Domestic Fuel

A report on food prices and the role biofuels have played (and have not played) in the spike of those prices has been recognized for a very prestigious award.

The Farm Foundation report entitled “What’s Driving Food Prices?” released last year has won the 2009 Quality of Communication Award presented by the Agricultural and Applied Economics Association (AAEA) for the report’s objective, comprehensive look at how last year’s spike in oil prices was largely responsible for the spike in food prices, while increased ethanol demand played a smaller role (although it got more of the blame):

The report was written by Wallace Tyner, Philip Abbott and Chris Hurt, all agricultural economists at Purdue University. They identified three main drivers of food prices–depreciation of the U.S. dollar, changes in production and consumption, and growth in biofuels production. When it was released in July 2008, the report received wide distribution both nationally and internationally through the Farm Foundation Forum at which it was released, subsequent press coverage, and a webinar.

Within six months, food supplies had stabilized and economic conditions had changed dramatically. In light of these changes, Farm Foundation asked the three authors to update the report. Released in March 2009, the updated report showed that the three primary drivers of food prices remained unchanged, despite the significant reversal of conditions.

Three other Farm Foundation projects were also recognized by the AAEA Awards Committee. The Quality of Research Discovery Award went to Alan L. Olmstead of the University of California, Davis, and Paul W. Rhode, of the University of Arizona, for their book, Creating Abundance: Biological Innovation and American Agricultural Development; the Outstanding Article Award for AAEA’s Choices magazine went to Bruce A. McCarl of Texas A&M University and Steve K. Rose of the U.S. Environmental Protection Agency for the article, “Greenhouse Gas Emissions, Stabilization and the Inevitability of Adaption: Challenges for U.S. Agriculture;” and three students were honored in the AAEA Graduate Student Extension Competition. First place went to Anna Flaig of Purdue University; second to Sonja Peraski of Michigan State University; and third to Daniel Sanders of Ohio State University. Farm Foundation funds the awards for this competition.

The Institute for Agriculture and Trade Policy (IATP) recently published a report that called for the ethanol industry to stop using antibiotics in the production process. Many believe that this report is just one of many initiatives the IATP has to fight the modernization of the agriculture and livestock industry and that they are attempting to manufacture controversy.

Antibiotics are widely used in production of biofuels as a critical tool for infection management. Through the use of small amounts of antibiotics such as Phibro’s Lactrol antimicrobial, the U.S. biofuels industry eliminates the need to plant an additional 3.2 million acres of corn to produce 500 million bushels of corn.

Just last week, Phibro Animal Health Corporation (Phibro) released a study from its Ethanol Performance Group showing that the use of antibiotics is safe.

According to Phibro, IATP’s position, that use of antibiotics in the production process results in residues in distillers’ dried grains (DDG) in turn putting human health at risk is a stunningly broad conclusion not based upon fact or science. The IATP’s broad policy statement fails to mention:

• •    The proper use of antibiotics is a safe practice in both renewable fuels and in animal husbandry that preserves our precious agricultural resources such as land and water.

• •    Since its introduction in 1993, Lactrol® has remained a safe product for use in renewable fuels production and distillers’ grain production. It has been sold under an FDA letter of no objection in addition to the regulatory discretion of the FDA’s Center for Veterinary Medicine (CVM).

• •    In the past 3 months Lactrol® alone has been sold to far greater than 55% of the current operating plants. The IATP falsely asserts that 45% of current producers are able to operate without antibiotics.

This is just one negative issue among many that are splashed across the papers on a daily basis. However, biofuels are the only viable solution we have today to offset foreign oil imports. Click here to read the full statement from Phibro.

The first E85 station in Coolidge, Arizona is opening tomorrow, July 31. The grand opening celebration will be held from 10 a.m. to 2 p.m. at the station location at 295 S. Arizona Blvd. in Coolidge. The celebration will include a ribbon-cutting and comments from city officials.

The station, opened in conjunction with Coolidge Chevron (Discovery Fuels), Pinal Energy and the Tucson Regional Clean Cities Coalition as well as the Renewable Fuels Association, will celebrate the opening by offering E85 at a discounted 85 cents per gallon for 85 minutes (from 10:30 a.m. to 11:55 a.m.). Customers will also be able to purchase pizza and soda for 85 cents during the same time period.

Robert White, Director of Market Development for RFA, said, “This is an exciting day for the consumers of Pinal County. Consumers now have a choice to use an American fuel that was made just down the road at Pinal Energy.”

“Bringing a clean fuel alternative like E85 to the Pinal County consumer, being a good community partner and being a part of building a better tomorrow was important to Coolidge Chevron,” said Mike Mennenga, owner of the Coolidge Chevron. “The timing makes sense given current gasoline prices and the renewed focus on preserving our environment.”

To learn more about ethanol and to find E85 stations near you, visit RFA’s new consumer website, Choose Ethanol. And if if you haven’t already, don’t forget to send in your summer vacation photo for a chance to win free fuel.

Green Plains Renewable Energy announced today that their recently acquired ethanol plant located in Central City, Neb. is back in production. This 100 million gallon per year (mpy) biorefinery has been idle since November 2008. Green Plains said they made necessary repairs and capital improvements to the plant.

This plant was purchased from AgStar Financial Services back in May. AgStar became the default owners of the plant, along with one in Ord, Neb. when VeraSun Energy filed for bankruptcy. Earlier this month, Green Plains also announced that the plant in Ord also commenced operations – just 8 days after the purchase became official.

“The startup of the Ord plant within eight days of completing the purchase is a testament to our operational experience and our considerable understanding of the plant technology,” said Todd Becker, Green Plains’ President and Chief Executive Officer. “The Ord plant has been idle since November 2008, but based on our expertise, we developed and executed a comprehensive plan that allowed us to quickly achieve this milestone. We are glad to bring this plant back online producing ethanol.”

Green Plains, based in Omaha, Neb., is North America’s fourth largest ethanol producer with a combined operating capacity of 480 mgy.

According to the Clean Fuels Foundation, a national consumer awareness campaign aimed at owners of flexible fuel vehicles (FFVs) was officially launched at the Farm-to-Fuel Summit. The project is a cooperative effort between key Florida state government interests, gasoline/E85 distributors, ethanol companies, and several nonprofit environmental and energy advocacy groups.

The Florida Farm-to-Fuel Summit provided the forum for Charles Bronson, Florida Commissioner of Agriculture and Consumer Services, to announce that the state would be taking a proactive role aimed at increasing the use of higher blends of renewable biofuels, like ethanol, in flexible fuel vehicles (FFVs). “Our state has developed a comprehensive strategy to become more energy independent with clean, sustainable, and affordable fuel sources,” said Governor Crist. “Today’s announcement is one more step that our state can take in the effort to become better stewards of our natural resources.”

“The FFV Awareness driver education project is designed to locate and encourage drivers of FFVs to try higher blends of ethanol when they are available. This will help Florida meet its goals of reducing the cost of and reliance on imported oil, improving air quality, and creating economic development opportunities – all while reducing greenhouse gases. This is a Win-Win-Win for Florida drivers, the state government, and the nation,” said Douglas A. Durante, Director of the Clean Fuels Foundation.

There are currently thirty E85 stations in the state, with a majority of them located in the South Florida market.

The Clean Fuels Foundation and the FlexFuel Vehicle Club of America are the project organizers in cooperation with the Florida Department of Agriculture and Consumer Services. The lead sponsor for the pilot project is the Renewable Fuels Association. Other project supporters include General Motors, Verenium, Protec Fuel Management, Urbieta Oil, Florida Biofuels Association, and the USDA Office of Energy Policy and New Uses.

The State of Massachusetts has handed out $2.2 million to fund nine new wind energy projects.

This press release from the state’s Executive Office of Energy and Environmental Affairs says the agency’s secretary, Ian Bowles, made the announcement of the grants awarded by the Massachusetts Renewable Energy Trust through the new Commonwealth Wind Community-Scale Wind initiative:

“Wind energy is a core component of Governor Patrick’s plan for the Commonwealth’s clean energy future,” said Secretary Bowles. “These nine grants will help get more wind turbines installed and help more community institutions reduce their use of fossil fuels.”

Awards for the six feasibility studies go to Allen Farm, Martha’s Vineyard; Cape Cod Academy, Osterville; Centerville-Osterville-Marston Mills Fire District; Colony Place, Plymouth; Falmouth Academy, Falmouth; and Up-Island Regional School District, Chilmark, Aquinnah, and West Tisbury.

You can read more about each project here.

National carrier J.B. Hunt has committed to burning algae biodiesel in its semi-trucks.

This post on the FleetOwner blog says that after successfully testing 20 and 50 percent blends of SunEco Energy’s biodiesel, made from algae oil, J.B. Hunt found it reduced emissions by more than 80 percent without any loss of power:

“Producing renewable fuel supplies from algae grown in American ponds is an intriguing new option,” noted Gary Whicker, senior vice president of engineering for J.B. Hunt, in a press statement. “Our initial experience with their algae-based biodiesel is promising, and we are excited about the opportunity to work … towards a lower cost, less carbon intensive, and more secure energy supply for our business.”

I’ve talked about the potential for algae as a vehicle fuel stock in this space before – just last year in fact – but I didn’t think we’d be seeing it put through its paces in trucking this soon. And frankly, I shouldn’t be surprised that J.B. Hunt of all carriers is forging ahead with a plan to use algae-based biodiesel in its trucks, for this is a carrier long known for doing things differently – a hallmark of its late founder, Johnnie Bryan Hunt.

While the post does point out that algae biodiesel is still some time from commercial viability, the fact that a billion dollar carrier like J.B. Hunt is taking on a project like this shows that someone sure thinks that profitability running algae biodiesel can’t be that far away.

The city of Denver is coverting more than 100 trucks and snow plows to run on clean-burning biodiesel.

The Denver Business Journal says the city is getting $700,000 in federal stimulus bucks to retrofit the equipment:

Denver announced Thursday that it had received the “Clean Diesel Conversion” grant from the U.S. Environmental Protection Agency. The money will be spent on:

“Biodiesel is cleaner than diesel and is a domestically produced energy source,” said Sabrina Williams, environmental analyst and grant project manager with Denver’s Department of Environmental Health, in the announcement. “We’ve been using biodiesel in the city’s fleet since 2004. This grant money will be used to offset the cost of purchasing the environmentally-friendly fuel.”

The conversion includes putting pollution-control devices on the trucks and snow plows and various idle-reduction technologies to help cut down on emissions.

More good news for ethanol. U.S. Energy Secretary Steven Chu has announced up to $30 billion in new load guarantees funded in part, through the American Recovery and Reinvestment Act and in part through 2009 appropriations. Once again, next generation biofuels projects get an additional boost as the lending authority includes up to $500 million in subsidy costs to support loans for these groups. These dollars are coming specifically from the Recovery Act.

Just last week, the DOE announced $85 million for Algal and Advanced Biofuels, the funding also coming from the Recovery Act.

As reported first by Biofuels Digest, the solicitation is the seventh rounds of solicitations by the Department’s Loan Guarantee Program, which encourages the commercial use of new or improved energy technologies to help foster clean energy projects. Applications will be accepted over the next 45 days.

If it is at all possible to speed up the federal government, the DOE has said that is has created a streamlined process to accelerate the loans. In addition, they are absorbing up to $3 billion in loan guarantee administration costs that were originally charged back to former loan recipients. The DOE will announce more details regarding the load guarantee solicitations funded by the Recovery Act soon.

The joint cellulosic ethanol venture between BP and Verenium Corporation now has a name – Vercipia.

The two companies announced that their 50-50 joint venture company will operate under the name Vercipia Biofuels, and corporate headquarters will be in Florida.

Vercipia continues to focus on the development of one of the nation‟s first commercial-scale cellulosic ethanol facilities, located in Highlands County, Florida. The company is also developing a second commercial-scale cellulosic ethanol site in the Gulf Coast region.

Since announcing the formation of the joint venture company in February, Vercipia has applied for and been selected to move forward with due diligence on a Department of Energy (DOE) Loan Guarantee for the Highlands project, which is now underway. In addition, the team has continued to advance development activity in Florida and on a second site in the Gulf Coast region.

A new report shows some pretty strong growth in the biofuels market in the next decade, especially in the biodiesel sector.

This article from Biodiesel Magazine says Boulder, Colorado-based Pike Research sees the biofuels market tripling by the year 2020, growing from $76 billion to $240 billion:

“The study started out as an assessment of technologies in the biofuels industries, but then it grew into a more of a market analysis,” said Robert McDonald, author of the report.

Recycled greases, however, do not have the same potential that algae or jatropha holds for the biodiesel industry over the long term, the Pike Report said. “They’re planting a lot of jatropha right now, but it will take four to five years to mature, so we’re looking at 2013-2014 before it starts to make an impact,” McDonald said.

The article goes on to says that while algae-based biodiesel is still about five years away from being commercially viable, the number of breakthroughs and the amount of investment in the pond scum energy will make it a matter of “when” and not just “if.”

A Colorado biodiesel company has nearly doubled California’s total output of the green fuel.

Denver-based Crimson Renewable Energy has completed a 30-million-gallon-a-year biodiesel and glycerin plant near Bakersfield, California, the largest biodiesel facility in the state. Previously, California had only 34 million gallons a year of biodiesel production:

Crimson’s new Bakersfield production facility can utilize a wide variety of feed stocks such as waste inedible animal fats, used cooking oil, and virgin vegetable oils to produce low carbon and ultra-low carbon fuels to meet California’s new Low Carbon Fuel Standard requirements for fuels with reduced carbon / GHG emissions. Using lifecycle carbon / GHG emissions calculations released by the California Air Resources Board, biodiesel produced at the Crimson Bakersfield facility can reduce carbon /GHG emissions by to 337,000 metric tons per year. The facility also includes the capacity to process up to 50 million pounds per year of crude glycerin, to produce high-quality, refined glycerin, which is an important ingredient in a variety of industrial, personal care, pharmaceutical and food applications.

Crimson officials say they have taken a sustainable approach to their biodiesel plants. This plant near Bakersfield will serve California’s Central Valley, Central Coast and Los Angeles Basin areas.

A solar panel company will be mounting 200,000 smart solar photovoltaic panels on the poles of a New Jersey utility, making it the largest pole-attached solar installation in the world.

This press release from Petra Solar, Inc., says the project to mount the systems on New Jersey’s PSE&G utility poles and street light poles will create 100 green jobs in installation, research and development, operations and manufacturing:

In a contract of about $200 million with PSE&G, Petra Solar will make units for 200,000 poles in New Jersey’s six largest cities and 300 rural and suburban communities in PSE&G’s service territory. Over the 3½ year life of the contract, Petra will add the green jobs to its employee base of 40-plus employees, most of whom work in the company’s South Plainfield headquarters and manufacturing facility.

“Our SunWave™ pole-mounted, grid-connected PV generation system delivers true technological innovation,” Kuran said. “Our product will enable PSE&G to enhance the reliability of its delivery of electricity to customers. ”

Petra’s SunWave system uses a combination of highly distributed, grid connected photovoltaic generation and smart grid communications capabilities, while providing enhancement of electric distribution grid reliability through a host of functions such as voltage support.

Earlier today, Matt Horton, CEO of California based Propel Fuels was featured on CNBC’s “The Tech Effect”.  The title of the piece: Going Green One Tank at a Time. The premise is how air quality officials in Sacramento, California are spending millions so owners of flex fuel vehicles can find gas stations offering environmentally friendlier fuels. Horton noted that ‘today’ they sell E85 and biodiesel and ‘tomorrow’ they’ll also sell hydrogen.

Ethanol enthusiast and Propel Fuels customer Paul Wikoff was interviewed. He noted that not only does he use ethanol for its environmental benefits and because it costs less, but because it helps America get one step closer to energy independence.

The 5th annual AltWheels Fleet Day will be held Monday, October 5, 2009 at Staples World Headquarters in Framingham, MA.

This is a don’t miss event for individuals wanting to understand the latest in alternative transportation technologies, costs, best practices, funding, and fuel options. This is the largest alternative transportation event of its kind in New England.

The day will consist of more than 30 leading experts, interactive workshops, more than 40 alternative vehicles of all sizes and types, half of which are available for ride and drives, as well as exhibits covering hybrids, electric vehicles, alternative fuel vehicles, CNG vehicles, hydrogen/fuel cell, and more efficient vehicle technologies. Fleet managers will speak on how they have switched their fleets to alternatives and about the real dollar savings and the learning process involved with this transition. A special panel this year will focus on the stimulus spending and new sources of funding for fleet and vehicle conversions. One can explore ways to reduce fuel costs while getting ahead of the next generation of regulations. This event is designed for corporate fleet managers, small business executives who want to understand vehicle options, municipal fleet and facilities managers, government officials, and interested individuals.

Visit the website at www.altwheels.org for more information and to pre-register.