Domestic Fuel

Bikers come a long way to go to the Sturgis Motorcycle Rally. Probably none came any further than these folks from Queensland, Australia. They got some nice t-shirts from the on-location ethanol team.

I asked them what they thought of using renewable fuels like ethanol. The answer, “I guess we’re really going to have to do something about an alternative fuel because I don’t think that the oil resources are going to last forever so we’ve definitely got to look somewhere else for our fuel needs.”

You can listen to my interview with our Australians here: Australians at Sturgis Interview

2011 Sturgis Motorcycle Rally Photo Album

India’s second largest petroleum company, Bharat Renewable Energy (BREL), has partnered with SG Biofuels (SGB) to develop sell jatropha hybrids modified for the production of biodiesel in India. The first phase of the program will focus on crop development aimed at creating oil-rich jatropha hybrids suited to growing conditions throughout India. The next phase will consist of deploying more than 86,000 acres of jatropha using SGB’s JMax hybrid seeds.

“With the genetic diversity of their Jatropha hybrid material combined with ability to produce large volumes of hybrid seed, SG Biofuels is an ideal partner to work with to successfully develop, validate and scale Jatropha as the primary source for biodiesel in India,” said Mr. M.V. Radhakrishnan, chief executive officer of BREL.

Through molecular breeding and biotechnology, SGB is optimizing jatropha hybrid varieties at its JMax crop development centers. The centers feature hybrid material from SGB’s germplasm library totally more than 12,000 genotypes. The company will work with BREL to select, test and scale up the hybrids most suited to various growing regions across India. The ultimate goal is to grow jatropha suited for biodiesel production to help meet the country’s National Policy on Biofuels targets of blending 20% of fuels with ethanol and biodiesel.

“We look forward to working with BREL to develop a thriving Jatropha industry capable of meeting the country’s significant demand for biodiesel,” added Kirk Haney, president and chief executive officer of SGB. “Our partnership is a great example how collaborations across the entire value chain – from crop science and agronomics to downstream refining and logistics – are the key to the successful scaling of Jatropha.”

On Friday, July 15th, Lufthansa flew using a biofuel blend produced by Neste Oil. The NExBTL renewable aviation fuel was such a resounding success that now Airbus A321 Lufthansa-operated flights flying between Hamburg and Frankfurt will use this fuel, in both directions four times a day. One engine will run on a 50-50 NExBTL/fossil fuel blend while the other engine will be powered with fossil fuels only. This announcement makes Lufthansa the first airline in the world to incorporate biojet fuel into its operations for commercial flights.

“We are naturally very proud to be global pioneers with Neste Oil in using renewable fuel on regularly scheduled flights,” said Christoph Franz, the Chairman of the Executive Board and CEO of the Lufthansa Group.

These commercial biofuel flights are now able to take place because just last month ASTM International approved the use of renewable aviation fuel.

“Lufthansa has been our customer for a long time, and we are now very pleased to be leading together the adoption of renewable fuels in aviation,” added Neste Oil’s President & CEO, Matti Lievonen. “Neste Oil’s NExBTL technology is very well-suited to producing aviation fuel. All our NExBTL plants are capable of yielding fuel that meets the aviation industry’s toughest quality standards. This is an area in which Neste Oil will look for growth in the future.”

Neste Oil’s biojet fuel is made from a blend of vegetable oils and waste fats including camelina, jatropha and waste animal fats. The fuel is compatible in all current aircraft engines with no engine modifications required.

Cellulosic ethanol has achieved a victory. The Dynamo, a concept car created by a student team called the Roadrunners, and fueled by ethanol made from straw, won the Urban Concepts class of the 2011 Shell eco-marathon in Europe. In tandem to the win, the car set a new miles per gallon record of 1,197 (509 km/1) when adjusted for energy equivalence with gasoline. The cellulosic ethanol was provide by Inbicon and was produced at their the Inbicon Biomass Refinery in Kalundborg, Denmark.

“The Roadrunners team from the Technical University of Denmark designed, built, tuned, tested, and drove the Dynamo to victory over all 35 European teams competing. And they also beat North America and Asia’s winning mileage,” said Christian Morgen, Inbicon manager of international marketing. “Since they use only a liter at a time, I don’t believe there’s any danger of depriving Danish retail customers of our eco-friendly fuel.”

The winning team was overseen by Jesper Schramm, a DTU associate professor. Six out of the last seven years his team has taken the trophy for energy efficiency in one of two main categories. A car is designated as an urban concept car, if with minor modifications, it could actually operate on city streets. This year is team used a 50cc 4-stroke Yamaha moped engine because the higher compression rate is able to take advantage of the higher octane level of ethanol fuel. To hone-in on an aerodynamic car, the team used wind-tunnel testing. Amazingly, the Dynamo ran 28% farther than its closest competitor.

More than 3,000 students and 187 teams from 27 countries took part in the eco-marathon held at the EuroSpeedway in Lausitz, Germany. Professor Schramm hopes that the experience and knowledge that has come from this project will launch their careers in a multitude of industries including automotive design and engineering.

Inbicon has coined its fuel “The New Ethanol” and has been producing it for use since 2009. Using Kalundborg as a guide, Inbicon plans on rolling out its biomass-based cellulosic ethanol worldwide.

Photos: Dynamo races to eco-victory at German speedway & Winning Roadrunners team, Technical Institute of Denmark. *Photo Credits Kasper Duncan Gram

Europe’s $13 billion biodiesel industry could be in jeopardy according to an article published by Reuters that claims that the European Union (EU) plans to tackle unwanted side effects of biofuel production. The turn-about in support of biodiesel has been in part spurred by fear over climate change and several recent papers leaked from the European Commission that purport that biodiesel’s indirect impacts cancel out the majority of its benefits.

As the EU looks to increase current biodiesel use from 3 percent to 10 percent by 2020, they are also concerned that such a move would increase environmental damage rather than reduce environmental concerns. Their own analysis concludes that a 10 percent biodiesel mandate could lead to “an indirect one-off release of around 1,000 megatonnes of carbon dioxide — more than twice the annual emissions of Germany.” In addition, one report concludes that more use of biofuels could “squeeze food supplies and increase global hunger.”

The studies to which Reuters is referring have not been released by the European Commission and the authors surmise it is because it would “have significant implications for the existing EU biodiesel industry.”

These negative impacts could include a reduction of investments in plants and infrastructure. It could also cause a reduction of biodiesel use, rather than what the country has been aiming for since 2003, an increase in biodiesel use.
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Algae.Tec Limited in collaboration with Manildra Group have announced the construction of an algae demonstration facility in Shoalhaven One, in Nowra south of Sydney, Australia. Manildra Group is the country’s largest ethanol producer. Algae.Tec Executive Roger Stroud said the partnership contract has been signed and final logistical plans are being made and submissions for permits are also in the works.

“The Algae.Tec algae photo-reactors will be sited next to main facility and take a carbon dioxide feed from the main ethanol fermenters,” said Stroud. “Algae.Tec is one of only a few advanced biofuels companies globally with a technology designed to grow algae on an industrial scale and produce valuable biofuels that replace increasingly expensive fossil fuels.”

According to Algae.Tec, their technology captures carbon pollution from power stations and manufacturing facilities which feeds into the algae growth system. Currently, photo-reactors are being assembled at their Algae Development & Manufacturing Centre in Atlanta, Georgia. These photo-reactors use one-tenth of the land that is required when growing algae in ponds and the company said their enclosed module system is designed to produce the highest yield of algae biomass in nearly any environment on Earth.

The Paris air show is taking place this week and biofuels have taken to the air in a dramatic fashion. Today, the European Commission and Airbus, along with several leading European airlines and European biofuel producers, have launched a new industry wide initiative to try and speed up the commercialization of aviation biofuels throughout the country. “Biofuel Flightpath,” is a roadmap with precise actions to achieve the goal of two million tonnes of biofuel used each year by the aviation industry by 2020. As part of the plan, the biofuels will be produced using biomass from Europe. The plan has the backing of the European Commissioner, Günther Oettinger, Airbus CEO Tom Enders, and other key industry players.

“This is a unique opportunity to create the first industrial venture ever introducing sustainable biofuels for commercially competitive operations. The Commission therefore fully supports all efforts in this direction and will actively contribute to their success. They are fully in line with our European Strategic Energy Technology Plan,” said Mr Günter H. Oettinger, European Commissioner for Energy.

The Biofuel Flightplan also lays out a plan to establish much needed financing to bring aviation biofuel technology to market at commercial scale biorefineries. More specifically the Biofuel Flightpath aims to:

• • Facilitate the development of standards for drop-in biofuels and for their certification
• • Work together with the full supply chain to further develop worldwide accepted sustainability certification.
• • Facilitate dedicated aviation biofuel production at a reasonable cost by agreeing to tangible biofuel supply and purchase commitments.
• • Promote appropriate legislative measures to ensure the market uptake of paraffinic biofuels by the aviation sector.
• • Accelerate research and innovation into advanced biofuel technologies, including algae.
• • Establish financing structures to facilitate sustainable biofuel projects.
• • Publicly promote the benefits of replacing kerosene by sustainable biofuels.

Marcell Ulrichs, CEO of CHOREN Industries who is in the process of building an advanced biofuels plant in Germany, added, “Aviation biofuels are today technically possible and our biofuels sector is ready to help meet the Flightpath targets towards its commercialisation. Together with airlines and public stakeholders, we will create viable and cost competitive business cases for the production and utilisation of sustainably produced aviation biofuels. We are committed to enabling the global aviation community to reduce its carbon footprint and its dependence on crude.”

Biofuels survived a challenge on the international level this week as agriculture ministers meeting in France declined to recommend countries limit production to avoid impacting food prices.

The agreement reached by the ministers mainly focuses on creation of an agricultural market information system and removing barriers to food exports for humanitarian purposes. The ministers did call for further analysis of the impact of biofuels on food availability, price volatility and sustainability. “We also recognize the importance of research and development on biofuels, including those produced through new processes or new feedstocks, non-food feedstocks and other vegetable materials,” they said in their declaration.

Agriculture Secretary Tom Vilsack noted that biofuels development can help alleviate spikes in oil prices that impact food prices. “Furthermore, our work to support innovation in the development of non-food feedstocks and next generation renewable fuels will continue to help offset instability in the energy market, which accounts for the bulk of food and commodity price fluctuations in the past decade,” he said.

The European ethanol trade group ePURE said the ministers’ decision “recognizes the vital role of biofuels in reduction of greenhouse gases, energy security and rural development and said that there was not enough evidence to link biofuels to food price volatility. The European ethanol industry welcomes the decision by the G20 to vanquish the myth that biofuels are responsible for food price volatility.”

Agriculture Secretary Tom Vilsack says he intends to defend biofuels at the G-20 Summit of Agricultural Ministers in Paris this week, stressing their importance to the economy and the environment.

“America is working on developing new feedstocks that don’t pit food versus fuel but that create new rural economic opportunities and allow us to continue to expand on our efforts to build a much more renewable energy source,” said Vilsack, who is attending the Paris Air Show prior to the G20 meeting to discuss biofuels for aircraft that can be made from dedicated energy crops.

The focus of the summit is on international efforts to ensure global food security and some groups are insisting that necessitates a change in biofuels policies. Oxfam is calling on Vilsack and the agriculture ministers of the other G20 countries to “urgently remove the types of biofuels subsidies and mandates that are leading to increased price volatility.”

The biofuels industry meanwhile is urging the ministers to examine the impact of crude oil price on food price volatility.

“It is imperative that the G20’s Agriculture Ministers use this first meeting to recognize that there is a direct and strong correlation between the price of crude oil and the price of food,” stated Bliss Baker, spokesperson for the Global Renewable Fuels Alliance (GRFA).

This will be the first meeting of all agricultural ministers in the Group of Twenty (G-20), which includes the United States, Argentina, Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudia Arabia, South Africa, the Republic of Korea, Turkey and the United Kingdom.

This month, Brazil has resumed exporting ethanol to the United States, at the same time the country is struggling to meet its own country’s demand for ethanol to fuel is flex fuel vehicles (FFVs). Ethanol producers in the country have expanded exponentially – there are more than 115 ethanol plants many of which have come online since 2005. However, despite massive investments by foreign companies into the country’s biofuels industry, nary a five new ethanol plants are expected to come online the remainder of this year.

Some may remember that last year due to a decreased sugarcane harvest caused by excessive rains, the country reduced its minimum ethanol requirements in the country’s fuel. Then this year, threat of another reduction circulated when once again the sugarcane harvest was lower than expected. In response, the government has cited ethanol shortages due to poor long-term strategic planning by the industry. The ethanol industry countered that the cause of problems lies in lack of uneven taxes, vague plans for future regulation and lack of investment incentives.

“As long as there is no clarity about the policy for fuels, there is a risk for investments,” said the president of Sao Paulo-based Datagro consultants, Plinio Nastari in a Reuters article.

Yet on the flip side of this bickering between the Brazilian government and Brazilian ethanol producers, the industry has once again begun exporting fuel to the U.S. over the past few months. According to brokers quoted in a recent Soyatech article, the ethanol industry has exported 1.9 million barrels to the U.S. as a result of fuel retailers needing to meet the requirements of the Renewable Fuels Standard.

Brazilian sugarcane ethanol has been considered an advanced biofuel as designated by the U.S. Environmental Protection Agency (EPA). Since there is a shortage of advanced biofuels being produced in the U.S., sugarcane ethanol has become a premium fuel for the obligated parties. Ironically, the exportation of ethanol was an abrupt change as earlier this year Brazil imported ethanol to meet its country’s mandates – the first time since 1994.
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The largest electric vehicle (EV) trial is underway in Canada. According to Hydro-Quebec, a number of Mitsubishi iMiEVs have been delivered to several Boucherville businesses selected to participate in the second phase of the EV trials. The iMiEV stands for Mitsubishi Innovative Electric Vehicle and is an all-electric, plug-in vehicle with zero tailpipe emissions. The iMiEV can travel 120 km, or 74.5 miles, on a single charge. Using a 240-volt outlet, the car can be charged in 6 hours, or 13 hours using a 120-volt outlet. However, using a quick-charge station, the EV’s battery can complete an 80 percent charge in 30 minutes.

“We are delighted with the response we’ve received from Boucherville businesses. This second phase brings us to the very heart of the project, focusing on the needs of businesses and their employees who work in Boucherville,” said Thierry Vandal, President and Chief Executive Officer of Hydro-Québec.

The EV testing was coordinated by Hydo-Quebec and have been designed to study users’ charging habits, driving experiences and overall satisfaction. In addition, the tests will study vehicle behavior when the cars are plugged in to the electric grid. On April 7, the Quebec government passed the Action Plan for Electric Vehicles and this EV testing program is part of that initiative.

“I hope that drivers working for the businesses selected in the second phase will be as delighted as I am to be driving an i-MIEV! The project has not only caught the attention of Boucherville businesses, but also sparked considerable interest among citizens,” said Jean Martel, Mayor of Boucherville and spokesperson for the project’s institutional users.

Koji Soga, President and CEO of Mitsubishi Motor Sales of Canada said of the project, “Our partnership with Hydro-Québec and our joint pilot project have met with much success over the last four months. The data collected and monthly reports have demonstrated that the i-MiEV technology is well suited to the Canadian market. The second phase of our program will help us better understand all-electric vehicles and will give them more visibility, allowing Québecers to become more familiar with this technology.”

Global Wind Day is around the corner on June 15, 2011. Organized by the European Wind Energy Association (EWEA) and the Global Wind Energy Council (GWEC), the groups hope to use the day to educate people about the benefits of wind energy through fun activities. Last year there were 220 events in 29 countries that took place from Austria to Australia, to Japan and Germany to Canada, Uruguay and the Ukraine, citizens will be able to participate in various activities including parachuting from wind turbines, watch open air theater, build kites for kite surfing and visit wind farms. In addition, there will be wind industry job fairs throughout the world.

“With wind, we can achieve a genuine energy revolution, and on 15 June, people on all continents celebrate the promises that wind power holds for our planet,” said GWEC’s Chairman Klaus Rave.

Event highlights include the German Technology Museum in Berlin opening its doors for a wind energy exhibition and an announcement in New York City of WindMade – an initiative to develop a consumer label for companies and products using wind power.

EWEA President Arthouros Zervos added, “Fukushima, the Arab spring and the oil spill in the Gulf of Mexico have created enormous public interest in the future of energy. Global Wind Day encourages citizens to find out for themselves how wind can make our energy supply more secure and environmentally friendly.”

To learn more about events near you visit www.globalwindday.org.

A new report, “Growing a Better Future,” has the ethanol industry up in arms over its accusation that U.S. biofuel policy is leading to world hunger. The report kicked off a new worldwide GROW campaign spearheaded by the organization. The report covers the symptoms of today’s broken food system: growing hunger, flat-lining yields, a scramble for fertile land and water, and rising food prices while the GROW campaign attempts to overcome these issues.

The report predicts that the price of food, already at a record high, will more than double in the next 20 years. In addition, by 2050, demand for food will rise 70 percent, yet the report says the world’s capacity to increase food production is declining. A contributor to these issues: global climate change and pro biofuel policies throughout the world.

“Our world is capable of feeding all of humanity yet one in seven of us are hungry today,” said Jeremy Hobbs, Executive Director of Oxfam. “In this new age of crisis, as climate change impacts become increasingly severe and fertile land and fresh water supplies become increasingly scarce, feeding the world will get harder still. Millions more men, women and children will go hungry unless we transform our broken food system.”

Both Growth Energy and the Renewable Fuels Association acknowledge that Oxfam is partially correct in their identifying the role that high oil prices and international trade have on the price of corn. However, they diverge with the report on biofuels being a cause of starving “millions of people” as the report purports.

“Oxfam is wrong to propose ending the Renewable Fuel Standard or the biofuels tax credit, as these are the most effective policies we have to displace oil – a primary driver of rising grocery prices,” said Jim Nussle, Growth Energy President. “It is unfair and erroneous to single out ethanol for high food prices, especially because the U.S. ethanol industry uses just three percent of the global grain supply on a net basis.”

RFA President Bob Dinneen highlighted the significant improvements in agriculture over the past few decades and called for more widespread adoption of improved agricultural practices worldwide. “The same opportunities at varying scales are available to farm communities in developing nations. Together with improved farming technologies, local biofuel production can provide developing rural economies with the kind of economic prosperity needed to become more food secure,” concluded Dinneen.

Students around the world are in search of new alternatives to fossil fuels. Several biotech students in Surat, Gujarat are studying the water hyacinth as a feedstock to produce ethanol. The students are looking for ways to reduce fuel costs – earlier this month the Central government announced that the price of fuel would increase five rupees across the country. Ethanol is also of interest because it can be used as a fuel for heat and light as well as a transportation fuel.

“Our objective of the project is to produce ethanol, which is a cheaper source of energy. Currently, ethanol is produced from grinds and sugarcane, but they are costing between 12-15 rupees per piece. We want to help cut down the price of fuel in the market, by using waste material, which is called Eichhornia (Water Hyacinth), which grows plenty in the wastewater and fresh water,” said R.K. Krishnamurthy, a biotechnology professor in an article in DailyIndia.com.

Krishnamurthy continued, “In another way it is creating pollution to the water bodies. We want to use those materials which is available at a throw away cost, it is freely available.”

The water hyacinth is considered an invasive pest by researchers; yet, it could be a viable ethanol feedstock because of its abundance in hydrosphere. The research team is collecting samples, then they wash them and dry them overnight at high temperatures. From there the dried water hyacinths are crushed and treated with diluted Sulphuric acid. Eventually, yeast is added and the plant is fermented to ethanol.

The students are racing against the clock. They are trying to produce a product to help mitigate the rising cost of fuel as well as meet the government’s goal of increasing biofuel production and use by 2012.

Shweta Patel, a biotechnology student added, “By 2012, we aim to increase the production of ethanol and reduce pollution by 10 percent in our area. Our target is to create as much as bio-ethanol and help the government.”

The G8 Summit and the OECD’s annual International Transport Forum has kicked off today in Leipzig, Germany to discuss the future of transportation on a global scale. During the event, the Global Renewable Fuels Alliance (GRFA) is calling on them to immediately adopt the International Energy Agency’s (IEA) Technology Roadmap: Biofuels for Transport. This roadmap suggests that biofuels could account for more than one quarter of the world’s transport fuels by 2050.

Bliss Baker, spokesperson for the GRFA, said, “Meetings like these are crucial opportunities to address energy security issues that must not be wasted. In April the IEA provided a comprehensive roadmap for reducing our crude oil reliance which included the widespread use of biofuels and we must take advantage of this opportunity.”

GRFA noted that record gas prices have occurred worldwide during the month of May. Baker stresses that a diversified fuel supply system will “alleviate our crippling reliance on crude oil.” This is the same strategy promoted by the IEA report. To support the organization’s position on biofuels, Baker highlighted two U.S. university economists who found that the presence of ethanol in the U.S. fuel supply kept gasoline prices 89 cents lower per gallon than if ethanol were not blended in the fuel. He also conveyed that even OPEC recognized in a recent forecast that “energy efficiency policies along with the use of biofuels will put downward pressure on oil consumption worldwide.”

Some of the findings of the report included:

• Biofuels providing 27% of global transport fuel by 2050
• Avoiding 2.1 gigatonnes of CO2 emissions by displacing gasoline
• Achieving these targets without compromising global food security

“The GRFA has long advocated that biofuels are the best way for the world to reduce its reliance on crude oil. In light of the IEA’s findings it is imperative that the G8 and OECD recognize the vital role biofuels can play in solving some of the world’s energy security problems,” Baker concluded.