Abengoa to Construct Cogeneration Plant in Texas

Joanna Schroeder

Abengoa has been selected by Rentech Nitrogen Partners, L.P.to construct a cogeneration plant in Texas. The project will require an investment of approximately abengoa-logoUS$30 million and will create approximately 50 construction jobs. Abengoa will carry out the engineering, design and construction of the cogeneration plant under a lump sum turnkey contract (EPC) over 18 months.

The cogeneration plant is expected to generate 15 megawatts (MW) of electricity, a portion of which is intended to operate Rentech Nitrogen’s fertilizer plant in Pasadena, Texas. The cogeneration plant will use surplus steam from Rentech Nitrogen’s sulfuric acid plant to power the generator. The company plans to sell excess power produced by the cogeneration plant in the Texas electricity market.

Electricity, Energy

Jobe Defends Biodiesel in Wall Street Journal

John Davis

Joe Jobe1The head of the National Biodiesel Board is making his case in defense of the green fuel. NBB CEO Joe Jobe recently responded in the Wall Street Journal to a previous article that tried to claim advanced biofuels aren’t being produced on a commercial scale:

Biodiesel is an EPA-designated advanced biofuel that’s made from an array of resources including waste fats and greases and agricultural oils. For the past two years, our industry has exceeded national targets and produced more than one billion gallons annually of clean, renewable fuel.

With production plants in nearly every state, the industry’s success is creating thousands of jobs in communities across the country. Furthermore, biodiesel often saves consumers money. This week, Navy Secretary Ray Mabus testified on Capitol Hill about one Naval facility saving 13 cents a gallon by purchasing 20% biodiesel blends for its heating oil, for a total reduction of some $30,000 for the winter.

Most importantly, however, the Renewable Fuel Standard is good policy because it is working to address the fact that our transportation fuel supply, which drives our economy, is reliant on a single source.

Jobe goes on to say that the price of petroleum is not based on supply and demand factors in the U.S., but on economic and political factors in “unstable and hostile regions of the world.” And he says this will continue, even if there is more domestic production of petroleum. He adds that diversifying into renewable fuels, such as biodiesel, will break the addiction and risk of having petroleum as a single transportation fuel source.

advanced biofuels, Biodiesel, NBB, Opinion

Calif. Biodiesel Maker First to Earn BQ9000 Lab Cert.

John Davis

BQ9000labA California-based biodiesel maker is the first producer in the country to earn the BQ9000 Laboratory certification. This company news release from Community Fuels says they received the designation to go along with their earlier BQ9000 Producer certification:

“We are serious about quality and believe that biodiesel with reliable and predictable fuel performance is necessary for our industry to grow and prosper. Our extensive in-house laboratory, highly skilled personnel and analytic capabilities set us apart from others.” said Christopher Young, Director of Operations for Community Fuels.

This certification also is expected to expand Community Fuels offerings which now include third party biodiesel testing for fuel produced by others. “Unlike other laboratories that perform a broad range of services, we specialize in testing and evaluating feedstock and biodiesel. This makes our laboratory a perfect choice for other producers, many of which do not have in-house capabilities to test and certify their fuel.” said Mr. Young.

You can read more about the BQ9000 Laboratory certification here.

Biodiesel

DF Cast: Oil Vs. Biofuels – Can’t We All Just Get Along?

John Davis

It seems like they’re natural enemies – biofuels producers, particularly biodiesel and ethanol, versus Big Oil, as each competes for a place in the gas tanks of vehicles in America and around the world. But does there really need to be such enmity between the two, with biofuels producers accusing oil companies of trying to derail increased ethanol and biodiesel levels in transportation fuels and Big Oil saying don’t blame us?

In this edition of the Domestic Fuel Cast, listen as we talk to stakeholders on both sides of the game, as well as those who point out that everyone is in the same game: providing energy.

You can listen to the Domestic Fuel Cast here: Domestic Fuel Cast - Oil Vs. Biofuels - Can't We All Just Get Along?

You can also subscribe to the DomesticFuel Cast here.

Audio, Biodiesel, biofuels, Domestic Fuel Cast, Ethanol

FREIF Adds Two Mexican Wind Farms to Portfolio

Joanna Schroeder

The First Reserve Energy Infrastructure Fund (FREIF I) of First Reserve and Renovalia Energy have announced the expansion of their Renovalia Reserve joint venture with the addition of two wind power plants in Southern Mexico. The investments diversify the Renovalia Reserve portfolio beyond Europe into North America and nearly double the power capacity of the wind farm assets worldwide. Financial details of the transaction were not disclosed.

laventosax Photo Luis Cruz Hernandez with the AP“Adding wind power plants in Mexico to Renovalia Reserve’s portfolio is a natural extension of the company’s strategy,” said John Barry, Managing Director of First Reserve and member of the Board of Directors of Renovalia Reserve. “Growth in electricity demand is expected to continue to trend upward based on the pace of population and industrial and manufacturing growth, and the legal and regulatory framework signals stability and predictability of renewable energy policies for the region.”

Barry continued, “These conditions provide a fertile environment against which we can apply our growth equity capital and strong operational model to provide predictable EBITDA and cash flow over the long term, with the principal short term variability being wind resource.”

The first 90 Megawatt (MW) farm in Mexico has been operational since June 2012.  The second 137.5 MW farm is under construction and expected to be fully operational in early 2014.  The 228 MW of the combined farms is estimated to be enough to power between 287,000 – 359,000 Mexican households annually.

Jaime Galobart CEO of Renovalia Energy and Director of Renovalia Reserve noted that Renovalia has been present in Mexico since 2007 through its affiliate Demex. Galobart said the development of 228MWs of Mexican wind assets reflects the successful implementation of our international asset diversification strategy in countries with superior growth in GDP (Gross Domestic Product) and energy consumption, outstanding wind resource, and solid legal and political frameworks, such as Mexico.

“We are very impressed by the commitment shown by the Mexican Authorities in promoting the development of clean and competitive renewable energy,” he added. “We are delighted to continue sharing our expansion plans with such a solid partner as First Reserve.”

Alternative energy, Electricity, Energy, International, Wind

Brazil’s GranBio Open US Operations

Joanna Schroeder

Brazil-based GranBio has announced plans to expand to the U.S. with an office in San Francisco and has name Vonnie Estes as the managing director. In this new role, Ms. Estes will lead GranBio’s efforts to access new technologies and establish key public and private collaborations for the company’s continued global expansion in advanced biorefinery development.

Screen Shot 2013-04-26 at 10.13.42 AMMs. Estes joins GranBio from Codexis, a developer of engineered enzymes for pharmaceutical, biofuel and chemical production, where she most recently was Vice President of Corporate Development. Prior to Codexis, she was the Chief Commercial Officer at DuPont Danisco Cellulosic Ethanol (DDCE)as Executive Vice President, Business Development. Prior to joining DDCE, she led DuPont’s commercialization program for cellulosic ethanol. Her multifunctional team was responsible for the $140 million joint venture between DuPont and Danisco.

“GranBio intends to expand its profile in North America and our new office in the United States will allow us to build a team and execute our strategy,” said Alan Hiltner, Executive Vice President, GranBio. “We are extremely pleased that Ms. Estes will lead our effort. Her track record of success at large, established multi-national and early stage start-up companies is the mark of a true entrepreneurial spirit and savvy industry trendsetter. These are exactly the qualities we want to be known for as GranBio begins its strategic global expansion.”

In April, GranBio completed the acquisition of a 25 percent equity investment in the North American Cleantech pioneer American Process Inc. (API). Under the agreement, GranBio will have access to a proprietary biomass pretreatment platform that makes it possible to cost-effectively develop cellulosic sugars as a feedstock for conversion to a variety of biochemicals and biofuels.

advanced biofuels, Brazil, Company Announcement

SeQuential-Pacific Biodiesel Works with Seattle Bigwigs

John Davis

sequentialpacificSeQuential-Pacific Biodiesel is teaming up with some pretty prominent companies in the Seattle area to turn used cooking oil into biodiesel. This column by the company in Biodiesel Magazine says it partnered with CenturyLink Field, Pike Place Market, Safeco Field, Taco Time Corp. and the University of Washington to create a closed-loop production cycle:

In 2012, SeQuential-Pacific recycled enough oil from Washington businesses to produce 1.48 million gallons of biodiesel and offset more than 10 million pounds of carbon. These partnerships also have tangible economic benefits. Restaurants working with SeQuential-Pacific are eligible for financial rebates for their used cooking oil. In addition, biodiesel made by SeQuential-Pacific is sold to commercial and retail fuel distributors throughout the state.

“Partnering with SeQuential-Pacific Biodiesel was a natural fit for Taco Time,” said Colin Ury, Vice President, Business Affairs, Taco Time Northwest. “We have a company-wide commitment to supporting local sustainability efforts, and we love that our waste oil gets recycled into a locally made eco-conscious product that can be purchased right here in our own community.”

Founded in 2005, Sequential-Pacific Biodiesel is the longest running commercial biodiesel producer in the Pacific Northwest, recycling cooking oil collected from local restaurants, businesses, hospitals and schools.

Biodiesel

CME to Offer Biodiesel, Ethanol RIN Futures Contracts

John Davis

CMEGroupTrader CME Group will be offering nine new futures contracts for Renewable Identification Numbers (RINs) for biodiesel and ethanol, among other renewables. This company news release says they’ll be listed by and subject to the rules and regulations of NYMEX.

“With the recent increase in volatility in RINs prices, we’ve seen strong interest from our customers and other market participants for cost-effective ways to manage their risk in this market,” said Gary Morsches, Managing Director Global Energy, at CME Group.

“As the most actively traded marketplace for the benchmark RBOB Gasoline and ULSD Diesel contracts, our new RINs futures contracts will be a strong complement to our existing suite of products and will allow our customers to take advantage of reduced capital requirements and margin efficiencies.”

The new RINs contracts will be available for trading starting May 13, 2013, and will allow customers to hedge risk in three types of renewable fuels:

• D4 Biodiesel

• D5 Advanced Biofuel

• D6 Ethanol

They’ll be settled based on Argus Media’s prices for RINs and are touted as a useful hedge for the price risk associated with the Renewable Fuel Standard (RFS2).

Biodiesel, Ethanol, RFS, RINS

Bioenergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFWorld Energy Solutions, Inc. has named Martha Danly as its Chief Operating Officer, promoting her from Chief Product Officer. As COO, Danly will oversee company-wide operations, product strategy, product marketing, software development, IT and the ongoing delivery of the Company’s signature online energy platform, the World Energy Exchange.
  • Mounting Systems has introduced the ground mount system Sigma II GO Kits – the pre-packaged versions of its Sigma II open terrain photovoltaic substructure. With an inclination angle of 25 degrees, the Sigma II GO Kits arrive with a Professional Engineer (PE) certification and are ready to be installed on ballast blocks or concrete piers, and configurations and are designed to accept all 60-cell, crystalline modules.
  • @RealGoodSolar and Smart Energy Capital are installing solar power systems at Stockton Unified School District buildings. The 5.1 megawatt combined systems are expected to save the school district nearly $600,000 in energy costs during the first year.
  • American Wind Energy Association (AWEA) has appointed Tom Kiernan as the new Chief Executive Officer. He officially takes the helm on May 28, 2012.
  • Legislative Bill 104 is sweeping through the Nebraska, Legislature, a bill if passed, would provide more than $300 million in tax breaks for the wind energy industry. Similar tax breaks are offered to wind companies in Iowa, Kansas and Oklahoma.
Read more here: http://www.sacbee.com/2013/04/25/5371011/american-wind-energy-association.html#storylink=cpy
Bioenergy Bytes

Florida Axes State Renewable Fuel Standard

Joanna Schroeder

gregeversEarlier this week, the Florida Legislature passed HB4001, a bill that repeals the state Renewable Fuel Standard (RFS). Senator Greg Evers was a huge supporter of the bill, that allows Florida consumers the ability to purchase gasoline that is ethanol free.

In a statement, Evers said, “The bill eliminates the unnecessary power of the government to force Florida citizens to buy and sell ethanol blended gasoline. It returns that power to the people and restores the power of the free market by giving consumers and retailers a choice regarding what fuel they wish to buy.”

The Renewable Fuels Association (RFA) and Growth Energy responded to the news in a joint statement:

“Today’s Senate vote was a pyrrhic victory for ethanol detractors. It substantively changes nothing because the state mandate was redundant. The federal Renewable Fuel Standard will still apply and, thankfully for consumers who will continue to see savings at the pump, ethanol and other renewable fuels will be sold in Florida.

All this bill has done is put politics and oil industry profits ahead of economic opportunity and jobs in the state. The only result of this legislation will be a loss of jobs and economic opportunity in Florida. Florida has made it clear — biofuels and the valuable jobs that are created in the renewable fuels industry are no longer welcome in Florida.”

biofuels, Ethanol, Growth Energy, RFA