Domestic Fuel

America’s first eco-sustainable city is taking its first steps toward sustainable energy.

Destiny, Florida, as you might remember from my February 27, 2009 Domestic Fuel podcast, is a 41,000-acre community founded in 2005 in South Central Florida. Among the city’s eco-friendly features is The Sustainable Energy Farm that produces power from biodiesel, ethanol, solar and wind sources for companies that contribute to sustainable industries, such as building solar panels. Officials hope that one day, the city will have 16,000 green tech jobs. That energy park recently got a green boost when some sustainable feedstock sources… including jatropha, camelina, and new hybrids of sweet sorghum… were planted for study of the next generation of renewable and alternative fuel sources. This press release has details:

Several varieties of sweet sorghum were donated by Global Renewable Energy, and planted by Everglades Farm Equipment with the self-steering, precision guidance Autotrac system, which enables crops to be planted more efficiently, waste less seed, and fertilize more accurately. A new drip fertigation system, designed to reduce water waste, will be overseen by Treasure Coast Irrigation. The camelina, a new potential candidate in the biofuel market, and jatropha were planted by Bio Greens Oils USA.

To determine the validity of these crops as future fuels, scientists at the University of Florida will research yields per acre, water and fertilizer consumption, different harvesting techniques, and suitability to the Central Florida climate.

Officials say that Destiny is in the “sweet spot” for biomass production with long-growing seasons and large tracks of land for fields of these new feedstocks. We’ll keep tracking the success of the city and let you know how things go.

Today’s Earth Day Celebration is brought to you in part by the book, “Green Hell” written by Steve Milloy. I’ve never met or spoken to the man, but I can presume that he is not a celebrator of Earth Day since his entire book is dedicated to stopping the “greens.” The premise of his book is to educate the public on how environmentalists are trying to control our lives and what we can do to stop them. He writes, “While it is beyond the scope of this book to debunk the scientific claims of global warmists, we’ll take a brief moment here to note the fatal flaw of global warming alarmism: there is no scientific evidence indicating that carbon dioxide, much less man made carbon dioxide emissions, control or even measurably impact global climate.”

Milloy demonstrates the evils of the environmental movement by highlighting the extreme environmental “wackos” such as biologist Paul Ehrlich who has “railed against consumption virtually as a crime against humanity.” Even as a self-proclaimed lazy environmentalist, I think Ehrlich and some of his pals have gone off the deep end. But that being said, Milloy does have some valid points, especially when he talks about next generation transportation fuels. He speaks about how environmentalists are promoting “biofuels” but at the same time are lobbying against them. “Looking closer, we find that greens display their typical schizophrenic attitude towards ethanol. Even while touting is supposed superiority to gasoline, greens denounce ethanol for the environmental damage it causes.”

One of two things will happen if you read this book, you’re either going to agree wholeheartedly with him (many do) or you’re going to become even more passionate about saving the planet. But I think the real lesson to be learned is that moderation (nothing is perfect) is the key – we shouldn’t have to ruin our lives and those things we hold dear while still “doing right” for the planet.

You can buy “Green Hell” or any book I review here, and Happy Earth Day to everyone.

The police department in Hoover, Alabama will soon be receiving wood-based ethanol to fuel their flexible fuel vehicles (FFVs). A Livingston demonstration plant, Gulf Coast Energy, will be producing the ethanol.

About 100 gallons of wood produced E85 will be delivered to the police department, “We wanted to get there and show everybody we can do this in this country,” said Mark Warner, the chief executive of Gulf Coast Energy, the plant operator. He also said that this is the first time municipal wood waste has been transformed into a liquid fuel.

Gulf Coast Energy, Inc. was founded with the intention and mission to “change the world,” through the manufacturing of alternative, environmentally friendly, renewable biofuels. The company states that they developed a unique approach to the manufacture of alternative fuels that takes advantage of the latest state-of-the-art modular process technology for converting biomass to ethanol and other carbon-based fuels such as diesel and possibly gasoline among others.

A landfill in Dallas, Texas will soon be the source of renewable biomethane that will be burned to create electricity.

This story posted on the Environmental Protection Web site says that Clean Energy Fuels Corp. has inked a 15-year deal through its subsidiary, Dallas Clean Energy, to sell the biomethane produced at the McCommas Bluff landfill:

Beginning this month, the biomethane will be sold at fixed prices that increase in 2010 and 2011 and then remain fixed over the remainder of the agreement. The price for the “green” gas was not disclosed but represents a significant premium to the prevailing price for conventional natural gas.

“This gas sale agreement validates selling renewable biomethane as a valuable, low-carbon fuel. It provides Clean Energy with a sound, long-term revenue stream and also supports expansion of the plant’s production capacity for additional gas sales, including potential use as vehicle fuel,” said Andrew J. Littlefair, Clean Energy president and chief executive officer “Many of our largest customers are showing interest in biomethane for their fleet vehicles as it is one of the best alternative fuels to meet new Low Carbon Fuel Standards coming in California and other states.”

The McCommas Bluff landfill gas operation is among the biggest landfill gas operations in the country. Officials estimate it will continue to produce quality methane gas for 30 years after its closing in the year 2042.

A Longview, Texas-based maker of terminal tractors has introduced a hybrid electric version of the vehicle.

This press release from Capacity of Texas announces the PHETT… Pluggable Hybrid Electric Terminal Tractor:

“As a leader in the terminal tractor industry, we are pleased to offer our Pluggable Hybrid Electric Terminal Tractor. Developed and built in Longview, TX, through a grant from the Texas Environmental Research Consortium and the Texas Commission on Environmental Quality, this product will change perceptions and reduce operational expense of terminal tractors. The PHETT(TM) will also reduce emissions at all Ports, Intermodal Yards and Warehousing/Distribution Centers not only in North America, but throughout the world,” stated Phillip Ford, President of Capacity of Texas.

The PHETT is a charge sustaining series hybrid that utilizes a constant and efficient rate generator to supply power, reducing fuel consumption by 60% and audible db by 30%. With the lowest operational cost per hour, the PHETT also incorporates an AC traction motor and on-board grid-charging system. Integration and introduction of this technology into the flagship Capacity Trailer Jockey(R) line included review and redesign of front & rear axles, steering system, frame structure, suspension and isolation of components as well as adjustments for cab interior space requirements; all resulting in optimum performance and design for terminal tractor applications.

Capacity of Texas is the biggest American owned manufacturer of terminal tractors in North America.

Although the ethanol plant said it needed $10 million to stay in business just four months ago, Show Me Ethanol in Carrollton, Mo. has reached a loan agreement and will afloat after raising $5.9 million from shareholders.

The group that financed the construction of their 55 million gallon per year plant, FCS Financial, formed another agreement with the ethanol plant. Show Me owed its biggest shareholder, Ray-Carroll Grain Growers of Carrollton, $15.5 million on forward purchase contracts. Ray-Carroll agreed to cancel $2 million of that debt, accept a $1.5 million payment and convert the remaining $12 million into a promissory note. Show Me was able to count the $2 million in debt cancellation as part of the $5.9 million in new capital.

Show Me Ethanol posted a net loss of $18.98 million just two weeks ago, including a $14.1 million loss on forward contracts to purchase corn.

The oil loving Wall Street Journal (WSJ) published an article today about the “peak of gasoline”.  Many analysts are predicting that with the rise in biofuels production, fuel economy and gasoline prices (although they are holding steady around $2.00 per gallon on average) and the current depressed state of the economy, we’ve seen “peak” gasoline use, at least in the U.S.

According to information released by the U.S. Energy Information Administration (EIA), drivers pumped 371.2 million gallons of non-ethanol gas every day in 2007. EIA anticipates a 6.9 percent decrease in 2009 to 345.7 million gallons, citing reduced gasoline demand and increased use of ethanol blends. Although some sources report that gasoline use today is higher than last summer, the EIA predicts that future gasonline demand will never exceed 2007 levels.

In addition, WSJ reports that, “Demand for all petroleum-based transportation fuels — gasoline, diesel and jet fuel — fell 7.1% last year, according to the EIA. This is the steepest one-year decline since at least 1950, as far back as the federal government has reliable data.”

This is great news for ethanol producers, especially as there are an estimated 300 million gallons of cellulosic ethanol ready and waiting to enter the fuel market. The historical barriers to an increased market for ethanol have been lack of infrastructure for E85 and mid-level blends and the need to raise the ethanol blend wall. Last month the ethanol industry joined together to file an E15 waiver, which is currently under EPA review and there is talk about the possiblity of biofuels infrasture funding from the federal government.

In the meantime, it appears that Big Oil is taking the decrease in gasoline production to heart and is activiely pursuing entry into the biofuels market.

There are many creative and fun events on the horizon as we approach Earth Day. Those of you in California may want to check out Wine and Shine 2009, a  solar tour and wine tasting that features local wines and three innovative solar energy systems that are helping three featured wineries save hundreds of dollars in energy costs.

The event is Friday, April 24 from 10:00 am – 2:00 pm and features J. Lohr Vineyards & Wines, Eos Estate Winery and Clautiere Vineyard in Paso Robles, CA. Recently, agriculture has been unfairly vilified for its lack of environmental stewardship and the participating wineries will be showcasing both their agricultural environmental initiatives along with their green business practices.

The event is sponsored in part by Conergy, an energy company that designs, manufactures, installs, and finances solar photovoltaic solutions for businesses and homeowners. There has been a significant increase in development and demand for solar energy through the federal economic stimulus package and the California Solar Initiative. These programs combined have the potential to off-set the costs of installing solar energy technologies between 80-90 percent.

For more information about Wine and Shine 2009 or to reserve your spot, email RSVP@wineandshinetour.org.

Amid concerns and criticisms of the near-term viability of cellulosic ethanol, VIASPACE Inc. has announced plans to expand production of its proprietary grass feedstock Giant King Grass. The Company’s goal is to supply nonfood feedstocks for the production of cellulosic ethanol, methanol and “green gasoline.”

The first major Giant King Grass crop was planted in October 2008 in Guangdong Province China and to date, is demonstrating survivability in all weather conditions. The perennial grass is propagated by seedling rather than seeds and each plant can generate between five to 10 new seedlings. Another advantage of this plant is that is can be harvested four times a year. VIASPACE is negotiating to lease more land and anticipates to have 300 acres growing by September.

Several petroleum companies have made recent plays in the biofuels market including BP’s recent announcement that it would build a cellulosic plant in Florida using grass as the primary feedstock. In addition, Shell has significant investments in cellulosic ethanol produced from switchgrass.

Despite uncertainty, fast-tracking cellulosic ethanol to market is gaining political support as research demonstrates its starring role in the recently proposed low-carbon fuel standard economy.

Carl Kukkonen, VIASPACE’s Chief Executive stated in a company release, “We see this renewable energy segment of our business as an opportunity to participate in the expected growth of cellulosic biofuels as an environmentally friendly, non-petroleum source of energy.”

It’s named for the Greek phrase for wingless flight and practically slips through air nearly as effortlessly as Lance Armstrong bicycling through France (half the drag of a Toyota Prius). The beauty you see on the left is the battery-powered Aptera 2E… a three-wheeled, two-seater due out this fall.

Mother Nature News’ Jim Motavalli road along with Aptera CEO Paul Wilbur as they took the green car out for a spin in New York City:

Wilbur didn’t let me drive the car—it was New York, I guess—but I rode shotgun for enough miles to form an opinion. Like most EVs, it was fairly quiet, though noisier than most, and the potholes and cobblestones set off some rattles. The car was comfortable and felt stable on its three wheels, but a few minutes behind the wheel would have allowed more of a diagnosis.

Despite the undeniable strangeness—the Aptera could have been made for a 1960s science-fiction film featuring people of the future in jump suits—the company is serious about building a mainstream vehicle. “Tesla is the new Ferrari,” says Wilbur, gunning past a startled pretzel vendor. “We want to be the volume player in a radical new arena.”

The company is making three differently-powered models… the battery model, a gas-electric series hybrid and a conventional .7-liter gasoline car… all priced between $25,000 and $45,000. The one that runs on batteries is the one out this fall, while the other two models come out next year.

Aptera says the gas-powered model will get 100 mpg and cruise for a thousand miles. And the 2H, the hybrid, will trickle-charge the batteries on the way.

The Aptera plant in California can churn out 20,000 vehicles a year but expect just a few thousand in the first year. Company officials hope to make up to 100,000 annually.

Robert Friedland, President and CEO of Proton Energy Systems, will  be honored today with a coveted service award from the National Hydrogen Association (NHA) during its annual national conference being held in Columbia, SC. The 2009 Award for Meritorious Service is presented annually to three individuals who exhibit exceptional leadership and contributions that further the development of the hydrogen industry. Proton Energy Systems designs and manufactures proton exchange membrane (PEM) electrochemical systems to convert water to hydrogen.

In a company press statement released early today, NHA President Jeffrey A. Serfass was quoted as saying, “Mr. Friedland’s remarkable record of achievement over the years cannot come at a more critical moment, as energy security and green energy are major issues confronting our nation. I cannot think of a more worthy recipient for this award.”

Friedland, co-founded Proton Energy in 1996, is also being commended for his role and mentorship in providing smaller emerging hydrogen technology companies with examples of solid financial and marketing business models.

“I am honored to accept this National Hydrogen Association award on behalf of Proton Energy Systems,” said Friedland.  “Proton’s mission has always been to develop hydrogen technology in creative and practical ways that can benefit our customers and advance green energy possibilities and potential throughout the globe.”

Both Chrysler and General Motors (GM) reportedly did not meet the terms of their Federal loans but they will be given a second chance to restructure and survive. This news is admist General Motors Chief Executive Rick Wagoner, who led the company for nine years, stepping down at the request of the Obama administration and Chief Operating Officer Fritz Henderson taking over.

GM will be given sixty additional days of working capitol to meet the terms agreed and Chrysler will be given thirty days to work a deal with Fiat.

Both companies have said that bankruptcy would decrease sales because consumers wouldn’t buy a car from a company that might not be around to honor the warranty and provide service and spare parts. “Let me say this as plainly as I can. If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired just like always,” Obama said in a speech today. “Your warranty will be safe. In fact, it will be safer than it has ever been. Because starting today, the United States will stand behind your warranty.”

GM and Chrysler both produce many models of flexible fuel vehicles in model year 2009 and have promised to produce half their line as E85 compatible by 2012.

Hey – in case you haven’t heard, tar sands are going to save the world. They are a renewable fuel you know. Wrong and wrong. Today, a new documentary focusing on the controversy surrounding the development of Alberta’s oil sands, “Downstream”, will be entering the US TV market, just in time to fire people up for Earth Day. Downstream is a modern day re-telling of “David vs. Goliath” or the tiny town of Fort Chipewyan versus Big Oil.

Tar Sands Before and After

The film was produced by academy award nominated filmmaker Leslie Iwerks and is available to watch on Babelgum’s online TV site, Our Earth. It has premiered at film festivals around the world and already been shortlisted for an Oscar. The film takes you on a journey through a town negatively affected by the environmental impacts of oil development. Mutated fish and fowl live alongside a disproportionately large number of people suffering from a multitude of cancers. Naturally, the oil companies and local government officials vehemently deny the correlation between oil sand production and environmental and health issues. During a demonstration, one sign summed it up, “Upstream Oil for the States, Downstream Death for Alberta.”

Ironically, this film is causing more controversy than of the environmental kind. The film has vexed Alberta’s government due to the fact the Alberta Film Development Fund subsidized $67,000 of the film. An intense national discourse and debate over future arts funding and freedom of artistic expression has ensued.

For those of you renewable fuel supporters, this is a film not to miss. Check out the trailer here.

A bipartisan group of congress members has introduced a bill that would require that 80 percent of all new automobile and light trucks sold or manufactured in the U.S. be capable of running on either E85, M85 (a methanol-gasoline blend of 85 percent) or biodiesel.

The measure, H.R. 1476, would require half of the new cars and light trucks sold or built here in 2012 to be E85 or M85 flex-fuel capable, ratcheting up to 80 percent three years later. The bill is sponsored by Rep. Eliot Engel [D-NY], Rep. Roscoe Bartlett [R-MD], Rep. Steve Israel [D-NY], and Rep. Bob Inglis [R-SC].

Ford, GM and Chrysler all have said they do not need a mandate. The groups promise to produce half their lines as flexible fuel by the year 2012 should there be fueling infrastructure to support the vehicles. There are currently less than 2,000 E85 fueling locations for more than 7 million E85 vehicles now on American roads.