Domestic Fuel

In 2006, Tennesse Governor Phil Bredesen allocated $1.5 million to the Tennessee Department of Transportation (TDOT) to develop a Biofuel Green Island Corridor network along Tennessee’s interstate system and major highways. TDOT has recently opened a solicitation for grant funding to assist in converting or installing fuel storage tanks and equipment to dispense B20 and E85 to the public.

The goal of the Green Island program is to help establish readily available “green island” refueling stations for B20 biodiesel and E85 ethanol no more than 100 miles apart along these corridors. This competitive grant program seeks to identify partner retail stations in areas where reasonably accessible and convenient retail biofuel stations are not in place. A minimum of 20 percent in nonfederal matching funds is required.

A statewide network of biofuel stations will encourage and expand the use of biofuels in Tennessee, which in turn will stimulate rural economic development, increase farm income, reduce vehicle emissions, help protect public health, and reduce dependence on petroleum.

Potential E85 and B20 retailers can view the solicitation by clicking here. Sumission is due by April 17, 2009.

Despite difficult current economic conditions, the ethanol industry is poised to meet the production targets of the Renewable Fuels Standard (RFS), according to a report released today by LECG LLC, a prominent economic consulting firm.

The report, “Contribution of the Ethanol Industry to the Economy of the United States,” was prepared by John M. Urbanchuk, Director, LECG LLC for the Renewable Fuels Association.

“As this report points out, these are unquestionably tough times for the economy and the ethanol industry,” said LECG Director and report author John Urbanchuk. “Nevertheless, it also finds that ethanol capacity continues to expand and that the industry is in position to meet the 36 billion gallon renewable fuels goal set for 2022. Through additional investment in both grain and cellulosic ethanol capacity, the industry will not only create new green jobs and provide increasing tax revenue to federal, state and local governments, but will continue to reduce our dependence on foreign oil.”

The report notes that the net benefit to the federal government, after for ethanol related tax credits, was more than $7 billion in 2008, providing a return on every dollar invested of 2.5 to 1.

Read the report here.

The 2009 National Ethanol Conference is underway in San Antonio. Cindy and I are on location and will be bringing you as much of the activities as we can courtesy of the Renewable Fuels Association. We’ll also be posting content onto The Ethanol Report site for RFA.

Today, one of the main activities is the annual golf tournament which is being played at The Club at Sonterra. It’s a beautiful sunny morning and we have a good crowd out having a good time. I’ll be here with them through lunch at their awards before heading back to the hotel. This evening we’ll have an opening reception and then tomorrow the main conference programs get started.

Just prior to the start of the golf tournament I spoke with RFA Chairman, Chris Standlee, Abengoa Bioenergy Corp. Chris is expecting this to be a great conference and said that not only are we in oil country but that there are more attendees this year from the oil business than usual. Chris says that he’s very optimistic about the health of the ethanol industry even in light of the challenging year we just completed.

You can listen to my interview with Chris here: nec-09-standlee.mp3

Keep an eye on our conference photo album which we’ll be adding to throughout the event: 2009 National Ethanol Conference Photo Album

Podcast: Play in new window | Download (1.1MB)

While Pres. Obama’s signing of the nearly $800 billion American Recovery and Reinvestment Act… better known as the Stimulus Bill… attracted lots of attention, especially for the billions that will be going to alternative energy, a Colorado company in the renewable energy field just was glad to help provide the backdrop for the event.

Denver based Hybrid Energy Group owns and operates the solar array on the roof of the Denver Museum of Nature and Science, where Obama and Vice-President Joe Biden toured during the bill-signing ceremony:

“It was a spectacular event for Colorado and the renewable energy industry, and we are pleased that our solar array was the backdrop to this important moment in history,” said HEG President, Woody Beardsley. “The stimulus package will double the amount of renewable energy produced over the next three years and that bodes well for clean energy projects across America.”

“We structured the development and ownership of the array so that an investment in solar energy was much more attractive to the museum,” said Beardsley. “By working with HEG, the museum was able to acquire renewable energy for less than if it had purchased the array on its own.”

This particular array at the museum is the first in a broader program HEG has unveiled to provide solar power to non-profit institutions and governmental entities.

The National Biodiesel Board is attempting to set the record straight and debunk some research the NBB sees as faulty.

The research in question comes from Holly Gibbs, a postdoctoral researcher at Stanford’s Woods Institute for the Environment. Gibbs contends that the biodiesel production is contributing to deforestation.

But NBB CEO Joe Jobe argues the biodiesel industry is built on sustainable practices that produces “a fuel proven to lower greenhouse gas emissions and provide energy from a renewable resource.” Jobe also challenges Gibbs’ methodology:

“Holly Gibbs’ research measured deforestation based on images spanning the eighties and nineties, long before biodiesel became a viable alternative to foreign oil. Agriculture expansion is spurred mainly by the demand for food and feed, particularly in developing nations. The solution to reducing deforestation is improving global sustainable agriculture practices and addressing the major causes of deforestation, such as logging and infrastructure development. Biodiesel is a part of that solution, driving research that increases crop yields, and improves supplies of protein and higher outputs for food and feed on the exact same acres of land.

“Biodiesel is also among the most powerful tools to fight carbon emission, chipping away at the largest contributor of greenhouse gas emissions-fossil fuels. In fact biodiesel has a 78 percent life cycle carbon reduction according to the USDA/DOE.”

How much biodiesel can you run in your diesel-powered vehicle? Well, some manufacturers warn that if you use more than a 5 percent blend, you’ll void your warranty.

But this interesting post on the New York Times’ Green Inc. Blog says there might be some question about whether the auto companies can restrict warranties based on the fuel you use… including biodiesel:

In an e-mail message discussing the new TDI clean diesel technology, Steve Keyes, Volkswagen’s director of public relations, stated “All Volkswagen TDI models are warranted for the use of up to a B5 blend. Blends of biodiesel higher than B5 void the Volkswagen warranty.”

The post goes on to point out that critics have long argued that car makers were setting biodiesel limits without actually testing to see what engines could take.

Then again, in this economy, who feels adventurous enough to run their own tests on a new vehicle… and see if your dealer will replace it if it breaks down. My guess is you’d never have to worry as long as you ran tested, proven biodiesel.

The podcast DomesticFuel Cast makes its return, along with the spiffy new logo you see here!

This show is one of great importance as we get to hear some of the Sandia National Laboratory’s press conference on the feasibility of producing 90 billion gallons of ethanol from sustainable biomass annually by the year 2030. That’s equal to one-third of the U.S.’s gasoline usage. The experts explain how the feedstock, water and transportation system will be or already are there to support this level of production.

Amazingly, a group of environmentalists from the Environmental Working Group quickly attacked the findings, dismissing facts with the mistaken rhetoric we’ve heard before. One of the group even went as far as saying it would be better to burn petroleum-based gasoline than clean-burning, renewable ethanol.

You’ve got to hear it for yourself, and you can do that here: DFCast-2-19-08.mp3

You can also subscribe to the DomesticFuel Cast here.

Podcast: Play in new window | Download (2.8MB)

Underwriters Laboratories (UL) released a press statement on February 19 noting that it will allow up to fifteen percent ethanol in gasoline dispensing units. The press release said that they support Authorities Having Jurisdiction (AHJs) who decide to permit legacy system dispensers, Listed to UL 87 and currently installed in the market, to be used with fuel blends containing a maximum ethanol content of 15%.

UL stresses that existing fuel dispensers certified under UL 87 were for intended use with ethanol blends up to E10, which is the current legal limit for non-flex fuel vehicles in the United States under the federal Clean Air Act. However, data the company has gathered as part of the organization’s ongoing research to investigate the impact of using higher ethanol blends in fuel dispensing systems supports that existing dispensers can be used with ethanol blends up to 15%. AHJs are advised to consult with the dispenser manufacturer to confirm that the dispenser is compatible with the fuel to be dispensed.

“UL continues to support technological advancements, while protecting safety. That is why we have invested resources and effort that go far beyond any business benefit UL might gain from this work to support the ethanol industry’s desire to have safety certification requirements established for E85 fuel dispensers,” said Drengenberg.

Thanks to new media and social networking technology, proceedings at the 14th Annual National Ethanol Conference will be made available worldwide as they happen next week, live from San Antonio, Texas.

For the first time, Renewable Fuels Association President and CEO Bob Dinneen’s State of the Industry Address will be webcast live on the official NEC blog, the Ethanol Report. In addition, video highlights of keynote speeches and other important sessions will be available, both on the official blog and here on Domestic Fuel.

The Ethanol Report will provide regular updates from the conference with an inside look as to what is being discussed throughout different breakout sessions and panel discussions, as well as view photos, videos, and audio interviews conducted by the Ethanol Report news team.

In addition, real-time information about panel discussions and speeches at the conference will be made through the RFA Twitter account. To receive short, active updates from this year’s NEC, please make sure to visit www.twitter.com/ethanolRFA and sign up.

Information and content provided on the Ethanol Report blog is also open to use by members of the media who are unable to attend the conference but would like to report on the event. There will be a frequently updated Flickr photo album link with high quality photos available, as well as downloadable audio.

Students in Utah schools are having their classrooms lit up and warmed up by a combination of wind, solar and geothermal energy sources. Those classrooms are also being funded by those same renewable energy projects.

This story from the Salt Lake Tribune says Utah’s School and Institutional Trust Lands Administration could make millions of dollars for the school trust over the next several years from alternative energy projects:

“In the last nine months,” said John Andrews, SITLA’s associate director, “the level of interest in [renewables] has gone through the roof.”

SITLA says the wind-farm lease is expected to generate several million dollars in revenue to the school trust over the initial
30-year lease.

The article says the agency is looking for several more wind-related leasing opportunities. And why not? Green energy that generates green for schools! Talk about a real education!

That little green pond scum is growing more and more every day as a feedstock for a green fuel. And a group backing the turning of algae into biodiesel is hosting a summit to help make the fuel some green… money.

The National Algae Association‘s Mid-South Chapter is hosting the Atlanta Algae Workshop, entitled “Algae, Our New Biofuel,” at the Hampton Inn and Suites in Downtown Atlanta, Georgia on Friday, February 27th:

The event will kick off with a presentation by Barry Cohen, Director of the National Algae Association. Will Thurmond, Chairman of R&D for the NAA and author of Algae 2020 will be speaking and acting as moderator for several round-table discussions on innovations and scientific advancements in algae research and development.

For registration and more information, click on the workshop’s Web site.

It’s been building for more than a year, and now, it looks like the war of words between the U.S. and European biodiesel communities will turn into a duty war.

This story from CNNMoney says Dow Jones Newswires has obtained a document that says the European Commission will place temporary duties on American biodiesel imported onto the continent starting March 12th, 2009:

The decision comes in response to complaints from the European Biodiesel Board, which represents the main producers in the E.U., that a subsidy the U.S. government gives to its biodiesel companies is unfairly harming the E.U. biodiesel market.

The EBB said the subsidy, which amounts to $1 per gallon of biodiesel, had encouraged U.S. companies to flood the E.U. market with their biodiesel, driving down prices and forcing E.U. producers to shut down production. The E.U. is by far the world’s largest consumer of biodiesel.

Last summer when the two sides were really clashing heading toward these duties, Manning Feraci, the National Biodiesel Board’s Vice President of Federal Affairs, responded to the Europeans’ charges of unfair trade practices:

“The allegations of harm leveled by the European biodiesel industry in these trade complaints are baseless. It is disingenuous and hypocritical that several of the European biodiesel companies that joined in the complaints are the very entities actively involved in the trade of U.S. biodiesel.

“The European biodiesel industry is not being harmed by U.S. competition. High feedstock costs, changes to EU member policies – and in some cases – poor business practices are the true issues facing European biodiesel producers. It is unfortunate that the European Biodiesel Board (EBB) has found it politically expedient to blame the U.S. biodiesel industry instead of focusing its efforts on the true challenges facing its membership.

Representatives of the American and European governments will get a chance to meet one more time on March 3rd before the duties are imposed with hopes of settling this dispute.

The Communicating Renewables Summit coming up in Minneapolis April 21-23 is a timely event for those involved in the alternative energy arena. The conference is designed specifically for the challenging task of getting the positive message about all renewables out to consumers, stakeholders, policy leaders and the media.

Conference organizer Joanna Schroeder with 4RCommunications says she came up with the idea for the event because she sees a need for communications education in the renewable energy industry. “As President Obama implements new energy legislation, this conference is designed to help communicators develop the skills they’re going to need to educate consumers,” Schroeder said.

Schroeder, who served as Director of Communications for the Ethanol Promotion and Information Council, says all renewable energy producers need to be prepared to defend incentives designed to grow renewable energy options. “Ethanol and biodiesel have already been experiencing the negative media, but I think that wind and solar are going to find that as they receive more tax incentives and subsidies they will have to go on the defensive also,” she said.

The conference will feature a number seasoned renewable industry professionals, such as Tom Collina, executive director of 2020 Vision, a national membership organization focused on explaining how energy choices affect both the environment and national security. “How we talk about renewables and energy in general is very important,” Collina says about the summit. “With all the new energy legislation and policy being considered, it’s more important than ever that we explain to the American people what’s at stake.”

Early bird registration for the summit (before February 25) is just $695. Registration and additional information about the conference can be found on-line at communicatingrenewables.com.

Here is a promotional video for the Communicating Renewables Summit:

President Barack Obama and Canadian Prime Minister Stephen Harper announced today that the United States and Canada will collaborate on developing clean energy technology to combat climate change. It was the only concrete agreement to come out of the first meeting between the two leaders this week.

Prior to the meeting, Canadian Renewable Fuels Association President Gordon Quaiattini and U.S. Renewable Fuels Association President Bob Dinneen issued a joint statement this week on the importance of the two neighboring countries to work together on energy security and the environment.

“As America and Canada look for ways to provide economic opportunity, reduce the impacts of climate change, and develop renewable energy sources, the role of biofuels in the energy plans of both nations is becoming increasingly important,” said Dinneen and Quaiattini. “We commend both Prime Minister Harper and President Obama on their commitment to a renewable energy future. And as representatives of our nation’s renewable fuels industry, we can proudly say that our industry is helping to lead the way.”

An ethanol plant in Lima, Ohio has been granted a new lease on life with the approved sale of the bankrupt facility to a new owner.

According to a story from the Lima News, the U.S. Bankruptcy Court for the Northern District of Ohio gave final approval this week for the sale of Greater Ohio (GO) Ethanol to Paladin Capital Group. The company reportedly intends to re-open the closed facility and operate it as a working ethanol plant.

Greater Ohio Ethanol began production last July and filed for bankruptcy protection less than five months later.