Domestic Fuel

Verenium Corporation today announced a new enzyme for the food and beverage industry called Veretase.  This enzyme was developed for the liquefaction of starch-based mashes and slurries specifically for use in food and beverage applications. The enzyme improves saccharification and fermentation efficiency and consistency.

“Verenium is pleased to introduce this unique enzyme specifically designed to improve the economics and efficiency in the sweetener and beverage alcohol production market,” said Janet Roemer, Verenium’s Executive Vice President, Specialty Enzymes Business. “Veretase will offer customers greater operational flexibility in the plant reducing processing costs considerably.”

The company also produces specialty enzymes for the cellulosic biofuels market and is currently engaged in a joint venture with BP to develop and bring to cellulosic ethanol to market.

BP has been marketing itself as “Beyond Petroleum” for several years now but it appears that Valero is vying for the top spot in “green energy”. Valero has now invested in Terrabon, a company that is developing technology to produce “green” gasoline through the conversion of trash from landfills to energy. Terrabon’s main technology for biofuels is MixAlco, an advanced bio-refining technology that converts inexpensive, non-food biomass into a “biocrude” that is then converted into chemicals and fuels such as ethanol and gasoline.

Just last month, Valero  became the largest player in ethanol ownership with its purchase of seven VeraSun Energy plants. Last year the company invested in two cellulosic companies Solix, a Fort Collins, Colorado-based company that makes biofuels from algae, and this past January, invested in ZeaChem, a Lakewood, Colorado-based company also using biomass to produce cellulosic ethanol.

Speculation about the affects of Valero’s major entry into the biofuels market is rampant. InfoCast recently hosted a Webinar, “Who Will Benefit from the Biofuel Industry’s Current Distress?” that in part discussed the industry impact of Valero’s ownership of ethanol plants. But the question is much broader than Valero’s impact. The bigger question is which of the seven sisters (Big Oil) will be next to enter the biofuels marketplace? Shell is already invested in cellulosic ethanol and Marathon has owenership in several ethanol plants. I’m not placing my bet on ExxonMobil.

Wind turbines churning off the East Coast have the potential to replace nearly all of the coal-fired power plants. That bold pronouncement comes from U.S. Secretary of the Interior Ken Salazar during a recent public hearing in Atlantic City, New Jersey.

EnvironmentalLeader.com has details:

Salazar said at the public hearing that wind resources along the East Coast can generate 1 million megawatts (MW) of power, although he could not estimate how many windmills might be needed to generate this amount of power, according to the AP report. This is equivalent to 3,000 medium-sized coal-fired power plants, or nearly five times the number of coal plants now operating in the United States, according to the Energy Department.

Salazar also told participants at a recent summit meeting of 25X’25 America’s Energy Future that U.S. offshore areas hold enormous potential for wind energy development in all coastal metropolitan centers, and the wind potential off the coasts of the lower 48 states could exceed electricity demand in the U.S.

According to the National Renewable Energy Lab (NREL), there’s already more than 1,000 gigawatts (GW) of potential wind power off the East Coast with a total of more than 2,000 megawatts of offshore wind projects currently proposed in this country.

While the biodiesel production business has been growing in the U.S., it has also grown in popularity overseas, especially in Southeast Asia. That has led a group representing commerce interests in Indonesia to visit a Southern California biodiesel equipment manufacturer.

This article from Biodiesel Magazine says SRS Engineering Corp. is at the center of potential trade agreements between the two countries:

Discussions were made regarding the feasibility of a biodiesel plant being erected in Indonesia, along with the possibility of the exportation of palm oil to the U.S., as Indonesia is now the largest producer of palm oil in the world.

“I was very impressed with the Indonesian delegates and their desire to create strong trade agreements between the two countries,” said Clayton Hawranik, President/CEO of SRS Engineering, “there seemed to be an obvious connection with what we do in the biodiesel industry and the Republic of Indonesia being the number one producer and exporter of palm oil. Our brief meeting uncovered a wealth of opportunities between our countries”

We’ll have to see what some of the commodity groups have to say about the potential of foreign palm oil replacing American feedstocks, but it’s pretty cool that there’s a growing market for U.S. know-how overseas.

Two teams of high school students have taken top honors in the Lexus Eco Challenge, sponsored by book mega-supplier, Scholastic.

About 50 teams of teens took part in the national environmental contest with a group from Thornbridge High School in the Chicago suburb of Dolton and another group from Plantation, Florida (just north of Miami) picking up the top $50,000 prize each. From the Scholastic Lexus Eco Challenge Web site:

Thornbridge BioDiesel, Illinois
Team: Garrick, Darryl, Terry, Lamar, Tramel, Jay, Gabrielle
Thornbridge BioDiesel’s teacher advisor Brian Sievers and his team built a biodiesel processor, held a community oil drive, hosted a number of popular presentations, and embarked on a media blitz about their project that resulted in MySpace and YouTube videos, as well as a number of appearances in local press outlets!

EcoGeeks, Florida
Team: Amanda, Jason, Shannon, Natasha, Ross, Jhon, David, Kevin, Shawn
Teacher advisor Allan Phipps and his team focused on aiding the hurricane relief efforts in Haiti. The team sent solar ovens, low-impact “green cuisine” recipes, and seedlings to Haiti’s large number of struggling refugees.

Michigan is ramping up to be a leader in green jobs. Global Wind Systems, Inc. recently announced that it would build a full-scale wind turbine assembly plant in Novi, Michigan. Founded in September of 2008, Global Wind Systems will hire 250 people, most of whom had previously worked in come capacity in the failing auto industry. Interviews are scheduled to begin in May and to date, the company has received several thousand resumes.

Global Wind Systems will be the first wind manufacturer of delivery-ready, large-scale wind turbines in the state, but not the first company dedicated to producing wind turbines in Michigan. Mariah Power, a producer of wind turbines for homes and businesses, is hosting a grand opening event at its wind turbine manufacturing facility in Manistee, Michigan on April 20th.  The 74-ton turbines that will roll off the Global Wind Systems assembly line will be used by utility companies and wind farm developers for generating commercial wind power.

The Energy Revolution report released by Greenpeace anticipates that the transition to clean energy will create more than seven million net jobs by 2030. The state of Michigan is poised to attract many of these jobs through state incentive and tax programs as well as a new state mandate that requires Michigan utilities to generate at least 10 percent of the state’s electricity from renewable sources by 2015.

Chris Long, founder and CEO for Global Wind Systems once built and designed plants for the auto industry. He told The Detroit News that production is expected to begin in the fall of 2009 and hopes the plant is running at full capacity by the following spring. Once the plant is running full steam, Long anticipates that they will turn out 400 turbines per year valued at more than $8 billion.

Missouri’s ethanol producers are reaching out to consumers with a new website and print ad campaign.

The Missouri Renewable Fuels Association (MoRFA) website contains research and information about ethanol, links to other renewable fuel articles and an overview of the state’s farmer-owned biorefineries. Also featured on the new site are three print ads currently running in many Missouri newspapers that address common misconceptions and promote the benefits of ethanol.

“The MoRFA’s new Web site, combined with an effective informational campaign, highlights how ethanol is helping rebuild our economy and local communities by keeping dollars here at home,” said Gene Millard, MoRFA president and chairman of Golden Triangle Energy Cooperative, a farmer-owned ethanol plant in Craig, Mo.

MoRFA brings together leadership from the state’s six farmer-owned ethanol plants to foster the development of renewable fuels in Missouri. In partnership with the Missouri Corn Growers Association, MoRFA members include POET Biorefining – Macon, Golden Triangle Energy Cooperative, Mid-Missouri Energy in Malta Bend, Mo., POET Biorefining – Laddonia, LifeLine Foods in St. Joseph, Mo., and Show Me Ethanol in Carrollton, Mo.

American fighter jets, bombers and cargo planes might soon be displaying a green jet stream… at least metaphorically.

Greentech Media reports that the the Defense Advanced Research Projects Agency (DARPA) has already let a $19.6 million contract to Logos Technologies to come up with a way to make JP-8… the military’s all-around fuel primarily used as a replacement to diesel… out of cellulose. And if it is successful, the contracts could grow for Logos and other defense companies and universities:

Arlington, Va.-based Logos could see its DARPA cash flow grow to $35 million if “all phases of the development program are complete,” the company’s press release stated. The company has 21 partners on the project, including universities and companies…

Many feedstocks are being considered. San Diego-based Science Applications International Corp. (SAIC) won a similar research contract from DARPA in January, one with the potential to grow to $25 million, aimed at finding ways to turn “agricultural and aquacultural feedstocks.”

Aquaculture translates into algae-biodiesel… something civilian airlines have also been working on. Officials say they just need to make the production of algae oil as a feedstock more cost effective to meet that DARPA $3-a-gallon-and-below goal.

One of the big knocks on hydrogen fuel-cell vehicles has been the availability of refueling stations… or more accurately, the lack thereof. But that could be changing in California.

This article from RedHerring.com says the state’s Air Resources Board is handing out $6.8 million in grants to build four hydrogen refueling stations, doubling the amount of hydrogen available for California drivers:

ARB Chairman Mary Nichols said in a statement that the grants will help cultivate the “burgeoning industry” for fuel-cell vehicles and as well as provide the state with more clean power.

Another grant recipient, the San Francisco Airport, plans to build a hydrogen refueling facility that can dispense 120 kilograms per day and fuel passenger cars and busses operated by transit agencies throughout the greater San Francisco Bay Area.

Mebtahi Station Services received a grant for its Harbor City filling station, while Shell Hydrogen will get money to add a refueling facility to a Newport Beach gasoline station.

A tax incentive designed to encourage the use of biodiesel has moved forward in the Rhode Island State Legislature.

The Providence (RI) Journal reports the state’s Senate Finance Committee gave unanimous approval to Sen. Louis P. DiPalma’s measure that would exempt blended biodiesel fuel from the state’s 30-cents-a-gallon motor fuel tax:

Current law generally exempts from the tax only 100 percent biodiesel fuel. The bill would also exempt biodiesel fuel that is mixed with regular diesel.

The vote occurred shortly after a hearing on the bill, S 0525, which advocates said would help local biodiesel manufacturers and distributors. Paiva Weed and Connors joined other committee members to vote in favor of the measure, which now goes to the full Senate.

According to the National Biodiesel Board, about half of the states now offer either tax credits, exemptions or both for biodiesel.

A caravan of more than than 24 alternative fuel vehicles will leave from Raleigh, NC on April 15 at 3:30 p.m. and travel across the state. The Clean Fuel Advanced Technology program at the NC Solar Center is leading a clean transportation technology drive across North Carolina. The tour will continue with stops in Greensboro and Charlotte on April 16.

VIP drivers include: Congressman Bob Etheridge, U.S. Ambassador (retired) James Cain, NC Cabinet Secretaries: Gene Conti, Dee Freeman, Britt Cobb and Triangle Transit Authority Director, David King and over 24 alternative fuel/advanced technology vehicles including: E85, neighborhood electric, plug in hybrid, natural gas, and propane vehicles.

Sponsors of the tour include: NC Department of Transportation, NC Division of Air Quality, NC State Energy Office, Environmental Defense Fund and Novozymes of North America. More information visit: www.ncmobilecare.org.

As ethanol producers push for an increased amount of ethanol in gasoline, Agriculture Secretary Tom Vilsack says the government should move quickly for this allowance. Both Secretary Vilsack and Speaker of the House Nancy Pelosi spoke to the National Farmers Union annual convention in Arlington, Va.

“We can, we believe, move fairly quickly to move the blend rate to 12 or 13 percent in the interim,” said Vilsack. An increase in the ethanol additive can boost the demand for the product as much as 6 billion gallons a year. However, tests still need to be done on automobiles and small engines to be sure the increase of ethanol is not harmful.

Adora Andy, the EPA’s press secretary, said in a statement that the agency will review the request and “act based on the best available science.” The EPA is the reigning power on lifting the cap.

House Speaker Nancy Pelosi is also in support of the increase in the ethanol additive. She added, “It seems to me we should be able to do that.”

Duckweed, a small aquatic plant, can help clean up energy waste and be converted into ethanol the same way as corn ethanol.

Researchers from North Carolina State University noted that gowing duckweed on hog wastewater can produce five to six times more ethanol than that of corn. They also say that producing ethanol into duckweed could be faster and cheaper than corn produced ethanol.

“We can kill two birds — biofuel production and wastewater treatment — with one stone: duckweed,” said Professor Jay Cheng.

Duckweed captures the nutrients in the wastewater for growth and preventing their release into the environment. In other words, Cheng says, “Duckweed could be an environmentally friendly, economically viable feedstock for ethanol.”

While most ethanol companies blame financial troubles on high commodity and energy prices, Aventine Renewable Energy Holdings, Inc. has thrown a new reason into the ring — blaming its bankruptcy on the availability of excessive Renewable Identification Number credits or RIN.  RINS are used by the EPA to track how much ethanol is being blended into the the fuel supply. Oil companies were to have reported their ethanol use to the EPA by the end of February.

Typically the ethanol marketer (Aventine) assigns the RIN and can then sell the ethanol with or without the RIN. The value of the RIN sold separately fluctuates from as low as 2 ½ cents to as high as 16 cents per gallon.

In a company statement released earlier this week, Aventine’s President and CEO, Ron Miller, was quoted as saying, “Ethanol demand has also been negatively affected by refiners and blenders using excess renewable identification numbers (“RINS”) to help meet their renewable fuels standard obligations instead of purchasing actual gallons of ethanol.”

RIN trading has become flush with speculators causing concern that these excess credits may instead be the result of fraud and duplication. At present, EPA is planning to address this issue in RFS-2 which is now scheduled to be released and in effect in early 2011 and is looking to create a Moderated Transaction System (MTS) that would serve as the federal registry for RINS.

Today, there is a voluntary RINS registration system called RINSTAR that is run by Clean Fuels Clearinghouse. In a release today, company President Clayton McMartin said, “We are able to safeguard our members against invalid RINS by taking proactive measures thorough our patent pending certification processes.” 

As more ethanol is blended into the fuel system to meet environmental and domestic energy goals the controversy and market uncertainty surrounding the buying and selling RINs is expected to intensify.

The April World Supply and Demand report out today from USDA lowers ending stocks for corn, but keeps corn use for ethanol the same.

Corn ending stocks were cut by 40 million bushels “as higher expected feed and residual use more than offsets a reduction in food, seed and industrial use.” Food, seed, and industrial use was lowered 10 million bushels but ethanol remained unchanged at 3.7 million bushels.

However, market analyst Mike Krueger from The Money Farm says that may change next time around. “Ethanol production has been slightly stronger than people expected,” Krueger said during a conference call for the Minneapolis Grain Exchange today. “I think it will depend on how quickly these VeraSun plants get back on line and running. We still have four months or so left in the marketing year for that to happen.”

The lower ending stocks for corn means higher projected prices for the year. USDA is now forecasting the 2008/09 season-average farm price for corn will be $4.00 to $4.40 per bushel, up 10 cents on both ends of the range. This compares with the 2007/08 record of $4.20 per bushel.