EPA Changes Cellulosic Waiver Credit Provisions

epa-150The Environmental Protection Agency (EPA) issued final rulemaking this week to clarify the data sources and methodology used to calculate the Cellulosic Waiver Credit (CWC) price.

Under the rule, EPA has calculated the CWC prices for 2014 at $0.49 and for 2015 at $0.64. According to the EPA document, “The price of CWCs are determined using a formula specified in the Clean Air Act (CAA). The cellulosic waiver credit price is the greater of $0.25 or $3.00 minus the wholesale price of gasoline, where both the $0.25 and $3.00 are adjusted for inflation.”

The direct final rule also amends the regulations to remove the CWC prices from the code of federal regulations allowing them to be announced in a more timely fashion on EPA’s website.

Partnership Accelerates Cellulosic Ethanol

nec15-cellerateAt the National Ethanol Conference last week, the Renewable Fuels Association (RFA) presented Quad County Corn Processors (QCCP) with the RFA 2015 Industry Award for the development of a process that led to the plant producing the very first gallons of cellulosic ethanol last year.

Cellerate process technology is a collaborative effort between Syngenta and QCCP’s subsidiary company Cellulosic Ethanol Technologies LLC that QCCP licenses to other ethanol plants. Cellerate, which was previously known as the Adding Cellulosic Ethanol process, was invented by QCCP plant engineer Travis Brotherson, pictured here with Jack Bernens of Syngenta.

I talked with Travis and Jack about what Cellerate can do for the industry as a whole and individual plants in this interview: Interview with Quad County Corn Processors and Syngenta

2015 National Ethanol Conference Photo Album

RFA Presents Ethanol Industry Awards

The Renewable Fuels Association (RFA) honored industry leaders during the 20th annual National Ethanol Conference in Grapevine, Texas this week.

nec15-awardBob Reynolds, president of Downstream Alternatives, received a Lifetime Appreciation Award for his role in the expansion of ethanol in today’s transportation fuel market.

Presenting the award, RFA CEO Bob Dinneen said Thompson spent his entire professional career working on fuel quality issues. “When he founded Downstream Alternatives, he did so to make sure that as renewable fuels, like ethanol, were introduced to the market, consumers would see no degradation in product quality,” said Dinneen.
2015 RFA Lifetime Award, Bob Reynolds

During his career, Reynolds authored numerous studies on the transportation and logistics of oxygenated fuels and was deeply engaged in projects involving fuel blending, product quality assurance, and terminal operations. In his nearly three and a half decades of working with the RFA, Reynolds had a hand in nearly every aspect of the downstream portion of the fuels industry. The ethanol industry continues to benefit from his work in developing fuel standards and technical guidelines for auto manufacturers and his ability to find common ground within the oil and automotive industries.
Interview with Bob Reynolds, RFA Award Winner

nec15-quad-awardIn recognition of their achievements in advancing the use of cellulosic ethanol technology, RFA presented Delayne Johnson and his Cellerate team at Quad County Corn Processors (QCCP) with the 2015 Industry Award.

“Delayne and his team have worked tirelessly toward making the production of cellulosic ethanol a reality,” said Dinneen. “The company helped officially kick off a new era, not only for the company but for the entire biofuel industry, when it opened its 2-million-gallon cellulosic bolt-on facility in Galva, Iowa, last September. Their breakthrough technology reflects their leadership in the industry and their commitment to innovation.”

Cellerate process technology is a collaborative effort between Syngenta and QCCP’s subsidiary company Cellulosic Ethanol Technologies LLC that QCCP licenses to other ethanol plants. Cellerate, which was previously known as the Adding Cellulosic Ethanol process, was invented by QCCP plant engineer Travis Brotherson.

2015 RFA Industry Award, Quad County Corn Processors

Cellerate process technology is a collaborative effort between Syngenta and QCCP’s subsidiary company Cellulosic Ethanol Technologies LLC that QCCP licenses to other ethanol plants.

2015 National Ethanol Conference Photo Album

New President for POET-DSM Joint Venture

POET DSM logoPOET-DSM Advanced Biofuels has announced that Dan Cummings will serve as first president for the joint venture.

“Dan has more than 25 years of experience in the energy sector, and we’re excited to have him leveraging that knowledge to grow cellulosic ethanol production for the world,” said Jeff Lautt, Chairman of the POET-DSM Board. “We look forward to Dan taking the reins and leading this joint venture into 2015.”

cummingsCummings, who previously served as President and Director of INEOS New Planet BioEnergy, will oversee day-to-day operations of POET-DSM, represent the joint venture publicly, and coordinate functions between the parent companies. He will also act as the central point of contact for external relations, which includes all technology licensing activities for POET-DSM worldwide.

“This joint venture has already proven it can change the world, and I look forward to working with the individuals who helped make that happen,” Cummings said. “After two decades in the energy and clean tech sectors, I’m excited to start this new journey with POET-DSM.”

POET-DSM announced the startup phase in September for its 20 million-gallon-per-year cellulosic ethanol plant, which will later ramp up to 25 million gallons per year. The Emmetsburg, Iowa plant, dubbed “Project LIBERTY,” uses corn cobs, leaves, husk and some stalk to make renewable fuel. The joint venture is now marketing its LIBERTYTM Technology package to third parties for continued energy development.

Sorghum for Cellulosic Ethanol Update

While corn stover might be the big talk recently in the cellulosic ethanol game, sorghum could emerge as an alternative to the feedstock for the advanced green fuel. During the recent American Seed Trade Association CSS 2014 and Seed Expo in Chicago, Leah Guffey caught up with Scott Staggenborg of Chromatinasta-css-14-chromatin, a sorghum genetics company, and they talked about using sorghum for cellulosic ethanol.

“People forget that many of sorghum’s original uses were for animal feed, so biomass yield is important and digestability is important,” said Staggenborg. “So if you think about cellulosic ethanol production, it’s just really a big, steel or concrete digester, rather than a four-legged digester.”

He went on to say that with the 40,000 varieties of sorghum availability, his company is taking advantage of traditional breeding and modern molecular methods to get the most out of sorghum, especially for cellulosic biofuels. One of the breeds he points to as having great potential for biofuels is sweet sorghum, which he compares to an annual sugarcane, except sorghum has to re-established each year from seed.

“It’s high biomass, and it has high juice yields, as well as high sugar yields,” Staggenborg explained. “Those three combined result in high sugar yields per acre, and that’s the goal of our breeding program, as well as altering the composition of the sugar itself.”

He added that the Renewable Fuels Standard is a big driver in making sure there is a market for sorghum-based, or any other feedstock-based, cellulosic biofuel.

“The RFS establishes a market, establishes a need, sort of primes the pump for the demand, until it becomes something that widely available, although it’s already widely accepted, and allows a fledgling industry to move forward.”

You can hear all of Leah’s interview with Scott here: Scott Staggenborg, Chromatin

DF Cast: Bundling Biomass for a Cellulosic Future

As cellulosic ethanol plants are opening up across the country, those facilities need a way to get the feedstocks, while farmers need a way to get that biomass to those new refineries. That’s where Pacific Ag comes in.

In this edition of the Domestic Fuel Cast, we talk to CEO Bill Levy and Steve Van Mouwerik, Vice President of Operations for Pacific Ag, as they talk about how their custom field residue business, which started in 1999 for baling crop residues for animal feeding operations, is a good fit for the emerging cellulosic industry, as Pacific Ag is demonstrating at Abengoa’s cellulosic ethanol biorefinery in Kansas that went online this past October and is expected to produce 25 million gallons of advanced ethanol per year.

Hear more about it here: Domestic Fuel Cast - Bundling Biomass for a Cellulosic Future

PacificAg Can Help Ethanol Plants Go Cellulosic

pacificag-logoThe largest and most experienced biomass harvest company in the country wants to help ethanol plants develop or expand operations into the production of cellulosic ethanol by saving time and money on supply chain development. PacificAg, which is already supplying biomass for plants in Iowa and Kansas, enables cellulosic biorefineries the ability to source cost-competitive biomass for biofuel and biochemical production.

PacificAg started in the residue management business nearly 20 years ago harvesting forage crops for feed in Oregon and CEO Bill Levy says they have expanded to meet the needs of the growing biofuels industry in the Midwest.

pacificag-harvest“We can save an ethanol plant the time and money in developing a supply chain,” says Levy. “It’s a very specific supply chain with very specific challenges and I think we have a lot of experience overcoming these challenges and developing these supply chains quicker than anybody else.”

Biomass products include corn stover, wheat straw and milo stover products because of their abundance and supply. “What we’ve found in the Midwest is that not all growers are accustomed to removing this supply,” says Levy, stressing that a major component of their suite of services includes a balanced residue management program.

There are two critical elements an ethanol plant must consider when ramping up cellulosic ethanol production: year round biomass supply and sustainability around biomass residue harvest.

Harrison Pettit, a company partner who works with ethanol plants to help them get their biomass programs off the ground, notes that market needs for advanced biofuels industry are long-term and year round. “Ethanol plants are built to operate for more than 30 years.”

How does a grower know if he or she should participate in a biomass residue harvest program? Pettit says the first question to ask is, Are you within 100 miles of a cellulosic ethanol facility? “If you are a corn grower, wheat grower or milo grower, then you really ought to give us a call,” says Pettit. “If you really want to learn about how a residue management program can benefit your ground and benefit your bank account, then we want to talk.”

Learn more about PacificAg and the services they offer for both farmers and ethanol plants in these interviews with Levy and Pettit.
Interview with PacificAg CEO Bill Levy
Interview with PacificAg partner Harrison Pettit

Leifmark, New Holland Bale Stover for Ethanol

leifmark-new-holland-1Baling corn stover is part of the next generation of cellulosic ethanol, and two major players in the green fuel and agribusiness markets are moving that process forward. Leifmark, LLC and New Holland Agriculture recently teamed up to test equipment and methods used to gather, bale, and store the corn stover left behind after the grain harvest in two Iowa cornfields.

Paul Kamp, Leifmark’s Chicago-based partner, coordinated the 520-bale collection. “Using local specialists and best practices, we showed stover harvesting on area farms is very practical. That’s good news for three ethanol producers now considering new businesses making cellulosic ethanol from biomass.”

Developing more efficient methods and equipment brings down the overall cost of stover, says Kamp, whose company markets Inbicon Biomass Refinery technology in North America.

“Couple lower stover prices with a predictable supply chain,” adds Kamp, “and you reduce risk perceptions with biomass. So future plant owners can feel confident putting their capital into cellulosic ethanol projects.”

New Holland Agriculture’s Scott Wangsgard emphasizes that “technology companies like Inbicon have certain specifications for corn stover bales. To meet them, we’ve been designing specialized equipment that also boosts collection efficiencies.”

New Holland used a high-capacity baler and automated bale wagon that picks up, transports, and stacks the 3′ x 4′ x 8′ square bales required for Inbicon’s refining process. Officials say the square bales handle more easily than round ones, store in much less space, and pack tighter so flatbed trucks can haul more tonnage per trip.

POET-DSM Commends Partners in Cellulosic Ethanol Venture

POET DSM logoPOET-DSM is commending its partners in a cellulosic ethanol venture. This company news release says POET is praising Suomen Bioetanoli Oy and the government of Finland after the Finnish government announced a 30 million euros grant to Suomen Bioetanoli Oy to build a plant that will convert wheat straw into about 24 million gallons of ethanol annually.

“Suomen Bioetanoli Oy is taking a bold step forward in growing Europe’s bioeconomy and expanding our sources for transportation fuel,” said Rob van Leen, Chairman of the POET-DSM Board. “Additionally, the grant award shows Finland’s firm commitment to growing sustainable energy production. Our joint venture partners look forward to working with Suomen Bioetanoli Oy to make commercial cellulosic bioethanol a reality in Finland.”

POET and DSM are in discussions with Suomen Bioetanoli Oy on how to utilize process, yeast and enzyme technology from the respective companies for the conversion of cellulose to ethanol.

Deck Stacked Against Ag and Biofuels in Report

bpcThe Bipartisan Policy Center (BPC) appears to be a bit partisan in a new report released this week on “Options for Reforming the Renewable Fuel Standard.”

The report was produced after several meetings during the year with an advisory group that consisted of 23 members, seven of which were oil companies representatives. Only five members of the group represented agriculture or advanced biofuels and biodiesel producers. The rest were a mix of academia (2), big business (4) with two of those representing Toyota, environmental groups (2), and policy organizations (3).

Both of the agriculture representatives were from the National Farmers Union (NFU), president Roger Johnson and vice president of programs Chandler Goule. “It was very important that agriculture that supports the renewable fuels industry be present at the table,” said Goule, who said the meetings were held in a very professional manner. “The problem with the meetings is that they were heavily skewed toward big oil.”

NFUlogoThe report concluded that improvements to the RFS are needed, but did not recommend actual repeal of the law. Goule says NFU has major objections to two of the policy recommendations made in the report. “The flattening of the total renewable fuel mandate at its current level going forward, but continuing to increase the three advanced categories, we have significant concerns about what that would to do ethanol and biodiesel,” he said. “Even more concerning was removing the total renewable fuel mandate and only mandating the three advanced categories. Basically what they are doing is giving in to Big Oil’s conclusion that a blend wall exists, which it does not.”

Chandler talks more about the BPC report in this interview: Interview with Chandler Goule, NFU

Seeds of Cellulosic Ethanol

asta-css-14-dupontLike all good things, cellulosic ethanol starts with the seed.

During a presentation at the American Seed Trade Association CSS 2014 and Seed Expo last week in Chicago, John Pieper with Dupont Industrial Biosciences talked about the importance of seed to the cellulosic ethanol industry. “It has everything to do with seed because it has to do with farming,” he said. “It has to do with making our lands and soils more productive as well as being able to realize the full potential of seed and other crop inputs that we have today that are hindered because of tillage and crop rotation practices.”

Using non-food agricultural products to make ethanol also provides economic benefits for farmers on several levels. “By taking stover and converting it from an agricultural landfill, waste product, into a recycled or used by-product, we get more money back to the farm operation to invest in tools and production practices – and we get a better seed bed for their next crop to be prolific and highly productive,” said Pieper.

Pieper talked about what Dupont is doing in the cellulosic ethanol field. “We’ve been operating a demonstration facility in Vonore, Tennessee for the last four years and for over two years we’ve taken corn stover from central Iowa down to the plant and made transportation fuel-grade ethanol from it,” he said. Now they are preparing to open a commercial facility in Nevada, Iowa next year and Pieper says they were pleased to see Abengoa and POET open their first plants this year. “It’s a very exciting time,” he said, but he does note that stable government policy – including the Renewable Fuel Standard – is key to moving forward in the future.

Listen to my interview with Pieper here: Interview with John Pieper, Dupont Industrial Biosciences


2014 ASTA CSS & Seed Expo photo album

Senate Passes Tax Extenders

senateFollowing the recent action by the U.S. House of Representatives, the Senate on Tuesday evening passed the package of tax incentives for 2014 that will expire once again in just two weeks.

For the renewable energy industry, the legislation includes the second-generation biofuel production tax credit and the accelerated depreciation allowance for cellulosic biomass properties, as well as tax credits for alternative fuel vehicle refueling infrastructure, alternative fuel mixtures, and wind energy and the dollar-per-gallon Biodiesel Tax Incentive.

Renewable Fuels Association
(RFA) president Bob Dinneen says the temporary extensions are a step in the right direction, but called on Congress to provide more certainty in the future. “These incentives can help to level the playing field in a tax code that is overwhelmingly tilted toward incumbent fuels and established oil extraction technologies,” said Dinneen. “Congress should be commended for helping businesses and consumers alike. But next year is a whole new ball game and in order to balance the scales and make future tax incentives truly helpful, Congress must take a good hard look at overarching tax reform legislation.”

Noting the short term nature of the legislation, Senate Finance Committee Chairman Ron Wyden said, “With this tax bill, the Congress is turning in its tax homework 11 months late…The legislation accomplishes nothing for 2015.”

The bill now goes to the president who is expected to sign it.

Quad County’s Delayne Johnson Featured on Car Clinic

Bobby Likis Car ClinicThe first cellulosic ethanol plant to go online in the U.S., Quad County Corn Processors, is being featured in an upcoming “Bobby Likis Car Clinic” program. Quad County CEO Delayne Johnson will be live on air this Saturday, December 6, 2014 at 11:25 am Eastern at WatchBobbyLive.com.

During the interview, Johnson will shine light on many renewable fuels related topics including a deeper look into the differences between cellulosic vs. conventional ethanol, the many benefits ethanol offers and what is in store for the future of cellulosic ethanol.

tN_112580_delayneJohnson expands on the benefits of cellulosic ethanol, “Quad County Corn Processors is proud to be one of the first companies out of the gate to produce cellulosic ethanol. The ethanol produced at our facility is reducing greenhouse gas emissions and helping lower America’s dependence on foreign oil. I am excited to join Bobby Likis to explain to listeners how cellulosic ethanol is made and the benefits of next-generation biofuels.”

Likis adds, “On Car Clinic globalcasts, I’m committed to expand listeners’ and viewers’ knowledge base beyond ‘the rumor mill’ so often associated with renewable fuels. Delayne will clear the air about how, specifically, cellulosic ethanol production is accelerating solutions on many levels.”

Italy Binds Biofuel Targets

Italy has passed a law that will set the way for national binding targets. The news comes on the heels of talks by the European Union (EU) on what, if any, binding renewable energy targets should be in place. The official degree as published in the “Gazzetta Ufficiale” states that fuel suppliers will be obligated to blend fuel:

  • at least 0.6% advanced biofuels in petrol and diesel beginning January 1, 2018;
  • 0.8% beginning January 1, 2020; and
  • 1% beginning January 1, 2022.

The passage of Italy’s law comes at the same time the European Council released its 2030 Energy and Climate Package where the transportation sector has seen the most positive changes when compared to the first proposal. The law now puts Italy as the lead in Europe on mandating advanced biofuels from waste and residues.

The Italian decree comes six months after the Italian Ministry of Economic Development announced in May the intention to fund the construction of three advanced biofuels EU 2030 Climate Targetsfacilities in Southern Italy and is part of the country’s initiatives to boost competitiveness.

In the fall of 2013, Novozymes, together with Italian company Biochemtex opened the world’s first commercial-scale advanced biofuels refinery in Italy – using agricultural waste as input. When asked by DomesticFuel what message Italy’s mandate sends to other countries, Novozymes’ Vice President for Biomass Conversion, Sebastian Søderberg answered, “In general, it will send a very positive signal to the other European countries and outside Europe. Italy and a number of other member states have been pushing for a mandate for advanced biofuels at EU level for more than 2 years and Italy’s move will support this process.” Continue reading

DuPont to Sit on RFA Board

RFANewlogoDuPont will now be sitting on the governing board of the Renewable Fuels Association (RFA). The company has been an associate RFA member for more than 10 years and has now upgraded its membership as its first cellulosic ethanol plant is in its final stages of construction. The biorefinery will be co-located next to Lincolnway Energy in Nevada, Iowa and when complete will produce 30 million gallons per year of ethanol using corn ag waste.

“Next generation cellulosic ethanol is emerging on the market and DuPont is at the forefront of innovation. Their knowledge and expertise in all aspects of the biofuels industry make them a valuable addition to the Renewable Fuels Association,” said Bob Dinneen, president and CEO of the RFA. “I am eager to work together to advance the renewable fuels industry, which is already directly and indirectly employing nearly 400,000 people, reducing GHG emissions, and lowering America’s foreign oil dependence.”

William Feehery, president of DuPont Industrial Biosciences said of their renewed commitment to the ethanol association, “RFA is a leading voice in Washington on issues related to our industry and we look forward to working even more closely together as we reach full cellulosiDuPont Logoc production in the coming year. We acknowledge the hard work RFA has done to promote and defend the Renewable Fuel Standard (RFS) both as an individual organization and as our partner in the Fuels America Coalition. A stable RFS is vitally important to support growth for the existing corn ethanol industry while garnering the investment needed to expand and grow cellulosic ethanol in the United States. We must keep the technology, research, and development here in the United States so consumers can continue to have choices at the pump and America can reduce its reliance on foreign oil.”