Category Archives: biofuels

Europe Urged to Re-reconsider Biofuels Policy

Posted on by

eu-flagIt wasn’t that long ago that Europe was a champion of biofuels, in particular, biodiesel, as just a few years ago the continent adopted a policy of having 10 percent of transportation fuels come from renewable sources, including biofuels. This boosted biodiesel demand, coupled with favorable tax laws and the popularity of diesel vehicles. This piece in Public Service Europe says that when cheaper imported vegetable oils replaced European biofuels crops, there was pushback that was unfounded and really amounted to trade protections for Europeans, and now the continent is moving to a 5 percent usage level … basically where it stands today. But the article says it’s not too late for Europe to re-reconsider its biofuels policy:

Therefore, with this cap, the EU endangers – or reinterprets – its own 10 per cent target leaving the status quo, conventional oil, as the biggest winner. And it strikes a blow to equity and development. Shall we continue to import oil from rich countries so they can become richer rather than taking the opportunity to import biofuels from poor countries? Wild, rapid policy shifts like this have costs. They disrupt markets, stifle innovation and undermine the EU’s credibility. Continue reading →

ACE: RFS is Catalyst for Innovation

Posted on by

The House Energy and Commerce Committee on the Renewable Fuel Standard (RFS) recently released a second white paper, “Agricultural Sector Impacts,” in an effort to make decisions on the future of the RFS. Comments were due today and in response, Brian Jennings, Executive Vice President for the American Coalition for Ethanol (ACE) notes that the RFS is a catalyst for agricultural innovation worldwide.

Regarding the RFS and U.S. agriculture: “The RFS provides an economic incentive for scientists and technology firms to help farmers sustainably produce significantly more bushels of corn on an acre of existing cropland. Since the RFS was enacted in 2005, these advancements, such as new seed varieties and more ACElogosustainable tillage practices, have enabled U.S. farmers to produce, on average, nearly 20 additional bushels of corn per acre than before.  Still more innovations, like drought-tolerant genes, are being developed to improve corn yield further.  The 2012 drought-ravaged corn crop was twice as large as the drought-ravaged crop of 1988 and three-times larger than the U.S. corn crop 50 years ago.  None of this progress would have been possible without the RFS.”

Regarding the RFS and global agriculture: “From 2000 to 2011, a timeframe which includes when the idea for the RFS was developed by ACE, when it was enacted by Congress, and implemented by EPA, world corn production rose 12 billion bushels as 43 nations, mostly in Africa and the former Soviet Republic, doubled their production of corn. Repealing the RFS would simply discourage farmers around the world from planting corn, which runs contrary to what the meat and livestock groups supporting repeal want.”

Regarding the RFS and food prices: “Despite the hysteria created by oil companies who oppose the RFS because it enables renewable fuel to compete for market share with petroleum, and food manufacturers who oppose the RFS because they feel entitled to cheap corn forever, the facts indicate virtually no correlation between the RFS or prices farmers receive for corn and retail food prices.  When we pay $1 for groceries, about 14 cents goes to the farmer. About 35 cents of that dollar pays for the energy to make, transport, process, and preserve the food we buy. When oil prices rise, so do food prices. If policymakers genuinely want to reduce food prices, they should support the RFS because it replaces petroleum with renewable fuel.”

“Special interests who profited handsomely in the past from corn prices that averaged $2 per bushel and who are today heavily lobbying the Congress to repeal the RFS, profited on the backs of American taxpayers who were paying for multi-billion dollar commodity support programs under previous farm bills,” added Jennings. “With global oil demand on the rise and global oil prices at a new equilibrium, it is highly unlikely those special interests who feel entitled to cheap corn forever will get their wish.”

DF Cast: Oil Vs. Biofuels – Can’t We All Just Get Along?

Posted on by

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.

Florida Axes State Renewable Fuel Standard

Posted on by

gregeversEarlier this week, the Florida Legislature passed HB4001, a bill that repeals the state Renewable Fuel Standard (RFS). Senator Greg Evers was a huge supporter of the bill, that allows Florida consumers the ability to purchase gasoline that is ethanol free.

In a statement, Evers said, “The bill eliminates the unnecessary power of the government to force Florida citizens to buy and sell ethanol blended gasoline. It returns that power to the people and restores the power of the free market by giving consumers and retailers a choice regarding what fuel they wish to buy.”

The Renewable Fuels Association (RFA) and Growth Energy responded to the news in a joint statement:

“Today’s Senate vote was a pyrrhic victory for ethanol detractors. It substantively changes nothing because the state mandate was redundant. The federal Renewable Fuel Standard will still apply and, thankfully for consumers who will continue to see savings at the pump, ethanol and other renewable fuels will be sold in Florida.

All this bill has done is put politics and oil industry profits ahead of economic opportunity and jobs in the state. The only result of this legislation will be a loss of jobs and economic opportunity in Florida. Florida has made it clear — biofuels and the valuable jobs that are created in the renewable fuels industry are no longer welcome in Florida.”

Lee Consulting: Alternative Energy Knowledge Center

Posted on by

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.

RWL1So 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

Ten Ways Renewable Fuels are Enviro

Posted on by

The Iowa Renewable Fuels Association (IRFA) has unveiled a list of 10 ways the renewable fuels industry is helping to improve the environment. According to IRFA, renewable fuels offer positive impacts on the environment compared to petroleum-based counterparts.

“Renewable fuels make our planet a better place to live with healthier air and water, and that’s exactly what Earth Day is all about,” said IRFA Executive Director Monte Shaw. “Smart energy policies like the Renewable Fuel Standard (RFS) encourage the production and use of cleaner, more environmentally friendly fuels like E15 and B20 that significantly reduce the environmental harm that is caused by petroleum-based fuels.”

Corns impact source NCGAThe following Top 10 list highlights ways in which ethanol and biodiesel have benefited the environment over the past decade through improvements at the plant, on the farm, and out of the tailpipe.

1.  According to the U.S. Department of Agriculture (USDA), for every unit of fossil energy needed to produce biodiesel, 5.5 units of energy are gained, while ethanol generates 2.3 units of energy for every unit of fossil energy input. By comparison, gasoline and diesel fuel have negative energy balances.

2.  The adoption of regenerative thermal oxidizers (RTO) has significantly reduced volatile organic compound emissions from ethanol plants.

3.  On a per gallon basis, today’s ethanol plants require 28% less thermal energy and 32% less electricity than a decade ago, according to the University of Illinois at Chicago.

4.  According to the U.S. Environmental Protection Agency (EPA), biodiesel reduces greenhouse gases (GHG) by up to 86% compared to petroleum diesel, while Yale University found that ethanol reduces GHG by up to 59% compared to gasoline.

5.  Water used to produce a gallon of ethanol has dropped 40% over the last decade, while biodiesel production reduces wastewater by 79% and hazardous waste by 96% when compared to petroleum diesel.

6.  Increased income from ethanol demand for corn has allowed farmers to invest in precision farming equipment and stronger conservation and environmental protections.

7.  The environmental footprint of U.S. corn production has improved greatly since the advent of the ethanol industry, including significant reductions in soil loss, irrigation, energy use and the amount of land required to produce a bushel of corn.

8.  Ethanol and biodiesel are both biodegradable and non-toxic.

9.  Biodiesel and ethanol significantly reduce tailpipe carbon monoxide emissions, air toxics, fine particulate matter and smog pollution compared to petroleum diesel and gasoline, making our air healthier to breathe.

10. Since the beginning of the RFS, biodiesel use alone has reduced lifecycle greenhouse gas (GHG) emissions by nearly 74 billion pounds, the equivalent of removing 5.4 million vehicles from U.S. roads.

Dyadic Talks Enzyme Production for Biofuels at ABLC

Posted on by

MarkEmalfarbA 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

Get Your Green on with Biofuels

Posted on by

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 Go Greenin 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

LanzaTech CEO: Need Biofuels, Oil & All of the Above

Posted on by

holmgren2While 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

Shell at ABLC: Don’t Blame Big Oil for Blend Wall

Posted on by

reese1One of the great things about the Advanced Biofuels Leadership Conference is the diverse group of biofuels stakeholders with diverse points of view. Case in point, Shell Oil’s presence at the gathering, and the company’s Downstream Policy & Advocacy Manager, North America, John Reese, who makes the contention that it’s not the oil companies who are creating the E15 blend wall.

“We are really maxing out on the ability to blend ethanol into gasoline,” he says because the automakers don’t approve above E10 blends for about 95 percent of the cars and trucks on the roads now. “EPA did approve the use of E15 for 2001 and newer vehicles, but the issue is the automobile manufacturers don’t support that.”

Groups such as the Renewable Fuels Association contend differently, and even Secretary of Agriculture Tom Vilsack told me that those 2001 and newer non-flex fuel vehicles should be able to use E15 without any modifications to those vehicles. But John says we should believe those who have built and tested the vehicles. And while that’s coming from a big oil company, he says Shell supports biofuels because, frankly, the company has a stake in the success of the green energy market.

“We have a joint venture to produce ethanol, and we have interests in cellulosic biofuels going forward, so we’re really looking to find solutions to this.”

Listen to my entire interview with John here: John Reese, Shell

ABLC: Increasing Optimism in Biofuels Financing

Posted on by

grooby1A big part of any business operation is being able to secure the capital to allow the company to get started and grow properly. Obviously, that’s no different for the biofuels industry, and attendees at the Advanced Biofuels Leadership Conference heard some good news from the financing side of the house.

“I think the overarching message of the panel was a sign of increasing optimism,” says Chris Groobey, a partner in the law firm Wilson Sonsini Goodrich & Rosati, who spoke during a session on debt financing. He says the last year and a half has been a tough time for the biofuels industry, but it’s not because the companies were doing anything wrong. It had more to do with the political and external environments surrounding the industry. And now he’s optimistic things are changing on the government and private financing fronts.

“Now you have folks who have made their companies and projects even better, and now that you have a solidified political environment, you have an opportunity now to do better things legislatively and you have folks in the government and private sector side of the money who are very, very motivated to get this moving. And they see 2013 as the time to do that.”

Chris adds that while there seems to be more Departments of Energy and Defense grants to use, those can be tricky to make sure the money is lined up correctly. Law firms such as his specialize in helping biofuels makers to navigate that maze.

He says while it’s pretty tough to get venture capital money in to the industry right now, there are plenty of opportunities to get debt investors involved, including some pretty big financial institutions that want to be part of this green energy market.

Listen to more of what Chris had to say here: Chris Groobey, Wilson Sonsini Goodrich & Rosati

GlobalData: BioEthanol Car Fuel of Future

Posted on by

According to a new report by @GlobalDataEnergy, #bioethanol is the car fuel of the future. The report, “#Cellulosic Ethanol – Global Production, Major Trends, Regulations, and Key Country Analysis to 2020,” finds that #ethanol is the most widely acclaimed alternative or additive for gasoline used for running vehicles. In addition, the U.S. ranked number one in biofuel production using natural waste feedstocks. According to the latest report, the U.S. is the global leader in cellulosic ethanol production, manufacturing 5.42 million gallons in 2012.

bioethanolBioethanol is produced through the fermentation of cellulosic feedstock such as forest and agricultural waste. The reports finds that the U.S. has an abundance of biomass feedstock, and dedicated energy crops such as #switchgrass and #miscanthus that are grown exclusively for conversion into cellulosic ethanol to help the nation’s ambition to meet fuel needs while reducing greenhouse gas (GHG) emissions.

The U.S. is the only country currently working to promote the cellulosic ethanol market, says the report, with the U.S. Department of Energy (US DOE) providing grants to help companies establish a commercial-scale cellulosic ethanol plant. As a result, several companies have set up pilot and demonstration plants and a few commercial plants are expected to be commissioned in late 2013. The report also finds that the U.S. have also mandated the addition of 10% ethanol in gasoline fuel, setting steady domestic demand for the industry, while certain recently released cars are able to run on a 85 percent ethanol, 15 percent gasoline mix.

The report finds corn stover and wheat straw are among the most freely available types of feedstock used in countries producing cellulosic ethanol, and growing ethanol demand may see these nations utilizing the residue of their corn crop for ethanol production, creating a sizable market for agricultural waste. GlobalData expects that the growing feedstock demand will create a structured market, in which biomass feedstock prices will be set based on their ethanol yield and the prevailing trading price of ethanol.

Some EU countries such as France and Italy have cellulosic ethanol production infrastructure, but a limited supply of biomass feedstock. Growth of commercial production in these countries may fuel the need to import feedstock from nearby countries or expand production to other countries with ample feedstock availability. A few producers with upcoming commercial scale plants in the U.S. have already started signing agreements to procure agricultural residue and other kinds of cellulosic feedstock.

Global cellulosic ethanol is expected to increase from 14.25m gallons in 2012 to 412.25m gallons in 2020, with commercial production anticipated to take off on a large scale in late 2013 and 2014, thanks to major players adding substantial production capacity and new companies joining the market. The report finds that the U.S. is expected to retain its market dominance until 2020.

IEA: Need Major Scale Up in Global Biofuels Production

Posted on by

Today, the International Energy Agency (IEA) released their Tracking Clean Energy Progress report in New Delhi that details the increased role that biofuels will need to play in reducing greenhouse gases (GHG) as part of their Climate Change Scenario by 2020. The Global Renewable Fuels Alliance (GRFA) applauded this finding, stating that biofuels are already significantly reducing global GHG emissions.

According to the report, globally, the world is not on track to meet the IEA’s goal of holding global climate change to a 2°C rise by 2020. According to the IEA’s Energy Sector Carbon Intensity Index (ESCII) average CO2 emissions have only improved by 0.02 tonnes of CO2 per tonne of oil equivalent in the last 20 years. In Tracking Clean Energy Progress 2013order to reach the 2020 target the IEA recommended that annual biofuels production needs to more than double and advanced biofuels capacity must increase six-fold.

“Biofuels are the only real viable option available today to reduce emissions in the transportation sector,” said Bliss Baker, spokesperson for the GRFA. “We agree with the IEA that biofuels offer real GHG emissions reductions today and that we must increase biofuel usage if we want to mitigate the impacts of climate change.”

In order to facilitate this major scale up in global biofuels production, the IEA released some specific recommendations for governments in their report:

  • Lessen the risks for early investors through mechanisms such as loan guarantees, guaranteed premiums for advanced biofuels, or direct financial support for first-of-a-kind investments.
  • Targeted policy support for advanced biofuels is required to ensure large-scale deployment.
  • Monitor sustainability in feedstock production.

“Frankly, the GRFA is not surprised by these findings, despite the commitments from world leaders we are clearly struggling to reduce emissions in the transportation sector,” concluded Baker.

Biofuels Conference Told to be Biomass Agnostic

Posted on by

ghisoli1If you’ve never been to Italy, you might be inclined to believe the whole country is very much the same. But you’d be wrong. From the simmering sea shores of the southern coasts to the towering Alpine peaks of the north, where people are more likely to speak German than Italian, the whole country is a rich tapestry of diverse people, customs and foods. In that tradition, Guido Ghisolfi of the Italian company Beta Renewables told attendees of the Advanced Biofuels Leadership Conference (ABLC) that they, too, needed to be diverse in their thinking of biomass for biofuels.

“It’s quite important that the [refineries] be biomass agnostic – they can take several different types of biomass without changing the hardware,” he says, adding that no matter where you are in the world, biomass is seasonal by definition, and those who want to convert the various types into fuels need to be able to change to stay in business year-round. But he admits that currently there is not one system that converts the divergent forms of biomass, whether it’s corn stover or wheat straw or even what’s left over when you press olives, into biofuels. And the technical solution might be simpler than people think.

“So far, people have not focused on the advantage of having a multi-feedstock plant. I’m pretty sure the new technologies coming up in the next few years will be able to handle many more types of biomass,” especially when the costs drive that need.

Guido says you want to bring technology to the territory so you can use all the various biomass feedstocks that an area might have. He adds that biofuels producers need to be flexible as well … and spend less time complaining.

“Instead of complaining and wailing about the RFS, we have to deliver competitive fuel that people will but because it is cheaper and not because it is green.”

You can hear my conversation with Guido here: Guido Ghisolfi, CEO, Beta Renewables

The Truth Behind High Gas Prices

Posted on by

Fuels America has released a new video highlighting the truth behind high gas prices and how renewable fuels can help. Many studies, including a report from the American Security Project, have shown that the country can’t drill its way out of high gas prices and vulnerability to global oil markets. In addition, recent International Energy Agency (IEA) data shows drilling will still leave us with oil that costs upwards of $215 per barrel.

Other studies have shown that renewable fuel lowers gas prices by an average of $1.09 per gallon in 2011, reducing the average American’s gas bill by more than $1,200 per year.