Biofuels Can’t Get Overcome with Negativity Overhang

cannon-vilsackThere’s some real negativity hanging over the biofuels industry these days. And while any industry has risks, it seems that the setbacks loom larger over the renewable energy sector compared to what their competitors in the conventional energy sector face. In his talk before the Advanced Biofuels Leadership Conference, “De-Risking a Risky World,” Fred Cannon, the CEO of cellulosic fuel maker KiOR, told the group that the biggest challenge facing the biofuels industry is perception, and they have to shift their thinking to a perception of success for others to see them as successful (his infectious positive attitude is probably why USDA chief Tom Vilsack singled him out to talk with him one-on-one at the conference).

I caught up with him afterwards, and he told me the way to overcome the negatives hanging over the industry is to highlight the wins out there.

“You build it one success at a time,” Fred says. “Every company that starts producing and putting fuel in American cars, you just build on that momentum. And that mitigates the risks.”

But there’s an old saying that I remember from my days in the Air Force (and we’ll clean it up here for general audiences): one “Oh, shoot!” kills a hundred “attaboys.” Fred says we can’t get overwhelmed by the setbacks and feed more into the negative attitudes sometimes around biofuels, because everything seems to get amplified when you’re talking renewable energy. And he says there’s a good way to overcome all the negativity … outside and within the biofuels industry.

“Put clean, sustainable fuel in American cars,” adding that when KiOR’s Columbus, Mississippi cellulosic fuel plant is fully operational, it will put that clean fuel in 25,000 cars a year. He also urges patience, because it takes time to create a new technology.

“We have so much opportunity: a massive market, RFS2, technologies developing. We just have to get through this perception issue of the industry. And we will … one success at a time.”

Listen to my interview with Fred here: Fred Cannon, CEO, KiOR

Vilsack, LaHood Extend Aviation Biofuels Commitment

vilsack-lahood3Two members of Pres. Obama’s cabinet today have signed their names to an agreement that will extend the administration’s commitment to the production of biofuels for use in airplanes. Secretary of Agriculture Tom Vilsack and Transportation Secretary Ray LaHood have extended by five years the “Farm to Fly” program, an initiative to partner the USDA and Federal Aviation Administration (FAA) to help develop a viable biofuel for the aviation industry.

During remarks at the ceremony at the Advanced Biofuels Leadership Conference (ABLC) near Washington, D.C., Vilsack said this is a real job producer, especially for rural parts of the country.

“By continuing to work together to produce American made ‘drop-in’ aviation fuels from renewable feedstocks, we will create jobs and economic opportunity in rural America, lessen America’s reliance on foreign oil and develop a thriving biofuels industry that will benefit commercial and military enterprises,” Vilsack said. “USDA is pleased to partner with the FAA in our quest to develop alternatives to fossil-based fuel, which is critical to reducing carbon emissions and protecting the environment.”

LaHood pointed out that it’s been the hard work of people in attendance at the ABLC that made this agreement even a possibility.

“Through the use of sustainable alternative jet fuels, we are showing the world that we can come together to solve our greatest environmental challenges,” said LaHood.

vilsack-lahood4During a news conference after the signing, Vilsack said that while there are some that want to derail the renewable fuels industry through the destruction of programs such as the Renewable Fuels Standard (RFS), he remains one of biofuels’ biggest allies.

I asked Vilsack how they overcome objections from automakers who don’t approve of E15 for most cars on the road, and he bristled and remained steadfastly behind the studies that show it would work in model years 2001 and after.

“The testing would suggest that there would not be damage to the engines. And I think if consumers were given the option, consumers would choose [E15] because they want to be supportive of a domestic fuel industry.”

And while there might be some who dispute on how much renewable energy is saving consumers and creating jobs, Vilsack said there are some things that are crystal clear.

“I am positive consumers benefit from this. I am positive that hundreds of thousands of jobs are connected to this industry. And I am positive that it has stabilized farm income,” he said.

Listen to Vilsack and LaHood’s remarks here: Secs. Vilsack and LaHood at ABLC

“Farm to Fly” Agreement to be Signed at ABLC

ABLC2013-1As I mentioned earlier, I’ll be at the Advanced Biofuels Leadership Conference at the Gaylord National Resort & Convention Center near Washington, D.C. on Monday. And I just got this breaking news item in my email box from our friend, Jim Lane from Biofuels Digest:

vilsack-lahoodAgriculture Secretary Tom Vilsack and Transportation Secretary Ray LaHood will announce that the U.S. Department of Agriculture and Federal Aviation Administration, along with other partners, are extending an agreement to help develop viable renewable fuels for the aviation industry.

Secretary Vilsack and Secretary LaHood will both deliver remarks at the 2013 Advanced Biofuels Leadership Conference. This extension follows the initial success of the 2010-2012 “Farm to Fly” partnership to strengthen research and capacity building for aviation biofuels.

I’ll be there to get their comments on this agreement and more! Hope to see you at the ABLC!

Reform Bill: Transparent Attempt to Protect Big Oil

fuels-americaYesterday Rep. Jim Sensenbrenner introduced legislation that would stall the roll-out of E15. Many in the renewable fuels industry responded to the proposed legislation including Fuels America who noted that the legislation ignores the long track record of successful, rigorous testing that E15 has undergone. “What the bill is clearly geared toward, however, is promoting the interest of oil compaines looking to retain control over America’s fuel option.”

“E15 is the most tested renewable fuel in history and to suggest otherwise ignores a wealth of facts. In multiple tests, E15 has been put through the paces in more than 6 million miles of testing. The results of these tests were so satisfactory that E15 is used in NASCAR vehicles – high-performance racecars that can top 200 miles an hour – have opted to use E15, continued the Fuels America statement.

“The reality is that E15 provides options to Americans and the choice to power their cars with clean and renewable fuel. Unfortunately, Rep. Sensenbrenner’s legislation would limit that choice by favoring the oil industry over hardworking American families and businesses.”

ACElogoThe American Coalition for Ethanol (ACE) who recently had a team of more than 70 ethanol supporters meeting with Congressman in DC, noted that the legislation would require another 18 months of E15 testing at taxpayers expense. Senior Vice President Ron Lamberty called the bill “A transparent attempt to protect Big Oil’s profitable monopoly by taking away a driver’s right to choose which fuel to use in his or her own car.”

“Congressman Sensenbrenner is basing his opposition of E15 primarily on two studies that clearly selected vehicles and components based on their history of performing poorly regardless of the type of fuel that was in them,” said Lamberty. “All Mr. Sensenbrenner is proving is that he either doesn’t know what the studies actually say or he does know, and is misrepresenting the findings. Neither should be acceptable to those who serve with him on the House Science and Technology Committee. In the event the bill passes out of committee, we would hope Congress would recognize this bill for what it actually is and not pass it.”

Lamberty continued, “Jim Sensenbrenner has a well-known history of refusing to accept science that doesn’t agree with his personal opinions. And after repeatedly saying two years of E15 testing by EPA and DoE testing was a “rush to judgment,” does anyone think he’ll accept a smaller, shorter test from the National Academy of Sciences when it says E15 is safe? No, this isn’t about science, it’s about delaying to protect BP and Exxon-Mobil.”

“Congressman Sensenbrenner loves to talk about “individual choice and free-market competition” when he talks about health care, and “defending the freedom and individual responsibilities” of motorcycle riders to not wear helmets, but he doesn’t trust people to make their own choice at the gas pump? Ridiculous,” added Lamberty.

See You at Advanced Biofuels Leadership Conference!

ABLC2013-1We’ll see you next week at the Advanced Biofuels Leadership Conference (ABLC) in Washington, DC!

Our friends from Biofuels Digest are promising this will be a great forum running April 15-17 at the Gaylord National Resort & Convention Center with real dialogue on the real issues facing the biofuels industry. Just look at some of the folks who will be attending!

Thomas Vilsack, Secretary of Agriculture, USDA
Brooke Coleman, Executive Director, Advanced Ethanol Council
Brent Erickson, Executive VP, BIO
Joe Jobe – CEO, National Biodiesel Board
Mike McAdams, President, Advanced Biofuels Association
Mary Rosenthal, Executive Director, Algae Biomass Organization
Harry Baumes, Director, Energy Policy, USDA
Mindi Farber-DeAnda, Head, Biofuels & Emerging Technologies, Energy Information Agency
Gerald Ostheimer, FAS Science Advisor, USDA – US technical lead, Global Bioenergy Partnership (GBEP)
Congressman Joe Garcia (D-FL)
Valerie Sarisky-Reed, Acting Director, DOE Biomass Program

Plus, many, many more from industry, financing and the military.

I’ll be there Monday to catch all the action and post it right here on Domestic Fuel. See you in DC!

Genscape Launches 1M QAP-B-Assured RINs

Through Genscape’s Quality Assurance Plan (QAP), there are now 1,058,000 QAP-B Renewable Identification Numbers (RINa) available for identification to obligated parties using Genscape’s RIN Integrity Network, a visual platform where obligated parties identify producers offering QAP RINs. Genscape’s validation process utilizes the its monitoring technology to offer a cost-effective and truly independent solution to ensure producers are meeting the EPA’s RFS2 regulations.

Genscape Logo Genscape B-RINs are validated using the same  technology and monitoring processes as their A-RINs. “The Genscape B-RIN should be even more valuable than any other QAP provider B-RINs because of the rigor and transparency of Genscape’s processes,” said David Dunn, a broker with Progressive Fuels Limited (PFL). “Their model allows for sign-off on all B-RINs from any producer whereas other providers might not get a blanket acceptance because of their plant-by-plant auditing process.”

Through QAP pre-registration on the EPA website, Genscape is able to provide A-RIN and B-RIN assurance in the interim period between January 1, 2013 and the final QAP rulemaking.

“The interim period enables obligated parties to take advantage of the benefits of affirmative defense and the A-RIN backing before the rule is final. We are aggressively responding to market demand for QAP’d RINs in the interim period,” added Olson.

RFS Reform Bill Introduced

Rep Bob GoodlatteThis afternoon, Reps. Bob Goodlatte (R-VA), Jim Costa (D-CA), Steve Womack (R-AR), and Peter Welch (D-VT) released the RFS Reform Act in the U.S. House of Representatives. During a press conference to “unveil:” the bill Goodlatte said, “The RFS debate is no longer just a debate about fuel or food. It is also a debate about jobs, small business, and economic growth. The federal government’s creation of an artificial market for the ethanol industry has quite frankly triggered a domino effect that is hurting American consumers, energy producers, livestock producers, food manufacturers, and retailers. The broad coalition of organizations supporting this legislation echo the same sentiment: the RFS is not working.”

The representatives say that the RFS is causing food prices to go up, and has not provided relief for consumers at the pump.  In fact, they say, citing the RFS, the EPA is setting the target for refiners to blend cellulosic biofuels into gasoline higher than the amount of cellulosic biofuels that exists. When these non-existent fuels cannot be blended refiners are financially penalized, which ultimately gets passed on to consumers at the pump.

Goodlatte added, “The RFS Reform Act will eliminate corn-based ethanol requirements, cap the amount of ethanol that can be blended into conventional gasoline at 10 percent, and require the EPA to set cellulosic biofuels levels at production levels. Renewable fuels play an important role in our energy policy but should compete fairly in the marketplace. This legislation will bring the fundamental reform this unworkable federal policy needs now.”

The RFS Reform Act is supported by a diverse group of more than 40 organizations.

The renewable fuels industry is aghast at the bill saying it would impede the progress of the renewable fuels industry and takes the choice out of the hands of consumers,  all while protecting the virtual monopoly that oil companies have over America’s transportation fuels. Continue reading

Extreme Biodiesel to Acquire Promethean Biofuels

extremeprometheanCombine small with community, and you might get a big deal! Biodiesel Magazine reports that small-scale refiner Extreme Biodiesel announced it wants to acquire fellow California renewable energy maker, Promethean Biofuels, a community-scale biodiesel producer and cooperative corporation that also provides waste oil and used motor oil collection services:

“This relationship between Extreme Biodiesel and Promethean has flourished over the past several years, with talks of an acquisition having taken root several months ago,” said Joe Spadafore, Extreme Biodiesel’s corporate secretary. “This is an outstanding opportunity to expand the company in the industry with a means to enter into a cooperative environment through an established company with over 300 existing clients. This addition to Extreme Biodiesel, we anticipate, can be another solid revenue-generating venue for the company.”

Extreme Biodiesel is known for its “Mini Refineries,” waterless systems that can make 600 gallons of biodiesel per day.

IRFA Submits Comments on RIN White Paper

IowaRFAlogoThe Iowa Renewable Fuels Association (IRFA) has submitted a letter responding to the House Energy and Commerce Committee’s request for stakeholder comment on the Committee’s white paper regarding the so-called blend wall.

IRFA Policy Director Grant Menke stated, “Our stakeholder comments focused on three main points. First, there is no valid E10 blend wall. The blend wall vanished as soon as EPA approved E15—in the most extensive testing of any fuel in history—for 2001 and newer vehicles. 

Second, the oil industry has taken specific actions and inactions to attempt to build a bogus blend wall, brick by brick, to undercut the RFS and protect its virtual monopoly over the transportation fuel marketplace. We detail these deliberate Big Oil obstruction efforts in our comments and explain how these ‘bogus blend wall bricks’ could be removed immediately by the oil companies if they chose to do so. 

Third, the RFS is working and must be preserved. To gut the RFS would preserve the oil monopoly, reward the bad actors who have spent years undermining the RFS instead of preparing for it, and deprive consumers of more choices at the pump—choices that are cleaner, cheaper and homegrown. The fundamental intent of the RFS was to crack the petroleum monopoly, and it is on the verge of doing so if Congress allows it to keep working.”

Click here to read IRFA’s full comments.

Renewable Fuels Infrastructure Funds Available

Retail and wholesale distributors of fuels who are interested in installing new equipment to offer consumers more choice at the pump – higher blends of ethanol and biodiesel – can apply for financial assistance through the Iowa Renewable Fuels Infrastructure Program. Applications must be received by April 30, 2013 and will be considered at the May 14th meeting of the Iowa Renewable Fuels Infrastructure Board, who approves all applications.

E15 is Now Available“Iowa is the national leader in production of ethanol and biodiesel and this program is designed to help make sure customers have access to these clean, homegrown renewable energy choices,” said Iowa Secretary of Agriculture Bill Northey. “This program demonstrates the long-term commitment by Iowa to renewable fuels and I encourage both large and small fuel retailers to consider applying for assistance.”

The program has cost-share funds available to cover up to 70 percent of the cost of converting old equipment, such as underground tanks or retail pumps, to new equipment designed to handle higher blends of ethanol and biodiesel. Grants to retail distributors are limited to a maximum of $50,000 per project and retailers must commit to selling renewable fuels for at least five years. Smaller grants of $30,000 are available for those only making a three year commitment.

Wholesale fuel distributors are also eligible for grants to offset the cost of new bulk storage and distribution equipment that can be used with higher blends of renewable fuels. Up to $100,000 is available, but requires a 50 percent match by company and a five-year commitment to handling renewable fuels.

The Iowa Legislature provided $3 million to the program for fiscal 2013 and nearly $1 million remains for this final application period. Funds not awarded this year can be carried into the next fiscal year. More information about the program, including guidelines and applications form are available here. In addition, the Iowa Renewable Fuels Association is also able to assist those interested selling higher blends of ethanol and biodiesel.

DOE to Fund Three Bioenergy Research Centers

DOE_logo1Three labs working on advanced, next-generation biofuels will get funding for another five years … of course, if Congress funds it. The U.S. Department of Energy announced the intent to fund the BioEnergy Research Center (BESC) led by Oak Ridge National Laboratory, the Great Lakes Bioenergy Research Center (GLBRC) led by the University of Wisconsin-Madison in partnership with Michigan State University, and the Joint BioEnergy Institute (JBEI) led by Lawrence Berkeley National Laboratory. All three were part of the DOE’s 2007 program to accelerate fundamental research breakthroughs:

“Developing the next generation of American biofuels will enhance our national energy security, expand the domestic biofuels industry, and produce new clean energy jobs. It will help America’s farmers and create vast new opportunities for wealth creation in rural communities,” said Energy Secretary Steven Chu. “By investing in innovative approaches and technologies at our Bioenergy Research Centers, we can continue to move the biofuels industry forward and grow our economy while reducing our reliance on foreign oil.”

In five years of operation, the Centers have produced more than 1,100 peer-reviewed publications and over 400 invention disclosures and/or patent applications. Among the breakthroughs the Centers have achieved are new approaches for engineering non-food crops for biofuel production; reengineering of microbes to produce advanced biofuels such as “green” gasoline, diesel, and jet fuel precursors from biomass; and the development of methods to grow non-food biofuel crops on marginal lands so as not to compete with food production.

Each of the centers is expected to be funded at $25 million per year. The next five years are expected to emphasize work on new methods and discoveries, as well as developing new lines of research.

Ethanol’s Enviro Benefits Keep on Growing

FossilThe National Corn Growers Association (NCGA) has developed a comparison of the environmental impacts of ethanol and petroleum as transportation fuels. Using scientific data, the side-by-side comparison examines a wide array of environmental factors. Most know today that petroleum, made from oil, is not “renewable”. Created over millions of years, it will takes thousands of years for more oil to be developed. However, ethanol made from corn is renewable, with each new crop, a new crop of ethanol can be produced.

Here are some other key highlights of NCGA’s comparison:

  • Ethanol is a tiny single substance that is non-toxic. Petroleum is a mixture of hundreds of different molecules and is toxic to biological organisms.
  • Corn used for ethanol in the United States is grown on approximately five percent of our nation’s cropland. For perspective, ethanol production uses less than three percent of all grain crops grown over the entire world. Petroleum is mined across the entire globe and must be extracted from deep underground. In order to collect petroleum, landscape fragmentation and the generation of toxic, hazardous and potentially radioactive waste streams often occurs.
  • Most corn-to-ethanol production facilities are located within 15 miles of the farms where the crop was produced. Since petroleum extraction happens across the globe wherever deposits can be found, it must be shipped to a facility where it can be refined.
  • Based on the results of scientific testing, the EPA considers corn starch ethanol as producing 23 percent less greenhouse gas emissions compared to making and burning gasoline from petroleum. Recent evidence shows multiple ways of producing ethanol with 50 percent or less GHG compared to gasoline production.
  • The U.S. oil and gas industry generates more solid and liquid waste than municipal, agricultural, mining and other sources combined.

NCGA says that looking at how the production of these fuels compares side-by-side, it becomes evident that ethanol is truly renewable and produced in a greener manner than its fossil fuel counterparts. Where petroleum creates reliance upon a fuel pulled from the ground and imported from abroad, ethanol improves our environment while increasing our national and energy security. Click here for the full comparison.

Popke’s in Rock Rapids, IA Joins the E15 Club

Popke’s, Inc. in Rock Rapids, Iowa has joined the E15 “club” now joining four other stations in Iowa to sell the 15 percent ethanol, 85 percent gasoline fuel blend.

Greg Popke Photo- Sioux City Journal Dave Dreeszen“My business believes in supporting Iowa’s farmers and growing our local economy,” said Popke’s, Inc. owner Greg Popke. “American-made E15 is the next step in securing our independence from foreign oil. The citizens of Rock Rapids have been asking for E15 and are excited to have ready access to this cleaner, less-expensive fuel.”

Popke’s, Inc. is located in Northwest Iowa at the corner of Highway 9 and Highway 75 in Rock Rapids. E15 can be used by all 2001 and newer passenger vehicles and all flexible fuel vehicles (FFVs). Those vehicles account for 85 percent of fuel use in the United States. In order to offer E15 to the non-FFVs, a retailer must register with the EPA. The Iowa Renewable Fuels Association (IRFA) works with retailers to ensure they comply with all federal and state E15 regulations.

“We hope more retailers will continue to incorporate E15 into their business models,” added IRFA Managing Director Lucy Norton. “Offering E15 is a win-win as it provides economic value to both retailers and consumers.”

Retailers interested in installing a blender pump to offer E15, E85, and other ethanol blends can apply for a grant from the Iowa Department of Agriculture. The IRFA provides assistance in the application process. Click here for more information.

FREE EPA Rulemaking Seminar

EcoEngineers is offering a FREE webinar for renewable fuel producers to offer clear direction for successfully implementing policies currently in process by the Environmental Protection Agency (EPA). The informational webinar on QAP A AND B and EPA’S Notice of Proposed Rulemaking (NPRM) is set for Wednesday, April 3, 2013 from 1-2 pm CST. During this session, EcoEngineers Partner and Chief Engineer Jim Ramm, PE, and Managing Partner Shashi Menon will discuss the Notice of Proposed Rulemaking as it currently stands, including updates from the recent public comments hearing in Washington.

EcoEngineers LogoIn the webinar, (register here) EcoEngineers will be outlining their QAP program, making policy recommendations, collecting feedback from the producer community and recommending steps for producers to take in order to have their voice heard at the EPA.

“There remain serious questions and concerns about the path ahead regarding the requirements of a QAP and related costs. It is important that producers understand the nature of the changes and have a voice in policy formation,” said Jim Ramm.

The USEPA, in a Notice of Proposed Rulemaking, has outlined two Quality Assurance Programs, QAP A and B. While both programs offer significant upsides, including preferred purchase of QAP A and B RINs by marketers and Obligated Parties, there are also challenges including the potential variations in scope and costs associated with the ongoing rulemaking process.

At EPA’s request, EcoEngineers has provided input into the quality assurance process, based on conversations with many producers, and testified at the public hearing in Washington.

“To our current customers, we will continue to offer the leadership you have come to expect in effecting a smooth, seamless transition to EPA’s comprehensive approach to RIN quality assurance,” added Ramm, “To those still weighing their options, we offer our support in helping you find the best solution for your unique situation.”

Algae.Tec Using Shipping Containers to Grow Algae

Algaetecbioreactor1When it comes to alternatives to some of the more conventional sources of oils for biofuels, many companies are looking to go green. And some, such as the folks at Algae.Tec, are looking to green shipping containers to grow a literal green feedstock.

“What we wanted was a significant bulk outcome, in other words fuels and possibly food, producing the algae for cents on the liter, where many of the pond solutions [cost] dollars per liter to make it work,” explains Roger Stroud, the Executive Chairman of the Australia-based company. He says Algae.Tec’s enclosed photo-bioreactor contained in 40-foot shipping containers is a way to produce the green pond scum for those pennies of what it costs in open-air ponds. And they’re looking at producing biodiesel, jet fuels, and even food sources from the algae grown. But Stroud says they are still working on the commercialization process with demonstration projects just south of Sydney, as well as research and development in Atlanta, Georgia. “We’re confident in the outcome.”

rogerstroud1So why is Stroud so confident their system will be successful? Well, besides the testing and work they’ve done, he’s Australian, and that means he’s used to having to do big things against sometimes great odds. “Although [Australia] is a large continent, we’ve got [a small population]. So, we tend to be on the outside looking in, where in the U.S., you tend to be on the inside looking out,” and Australians have to look more to the world economy. That’s why Algae.Tec has worked vigorously to network globally. Projects pending in Brazil and Texas, as well as one in New South Wales, point to that global reach. Plus, he’s encouraged by the Americans’ commitment to algae and biofuels. It all comes down to the Australian, and maybe the algae industry’s, way of making the best of the opportunity that comes your way.

“We’re focused on our task, and we believe we can achieve a profitable outcome, given time.”

Listen to Joanna’s interview with Roger here: Interview with Roger Stroud, Algae.Tec