Domestic Fuel

You can’t smoke it … well, you SHOULDN’T smoke it … but you might be able to burn it. A researcher from the University of California is working on getting more oils out of tobacco plants so it can serve as a feedstock for biodiesel, providing a green fuel source while finding a market for tobacco growers without it harming people’s health.

Peggy G. Lemaux, UC Cooperative Extension specialist, and Anastasios Melis and Krishna Niyogi, Agricultural Experiment Station faculty in the Department of Plant and Microbial Biology at UC Berkeley, are lead researchers in the project.

“There are several reasons we are modifying tobacco to produce biofuel,” Lemaux said, “It is a high biomass crop. If you want to extract oil, then the more biomass you have, the more oil you get. And, since tobacco is not a food source, tobacco production for biofuel would not have an impact on global food markets or find its way into the food supply. Finally, tobacco farmers are anxious to produce a product that is more acceptable to the public.”

The article goes on to say how the researchers are using algae genes to help the tobacco plants produce more oil. A commercially viable method is still in the distance, but Lemaux is optimistic. The school received a three-year $4.8 million grant from a U.S. Department of Energy to conduct the research.

The U.S. Senate today confirmed Ernest Moniz to replace Steven Chu as the Nation’s Secretary of Energy. The 96-0 vote was welcomed by biodiesel and ethanol groups:

“Throughout his career, Ernest Moniz has supported efforts to move beyond fossil fuels to a cleaner, more secure energy future in which renewable sources play a prominent role,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board. “He knows that advanced biofuels like biodiesel are critical to our long-term energy and environmental security, and he has supported practical policies aimed at developing renewables in order to reduce our dependence on petroleum, create jobs and reduce harmful emissions.”

Michael McAdams, president of the Advanced Biofuels Association, issued a statement in support of the confirmation. “We are pleased that President Obama tapped such a strong advocate for policy that supports solid energy growth and is a friend of the advanced biofuels community.”

“I would like to congratulate Ernest Moniz on his confirmation as the Secretary of Energy. President Obama has chosen an excellent and well-qualified individual to lead the Department of Energy and I look forward to working with Secretary Moniz to continue to advance the growth and development of sustainable biofuels,” said Tom Buis, CEO of Growth Energy.

The Renewable Fuels Association also congratulated Moniz. “Given his background and expertise in energy, we look forward to the secretary’s first visit to an ethanol plant. We are eager for him to see firsthand the positive economic impact the renewable fuel standard has had in creating new jobs and revitalizing rural economies,” said Bob Dinneen, president and CEO of the RFA.

Brooke Coleman, executive director of the Advanced Ethanol Council, added his praise of the pick. “Secretary Moniz has just the right combination of technical expertise and political experience to be very effective as the new Secretary of Energy. He clearly understands what it takes to commercialize new energy technologies, and we look forward to working with the Secretary and his colleagues going forward as the advanced ethanol industry deploys commercially in the United States and abroad.”

It appears biodiesel giant Renewable Energy Group (REG) has inked a contract manufacturing agreement with an Iowa biodiesel maker. Biodiesel Magazine reports REG signed the 12-month contract with Iowa Renewable Energy LLC to purchase raw materials for the 30 MMgy multifeedstock plant and market biodiesel produced at IRE’s refinery.

“We are pleased REG has chosen to work with Iowa Renewable Energy,” said Ron Lutovsky, IRE’s chief operations officer and chief financial officer. “Our focus on fuel specifications and our BQ-9000 processes are aligned with REG’s commitment to biodiesel quality.”

“IRE’s processing technology allows REG to expand our diverse raw material procurement strategy as well as our transportation and logistics programs to meet our growing customer demand,” said Dave Elsenbast, REG’s vice president of supply chain management.

REG was the actual general contractor and technology provider for the construction of the IRE facility back in 2007.

The Argentinians are not sitting by and letting the European Union block their exports of biodiesel. Bloomberg reports the country filed a challenge against the EU with the World Trade Organization:

The EU is studying whether to levy import tariffs on countries including Argentina and Indonesia that may be exporting biodiesel with state aid like it did for U.S.-based ethanol producers in February, Roberto Rodriguez Labastida, a London-based analyst at Bloomberg’s New Energy Finance, said today by phone.

Argentina levies an export tariff on soybean that sometimes is lower than on biodiesel, the fuel that it’s processed into, Labastida said. That may lead to lower prices of the vegetable oil, which offers an advantage to Argentinean biodiesel refineries over European refineries that use the feedstock.

Argentina is the world’s largest exporter of soybean biodiesel. It filed a separate WTO complaint against Spain last year when the Spanish decided to use just EU fuel to meet transportation biofuels quotas. Spain reversed that decision.

Those high-powered tractors that scream down the track will have even more sternum-rumbling power as they’ll soon be running on 100 percent biodiesel. This United Soybean Board news release says the National Tractor Pullers Association (NTPA) will allow for the pure green fuel in all of their diesel pulling classes this season. It’s good news for the pullers, who will see a 4 percent increase in torque and horsepower, according to a study conducted by the United Pullers of Minnesota paid for by the state soy checkoff board in Minnesota:

“Performance results like these are an added bonus to the environmental and economic benefits of using biodiesel,” says Larry Marek, soy checkoff farmer-leader and a soybean farmer from Riverside, Iowa. “If NTPA pullers can get these kinds of results on the track, we can certainly get great results using B100 on the farm.”

“B100 performs well, and is dependable even in the most excruciating tests,” says Gregg Randall, NTPA office general manager. “Pullers will definitely want to take advantage of the fuel this pulling season.”

Check out the entire 2013 NTPA competition schedule here so you can experience first-hand the rumble and thunder of your favorite tractor pullers… now using B100.

Iowa’s biodiesel plants are at just over half capacity … leaving a lot of room for growth of the green fuel in the state. The Iowa Renewable Fuels Association (IRFA) says the refineries are at 54 percent capacity in the first quarter of 2013, producing 42.7 million gallons.

Nine of the state’s 12 biodiesel plants reported production. If all 12 Iowa biodiesel facilities operated at full capacity, they would produce 315 million gallons in one year. The industry is focused on promoting higher biodiesel blends to boost demand and maximize the biodiesel industry’s positive impacts on the state’s economy.

“While the first quarter was solid start, biodiesel production in Iowa has plenty of room to grow,” stated IRFA Communications Director T.J. Page. “Iowa’s famers and policymakers have a real opportunity to further boost biodiesel’s job creation and rural revitalization potential. IRFA continues to urge the Legislature to create a B10 differential in any fuel tax legislation considered this year. We’ve seen a strong move toward B5 blends, but promoting B10 has the potential to double the positive economic impact.”

The release goes on to say how biodiesel is helping farmers’ bottom lines by increasing the price of soybeans, cutting feed costs and raising the value of animal fats for Iowa’s livestock producers.

By a 15-5 vote, the Senate Agriculture Committee sent the Agriculture Reform, Food and Jobs Act of 2013 and its commitment to renewable energy to the full Senate, which could take it up next week. The National Biodiesel Board (NBB) welcomed the move, especially the part that funds the Biodiesel Fuel Education Program to the tune of $1 million a year through 2018, with another $1 million a year in discretionary funding for that same time.

During an interview with Chuck at the National Association of Farm Broadcasters (NAFB) Washington Watch, Anne Steckel vice president of federal affairs for the NBB said she is also hopeful Congress preserves the Renewable Fuels Standard (RFS).

“The RFS is really the backbone of the biodiesel industry,” she said. “It’s been incredibly successful for our industry, and it’s been very beneficial for consumers in general. We’re supporting over 50,000 jobs. We’re diversifying off foreign oil, and we’re helping better the environment.”

Steckel went to say that biodiesel enjoys a broad base of bipartisan support in Washington, and she is optimistic that support will continue and help that green fuel sector grow.

“The biodiesel industry is going to continue in its steady growth pattern, [producing] 1.3 billion gallons this year,” and the support of the RFS and biodiesel federal tax credit will help the industry and consumers as well.

Listen to Chuck’s interview with Anne here: Anne Steckel, NBB

2013 NAFB Washington Watch Photo Album

Soybean growers are getting more for their beans because of biodiesel, but consumers aren’t being pinched by higher food prices at the grocery stores. According to the United Soybean Board, a new study done for soybean checkoffs in Minnesota, Nebraska and the Dakotas show that biodiesel production has pushed U.S. soy oil prices higher than they were before the green fuel, increasing soy-oil revenues by $15 billion between 2006 and 2012 while pushing up the price of a bushel of soybeans by $0.74 a bushel:

It appears that biodiesel demand also helped offset the effects of a drop in food applications.

“When trans-fat labeling decreased the use of soy oil for food applications, specifically cooking oils, it created a huge drag on the soy-oil price due to surplus,” said Lewis Bainbridge, United Soybean Board (USB) secretary and a soybean farmer from Ethan, S.D. “We generated a huge stockpile, and that’s when the demand for biodiesel started, which helped decrease the glut of soy oil.”

Meanwhile, all those soybeans processed for biodiesel production are also being turned into more soy meal, lowering the cost of feed poultry and livestock farmers. The study says biodiesel production lowers soy meal prices by as much as $25 per ton.

The University of Wyoming has signed a deal that gets it into the algal biomass industry. The school agreed to give PlanktOMICS Algae Bioservices, run by a pair of university researchers, space and support to research how to develop patent-pending processes in exchange for a cut of the profits down the road:

PlanktOMICS principal partners Stephen Herbert, a UW professor of plant sciences, and Levi Lowder, a UW doctoral candidate in molecular and cellular life sciences, will focus on serving small companies that need to solve problems relative to their algae needs.

“Our services are tailored to companies that want to outsource their biological studies or biological research,” adds Lowder, who is PlanktOMICS’ chief technology officer. “We don’t really produce the end products. We do the biology. You have to know how to grow algae. That’s where we come in, to figure out how to farm algae on a large scale (for other companies).”

PlanktOMICS is working on technologies to control unwanted algae and other microbes in algae ponds, just like corn and soybean farmers control weeds, as well as technology to lower the cost of harvesting of algal biomass, among others. Last year, Lowder’s team won the university’s John P. Ellbogen $30K Entrepreneurship Competition, getting $12,500 and one year of free rent to further develop the company at the Wyoming Technology Business Center (WTBC), a business incubator at the school. Herbert and Lowder say they already have two clients lined up, one in the algal nutritional supplement business for more than 30 years. The developments could ultimately lead to algae-biodiesel projects.

Looks like the discussions are going to kick off right at the upcoming International Fuel Ethanol Workshop & Expo (FEW), June 10-13, 2013, in St. Louis, Mo. One of the first sessions will be the Association Roundtable: Mid-Year U.S. Ethanol Policy Update, featuring moderator Tom Bryan, President, BBI International; Bob Dinneen, President & CEO, Renewable Fuels Association; Tom Buis, CEO, Growth Energy; and Brian Jennings, Executive Vice President, American Coalition for Ethanol, set for Tuesday, June 11 at 9 am:

Join the top executive officers of the Renewable Fuels Association, Growth Energy and the American Coalition for Ethanol for a vital summer policy update on safeguarding RFS2, correcting misinformation about RINs, building the market for E15 and mid-level blends and maintaining our national commitment to commercializing advanced and cellulosic ethanol.

Still plenty of time to make your reservation for the event. Click here for more information.

The Environmental Protection Agency’s (EPA) decision that makes aviation biofuel, better known as biojet, eligible for Renewable Identification Numbers (RINs) could make those green fuels viable for the aviation industry. This piece from Platts says the aviation industry could qualify for D4 biodiesel, D5 advanced biofuel or D7 cellulosic diesel RINs, despite jet fuel being exempt from RINs obligations.

“The availability of RINs is a critical bridge to commercial viability,” Nancy Young, vice president of environmental affairs for US airline trade group Airlines for America, said in a recent interview.

“What the RIN value does is it creates an incentive to buy and trade this fuel,” he said. “The whole reason we need the RFS is because we can show up with a cheaper better fuel, but it doesn’t necessarily get it into the marketplace because it’s so vertically integrated. RINs make sure the renewable fuel is used in an economically efficient way.”

The article goes on to say that the increasing costs of biodiesel RINs could end up causing trouble for biojet.

The Dynamic Fuels renewable diesel plant in Geismar, La., idled late last year, soon could be reopened. Biomass Magazine reports that Syntroleum, which has the animal fat and yellow grease renewable diesel plant as a joint venture with Tyson Foods, expects to start up operations once again this summer:

During the call, Gary Roth, president and CEO of Syntroleum, said the company ordered a new catalyst for the plant in February. It is scheduled to for delivery in late June. According to Roth, the new catalyst is expected to increase yields from an average of 80 percent to an average of 88 percent. As a result of the new catalyst, Roth said revenues per gallon would be expected increase from $4.09 to $4.55 per gallon, which would result in a $13 million revenue increase.

Rather than interrupting the feedstock chain of the plant while it is operating, Roth said the company believes it will be better to defer operations until the new catalyst is installed.

Syntroleum officials say the expected stability in D4 biomass-based diesel Renewable Identification Numbers (RINs) through this year and 2014 should help the company’s bottom line. The retroactive reinstatement of the biodiesel tax credit also helped profit margins to make the plant viable once again.

GE will be rolling out a new wind turbine for a wind farm in Michigan. This company news release says GE will supply 59 of the 1.7-100 brilliant wind turbine, the world’s most efficient wind turbine in its class, for the NextEra Energy Resources, LLC’s wind farm in the thumb region of Michigan.

The 1.7-100 machine is the second brilliant wind turbine in GE’s portfolio. GE’s brilliant wind turbines harness the power of the Industrial Internet to analyze tens of thousands of data points every second, helping to manage wind’s variability and provide smooth, predictable power. In addition to the brilliant features, GE’s new 1.7-100 meter wind turbine advances its 1.6-100 wind turbine series by utilizing electrical system upgrades to allow higher energy productions.

“GE is a trusted partner and a leader in wind turbine technology and innovation. Wind turbine innovation is key to the continued growth of the wind industry and we look forward to installing this new 1.7-megawatt technology machine,” said Armando Pimentel, president and CEO of NextEra Energy Resources.

The turbine’s blades will measure 100 meters in height. GE says the turbines are its highest capacity ones and the flagship products in its portfolio.

A new floating wind turbine is making its debut. The Bangor (ME) Daily News reports the University of Maine unveiled the VolturnUS, a one-of-a-kind offshore wind turbine:

VolturnUS will be the first grid-connected floating wind turbine in North America and the first concrete-composite floating turbine in the world, according to Habib Dagher, director of the UMaine Advanced Structures and Composites Center.

The 65-foot-tall turbine prototype is a one-eighth-scale version of the huge 6-megawatt turbines that would create a 5-gigawatt farm 20 miles off Maine’s coastline by 2030. About 170 turbines, each taller than the Washington Monument, would create the 5 gigawatts of energy, which is equivalent to the energy output of five nuclear power plants. Officials estimate that project could bring $20 billion of private investment to the state and create thousands of jobs.

Officials say, when complete, the wind farm will be able to produce electricity for about 10 cents per kilowatt hour by 2020. The first full-scale turbine with blades bigger than a 747′s wingspan is scheduled to go into the water in 2016.

Renderer-turned-biodiesel-maker Sanimax increases capacity at its 20 MMgy biodiesel refinery in DeForest, Wisconsin… although the company won’t say by how much. This Biodiesel Magazine article says Apache Stainless Equipment Corp. will provide the stainless steel tanks:

Apache supported Sanimax’s need for increased capacity by supplying an atmospheric stainless tank and three pressure vessels within the past month. Sanimax would not disclose how much additional production capacity the DeForest plant was installing.

The most recent tank supplied by Apache was used for fuel storage. The tank was constructed from stainless steel with exterior insulation and aluminum cladding. The tank increased storage capacity for Sanimax by 30,000 gallons. The 132-inch diameter, 45 ft. high and 19,000 lb. atmospheric tank was API 650 rated. Apache provided in-house insulation and aluminum cladding of the tank and was shipped via Apache truck.

Apache is known in the biofuel industry for supplying many types of specialized tanks.