Domestic Fuel

The U.S. Department of Energy (DOE) today challenged test results released by the American Petroleum Institute claiming that 15% ethanol-blended gasoline (E15) can harm vehicle engines.

In a post on the Energy.gov blog, DOE Vehicle Technologies Program Manager Patrick Davis said the study done by the Coordinating Research Council (CRC) failed on a number of counts. “We believe the study is significantly flawed,” said Davis. “The CRC failed to establish a proper control group, a standard component of scientific, data-driven testing and a necessity to determine statistical significance for any results.”

Most importantly, Davis noted that no engines in the study were tested with E10 fuel, “the de facto standard gasoline for all grades, which represents more than 90 percent of gasoline available in the U.S. market.” In addition, “only three out of the eight engines were tested with straight gasoline containing no ethanol (E0), and one of those three failed the CRC’s test.”

Ethanol industry organizations were also quick to point out the flaws in the study and note that E15 has been tested more than any other automotive fuel in history. “The reality is they are completely dismissing the fact that E15 is the most tested fuel to date, with extensive testing done by the Department of Energy and the Environmental Protection Agency, with results showing no significant difference between gasoline without any ethanol and an E15 blend,” said Growth Energy CEO Tom Buis.

Renewable Fuels Association president Bob Dinneen noted that the government has tested E15 “the equivalent of 12 round trips to the Moon” and found no problems with the use of E15 in vehicles made since model year 2001. “This study, and continued efforts aimed at confusing rather than informing consumers, impede this progress and do little to address the nation’s need for clean, renewable fuel that lowers the price at the pump and creates jobs here at home,” said Dinneen.

The Iowa State University professor who co-authored a new study on ethanol and gasoline prices released this week says the impact of the growing use of the domestically-produced fuel is significant.

The new analysis from the Center for Agricultural and Rural Development (CARD), an update to a 2009 peer-reviewed paper published in Energy Policy by professors Dermot Hayes of ISU and Xiaodong Du of the University of Wisconsin, found that the growing use of American ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011, up from an average impact of $0.89 per gallon in 2010. The study also found the between 2000 and 2011, gasoline prices have been reduced by an average of $0.29 per gallon, thanks to ethanol.

“Those numbers are large,” said Professor Hayes during a conference call on Tuesday during which he explained his hypotheses for the big impact of ethanol. “Think about the world before ethanol occurred. Every time a gasoline refinery would shut down, the price of gasoline would go up 10-20 cents because the U.S. was at its refinery capacity. What ethanol has done is increased refinery capacity.”

Hayes calls ethanol a “magic bullet that can squeeze ten percent more gasoline out of a barrel of crude oil.”

The original study was the result of a dissertation by Professor Du, while the Renewable Fuels Association funded the update.

Listen to Hayes’ explanation of the study here: ISU Professor Dermot Hayes

Frito-Lay and parent company PepsiCo are showing their commitment to environmental sustainability, by announcing that their all-electric trucks have just passed one million miles of use.

Since going electric late last year, its fleet of 176 trucks by Smith Electric Vehicles has eliminated the need for approximately 200,000 gallons of diesel fuel. The all-electric trucks are used for deliveries on urban routes with fewer daily miles.Frito-Lay owns the seventh largest fleet in the U.S. with a total of over 20,000 trucks. The $13 billion convenient foods business has a goal to reduce greenhouse gases and fuel consumption 50 percent by 2020.

“The first million miles with the electric trucks have been a journey of understanding and refining both how and where we use these vehicles, as well as providing input to help improve upon the performance for the next generation vehicle,” said Mike O’Connell, senior director of fleet capability for Frito-Lay North America.

This year Frito-Lay will purchase 100 Newton Series 2000 all-electric commercial vehicles bringing the total number of its electric fleet to more than 280, and a fuel consumption reduction of 500,000 gallons annually.
With all electric trucks fully deployed on routes, Frito-Lay expects to reduce their fuel consumption by 500,000 gallons a year. The trucks generate zero tailpipe emissions. Electric trucks reduce fuel consumption, noise pollution and vehicle CO2 emissions, compared to traditional delivery trucks.

Compressed natural gas (CNG) tractors will be introduced soon, and will be used to haul large loads. Each CNG vehicle, purchased from Freightliner, will reduce greenhouse gas emissions by 23 percent, compared to diesel. With 67 CNG vehicles planned to be on route by the end of the year, Frito-Lay will eliminate the need for more than 900,000 gallons of diesel fuel annually. The CNG vehicles will be used at seven Frito-Lay North America distribution centers, including: Rancho Cucamonga, CA; Irving, TX; Phoenix, AZ; Beloit, WI; Frankfort, IN; Charlotte, NC; and Casa Grande, AZ. The company piloted 18 CNG vehicles to prepare for the roll out.

ARA’s ReadiJet Alternative Fuel Initiative has a new member: Chevron Lummus Global (CLG) a 50-50 joint venture between Chevron Products Company and Lummus Technology. The goal of the project is to create drop-in diesel and jet kero biofuels. The two companies will work together to combine ARA’s CH PROCESS technology with CLG’s ISOCONVERSION process technology to create drop-in biofuels for jet and diesel engines.

“The integrated ARA/CLG process provides a pathway for fulfilling the military and civilian markets’ requirements for alternative fuels at parity with petroleum while spurring opportunities for America’s farmers without subsidies,” said Rob Sues, ARA’s President and CEO.

ReadiJet fuel is currently being produced in anticipation for a number of upcoming activities including ground engine testing at OEM facilities, a test flight planned for June 2012 and generation of fit-for-purpose data necessary for ASTM certification.

According to Ed Coppola, ARA fuels principal engineer, the CH Process uses water to reduce hydrogen and catalyst consumption as well as carbon emissions when compared to other conversion processes.  Once the project proves successful and construction is complete on commercial scale biorefineries, CLG will provide licensing and engineering services, reactor engineering, catalyst supply, and start-up assistance.

“With the combination of ARA’s CH PROCESS and CLG’s ISOCONVERSION process technology, we can now produce fungible distillate fuels that meet full ASTM quality requirements and can be blended into refiners’ distillate fuel pools without the density and blending quality issues associated with other biodiesel processes on the market,” said CLG’s Co-Managing Director, Leon DeBruyn.

He added, “We’re also excited that our process works just as well with any other fatty acid bio-derived oils, plant seed oils, and algal oil, which will provide long lasting value for our customers by giving them flexibility to process what is available in the market.”

Stuart Jet Center has added solar energy to three of their hangers. The 50 kilowatt system was installed by Peak Solar LLC and is the 5th largest privately owned solar energy system in Florida. The return on investment for the project is estimated to be between 5-7 years with the help of a business rebate from Florida Power and Light along with a 30 percent tax benefit from the federal government.

The solar system features 240 Canadian Solar panels and installation support was provided by Coronado Homes. This is the first solar development at the Stuart Jet Center but additional solar installations are in the works. The Stuart Jet Center said not only did this project make financial sense, but environmental sense as well and hopes other businesses in the community will follow suit and install solar power systems.

This 50kw system will save the equivalent of: 4,835.07 gallons of oil per year; recycle 44,940 pounds of waste; and offset CO2 emissions by 130,333 pounds each year.

Our latest ZimmPoll asked the question, “When was the last time you talked to a journalist about agriculture?” The question was inspired by an AgChat Twitter conversation question that had been submitted by @BASFAgro! We’re supposed to stand up for our industry and livelihoods that are threatened by lots of misinformation that gets spread by the media. What are we doing about it? How are we speaking out? Are we willing to develop a relationship with the reporters at our local mainstream media outlets (newspaper/radio/tv/web)? We appreciate responses from those in the ethanol industry. Glad to hear some of you are taking this time to do this.

Here are the results, 50% said Recently (I do frequently). Wow. Keep it up. But 22% said Never (Waste of time) and just over 9%/each said, Recently (I rarely do); Long time ago; Never (I will now though).

Our new ZimmPoll is now live and asks the question, “Who should be responsible for child nutrition?” This question was inspired by last night’s FoodChat Twitter conversation. I appreciate the school lunch program and what USDA thinks it is accomplishing by creating rules but somehow it doesn’t sit right with me. There would be no need for this if parents would take some personal responsibility for themselves and their children. More and more government control of our lives just won’t work in the long run. At least that’s my opinion. What’s yours?

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

El Salvador is soon to be the home of a new international geothermal training center for Latin America and the Caribbean. The country received a grant for $2 million from the Inter-American Development Bank (IDB) and the center will help aid countries learn how to develop and run geothermal energy facilities.

It is estimated that the region’s geothermal potential is 6,000 megawatts. Central America represents 43 percent, Mexico 39 percent, the Andean region 17 percent, and Southern Cone 1 percent. However, to realize this potential, Central America must improve its technical and scientific capabilities.

The training center, located at the Universidad de El Salvador, will offer three specialized graduate-level courses for geothermal experts between 2013-2015. The program will offer 10 scholarships for Salvadoran participants and 10 scholarships for students from other countries.  The program is the only one of its kind in the region and is based on a 2010 pilot program conducted by Universidad de El Salvador, together with LaGeo and support from Italy.

In addition to the courses, a Sustainable Regional Training Plan in Geothermal Energy will be prepared to examine future demand for training as well as academic and financial aspects. It will define curriculum and teaching methods needed to ensure that students receive the best training available. Consideration will also be given to creating additional masters or doctoral-level training in geothermal energy.

In El Salvador two geothermal fields are currently being developed, Ahuachapán and Berlíncon. Once completed they will boast combined installed capacity of 204 megawatts and a net annual 1,421 gigawatt/hours of generation. This will equate to 14 percent of national installed capacity and 25 percent of net generation capacity, with production projected for an additional 25-30 years.

A new report from Carbon Trade Watch, “Nothing Neutral Here: Large-scale biomass subsidies in the UK and the role of the EU ETS,” is sounding alarms over the UK’s move to increase biomass consumption as part of its green economy plans. Earlier this month, Brazilian Suzano Papel e Celulose received approval for what is believed to be the most advanced genetically modified (GM) tree plantation trial ever.

The report ties together demand for biomass in the UK to the role of the EU’s Emissions Trading System and what Carbon Trade Watch says is the destructive expansion of industrial monoculture tree plantations around the world. The report came on the heals of an April 26, 2012 announcement from the UK government regarding its bioenergy strategy that included increased energy production from biomass. Carbon Trade Watch believes the “British biomass boom” will benefit polluters and cause “widespread environmental destruction through land grabs and deforestation.”

“The British government seems determined to lock the country into a dirty energy pathway that fuels climate chaos, arguably the greatest modern day threat to human survival,” said report author Joseph Zacune. “Campaigners are warning that the government’s new bioenergy strategy will require around 80 million tonnes of wood for biomass energy that would unleash land grabs and cause major emissions from deforestation. Why should we continue to subsidise polluters in favour of appropriate energy solutions like wind, solar and tidal energy?”

According to Carbon Trade Watch, local communities across the UK are campaigning to stop biomass-fueled power plants while companies are “greenwashing their polluting activities.

Tamra Gilbertson co-director of Carbon Trade Watch added, “Climate justice struggles bring together grassroots networks, groups and individuals that are demanding tough action against the root causes of climate change and for a truly sustainable, affordable and democratic energy system. To continue the same over-production and over-consumption of energy is a dead-end but governments continue to ensure that profit-seeking corporations control the energy systems and pollute our skies.”

An update to a 2009 report from the Center for Agricultural and Rural Development (CARD) on the impact of ethanol on domestic gasoline prices was released today, showing that ethanol reduced wholesale gasoline prices by $1.09 per gallon nationally last year. Renewable Fuels Association President and CEO Bob Dinneen says this peer-reviewed study shows how ethanol is keeping gas prices lower than they might otherwise be.

“The results are significant,” Dinneen said. “It reflects the fact that ethanol is less expensive than gasoline today and is displacing ten percent of liquid transportation fuel today and has a huge impact on the price of crude oil.” The $1.09 per gallon impact is 20 cents more than the previous year.

Dinneen explains that the $1.09 a gallon savings means that ethanol reduced the average American household’s spending on gasoline by more
than $1,200 last year, based on average gasoline consumption data. “Since 2000, ethanol has helped save $39.8 billion annually in excess gasoline costs – or roughly $349 per household per year,” he said.

Since the study is based on just 10% ethanol in the nation’s gasoline supply, Dinneen notes that increasing that under the E15 waiver approved by EPA can only result in more savings. “If you’re going to be adding 50% more of a product that is less expensive than gasoline to the overall blend, you’d be providing consumers an even more significant benefit,” he said. “We believe the economics of ethanol are going to drive E15 into the marketplace this summer.”

Listen to Dinneen talk about the new report in this edition of “The Ethanol Report.” Bob Dinneen Discusses Impact of Ethanol on Gas Prices Report

The Hall County School system is the first in Georgia to adopt propane autogas for its school bus fleet. The buses were unveiled during a “Georgians supporting Georgians for a greener community” event that featured Governor Nathan Deal and Lieutenant Governor Casey Cagle. Hall County School system purchased 20 Blue Bird Propane-Powered Vision School buses that were manufactured in Georgia.

The 72 passenger buses each feature a ROUSH CleanTech liquid propane autogas fuel system. According to ROUSH, this system reduces nitrogen oxide, carbon monoxide and total hydrocarbon emissions as well as nearly eliminate particulate matter as compared to buses fueled with traditional diesel fuel.

“We choose propane autogas because not only does it represent significant reduced fuel costs and clean-burning properties, but also because the source, natural gas, is in abundant supply right here in America,” said William Schofield, superintendent of the Hall County Schools. “With today’s tight school budgets, using a transportation fuel that saves taxpayers money, keeps the environment clean, and keeps jobs within our national borders is a win-win for everyone. Plus, our drivers love how quiet the propane buses perform.”

According to the Natural Resources Defense Council, children are among those most susceptible to the health effects of exhaust exposure. Because of this fact, school districts across the country have been looking for ways to reduce exhaust emissions. For Hall County they will pay less than $2.00 per gallon for the propane as compared to $3.50 for diesel. During 2012, the school districts expects to save $36,000 in fuel costs.

Hall County tested the system over a two-year time frame before the decision was made. Phil Horlock, president & CEO of Blue Bird Corporation added, “Schools across the nation are experiencing the environmental and economic benefits of Blue Bird’s propane buses. We are proud to deliver a bus that not only provides school children with a reliable, safe and environmentally-friendly ride to and from school every day, but also fuels economic development in Georgia.”

What might be a good use of food waste? Hydrogen. Researchers from the University of Birmingham in the UK are creating bioenergy in the form of hydrogen for use an an alternative to gasoline. Researchers note that in a country like Brazil that is converting sugarcane to ethanol it may not be sustainable in the long-term. The reason is because the process generates carbon dioxide and agricultural waste. The advantage of creating hydrogen is that it can use the waste generated by the production of other products and it is sustainable and emission free.

Professor Lynne Macaskie, Professor of Applied Microbiology at the University of Birmingham, gave a presentation on the hydrogen research during a collaborative workshop in São Paulo on May 14, 2012. “Fuel cells need clean energy to run them. If you provide bacteria with a supply of sugary waste from, for example, chocolate production, the bacteria can produce hydrogen. At the moment manufacturers pay to dispose of waste but with our technique they could convert it to clean electricity instead.”

According to Macaskie, the research shows a huge potential for biohydrogen as a fuel for the future. “Biohydrogen could even be made from the wastes from bioethanol production – two biofuels for the price of one,” he said. “More work from focused teams, however, is needed, as agricultural wastes are tougher for bacteria to digest.”

The event was organized by O Conselho de Reitores das Universidades Estaduais de São Paulo (CRUESP) and the FAPESP bioenergy programme (FAPESP-BIOEN). Participants came from the University of Birmingham, the University of Nottingham, the State University of Campinas (UNICAMP), the University of São Paulo, and São Paulo State University (UNESP).

Long Beach, California is the host of the 2012 Alternative Clean Transportation (ACT) Expo, an event that showcases alternatively fueled vehicles. One of the participants is ROUSH CleanTech, who will be speaking with consumers and fleet managers to discuss propane autogas. The company’s vice president of sales and marketing, Todd Mouw, will be speaking on May 16th during the “Gaseous Fuel Upfitters” panel. He says that their customers are seeing savings on maintenance and fuel costs without compromising range or performance.

“Fleet managers can talk to our customers who have not only realized the benefits of propane autogas, but after experiencing this zero compromise alternative fuel, are coming back for more,” said Mouw whose company is exhibiting in booth 439.

California has approved the use of propane autogas and one of ROUSH CleanTech’s customers is ThyssenKrupp Elevator who will be announcing the deployment of eight propane autogas vehicles in LA. The company will also deploy eight vehicles in San Diego with plans to operate 10 percent of its fleet with propane by 2015.

Tom Armstrong, director of fleet at ThyssenKrupp Elevator added, “When we laid out all the fuels available today, there was only one alternative fuel source that met all of our needs, and that was propane autogas.”

The ACT Expo takes place May 15-17 at the Long Beach Convention Center.

In Louisiana, Agri Process Innovations has announced the startup of Oswalt Bioenergy of Lake Providence, Agri’s twenty second biodiesel plant opening. Chemical engineer Brian Mattingly led the startup for the Louisiana company. Mattingly said that this startup, which was completed in only seven days, went smoothly, largely due to good planning and coordination between APInnovations and Oswalt Bioenergy. The facility is expected to have a 5 million gallon capacity, using multiple feedstocks.

“We checked all of our instruments, motors, and control loops prior to startup, and Oswalt had everything we needed on site and ready to go,” says Mattingly.

Oswalt Bioenergy is owned by Sonny Oswalt, and managed by his son, Hal Oswalt. Both are pleased with the plant’s startup and the timing. Their goal is to have Oswalt Bioenergy ready to sell biodiesel very soon. Hal Oswalt notes an ongoing demand for biodiesel pursuant to RFS2, and says that a lack of plants in his immediate area region helped make the decision to move forward with this five million gallon per year, multi feedstock plant. He is emphatic about enlisting the proper support as one of the keys to success.

“When we started this process, we selected Agri Process Innovations because we found them to be the most experienced engineering group in the industry and the ones whose technology was the most tried and tested,” says Oswalt.

“In six days, we were up and running at full nameplate capacity with a product that passed all our testing,” says Hal Oswalt.

The Oswalts used the Feedstock Financing Program offered by INTL FCStone Inc.’s wholly owned subsidiary FCStone Merchant Services, LLC allowing the plant to operate at full capacity. INTL FCStone Inc. provides a wide variety of risk management services to assist plant operators in managing and maximizing plant profit margins.

“The past five years in the biodiesel industry have been extremely volatile” says Nate Burk of FCStone Merchant Services’ Renewable Fuels Group. He notes that the ongoing growth of the biodiesel industry speaks volumes to the dedication and commitment of companies like Oswalt Bioenergy. “FCStone Merchant Services is pleased to have the opportunity to work with the Oswalts during their initial start-up and we look forward to a long lasting relationship,” says Burk.

The Renewable Fuels Association (RFA) will be hosting a webinar focused on ASTM D5798 fuel specification. Kristy Moore, RFA’s VP of Technical Services along with Coleman Jones, Biofuels Implementation Manager of General Motors will lead the event on May 22 at 1:00 pm Central Standard Time.

The webinar is in response to recent changes made by the ASTM D02 committee creating changes to the ASTM D5798 Standard Specification for Ethanol Fuel Blends for Flexible-Fuel Automotive Spark-Ignition Engines. In other words, the “E85″ Specification. While several changes were made the most significant improvement is the allowance of a wider range of ethanol content, specifically 51 to 83% by volume. Some additional modifications were made that will improve the flexibility for fuel blenders while still ensuring optimal performance for drivers of flex-fuel vehicles. These, along with other changes were needed to allow both E85 sales to continue as well as to broaden the use of mid-level ethanol blends.

It is important to understand that neither the definition of E85 nor the capability to blend it have been altered by this update to D5798.

The aforementioned issues will be addressed as well as what these changes mean for E85, alternative fuels, government fleets, and mid-level ethanol blends. The webinar will also address many concerns and questions that have risen in light of how marketers across the country are adopting new practices based on this new specification. For those who would like to participate, you will need to register here: http://bit.ly/JUIG3D.

Honeywell has announced a deal to license it’s technology to Emerald Biofuels LLC to produce Honeywell Green Diesel at its facility in Louisiana.  Emerald will use Honeywell’s UOP / Eni Ecofining process technology to produce an estimated 85 million gallons per year of green diesel using non-edible second-generation oils and animal fats. The green diesel is chemically identical to petroleum-based diesel, making the fuel a “drop-in fuel” meaning it can be used by diesel vehicles with no modifications to either the vehicles or the infrastructure system.

Emerald Biofuels is based in Illinois and has enlisted the services of International Alliance Group to provide engineering, procurement and construction services for the project.

“We are very pleased to work with Emerald in its efforts to advance the production of biofuels through this breakthrough project in the U.S.,” said Jim Rekoske, vice president and general manager of Honeywell’s UOP Renewable Energy and Chemicals business unit. “We are proud to offer a technology solution that supports diesel production, while lessening the environmental impact of fuel production through the use of alternative feedstocks and the reduction of greenhouse gas emissions.”

According to Honeywell its UOP Ecofining process, which uses hydroprocessing technology to convert the feedstock to fuel, offers improved performance over both biodiesel and petroleum-based diesel. The fuel has an octane value of 80 compared with a cetane range, the measure of the combustion quality of diesel, between 40-60 with current diesel on the market. Higher cetane values help diesel engines operate more effectively.