Domestic Fuel

Gulf Ethanol Corporation has annouced the change of its name to Gulf Alternative Energy Corporation. The name change encompasses the added focus of the company’s biomass processing technology.

With their main office in Houston, Texas, Gulf Alternative Energy develops cellulosic ethanol pre-processing and production technologies for the ethanol producers in North America. The Company plans to use its patented, exclusive technology to retrofit existing corn-based ethanol plants for cellulosic ethanol production and also for use in the design and construction of its own cellulosic ethanol production facility.

Gulf Alternative Energy is working to transform America’s renewable and abundant biomass resources into cost competitive, high performance biofuels such as E85.

Airmen and soldiers in Alaska could one day be using alternative fuels for their operations.

The Alaska Journal of Commerce reports the U.S. Defense Logistics Agency has announced it wants contractors to bid on a long-term deal to supply for those Air Force and Army cold weather warriors:

Mark Iden, deputy operations director of the Defense Energy Support Center, a part of the Defense Logistics Agency, said his agency is soliciting proposals from industry to supply a 50-50 blend of alternative and conventional fuels.

The agency wants the alternative fuels made through the Fischer-Tropsch process, a chemical process that converts carbon-based material like biomass, natural gas or coal to high-quality liquid products.

Officials say they want to let a minimum five-year purchase contract with options for extensions… a great departure from the agency’s typical one-year fuel purchase contracts.

Hmmm… maybe if the DoD wants to get a fuel that is earth-friendly and can stand up to the rigors of an Alaskan winter, maybe they should talk to our friends at the Indiana Soybean Alliance. As you might remember from the latest Domestic Fuel podcast, the ISA just recently successfully tested a 100 percent blend of biodiesel during a trip from Anchorage to the Arctic Circle… in temperatures well under 20 degrees below zero!

Senators John Thune (R-SD), Jon Tester (D-MT), and Saxby Chambliss (R-GA) have reintroduced legislation that would fix the flawed definition of renewable biomass in the Energy Independence and Security Act of 2007.

The definition of “Renewable Biomass” in the 2007 Energy Bill excludes any material removed from national forests and most private forestlands. Therefore, cellulosic ethanol derived from this feedstock does not count toward the expanded Renewable Fuels Standard (RFS), resulting in blenders and refiners having no incentive or requirement to purchase biofuels produced from these sources.

The proposed legislation would change the definition of “Renewable Biomass” to more closely conform to earlier versions of the RFS and the 2008 Farm Bill. That would allow pre-commercial and post-commercial waste from national forests to be eligible feedstocks under the definition of “Renewable Biomass” and allows for waste materials to be removed from our public lands which will assist in reducing fire danger.

The Farm Bill also includes several incentives for the production of cellulosic ethanol based on this definition of “Renewable Biomass.” These incentives include grants and loan guarantees for cellulosic ethanol plants and provisions of the Biomass Crop Assistance Program.

According to a 2005 U.S. Department of Energy and U.S. Department of Agriculture study, about 2 billion tons of treatable biomass on federal forestland is available for bioenergy production. A significant portion of this biomass could be sustainably removed on an annual basis, not counting post-commercial waste such as wood chips from paper mills.

With appropriate policies to help overcome current fiscal constraints, the advanced biofuels industry can meet environmental goals, create new green jobs and contribute to economic growth, according to industry leaders who met this week at the U.S. Department of Energy (DOE) Office of the Biomass Program’s Biomass 2009: Fueling Our Future conference.

During the conference opening plenary session, titled “Dispelling the Myths and Addressing the Challenges,” Biotechnology Industry Organization (BIO) executive vice president Brent Erickson stressed the economic potential that development of the advanced biofuels industry holds.

“Building advanced biofuel production to a modest target of 45 billion gallons by 2030, which can be achieved by maintaining the same pace of technology development, could create more than 400,000 jobs within the industry and 1.9 million new jobs throughout the economy,” said Erickson. “Further, it could provide an economic boost of $300 billion.”

Richard Hamilton, chief executive of energy crop company Ceres, Inc., said large increases expected in crop productivity, as well as better utilization of fallow or marginal land, will absorb the demands being placed on U.S. farmers by bioenergy. “And if we look at improved ways to roll-out advances in plant science globally, and rely primarily on non-food, low-carbon crops like switchgrass, sorghum and Miscanthus, then the math behind biofuels looks even more promising,” he said.

Jack Huttner with DuPont Danisco Cellulosic Ethanol discussed some of the economic and policy challenges facing the industry and noted that everything depends on a robust government support structure. “We won’t need incentives and subsidies forever, but we need them to get started. In particular, we need regulatory regimes and policies from agencies like the EPA that don’t send the wrong signals to the marketplace.”

The conference was held yesterday and today at the Gaylord National in National Harbor, MD.

Researchers at the University of Wisconsin-Madison have reportedly developed a two-step method to convert the cellulose in raw biomass into biofuel.

The process, published in a recent Journal of the American Chemical Society issue, uses untreated, inedible biomass as the starting material.

According to a story from the University of Wisconsin, the first step in the process is the conversion of cellulose into the “platform” chemical 5-hydroxymethylfurfural (HMF), from which a variety of valuable commodity chemicals can be made. “Other groups have demonstrated some of the individual steps involved in converting biomass to HMF, starting with glucose or fructose,” says Ronald Raines, a professor with appointments in the Department of Biochemistry and the Department of Chemistry. “What we did was show how to do the whole process in one step, starting with biomass itself.”

In the second step, Raines says they converted HMF into the promising biofuel 2,5-dimethylfuran (DMF). Taken together, the overall yield for this two-step biomass-to-biofuel process was 9 percent, meaning that 9 percent of the cellulose in their corn stover samples was ultimately converted into biofuel. Raines says DMF has the same energy content as gasoline, doesn’t mix with water and is compatible with the existing liquid transportation fuel infrastructure, having already been used as a gasoline additive.

The U.S. Departments of Energy (DOE) and Agriculture (USDA) today announced up to $25 million in funding for research and development of technologies and processes to produce biofuels, bioenergy, and high-value biobased products.

“These projects will be among many Obama Administration investments that will help strengthen our economy and address the climate crisis. A robust biofuels industry – focused on the next generation of biofuels – is critical to reducing greenhouse gas emissions, reducing our addiction to foreign oil and putting Americans back to work,” said Secretary of Energy Steven Chu.

“USDA is committed to research that will support President Obama’s goal of dramatically increasing the production of biofuels in the United States,” said Agriculture Secretary Tom Vilsack. “These grants will help support the development of a sustainable domestic biofuels industry by broadening the nation’s energy sources as well as improving the efficiency of renewable fuels.”

Funding is being offered for projects in three specific areas – Feedstocks development; Biofuels and biobased products development and Biofuels development analysis.

The State of Colorado has handed out $620,000 in grants for research and development into a variety of renewable energy sources, including ethanol, biodiesel, biomass and wind energy.

This press release from the state Department of Agriculture says the 14 grants have been hand out through the “Advancing Colorado’s Renewable Energy” (ACRE) program:

“ACRE is a statewide effort to promote energy-related projects beneficial to Colorado’s agriculture industry,” said Tom Lipetzky, Markets Division Director at the Colorado Department of Agriculture. “The grants awarded by this project are an important step toward helping our agriculture industry to be a leading participant in the new energy economy.”

Feasibility studies address the viability of establishing an agricultural energy-related project and may address the market for the product, engineering requirements, economic viability, environmental concerns, legal requirements, management, and other necessary study components. A maximum grant amount of $25,000 was awarded to three feasibility projects:
Read the rest of this post…

A group advocating for the development and use of renewable energy, including biomass, biodiesel, ethanol, carbon and wind, wants a renewable fuels standard in North Dakota.

This story from Biodiesel Magazine says the North Dakota Alliance for Renewable Energy (NDARE) has issued a proposal for how the state can be more renewable energy friendly:

Regarding biofuels, NDARE recommended that the state enhance the production, availability, distribution and use of ethanol and biodiesel within the state. This would include adopting a renewable fuels standard mandating the sale of E10 and B5 at retail locations. NDARE also recommended strategically developing renewable fuel infrastructure throughout the state, including the installation of blender pumps.

The organization suggests that the state foster the development of next-generation biofuels, which includes the development of agricultural and native feedstocks needed to produce cellulosic biofuels. NDARE recommended the state invest a portion of its general fund surplus into a commercial-scale application of next-generation energy technologies, such as cellulosic biomass conversion of perennial grasses and agricultural residues.

Members of NDARE come from farm and commodity groups, investor-owned utilities, rural electrical cooperatives, the state government, universities, financial institutions and private sector developers. You can read their recommendations by clicking here.

Bills addressing biodiesel and biomass are on Michigan Gov. Jennifer Granholm’s desk, waiting for her signature to help make the state a national leader in alternative fuel production.

This story from The Bay City (MI) Times has details about some of the bills:

• Dedicating five new Alternative Energy Renaissance Zones for facilities that use cellulosic materials for fuel production, bringing the total number to 15;

• Creating a property, sales and use tax exemption for machinery used to harvest biomass.

Not only will the bills help alternative fuels in Michigan, they will help create thousands of jobs in a state that right now is on some shaky employment ground.

Biomass will be the fuel of choice for nearly half of the energy produced by a Connecticut power plant.

This story from Biofuel Review says NRG Energy’s Montville Generating Station in Connecticut is developing a a new biomass project that will produce 30 MW of the unit’s 82 MW generating capacity:

According to John Ragan, President of NRG’s Northeast Region; “Montville marks NRG’s fourth RepoweringNRG project in Connecticut. We are committed to developing new and environmentally responsible power generation, and to helping the state meet its increasing demand for cleaner alternative energy sources.”

“Using biomass, together with fossil fuels, in our existing fleet is one of the quickest and most efficient ways to reduce carbon intensity. When this biomass project comes online, it will be another step in helping Connecticut reach its goal of creating 20 percent Class 1 renewable power generation by 2020,”said Michael Liebelson, Chief Development Officer–Low-Carbon Technology, NRG Energy. “In addition to providing clean, renewable energy to Connecticut residents, we are obtaining the biomass from nearby foresters and saw mills, which will provide economic benefits to the region.”

Farmers in the U.S could be growing hemp as a biomass crop, if a federal court rules in favor of two farmers trying to get a ban on the marijuana-related plant lifted.

This story from Biomass Magazine says the new president could also have a hand in lifting that ban:

The U.S. Appeals Court in St. Paul, Minn., heard arguments Nov. 12 by two North Dakota farmers trying to get a lower court’s dismissal of their suit against a federal agency overturned. David Monson, Osnabrock, N.D., and Wayne Hauge, Ray, N.D., have state approval to grow industrial hemp in North Dakota, but are suing the U.S. Drug Enforcement Administration to get a federal permit to grow industrial hemp. Hemp is related to the illegal drug marijuana and under federal law some of the industrial hemp plant is considered a controlled substance. The three-judge appeals panel will issue a written decision, but that isn’t expected to be available for several months…

[Jim Pillsbury of Framingham, Mass., who is developing hemp for heating pellets and had a Canadian prototype biomass research facility] predicts President-elect’s Barack Obama’s administration will lift the ban on growing hemp in the United States, and pointed out that it’s being grown in many other countries. “The new administration has a solid commitment to bring new and old ideas to the table for renewable energy,” he said. Industrial hemp is an ideal bioenergy, Pillsbury said, citing figures from Canada that show straw yields of 6 tons per hectare (2.47 acres) and 1.5 tons of fiber, in addition to 200 liters (50 gallons) of oil pressed from the seed.

A Texas-based renewable energy company is taking over an abandoned electrical plant with plans to run the generators on green energy sources.

This press release posted on MarketWatch.com says Biofuels Power Corporation will purchase the site, infrastructure and equipment of the decommissioned H.O. Clarke Electric Generating Station in central Houston:

The operational infrastructure on the H.O. Clarke site includes 65,000 barrels of above ground storage tanks and a high-pressure natural gas pipeline that is connected to the distribution system. The H.O. Clarke property is adjacent to a 500 MW switchyard operated by Centerpoint and has ready access to the ERCOT grid through a 12 kV transmission line.

“Our long-term goal is to redevelop the H.O. Clarke site as a clean energy industrial park that will use biofuels, biomass, natural gas, biogas and solar energy to provide green electricity and combined heat, power and refrigeration services for industrial and commercial tenants that need ready access to central Houston, the Houston Ship Channel and the Interstate Highway system,” said Fred O’Connor, President and CEO of Biofuels Power.

Biofuels Power already has two plants in the same area that run on 100 percent biodiesel that generate 15 megawatts of electricity that is sold to local companies. Officials hope the Houston Clean Energy Park will become a model for clean industrial redevelopment nationwide.

While it might have a past deeply rooted in petroleum, attendees of the Oklahoma Biofuels Conference in Oklahoma City this week were told renewable energy has a huge future in the Sooner State.

This story from Forbes says a huge wind corridor in the western part of Oklahoma, along with perennial native grasses for biofuels, gives the state a great potential to be a leader in alternative energy:

“We have 40,000 megawatts of wind potential in western Oklahoma, and that industry is exploding out of the ground as we talk,” said Oklahoma Energy Secretary David Fleischaker. “The Obama administration’s attitude toward bringing wind into the grid will really benefit that industry in Oklahoma.

“If you have an annual, you’ve got to pull the tractor out of the barn and plant it every year, which takes a lot of energy,” Fleischaker said. “If you have a perennial, it grows back every year automatically and you can leave the tractor in the barn.”

Renewable energy proposals had mixed results in yesterday’s elections, with Missouri easily passing one measure but California rejecting two others.

This entry from the InformationWeek blog has details:

In Missouri, Proposition C was passed, requiring investor-owned electric utilities “to generate or purchase electricity from renewable energy sources such as solar, wind, biomass, and hydropower with the renewable energy sources equaling at least 2% of retail sales by 2011 increasing incrementally to at least 15% by 2021, including at least 2% from solar energy; and restricting to no more than 1% any rate increase to consumers for this renewable energy.”

In California, Proposition 7 on renewable energy generation was handily defeated. With 77% of precincts reporting, the measure lost by a 2-to-1 margin. Likewise, Proposition 10 failed by a wide margin. Had it been approved, Proposition 10 would, according to the official voter information guide, “eliminate a credit that allows oil and gas companies to deduct property taxes from severance taxes. The change would bring in an estimated $321 million in the first year, with most going to college scholarships, plus communities affected by energy development, wildlife habitat, and clean energy projects.”

California’s Prop 10 came under fire from some environmental groups… as well as some readers of this blog (see my post from Oct. 18th and the associated comments). Just a quick note to all readers: I’m not necessarily promoting any of the items I blog about. I just want to make you aware of these items. It’s up to you to evaluate these things for yourself (whether a ballot measure or some new product). I blog… you decide.

There is some actual good that will come out of the devastation of Hurricane Ike.

This story from Greentech Media says Biofuels Power Corp. has announced plans to build a 4-megawatt power plant the will produce electricity from the woodchips and other debris from the storm:

The Woodlands, Texas-based company, traded over the counter using the symbol “BFLS,” on Friday signed a preliminary agreement with a wood-waste storage operator, DSMC, and with a consulting firm, Texoga Technologies Corp., that will retrofit abandoned oil wells for carbon-dioxide storage.

DSMC, based in Humble, Texas, has handled a bulk of waste disposal from the hurricane cleanup effort.

While the debris from Hurricane Ike eventually will be burned up, the article did point out the the Gulf Coast has plenty of hurricanes every year, so at least potentially, there would be plenty of feedstock.