About John Davis

Domestic Fuel welcomes our newest blogger, John Davis. John is a 20 years+ veteran of traditional news and is getting his first taste of this "new media." We've known John since Chuck hired him to work at the Brownfield Network in January, 2000 after he served an 11 year stint in the U.S. Air Force as a broadcast journalist. John lives in Jefferson City, Missouri with his wife, two sons, two dogs, a cat, a mouse, and a fish! You can read more about him and his thoughts at his own website John C. Davis Online.

Ethanol Policy Update to Kick Off Discussions at FEW

FEWroundtableLooks 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.

RINs Could Be Key to Aviation Biofuels Viability

epa-logoThe 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.

“It means there is an economic value assigned to the renewable content in jet fuel that can help the producer of that fuel get closer to the price of traditional jet fuel,” Young said…

But with supplies of biojet still extremely limited, most industry goals are still modest. Airplane manufacturer Boeing, for instance, wants biojet to account for 1% of the industry’s 600 million gallons/year of jet fuel consumption by 2015.

The aviation industry, biofuels producers and the federal government have been investing in research to bring down the cost of making biojet, as well as financing more refineries.

Brooke Coleman, executive director of the Advanced Ethanol Council, said RINs are key to that.

“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.

Idled Louisiana Renewable Diesel Plant Could Be Re-Opened

DynamicFuels3The 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 to Supply New Turbines for Michigan Wind Farm

GE wind turbine1GE 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.

U of Maine Unveils Floating VolturnUS Wind Turbine

VolturnUSA 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 goal is to be the first to do it and to do it right,” Dagher said Wednesday during an event at the university’s Offshore Wind Laboratory at the 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.

Sanimax Building Capacity at Wisconsin Biodiesel Plant

sanimaxRenderer-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.

MidAmerican to Invest $1.9 Billion in Iowa Wind Energy

midamerican-energyMidwest-based MidAmerican Energy Co. is investing $1.9 billion in wind energy by adding up to 1,050 megawatts of wind generation, consisting of up to 656 new wind turbines, in Iowa by the end of 2015. This article from the Iowa City Press Citizen says the utility’s investment will create lots of green jobs in the state, without tapping any state tax dollars to do it:

MidAmerican Energy, a utility serving 714,000 customers in Iowa, Illinois, Nebraska and South Dakota, said the project would create 460 construction jobs over two years and 48 permanent jobs, primarily workers needed to maintain the 656 wind turbines the utility will build through 2015.

The permanent jobs will create $2.4 million annually in pay for workers, MidAmerican said. The construction workers will take home $30 million, said Lt. Gov. Kim Reynolds. “That’s over 500 Iowa residents who will bring home a paycheck to provide for their families,” she said.

The project will add 1,050 megawatts of wind generation, pushing the utility’s total to 3,335 megawatts of energy. As a result, MidAmerican expects that about 40 percent of its power to Iowa customers will come from wind.

“That is marvelous news,” said Harold Prior, executive director of the Iowa Wind Energy Association. “MidAmerican is one of the top utilities in the country as far as embracing wind energy.”

In addition, the project is expected to lower consumer’s utility bills. Officials in the Hawkeye State also believe this sends a message to the rest of the country that Iowa is innovative, especially when it comes to wind energy. The state is on track to generate 10,000 megawatts of wind power by 2020.

While MidAmerican is not getting state aid for this project, it will receive federal wind production tax credits.

Beef Ranches as Biodiesel Refineries

humphreyThe next set of biodiesel refineries will probably continue to be in rural America, but they might be part of livestock operations. This article from BeefProducer.com says Arkansas State University researcher Kevin Humphrey sees real potential for ranchers to produce their own biodiesel from oil seed crops, waste oil or tallow:

“If all you want to do is extract oil and meal, you can do that. If you want to extract and produce meal and then also produce biodiesel, you can do that,” he says.

Humphrey is using waste oil and oil seed crops — soybeans, canola, and camelina — to make biodiesel. He adds he hasn’t used animal fats but that is a viable option.

Matt Roberts, vice president of marketing for Springboard Biodiesel, says if the oil is collected free, as might be beef tallow from rendering, the biodiesel will cost about 95 cents per gallon to make. That price includes the cost of the chemicals to make the biodiesel — methanol, lye, and sulfuric acid.

The article goes on to point out that with many of the biodiesel feedstock oilseeds, especially soybeans, the resulting meal from the crush is a high quality feed. Plus, the glycerin from biodiesel production can be a livestock feed and an ingredient in soaps, lotions and lubricants.

The author also spoke with Darrell Wood, cattle rancher and owner of Leavitt Lake Ranches in Vina, California, who believes a ranch-based biodiesel refinery might just make his place more sustainable.

“It just opens the door for all kinds of possibilities,” Wood says.

Pretty good article. Give it a read here.

Intertek Biodiesel Lab Earns BQ-9000 Certification

IntertekThe Intertek biofuels lab in Romeoville, Illinois has earned an important designation from the National Biodiesel Board (NBB). This company news release says the Intertek lab is now listed as a testing facility on the BQ-9000® website and is a preferred lab for BQ-9000® producers and marketers by the National Biodiesel Accreditation Commission (NBAC):

NBAC, a committee of the NBB, reviews and approves laboratories interested in becoming a BQ-9000® Certified Laboratory. The laboratory must have a quality management system that meets the requirements of the NBAC, and analyze biodiesel following the ASTM D6751 Standard Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels, and follows various ASTM, UOP and EN test methods referenced within the specification.

Jeff Kaylor, Regional Vice President for Inland Waterways, stated, “The award of the BQ-9000® certification for biodiesel testing is an honor for our staff and the biodiesel laboratory. Intertek is committed to providing our clients with reliable, high quality, biofuel testing and inspection services, in the USA and on a global basis.”

Intertek has a network of biofuel laboratories that test a wide range of renewable fuel products and blends, including biodiesel, ethanol, and biomass fuels.

Wilks’ Biodiesel Analyzer to Meet ASTM Standards

Meeting ASTM methods D7371 and EN 14078 for biodiesel standards usually requires FTIR spectrometers, an expensive proposition considering the equipment would be placed on a loading dock. This article in Biodiesel Magazine says Wilks Enterprises has something that could help producers meet those ASTM standards with a fast, easy-to-use and inexpensive infrared method:

wilksanalyzerThe InfraCal Biodiesel Blend Analyzer is a rugged, compact, specific-analysis fixed-filter infrared analyzer that is easy for fleet managers, distributors or regulators to use. It reads out directly in percent biodiesel and provides the user with the capability to measure the blend ratio on-site in 30 seconds. Its measurement range is zero to 100 percent with an accuracy of plus or minus 0.20 percent and can be operated by personnel having little or no knowledge of infrared analytical techniques.

The InfraSpec VFA-IR Spectrometer is a spectral range analyzer that contains a linear variable filter and a detector array covering the wavelength range of 5.4-10.8 μm (1850-925 cm-1). This provides the capability to not only measure biodiesel in diesel, but also ethanol in gasoline or water in ethanol. It is a compact, portable instrument with a simplified PC interface that provides nontechnical personnel with the ability to make measurements on-site at the blending terminal, as well as the manufacturing facility or laboratory.

The company touts the InfraCal Biodiesel Blend Analyzer and InfraSpec VFA-IR Spectrometer as ideal workhorses, specifically designed for use in the field. This ASTM method now goes before the full committee for voting and should be approved and accepted before the end of this year.

Kit Teaches Students Wonders of Soy Biodiesel

BiodieselChemistryKit1Biodiesel made from soybeans is a clean fuel for many gas tanks, including the buses that haul kids to school. Now those same children hauled by the green fuel can also get a lesson in chemistry from it. The Indiana Soybean Alliance is offering a Soy Biodiesel Chemistry Kit, touted as a valuable educational science lab for high school students, free of charge to teachers in Indiana and just $225 to out-of-state teachers:

Developed by Purdue University researchers and public school teachers, the kit is an engaging way to apply the basic skills and principles of chemistry. It’s also useful for showing high schoolers real-world chemistry applications and the growing importance of the alternative fuel industry, which is primarily derived from renewable natural resources like soybean oil.

“The lessons offered in the kit are aligned with the National Science Education Standards, and we think that it is an important component to encourage teachers to incorporate these lessons into their classrooms,” said Don Wyss, chairman of ISA’s biofuels committee and a farmer from Ossian, Ind.

The kits have enough supplies for 20 students working in pairs to perform each of each of the six hands-on exercises and experiments. More information is available here.

Farmers Encouraged to Ask for Higher Biofuels Blends

combine1While we talk a lot about using more biodiesel and ethanol, there’s no more fitting place to use the green fuels than the farms where it all starts. A Minnesota farmer took his own advice to use more biofuels to heart, and this article from the Rochester (MN) Post Bulletin explains most farmers should use higher blends because their equipment can handle it:

[Eyota, Minn. farmer Dan] Brandt, who is president of the Olmsted/South Wabasha County Corn and Soybean Growers, discussed his idea of encouraging more biodiesel use with directors and members of the group at their annual meeting. They liked it and encouraged him to proceed…

He’s asking farmers to fill up their farm tanks this spring with higher blends of biodiesel and ethanol. A Twin Cities fire department runs on B20 year-round, he said.

He talked to three fuel suppliers who said they would be ready to supply E20 or E30 or B20 to farms.

“And that’s what farmers don’t know,” Brandt said.

Call your fuel dealer, he said, and ask them to bring a higher blend. Prices should be comparable.

“Nobody’s asking for it (higher blends), and that’s what we have to change,” Brandt said.

The article goes on to quote Kaleb Little, communications and member specialist with the National Biodiesel Board, who says the majority of agricultural manufacturers design their engines to use at least B20, some even allow the use of higher blends. New Holland engines can run B100, Little said.

New Yeast Strain Could Cut Cellulosic Ethanol Costs

Liu1Researchers at the U.S. Department of Agriculture have developed a new strain of yeast that could cut the costs of cellulosic ethanol production. This Agricultural Research Service (ARS) news release says the work is being done at the agency’s National Center for Agricultural Utilization Research in Peoria, Ill.

ARS molecular biologist Zonglin Lewis Liu and his colleagues determined that this yeast strain can break down and ferment the sugars in corn cobs left behind after the compound xylose—which is sometimes used for industrial activities—has been extracted. The new strain of yeast, Clavispora NRRL Y-50464 (Y-50464), can tolerate cob-derived compounds that interfere with yeast growth and fermentation rates.

It is able to grow rapidly at 98.6 °F, so it thrives at the higher temperatures needed to optimize simultaneous saccharification and fermentation (SSF) rates. SSF is a one-step process in cellulosic ethanol production that combines releasing and fermenting feedstock sugars…

The scientists added the enzymes cellulase and beta-glucosidase, which are often used to break down residues and extract sugars, and observed that Y-50464 reached its peak ethanol production rate of 25.7 grams per liter 5 days after the experiment began. But the yeast actually produced more ethanol, 26.6 grams per liter in 5 days, without the addition of beta-glucosidase.

Confirmation of beta-glucosidase in Y-50464 will eliminate the need to include the cost of that additional enzyme to the process.

New Mandate to Boost Biodiesel in Canada

canada flag1The Canadian Renewable Fuels Association (CRFA) welcomed the proposal of a new renewable diesel mandate in Ontario. The measure would be based on fuel percentage and carbon intensity and replaces the current biodiesel tax exemption for all diesel sold in the province. It’s also expected to boost biodiesel production in Ontario.

“These consultations are a step in the right direction for Ontario,” said Kevin Norton, Chief Executive Officer of BIOX Corporation. “Provincial mandates provide clarity for diesel refiners and importers. As the largest biodiesel producer in Canada, the implementation of a renewable diesel mandate in Ontario would provide us with market certainty right in our backyard and support the significant capital investment we have made at our Hamilton facility.”

“A mandate would help ensure Ontarians realize not only the strong economic benefits, but also the environmental advantages that come from burning a cleaner more sustainable fuel in the most populous and traffic congested region of Canada,” [said Todd Moser, Vice President and General Manager at Rothsay].

“Today’s announcement is welcome news for our renewable fuels industry and the farmers we work so closely with,” said CRFA President W. Scott Thurlow. “Domestic biofuels production delivers proven environmental and economic benefits for local communities – including cleaner air and more consumer choice at the fuel pump. We look forward to participating in these important consultations and encourage political parties of all stripes to support this initiative without delay.”

While Canada has a 2 percent biodiesel mandate, the CRFA has complained that in practice it hasn’t required as much biodiesel blending as it would seem. This new proposal is seen as putting more certainty behind the government’s commitment to biodiesel.

REG Plans to Buy Soy Energy 30 MGPY Biodiesel Plant

reg-logoThe nation’s largest biodiesel maker is going to get a bit bigger. Ames, Iowa-based Renewable Energy Group (REG) announced it is buying Mason City, Iowa’s Soy Energy and its 30-million gallon per year capacity biodiesel plant for $11 million in cash and the issuance of a $5.6 million promissory note to Soy Energy. This company news release says the plant was originally built in 2006, bought by Soy Energy and upgraded in 2010 to use more raw materials, such as animal fats and used cooking oil, but was shuttered last year.

“Renewable Energy Group’s offer provides the best value for Soy Energy unit holders while helping unit holders achieve their mission for promoting economic development in the area,” said Jeff Oestmann, Soy Energy’s President and CEO. “In addition, REG’s procurement know-how and proven business model of using lower cost raw materials makes them a reliable operator for this plant.”

REG plans to repair then restart the refinery and further upgrade the plant in the future. The acquisition would increase REG’s biodiesel production capacity to 257 million gallons annually. REG currently owns seven active biodiesel refineries in five states, including nearby plants in Newton and Ralston and Albert Lea, Minn.

“We are committed to the people of Mason City, Midwestern farmers and livestock producers and those who supply the fats, oils and greases we will buy,” said Daniel J. Oh, REG president and CEO.

The re-opening of the plant will put 30 full-time wage earners back on the payrolls.