Domestic Fuel

With NASCAR set to run an ethanol-blend fuel in 2011, Growth Energy has announced a 15-day “Countdown to Daytona” campaign, leading up to the Daytona 500 on February 20, the premiere race to open the 2011 NASCAR season and the sport’s partnership with American Ethanol.

“We’re reaching out to our base of ethanol supporters and bringing them along for this exciting ride,” said Growth Energy CEO Tom Buis. “Over the next couple weeks, as we roll up to Daytona 500, you’ll see a series of American Ethanol promotions and outreach efforts. This is really a first-time event for our industry – and an exciting time to be part of ethanol.”

The American Ethanol marketing agreement, led by Growth Energy in partnership with the National Corn Growers Association, allows the U.S. ethanol industry to reach the tens of millions of loyal NASCAR fans with the positive story about ethanol – how it creates jobs here in the United States, helps clean the air by reducing emissions, and strengthens our national security by reducing our dependence on foreign oil.

The launch of NASCAR’s 2011 racing season includes the introduction of Sunoco Green E15 as the racing fuel for NASCAR’s three national racing series. This comes just weeks after a final decision by the U.S. Environmental Protection Agency on Growth Energy’s Green Jobs Waiver, approving E15 for all passenger vehicles made in the last decade.

The Countdown to Daytona Campaign will highlight events and news around the American Ethanol partnership, with a focus on the new American Ethanol Contingency award to be given to drivers and the use of the American Ethanol logo on the racing vehicles and on the green flag. Information on the Countdown to Daytona Campaign can be received as it is announced by becoming a member of Growth Force.

The 53rd running of “The Great American Race” is on Sunday, Feb. 20, and will be aired on Fox at 1 pm.

The opening general session of the National Biodiesel Conference is now taking place and NBB CEO Joe Jobe just left the stage. Joe gave us a rousing opening speech and I’ve recorded it for you so that you can listen or download below.

Joe says the conference will rock and he hopes that all the attendees will have opportunities to conduct some real business as we look at an optimistic year for the industry. He pledges to use all resources to get the biodiesel tax credit extended this year.

You can listen Joe’s opening remarks here: Opening Comments - Joe Jobe

2011 National Biodiesel Conference Photo Album

After the opening Super Bowl Party at the National Biodiesel Conference we had music on stage from Emily Richards and Jason Brock, long time attendees and performers. Joining them were several members of the Biodiesel Jam Band. Here’s NBB CEO Joe Jobe with Scottie Nisula on guitar. We had a number of other folks join in on stage too.

I’ve now got a photo album started which I’ll be adding to during the convention. Our opening general session is about to start so I’ve got to get over there. I’ll be doing some posts afterward that will include audio from the session. Check back here often for updates.

Post Update: Check out what you missed on stage last night in the video.

2011 National Biodiesel Conference Photo Album

During the Super Bowl party at the National Biodiesel Conference you could support the National Biodiesel Foundation in several ways that included buying raffle tickets for a post-half time raffle. Also in progress is a silent auction for some very incredible items like an autographed album by the Beatles. If you’re at the conference the silent auction runs through Tuesday. Hint, hint.

I spoke about supporting the foundation with John Hiesdorffer, Iowa Soybean Association, pictured center. He describes the purpose of the foundation and how you can support it even if you’re not at the conference.

You can listen to my interview with John here: Interview with John Hiesdorffer

The 2011 National Biodiesel Conference is underway and the party has started. The Super Bowl Party that is. Before the game the CEO of the National Biodiesel Board, Joe Jobe, played meet the press in the media room. He’s seen here being interviewed. I’ll be biodiesel blogging once again here on Domestic Fuel and on the Biodiesel Conference Blog.

I spoke with Joe to get an “advance” look at this year’s conference. Joe starts out by explaining what the ADVANCE theme means. He also says that there will be a good crowd of the right people who are here to get down to business at the beginning of what looks like a very promising year for the industry.

You can listen to my interview with Joe here: Interview with Joe Jobe

The 2011 National Biodiesel Conference & Expo kicks off today in Phoenix and there will be some new faces on hand – some biofuel scientists of tomorrow. This year, the National Biodiesel Board (NBB) helped to bring around 10 of these budding researchers to the conference.

A full-ride scholarship was awarded to Evan Le, a senior studying mechanical engineering at the University of Nevada. Le was chosen by the Next Generation Scientists for Biodiesel, an organization launched in 2009, to help encourage young students to pursue biofuels research.

“As an aspiring Ph.D. student, this scholarship will be a great opportunity for me to expand my knowledge of biodiesel and enhance my skills, so that I can make a meaningful contribution to bioenergy research,” Le said.

Le’s scholarship is supported by the United Soybean Board and the soybean checkoff, and the Ohio Soybean Council has also provided a partial scholarship to Qingshi Tu, a University of Cincinnati Environmental Engineering student. In addition, NBB has contributed partial scholarships to several other students, including the four co-chairs of the Next Generation Scientists for Biodiesel:

• Mikkel Leslie, Oregon State University (Environmental Engineering)
• Lucas Ellis, Dartmouth (Biochemical Engineering)
• Jason Strull, University of Nevada – Reno (Material Sciences and Chemical Engineering)
• Bernardo del Campo, Iowa State University (Biorenewable Resources and Technologies)

“These students are the future scientists who will develop and improve energy solutions, and bringing them into the biodiesel community now is a small investment that could yield huge returns,” said Don Scott, NBB director of sustainability. “They have demonstrated such an inspiring commitment to biodiesel, which promises to be here for decades to come, and we look forward to working with them.”

The renewable fuels industry is taking the opportunity to let the country know the value of domestically produced fuels. Last week, oil prices spiked to $100 per barrel amid fears that there may be oil flow disruptions due to political unrest in Egypt and surrounding regions. There is now speculation that Egyptian President Hosni Mubarak could relinquish power over the weekend and with that speculation are slightly lower crude oil prices. Experts believe that despite what transpires this weekend, prices will hold steady.

As higher oil prices translate to higher prices at the pump, T. Boone Pickens, along with others in the renewable energy field, have once again taken the opportunity to urge Congress and President Obama’s administration to pass comprehensive energy policy that will reduce the countries reliance on Middle Eastern oil. Pickens was out of the gate first with a statement last week.

“The question isn’t whether there will be more uncertainty in the Middle East. That’s a question of when not if. The greater question is whether our leadership is ready to solve this problem once and for all,” said Pickens. “I urge Congress and the Obama Administration to enact energy legislation now that gets America on our own resources. We have a tremendous supply of natural gas that can be used as a transportation fuel and is an immediate alternative to OPEC oil.”

Then earlier this week, Growth Energy’s Director of Public Affairs came out with a statement in response to some rumblings that ethanol was to blame for the rioting and upheaval in Cairo, Egypt and elsewhere. The link, ethanol opponents claim, is between wheat prices in the Middle East with demand for corn starch for ethanol in the U.S.

“These are people who want to play parlor games instead of looking at the facts and really finding out how markets work, or what’s motivating protesters in the Middle East. Seeing some of the distortions and pretzel logic these folks are going through, I’d encourage them to pick up Twister, instead,” said Thorne.

And today, Gen. Wesley K. Clark, former NATO Supreme Commander, and Co-Chairman of Growth Energy, responded to the threat of “contagion” in the Middle East.

Gen. Wesley Clark (Ret.) Talks about Egypt from Growth Energy on Vimeo.

Read the rest of this post…

Two and a half years ago DuPont partnered with Danisco (whom DuPont is now acquiring) to create DuPont Danisco Cellulosic Ethanol (DDCE). In just a short amount of time, the venture has come a long way in bringing cellulosic fuels closer to commercial scale. During the Iowa Renewable Fuels Association’s (IRFA) annual conference, Kyle Althoff, DDCE’s Director of feedstock development gave an update on where the company was in the process of pilot to commercial scale fuels.

The company is currently focusing on two feedstocks: stover in the Midwest and switchgrass in a partnership with University of Tennessee. Today, DDCE is looking for cost-effective biochemical solutions to convert those feedstocks into fuels, chemicals and biofuel products. They currently have a 250,000 gallon demonstration plant near Vonore, TN up and operating and they plan on having a commercial scale plant in operation by 2013. It looks like the future site of that plant may be somewhere in Iowa.

This past year, DDCE did a corn stover test harvest in several states where they monitored everything from the storage of the materials and different moisture contents through the logistics of the equipment in the field, to collecting data on the GPS movements, to speed and fuel usage of these implements. The program this year is focused on providing answers not only to for their plant, but also for their customers’ plants.

Today, Althoff said they are “focused on creating good technology for the industry and working with customers that can bring that technology into production.” They are also working on optimizing the technology to harvest biomass feedstocks, the economics as well as sustainability and working on best practices to ensure the company meets all of these needs.

Listen to or download Kyle’s presentation at the IRFA here: Kyle Althoff presentation. Download Kyle’s slides here.

IOWA RENEWABLE FUELS SUMMIT PHOTO ALBUM

KiOR, Inc. has a $1 billion biofuels project in the works that will convert wood biomass into drop-in biofuels such as gasoline and diesel fuel. Today the company announced that it has received a term sheet for a DOE loan guarantee to help financially support the project. KiOR’s project under the DOE loan guarantee program will consist of four biorefineries that when complete, will contribute approximately 250 million gallons of cellulosic biofuel to the Renewable Fuel Standard (RFS2), which allows up to 16 billion gallons of the total 36 billion to be cellulosic biofuels by 2022. The first two plants are expected to be in Mississippi, with additional sites planned in Georgia and Texas.

“We are pleased to work with the DOE on reaching this milestone and are excited about the scale and impact of the project,” said Fred Cannon, President and CEO of KiOR, based in Pasadena, Texas. “The project’s first facility, planned in Newton, Mississippi, is expected to be the largest cellulosic biofuels facility in the United States. Additionally, the project will have a significant impact on rural communities through the creation of direct, indirect and induced jobs, with over 14,000 jobs created during construction and over 4,000 jobs created during operations.”

Cannon continued, “The project also expects to reduce greenhouse gas lifecycle emissions by over 70% as compared to fossil-derived gasoline and diesel fuels. While the term sheet is an important step in the process, we recognize that more work lies ahead to finalize the loan guarantee and there is no assurance it will be issued until the loan is closed.”

Khosla Ventures is a current investor in the project and in a recent article noted that “paper mill compatible woodchips” per ton prices will decline quickly in the U.S. as the “ecosystem and cultivation of alternative ‘fuels grade biomass’ (which does not need to meet paper mill feedstock quality metrics) develops within five years.”

Mississippi Gov. Haley Barbour is excited to have KiOR in the state for many reasons, one being that the paper mill industry has seen a significant decline in jobs over the past few years and the biofuels plants will bring jobs back to the region.

“Last year Mississippi realized the tremendous potential of the KiOR technology and made a decision to bring it to our state,” said Gov. Barbour. “We’re excited the U.S. Department of Energy has come to the same conclusion to support this one-billion-plus dollar project to speed up the construction of two additional KiOR facilities here.”

Maas Companies of Rochester, Minn. is coordinating an online auction of the sale of Sustainable Energy’s brand new 600 tons/day Hexane Extraction Equipment. The timed, online auction will take place on Monday, February 7, 2011 and end on Friday, February 18, 2011 at 5:00 p.m. EST. Maas specializes in the selling of ethanol and biodiesel plants and related equipment. This equipment was manufactured by Crown Iron Works for a biodiesel plant expansion, however, the equipment was never installed and is now ready and waiting to be loaded up and sent to its new home.

Buyers who are interested in participating in this online only auction, will need to submit bids via Proxibid and supply the seller with a $50,000 deposit. Final and in full payment is due no later than February 22, 2011. At that time, the equipment will be loaded and transported to the new owner.

Tyler Maas, Sales & Marketing Director said, “The on-line timed auction offers this equipment to a new buyer at a significant savings over new construction. During tighter economic times, a savings on equipment can enhance a plant’s bottom line.”

A complete package detailing the bidding process is available by contacting the auction company directly at 507-285-1444. Information can also be found at the company’s website, www.maascompanies.com.

A $1.5 million loan will help an algae company buy the equipment to build its system of separating the water from the green microbes. And that could be key in the algae-to-biodiesel process.

Biodiesel Magazine reports that Algaeventure Systems Inc. has picked up the money from the Ohio development department’s R&D investment loan fund to support the purchase of machinery and equipment to manufacture its algae dewatering systems, a $2.5 million project expected to create 200 new jobs:

According to David Coho, Algaeventure’s vice president of business development, his company has developed a solid-liquid separation technology that enables energy-efficient algae culture dewatering. “The challenge with microalgae is, how do you separate it?” he said. “It’s kind of like taking a glass of water and adding food coloring to it, and then trying to get the food coloring back out. That’s the challenge, because microalgae can be so incredibly small.”

“Industry experts have said that you need to be less than $50 a ton in dewatering for algae to be viable,” he said. “We’ve developed a technology called micro-solid liquid separation. What we are able to do, without adding vacuum pressure, head pressure, or high energy spinning the water mass, is dewater that same species of algae in the that same concentration up to 20 percent solids with an energy cost of about $1.92. So, we are really shattering the barriers that have been found with dewatering technologies.”

Algaeventure officials say their technology works by leveraging the natural properties of water, not by using high vacuum or head pressure.

The 53rd running of the Daytona 500 is around the corner, February 20, to be exact, and when this event takes place, it will mark the beginning of a new era – the era of NASCAR running on Sunoco Green E15. This 2011 season, all three national NASCAR series will be running on this American made, American produced fuel and as this famous race nears, NASCAR took the opportunity to welcome the new fuel and National Corn Growers Association (NCGA) to the family.

“NASCAR is very proud to welcome as partners the hard-working family farmers all over the United States who grow the corn that will be used in our new Sunoco Green E15 fuel,” said Brian France, Chairman and CEO of NASCAR. “We are happy our sport can play a part in creating jobs and fostering energy independence by using a renewable fuel grown and produced in America.”

Last year NASCAR announced that it would be switching to Sunoco Green E15, a 15 percent ethanol blend made with corn grown in America. Shortly thereafter, the league announced its partnership with the American ethanol industry that includes Growth Energy and the NCGA.

During a press call this morning, I asked how much E15 would be used in all three series. Jim O’Connell, Chief Sales Officer for NASCAR said that since this was the first year to use the fuel, he was unsure of the total number of gallons that would be used. However, he stressed that he was “absolutely sure it would be American grown, American produced ethanol.”

Darrin Ihnen, NCGA’s Chairman and a corn farmer from Hurley, South Dakota, also said during the call that they are excited about this opportunity to educate motorists and NASCAR fans at race tracks around the country about the great work American corn growers are doing in feeding and fueling the world. He said that ethanol will be extremely visible as it races around the track and in addition they will support their on-track campaign with high-profile TV ads as well as a strong grassroots campaign that will include American farmers on the track answering consumer questions about the fuel. NCGA will work closely with Growth Energy on their educational and promotional activities.

“The goal is to bring ethanol’s positive messages from job creation to cleaner air to consumers. When people hear a message like ‘American Ethanol: Trusted By NASCAR,’ that carries a lot of weight and adds to ethanol’s credibility and reputation,” concluded Ihnen.

Listen to NCGA’s NASCAR Partnership Press Conference here: NCGA Partners With NASCAR

The National Biodiesel Conference & Expo is just a few days away, set to begin on Sunday and run through Wednesday, Feb. 9, 2011, and the theme for the event in Phoenix, Arizona is “Advance” – reflecting the fact that biodiesel is classified as an advanced biofuel by EPA under the Renewable Fuels Standard (RFS2). So it’s only fitting that the National Biodiesel Board’s chairman provides us with a preview of what will be talked about during the conference.

Gary Haer, who also serves as vice president of sales and marketing for REG (Renewable Energy Group), the nation’s largest biodiesel producer, talked about the future of the green fuel at last week’s Iowa Renewable Fuels Summit. During a panel session entitled “Advanced Biofuels Panel – A Turning Point for Renewable Energy,” Haer said that after a very challenging 2010, where the industry held its breath nearly all year while waiting for Congress to finally renew the federal $1-a-gallon tax incentive, biodiesel is ready to move forward as the nation’s first advanced biofuel.

“By EPA definition, an advanced biofuel must reduce greenhouse gas emissions by at least 50 percent. That gives us those environmental benefits, but it’s also good to note that biodiesel and advanced biofuels promote energy security … and they also contribute economic benefits for agriculture and rural America.”

Haer points out that biodiesel does not compete with food supplies and is more efficient than ever in the amount of energy used to produce each unit of energy. “Biodiesel continues to improve its energy balance. Today, it generates four units of energy for every unit consumed in the manufacturing and processing for finished product.”

Haer says the industry has plenty of capacity to meet the RFS2 requirements, as well as having enough feedstocks to produce the biodiesel to meet the increasing requirements. And he says there’s no new technology that has to be developed to meet that requirement. “With biodiesel, that next generation [of renewable fuels] is here today. The capacity, the industry is there. We’re ready to go, and we’re ready to utilize additional feedstock sources as they become commercially developed and commercially available.”

Haer admits there are some challenges out there, but the potential is so great. And he says since the stakes in the economy are so high, they must succeed.

“We’re providing jobs, and we’re providing green collar jobs for Americans. And we work hard to keep U.S. dollars in the U.S. economy.”

You can listen to Haer’s full remarks here: Gary Haer, NBB Chairman , as well as following along with his powerpoint presentation at this link.

Energy Secretary Steven Chu toured Sharp Electronics Corporation’s solar manufacturing facility in Memphis, Tennessee last week. According to an article on the Energy.gov blog following his visit, the plant has produced more than 2 million solar panels since 2002. Also, due to the positive response for more solar power from both the public and private American sectors, Sharp has increased its staff from 300 to 480 employees over the last year.

In addition, with the aid of federal incentives, the company has grown its production capacity at its Memphis plant from 60 megawatts a year to 140 megawatts of solar paneling, enough to power more than 140,000 average sized U.S. homes.

“We are honored to welcome Secretary Chu to Sharp’s solar panel manufacturing plant in Tennessee,” said Kozo Takahashi, Chairman and Chief Executive Officer of Sharp Electronics Corporation prior to his arrival. “Sharp has seen strong growth in demand for solar electricity and in turn we have steadily increased output and job creation, making our factory a perfect venue to amplify President Obama’s top renewable energy priorities for the country.”

While at Sharp’s facility, Secretary Chu toured Sharp’s solar panel manufacturing operation and discussed President Obama’s energy initiatives as laid out in his State of the Union Address on January 25. During his address, the President called for 80 percent of America’s electricity to come from clean energy sources by 2035.

The scholarship students who will attend the 16th Annual National Ethanol Conference: Building Bridges to a More Sustainable Future, have been selected by the Renewable Fuels Association (RFS) and the Renewable Fuels Foundation (RFF). The six students will receive free conference registration, allowing them the opportunity to meet and connect with renewable fuels industry professional leaders, policymakers and experts. The conference takes place in Phoenix, Arizona February 20-22, 2011.

The NEC scholarship recipients are: Ethan Kenney, a junior undergraduate at the University of Nebraska-Lincoln; Derek Latil a recent graduate who is working part time for IllinoisVentures; Anuradha Mukherjee, who is pursuing her PhD in the Department of Chemical Engineering at Oklahoma State University; Kai Nortey, a graduate student of Integrated Marketing Communications and PR at Golden Gate University in San Francisco, Julia O’Rourke, a 2nd year MS/PhD student in mechanical engineering and MPaff student in public affairs at the University of Texas at Austin; and Andy Pringnitz, a junior undergraduate student at Iowa State University, where he is studying Agricultural Business, Economics, and International Agriculture.

“Attending the NEC is a stepping stone for these students in their path of pursuing a career in biofuels and renewable energy,” said Mike Jerke, RFF Chairman and General Manager of Chippewa Valley Ethanol Company. “This is the perfect occasion to network with U.S. ethanol experts and explore the opportunities this industry has to offer.”

According to RFA, this year’s conference will focus on the future of an industry that can and will be the bridge from a national petroleum-fueled economy to one that is anchored in renewable fuels, sustainably produced from all biomass including grains and cellulose.