Domestic Fuel

The U.S. Department of Agriculture will be hosting a “match making day” later this month to promote connections between agricultural producers of energy feedstocks with biorefiners seeking to produce biofuels for commercial sale and consumption.

Officials from the U.S. Department of Navy, U.S. Department of Energy, and the Federal Aviation Administration will also attend the March 30 event at USDA headquarters with the goal being to improve awareness and increase understanding of the biofuels supply-chain links between those involved in feedstock production and the processors of that feedstock into biofuels, including logistical challenges, potential roles of service providers, and potential pitfalls.

At this meeting, federal officials will provide a short profile of each section of the supply chain and representatives from the participating stakeholders will respond with brief presentations that outline their experiences in that respective supply chain sector, barriers encountered and lessons learned. They will outline potential growth and opportunities.
Short presentations will be made at the top of each hour leaving time for discussion at each table, at which a representative from each of the sectors of the biofuels supply chain should be seated, as well as one or more government official.

The event is free but participants must register by sending an email to: OSEC-RESupplyChain@osec.usda.gov with information on company, names and titles of attendees and position on the biofuels production value chain (i.e., feedstock seed developer or provider, feedstock grower or harvester, feedstock processor, feedstock transporter, feedstock storer, bio-refiner, feedstock machinery manufacturer/provider, other). More information is available by calling 202-401-0461.

After more than a year of waiting since EPA approved its use for 2001 and newer vehicles, 15% ethanol blended motor fuel could be hitting the streets by this summer.

In January 2011, EPA approved a waiver for the use of E15 in 2001 and newer vehicles. Since then, a pump label has been finalized, health effects testing approved and finally, last week, the approval of the Misfueling Mitigation Plan developed by the Renewable Fuels Association.

This edition of “The Ethanol Report” includes comments from RFA president and CEO Bob Dinneen, Vice President of Technical Services Kristy Moore, and Director of Market Development Robert White about the MMP, as well as RFA’s E15 Retailer Handbook, and the E15 Education and Outreach plan for consumers. More information on RFA’s education and outreach plan can be found at e15fuel.org.

Listen to or download the Ethanol Report here: Ethanol Report on E15 Plan

Subscribe to the Ethanol Report here.

The Renewable Fuels Association (RFA) is ready for 15% ethanol (E15) to become street legal – something that could happen at any moment.

RFA president and CEO Bob Dinneen, Vice President of Technical Services Kristy Moore, and Director of Market Development Robert White gave an overview of the most recent developments in the commercialization of E15 ethanol blends. Specifically, they discussed EPA’s acceptance of the RFA’s Misfueling Mitigation Plan (MMP) and the release of its E15 Retailer Handbook.

“The job now is largely the industry’s to make E15 a commercial reality and we are working hard to make sure that happens,” said Dinneen.

“RFA has been working on our plan for months,” said Moore. “The (MMP) plan includes not only requirements for the label and appropriate use, it also includes tools and resources to insure that proper wording appears on shipping and product transfer documents and the development of a fuel survey.”

“The exciting time of educating retailers and ultimately consumers is upon us,” said White. “As of today, we will have the new E15 retailer handbook in the hands of more than 13,000 retailers.”

Read RFA’s Misfueling Mitigation Plan.

Read RFA’s E15 Retailer Handbook

Listen to of download all comments from Dinneen, Moore and White here: RFA Media Call on E15 Developments

The Environmental Protection Agency (EPA) is getting even closer to letting 15% ethanol blended gasoline (E15) make its debut in the marketplace.

This week, EPA notified the Renewable Fuels Association (RFA) that the model Misfueling Mitigation Plan for E15 the organization submitted meets the requirements of EPA’s waiver decision. In January 2011, EPA expanded upon its October 2010 decision and approved the use of E15 for light duty passenger vehicles Model Year (MY) 2001 and newer.

In a letter to RFA President and CEO Bob Dinneen, EPA’s Compliance Division acting director stated that the RFA Misfueling Mitigation Plan “would generally be sufficient to satisfy the partial waivers’ requirements.”

“Americans will soon have a safe and effective new fuel option at the pump that is domestically-made and significantly cheaper than gasoline,” said Dinneen. “EPA is clearing the way for E15 and allowing America’s ethanol industry to turn its full attention to educating retailers and consumers on the benefits of higher level ethanol blends and ensuring that state fuel regulations allow for their sale.”

The next steps will include ensuring companies seeking to offer E15 are registered with EPA, they have submitted the Misfueling Mitigation plan, and are addressing lingering fuel regulatory requirements at the state level. Some states, including Iowa, Illinois, and Kansas, are prepared to welcome E15 and drivers in those states will be among the first to see E15 at the pump.

Coinciding with EPA’s approval of RFA’s Misfueling Mitigation Plan, the RFA released the E15 Retailer Handbook. This Handbook provides guidance for retailers in evaluating existing infrastructure compatibility, safety and conversion practices and state specific regulatory requirements.

The Sustainable Biofuels Awards were presented this week at the World Biofuels Markets 2012 Congress in Rotterdam, Netherlands.

The awards include biofuels leadership, technology, adoption, bioethanol, biodiesel, feedstock innovation, innovation in aviation, biopower generation and bio-based chemicals and are determined based on judging by an elite panel of independent industry experts, with final voting by individuals in the general biofuels industry.

2012 Sustainable Biofuels Awards Winners:

Biofuels Leadership Award – Novozymes
Sustainable Biofuels Technology Award – LS9
Biofuels Adoption Award – City of Stockholm
Sustainable Bioethanol Award – Abengoa
Sustainable Biodiesel Award – Vale
Sustainable Feedstock Innovation – DuPont Cellulosic Ethanol
Innovation in Aviation – Boeing
Sustainable Biopower Generation Facility – Envergent Technologies
Leader in Bio-based Chemical Industry – Kiverdi

A diverse group of bioenergy stakeholders is holding a Capitol Hill Day for Bioenergy in Washington, DC on March 21.

The event is being sponsored by a number of organizations including the 25x’25 Alliance, American Farm Bureau Federation, Advance Biofuels Organization, Algal Biomass Organization, American Council on Renewable Energy, Biomass Power Association, Energy Future Coalition, National Alliance of Forest Owners, National Farmers Union, and SAFER Alliance.

The groups are holding the event to draw attention to the fact that renewables make up nearly 12 percent of all energy produced in the U.S., such as fuels, electricity and thermal energy from biomass, and that bioenergy reduces the nation’s risks from dependence on foreign oil, strengthens our economy and ensures the continued, sustainable management of our natural resources.

The day will include a morning briefing with congressional members and trade group association leaders on bioenergy issues, small group visits to educate Congressional leaders and their staffs, an evening reception on Capitol Hill to network with other industry stakeholders, Congressional staff, and association partners.

Anyone in the bioenergy sector is welcome to take part in the event – registration and other information is available on-line.

As work on the Transportation Bill progressed in the Senate Tuesday, two amendments that would have extended tax incentives for renewable energy sources were defeated.

An amendment offered by Sen. Debbie Stabenow (D-MI) failed on a tie vote of 49-49, since 60 votes were needed for passage. The amendment would have extended a variety of incentives, including the Cellulosic Biofuels Producer Tax Credit (PTC) the Accelerated Depreciation Allowance for Cellulosic Biofuel Plant Property, and the Alternative Fuel Infrastructure Tax Credit available to blender pumps and other ethanol fueling infrastructure, the Production Tax Credit (PTC) for wind and grants in lieu of tax credits to eligible solar projects, all of which are due to expire at the end of this year.

“Unfortunately the Senate missed an opportunity to put to bed the pressing need to extend expiring tax incentives for cellulosic biofuels and other sources of domestically produced clean energy,” said Advanced Ethanol Council Executive Director Brooke Coleman. “Echoing the 49 U.S. Senators who voted for the Stabenow amendment today, we cannot afford to miss any more opportunities to get this done.”

The measure would have also extended the $1 per gallon biodiesel tax incentive, which expired at the end of last year, through the end of this year. Another amendment offered by Senator Pat Roberts (R-KS) that would have extended the biodiesel tax credit was also defeated. “We thank Sen. Stabenow and Sen. Roberts for including biodiesel in their amendments, and we urge Congress to break this partisan gridlock and find a way to enact policies like the biodiesel tax credit that have strong bipartisan support,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board.

While the extension amendments failed to pass, an amendment to repeal most of the same tax incentives by Sen. Jim DeMint (R-SC) was also defeated in the Senate. DeMint’s amendment would have repealed tax credits for the wind, plug-in vehicles, and renewable fuels, but would have also addressed some taxes for fossil fuels. It failed by a much more resounding vote of 72-26.

Mendel Biotechnology, Inc. and BP Biofuels will be conducting demonstration field trials of a newly developed energy specific variety of miscanthus.

The two companies have signed a four-year agreement to test Mendel’s PowerCane™ Miscanthus and evaluate its performance as feedstock for biofuel production at BP Biofuels’ demonstration plant at Jennings, Louisiana. A total of 100 acres of PowerCane™ Miscanthus will be planted in early 2012 near BP’s Jennings facility and the first biomass harvest from these fields is expected in 2013.

“PowerCane™ Miscanthus varieties are the first miscanthus products specifically developed for biomass production that can be planted as a seed,” said Mendel Bioenergy Seeds president Don Panter. “The PowerCane™ Miscanthus system will be significantly more economical and efficient for growers, and will allow the industry to scale up more quickly to meet renewable energy goals.”

According to the company, PowerCane™ Miscanthus represents a new chapter in biomass production. While the current publicly available miscanthus varieties have outstanding agronomic and biomass performance characteristics, they must be planted as a rhizome or live plug, which requires additional investment and equipment for growers.

BP Biofuels currently operates a biofuels demonstration facility in Jennings, La that is used to test new cellulosic technologies in the biofuels production process. BP is also constructing a 20,000 acre energy grass farm in Florida that will supply a 36 million gallon a year conversion facility. Construction on the facility is expected to begin later this year.

DuPont Cellulosic Ethanol (DDCE) is hoping to start construction on a 27.5 million gallon cellulosic plant later this year, according to DDCE Global Business Director Steve Mirshak.

At a recent Pioneer Hi-Bred media event, Mirshak talked about DDCE’s purchase last year of land in Nevada, Iowa, adjacent to the Lincolnway Energy conventional ethanol plant. “We have some very positive synergies with Lincolnway,” Mirshak said. “We’re looking at utility sharing and also rail siting sharing. They’re a great neighbor and it’s been a great relationsip.”

Mirshak says the feedstock for the plant will be corn stover and they have already been working with growers in the region on harvesting that product from their fields. “In 2011, we worked with about 50 growers within a 30 mile radius of the Nevada plant,” he said. “We harvested about 7500 acres. Our goal is to collect about two tons of stover per acre.” The stover will be baled in large rectangular bales and stored in various sites to be fed to the plant as needed.

He expects corn growers will find that this market and use of stover will fit nicely into their residue management program. “We see it as a win-win situation,” Mirshak added. “We’re going to generate more ethanol in America’s quest for energy independence, help develop the rural economy, as well as help farmers improve their yields and grow more food.”

DDCE anticipates the need for about 320 cellulosic ethanol plants by 2022 to meet the federal mandate. “The most important issue is the stability of the Renewable Fuel Standard mandate. That is driving the massive investment in technical research into cellulosic ethanol and the future investment in building new plants,” Milshak said. “So our number one priority is to maintain the RFS.”

He adds that the cellulosic producer tax credit is also important as companies invest in the first plants and learn to operate more efficiently.

You can listen to an interview with Steve Mirshak here:Interview with Steve Mirshak

The American Ethanol No. 3 Chevy made its debut over the weekend at the Las Vegas Nationwide Series Sam’s Town 300 with rookie driver Austin Dillon finishing strong in 7th place.

Representatives of American Ethanol partners, the National Corn Growers Association (NCGA) and Growth Energy, were in town for the March 10 race. Pictured here with RCR team owner (and Dillon’s grandfather) Richard Childress (left) are Growth Energy CEO Tom Buis next to Dillon and Illinois corn farmer Martin Barbre, chairman of NCGA’s NASCAR Advisory Committee on the right.

Barbre said with three races down in the Nationwide season, Dillon is already exceeding their expectations. “He ranks second in driver points in his rookie season and is proving to be a great spokesperson for the performance, economic and environmental benefits of Sunoco Green E15,” said Barbre. “Educating fans about the importance of NASCAR’s switch to a 15 percent blend of ethanol, from an environmental, performance and even patriotic standpoint, will reinforce the importance of the NASCAR Green message while helping the sports broad fan base become better acquainted with the benefits of the fuel produced by family farmers such as myself.”

Las Vegas was the first race this season where No. 3 Chevrolet sported the black and green colors of American Ethanol and marked Dillon’s first Nationwide Series start at Las Vegas Motor Speedway. Dillon was so excited about the ethanol theme that his team even tweeted a photo of his “new @AmericanEthanol helmet.”

As the son of former driver and RCR general manager Mike Dillon and grandson of Richard Childress, American Ethanol partners felt the 21-year-old’s performance in the Vegas race highlighted his developing talent and his dedication to clean-burning, domestically produced ethanol.

“We are thrilled to be working with Austin this year to make fans aware of the amazing performance ethanol offers,” said Barbre. “Our partnership with RCR brings together two great American legacies, that of the famed racing family and that of the American family farmer.”

The White House today released a one-year progress report on the “Blueprint for a Secure Energy Future,” the Administration’s all-of-the-above approach to American energy.

Among the highlights noted in the report is that the plan has resulted in a doubling of renewable energy generation from wind, solar, and geothermal sources since 2008. According to the report, “Since 2009, DOI has approved 29 onshore renewable energy projects—about 6,600 megawatts—including: 16 solar projects, 5 wind farms, and 8 geothermal facilities. These projects include the first solar projects ever permitted on public lands.”

In the area of developing advanced alternative fuels, the report notes that in 2010, “President Obama set a goal of breaking ground on at least four commercial scale cellulosic or advanced biorefineries by 2013. That goal has been accomplished, one year ahead of schedule. Together, these projects, and associated demonstration and pilot projectswill produce a combined total of nearly 100 million gallons per year of advanced biofuels capacity.”

In addition, EPA’s continued implementation of the National Renewable Fuels Standard (RFS) has supported a growing domestic renewable fuels industry. Last year, industry reported production of approximately 14 billion gallons of renewable fuels, about 8% of total U.S. highway vehicle fuel. In fact, U.S. biofuel production is at its highest level, as average monthly production increased more than 40 percent between 2008 and 2011. EPA worked with stakeholders in evaluating new fuel technologies and feedstocks to support expanded opportunity for these fuels to be an important part of the domestic transportation fuel market. To help support deployment of advanced fuel infrastructure, in 2011, the Department of Agriculture provided over $4 million in grants to fund 265 flex fuel dispensers in 30 states.

The report also made note of progress in the development of aviation biofuels, more alternative fueled vehicles in the federal fleet and the launch of the National Clean Fleets Partnership, an initiative to help large, private sector companies improve the efficiency of their fleets and reduce the country’s dependence on oil.

Read the report here.

An agricultural economist says hog producers are now able to compete with ethanol producers for corn.

“This is an amazing difference from just five years ago,” said Purdue agricultural economist Dr. Chris Hurt. “The hog industry was largely set up with $2-2.50 corn going into 2006. After that we saw major increases in those corn prices.” Dr. Hurt spoke to swine veterinarians on the topic of “Global Feed Economics in a Biofuel World” during seminar in Denver on Friday.

Hog producers initially absorbed those higher costs by reducing margins, which meant big losses and ultimately resulted in reduced supplies. “You reduce the supply enough, you bring those hog prices up. That’s where we are today. Hog producers can pay $6-7 for corn with the prices they’re getting for hogs,” he said. “That up to $7 is higher than ethanol plants can pay for corn and still cover all their costs.”

Dr. Hurt is certain that the days of $2 corn are over, but he does expect prices to moderate around $5-5.50 a bushel. While he does believe that livestock producers have adjusted over the past five years to living in a “biofuel world,” he’s hesitant to say there is “equilibrium” between ethanol and livestock production. “Obviously, equilibrium is the ‘golden state’ where everybody is covering their costs but often times we’re in dis-equilibrium,” he said. “I think as we look back on this era, we’re going to say that ultimately the renewable fuels program was a very, very aggressive program. Had corn farmers had ten years to build that up, it would have caused a lot less trauma for other sectors, like our livestock sector.”

Listen to an interview with Dr. Hurt here: Dr. Chris Hurt

POET–DSM Advanced Biofuels will be celebrating the start of construction Tuesday on Project LIBERTY, the planned commercial-scale ethanol plant in Emmetsburg, Iowa.

The joint venture between Dutch life sciences firm Royal DSM and ethanol giant POET announced the groundbreaking when the partnership was made public in January. “The joint venture anticipates that we’ll complete construction of Project LIBERTY and start producing cellulosic ethanol in the second half of 2013,” said POET CEO Jeff Broin. “Together, we’ll produce a home-grown, renewable fuel that can create jobs, clean our environment and make us less reliant on foreign oil. This partnership has the potential to change the world.”

Iowa Governor Terry Branstad and representatives from POET-DSM Advanced Biofuels will take part in the formal groundbreaking for the plant starting at 10:30 Tuesday morning in Emmetsburg.

The president of one of the world’s largest ethanol plant engineering and construction firms is pleased with the progress made by the industry in the last 30 years, but frustrated by the barriers to higher ethanol blends.

At the recent National Ethanol Conference, where ICM, Inc. founder Dave Vander Griend was honored with the Renewable Fuels Association 2012 Membership Award, he talked about how ethanol could replace some of the additives currently found in gasoline – called aromatics – which are used to help boost octane in gas. “We’re looking just to go from 10% ethanol to 15% ethanol with a clean, non-toxic product,” he explained. “The petroleum industry can go from 10 to 40% aromatic additions to their gasoline anytime they choose.”

He noted that Henry Ford’s Model T engine was originally designed to run on either gasoline or ethanol. “Actually, the first FFV was a Model T,” said Vander Griend. “That wasn’t something that set well with Rockefeller – he wanted everything to be gasoline, but at that time there was no octane additive to put into the gas so it wasn’t very good and cars would ping and knock. Taking that fuel they made then, if they would have added 20-30% ethanol, both parties would have won.” Instead, they got rid of ethanol through prohibition and used lead to increase octane. The creation of the EPA got the lead out of gasoline, which led to MTBE being used as a replacement until that was determined to be carcinogenic.

Vander Griend believes that ethanol could reduce tailpipe emissions by up to 50% with just a 30% blend. “Ethanol can replace aromatics on a 1-to-1 (basis) and actually give them more octane than they had from the aromatics,” he said.

Listen to interview with Dave Vander Griend here: Dave Vander Griend Interview

2012 National Ethanol Conference Photo Album

Biofuels organizations are strongly urging lawmakers to approve an amendment to the Transportation Bill (S.1813) offered by Senator Debbie Stabenow (D-MI) that would extend tax incentives for biodiesel and cellulosic ethanol.

“We applaud Sen. Stabenow for introducing this amendment and we urge all senators to support it,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. “This is about creating good-paying jobs and building up a U.S. energy industry that will help end our dangerous vulnerability to the kinds of oil price spikes we’re seeing now.” The $1 per gallon biodiesel tax incentive expired at the end of 2011.

Advanced Ethanol Council Executive Director Brooke Coleman wrote a letter last week to Senate leadership urging support for the amendment that would extend the Cellulosic Biofuels Producer Tax Credit (PTC) and the Accelerated Depreciation Allowance for Cellulosic Biofuel Plant Property through 2013. “Several billion dollars have been invested in the development of advanced biofuels with the expectation that Congress will stay the course with regard to its commitment to the industry,” Coleman wrote. “The PTC and accelerated depreciation allowance provide investment certainty in a high‐risk marketplace largely supply‐ and price‐controlled by OPEC.”

The Renewable Fuels Association, Growth Energy and the American Soybean Association are other organizations that are urging Senators to pass the amendment. Sen. Pat Roberts (R-KS), Ranking Member of the Senate Agriculture Committee, has also proposed an amendment that includes extension of the biodiesel tax credit along with other energy related provisions. Work on the Transportation Bill is scheduled to continue in the Senate on Tuesday. Сайт знакомств