Domestic Fuel

A bill was introduced in the Senate this week that would keep the Environmental Protection Agency from using non-scientific data when determining greenhouse gas emissions.

The bill introduced by Senator Chuck Grassley (R-IA) is a companion to legislation introduced last week by Collin Peterson (D-MN), the chairman of the House Agriculture Committee. Like the House bill, Grassley’s bill improves several provisions with the expanded Renewable Fuels Standard that were enacted in the 2007 Energy Independence and Security Act (EISA).

Grassley says the use of indirect land use changes to determine greenhouse gas emissions makes no sense. “It’s ridiculous to think that Brazilian farmers are looking to see what Iowa farmers are doing to determine how they run their own business, and quite frankly it’s plain unfair to farmers,” said Grassley.

The bill would make sure that greenhouse gas calculations are based on proven science by removing the requirement to include indirect land use changes, and exempts from the lifecycle greenhouse gas reduction requirements any biodiesel plants that were in operation or under construction prior to December 2007 when EISA was signed into law.

Don’t miss out on the Advanced Biofuels Workshop during this year’s Fuel Ethanol Workshop (FEW). This dynamic one-day event will focus on technology, feedstock management, market challenges, R&D activities, and near-term policy developments supporting advanced biofuels. In addition, the workshop will emphasize the provisions of the RFS and current efforts to commercialize, low-carbon, advanced biofuels technologies.

The workshop takes place on Monday, June 15, 2009 from 8:30 am – 5:00 pm. Sessions include:

•    Biobutanol, Mixed Alcohols & Biobased Hydrocarbons
•    Cellulosic Ethanol
•    Advanced Biofuels Project Development
•    Biomass Based Diesel — Bio-Oil  & Algae

Don’t miss out on learning about where the advanced biofuels industry is headed. You can register by clicking here.

There are literally thousands of registered lobbyists who regularly walk the halls of the nation’s capitol buttonholing lawmakers to talk up the benefits or detriments of some piece of legislation to their particular organization members.

Political insider publication “The Hill” made a list the week of who they consider to be the nation’s most influential association lobbyists – and two of them are with the ethanol industry. One is Tom Buis of Growth Energy who is new to ethanol but a political veteran in the agricultural arena. The other is Renewable Fuels Association president and CEO Bob Dinneen who has been ethanol’s advocate on the Hill for over 15 years.

Interestingly, the oil industry has two lobbyists on the list as well – Charles Drevna of the National Petrochemical and Refiners Association and Jack Gerard of the American Petroleum Institute. Especially interesting – no environmental group lobbyists were included on the list.

I was traveling last week and had the opportunity to rent a Toyota Prius. I jumped at the chance since I was reading, “Plug-In Electric Vehicles: What Roll for Washington,” a book authored by dozens of experts and published by The Brookings Institute. This was my first Toyota hybrid experience. However, I had driven a Ford Escape Flex-Fuel Hybrid two years ago but it has yet to come to market. It took me a bit to figure out how to actually drive the Prius, but once I did, it was an enjoyable ride and the gas mileage was great! 

So why don’t more people drive hybrids? And why aren’t there any hybrid options with a flex-fuel component (the back up for a hybrid is gas) that are actually mass produced? Or should we move to develop and adopt electric vehicles (EVs) or is the best option a plug-in electric vehicle (PEVs). Why isn’t there more government support? All of these questions are asked and answered in the this book.

While the many authors have varying ideas and opinions on the best way to bring EVs to market, there are a few points that most agree.

There needs to be more research done on the batteries (the most expensive component of hybrids and electric cars) and there needs to be an after market for these batteries.  Several authors cited an idea that was first raised by David Sandalow in his book, “Freedom from Oil,” which is the creation the “Federal Battery Guarantee Corporation”. This federal organization would, “underwrite insurance on battery life for the duration of the vehicle warranty…and gaurantee a secondary market for used battery assemblies.”
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Getting ready to take off on your summer vacation? Planning to drive 100… 200… 1,000 miles from home? How about 60,000 miles? That’s been Brian Brawdy’s 11-month long road trip fueled with biodiesel, solar and wind power… plus he captures rainwater when he can to drink.

Brawdy has been using a Ford F-350 diesel pickup truck with a camper in the bed during his cross-country adventure he has dubbed “Conservation through Exploration.” In this latest edition of the Domestic Fuel Cast, he tells me that the solar panels and wind turbine have allowed him to get truly off the grid and see some places that most people can’t even get to.

He says his mission and message have been two-fold: conservation and self-reliance.

It’s a really interesting adventure, and you can hear more about it here: DFCast-5-22-09.mp3

You can also subscribe to the DomesticFuel Cast here.

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There are many opportunities and challenges facing the renewable energy industry. To achieve long-term success, one of the greatest hurdles the industry must overcome is garnering consumer support and product adoption. This has been tough for the corn-ethanol industry in part, due to media hostility and biased reporting.

So what is the most effective way to communicate your message to ensure your technology survives in a crowded marketplace? 

This question and more will be answered in the Communicating Renewables Webinar Series. This program is designed for those involved in or seeking information about the alternative energy arena. The webinar series is designed specifically to help arm communications professionals with the tools they will need to approach, head on, the challenging task of getting the positive message about renewable energy, technologies and research out to consumers, stakeholders, policy leaders, and the media.

Topics include:

• » Web 2.0: how to harness the newest online tools to ensure your message reaches your target audience
• » Strength in numbers: building coalitions with unlikely partners to add legitimacy to your messages
• » Pit Bull Media Relations: how to pitch reporters who don’t support your product
• » Grant Writing and Fundraising 101: how to bring additional funding to your organization
• » Pitching Energy Reporters: the do’s and dont’s to securing coverage
• » Developing Effective Media Relationships: how to work with overburdened and time-starved reporters

Don’t miss this ground breaking and affordable webinar series. Most sessions are only $49. The first session is June 2, 2009. To learn more and to register go to www.CommunicatingRenewables.com.

Duke Energy continues to expand its renewable energy portfolio with the acquisition of a 70-magawatt wind power project in Pennsylvania known as the North Allegheny Windpower Project. Gamesa Energy USA was the original wind turbine manufacturer and project developer. 

This marks the first wind energy project for Duke Energy in the Eastern US; however, they have other wind projects including selling wind power to WalMart stores in Texas. The North Allegheny project consists of 35 Gamesa wind turbines, each  capable of producing two megawatts (MW) of electricity. This purchase will give the company more than 700 MW of wind-powered generation by the of 2009. 

Wouter van Kempen, president of Duke Energy Generation Services (DEGS), which is a business unit of Duke Energy that owns and develops renewable power assets, said in a company statement today, “The purchase of the North Allegheny Windpower Project in Pennsylvania marks a milestone for Duke Energy and its renewables business. This acquisition immediately expands our wind  power portfolio beyond the western U.S., where we have half a dozen projects already in operation or under construction.”

Once the project is complete, Duke energy will sell all the energy generated from the wind turbines to FirstEnergy. The wind farm is expected to be online by the end of this year.

Representatives from ethanol organizations and companies testified before the House Agriculture Committee this morning on proposed low carbon fuel standards.

The heads of three ethanol trade associations all presented basically the same message when it comes to using indirect land use changes (ILUC) to evaluate the greenhouse gas emissions of renewable fuels – it is unproven theory that should not be used.

“The architect of the ILUC theory is Mr. Tim Searchinger,” said American Coalition for Ethanol executive director Brian Jennings. “Mr. Searchinger is not a scientist or an economist. He is an attorney, who for most of his career worked at the environmental organization Environmental Defense, consistently attacking American farmers and ranchers and the public policies that ensure our stable supply of food, fiber and fuel.”

Tom Buis, CEO of Growth Energy, said they would support ILUC if it were done correctly. “First, it should apply equally to all transportation fuels. Second, it should be based on universally accepted science and economic modeling. Third, the international land use requirement should be eliminated,” Buis said. “The low carbon fuel standard proposals at the state and federal level that we have reviewed do not meet these two requirements. Oddly, science and parity have not been part of the equation – which makes us seriously question the motivation.”

Renewable Fuels Association president and CEO Bob Dinneen says the modeling being used to determine indirect land use is simply not good science. “The tremendous uncertainty and inherent lack of transparency associated with analysis of international indirect land use changes makes it extremely difficult for regulators to legitimately use these results to assign penalties for international indirect effects to the carbon score of various biofuels,” Dinneen said. “Models should be seen as learning tools, not truth machines.”

Dinneen also said they believe the EPA’s lifecycle greenhouse gas analysis of ethanol is not what Congress intended in the 2007 Energy Independence and Security Act (EISA) which specifically limited such consideration of indirect emissions to those “related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution” – not food production.

Testimony also centered on the impact ILUC calculations could have on the future development of advance biofuels. “In my view, there are not, and will not be, any “significant” indirect impacts from advanced biofuels production – the literal test required by the terms of EISA,” said Verenium president and CEO Carlos Riva. “Because there is zero commercial-scale production of such fuels today, and there are only trivial quantities of advanced biofuels production in prospect in the immediate 3-5 year time horizon. We have the time to get this right, and we must get it right.” He encouraged the panel to recommend modifications to EPA’s proposed rule.

On June 15, Sunoco Inc. is scheduled to be the owner of a former Miller brewery near Syracuse, NY. Northeast Biofuels L.P. filed bankruptcy in January this year and is now being purchased by Sunoco for $8.5 million.

Construction of Northeast Biofuels began in 2006, but it was never completed, though some production occurred last year. Northeast owes creditors $172 million, according to bankruptcy documents. The purchase price is only a fraction of the $200 million cost to build the plant.

Sunoco spokesman Thomas Golembeski said that this aquisition would supply 25 percent of the ethanol Sunoco needs to blend into gasoline to meet renewable-fuels standards. He noted that Sunoco was attracted to the Northeast Biofuels plant in Volney, NY because it was close to Sunoco’s main operations in the Northeast. Golembeski also said the company hoped to save some money in the shipment of ethanol from the Midwest, where most of the nation’s ethanol is made and where corn production is concentrated.

“We think this is a good value. We also view this as a first step into an area of possible growth for the company,” Golembeski said.

President Barack Obama has proposed that vehicle fuel economy standards be substantially increased to 35.5 miles per gallon by the year 2016… and biodiesel could be a big benefactor of that change.

This article from Biodiesel Magazine says auto industry folks, such as Dave Barthmuss, group manager for General Motors Environment and Energy Communications North America, believe the new Corporate Average Fuel Economy (CAFE) requirements would make diesel engines more attractive… and thus, make the green fuel to put in those vehicles more attractive:

“Because diesel engines have greater fuel efficiency and can operate with biodiesel—which is a low-carbon fuel—expanding this area will be considered, but our plan is to achieve the reductions with our current portfolio.”

Because diesel engines can offer fleet operators savings on CAFE requirements, it has been speculated in the short time since the new CAFE overview was published that the sector could see more business. This could be a boon for biodiesel. “There definitely has been more of a push from the current administration to implement programs that help the biofuels industries,” said Robert Dascal of New Energy Fuels in Waller, Texas. “Increased diesel fuel utilization obviously opens up more of a market for us.”

GM officials believe having one consistent fuel economy standard… instead of the hodge-podge of individual states’ regulations… will provide a more consistent platform for manufacturers to shoot for.

Get your reservation in for the next free Farm Foundation Forum, as the topic of discussion will turn to the subject of greenhouse gases and the options for agriculture.

Entitled “Carbon Policy Options and Implications for Agriculture,” the forum will be held on Tuesday, June 2:

Presenters confirmed for this Forum are Iowa farmer Varel Bailey, and Jon Scholl of American Farmland Trust. Invitations have been extended to the energy industry, the livestock industry and greenhouse gas researchers.

As usual, the National Press Club at 529 14th Street NW, Washington D.C. will be the venue for the two-hour event starting at 9 a.m. (get your coffee at 8:30 a.m.).

Make sure you RSVP to our friend Mary Thompson, Farm Foundation Director of Communication at mary@farmfoundation.org, by Friday May 29th. There is no charge to participate.

Canadian waste-to-biofuels technology company Enerkem has received North America’s first unconditional commercial permit to produce advanced biofuels, in particular, ethanol, from sorted municipal solid waste.

This company press release says Enerkem GreenField Alberta Biofuels (EGAB) received the pemit to make the ethanol at a facility in Edmonton, Alberta:

“This unprecedented project is set to change the dynamics of the waste and fuel industries by making waste – that would otherwise be landfilled – a resource for transportation fuels,” said Vincent Chornet, President and Chief Executive Officer of Enerkem. “The City of Edmonton is a leader in waste management and is now pioneering this solution which is to become a model for cities around the globe.“

In 2008, EGAB entered into a 25-year agreement with the City of Edmonton to build and operate a waste-to-biofuels facility on municipal land and to receive the City’s sorted municipal solid waste as feedstock. The City of Edmonton will supply 100,000 tonnes of sorted municipal solid waste per year. The sorted municipal solid waste to be used is the end-waste after recycling and composting. These residues would otherwise be landfilled.

Enerkem is expected to start building the $61.5 million facility by the end of this year. It will turn out about 9.5 million gallons of ethanol a year, taking 6 million tons of carbon dioxide over the next 25 years out of the environment… roughly equal to taking 12,000 cars off the road annually.

Look out corn and sugar, an untapped source for ethanol could be on its way — watermelon. According to the USDA, Agricultural Research Service (ARS) in Oklahoma has been testing ways to make the simple sugars found in watermelons into ethanol, and the USDA is now reporting some success on that front.

The National Watermelon Association began working with the USDA in 2006 to see if the 700-800 million pounds of blemished melons (and late-season melons that are not worth it for big farms to harvest) could find another life as ethanol instead of being plowed back into the ground.

ARS researcher Wayne Fish has found a way to get about 7/10ths of a pound of ethanol from a 20 pound watermelon. While it is a very small amount, know that these melons aren’t being grown as a biofuel crop; it’s just a way to get some oil independence out of leftover melons.

Algae is being seen as the next great feedstock for biodiesel… if the industry can grow the algae and extract the oil in a commercially-viable way. To that end, our friends from the National Algae Association`s Mid-South Chapter are hosting a one-day workshop on algae commercialization on June 12, 2009 at the Doubletree Castle Hotel in Orlando, Florida.

According to the group’s Web site, the workshop, entitled “Algae: The Race for New Oil,” will feature several presentations including an update on algae production in the region. There are some deadlines coming up soon if you want to submit white papers and business plans for review during the workshop:

* White papers for algae-related growth systems and support products, as well as R&D overviews must be submitted also by May 26, 2009 for review by the executive committee for potential inclusion in the workshop.

“We have seen amazing developments in algae commercialization during this past year. NAA conferences and workshops have played an important role in bringing together the history-makers who are turning `algae for biofuels` into a household phrase,” says [Tamra Fakhoorian, President of the NAA Mid-South Chapter].

Organizers expect producers, equipment manufacturers, researchers, engineers, along with members of the legal, investment and financial communities to attend. More information is available on the NAA Mid-South Chapter Web site: www.NationalAlgaeAssociation.com.

Biofuels from the perspective of India and East Africa, as well as Europe and the United States, were part of the discussion at the World Ag Congress in St. Louis on Tuesday.

Henk Joos with London-based D1 Oils moderated the panel focusing on an integrated approach to biofuels. He stressed that the purpose of the panel was to find solutions. “We can decide to go again in an immense debate on food versus fuel,” he said. “I would like to take a different approach. I would like with my fellow panelists to identify responsible ways to make food and fuel at the same time.”

Joos noted, as did several others on the panel, that biofuels alone were not the cause of last year’s dramatic increase in food prices. “Food production per capita in the world has never been higher than it is today,” he said. “It’s not necessarily about the total production of food, it’s really food distribution, getting it to the people who need it.” Not only that, he added, a great deal of food continues to be wasted around the world.

He also pointed out the food and fuel example of Brazil, which has developed a very successful sugarcane ethanol industry using only 0.3% of total acreage to produce sugarcane. “That is a perfect example of how this production can go hand in hand,” he said.

The panelists included former Secretary of Agriculture for India Radha Singh, Lee Broughton with Enterprise, Bill Horan with 25x’25, and professor Nuhu Hatibu, CEO of Kilimo Trust, East Africa. All agreed that there are ways the world can produce fuel from various feedstocks – including non-food like jatropha and algae for biodiesel – and still feed a growing population.

You can listen to the opening remarks of the panelists here: waf-09-biofuels.MP3

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