Genscape Issues Cautionary Alert to Corn Buyers

Joanna Schroeder

Genscape has recreated the United States Department of Agriculture’s (USDA) corn yield projections for the 2013 season and is issuing a cautionary alert to corn buyers, traders and other market participants. GenscapeAugust 2013 Yield Forecast Accuracy tapped into its LandViewer model that uses a methodological tripod of high resolution satellite imagery, extensive on-the-ground surveillance, and proprietary algorithms to pinpoint corn yields at the farmland parcel, county, state, and national levels to provide a framework for its corn yield projections.

As of July 11th, the USDA projects average U.S. corn yields of 156.5 bushes per acre (bpa) and 14 billion bushels of corn supply for the 2013 season. However, Genscape’s LandViewer model indicates that if USDA national predictions are to be achieved, it would have to correlate to significantly higher average yield production rates in key corn producing states, such as Iowa, Minnesota, Ohio and Indiana.

“We feel that the USDA’s crop forecast would require far more production from key corn producing states than what our historical 5-year tracking data show,” said Dr. Steffen Mueller, senior director of Genscape’s LandViewer group. “We are issuing a detailed cautionary alert to our clients at this time – and continuing our independent ground verification.”

Genscape’s updated 2013 county-by-county corn yield forecast will be announced on August, 6, 2013. County-level state data will be available to clients via report, and Dr. Mueller will lead in-depth explanations and custom consultations.

biofuels, corn

Caterpillar Finances Waste-to-Energy Project

Joanna Schroeder

Blue Sphere Corp., a company in the Cleantech sector as a waste-to-energy and clean energy project integrator, has announced that its Charlotte, North Carolina project, a 5.2 MW organics-to-energy anaerobic digester, has received a signed commitment letter from Blue Sphere logoCaterpillar Financial Services Corporation, the financial arm of Caterpillar Inc., to provide $17.785 million in debt financing. Blue Sphere has accepted the commitment letter and has paid a non-refundable commitment fee of $177,852 to Cat Financial. This commitment is 100 percent of the debt financing required for the project.

Blue Sphere, along with its partner, Biogas Nord, AG of Germany, is acting as integrator of the Charlotte project, through its Joint Venture company, Bino Sphere. Biogas Nord has designed and built over 400 waste-to-energy plants in Europe, Africa and the Middle East. With the debt financing now committed, Blue Sphere is in the process of completing all closing conditions, including investment tax credit monetization, feedstock supply and permits. Blue Sphere expects to break ground on construction in the 3rd quarter of 2013 with an expected start date of 3rd quarter 2014. Once the project is in operations, Blue Biogas Nord logoSphere will continue as project manager and retain a 37.5 percent ownership position in the project.

Shlomi Palas, CEO of Blue Sphere Corp. sais, “This commitment letter from Cat Financial means that 100% of the debt project financing is now committed to our 5.2 MW organics-to-energy project. Our next step is to prepare and enter into final definitive agreements with Cat Financial to start the disbursement of cash and commence construction. The terms of the commitment letter give us until August 14, 2013 to close. Commencement of construction will, in turn, enable Blue Sphere to begin earning revenue pursuant to the terms of our joint venture with Biogas Nord.”

“Once the project is commissioned, which should take up to 12 months from the start of construction, Blue Sphere will start earning operating and management revenue from the sale of contracted electricity into the local grid owned by Duke Energy, Inc. In parallel, Blue Sphere continues to make progress on the implementation of our second project, a 3.2 MW organics to energy anaerobic digester project in Rhode Island. We expect the second project could begin construction by the end of 2013,” concluded Palas.

Alternative energy, Waste-to-Energy

RFS Hill Briefing Sparks Hot Biofuels Debate

Joanna Schroeder

Advanced Biofuels Association LogoThe Advanced Biofuels Association held an event, “A Policy Briefing on the Future of the Renewable Fuel Standard,” (#RFSFuture) in Washington, D.C. to debate the merits of the RFS and discuss the future of the RFS. The event comes on the heels of the House Energy and Commerce Subcommittee on Energy and Power’s plans for a two-day hearing next week to discuss a series of RFS white papers that review various aspects of the legislation and the feedback received.

The RFS briefing featured opening remarks from Wayne Simmons, President & CEO/Board Director for Sundrop Fuels along with:

  •  A keynote speech from Heather Zichal, Deputy Assistant to the President for Energy and Climate Change, Office of Energy and Climate Change Policy, Domestic Policy Council, Executive Office of the President.
  • Remarks from Representative Alan Nunnelle, (R-MS) who serves on the House Appropriations Committee and is the Vice Chairman of Energy and Water Development, and Related Agencies.

Rep. Nunnelle noted that he has been intimately involved in working on the RFS white papers. He also said that American energy provides American jobs and its was imperative the legislation, such as the RFS that he feels needs work, must support this.

The Hill logoIn addition, there was a policy panel moderated by Ben Geman, a reporter with The Hill, and featured John Kasbaum, Senior Vice President, Commercial Sector, KiOR, Inc.; John E. Reese, Downstream Policy & Advocacy Manager, NA, Shell Oil Products U.S.; Andrew Rojeski Vice President, General Manager Renewable Energy, Dynamic Fuels LLC; Chris Ryan President and CEO, Gevo; and Heather White Executive Director, Environmental Working Group.

Zichal began her remarks with a brief discussion of President Obama’s commitment to reducing America’s greenhouse gases and emissions, a part of his Climate Plan. She noted that biofuels, along with the Renewable Fuel Standard is an important part of this plan and discussed the lead the military has been taken in investing in and testing biofuels.

While many speakers support the concept of an RFS, several noted, including Reese and White, said the RFS wasn’t working and that corn ethanol needed to be phased out and more support was needed to bring advanced biofuels to market.

advanced biofuels, Ethanol, RFS

NFU President Takes Part in RFS Fly-In

John Davis

NFUlogoThe president of the National Farmers Union (NFU) was part of a Washington, D.C. fly-in to talk about the Renewable Fuels Standard (RFS). Roger Johnson talked blend wall, E15 and progress on the cellulosic ethanol front with Rep. Lee Terry, R-Neb., and Rep. Bruce Braley, D-Iowa, and others as part Fuels America‘s series of educational briefings.

“The RFS must be maintained to provide for a stable policy environment for the development of the next generation of biofuels,” said Johnson.

“American farmers and rural communities will continue to benefit from the expansion of the industry with new markets for farmers and the creation of good-paying jobs,” said Johnson.

The NFU points out that the RFS is ensuring choices at the pump while delivering economic, national security and environmental benefits.

RFS

Groups Applaud EPA’s McCarthy Confirmation

John Davis

The U.S. Senate has approved Gina McCarthy as the next administrator of the Environmental Protection Agency (EPA) on a 59-40 vote. Renewable energy and environmental groups, as well as commercial companies, welcomed her confirmation.

The National Biodiesel Board said it was thrilled by the vote:

nbb-logo“Gina McCarthy is a strong, dynamic leader who knows the intersection of environment and energy issues as well as anyone in the nation. She understands that we must move beyond fossil fuels to meet our objectives on these issues and has demonstrated a practical, balanced approach for doing so, including strong support for the Renewable Fuel Standard (RFS).

The American Coalition for Ethanol (ACE) says her confirmation shows a commitment to ethanol and other renewable fuels:

ACElogo“McCarthy understands the Renewable Fuel Standard to be the linchpin to our continued success reducing petroleum use and greenhouse gas emissions. She’s also familiar with how E15 passed the tests EPA administered before approving it as a safe option for 2001 and later model year passenger vehicles.”

The Renewable Fuels Association (RFA) echoes other groups’ sentiments in pointing out it is already familiar with McCarthy and her views:

RFA-logo-13“In meeting after meeting over the years, we have always found Gina McCarthy to be approachable and open to dialogue. There is no question that she is a thoughtful, solution-oriented professional who will handle the tough job ahead of her with grace.”

Growth Energy‘s Tom Buis sees McCarthy as good choice who will take a fair approach to the RFS:

buis2“President Obama has chosen an excellent and well-qualified individual to lead the EPA and I look forward to working with Administrator McCarthy to continue to advance the growth and development of sustainable biofuels.

Adam Monroe, Americas Regional President for Novozymes, says his company is looking forward to working with McCarthy:

novozymes“The New Administrator understands the importance of stable policy, like the Renewable Fuel Standard. Across the country, smart, stable policy is creating innovation, investment in our communities and jobs for our workers. It’s also protecting cities and towns where our families live.”

Finally, the Sierra Club added its voice to the chorus of support:

Sierraclub“After dedicating her 25-year career to protecting our air and water, Gina McCarthy has a proven record of protecting American families and getting things done. It’s no wonder she received bipartisan support from the Senate today. We look forward to working with her continue the EPA’s vital work of protecting American families and holding polluters accountable.”

ACE, Biodiesel, Ethanol, Growth Energy, NBB, RFA

RSC Hearing One-Sided

Joanna Schroeder

Dont Mess with RFSThe Republican Study Committee’s Energy Task Force held an informational hearing discussing the impact of the Renewable Fuel Standard (RFS) on July 17, 2013. Speakers included representatives from the American Fuel and Petrochemical Manufacturers, National Council of Chain Restaurants, the Turkey Federation, and the National Marine Manufacturers Association. The event happened to occur two days after the American Petroleum Institute (API) launched an aggressive TV and print campaign to reduce the use of ethanol, the roll-out of E15 and end the RFS.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen said of the hearing, “The Republican Study Committee event is nothing more than a one-sided pep rally for Big Oil and Big Food.”

Dinneen continued, “The RSC should be embarrassed by the lack of balance. Not a single representative from the ethanol industry nor a single national security, energy, environment, or auto expert who supports the Renewable Fuel Standard is participating in this event. The RSC is doing a disservice to the Republican Senators and Representatives who strongly support the RFS. Why is the RSC not giving these Republicans a voice?”

“The fact is the RFS was first enacted by a Republican House, Senate, and President. Does the RSC really believe Republicans who support the RFS, past and present, do not have the best interests of this great nation in mind when they move to make the U.S. more energy independent, more nationally and economically secure?” Dinneen concluded.

biofuels, E15, Ethanol, RFA, RFS

The Real Reason Government’s Plug EV’s

Joanna Schroeder

According to a new study by researchers at the Indiana University Bloomington School of Public and Environmental Affairs and the University of Kansas, contrary to common belief, many country’s promote the manufacture and sale of electric vehicles (EVs) for reasons of economic development, notably job creation, not because of their environmental benefits. 4798The study looked at policies related to EVs in California, China, the European Union (EU), France, Germany and the United States, political jurisdictions with significant automotive industries and markets for EVs.

“Billions of dollars are being invested despite doubts that some express about the viability of electricity as a propulsion system,” said John D. Graham, SPEA dean and co-author of the study. “The objective of many of these national and sub-national governments is to establish a significant position — or even dominance — in the global marketplace for these emerging, innovative new technologies.”

Examining each jurisdiction’s use of risk-management policies (e.g., those designed to reduce environmental and security risks due to oil dependence) or industrial policies (e.g., designed to boost fortunes of a specific technology or sector and increase market competitiveness) indicated the entire lifecycle of making and using EVs is viewed by policy makers mainly as an economic development opportunity. Specific findings include:

  • China: No carbon price has been established in China, where electricity is generated by high-carbon sources and fuel prices are relatively low; thus, its EV policies are geared toward establishing a competitive position in an emerging global EV industry.
  • Germany: The least committed to EVs of the jurisdictions studied, Germany is nonetheless engaging in an industrial policy of hedging to protect the market share and viability of its premium car industry should electric propulsion gain a foothold in the worldwide premium car market.
  • The European Union: The only entity studied that acts as a supranational regulatory state, the EU is also the only one where pure risk management related to EVs occurs. The EU appears to have a technology-neutral approach and has made some investments in research and development support for industry innovation.
  • California and France: California is the largest market for motor vehicles in North America. In addition, its considerable pollution problems, created largely from the automobiles in the 1960s and ’70s and particularly acute relative to other U.S. locations, make it an ideal market for EVs. Thus, it is motivated to promote EVs by a substantial blend of industrial policy and risk management — the same approach taken by France. Both California and France have made significant advancements in risk management policies, having the strongest voices among their peers for mitigating the effects of economic and industrial development that lead to urban air pollution, congestion and climate change.Read More
Alternative Vehicles, Electric Vehicles, Environment, Research

Biodiesel Board Welcomes RI Bioheat Mandate

John Davis

BioheatlogoFolks in Rhode Island will be staying warm in future winters with some help from Bioheat, a blend of biodiesel and heating oil. The governor of that state signed legislation to mandate a 2 percent blend requirement starting in July of 2014 with plans to expand that to 5 percent in 2017. The news was welcomed by the National Biodiesel Board and the state’s heating oil trade association:

“I commend the Oil Heat Institute of Rhode Island for not sitting back and waiting for change to come to them,” said Paul Nazzaro, who spearheads the Bioheat education program for the National Biodiesel Board. “They recognized Bioheat as the future of their industry that can reverse the contraction of their market, and they took control of their own destiny.”

Julie Gill, executive director and CEO of the Oil Heat Institute of Rhode Island, said getting the legislation passed took persistence and commitment.

“We’re proud that the Bioheat requirement has passed, because it will benefit not only our industry, but heating oil consumers in our state,” Gill said. “Oil heat systems run more effectively with a biodiesel blend, and Bioheat will help heating oil be more environmentally competitive. We will continue to work towards making our product the cleanest fuel available.”

Other states in that region have passed similar measures, but Rhode Island will be the first to implement a statewide Bioheat mandate.

Biodiesel, NBB

AAA Sets Record Straight on E15

Joanna Schroeder

This week the American Petroleum Institute (API) kicked off an new anti-ethanol and anti-biofuels TV and print campaign and in a commercial being aired in South Dakota, criticized the increased use of ethanol and E15 as a motor fuel. The 30-second commercials mention Triple A (AAA) and the organization has come out publicly and said the ads misrepresent their position on E15 and is calling for API to have the ads taken down.

“This commercial is the latest in a series of communications on social media and elsewhere which portray AAA as being “anti-ethanol.” This is not the case,” according to AAA’s statement. “AAA South Dakota remains a strong supporter of image002-2the development and use of alternative fuels such as ethanol. The auto club believes ethanol fuels provide motorists with a choice at the pump that promotes U.S. energy independence, supports American and South Dakotan jobs and can save the consumer money.”

The Senior Vice President for the American Coalition for Ethanol, Ron Lamberty, today is thanking Triple A and locally based ethanol supporters for speaking out against the American Petroleum Institute’s (API) new anti E15 campaign.

“We are pleased with the reactions to these inaccurate ads. I think what this shows is the amount of support here in the heartland of the nation for ethanol and higher ethanol blends like E15,” said Lamberty.

“We salute and thank our members and supporters of ethanol who called, emailed and texted their local AAA office to complain about the ads. To have an office state their support for ethanol within hours of the ad airing in this market indicates how much people want their choice at the pump and should indicate why Big Oil is running such a dishonest campaign. Let’s face it, people know the truth and they are starting to see through Big Oil’s lies on E15 and the Renewable Fuel Standard,” Lamberty concluded.

ACE, biofuels, E15, Ethanol, RFS

Iowa Grants Help Expand Biodiesel

Joanna Schroeder

Since 2006, 158 new biodiesel retail pumps and 48 terminal locations have opened around the state. The growth has been helped along by state grants managed through the Iowa Renewable Fuels Infrastructure Board. Iowa has several progressive biodiesel policies IowaBiodieselBoardLogoon the books, including this investment in the infrastructure needed for statewide distribution of cleaner burning biofuels.

Iowa produces the most biodiesel of any state, yet surveys show 47 percent of diesel vehicle owners here do not know where to find it,” said Randy Olson, executive director of the Iowa Biodiesel Board (IBB). “This additional infrastructure helps biodiesel continue to become fully integrated into Iowa’s fuel supply.”

The Iowa Renewable Fuels Infrastructure Program assists retail operators of motor fuel dispensing sites or fueling stations in the conversion of their equipment to allow for the expanded use of renewable fuels in Iowa. The 27 biodiesel projects in Fiscal Year 2013, which just ended, received funding totaling about $1.2 million.

Some examples of funded projects include Sapp Bros. Travel Center in Council Bluffs, STAR Energy (a division of Growmark) in Fort Dodge, and a Kum-and-Go in Ankeny, the hometown of IBB and the Iowa Soybean Association. Diamond Oil Co. used a $100,000 grant to open a heated terminal facility in Des Moines, which helps streamline the distribution process by offering pre-blended biodiesel to smaller distributors year-round.

“This program is good for Iowa because it empowers more consumers to use their own state’s products rather than importing our energy,” said Harold J. Hommes, program administrator with the Iowa Department of Agriculture & Land Stewardship. “We don’t have refineries or fossil fuels here, so money leaves the state to pay for those energy products. But if we produce those in a renewable manner here, we’re helping Iowa farmers and fuel producers, and then those dollars are multiplied throughout Iowa.”

The grants require matching funds. Petroleum distributors must commit to providing biodiesel blends for a set number years (usually five). Agricultural cooperatives are also eligible for the grants. This increases on-farm availability, a priority of IBB.

advanced biofuels, Biodiesel