Domestic Fuel

U.S. Rep. Gabrielle Giffords (D-Ariz) has announced the introduction of legislation that would make it more affordable for schools to install solar power systems. The Solar Schools Act was announced during a day-long tour of Tuscon, Arizona that highlighted the state’s burgeoning solar industry.

“School buildings are used most heavily during the day, during the same hours that solar energy generation is highest,” Giffords said. “Making it more cost-effective for schools to install solar-generating systems will lessen our dependence on foreign oil and save money for cash-strapped schools.”

The Arizona Leadership Solar Bus Tour was hosted by Giffords along with the Arizona Economic Resource Organization, the University of Arizona and SCF Arizona. Giffords, who is a member of the House Science and Technology Committee, is one of the leading proponents of solar energy and has installed solar panels on her own home. Last year, she introduced the Solar Technology Roadmap Act which was approved by a bipartisan majority in the House last October.

“Tucson is rapidly becoming a national leader in solar-related businesses and in the installation of solar panels,” said Giffords. “The border area of southern Arizona is one of the best areas in the world for the generation of solar power, with more than 300 days of sunshine every year.”

The new Act would combine two solar development approaches: financing a solar installation project through tax exempt bonds and the ability to claim the investment tax credit – making solar energy more affordable. Ultimately the Solar Schools Act would enable schools to use the proceeds from tax-exempt bonds to enter into pre-paid contract for renewable energy.

Today, the Biotechnology Industry Organization (BIO) released a letter to House and Senate appropriators asking them to fund the Section 942 of the Energy Policy Act of 2005 labeled as Production Incentives for Cellulosic Biofuels to the tune of $25 million for 2011. Known as a reverse auction program, BIO is encouraging this action as a way to assist pioneer cellulosic biofuels producers in the U.S. in an affordable manner.

“The reverse auction program rewards pioneering cellulosic biofuel producers who can provide the most cost effective product,” explained Brent Erickson, executive vice president for BIO’s Industrial and Environmental Section. “This program, if closely coordinated with other federal programs, can stimulate the private investment needed to build large-scale biorefineries to meet the energy production and greenhouse gas reduction goals of the United States.”

BIO cites several Congressmen and Senators who have supported this request, in particular Representative Bruce Braley (D-Iowa) and Senators Tom Harkin (D-Iowa), Richard Lugar (R-Ind), Evan Bayh (D-Ind) and Edward Kaufman (D-Del.).

The official bio report, “U.S. Economic Impact of Advanced Biofuels Production,” yielded several key findings:

• • Direct job creation from advanced biofuels production could reach 29,000 by 2012, rising to 94,000 by 2016 and 190,000 by 2022.
  • Investments in advanced biofuels processing plants alone would reach $3.2 billion in 2012, rising to $8.5 billion in 2016, and $12.2 billion by 2022.
  • Direct economic output from the advanced biofuels industry, including capital investment, research and development, technology royalties, processing operations, feedstock production and biofuels distribution, is estimated to rise to $5.5 billion in 2012, reaching $17.4 billion in 2016, and $37 billion by 2022.

“Advanced biofuels are a key to creating new jobs and revitalizing the U.S. economy. Development of the advanced biofuels industry could produce hundreds of thousands of new green jobs and contributing more than $140 billion in economic growth by 2030. Rapidly increasing U.S. production of advanced biofuels is also a sound way to significantly reduce U.S. reliance on imported petroleum and carbon emissions associated with climate change,” concluded Erickson.

You can download the full report here.

Three CEOs of companies working toward next-generation biofuels will take the stage at Fortune Magazine’s Brainstorm Green conference in California next week.

Joining the conversation on “Beyond Corn Ethanol?” will be Jeff Broin of POET, William Roe of Coskata and Jonathan Wolfson with Solazyme. Broin will also take part in another discussion on “Renewable Energy – Hype and Reality” with David Crane of NRG Energy; Bill Gross, Founder of eSolar and Idealab; Katrina Landis, BP Alternative Energy Division CEO; and Martha Wyrsch, President of Vestas Wind Systems.

Other topics at the conference include clean technology, the role of government in current and future energy issues, sustainability, electric cars, and more.

Registration and more information about the conference can be found here on-line.

Got nice note from our friend, Tamra Fakhoorian with the National Algae Association’s Mid-South Chapter, who just recently completed a workshop in Huntsville, Alabama, entitled, “Algae: Mining Wastewater for Nutrients, Fuel, and Fertilizer.”

She tells us they had a good mix of attendees from all over the country who heard presentations from some of the nation’s leading experts on algae and its impact on the bioenergy field:

In addition, attendees learned of algae’s tremendous potential as a cost-effective bioremediation tool for wastewater streams, effecting a more stable and healthy ecosystem. Two such algae bioremediation systems were well represented by Mark Zivojnovich’s presentation on HydroMentia’s Algal Turf Scrubber and Lucas McConnell of Renewergy unveiling his company’s vertical algae system for nutrient recovery. Open pond scenarios for wastewater nutrient mining were described by Dr. Kimberly Jones of Alganomics and Dr. Aron Stubbins of Virginia Coastal Energy Research Consortium.

“Our goals for this workshop were to first raise awareness of the algae/wastewater connection for a wide variety of valued end products and using algae for bioremediation. Next, we focused on the many sources of point and non-point sources of wastewater and discussed algal growth system applications. Third, we placed emphasis on why we must address our nation’s finite phosphate supply and how algae is perfectly equipped to reclaim it from wastewater streams,” said workshop coordinator, Tamra Fakhoorian.

Attendees had comments, such as “Great event! Each presenter complimented the other with valuable information. Great question and answer session at end of day to touch on subjects not mentioned by presenters.”

Tamra promises more events and workshops in the future. If you’re interested, just contact Tamra at TamraF.NAA@wk.net

It might have been quite the load when J. Peterman said , “You may know it better as Myanmar, but it’ll always be Burma to me.” But now the man who played Elaine’s bombastic boss on Seinfeld is turning literal crap into energy.

John O’Hurley, who also is known for his hosting role on the TV game show Family Feud and on Dancing with the Stars, will now be part of an company that turns hog manure into power. This article from Biomass Magazine says O’Hurley and his new company Energy-Inc. have inked a deal to put in a system at High Ridge Farm in Greenville, N.C., that will turn the waste from the farm’s 3,000 hogs and into electricity:

O’Hurley said his interest and convictions in renewable energy aren’t a surprise to those who know him, and described the company’s initiatives as the result of a two-year ramp up. “The technology hasn’t had a presence in this country, but it’s been used with quite a bit of success for the last 10 years or so in Europe and Asia because fuel prices, historically, have made it a comfortable environment,” he said.

Nevada-based Energy-Inc. has an exclusive license to distribute the ATCT system, which O’Hurley said involves two main platforms. “One, we take any waste that has a Btu value such as manure, municipal solid waste, agriculture waste, wood waste—anything not nuclear or metal—and produce electricity with near zero emissions through a pyrolytic gasification technology,” O’Hurley said. “We super heat the waste without the presence of oxygen to generate a synthesis gas; the gas turns a generator if necessary or can used as a replacement for natural gas. It’s an entirely closed system and produces steam, heat, hot water and residual biochar.”

The system is expected to process 12 tons of biomass a day and should be complete and operational within six months.

The maker of electric trucks that can run all day on a single charge is getting some help to expand its Kansas City assembly facility.

The Kansas City Star reports that the $22 million federal Department of Energy grant to Smith Electric Vehicles is in addition to $10 million the DOE gave the company last August:

Kevin Kelly, chief financial officer for Smith Electric, said the Kansas City facility has 50 employees assembling two trucks a week. By the end of the year, it hopes to be assembling 25 trucks a week and to have more than 100 employees, including workers in research and development.

“We remain confident how deep the market is in this area.”

The money will help pay for vehicle development and establish a demonstration program to show how the trucks perform in different applications. Customers will be able to get subsidies to participate in the demonstration program.

Some of Smith’s customers include Frito-Lay, Staples and Kansas City Power & Light.

Nearly 60 ethanol plant managers attended the second Process Optimization Seminar held in Indianapolis this week. The interactive seminar is a team effort of Fremont Industries, Fermentis, Novozymes and Phibro Ethanol Performance Group.

“All four of us companies got together and realized a need to provide training for plants,” said Steve Rust with Fremont. “So we decided to provide this for them where each of us share our expertise on how we can help plants optimize their process.”

Their first seminar was held last year in Minneapolis and Rust says they will be having another one later this year in Kansas City. “We try to move them around the country,” Rust says. Because the seminars are very interactive, the number of participants is limited to about 60. The seminar is targeted at all levels of ethanol plant management, including operations, technical, lab and general managers.

The Kansas City seminar will be held September 1-2 and registration will be open on July 1.

Listen to my interview with Steve here:

Podcast: Play in new window | Download (1.7MB)

Iowa-based Renewable Energy Group has had to lay off 45 percent of its workforce in the company’s home state, due to the failure of Congress to renew the $1-a-gallon federal biodiesel tax credit.

REG is expected to meet with two key members of Congress, Senator Dick Durbin (D-Illinois) and Rep. Steve King (R-Iowa), at REG facilities in each of the congressmen’s home states.

In addition, REG Chairman and CEO, Jeff Stroburg, sent U.S. House Ways & Mean Committee chairman Sander Levin a letter pleading his case for reinstatement of the incentive:

The reinstatement and retroactivity of the biodiesel tax credit is critical to putting these employees back to work.

We know the countless issues you face each day each deserve your attention and I know you work tirelessly to address each one; however, ours is becoming increasingly critical for our survival.

The earliest Congress can take up the issue would be the week of April 12th, when it returns from spring break. Meanwhile, those REG biodiesel workers … and approximately 23,000 others across the country … are on a break from drawing a paycheck.

Meanwhile, REG has started a Facebook fan page to urge Congress to reinstate the biodiesel tax credit:

Can we get 500 emails into the House Ways & Means Committee to aid the biodiesel industry? Tell our legislators to reinstate and make retroactive the biodiesel tax credit TODAY!

“Reinstatement of the federal blenders biodiesel tax credit is a national energy security and green collar jobs issues. It is urgent for the biodiesel industry that the biodiesel tax credit, within HR 4213, be passed and sent to the President’s desk for signature as soon as possible.”

Today the Environmental Protection Agency (EPA) and the Department of Energy (DOE) signed a joint final rule that establishes greenhouse gas emission standards and corporate fuel economy standards for light duty vehicles for model years 2012-2016. This National Fuel Efficiency Policy requires passenger cars and light trucks to get an overall average of 35.5 miles per gallon (mpg) by 2016 while cars are expected to average 39 mpg and trucks will be required to get 30 mpg. According to the current administration, this measure is expected to save 1.8 billion barrels of oil over the life of the program.

However, we could actually reduce oil imports and emissions even more under this program by using ethanol.

Ricardo’s EBDI engine technology

Let me explain. The easiest way to gain the improved fuel economy is through “engine downsizing,” in other words, using smaller engines. But the new smaller engine technologies will not mean less power, like in the past. According to Ethanol Boosting Systems, their technology enables gasoline engines to “reach their full potential” by utilizing performance enhancing properties of ethanol in conjunction with advances in direct injection (DI) and turbocharging.

Here is how their system works: The EBS approach uses controlled direct ethanol injection to add a very significant vaporization-enhanced On-Demand Octane BoostTM that essentially removes the knock limit on engine performance. The elimination of the knock constraint has been proven by systematic engine dynamometer tests. This allows a small gasoline engine to provide the same or higher torque as compared to a conventional engine of much larger size.
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The the U.S. Department of Transportation’s National Highway Traffic Safety Administration and the U.S. Environmental Protection Agency and unveiled new fuel economy rules today that will begin phasing in in 2012. According to EPA, the rules could potentially save the average buyer of a 2016 model year car $3,000 over the life of the vehicle and, nationally, will conserve about 1.8 billion barrels of oil and reduce nearly a billion tons of greenhouse gas emissions over the lives of the vehicles covered.

“This is a significant step towards cleaner air and energy efficiency, and an important example of how our economic and environmental priorities go hand-in-hand,” said EPA Administrator Lisa P. Jackson. “By working together with industry and capitalizing on our capacity for innovation, we’ve developed a clean cars program that is a win for automakers and drivers, a win for innovators and entrepreneurs, and a win for our planet.”

Automobile manufacturers are expected to meet these standards by more widespread adoption of conventional technologies that are already in commercial use, such as more efficient engines, transmissions, tires, aerodynamics, and materials, as well as improvements in air conditioning systems. EPA and NHTSA also expect that some manufacturers may choose to pursue more advanced fuel-saving technologies like hybrid vehicles, clean diesel engines, plug-in hybrid electric vehicles, and electric vehicles. The new regulation allows automakers to get credits for building flexiblie fuel vehicles until 2015, but after that, it must show the alternative fuel is being used to get credits.

“America needs a roadmap to reduced dependence on foreign oil and greenhouse gases, and only the federal government can play this role,” The Alliance of Automobile Manufacturers President and CEO Dave McCurdy said, “The national program announced today makes sense for consumers, for government policymakers and for automakers.”

NHTSA predicts that passenger cars will have to average 33.3 mpg in 2012, a figure that rises to 37.8 mpg in 2016, light trucks, including SUVS, pickups and vans, will be required to average 25.4 mpg in 2012 and 28.8 mpg by 2016.

Several high school students from Durand High School in Wisconsin, took first place in the national Shell Eco-Marathon, with their ethanol entry. The challenge was to build a car with the best fuel economy and the Wisconsin team was the only team to enter a vehicle fueled by ethanol. After a snafu with another vehicle that ran into their car, they were able to achieve 345 miles per gallon using ethanol. Their original goal was to go more than 700 mpg which was squashed after their brakes and alignment on their car was thrown off due to the crash.

“There’s a track we have to do 10 laps on and that’s a total of 6 miles. They measured the fuel before the event and after,” student Ted Wayne said in an interview with WEAU-TV.

The students competed against other high school teams as well as college teams and many of these groups has a larger budget. however, it didn’t stop these dedicated students from winning. The three students who traveled to the event in Texas all plan to attend UW-Stout next year and are already planning on starting a club that will compete in future challenges. Ultimately, the team said their goal is to beat Purdue.

Brazil’s 2010/2011 harvest officially begins today, and it is predicted that there will be a 10 percent increase in sugarcane production this year, as compared to last year. This according to the Brazilian Sugarcane Industry Association (UNICA) who is estimating that the sugarcane harvest should reach 595.89 million tons, compared to 541.50 million tons last season. Final 2009/10 production numbers are expected in the next few weeks as the harvest season officially came to a close yesterday.

According to UNICA’s Technical Director, Antonio de Padua Rodrigues, the increased harvest forecast has to be carefully evaluated. “The cane available for ethanol and sugar production in the 2010/11 harvest is virtually the same as in the 2009/10 harvest, which was severely hampered by unfavorable weather conditions. In other words, in terms of crushing, the new harvest should be what the industry was simply unable to complete in the previous harvest.”

According to UNICA, the data collected via satellite images shows no discernible expansion of the area dedicated to growing sugarcane. The expected increase is actually due to a large volume of “bisada” cane, sugarcane that was not processed in the last harvest and has now been growing for two years. Another factor for the larger production is attributed to the gradual increase in production at new mills, especially in the states of Mato Grosso do Sul Goias and Minas Gerais.

Of the total cane volume expected for the 2010/11 harvest, UNICA projects that 43.29 percent will be destined for the production of sugar, and 56.71 percent will be used for ethanol production. Of the ethanol production, estimated to be 27.39 billion liters, 20.14 billion are expected to be produced as hydrous ethanol.

Last season’s reduced harvest caused the amount of ethanol mandated by the country to be lowered. If this season’s harvest goes as predicted, it is anticipated that the ethanol blend levels will be increased to former levels.

A new report commissioned by the UK’s Department for Environment, Food and Rural Affairs (DEFRA) has concluded that drought and high oil prices, not biofuels, were behind the so-called food crisis of 2007/2008.

“Available evidence suggests that biofuels had a relatively small contribution to the 2008 spike in agricultural commodity prices,” the report noted. “Studies which have found a large biofuel impact across agricultural commodities have often considered too few variables, relied on statistical associations or made unrealistic or inconsistent assumptions.”

The Global Renewable Fuels Alliance (GRFA) welcomed the report’s findings. “This food crisis event in 2008 allowed critics of ethanol to make an easy scapegoat of the industry during a period of unprecedented expansion in ethanol production,” said GRFA spokesperson Bliss Baker. “This is a lesson for us all about the dangerous impact of rising oil prices and the willingness to look to an easy answer, not necessarily the right answer.”

The report found that speculators responding to rapidly declining global wheat stocks caused by ongoing drought originally triggered the crisis, which was exacerbated by countries imposing export restrictions on grains that drove prices even higher. The simultaneous spike in crude oil prices to record levels put upward price pressure on all commodities making the food crisis a truly global event. “The primary impact of high oil prices on agricultural commodities seems still to be through the supply-side, via increased costs of production, rather than the emerging demand-side channel of biofuels,” the report noted. “Fuel and fertiliser account for over half of operating costs of crop farms but many commentators have ignored oil’s ongoing importance as an input into agricultural production.”

Going forward, the report is very optimistic about the world’s ability to respond to both demand for biofuels and the need for additional cropland citing vast amounts of under utilized agricultural reserves around the world.

Read the full report here.