Domestic Fuel

The U.S. federal government may be dragging its heels on its support for biofuels, but many states, including Ohio, are stepping up to plate. The Dayton Business Journal has reported that Ohio has designated an $8 million fund to boost biofuel production by subsidizing ethanol and biodiesel refining equipment purchases. The program is designed to give ethanol and biodiesel equipment manufactures based in Ohio a market boost.

The money is actually coming from the state’s $96 million energy project allocation as part of the American Recovery and Reinvestment Act. The Ohio Department of Development’s Energy Resources Division is currently accepting applications for funding under the Advancing Biofuels Beyond the Basics program. Awards will be given for projects not to exceed $1 million for any one project, and are designated for the purchase of equipment that will increase second generation ethanol refining capacity or biodiesel production facilities.

Requirements of the program include a stipulation that the company receiving the award must pay at least 25 percent of the total project cost, the project must be complete within one year of the award and it must demonstrate a direct economic benefit to Ohio.

A bidders’ conference is scheduled in Columbus on Oct. 6. Registration is required by e-mail at Recovery.Stickel@em.ohio.gov.

Flex Fuel U.S.®, a company dedicated to the development of future fuel solutions and alternative fuel conversion systems, has been awarded approval to sell and install E85 Flex Fuel conversion systems to Federal Government Fleets through the Federal GSA schedule. The system is the first EPA certified product enabling existing cars and light duty trucks to be legally converted to run any blend of gasoline and ethanol up to E85.

To date Flex Fuel U.S. has the capability to convert the Chrysler Charger/300, the Ford Crown Victoria/Grand Marquis/Town Car vehicles and will soon announce a light duty truck. The product can be installed on the vehicle in 2 hours, requires only moderate technical expertise and doesn’t void the warranty on the vehicle. The product is backed by a 24 month warranty covering defects in parts and materials. The owner is fully protected when using higher concentrations of ethanol in the vehicle.

“We believe this new technology provides a valuable tool for fleet managers because it allows vehicles to be retrofitted into alternative fuel at a very low cost. Also if you need a vehicle that’s not offered from the OEM as flex fuel capable, our system can be used.” says Don Althoff, CEO of Flex Fuel US. “Flex Fuel US has a proven track record of success converting vehicles over the last three years. This includes successful fleet demonstration project at the City of Chicago and one underway through the State of Iowa’s DOE Energy Independence Grant. We have proven we can reliably develop, install, and operate E85 conversion systems across multiple vehicle manufactures and engine platforms.”

Flex Fuel US is rolling out conversion systems to federal, state, and municipal fleets to accelerate conversion of legacy vehicles. “We look forward to developing E85 conversion products on vehicles that are not available in Flex Fuel models such as fuel efficient compacts, hybrids and high performance vehicles.” Says Mitch Sremac, founder and inventor.

The nation’s major fuel marketing associations are advocating legislation that will help them sell higher blends of renewable fuels, including ethanol and biodiesel greater than E10 or B5.

NACS – the Association for Convenience and Petroleum Retailing, along with NATSO (representing America’s Travel Plazas and Truckstops), Petroleum Marketers Association of America (PMAA), and Society of Independent Gasoline Marketers of America (SIGMA) have joined the Renewable Fuels Association (RFA) in supporting the Renewable Fuels Marketing Act of 2010 (HR 5778), which was introduced yesterday by U.S. Representatives Mike Ross (D-AR) and John Shimkus (R-IL).

According to NACS, “the bill will enable retailers to have existing equipment evaluated and legally approved to sell new renewable fuels and will expedite the approval of new equipment. It also will protect retailers from Clean Air Act violations and liability associated with self-service consumers fueling unapproved engines with higher blends of renewable fuels.”

On the RFA blog, communications director Matt Hartwig said the legislation will help provide for a “seamless transition” to E15, whenever it is approved by EPA, “accelerating the adoption of E15 and the needed expansion of the ethanol market.”

The groups collectively sent a letter to Reps. Ross and Shimkus thanking them for their leadership in introducing the bill.

The 10th Annual Federal Fleet Conference kicked off in Phoenix, Arizona this week offering attendees the chance to attend sessions and have the opportunity to visit with exhibition vendors on fleet management and automative procurement.

Over 1,300 participants from all levels of fleet and aviation management within the Federal Government are in attendance. Workshop sessions began on Sunday with a Basic Fleet Class which educated new Federal Fleet management on how to function with the their agency, learn about fleet policies, procedures, mandates, new programs and more. Many workshops followed throughout the week.

The exhibit hall opened on Monday to over 180 companies who can network with other vendors, Federal, State, local government and private sector fleet menagers. Exhibitors included automobile manufacturers, alternative fuel and alternative fuel vehicle promoters and more.

The 2011 FedFleet conference will be held in Orlando, Florida from July 26-28.

After nearly four years of Underwriters Laboratory (UL) testing, certifications have finally been issued to both the Gilbarco Veeder-Root Encore® E85 fueling dispenser and the Dresser Wayne Ovation® Eco fueling E85 dispenser. These fuel pumps are now completely certified and approved for dispensing any range of fuel ethanol from E0 through E85.

“The final UL certification of both the Gilbarco and Dresser Wayne fuel dispensers represents a significant step in expanding our national effort to provide higher level blends of ethanol directly to consumers,” said Growth Energy CEO, Tom Buis in a press release announcing the approvals. “Now that these two outstanding domestically based pump manufacturers have received all the final approvals and certifications, we anticipate a more rapid expansion in the number of higher blend fueling facilities across the nation.”

“This UL approval helps Dresser Wayne further its commitment to the development of green refueling technologies,” said Scott Negley, Director of Alternative Energy Products for Dresser Wayne. “Consumers are increasingly demanding renewable fuel options for their vehicles, and car manufacturers are steadily increasing the number of vehicle models that use eco-friendly fuels. Now, fuel retailers dispensing E85 with Dresser Wayne Ovation Eco Fuel E85 dispensers can meet consumer demands and also be in compliance with industry standards.

“We are pleased to be leading the development of the infrastructure required for alternative fuels, including increased use of ethanol,” said Chad Johnson, marketing manager for Encore dispensers at Gilbarco Veeder-Root. “The Encore S Flexible Fuel dispensers for E85 provide our customers with the same innovative, money-making features and durability they enjoy with the gasoline models.” (Press announcement here).

The certification and approval of ethanol blender pumps is expected in upcoming weeks.

Missouri’s alternative fuel infrastructure tax credit is now defined easily in a website sponsored by the Department of Natural Resources (DNR). Retailers can take advantage of this credit in the taxable years between Jan. 1, 2009 and Jan. 1, 2012.

The Missouri tax credit is allowable on top of the income tax credit offered by the Federal Government in the amount of 50 percent up to $50,000 of the total cost of the project. Qualifying retailers can receive a state tax credit of 20 percent up to $20,000 of the total cost of the project. According to the website, DNR states that the cumulative amount of tax credits which may be filed for by eligible applicants claiming all credits authorized will not exceed the following amounts:

In taxable year 2009 – $3 million.
In taxable year 2010 – $2 million.
In taxable year 2011 – $1 million.

Desiring applicants must supply an application to MO DNR where they will review and certify eligibility. The application can be found by clicking here. A complete description of the MO alternative fuel tax credit rules can be found by going to: http://dnr.mo.gov/pubs/pub2382.pdf.

While researchers continue work on miscanthus’s viability to produce cellulosic ethanol, and growers now have a way to plant and harvest the feedstock more efficiently. After years of collaboration and research, a miscanthus rhizome regeneration harvester and planter system has been developed. The unveiling took place during the Bioenergy Feedstocks Symposium held at the University of Illinois (U of I). Typically, miscanthus is a labor-intensive crop requiring multiple machines, and costly manual selection and grading – but not any longer.

The new machine is the result of a three-year collaboration between U of I, Tomax Ltd and Bermuda King USA. According to a news release from U of I, this machinery can lower the cost of miscanthus rhizome production by up to 40 percent and create opportunities for miscanthus to be used more widely as a high-yield bioenergy crop.

Gavin Maxwell, Tomax Ltd Senior Bioenergy Consultant, said, “Bioenergy feedstock processors require security for supply and unless we dealt with regeneration and planting issues for miscanthus, we simply couldn’t make progress. The collaboration team had a very clear objective when beginning the design process of the harvester and planter. Our goal was to remove manual labor, integrate the digging and grading process, increase soil separation and improve both quality and volume to substantially reduce the cost of vegetative rootstock propagation.”

In recent U.S. trials, the machine has demonstrated a 200 percent increase in rhizome collection over manual systems. this allows, says the research team, the opportunity for regional nurseries to more efficiently expand to meet the demand for both solid and liquid fuel conversion. The harvester and planter package will be available beginning this year and will be available for expanded grower crops in time for the 2011 season.

AGCO is one of the companies working on a prototype biomass harvest/transport system. At POET’s Project LIBERTY Field Day they demonstrated a pulled behind baler system to harvest corn cobs and stover.

Dean Morrell, Product Marketing Manager for Hay and Forage Harvesting, was on site and talked with me about their system. He says it’s a one pass system which utilizes combine technology and durable large square baler technology. He says the material doesn’t touch the ground and makes for a very clean bale product. They had to do some major customization on the equipment and they have two units out working in the field as part of the development process.

You can listen to my interview with Dean below.

POET Project LIBERTY Field Day Photo Album

Podcast: Play in new window | Download (2.4MB)

One of the companies exhibiting their developmental corn cob harvest/collection equipment at the POET Project LIBERTY Field Day was Case IH. Representing them again this year was Sam Acker, pictured sitting in their booth during the speeches. I first met him last year and got an update on what’s new from the company this year.

Sam says they’re demonstrating an Axial-Flow 8120 combine and biomass harvesting system. The combine features a massive 350 bushel grain tank and has an attached biomass cart which is receives power from the combine. The cart has an adjustable cleaning system to tailor the cob/stover sample how you want it.

You can listen to my interview with Sam below and watch a video clip of the equipment lined up and waiting demonstration starting with Case IH.

POET Project LIBERTY Field Day Photo Album

I wasn’t the only one shooting video at the POET Project LIBERTY Field Day in Emmetsburg, IA. POET was too for POET TV. POET does a great job of using new media channels to communicate their activities. You can also learn more about the event by seeing their photos online and following along with their Project LIBERTY Blog.

In this video clip you’ll find:

Sitting inside a Claas Lexion 595 Combine as it goes through a corn field collecting corn and corn cobs. The cobs were carried in a Redekop H165 cob collection device towed behind the combine.

There were 16 different equipment manufacturers involved with POET’s Project LIBERTY Field Day. One of them was John Deere, represented by Dean Acheson, Manager, Solutions Development. Dean says that what they’re working on is completely customer based. He says they don’t want to be slowed down during harvest and they want to keep up a high level of productivity.

The prototype equipment they had on display was a one pass, two stream cob collection system. On the back of their combine they have a new prototype piece of equipment that allows the grain to follow a normal path and the cobs then flow out of an attachment on the back of the combine. He says the equipment allows you some flexibility in how you choose or handle what is being harvested. A wagon is pulled by a tractor alongside the combine to collect the cobs. They’re currently not endorsing the towing of equipment behind their combines but this is equipment that is in development for the future.

You can listen to my interview with Dean below and watch a video clip of their equipment in action.

POET Project LIBERTY Field Day Photo Album

Podcast: Play in new window | Download (3.4MB)

“It’s what we do. We sell blenders to everyone,” said Scott Negley, director of alternative energy products at Dresser Wayne. Blender pumps are gaining momentum across the country. They allow a retailer the flexibility to dispense various forms of gasoline and biofuels such as ethanol and biodiesel. Negley told me during the NACS show that 80 percent of the dispensers they sell are blender pumps.

“There is significant demand for blender pumps. That’s what we do best. We’ve been doing it for years,” said Negley. Actually, the company sold its first mechanical blender back in the mid-50s. Today, they have just debuted their new Eco-fuels blender series.

This series has the latest innovation in hydraulic technology that allows retailers to sell blended products from two hoses at the same fueling point. This allows for separation (which many states have legislated) of low and high-blend ethanol or biodiesel. The dispenser is customizable in 1 percent increments allowing retailers to sell the most popular blends of fuels, such as E30.

Another unique feature of the Eco-fuel series is that the dispensers have not only been designed for what fuels we have today, but the fuels we may have in the future. Negley noted that oil companies are working on fuels that will meet the CARB and RFS2 requirements. In addition, Dresser Wayne has products designed to dispense propane in Europe and is now in the process of developing a compressed natural gas (CNG) product.

You can listen to my full interview with Scott where he also discusses where UL is in the certification process and how that effects retailers.

Podcast: Play in new window | Download (3.3MB)

Agribusiness giant Cargill acquired the rights to the land and grain handling assets of the incomplete Altra Nebraska ethanol facility in Carleton, Nebraska during an auction conducted by Maas Companies this week. Cargill will take possession of the assets effective November 4.

Construction on the Altra facility began in 2006 and was approximately half complete in November 2007 when work stopped after its owners were unable to secure additional financing.

The facility is located near the existing Cargill AgHorizons grain handling facility and regional Farm Service Group leader Robert Racek says the new asset will complement Cargill’s existing grain handling capabilities. “This facility is a valuable asset to the entire region, and we intend to invest further in optimizing its value for our producer customers,” said Racek. “While we will have to make additional enhancements to the facility to make it fully operational, we are determined to leverage this opportunity to offer more flexibility to area crop producers in terms of the delivery, storage, handling and marketing of their grain.”

Cargill AgHorizons’s regional Aksarben farm service group also operates grain handling facilities in Albion, Lincoln, O’Neil, and Ord, Neb., as well as Council Bluffs, Iowa.

Coming up in November, the Minnesota-based Maas Companies will be conducting an auction of 60 million gallons worth of biodiesel-producing equipment at a location in New Jersey. The Greenline Industries equipment is currently in storage and is based on the technology developed and operating in Germany.

Find out more here.

The Fall 2009 of Ethanol Retailer has recently been published by Growth Energy. The free pulication, distributed to over 25,000 retailers nation wide, is geared specifically towards independent ethanol retailers and petroleum marketers.

The magazine encourages installation of mid-level and E85 blends and provides the necessary information to retailers on the installation process at their station. The publication also highlights financial opportunities and incentives available to retailers for installation of ethanol blended fuel.

A few highlights of the Fall 2009 issue includes: first person stories on how two independent retailers took the fast track to installing blender pumps in Ohio and Inidana; mapping ethanol use in the U.S.; and the race to develop high-performance engines that are powered by ethanol.

See a copy of the Fall 2009 edition of Ethanol Retailer by clicking here.

The Clean Energy Coalition (CEC) has announced that it is offering up to $5,000 to install or upgrade an existing pump to dispense E85 in the state of Michigan. This is one of many of the incentives offered in the state.

“The Clean Energy Coalition is dedicated to increasing the number of E85 pumps in Michigan,” said Sean Reed, CEC executive director. “Through a grant from the Michigan Department of Energy, Labor & Economic Growth (DeLEG), we are providing infrastructure incentives for E85.”

In addition to the CEC grant, gas station owners can also apply for federal and state tax credits that significantly reduce the installation and qualified equipment costs. “Stations may be eligible for up to an additional $50,000 to be applied towards installation costs from other state and federal incentives,” said Reed. The federal government is offering a 50 percent tax credit of up to $50,000 and the Michigan Department of Treasury is offering a 30 percent tax credit up to $20,000.

The DeLEG Energy Office is also offering a $1,500 incentive to assist with the cost of designing and installing a highway exit sign that promotes the E85 pump, as well as paying the first year’s annual fee.

In total, the CEC was awarded $145,000 from the DeLEG and $20,000 from the Corn Marketing Program of Michigan (CMPM) to offer station owners the opportunity to sell E85. “I’m excited to work with the CEC to help bolster Michigan’s ethanol industry and increase the number of E85 pumps available to consumers,” said Pollok-Newsom. “Ethanol reduces our country’s need for foreign oil, supports our rural communities, and helps reduce harmful greenhouse gases.”

For more information or to apply for a grant from the CEC, visit www.cec.mi.org.