Domestic Fuel

Agriculture Secretary Tom Vilsack today announced $44.6 million in payments for 156 advanced biofuel producers across the country to support the production and expansion of advanced biofuels.

“This funding will help local producers increase the production and availability of renewable energy and thus help our nation begin to reduce its reliance on foreign oil,” Vilsack said. “Just as importantly, USDA’s support will help to further develop the nation’s growing biofuels industry and generate green jobs and economic growth.”

The funding is being provided through USDA’s Bioenergy Program for Advanced Biofuels program, the same program that provided $80 million in payments last month. Under this program, payments are made to eligible producers based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch – including cellulose; crop residue; animal, food and yard waste material; biogas (landfill and sewage waste treatment gas); vegetable oil, and animal fat.

Eighteen companies will receive over $1 million, four of them are over $2 million – including Renewable Energy Group of Iowa with $3.7 million; White Energy in Kansas at $3.1 million; Louis Dreyfus in Indiana with $2.4 million and Ag Processing of Nebraska at almost $2.1 million. The majority of the highest payments are for Biodiesel Trans Esterification, with a good percentage for advanced ethanol production, biofuel from waste and anaerobic digesters.

See the full list of recipients here.

There’s a chill in the air and winter weather is just around the corner. After last winter’s extremely cold temperatures, it’s especially important for diesel fuel users to make sure they are ready.

That means winter treatment for diesel fuel, according to GROWMARK marketing manager for refined and renewable fuels Mark Dehner. “Diesel fuel is impacted by cold temperatures. There are paraffins, or wax, in diesel fuel and as the temperature decreases these paraffins start to precipitate out of the fuel and may get large enough so they’ll plug filters or fuel lines,” Dehner says.

As a diesel fuel supplier, GROWMARK takes pains to make sure that doesn’t happen for their customers by blending number one diesel fuel into number two to dilute the wax, or they will use chemical treatments. “Chemistry usually involves wax modifiers that will not allow them to conglomerate,” he explains.

GROWMARK also sells biodiesel blends in the winter. “A lot of our customers use biodiesel throughout the wintertime, but we have to manage it differently,” Dehner says. “We may use a combination of cold flow chemistry along with some blending of number one.”

Dehner says it all comes down to fuel quality maintenance.

Listen to my interview with Mark Dehner here: Mark Dehner with GROWMARK

Outlining his priorities for farm policy this week, Agriculture Secretary Tom Vilsack stressed the need for continued support of renewable fuels in the next farm bill.

“Rural America has done a great job of helping to develop the domestically-produced renewable energy and fuel. That job must continue because when we create those opportunities, we create jobs, we reduce our reliance on foreign energy sources, and we enhance our national security,” Vilsack said during a speech at a John Deere facility in Des Moines on Monday. “USDA has to have the tools to be able to continue to help this biobased and biofuel and renewable energy economy, and we need to make sure that it’s vibrant in all regions of the country. Continuing our investment in renewable energy, biofuel, and biobased products will improve the bottom line for farmers as we find creative ways to use that which they grow.”

The secretary noted that expansion in the biofuel industry has already had an impact. “We’ve gone from importing 60 percent of our oil to 52 percent,” he said. “As a result of our biofuel industries, consumers across America are paying about $0.90, on average, less for gas than they would otherwise pay. So it’s a great opportunity for consumer choice, it’s a job creator, and it improves income opportunities for farmers.”

Specifically, Vilsack wants to see at least the BCAP (Biomass Crop Assistance Program) and the REAP (Rural Energy For America Program) programs continued.

Members of the Open Fuel Standard Coalition joined with Representatives Eliot Engel (D-NY) and John Shimkus (R-IL) to call for consumer choice at the pump during an Energy Security Roundtable and media event in Washington DC on Tuesday

The two congressmen, pictured here with former National Security Advisor Robert McFarlane, outlined their Open Fuel Standard Act (HR 1687) which would set a deadline of 2017 for automakers to stop making cars that run on only gasoline. After than point, all American made cars must be either flex fuel (capable of burning gasoline, ethanol or methanol or any combination of these), or powered by natural gas, hydrogen, biodiesel, plug-in electric, or fuel cell.

“By employing the Open Fuel Standard, we can create competition for petroleum on the open market with other types of fuel. We don’t have to wait for the perfect technology,” said Rep. Engel (center).

“Consumers should have a choice when they pull up to a refueling station,” Rep. Shimkus (right) added. “At a minimal cost, vehicles could be able to accept multiple fuels with consumers choosing based on price or even feedstock for the fuel.”At a minimal cost, vehicles could be able to accept multiple fuels with consumers choosing based on price or even feedstock for the fuel.”

Also at the event were NASCAR driver Kenny Wallace and representatives from the Renewable Fuels Association, the Methanol Institute and ACT! For America.

The Environmental Protection Agency (EPA) reports that a record 119 million gallons of “Biomass-based Diesel” were produced in September, up eight percent over the previous high of 110 million gallons in August and marking the sixth consecutive monthly record. Of that total, about 95 percent was biodiesel production, which now totals 686 million gallons for the year so far as of September.

The monthly Moderated Transaction System (EMTS) data from EPA is used to track requirements under the expanded Renewable Fuel Standard (RFS2) program for use of renewable fuels and Renewable Identification Number (RIN) transactions.

The National Biodiesel Board is pleased to see the continued growth in biodiesel this year. “Biodiesel is America’s first Advanced Biofuel,” says NBB. “It is produced in nearly every state in the country and will support more than 31,000 U.S. jobs in 2011 while replacing nearly one billion gallons of petroleum diesel.”

A new Bioheat® advertising campaign is underway in New York City targeting oilheat customers who want a better, cleaner fuel.

The message is that consumers who use oilheat to heat their homes have the power to change – without changing a thing – by choosing Bioheat®, “a home heating fuel made with biodiesel, a renewable, cleaner-burning fuel that supports American jobs.”

Starting Oct. 24, New York City buses and the subway system will be covered with Bioheat ads. Radio commercials are already airing on six highly rated CBS stations. “Choose the cleaner, renewable home heat without changing equipment. Bioheat. It’s the evolution of oilheat,” says one version of the radio commercial.

Bioheat is made by combining oilheat with at least two percent biodiesel. It is cleaner burning, cost-competitive with oilheat, and does not require modifications to the oilheat system.

“Our public opinion research shows that oilheat customers crave the benefits of Bioheat, yet most aren’t aware that it is an option for their oilheat systems,” said Paul Nazzaro, petroleum liaison for the National Biodiesel Board. “This campaign will drive customers to ask their oilheat dealers for Bioheat, and raise their understanding of the product and its benefits.”

The ads direct consumers to the Bioheat website, bioheatonline.com, which has been revamped in conjunction with the campaign to be more user friendly to consumers and oilheat dealers alike. Facebook users can also “join the evolution” on the new Bioheat Facebook page.

“This campaign is a critical step in empowering consumers to use a truly renewable product, contribute to energy security, and support American jobs,” said John Maniscalco, CEO of the New York Oil Heating Association. An early proponent of Bioheat, Maniscalco was instrumental in passing an air quality bill that ensures Bioheat is used within the city for heating homes and buildings. Starting in October 2012, all heating oil sold within New York City will contain at least 2 percent biodiesel.

An annual scholarship for Minnesota high school seniors has been launched under a new name to honor the memory of a soybean farmer.

This year’s scholarships are given in memory of the late father of Mike Youngerberg, senior director of field services for the Minnesota Soybean Growers Association. Reuben Youngerberg owned a farm in Blue Earth County, where he held a number of board positions in local agriculture organizations.

The Reuben Youngerberg Memorial Biodiesel Scholarship is open to any Minnesota high school senior and offers a $1,600 1st place and $500 2nd place award to the winners of an essay contest about biodiesel, a cleaner-burning alternative fuel produced and used in Minnesota. Rules and an online entry form can be found at www.cleanairchoice.org. Deadline for entries is March 30, 2012.

The scholarship is administered by the American Lung Association in Minnesota, which recognizes biodiesel as a “clean air choice” fuel that reduces emissions, and sponsored by the Minnesota Soybean Research and Promotion Council, with additional support from the Minnesota Soybean Growers Association, National Biodiesel Board, MEG Corp, and Renewable Energy Group, Inc.

Joule Unlimited Technologies has received the 2011 Wall Street Journal Technology Innovation Award in the Energy category and was also named the Silver award winner across all of the competition’s 16 categories, from more than 600 entries around the globe.

“We are honored to be the Wall Street Journal’s choice for the most innovative energy company, and to be recognized even beyond our industry as one of the world’s top innovators overall,” said Bill Sims, President and CEO of Joule.

As stated in the Journal’s report by Kenny Tang, one of the independent judges and founder & CEO of Oxbridge Weather Capital, “In bypassing the limitations of expensive processes in conventional biofuel production, Joule’s technology has the exciting potential to significantly transform the economics of the biofuel industry. If translated into wider use, it is a potential game changer—it could become a cost-effective replacement to petroleum on a much wider scale than previously possible, especially with its non-reliance on biomass.”

Using sunlight and waste CO2 from industrial emitters or pipelines, Joule anticipates commercial production of up to 15,000 gallons of diesel and 25,000 gallons of ethanol per acre annually, at stable costs as low as $20/bble and $0.60/gallon respectively, including subsidies. The company has been conducting pilot operations and expects to begin construction of its first demonstration-scale plant this quarter.

U.S. Senators Amy Klobuchar (D-MN) and Al Franken (D-MN) will address the 2011 Algae Biomass Summit October 25-27 in Minneapolis, according to the Algal Biomass Organization (ABO).

Senator Franken will help kickoff the conference on October 25, while Senator Klobuchar will address the conference via a video lunchtime keynote on October 26, focusing on home grown energy and job creation.

“That Senators Klobuchar and Franken both chose to participate in the conference reflects the importance of algae-based fuels and co-products not only for the state of Minnesota, but also the rest of the country,” said Mary Rosenthal, Executive Director of ABO.

Other speakers at the conference include Harrison Dillon, President of Solazyme, Judy Canales, USDA Administrator for Rural Business and Cooperative Programs; and Cynthia “C.J.” Warner, CEO of Sapphire Energy.

The 5th annual Algae Biomass Summit will feature presentations and poster sessions from more than 200 experts from around the world, with exhibits by more than 60 companies and organizations. The event is expected to attract more than 800 participants, with 20 countries already represented among the registrants to date.

Corn stocks and use for ethanol seem to get all the attention when the USDA World Agricultural Supply and Demand Estimates are released each month, but soybean oil use for biodiesel attracting some notice lately.

World Agricultural Outlook Board Chairman Gerry Bange says soybean oil use for biodiesel is up 44% over last year at 3.6 billion pounds. “The EPA has indicated its intention to enforce the billion gallon standard and what we’re seeing is a substantial increase in the amount of soybean oil being used to produce methyl ester, which is another way of saying biodiesel,” he told USDA Radio.

This is resulting in a tightening of ending stocks for soybean oil and higher prices. “What it’s leading to is a continuation of a fairly strong price at 55 cents per pound, compared to 53.2 cents per pound in 2010-11,” he said.

A strong supporter of ethanol was honored this week for his efforts to fight hunger and poverty in Brazil.

Former Brazilian President Lula da Silva was recognized with the 2011 World Food Prize for his Zero Hunger strategy, which resulted in Brazil reducing by half its proportion of hungry people (with 93 percent of children and 82 percent of adults eating three meals a day) and also reduced the percentage of Brazilians living in extreme poverty, from 12 percent in 2003 down to 4.8 percent in 2009.

At the same time he was fighting hunger, President Lula was supporting a strong biofuels policy in Brazil, making the case before the United Nations in 2008 that it was possible for a country to produce ethanol and biodiesel to “reduce dependency on fossil fuels and at the same time create jobs, regenerate degraded land and expand food production.”

Brazil is currently the second largest producer of ethanol in the world, behind the United States, and uses sugarcane as a feedstock.

The National Biodiesel Board (NBB) is partnering with Hino Trucks to showcase a new line of biodiesel-capable trucks at the Hybrid, Electric, and High Efficiency Truck Users Forum (HTUF) Conference in Baltimore this week.

The 2012 Hino 195h diesel-electric hybrid cab over truck, on display at the HTUF Expo, will show off its capabilities running on a 20 percent biodiesel blend (B20) and hybrid electric power during the HTUF Ride-and-Drive event today, along with more than 30 high efficiency trucks.

Hino Trucks, a Toyota Group Company, announced its full approval for use of B20 biodiesel blends in its new hybrid-electric truck as well as its complete product line of class 4 and 5 cab over, and class 6 and 7 conventional trucks in July 2011. Hino Trucks is the world’s third largest manufacturer of light and medium duty trucks, and now the fastest growing truck manufacturer in the U.S. Hino’s B20 approval statement joins those of competitors Isuzu Commercial Trucks, Ford Motor Company, International / Navistar, Cummins engines and others. B20 biodiesel blends are now approved by more than 95 percent of the medium duty truck market in the U.S., and by more than 60 percent of the U.S. diesel vehicle and equipment manufacturers as a whole.

“We applaud Hino Trucks for its foresight and proactivity in approving the use of B20 biodiesel blends in its new diesel and diesel-electric hybrid trucks,” said NBB CEO Joe Jobe. “The move toward B20 is a trend that is expected to continue as OEMs like Hino realize the value of biodiesel as a cost-effective, high quality fuel solution to help increase energy security and reduce emissions without sacrificing fuel economy or vehicle performance.”

According to NBB, 95 percent of the U.S. medium duty truck market is now approved for the use of B20 biodiesel.

Read more from NBB.

In 2010, process safety management (PSM) was the most common cited hazard at ethanol plants by OSHA (Occupational Safety and Health Administration). The data was published by Albert Patin with South Dakota State University. This year PSM citations are appearing to be on the same course as OSHA has been arriving unexpectedly at ethanol plants across the country assessing fines. More visits are expected. This is why Improving Process Safety Management is the feature of Part 4 of the Biorefinery Safety Series.

So what exactly is process safety management in the context of a biorefinery? It provides guidance on the control and use of highly hazardous chemicals (See Part 1: How to Properly Handle Chemicals in a Biorefinery), according to Nate Vander Griend with ERI, a company that has its roots with ICM dating back to 2003 and in 2006 became a stand-alone company. Vander Griend said that risk management planning is generally part of an environmental program, which ERI now provides.

“On the safety side, managing your risk is quite a bit different,” said Vander Griend. “You must get a safety program in place that not only meets OSHA requirements but exceeds them, and encompasses all the ethanol industry best practices.” He continued by explaining that there have also been property safety issues that have been a recent concern as it relates to process safety management. This encompasses how the plant is built, operated and the type of testing that happens to prevent catastrophic events such as the release of hazardous materials.

Listen to my interview with Nate Vander Griend here: Ethanol Safety Series Part IV: PSM Most Cited Ethanol Plant Hazard
Read the rest of this post…

The National Biodiesel Board is offering students and others interested in the future of advanced biofuels the opportunity to take their renewable fuels education up a notch with the Next Generation Scientists for Biodiesel (NGSB) Fall Webinar on Oct. 18.

The webinar will feature the very latest on biodiesel research from two university students who will present their biodiesel research, and USDA’s Dr. Michael Haas, who will provide an overview of his work with low value feedstocks and in new process development.

Meredith Dorneker, a graduate student in geography at the University of Missouri – Columbia will present her research entitled “Federal Laws, Regulations, and Programs: application to biofuel production and the Roundtable on Sustainable Biofuels (RSB) Principles.” Chemical engineering undergrad at the University of Rhode Island Daniel Mallin will present his study on “The Glycerol Prewash and its Effectiveness for Removing Moisture and Free Fatty Acids from Waste Vegetable Oil for Biodiesel Production.”

The webinar will be held on October 18 at 4:00 pm central time and registration is free.

While traditional and next generation ethanol came out negative in the National Research Council report out this week, the biodiesel industry was pleased with the findings.

Anne Steckel, vice president of federal affairs for the National Biodiesel Board, said the report reaffirms that biodiesel is an advanced biofuel that can meet the biomass-based diesel targets under the EPA’s Renewable Fuel Standard (RFS2). “We were happy that the authors recognized a wide variety of environmental and economic benefits from biodiesel,” said Steckel. “For example, they noted that soy biodiesel – about half of U.S. biodiesel production – has a positive impact on livestock feed prices, helping hold down costs. This is because only the oil – which accounts for about 18 percent of a soybean – can be used for fuel, and the highly nutritious soybean meal is used for feed. The report also reaffirmed that biodiesel significantly reduces particulate matter and other harmful tailpipe emissions when compared to petroleum diesel.”

Steckel added that the report noted that there are significant uncertainties surrounding the hypothetical modeling used to calculate indirect land-use change for biofuels. “We believe the evidence demonstrates that biodiesel compares very favorably when compared to petroleum, as the EPA found in its most recent analysis, which shows that biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent, depending on the feedstock used,” she said.