Domestic Fuel

The Energy Information Administration (EIA) has lowered its projection for cellulosic ethanol production in 2011, which means investment in next generation biofuels is more important than ever.

In a recent letter to Environmental Protection Agency (EPA) administrator Lisa Jackson, EIA administrator Richard Newell noted that they are now projecting cellulosic ethanol production will be just 3.94 million gallons next year, below the 5.3 million gallons projected in May as the target under the Renewable Fuels Standard in 2011. The estimate is based on EIA’s analysis of current projects and publicly available information regarding the potential for future projects. The agency anticipates only four companies will be capable of producing cellulosic ethanol next year.

Renewable Fuels Association President and CEO Bob Dinneen says encouraging investment in cellulosic ethanol is critical to meeting the goals of the RFS and should be important to the new Congress. “In that context, there will have to be a robust debate about how best to assure the continued growth and evolution of the ethanol industry, how to effectively attract capital to cellulosic ethanol technologies, how to commercialize other advanced biofuels like algae and butanol,” Dinneen said during a conference call with reporters this morning. “I constantly talk about not just the growth in the industry, but the evolution of the industry, and that means allowing the commercialization of new technologies to continue.”

According to Dinneen, an expanded cellulosic biofuels producer tax credit with a broader range of eligible advanced biofuels and the ability to allow developers to elect a refundable 30% investment tax credit would be a good way to help advanced biofuel commercialization.

Cobalt Technologies announced today that it has created a partnership with the U.S. Navy to develop performance jet and diesel fuels from biobutanol. The Cooperative Research and Development Agreement (CRADA) established a program that will convert n-butanol produced by Cobalt into biodiesel fuels using technology developed at the U.S. Naval Air Warfare Center Weapons Division (NAWCWD) in China Lake, Cali. Cobalt will have the option to obtain an exclusive license to commercialize process improvements developed under CRADA for the production of all military and consumer fuels.

“We are pleased to collaborate with the U.S. Navy to develop a renewable option for jet fuels,” said Rick Wilson, CEO of Cobalt Technologies. “It’s exciting to be part of this research, which will help relieve our reliance on foreign oil through the use of renewable fuels developed here in the United States. With our front end for producing renewable n-butanol and the NAWCWD’s technology for converting n-butanol into jet fuel, we can offer a complete process that directly addresses the military’s green fuels mandate.”

The U.S. military is the largest user of petroleum-based fuels in the country and the Navy is the largest single user. For several years, the military has been implementing its commitment to reduce its use of fossil-fuels. For the first time last year, several military jets flew using biodiesel blends, including algae, and a little more than a week ago, the U.S. Navy successfully tested an algae-fuel blend in a Command Boat.

”It is a privilege for NAWCWD chemists to work in partnership with Cobalt Technologies on this exciting technological venture,” said Dr. Michael D. Seltzer, head of NAWCWD’s Technology Transfer Program. “Anytime we can support the fleet and at the same time transfer important technology to the private sector, it is a win-win situation. As NAWCWD continues its leadership role within DoD in the research and development of alternative fuels, opportunities such as this are greatly valued.”

UC Riverside’s Center for Environmental Research and Technology (CE-CERT) is launching its new Transportation Fuels Research Center of Excellence. The Center was created with a $1.2 million grant from the California Energy Commission and the goal of the research and education facility will be to work on characterizing the emissions and performance of new alternative fuels. In addition, the center will ensure that new fuels will not have adverse environmental or health impacts.

“We are leaders in characterizing vehicle emissions and the consequences of those emissions,” said Tom Durbin, a research engineer at CE-CERT. “The establishment of this center and this grant allow us to continue and expand that work.”

The grant will allow the center to expand its studies on butanol, butanol/ethanol combination, and other mixed fuel combinations. They also want to learn how these fuels impact vehicle performance and emissions and understand their compatibility with different engine technologies.

To celebrate the center’s opening, UC Riverside is hosting a series of free community events on Oct. 14, 2010. The day will kick off with a National Alternative Fuel Vehicle Day mini-workshop to help attendees develop a basic understanding of alternative fuels and new technologies. This workshop is one of nearly 125 nationwide that are being coordinated by the National Alternative Fuels Training Consortium at West Virginia University. Following the workshop attendees will be able to view a collection of alternative fuels vehicles in the CE-CERT parking lot.

At 2 p.m., the USDA’s Draft Biofuels Strategic Production Report, which outlines how the biofuels industry can serve as a strong economic regional strategy to help recharge the rural American economy, will be outlined for public comment. Topics to be discussed include potential sources of feedstock, the current local infrastructure to support biofuels, and the estimated land use needed in California for biofuels.

During the session, comments will also be sought on how state and/or federal agencies can more effectively partner with the private sector and will also address developing nationwide infrastructure for alternative fuels.

The U.S. federal government may be dragging its heels on its support for biofuels, but many states, including Ohio, are stepping up to plate. The Dayton Business Journal has reported that Ohio has designated an $8 million fund to boost biofuel production by subsidizing ethanol and biodiesel refining equipment purchases. The program is designed to give ethanol and biodiesel equipment manufactures based in Ohio a market boost.

The money is actually coming from the state’s $96 million energy project allocation as part of the American Recovery and Reinvestment Act. The Ohio Department of Development’s Energy Resources Division is currently accepting applications for funding under the Advancing Biofuels Beyond the Basics program. Awards will be given for projects not to exceed $1 million for any one project, and are designated for the purchase of equipment that will increase second generation ethanol refining capacity or biodiesel production facilities.

Requirements of the program include a stipulation that the company receiving the award must pay at least 25 percent of the total project cost, the project must be complete within one year of the award and it must demonstrate a direct economic benefit to Ohio.

A bidders’ conference is scheduled in Columbus on Oct. 6. Registration is required by e-mail at Recovery.Stickel@em.ohio.gov.

The Center for Advanced BioEnergy Research (CABER), part of the College of Agricultural, Consumer and Environmental Sciences at the University of Illinois, is hosting a symposium on Near-term Opportunities for Biorefineries on October 11-12, 2010. Among the topics discussed will be the impact of technology improvements and utilization of value-added co-products of corn ethanol production. Attendees will also learn about the political and economic considerations that affect the development of improved technology as well as the proposed Renewable Fuels Standards (RFS2) requirements and implications.

“Modest tweaks in technology can reap substantial economic and environmental benefits for current corn ethanol plants. This symposium will address near term technologies and utilization of co-products that can add another revenue stream,” said Dr. Hans Blaschek, Director of CABER. “We’ll also discuss biochemicals, including butanol, which is considered a next generation biofuel as well as feedstock chemical that can add to the portfolio of products being produced in a biorefinery.”

University of Illinois researchers, along with staff from the USDA, Argonne National Laboratory, and biofuels industry leaders will share their views of the current and future status of corn ethanol.

Topics for the symposium include:

• • Potentials for a biorefinery and a portfolio of products
• • Co-product utilization and conversion
• • Overcoming impediments to scale-up and commercialization
• • Technologies to make ethanol and butanol an advanced fuel
• • Economic advantages to diversification of products produced in a traditional corn ethanol plant

The early-bird registration fee is $249; after October 1 the registration fee is $299. Click here to learn more about the symposium and to register.

Isobutanol company Gevo, Inc. has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) relating to its proposed initial public offering (IPO). The company has not disclosed how many shares it plans to offer nor when it will file for the IPO, but early estimates put the total worth of the IPO as high as $150 million.

During the past few years, Gevo has purchased several corn-based ethanol plants and converted them to produce isobutanol which can be used as a specialty chemical or blended with fuel. The company plans to use the money raised from the IPO to purchase more biorefineries.

UBS Investment Bank and Goldman, Sachs & Co. will be acting as joint bookrunning managers, with Piper Jaffray acting as a co-manager for the offering. The company plans to list its shares on Nasdaq Global Market under the trading symbol “GEVO.”

Cobalt Technologies has signed an agreement with engineering firm Fluor Corporation to help design production plants to commercialize biobutanol.

Under the agreement, Fluor will provide engineering consulting services and a broad range of EPCM services for Cobalt’s demonstration and commercial-scale butanol production plants.

“We are very pleased to have Fluor as our strategic partner to help us design the most efficient, lowest cost system for producing our biobutanol,” said Rick Wilson, Ph.D., chief executive officer of Cobalt Technologies. “Fluor’s experience in designing and executing large projects, particularly refining projects, is unmatched in the world. We originally asked Fluor to provide an impartial analysis of our biobutanol production technology. Now, to have them sign a strategic agreement with us, truly validates our vision.”

Cobalt’s technology converts non-food feedstock, such as forest waste and mill residues, into biobutanol. Earlier this year, the company demonstrated the conversion of beetle-killed lodgepole pine into a low-carbon, sustainable biofuel and chemical, which is currently being tested in engines by Colorado State University’s Engines and Energy Conversion Laboratory. In January, Cobalt got the endorsement of California Governor Arnold Schwarzenegger at the launching of a pilot plant in that state. Schwarzenegger said biobutanol will meet California’s Low Carbon Fuels Standard (LCFS), as the company says its technology reduces lifecycle greenhouse gas emissions by up to 90% compared to gasoline.

Denver-based chemical and biofuels company Gevo is buying a Minnesota ethanol plant to produce isobutanol.

The company will acquire Agri-Energy’s ethanol production facility in Luverne, Minnesota and will begin mechanical retrofitting of the plant upon closing. Isobutanol production is expected to begin by the first quarter of 2012, but in the meantime, the facility will continue to produce ethanol. Company officials say plant will provide 18 million gallons per year of production capacity for chemicals and fuels.

“This transaction is another important step in achieving our goal of bringing commercial volumes of renewable isobutanol to the market as soon as possible,” said Dr. Patrick Gruber, CEO of Gevo. “The Luverne plant is a very well run facility with a strong operating team. It is a great place to begin our commercialization effort. We expect the facility will be the first among many and want it to be a model project for the future.”

“Since its founding in 1998, Agri-Energy has been dedicated to advancing the technology and best practices of the ethanol industry,” said Agri-Energy founding member and Co-op Coordinator David Kolsrud. “We see biobutanol as the next logical step in the industry’s development. We believe isobutanol can be sold into many markets and has product attributes that make it a compelling product for current ethanol producers.”

Read more here.

Presenting his new “cornucopia biorefinery” model to produce food, fertilizer and fuel from corn, SynGest, Inc. CEO Jack Oswald led attendees in chants of “Till Baby Till” as he delivered the keynote address at the 2010 International Biomass Conference in Minneapolis last week.

“Our integrated biorefinery model will put an end to the ‘food versus fuel’ debate,” Oswald said. “Now you can have your fuel and eat it too.”

According to Oswald, the Cornucopia process can yield an impressive slate of end products, including anhydrous ammonia, food grade corn oil, high protein food for human consumption, stillage for animal feed, butanol for liquid transportation fuel, and biochar for conditioning and maintaining soil.

“We intend to use each and every component in an ear of corn,” said Oswald. “The cob and bran are gasified into hydrogen for ammonia synthesis, while leaving biochar as residue. The germ is separated into food grade oil and protein, and the endosperm/starch is converted into butanol and animal feed.” Oswald notes that his integrated biorefinery concept “represents a true intersection between agriculture and energy interests, a formula that sets SynGest apart from others who are just making fuel, power or singular bioproducts.”

The concept has already produced one new product – “Till, Baby, Till” t-shirts – available for $19.99 in short sleeve or $24.99 in long sleeve models.

A nasty little beetle is destroying millions of acres of lodgepole pine trees across the western United States and so far, no one has been able to stop it.

But, in the tradition of making lemonade from lemons, the biofuels industry has been working on ways to use the dead trees for energy – and one company is now claiming success.

Cobalt Technologies of California is claiming to be the first to produce biobutanol from beetle-killed lodgepole pine feedstock. To evaluate the fuel’s viability for commercial vehicles, the company has signed a fuel testing partnership with Colorado State University.

“With this breakthrough, we’ve been able to turn a problem into an opportunity,” said Rick Wilson, Ph.D., chief executive officer of Cobalt Technologies. “Harvesting beetle-killed trees could produce low-carbon fuels and chemicals, establish a foundation for a sustainable biorefinery industry and create jobs, particularly in rural areas. If we use only half of the 2.3 million acres currently affected in Colorado alone, we could produce over two billion gallons of biobutanol — enough to blend into all the gasoline used in Colorado for six years.”

“Clearly, this is a significant achievement and a major step forward toward the production of cellulosic biofuels. Converting beetle-killed pine for biofuels is an extremely difficult process,” said Ken Reardon, professor of Chemical and Biological Engineering at Colorado State University. “If Cobalt can convert beetle-killed wood, it’s likely that the company can make biofuel from almost any cellulosic feedstock.”

Cobalt Technologies has partnered with Colorado State University to perform engine testing with a gasoline-butanol blend made with the biobutanol from beetle-killed wood. The fuel testing will be performed at Colorado State University’s renowned Engines and Energy Conversion Laboratory under the auspices of the University’s Sustainable Bioenergy Development Center.

A new biofuel mix will be making its debut in the American Le Mans Series this weekend – isobutanol and ethanol.

The “Global Leader of Green Racing” announced earlier this week that Dyson Racing, with cooperation from partners BP and Mazda, will campaign its Mazda-powered Lola B09/86 LMP2 coupe on isobutanol for the full 2010 season. Chris Dyson, Guy Smith and Andy Meyrick will drive Dyson Racing’s Lola-Mazda coupe with isobutanol power at the season-opening 58th Mobil 1 Twelve Hours of Sebring presented by Fresh from Florida on Saturday, March 20.

The isobutanol fuel component is of particular interest to BP and its development partner DuPont who, through their Butamax™ Advanced Biofuels joint venture, are developing commercial facilities to manufacture isobutanol for mainstream use.

Biobutanol got a boost from California Governor Arnold Schwarzenegger Tuesday at the launching of a Cobalt Technologies pilot plant in his state,

Schwarzenegger said biobutanol will meet California’s Low Carbon Fuels Standard (LCFS), which was approved this week by the state’s Office of Administrative Law. “It is great companies like Cobalt that will help California meet our greenhouse gas reduction targets under AB 32 and our Low Carbon Fuel Standard,” said Governor Schwarzenegger, who used the occasion to promote his proposed sales tax exemption for clean tech companies. “Cobalt shows us that what is good for the environment can also be good for the economy. In fact, within the next few years, Cobalt has plans to build an even larger plant that will create 1,300 permanent jobs. I want that plant and those jobs right here in California.”

Biobutanol can be used as a standalone fuel or blended with gasoline, diesel or ethanol. It can also be converted into jet fuel or plastics, or sold as is for use in paints and coatings. It is similar to ethanol and can be produced from non-food feedstock, such as forest waste and mill residue. However, while the new state LCFS would virtually eliminate corn ethanol, the company says a 12 percent blend of Cobalt biobutanol with gasoline complies with the standard. The drawback is that biobutanol is not yet commercially available. The ethanol industry has filed suit in federal district court in Fresno, California, challenging the LCFS on the grounds it violates both the Supremacy and Commerce Clause of the U.S. Constitution.

A major oil producer is looking to get into the biofuels business.

This story from Reuters says BP could start ethanol and biobutanol operations next year:

BP could launch commercial production of grass-based ethanol in the United States in 2010 with partner Verenium, which already has a demonstration cellulosic ethanol facility, Philip New, Chief Executive of BP Biofuels, said.

The oil company is building a wheat-based ethanol plant near Hull in eastern England in partnership with British Sugar and chemicals group Dupont that is due to come online next year, and plans subsequently to retrofit the facility to convert it to biobutanol output.

The article goes on to say that the plant in England is part of a $200 million BP-Dupont joint research venture.

A Colorado-based company is working to develop a fleet of biorefineries based on retrofitting existing ethanol plants to produce biobutanol.

Last week, Gevo, Inc. announced the start up of the first biobutanol demonstration plant designed from retrofitting an existing demonstration scale ethanol plant in St. Joseph, Missouri. The company is using the plant to demonstrate the viability of its technology for retrofitting existing ethanol plants to make biobutanol, which can be blended directly into gasoline and be used to make renewable hydrocarbons (“green gasoline”), diesel and jet fuel, chemical intermediates and biobased plastics.

This is the first time that an existing ethanol operation has been successfully retrofitted to produce biobutanol instead of ethanol. ICM’s pilot plant at St. Joseph has been designed and constructed as a reduced scale replica of a dry-milled ethanol production process. Additionally, Gevo’s biobutanol has higher energy content than ethanol and a lower Reid Vapor Pressure (RVP) – which means lower volatility and evaporative emissions. Importantly, standard automobile and small engines can run on biobutanol blended into gasoline at any ratio.

The retrofit of the pilot plant was completed in less than three months and the company says it also represents the first step along the route to produce cellulosic biobutanol which will be possible once biomass conversion technology becomes commercially available.

Guardian News & Media recently announced their Global Cleantech 100 presented by the Guardian. Although this was the first year the list was created, more than 3,500 nominations were submitted. On this year’s list were 55 American based companies including Mountain View, California based Cobalt Biofuels. The list includes companies that are on the forefront of cleantech innovation. Cobalt Biofuels was recognized on the basis of its innovative technology for the production of biobutanol from non-food lignocellulosic material.

“It is a high honor to be included in the Global Cleantech 100 as it recognizes the rapid progress we have made toward our goal of commercializing biobutanol and the tremendous promise that biobutanol offers as a next generation biofuel,” said Rick Wilson, Ph.D., Chief Executive Officer of Cobalt Biofuels.

The 2009 list represents the collective opinion of hundreds of experts from cleantech innovation and venture capital companies in EMEA, North America, India and China, combined with the specific input of an expert panel of 35.

“The first ever Global Cleantech 100 shines a spotlight on which companies and which technology areas the global innovation community is most excited about from a commercial standpoint,” said Richard Youngman, managing partner at Cleantech Group.