Category Archives: biofuels

Study: EPA Lacks Transparency in Feedstock Approvals

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epa-logoA study from a pair of University of Illinois researchers says the Environmental Protection Agency (EPA) lacks “transparency and clarity” when it comes to approving new feedstocks for biofuels as new pathway determinations. In farmdocdaily.com, James McCubbins and Bryan Endres say that if it’s not biodiesel or corn ethanol, it seems to take a lot longer to get the agency’s approval… twice as long in some cases… and that affects the biofuel producer’s ability to generate Renewable Identification Numbers (RINs):

Under the RFS2 pathways process, EPA assess biofuels based upon an energy balance equation that considers a biofuel’s feedstock, process, and type of fuel produced. EPA requires that if a particular fuel type, process, or feedstock varies significantly from any of the already modeled pathways found in the regulations, then companies seeking to develop biofuel through non-modeled pathways must petition EPA to determine the energy balance of that biofuel production process. Before conducting an assessment of the new pathway, EPA also will consider how close the new pathway is to actual production. Based upon priority, EPA will then determine the energy balance of the new fuel, feedstock or process, and assign it an applicable D-code that categorizes the biofuel as renewable, advanced, cellulosic or biodiesel. The D-code assignment allows producers of the biofuel, using approved pathways, to generate Renewable Identification Numbers (RINs) to a batch of biofuel, for the purpose of tracking its production, use, and trading.

The length of time between filing of the petition and final determination suggests that there may be a lack of transparency and clarity of the data EPA needs to conduct its assessment, especially for petitions involving substances or processes other than biodiesel or corn ethanol.

The study goes on to say that going forward, the EPA must develop clear guidance on the pathway approval process. If more hurdles are removed, the researchers contend that more advanced biofuels could meet RFS2 mandates.

Project Volt Gas Volt – A Breakthrough Program?

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During the EU Parliament in Brussels, a “breakthrough” green renewable energy program coined Project Volt Gas Volt was called for to make fossil fuel and first generation biofuel use obsolete. The call was made by Corinne Lepage, Member of the European Parliament (also the former French Minister of the Environment) and American Professor of Management, Robert I. Bell.

According to Lepage and Bell, renewable energy can now “keep the lights on” without disruption due to new technology and long term financing proposal for the project allowing surplus energy from wind and solar to be stored. Project Volt Gas Volt (VGV) offers a reliable, safe, Project Volt Gas Voltphase-out of nuclear power and fossil fuels with the possibility of enhancement rather than a reduction in life style.

“With Project VGV, industry and government have the solution for a successful energy transition, to optimize wind and solar energy,” said Lepage and Bell.

An element of the program would rely on new technology that converts surplus electricity generated by wind farms and solar parks to methane, that can then be stored for months in the existing natural gas grid. Bell and Lepage say the methane would become the “battery” for renewable energy while simultaneously making fracking obsolete.

“We will use the surplus energy from nuclear, now largely wasted at night, to help pay for the exit from nuclear. And we will use the CO2 generated from burning waste, biomass and from steel mills and cement plants to generate the methane,”  explained Bell.

Lepage added, “From now on, the question of exiting from nuclear while maintaining a continuous and sufficient production of electricity should not be a taboo, but a realistic political choice, one which will determine the employment of tomorrow.”

Free Ethanol Seminars Coming in Nebraska

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NEB 2013 Ethanol Safety SeminarsThe next two Ethanol Safety Seminars will take place in Grand Island and Columbus, Nebraska on June 12, 2013 and June 13, 2013. The safety seminars are sponsored by the Nebraska Central Railroad and the Renewable Fuels Association (RFA). The sessions are FREE to attend and open to the public.

Attendees will receive in-depth information on proper training techniques that first responders and hazmat personnel need to effectively respond to an ethanol-related emergency. Certificates of Completion will be awarded at the completion of each safety seminar.

There will be two sessions each day: 9:00am-2:00pm and 5:30pm-10:00pm. Lunch and dinner will be provided. To register, please visit www.rfa.traincaster.com.

EPA’s 411 on RINs & RVOs

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A recent “Today in Energy” brief published by the U.S. Energy and Information Administration takes a look at how the Environmental Protection Agency (EPA) monitors Renewable Identification Numbers (RIN) and Renewable Volume EPA rincycleObligations (RVO) as part of the Renewable Fuel Standard (RFS). RVOs are the targets for each refiner or importer of petroleum-based gasoline or diesel fuel, while RINS allow for flexibility in how each of them may choose to comply.

The 2013 RFS target is 16.55 billion gallons of renewable fuels including targets for cellulosic biofuels, biodiesel, advanced biofuels in addition to an overall target. Volumes for the four RFS targets are assigned to obligated parties, refiners and importers, by way of RVO percentages that are calculated by dividing each RFS target by the total estimated supply of nonrenewable gasoline and diesel fuel in each year.  For 2013, the four proposed RVO targets are:

  • cellulosic biofuels – 0.008 percent;
  • ethanol equivalent for biomass-based diesel – 1.12 percent;
  • advanced biofuels – 1.6 percent; and
  • total renewable fuels – 9.63 percent.

Obligated parties must cover their RVOs by surrendering RINS within 60 days after the end of each calendar year.

RINS are used by the EPA as both a way to keep records and build flexibility into the RFS for meeting RFS volumes. Each gallon of fuel is assigned a unique 38 character code and is valid for the year in which it was generated; however, up to 20 percent of a year’s mandate can be met with RINs generated in the previous year.

In addition to monitoring compliance, RINs also add value to each gallon of biofuel to which they are attached. The value of RINs provides an economic incentive to use renewable fuels. If RIN prices increase, blenders are encouraged to blend more renewable fuels. However, when the biofuel is more costly than nonrenewable fuels but is still needed to meet RFS standards, the RIN value should increase to a point at which firms will increase biofuel blending.

And there you have it: EPA’s 411 on RINs and RVOs. Click here for more information.

Ethanol Supporters Disappointed in Florida Bill

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A bill repealing Florida’s Renewable Fuels Standard (RFS) was signed into law Friday by Gov. Rick Scott to the disappointment of many ethanol and other biofuel supporters.

deb-mayfieldState Representative Debbie Mayfield of Vero Beach, led the opposition to the repeal of the requirement which was passed in 2008 when her late husband Stan Mayfield chairman of the Florida House energy committee. “We said that we were going to be a renewable energy state,” said Mayfield.

The Specialty Equipment Market Association (SEMA) supported the repeal, but long-time member and strong ethanol supporter Bobby Likis says they did not speak for him. “The automotive industry, businesses and consumers SEMA is purported to serve will regret this action, which is not based on facts but rather on misinformation, myths and interests spear-headed by a few,” said the automotive technician and talk show host, adding that those supporting the repeal ignored the interests “of the consumer, advancing technology, independence from foreign oil and American business development and financial success.”

“As this country struggles to comeback from recent economic hardships, it is sad to watch a state legislate away good paying jobs in the renewable energy sector and the abundant economic opportunities that come along with them,” said Bob Dinneen of the Renewable Fuels Association and Tom Buis with Growth Energy in a joint statement, noting that the federal Renewable Fuels Standard (RFS) supersedes any state law. “This toothless legislation might win favor with Big Oil supporters, but it has closed the door on job creation by the biofuels industry and sent investors packing for more visionary states. This is most definitely a lost opportunity for people of Florida.”

Biofuels, Farm Groups Applaud Pentagon’s Move

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coalition1Groups representing biofuels and farm interests are praising the Pentagon’s action to develop cheaper, drop-in biofuels. Michael McAdams, president of the Advanced Biofuels Association, says the $16 million awarded under the Defense Production Act is a significant step in supporting efforts to build commercial drop in fuels facilities:

“Biofuels offer outstanding performance and environmental sustainability, while also providing a diversity of fuels that increases security for the men and women serving in our armed forces. The vision of the military once again leads the world in the evolution of fuels, and is one that should be supported and admired by all.”

Another coalition of groups, including the Advanced Biofuels Association, as well as the Algae Biomass Organization, American Council on Renewable Energy, American Farm Bureau Federation, the Biotechnology Industry Organization (BIO), and the National Farmers Union, among others, echoed those sentiments:

“Adopting advanced “drop-in” biofuels will help the DoD and the nation achieve its broader national security goals,” the groups said. “As the largest institutional consumer of liquid fuels in the world, the U.S. military is incredibly susceptible to the volatile global oil market. The DoD estimates that every 25 cent increase in the price of a gallon of petroleum-based fuel costs the military $1 billion in additional fuel costs. It is increasingly important to find domestically produced alternatives to improve the country’s energy security, meet global energy demands, and provide jobs, while strengthening our military and domestic economy.

“By pursuing new processes and technologies for producing next-generation biofuels, we are working to accelerate innovation in a critical and growing sector that will help to improve U.S. energy security and sustain the U.S. military’s readiness.”

New DoD Contract Looks to Crack $4/gal Biofuels

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dodshieldThe Pentagon has handed out a series of contracts for aviation biofuels totaling $16 million. Bloomberg reports the three refineries in Illinois, Nebraska and California that won the Department of Defense awards hope to make the green fuels for less than $4 per gallon:

The contracts will be matched by more than $17 million in investments by the contractors, Sharon Burke, assistant secretary of defense for operational energy, said today in a telephone interview. The companies will develop plans for refineries capable of supplying at least 150 million gallons of biofuel for less than $4 a gallon, she said.

“We see a national security benefit in global diversification of liquid fuels,” Burke said. The department hopes the effort will “catalyze greater production of these fuels across our economy,” she said.

The contractors are Emerald Biofuels LLC, based in Golf, Illinois; Natures BioReserve LLC in South Sioux City, Nebraska; and Fulcrum Brighton Biofuels LLC in Pleasanton, California.

The article goes on to say the biofuels will be made from animal fats, food-processing waste and oil-seed crops.

Meanwhile, Fulcrum Brighton Biofuels says it has perfected a process to turn municipal solid waste (“MSW”) – household garbage – into jet and diesel fuels, which could open up an 80 billion gallon per year fuel market:

“Fuel diversity adds an integral component to our innovative business plan, creating a platform to offer customers the product they want, in the market they want. Our process is now capable of producing jet fuel, diesel and ethanol from residential garbage that would otherwise be landfilled,” said E. James Macias, Fulcrum’s President and Chief Executive Officer.

New Algae-to-Biofuels Photobioreactor Designed

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Alicante1Researchers at a university in Spain believe they have a new photobioreactor that will make it easier to turn algae into biofuels. The University of Alicante announced a patent on the new device:

The Research Group in Polymer Processing and Pyrolysis at the University of Alicante is the team that has designed and developed this device, consisting of a photobioreactor, easily scalable to larger production, which has attracted the interest of both Spanish and foreign firms in the sector of biotechnology.

The director of the research group, Antonio Marcilla Gomis, explained that the novelty of this photobioreactor compared to those existing is that it allows mass production, less cleaning and maintenance operations, better use of CO2 and better light transfer to cultivation…

The design of this novel technology aims to overcome any difficulties or problems that have been presented over the years with the use of other similar cropping systems.

“The subject on the cultivation of microalgae is having a major boom in terms of research in the last fifteen years as an alternative energy to oil”, he said.

Marcilla Gomis did admit that turning algae into fuel is still not on par with the profitable process that petroleum uses. But they’ll keep working on making it comparable, including finding multiple uses for the algae, such as food, pharmaceuticals or cosmetics.

Filling Up? Ethanol Will Save You Money

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This Memorial Day, the Renewable Fuels Association (RFA) is reminding drivers that ethanol can help save money at the pump. As national gas prices continue to rise, the national average today is $3.66 according to GasBuddy.com. For drivers living on the coasts, it’s not uncommon to see high gas prices. Yet the oddity this year is that the highest prices in the nation last week were in Minnesota. According to various media reports, the statewide average is $4.26 per gallon.

“It is getting painful yet again to stand at the pump and watch the dollars fly by,” said Bob Dinneen, president and CEO of RFA. Thankfully, ethanol exists to help Gas Buddy Map May 27 2013lower prices, stretch the gasoline supply, and provide both engine and environmental benefits. On a larger scale, the ethanol industry is a high octane economic engine that is supporting more than 365,000 jobs across America, revitalizing challenged rural communities, and reducing the American dollars sent overseas to buy petroleum from often hostile dictators in oil-rich countries.”

According to 2012 updated research conducted by economics professors at the University of Wisconsin and Iowa State University for the Center for Agricultural and Rural Development (CARD), domestically-produced ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011. That is an additional 20-cent savings over the $0.89 these same economists recorded in 2010.

It is expected that drivers in Iowa may also soon be hit with increased costs. Once again, ethanol, this time in the form of E85 (85 percent ethanol, 15 percent gasoline) that is widely available in the Corn Belt, is delivering significant savings to owners of flex-fuel vehicles.

Dinneen added, “I suspect owners of flex-fuel vehicles will enjoy their summer driving vacations a bit more than other drivers. The savings that flex-fuel drivers will enjoy is significant.”

Needed: Summer Gas Loan

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It’s that time of year when families hop in the car and begin summer vacations. It’s also the time of year when gas prices jump up and the cash in wallets jumps out. When I filled up my tank yesterday, I thought I might have to go the bank and take out a “summer gas loan” to help pay for high gas prices. I’m can’t be the only one in this boat as the high gas prices are dominating local TV news casts these days.

Gas Bill May 23 2013Growth Energy’s CEO Tom Buis notes that Big Oil’s predictability is absurd. Every year the same thing happens, as more people hit the road, prices climb. It is just as certain that the sun will set in the evening, as oil companies will use any excuse to gouge consumers and blame some outside factor,” said Tom Buis, CEO of Growth Energy. “After roughly 40 days of price increases in February, switching seasonal blends were blamed. Now, it is refinery planned maintenance and tight regional supplies. Their unending excuses are as long as the list of government subsidies they have received over the last century.”

Buis says this is just another example of many, of why renewable biofuels are necessary. They provide consumer savings and a choice at the pump. They reduce dangerous dependence on foreign oil. “While Big Oil touts all the new wells, the fracking and the so-called abundant supply right here at home, prices have not gone down. Why do prices remain so high with a so-called increase in supply? Oil companies will continue to rake in record profits on the backs of their customers as they continue their monopoly on the liquid fuels market by blocking competition and doling out the same baseless excuses time and again,” Buis continues.

“Enough is enough,” says Buis. He calls for an end to the absurd addiction to foreign oil and encourages drivers to use homegrown American ethanol. He also stresses the need to stop paying nearly a billion dollars a day for fossil fuels and foreign oil and spend the money at home.

“The latest reports that motorists will pay record prices this Memorial Day weekend at the pump is no surprise, but just one of many reasons it is time we break the addiction to oil and start using higher blends of ethanol.”

Ethanol Improving While Oil Gets Worse

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The House and Energy Commerce Committee has released its third white paper on the Renewable Fuel Standard, “Greenhouse Gas Emissions and Environmental Impacts.” Executive Vice President of the American Coalition for Ethanol (ACE), Brian Jennings, responded with written comments that included but were not limited to feedback on the RFS role on the environment, agricultural sustainability and tailpipe emissions.

“…petroleum represents the most harmful source of transportation fuel while renewable fuels such as ethanol represent the safest. Recent crude oil spills have killed fish, animals, and plant life. Ethanol, on the other hand, is derived from plant life and ethanol coproducts are fed to fish and livestock. At the same timeCorn_field ethanol’s lifecycle greenhouse gas (GHG) emissions and production efficiencies are dramatically improving, extracting and processing crude oil into gasoline is becoming more expensive, inefficient, and destructive to the environment,” wrote Jennings. (Read ACE’s full comments here.)

The Renewable Fuels Association (RFA) responded to seven questions proposed in the white paper by proposing 10 questions of their own.(Read RFA’s full comments here.)

RFA President and CEO Bob Dinneen said, “When assessing the environmental impacts of renewable fuels, it is absolutely imperative to make appropriate comparisons to the impacts associated with the use of petroleum fuels. In other words, it is inappropriate to examine the environmental effects of the RFS without simultaneously examining the effects of not having the RFS. It is also important to compare new renewable fuels entering the market to the actual sources of marginal petroleum they are delaying and displacing.”

Iowa Gets Aggressive on Blend Wall

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E85 pump in IowaThe Iowa Legislature has passed H.F. 640 that supports fuel choice for Iowa’s fuel retailers and consumers. The legislation protects retailers from Big Oil efforts to restrict competition by guaranteeing them the right to offer ethanol and biodiesel blends of their choice including E15, E85 and B20.

“This legislation represents a solid step forward for higher ethanol blends, consumer choice, and the federal Renewable Fuel Standard (RFS),” said Iowa Renewable Fuel Association (IRFA) President Rick Schwarck, CEO of Absolute Energy. “I find it ironic that Big Oil consistently claims that retailers don’t want to sell higher ethanol blends like E15, yet they use every trick in the book to prevent retailers from offering E15.  In fact, the American Petroleum Institute (API) fought tooth and nail to try to keep these retailer protections out of the bill.  This bill tears down one part of Big Oil’s bogus blend wall in Iowa.”

The legislation includes a section that amounts to a retailer ‘Bill of Rights,’ preventing oil refiners’ supply agreements from directly or indirectly limiting the ability of local retailers to offer the ethanol and biodiesel blends they choose. The provision was based on a law enacted in South Dakota in 2011 and addresses specific, anti-competition provisions from actual refiner supply agreements.  As a result, new supply agreements will not be allowed to:

  • Restrict fuels from other suppliers;
  • Restrict installing a blender pump;
  • Restrict using current equipment from offering higher blends, like E15, E85, and B20;
  • Restrict ethanol or biodiesel blends from being advertised;
  • Restrict the locations where a retailer may offer the higher blends (like under a canopy); and
  • Restrict payment for higher blends to cash only (no credit cards).

“One supplier should not be allowed to dictate to local retailers what they can and cannot do with products from other suppliers,” continued Schwarck.  “More freedom for retailers to offer the fuels they choose often means more ethanol and biodiesel blends, which benefits consumers by increasing competition at the pump.  And it also means more RINs will be generated for use in complying with the federal RFS.”

Absolute Energy Offers Drivers Relief at the Pump

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As Memorial Day approaches marking the beginning of summer driving season, gas prices have spiked. Last week, gas prices went up .19 cents per gallon in Minnesota Gas PricesIowa with ending average prices at $3.70 per gallon. Spikes were even higher in Minnesota/St. Paul with prices averaging $4.21 across the state while the national average is around $3.60 per gallon.

In response Absolute Energy, an ethanol plant located on the Iowa-Minnesota border, is offering Minnesota drivers some relief at the pump in the form of ethanol. Absolute Energy is offering E85, (85 percent ethanol / 15 percent gasoline), in bulk to gas marketers impacted by the recent shut-down of three oil refineries for mostly seasonal reasons. According to E85Prices.com this week, the published average statewide E85 price is averaging $3.08 and has been reported to be as low as $2.39 per gallon in Eagan, Minn.

Rick Schwarck, CEO of Absolute Energy, said, “With gas prices spiking and ethanol plentiful in the Midwest, this will be the summer of the flex-fuel vehicle. Drivers of FFVs should be able to take advantage of serious savings at the pump by using E85. Not only will they be saving money, they will be choosing a fuel alternative that creates jobs and opportunities throughout Minnesota, Iowa and other states. E85 will drive us toward a cleaner, brighter summer sky thanks to lower greenhouse gas emissions while also strengthening our national security and economy.”

Ag Processing Shuts Its Doors

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Screen Shot 2013-05-22 at 8.54.31 AMAg Processing Inc a cooperative (AGP) announced it has permanently shut down operations of its corn processing plant at Hastings, Nebraska. The plant had been on an extended shutdown since February 1, 2013 amid challenging economic conditions. At that time, the company said it would continue to evaluate the future of the plant. This week the decision to permanently close the corn processing operations was made public.

The cooperative also operates a soybean processing plant, a vegetable oil refinery and an AminoPlus production facility at its industrial complex in Hastings. Company officials reiterated that those operations will not be impacted by the closing of the ethanol plant operations.

AGP is the largest farmer‐owned soybean processor in the world, is owned by 178 local and regional cooperatives representing over 250,000 farmers from 15 states throughout the United States. Corporate headquarters are located Omaha,Nebraska.

Energy Exec Survey: Energy Independence by 2030

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According to the 11th annual Energy Industry Outlook Survey conducted by the KPMG Global Energy Institute, 62 percent of energy executives believe the U.S. can attain energy independence by 2030, eliminating dependency on foreign oil. The survey polled more than 100 senior energy executives in the U.S. and found that this is a 10 percent increase from last year’s survey. Of this number, 23 percent believe the country can attain energy independence as soon as 2020.

Utility owned Wind-farmIn addition, 17 percent of respondents believe that U.S. energy independence will never happen, a drop of 10 percent.

“Increased domestic production, particularly from shale assets, is having a profound impact on the global energy sector, introducing new sources to the energy matrix,” said John Kunasek, national sector leader for energy and natural resources for KPMG LLP.

He continued, “This ‘shale gale’ is certainly contributing to the increased optimism among energy executives on the potential for U.S. energy independence and driving large investments into the development and production from these shale assets, including ‘Greenfield’ investment plays.”

The survey shows that natural gas is predicted to play an important role and 79 percent of those surveyed agree that the energy industry’s emphasis in developing environmentally friendly technologies should focus on natural gas, followed by nuclear (39 percent), solar (33 percent), and clean coal technologies (32 percent), indicating a slight shift away from the total bullishness around natural gas seen in the 2012 survey results, to a more balanced view with solar and wind technologies making gains.

Ninety-five percent of energy executives expect continued R&D investment in alternative energy projects this year while 55 percent anticipate investments will remain unchanged in 2013. However, the percentage of respondents predicting a 10 percent increase in R&D investment nearly tripled, from 11 percent in 2012 to 30 percent in 2013. Continue reading →