Domestic Fuel

Two key programs that will encourage the use of renewable biomass and production of advanced biofuels is available through the FY 2012 USDA budget, according to the Agriculture Secretary Tom Vilsack. About $25 million will be made available through each program.

First, the Repowering Assistance Program provides approximately $25 million in funding to biorefineries that have been in existence on or before June 18, 2008. The purpose of the program is to provide a financial incentive to biorefineries to use renewable biomass in place of fossil fuels used to produce heat or power. By providing this assistance, USDA is helping these facilities install new systems that use renewable biomass.

Eligible costs must be related to construction or repowering improvements, such as engineering design, equipment installation and professional fees. The application deadline for this program to receive funds for Fiscal Year 2012 is June 1, 2012. For additional details, please see pages 5232 through 5234 of the February 2, 2012, Federal Register.

Second, USDA also announced the availability of up to $25 million to make payments to advanced biofuels producers who expect to produce eligible advanced biofuels at any time during Fiscal Year 2012. To be eligible for these funds, an advanced biofuels producers must have enrolled in the program by October 31, 2011, even if the producer has an existing contract with the Agency.

Payments will be made to producers of advanced biofuels derived from renewable biomass, other than corn kernel starch. These include cellulose, sugar and starch, crop residue, vegetative waste material, animal waste, food and yard waste, vegetable oil, animal fat, and biogas.

Contract payments will be made quarterly. For additional details, please see pages 5229 through 5232 of the February 2, 2012, Federal Register.

“President Obama has laid out 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 Vilsack. “These programs support that vision by helping biorefineries use renewable biomass as a replacement fuel source for fossil fuels and supporting advanced biofuel producers as they expand production.”

The Process Optimization Seminar coming up February 8-10 in St. Paul, Minnesota is now officially sold out.

The event is organized by Fermentis, Fremont Industries, Novozymes and Phibro Ethanol Performance Group and is the seventh in a series that have been held in different areas of the country over the past two years. The seminars have been organized for both plant managers and operators. The number of participants in the seminars is kept intentionally small to allow for maximum educational opportunity and interaction.

If you missed this one, the next seminar will be held in the summer in Kansas City. Details will be coming soon.

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BBI International and NEAtech have formed a joint venture, called BBI Consulting Services, to offer bioenergy consulting to thousands of companies and organizations worldwide, as well as state and federal departments in the United States.

BBI International originally started as a bioenergy consulting firm in 1995 and has since grown into a media and events company focused on growing the bioenergy industry. Founded in 2009, NEAtech is a technology-based engineering and consulting firm specializing in advanced biofuels, biomass energy, and biotechnology projects. Having already helped hundreds of companies plan and execute successful projects, this new joint venture with NEAtech will reintroduce BBI International’s consulting service to thousands of new businesses worldwide.

Dr. Rafael Nieves and Mark Yancey of NEAtech, two experienced bioenergy consultants, are leading this group. Nieves has worked in the bioenergy sector for more than 28 years. He has extensive experience nationally and internationally managing bioenergy projects in the U.S., Mexico, the Dominican Republic, El Salvador, Puerto Rico, Brazil, Australia, Philippines, Ghana, Armenia, Indonesia and the Ukraine.

Yancey has 35 years of experience in the fields of bioenergy and environmental engineering including extensive experience in project development and economic analysis for first and second generation biofuels facilities. His expertise is in the development of bioenergy projects including development of business strategies and financial, market and technical analyses of projects and renewable energy opportunities.

“We are excited about offering a consulting service to our customers,” said Joe Bryan, president and chief executive officer of BBI International. “This venture is the first step in helping companies associated with BBI International gain valuable insight on their current and future projects.”

“This venture will allow us to combine our expertise with BBI’s knowledge and resources,” said Nieves, CEO of NEAtech.

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.

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.

POET is now more than 75 percent of the way to achieving its water reduction goal of one billion gallons annually by 2015 at the company’s ethanol plants.

This year POET reduced water use by more than 770 million gallons compared to 2009 by using the company’s Total Water Recovery System at their 18th ethanol production facility, POET Biorefining in Chancellor, South Dakota.

“We’ve made reducing water use a priority at our plants, and it shows,” POET CEO Jeff Broin said. “I’m confident that we can reach our overall water use goal.”

Eighteen of POET’s 26 ethanol plants now have Total Water Recovery Systems under the company’s “Ingreenuity” initiative that was instituted in March 2010.

A new commercial scale advance biofuels plant broke ground today in Vero Beach, Florida.

The $130 million plant is being developed by INEOS New Planet BioEnergy (INPB), a joint venture between INEOS Bio and New Planet Energy. The Indian River BioEnergy Center in Vero Beach, Florida, will convert yard, vegetative and household wastes into cellulosic ethanol and renewable power for the local community.

“We are excited to celebrate this important milestone, which moves advanced biofuels a step closer to achieving significant scale, enabling the U.S. to achieve a leading position in the bioenergy sector,” said Peter Williams, Chairman of INPB and CEO of INEOS Bio. “As part of our goal of advancing the biofuels industry, educating people about the benefits of this technology and creating demand for advanced biofuels, we will continue to license this world-changing technology to partners across the U.S. and beyond, bringing secure, renewable fuel and power to communities worldwide.”

When production starts in mid-2012, the Indian River BioEnergy Center will produce eight million gallons of bioethanol and six megawatts (gross) of renewable power, of which approximately two megawatts will be exported to the local community. This renewable electricity will be able to power approximately 1,400 homes. Located at a former citrus processing plant site in Vero Beach, Florida, the BioEnergy Center will provide 380 direct and indirect jobs (including 175 construction jobs) over the next two years and 50 full-time jobs in Indian River County where, current unemployment is at 13.6 percent, the 23rd highest metro area in the nation.

Protec Fuel announces the opening of an E85 pump at 5264 New Jesup Highway in Brunswick, Georgia. Offering the clean burning, alternative fuel, Mr. Pete’s is the first station to have Protec Fuel’s imaging on their dispenser.

E85 is a blend of 85 percent ethanol and 15 percent petroleum and can be used in over 8,000 FFVs across the area. The alternative fuel has been proven to reduce greenhouse gas emissions and reduce the nation’s dependency on foreign petroleum.

Mr. Pete’s used Protec Fuel’s turnkey program which included designing and managing the equipment conversion and fuel supply. “We are pleased to be assisting this station with their E85 infrastructure and supply of fuel,” said CEO of Protec Fuel, Todd Garner. “Mr. Pete’s is a prime location for Protec’s roll-out of new E85 dispenser imaging and we look forward to seeing additional sites with our specialized branding.”

The E85 site is also the first of its kind in the area. Located just north of Jacksonville and south of Savannah, the owner is excited to begin selling the product. “I’m looking forward to see how many green vehicles will use our new fuel,” noted owner of Mr. Pete’s, Al Coty. “I’m proud to carry the fuel – it’s keeping the money in this country and helping our economy.”

Mr. Pete’s and Protec Fuel have teamed up with the Clean Fuels Foundation through their National Flex Fuel Vehicle (FFV) Awareness Campaign to help market the station and gain additional exposure. “Support from the state government, a strong Clean Cities program, in-state 1st and 2nd generation ethanol production, and a strong existing refueling infrastructure placed Georgia on our key market list in this partnership,” said Burl Haigwood, Clean Fuels Foundation and Project Manager for the National FFV Awareness Campaign.

Mr. Pete’s is open seven days a week. The site offers a convenience store and pay at the pump option.

Guardian Energy Holdings of Minnesota now has a majority stake in an ethanol production facility located in Lima, Ohio. The 54-million gallon per year plant will operate under the name Guardian Lima, LLC.

The facility originally began operations in 2008 as Greater Ohio Ethanol, but filed for bankruptcy protection later that year due to numerous operational challenges and adverse financial market conditions. The plant has been idle since November, 2008 and was acquired by PEA in March, 2009.

Guardian Lima also announced that it has selected Renewable Products Marketing Group (RPMG) as its ethanol and distillers grain marketing partner.

Two E85 stations will hold promotions for the clean burnign fuel next week in Minnesota. The Cenex Prairie Pride in Slayton, MN and Schmitty’s in Grove City will sell E85 for 85 cents off per gallon.

Following are the locations of the promotions, dates and times:

June 9 from 11 a.m. until 1 p.m.
Cenex Prairie Pride
Hwy 59 & 30
Slayton, MN

June 10 from 1 p.m. until 4 p.m.
Schmitty’s
100 Atlantic Ave.
Grove City, MN

Supporters for the events include: Meeker County Corn Growers, Minnesota Corn Growers Association, US Department of Energy Clean Cities, American Lung Association in MN & the Minnesota Clean Air Choice™ Team, Murray County Corn & Soybean Growers.

The Cenex Prairie Pride event will also have the Biofuels Bean Bag Toss, Clean Air Choice Plinko and fun prizes along with the E85 powered F150.

Visit CleanAirChoice.org for more information.

The New York State Energy Research and Development Authority has extended their Biofuel Station Initiative that will allow for 50 percent of the costs, up to $50,000 per site, for new installations of biofuels dispensing equipment, storage tanks and associated piping equipment.

The New York State Biofuel Station Initiative was launched in May 2007 and the objective is to increase the number of retail E85 and biodiesel service stations in New York through a comprehensive approach of providing incentives to both mid-stream distribution terminals and retail stations.

“NYSERDA’s biofuel station initiative has been successful in building an alternative fuel infrastructure throughout New York with more than 130 retail gas stations participating and the first 45 currently open,” noted Jeffrey Gordon, Director of Communications, NYSERDA. “E85 is a domestically produced alternative fuel that affords consumers a choice at the gas pump over conventional gasoline, is more environmentally-friendly, will reduce our demand for imported oil, and will keep our energy dollars right here in New York. With continued support from our federal and State administrations, E85 ethanol will continue to play a role in NYSERDA’s efforts to help build a vibrant clean energy economy for the future.”

Approximately $4 million is still available for retail fueling stations. Growth Energy Market Development is supplying the stations with their pump imaging package that will allow for a consistent message across the state. Each kit will be reimbursed from the grant.

For more information regarding this program, click here.

According to Agweek, North Dakota’s Gov. John Hoeven along with the North Dakota Ethanol Council have announced the establishment of a new program that will fund North Dakota Ethanol Council’s marketing activities by dedicating a share of the industry’s production profits to promotion of ethanol. The check-off program will dedicate 3/100ths of one cent per gallon of ethanol produced and sold to these efforts.

“North Dakota’s agricultural economy and rural communities have directly benefited from the growth of the ethanol industry in our state,” Hoeven said. “Ethanol creates jobs and boosts income for our farmers.”

The North Dakota Ethanol Council includes representatives from all of the state’s major ethanol producers, including ADM Corn Processing, Walhalla; Blue Flint Ethanol, Underwood; Hankinson Renewable Energy, Hankinson; Red Trail Energy, LLC, Richardton; and Tharaldson Ethanol Plant, Casselton.

“As an industry, we are excited to have the Council established and staff hired,” says Jeff Zueger, NDEC chairman and Blue Flint Ethanol general manager. “These steps allow us to move forward with a coordinated effort to expand the ethanol industry in North Dakota.”

According to the Associated Press, the Ohio Turnpike Commission has announced plans to open up two “green” rest areas, powered by renewable energy such as wind or solar power and they will carry E85.

The new service plazas will be built on both sides of the turnpike in Ohio’s Williams County. Along with E85, the facilities will allow for recharging of electric cars and cable and Internet hookups for parked trucks. The stops will also feature gas pumps, restrooms, restaurants and gift shops. The new facilities should open next year.

Currently, Ohio has 64 E85 locations throughout the state. Although details have not yet been released, the Ohio Department of Development will be offering grants to assist with additional E85 retail infrastructure. These funds are allocated for the current state budget ending in July 2011.

A subsidiary of Zeeland Farm Services of Michigan recently acquired an idled ethanol plant in Cambridge, Nebraska.

Nebraska Corn Processing (NCP) is the name of the subsidiary that plans to resume production at the plant as quickly as possible this year. The plant was built in 2007 but was idled for much of 2009. “This acquisition will allow NCP to gain a foothold in the energy industry and to further invest in agriculture,” explained Cliff Meeuwsen, company president. “Our goal is to develop viable business opportunities that will benefit NCP, agriculture and the communities in which we reside.”

Zeeland Farm Services is an agricultural and transportation company serving the upper Midwest since 1950. The company’s Grain Division will provide commodity price risk management services to NCP while the Ingredients Division will market the animal feed co‐products that are produced from the plant to the livestock industry.

Texas fuel retailers are now selling 10 percent ethanol. Local gas stations have been updating filters, checking tanks and applying green ethanol-blend stickers to put on pumps, but such a change is not without its cost and problems for retailers. The ethanol mixture is the result of 2005 and 2007 federal energy acts requiring specific benchmarks for refineries to produce cleaner-burning fuel.

“Because ethanol is the only biofuel source with sufficient production and base feed stock to meet these mandates, it has been the most widely used by refiners to meet the new federal mandates,” said Chris Martin, spokesman for the Texas Petroleum Marketers and Convenience Store Association. Mandated amounts of renewable fuels will increase each year between now and 2022, Martin said, thus the 10 percent ethanol mixture will eventually increase, probably to 15 percent.

Any vehicle on American roads can use E10 and should have no problem. Only flexible fuel vehicles can use higher blends of ethanol such as E85. There are currently 42 E85 stations in the state of Texas.