EPA Set for Action

Joanna Schroeder

During the Fuel Ethanol Workshop (FEW), Executive Vice President for the American Coalition for Ethanol (ACE) Brian Jennings sat on a panel with other ethanol industry leaders to discuss key policy issues in Washington, D.C. However, in a follow-up to the discussion, Jennings said the real action is taking place on the other end of Pennsylvania Avenue with the Environmental Protection Agency (EPA).

EPA is set to release the final 2013 RFS volumes. And this is important, said Jennings, to make sure the cellulose numbers are high enough to incent some of the production. At FEW13-ace-jenningsvirtually the same time, the EPA will propose the 2014 RFS volumes, or numbers.

“What’s really important here, is that in the past EPA has reduced cellulose but have assumed that other advanced biofuels, sugarcane ethanol from Brazil, domestic advanced, biodiesel, can make up the difference when they reduce cellulose.” Next year the cellulose number is so high, 1.75 billion, that they’re going to have to reduce it such that there probably isn’t sufficient advanced biofuels to make up the difference, explained Jennings.

“So we could be looking for the very first time in 2014 with changes across the board of the RFS from EPA not Congress.” Jennings added that ACE is trying to get their arms around how they want to tackle this with EPA.

Jennings also discussed the farm bill and the Energy and Commence Committee Renewable Fuel Standard (RFA) white papers. He believes hearings may take place in July but is not sure if ACE or any other association will be invited to participate in the hearings. But, he stressed, ACE will be active in the debate.

Listen to my interview with Brian here: EPA Set for Action

Visit the 2013 FEW Photo Album.

ACE, Audio, Ethanol, FEW, RFS

Motorcycles & E15

Joanna Schroeder

The American Motorcycle Association (AMA) is hosting an event for motorcycle riders to come to Washington, D.C. and lobby on Capitol Hill. They want to stop E15 from being sold until testing has been done on motorcycles to see if harm or damage will occur.

sturgis Photo RussBrown.comIn response, the Renewable Fuels Association (RFA) held a press call to discuss motorcycles and E15. On the call were Robert White director of market development for RFA and Harley Davidson owner, as well as engine experts Bobby Likis and Bryan O’Neill.

All the participants stressed during the call that since the Environmental Protection Agency (EPA) approved E15, it has never been approved for motorcycles – only E10 has been approved for motorcycles. The message back to AMA and all motorcycle riders, said White, “…is to not use the fuel. In fact, it would be illegal, and will remain illegal no matter what any testing would confirm.”

The big question – Why E15? “I think we need to look not further then the event sponsor, the American Fuel and Petrochemical Manufacturers, known as our nation’s oil refiners,” said White. He also noted that the RFA has taken concerns of AMA and others seriously when it comes to E15.

In addition to the call, RFA also released a fact sheet specifically for motorcycle owners answering common questions about E15 (85 percent gasoline/15 percent ethanol) and motorcycle engines. The document entitled “E15 and the Motorcycle Industry” makes it clear that E15 is illegal to put into a motorcycle engine, but E10 is approved for use.

Listen to the full press call here: Motorcycles & E15

Audio, biofuels, E15, Ethanol, RFA

New Mexico Students Learn with Solar

Joanna Schroeder

Thousands of students in Rio Rancho, New Mexico will now be learning with solar power. Conergy is currently installing two solar power plants on the campuses of V. Sue Cleveland and Rio Rancho High Schools. The solar Conergy reference project_Boron High School California USAinstallations will total 1.2 megawatts (MW). The public schools will be using the power produced by the sun, via a 20-year Power Purchase Agreement (PPA) with Washington Gas Energy Systems.

“We are very proud that our two high schools will be supplied with renewable power and that we will be making a valuable contribution to sustainability in our community,” said Al Sena, responsible for building management at the Rio Rancho public schools. “This will allow our students to experience the benefits of clean power generation, first hand. With the solar installations, we cover about 80% of our total annual power requirements while cutting our electricity costs at the same time – without major upfront investment.”

The power plants consists of more than 8,200 solar modules installed on 4.7 kilometers of Conergy SolarLinea mounting systems. They will produce nearly 4.3 million kilowatt hours of energy each year. This is the same amount of energy as needed by 43,000 laptops running 8 hours a day for one year.

Anthony Fotopoulos, Managing Director of Conergy USA added. “In many regions of the USA, grid parity has been achieved for end consumers, and solar power is already considerably cheaper today than power from the grid. Local consumption via power purchase agreements is the future of the American electricity market.

“With this electricity market model, end consumers benefit from considerable electricity cost savings from the green power – without substantial upfront costs. In the sunshine state of California, for instance, around 70% of all solar plants on private homes are already financed by third parties today; in the case of commercial power plants, the figure is over 40% – and the trend is upwards,” Fotopoulos concluded.

Electricity, Energy, Renewable Energy, Solar

Needed Now: Farm Bill with Energy Funding

Joanna Schroeder

For two years the Senate has passed its version of a farm bill. Last year the House did not and later this week is set to debate its version of the bill. During this process, the current farm bill was extended but ag, energy and other groups are at a full court press to get a bill passed before the legislators break for summer vacation.

I sat down with Tom Buis, CEO of Growth Energy recently who is a Washington insider and FEW13-growthenergy-buishas been working on behalf of the agricultural industry and now the biofuels industry for many years to learn more about the current farm bill, or lack thereof.

Buis explained that the 2008 Farm Bill was the first ever with an energy title, all designed to help investment into next generation biofuels. This year, the Senate extended the program and funded it and those are two critical programs said Buis. If a new bill isn’t passed, the extension will expire on September 30, 2013 and with it all the energy programs.

He continued, what the House does is only authorize the programs but don’t put in any money in the bill. “It’s a good press release but it doesn’t mean anything. And the battle will probably end up like that if and when it gets through the House they won’t have any funding for the programs and restrictions on whether or not USDA can fund development under the REAP program, flex pumps in rural communities. They’ll probably have a prohibition which the Senate does not and will have it work in out in conference.”

Tom along with his members have been extremely active in defending ethanol on the Hill and will continue to do so. Realizing that they need more boots on the ground, several years ago Growth Energy launched its “Growth Force” where anyone from around the world can sign up to support biofuels. Now the association is taking it one more step, and individuals from around the country can become members of Growth Energy.

During our sit down, Buis also discussed several other current issues including market access and the ongoing debate over the Renewable Fuel Standard (RFS). Listen to my interview with Tom here: Needed Now: Farm Bill with Energy Funding

Visit the 2013 FEW Photo Album.

Agribusiness, Audio, biofuels, Ethanol, FEW, Growth Energy

Following the Future of Biodiesel

John Davis

FutureFuel1An analysis of where the biodiesel industry is headed is optimistic. Of course, the report comes from a company intimately involved in the green fuel.

This article posted on Stockhouse.com from biodiesel producer FutureFuel Corp. looks at where some of the best prospects for biodiesel are – in particular how biodiesel demand is projected to grow, the biodiesel supply appears limited, and the robust economics and public support biodiesel enjoys:

The Renewable Fuel Standard (“RFS”) … helped the biodiesel industry reach production levels of nearly 1.1 billion gallons per year over the past two years, exceeding the programs requirements.

Between 2008 and 2022, the Energy Independence and Security Act of 2007 increased the volume of renewable fuel required to be blended into transportation fuel from 9 billion gallons to 36 billion gallons. These metrics help ensure that demand for biodiesel fuel will continue to rise over the coming years and create significant opportunities for biodiesel producers and affiliate companies to generate strong top-line revenues moving forward…

Biodiesel demand may be on the rise, but the supply side was hit by the RIN crisis that impacted the market…

[T]he Energy Information Administration (“EIA”) [says] it’s clear that biodiesel production fell sharply during the second half of 2012, compared to 2011, but has been recovering so far in 2013 to record levels…

The third key factor for investors to consider beyond supply and demand is public support and cost economics, since the industry’s growth does demand on government subsidies. Fortunately, it has become clear that the biodiesel industry offers a number of enormous economic benefits, environmental benefits, and public benefits worth considering. These benefits … suggest that support for the industry remains robust.

Interesting read. Check it out!

Biodiesel

Volvo Debuts Noiseless Electric Buses

Joanna Schroeder

The launch of an ultramodern bus service in Gothenburg, Sweden will pick up passengers indoors, without noise or emissions via electric buses. The initiative is sponsored by the Volvo Group, Swedish Energy Agency, the City of Gothenburg, Västtrafik, Lindholment Science Park and Johanneberg Science Park. The project has been coined, ElectriCity.

“This represents an entirely new mode of travel and will allow for the public-transport system to contribute to a more pleasant urban environment,” said Olof Persson, president ElectriCityand CEO of Volvo. “A silent and emissions-free public-transport system will enable the inclusion of locations in the city that are currently off limits. It is immensely satisfying to be able to launch this in our hometown, in cooperation with Region Västra Götaland and the City of Gothenburg.”

The use of electric power not only places Gothenburg on the map in terms of sustainable and innovative solutions for public transport; the new bus service will also open up new possibilities in city and urban planning. Commencing in 2015, the electric buses are to run between Johanneberg Science Park adjacent to Chalmers and Lindholmen Science Park in Hisingen.

Anneli Hulthén, Chairman of the Municipal Board added, “The electric bus service entails a new mode of public-transport system usage, which is highly positive for Gothenburg. It will highlight Gothenburg as a progressive city in terms of city planning. This is also in line with our prioritized objective of having Gothenburg reduce its climate impact to become a climate-neutral city, and increasing sustainable travel.”

In addition to the electric buses, the cooperation also includes the creation and trial runs of new bus-stop solutions, traffic-routing systems, safety concepts, energy supply and business models.

Alternative energy, Climate Change, Electric Vehicles, Environment, International

Turning Plant Matter into Fuel

Joanna Schroeder

Charles Wyman, a University of California Riverside professor in the Chemical and Environmental Engineering Department, recently edited a book, “Aqueous Pretreatment of Aqueous Biomass BookPlant Biomass for Biological and Chemical Conversion to Fuels,” that provides in-depth information on aqueous processing of cellulosic biomass into fuel.

The just-published book focuses on aqueous pretreatment of cellulosic biomass to promote sugar release for biological, catalytic, or thermochemical conversion into fuels and chemicals. Introductory chapters provide the rationale for converting biomass to fuels; its importance to national security, balance of trade, and the environment; and insights into biological and catalytic processing to fuels. Also included are in-depth information on the chemistry and biology of cellulosic biomass, leading pretreatments to facilitate its biological and chemical conversion to sugars, and methods important to assess the effectiveness of biomass conversion technologies.

In recent decades, interest in converting cellulosic biomass to fuels has closely tracked the price of petroleum: support jumps when petroleum prices are high and wanes when prices drop.

“That creates a big challenge,” Wyman said. “The volatility of oil prices and associated enthusiasm for alternatives results in a very unstable environment in which to build a business.”

Yet, cellulosic biomass conversion has unique and powerful benefits. It has the potential to substantially reduce greenhouse gas emissions and imported petroleum dependence and is widely available and inexpensive. For example, cellulosic biomass costing $60 per dry ton has about the same cost per energy content as petroleum at about $20 per barrel.Read More

advanced biofuels, biomass, Cellulosic

DoD Biofuels Program Weathers Senate Storm

John Davis

us-capitol-fiscal-cliff-voteSomebody in Washington must be looking out for biofuels. On the heels of the full U.S. Senate passing the the Farm Bill and its provisions friendly to biofuels (including $38 million for the Biomass Crop Assistance Program, about $160 million for the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance program, and possibly up to $88 million for the Rural Energy for American Program), the Senate Armed Services Committee has stopped attempts that would have curtailed the military’s biofuels program.

The move gained the praise of the Advanced Biofuels Association’s president Michael McAdams:

“The Advanced Biofuels Association applauds the Senate Armed Services Committee for their leadership in supporting the Department of Defense initiatives in advanced biofuels. The Senate continues to recognize the mission value of investments in biofuels that meet multiple national security objectives, and contribute to growing jobs in American agriculture and technology.”

Of course, both of these bills are still to pass both the full House and Senate and the inevitable joint committees to hash out the differences. Both of these might have been wins for biofuels, but the war’s not over. Stay tuned.

biofuels, farm bill, Government

ICM’s 2.0 Tech to Add More Value to Ethanol Plants

John Davis

Kurt Dieker head shotRecently, we told you about ICM, Inc.’s Generation 1.5 Integrated Fiber to Cellulosic Ethanol Technology that will help produce cellulosic ethanol at existing grain ethanol plants. Now the company has announced its Generation 2.0 technology that will allow ethanol plants to also produce cellulosic ethanol from the stover from those same corn fields where the grain comes from.

“ICM sees that as a co-location facility, next to Generation 1 facilities,” explained Kurt Dieker, ICM’s Director of Product Development during an interview with Joanna. He said they’ll see a differentiated feedstock going in, so the process won’t be that much different than their 1.5 technology, with corn stover and other cellulosic crops being turned into fuel. And the 1.5 technology would serve as a cheaper proving ground before stepping up to the more expensive 2.0 technology. And since the 2.0 can be located in existing ethanol plants, farmers can have one stop to bring their corn and stover to make the two generations of ethanol. “Our mission is to add value to sustainable agriculture through renewable fuels and chemicals. Not only can the plants make more money, but also the farmer make more money per acre.”

Another benefit of ICM’s Generation 2.0 technology is using the existing infrastructure, such as power and water, which can make up to 30 percent of the costs of building a plant, and using a first generation plant’s steam, making the second generation plant cheaper.

Kurt said they’ll be doing the first integrated run of the Generation 2.0 technology in the third quarter of this year, and the market will drive the future.

“The bigger thing for us is to continue to add value for our customers, continue to invest into the industry as a whole, and to give overall producers options for the future and a positive outlook.”

Listen to Joanna’s interview with Kurt here: Kurt Dieker, ICM

Audio, Cellulosic, Ethanol, News, RINS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFGenscape is sponsoring the first New York Energy Week, a cross-sector energy event series launched to stimulate industry investment and innovative energy solutions. The event will take place in New York City June 24-28, 2013. Genscape energy experts will be sharing their insights during a number of headline events throughout the week including the Oil and Gas breakfast panel and the Energy Data Jam at Google headquarters.
  • Green EnviroTech Holdings Corp. has appointed Kim Johnson as VP
    of Marketing. Johnson has more than 30 years of experience in the energy industry. Prior to joining the company, she was the President of eBarton LLC.
  • NuMat Technologies, a materials technology company that captured top honors at cleantech business competitions across the country, has announced it closed a $2 million seed round, bringing the nanotech startup’s total funding to $2.4 million. The GOOSE Society of Texas, an angel network, led the round, which included participation from Owl Investment Group.
  • Renewable Energy Systems Americas Inc. has been selected as the balance of plant constructor for phase two of the Lower Snake River wind farm. The 267 megawatt wind farm is located near Dayton, Washington, northeast of Walla Walla, and will utilize 116 Siemens Energy wind turbines with a capacity of 2.3 megawatts.
  • Real Goods Solar, Inc. has announced that Jirka Rysavy resigned from his position as a director and chairman of the board of the company. Rysavy has served as the chairman of the company’s board of directors since its inception. Until recently, Gaiam was the largest shareholder of the company.
Bioenergy Bytes