Domestic Fuel

Aventine Renewable Energy plans to resume work next month on its ethanol plant located in Canton, Illinois.

In September 2011, Aventine announced it was delaying work on the plant due to uncertainty surrounding its ability to secure critical third-party technical and engineering support. Since that time, the company has secured the support necessary to move the project forward and now anticipates resuming work in early March 2012 with production expected to start this summer.

“Now is the time to move forward with this project. We have secured the critical third-party support necessary for the commissioning process. Additionally, we currently have approximately $50 million of combined cash and availability under our revolver,” said John Castle, Chief Executive Officer.

The Pekin, Illinois-based ethanol producer emerged from Chapter 11 restructuring in March 2010 after filing in February of the previous year.

An Australian ethanol producer has received the first completed commercial certification from the Roundtable on Sustainable Biofuels (RSB).

The Manildra Group, through its subsidiary Shoalhaven Starches Pty Ltd, produces bioethanol from starchy wastewater generated by their wheat processing facility in New South Wales, Australia. The RSB certification means that “Manildra offers tangible evidence that sustainable biofuels may be efficiently and economically produced at a large scale while adhering to ambitious social and environmental standards.”

The RSB Certification System allows farmers, feedstock processors and biofuel producers to demonstrate that their operations comply with ambitious yet practical safeguards, including, but not limited to, the protection of natural or rare ecosystems, food security, and the respect of human rights
to land, water and decent work conditions, and the management of water resources.

The Roundtable on Sustainable Biofuels is a multi‐stakeholder initiative launched and hosted by the Energy Center of Ecole Polytechnique Fédérale de Lausanne (EPFL), Switzerland.

A breakthrough by chemists at the University of California-Berkeley could have a profound impact on the growing market for hydrogen fuel cell vehicles.

In an article appearing this week in the journal Science, UC Berkeley chemists show how to construct a catalyst composed only of edges and demonstrate that it can catalyze the production of hydrogen from water as readily as the edges and defects in regular catalysts.

At the moment, creating these catalysts in the lab is not cheaper than using traditional catalysts, but efforts by Chang and others to simplify the process and create materials with billions of active sites on a ridged wafer much like a Ruffles potato chip could allow cheaper, commercially viable fuel cell catalysts.

Read more from Berkeley news service.

The Ethanol Committee of the National Corn Growers Association met in Kansas City this past week week to consider the challenges and opportunities facing the industry.

“The market for ethanol has grown exponentially over the past decade, thus utilizing an abundance of corn to meet the already-present need for a renewable, domestic biofuel,” said Chad Willis, a Minnesota corn grower who serves as chairman of the committee. “Now, we face a myriad of challenges and opportunities as those in the industry continue to innovate while some outside of it continue attempts to deny ethanol’s incredible value to our nation.”

“After years of hearing rehashed iterations of the food-and-fuel debate, we found the tour of LifeLIne to be both interesting and inspiring,” Willis said. “Companies such as this demonstrate that, through a mixture of creative thought and hard work, we can find new ways to use corn even more productively and solve an array of societal needs.”

The committee of farmer leaders from around the Corn Belt also had the opportunity to meet the NCGA’s new Director of Biofuel Programs and Business Development Pam Keck, who is a scientist and educator with more than 20 years of experience in the agricultural and biofuels industry, academia and not-for-profit research.

Keck most recently contracted with Monsanto, coordinating an outreach program that brought together schools and scientists. She has previously taught chemistry at Southern Illinois University, Edwardsville and at Lewis and Clark Community College. She has also served as assistant director of workforce development and scientific projects at the National Corn-to-Ethanol Research Center.

The president of the Renewable Fuels Association (RFA) is calling a bill approved by a House subcommittee Tuesday yet another stall tactic to the use of higher ethanol blends in fuel.

RFA’s Bob Dinneen says the legislation sponsored by Congressman Jim Sensenbrenner (R-WI) injects “parochial politics into the scientifically established process of approving new fuels.”

“In approving E15, the Department of Energy tested vehicles over millions of driving miles – the equivalent of some 4,700 round trips from Washington to Milwaukee,” said Dinneen in a statement. “To suggest more testing is needed is nothing more than a stall tactic that has but one outcome – our continued addiction to oil.”

Dinneen adds that the concerns raised in the bill are “largely superficial and do not require the intervention of Congress to resolve. America’s ethanol industry has been working with auto companies and fuel suppliers for over a year to address any concerns and misconceptions that persist. This bill would reverse the progress private industry has already achieved and threaten the job creation that would stem from an increased use of domestic renewable fuels.”

POET is targeting dairy producers with the introduction of a new low-fat distillers grains product.

The South Dakota-based ethanol producer notes that research indicates its new Dakota Gold Low Fat dried distillers grains with solubles (DDGS) can be fed to dairy cattle at a higher inclusion rate than traditional DDGS.

According to Kip Karges, PhD, Technical Services and Research Director at POET Nutrition, the product has just a 5 percent fat content, which offers a new opportunity for dairy operations that have had to limit DDGS use in the past because DDGS fat content can cause milk fat depression issues. “Dairy operations can feed more low fat DDGS to their livestock by using Dakota Gold Low Fat,” Karges said. “That will allow for optimum milk production while lowering ration cost.”

General research into the subject has shown that increasing concentrations of low-fat distillers grains have correlated to increasing efficiency of milk production. “When feeding regular DDGS you really have to limit feeds with high levels of unsaturated fatty acids and may cause limitations in formulation procedures,” said Paul Kononoff, Associate Professor of Dairy Nutrition/Dairy Nutrition Specialist at the University of Nebraska in Lincoln. “The reduction in fat in low fat DDGS allows for higher inclusion of the co-product without the worries of milk fat depression.” Kononoff and others as the University of Nebraska have performed trials for POET and will be releasing their data to the public this summer.

A deliberate research and development process was followed in bringing Dakota Gold Low Fat DDGS to market. The new Dakota Gold LF DDGS option is possible because of POET’s Voila™ Corn Oil production, which removes oil from DDGS. The resulting low fat DDGS have been researched and will continued to be researched to find new ways in which distillers grains, the second-largest traded feed ingredient on the market, can be used to produce protein for human consumption. Nutritionists at POET are providing animal research data to nutritionists and the feed industry in general regarding Dakota Gold LF DDGS. Research and nutrition details are available at the Dakota Gold website.

Legislation sponsored by Rep. James Sensenbrenner (R-WI) could delay getting 15% ethanol blended fuel in the marketplace by requiring even more testing by the Environmental Protection Agency.

The bill out of the Science, Space, and Technology Committee’s Energy and Environment Subcommittee has the backing of numerous anti-ethanol organizations, including the including petroleum, livestock, environmental and food industry groups. It would require EPA to contract with the National Academy of Sciences to study the effects of E15 on vehicles and engines. “The EPA’s decision to rush introduction of E15 into the marketplace raised a red flag, and stakeholders are speaking out before it’s too late,” Sensenbrenner said.

Growth Energy CEO Tom Buis notes that E15 has been tested more than any other fuel in history. “This is a waste of time and a waste of taxpayer dollars,” Buis said. “No fuel blend has undergone the level of scrutiny E15 has – and passed the tests like E15 did. They’ve been looking at E15 for more than three years.”

The Green Jobs Waiver for E15 was accompanied with more independently-gathered data, science and research in its support than any of the other 11 Clean Air Act waivers previously approved by the U.S. EPA. The agency approved the use of E15 in vehicles newer than 2001 more than a year ago, but it has yet to reach the consumer marketplace.

Algae oil extraction technology developer OriginOil has signed a commercial agreement with algae producer Aquaviridis to work on a multi-phase algae production rollout at a facility in Mexicali, Mexico.

Under the agreement, OriginOil will provide its expertise to help develop growth and harvesting solutions and implement appropriate OriginOil technologies. The Mexico facility is being developed as a potential model for algae sites throughout the North American Free Trade Agreement (NAFTA) region, with a focus on desert areas of the American Southwest and Mexico.

Minnesota-based Aquaviridis is backed by private sector funding, with plans to immediately scale up from research and development to ten acres of pilot algae production by the middle of this year. Commercial scale production capacity is expected by the second quarter of 2013. Aquaviridis selected the Mexicali Valley as a strategic location due to favorable growing conditions, strong local and governmental support, and available sources of carbon dioxide.

“The Mexicali Valley is a great place to develop an algae industry, given its climate and access to industry research and resources throughout North America,” said OriginOil vice president of marketing Ken Reynolds. “With the U.S. as a neighboring market for high value exports, Mexico is in an excellent position to take the lead in areas such as research and production of algae for nutritional products, animal feed, and oil for biofuels, which would create long-term regional economic growth and job production.”

The 2012 Advanced Biofuels Leadership Conference, presented by Biofuels Digest, is scheduled for April 2-5 at the Capitol Hilton in Washington D.C.

The main event will feature dozens of top officials from advanced biofuels companies, including industry leaders such as Amyris, Ceres, GEVO, Mascoma, Sapphire Energy, Solazyme, ZeaChem and many more. The conference also features two special full-day concurrent sessions April 5 – Military & Aviation Biofuels and the Bio-Based Investor Summit.

More information and registration details are available at advancedbiofuelssummit.com.

*Updated with clarification comments from UNICA*

The president of the Renewable Fuels Association (RFA) this week wrote a letter to the U.S. Trade Ambassador asking for an investigation into news that the Brazilian state of Sao Paulo was imposing a 25% tax on all imported ethanol.

“Because ethanol produced in Sao Paulo is tax exempt, ethanol imported into Sao Paulo from the United States and other areas is at a substantial economic disadvantage,” wrote RFA President and CEO Bob Dinneen to Ambassador Ron Kirk. “We believe this action is discriminatory and may severely—and immediately—restrict the exportation of U.S. ethanol to Brazil.”

Dinneen is pictured here sharing a lighter moment with Marcos Jank, president and CEO of Brazil’s UNICA during a session at the 2011 National Ethanol Conference.

In early December, the nation of Brazil extended a temporary suspension of a 20% federal tariff on imported ethanol.
“This action not only effectively reinstates the tariff on U.S. exports, but increases it by 5%,” wrote Dinneen. “Moreover, we believe the action taken by the state of Sao Paulo is in violation of Article III:4 of the Generalized Agreement on Tariffs and Trade (GATT) and possibly Article 2.1 of the World Trade Organization’s (WTO) Technical Barriers to Trade Agreement.

Port Santos in Sao Paulo is the main port of entry for U.S. ethanol exports to Brazil, which accounted for an estimated 400 million gallons in 2011.

*In response to the RFA’s letter and resulting media reports, UNICA released a statement from president Marcos Jank noting that the Sao Paulo tax is a pre-existing value-added tax (VAT), known as ICMS (Goods and Services Tax), which is not equivalent to the return of Brazil’s tariff on imported ethanol.

According to UNICA, the deferment period started on October 1, 2011 and is now scheduled to end on March 1, 2011.

Only a couple days now until the kick-off of the Super Bowl – and the 2012 National Biodiesel Conference.

We caught up with National Biodiesel Board CEO Joe Jobe at the Iowa Renewable Fuels Summit to get a preview of what promises to be a great conference. “Attendance is up, exhibitors are up, sponsorship is up, which is really a reflection of the fact that the industry’s back,” Jobe says. “The industry has come back and it’s really one of the most exciting come back stories since maybe Harley-Davidson.”

Jobe says there’s enthusiasm and excitement, but also a lot of work that needs to be done. “We need to talk about how we think about the industry going forward through the lens of the RFS, which is going to be the cornerstone of the industry moving forward,” he noted.

The conference will be held February 5-8 at the Gaylord Palms Convention Center in Orlando and while on-line registration is closed, there will be on-site registration for last minute attendees.

Listen to an interview with Jobe here: Joe Jobe interview

Leaders in the ethanol industry got together last week in Indianapolis to discuss the future of the industry in Indiana.

Steve Pittman, Director of the Indiana Ethanol Producers Association and General Manager of POET-Portland, is especially excited about the future of the cellulosic ethanol industry. “We see corn ethanol still stay as the basis of what we do and then we’ll see growth in cellulosic over the next ten years,” Steve said. “We don’t see corn going away. The concept is to reap the corn stover off the same fields we’re harvesting corn off of. We’ll have another opportunity for farmers to sell another product without having to grow another crop.”

Listen to an interview with Pittman here: Steve Pittman interview

Right now, infrastructure is important to expanding consumer choice, according to Rosalind Leeck, Director of Biofuels for Indiana Corn Marketing Council (ICMC). “Our farmers believe that expanding infrastructure to allow consumers more access to ethanol-blended fuel is crucial to the success and growth of the industry,” said Leeck, adding that ICMC is funding a program to encourage fuel retailers to add flex fuel pumps that offer mid-level blends, like E30, in addition to E85 to drivers of Flex Fuel Vehicles. “Through this program, 14 flex fuel pumps will be added to fuel stations across the state over the next several months.”

Listen to an interview with Rosalind Leeck here: Rosalind Leeck interview

Growth Energy CEO Tom Buis agrees that building infrastructure is critical to the increasing consumer choice. Buis told Gary Truitt of the Hoosier Ag Today (HAT) that he is optimistic about the future of ethanol in Indiana and nationwide. “Unlike Big Oil, ethanol is not stuck in the past, we’re focused on moving forward. With the introduction of E15 into the marketplace and increased build out of Flex Fuel pumps, American consumers will finally have choice when they fill up at the pump,” Buis says. “We know we can do more, we know it’s good for America.”

Listen to Truitt’s interview with Buis here: Tom Buis interview

Indiana produces 1.1 billion gallons of ethanol every year in 13 different ethanol plants across the state. Thanks to Gary Truitt of HAT for attending the Indiana ethanol forum and provided the photos and audio interviews.

Novozymes has announced a new research agreement that will explore enzymatic technology to produce fuel ethanol, fine chemicals, and protein from seaweed.

The industrial biotech firm has entered into an agreement with India-based Sea6 Energy to jointly develop a process for the production of biofuels from seaweed. The research alliance will use enzymes to convert seaweed-based carbohydrates to sugar, which can then be fermented to produce ethanol for fuel, fine chemicals, proteins for food, and fertilizers for plants.

Novozymes will research, develop, and manufacture enzymes for the conversion process, while Sea6 Energy contributes its offshore seaweed cultivation technology. “Seaweed is a natural complement to our efforts to convert other types of biomass to fuel ethanol,” says Per Falholt, Executive Vice President and CSO of Novozymes. “More than half of the dry mass in seaweed is sugar, and the potential is therefore significant.”

Sea6 Energy is currently trialing its cultivation technology in partnership with a few fishing communities around the coastal areas of South India. Novozymes’ Indian arm will work closely with Sea6 Energy to develop the conversion technology.

At some point in 2012, the final i’s will be dotted and t’s will be crossed so 15% ethanol can finally become the new consumer choice at the pump.

The final panel of the day at last week’s 6th Annual Iowa Renewable Fuels Summit focused on preparations that are being made to make sure retailers and consumers have all the information they need to make an informed choice when it comes to E15.

“A lot of what consumers know now is wrong,” said Ron Lamberty with the American Coalition for Ethanol (ACE).

Lamberty says while there are consumers who are opposed to the use of ethanol and are unlikely to change their minds, there is a good percentage of people who say they would use E15 if it were available. “When we do get E15 out to the marketplace, one of the things we have to make sure we tell people is that it’s out there and they can use it,” he said, noting that the main thing consumers need to know about E15 is that it is the most tested of fuel in history.

Another point that Lamberty believes is important for consumers to know is that the E15 approval for cars and light trucks newer than 2001 is not a mandate. “Approved for and not required,” Lamberty said. “No stations have to sell it and nobody has to buy it,” he said, although the industry believes that once consumers do try it they will want to use it.

As to when E15 will make it to the market, Lamberty says it is anyone’s guess, but he expects Iowa will be one of the very first places it will be available.

Listen to a Lamberty’s presentation at the summit here: Ron Lamberty at Iowa RFA Summit

Listen to an interview with Lamberty here: Ron Lamberty interview

Greg Emick of W&H Cooperative Oil Company spoke as a retailer that has adopted the use of blender pumps last year so they are already offering E15 as a choice in three different locations, along with other mid-level ethanol blends. “Our E15 sales were somewhat slow to increase but the E30 sales jumped right away,” he said. “I feel with promotion, advertising and pubic awareness about E15, it could become a larger percentage of sales at our retail facilities.”

Emick says their customers appreciate that they are promoting flexible fuels because of their environmental friendliness and competitive pricing, and he sincerely believes in the product and wants to see it continue to grow.

Listen to Greg Emick at the summit here: Greg Emick at Iowa RFA Summit

Photos from 2012 Iowa Renewable Fuels Summit

New Mexico farmworkers are receiving green job training installing solar panels, according to the Association of Farm Worker Opportunity Programs.

HELP-New Mexico, a statewide community-based organization headquartered in Albuquerque, helped prepare a group of farmworkers to obtain certifications that will provide them with the skills, knowledge, and ability to work together with journeyman electricians to design and install solar panel systems. The 48-hour training culminated over the weekend with a hands-on solar panel installation of a system on the homes of two low-income families in Berino, New Mexico.

“The class has provided workforce participants, many of whom are currently unemployed and/or underemployed, with a way to enhance their skills in targeted industries and provide them with a “leg up” in the job market”, states Roni Spetalnick, Southwest Regional Manager, HELP-NM.

Classes began on November 15, 2011, at the El Paso Electricians Apprenticeship Training Facility where a journeyman electrician/trainer helped prepare the New Mexico trainees to take the entry level North American Board of Certified Energy Practitioners (NABCEP) certification exam. Last Saturday, the trainees used their new skills to install solar systems on two homes built by Tierra Del Sol Housing, a nonprofit agency that builds affordable homes for low income individuals. They worked under the guidance and direction of a local solar installation company, Border Solar.