NEC 2027

Farm Broadcasters in Nation’s Capitol

Cindy Zimmerman

NAFB Washington WatchIt’s time for National Association of Farm Broadcasting members to gather in Washington, DC for their annual Washington Watch program.

Activities this afternoon with the Issues Forum, sponsored by the Renewable Fuels Association. Among the topics sure to be discussed will be what a new farm bill may hold for renewable energy and the latest on attacks to the Renewable Fuel Standard (RFS).

Tomorrow morning the farm broadcasters meet up at USDA and will be speaking with a number of department heads including Secretary of Agriculture Tom Vilsack. It looks like Wednesday morning will be all about the Farm Bill with input from various members of the Senate and House where their versions of the new legislation are going through mark ups this week.

Ethanol, Ethanol News, farm bill, RFA, RFS

RINs Could Be Key to Aviation Biofuels Viability

John Davis

epa-logoThe Environmental Protection Agency’s (EPA) decision that makes aviation biofuel, better known as biojet, eligible for Renewable Identification Numbers (RINs) could make those green fuels viable for the aviation industry. This piece from Platts says the aviation industry could qualify for D4 biodiesel, D5 advanced biofuel or D7 cellulosic diesel RINs, despite jet fuel being exempt from RINs obligations.

“The availability of RINs is a critical bridge to commercial viability,” Nancy Young, vice president of environmental affairs for US airline trade group Airlines for America, said in a recent interview.

“It means there is an economic value assigned to the renewable content in jet fuel that can help the producer of that fuel get closer to the price of traditional jet fuel,” Young said…

But with supplies of biojet still extremely limited, most industry goals are still modest. Airplane manufacturer Boeing, for instance, wants biojet to account for 1% of the industry’s 600 million gallons/year of jet fuel consumption by 2015.

The aviation industry, biofuels producers and the federal government have been investing in research to bring down the cost of making biojet, as well as financing more refineries.

Brooke Coleman, executive director of the Advanced Ethanol Council, said RINs are key to that.

“What the RIN value does is it creates an incentive to buy and trade this fuel,” he said. “The whole reason we need the RFS is because we can show up with a cheaper better fuel, but it doesn’t necessarily get it into the marketplace because it’s so vertically integrated. RINs make sure the renewable fuel is used in an economically efficient way.”

The article goes on to say that the increasing costs of biodiesel RINs could end up causing trouble for biojet.

aviation biofuels, biofuels, biojet fuel, RINS

Idled Louisiana Renewable Diesel Plant Could Be Re-Opened

John Davis

DynamicFuels3The Dynamic Fuels renewable diesel plant in Geismar, La., idled late last year, soon could be reopened. Biomass Magazine reports that Syntroleum, which has the animal fat and yellow grease renewable diesel plant as a joint venture with Tyson Foods, expects to start up operations once again this summer:

During the call, Gary Roth, president and CEO of Syntroleum, said the company ordered a new catalyst for the plant in February. It is scheduled to for delivery in late June. According to Roth, the new catalyst is expected to increase yields from an average of 80 percent to an average of 88 percent. As a result of the new catalyst, Roth said revenues per gallon would be expected increase from $4.09 to $4.55 per gallon, which would result in a $13 million revenue increase.

Rather than interrupting the feedstock chain of the plant while it is operating, Roth said the company believes it will be better to defer operations until the new catalyst is installed.

Syntroleum officials say the expected stability in D4 biomass-based diesel Renewable Identification Numbers (RINs) through this year and 2014 should help the company’s bottom line. The retroactive reinstatement of the biodiesel tax credit also helped profit margins to make the plant viable once again.

biomass

GE to Supply New Turbines for Michigan Wind Farm

John Davis

GE wind turbine1GE will be rolling out a new wind turbine for a wind farm in Michigan. This company news release says GE will supply 59 of the 1.7-100 brilliant wind turbine, the world’s most efficient wind turbine in its class, for the NextEra Energy Resources, LLC’s wind farm in the thumb region of Michigan.

The 1.7-100 machine is the second brilliant wind turbine in GE’s portfolio. GE’s brilliant wind turbines harness the power of the Industrial Internet to analyze tens of thousands of data points every second, helping to manage wind’s variability and provide smooth, predictable power. In addition to the brilliant features, GE’s new 1.7-100 meter wind turbine advances its 1.6-100 wind turbine series by utilizing electrical system upgrades to allow higher energy productions.

“GE is a trusted partner and a leader in wind turbine technology and innovation. Wind turbine innovation is key to the continued growth of the wind industry and we look forward to installing this new 1.7-megawatt technology machine,” said Armando Pimentel, president and CEO of NextEra Energy Resources.

The turbine’s blades will measure 100 meters in height. GE says the turbines are its highest capacity ones and the flagship products in its portfolio.

Wind

MLP Parity Could Boost Renewable Energy Projects

Cindy Zimmerman

Legislation has been re-introduced in Congress that would give investors in renewable energy projects access to a corporate structure currently only available for fossil fuel-based energy projects.

coonsThe Master Limited Partnerships (MLP) Parity Act modifies the federal tax code by helping additional energy-generation and renewable fuels companies form master limited partnerships, which combine the funding advantages of corporations and the tax advantages of partnerships.

“The bipartisan Master Limited Partnerships Parity Act levels the playing field to help clean and renewable energy projects compete fairly with traditional energy projects,” said bill co-sponsor Senator Chris Coons (D-Del.), a member of the Senate Energy and Natural Resources Committee. “This market-driven solution supports the all-of-the-above energy strategy we need to power our country for generations to come.”

In addition to Coons, the Senate bill is co-sponsored by Senators Jerry Moran (R-Kan.), Debbie Stabenow (D-Mich.) and Lisa Murkowski (R-Alaska). The MLP Parity Act was also introduced in the House on Wednesday by Reps. Ted Poe (R-TX-02), Mike Thompson (D-CA-05), Peter Welch (D-VT-AL) and Chris Gibson (R-NY-19).

faegrebdAccording to FaegreBD Consulting, an MLP is a publicly traded partnership that is largely measured by the predictability and sustainability of its cash flow. As a partnership, the MLP is not subject to taxation at the MLP or corporate level, but instead is taxed as a pass-through entity. As such, MLP cash flows are enhanced, and tax savings from this single level of taxation contribute to a cost of capital advantage over competitors organized or taxed as a corporation. In the late 1980’s, legislation was passed restricting the use of MLPs to the energy and natural resource industry, excluding renewable sources of energy. As a result, MLPs have been largely limited to the ownership and operation of midstream oil and gas assets such as pipelines and storage terminals, and more recently the exploration and production of oil, gas and coal.

Energy, Government, Renewable Energy, Solar, Wind

Sixth E15 Station Opens in Iowa

Cindy Zimmerman

IowaRFAlogoThe Iowa Renewable Fuels Association reports that Sperry One Stop in Coon Rapids is the sixth Iowa retailer to offer 15% ethanol as a registered fuel for all 2001 and newer passenger vehicles and all flexible fuel vehicles (FFVs).

“This is a new station and we want to be offering the fuels of the future, and that’s cleaner-burning, American made E15,” stated Sperry One Stop Owner Kurt Sperry. “With the POET-Coon Rapids plant nearby, there’s a strong renewable fuels presence here in Coon Rapids, so offering a fuel like E15 just made sense.”

“The citizens of Coon Rapids will really benefit from renewable, less expensive options at the pump like E15,” said IRFA Managing Director Lucy Norton. “This station is offering a variety of ethanol blends as well as biodiesel, and we see that as a win for the consumer and a win for the local economy.”

Retailers interested in installing a blender pump to offer E15, E85, and other ethanol blends can apply for a grant from the Iowa Department of Agriculture. The IRFA provides assistance in the application process. For more information, please visit: http://www.iowaagriculture.gov/agMarketing/IRFIP.asp.

E15, Ethanol, Ethanol News, Iowa RFA

U of Maine Unveils Floating VolturnUS Wind Turbine

John Davis

VolturnUSA new floating wind turbine is making its debut. The Bangor (ME) Daily News reports the University of Maine unveiled the VolturnUS, a one-of-a-kind offshore wind turbine:

VolturnUS will be the first grid-connected floating wind turbine in North America and the first concrete-composite floating turbine in the world, according to Habib Dagher, director of the UMaine Advanced Structures and Composites Center.

“The goal is to be the first to do it and to do it right,” Dagher said Wednesday during an event at the university’s Offshore Wind Laboratory at the composites center.

The 65-foot-tall turbine prototype is a one-eighth-scale version of the huge 6-megawatt turbines that would create a 5-gigawatt farm 20 miles off Maine’s coastline by 2030. About 170 turbines, each taller than the Washington Monument, would create the 5 gigawatts of energy, which is equivalent to the energy output of five nuclear power plants. Officials estimate that project could bring $20 billion of private investment to the state and create thousands of jobs.

Officials say, when complete, the wind farm will be able to produce electricity for about 10 cents per kilowatt hour by 2020. The first full-scale turbine with blades bigger than a 747’s wingspan is scheduled to go into the water in 2016.

Wind

Sanimax Building Capacity at Wisconsin Biodiesel Plant

John Davis

sanimaxRenderer-turned-biodiesel-maker Sanimax increases capacity at its 20 MMgy biodiesel refinery in DeForest, Wisconsin… although the company won’t say by how much. This Biodiesel Magazine article says Apache Stainless Equipment Corp. will provide the stainless steel tanks:

Apache supported Sanimax’s need for increased capacity by supplying an atmospheric stainless tank and three pressure vessels within the past month. Sanimax would not disclose how much additional production capacity the DeForest plant was installing.

The most recent tank supplied by Apache was used for fuel storage. The tank was constructed from stainless steel with exterior insulation and aluminum cladding. The tank increased storage capacity for Sanimax by 30,000 gallons. The 132-inch diameter, 45 ft. high and 19,000 lb. atmospheric tank was API 650 rated. Apache provided in-house insulation and aluminum cladding of the tank and was shipped via Apache truck.

Apache is known in the biofuel industry for supplying many types of specialized tanks.

Biodiesel

MidAmerican to Invest $1.9 Billion in Iowa Wind Energy

John Davis

midamerican-energyMidwest-based MidAmerican Energy Co. is investing $1.9 billion in wind energy by adding up to 1,050 megawatts of wind generation, consisting of up to 656 new wind turbines, in Iowa by the end of 2015. This article from the Iowa City Press Citizen says the utility’s investment will create lots of green jobs in the state, without tapping any state tax dollars to do it:

MidAmerican Energy, a utility serving 714,000 customers in Iowa, Illinois, Nebraska and South Dakota, said the project would create 460 construction jobs over two years and 48 permanent jobs, primarily workers needed to maintain the 656 wind turbines the utility will build through 2015.

The permanent jobs will create $2.4 million annually in pay for workers, MidAmerican said. The construction workers will take home $30 million, said Lt. Gov. Kim Reynolds. “That’s over 500 Iowa residents who will bring home a paycheck to provide for their families,” she said.

The project will add 1,050 megawatts of wind generation, pushing the utility’s total to 3,335 megawatts of energy. As a result, MidAmerican expects that about 40 percent of its power to Iowa customers will come from wind.

“That is marvelous news,” said Harold Prior, executive director of the Iowa Wind Energy Association. “MidAmerican is one of the top utilities in the country as far as embracing wind energy.”

In addition, the project is expected to lower consumer’s utility bills. Officials in the Hawkeye State also believe this sends a message to the rest of the country that Iowa is innovative, especially when it comes to wind energy. The state is on track to generate 10,000 megawatts of wind power by 2020.

While MidAmerican is not getting state aid for this project, it will receive federal wind production tax credits.

Wind

Governor Corbett Commits $9.6M to Clean Energy

Joanna Schroeder

Pennsylvania Governor Tom Corbett announced a commitment of more than $9.6 million for 13 clean and alternative energy projects in 11 counties. The Commonwealth Financing Authority (CFA) has approved 13 projects, through the state’s Alternative and Clean Energy Program, including five Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) fueling stations that, the agency says, have the benefits of reducing emissions, fuel savings and utilizing the large domestic CNG Station in PA Photo: Scott Detrow / StateImpact Pennsylvaniasource of natural gas available in Pennsylvania.

“The projects supported by the CFA will help businesses and school districts save collectively on their utility costs and reduce their environmental impact,” said Corbett. “They will also result in significant private economic investment throughout the commonwealth and the creation of 25 new jobs.”

Among the approved projects includes a $250,000 Alternative and Clean Energy Program grant for PMF Industries to aid in the company’s expansion of their manufacturing plant. The project will expand their precision metal forming facility to allow for the manufacturing of CNG cylinders.

“We have an available, abundant, domestic, economical and clean-burning supply of natural gas throughout Pennsylvania that can be used in a number of ways including to fuel our vehicles,” added Corbett. “Increasing the number of natural gas filling stations in the state will grow the industry, boost our economy and result in a better environment.”

In total, 13 projects were approved in Allegheny, Beaver, Bucks, Carbon, Cumberland, Dauphin, Erie, Lackawanna, Lycoming, Montgomery and Schuylkill counties. The state investments are projected to result in more than $109 million in additional economic investments.

Alternative energy, Clean Energy, Compressed Natural Gas (CNG), Liquefied natural gas (LNG)