Domestic Fuel

A two-year safety alliance has been formed with the Iowa Occupational Safety and Health Administration (Iowa OSHA) and the Iowa Renewable Fuels Association (IRFA). According to the IRFA, the alliance sets in place regular meetings between Iowa OSHA and IRFA’s Environmental, Health and Safety Coalition. The focus is to explore best management practices and improve the recognition and control of workplace hazards.

“The new safety alliance between IRFA and Iowa OSHA sets up an important mechanism to share cutting edge safety information – both between the organizations, but also between individual biorefineries,” stated IRFA Executive Director Monte Shaw. “The biofuels industry is very proud of its safety record, but we know there is room for improvement. This alliance is open to every Iowa biodiesel and ethanol facility that agrees with our motto: safety isn’t ‘proprietary.’ Through this venue, competitors in the marketplace come together to share new ideas and lessons learned with the goal of helping every biorefinery in Iowa be as safe as possible.”

“Iowa OSHA congratulates the Iowa Renewable Fuels Association for stepping forward and giving leadership to employee safety in the Iowa biofuels industry,” said David Neil, Iowa’s Labor Commissioner. “The industry has had a good record in employee safety but there is always room for improvement and we are proud to be a part of the ongoing effort by companies involved to improve and maintain safe working conditions for all involved. One accident is too many and therefore continued vigilance in this area is in the best interest of all.”

Iowa is the leader in renewable fuels production. Iowa has 40 ethanol refineries capable of producing nearly 3.3 billion gallons annually. In addition, Iowa has 15 biodiesel refineries with the capacity to produce over 322 million gallons annually.

You don’t expect Duke and the University of North Carolina to be together on too many things, especially when it comes to items on the basketball court. But in this case, it’s Duke Energy teaming up with the Tarheels on a wind energy project.

The Triangle Business Journal reports that the two are partnering to put up three wind turbines in Pamlico Sound that could become the first turbines placed in water in the country:

The project follows a nine-month UNC study completed in June for the general assembly that concluded the state has the potential to develop utility-scale wind energy production.

“This project is a great example of how university research can expand our understanding of an issue – in this case, wind energy,” UNC Chancellor Holden Thorp said in a prepared statement. “Then an industry partner like Duke Energy can use that research to do what they do best and develop this on a larger scale.”

The project would join Duke’s 634 megawatts of land-based wind power it currently has in Pennsylvania, Texas and Wyoming and another 99 megawatts under construction and an additional 251 megawatts of wind projects that should start producing power next year.

U.S. Air Force and Navy pilots could soon be flying on renewable fuels, specifically, biodiesel made from camelina and algae.

Aviation Week reports that the Air Force is working on certification for its planes to use synthetic Fisher-Tropsch (F-T) fuel by 2011 and also is launching a similar certification for hydrotreated renewable jet (HRJ) biofuels:

“We have a certification schedule for a 50:50 blend of HRJ [and conventional petroleum-based JP-8],” says Bill Harrison, deputy director of the Air Force’s new Energy Office. “We’ve learned a lot through the F-T effort and are hoping for a rather rapid and smooth certification.”

Sustainable Oils, Solazyme and Honeywell company UOP will supply 400,000 gallons of fuel to the Air Force and 190,000 to the Navy. Sustainable Oils will use camelina as the feedstock, Solazyme will use algae and UOP will use animal fat, or tallow, supplied by food producer Cargill. All three will use UOP’s processing technology.

The military is working on guidance for what the best feedstock for biofuels should be and is leaning toward cellulosic feedstocks for the long term.

The ag policy think tank known as Farm Foundation has announced the winners of its competition to look for long-term solutions to the major questions of how to provide food, feed, fiber and fuel to a growing world, and biofuels are the subjects of at least two of the winners.

Last December, Farm Foundation announced its 30-Year Challenge report that identifies six major areas of challenges agriculture will face as it works to provide food, feed, fiber and fuel to a growing world. The six areas are: global financial markets and recession; global food security; global energy security; climate change; competition for natural resources; and global economic development. This past spring, Farm Foundation announced a competition for essays to come up with some solutions for those challenges (see my post from April 30, 2009). Two different sets of researchers, Chad Hellwinckel and Daniel De La Torre Ugarte, both of the University of Tennessee, and Loni Kemp of Kemp Consulting, were named winners.

The entry from Hellwinckel and De La Torre Ugarte focused on the role of biofuels in agriculture policy:

Viewing agriculture simply as a potential source for meeting the greater economy’s fuel demand will not guarantee the necessary transition, and could even exacerbate soil destruction, increase agriculture’s input consumption and lead to food shortages. If appropriate, biofuels could be a vital part of long-term agricultural policy, but agriculture should not simply become a part of energy policy.

Biofuels demand could be a catalyst creating the right conditions for a transition to a truly regenerative agriculture, particularly if that demand moderately increases all commodity net returns. If crafted within a larger agricultural policy matrix, biofuels policy can be part of the solution.

Kemp’s entry looked at overhauling the current biofuels tax credit system:

What is missing from current tax policy is a requirement for actual performance in delivering expected environment and climate benefits. To remedy this, the mix of existing federal biofuel tax credits—including the ethanol blender’s tax credit—must be reformed into a unified performance-based tax credit. The actual level of payment per gallon would vary, according to the sustainability performance of the biorefinery.

Read the rest of this post…

According to a press release by Propel Fuels, the group who is a leading retailer of environmentally-friendly, alternative fuels, has partnered with the Sacramento Regional Conservation Corps (SRCC) to provide life and jobs skills training for at-risk young men and women at Propel’s retail fueling locations. Involvement in the program provides SRCC corpsmembers training in critical skills such as job responsibility, timeliness and teamwork, while exposing them to the promising industry of renewable energy.

“Our partnership with SRCC allows us to not only help young people develop important skills that will assist them the rest of their lives, but creates a skilled workforce for the growing renewable fuels industry.” said Rob Elam, Propel’s President and Co-Founder. “We look forward to expanding this important program on a larger scale as our network of alternative fueling stations grows.”

SRCC provides an alternative to youth unemployment, incarceration and substance abuse through conservation work, education and community service. The Corps experience leads to successful post program employment, and has been found to reduce arrest rates by one third.

“The opportunities that Propel has provided for the young people in our program are invaluable and offer them a positive environment in which they can channel their energy,” said Andi Liebenbaum, Deputy Director of the Sacramento Regional Conservation Corps. “The exposure our corpsmembers are receiving to the renewable fuels industry can only help them in a future job market.”

Through its Sacramento area Clean Fuel Points, Propel has brought immediate and convenient access to E85 and biodiesel to the tens of thousands of Flex Fuel and diesel vehicles in California. The company currently operates a network of five stations in Sacramento, Rocklin, Citrus Heights and Elk Grove and aims to deploy hundreds of stations across the state over the next five years. Propel ensures its fuels are sourced from sustainable, U.S.-based feedstocks that protect our environment and reduce dependence on foreign oil.

USDA’s Agricultural Research Service is studying the use of plant residues for biofuels.

At the University of Minnesota-Morris Biomass Gasification Facility, for example, gasification researcher Jim Barbour and ARS soil scientist Jane Johnson (pictured) are evaluating potential biomass feedstocks, including pressed corn stover.

The Agricultural Research Service has scientists in 18 states involved in the Renewable Energy Assessment Project (REAP) which is trying to determine the balance between how much crop residue can be used to produce ethanol and other biofuels and how much should be left on the ground to protect soil from erosion, maintain soil organisms, and store carbon in the soil.

Because corn is currently the most widely used biofuel crop, the REAP team is especially interested in determining where, when, and how much corn stover can be harvested without harming soil productivity. The work involves not only looking at how much plant residue is needed to maintain soil carbon than to control soil erosion, but also using perennial groundcover roots and shoots as alternative sources of organic material to offset the carbon lost when stover is removed.

Read more about the project here.

Rep. Stephanie Herseth Sandlin (D-SD) hosted U.S. Secretary of Agriculture Tom Vilsack Monday for a Rural Issues Forum in Bath, South Dakota which was attended by an estimated 300 people who were able to ask questions about issues impacting the rural economy.

South Dakota’s contribution to biofuels production was discussed during the forum. Rep. Herseth Sandlin joined 28 members of Congress in sending a letter to the Environmental Protection Agency (EPA) requesting approval for allowing gasoline blends to contain up to 15 percent ethanol. A final rule is expected from the EPA by December 1 and Vilsack said he expects the agency to meet that deadline.

Rep. Herseth Sandlin also brought up her concerns with the EPA’s proposed rule for the implementation of the Renewable Fuels Standard (RFS) included in the Energy Bill passed in late 2007 and the proposed rule including indirect land use changes impacting lifecycle greenhouse gas emissions associated with biofuels production.

“Ultimately, if the EPA can’t get it right, I support requiring EPA to make the comparison of emissions from biofuels and gasoline the central issue, rather than the questionable science of indirect land use that would be devastating to the renewable fuels industry and our country’s energy independence,” Rep. Herseth Sandlin. “It’s vitally important for economic development in South Dakota and for our nation’s energy independent future that the EPA correctly implement the RFS – and bases its rule on fact, not fiction.”

The next time you work for a company that goes bankrupt, consider pitching them this idea to generate income: an Eco-Pod. The Eco-Pod, designed by Howeler + Yoon Architecture and Squared Design Lab, is a cutting edge way to grow algae to be used to create fuel. The firm designed the concept as a way to help stimulate the economy and ecology of downtown Boston after famed clothing store Filene’s basement went bankrupt before completing the building of its newest location.

Eco-Pod is a temporary vertical algae bio-reactor and new public Commons, built with custom prefabricated modules. According to an article published in Design Magazine, the pods will serve as bio-fuel sources as well as micro-incubators for flexible research and development programs.

In a ‘pod’ robotic arms continually re-arrange the pods, which are powered by the micro-algae that is being produced, to ensure that the growing conditions for the each pod are always optimized.

Many experts believe that algae has the most promise as a way to produce a significant amount of biodiesel or green gas. Some of its advantages include the ability to grow in vertical structures or non arable land, doesn’t need fertilizer and uses little water.

What has been a symbol of failure for some of the American automobile industry could become a shining example of green jobs in the U.S. biodiesel industry.

This story from the Flint (MI) Journal says that idled for 10 years, “Buick City,” the former Flint, Michigan General Motors plant that once cranked out cars, could soon become a hub for soybean products… including biodiesel:

The plans: shipping soybeans, a plentiful commodity in Michigan, to and from the site and producing biodiesel.

Plus, soybean oil is used to make a make renewable biodiesel fuel to power diesel vehicles.

While the 600 jobs the new venture could produce doesn’t come close to the 20,000 jobs the area used to support in its heyday, it is a start and could give a green future to an area known as a toxic waste dump for the last decade.

The Biotechnology Industry Organization (BIO) is trying to head off any possible efforts to subject biodiesel and ethanol to another set of greenhouse gas emission regulations that would effectively put the green fuels under a double jeopardy situation.

Arguing that biofuels are already regulated under the Renewable Fuels Standard, BIO has sent a letter to Sen. Barbara Boxer (D-Calif.), chair of the Senate Committee on Environment and Public Works, asking that recently drafted cap-and-trade legislation be amended to clearly state that biofuels, including the biofuel component of fuel blends, are not obligated under the emissions cap:

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, stated, “When it comes to climate change legislation, Congress has focused a great deal of attention on stationary emission sources, such as coal-fired power plants. We cannot, however, achieve a low-carbon future without biofuels, because biofuels can play a key role in reducing direct CO2 emissions from the transportation sector. While fossil fuels release carbon that has been stored deep underground for millions of years into the atmosphere, biofuels recycle atmospheric carbon. In some cases, biomass production can sequester more carbon in the soil than is released into the atmosphere through biofuel combustion. Biofuels should therefore not be treated in the same manner as fossil fuels under any climate change cap-and-trade legislation.

BIO goes on to point out that under the RFS, biofuels are already required to achieve substantial lifecycle greenhouse gas improvements compared to petroleum-based fuels.

A new University of Nebraska study finds that higher ethanol blends increase engine efficiency.

The study, which was funded by the Nebraska Corn Board, found that high ethanol blends provide better energy conversion within an engine than other fuels, meaning less energy to travel further. The report says that e85 improved energy conversion by 13, 9 and 14 percent, respectively when compared to e10, for the light, medium and heavy loaded vehicles tested.

Vehicles went through chassis dynamometer testing as part of the study. The dynamometer simulated different road and vehicle operating conditions, allowing researchers to fully measure a number of important data points to measure the performance of different ethanol blends.

The researchers acknowledged that higher ethanol blends like e85 have a lower energy density, or fewer BTUs per gallon, than e10. That often leads to fewer miles per gallon for higher ethanol blends, but that gets partly offset by ethanol’s improved efficiency.

“Fuel economy is actually a combination of fuel efficiency and fuel price, and on that point, higher ethanol blends may be the better choice,” said Isom, who is with the University of Nebraska’s Industrial Agricultural Products Center. “It just depends on fuel prices at the time. Specific vehicles may test out differently based on engine design and settings, but increased efficiency from ethanol blends make sense, and for the fuel prices we looked at in the study, e85 was the best choice every time.”

Read the entire report on-line here.

Verenium Corporation has announced a proposed public offering of common stock, subject to market and regulatory conditions.

According to the company, the offering is expected to price before 9:30 am EDT on Tuesday, October 6. Lazard Capital Markets LLC is acting as the sole book-running manager for the offering.

This action follows a 1:12 reverse stock split of the company’s common stock last month.

*Post Update – Verenium Corporation announced today that it has priced an underwritten public offering of 2,250,000 shares of its common stock and warrants to purchase an additional 900,000 shares of common stock at a price to the public of $6.00 per unit. Each unit consists of one share of common stock and a warrant to purchase 0.40 of a share of common stock. The shares of common stock and warrants are immediately separable and will be issued separately. The warrants have a five-year term and an exercise price of $7.59. Net proceeds after estimated underwriting discounts and commissions and estimated expenses, will be approximately $12.3 million, providing the Company with several additional months of operating capital into 2010. The offering is expected to close on or about October 9, 2009, subject to the satisfaction of customary closing conditions.

Dyadic International, Inc. has recently announced that it has received approval from the U.S. Food and Drug Administration (FDA) for the use of its C1-derived cellulase enzyme. The enzyme is derived from a genetically modified strain of its patented C1 organism and is used in the fermentation of wine, beer and fruit juices. The approval is known as a “GRAS,” which acknowledges that the product is safe to use in its intended conditions of use.

Richard Jundzil, Dyadic’s Director of Development and Quality noted in a press statement, “Receiving this positive acknowledgment from the FDA regarding our GRAS notification culminates a multi-year product development process and affirms Dyadic’s conclusion that its cellulase enzyme is safe for use by our customers. Dyadic intends to continue to utilize its C1 technology platform for the development of additional specialty enzyme products.”

The enzyme is now offered is a new liquid enzyme product known as “CeluStar CL,” for use in the production of various beverages. The company also plans to identify, co-develop and licensing opportunities for the future production of products derived from C1.

“The new CeluStar CL product further expands Dyadic’s innovative specialty enzyme solutions available for sale to our global customers. CeluStar CL is a value-added enzyme that provides enhanced performance over a wide range of application conditions,” said Brian Murdoch, Dyadic’s Director of Sales.

Hydrogen will be part of the discussion at Energy & Environment Week… a look at new energy sources, including bioenergy with biomass heat & power and biogas; energy from waste & secondary raw materials recovery; alternative vehicle fuels including biofuels, hydrogen & electric mobility; and energy efficiency in industrial processes going on April 12-16, 2010 in Pittsburgh, PA.

This press release says the hydrogen portion of the conference is being organized by the Mountain States Hydrogen Business Council in association with Freesen & Partner GmbH on April 13-15, 2010.

The Mountain States Hydrogen Business Council, a non-profit trade association, is pleased to accept the invitation of Freesen & Partner GmbH to develop and conduct the hydrogen energy conference at EEW. Freesen is the producer of the EEW (www.ee-week.com) which will be held at the Pittsburgh Convention Center. The EEW will include four topical conferences: hydrogen, bioenergy, recycling and energy efficiency. The EEW is designed to raise the profile and intensity of renewable energy in the United States.

“The MSHBC conferences have received worldwide recognition for their quality and we believe their leadership in hydrogen will contribute to the impact of the EEW” stated Dr. Ines Freesen, managing director of Freesen & Partner GmbH.

This conference announcement comes after the MSHBC’s successful 5th Annual Hydrogen Energy Implementation Conference in Charleston, WV that was built around the opening of the hydrogen production and dispensing facility at Yeager Airport.

Sixty million gallons worth of biodiesel-producing equipment will go on sale next month at a location in New Jersey.

Minnesota-based Maas Companies is conducting the auction of six, 10-million-gallon lines that are brand new out-of-the-box operations at the Hampton Inn & Suites – Newark Harrison Riverwalk, 100 Passaic Ave, Harrison, New Jersey on November 12, 2009 at 11 am:

Equipment Selling as an Entirety or by the Line.

Currently Crated, Warehoused and Ready to Transport.

You can inspect the equipment for yourself on Thursday, October 15 10 am to 5 pm and Wednesday, November 11 10 am to 5 pm. In addition, you can see more pictures of the equipment here.