Domestic Fuel

Some researchers say that, at current production levels, algae biodiesel is not a commercially viable product. But some algae advocates believe researchers might have some ulterior motives for coming to that conclusion.

One of the study’s authors, Dr. Peter Pfromm, a professor in Kansas State University’s department of chemical engineering, says that while they found that it’s possible to produce enough biodiesel to make it a net energy gain over the amount of energy that goes into the green fuel’s production, it won’t make money. In fact, he says the algae would have to produce perhaps three times the amount of oil it currently does in order for algae-for-biodiesel production to be economically feasible, and it would take a pond 11 square kilometers big just to grow enough algae for the green fuel to replace just .1 percent of this nation’s diesel use. Pfromm says the real work needs to go into boosting the level of oil output from the algae.

But But Barry Cohen, the executive director of the advocacy group, the National Algae Association, says Pfromm is not looking at real-world conditions, and Cohen says Pfromm’s assumption that the algae would be grown in open ponds is an old, out-dated technology, and most algae growers are using vertical photo bioreactors and fermenters. He also contends that algae researchers have a financial reason for not seeing algae commercialized as the U.S. Department of Energy is only funding research, not production, done on algae-biodiesel. He says that if researchers ever found a way to make algae-biodiesel commercially viable, that federal money for the research would dry up.

Pfromm says they received no outside money, especially no DOE money, for this project.

Hear more of what both men had to say here: Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.:

Protec Fuel is celebrating the opening of two new E85 stations in South Florida this week, one in Delray Beach and one in Cooper City.

“We are very pleased that our Gold Coast region will now have an additional two service stations featuring E85 alternative fuel. Reliance on domestic fuel rather than foreign fuel is one of our primary objectives,” said Christine Heshmati, Coordinator of the Florida Gold Coast Clean Cities Coalition.

The Sunoco station in Delray Beach will hold a ribbon cutting and press event beginning at 10:30 am with representatives from the Delray Beach Chamber of Commerce, local government, Protec Fuel, the Renewable Fuels Association and the Gold Coast Clean Cities Coalition. Following that, the station will feature a promotion offering E85 for Flexible Fuel Vehicles (FFVs) for 85 cents less than regular unleaded from 11 a.m. until 1 p.m. The Shell facility in Cooper City will have a press event at 3:30 pm with local dignitaries and company representatives and offer discount fuel for FFVs from 4 p.m. until 6 p.m.

“The owners of both stations are true entrepreneurs in their field, being the first to supply E85 to the public in both cities,” said Protec Fuel’s Managing Member, Todd Garner. “Florida has hundreds of thousands of flex-fuel drivers looking for choices with near record gas prices, and now thanks to Jesse Sims and Matthew Bernstein, they will have more,” added Robert White, Director of Market Development for the Renewable Fuels Association.

The blend of 85 percent ethanol and 15 percent gasoline can be used in over 9 million flexible fuel vehicles (FFVs) across the U.S.

Biofuels can provide up to 27% of world transportation fuel by 2050, according to a new report from the International Energy Agency (IEA).

The report says that “the widespread deployment of biofuels can play an important role in reducing CO2 emissions in the transport sector and enhancing energy security, when produced sustainably.”

With the transportation sector growing considerably, and demand for transport fuels rising globally, the IEA assesses biofuels – liquid and gaseous fuels derived from biomass (organic material derived from plants and animals) – as one of the key technologies to reduce CO2 emissions and reduce dependency on liquid transport fuels. The report shows how global biofuel consumption can increase in a sustainable way – one in which production of biofuels brings significant life cycle environmental benefits and does not compromise food security – from 55 million tonnes of oil equivalent (Mtoe) today to 750 Mtoe in 2050; this would mean that the global share of biofuel in total transport fuel would grow from 2% today to 27% in 2050.

According to Bo Diczfalusy, the IEA’s Director of Sustainable Energy Policy, this means that biofuels “will eventually provide one fifth of emission reductions in the transport sector.”

Bliss Baker with the Global Renewable Fuels Alliance (GRFA) says the report’s findings confirm that biofuels can reduce GHG emissions and improve energy security without jeopardizing food security, “(The) report reaffirmed the GRFA’s long standing principle that through the development of new technology and refined industry practices, biofuels can help secure the world’s energy future,” said Baker. “The GRFA also endorses another key IEA action to guarantee funding and support so that advanced biofuel technologies can reach commercial production in the next 10 years and demonstrate their ability to achieve cost and sustainability targets.”

Read the full report here.

The American Coalition for Ethanol (ACE) has teamed up with BBI International to better serve the ethanol industry as part of the International Fuel Ethanol Workshop & Expo (FEW).

In recent years, ACE paired its annual conference with a trade show. This year, to better serve ACE members, ACE will partner with BBI as a Supporting Organization for the FEW, allowing ethanol industry suppliers and plant operators to concentrate on one trade show, and giving ACE the opportunity to focus its efforts on continuing to provide a valuable conference event. ACE will continue to hold its annual conference separate from FEW.

“ACE is proud to partner with BBI and pleased to support one industry exposition at the FEW,” said Brian Jennings, Executive Vice President of ACE. “Both organizations have a longstanding history of offering first-class events to the ethanol industry, and we believe this partnership will continue to strengthen the industry as a whole.”

The International Fuel Ethanol Workshop & Expo will take place June 27-30, 2011 in Indianapolis, IN and the ACE Conference will be held August 22-24, 2011 in Des Moines, IA.

There are advanced biofuels on the horizon and one such fuel will be algae fuels produced from the waste streams of a first generation corn-ethanol plant. In the future, many believe that more co-located biofuel refineries are on the way and the model will be the Green Plains Renewable Energy (GPRE) / BioProcess Algae plants. BioProcess Algae is in the final stages to commercialization and last week dedicated its Grower Harvester bioreactors and announced plans for its algae farm. On hand for the event was USDA Ag Secretary Tom Vilsack, who gave the keynote speech during the event.

Vilsack stressed several key issues and one was the need to revitalize rural America and create innovative and creative jobs to bring our bright, young people back home. Today, 16 percent of our country’s population comes from rural areas like Shenandoah, Iowa, the home of the biofuels project, and 44 percent of our military comes from these areas.

“I am a great believer in American ingenuity,” began Vilsack. “I’m a great believer in the capacity of the American farmer and rancher to literally meet any challenge.”

Vilsack believes that projects such as BioProcess Algae will spread across the country and rural communities. “There’s phenomenal innovation and phenomenal growth opportunities to be able to do something for your country that needs to be done and that’s to wean ourselves off of our dependence on foreign oil,” continued Vilsack. “It’s an opportunity for us to create jobs in small towns. It’s an opportunity for American agriculture to continue to respond to the challenges it has met time after time in the country.”

Vilsack highlighted that rural America is the source for our food, most of our water and an ever increasing amount of our fuel. The algae component of the biofuels project uses carbon dioxide, waste heat and waste water from the corn ethanol plant, recycling nutrients and resources in a more efficient way. Both the corn ethanol process and soon the algae fuel process will provide food, feed and fiber.

There are four components that Vilsack believes are the secret for success in revitalizing the rural economy: significant investment dollars, innovation, networking, and a sense of place. Vilsack said these are the reasons why the USDA was supporting this project.

He concluded, “I want to congratulate the folks at BioProcess Algae and I want to congratulate the ethanol industry and the advanced biofuels industry for coming together in this operation because it’s a model for the rest of the country and it sends a strong unmistakable message the ethanol industry and the biofuels industry is here to stay and is going to play an important role in shaping not just opportunity for America but very specifically a wonderful opportunity, an unlimited opportunity for the bright young people who want to live, and work and raise their family in the greatest part of America.”

Click here to view the Flickr photo album from the BioProcess Algae/GPRE Grower Harvester event.

The U.S. military plans to up its share of biofuels, including biodiesel and ethanol, by nearly a billion gallons over the next few years.

But this article from Biofuels Digest says officials warn that won’t be enough to be the sole driver in the market:

Mark Iden of the Defense Logistics Agency confirmed that the US government proposed to purchase several hundred million gallons of drop-in advanced biofuels by 2016, citing an expected demand of 336 million gallons from the Navy and 587 million gallons from the Air Force.

But Iden, likened the government, although a large customer, to a large commercial airline in terms of purchasing power, and cautioned biofuels producers that the Department of Defense would be a large buyer but not in enough quantity to “singlehandedly drive a market.”

Meanwhile, Navy officials say they will be undertaking a “biorefinery development analysis” to gauge the Navy’s participation in green fuels development.

As we sit on the eve of Earth Day (Friday, April 22, 2011), our friends at the National Biodiesel Board have pointed out several tourist destinations that are friendly to the environment by using the green fuel biodiesel:

“Green tourism is more popular than ever, and biodiesel’s ease-of-use and greenhouse gas reductions have made it a big part of that movement,” said Joe Jobe, National Biodiesel Board CEO.

Read the rest of this post…

A new report from the Iowa State University Center for Agricultural and Rural Development (CARD) revisits history to look at the impact of ethanol and ethanol subsidies on corn prices.

The analysis by Bruce Babcock and Jacinto Fabiosa uses a computer model to “rewrite history” by re-creating what actually happened in agricultural markets then removing government incentives to produce and consume corn ethanol. To further isolate the effects of ethanol on commodity prices, they also ran a scenario where ethanol production was frozen at 2004 levels.

In summary, this is what they discovered:

First, the general pattern of corn prices that we saw in the historical period—increasing prices in in 2006 and 2007, a price spike in 2008, followed by a sharp price decline in 2009—would have occurred without ethanol subsidies or even if corn ethanol production had not expanded. Second, investor fervor for corn ethanol in 2005, 2006, and 2007 would have occurred even without subsidies because a combination of cheap corn, a phase-out of MTBE, and higher crude oil prices made ethanol profitable. Thus, ethanol production would have expanded quite rapidly even without subsidies.

Using the 2004 corn price of $2.06 per bushel as a reference, actual corn prices increased by an average of $1.65 per bushel from 2006 to 2009. Only 14 cents (8%) of this increase was due to ethanol subsidies. Another 45 cents of the increase was due to market-based expansion of the corn ethanol industry. Together, expansion of corn ethanol from subsidies and market forces accounted for 32% of the average increase that we saw in corn prices from 2006 to 2009. All other market factors accounted for 68% of the corn price increase.

Renewable Fuels Association Vice President of Research and Analysis Geoff Cooper provides some thoughts on the CARD analysis in a new E-xchange blog post.

As gasoline prices edge toward $4 a gallon, ethanol production is declining.

According to the latest report from the Energy Information Administration, ethanol production averaged 856,000 barrels per day last week, down almost five percent from the previous week to the lowest level in six months. Production has been steadily declining for the past four weeks due to a number of factors, including higher corn prices. Ethanol plants used about nine million less bushels of corn last week than the latest USDA forecast average.

The higher gasoline prices also have an impact on ethanol production, since nearly all gasoline sold in the country is blended with ethanol. As gas prices go up and people cut back on consumption, demand goes down, which in turn lowers demand for ethanol.

May 27 is the deadline for proposals to be submitted under USDA’s Biomass Crop Assistance Program (BCAP).

The program, which is administered by USDA’s Farm Service Agency (FSA) provides incentives to eligible farmers, ranchers and forest landowners for the establishment and production of biomass crops for heat, power, bio-based products and biofuels. FSA Acting Administrator Val Dolcini announced the deadline for submitting project area proposals. “The nation that harnesses the power of clean, renewable energy will be the nation that leads the 21st century. BCAP can help rural communities save money, create jobs and improve air quality while reducing the demand for fossil fuels,” said Dolcini. “I encourage all those interested in participating in this program to contact their Farm Service Agency (FSA) state office for details.”

BCAP project areas are specific geographic areas where producers grow eligible biomass crops. Producers then receive annual payments for growing those crops. To be considered, proposals must be submitted to the applicable state office by close of business, May 27, 2011. More information can be found on the FSA BCAP web page.

The U.S. Department of Energy has released a national ranking of Clean Cities programs that have had the most impact in the reduction of gasoline use. At the top of the list is the Saint-Paul-based Twin Cities Clean Cities Coalition. The group has been instrumental in a reduction of 135,175,133 cumulative gallons of gas displaced between 2005-2009. The release was actually part of a move by the DOE to help accelerate the deployment of electric vehicles (EVs). As part of the program, Energy Secretary Steven Chu announced the availability of $5 million in new funding for community-based efforts to deploy electric vehicle (EV) infrastructure and charging stations.

“The Department of Energy’s Clean Cities initiative is bringing together local governments and industry to demonstrate the benefits of advanced technology vehicles and help communities use less oil and gasoline to power their vehicles,” said Secretary Chu. “The initiatives announced today are just the latest steps in our broader efforts to reduce America’s dependence on oil, improve our energy security, and save families and businesses money.”

Much of Minnesota’s efforts to reduce gas use has focused on the use of higher blends of ethanol including E85. The state has more than 360 E85 pumps and was the first to pass a 5 percent biodiesel blend mandate. The cities of Minneapolis, Saint Paul and Brooklyn Park were early adopters of alternative fuel vehicles, as were Hennepin, Dakota and Ramsey counties. The state fleet includes 2,500 flex fuel vehicles that can use E85 or gasoline that used nearly 1 million gallons of E85 in 2010.

“We are very pleased to see the hard work of our many partner organizations reflected in our number one ranking,” said Lisa Thurstin, manager of outdoor air programs for the American Lung Association in Minnesota, which administers the Twin Cities Clean Cities Coalition. “The ranking was determined based on the amount of E85, biodiesel, natural gas, propane and other cleaner-burning alternative fuels reported by each Clean Cities coalition to the Department of Energy.”

The EV program was announced during a call with Chu, Transportation Secretary Ray LaHood, Colorado Governor John Hickenlooper, Tucson Mayor Bob Walkup, and St. Paul Mayor Christopher Coleman.

The Advanced Biofuels Leadership Conference is underway in Washington, D.C. and more than 400 senior level executives are in attendance to learn more about the trends in the advanced biofuels industry. During the Conference, the Biotechnology Industry Organization (BIO) released a new policy white paper that determined the Renewable Fuels Standard (RFS2) provides both stable market support and a pricing system (through Renewable Identification Numbers or RINs) that are necessary to attract private investment in the advanced biofuels industry. The paper is also being published this month in the journal, Industrial Biotechnology.

“The Renewable Fuel Standard, as it has been implemented by the Environmental Protection Agency, can provide the long-term, stable, market-based government policy mechanism that advanced biofuel producers and investors have been looking for. It provides both and assured market and a significant degree of price certainty for cellulosic and advanced biofuels, which can significantly mitigate the capital risk associated with commercialization of new technologies,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.

Erickson notes that the RFS is very effective for incentivizing biofuels innovation. He said that with this policy, companies have already made significant investments in research and development. He continued by highlighting the amount of good jobs and positive economic opportunities that the industry provides and then went on to stress that federal support must continue in order for the industry to realize commercial scale production levels. Today, many of these investments are seeing fruition in that several companies in the industry are beginning to make major commercialization announcements.

“Access to capital remains the biggest challenge for the industry, especially as high oil prices threaten to plunge the country into another recession. The RFS must work in coordination with other federal programs administered by the USDA and DOE to provide the industry, its investors and obligated parties needed stability and forward-looking guidance. This paper should reassure capital markets that advanced biofuels represent a sound opportunity. And coupled with the recent USDA loan guarantees and DOE grants the advanced biofuels sector should experience a surge in 2011 and beyond,” concluded Erickson.

You can view photos from the Advanced Biofuels Leadership Conference in my Flickr photo album.

Researchers at Iowa State University have developed a simulator that allows them to replicate all the functions of biodiesel and ethanol plants.

According to this article from the school, the I-BOS (the Interactive Biorefinery Operations Simulator) will help students in Iowa State’s biorenewable resources and technology program learn about biofuel production, as well as helping the biofuel industry train employees:

“This could be the major component of a curriculum for teaching biofuels operators how to run a plant,” [David Grewell, an associate professor of agricultural and biosystems engineering] said. “It’s like a flight simulator for pilots.”

The virtual control room is now written to simulate the operation of ethanol and biodiesel plants. It keeps track of energy consumption, production efficiency and fuel quality. It also features interactive video clips from real biofuel plants that give students a good look at the entire production process.

Grewell says the simulator will also help operators in case of an emergency at the plant.

A company that develops 10-15 million gallon per year refining systems has signed a deal with North Carolina State University to use the school’s technology for producing biofuels from triglycerides (fats) and for producing products from genetically modified marine microalgae.

Avjet Biotech, Inc. (ABI), parent company of Red Wolf Refining, will use the technology to make aviation biofuels:

“We are delighted to have completed a license agreement with NC State following several months of discussions with the university on its advanced biofuel research,” said Marty Oliver, president of ABI. “We anticipate a major biofuel refining model will be the result of this landmark deal.”

“Following talks with the management of Avjet Biotech, I am happy to announce that we have arrived at an agreement that favors all parties involved,” said Dr. Terry Bray, senior licensing associate at NC State’s Office of Technology Transfer. “On behalf of the university, we look forward to our continuing involvement with Avjet.”

Red Wolf Refining uses a thermal catalytic process to refine any triglyceride into aviation biofuels and promotes itself as “dedicated to supporting the U.S. military in its goal to eliminate dependence on foreign oil.”

Our latest ZimmPoll asked the question, “What causes higher food prices?” Most people responding seem to believe it’s a combination of factors – 47%. That’s followed by higher gas/energy costs at 23%, speculators at 18%, ethanol at 9% and weather at 3%. I wonder how the response would compare to an audience for a general news website like Fox or CNN. It sure doesn’t look like biofuels like ethanol are considered to be at fault. However, if you consider it to be a combination of factors, what would those be? Feel free to leave a comment.

Our new ZimmPoll is now live and asks the question, “How do farmers compare in social media use?” Let us know what you think and thanks for your your participation.

And if you have any questions you want to suggest for future ZimmPolls please let us know.

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