Domestic Fuel

The U.S. Department of Agriculture has approved a conditional commitment of $232.5 million to build a cellulosic ethanol plant in Boardman, Oregon.

The commitment was made to ZeaChem Boardman Biorefinery, LLC (ZBB) through the Biorefinery Assistance Program. ZBB plans to operate a 25 million gallon per year biorefinery to be constructed on an industrial site in northeast Oregon, along the Columbia River.

“In his State of the Union address, President Obama outlined his vision for a new era for American energy—an economy fueled by homegrown and alternative energy sources that will be designed and produced by American workers,” said Agriculture Secretary Tom Vilsack. “This project and others like it will help to establish a domestic advanced biofuels industry that will create jobs here at home and open new markets in the Pacific Northwest and across America.”

The biorefinery will use high-yield cellulosic fermentation technology to produce advanced biofuels. The feedstock will consist of approximately 30 percent agricultural residue, such as wheat straw and corn stover, and 70 percent woody biomass from a local hybrid poplar farm. An existing 250,000-gallon per year cellulosic integrated demonstration plant at the site is currently generating operational data that will provide information needed for the commercial scale project, which will be located on an adjacent site. An estimated 51 percent or more of the biorefinery’s output will be advanced biofuel, and the remainder will be high-value biobased chemicals, such as acetic acid and ethyl acetate.

“This is a very exciting and innovative project and we are very pleased to see ZeaChem moving into the commercial stages of cellulosic ethanol production,” said Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC). “The advanced and cellulosic ethanol industry is breaking through in a challenging financial climate, which speaks to the evolution of the technology and the value proposition offered by the most innovative liquid fuel and chemical producers in the world.”

Ethanol giant POET is partnering with a Netherlands-based life sciences company with the intention of making advanced biofuels a reality by next year.

POET has announced a joint venture with Royal DSM to commercially demonstrate and license cellulosic bio-ethanol based on their proprietary and complementary technologies. POET–DSM Advanced Biofuels, LLC, is scheduled to start production in the second half of 2013 at one of the first commercial-scale cellulosic ethanol plants in the United States.

The two partners will produce cellulosic ethanol from corn crop residue through a biological process using enzymatic hydrolysis followed by fermentation. The first commercial demonstration of the technology will be at Project Liberty, which is currently being constructed adjacent to POET’s existing corn ethanol plant in Emmetsburg, Iowa. The initial capacity is expected to be 20 million gallons in the first year, growing to approximately 25 million gallons per year.

DSM and POET will each hold a 50% share in the joint venture, which will be headquartered in Sioux Falls, South Dakota. The initial capital expenditure by the joint venture in Project Liberty will amount to about $250 million. The closing of the joint venture is subject to regulatory approvals and other customary closing conditions.

As a result of the joint venture project, POET has also announced its intent to decline the $105 million loan guarantee it was awarded by the U.S. Department of Energy (DOE) in September. POET will officially decline the guarantee prior to drawing any funds when the joint venture closes.

Listen to some comments from DSM Managing Board Chairman/CEO Feike Sijbesma and POET CEO Jeff Broin and questions from media during a telephone press conference today: POET-DSM press conference

An advanced biofuels project in Iowa is being offered support from the federal government for a plant to make fuel from waste material.

The U.S. Department of Agriculture has approved a conditional commitment for a $25 million guaranteed loan under the Biorefinery Assistance Program for Fiberight to build a biorefinery in Blairstown, Iowa.

The loan will be used to construct a 55,000 square foot facility that will produce cellulosic ethanol by converting municipal solid waste and other industrial pulps into advanced biofuels, as well as using conventional renewable biofuel derived from seed corn waste. When operational, the facility is expected to produce approximately 3.6 million gallons of cellulosic ethanol per year. The process will use a cellulosic microbe to produce up to 15 percent more ethanol than traditional fermentation technology, and reduce energy inputs in the fermentation and distillation process. Fiberight estimates the project will create 38 jobs and save 16 jobs.

”Advanced Biofuels are going commercial – and the innovation behind turning trash into biofuels demonstrates how our industry can create jobs and solve our nation’s energy needs,” says Adam Monroe, President of Novozymes North America. ”Novozymes is proud to be a partner to this project, supplying the enzymes to turn household and office waste into advanced biofuels. We applaud the federal government for its leadership in helping bring biofuels to market.”

Biotech company Novozymes is one of Fiberight’s partners in the project. ”Advanced Biofuels are going commercial – and the innovation behind turning trash into biofuels demonstrates how our industry can create jobs and solve our nation’s energy needs,” says Adam Monroe, President of Novozymes North America.

Under the conditional commitment, Fiberight must meet specified conditions before the loan guarantee can be completed. Other funding comes from the State of Iowa. Fiberight also received a $2.5 million grant from the Iowa Power Fund in 2010. The company will work with the Benton County landfill to supply a portion of the feedstock for the project. The total project cost is estimated at $59.5 million. Fiberight, LLC was incorporated in 2007 for the purpose of converting an existing ethanol facility into a cellulosic ethanol facility in Blairstown.

Florida State Representative Debbie Mayfield dumped a load of sugarcane waste to dedicate a new pilot biorefinery this week in honor of her late husband, Stan Mayfield.

The dedication ceremony involved Mayfield pulling the lever on a front-end loader to dump a pile of pulverized sugarcane stalks, officially delivering the first shipment of feedstock to the facility, which will now be known as the Stan Mayfield Biorefinery Pilot Plant. The plant is located in Perry, Florida and is a cooperative venture between the University of Florida’s Institute of Food and Agricultural Sciences and Buckeye Technologies Inc. The facility will be operated as a UF/IFAS satellite laboratory researching the use of inedible plant material to produce fuel ethanol, such as sugarcane waste.

When fully operational, the biorefinery will produce up to 400 gallons of fuel ethanol and 5,000 pounds of organic acids for bioplastics each day. Some of the researchers’ goals include testing a wide variety of feedstocks, such as crop residues and yard waste, and finding ways to save money on production costs.

Stan Mayfield was a member of the state House of Representatives from 2000 until his death in 2008 and was instrumental in securing a $20 million appropriation from the Florida Legislature to fund the biorefinery. A UF graduate, Mayfield was a strong advocate of renewable fuels, environmental protection and economic growth.

In response to recent media reports about cellulosic ethanol shortfalls, including a story in the New York Times, the advanced ethanol industry is stressing that progress is being made.

“In a very difficult financial and policy environment, the first wave of commercial advanced ethanol production facilities are under construction in a number of states across the country,” said Advanced Ethanol Council Executive Director Brooke Coleman. “Diversifying America’s fuel supply with increasing amounts of clean, domestically produced renewable fuel requires us to keep our eyes on the prize and not be distracted by the noise and misdirection coming from naysayers protecting the status quo.”

Coleman acknowledges that targets for cellulosic ethanol under the Renewable Fuel Standard (RFS) have had to be revised downward from initial expectations, but says the RFS is working to help diversify the nation’s fuel supply.

The U.S. Environmental Protection Agency (EPA) is required by Congress to adjust the RFS cellulosic biofuel blending volumes based on forecasted future available supplies. For both 2011 and 2012, EPA reduced those volumes by over 90 percent to provide relief for regulated parties and simultaneously implement the very type of credit system the oil industry requested to address the inherent market uncertainties of deploying new fuel technologies in the marketplace.

ZeaChem Inc., a developer of biorefineries for the conversion of renewable biomass into sustainable fuels and chemicals, has completed construction and begun operations of the core facility for its new integrated demonstration biorefinery in Boardman, Oregon.

The core facility will produce the intermediate chemicals acetic acid and ethyl acetate, which are high-value products for applications including paints, lacquers and solvents. ZeaChem will sell bio-based chemicals to commercial and industrial customers seeking renewable and cost-competitive alternatives to petroleum-sourced chemicals. The facility will employ 25 full-time operations staff.

ZeaChem is further developing its integrated biorefinery through implementation of a second project to add the capability of using cellulosic biomass on the front end and converting ethyl acetate into ethanol on the back end. This separate “bookends” project is currently underway and supported by a $25 million grant from the U.S. Department of Energy (DOE). Once operational in 2012, it will result in the production of up to 250,000 gallons per year of cellulosic ethanol.

“Beginning operations at the core facility is another indication that ZeaChem continues to successfully execute its strategic roadmap,” said Jim Imbler, president and chief executive officer of ZeaChem. “Our phased development approach minimizes risk by allowing us to produce marketable products as we scale up our biorefining operations. We will continue to build out our biorefinery platform to produce a broad portfolio of sustainable and economical chemicals and fuels derived from cellulosic biomass.”

In addition to this work, ZeaChem, headquartered in Lakewood, Colo., has been named, “This Week’s Colorado Company to Watch,” for the company’s work in growing their business of building bio-refineries that produce advanced biofuels and bio-based chemicals.

Two companies have teamed up to develop advanced feedstocks for biofuels, biopower and biobased products.

The collaboration between DuPont and the bio-based firm NexSteppe will be working on new feedstocks for renewable energy, including sweet sorghum and high biomass sorghum hybrids.

Under the agreement, DuPont has made an equity investment in NexSteppe, and through its Pioneer Hi-Bred business, will provide knowledge, resources and advanced technologies to help the company accelerate the breeding and commercialization of new hybrids of these crops in the United States and Brazil.

“We’re using science-based innovation and collaboration to develop scalable, sustainable feedstock options for the biobased industries,” said John Bedbrook, vice president for DuPont Agricultural Biotechnology. “Collaborations like this one with NexSteppe will provide new opportunities for growers to address the rising demand for secure, environmentally sustainable and affordable alternatives to fossil fuels.”

“Sorghum is a crop with significant genetic diversity and great potential that has received relatively little research attention and funding,” said Anna Rath, NexSteppe founder and CEO. “Combining DuPont’s world-class research and development capabilities with our industry knowledge, experienced team and singular focus, we will be able to rapidly improve the crop to produce feedstocks tailored to the needs of the biofuels, biopower and biobased products industries.”

Sorghum has many advantages as a feedstock. It is naturally tolerant to both drought and heat and can grow in marginal rainfall areas with a short growing season and the ability to work in crop rotation systems. Sweet sorghum can be used as a complement to sugarcane in existing Brazilian sugar to ethanol mills, and as a feedstock for advanced biofuels and other biobased products produced from sugars. High Biomass Sorghum is a high-yielding crop that can be used as a feedstock for biopower and cellulosic biofuels. DuPont, through its Industrial Biosciences business, operates and develops industrial processes that use sugar as a feedstock.

Global chemical giant BASF has invested $30 million in a Pennsylvania-based company that has developed a process to produce cellulosic sugars for renewable chemicals and biofuels.

BASF, through subsidiary BASF Biorenewable Beteiligungs GmbH & Co. KG led a $50 million financing round in the technology firm Renmatix Inc.

Renmatix has developed the patented Plantrose™ platform whereby industrial sugar can be produced from lignocellulosic biomass (wood, cane trash or straw). In the Plantrose technology, biomass is split into cellulose and sugar in supercritical water at high temperature and pressure in a two-step process.

Industrial sugars are important renewable resources for the chemical industry and can be used, for example, to produce biofuels or basic chemical products and intermediates by fermentative processes. The availability of industrial sugars in sufficient quantities and at favorable cost is therefore important for the competitiveness of the products.

With $80 million from the U.S. Department of Energy, Mascoma Corporation, a renewable fuels company based in New Hampshire, will design and construct a commercial-scale hardwood cellulosic ethanol facility in Kinross, Michigan.

Mascoma and the DOE signed an agreement that provides up to $80 million in funding for the facility. These funds are an addition to $20 million previously awarded by the DOE for research and development for this project. The agreement includes a cost-sharing arrangement under which the DOE will contribute to the costs for construction of the facility, and the balance of the construction costs will be funded by Valero Energy Corporation and a grant from the State of Michigan.

The Kinross facility will use Mascoma’s proprietary CBP technology platform, which has been developed by Mascoma over the past five years, to convert hardwood pulpwood into ethanol. Hardwood pulpwood is a selectively harvested, naturally regenerated feedstock and is an underutilized, abundant resource in the surrounding area. Construction of the Kinross facility is anticipated to start in the next three to six months and is expected to be completed by year-end 2013. Kinross Cellulosic Ethanol LLC, a joint venture formed by Mascoma and Valero, will develop and operate the Kinross facility.

“We are excited to apply our proprietary consolidated bioprocessing (CBP) technology platform to produce cellulosic ethanol on a commercial scale and thereby provide a low-cost, sustainable alternative to petroleum-based products,” said Bill Brady, President and CEO of Mascoma.

Cellulosic ethanol continues to be out of reach for commercial use, according to the latest Renewable Fuels Standard (RFS2) requirements set by the Environmental Protection Agency for 2012.

“EPA has essentially reduced the mandate for cellulosic, recognizing the fact that there aren’t supplies out there to meet it,” said USDA chief economist Joe Glauber.

Back in 2007, Congress set a goal of 500 million gallons of cellulosic ethanol to be produced in 2012, but only a very small fraction of that is now expected to come to fruition with a target of just 8.65 million gallons. “The big question that’s been out there for years is ‘when will cellulosic ethanol become profitable?’ said Glauber. “I don’t think anyone sees that coming anytime soon, although a few of these plants are expected to come on line in the coming year, so we’ll see.”

In order to project cellulosic biofuel production for 2012, EPA tracked the progress of over 100 biofuel production facilities, the methodology of which is clearly outlined in the official 97-page final rule document. Companies that EPA determined were likely to produce significant quantities of cellulosic biofuel in 2012 include (with projected ethanol-equivalent gallons):

KiOR – a Mississippi-based renewable crude oil project (4.8 million)
INEOS Bio of Vero Beach – waste to biofuel (3 million)
Fiberight – a waste-to-biofuel project in Blairstown, IA (2 million)
American Process, KL Energy and ZeaChem for a total of less than a million gallons combined.

EPA noted the importance of setting a cellulosic standard that was realistic, yet still encouraged investment in the technology. “Thus while any standard we set for cellulosic biofuel standard for 2012 will have some uncertainty in terms of actual attainment, our intention is to balance such uncertainty with the objective of promoting growth in the industry.”

EPA has set the “advanced biofuels” target for 2012 at 2 billion gallons, much of that being comprised of imported sugarcane ethanol from Brazil.

Read EPA’s full explanation of the RFS2 requirements justification.

After nearly a month delay, the Environmental Protection Agency (EPA) today released final Renewable Fuel Standard (RFS2) requirements for 2012.

The final 2012 overall volumes and standards are:

Biomass-based diesel (1.0 billion gallons; 0.91 percent)
Advanced biofuels (2.0 billion gallons; 1.21 percent)
Cellulosic biofuels (8.65 million gallons; 0.006 percent)
Total renewable fuels (15.2 billion gallons; 9.23 percent)

The percentage standards for four fuel categories are required by the Energy Independence and Security Act of 2007 (EISA).

Advanced biofuel producers are calling on Congress to take action now to ensure that tax incentives for cellulosic ethanol continue past 2012.

In a letter to Congressional leaders, the Advanced Ethanol Council (AEC) asked for a multi-year extension of the Cellulosic Biofuels Producer Tax Credit (PTC) and the Special Depreciation Allowance for Cellulosic Biofuel Plant Property, both of which are set to expire December 31, 2012.

AEC Executive Director Brooke Coleman noted in the letter that the incentives “are vital to the ongoing development of the domestic advanced ethanol industry. To ensure stability in the marketplace, and prevent unnecessary job losses, Congress should provide long‐term extensions of these provisions (5+ years).”

As new ethanol biorefineries are beginning construction, the AEC emphasized the importance of consistent federal policy to this kind of multi-billion dollar investment.

The AEC is asking Congress to extend these important tax incentives this year as part of a final tax extenders package as they are set to expire next year. “As Congress considers the extension of a number of tax provisions for the clean energy sector, we would also like to highlight the importance of timing. The mere prospect of the expiration of the PTC and Special Depreciation Allowance for cellulosic biofuels in 2012 will start to affect projects that take 18 months to build, and could drive our industry into a series of ‘fits and starts’ that has dampened investment in other domestic clean energy sectors for decades.”

The president of biofuel enzyme producer Novozymes last week called on a House subcommittee to explore alternatives to drilling for oil to meet the country’s energy needs.

In a written statement prepared for the House Committee on Natural Resources’ Subcommittee On Energy and Mineral Resources, Adam Monroe encouraged the committee “to explore renewable fuels: new technology and innovation already making an impact on our energy supply and economy. American biofuels are reducing energy costs and creating jobs. They can also help realize savings that can be directed to our infrastructure needs. These savings can be directed towards America’s other pressing problems – in this case, the Committee’s concern about our roads, bridges, tunnels and other aging infrastructure.”

“For America to meet its energy challenges, we believe it is critical to view renewable fuels for cars, trucks and other vehicles as integral links in the country’s fuel supply. The technology and cost-savings they create are here – all we need now is continued public support,” Monroe concluded.

Researchers at the University of Georgia have developed a “super strain” of yeast that can efficiently ferment ethanol from pretreated pine.

“Companies are interested in producing ethanol from woody biomass such as pine, but it is a notoriously difficult material for fermentations,” said Joy Doran-Peterson, associate professor of microbiology in the Franklin College of Arts and Sciences.

Their research, published online in Biotechnology for Biofuels, shows that the pine fermented with the new yeast can successfully withstand the toxic compounds and produce ethanol from higher concentrations of pretreated pine than previously published.

Read more from UGA news and see a video about this research below:

Ethanol industry leader POET is making “tremendous strides” in the development of ethanol from biomass for commercial use, according to company CEO Jeff Broin.

Broin talked with farm broadcasters at last week’s National Association of Farm Broadcasting meeting last week in Kansas City to provide an update on Project LIBERTY, a cellulosic ethanol plant project in Emmetsburg, Iowa. “When we got into this research ten years ago, it was a long shot,” Broin said in an interview with Jody Heemstra of KWAT Radio in Watertown, SD. “Today, we’re actually less than $3 on production costs so we’re competitive with gasoline and we’re very excited about that.”

Broin says they have cut enzyme costs by about a third and are planning to use the lignin from a grain ethanol plant next door to power both plants. “We’ll have a 25 million gallon cellulosic plant next to a 50 million gallon grain plant and there will be virtually no fossil fuel used to power those facilities,” Broin says.

Listen to all of Heemstra’s interview with Broin here: Jeff Broin, POET CEO