Domestic Fuel

Everyone needs an excuse to go to Italy and now you have one – Solarexpo. Solarexpo in an international conference and expo on renewable energy and distributed generation. The event will be held on May 5-7, 2010 in Italy and as part of the event, is launching the R4R – Research for Renewables event.

R4R is a “research consortium” of sorts representing Italy’s entire range of renewable energy technologies. Organizations involved in research, technology developments, university spinoffs and innovative startups have the opportunity to be involved. The concept has been developed and managed in partnership with Galileia, a spinoff from the engineering faculty of the University of Padua that specializes in the energy sector.

“With the R4R project, Solarexpo is building on its innovative approach and continuing to create new spaces in which the vast worlds of renewable energy can come together. R4R is our way of engaging with parts of the renewables sector that would only be marginally interested in a traditional exhibition event: the world of research and new companies in the renewable energy field,” said Luca Zigale, scientific director of Solarexpo. “This is an environment that is evolving rapidly and is full of new talents, ideas and projects, but isn’t very visible for more established companies and public sector decision makers.”

Another interesting twist of the R4R is that is will have a dedicated hall in Solarexpo and 20 of the most promising startup companies will be selected to exhibit at no charge. In conjunction with the expo, a series of networking events, informational sessions and workshops will take place around two themes: “Research Day” and “Green Financing Day”.

But what may be the coolest thing about 4R4 is its support of young, innovative companies that have great ideas but not enough funding. This event will give these companies that audience they need to attract investments and bring these cutting-edge technologies to market.

You can learn more about the conference by clicking here.

Ethanol is taking a bite out of crude oil, this according to a recent OPEC report. An article published in The National, says that rising ethanol use in the United States is dampening demand for petroleum based fuels and this will be felt even more during the next few months.

Next week, OPEC ministers are getting ready to meet in Vienna, and last month OPEC participated in a preliminary report that estimates that $500 billion a year could be spent yer year on fossil-fuel based subsidies. In its latest monthly oil market report issued two days ago, the organization’s secretariat drew attention to an eight-fold increase in U.S. ethanol consumption since 2000. This use should grow as the E15 waiver, which allows consumers the choice to use up to 15 percent ethanol in conventional cars is expected to pass by late summer.

“With the continued rise in US [petrol] stocks and surging ethanol volumes in the [petrol] pool, as well as ample idle refinery capacity, any seasonal upwards movement in the [petrol] market is likely to be limited,” the OPEC report said as quoted by The National.

OPEC also noted in its report that its projected demand for crude oil continues to be less than production leading to an oversupply situation that amounts to around 1.5 million barrels per day (bpd). Typically, stocks begin to dwindle after the first of the year but this year, stocks actually increased. Regardless of the current surplus, OPEC raised its prediction of global oil demand by 100,000 bpd from last month’s report. On Wednesday, a barrel of oil sold just shy of $80.

Each day, cellulosic gets closer to becoming commercially viable in the marketplace. Two weeks ago, a major hurdle was overcome with the announcement that Novozymes’ enzyme Cellic® CTec2, used for cellulosic ethanol production with feedstocks such as corn stover and corn cobs, is now 50 cents per gallon. I had the opportunity to learn more about this breakthrough when I sat down with Thomas Videbaek, Executive President of Novozymes BioBusiness, at Commodity Classic.

Videbaek explained that Cellic is the first commercial product for cellulosic ethanol. With Cellic, you’ll be able to produce cellulosic ethanol using an enzyme cost of about 50 cents per gallon. “With this, we think that the enzyme part of producing cellulosic ethanol has been cracked,” said Videbaek. “Now we need to get out and starting producing it and we’re really, really excited about that.”

Novozymes is a partner with POET’s Project Liberty which will produce ethanol from corn cobs. I asked Videbaek for an update and he believes that with the enzyme breakthrough they will be able to produce cellulosic ethanol for around $2.35 per gallon. However, the expectation is that once Project Liberty is up and running, the cost will be reduced to around $1.90 per gallon. This will be monumental in that it will break the $2.00 per gallon barrier challenge of producing cellulosic ethanol.

This was a massive project for Novozymes who has been working on it for more than five years. “It’s the biggest project we’ve ever carried out,” said Videbaek. There were more than 150 people working on it in the past year alone.

In addition to corn stover and cobs as a feedstock, they are also working with wheat in Europe and have an operational pilot plant in Denmark. In addition, they are working with Brazilian ethanol producers to develop an enzyme to break down the bagasse.

You can learn more about Cellic by listening to my full interview with Thomas below.

Podcast: Play in new window | Download (2.3MB)

“Some people believe that corn ethanol is an old technology. We believe just the opposite,” said John Caupert, the Director for the National Corn-to-Ethanol Research Center (NCERC) during an interview with me at Commodity Classic. “We feel the corn ethanol industry is still in its infancy and through technological advancements, there’s much more to learn and prove in corn ethanol production.”

In the last two-to-three years, Caupert noted that there has been a major emphasis on technological improvements such as corn fractionation, and aneorbic digestion, things that would incorporate capital upgrades or capital investments in the ethanol plant. In terms of corn ethanol production, a lot of focus has been dedicated to advancements in fermentation ingredients such as enzymes and various strains of yeast.

The NCERC has also played a role in the debate over indirect land use. Caupert explained that they have done a lot of research that focuses on the value of how co-products improve the greenhouse gas footprint of fuel ethanol production.

“I think more often than not, we forget about the fact a corn ethanol plant in addition to producing fuel ethanol, also produces this high value livestock feed called distillers grains,” said Caupert.

They will continue to look at this data and make recommendation about how the co-products should add value to corn ethanol in the indirect land use arena.

Listen below to hear my entire interview with John.

Podcast: Play in new window | Download (2.3MB)

Growth Energy’s Market Development team is now offering funding to retailers to assist in ethanol blender pump infrastructure. Grants of $2,500 and $5,000 are now available on a first come, first serve basis to vendors who wish to install new or convert existing equipment for ethanol fueling. These grants are in addition to any Federal or state grants or incentives a retailer may be eligible.

“There are over 8 million flexible fuel vehicles across the country with more being produced in each model year. Unfortunately, of the 161,000 gasoline stations in the U.S. only 2,200 offer E85 where FFVs may fuel up with a high level blend of domestic, renewable fuel such at 85% ethanol……….another 132 offer mid-level blends,” said Growth Energy Market Development VP, Phil Lampert. “Growth Energy is pleased to offer this assistance to retailers across the nation and we hope that they avail themselves of this unique opportunity.”

Growth Energy can also offer pump imaging and technical assistance along with the grants. You can find the two page outline of the Infrastructure Development Program by clicking here. To apply for the funding, click here.

The world’s largest ethanol producer plans to decrease water use in the production of ethanol by 22 percent over the next five years, which would result in a savings of one billion gallons of water per year.

In a presentation to employees today, POET CEO Jeff Broin said the company is committed to producing ethanol as sustainably as possible and minimizing its impact on natural resources.

Water reduction is the first goal of Ingreenuity, POET’s new initiative to improve the environmental performance of ethanol. The reductions will come primarily through installing a proprietary process developed by POET engineers that recycles cooling water rather than discharging it. The process has recently been installed in three POET Biorefining locations which now average 2 to 2.5 gallons of water per gallon of ethanol.

To kick off the initiative, Broin announced that the POET Foundation has committed more than $420,000 to the non-profit Global Health Ministries (GHM) over the same five-year period as POET’s water reduction goal. A portion of the funds will help GHM repair, construct and maintain 90 wells in Nigeria that that will give more than 300,000 people access to pure water.

The CEO of one of the world’s biggest petroleum companies says his company will soon produce more natural gas than oil and is investing more than ever in biofuels.

And this article from the Wall Street Journal says that Peter Voser of Royal Dutch Shell says he expects in the next 40 years, 40 percent of the world’s cars will be electric:

Mr. Voser sat down with The Wall Street Journal’s Alan Murray and Kimberley Strassel to talk about the future of climate-change legislation, the company’s push beyond oil, the prospects for electric vehicles and more…

MR. VOSER: We are focusing a lot on biofuels at this stage.
Read the rest of this post…

They’re back up and running at Imperium Renewables’ Grays Harbor, Washington biodiesel plant.

This company press release says Imperium re-opened the facility after a glycerin tank rupture idled operations last December:

“We are thrilled to be producing again,” said John Plaza, founder and CEO of Imperium Renewables. “We have replaced the damaged equipment and re-designed the glycerin neutralization system to ensure such a rupture won’t happen again.”

The first of more than 40 rail cars containing millions of gallons of vegetable oil from canola grown in the Northwest arrived yesterday at the Imperium Grays Harbor facility. Imperium will convert the oil into biodiesel, which has been shown to reduce carbon emissions by 78 percent compared to petroleum fuel. The fuel will be distributed and consumed within the Pacific Northwest as well, embodying the preferred approach recently recommended by President Obama’s Biofuels Interagency Working Group.

The re-opening comes just in time as nearby British Columbia had a new biodiesel mandate go into effect at the beginning of this year, while in the U.S., biodiesel prospects have brightened in the wake of the U.S. Senate’s passage of the $1-a-gallon federal tax incentive and the EPA’s issuance of the new Renewable Fuel Standard, better known as RFS-2, which mandates the consumption of 1.15 billion gallons of biodiesel nationally in this year.

As expected, the federal $1-a-gallon biodiesel tax incentive has cleared the U.S. Senate on the back of the current jobs bill.

The 62-36 vote now moves the measure into a reconciliation phase with the House’s version of the bill.

I caught up with Michael Frohlich, the director of federal communications for the National Biodiesel Board’s office in Washington, D.C. earlier this evening. He says final passage of this important measure can’t come soon enough.

“It’s an immediate need for the industry at this point,” says Frohlich, pointing out that biodiesel has been without the credit since the beginning of the year. Fortunately, if the bill does pass and is signed into law, it will be retroactive back to January 1, 2010.

But Frohlich is worried that biodiesel will be back in the same boat next December 31st as it was last December 31st, because this version of the tax credit expires at the end of this year.

“Although it’s slightly a bit of a hollow victory in the sense that we’ll have to go back to the drawing table once this gets enacted to make sure that it continues to get enacted again next year, it is traditional that [Congress does] pass these extenders, and we haven’t seen any objection from any senator or House member.”

He says last year, the Senate got so caught up in the health care debate, lawmakers worked on Christmas Eve … and that never happens … and the incentive got left by the wayside. Frohlich doesn’t expect that the biodiesel credit will get left behind again, but it has reinforced that the NBB’s number one legislative priority is to get a multi-year tax credit into effect.

And hopefully, there won’t be a health care debate that stops all business.

You can hear all of my conversation with Michael below.

Podcast: Play in new window | Download (4.0MB)

It may be a little late in the day for this reminder but you can still go online to register for a spot in the upcoming Process Optimization Seminar being hosted by Phibro Ethanol Performance Group, along with Fremont, Fermentis and Novozymes.

The Seminar is targeted to plant managers, operations managers, technical managers, lab managers and general managers. This interactive seminar is focused on helping ethanol plants increase their efficiency and profitability through learning about new technologies available for the fermentation process. This two half-day seminar is being held in Indianapolis, Indiana on March 30-31 and the early registration deadline is March 10 (uh, that’s today!).

Click here to get registered.

Domestic Fuel is happy to be the media partner for this event.

A group of engineers at the University of Wisconsin-Madison has been able to turn biomass into the chemical equivalent of jet fuel, and they’ve been able to do it using a process that actually takes advantage of biomass sugars’ bad habit of degrading.

This press release from the school says a simple process developed by James Dumesic, Steenbock Professor of Chemical and Biological Engineering at UW-Madison, postdoctoral researchers Jesse Bond and David Martin Alonso, and graduate students Dong Wang and Ryan West preserves about 95 percent of the energy from the original biomass, requires little hydrogen input, and captures carbon dioxide under high pressure for future use:

Much of the Dumesic group’s previous research of using cellulosic biomass for biofuels has focused on processes that convert abundant plant-based sugars into transportation fuels. However, in previously studied conversion methods, sugar molecules frequently degrade to form levulinic acid and formic acid — two products the previous methods couldn’t readily transform into high-energy liquid fuels.

In the presence of metal catalysts, the two acids react to form gamma-valerolactone, or GVL, which now is manufactured in small quantities as an herbal food and perfume additive. Using laboratory-scale equipment and stable, inexpensive catalysts, Dumesic’s group converts aqueous solutions of GVL into jet fuel. “It really is very simple,” says Bond, of the two-step catalytic process. “We can pull off these two catalytic stages, as well as the requisite separation steps, in series, with basic equipment. With very minimal processing, we can produce a pure stream of jet-fuel-range alkenes and a fairly pure stream of carbon dioxide.”

The researchers say the fuel produced is high-energy density, making it better suited for the aviation industry than more conventional ethanol. Now, the team is working on making the process cost-effective.

It looks like the $1-a-gallon federal biodiesel tax incentive could be close to renewal, as the jobs bill to which it was attached has cleared a key vote in the U.S. Senate.

The vote came Tuesday as eight Republicans sided with 58 Democrats to end debate on the $150 billion measure.

The cloture vote clears the way for final passage in the Senate. H.R. 4213, the American Workers, State and Business Relief Act includes retroactive extension of the biodiesel tax credit, and it will have to be reconciled with the US House’s version.

The American Soybean Association is urging lawmakers to work together to get a final bill done:

“Expiration of the biodiesel tax incentive has essentially caused the production and use of biodiesel in the U.S. to cease and has placed thousands of jobs currently supported by the domestic biodiesel industry in immediate jeopardy,” said ASA President Rob Joslin, a soybean producer from Sidney, Ohio. “Companies have already started laying-off employees, and this situation is certain to worsen the longer the tax incentive is allowed to lapse.”

An interesting note: I found out about this passage earlier on Tuesday when our friend Jessica Robinson from the National Biodiesel Board (@Biodiesel_Media) tweeted, or more accurately, re-tweeted @agripulse‘s tweet to my Twitter account (@jdavisreporter) when the vote happened. Didn’t take long for at story to travel around the social media! No wonder Chuck and Cindy (@AgriBlogger and @FarmPodcaster) have been such big advocates!

Getting energy from the land and practicing good conservation are not mutually exclusive. A federal ag deartment researcher says we can have both through using biomass.

USDA researcher Doug Karlen, who works at the Agricultural Research Service’s National Soil Tilth Lab in Ames, Iowa, told attendees of the recent USDA Outlook Forum that conservation and energy from biomass can be compatible if three things are considered.

“If we utilize multiple feedstock options, multiple conversion platforms and recognize that’s there’s no single solution.”

Karlen also told the group that you have to consider how land conditions vary. In addition, biomass cannot always be seen as just a waste waiting to be made useful. He points out that the trade-off for using biomass from fields for bioenergy is that there is no residue left over to renew the soil with nutrients, as well as losing the habitat for wildlife those crop leftovers provided. Karlen says that’s why it is so important to have a diversity of biomass products within a certain area.

S4 Energy Solutions has recently announced plans to develop a plasma gasification facility at Waste Management’s Columbia Ridge Landfill in Arlington, Oregon. The facility will covert municipal solid waste into clean fuels and renewable energy. Construction is beginning in early summer and the plant will be online by the end of this year. During construction, 28 people will be employed with 16 being permanent once the facility is operational. S4 is a partnership between Waste Management and InEnTec, a deal that was solidified in May of 2009.

“Our goal is to extract as much value as possible from waste and this project will help us recover valuable resources to generate clean fuels, renewable energy and other beneficial products,” said Dean Kattler, area vice president for Waste Management Pacific Northwest. “This project strengthens our focus on renewable energy and new technologies that use waste as a resource. We are committed to growing our business in this region in innovative ways, bringing green jobs to communities where we already have operations and community relationships.”

Using S4′s PEM process, waste materials are prepared and fed into a phase gasification chamber that operates at nearly 1500 degrees Fahrenheit. Once this phase is complete, the waste materials flow into a second closed chamber where they are superheated using plasma, an electricity-conducting gas. Ultimately, the intense heat rearranges the molecular structure of the waste converting it into syngas. From here, the syngas can be converted into ethanol or diesel or into industrial products like hydrogen or methanol.

This site also features a landfill gas-to-energy (LFGTE) facility which captures methane gas created during decomposition and to use for electricity which powers 5,000 homes in Seattle. Sixty-seven windmills also generate 100 MW of electricity at the landfill and the power is sold to PacifiCorp.

Jeff Surma, president and chief executive officer of S4 Energy Solutions, concluded, “Plasma gasification has garnered a lot of attention recently, as we look for new ways to sustainably manage waste while recovering valuable resources. We believe the project will demonstrate commercial viability of the new S4 integrated system, so that we can implement this technology at many other locations for a wide variety of applications.”

Last September, the G-20 leaders announced during an event in Pittsburgh, that they are committed to phasing out controversial fossil-fuel based subsidies. According to the Global Subsidies Initiative, the G-20 leaders blame subsidies for encouraging wasteful consumption and undermining efforts to combat climate change. Referencing studies by the Organization for Economic Cooperation and Development (OECD) and the International Energy Agency (IEA), the G-20 said that “eliminating fossil fuel subsidies by 2020 would reduce greenhouse gas emissions in 2050 by ten percent.”

Last month, the preliminary report was released, “Analysis of the Scope of Energy Subsidies and Implementation of Phasing Out” written by researchers from the International Energy Association (IEA), World Bank, the Organization of Petroleum Exporting Countries (OPEC) and the Organisation for Economic Co-operation and Development (OECD). The report has found that the world could spend in excess of $500 billion each year to subsidize fossil fuels.

In response to this early draft, Tom Buis, with Growth Energy, an organization that represents the US ethanol industry said, “This study confirms what millions of Americans have known all along. Our addiction to oil has a devastating impact on our nation’s economy and energy security, as well as that of nations around the world. By increasing the production of domestic, renewable ethanol, we will not only enhance U.S. national security and green our environment but dramatically reduce the transfer of wealth that occurs today, keeping more money and jobs here at home at a time when it is needed most.”

Buis concluded, “Further, by learning many of the agricultural innovations that the U.S. uses today for farming and ethanol production, developing nations can benefit from both food and fuel production, helping them to become more energy independent and grow their economies.”