Domestic Fuel

The House Agriculture Committee passed the Federal Agriculture Reform and Risk Management Act (FARRM) of 2013 by a vote of 36 to 10 late Wednesday night. While the bill does contain an energy title, an amendment to make funding of energy programs mandatory was defeated.

“We thank the entire committee for reauthorizing the programs, but mandatory funding is vital to their continued success. We look forward to working with all Congressmembers and Senators to ensure that a Farm Bill gets enacted this year that includes mandatory funding for these important programs,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.

The Senate version does contain mandatory funding for renewable energy and energy efficiency programs. “We thank the members of the Senate Agriculture Committee, especially Senator Amy Klobuchar for increasing the funding for the Renewable Energy for America Program, and Senators Joe Donnelly and Pat Roberts for a bipartisan proposal to improve risk management options for biomass crops,” said Lloyd Ritter, co-director of the Agriculture Energy Coalition. “We look forward to working with them to ensure the continued success of Farm Bill energy programs.”

“Funded farm and energy policy is better: it puts those benefits into action. On that score, we’re concerned the House bill missed the mark,” Adam Monroe, Americas Regional President of Novozymes, said of the committee bills. “While we appreciate the House Agriculture Committee reauthorizing the biomass programs, we urge them to follow the Senate committee’s lead and support a strong, fully-funded energy title.”

The Senate bill is expected to go to the floor next week while the House bill is slated for next month.

The University of Wyoming has signed a deal that gets it into the algal biomass industry. The school agreed to give PlanktOMICS Algae Bioservices, run by a pair of university researchers, space and support to research how to develop patent-pending processes in exchange for a cut of the profits down the road:

PlanktOMICS principal partners Stephen Herbert, a UW professor of plant sciences, and Levi Lowder, a UW doctoral candidate in molecular and cellular life sciences, will focus on serving small companies that need to solve problems relative to their algae needs.

“Our services are tailored to companies that want to outsource their biological studies or biological research,” adds Lowder, who is PlanktOMICS’ chief technology officer. “We don’t really produce the end products. We do the biology. You have to know how to grow algae. That’s where we come in, to figure out how to farm algae on a large scale (for other companies).”

PlanktOMICS is working on technologies to control unwanted algae and other microbes in algae ponds, just like corn and soybean farmers control weeds, as well as technology to lower the cost of harvesting of algal biomass, among others. Last year, Lowder’s team won the university’s John P. Ellbogen $30K Entrepreneurship Competition, getting $12,500 and one year of free rent to further develop the company at the Wyoming Technology Business Center (WTBC), a business incubator at the school. Herbert and Lowder say they already have two clients lined up, one in the algal nutritional supplement business for more than 30 years. The developments could ultimately lead to algae-biodiesel projects.

The Dynamic Fuels renewable diesel plant in Geismar, La., idled late last year, soon could be reopened. Biomass Magazine reports that Syntroleum, which has the animal fat and yellow grease renewable diesel plant as a joint venture with Tyson Foods, expects to start up operations once again this summer:

During the call, Gary Roth, president and CEO of Syntroleum, said the company ordered a new catalyst for the plant in February. It is scheduled to for delivery in late June. According to Roth, the new catalyst is expected to increase yields from an average of 80 percent to an average of 88 percent. As a result of the new catalyst, Roth said revenues per gallon would be expected increase from $4.09 to $4.55 per gallon, which would result in a $13 million revenue increase.

Rather than interrupting the feedstock chain of the plant while it is operating, Roth said the company believes it will be better to defer operations until the new catalyst is installed.

Syntroleum officials say the expected stability in D4 biomass-based diesel Renewable Identification Numbers (RINs) through this year and 2014 should help the company’s bottom line. The retroactive reinstatement of the biodiesel tax credit also helped profit margins to make the plant viable once again.

The U.S. Department of Energy (DOE) has announced $18 million in investments for four pilot-scale biorefineries that will test renewable biofuels that will meet military specifications for jet fuel, shipboard diesel, cars and trucks. These projects build on the Obama Administration’s broader efforts to advance biofuels technologies to continue to bring down costs, improve performance and identify effective, non-food feedstocks and processing techniques.

The projects selected for negotiation are: Frontline Bioenergy LLC (up to $4.2 million based in Ames, Iowa); Cobalt Technologies (up to $2.5 million based in Mountain View, California); Mercurius Biorefining, Inc. (up to $4.6 million based in Ferndale, Washington) and BioProcess Algae (up to $6.4 million based in Shenandoah, Iowa).

“Advanced biofuels are an important part of President Obama’s all-of-the-above strategy to reduce America’s dependence on foreign oil, improve our energy security and protect our air and water,” said Energy Secretary Steven Chu. “The innovative biorefinery projects announced today mark an important step toward producing fuels for our American military and the civil aviation industry from renewable resources found right here in the United States.”

Chu says domestic oil and gas production has increased each year the President has been in office. Simultaneously the administration is taking additional steps to reduce America’s reliance on foreign oil. As part of this effort, the Department is helping to speed the development of hydrocarbon-based biofuels that are more compatible with today’s infrastructure and engines, including heavy vehicles and other applications. According to the Energy Department’s Billion Ton Study, advanced biofuels have the potential to displace approximately one-third of the nation’s current transportation petroleum use.

The pilot-scale biorefinery projects selected today will use a variety of non-food biomass feedstocks, waste-based materials, and algae in innovative conversion processes to produce biofuels that meet military specifications for jet fuel and diesel. The projects will demonstrate technologies to cost-effectively convert biomass into advanced drop-in biofuels and assist these organizations to scale up the processes to commercial levels. Recipients are required to contribute a minimum of 50 percent matching funds for these projects.

If 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 Energy Systems Laboratory (ESL) on the Idaho Falls Research and Education Campus has been official dedicated by the Idaho National Laboratory (INL). John Grossenbacher, Battelle Energy Alliance president and INL laboratory director, hosted special guests including elected officials and U.S. Department of Energy representatives, U.S. Rep. Mike Simpson of Idaho and Jeff Sayer, chairman of Idaho’s Leadership in Nuclear Energy (LINE) Commission and Director of Idaho’s Department of Commerce.

The new facility has 54,000 square feet of reconfigurable laboratory research space, plus a large laboratory for biomass characterization and is LEED Gold certified.

“Our new Energy Systems Laboratory adds significant research capabilities that will contribute to the timely, material and efficient transformation of America’s energy systems and infrastructure,” said Steve Aumeier, Energy and Environment associate laboratory director, who is responsible for research in the new ESL. “The impact of research at ESL is to enhance the nation’s global competitiveness by advancing energy security through integration of clean energy systems, advancement of energy storage technologies, and biomass design and analysis,” he added.

ESL contributes significantly to efforts to integrate low-carbon energy onto America’s electrical grid, reducing the nation’s dependence on foreign-sourced fossil fuels by researching bioenergy and electrical vehicle performances, and increasing energy efficiency in manufacturing, critical materials supplies and used nuclear fuel systems engineering.

Primus Green Energy is providing financial support to engineers at Princeton University to support research on synthetic fuels including assessments of various gas-to-liquids (GTL) technologies for sustainability and economic viability. Primus’ STG+ technology converts syngas derived from natural gas and/or biomass into drop-in high-octane gasoline and jet fuel with industry-leading process efficiencies. According to the company, the fuels produced from the Primus STG+ technology are very low in sulfur and benzene compared to fuels produced from petroleum, and they can be used directly in vehicle engines as a component of standard fuel formulas and transported via the existing fuel delivery infrastructure.

“Primus is always looking for opportunities to support academic research on issues that impact our business and our commercialization efforts,” said George Boyajian, vice president of business development at Primus Green Energy. “Chris Floudas is one of the premier experts in the field of gas-to-liquids technologies, and we believe that his research will play a key role in identifying important developments and financial differentiators among GTL technologies, especially as they relate to our STG+ technology.”

The work at Princeton University will be conducted in the laboratories of Professor Christodoulos Floudas, Ph.D. Floudas is an expert in chemical process systems engineering, with a specific emphasis on process synthesis and design, interaction of process design and control and process operations.

“Primus’ STG+ platform is a next-generation gas-to-liquids technology that has the potential to have a significant impact on process efficiency standards and economic viability in the alternative fuels industry,” said Floudas, Princeton’s Stephen C. Macaleer ’63 Professor in Engineering and Applied Science. “As part of my research, I will be comparing STG+ to other leading GTL platforms against a variety of metrics, including financial, technical and sustainability.”

Primus Green Energy estimates that the cost of production for its fuels will be competitive with petroleum-based fuels when crude oil is trading at $65 per barrel (oil is currently trading at approximately $95 per barrel). The company is nearing completion of its demonstration plant, which is expected to reach mechanical completion in Q2 2013, and expects to break ground on its first commercial plant in the first half of 2014.

A new portable biomass power plant is gaining international interest. Recently, 30 visitors from as far away as Guatemala visited the Thomas M. Brooks Forest Products Center to see a demonstration of the Department of Sustainable Biomaterials‘ technology. About the size of a Mini Cooper turned upright, the biomass power system generates electricity by burning wood chips, corncobs, manure, and other agricultural wastes. In demonstrations, Henry Quesada-Pineda, assistant professor of sustainable biomaterials in the College of Natural Resources and Environment, powered shop tools with the unit.

“There is increasing interest in the community and around the world, especially in off-grid situations, to learn more about how biomass energy production can be integrated into small-scale systems,” said Quesada-Pineda, a Virginia Cooperative Extension specialist who is also assistant director of Virginia Tech’s Center for Forest Products Business, as he fielded questions from international development consultants and forest-products industry managers during the demonstration.

The unit’s generator is powered by a three-cylinder combustion engine using syngas — a combination of nitrogen, carbon monoxide, and hydrogen produced by biomass reacting with steam at temperatures over 750 C. Virginia Tech’s unit, which produces 1 kilowatt hour for every 1.2 kilograms of biomass, is capable of generating 10 kilowatts, enough to power 100 100-watt light bulbs.

This gasification process itself has been in use for years, Quesada-Pineda says. It was used in the mid-1800s to produce gas for streetlights and cooking, before being replaced by natural gas. Wood gasifiers powered thousands of European motor vehicles during World War II fuel shortages. Today, biomass power plants represent the nation’s second largest source of renewable energy in terms of capacity, after hydroelectric.

The unit costs around $18,000, and so is not a cost-effective investment for most U.S. companies with access to electricity, Quesada-Pineda says, but his department’s research will seek to determine the optimal use for this renewable energy source. In addition to research, the biomass power unit will be used to support teaching efforts, giving students the opportunity to familiarize themselves with this emerging technology, and to power entrepreneurial projects of the department’s student-run Wood Enterprise Institute.

The Bioprocess Pilot Facility B.V. (BPF), a scale-up plant located on the Biotech Campus Delft, is attracting the right kind of attention. The “first green Minister-President” Mr. Kretschmann, the Minister-President of Baden-Württemberg, one of the federal states of Germany, visited BPF’s facility to learn about their technology and contribution to the country’s bio-based economy. After his visit, Mr Kretschmann said that it is good that companies and knowledge institutions have the possibility to carry out scale-up research in a facility that is unique in its experience with this type of research.

In the heart of Wisconsin, a project is underway to produce energy from a resource that is in little danger of running low: cow manure, or “brown gold.” Thanks to a $7 million grant from the United States Department of Agriculture (USDA) Biomass Research and Development Initiative (BRDI), the University of Wisconsin-Madison and several state companies have formed a consortium to pilot the conversion of dairy farm manure into useful product streams—a project that is expected to have significant environmental and economic benefits.

The Accelerated Renewable Energy (ARE) project is already in progress at the 5,000-cow Maple Leaf Dairy in Manitowoc County, where animal waste is separated into different streams, or fractions, of processed manure. After small plant fibers in the manure are separated out and anaerobically digested to create biogas, liquids from the digestion process are used to fertilize crops, while leftover solids can be converted into useful chemicals and bio-plastics. Larger plant fibers, on the other hand, make great animal bedding and mulch, as well as a starting material for ethanol fermentation.

WBI director and Biological Systems Engineering (BSE) faculty member Troy Runge, who is a co-investigator of the project, is interested in supporting a renewable energy economy through the development of value-added products from biomass. Runge’s lab is analyzing the ARE project’s separation techniques to improve their efficiency and economic performance.

“We are performing many of the same separations that occur on the farm, but in the controlled environment of the lab to both measure and optimize the system,” says Runge.
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According to the latest issue of the U.S. Energy Information Administration’s (EIA) “Electric Power Monthly,” renewable energy sources (biomass, geothermal, solar, wind) increased by 12.8 percent last year compared to 2011 and provided 5.4 percent of net U.S. electrical generation. Solar increased by 138.9 percent while wind grew 16.6 pecent, geothermal by 9.6 percent, and biomass (i.e., wood, wood-derived fuels, and other biomass) by 1.6 percent. Since 2007, non-hydro renewables have more than doubled their contribution to the nation’s electrical supply.

At the same time (2012 compared to 2011), total net U.S. electrical generation dropped by 1.1 percent with petroleum coke & liquids down by 24.1 percent, coal by 12.5 percent, and nuclear by 2.6 percent. Less than a decade ago, coal provided more than half the nation’s electricity, fell to 37.4 percent while nuclear fell below 19 percent. Conventional hydropower also declined by 13.4 percent due to last year’s drought and lower water flows, but natural gas expanded by 21.4 percent to provide 30.3 percent of net electrical generation.

Conventional hydropower and non-hydro renewable sources combined accounted for 12.22 percent of net U.S. electrical generation. However, as EIA has noted in the past, these figures do not comprehensively reflect distributed, non-grid connected generation and thereby understate the full contribution of renewables to the nation’s electrical supply.

EIA’s report also reveals the top renewable-electricity generating states for 2012: top five wind states: Texas, Iowa, California, Oklahoma, and Illinois;  top five biomass states: California, Florida, Maine, Georgia, and Alabama; top five geothermal States: California, Nevada, Utah, Hawaii and Idaho; and top five solar states: California, Arizona, Nevada, New Jersey, and New Mexico.

“Technical advances, falling costs, and the desire to address climate change have combined to rapidly expand the contribution of renewable energy to the nation’s electrical generation,” said Ken Bossong, Executive Director of the SUN DAY Campaign. “With the right policy incentives, one can foresee these cleaner energy sources providing the bulk of the nation’s electrical needs within a generation.”

The Agriculture Energy Coalition (AgEC) today urged Congress to begin work on a new five-year Farm Bill with strong mandatory funding for energy programs.

The coalition notes that programs included in the farm bill Energy Title including the Rural Energy for America Program (REAP), Biomass Crop Assistance Program (BCAP), Biorefinery Assistance Program (BAP) and Biobased Markets Program (Biopreferred) have helped create jobs and economic growth in rural America, develop new agricultural markets, and improve farmers’ and ranchers’ energy self-sufficiency.

“Farm energy programs have paid a tremendous return for rural Americans, in terms of new jobs, investments in new energy efficiency and bioenergy technology, and new biobased products,” said Lloyd Ritter, Agriculture Energy Coalition co-director. “Economic growth and job opportunities in rural America are at risk without a renewal of funding for these effective programs.”

The American Taxpayer Relief Act of 2012 extended the 2008 Farm Bill without funding for energy title programs. Senate Majority Leader Harry Reid (D-NV) re-introduced the five-year farm bill passed by the Senate last year, calling it a “revolutionary piece of legislation.” The House failed to pass a farm bill last year.

A new report shows that advanced energy became a $1.1 trillion market globally in 2011, outpacing even pharmaceutical manufacturing worldwide, and the U.S. sector is expected to have grown by 19 percent last year, with American revenues rising to $157 billion. The report from Advanced Energy Economy highlights how in 2011 alone, this advanced energy sector, including hydropower, solar, wind, geothermal, waste and biomass, generated more than $20 billion in federal, state and local taxes:

“Advanced energy is what happens when energy meets 21st Century technologies,” said Graham Richard, CEO of Advanced Energy Economy, a national business organization. “This report defines precisely, for the first time, the size, breadth, and scope of the advanced energy industry. With a $1 trillion global market and a U.S. industry that is already bigger by revenue than trucking, advanced energy is a significant contributor to the economy today and has greater potential for tomorrow.”

AEE defines advanced energy as the best available commercial technologies for meeting energy needs today and tomorrow. With global energy consumption projected to rise nearly 40 percent by 2030, future prosperity depends on meeting this growing demand with energy that is secure, clean and affordable.

Officials compare the potential of the advanced energy sector to transform society and the economy to how the Internet has created so many new opportunities. AEE admits that its estimates might be a bit conservative, understating the size and extent of advanced energy economic activity in the U.S. and around the world.

The Federal Energy Regulatory Commission’s Office of Energy Projects has released its latest “Energy Infrastructure Update,” and finds that renewable energy sources including biomass, geothermal, solar, water, and wind, accounted by 49.10 percent of all new domestic electrical generating capacity installed during 2012. The total was 12,956 MW and more than a quarter of that new capacity, or 3,276 MW, came online during December 2012 alone.

Wind power led the way in 2012 with 164 new “units” totaling 10,689 MW installed. Solar power followed with 240 units totaling 1,476 MW installed. Biomass added 100 new units totaling 543 MW while geothermal steam and water each had 13 new units with installed capacities of 149 MW and 99 MW respectively. By comparison, during 2012, new natural gas generation in service totaled 8,746 MW (33.15%) followed by coal (4,510 MW -17.09%), nuclear (125 MW – 0.47%), and oil (49 MW – 0.19%).

New capacity from renewable energy sources in 2012 increased by 51.16 percent compared to 2011 when those sources added 8,571 MW. In 2011, renewables accounted for 39.33 percent of all new in-service generation capacity. Renewable sources now account for 15.40 percent of total installed U.S. operating generating capacity: water – 8.47 percent, wind – 4.97 percent, biomass – 1.30 percent, solar – 0.34 percent, and geothermal – 0.32 percent. This is more than nuclear (9.24%) and oil (3.57%) combined.

“If there were still any lingering doubts about the ability of renewable energy technologies to come on-line quickly and in amounts sufficient to displace fossil fuels and nuclear power, the 2012 numbers have put those doubts to rest,” said Ken Bossong, Executive Director of the SUN DAY Campaign. “Not only has renewable energy become a major player in the U.S. electrical generation market, but it has also emerged in 2012 as THE reigning champion.”

There is a little secret in the renewable energy sector that many don’t know about – New Markets Tax Credits. These tax credits provide incentives for private investors to help fund projects that create jobs and diversify economics, and were extended for another year as part of the American Tax Relief Act.

Congress first established the program in 2000 to stimulate investment and economic growth in low-income and under-served rural and urban communities that are often overlooked by conventional capital markets. Investors receive a seven-year, 39-percent federal tax credit as incentive to finance loans and investments in businesses and economic development projects in distressed communities. They are not restricted to energy projects.

According to CEO Charles Spies, CEI Capital Management is a national leader in awarding New Markets Tax Credits, having invested nearly three-quarters of a billion dollars in the last nine years. CEI Capital Management has its own triple bottom line investment criteria, where projects must benefit the local community, demonstrate economic gain and have a positive impact on the environment.

Last year, CEI Capital Management allocated $20.7 million in new markets tax credits to the $275 million Burgess BioPower Plant in rural Berlin, New Hampshire. Built on the site of a defunct paper mill, the plant will produce 75 megawatts of power from 759 thousand tons of sustainably grown wood annually. The project currently employs about 300 construction jobs and is on track to sustain 40 jobs in management and plant operations plus hundreds more in the woods associated with harvesting and transporting biomass.
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