Domestic Fuel

The company that has plans to build the U.S.’s biggest biodiesel plant is running out of time to purchase the 44-acre parcel of land along the Chesapeake Bay in Virginia before the land’s owner starts considering other offers.

Smiling Earth Energy got approval from the Chesapeake City Council to build the 320-million-gallon-a-year refinery six weeks ago, but this article in the Virginian-Pilot says company officials haven’t committed to the landowner to make the purchase:

“We’re down to the ninth inning,” landowner B. David Peck said this week.

“In the next week to 10 days, if things don’t materialize, I’ll explore other opportunities,” he said Thursday.

Reporters, suppliers for the project, and people from the neighborhood who have been promised $5 million in redevelopment money from Smiling Earth have been unable to reach the company in recent days.

What’s better than producing one clean-burning, renewable energy source? How about getting TWO clean-burning, renewable energy sources from one feedstock!

Researchers at the University of Leeds in the United Kingdom are looking at a way to get hydrogen gas from glycerin, a biodiesel by-product. This story from the Science Daily web site says it’s a green process that makes a green fuel even greener:

The novel process developed by Dr Valerie Dupont and her co-investigators in the University’s Faculty of Engineering mixes glycerol with steam at a controlled temperature and pressure, separating the waste product into hydrogen, water and carbon dioxide, with no residues. A special absorbent material filters out the carbon dioxide, which leaves a much purer product.

“Our process is a clean, renewable alternative to conventional methods. It produces something with high value from a low grade by-product for which there are few economical upgrading mechanisms” says Dr Dupont. “In addition, it’s a near ‘carbon-neutral’ process, since the CO2 generated is not derived from the use of fossil fuels.”

The article goes on to point out that this technology comes just as hydrogen-powered vehicles are poised to take off.

Renewable Energy Group and East Fork Biodiesel held a ribbon-cutting ceremony today for their 60-million-gallon-a-year biodiesel plant in Algona, Iowa with the plant fully operational on Tuesday.

This REG press release says the ceremony was attended by lawmakers and industry representatives, such as Iowa Senators Jack Kibbie (D-Emmetsburg) and David Johnson (R-Ocheyedan) and Iowa Representative Delores Mertz (DOttosen) as well as Randy Olson, Executive Director of the Iowa Biodiesel Board; and Monte Shaw, Executive Director of the Iowa Renewable Fuels Association… in addition to the companies’ officials:

“Demand is growing nationally for biodiesel. With that demand has come tremendous opportunity and growth for Iowans,” said Nile Ramsbottom, President, Renewable Energy Group, Inc. “We are exceptionally proud to work with our partners at East Fork Biodiesel, LLC. to have helped play a role in creating such a strong economic boost in Kossuth County.”

“Renewable fuels are the future,” said Ken Clark, chairman of the board, East Fork Biodiesel, LLC. “This facility in Algona will help strengthen Iowa’s place as a national leader in the industry while producing clean burning, renewable biodiesel.”

The soybean oil biodiesel plant will push Iowa’s biodiesel capacity above 250 million gallons annually… with 222 million of that coming from REG.

General Motors issued a statement in response to a USA Today report this week on a cost-benefit analysis of E85 ethanol, saying the report failed to take into account several positive factors.

“We believe ethanol as a renewable fuel is the best near-term alternative to oil as a transportation fuel and replacing gasoline with ethanol positively contributes to lowering greenhouse gas emissions,” said GM Chief Economist Mustafa Mohatarem in the statement. “You cannot take a snapshot in time and define a mature market.”

The analysis cited in the report was conducted by the Pardee Rand Graduate School.

When the Rand study was previewed at GM in October, the authors were told their work did not account for the significantly lower cost of second-generation ethanol that will be made from cellulosic and biomass feed stocks. Most estimates show the cost of making Gen2 ethanol at $1 or less a gallon before distribution costs.

Researchers at North Carolina State University are re-engineering the traditional sweet potato to make it better suited for producing ethanol.

According to a NCSU release, this industrial sweet potato doesn’t look, or taste, much like the Southern classic, but can produce twice the starch content of corn – the leading source of ethanol. More starch means more sugars that can be fermented into biofuel.

Project leader Craig Yencho, associate professor of Horticultural Science, is also working with another colleague on a way to further boost sugar — and thus ethanol — yield. By using bacteria from deep-sea thermal vents they are creating an industrial sweet potato that practically processes itself into ethanol.

“Our ultimate goal is to develop a self-processing sweet potato,” says Dr. Yencho, noting that the special genes could reduce the cost of enzymes that are used by biofuel processors to break down the starch in corn to sugars which are then converted into alcohol by fermentation.

North Carolina produces about 40 percent of the U.S. sweet potato crop and the industrial sweet potato could help diversify the state’s farm income.

The merger of two major ethanol producers is being seen as “a sign that ethanol-industry consolidation is gaining velocity.”

VeraSun Energy and US BioEnergy will merge into one entity under an agreement announced this week where VeraSun will pay $700 million in stock and the new company will retain the name of VeraSun.

VeraSun Chairman, CEO and President Donald L. Endres will remain CEO of the combined company, and US BioEnergy President and CEO Gordon Ommen will serve as chairman following the closing of the merger, which is expected to happen during the first quarter of 2008.

Upon completion of the merger, the combined company will have nine ethanol production facilities in operation and seven additional facilities under construction. Ommen says they “expect to reach 1.6 billion gallons of ethanol production capacity by the end of 2008, making us a global leader in ethanol production.”

Ohio is embracing wind energy. The Ohio Business Development Coalition says wind energy is a prominent option for meeting the needs of a growing renewable energy industry. The OBDC is a nonprofit organization that recruits opportunities for capital investment in the state and it says the development of wind power is one opportunity the state is poised to take on.

Ohio manufacturing companies are well positioned to meet the needs of the developing wind energy industry within the state, according to the Ohio Business Development Coalition (OBDC). Traditional manufacturing companies are investing in the production of components for wind turbines, further demonstrating the state’s commitment to renewable energy advancements.

There are 37 companies in Ohio associated with the wind energy industry and 34 more interested in getting involved. Large companies committed to manufacturing wind technology components include Canton-based bearings maker Timken Co. and industrial manufacturer Parker Hannifin Corp. of Mayfield Heights.

GreenHunter Energy is acquiring more than 7 MW of biodiesel-powered electrical generators. The energy company, based in Grapevine, Texas, says the generators will come form a third party company in Panama City, Panama.

The power plant is skid mounted and has a Tier I EPA certification and will operate under the TCEQ and all other local and state regulatory requirements. The power plant is essentially new with only one unit previously fired for less than one hour. The power plant is in the process of being boarded on a ship, after being thoroughly inspected, and will be transported to the Company’s new 105 million gallon per year biodiesel refinery located at the Houston Ship Channel. GreenHunter Energy operating personnel will test the power plant units for the following potential opportunities:

— The Houston industrial market
— The wind generated electricity market as an approach to improve the
capacity factor associated with intermittent wind power
— For additional capacity at biomass powered electrical plants
— As a stand alone peaking power plant due to its rapid electrical
generation capability

GreenHunter Energy describes itself as a company dedicated to developing renewable energy options such as wind, solar, biofuels and biomass power plants.

Western Wind Energy is supplying energy for new wind turbines that will be erected in Tehachapi, California. The energy company has announced that negotiations to deliver up to 120 MW of wind energy turbine generators in both the Mega watt and Multi Mega watt class are underway with several major wind turbine manufacturers.

Delivery is anticipated in late 2008 and commissioning is anticipated in early 2Q 2009. Windstar has received a construction permit number from Kern County and Western Wind has completed all archeological, biological, soils analysis and visual impact studies with a conclusion of “no significant impact”. Windstar is located within a project area of over 5,000 wind turbine generators delivering an annual output of 1.4 billion kilowatt hours from over 700 MW of nameplate capacity.

The first “official” action of the Renewable Fuels Now coalition was to determine where Americans stand on developing and using alternative energies. The coalition is a new umbrella organization of different associations that are working to provide accurate information about renewable fuels. Greg Krissek with ICM says opponents of alternative energies have swamped the public with misinformation about renewable fuels, particularly ethanol. But, Bob Dinneen, the president of a member organization the Renewable Fuels Association, says despite the barrage of misinformation, Americans are still strong supporters of alternative fueling options such as ethanol and biodiesel. He says the poll sponsored by the Renewable Fuels Now coalition affirms that 74 percent of Americans think the U.S. should be using more ethanol. Bob adds that 87 percent want the government to actively support the development of renewable fuels in the U.S. That’s why Greg says the next step for the new umbrella organization is to educate policy makers about the advantages of renewable fuels. He says the Renewable Fuels Now coalition wants to ensure policy makers have the correct information on alternative energies like ethanol and biodiesel as they debate the next Energy Bill and plan to expand the Renewable Fuels Standard developed in 2005.

This edition features comments from Renewable Fuels Now representatives RFA President Bob Dinneen and ICM’s Greg Krissek.

The “Fill up, Feel Good” podcast is available to download by subscription (see our sidebar link) or you can listen to it by clicking here (5:30 MP3 File):
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The Fill Up, Feel Good theme music is “Tribute to Joe Satriani” by Alan Renkl, thanks to the Podsafe Music Network.

“Fill up, Feel Good” is sponsored by the Ethanol Promotion and Information Council.

Podcast: Play in new window | Download (1.6MB)

A lawyer who deals in international biodiesel law has an article in December’s Biodiesel Magazine that outlines some of the pitfalls that U.S. companies that are trying to sell biodiesel plants and equipment to locations overseas.

Rich Weiner’s article says there is great potential in the foreign markets, if you’re able to get around the legal risks and challenges around the proposition:

Many factors affect overseas business ventures. The first is foreign government approvals. Unlike the United States, foreign governments often regulate the sale of biodiesel plants in their countries. In some countries, the project’s customer must be a government agency or an entity affiliated with the government. In others, the customer must be examined and approved by that country’s government before it may purchase a biodiesel plant or biodiesel equipment. Some countries even require that the contract between the U.S. company and its foreign customer be reviewed and approved by the appropriate ministry of the foreign government before the contract may become effective. Still others require that the biodiesel plant or equipment be approved by the foreign government before equipment importation or plant construction begins.

Weiner also points out that U.S. laws prevent giving gifts to foreign officials in exchange for contracts… and that applies to any subcontractors or suppliers who do it even without the U.S. company’s knowledge. Duties and tariffs, intellectual property rights, foreign construction laws, and what to do if there’s a dispute between a U.S. company and a foreign company or government.

Lots of good information for those involved in the biodiesel business looking to branch out overseas. Give it a read by clicking here.

San Francisco has become the largest city in the country to convert its entire fleet of diesel vehicles to biodiesel, hitting the green goal a month ahead of schedule.

This press release from Mayor Gavin Newsom’s office says it will cover more than 1,500 vehicles including MUNI buses, several fire engines, ambulances and street sweepers, among others:

“Every city bears responsibility for taking local action to address our global climate crisis,” said Mayor Newsom. “When it comes to the use of alternative fuels, renewable energy sources and greening our City fleet, San Francisco is demonstrating leadership and commitment on every front.”

The conversion from traditional diesel fuel to biodiesel is made possible by the use of B20, a mix of 20% biofuel and 80% petroleum diesel fuel. The conversion to biodiesel translates to roughly displacing 1.2 million gallons of diesel fuel each year.

The move comes on the heels of the city’s SFGreasecycle program that collects used cooking oil and grease from San Francisco’s many restaurants and turn it into biodiesel (see my November 21st post).

Seminole Energy Services of Tulsa, Okla. is talking with Nebraska ethanol plants about a $150 million project that could move a billion gallons of ethanol a year from plants to a terminal between Grand Island and Hastings.

Company representative say the pipeline could stretch 175 miles and the hub would be built ideally at an intersection of Union Pacific and BNSF rail lines so ethanol could be shipped out of state.

Meanwhile, the Association of Oil Pipe Lines is studying whether gasoline blends containing up to 20% ethanol can be transported safely in existing pipelines. The study will also focus on stress corrosion cracking and design requirements for new ethanol-only pipelines.

Analysts believe soybean prices could rise to all-time highs in 2008 as demand for beans as feedstocks for biodiesel and foodstocks for the Chinese take center stage.

This analysis from Reuters says China’s production and irrigation problems are just part of the increased demand for the U.S. crop that, in previous years, had lost ground to corn going to ethanol:

Throw in biofuels demand — specifically, biodiesel made from soyoil — and the soy market has a second wild card of possibly unlimited demand. Another factor is the sinking dollar, which is making dollar-based soybeans cheaper for export.

It is likely that CBOT soyoil will test its record top of 51 cents a lb notched 33 years ago, especially if crude oil — a market that soyoil mirrors given the expanding biodiesel industry — continues its rally.

Chicago Board of Trade January soyoil closed at at 46.58 cents a lb on Wednesday. Traders are concerned about how much of the soybean crop will go to food and how much will go to fuel.

Connecticut, known for its bedroom communities for commuters heading into New York City, has its first station for those commuters wanting to fuel up with biodiesel.

This press release says Governor M. Jodi Rell cut the ribbon on the first public-access retail biodiesel station in Connecticut at the Berkshire Country Store in West Cornwall:

“Today marks a true milestone for our state,” Governor Rell said. “Today, we are expanding access to domestic, renewable energy options for Connecticut residents and businesses.

The Connecticut Department of Transportation has been using a biodiesel blend for six years and commercial fleet owners have had access to a biodiesel station in New Haven for several years. However, until now, biodiesel has not been made available to the public at a Connecticut retail location.

Hale Hill Farm Biofuels will be supplying the biodiesel for the station.