Europe Urged to Re-reconsider Biofuels Policy

John Davis

eu-flagIt wasn’t that long ago that Europe was a champion of biofuels, in particular, biodiesel, as just a few years ago the continent adopted a policy of having 10 percent of transportation fuels come from renewable sources, including biofuels. This boosted biodiesel demand, coupled with favorable tax laws and the popularity of diesel vehicles. This piece in Public Service Europe says that when cheaper imported vegetable oils replaced European biofuels crops, there was pushback that was unfounded and really amounted to trade protections for Europeans, and now the continent is moving to a 5 percent usage level … basically where it stands today. But the article says it’s not too late for Europe to re-reconsider its biofuels policy:

Therefore, with this cap, the EU endangers – or reinterprets – its own 10 per cent target leaving the status quo, conventional oil, as the biggest winner. And it strikes a blow to equity and development. Shall we continue to import oil from rich countries so they can become richer rather than taking the opportunity to import biofuels from poor countries? Wild, rapid policy shifts like this have costs. They disrupt markets, stifle innovation and undermine the EU’s credibility.Read More

advanced biofuels, Biodiesel, biofuels, Ethanol, Government, International, News, Opinion

ISU Seeks Input on DDGs

Joanna Schroeder

cattle eating distillers grainsIowa State University is conducting a survey of livestock producers use of feed-related co-products from ethanol production (distillers grains). The survey is focused on the beef, dairy, swine and poultry sectors. It is being funded by a coalition consisting of the Renewable Fuels Association, the Distillers Grains Technology Council and the Corn Utilization Councils from Iowa, Illinois and Nebraska.

“The feedback gained from the survey will be used to help improve co-product quality, which can help livestock producers with their feed costs and livestock performance,” said Kurt Rosentrater, a professor of agricultural and biosystems engineering, who is leading the effort.

Livestock producers are invited to take the survey online until June 19, 2013.

Agribusiness, Distillers Grains, Ethanol

CEC Debuts First Community-Owned Solar Project

Joanna Schroeder

The Clean Energy Collective (CEC) has cut the ribbon on the first community-owned solar array resulting from the Community Solar Garden Act. The 2010 Colorado legislation was sponsored by Representative Clair Levy as a means to encourage locally-produced clean energy.

DCIM100SPORTThe Boulder Cowdery Meadows Solar Array was built on 3.5 acres of land located in South Boulder County and the 500kWh array will produce an estimated 830,000 kWh of power each year. The energy produced is being delivered to participating commercial and residential customers in Xcel Energy’s territory. The Boulder Cowdery Meadows Solar Array is the first community-owned project in Xcel Energy’s Solar Rewards program, and the state’s first solar array through an Investor Owned Utility (IOU).

“We are particularly excited to be celebrating the grand opening of the Boulder facility,” said CEC founder and Paul Spencer. “This is a significant milestone for Colorado, for Representative Levy, and for the long-term viability of our clean energy future through community solar.”

CEC’s community-owned solar model allows 100 percent of a utility’s ratepayers, including businesses, renters, those with shaded properties, and people of all income levels, the opportunity to own clean, locally-produced energy. Members receive all of the same rebates and incentives of home-sited systems, and receive credit for the power produced directly on their monthly electric bills. Customers can purchase as little as one 1 kilowatt in the Boulder Cowdery Meadows Solar Array or enough fully offsetting their electricity usage.

CEC is also devoting 5 percent of the power produced by the more than 2,000 solar panels, or about 25 kW, to low-income residents through a unique partnership with Boulder Housing Partners, off-setting the electric bills for about 15 families living in BHP apartments.

Alternative energy, Electricity, Energy, Solar

ACE: RFS is Catalyst for Innovation

Joanna Schroeder

The House Energy and Commerce Committee on the Renewable Fuel Standard (RFS) recently released a second white paper, “Agricultural Sector Impacts,” in an effort to make decisions on the future of the RFS. Comments were due today and in response, Brian Jennings, Executive Vice President for the American Coalition for Ethanol (ACE) notes that the RFS is a catalyst for agricultural innovation worldwide.

Regarding the RFS and U.S. agriculture: “The RFS provides an economic incentive for scientists and technology firms to help farmers sustainably produce significantly more bushels of corn on an acre of existing cropland. Since the RFS was enacted in 2005, these advancements, such as new seed varieties and more ACElogosustainable tillage practices, have enabled U.S. farmers to produce, on average, nearly 20 additional bushels of corn per acre than before.  Still more innovations, like drought-tolerant genes, are being developed to improve corn yield further.  The 2012 drought-ravaged corn crop was twice as large as the drought-ravaged crop of 1988 and three-times larger than the U.S. corn crop 50 years ago.  None of this progress would have been possible without the RFS.”

Regarding the RFS and global agriculture: “From 2000 to 2011, a timeframe which includes when the idea for the RFS was developed by ACE, when it was enacted by Congress, and implemented by EPA, world corn production rose 12 billion bushels as 43 nations, mostly in Africa and the former Soviet Republic, doubled their production of corn. Repealing the RFS would simply discourage farmers around the world from planting corn, which runs contrary to what the meat and livestock groups supporting repeal want.”

Regarding the RFS and food prices: “Despite the hysteria created by oil companies who oppose the RFS because it enables renewable fuel to compete for market share with petroleum, and food manufacturers who oppose the RFS because they feel entitled to cheap corn forever, the facts indicate virtually no correlation between the RFS or prices farmers receive for corn and retail food prices.  When we pay $1 for groceries, about 14 cents goes to the farmer. About 35 cents of that dollar pays for the energy to make, transport, process, and preserve the food we buy. When oil prices rise, so do food prices. If policymakers genuinely want to reduce food prices, they should support the RFS because it replaces petroleum with renewable fuel.”

“Special interests who profited handsomely in the past from corn prices that averaged $2 per bushel and who are today heavily lobbying the Congress to repeal the RFS, profited on the backs of American taxpayers who were paying for multi-billion dollar commodity support programs under previous farm bills,” added Jennings. “With global oil demand on the rise and global oil prices at a new equilibrium, it is highly unlikely those special interests who feel entitled to cheap corn forever will get their wish.”

ACE, biofuels, RFS

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