Call for Brazil to Reinstate Fuel Tax Policy

Joanna Schroeder

The Brazilian Industry Sugarcane Association (UNICA) is calling for the return of the ICMS tax policy that creates incentives to use ethanol over gasoline. When the tax policy is in place, funds generated from the fuel tax are used to subsidize public transportation. UNICA notes that the policy is a way to generate positive economic, social, environmental and public health benefits. The Association’s recommendation came on the heels of a study conducted by the Fundação Getúlio Vargas (FGV) on behalf of UNICA.

“We insisted that the recognition of so-called positive externalities of ethanol, through public policy and differentiated taxation, would be an important step towards returning to the competitiveness clean and renewable fuel to the base of cane sugar. The FGV study sugarcaneshows that it is possible to start down this path, with important benefits for society,” said Elizabeth Farina, the president of UNICA.

Until 2007, fossil fuels (gas) were taxed more heavily than renewable fuels (ethanol). Farina notes that reinstating this tax structure would also have significant environmental impacts, something that has not been considered as part of the benefits of the tax policy.

“We often hear very naturally that the calculation to be done in time to fuel the car is 70 percent, i.e. ethanol should not cost more than 70 percent of the price of gasoline. Except that this calculation does not take into account the severe environmental damage caused by the increase in the use of gasoline and reduction in the use of ethanol, especially in large cities,” said Farina.

A recent study released by the Health and Sustainability Institute points out that 4,655 people died due to poor air quality in the state capital in 2011 – a total more than three times the number of deaths in traffic accidents. Farina says that the damage goes beyond environmental issues. Currencies are wasted to import gasoline, as demand could be being fueled by ethanol, a industry employing more than a million Brazilians and benefits over a thousand municipalities throughout the country.Read More

advanced biofuels, Brazil, Ethanol

Clean Energy Fuels Distributing “Waste” Natural Gas

Joanna Schroeder

Clean Energy Fuels Corp. has announced that it will be the first company to commercially distribute a renewable natural gas vehicle fuel, called Redeem, made from waste streams such as landfills, large dairies and sewage plants, directly to fleets around the country. In addition, natural gas fleets will be able to purchase Redeem at the 35 public Clean Energy stations throughout California.

“It’s a landmark day for Clean Energy as the first company to make this revolutionary and renewable transportation fuel made from waste available to our customers,” said Andrew J. Littlefair, president and CEO of Clean Energy. “Our goal is to produce and distribute 15 CE-Sacramento-CA-Refuse-Truck-RedeemSticker-1million gallons of Redeem in our first year, which can make significant progress towards achieving California’s climate change goals and prove that this is a viable, cleaner and abundant alternative fuel source for our future.”

Clean Energy is staking its position in the renewable fuels market through a significant investment in natural gas fueling infrastructure, including 400 fueling stations throughout the nation, as well as in the development of multiple biomethane production facilities that will produce Redeem.

“California’s leadership in addressing the threat of climate change and its commitment to reduce greenhouse gas emissions makes it the ideal state to launch Clean Energy’s Redeem fuel,” said Harrison Clay, president of Clean Energy subsidiary Clean Energy Renewable Fuels. “Redeem is the lowest carbon footprint fuel commercially available and the only affordable renewable fuel for heavy duty trucks. We believe this creates an environmental and economic incentive for companies inside and outside California who are looking to make a major reduction in the greenhouse gas emissions from their fleet operations while still saving on their fuel bill. Redeem makes that possible.”

According to California Air Resource Board CARB( estimates, Redeem sourced from landfill gas can enable up to a 90 percent reduction in carbon emissions when displacing diesel or gasoline in compressed natural gas (CNG). Clean Energy Fuels estimates a fleet that consumes 1,000,000 gallons of gasoline per year can reduce their greenhouse gas emissions by approximately 9,700 metric tons by switching to Redeem.Read More

Compressed Natural Gas (CNG), Waste-to-Energy

Darling Closing Deal to Buy Renderer for Biodiesel

John Davis

darlingBack in August, we told you about Darling International Inc.’s bid to buy Canada-based Rothsay, the rendering and biodiesel division of Maple Leaf Foods Inc. Darling is now expected to close that deal to give the company animal fats for biodiesel feedstock on October 28, 2013.

Rothsay is the leading recycler of animal by-products in Canada and provides an essential service for the efficient and environmentally responsible collecting, processing and recapturing of edible and inedible by-products. Rothsay processes raw materials into finished products of fats and proteins. Rothsay has a network of five rendering plants in Manitoba, Ontario and Nova Scotia and a biodiesel operation in Quebec, Canada. Rothsay employs approximately 550 people, who will transition to Darling once the transaction closes.

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. In addition, the Company provides grease trap collection services and sells used cooking oil collection equipment to restaurants.

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, International

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFEdeniq, Inc., has announced the receipt of notice of allowance from the U.S. Patent and Trademark Office for the patent, “Materials and Methods for Converting Biomass to Biofuel.” The patent covers certain core equipment and process technology used in Edeniq’s Cellunator offering, Pathway integrated platform, and continuous cellulosic sugar production process. Cellunator increases ethanol yield by two to four percent by optimizing starch conversion. The Pathway platform combines the Cellunator technology with an enzyme cocktail to break down corn kernel fiber, releasing cellulosic sugars into the fermentation process.
  • Don’t miss out on the F.O. Licht’s Ethanol Latin America 2013, being held December 2-4, 2013 in Cali, Columbia. Attendees will receive a free copy of F.O. Lichts Sugar & Ethanol 2014 report. In addition to the conference, there is a pre-conference ethanol technology production day where attendees will visit an ethanol plant followed by a production efficiency workshop. Click here for more information and to register.
  • BlueFire Renewables has integrated a synergistic wood pellet production plant to its facility in Fulton, Mississippi. The reconfigured design will be a 9 million gallon per year ethanol plant integrated with a 400,000 ton per year wood pellet plant. The pellets will be sold under long term contracts into the European mandated renewable energy market.
  • Intermolecular and RUSNANO, the Fund for Infrastructure and Educational Programs, has announced the signing of a joint development agreement between Intermolecular and Ulnanotech, the leading Russian Federation nanocenter based in Ulyanovsk. Ulnanotech will leverage leading-edge development platforms purchased from Intermolecular to accelerate research and development (R&D) efforts around glass coatings, advanced power electronics, photovoltaics and displays. In addition to providing advanced development platforms to Ulnanotech, Silicon Valley-based Intermolecular will assist the company in developing and executing new business opportunities and programs. Intermolecular will share in potential future profits from service and licensing revenue associated with those activities.
Bioenergy Bytes

Biodiesel Imports Drop Sharply in July

John Davis

eiaNumbers from the U.S. government show biodiesel imports, including all biomass-based diesel like renewable diesel, dropped sharply in July. This story in Biodiesel Magazine says the Energy Information Administration (EIA) showed imports of biomass-based diesel at about 14.2 million gallons in July, less than half of June’s 28.6 million gallons.

Indonesian biodiesel made up the majority of July’s imports, coming in at slightly more than 8.5 million gallons. Imports from Germany totaled 3.15 million gallons, while Norway and Canada together shipped about 2.5 million gallons to the U.S.

U.S. biodiesel exports also fell from June, although not by quite as much. The EIA data shows a total of 17.9 million gallons of exports in July, although the administration only explicitly lists roughly 16.4 million gallons of biomass-based diesel destined to specific countries. These figures are down from nearly 25 million gallons in June. More than 11 million gallons of U.S. exports went north to Canada, while close to 4.5 million gallons was shipped to Gibraltar. Taiwan received 630,000 gallons of U.S. biodiesel, while Australia was sent 168,000 gallons.

Other renewable diesel imports also fell in July, with 15.3 million gallons imported in July versus nearly 22 million gallons in June.

Biodiesel, Government

Busting Big Oil’s Bogus Claim with Real Ethanol Test

John Davis

irfadc1Members of the Iowa Renewable Fuels Association (IRFA) made a 1,000-mile trip from Des Moines to Washington, D.C. to use a real world situation to bust a bogus claim by Big Oil. In an effort to scare consumers away from ethanol in general and E15 in particular, the oil companies put together a report that showed vehicles using ethanol had a 10 percent cylinder leakdown that could potentially leave motorists stranded by the side of the road. But the IRFA says their real world testing of vehicles, as well as the fact that millions of vehicles across the country are running just fine on ethanol, and presumably the same amount of cylinder leakdown, shows that it’s just a scare tactic.

“If they were right, the car we drove from Des Moines, Iowa to Washington, D.C. would not have run. It would have stranded us on the side of the road,” says Monte Shaw, IRFA Executive Director. “The testing they did doesn’t exactly equate to anything meaningful in the real world.”

Monte says they duplicated the oil companies’ Coordinating Research Council (CRC) testing of eight vehicles and did find the cylinder leakdown, but he points out that can be a problem with any fuel, and it doesn’t mean the vehicle will die on you.

“Every day [the cars running on E10] are taking kids to school, they’re driving people to work, they’re taking families on vacation, and in the case of the vehicle we used, just about every weekend the owner of it uses it to pull his 21-foot pontoon boat to a lake anywhere in the Midwest. These are cars that work,” he says.

irfadc2Monte says the real goal of the petroleum companies is to scare people, in particular members of Congress, into not allowing E15, even though it has proved as reliable as E10 ethanol is. The IRFA group even toured around D.C. a bit, talking to congressional aids and tourists, telling them about the benefits of ethanol, and even taking a little time to stop at one famous landmark to show “Tugger,” the Jeep’s nickname, a monument to a pretty truthful guy.

“When we were in front of the Washington Monument, we distinctly heard the car say, ‘I cannot tell a lie. Big Oil is misleading Congress about E15.'”

Listen to my entire conversation with Monte here: Monte Shaw, IRFA

Audio, E15, Ethanol, Ethanol News, Iowa RFA, Oil

Consumer Funding Opportunity for Military Solar Project

Joanna Schroeder

Mosaic is offering an opportunity for consumers to invest in a U.S. military solar project. Accredited Investors throughout the country, along with non-accredited investors in California, can put their dollars to work by investing in the addition of solar panels on military housing. Mosaic is offering investments in a 12.3 Megawatt solar photovoltaic (PV) energy installation across 547 homes at Joint Base McGuire-Dix-Lakehurst. This base, located in New Jersey, is the first joint Army, Air Force and Navy base in the United States. Investors will earn a competitive rate of return while bringing homegrown renewable power to military families.

Investors can invest as little as $25 in the project. They will earn estimated net returns at a variable interest rate of LIBOR plus 2.25% annually for the first four years, rising to 1 month LIBOR + 2.50% for the final three years of the seven-year term. Newly registered investors can earn a $10 investment bonus through October 10, 2013.

Mosiac Fort Dix solar project“Our nation’s energy sources and our national security go hand in hand. The military is at the forefront of developing and deploying clean energy technologies that support troop readiness and energy independence,” said Tonya Johnson, who lives on the military base with her family. “I love having solar on my rooftop.”

The solar panels will be secured on the rooftops of 547 homes of U.S. service members and their families. The solar installations will meet 30 percent of their electricity needs and save the housing developer and owner, United Communities, $1.3 million per year in energy costs.

The Department of Defense has committed to deploying renewable energy and has a goal of powering at least 750,000 home by 2025 with solar energy. The Sunshot program was created to help reduce the cost of solar, and Mosaic was granted $2 million in June 2013.

“The US military knows better than anyone the importance of energy independence,” said Billy Parish, President of Mosaic. “Mosaic is pleased to offer more Americans the opportunity to tangibly support this by investing in rooftop solar energy for military families. As a father, I’m working everyday to create a secure home, nation, and planet for my children.”

Mosaic is financing this new solar housing project in partnership with True Green Capital Management, a New York-based private investment firm, and CIT, a bank holding company with more than $44 billion in assets. The installation is owned by equity sponsor True Green Capital Management. In addition, CIT Energy served as Sole Lead Arranger in a $24 million senior secured credit facility provided by CIT Bank, the U.S. commercial bank subsidiary of CIT Group Inc.

Alternative energy, Electricity, military, Solar

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFMounting Systems is introducing two new PV racking systems during the Solar Power International trade show October 21-24, 2013 being held in Chicago, Illinois. Dubbed Alpha+ (Alpha plus) and Tau+ (Tau plus), the new pitched roof racking systems employ Mounting Systems’ all-new Clickstone technology. This new connection technology gives Photovoltaic system owners and installers a higher level of installation speed, simplicity and economy. An updated version of the Mounting Systems Quick Configurator planning tool with greater functionality and an improved user interface will also be introduced.
  • Good & Quick located in Nevada, Iowa has announced it has sent in its registration to offer E15 to 2001 and newer vehicles.
  • Valeo is inviting engineering students to take part in the global Valeo Innovation Challenge. The goal is to design equipment that, between now and 2030, will make the car more intelligent and intuitive. For the initial selection rounds, engineering students are to develop bold, revolutionary solutions for the society of tomorrow. The 20 finalist teams will then create a model in the format of their choice. Each team will be given €5,000 to put their idea into practice and build a functioning demonstrator. The three finalist teams will present their projects to the Challenge jury of Valeo experts and external partners, chaired by Valeo CEO Jacques Aschenbroich, at the 2014 Paris Motor Show.
  • The 14th Annual Alberta Power Summit will take place November 12-13, 2013 at the Metropolitan Conference Centre in Calgary (Canada). Registration is open and keynote speakers include The Honourable Ken Hughes (invited), Alberta Minister of Energy; and Dana Woodworth, Alberta Deputy Minister of Environment.
Bioenergy Bytes

BDI Upgrading Biodiesel Plants in US & UK

John Davis

BDIlogoA pair of biodiesel plants, one in the U.S. and the other in the UK are being upgraded. Biodiesel Magazine reports Austria-based BDI-BioEnergy International AG will upgrade and get back to running an unnamed plant in Atlanta (suspected to be Renewable Energy Group’s currently idled 15 MMgy Atlanta-based biodiesel facility) and beef up the British plant’s (also unnamed) purification capabilities.

BDI stated it has been commissioned to carry out basic engineering assignments at the Atlanta-based biodiesel plant, a prerequisite for successfully implementing its RetroFit Program at the site. “The aim is to modernize the plant, which is out of operation at the moment, in such a way that a profitable restart of production can be guaranteed,” BDI stated.

BDI has also been commissioned by an unnamed British biodiesel manufacturer to implement a biodiesel purification unit. With the help of this optimization unit, the contaminant content of the biodiesel, particularly the residual monoglycerides, will be reduced to a level that is far lower than the relevant limits specified by the strict European biodiesel quality standard. This project will guarantee not only a considerable improvement in quality but also an increase in the output of the biodiesel plant.

The two jobs have a value of about $540,000.

Biodiesel, International

Report: Renewable Energy Gains Market Share

John Davis

Renewable energy sources, particularly solar, wind, and biofuels, continue to make gains when it comes to the share of energy produced and used in this country. According to SUN DAY Campaign, a non-profit research and educational organization, the latest numbers from U.S. Energy Information Administration (EIA) shows through the first half of this year, renewable energy made up 10 percent of U.S. energy consumption, 12 percent of domestic production and 14 percent of net electrical generation.

eiaCompared to the same time frame in 2012, overall renewable energy production, including conventional hydropower, was 2.00% higher while production from non-hydro renewables grew by 4.13%. Specifically, solar grew by 32.46% in 2013, wind by 20.14%, geothermal by 0.89%, and biomass by 0.42%. Hydropower slipped by 2.59% and biofuels by 5.92%.

Among the renewable energy sources, hydropower’s share during the first half of 2013 was 30.18%, biomass 25.26%, biofuels 20.18%, wind 18.80%, solar 3.19%, and geothermal 2.39%.

Production from all renewable energy sources, including conventional hydropower, is about 60% higher in 2013 than it was in 2003 while production from non-hydro renewable energy sources has more than doubled.

Over the past decade, domestic energy production from wind has increased by a factor of nearly 16 while output from both biofuels and solar is now about five times higher than in 2003. Geothermal has also grown – by about 30% – while biomass and hydropower have remained largely unchanged.

Domestic renewable energy production is outpacing both fossil fuels (11 percent) and nuclear (about 1 percent). Ken Bossong, Executive Director of the SUN DAY Campaign, says renewables are the real growth industries in the energy market over the past decade.

“If recent trends continue, they will eventually eclipse both fossil fuels and nuclear power.”

biofuels, biomass, Geothermal, Hydro, Solar, Wind