FREE EPA Rulemaking Seminar

Joanna Schroeder

EcoEngineers is offering a FREE webinar for renewable fuel producers to offer clear direction for successfully implementing policies currently in process by the Environmental Protection Agency (EPA). The informational webinar on QAP A AND B and EPA’S Notice of Proposed Rulemaking (NPRM) is set for Wednesday, April 3, 2013 from 1-2 pm CST. During this session, EcoEngineers Partner and Chief Engineer Jim Ramm, PE, and Managing Partner Shashi Menon will discuss the Notice of Proposed Rulemaking as it currently stands, including updates from the recent public comments hearing in Washington.

EcoEngineers LogoIn the webinar, (register here) EcoEngineers will be outlining their QAP program, making policy recommendations, collecting feedback from the producer community and recommending steps for producers to take in order to have their voice heard at the EPA.

“There remain serious questions and concerns about the path ahead regarding the requirements of a QAP and related costs. It is important that producers understand the nature of the changes and have a voice in policy formation,” said Jim Ramm.

The USEPA, in a Notice of Proposed Rulemaking, has outlined two Quality Assurance Programs, QAP A and B. While both programs offer significant upsides, including preferred purchase of QAP A and B RINs by marketers and Obligated Parties, there are also challenges including the potential variations in scope and costs associated with the ongoing rulemaking process.

At EPA’s request, EcoEngineers has provided input into the quality assurance process, based on conversations with many producers, and testified at the public hearing in Washington.

“To our current customers, we will continue to offer the leadership you have come to expect in effecting a smooth, seamless transition to EPA’s comprehensive approach to RIN quality assurance,” added Ramm, “To those still weighing their options, we offer our support in helping you find the best solution for your unique situation.”

biofuels, Education

Renewable Energy Up, Enery Consumption, CO2 Down

Joanna Schroeder

According to the most recent issue of the “Monthly Energy Review” by the U.S. Energy Information Administration (EIA), with data through December 31, 2012, renewable energy sources and natural gas expanded rapidly during the Obama Administration’s first term while coal, nuclear power, oil imports and use, energy consumption, and CO2 emissions all declined significantly.

Comparing data for 2008 (last year of the Bush Administration) to data for 2012 (last year of the Obama Administration’s first term), domestic energy production from renewable energy sources (i.e., biofuels, biomass, geothermal, hydropower, solar, and wind) grew by 23.48 percent with wind and solar more than doubling their output.

EIA Primary Energy OverviewBy comparison, total domestic energy production from all sources increased by just 8.15 percent with domestic natural gas and crude oil production growing by 18.71 percent and 29.47 percent respectively. Moreover, during the same period, nuclear power output declined by 4.47 percent and domestic coal production dropped by 13.28 percent. Total energy use declined by 4.16 percent, petroleum consumption decreased by 6.95 percent, CO2 emissions dropped by 9.38 percent, and imports of crude oil and petroleum products fell by 17.32 percent.

“The numbers speak for themselves – notwithstanding politically-inspired criticism, the energy policies pioneered by the Obama Administration have generated dramatic growth rates for renewable energy during the past four years, while significantly reducing oil imports and greenhouse gas emissions,” said Ken Bossong, Executive Director of the SUN DAY Campaign. “The investments in sustainable energy made by the federal government as well as state officials and private funders have paid off handsomely underscoring the short-sightedness of seemingly endless proposals to slash or discontinue such support.”

Looking at all energy sectors (e.g., electricity, transportation, thermal), renewable energy sources accounted for 11.23 percent of domestic energy production in 2012 – compared to 9.84 percent in 2008. In fact, renewable energy sources provided 10.47 percent more energy in 2012 than did nuclear power, although nuclear still provides a larger share of the nation’s electricity (18.97% vs. 12.22%).

During the first four years of the Obama Administration, hydropower production grew by 7.01 percent, geothermal by 18.23 percent, biofuels by 40.66 percent, solar by 138.20 percent, and wind by 149.27 percent. Only biomass dipped – by 0.89 percent. Hydropower accounted for 30.21 percent of domestic energy production from renewable sources in 2012, followed by biomass (27.61%), biofuels (21.94%), wind (15.30%), geothermal (2.55%), and solar (2.39%). Note” These figures may not fully reflect the total contribution from renewable energy sources inasmuch as EIA data does not totally account for distributed, non-grid connected applications.

Geothermal, Hydro, Renewable Energy, Solar, Wind

Genuine Bio-Fuel Intros ‘Second Chance Program’

Joanna Schroeder

Genuine Bio-Fuel has designed a new program, called the ‘Second Chance Program,’ for staffing its company with quality, dedicated employees as well as to assist former inmates and Veterans reestablish themselves within society. Executive Vice President of Genuine Bio-Fuel Inc. Jeff Longo believes, “companies in the alternative Genuine Bio-Fuel Employeeenergy industry have a responsibility to spur job creation. What better way to spark the economy, then to employ and equip people eager to learn with the tools to build a better future for them.”

GBF’s Second Chance Program provides equal wage jobs to former inmates and Veterans. The program was established to create an environment where former inmates and Veterans are able to start a new life. In addition to each employee receiving another chance to rebuild their lives, Genuine Bio-Fuel also offers them free training if they want to pursue careers in the green sector.

The program’s success is partially due to the “hire, not fire” approach to staffing the program taken by the GBF executive team. Its outreach efforts include hiring Veterans who have just returned from serving our country as well as former inmates in need of a fresh start and new lease on life. Employees in this program are empowered through comprehensive on-the-job training, and as a result GBF has built cohesive team driven environment and experiences low attrition rates.

Longo added, “We hope to serve as a positive example in the biodiesel industry of what happens when businesses begin investing in people again.”

advanced biofuels, Alternative energy, Biodiesel

An American Success Story

Joanna Schroeder

The American Coalition for Ethanol (ACE) has created an ‘infographic’ promoting the benefits of the Renewable Fuel Standard (RFS). Entitled “An American Success Story,” the new infographic pinpoints how the RFS is accomplishing the goals set by Congress.

snapshot of ACE RFS Infographic“ACE’s infographic is a vivid and effective ‘show and tell’ tool for ethanol advocates to use in proactively promoting the benefits of the RFS,” said Brian Jennings, ACE Executive Vice President. “The RFS costs taxpayers nothing and has spurred technology innovations, efficient feedstock and biofuel production, increased feed availability, and jobs that can’t be outsourced. I encourage all ethanol supporters to use this infographic, share it with their politicians and media members, and help us show how the RFS delivers benefits for everyone.”

The infographic cites data from the U.S. Energy Information Administration and other reliable third parties and shows key ethanol accomplishments since the RFS was enacted, including consumer savings at the pump, helping to reduce oil imports and replacing the need for 462 million barrels of imported oil, how U.S. ethanol production compares to the amount of gasoline that could be produced from the Bakken Oil Shale development or from the proposed Keystone XL Pipeline project, how much pollution is reduced by ethanol, and how E15 fuel is the most tested motor fuel on the market today.

The infographic was also part of the tools used during ACE’s Biofuels Beltway March, which received a good reception.

Learn more about why the RFs is so important and more about the Biofuels Beltway March in my interview with Brian Jennings: An American Success Story

View the ACE Biofuels Beltway March 2013 Photo Album.

ACE, Audio, Biofuels Beltway, Ethanol, RINS

Portable Biomass Plant Gaining International Interest

Joanna Schroeder

A new portable biomass power plant is gaining international interest. Recently, 30 visitors from as far away as Guatemala visited the Thomas M. Brooks Forest Products L_032813-cnre-biomassplantdemoCenter to see a demonstration of the Department of Sustainable Biomaterials‘ technology. About the size of a Mini Cooper turned upright, the biomass power system generates electricity by burning wood chips, corncobs, manure, and other agricultural wastes. In demonstrations, Henry Quesada-Pineda, assistant professor of sustainable biomaterials in the College of Natural Resources and Environment, powered shop tools with the unit.

“There is increasing interest in the community and around the world, especially in off-grid situations, to learn more about how biomass energy production can be integrated into small-scale systems,” said Quesada-Pineda, a Virginia Cooperative Extension specialist who is also assistant director of Virginia Tech’s Center for Forest Products Business, as he fielded questions from international development consultants and forest-products industry managers during the demonstration.

The unit’s generator is powered by a three-cylinder combustion engine using syngas — a combination of nitrogen, carbon monoxide, and hydrogen produced by biomass reacting with steam at temperatures over 750 C. Virginia Tech’s unit, which produces 1 kilowatt hour for every 1.2 kilograms of biomass, is capable of generating 10 kilowatts, enough to power 100 100-watt light bulbs.

This gasification process itself has been in use for years, Quesada-Pineda says. It was used in the mid-1800s to produce gas for streetlights and cooking, before being replaced by natural gas. Wood gasifiers powered thousands of European motor vehicles during World War II fuel shortages. Today, biomass power plants represent the nation’s second largest source of renewable energy in terms of capacity, after hydroelectric.

The unit costs around $18,000, and so is not a cost-effective investment for most U.S. companies with access to electricity, Quesada-Pineda says, but his department’s research will seek to determine the optimal use for this renewable energy source. In addition to research, the biomass power unit will be used to support teaching efforts, giving students the opportunity to familiarize themselves with this emerging technology, and to power entrepreneurial projects of the department’s student-run Wood Enterprise Institute.

biomass

RIN Study Counters “Hyperbole”

Joanna Schroeder

According to new analysis conducted by Informa Economics, Inc., ethanol costs significantly less than gasoline at the wholesale level and is reducing pump prices for consumers across the country. The report demonstrates that the Renewable Fuel Standard (RFS) and its associated “RIN” credits, have not been a factor in this spring’s higher retail gasoline prices. A RIN is a Renewable Identification Number that is used to track the use of biofuels by obligated parties.

“A fact-based review of developments in the gasoline, ethanol and RIN markets indicates that the Renewable Fuel Standard in general and RINs in particular have not been a demonstrable factor in the rise in retail gasoline prices that has occurred in early 2013,” the report concluded.

gas prices march 2013Responding to the independent study’s findings, Renewable Fuels Association (RFA) President and CEO Bob Dinneen said, “Not surprisingly, opponents of the RFS have absurdly suggested RINs are a reason for this spring’s higher gas prices. This report puts that silly notion to rest and clearly confirms that RINs are not having any noticeable impact on gasoline prices. In fact, as the Informa analysis plainly shows, increased ethanol use leads to lower—not higher—prices at the pump for American consumers. The facts and data speak for themselves. Drivers could realize even greater savings at the pump if refiners and blenders would break down their self-inflected blend wall and give up their stubborn resistance to offering E15 and E85.”

The analysis, commissioned by RFA, found RINs are likely contributing no more than $0.004 (four-tenths of one cent) to the retail price of a gallon of gasoline. Meanwhile, ethanol’s wholesale discount to gasoline in 2013 has reduced the pump price for blended gasoline by an average of $0.044 per gallon. Thus, when the net impact of both RIN costs and ethanol’s discount to gasoline are considered, ethanol-blended gasoline is saving consumers an average of $0.04 per gallon based on straight blending economics.

“Considering both the ethanol price advantage and the direct cost of RIN prices, the net benefit to consumers from the usage of ethanol is $0.04 per gallon of gasoline…” the report found. According to the authors, this savings doesn’t take into account either the indirect benefit that ethanol has on gasoline prices by effectively lowering demand for crude oil and clear gasoline or the enhanced octane value of ethanol over gasoline.

High gasoline prices in early 2013 can be explained by several factors unrelated to the RFS, RINs, or ethanol use, the report found. “There is a distinct seasonal pattern to gasoline prices and crack spreads,” the analysis notes, adding that “[t]he increase in gasoline prices and crack spreads during the first quarter of 2013 has been generally consistent with increases experienced in 2011 and 2012, despite the fact that conventional ethanol RIN prices averaged $0.03 during the first quarter of 2011 and $0.02 during the first quarter of 2012.” Citing a Department of Energy analysis, the Informa report also notes that higher gasoline prices have stemmed from planned and unplanned refinery maintenance; the low starting level for gasoline crack spreads going into 2013; preparation for seasonal fuel specification changes; and developments in global product demand.

The report was discussed during a media teleconference call that you can listen to here: rfa-rinteleconference-13.mp3

Audio, Ethanol, RFA, RINS

Florida House Committee Passes FL RFS Repeal Bill

Chuck Zimmerman

Florida House of RepresentativesYesterday I traveled to Tallahassee, Florida to testify at a hearing of the Florida House of Representatives Regulatory Affairs Committee on HB 4001 which is a bill to repeal the Florida Renewable Fuel Standard. This hearing was actually an extension of one held previously that ran out of time to conclude. You can watch the session here. The portion on HB 4001 starts about 39 minutes in and you can easily fast forward to it.

When you see the bill sponsor, Representative Matt Gaetz, introduce the session you’ll understand my compulsion to attend to try to help clear up the numerous things he said about ethanol that are just plain wrong. These include the now completely dis-credited food vs. fuel debate, that it harms automobile engines, that it is bad for the environment, etc. It’s all out of the play book of large oil companies and large food company interests. I was not alone in opposition to this bill. Some of the others testifying in opposition included Bradley Krohn, President, United States EnviroFuels, LLC and Bobby Likis, Bobby Likis Car Clinic. There were a number of others that you’ll see in the video recording.

Unfortunately, the bill passed by a narrow margin. A companion bill is in the Florida Senate, SB 320. After the session I spoke with both Bradley and Bobby to get their thoughts on the action taken by this committee.

Bradley says his company has been developing a 30 million gallon advanced ethanol plant project which will use sugar cane and sweet sorghum as primary feedstocks. They are very close to construction. He says the House committee got it wrong, buying into a lot of myths about ethanol. This sends a chilling effect to the financial community for investing in advanced biofuel projects in the state of Florida. His company is in the process still of funding their project. He says it sends a message that Florida doesn’t care about economic stimulus and job creation. There was an attempt to pass this bill last year that stalled on the Senate side and he hopes that will happen again this year.

Listen to my interview with Bradley Krohn here: Interview with Bradley Krohn

Bobby Likis also testified and corrected a number of factual errors that were presented to the committee, especially on how ethanol performs in an engine. He was very disappointed by the committee vote in the face of overwhelming evidence that the Florida RFS is working and reducing the cost of gas to Floridians. He says it will make him fight harder to make sure the bill doesn’t pass at the Senate. He says that if it does pass and the price of gas goes up in Florida we should call it a Gaetz Tax!

Listen to my interview with Bobby Likis here: Interview with Bobby Likis

Audio, Ethanol, Ethanol News, Government

UCSB Hosting Summit on Energy Efficiency

Joanna Schroeder

UC Santa Barbara’s Institute for Energy Efficiency is hosting the 2013 Summit on Energy Efficiency on May 1-2, 2013. The forum will focus on the latest innovations in materials science and technology for energy generation, energy storage, lighting, and electronics. The event is designed to provide dialogue about how advancements in materials science and technology can meet future energy needs through efficiency improvements.

Screen Shot 2013-03-28 at 11.40.00 AM“We are all aware of the energy crisis that we as a society are facing. The goal of the Summit is to gather experts and policy leaders, discuss the latest science and technology for energy efficiency and renewable energy, and to stimulate everyone to think in new ways,” said Dr. John Bowers, Director of the Institute for Energy Efficiency.

This year’s summit, held at The Fess Parker Resort in Santa Barbara, is attracting high-profile panelists who are leading major research and development efforts in energy efficiency and materials science. This year’s Summit program emphasizes the theme of “Materials for a Sustainable Energy Future,” featuring an opening keynote on materials science innovations by Steven Chu, outgoing U.S. Secretary of Energy. Featured keynote speakers also include: Michael McQuade of United Technologies Corporation; George Crabtree, Director of the newly established DOE Battery Hub at Argonne National Laboratory; and Kateri Callahan President of the Alliance to Save Energy.

Guest panelists from Soraa, Cree, Intel, Ciena, Pellion Technologies, Southern California Edison, PG&E, U.S. Department of Energy, Ames Research Laboratory, MIT, Yale, and UC Santa Barbara will lead discussions on the following topics: Materials for Energy Technology; Innovations in Solid-State Lighting; Information and Communications Technology; Electrochemical Energy Storage Technology; Utilities discussion on Energy Efficiency; and High Efficiency Power Electronics.

Click here to register and for more information.

Education, energy efficiency, Environment

Mascoma Drops IPO

Joanna Schroeder

mascoma logoAccording to several sources, Mascoma Corporation has withdrawn its registration for its planned initial public offering (IPO). The company had hoped to raise as much as $100 million through the offering. The biofuel company has been focused on developing enzymes for breakdown of sugars in the cellulosic ethanol production process.

In a filing, the company said it had determined not to proceed at this time with the offering due to market conditions. Mascoma is the fourth biofuel company to cancel or delay IPO’s since last year. Enerkem Inc. canceled its planned IPO in April, followed by Fulcrum BioEnergy Inc. in November, and Coskata Inc. shelved its deal in July.

advanced biofuels, Cellulosic, Ethanol

Renewable Fuel Standard Working for Most

Talia Goes

Our latest ZimmPoll asked the question, “Do you support continuing the Renewable Fuel Standard (RFS)?”

Our poll results: Fifty-seven percent say Yes, It’s Working, Twenty-nine percent say No, It’s Not Working, twelve percent ask What is the RFS?, and a small portion at two percent say Other. Over half of you support the continuation of the Renewable Fuel Standard. For those who ask what is the RFS? The Renewable Fuel Standard (RFS) program regulations were developed by EPA in collaboration with refiners, renewable fuel producers, and many other stakeholders. The RFS program requires 36 billion gallons of renewable- fuel to be blended into gasoline by 2022.

Untitled

Our new ZimmPoll is now live and asks the question, “Has winter weather affected drought conditions in your area?” Drought conditions coupled with below average snowfall is resulting in low topsoil moisture. Do you think this will impact the 2013 growing season? Let us know.

ZimmPoll is sponsored by New Holland Agriculture.

New Holland, ZimmPoll