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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

RFA National Ethanol Conference Registration Opens

John Davis

NEC1Time to finalize your plans to attend the Renewable Fuels Association’s 19th Annual National Ethanol Conference with the theme of Falling Walls, Rising Tides, Feb. 17-19, 2014. Conference registration is now open, and the RFA needs you at the JW Marriot in Orlando, Fla.

Now more than ever our industry should be proud of its success in bringing down barriers that limit our production and use, and which have resulted in noticeable reductions in demand for fossil fuels and imports, expanded markets around the world for both fuel and food, and consumer choice for renewable, domestic fuel options. We have answered the call with the introduction of E15, a proven fuel that is cost-effective for both consumers to use and retailers to install and provide. We see continued growth in E85 due to positive economics, and opportunities for advanced ethanol have never been brighter as the Renewable Fuels Standard (RFS) rises steadily over the coming years.

This is one event you sure don’t want to miss, as more than 1,200 attendees are expected for the two days chocked full of valuable, impactful ethanol expertise and numerous networking opportunities. Click here to register.

conferences, Ethanol, Ethanol News, National Ethanol Conference, News, RFA

Defunding Biodiesel, Ethanol Center Draws Rep’s Ire

John Davis

SONY DSCThe North Carolina legislature’s lack of approving funds for a center that promotes the development of biodiesel and ethanol in the state draws the ire of one of its own members. In an opinion piece for the Herald Sun of Durham, N.C., State Representative G.K. Butterfield says the Biofuels Center of North Carolina in Oxford will soon close for good without the funding, and he says that is short-sighted for a job incubator that has created more than 21,000 clean energy jobs in the state.

[T]he misguided leadership in the General Assembly has voted against job creation by defunding the Biofuels Center in the state’s FY2014 budget… We simply cannot afford to reject job creation and the building of new industries in our state by standing idly by and allowing the General Assembly to shut the door on expanding employment opportunities and innovation…

With the help of the Biofuels Center, our state has become a leader in renewable fuel production. The Biofuels Center has invested $10.1 million in 71 projects throughout North Carolina dedicated to working with farmers to develop new biofuel crops and working with companies to build new manufacturing capacity to produce those fuels, especially in rural communities like many of those I represent in eastern North Carolina. Our state has five major biodiesel producers and leads the nation in biodiesel stations. When superstorm Sandy hit in 2012, Triangle Biofuels in Wilson provided significant amounts of biodiesel to the Northeast to respond to critical fuel shortages.

Butterfield points out that the Biofuels Center has been operating on a $4 million annual budget, less than two one hundredths of a percent of the entire state budget, while leveraging hundreds of millions of dollars in private investment and creating hundreds of jobs in new energy markets. He concludes that “North Carolinians deserve better.”

Biodiesel, biofuels, Ethanol, Government, Research