Domestic Fuel

Shell has become the first retailer to begin selling cellulosic ethanol in Ottawa, Ontario made from wheat straw. The E10 blend will be available for one month, beginning today, at all Shell stations across the city. The advanced biofuel is produced locally from non-food raw materials at Iogen Energy Corporation’s demonstration plant, using advanced conversion processes. Iogen and Shell are partners in the plant, which now produces 40,000 liters of fuel per month.

While all ethanol reduces carbon dioxide, cellulosic ethanol can reduce CO2 tailpipe emissions by up to 90 percent as compared to gasoline. Shell has been working for several years, in conjunction with Iogen, to develop and bring to market advanced biofuels.

“I am excited we are leading the pack in cellulosic ethanol production technology and, with this event, showing what is possible in the future,” said Dr. Graeme Sweeney, Shell Executive Vice President Future Fuels and CO2. “While it will be some time before general customers can buy this product at local service stations, we are working with governments to make large-scale production economic.”

Iogen’s CEO, Brian Foody noted that, “With the volumes we’re producing today, we’re confident about the future.”

Many drivers across the country are getting frustrated as gas prices are on the rise and oil prices have surpassed $70 a barrel. Algae production may be a good replacement for oil and today, OriginOil, Inc., announced that it has filed for a Patent Cooperation Treaty (PCT) on its technology to convert algae to renewable oil. The renewable oil could be used to replace diesel, gasoline, jet fuel, plastics, and solvents.

A challenge that has faced researchers on the culturing of microalgae has been light utilization. According to a company representative, “The invention addresses challenging problems in the culturing of microalgae, including high energy utilization, fouling of light emitting surfaces, and diurnal growth cycles.” To mix metaphors, in a nutshell, this technology allows the algae to have access to the light throughout the photobioreactor, rather than just on the surface.

The filing describes system and methods for enhancing mass production of microalgae, involving the use of light arrays. The systems and methods are useful in applications such as energy production, fuels, foods, pharmaceuticals, plastics, and CO₂ fixation.  Also described are systems and methods for lysing (rupturing) cells and extracting their components, and for producing electricity with closed-loop CO₂ recycling.

Vikram Pattarkine, PhD joined the OriginOil team as the chief technology officer and oversees the company’s research program. Pattarkine noted, “The pace of development at OriginOil has been extremely rapid. With this filing, we have consolidated our intellectual property protection at the international level in a number of areas of innovation at OriginOil.”

Earlier this year, OriginOil announced that it had finalized a deal with the Department of Energy’s National Laboratory to validate and commercialize the technology. The company has also been awarded Biofuels Digest’s Top 50 award as a top company changing the face of the biofuels industry.

The wind and solar industry continues its rapid growth in the U.S. with the  announcement that Oneworld Energy, a company that focuses on wind and solar power installations, is expanding is presence. It will be opening an office in Melville, NY and has tapped Roger Slotkins as CEO. Melville has developed a green-tech corridor that focuses on bringing companies and employees together in the clean-tech industry. A tremendous asset to the city has been the support of Congressman Steve Israel.

Congressman Israel noted, “My goal is to see Long Island become the nation’s capital for clean energy. Oneworld is an example of the companies within the alternative energy industry we are attracting to our growing green-tech corridor. These businesses are bringing new green jobs for New Yorkers while also improving our environment and decreasing our dependence on foreign oil.”

Formed in 2003, Oneworld Energy is comprised of three divisions: Oneworld Solar, Green Breeze Energy (wind) and Composotech Structures (wind services).  In the States, Composotech Structures currently provides maintenance and repair services for wind turbine blades and is also developing a 200 MW wind farm in Oklahoma.

Mr. Allen, President and CEO of Oneworld, commented, “Given our desire to increase our presence in the U.S., Roger’s track record within the clean-tech industry will be a perfect complement.”

National Wind, LLC, based in Minneapolis, Minnesota, has received the 2009 Minnesota Environmental Initiative (MEI) Green Business and Environmental Management Award. The award recognizes National Wind’s for partnering with communities to build utility-scale wind farms. MEI is a nonprofit organization whose mission is to build partnerships that create solutions to environmental problems throughout Minnesota.

MEI’s Executive Director, Mike Harley congratulated National Wind. “National Wind’s partnerships with communities are excellent examples of green business developments that help preserve the environment for future generations. Their grassroots wind energy projects start with local communities. By creating opportunities for community members to influence the development process and own a stake in the project, National Wind engenders broad support for clean energy and environmental stewardship.”

National Wind is currently developing twelve families of wind projects across the Midwest and Plains States. The company has more than 1000 landowner partners and over 1300 megawatts (MW) of locally-owned wind projects in development or operation in Minnesota alone. The key component to their success is that they offer joint ownership with local landowners to develop utility-scale wind farms. This enables local communities to have a positive financial stake in their investment in renewable energy.

Leon Steinberg, the CEO of National Wind was on had to recieve the award along with sevearl members of his team. “We have accepted this award on behalf of our 50 employees, our 450 rural farmer-partners and the thousands of landowners that will participate in our projects. Without all of their involvement, this award would not be possible. We want to acknowledge MEI’s success in building consensus to tackle important environmental issues. We also want to thank the utility sponsors of the 2009 awards, namely Great River Energy, Xcel Energy and Minnesota Power.”

Solazyme, Inc., a company that develops technologies for renewable oil production, is in the process of testing sugars that are produced through a patented process designed by BlueFire Ethanol Fuels, Inc. The goal of the technology is to test the compatibility with Solazyme’s renewable oil process to produce the oil cost effectively and at commercial scale production. The sugars used in the process are produced through non-food cellulosic waste.

Arnold Klann, CEO of BlueFire Ethanol Fuels forecasts great results. “Our technologies are a great fit for each other,” he said. “Our patented acid hydrolysis process allows BlueFire Ethanol to utilize a variety of non-food feedstocks to produce sugars that can be used to make a variety of different types of fuels and chemicals. Supplying these low cost sugars to Solazyme’s technology provides them with the option of creating a variety of oils for the renewable energy industry and beyond.”

BlueFire Ethanol is currently focused on developing its first ethanol biorefinery in Lancaster, California. The Lancaster facility will use post-sorted cellulosic wastes diverted from landfills in Southern California to produce 3.9 million gallons of fuel-grade ethanol per year. The company was also awarded $40 million from the U.S. Department of Energy for construction of a second plant in Southern California, and has received the first installment of funding from the DOE for the development of the BlueFire Mecca, LLC plant in Southern California.

In addition to the production of renewable oil, Solazyme is also a leading algal synthetic biology company.  The renewable oil produced from algae will not only be used as a replacement for fossil fuels, but also in cosmetics and cleaning supplies that have traditionaly used petroleum as an ingredient.

There are many opportunities and challenges facing the renewable energy industry. To achieve long-term success, one of the greatest hurdles the industry must overcome is garnering consumer support and product adoption. This has been tough for the corn-ethanol industry in part, due to media hostility and biased reporting.

So what is the most effective way to communicate your message to ensure your technology survives in a crowded marketplace? 

This question and more will be answered in the Communicating Renewables Webinar Series. This program is designed for those involved in or seeking information about the alternative energy arena. The webinar series is designed specifically to help arm communications professionals with the tools they will need to approach, head on, the challenging task of getting the positive message about renewable energy, technologies and research out to consumers, stakeholders, policy leaders, and the media.

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Duke Energy continues to expand its renewable energy portfolio with the acquisition of a 70-magawatt wind power project in Pennsylvania known as the North Allegheny Windpower Project. Gamesa Energy USA was the original wind turbine manufacturer and project developer. 

This marks the first wind energy project for Duke Energy in the Eastern US; however, they have other wind projects including selling wind power to WalMart stores in Texas. The North Allegheny project consists of 35 Gamesa wind turbines, each  capable of producing two megawatts (MW) of electricity. This purchase will give the company more than 700 MW of wind-powered generation by the of 2009. 

Wouter van Kempen, president of Duke Energy Generation Services (DEGS), which is a business unit of Duke Energy that owns and develops renewable power assets, said in a company statement today, “The purchase of the North Allegheny Windpower Project in Pennsylvania marks a milestone for Duke Energy and its renewables business. This acquisition immediately expands our wind  power portfolio beyond the western U.S., where we have half a dozen projects already in operation or under construction.”

Once the project is complete, Duke energy will sell all the energy generated from the wind turbines to FirstEnergy. The wind farm is expected to be online by the end of this year.

Pacific Ethanol, Inc. announced today that its has filed for Chapter 11 of the U.S Bankruptcy Code. Pacific Ethanol is just one of many ethanol plants that have filed bankruptcy protection over the past 12 months. The Company and its marketing subsidiaries, Kinergy Marketing LLC (“Kinergy”) and Pacific Ag. Products, LLC (“PAP”), have not filed for Chapter 11 bankruptcy protection. 

Pacific Ethanol is expected to continue to manage the Plant Subsidiaries under an Asset Management Agreement and Kinergy and PAP are expected to continue to market and sell the Plant Subsidiaries’ ethanol and feed production under existing Marketing Agreements. Pacific has reached a financing agreement with WestLB AG that will allow them to meet customer needs, but the financing deal still needs approval from the bankruptcy court. 

In a company statement today, Neil Koehler, Pacific Ethanol’s CEO and President said, “We have worked well with our creditors to develop a plan that we believe allows us to continue operations and meet our commitments to our customers and vendors.  We are unwavering in our vision of being a leading producer and marketer of low carbon fuels in the Western United States.  While the market environment for the ethanol industry has been challenging over the last several quarters, we remain confident that a restructured company will grow and prosper as the demand for low carbon fuels increases.” 

Pacific Ethanol’s Chairman of the Board, Bill Jones, added, “We appreciate the support of West LB, Wachovia and the work of our management team. Our objective is to move this process forward as quickly as possible so that we can maintain our focus on serving our fuel and feed markets.”

Valero continues to position itself as a growing player in the ethanol industry through its investment in Qteros (formerly SunEthanol), a Massachusetts based company who owns the Q Microbe(TM) technology which turns biomass into ethanol. The investment was established through its acquisition of certain assets of Verasun Energy. Valero purchased several Verasun Energy plants this past April.

Qteros, has developed a proprietary technology known as “C3″ (Complete Cellulosic Conversion), using the naturally occurring Q Microbe(TM). First discovered in Western Massachusetts by Qteros Founder and Chief Scientist Dr. Susan Leschine, the Q Microbe(TM) has the unique ability to transform virtually any cellulosic material into ethanol in a single step, avoiding the usual two-step process in which expensive enzymes are used to break down the biomass before it can be fermented.

In a company statement released today, Qteros’ CEO Bill Frey said, “Investment from established energy companies like Valero enables us to continue developing and scaling-up our technology. Qteros is moving ahead with our plans to open a pilot plant this year, as we continue preparations to expand to commercial scale production.” Frey was the former head of Dupont’s biofuels division.

In addition to the Valero investment, the company recently received $2 million in U.S. government appropriations towards a pilot plant it plans to open this summer in Springfield, Mass. This is one of several grants they have received from the U.S. Department of Energy. The company has also received funding from Venrock, Battery Ventures, BP, and Soros Fund Management.

Looking to take an eco-friendly vacation? Well, your resort options just got bigger with the announcement that Catalyx Inc., has been contracted to build a 100% Eco-Tourism resort owned by the Ramona Band of the Cahuilla Indian Tribe.

This energy friendly resort will be located in the Anza Valley which is near San Diego, California. It is designed to operate completely off-the-grid by employing several alternative energy technologies to meet all of its energy needs. The site will reuse much of its own waste byproducts, such as sewage, biogas and restaurant food waste, and the completed project is expected to produce 1 megawatt-Hr (1000 KW-hrs) per day of renewable energy, with propane as a back up energy source until the project is complete.

“We want to create a truly natural retreat which mirrors our ancestral heritage of living in harmony with Mother Earth,” said John Gomez, Cultural Director for the Ramona Band.“When finished, this resort will not be a burden on the environment. All energy will be renewable and all waste and wastewater will be recycled.” 

Phase one is expected to be complete in August, 2009 and is being made possible by a joint venture between the Ramona Band, the Department of Energy, the United States Department of Agriculture, and multiple other Federal agencies. Upon completion it will offer visitors a peaceful retreat and an educational experience about the Native American culture, habitat, natural remedies, and care of the environment through the use of green energy and sustainable lifestyle practices. 

Gomez noted, “This resort will be a model for other tribes to generate revenues for themselves in a more appealing manner that is true to their heritage.” 

Catalyx, Inc. will provide multiple renewable energy and water treatment technologies as well as contract with third parties for additional technologies to be used at the resort and throughout the reservation.

Two new families of ethanol production systems, or “mini-refineries” are being offered today from Allard Research and Development LLC, a company specializing in small to medium sized ethanol systems.  These systems are available in either a fully automated (EFS) or manual process technology (MES) and are designed for use in business, municipalities, agriculture, and commercial markets. 

In a company statement, Adam Allard, President of Allard Research and Development said, “Today’s product launch gives our customers a wide range of Ethanol Fuel Systems that will meet their varying output capacity demands. Our forte is the ability to turn ideas into workable products, not only in a short period of time, but cost effectively. With this new line, our customers can make their business ideas become reality.”

The automated Ethanol Fuel Systems are computer touch screen-controlled and feature a UNIX-based operating system on the primary automation computer. The Manual Ethanol Systems  utilize the same components, including the touch screen-controls, but without full automation.

The EFS and MES machines are offered in 100, 200, 500, and 1000 product models representing output gallons per day capacities. If you are looking for more ethanol output per day, the machines with larger output capacities can be custom engineered and manufactured.

Commission of Verenium's first cellulosic ethanol demonstration facility in Jennings, LA

Verenium Corporation today announced its first quarter earnings for 2009 reporting total revenues for the quarter ending March 31, 2009 at $14.4 million. Earnings are slightly down from first quarter 2008 when the Company reported $15.2 million in total revenues. 

According to a company news release, President and Chief Executive Officer, Carlos A. Riva, commented on the company’s financials by saying, “We had a strong start to 2009, beginning with the announcement of our 50/50 joint venture with BP for developing commercial cellulosic ethanol facilities. This critical partnership firmly positions us, along with BP, to be a first mover in the field of next-generation ethanol. As we look toward commercial operations, we continue to be very encouraged by the political climate and support for alternative energy and, specifically, biofuels.

Verenium has had several big announcements in the past few months including the consolidation of the company’s R&D headquarters to Jennings, LA; announced the second phase of the BP partnership to develop cellulosic ethanol from non-food feedstocks, and announced Highlands County, Florida as the location for their first commercial cellulosic ethanol facility. In addition, launched a new enzyme for the food and beverage industry called Veretase.  Visit www.verenium.com for more information about the Company’s financial report.

The American Wind Energy Association (AWEA) has recognized Proven Energy, based in the west of Scotland (U.K.), as one of the world's largest manufacturers of small wind turbines. A small wind turbine is defined as those with capacities of 100 kW and under. Proven Energy sold more than 5,800 kilowatts of wind energy worldwide in 2008, making them one of the most successful wind turbine manufacturers globally.

According to AWEA's recent small wind turbine global market study, at least 219 companies manufacture or will manufacture small wind turbines in the world. The small wind turbine market grew 78 percent in 2008 with the installation of 17,300kW of capacity. 

The company manufactures 2.5kW, 6kW and 15kW sized wind turbines for use in homes, businesses, schools, and municipalities. Replacing traditional forms of electricity generation (coal, natural gas) with a wind turbine can nearly reduce or eliminate electrical bills. The wind turbines can also provide electricity for remote applications including telecommunications sites operating in isolation of existing power. 

It's anticipated that the small wind turbine market will continue to grow as recent federal legislation offers American taxpayers a 30 percent tax credit for installing renewable energy including wind or solar. Other tax incentives are available through the Rural Energy for America Program. 

The golden dream may have become reality today as Mascoma Corporation announced a major technological breakthrough in the process strategy for production of biofuels from cellulosic biomass known as consolidated bioprocessing, or CBP. The major advantage of CBP is that is significantly reduces the cost to produce cellulosic ethanol by combining several steps into one through the use of a “super-organism”.  The high cost of cellulosic ethanol production has been a major concern facing the industry, and a barrier to entering the consumer market as a competitive fuel. This may now be a thing of the past.

CBP eliminates the need for the production of expensive enzymes that are typically needed to break down the lignen and covert it to sugar. Rather, Mascoma is using engineered microorganisms that produce cellulases and ethanol in one step. “This is a true breakthrough that takes us much, much closer to billions of gallons of low cost cellulosic biofuels,” said Dr. Bruce Dale, with Michigan State University. “Many had thought that CBP was years or even decades away, but the future just arrived. Mascoma has permanently changed the biofuels landscape from here on.”

Mascoma’s claims were proven during the 31st Symposium on Biotechnology for Fuels and Chemicals in San Francisco, during a demonstration given by Dr. Mike Ladisch, Chief Technology Officer. Additional advances with both bacteria that grow at high temperatures, coined thermophiles, and recombinant cellulolytic yeasts have been discovered.

These advances reduce the operating and capital costs required for cost-effective commercial production of cellulosic ethanol. This is great news and even more so in light of yesterday’s announcement of the creation of the Interagency Working Group which includes the funding of building and producing next generation biofuels.

During a recent session of the U.S. Chamber of Commerce aviation forum, FedEx announced that it has a goal of using renewable fuels for 30 percent of its fuel needs by 2030. The company is confident that this action will both reduce air-transportation costs and greenhouse gas emissions.

According to a New York Times article published yesterday, CEO Fred Smith cited using biodiesel derived from jatropha, ethanol produced from switchgrass and other second-generation biofuels to help reduce CO2 emissions and other greenhouse gases that are prevalent in petroleum based fuels.

However, Smith did cite a caveat for adoption and use of biofuels, “These non-fossil fuels must be capable of being easily mixed with existing petroleum aviation fuels that use existing infrastructure,” he said.

President Obama has demonstrated his strong support of environmental and renewable energy initiatives during his first 100 days in office, and most experts have given him high praise. But with the majority of federal legislation favoring next generation biofuels, Smith suggested to the administration that they need to dedicate more significant dollars to fund research, development and deployment of these alternative fuels.

Another effort to curb FedEx’s energy use is to also replace older planes with new ones that use less fuel and fewer emissions. According to the U.S. Department of Transportation, aviation fuel use accounts for approximately 10 percent greenhouse gas emisions from the transportaton sector.

It is hoped that Fed-Ex’s annoncement will encourage others in the aviation industry to follow suit.