Biodiesel Giant REG Inks Deal for Fuel Tax Software

John Davis

reg-logoThe nation’s largest biodiesel maker, Ames, Iowa-based Renewable Energy Group (REG), signed a multi-year deal with energy industry software and services company FuelQuest Inc. Biodiesel Magazine reports the deal will give REG a more accurate, transparent and agile way to calculate fuel taxes on invoices:

“Our business is growing quickly across North America,” said Jonathon Schwebach, senior manager of tax at REG. “With Zytax Determination integrated into our JD Edwards back office, we expect to achieve efficient automation of tax calculations for all of our fuel transaction invoices, which will also reduce tax accounting and support costs within the organization. Zytax Determination will allow us to scale with confidence, meeting the expectations of our customers as a reliable supplier providing accurate invoices and a seamless customer experience.”

FuelQuest Zytax Determination automates the identification and calculation of taxes for fuel, including petroleum products, natural gas, biodiesel and other products. A leading cause of inaccurate fuel invoices is incorrect tax calculations, which leads to higher internal processing and support costs as well as increased levels of customer dissatisfaction.

Phil Fraher, COO and CFO of FuelQuest [says,] “Fuel taxes are highly complex and continuously evolving. Automating tax calculations with Zytax Determination software that tracks and applies rates and rules for all major jurisdictions is the only way to achieve operational scale and reduce risk.”

The article goes on to say that Zytax Determination will give biodiesel makers more financial control, more reliable and trusted invoicing, and streamlines complex and changing tax rates and rules.

Biodiesel, REG

Purdue Study: Indiana, Midwest Open to Wind Energy

John Davis

Purdue University College of Agriculture funded studies shows Hoosiers, and possibly by extension, Midwesterners, are pretty receptive to wind energy. This school news release says that can even be true for areas that might have rejected wind turbine development:

prokopy1Linda Prokopy, an associate professor of natural resources planning, said much of the research on attitudes toward wind energy and wind farms has focused on coastal states and the reasons people don’t want turbines in their communities. She and Kate Mulvaney, a former graduate student, wanted to know how people in the Midwest feel about having wind farms in their communities and the factors that led some places to embrace or reject them.

Prokopy and Mulvaney published two studies on their results in the journals Energy Policy and Environmental Management. One focused on Benton County, Indiana, which has embraced wind farms. The other study compared Benton County with two other Indiana counties – Boone County, which rejected wind farm development, and Tippecanoe County, which at the time was still considering wind farms. The researchers conducted surveys and interviews and studied local newspaper articles on wind energy.

“We found that there is not a lot of opposition from the people in the Midwest,” Prokopy said. “And there are not a lot of perceived negative impacts from people who have or live near wind turbines.”

The survey found that more than 80 percent of respondents said they either supported wind farms in their counties or supported them with reservations. Those most opposed to wind turbines seemed to be those who worked in big cities, such as Indianapolis, but lived in rural areas. They were small in number but loud in opposition.

Research, University, Wind

Wind Energy to Create Boon for Carbon Fiber Industry

John Davis

Sancton Hill Wind Farm UK Photo Credit: Arnold UnderwoodBig gains in the wind energy industry will lead to gains in the carbon fiber industry. A new report from GBI Research shows that, globally, demand for carbon fiber, a technology making gains as a lighter, stronger alternative to current wind blade materials will nearly triple in the next few years:

[Global] carbon fiber demand will hit 153,700 tons in 2020, climbing from 52,500 tons in 2012 – a massive increase of 193% in just eight years.

Wind energy – a vital segment of the rapidly expanding renewable energy market – will be the key driver of the carbon fiber industry, says GBI Research. Currently, wind turbine blades constructed from Glass Fiber Reinforced Polymer (GFRP) dominate the industry landscape, but due to their greater rigidity, lower weight and reduced cost, producers are making the move to carbon fiber alternatives.

Considering this shift in manufacturing materials, combined with the increasing deployment of wind farms across the world, GBI Research forecasts carbon fiber demand for the wind energy industry to jump from 12,270 tons in 2011 to 67,400 tons in 2020, making it the single largest carbon fiber end user segment by some margin.

Aircraft manufacturers are also expected to help drive the uptick in carbon fiber demand, with the Airbus A380 and Boeing 787 Dreamliner a couple of the biggest users.

Read the report here.

Wind

Report: Iowa Biodiesel Sales Triple In 2 Years

Joanna Schroeder

Biodiesel Pump Photo Joanna SchroederAccording to a new report from the Iowa Department of Revenue (DOR), the total amount of biodiesel blended into diesel in Iowa has more than tripled from 7.4 million gallons in 2010 to 23.3 million gallons in 2012.

The report also shows that biodiesel’s market penetration has also made great strides, with biodiesel now blended in 42.6 percent of all Iowa diesel sales, an increase of more than 10 percent since 2010. Of those sales, the average biodiesel content has more than doubled since 2010 from 3.1 percent to an 8.1 percent blend of biodiesel.

“Based on the data, it’s obvious that both retailers and consumers are realizing the benefits of biodiesel, and that’s a win for Iowa,” said IRFA Communications Director T.J. Page. “Taking into account the switch in the state’s retailer tax credit from being applied to a 2 percent biodiesel blend to a 5 percent biodiesel blend and the continued support of the Renewable Fuel Standard (RFS), I expect biodiesel sales to continue on this upward trajectory and grow dramatically in the coming years.”

Randy Olson, executive director of the Iowa Biodiesel Board also noted that biodiesel has room for growth for on-farm usage. Just 30 percent of distributors, he says, reported carry biodiesel.

“We’re encouraging our state’s farmers to demand biodiesel as they head into spring planting, and we believe distributors will respond to their customers,” Olson said.  “Economic research shows soybean, corn, livestock and hog farmers all stand to gain from biodiesel production.  It is in their best interest to use their own product.”

To view the entire Iowa Department of Revenue report, please click here.

advanced biofuels, Biodiesel, Iowa RFA

Illinois Soybean Assn. Gets Pumped Up for Biodiesel

John Davis

Get+Pumped+Up+VideoThe Illinois Soybean Association’s checkoff-funded campaign touting the benefits of biodiesel is getting ready to make its next stop at a major petroleum tradeshow. Started in early February, ISA’s “Get Pumped Up!” On Biodiesel campaign goes to Indianapolis, Ind., for the Midwest Petroleum and Convenience Tradeshow (M-PACT), April 16-18th:

“A strong and growing biodiesel industry strengthens the Illinois soybean industry and the state’s economy,” says Lyle Wessel, soybean farmer from Waterloo, Ill., and ISA director. “Biodiesel’s environmental and cost benefits are central to ISA’s effort to get diesel drivers excited to fill up with this accessible, renewable fuel.”

ISA’s “Get Pumped Up!” On Biodiesel campaign debuted at the Mid-West Trucker and Trailer Show in Peoria, Ill., in early February. The campaign features a tradeshow display with an original animated video and an educational brochure customizable for the different segments of biodiesel customers. Visitors also receive a complimentary “Get Pumped Up!” hand gripper for completing a short survey about biodiesel use.

Aside from the economic value of production, the campaign touts biodiesel’s reliability, cost-efficiency and sustainability. Compared to petroleum diesel, biodiesel reduces greenhouse gases by more than 50 percent. Biodiesel blends are approved by most modern OEM automakers.

ISA points out that its state sells more biodiesel than any other state. Check out the YouTube video below.

Biodiesel, Soybeans, Video

Bioenergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFKatirina Tracy is stepping down as Chief Operating Officer of Cima Green LLC and into a new role as Senior Director of Sales and Operations. While highly effective as Chief Operating Officer over the last three years, this change in roles drives the organization’s new strategy towards greater market focus
  • SolarCity has been added to the Russell 200 (R) Russell 3000(R), and Russell Global(R) Indexes. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies.
  • Peder Holk Nielsen has officially taken over as President & CEO of Novozymes. Peder Holk Nielsen takes over as CEO from Steen Riisgaard, who steps down after 12 years in the company’s top post and 33 years in Novozymes and Novo Industri/Novo Nordisk.
  • SCS Global Services is expanding its biofuel certification services in Southeast Asia. The third-party environmental certification body will now conduct audits under the International Sustainability & Carbon Certification (ISCC) program, which will allow biofuel producers in Southeast Asia to meet the requirements for export into the European Union under the EU Renewable Energy Directive.
Bioenergy Bytes

Ethanol’s Enviro Benefits Keep on Growing

Joanna Schroeder

FossilThe National Corn Growers Association (NCGA) has developed a comparison of the environmental impacts of ethanol and petroleum as transportation fuels. Using scientific data, the side-by-side comparison examines a wide array of environmental factors. Most know today that petroleum, made from oil, is not “renewable”. Created over millions of years, it will takes thousands of years for more oil to be developed. However, ethanol made from corn is renewable, with each new crop, a new crop of ethanol can be produced.

Here are some other key highlights of NCGA’s comparison:

  • Ethanol is a tiny single substance that is non-toxic. Petroleum is a mixture of hundreds of different molecules and is toxic to biological organisms.
  • Corn used for ethanol in the United States is grown on approximately five percent of our nation’s cropland. For perspective, ethanol production uses less than three percent of all grain crops grown over the entire world. Petroleum is mined across the entire globe and must be extracted from deep underground. In order to collect petroleum, landscape fragmentation and the generation of toxic, hazardous and potentially radioactive waste streams often occurs.
  • Most corn-to-ethanol production facilities are located within 15 miles of the farms where the crop was produced. Since petroleum extraction happens across the globe wherever deposits can be found, it must be shipped to a facility where it can be refined.
  • Based on the results of scientific testing, the EPA considers corn starch ethanol as producing 23 percent less greenhouse gas emissions compared to making and burning gasoline from petroleum. Recent evidence shows multiple ways of producing ethanol with 50 percent or less GHG compared to gasoline production.
  • The U.S. oil and gas industry generates more solid and liquid waste than municipal, agricultural, mining and other sources combined.

NCGA says that looking at how the production of these fuels compares side-by-side, it becomes evident that ethanol is truly renewable and produced in a greener manner than its fossil fuel counterparts. Where petroleum creates reliance upon a fuel pulled from the ground and imported from abroad, ethanol improves our environment while increasing our national and energy security. Click here for the full comparison.

biofuels, corn, Environment, Ethanol, NCGA

BIOX, Shell Canada Ink Biodiesel Supply Agreement

John Davis

BIOXShellA biodiesel supply agreement between BIOX Corporation and Shell Canada is touted as being a big benefit for both Canadian companies. This BIOX news release says the company will pipe biodiesel from BIOX’s Hamilton refinery to the adjacent Shell distribution terminal and will provide a market for the refinery’s 67 million liters (approximately 17.6 million gallons) of biodiesel while helping Shell meet its Canadian requirement of renewable energy content.

“This agreement provides Shell Canada access to a secure, stable supply of renewable content for our diesel with the most efficient logistics possible,” said Esther Atere, Shell Canada Business Development Lead. “As well, it will assist Shell Canada in achieving the federal mandate of 2% renewable content in diesel fuel and heating distillate oil requirements.”

“This agreement is a great example of how the renewable fuels industry can work with the petroleum industry,” said Kevin Norton, Chief Executive Officer of BIOX. “Shell is investing in its distribution terminal to blend renewable content in diesel and we are investing alongside them to deliver biodiesel in the most efficient manner possible, through a pipe across the property line.”

The pipeline connecting the two facilities is expected to be completed late this year.

Biodiesel, International

Biodiesel Board’s Howell Picked as AOCS Fellow

John Davis

steve-howellIn an honor bestowed on just a few, the American Oil Chemists’ Society honors the National Biodiesel Board’s technical director Steve Howell with the prestigious AOCS Fellow Award. This NBB news release says Howell has been with the board for more than 20 years as it was just getting started, leading the biodiesel industry through completing Health Effects testing, establishing ASTM standards, and securing Original Equipment Manufacturer approval, to name just a few.

“Thanks to the many technical accomplishments of Steve Howell, the U.S. biodiesel industry is now a meaningful supplement to the nation’s diesel fuel supply,” said Joe Jobe, CEO of the National Biodiesel Board. The industry is on track for its vision of 10×22 – making up 10 percent of the overall U.S. diesel fuel supply by 2015 with a range of blends. “I can personally attest to his hard work, integrity, and very special talents. He deserves this recognition.”

Formal conferral will happen at the Society’s Annual Meeting in Montreal in May. To be named a Fellow is one of the highest forms of recognition conferred by AOCS, explained Mike Haas, a USDA researcher and Past President of AOCS.

“It’s also rare for a person who is not directly involved in research at a university or a national lab, where they would generate a trail of publications by which evaluators can assess impact, to be named an AOCS Fellow,” Haas said. “In its history AOCS has named only about 85 people as Fellows, and their names constitute some of the very best in the fats and oils professions from around the globe. Steve Howell deserves to be among them.”

Congratulations, Steve!

Biodiesel, NBB

Biodiesel RIN Defrauder Gets 15+ Year Sentence

John Davis

epa-logoThe Environmental Protection Agency is showing it’s serious about holding up the integrity of the Renewable Identification Number (RIN) system for renewable energy credits. The Lubbock (TX) Avalanche-Journal reports Jeffrey David Gunselman, the founder of Lubbock-based Absolute Fuels, got more than 15 years in prison and has to pay nearly $55 million in restitution and a $175,000 fine for his part in selling the RINs without the biodiesel to back it up.

Gunselman, 30, was sentenced to serve concurrent terms of 188 months on each of the 51 wire fraud counts, 120 months on each of 20 money laundering charges and 24 months each on four counts of making false statements under the federal Clean Air Act…

Gunselman has been held without bail, primarily in the Lubbock County Detention Center, since July. The federal charges arose from Gunselman entering nonexistent biodiesel quantities for sale on an Environmental Protection Agency database and selling the renewable identification numbers, also known as RINs…

The numbers, essentially a batch number that represented about two-thirds of a gallon of biodiesel, are used by oil refiners and shippers to show they are complying with EPA requirements for combining renewable fuels with gas and diesel refined from petroleum.

Ivan Vikin, the head of EPA’s criminal enforcement program in Texas, said: “Today’s judicial action demonstrates the consequences for exploiting the Renewable Fuels program in order to steal millions of dollars from customers and taxpayers.”

This follows February’s sentencing of a Maryland man who received 12 1/2 years prison and has been ordered to pay more than $42 million in restitution for selling fake credits to oil companies and commodities brokers.

Previously, the National Biodiesel Board formed a RIN Integrity Task Force that in the words of NBB Chairman Gary Haer, “…will not allow a few bad actors to risk the progress we have made for America’s Advanced Biofuel – biodiesel.”

Biodiesel, Government, RINS