ACE Conference 2026

Minnesota Welcomes E15 With Open Arms

Joanna Schroeder

20131030_092937Minnesota welcomed its first E15 station with open arms this week. The Penn Minnoco service station in Minneapolis now has four dispensers selling E15 to drivers of vehicle model year 2001 or newer. The Penn Minnoco service station is located at 6001 Penn Avenue South in Minneapolis.

When asked by DomesticFuel why E15, station owner Rick Bohnen, who is also offering E30 said, “E15 gives my customers a price break while providing me with a competitive advantage.” Bohnen’s family has owned the fuel and repair station for more than 30 years and he has been telling his customers to use E15 because in his words, “ethanol is great fuel”.

The fueling equipment of the new Penn Minnoco service station was made possible, in part, through a public-private partnership between Bohnen and a coalition comprised of E15 Bargain!the American Lung Association in Minnesota, Minnesota Department of Agriculture, Growth Energy, Minnesota Biofuels Association and the Minnesota Corn Growers Association/Minnesota Corn Research & Promotion Council.

“Today is a great day for Minneapolis area consumers looking for more affordable fuel choices that are better for the economy and the environment. E15 is a proven fuel, a cheaper fuel, a cleaner fuel, and I know that it will be a major success for Penn Minnoco and its customers,” said Tom Buis, CEO of Growth Energy.

As part of the partnership, four additional retail locations are planned to begin offering E15 within the state by the end of the year.

biofuels, E15, Ethanol, Growth Energy

Legislation to Eliminate Corn Ethanol A “Killer”

Joanna Schroeder

Senator Feinstein (D-CA) and Senator Coburn (R-OK) are introducing legislation to eliminate conventional biofuels from the Renewable Fuel Standard (RFS). According to a story first published by Greenwire, the impending bill would leave the advanced biofuel targets in place, but would eliminate the corn-based ethanol target.

Corn crop“I think the mandate for ethanol, which is forcing a lot of additional use, is really not wise,” Feinstein told Greenwire.

Some may remember that back in 2011 Feinstein and Coburn teamed up and introduced a bill called the “Fuel Feedstock Freedom Act,” that according to the duo, was designed to allow for a more sensible implementation of corn-ethanol policy while encouraging greater competition in the pursuit of advanced biofuels. The Bill, that did not pass, would allow fuel markets to respond to consumer demand for ethanol free gasoline where it exists. In addition, the bill would have given individual states the option to not participate in the corn ethanol portion of the RFS. There is speculation that the new legislation may mirror some of the goals of this Bill.

“This legislation is incredibly short-sighted. This legislation is nothing more than a job killer that will also gravely damage innovation and the robust rural economy. More than anything, it seems like legislation is appeasing the wishes of Big Oil,” responded Tom Buis, CEO of Growth Energy in response to the news of the impending legislation.

“You cannot have advanced biofuel without conventional biofuel, and the reality is that if such legislation were to move forward it would embrace the status quo of our dependence on foreign oil, concede we no longer are serious about reducing greenhouse gas emissions and are seeking to pursue a policy that would result in massive uDont Mess with RFSpheaval and job loss in today’s booming rural economy.

“It appears to me, this legislation is nothing more than a large concession to Big Oil, which continues to have a stranglehold on the liquid fuels marketplace. Furthermore, this is a slap in the face to consumers who deserve a choice and savings when they go to fill up at the pump.”

For many years Feinstein has been a vocal critic of corn-based ethanol and has repeatedly called for changes to the RFS and the new legislation is the latest in her battle to modify the energy policy.

“This legislation is monumentally stupid,” said Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA). “Eliminating the conventional ethanol portion of the Renewable Fuel Standard would eliminate the opportunity to further evolve the biofuels industry and commercialize new technologies and feedstocks. We all understand that Senator Coburn just wants a world free of competition for his oil industry. But, Senator Feinstein professes to support second generation biofuels. What she is failing to understand, however, is that we will never see those technologies develop if the policy is gutted and the investment community is given the unambiguous signal that Congress is not serious about reducing our dependence on foreign oil.”

biofuels, corn, Ethanol, Growth Energy, RFA, RFS

Wind Farms in Northern Cape Move Forward

Joanna Schroeder

Three large-scale wind energy projects in the Northern Cape, South Africa with a total generation capacity of 300 megawatts is moving forward and on track to be fully operational in mid-2014. A consortium led by global wind and solar company Mainstream Renewable Power has been awarded Preferred Bidder by the Department of Energy in South Africa. The award was made under the third round of the South African Government’s Renewable Energy Procurement Programme. The Mainstream consortium was awarded 238 megawatts of wind and solar projects in the first round of the programme back in 2011.

The projects, which represent an investment of approximately ZAR 9 billion, are expected to reach Financial Close by August next year and commence construction shortly thereafter.

Mainstream Renewable PowerCommenting on the announcement, Eddie O’Connor, Chief Executive of Mainstream Renewable Power said, “The team here in Mainstream is delighted with our success today. I understand the quality was very high; there were 93 bids submitted, only 17 were successful today and we won three of those. Mainstream is now the leading developer of renewable energy in South Africa; we have three wind and solar projects due to be operational in the coming months and now a further three large-scale wind farms due to start construction next year. More than five years ago Mainstream identified the future potential of the South African market and we are delighted that the quality of our projects and the experience of our team has been recognised today.”

O’Connor congratulated the South African government for putting in place a “world-class” process and for the “superb manner” in which it has been executed. He noted that the win underpins the company’s long-term commitment to working with partners to bring the benefits of renewable energy, not only to South Africa but to the continent of Africa.

“This marks an extraordinarily successful time for Mainstream globally. This month we closed a €100 million equity investment with Japanese Trading House Marubeni Corporation, we signed a ground-breaking deal with Actis in Chile to build 600 MW of wind and solar projects by 2016; more than 500 private landowners have signed up for our 5,000 MW wind export project in Ireland and IKEA purchased our Carrickeeny wind farm in Ireland,” added O’Connor.

The wind farms awarded under this round are:

  • The 140MW Khobab Wind Farm located in the District Municipality of Namakwa in the Northern Cape.
  • The 140MW Loeriesfontein 2 Wind Farm located in the District Municipality of Namakwa in the Northern Cape
  • The 80MW Noupoort Wind Farm located in the Local Municipality of Umsobomvu in the Northern Cape
Electricity, International, Renewable Energy, Wind

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFAmerex Energy Services has hired three new team members. Stuart King has been appointed Vice President of Northeast Energy Consulting, Will Matthews has been appointed Director of Portfolio Management, and Brett Zeitz is Amerex’s newest Energy Consultant. All will report to Jeff Shoaf, SVP of Amerex Energy Services. Mr. King will be based in Connecticut, while Mr. Matthews and Mr. Zeitz will be based in Houston.
  • REF-2013 Moscow, Renewable Energy & Energy Efficiency Forum in Russia and CIS, will take place on November 12-13, 2013 in Moscow. The event is devoted to renewable energy and energy efficiency projects development in Russia and CIS. The event was organized by IBCentre in close cooperation with the Ministry of Energy of RF and the State Duma of Russian Federation and in partnership with the leading Russian and international Associations working for sustainable energy development. REF-2013 Moscow is the meeting place for professionals, whose activities are connected with the Russian market of energy efficiency, smart grid and renewable energy (solar energy, wind energy, small hydropower and energy from biomass).
  • POET-DSM Advanced Biofuels, a joint venture between U.S.-based POET and Dutch-based DSM, was named the “Bio-based Deal of the Year” Tuesday by GreenPower Conferences. The award recognizes “a deal that is of particular relevance for the long-term development of the bio-based industries.” It was announced during the World Bio Markets USA conference in San Francisco.
  • Chint Power Systems America has announced it will provide over 300 20kW inverters for PV installations across New Jersey. The projects include a variety of applications that reflect the broad flexibility benefits of string inverter architecture; a single inverter design can address rooftop, carport and ground mount applications of varying overall kW capacities. Chint’s 20kW platform has been independently tested by PHOTON Labs and published as a “Top 10” inverter of all models evaluated (as of November, 2011). It is a 600Vdc product with dual independent MPPT’s and integrated wire box with all fusing, DC and AC disconnects included. In 2013, CPS has launched 14kW 208Vac and 23/28kW 1000Vdc models – all UL approved.
Bioenergy Bytes

Renewable Energy in Mining Industry to Reach $4B

Joanna Schroeder

EmergingRenewables_IconAccording to a new report, “Renewable Energy in the Mining Industry” the worldwide market for renewable energy systems in the mining industry will grow from $210.5 million in 2013 to $3.9 billion in 2022. Today, less than 0.1 percent of power consumed by the mining industry is generated from renewable energy; yet, mining operations consume enormous amounts of power- as much as 400 terawatt-hours of electricity per year.

“The mining industry has clearly reached a tipping point, with a growing consensus that renewable energy at mine sites, both grid-tied and off-grid, is doable and, in many cases, desirable,” said Kerry-Ann Adamson, research director with Navigant Research, who conducted the study. “This understanding now needs to be coupled with an understanding of how best to deploy these solutions. Renewable energy developers are realizing that mining companies need solutions, not just technology.”

Of the renewable energy technologies in which the mining industry is investing, wind power is the technology nearest to eliciting wide-scale adoption. A number of mines are already utilizing large-scale wind power, but these sites were chosen based on extreme needs and/or ideal wind characteristics. According to the report, over the next 2 to 3 years, mining companies will begin deploying wind power for broader use rather than considering it only on a case by case basis.

“Renewable Energy in the Mining Industry,” analyzes the global market for renewable energy in the mining industry and provides an analysis of developments in the sector from a quantitative and qualitative perspective. Global market forecasts of revenue and capacity, segmented by region, technology, and investment scenario (base and aggressive), extend through 2022. The report also examines market and technology issues related to the adoption of renewable energy in the mining industry and profiles key industry players.

Electricity, Renewable Energy, Research, Wind

Arkansas Town to Brew Camelina into Biodiesel

John Davis

aaef_logoAn Arkansas town will soon be home to a new biodiesel refinery that makes the green fuel out of a new crop for the region, camelina. The Stuttgart (AR) Daily Leader reports DeWitt is home to the the first Farm to Fuel project, an Arkansas Advanced Energy Foundation (AAEF) initiative.

According to AAEF, the mini-biorefinery, operated by Johnny Davis, will utilize a technology developed by Springboard Diesel to produce small batches of biofuel with an annual capacity of 80,000 gallons per year. As demand increases, DeWitt will obtain a larger micro‐biorefinery designed by Dr. Srikant Gir and developed at the Marion Berry Renewable Energy Research Center at Mid‐South Community College. It will have a production capacity of 200,000 to 1 million gallons per year. Once DeWitt has outgrown the mini‐biorefinery, alt.Consulting will move it to develop the next Community of Innovation.

DeWitt became the first Community of Innovation after city leaders saw the opportunity in developing a biofuel resource. The fuel will utilize feedstocks from Camelina and waste vegetable oil. Once processed into ASTM standard biodiesel, it will be sold locally to power municipal trucks and equipment, school buses, farm vehicles and other private vehicles. Any excess fuel will be sold to fuel blenders in Arkansas and Memphis. And, because of no transportation costs and ready availability, the locally‐produced biodiesel will be price competitive in Delta communities with petroleum products while creating jobs and business opportunities locally.

City officials are looking forward to growing enough feedstock and making the refinery viable and eventually pass the technology on to another town.

Biodiesel

Biodiesel Supply & Demand Curves and RIN Pricing

John Davis

The latest in a series of thoughtful analyses by the folks at the University of Illinois Ag and Consumer Economics is out and shows the relationship between the biodiesel supply and demand curves and Renewable Identification Number (RIN) pricing. This article from Scott Irwin shows how RIN prices are made of two components – intrinsic and time value.

[T]he model in Figure 1 actually predicts the “intrinsic” value of biodiesel RINs. In options market parlance, this refers to the immediate value of exercising an option. This is equivalent to the loss blenders incur today by blending biodiesel, and it is represented by the blending margin. There is a second component of option value that is also relevant. This value is called “extrinsic,” or “time,” value and it reflects the value to an option owner of waiting until later to exercise the option when the intrinsic value may be even higher than it is today.

RINsupplydemand1

From a conceptual standpoint, RINs prices can be thought of as consisting of two components – intrinsic and time value. The intrinsic value should track current blending margins, and it was shown that this is generally true for D4 biodiesel RINS. The time value of RINs reflects the chance that blending margins will be even larger (bigger losses) in the future and it has typically represented about one-third of RINs prices. A particularly interesting dimension to RINs pricing right now is that time values have been driven basically to zero, precisely when there is great uncertainty about the outcome of EPA rulemaking and the status of the blenders tax credit. Variation in soybean oil prices adds to the uncertainty. Estimated supply and demand curves can be used to generate plausible D4 biodiesel RINs values for 2014 anywhere from $0.16 to $2.07 per gallon (in ethanol equivalents).

The piece goes on to show how it’s tough to evaluate the RINs market in relation to high vs. low blending margin scenarios, central to determining the time value of a RIN.

Biodiesel, RINS

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