Government Lowers Cellulosic Biofuels Targets

John Davis

eiaIn the wake of the Environmental Protection Agency (EPA) issuing its final rule for the 2013 Renewable Fuel Standard (RFS), the government revised down targets for cellulosic biofuel use this year. The U.S. Energy Information Administration reports the new rule sets a 6 million gallon target for cellulosic biofuels use in 2013, less than half what was proposed just six months ago… and well below the 1 billion gallon target specified in the Energy Independence and Security Act of 2007:

By law, EPA can lower the required volumes of advanced biofuels and total renewable fuels by up to the amount that it reduces the required volume of cellulosic biofuels. EPA chose not to reduce the advanced biofuels and total renewable fuels targets for 2013, leaving the required volume of total renewable fuels in 2013 at the 16.55 billion gallons specified in EISA 2007. However, the final rule states that EPA anticipates the need to adjust those targets for the 2014 RFS program year, for which EISA 2007 specifies a total renewable fuels target of 18.15 billion gallons. EPA’s forthcoming notice of proposed rulemaking for the 2014 RFS program year will provide further information.

As discussed in previous TIE articles, a May 2013 letter from EIA cited in EPA’s final RFS rule, and recent testimony by EIA Administrator Adam Sieminski, production of cellulosic biofuels has grown at a much slower pace than envisioned in EISA 2007. The RFS consists of four nested volumetric targets for specific types of biofuels. By 2022, EISA 2007 specifies a 36 billion gallon target for total renewable fuels in transportation fuel, including 21 billion gallons of advanced biofuels, of which 16 billion gallons are cellulosic biofuels.
EIArfs
The EIA goes on to say that some parts of the RFS have been hard to implement because of lower-than-anticipated gasoline consumption, as well as issues with the E10 blend wall and using higher blends in current vehicles and infrastructure.

biofuels, Cellulosic, Government

Growth Areas in Ag-Related Jobs

Talia Goes

zp-nhOur latest ZimmPoll asked the question, “What is the biggest growth area for ag jobs?”

Our poll results:

· Precision Technology 22%
· Management & Biotechnology 17%
· Agronomy 13%
· Biofuels, Engineering & Media 9%
· Advertising/PR 4%

If you are looking for a job in agriculture, or seeking to fill a position in your company or organization, check out AgCareers.com.

With the constant negative pushback from activists regarding the techniques and technologies being used to increase yields in both crops and livestock, our new ZimmPoll is now live and asks the question “How important are biotechnology and antibiotics for food production?”

ZimmPoll is sponsored by New Holland Agriculture.

ZimmPoll

In Center Ring: Biofuels Versus Big Oil

Joanna Schroeder

The National Conference of State Legislators kicked off in Atlanta, Georgia yesterday and today the group has invited Geoff Cooper with the Renewable Fuels Association (RFA) along with Patrick Kelly of the American Petroleum Institute (API) to debate the Renewable Fuel Standard (RFS). According to Cooper, the invitation was extended because state legislators want to learn more about the program and how it affects its constituents throughout their states.

Biofuels v Big OilThe RFS, says Cooper, is one of the most successful, if not the most successful, energy policy the U.S. has ever legislated. Coupled with the rapid growth of the biofuels industry – biofuels have gone from around 2 percent of the fuel supply to 10 percent in a little over six years – the oil industry is now taking note of its lost market share and is now attempting to put their feet in the sand to keep from losing more.

While the biofuels industry continues to fight for the RFS while also educating consumers and legislators about biofuels and the success the policy is having, Cooper said the top priority of the industry right now is to expand the use of E15 and E85. E15 will get the industry over the so-called “blend wall” while higher blends such as E85 will enable all the fuel required by the RFS (36 billion gallons by 2022) to be blended with the fuel supply.

“I think a lot of people had written E85 off over the past several years, but we’re in an environment today where E85 prices are very competitive to E10 on a energy equivalent basis,” explained Cooper. “As a result, we are seeing renewed interest in E85, unlike anything we’ve seen in the last five to ten years. E85 sales are really jumping in markets where it is readily available and consumers understand it and there is some level of competition.”

Cooper is confident that the more legislators learn about now the RFS is working, the more supportive they will be in keeping the policy in place and moving forward.

Listen to my interview with Geoff Cooper here: Biofuels Versus Big Oil

Audio, biofuels, E15, E85, Ethanol, RFA, RFS

Thailand Plans to Up Biodiesel Output, Mandate

John Davis

803531.aiThailand plans to crank out more biodiesel and increase the amount of the green fuel required to be in the mix. This article from Platts says the Southeast Asian country will increase biodiesel production targets from 5.9 million liters per day to 7.3 million liters per day by 2021. Right now, Thailand cranks out 2.8 million liters per day.

Plans to increase the country’s biodiesel production target — which has to be approved by parliament — comes as the energy ministry announced last week its target to roll out B10 biodiesel — a blend of 10% palm-oil based biodiesel and 90% diesel — nationwide by 2019.

Thailand currently has a B5 biodiesel mandate in place, where diesel sold at the pump is blended with 5% palm methyl ester. The government is aiming to roll out a B7 mandate in January next year.

“We’ve sent clear signals to car makers and oil traders in Thailand that we’ll proceed with higher biofuel content in the coming years,” Energy Minister Pongsak Raktapongpaisal said at an energy forum last Thursday, according to a report by the Bangkok Post August 9.

Thailand’s 13 biodiesel refineries are capable of producing 5.4 million liters per day but could double capacity if farmimg inefficiencies are reduced.

Biodiesel, International

Big Oil Files Waiver to Cap Ethanol

Joanna Schroeder

Growth_Energy_logo-1Big Oil has been defeated time and time again in court related to the growth of the biofuels industry, but they have not been deterred. This week, the American Petroleum Institute (API) and the American Fuel and Petrochemical Manufacturers (AFPM) filed a partial waiver of the Renewable Fuel Standard (RFS), requesting that total ethanol requirements be dropped to 9.7 percent.

According to a press statement, AFPM is calling on EPA to exercise its authority to waive the 3.35 billion gallons from the 18.15 billion gallon 2014 renewable fuel mandate to “avoid the severe economic harm that will result from exceeding the 10 percent ethanol blendwall.” Beyond 10 percent, says the statement, the corrosive nature of ethanol renders the blended fuel incompatible with today’s engines, vehicles and the multi-billion dollar infrastructure in place throughout the nation. Waiving the 2014 volumes is the only available solution to avert the potentially disastrous implications of the blendwall.

“The negative impacts of the RFS will be extreme and will undoubtedly hurt consumers. If EPA does not act, the inability to blend the statutory-mandated amount of ethanol could lead to domestic fuel supply shortages and ultimately cause severe economic harm to consumers and the economy,” said AFPM President Charles T. Drevna.

In response, Tom Buis, CEO of Growth Energy an organization representing the ethanol industry, said, “The actions by API and AFPM are designed with one goal in mind –to eliminate any competition from clean, green biofuels in the liquid transportation fuels marketplace. It is time that oil companies and special interests stop worrying about maintaining their monopolistic practices and allow competition and choice in the marketplace. Not only should we provide consumers a choice and savings at the pump, we must stop putting our eggs in one basket when it comes to a national energy policy.”

Buis concluded, “Biofuels are a clean burning, reliable and sustainable alternative and it is time we start recognizing their cost savings and numerous benefits and end our addiction to a fossil fuels and Big Oil’s price gouging.”

biofuels, E15, Ethanol, Growth Energy, RFS

American Ethanol Inducted in NASCAR Hall of Fame

Joanna Schroeder

766American Ethanol driver Austin Dillon unveiled a display at the NASCAR Hall of Fame to celebrate his win at the Mudsummer Classic held at the Eldora Speedway on July 25, 2013. The exhibit features a jar of dirt Dillon scooped up near the finish line with the Eldora golden shove, his winner’s trophy and the No. 39 American Ethanol truck he drove to victory, becoming the first driver to win a NASCAR Camping World Truck Series race on dirt.

“Dillon’s win in Eldora was not only a victory for the up-and-coming star, it was also a victory for American Ethanol,” said National Corn Growers Association NASCAR Advisory Committee Chair Jon Holzfaster, a farmer from Paxton, Neb. “By making history in the American Ethanol truck, Dillon drew a bright spotlight to ethanol’s ability to fuel victory even under the toughest of conditions. This attention is now compounded as NASCAR Hall of Fame visitors will clearly see how ethanol is not only a winner for NASCAR but for all Americans who want to drive using a high performance, lower emission fuel.”

This was the first NASCAR series race held on a dirt track in 43 years, featuring a mix of NASCAR Sprint Cup racers, dirt track veterans and rising stars. Dillon pulled out the victory overcoming a 19th place start.

The race in Eldora was much anticipated by NASCAR fans eager to see the return to dirt, with the race trending worldwide on Twitter and a ratings boost for SPEED network’s primetime coverage. SPEED’s coverage, which prominently featured the American Ethanol logo throughout the race, included commentary from racing greats Tony Stewart, Brad Keselowski and Clint Bowyer.

American Ethanol, corn, Ethanol, NASCAR, NCGA

Leading Canadian Biodieseler Nearly Doubles Sales

John Davis

biox-logo1The owner of Canada’s largest biodiesel plant announced it nearly doubled its sales in the third quarter of this year compared to the same time a year ago. This Wall Street Journal article says BIOX Corporation also has good news about its pipeline project to move biodiesel across Canada:

“The construction of the inter-terminal pipeline between our Hamilton facility and Shell Canada Limited’s distribution terminal is ahead of schedule. We expect the project to be completed within the month and sales to commence shortly thereafter,” said Kevin Norton, Chief Executive Officer of BIOX. “We believe that this supply agreement could consume a significant portion of our Hamilton production in time. In the broader biodiesel market, biodiesel and RIN values have improved throughout 2013, which is reflected in our sales this quarter. The supply agreement, together with the improvement in market values, has strengthened our underlying fundamentals as a quality supplier and partner within the industry.”

Sales were $19.3 million and $50.2 million, respectively, for the three-month and nine-month periods ended June 30, 2013, compared with $10.1 million and $52.8 million for the corresponding periods in 2012. The 90% increase in sales for the three-month period ended June 30, 2013, was primarily the result of the 56% increase in litres of biodiesel sold in addition to higher revenue per litre sold.

BIOX also reports better margins on the biodiesel it is selling has helped boost its operating income levels compared to a year ago. The report goes on to say that the increase in the Renewable Fuels Standard (RFS2) has helped strengthen the overall North American biodiesel market.

This spring, BIOX announced it would supply biodiesel to Shell Canada Limited through the pipeline mentioned above.

Biodiesel, International

Natural Power Wins Award & New Contract

Joanna Schroeder

Natural Power has been in the news lately with several announcements. The company has been recognized by The Green Organisation, with its Green Apple award, for its overall environmental performance.

London Array Offshore & Final turbine assembly 104In addition, the company has been appointed by First Flight Wind Ltd, the developers of Northern Ireland’s first offshore wind farm, to provide bird and marine mammal advisory and survey works over the Wind Resource Zone. Flight Wind, a consortium comprising of B9 Energy, DONG Energy and Renewable Energy Systems Ltd (RES), was awarded a Wind Resource Zone of approximately 438km² off the Coast of County Down, Northern Ireland, by The Crown Estate in Autumn 2012.

Starting in July 2013, Natural Power’s experienced Ecology team commissioned a local Kilkeel vessel, to carry out the surveys, which are expected to last until late 2014. The boat-based surveys will see ornithologists and marine mammal observers undertaking surveys each month to collect data suitable for analysis and impact assessment.

In other news, Natural Power announced plans to open a new office in Stirling, Scotland this fall. The office is expected to be the single largest renewable energy consultancy office in Scotland, with capacity for 140 staff. Around 90 staff will transfer from the company’s current central belt locations, leading to significant job creation opportunities over the next 24 months.

Electricity, Energy, International, offshore wind, Wind

Patriot Renewable Fuels: A 5 Year Retrospective

Joanna Schroeder

Patriot Renewable Fuels Corn DeliveryPatriot Renewable Fuels based in Annawan, Illinois came online on August 31, 2008, during the first financial crisis of the industry and the beginning of the financial crisis in America. But this didn’t keep the biorefinery from success, and later this month the plant is celebrating its fifth anniversary. I spoke to Gene Griffith today to get a retrospective on the landscape of the ethanol industry then and now.

Back in 2002 when plans were underway for the ethanol plant, Griffith said they were looking for new markets for corn as well as a way to boost economic development in the local community. He also said during this time, there was a lot of attention on the need to reduce dependence on foreign oil.

Griffith notes that at this time all the news around ethanol was positive. He said since the time they started thinking about the plant to now, the ethanol industry has grown tremendously – over seven times – an almost unheard of growth. And in that time, said Griffith, ethanol went from 1-2 percent of total fuel to about 10 percent of total fuel use in the U.S. and this has changed the dynamics of the motor fuel industry.

“And Big Oil looks at this growth and says our market is declining anyway because the vehicles are getting better gas economy,” continued Griffith causing the amount of gas use Patriot Renewable Fuels DDGsto decline. This coupled with the increase of ethanol use to E15 for approved vehicles, the ethanol industry can continue to grow. But until then, Griffith says its putting pressure on his plant as well as the industry.

The plant is buying 40 million bushels of corn per year and over five years has purchased 200 million bushels. Griffith says when they ran the numbers that equated to $1.1 billion dollars spent on the purchase of corn from local growers during the past five years. He also noted that the rural economy has been benefited. The 60 jobs they provide has paid over $18 million in salary and benefits during the past five years.

On the ethanol production side, they have produced 550 million gallons of ethanol and that came to $1.2 billion in ethanol sales. “I really think our board is proud of the fact that we could go from a grassroots like this to that kind of production,” said Griffith.

He believes his plant has great news to share not only with his local community but with communities around the world, and urges other ethanol plants and those in the industry to publicly share their stories.

To learn more, listen to my interview with Gene Griffith here: Patriot Renewable Fuels: A 5 Year Retrospective

Patriot Renewable Fuels will be hosting an open house and celebration on Thursday, August 22 and Friday, August 23, 2013 from 10:00 am to 3:00 pm CST. Click here for more information.

Audio, biofuels, Ethanol

Why Sugarcane Ethanol is Essential to RFS

Joanna Schroeder

There is a significant amount of attention being paid to the Renewable Fuel Standard (RFS) but one area that hasn’t been talked about much is the role of sugarcane ethanol in the RFS. To learn more, I spoke with Leticia Phillips the representative for North America with UNICA – the Brazilian Sugarcane Industry Association.

She said that under the RFS, Brazilian sugarcane ethanol is classified as an “other advanced biofuel” and by 2022 this category of fuel is to contribute 4 billions gallons to the fuel supply. Phillips said that today, sugarcane Leticia Phillipsethanol is the best performing biofuel commercially available today. According to Environmental Protection Agency (EPA) calculations, sugarcane ethanol reduces greenhouse gas emissions (GHG) by at least 61 percent when compared to traditional fuel, i.e. gasoline.

Today, sugarcane ethanol represents 3 percent of all fuels under the RFS, but it is actually one quarter of the advanced pool of the fuels for the RFS. Phillips says it plays a pretty important role and provides a secure flow of biofuels.

Brazilian sugarcane ethanol has been under fire because its not “American-made” and also because many argue it doesn’t have the GHG emission reductions that the EPA says it does. I asked Leticia why UNICA believes push-back on the biofuel is misplaced.

Leticia said from her viewpoint is that the RFS doesn’t specify that the fuel must be made in America, but rather the goal is to reduce carbon emissions. “The goal should also be to help America become energy secure and energy diverse,” explained Phillips. She said that energy security and energy independence both mean looking at where the country can get better performing biofuels for the program.

While she understands some of the push-back from the market, she stressed that a bigger problem with the RFS today is the so-called “blend wall” issue coupled with the fact that American fuel use is dwindling – a scenario no one anticipated when the RFS was created.

To learn more, listen to my interview with Leticia Phillips here: Why Sugarcane Ethanol is Essential to the RFS

For more information on sugarcane ethanol, visit UNICA’s sugarcane website.

advanced biofuels, Audio, Brazil, Ethanol, feedstocks, RFS, UNICA