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

Woman Abducted By Alien: Oil to Run Out by 2026

Joanna Schroeder

*BREAKING NEWS*

Tiffany Hoffinhoffer was driving home near midnight from a work trip when she pulled over for fuel at a rural gas station located just outside Jewell Junction, Iowa. Tired and wanting to get home, she was going through the motions of filling up her gas tank when she says suddenly a bright purple light descended on her. Cupping her hands over her eyes and looking at the sky, the next thing she knew she was waking up in a blue hinged “auditorium” like space, bound to a chair-like contraption floating above a blackish wet and rippling body of liquid.

© Copyright 2010 CorbisCorporationAs told to DomestifcFuel.com, hearing sounds she looked out into the darkness and when her eyes focused she was staring at hundreds of toddler-sized beings with blue bodies, clear green eyes and dressed in Romanesque white robes.

“I was first confused, then terrified,” said Tiffany. “The last thing I clearly remembered was filling my Toyota Corolla’s gas tank with 93 octane premium fuel.”

Calm as she told the story, she said she began to struggle but heard a calming voice telling her she was safe. Then she said, as fast as her fear arrived, it vanished.

“I was told that I had been chosen to deliver an urgent message to the people of Earth.”

“If we don’t stop using oil, then it will run out by 2026,” explained Tiffany who said she told the aliens that planet Earth had hundreds of years of oil left. But the aliens said that Earthlings who thought this were delusional.

The alien, who later said his name was Infinity and was in charge of bringing new alternative energy technologies to Earth, also told her coal would run out by 2032 and natural gas would be gone by 2045.

StoryCityIAHP“I’m not sure why they picked me,” said the Story City, Iowa housewife. “I’m just a stay-at-home mother trying to raise my three children and pinch every penny I can while the cloud of recession still hovers over America. I mean, why me?”

As her story goes, Tiffany says Infinity told her she was the perfect messenger because mothers tend to make all critical household decisions and pay the family’s bills and they would be the first to notice increasing energy costs.

“Women are the agent of change,” Infinity told her.

He said that I, along with my family and friends, could save society, as we know it, by sharing my story. “If we don’t change our ways, the Earth as we know it will end due to intermittent energy and liquid fuel shortages that will cause energy wars and food shortages.”

“I know most people will believe this is a hoax,” added Tiffany, “but when Infinity placed his hand on my shoulder asking for my help, I knew I had to do something and accepted the mission.”Read More

Commentary, Miscellaneous, Renewable Energy

Land Availability Should Determine Biomass Use

Joanna Schroeder

According to a paper published by the nova-Institute on agricultural feedstock use in industrial applications, efficiency and sustainability assessed on a case-by-case basis Global Prod Capacity by region 2015should be the sole criteria in judging the choice of feedstock used. The paper reviewed the “food versus fuel” arguments surrounding feedstocks to help shed light on the debate on how feedstocks should be used. The institute further stressed that the real issue is land availability for growing biomass for different purposes.

The paper refers to studies asserting that, even after satisfying food demand of a rapidly growing world population, enough arable land would remain available for purposes other than food production. The authors argue that the best usage of these areas is achieved by considering the land-efficiency of different crops. Studies show that many food crops are more land-efficient than non-food crops. According to the paper, they require less land to produce the same amount of e.g. fermentable sugar (commonly used in biotechnology processes) than non-food crops or so-called second generation feedstock, e.g. lignocelluloses.

“Efficiency and sustainability should be the leading criteria when selecting renewable feedstock for industrial purposes, such as the production of bioplastics,” said Hasso von Pogrell, Managing Director of European Bioplastics, embracing the paper as a welcome contribution to the discussion. “If the industry were to neglect the use of first generation feedstock at this point in time, it would do a disservice to society and the environment,” he added. “In addition to being currently more efficient, the use of food-crops for industrial purposes has the major advantage that, in times of food crisis, these crops could be reallocated to food use.”

European Bioplastics is in favor of promoting the use of second or even third generation feedstock for industrial purposes. However, as long as food crops continue in many cases 13-08 use of harvested agricultural biomassto represent the most efficient feedstock by far, discrediting their use would be misguided and a step in the wrong direction in achieving the European Commission sustainability targets.

“This often very emotional discussion needs to be steered into a more fact based direction,” continued von Pogrell. “Only two percent of the global agricultural area is actually used to grow feedstock for material production and only 0.006 percent is used in the production of bioplastics, compared to 98 percent used for food, feed and as pastures,” he concluded.

These findings echo the conclusion of a study recently published by the World Bank, according to which an increase in food prices is largely influenced by the oil price. Biofuels and, by extension, bioplastics play a negligible factor here. The study looked at food commodities such as corn, wheat, rice, soybeans and palm oil and compared commodity prices to energy prices, exchange rates, interest rates, inflation, income and a stocks-to-use ratio to determine which of these drivers had the most impact on food prices.

advanced biofuels, Agribusiness, biomass, biomaterials, food and fuel, Research

Obama Signs Legislation to Expand Hydropower

Joanna Schroeder

relaunch_dam Photo Voith HydroPresident Obama has signed into law the Hydropower Regulatory Efficiency Act and the Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act. The hydropower legislation is designed to expand hydropower production in the U.S. by improving and streamlining the licensing process.

“President Obama’s signature on hydropower legislation is terrific news for expanding renewable energy and creating jobs across the country,” said Voith Hydro President and CEO Kevin Frank in response to the signing. “There’s no better indication that hydropower is at the center of the national policy debate than the widespread and bipartisan support these bills received in both the House and Senate. We wouldn’t have gotten to this point without the outstanding leadership of Chairman Wyden (D-OR) and Ranking Member Murkowski (R-AK) in the Senate and Representatives McMorris Rodgers (R-WA) and Diana DeGette (D-CO) in the House.”

The Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act will improve the permitting process for small and conduit hydropower projects on Bureau of Reclamation facilities. The Hydropower Regulatory Efficiency Act will:

  • Increase the small hydro exemption to 10 MW (currently at 5MW);
  • Remove conduit projects under 5 MW from FERC jurisdiction and increase the conduit exemption to 40 MW for all projects;
  • Provide FERC the ability to extend preliminary permits; and
  • Require FERC to examine a 2-year licensing process for non-powered dams and closed loop pump storage.

The bill signing comes on the heels of last month’s HydroVision International, where more than 3,000 people associated with the global hydropower industry gathered in Denver, Colorado and discussed challenges and opportunities for hydropower around the world.

“The passage of this legislation is a first but very important step in getting more clean, renewable, and job-creating hydropower to homes and businesses across the U.S.,” Frank continued. “We thank President Obama for his support for America’s largest renewable resource.”

Electricity, Hydro, Renewable Energy

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFGlobal wind and solar company Mainstream Renewable Power (Mainstream) has closed a deal to sell its 7.65 megawatt Carrickeeny Wind Farm to IKEA, the world’s largest furniture retailer. Mainstream has commenced construction of the project which is located in Leitrim in the North West of Ireland and it is expected to be operational in early 2014 at which point IKEA will purchase the plant. As part of the deal Mainstream will continue operate and maintain the wind farm on behalf of IKEA for its 20-year lifespan.
  • China Sunergy, Co. a specialized solar cell and module manufacturer has signed two solar module supply contracts totaling 9.9 MW with Bester Generacion, an engineering, procurement and construction company based in Spain. The solar modules will be supplied from the company’s Turkey plant to Romania in September 2013.
  • According to CareerCast’s 2013 Jobs Rated Report on the energy sector, chemists, geoscientists, industrial engineers, and wind turbine service technicians are among some of the most promising career opportunities in the energy sector.
  • Starwood Energy Group Global and Mesa Power Group have aquired the 377 MW Stephens Ranch Wind Project located in Borden and Lynn Counties, Texas. The project spans more than 47,000 acres. The first phase of the project is expected to being construction in September 2013 and should be operational by August 2014.
Bioenergy Bytes