Domestic Fuel

As Minnesota gets set to implement the nation’s biggest biodiesel mandate (as we reported back in May), that by the year 2015 could see 20 percent of all diesel sold in the state come from biodiesel, officials are tackling an issue that literally gums up the works: the flow of biodiesel in the cold.

This article from Biodiesel Magazine says the Minnesota Biodiesel Task Force is putting together a committee to look at how to solve the flow of biodiesel problem in the state’s bone-chilling winters:

The Minnesota legislature instructed the task force to create a technical committee to discuss cold weather issues related to biodiesel. Plans are for the committee to start meeting in late July or early August and have recommendations for the NextGen board by January 2009. “That group will be made up of technical folks who will be able to discuss what problems we can anticipate and what can be done about those,” [Ralph Groschen, an agriculture marketing specialist for the Minnesota Department of Agriculture] said.

The article goes on to say that officials are trying to head off some of the problems of a couple of years ago when off-spec biodiesel and cold weather clogged a lot of diesel engines:

The technical committee will create recommendations to make sure that the cold weather problems with biodiesel won’t reoccur in future years. According to Groschen, the industry has already taken a proactive approach to preventing future cold flow problems. “We don’t expect a lot of big changes to be made at this point,” he said.

The percentage of biodiesel in Minnesota’s mandate, as well as the success, is dependent on availability of the green fuel and its quality control.

General Motors (GM) awarded a total of $84,000 to 56 Clean Cities Coalitions throughout the country. This funding was based on: E85 vehicle sales and infrastructure installation, participation in GM-sponsored functions, and involvement in GM-certified alternative fuel vehicle dealers.

The top award honors went to Clean Fuels Ohio with a $10,000 award. Chicago Area Clean Cities received $5,000 for the second year in a row and New York City and Lower Hudson Valley, Pittsburgh Region, and Central Indiana Clean Cities each were funded $3,000.

To view a complete listing of all 56 GM awardees, click here.

Clean Cities is a government-industry partnership sponsored by the U.S. Department of Energy’s (DOE) Vehicle Technologies Program. With almost 90 local coalitions and more than 5,400 stakeholders, Clean Cities’ mission is to reduce petroleum consumption in the transportation sector.

The world’s superpowers… the current reigning one and the up-and-comer… are also super when it comes to wind power.

This story from CNN says the U.S. and China are leading the world in wind energy development. And as we’ve reported before, the American charge is being led in Texas, which produces more wind energy than any other state:

Several Texan transmission companies announced Monday they were forming a consortium to invest in the $5 billion cost of building new power lines to take advantage of the state’s vast wind power.

Those new lines, dubbed by Oncor as a “renewable energy superhighway,” will accommodate about 18,500 megawatts of wind generation by 2012– enough energy to power 4 million homes.

And America’s biggest rival is also rivaling it in wind energy development:
Read the rest of this post…

A planned biodiesel refinery in Louisiana that will make the green fuel from low-grade, inedible fats and greases is on schedule to open at the end of next year.

This press release from WebWire.com says Dynamic Fuels, a joint venture of Tyson Foods and Syntroleum Corporation, has gotten final approval from its parent companies to build its first renewable synthetic fuels facility at Geismar, Louisiana:

In conjunction with plant approval, Tyson and Syntroleum have approved the project budget of $138 million. Capital funding includes $100 million in GO Zone Bonds previously approved by the Louisiana State Bond Commission. The balance of $38 million will be funded through equity contributions in the form of cash commitments of $19 million per owner, $13.25 million of which each owner delivered to Dynamic Fuels on July 11.

“Approval to construct and fund the Geismar plant is a huge milestone for Dynamic Fuels, reflecting an outstanding effort by the Dynamic Fuels team to complete basic engineering and advance the project,” said Jeff Bigger, senior vice president of business development for Syntroleum. “With this approval we maintain our original project schedule and budget for the Geismar facility.”

The plant is expected to be produce about 75 million gallons of biodiesel a year when it is complete.

E85 sold for 85 cents per gallon as part of a promotion to celebrate the opening of an E85 fueling faclity in Glenville, NY. General Motors and the state of NY sponsored the promotion at the Glenville Mobil Mart at 245 Saratoga Road for 85 minutes on Saturday, July 26.

“With the generous help of General Motors today, we were able to run a promotion E85 for 85 cents for 85 minutes. E85 flex fuel generally sells for a dollar less than gasoline. You get a little less mileage but it is a win win all the way around,” said Glenville Mobil Mart owner Steve Weekes.

The station currently sells regular unleaded gasoline as E10 and diesel. They are open 24 hours and offer a full convenience store and 24 hour Dunkin Donuts. The 5,000 gallon E85 tank supplies four E85 nozzles.

The Glenville Mobil Mart is the 22nd E85 location in the state of New York.

My Capital News 9 video of Glenville Mobil Mart promotion

There seems to be no end to the rhetoric bouncing around between agricultural experts, critics and media about what’s driving food costs. Biofuels are still one of the most common scapegoats for why we’re paying more for our food than ever before. But the Farm Foundation wants to get to the root of it all. That’s why it sought out three academics from Purdue University to research more than a dozen studies and determine the “truth” behind what the organization calls “one of the most important issues facing agriculture today.” The Farm Foundation hopes the findings of their report will offer policy makers an objective source to refer to when facing the challenges of today’s food system.

Wally Tyner is one of the professors who was a part of the three-man team that conducted the study. The agricultural economics guru says his team found three major driving factors in high food prices:

“The first is global trends in production and consumption of agricultural commodities. The second is has to do with sort of macro economic factors, the depreciation of the dollar. And the third has to do with biofuels. And these are linked in some ways but in some ways its like a perfect storm of all these things coming together at the same time that has led to the huge run-up in prices.”

In this DomesticFuel Cast, we hear from Neal Conklin, President of Farm Foundation and Wally Tyner, Professor of Agricultural Economics at Purdue University. Here is the Domestic Fuel Cast #7:
df-podcast-07.mp3

You can also subscribe to the DomesticFuel Cast using the following url/feed link: http://www.zimmcomm.biz/domesticfuel/domestic-fuel-cast.xml.

Podcast: Play in new window | Download (3.3MB)

U.S. government officials are following up on the success of last March’s Washington International Renewable Energy Conference (WIREC 2008) with a report of that three-day conference.

This press release from the USDA announces the launch of the WIREC Conference Report at www.WIREC2008.gov, as well as the National Renewable Energy Laboratory’s release of a preliminary impact assessment of the pledges submitted to the Washington International Action Program at: http://www.nrel.gov/analysis/wirec/pledges_08.html :

The WIREC 2008 Report is a comprehensive overview of the three-day March conference which focused on cross-cutting renewable energy policy issues: research and development; market adoption and finance; agriculture, forestry, and rural development; and involvement of sub-national authorities. “The vast supply of renewable energy resources must be harnessed in ways that are technically feasible, financially viable and socially acceptable,” said Ambassador Reno Harnish, Principal Deputy Assistant Secretary of State for Oceans, Environment and Science. “The United States looks forward to working together with public and private partners, both domestic and international, to make renewable energy a growing reality in the years to come.”

The National Renewable Energy Laboratory (NREL) has been authorized by the U.S. government to document the carbon dioxide (CO2) savings from the pledges made at WIREC 2008 . These pledges represent a large number of players and sectors from participating countries demonstrating the wide variety of opportunities that exist to accelerate renewable energy markets around the world. Upon receiving and reviewing comments on their preliminary assessment from the pledging entities, NREL plans to publish a robust impact analysis in August.

Officials say the 145 pledges are the most important outcome from the conference, having the potential to provide thousands of megawatts of renewable electricity capacity through 2030, while eliminating billions of tons of CO2.

Secretary of Agriculture Ed Schafer will help kick off the third annual Florida Farm to Fuel summit this week in Orlando as keynote speaker Wednesday morning, July 30.

Other speakers include Florida Governor Charlie Crist, Brian Dean with the Interamerican Ethanol Commission, Canadian Renewable Fuels Association president Gordon Quaiattini, and US Renewable Fuels Association president Bob Dinneen.

The summit brings together hundreds of industry leaders in agriculture, petroleum, academia, financial institutions and the government who want to make Florida a leader in the production of renewable energy. Participants will hear about where Florida currently stands with biofuels infrastructure, the latest renewable energy technologies and the growing market for carbon credits.

Florida Agriculture and Consumer Services Commissioner Charles Bronson has been actively promoting the production of renewable energy in Florida, including ethanol made from agriculture waste and other woody products, through this conference and legislative efforts.

“With each increase in the nation’s oil and gas prices, the need for alternative sources of fuel and energy become more critical,” Bronson said. “Florida has the greatest potential for biomass production in the country, and the technology exists to convert natural resources to produce clean, alternative fuel. This conference will bring together all the stakeholders so we can continue working toward the goal of reducing our dependence on foreign oil while at the same time providing another source of income for our struggling farmers.”

The summit is being held at the Rosen Shingle Creek lodge in Orlando and will conclude on August 1.

A Florida biotech company has created a new subsidiary to use sugarcane ethanol for chemical production.

Industrial Biotechnology Corporation has formed Renewable Chemicals Corporation to produce chemicals utilizing sugar cane based ethanol as feedstock source material instead of petroleum.

According to an IBC news release, the company “plans to produce these renewable chemicals customized to the specific sustainability and pricing requirements of the consumer packaging, energy, agricultural, pesticides, materials and polymer industries.”

“There is tremendous market interest for plastics derived from renewable, sustainable sources” says Industrial Biotechnology Corporation CEO Andy Badolato. “Major retailers, consumer product companies, and the packaging and plastics industries are working together to implement solutions to lessen our dependence upon foreign oil and to reduce global warming. The utilization of sugar cane ethanol as a chemical feedstock is the next logical step, after its use as an alternative fuel.”

One of the more significant findings of a Purdue University study released this week on food price drivers is that ethanol policy is only responsible for $1 of the $4 price increase in corn prices since 2004.

Economist Wally Tyner says between 2004 and the beginning of 2008, oil went from $40 per barrel to $120 per barrel at the same time corn prices increased from $2.00 a bushel to $6.00. “Of that $4 increase, about $1 is due to the US subsidy and about $3 is due to the higher crude oil price,” Tyner told a Farm Foundation forum on the study earlier this week. “So even if all the subsidies go away tomorrow, corn prices would still be high, unless we chose to ban use of corn for ethanol.”

University of Nebraska policy specialist Brad Lubben, who gave his analysis of the study at the forum in terms of public policy, said this is an important point to consider when attempting to change the Renewable Fuels Standard in an effort to lower food prices because it is the “easiest” to manipulate. “It’s an important consequence to realize that the easiest policy to attack may have relatively little significance and little impact on the current supply and demand balance for these ag commodities and for energy,” Lubben said.

Lubben pointed out that while it may seem that changing the RFS is easy, EPA has already had to postpone its decision on the request for a partial waiver of the RFS because of the challenges they are having in analyzing all the comments and data they have on the issue.

The Farm Foundation study on food price drivers released this week in Washington DC was the focus of a forum held at the National Press Club.

This edition of “The Ethanol Report” features comments from the Farm Foundation forum and report on “What’s Driving Food Prices?” Featured are Farm Foundation President Neil Conklin, Purdue University economist Wally Tyner, and University of Nebraska public policy analyst Brad Lubben.

You can subscribe to the twice-monthly “The Ethanol Report” by following this link.

Or you can listen to it on-line here: ethanol-report-17.mp3

Podcast: Play in new window | Download (3.6MB)

At a time when fuel prices are through the roof, a major American news organization is sponsoring a road trip across the country… running on biodiesel.

CNN.com producer Cody McCloy and web developer Brian Hardy jumped in a 1978 International Harvester Scout and kicked off the two-week trip on Friday, going from San Francisco to Atlanta. Starting Monday morning at 9:40, they’ll be blogging about their adventure on the green fuel on CNN.com Live. This article tells a little bit about what you can expect to see from the trip… and it won’t just be about biodiesel:

During our road trip, we’ll blog and report about what kind of mileage we’re getting with biodiesel fuel and how easy it is to find places that sell it.

Some biofuels are less expensive per gallon than gasoline — cutting the average cost of gas by 20 to 35 cents per gallon, according to the U.S. Department of Energy. An average American family can save up to $300 per year by using ethanol, according to the DOE Web site.

Now while they’re about half right when they say biodiesel is a mixture of diesel and vegetable oil, they do get it right when they point out the green fuel is biodegradable and is cleaner than petroleum-based diesel.

Should be an interesting trip to follow. You can see an interactive map here, and as I mentioned earlier, they’ll be blogging on CNN.com Live starting Monday morning.

A new company has been formed that looks to lead the U.S. hydrogen market.

Eden Hydrogen Inc. is the product of the merging of two American subsidiaries of Australian-based Energy Ltd… Hythane Company of Denver, Colorado and HyRadix of Des Plaines, Illinois. This story from the Wall Street Journal’s Market Watch web site says the new company will be headquartered in Des Plaines, Illinois.

“Eden Hydrogen is a milestone in our growing capacity to deliver integrated hydrogen solutions to customers in the U.S. and globally,” said Greg Solomon, Executive Chairman, Eden Energy Ltd. based in Perth, Australia. “We have captured the hydrogen supply chain within a single, efficient company.”
Robert Gray has been named Chief Executive Officer of Eden Hydrogen Inc. He was formerly Chief Executive Officer of Eden Innovations Ltd. and a past president of HyRadix. Roger Mamaro, President of Hythane Company, will lead global operations and Dave Cepla, President of HyRadix, will lead global sales and marketing for the new company.

“As consumers in the U.S. and around the world demand cost effective and clean alternatives to petroleum, the market for hydrogen-based fuels and technologies is rapidly expanding,” said Robert Gray, CEO, Eden Hydrogen Inc. “Eden Hydrogen is uniquely positioned to provide economical onsite hydrogen generation, delivery, and storage.”

The announcement comes on the heels of a study that recommends the government spends $55 billion over the next 15 years to help hydrogen vehicles are competitive with their petroleum-fueled counterparts on American roads.

U.S. Senator Dick Lugar yesterday announced that the International Trade Association at the U.S. Department of Commerce has organized a free webinar titled, “Improving your bottom line with ethanol,” on August 12, 2008, from 2:00 p.m. to 3:30 p.m.

According to the announcement, the web-based seminar will provide U.S. petroleum retailers with information on the current market for E85, ethanol conversion logistics and government programs that advance E85 distribution within the United States.

To subscribe to the event or for more information, contact Shannon Fraser by Wednesday, August 6, 2008 at Shannon.Fraser@mail.doc.gov.

BlueFire Ethanol Fuels of California has been given the go-ahead to build the nation’s first commercial biowaste-to-ethanol facility in Los Angeles County.

The county’s regional planning commission unanimously agreed to issue a zoning permit to BlueFire Ethanol to build a $30 million facility in Lancaster, located north of Los Angeles. The plant will be built next to a landfill and construction is scheduled to begin in the fall.

BlueFire Ethanol selected the Lancaster location because an estimated 170 tons of biowaste material, including woodchips, grass cuttings and other organic waste, already passes by the property every day. The plant is also designed to use reclaimed water and lignin, a byproduct of the production process, in order to produce its own electricity and steam.

The new facility will use BlueFire’s commercially-ready concentrated acid hydrolysis technology process which could convert the waste into as much as 3.2 million gallons of cellulosic ethanol per year.