Domestic Fuel

During a trip to San Diego I met with budding biodiesel company Buster Biofuels. The company is in the last phase of permitting and then will build a 2 million per year multi-feedstock biodiesel facility. According to Kristof Reiter of Reiter Scientific Consulting, who is working with Buster Biofuels, two of the most important elements for the company’s success are implementing state-of-the art multi-feedstock technologies to produce biodiesel, and quality.

Biodiesel quality has been a thorn in the side of the emerging biodiesel industry. Today, there are ASTM standards in place that must be met for a producer to be legally selling biodiesel fuel. However, there is a growing concern among the industry that these standards are not enough to ensure high-quality biodiesel. As a result, many companies are creating their own biodiesel brands that exceed current ASTM standards.

I asked Reiter why there are so many quality problems in the industry. “It’s my opinion that most people don’t understand how feedstock, blend ratio, and temperature affect fuel performance,” said Reiter. “Rather than requiring that fuel buyers learn chemistry, we should translate the chemistry into English.”

Reiter continued, “I believe that the existing ASTM standards are sufficient, and largely in line with international standards. Interpretation of the data associated with these standards often requires a chemistry degree and thus many buyers are forced to ‘hope for the best’ when they purchase fuel. Many of the ‘issues’ associated with biodiesel performance in the past could have been eliminated if this ‘technical data’ was translated into ‘plain English’ for the fuel blenders.”
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Duke Institute for Genome Sciences & Policy (IGSP) believes that it has altered a gene in perennial grasses to help them develop more robust roots speeding up the timeline for creating biofuels. According to Philip Benfey, the director of the IGSP Center for Systems Biology, says that perennial grasses for biofuels are advantageous because they can be harvested repeatedly. However, before this can happen, the roots need to be established and this can take up to two or three years. Therefore, he and his team began developing a method to improve root growth.

According to a university release, the research team took a directed genomic approach aimed at identifying genes that become active when cells stop dividing and start taking on the characteristics of the mature, adult cell they are to become.

“We systematically looked for those genes that come ‘on’ precisely when cells transition from proliferation to differentiation and then turn ‘off’ again just as quickly,” Benfey said.

The result of the research that focused on the plant Arabidopsis, and subsequent screening of mutant lines, turned up a single gene, which the researchers call UPBEAT1 (UPB1) that ultimately controls how fast the roots develop.

“It’s possible that by manipulating a single gene, you could get a plant with rapid growth,” Benfey said. He also noted that the prospect of enhancing growth by taking away a gene, rather than adding a gene, is appealing and added that their research suggests the plants are not growing at their full potential.

Along with this finding, the research also alluded to new ways they may be able to produce bigger and stronger plants that can sequester more carbon than other plants.

A proposed massive wind farm off the coast of Maryland got a big boost this week when the federal government issued both a Request for Interest (RFI) and a map of an offshore wind leasing area in federal waters just off Maryland’s Atlantic coast.

The Dispatch of Ocean City (MD) reports that Maryland is just the second state in the country to get the feds to make these commitments for an offshore wind project:

Essentially, the announcement this week means the federal government will solicit requests for interest from the private sector for leasing the vast area off the coast of Ocean City identified in the map, which was also issued this week. The western edge, or landward most edge, of the RFI area proposed for wind generation is roughly 10 miles from the Ocean City shoreline, while the eastern edge is approximately 27 miles from the coast.

“We’re certainly pleased about it,” he said. “We’re pleased the federal government has issued an RFI and we’re going to respond. We think it shows the mid-Atlantic states and the federal government are serious about supporting and moving forward with offshore wind farms off the mid-Atlantic coast. We’re eager to participate.”

Maryland officials want that state to generate 20 percent of its energy from renewable sources by 2022.

Republicans taking control of the U.S. House is good for the chances of the federal ethanol and biodiesel tax breaks seeing renewal … that’s according to a GOP member from Iowa.

AgriNews.com reports that U.S. Rep. Steve King also believes that this Congress will have a lot more members who are from agricultural areas … also a positive trend:

“That bodes well for the future of agriculture in the country,” King said. “We will have people in Congress who know something about agriculture.”

“I’ll be pushing hard on that,” King said.

We’ve heard lots of promises on this before. Let’s see what happens.

An American-based company that has land in the Philippines for jatropha plantations has announced it will try to acquire more land after the European Union has upped its targets for biodiesel sales.

Corpus Christi, Texas’ GreenGold Ray Energies has announced it will try to add another another 200,000 acres for jatropha cultivation by 2012 because current biodiesel production is not meeting world demand. The EU wants to increase its target of 10 percent of fuel sold at the pump be biodiesel by 2020:

“We are not surprised by the announcements by the the EU to increase the use of bio-diesel as it is mostly the case everywhere,” said Manolo Tecson, CEO of GreenGold Ray Energies Inc. “These new measures only provide additional comfort to our stakeholders, and shareholders,” further added Mr. Tecson.

This announcement comes on the heels of GreenGold Ray Energies’ five-year revenue forecast of $356 million, one of the biggest biodiesel production numbers out there.

According to a new report by researchers at the University of California, Davis, at the current pace of research and development, global oil supplies will run out 90 years before replacement technologies are ready. The study was based on stock market expectations and was published in the journal of Environmental Science & Technology. The paper, “Future Sustainability Forecasting by Exchange Markets,” was based on the theory that long-term investors are good predictors of whether and when new energy technologies will see full-scale adoption.

“Our results suggest it will take a long time before renewable replacement fuels can be self-sustaining, at least from a market perspective,” said study author Debbie Niemeier, a UC Davis professor of civil and environmental engineering.

Niemeier and co-author Nataliya Malyshkina, a UC Davis postdoctoral researcher, set out to create a new tool that would help policymakers set realistic targets for environmental sustainability and evaluate the progress made toward those goals. According to a university release, two key elements of the new theory are market capitalizations (based on stock share prices) and dividends of publicly owned oil companies and alternative-energy companies.

“Sophisticated investors tend to put considerable effort into collecting, processing and understanding information relevant to the future cash flows paid by securities,” said Malyshkina. “As a result, market forecasts of future events, representing consensus predictions of a large number of investors, tend to be relatively accurate.”

Niemeier also noted that the new study’s findings are a warning that current renewable-fuel targets are not ambitious enough to prevent harm to society, economic development and natural ecosystems. She concluded, “We need stronger policy impetus to push the development of these alternative replacement technologies along.”

A new solar farm in Taylorsville, NC is up and running and powering numerous homes and businesses in the community served by EnergyUnited. The solar project consists of 4,224 photovoltaic (PV) panels that can generate enough energy to power 150 homes. Unlike some solar systems that are designed using conventional fixed-tilt technologies, this project uses a tracking systems to follow the sun’s movement during the day, increasing the capture of sunlight, thusly increasing the amount of energy produced. It also reduces the amount of land needed for a solar project.

EnergyUnited provides electricity to residents of 20 counties in the state, and will buy all the energy produced from the one-megawatt (MW) solar farm. The company signed a 20-year power purchase agreement with DEGS, a division of Duke Energy. This is DEG’s third completed solar project with a 1-MW PV solar farms in Shelby, NC and a 14-MW facility in San Antonio, TX.

“At EnergyUnited, we’re committed to helping build a clean energy future for our members,” said Wayne Wilkins, CEO of the cooperative. “The solar farm, along with power produced at the Iredell County landfill, allows us to meet state requirements for renewable energy, while continuing to provide reliable energy services at competitive prices.”

North Carolina passed a Renewable Energy and Energy Efficiency Portfolio Standard that requires utilities to purchase 10 percent of its energy from renewable resources by 2018. As such, EnergyUnited will receive the associated renewable energy credits (RECs) generated by the solar project.

“Our goal is to help customers make strategic investments in renewable energy in a way that’s affordable and practical,” said Greg Wolf, DEGS senior vice president and head of its commercial solar business. “We’re pleased to add EnergyUnited to our growing list of quality customers.”

In addition to its renewable energy contracts, EnergyUnited is also researching potential investments in hydropower, wind power and biomass projects.

Sheetz has unveiled its “East-West Clean Fuel Corridor” across Pennsylvania this week. Now, motorists who are seeking out E85 don’t have to go far off the beaten path as they travel between Pittsburgh and Harrisburg. The company has opened six locations that now sell E85 and along with special signage to draw in customers, they are also offering motorists informational brochures about the fuel.

“We are taking this step to help our customers who want to use E85,” said Stan Sheetz, president and CEO of Sheetz, Inc. “They shouldn’t have to search for E85 locations as they travel. Our customers in Pittsburgh have had access to E85 at three locations since 2007. Now, commuters traveling east and west between Pittsburgh and Harrisburg will know exactly where they can refuel. Our goal is to expand the use of E85 into more locations to extend the corridor and help our customers.”

Sheetz continued, “With gasoline prices constantly fluctuating, it’s important that we provide our customers fuel options. Increasing the use of E-85 decreases our reliance on foreign oil while providing more opportunities for America’s corn farmers. It also reduces emissions and helps with cleaner air.”

You can visit the company’s website to see all of their E85 locations.

A large rendering company based in Texas has acquired another renderer that also produces biodiesel.

Darling International Inc. has moved to pick up Kentucky-based Griffin Industries Inc. This article from Biodiesel Magazine says the $840 million deal includes Griffin’s 12 rendering plants and one biodiesel production facility in Butler, Kentucky:

“Our combined companies will make us the leading independent renderer, bakery products recycler, used cooking oil recycler and grease trap maintenance provider in the United States,” said Darling Chairman and CEO Randall Stuewe. “Specifically, the combination makes sense because it provides for a more diversified supply of raw material, the leading position in bakery recycling business, completion of Darling’s national footprint, increased feedstock supply for our potential green diesel venture, and the ability to transfer best practices between two industry leaders.”

The green diesel project was initially announced by Darling in September 2009. At that time, the company said it was seeking to form a joint venture with a subsidiary of Valero Energy Corp. to develop a 135 MMgy renewable diesel facility adjacent to an existing Valero refinery. As announced in 2009, the facility would convert waste grease supplied by Darling into renewable diesel. Darling and Valero also announced the two companies are jointly seeking a loan guarantee from the U.S. DOE for the proposed project.

The Darling green diesel project with Valero is awaiting the U.S. Department of Energy’s approval. The Griffin-Darling merger should be complete by the middle of next month.

As the corn harvest is winding down through the Midwest, Project Liberty is just ramping up on its collection of light corn stover and corn cobs. This fall is the first major cellulosic feedstock harvest for the biorefinery that is expected to be in full production sometime in the first half of 2012. Recently, Project Liberty was highlighted during “Market to Market” on Iowa Public Television.

Once Project Liberty is successfully up and running, POET hopes to produce 3.5 billion gallons of cellulosic ethanol by 2022. As specified in the Renewable Fuels Standard (RFS2), the country needs to use 36 billion gallons of biofuels by 2022 with a minimum of 16 billion gallons coming from advanced biofuels and/or cellulosic ethanol. While the cellulosic numbers have not been met this year and are not expected to be met in 2011, things should rapidly change as cellulosic producers, such as POET, ramp up to commercial scale production levels.

Mike Roth, POET’s Director of Biomass stated in the piece, “It’s a brand new industry within ethanol, which is relatively new, being about 20 years old. We still call ethanol a very immature industry. There is still a lot to learn and a lot of efficiencies to be gained. And this is adding a whole new component to it that really changes the game.”

Ultimately the technology developed by POET is designed to be “bolted-on” to current corn-ethanol facilities, eliminating the need to build new biorefineries to meet the country’s biofuels demands.

You can follow Project Liberty’s progress here.

Many reports in the past year have come out and determined that alternative energy such as wind and solar will have a major impact by 2030. However, in a new report released today, the Boston Consulting Group (BCG) says that the impact could happen sooner than others predict. “What’s Next for Alternative Energy?” examines seven influential and promising alternative energy technologies including advanced biofuels, electric vehicles (EVs), concentrated solar power (CSP), solar photovoltaic (PV), onshore and offshore wind, and clean coal through carbon capture and sequestration (CCS).

The success of each alt energy was determined based on three key issues:

• • Can it achieve cost competitiveness with conventional energy by 2020 and be economically viable without subsidies?
• • Can it overcome barriers to rapid adoption once cost competitive?
• • Can it reach penetration levels by 2025 that disrupt the status quo?

The report contains many key findings but several of note. In particular, as costs rapidly decrease for the production of advanced biofuels, CSP and solar PV, they will become cost competitive within the next five to ten years. In addition, onshore wind power will see steady adoption and continued growth but still faces a barrier with energy storage limitations and cost. Conversely the report determined that offshore wind will continue to struggle to move beyond subsidy-driven growth.

Other interesting findings include the conclusion that EVs will see steady adoption and will become economically feasible by 2020, and clean coal through CCS will have very slow adoption and will not be viable for a decade or more.

“There is no question that conventional energy sources will constitute the bulk of the world’s energy for at least the next couple of decades,” said Balu Balagopal, a Houston-based senior partner at BCG and a coauthor of the report. “But a few of these green-energy technologies will make their presence felt very likely within the next few years.”Their costs are falling quickly and significantly, pushing them closer to where they can compete on price—without subsidies—against fossil-fuel-based sources.”

Balagopal continued by explaining that as they become more cost-competitive, adoption will be constrained more by barriers such as the need to develop infrastructure. “However, we believe these barriers will likely prove surmountable,” concluded Balagopal.

Traders of ethanol and biodiesel have a new website to exchange the green fuels.

This article from Ethanol Producer Magazine says the online trading platform from U.S. Biofuels Exchange, www.us-bx.com, uses “cloud computing” and requires no software for purchase, downloading or installation to post, buy, sell and make offers on biofuels for sale or biofuels wanted:

“We offer biofuels producers, brokers, blenders, distributors, importers, exporters and marketers the ability to anonymously buy and sell ethanol and biodiesel as well as the ability to make, receive and choose between multiple offers on listings,” said James Kaufman, US-BX vice president.

Having a web-based system moves biofuels trading from small regional deals to much greater possibilities. For example, it will help connect producers with overseas buyers, particularly in China. “This opens up the capacity and availability across the country and the world,” he said.

The article says US-BX has already signed up more than a dozen companies since opening for business at the end of October. The site is offering free trades through January 1st.

Today, the International Energy Agency (IEA) released its 2010 Edition of the World Energy Outlook in which it reported that global fossil-fuel subsidies have amounted to more than US $312 billion in 2009. The number includes subsidies to fossil fuels used in final consumption and to fossil fuel inputs to power generation. However, the report did not include direct producer subsidies that topped US $100 billion last year according to the Global Renewable Fuels Alliance (GRFA).

The IEA report noted that the $312 billion was down from US $558 billion in 2008, most notably because oil prices declined in 2009. Conversely, if experts are correct, the subsidies should climb again in 2010 with the increase in oil prices.

“As we strive to develop alternatives to oil we must recognize that we are not competing on a level playing field,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance. “Massive multi-billion dollar oil subsides are a serious obstacle to the development of cleaner greener alternatives. Oil has a huge competitive advantage financed by global taxpayers.”

Next week the G20 will meet in Korea and the issue of oil subsidies is on the agenda following a commitment made at the G20 meeting in Pittsburg in September 2009. The EIA has been optimistic that they can spearhead a campaign to reduce global oil subsidies and will be presenting its case during the summit.

“Despite the IEA’s optimism that there is momentum for reducing subsidies, not one country has eliminated an oil subsidy program since signing on to the pledge in 2009,” said Baker.

In addition to the consumption subsidies, several countries continue to provide domestic producer subsidies to oil companies at alarming rates. According to a November 2010 study done by Earth Track, many countries continue to provide direct producer subsidies to oil companies including:

• • Canada provides over US $2 billion per year to oil companies
• • U.S. producer subsidies reached US  $52 billion in 2009
• • European Union provided US $8 billion in subsidies to oil companies in 2009

Baker concluded, “It is time for the G20 to show leadership and reverse this practice of never ending subsidies to big oil. It is time to move beyond oil to a world with sustainable alternatives to crude oil such as biofuels and other renewable forms of energy.”

Asheville, North Carolina has become the first paratransit program in the state to offer fleet managers AutoGas, or propane fuel. Today, the Buncombe County Commissioners Carol Peterson and Holly Jones, held an event for the local community to learn about the new alternative fuel initiative known as the Mountain Mobility’s AutoGas vehicle program.

“Mountain Mobility is so appreciative of all the people and organizations which helped to make this program possible, and would like to extend a special thanks to the French Broad River MPO and the North Carolina Department of Transportation for awarding the ARRA funds that subsidized this program,” said Denise Braine of Mountain Mobility.

The program was funded through the American Recovery and Reinvestment Act and with the funds, Mountain Mobility has converted 10 vehicles to run on propane AutoGas. The event took place at German Motor Werks, the local AutoGas fueling station and vehicle conversion center.

“The conversions made possible through this program will mean that nearly a quarter of Mountain Mobility’s 42 fleet vehicles are now running on clean and cost effective AutoGas,” Commissioner Holly Jones, points out. “This kind of momentum is critical to driving continued sustainable development at the local and state levels.”

Steve Whaley of Alliance AutoGas noted that the Autogas conversion technology allows the vehicles to run on either propane or gas. He concluded, “It is exciting to have local, government-run organizations like Mountain Mobility setting the pace for alternative fuel development in their communities.”

According to a new study released this week, the European Union (EU) plans to increase its use of biofuels over the next 10 years and it will require 69,000 square kilometers of new land causing climate change to become worse. “Driving to Destruction” was commissioned by a coalition of environmental and development NGOs and the study reports that by 2020, 90 percent of the 9.5 percent of biofuels will come from food crops.

“Biofuels are not a climate-friendly solution to our energy needs. The EU plans effectively give companies a blank cheque to continue grabbing land from the world’s poor by growing biofuels that fill our cars rather than their stomachs,” said Laura Sullivan, ActionAid’s European Policy and Campaigns Manager. “Europe’s energy policies are putting millions of people in danger and threaten Africa’s fragile food security.”

The global biofuels community is not taking the report lying down. “As a matter of record, our industry has always welcomed the debate about biofuels sustainability in large part because the alternative – more oil – is by definition unsustainable,” said Bliss Baker with the Global Renewable Fuels Alliance (GRFA). “However, NGO’s that use this debate as an opportunity to stoke fears and sell memberships in their organizations do a disservice to us all.”

According to the report, an area over twice the size of Belgium will need to be converted into biofuels plantations putting poor communities in danger if European countries use industrial biofuels to meet their renewable energy targets by 2020. Even more, the report claims that when indirect land use change is taken into account, a highly contested theory, biofuels will emit an extra 27-56 million tonnes of greenhouse gas emissions per year – the equivalent to an extra 12 to 26 million cars on Europe’s roads by 2020. Lastly, the report states that under the plans, 5 countries will be responsible for three quarters of all extra emissions. The UK, Spain, Germany, Italy, and France are projected to produce the most extra greenhouse gas emissions from biofuels.

Baker continued, “The research is chalk full of allegations disguised as facts. The report repeatedly makes statements as if they are facts such as ‘…the EU plans WILL result in the conversion of up to 69,000 sq. km of land for the use of biofuels.’ Sounds ominous but for the one word “upto.” It could be 1 square kilometer that gets converted. The point is they don’t know how many kilometres will be converted (if any) and predicting it with any degree of confidence has yet to be demonstrated anywhere.”
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