ACE Conference 2026

Biodiesel Tax Credit Helps to Nearly Double Output

John Davis

us-capitol-fiscal-cliff-voteBiodiesel production in the U.S. nearly doubled in January, jumping a whopping 86 percent compared to December’s output. According to this article from Platts.com, quoting the U.S. Environmental Protection Agency’s Moderated Transaction System, the industry got the boost from the renewal of the $1-a-gallon biodiesel tax credit:

After reaching its lowest output level of 2012 in December and falling for five of the last six months of the year, the January production numbers were boosted by the January 2 return of the $1/gal biodiesel blending tax credit, alongside a 10 cents/gal credit for agricultural biodiesel producers.

“Tax credit galore,” one producer source at a major Midwest biodiesel production facility said. “The production numbers show we are well ahead of the 2013 obligation. I would hope that continued production numbers can provide evidence to the EPA to increase the obligation in years to come.”

The article goes on to point out that January’s nearly 121 million gallon biodiesel production puts the country well on pace to meet the 2013 Renewable Fuels Standard-2 production target of 1.28 billion gallons.

Biodiesel, Government

Organizing Enzymes to Create Electricity

Joanna Schroeder

Ian Wheeldon, an assistant professor of chemical and environmental engineering at the University of California, Riverside’s Bourns College of Engineering, has recently received a $360,000 grant to better organize enzymes on electrodes to create nanoscale devices that more efficiently convert the chemical energy of sugars and complex Ian_Wheeldoncarbohydrates in to electricity. Wheeldon, who will receive the funding over three years, is one of 40 scientists and engineers to win an award from the Young Investigator Program run by the Air Force Office of Scientific Research.

In nature, enzymes are often in precisely organized multi-enzyme structures. Influenced by nature, spatial organization of multi-enzyme pathways has emerged as a tool in bionanotechnology, synthetic biology and, most recently, bioenergy systems. Initial experiments have shown spatial organization of enzymatic pathways has resulted in increased power density in biofuel cells. However, there is a lack of understanding of the fundamental principles that govern reaction pathway kinetics.

“This limits engineering pathways to trial-and-error approaches,” Wheeldon said. “That’s an impossible task when increasingly complex pathways are considered, such as those needed for advanced biofuel cells.”

The first objective of Wheeldon’s project is to define relationships between multi-enzyme scaffold design and pathway reaction rate. These relationships will define a set of rules that can enhance kinetics by spatial organization. The second objective is to apply the newly developed understanding of multi-enzyme pathways to create novel anodes for enzymatic biofuel cells.

Beyond biofuel cells, potential applications include new synthesis routes for pharmaceuticals, including antibiotics, and commodity chemicals, such as ethers and biofuels.

advanced biofuels, Research

Ethanol Producers Respond to Market Conditions

Cindy Zimmerman

Corn oil recovery is helping the bottom line of ethanol producers with tight margins, according to a new report from the Energy Information Administration.

eiaBeginning in summer 2012, the prices of ethanol and corn reached levels where production costs at relatively simple ethanol plants exceeded revenue. These simple plants, which are not able to recover corn oil, make up a diminishing portion of the ethanol industry. Reacting to the market conditions, several ethanol plants temporarily shut down. By January 2013, the number of idled ethanol plants had grown to at least 20.

Relatively simple ethanol plants produce ethanol and distillers grains from corn. More advanced plants are able to recover other products, like corn oil, from a portion of the distillers grains. Ethanol plants with corn oil recovery units are able to earn more revenue, so they usually have higher profit margins than plants without corn oil recovery, even if their production costs are slightly higher.

According to the EIA report, corn oil recovery is one of several strategies that the ethanol industry is developing to improve margins. “Others involve switching to processes that are more advantageous under the renewable fuels standard (RFS). For instance, Aemetis in Keyes, California, is changing its feedstock from corn to sorghum and replacing its natural gas consumption with biomass. Other companies plan to produce butanol rather than ethanol, or integrate cellulosic feedstock, such as wood waste or corn stover (e.g., leaves, stalks, and leftover cobs after the corn harvest). These approaches allow their products to qualify as advanced biofuels under the RFS, a category that specifically excludes ethanol produced from cornstarch, which has been the dominant feedstock for the U.S. ethanol industry.”

Read more here.

advanced biofuels, corn, Energy, Ethanol, Ethanol News

Corn Use for Ethanol Steady

Cindy Zimmerman

Projected 2012/13 U.S. corn ending stocks were unchanged in the World Agricultural Supply and Demand Estimate report out Friday, lowering exports but increasing feed use and keeping corn use for ethanol the same.

usda-logoProjected corn use for ethanol this season remains unchanged at 4.5 billion bushels, which is down 10 percent from last year on lower gasoline use, according to USDA Deputy Chief Economist Rob Johansson. “Obviously we expect that will increase towards the end of this year when the new crop comes in,” said Johansson.

Corn exports were lowered 75 million bushels, imports were increased 25 million, and feed usage was increased by 100 million – due in part to “continued expansion in poultry production.” The projected season-average farm price for corn was lowered by 20 cents a bushel to $6.75-7.45.

corn, Ethanol, Ethanol News, USDA

BioEnergy Bytes

Joanna Schroeder

  • The European Wind Energy Association (EWEA) has elected Andrew Garrad as its new President. Garrad joined the wind energy industry in 1979 and most recently was Chairman of GL Garrad Hassan.
  • BioEnergyBytesDFAmyris, Inc. has joined Bonsucro, the world’s leading sugarcane sustainability standard. Amyris is the first advanced biofuels and chemicals company of its kind to join Bonsucro, paving the way for certification of Amyris’s renewable products.
  • The Sacramento International Jet Center, the Sacramento County’s airport system partner for general aviation at the Sacramento International Airport, has installed a 130 kilowatt solar electric system on their state of the art hangar and office facilities. The system is comprised of 562 Conergy PM 235 watt solar modules affixed to the Jet Center rooftop using more than 5,600 feet of Conergy SunTop mounting systems.  The entire system is connected to the grid using two Solectria 60 kilowatt inverters.
  • According to data from the U.S. Energy Information Administration, wind generated electricity in2012 provided 24.5 percent of all the electricity generated in Iowa. The state was the first in the nation to exceed 20 percent of all generation from wind and generated 18.8 percent of all electricity from wind in 2011. While South Dakota was first nationally in 2011, Iowa reclaimed the number 1 spot in 2012.
  • It’s not too late to register for the 6th Annual Iowa Wind Power Conference March 25-27, 2013 at the Iowa Events Center in Des Moines, Iowa. The conference will include a brief celebration of Iowa’s wind generation accomplishment and will feature state and national leaders such as Iowa Governor Branstad, U.S. Representatives King and Loebsack, an official from the US Department of Energy, transmission project updates, new wind energy research, and more.
Bioenergy Bytes

Buis Highlights Priorities for 2013

Joanna Schroeder

During Growth Energy’s fourth Annual Executive Leadership Conference, CEO Tom Buis discussed the significant progress the industry has made despite constant attacks, the strategic goals for the upcoming year and how critics like Big Food and Big Oil are trying to kill renewable energy. He began by stressing that market access and defending the Renewable Fuel Standard (RFS) continue to be the most pressing issues moving forward in the biofuels industry.

“This week four years ago, Growth Energy officially filed the Green Jobs E15 waiver to break through the blend wall and this past year has been one of major notable accomplishments,” said Buis. “We have seen the Green Jobs Waiver successfully upheld in the courts and E15 is being sold by a number of retail stations. But make no mistake, Big Oil is actively trying to undermine the RFS and prevent E15 from entering the marketplace.”

Growth_Energy_logo-1“They are erecting as many barriers as possible,” Buis continued. “They will not give up their monopoly on the liquid fuels market quietly. But make no mistake; the leaders in this room are among the most talented and resilient. We may not have the deep pockets of Big Oil, but we have the facts and at the end of the day we are going to win this fight.”

Additionally Buis discussed the various international trade cases and how the biofuels industry will continue to fight unfair trade practices by Brazil and the European Union, stating that Growth Energy would “Explore all options and possibilities of trade challenges for those who don’t play fair.”

Buis concluded by thanking the membership of Growth Energy for their continued efforts, noting that the success achieved and the opportunities of tomorrow are all possible because of the collective work of Growth Energy’s diverse and engaged membership.

“We have weathered many challenges, and others will arise, but we must never lose sight of the important work our industry does to create jobs, improve our environment and reduce our dangerous addiction to foreign oil, all while providing consumers with a choice and savings at the pump.”

biofuels, E15, Ethanol, Growth Energy

ProCOT Launches Propane Education Campaign

Joanna Schroeder

The Propane Council of Texas (ProCOT) has launched a new campaign, Propane Autogas: Fueling Texas, to educate Texans about the benefits of running fleet vehicles and equipment on clean-burning propane autogas. The campaign officially kicked off last week during Texas Propane day, a ride and drive event at the Texas Capitol. The campaign will feature a series of statewide autogas presentations and road shows to provide fleet operators, drivers and community members a hands-on experience with clean FuelingTexas.comautogas technology.

According to ProCOT, Texas is one of the leading states in converting fleet vehicles to run on propane autogas.  The Texas Department of Transportation operates the state’s largest autogas fleet and the Dallas, Houston and Austin Independent School Districts also use propane. The fuel is widely available in Texas with more than 700 fueling stations throughout the state.

“Vehicle fleets that use autogas save an average of 30-50 percent on fuel costs compared to fleets that use gasoline or diesel,” said Jackie Mason, education and marketing director for ProCOT. “Plus, 98 percent of the U.S. propane autogas supply is made in America, and Texas is home to the world’s largest propane storage capacity. Choosing autogas contributes to a greener, stronger economy on both a national and state level.”

A new website was launched as part of the campaign, FuelingTexas.com, and will be regularly updated with news, educational resources and more. Fleet owners will find an array of information on the benefits of propane autogas, as well as available incentives, tax credits, upcoming events and details about autogas for both on-road vehicles and off-road options.

Propane

Advocates Show & Tell Ethanol’s Benefits

Joanna Schroeder

Nearly 50 advocates from around the country are flying into Washington, D.C. this week to tell lawmakers about the importance of the Renewable Fuel Standard (RFS2) and the importance of consumer choice and E15. Brian Jennings, executive vice president of the American Coalition for Ethanol (ACE) who is hosting the event, says there are nearly 100 new freshman members of Congress.

ace-beltway-13“Whether we make visits to their offices or veteran lawmakers, the fact that we need to do a better job about educating people about ethanol through telling our story but also showing our story is really important. That’s what this fly-in enables us to do,” said Jennings.

He said there is a good diversity in the mix of participants. There are several livestock producers attending who will be meeting with key legislators to talk about dried distillers grains. There are also ethanol producers along with some bankers and some enzymes companies as well.

“Ethanol isn’t some narrow, special interest program that benefits only ethanol producers,” said Jennings. “That’s what oil producers would certainly like members of Congress to think. We want to show them that main street businesses, and bankers and livestock producers and consumers all benefit in a variety of ways from ethanol and we feel we have some good ways to show and tell that story.”

The big story out of Washington this past week has been the sequestration and budget cuts and I asked Brian about the mood in DC. He noted that the RFS has delivered benefits across America without costing tax payers a single dime.

“So we’re going to capitalize on that mood in Washington which is concern about debt, concern about the budget deficit. Subsidies for ethanol ended in 2011. We are not subsidized by the government oil companies still are. We have this thing called the RFS that levels the playing field. Oh by the way we’re cheaper than gas. Oh, and did we mention we’re not subsidized? I don’t think we can say that enough.”

Jennings believes the ethanol industry has a compelling story to tell when the event begins Wednesday, March 13, 2013.

Learn more about the Biofuels Beltway March by listening to my full interview with Brian: Ethanol Advocates Show & Tell Ethanol's Benefits

ACE, Audio, Biofuels Beltway, Ethanol

Biofuel Flights Take Air from New York

Joanna Schroeder

KLM biofuel flightKLM Royal Dutch Airlines (KLM) in partnership with Schiphol Group, Delta Air Lines and the Port Authority of New York and New Jersey, have begun a 25-week series of biofuel powered international flights. Last week A KLM B777-200 fueled in part by biofuel derived from cooking oil, departed from JFK International Airport and landed in Schiphol Amsterdam Airport. According to KLM, carbon dioxide emissions from aircraft account for more than half of all airport-related emissions and the use of biofuels are expected to reduce CO2 emissions.

“I am proud that KLM is once again demonstrating its leading role in developing sustainable biofuel,” said Camiel Eurlings, KLM’s Managing Director. “For eight years in a row, KLM, together with Air France, has been sector leader on the Dow Jones Sustainability Index. Alongside this biofuel series, we are starting a study to further identify sustainability gains in fuel, weight and carbon dioxide reduction throughout the entire flight process.

“We are striving to achieve the ‘optimal flight’ together with research institutes, suppliers, airports, and air traffic control. We are combining new and existing technology, processes, and efficiency initiatives to achieve this,” Eurlings concluded.

One challenge the aviation industry has faced is small volumes of aviation biofuels packaged with high costs for the fuel. Read More

aviation biofuels, biojet fuel, Renewable Energy

ROUSH Debuts New Propane Ford F-550

Joanna Schroeder

During the NTEA Work Truck Show this week, ROUSH CleanTech and Green Alternative Systems (GAS) debuted the new Ford F-550 chassis cab powered by propane autogas. The F-550 features 65 usable gallons, making it, according to ROUSH, the longest driving range of any dedicated alternative fuel counterpart on the market. The fuel tank sits between the frame rails and behind the aft axle. Customizable to carry up to 33 passengers as a shuttle, the Ford F-550 suits the delivery, construction, transit and utility markets. Equipped with a 6.8-liter, V10 engine, the propane autogas alternative fuel system is available beginning with 2013 model year vehicles or newer.

gI_80912_Ford F550GAS, a certified Ford Qualified Vehicle Modifier (QVM) installer, integrated the ROUSH CleanTech propane autogas fuel system technology into the F-550 chassis cab. The vehicles maintain the factory Ford warranty and the same horsepower, torque and towing capacity as their gasoline counterparts.

“Partnering with Ford QVM installers allows us the flexibility to launch products faster and package our fuel system to fit customer needs,” said Todd Mouw, vice president of sales and marketing for ROUSH CleanTech. “With gas and diesel prices soaring, companies looking for an alternative fuel that doesn’t compromise functionality will see significant savings to their bottom line using this cleaner-burning, American fuel.”

According to Mouw, fleet professionals running propane autogas vehicles can expect to save at least 40 percent on the price of fuel and reduce greenhouse gas emissions by up to 25 percent compared to gasoline. There is also a nationwide, large propane autogas refueling network.

“This is a monumental new product release for the fleet industry,” added Sean Connolly, general manager of GAS. “With an industry-leading fuel capacity, this dedicated propane autogas vehicle fills the gap for a reliable alternative fuel option for this commonly used application.”

Propane