Biomass Bales Being Delivered to Project Liberty

Last fall farmers in and near Emmetsburg, Iowa were harvesting biomass. Currently, they are in the process of delivering these biomass bales to POET’s 22-acre storage site situated next to Project LIBERTY, the future 25 million gallon per year cellulosic ethanol plant.

Area farmers have harvested nearly 56,000 tons of corn cobs, leaves, husks and some stalk but had to wait to deliver the material while the USDA worked out the details of their Biomass Crop Assistance Program (BCAP). The program provides matching funds of up to $45 per ton to each grower for a maximum of two years. The goal of the program is to help farmers offset the start-up costs for developing the cellulosic feedstock market for biofuels and renewable energy.

“While we shared the farmers’ frustration with delays to BCAP, we are happy to see that the program is being implemented and farmers are now delivering biomass to POET,” Project LIBERTY Director Jim Sturdevant said. “I know they are eager to deliver their bales, just as we are eager to validate our receiving and handling procedures at the new biomass stackyard.

Sturdevant continued, “BCAP is important to helping these first farmers get the new biomass market off the ground. BCAP’s inclusion in the next Farm Bill is an important part of continuing to develop this market.”

So last week, the farmers began completing the application process and shortly thereafter, began to deliver the biomass. Biomass bales this year will be used primarily to test procedures for delivery, receiving, quality assurance, storage, and handling at the stackyard. When operational, Project LIBERTY will use about 300,000 tons of biomass annually to produce ethanol.

POET and Growth Energy Win Regional NAMA Awards

National Agri-Marketing AssociationEthanol industry campaigns targeting the general public and Congress have won top awards from Region II of the National Agri-Marketing Association, which covers the west central part of the country from Montana to Texas.

First place honors for “Television Ad Series” and “Best in Show” from the NAMA Region II went to a national TV advertising campaign for ethanol producer POET. The campaign includes three ads, each representing a different aspect of ethanol production. A farmer, a scientist and a plant manager recite free-verse poetry explaining their role in helping solve the nation’s fuel crisis. The campaign ran on Fox News, MSNBC, CNBC, NBC, CNN and HLN. The ads, which can be seen on POET’s website, were designed by 3 Advertising out of Albuquerque, N.M. POET’s website, which was also designed by 3 Advertising, won first place in the Internet Website category.

In the same region, the national advertising campaign “Facts” by Growth Energy won a First Place award for outdoor creative. The Facts ad campaign launched in April and ran through the fall, with nearly $3 million invested on national TV, on-line, traditional print, and outdoor ads. The outdoor creative segment of the campaign was Growth Energy’s “station domination” at the Washington, DC, Capitol South Metro station – the closest stop to the U.S. Capitol and the offices of the House of Representatives – which included 45 large-scale floor mats, pylon wraps, wall graphics and banners. The campaign also won a Merit Award in the multi-media category, for how the creative was used on national TV, on-line, and in traditional print and broadcast, as well as outdoor. The TV spots can be viewed on Growth Energy’s website.

The submissions now advance to the Best of NAMA National Awards in Kansas City in April.

POET Fuels EcoTrek Tour

Cellulosic ethanol from the nation’s largest ethanol producer is powering a cross country road trip of the non-profit EcoTrek Foundation to showcase renewable fuels and educate the public about environmental issues.

The cellulosic ethanol made from corn cobs and stover will be provided by POET, which has a pilot plant in Scotland, S.D. that has produced cellulosic ethanol for more than two years and tests equipment for commercial use at Project LIBERTY, POET’s planned 25 million-gallon-per-year cellulosic ethanol plant, which will be built in Emmetsburg, Iowa.

The EcoTrek “Best of America Tour” started today at the Santa Monica pier (the start of Historic Route 66) and will travel to cities on the East Coast, including Washington, D.C., and New York with stops in-between at national parks, farms, cities and other venues. Driver and EcoTrek founder Tom Holm will demonstrate how a renewable, American-made fuel can green our nation’s transportation system.

“We’re taking a regular American-made pickup truck, outfitting it with American-made accessories and powering it with American-made biofuels in order to emphasize our ability to be gentler to the environment, while bolstering American’s economy, national security and independence from foreign oil,” Holm said. “My hope is that the use of clean biofuels made here at home will begin to minimize our sacrifices and lead to a more prosperous America admired for the innovations for which Americans are noted.”

Holm will work to spread the message about renewable fuel at every stop on his trip, including visiting farms and refineries that produce cellulosic ethanol in South Dakota and Iowa. The tour concludes March 11 on the pier at Santa Monica.

POET Designs New Ethanol Co-Product Loader

New equipment designed by POET has made loading distillers’ grains (DDGS) safer, faster, easier and ultimately more profitable for the company’s ethanol plants.

It’s called the Load Toad™ and it was designed to allow rail cars to be packed more densely by forcing DDGS to the sides of the rail car, a process that is usually done by hand with a shovel. By distributing the DDGS load more evenly and efficiently, POET plants have been able to pack 3%-5% more DDGS into each car.

“The Load Toad not only allows us to put more DDGS in a railcar, which increases our production efficiency, but this device also allows the commodities team to more safely load a railcar,” said Dave Hudak, general manager at POET Biorefining – Alexandria (Ind.). “We no longer have to shovel any product nor stand on the top of the car to load it. The potential for a back injury has been eliminated.”

Commodities Assistant Ryan Schroeder from POET Biorefining – Leipsic in Ohio developed the first prototype of the Load Toad as a solution to a common loading problem that led to cone-shaped pileups in the rail cars. These pileups dramatically lowered efficiency in each rail car and created a great deal physical work for staff. “It felt good knowing that not just our plant would benefit, but the commodities people at all the POET plants would benefit,” Schroeder said. The Load Toad is currently being used at POET plants, but the company is exploring opportunities to market the technology to other ethanol producers in the future.

Here’s a video of the Load Toad in action from the POET website.

Broin Recives Indiana Paul Dana Award

The Indiana State Department of Agriculture has recognized POET President and CEO Jeff Broin with the 2010 Paul Dana Excellence in Bioenergy Leadership Award. POET is the nation’s largest ethanol production company with 27 plants producing more than 1.7 billion gallons of ethanol a year.

ISDA Director Joseph Kelsay presented the award during the Greater Indiana Clean Cities Awards Ceremony at the Governor’s Residence in Indianapolis. The Paul Dana Award recognizes those who have exemplified leadership and innovative vision in the bioenergy industry. Governor Daniels and Lt. Governor Becky Skillman established the award to honor the memory of Indy Racing League (IRL) driver Paul Dana, a strong supporter of Indiana’s growing biofuels industry who was killed in a racing accident in 2006. Broin is pictured here during last week’s announcement of ethanol’s new involvement in NASCAR.

Other 2010 Greater Indiana Clean Cities Award recipients include Thornton’s Quick Café and Market for outstanding achievement in the implementation and promotion of E85 retail locations; Doug Henderson of Co-Alliance for outstanding achievement in the sale and support of biodiesel blended fuel; and the City of Indianapolis for outstanding achievement in the deployment of hybrid vehicle technology.

During the awards presentation, Kelsay emphasized the importance of biofuels in Indiana. “Indiana is proud of the rapid success we have had in biofuels production. Indiana’s new ethanol and biodiesel plants have created direct jobs for Hoosier workers and many more in other supporting industries,” he said. Kelsay notes that in January 2005, Indiana had only one ethanol plant and currently the state has 11 completed ethanol plants and two more under construction. Indiana had no biodiesel plants in 2005 and there are now five biodiesel plants with a combined capacity of more than 100 million gallons of biodiesel. He also noted that the proliferation of E85 and biodiesel pumps in the state has grown dramatically in the past five years.

Project Liberty Featured on IPTV

As the corn harvest is winding down through the Midwest, Project Liberty is just ramping up on its collection of light corn stover and corn cobs. This fall is the first major cellulosic feedstock harvest for the biorefinery that is expected to be in full production sometime in the first half of 2012. Recently, Project Liberty was highlighted during “Market to Market” on Iowa Public Television.

Once Project Liberty is successfully up and running, POET hopes to produce 3.5 billion gallons of cellulosic ethanol by 2022. As specified in the Renewable Fuels Standard (RFS2), the country needs to use 36 billion gallons of biofuels by 2022 with a minimum of 16 billion gallons coming from advanced biofuels and/or cellulosic ethanol. While the cellulosic numbers have not been met this year and are not expected to be met in 2011, things should rapidly change as cellulosic producers, such as POET, ramp up to commercial scale production levels.

Mike Roth, POET’s Director of Biomass stated in the piece, “It’s a brand new industry within ethanol, which is relatively new, being about 20 years old. We still call ethanol a very immature industry. There is still a lot to learn and a lot of efficiencies to be gained. And this is adding a whole new component to it that really changes the game.”

Ultimately the technology developed by POET is designed to be “bolted-on” to current corn-ethanol facilities, eliminating the need to build new biorefineries to meet the country’s biofuels demands.

You can follow Project Liberty’s progress here.

DF Cast: EPA Seeks Input on E15 Ethanol Pump Labels

The U.S. Environmental Protection Agency has given the green light to E15 ethanol … or maybe a “pale” green light, in the case where it is a partial waiver to allow up to 15 percent ethanol in gasoline for 2007 model year vehicles or newer.

In this edition of the Domestic Fuel Cast, we hear from EPA Assistant Administrator for Air and Radiation Gina McCarthy, who says the agency needs input on what the E15 pump labels should look like. We also hear from Renewable Fuels Association President Bob Dinneen, who is pleased with seeing the rise in the percentage of ethanol allowed in gasoline but is concerned that it is unnecessarily limited to 2007 model year vehicles and newer. He also worries that a “warning” label about E15 at the pumps could confuse consumers and scare them away from using the green fuel. Tom Buis, CEO of Growth Energy and ethanol producer POET’s president Jeff Broin believe the comment process will weed out any problems, and consumers, and in turn, retailers will end up embracing E15.

More information, including how you can give your input on the label is available at the EPA’s E15 website.

It’s an important conversation, and you can hear more of it in the Domestic Fuel Cast here. Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.:

USDA Announces Biofuels Initiatives

As part of the Obama Administration’s effort to promote production of fuel from renewable sources, create jobs and mitigate the effects of climate change, Secretary Tom Vilsack today announced a series of measures during a speech to the National Press Club in Washington.

“Domestic production of renewable energy, including biofuels, is a national imperative and that’s why USDA is working to assist in developing a biofuels industry in every corner of the nation,” said Vilsack. “By producing more biofuels in America, we will create jobs, combat global warming, replace our dependence on foreign oil and build a stronger foundation for the 21st century economy.”

The Secretary announced several measures, including the publication of a final rule to implement the Biomass Crop Assistance Program (BCAP). Under the BCAP final rule, USDA will resume making payments to eligible producers. The program had operated as a pilot, pending publication of the final rule. Authorized in the Food, Conservation, and Energy Act of 2008, BCAP is designed to ensure that a sufficiently large base of new, non-food, non-feed biomass crops is established in anticipation of future demand for renewable energy consumption.

The nation’s largest ethanol producer, POET, welcomed finalization of rules for the Biomass Crop Assistance Program (BCAP), saying it will help launch the biomass market near the site of their planned cellulosic ethanol plant. “The 85 farmers we have contracted with to deliver 56,000 tons of biomass this fall are nearly finished harvesting, so the final BCAP rule comes not a day too soon,” said Jim Sturdevant, Director of Project LIBERTY for POET. “We will now apply for our cellulosic ethanol plant to become an approved Biomass Conversion Facility (BCF) so that local farmers can become eligible for matching payments for the biomass they will soon deliver.”

POET is in the midst of the world’s largest commercial harvest of biomass for cellulosic ethanol. Farmers around Emmetsburg, Iowa are baling corn cobs and light stover for delivery to POET. In order to store the bales, POET recently completed construction of a multi-million dollar stack yard next to where the first commercial cellulosic ethanol plant will be built.

Read more about Vilsack’s announcement here.

EPA Must Move Quickly to Approve E15 in Older Cars

The ethanol industry all agrees that today’s decision by the EPA to grant an E15 Waiver for 2007 or newer model cars and light duty trucks is a step in the right direction. However, most groups feel that the decision didn’t go far enough in moving the US to its renewable fuels goals of 36 billion gallons for biofuels by 2022.

Shortly following the EPA press conference, Agricultural Secretary Tom Vilsack released a statement commending the EPA for its decision. “Today’s announcement from EPA is an important step toward making America more energy independent and creating much-needed jobs in rural America. The announcement will help get existing ethanol capacity into the market.”

Vilsack continued, “Today’s action by Administrator Jackson and the EPA provides assurance to farmers, ranchers and the renewable fuels industry that the government backs the use of home grown energy in our cars and trucks. At the same time, more work is needed and we hope EPA and the Department of Energy complete an evaluation of 2001-2006 models soon.”

However, not all groups agreed with Vilsack’s enthusiasm. POET CEO Jeff Broin, whose company spearheaded the E15 Waiver, reacted by saying, “Approval of E15 in 2007 and newer vehicles is a positive first step toward opening the market for more ethanol to compete with gasoline. However, the EPA must move quickly to take the next step: approval of E15 for use in older vehicles.”

Broin continued, “The arguments being made right now against E15 are the same as those made about E10 back in the late 1980s, when I entered the ethanol industry. Seventy billion gallons later, we have proven those arguments false, just as research on E15 is proving critics wrong today. Greater market access will help give investors the needed confidence to commit to bringing cellulosic ethanol to commercial scale. Many projects, POET’s Project LIBERTY among them, are ready for commercialization but hindered by unnecessary limits on ethanol content in fuel.”

Ethanol enzyme company Genencor, a Division of Danisco echoed others’ sentiments. “We applaud the action taken today by the EPA and hope that they will quickly move to approve E15 for all vehicles. The adoption of sound, tested policies for cleaner fuels is critical to reducing our dependence on foreign oil, supporting our agricultural sector and cutting greenhouse gas emissions,” said Glenn Nedwin, Executive Vice President of Genencor.

The Relationship Between Biomass Harvesting and Soil

As the cellulosic industry gets closer to bringing cellulosic ethanol to market, there have been some concerns regarding how biomass harvesting will affect soil health and yields. These very issues were discussed by Dr. Stuart Birrell a professor at Iowa State University, whom with his team, have been studying soil sustainability as it relates to biomass harvesting.

His latest research has been in partnership with POET’s Biomass division, who is now in the midst of the largest biomass harvesting of light corn stover and corn cobs in the world. Birrell notes that to determine how much biomass a farmer can remove from his field without having adverse effects, it is important to the farmer to understand the health of his soil.

Birrell said during Project Liberty’s BIomass Harvest Kickoff, that there is a lot of variability in fields. In some fields, a farmer won’t be able to remove much, if any biomass whereas in other fields, he may remove more. On average, POET is asking for 1 ton from each field, which averages out to around 20-25 percent of the total biomass. However this could change in the future as bushels per acre increases. In fact, seed companies are predicting that within the next 15 years, corn harvests will double and this feat will be achieved without putting any additional land into production.

Birrell also noted that biomass harvesting may encourage some farmers to move to no-till techniques, which help reduce the amount of carbon released from the soil.

So ultimately, how will a farmer know how much biomass he can remove from his field? With some new technology that Birrell’s team is working on – variable rate removal machines. As a farmer is harvesting his biomass, the machine will automatically adjust how much biomass is removed based on certain soil health characteristics. This will ensure that soil health is not jeopardize by removing too much biomass.

Largest Global Cellulosic Biomass Harvest Underway

The largest global cellulosic biomass harvest in history is underway and already the world is watching. Last week, Project Liberty kicked off their one-year biomass harvest pilot program as an effort to ensure all the correct logistics are in place in time for Project Liberty to go online in early 2012.

During the event, I caught up with Scott Weishaar, who runs POET’s biomass division. He and his team have been working for years on commercializing cellulsoic ethanol using light corn stover and corn cobs and this pilot program represents that last major hurdle for success.

As part of this program, POET Biomass will have a biomass storage building completed in time for harvest that will house up to 23,000 tons of biomass bales at any given time.

Along with progress comes concerns and Weishaar is very cognizant that people have concerns over what impact the removal of biomass will be on the soil. “We know there are concerns. So we want to make sure we understand all the aspects that are associated with that – soil erosion, nutrients, compaction, and storage characteristics,” said Weishaar.

All of these elements are being studied in conjunction with several partners including Idaho National Laboratory, Iowa State University and USDA’s Biomass Program and the goal is to have all major questions answered prior to the cellulosic ethanol plant going online.

“We are working around the logistics surrounding the collection, storage, and handling of the biomass so we’re ready to supply the feedstock in 2012,” said Weishaar.

As the world watches, there are still many who doubt commercial cellulosic ethanol will ever succeed. To that, Weishaar says the “proof is in the pudding” and they are ready to meet the country’s challenges of producing 36 billion gallons of biofuels by 2022 and reducing its dependence on foreign oil.”

Listen to the interview with Scott Weishaar here: Scott Weishaar Talks Biomass

Iowa Gov Chet Culver Celebrates 1st Biomass Harvest

“The future belongs to those who believe in the beauty of dreams. And this has been a dream for many, many years,” began Iowa Governor Chet Culver during his presentation to kick off the largest global biomass harvesting pilot project in Emmetsburg, Iowa.

Project Liberty, the dream of Jeff Broin, CEO of POET and his company, is less than two years away from becoming the first commercial scale cellulosic ethanol plant using corn stover and corn cobs. This fall, nearly 85 local farmers will be harvesting and storing nearly 60,000 tons of biomass in an effort to refine the harvesting, storage and logistics for converting biomass into ethanol.

Culver noted that many people didn’t believe that this project could happen, but he has been a supporter since he took office in 2007. Now, he is proud to show the world that no where else is this type of project happening so quickly.

“I would like to thank farmers for embracing this opportunity for our country and embracing this opportunity for our state,” said Culver.

Broin added that to date, area farmers have already received $100,000 in incentive payments to establish the new harvest system on their farm. Part of the goal of this pilot project is to ensure that farmers who harvest biomass are able to do so at a profit as well as in a sustainable way. The optimal biomass harvest of any acre of land will vary between 0-25 percent depending on soil health.

I was on hand today along with several hundred local farmers and members of the community as POET unveiled the details of their biomass harvest program. Part of this program will be the completion of a new biomass storage facility in time for the harvest. The 22-acre site will have the capacity to house 23,000 tons of biomass bales at any given time.

Broin concluded, “As biomass harvesting for cellulosic ethanol grows, America’s reliance on foreign oil will wane and be replaced by a new reliance, this time on rural communities with our own borders. The American farmer will provide food, feed and fuel for the country at an unheard of rate.”

You can see pictures from the event today by clicking here.

Oodles and Oodles of Biomass, Oh My!

There are several barriers to the success of converting biomass to biofuels including harvesting, transportation and storage. But of these three challenges, one of utmost importance is not only how to store the biomass but how long can it be stored without compromising the feedstock?

The most advanced commercial scale corn stover to ethanol project in the U.S. is Project Liberty, a biomass project funding by POET. Ultimately, the plant will produce 25 million gallons per year of cellulosic ethanol, but how much biomass will that take? According to POET, the plant will need 770 dry tons of biomass (corn cobs, some leaves and husks) for each day of operation. Yet how do you store that much material?

This is the very question that the Project Liberty team is working on with researchers at Idaho National Laboratory (INL). They are studying factors at POET plants in Hurley, SD and Emmestburg, IA, like the heat and moisture content of the biomass bale to determine how different types of piles and configurations will affect the quality of the bale. The answer to this question will aid farmers in storing the biomass in their fields until it is needed at the plant.

INL currently has 800 different bale configurations under study and they are attempting to discover the best balance of heat and moisture in the biomass bale. Kevin Kenney, and INL researcher, notes that they are looking at two areas in their research. First, the risk of biomass storage to farmers. Second, how the biomass degrades over time. After this year’s study is complete, the research team will discard the least effective methods and move forward with refining those configurations that hold the most promise.

You can lean more about the project in this video featuring INL researcher, Kevin Kenney.

Ag Secretary Visits Ohio Ethanol Plant

U.S. Secretary of Agriculture Tom Vilsack and Ohio Gov. Ted Strickland toured the POET Biorefining plant in Marion, Ohio today and talked ethanol with industry stakeholders.

Vilsack and Strickland took part in a roundtable discussion with representatives from POET, the Ohio Corn Growers Association, Ohio Ethanol Producers Association and the Ohio Department of Agriculture as well as the federal Farm Service Agency and Natural Resources Conservation Service.

During the visit, Vilsack voiced support for increasing the ethanol blend level to 15 percent. “We are working at USDA to develop a roadmap for how to build that [ethanol] nationwide industry,” he said. “We understand it starts with allowing the capacity we have today to maximize its input. That means increasing the blend rate to 15 percent. I have been advocating for that, will continue to advocate for that, and I believe it will happen. Obviously I wish it had had happened now, but I believe it will happen sometime this fall.” Vilsack also stressed the need for increasing blender pumps and getting more flex fuel vehicles on the road.

Yesterday, Vilsack toured Quasar Energy Group in Wooster, Ohio to observe new technologies being utilized to generate larger supplies of biogas derived from cellulosic biomass. USDA, along with the State of Ohio, provided funding to support the development of the new facility.

The funding was used to install an anaerobic digester that processes 25,000 wet tons per year of organic biomass including food wastes from local food producers, crop residuals, grass and manure from livestock operations of the Ohio State University-Agricultural Technical Institute (ATI). Based on its electric generation capacity, this bio-digester can supply roughly one-third of the electricity needs of the Ohio Agricultural Research & Development Center (OARDC) campus.

DOE Finds Ethanol Pipeline Feasible

A pipeline for ethanol from the Midwest to the East Coast is a viable project, if certain conditions are met, according to a report by the Department of Energy (DOE).

In the report titled “Dedicated Ethanol Pipeline Feasibility Study,” which was required under the Energy Independence and Security Act of 2007, DOE concludes that “in spite of the documented challenges and risks, a profitable, dedicated ethanol pipeline is feasible under certain scenarios. A pipeline would enhance the fuels delivery infrastructure, reduce congestion of rail, truck, and barge transportation, and would reduce greenhouse gas emissions when compared to current delivery methods. The faster product delivery cycles, more reliable delivery schedules, and increased safety will enhance the flexibility to accommodate any significant expansions in ethanol production and demand in the future.”

One of the challenges is that the pipeline, at a projected cost of $4.25 billion, would need to transport 4.1 billion gallons of ethanol each year over its 40-year lifespan to be economically feasible without “major financial incentives.” That volume exceeds projected demand in the target East Coast service area by 1.3 billion gallons.

Senator Tom Harkin (D-IA) and Congressman Leonard Boswell (D-IA) suggest that the pipeline could be developed with federal support in the form of a loan guarantee. “By providing federal loan guarantees for biofuels’ pipelines, we can attract private investment in large infrastructure development projects, create good-paying jobs and further move our nation towards energy independence and security, and all with minimal taxpayer investment,” Harkin says. Boswell, who authored the Renewable Fuel Pipeline Act of 2010, says the pipeline would have significant benefits. “In addition to reducing greenhouse gases emitted during truck and rail transport of biofuels, it would also reduce the overall cost of these renewable fuels to consumers outside of the Midwest,” he said.

Ethanol producer POET and Magellan Midstream Partners, which have formed a partnership to look into building such an ethanol pipeline, were pleased with the government report. “While our project differs from the hypothetical project considered within DOE’s study, we believe the DOE’s conclusions are directionally correct: a large scale pipeline project is feasible under certain conditions and that a federal loan guarantee is necessary to move forward,” reads a joint press release from the companies. “In addition, the DOE confirms that transporting energy via pipelines has multiple benefits such as reducing congested highway and rail systems while reducing green house gas emissions when compared to other modes of transportation.”

The POET/Magellan project is based on a smaller capital cost of $3.55 billion and similar demand.