Domestic Fuel

So you say you haven’t heard enough from the 16 candidates running for President? There’s just not been enough media coverage for your tastes? OK, so maybe you think you’ve heard enough about the crowd (especially if you’re living in Iowa or New Hampshire), but you do need some information to make an informed decision, right? Especially when it comes to how they stack up on alternative energy issues.

Well, The Daily Green web site is offering a voter’s guide to how green all the candidates are (don’t be fooled by the graphic, there’s plenty of links to see how the Democrats are on alternative fuel issues). Here’s an example of what you would see on the page. I put these two candidates side by side. Normally, it’s just one at a time. Do your own comparing:

As I said, there are similar links for each of the candidates, Republicans and Democrats, at the Daily Green’s election guide web sites. Check ‘em out and make the decision for yourself. Maybe the sooner you make up your mind, the sooner they’ll leave the poor folks in Iowa and New Hampshire alone!

VeraSun Energy has broken ground on a new Oil Extraction Facility in Aurora, South Dakota. The new facility will use technology that enables the large ethanol producer to generate two renewable fuels from one kernel of corn.

VeraSun Energy Corporation, one of the nation’s largest ethanol producers, today announced that it began work on an oil extraction facility at its 120 million-gallon-per-year (MMGY) ethanol biorefinery located near Aurora, S.D. The facility will utilize a technology designed to extract corn oil from distillers grains, a co-product of the ethanol production process.

“The production of two biofuels from one kernel of corn makes economic and environmental sense,” said Pete Atkins, VeraSun vice president, corporate development. “This is a great example of the innovation that will continue to develop as the industry matures. We are pleased to contribute to the commercialization of this technology.”

VeraSun Energy first introduced the concept behind this new technology in 2006. The company plans to get the technology up and running at its Fort Dodge and Charles City, Iowa, biorefineries by the end of 2009.

In a world of tight margins, biodiesel producers are looking for an edge that will help them maintain their profitability. That edge might come in the form of modular designs for their refineries.

This article from Biodiesel Magazine says a compact modular plant design using proven techniques can improve biodiesel plant economics and help the construction or expansion process, while saving the builder and/or operator moneY:

Biodiesel plants represent an ideal opportunity to employ modular designs. Their scale lends itself well to modularization of all or significant portions of the production process. Modular techniques can positively impact equipment selection and configuration, producing a compact plant layout, and improving product quality and profitability.

Modular designs typically have a smaller footprint than field-erected plants. Storage tanks are usually free-standing, but the vast majority of the process equipment can be modularized and strategically located, lowering capital costs and improving plant efficiency. A well-implemented modular design takes advantage of a combination of horizontal and vertical layouts to locate equipment in an optimum spatial relationship. An experienced modular system designer can minimize space requirements, reduce piping runs and, in some cases, eliminate pumping requirements by allowing for gravitational flow.

The article goes on to say that a modular design can help a refiner optimize key process steps, assist in integrating quality assurance measures, and offers the ability to incorporate heat integration methodology.

Mexico, a big producer of petroleum, could be getting into the biodiesel business.

This story from Reuters says a new biofuel law that kicks in next year will encourage the production of biodiesel from crops like beets, yucca root, and sorghum, possibly solving some of the food-versus-fuel debate Mexico has been going through:

“Mexico could develop biodiesel faster than ethanol,” said Agriculture Minister Alberto Cardenas at a news conference.

Cardenas said a biodiesel industry would help the country’s poorest farmers, and that none of the crops Mexico currently grows for food would be replaced with biofuel plants.

No estimate of how much biodiesel Mexico could produce.

St. Louis-based AmerenUE, which serves 2.4 million electric customers and nearly one million natural gas customers in a 64,000 square mile area of Missouri and Illinois, has announced its first venture into wind energy.

This Ameren press release says the Midwest power giant will buy 100 megawatts (MW) of wind power from Horizon Wind Energy’s Rail Splitter Wind Farm located near Delavan, Illinois, honoring Ameren’s promise to add 100 megawatts of renewable capacity to serve its Missouri customers by 2010:

“This is an exciting day for AmerenUE,” says AmerenUE President and CEO Tom Voss. “It is our first venture into wind development. We will be looking for additional opportunities as we increase the amount of renewable resources in our generating portfolio. This is a significant first step toward further diversifying our fuel mix and demonstrating our commitment to environmental stewardship.”

(Thursday’s) announcement is a culmination of a thorough, year-long review of proposals UE sought earlier this year. AmerenUE intends to sign a 20-year purchased power agreement (PPA) for the wind farm’s output. The PPA has not yet been signed, and terms are still subject to negotiation. Once the agreement is signed, construction is expected to begin in the spring of 2008, with the project completed by the end of 2008. Sixty seven turbines will be located on the site, with each turbine capable of generating 1.5 megawatts of electricity.

Horizon is owned by Portuguese utility Energias de Portugal, S.A. (EDP), which produces more than 1,700 mgawatts of renewable power In Spain, Portugal, and France with another 3,000 megawatts worldwide due to come on line by the end of next year.

The American Lung Association of Minnesota has teamed up with the Minnesota Soybean Growers Association to offer a scholarship to a senior who writes the best essay on biodiesel.

This press release from the ALA of Minnesota says high school seniors are welcometo participate:

Current Minnesota high school seniors with plans to attend postsecondary education are eligible and encouraged to submit a personal essay on the topic of biodiesel. Two scholarships will be awarded. The author of the top essay selected will receive a $500 scholarship and the second place essay will be awarded a $250 scholarship. All essays and application materials must be submitted by 4:30pm on Wednesday, April 30, 2008.

“The American Lung Association of Minnesota is committed to increasing awareness of the environmental benefits of emerging alternative fuels, such
as biodiesel,” said scholarship coordinator Alison Chandler. “We hope the leaders of tomorrow can help us educate others today about the growing role
biodiesel plays as a transportation fuel in Minnesota.”

More information is available through the ALAMN website: www.CleanAirChoice.org, or you can contact Alison Chandler at (651) 268-7615 or email at Alison.Chandler@alamn.org.

Arkansas, home to the Tyson chicken empire, could be the home to a new feedstock for biodiesel… chicken fat.

This story from UPI says researchers in that state are looking at ways to perfect the chicken fat-to-biodiesel process:

Chemical engineers at the University of Arkansas were successful in using so-called supercritical methanol to transform chicken fat and tall oil fatty acid into biodiesel fuel, the university said Wednesday in a news release. The yield was greater than 90 percent, the university said.

Graduate student Brent Schulte subjected low-grade chicken fat and tall oil fatty acids to a chemical process known as supercritical methanol treatment. Substances become “supercritical” when they are heated and pressurized to a critical point, the highest temperature and pressure at which the substance can exist in equilibrium as a vapor and liquid.

The process is more efficient than other methods of turning chicken fat into biodiesel… as few other chicken fat biodiesel plants have started to pop up, mostly near poultry-processing plants.

The Earthrace, a biodiesel-powered boat out of New Zealand, will be making another attempt to set the world record for circumnavigation of the globe.

Earlier this year, the Earthrace had to abandon a record-setting try (see my May 31st post). But according to this story on FoxNews.com, the captain believes he’s got the bugs worked out since then, and he’s literally even put part of himself into the project by donating some of his own fat to make biodiesel:

The 24-meter (78-foot) Earthrace, skippered by New Zealander Pete Bethune, will set off from Valencia, Spain, on March 1 and traverse the Atlantic, Pacific and Indian oceans as well as the Panama and Suez canals in its more-than-24,000-nautical-mile journey.

He also made a symbolic gesture towards the project, undergoing liposuction with two other volunteers, which produced 10 liters — a bit more than 2 1/2 gallons — of human fat, enough to power the boat for 8 nautical miles.

Well, at least the boat will be a little lighter.

While the ethanol and biodiesel industries will benefit from President Bush’s signature on the new energy bill, wind and solar could be left out in the cold a bit.

Tax credits for the solar and wind energy industries are going to expire at the end of 2008. Renewal of the $21.5 billion of those credits prompted a veto threat from President Bush and eventual withdrawal of that section from the bill. This story from Reuters says the lack of the tax credits could have a chilling effect:

Without the tax credits set to expire at the end of 2008, homeowners and businesses will hesitate to invest in the new technologies, industry officials warn. Manufacturing plants for solar and wind power components will also be endangered, they said.

“It would be hard to imagine a worse time for the United States to effectively shift away from the one policy that’s now in place that reinforces renewable energy,” Wetstone said.

In the past, the solar and wind energy tax credits were saved at the last minute. But the article points out that the credits will expire three weeks before President Bush leaves office, and there’s seems to be little incentive for him to change his mind.

President Bush’s signing of H.R. 6, the Energy Independence and Security Act of 2007, has gained the praise of the National Biodiesel Board.

Joe Jobe, President of the NBB issued this statement:

“The U.S. biodiesel industry praises President Bush, Speaker Pelosi, Majority Leader Reid and the bipartisan supporters of biofuels in Congress who worked tirelessly to enact an expanded Renewable Fuels Standard (RFS). This is good public policy that meets the needs of consumers and addresses America’s pressing energy security concerns by increasing the use of clean burning, domestically produced biofuels like biodiesel to reduce our dependence on foreign oil. The nearly five-fold expansion of the RFS in this legislation is truly a landmark achievement.

“U.S. biodiesel producers are eager and capable of meeting the aggressive renewable goals in this bill, and our industry looks forward to doing its part to help America meet its energy security needs.”

President George W. Bush today signed the Energy Independence and Security Act of 2007 and ushered in a new era in the way America produces and uses energy.

Bush says the new law is “a major step toward reducing our dependence on oil, confronting global climate change, expanding the production of renewable fuels and giving future generations of our country a nation that is stronger, cleaner and more secure.” The bill signing took place this morning at the Department of Energy building.

Joining President Bush at the signing ceremony, Renewable Fuels Association President Bob Dinneen commented, “History will look back upon the enactment of the Energy Independence and Security Act of 2007 as the moment America chose a new energy policy path. By coupling increases in vehicle efficiency and renewable fuel use, America is taking the most immediate steps available that will have the greatest impact in securing a more sustainable energy and environmental future.”

National Corn Growers Association (NCGA) President Ron Litterer says the nation’s corn growers are very pleased with the legislation.

“NCGA appreciates Congress’s strong bipartisan leadership in getting the energy bill to the president’s desk. This legislative victory would not have been possible without the many renewable fuels advocates who paved the way. This energy bill demonstrates that leaders in both the Democratic and Republican parties clearly understand the future energy needs of this country.”

A two-year-long study is showing that biodiesel is as good as regular diesel for over-the-road trucks.

The “2 Million Mile Haul”… halfway through the study at this point… is looking at the benefits of using 20 percent biodiesel blend (B20) and is being conducted by the Iowa Soybean Association (ISA) in partnership with Iowa Central Community College, Decker Truck Line Inc., Caterpillar Inc., the National Biodiesel Board, Renewable Energy Group, Inc. and the U.S. Department of Agriculture. This story on the Energy Current web site says it’s believed this is the first comprehensive, publicly-documented demonstration of B20 in big rigs:

“The trucking industry is by far the single largest consumer of diesel fuel, using 38 billion gallons annually,” said Grant Kimberley, ISA director of market development. “This study demonstrates in a real-world environment that biodiesel can be used successfully year-round.”

Don Heck, coordinator of biotechnology and biofuels programs at Iowa Central Community College in Fort Dodge, Iowa, said, “Although we have data from only the first year of the study, we are pleased with the results to date. Preliminary results are that B20 biodiesel performs similarly to 100 percent diesel. We found a slight decrease in overall fuel efficiency for the B20 group of trucks, but it was not statistically significant. In fact, the difference was several times smaller than the driver-to-driver variability in fuel efficiency within each group.”

More than 1.5 million miles had been logged by the end of the first year, from Oct. 1, 2006 to Oct. 1, 2007. Overall fuel efficiency, including idle time, was slightly reduced in the B20 group. Average fuel consumption for the control group was 6.29 miles per gallon (mpg) and for the B20 group it was 6.15 mpg. The fuel efficiency difference of 2.2 percent between groups is not considered significant, especially when compared to driver variability.

Proponents of biodiesel believe the test will help the commercial credibility of the green fuel.

The developer of what will be the world’s biggest biodiesel plant… if it gets built… has been hit with another lawsuit, the second one this year.

Smiling Earth Energy has plans to build a 320-million-gallon-a-year biodiesel plant along the Chesapeake Bay in Virginia. But the company has had its troubles recently, including a lawsuit by an Oregon biodiesel company for failing to provide the promised $310 million in financing for a West Coast biodiesel plant… and then refusing to return a $100,000 deposit to the Oregon company (see my October 29, 2007 post). Now, Smiling Earth is being hit with a lawsuit by a handful of people who loaned $250,000 to the California company, accusing it of fraud, breach of contract, and racketeering. This story in the Virginian-Pilot has more:

The federal lawsuit accuses Smiling Earth, which is planning the world’s largest biodiesel plant in Chesapeake, of promising “investment returns” on the loans but never giving any of the money back. The plaintiffs are seeking damages of about $2 million.

The lawsuit was brought on behalf of two Utah residents, Rick Foy and Jenni Braunberger, and a California couple, Dean and Deborah Lane, according to court documents.

The litigation says Smiling Earth continually promised the investors they would get their money back with investment returns.

The National Biodiesel Board is applauding the U.S. House’s passage of the Energy Independence and Security Act of 2007 by a 314-100. The U.S. Senate passed identical legislation last week, and President Bush has indicated he will sign it.

The biggest selling point of the bill is the significant expansion of the Renewable Fuels Standard (RFS) that will increase the use of biodiesel in the United States, according to this NBB press release:

The expanded RFS provided for in H.R. 6 requires a specific renewable requirement for diesel fuel that will be met by biodiesel and other renewable biomass-based diesel fuels. Increasing the minimum renewable requirement in the diesel pool from 500 million gallons in 2009 to 1 billion gallons in 2012 will create a stable, viable domestic market for biodiesel. In addition, the fuel labeling requirements in the bill will promote consumer confidence in renewable fuels and help ensure that only quality fuels are entered into commerce.

“We congratulate the House and the Senate for the bipartisan efforts of policymakers who worked together to pass this landmark legislation that will help America depend less on foreign oil and more on clean-burning, domestically produced biodiesel,” said NBB CEO Joe Jobe. “Biodiesel producers across America stand ready to meet the aggressive renewable goals provided for in this bill.”

President George W. Bush is expected to sign the Energy Independence and Security Act of 2007 into law on Wednesday, after passage of the Senate bill by a vote of 314 to 100 in the House today.

Speaker of the House Nancy Pelosi (D-CA) called the bill “groundbreaking in what it will do.” The bill makes the first statutory increase in fuel economy standards in 32 years. By the year 2020 cars, light trucks and SUVs must average 35 miles per gallon. It also requires 36-billion gallons of ethanol and other biofuels to be incorporated into gasoline by 2022. There’s also a new mandate for biodiesel, requiring up to a billion gallons of annual usage by 2012.

Ethanol industry leaders are excited about the potential the bill’s passage creates for future ethanol sources. Jeff Broin, CEO of POET, said, “Passage of this Act will also hasten the development of cellulosic ethanol. An expanded RFS gives confidence to companies like ours who are making a sizable investment in cellulosic ethanol. With the market in place, our industry can do even more to improve the environment, develop rural economies and lessen our country’s dependence on foreign oil.”

President Bush plans to sign the bill into law during a ceremony at the Energy Department Wednesday morning.