Domestic Fuel

California utility PG&E and BrightSource Energy have signed a deal that will expand the two companies’ solar power agreement.

This story from Fortune Magazine says the utility will buy 1,310 megawatts of carbon-free electricity to be generated by seven giant solar power plant projects – the world’s biggest solar deal to date. This latest deal comes after BrightSource made an agreement in February to provide 1,300 megawatts of power to Southern California Edison:

PG&E had previously signed a power purchase agreement with BrightSource in April 2008 for 500 megawatts with an option to buy another 400 megawatts. The new 1,310-megawatt deal will supply enough electricity to power about 530,000 homes in California.

Those are impressive numbers, but not an electron of electricity has been produced yet. BrightSource now faces the challenge of licensing, financing billions of dollars in construction costs and then building nearly a dozen large-scale solar power plants to meet a 2016 deadline for the Southern California Edison (EIX) contract and a 2017 completion date for PG&E (PCG). (The big wild card is whether transmission lines will be available to connect the power plants to the grid.) The first PG&E project is set to go online in 2012 with the first SoCal Edison solar farm to begin generating electricity the next year. Those first two power plants are part of a 400-megawatt complex BrightSource is planning for the Ivanpah Valley on the California-Nevada border.

The article goes on to say that the Oakland, California-based BrigtSource now holds more than 40 percent of the big solar contracts in the U.S.

Back in January, I told you about how a New York-based renewable energy company had announced plans to move biodiesel and ethanol out of the Port of Milwaukee.

Now, this story from Milwaukee’s BizTimes.com says Innovation Fuels has started selling biodiesel to folks from around the world out of the port on Lake Michigan:

The company’s 312,000-barrel (45,000 metric tons) capacity terminal at the Port of Milwaukee is located on ten acres. The terminal is the first in the country that is totally dedicated for the sale and distribution of renewable fuels, the company said.

“The commencement of selling biodiesel via our Milwaukee terminal will significantly lower the cost of our biodiesel to customers in the Great Lakes due to lower transportation charges,” said Innovation Fuels CEO John Fox. “We also bring along a mindset of quality at a reasonable price, which is backed by our BQ9000 credentials as a marketer and producer in the Northeast United States. It is highly advantageous for us to be marketing Milwaukee based biodiesel to customers in Milwaukee and greater Wisconsin as well as to Chicago and the entire Midwestern region.”

Innovation officials say that this is just the beginning of using the Milwaukee port as a biofuels hub.

A joint venture by ConocoPhillips and Tyson that would have the fuel giant turning the meat giant’s animal fat waste into biodiesel has folded because of the halving of a key federal tax credit.

This story from CNNMoney.com says the Borger, Texas refinery was idled last fall during changing economic conditions and government policies:

A spokesman for Tyson Foods Inc. (TSN), Conoco’s partner in the project, said production could resume if government incentives are reinstated.

“As a result, the project was no longer economically feasible and was put on hold last fall,” said Tyson spokesman Gary Mickelson. “Tyson and ConocoPhillips continue to discuss ways to resume the project. However, until the full tax credit is reinstated, production will likely remain suspended.”

When the refinery was first opened, the hope was that it would make 175 million gallons of biodiesel a year… coming at a critical time when the push for renewable energy sources was gaining strength in the face of skyrocketing petroleum prices. Now, there are concerns that this will be a sign that other major oil won’t hesitate to halt their renewable fuel efforts if they turn unprofitable… especially if they don’t have government help.

Progress on what could become the country’s first commercial facility in the United States able to test wind turbine blades longer than 50 meters should take a big step forward with some help from a $25 million federal grant.

This story in the International Business Times says the U.S. Department of Energy is giving the state of Massachusetts the money for the Massachusetts Wind Technology Testing Center, set to start construction in September and to be completed by the end of 2010:

“Testing the next generation of wind turbines here will make Massachusetts a hub for the fastest-growing energy source in the world,” [Massachusetts Governor Deval Patrick] said.

Improving technology for longer blades will be especially useful for large-scale offshore wind power projects, the department said.

Officials believe the facility will help move wind turbine technology along, helping reduce production costs.

Iowa-based Renewable Energy Group Inc. has signed a deal with three Midwest biodiesel plants to consolidate under the REG name.

Biodiesel Magazine reports that Western Iowa Energy with a 30 MGY refinery in Wall Lake, Iowa; Central Iowa Energy’s 30 MGY Newton, Iowa facility; and the Danville, Illinois Blackhawk Biofuels, LLC, a 45 MGY facility in Danville, Ill., are part of the deal:

Ownership of the operations of all four companies will be consolidated in a new holding company to be named Renewable Energy Group, Inc. The consolidated company will be owned by the current members of the three acquired companies and current Renewable Energy Group (REG) investors, including Bunge North America, ED&F Man, Natural Gas Partners, NGP Energy Technology Partners, US Renewables Group (USRG) and West Central Cooperative. The transaction is subject to approvals by the shareholders of all four companies and to other conditions, including customary regulatory approvals.

REG’s chairman and chief executive officer Jeff Stroburg cited demand by major petroleum distributors and oil refiners as a key factor in the decision to move forward with plant consolidation. “As the Renewable Fuels Standard (RFS) takes effect and our nation moves toward energy reform, the distillate market is demanding technical expertise, dependable supply, more efficient distribution and creative pricing options from major biodiesel partners,” Stroburg said. Under the 2007 Energy Independence and Security Act, the RFS calls for 500 million gallons of domestic biodiesel consumption ramping up to 1 billion biodiesel gallons in 2012.

REG management believes the consolidation will help the company by bringing greater economies of scale in biodiesel production.

Senator Chuck Grassley (R-IA) has received a response from the Environmental Protection Agency explaining the decision to include indirect land use change in calculating estimates of lifecycle greenhouse gas emissions for biofuels, but the senator still believes it should not be a factor in the Renewable Fuels Standard.

According to the letter from EPA acting assistant administrator Elizabeth Craig, the agency is required under the Energy Independence and Security Act of 2007 to include indirect land use in its estimates of the carbon footprint of biofuels. “The statute specifically includes ‘significant emissions from land use changes’ within the concept of indirect emissions,” she said. “Excluding indirect land use changes – whether domestic or international – from the analysis would depart from both the statutory text and from the scientific thrust of the requirement of lifecycle analysis.”

During his weekly conference call with farm reporters on Tuesday, Grassley said he had not yet received a response, but believes that indirect land use “doesn’t meet the common-sense test.”

“Because, first of all, there’s no science behind it and EPA ought to only be making their decisions based on science,” Grassley said. “And then you get into the ridiculous situation that somewhere around the world somebody’s waiting to plow up an acre of virgin soil just because they’re waiting to see if Chuck Grassley sells a little more corn for ethanol. I think that’s a ridiculous combination that doesn’t face the real-world test.”

Grassley admitted that he didn’t think the land use issue was “a big deal” when he voted for the energy bill. “Now, obviously, it could be a big deal if it’s used to make ethanol look less environmentally positive or even environmentally negative. And taking it out would be the only way to make sure it wasn’t used,” he said.

By “taking it out” Grassley means Congress would have to change the law unless EPA decides not to use indirect land use calculations because of a lack of scientific consensus.

A big rig running on natural gas… a propane-fueled trimmer… gas from a wastewater treatment plant burned to make electricity… these are just some of the projects the Environmental Protection Agency has recognized in its annual Clean Air Excellence Awards Program.

For the ninth year, EPA is honoring 15 recipients from across the United States for their environmental achievements in community action, education, and science and technology. These innovative air quality programs provide environmental benefits and create green products and jobs.

“Each year, our Clean Air Excellence Award winners offer amazing new examples of how we keep our air safe and clean,” said EPA Administrator Lisa P. Jackson. “This year’s winners have built on that tradition of innovation to show what is possible in protecting human health and the environment.”

Here are some of the winners using renewable energy projects (from the EPA’s Web site):
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The ethanol industry has spoken and the Few Ethanol Workshop (FEW) now has seven candidates for its 2009 FEW High Octane Award. The award is presented at FEW and given to a person who has had a long-term tremendous effect on the growth of the ethanol industry. 

Here are the nominees:

1. Doug Anderson, Green Energy Group 
2. Kathy Bryan, BBI International 
3. Roger Burken, retired, Cornhusker Energy 
4. William Covey, NobleAmericas Corp 
5. Mike LoCascio, US Water Services 
6. Phil Madson, Katzen International 
7. Patsy Reimche, Ethanol Producers and Consumers 

Cast your vote by May 22, 2009 by sending an email to Sue Conroe at sconroe@bbiinternational.com. Please put High Octane Award Vote in the subject line and in the body of the email include your choice of nominee, your name, company name, company website, phone number. For more information about the High Octane Award visit the FEW website at www.fuelethanolworkshop.com.

Two new families of ethanol production systems, or “mini-refineries” are being offered today from Allard Research and Development LLC, a company specializing in small to medium sized ethanol systems.  These systems are available in either a fully automated (EFS) or manual process technology (MES) and are designed for use in business, municipalities, agriculture, and commercial markets. 

In a company statement, Adam Allard, President of Allard Research and Development said, “Today’s product launch gives our customers a wide range of Ethanol Fuel Systems that will meet their varying output capacity demands. Our forte is the ability to turn ideas into workable products, not only in a short period of time, but cost effectively. With this new line, our customers can make their business ideas become reality.”

The automated Ethanol Fuel Systems are computer touch screen-controlled and feature a UNIX-based operating system on the primary automation computer. The Manual Ethanol Systems  utilize the same components, including the touch screen-controls, but without full automation.

The EFS and MES machines are offered in 100, 200, 500, and 1000 product models representing output gallons per day capacities. If you are looking for more ethanol output per day, the machines with larger output capacities can be custom engineered and manufactured.

Minnesota state fleet vehicles are using more E85 than ever, according to a new quarterly report from the Minnesota SmartFleet Committee, a group tasked with helping to reduce the state’s use of petroleum fuels in favor of cleaner-burning fuels such as E85 and biodiesel.

In the first quarter of 2009, more than 12 percent of the total fuel used by the state’s light-duty vehicles was E85, an 85 percent ethanol, 15 percent gasoline blend. The 150,000 gallons of E85 consumed during the three months represents a 37 percent increase over the same period last year, fleet officials said.

The report comes on the heels of Minnesota’s move to a five percent biodiesel blend (B5) at all diesel retail outlets statewide. That move was widely hailed by environmentalists, farm organizations, the Minnesota Trucking Association, and the American Lung Association in Minnesota.

“It is very gratifying to see real progress in the state’s ongoing efforts to reduce the use of petroleum fuels and to opt for a clean air choice like E85 whenever possible,” said Kelly Marczak, director of the Clean Air Choice program for the American Lung Association in Minnesota. “We estimate that the E85 used to fuel the state’s 2,500 flexible fuel vehicles prevented nearly 600 tons of lifecycle greenhouse gases and other emissions from entering the air. With more than 2,500 flexible fuel vehicles currently in the state fleet, the opportunity to reduce air pollution and greenhouse emissions is significant.”

Minnesota has over 360 E85 outlets, more than any other state. A complete list of the retailers and more information on the American Lung Association in Minnesota Clean Air Choice program can be found at www.CleanAirChoice.org.

Members of the U.S. House of Representatives and U.S. Senate Renewable Energy & Energy Efficiency Caucuses will join forces tomorrow with the Sustainable Energy Coalition to host the 12th annual Congressional Renewable Energy & Energy Efficiency EXPO + Forum in Washington D.C.

This year’s EXPO will bring together more than fifty businesses, sustainable energy industry trade associations, government agencies, and energy policy research organizations to showcase the status and near-term potential of the cross-section of renewable energy (biofuels/biomass, geothermal, solar, water, wind) and energy efficiency technologies (see examples below).

Members of the U.S. Congress will offer welcoming remarks in the morning while afternoon speakers will discuss the role sustainable energy technologies can play in meeting America’s energy needs.

As Congress, the Administration, the business community, environmental advocates, and American voters search for options to address ways to stimulate the economy, “green jobs,” higher energy costs, increased reliance on energy imports, and the potential threat posed by rising levels of greenhouse gas emissions, the EXPO will help address the role that sustainable energy technologies might play.

This will include not only the technical aspects of renewable energy and energy-efficient technologies but also related issues such as economics, jobs potential, environmental benefits, current and near-term market potential, model programs in the public and private sectors, and institutional, financial and legal barriers.

The Sustainable Energy Coalition brings together more than 60 national and state-level business, environmental, consumer, and energy policy organizations.

When people are discussing energy, how many conversations revolve around physics and its role in developing better renewable energy? I’d venture a guess and say for most people, the answer is never. Until now. This week I read, “Everyone’s Guide to Atoms, Einstein and the Universe” by Robert Piccioni. Had I had Piccioni for my Physics 101 class, I would have had a much better grade.  

Although I enjoyed the entire book, I’m going to focus on two chapters, “Energy, Mass and E=mc²”and “Smart Energy”. Einstein brought to the world its understanding of mass and energy and demonstrated that the two are united and that mass can be converted to different forms of energy. But what exactly is energy? “…energy is the currency of existence….Energy cannot be created nor destroyed; it can only be converted from one form to another.”

The definition above is very apropos considering we are entering into a new energy economy that will have its own currency (hopefully one that is less expensive than our fossil fuel based energy currency we now have).  But what is the best way to convert mass to energy?

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Earlier this year, I told you how Encore Energy was targeting troubled biodiesel plants… ones producing below their capacity… for acquisition (see my post from March 16, 2009). This company press release says that Encore is now making that happen in five biofuels facilities with its new business development partner, Hardin Fuels:

Four production facilities are located in Mississippi with one facility located in Texas.

In anticipation of explosive demand, the Company continues targeting distressed biodiesel asset purchases and bio-fuel production and distribution agreements.

We’ll need to keep an eye on this to see if this is a trend that takes out the small operators that help keep the biodiesel industry diverse… or if its a way to keep the overall green industry in the black.

A green fuel that also gives you the intoxicating aroma of bacon as you drive? It’s as if half of Homer Simpson’s brain had been implanted into Al Gore! A small, startup company in Manitowoc, Wisconsin has opened its first biodiesel station with the feedstock being the pork fat left over from making pre-cooked bacon.

This story from the Manitowoc Herald Times Reporter says husband and wife Dan and Tracy Kaderabek have opened their Bio-Blend Fuels filling station in the city on the western shore of Lake Michigan:

“The pork gets run through microwaves to make precooked bacon, the grease falls off and that’s what we use,” Dan said. “Americans’ bad eating habits ensure our supply.”

The Kaderabeks’ blend of 20 percent biodiesel-80 percent regular diesel sold for $2.17 Monday while “B99″ (almost all fuel from the pig fat) was $1.99.

There are ideas to one day change to algae as a feedstock.

While this is certainly no where close to some of the big operations… or even some of the medium-sized operations… it’s nice to see a couple of regular Joes (or in this case, a couple of regular Kaderbeks) making it with their own version of a green vision. And as a plus, it involves BACON! Brings a tear to my eye just thinking about it (or is that drool from my mouth?).

An on-line petition drive sponsored by the American Coalition for Ethanol (ACE) has gathered more than 5,000 signatures in the past month from people in all 50 states who are in favor of the government increasing the amount of ethanol allowed per gallon of gasoline to 15 percent.

“People want more ethanol, and the number of names signed to this petition in just a month’s time demonstrates widespread grassroots support for ethanol,” said Brian Jennings, Executive Vice President of ACE. “It’s significant that the people who have signed the E15 petition come from all 50 states, because this shows that ethanol is not just a Midwestern issue. People all across the country recognize that big oil’s monopoly at the pump must be broken and that more ethanol represents meaningful consumer choice.”

The online petition can still be signed through May 21, which is the end of the EPA public comment period. The petition and all of the names, listed by state, can be viewed and signed at www.ethanol.org/petition.