Domestic Fuel

The utility that provides almost all of the power for Hawaii has been given the go ahead to use biodiesel for some of that power production.

The state’s Public Utilities Commission has cleared Hawaiian Electric Company to use between three and seven million gallons of the green fuel made from used cooking oil and waste animal fat, from Iowa-based Renewable Energy Group. This post from BrighterEnergy.org says Maui Electric Company has also been given the go-ahead to use biodiesel from Malaysian conglomerate Sime Darby made from palm oil at a demonstration plant:

HEC will be using the recovered oil biodiesel known as REG-9000 in the new 110-megawatt combustion unit at the Campbell Industrial Park Generating Station, which was completed last year.

Meanwhile Maui Electric is to demonstrate the use of biodiesel in replacing petroleum-based diesel in its generating units at Ma’alaea over a four-month period. The test will assess impacts on air emissions, heat rate, operations and maintenance costs.

The projects will help Hawaii reach its goal of getting 40 percent of its electricity from renewable sources by 2030.

Some tractor pullers will be running green … and I’m not just talking about the John Deere machines out there.

This article from Wallaces Farmer says the National Tractor Pullers Association’s 2010 season will feature a new competition division, the Light Pro Stock class, and with sponsorship from the United Soybean Board (USB), those tractors will be running on soy biodiesel:

“I think tractor-pull enthusiasts will be very impressed by the performance of biodiesel,” says USB director Russ Carpenter, a soybean farmer from New York. “Biodiesel, in many ways, is superior to traditional diesel, and what better way to demonstrate that superiority than to push it to the max the way tractor pullers push their fuel to the max?” According to NTPA General Manager Gregg Randall, many pullers already realize the performance benefits of biodiesel and use biodiesel in competition. “We sent out a questionnaire to our NTPA Grand National Super Farm competitors, and 60% said they use biodiesel fuel in competition,” says Randall. “Many pullers believe in the fuel, and they use it in competition. The consumption should grow with the sponsorship of the Light Pro Stock class.”

The use of soy biodiesel makes sense since it is still the most popular feedstock for biodiesel and the fact that many of the drivers and fans have direct connections to the soybean industry.

As the biodiesel industry anxiously awaits Congress’ renewal of the federal $1-a-gallon biodiesel tax credit, an energy consulting company that specializes in biodiesel and ethanol operations is actually calling for elimination of these types of credits for all biofuels.

This opinion piece in Biofuels Digest from Sklar & Associates makes the case that we don’t have to give the biofuels industries government money to make them competitive with petroleum (which, by the way, gets plenty of government funds):

Although these blenders’ credits have had the effect of keeping biofuels prices comparable to prices received for petroleum based transportation fuels, while providing biofuels producers with enough additional revenue to allow them to remain in operation at a time of falling petroleum prices, it appears that blenders’ credits programs will ultimately prove to be inadequate.

Second, blenders’ credit legislation that is passed is subject to potential revision, discontinuance or repeal, depending on the prevailing mood in the Congress. And investors in projects that rely on price floors that are propped up by blenders’ credits, have no assurance that these floors would be sustained over the project’s life.

So what’s the solution? The article goes on to say that while more taxes on petroleum-based fuels are bad ideas, there are a couple of things that can be done that would equalize cost differentials that different blenders actually incur:

a) A biofuels use mandate imposed by the Federal Government on blenders of gasoline and diesel fuel to create a demand for biofuels; and,

b) A biofuels cost equalization program similar to the FEA’s Old Oil Entitlements program that would make those blenders who do not blend the mandated percentage of biofuels into their petroleum fuels products, to pay the added cost they would have incurred for doing so, to those resellers who blend more than the mandated percentage at a higher cost.

It’s an interesting concept, but I think I would feel better if we got rid of the subsidies to Big Oil and cut the biofuel makers a bit a slack. But, hey, I’m no consultant.

Beginning this week, the Energy Information Administration (EIA) will release weekly ethanol supply and production numbers. In tandem with this change, the Renewable Fuels Association announced that it will begin providing a weekly note in addition to these statistics as well as offer any additional information that the organization feels is important to the market.

For the week ending June 4, 2010, EIA has reported that domestic ethanol production averaged 839,000 barrels per day (b/d). This equates to more than 35 million gallons per day. In addition, EIA noted that more than 768.6 million gallons of ethanol are in storage. For comparison, total finished gasoline demand (including conventional gasoline, reformulated gasoline or RFG and imports) averaged more than 386 million gallons daily for the week.

Due to the fact that this is the first week of data available, there is no historic data with which to compare. However, as a point of reference, the average daily production for June was 694,000 b/d.

For more information on current ethanol production numbers and historical data, visit RFA’s website at www.ethanolrfa.org.

Senate leaders are promising again that there are enough votes to get the biodiesel tax incentive renewed.

This article from The Hill says New York Democrat Sen. Charles Schumer believes his chamber will have the 60 votes needed to pass the federal $1-a-gallon biodiesel tax credit as part of a larger measure introduced by Senate Finance Chairman Max Baucus (D-Montana). But there are still some concerns that differences with the recently passed House version could still hold up the vote possibly next week:

The Senate extenders bill differs from the House-passed version by going easier on taxing “carried interest.” However, income from the sale of investment partnerships would still be taxed as ordinary income, as in the House proposal.

“The bill would also extend important energy tax incentives,” Baucus said. “For example, the bill would extend the dollar-per-gallon credit for biodiesel and renewable diesel. And the bill would extend the manufacturer’s credit for the construction of new energy-efficient homes.”

Biodiesel Magazine is reporting there is enough support to accept House amendments to the Senate amendments that would get the credit to final passage…finally. We’ll keep watching.

Growth Energy and Veyance Technologies, a manufacturer of liquid fuel dispenser hoses, announced today certification has been issued on the final component for an E85 and blender pump dispenser by Underwriters Laboratory (UL). Approval has been given to the Veyance Flexsteel® Futura liquid fuel dispenser hose for use with mid- and high-level blends of ethanol.

An October 2006 decision by UL rescinded previous certification for the hose and entire E85 dispenser. Late last year, financial assistance was provided by Growth Energy to Veyance to accelerate submission of the hose testing. This announcement concludes the final series of UL testing for the “hanging hardware” which is attached to the basic fuel dispenser.

“We have been pleased to work with Veyance on this project in order to facilitate the testing and certification of the hose needed to dispense mid- and high-level blends of ethanol in blender pumps,” said Growth Energy CEO, Tom Buis. “Veyance’s certification on their liquid fuel hose represents a significant step in acquiring the complete certification of a mid- and high-level blend dispenser.”

“Veyance is pleased to offer our customers a dispensing hose that is certified for all level blends of ethanol,” stated Keith Collett, industrial hose marketing manager for Veyance. “Within the next few weeks we’ll start production of the Futura Ethan-ALL hoses and are excited about the potential of mid- and high-level ethanol blends. We appreciate Growth Energy’s support, which was instrumental in advancing the timeline for certifying our hose.”

Certification of a complete E85 and blender pump by UL is expected soon.

Underwriters Laboratories (UL), a US-based provider of safety testing and certification services, has just launched its latest UL-Europe (UL-EU) mark for the European photovoltaics market. The mark is based on the applicable EN safety standards for photovoltaic products. In the U.S. and among the biofuels industry, UL is most well known as the organization that has yet to approve an E85 dispenser - a necessity as our country moves forward with achieving the goals set out in the Renewable Fuels Standard.

For companies operating in the photovoltaics markets based in both North America as well as other countries, UL now offers the ability to obtain the UL-EU mark in combination with UL certificates for the U.S. and Canada, as well as the IEC certificates from a single source. According to UL, the advantage of obtaining the certification is an easier entry to market due to lower administrative and logistics costs, and ultimately, certification expenses. Once certification is achieved, it is valid for 10 years as long as the product does not change or safety requirements are not altered.

In support of the new safety certification, UL is offering companies who are interested in obtaining UL and IEC certificates for global market access the new UL-EU mark for free. This offer also applies to companies that only require the IEC certificate. In addition, for any project started before the end of 2010, UL will not charge for inspection, administration or annual costs for the first year.

In March of this year, UL opened its largest global photovoltaic testing and certification facility in Frankfurt, Germany.

ICM has announced that they have received $25 million in funding from the U.S. Department of Energy (DOE) to aid in the construction and operation of its cellulosic ethanol pilot plant located in St. Joseph, Missouri. The company is also contributing $6 million of its own funds required for the cost-share element of the DOE program. The $31 million cooperative agreement is administered by the DOE’s Office of Energy Efficiency and Renewable Energy and is funded by the American Recovery and Reinvestment Act (ARRA).

“We’re excited to have completed the award agreement with the DOE and look forward to commencing the first phase of pilot plant construction,” said Dave Vander Griend, ICM President and CEO. “ICM understands the importance of utilizing Recovery funds to help strengthen our nation’s energy independence, foster job creation across rural America, and produce cleaner, more sustainable fuel.”

Construction is expected to begin in August of 2010 and ICM anticipates that the first demonstration phase will be up and running by January 2011 and fully operational by 4th quarter 2011. The company will modify its existing dry fractionation grain-to-ethanol pilot plant located at LifeLine Foods, LLC to begin producing fuel ethanol from captive corn fiber and along with two cellulosic feedstocks switchgrass and energy sorghum. Novozymes will be providing the enzymes used in the process.

The company has developed new technology and will be testing pretreatment, hydrolysis and fermentation processes, all critical elements of cost competitive cellulosic ethanol production. Another strategy the company is applying is co-locating the cellulosic plant next to an existing grain ethanol plant to increase efficiencies and accelerate the production of cellulosic ethanol to commercial scale.

Vander Griend concluded, “DOE’s funding of this award will help our industry continue to displace imported petroleum with domestically produced fuels and help accelerate ethanol production targets that were mandated in the federal Renewable Fuel Standard (RFS).”

As BP continues to be lambasted by media, the American government and consumers across the country, the Sundance-award winning film, FUEL, is coming to DVD. This new director’s cut comes with bonus features that offer sound strategies to prevent future oil catastrophes as well as tips on how to reduce energy consumption. The DVD will be released on June 22nd by Cinema Libre Studio in eco-friendly packaging and will sell for $24.95. In addition, the film offers tips on how to “green” your life while saving money in the process.

The film is a powerful portrait of America’s overwhelming addiction to, and reliance on, oil and its message is gaining renewed attention as the world is transfixed by the oil spill in the Gulf and BP’s inability to stop the leak. The film took 11 years to make but demonstrates the power of one individual’s ability to help make change.

FUEL has been embraced by consumers around the world and has been accepted to over 30 film festivals as well as shown in theaters in more than 35 cities. Josh Tickell, the films director and star, has appeared on The Tonight Show with Jay Leno, Good Morning America in addition to features in more than 150 major media outlets. Tickell was also selected as a UN Goodwill Ambassador during the 2nd Annual IREO Renewable Energy Awards Gala last year.

Another interesting DVD bonus is a free downloadable PDF copy of Tickell’s book, “From the Fryer to the Fuel Tank.” In this book, you can learn how to make biodiesel for under $1.00. For more information about the film and to purchase your DVD, visit www.thefuelfilm.

Today, Virent Energy Systems announced that it has closed its third round of funding totaling $46.4 million. Two of the company’s largest investors, Cargill and Shell, increased their financial commitments as part of this funding round as did all other current investors. The money will be used to advance the company’s efforts to bring to market its BioForming process, a patented catalytic biorefinery platform, to commercial production volumes. Virent is a company that specializes in converting plant sugars into sustainable advanced fuels for cars, trucks, trains, and airplanes.

“Virent has a competitive advantage from our strong relationships with two premier, global companies, Shell and Cargill. Their significant capabilities and expertise across the value chain will be essential to accelerating deployment of Virent’s BioForming technology at commercial scale,” said Lee Edwards, Virent President and CEO. “I am especially gratified that our accomplishments to date have resulted in a $46.4 million funding round, which is well above our initial $25-40 million objective.”

The agreement also expands Virent’s existing research and development collaboration with Shell for the production of biogasoline to include diesel fuel and awards Shell a seat on the company’s board.

Luis Scoffone, Vice President of Alternative Energies at Shell said, “This investment demonstrates Shell’s confidence in Virent’s catalytic biofuel production processes. The expansion of our joint technology program to include research into the production of diesel from plant sugars offers considerable potential and complements Shell’s wider biofuels portfolio.’’
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While ethanol supporters continue to wait on the fate of the E15 Waiver, ADM has spoken out today and requested the Environmental Protection Agency (EPA) pass E12 (twelve percent ethanol and 88 percent gasoline). The “Green Jobs Waiver,” also known as the “E15 Waiver” is a request that would allow conventional vehicles to use up to a 15 percent ethanol blend (E15) in their tanks. The ruling must be given by the EPA and the latest rumors coming out of Washington are that the waiver will be passed but with a stipulation on what vehicles would be approved for the higher ethanol blend (potentially cars manufactured 2001 or after).

Today, ADM submitted a formal request to the EPA seeking approval of ethanol-gasoline blends containing up to E12 for all cars. In addition, they also formally requested that the EPA alter its Clean Air Act interpretive rule to allow for the higher oxygen content in E12. The Clean Air Act is the piece of legislation that would need to be changed to legally allow any blends of ethanol in addition to E10 and E85.

In a company statement ADM said, “We commend the EPA for its thorough consideration of the E15 waiver request. ADM continues to support full implementation of the E15 waiver request, but believes that limiting E15 to model year 2001 and newer cars will not meet the goals of the Renewable Fuels Standard (RFS) or the President’s goal of tripling biofuels production over the next twelve years.”

“We believe immediate interim approval and implementation of E12 for all cars provides a sound path to advance our nation’s renewable energy goals,” concluded ADM.

The ethanol industry reacted to ADM’s call to action today
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The only Indy race to still run on homegrown corn ethanol is just around the corner. The 2010 Iowa Corn Indy 250, presented by Pioneer, will once again showcase 100% race powered corn-ethanol during the 4th annual race in Newton, Iowa on June 20.

2010 Indy 500 winner Dario Franchitti won the very first Iowa Corn Indy in 2007, when the series first started using 100 percent ethanol. He says Indy’s transition to ethanol was a winner. “It was a big deal for us when we first switched over to ethanol,” he said during an Indy racing press conference Monday. “We’ve had tremendous success as a series with ethanol and had a really seamless transition. It’s just been a real win-win situation for the IndyCar Series.”

The Iowa Corn Indy 250 has been a win-win for Franchitti, who won it again in 2009. He hopes to be able to take home a third fuel-pump designed trophy this year.

The Iowa Corn Indy 250 is presented by Pioneer, with support from the Iowa Corn Promotion Board and the Iowa Corn Grower’s Association. It is the only Indy race this year to run on corn ethanol, since Brazil’s ethanol industry has taken over sponsorship of the series and provides fuel for the rest of the races.

Listen to or download Franchitti’s comments about ethanol in the player below:

Podcast: Play in new window | Download (1.5MB)

U.S. Secretary of Agriculture Tom Vilsack believes that the Environmental Protection agency will increase the amount of ethanol allowed in regular gasoline above the current ten percent.

“I’m very confident that we’re going to see an increase in the blend rate,” said Vilsack in a telephone press conference from Iowa on Friday.

Vilsack also said that long-term extensions of the ethanol subsidies are needed in order to attract private capital to meet the mandate of 36 billion gallons of ethanol production by 2022. “We need a plan. We need to show that there’s a way to get to 36 billion gallons,” he said. “We want to find out how many refineries we need to build, we need to find out what feedstocks need to be advanced in terms of research and development. We need to figure out how to do things more efficiently with our current systems and how we might be able to incent those efficiencies. We need to figure out a distribution system and how many blender pumps are we gonna need and where are they going to be located and how do we get started doing that.”

The secretary says he has a team working on that plan and hopes to have it ready by the end of summer.

Motorists in Central Florida with Flex Fuel Vehicles (FFVs) can now fill up with 85 percent ethanol in Lakeland.

The Renewable Fuels Association (RFA) and Protec Fuel have announced the availability of E85 for both the general public and government fleets at the Fleetwing retail station in Lakeland, which is near Tampa and St. Petersburg.

The station utilized Protec Fuel’s turnkey E85 fuel program which included the conversion process to an E85 fueling pump, E85 supply and promotional marketing. Protec’s fuel supply and marketing program for Fleetwing is built around a strong strategic partnership with the Renewable Fuels Association, General Motors, Testing LLC and many other reputable companies. Fleetwing also supplies a private fleet E85 fueling station in Lakeland.

RFA Market Development Director, Robert White says efforts to install more of these types of fueling stations are underway with a goal to at least triple the availability of these blends within the next few years. “Florida alone has added several new E85 fueling stations installed within the past two months,” he said.

The Brazilian Innovation Agency, FINEP (Research and Projects Financing), and Brazil’s National Development Bank have entered into a new partnership to promote bioethanol development, providing up to $540 million in financing to the country’s biofuels sector to promote innovation in the field of bioethanol.

The funding will be invested in technology projects over the next three to four years, which would advance the use of sugarcane bagasse and straw, to produce second generation ethanol and new products such as polymers, special oils and biodiesel. This is an initial step toward the development of an industrial complex for ethanol in Brazil, following a similar model to that of Brazil’s petrochemical industry. The goal is to double Brazil’s ethanol production capacity in the country without increasing the area necessary to plant sugarcane.