API Launches New Campaign

Joanna Schroeder

American Petroleum Institute (API) has launched a new campaign featuring print and TV ads taking aim at E15 and the Renewable Fuel Standard (RFS). The ethanol industry responded and Bob Dinneen, President and CEO of the Renewable Fuels Association said that Big Oil’s latest campaign is nothing more than an oil slick of misleading scare tactics.

“What does it say about an industry so desperate to protect its monopoly that it distorts reality in a feeble effort to hoodwink consumers?” questioned Dinneen. “API is intentionally confusing a debate about E15 with the RFS, an important policy that is reducing our dependence on imported oil while saving consumers money at the pump. E15 is not mandated. E15 is a cost-saving, environment-protecting, oil addiction-breaking fuel API Campaignalternative. E15 is a choice and American consumers are in the driver’s seat. Give them an option and let them decide. That’s the way competitive markets work.”

Dinneen along with Tom Buis, CEO of Growth Energy both noted that E15 is the most tested fuel in American history, but the oil industry will not tell you that. Big Oil will also not tell you that 40 million miles have been driven on it, and there have been no reports of engine trouble.

“This is nothing more than a diversion from what is really on motorist’s minds. Notice how this ‘new campaign’ comes on the heels of a gas price increase of 3.2 cents last Friday, the largest one day spike in five months, and predictions from AAA of another expected increase of .10 to .15 cents in the coming days,” said Buis.

The Department of Energy (DOE) tested over 86 vehicles on a lifecycle test, resulting in over six million miles with no negative outcomes. Even the DOE has said that API’s studies are not based on unbiased science. After failing on the legal and regulatory fronts, Buis notes that Big Oil will do “whatever it takes to keep us addicted to the failed status quo, so they can continue to line their pockets at the expense of American consumers.”

Buis concluded, “Looks like API, once again, will do anything to drive attention away from record profits and skyrocketing gas prices by using junk science in an attempt to prevent a choice and savings at the pump for American consumers.”

biofuels, E15, Ethanol, Growth Energy, RFA, RFS

Surmountable “Blend Wall”

Joanna Schroeder

Screen Shot 2013-07-15 at 11.27.47 AMFuels America recently hosted a briefing on the Hill (Washington, D.C.) to give an update on the so-called “blend wall.” Energy experts and biofuel industry representatives discussed the need to provide consumer choice at the pump. Other topics discussed during the event included: benefits of renewable fuel; penetration  of new fuels like E15  and cellulosic ethanol into the marketplace; compliance flexibility; and Renewable Identification Numbers (RINs).

Panelists for the event included:

  • Tom Buis, CEO, Growth Energy
  • Dr. Andy Randolph, Engine Technical Director, Richard Childress Racing
  • Brent Erickson, Executive Vice President, Industrial and Environmental Section Biotechnology Industry Organization (BIO)
  • Bruce Vollan, Midway Service, Inc.
  • Bob Casper, President, POET Ethanol Products

Tom Buis kicked off the briefing and noted the timing of the event happened to coincide with a spike in oil prices – now higher than $100 per barrel for domestic oil. He said that the oil companies are touting all the oil – new oil finds, oil from shale (i.e. fracking) oil drilled from oceans, and arguing that the Renewable Fuel Standard (RFS)  is not needed. “Well I think this morning’s headlines is just another good example of yes we do. Yes, we need a competitive, alternative to fossil-based fuel.”

You can listen to the Hill briefing, “Surmountable Blend Wall” here: Surmountable Blend Wall

Audio, biofuels, blends, Ethanol

Biomass-to-Liquids Plant Chooses Technology

Joanna Schroeder

A Biomass-to-Liquids (BTL) plant owned by Red Rock Biofuels has selected its reactor Velocys logotechnology. The plant, which is under construction, will use FT microchannel reactor technology developed by the Oxford Catalysts Group and marketed under the name Velocys. The BTL facility will be located in Oregon and will be designed to convert around 170,000 tons per year of forestry derived biomass into approximately 1,100 barrels per day (bpd) of liquid transportation fuels.

“The choice of Velocys FT was easy. No other FT technology offered the combination of high performance and efficiency at a scale appropriate for a BTL facility. We’re pleased to be working with the Group on this pioneering project,” said Terry Kulesa, CEO of IR1 Group, the parent company of Red Rock Biofuels.

Oxford Catalysts LogoThe Red Rock Biofuels BTL project was recently awarded a $4.1 million grant from the US Department of Defense (under the Defense Production Act Title III Advanced Drop-in Biofuel Production Project) to help to fund a detailed engineering and design study for the facility that is complete. With the aid of this grant, Red Rock Biofuels is expected to progress through detailed engineering and design over the course of nine months.

Following successful completion of the detailed design phase, IR1 Group will have an opportunity to apply for a further grant of up to $70 million to support construction of the proposed plant, and expects to do so.

Roy Lipski, CEO of Oxford Catalysts Group, added, “We are pleased to have our technology selected once again, this time for a promising opportunity in the growing area of Biomass-to-Liquids. We’re also excited by the potential for this project to access $70 million of government funding to support early adoption of a synthetic fuels plant.”

advanced biofuels, biomass

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFIn the UK, the Domestic Renewable Heat Incentive (RHI) has been announced. The RHI is the UK government’s flagship scheme to incentivize the growth of renewable heat.Tariffs of: 7.3p/kWh for Air/Water Heat Pumps, 12.2p/kWh for biomass, 18.8p/kWh for Ground-Source Heat Pumps and 19.2p/kWh for Solar Thermal, are to be paid over 7 years.  In addition, hybrids (combined heat pump – boiler systems) are eligible for RHI payments, and there will be a metering bonus. According to market analysts Delta-ee this could be a catalyst for significant market growth, with the tariff levels providing paybacks for some technologies of less than 5 years.
  • President Obama has tapped Vice Admiral Dennis V. McGinn (Ret.) as the
    Navy’s assistant secretary for energy, installations and environment. McGinn comes over from the American Council on Renewable Energy, where he was president and chief executive.
  • As part of the Academia de Profesionales Solares de las Americas (APSA) program, Solar Energy International will be providing three webinars to APSA students as well as decision makers, media, businesses, and those generally interested in the subjects of solar electricity and renewable energy in Central America and Mexico. All three webinars will be presented in Spanish and will be recorded for future viewing.
  • Non-profit farmland and sustainable agriculture training organization,”World Hunger Relief,” celebrated a brand new solar array donated by the Green Mountain Energy Sun Club. The solar panels are installed on top of a new pavilion, providing solar energy to the organization’s operations and shade to its patrons. The Sun Club is a program enabling Green Mountain Energy Company’s residential customers and employees to donate solar power to non-profits like World Hunger Relief.
Bioenergy Bytes

Unite and Ignite

Joanna Schroeder

Unite and Ignite is the theme for this year’ 26th annual American Coalition for Ethanol (ACE) Conference that will take place in Des Moines, Iowa August 26-28, 2013. ACE UniteExecutive Vice President Brian Jennings says the theme of “Unite and Ignite,” points to the critical topics and timely opportunities that will be covered.

“Our upcoming conference will be helpful to those in the industry who are looking at new ways to overcome Big Oil’s stalling tactics with respect to blending our affordable and clean fuel ethanol with their gasoline,” said Jennings. “General session topics focusing on opportunities with RINS, RFS pathways to innovation, how ethanol producers can improve their carbon reduction scores and others will help provide ethanol plant managers and board members with a good game plan on how to bolster their marketplace efforts going forward.”

Breakout sessions at the event include: Overview of State and EPA Ethanol Air Enforcement Activities; Iowa vs. Brazil: Outlook for Advanced Biofuel RINs; The Impact Employees Have on Your Plant’s Success; Roles & Relationships: Building and Maintaining Constructive Relationships Among Board Members, Management and Investors; and Building Your Board: Election Management.

“I’m looking forward to discussing these topics and more with ethanol industry leaders next month. And I can’t think of a better location to do that than Des Moines,” said Jennings.

Speakers and additional agenda detail can be found at www.ethanol.org. To register to attend the upcoming ACE Conference, click here.

ACE, biofuels, conferences, Ethanol

Oil Prices Heading Skyward

Joanna Schroeder

Oil prices are heading skyward again with U.S. prices soaring past $100 a barrel. The average cost of a gallon of gasoline rose 7.5 cents nationwide in less than one week and there is growing concern that gas prices will continue to rise due to escalating political turmoil in the Middle East.

Oil-Barrels photo- national consumer league“Here we go again. With domestic oil now more than $100 a barrel and supplies reaching unexpected lows, gas price increases are sure to follow,” said Tom Buis, CEO of Growth Energy. “To put things in perspective, in May 2009, U.S. oil (WTI) was less than $40/barrel, today it is nearly 3 times that rate. Unfortunately we have experienced this all too often. Our nation’s addiction to oil continues to wreak havoc on our economy and our consumers. Unfortunately we have seen this play out over and over again for the past four decades; it always ends the same – higher prices for consumers at the pump.”

Buis notes that there is a better alternative: the Renewable Fuel Standard (RFS). The RFS sets goals for the production of clean renewable fuels and it is working. In fact, says Buis, it is the most successful energy policy enacted in the past 40 years. Today 10 percent of the nation’s gasoline supply contains home grown renewable ethanol.

“And we can do more; however, big oil is advocating that Congress eliminate the RFS,” said Buis. “In essence, they don’t want consumers to have alternatives to our addiction to oil – they don’t want consumers to have the choice of a cleaner, less expensive alternative.”

Buis continued, “It is time to get off the hamster wheel, a century of dependency on oil has left us vulnerable and with little choice. We can’t keep all of our eggs in one basket; we can’t stay dependent on one fuel source—we must embrace renewable fuels as an alternative to oil. It’s what American consumers want and deserve, moreover, it’s what America needs to break our dangerous addiction to foreign oil. We can’t let the oil industry continue to dictate what we pay at the pump, erecting barriers in the free market and blocking renewable fuel options,” added Buis.

biofuels, Ethanol, Growth Energy, RFS

Syngenta Pledges Support for Renewable Fuels

Joanna Schroeder

During the American Ethanol 200 presented by Enogen this past Saturday held at the Newton Speedway, Syngenta announced a three-year commitment to contribute $1 to the renewable fuels industry for every acre planted with Enogen trait technology. The initiative, that began with this year’s growing season, will help support America’s Renewable Fuel Standard (RFS) and promote the benefits of renewable fuels grown in America.

enogen“Renewable fuels are an essential part of the American energy equation, benefiting consumers, farmers and American energy independence,” said David Witherspoon, Head of Renewable Fuels at Syngenta. “Ethanol, whether from corn or other biomass sources, is an energy source for today and tomorrow driving economic growth and innovation.”

Syngenta is currently focused on increasing the productivity of renewable fuels made from traditional and non-traditional feedstocks such as corn. The Enogen trait technology is a biotech output trait designed specifically for ethanol production. The corn expresses alpha amylase enzyme directly in the corn kernel and replaces liquid alpha amylase enzyme. According to Syngenta, the unique enzyme present in Enogen grain facilitates a simpler, more efficient ethanol production process helping to maximize the productivity of every gallon produced, and thus the profitability of the ethanol plant.

By helping to create savings in electricity, natural gas and water usage, Enogen corn also has the potential to help an ethanol plant reduce its carbon footprint. Syngenta says that for a 100-million gallon plant, efficiency improvements by Enogen can save annually:

  • More than 68 million gallons of water
  • Nearly 10 million KWh of electricity
  • More than 350 billion BTUs of natural gas
  • More than 100 million pounds of carbon dioxide emissions

Enogen corn represents a unique value proposition for local communities as well. Enogen corn hybrids are planted under contract with an ethanol plant licensed to use the technology. In exchange for high-quality grain and robust alpha amylase enzyme, ethanol plants pay an average 40 cent per bushel premium to local farmers for their Enogen grain, an economic boost that could mean as much as $80 to $90 an acre for some Midwestern farmers.

Agribusiness, American Ethanol, biofuels, corn, Ethanol, RFS

Biodiesel Maker Advocates for New Distro Strategies

John Davis

sequentialpacificA biodiesel maker in the Pacific Northwest is advocating for new strategies to distribute the green fuel. In a piece written for Biodiesel Magazine, Director of Sales for SeQuential-Pacific Biodiesel, Gavin Carpenter, made the case for a system that works with wholesalers and retailers alike:

Biodiesel distribution has largely followed the same model as petroleum-based fuels. Manufacturers partner with third-party distribution companies, providing wholesale product that is then bought by retailers and other end users. This model is still valuable and widely used today. It’s efficient and enables high-volume sales, but a drawback to this model is that it can limit or even remove the manufacturer from interactions with retailers…

Recognizing that wholesalers were invaluable to our ability to move product, we decided to redefine our partnerships to maintain wholesaler relationships while offering greater direct access to retailers. Instead of relying on the distributor to order fuel, SeQuential-Pacific approached retailers directly, highlighting the benefits of offering biodiesel at their stations. Interested retailers would then purchase SeQuential-Pacific product through one of our partner distributors. This simple shift opened up a host of new retail sales opportunities for SeQuential-Pacific while also enabling us to provide personalized topnotch customer service, and the ability to quickly address any concerns coming from retailers before larger issues arise.

Carpenter went on to say they have also worked to brand pumps with their B99 fuel, educating customers and taking ownership for what the retailers were selling. In addition, those same pumps would automatically switch to a B50 blend in the colder winter months.

He concluded by pointing out the dividends this strategy has paid for SeQuential-Pacific Biodiesel, producing more than 6 million gallons of fuel each year and a retail partner network of more than 30 stations, and Carpenter sees it as a model other biodiesel makers could adopt.

Biodiesel

Algae Products Producer Gets Expansion Funding

John Davis

heliaeAn Arizona-based producer of algae products, including biofuels, has secured nearly $30 million in funding that it hopes to use to expand its operation. Biofuels Journal reports Heliae raised the $28.4 million that will be used for support and expansion of its first commercial facility in Gilbert, Ariz., set to startup this September.

“With Heliae’s first commercial plant on schedule for startup in the third quarter, the company is in the final stages of proving the viability of our flexible Volaris™ production platform and demonstrating economics at a commercial scale,” said Dan Simon, president and CEO of Heliae.

“It’s an exciting time for Heliae and the sustained support of existing investors, as well as the addition of new investors, demonstrates our momentum and continued success in scale-up.”

Heliae’s flexible Volaris platform combines the best of existing algae production models, utilizing both sunlight and low-cost carbon feedstocks to optimize output.

Volaris is a mixotrophic algae production platform, a hybrid of known phototrophic and heterotrophic models, which affords decreased capital costs, reduced contamination and increased productivity and product optionality.

The plant is being built in two phases, with the first phase delivering high-value nutraceuticals made under high light conditions and the second making a personal care product in lower light conditions.

algae

European Wind Installs Double But Orders Weaken

John Davis

europewindThe amount of new offshore wind energy installed in Europe during the first half of this year has doubled compared to a year ago, but a lack of future orders is troubling wind energy advocates there. The European Wind Energy Association (EWEA) says 277 new offshore wind turbines, totalling 1,045 megawatts (MW), were connected to the grid during the first six months of 2013, but the group also points to issues with future projects:

“Offshore wind power installations were significantly higher than in the first six months of last year” said Justin Wilkes, Director of Policy at the European Wind Energy Association (EWEA). “But financing of new projects has slowed down with only one project reaching financial close so far this year. This, together with a lack of orders being placed for offshore wind turbines, substructures and components, reflects the regulatory uncertainty in key offshore markets including Germany and the UK. It highlights the significant challenges faced by the offshore wind sector.

EWEA says governments in Europe need to provide a stable regulatory framework with a binding renewable target for 2030.

Nearly 60 offshore wind farms off European coasts now have a capacity at 6,040 MW.

International, Wind