Malaysia Starts Biodiesel Mandate, Looks for More

John Davis

malaysiaflag1Building on the success of a biodiesel mandate in the central part of the nation, Malaysia is starting a 5 percent biodiesel mandate in the southern part as well. And this article from Biodiesel Magazine says the Southeast Asian country could be looking to expand that requirement even more.

[Malaysian Ministry of Plantation Industries and Commodities] says implementation of the biodiesel program in the south will create an additional annual demand of 37,270 tons, displacing about 11 million more gallons of petroleum diesel per year. Since July 1, 415 fueling stations across south Malaysia have been selling biodiesel blends. Once the B5 program is implemented nationwide in July 2014, the total target palm biodiesel consumption will reach 500,000 tons (150 million gallons) per year.

MPIC said the biodiesel program has contributed to a 44 percent increase in palm biodiesel production, from 173,220 tons (52 million gallons) in 2011 to 249,213 tons (75 million gallons) in 2012, while helping stabilize the price of crude palm oil through increased biodiesel demand.

But the government of Malaysia has already decided to move beyond 5 percent blends, according to MPIC. “To achieve this, the Ministry of Plantation Industries and Commodities through [the] Malaysian Palm Oil Board is formulating action plans, which include undertaking studies on the suitability of B10 (or at a higher blending ratio) as required by the Original Equipment Manufacturers (OEM), especially on engine warranty,” MPIC stated.

The mandate in the central part of Malaysia is already helping drive usage of about 34 million gallons of palm biodiesel annually.

Biodiesel, International

Quad County: Versatile Renewable Energy

Joanna Schroeder

quadcounty13-King“I’m listening to the presentation that Delayne [Johnson] gave you and looking around at the faces of the people I know that have stepped up for years – you put your capital on the line, you put your ideas on the line, and you put your hard work on the line,” began Congressman Steve King during his remarks at the celebration of the groundbreaking of a fast-forward innovative technology – Adding Cellulosic Ethanol “ACE” project. The technology adopted and developed by Quad County Corn Processors in Galva, Iowa will create advanced biofuels from the “corn slurry” created during the ethanol production process.

King noted that if you took a picture from a plane above the plant, you would see the most versatile of renewable energy locations. He also noted that years ago he remembered reading a study that said a plant could only get around 2.7 gallons of ethanol per bushel of corn but today- not even 3 gallons per bushel is the ceiling.

“That’s a phenomenal thing to do,” said King.

The Congressman also noted that here in Iowa, we know more about producing renewable energy than any other state in the world and we have the knowledge base here.

Listen to Congressman Steve King’s remarks here: Versatile Renewable Energy

I had an opportunity to ask Congressman King if he felt the Renewable Fuel Standard (RFS) was at risk and he said “absolutely.” But he said it is important for the industry to keep moving forward, and the “ACE” project demonstrates the innovation of the industry.

Listen to my interview on the RFS with Congressman Steve King here: Congressman King on the RFS

Visit the Quad County Corn Processors “ACE” Groundbreaking photo album here.

More audio and video on AgNewsWire.com.

advanced biofuels, Audio, corn, Ethanol, RFS, Video

Quad County Breaks Ground on “ACE” Project

Joanna Schroeder

quadcounty13-johnsonQuad County Corn Processors officially broke ground today in Galva, Iowa on its Adding Cellulosic Ethanol “ACE” project. Dozens of local community members joined ethanol industry reps and local politicians to celebrate the milestone that ethanol plant General Manager Delayne Johnson said was four years in the making in the R&D lab.

Delayne explained during his remarks, “With the addition of this new cellulosic process, we will stretch the production capacity of each and every corn kernel that passes through our plant. We will increase our ethanol yields by 6 percent, increase our corn oil extraction three times over, while also creating a higher protein livestock feed. This is value-added agriculture at its best.”

quadcounty13-groundbreakingAs a result of the new process, Johnson noted, the DDGs will be much more similar to a corn gluten meal. It will increase the protein content by about 40 percent.

“The greatest benefactors will be the Galva community, our shareholders, the ethanol industry, and the consumer,” added Johnson. “Investing $8.5 million in our new process will add several jobs here at the plant, allow us to produce more ethanol from the same amount of corn, help us contribute to the nation’s supply of cellulosic ethanol, and will continue to lower prices at the pump for consumers.”

You can listen to Delayne Johnson’s comments here: Delayne Johnson's Opening Remarks

You can view Sandy O’Brien’s reading of Senator Tom Harkin’s comments here or listen to her comments here: Senator Tom Harkin Remarks

You can listen to Delayne’s reading of Iowa Ag Secretary Bill Northey’s comments here: Iowa Ag Secy Bill Northey Remarks

Visit the Quad County Corn Processors “ACE” Groundbreaking photo album here.

advanced biofuels, Audio, Cellulosic, corn, Distillers Grains, Ethanol, Video

ACE to Congress: Big Oil Manipulating RIN Market

Joanna Schroeder

ace logoIn response to the release of the fifth white paper on the Renewable Fuel Standard (RFS) from the House Energy and Commerce Committee, the Executive Vice President of the American Coalition for Ethanol (ACE) Brian Jennings submitted comments showing how the RFS is working and Big Oil companies are desperate to repeal it so they can control the fuel market.

Jennings said in the comments:

With respect to a question from the Committee asking who is responsible for the rise in RIN prices: “The question isn’t what is responsible for the rise in RIN prices, rather, the questions are who is responsible for the rise in RIN prices and why. RIN prices have risen this year because oil companies don’t want to comply with the law. While oil companies were reluctantly comfortable with 10 percent ethanol in all gasoline, they prefer to control the remaining 90 percent of the gasoline market by preventing the sale of E15 and other mid-and-high-level blends of ethanol called for under the RFS.”

How the oil industry is manipulating the RIN market: “That oil companies are willing to pay $1 or more for a RIN, just to avoid buying ethanol at 70 cents per gallon less than gasoline and offering consumers safe, tested, and affordable blends such as E15 and E85, should tell Congress everything it needs to know about the RFS: it is needed now, more than ever. The lack of transparency in the RIN trading marketplace leaves open the possibility that unscrupulous traders or even oil companies could create skewed transactions for the purpose of manipulating the RIN market for financial gain or to make a political point. If Congress reduces or repeals the RFS, it rewards oil companies’ bad behavior, ensures they will control 90 percent or more of the gasoline market, and forces consumers to pay more for dirty fuel by restricting their access to more affordable and cleaner blends such as E15 and E85.”

Why the RFS was enacted and how EPA has implemented it: “The RFS wasn’t enacted by Congress to make life comfortable for oil companies or vertically-integrated food conglomerates who managed to operate quite comfortably before the RFS and continue to generate handsome profits today. The RFS was enacted to dramatically improve the way we produce and use transportation fuel, to reduce our dangerous dependence on foreign oil, to create jobs, to reduce gas prices and greenhouse gases, and to spark innovation in new technologies. In its wisdom, Congress provided EPA with appropriate authority and flexibility to implement the RFS, and EPA has judiciously and exercised that authority.”

Click here to read ACE’s full comments.

ACE, biofuels, Ethanol, RFS, RINS

Researchers Look to Remove Algae for Biofuel

John Davis

Blersch-Algae1One of the scourges of lakes during summertime is an algae bloom. While some algae serves as an important part of the food chain, other varieties can become too plentiful and kill off large amounts of wild fish. Researchers from the University of Buffalo are looking at ways to remove that slimy, green mess and turn it into useful materials, such as biofuels.

Funded by a $30,000 Rochester Institute of Technology grant, [David] Blersch, an environmental engineer at the University at Buffalo, and his students built a system that pumps water ashore down two, 40-foot-long flumes.

The water is recycled into the lake but it leaves behind microscopic cells that form miniature algae blooms. Blersch vacuums the algae and bottles samples to study. He is creating a database that will help scientists, government, industry and others gauge the algae’s potential uses.

“One element of the project is pollution recovery. By using the algae beds to remove excess nutrients from the lake, we can improve water quality,” says Blersch, PhD, research assistant professor in UB’s School of Engineering and Applied Sciences. “The other aspect is studying its properties; is it viable to turn algae into biofuels, fertilizer or other commercial products?”

The technology is being looked at to help clean up and possibly collect algae to make into biofuels in other important watershed, such as the Chesapeake Bay and the Everglades. In addition, companies, such as Exxon Mobil, which has invested $100 million since 2009 in algae biofuels, are helping move the process along.

algae, biofuels

Pipelines to Iowa Could Shift Fuel Choice At Pump

Joanna Schroeder

According to a new study commissioned by the Iowa Renewable Fuels Association (IRFA), a pending shift in the fuels carried in pipeline to Iowa will likely increase the cost of non-ethanol blended gasoline forcing retailers to choose between offering a relatively high priced traditional E0 (100 percent gasoline) and a lower-cost E15 (a blend of 15 percent ethanol and 85 percent gasoline). The study finds the net wholesale price difference Iowa Fuel Pricesbetween the two options could range from 34 cents per gallon to 57 cents per gallon. The study was conducted by Decision Innovation Solutions of Urbandale.

“With the price of 87-octane E0 expected to spike, retailers will need to think hard about what fuel will attract more customers,” said IRFA Executive Director Monte Shaw. “Each retailer will need to decide for themselves and the right answer may not be the same for all, but we’re confident that E15 will look very attractive once the marketplace implications of the oil refiners’ pipeline changes are better understood.”

Starting in mid-September, regular 87-octane E0 will no longer be shipped through the pipeline systems that serve Iowa. Oil refiners will replace this product with 84-suboctane gasoline, which cannot legally be sold to the public. Boosting the fuel back to the minimum required 87-octane will necessitate blending with ethanol or with 91-octane premium gasoline. The study found that, “prices for 84 clear and 91 clear will be impacted by the decision to offer a mixed 87 clear product.”

“According to the study, historically at the wholesale level, regular 87-octane E0 has been priced at about 6 cents more than 89-octane E10, a fuel containing 10 percent ethanol,” said  Shaw. “With these pipeline changes, we could see the E10 discount grow to 30 to 52 cents per gallon, while E15 could cost 34 to 57 cents per gallon less than E0.”Read More

biofuels, E15, Ethanol, Iowa RFA

UConn Establishes New Fraunhofer Center

Joanna Schroeder

The University of Connecticut (UConn), has established a new Fraunhofer Center for Energy Innovation (CEI). The role of the center is to develop advanced technologies related to energy storage, fuel cells, in-stream hydro, power management and distribution through contact research.

Dr George Rosenfeld,jpg“The sustainable, efficient and environmentally friendly use of energy is one of the major global challenges of the future,” said Fraunhofer President Professor Reimund Neugebauer during a dedicated ceremony. “Consequently, we combine our advanced energy competencies in the USA with an excellent research partner, the University of Connecticut. The Fraunhofer Center for Energy Innovation expands Fraunhofer USA’s portfolio of energy related technologies and will closely cooperate with the Fraunhofer Center for Sustainable Energy Systems (CSE) in Boston.”

Fraunhofer and UConn will cooperate in several areas. In order to develop highly efficient and cost-effective energy conversion and storage systems, the research will concentrate on modern functional materials, such as metals, ceramics, micro-and nanostructures, as components for fuel cells and electrolyzers. On the UConn campus, components and subsystems will be validated and integrated into flexible microgrid architectures. New methods of membrane and catalyst preparation will be developed, particularly for energy-efficient biofuel production.

“The Fraunhofer Center for Energy Innovation (CEI) combines the expertise of the founding partners for the development and commercialization of new materials and technologies to improve future energy production and storage owing to an efficient use of resources,” added Dr. Prabhakar Singh, the director of the Center. His aim is to accelerate the global supply of affordable and sustainable energy technologies.

Alternative energy, Energy, Energy Storage

ABFA Gives RFS Testimony

Joanna Schroeder

The Advanced Biofuels Association (ABFA) gave testimony last week regarding the Renewable Fuel Standard (RFS). One of the issues ethanol detractors are using in their attempt to modify or even repeal the RFS is the so-called blend wall.

hearing-mcadamsABFA Executive Director, Michael McAdams said in response to this issue, “Calling for the full repeal of the RFS over a short term issue impacting less than 1% of all the fuels we use doesn’t make a lot of sense as a public policy issue.”

One area of concern for the advanced fuels industry, noted McAdams is the uncertainty of the annual obligations, or Renewable Volume Obligations (RVO)s for 2013 and 2014. He echoed the wishes of others to have the numbers released as soon as possible. McAdams also called for the Environmental Protection Agency (EPA) to provide an extra year of clarity with the 2015 RVO. This would help rapidly defuse much of the economic pressure the industry is facing.

Listen to Michael McAdams testimony here: Michael McAdams RFS Testimony

advanced biofuels, Audio, RFS

Offers Made to Buy Biodiesel Maker Syntroleum

John Davis

DynamicSyntroleumSomeone is interested in the biodiesel making efforts of Syntroleum. The Tulsa-based company is in a joint venture with food giant Tyson Foods to make biodiesel from animal fats, and according to the Tulsa World, that has got the attention of some unnamed third parties looking to buy the company, assets or patents:

A news release from Tulsa-based Syntroleum indicated that the unsolicited queries prompted the company earlier this month to announce the hiring of Piper Jaffray & Co. to scout “strategic alternatives.” Syntroleum said the current and long-term prospects of gas-to-liquids production and renewable fuels – both company objectives – were helpful to seeking those alternatives.

“Given the favorable commercial environment, the company believes that now is an appropriate time to broadly review its strategic alternatives with respect to its renewable and GTL intellectual property and its ownership and licensing interest in Dynamic Fuels.”

Syntroleum’s venture with Tyson includes Dynamic Fuels LLC, a refinery in Geismar, La., that began operating several years ago but is now on hold. No re-start for the plant has been given.

Biodiesel

Growth Energy Submits More RFS Comments

Cindy Zimmerman

As the Renewable Fuels Association did, Growth Energy also submitted answers today in response to the request from the House Energy and Commerce Committee for stakeholder input regarding implementation issues and the Renewable Fuel Standard (RFS).

hearing-buisThe answers echoed CEO’s Tom Buis’ testimony on the RFS during the stakeholder hearing this week.“The RFS was enacted nearly six years ago – it is time for the petroleum industry to move to higher biofuel blends and comply with the law,” said Buis. “The easiest way to comply is to simply blend E15 and higher ethanol blends.”

Buis also noted that moving to higher blends of ethanol would address RIN costs as well, stating: “The easiest way to bring down RIN prices and reduce compliance costs is to increase market access for higher blends of biofuels. If the major oil companies stop erecting artificial hurdles to E15 and midlevel ethanol blends, there would be ample RINs available to meet obligations under the RFS.” Tom Buis RFS testimony

Audio, Ethanol, Government, Growth Energy