Domestic Fuel

Novozymes has announced a partnership with Shengquan Group, a Shandong-based company specializing in furan resin and polymers, to start commercial-scale production of cellulosic ethanol for solvents in June 2012 using Novozymes’ technology.

“Shengquan is a global first mover in this industry, which is on the verge of materializing right now,” says Poul Ruben Andersen, Vice President for Bioenergy at Novozymes. “Shengquan has profound experience in chemical production and is a leading company in commercializing cellulosic ethanol. Novozymes is proud to join Shengquan in nurturing a green and circular bioeconomy which lessens the dependence on fossil fuel resources.”

Novozymes is a leading enzymatic solution provider in bioenergy. It partners with leading producers of cellulosic ethanol all over the world to commercialize this new technology.

In the Senate Agriculture Committee markup of the 2012 Farm Bill on Thursday, an amendment was added to reauthorize mandatory funding for several national renewable energy programs.

Renewable fuel organizations praised the action. “There is no more urgent need in this country today than creating new jobs and reducing our dependence on foreign oil. The programs reauthorized and streamlined today are doing just that, and will continue to help the United States create jobs and replace foreign oil with homegrown, renewable energy production when signed into law,” said a statement from the Advanced Ethanol Council, which represents a number of companies working to commercialize advanced biofuels.

The Agriculture Energy Coalition noted that passage in the Senate committee was an important hurdle, but energy funding still has a long road ahead. “The Coalition will continue its work throughout the process to ensure the bill and energy title move forward and that energy programs continue to receive appropriate mandatory funding.”

“We commend the great work of the Committee to spur additional energy production in rural America,” said Tom Buis, CEO of Growth Energy. “I specifically want to thank Senators Conrad and Lugar for offering a solid, bipartisan amendment that will provide key resources to rural energy programs such as loan guarantees for on-farm renewable energy, energy-efficiency projects, and research and development for advanced biofuels.”

The committee restored some $800 million for programs such as REAP, BCAP, and Biorefinery Assistance, which were created by the 2008 farm bill.

Bob Casper, President of POET Ethanol Products, was named Chief Commercial Officer of POET. In this newly created position, Casper will oversee the marketing and distribution of all products as well as risk management for POET.

Since 2000, Casper has led POET Ethanol Products, which markets all of the ethanol and carbon dioxide for POET’s network of 27 biorefineries. Before serving as president of POET Ethanol Products, Casper spent 21 years leading several energy-related divisions for Wichita, Kan.-based Koch Industries. Casper serves on the Board of Directors of POET, LLC and Growth Energy, the advocacy group representing producers and supporters of ethanol. He graduated from Trinity University in 1977 with a Bachelor of Arts degree in biology.

“Under Bob’s 12 years of leadership, POET ethanol products has become one of the largest and most successful marketers of ethanol in the world,” said POET CEO Jeff Lautt. “Bob has been instrumental in building the market for ethanol to where it is now in over 90 percent of the gasoline gallons sold in the U.S. In the past few years, Bob has successfully managed numerous challenges from the blend wall and expanding export markets to the expiration of ethanol tax credits and the introduction of E15.”

In this new role, Casper will continue to lead POET Ethanol Products, which markets ethanol, carbon dioxide and denaturant. He will also oversee POET Risk Management and POET Nutrition. POET Risk Management provides commodity futures risk management, corn and natural gas derivatives trading and corn and natural gas procurement services for the network of biorefineries. POET Nutrition markets POET’s branded products: Dakota Gold® high protein animal feed, Voila American Corn Oil and Inviz™ natural zein.

“After working for over 20 years in the oil industry, I am passionate about the role that renewable products can play in our world. That’s why I got into this business and am excited about this expanded role,” Casper said. “We have excellent teams in product marketing and risk management, and I’m looking forward to working with them to develop markets for our growing portfolio of products and manage the company’s risk.”

The Renewable Fuels Association (RFA) has added three new board member companies including Aemetis, Inc., Bushmills Ethanol Inc., and E Energy Adams, LLC.

Aemetis, Inc. operates a 55 million gallon per year facility in Keyes, CA. Bushmills Ethanol Inc. is a cooperative made up of 415 farmers that produces 65 million gallons of ethanol per year. E Energy Adams is a locally owned company consisting of nearly 800 investor owners that produces 50 million gallons annually at their dry mill facility. Contributing a combined 170 million gallons of ethanol annually to U.S., these three production refineries individually and collectively are providing jobs, stimulating the economy and helping reduce our nation’s dependence on foreign oil.

“We are pleased to welcome these new members to the RFA,” said RFA President and CEO Bob Dinneen. “The strength of our industry is the involvement of individual companies in working to expand the marketplace for ethanol through thoughtful policies and strategic market development. These new voices will bring important new perspectives to the RFA and further enhance the dynamic initiatives the association is undertaking.”

With the addition of Aemetis, Inc., Bushmills Ethanol Inc., and E Energy Adams LLC, the RFA Board of Directors consists of 50 companies. Every producing member of the RFA receives one vote on the Board of Directors. The RFA is the largest trade association for ethanol producers in the world.

The Brazilian Sugarcane Industry Association (UNICA) today announced the appointment of an interim CEO to replace Marcos Jank, who announced his resignation on March 27th.

UNICA's Board of Directors has named the organization's Technical Director, Antonio de Padua Rodrigues, to serve as interim CEO during the selection process, now underway, for a new chief executive.

A member of the executive team at UNICA since 1990, Rodrigues has been in the sugar-energy industry for more than 30 years and is the organization's Technical Director since 2003. He is a former Administrative and Financial Coordinator of the Brazilian government's National Program for the Improvement of Sugarcane, known as Planalsucar, and was also Administrative and Financial Supervisor for projects backed by Industry and Technology Secretariat at the Federal Industry, Trade and Technology Ministry. In 1983, he played a leading role in the introduction of SPCTS, the Sugarcane Payment System by Saccarosis Content, where he remained as a Consultant until 1990.

Marcos Jank became Board Chairman and CEO at UNICA in July of 2007 and has since spearheaded a period of significant achievements for the sugar-energy industry.

"It has been a great honor to serve an industry that is so important to national life and is increasingly vital for the planet, given the growing range of low carbon solutions that sugarcane offers; the sector has a very promising future and I'm sure that the work done so far will provide a solid base for the progress that we will witness in the future," said Jank, who brought forward his departure from UNICA because of national and international commitments linked to future activities in his professional life.

Florida Agriculture Commissioner Adam Putnam is pleased with the new energy bill for the state that was allowed to become law last week when Governor Rick Scott declined to either sign or veto it.

“Rooted in common sense, this bill was developed to expand energy production in Florida and create much-needed jobs for Floridians. It garnered bipartisan support from an overwhelming 156 members of the Florida Legislature," Putnam said in a statement. “The bill offers technology-agnostic tax credits to businesses that demonstrate investment in energy production and create jobs in Florida. Any form of renewable energy is eligible; the market will determine how investments are made."

Governor Scott was pressured by conservative interests to veto the bill because of tax breaks included for renewable energy production, but allowed the bill to become law without his signature in “deference” to Putnam’s support for the credits, at the same time warning that he would analyze the results of the tax incentives and could push for a future repeal.

Putnam's office issued an independent economic analysis of the Energy Bill that found the law would "generate $143.5 million in new tax revenue and create more than 3,000 jobs for Floridians."

“The combination of these incentives are projected to generate an annual average of $28.7 million in new tax revenue over the fiscal year 2012-2016 and support as many as 3,350 new jobs in all sectors of the Florida economy by 2017,” said study author John Urbanchuk, Technical Director – Environmental Economics of Cardno ENTRIX.

The bill, which will take effect July 1, includes a sales tax exemption for biofuels distribution equipment, including ethanol, biodiesel and other renewable fuels with $1 million per fiscal tax year cap; an investment tax credit against the corporate income tax for renewable energy technologies; and a provision to permit algae as a feedstock for renewable fuels.

The ethanol industry has been handed a setback in its case against the California Air Resources Board Low Carbon Fuel Standard (LCFS) that was ruled unconstitutional by a judge in December.

From a Growth Energy statement: Yesterday, the U.S. Court of Appeals for the 9th Circuit issued an order expediting briefing in the California Air Resources Board’s appeal of a Federal District Court decision invalidating the state’s Low Carbon Fuel Standard (LCFS). On December 29, 2011, the District Court issued an injunction to prevent CARB’s enforcement of the LCFS, having found the LCFS unconstitutional in its regulation of commerce outside the state and discrimination against fuel produced outside California.

The Court of Appeals also stayed the District Court’s decision and the injunction until the Court of Appeals can fully review the District Court’s December 2011 decision. Briefing will be completed by early summer. The ethanol industry plaintiffs look forward to fully briefing the issues before the Court of Appeals on the expedited schedule that the Court has issued.

While environmental interests, like the Natural Resources Defense Council, are happy about the decision, the ethanol industry is confident the original court ruling will ultimately be upheld.

“The ruling made by Federal District Court Judge Lawrence O’Neill finding the LCFS unconstitutional was based on sound legal precedent and should stand,” said Renewable Fuels Association President and CEO Bob Dinneen. “At its core, we believe the LCFS to be unlawfully written and decidedly punitive against ethanol produced in United States but outside the borders of the state of California. We will vigorously defend our position and support the ruling of Judge O’Neill.”

The oil industry is united with corn-ethanol producers on this issue because they believe the mandate is unfairly punitive to out-of-state fuel suppliers.

The Governors’ Biofuels Coalition is urging the Senate Finance and House Ways and Means Committees to include E85 in the definition of the Alternative Fuel Tax Credit and recommending that the provision be extended as part of the pending “Extenders Bill.”

In a letter sent to the leadership of both committees last week, the governors noted that E85 was considered an alternative fuel for federal energy policy purposes under the Energy Policy Act of 1992, but Congress wrote E85 out of the alternative fuels credit in order to avoid a double tax benefit with both the ethanol tax credit and the alternative fuels tax credit in effect. “Now that Congress has ended the ethanol credit, E85 could continue to benefit from the alternative fuels incentive,” they said.

The coalition, which is made up of the governors of 33 states, say that if E85 is not included in the alternative fuel tax credit, flex fuel vehicle drivers will pay as much as 38 cents more per gallon, significantly reducing the demand for the fuel. “On the other hand, extending the credit with E85 would only cost the Treasury approximately 0.8% of the full, expired ethanol subsidy. We believe this small, short-­‐term investment will make a significant difference in the success of petroleum fuel alternatives,” they added.

Defining E85 as an alternative fuel in the tax code is one of the main goals of the Coalition for E85, a group of retailers, producers, equipment manufacturers, automobile manufacturers and other supporters of E85 fuel.

The final federal hurdle to getting 15% ethanol at the pump has officially been satisfied with the funding of a nationwide fuel survey required by the Environmental Protection Agency (EPA).

The ethanol industry reports that a total of 99 ethanol producers are funding the survey to meet the requirement under the partial waiver approved by EPA.

“Despite owning just a handful of the nation’s 160,000 gas stations that will be the actual participants in the survey, ethanol producers are providing the lion’s share of funding for this survey in order to bring a higher performing, lower cost fuel to the market in E15,” said the Renewable Fuels Association (RFA), Growth Energy, and the American Coalition for Ethanol (ACE) in joint announcement praising the industry for stepping up to the plate to help bring E15 to the market.

Efforts to bring E15 to pumps across the nation will now focus on states where regulatory issues must be addressed. Some states, like Iowa, Illinois, and Kansas are prepared for E15 and sales of E15 could commence as soon as all parties are registered with EPA and are implementing the Misfueling Mitigation Plan approved by EPA. However, challenges such as pending litigation and anti-ethanol posturing by some in Congress, make it difficult to predict an exact time frame for the growth of E15 sales volumes nationwide.

The fuel survey is required annually and will be conducted by RFGSA. The survey will be collecting more than 7500 samples each year of all gasolines available nationwide and will begin on May 1, 2012.

A coalition of trade groups and organizations representing renewable energy, energy efficiency, farm and environmental interests is disappointed in a 2012 Farm Bill draft out of the Senate Agriculture Committee that they say provides “no real funding for energy programs.”

“The Committee draft bill moves the process forward, thankfully, and we support getting a bill done this year,” said Ag Energy Coalition Co-director Lloyd Ritter in a statement. “However, the core energy title programs that are necessary to move the country toward greater energy security, increase jobs, revitalize manufacturing, and improve environmental quality require mandatory funding. REAP, BCAP, Biorefinery Assistance and BioPreferred, among others, have produced results across the country, especially in rural America where jobs are dwindling.”

Coalition member Brent Erickson of the Biotechnology Industry Organization (BIO) noted that the Farm Bill’s energy programs have helped revitalize rural America, allow new agricultural markets emerge, and reduce the need for direct payments to farmers. “These programs have unlocked private capital for construction of biorefineries, put more than 150,000 acres of underutilized farmland into production of next-generation energy crops, and ignited an explosion of biomanufacturing innovation, demonstration and early commercialization,” said Erickson. “In the short time that these programs have operated, they’ve achieved a high rate of return in supporting the start up of renewable chemical, advanced biofuel and biomanufacturing companies, as a timeline of the programs demonstrates.”

The Senate Agriculture Committee is scheduled to begin markup on the Farm Bill this week and the House Ag Committee will also be working on the legislation.

If the United States puts its mind to it, energy victory can be achieved. How? Energy expert Dr. Robert Zubrin, author of Energy Victory has the formula for success.  Zubrin recently spoke at the Indiana Ethanol Forum, and fellow journalist Meghan Grebner of Brownfield Ag News interviewed him after his presentation asking him what the most important thing people should take away from his presentation.

“The most vital threat to America right now is its energy insecurity,” answered Zubrin. “The number one responsibility of the federal government is national defense. That means defending us from being looted by the foreign oil cartel; defending us from being brought to our knees for lack of fuel. In order to weaken the power of the cartel, and as well as lower the price of oil, and benefit our economy, we need other options.”

Zubrin said we need to have fuel choice both as a nation and as individuals.  He also explained that we need to put our domestic resources, such as the agricultural sector, to work solving the problem, but right now we’re being blocked from using what we have.  “We are not addicted to oil, our cars our addicted to oil,” said Zubrin.

The solution? Enabling our cars to use other fuels that are not controlled by the oil cartel.

Listen to Dr. Robert Zubrin’s entire interview to learn more about how America can achieve energy victory. Robert Zubrin

Thanks to Brownfield Ag News for sharing this interview with Domestic Fuel.

The key to continued growth, says Renewable Fuels Association (RFA) President and CEO Bob Dinneen, is the availability of higher level ethanol blends such as E15 and other renewable fuels. Dinneen submitted written testimony to the House Energy and Commerce Committee Subcommittee on Environment and Economy on April 19. Dinneen testified in support of the Domestic Fuels Protection Act, aimed at easing the regulatory burden for fuel retailers to offer consumers additional renewable fuels at the pump, including E15.

“[T]he current regulatory structure provides no pathway to certify existing equipment for anything other than fossil fuels, even when test data demonstrates its safety,” Dinneen testified. “The Domestic Fuels Protection Act allows EPA to create such a process, thereby providing new fuels access to the marketplace without having to expend time and resources on new infrastructure unnecessarily.”

The goal of the Domestic Fuels Protection Act is to protect retailers. If equipment used by retailers to dispense EPA approved fuels meets fuel specifications, and a retailer properly informs customers about the approved use of the fuel, then they will be protected from any meritless lawsuits. It is important to understand that this Bill does not in any way effect the Renewable Fuels Standard (RFS) nor current approvals for the sale and use of E15.

“I can say without hyperbole or reservation that the RFS has been the most successful energy policy this nation has ever implemented,” continued Dinneen. “It should be vigorously defended and maintained, and allowed to reach its full potential of 36 billion gallons of clean burning, renewable fuel.” But to achieve this, market access for ethanol and other renewable fuels must be expanded.

Dinneen concluded, “The RFS is entering a critical period, however. The volumes of renewable fuel refiners are required to meet can no longer be met by just 10% ethanol. Greater volumes of ethanol and a greater diversity of biofuels and feedstocks will be necessary to meet the increasing volumes required by the RFS. Critically, these fuels will be attempting to enter the marketplace amidst a complicated regulatory structure that favors incumbent technologies and discourages market access. Gasoline marketers deserve the certainty that they will not be penalized for utilizing a new fuel or fuel blend that has been approved for use by the U.S. Environmental Protection Agency (EPA).”

According to a top aide to President Obama, the White House is still highly supportive of renewable fuels. Heather Zichal, Deputy Assistant to the President for Energy and Climate Change made this statement during the Renewable Fuels Association’s Washington Legislative Forum that was held this week at the Newseum in Washington, DC.

“One of those most promising [clean energy] industries has been American biofuels,” said Zichal. “Right now, domestic biofuel production is at the highest level ever. In fact, monthly production has increased more than 40% in the last three years. That means that biofuels are already reducing our dependence on oil, cutting pollution, and creating jobs across the country.”

Zichal referenced the need to continue the expansion of the biofuels industry that includes advanced technologies. Last year, President Obama set a goal of breaking ground on at least four commercial scale cellulosic or advanced biorefineries by 2013. She said this goal has been met ahead of schedule and combined, the biorefineries will produce nearly 100 million gallons of advanced biofuels each year.

“[S]o last week, we were encouraged when the biofuels community stood behind EPA’s implementation of the Renewable Fuels Standard – which we think is critical tool to promote growth in renewable fuels production in the years ahead,” said Zichal. “At the same time, we’re taking steps to help level the playing field. Not only has the Administration supported repealing subsidies for oil and gas companies, the President announced yesterday that we’re taking new steps to crack down on manipulation in the oil markets to help protect consumers at the pump.”

While production is important, Zichal also underscored the Obama Administration’s commitment to infrastructure and deployment of renewable fuels and technologies. “Now, as we produce more biofuels, it’s also important that we focus on deployment. If you think back to when America was moving from horseback to rail and then cars and trucks, we didn’t say your own your own. We laid tracks and paved roads and built bridges to accelerate the transition. We need to make a similar effort on biofuels.”

Zichal commended the work beging done by various government departments including the Dept. of Agriculture and Dept. of Energy to bring biofuels, such as ethanol to the market.

“The Obama Administration has been a trusted and reliable partner with America’s growing and evolving ethanol industry,” added RFA President and CEO Bob Dinneen. “President Obama and his team appreciate the vital contributions already being made by existing ethanol producers and are committed to ensuring the commercialization of promising new ethanol technologies.”

MFA Oil CEO Jerome Taylor has been recognized by the White House for being a Champion of Change due to his cooperative’s work in helping to build the renewable energy industry. He was one of nine people honored by the White House yesterday and is no stranger to the biofuels industry. In 2006, Taylor was honored with the Fields to Fuel Marketing Award (now the Paul Dana Marketing Vision Award) by the American Coalition for Ethanol (ACE) for his support of ethanol.

“Jerry Taylor and MFA were already promoting ethanol and making E85 available in their Break Time convenience stores and 24-hour cardlock sites when ACE started our Market Development program twelve years ago,” said ACE Senior Vice President Ron Lamberty. “Jerry picked up some of our “Why is Ethanol Good for My Car” brochures at a Missouri Petroleum marketers’ trade show, and over the next several years MFA distributed tens or even hundreds of thousands of them through their retail units.”

Lamberty continued, “MFA has provided a roadmap for other petroleum marketers who want to promote and sell ethanol profitably, and ACE is thrilled that those efforts have been rewarded with recognition by the White House.”

The Renewable Fuels Association (RFA) hosted it’s first ever Washington Legislative Forum this week and Senator John Hoeven took time to discuss the elements of the bipartisan Domestic Fuels Act that was released this past March. The discussion was timely as RFA recently released results of a poll showing that 58% of respondents were more likely to purchase fuels with higher domestic renewable fuel content, like E15, when available.  The Domestic Fuels Act is aimed at making it easier for retailers to offer consumers higher blends of ethanol.

“We need to make all fuels available to American consumers and businesses, and we need to do so by using market-based measures that increase competition and remove bureaucratic obstacles to producing and marketing renewable fuels,” said Hoeven. “This is really about giving customers more choice and better prices at the pump by empowering retailers to market multiple fuels using the same equipment. That’s good for the customer, good for business and good for the nation.”

Hoeven pointed out some specific benefits of the Act that included:

• Streamline the process so that all fuels, both traditional and renewable, can be stored and dispensed with common equipment.
• Provide liability protection for retailers that meet the streamlined EPA standards, so that they can sell multiple types of fuel with less red tape, providing consumers with more choice and lower fuel prices.
• Establish a new pathway for retailers to ensure that their equipment is safe and legally recognized as compatible to sell new fuels, thereby reducing the cost of entry for many retailers.

RFA President and CEO Bob Dinneen added, “Expanding the availability of fuel choices like E15 directly reduces America’s demand for imported oil and creates jobs and economic opportunities that cannot be outsourced. The Domestic Fuels Act is a perfect example of the kind of thoughtful policies that can be created when all stakeholders work together for the common good.”