Domestic Fuel

One of the big issues that continues to dog the biofuels business, especially ethanol production, is the use of food crops as fuel sources. While many have made the case that the crops can provide both food AND fuel (consider the dried distillers grains from ethanol production, for example), a New Jersey-based company thinks it has a way to remove the food part from the debate altogether.

In this edition of the Domestic Fuel Cast, we talk to Kef Kasdin, CEO of Proterro, as she tells us about her company’s method of actually creating, not extracting, sugars. You’ll be able to hear how this process makes sugar for as low as 5 cents/pound… a pretty good bargain compared to 10-20 cents/pound of more conventional methods.

You can listen to the Domestic Fuel Cast here: Domestic Fuel Cast - Proterro Creating Sugars for Biofuels

You can also subscribe to the DomesticFuel Cast here.

And you can check out the video below to get a better explanation of how the process Kasdin describes works.

Progress on a new farm bill is all well and good but defending the Renewable Fuel Standard remains the top priority for the ethanol industry.

“The attack on the Renewable Fuel Standard is first and foremost and coupled with it is the blend wall,” said Growth Energy CEO Tom Buis st the National Association of Farm Broadcasting annual Washington Watch issues forum this week. “Oil has never been a fan of the RFS and they knew this day was coming. As we’re up against the 10% blend wall, rather than doing what the law allows and blending higher blends or helping to build out the infrastructure for higher blends to give consumers choice at the pump, they’ve decided they just want to eliminate it and eliminate competition.”

Buis notes that, despite weather challenges this year, corn growers will continue to grow enough corn to meet all needs.

Listen to an interview with Buis here: Interview with Tom Buis, Growth Energy

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

As the Senate and House Agriculture Committees begin to mark up a new farm bill this week, big changes are expected in the next farm bill when it comes to farm programs and ethanol is helping to make that happen.

At the annual National Association of Farm Broadcasting Washington Watch issues forum on Monday, Renewable Fuels Association president and CEO Bob Dinneen said the dramatic changes in farm programs expected are actually being made possible by the increased use of biofuels that has taken place under the Renewable Fuel Standard (RFS). “It used to be that the price of corn was far less than the cost of production and it was government farm programs that would make up the difference,” said Dinneen. “And one of the things that Congress intended with the value-added ethanol industry was creating a value for farmers that would allow them to reduce farm program costs and it has done exactly that.”

Dinneen said the Senate farm bill proposal, which is being marked up this morning in committee, does include an energy title, the farm bill is not a real focus for them but they do hope that the farm bill will include funds for USDA to support blender pump installation and the development of advanced biofuels.

In ethanol-related news over the past week or so we have seen senators request a probe into the European Union’s anti-dumping duties on ethanol, comments to the House energy committee on the RFS, and legislation introduced for an energy title in the next farm bill.

To find out more about all of those stories and more, we caught up with Renewable Fuels Association president and CEO Bob Dinneen to get his comments in this new edition of “The Ethanol Report.” We’ll be hearing more from him and others in the nation’s capitol next week when we attend the annual National Association of Farm Broadcasting Washington Watch.

Listen to or download the Ethanol Report here: Ethanol Report on Current Events

Subscribe to “The Ethanol Report” with this link.

A new study indicates that ethanol production is continuing to reduce its energy and environmental footprint.

The study, entitled “2012 Corn Ethanol: Emerging Plant Energy and Environmental Technologies”, found that recent innovations in corn ethanol production have resulted in increased yield per bushel even as less energy is required for production.

In this edition of “The Ethanol Report”, study co-author Steffen Mueller, PhD with the University of Illinois at Chicago Energy Resources Center, talks about the findings and Renewable Fuels Association President and CEO Bob Dinneen comments on the significance.

Listen to or download the Ethanol Report here: Ethanol Report on Efficiency Study 3:39

Subscribe to “The Ethanol Report” with this link.

A new study indicates that ethanol production is continuing to reduce its energy and environmental footprint.

The study, entitled “2012 Corn Ethanol: Emerging Plant Energy and Environmental Technologies”, found that recent innovations in corn ethanol production have resulted in increased yield per bushel even as less energy is required for production. Thermal energy use at a typical dry mill ethanol plant has fallen 9% since 2008, the study found, meaning the carbon footprint of corn ethanol continues to shrink.

The authors, Steffen Mueller, PhD, of the University of Illinois at Chicago Energy Resources Center and John Kwik, PE, of Dominion Energy Services, LLC wrote in summary, “Our work includes an assessment of over 50% of operating dry grind corn ethanol plants. On average, 2012 dry grind plants produce ethanol at higher yields with lower energy inputs than 2008 corn ethanol.”

“Furthermore, significantly more corn oil is separated at the plants now, which combined with the higher ethanol yields results in a slight reduction in DDG production and a negligible increase in electricity consumption,” the authors concluded.

Listen to an interview with Steffen Mueller here: Steffen Mueller, study author

Read the study 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.

Agriculture Secretary Vilsack today renewed a historic agreement with U.S. dairy producers to accelerate the adoption of innovative waste-to-energy projects and energy efficiency improvements on U.S. dairy farms, both of which help producers diversify revenues and reduce utility expenses on their operations. The pact extends a Memorandum of Understanding signed in Copenhagen, Denmark, in 2009.

USDA support for agricultural and waste-to-energy research has played a key role in the agreement’s success to date. Since signing the MOU, USDA has made nearly 180 awards that helped finance the development, construction, and biogas production of anaerobic digester systems with Rural Development programs, such as the Rural Energy for America Program (REAP), Bioenergy Program for Advanced Biofuels, Business and Industry Guaranteed Loan Program, Value Added Producer Grants, amongst others. These systems capture methane and produce renewable energy for on-farm use and sale onto the electric grid. Additionally, during this period, USDA awarded approximately 140 REAP loans and grants to help dairy farmers develop other types of renewable energy and energy efficiency systems at their operations.

Anaerobic digester technology is a proven method of capturing methane from waste products, such as manure, and converting into heat and electricity. The technology utilizes generators that are fueled by the captured methane. Dairy operations with anaerobic digesters routinely generate enough electricity to power hundreds of homes per year.

The Secretary was joined on a conference call to make the announcement by The Innovation Center for U.S. Dairy CEO Tom Gallagher and Doug Young, a farmer from NY who has benefited from this MOU.

Listen to that call here: USDA/Dairy MOU press call

Earlier this month, the winners were announced in the Clean Energy Challenge, and prize winner, Ornicept, has a unique technology that can aid in the mitigation of bird issues associated with wind turbines. The technology was developed last May by young entrepreneurs Justin Otani and his co-founder Russell Conard, who graduated from Indiana University. Early on they won a business plan competition called the “Best Competition,” that gave them the initial seed capacity. From there they relocated to Ann Arbor, Michigan.

Conard, says Otani is computer scientist with a bird habit and in college set out to create a computer program that could identify birds with video. When reaching out to biologists and other people on how he could improve the system, the commercial applications became apparent. Simultaneously, while Conard was working with biologists, Otani was working at the Johnson Center for Entrepreneurship for Innovation and running the on campus incubator and also serving as a consultant for student-started companies. It was through this process that he was connected with Conard.

Otani said there needs to be a balance between business and the need to protect wildlife – an issue that the wind industry is also dealing with. Eventually, the technology emerged and when it did, it was a state-of-the-art network of distributed cameras, computers, and computer vision algorithms. When working in tandem, it is a system for remotely collecting data on birds by species as they move through a survey zone.

What’s interesting, Otani explained, is that it may not be a whole wind farm that creates risks to bird but maybe one or two wind turbines that have the majority of impact. So if it’s pre-construction, using their data that lets you know where those high use areas are, you can often offset the placement of the turbines, even a 100 meters, and dramatically reduce the risk to birds.

Today, the technology is being beta-tested and refined and the plan is to roll-out the technology full scale soon. In anticipation of the launch, the Ornicept team will be displaying and discussing their technology during the upcoming American Wind Energy Association Conference & Exhibition taking place May 5-8, 2013 in Chicago.

Listen to my interview with Justin Otani here: Wind Energy Technology for the Birds

Have a question about renewable energy? Then look no further than Lee Enterprises Consulting based in Sherwood, Arkansas and your go-to guy, Wayne Lee. Lee has been a consultant for nearly 30 years and about a decade ago, began expanding his expertise into biofuels as people began coming to him with questions. He said he began fairly small with the goal of becoming the one-stop shop for those in the renewable fuels industry. Today, his firm has a breadth of talent in biodiesel, ethanol, biomass, cellulosic, biobutanol, waste-to-energy, wind, solar, and more.

So what types of services do they offer? Lee says in it upwards of 100.

And what might be a common request or question for his team?

For example, Lee said they are often contacted to do project feasibility studies such as the feasibility to build a biodiesel plant, If the the outcome is a green light, the client will often ask his group to serve as the project manager. In this case, they would help find experts to design and optimize the plant, build the plant, install the plant and bring you up to speed and get you trained. Lee said if this is four different people, he has found that if there is a problem, the four different companies would play the blame game. But if it is one person coordinating all the partners, then he or she can get down to the problem quicker and have it resolved in a timely manner.

As the environment continues to take center stage, I asked Lee if when working with his clients, he kept sustainability in mind. He noted, “If you look at the renewable fuels industry and the alternative fuels industry as a whole, there is a lot of overlap, but really it’s an all of the above approach. I can see an ethanol plant with a biodiesel plant sitting adjacent to it and perhaps add solar panels on the roof and wind turbines on the outside. I think that the key is Mother Earth will give us a lot of free stuff if we’re willing to take it.”

Lee added, “I think that alternative fuels is here to stay. I don’t think that there is bad and a good. There is a what’s good right now. My hope is over the next few years the alternative fuels industry becomes a little more mainstream. Petroleum is here to stay but it’s getting harder to find and harder to get and that’s going to make its price go up. And I think we all have a duty to keep the Earth clean and the way it was meant to be.”

Listen to Wayne Lee’s full interview here: Lee Consulting Enterprises: Alternative Energy Knowledge Center

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

According to Fuels America, the biofuels industry is getting its green on with improved sustainability measures adopted throughout the biofuel chain. The chain – from farm to fiber to fuel– is meeting needs for energy, food and fiber in a more environmentally sensitive manner each day. During a press call this week, farmers and ethanol industry experts gave a briefing on the increased sustainability measures taken in renewable fuel production from farm to fuel tank.

Despite significant efficiencies in water use, energy efficiency, and soil and land conservation, ethanol opponents are still insisting that biofuels are non environmentally friendly. But the agricultural industry and the biofuels industry explain this is simply not true. During the briefing, expert Fred Yoder, farmer and pas president of the National Corn Growers Association touted some of the new sustainable farming and harvesting technologies and noted that his father said he would leave the land is better health to his son and that he must pass on the land in better condition that it arrived to him.

Yoder was joined with Jan Koninkx, business director for biofuels with DuPont. The company is in construction of a commercial scale cellulosic plant in Nevada Iowa that when in production, will produce cellulosic ethanol from corn cobs and corn stover.

Finally, Adam Monroe, president of Novozymes North America, talked about the cutting edge enzymes they have developed with partners throughout the biofuels chain to help improve the fermentation and ultimate production of biofuels.

Listen to the full briefing here: Get Your Green on with Biofuels

According to a new report by Synapse Energy Economics prepared on behalf of the Civil Society Institute (CSI), if the U.S. ceases to burn coal, shuts down a quarter of existing nuclear reactors the trims its use of natural gas by 2050, the resulting increased reliance on wind, solar and other renewables will not result in a less reliable electricity grid. The new study finds that, in the envisioned 2050 with a heavy reliance on renewables, regional electricity generation supply could meet or exceed demand in 99.4 percent of hours, with load being met without imports from other regions and without turning to reserve storage. In addition, surplus power would be available to export in 8.6 percent of all hours, providing an ample safety net where needed from one region of the U.S. to the next.

“This study shows that the U.S. electricity grid could integrate and balance many times the current level of renewables with no additional reliability issues,” said Grant Smith, senior energy analyst, Civil Society Institute. “Recent improvements in both renewable technologies themselves and in the technologies that are used to control and balance the grid have been proceeding at a rapid pace, and the incentives and rewards for success in this area continue to drive substantial progress.”

“In contrast, the alternative—continuing to rely on increasing combustion of fossil fuels to generate electricity, and producing ever-increasing levels of greenhouse gases—is far less feasible, and presents much more daunting technical, economic, and social challenges to human and environmental welfare. In comparison, the challenge of integrating increasing levels of solar and wind power on the U.S. power grids requires only incremental improvements in technology and operational practices, added Smith.”

Listen to Grant Smith’s presentation here: Adding Renewables Doesn't Create Reliability Issues

Report co-author Dr. Thomas Vitolo, analyst, Synapse Energy Economics, explained, “Put simply, the message today is this: It is a myth to say that the United States cannot rely on renewables for the bulk of its electricity generation. This study finds that the projected mixes, based entirely on existing technology and operational practices, are capable of balancing projected load in 2030 and 2050 for each region—in nearly every hour of every season of the year.”

Listen to Tommy Vitolo’s presentation here: The Lights Will Stay On with Renewables
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While some of the talk at the recent Advanced Biofuels Leadership Conference has focused on pointing fingers at the oil companies and some of the oil companies pointing back, at least one biofuel provider was saying we need them both. Jennifer Holmgren (shown holding an award for being one of the movers and shakers in the biofuel world), the CEO of LanzaTech, a company that turns carbon monoxide into ethanol, wants to take an “all-of-the-above” approach.

“It is so important for us to get as much energy and fuel into the pool that we need to have all of the solutions that can provide sustainable fuels at the table,” including natural gas, petroleum, algae, biomass, among others, she says … all providing economic, social and environmental sustainability.

Jennifer admits that is easy to say but tough to do. She says we need to look at the current state as part of a long journey to commercialize these processes. She adds that both sides need to tone down their rhetoric and recognize that oil is not going away, but it’s not enough to meet all of our energy needs.

“If you can get both sides to agree that oil doesn’t give us all the answers but is a necessary piece of the equation, I think we’ll be fine,” she says.

Jennifer is encouraged that so many oil companies attended the ABLC and are involved in the renewable energy business. She believes it’s a good start of better trust and patience between biofuels and Big Oil.

Hear all of my conversation with Jennifer here: Jennifer Holmgren, LanzaTech