Big Oil “Century of Subsidies” Birthday Party in DC

Joanna Schroeder

The Iowa Renewable Fuels Association (IRFA) is teaming up with the American Coalition for Ethanol (ACE) during their annual Biofuels Beltway March fly-in in Washington, D.C. to hold a celebration for Big Oil. Monte Shaw, executive director of IRFA, said they decided it would be a great time to hold a birthday party to celebrate the oldest, continuous oil subsidy, specific to the oil industry, that was enacted in 1913.

happy_birthday“And it dawned on us a few months ago that this is in fact the 100th birthday for oil subsidies and this calls for a party, and I think people can assume our tongues are firmly planted in our cheeks when we say we’re going to celebrate that fact,” said Shaw.

The “Century of Subsidies” Birthday Party will feature a thematic birthday cake sculpture from Charm City Cakes, made famous by its Food Network reality television show Ace of Cakes and take place at 430 Dirksen Senate Office Building (Washington, DC) on Thursday, March 14, 2013 from 2:30 pm to 3:30 pm. On hand will be Senators Chuck Grassley (Iowa) and Amy Klobuchar (Minn) and Senator Tom Harkin (Iowa) has also been invited.

The ethanol blenders tax credit, that Shaw explained actually went to Big Oil if they blended ethanol, expired at the end of 2011. “So little old ethanol somehow manages to get by without it but the 100 year old oil industry, the most profitable industry in the history of the world, still needs that taxpayer crush to get by at least that’s the way they tell it,” said Shaw.

Shaw explained there are several oil subsidies with the oldest federal subsidy going back to 1913. However, he said, to be fair they are not going to make the case that they all should go away. “What we’re saying is, they’re there. And we’re sick and tired of members of Congress who don’t know any better or don’t want to know any better, saying, oh, why do you need the RFS?  Why do you this, why do you need that? Can’t you just compete on a level playing field?”

“When the fact of the matter is, our competition has had 100 years of subsidization. They’ve had nearly 40 years of a petroleum mandate written into federal law that says unless you drive a flex-fuel vehicle, you will purchase gasoline with a minimum amount of petroleum (85% percent of petroleum). The playing field is overwhelmingly tilted to the oil industry and that has got to be a part of all discussions around the RFS,” said Shaw.

Learn more about the “Century of Subsidies” in my interview with Monte: Century of Subsidies

ACE, Audio, biofuels, Iowa RFA, Oil, RFS

Is the Fossil-Fuel Industrial Era Over?

Joanna Schroeder

According to Ethical Markets’ Green Transition Scorecard, which tracks private investments growing the green economy since 2007, $4.1 trillion was invested or committed by the fourth quarter of 2012. The Green Transition Scoreboard tracks five sectors: Renewable Energy; Green Construction, Energy Efficiency; Corporate R&D and Green Transition ScorecardCleantech. The report is based on Ethical Markets president Hazel Henderson’s research as a science advisor.

“The output of Rio+20 was an unprecedented reintegration of human knowledge, realizing that environmental, social and human capital must be assessed and integrated into financial markets in order to achieve equitable and sustainable forms of development and resulting in new global shared goals and paths toward low-carbon, cleaner, greener, information-richer economies,” said Dr. Henderson.

According to the March 2013 GTS report “Green Transition Inflection Point,” many private investors are following our recommended avenue for institutional investors to shift to green sectors. This transition strategy, which suggests 40 percent of portfolios should be in Green Transition sectors, validates models indicating that investing $1 trillion annually until 2020 can scale innovations and reduce costs. With over $4.1 trillion invested since 2007, investors and countries growing green sectors globally are on track to reach $10 trillion in investments by 2020.

The report omits nuclear, clean coal, carbon capture & sequestration, and biofuels from feedstocks other than sea-grown algae. Fossilized sectors are becoming increasingly stranded assets as low-carbon regulations are implemented and oil, coal and gas reserves become harder to exploit. The report also looks closely at nanotech, genetic engineering, artificial life-forms and 3D printing, determining their green contribution on a case by case basis.

Clean Energy, Renewable Energy

Lignol Invests in Territory Biofuels Limited

Joanna Schroeder

Lignol Energy Corporation has announced that it has subscribed for convertible notes with a principal value of A$1.18 million issued by Territory Biofuels Limited and signed a Technology Collaboration Agreement that includes a package of technical and further assistance to aid in the restart of Territory Biofuels Limited 150 million litres per year biodiesel plant and glycerine refinery located in Darwin, Australia.

Lignol Energy logo“We are proud to be working with Territory Biofuels Limited on this important, large scale project,” said Ross MacLachlan, Chairman and CEO of Lignol. “The Darwin plant is an impressive industrial facility and the TBF team has developed a compelling business model with strong commercial partnerships with which to become a major regional player in the biodiesel market in the Pacific Rim. This transaction reinforces the commitment to our strategy of selective investments in energy related projects which have synergies with our Company and have the potential to generate near term cash flow.”

The terms of the notes provide for conversion into an equity position for Lignol between 20 percent to 40 percent in Territory Biofuels Limited, depending on a range of criteria related to the development of the Darwin facility. This investment will be funded, in part, from Lignol’s recently announced line of credit with its major shareholder, Difference Capital Funding Ltd. The terms of the Technology Collaboration Agreement provide for technical assistance from Lignol and its partners with respect to both the restart of the facility and the potential integration of new pretreatment technologies and catalysts to facilitate the processing of a broad range of low cost feedstocks.

“Lignol’s financial investment and support from its partners is an important step in the restart of our world class facility,” said Chris Hart, Chairman of Territory Biofuels Limited. “Having toured the Lignol facilities and met with their scientists, engineers and partners, I am also confident that our new technology collaboration will assist in an efficient recommissioning of our project and lead to the implementation of advanced technologies that maximize plant performance.”

advanced biofuels, Biodiesel, International

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