Domestic Fuel

It’s been more than six months since the federal $1-a-gallon biodiesel tax incentive was allowed to expire, and more refineries … and even some mandates … are in serious trouble.

This story from News14 in Charlotte, North Carolina says Patriot Biodiesel in Greensboro is in danger of closing because of the loss of the credit:

“People aren’t buying biodiesel, not because they don’t like biodiesel but because the price is too high, much higher than the price of diesel now,” [Gabe Neeriemer, co-owner of Patriot Biodiesel] said. “Our price stays the same, no matter what’s going on with the price of diesel, and the price of diesel has dropped considerably.”

“Every biodiesel company in the nation is struggling right now,” he said. “Most have closed their doors, 80 percent of biodiesel refineries have shut down and the 20 percent that are still open are operating under 50 percent capacity. Most are operating under 20 percent capacity, just enough to keep the doors open.”

Meanwhile, Biodiesel Magazine reports that Massachusetts’ biodiesel mandate is being suspended indefinitely:

Dwayne Breger, director of the renewable energy division for the department said that the Clean Energy Biofuels Act provided the commissioner with several outs, or possible reasons to suspend the mandate, “and price impact was one of them,” Breger said. “The expiration of the federal tax credit would cause the full brunt of the extra cost to be borne by the Massachusetts consumer.”

Breger said without the $1 per gallon federal blender credit on the books, the added cost of a B2 blend would be around 3 cents per gallon.

The article goes on to say that some in the industry worry that the damage by the loss of the incentive could be irreversible at this point and set a bad precedent for other states that are considering their own mandates or with pending ones.

Many school-age children spend quite a bit of time riding the bus. Unfortunately, many reports have indicated that the emissions from buses are extremely harmful, especially for those children with health issues such as asthma. Today, ROUSH Performance Products and Micro Bird, Inc. have announced that they have integrated the ROUSH Liquid Propane system into the new 30-passenger Micro Bird by Girardin, a Type A School, Multi-Function School Activity Bus (MSFAB) and Commercial Bus. One of the biggest benefits – significantly reduced tailpipe emissions.

“Propane is a perfect alternative fuel option for school districts that must reduce their operational costs as well as lower their emissions,” said Jack Roush, motorsports legend and chairman of ROUSH Enterprises. “Historically, propane trends 30 to 40 percent less than diesel which helps the school districts to stretch their fuel budget considerably further, and there is no question that the emissions are much cleaner.”

On the emissions front, ROUSH says that propane burns cleaner than gasoline or diesel, with up to 20 percent less nitrogen oxide, up to 60 percent less carbon monoxide, 24 percent fewer greenhouse gas emissions, and fewer particulate emissions when compared to gasoline. They also promote the cost-savings benefits of the fuel.

“We are excited to partner with an industry leader like Micro Bird,” said Todd Mouw, vice president of sales and marketing for ROUSH. “We have spent four years perfecting this liquid propane injection technology and this partnership will show that propane is the best alternative fuel for school districts and shuttle operators across North America.”

Bill Danner, Blue Bird vice president of sales, North America concluded, “We are thrilled by the introduction of the new Propane-Powered Micro Bird as it extends Blue Bird’s offering of affordable green solutions into all school bus vehicle segments.”

The buses will be sold exclusively by Blue Bird Dealers throughout North America. Sales will begin in July with production scheduled for late 2010.

An article in the San Francisco Chronicle this week blames ethanol production for the so-called “dead zone” in the Gulf of Mexico, which it compares to the oil disaster currently facing that body of water.

The article prompted a response from Renewable Fuels Association president Bob Dinneen, who starts off a letter to the editor by saying, “it is clear the San Francisco Chronicle has a dead zone of its own where facts die and science is buried.”

Dinneen notes that scientific study of hypoxia in the Gulf, which creates what is called a “dead zone” where oxygen is depleted, has failed to find any one cause. Dinneen quotes one researcher who says, “credible evidence shows that [excess] nutrients [in the Gulf] may also be derived from atmospheric deposition, sewage and industrial discharge and fertilizer runoff from residential areas. Nutrient runoff from suburban areas roughly equals that of agriculture lands.” That would include things like golf courses, residential lawns and office parks.

As to ethanol contributing to an increase in Gulf hypoxia, Dinneen says, “The facts dispute the very basis of the article. U.S. cropland has not expanded because of ethanol. There are fewer acres of corn today in the U.S. than there were in the 1920s-1940s. Corn acres topped 100 million acres several times in the late 1920s/early 1930s. Compare that to this year’s corn acreage of 87.9 million. In fact, corn acres have fallen 6% since 2007.”

Read Dinneen’s letter here.

Just yesterday, I told you how International Fuel Technology had just recently finished testing on a couple of its fuel additives that make biodiesel run better with more miles per gallon.

Now, the St. Louis-based company has announced that East Midlands Trains in the United Kingdom, which were the test trains for DiesoLiFT 10 in its light rail, diesel multiple unit (DMU) operations, will continue to use the additive and could save about 92,000 gallons of diesel fuel a year:

“The fuel economy improvement realized by East Midlands Trains in the recently completed in-service field demonstration is consistent with fuel economy improvements we have achieved in numerous other in-service and test bed rail engine demonstrations,” said Gary Kirk, IFT’s Director and Sales and Marketing. “Use of DiesoLiFT 10 will reduce fuel consumption and harmful emissions. We are excited to work with a company committed to cost effective green technologies.”

Matt Browne, East Midlands Trains’ Environmental Manager, said, “We are extremely pleased to be the first train operator taking part in this in-service field demonstration with IFT. The results are already demonstrating that by using the fuel additive, DiesoLiFT 10, we are improving our fuel efficiency and cutting our carbon emissions. Trains are already one of the most environmentally friendly forms of transport, and use of DiesoLiFT 10 is helping us make our trains even greener.”

Trains in the UK use around 317 million gallons of diesel a year. DiesoLiFT 10 could save 16 million gallons of fuel annually.

A colleague of mine, Will Thurmond, who is the CEO of markets research firm Emerging Markets Online, sent me this great article about why companies are spending billions of dollars investing in advanced biofuels in Brazil while companies are hesitant to invest in any biofuels projects here in the states. I thought that it was so insightful that I wanted to share it with you here.

“US Biofuels Investors, Technologies Migrate to Brazil”

As we enter a new decade in 2010, why are Shell, Bunge, LS9, Dow, BP, Amyris and Cobalt collectively investing more than $20 billion dollars into advanced, sustainable biofuels in Brazil? The big dance between Brazil, US and EU public and industries kicks off a new era in international biofuels investment.

Bossa Nova – The New Wave
Bossa Nova (translation: the new wave, mixing old traditions with new trends) is an evolutionary art form. In the case of the agri-fuels business, Brazil’s new wave of advanced, sustainable biofuels investments represents a heady mixture of sugars and cellulosic carbohydrates into ethanol and hydrocarbon fuels, renewable diesel, biochemicals, biobutanol, biopolymers, and advanced, low-carbon drop-in replacement fuels.

Enter Brazil. For more than 30 years, Brazil has lead the world in sustainable biofuels production. At the dawn of a new decade, Brazil is  emerging as a world leader in advanced, sustainable biofuels investments, along with new technologies from private sector partners in the US and EU. In 2010, Brazil’s progress in private sector biofuels investment is charging ahead, while EU and US government policies are effectively reducing ethanol biofuels targets due to political uncertainty and slower growth related to cellulosic biofuel feedstock production economics.
Read the rest of this post…

A new study from Informa Economics will be unveiled Wednesday at “Fuel Freedom, the Indiana Ethanol Forum,” a first time event presented by the Indiana Corn Growers Association and sponsored by the Indiana Corn Marketing Council and Growth Energy, according to a story from Hoosier Ag Today.

Dallas Clark from the Indianapolis Colts and General Wesley Clark, co-chairman of Growth Energy, will be the featured guests at the event designed to help inform Indiana political and business leaders about the importance of the ethanol industry to the state of Indiana. As part of the program, the Colts’ Clark will present a scholarship for the best video submitted as part of the Hoosier Horsepower education program.

Hoosier Horsepower is a partnership between Indiana Soybean Alliance, Indiana Corn Marketing Council and the Indianapolis Colts to provide educational programs for K-12 students to learn more about biofuels made from corn and soybeans raised in Indiana.

Two lucky Flex Fuel Vehicle (FFV) owners received some American grown fuel for Independence Day, courtesy of Growth Energy.

The ethanol organization announced the winners of the “Fuel on the Fourth” contest offering nearly $300 in flex fuel cards to Flex Fuel Vehicle (FFV) owners. Contestants had one month to submit a photo of themselves with their FFV along with a caption describing why they choose to buy flex fuel for their vehicle.

Two winners were selected from the submissions. First place winner Jane Marie Connell of Granite Falls, Minn. and second place winner Harvey Fliehs III of Groton, S.D. will receive flex fuel cards worth $185 and $85 respectively, to be used for the purchase of flex fuel for their vehicles. Both winners will receive their cards in time for the Independence Day weekend.

Connell’s name was chosen through a random drawing for the first place prize while second place winner Fliehs was selected for his creative submission and photo (pictured). In his submission, Fliehs, a farmer in South Dakota, wrote, “Using flex fuel is an everyday reminder that the corn we produce is making a positive impact on our community, environment and country. Our family is a 3rd generation farm, where not only the farm is passed down but the name as well. We’re proud to provide a sustainable fuel source that we can pass down to generations to come.”

Researchers at the University of Manitoba are finding a new use for discarded coffee cups by turning them into cellulosic ethanol.

According to a story from Canada’s CBC News, the researchers are using one particular kind of disposable coffee cups, from the Tim Hortons coffee chain, founded in 1964 in Hamilton, Ontario and very popular in Canada. Microbiologists Richard Sparling and David Levin started the project last year when they noticed all the discarded coffee cups from Tim Hortons outlets on the University of Manitoba campus and came up with the idea that they might make good food for bacteria they were testing to make biofuels. So far, they’ve found that 100 Tim Hortons cups can make 1.3 litres of ethanol, or about a third of a gallon.

The researchers say the Tim Hortons cups, as well as other paper products, are processed and pre-treated to be “bacteria-ready” and therefore could be a great source of waste material for cellulose to make ethanol. Interestingly, they found that the bacteria seem to like the Tim Hortons cups better than similar cups from other places like Starbucks, which may be due to the specific recipe for the paper used by the manufacturer that supplies the cups to each company.

Read more here.

Thanks to the collective support of a number of sponsors, including ICM-Ethanol USA, Ryan Hunter-Reay will continue to drive the No. 37 IZOD-sponsored car for Andretti Autosport for the rest of the season.

The car will continue to have the primary sponsorship of Team IZOD, with the exception of the August race at Chicagoland Speedway and another race to be decided where Ethanol USA will be the main sponsor as it was for the Iowa Corn Indy 250. ICM-Ethanol USA announced sponsorship of Hunter-Reay last month at the Fuel Ethanol Workshop in St. Louis. Along with Ethanol and IZOD, he is supported by sponsorships by Dr. Pepper Snapple Group, Inland, AirTrain Airways, Comfort Revolution, the Michael Fux Foundation, and Exel.

Andretti Autosport also unveiled a charitable initiative connected to the No. 37 entry called “Racing For Cancer.” The program will help support cancer research in honor of Ryan’s mother Lydia who died of cancer in November of last year.

“I’ve never seen anything like this. So many people pulling together to make things happen,” said Hunter-Reay. “I was really close to my mom. For all of this to come together, it was for the right reasons. All of the sponsors in this amazing team have contributed to make this happen.”

The Racing For Cancer program officially launched July 4 and will raise funds for the rest of this season for two national charities, The Michael Fux Foundation and LIVESTRONG. To contribute, go to www.racingforcancer.org.

The solar industry in this country could be getting quite a boost, as Pres. Barack Obama announced over the weekend $2 billion in conditional commitments

The President says the money for two companies will come from the Stimulus Bill:

The first is Abengoa Solar, a company that has agreed to build one of the largest solar plants in the world right here in the United States. After years of watching companies build things and create jobs overseas, it’s good news that we’ve attracted a company to our shores to build a plant and create jobs right here in America. In the short term, construction will create approximately 1,600 jobs in Arizona. What’s more, over 70 percent of the components and products used in construction will be manufactured in the USA, boosting jobs and communities in states up and down the supply chain. Once completed, this plant will be the first large-scale solar plant in the U.S. to actually store the energy it generates for later use – even at night. And it will generate enough clean, renewable energy to power 70,000 homes.

The second company is Abound Solar Manufacturing, which will manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs. A Colorado plant is already underway, and an Indiana plant will be built in what’s now an empty Chrysler factory. When fully operational, these plants will produce millions of state-of-the-art solar panels each year.

It was just more than a month ago that Obama called for more alternative energy while on a trip to a California solar manufacturing plant (see my post from May 26, 2010).

Canadian biodiesel maker QFI Biodiesel Inc. has received $750,000 ($800,000 Canadian) in repayable funding from the Canadian giovernment for starting its Saint-Jean-sur-Richelieu refinery.

This government press release says the plant will make biodiesel from animal and vegetable oils to be sold in Quebec, Canada and internationally:

“The Government of Canada is proud to support small and medium-sized businesses that, like QFI Biodiesel, are helping to build prosperity and create jobs through their vision and determination. This financial assistance constitutes a real investment in the social and economic development of the Montérégie and one that is sure to help position the region advantageously in this growth sector, both here and around the world,” noted [the Honourable Denis Lebel, Minister of State for Canada Economic Development].

The money for the startup is coming from Canada’s version of the Stimulus Bill.

A St. Louis-based company has recently finished testing of a product that not only will boost the performance of biodiesel … just in time as more people look at using higher blends of the green fuel … but some it is being made from renewable feedstocks.

International Fuel Technology’s Director of Science and Technology, Sergio Trindade, explains IFT’s DiesoLiFT 10, designed to reduce harmful emissions and maintenance costs when mixed with diesel fuel and biodiesel fuel blends, and DiesoLiFT BD-3, formulated to give biodiesel superior oxidation stability and deposit control benefits, optimizes the compression combustion that takes place in the engine.

“Which means the surface exposed to combustion is much larger than the ordinary injection system without our additive.”

He goes on to explain that this optimization becomes more important as the industry moves to higher blends of biodiesel, such as B20.

“When you get to those higher biodiesel concentrations, you lose some of the mileage. The use of our product helps makeup for that loss in mileage.”

If you’re wondering if you would be replacing the cost of the biodiesel with the cost of IFT’s additives, Trindade says while the additives produce a 4.5 percent increase in mileage, you’ll spend only that first 1 percent to use the additive. That means it still returns about four-to-one on the investment.

Trindade adds they are making a portion of IFT’s DiesoLiFT 10 and DiesoLiFT BD-3 from some of the same renewable feedstocks used for biodiesel and hopes to increase those feedstocks in the future.

You can hear more of my conversation with Sergio Trindade in the player below.
Sergio Trindade, IFT interview

North Dakota flexible fuel drivers are celebrating the freedom to use a domestically produced fuel in their vehicle. As a goal to educate, the Clean Air Choice Team, which includes the American Lung Association in North Dakota, is encouraging motorists to use mid and high level ethanol blends over the 4th of July weekend.

“Even though North Dakota is an oil-producing state, and many people benefit directly and indirectly from the revenue and jobs created by the petroleum industry, it is still very important that we look for other types of fuels that are more renewable, better for our environment and better for our health,” said Robert Moffitt, a spokesperson for the American Lung Association in North Dakota. “We calculate that if a single flex fuel vehicle is fueled with E85 instead of gasoline for a year, it prevents 4 tons of emissions from entering our air.”

The Meeker County Corn Growers, Minnesota Corn Growers Assn., US Dept. of Clean Cities, American Lung Assn. of MN and the MN Clean Air Choice team is also promoting the use of E85 next week. E85 will sell for 85 cents off per gallon on Thursday, July 8 from 2 until 5 p.m. at the Consumer’s Coop Cenex at 1025 East Frontage Rd. in Litchfield, MN.

For more information on events in MN and ND, go to www.CleanAirChoice.org.

As the July 4th weekend kicks off, the American Coalition for Ethanol (ACE) is reminding everyone that energy independence can be achieved through choice at the pump.

To reinforce this message, ACE has confirmed that Anne Korin, author of “Turning Oil Into Salt: Independence Through Fuel Choice,” chair of the Set America Free Coalition and nationally sought after expert, will provide a keynote address on consumer choice at the pump, August 4th, during their national conference August 3-5 in Kansas City.

“We are so pleased that Anne Korin will be joining us for our national ethanol conference next month to share her expertise on how America can achieve energy independence,” said Brian Jennings, Executive Vice President of ACE.  “A key tactic outlined in her book is to break oil’s monopoly at the pump, thus breaking its status as a strategic commodity. Fuel choice is the answer, which is why we are fighting hard for the consumer’s right to access flexible fuel vehicles and blender pumps.”

According to ACE, the type of choice at the pump that would benefit consumers are blender pumps. These pumps offer consumers the choice to fill up with E10 or E85 or various mid-level blends such as E30 or E40. However, to use mid-level or higher blends of ethanol today, a consumer must own a flexible fuel vehicle (FFV) and there is currently pending legislation that would require all vehicles sold in the U.S. to be FFVs.

“Our nation’s fuel system is built around petroleum, and if there’s any hope of achieving energy independence, we must start building some flexibility into the fuel system,” Jennings said. “Flexible fuel vehicles and blender pumps will open up the fuel system to competition and allow the consumer to choose, instead of living under the decades-old mandate for 90 percent petroleum in every gallon of gasoline.”

Discounted registration is available for attendees through July 23. Click here for online registration. To learn more about other topics and speakers at this year’s event, click here.

For the second year, the Legendary Buffalo Chip will be “Fueled With Pride” as the Renewable Fuels Association (RFA) continues their support as an honored sponsor to promote ethanol during the 70th Annual Sturgis Motorcycle Rally. The popular bikers event will take place August 6-14th in Sturgis, South Dakota.

The RFA will continue their partnership with the Legendary Buffalo Chip campgrounds by promoting the use of ethanol fuel through promotional materials, banners and merchandise, featuring the “Fueled with Pride” logo, to volunteers, staff and motorcycle enthusiasts from all over the country. The Legendary Buffalo Chip staff and vehicles will show their support by sporting “Ethanol: Fueled With Pride” decals as they travel throughout the grounds.

“This high-octane event is the perfect environment to let consumers know about the benefits of cleaner-burning, domestic ethanol fuel,” says Buffalo Chip Campground Sponsorship Director, Lon Nordbye. “The Chip chooses ethanol and we are proud to host the Renewable Fuels Association at the largest music festival for motorcycling in the world.”

On August 9th, RFA will sponsor the Third Annual Legends Ride, a charity event where over 500 riders including celebrities and world-class bike builders will join together for a 50-mile ride from historic Deadwood, SD to the Legendary Buffalo Chip. In addition, the ethanol sponsorship will be featured at Michael Lichter’s Tenth Annual Motorcycles as Art Exhibit, an internationally renowned exhibition that will showcase the works of the most influential master builders and artists in motorcycling.

“It is important for these riders to know that ethanol-blended fuels are a safe and effective alternative to petroleum that they can use in their motorcycle engines, along with every other vehicle they have at home,” said RFA Director of Market Development Robert White. “American heritage and the American love for riding runs deep here, it only makes sense to use an American fuel.”