Domestic Fuel

Researchers at the University of Alabama in Huntsville have found a strain of bacteria that could turn glycerol, a by-product of biodiesel production, into another alternative fuel … butanol.

This story from the school’s news website says the research is being done by a graduate student with funding from the National Science Foundation:

Disposing of glycerol has been a problem for the biodiesel industry, according to Keerthi Venkataramanan, a student in UAHuntsville’s biotechnology Ph.D. program. “Many companies have had problems disposing of it. The glycerol you get as a byproduct isn’t pure, so it can’t be used in cosmetics or animal feeds. And purifying it costs three times as much as the glycerol is worth.”

“Butanol is a big alcohol molecule, twice as big as ethanol,” Venkataramanan said. “You can use it as an industrial solvent and it can be used in cars, replacing gasoline with no modifications. It doesn’t have some of the problems you have with ethanol, such as rapid evaporation. And ethanol is a two-carbon molecule, but butanol is a four-carbon molecule so its energy value is much higher. In fact, there are plans to use it for jet fuel.

The article says that the bacteria also turn glycerin into a chemical used to make plastics. Plus, since it is non-pathogenic, the bacteria are better for the environment.

Not everyone is happy with the latest E15 ruling from the Environmental Protection Agency (EPA). Last Friday, the EPA ruled to allow consumers who drive conventional vehicles or light duty trucks manufactured between 2001-2006 to use E15, a blend of 15 percent ethanol, 85 percent gasoline. In October of 2010, the EPA allowed the use of E15 in the model year 2007 or newer.

One group who is disappointed with the decision is the National Pork Producers Council (NPPC). “It’s very disappointing that the administration made this decision given the rising price of corn and the lower estimate for this year’s corn harvest that recently was announced,” said Randy Spronk, a hog and crop farmer from Edgerton, Minn., who serves on NPPC’s board of directors and is chairman of the organization’s Environment Committee.

Last week, the USDA announced the final corn harvest numbers, down 5 percent from previous estimates. The report states that corn stockpiles were the lowest on record and that the national “carryover is now expected to be less than three weeks’ worth. The ethanol industry found that the lower number would not negatively affect any industries that use corn.

NPPC “strongly opposes” raising the blend rate because they claim it will put further upward pressure on corn supplies, increasing pork producers’ cost of production and reduce supplies. The ethanol industry denies that this will be a result of allowing E15. NPPC is one of several livestock groups that filed a lawsuit in federal court last November against the EPA over the E15 decision.
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Researchers at Iowa State University are developing polymers made from vegetable oils that repair themselves.

This press release from the school says Michael Kessler, an Iowa State University professor and an associate of the U.S. Department of Energy’s Ames Laboratory, is working on the technology:

“If successful, the results of this research will provide biorenewable alternatives to petroleum-based resins,” says a summary of Kessler’s research project. Successfully developing the concept “should have a huge impact economically and environmentally.”

The technology has evolved into a system that embeds catalysts and microcapsules containing a liquid healing agent within a composite. As cracks develop in the composite, they rupture the microcapsules and release the healing agent. The healing agent contacts the catalyst and reacts by forming 3-D polymer chains that fill the cracks. That increases material lifetimes and reduces maintenance.

Kessler has collaborated with fellow Iowa State and Ames Laboratory researcher Richard Larock, who has invented and patented a process for producing various bioplastics from inexpensive natural oils, which make up 40 percent to 80 percent of the plastics.

As Chinese President Hu Jintao wraps up his visit to the United States, a new report details how America can use biofuels to compete in the alternative energy field for vehicles.

This article on CNET.com says the Accenture report, entitled “The US and China: The Race to Disruptive Transport Technologies,” says the Chinese have a decided edge in government commitment to electric vehicles ($10 billion over the next 10 years to the EV industry alone) and rich deposits of lithium, a key ingredient in EV batteries. But American biofuels could be the great equalizer:

So what does the U.S. have to compete against China’s lithium, money, and government control? To put it succinctly: brainpower, strong intellectual property laws, and agricultural expertise.

The U.S. also happens to be the largest producer of corn in the world with an estimated 30 percent of its yield going into ethanol production. Yield improvements and domestic surpluses are even expected to rise in coming years due to recent agricultural innovations.

The article goes on to say that the U.S. is more diverse in its biofuels package, including biodiesel made from diverse feedstocks, such as algae. China seems to be focusing on cellulosic ethanol to replace gasoline.

This week I took a stab at learning a little about economics and its role in the various environmental issues including global climate change, air pollution and over fishing. “What Environmentalists Need to Know About Economics,” by Jason Scorse, is a book that, using various economic theories, analyzes the three most important sources of environmental problems: market failure, the tragedy of the commons, and the underprovisioning of public goods.

One of the things that I found interesting was that Scorse explained that one of the first principles of free markets is that for them to work effectively, the full costs of an activity must be borne by the involved parties. For example, many types of air and water pollutants exact a significant price on human health and or degrade ecoysytems, but these costs are not factored in the cost of production or at the consumer level. These costs are known as externalities and these lead to market failure. This is a common argument you hear when people talk about the “true cost of oil.”

Scorse notes that if we lived in a world where prices fully captured environmental costs, our entire economies would look vastly different. He writes, “…we would have different modes of transportation, different layouts for our cities and towns, different dietary habits, and consumer goods would likely contain much less toxic material. Prices of environmentally harmful goods would rise and much more R&D would go into alternatives, thereby decreasing their price. In such a world society’s resources would be invested in those things which bring the greatest social value.”

In a section of the book, Scorse discusses in detail how two current proposed U.S. environmentally polices would work: cap and trade or an environmental tax. While people are inherently opposed to either scenario, he does a great job explaining how each scenario would work, the pros and cons, and the possible outcomes of each. I should note that cap and trade is already at work in the utility industry so the mechanism is already in place for cap and trade for GHG emissions, or as I like to call it, crap and raid.
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Growth Energy CEO Tom Buis says the decision by EPA today to allow up to 15% ethanol blends in 2001 and newer vehicles “knocks a bigger hole” in the blend wall, but they’re not going to give up until they completely “tear down that blend wall.”

Buis held a telephone press conference today immediately after the announcement was made, along with Growth Energy co-chairman Wesley Clark, Todd Becker of Green Plains Renewable Energy (GPRE), Kent Satrang of Petro Serve USA and Rob Sjkonsberg of POET.

Clark expressed his appreciation to the administration for the decision. “I think they made a very wise decision in moving to bring this extra fleet of cars in,” said Clark. “It’s a huge step forward for national security.”

Addressing concerns about increasing amounts of corn used to make ethanol, Todd Becker with the Nebraska-based GPRE says the industry is getting more ethanol per bushel of corn. “A small improvement in yield in 2011, we believe, will add an additional 100-150 million bushels of corn to the carry-out, more than is expected today.”

Fuel retailer Satrang says they are ready to start using E15 as soon as possible. “This is great and significant news for America’s gas stations,” he said. “We intend to put E15 in 8 of our 20 store chains as soon as the required labels are available.” He says those are stores that have blender pumps already.

Listen to the Growth Energy press conference here. Growth Energy on New E15 Decision

The Renewable Fuels Association (RFA) is pleased with the Environmental Protection Agency decision to allow the use of up to 15 percent ethanol blended gasoline in vehicles 2001 and newer, but says more can and should be done to allow E15 in all cars and pickups.

“EPA’s decision today is a sound one, but it doesn’t address the issues that still remain regarding a segmented market place and the introduction of a new fuel,” said RFA President Bob Dinneen. “The RFA will continue to work with EPA and other regulatory bodies to expand ethanol use beyond even 15%. Simultaneously, we will continue our dialogue with lawmakers to develop and implement sound, tax-based policies that provide the proper incentives to grow ethanol use across a variety of blending levels.”

In an interview with Domestic Fuel this morning, Dinneen also speculated on when E15 might actually be commercially available. “I think you’ll see it in 2011 on a limited basis,” he said, mainly in states where there are not as many regulatory barriers. “Clearly there are going to be some marketers who are going to want to give consumers this important choice.”

As to those groups who are opposed to even limited E15 approval, Dinneen says, “I think the same folks that filed a lawsuit to stop the use of E15 in 2007 and newer vehicles will most certainly object to this ruling as well and may likely file more lawsuits. I don’t think they will be successful. I think EPA is on solid legal and technical grounds.”

Listen to or download my interview with Dinneen here: Bob Dinneen on New E15 Decision

Ethanol industry groups are pleased that the Environmental Protection Agency has decided that blends of 15% ethanol are safe for use in all cars and pickups built in 2001 and later.

Growth Energy filed the original waiver back in 2009 to raise the regulatory cap on the ethanol blend from 10 percent to 15 percent to create more jobs and increase the nation’s energy security.

“This is a bold move forward, changing America’s energy future for the better,” said Tom Buis, CEO of Growth Energy. “Increased use of ethanol will strengthen our energy security, create U.S. jobs, and improve the environment by displacing conventional gasoline with a low-carbon fuel.” According to the organization, which is holding a press conference on the announcement, a full move to E15 creates a bigger market for American ethanol that could help create as many as 136,000 new jobs in the United States and eliminate as much as 8 million metric tons of GHG emissions from the air in a year — the equivalent of taking 1.35 million vehicles off the road.

“Today’s decision greenlights the use of E15 for nearly two out of every three cars on the road today and furthers proves ethanol is a safe, effective fuel choice for American drivers,” said Renewable Fuels Association President Bob Dinneen. “EPA continues to move in the right direction with respect to increasing ethanol blends, but challenges still remain. The RFA continues to urge EPA to extend the waiver for E15 use to all cars and pickups.”

Dinneen notes that today’s announcement will accelerate the timeframe in which most vehicles on American roads will be covered by the waiver. “However, given that not every vehicle on the road is being approved, labeling issues and misfueling concerns by gas station owners must still be addressed. Additionally, the RFA worked with gas station owners and gasoline marketers to get legislation introduced in the last Congress to address misfueling concerns.”

Brian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE), says the move is another important step in making more renewable fuel choices available to consumers. “ACE continues to be confident that the scientific evidence proves E15 is safe and reliable for all cars, and is disappointed that EPA continues to insist of this confusing model-year division, especially when models earlier than 2000 are being excluded without scientific evidence of any issues with using E15 in those vehicles,” said Jennings. “We are pleased with this positive step, but remain concerned about the unnecessary confusion that will unfortunately be caused by EPA’s piecemeal, partial-waiver approach.”

The Environmental Protection Agency has officially announced approval of 15% ethanol blended fuel for vehicles as old as model year 2001.

The U.S. Environmental Protection Agency (EPA) today waived a limitation on selling gasoline that contains more than 10 percent ethanol for model year (MY) 2001 through 2006 passenger vehicles, including cars, SUVs, and light pickup trucks. The waiver applies to fuel that contains up to 15 percent ethanol – known as E15. EPA Administrator Lisa P. Jackson made the decision after a review of the Department of Energy’s thorough testing and other available data on E15’s effect on emissions from MY 2001 through 2006 cars and light trucks.

These waivers represent one of a number of actions that are needed from federal, state and industry to commercialize E15 gasoline blends. Also, EPA is developing requirements to ensure that E15 is properly labeled at the gas pump. The label will be designed to prevent refueling into vehicles, engines, and equipment not currently approved for the higher ethanol blend.
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The Environmental Protection Agency is expected to announce this morning the approval of using up to 15 percent ethanol blended fuel in vehicles as old as model year 2001.

In October, EPA approved the use of E15 for use in vehicles built in the 2007 model year and newer, but put off the decision on older vehicles until further testing could be done by the Department of Energy.

Ethanol organizations in support of E15 and other groups opposed to using higher blends of ethanol are standing by this morning waiting for EPA to release the official decision to provide reaction.

A delegation of representing Michigan ethanol producers hit Capitol Hill on Thursday for a series of meetings with members of Congress and their staff. The fly-in, organized by Growth Energy, was designed to educate lawmakers about the benefits of ethanol.

The Michigan delegation includes David Gloer and Don Morse with POET Biorefining-Caro, Gary Lazarski of Carbon Green BioEnergy and Steve Bleyl from Green Plains Renewable. They are pictured here in the office of Rep. Dan Benishek (center) along with Growth Energy representatives Jim Nussle and Tom Buis. (Thanks to Growth Energy for providing the photo)

“This is an important opportunity for Michigan ethanol supporters to speak directly with the policy makers in Washington about the benefits of domestically-produced ethanol,” said Gloer, who is General Manager of POET Biorefining Caro. “If we want to reduce our dependence on foreign oil, create jobs here in the U.S. and strengthen our national security, we must invest in America’s fuel: ethanol.”

During the group’s two day visit, they will meet personally with four of their state representatives as well as staff members of two others and Sen. Debbie Stabenow (D-Mich.) The meetings will focus on how expanding the production of ethanol through infrastructure development could help strengthen the Michigan economy and environment.

On behalf of its members, the American Coalition for Ethanol (ACE) submitted a letter to President Obama today in regards to his recent signing of the Executive Order “Improving Regulation and Regulatory Review.” This document instructs federal government agencies to develop plans to ensure that our regulatory systems protect the public’s health, welfare, safety, and environment while at the same time promoting economic growth, innovation, competitiveness, and job creation. The letter also applauds the president’s efforts to continue to create jobs while he encourages politicians to remove antiquated and overlapping rules that are stifling job growth.

The letter continues by asking the White House and the EPA to address three key regulatory issues related to biofuels and U.S. economic and environmental security. The letter first addresses two rules concerning ethanol under EPA jurisdiction that send mixed messages: RFS2 which requires 36 billion gallons of renewable fuel use by 2022 and the EPA only allowing all conventional vehicles to use E10. ACE notes that “clearly these regulations are incompatible.”

ACE also points out that EPA’s current action on E15 will not fulfill the RFS2 requirement. The letter states, “While EPA finally authorized some newer model-year cars to use E15, the agency has created unnecessary confusion by declaring, without scientific evidence, that older cars should not use E15. As a result, we expect very little E15 use until such time EPA authorizes a more complete approval.”

ACE is also urging the EPA to enforce a rule that appears to be unenforced, or at best partially-enforced, today. In 1990, Congress amended the Clean Air Act to require EPA to protect human health by significantly reducing the use of carcinogenic aromatics by refiners to increase octane in gasoline. Aromatics are produced during the refining of crude oil into gasoline and when these aromatics, such as benzene, toluene, and xylene, are combusted by motor vehicles, they result in a major source of toxic pollution in U.S. urban air sheds. ACE writes that to their knowledge, the agency has failed to curb the use of toluene and xylene aromatics by refiners.

The letter concludes, “Resolving these three regulatory matters will meet your objectives for rooting out conflicting regulations and balance the need to grow the economy and protect the environment. Moreover, taking these steps will enable the American ethanol industry to help save and create U.S. jobs and provide motorists with fuel choices that are more affordable and cleaner than fossil fuel.”

You can read ACE’s letter in its entirety here.

The Ethanol Across America education campaign has released the Economic Impacts of Ethanol Production Issue Brief this week. The purpose of the report is to illustrate the significant benefits of ethanol production to the U.S. economy. The latest Brief in the series examines the impacts of several fuel ethanol facilities in the states including South Dakota, Iowa, Nebraska, and Indiana and shows how they are positively helping the economy.

“We have long been aware of the benefits of ethanol production at the local level, and the case studies we provide clearly quantify that. This brief also makes it clear that jobs resulting from the ethanol industry, both direct and indirect, fuel the economy at all levels,” said Douglas A. Durante, the director of the Ethanol Across America Campaign.

According to the Brief, and citing a third party study, the ethanol industry added $2.9 billion of gross output to the U.S. economy in just 2009. It also highlights the reduction in Federal outlays for farm programs as well as the substantial energy costs savings. The Brief states that increasing the motor fuel pool with ethanol lowers the cost of gasoline to consumers and the potential for reducing oil imports could lower the U.S. oil bill by more than $60 billion dollars per year.

The report also calculates that full implementation of the Renewable Fuel Standard (RFS2), which will largely be met with ethanol, could increase net farm receipts across the country by $13 billion per year. One case study illustrates that a 50 million gallon per year biomass ethanol plant in the Northeast would generate $170 – $200 million in income and create between 4,000 and 6,000 jobs during construction. Ethanol production from wood, agriculture residues, waste paper, and other cellulosic sources is being looked at in every state.

“Displacing imported oil, reducing health costs, creating jobs, reducing federal outlays– the list goes on,” said Durante. “With Congress and the Administration calling for a renewed commitment to producing domestic, clean energy, biofuels like ethanol make more sense than ever. With so many new members of Congress eager to look at these issues, we wanted to make this information available to them as they begin this new session.”

In addition to loan guarantees for biorefineries in the southeast, the U.S. Departments of Agriculture (USDA) and Energy (DOE) announced other steps today designed to give the advanced biofuels industry a much-needed boost.

“With the renewable fuels standard goal, there’s going to be a need for additional biofuels and it must be met in large part by advanced biofuels,” said Agriculture Secretary Tom Vilsack when making the announcement today.

Over 120 biofuel producers in 33 states will be receiving payments from USDA as incentives to produce advanced biofuels. Under the Farm Bill, the Bioenergy Program for Advanced Biofuels authorizes payments to eligible producers to expand production and use of advanced biofuels.

Payments, which range from less than $500 to over $1 million, are based on the amount of advanced biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat. The producers receiving payments include a significant number of biodiesel plants, since biodiesel is considered an advanced biofuel.

Meanwhile, the DOE is offering a $241 million loan guarantee Diamond Green Diesel – a proposed joint venture between Valero Energy Corporation and Darling International Inc. The loan guarantee will support the construction of a 137-million gallon per year renewable diesel facility in Norco, Louisiana, about 20 miles west of New Orleans. Valero Energy Corporation plans to direct the design, construction and operation of the project and market all of its output, while Darling International Inc. will supply feedstock to the project.

Agriculture Secretary Tom Vilsack today announced $405 million in guarantee loans for three biorefinery projects in the southeast under the Biorefinery Assistance Program. The three projects are located in Alabama, Mississippi, and Florida.

“We believe it’s critical and crucial to develop a biofuel industry powered by feedstocks produced in every corner of the country,” said Vilsack during a conference call to announce the loan guarantees.

In rural western Alabama, Coskata, Inc. has received a letter of intent for a $250 million loan guarantee to construct and operate a cellulosic ethanol biorefinery facility. This 55-million gallon-per-year renewable biofuel project will use woody biomass to produce ethanol.

In Vero Beach, Fla., the INEOS New Planet BioEnergy, LLC. has been selected to receive a $75 million loan guarantee to construct and operate a biorefinery capable of producing 8 million gallons-per-year of cellulosic ethanol and gross electricity production capacity of 6 MW. The feedstock for the process will include primarily vegetative waste (citrus and agricultural wastes), yard wastes, wood waste, and municipal solid waste.

When asked about Range Fuels in Georgia, which has received USDA loan guarantees but is having to shut down due to lack of additional investment, Vilsack said he is hopeful that the company will work through the technology issues that are causing investment concerns. “Our efforts along with the energy department’s efforts are really designed to prime the pump,” Vilsack said. “The fact that we’re making these announcements today in a variety of states across the country indicates our belief that this industry is here to stay.”

Vilsack also announced investments to study renewable energy feasibility in rural communities and payments to eligible producers to expand production of advanced biofuels.

Listen to or download Vilsack’s press conference here: Tom Vilsack on Biofuels Projects