Domestic Fuel

A race circuit for young drivers to get their professional careers going… while running on a clean, renewable fuel, gets started this weekend. The 2009 Volkswagen Jetta TDI Cup series kicks off at VIRginia International Raceway on April 25 & 26… the second year that VW has offered a new way of thinking about auto racing.

The series, sanctioned by SCCA Pro Racing, sets up the young drivers in identical factory-prepared clean diesel Jetta TDIs running on a 5 percent blend of biodiesel. That way you know it’s their driving skills and not some mechanical advantage one engine has over the other. This press release from the National Biodiesel Board points out it is the only clean diesel racing series in the United States, and Volkswagen is the only auto manufacturer participating in motorsports full time with diesel powered cars:

Houston-based HYPERFUELS is also the official fuel sponsor of the 2009 Volkswagen Jetta TDI race season, powering the series with its high performance Syndiesel® B5. That’s a blend of 5 percent biodiesel and 95 percent synthetic diesel fuel. This biodiesel blend provides a winning combination of benefits, offering the highest cetane rating of any diesel fuel on the market today and 20 percent more BTUs than conventional diesel. It has the added benefits of increased lubricity and reduced emissions from the domestically produced, renewable biodiesel component.

Clark Campbell, Motorsport Manager for Volkswagen of America, Inc. said, “The addition of Syndiesel® B5 in the Jetta TDI Cup race cars further demonstrates the feasibility of biodiesel as an alternative fuel source for American consumers, and supports the clean and green racing of the Jetta TDI Cup series. Volkswagen also supports the use of up to B5 biodiesel blends in all of its TDI clean diesel powered vehicles available at local Volkswagen dealerships today.”

By the way, Jess Hewitt, President of HYPERFUELS, is also the Chairman of the National Biodiesel Board’s marketing committee.

KL Energy Corporation, based in Rapid City, South Dakota, has announced a partnership agreement with add blue Ltda, based in São Paulo, Brazil, to build a cellulosic ethanol plant in Brazil utilizing KL Energy’s cellulosic ethanol technology for the use of sugarcane bagasse and straw feedstock. The plant will use KL Energy’s enzymatic process which will be integrated into a conventional sugarcane mill, and is expected to go online in 2010.

“KL Energy had been looking for opportunities to enter the Brazilian ethanol market. Our agreement with add blue is the perfect fit to expand our business strategy as a global cellulosic ethanol technology provider,” said Steve Corcoran, CEO of KL Energy.

In addition, add blue will be the first company in Brazil’s sugarcane industry to apply Aspen Plus®, a process simulation tool designed to enable mill owners to increase capacities, yields and profitability. add blue is in the process of successfully concluding its first full scale process optimization project at a sugarcane mill in the State of São Paulo.

“Cellulosic ethanol has great market potential in Brazil and this is the ideal moment to introduce this technology,” said Peter Gross, Founder and Managing Partner of add blue. “The cooperation with KL has begun extraordinary well in all areas: the joint optimization of KL Energy’s enzymatic process for sugarcane mills, testing of bagasse feedstock in KL Energy’s commercial scale facility, and Aspen Plus powered process optimization.”

Brazil is the world’s 2nd largest producer of ethanol. Today, more than 360 mills are operating in Brazil, all of them generating significant amounts of sugarcane bagasse, an ideal feedstock for cellulosic ethanol production. KL Energy was the first company in the U.S. to bring a commercial-scale cellulosic ethanol facility online in January 2008 based in Upton, Wyoming using woodwaste as the primary feedstock.

Public support for biofuels continues to grow in Canada according to national poll results released today. The poll was conducted by Praxicus Public Strategies and funded by the Canadian Renewable Fuels Association.

When respondents were asked if they support replacing some fossil fuels with renewable fuels like ethanol and biodiesel, 69 percent said yes. This is an improvement from last year’s results. In addition, 76 percent of respondents support the passing of a five percent renewable fuel standard by 2010 and 87 percent support federal policies that would encourage the development of next generation biofuels.

Environmental support also scored high with Canadians strongly supporting the development of environmentally friendly and viable alternatives to fossil fuels as part of an “Energy and Environment” agenda. Respondents want to see increased fuel efficiency at the top of the agenda followed by alternative fuel development. Support for both of these policies scored higher than regulating the reduction of greenhouse gas emissions.

The poll was conducted April 15-18, 2009 had a national sample of 1,000 Canadians. It has a margin or error +3.1% nineteen times out of twenty. To learn more about the poll and its results, visit www.greenfuels.org.

California has adopted the first-ever fuel requirement that is carbon-based – and that’s a good thing. “What is frustrating to the ethanol industry is that the board still went ahead and approved a program that has some really ridiculous land use data,” says Renewable Fuels Association president and CEO Bob Dinneen.

Despite the Board’s vote, Dinneen says RFA remains cautiously optimistic that its decision to form an expert work group will provide an opportunity to get the standard right. In this edition of “The Ethanol Report,” Dinneen talks about the decision, what it could mean for ethanol, and what the industry is doing about it.

You can listen to “The Ethanol Report” on-line here:
ethanol-report-31.mp3

Download audio for broadcast use here: Ethanol Report on California ARB Decision

Or you can subscribe to this podcast by following this link.

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Ethanol interests are expressing their disappointment in this week’s ruling by the California Air Resources Board (ARB) to adopt a low carbon fuel standard that uses controversial methods to determine indirect land use changes attributable to biofuels.

“Adopting this standard sets a dangerous precedent about the application of unproven science to industries across the country,” said Bob Dinneen, President and CEO of the Renewable Fuels Association. “This standard is based on flawed analysis and selectively enforced penalties against biofuels only. In unfairly penalizing ethanol, ARB is relegating California to more petroleum use as biofuels are the only viable alternative liquid fuel.”

General Wesley Clark, co-chairman of Growth Energy agrees. “This was a poor decision, based on shaky science, not only for California, but for the nation. It is unfair to selectively single out the indirect effects of one fuel pathway while ignoring the significant indirect effects of all other fuels, including petroleum. (This) decision puts another road block in moving away from dependence on fossil fuels and stifles development of the emerging cellulosic industry.”

In issuing the decision, RFA notes that the Board also voted to form an expert work group which may still provide an opportunity to improve the standard. “Forming such a group is a clear signal that several important questions regarding the science and methodology used to develop and implement this standard remain unanswered,” said Dinneen.

Despite stringent arguments by the ethanol industry, California’s Air Resources Board (ARB) yesterday approved a Low Carbon Fuel Standard that could jeopardize continued development of the advanced biofuels it is intended to promote.

According to a press release from the board, “The new standard means we can begin to break our century-old dependence on petroleum and provide California with greater energy security” said ARB Chairman Mary D. Nichols. “The drive to force the market toward greater use of alternative fuels will be a boon to the state’s economy and public health – it reduces air pollution, creates new jobs and continues California’s leadership in the fight against global warming.”

According to ARB analyses, to produce the more than 1.5 billion gallons of biofuels needed, over 25 new biofuel facilities will have to be built and will create more than 3,000 new jobs, mostly in the state’s rural areas. Production of fuels within the state will also keep consumer dollars local by reducing the need to make fuel purchases from beyond its borders.

However, the biofuels industry believes the indirect land use modeling in the standard will do just the opposite. Biotechnology Industry Organization (BIO) Executive Vice President Brent Erickson said, “Unfortunately, the rule adopted today – in particular the inclusion of indirect land use change measurements and methodology – may discourage investment in continued research and development of the same low carbon biofuels that are needed by California to meet its goals.”

California does intend to provide resources for research and development by providing “approximately $120 million dollars per year over seven years to deploy the cleanest fuels and vehicles.” Regulators expect the new generation of fuels to come from the development of technology that uses algae, wood, agricultural waste such as straw, common invasive weeds such as switchgrass, and even from municipal solid waste.

A new process could be a way to reduce greenhouse gas… and turn that gas into fuel for your car.

This story from Reuters says scientists at the Institute of Bioengineering and Nanotechnology in Singapore are using non-toxic organocatalysts to make carbon dioxide into ethanol:

In a statement, the institute said the team, led by Yugen Zhang, used N-heterocyclic carbenes (NHCs), an organocatalyst in the chemical reaction with carbon dioxide. NHCs are stable and the reaction between NHCs and carbon dioxide can take place under mild conditions in dry air, the statement said, adding only a small amount of the catalyst was needed.

“Methanol can be easily obtained from the product of the carbon dioxide reaction,” Zhang added.

The team says this process is much more efficient than previous attempts to make CO2 into a more useful product.

A pipeline in the Southeastern United States that has already tested moving biodiesel (see my Feb. , 2009 post) is now looking at sending ethanol through that same conduit.

This Reuters story says Kinder Morgan Energy Partners is looking at shipping ethanol on the Louisiana to Virginia Plantation duct:

“We are evaluating the Plantation pipeline … as the next possible pipeline system that can handle ethanol,” Jim Lelio, a renewable fuels business development director at the company, told the Alternative Fuels & Vehicles conference in Orlando on Tuesday.

Lelio said there were a number of challenges in sending ethanol on product lines and the challenges are bigger for a much bigger line like Plantation. Petroleum products can travel about 10 times as far on Plantation than on the Florida duct.

Th article goes on to say that there are concerns that the ethanol will absorb excess oxygen, causing stress corrosion cracking. But officials with the Association of Oil Pipelines say there are ways to control the problem. And that is good news for other companies, such as Magellan Midstream Partners (MMP.N) and Poet, the largest U.S. ethanol producer, expressing interest in moving ethanol through pipelines.

That familiar Wal-Mart smiley face might be glowing like the sun as the company has upped its commitment to sustainability efforts by adding solar panels to 10 to 20 Wal-Mart facilities in California.

This company press release says these panels will be in addition to the 18 solar arrays currently installed at Wal-Mart facilities in California, bringing the retailer’s total solar commitment to:

• Generate up to 32 million kilowatt hours (kWh) of renewable energy per year – the equivalent of powering more than 2,600 homes*;

“All over the state we are harnessing the power of the famous California sun and creating energy that is pollution free,” said Governor Schwarzenegger. “This project is all about taking bold action so we can see solar panels on commercial rooftops all across California while putting people to work. Today’s action helps prove that even in an economic downturn, it is possible to get serious about clean, renewable energy.”

The move nearly doubles the company’s solar use in California.

A press release by Growth Energy highlights a new study that shows greenhouse gas emissions of gasoline from foreign oil are at least twice what was previously thought when the indirect greenhouse gas (GHG) emissions related to military operations in the Middle East are taken into account. The study is published in “Biofuels, Bioproducts & Biorefining”.

The study comes as indirect GHG emissions has been made a major issue by the California Air Resources Board (ARB) as it prepares to approve regulations for its Low Carbon Fuel Standard. In a CARB staff report submitted to the board for adoption, biofuels are the only fuel that has indirect effects included in their carbon accounting. Despite this new study, no indirect effects are included for petroleum-based fuels. Critics of California’s regulations have argued that applying an indirect penalty to biofuels is unfair as it sets different standards for determining a fuel’s carbon intensity. California currently imports more than 45 percent of its oil from foreign sources.

“This research is the latest example of significant indirect sources of greenhouse gas emissions that the ARB has either overlooked or ignored. It is incomprehensible that ARB staff would suggest penalizing biofuels for indirect effects, when it is clear gasoline – ethanol’s primary competitor – has a whole host of indirect effects that have not been accounted for,” said Tom Buis, CEO of Growth Energy. “In light of this important research, ARB has to delay the adoption of an indirect penalty for biofuels until the indirect effects of all other fuel pathways have been determined so that the Low Carbon Fuel Standard is fair and equitable.”

To view the entire study, click here.

All eyes in the ethanol industry are on California today as the state’s Air Resources Board (ARB) is hearing arguments and preparing to vote on a controversial staff proposal for the state’s low carbon fuel standard (LCFS).

Hundreds of scientists, biofuel producers, including both current and next generation companies, and petroleum interests have all cautioned that ARB’s approach is far outpacing the available science to support their recommendations.

There is a glimmer of hope that all the input being provided is being heard by officials making the decision, according to a letter received this week by Growth Energy from board chairperson Mary Nichols.

Regarding concerns that the proposed LCFS is biased against corn ethanol, Nichols wrote that the ARB “firmly believes that corn ethanol will play an important role in helping California achieve the goals of the LCFS.” The letter also stated:

The LCFS supports the market for corn ethanol in California over the next decade at least. In the next few years, based on representations from the renewable fuels industry and others, we expect the market to shift to lower carbon biofuels produced from new materials using advanced production technologies. I also wanted to make you aware that I am asking the Board to take the following three additional steps to ensure that low-carbon biofuels, including low-carbon corn ethanol can continue to contribute to California’s economy, and in helping fuel suppliers reach the standard.

The board is expected to issue a ruling on Friday after hearing arguments.

Motorists in Grand Island, Nebraska now have a range of choices at the pump when it comes to ethanol blended gasoline.

Six ethanol blender pumps were unveiled last week providing flexible-fuel vehicle owners with the option of using E85, E30, E20 or the traditional E10 blend of gasoline. “If you drive a flex-fuel vehicle, you don’t have to fill up with E85 all the time,” said Jon Holzfaster, chairman of the Nebraska Corn Board. “You can choose your ethanol blend based on price, performance and availability. That’s why they’re called ‘flexible.’”

A computer sensor automatically compensates for varying levels of ethanol in the gasoline. The pumps were installed at the Bosselman’s station on Allen Drive in Grand Island. Bosselman’s plans to install more blender pumps in the state, with the next planned for stores at Ainsworth and Chappell.

President Barack Obama was in Iowa for this Earth Day, visiting a former appliance maker that has converted to make parts for the state’s burgeoning wind energy industry.

The Des Moines (IA) Register reports that the president also used the stop at the Trinity Structural Towers in Newton, formerly a Maytag appliance factory, to unveil plans to allow off-shore wind-energy production:

“On this Earth Day, it is time for us to lay a new foundation for economic growth by beginning a new era of energy exploration in America,” Obama said during a stop at a plant that produces towers for wind-electric turbines.

“It’s a win-win. It’s good for the environment. It’s great for the economy,” he said.

The move is seen as a boon to the Iowa plant that currently employs 90 full-time workers with another 40 to be added this coming fall… and maybe more, depending on how successful this initiative is.

Iowa is second in the nation in wind energy production behind only Texas.

The amount of industrial fats and oils in the U.S. has grown by nearly one-fourth over the past couple of years, fueled mostly by the growth in popularity of biodiesel.

This story in ICIS Chemical Business says the US Department of Agriculture’s (USDA) Economic Research Service (ERS) reports fats and oils used for industrial applications in the U.S. rose last year to an estimated 11.9 billion lbs, up by 9% from 2007, and by 24% from 2006:

Methyl esters, or biodiesel, was the biggest factor in the increase in fats and oils use, while applications in lubricants and similar oils also had significant spikes, the USDA reported in its 2009 Oil Crops Yearbook.

“The production of US biodiesel, which now accounts for over 75% of soybean oil’s industrial use, experienced an annual average growth rate of an astonishing 90% for most of this decade,” says Kenneth Doll, research chemist, Food and Industrial Oil Research Unit at the USDA’s Agriculture Research Service (ARS).

The article goes on to say the American numbers match the worldwide trend in industrial oils use.