Domestic Fuel

2011 was a pivotal year for the Domestic Fuel industry.

The renewal of the biodiesel tax incentive at the end of 2010 led to record production this year and a renewed optimism for the industry. Meanwhile, the ethanol industry saw the approval of E15 in newer vehicles at the beginning of the year, although it has yet to make it to the pump, and the end of 2011 means the end of the Volumetric Ethanol Excise Tax Credit and associated import tariff. 2011 was also a great year at the races, with NASCAR fueled with 15% American Ethanol.

The most popular renewable news stories on Domestic Fuel this year included:
Newt Gingrich wows IRFA Summit
Future of Ethanol Tax Policy
Renewable Energy surpasses Nuclear
Joule wins WSJ Award
Study Shows E15 OK in Older Vehicles
Royal Wedding Car Runs on E85
Wind Industry takes steps to Protect Wildlife

Traffic was up another 3.5% in 2011 on Domestic Fuel with a total of almost 325,000 unique visitors. We also now have nearly 1700 followers on Twitter (@DomesticFuel). There were over 1320 posts on Domestic Fuel this year, including 140 with audio interviews, podcasts and recorded press conferences. We covered the Iowa Renewable Fuels Summit, National Biodiesel Conference, National Ethanol Conference, Advanced Biofuels Leadership Conference, USDA and EPA Tour of REG, NASCAR STP 300 in Chicago, STP 400 in Kansas City, Iowa Corn Indy 250, Garnett Ethanol Boat Race, Fuel Ethanol Workshop and the RFA Sponsorship of the Sturgis Motorcycle Rally.

As we enter a new Domestic Fuel era, we wish all of our readers, sponsors and friends a healthy, happy, prosperous and blessed new year!

ZimmComm New Media is proud to announce the very first (that we know of) Ag Events Calendar.

This slick 10×15 wall calendar includes dates for all the major ag-related and biofuels events in 2012, along with photos each month from the 2011 events that we covered. There’s photos from the National Biodiesel Conference, National Ethanol Conference, Commodity Classic, Iowa Corn Indy 250, American Ethanol NASCAR, Farm Progress Show and much more.

We ordered a limited number of the calendars to give to some of our clients for Christmas, but then discovered that there are lots of other folks out there who would like to get a copy, so we are ordering more and offering them for sale.

For just $20 each plus $2 shipping/handling, you can get your very own 2012 Ag Events calendar here:

Order 2012 ZimmComm Ag Events Calendar.

The winner of this year’s Merle Anderson Award goes to USDA Under Secretary for Rural Development Dallas Tonsager for his support of the ethanol industry. The honor was given by the American Coalition for Ethanol (ACE) following their ethanol conference. Tonsager, who said he was pleased to win the award, was honored for his lifetime commitment to the promotion of both agriculture and the renewable fuels industry and more specifically, his work on implementing the Rural Energy for America Program (REAP).

The REAP program is currently helping retailers in rural communities install E85 pumps and blender pumps which offer consumers various blends of ethanol that oftentimes include E20, E30 or E40.

“I am excited to receive this honor that recognizes the work that USDA is doing to help our nation develop home-grown energy that creates jobs, helps to break our dependence on foreign oil, and moves our nation towards a clean energy economy,” said Tonsager.

Merle Anderson was the founder and first president of ACE and currently serves as Chairman Emeritus of the ACE board of directors. Brian Jennings, ACE executive VP added, “His work in developing blender pump infrastructure has been tireless and Dallas has always been a champion for the ethanol industry. It means a lot for rural America to have Dallas working in Washington on behalf of agriculture and the ethanol industry,” Jennings said.

POET had announced that they are now selling antibiotic-free dried distillers grains (DDGS) with solubles. Today, they sell more than 4 million tons of Dakota Gold DDGS to a variety of feed markets. On occasion, fermentation can be disrupted due to things such as a bacterial infections, and an antimicrobial agent can be used to control the contamination.

Over the last few years, POET has developed and tested a new process that eliminates the need for antibiotics to control fermentation disruptions. The testing was done with participation of egg-farming customers and support from the United Egg Producers (UEP).

“POET partnered with UEP in a recently completed study showing that adding DDGS to layer diets can dramatically reduce ammonia emissions from the farm,” said Chad Gregory, Senior Vice President at United Egg Producers. “Their antibiotic-free process is another example that demonstrates POET’s commitment to animal agriculture.”

Mark Giesemann, Ph.D., Director of Technical Services at POET Nutrition added, “Since it was introduced more than 15 years ago, Dakota Gold has built a reputation for consistency and quality. “We had to ensure that any adjustments in our process didn’t compromise that reputation. After a few years of testing and development, we’ve found that the DDGS from the antibiotic-free process are of the highest quality.”

Paul Predaris has joined Renewable Energy Group (REG) as the company’s new Biodiesel Sales Manager. In his role, he will oversee the company’s Bioheat development of the biodiesel market in the Northeastern United States. This part of the country is rapidly adopting Bioheat for home heating and Predaris will closely work with home heating oil and petroleum distributors as well as terminal owners to expand the market.

“Bioheat and biodiesel demand in the Northeast is rapidly expanding due to progressive state and local energy policy and the Renewable Fuels Standard. As America’s largest biodiesel producer, we are committed to focusing our nationwide distribution and logistics resources in this region and the addition of Predaris to our team is evidence of that commitment,” said REG Vice President of Sales and Marketing, Gary Haer.

“Predaris’s extensive experience in the region and knowledge of the biodiesel industry allow him to effectively partner with down-stream supply chain partners in making Bioheat and biodiesel more widely available,” he added.

Prior to joining REG, Predaris spent nearly 15 years with Sprague Energy Corporation in Portsmouth, New Hampshire. He has also served on the board of directors for several state oil and heat councils and associations.

ICM has announced that it has entered into a technological partnership to couple its gasification system with EISENMANN Corporation’s dual-field wet electrostatic precipitation (WESP) technology. This technology was proven successful at ICM’s commercial-scale demonstration gasifier located adjacent to the Harvey County municipal solid waste transfer and recycling facility in Newton, Kansas.

The gasifier underwent several performance tests with multiple feedstocks including but not limited to refused-derived fuel (RDF), tire derived fuel mixed with RDF, wood chips, wheat straw, switchgrass, and corn stover. Combined with ICM’s thermal oxidizer and heat sink, the WESP 2-F system cleans removes all particulate matter as well as acid gases from a variety of fuel sources and meets all levels of emission control requirements.

“We’re thrilled with the recent commercial deployment of our biomass gasifier technology, as it allows us to offer our waste-to-energy system on a global level,” said ICM CEO Dave Vander Griend.”Recognizing the strength of collaborative partnerships, ICM is pleased to work with EISENMANN and their WESP technology to enhance our biomass gasifier applications.”

A court date has been set for August 22 with Judge Larry McKinney in the U.S. District Court in the Southern District of Indiana to hear arguments in the consolidated GreenShift patent infringement case. Fifteen ethanol plants have been named in the suit as well as several other companies including ICM, GEA Westfalia Separator, GEA Mechanical, and Flottweg Separation Technology.

As the date approaches, ICM has publicly stated that they are continuing to offer corn oil extraction solutions for the ethanol industry. Earlier this summer, the company filed a non-provisional patent application with the U.S. Patent and Trademark Office (USPTO) for its Advanced Oil System and is also offering its Tricenter Oil Separation System.

“We offer products, technology and services to ethanol plants that are designed to increase the revenue to the plant from each bushel of corn,” said Chris Mitchell, Executive Vice-President of ICM. “Our focus is on the success and viability of our customers. Our oil extraction offerings are examples of this focus.”

Mitchell continued, “We offer the systems on a non-royalty bearing basis with a strong return on investment for the customer. We also offer full indemnification from patent infringement as part of each sale. While we prefer to focus on the benefits of ICM’s technology, we feel compelled to respond to a press release issued by GreenShift Corporation on July 25, 2011.”

According to ICM, the press release pointed to a notice of allowance from the USPTO for GreenShift’s patent application number 11/241,231, titled “Method of Processing Ethanol Byproducts and Related Subsystems,” and the company made “legal characterizations and conclusions with respect to the action of USPTO.”

Brian Burris, General Counsel of ICM, stated in an ICM press release that they are confident that the GreenShift patents will be declared invalid and stress that ICM’s current corn oil technologies fall outside all patent claims. “While our company policy is not to comment on matters in current litigation, ICM felt it is necessary to clarify to the industry statements made by GreenShift,” added Burris.

Butamax has been granted another patent - number 7,993,889. This patent protects foundational methods for low-cost production of biobutanol. Currently, Butamax has over a hundred patent applications pending in addition to those already granted and several of the applications are under accelerated review in the USPTO Green Technology Pilot Program. The company says its intellectual property encompasses advances in technology across the renewables value chain including the production, purification and use of biobutanol as a renewable fuel component.

“The strength of Butamax’s patent portfolio is a testament to our company’s innovation capability and is a critical asset as we commercialize the most significant new fuel molecule since ethanol,” said Paul Beckwith, CEO of Butamax.

Peter Matrai, COO of Butamax added, “Butamax’s comprehensive intellectual property estate offers licensees a unique commercial opportunity underpinned by a fully proprietary technology package.”

In other Butamax news, they announced the filing of a second patent infringement against Gevo, Inc. for its unlawful use of Butamax biobutanol technology. The lawsuit was filed in the U.S District Court in the District of Delaware and is based on Gevo’s infringement of U.S. patent no. 7,993,889 that was granted to Butamax just this week.

Beckwith said of the patent infringement, “The success of any new technology start-up is dependent on protection of innovation. It is our obligation to assert our intellectual property rights in order to defend value for our partners and to protect the viability of this emerging industry.”

POET Biorefining – Caro has received the 2011 Green Agri-Business Designation from the Michigan Agri-Business Association. The ethanol plant received the award for its efforts to integrate environmental practices into its operations. The award focuses on efforts by companies to protect Michigan’s natural resources, conserve energy and reduce impact on water land and air.

“The Michigan Agri-Business Association wants to shine a light on the many agricultural businesses that are doing the right thing, and keeping Michigan’s natural resources strong and healthy,” MABA President Jim Byrum said. “Conservation, sustainability and energy efficiency are a way of life for these Michigan businesses, saving both money and resources. These businesses are good for both our industry and Michigan’s future, and we want to highlight their efforts.”

To reduce water use while improving water quality, POET Biorefining – Caro uses a total water recovery system to eliminate wastewater discharge and a waste heat recovery system that recycles both heat and water. It uses the Load Toad DDGS loader to get more product onto each rail car and conducts a recycling program.

David Gloer, GM of POET Biorefining – Caro added, “We produce renewable fuel, so reducing waste and energy use is a natural focus for POET Biorefining – Caro,” General Manager David Gloer said. “It’s a great honor to be recognized by the MABA for those efforts.”

Peter Matrai has joined Butamax Advanced Biofuels as the company’s new Chief Operating Officer (COO). He will be responsible for the development and implementation of Butamax strategy and business plan. He will also be in charge of leading the company’s global commercial team which is currently engaged in activities in the U.S., Brazil, Europe and Asia.

Prior to joining Butamax, Peter spent five years with BP Biofuels where he was as a Strategy Advisor in London. In this role he was a key contributor to the development and implementation of BP Biofuels’ global strategy. Most recently, he led the development of a sustainable and scalable ligno-cellulosic biofuel business opportunity for BP in North America. In addition, Matrai’s has substantial experience in finance, mergers and acquisitions, emerging market investments, asset management, diplomacy, and public-private partnerships.

“Peter has an impressive track record for development and execution of commercial strategy. His deep understanding of biofuels, coupled with his experience of building successful new ventures, make him a powerful addition to the Butamax management team,” said Paul Beckwith, Chief Executive Officer of Butamax.

Amyris is now partnering with Kuraray Co. to develop innovative polymers from Biofene, a renewable hydrocarbon building block that is produced from their technology. As part of the partnership, Kuraray will use Biofene to replace petroleum-derived feedstock such as butadiene and isoprene in the production of certain polymers. Upon the success of the product, the two companies will then enter into a supply agreement for Kuraray’s exclusive use of Biofene in these polymer products.

“We are very excited to partner with Amyris, a leading renewable products company, to develop innovative polymer products with Biofene,” said Yasuhiro Yamamoto, director and senior executive officer of Kuraray. “We are confident the new Biofene polymer products will become important additions to our product portfolio and be an integral part of our growth strategy.”

Amyris CEO John Melo added, “We are committed to bringing innovative, high-performing and sustainable products to the polymers market. Partnering with an industry leader like Kuraray allows us to expand the use of Biofene to produce high-performance polymers as well as strengthen our timely and successful route to market.”

Butamax announced today the changing of the guards with Paul Beckwith taking over the reigns as CEO. Beckwith will be leading the company into its next phase of commercial development in biobutanol. He succeeds Tim Potter, who served as CEO for Butamax during the company’s start-up phase that began in 2009. Butmax is a partnership between DuPont and BP and is international in scope.

During the past few months, Butamax says it has progressed in its commercialization and is preparing to launch biobutanol as a renewable transportation fuel. With Beckwith’s expertise in bringing new products to market, he was chosen to lead the team. He has 27 years of experience in the fuel sector and led the market introduction of multiple major new fuels products in the United States and Europe, together with development of BP’s long-term global fuels product strategy. Prior to this promotion, Beckwith was a member of the Butamax leadership team and in this role led development of the company’s strategy.

“I want to thank Tim for his many contributions over the last two years in establishing Butamax as a leader in biofuels and wish him every happiness,” said Butamax Board Chairman Jan Koninckx. “Tim’s leadership during the formation and early development of the company has resulted in the generation of great passion and enthusiasm for biobutanol and Butamax. He has positioned the company for the next stage in the company’s commercialization and hands over to Paul Beckwith, who, with unrivalled experience of bringing new fuels products to market, is ideally suited to lead Butamax as we enter the commercial launch phase.”

Green Plains Renewable Energy announced today its acquisition of a grain storage facility located in Hopkins, Missouri. The grain storage facility can house up to 2 million bushels of grain and was formerly owned by Horizon Grain of Hopkins, Inc and GS Grain LLC. The grain elevator is located about 45 minutes from Green Plains’ ethanol biorefinery in Shenandoah, Iowa.

“Expanding our agribusiness operations to further diversify our revenues and cash flows remains a priority for us in 2011,” stated Todd Becker, President and Chief Executive Officer. “The close proximity to our ethanol production and grain facilities in southwest Iowa makes this elevator a solid fit within our business platform. Combining this acquisition with our existing storage capacity and the announced expansion of our Tennessee grain assets, we will have 35 million bushels of grain storage capacity within our agribusiness segment by this fall’s harvest. We continue to look for additional acquisition opportunities to grow our agribusiness segment.”

Principal Solar, Inc. (PSI) has announced its acquisition of Capstone Solar, a news and networking site geared to solar professionals. Terms were not disclosed but Principal Solar said the deal fits within their unique company solar strategy. Capstone Co-Founder Dan Bedell said it is great to find a group of people so committed to the advancement of solar power as the PSI team and he believes the company has the wherewithal to bring its vision to fruition.

“We look forward to combining Capstone’s interactive web conferences and dynamic communities with the existing resource base of PSI’s Definitive Solar Library—an online library that is under development and dedicated exclusively to the solar industry,” said Rick Borry, co-founder of Capstone and chief technology officer at PSI.

Michael Gorton, CEO and Chairman of PSI added that with the favorable and competitive cost of photovoltaics he has complete confidence that his company’s model will be a “unifying force” for making solar energy available worldwide.