industry.

Listen to Gene’s highlights about Patriot Renewable Fuels here: Patriot-The Little Biofuels Plant That Did

And check out Patriot Renewable Fuels photo album.

Audio, Biodiesel, biofuels, Ethanol, Patriot Renewable Fuels, RFS

Farmers Head to Washington in Defense of the RFS

Joanna Schroeder December 4, 2013

Farmers from around the country are heading to Washington, D.C. today in defense of the RFS (Renewable Fuel Standard). Hundreds of biofuel and agricultural supporters are descending on DC in for the Environmental Protection Agency’s (EPA) hearing on the 2014 RFS proposed rules that across the board lower the renewable fuel volumes for next year.

The National Corn Growers Association says by cutting the amount of corn ethanol required by 10 percent it will affect corn prices and rural economies. Farmers plans to tell EPA their personal stories of what such an action would reap across rural America.

More than 30 corn farmers and their allies from around the country are attending the hearing including growers from 13 states including Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Missouri, Nebraska, North Dakota, Ohio, Pennsylvania, Virginia and Wisconsin.

“It’s great to see so many people willing to leave their farms at this time of year for an important opportunity to give the EPA a piece of their mind,” said NCGA First Vice President Chip Bowling, a Maryland corn grower scheduled to speak at the hearing. “This has already had a negative effect on our farms, and if the EPA gets its way, it could cause serious harm to the rural economy – not to mention cutting the environmental benefits of domestic, renewable ethanol.”

For 2014, the EPA has proposed a 1.4 billion gallon reduction in how much corn ethanol will be required under the RFS, the federal law that requires the blending of domestic, renewable, cleaner-burning corn ethanol in the nation’s fuel supply. Because of the record crop, growers are already seeing corn prices falling below the cost of production, and due to the planting cycle are having to buy inputs such as fertilizer, seed and fuel at much higher prices, Bowling said.

NCGA is strongly urging all its members to comment directly to the EPA about this issue before the Jan. 28, 2014 deadline. More information about how farmers can do this is available here.

biofuels, corn, EPA, Ethanol, NCGA, RFS

China’s Offshore Wind Power Industry on Track

Joanna Schroeder December 4, 2013

During the 18th Congress of Chinese Communist Party meeting, a call was made to create a “Biological Civilization” strategy that would encompass a plan for more use of green energy including offshore wind. On June 4-6, 2014 Offshore Wind China 2014, Wind Farm O&A China 2014 and Distributed Generation China 2014 are simultaneously taking place at the Shanghai New International Expo Center and Shangri-La’s Kerry Hotel Pudong.

The organizers of the June events include Chinese Renewable Energy Industries Association, Chinese Renewable Energy Industries Committee, China National Renewable Energy Centre and Shanghai International Exhibition Co., Ltd. The groups have announced they will focus on the seven topics for the conferences in an effort to move the offshore wind industry and green energy industries forward.

1. Experience Wind Power Industry’s Turn-around through Release of Latest Progress on Offshore Wind Projects. Offshore wind power developers along with planning and design organizations will be invited to deliver speeches on progress of offshore wind power projects.

2. Catch New Industry Trends by Bringing together Leading Wind Turbine Manufacturers. Key offshore wind turbines manufacturers, including Vestas / Mitsubishi, Goldwind, Gamesa, United Power, Sinovel, Shanghai Electrics / Siemens and Ming Yang will gather to present the advanced offshore wind technologies.

3. Capture Future Market Opportunities in Sector of Wind Farm Operation and Maintenance. The event features Wind Farm O&M Market to explore life-cycle management and after-sales services of onshore and offshore wind farms.

4. Provide Full-range Solutions with Focus on Offshore Installation and Construction. With a focus on offshore installations and construction, leading offshore installation companies including CCCC Third, ZPMC, Jiangsu Longyuan Zhenhua, CCCC Fourth will gather at this event to showcase installation equipments and share practical experiences.

5. Join Hands with Leading Wind Power Nations to Share in Advanced Experience. Attendees will meet with associations and delegations from developed countries including U.K., Netherlands, Denmark, Germany and U.S. to have exchanges with overseas firms.

6. Improve Trade Mechanism by Expanding On-site Communications and Negotiations. The event will further enhance the trade mechanism to hold “On-Site Match-making Meetings between Turbine Manufacturers and Components Suppliers”.

7. Witness Offshore Mega Project by Visiting Offshore Wind Farm under Construction. Attendees will have opportunity to visit East Sea Bridge Offshore Wind Farm (Phase II) during its construction stage, and the China (Shanghai) Pilot Free Trade Zone, the first of its kind in China.

Clean Energy, conferences, Electricity, offshore wind, Wind

BioEnergy Bytes

Joanna Schroeder December 4, 2013

GROWMARK, Inc. has acquired the Canton, South Dakota Propane Terminal from Magellan Pipeline Company, L.P. This acquisition will bolster GROWMARK’s access to propane, expand its propane storage capacity, and enhance GROWMARK’s ability to provide a reliable supply of propane to its members and customers. Terms of the transaction were not disclosed.
Registration is open for the upcoming 2014 National Biodiesel Conference and Expo. The event is taking place January 20-23, 2014 in San Diego. The forecast for the conference: mostly sunny with a strong chance of success. Click here to register before early bird rates fly away.
The U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE) have released the 2014 Fuel Economy Guide, providing consumers with a valuable resource to identify and choose the most fuel efficient and low greenhouse gas emitting vehicles that meet their needs. The 2014 models include efficient and low-emission vehicles in a variety of classes and sizes, ensuring a wide variety of choices available for consumers.
Renew Energy Resources, Inc. has launched Vertically Integrated Renewable Solutions, a new and progressive way of creating profitable renewable energy through vertical integration and end-to-end supply chain management, partnerships, and ownership. This concept was first filed in the company’s 2007 10K and has been in constant revision and experimentation since then. The company anticipates rolling out multiple partnerships, acquisitions and operating opportunities first in biodiesel and then in sucrose-based ethanol. The initial phase of the plan is anticipated to commence in Q-1 2014.

Bioenergy Bytes

E85 Sales in Iowa Strong

Joanna Schroeder December 4, 2013

E85 (85 percent ethanol, 15 percent gasoline) sales in Iowa remain strong with the Iowa Renewable Fuels Association (IRFA) announcing that third quarter sales were the second highest on record, doubling first quarter 2013 numbers. Iowans purchased more than 3.61 million gallons of E85 in the third quarter, nearly double the 1.83 million gallons purchased in the first quarter. The data was released by the Iowa Department of Revenue.

“These astounding third quarter sales numbers prove the federal Renewable Fuel Standard (RFS) was working, but now the EPA is trying to pull the rug out from underneath us,” said IRFA Executive Director Monte Shaw. “During the third quarter, Iowa motorists using E85 routinely saved $1.00 per gallon compared to regular gasoline. But when the EPA announced their proposal to gut the 2014 RFS numbers, they gutted the incentive for retailers to promote low-cost E85. We saw the E85 price savings pull back, and it won’t be surprising if fourth quarter E85 sales taper off as well.”

The IRFA recently launched a wholesale E85 price reporting service with wholesale E85 prices posted every Tuesday, to promote greater transparency for retailers and distributors of E85 in order to aid retailers in supplying their customers with the lowest-cost E85 available.

biofuels, E85, Ethanol, Iowa RFA

Ecosphere Receives U.S. Patent for Ecos PowerCube

Joanna Schroeder December 4, 2013

Ecosphere Technologies, Inc. has announced that the United States Patent & Trademark Office has approved U.S. Patent No. 8,593,102 for Ecosphere’s Ecos PowerCube® – a portable, self-contained micro-utility that uses solar power to provide electricity in the most remote, off-grid locations. Designed to meet the growing demand for off-grid energy, with a unique array of stacked solar panels, the Ecos PowerCube maximizes the total amount of solar power generation possible in 10’, 20’ and 40’ standard ISO shipping container footprints. With power generation capabilities up to 15 KW, the technology can be transported by land, air, or sea and is ideally suited to support off-grid military, disaster relief, humanitarian and mobile communication efforts.

The company says electricity generated by the Ecos PowerCube can be used to power various onboard systems including satellite communications, Internet connectivity, and mobile water treatment systems. The system can also be used to supply military or disaster relief teams with life-sustaining, mobile infrastructure modules, such as hospitals, command centers, sleeping quarters, and temporary schools.

Dennis McGuire, Chairman and CEO of Ecosphere Technologies, said, “We are pleased to finally announce the U.S Patent Office’s decision to grant our Ecos PowerCube patent and the commercial launch of the Ecos PowerCube product line. We believe the Ecos PowerCube addresses significant infrastructure deficiencies in remote field camp installations or when responding to large-scale disasters. Consistent with Ecosphere’s business model, we are seeking to license the Ecos PowerCube to a wide range of entities, including branches of the U.S. and global armed forces, as well as corporations that provide equipment for the military and a wide variety of disaster relief agencies worldwide.”

With the Army embracing renewables to make the business of war safer for soldiers, Ecosphere believes the Ecos PowerCube system is ideal for the military. In May 2013, the Army announced plans to spend $7 billion buying electricity generated by solar, wind, geothermal and biomass projects over the next three decades.

“The Army’s target is to install 1 gigawatt of renewable capacity in the U.S. by 2025 and to reduce non-tactical fuel consumption 30 percent by 2020 from 2005 levels,” said Dean Becker, director and intellectual property strategist for Ecosphere. “The Ecos PowerCube is the world’s most powerful mobile solar powered generator that can ship in standard 10 to 40 foot ISO container dimensions. It can be shipped by truck, rail, air, and sea – just like a standard shipping container.”

Becker added, “When you ship and deploy an Ecos PowerCube, there is no assembly required. Press a button and the solar panels deploy, producing power from the sun. It is a revolutionary solar design that the U.S. Patent Office recognized as being unique and patentable. Unlike conventional solar arrays systems that are placed on the ground or on top of containers, Ecosphere’s patented solar arrays can be retracted to protect the panels in the kind of inclement weather that is prevalent in war zones or disaster relief type scenarios.”

Alternative energy, Electricity, Microgrid, Solar

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