Domestic Fuel

The latest average cost for a gallon of gas nationwide, as reported by AAA, is $3.88, but it would already be $4.00 a gallon without ten percent ethanol.

According to the Renewable Fuels Association (RFA), based on current market conditions and federal renewable fuels policy, 10 percent ethanol blends (E10) are keeping gasoline prices $0.12 per gallon cheaper than they otherwise would be.

I talked with RFA Association Vice President of Research and Analysis Geoff Cooper who explains the math behind that calculation (which you can also find on the RFA website) and how the 45 cent per gallon tax credit creates additional savings at the pump for consumers in this edition of “The Ethanol Report.”

Listen to or download the Ethanol Report on gas prices here: Ethanol Report on Gas Prices

The Dukemobile is an FFV!

Never thought there would be a biofuels angle to the Royal Wedding, but as the Duke and Duchess of Cambridge left Buckingham Palace for the royal residence Clarence House, they drove off in a “convertible Aston Martin Volante DB6 MKII in Seychelles blue is owned by his father HRH The Prince of Wales” that runs on 85 percent ethanol.

“In June 2008, at the specific request of The Prince of Wales, who is keen that his cars should be run on sustainable fuel, the Aston Martin was converted to run on E85 bioethanol, made from English wine wastage,” reads the update on the Royal Wedding website.

They even have a Royal Wedding YouTube video of the couple leaving in the car:

Gevo has signed an engineering and consulting agreement with Mustang Engineering LP (Mustang) to convert Gevo’s renewable isobutanol to biojet fuel. The first step will be to focus on the downstream processing of isobutanol to kerosene (jet fuel) and from there to test the fuel in jet engines as well as in commercial planes.

“Our work with Mustang is another important step in the development of our biojet fuel business and Mustang is an ideal partner to advance our efforts in this important market,” said Dr. Patrick Gruber, CEO of Gevo.”Their refining and chemicals industries engineering and project management expertise will help us bring an integrated, turnkey solution to the refining industry.”

Gevo has also disclosed that its “fit for purpose” testing at the Air Force Research Laboratory continues and they anticipate releasing a final report in June. Once this “fit to purpose” testing has been completed successfully Gevo will begin jet engine testing with various engine manufacturers.

“The advent of the jet fuel carbon tax on international flights landing in the European Union is motivating the airline industry and fuel suppliers to seek cost-effective, renewable alternatives to petroleum jet fuel,” said Scott Baker, executive vice president of Mustang’s Process Plants and Industrial business unit. “Mustang is excited about this opportunity to further support Gevo in the development of the next generation of alternative fuels. The processing steps required to make this bio-jet fuel lend themselves well to integration into refineries and petrochemical facilities.”

Scientists in the St. Louis, Missouri area are hoping to get some help from local residents in finding the ideal algae to turn into biodiesel.

During the upcoming 2nd annual Algaepalooza, held Saturday, May 7, 2011 from 10am to 4pm in the Life Science Lab at the Saint Louis Science Center, people will be able to pick up algae-collecting kits as part of the Backyard Biofuels citizen science research project:

Last year, 1,000 families and individuals were given collection kits, and approximately 170 samples were cultured in the Life Science Lab to isolate individual algae species that produce oil. More than 100 of those isolated strains were sent to the Enterprise Rent-A-Car Institute for Renewable Fuels at the Danforth Plant Science Center, where they were tested for how much oil could be made and used for biofuel production. Those that showed promise are undergoing additional tests.

“Ten samples from last year’s algae gave high readings of oil production. Such encouraging results wouldn’t be possible without the help of citizen scientists.” said Matthew Stevens, senior lab technician at the Danforth Plant Science Center who conducts the research for the Backyard Biofuels program. “This year we have a goal to identify an algae species that boast better oil productivity than last year.”

And since folks will have the option of mailing in their collection kits, organizers expect more samples this year.

Algaepalooza gives visitors the chance to talk with the research scientists behind the project and learn why algae have the potential to be a sustainable source of fuel used to power cars, trucks and jet airplanes. More information is available at backyardbiofuels.org.

Interjet, Mexico’s domestic airline carrier, along with Airbus received praise today from The Consejo de Promocion Turistica de Mexico for the first successful test flight using biofuels. The test was conducted earlier this month with an Airbus A320 aircraft using a 30 percent biofuel blend produced from jatropha. The biojet fuel blend was made from locally sourced jatropha grown and harvested in Chiapas, a southern Mexican state. In the region, jatropha is also used by the indigenous Seri people of Sonora to make baskets as well as to tan leather.

Many countries around the world are looking to produce biofuels from jatropha including Mexico, the Philippines and Brazil. In 2007, these regions were cited as the best candidates for future biofuel production by Goldman Sachs. Although this was the first biofuel test flight in Mexico, it is anticipated that others will commence and Interjet and Airbus intend to speed up the development and commercialization of aviation biofuel in the country. This movement was spurred by the National Development Plan mandated by Mexican President Felipe Calderon Hinojosa. This plan calls for Mexico to include the environment as one of the elements for competitiveness, economic and social development.

“The test flight is the realization of a two year ambition for Interjet to develop a production chain for renewable biofuel, with the purpose of creating a Mexican platform for sustainable aviation bio-kerosene,” said Interjet President Miguel Aleman.

In addition to developing biofuels for the aviation sector, Mexico also expects to produce 100 million liters of biodiesel by 2012 from its biodiesel pilot plant in Chiapas.

Builder of solar power systems Solis Partners, will put in a rooftop solar array able to generate 1.2 megawatts (MW) of electricity for Shore Point Distributing Company, Inc.’s corporate headquarters and central distribution location in Freehold, N.J.

This Solis press release says the array on top of Shore Point’s 267,000-square-foot facility will offset approximately 75 percent of the building’s annual electric load:

“We are proud to be actively improving the environment while maintaining our reputation as one of New Jersey’s premier distribution companies,” said Rick Lonardo, vice president of operations at Shore Point. “This project will help us continue to provide the freshest and best quality beer while strengthening our commitment to the environment, our suppliers and our customers.”

“We’re delighted to be working with Shore Point.” said Jamie Hahn, managing director of Solis Partners. “As one of the leaders in the New Jersey beverage distribution industry, Shore Point’s solar initiative is sure to lead the way for companies that are interested in going solar. Their system will provide clean, low cost energy for up to 25 years, serving as a hedge against electricity rate increases.”

The system is to be completed this June. This follows Solis’ project I told you about back in March where the company put in a 921-kilowatt rooftop solar array for New Jersey’s Public Service Electric and Gas Company (PSE&G).

As gas prices go “up, up and away” once again oil companies are on the hot seat as they announced massive profits. And while the renewable energy industry continues to be attacked for its subsidies and incentives, no one mentions the billions of dollars of subsidies the oil companies receive each year and have been for over a hundred years. Meanwhile, consumers are pinching pennies to buy everything from groceries to gas and the fear is that the U.S. economy will slow once again.

The high gas prices and high oil company profits have President Obama saying that in light of federal budget deficits and public anger over oil profits (not a new phenomenon by the way), they will work with Congress to cut the subsidies, tax breaks and publicly-financed giveaways that global oil companies receive.

Yet this statement has the ethanol industry asking, “Is there hope for that?”

In response, Growth Energy’s CEO said, “Profits are one thing, but when these companies are also raking in billions of dollars in federal subsidies all while Americans are suffering at the pump, something’s got to give. High oil prices are driving up gas prices, grocery prices – everything. Many Americans don’t realize that they are underwriting these profits in the form of tax breaks and subsidies. Speaker Boehner has opened the door to talking to President Obama about ending these needless giveaways to global oil companies and we encourage the House to follow their lead. At a minimum, we need to have congressional hearings.

Buis concluded, “It’s time we end the handouts to big oil companies. It’s time we take what are the hidden costs and put them out in the sunlight – let’s see what it really costs the taxpayer for our addiction to foreign oil.”

You can listen to additional comments from Tom Buis here: Time to End Oil Subsidies & Taxes?

PsomasFMG was honored today for the completion of the country’s largest solar power project at a school. Linda S. Adams, secretary of the California Environmental Protection Agency (Cal/EPA), has awarded the company a Certificate of Achievement in Sustainability for their public-private partnership project for the Antelope Valley Union High School District (AVUHSD). The $52 million, 9.6 megawatt (MW) design-build project covers 10 separate high schools.

“This project is an innovative green solution that serves as a model for other school districts and municipalities,” said Secretary Adams. “Congratulations to the Antelope Valley Unified High School District and to PsomasFMG for demonstrating that ‘going green’ can save money and create jobs while decreasing our dependence on fossil fuels.”

The project broke ground in August of 2010 and was constructed without any financial cost to the district. It is estimated that over the next 20 years, the school district will save $40 million in energy costs and reduce greenhouse gas emissions nearly 250,000 tons. The system will provide 80 percent of the school districts electrical needs and their remaining needs will be purchased from Southern California Edison at a reduced rate.

Paul Mikos, executive vice president of PsomasFMG added, “It is enormously gratifying to receive recognition from the California Environmental Protection Agency for one of our first projects, which happens to be the largest school-based solar project in the United States. Moreover, our speed and agility in moving from concept to contract to power was exhilarating The success of this project shows that our model is an achievable solution for clients with long-term visions like the Antelope Valley Union High School District.”

Ever wonder how much carbon dioxide (CO2) you are emitting when you drive? How about when you’re driving an electric vehicle (EV)? Well, technically EVs don’t emit CO2 but there is CO2 emitted during the process of creating the electricity used to “charge up” the batteries.  There is an online tool helps people calculate their greenhouse gas emissions (GHGs) from flying, driving and home energy use. Now this tool created by TerraPass makes it possible to calculate your GHGs from driving all electric vehicles.

Using the U.S. EPA’s figures, the TerraPass calculator uses the “miles per gallon-equivalent” figure shown on vehicle sales stickers as an input to its calculations. Since EVs don’t use gasoline, a “gallon-equivalent” was determined to be 33.7 kilowatt-hours, the quantity of stored electrical energy equivalent to the energy stored in one gallon of gasoline. For example, the EPA rates the all-electric Nissan Leaf at 99 miles per gallon-equivalent.

Not driving an electric vehicle? The calculator also works for those driving all gas cars, ethanol or biodiesel fueled vehicles and even those running on compressed natural gas. In these situations, the driver enters the miles per gallon (or gallon-equivalent) from their own driving experience or from the numbers published by the EPA. They also drive the number of miles they drive each year, and walla, you know now have many GHG’s you’re spewing out.

The calculator update also provides emissions estimates for all 2011-model cars on sale nationwide. This makes the TerraPass calculator the most comprehensive U.S. vehicle calculator available. While many calculators use EPA data, the EPA’s public dataset contained substantial errors and omissions this year.

“For literally hundreds of car models, we went back to source data and either corrected or supplemented the EPA dataset,” said Erin Craig, TerraPass’ CEO. “Our customers were helpful in road-testing our calculator to make sure we got it right.”

Here is a quick look at a few of the most fuel-efficient vehicles provided the following figures (lbs of CO2 per year with 12,000 miles driven):

Toyota Prius: 4,661 lbs CO2
Lexus CT 200h: 5,549 lbs CO2
Nissan Leaf: 5,588 lbs CO2
Honda Civic Hybrid: 5,684
Honda CR-Z: 6,298 lbs CO2

Ready to try out your own vehicle? I did and the pic included is of my GHG emissions. Now try it for yourself.

You hear about new energy efficient technologies for your home almost every day but how do you incorporate them into your own household? Well that question has been asked and answered in the new E-power House, a 15-foot-tall cutaway model home that debuts on May 1, 2011 at the Da Vinci Science Center located in Allentown, Pennsylvania. Visitors will be able to look into all the rooms in the home to see both the energy efficient technologies as well as important energy-saving tips. Another cool feature – a bike parked in front of the home will light up side-by-side incandescent compact fluorescent and LED light bulbs when children (or adults) activate some pedal power.

“This partnership with the Da Vinci Science Center is a great way to teach visitors about the value of energy efficiency and give them information they can use in their daily lives,” said Thomas C. Stathos, director of Customer Programs and Services for PPL Electric Utilities. “Most of the center’s visitors are children, and this exhibit focuses on them. These youngsters can influence energy efficiency in their own homes right now. They are the tenants and homeowners of the future, so it’s important they become educated energy consumers.”

The E-power House, located on the center’s first floor, features a bathroom, bedroom, laundry room, kitchen, and living room. Features include rooftop solar panels, examples of attic insulation, a ceiling fan, and a computer.

“The E-power House is a first-rate addition to the Da Vinci Science Center experience,” said Troy A. Thrash, the center’s executive director and chief executive officer. “Electricity is vital to all we do, for our necessities and life’s conveniences. Using energy efficiently is vital as well and this exhibit shows visitors how they can be smart energy consumers.”

The E-power House is sponsored by PPL Electric Utilities. In addition, their parent PPL Corporation, has been a long-time supporter of the science center and sponsors the Watt’s Up” section of the center where the house is located.

Rochester Hills, Michigan is the home of the newest propane autogas station. The site was commemorated during a ribbon-cutting ceremony today that featured the recently installed 1,000 gallon propane fuel tank by Ferrellgas. Also on hand for the event was Wright & Fillippis, who unveiled 12 new propane autogas powered Ford E-350 and F-450 cargo vans that featured the ROUSH CleanTech technology. Clean Energy Coalition rounded out the group.

A DOE Recovery and Reinvestment Act grant secured by the Clean Energy Coalition enabled the conversions of the cargo vans to propane and helped to pay for the propane fuel tank installation. “Clean Energy Coalition provides funding and resources for partnerships like ROUSH CleanTech and Wright & Filippis to flourish,” said Sean Reed, executive director for Clean Energy Coalition. “These partnerships are resulting in remarkable advances in alternative fueling options and making it difficult for any transportation company to say ‘no’ to cleaner, more cost-effective alternatives for their fleets.”

Wright & Filippis’ fleet vehicles travel more than 975,000 miles each year to serve patients needing home delivery of medical products. By switching to propane autogas, the company’s fleet is expected save more than $3,000 per vehicle, burn 48,000 fewer gallons of gasoline and potentially eliminate more than 930,000 pounds of carbon dioxide from its yearly carbon footprint.

“We can’t take chances when we are delivering products that are critical to people’s lives,” said A.J. Filippis, president of Wright & Filippis. “We have to make sure our vehicles are reliable, and we have that comfort level by utilizing propane autogas to power them.” He continued by noting that these companies are “putting into play opportunities for other local companies” to take advantage of the technologies.

Todd Mouw, vice president of sales and marketing at ROUSH CleanTech added, “Propane autogas powered vehicles help reduce our dependence on foreign oil because 90 percent of U.S. propane supplies are domestic. We’re proud to develop new technologies that utilize alternative fuel sources to help fleet operators, such as Wright & Filippis, meet their goals of reducing both the operating costs and carbon footprint of their fleet.”

Avjet Biotech (ABI) is on the move again. Today they have announced negotiations are underway with BioJet International to form a strategic relationship. Avjet has developed small 10-15 million gallon per year refining systems and BioJet is an international supply chain integrator for biojet fuel and related co-products. The agreement gives BioJet the license to use Avjet’s patented RWR System to build aviation biofuel refineries from native feedstocks throughout the world.

“Our unique small distributive refining systems blueprint is perfectly matched to BioJet’s goal to increase international use of sustainable biofuel,” said Marty Oliver, president of ABI. “The refineries that BioJet will be able to place will help the aviation industry continue to find renewable sources of energy.”

Don Evans, chairman and CEO of ABI added, “The aviation industry continues to face increased regulations regarding emissions and demonstrated use of biofuel. BioJet’s use of the RWR System will increase the availability of aviation biofuel for commercial air carriers.”

Most recently, ABI completed a license agreement with Professor Roberts, who works in the biofuels program at NC State University. The partnership allows ABI to commercialize all patents and intellectual property related to Roberts’ work.

Mitch Hawkins, CEO of BioJet concluded, “We are committed to helping airlines increase their use of sustainable biofuel, and this technology will allow us to place refineries that will turn native feedstock into aviation biofuel. Avjet is one of the first companies to have the technology that allows for the creation of small, distributive refineries, and we are looking forward to implementing it at multiple locations world-wide.”

A biofuels researcher at UC Davis has been selected for a national career award from the National Science Foundation (NSF).

The early career development award was given to Tina Jeoh, a UC Davis assistant professor of biological and agricultural engineering. The award is worth $407,573 over five years and will support Jeoh’s studies of how microbial enzymes break down plant cell walls to release sugars for conversion to biofuels and other products. Jeoh is hoping to help the commercial development of next generation biofuels by discovering how cellulase enzymes break down cellulose.

“In nature, microorganisms produce many different enzymes that cooperatively release the sugars,” Jeoh said. “Our goal is to identify the mechanisms of these enzymes, and to learn to consistently reproduce their natural actions in a controlled setting on an industrial scale.”

Jeoh’s team is developing molecular-scale atomic force microscopy methods to analyze cellulase-cellulose reactions as they occur. The researchers will incorporate their findings into models that will help predict reaction outcomes in commercial settings.

Read more from UC Davis news.

The Grain Farmers of Ontario have proclaimed that the food versus fuel debate should be over with the release of a new report that says farmers can serve both markets.

The study on “Effects of Biofuels and Bioproducts on the Environment, Crop and Food Prices and World Hunger” they say “should put an end to the ongoing debate of whether the grain we grow should be used for food or fuel. We can and should do both.”

As farm yields climb and investments are made in farm production in the developing world, feeding and fueling the world can even be done cost effectively. “My corn yields have increased by 35 percent since I started farming in 1975,” says Don Kenny who farms just outside of Ottawa and is the chair of Grain Farmers of Ontario. “I am confident that my land will continue to be productive and that new products and technologies will ensure my family supplies our local livestock market and the ethanol plant down the road for many years to come.”

The study found that global grain production has increased by 1.5% per year over the past 20 years, more than the 1.1% per year food demands are growing, according to the Food and Agriculture Organization of the United Nations. “Quite frankly, it is a relief for us to learn that production of biofuels, like ethanol, here in Ontario makes such a positive contribution to our environment without any notable impact on overall food prices and the world’s ability to supply food,” says Barry Senft, CEO for Grain Farmers of Ontario.

Read the study here.

There are few people who know the biodiesel industry like Brad Albin, vice president of manufacturing for REG. Albin has been in the industry for more than 20 years – before many of us even knew what biodiesel was. Albin was on hand for the briefing and tour of REG’s Newton, Iowa biodiesel plant by USDA Ag Secretary Tom Vilsack and EPA Administrator Lisa Jackson. Vilsack is the former governor of Iowa and in this role, played an important part in growing Iowa’s renewable fuel industry. However, Jackson is much newer to the industry and she was very animated and engaged throughout the events.

Since Albin has such a colorful history with biodiesel, I first asked him how the industry has evolved over the past 20 plus years.

“Over the last ten years I have seen the industry go from a few different feedstocks such as soybean oil to using 30 to 40 different feedstocks all the way from the used cooking oil that comes from McDonalds or Burger King all the way to inedible corn oil that is now being produced on the back-end of an ethanol plant,” said Albin. “So the amount of feedstocks we use are reducing the price, the quality is outstanding and the industry is going forward at a great pace.”

Listen to my full interview with Brad Albin: The Changing Face of Biodiesel

Albin said that the future of the biodiesel industry is taking lower cost feedstocks that are inedible and changing those into biodiesel versus using higher cost refined oils. REG believes they have conducted the largest feedstock study ever. The study looked at emerging feedstocks such as camelina oil, to future feedstocks such as jatropha and algae. He is excited for the potential of algae, which REG was able to convert into biodiesel in their feedstock study. He explained where you get a certain amount of oil per acre from soybean or canola, there is the potential to get 10,000 times that much oil per acre with algae.

Albin said that you could see EPA Administrator Lisa Jackson’s eyes opening up quite a bit she saw the possibilities for feedstocks to be converted to biodiesel. This is key because confidence in the biodiesel industry is essential as the EPA continues to raise the fuel goals each year to meet the Renewable Fuels Standard (RFS2).

I asked Albin what the next step is for REG and he said it is to continue the path. “To push the envelop. Use new feedstocks. We’re building plants and upgrading plants all across the United States. It’s just continuing that effort. We need the support from everyone because its all about energy security. We’ve got these great renewable products that are a huge competitive benefit for the United States of America and I think if everyone gets on the same bandwagon it’s just a great thing.”

Click here to see photos from the USDA/EPA REG biodiesel plant briefing and tour.