DuPont on Agri-Pulse: Future for Advanced Biofuels

John Davis

open-micAn executive for DuPont is predicting a bright future for advanced biofuels. During a recent podcast on Agri-Pulse, James C. Collins, Jr., senior vice president for DuPont’s Industrial Biosciences, Performance Polymers and Packaging & Industrial Polymers businesses, says he is excited about the future of his company’s new generation cellulosic ethanol plant in Nevada, Iowa and advanced biofuels in general.

“We believe there’s enormous potential in this industry,” he said during the Agri-Pulse Open Mic interview. Collins added that DuPont’s connection in the agri-business field, including its stake in Pioneer seed, as well as its historic tie to industrial chemicals, gives the company some real tools to be successful. “When you think about the power of putting that all together, using our knowledge of agriculture and unlocking those gifts Mother Nature gives us, we’re pretty excited about it.”

He points out how the overall effort to use biomass materials, such as corn stover, to make advanced cellulosic biofuels, is a win for the environment, a win for the economy, and a win for the advanced biofuels market.

Listen to the whole Agri-Pulse Open Mic interview with James C. Collins, Jr. here.

advanced biofuels, Audio, biofuels

Analysis: RIN Traders Predicting Biodiesel Market

John Davis

A new analysis from the University of Illinois shows traders in Renewable Identification Numbers (RINs) seem to be pretty good at predicting which way the biodiesel market will go. But is there some funny business going on to get those results?

The efficiency of price discovery in the RINs market is quite controversial at the present moment. In just the last few weeks the New York Times published a lengthy piece strongly hinting that the RINs market was being exploited by Wall Street banks for ill-gotten gains and two U.S. Senators asked regulatory agencies to launch investigations. Senator Grassley of Iowa framed the issue this way, “The EPA needs to provide assurances that this market is functioning for its intended purpose, rather than acting as a profit mechanism for Wall Street banks and other financial institutions.”

RINfig3
Figure 3 shows the difference between the blending margin and D4 RINs price from September 3, 2009 through September 26, 2013. The average differences by calendar year are as follows:

2010 +75 cents per gallon
2011 -8 cents per gallon
2012 +28 cents per gallon
2013 -10 cents per gallon

Since the tax credit is $1, there is a convenient interpretation of the averages for 2010 and 2012. Assuming the average differences should be zero in equilibrium, the averages indicate the markets’ assessment of the probability that the tax credit will be reinstated retroactively for that year. This suggests that RINs traders thought there was about a 75 percent chance the credit would be retroactively reinstated in 2010 and this chance dropped to 28 percent in 2012. Inspection of Figure 3 reveals there was also considerable variation in the markets assessment of the probability of reinstatement within each year. For example, in 2010 the market estimated the probability near 100 percent early in the year, but it dropped to as low as 40 percent around mid-year, and then recovered back to near 100 percent by the end of the year. There was a particularly sharp recovery in the probability assessment during October 2010.

The analysis concludes that the probability of the tax credit being approved legislatively tracked the ebb and flow of RIN prices, thus also tracking the political process. That allowed RIN traders to correctly predict RIN prices.

Biodiesel, RINS

2013 Solar Decathlon Underway in Cali

Joanna Schroeder

2013 solar Decathalon2The U.S. Department of Energy’s (DOE) Solar Decathlon 2013 has kicked off in Irvine, California and on display are solar houses designed and built by more than 1,000 college students from around the country. The best houses are one that are affordable, energy efficient, attractive and easy to live in.

“These inspiring collegiate teams show our onsite visitors and online Solar Decathlon audience around the world how efficient building design and clean energy products available today can help families and businesses save money by saving energy,” said Secretary of Energy Ernest Moniz. “The event provides student competitors with unique real-world training to become the clean energy workforce of the future and helps ensure that our nation remains competitive in the global race for clean energy.”

In addition to educating the public about money-saving and energy-saving opportunities currently available the competition engages students from across the nation and around the world to develop the skills and knowledge to become the next generation of architects, engineers and clean energy entrepreneurs. DOE says over the last decade, the competition has prepared approximately 17,000 students to become future innovators in clean energy technologies and efficient building designs that cut carbon pollution and help slow the effects of climate change to leave a cleaner, more stable environment for future generations. The Solar Decathlon also supports the Obama Administration’s goal of transitioning to a clean energy economy while saving families and businesses money.

Student teams in the 2013 competition span two continents, including teams from the United States, Canada, Austria, and the Czech Republic. Between October 3-13, 2013, the teams will compete in 10 contests that gauge each house’s performance, livability, and affordability, rewarding teams that build houses with estimated costs at or below $250,000. The teams will have to perform a variety of everyday tasks, including cooking, laundry, and washing dishes, to test the livability and energy use of their houses. The winner of the overall competition is the team that best blends affordability, consumer appeal, and design excellence with optimal energy production and maximum efficiency.Read More

Alternative energy, Clean Energy, Climate Change, Education, energy efficiency, Solar

GRFA Calls for Redaction of Biofuels & Security Report

Joanna Schroeder

The Global Renewable Fuels Alliance (GRFA) is demanding the High Level Panel of Experts on Food Security and Nutrition (HLPE) withdraw their Biofuels and Food Security report given its flaws and their refusal to release the report’s funding sources. The organization’s call to action comes as the Committee on World Food Security’s (CFS) annual Plenary gets underway in Rome, Italy.

Screen Shot 2013-10-07 at 10.15.39 AMBiofuel industry associations representing Canada, the United States and European Ethanol producers sent a joint letter to members of the HLPE Steering Committee highlighting the numerous flaws in the reports drafting process and demanded to know the sources of funding behind it.

“It is not surprising that the final HLPE report was flawed given the secretive nature by which it was funded and the inherent biases among the appointed members of the so-called Project Team,” said Bliss Baker, spokesperson for GRFA.

The open letter released by the GRFA slammed the panel for the manner in which the project scope was finalized, the apparent disregard for stakeholder feedback provided during consultations, the opaque and secretive “external review” of the final draft report, the non-disclosure of the reports financial donors and the veiled process by which the Project Team was selected.

“It became apparent early in the process that industry concerns were being dismissed without any explanation from the HLPE,” said Baker. “It is essential in any public policy process to explain decisions for accepting or rejecting recommendations from stakeholders, but regrettably, the HLPE did not believe that an open transparent process was required.”

Equally concerning to the GRFA was the secretive way the Project Team was selected. Key stakeholders should have been allowed to participate in selecting a Project Team, said Baker, but instead the HLPE “hand-picked” its members. This “hand-picked” team did not include a single expert from the biofuels industry but instead included a known biofuels critic who was the primary author of a highly controversial theory of predicting future land use patterns that has been widely criticized.

“Effective policy is best informed with sound science and an open, transparent, deliberative process that involves the public,” added Baker. The HLPE did not adhere to any of these principles and because of these short comings the HLPE should withdraw the report at the CFS Plenary until these deficiencies are addressed. Moreover, it is imperative that the HLPE disclose the financial donors who contributed to this report.”

biofuels, food and fuel, International

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFBroadwind Energy, Inc. has announced $106 million in tower orders from a U.S. wind turbine manufacturer. Broadwind will produce these towers in its Manitowoc, Wisconsin and Abilene, Texas. facilities. Since the start of 2013, Broadwind has recorded $306 million in new tower orders.
  • Canadian Solar has launched the Canadian Solar Residential Financing Program for the U.S. residential solar market, in partnership with Boston, Mass-based Admirals Bank.  The program is designed to make it easier for residential solar installers and developers to bring more solar projects to completion.
  • In an effort to incite discussion and share best practices surrounding energy and water conservation among industry innovators, AM Conservation Group, Inc., a company focused on energy and water efficiency solutions, has introduced the blog: “Conservation Think Tank: News, Ideas and Solutions for Energy and Water Company Thought Leaders.” Each week the Conservation Think Tank will post an article on topics ranging from industry trends and leaders to advocacy and best practices.
  • Vivint Solar, a leading full-service residential solar integrator, has announced plans to open a new office in Orange County, California. The company plans to hire up to 60 employees at a new Santa Ana-based regional office and provide its affordable, fixed price solar solutions to homeowners throughout the south coast. The launch coincides with the start of the U.S. Department of Energy Solar Decathlon at Orange County Great Park in Irvine, California, where the company is supporting the event through a team of volunteers giving tours of the solar-powered homes designed and built by 20 collegiate teams. The homes will be on public display through October 13th.
Bioenergy Bytes

Quest for Carbon Neutral Beer

Joanna Schroeder

Göss Brewery is one step closer to producing carbon neutral beer with the start-up of its new solar plant. The solar farm occupies nearly 1,500 m² and will generate a portion of the heat required for the brewing process. The brewery, owned by Brau Union Österreich and a member of the HEINEKEN Group, has embarked on a “Green Brewery” project to develop the leading CO2-netural brewery in Europe. This is the project’s most recent milestone.

Brau Union logoMichael Paula, responsible for the Energy and Environmental Technology department and representing Innovation Minister Doris Bures, drew the first climate-neutral beer. “The aim of our research support is to strengthen Austria as a business location. We are supporting Austrian companies to enable them to play a leading role in the fast-growing energy-technology sector in the future and are thereby securing and creating jobs,” said Paula.

Brau Union is backing a series of initiatives aimed at increasing the use of renewable energy sources and reducing the consumption of heat, electricity and fuel in the brewery process. In the case of Göss brewery, around 40 percent of its heat requirements are met from waste heat discharged from a neighbouring saw mill, and 90 percent of the waste heat generated in the brewing process is used to heat water.

At the beginning of this year a new boiling system was introduced in the brewing process, which helps to save just under 200,000 kilowatt-hours of power and over 6,400 m3 of water per year. In addition, the new solar plant will make an immediate contribution to the generation of environmentally friendly energy. The Göss brewery is also proud to use 100 percent Austrian raw materials, in recognition of which Austria’s best beer has been awarded the AMA seal by Agrarmarkt Austria Marketing.

As Brau Union continues to reach its goal of the carbon-neutral production of beer, they have compiled an own industry guide incorporating their key findings. In addition, the methods developed are also being used at the Puntigam and Schladming breweries.

International, Renewable Energy, Solar

NREL Calculates Emissions, Cost of Wind & Solar

Joanna Schroeder

According to new research from the Energy Department’s National Renewable Energy Laboratory (NREL), found that carbon emissions induced by more frequent cycling are negligible (<0.2%) when compared with the carbon reductions achieved through wind and solar power generation. Cycling occurs when a utility, to accommodate higher amounts of wind and solar power on the electric grid, must ramp down and ramp up or stop and start conventional generators more frequently to provide reliable power.

In addition, the study found sulfur dioxide (SO2) emissions reductions from wind and solar are 5 percent less than expected because of cycling of fossil-fueled generators. Emissions Emission Impacts of Cycling1of nitrogen oxides (NOX) are reduced 2 percent more than expected. The study also finds that high levels of wind and solar power would reduce fossil fuel costs by approximately $7 billion per year across the West, while incurring cycling costs of $35 million to $157 million per year. For the average fossil-fueled plant, this results in an increase in operations and maintenance costs of $0.47 to $1.28 per megawatt-hour (MWh) of generation.

“Grid operators have always cycled power plants to accommodate fluctuations in electricity demand as well as abrupt outages at conventional power plants, and grid operators use the same tool to accommodate high levels of wind and solar generation,” said Debra Lew, NREL project manager for the study. “Increased cycling to accommodate high levels of wind and solar generation increases operating costs by 2% to 5% for the average fossil-fueled plant. However, our simulations show that from a system perspective, avoided fuel costs are far greater than the increased cycling costs for fossil-fueled plants.”

Phase 2 of the Western Wind and Solar Integration Study (WWSIS-2) is a follow up to the WWSIS released in May 2010, which examined the viability, benefits, and challenges of integrating high concentrations of wind and solar power into the western electricity grid. WWSIS found it to be technically feasible if certain operational changes could be made, but the first study raised questions about the impact of cycling on wear-and-tear costs and emissions.

To calculate wear-and-tear costs and emissions impacts for the new study, NREL designed five hypothetical scenarios to examine generating up to 33 percent wind and solar energy on the U.S. portion of the Western Interconnection power system for the year 2020. This is equivalent to a quarter of the power in the Western Interconnection (including Canada and Mexico) coming from wind and solar energy on an annual basis. The study models cycling impacts representing a range of wind and solar concentrations between none and 33 percent, and is not an endorsement of any particular level.

The study assumes a future average natural gas price of $4.60/MMBtu, significant cooperation between balancing authorities, and optimal usage of transmission capacity (i.e., not reserving transmission for contractual obligations). Read More

Alternative energy, Electricity, Research, Solar, Wind

U of Cincy Team Captures Grease for Biodiesel

John Davis

cincy1A student team from the University of Cincinnati is being recognized for their idea to capture waste grease and turn it into biodiesel. The school’s Team Effuelent, led by students Ron Gillespie, Ethan Jacobs, and Qingshi Tu won the $40,000 prize in the Odebrecht Award for Sustainability Development Competition with their concept of “Using Trap Grease As the Raw Material for Biodiesel Feedstock Production.”

The team’s innovative Waste Grease Extraction process extracts substances such as fats, oils, and greases from the municipal wastewater stream and converts them into a low-cost biodiesel feedstock using processes compatible to the current biodiesel industry.

Not only does the WGE process generate a marketable product of value, it also results in lowered landfill costs for wastewater treatment plants and positively contributes to the environmental, economic, and energy sustainability of the United States.

Mingming Lu, associate professor in CEAS’ Department of Biomedical, Chemical, and Environmental Engineering, originally developed the novel process and serves as the team’s advisor. The students were awarded $20,000, Professor Lu receives $10,000, and another $10,000 goes to the University of Cincinnati.

Team Effuelent is now working on building a prototype system for the Waste Grease Extraction process.

Biodiesel, Research, University

Argentine Biodiesel Makers Vow to Fight EU Duties

John Davis

areu-flagCalling European Union punitive duties on their biodiesel bad for biodiesel overall on the continent, Argentine producers say they will fight them. This story from Reuters says the proposed $330-per-tonne duties on biodiesel imports from Argentina are seen by the Argentinians as unfair and bad for biodiesel in Europe as well.

“We will seek to defend ourselves against this decision, which we consider unfair,” Luis Zubizarreta, head of Argentinian biofuel body CARBIO, told Reuters.

“Clearly, Argentina will not be able to export so much as a litre to Europe, and European biodiesel prices will rise. We will have to produce less biodiesel,” he said.

If backed by EU governments at a vote later this month, the duties could be imposed by the end of November.

Similar duties are being proposed against Indonesian biodiesel. The two countries produce 90 percent of EU biodiesel imports.

Biodiesel, International

Study Refutes Land Use Change Myth

Joanna Schroeder

A recent report released from researchers in the Netherlands shows that current models assessing the impact of crops grown for biofuel production on land use (indirect land use change /ILUC) do not accurately reflect current production and land use realities. Given the impact of these models on bioenergy policy, the paper, “Biomass Research,” makes a strong case for updating the way in which the true benefits of biofuels are assessed. This Corn crop August 2013would help insure policy decisions and made with the understanding and consideration of the ethanol’s environmental benefits.

National Corn Growers Association (NCGA) Ethanol Committee Chair Chad Willis said, “Ethanol advocates have long understood the major impact that relying upon outdated data or inaccurate models can have on our nation’s biofuels policy and, at NCGA we work to correct the information and models. This study provides an academically rigorous examination of the specific areas in which ethanol modeling and data are currently lacking on a large scope.”

Farmers have made amazing strides to increase efficiency and sustainability in the past few decades,” continued Willis, and the models and information used to assess the impact of biofuel production should reflect these gains. American ethanol benefits our environment as well as our economy and our energy security. It only makes sense that our energy policy should take these incredible benefits into account thus maximizing them for the good of all Americans.”

Looking at land use and biomass production balances in 34 major biofuel-producing nations, the report concludes that increases in acreage devoted to biofuel feedstock production were more than offset by productivity gains on acreage devoted to food production between 2000 and 2010. These productivity gains were the result of the use of double cropping practices, yield gains and other increased efficiencies.

Additionally, the study also notes that during the same period, urbanization and other causes were responsible for the loss of much more agricultural land than biofuel feedstock production.Read More

Agribusiness, biofuels, corn, Environment, Indirect Land Use, NCGA