Domestic Fuel

A new tool is now available for biofuel managers and research development professionals to help solve innovation challenges. Elsevier Biofuels is an unique online search and discovery tool that gives companies access to the highest level of scientific, industrial and commercial information that can be utilized by companies to assist them in solving problems or make key decisions.

“BioEnergy RD&D (Research, Development and Demonstration) is a complex interdisciplinary challenge,” said Marcus Gay, biofuels information consultant, Elsevier Biofuels. “As a former BioEnergy R&D manager I am acutely aware of the technical, economic and commercial challenges faced by professionals in the industry. Elsevier’s Biofuel Information Discovery Tool pulls together scientific and commercial information enabling researchers to have this critical binocular vision during every stage of the development process.”

Using keywords, users can drill down to needed data and information. They can also tap into the Elsevier Biofuel Tree Thesaurus where more than 900 journals, 800 books, and 5.8 million patent documents are available. The platform also allows users to compare high-quality data specific to the biofuels industry including: solve problems with existing scientific knowledge; research new, promising advanced technologies; compare applicable approved pathways and methodologies; and minimize waste in resources.

“Having tested the beta version of Elsevier Biofuels discovery tool thoroughly, it became immediately apparent how limiting the information returned from internet only search is, by comparison,” said Dr. Skye Thomas-Hall, Senior Scientist, Cellana LLC. “The combination of high quality journal, book and patent information in one location, is a huge advantage that increased my efficiency by at least 15-20%.”

The majority of you who responded to our latest ZimmPoll think USDA’s acreage predictions are way off. We asked the question, “How accurate do you believe the USDA acreage predictions are?” 55% said Way Off while 41% said Close and 4% said Spot On. So there you have it. Take ‘em with a grain of salt. Hey, they’re a prediction after all. Does anyone know what the future looks like?

Our new ZimmPoll is now live. We’re asking the question, “Are you worried about how government regulations will hurt your business?” This is a big topic in Washington, DC right now and applies to all businesses. Please chime in and let the world know what you think. Thanks.

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

Sugarcane is not just for ethanol. Amryis Brasil S.A., the Brazilian arm of Amyris, has announced that it will be supplying 160 city buses in São Paulo with its Diesel de Cana, or renewable diesel produced from sugarcane. Beginning this August and expiring at the end of 2012, buses operated by the Viação Santa Brígida will run on a blend of 10 percent Diesel de Cana, with the remaining fuel blend comprised of biodiesel and petroleum diesel supplied by Petrobrás Distribuidora.

“Following the successful launch of our first industrial scale production facility and the positive results of the fleet testing in Brazil, we are thrilled to be a commercial supplier of renewable fuel for buses in Brazil’s largest city. Over the next year, as we expand our fuel supply agreements with bus fleets in São Paulo, we expect to achieve $10-12 million in annual diesel sales,” said John Melo, CEO of Amyris.

São Paulo currently has more than 15,000 buses that burn nearly 450 million liters of diesel per year. The move to Diesel de Cana signals the city’s commitment to reducing its fossil fuel use by 10 percent each year through 2018.

Melo continued, “Brazil’s growing demand for low-sulfur diesel creates a significant opportunity to highlight the superior performance and benefits of our renewable diesel while allowing the country to reduce diesel fuel imports, which comprised nearly 20 percent of Brazil’s diesel needs in 2010.”

The fuel has been tested by SPTrans, Mercedes-Benz, Petrobrás Distribuidora, and Viação Santa Brígida and the results show that when a 10 percent blend of Diesel de Cana is added to a B5 S50 blend, the fuel can lower smoke up to an additional 40 percent. Commercial vehicle manufacturers, including Mercedes-Benz have issued warranties for the B10 Diesel de Cana blend.

With the demand for meat rising in countries like China and India, there is a shortage of protein in the marketplace. Therefore, one of the hopeful co-products of algal biofuels is algae meal. PetroAlgae has announced that after completion of a third-party feed trial, its micro-crop meal performs as well as alfalfa in dairy cattle diets. The global market for dairy feed from alfalfa alone is estimated at 400 million metric tons by the United Nations Food and Agriculture Organization.

The study encompassed a continuous 6-week feeding trial of a statistically significant sample of 36 dairy cows living in barns housed at the University of Minnesota. It measured the algae meal against a 17.5 percent protein alfalfa diet and measured nutrient intake, milk yield and composition. With the positive results, PetroAlgae anticipates its micro-crop meal will be highly competitive in the feed market.

The University of Minnesota study is the first to validate PetroAlgae micro-crop meal in the dairy diet against the industry standard. Several key findings included algae meal having higher dairy efficiency values, higher energy values than alfalfa, and algae meal matched the alfalfa diet in milk, milk yield, body score, and body weight.

“The results of this study show that PetroAlgae micro-crop meal is a desirable ingredient for high producing dairy cattle and that it performed comparably to high-protein alfalfa meal,” said Dr. Noah Litherland, who performed the study at the University of Minnesota. “We are encouraged to see this product perform so well against one of the more universally understood products in dairy nutrition.”

Litherland added, “There is also an intriguing opportunity to alter the lipid composition of the meat and milk for added human health benefit.”

According to a new report from the Union of Concerned Scientists (UCS), clean energy policies would boost Midwestern economies. Last week, the Brookings Institution released a study that found the private-sector “green” economy in the Midwest already employs nearly 40,000 people. However, “A Bright Future for the Heartland: Powering the Midwest Economy with Clean Energy,” estimates that this number is already higher and will continue to grow.

In particular, the report found that the Midwest has great potential to produce electricity from renewable resources including wind, biomass and solar. Iowa is already the leading state for wind and biofuels and other Midwestern states like Minnesota are following close behind. The UCS report says that renewable energy has the ability to cut home and business energy bills, drive billions of dollars in new business investment and create thousands of jobs. All of this can happen, says the report, while reducing the use of energy created by coal.

“Adopting stronger clean energy standards can help transform the region’s economy,” said Steven Frenkel, director of UCS’s Midwest office. “Generating more renewable energy will put people back to work manufacturing the components needed to power the clean energy economy, such as wind turbines and solar panels. At the same time, reducing energy use can help keep Midwest businesses competitive by cutting their energy costs.”

The study analyzes the possible impact of a clean energy strategy that would help the economy. The duo approach includes policy combined with the adoption of energy efficient technologies. More specifically, the “proposed” policy would require 30 percent of each state’s electricity to come from renewable sources by 2030 coupled with the goal of a 2 percent reduction in annual power consumption by 2015 with an additional 2 percent reduction each following year. The study also found that while individual state policies can have an impact, the greatest achievement would happen if all states acted together.

Claudio Martinez, UCS energy analyst and report author added, “Few places in the world have the combination of a great renewable energy potential, a strong manufacturing base and the skilled workforce needed to realize that potential. And the Midwest is one of those places.”

San Juan Water District (SJWD) is now powered by solar energy. The solar panels will now supply up to 90 percent of the electricity consumed by the water treatment plant, administration buildings and booster pump station. The district estimates that the solar panels will save them $12 million in energy costs over the 25-year life of the system. SunPower designed and built the solar power system on nearly 4 acres of District-owned land and the panels were mounted on the SunPower to Tracker system which rotates the panels to follow the sun during the day.

“San Juan always looks for programs that benefit our customers,” said Ted Costa, San Juan Water District board president. “This project will allow the district to minimize the long-term impacts on ratepayers from rising energy costs. When we have the opportunity to help the environment and improve our bottom line, that’s a win/win.”

To help offset the costs of the solar panels, the district received a California Solar Initiative rebate from PG&E that will cover almost 40 percent of the construction costs. SunPower says the balance will be recovered through energy costs saving over the next nine years. In addition, using EPA figures, they almost estimate the CO2 reductions will be similar to removing 3,525 cars off of California roads over the next 25 years.

“With SunPower systems operating at more than 20 water agencies, representing approximately 20 megawatts in total, our experience and ability to deliver guaranteed performance sets us apart,” said Jim Pape, president of SunPower’s residential and commercial business group. “We applaud SJWD’s decision to convert a small piece of underutilized land into an asset that generates clean, reliable solar power and significant savings. Solar power makes good sense today for public agencies and our environment.”

Yards Brewing Co. is now brewing its beer with wind power. The company is one of Pennsylvania’s largest breweries and to fulfill its mission of “going green” the company is participating in Washington Gas Energy Services’ (WGES) 100% CleanSteps WindPower to Yards program. One reason the company chose wind power to provide renewable energy is because they said it produces no air or water pollution.

“Our green power purchase just makes sense – it fulfills our business philosophy and falls in line with our community efforts to be more environmentally sustainable,” said Yards Owner and Founder Tom Kehoe. The company hopes other Philadelphia businesses will follow suit and also switch to clean power.

For companies who participate in the WGES program, there is no installation of new equipment or wiring needed. Instead, CleanSteps (SM) WindPower customers receive one monthly bill from the local electric utility with WGES charges reflected as a separate line item. In addition, the local utility company continues to deliver electricity (aka wind energy) read meters and respond to any issues such as power outages.

Harry Warren, president of WGES added, “WGES is very excited to be able to help Yards Brewing Co. meet its environmental goal of reducing its carbon footprint. Yards Brewing Co.’s purchase of 100% WGES CleanSteps (SM) WindPower is equivalent to burning approximately 52,000 fewer gallons of gasoline or taking 91 cars off the road for one year.”

There has been speculation for several months that Brazil might reduce its country-wide ethanol fuel requirement. This has now become official. Brazilian President Dilma Rousseff has announced that in an effort to subdue inflation, the ethanol mandate will be reduced from the current blend level of 25 percent to either 18 percent or 20 percent and the final decision on the blend level will be made before the end of the month. Implementation would occur in August. The action is a direct result of rising prices for sugar that have been caused by back-to-back lower than expected sugarcane harvests.

The Vancouver Sun published a quote from an anonymous source saying, “The effect of ethanol prices has been very negative for inflation and inflation expectations … and the President has decided to act.”

Fuel accounts for 2.5 percent of the weighting within the main IPCA price index and experts predict the reduction could ease inflationary pressure.

The sugarcane harvest is currently underway and it is not yet known what the final harvest numbers will be. Should they come in higher than expected, sugar mills may produce more sugar versus ethanol, or some may decide to produce the ethanol and export it to other markets including the U.S. Energy ministry officials are expected to meet tomorrow to discuss the potential consequences of reducing the ethanol blend.

On Friday, July 15th, Lufthansa flew using a biofuel blend produced by Neste Oil. The NExBTL renewable aviation fuel was such a resounding success that now Airbus A321 Lufthansa-operated flights flying between Hamburg and Frankfurt will use this fuel, in both directions four times a day. One engine will run on a 50-50 NExBTL/fossil fuel blend while the other engine will be powered with fossil fuels only. This announcement makes Lufthansa the first airline in the world to incorporate biojet fuel into its operations for commercial flights.

“We are naturally very proud to be global pioneers with Neste Oil in using renewable fuel on regularly scheduled flights,” said Christoph Franz, the Chairman of the Executive Board and CEO of the Lufthansa Group.

These commercial biofuel flights are now able to take place because just last month ASTM International approved the use of renewable aviation fuel.

“Lufthansa has been our customer for a long time, and we are now very pleased to be leading together the adoption of renewable fuels in aviation,” added Neste Oil’s President & CEO, Matti Lievonen. “Neste Oil’s NExBTL technology is very well-suited to producing aviation fuel. All our NExBTL plants are capable of yielding fuel that meets the aviation industry’s toughest quality standards. This is an area in which Neste Oil will look for growth in the future.”

Neste Oil’s biojet fuel is made from a blend of vegetable oils and waste fats including camelina, jatropha and waste animal fats. The fuel is compatible in all current aircraft engines with no engine modifications required.

If you missed the Ethanol Summit this year, no worries. It is now available online via a dedicated YouTube channel. Sessions available online include all panels, plenary sessions and ceremonies from the event held this past June 6 & 7 in Sao Paulo, Brazil. The summit was hosted by UNICA, the Brazilian Sugarcane Industry Association and as the keynote speaker featured former U.S. President Bill Clinton.

Here is a little navigational help: all specific sessions can be accessed from the “webcasts” page. From this section, you can find specific sessions based on where they were held. For example, the opening and closing ceremonies as well as the main plenary session is housed under the “auditorium” tab while the 15 panels are stored by themed room names including technology, sustainability, markets and investments.

According to UNICA Corporate Communications Director Adhemar Altieri, the YouTube channel provides a historical record of the Ethanol Summit and serves other useful purposes. “It disseminates the information presented at the event to a much larger audience than could be accommodated at the event venue in two days and it allows event participants to view sessions they could not attend in person. With five theme-specific rooms offering sessions simultaneously, this is the only way to take it all in.”

In addition to the 2011 Ethanol Summit, the YouTube channel also houses the 2009 event.

Cellulosic ethanol has achieved a victory. The Dynamo, a concept car created by a student team called the Roadrunners, and fueled by ethanol made from straw, won the Urban Concepts class of the 2011 Shell eco-marathon in Europe. In tandem to the win, the car set a new miles per gallon record of 1,197 (509 km/1) when adjusted for energy equivalence with gasoline. The cellulosic ethanol was provide by Inbicon and was produced at their the Inbicon Biomass Refinery in Kalundborg, Denmark.

“The Roadrunners team from the Technical University of Denmark designed, built, tuned, tested, and drove the Dynamo to victory over all 35 European teams competing. And they also beat North America and Asia’s winning mileage,” said Christian Morgen, Inbicon manager of international marketing. “Since they use only a liter at a time, I don’t believe there’s any danger of depriving Danish retail customers of our eco-friendly fuel.”

The winning team was overseen by Jesper Schramm, a DTU associate professor. Six out of the last seven years his team has taken the trophy for energy efficiency in one of two main categories. A car is designated as an urban concept car, if with minor modifications, it could actually operate on city streets. This year is team used a 50cc 4-stroke Yamaha moped engine because the higher compression rate is able to take advantage of the higher octane level of ethanol fuel. To hone-in on an aerodynamic car, the team used wind-tunnel testing. Amazingly, the Dynamo ran 28% farther than its closest competitor.

More than 3,000 students and 187 teams from 27 countries took part in the eco-marathon held at the EuroSpeedway in Lausitz, Germany. Professor Schramm hopes that the experience and knowledge that has come from this project will launch their careers in a multitude of industries including automotive design and engineering.

Inbicon has coined its fuel “The New Ethanol” and has been producing it for use since 2009. Using Kalundborg as a guide, Inbicon plans on rolling out its biomass-based cellulosic ethanol worldwide.

Photos: Dynamo races to eco-victory at German speedway & Winning Roadrunners team, Technical Institute of Denmark. *Photo Credits Kasper Duncan Gram

ARS/Rescue Rooter has deployed 21 new propane autogas cargo and cutaway vans in the Los Angeles and Houston areas in an effort to be more “green.” The conversions were executed by ROUSH CleanTech on Ford E-Series vans that have been emission approved in the state of California by the California Air Resources Board as well as nationally by the Environmental Protection Agency.

“After researching several fuel options, we decided that ROUSH CleanTech propane autogas systems offered the best solution for us,” said Mike Baessler, fleet director of ARS/Rescue Rooter. “We believe this investment will provide longevity to our fleet, in addition to reduced operating costs allowing us to pass the savings on to our customers.”

According to ROUSH, the propane autogas vans will require less maintenance costs while extending the life of the engines. The company also says that using propane offers a 30-40 percent reduction in fuel costs when compared to gasoline, reduces greenhouse gas emissions between 17-24 percent, nitrogen oxide emissions by 20 percent and carbon monoxide by up to 60 percent.

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

At this time, ARS/Rescue Rooter plans to purchase 22 more propane autogas vehicles by the end of this year and an additional 100 by the end of 2012.

Wind energy and biofuels are part of the campaign for Congress launched this week by former Iowa first lady Christie Vilsack.

“We’ve got a lot of work to do, from supporting biofuels and wind power, to bringing broadband internet to our rural communities,” Vilsack says in her campaign YouTube video. Her website, ChristieVilsackForIowa.com, features a rural wind farm in the mast head. “We have more wind turbines in this district than anyplace in the country outside of Texas,” Vilsack says under Christie’s Plan on the website. “Why can’t some of their 8,000 component parts be made right here in Northwest and North Central Iowa?”

Vilsack officially announced her bid to represent Iowa’s newly formed 4th district yesterday with her husband Tom, current U.S. Secretary of Agriculture and former Iowa governor, at her side.

It pays well to be an ethanol plant worker in Nebraska.

The Nebraska Ethanol Board reports that wage growth in that state’s ethanol sector outpaced all industry wage growth in the past decade, increasing by more than 58%.

According to the Nebraska Department of Labor, average pay in the ethanol sector has increased from $35,479 in 2000 to $56,158 in 2010. Meanwhile, the statewide average pay for all industries in Nebraska was $37,319 in 2010. “A vibrant rural economy is vital for the economic success of Nebraska,” said Nebraska Commissioner of Labor Catherine Lang. “The ethanol industry provides high skill, high wage jobs for citizens across Nebraska.”

“Ethanol is vital to Nebraska’s economy,” said Nebraska Ethanol Board Administrator Todd Sneller. “The ethanol industry has created thousands of jobs while saving drivers money and burning more cleanly than gasoline.”

Sneller notes that a Nebraska Public Power District (NPPD) study found that Nebraska’s ethanol industry has directly created over 1,300 jobs, saved drivers $200 million through lower fuel prices, and created $3.5 billion in total economic output. State and local governments have collected over $30 million in new tax revenues created by the ethanol industry.

An ethanol plant that stops looking for ways to diversify its business and improve its profits is an ethanol plant that will drown faster in bad weather. A new option for the ethanol industry to diversify is to add a biodiesel plant to the end of its corn oil extraction technology. This idea lends itself one step closer to a true biorefinery.

So what is the value proposition of doing this? Profits, as Mark Fashian, president of Ethanol Analytical Solutions (EAS) and Biodiesel Analytical Solutions (BAS) explained to me during a Skype interview following the Fuel Ethanol Workshop recently held in Indianapolis, Indiana. For example, Fashian said a 100 million gallon per year ethanol plant will sell 100 million RINS. By adding a 3 million gallon biodiesel plant you’ll make your plant more valuable because each of these gallons is worth 1.5 RINS, or an additional 4.5 million in total.

With demand for biodiesel increasing and the need for more gallons (the biodiesel industry is still ramping up after the one year loss of the $1 per gallon tax credit in 2009), Fashian said this is the perfect storm for the ethanol industry.

You can listen to my full interview with Mark Fashian here: Diversifying the Ethanol Industry with Biodiesel

He also noted that one drawback to using corn oil for biodiesel is that it has a high acidic content, around 27.5 percent, and because of this it is hard to convert. Most plants use a two-step process to achieve this.

“It’s a lot of redo a batch, do a batch again because we didn’t get it just right, and that’s not what the ethanol industry is looking for,” said Fashian. “They’re looking for the silver bullet where you can take that corn oil right from the extractor and put it right in to another process to make biodiesel without having to mess with a second or third run to get the biodiesel to make ASTM grade. And that’s exactly what the McGyan process does. It’s patented for the corn oil process and with their everlasting catalyst you just pump the sample in with either ethanol or methanol and out the other end comes beautiful biodiesel.”

If a plant doesn’t have extraction technology, when all expenses are factored in, the return on investment (ROI) is less than one year, and this includes the lab. I should note that Fashian is also a director of Mcgyan and both EAS/BAS represent the technology. So their team would not only work with the ethanol plant on the biodiesel installation, but also help them update the lab for all the extra tests required for biodiesel and the proper equipment to achieve specs. For those plants who already have extraction technology, the ROI is less than 2 years.

It takes between 12-18 months to get the Mcgyan technology up and running and its already designed to be a perfect fit for an ethanol plant. Oh, and if you decide to sell your corn oil on the market rather than produce biodiesel, you can still produce biodiesel with other feedstocks.