Domestic Fuel

It’s been a long time in the making, but the Environmental Protection Agency has finally released the new Renewable Fuels Standard … better known as RFS-2.

The standard requires that biofuels will have to reduce greenhouse gas emissions compared to the gasoline and diesel fuels they displace and grow in production from last year’s 11.1 billion gallons to 36 billion by 2022, with 21 billion gallons to come from advanced biofuels. It’s expected to replace more than 328 million barrels of non-renewable petroleum a year and reduce greenhouse gas emissions more than 138 million metric tons annually when fully implemented.

While admitting it might not be perfect, RFS-2 is being welcomed by representatives of the ethanol and biodiesel industries.

In this edition of the Domestic Fuel Cast, we’ll here from EPA Administrator Lisa Jackson, Secretary of Agriculture Tom Vilsack, as well as Tom Buis with Growth Energy, the Renewable Fuels Association‘s Matt Hartwig, and the National Biodiesel Board‘s Michael Frohlich.

They all have interesting takes on what the new standard will bring in the short and long terms, and you can here what they have to say here: DFCast-2-04-10.mp3

Podcast: Play in new window | Download (4.1MB)

Along with other industry groups, the Colorado Corn Growers Association is pleased with the U.S. Environmental Protection Agency’s (EPA’s) action to expand the federal Renewable Fuel Standard. In a press release, Colorado Corn noted that it further validates the value of corn-based ethanol as an environmentally sound renewable fuel.

“The EPA recognizes corn-based ethanol is clearly superior to regular gasoline when it comes to greenhouse gas emissions,” said Mark Sponsler, CEO of Colorado Corn. Ethanol blended into gasoline has proven to be a viable and sustainable renewable fuel.

According to EPA, the Renewable Fuels Standard for 2010 will be set at 12.95 billion gallons. The total standard will increase gradually to 36 billion gallons in 2022. Corn-based ethanol already meets the required minimum greenhouse gas reduction as required by EPA, which found ethanol can reduce greenhouse gases by more than 20 percent.

“Among the advantages the EPA identified of all renewable fuels are higher net farm income, lower dependence on foreign oil, and a reduction in greenhouse gases,” added Sponsler. “The expansion of the nation’s Renewable Fuel Standard will lead to additional development of the nation’s renewable fuels industry, which means more jobs for rural America and new markets for corn growers.”

It’s a busy day for the federal government. Here is what has happened today. The EPA has released its expanded rules for the Renewable Fuel Standard, The U.S. Department of Agriculture has proposed a rule on the Biomass Crop Assistance Program (BCAP) that would provide financing to increase the conversion of biomass to bioenergy, and the President’s Biofuels Interagency Working Group released its first report – Growing America’s Fuel. The report was co-authored by co-chairs Secretaries Vilsack and Chu along with EPA Administrator Lisa Jackson and lays out the strategy to advance and bring to market sustainable biofuels.

“Advancing biomass and biofuel production holds the potential to create green jobs, which is one of the many ways the Obama Administration is working to rebuild and revitalize rural America,” said Agriculture Secretary Tom Vilsack. “Facilities that produce renewable fuel from biomass have to be designed, built and operated. Additionally, BCAP will stimulate biomass production and that will benefit producers and provide the materials necessary to generate clean energy and reduce carbon pollution.”

Several industry organizations responded to the report today including the American Coalition for Ethanol (ACE) and Growth Energy.

“We welcome this new vision focused on biofuels production targets, and we encourage equal if not greater attention on distribution and creating long-term, sustainable demand for today’s corn ethanol and the next generation of biofuels,” said Brian Jennings, Executive Vice President of ACE.  “Approving the pending E15 waiver request, requiring the production of more Flexible Fuel Vehicles (FFVs), and providing incentives for the installation of blender pumps to dispense mid level ethanol blends all need to occur if we are to ensure that both corn ethanol and the next generation of biofuels can make good on their promise to reduce our dependence on foreign oil.”

Growth Energy CEO, Tom Buis agreed with Jenning’s statement and added, “Growth Energy commends President Obama for recognizing the value of grain ethanol and the need to move forward with cellulosic ethanol to help our nation meet the goal of producing 36 billion gallons of renewable fuels by 2022. The President understands the need for enhanced support for the existing ethanol industry and greater investment to create jobs, improve our environment and increase our national security.”

The Environmental Protection Agency (EPA)  made an upwards revision today when releasing the expanded Renewable Fuels Standard. They gave corn-based ethanol a 21 percent advantage over conventional gasoline, more than what was originally slated. This new revision also qualifies all corn ethanol, including existing and new production, for the conventional biofuels targets in the RFS.

“While we’re pleased that the U.S. EPA recognizes corn ethanol’s distinct advantage over gasoline when it comes to greenhouse gas emissions and gratified that EPA modified ethanol’s carbon footprint calculation to more accurately reflect real-world data, we don’t believe the agency’s overall assessment of ethanol’s greenhouse gas reduction potential was good enough or accurate,” said Brian Jennings, Executive Vice President of ACE.  “By continuing to apply scientifically indefensible ‘international indirect land use’ penalties to corn ethanol, these regulations seriously underestimate ethanol’s greenhouse gas benefits over oil while completely ignoring the indirect emissions associated with petroleum – for example, the military protection of world oil supplies and oil transportation routes.”

One of the complaints of indirect land use change  (ILUC) theory is that it is not based on sound science or real data but simply derived using computer modeling. When ILUC theory is eliminated from the equation, corn-based ethanol’s GHG reductions are significantly higher – 61 percent according to ACE who comnissed the study, “Lifecycle Analysis of Greenhouse Gas Emissions Associated with Starch-Based Ethanol.”

Among the key findings of the report: “the scientific literature available to date shows a huge variation in estimates of carbon release from land clearing in general, on the order of 50 percent plus or minus – a huge margin of error that should not be relied upon to make policy.”

Jennings concluded, “America’s ethanol producers are committed to providing a clean, renewable fuel that supports the nation’s economy through job creation and reduces our dependence on foreign oil. The revisions in this proposed rule are a positive step by EPA, but corn-based ethanol must not be unfairly singled-out for penalty based on the indirect land use change theory.”

This afternoon, Growth Energy responded to the Environmental Protection Agency’s expanded Renewable Fuels Standard, that will create the platform for reaching 36 billions gallons of biofuels by 2022, and specifically praised the Obama administration and EPA Administrator Lisa Jackson.

“Growth Energy commends the Obama White House and EPA Administrator Lisa Jackson for recognizing the value of domestic ethanol both as a low-carbon fuel and as a U.S. jobs creator. The expanded Renewable Fuels Standard released today rightly puts an emphasis on America’s growth energy – ethanol – and that in turn will help our economic recovery, strengthen our national security and clean our skies,” Tom Buis, CEO of Growth Energy, said.

The Association noted several improvements to the rule including the decision to make volume levels of domestic ethanol retroactive to the first of the year. Technically, the blending levels for 2010 were to have been announced back in November but the EPA held off on determining those levels until they completed the new rules.

“Further, we’re pleased that EPA recognizes grain ethanol as a low-carbon fuel, and changed its indirect land use change penalty from its original proposal last year. However, while we appreciate that the EPA recognizes the uncertainty of ILUC, the fact remains that ILUC is still in the rule. This puts the cart before the horse, and our position is that ILUC should not be applied in regulation until we have a thorough, long-term study of the issue,” continued Buis.

Another area of concern lies in the fact that ILUC gives favoritism to Brazilian sugarcane ethanol, thus opening the door to a reliance on foreign energy once again.

Buis concluded, “Further, by using skewed ILUC calculations, the RFS gives Brazilian sugarcane ethanol preferred status as an advanced biofuel. I don’t think that was the intent of Congress when it passed the Energy Independence and Security Act. It won’t make the U.S. any more energy independent by switching our addiction from foreign oil to foreign ethanol.”

*Post update*
Listen to or download an interview with Tom Buis on Growth Energy reaction to the RFS2 rule here:

Podcast: Play in new window | Download (6.1MB)

Industry reaction to the Environmental Protection Agency announcement today of much-delayed rules for the second phase of the Renewable Fuel Standard has come quickly and is mostly positive.

In this edition of “The Ethanol Report” podcast, Matt Hartwig with the Renewable Fuels Association talks about their reaction and what the rule means for the industry.

You can subscribe to this twice monthly podcast by following this link.

Listen to or download the podcast here:

Podcast: Play in new window | Download (4.8MB)

The ethanol and agriculture industry have a few things to celebrate today, one of which is EPA’s acknowledgment that ethanol, including corn-based ethanol, has greenhouse gas emission advantages over conventional gasoline. Today, the Environmental Protection Agency (EPA) announced its new released regulations for the implementation of the Renewable Fuel Standard (RFS2) which in part outlines the country’s move to 36 billion gallons of biofuels by 2022 while reducing GHG emissions in the fuel.

“We’re pleased the U.S. Environmental Protection Agency recognizes that corn ethanol provides a distinct advantage over conventional gasoline when it comes to greenhouse gas emissions, with a reduction of more than 21 percent in some cases,” said National Corn Growers Association (NCGA) President Darrin Ihnen. “This means that all corn ethanol including existing grandfathered capacity and new production will qualify to meet the conventional biofuels targets in the RFS.”

However, like others in the ethanol industry, NCGA is frustrated with EPA’s continued use of indirect land use theory, a piece of “flawed science” say industry supporters. Ihnen stressed that the EPA should reject the unproven theory of international indirect land use change, which assumes that growing more corn means planting corn on a proportionately greater amount of acreage and will impact other crops or natural resources on a global basis. Today’s yield trends show this to be false. 2009’s record corn yield was 165.2 bushels per acre, according to the U.S. Department of Agriculture, more than 11 bushels higher than 2008 and nearly 15 bushels higher than 2007.

One of the inherent problems with indirect land use is that it is only applied in the case of corn ethanol. “This is the perfect example of bad science being applied unfairly,” said Ihnen. “Removing the impacts from the international indirect land use theory means that corn ethanol actually provides a 52 percent reduction in greenhouse gas emissions, compared to gasoline. The EPA is not considering similar indirect impacts of petroleum-based fuels, so why are they so stringent when it comes to green, renewable corn ethanol?”

After a two-month delay, the Environmental Protection Agency (EPA) has finally announced the final rule for the implementation of the second phase of the Renewable Fuel Standard, aka RFS2. As part of the rules, the EPA will both set the national mandatory blend levels as well as monitor compliance through its new reporting system. The monitoring system will also track carbon emissions of fuels which will be required to be reduced as the RFS progresses.

“EPA was right to recognize that ethanol from all sources provides significant carbon benefits compared to gasoline,” said Renewable Fuels Association President Bob Dinneen. “As structured, the RFS is a workable program that will achieve the stated policy goals of reduced oil dependence, economic opportunity, and environmental stewardship.”

Dinneen continued, “The RFS is the public policy building block upon which America’s renewable fuels industry will be built. Today’s industry and tomorrow’s ethanol producers require stable federal policy that provides them the market assurances they need to commercialize new technologies. To that end, EPA has achieved that goal.”

RFA expressed their disappointment once again with EPA’s reliance on unproven science and reiterated that regardless of what “science” is used for the GHG calculations, all ethanol boasts an improvement over gasoline. Despite the areas where RFA disagrees with the new rules, they stated, “At the end of the day, the RFS is public policy that can and will work effectively.”

Click here to read RFA’s full response to the rules.

Listen to “The Ethanol Report” for an interview with RFA’s Matt Hartwig on the decision.

While soybean-based biodiesel has been unfairly knocked at times for not being as environmentally friendly as it should be, a new study shows just how green fuel from the bean really is.

A new peer-reviewed life cycle profile released by the United Soybean Board (USB) documents multiple energy and environmental benefits of U.S. soybean farming and processing, including biodiesel. This press release has details:

“This profile is the first comprehensive life cycle study covering U.S. soybean production through four major biobased products,” said Wynne, Arkansas soybean farmer John Cooper, a USB Director and Member of the USB Domestic Marketing Committee. “U.S. soy already delivers environmental and energy benefits. It’s exciting to see the trends point to even more in the future.”

A key objective was to update life cycle inventory (LCI) databases for soybean production and processing as well as conversion into four key soy-derived feedstocks (methyl soyate, soy lube base stock, soy polyol, and soy resin) used in fuel and industrial products. Its cradle-to-gate scope begins with soybean farming (the cradle) and goes through processing of products (the gate).

Another important aspect of this study is that it’s based on U.S. agricultural data for the 2001-2007. The data the Department of Energy’s U.S. Life Cycle Inventory is based on comes from 1998 to 2001. And it contains soybean crushing information not previously available.

Our friends at OriginOil, Inc. have developed a comprehensive pilot system for algae growth and harvesting.

This company press release says OriginOil unveiled the system during an event at its Los Angeles headquarters:

At the event, Riggs Eckelberry, OriginOil CEO, spoke to the assembled group of core investors, celebrities and members of the press. “I’m very proud of our team that has worked so hard over the months to make our technologies work in a complete pilot system,” he said. “Until now we have been in pure research and development. Now we have turned the corner to commercialization of our technologies. It’s a historic milestone for us.”

At the heart of the new system is a series of 200-gallon tanks which can be individually configured and managed for various strains, growth strategies, and lighting geometries. The tanks are now illuminated with LED light sticks submerged in icicle-like arrays. A stirrer circulates the algae slowly around the lights.

The system uses an integrated extraction system, a combination of ultrasound generation and low-power electromagnetic pulsing, which you can see in the link of the time-lapse video on the right. It will crank out 5 gallons a minute and also uses a series of settling tanks to separate the oils and biomass. Finally, a water recycling system completes the loop so the process can start again.

See more for yourself at www.originoil.com.

Ohio-based Biodiesel Analytical Solutions is teaming up with Minnesota’s Mcgyan Biodiesel, LLC to offer a commercial version of Mcgyan’s cutting-edge biodiesel process technology. A company press release touts the process as something that will “revolutionize an antiquated process and revitalize the withering industry,” and you can see the two companies kick-off their partnership next week at booth #906 at the 2010 National Biodiesel Conference & Expo, in Grapevine, Texas:

Mr. Steven Rupp, president of Mcgyan Biodiesel, LLC, explains, “Mcgyan and BAS will offer the world market a one-stop shop for the cutting-edge Mcgyan® biodiesel process technology. Our comprehensive package of value-added services will include site selection, technology licensing, plant design, plant engineering services, remote plant monitoring, supply of catalyst and other core plant equipment, plant management, plant operator training, feedstock prequalification & procurement, and final product marketing. By offering a turnkey solution to those passionate about investing in the creation of biodiesel production facilities, Mcgyan and BAS will ensure that the Mcgyan Biodiesel brand becomes synonymous with the highest quality biodiesel fuel product on the market.”

Mr. Mark Fashian, president of Biodiesel Analytical Solutions, notes, “the BAS sales force is excited to sell this technology. We believe this process will single-handedly revitalize the biofuels market worldwide.” Mr. Fashian went on to say that “BAS is the premier quality laboratory sales and service provider in the biodiesel industry. It is a perfect fit for our team to also sell a process that consistently
produces ASTM D6751 compliant biodiesel to an industry that has been struggling to meet compliance with the traditional process technologies that have been used since the 1930s.”

The Mcgyan® biodiesel process technology has been around for about three years and combines triglycerides or free fatty acids with an alcohol to produce biodiesel. Usually, large-scale production of biodiesel using triglycerides has some unwanted side reactions that produce soaps and uses numerous water-intensive neutralization and fuel washing steps. But the Mcgyan process overcomes most of these issues and allows for the ultrafast continuous production of biodiesel without waste and unwanted glycerol byproducts. Check ‘em out at the National Biodiesel Conference & Expo!

ZeaChem released the results of its recent fermentation results of acetic acid, used in the conversion of biomass to biofuels. According to the company, the results demonstrated successful process scaling to a level that is 10,000 time greater than the standard scale used in lab tests. Fermentation units were scaled from 0.5 liter to 5,000 liters. Acetogens, which are naturally occurring, are highly robust and unlike yeast, produce no carbon dioxide during the fermentation process.

A ZeaChem Inc. engineer stands in front of a 5,000 liter fermentation tank at Hazen Research, Inc

The company has been collaborating with Golden Colorado-based Hazen Research on the tests. Hazen constructed and hosted the initial front-end process unit and provided the infrastructure and operational support. The initial test exceeded ZeaChem’s time goals for achieving the concentration level, greater than 50 grams of acetic acid per liter in less than 100 hours, as well as exceeded commercial acceptable acetic concentration levels.

“ZeaChem has met and exceeded its concentration and rate fermentation targets,” said Jim Imbler, president and chief executive officer of ZeaChem. “We now have sufficient evidence, based on mixed sugars, to indicate that our results are scalable to industrial production levels. Our process, using naturally-occurring acetogen bacteria and existing processes, exceeds the commercially viable threshold for fermentation. ZeaChem is meeting its milestones and continuing to move forward in deploying cellulosic biorefinery technology.”

Acetic acid is the first step in the hybrid biochemical and thermochemical process for creating cellulosic ethanol and bio-based chemicals, and the company’s next step is to concentrate and purify the ZeaChem produced acetic acid into a salable product, using an energy efficient, non-distillation based process. The company plans on building a 250,000 gallon per year facility in Boardman, Oregon and anticipates that the facility will be in production by the end of 2010.

Retech 2010, the Renewable Energy Technology Conference and Exhibition, kicks off in Washington, DC tomorrow. The conference is co-produced by the American Council On Renewable Energy (ACORE) and TradeFair Group. Nearly 300 exhibitors from all sectors of renewable energy are expected to participate.

In addition to the exhibition, there is a Business Conference that will feature more than 250 speakers sharing their insights and knowledge about alternative energy. There are several parallel tracks that will be held during the three days with concentrations on core areas including geothermal, wind, solar, hydro, biomass, biofuels, and waste energy. Additional hot topics encompass the  challenges and opportunities in the green electricity and green building sectors along with industry leaders discussing the innovative, comprehensive and entrepreneurial strategies that will be needed to ensure the sustained growth of the renewable energy industry.

Poet CEO Jeff Broin will discuss ethanol’s impacts during the opening plenary session on Wednesday along with Carol Browner, Assistant to the President for Energy and Climate Change as well as other leaders in the energy and the environmental arena. In addition, Doug Berven, Poet’s Director of Corporate Affairs, will also be speaking and is part of the panel discussion “Research and Development: Conventional Biofuels” to be held on Friday.

Click here to learn more about Retech 2010.

There is no shortage of potential feedstocks for biofuels and yesterday, Evogene Ltd based in Rehovot, Israel announced that it will be conducting field trials in Texas and Brazil of its proprietary castor bean lines. The trials will be conducted in conjunction with Texas AgriLife Research in Texas, which is part of the Texas A&M System, and South Cone Agriculture in Brazil. This is the first round of trials outside of Isreal and the castor beans have been designed for higher yield and growth on semi-arid land making it a candidate for second generation biofuel production.

According to Evogene, the purpose of the field trials in Texas and Brazil is to evaluate the lines when grown in the two main target locations for future commercial growth, and further develop them to local conditions. The semi-arid land potentially available for castor commercial growth in these areas is estimated at over 10 million hectares and the climate conditions are suitable for this purpose.

In a company statement, Ofer Haviv, Evogene’s President and CEO said, “During the past few years, in addition to our well-established and rapidly growing agbio trait activities, our biofuel activity has grown with the castor project being a key component. Both the U.S.A. and Brazil have strong potential in terms of land availability, commitment to biofuels and ability to develop large scale agriculture industries. We look forward to working with the professional teams at Texas AgriLife Research and South Cone Agriculture to test our castor lines and further develop them towards commercialization.”

Evogene selected castor beans in part due to the growing demand of biodiesel in Brazil and America, although the biodiesel industry in the U.S is currently undergoing some challenges with the expiration of its tax credit. The biodiesel industry is working furiously to get this, other other safe guards that will continue to move the industry forward, into place.

“There is an immediate need for a sustainable, widely available and cost efficient second-generation plant feedstock for biofuels. We believe that the castor bean varieties Evogene is developing can provide a solution for the industry,” concluded Haviv.

Renewable fuels are the backbone of Iowa’s economy, according to a report released last week by the Iowa Renewable Fuels Association (IRFA).

According to the report, “Contribution of the Biofuels Industry to the Economy of Iowa,” ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa and makes a significant contribution to the state’s economy.

* Accounts for nearly $11.5 billion, or about 8 percent, to Iowa GDP
* Generates $2.3 billion of household income for Iowa households
* Supports more than 70,000 jobs through the entire Iowa economy
* Boosts state tax revenue by $532 million.

“That is an awesome success story,” said IRFA Executive Director Monte Shaw in his address at the 4th Annual Iowa Renewable Summit. “At the same time, we must not rest on our laurels. Iowa and the nation must move quickly to realize the full promise renewable fuels represent.”

Shaw says that means approving ethanol blends up to 15 percent nationwide and for Iowa, urging the Iowa legislature to enact an E10 Fuel Quality Standard so that all gasoline in the state would contain at least 10 percent ethanol. “Why shouldn’t Iowa say that E0 poses too high a cost to our economy and our energy independence? Shouldn’t Iowa lead the way to make E10 the standard fuel with E15 available for those who choose it?” Shaw questioned.

Shaw also called on Congress to restore the federal blenders tax credit for biodiesel and for EPA to implement the federal RFS2 biodiesel usage requirement. “If we can couple those two federal actions with a B5 fuel quality standard here in Iowa, it will go a long way toward restarting Iowa’s 15 biodiesel plants,” he said.