Domestic Fuel

The new, proposed Environmental Protection Agency rules for the Renewable Fuels Standard has the biofuels community split over if they will be good for the green fuels. The point of contention has to do with the impact Indirect Land Use Change (ILUC) will have on biofuel production. Under the new rules, biodiesel made from soybeans has been deemed to reduce greenhouse gas emissions by only 22 percent… while it must reduce those emissions by 50 percent if it wants to count toward the RFS 1-billion-gallon goal by 2012. There also are emission goals for ethanol, but existing corn ethanol plants have been exempted; existing biodiesel refineries did not get the same break.

So, what’s good news for ethanol… and welcomed in that community… is bad news for biodiesel. The National Biodiesel Board was on Capitol Hill today, where Vice President of Federal Affairs Manning Feraci told the U.S. House Committee on Agriculture, Subcommittee on Conservation, Credit, Energy and Research that the new requirement would seriously imperil the biodiesel industry:

“By statute, EPA must consider significant indirect emissions when calculating a renewable fuel’s emission profile. Unfortunately, it appears that the proposed rule EPA unveiled yesterday relies on uncertain, inexact assumptions pertaining to Indirect Land Use Change in calculating biodiesel’s greenhouse gas emission profile. The result is that biodiesel produced from domestically produced vegetable oils are disqualified from the Biomass-based Diesel program. There are many factors unrelated to U.S. biodiesel production that impact land use decisions abroad. For example, in Brazil, forestry, cattle ranching and subsistence farming drive land use decisions, yet the EPA’s proposed methodology appears to attribute this change to U.S. biodiesel production. This assumption defies common-sense…

“As a result of these dubious land use assumptions, the EPA’s proposed rule restricts feedstock for low-carbon diesel replacement fuel to only animal fats and restaurant grease. Vegetable oils account for more than sixty percent of the feedstock that is available to meet the RFS-2 Biomass-based Diesel targets, and the RFS-2 volume goals simply cannot be met if vegetable oils are disqualified from the program. Even under the so-called pathway for biodiesel that is briefly outlined in the proposed rule, there will not be enough feedstock available to meet the RFS-2 volume goals for Biomass-based diesel. This outcome is not consistent with either sound science or sound energy policy.

Meanwhile, the folks in the algae-biodiesel business seem happy with the proposed EPA changes. Dr. John Scott, chairman of PetroAlgae, released a statement today in favor of the nearly $800 million in biomass funding that will become available:

“This is a good first step toward building America’s clean energy economy, but it’s not the end game. Going forward, two things will be critical: investing in micro-crops like algae that are more productive and do not jeopardize our food and water supplies; and making sure we back solutions that are commercially viable today and sustainable over the long term.”

The 31st Symposium on Biotechnology for Fuels and Chemicals is coming up May 3-6 in San Francisco, with more than 800 scientists expected to attend sessions on topics ranging from commercialization of biofuels and their long-term sustainability to emerging technologies and turning algae into fuel.

Government and private sector support for research, development and deployment of renewable fuels and chemicals technologies is at an all time high. This year’s Symposium provides a superb forum for experts from around the world to gather to discuss the latest research breakthroughs and results in this exciting and growing field. This year’s scientific program is designed to facilitate effective exchange of new information and technical progress among attendees from industrial, academic, and government sectors.

The meeting is organized by the Society for Industrial Microbiology, hosted by the National Renewable Energy Laboratory and Oak Ridge National Laboratory, and sponsored by the Department of Energy’s Biomass Program. More information is available here.

A group of experts are slated to speak on the commercialization of biofuels at the 31st Symposium on Biotechnology for Fuels and Chemicals on May 3-6 in San Francisco. Speakers will include scientists from the National Renewable Energy Laboratory (NREL), Oak Ridge National Laboratory (ORNL), Lawrence Berkeley National Laboratory (LBNL), the Energy Biosciences Institute (EBI), the Department of Energy’s Joint BioEnergy Institute (JBEI) and UC Berkeley, as well as private companies.

Sessions will focus on a variety of special topics: Biorefinery Deployment, highlighting recent progress in developing and operating demonstration-scale and commercial-scale integrated biorefineries; Biofuels Logistics and Sustainability, touching on the the potential of lignocellulosic biomass; International Commercialization of 2nd Generation Biofuels, presenting on recent international progress to accelerate deployment of advanced biofuels technologies; Development and Commercialization of Algal-based Biofuels, focusing on efforts underway to develop and commericalize algal-based biofuels; and Emerging Biofuels and Chemicals: highlighting on research and development of new fuels and chemicals from renewable feedstocks.

The meeting is organized by the Society for Industrial Microbiology, and hosted by NREL and ORNL, and sponsored by the Department of Energy’s Biomass Program. Cosponsors include EBI, NREL, ORNL, JBEI and other national laboratories and private companies.

More than 800 are expected to attend the event. For more information, go to http://www.simhq.org/meetings/sbfc2009/index.html.

A major federal investment in the entire value chain of advanced biofuels and biobased products commercialization is needed to move advanced biofuels and emerging biobased materials to market, according to the executives of companies who are working to make that happen.

During a teleconference today hosted by the Biotechnology Industry Organization (BIO), representatives from cellulosic ethanol and other advanced biofuels companies gave updates on progress being made toward commercializing advanced biofuels and some of the challenges still to be overcome.

BIO Executive Vice President Brent Erickson says they are recommending the implementation of specific policies to provide funding in a number iof areas, including feedstock development, enzymes and fermentation organisms, algal oil production, alternative fuel distribution networks and vehicles, and biorefinery construction.

“We need a new systems approach to advance biofuels throughout the whole value chain,” said Erickson. “We’re actually talking about creating a new energy infrastructure, which this country hasn’t done for over 100 years.”

They are requesting an immediate injection of capitol for biorefinery construction, feedstock development and fuel delivery infrastructure, which can be accomplished through existing programs within the Departments of Energy and Agriculture. They are also recommending an increase in the availability of E85 fuel pumps and flex fuel vehicles, as well as the certification of higher ethanol blends and the extension of the cellulosic producer tax credit.

BIO is holding its annual legislative fly-in this week and members of the organization will be meeting with administration officials and members of Congress over the next two days to communicate their ideas.

While algae-based biodiesel continues to grow in interest, producers of the REALLY green fuel are trying to find ways to make sure they can turn a profit… just like any biodiesel producer. Being able to grow algae in the more plentiful saltwater could be key to making the process profitable.

This story from the gas2.0 Web site says California-based Aurora Biofuels has completed an 18-month pilot project that produced 1,000 gallons of ATSM quality biodiesel in Florida open ponds of just 1/8th of an acre. Company officials say they could get as much as 6,000 gallons per acre when fully cranked up:

A company spokesperson stated, “In the near-term we expect to demonstrate that the economics of this process can produce biodiesel that is price-competitive with fossil fuels.” A 50 acre pond is scheduled for completion in 2010.

And the article goes on to point out there are other places working on saltwater algae for biodiesel:

In a similar vein, Australian researchers just released a report stating that they have found that biodiesel production for saltwater algae can be competitive with the production of petroleum diesel. However, they also state that due to the cost of transporting biodiesel from an algal farm, the best scenario may be to locate an electricity generating plant in the same vicinity and simply convert the chemical energy into electricity. Creating such a powerplant would also make new jobs for local workers. (The analysis used an assumption of about 1,000 acres of ponds.)

In addition, a new technique in New York is reported to cut the cost of making algae-biodiesel by 40 percent. They’re using a ‘continuously flowing fixed-bed’ and uses a solid rather than liquid catalyst, which allows the flow of biodiesel to stay constant. Researcher Ben Wen says this is the first economical way to produce biodiesel from algae oil.

Green pond scum will become green fuel at a new pilot production plant in Indiana.

Stellarwind Bio Energy, LLC, a producer of fuel oil from algae, announced the opening of its new small scale pilot production facility and corporate headquarters in Indianapolis. The plant has a 1/10th acre greenhouse, along with offices and an advanced research and development

Leveraging two years of research, design and development, the new headquarters located at 8440 W. 82nd Street, Indianapolis, IN, will allow Stellarwind Bio Energy to build a scaled pilot production facility deploying its PhycoGenic ReactorTM and PhycoProcessorTM. During this phase intensive effort will continue as the company refines its systems and manufacturing processes.

“Our vision statement says it all. Renewable, eco-friendly fuel sources are no longer an option; they are now a necessity. For years, science has known that algae are a far better producer of fuel oils than other biological sources. The problem has been to cost-effectively build a bioreactor that can inexpensively grow, harvest and process commercially viable quantities of fuel oil from algae. We are committed to deploying such a system,” states [Will Kassebaum, President and CEO of Stellarwind Bio Energy].

Company officials says their PhycoGenic ReactorTM will allow them to grow algae very cheaply… key to making the venture sustainable. They also claim that algae, which produces 10,000 gallons of fuel per acre each year, is a better biofuel feedstock than corn (150-330 gallons of ethanol per acre per year) or soybeans (70-100 gallons of biodiesel per acre per year). Plus, they say the oil from algae is easier to refine into gasoline, kerosene or aviation fuel.

That little green pond scum is growing more and more every day as a feedstock for a green fuel. And a group backing the turning of algae into biodiesel is hosting a summit to help make the fuel some green… money.

The National Algae Association‘s Mid-South Chapter is hosting the Atlanta Algae Workshop, entitled “Algae, Our New Biofuel,” at the Hampton Inn and Suites in Downtown Atlanta, Georgia on Friday, February 27th:

The event will kick off with a presentation by Barry Cohen, Director of the National Algae Association. Will Thurmond, Chairman of R&D for the NAA and author of Algae 2020 will be speaking and acting as moderator for several round-table discussions on innovations and scientific advancements in algae research and development.

For registration and more information, click on the workshop’s Web site.

A company working to make algae biodiesel comercially mainstream has teamed up with the U.S. government to come closer to that goal.

Biodiesel Magazine reports OriginOil Inc. inked an agreement with the U.S. DOE’s Idaho National Laboratory to validate and commercialize the Los Angeles-based company’s algae-to-oil technology into the mainstream market:

The multi-phase research program will focus on commercial scaling of OriginOil’s technology in the production of algae-based fuels by utilizing state-of-the-art equipment, capabilities, scientists and engineers of the Idaho National Laboratory. The initial phase will focus on the collaborative development of an energy balance model for photobioreactor-based algae systems. The company expects to use this model in the optimization of its algae-to-oil technology as early as the first quarter of this year. Subsequent phases will center on validation of OriginOil’s processes and piloting specific commercial applications.

In operation since 1949, Idaho National Laboratory is a science-based, applied engineering national laboratory dedicated to supporting the DOE’s energy research and national defense efforts. “Partnerships with innovators like OriginOil will accelerate our pursuit of national energy independence initiatives,” Ulrich said.

The magazine had reported late last year that OriginOil has been able to automate its algae cultivation and oil extraction system so it can grow algae to produce oil for biodiesel production.

On the heels of hosting the National Biodiesel Conference & Expo, San Francisco will be home to Algae Biofuels World Summit, March 23-25, 2009 at the Marines’ Memorial Club & Hotel.

Summit officials bill the meeting as the first major algae biofuels industry-building event and a unique forum where leading carbon generators, algae developers, biorefiners, financiers, investors, transportation companies and other key players in the algae biofuels value chain will connect and share…

The Algae Biofuels World Summit will be the first major event where all the communities in the algae biofuels value chain come together to discuss how to build a new algae biofuels industry. Unlike scientific research-oriented events, the goal of the Summit is to provide a forum where the algae community can discuss and learn how to build the links within the value chain that are necessary to make the algae biofuels industry a reality.

Power plant operators, industrial carbon generators, algae technology developers, algae equipment suppliers, algae project developers, biofuels refiners, financiers, carbon market players, oil companies, airlines, aircraft and engine manufacturers will be on hand to share their perspectives on what is needed to build a truly viable algae biofuels industry.

For more information and to register, go to the conference Web site.

Algae-biodiesel production company Solazyme, Inc. will be featuring its SoladieselRD(TM), the world’s first algal-based renewable diesel, at a summit this week in California.

This company press release posted on MarketWatch.com says SoladieselRD(TM) will be showcased at the Governor’s Global Climate Summit in Beverly Hills, CA, Nov. 18th-19th:

“We are glad to be a part of Governor Schwarzenegger’s Global Climate Summit and applaud him for bringing together U.S. and international leaders to address this critical issue. Moving towards the Copenhagen meeting in December, these opportunities to discuss all solutions to the global climate crisis have become vitally important,” said Harrison Dillon, co-founder, president and CTO of Solazyme. “In this search for solutions, Solazyme has taken a 150 million year process of making oil and condensed it to a matter of days to renewably produce oil that can be converted into fuels that not only address these challenges, but have already been proven to be fully-scalable on a commercial level.”

Solazyme’s unique process grows algae in the dark in large industrial fermentation tanks, where the algae are fed a variety of non-food and waste biomass materials including glycerol and cellulosic biomass. This allows the company to produce oil with a very low carbon footprint efficiently in a controlled environment. Solazyme’s fuels have already been road tested in unmodified vehicles for thousands of miles. Solazyme also recently announced that it has produced the world’s first algal based jet fuel which met all eleven of the tested key criteria for (ASTM) D1655 (Jet A-1). Additionally, Solazyme’s process is the very first bridge from non–food carbohydrates and certain industrial waste streams to edible oils and oleochemicals.

The folks at Solazyme would love to talk to people, one-on-one during the summit. Contact Beth Starkin at 212-931-6108 or bstarkin@peppercom.com.

More than 650 attendees and 50 speakers looked at the future of algae biodiesel at a recent conference in Seattle.

The Algae Biomass Summit, hosted by firms Wilson Sonsini Goodrich & Rosati and Byrne and Company, brought together those exploring the scientific and commercial advances of the field of the slimy green biodiesel feedstock. Our friends at Biodiesel Magazine covered the event sponsored by the Algal Biomass Organization and filed this report (and, of course, several others):

Mario Tredici from the department of agricultural biotechnology at the University of Florence in Italy said algae has many of the properties for a second green revolution that could help satisfy the world’s energy and food needs. However, algae have very specific culture requirements to produce near their theoretical potential. Changing light conditions as the density of cultures increase can limit the efficiency of the plants ability to convert sunlight into biomass. “Algae are not a miracle,” he said. “It must obey the laws of thermodynamics.” He does believe, with the proper technology and understanding of algae’s biology, that yields of 70 to 80 tons of algae can be produced per hectare (approximately 2.5 acres), producing 15 to 20 tons of oil and about twice that much protein.

The true value of algae will rely on the total amount of biomass not just the oil content, said Mark Tegan, chief executive officer of Inventure Chemical. Inventure processes biomass products into value-added products. Algae produce three distinct products – oil, carbohydrates and protein. Each component can be processed downstream into a variety of valuable products. “There is a lot of opportunity available in the chemical market,” Tegan said.

The coverage included discussions on how the current credit crisis might actually be good for the algae biodiesel business and the market potential of the feedstock and fuel.

Candidates for governor in Missouri aren’t seeing eye-to-eye on much these days (and trust me… we’re hearing and seeing plenty of tit-for-tat attack ads here in Central Missouri), but Republican Kenny Hulshof and Democrat Jay Nixon did seem to agree on the importance of renewable energy during their debate this week in Kansas City.

According to this story in the St. Louis Post-Dispatch, both men see alternatives as key for the economy:

With pocketbook issues uppermost in voters’ minds, both men promised to create jobs by beefing up job training and aggressively marketing the state to employers.

Asked for specifics, Nixon said the state should encourage construction of a windmill plant and an auto assembly plant for flex-fuel vehicles. Hulshof called for an oil refinery and research funding to turn algae into biodiesel.

But just in case you thought this debate was any kind of love fest, it was the ONLY thing the two seemed to agree upon. Oh well… back to the attack ads.

Algae has traditionally been a nuisance to catfish farmers, but it could end up being a new source of income for them and a new source of energy for the southeast.

Ron Putt, an associate research professor at Auburn University, has been studying the feasibility of using algae from catfish farms for biodiesel production. “Currently I have a small project that is going to demonstrate the ability to harvest algae from the catfish ponds in the western part of Alabama,” Putt says. “I see them as the core of the algae farming industry throughout the southeast. My goal is to turn the southeast conference into the new OPEC.”

He says catfish farmers have embraced the idea that believes could help the catfish industry which has been struggling with lower priced imports and high feed costs.

Randall Weiseman of Southeast Agnet interviewed Ron Putt at the recent Northwest Florida Bioenergy Conference and Expo. Listen to that interview here: john-harper.mp3

Podcast: Play in new window | Download (734.7KB)

Sapphire Energy is another step closer to bringing algae-based Green Crude Production to commercial scale with additional financing from existing and new investors, including an investment holding company owned by Microsoft Chairman Bill Gates.

The latest investments bring the company’s total funding to substantially more than $100 million, and Sapphire is now financed to scale up its production facilities to full commercial feasibility.

Sapphire Energy uses sunlight, CO2, industrial microorganisms, non-arable land and non-potable water to produce alternatives to common products made from petroleum. Sapphire’s Green Crude is similar to light sweet crude and can be refined into chemically identical fuel products such as gasoline, jet fuel and diesel products entirely compatible with the current energy infrastructure—from pipelines and refineries to cars and airplanes.

Sapphire hopes to achieve initial commercial production capability of 10,000 barrels per day of algae-based oil.