Domestic Fuel

Some others have started to notice something I told you about back in January. It seems that while he campaigned on the word “biodiesel,” President Barack Obama is now talking “biofuels” … a more ambiguous term that is leaving some biodiesel producers scratching their heads wondering whether the president backs them.

This piece from Biodiesel Magazine points out that Stimulus Act monies seem to be going to too many unproven technologies, such as fuel cells, cellulosic ethanol and electric motors, instead of proven, reliable biodiesel:

The Obama administration coming out with billions of dollars from the American Recovery and Reinvestment Act to increase “clean energy manufacturing” could seem almost like a taunt to biodiesel producers.Obama announced “awardees” of the $2.3 billion clean energy manufacturing tax credits as existing biodiesel producers languish over the lapse of their specific federal blender tax credit. “Projects are assessed based on the following criteria: commercial viability, domestic job creation, technological innovation, speed to project completion, and potential for reducing air pollution and greenhouse gas emissions,” the White House stated on Jan. 8.

“I don’t think this Obama administration is any different than any other—Republican or Democrat—in that often the right hand doesn’t know what the left is doing,” said Joe Gershen of Los Angeles’ Tellurian Biodiesel. “So it does hurt, but I will say that I don’t think they’re doing it on purpose.”

I think the fact that the biodiesel tax incentive was allowed to expire and the White House not pushing for renewal speaks volumes … actions always speak louder than words.

Things are getting a bit tough in the fight to get a biodiesel mandate implemented in Iowa.

This post from the Des Moines Register says a letter that Decker Trucking of Fort Dodge sent to the legislature outlining the company’s two million mile biodiesel study that hurts biodiesel’s case is being refuted by the Iowa Biodiesel Board.

The letter says that biodiesel is not a cost-effective solution at this time … a charge the board obviously disagrees with:

“We have nothing but respect for Iowa’s truckers, but it seems fear and politics are overtaking facts,” said Randy Olson, executive director of the Biodiesel Board. “The study found few significant differences between 20 percent biodiesel and ultra low sulfur diesel in performance and operation.”

Olson added “truckers are known to be patriotic and dislike dependence on foreign oil, which makes it disappointing that they oppose this legislation.”

Last year, a biodiesel mandate cleared the State Senate but never made it to the House.

A researcher at Iowa State University is genetically modifying algae to make it a better feedstock for biodiesel.

This article from Biodiesel Magazine says Martin Spalding, ISU professor of genetics, development and cell biology,has received a $4.37 million grant U.S. Department of Energy to stack traits in algae, specifically, one type of alga, Chlamydomonas, whose genome has already been mapped out:

Spalding hopes stacking Chlamydomonas’ desirable traits will lead to more oil production and thermal resistance, ultimately developing a desirable feedstock for biodiesel and other renewable fuels production.

Since the Chlamydomonas genome is already mapped, however, work can be done to tailor the genetic makeup of this alga to meet the growing biofuel industry’s needs.

It’s a three-year study that Spalding will conduct with some fellow ISU professors and Purdue University researchers as well.

As we’ve reported before, Biodiesel Analytical Solutions is teaming up with Mcgyan Biodiesel. I learned more about this at the recent National Biodiesel Conference when I spoke with David Wendorf, Mcgyan Director of Marketing. He’s seen here in their booth.

David says Mcgyan was formed about 6 months ago as the company to license their new biodiesel technology. It’s a process that uses a fixed bed catalyst using metal oxide to produce biodiesel. They can use all types of feedstock. That makes them flexible and able to choose the least expensive feedstock available. Feedstock is the most expensive component of the production process. He says they started out a couple years ago after discovering the process. Since then they’ve been scaling up to what is now a large size production facility. He says the plant is performing beyond their expectations.

You can listen to my interview with David here:

Podcast: Play in new window | Download (2.1MB)

Some electricity customers in Hawaii will have to pay a little more for power from a biodiesel-powered generating plant now, but utility officials believe it will save those same customers in the long run.

This article from the Honolulu Star Bulletin says the state’s Public Utilities Commission approved a 1 percent increase to help pay for a new $142.3 million, 110-megawatt Hawaiian Electric Co. plant that runs on biodiesel with the hope that it will save money and fossil fuels later:

“We know that the price of fossil fuels only go in one direction, and that’s up,” said Darren Pai, HECO spokesman. “There’s also the real potential that there may be some type of carbon taxes or additional costs incurred for using fossil fuels as energy.”

The biodiesel to fuel the plant is on hold right now as HECO awaits the commission’s approval of its contract with Iowa-based Renewable Energy Group. HECO originally had wanted to get its biodiesel from Imperium Services of Seattle, but the commission denied HECO’s first biodiesel contract in August because of too many risks and costs that would have been passed on to consumers.

SG Biofuels, a company that specializes in developing jatropha for use in alternative fuels, such as biodiesel, has announced a new variety of the tropical plant that has double the oil output of normal jatropha and is best for the tropics where it is grown.

This company press release says the new variety is named JMax 100, a proprietary cultivar of Jatropha optimized for growing conditions in Guatemala with yields 100 percent greater than existing varieties:

JMax 100 is the first elite cultivar developed through the company’s JMax Jatropha Optimization Platform. The platform provides growers and plantation developers with access to the highest yielding and most profitable Jatropha in the world, the sequenced genome and advanced biotech and synthetic biology tools to develop cultivars specifically optimized for their unique growing conditions.

“The yields and profitability of JMax100 and the JMax platform far exceed what is currently available through existing varieties of Jatropha,” said Kirk Haney, President and Chief Executive Officer of SG Biofuels. “In Guatemala, we have utilized the world’s largest library of Jatropha genetic material and our advanced genetic program to enable exponential increases in productivity and profitability, and establish Jatropha as a large-scale sustainable energy crop.”

The press release goes on to say that the JMax 100 variety triples the profitability of Jatropha to greater than $400 per acre, cranking out more than 350 gallons per acre at $1.39 per gallon.

The latest jobs bill seems to be forgetting the 23,000 workers in the biodiesel industry who are at risk since the provision renewing the federal $1-a-gallon tax incentive was removed. That’s the opinion of Sen. Charles Grassley, a Republican from Iowa who saw his version of the jobs bill with the biodiesel provisions get scrapped for a pared down version from Senate Majority Leader Harry Reid (D-Nevada).

Now, it looks like Reid’s bill will come to a vote on Wednesday after passing an important procedural vote earlier this week. But before the cloture vote, Grassley took to the Senate floor to express his dismay at Reid’s jobs bill without the biodiesel-jobs-saving provisions (this excerpt from IowaPolitics.com):

Either the Democratic leaders are playing partisan politics with tax extenders, or they don’t understand the worth of the provisions to the economy, including job retention and creation. The biodiesel industry alone says 23,000 jobs are at risk due to the biodiesel tax credit being allowed to expire. Those workers are not fat cats.

And in case anyone thinks biodiesel is something only Iowans worry about, these green jobs are in forty-four of the fifty states.

The biodiesel tax incentive was allowed to expire at the end of 2009 while the Senate wrestled over health care reform.

When it comes to approval of biodiesel in farm machinery, New Holland is outstanding in the field.

In both North America and Europe, New Holland has been a leader in recognizing the importance of biodiesel as a fuel source for agricultural equipment. The company was first to approve the use of biodiesel blends back in 2006 and has since moved to allow biodiesel in all equipment with New Holland manufactured diesel engines, including electronic injection engines with common rail technology.

At the recent National Farm Machinery Show in Louisville, most of the New Holland equipment on display proudly displayed soybean biodiesel signage, and company representatives wore buttons proclaiming their support for the domestically-produced fuel. “New Holland has a strong commitment to not only be a part of biodiesel, but also to be a leader in the industry as far as future fuel usage is concerned,” New Holland regional service manager Phil Cobb said at the farm show. He says it was natural for their company to take the lead. “Mainly because our customers are in the soybean areas and grow soybeans,” said Cobb. “Not only does it support farming, we also use the fuel. It’s important for the ag industry to be on the leading edge.”

Cobb says all New Holland equipment is approved for a minimum of five percent biodiesel, with the large combines approved for 100 percent and many of the tractors approved for up to 20 percent.

Listen to my interview with Phil Cobb from the National Farm Machinery Show here:

Podcast: Play in new window | Download (1.2MB)

The National Algae Association’s Mid-South Chapter will be holding a workshop on how to best use wastewater to grow algae, especially algae for use in biodiesel.

The workshop, entitled “Algae: Mining Wastewater for Nutrients, Fuel, and Fertilizer,” will be held in Huntsville, Alabama on Friday, March 26, 2010:

With US fresh water supplies slowly dwindling and algae culture quickly becoming the centerpiece of bioenergy/bioremediation research , we must carefully examine our water and nutrient sources for an efficient, sustainable algal industry. This workshop explores how to minimize algae’s fresh water and nutrient footprints by recycling anthropogenic wastewater streams including agricultural, municipal, and industrial, while at the same time producing a host of valuable algal end products. In addition, we will learn of algae’s tremendous potential as a cost-effective bioremediation tool for wastewater streams, effecting a more stable and healthy ecosystem.

The group is also calling for white papers to include in the workshop looking at wastewater applications for both open pond and closed loop algae systems, technologies and support equipment. But you’ll need to hurry, because papers must be submitted by March 1st.

For more information on the workshop and white paper submission, contact Tamra Fakhoorian at TamraF.NAA@wk.net.

The name of the game in the biodiesel biz is getting the most out of your feedstocks. Some researchers at the University of California-Davis have found a way to squeeze another 24 percent out of oilseeds such as safflower.

This press release from the school says the new process converts both plant oils and carbohydrates into biodiesel in a single process, improving the performance of the biodiesel, especially in cold weather:

Conventional biodiesel production extracts plant oils and then converts them into fatty acid esters that can be used to power engines, said Mark Mascal, professor of chemistry at UC Davis and co-author of the paper with postdoctoral researcher Edward Nikitin. That leaves behind the carbohydrate portion of the plant — the sugars, starches, and cellulose that make up stems, leaves, seed husks and other structures.

The new process converts those carbohydrates into chemicals called levulinic acid esters — at the same time and in the same vessel that the oils are converted to fatty acid esters — resulting in a fuel cocktail that performs better at low temperatures than conventional biodiesel.

The article goes on to say the process might cost a bit more, but improved fuel yields and performance would make up the difference.