Domestic Fuel

Robert Friedland, President and CEO of Proton Energy Systems, will  be honored today with a coveted service award from the National Hydrogen Association (NHA) during its annual national conference being held in Columbia, SC. The 2009 Award for Meritorious Service is presented annually to three individuals who exhibit exceptional leadership and contributions that further the development of the hydrogen industry. Proton Energy Systems designs and manufactures proton exchange membrane (PEM) electrochemical systems to convert water to hydrogen.

In a company press statement released early today, NHA President Jeffrey A. Serfass was quoted as saying, “Mr. Friedland’s remarkable record of achievement over the years cannot come at a more critical moment, as energy security and green energy are major issues confronting our nation. I cannot think of a more worthy recipient for this award.”

Friedland, co-founded Proton Energy in 1996, is also being commended for his role and mentorship in providing smaller emerging hydrogen technology companies with examples of solid financial and marketing business models.

“I am honored to accept this National Hydrogen Association award on behalf of Proton Energy Systems,” said Friedland.  “Proton’s mission has always been to develop hydrogen technology in creative and practical ways that can benefit our customers and advance green energy possibilities and potential throughout the globe.”

Commercializing Gasification/Fermentation Technology was the topic of comments made by Mark Dietzen, INEOS Bio, at the Farm Foundation Transition To A Bio Economy Conference.

He says that they have a practical technology that they’re in the process of implementing to be online by 2011 to produce cellulosic ethanol. He thinks that it will help bridge the gap between what’s possible with crop based ethanol and allow the substitution of a larger percentage of gasoline with a bio based fuel.

You can listen to my interview with Mark here: ff-global-09-dietzen.mp3

You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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

I spoke with Paul Willems, BP Energy Biosciences Institute, one of our speakers at the Farm Foundation Transition To A Bio Economy Conference. I had met him previously at an earlier conference in the series.

Paul says the BP Energy Biosciences Institute was created as a place to apply modern biology to energy problems. He told us that from their perspective, the turbulant times we’re in right now are temporary and that the fundamental trends for the future are unchanged. Those being the supply of oil and gas and the growth and demand for energy products. He says that their CEO likes to say that, “the future has been delayed, it hasn’t been canceled.”

I think he made a good point in my interview with him that we shouldn’t panic. He says there are numerous technology efforts going on in the alternative fuels industry and that it would be a mistake to see that work evaporate because we live in a world of crisis. He urges a steady course toward the future. He also talks about the benefits of biotechnology in developing more efficient alternative fuel production but points out that the industry is still just in its infancy.

You can listen to my interview with Paul here: ff-global-09-willems.mp3

You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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

Experts are expressing doubts the U.S. will meet targets for cellulosic ethanol production required under the Energy Independence and Security Act of 2007, but the need remains to make it happen as soon as possible.

The legislation calls for the production of 4.3 billion gallons by 2015, but during a House Agriculture Subcommittee hearing this week, Dr. Howard Gruenspecht with the Energy Information Administration said, “It seems unlikely to us that you would get to those kind of levels by 2015, 2016.”

Gruenspecht says there are cellulosic ethanol plants opening up. “They will learn things from the initial plants and it will take some time for the standard to be developed,” he said. “It’s more complex than a corn ethanol plant.” He also noted that the industry needs additional funding for continued development.

Cellulosic ethanol company representatives were in Washington DC this week for the Biotechnology Industry Organization (BIO)‘s annual fly-in and one of their top issues in meeting with members of Congress and the administration was getting additional federal investment for advance biofuels. However, during a telephone press conference on Tuesday, BIO executive vice president Brent Erickson also admitted that the ambitious goals of the EISA for cellulosic ethanol will probably not be reached. “I think given the current economic turndown, the progress toward commercialization has slowed, and it is probably unlikely,” said Erickson in response to a reporter’s direct question as to whether the 2010 target for 100 million gallons of cellulosic ethanol will be met.

Still, the companies who are trying to make it happen remain optimistic about the future. “Given the long-term fundamentals for liquid fuels, the need is there,” said John Howe with Verenium. “This is not a discretionary activity. We have no choice but to pursue biofuels from cellulosics. We just need to do it the right way.”

Representatives from eight different advanced biofuels companies – Verenium, Aurora Biofuels, Abengoa Bioenergy, Gevo, DuPont Danisco Cellulosic Ethanol, Amyris, Mendel Biotechnology, Coskata, and Novozymes – all participated in this week’s fly-in and press conference.

Corn Plus, an ethanol plant producing 49 million gallons annually in Winnebago, Minnesota, is looking at using wastewater instead of fresh water for its production process. The plant uses up to 350,000 gallons of fresh water daily and sees an opportunity knowing that the city discharges a minimum of the same amount of wastewater into the Blue Earth River daily.

“It’s a wonderful reuse of water that otherwise would just be discharged in the river,” said Mary Fralish, a deputy director of Public Works in Mankato. “And that kind of use is catching fire across the country.”

Corn Plus’ General Manager Keith Kor asked lawmakers for assistace and Senator Julie Rosen and Representative Bob Gunther sponsored legislation that will help finance pipe to transport the wastewater to the plant. The bill seeks between $250,000 and $300,000.

“They want to eliminate some of the controversy about using water in ethanol plants,” Gunther said.

Corn Plus began production in 1993. It’s new fluidized bed is one of its kind in the world.

In March, the European Commission imposed tariffs of 26 euros ($34.51) to 41 euros ($54.42) per 100 kg (220 lbs) on American biodiesel, virtually shutting the Yankee green fuel out of the European market.

Today, the National Biodiesel Board (NBB) turned in formal written comments to the EC’s decision to impose those provisional antidumping (AD) and countervailing duties (CVD) on U.S. biodiesel entering Europe, citing procedural and factual shortcomings in Europe’s decision:

“The comments we have filed highlight that arbitrary procedural conclusions and inaccurate market assumptions were used by the EC as the basis for imposing provisional duties on U.S. biodiesel,” stated Manning Feraci, NBB’s Vice President for Federal Affairs. “The rationale used to impose AD and CVD duties – which clearly benefit the interests of European biodiesel producers – runs afoul of the EU’s WTO commitments.”

The NBB’s comments plainly illustrate that the European industry has not been harmed by U.S. competition, a fundamental fact that must be proven before duties can be finalized later this year. The comments filed by the NBB also note the faulty procedural assumptions that are utilized in the EC’s ruling, specifically relating to the arbitrary decision to change the definition of the product under investigation. In addition, the provisional ruling also appears to omit key information from significant EU biodiesel producers that would be detrimental to the European Biodiesel Board’s (EBB) claims in the investigations. Strikingly, the EU producers that are alleging harm in the complaints have increased their market share by 5.8% and posted a 5.7% profit, which is quite healthy by industry standards.

Feraci adds that he hopes the EC will recognize the value of the NBB’s comments and meet its WTO obligations.

Biofuels like ethanol and biodiesel weren’t the only energy alternatives on the program at the Farm Foundation Transition To A Bio Economy Conference. We also had a presentation on wind energy from Mark Willers, Minwind Energy.

Mark says Minwind Energy was formed by a group of local farmers and businessmen in southwest Minnesota. He’d like people to understand that the electrical grid in the United States needs to be upgraded due to continuing increases in the use of electricity and how that is accomplished and funded is going to be an important issue. He thinks Americans want and need an energy policy that’s focused on efficiency. He says that Congress has extended production tax credits for wind turbines and that’s been helpful.

I thought he made some interesting points about how much news and discussion focuses on liquid fuel like gasoline when the largest energy use in America is from electricity. This is the sector of energy use that wind makes its contribution into.

You can listen to my interview with Mark here: ff-global-09-willers.mp3

You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

Podcast: Play in new window | Download (4.7MB)

The National Ethanol Vehicle Coalition (NEVC) has formed the National Ethanol Vehicle Foundation (NEVF). This foundation was introduced to provide Americans with an opportunity to contribute to advancing the nation’s use of renewable transportation fuels such as E85 and other high level blends of ethanol.

“The proceeds of funds contributed to the NEVF will solely be used to increase awareness of the benefits of using domestically produced ethanol as a form of alternative transportation fuel,” noted NEVC Executive Director Phil Lampert. “The NEVF strongly supports ethanol produced from both agricultural feed stocks and cellulosic materials.”

The NEVF’s mission will be to continue to promote a domestically produced fuel that: Advances jobs for Americans; reduces greenhouse gas emissions; and promotes American energy independence.

To make a 100% tax deductible contribution to the NEVF, click here.

The legislative guru for the National Biodiesel Board is Manning Feraci. He was on the Farm Foundation Transition To A Bio Economy Conference program.

He gave us an update on the current state of the biodiesel industry and the need for stable policies coming out of DC. He says that he sees some real opportunities now as some of the energy bill mandates are being implemented. He says it’s also a good time to get some structural reforms to the biodiesel tax incentive that will make it work better. I asked him about the carbon issue and he says that biodiesel is such an efficient fuel that it makes the product a good fit in helping obtain green house gas emissions reductions.

You can listen to my interview with Manning here: ff-global-09-feraci.mp3

You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

Podcast: Play in new window | Download (2.9MB)

A new report has found that ethanol use is contributing to a growing reduction in greenhouse gases on a global scale.

Using a model for lifecycle assessment of transportation fuels called GHGenius, report author Don O’Connor examined greenhouse gas (GHG) reductions from grain ethanol since 1995 and projected GHG reductions from ethanol out to 2015. The important conclusion was that GHG reductions will grow by over 100% from 1995 to 2015.

“I think what the study has documented is the importance of time in life cycle assessment work,” said report author Don O’Connor. “This issue in general has been overlooked by people.”

The report was commissioned by the International Energy Agency (IEA) Bioenergy Task 39 and the results were announced today by the Global Renewable Fuels Alliance (GRFA), an organization which represents over 60% of the global biofuels production from 30 countries.

GRFA spokesperson Bliss Baker says the report clearly illustrates the improving environmental performance of ethanol compared to gasoline. “This report demonstrates that governments must develop energy policies that take into account the increasing efficiency of global ethanol production and do not rely on out-of-date data and out-dated straw man arguments,” said Baker.

The research also found ethanol’s energy balance continues to improve as well. In 2005, the energy balance ratio for grain ethanol was estimated at 1:1.42, meaning every unit of energy used to produce ethanol returned 1.42 units of usable energy to the consumer. By 2015, the energy balance ratio is expected to be 1:1.93, a 55% increase in energy efficiency in just 10 years.

Read the entire report here.

Listen to comments from Baker and O’Connor during a press conference Wednesday morning:
grfa-iea.mp3

Podcast: Play in new window | Download (2.5MB)

The purchase of seven VeraSun plants by Valero Energy has caused quite a buzz in financial circles and within the biofuels industry. This sale marked the most significant entrance into the ethanol market by an oil company. So what does this mean and who will this benefit? These questions and others will be answered during the interactive webinar:  Who Will Benefit from the Biofuel Industry’s Current Distress? The webinar, hosted by INFOCAST, is scheduled for April 2 from 1:00 -2:30 ET.

The webinar will cover several topics including the state of the industry; what the VeraSun Energy bankruptcy auction means for the future consolidation of the industry; possible roles the oil industry will play in the biofuels industry moving forward; predictions on what the biofuel industry look like in the next 1-5 years; and general information about the economic health and future lending opportunities.

To learn more and to register for the webinar, click here.

As we approach the 39th celebration of Earth Day on April 22nd I’m integrating a few environmental books into the repertoire. Too many people criticize the “crazy tree huggers” as doing more harm than good, but “Hope for a Heated Planet” author Robert Musil offers a different take to approaching the environmental challenges our world faces, one that in my opinion was too long in being recognized.

“…if Americans and a new, broader environmental and climate movement are to be successful, we will need to find more successful ways to think and talk about—or frame—global climate change and its serious impacts already becoming visible around the country.” One way to reframe this conversation, says Musil, is show people that the environment is not just around us but inside us. “It is us.”

Musil is a strong proponent of the development of alternative energy but he cautions us not to rely on the government to make this happen. “Now that we have entered a new, audacious era of hope with President Barack Obama, I should warn you and give away my ending. President Obama alone will not save us from the destruction of the planet, nor will the new 111th Congress.” 
Read the rest of this post…

The largest petroleum refiner in North America is now officially in the ethanol business.

The sale of five ethanol plants and a development site from bankrupt VeraSun to Valero Renewable Fuels officially closed at 12:01 a.m. CDT today. The facilities are located in Aurora, S.D.; Fort Dodge, Charles City, and Hartley, Iowa; and Welcome, Minn., and the development site is in Reynolds, Ind.

Valero Renewable Fuels is a subsidiary of Valero Energy Corporation, North America’s largest petroleum refiner and marketer based in San Antonio, Texas. Valero purchased the ethanol production facilities in Aurora, Fort Dodge, Charles City, Hartley and Welcome, in addition to the Reynolds site, for $350 million.

Valero also successfully bid $72 million for a facility in Albert City, Iowa facility and $55 million for one in Albion, Nebraska, which are expected to close in the coming weeks. VeraSun also expects to close on the sale of its remaining facilities in the next several weeks.

The Natural Resources Defense Council (NRDC) and the Renewable Fuels Association (RFA) are calling on the Obama administration to “follow a transparent, science based process in determining the rules for the Renewable Fuels Standard (RFS), including the key issue of greenhouse gas emissions.”

“We must ensure biofuels are done right,” said Franz Matzner, acting legislative director for NRDC. “A key step is for EPA to accurately determine the global warming emissions associated with biofuels by using the best science and economic data available.”

Signing a joint letter to EPA Administrator Lisa Jackson and Office of Management and Budget (OMB) Director Peter Orzag, the groups underscored the need to move quickly to get the rule for RFS on the street. Also emphasized was the need to provide the full spectrum of data, assumptions, and methodologies used to design the program, which mandates 36 billion gallons of biofuel production by 2022.

“Proven science must be the driver behind any effort to calculate the global warming emissions of any fuel, including petroleum and biofuels,” said RFA President and CEO Bob Dinneen. “It is vital that EPA provide full transparency into its process and allow for informed comments on their approach. We urge EPA to issue its proposed rule post haste and begin the process of public commentary.”