Iowa Gets Aggressive on Blend Wall

Joanna Schroeder

E85 pump in IowaThe Iowa Legislature has passed H.F. 640 that supports fuel choice for Iowa’s fuel retailers and consumers. The legislation protects retailers from Big Oil efforts to restrict competition by guaranteeing them the right to offer ethanol and biodiesel blends of their choice including E15, E85 and B20.

“This legislation represents a solid step forward for higher ethanol blends, consumer choice, and the federal Renewable Fuel Standard (RFS),” said Iowa Renewable Fuel Association (IRFA) President Rick Schwarck, CEO of Absolute Energy. “I find it ironic that Big Oil consistently claims that retailers don’t want to sell higher ethanol blends like E15, yet they use every trick in the book to prevent retailers from offering E15.  In fact, the American Petroleum Institute (API) fought tooth and nail to try to keep these retailer protections out of the bill.  This bill tears down one part of Big Oil’s bogus blend wall in Iowa.”

The legislation includes a section that amounts to a retailer ‘Bill of Rights,’ preventing oil refiners’ supply agreements from directly or indirectly limiting the ability of local retailers to offer the ethanol and biodiesel blends they choose. The provision was based on a law enacted in South Dakota in 2011 and addresses specific, anti-competition provisions from actual refiner supply agreements.  As a result, new supply agreements will not be allowed to:

  • Restrict fuels from other suppliers;
  • Restrict installing a blender pump;
  • Restrict using current equipment from offering higher blends, like E15, E85, and B20;
  • Restrict ethanol or biodiesel blends from being advertised;
  • Restrict the locations where a retailer may offer the higher blends (like under a canopy); and
  • Restrict payment for higher blends to cash only (no credit cards).

“One supplier should not be allowed to dictate to local retailers what they can and cannot do with products from other suppliers,” continued Schwarck.  “More freedom for retailers to offer the fuels they choose often means more ethanol and biodiesel blends, which benefits consumers by increasing competition at the pump.  And it also means more RINs will be generated for use in complying with the federal RFS.”

Biodiesel, biofuels, E15, E85, Ethanol, Iowa RFA, Renewable Energy

Bioenergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFVIASPACE has signed a joint development agreement with Grain Hill / AGRICORP to establish, develop, build, own and operate a 2,100 acre Giant King Grass plantation and a co-located 12 MW biomass power plant. The two companies will be equal shareholders.
  • Green Plains Renewable Energy has qualified for recognition under the International Sustainability & Carbon Certification (ISCC) program, based on the findings of a third-party audit conducted by SCS Global Services.  SCS found that Green Plains’ biofuels production and use results in less than half (about 45%) of the greenhouse gas emissions associated with ordinary gasoline. The award of certification confirms that Green Plains is in compliance with the European Union’s Renewable Energy Directive, allowing the company to export biofuel to Europe.
  • Alterra Power Corp. has announced the completion of a joint venture agreement with Energy Development Corporation (EDC) for the development of Alterra’s Mariposa geothermal project in Chile plus three geothermal concessions held by Alterra in Peru.
  • Globeleq has inaugurated its 44 MW Eolo de Nicaragua S.A. (Eolo) wind farm in Nicaragua. The Eolo wind farm is located in the province of Rivas on the shores of Lake Nicaragua, about 123 kms south of the capital Managua.  Using 22 x 2.0 MW Gamesa G90 wind turbine generators, electricity is sold through two 20-year PPAs to the national privately owned distribution companies.
Bioenergy Bytes

April Biodiesel Production Hits 110 Million Gallons

John Davis

nbb-logoNew numbers from the EPA show that biodiesel production in the U.S. hit 110 million gallons in April … staying on pace to hit more than a billion gallons for this year. The National Biodiesel Board hopes the green fuel can exceed targets set under the Renewable Fuel Standard (RFS) for a third consecutive year:

The numbers show a total of more than 118 million gallons of Biomass-based Diesel for April, but that total also includes production of renewable diesel. The biodiesel portion of the total was 110 million gallons – roughly the same production as in March and putting year-to-date biodiesel production through the end of April at almost 369 million gallons.

NBB also points out that the biodiesel industry supports about 50,000 jobs across the country.

Biodiesel, Government, NBB

Tesla Repayment Testiment to DOE Loans

Joanna Schroeder

Electric vehicle manufacturer Tesla Automotive has repaid its entire $465 million DOE loan guarantee the company received from the U.S. Department of Energy (DOE) nine years earlier than originally required. New Energy Secretary Ernest Moniz said of the feat, “When you’re talking about cutting-edge clean energy technologies, not every investment will succeed — but today’s repayment is the latest indication that the Energy Department’s portfolio of more than 30 loans is delivering big results for the American economy while costing far less than anticipated.”

The program came under fire in 2011/2012 when solar manufacturing company Solyndra filed for Chapter 11 bankruptcy and ceased all operations after receiving a Tesla EVsignificant amount of loans and grants from the DOE. Yet Moniz noted that more than 90 percent of loan loss reserve Congress established remains intact with losses only representing about 2 percent of the overall $34 billion portfolio.

“The Department first offered loans to Tesla and other auto manufacturers in June 2009, when car companies couldn’t get other financing and many people questioned whether the industry would survive,” continued Moniz. “Today, Tesla employs more than 3,000 American workers and is living proof of the power of American innovation.  This is another important contribution to what the Obama Administration has done to preserve and promote America’s auto industry.

“Finally, this announcement is also good news for the future of America’s growing electric vehicle industry.  While the market has taken longer than predicted to get going, sales of electric vehicles in the U.S. tripled last year and are continuing to increase rapidly in 2013.  Tesla and other U.S. manufacturers are in a strong position to compete for this growing global market,” Moniz concluded.

Tesla’s $465 million loan enabled it to reopen a shuttered auto manufacturing plant in Fremont, California and to produce battery packs, electric motors, and other powertrain components. Tesla vehicles have won wide acclaim, including the 2013 Car of the Year from both Motor Trend and Automotive Magazine, and Consumer Reports recently rated Tesla’s Model S as tied for the best car ever rated. Tesla has created more than 3,000 full-time jobs in California – far more than the company initially estimated – and is building out a supply chain that supports numerous additional jobs and technologies, and is bringing advanced manufacturing technology back to America.

Alternative energy, Electric Vehicles

Bioenergy Bytes

Joanna Schroeder

  • The American Coalition for Ethanol (ACE) has joined the ASTM (Formerly American Society for Testing and Materials) Technical Committee D02 on Petroleum Products and Lubricants, represented by ACE Senior Vice President Ron Lamberty.BioEnergyBytesDF
  • Solar garden developer Clean Energy Collective (CEC) is working to build the first community-owned solar garden in Putney, Vermont. Reservations are available for the Putney Community Solar Array, a 147 kW photovoltaic (PV) system. The 588-panel solar garden owners will receive all rebates and tax incentives.
  • N.C. State University has been awarded a three-year $6,200,000 award for the Clean Fuel Advanced Technology (CFAT) project from the North Carolina Department of Transportation. The CFAT project focuses on improving air quality in 24 non-attainment counties throughout the state and includes a public education campaign and the launch of a green fleet.
  • Sempra U.S. Gas & Power and Consolidated Edison Development are partnering on two of Sempra U.S. Gas & Power’s solar power facilities, the 150-megawatt (MW) Copper Mountain Solar 2 plant near Las Vegas and the 150-MW Mesquite Solar 1 power plant near Phoenix. Under the sales agreement, each company will own a 50-percent interest in the two solar facilities, which are among the largest photovoltaic plants in the U.S.
  • CleanFUEL USA has partnered with the City of Springfield, Illinois to convert 24 police cars and pickup truck to propane autogas. Fuel savings for the first year is estimated to be more than $82,000.
Bioenergy Bytes

EMCORE Wins NASA Solar Contract

Joanna Schroeder

EMCORE Corporation has been awarded a contract by ATK to design and manufacture solar panels for NASA’s Green Propellant Infusion Mission (GPIM) planned for launch in 2015. The solar panels include EMCORE’s most advanced XTJ triple-junction solar cells, and will power a satellite that will carry the GPIM payload. ATK will integrate the EMCORE’s solar panels into its heritage-designed solar arrays for final flight configuration for the GPIM satellite.

705062main_gpim_earth_flyover_226One goal of the GPIM project is to demonstrate the practical capabilities of AF-M315E, a high-performance green alternative to hydrazine that has traditionally been used to fuel several spacecraft. This low-toxicity propellant is expected to improve overall vehicle performance – more fuel can be stored in current containers and it delivers greater thrust per given quantity of fuel.

“ATK is pleased to be providing the solar arrays for the GPIM project to Ball Aerospace, and we look forward to another successful collaboration with EMCORE in support of this innovative program,” said Dave Messner, General Manager of ATK Space Systems in Goleta, Calif.

GPIM is supported by co-investigators including NASA’s Glenn Research Center and the U.S. Air Force Research Laboratory at Wright-Patterson Air Force Base in Ohio; Aerojet Corporation, a GenCorp company in Washington; NASA’s Kennedy Space Center in Florida; and the U.S. Air Force Space & Missile Systems Center at Kirtland Air Force Base in New Mexico.

“EMCORE is extremely pleased and honored to receive this program award from ATK,” added Brad Clevenger, Ph.D., General Manager of EMCORE’s Photovoltaics Division. “EMCORE has partnered with ATK on many successful missions, and we greatly value our long-standing business relationship. We look forward to supporting ATK on the Green Propellant Infusion Mission.”

Alternative energy, Solar

AFAI Completes Jatropha-to-Biodiesel Research

John Davis

afaA Florida-based biodiesel company says it has completed its research into using jatropha as a feedstock at its Central American operation. In a news release published in the Sacramento Bee, Alternative Fuels Americas, Inc. (AFAI) says it successfully completed research trials and is moving to establish above ground oil fields as a staged entry into a market forecasted to exceed $500 billion by 2019.

AFAI operates a 25 acre pilot plantation with 40,000 mature Jatropha trees in Tempate, Costa Rica. During the past years AFAI has conducted trials to establish best-practice protocols for maximum crop yield and production profitability. AFAI has successfully concluded its trials and plans to transition its activities to commercial scale.

“We have a strong degree of certainty that we can successfully farm and harvest Jatropha for the purpose of profitably producing biodiesel. We have dedicated much time and substantial resources to reaching this goal, which was a necessary rite of passage,” comments AFAI CEO Craig Frank. “Now that we have reached our breakthrough we can continue towards profitably producing and selling biodiesel and initiate our plans to enter additional markets worldwide.”

AFAI considers itself a “seed to pump” vertically integrated energy company.

Biodiesel, International

REAP Deadline Extends, Creates More Biogas Opps

John Davis

usda-logoThe U.S. Department of Agriculture extends the deadline on a program that could see more farmers, especially those in the dairy industry, turning livestock waste into energy. The deadline to submit for funds under the Rural Energy for America Program (REAP) and Dairy Industry Memorandum of Understanding has been extended to to May 31, 2013. During a teleconference moderated by Jerry Bingold from the Innovation Center for U.S. Dairy, the USDA’s Energy Policy Advisor for Rural Development Todd Campbell said this is a top priority of his agency.

“Taking biomass feedtsock and creating renewable energy, helping to implement enhanced manure management techniques, it not only helps our dairy farmers across the country to continue to be the great stewards of the land, it makes also makes real dollars and cents in their farming operations,” Campbell said.

Kelley Oehler, USDA’s Branch Chief Energy Division said the budget battles that have resulted in continuing resolutions, instead of real federal budgets, actually helped more money go to REAP.

“We’re still working with budget to identify the specific amount, but what I can tell you is it is significantly more than the [$20.8 million original amount announced in the March 29, 2013 deadline],” Oehler said.

More money meant they needed more time to give out the grants for things such as grants for under $20,000 programs, feasibility study grants (up to $50,000), and grants and combination grants-loans for things like biodigesters (which could be up to $500,000 for those digesters) that dairy farmers can use to turn waste into energy. Guaranteed loan-only deadlines remain at July 15, 2013. (More information available here.) Another program, the 9005 Program (for advanced biofuels payments made from things, such as biodigesters) will have a notice go out shortly that will have an additional 30 days, usually sometime in October.

Meanwhile, Campbell and Oehler praised the recent renewal of the Memorandum of Understanding (MOU) signed to accelerate the adoption of innovative waste-to-energy projects and energy efficiency improvements on U.S. dairy farms, both of which help producers diversify revenues and reduce utility expenses on their operations. The original MOU was signed in Copenhagen, Denmark, in 2009.

“Through the renewed commitment, the USDA, working with the Innovation Center for U.S. Dairy, will continue the research, development and deployment of these technologies that are helping to make dairy farmers’ operations more sustainable,” Campbell said.

Listen to an edited version of the teleconference here: USDA Teleconference on REAP

Audio, biodigester, biogas, dairy, USDA

Is Ag Marketing Itself Well or Not?

Talia Goes

With all the farm bill activity in Congress this past week, our latest ZimmPoll asked “What’s your opinion of committee farm bill?” From the results, most think it’s better than nothing.

Our poll results: 18% said Better Than Nothing and Other, 14% said Hits Nutrition Too Hard and Bad For Everyone, nine percent said Senate Better Than House, Bad For Farmers, Will Help Conservation and Great For Everyone, and nobody said House Better Than Senate. Poll results are all over the charts this week with mixed reviews and disagreement with particular sections of the farm bill.

Untitled

Our new ZimmPoll is now live and asks the question, “Is agriculture doing a bad job of marketing?” Marketing seems to be the key to a successful industry. The public often gets a bad taste for agriculture after “issues” hit the media. Do we cover our tracks and market the good along with the benefits to agriculture, not to mention the must haves of it? Let us know.

ZimmPoll is sponsored by New Holland Agriculture.

ZimmPoll

Absolute Energy Offers Drivers Relief at the Pump

Joanna Schroeder

As Memorial Day approaches marking the beginning of summer driving season, gas prices have spiked. Last week, gas prices went up .19 cents per gallon in Minnesota Gas PricesIowa with ending average prices at $3.70 per gallon. Spikes were even higher in Minnesota/St. Paul with prices averaging $4.21 across the state while the national average is around $3.60 per gallon.

In response Absolute Energy, an ethanol plant located on the Iowa-Minnesota border, is offering Minnesota drivers some relief at the pump in the form of ethanol. Absolute Energy is offering E85, (85 percent ethanol / 15 percent gasoline), in bulk to gas marketers impacted by the recent shut-down of three oil refineries for mostly seasonal reasons. According to E85Prices.com this week, the published average statewide E85 price is averaging $3.08 and has been reported to be as low as $2.39 per gallon in Eagan, Minn.

Rick Schwarck, CEO of Absolute Energy, said, “With gas prices spiking and ethanol plentiful in the Midwest, this will be the summer of the flex-fuel vehicle. Drivers of FFVs should be able to take advantage of serious savings at the pump by using E85. Not only will they be saving money, they will be choosing a fuel alternative that creates jobs and opportunities throughout Minnesota, Iowa and other states. E85 will drive us toward a cleaner, brighter summer sky thanks to lower greenhouse gas emissions while also strengthening our national security and economy.”

biofuels, E85, Ethanol