Domestic Fuel

Minnesota has upped its biodiesel requirement today from 2 percent to 5 percent, making the state the first in the nation to move to that high of blend of the green fuel.

The state is being recognized by the National Biodiesel Board for its efforts to keep valuable jobs in the U.S., decrease dependence on foreign oil and lessen environmental impacts:

“Increasing biodiesel in our diesel fuel allows us to take advantage of a renewable fuel made in Minnesota, which in addition to being environmentally responsible also adds to our state’s bottom line,” said Ed Hegland, a Minnesota soybean farmer and Chairman of the National Biodiesel Board. “I’m proud to live in a state that is leading energy innovations and taking part in valuable solutions like biodiesel.”

“This standard empowers the citizens of the state to support Minnesota’s economy and use less foreign oil,” said Joe Jobe, National Biodiesel Board CEO.

The NBB says the Minnesota was able to overcome some early concerns about its B2 requirement by making sure there was proper quality control.

Last winter, biodiesel was wrongly accused of causing some buses in Bloomington to not run. The NBB points out that biodiesel can perform well at 20 percent blends, even in the coldest of climates, so the new 5 percent requirement should not be an issue in the chilly Minnesota winters.

Minnesota joins Washington state, Oregon, Pennsylvania, Louisiana, New Mexico and Massachusetts, which have also passed biodiesel requirements.

U.S. Senator John Thune has introduced a bill designed to strengthen the Renewable Fuels Standard and prevent the Environmental Protection Agency from using inaccurate indirect land use models to discredit the positive environmental impacts of ethanol.

“Following California’s recent decision to use flawed models to estimate ethanol’s environmental impact, I am concerned that the EPA could soon apply similar standards that will handicap renewable fuel relative to regular gasoline,” said Thune. “Congress has asked EPA to apply greenhouse gas emission standards that reflect ethanol’s proven environmental benefits. However, with the EPA’s current decision that is pending at the White House, I am concerned that EPA’s action could have a detrimental impact on our renewable fuel industry and efforts to reduce our dependence on foreign oil.”

Thune’s bill directs the EPA to focus on direct lifecycle greenhouse gas emissions, which would level the playing field between ethanol and regular gasoline and bring more regulatory certainty to the ethanol industry. Additionally, the bill would require EPA to publicize the model for measuring lifecycle greenhouse gas emissions before taking any regulatory action. The bill would also allow individual ethanol producers with a unique production method to apply to the EPA for a lower carbon score which would provide an incentive for ethanol companies to develop innovative ways to produce ethanol.

A new campaign funded by the Natural Resources Defense Council (NRDC) has created controversy in the biofuels industry. The campaign was developed, according to a blog post by Nathanael Greene, “to sharpen the distinction between biofuels done right and biofuels done wrong.” The campaign cites that ethanol plants using coal power is “wrong” as well as biofuels that “pillage” natural resources are done “wrong”. How to do them right? Use crops like switchgrass that use less water and fertilizer.

Sean O’Hanlon, the executive director of the American Biofuels Council (ABC), responded to the campaign by noting that NRDC made an error in that they just made themselves feedstock specific.

However, in an article published by OPIS, Greene clarified the intention of the campaign. “Congress and the country are working now to create a clean energy future and grow green jobs. If biofuels are going to be part of that future, we need to get them right. All biofuels — first generation, advanced, cellulosic, algae, you name it — they all need to be done right and measured against strict performance standards.”

“Today, environmental groups are the ones who are dictating what fuels, methodology and technology the biofuels industry should be developing.” said O’Hanlon. “What the biofuels industry should have been doing from day one is producing its fuel using wind, solar, hydo-electric, and geothermal power.”

O’Hanlon concluded by saying, “In order to produce biofuels sustainably, there are additional issues we are going to face including water use. The industry needs to start preparing for this now.” There are many experts who would agree that water use is going to come under fire in the next few months. Let’s hope the industry gets out ahead of the issue and doesn’t face another crisis similar to food versus fuel.

I went back in time this week (if you can call five years ago back in time) and read Richard Heinberg’s, “The Party’s Over“.  I was curious to see how the thinking about our addiction to fossil fuels and the need to adopt renewable energy has changed. Well, it really hasn’t.

Like many other authors who wrote books about oil during this time frame, Heinberg talked a lot about America’s (and the world’s) love affair with oil and discussed, at length, when America and the world would succumb to peak oil. Since most people have come to terms with the theory that we’ve already seen peak oil, most authors don’t focus on this issue any longer. From there he focused on the current and future technologies of renewable energy sources.

It’s interesting to note that Heinberg is a follower of population reduction, a concept that is mentioned in several occasions in the book I reviewed last week, “Green Hell”. Heinberg argues that the ideal population level is around two billion people. This would be a reduction of nearly four billion people. Based on the fact that the world has limited resources (he disagrees with the fact that we can keep saving ourselves with technology) he lists five things our leaders should logically and morally be compelled to do.

1. Adopt the ethic of sustainability in all aspects of thinking.
2. Institute systematic efforts to improve efficiency in the use of efforts.
3. Encourage the rapid development and deployment of all varieties of renewable energy.
4. Systematically discourage (through taxes) the consumption of nonrenewable resources.
5. Find humane ways to encourage a reduction in human fertility in all countries, so as to reduce the population over time.
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In a time when many plants are shutting down, a new ethanol plant near New Hampton, Iowa has started production.

The Homeland Energy Solutions will produce 100 million gallons of ethanol annually, according to the Iowa Renewable Fuels Association (IRFA), which congratulated the company for its accomplisment this week.

“It’s been a difficult time for the ethanol industry, but Homeland Energy Solutions is proof that we are working through it and finding ways to succeed,” said IRFA Executive Director Monte Shaw. “This locally-owned ethanol refinery will buy Iowa corn and provide good paying jobs in rural Iowa. Homeland Energy Solutions is a welcome addition to Iowa’s growing industry.”

Homeland Energy Solutions Board Chair Steve Eastman said they are excited to start production. “And we are grateful that we missed the commodity boom and bust of 2008 that whiplashed so much of the ethanol industry,” said Eastman. “While margins remain tight, we feel well positioned going forward.”

Fagen, Inc., the Granite Falls, Minnesota design-build contractor, oversaw the construction and incorporated a process design provided by ICM, Inc. of Colwich, Kansas.

The American Coalition for Ethanol (ACE) has launched a petition drive calling on EPA to allow blends of up to 15 percent ethanol in regular gasoline.

According to ACE organizers, the on-line petition has gathered over 4500 signatures from nearly every state. “ACE wants to gather as many signatures as possible to demonstrate to Congress, the White House, EPA, and the media that Americans want more ethanol,” they said.

The petition states:

I believe we should be allowed to choose more clean, American-made renewable fuel for our cars. The federal government arbitrarily limits the use of ethanol in a gallon of gasoline to just 10 percent, a regulation that is standing in the way of new green jobs, jeopardizing progress toward advanced biofuels, and putting energy security at risk. The U.S. Environmental Protection Agency is currently considering whether to allow the use of up to 15 percent ethanol, which would enable consumers to choose between fuels that contain no ethanol and any blend up to 15%.

Sign the petition on-line here.