Domestic Fuel

One biodiesel standard is under review, while another one has been revised.

This post on Truckinginfo.com says ASTM International is considering a cold weather biodiesel standard:

Through the ballot, the group will decide if changes need to be made within the specification, D6751. If changes are needed, the group will determine whether they should apply to all biodiesel, or whether the changes should apply to a new separate grade of biodiesel. According to the NBB, the new grade would be intended for use in extremely cold weather.

The ASTM Filter Clogging Work Group and the ASTM Biodiesel Task Force will decide the exact form of the ballot and its limits. The results will likely be presented at the June ASTM meeting.

Meanwhile, The American Society of Agricultural and Biological Engineers (ASABE) has revised its biodiesel fuel testing standard. This ASABE press release posted on ThomasNet News says ASAE EP552.1, Reporting of Fuel Properties when Testing Diesel Engines with Alternative Fuels Derived from Plant Oils and Animal Fats, will cover the reporting of testing of any alternative fuels derived from plant oils and their blends with petroleum diesel:

The original document was developed in the 1990s. Since that time, with the rapid growth of the biodiesel industry, the procedures and practices in reporting the testing of such alternative fuels have evolved considerably. The revised document reflects current practices and international standards, with input obtained from experts in industry, academia, and public service.

You can read more about the ASABE standards here.

As if to borrow a line from Monty Python, the Iowa biodiesel mandate is “not dead yet!”

The 5 percent biodiesel blend for every gallon of diesel sold in the state, although declared dead by many in the media (including yours truly), seems to be marching on. The Omaha World-Herald reports that the B5 legislation cleared the state Senate last year and still has a shot at clearing the House this year:

The fight seems destined to continue, according to Craig Cronbaugh, director of information for the Iowa Legislative Services Bureau, even though a lot of other proposals will be set aside Friday by the legislative “funnel.” Any bill not out of committee by Friday will no longer be considered, Cronbaugh said.

“Ways and Means is exempt from the funnel,” Cronbaugh said. “So if it passes that committee, it could still make the full House floor” for a vote before the Legislature adjourns.

As you might remember from my post earlier this week, I had pointed out that while the bill died in the House Environmental Protection Committee, it still has a shot in the House Ways and Means Committee.

The world’s largest soybean processing plant will be using a a process from Verenium that will increase soybean oil production.

This company press release says Verenium’s Purifine(R) PLC enzymatic degumming process will be used at the Molinos Rio de la Plata’s San Lorenzo plant in Argentina … Argentina’s leading soybean and sunflower seed processor:

“Molinos’ ability to adopt new innovative technologies is what makes them a global leader in the edible oil market,” said Janet Roemer, Verenium’s Executive Vice President, Specialty Enzymes Business. “Verenium is pleased to be able to work with Molinos to further enhance their operating efficiency through the use of Purifine PLC, which allows for the simultaneous increasing of oil yields and improving the efficacy of meal production without requiring major changes to the existing plant layout.”

“Through Purifine PLC’s innovative enzymatic degumming process, we have seen a significant increase in oil yields and processing margins enabling our facility to more fully reach its potential,” said Luis Palacios, Molinos’ Industrial Manager. “The ability to squeeze extra yield from the same plant without increased chemical usage is critical to our philosophy of minimizing the overall environmental impact of our processes.”

The Molinos San Lorenzo facility is known for its state of the art technologies that maximize oil and meal yields from soybeans.

Although the California Air Resources Board (CARB), appears to be anti-corn-based ethanol (the EPA has just determined that corn ethanol has a greenhouse emission reduction value of 21 percent as compared to conventional gasoline) they have just given support to another alternative fuel – propane. ROUSH has just announced that CARB has granted certification approval for their propane-powered Ford F-250 and F-350 pickups. Now that the fuel meets the strict emission standards of the sate of California, the vehicle will be able to be sold and operated in all 50 states.

Todd Mouw, director of sales & marketing for ROUSH Propane Vehicles noted, “We have made a significant investment in our liquid-propane injection technology, and we look forward to helping fleet operators across the country reduce their carbon footprint and operating costs with our propane-powered vehicles. We have more than two hundred 2010 Ford F-250s and F-350s in our inventory, so we have plenty of trucks available to meet customer demand.”

With CARB’s approval, ROUSH is now allowed to sell their 2010 Ford F-250 and F-350 models with the 5.4L V8 engine. The company is also working towards receving the same certification for the upcoming 2011 propane-powered Ford E-150, E-250, E-350 passenger and cargo vans that will launch in the 2nd quarter of this year. In addition, ROUSH has plans to convert the Ford E-450 cutaway with the 6.8L V10 engine as well.

A bill that will allow $1 million to retailers in the State of South Dakota to install ethanol blender pumps has passed legislation. House Bill 1192 will use funds through the American Recovery and Reinvestment Act of 2009. The prime sponsor of the bill was Representative Mitch Fargen.

Up to $10,000 can be used at each fueling facility to install blends of ethanol up to E85, but must be used between April 1 and May 28. Stations are allowed to use more than $10,000 if installing more than one blender pump.

As first reported by the South Dakota Corn Growers Association, Owen Jones, a farmer and rancher from Britton, South Dakota said, “With the incentives outlined in HB 1192, the State of South Dakota can play a significant role in getting the proper distribution system in place for the future of renewable fuels. Instead of dispensing one product, five different products can be dispensed from one pump. Another reason I am very supportive of this Bill is the fact that this legislation is not only good for the ethanol industry, but it is good for our nation. We need to rid ourselves of the addiction on foreign oil and change to a renewable fuel system which our nation controls.”

South Dakota currently has about 40 ethanol blender pumps throughout the state and nearly 100 E85 stations.

The Renewable Fuels Association (RFA) is urging Congress to ensure full funding of fuels research programs to provide the necessary scientific basis for increasing ethanol blending.

In a letter this week to leaders of both the House and Senate Appropriations Subcommittees on Energy and Water Development, RFA President Bob Dinneen outlined concerns with the budget submitted by President Obama with respect to higher level ethanol testing. Specifically, Dinneen called on Congress to support full funding of the Biomass and Biorefinery Systems program’s Utilization of Platform Outputs R&D subprogram as well as funding for the Vehicle Technologies program’s Fuels Technology subprogram, which were cut or eliminated in the president’s budget.

“President Obama recently reaffirmed his commitment to both current ethanol technologies and next generation opportunities in his biofuels plan released in February,” said Dinneen. “Congress should take this opportunity to ensure these critical fuel research programs are fully funded and to allow America’s ethanol industry to reach its full potential to displace petroleum use in motor vehicles.”

The RFA is calling for the full $24 million for the Vehicle Technologies program’s Fuels Technology subprogram and for an additional $5 million appropriation for the Biomass and Biorefinery Systems R&D subprograms.

Read the letter here.

America is in danger of falling behind Asia when it comes to wind energy production. And the chief of General Electric says that is jeopardizing this country’s energy future.

Business Week reports that in remarks to the ARPA-E Energy Innovation Conference near Washington, DC, General Electric Co. chief Jeffrey Immelt said America must not give away this growth to every other country in the world:

Asia makes more than half the world’s wind and solar energy equipment, and is gaining ground as U.S. factories lose out to cheaper labor and higher demand for clean energy. China for the first time topped the U.S. in wind-turbine manufacturing and installations last year, the Brussels-based Global Wind Energy Council said yesterday in a report.

Immelt has helped lead the U.S. Climate Action Partnership, or USCAP, a coalition of businesses and environmental groups calling for Congress to put a cap on carbon-dioxide emissions. The group says legislation is needed so companies such as utilities and their suppliers know how to proceed with long-term investments. A measure passed by the House last year has stalled in the Senate.

The article goes on to say that Duke Energy Corp. CEO Jim Rogers told reporters at the conference that politicians need to change the argument away from scaring the public with polar bears on melting icebergs to focusing on what will stimulate the economy and create jobs … and then save the environment.

It looks like the federal biodiesel tax credit that expired at the end of last year could have new life.

An extension of the $1-a-gallon blenders credit has been attached to the new, $150 billion American Workers, State and Business Relief Act, introduced by Senate Majority Leader Harry Reid (D-Nev.) and Sen. Max Baucus (D-Mont.). Biodiesel Magazine reports that the measure could come to a vote this week:

Biodiesel producers have watched hopefully and helplessly as a tax credit “extender” has been included now in four different pieces of legislation since last fall. For the time being, the industry remains a ringside spectator.

One Biodiesel Magazine source said the fact that some players in the biodiesel industry were “double-dipping” in 2007 and 2008 by taking the $1 per gallon federal excise tax credit for methyl ester blending, then shipping the fuel to Europe to cash in on additional subsidies, has caused a “public relations issue.”

It’s interesting that the biodiesel credit was too expensive of a provision when it was a bi-partisan measure from Baucus and Republican Sen. Charles Grassley from Iowa. Now, that Reid has his name attached, it is suddenly affordable. Hmmmm…

We’re kicking off a new podcast series this week called SolarCast. As the name suggests, the bi-monthly audio feature will take an in-depth look at the solar industry. The inaugural podcast features some of the antiquated policies that are slowing home solar projects in California.

I spoke with Dan Thompson, the CEO and founder of Newport Beach, California-based MasterCraft Homes Group, who built the largest home solar community in Los Angeles County, called The Gatsby Hollywood. Not only is it the largest solar community in the county, but it’s the first to feature integrated solar panels. In the past, solar panels were attached above the roof; however, Thompson explained, these solar panels become part of the roof, making them even more efficient than their predecessors.

By law, LA County does not allow integrated solar panels to be installed – quite ironic considering the state of California promotes itself as a leader in developing and implementing green technologies. After many, many months of working with legislators, Thompson was able to get a one-time exemption for the installation of the integrated solar panels in the Gatsby. Due to the great response of the first phase of the project, the second phase is underway, which needed, and received, its own exemption.

The current residents of The Gatsby Hollywood have already told Thompson how efficient the solar panels are. A typical, average monthly electric bill, seasonally adjusted is between $125-$150 for an 1,800 square foot home. Gatsby residents, who sell excess power to the grid, see electric bills ranging from $35-$45 per month.

The Gatsby is a green building project and MasterCraft Homes Group is a California Green Certified Builder. Even when factoring all the green elements of the home, including the solar panels, the cost of each house was competitive to a non-green project plus the residents have seen lower energy bills, proving that going green can really save you money.

While Thompson expressed frustration with the amount of time it is taking to try to change legislation — after two years, LA County has still not passed legislation that allows integrated solar panels to be installed -  his company is committed to paving the way for not only their future home solar projects, but projects of other home builders as well.

Listen here for my SolarCast with Dan Thompson.

Podcast: Play in new window | Download (2.9MB)

Since the biodiesel industry is in a struggle for the extension of its $1 per gallon tax credit, I thought I’d spend some time learning more about biodiesel. This week, I read “Biodiesel America,” by Josh Tickell, who also produced the award winning film, “FUEL.” While the book is a tad bit dated (it was published in 2006) the basic information is still good.

Many people perceive biodiesel as a niche fuel, but this is really not correct. Your clothes, food, electronics and toys were all brought to you through a transportation network that runs on diesel. Your children are taken to and from school on buses fueled by diesel. And diesel is highly toxic. According to Harvard University’s Alternative Fuel Vehicle Program, biodiesel emits no sulfur dioxide, 78 percent less life cyle carbon dioxide and as much as 50 percent fewer smog-producing compounds as compared to conventional diesel.

While Tickell notes that biodiesel cannot replace our country’s entire diesel market, and it does face a few challenges that must still be overcome (cold start problems, costs) he writes, “Biodiesel has a bright future as an alternative fuel, both as a fuel blend (B20) and on its own (B100)….While biodiesel does have drawbacks, its similarities to conventional diesel in terms of performance, low cost, and compatibility with our existing fuel infrastructure make it an ideal solution for meeting emerging federal emission requirements and improving air quality now.”

Biodiesel has a higher net energy value than diesel, the feedstocks used are grown or produced here in America, the fuel stays here in America, and it is more environmental friendly and sustainable (all aspects discussed in the book). So why are our legislators in Washington DC dragging their feet in support of this viable alternative fuel?
Read the rest of this post…

Sunny days … and biodiesel … will be sweeping the clouds … and the smog … away as the studio that produces Sesame Street will switch to the green fuel for heat.

The New York Daily News reports Kaufman Astoria Studios just became the greenest studio in town as it switches from traditional heating oil to “Greenheat,” a new blend of petroleum and biodiesel produced by a Brooklyn-based company:

The deal with METRO will provide the Astoria facility – the city’s oldest functioning movie studio – with 80,000 gallons of the new fuel a year, making it the largest commercial user of Greenheat in the city.

“We recognized that there would be a greater demand for sustainable fuels,” said Pullo, 56, whose grandmother started METRO in 1942.

The studio will use a 5 percent biodiesel blend made from used cooking oil from restaurants, soybean and canola oils, and algae.

A proposal to mandate a 5 percent biodiesel blend in every gallon of diesel sold in Iowa has died in one legislative committee … but could be reborn in another.

The Fort Dodge (IA) Messenger reports that the House environmental protection committee’s ranking member, Rep. Steve Olson, R-DeWitt, declared the bill dead:

Olson said the GOP caucus was opposed to the bill because it opposed mandates. However, even though the bill died in one committee, it could be revived in another or amended into another bill before the session ends, he said.

”Right now biodiesel is where ethanol was 15 years ago,” Worthan said. ”There’s no market access for it.” He said he fears that what happened in 2009 with petroleum refiners purchasing failing ethanol plants for pennies on the dollar, may happen soon with biodiesel plants unless they can get a strong financial footing.

Worthan added that biodiesel blends are more uniform than in the past to meet federal standards, and that should make the green fuel more attractive than years ago when standards were a bit looser.

The former head of the U.S. Export-Import Bank and Chief Investment Officer of the U.S. Treasury Department’s Troubled Asset Relief Program (TARP) is bringing his copious financial knowledge to algae-biofuels producer Sapphire Energy.

This company press release says James Lambright will also head Sapphire’s international expansion efforts:

A respected leader in the private and public financial sectors, Lambright rounds out an already impressive leadership team, which, since 2008, has focused its efforts on producing a scalable, renewable, low carbon liquid transportation fuel from algae, sunlight and CO2.

“No matter the issue – climate change, national energy security, or job creation – Sapphire Energy is poised with a solution – Green Crude,” says Jason Pyle, CEO of Sapphire Energy. “We have unequaled expertise in science, energy, and transportation. And now with Jim on board, we’ve added a depth of international markets and finance experience unmatched in our industry. That, plus the recent federal funding award and our healthy independent investment funds, positions Sapphire well down the path to make Green Crude commercial-ready.”

Lambright adds that he is excited to join Sapphire Energy, and it is the perfect place to help address the most complex challenges facing economies around the world: energy security and the environment.

Despite a sluggish economy and challenging growing conditions for corn farmers, ethanol production set a record once again in 2009 of more than 10.75 billion gallons.

According to the latest statitstics from the U.S. Energy Information Administration (EIA), ethanol production reached yet another all time high in December 2009 at 787,000 barrels per day, even though ethanol demand, as calculated by the Renewable Fuels Association (RFA), fell to 750,000 b/d in December.

“Despite trying economic circumstances, America’s ethanol producers once again rose up to meet the challenges the nation has put before it,” said RFA President Bob Dinneen. “Moving forward, once-idled facilities are restarting and new biorefineries are coming online to ensure that the volumes of ethanol called for in the Renewable Fuels Standard are met by domestic supplies.”

Verenium and BP are continuing to work on a month to month basis toward the development and commercialization of cellulosic ethanol.

The two companies today announced another month long extension to the initial 18-month joint development program established in August 2008. The previous extension to the agreement ended today, now it will continue until April 1, 2010 as the parties continue negotiations for a longer-term collaboration. In the meantime, Verenium gets another $2.5 million from BP to co-fund the cellulosic ethanol program for the month of March.