Domestic Fuel

Boise, Idaho is certainly famous for its potatoes, and just about everyone’s favorite way to have those spuds are french fried. A local cab company is looking to take advantage of all that leftover cooking oil by turning it into biodiesel to run in its vehicles. KBOI-TV reports that Recab wants the idea to catch on in other cities in America’s Northwest:

Recab will soon have older model Mercedes Benz cars that have been converted to run on bio-diesel. One of the owners James Orr got the idea from his love of vintage cars and the environment.

“Whenever I realize these cars are as reliable as they are and they could be used in such an eco friendly way that’s what spawned the whole concept,” said Orr.

The company expects its french-fry-powered cabs to be on the road in a couple of weeks.

It wasn’t that long ago that Europe was a champion of biofuels, in particular, biodiesel, as just a few years ago the continent adopted a policy of having 10 percent of transportation fuels come from renewable sources, including biofuels. This boosted biodiesel demand, coupled with favorable tax laws and the popularity of diesel vehicles. This piece in Public Service Europe says that when cheaper imported vegetable oils replaced European biofuels crops, there was pushback that was unfounded and really amounted to trade protections for Europeans, and now the continent is moving to a 5 percent usage level … basically where it stands today. But the article says it’s not too late for Europe to re-reconsider its biofuels policy:

Therefore, with this cap, the EU endangers – or reinterprets – its own 10 per cent target leaving the status quo, conventional oil, as the biggest winner. And it strikes a blow to equity and development. Shall we continue to import oil from rich countries so they can become richer rather than taking the opportunity to import biofuels from poor countries? Wild, rapid policy shifts like this have costs. They disrupt markets, stifle innovation and undermine the EU’s credibility.
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The head of the National Biodiesel Board is making his case in defense of the green fuel. NBB CEO Joe Jobe recently responded in the Wall Street Journal to a previous article that tried to claim advanced biofuels aren’t being produced on a commercial scale:

Biodiesel is an EPA-designated advanced biofuel that’s made from an array of resources including waste fats and greases and agricultural oils. For the past two years, our industry has exceeded national targets and produced more than one billion gallons annually of clean, renewable fuel.

Most importantly, however, the Renewable Fuel Standard is good policy because it is working to address the fact that our transportation fuel supply, which drives our economy, is reliant on a single source.

Jobe goes on to say that the price of petroleum is not based on supply and demand factors in the U.S., but on economic and political factors in “unstable and hostile regions of the world.” And he says this will continue, even if there is more domestic production of petroleum. He adds that diversifying into renewable fuels, such as biodiesel, will break the addiction and risk of having petroleum as a single transportation fuel source.

A California-based biodiesel maker is the first producer in the country to earn the BQ9000 Laboratory certification. This company news release from Community Fuels says they received the designation to go along with their earlier BQ9000 Producer certification:

“We are serious about quality and believe that biodiesel with reliable and predictable fuel performance is necessary for our industry to grow and prosper. Our extensive in-house laboratory, highly skilled personnel and analytic capabilities set us apart from others.” said Christopher Young, Director of Operations for Community Fuels.

This certification also is expected to expand Community Fuels offerings which now include third party biodiesel testing for fuel produced by others. “Unlike other laboratories that perform a broad range of services, we specialize in testing and evaluating feedstock and biodiesel. This makes our laboratory a perfect choice for other producers, many of which do not have in-house capabilities to test and certify their fuel.” said Mr. Young.

You can read more about the BQ9000 Laboratory certification here.

It seems like they’re natural enemies – biofuels producers, particularly biodiesel and ethanol, versus Big Oil, as each competes for a place in the gas tanks of vehicles in America and around the world. But does there really need to be such enmity between the two, with biofuels producers accusing oil companies of trying to derail increased ethanol and biodiesel levels in transportation fuels and Big Oil saying don’t blame us?

In this edition of the Domestic Fuel Cast, listen as we talk to stakeholders on both sides of the game, as well as those who point out that everyone is in the same game: providing energy.

You can listen to the Domestic Fuel Cast here: Domestic Fuel Cast - Oil Vs. Biofuels - Can't We All Just Get Along?

You can also subscribe to the DomesticFuel Cast here.

SeQuential-Pacific Biodiesel is teaming up with some pretty prominent companies in the Seattle area to turn used cooking oil into biodiesel. This column by the company in Biodiesel Magazine says it partnered with CenturyLink Field, Pike Place Market, Safeco Field, Taco Time Corp. and the University of Washington to create a closed-loop production cycle:

In 2012, SeQuential-Pacific recycled enough oil from Washington businesses to produce 1.48 million gallons of biodiesel and offset more than 10 million pounds of carbon. These partnerships also have tangible economic benefits. Restaurants working with SeQuential-Pacific are eligible for financial rebates for their used cooking oil. In addition, biodiesel made by SeQuential-Pacific is sold to commercial and retail fuel distributors throughout the state.

“Partnering with SeQuential-Pacific Biodiesel was a natural fit for Taco Time,” said Colin Ury, Vice President, Business Affairs, Taco Time Northwest. “We have a company-wide commitment to supporting local sustainability efforts, and we love that our waste oil gets recycled into a locally made eco-conscious product that can be purchased right here in our own community.”

Founded in 2005, Sequential-Pacific Biodiesel is the longest running commercial biodiesel producer in the Pacific Northwest, recycling cooking oil collected from local restaurants, businesses, hospitals and schools.

Trader CME Group will be offering nine new futures contracts for Renewable Identification Numbers (RINs) for biodiesel and ethanol, among other renewables. This company news release says they’ll be listed by and subject to the rules and regulations of NYMEX.

“With the recent increase in volatility in RINs prices, we’ve seen strong interest from our customers and other market participants for cost-effective ways to manage their risk in this market,” said Gary Morsches, Managing Director Global Energy, at CME Group.

• D6 Ethanol

They’ll be settled based on Argus Media’s prices for RINs and are touted as a useful hedge for the price risk associated with the Renewable Fuel Standard (RFS2).

In honor of Earth Week, the Washington State Department of Transportation has outlined some key points in how to have a clean, sustainable supply of energy. And a couple of items from the top of the list of things the department is doing itself include biodiesel:

Some recent WSDOT initiatives to reduce carbon emissions and conserve natural resources include:

“WSDOT is already considered a national leader in transportation technology and sustainability,” said Secretary of Transportation Lynn Peterson. “I hope to build on this strong reputation by partnering with communities to help us maintain our previous investments and continue building a smart multimodal system for the future.”

WSDOT also says people can do their parts by driving alternative fuel and electric vehicles, among other energy-saving initiatives.

With the tag line of “escape completely,” Princess Cruises looks like it’s trying to escape to a more environmentally friendly fuel: biodiesel. This company news release says it has been honored by the Port of Seattle with a Gold Level Green Gateway Award for the line’s environmental stewardship, including turnings ships’ used cooking oil into biodiesel.

“We’re gratified that the port has recognized us for making a difference in local environmental efforts,” said Jan Swartz, Princess Cruises executive vice president. “Passengers come to beautiful ports such as Seattle to experience the area’s natural beauty, so we are committed to doing our part to keep it that way.”

The company goes on to point out that its environmental goals and policies go beyond what is required by law and how Princess Cruises is committed to high environmental standards.

Researchers in the United Kingdom have figured out how to produce biodiesel from E. coli bacteria. This news release from the University of Exeter says the work with Shell Oil makes a product almost exactly the same as petroleum diesel, removing any blend limits other biodiesel forms might require:

Professor John Love from Biosciences at the University of Exeter said: “Producing a commercial biofuel that can be used without needing to modify vehicles has been the goal of this project from the outset. Replacing conventional diesel with a carbon neutral biofuel in commercial volumes would be a tremendous step towards meeting our target of an 80% reduction in greenhouse gas emissions by 2050. Global demand for energy is rising and a fuel that is independent of both global oil price fluctuations and political instability is an increasingly attractive prospect.”

The release goes on to talk about how E. coli bacteria turn sugars into fat, and thus, the oils to serve as a feedstock for the biodiesel.

Indonesian and European Union (EU) officials will meet to discuss allegations by the EU that Indonesia is illegally subsidizing biodiesel exports to Europe. The Jakarta Post reports says the Indonesians are confident they’ll be cleared of any wrongdoing:

An investigation initiated by the European Commission in November said that Indonesia had illegally subsidized its biodiesel producers.

The government subsidy, according to Ernawati, was actually only Rp 1,000 per liter and was given to boost domestic consumption of the eco-friendly fuel. She claimed that the subsidy did not affect the price of Indonesian biodiesel in the international market and that the subsidy had been given only when biodiesel prices were higher than that of regular diesel fuel.

The EU is also accusing Indonesia and Argentina of dumping biodiesel in the EU market by selling it at lower prices than available locally.

Energy company Kinder Morgan has announced it will soon start blending biodiesel at its Las Vegas and Phoenix terminals. This Reuters article says the company made the decision based, in part, on the upswing in Renewable Identification Numbers values:

The company is benefitting from a spike in the price of renewable credits, known as RINs. The move is “positive for us because we generate excess RINs at our transmix facilities,” said CEO Richard Kinder during a conference call.

He said Kinder Morgan generates 700,000 gal/month of excess RINs. “We are selling them on a monthly basis to a customer who wants to take all we have,” said Kinder, without specifying the types of RINs.

Biodiesel RINs have risen from 45 cents/RIN at the beginning of this year to current prices of about 80-90 cents/RIN.

The latest Chevy to hit the streets, the new 2014 Chevrolet Cruze Clean Turbo Diesel, capable of using B20 biodiesel blends, is being touted as getting better mileage that some hybrids out there. This company news release points out the Cruze Clean Turbo Diesel gets an industry best EPA-estimated 46 MPG on the highway, better than any non-hybrid passenger car in America:

“We harnessed generations of diesel expertise to adapt our world-class global engine for the North American market,” said Gary Altman, chief engineer, Chevrolet Cruze Diesel. “The Cruze Diesel is the best diesel passenger car out there. Chevrolet is redefining the meaning of great fuel economy with this car.”

Cruze Diesel also beats its rivals in performance with a segment-leading estimated 148 horsepower (110 kW) and estimated 258 lb-ft of torque (350 Nm), and can go 0-60 in about 8.6 seconds. Its advanced 2.0L turbo-diesel engine has an overboost feature capable of increasing torque to an estimated 280 lb-ft (380 Nm) for short bursts of stronger acceleration when needed, such as entering freeway traffic.

While Chevy touts the Cruze Diesel as its cleanest diesel passenger car engine, generating 90 percent less Nitrogen Oxide (NOx) and particulate emissions when compared to previous-generation diesels. Just think how much cleaner it will be when you use clean-burning biodiesel in it.

Our friends at the National Biodiesel Board are hosting a webinar on how making biodiesel from co-products of food production affects the cost of protein in the food supply on Monday, April 29, 2013 3:30 PM – 4:45 PM CDT:

We’ll also examine how to grow the current biodiesel feedstock supply responsibly and sustainably in the context of federal policies like the Renewable Fuels Standard. In addition, we’ll hear about some promising new research from the Danforth Plant Science Center which shows an increase in soybean oil yield, and its corresponding effect on protein.

Speakers:
Alan Weber, Feedstock Programs Manager, National Biodiesel Board
Sam Wang, Professor of Plant Sciences, University of Missouri – St. Louis; and Member and PI, Donald Danforth Plant Science Center
Chris Schroeder, Director, Centrec Consulting Group, LLC

Sign up here for this interesting conversation.

A big issue for biofuels producers, especially those in the cellulosic branch, is trying to come up with enzymes that can crack the multitude of biomass structures to unlock the sugars within, and thus, unlock the fuel trapped within.

“The enzymes have always been one of the Achilles’ heels of the cellulosic side,” Mark Emalfarb, CEO of Dyadic International, a biotech company that turns DNA into the proteins and enzymes for a variety of uses, including biofuels production, told me at the recent Advanced Biofuels Leadership Conference. “We have a fungal cell that we have created from a Russian fungus that for the last 20 years we’ve developed into a protein factory,” encoding genes with different enzymes to get the sugars for biofuel production.

Because there are differences in what will unlock the sugars every biomass variety, Mark says Dyadic’s process is helpful because it can make all these different enzymes from one fungal cell and one fermentation. “We’re not making five different fermentations and blending five different enzymes together, it’s all produced simultaneously out of the same cell line.” He points to one of their licensees, Abengoa Bioenergy, building a 25 million gallon cellulosic ethanol plant in Kansas, which using this technology allows them to make their own enzymes for half the cost … sometimes the difference between operating in the red or in the black.

“This enables you to do things you couldn’t do before, and to do them on-site without the profit margins the enzyme companies want to charge will make the difference,” Mark says.

Listen to more of my interview with Mark here: Mark Emalfarb, CEO of Dyadic