Domestic Fuel

Biodiesel is back, but it needs the tax credit to keep it going.

At the 4th International Biomass Conference and Expo, Joe Jobe with the National Biodiesel Board, said they are very optimistic about the state of the industry right now.

“Our plants are coming back on line and we’re very bullish,” Jobe said. “We believe that we’re going to have the best year in our industry’s history this year.” Jobe says their top priority is implementation of the RFS2 and a major component of that is seeing the biodiesel tax credit extended at least another year. “Last year the tax credit lapsed for 11 months and that had a significant negative impact on the industry,”

Jobe says the debate over land use continues to have an impact on the industry. “Land use and indirect impacts have really only been applied to biofuels, no other fuels, not even the fuel that it’s been compared to, baseline petroleum fuel,” he said.

Listen to or download my interview with Joe Jobe here: Joe Jobe NBB

NBB will be holding a webinar on the topic of biodiesel’s impact on the food supply and land use May 24. “Vantage Point: Views on Food, Fuel and Land Use” will feature insights from two national land use experts Dr. Stephen Kaffka with the U.C. Davis Department of Plant Sciences and Director of the California Biomass Collaborative and Keith Kline of Oak Ridge National Laboratory.

The 60-minute webinar starts at 12:00 noon Central time, on Tuesday, May 24 and is open to anyone with an interest in learning the reality behind food, fuel and land use. Register here.

The first AMP electric Mercedes Benz, manufactured in Cincinnati, OH, has been delivered to Gisli Gislason, Chairman and CEO of Ireland-based Northern Lights Energy (NLE). This is the first in a contract worth $100 million to bring EV to Iceland. The car was “electrified” by AMP Electric Vehicles, a subsidiary of AMP Holding. This is the first EV delivered as part of a contract signed on April 14, 2011 with a larger volume of electric sport utility vehicles to be produced beginning in September.

“The demand for SUVs is very high in Iceland at approximately 35% of new vehicle sales,” said James Taylor, CEO AMP. “Our AMP Electric Mercedes ML SUV fits NLE and Iceland’s needs perfectly. The vehicle comfortably fits five people, and offers the efficient performance of 100 miles per charge. We are very pleased to have presented the first vehicle, and look forward to supplying the rest of this 1,000 vehicle agreement.”

NLE believes Iceland is a very suitable venue for EVs because most of the country’s electricity is derived from a combination of hydro power and geothermal resources, making the electric supply extremely economical versus expensive imported gasoline.

Gisli Gislason, Chairman and CEO of Northern Lights Energy, added, “We were very excited to receive and drive the AMP Mercedes ML EV today. The vehicle drove extremely well, and I feel will fit perfectly in our Iceland program. We have fifty Icelandic companies and government offices, including the Ministry of the Environment, signed up to host electric vehicle charging and to convert their fleets to 100% electric vehicles and their expectations are high. In my opinion, this AMP EV will meet and exceed all expectations.”

Although the first 1,000 EVs will all be earmarked for Iceland, there are plans to expand the sales territory throughout the Nordic region to include Finland, Sweden, Norway, Denmark, and the Faroe Islands.

I just returned from Toronto, Canada after attending the 2011 BIO World Congress (great stuff and check back as I post a series of audio interviews from the conference) and the country is feeling the impacts of rising gas prices. Consumers in Central Canada have seen gas prices rise nearly 30 cents almost overnight despite the drop in oil prices and many consumers are asking the question of who to blame. The front page article in The Globe and Mail on Wednesday, “The gas price puzzle,” stated that gas prices are higher now than in 2008 when a barrel of oil hit a record high of over $150 a barrel.

According to the article a “confluence of events” has caused the prices to skyrocket. “They include an unusual price discrepancy between European and North American oil and below average gasoline supplies in the U.S., which drives up whole-sale prices that also affect Canada.” Other factors include geography and bad weather south of the border.

Don’t let out sigh of relief that biofuels escaped blame. They didn’t and today a coalition of Canadian on-road diesel fuel associations are raising concerns that the biodiesel mandate set to go into effect in Canada on July 1st will actually cause gas prices to go even higher.

According to the coalition, which includes the Canadian Trucking Alliance (CTA), Motor Coach Canada (MCC) and the Owner-Operator’s Business Association of Canada (OBAC), the Canadian government’s own regulatory impact analysis statement predicts the biodiesel mandate will cost taxpayers $2.5 billion over the next 25 years and increase pump prices for diesel fuel. The report also believes fuel economy will decrease and any greenhouse gas emission reductions will be negligible.

To support their point, the coalition pointed the finger at Massachusetts and New Mexico’s biofuel mandates that allow for the suspension of the regulation should the price of diesel fuel be more than conventional diesel fuel. In addition, the coalition says that U.S. state biodiesel mandates have raised diesel prices anywhere from 1-8 cents per gallon, even with subsidies.

The coalition also cited other fears.
Read the rest of this post…

The Air Force Research Laboratory at Wright Patterson Air Force Base is testing jet fuel derived from algae produced by Dublin, Ohio based Independence Bio-Products (IBP). The algae was grown in open ponds in Ohio and harvested with the company’s patent pending harvest system. The tests are part of federally funded project to examine Algae to Fuel (ATF) processing technologies. According to IBP founder and President Ron Erd, the testing of the jet fuel sample has confirmed that the composition of the fuel is similar to fuels derived from other feedstocks including sobyeans, jatropha or camelina. This feedstocks are also being tested as jet fuel replacements.

Ohio is in the process of expanding the states “algaculture” industry. Three organizations are jointly working together on the project including the Ohio Aerospace Institute (OAI) of Brook Park, the Edison Materials Technology Center (EMTEC) of Dayton, and the Center for Innovative Food Technology (CIFT) of Toledo along with several other industry and university collaborators, including IBP. Three main areas are being researched:

1) selection of algae suitable for optimizing oil production based on climate factors
2) development of cultivation systems (growing locations, harvesting, dewatering, and separation techniques)
3) cultivation strategy (algae harvesting, processing into value-added products, etc.)

IBP has a proprietary technology where algae is cultivated in raceway ponds in Belmont County. Some of the ponds were heated using IBP’s patent pending system demonstrating operations throughout the winter. The algae was subsequently separated from water and dried followed by extraction and purification of the algae oil. The algae oil was upgraded to fuel by Applied Research Associates (ARA) of Panama City, FL using a catalytic hydrothermolysis (CH) process to convert the plant triglycerides to pure hydrocarbons very similar to their petroleum counterparts.

“The IBP development adds to the growing evidence that aviation fuel may be derived from domestically grown crops independent of foreign petroleum sources,” said Dr. Joseph Hager, Director Technology Transfer Programs. He continued by saying oil derived from Ohio-grown algae cultivated in open ponds demonstrates that this future fuel-producing crop may be sited in the harsher winter climates of the Midwest.

Waste Management (WM) has announced they have invested in Agnion Energy, a company developing gasification technology. WM joins other company investors including Kleiner Perkins, Caufield Byers, Munich Venture Partners, and Wellington Partners. Agnion’s allothermal gasification technology converts solid biomass feedstock into a hydrogen and carbon monoxide synthetic gas (syngas) with high heating value. The syngas can then be converted into liquids, hydrogen and methanol di-methyl-ether and or as a natural gas substitute using combined heat and power applications.

“Waste Management wants to maximize the value of the materials it manages,” said Tim Cesarek, managing director of Organic Growth at Waste Management. “Agnion’s technology complements Waste Management’s advancement of thermo-chemical conversion technology platforms and could enhance our suite of waste processing options.”

According to Agnion, their Heatpipe-Reformer design provides a flexible, small-scale on-site gasification technology solution with a relatively low upfront capital cost. The technology is ideal for schools/universities, warehouses/distribution centers, shopping malls, hotels, and hospitals.

“We view the fact that North America’s largest residential recycler and leading waste and environmental solutions provider has decided to invest in Agnion and our Heatpipe-Reformer technology as a tremendous honor and a vote of confidence,” said Agnion CEO, Dr. Stephan Mey. “Our first commercial biomass gasification plant is currently under construction in the Bavarian town of Grassau and we plan to build other plants in Europe and North America.”

The Bay Area is the home of three new electric vehicle (EV) charging stations. 350Green, in partnership with Simon Property Group, will install one EV charging station at the Stanford Shopping Center, one at Santa Rosa Plaza and one at Coddingtown Mall. These are the first three major shopping areas to offer EV charging in the Bay Area while consumer shop.

“We are thrilled to offer our shoppers easy and convenient access to charging stations, demonstrating our ongoing commitment to sustainability,” said Kelly Hartsell, West Regional Vice President of Simon Property Group. “Our customers expect us to offer them goods and services that reflect their values. Known for being environmentally and socially conscious, the Bay Area is the perfect location to introduce this to our shoppers.”

The “Level 2″ charging stations are strategically located in mall parking lots. Shoppers at Stanford Shopping Center will have access to two chargers located in the Lower Level Parking Deck between Macy’s and Bloomingdale’s. At the Coddingtown Mall, a “Level 2” charging is located at the North Main Entrance and in Santa Rosa Plaza’s the EV charging station will be located on its third level parking deck. The installations will be complete in the next 30 days.

Simon is working with 350Green for its Bay Area roll-out. The self-serve charging stations have the capability to “top off” or partially charge a customer’s electric vehicle in a 90 to 120 minute time frame, allowing shoppers to leave their vehicles at the charging station while they are shopping or dining. Charging will be free during an introductory time period, after which 350Green will offer various pricing plans.

“Our partnership with Simon is an important part of expanding our network of EV charging stations in convenient locations throughout the Bay Area,” said Mariana Gerzanych, 350Green’s co-founder and CEO. “In doing so, we help advance the EV revolution by making it easier and more convenient to charge up an EV than to fill up a car with gas.”

The AE Biofuels ethanol plant in central California is back in production.

Subsidiary AE Advanced Fuels Keyes has restarted operations at the 55 million gallon per year ethanol production facility located in Keyes, California and hired about 50 full time employees. The company announced in March it was restarting the plant, which has been closed since 2009.

The original $130 million construction and commissioning of the plant was completed in November 2008 by Cilion, Inc. In early 2009 the plant was closed due to technical and market issues. AE Keyes took possession of the facility under a project agreement with Cilion in March 2010, signed a facility lease for up to five years, and funded $8 million of financing to retrofit and restart the plant.

AE Keyes was recently awarded a $1.88 million matching grant from the California Energy Commission (CEC) to accelerate the commercial implementation of AE Biofuels’ patent-pending, enzyme based, cellulosic ethanol production technology. The integrated cellulose/starch pre-commercial facility will be located near the 55 million gallon per year commercial ethanol facility. The CEC grant will enable the company to build upon prior enzyme optimization work conducted at its cellulose/starch pilot facility in Montana which was opened in 2008, and will help the State of California achieve the goals of the Low Carbon Fuel Standard (LCFS).

The Iowa Corn Growers got competitive with Indy today at the Iowa Speedway. In the photo Indy car driver Ryan Hunter-Reay competes on pedal tractors with Dick Gallagher, Iowa Corn Promotion Board Chairman. Waving the green flag to start is Shannon Textor, Iowa Corn Growers Market Development Director.

Today was a promotional event that included Indy Car drivers, Iowa corn growers and representatives from the University of Iowa and Iowa State University. It was all done to promote the upcoming Iowa Corn Indy 250. They paired up into teams and ran through a course of various events that included the pedal tractors, cornhole toss, corn shucking, remote controlled race cars and more. We held the event inside the garages because some rain moved through.

I spoke with Kevin Rempp, Iowa corn grower and currently Secretary/Treasurer for the Iowa Corn Promotion Board. He says that the promotion with the Iowa Speedway and Indy has been a great partnership. The Indy cars are still running on ethanol and he’s proud to grow their fuel.

You can listen to my interview with Kevin here: Kevin Rempp Interview

By the way, Ryan beat Dick in the pedal tractor race just in case you were wondering.

You can find photos from today’s event here: Iowa Corn “Join The Team” Indy 250 Promotion Photo Album

Growth Energy today welcomed ethanol supporters from Missouri, Minnesota and North Dakota to Washington, D.C. for a series of meetings with members of Congress to raise awareness about ethanol and its role in keeping gas prices down, strengthening our nation’s energy security and creating jobs in rural communities.

The Missouri delegation includes Greg Krissek and Monique Garcia from ICM and Lifeline Foods in St. Joseph, Steve Murphy and Grover Gamm of POET Biorefining in Macon and Richard Hanson of Show Me Ethanol in Carrolton. The Minnesota delegation includes Rick Mummert of POET Biorefining in Glenville, Richard Eichstadt of POET Biorefining in Preston, and Chris Oehler of POET Biorefining in Lake Crystal. Growth Energy also welcomed Russ Newman, the CEO of Tharaldson Ethanol in Casselton, N.D. All have plans to visit with representatives in Congress from their areas.

“Ethanol creates badly needed jobs in rural America, provides an excellent return on taxpayer investment by keeping gas prices down, and contributes to our rural economies, and it is crucial that our representatives in Washington understand that,” said Krissek, who adds that the meetings will focus on Growth Energy’s Fueling Freedom proposal.

Despite flooding of farm land and delayed planting in many areas, USDA is forecasting a record corn crop for this year.

The World Agricultural Supply and Demand Estimate for May represents USDA’s initial assessment of U.S. and world crop supply and demand prospects. The report projects corn production for 2011/12 “at a record 13.5 billion bushels, up 1.1 billion from 2010/11 as a 4.0-million-acre increase in intended plantings and a recovery from last year’s weather-reduced yields boost expected output. The 2011/12 corn yield is projected at 158.7 bushels per acre, 3.0 bushels below the 1990-2010 trend reflecting the slow pace of planting progress through early May.”

The report increases projected corn use for ethanol by 50 million bushels “reflecting slow expected growth in gasoline consumption and continued export demand for ethanol in the coming year.” Ethanol exports set another record in March, as 84 million gallons of product (denatured and undenatured, non-beverage) were shipped to destinations around the world, according to the latest data from the USDA Foreign Agricultural Service. Through the first three months of the year, the U.S. has exported 201 million gallons of ethanol, equivalent to half of the amount exported in all of 2010 and almost twice the amount exported in 2009. Year-to-date exports have been equivalent to about 6% of total U.S. production.

Renewable Fuels Association Vice President of Research and Analysis Geoff Cooper says that export markets present real demand opportunities that the ethanol industry will continue to explore. “Artificially constrained markets in the U.S. and fears of instability in the policies that impact domestic ethanol production and use are forcing ethanol producers to seek other markets,” he said.

March was also a strong month for exports of the ethanol by-product distillers grains. Shipments totaled 686,098 metric tons, up 11% from February, but down 2% from March 2010 levels.

Sapphire Energy and The Linde Group have announced a multi-year partnership to co-develop a low-cost system to deliver carbon dioxide (CO2) to commercial-scale, open-pond, algae-to-fuel cultivation systems.  Linde, who is a leading supplier of CO2 in the US, will work with Sapphire to reduce the costs incurred when delivering CO2 for commercial-scale open pond algae cultivation. In addition, Linde will supply the CO2 for Sapphire’s commercial demonstration biorefinery in Columbus, New Mexico.  A single commercial algae-fuel production facility is estimated to require around 10,000 metric tons of CO2 per day, which is comparable to approximately 30 percent of the current merchant market for CO2 in the U.S.

“Producing fuel by algae using CO2 from large emitters like power stations and chemical plants is a very promising way of reducing greenhouse gas emissions,” said Dr. Aldo Belloni, member of the Executive board of Linde AG. “We are delighted to be a key partner in Sapphire’s algae-to-biofuel activities. This is one of the many examples for innovative ‘clean energy’ projects that Linde is involved in.”

Sapphire has been developing propriety technology throughout the algae-to-energy value chain including biology, cultivation, harvest, extraction. Focused on green crude drop-in fuels such as jet, diesel and gasoline, Sapphire’s algal biofuels will be compatible with current infrastructure and engines. Algae is a good source of feedstock for biofuels and biochemicals in part because it grows in salty, non-potable water, uses lands not suitable for agriculture and requires only sunlight and CO2 to grow. Sapphire’s technology represents an approximate 70% reduction in lifecycle carbon emissions compared to petroleum-based equivalents.

“The need for new sources of fuel as dependency on oil becomes more and more problematic is clear. To produce algal oil, or ‘green crude’ at the scale to meet growing demand, we need great partners who can supply sufficient and low cost access to CO2,” added Cynthia (C.J.) Warner, president, Sapphire Energy. “Linde has unequaled knowledge in how to efficiently manage the distribution process. Through this collaboration, we are closer to delivering a domestically produced, cost efficient source of algae-based green crude.”

I had the opportunity to visit Sapphire Energy on my San Diego Algae Tour last fall. Click here to see photos.

FUJIFILM has completed the installation of a 483,391 kilo-watt hours solar power system at its branch office in Hawaii. The installation was completed by 21st Century Technologies and is comprised of 1,455 Conergy PowerPlus modules. The solar power system will produce the equivalent amount of energy needed to power 66 average sized homes per year and is the first Conergy PowerPlus plant installed in North America and one of the top 10 largest solar power systems in Oahu.

“This project began in response to a corporate mission of energy conservation and greenhouse gas reduction, but it also will help us realize significantly reduced energy costs. The combination of Conergy PowerPlus modules, along with 21st Century’s unique proposal, will make us virtually energy independent,” said Ray Hosoda, President and CEO, FUJIFILM North America Corporation. “With the urgency and concern about saving the environment and resources, this project is especially important to FUJIFILM as we do our part in helping to preserve the lush, beautiful surroundings in which we work and live.”

The company will both save money on its current energy bill as well as utilize the local utility’s net energy metering program. Typically, these types of programs allow the extra power generated by the solar system to be sold back to the grid. The FUJIFILM installation is the first project under Conergy and 21st Century Technologies new strategic partnership.

“Hawaii is a world leader in alternative energy solutions, especially solar,” said Myron Thompson, CEO of 21st Century Technologies. “We chose the Conergy PowerPlus module because of its unique engineering and durability profile. We needed something really tough to stand up to Hawaii’s powerful winds and salt air. The Conergy PowerPlus panel fit the bill exactly. It has one of the best warranties on the market, and that was critical. We’re really excited about our new partnership with Conergy and the opportunities ahead.”

Carl Campagna, Conergy’s Regional Account Manager in Hawaii and Oahu resident, added, “Since Hawaii is leading the country in solar energy with the goal of reaching 70% of its energy needs through clean energy sources by 2030, Conergy is excited about our mutually-beneficial relationship with 21st Century Technologies. We are looking forward to experiencing future growth on the island.”

Canada’s first lignin plant is operational and producing lignin for Canadian researchers according to an announcement made during the 2011 BIO World Congress. The plant is owned and operated by FPInnovations who is working in partnership with the Centre for Research and Innovation in the Bio-Economy (CRIBE), Natural Resources Canada (NRCAN) and AbitibiBowater. Lignin is a residual substance derived from the pulping process and in the biofuels process is broken down and converted into sugars, and ultimately biofuel.

The program partners are in the process of developing a black liquor and lignin evaluation centre in Thunder Bay, Ontario. At the core is the lignin demonstration plant that ties directly into the black liquor stream of AbitibiBowater’s Thunder Bay kraft pulp mill. When fully operational, this one of its kind demonstration plant will produce up to 100 kg of lignin per day, which will be shipped to a network of R&D labs across Canada that are developing novel uses for wood products. Also located in this facility is a lignin characterization lab.

Lakehead University and its Biorefining Research Initiative will be closely linked to the ongoing research and will be training students and postdoctoral fellows at the facility.

“It is with cutting‐edge technologies and strong partnerships such as this one that FPInnovations is contributing to building the future of forestry in Canada,” said Pierre Lapointe, President and Chief Executive Officer for FPInnovations. “The strong ties to Lakehead University are key to keeping technology and knowledge in the North. This only strengthens Lakehead’s Biorefining Research Initiative and other related science programs by creating linkages with labs across Canada.”

The is a huge potential market for lignin‐based products. It can be used as a green alternative to many petroleum‐derived substances, such as fuels, resins, rubber additives, thermoplastic blends, nutra‐ and pharmaceuticals, and more.

Doug Murray, General Manager of AbitibiBowater’s Thunder Bay Operations, added, “The lignin evaluation plant provides us an opportunity to move wood‐based products beyond traditional markets. We are pleased to have this innovative lab at our mill site and look forward to continued progress. We feel very fortunate to be part of this initiative.”

View pictures from the 2011 BIO World Congress in my flickr photo album.

I am not surprised by the results of our latest ZimmPoll. The question was, “Do you believe in man made climate change?” If this doesn’t show a divided viewpoint then I don’t know what does. We just wanted a simple yes/no without trying to get into arguments over what science is better than another. Fifty two percent said yes and forty eight percent said no. This also attracted one of the highest numbers of responses to a ZimmPoll. So, I just wonder why there seems to be such a big push to create legislation and regulations when there is so much disagreement on the issue. What do you think?

Our next ZimmPoll is now live and asks the question, “How many apps on your smartphone?” They don’t have to be “ag” apps, just any apps. I can tell you I’ve got more than 90 on my iPhone but I’m doubting I’m normal.

Feel free to post a comment on either the results of our last poll or on the new one. What smartphone apps are your favorites and why. Thank you for participating.

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.

Florida’s annual Farm to Fuel Summit has been postponed.

Florida Commissioner of Agriculture Adam Putnam sent out an announcement today saying that a bill passed during the recently concluded Florida legislative session prompted the decision.

The Florida legislature approved the transfer of the State Energy Office from the Executive Office of the Governor to the Department of Agriculture and Consumer Services effective July 1, a move which is currently awaiting the governor’s signature. “In light of this potential transfer, we have decided to postpone the 2011 Farm to Fuel Summit,” Putnam said. “If the transfer is approved, we will immediately begin to plan a conference that takes a more comprehensive approach to energy policy in Florida and reflects the expanded role of the Department. We expect this conference will be scheduled for the fall of 2011.”

The 6th annual Farm to Fuel Summit had been scheduled for August 3-5 in Orlando.