SGI Enters Into Algae Partnership with ExxonMobil

Joanna Schroeder

Synthetic Genomics (SGI), has entered into a new co-funded research agreement with ExxonMobil to develop algae biofuels. The new agreement is a science research program that focuses on developing algal strains with significantly improved production characteristics by employing synthetic genomic science and technology. Financial details of the agreement were not disclosed.

Plant Genomics SGI“We look forward to working with ExxonMobil to undertake this in-depth focus on the basic science research to better understand and enhance algae,” said J. Craig Venter, Ph.D., SGI’s founder and chief executive officer.  “The new agreement gives us an opportunity to really focus on improving algal strains using our core synthetic biology technologies to develop biofuels.”

In June 2009, SGI and ExxonMobil announced a research and development alliance focused on naturally occurring and conventionally modified algae strains. According to a news release, during the past four years, the companies have gained considerable knowledge about the challenges in developing economical and scalable algae biofuels. SGI also made significant strides in understanding algae genetics, growth characteristics, and enhancements to algae to improve algal biomass and lipid productivities.

According to SGI, this new agreement places greater emphasis on basic scientific research to develop strains which reproduce quickly, produce a high proportion of lipids and effectively withstand environmental and operational conditions. The company currently has two facilities – a smaller scale research greenhouse and laboratory near the SGI campus in La Jolla, CA, and a larger-scale development and commercial production facility with closed photobioreactors, open ponds and product recovery unit operations in Imperial Valley, CA.

advanced biofuels, algae

Researcher Explores Using Tobacco for Biodiesel

John Davis

lemaux1You can’t smoke it … well, you SHOULDN’T smoke it … but you might be able to burn it. A researcher from the University of California is working on getting more oils out of tobacco plants so it can serve as a feedstock for biodiesel, providing a green fuel source while finding a market for tobacco growers without it harming people’s health.

Peggy G. Lemaux, UC Cooperative Extension specialist, and Anastasios Melis and Krishna Niyogi, Agricultural Experiment Station faculty in the Department of Plant and Microbial Biology at UC Berkeley, are lead researchers in the project.

“There are several reasons we are modifying tobacco to produce biofuel,” Lemaux said, “It is a high biomass crop. If you want to extract oil, then the more biomass you have, the more oil you get. And, since tobacco is not a food source, tobacco production for biofuel would not have an impact on global food markets or find its way into the food supply. Finally, tobacco farmers are anxious to produce a product that is more acceptable to the public.”

The article goes on to say how the researchers are using algae genes to help the tobacco plants produce more oil. A commercially viable method is still in the distance, but Lemaux is optimistic. The school received a three-year $4.8 million grant from a U.S. Department of Energy to conduct the research.

Biodiesel, Research, University

Boston Goes Solar

Joanna Schroeder

The Boston/Dedham Commerce Park is the new home of the largest rooftop solar array in the City of Boston. The 974 kilowatt capacity solar project was completed by FireFlower Alternative Energy in partnership with First Highland Management & Development and spans 12,000 square feet. The solar system to produce enough electricity to “fuel” approximately 65 percent of the building’s energy needs.

FIREFLOWER ALTERNATIVE ENERGY KATHY DOYLE“This is an important milestone for the City of Boston,” said FireFlower founder Kathleen C. Doyle. “Large scale solar installations such as this benefit the environment by providing clean, renewable power at no additional cost to the tenants while helping the property owner’s bottom line. It’s a win-win for the tenants and owners and our local economy.” Doyle also powers her own home with solar energy.

First Highland’s Boston/Dedham Commerce Park is a 450,000 SF multi-use building currently home to a diverse group of tenants, including RR Donnelly, the Dancing Deer Baking Company and the nonprofit Hyde Park Open Studios. Broadway Electrical Company, Inc., one of the Northeast’s largest electrical contractors, completed the installation. Financing was provided by Commerce Bank.

The solar array is net metered and interconnected to the NSTAR grid, generating renewable power with an estimated annual market value of over $180,000. Additionally, the sale of Solar Renewable Energy Certificates (SRECs) created by the state to help incentivize solar development in Massachusetts helped make the project possible.

Alternative energy, Electricity, Energy, Solar

Study: RIN Prices for E85 Expansion

Joanna Schroeder

According to recent study by FAPRI-MU higher biofuel blending requirements through the Renewable Fuel Standard (RFS) increase the incentives to use higher biofuel blends, as seen by high Renewable Identification Number (RIN) prices so far this year. The study began with baseline projections for biofuel and agricultural markets and then built on a series of assumptions about how the RFS will be implemented and how market participants will respond.

FAPRI logoOne key question of the study: what will happen when the RFS requires greater levels of biofuel use than can be achieved with 10 percent ethanol blends and mandated levels of biodiesel use?

The baseline assumes that domestic ethanol use will exceed the 10-percent “blend wall” if the effective cost of ethanol to blenders and fuel consumers drops low enough, long enough to encourage the use of higher-level blends such as E85 and E15; yet, how low and how long. The baseline assumes that use of these higher-level blends will only increase significantly if the consumer-level cost of these fuels is at a slight discount to conventional fuels, even after taking into account the lower energy value of ethanol-blended fuels.

The report looked at these questions from different perspectives using alternative assumptions about the implementation of the RFS and the behavior of biofuel market participants:

1. The first section calculates hypothetical RIN prices that would cover costs and discounts necessary to encourage expanded use of E85. Under one set of assumptions, the implied RIN values are very close to those recently observed in the market, but plausible changes in assumptions yield estimates that range from $0.28 to $2.34 per gallon.

2. The second section examines a scenario that assumes ethanol-blended fuel must sell at a deeper discount to conventional gasoline to encourage use of high-level blends—a somewhat steeper blend wall. This scenario results in less ethanol use than in the baseline, higher RIN prices, and increased use of biodiesel. However, the changes in quantities produced and consumed are fairly modest, so long as there remains a price that can encourage increased use of higher-level blends.

3. The third section explores the implications of alternative RFS implementation strategies and how they interact with alternative assumptions about the steepness of the blend wall. All else equal, the greater the total and advanced biofuel mandates, the greater the value of RINs and the greater the use of biodiesel. A steeper blend wall also results in greater RIN values and biodiesel use. Several different scenarios result in fairly similar levels of use of corn ethanol in 2013/14, provided that mandates are enforced.

4. The final section explores an extreme scenario where there is no price that will induce the use of higher-level ethanol blends. If the RFS remains in place, such a scenario would require large increases in biodiesel use that would require very high RIN prices and result in large increases in vegetable oil prices. Such RIN and biodiesel prices could induce new renewable fuels or trade patterns, and might be inconsistent with the view that ethanol expansion is impossible.

Biodiesel, biofuels, Ethanol, RINS

Ethanol, Biodiesel Groups Welcome New Energy Sec.

John Davis

moniz2The U.S. Senate today confirmed Ernest Moniz to replace Steven Chu as the Nation’s Secretary of Energy. The 96-0 vote was welcomed by biodiesel and ethanol groups:

steckel2“Throughout his career, Ernest Moniz has supported efforts to move beyond fossil fuels to a cleaner, more secure energy future in which renewable sources play a prominent role,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board. “He knows that advanced biofuels like biodiesel are critical to our long-term energy and environmental security, and he has supported practical policies aimed at developing renewables in order to reduce our dependence on petroleum, create jobs and reduce harmful emissions.”

mcadams3Michael McAdams, president of the Advanced Biofuels Association, issued a statement in support of the confirmation. “We are pleased that President Obama tapped such a strong advocate for policy that supports solid energy growth and is a friend of the advanced biofuels community.”

buis2“I would like to congratulate Ernest Moniz on his confirmation as the Secretary of Energy. President Obama has chosen an excellent and well-qualified individual to lead the Department of Energy and I look forward to working with Secretary Moniz to continue to advance the growth and development of sustainable biofuels,” said Tom Buis, CEO of Growth Energy.

dineen1.jpgThe Renewable Fuels Association also congratulated Moniz. “Given his background and expertise in energy, we look forward to the secretary’s first visit to an ethanol plant. We are eager for him to see firsthand the positive economic impact the renewable fuel standard has had in creating new jobs and revitalizing rural economies,” said Bob Dinneen, president and CEO of the RFA.

brookeBrooke Coleman, executive director of the Advanced Ethanol Council, added his praise of the pick. “Secretary Moniz has just the right combination of technical expertise and political experience to be very effective as the new Secretary of Energy. He clearly understands what it takes to commercialize new energy technologies, and we look forward to working with the Secretary and his colleagues going forward as the advanced ethanol industry deploys commercially in the United States and abroad.”

advanced biofuels, AEC, Biodiesel, Ethanol, Government, Growth Energy, NBB, RFA

Groups Seek to End EU Duty on US Ethanol

Cindy Zimmerman

The Renewable Fuels Association (RFA) and Growth Energy have filed a complaint with the General Court in Luxembourg challenging the European Union’s (EU) decision to impose a 9.6 percent antidumping duty on all ethanol imported from the United States.

Growth_Energy_logo-1The complaint outlines 10 specific violations of one established trade law committed by the European Commission in its investigation of anti-dumping claims, and the imposition of a country-wide anti-dumping penalty, against all U.S. ethanol. These include errors in the assessment of relevant facts in determining injury and dumping margins as well as violations of the EU’s own rules regarding the implementation of anti-dumping penalties, such as their refusal to calculate individual dumping margins and assign individual dumping duties, their incomplete and inaccurate calculation of an alleged injury margin, and their overstatement of the volume of imports from the U.S. The complaint from RFA and Growth Energy requests the complete and total end of the duty.

RFA-logo-13The RFA and Growth Energy are trying to remedy the situation through other avenues as well. EU’s determination to impose the duty violates various requirements put in place by the World Trade Organization (WTO). Consequently, RFA and Growth Energy are working with appropriate officials in the United States to pursue a challenge before the WTO.

Earlier this month, 14 Senators signed a bipartisan letter to Acting Commerce Secretary Rebecca Blank and Acting US Trade Representative Demetrios Marantis demanding that the Administration carefully evaluate the EU’s decision to impose a duty on imported ethanol and consider challenging the WTO requirements.

Ethanol, Ethanol News, Exports, Growth Energy, International, RFA

No Mandatory Energy Funding in House Farm Bill

Cindy Zimmerman

house-agThe House Agriculture Committee passed the Federal Agriculture Reform and Risk Management Act (FARRM) of 2013 by a vote of 36 to 10 late Wednesday night. While the bill does contain an energy title, an amendment to make funding of energy programs mandatory was defeated.

“We thank the entire committee for reauthorizing the programs, but mandatory funding is vital to their continued success. We look forward to working with all Congressmembers and Senators to ensure that a Farm Bill gets enacted this year that includes mandatory funding for these important programs,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.

The Senate version does contain mandatory funding for renewable energy and energy efficiency programs. “We thank the members of the Senate Agriculture Committee, especially Senator Amy Klobuchar for increasing the funding for the Renewable Energy for America Program, and Senators Joe Donnelly and Pat Roberts for a bipartisan proposal to improve risk management options for biomass crops,” said Lloyd Ritter, co-director of the Agriculture Energy Coalition. “We look forward to working with them to ensure the continued success of Farm Bill energy programs.”

“Funded farm and energy policy is better: it puts those benefits into action. On that score, we’re concerned the House bill missed the mark,” Adam Monroe, Americas Regional President of Novozymes, said of the committee bills. “While we appreciate the House Agriculture Committee reauthorizing the biomass programs, we urge them to follow the Senate committee’s lead and support a strong, fully-funded energy title.”

The Senate bill is expected to go to the floor next week while the House bill is slated for next month.

advanced biofuels, biomass, Energy, Ethanol, Ethanol News, farm bill, Government

Keeping RFS Still Top Concern for Ethanol Industry

Cindy Zimmerman

Progress on a new farm bill is all well and good but defending the Renewable Fuel Standard remains the top priority for the ethanol industry.

buis-ww“The attack on the Renewable Fuel Standard is first and foremost and coupled with it is the blend wall,” said Growth Energy CEO Tom Buis st the National Association of Farm Broadcasting annual Washington Watch issues forum this week. “Oil has never been a fan of the RFS and they knew this day was coming. As we’re up against the 10% blend wall, rather than doing what the law allows and blending higher blends or helping to build out the infrastructure for higher blends to give consumers choice at the pump, they’ve decided they just want to eliminate it and eliminate competition.”

Buis notes that, despite weather challenges this year, corn growers will continue to grow enough corn to meet all needs.

Listen to an interview with Buis here: Interview with Tom Buis, Growth Energy

Audio, Ethanol, Ethanol News, farm bill, Growth Energy, RFS

REG Signs Agreement with Iowa Biodiesel Plant

John Davis

reg-logoIt appears biodiesel giant Renewable Energy Group (REG) has inked a contract manufacturing agreement with an Iowa biodiesel maker. Biodiesel Magazine reports REG signed the 12-month contract with Iowa Renewable Energy LLC to purchase raw materials for the 30 MMgy multifeedstock plant and market biodiesel produced at IRE’s refinery.

“We are pleased REG has chosen to work with Iowa Renewable Energy,” said Ron Lutovsky, IRE’s chief operations officer and chief financial officer. “Our focus on fuel specifications and our BQ-9000 processes are aligned with REG’s commitment to biodiesel quality.”

Biodiesel from the IRE facility will be used to meet growing national and regional demand according to Gary Haer, REG’s vice president of sales and marketing. “We are working closely with the IRE team to include their gallons with biodiesel from our existing REG plant network to fulfill new and existing contracts.”

“IRE’s processing technology allows REG to expand our diverse raw material procurement strategy as well as our transportation and logistics programs to meet our growing customer demand,” said Dave Elsenbast, REG’s vice president of supply chain management.

REG was the actual general contractor and technology provider for the construction of the IRE facility back in 2007.

Biodiesel, REG

Argentina Fights Back Against EU Biodiesel Block

John Davis

areu-flagThe Argentinians are not sitting by and letting the European Union block their exports of biodiesel. Bloomberg reports the country filed a challenge against the EU with the World Trade Organization:

The EU is studying whether to levy import tariffs on countries including Argentina and Indonesia that may be exporting biodiesel with state aid like it did for U.S.-based ethanol producers in February, Roberto Rodriguez Labastida, a London-based analyst at Bloomberg’s New Energy Finance, said today by phone.

“The EU is now collating data on how much specific Argentinean companies are exporting so that if it decides that there’s a real threat of dumping it can quickly introduce measures to counter them,” Labastida said.

The EU has 60 days to address the complaint, according to the statement. The WTO will publish additional information on the complaint in the next few days, it said.

Argentina levies an export tariff on soybean that sometimes is lower than on biodiesel, the fuel that it’s processed into, Labastida said. That may lead to lower prices of the vegetable oil, which offers an advantage to Argentinean biodiesel refineries over European refineries that use the feedstock.

Argentina is the world’s largest exporter of soybean biodiesel. It filed a separate WTO complaint against Spain last year when the Spanish decided to use just EU fuel to meet transportation biofuels quotas. Spain reversed that decision.

Biodiesel, International