Domestic Fuel

If the biodiesel makers ever get the $1-a-gallon federal tax credit back, the industry could have plenty of feedstock for the green fuel come fall.

This Bloomberg article posted in the Wichita (KS) Eagle says U.S. farmers are expected to plant their largest soybean crop this year:

Soybean plantings will rise 2.1 percent to 79.111 million acres from a record 77.451 million last year, Allendale said today in its 21st annual survey of farmers. Production will total 3.338 billion bushels, down from 3.359 billion last year, the biggest crop ever, based on a projected national yield of 42.7 bushels an acre.

With a little luck, those biodiesel brewers will be able to take advantage of the big crop (despite it being a bit lower than last year) with lower commodity prices.

Another biofuel that could end up benefiting from farmers’ efforts would be ethanol. Bloomberg is expecting that green fuel’s main feedstock, corn, to have the second-biggest area planted since World War II and a projected record yield of 13.243 billion bushels.

Wind energy has faced some opposition, mostly against people who are afraid their oceanfront views will be obscured by windmills seven miles offshore, but now it has a pretty tough opponent in the U.S. military.

This article from BiofuelsWatch.com says the military is raising concerns about wind farms disrupting military radar arrays:

The primary military concern about wind farm development stems from the fact that in order to maintain adequate efficiency wind farms must operate at least 80 to 100 feed in the air, with the higher the placement the more efficient the turbines can operate due to the “cleaner” wind streams. RADAR detection, however, generally begins at roughly 50 feet, thus any wind turbines present would potentially block any RADAR signals by bouncing back signal waves with their blades and create an effective “dead zone” on the opposite side of the turbine from the RADAR emitter.

Experts say the issue could, at best, delay some projects or, at worst, cancel individual wind turbines … and even bring about a whole new set of regulations.

While parts of the renewable energy sector have had some tough times lately … biodiesel with the loss of the federal tax credit, ethanol with the food vs. fuel fight, the economic downturn and the tightening of the credit markets … it seems green energy has actually benefitted from the recession. Well, at least in the area of new ideas.

The Financial Times has details:

Not only did the funding model for much of the US renewable energy industry put the sector within a whisker of being dragged down in Wall Street’s wake, but the general economic climate also threatened to put numerous projects on hold.

… patents in fuel cells and hybrid/electric vehicles were each up over twenty percent over 2008 with solar patents up sixty percent and biomass/biofuel energy patents up two hundred sixty percent. Fuel Cells, wind, and biomass/biofuel energy patents were also at all time highs in 2009. In contrast, hydroelectric and tidal patents decreased in 2009 while geothermal patents were up only one patent over the year prior.

The article goes on to point out that while Silicon Valley is usually known for its venture capitalists going green, the real growth in renewable energy is being fueled by what’s happening in Detroit, with fuel cells dominating the conversation … four times the number of patents as closest competition wind and solar … and Honda, GM and Toyota are speaking the loudest.

When it’s finished, it will produce nearly twice as much biodiesel as the entire country of Canada produces now and will supply our friends to the north with one-fourth of their increasing national demand by 2012.

The Edmonton Journal reports that the Bio-Street plant in Vegreville will begin construction later this year … just in time for Canada’s 2 percent biodiesel mandate to kick in in two years:

“With these federal standards, that means there will be a demand for one billion litres. And some provinces are going further, with B.C. requiring five per cent biodiesel by 2012,” vice-president Angela Reid told the Resource Industry Suppliers Association on Thursday.

BioStreet has 34 hectares of land, and after 18 months of waiting expects provincial and federal regulatory approvals within weeks.

Groundbreaking for the plant will begin sometime after this summer.

Now that Underwriters Laboratory has approved the use of certain pump dispenser models for mid-level ethanol, the door is open for manufacturers to begin marketing them more aggressively.

This week, Gilbarco Veeder-Root announced the release of a new dispenser in the Encore® S fuel dispenser product line that offers four fuel products at the same fueling position – regular unleaded, premium unleaded, a mid-level ethanol blend and E85.

Underwriters Laboratories (UL) and the National Conference on Weights and Measures have approved 19 other Gilbarco Encore S and Encore 300 flexible fuel dispenser models for use with Ethanol blends up to E25, giving retailers maximum choice and flexibility.

“Retailers are requesting products that provide flexibility in the fuel choices they can offer their customers. Increasing consumer demand for ethanol based fuels, combined with incentive programs to encourage the development of an infrastructure to deliver these fuels, are helping to create demand for a range of products,“ said Chad Johnson, product manager at Gilbarco Veeder-Root and a board member for Growth Energy. “The Encore series flexible fuel dispensers help retailers meet demand for higher Ethanol fuel blends and offer the opportunity to capture blender tax incentives as well.”

Find out more here.

Since it was the biggest gathering of the year for corn and soybean growers, it’s only natural that Commodity Classic was also a good place to talk about the state of the ethanol and biodiesel industries, especially when you consider the two grains are still the biggest feedstocks for the biofuels.

In this edition, we listen in on the conversation about ethanol and biodiesel at Commodity Classic with Secretary of Agriculture Tom Vilsack; Brian Jennings, the Executive Director of the American Coalition for Ethanol; Robert White with the Renewable Fuels Association; National Corn Growers Association president Darrin Ihnen; and American Soybean Association president Rob Joslin.

They talk about the E15 blend wall, the state of biofuels infrastructure, and the prospect of getting the federal $1-a-gallon biodiesel tax incentive passed through Congress.

It’s an interesting conversation, and you can hear it below.

You can also subscribe to the DomesticFuel Cast here.

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

Farmers and small business have found a crop to make them more money – clean energy. This according to a recent report from the Environmental Lay & Policy Center (ELPC) which just released “Farm Energy Success Stories” that demonstrate how a farm or small rural business adopted clean energy technologies and cut energy costs. Examples cited in the report include a Montana brewery that runs on solar power and an Illinois dairy that generates electricity from manure. Much of the monies that made these projects possible came from the Farm Bill’s Rural Energy for America Program (REAP).

“With the help of farmers, ranchers and rural small businesses, America can make great strides toward solving its energy problems.” said Andy Olsen, Policy Advocate for ELPC. “REAP is creating economic development, energy independence and a cleaner environment one farm at a time.”

Since 2003, REAP has funded over 3,000 clean energy projects, in 50 states that cover the clean energy spectrum – wind, solar, geothermal, biomass and energy efficiency. The United States Department of Agriculture (USDA), which oversees the program receives applications for more than three times the amount of funds available, and in February, President Obama raised the funding levels to the highest amount ever to $109 million.

ELPC has been a public supporter of the program since its inception and notes that the program,”leverages billions in private investment, reduces pollution, builds interest and awareness about the benefits of clean energy.” Many legislators support the program as well and Represenative Colin Peterson (D-MN) commented, “This is the kind of common sense program that will help transform rural America into an energy resource for the entire nation.”

You can download Farm Energy Success Stories here.

ConocoPhillips and Penn State have joined forces to award up to $300,000 to further the development of innovative ideas and solutions in energy. This award is to recognize new ideas and original, actionable solutions that can help improve the way the nation develops and uses energy.

Three areas will be judged:
1. Developing new energy sources, including new ways to develop alternative energy.
2. Improving energy efficiency, such as new methods to significantly reduce the amount of energy consumed in the United States.
3. Combating climate change, including solutions that reduce greenhouse gas emissions.

Entries for the award will be accepted through May 21. Finalists will be annouced in August and will be given $25,000 to further their ideas on the project. The winner will be announced in October and will be awarded $100,000, first runner up will receive an additional $50,000 and the second runner up will receive $25,000. The contest is for U.S. citizens who are 18 years of age and older. For more information or to submit an entrie for the contest, click here.

A new biofuel mix will be making its debut in the American Le Mans Series this weekend – isobutanol and ethanol.

The “Global Leader of Green Racing” announced earlier this week that Dyson Racing, with cooperation from partners BP and Mazda, will campaign its Mazda-powered Lola B09/86 LMP2 coupe on isobutanol for the full 2010 season. Chris Dyson, Guy Smith and Andy Meyrick will drive Dyson Racing’s Lola-Mazda coupe with isobutanol power at the season-opening 58th Mobil 1 Twelve Hours of Sebring presented by Fresh from Florida on Saturday, March 20.

The isobutanol fuel component is of particular interest to BP and its development partner DuPont who, through their Butamax™ Advanced Biofuels joint venture, are developing commercial facilities to manufacture isobutanol for mainstream use.

Aventine Renewable Energy officials expressed optimism about the future for ethanol this week as they emerged triumphant from bankruptcy.

The Pekin, Illinois-based ethanol producer announced its successful emergence from Chapter 11 restructuring on March 15, naming Thomas Manuel as the company’s new Chief Executive Officer and Chief Operating Officer.

“Emerging from bankruptcy with good liquidity, modest debt and lower overhead costs, Aventine is well positioned to be one of the low cost providers of ethanol on a national basis,” said Manuel. “I am very optimistic about the ethanol industry and our success going forward. We have put in place a strong leadership team with decades of experience.”

In February 2009, Aventine and its subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware due to tough economic conditions for the ethanol industry had with soaring corn prices and lower petroleum costs.

“The ethanol industry has sound long-term prospects, and we anticipate a strong rebound as the biofuels mandate continues to increase,” Manuel said. “Aventine will emerge as a much stronger business with all the key pieces: a restructured balance sheet, excellent liquidity, and a committed group of employees led by a new senior management team.”

Aventine’s strategy is to be a low-cost, focused ethanol producer. The company also plans to resume as soon as possible the construction of its two partially completed 108 million gallon bio-refineries in Aurora, Neb. and Mt. Vernon, Ind. Both construction projects were within months of completion when work was suspended prior to Aventine’s filing for bankruptcy protection.

According to a report out today from the Renewable Fuels Association (RFA), failure to extend the Volumetric Ethanol Excise Tax Credit (VEETC) would reduce U.S. ethanol production capacity by 38% and eliminate 112,000 jobs in rural communities already hemorrhaging employment opportunities.

“Ethanol has provided an unparalleled, value-added opportunity for agriculture and rural America,” said RFA President Bob Dinneen. “Supporting nearly 400,000 jobs, America’s ethanol industry is building a strong foundation for a robust renewable fuels industry in this country. Failure to provide the kind of assurance investors require to continue building out this industry by extending the tax incentives would be shortsighted, relegating future generations to a reliance on both foreign oil and foreign renewable fuels.”

The RFA is advocating for a long term extension of VEETC, the Small Producers Tax Credit, the Cellulosic Ethanol Tax Credit, and the offsetting tariff on imports. According to the study “Importance of the VEETC to the U.S. Economy and the Ethanol industry,” failing to extend the tax incentive would idle an additional 4.56 billion gallons of production, based upon the 2010 expectation of 12 billion gallons of domestic ethanol production.

Listen to or download a special Ethanol Report interview with Bob Dinneen on the study here:

Podcast: Play in new window | Download (3.7MB)

A Hawaiian biofuels firm recently announced an agreement to build a commercial scale biorefinery facility in Tennessee for the production of renewable jet or diesel fuel out of wood.

Under the agreement between ClearFuels Technology of Aiea, Hawaii and Hughes Hardwood International of Collinwood, Tennessee, 1000 tons of wood product per day will be converted into approximately 16 million gallons of synthetic jet or diesel fuel and 4 million gallons of naphtha per year, as well as approximately 8 megawatts of excess renewable power. The project is currently expected to be operational by early 2014.

ClearFuels has begun project development of multiple commercial scale biomass-energy facilities in the southeastern United States, Hawaii and internationally to be located at sugar mills, wood mills and other biomass processing facilities.

The Renewable Fuels Association (RFA) is set to release a new report today warning about the economic ramifications of allowing the tax incentive for ethanol blending to expire at the end of the year.

In a preview obtained by Domestic Fuel, allowing the Volumetric Ethanol Excise Tax Credit (VEETC) to expire would cost the country more than 100,000 jobs and cut U.S. domestic production by more than a third. According to RFA president Bob Dinneen, the report shows that failure to extend the tax incentives would result in “relegating future generations to a reliance on both foreign oil and foreign renewable fuels.”

The report is scheduled to be released by RFA later this morning.

Over 100 fleet managers, city, state and county government representatives, fuel producers and distributors and fuel retailers gathered together Wednesday in Dothan, Alabama to become informed leaders for the state’s emerging biofuels marketplace.

“We are gathered here today to bring you more awareness of the five alternative fuels of propane, compressed natural gas, E85, biodiesel and electric vehicles,” said Mark Bentley of Alabama Clean Fuels Coalition.

Speakers during the event included Dothan Mayor Mike Schmitz; Kathy Hornsby of Alabama Department of Economic and Community Affairs; Larry Fillmer, Executive Director of Auburn’s Natural Resources Management & Development Institute; Michelle Kautz, Market Development Manager from Growth Energy speaking on E85 and ethanol blender pumps, and Rob Dascal of Renewable Energy Group (REG) speaking on biodiesel. REG currently produces over 25% of America’s biodiesel.

Retailing biofuels in Alabama was discussed by Hayden Powers, Municipal Sales Manager for the McPherson Oil Company and the municipal use of alternative fuels was explored by David Lindon, Director of Hoover Fleet Management. The City of Hoover has been nationally & internationally recognized for its use of alternative fuels. Over 85% of Hoover’s vehicles are powered by alternative fuels. Clean Energy (the Boone Pickens Company) was represented by Mason Ecker. Clean Energy is the largest provider of Natural Gas in North America with a broad customer base in the refuse, transit, port, shuttle, taxi, regional trucking, airport and municipal fleet markets.

Other topics included propane, electric vehicles and funding opportunities for alternative fuels.

A one-day conference is scheduled to provide information to Pennsylvania biodiesel producers on what should be expected when the state’s B2 mandate goes into effect.

Biodiesel Magazine reports the Pennsylvania Department of Agriculture and the National Biodiesel Board are holding the April 20 event, called the Pennsylvania Biofuel Development Conference:

The mandate is based on trigger points, so when instate production—not installed capacity but actual production volumes—reaches 100 MMgy, the Pennsylvania biodiesel standard will move from B2 to B5. Keystone Biofuels’ Ben Wootten, also president of the Pennsylvania Biodiesel Producers Group, said installed biodiesel production capacity in Pennsylvania is currently 114 MMgy.

The B2 mandate is for on-road diesel fuel only, but Wootten, who just accepted the position of regulatory chair for the National Biodiesel Board, said Bioheat legislation was just recently proposed, Senate Bill 1282, which would seek a B5 mandate for all heating oil sold in Pennsylvania beginning May 2011.

The event will feature sessions focusing on statewide biodiesel distribution systems, best practices to ensure fuel quality, testing methods and more. To register and for more information, contact Michael Radar at (717) 787-9089.