Domestic Fuel

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

New findings by the Solar Electric Power Association (SEPA) have found that solar power is the fastest growing source of energy for the utility sector in 2011. Solar power capacity grew by 120 percent from 2010 as utility companies contract for more solar power. In 2011, utilities installed more than 62,000 PV systems of various sizes that equates to nearly 1,500 megawatts of electricity per year. If the pace of solar power adoption continues, 2012 should be another record breaking year.

“In addition to the photovoltaic systems added by customers and third-party producers, much of the growth has come from the direct actions of utilities,” says Julia Hamm, SEPA President and CEO. The findings show that 39 percent of new solar capacity came from utilities owning or contracting for solar power. Large solar projects, greater than 10 megawatts each, represent the bulk of this capacity.

The two regions of the greatest growth were the Southwest and the east. The Top 10 utilities, according to SEPA’s annual Utility Solar Rankings survey, added more than 1,000 megawatts of solar power in 2011. Overall, 240 utilities added solar capacity in 2011 for a total of 1,500 megawatts. The installed capacity represented a mix of large utilities, rural co-ops and consumer installed systems. This is equivalent to six new natural gas power plants.

“This is a marked shift from a few years ago, when customer-owned, net-metered systems dominated installed solar generation,” said Hamm. “Today, utilities are taking a greater role in the expansion of solar power in the United States.”

Pacific Gas & Electric held the top spot for the 4th straight year. Public Service Electric & Gas Co. based in New Jersey was also in the top 10 along with Southwestern Public Service based in New Mexico. The full report will be available in May 2012.

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

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

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

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

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

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

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

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

OriginOil has announced that a breakthrough chemical-free process developed for algae harvesting may also aid in the clean up of dirty water that is a byproduct of oil well water flooding and hydraulic fracturing. According to the company, using a lab prototype of the technology, its researchers have successfully clarified samples of flowback water from a Texas oil well carrying frac flowback. In essence, the technology separates the organics from the water, which then float to the surface and from there can be easily removed.

Hydro fracturing is becoming more popular with petroleum companies and in states like North Dakota operations using this technology are gearing up. Large amounts of water are used to release the oil and gas, lodged deep in rock formations, oil that until this technology was developed, couldn’t be harvested. The market grew 63 percent, from $19 billion in 2010 to $31 billion in 2011 and is expected to rise another 19 percent in 2012 according to Platts.

“Our research team has learned that extracting petroleum and contaminants from water is very much like extracting algae,” said Riggs Eckelberry, OriginOil CEO. “They are both very hard to remove without using chemicals and heavy machinery. Our innovative chemical-free, high flow and low-energy process holds promise for the billions of gallons of water used daily in the oil and gas industry worldwide.”

Oil production uses a lot of water and the U.S. Department of Energy estimates that for every barrel of oil produced globally, an average of three barrels of contaminated water is produced. In worse case scenarios, the water to oil ration can be as alarming as 50 to 1. As a result, the market for cleaning the water is growing, and Greentech Media reports it costs between $3 to $12 to dispose of each barrel of water. Therefore, the market for water cleaning technologies could be between $300 billion to $1 trillion per year.

Eckelberry added, “It seems that in addition to helping create the renewable energy market of the future, we may add value to a massive existing energy market. We will continue to investigate and report on this promising new application of our technology.”

According to EU environment ministers, the carbon price must be urgently boosted to fix the EU’s Emissions Trading System (ETS) and fight climate change. This message was delivered today during in an informal discussion in Horsens, Denmark. The focus of the meeting was whether or not to raise the carbon price in the ETS.

In a statement by the European Wind Energy Association (EWEA) who held its annual international wind conference earlier this week, the carbon market is overflowing with spare emission allowances due to the economic crisis.  The result has been the lowering of carbon prices.  EWEA says the most effective way to push the price back up is by avoiding too many allowances coming into the market in the next few years.

“The EU ministers need to ensure no more emissions allowances are put on the market,” said Rémi Gruet, Senior Regulatory Affairs Advisor for EWEA. “This must be included in the Energy Efficiency Directive, currently being negotiated between the Council of Ministers and the European Parliament, where decisions can be taken by a majority of Member States. This directive is the only upcoming legislative opportunity to push such a measure.”

EWEA says the European Parliament supports such as move and voted by a large margin in favor of withholding carbon allowances in the ETS and voiced it’s decision in the low carbon roadmap 2050 that was released this past February. In addition, there is major support from energy companies and the wind energy industry for such a move to take place.

A Political Action Committee (PAC) has been formed by the Renewable Fuels Association (RFA). Referred to as the Renewable Fuels PAC, it will be used by RFA members to support federal office candidates that are believed to be pro-biofuels and support domestically produced renewable energy, such as ethanol. RFA submitted its statement of organization on April 5, 2012 to the Federal Election Commission.

“Domestic renewable fuels offer America a real opportunity to put an end to our addiction to imported oil while creating jobs and putting American ingenuity to work creating fuel technologies for the future,” said RFA President and CEO Bob Dinneen.

“In order to ensure the full potential of American renewable fuels is realized, consistent and forward-looking public policy is essential. The Renewable Fuels PAC will allow RFA members to contribute to candidates for federal office that share our view that ethanol and all renewable fuels are an essential element in our nation’s energy, economic, and environmental strategy,” concluded Dinneen.

Matt Hartwig will serve as the Renewable Fuels PAC Treasurer.

I took a brief break from my 2012 La Nina Reading list to watch a documentary on climate change.  Carbon Nation touts itself as a “climate change solutions movie that doesn’t even care if you believe in climate change.” Yet this movie does care about climate change.  The narrator says, “We thought we had time to figure things out. Trouble is there is no more time. Climate change is happening now.”

The movie features many of the same players and same technologies as other films – Lester Brown, Van Jones (who just released Rebuild the Dream, which I will be reviewing soon), Amory Lovins, and Thomas Friedman.  In terms of technologies, it covers wind, solar, geothermal, biofuels, and it also has sections that discuss land use, deforestation, transportation, and energy efficiency.

The movie was well done, interesting and had great graphics. In addition, I really liked some of the people who were interviewed – real down to earth people who are taking clean technologies into their own hands. The other thing I liked about the movie was the way it broke down how each technology or action will or can affect carbon.

What do I mean?

For example, globally, the world uses 16 terawatts (TWh) of energy each year. Of those, it is estimated that when fully developed, solar could produce 86,000 TWh, geothermal 32 THw, and wind 870 THw. In other words, these three technologies alone could replace all fossil fuel based energy and leave room for growth. This doesn’t even include the amount of energy saved and carbon reduced when you factor in gains from energy efficiency and land use strategies.

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Waste Management has opened another gas-to-energy power plant in northern Nevada at its Lockwood Landfill.  The landfill gas will be captured and converted to electricity – enough to power more than 1,800 homes.  Nevada Governor Brian Sandoval was on hand at the ribbon-cutting ceremony to celebrate the first of its kind of project in the state.

When organic materials break down, they create a gas comprised of nearly 55 percent methane gas (a gas more potent than carbon dioxide in terms of climate change).  The gas is captured via collection wells strategically placed around the landfill and then pipe the gas to the power plant. Once the gas arrives, it is used to fuel two generators.  It is estimated that the electricity produced will offset around 700 railcars of coal.

“The Gas-To-Energy Facility at the Lockwood Landfill ensures that not even garbage will go to waste,” said Justin Caporusso, Waste Management spokesperson. “By investing in landfill gas-to-energy, we are powering homes using the same waste that is left at the curb.”

Waste Management (WM) cites some benefits of the project including the plant is not dependent on other sources of energy like wind or solar; it’s reliable during peak energy hours; it’s an economical alternative to other fuel sources such as natural gas; and it’s endorsed by the Environmental Protection Agency.  In total, WM operates 131 landfill gas-to-energy facilities across North America equating to more than 9 million mW hours of electricity per year.

Paul Pabor, vice president of renewable energy for WM added, “Waste Management has been developing landfill gas-to-energy technology for over two decades, and we operate more of these facilities than any other company in the United States. As a leader in this industry, we understand how landfills operate and how to use technology to extract the most value from the waste stream.”

Our latest ZimmPoll asked the question, “Where are best job opportunities in agribusiness?” Some people have become doubtful of the opportunities in the industry for some reason. They shouldn’t have those doubts though. Here’s what our poll results showed. Most picked Biotech at 28% with Energy coming in second at 21%. They were followed by Agronomy at 17%, Sales/Marketing/Communications at 15%, Dairy at 7% and both Crop Protection and Equipment at 6% each.

Our new ZimmPoll is now live and asks the question, “Would you be willing to donate the proceeds from one acre of your farm to help your local food bank?” Let us know what you think and thanks to everyone who participates in our weekly poll!

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

The second book in my  2012 La Nina Reading List was “Roosters of The Apocalypse,” by Rael Jean Isaac. This book could be a dictionary definition of “opposite” as compared to Climate Wars. Where Climate Wars is on the far right side of hysteria of the evils of climate change, Roosters of The Apocalypse is on the far left side of hysteria that it is a major, orchestrated hoax upon the world that is costing us billions upon billions of dollars.

So what is a rooster anyway? Isaac quotes Richard Landes who describes “those who initiate and build support for these movements as roosters (aka Al Gore) for they crow an exciting new message, and their opponents as owls, gloomsters counseling caution and skepticism (Real Issac).” Issac weaves the message of the Xhosa throughout the book, a parable about an orphan girl’s vision of truth. I can’t tell you her truth because I was unable to follow the thread. Rather than explain it in one section, she drops little nuggets of the story throughout the book and not in a clear, concise way.  I could have looked up the story on Google, but quite frankly, I’m far to lazy to go to the trouble.

Anyway, the key to building momentum is getting “elites” to join the cause. Al Gore, or U.S. Senator Majority Leader Harry Reid would be considered rooster elites.  Once that happens, ordinary people will join in.  Isaac tells the story of how the prophecy of global climate change caught fire and spread around the world in breathtaking speed.  While doing this, she deconstructs all the “deceptive techniques” and fakery” used by organizations such as the Intergovernmental Panel on Climate Change (IPCC). I won’t rehash the scandal involved in their report but the bottom line was accusers claim they fudged the numbers to support climate change.

It is no doubt that those on the “right side of green” will make millions on global climate change.  
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According to a new report from GlobalData, government incentives and fuel demand are helping to boost biofuels markets. “Biofuels (Biodiesel and Bioethanol) Market – Global Production, Regulations, Export-Import Analysis and Key Country Analysis to 2020,” found that countries in Europe, Asia and North America (U.S.) are heavily involved in biofuel production – both ethanol and biodiesel.

Ethanol production globally began in ernst in 2003 and has grown significantly with the help of government subsidies. Canada and China both have blending targets, as well as the U.S. who passed a Renewable Fuels Standard (RFS2) to drive the use of biofuels. In 2003, production numbers were 33,514 million liters and grew to 105,608 million liters by 2011. The Compound Annual Growth Rate (CAGR) was 15.4 percent during this time period and the report expects production to grow another 4.4 percent between 2011-2020.

Biodiesel production picked up speed on a global level in 2005, and has also seen various government subsidies and incentives spurring growth. Key biodiesel exporters in 2010 were Germany, China, the Netherlands, Argentina, Belgium and the U.S. In 2005, global production of biodiesel was 4,854 million liters, and grew to 23,579 million liters by 2011. Biodiesel boasted a CAGR rate of 30.1 percent and is expected to grow an additional 3.5 percent between 2011-2020 for an annual production level of 4,205 million liters.

The report says the the growth demonstrates the importance of government and environmental policy for the current growth of the industry. It also concludes that future production increases will be dependent on similar support from global governments.