Domestic Fuel

Biodiesel producers are looking for a market for a big by-product of the green fuel they make… livestock producers need a high-quality feed. Seems like they need to find a way to get together. Scientists at the U.S. Department of Agriculture are finding a new use for the glycerin produced during biodiesel refining.

This article from the April issue of USDA’s Agricultural Research Magazine says animal nutritionist Brian Kerr, who works at the ARS Swine Odor and Manure Management Research Unit at Ames, Iowa, William Dozier, formerly in the ARS Poultry Research Unit at Mississippi State and now with Auburn University, and Iowa State University colleague Kristjan Bregendahl are looking into how to use crude glycerin as a livestock feed supplement:

Kerr led studies that examined how crude glycerin feed supplements affected swine energy use. In five different experiments, he supplemented the diets of starter pigs and finisher pigs with different levels of crude glycerin…

After feeding four levels of crude glycerin to laying hens, Bregendahl determined the AME in the crude glycerin to be 3,805 kcal/kg. He also compared feed consumption, egg production, egg weight, and egg mass (calculated by multiplying egg production and egg weight) and found no significant differences among the four groups.

The scientists say the research has been successful, as the data shows that crude glycerin is an excellent source of energy for pigs and chickens and doesn’t harm animal performance, carcass composition, or meat quality. They do caution that while the glycerin is a great feed supplement, there are some issues that could limit its use, such as small methanol and salt levels.

But overall, this could be a real win-win situation with livestock producers finding a way to cut feed costs and biodiesel producers finding a way to add value to their products.

According to a POET press release, POET Biorefining in Bingham Lake, Minnesota, has used a new technology wich will eliminate water discharge providing a more efficient way to produce ethanol.

The 35 million gallon per year facility currently uses less water than average plants. Bingham Lake facility used 3.42 gallons of water to produce one gallon of ethanol. With zero-liquid discharge, that is cut by 23 percent, to an estimated 2.64 gallons of water per gallon of ethanol.

“This process is yet another way POET is working to continue making ethanol production more efficient,” POET CEO Jeff Broin said. “Zero-liquid discharge technology benefits the plant, the community and all the area water users.”

Additional POET facilites use innovative ways to cut water use including: Corning, Iowa; Portland, Indiana; and Big Stone, S.D. POET plants on average use 3 gallons of water per gallon of ethanol.

A landfill in Dallas, Texas will soon be the source of renewable biomethane that will be burned to create electricity.

This story posted on the Environmental Protection Web site says that Clean Energy Fuels Corp. has inked a 15-year deal through its subsidiary, Dallas Clean Energy, to sell the biomethane produced at the McCommas Bluff landfill:

Beginning this month, the biomethane will be sold at fixed prices that increase in 2010 and 2011 and then remain fixed over the remainder of the agreement. The price for the “green” gas was not disclosed but represents a significant premium to the prevailing price for conventional natural gas.

“This gas sale agreement validates selling renewable biomethane as a valuable, low-carbon fuel. It provides Clean Energy with a sound, long-term revenue stream and also supports expansion of the plant’s production capacity for additional gas sales, including potential use as vehicle fuel,” said Andrew J. Littlefair, Clean Energy president and chief executive officer “Many of our largest customers are showing interest in biomethane for their fleet vehicles as it is one of the best alternative fuels to meet new Low Carbon Fuel Standards coming in California and other states.”

The McCommas Bluff landfill gas operation is among the biggest landfill gas operations in the country. Officials estimate it will continue to produce quality methane gas for 30 years after its closing in the year 2042.

The nation’s leader in biodiesel making and making biodiesel plants has a new leader of its own.

Biodiesel Magazine reports that Renewable Energy Group’s Daniel J. Oh, Chief Operating Officer, is taking over as President of the Iowa-based company:

Mr. Oh takes the reins from Nile Ramsbottom, who has served as Renewable Energy Group’s president since the company’s incorporation in 2006. Mr. Ramsbottom’s leadership helped launch REG as a premier producer and marketer of high quality biodiesel. In the nine years Mr. Ramsbottom has served at REG and its predecessor West Central Cooperative, the company’s biodiesel business has grown from a 1 million gallon-per-year batch plant to a network with the more than 300 million gallons of annual production capacity. Mr. Ramsbottom has agreed to forgo full retirement to help strengthen REG’s global presence. The new global sales position will be based in St. Louis.

Of the transition Renewable Energy Group Chairman and CEO Jeffrey Stroburg said: “Our board of directors appreciates Mr. Ramsbottom’s willingness to continue in this new and critical role as he shifts from his position as REG’s president and prepares for a personal and professional transition after his 65th birthday in May. In this new position, Mr. Ramsbottom will continue pursuing relationships and business with national and international biodiesel customers and large feedstock producers.”

Jeffrey Stroburg stays on as REG’s Chairman of the Board and Chief Executive Officer, with Jeff Pattison remaining as Chief Financial Officer.

The 25th anniversary of the Fuel Ethanol Workshop (FEW) is fast approaching – June 15-18, 2009 in Denver, Colorado. Two awards will be presented this year to outstanding industry professionals: The High Octane Award and the Award of Excellence.

The High Octane Award is chosen by the industry and honors a person who has helped the ethanol industry mature and progress over the years. In general, the award is presented to an individual who has made a big impact on the ethanol industry. BBI will then announce the nominees and the industry will vote to determine the winner.

People can also submit nominees for The Award of Excellence. A qualified nominee is an individual who has published papers and/or made significant research, technical advisory and development contributions in the ethanol industry. The award winner will ultimately be chosen by committee, led by Dr. Kevin Hicks.

Deadlines for submitting nominations is May 1, 2009, and awards will be presented during the general session. For more information visit www.fuelethanolworkshop.com.

Water usage for ethanol production varies dramatically depending on the state, according to a new University of Minnesota study.

The study, published in this week’s edition of the journal Environmental Science and Technology, is the first to compare water use in corn-ethanol production on a state-by-state basis. The authors used agricultural and geologic data from 2006-2008 to develop a ratio showing how much irrigated water was used to grow and harvest the corn and to process it at ethanol plants.

Among the major ethanol-producing states, Iowa uses the least water, with about six gallons of water used for each gallon of ethanol. On the other end of the spectrum, California – which produces only a tiny fraction of the nation’s ethanol but irrigates most of its corn – uses about 2,100 gallons of water per gallon of ethanol.

The study “highlights the need to strategically promote ethanol development in states with lower irrigation rates and less groundwater use,” the authors say. The study was funded in part by the U.S. Department of Energy and by the Legislative Citizens Commission on Minnesota Resources.

The need for renewable fuels to replace fossil fuels is becoming more and more of a global necessity.

This edition of the “Ethanol Report” features information about the Global Renewable Fuels Alliance (GRFA) and the organization’s goals for providing scientific information about life cycle assessment and greenhouse gas reduction, as well as the importance of expanding biofuels production for developing countries. Comments are from GRFA spokesman Bliss Baker, International Energy Agency (IEA) report author Don O’Connor, and Canadian Renewable Fuels Association president Gordon Quaiattini.

Read the entire report here.

You can listen to “The Ethanol Report” on-line here:
ethanol-report-30.mp3

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

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

Carbon dioxide has become an enemy of the Earth for its role in contributing to global climate change. One man wants to stop this unfair protrayal of “our friend carbon”. Dr. Norman Airs, the executive director of The Carbon Awareness Institute is on a crusade to save the carbon cycle.

He has appeared on a TV show produced by My Emissions Exchange several times and he wants another chance to defend the carbon cycle. Check out his video and maybe you’ll want to save the carbon cycle too.  BTW – if you defend CO2 you’ll be saving the planet just in time for Earth Day….

As so many ethanol plants have closed in recent months, invester-owned ethanol start-up One Earth Energy LLC is planning to begin production on June 11, 2009. The 100 million gallon plant is located near Gibson City, Illinois.

One Earth Energy, LLC officially organized as an Illinois based Limited Liability Company in November 2005. By acquiring ethanol mills on the cheap, big oil and other players could undercut firms such as One Earth Energy, which spent $166 million to build a plant for distilling corn into fuel.

“The challenge to compete with those new ownerships is they have a lower cost of production because they have less debt,” said Steve Kelly, president of One Earth Energy. Heavy debt loads and historically high corn prices have been lethal to independent ethanol firms.

According to the Los Angeles Times, before launching One Earth Energy, Steve Kelly worked down the road for the Alliance Grain Co. He estimates that the co-op stored about 3 million bushels of corn when he joined it in 1988. The figure reached almost 30 million bushels in 2005, so Alliance needed an outlet for its corn, and One Earth Energy was born.

“It always made sense to me to have the vertical integration, be part of that consumption chain after it leaves the farmer and the storage point,” said Kelly, noting that Alliance will supply One Earth Energy with corn.

The city of the future will rely on the absolutely oldest source of power in the solar system… the sun.

Plans for Babcock Ranch, a 19,500-home city powered entirely by zero-emission solar energy northeast of Fort Myers in Southwest Florida, were recently announced by developer Kitson & Partners as the world’s first city running only on the power of the sun. This Miami Herald story has details:

It will include the world’s largest photovoltaic power plant, which will be operated by Florida Power & Light. Buildings will be certified green and surrounded by thousands of acres of open space.

The solar panels will sit on 350 acres within the development. More than half of the city’s 17,000 acres will be permanently protected as greenways and open space, the developer said, and will adjoin the 73,000-acre Babcock Ranch Preserve that has been purchased by the state.

The city is expected to cost around $300 million to build, and Florida Power & Light says it will add just 31 cents to the average consumer’s bill to pay for it. Considering the city is expected to add 20,000 permanent jobs plus all of the thousands of temporary jobs during construction, it seems like a great investment to me. And besides, you can only use all that sunshine for just tanning for so long!

The State of Iowa is making a major investment to grow algae for biofuel at a southwest Iowa ethanol plant.

Fox News has details:

The 18-member Iowa Power Fund Board approved the $2,085,000 grant this week to assist in the commercialization of algae production technology.

Kevin Lynch, the chief executive of BioProcessAlgae, says the grant will fund an algae production project at an ethanol plant in Shenandoah, Iowa. The company will test its photobioreactor design there.

Officials expect that if the project is commercially viable, the money will be paid back. Now there’s a REAL stimulus package.

A Longview, Texas-based maker of terminal tractors has introduced a hybrid electric version of the vehicle.

This press release from Capacity of Texas announces the PHETT… Pluggable Hybrid Electric Terminal Tractor:

“As a leader in the terminal tractor industry, we are pleased to offer our Pluggable Hybrid Electric Terminal Tractor. Developed and built in Longview, TX, through a grant from the Texas Environmental Research Consortium and the Texas Commission on Environmental Quality, this product will change perceptions and reduce operational expense of terminal tractors. The PHETT(TM) will also reduce emissions at all Ports, Intermodal Yards and Warehousing/Distribution Centers not only in North America, but throughout the world,” stated Phillip Ford, President of Capacity of Texas.

The PHETT is a charge sustaining series hybrid that utilizes a constant and efficient rate generator to supply power, reducing fuel consumption by 60% and audible db by 30%. With the lowest operational cost per hour, the PHETT also incorporates an AC traction motor and on-board grid-charging system. Integration and introduction of this technology into the flagship Capacity Trailer Jockey(R) line included review and redesign of front & rear axles, steering system, frame structure, suspension and isolation of components as well as adjustments for cab interior space requirements; all resulting in optimum performance and design for terminal tractor applications.

Capacity of Texas is the biggest American owned manufacturer of terminal tractors in North America.

Although the ethanol plant said it needed $10 million to stay in business just four months ago, Show Me Ethanol in Carrollton, Mo. has reached a loan agreement and will afloat after raising $5.9 million from shareholders.

The group that financed the construction of their 55 million gallon per year plant, FCS Financial, formed another agreement with the ethanol plant. Show Me owed its biggest shareholder, Ray-Carroll Grain Growers of Carrollton, $15.5 million on forward purchase contracts. Ray-Carroll agreed to cancel $2 million of that debt, accept a $1.5 million payment and convert the remaining $12 million into a promissory note. Show Me was able to count the $2 million in debt cancellation as part of the $5.9 million in new capital.

Show Me Ethanol posted a net loss of $18.98 million just two weeks ago, including a $14.1 million loss on forward contracts to purchase corn.

The University of Georgia will soon be collaborating with Ceres, Inc. to study high yielding switchgrass techniquest. The crop can yield 6 to 10 dry tons in the Southeast, is considered an ideal product for biofuels.

“This project allows us to expand our internal and collaborative plant breeding activities in a region where we believe the industry will have a strong presence,” said Ceres plant breeding director Jeff Gwyn, Ph.D. “There’s a lot of headroom for improvement and I’m confident that working together we can continue to drive up yields at a robust pace,” he said.

A press release from Ceres notes that plant breeders, agronomists, support scientists and the Noble Foundation will collaborate on this project to develop improved seed varieties.

In December, Ceres launched the first switchgrass and sorghum varieties developed for bioenergy, which are sold under the company’s Blade Energy Crops . Ceres has established the largest field-trial network for dedicated energy crops in the United States, including more than a dozen leading universities and institutions.

The oil loving Wall Street Journal (WSJ) published an article today about the “peak of gasoline”.  Many analysts are predicting that with the rise in biofuels production, fuel economy and gasoline prices (although they are holding steady around $2.00 per gallon on average) and the current depressed state of the economy, we’ve seen “peak” gasoline use, at least in the U.S.

According to information released by the U.S. Energy Information Administration (EIA), drivers pumped 371.2 million gallons of non-ethanol gas every day in 2007. EIA anticipates a 6.9 percent decrease in 2009 to 345.7 million gallons, citing reduced gasoline demand and increased use of ethanol blends. Although some sources report that gasoline use today is higher than last summer, the EIA predicts that future gasonline demand will never exceed 2007 levels.

In addition, WSJ reports that, “Demand for all petroleum-based transportation fuels — gasoline, diesel and jet fuel — fell 7.1% last year, according to the EIA. This is the steepest one-year decline since at least 1950, as far back as the federal government has reliable data.”

This is great news for ethanol producers, especially as there are an estimated 300 million gallons of cellulosic ethanol ready and waiting to enter the fuel market. The historical barriers to an increased market for ethanol have been lack of infrastructure for E85 and mid-level blends and the need to raise the ethanol blend wall. Last month the ethanol industry joined together to file an E15 waiver, which is currently under EPA review and there is talk about the possiblity of biofuels infrasture funding from the federal government.

In the meantime, it appears that Big Oil is taking the decrease in gasoline production to heart and is activiely pursuing entry into the biofuels market.