New Biodiesel Plant Boon for Canadian Soybeans

John Davis

gfoSoybean farmers north of the border are getting a great boon in the construction of what will be Canada’s largest biodiesel plant producing about 40 million gallons of biodiesel each year. Grain Farmers of Ontario welcomed Great Lakes Biodiesel’s start in Welland, Ontario that uses soybeans as a feedstock.

“This locally produced, renewable, and sustainable fuel is a win for the environment, for jobs and for the provincial economy,” says Henry Van Ankum, Chair, Grain Farmers of Ontario.

Grain Farmers of Ontario and Soy 20/20 have worked together to complete extensive research to encourage the Ontario Government that a made in Ontario biodiesel mandate is good for the provincial economy and good for the environment. Nationally, Canada has a 2% biodiesel mandate, and with the expansion of production in Ontario, Grain Farmers of Ontario hopes to see the implementation of a 2% provincial biodiesel mandate.

Van Ankum believes a mandate will demonstrate a real commitment to biodiesel.

Biodiesel, International, Soybeans

Congressman Makes Case to Colleagues for RFS

John Davis

loebsack1A congressman from Iowa makes the case that the Renewable Fuel Standard (RFS) is working and encourages his fellow lawmakers to support it. In an open letter titled “Dear Colleague: Why the last two months show the RFS is working,” Rep. Dave Loebsack points out that the recent flexibility in the RFS, the government looking into renewable fuel distribution barriers, and oil earnings not taking the bemoaned but not-to-fruition dips because of Renewable Identification Numbers (RINs) show a healthy RFS.

One of the important features of the RFS is that Congress provided significant flexibility to adjust targets based on anticipated production. On August 6, 2013, the EPA did just that, releasing the final 2013 RFS volumes at adjusted levels. The EPA decreased the required cellulosic biofuels amounts, as well as extended the deadline to comply with the 2013 standards by four months. This gives refiners additional time to blend renewable fuel or purchase RINs for 2013 compliance. Additionally, the EPA signaled it would remain flexible as it develops the 2014 RFS levels.

On August 22, 2013, the Federal Trade Commission (FTC) announced that it would look into anti-trust violations for limiting consumer choices at the pump. This comes as opponents of the RFS continue to talk about a hypothetical E10 blend wall that would allegedly create a barrier to using more biofuels in the domestic fuel supply. What’s clear is that these concerns are shortsighted. There are simple ways to eliminate any potential blend wall that include letting consumers dictate what fuel options they have at the pump. This market-based approach means consumers should have the option to put more biofuels into their gas tanks if they want.

And another strong quarter of earnings for the oil companies shows a pretty good Chicken Little impression when Big Oil tried to forecast “staggering” economic consequences of the RFS.

These recent events in regards to the RFS show that the law is working as intended. We must continue to support the RFS to spur continued development of homegrown fuels, lower gas prices, create good jobs, and promote economic development in our communities.

Government, RFS

Solar Group Looks to Head Off US-China Trade War

John Davis

seiaA pending trade dispute between the U.S. and China could hurt solar power in both countries, but an industry group believes it has a plan to head off the problem. This story from Bloomberg says the Washington-based Solar Energy Industries Association has floated a proposal to eliminate tariffs on solar gear, as well as putting together a fund with contributions from China to help U.S. solar equipment makers.

“The problem we have right now is that the trading rules are not working well,” John Smirnow, vice president for [SEIA], said in a phone interview. “Solar has a very complex global supply chain” and relying on the existing system to settle trade disputes isn’t working, he said…

The U.S. Commerce Department a year ago set penalty rates for Chinese producers, including Suntech Power Holdings Co. and Trina Solar Ltd. (TSL), after determining the companies had benefited from government subsidies and had “dumped” their products onto the U.S. market at below the cost of production.

In July, China began imposing duties as high as 57 percent on U.S. polysilicon imports.

The U.S. industry plan would abolish the U.S. duties on solar cells from China, as well as China’s tariffs on U.S.-made polysilicon. Instead, China’s solar-energy companies would establish a fund in the U.S. that American solar-cell manufacturers could draw from to help them “scale-up,” Smirnow said. While the size of the fund would be negotiated based on market estimates, it would probably be in the hundreds of millions of dollars over the next three years, he said.

The plan also calls on Chinese manufacturers to fund a Solar Development Institute, benefiting American solar-energy manufacturers and developing a collaboration between the U.S. and Chinese industries. This plan is similar to a deal with Brazil over cotton.

International, Solar

Oil Cos. Ordered to Up Biodiesel Blend in Indonesia

John Davis

Indonesia flag1Two major foreign oil companies operating in Indonesia are being told to comply with that country’s law and increase the amount of biodiesel in the mix at their filling stations. Biofuels International reports PT Shell Indonesia and PT Total Oil Indonesia must increase to at least a 10 percent biodiesel mix in all diesel sold by this coming January or face sanctions, including business license revocations or suspensions of operations.

‘We will inspect their petrol stations from time to time to ensure the regulation is being followed,’ director general of renewable energy and energy conservation Rida Mulyana was quoted as saying.

The regulation also requires a minimum of 10% biodiesel in diesel fuel mixes used for industrial and commercial purposes and 20% for those used in power plants.

Indonesian officials believe the companies are blending as little as 1 percent biodiesel right now.

Biodiesel, International

Ethanol Group Wants Apology After Big Oil Compares RFS to Cancer

John Davis

api-gerard1Just when you thought it couldn’t get any lower, Big Oil manages to take it to another level… a much lower level. In a story from Reuters, the American Petroleum Institute’s Jack Gerard is quoted as comparing the Renewable Fuel Standard (RFS) to cancer.

While talking about how Congress should address ethanol Renewable Identification Numbers (RINs), Gerard is reported saying, “It’s a little like putting a band aid on cancer. We believe we need to eradicate the cancer and that’s the Renewable Fuel Standard.”

The outrageous comparison drew the ire of Brian Jennings, Executive Vice President for the American Coalition for Ethanol (ACE), who called for an apology:

BrianJennings1“That is an unfortunate analogy coming from the top lobbyist for Big Oil, whose members sell a product that causes cancer. We’ve never suggested ethanol is a cure-all, but the RFS has proven to be a very effective treatment to the damage done to our environment and economy by oil. Cancer is a tragic and deadly disease affecting too many American families, we ask that API and its members apologize for making this offensive comparison.”

There ya’ go, Big Oil. Stay classy.

ACE, Ethanol, Ethanol News, Oil, RFS

Former Phillips 66 Marketer Shuns Big Oil for E15

John Davis

e15-zarcoA man who used to market fuels under the Phillips 66 name has decided to forgo the Big Oil brand so he can offer consumers the choice of E15 ethanol.

“They changed the rules mid-stream for what they would allow me to do once E15 came out,” said Scott Zaremba, a Kansas retailer who sold fuel under the Phillips 66 brand for 28 years. But during a recent Fuels America news conference, he said he abandoned that well-known brand because of the rules that made it impossible for him to offer the greener choice of fuel for any 2001 or newer vehicle. “And so I re-branded my locations to Zarco USA and created a brand of American Fuels.”

zarco66-logoScott, who is a second-generation fuel marketer, admits it’s been a tough road as Big Oil continues to put up roadblocks to consumer choice. But he remembers the Arab Oil Embargo of the early 1970s, 1991’s Gulf War, and the economic collapse of 2008 – all with the common theme of energy needs, high prices, and the lack of opportunity to get oil. He says it was necessary to offer something else, becoming the first retailer in the nation to offer E15. He hopes others will follow his lead and break with Big Oil and choose the cleaner, more economical and stable renewable fuel, ethanol.

“We see the great opportunity now of being able to give the consumer a choice, reduce our dependency on foreign oil, and move forward being able to have something for the consumer that will give them higher octane in a cleaner burning product, and give stability to our economy.”

You can hear more of Scott’s remarks here: Scott Zaremba, Zarco USA

You can also read his blog here.

Audio, E15, Ethanol, Ethanol News, Oil

Study: Algae-based Biofuels Cut CO2 by 50-70%

John Davis

ABOA new study shows that biofuels made from algae can reduce life cycle carbon dioxide (CO2) emissions by 50 to 70 percent compared to petroleum fuels. And according to the Algae Biomass Organization, citing the study in the journal Bioresource Technology, algae biofuels are approaching the Energy Return on Investment (EROI) values that conventional petroleum has.

“This study affirms that algae-based fuels provide results without compromise,” said Mary Rosenthal, ABO’s executive director. “With significant emissions reductions, a positive energy balance, nutrient recycling and CO2 reuse, algae-based fuels will be a long-term, sustainable source of fuels for our nation.”

The study, “Pilot-scale data provide enhanced estimates of the life cycle energy and emissions profile of algae biofuels produced via hydrothermal liquefaction (HTL),” is a life cycle analysis of an algae cultivation and fuel production process currently employed at pre-commercial scales. The authors examined field data from two facilities operated by Sapphire Energy in Las Cruces and Columbus, New Mexico that grow and process algae into Green Crude oil. Sapphire Energy’s Green Crude can be refined into drop-in fuels such as gasoline, diesel and jet fuel.

The study found that when produced at commercial scales, algae technologies can be expected to be better than first generation biofuels when considering greenhouse emissions and on par with the return on energy investment when compared to those first generation biofuels. This is the first study to analyze real-world data from an existing algae-to-energy demonstration scale farm.

“These real-world data from demonstration scale facilities gave us new insight and allowed us to understand how scale will impact the benefits and costs of algae-to-energy deployment.” said lead author Andres F. Clarens, Assistant Professor of Civil and Environmental Engineering at the University of Virginia, Charlottesville. “These results suggest that algae-based fuels made using HTL have an environmental profile that is comparable to conventional biofuels.”

algae, biofuels, Carbon, Environment

EPA Report Recommends Better Monitoring of RFS

John Davis

epa-logoA new internal report recommends the Environmental Protection Agency improve its monitoring of the Renewable Fuel Standard (RFS) program. This article in Biodiesel Magazine reports the EPA’s own Inspector General conducted the audit and made the recommendation in response to the generation of millions of dollars of fraudulent renewable identification numbers (RINs).

According to the report, the EPA did not track submission of third-party engineering reviews or annual attest engagements because it does not have an electronic monitoring system for those reports. Until these materials are tracked, the Office of the Inspector General said the agency can’t be sure that program participants are complying with regulations. However the EPA recently implemented electronic reporting requirements for attest engagements and said it intends to do the same for engineering reviews by the end of the year.

The report also notes the investigation was unable to determine if there is overlap in parties completing the third-party engineering reviews and attest engagements. In addition, it specifies that regulations currently do not preclude the same third party from completing multiple requirements and other reporting responsibilities, allowing for potential overlap. This could result in a conflict of interest if the same third party reviews its own work.

The IG recommended that the agency modify existing reporting systems, as well as electronic submission of all reporting requirements for the RFS, including third-party engineering reviews and attest engagements. The EPA says it agrees and is already addressing these issues.

Biodiesel, Ethanol, Ethanol News, Government, RFS, RINS

Renewable Fuels Association Chooses 2014 Leaders

John Davis

RFA-logo-13Some familiar faces will stay in leadership roles for the Renewable Fuels Association (RFA), as the group elected its officers to the Board of Directors during today’s annual RFA membership meeting held in Minneapolis, MN. Neill McKinstray, President of the Ethanol Group, The Andersons, Inc., remains Chairman of the RFA Board of Directors for a second year after previously serving as Vice Chairman.

“Ethanol has proven to help families, rural communities, and consumers across the country. It reduces prices at the pump, revitalizes rural communities, and makes America safer by decreasing our dependence on foreign oil. The battle we are in will only continue to escalate and it is vitally important that the RFS remain in place.” McKinstray stated. “The RFA is a strong and vocal advocate for the ethanol industry and I look forward to another year working side by side with RFA’s highly professional staff and other producers to continue the growth and evolution of this vital industry. We all know what is ahead and I look forward to facing those challenges head on.”

McKinstray is joined by:

• Vice Chairman Randall J. Doyal, CEO of Al-Corn Clean Fuel in Claremont, Minnesota.

• Treasurer Walter Wendland, CEO of Golden Grain Energy in Mason City, Iowa.

• Secretary Mick Henderson, General Manager of Commonwealth Agri-Energy in Hopkinsville, Kentucky.

• President Bob Dinneen, CEO of the Renewable Fuels Association, Washington, DC.

conferences, RFA

Absolute Energy Hosts New Holland Ethanol Producers Club

Cindy Zimmerman

Nearly 200 area farmers attended a New Holland American Ethanol Producers Club event Wednesday at Absolute Energy, an ethanol biorefinery located near Lyle, Minnesota.

schwarkThe event, which was the 12th held at ethanol plants around the country this year, was designed to introduce producers who provide corn for the plant to the partnership between New Holland, Growth Energy and American Ethanol that offers equipment discounts. It also encouraged those farmers to communicate with their members of Congress the importance of maintaining the Renewable Fuel Standard.

“Growth Energy, the Renewable Fuels Association, Iowa Renewable Fuels Association – they’re working tirelessly every day in support of agriculture and the ethanol industry,” said Absolute Energy president and CEO Rick Schwark. “But there’s nothing like the grower talking to his congressman. It really does have an impact.”

Absolute Energy is a 125 million gallon per year ethanol plant on the Iowa-Minnesota border. Schwark says they additionally produce about 350,000 tons of distillers grains and 4.5 million gallons of corn oil annually – and they help boost the local economy. “We started in 2006, we’re owned by 470 local residents – 75% of those folks are farmers – we’ve had great economic success here and we’re very proud that those economic dollars are staying here in our local community,” he said.

Listen to or download my interview with Rick here and watch the video below of his remarks at the event: Interview with Rick Schwarck, Absolute Energy
New Holland American Ethanol Producers Club photo album

Audio, Ethanol, Ethanol News, Growth Energy, New Holland, Video