RIN Amounts Indicate Positive Trend for Biodiesel

John Davis

Nicholas PaulsonEnvironmental Protection Agency (EPA) figures for Renewable Identification Numbers (RINs) shows in 2.5 billion 2012 RINs across the biodiesel (D4), advanced (D5), and renewable (D6) categories. Of this total, just over 2 billion D6 RINs were available. This analysis from Nick Paulson with the University of Illinois says it could indicate a trend that is good news for the biodiesel industry:

Current levels of available 2012 RIN stocks have not changed significantly over the past few months. However, 2013 RIN generation across the D4, D5, and D6 categories implies that these stock levels could be significantly reduced in 2013. This will provide lower RIN carryover into 2014 when mandate levels continue to rise and physical blending constraints tighten further due to the E10 blend wall. This will force increased blending of biodiesel (see here for more info), which does not face the blend wall, or increased use of higher ethanol blend rates such as E15 or E85 (see here for more info).

The analysis goes on to point out that an expected 12.3 billion D6 RINs will be generated in 2013, falling 1.5 billion gallons short of the renewable component of the RFS mandate for 2013 (13.8 billion gallons). And that’s the point the article makes in that biodiesel has an easier job making up those RIN shortages.

Biodiesel, RINS

Edeniq Squeezing Every Penny Out of Ethanol Plants

John Davis

FEW13-edeniq-thomeAfter the ethanol industry went through such a tight year last year, it’s no wonder refineries are looking to squeeze every penny out of profitability out of every gallon that comes out of the plant. During the recent Fuel Ethanol Workshop in St. Louis, Mo., Joanna had a chance to talk with Brian Thome, the President and CEO of Edeniq, a company that specializes in doing just that.

“It was founded with the idea of how do you take corn plants and migrate them over to a world class cellulosic operation. And what we’ve done is transition that into how do you take a corn ethanol plant and make it better,” he said. Edeniq has developed an end-to-end cellulosic process, pulling individual unit operations out of that process and finding applications in the real world to help customers with commercial uses. “Our goal is to simply incrementally make a plant better and better over time and then add cellulosic, [so] a corn ethanol plant has a more diverse feedstock and output with better economics.”

Adding in Edeniq technology adds bit by bit to a plant’s value with adding all the product lines. In addition, the other co-products, such as sugars, can add to those value streams. Brian also said that it could help either idled or closed plants get back in operation.

“Is there an opportunity? And the real key question becomes, ‘Has that ethanol plant been idled for a specific reason relative to the technology that someone could come in and take advantage of new product offerings, new additions on the technology side? Or has it been idled by other macroeconomic factors?” He added every plant is different with positive and negative attributes now and in the future.

Brain said Edeniq’s bolt-on technology could give some plants immediate returns, while others will need more time. But, as an ethanol man with more than 15 years in the industry, he certainly believes in the long-term of the green fuel and the potential it holds.

“There’s a 24 billion gallon worldwide market, and ethanol is not going away. Whether a person wants to argue if it should be 13.5 billion gallons or 30 billion gallons, the key for me is that it is still a very robust, very large product that needs to find its way into the market.”

Listen to more of Joanna’s interview with Brian here: Brian Thome, President and CEO of Edeniq

Visit the 2013 FEW Photo Album.

Audio, Ethanol, FEW, News

Overcoming the Summer Gas Price Rise Blues

John Davis

andrewhollandAs we have now officially landed in the summer season (of course, the real summer travel season really started Memorial Day weekend), the question that seems to come up every year remains “Why do gas prices go up during the summer?” Andrew Holland, Senior Fellow for Energy and Climate with the American Security Project, a non-profit, non-partisan public policy and research organization that looks at a range of national security issues, including energy, in Washington, D.C., says it’s because so much of our fuel is still made from crude oil, a commodity that is subject to the fluctuations of the market and many other factors.

“The easy answer is: it’s complicated,” Andrew says. While a large portion of the gas price is due to crude oil price affected by the predictions (as opposed to actual supply and demand), this time of year, the change in price has a lot to do with switchovers at the refineries from winter types of fuels to summer types that can cause some short-term shortages. Plus, the increase in demands due to more summer driving for vacations and the seasonal uptick in economic activity drive prices higher. But he believes alternative fuels, while not solving all these issues, could help a bit with those summer gas price spikes.

“It’s using less oil, as a society and as individuals,” Andrew says. “People are buying new cars that are much more fuel-efficient than previous cars, and that’s driving down consumer demand. If everybody demands less oil, that means the oil is going to be a bit cheaper.”

He points to alternative fuels, such as ethanol, and alternatives to travel, such as carpooling or public transit as being more ways to reduce that consumer demand. Andrew also talks about the “social costs of carbon” and external factors, which adds anywhere from 10 cents to $3-4 per gallon of transportation fuel. But he also says that higher taxes on gas and crude oil could help spur the growth of technologies that would ultimately end up lowering the amount of fuel used and actually save people money in the long run.

“It incentivizes us to have alternatives. It makes sure there’s an incentive for producers to produce more fuel-efficient cars,” Andrew says. And he says it doesn’t just have to mean more money out of people’s pockets. It can reduce taxes elsewhere. “If we increase the price of gasoline a dollar a gallon, but reduce everybody’s payroll taxes by a similar amount, then it’s a tax shift… and most of us who drive less would pay much less.”

Listen to more of Joanna’s interview with Andrew here: Andrew Holland, Senior Fellow, American Security Project

Audio, biofuels

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFPure Energies Group and its U.S. subsidiary One Block Off the Grid have announced a new solar power educational partnership with trusted contractor, Mike Holmes, best known for his television show, Holmes on Homes, on HGTV. Holmes will feature residential solar power education on his website Make it Right.
  • JinkoSolar supplied 25.8 MW of solar PV modules to the first private solar park in India located in Mandrup Village, Solapur District, Maharashtra State, India.
  • The California Solar Initiative (CSI) Thermal program has qualified Skyline Innovations as a Program Performance Data provider (PPD) certifying that Skyline meets all the requirements for monitoring system accuracy and reliability, as well as technical expertise and capability.
  • Alterra Power Corp and Energy Development Corporation (EDC) have finalized their joint venture for the development of Alterra’s Mariposa geothermal project in Chile and the Crucero, Loriscota and Tutupaca Norte concessions in Peru.
  • Locus Energy has announced the beta launch of its solar forecasting service that provides a short-term (0-6 hours) forecast tool capable of predicting solar irradiance and power across an entire install base or geographic region. The service provides cloud motion by applying computer vision algorithms to real-time satellite imagery.
Bioenergy Bytes

India Solar Project Advances

Joanna Schroeder

CNPV Solar Power SA and Cheenu Group of Coimbatore, Tamil Nadu, India have announced the advancement of the first large scale captive consumption Solar utility project in India as part of their 10MWp strategic agreement.

Screen Shot 2013-06-23 at 7.49.03 PMCheenu Group began the project due to ability to expand its business because of lack of available power and rising electricity acquisition costs. The company first established a 2 megawatt solar power plant using CNPV’s Optimal Premium Series Solar PV modules at their Coimbatore facility to supplement the power shortage concerns.

Mr. Prabhu Devarajan, chief executive of Cheenu Group said, “In the event that the local infrastructure cannot support our power needs, the effects to our business can be catastrophic. We also wanted to be the forerunner in fulfilling the Solar Power Obligation imposed by the state electricity utility and therefore decided to set up our own captive consumption solar power plant.”

“Our module selection was focused on quality and performance, and after compiling and comparing the technical features of several manufacturers concluded that CNPV are able to demonstrate the most significant benefits in terms of high quality, energy yield, and long term performance,” continued Devarajan. “We are extremely happy with the technical guidance and support extended by CNPV in the smooth execution of the module supply and look forward to developing the next tranche of the 10MWp with CNPV, during second half of 2013.”

There are additional expansion plans for the provision of EPC services and solar module distribution for off grid use in Southern India.

Alternative energy, Electricity, Energy, International, Solar

Industry Congratulates NY on 2% Bioheat Mandate

John Davis

nbb-logoThe biodiesel industry and environmental groups expressed their pleasure with the New York state legislature’s passage of a 2 percent biodiesel in all heating oil (Bioheat) mandate. Leading those congratulations was the National Biodiesel Board:

“America’s advanced biofuel and Bioheat are a great fit for New York’s heating oil market” said Shelby Neal, NBB Director of State Governmental Affairs. “Creating a standard that includes at least 2 percent biodiesel will replace about 30 million gallons of petroleum annually with a cleaner burning, renewable fuel.”

“New York State’s crop farmers are growing more and more soybeans every year,” said Julia Robbins, Executive Director, New York Corn and Soybean Association. “This policy will help provide New York farmers with a new market for the state’s soybean oil.”

New York City, the largest municipal consumer of heating oil in the country, has already taken advantage of biodiesel’s benefits by instituting a citywide 2 percent biodiesel requirement in October of 2012.

“Extensive testing has clearly shown that biodiesel blended with traditional heating oil is safe, seamless, and actually improves fuel efficiency through cleaning and preserving equipment,” said John Maniscalco, CEO of the New York Oil Heating Association. “This law extends these tremendous benefits to all New Yorkers and will provide the state with the cleanest, most sustainable heating oil in the country.”

Other Bioheat backers pointed out that the statewide mandate will provide a uniform standard throughout the state, while increasing overall economic activity.

The legislation says all heating oil sold in the City of New York, Nassau, Suffolk, Westchester, and Rockland counties will need to contain at least 2 percent biodiesel by October 1, 2014, with the rest of the state adopting the standard by July 1, 2015. The bill now awaits the governor’s signature.

Biodiesel, NBB

Enerkem Raises C$50 Million

Joanna Schroeder

Waste-to-biofuels company, Enerkem, has raised C$50 million in financing bringing the total equity investment raised by the company in 2013 to C$87 million. As part of this financing, institutional fund Investissement Québec joins existing investors Waste Enerkem logo copyManagement of Canada, Rho Ventures, Braemar Energy Ventures, The Westly Group, Cycle Capital, Fonds de solidarité FTQ and Fondaction, who each increased their investment in Enerkem with this new equity financing round.

Investissement Québec, as a mandatary for the Government of Québec, is one of the largest institutional investors in Canada. Through structural investments, it supports the growth of innovative companies with a global competitive edge and the potential to accelerate the transition to a green manufacturing economy.

“This strategic investment by Investissement Québec will help us leverage and strengthen our capacity to build and assemble the various modules of our facilities through the network of local and high quality shops we are currently working with,” said Vincent Chornet, president and chief executive officer of Enerkem. “As we are finalizing the construction of the Enerkem Alberta Biofuels facility in Edmonton and developing our next facilities, we take this new corporate equity investment as a vote of confidence in Enerkem’s growth strategy.”

According to Quebec Premier Pauline Marois, “climate change, the dwindling supply of hydrocarbons and other environmental challenges have made it necessary to rethink our very lifestyles, not to mention the way we transport people and goods. By redefining our economic approach and adapting it to 21st-century realities, we can make Quebec one of the greenest and most prosperous regions of the planet. Enerkem is living proof that biofuels can be a wonderful opportunity for economic growth. Enerkem’s projects not only create jobs but also reduce the carbon footprint left by our transport systems, and they can clearly have a beneficial effect on our balance of trade.”

advanced biofuels, Waste-to-Energy

For Summer Fun, Rent an Alt Vehicle

Joanna Schroeder

This summer, Disneyland is promoting energy efficiency to those coming to their famous theme park. MPG Car Rental gives California visitors a chance to try out some alternative energy cars including the Prius, the Volkswagen TDi and the fully electric Tesla Model S, winner of the 2013 Motor Trend Car of the Year award.

The tie-in to green cars and Disneyland? The park has expanded its Cars Land and completed a replica or Radiator Springs, the fictional town from Disney’s hit 2006 film Cars. Visitors will be able to interact with the cars via a racing simulator that uses the technology of Epcot’s Test Track.

Cars 2 imageFor eco-conscious parents and individuals, the hysteria over cars provides an excellent opportunity to teach their children the importance of hybrid technology, electric technology and biofuels. In fact, Cars 2, the 2011 sequel to the original film of which I am a fan, features a plot in which unscrupulous big oil investors attempt to thwart the use of biofuels (both ethanol and biodiesel) in order to secure future profits. While much of this may fly over the heads of the youngest children, older kids are likely to be intrigued by the message.

So parents, whether you are visiting Southern California or somewhere else in the good ol U.S. of A. bring the movie’s message to the road by renting an alternative fueled vehicle this summer.

 

Alternative Vehicles, Biodiesel, biofuels, Ethanol, Opinion

Ygrene Fund Florida’s First PACE Projects

Joanna Schroeder

Ygrene Energy Funds Florida has announced funding for the first Property Assessed Clean Energy (PACE) projects in the state. The Ygrene program provides residential and commercial property owners with access to low-cost, low-risk capital to implement building upgrades, including hurricane protection, energy efficiency and renewable energy projects.

The PACE-financed projects are non-recourse financing repaid via annual property assessments over a 20-year period. “This is a breakthrough event for the state of Florida and the nation—one that demonstrates the path toward economic revitalization and reduced energy consumption,” said Stacey Lawson, CEO of Ygrene.”Florida governments and property owners will see immediate and lasting results through the PACE program, and Ygrene is the first administrator in the state to demonstrate the viability of this model.”

Ygrene Energy Fund logoYgrene has multiple programs under development across Florida. The company’s first Southeast Florida program, Clean Energy Green Corridor, is a partnership with the cities of Miami, Coral Gables, Cutler Bay, Miami Shores, Palmetto Bay, Pinecrest and South Miami. For the Green Corridor program, Ygrene has already trained and certified more than 200 local contractors to administer upgrades and provide job opportunities throughout the region.

“With all the promises of PACE over the past few years, it’s exciting to see the first projects come to life,” added Mayor Tomas Regalado. “The PACE program has the potential to address three critical needs in our state: hurricane protection, job creation and rising energy costs. The doors are finally opening on this huge opportunity, and I commend Ygrene and the cities involved in this endeavor for their commitment and vision to enact meaningful change in our communities.”

energy efficiency, Renewable Energy

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFECOtality, Inc.and NovaCharge, LLC, a leader in the deployment of EV charging infrastructure, announced that NovaCharge has become an authorized dealer of Blink commercial chargers.
  • Hydrogenics Corporation, a developer and manufacturer of hydrogen generation and hydrogen-based power modules, announced that the largest Power to Gas facility in the world went “live” with the first direct injection of hydrogen into a gas pipeline using Hydrogenics’ technology.
  • ET Solar Group Corp has completed three photovoltaic plants with a combined capacity of 28 MW for Tinmar-Ind S.A. one of Romania’s largest electricity suppliers and traders. These three projects combined with 22MW completed for Tinmar in April bring ET Solar’s cumulative total to 50MW in Romania in 2013. These three plants are located in Targu Carbunesti, Gorjcounty, and Simnicu de Sus, Dolj county.
  • China Sunergy Co., a specialized solar cell and module manufacturer, announced that it has begun shipping solar modules from its plant in Istanbul, Turkey, and will deliver a total of approximately 6.4MW from mid-June to August 2013 to a well-known French customer.
  • SunPower Corp has appointed Catherine A. Lesjak, a 27-year veteran of HP as a new, independent, member of SunPower’s board of directors.
Bioenergy Bytes