Domestic Fuel

Cobalt Technologies has added Andrew Meyer to its executive team. He will be serving as the company’s Senior Vice President of Business Development and he will be responsible for leading Cobalt’s effort to commercialize biobutanol.  Most recently, he was with Amyris where he was director of Supply and Distribution where he developed the company’s fuel marketing program. He has also worked for Chevron and BP.

“Cobalt has had a momentous year – opening a pilot plant, announcing scientific breakthroughs with beetle-kill wood, partnering with the Navy to make jet fuel –and I’m excited to be part of its executive team,” said Meyer. “My goal is to put in place the value chain to drive our top line growth, enabling the company to realize the tremendous bottom line opportunity created by the technology.

CEO Rick Wilson said of the new team member, “Our current focus is on forming the partnerships to execute our first commercial facilities globally. Andy is a fantastic choice for leading our commercialization efforts, given his experience building value for shareholders in a startup environment at Amryis, and for his deep understanding of both the fuels and chemicals markets.”

Ethanol fermentation company Lallemand Ethanol Technology also announced an addition to its team today with the appointment of Prof. Graeme Walker as the new Scientific Director of the Ethanol Technology Institute. He replaces the retiring Dr. Mike Ingledew. Dr. Walker is currently Professor of Zymology and director of the Abertay Yeast Research Group (Dundee, Scotland) and will continue in this capacity. In his career, he he has already published more than 100 articles in journals, authored several books, and keynoted several conferences. He is the author of the textbook: Yeast Physiology and Biotechnology, published by J. Wiley (1998) and Bioethanol, published by Ventus (2010).

“Lallemand Ethanol Technology is very excited to have someone of the caliber and experience of Dr. Walker joining the Ethanol Technology Institute.” says Bill Nankervis, General Manager. “Graeme, not unlike his predecessor Dr. Mike Ingledew, is one of those unique individuals who are recognized leading academics, yet are able to bridge the gap that so often exists between academia and practical application of the theory in industrial situations. We look forward to working with Graeme to continue the excellence of The Alcohol School and the other programs and publications the Ethanol Technology Institute is known for around the world.”

Before the ink was dry extending the 54 cent ethanol tariff for one more year, the Brazilian Sugarcane Industry Association (UNICA) threatened to take the legality of the ethanol tariff to the World Trade Organization (WTO). Now several U.S. senators are embroiled in the debate including John McCain (R-AZ) and John Barrasso (R-WY) who said earlier this week that the extension on ethanol imports in likely illegal under international trade rules. While the senators didn’t out and out lend support to UNICA, indirectly some believe that their support is there.

“I believe the WTO would rule against the United States because it’s clearly a subsidy that is neither warranted nor in keeping with WTO regulations,” Senator McCain of Arizona told reporters after a meeting with Brazilian President Dilma Rousseff in Brasilia.

Today, Senator Chuck Grassley (R-IA) responded to the two senators.“This isn’t a question for debate. The highest authority on U.S. trade policy said more than two years ago that the U.S. ethanol tariff is clearly permitted under World Trade Organization rules. Besides, the United States already provides generous duty-free access to ethanol from Brazil and other countries imported under the Caribbean Basin Initiative, but the CBI cap has never once been filled. In fact, as of December 20, Brazil and other countries filled the cap for 2010 less than 1 percent.”

Should Brazil move forward with their case and win, it won’t be the first time. They have won their last two WTO cases against U.S. cotton and EU sugar subsidies.

McCain has never hidden the fact that is he opposed to all ethanol subsidies. Barrasso’s opposition to the tariff stems in his belief that all clean energy should be made available to all citizens as quickly as possible and one way this can be done is to remove the ethanol tariff.

The state of Iowa continues its monopoly over ethanol plants today with the announcement that the Iowa Power Fund has awarded DuPont Danisco (DDCE) a $9 million grant to build a cellulosic ethanol plant in either Story or Webster County. The biorefinery will use corncobs, leaves and stalks to produce cellulosic ethanol.

Interestingly, should the plant be sited in Emmetsburg, Iowa, located in Webster County, it will be within spitting distance of POET’s Project Liberty, their version of a cellulosic plant that will use corn cobs and stover to produce ethanol and is expected to be in production by 2012. This news comes on the heels of the announcement that DuPont is buying Danisco for a reported $6.3 billion.

The grant is $10 million less than what DDCE requested. Regardless, the company anticipates that once a final decision is made on location the plant will be operational in 2013. Iowa, a state that already has 40 corn-ethanol plants, beat out Nebraska for the project.

“We had an attractive offer from Nebraska,” said Jennifer Allison Hutchins in an article in the Des Moines Register. She is a spokeswoman for the DuPont/Danisco partnership. “But Iowa’s offer was good as well, and we felt that Iowa offered a better source of feedstock and rail availability.”

According to the Register, other possible plant locations include Nevada, Iowa next to the operational, Lincolnway Energy ethanol plant or west of Fort Dodge near an operational Valero Energy plant. Another option is to locate it next to a plant that has suspended construction owned by British corn processor Tate & Lyle.
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The U.S. Grains Council (USGC) is helping U.S. companies register as interested parties to China’s anti-dumping investigation against imports of U.S. origin distiller’s dried grains with solubles (DDGS), an ethanol by-product.

The first step in the investigation involves helping DDGS producers register as interested parties, a process that must be completed no later than Jan. 17 in Beijing (which is Jan. 16 in the United States) and is further complicated by the need to translate all registrations into Chinese. Nearly 70 companies have already registered with USGC.

Registering as an interested party is an important step, since registered parties can qualify for lower, negotiated tariffs if there is a finding in the investigation. In contrast, unregistered companies could face the highest tariffs of all. Once the registration process is complete, Chinese authorities will begin a fact-finding process that will include investigations of specific company practices. To reach a final ruling against the U.S. trade, China must show evidence that DDGS has been dumped in the Chinese market at prices below what other buyers pay and that Chinese interests have been injured by the dumping. Provisional tariffs on DDGS could begin as early as June 2011. China is expected to make a decision on its findings by Dec. 28, 2011, though that deadline can be extended by six months if needed.

U.S. shipments of DDGS to China skyrocketed from almost nothing three years ago to more than 2 million metric tons in 2010 and may reach as much as 3-5 million tons in 2011.

A webinar on messaging for the biofuels industry will be held Wednesday, January 26 from 2:00 – 3:00 PM central time.

The webinar, “Back to the Basics: Three Reasons the Biofuels Message Has Gone Bad,” will discuss how ineffective messaging by the industry has helped lead to a decline in public support for biofuels in recent years, and how we can do better.

Presented by renewable energy PR specialist Joanna Schroeder, who writes for Biofuels Journal, Domestic Fuel and numerous other publications, this is an opportunity for anyone involved in the business to understand and change the biofuel messaging dynamics. Registration information is available here from gotomeeting.com.

Flex fuel vehicle (FFV) drivers in southeast Alabama now have two new locations to get 85 percent ethanol fuel with the opportunity to get mid grade ethanol blends in the future.

Inland Stores (a subsidiary of Southwest Georgia Oil Company) has replaced all of its dispensers at their SunValley Market stores in Enterprise and Dothan, AL with new blender dispensers. The new dispensers offer the traditional Regular, Midgrade, and Premium gasoline products, and now E85. The new dispensers also have the ability to offer another ethanol-blended fuel at a later date. These two sites are the first in Alabama, and some of the few in the United States, to have E85 available from all of its dispensers, giving drivers of FFV the ability to fuel with E85 from any dispenser.

According to Inland officials, ethanol used at both Alabama sites is produced at the First United Ethanol plant located just across the Alabama-Georgia border in Camilla, GA, less than 100 miles away. In addition, the company acknowledges support from Bosselman BioFuels Solutions, Alabama Clean Cities Coalition, Growth Energy, Alabama Soybean and Corn Association, and First United Ethanol were all key to establishing these new E85 fueling sites.

“We congratulate and commend SunValley Market/Inland Stores for their forward thinking and for taking the initiative to provide dispensers with the capability to not only offer E85, but also the ability to offer future fuel with different blends of ethanol,” said Mark Bentley, Executive Director of the Alabama Clean Fuels Coalition. “In 2006, there were no public stations pumping E85 fuel in the state. Last year, considering both public and private stations, E85 fuel displaced over 700,000 gallons of traditional gasoline in the State of Alabama. With the addition of these two sites, there are now 15 public stations making E85 fuel available to the general public.”

Inland Stores owns and operates 17 SunValley Market & Deli convenience stores in southern Alabama and plans to continue adding E85 capabilities to more of its locations.

Energy company Valero Energy Corporation will invest up to $50 million dollars into one of the world’s first commercial scale wood-based cellulosic ethanol biorefineries to be started later this year in Kinross Charter Township, Michigan.

This press release from biofuels company Mascoma Corporation says the deal through Mascoma’s operating subsidiary, Frontier Renewable Resources LLC, with Valero, the nation’s largest independent oil refiner, is a sign of just how viable cellulosic ethanol is and will help commercialize the green fuel:

As further support of the project, Valero would provide project development and construction oversight services. The biorefinery is planned to have an annual production of 40 million gallons of low-carbon cellulosic ethanol, to be covered by the off-take arrangement with Valero. Frontier will use hardwood pulpwood, which is selectively harvested, naturally regenerated, and is an underutilized, abundant resource in the area surrounding the Kinross biorefinery. Mascoma’s 200,000 gallons of cellulosic ethanol per year demonstration facility in Rome, New York, has demonstrated the viability of the technology over the past two years and sets the stage for the commercial facility.

“Valero’s proposed investment in our first commercial-scale production facility proves the economic practicality of Mascoma’s technology for the conversion of woody biomass into ethanol,” said Bill Brady, Chief Executive Officer of Mascoma. “We are also thrilled to have Valero as a shareholder in Mascoma Corporation as there are many synergies even beyond the Kinross facility, where the technologies we have developed could be helpful to Valero’s business.”

“Adding Valero as a partner is the perfect addition to complete this project,” said Steve Hicks, Chief Executive Officer of Frontier Renewable Resources and President & CEO of J.M. Longyear, LLC. “The culmination of Mascoma’s leading Consolidated Bioprocessing (CBP) technology, coupled with Longyear’s expertise in supplying the raw materials, is the perfect compliment for a leading oil company to come in as an equity and off-take partner.”

The release goes on to say that Mascoma recently acquired SunOpta BioProcess Inc. (SBI) to give the company the technology to convert non-food cellulose into ethanol.

High school seniors in Minnesota will have the chance to receive scholarships for their essays on biodiesel.

Biodiesel Magazine reports the American Lung Association in Minnesota and the Minnesota Soybean Growers Association are sponsoring the writing contest, now in its fifth year:

“We’re always looking for new ways to get young people involved and informed about biodiesel,” said Robert Moffitt, communications director for the Clean Fuel and Vehicle Technologies Program of the American Lung Association in Minnesota. “Minnesota is really a pioneering state for the use of biodiesel, and what better place to hold a biodiesel essay contest than here—the first state in the union to require biodiesel in all diesel sold…This is our fifth year, and we’ve always had a very good response. There is some very innovative and creative thinking out there from our young people, and we just wanted to be a part of that.”

According to Moffitt, two scholarships will be awarded this year. “The first place scholarship winner will receive $1,000 that they can use at the post-secondary school of their choice,” he said. “The second place winner will win a $500 scholarship.”

Open to high school seniors in Minnesota, applicants will need to write an essay on biodiesel in 1,000 words or less, using their own biodiesel topics or one of three topics provided:

- Biodiesel’s benefits to Minnesota

- How you can impact biodiesel use in your area

Applications must be received by 4:30 p.m. on March 30. More information is available here.

More American vehicles will be using more biofuels, as well as electricity and natural gas, in the next 12 years … according to the man in charge of the U.S. government’s investments in General Motors and Chrysler – aka, President Obama’s “car czar.”

This article from Reuters says that U.S. Treasury official Ron Bloom believes the U.S. auto industry will change more in the next dozen years than it did during the past 50 … including the use of alternative energy:

“We will take substantial steps toward using electricity, bio-fuels, and natural gas to power our cars, and those vehicles still using oil will consume far less of it,” Bloom said.

While the percentage of cars using alternative fuels a dozen years from now will still be relatively small, Bloom said, “the shift will be viewed as inevitable, and the trajectory of change will be accelerating with take-off velocity in sight.”

Bloom equates the increase in auto intelligence in the next 12 years to the same leap cellphone technology made in the last dozen years.

Kyocera Corporation has launched a new fun, interactive and educational website aimed at people of all ages to learn about solar energy and its role in combating global environmental concerns. The “Solar Power Expo” website is designed to give the student the experience of visiting a large outdoor solar power exposition with five unique pavilions featuring diverse themes. With engaging and fun visuals and music, visitors can look around the pavilions interacting with various features that introduce the marvel of solar power, the history of the company’s solar power business, and the various environmental activities that they are engaged in. Previously only in Japanese, the site is now available in English to help reach a larger audience.

The five solar learning pavilions include:

• Pavilion 1: SAVING THE EARTH – An introduction with photos and graphs to the environmental problems the world faces, and the solutions that are available through solar power.
• Pavilion 2: MARVELS OF THE SUN – Watch a six minute video with music illustrating the history, makeup and secrets of the sun.
• Pavilion 3: PAINTING THE SUN – An exhibition of sun-related drawings by children from around the world.
• Pavilion 4: SOLAR POWER BY KYOCERA – Features diagrams explaining how solar energy is converted into electricity by the photovoltaic effect. Also, a history of Kyocera’s solar power business activities since 1975.
• Pavilion 5: OUR SOLUTION – An outline of the solutions the Kyocera Group is working towards. Along with an introduction to the environmental and social responsibility activities of the Group.

The Kyocera Corporation was founded more than half a century ago, and has been involved in the solar power business for more than 35 years. The company  has been proactive in research, development and the promotion of solar power along with its other environmental activities. With the Solar Power Expo, Kyocera hopes to help increase awareness about environmental issues and the amazing capabilities of solar power as a clean energy source.

The United States Department of Agriculture (USDA) released its final report on the total 2010 corn crop and supply and well as its updated estimates of corn use. The total 2010 corn production was 12.45 billion bushels, the third largest crop in U.S. history.

There were some unanticipated changes in the report as well. First, the corn yield was lower – 152.8 bushels per acre but overall, this is still the 4th highest. The reduction in yield was offset by the addition of 100,000 harvested acres. Second, the USDA increased its demand forecast to 4.9 billion bushels for the marketing year that runs from September 1, 2010 through August 31, 2011. This should equal ethanol production of nearly 13.5 billion gallons. When taking into account the contribution of distillers grains and other feed co-products of ethanol production, USDA lowered its livestock feed usage by 100 million bushels.

Ending stocks of corn were reported at 745 million bushels, down from last month’s report.

The Renewable Fuels Association (RFA) took time to analyze the report and determine how it may impact the ethanol industry. They stated, “While not as large as originally thought, the 2010 corn crop is quite robust considering the challenges much of the Corn Belt endured. With the 4th highest yields and 3rd largest crop on record, American farmers once again demonstrated their ability to produce a safe and abundant corn supply.”

RFA also noted that USDA kept their ethanol production estimates for the 2010/2011 marketing year in line with industry expectations. The organization also thinks it highly unlikely that the USDA will reverse their numbers in the future, especially in a higher direction due to the constraints of the E10 blend wall and the anticipated slow adoption of E15 ethanol blends.
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The Environmental Protection Agency (EPA) has announced that they will be delaying any decisions on greenhouse gas permitting requirements (GHG) for carbon dioxide from biomass combustion and other biogenic emissions. Last fall, the EPA said that they were considering adding these types of emissions to the required reporting under the Renewable Fuels Standard (RFS2) Tailoring Rule. With this news, the Renewable Fuels Association (RFA) expressed gratitude.

“EPA’s deferral of permitting requirements for biogenic emissions sources is good news and it is the right step, given that the science clearly shows using biomass for energy does not add to atmospheric CO2 levels on a net basis,” said RFA President Bob Dinneen. “Failure to exempt biogenic ethanol fermentation emissions from the GHG Tailoring Rule’s permitting requirements would have been unnecessarily costly and burdensome for our industry. Inclusion of biogenic fermentation emissions meant the permitting requirements would have applied to many ethanol plants that otherwise would not have been subjected to requirements. We appreciate EPA’s sensible approach to this complex issue and look forward to working with the agency on a commonsense solution.”

Agriculture Secretary Vilsack also made remarks about the delayed ruling. “I strongly support EPA’s announcement today that it is starting an expedited rulemaking so that it can defer for three years greenhouse gas permitting requirements for biomass and that it is also undertaking a scientific assessment of how emissions from biomass should be treated under the Clean Air Act.”

Vilsack continued, “America’s forest owners, farmers and ranchers can play a crucial role in providing renewable energy from wood, switch grass and other agricultural products. Homegrown energy can provide jobs in rural America while reducing greenhouse gases. Markets for woody biomass in particular can be especially important in allowing the US Forest Service and other landowners to reduce the threat of catastrophic wildfire while restoring more natural conditions in our forests. EPA’s action today will provide the agency with the time it needs to ensure that greenhouse gas policies properly account for the emissions and carbon sequestration associated with biomass.”

The deferment of a decision means for the time being, biogenic CO2 emissions from ethanol fermentation will not be subject to newly enacted permitting requirements under EPA’s GHG Tailoring Rule for at least three years. In the past, biogenic emissions had never been considered for monitoring because they are naturally occurring as plants die and decay and their emissions are offset when the carbon is removed from the environment by living, thriving plants – a process known as photosynthesis.

Therefore, the industry was alarmed when the EPA failed to exempt biogenic carbon emissions from determinations of the applicability of the Prevention of Significant Deterioration and Title V Permitting Programs under the GHG Tailoring Rule. You read a history of RFA’s comments on the issue to the EPA here.

No, it’s not a scene from Jurassic Park where the dinosaurs become environmentally conscious, but rather, a company that Raptor Technology Group, Inc. is in the process of acquiring has started up a new biodiesel plant.

This company press release says Raptor Fabrication and Equipment, Inc. got the first batch of ASTM certified biodiesel and will now begin its commercial production of biodiesel fuel at Fort Lauderdale-based Greenwave Biodiesel’s 3.6 million-gallon-a-year refinery, using Raptor’s mid-sized, multi-feedstock production system:

“The Greenwave plant is our first launch of the new year and we have introduced exciting new remote monitoring technology in the plant giving us the ability to monitor production and diagnose any problems increasing overall production and customer satisfaction,” said Tom Gleason, President and CEO of Raptor Fabrication and Equipment. “With the reinstatement of the federal biodiesel tax-credit and facilities we currently have in production for customers, 2011 is expected to be a strong year for Raptor,” added Gleason.

It should be an interesting year in the biofuels debate. The response to our latest poll shows some pretty divided results which might make it interesting to see how Congress handles things after hearing from their constituents. In answer to the question “What do you think will happen with biofuels policy this year?” Our results are that 38% say there will be another one year extension of the tax incentive, 22% say there will be new incentives for infrastructure, 20% say there will be no federal biofuels incentives, 14% say there will be a multiple year extension and 6% chose other. If you chose other then feel free to comment with what you think will happen.

Our next ZimmPoll is now live and asks the question, “What do you think about the number of farm groups? Let us know what you think and thank you for participating.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

The National Biodiesel Board, along with auto industry partners Ford Motor Company and General Motors, will be holding a symposium at the North American International Auto Show (NAIAS) in Detroit on Wednesday, January 12th from 2:00 – 3:30 p.m. in Cobo Center’s Michigan Hall.

This NBB press release says the biodiesel symposium, entitled “Biodiesel: Powerful Fuel, Promising Future,” will highlight how biodiesel is and will be used to power “vehicles in a cleaner, greener, more sustainable manner”:

“We are extremely pleased to have this opportunity to feature biodiesel as America’s first Advanced Biofuel to the global automotive industry,” said Joe Jobe, CEO of the National Biodiesel Board. “The U.S. Renewable Fuel Standard (RFS-2) established realistic goals of supplementing the nation’s fuel supply with advanced biofuels which reduce lifecycle carbon by more than 50 percent. Biodiesel is the first advanced biofuel to reach commercial scale production in North America, and it reduces direct lifecycle carbon by more than 80 percent. Biodiesel is thus very well-positioned to help the nation meet its immediate and long-term advanced biofuel goals.”

Jim Michon, Truck Fleet Marketing Manager for Ford Motor Company, said, “Many of our fleet customers are very conscious of the environment, and had been asking us for a truck approved for use with B20 biodiesel. In the process of developing our all-new Ford-designed, Ford-built 2011 Super Duty truck, we thoroughly tested B20 in our new engine under the harshest of conditions. B20 proved itself to provide the same fuel economy, power and performance our customers expect of our high performance diesels – there are no trade-offs for using B20”.