New Mandate to Boost Biodiesel in Canada

John Davis

canada flag1The Canadian Renewable Fuels Association (CRFA) welcomed the proposal of a new renewable diesel mandate in Ontario. The measure would be based on fuel percentage and carbon intensity and replaces the current biodiesel tax exemption for all diesel sold in the province. It’s also expected to boost biodiesel production in Ontario.

“These consultations are a step in the right direction for Ontario,” said Kevin Norton, Chief Executive Officer of BIOX Corporation. “Provincial mandates provide clarity for diesel refiners and importers. As the largest biodiesel producer in Canada, the implementation of a renewable diesel mandate in Ontario would provide us with market certainty right in our backyard and support the significant capital investment we have made at our Hamilton facility.”

“A mandate would help ensure Ontarians realize not only the strong economic benefits, but also the environmental advantages that come from burning a cleaner more sustainable fuel in the most populous and traffic congested region of Canada,” [said Todd Moser, Vice President and General Manager at Rothsay].

“Today’s announcement is welcome news for our renewable fuels industry and the farmers we work so closely with,” said CRFA President W. Scott Thurlow. “Domestic biofuels production delivers proven environmental and economic benefits for local communities – including cleaner air and more consumer choice at the fuel pump. We look forward to participating in these important consultations and encourage political parties of all stripes to support this initiative without delay.”

While Canada has a 2 percent biodiesel mandate, the CRFA has complained that in practice it hasn’t required as much biodiesel blending as it would seem. This new proposal is seen as putting more certainty behind the government’s commitment to biodiesel.

Biodiesel, International

REG Plans to Buy Soy Energy 30 MGPY Biodiesel Plant

John Davis

reg-logoThe nation’s largest biodiesel maker is going to get a bit bigger. Ames, Iowa-based Renewable Energy Group (REG) announced it is buying Mason City, Iowa’s Soy Energy and its 30-million gallon per year capacity biodiesel plant for $11 million in cash and the issuance of a $5.6 million promissory note to Soy Energy. This company news release says the plant was originally built in 2006, bought by Soy Energy and upgraded in 2010 to use more raw materials, such as animal fats and used cooking oil, but was shuttered last year.

“Renewable Energy Group’s offer provides the best value for Soy Energy unit holders while helping unit holders achieve their mission for promoting economic development in the area,” said Jeff Oestmann, Soy Energy’s President and CEO. “In addition, REG’s procurement know-how and proven business model of using lower cost raw materials makes them a reliable operator for this plant.”

REG plans to repair then restart the refinery and further upgrade the plant in the future. The acquisition would increase REG’s biodiesel production capacity to 257 million gallons annually. REG currently owns seven active biodiesel refineries in five states, including nearby plants in Newton and Ralston and Albert Lea, Minn.

“We are committed to the people of Mason City, Midwestern farmers and livestock producers and those who supply the fats, oils and greases we will buy,” said Daniel J. Oh, REG president and CEO.

The re-opening of the plant will put 30 full-time wage earners back on the payrolls.

Biodiesel, REG

Ethanol Report on Efficiency Study

Cindy Zimmerman

Ethanol Report PodcastA new study indicates that ethanol production is continuing to reduce its energy and environmental footprint.

The study, entitled “2012 Corn Ethanol: Emerging Plant Energy and Environmental Technologies”, found that recent innovations in corn ethanol production have resulted in increased yield per bushel even as less energy is required for production.

In this edition of “The Ethanol Report”, study co-author Steffen Mueller, PhD with the University of Illinois at Chicago Energy Resources Center, talks about the findings and Renewable Fuels Association President and CEO Bob Dinneen comments on the significance.

Listen to or download the Ethanol Report here: Ethanol Report on Efficiency Study 3:39

Subscribe to “The Ethanol Report” with this link.

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Air Force Gets Virent Bio-based Jet Fuel for Testing

John Davis

virentWisconsin-based Virent has delivered the first 100 gallons of its bio-based jet fuel to the U.S. Air Force Research Laboratory (AFRL) for testing. This company news release says it will be validated against the standards required for qualification and approval of new aviation turbine fuels established by the American Society for Testing and Materials (ASTM):

Dr. Tim Edwards of the AFRL’s Fuels and Energy Branch said, “AFRL is looking forward to working with Virent and the FAA to evaluate the performance of this fuel. This larger sample will help generate the performance data needed to advance the technology toward engine and flight testing.”

The jet fuel was produced at a new Virent demonstration plant built to produce drop-in jet and diesel fuels from 100% renewable plant sugars. The plant was constructed at the company’s facility in Madison, Wisconsin under a $1.5 Million award received in 2011 from the Federal Aviation Administration and U.S. Department of Transportation, through the Volpe National Transportation Systems Center, and commissioned in January…

Lourdes Maurice, Executive Director of the FAA’s Office of Environment and Energy said, “We are excited that Virent is able to effectively utilize FAA funding to deliver these gallons for testing. The fuel will be used with our partners in the industry and government to progress testing of novel alternative jet fuels that can help meet FAA’s environment and energy goals under the Next Generation Air Transportation System.”

Virent officials say if the testing is successful, they next step will be to get the refinery up to commercial capacity.

advanced biofuels, biofuels, Government

Oil $$, No Ethanol. Coincidence? I Think Not.

Joanna Schroeder

Last week the biofuel industry took a hit when Florida voted to repeal its Renewable Fuel Standard, HB4001, that required fuel retailers to blend ethanol into their gasoline. The charge against ethanol was led by Florida Senator Greg Evers, who represents Escambia County, which happens to be the largest receiver of BP oil spill funds in the state. In fact, the same week HB4001 was passed, the county was one of the first to receive approximately $56 million to go toward restoration projects. Apparently, oil “balls” are still washing up on shore.

Barrels of Oil Photo-Kay Nietfeld:CorbisEscambia County receives its BP funds….ethanol gets squashed.

Coincidence?

I think not.

Let’s take a closer look at the correlation between state Renewable Fuel Standards and ethanol. In states that have a robust oil industry, Texas, Alaska, California, North Dakota, and New Mexico, combined with the state that has several oil refineries, Louisiana, with the exception of California, none of these states have Renewable Fuel Standards. While California has tried to move away from oil with its low carbon fuel standard, it was ruled unconstitutional. Although the legislation is temporarily moving forward, the oil industry is hoping to get another win when the roll-out is halted.

One could argue that when looking at states with the most ethanol production: Iowa, Minnesota, Illinois, Nebraska, and Indiana, you’d think there would be state renewable fuel standards in place. But this is not the case. With the exception of Minnesota, which has a biodiesel mandate, these states have tax incentives for production, but no mandates for use at the pump. They don’t seem to need them. Residents of these states appear to take advantage of choice at the pump (and support home grown fuels).

If there is catastrophic oil crisis, Americans in Midwestern states would be driving long after those in states heavily reliant on straight gas at the pump. In fact, Iowa produces enough ethanol and biodiesel each year to fuel 100 percent of its vehicles plus still have fuel to export.

Common sense should tell us to go the way of the Midwest, but when it comes to logic this country seems fresh out and no one wants to pay the money during a recession for a clue.Read More

Alternative energy, biofuels, Ethanol, Opinion

Brennan to Head Farm Foundation’s Development

John Davis

brennan1Our friends at Farm Foundation, a group that has work in agriculture, food systems and rural communities, including biodiesel and ethanol production, has tapped Tim Brennan as their new Director of Development.

“We are excited to welcome Tim to the Foundation staff,” says Jay Armstrong of Armstrong Farms, Muscotah, KS, Chairman of the Foundation’s Board of Directors.

“This is a dynamic time for the Foundation as demand for our high-quality, objective program work continues to grow. Tim’s expertise in fundraising will be crucial to the Foundation’s ability to expand the depth and reach of that programming.”

“The Foundation is uniquely positioned to help public and private decision makers understand evolving issues and demands that are shaping the future of the industry,” says Neil Conklin, President of Farm Foundation, NFP. “Tim will formalize a fundraising strategy and bring valuable experience to strengthen and broaden relationships in the Foundation’s networks.”

Brennan has 20 years in fundraising, most of that in higher education. He was the Associate Director of Alumni Relations for the University of Chicago’s Graduate School of Business, now the Booth School of Business and the Director of Alumni Relations and Marketing for Northwestern University’s School of Law, as well as the University of Chicago’s Executive Director of the Chicago Society and Director of Development at the Law School and the Senior Director of Alumni and Constituent Relations at the University.

Farm Foundation

Attacks on RFS, Blend Wall Bogus

Joanna Schroeder

The message being delivered to Washington, D.C. today is that Big Oil attacks on the Renewable Fuel Standard (RFS), so-called blend wall and E15 are bogus. Today representatives from the Iowa Renewable Fuels Association (IRFA), the American Coalition for Ethanol (ACE) and the Auto channel held a briefing in the Capitol Visitors Center to discuss these issues as well as highlight how E15 and the RFS are key parts of an “all of the above” American energy solution.

Blend Wall Briefing-1“Exposing the so-called blend wall for what it is—a Big Oil bluff—highlights how important E15 and the RFS are to achieving a more secure energy future for America,” said IRFA Executive Director Monte Shaw to the crowd. “Big Oil uses scare tactics like the so-called blend wall and bogus E15 studies to protect the petroleum monopoly at the expense of the American consumer. Meanwhile, renewable fuels benefit the American consumer by lowering gas prices, creating American jobs, and decreasing our dependence on foreign oil.”

Fuel retailer and owner of Midway Service in Sioux Falls, S.D. Bruce Vollan said to the ethanol advocates, “We have been offering blends of ethanol from zero to E85 at our station for nearly five years, and year after year, my customers buy an average of 20 to 25 percent ethanol. Despite what the so-called ‘experts’ say, we haven’t had to pay a single repair bill during that time. I think we’ve shown that – given the choice – customers are smart enough to know what works in their engines, and – given the choice – they will buy more ethanol. Being able to offer my customers all of the different fuels they want is just one of the reasons I’ve been an independent retailer for nearly ten years. I couldn’t sell these blends if my station was branded.”

When discussing Big Oil’s efforts to smear E15, ACE Senior Vice President Ron Lamberty explained, “Ethanol’s opponents have dramatically misrepresented the findings of studies about E15. We want to make sure that Congress is looking at the actual science and not just Big Oil’s distorted representations of that science.”

Auto Channel Executive Vice President Marc Rauch added, “For 180 years, the world’s top scientists and automotive engineers have known that ethanol is the best and safest engine fuel. It’s time to put this great domestic resource to serious use, and that means embracing E15 today. I’d much rather have my fuel money go to American farmers than to foreign terrorists.”

ACE, Alternative energy, biofuels, Ethanol, Iowa RFA

Argus India Ethanol Assessment Launched

Joanna Schroeder

Global energy and commodity price reporting agency Argus has added a new tool to its arsenal: Argus India ethanol assessment. The company says the new product is designed to meet the growing demand for price reference and transparency in the market and was created in response to India’s mandate for increased ethanol Argus Biofuels Reportblending in gasoline. The daily assessment is specifically for anhydrous ethanol, delivered to India. Indian demand for ethanol is expected to rise to as much as 2.2bn litres next year (38,000 b/d) to fulfill the country’s mandatory E5 blending. India plans to move to E20 blending by 2018.

According to Argus, the new assessment will provide a useful reference for the growing number of traders, brokers, planners, analysts, risk managers and strategic decision makers that follow this market. Argus spot market price assessments are based on a robust methodology, and are expected to be used by governments, regulators, oil companies with ethanol and biofuel operations, chemical companies, commodity firms, beverage companies and exchanges.

“We are delighted to introduce this assessment within a month of launching ethanol fob Pakistan (hydrous), ethanol cfr Philippines and B-grade cfr northeast Asia assessments. Argus now provides comprehensive coverage of Asian ethanol prices,” said Argus Media chairman and chief executive Adrian Binks.

The new price assessment is published daily in Argus Biofuels, a global report covering various biofuel prices including assessments for Renewable Energy Directive (RED) compliant ethanol.

biofuels, Ethanol, International

Rise in Diesel Vehicles Good News for Biodiesel

John Davis

DieselTechForumchart1Registrations for clean diesel cars are up a whopping 24.3 percent in the U.S. from 2010 through 2012, outpacing total car registrations during that same period of just 2.7 percent. The numbers from the Diesel Technology Forum should be good news for biodiesel producers, since those clean diesel cars can burn the green fuel.

“This new data of total national vehicle registrations coincides with what we’ve been seeing in the monthly auto sales – clean diesel and hybrid cars are showing consistent and impressive growth patterns in the U.S.,” said Allen Schaeffer, the Executive Director of the Diesel Technology Forum.

“This consistent growth in clean diesel registrations in the last three years is particularly noteworthy since it has occurred during an economic recession, the availability of an extremely large number of fuel efficient vehicles, which was topped off by some of the highest diesel fuel prices in U.S. history. Even in the face of these significant challenges, diesel buyers are seeing the big picture and long-term value by investing in record numbers of clean diesel cars and SUVs.”

There were nearly 800,000 diesel car and SUV registrations at the end of 2012, with 27 models of diesel passenger vehicles available … plenty of choices for the discerning green driver.

Texas, California and Florida lead the country with the most diesel vehicles on the road.

Biodiesel

Biodiesel Giant REG Has Best First Quarter Ever

John Davis

reg-logoRenewable Energy Group (REG), the nation’s largest producer of biodiesel, posted its best first quarter ever. The Iowa-based producer of the green fuel announced its financial results for the quarter that ended on March 31, 2013, with the first quarter 2013 adjusted EBITDA at $22.0 million after adjusting for the $57.4 million related to the 2012 retroactive reinstatement of the Biodiesel Mixture Excise Tax Credit, commonly referred to as the blenders tax credit (BTC). This compares to the same quarter a year ago of an adjusted EBITDA of $12.7 million before including the allocation of the 2012 retroactive BTC of $10.4 million. REG sold 38.9 million gallons of biodiesel during the first quarter, up 14 percent from the first quarter of 2012:

“This was our strongest first quarter ever for production and gallons sold,” said Daniel J. Oh, President and Chief Executive Officer. “Biodiesel demand is being driven by a number of positive factors including the 2013 RVO and biodiesel’s ability to meet certain advanced biofuel targets that are not being fulfilled by imported sugar cane ethanol.”

Oh added, “Demand also benefited from the reinstated tax credit, and new counter-seasonal markets such as Northeast heating oil. We are optimistic about industry conditions for the months ahead, and are taking concrete actions to capitalize on them.”

REG officials also credited their use of biodiesel Renewable Identification Numbers (RINS) to fulfill the advanced biofuel and renewable fuel (corn ethanol) renewable volume obligations (RVO) for helping the bottom line. REG also has a Rochester, New York distribution point to help boost winter heating oil mixed with biodiesel demand.

Biodiesel, REG