Domestic Fuel

A California-based biodiesel producer that makes the green fuel out of contaminated wastewater fats, oils and greases … better known as wastewater FOG … has been recognized internationally as a Technology Pioneer.

This press release from BioFuelBox says the World Economic Forum in Switzerland has selected the company as a 2010 Technology Pioneer:

The only waste-to-energy company to win this year’s prestigious award, BioFuelBox is being recognized for helping industrial and municipal partners reduce pollution and increase energy independence by transforming their highly contaminated wastewater
fats, oils and greases (wastewater FOG) into clean-burning biodiesel.

“We are proud to be honored by this award and for the recognition of BioFuelBox’s commitment and achievements addressing global waste-to-energy challenges,” said Steven Perricone, BioFuelBox’s CEO. “BioFuelBox Corporation’s proprietary NovoStream™ technology provides the most environmentally friendly solution for remediating wastewater FOG like trap grease, wastewater scum, industrial food processing DAF, and other wastewater FOG sources.”

Some other past winners of the Technology Pioneer award include Twitter, Google and PayPal.

The demand for biodiesel worldwide is expected to double by the year 2015. Fortunately, the supply is supposed to triple. Those predictions came from Tammy Klein, executive director of global biofuels services for Hart Energy Consulting, as she spoke at the recent Canadian Renewable Fuels Summit earlier this week in Vancouver, British Columbia.

Biodiesel Magazine reports that Klein told the group that North America is not the only place for biodiesel growth. Asia-Pacific and Latin America also have great potential:

Thirty countries are implementing biofuels targets in 2010 alone, she said, with many of these countries in the developing world encouraging biofuels as a means of building energy security and improving their rural economies. Biodiesel demand is expected to double between 2009 and 2015, while supply is expected to grow threefold. “Currently there is massive overcapacity on a global basis in the biodiesel industry and utilization rates are generally below 50 percent,” she added. Current global biodiesel capacity is already large enough to supply the demand projected for 2015 of 10 billion gallons per year.
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Growth Energy’s Winter 2009 issue of the Ethanol Retailer has just hit the streets. The NACS Report issue focuses on what retailers need to know when opening an ethenol blender pump station.

The cover story of this issue tells how retailers gave and took information about increased use of renewable fuels at the National Association of Convenience Stores (NACS) conference in Las Vegas in October. “There is a lot of interest from significant retailers that is driven, in part, by their need to comply with RFS2. I know a number of retailers that are doing everything they can to comply with that rule,” noted Scott Negley, Director of Alternative Energy for Dresser Wayne.

Other main features in the Ethanol Retailer magazine include the introduction of the Ethanol Retailer website; info on the 2010 FFV Purchasing Guide; how to clean a fuel tank in the conversion process; the MO Blender Pump Program; a first person story on a Hutchinson, Kansas blender pump retailer; and much more.

To view the Winter 2009 issue of the Ethanol Retailer, click here.

Ret. General Wesley K. Clark, who is the Co-Chairman of Growth Energy, will be speaking at the White House jobs summit today.

“Green Jobs” has been a hot topic since the new administration took office; yet not much traction has been gained in turning around unemployment rates, which are currently the highest since 1983. The summit was convened by President Barack Obama who took office during one of the country’s worst ever economic recessions. The goal of the forum is to conjugate business executives, economists and labor leaders to discuss ways to improve the economy and create jobs.

According to Growth Energy, Gen. Clark will be making remarks about the Administration’s plans to focus on stimulating the renewable energy industry, in an effort to remake the nation’s economy for more sustainable growth that is less dependent on debt and foreign sources of energy. Clark said that for too long, imported oil has held the nation’s economy “over a barrel.”

“Ethanol is the model for all successful renewable energy industries:  driven by technological innovation and with enormous potential for growth and job creation,” said Gen. Clark. “Ethanol is the only viable renewable, sustainable fuel we have in this country that is an alternative to gasoline refined from imported oil. It is being used today. And we can make it cleaner and greener every year – while creating jobs right here that can’t be outsourced.”

In other news, Tuesday Growth Energy recieved a letter from the EPA postponing the decision to act on the Green Jobs Waiver, until mid0-2010.

The Renewable Fuels Association (RFA) is seeking more clarification from EPA on its apparent focus on vehicles model year 2001 and newer when it comes to increasing the allowable ethanol blend level in gasoline to 15 percent. Such a limitation could potentially limit once again the market for ethanol by excluding some 40% of the vehicle market and causing both consumer confusion and retailer unwillingness to offer the product.

In its letter, the EPA stated, “Although all of the studies have not been completed, our engineering assessment to date indicates that the robust fuel, engine and emissions control systems on newer vehicles (likely 2001 and newer model years) will likely be able to accommodate higher ethanol blends, such as E15.”
The RFA wrote EPA Administrator Lisa Jackson today seeking more details on this apparent limitation to the waiver.

According to RFA President Bob Dinneen, “Such a bifurcation would create unnecessary and burdensome requirements for fuel retailers, as well as confusion for consumers. It is unlikely that retailers would be willing to offer both an E15 blend for newer model vehicles and E10 or less for older models. This scenario could effectively result in no increase in ethanol use, despite an approval of higher level blends.”

Listen to comments from Dinneen about this issue in this edition of “The Ethanol Report.”

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The “smart choice in personal navigation” just got smarter.

The Renewable Fuels Association (RFA) has released a new GPS application for TomTom users that maps out the location of E85 stations for flex-fuel vehicle (FFV) drivers. RFA also released a similar GPS application for the Garmin GPS device last week.

“We are continuing to explore new ways to connect the consumer with ethanol-blended fuels,” says Robert White, RFA Director of Market Development. “TomTom and Garmin represent 67% of all GPS devices sold in the United States, and with our cooperation with the Department of Energy on station locations, this will continue to yield great results.”

The TomTom application will sort the closest E85 fueling stations to the user’s location and their chosen destination. This application is available as a national database, which includes all E85 fueling locations across the United States. FFV owners can download this application to their GPS device, either TomTom or Garmin, with a few simple steps by going to ChooseEthanol.com.

It’s that magical time of year when the mailman delivers those magical season cards that we all look forward to seeing. No, I’m not talking about Christmas cards. I mean those cards reminding us that the 2010 National Biodiesel Conference & Expo is just around the corner.

This year’s premier event for the biodiesel industry is being held Feb. 7-10, 2010 at the Gaylord Texan Resort & Convention Center in Grapevine, Texas, just a few minutes from the DFW airport. NBB officials say they have listened to past attendees and exhibitors to make the conference even better:

From our new Monday evening reception in the Exhibit Hall, the addition of a new Biodiesel Networking Center in the Exhibit Hall, a new and improved NBB Connections social networking system to the numerous open forum “round table sessions” that will be offered this year, NBB wants to assist in these efforts to connect and learn! We believe these additions and changes to the program will create boundless networking opportunities and allow you to meet new people with some of the same biodiesel interests. Where better to meet than the premier biodiesel conference in the country?

Make your reservations here. Hope I get to see you in Texas!

The company building a proposed wind farm off the coast of Massachusetts possibly has found a market for its wind energy … once it starts actually generating the green power.

Wind energy company Cape Wind and utility National Grid are negotiating a long-term contract for the utility to purchase the electricity generated by the proposed wind farm in Nantucket Sound. According to a press release from Massachusetts Governor Deval Patrick, this agreement is critical for the project to get financing so it can be built in time to get Stimulus Bill money … reducing costs for the builders by 30 percent:

“For both reducing greenhouse gas emissions and launching the offshore wind industry that will achieve those reductions, it is essential for Cape Wind, like offshore wind in general, to move from wishful thinking to reality,” said Governor Patrick. “A contract with an electric distribution utility like National Grid will move Cape Wind one step closer to reality.”

The power purchase arrangement still has to go through state regulatory review, but it is considered a major milestone for what could be the first offshore wind project in the U.S. The news is being welcomed by environmental groups:

“Anything that moves toward producing megawatts of clean renewable energy and creating the jobs associated with this can only be viewed as positive,” said Pam Solo, president, Civil Society Institute. “This is a critical development that provides the essential assurance Cape Wind needs to secure financing and get real steel in the ground.”

Clean Power Now Executive Director Barbara Hill said: “Clean Power Now will continue to work with the Governor’s office and his administration to ensure that the consumers throughout the Commonwealth, including the Cape and islands, will have the opportunity to not only realize the benefits of cleaner air, jobs and energy independence from the Cape Wind project but also by locking in a predictable, competitive price for many years.”

The Civil Society Institute is one of the initiating organizations of the 140-member TheClean.org (CLEAN), a collaboration of state and local organizations and individuals, lobbying for new energy policies. Clean Power Now is a non-profit organization that gives the public information about renewable energy projects and policies. The group has made wind energy off the shore of Nantucket its focus.

Pine Lake Corn Processors, LLC, a 30 million gallon per year ethanol plant, will most likely come out of bankruptcy with a new owner. The Steamboat Rock, Iowa ethanol plant filed bankrupcy a year ago and now has about $12 million in debt.

According to the Chicago Tribune, the company president Larry Meints said the company locked into high corn prices in the summer of 2008. When corn prices plummeted, Meints said Pine Lake didn’t contract enough ethanol at a high enough price to cover expenses.

“We ran out of cash,” Meints said. The Pine Lake problem mirrored that of VeraSun Energy Corp., which used to be the nation’s second-largest ethanol producer. They declared bankruptcy in October 2008. Both companies locked into contracts for corn when it was high, which soared to nearly $8 per bushel in June 2008. At the same time, ethanol was at nearly $3 per gallon. Then, the market dropped and corn dropped to $3 per bushel. Ethanol then went for about $1.50 per gallon.

A bankruptcy judge will decide Friday whether to turn Pine Lake Corn Processors over to a new partnership.

Yesterday I wrote about one of the major challenges facing leaders who will be participating in the Copenhagen Climate Conference – global warming. Today, I’m addressing a second major issue facing the leaders – stopping deforestation. There is a misnomer that the main driver of deforestation is the increased production of biofuels. While there is a correlation between biofuels and deforestation, it is minor compared to the real driver – the trees are worth more cut down than they are standing. Let me explain.

Some of the poorest people in the world reside in the regions in and around the Brazilian Amazon rainforest. To survive, they cut down the trees and sell them. Although there have been attempts to ‘block’ this wood from international markets, these efforts have not been successful. Once the trees are cut down, cattle farmers move in and once the land has been over-grazed and the cattle move on, farmers often begin growing soybeans. Another point of interest is that sugarcane does not grow well in the Amazonian region; however, laws have been passed that prohibit the expansion of sugarcane production on native vegetation.

According to The Breakthrough Institute, “The main drivers of Amazonian deforestation are socio-economic. Yet decades of environmental policy have failed to take this basic truth into account.” If we’re going to keep the rainforest intact, then the people who live in the region will need to be given new opportunities to generate wealth that are worth more then selling the trees.

During the climate talks next week, leaders will be attempting to create policies that will address the urban poverty drivers of deforestation. I was in Brazil last week and in prepartion for the meetings, the Brazilian Climate Alliance has prepared a report with recommendations to reduce/climate deforestation. The proposed policies will be released during the conference and the world will be watching.

The National Corn Growers Association is both pleased and disappointed by the Environmental Protection Agency announcement this week to delay final action on a waiver that would allow up to 15 percent ethanol blends in regular gasoline.

“While we are disappointed the Environmental Protection Agency has chosen to postpone its decision on the higher ethanol blends, we are pleased the positive tone of their response shows an understanding of the importance of moving to higher blends in the very near future,” said NCGA President Darrin Ihnen. “We are confident that the Agency’s further research will support our position. Further, NCGA feels strongly that EPA should work quickly and expeditiously to move toward higher blends and we look forward to working with the ethanol industry to make this happen.”

The waiver request was supported by NCGA, key ethanol organizations and thousands of farmers and others from around the country who provided comments to EPA on the importance of allowing higher level blends of ethanol in gasoline to reduce our nation’s dependence on foreign oil.

Biofuels Digest has announced its “Hottest 50 Companies in Bioenergy” for 2009/2010. The top of the list? Solazyme, a company specializing in developing renewable oils.  The list is determined by a combination of a 75-member panel of international selectors and votes from Biofuels Digest subscribers, and is one of the most coveted by bioenergy companies.

Last year, Solayme was ranked #6 and in the top seat was Coskata. This year’s #2, POET, was ranked #4. Several of last year’s top 10 companies failed to make the top 10 this year including Virent Energy, Range Fuels and UOP which this year were ranked #21, #14 and #12 respectively.

Rounding out the top 10:
1. Solazyme
2. POET
3. Amyris Biotechnologies
4. BP Biofuels
5. Sapphire Energy
6. Coskata
7. DuPont Danisco Cellulosic Ethanol
8. LS9
9. Verenium
10. Mascoma

This year more than 1,000 companies were elegible for the list and 311 received votes. Click here for Biofuels Digest’s complete coverage.

Yesterday, in the post Countdown to Copenhagen, I mentioned that there are still quite a few scientists around the world who agree that climate change exists, but don’t agree about the cause. To kick off my three views in seven days series, is a review of the book, “The Chilling Stars A New Theory of Climate Change.” The authors are climate physicist Henrik Svensmark and award winning science writer Nigel Calder.

Let me start off by acknowledging that the majority of scientists believe that greenhouse gas emissions, primarily CO2, are causing global climate change. However, here is what Svensmark and Calder say about carbon dioxide. “To correct apparent over-estimates of the effects of carbon dioxide is not to recommend a careless bonfire of the fossil fuels that produce the gas. A commonplace libel is that anyone skeptical about the impending global-warming disaster is probably in the pay of the oil companies.”

They continue, “In fact, there are compelling reasons to economize in the use of fossil fuels, which have nothing to do with the climate–to minimize unhealthy smog, to conserve the planet’s limited stocks of fuel, and to keep energy prices down for the benefit of the poorer nations.”

So if climate change is not driven in part by CO2, as argued by the authors, then what is the primary driver of climate change?

The premise of Svensmark’s climate change theory is that the interplay between clouds, the sun and cosmic rays, have a greater effect on climate than man-made carbon dioxide. For those who don’t remember much of any science from high school or college a cosmic ray is comprised of sub-atomic particles from exploded stars.
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The University of South Carolina has launched an ambitious program that will convert all of its campus vehicles to biodiesel, ethanol and more green fuels.

This press release from the school says the “Genesis 2015 Initiative” will reduce the campus fleet’s carbon dioxide emissions by 90 percent within five years:

The plan puts Carolina among the nation’s first campuses committed to reducing its dependence on petroleum by introducing alternative fuels to power the buses, cars, trucks, motorcycles and maintenance vehicles needed in the everyday life of the university…

Within five years, all vehicles on the Columbia campus will be powered by ethanol, biodiesel, liquefied petroleum gas (LPG), electricity or hydrogen fuel cells. A hydrogen hybrid bus will become part of the university’s shuttle service in January.

University officials say they already have 156 vehicles that can be converted to run on alternatives right away. The total carbon savings is expected to top 2,000 tons.

Agriculture Secretary Tom Vilsack has responded to the Environmental Protection Agency’s (EPA) postponement of the E15 Waiver request.

In a statement issued by the United States Department of Agriculture (USDA), Vilsack said, “We are very encouraged that the results of the tests of E15 in newer model cars have been positive. The Environmental Protection Agency’s (EPA) movement towards developing an effective labeling rule sends a strong signal about the future viability of the biofuels industry. Biofuels are a vital component of America’s energy future, helping to break our dependence on oil. This commitment reflects the Obama Administration’s support for a strong biofuels industry helping to increase income for farmers and jobs in rural America.”

In other news, the industry is still waiting to hear EPA’s announcement of the Renewable Fuel Standard (RFS) for 2010. which were to have been released by November 30. The number for 2009 was 10.21 percent of all gasoline sold or approximately 11 billion gallons. The RFS is used by obligated parties including refiners, importers and blenders to determine their renewable fuels obligation. Compliance is monitored through the Renwable Indentificaion Number, or RINs. The notice is required under section 211(0) of the Clean Air Act as amended by the Energy Independence and Security Act of 2007 which was signed into law on December 17, 2007.