Domestic Fuel

Agriculture Secretary Tom Vilsack is hosting a media roundtable with aviation business leaders today to discuss the important role of American-produced biofuels in the civilian aircraft and airline industry, and in the military.

Participants in the discussion with Vilsack will include John Tracy with The Boeing Company and Billy Glover of Boeing Commercial Airplanes; Alex Marren with United Continental Holdings and Jim Rekoske, Vice President and General Manager of Renewable Energy & Chemicals for Honeywell.

In January, 2010, Vilsack and Navy Secretary Ray Mabus signed a Memorandum of Understanding (MOU) to encourage development of advanced biofuels to be used in the Great Green Fleet that will demo in 2012. USDA has also signed a Memorandum of Understanding with the Federal Aviation Administration (FAA) to help the commercial airline industry utilize biofuels as jet fuel. USDA has also invested significantly in research projects to advance the aviation biofuels industry.

The roundtable discussion is being held this afternoon at 12:45 central at Boeing Corporate Offices in Chicago.

The largest government purchase of biofuels for military application was announced today.

U.S. Navy Secretary Ray Mabus and U.S. Department of Agriculture Secretary Tom Vilsack jointly announced that the Defense Logistics Agency (DLA) signed a contract to purchase 450,000 gallons of advanced drop-in biofuel.

The biofuel to be purchased is made from a blend of non-food waste (used cooking oil) from the Louisiana-based Dynamic Fuels, LLC, a joint-venture of Tyson Foods, Inc., and Syntroleum Corporation, and algae, produced by Solazyme. The fuel will be used in the U.S. Navy’s demonstration of a Green Strike Group in the summer of 2012 during the Rim of the Pacific Exercise (RIMPAC), the world’s largest international maritime exercise.

“The Navy has always led the nation in transforming the way we use energy, not because it is popular, but because it makes us better war fighters,” stated Secretary Mabus. “This unprecedented fuel purchase demonstrates the Obama Administration’s commitment to seeking energy security and energy independence by diversifying our energy supply.”

The biofuel will be mixed with aviation gas or marine diesel fuel for use in the Green Strike Group demonstration.

Read more from USDA and listen to press conference of the announcement.

The U.S. Department of Agriculture has announced a new pilot program of insurance for camelina beginning with the 2012 crop year.

According to a release from USDA, “Camelina is an oilseed crop with the potential to create new renewable energy markets in the United States, generate rural jobs here at home, and decrease America’s dependence on foreign oil. The new pilot program will be available in selected counties in Montana and North Dakota for the 2012 crop year, with a sales closing date of February 1, 2012.”

Camelina, an oilseed, is a rotation crop for wheat that can be established on marginally productive land. It is an annual, short season plant. Biofuel from camelina is an ideal jet fuel substitute. USDA’s Agricultural Research Service (ARS) scientists have long-term studies underway to examine ways to use camelina as a bioenergy crop for producing jet fuel for the military and the aviation industry. In addition, earlier this year USDA announced two Biomass Crop Assistance Program (BCAP) project areas devoted to developing camelina as biofuel in several states, including Montana. USDA is also part of several partnerships to develop oilseeds and native and perennial grasses as a biofuels.

Find out details of the program from USDA.

French energy company Total and California-based renewable products firm Amyris have announced a joint venture to develop, produce and commercialize a range of renewable fuels and products.

The two companies agreed to expand their ongoing research and development collaboration to accelerate the deployment of Biofene® and develop renewable diesel based on this molecule produced from plant sugars. The program launched in 2010 aims to develop the necessary stages to bring the next generation renewable fuels to market at commercial scale. Total has committed to contribute $105 million in funding for an existing $180 million program.

The 50-50 joint venture company formed between Amyris and Total will have exclusive rights to produce and market renewable diesel and jet fuel worldwide, as well as non-exclusive rights to other renewable products such as drilling fluids, solvents, polymers and specific biolubricants. The venture aims to begin operations in the first quarter of 2012.

Read more from Total press release.

USDA has issued a loan guarantee that will allow a biofuels firm to construct a facility in New Mexico to produce “green crude” oil from algae which can be refined into transportation fuel.

The loan is going to Sapphire Energy, which intends to design, build and operate a $135 million integrated algal biorefinery (IABR) in Columbus, N.M., for the production of advanced biofuel that is a “drop-in” replacement for petroleum derived diesel and jet fuel. The IABR will be capable of producing 100 barrels of refined algal oil per day, equivalent to at least one million gallons per year. The oil will be shipped to the United States Gulf Coast to be refined by Sapphire’s refinery partner, Dynamic Fuels, located in Geismar, La.

The funding is provided through USDA’s Biorefinery Assistance Program. On December 3, 2009, USDA issued a conditional commitment for an 80 percent guarantee on a $54.5 million loan. The loan closing and issuance of the Loan Note Guarantee for this project took place on October 21, 2011.

Alaska Airlines has gone green with commercial flights on biofuels.

Starting this week, Alaska Airlines began 75 commercial passenger flights in the United States powered by biofuel made from used cooking oil.

Two maiden biofuel-powered flights left Seattle November 9 bound for Washington, D.C., and Portland, Ore. Alaska Airlines and its sister carrier, Horizon Air, will continue to operate select flights between Seattle and the two cities over the next few weeks using a 20 percent blend of sustainable biofuel.

“This is a historic week for U.S. aviation. The 75 flights that Alaska Airlines and Horizon Air will fly over the next few weeks reflect our longstanding commitment to environmental responsibility and our belief that sustainable biofuels are key to aviation’s future,” Alaska Air Group Chairman and CEO Bill Ayer said. “Commercial airplanes are equipped and ready for biofuels. They will enable us to fly cleaner, foster job growth in a new industry, and can insulate airlines from the volatile price swings of conventional fuel to help make air travel more economical. What we need is an adequate, affordable and sustainable supply. To the biofuels industry, we say: If you build it, we will buy it.”

Alaska Air Group estimates the 20 percent certified biofuel blend it is using for the 75 flights will reduce greenhouse gas emissions by an estimated 10 percent, or 134 metric tons, the equivalent of taking 26 cars off the road for a year. If the company powered all of its flights with a 20 percent biofuel blend for one year, the annual emissions savings would represent the equivalent of taking nearly 64,000 cars off the road or providing electricity to 28,000 homes.

The friendly skies of United Airlines are now friendlier for the environment as subsidiary Continental flew the first commercial flight on advanced biofuel yesterday.

“United is taking a significant step forward to advance the use of environmentally responsible and cost-efficient alternative fuels,” said Pete McDonald, United’s executive vice president and chief operations officer. “Sustainable biofuels, produced on a large scale at an economically viable price, can one day play a meaningful role in powering everyone’s trip on an airline.”

A Boeing 737-800 made the historic flight from Houston to Chicago Monday on an algae-derived renewable jet fuel made by Solazyme. The plane was fueled with 40 percent Solajet™ and 60 percent petroleum-derived jet fuel. United also signed a letter of intent with Solazyme to purchase up to 20 million gallons per year of renewable jet fuel starting in 2014.

“Looking at United, a company that understands the sustainability of tomorrow means environmental responsibility today, we see a true pioneer in the future of flight,” said Jonathan Wolfson, Solazyme’s CEO. “Solazyme is deeply committed to commercializing our renewable oil production technology, and we’re excited to be partnering with United on the first U.S. commercial biofuel flight.”

Solajet is made using microbial algae that grow in fermenters by feeding on sugars from plants. According to United, the biofuel meets the ASTM International specification for bio-derived aviation fuels, approved in July 2011 and referred to as “Hydroprocessed Esters and Fatty Acids” (HEFA) fuel. “HEFA fuels underwent rigorous testing and review by engine and airframe manufacturers, the U.S. military, the FAA and airlines. Solajet(TM), powering this United flight, met the certification requirements established by the ASTM and approved by the FAA.”

Read more from United.

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.

Advanced biofuels can be commercialized rapidly for military use, on military timelines, with adequate support and coordination of efforts by the U.S. Departments of Agriculture, Defense and Energy, according to comments submitted by the Biotechnology Industry Organization (BIO) to the Air Force’s Request for Information on the commercial status and market for advanced drop-in biofuels.

“The U.S. military and the nation as a whole face a significant national security threat from U.S. dependence on foreign sources of energy and ongoing price volatility. The military requires access to adequate fuel supplies in strategic locations, and biorefineries producing advanced biofuels from multiple feedstocks represent perhaps the best option for meeting this military need,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.

Erickson noted that while individual advanced biofuel producers have achieved milestones toward commercial development of a diverse array of feedstock and technology combinations, full commercialization has been limited by the severely constrained market for private capital. “Coordination of efforts by the USDA, DOE and DOD to address the market challenges could significantly accelerate production of the volumes necessary to meet the energy security needs of the U.S. military,” Erickson said. “Some advanced biofuel companies already have worked with the Department of Defense (DOD) or with commercial airlines to test and certify advanced biofuel/petroleum blends, and more are poised to do so.”

Louisiana State University is getting $17 million from USDA to study how to turn sugar cane and sorghum into biofuels.

The project is one of the five announced yesterday by Agriculture Secretary Tom Vilsack, focused on developing aviation biofuels from various types of biomass. “We have an incredible opportunity to create thousands of new jobs and drive economic development in rural communities across America by continuing to build the framework for a competitively-priced, American-made biofuels industry,” said Vilsack. “Over the past two years, USDA has worked to help our nation develop a national biofuels economy that continues to help us out-innovate and out-compete the rest of the world while moving our nation toward a clean energy economy.”

Through new and existing industrial partnerships, this project will use energy cane and sorghum to help reinvigorate the Louisiana sugar and chemical industries.

This new project is in addition to a study funded this year at LSU by the Sorghum Checkoff to demonstrate sweet sorghum’s potential for significant yield in a relatively short growing period and its ability to be a steady feedstock supply for biorefineries through improved production management.

“Results from these studies would provide information producers need to most effectively plant and harvest sweet sorghum,” said Kun Jun Han, LSU sweet sorghum specialist. “It would also be useful to biofuel industry personnel when considering site locations, as well as local community leaders working to encourage biorefineries to locate in their area.”

From mid-March to May 2011, sweet sorghum was planted at two-week intervals and again during June and July. Some sweet sorghum will be harvested in the early seedhead development stage, which should allow for multiple harvests per year. Meanwhile, other sorghum plants will be harvested at the more traditional stage of late seed development. Results from both harvests will be studied to find which is most effective.

Read more.

At the Seattle-Tacoma Airport on Wednesday, Agriculture Secretary Tom Vilsack announced five major agricultural research projects “aimed at developing regional, renewable energy markets, generating rural jobs, and decreasing America’s dependence on foreign oil.”

Altogether, the five-year program will deliver more than $136 million in research and development grants to public and private sector partners in 22 states. University partners from the states of Washington, Louisiana, Tennessee, and Iowa will lead the projects, which focus in part on developing aviation biofuels from tall grasses, crop residues and forest resources. Vilsack made the announcement with partners from private industry, research institutions, and the biofuels industry.

Among the five projects are two $40 million grants to Washington State University and the University of Washington to study the feasibility of producing jet biofuel from woody feedstocks in the Pacific Northwest. “This is a significant investment in biofuel production research, and the work at both Washington State University and the University of Washington will help ensure that Washington state remains a national leader in renewable energy research and development,” said U.S. Senator Patty Murray (D-WA).

Senator Maria Cantwell added, “The investment announced today will leverage the resources of our entire region, helping build up a biofuels supply chain and boost clean energy job growth across the nation.”

The WSU project will focus on converting closed timber mills into bioenergy development centers to develop a regional source of renewable aviation fuel for the Sea-Tac Airport. Weyerhaeuser Company is a participant in the WSU project as part of the Northwest Advanced Renewables Alliance. As a subcontractor to the WSU-led grant, Weyerhaeuser will focus on determining the feasibility of sustainable production of woody feedstocks for use in biofuel and value-added products and exploring ways to convert woody biomass lignin components into value-added bio products.

“This region has a wealth of research capability and knowledge,” said Sea-Tac Airport Managing Director Mark Reis. “We recognize in order for us to reduce greenhouse gas emissions, we cannot do it without aviation biofuels.”

Read more here.

It seems like it won’t be long before aircraft flying with biofuels is an everyday occurrence. The latest test flights were conducted by Embraer and GE flying a EMBRAER 170 jet from the Company’s Gavião Peixoto facilities. The purpose of the tests were to benchmark the operational characteristics of the airplane and its GE CF34-8 engines when flying with a HEFA fuel – a biofuel blend comprised of hydro-processed esters and fatty acids.

The 50 percent HEFA biojet fuel blend, derived from camelina, has received recent approval by ASTM. As a result, Embraer said they are stepping up their efforts to develop a broader range of sustainable biofuels for aviation. To date, the tests of the biojet blend have been successful and future tests are planned.

“We have a strong and longstanding commitment to developing efficient and environmentally responsible products,” said Mauro Kern, Embraer Executive Vice President of Engineering and Technology. “This series of tests, and their very positive results, gives us a lot of new information to continue our sustainability program as it relates to future products. Supporting the development and deployment of sustainable aviation biofuels is one of the industry’s top priorities, and we are firmly engaged in that effort.”

Next steps for the two partners include testing other feedstocks and production pathways for production of the biofuels.

“This could encompass a broad range of pursuits, from testing of additional fuel production pathways and feedstocks, to potentially increasing HEFA blend levels,” added Laurent Rouaud, Chief Marketing Office, GE Aviation. “These flights have also demonstrated that the aircraft and engine manufacturers are also interested in limiting net carbon emissions from their ongoing product development activities, and in working with producers to establish early production demand for the benefit of the entire aviation enterprise.”

The Blue Angels, the U.S. Navy Flight Demonstration Squadron, performed over the Labor Day weekend using a biofuel blend at the Naval Air Station (NAS) Patuxent River Air Expo. All six F/A-18 legacy Hornets were powered with a 50-50 blend of conventional JP-5 jet fuel and a camelina-based biofuel.

“Changing the kinds of fuels we use and the way we use them is critical to assuring the Navy and Marine Corps remain the most formidable expeditionary fighting force the world has ever known,” said Secretary of the Navy, Ray Mabus in a press statement leading up to the air show. “The Department of the Navy will be taking another visible step toward testing biofuel in our aircraft when all six of the Blue Angels perform using the same 50/50 blend of drop-in biofuel we’ve used in so many of our other aircraft.”

The event marked the first time an entire unit has flown on a biofuel mix.

Capt. Greg McWherter, Blue Angels commanding officer/flight leader said of the show, “As public representatives of the U.S. Navy and Marine Corps, the Blue Angels take pride in leading the country’s efforts to reduce fossil fuel consumption and increase our energy security.

McWherter, who says there is no discernible differences from the cockpit, stressed that the goal of the program was to demonstrate that there is no difference in performance between the biofuel blend and standard-petroleum-based JP-5.

In another semi-related story, the USDA is looking for Eastern Washington farmers to grow camelina as part of the Biomass Crop Assistance Program (BCAP). The program is designed to incent growers to grow emerging crops for biofuels.

The U.S. Navy has successfully flown a T-45 training aircraft using biofuels at the Naval Air Station (NAS) in Patuxent River, Maryland. The flight was completed by the “Salty Dogs” of Air Test and Evaluation Squadron (VX) 23 flying on biofuel mixture of petroleum-based JP-5 jet fuel and plant-based camelina. The T-45 “Goshawk” is a tandem-seat aircraft used by the Navy and Marine Corps to train pilots on carrier and tactical mission operations.

“This successful test flight brings us a step closer to meeting the Navy’s energy security goals,” said Vice Adm. David Architzel, commander, Naval Air Systems Command. “My congratulations to the Navy fuels team here at NAVAIR for playing an instrumental role in proving the viability of biofuels to power naval aircraft.”

The T-45 is the fifth Navy aircraft to successfully test the biofuel blend. Previous Previous aircraft tested include the F/18 E/F, MH-60S, F/A-18 D, and most recently, the MV-22. The move to biofuels is being driven by Navy Secretary Ray Mabus’ goal is to cut the Navy’s oil usage in half by 2025.

“This test of the T-45 with a 50/50 blend of biofuel represents another significant milestone in the long list of detailed flight test and demonstrations of the F-18 Super Hornet, the MH-60S, and the V-22,” said Rear Adm. Phil Cullom, Director of the Chief of Naval Operations Energy and Environmental Readiness Division. “Our commitment to the aggressive test schedule for drop-in replacement fuels for JP-5 and F-76 keep us on pace for the 2012 demonstration and 2016 deployment of the Great Green Fleet.”

Additional biofuel test flights are scheduled for later this year.

The Obama Administration today announced a partnership between the private sector and the U.S. Departments of Agriculture, Energy and Navy to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation.

President Obama made the announcement during a stop in Iowa, at the same time the three department secretaries held a telephone conference call with the press. Secretary of Agriculture Tom Vilsack, Secretary of Energy Steven Chu, and Secretary of the Navy Ray Mabus announced that they have developed a plan to jointly construct or retrofit several drop-in biofuel plants and refineries.

“America’s long-term national security depends upon a commercially viable domestic biofuels market that will benefit taxpayers while simultaneously giving Sailors and Marines tactical and strategic advantages,” said Navy Secretary Ray Mabus. “Today’s announcement not only leverages our home grown fuel sources to support our national security, but it also helps advance the biofuels market, which ultimately brings down the cost of biofuels for everyone.”

“These pioneer plants will demonstrate advanced technologies to produce infrastructure-compatible, drop-in renewable fuels from America’s abundant biomass resources,” said Energy Secretary Chu. “It will support development of a new, rural-focused industry that will replace imported crude oil with secure, renewable fuels made here in the U.S.”

The joint plan calls for the three Departments to invest a total of up to $510 million with at least a one to one match from private industry in an effort to reduce U.S. reliance on foreign oil and create jobs while positioning American companies and farmers to be global leaders in advanced biofuels production.

Listen to the entire press conference here: Navy, DOE, USDA Press Conference