Domestic Fuel

A market research and advisory firm is predicting that camelina will be the feedstock for a billion gallons of biofuels a year by the year 2025.

In their new report, entitled “Camelina Aviation Biofuels Market Opportunity and Renewable Energy Strategy Report,” researchers at Biomass Advisors say the non-food energy crop will be producing biofuels for the aviation and biodiesel sectors, accounting for 25,000 new jobs, more than $5.5 billion in new revenues and $3.5 billion in new agricultural income for U.S. and Canadian farmers:

The report follows recent announcements by Sustainable Oils and Alt-Air, among others, to provide 100 million gallons of Camelina-based jet fuel to a consortium of 15 airlines starting in 2014. Camelina Aviation Biofuels provides an objective, in-depth assessment of Camelina and the market drivers behind aviation industry activity…

The forecast is based on multiple factors including available land, historical trends in land-use change, and crop yields. It also includes an overview of relevant biofuel market and policy drivers, as well as emerging legislation and regulation creating a market for sustainable energy crops like Camelina. The report provides a detailed analysis of Camelina economics, including biofuel feedstock costs, petroleum parity analysis, and a summary of more than 75 Camelina research projects in over 20 U.S. states.

The researchers credit what looks like the upcoming renewal of the federal $1-a-gallon biodiesel tax incentive and camelina’s ability to defuse the food versus fuel argument for their optimism about the grain.

Three acres of farmland in northern Iowa could soon be home to a 3-million-gallon-a-year biodiesel plant.

The Mason City Globe Gazette reports that the Mt. Valley biodiesel refinery, using grease, soy, sunflower seeds in a closed-loop, emissions-free facility, will be the first of its kind for the Hawkeye State:

“The land here has always been very productive,” [Byron] Tweeten, chairman and CEO of refinery owner Growth Design Corp., said Wednesday during an informational meeting for neighbors and potential investors at his home. “And why not use a small portion of it to build economic development in this area, create jobs, and do something great for the nation, called ‘bring us to energy independence by using waste for renewable energy’?

Groundbreaking on the $8.5 million project will be in May, contingent on completion of an environmental assessment by the U.S. Department of Agriculture.

Construction is expected to take about nine months.

The Renewable Fuels Association today praised the Renewable Fuels Reinvestment Act (RFRA) introduced by Representatives Earl Pomeroy (D-ND) and John Shimkus (R-IL). The bill would extend the $0.45 Volumetric Ethanol Excise Tax Credit (VEETC), commonly called the blenders’ credit, and the secondary tariff on imported ethanol until December 31, 2015. It would also extend the Small Producers Tax Credit and the Cellulosic Ethanol Production Tax Credit to January 1, 2016.

“Passage of the RFRA will provide investors with the long term stability needed to bring next generation technologies to commercialization. Likewise, it allows current ethanol producers to invest with confidence in new efficiencies to further improve upon ethanol’s economic and environmental benefits,” said Renewable Fuels Association President Bob Dinneen. “Representatives Pomeroy, Shimkus and their fellow cosponsors are showing tremendous leadership and foresight. I urge all members of Congress to take this opportunity to learn the real facts about American ethanol production and, ultimately, pass this bill as soon as possible.”

Last week, the RFA released a study detailing the damage that would be inflicted upon the domestic ethanol industry if the tax credits were allowed to expire, which would include the loss of 112,000 jobs and the reduction of domestic ethanol production by 38 percent.

Chuck Zimmerman interviewed Bob Dinneen, who participated in a press conference today introducing the bill. Listen to or download that interview here:

Podcast: Play in new window | Download (1.6MB)

Representatives Earl Pomeroy (D-ND) and John Shimkus (R-IL) have called a press conference today to introduce the Renewable Fuels Reinvestment Act (RFRA). The bill would extend the $0.45 Volumetric Ethanol Excise Tax Credit (VEETC), commonly called the blenders’ credit, and the secondary tariff on imported ethanol, as well as the Small Producers Tax Credit and the Cellulosic Ethanol Production Tax Credit.

The two lawmakers circulated a letter this week to their colleagues seeking co-sponsors. “Our legislation will provide meaningful long-term extensions of these tax credits, giving the industry the certainty it needs to maintain current production and continue to invest and develop the next generation of biofuels,” they wrote.

Representatives from the ethanol industry, including both the Renewable Fuels Association and Growth Energy, will also be participating in the press conference, scheduled for 1:30 pm Eastern time today.

It’s officially called the A-10 Thunderbolt II, but to the men and women who wear the blue of the U.S. Air Force, it is affectionately called the Warthog … and it’s real beauty will come in its upcoming test of biomass-based jet fuel.

Air Force News Service says a test pilot will attempt to fly an A-10 on a blend of biomass-derived and conventional JP-8 jet fuel, the first flight of an aircraft powered solely on a biomass-derived jet fuel blend:

The biomass-derived fuel used for this event is referred to as hydrotreated renewable jet, or HRJ, and is part of a class of fuels derived from either plant oil or animal fat feedstocks. The feedstock source of the biomass powering the A-10 demonstration is camelina oil, a flowering plant in the same family as mustard, cabbage and broccoli, but not used as a food-source.

This event marks the next phase in the Air Force’s alternative aviation fuel program and represents a milestone in worldwide development of alternative aviation fuels, paving the way for future Air Force HRJ certification flight tests of the F-15 Eagle, F-22 Raptor and C-17 Globemaster III to begin this summer.

This flight is part of the Air Force’s goal to get half of its domestic aviation fuel from an alternative fuel blend by 2016.

Pennsylvania residents might soon take the chill off their cold winter nights (and cool spring, summer and fall days and nights) with a dose of biodiesel.

This post from Heatingoil.com says a new bill introduced in the state legislature by Sen. Ted Erickson would require heating oil to be blended with biodiesel, as well as lowering the sulfur content in regular diesel:

The bill in Pennsylvania would amend a 2008 bill known as the Biofuel Development and In-State Production Incentive Act. The low-sulfur mandate would go into effect on May 1, 2011; heating oil in Pennsylvania is currently allowed to have a sulfur content of up to 2,000 parts per million. The requirement for heating oil to include 10 percent biodiesel would go into effect on May 1, 2013.

The post goes on to say the Pennsylvania Petroleum Marketers supports the bill, and the Keystone State could be joining other states in the Northeast that either already have or are proposing a biodiesel-in-heating-oil mandate.

According to the Associated Press, the Ohio Turnpike Commission has announced plans to open up two “green” rest areas, powered by renewable energy such as wind or solar power and they will carry E85.

The new service plazas will be built on both sides of the turnpike in Ohio’s Williams County. Along with E85, the facilities will allow for recharging of electric cars and cable and Internet hookups for parked trucks. The stops will also feature gas pumps, restrooms, restaurants and gift shops. The new facilities should open next year.

Currently, Ohio has 64 E85 locations throughout the state. Although details have not yet been released, the Ohio Department of Development will be offering grants to assist with additional E85 retail infrastructure. These funds are allocated for the current state budget ending in July 2011.

Virent Energy Systems of Wisconsin and Shell yesterday announced the successful start of production at the world’s first demonstration plant converting plant sugars into gasoline and gasoline blend components as an alternative to ethanol.

The plant is located in Madison, Wisconsin and is the latest step in a joint biogasoline research and development effort, announced by both companies in March 2008. The demonstration plant has the capacity to produce up to 10,000 gallons of the fuel each year, which will be used for engine and fleet testing. “This is an important milestone in being able to prove the technology is scalable,” Virent CEO Lee Edwards said during a telephone press conference announcement on Tuesday.

Company officials claim the new biofuel can be blended with gasoline in high concentrations for use in standard gasoline engines. The new product has the potential to eliminate the need for specialized infrastructure, engine modifications, and blending equipment necessary for the use of gasoline containing more than 10% ethanol.

Edwards said no timeline has been established yet for a commercial facility to come into production, but it will need to be defined within the next five years. “We have many milestones still to deliver going forward,” he said. “It’s important during 2010 that we learn as much as we can while we complete the fleet testing schedule for this year.”

Nearly 225 Tennessee Department of Transportation (TDOT) flexible fuel vehicles now are using E85. TDOT’s Region One Complex Office now offers the clean burning product.

According to the TDOT website, the group has been using biodiesel in heavy duty state vehicles since 2005 as part of a continued initiative to reduce petroleum use. As in an earlier post, TDOT missed their goal of reducing their petroleum use by 20 percent by Jan. 1 of this year.

“A major strategy for meeting TDOT’s petroleum reduction goals is increased availability and use of biofuels,” said Commissioner Gerald Nicely. “This is an important step in achieving a 20 percent reduction in fuel use and I’ve encouraged all TDOT employees who operate flex fuel and diesel vehicles to use the cleaner burning biofuels whenever they travel.”

“This is an exciting time for our region, as we continue to explore new ways to decrease our dependency on oil and reduce our carbon footprint,” Region One Director Steve Borden said as he pumped E85 fuel into a state vehicle. “We are using significantly less petroleum every time we fill up our gas tanks.”

There was no “on-the-fence” for the proponents and opponents who turned out for what could be the last public hearing on a proposed wind project off the coast of Cape Cod.

The Springfield (Mass.) News-Sun reports that the hearing before the federal Advisory Council on Historic Preservation could be the culmination of a nearly 10-year-old fight over the plan by Cape Wind Associates LLC to build 130 wind turbines in Nantucket Sound:

The historic panel was collecting public comment before making its recommendation to U.S. Secretary of the Interior Ken Salazar, who has said he will decide by April whether to approve Cape Wind. Salazar must take the council’s advice into consideration but is not required to follow to it, the board’s chairman, Mark Sadd, told the crowd.

The project would help combat climate change and reduce acid rain, which has been proved to damage historic buildings, said Eleftherios Pavlides, a professor of architecture at Roger Williams University in Rhode Island.

Now, let me see if I got this right. Opponents believe that an area littered by boat traffic and mansions, such as the Kennedy Compound (nice to see they’re looking out for the common guy who might have benefited from lower energy bills from the cheap energy from this wind project), would be made un-pristine by some windmills whirring in the ocean breeze? Tell you what, ban all the boats and raze all the mansions, return it to its original environment, then we’ll talk about whether the windmills are clean or not.

After announcing its 2011 Ford F-Series Super Duty truck will be compatible with B20 (see my post from Feb. 26, 2010), it looks like the auto maker now wants it to be the most powerful in its class.

This post from PickupTrucks.com says Ford is about ready to power-up its all-new 6.7-liter Power Stroke V-8 diesel engine to best GM’s 6.6-liter Duramax V-8 diesel in terms of power:

In February, Ford announced the 6.7-liter Power Stroke V-8 for its 2011 Ford F-Series Super Duty will pound out 390 horsepower and 735 pounds-feet of torque; earlier this month, GM announced that its 6.6-liter Duramax V-8 diesel for the 2011 Chevrolet Silverado and GMC Sierra HD pickups will make 397 hp and 765 pounds-feet of torque.

Bragging rights in the heavy-duty segment are critical because almost every truck is used for towing and hauling on a regular basis. More power can mean greater confidence in moving big loads.

The article goes on to say that Ford’s 6.7-liter V-8 could jump to 400 hp and over 775 pounds-feet of torque. The best news is that those who bought the lower-rated Ford could still get the jump in power through a reflash of the software in the engine control unit.

Although it has a broad base of support across the country (unlike a certain health care measure that 60+ percent of Americans don’t favor), renewal of the federal $1-a-gallon biodiesel tax incentive seems that it will have to wait at least a month at the earliest before Congress will get to it.

This article from Reuters says with Congressional recesses coming up, the measure is unlikely to see any action until at least the middle of next month:

While the House and Senate have passed bills to renew the credit for 2010, they must agree on a common text to send to the president. “Neither the House or Senate has signaled any particulars on how they will do that,” said Michael Frohlich of the National Biodiesel Board, a trade group.

A resolution is unlikely before mid-April, said two biofuels officials. Congress soon will recess until April 13, they noted, and a final vote on the credit could be delayed until late April or later, depending on the pace of House-Senate negotiations.

So, instead of moving quickly on a bill that is projected to save 23,000 jobs that have been or are being lost by the biodiesel industry because of the loss of the credit, we have lawmakers in D.C. staying up late on a Sunday night to pass a bill (healthcare) that has only about one-third of the country’s support. Maybe they should have nick-named the measure the “Biodiesel Health Bill.”

U.S. Senator Chuck Schumer (NY-D) visited New York’s only commercial biodiesel producer last month to assure them of his support for the federal tax incentive for biodiesel.

“The dollar tax incentive assures us that we are competitive with regular diesel fuel right now. The federal government subsidizes the petroleum industry as well, so if we lose our incentive, we lose our competitive advantage over the regular fuel,” said Schumer during a stop at Northern Biodiesel on February 19.

However, while Sen. Schumer supports biodiesel, he opposes corn ethanol. Informa Economics reports that Schumer sent a letter to a constituent outlining his concerns, saying that “corn ethanol provides no environmental, economic, or security benefit over petroleum, and it raises serious ethical concerns about our obligations towards our neighbors.” At the same time, Schumer does support the development of cellulosic ethanol, saying production does “have the potential to protect the environment and reduce America’s dependence on foreign oil, without putting strains on American agriculture or other countries’ food supplies.”

Schumer’s letter prompted officials with Western New York Energy (WNYE) to write him a letter and set the record on corn ethanol straight.

“Rather than pointing out the inconsistency in your ethanol and biodiesel positions, we wanted to take this opportunity to provide you with more current information about America’s ethanol industry in the hopes that you will revisit your position,” wrote plant owners John and Michael Sawyer. They are planning to contact the senator’s office to set up a tour of their 55 million gallon per year plant located in Medina, NY which was the first ethanol plant built in the northeast United States and is a member of the Renewable Fuels Association.

Kinder Morgan, one of the nation’s pioneers in biofuels by pipeline development, has signed a 30-year deal with Carteret, New Jersey to turn 14 acres of brownfields into a biodiesel storage and processing facility.

This article from NJToday.net says the project will have connections to some regional pipelines:

Adjacent to Kinder Morgan’s existing facilities, the project will make use of property formerly used for truck maintenance, calling for additional blending and storage units, and allowing for 1,035,000 million gallons of biodiesel storage and processing. Ultimately the project will provide new connections to SUN, Colonial, and Buckeye regional pipelines.

“The numbers are certainly impressive but the foremost benefit will be to our homeowners and workforce,” Reiman stated. “We’ve put a strong emphasis on unionized labor in this agreement as with all of our capital improvement projects, and are pleased to announce that 100% of the non-specialized construction labor involved with this project will come from New Jersey unions. This is in addition to the 250 private-sector jobs that will be created upon the facility’s completion.”

Got to love that. Clean up a brownfield, provide green energy AND jobs to an economy that really needs a boost right now. That’s what you call a REAL stimulus package.

Today is World Water Day, and the National Biodiesel Board is tapping into the environmental day of recognition to illustrate just how water-thrifty the renewable fuel really is.

In an NBB piece, the group’s sustainability folks point out that fresh water is helped along by biodiesel’s green nature:

By switching to renewable fuels, like biodiesel, we help ensure future access to energy and future access to clean, fresh water. For every unit of energy put into producing biodiesel, 4.5 units of renewable solar energy are stored in the usable form of liquid fuel. Biodiesel is the best way to store energy from the sun in a dense, liquid fuel for transportation uses, but it can also be used as a renewable fuel for stationary uses such as the Thames Water Desalination Plant in London. This plant will use biodiesel from recycled fat and oil from London restaurants and households to provide water for one million people.

We must also protect our water resources by minimizing pollution. Biodiesel production reduces wastewater by 78 percent and reduces hazardous waste production by 96 percent compared to producing petroleum diesel. These numbers are based on the entire lifecycle of the fuel. The conversion of fats and oil to biodiesel uses very little water, and can be done consuming no water at all, if necessary. The year 2008 was a record year for biodiesel production in the US. Even during that record production, the entire US industry used less water than a handful of golf courses use to water their lawn. In the context of our societal uses of water and the benefit it brings, biodiesel production represents a very meager use of water.

And since it is nontoxic and biodegradable, biodiesel isn’t the threat to the environment that petroleum is. Seriously, when was the last time you saw a picture of a duck or an otter struggling through a biodiesel slick in some previously pristine bay?