Domestic Fuel

It is the first and only domestically produced advanced biofuel produced in the U.S., so it’s no wonder biodiesel is being highlighted during October, Energy Awareness Month.

The green fuel’s biggest advocate, the National Biodiesel Board (NBB), is taking this month to draw attention to biodiesel and its role in “POWERING AMERICA: We’re On Target,” the theme for the next 31 days:

The theme depicts how, across the nation, Federal agencies continue to zero in on energy targets to:

Biodiesel is the only domestically produced, advanced biofuel available in the U.S. It also has the highest energy balance of any commercially available fuel in the U.S. For every unit of energy it takes to make biodiesel, 4.5 units of energy are returned.

Missouri is considered a leader in renewable energy and a natural home for the NBB. The Department of Energy’s Clean Cities program … dedicated to reducing the amount of non-renewable petroleum … says the biodiesel industry really practices what it preaches, as does the NBB itself. A few years ago, the Biodiesel Board renovated an old building in Jefferson City putting in automatic lighting, high efficiency appliances and reusable dishes. The building makes the maximum use of natural light and even uses recycled carpet and nontoxic paint … a truly green building for a truly green fuel.

The Akron Metro Regional Transit Authority (RTA) unveiled the largest solar rooftop array in the state of Ohio today. RTA’s new solar rooftop on the RTA bus garages at METRO’s headquarters is rated at 488 kilowatts DC, and is expected to produce around 486,760 kilowatt hours of solar power a year. The $2.5 million project was installed by Ohio-based Third Sun Solar of Ohio and the array is comprised of 2076 of Sharp 235-watt solar modules. A portion of the cost of the project was provided by funding through the American Recovery and Reinvestment Act (ARRA).

“In collaboration with Third Sun Solar, we are so pleased to be helping Akron Metro reach its goals of sustainability by harnessing the power of solar energy.” said Eric Hafter, senior vice president, Sharp Solar Energy Solutions Group. “This project contributes to the same mission as Akron Metro in helping reduce the use of fossil fuels. Akron Metro reduces emissions by transporting people using efficient public transportation and now adds emission-free power to provide energy for their operations.”

Sharp has also been selected to provide solar panels for an additional phase of the project which will begin construction in late 2010. This phase, a second roof array on the same complex, will supply another 355 kilowatts DC and utilize an additional 1477 Sharp panels and will also be installed by Third Sun Solar. Sharp’s solar panels are designed to withstand rigorous operating conditions, while offering high power output per square foot of solar array.

“Taking public transportation has always been a great way to reduce your personal carbon footprint. But Akron Metro goes way beyond encouraging Akron residents to leave their cars at home,” said Robert Pfaff, Executive Director at Akron Metro. “In addition to solar power, we also use diesel/electric hybrid and natural gas buses in our fleet, and we recycle rainwater for use in landscaping and restrooms. We’re so proud that Ohio’s largest rooftop solar array is right here in Akron,” he said.

Using calculations from the Environmental Protection Agency (EPA), the new project will prevent 350 metric tons of CO2 emissions, the equivalent of 39,322 gallons of gasoline.

“We are pleased to help Akron Metro further their commitment to protecting our natural resources by investing in the energy solutions of tomorrow,” said Michelle Greenfield, CEO at Third Sun Solar. “Investments like this one in alternative energy solutions are helping drive the transformation of Ohio’s economy to clean, renewable energy and creating new green jobs,” she said. Twenty-nine green jobs were created or retained in Ohio as part of the Akron Metro solar project.

Back in August, dozens of corn growers who sold corn to bankrupt VeraSun plants across the country in 2008 received letters asking them to repay the money. Should the farmer not comply, the letters threatened to take legal action but stipulated that they would accept payment to 80 percent of what the farmer received for their corn sales to VeraSun. The deadline for response was today and with the help of the National Corn Growers Association along with state corn groups, farmers were encouraged to tap into legal resources prior to responding.

Today, these same farmers received good news – attorneys are dropping their questionable claims for payment.

“This is great news for farmers at a time when we need to focus on bringing in our crops,” said National Corn Growers Association (NCGA) President Darrin Ihnen. “We’re glad the lawyers saw the light and realized they had no legal justification to go after us. We had an excellent team working on this to make sure we had the right information, and to present our case.”

NCGA explained that because of bankruptcy law, attorneys representing VeraSun creditors were able to seek repayment from farmers and others who received money from VeraSun within 90 days prior to the bankruptcy filing. Ironically, the farmers who were asked to repay the money were not “given back their corn”.

In strongly worded correspondence sent Tuesday to the law firms demanding payment, an attorney assisting NCGA insisted that the lawyers withdraw their demands.

“We believe that many of the foregoing demands were made without any legal and factual foundation and, as such, constitute an impermissible effort to collect alleged debts that are clearly not owing,” wrote attorney David Lander of Thompson Coburn. “They appear to have been made without the inquiry reasonable under the circumstances. Moreover, we believe that the claims asserted in the vast bulk of these letters are not warranted by existing law or a non-frivolous argument for the extension, modification or reversal of existing law or the establishment of new law.”

Time is running out for exhibitors to take advantage of the early bird discount to the upcoming National Biodiesel Conference & Expo, February 6-9, 2011 in Phoenix, Arizona. Our friends at the National Biodiesel Board have sent out a friendly reminder that you can save $200 on your booth space reservation if you book it by this coming Tuesday, Oct. 5, 2010:

The annual National Biodiesel Conference & Expo is the only event that gathers biodiesel decision-makers from all around the United States and the world. Opportunities abound for attendees and exhibitors to network, connect and learn. This event will explore the topics of governmental policy, technical issues and marketing trends in the biodiesel industry.

2010 has been an extremely tough time for our industry. The uncertainty surrounding the biodiesel tax credit and the implementation of the RFS-2 has made 2010 one of the most challenging years in the industry’s past. Our hope is that this conference will be the springboard to greater opportunities for our industry. 2011 is shaping up to be a banner year for biodiesel production and industry growth.

NBB officials point out that conference attendees are the high-level decision-makers in their respective areas. You won’t want to miss this true “meeting of the minds!”

Attendee registration is coming soon. For more information on getting your booth, click on the National Biodiesel Conference & Expo website. See you in Phoenix!

A key vote in the U.S. House of Representatives has moved forward a measure that will help the nation’s algae biofuels industry.

Passage of H.R. 4168, the Algae-based Renewable Fuel Promotion Act, garnered praise from Sapphire Energy for two key Congressmen, Reps. Harry Teague (D-NM) and Brian Bilbray (R-CA) whose bi-partisan support lead to the bill’s passage:

Congress took the extraordinary action this week to give algae-based fuel technology federal incentives similar to those for other biofuels, leveling the playing field for this promising technology. This move will serve to hasten the pace of development of these fuels, addressing our nation’s energy independence goals sooner.

”The many tireless months of effort made by Reps. Teague and Bilbray show their belief that algae-based fuels, like our Green Crude, have a crucial role in solving the nation’s and the world’s crippling energy challenge,” says Jason Pyle, CEO, Sapphire Energy. “These policies are essential to truly grow green fuel at scale; we need the same tax structure that oil and gas get today. Passage of this bill is the first step in that direction.”

The bill now moves to the Senate.

The U.S. Navy will be hosting this year’s Navy Energy Forum, Oct. 12-13 at the Ronald Reagan Building and International Trade Center in Washington, D.C.

This yearly forum, this time entitled “Seapower Repowered: Energy as a Force Multiplier and Strategic Resource,” brings military, government, and industry leaders to talk about energy and the warfighter:

Distinguished Navy speakers include the Honorable Ray Mabus, Secretary of the Navy, and Admiral Gary Roughead, Chief of Naval Operations. Guest speakers include Former Senator John Warner (R-Va), Dr. George Friedman, international affairs expert and chief executive officer of STRATFOR, and Dr. Daniel Yergin, chairman of Cambridge Energy Research Associates and Pulitzer Prize winner for his bestseller, “The Prize.”

Building on a year of progress toward the Secretary of the Navy’s energy goals announced in fall 2009, participants will focus on policies, partnerships, technologies, and culture change needed to move these goals forward. Issues such as reducing lifecycle energy costs, grid security, and alternative fuels will be addressed. The forum will also address the “Navy Energy Vision for the 21st Century,” which identifies the Navy’s way forward for increasing energy security.

Navy officials say energy is a national security issue.

More information about the conference is available at http://www.ndia.org/meetings/1600/Pages/default.aspx.

The state of Arizona is providing $2 million to support research and development of alternative fuels, especially the development of algae into biofuels.

KPHO-TV in Phoenix reports Gov. Jan Brewer made the announcement during this week’s Algal Biomass Organization’s national conference in Phoenix:

“Our state has the potential to be a national and global leader in algae research and biotechnology, reducing America’s dependence on fossil fuel while increasing opportunities in a new industry that will create promising new jobs for Arizonans,” Brewer said.

“This infusion of funding to the AzCATI will go a long way toward moving Arizona into the forefront for ‘green’ technologies research and development, eventually bringing these products to market,” said William C. Harris, president and CEO of Science Foundation Arizona. “Arizona has the potential to become the hub of all sustainable industries, particularly when there is this type of public support.”

The article goes on to say that work at Arizona State University has focused on developing new methods to extract oil-rich algae strains and turn it into biodiesel.

It won’t be long before Senators and Representatives go back home to do what they seem to do best, or at least, the most: work on getting re-elected. But before they head out of D.C. for the break (right now, scheduled for October 8) before the November elections, the National Biodiesel Board (NBB) and the Advanced Biofuels Association (AFBA) are asking them to do some real work and extend the biodiesel, renewable diesel and alternative fuels tax credits, according to this article in Biodiesel Magazine:

In a letter addressed to Senate Majority Leader Harry Reid, D-Nev., Senate Committee on Finance Chairman Max Baucus, D-Mont., Republican Leader Mitch McConnell, R-Ky., and ranking member of the Committee on Finance Sen. Charles Grassley, R-Iowa, the two advanced biofuel groups noted the “urgent” and “noncontroversial” need to reinstate the incentives. The letter states, “We respectively ask that you expeditiously act to retroactively extend the biodiesel, renewable diesel and alternate fuel tax incentive through 2011 prior to adjourning for November elections.”

“Before the Senate goes home to campaign,” Manning Feraci, vice president of federal affairs for the NBB said, “it should do the right thing and seamlessly reinstate the biodiesel tax incentive.” The joint-effort between the NBB and the ABFA is relatively new, but Feraci noted that both “share the opinion that Congress should pass an extension of these biofuel incentives before they adjourn for the year.” Passing a retroactive tax incentive would not only restore several jobs lost from the expiration of the tax incentive, but also allow entrepreneurs and producers the ability to access capital needed to produce advanced biofuels, the letter also stated.

ABFA officials urged Congress to act soon and not put the country’s energy and economic security on hold.

California-based OriginOil, Inc. has launched a new service that lends the company’s expertise to other potential algae oil producers.

The company announced its professional “expert services” at the recent National Algae Association meeting in Houston, Texas:

“For the past three years, hundreds of large companies, entrepreneurs, development agencies and investors have asked for our help in launching their algae programs,” said OriginOil CEO, Riggs Eckelberry. “With our own products now hitting the market, our veterans in production, processing and commercialization can help this global industry achieve its very real potential to overtake petroleum.”

“There’s a recognition by OriginOil that there are certain products and services that the algae industry needs,” commented Doug DiLillo, a marketer of industrial bio technology at Pall Corporation (NYSE:PLL). “To take the cumulative knowledge that the company and its members have, and then to use that knowledge to help guide those in the industry that have projects, is a very worthwhile way to position the company.”

OriginOil has several new executives hired to handle the new business. The company will be offering several services, from initial feasibility studies, through full launch planning, to commercialization help for existing algae players.

Verenium Corporation has launched a new enzyme for fuel ethanol production called the DELTAZYM(R) GA L-E5. The new enzyme has demonstrated high ethanol yields at industrial scale using multiple substrates including corn, milo, barley, wheat, and cassava.

“Verenium is pleased to be able to enhance our starch processing product offering with this best-in-class glucoamylase enzyme for fuel ethanol production,” said Janet Roemer, Verenium’s President and Chief Operating Officer. “Customers using both Verenium’s Fuelzyme(R) alpha-amylase and DELTAZYM(R) GA L-E5 have reported increased ethanol yields due to demonstrated synergies between the two enzyme products providing fuel ethanol processing plants with superior cost-performance benefits.”

Verenium estimates the addressable global market for DELTAZYM(R) GA L-E5 for fuel ethanol production to be approximately $200 million annually.

Indiana’s Department of Transportation has awarded Alliance AutoGas a $3.2 million contract to install the nation’s largest single-state propane AutoGas fueling network. Once the fueling network is complete, Indiana will have 115 AutoGas fueling stations. According to the company, this network is the first of its kind and will provide propane fuel to both private and public fleet vehicles.

Prior to be awarded this state contract, Alliance AutoGas has already been awarded $10.1 million from the U.S. Department of Energy’s ARRA fund and a portion of these funds will also be allocated to building out Indiana’s propane fueling infrastructure. Upon completion of the network, there will be a propane fueling station every 30 miles throughout the state.

“We are honored to receive this award and we consider it a vote of confidence from the Indiana state government,” says Henry Bodie, Alliance AutoGas vice president of business development. “This DOE-funded project reasserts that AutoGas is a critical piece of the U.S. energy equation.”

According to the company, Alliance AutoGas founding partners will facilitate the development and installation of the expansive statewide infrastructure, as well as provide state-of-the-art AutoGas dispensing and fueling equipment. “We’re proud of the products and services that we offer and our ability to offer them cost effectively,” says Bodie.

As part of this program, Indiana will also convert 227 Ford vans and trucks to run on AutoGas. American Alternative Fuel, an Alliance AutoGas founding partner, will provide equipment for these conversions, marking another piece of this statewide project that has been awarded to Alliance AutoGas.

Amyris, Inc. has concluded a successful IPO with shares changing hands at $16.55 after setting the initial offering at $16 per share, below its estimated price range of $16-18 per share. The company went public with a $650 market cap. With 5.3 million shares sold during the IPO, $85 million was raised with underwriters Morgan Stanley, J.P. Morgan and Goldman Sach. Amyris is now traded on the Nasdaq under AMRS. Upon conclusion of the day’s trading, there were still 40.4 million shares outstanding.

According to Scott Sweet, an IPO analyst for IPO Boutique, it is not unusual for a deal to price below its estimated range. “In the case of Amyris, Morgan Stanley had orders below the prevailing range of $18-$20 (and) they chose to do the right thing and price where the deal worked at a discount,” Sweet said in an article in Market Watch. “I wish this was more the norm than the exception.”

Company CEO John Melo said in an interview at the Nasdaq with Market Watch, that the company has a diverse portfolio including developing yeast products for biotechnology, agriculture and fuel. The goal is for their yeast products to replace petrochemicals used in a multitude of products. And similar to many companies, Amyris has invested in Brazil and is researching the use of sugar cane to help develop new products. The company has partnered with Sao Martinho, one of Brazil’s largest sugar cane producers.

“Brazil is like the Saudi Arabia of biomass,” said Melo.

The Market Watch article reported that the money raised through the IPO is, “slated for several projects including the construction of engineering service capabilities to support sugar and ethanol mill conversion to integrate its technology.”

Want to know where are the biorefineries in the U.S. are located? There’s an app for that. The National Renewable Energy Lab (NREL) has released a new bioenergy mapping portal, BioEnergy Atlas, that identifies biomass feedstocks, then overlays that information with the ethanol and biodiesel facilities both on and off-line. You can also see map information for transportation infrastructure, power plants, fueling stations, and more. The tools are coined BioPower Atlas and BioFuels Atlas.

The portal was created with funding help from the Environmental Protection Agency’s Blue Skyways Collaborative and the Department of Energy’s Biomass Program. Not only is the map able to identify current biorefinery locations, but can also show where copious amounts of biomass are available for harvest without plants located in the region. Perfect for those looking for areas of untapped energy potential.

According to NREL, BioEnergy Atlas is targeted to a multitude of users including government and state agencies, universities, the petroleum and pipeline industries, research institutions, vehicle manufacturers, investment firms, GIS companies, private citizens, and media.

Micro Bird has launched the new G5, a ROUSH liquid-propane powered E-450 Dual Rear Wheel (DRW) Cutaway vehicle, during BusCon, the largest show dedicated to the bus industry. During the show, the Micro Bird G5 will be on display in the Propane Education and Research Council (PERC) booth at the Navy Pier in Chicago.

The new bus has a 25 passenger capacity, uses the Ford 6.8L, V-10 engine converted to run on liquid propane, sports a fuel capacity of 43 gallons and depending on driving conditions, has a range of 320 miles. Vehicles using propane have no additional weight added to the vehicle; therefore, stopping distance and brake wear will be similar to a traditional gasoline or diesel fueled vehicle. In addition, propane fueled vehicles have no loss of horsepower or torque and emit lower emissions than traditional fuels.

“This product delivers on a need that the shuttle bus, school bus and delivery markets have been asking for. Through the use of propane, fleets will significantly reduce their operating costs as well as the carbon footprint for those that adopt this liquid propane technology without compromising any of the key vehicle attributes such as horsepower, torque, weight, or the space available for passengers or cargo,” said Todd Mouw, ROUSH vice-president of sales and marketing.

Mouw continued, “We are excited to partner with Micro Bird on a Class A school bus that utilizes this Dual Rear Wheel and liquid propane injection conversion system. Nothing speaks louder about safety and reduced emissions than putting children, our most precious cargo, in a propane-powered vehicle like the Micro Bird G5.”

The Micro Bird G5 will be available nationwide in the first quarter of 2011 and will be sold exclusively through Blue Bird dealers.

After having a couple of tough years, biodiesel could be poised for a bounce back … even if the $1-a-gallon federal tax credit is not renewed.

This article from Biofuels Digest says another federal program, the Renewable Fuels Standard, and technology from Iowa-based Renewable Energy Group are contributing to a revival of the biodiesel industry in the U.S.:

Optimism began to return this year when the EPA finally issued rules for the revised Renewable Fuel Standard, which called for a rapid expansion in biodiesel blending, and also qualified biodiesel as an advanced biofuel, since it easily satisfied the 50 percent emissions improvement required under RFS2.

Not every gallon can come back. Estimates range from 750 million to 1.5 billion gallons in terms of the actual potential to revive production capacity in the US. With the delays in cellulosic ethanol, there is the chance that even more production capacity from biodiesel will be called for as the RFS bites deeper and deeper into the US fuel supply over the next ten years.

The article goes on to talk about how REG has been buying up idled biodiesel plants, building up the company’s capacity. In addition, REG has been using high FFA stripping technology, which allows the company to take in low-cost, high-volume feedstocks that are usually tough to convert into biodiesel because of the trouble stripping out the free fatty acids (FFA) that are the root of the problem. The oils from this process are homogenized and turned into biodiesel.

In addition, the EPA says as long as there is sufficient biodiesel production capacity in the country, the overall RFS mandate will stay in place, even if cellulosic ethanol or other advanced biofuels have trouble getting financing and getting off the ground.