Former San Juan Biofuels Facility Selling at Lender Owned Auction

Talia Goes

REVISED Maas-300x600-Dove-Creek-9-13-2Maas Companies of Rochester, Minn., will liquidate the former San Juan Biofuels Oilseed Crush Facility located in Southwestern Colorado at a Lender Owned Auction.The auction will be conducted on-site at the plant, 7099 CR H, Dove Creek, Colorado on Tuesday, Oct. 8 at 10 a.m. The auction offers on-site and internet based bidding opportunities.

San Juan Biofuels was originally a local coop targeting biodiesel production from sunflower oil.Due to the economic conditions the biodiesel plant equipment was never purchased.The coop altered its focus to include: food grade vegetable oils, animal feed, renewable heat, electricity and wood pellets.The plant operated until 2011, and now the equipment is ready for a new owner.The auction will sell the plant for sale in bulk lots, including over 70 lots of equipment, two buildings and ancillary equipment selling in bulk lots or as an entirety with a land lease or to be moved.The real estate is on a long term lease with Dolores County Development Corporation, buyers are encouraged to contact the auction company to explore the land lease opportunities.

A complete package detailing the bidding process is available by contacting the auction company directly at 507-285-1444.Information can also be found at the company’s website: www.maascompanies.com.

Agribusiness, biofuels

American Ethanol Powered by New Holland

Cindy Zimmerman

producers-clubNew Holland is proud to be powering American Ethanol as the premier equipment partner for Growth Energy and its member ethanol plants.

“We’re pushing forward with a positive message about ethanol and working together with not just the plants but also the producers,” said Luke Johnson, Growth Initiatives sales manager with New Holland, at the kickoff of a New Holland American Ethanol Producers Club event at the Absolute Energy plant in Lyle, Minnesota.

new-holland-mn-lukeThe producers club is a way for New Holland to show its support of the farmers who produce the corn that makes American ethanol. “We have a great discount structure program set up for them,” Luke said. “Our partnership is circular for everyone. The producer helps the ethanol plant and gets better prices in the corn market because of the industry, we support them with a fantastic discount program and support the industry at the same time to keep the positive message out there.”

The event at Absolute Energy is the 12th one that New Holland has held this year and Luke says they expect to do more next year. “Everything about it has been positive,” he said.

Listen to my interview with Luke here: Luke Johnson, New Holland
New Holland American Ethanol Producers Club photo album

Agribusiness, American Ethanol, Audio, corn, Ethanol, Farming, Growth Energy, New Holland

World’s Largest Community Wind Farm to be in Texas

John Davis

triglobalturbine1Everything’s bigger in Texas, right? Well, that certainly seems to be the case for a massive wind farm slated for West Texas. Tri Global Energy, LLC has created Hale Community Energy, LLC (HCE) to be the managing company for a wind farm exceeding 122,000 acres owned by more than 340 landowners and having more than 450 shareholders.

As the world’s largest community-sponsored wind farm, it has the potential to produce 1,100 megawatts (MW) of renewable energy with approximately 500-650 turbines, to be developed in five phases of construction.

“The actual construction of the wind turbines will bring a lot of temporary jobs into the area,” Curtis King, Tri Global’s Senior Vice President of Investor Relations said. “And once we get the wind farm up and running, there will be at least 100 permanent jobs. These will be high-paying jobs. It’s not something that will be around for just 10 years — wind farms will be a permanent fixture that will go on for several generations.”

The first 200 MW phase is expected to be up and running in late 2015, with the entire project to be operational by mid 2018.

HCE will also interconnect two national grids within one project area, a key, according to company officials, to making sure the wind energy gets to the urban areas that need it.

Wind

EPA Expands Heating Oil Definition to Allow RINs

John Davis

epa-logoThe U.S. Environmental Protection Agency (EPA) is expanding the definition of heating oil as part of the Renewable Fuel Standard (RFS) program. This means that renewable heating oil, such as bioheat, a mixture of biodiesel and heating oil, could fall under the category to allow for Renewable Identification Numbers (RINs).

The expanded definition of heating oil will encourage the growth of renewable fuel production in the heating oil market by adding value to renewable fuel oils through the generation of RINs. In particular, the expanded definition could spur the production of advanced or cellulosic biouel, providing additional opportunities for regulated parties to meet their annual RFS volume obligations.

EPA is also finalizing specific registration, reporting, product transfer document, and recordkeeping requirements applicable specifically to the new category of fuel oils, which are necessary to demonstrate that the fuel oil was or will be used to heat buildings for climate control for human comfort in order to generate RINs.

mcadams2The news was welcomed by Michael McAdams, president of the Advanced Biofuels Association:

“The Advanced Biofuels Association applauds EPA for expanding the definition of heating oil to include renewable fuel oil used to warm buildings or other facilities where people live, work or recreate. This newly expanded definition will help sustain growing renewable fuel production, particularly of advanced or cellulosic biofuels, in the heating oil market.”

Biodiesel, Government, RINS

Pure Biodiesel OKed for Deutz Agripower Engines

John Davis

deutzlogoSome agricultural diesel engines made by German manufacturer Deutz are greenlighted for running on pure biodiesel. In this article from Biodiesel Magazine, testing funded by the German oilseed organization Union zur Förderung von Oel- und Proteinpflanzen (UFOP) shows Deutz Agripower engines of the series TCD 7.8 L6, TCD 6.1 L6 and TCD 4.1 L4 can use B100.

In the course of this project, the engines were subjected to extensive field tests in practice, with a conclusive result for Deutz common rail injection systems and exhaust gas aftertreatment systems…

From the point of view of UFOP, verification for meeting the exhaust stage EU COM IIIB applicable since 2011 with biodiesel as a pure fuel is given upon successful completion of this project. This exhaust stage requires the use of exhaust gas aftertreatment systems. Here, Deutz AG offers around 4 to 8 liters of capacity in agricultural applications for the so-called SCR technique (selective catalytic reduction). The SCR system used operates with a 32.5 percent aqueous urea solution (Adblue), which is injected into the exhaust gas upstream of the catalytic converter with the aim of converting nitrogen oxides into harmless nitrogen.

The study goes on to show that a high quality B100 was very good at lowering particles in exhaust. UFOP added that this only underscores the need to strengthen biodiesel quality standards.

Agribusiness, Biodiesel, International

Nebraska Corn Board Highlights Biofuels’ Benefits

John Davis

ne-corn-newNebraska is home to a lot of corn and soybeans, and the Nebraska Corn Board, with an admitted stake in the success of ethanol and, indirectly, biodiesel, is making the case for the green biofuels. The group does a good job of laying out the facts about just how sustainable and renewable ethanol and biodiesel really are.

Greenhouse gas (GHG) emission standards have been a hot topic over the last few years, which is good news for renewable fuels such as ethanol and biodiesel. The ethanol industry is producing fuel that is up to 59% lower is GHG emissions than regular gasoline. While biodiesel reduces lifecycle GHG emissions by up to 86% compared to regular diesel fuel.

Not only are the emissions drastically lowered, the energy balance ratios of both biofuels are leaps and bounds ahead of petroleum. Energy balance ratios deal with how much energy it takes to produce something compared to what is gained. For instance, for every one unit of energy it takes to produce petroleum oil, 0.88 units of energy are created, which creates a negative energy balance. Meanwhile, ethanol creates up to 2.3 units of energy for every unit of input and biodiesel’s energy balance is a whopping 5.5 to 1.

Plenty of people might be using the green fuels and not even know it. Ron Pavelka, a soybean farmer and a district director for the Nebraska Soybean Board, points out that B5 biodiesel is labeled as #2 diesel fuel. “So lots of consumers are experiencing the benefits without even knowing that they actually are helping our environment by using biodiesel.”

The column goes on to say more choices of flex-fuel vehicles are giving more consumers the chance to run higher blends of ethanol, all the way up to E85 and see the benefits themselves. And the board concludes saying that these consumers are seeing the benefits and are asking for more biofuels at the pump.

Biodiesel, corn, Ethanol, Ethanol News, Soybeans

REG Chief: Biodiesel Set to Meet RFS Obligations

John Davis

OhEETVAs the government considers the 2014 volume obligation for biodiesel under the Renewable Fuel Standard (RFS), the man in charge of the nation’s largest biodiesel producer says his green fuel is ready to meet the mandates. On the E&ETV show OnPoint, Dan Oh, CEO of the Renewable Energy Group (REG) said biodiesel can be relied upon to provide advanced biofuels.

“We’ve commercialized over 15 years. We have a large installed base. We now are able to produce from a wide variety of raw material. And that really matters when you are thinking about keeping costs down and having broad choices in terms of how you can produce. So the study on your production has been result of innovation.”

Oh just recently met with Office of Management and Budget officials on the RFS2 on the 2014 volume obligation for biodiesel and says the attitude toward biodiesel is very good in Washington, D.C.

I think the tone is favorable and supportive. You can look at the 13 final rule on the RVO that came out with EPA. They certainly highlighted in there how strong biodiesel is, and what a good position it’s in right now. It’s very much not part of the blend wall discussion because we don’t have a blend wall. You know, we can blend it at high levels in varying ways around the country, and it is such a good carbon intensity count that people really like it.

Oh says his industry is asking for a “robust increase” in biodiesel’s obligations, and biodiesel is ready to step in if other advanced biofuels can’t meet their obligations.

Biodiesel, Government, REG, RFS

BIO Tells EPA to Just Say No to Big Oil’s RFS Waiver

John Davis

biologo2Big Oil is trying to get out of its obligations under the Renewable Fuels Standard (RFS), but an organization with close ties to the biofuels industry is calling on the government to stand its ground. The Biotechnology Industry Organization (BIO) is asking Environmental Protection Agency (EPA) Administrator Gina McCarthy to reject the recent petition from American Petroleum Institute and American Fuel and Petrochemical Manufacturers for a waiver of the 2014 volume obligations under the RFS. In an 11-page letter to the EPA, Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section said that Big Oil already enjoys great flexibility in planning and choosing how it will comply with the RFS, shooting holes in the petroleum industry’s argument that compliance would hurt the U.S. economy.

“BIO urges the EPA to deny the joint petition for several reasons. First, the petitioners do not meet the requirements to file the joint petition. The joint petition is also premature. The petitioners cannot demonstrate harm when the 2014 renewable volume obligations (RVOs) have not even been formally proposed.”

Erickson continues the 11-page letter, writing:

“The reality is that because they have blocked investment in infrastructure and created marketing challenges for higher blends of biofuels, the petitioners are now requesting the Administrator waive the 2014 RVOs to 9.7 percent of the domestic fuel supply. They created the very situation from which they are requesting relief.”

Erickson outlined the options Big Oil has, including accumulating Renewable Identification Numbers (RINs) to meet its 2014 RFS RVOs. And he says “while some individual refiners may choose to restrict U.S. fuel supply as a compliance strategy, market competition and the increasing production of biofuels will work in tandem so such a restriction will not harm the U.S. economy or consumers.”

Erickson concludes saying that the oil companies have had five years to prepare for the 2014 obligations but chose not to, mostly to protect their monopoly on energy.

“The petitioners and their members should not be rewarded for these efforts.”

BIO, Government, Oil, RFS

Senator Calls for Review of RINS Market

Cindy Zimmerman

stabenow1Senate Agriculture Committee chair Debbie Stabenow (D-MI) is asking the Commodity Futures Trading Commission (CFTC) to review allegations of manipulation in the markets for Renewable Identification Numbers (RINs), the tracking mechanism to ensure petroleum blenders and refiners meet their requirements under the Renewable Fuels Standard.

Press reports have highlighted potential speculation and manipulation of the unregulated markets, possibly contributing to recent market volatility and spikes in price.

“I would like the CFTC to help determine whether factors other than supply and demand have been causing extraordinary volatility in the price of RINs and to what extent fraud and manipulation have been affecting the price of RINs,” Stabenow wrote to CFTC Chairman Gary Gensler. “I am concerned that a lack of transparency in these markets has made them more susceptible to manipulation. If this is the case, it is a problem that must be identified and fixed.”

growth-millerJim Miller, vice president and chief economist with Growth Energy, notes that RINS were something the oil industry requested when the RFS was being drafted to provide flexibility. “But there has been what appears to be some gaming, both in terms of speculation, as well as hoarding of RINS,” he said in an interview today with Domestic Fuel. “I think it’s interesting that the price of RINS skyrocketed just about the same time that the House was holding hearings on the RFS.” Since that time the price of RINS has dropped to about a third of what it was earlier this year. “That seems to me to be a bit odd,” he added.

Listen to or download Miller’s comment here: Jim Miller, Growth Energy

Audio, Ethanol, Ethanol News, Government, Growth Energy, RFS, RINS

Analysis: Ethanol Cuts Gas Prices by $.50-1.00

John Davis

verlegerA new analysis shows that, thanks to ethanol, we’re paying $0.50-1.50 per gallon less for gasoline. The Renewable Fuels Association provided a short summary of the analysis by renowned energy economist Philip K. Verleger, former energy advisor to Presidents Ford and Carter.

“The implication for world consumers is clear… [T]he US renewable fuels program has cut annual consumer expenditures in 2013 between $700 billion and $2.6 trillion,” writes Verleger in a short commentary available on pkverlegerllc.com. “This translates to consumers paying between $0.50 and $1.50 per gallon less for gasoline.” The commentary summarizes a more detailed analysis that was included in Verleger’s August Petroleum Economics Monthly newsletter.

Crude oil prices would be between $15-$40 per barrel higher today without the substantial volumes of ethanol that have been added to petroleum inventories since enactment of the RFS. According to the commentary, the RFS today has added “…the equivalent of Ecuador’s crude oil output to the world market at a time of extreme tightness.”

The analysis credits in large part the Renewable Fuels Standard (RFS) that has helped keep higher commercial crude oil inventories, and thus, prices lower.

Ethanol, Ethanol News, RFA