Propel, Solazyme Seen as Future of Algae Biodiesel

John Davis

SZ_Propel_1_webA couple of companies familiar to Domestic Fuel readers are being mentioned as the future of algae-based biodiesel. This article from the Voice of America (VOA) talks about how the partnership between renewable fuel marketer Propel Fuels and algae-biodiesel maker Solazyme, both based in Northern California, is advancing the role algae-based biodiesel is having.

“It all starts in the lab where what we do is we grow a proprietary strain of algae that are actually optimized to produce an oil that is a perfect oil, an algae oil, to make into fuel,” [Bob Ames, Solazyme’s vice president in charge of fuels] said.

To test its marketability, Propel installed algae-based fuel pumps at four of its seven stations in the San Francisco Bay area. It was the first time Solazyne’s new biodiesel was offered to the public. The companies were pleased to see a 35 percent increase in biodiesel sales over the month-long test-run.

“Basically, it was offered at exactly the same price as the competing fuel, and what consumers told us by buying more of it is that they were willing to buy it because of the better environmental benefits,” Ames said.

The article goes on to talk about the economies of scale algae-based biodiesel must reach to be profitable. The companies seem to be on the right track, as Solazyme has a plant in Illinois and another smaller one in California (plus a third even larger plant to be opened in Brazil) that are producing large quantities of algae oil, while Propel seems to have the best means of marketing this particular niche of the green fuel.

algae, Biodiesel

Analysis: Biodiesel Still Profitable Despite Price Drop

John Davis

Biodiesel producers remain profitable despite a recent drop in prices for the green fuel. An analysis from Scott Irwin and Darrel Good with the University of Illinois shows that several factors, including an uncertain future of federal tax credits and a drop in soybean oil prices.

There are likely two explanations for the current spike [in profits]. First, diesel blenders once again are motivated to incentivize an increase in the production of biodiesel during 2013 to take advantage of the blenders tax credit that was reinstated for this year only. It is uncertain whether it will be extended for 2014. Second, the biodiesel mandate under the RFS was expanded by the EPA from 1 billion gallons in 2012 to 1.28 billion gallons in 2013 and there may be a need for additional production above the mandate in 2013 in order to meet parts of the advanced and renewable mandates.
fig3

Figure 3 … helps to explain why biodiesel production profits have only dropped slightly since mid-July in the face of falling biodiesel prices. The sharp drop in soybean oil prices has more than offset the decline in biodiesel prices, thus propping up margins.

The analysis goes on to say that the biodiesel market is playing a big role in Renewable Identification Number (RIN) prices, as blenders have bid up the price of biodiesel since the beginning of this year compared to soybean oil prices.

Biodiesel, Research

U of Cali Riverside Installs EV Charging Stations

Joanna Schroeder

evchargerThe University of California, Riverside has installed eight electric vehicle charging stations as part of the College of Engineering – Center for Environmental Research and Technology’s (CE-CERT) “New Grid” project. The new charging units have “level one” and “level two” charging capability and are located in parking lots 1, 6, 15 and 30. Four additional “level two” chargers are located at the CE-CERT parking lot at 1084 Columbia Avenue in Riverside. The on-campus units are overseen by the UCR Office of Transportation and Parking Services and are part of the Chargepoint network.

According to Irma Henderson, alternative transportation program manager in Transportation and Parking Services, drivers will need to have a valid parking permit to use the space, though any permit that is valid for that time of day will be allowed, regardless of the lot that the stations are in.

“For example, the station in Lot 1 is located in the red spaces, but a person with a blue permit can park there as long as they are participating in an active charging session,” Henderson said.

The cost to charge a vehicle will be $1 per hour for the first four hours, then $3 per hour thereafter.

Henderson said that UCR-affiliated individuals will be able to enter a special code into the system that will provide a $1 per hour discount at the campus charging stations, making the service free for the first four hours.

The “New Grid” project is a two-year smart grid deployment supported by the South Coast Air Quality Management District. The project involves a number of public and private partners and will include, solar arrays, advanced battery storage, vehicle charging stations, an electric trolley, and a grid management system to utilize renewable energy to charge electric vehicles efficiently. As part of the program, 13 additional charging stations are being installed throughout the City of Riverside.

Alternative Vehicles, Electric Vehicles

Feds Go After Biodisel Owner for Securities Fraud

John Davis

SEClogoOn the heels of yesterday’s story about the federal government going after a Renewable Identification Number (RIN) defrauder, it looks like the Securities and Exchange Commission is now going after a biodiesel company owner for a different crime. Biodiesel Magazine reports Paul Marshall, Executive Director of FOGFuels Inc., has been charged with breaking federal securities laws for misappropriating client funds.

According to the commission’s complaint, since at least 2011, Marshall, an investment adviser representative of the Bridge Entities, misappropriated at least $2 million from advisory clients. In its complaint, the commission alleges that Marshall instructed clients, some of whom were elderly, to transfer funds to bank accounts under his control for purported investment in various securities, including mutual funds. Instead, Marshall used those client funds to pay personal expenses, including luxury vacations and private school tuition for his children. The complaint further alleges that Marshall concealed his fraud by providing advisory clients with fabricated account statements.

The charges also say that Marshall misappropriated $100,000 from an advisory client who invested in FOGFuels.

A federal judge froze the assets of Marshall, the Bridge Entities and FOGFuels and is preventing them from destroying documents. A hearing is scheduled for today.

Biodiesel

Biodiesel Bumps Up Soybean Demand, Value

John Davis

USBlogoThe longtime and still primary feedstock for biodiesel has received a bump up in its demand and value. Figures from the United Soybean Board show that in order to meet this year’s federal requirement of 1.28 billion gallons of the green fuel this year, it will take 9 billion pounds of vegetable oils and animal fats, with a majority, at least 4.8 billion pounds, coming from soybean oil. That equals out to 430 million bushels of American soybeans.

“There’s value for soybean farmers from the growing market use of soybean oil for biodiesel,” says Gregg Fujan, a USB director and soybean farmer from Weston, Neb. “It expands the market for our soybeans, which also increases the price we receive.”

According to research commissioned by soybean farmers in Minnesota, Nebraska, North Dakota and South Dakota through their state soy checkoff boards, biodiesel contributed to a $15 billion increase in soybean-oil revenues between 2006 and 2012. Over that time period, this raised the price of soybeans by 74 cents per bushel.

Biodiesel already qualifies as the Nation’s first EPA-approved Advanced Biofuel. Guess that makes soybeans the first advanced feedstock.

Biodiesel, Soybeans, USB

Fuels America Releases E15 Consumer Poll

Joanna Schroeder

Fuels America released a poll today that gauged consumer opinions of E15, a 15% ethanol, 85% gasoline fuel blend currently sold in nine states in the U.S. The poll comes on the heels of E15’s re-entrance into the American fuel market earlier this week. E15 was approved for use in vehicles 2001 or later nearly 14 months ago and today 40 stations are selling E15 at the pump, on average between 10-20 cents less per gallon than regular gasoline.

FA_Sharegraphic_E15_091813aThe poll of 1,211 U.S. adults, revealed that a strong majority of Americans (82 percent) support having E15 available at their local gas stations; and more than three-quarters (76 percent) want access to even higher ethanol fuel blends, such as E20 or E30 (20 or 30 percent ethanol).

“The overwhelming majority of Americans understand that having options when you fill up at the gas station is a good thing,” said Tom Buis, CEO of Growth Energy. “They have spoken loud and clear that they want access to clean, homegrown renewable fuel. What we clearly see from this poll is that consumers like higher blends of ethanol in their gas because it saves them money. Ethanol is currently trading 80 cents lower than regular unleaded gasoline and the bottom line is that ethanol provides consumers a choice and savings at the pump.

“Most drivers fill up with E10 now, but they want higher blends like E15. Currently, consumers do not have access to higher blends because oil companies have failed to modernize their infrastructure and refuse to allow these cheaper fuels to compete with their own product,” added Buis.

The Fuels America poll found that nearly four in five (79 percent) believe that the oil industry’s efforts to block the availability of E15 is bad for consumers.

Listen to the E15 Consumer Poll press call here: E15 Consumer Poll

In addition to releasing the new poll data, during a media teleconference, several ethanol advocates debunked a number of myths that oil industry lobbyists continue to perpetuate about E15.Read More

Audio, biofuels, E15, Ethanol, Fuels America, Growth Energy, RFA

Climate Hearing Sparks Frenzied Debate

Joanna Schroeder

This week the Energy and Power subcommittee of the Energy and Commerce Committee heard testimony from Energy Secretary Ernest Moniz and Environmental Protection Agency Administrator Gina McCarthy about the President’s climate plan. This past June, President Obama unveiled his new action plan for climate change. Many of the opponents of the plan are criticizing the proposed regulations from EPA for new and existing power plants, which they argue will increase costs for consumers and send jobs overseas but haven’t put forth alternative solutions.

Mark Reynolds, executive director of Citizens Climate Lobby said the time dedicated to the hearing would be better spend talking about effective alternatives to Obama’s plan. “We April in DCunderstand that conservatives object to the use of EPA regulations to curb greenhouse gases,” he said. “If that’s the case, and given the rapidly closing window for action on climate change, they should be talking about a market-based alternative, such as a revenue-neutral carbon tax.”

Citizens Climate Lobby proposes a steadily-rising carbon tax and returning proceeds to the public to offset increased energy costs. A number of conservatives have expressed support for this approach and Reynolds said they should be called to testify at the next hearing.

“I’m grateful that Chairman Ed Whitfield convened today’s hearing, and I hope there are more to come in the near future,” continued Reynolds. “Having held a hearing to critique the President’s plan, the next hearing should focus on solutions.”

Among them, Art Laffer, former Reagan economic adviser said, “Reduce taxes on something we want more of–income–and tax something we arguably want less of–carbon pollution. It’s a win-win.”

While Greg Mankiw, economic advisor to George W. Bush and Mitt Romney commented, “A proposed carbon fee — or carbon tax, if you prefer — is more effective and less invasive than the regulatory approach that the federal government has traditionally pursued.”

Reynolds concluded, “It’s easy to sit and complain that the President is trying to circumvent Congress. Congress, however, has failed to protect our nation from the risk of climate change. It’s time to stop complaining and take action.”

Clean Energy, Climate Change, Environment

Siemens Unveils Plan for Wind Training Facility

Joanna Schroeder

Siemens has unveiled plans to build a new, state-of-the-art wind service training facility in Orlando, Florida. The facility will offer comprehensive skills and safety training to its service technicians and engineers worldwide. The 40,000 square foot center will be located close to the the company’s global Energy Service Division in Orlando and is expected to be one of the most advanced wind training facilities in the world.

“We are pleased that Florida remains a solid business base for Siemens as indicated by its choice of our state over other U.S. states for this innovative, high-tech training center,” said Florida Governor Rick Scott.

Siemens announces plans for new, state-of-the-art wind service training center in U.S.Siemens’ initial investment will be approximately $7 million and the company plans to create 50 new full-time jobs and host approximately 2,400 trainees annually from the U.S. and the Americas. The training center, which is being built based on LEED Gold green-building standards, is scheduled to begin operations by this summer.

“As wind energy has become a mainstream source of power generation, the continued reliable and competitive performance of renewable energy is critically important to meeting the nation’s future energy demand,” said Randy Zwirn, CEO of Siemens Energy, Inc. and CEO of Siemens Energy’s global Service Division. “As an industry leader in both onshore and offshore wind, Siemens is poised to meet that demand and this new, advanced training facility in the U.S. will help ensure that our wind service technicians receive the highest standard of technical and safety training.”

The wind training center will provide technical and health and safety training for Siemens’ wind power service technicians. The central feature of the new training center will be two full-size Siemens nacelles upon which wind service technicians will be trained to perform maintenance based on Siemens specifications. In addition, two 32-foot high climbing towers, ladder structures, electrical and hydraulic modules, and a maintenance crane will make training, safety and rescue simulations possible under realistic conditions.

Alternative energy, Education, Wind

RFS Dominates DC Policymakers Conversations

Joanna Schroeder

Fuels America launched an educational program in Washington, D.C. this week to highlight the importance of the Renewable Fuel Standard (RFS). The program highlights the key benefits of the energy policy and includes messaging that carpets Metro stations most traveled by policymakers and their staff.

783-1“The RFS is important not only for corn farmers but also for our nation as we move toward a more energy secure, environmentally sound future,” said National Corn Growers Association (NGGA) President Pam Johnson, whose organization is a member of Fuels America. “When people understand the incredible alternative ethanol offers, they embrace it as a way to keep out-of-control gas prices in check while cleaning our air and reducing our dependence on foreign oil. Now, whether commuting to work or just heading across town, the precise people who influence our nation’s energy policy will be confronted with the critical importance of preserving the RFS and our nation’s energy future.”

The RFS, says NCGA is founded on three principles: its good for the U.S. economy, it’s good for our nation’s energy security, and it’s good for the environment.

biofuels, corn, Ethanol, Fuels America, NCGA, RFS

Novozymes & Raízen Partner on Cellulosic Ethanol

Joanna Schroeder

Novozymes and Raízen Energia S/A, Brazil’s largest sugarcane crusher, have announced plans to collaborate on the first commercial-scale cellulosic ethanol plant in Brazil. Novozymes will be supplying enzyme technology for the plant, expected to begin production by the end of 2014.

Sugarcane in BrazilThe plant will be a bolt-on facility to Raízen’s Costa Pinto sugarcane mill in the state of São Paulo and will have the capacity to produce 40 million liters of cellulosic ethanol a year from sugarcane bagasse and straw. The agreement also provides for Novozymes to supply enzyme technology to Raízen’s second cellulosic ethanol plant, should such a plant be constructed.

To support Raízen in its efforts to advance cellulosic ethanol, Novozymes will develop enzyme technology optimized for Raízen’s process. In addition, Novozymes intends to establish new enzyme-manufacturing capacity in Brazil. The exact size, location and investment budget for this enzyme-manufacturing facility are not yet determined and will depend on the level of estimated demand for enzyme technology in Brazil.

“This first plant developed by one of the world’s largest sugarcane ethanol producers marks an important step in the commercialization of cellulosic ethanol in Brazil,” said Thomas Videbæk, Novozymes’ Executive Vice President of Business Development. “We look forward to sharing the journey with Raízen and enabling this exciting development for Brazil through the delivery of world-leading enzyme technology.”

advanced biofuels, Brazil, Cellulosic