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Research and Technology Updates
Update on ‘Fuel vs. Food’ Debate
Critics often speak out against biofuels in terms of the ‘food vs. fuel’ debate. Recently, EESI’s own Jetta Wong, Senior Policy Associate of our Sustainable Biomass and Energy Program, testified before the U.S. Commission on Security and Cooperation in Europe to discuss the complexities involved in the rise in world food prices and how that relates to current biofuel production. Wong pointed out that there are a number of factors that influence the price of food. She noted that “because biofuels development has created a global market and brought a laser beam of attention to the relationship between energy, land use, and climate change, much of the media has jumped to point fingers at biofuels without doing due diligence on the issue.” In a February 2008 report, the UN’s Food and Agriculture Organization (FAO) stressed that “there is no single factor that can be identified as being the main one responsible…Nor is it possible to make a quantitative assessment of the contributions of the factors that have been influential on the increase in the price of food.” A May 2008 report by FAO and the Organization for Economic Cooperation and Development (OECD) indicated that agricultural commodity prices should ease from their recent record peaks but over the next 10 years they are expected to average well above the mean of the past decade due to a number of supply and demand factors such as soaring energy costs, changing consumption patterns, production shortfalls due to weather-related events, speculation in financial markets, diminishing commodity stock levels, export restrictions, and the production of biofuels from agricultural commodities. An April 2008 policy note by the World Bank indicated that around 15 percent of the increase in food production prices is due directly to higher energy and fertilizer costs. In a May 1st press briefing, Ed Lazear, Chairman of the White House Council of Economic Advisors, noted that increased production of ethanol accounts for only 3 percent of the 43 percent global increase and only 0.25 percent of the 4.5 percent increase in U.S. food prices. The United States Congress has been very active on this issue in light of high agricultural and energy prices and the ramifications for the Renewable Fuel Standard (RFS) enacted as part of The Energy Independence and Security Act of 2007. On May 2, Senator Kay Bailey Hutchison (R-TX), Senator John McCain (R-AZ), and 22 other Republican senators sent a letter to U.S. EPA Administrator Stephen Johnson asking that he begin to examine alternatives to the RFS. In response, Senator Chuck Grassley (R-IA), Tim Johnson (D-SD), and 14 other senators submitted a letter to the EPA Administrator voicing strong opposition to any request to partially or completely waive the RFS. Representatives Stephanie Herseth Sandlin (D-SD) and John Shimkus (R-IL) also drafted a letter to the EPA Administrator in support of the RFS. Action on Capitol Hill during the month of May does not end there. A May 14th article in Roll Call highlighted the surfacing of documentation revealing that the Grocery Manufacturers Association (GMA) had launched a public relations campaign to discredit corn-based ethanol. In a prepared floor statement the next day, Senator Chuck Grassley (R-IA) stated that “this anti-ethanol campaign is not a coincidence. It turns out that a $300,000, six-month retainer of a beltway public relations firm is behind the smear campaign, hired by the GMA.” GMA hired Glover Park to run a six-month campaign in an effort to roll back the RFS. Senator Grassley called their efforts a "smear campaign" designed “to undermine and denigrate the patriotic achievement of America’s farmers to reduce our dependence on foreign oil while also providing safe and affordable food.” Amidst these letters, floor statements, and many press conferences, several hearings also have occurred regarding the ‘food vs. fuel’ issue: June 12, 2008 - Senate Committee on Energy and Natural Resources: Relationship between U.S. Renewable Fuels Policy and Food Prices [LINK] May 20, 2008 - Senate Committee on Homeland Security and Governmental Affairs: Financial Speculation in Commodity Markets: Are Institutional Investors and Hedge Funds Contributing to Food and Energy Price Inflation? [LINK] May 15, 2008 - House Committee on Agriculture, Subcommittee on General Farm Commodities and Risk Management:To review the source of dramatic movements in commodity markets (agriculture and energy): a change in market fundamentals or influence of institutional investors? [LINK] May 15, 2008 - House Committee on Small Business: Food Prices and Small Businesses [LINK] May 14, 2008 - Senate Committee on Foreign Relations: Responding to the Global Food Crisis [LINK] May 7, 2008 - Senate Committee on Homeland Security and Governmental Affairs:Fuel Subsidies: Is There an Impact on Food Supply and Prices? [LINK] May 6, 2008 - U.S. Helsinki Commission, Commission on Security and Cooperation in Europe: Clearing the Air, Feeding the Fuel Tank: Understanding the Link between Energy and Environmental Security [LINK] May 6, 2008 - House Committee on Energy and Commerce, Subcommittee on Energy and Air Quality: May 1, 2008 - U.S. Congress Joint Economic Committee: How Are High Food Prices Impacting American Families? [LINK] Other resources: USDA speech on issue, USDA Officials Briefing with Reporters on the Case for Food and Fuel (May 2008) [LINK]
H.R. 5770 H.R. 5819 - SBIR/STTR Reauthorization Act H.Res. 1117 H.R. 5866 - Streamlining America's Various Energy Needs Act H.R. 5867 - Energy Conservation Through Trees Act H.R. 5881 - Environment and Public Health Restoration Act of 2008 S. 2925 - National Energy Efficiency Development Act H.R. 5911 - RIPE Act of 2008 H.R. 5917 - New Bridging Industry and Government Through Hi-Tech Research on Energy Efficiency Act of 2008 S. 2940 - Green Energy Production Act of 2008 S. 2958 - American Energy Production Act of 2008 S. 2970 - Climate Change Drinking Water Adaptation Research Act H.R. 5964 H.R. 5976 - United States Commission on Rebuilding America for the 21st Century Act H.R. 5984 - Clean Energy Tax Stimulus Act of 2008 H.R. 5986 - Diesel Fuel Tax Relief Act of 2008 S. 2995 – Oil Trading Transparency Act H.R. 6001 - Main Street U.S.A. Energy Security Act of 2008 S. 3001 - National Defense Authorization Act for Fiscal Year 2009 H.R. 6049 - Renewable Energy and Job Creation Act of 2008 H.R. 6052 - Saving Energy Through Public Transportation Act of 2008 H.R. 6065 - Green Schools Act H.R. 6067 - Invest in Energy Independence Act H.R. 6078 - GREEN Act of 2008 H.Res. 1206 S. 3031 S. 3036 - Lieberman-Warner Climate Security Act of 2008 S. 3044 - Consumer-First Energy Act of 2008
Renewable Fuel Heating Plant to be Constructed at the National Renewable Energy Laboratory The National Renewable Energy Laboratory is currently in the process of constructing an energy efficient Research Support Facility. A groundbreaking ceremony was held in October for the facility. It will include a renewable fuel heating plant which will use biomass to cut natural gas use by 75 percent. A five-acre photovoltaic array is to be constructed as well to help power the facility. The facility is expected to receive a platinum environmental rating from the U.S. Green Building Council, the highest of its kind. “It is fitting that the Nation’s leading research center on renewable energy and energy efficiency is also a leader in putting these vital technologies to use,” said Department of Energy Secretary Samuel W. Bodman. “These projects truly set a new precedent for how we use energy and I hope they will serve as models for future federal clean energy projects.” Construction on the facility is expected to be completed by the end of 2009 at an expected cost of $72.9 million. The renewable fuel heating plant will receive waste wood from nearby sources and is expected to save the plant approximately $400,000 in natural gas costs in its first year of operation. This project is partially in response to an executive order issued by President Bush in January 2007 calling on the government to improve energy efficiency and cut greenhouse gas emissions by 30 percent by the end of 2015. “At NREL, we are proud that these major new facilities will enhance our capabilities, and provide reliable, renewable energy to power our growing research campus,” NREL Director Dan Arvizu said. “This is more evidence that DOE and NREL will continue to walk the talk when it comes to clean energy technology.” Sources: http://www.nrel.gov/docs/gen/fy08/42649.pdf (.pdf format)
Forest Service Announces $250,000 Grant to Collect Biomass for Nevada Power Plant On April 3, the U.S. Forest Service awarded a $250,000 grant to the Nevada Forest Service to collect biomass for a Northern Nevada Correctional Center wood-fired power plant. Previously, this power plant had run only sporadically due to a lack of funds to supply fuel. These funds will be used to provide equipment to transport biomass provided by wood created from forest thinning projects. The biomass used in this power plant is in the form of limbs and brush that lack the value of traditional lumber. This type of biomass is generally ground or burned on site. “This grant provides a cost-effective way to remove biomass from small-scale forestry operations that are having difficulty disposing of biomass,” said Pete Anderson, Nevada’s State Forester and Firewarden. “It’s essentially a double benefit — biomass can be more effectively moved off site to ultimately help fuel the Northern Nevada Correctional Center’s power plant.” The Nevada Division of Forestry has added $79,500 in funding for forest treatments, driver transportation time, and fuel costs. Sources: http://www.forestry.nv.gov/docs/press_release_040308.pdf (.pdf format)
DOE Selects 3 Small-Scale Biorefinery Projects for up to $86 Million of Federal Funding On April 18, The United States Department of Energy (DOE) announced awards to three small-scale biorefinery projects for up to $86 million over four years (FY ’08-’11). Funds will be used to support the development of three small-scale cellulosic biorefineries in Maine, Tennessee, and Kentucky. These three biorefinery projects will use a variety of feedstocks to test new conversion technologies providing data for commercializing full-scale biorefinery technologies. These three projects are in addition to four additional projects which were announced earlier this year totaling $200 million in DOE funding. These projects are part of a larger effort on the part of DOE for biofuels research which has totaled more than $1 billion since 2007. Source: http://www.doe.gov/news/6164.htm
U.S. Forest Service Releases Woody Biomass Utilization Desk Guide The U.S. Forest Service released a desk guide for the utilization of woody biomass. The guide is part of a strategy to increase the harvest and utilization of woody biomass wherever it is appropriate. The goals of woody biomass program include reducing the cost of forest restoration while creating a renewable energy source and providing economic opportunities to rural communities. At the same time, increasing the utilization of woody biomass can reduce the risk of large wildfires by removing a fuel source. The purpose of this desk reference is to provide a quick reference to those seeking to utilize biomass resources as well as to assess the viability of forest restoration by utilizing marketable biomass. This guide focuses on the design of utilization projects, issues raised by the National Environmental Policy Act, obtaining permits and contracts, as well as sales and cost reduction strategies. Sources: http://www.timberbuysell.com/Community/DisplayAd.asp?id=2535
USDA Announces Expansion of BioPreferred Program On May 14, Agriculture Chief Economist Joseph Glauber announced that 27 new groupings of products would be designated for procurement under the BioPreferred Program. With this announcement, an additional 2,469 biobased products from 562 companies will now qualify for the program. This puts a total of 2,741 products from 659 companies in the BioPreferred Program. “The BioPreferred Program has now reached a critical mass with these new products qualified for preferred procurement,” said Glauber. “I expect a marked increase in Federal purchases of qualifying biobased products by Federal agencies and their contractors. And, even more designations of biobased products are in process.” More information on the final rule can be seen below. Sources: http://www.agnetwork.com/Meats_Content.asp?ContentID=221384
Congress Adopted Food, Conservation, and Energy Act of 2008 On May 15, 2008 the Senate adopted the conference report (Conf. Rpt. 110-627) for the Food, Conservation, and Energy Act of 2008 (H.R. 2419) by a vote of 81 to 15. The House adopted the conference report on a veto proof margin of 318 to106. Final passage of this conference report has been a long time coming. This $289 billion bill (over 5 years) provides funds for commodity, rural development, nutrition (close to 2/3 of the bill), conservation, and energy programs. After much debate and controversy, an additional $10 billion was included, with nutrition receiving the majority of the funds. These programs will be beneficial for rural and urban communities and because of this both chambers of the Congress overwhelmingly passed the bill with strong bi-partisan support. Given the large margins in both the Senate and House, it the Congress was able to override the President after he made good on his promise to veto the bill. The farm bill includes $1 billion in funds for renewable energy programs and new feedstock production for bioenergy. This bill reauthorizes several programs, including the 2002 Farm Bill’s energy title. Programs include grants and loan guarantees for rural communities and farmers to install renewable energy and energy efficiency systems; feedstock diversification and production; and biomass research and development (see chart on below). Several other important energy programs were also included in other titles of the bill. Furthermore, this bill includes energy trade and tax provisions. The long-awaited Cellulosic Biofuel Credit for $1.01 per gallon is available through December 31, 2012 and will help move the country towards diversified feedstocks and more sustainable biofuels. The bill also includes a reduction in the 51 cent Volumetric Ethanol Excise Tax Credit (VEETC) to 45 cents. The bill also extends the secondary ethanol tariff for two years, through 2010. The secondary ethanol tariff of 54 cents is not reduced. Unfortunately, the biodiesel tax credit was not included in the bill. Source: EESI Press Release
Politicians Filibuster US Climate Legislation On June 6, by a vote of 48-36, the Senate failed to invoke cloture (cut off a filibuster) on the Lieberman-Warner Climate Security Act of 2008 (S. 3036). Sixty votes are required to achieve cloture and limit debate--16 Senators were not present to vote. The vote was specifically on cloture for Senator Barbara Boxer’s (D-CA) substitute amendment (S.A. 4825) to the bill. Jeremy Symons, Executive Director of the National Wildlife Federation's Global Warming Program, said, "48 Senators voted to move forward on global warming legislation, with another six Senators who couldn’t be at the vote today going the extra step to enter statements that they would have voted 'yes.' In all, 54 Senators spoke up for the need to advance serious legislation on global warming, far surpassing the 38 votes in 2005 and 43 votes in 2003 for legislation that was significantly weaker than the Lieberman-Warner bill. Supporters today included 10 Senate converts who had not supported cap-and-trade legislation in prior votes (2003 and 2005). Senator by Senator, we are seeing members of Congress respond to science and the public rather than the oil and coal industries. The number of Senators opposing serious global warming legislation plummeted to an all time low of 36 Senators." Sen. Reid did not keep open the option of reconsidering the vote, as he normally does when he intends to try again at a later date. The bill is unlikely to come up again this Congress. Although passage this year was never expected, supporters had hoped to get the Senate on record on key amendments that could help shape a climate change bill in the next Congress. Instead, the Senate failed to take up issues that will be critical to any future legislation, such as the role of nuclear power or whether to pre-empt more stringent action at the state level. The legislation would cap emissions of greenhouse gases from covered sources at 19 percent below current levels by 2020 and 71 percent below current levels in 2050. It would set up a market-based trading program for businesses to meet the cap. Sources: http://www.eesi.org/publications/Newsletters/CCNews/6.6.08%20CCNews.htm State of Ohio Appoints Members to Task Force to Coordinate Agriculture and Polymer Industries The State of Ohio has announced the creation of the Ohio Agriculture to Chemicals, Polymers, and Advanced Materials Task Force, which has the mission of evaluating the current status of Ohio's agriculture and advanced materials industries and expanding opportunities by increasing alignment between the two industries. Thirteen members have been appointed including Chairman Doug O’Brien, who is also the assistant director of the Ohio Department of Agriculture. "Ohio has a unique opportunity to become a world leader in the conversion of agricultural commodities into the bio-based products of the future," said O'Brien. "The state has an abundance of raw materials along with the research and development capacity and corporate infrastructure that make Ohio a natural leader in this emerging industry." This task force is expected to strengthen already existing connections in the polymer industry’s uses of agricultural products. The polymer industry in Ohio includes more than 2,800 facilities and 140,000 workers. It generates $49 billion in annual sales revenue and pays its workers $5.6 billion in wages. Source: http://www.reuters.com/article/pressRelease/idUS114151+27-Mar-2008+PRN20080327
Oklahoma Set to Plant First-Ever 1,000 Acre Switchgrass Field On April 23, the State of Oklahoma announced that it had secured 1,000 acres of land for the cultivation of switchgrass to be used for cellulosic ethanol production. Secured by the Oklahoma Bioenergy Center, this will be the largest field of its kind. "Rising food costs recently resulted in a pushback against renewable fuels. However, cellulosic ethanol from sources like switchgrass and sorghum are non-competitive with food sources for animals and humans and remove cellulosic ethanol from this discussion," said Oklahoma Secretary of Energy David Fleischaker. "More so, this dedicated land will allow us to demonstrate the advantages of switchgrass." Because switchgrass is drought resistant, it can be grown on marginal lands with little need for irrigation or fertilizer which prevents it from competing with resources currently allocated to food crops. In addition, a cellulosic biorefinery is currently being constructed in Hugoton, Kansas which is near the site of the switchgrass field. It is hoped that this field could be used as a “living laboratory” to examine new production methods as well as other information vital for establishing a viable cellulosic ethanol industry. Switchgrass is believed to have the potential to produce an energy output 20 times greater than corn according to preliminary tests conducted by the U.S. Department of Energy. Switchgrass was also highlighted as a potential alternative energy source by President Bush in his 2006 State of the Union address. Sources: http://www.noble.org/Press_Release/2008/08-011.html
Indiana Increases Funding for New E85 Pumping Stations The State of Indiana has recently passed legislation that provides up to $20,000 to companies to assist them in the installation of E85 fuel stations. This program has total funding of $1 million and the new legislation increases the maximum amount of funding per station from $5,000 to $20,000. This funding is expected to cover 50 percent of the cost to install new E85 infrastructure and is not limited to businesses as in the past. Local governments are now eligible for assistance as well. “As we travel around the state, we hear from many people who want E85 pumps in their communities,” said Indiana Agriculture Director Andy Miller. “Now that cities, towns and retailers are eligible to apply for this E85 grant, I encourage them to take advantage of this opportunity.” In addition, consumers will receive an 18-cent sales tax deduction per gallon on E85 purchased at these sites. There are more than 100 E85 pumps in Indiana today in comparison to zero in 2005. A lot of interest has been generated in the technology according to Cary Aubrey, program manager for Bioenergy Development at Indiana State Department of Agriculture, who said, “The phone has been ringing off the hook.” Sources: http://www.ethanolproducer.com/article.jsp?article_id=4030
Colorado Announces Funding for Biomass Gasification and other Projects On May 5, the Colorado Governor’s Energy Office (GEO) announced a $100,000 grant to the Denver Zoo for the construction of a biomass gasification facility to power an upcoming exhibit from the tremendous amounts of waste produced at the zoo. Approximately 1,500 tons of waste per year are generated from Elephants alone. "Every day that we operate, we are bringing in material and filling up this dumpster and every couple of days it's hauled off for composting," said George Pond, vice president of planning and capital projects. "We are going to use gasification to create energy using elephant waste and actually our entire waste stream.” Current plans are to process 90 percent of the waste and trash created through its gasification system. This is part of a larger amount of funding from the state of Colorado totaling $656,000. In addition to the Denver Zoo grant, the Black Hawk Transportation Authority received $50,000 for a biodiesel processing facility that will convert cooking oil waste into biodiesel to produce fuel for local bus services. Also, Mountain Parks Electric, Inc.of Granby, received $25,000 to integrate a wood pellet heating system at their headquarters and Community Energy Systemsof Crestone received $24,170 for biomass thermal heating systems for a veteran’s home. “These projects were selected for their ability to help Coloradans reduce their energy use and carbon footprint. Also, they will help to stimulate additional economic and job development in communities throughout the state and advance Colorado to a New Energy Economy,” said Tom Plant, GEO’s director. Sources: http://cbs4denver.com/pets/zoo.gasification.denver.2.717956.html
Minnesota Increases Biodiesel Mandate from 2 percent to 20 percent by 2015 The State of Minnesota has recently passed legislation mandating an increase in the biodiesel content of diesel fuel sold from 2 percent to 20 percent by 2015. This increase was enacted not only to support the biodiesel industry, but also tp benefit the economy of Minnesota. According to the legislation, the current 2 percent biodiesel mandate will increase to 5 percent on May 1, 2009; to 10 percent on May 1, 2012; and to 20 percent on May 1, 2015. "Implementation of the legislation starting in May of 2009 is timely and workable," said Chuck Neece, Chairman of the Minnesota Biodiesel Council. "The supply from the current biodiesel production capacity in Minnesota already exceeds 64 million gallons, more than enough to meet the five percent requirement, which would be 40 million gallons." The increased mandate can only go into effect if Minnesota is producing at least 50 percent of the biodiesel from feedstocks produced in the United States and Canada. The legislation also requires that five percent of the mandate must be supplied from alternative feedstocks in an effort to move away from biodiesel produced from food crops such as soy. In addition, this new legislation imposes a ban on biodiesel produced from palm oil, which is the first ban of its kind in the United States. This ban was put in place to assure that the increased use of biodiesel does not contribute to deforestation associated with palm oil production in many parts of the world. "This legislation establishes a plan to constantly look to the future for new technologies and the processing of agricultural-based fuels," said Ed Hegland, Chairman of the National Biodiesel Board and a Minnesota farmer. "I'm proud to live in Minnesota, a state that leads in energy innovations like biodiesel." Sources: http://nbb.grassroots.com/08Releases/MNB20/ Research and Technology Updates New Study Advances Method to Make Energy from Farm Waste Researchers at Washington University in St. Louis are working to develop new methods to make energy from farm wastes. Using imaging technology, researchers including Washington University Professor Dr. Muthanna Al-Dahhan found that vigorous mixing of microorganisms and manure can help facilitate the natural digestion process to produce energy. The major end product of digestion is methane, which can be used directly for energy, converted to methanol, or, when partially oxidized, to synthesized gas, a mix of hydrogen and carbon monoxide. Synthesized gas can be converted to clean alternative fuels and chemicals. Al-Dahhan said, “Each year livestock operations produce 1.8 billions tons of cattle manure. If it sits in fields, the methane from the manure is released into the atmosphere, or it can cause ground water contamination, dust or ammonia leaching, not to mention bad odors. Treating manure (with microorganisms) gets rid of the environmental threats and produces bioenergy at the same time.” The goal of this research is to make a reliable “digester” that farmers could use to produce methane from farm wastes. This research was funded primarily by a roughly $2.1 million grant from the U.S. Department of Energy. Sources: http://climate.weather.com/articles/farmenergy041708.html
Researchers Make Strides in Creating Gasoline from Plant Matter In the April 7 issue of Chemistry & Sustainability, Energy & Materials (ChemSusChem), Dr. George Huber of the University of Massachusetts Amherst announced the first direct conversion of plant cellulose into gasoline components. In a new process, Huber and other UMass Amherst researchers rapidly heated cellulose in the presence of solid catalysts, materials that speed up reactions without sacrificing themselves in the process. They then rapidly cooled the products to create a liquid that contains many of the compounds found in gasoline. In principle, this process does not require any external energy, which may allow for extra heat produced in the process to be used to generate electricity in addition to the biofuels produced. In a statement Huber said, “Biofuels in the future will most likely be similar in chemical composition to gasoline and diesel fuel used today. The challenge for chemical engineers is to efficiently produce liquid fuels from biomass while fitting into the existing infrastructure today." John Regalbuto, who directs the Catalysis and Biocatalysis Program at the National Science Foundation said, “Green gasoline is an attractive alternative to bioethanol since it can be used in existing engines and does not incur the 30 percent gas mileage penalty of ethanol-based flex fuel.” In addition to Dr. Huber’s work, Dr. James Dumesic and others from the University of Wisconsin-Madison have announced a process for creating components of jet fuel using a green gasoline approach. The hope is to be able to produce fuels from cellulose sources such as switchgrass and poplar trees or even agricultural wastes such as wood chips in an effort to move away from corn ethanol and soy biodiesel. Sources: http://www.timberbuysell.com/Community/DisplayNews.asp?id=2431
New Study Details Nutritional Value of Biodiesel Byproducts for Cattle Dr. Greg Lardy of North Dakota State University has completed a study analyzing the nutritional value of oilseed meals from biodiesel byproducts as feedstuffs for the nutritional strategy of cattle in the northern Great Plains. “Oilseed meals can be used as a feedstuff in a wide variety of beef cattle nutrition applications,” Lardy said. “They are best suited for use as protein supplements in wintering diets for beef cows or in growing and finishing diets for beef calves.” In response, Montana rancher Jeanne Charter, representing the Western Organization of Resource Councils and the Northern Plains Resource Council, said, “We see potential for the ranching industry in cooperation with area growers to become more energy self-sufficient while adding value to our beef before shipping it out of state.” Using this information, small scale biodiesel producers could provide a valuable nutritional supplement to cattle in the fall and winter when grasses have a lower nutritional value. Sources: http://www.zimbio.com/Biodiesel/articles/121/Small+scale+biodiesel+fuel+truck+feed+cows
Researchers Develop Microbe Capable of Producing Cellulose In a study recently published in the journal Cellulose, Professor R. Malcolm Brown Jr. and Dr. David Nobles Jr. at the University of Texas at Austin have developed a new microbe capable of producing cellulose which can then be utilized for ethanol and other biofuels. Brown and Nobles say that the bacteria they have produced can be grown on non-agricultural lands without fertilizer using salt water that cannot be used for human consumption or crops. Unlike the cellulose produced by plants, this new cyanobacterium produces a form that can be easily broken down into glucose. In addition, cellulose and other sugars can be harvested without destroying the bacteria, unlike current crops which require the plants to be destroyed. "The huge expense in making cellulosic ethanol and biofuels is in using enzymes and mechanical methods to break cellulose down," says Nobles. "Using the cyanobacteria escapes these expensive processes." According to Brown, a major benefit in using cyanobacteria to produce ethanol is a reduction in the amount of arable land turned over to fuel production, which also decreases pressure on forests and other native systems. "The pressure is on all these corn farmers to produce corn for non-food sources," says Brown, the Johnson & Johnson Centennial Chair in Plant Cell Biology. "That same demand, for sucrose, is now being put on Brazil to open up more of the Amazon rainforest to produce more sugarcane for our growing energy needs. We don't want to do that. You'll never get the forests back." Currently Nobles and Brown are working on methods to scale up the production of the bacteria and make the process more efficient. Source: http://www.sciencedaily.com/releases/2008/04/080423115917.htm
Study Finds Fungus May Be Used for Biofuel Production In a study published in Nature Biotechnology, researchers have sequenced the genome for Trichoderma reesei, a fungus which may provide a method for breaking down plant fibers to produce sugars necessary for biofuels production. "Our analysis, coupled with the genome sequence data, provides a road map for constructing enhanced T. reesei strains for industrial applications such as biofuel production," Diego Martinez of Los Alamos National and colleagues wrote. This fungus species has already been utilized by industry; however this study concludes that fewer genes are used for cellulose digesting enzymes than previously thought. It is hoped that enzymes produced by bacteria or fungi such as T. reesei could provide an efficient method for converting feedstocks such as switchgrass into cellulosic ethanol. “The sequencing of the Trichoderma reesei genome is a major step towards using renewable feedstocks for the production of fuels and chemicals,” said Joel Cherry, director of research activities in second-generation biofuels for Novozymes, one of the collaborating institutions on the study. It is also the organism of choice for producing enzymes for the breakdown of cellulosic biomass to fermentable sugars, which can then be biologically converted to fuels and chemical building blocks.” Sources: http://www.reuters.com/article/CHMMFG/idUSN0554856920080505?sp=true
Study Released Evaluating the Viability of Removing Biomass from Fuelbreak Areas On March 20, a report was submitted to the USDA Forest Service analyzing the economic viability of removing biomass from areas in fuelbreak treatments that take place to prevent forest fires. Currently, understory brush and small trees are removed from a high risk area and typically burned on site. On-site burning can raise issues of air quality and the risk of the fire burning out of control. Mechanical removal of this material has not been implemented primarily due to issues of access and collection and transportation costs. This report attempted to quantify the costs of removing this biomass in an area in northern California. The report concluded that the cost of collecting this biomass is $230 per acre in comparison to burning costs of $150-$850 per acre which the authors concluded was comparable. The study concluded that the trucking system should only be used for short distance hauling to keep down transportation costs. Source: http://smallwoodnews.com/Docs/PDF/Utilization/FinalRollOffReport.pdf (.pdf format)
Study Released Linking Increased Fungal Toxins to Animal Feed Derived from Ethanol Production Waste In a study to be released in the Journal of Agricultural and Food Chemistry, a review was done of the potential impacts of fungal toxins in livestock feed from ethanol distillery waste. Corn feed naturally contains fungal toxins, but the feed derived from ethanol production waste can contain three times the normal amount. Due to health threats from the fungal toxins famers can expect reduced livestock growth. This study estimates that the current cost to U.S. hog producers from just one of the five major toxins is about $9 million per year. However, if the other four major toxins are included along with other livestock, the annual economic loss could rise to “hundreds of millions, or even billions of dollars,” according to Felicia Wu of the University of Pittsburgh and Gary P. Munkvold of Iowa State University who authored the study. If greater attention is paid to fungal toxin levels in the feed provided by ethanol facilities, they may lose the ability to sell their wastes and might have to pay higher prices for corn with fewer toxins. At the same time livestock producers may have to pay more for corn feed or waste feed with less fungal toxins. It is suggested that the fungal toxin level of feed may need to be tested to verify its safety. The authors contend that if livestock loss associated with distillery wastes leads to lawsuits, it may result may be new regulations that hurt the ethanol industry. This study comes on the heels of a Kansas State University study which found elevated levels of E. coli in feed derived from distillery wastes. Sources: http://sciencenews.org/view/generic/id/31799/title/
Tests Show that Soy-Based Insulation is Comparable to Fiberglass Insulation In tests conducted by Oak Ridge National Laboratory’s Buildings Technology Center, the effectiveness of a soy-based insulation was compared to that of traditional fiberglass insulation. To conduct the evaluation, two structures of comparable design were each insulated with either fiberglass insulation or the soy-based insulation and then evaluated using an index of air changes per hour (ACH). ACH is a measurement on how well the structure prevents outside air from getting inside. The results of the test showed that the soy-based insulation had an ACH measurement of 0.08 while the fiberglass insulation had a value of 0.16 suggesting that the soy-based material acted as a better insulator. "In those homes, the rate of natural air changes ranges from 0.04 to 0.08 ACH, which is very good," said Jeff Christian, director of Oak Ridge National Laboratory’s Buildings Technology Center. The soy-based insulation tested was developed and manufactured by BioBased Insulation. In addition, BioBased Insulation was selected to participate in the U.S. Department of Agriculture’s BioPreferred Showcase in April. “BioBased Insulation is committed to encouraging sustainability in the nation’s building practices,” said Mike Muccio, COO of BioBased Insulation. “This was a great opportunity to showcase our sustainable products to the nation’s top federal construction management organizations.” Sources: http://www.acppubs.com/article/CA6560838.html?industryid=48591 $100,000 to be Invested in Corn Cob Research The Minnesota Corn Research and Promotion Council and the Agriculture Utilization and Research Institute of Minnesota have announced an investment of $50,000 each to determine the viability of corn cobs as a biomass energy feedstock. This effort is being led by the Chippewa Valley Ethanol Company (CVEC) which is currently installing a new biomass gasification system capable of using biomass to replace natural gas for energy input. The plant currently uses woody biomass but could be converted to use corn cobs collected at the end of a harvest season. “Corn cob biomass has superior material handling properties and much lower ash content than corn stover, making it a better thermal energy source for ethanol plants,” said Bill Lee, general manager of CVEC. Lee said the corn cobs could potentially become the primary source of fuel at the plant. “The cobs collected from the same acres that supply corn to the ethanol plant can provide about 75 percent of the plant’s gas energy needs,” Source: http://ethanolproducer.com/article.jsp?article_id=3933
National Biodiesel Foundation Unveils BioTrucker Fuel Card On March 26, the National Biodiesel Foundation announced the BioTrucker Fuel Card, the first ever biodiesel fuel card. This card would allow truckers or fleets to pay cash price on all fuel and no fuel transaction fee for biodiesel at participating truck stops. Several Sapp Bros. Travel Centers as well as others have already offered a $0.02 discount for BioTrucker Fuel Card Holders. "Being one of the first truck stops to offer a discount for BioTrucker Fuel Card holders is very exciting to us," said Kevin Cassidy, Marketing Manager, Sapp Bros. Travel Centers. "We are huge supporters of biodiesel and this program will generate interest and awareness." The Biotrucker Fuel Card gives trucking companies an easy way to pay for fuel as well as discounts on repairs, tires, and roadside assistance. It is expected that the initial network of 149 truck stops will grow as more truck stops sell biodiesel. Source: http://sev.prnewswire.com/oil-energy/20080326/CLW07226032008-1.html
BlueFire Ethanol, Inc. to Break Ground on a Cellulosic Ethanol Biorefinery in Southern California BlueFire Ethanol Fuels, Inc. has announced a partnership with Roeslein Associates, Inc. and Process Automation Concepts, Ltd. to begin prefabricating modules for an ethanol biorefinery to be located in Lancaster, CA. On April 14, an agreement was reached with Brinderson Engineers and Constructors as its engineering, procurement, and construction contractor for this refinery. “We’re excited about the ability to take the materials that we as a society value the least and convert them into a value-added product,” said CEO Arnie Klann. This biorefinery will use cellulosic wastes from landfills in southern California to produce an expected 3.1 million gallons of cellulosic ethanol annually. This biorefinery will be the first to utilize BlueFire Ethanol’s Concentrated Acid Hydrolysis process of producing ethanol on a commercial scale. On May 8, it was announced that BlueFire would break ground on the facility in the next few months after obtaining the final building permits. This facility will be located adjacent to a landfill which will separate out green waste, thereby lowering costs needed to harvest waste materials. Operations are planned to begin next year with ethanol being produced for sale sometime in June. The plant’s capacity is expected to double within a few years. This will be BlueFire Ethanol’s first commercial scale cellulosic ethanol plant. Previously BlueFire has constructed three small pilot plants in California and Japan. BlueFire Ethanol is one of six ethanol companies awarded funding from the U.S. Department of Energy to construct ethanol production facilities. Sources: http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080409005281&newsLang=en
Brazil Opens Ethanol Production, Sugarcane Farming to Indian Firms Brazil has opened sugarcane farming and ethanol production in the country to Indian companies for export back to India. "They can buy ethanol manufacturing companies, invest in cane farming and begin producing ethanol," said Miguel Jorge, Brazilian minister of state for industry and foreign trade. Currently India used five percent ethanol in gasoline in comparison to Brazil which uses 25 percent. The Indian government is planning to double the ethanol quantity to ten percent by October. Fuel retailers such as Indian Oil, Hindustan Petroleum, and Bharat Petroleum are currently in negotiations with various companies in Brazil for sugarcane farming and ethanol production. This is part of increased trade between India and Brazil which has grown 57 percent in the first two months of 2008. Source: http://www.domain-b.com/economy/trade/20080326_production.html
IATP Releases Paper on the Sustainability of the Biofuels Market The Institute for Agriculture and Trade Policy (IATP) along with the International Institute for Environment and Development (IIED), have released a paper detailing the long term sustainability of the biofuel market. According to the paper, sustainability of the biofuel market will depend on governments setting trade rules to support environmental sustainability along with economic development. The energy intensive and large scale production process currently needed by the available biofuel feedstocks are impacting water and soil quality as well as ecological diversity. According to the paper, investment from foreign firms is aggravating land disputes and affecting food security. The paper contends that too often governments use World Trade Organization rules to protect domestic interests from economic impacts to the detriment of the environment. According to the paper, the largest effect on trade from the United States has been on a reduced availability of feed grains for export. "International guidelines could complement what will ultimately be local and national decisions," said Sophia Murphy, IATP Senior Advisor and author of the paper. "Such guidelines could carve out space for policies that are dictated by human rights and environmental norms, and could help to reshape trade and investment obligations to be more supportive of sustainable development." Sources: http://www.organicconsumers.org/articles/article_11533.cfm
DOE Survey Finds that Small Scale Biodiesel Producers Have “Significant Failure Rates”
In a survey completed by the U.S. Department of Energy in 2007 on the ability of biodiesel produced in the United States to meet specifications, it was found that small and medium producers have “significant failure rates.” Samples were requested from all 107 producers of biodiesel; 56 producers supplied samples comprising over 70 percent of the biodiesel currently being produced. Samples were tested for properties deemed critical for engine operation such as oxidation stability, flash point and alcohol content, cloud point, water and sediment, acid value, and free and total glycerin. They also were analyzed for the following elements: phosphorus, sodium, potassium, magnesium, and calcium. These elements are problematic for advanced emission control equipment. Results of the survey determined that large producers consistently met specifications while small scale producers had significant deficiencies mostly relating to oxidation stability. Although deficiencies were found in the smaller producers, only 10 percent of the biodiesel in the United States failed to meet the stated specifications. Sources: http://www.todaystrucking.com/news.cfm?intDocID=19383
Shell Announces Deal with U.S. Company to Develop Biogasoline On March 26, Shell and Wisconsin-based company Virent Energy Systems announced a plan to develop biogasoline. With this five-year collaboration, Shell hopes to use Virent’s “BioForming” technology to produce gasoline from plant sugars instead of ethanol in hopes of increasing fuel efficiency. "The technical properties of today's biofuels pose some challenges to widespread adoption," said Graeme Sweeney, Shell executive vice president. "Fuel distribution infrastructure and vehicle engines are being modified to cope but new fuels on the horizon, such as Virent's, with characteristics similar or even superior to gasoline and diesel, are very exciting." It is believed that biogasoline can be blended at up to 50 percent volume with standard gasoline and not require significant changes to current fuel infrastructure, unlike ethanol. Although initial production will rely on traditional biofuel crops such as corn and sugarcane, Shell says that sugars can be extracted from non-food sources as well. Sweeney says that because biogasoline has the potential to rely on local waste feedstocks, it has the capability to be “cost competitive” with other alternative fuels. This collaboration is in addition to Shell’s current work with Iogen Energy and Codexis in producing biofuels. Sources: “Shell, US' Virent unveil plan for ethanol alternative” Platts.com 27 March 2008.
Asian Workers Forced to Work in Servitude On March 24, Newsweek released an article detailing the conditions of certain workers in Asia. Slave-like conditions were found for workers in a variety of fields including plantations for harvesting palm oil for the production of biofuels. Foreign workers are often brought into a country under the guise that they would be offered a well-paying job. However, promises are often unfulfilled and workers are forced to stay, due to long contracts required by local law, debt to labor brokers, or intimidation. Passports are taken by employers and workers who choose to run away may be classified as illegal aliens and imprisoned, as in the case of Malaysia, one of the countries cited. Due to the realities of a global economy, it is nearly impossible to determine which products are in fact produced by forced labor. The international community has taken only small steps so far to remediate the problem, but countries like Malaysia are beginning to respond. Source: http://www.newsweek.com/id/123481/page/1
Leftover Watermelons from Harvests may be used to Produce Biofuels Bob Morrissey of the National Watermelon Association has announced that watermelons left over from harvests could be used to produce ethanol. Morrissey has estimated that up to 25 percent of the crop is left in the field. The U.S. Department of Agriculture has estimated that 800 million pounds of watermelons were left in fields in 2006. Many of the melons are left in the field because they are not economically feasible to collect, or because they are not visually appealing enough for sale. There is not much data available on how much ethanol could be produced from watermelons, and studies would need to be completed to determine how these leftover watermelons can be used. However, the University of Georgia has demonstrated that ethanol can be made from watermelons but it has not been shown to be cost-effective. The hope is to find new techniques for utilizing other materials of the watermelon besides sugars for ethanol production. “If you can figure out a way to extract those value-added products and put them into the economic mix,” said Morrissey, “we’d take what’s left, which is most of the fruit, and send that to the ethanol plant, and all of that would present an economic stimulus to the farmers,” Morrissey also said that even if watermelons provide only a small amount of the biofuels produced in the United States, a new market could be created for products that are currently left in the field. Sources: http://www.ffva.com/publications/harvester/sep06_ETH.asp
New Report Identifies Gains in Ethanol Production Efficiency In a report released by the Argonne National Laboratory to the Renewable Fuels Association on March 27, American ethanol facilities are using less energy and water for producing ethanol than five years ago. Ethanol industry data from 2001-2006 shows an increase in production of 247 percent. However, at the same time water consumption is down over 25 percent in dry mills, electricity use is down more than 15 percent in dry mills, and total energy use is down over 20 percent in wet mills. “The dramatic improvements in dry mill ethanol production demonstrate this industry’s commitment to developing and utilizing the most efficient technologies available,” said Renewable Fuels Association President Bob Dinneen. “In the past five years, America’s ethanol industry has shown its ability to increasingly meet the fuel needs of the nation while addressing the climate change concerns of the planet.” This analysis was completed using data from surveys conducted by the Renewable Fuels Association. The analysis noted two main trends leading to the rise in energy efficiency: 25 percent of ethanol producers are sequestering carbon dioxide emission for dry ice production and carbonated beverages and 37 percent of the distillers grain produced for livestock feed is being sold in its wet form which reduces the energy need for drying and transportation. Other reasons for the rise in efficiency include the use of natural gas as an energy source in dry mills instead of coal. Sources: http://www.ethanolrfa.org/objects/documents/1652/2007_analysis_of_the_efficiency_of_the_us_ethanol_industry.pdf (.pdf format)
Oregon Companies Reach Agreement to Produce Wood Pellets On April 17, Roseburg Forest Products and West Oregon Wood Products announced a tentative agreement to market wood fuel pellets. Roseburg plans to begin production in time for the 2008-09 home heating season in Oregon and California. In this partnership, West Oregon Wood Products will be able to provide more efficient service to existing customers while gaining access to new ones. Roseburg intends to have an initial capacity of 22,000 tons per year with potential for further expansion. Source: http://timberbuysell.com/Community/DisplayAd.asp?id=2488
QuestAir Technologies to Provide Biomethane Purifier to Project in California QuestAir Technologies, Inc. has announced that it will supply its biomethane purification system to a biomethane project located in Lindsay, California. Phase 3 Renewables, LLC will integrate QuestAir’s system to upgrade its extraction of biogas generated from the anaerobic digestion of manure at Hilarides Dairy. It is predicted that this system can upgrade up to 250,000 cubic feet of biogas per day. Jonathan Wilkinson, President and CEO of QuestAir Technologies, said, “We are very pleased to be part of this project, the first commercial scale plant in North America to produce renewable biomethane vehicle fuel from agricultural waste.” Phase 3 Renewables expects that this plant could produce $1 million worth of fuel. This project will work in conjunction with the “Biomethane for Vehicle Fuel” project which has received $400,000 in funding from the U.S. Environmental Protection Agency. This project plans to convert three diesel powered milk trucks to biomethane extracted at HIlarides Dairy. California’s dairy industry is the nation’s largest, producing 65 million pounds of manure per year. This project aims to provide an example of how to extract a renewable energy resource from agricultural waste. Sources: "California gets Methane Purifier for 'Biomethane for Vehicle Fuel' Project" NGV Global 24 April 2008
Marathon Oil Invests in Cellulosic Ethanol Producer On May 6, Marathon Oil Corporation announced a $10 million equity investment in Mascoma Corporation, a cellulosic ethanol producer. This investment is part of $61 million in funding raised by Mascoma. The money invested by Marathon will go towards research and development as well as the construction of production facilities. Mascoma is currently working with research partners to utilize microbes and other low-cost processes to develop cellulosic ethanol and other biofuels. Currently all of Mascoma’s processes use non-food renewable sources. Cazalot, Jr., Marathon President and CEO says "Marathon's integrated refining, marketing and transportation infrastructure and extensive engineering capabilities, combined with Mascoma's world class research and development team, provide the kind of synergy that will be necessary to bring next-generation cellulosic ethanol out of the laboratory and into full-scale commercial production." In addition to Marathon Oil, Mascoma has received over $100 million in state and federal grants including a recent $26 million grant from the U.S. Department of Energy. It is Mascoma’s intention to begin ethanol production later this year at a plant in Rome NY using its single step Consolidated Bioprocessing method of producing cellulosic ethanol. Marathon Oil has invested in two other ethanol plants and plans to open facilities to blend ethanol with gasoline. Sources: “Mascoma Corporation Raises $61 Million in Third Round of Funding Marathon Oil Leads Round” cnbc.com 6 May 2008
Range Fuels Expands Funding to $166 Million for Cellulosic Ethanol Refinery It has been revealed that ethanol producer Range Fuels has expanded its funding from $100 million to $166 million. It is expected that this funding will go towards the construction of its cellulosic ethanol refinery in Soperton, Georgia, the first commercial-scale cellulosic ethanol refinery in the United States. Construction of this facility began last November and its capacity is expected to be 100 million gallons per year. Range Fuels claims that its thermochemical process for breaking down wood fibers to be converted into ethanol works better on a large scale, but skeptics claim that the company may suffer from being the first company to try such a complex process. To succeed, the ethanol produced by Range Fuels must be cheap enough to compete with other sources. The company plans to use woody biomass from nearby forests in Georgia instead of other possible cellulosic ethanol feedstocks such as switchgrass. Investors supporting this new round of funding include Passport Capital and Morgan Stanley Capital Group.
Renegy Holdings, Inc. Announces the Operation of a Biomass Power Plant On April 28, Renegy Holdings, Inc. announced that it had connected its 24 megawatt biomass power plant to the electric grid and that it should be fully operational this quarter. The facility, located in Snowflake, Arizona, will be Renegy’s first commercial biomass facility.. Fuels for this facility will be supplied by wood-waste from local waste sites, material from surrounding forests, as well as waste recycled fibers from an adjacent recycled newsprint mill. Current fuel supplies include 200,000 tons of waste fuel which is equivalent to a two-year supply. Hugh Smith, chief operating officer of Renegy, stated, "This achievement marks the successful completion of construction at the plant site and demonstrates continued advancement in our start-up activities. Over the next several weeks, we plan to complete a variety of performance tests to demonstrate commercial operability, including gradually ramping up the electrical power output to full load while continuing to fine tune the operations.” Renegy has power-supply agreements with Arizona Public Service and Salt River Project, Arizona’s two largest electric utilities. Source: http://ir.renegy.com/releasedetail.cfm?ReleaseID=306865
Ethanol Refinery to be Constructed in Albany Albany Renewable Energy, LLC, has received approval from the Albany Port District Commission to construct a $350 million ethanol production plant. Depending on the amount of financing obtained, the plant is expected to produce between 55 million and 110 million gallons of ethanol per year. An estimated 60 million bushels of corn would be needed which would come from local producers as well as producers in the Midwest. Developers plan on using a new technology which they say would make production at this plant more efficient than other existing ones. Using a process known as fractionation, developers claim that a plant that would normally produce 55 million gallons of ethanol per year would instead be able to produce 70 million gallons. This process separates the parts of the kernel, creating a highly concentrated material, which increases ethanol yields as well as reduces the amount of natural gas needed by 70 to 80 percent. As corn and natural gas prices have risen, securing financing has been an issue in this project. Increased efficiency should make the project more desirable to potential investors. ICM Inc., the company that would supply the distilling equipment, has a test plant currently in operation in Missouri. By opening a new facility in Albany, ICM could demonstrate this new technology elsewhere. In addition to corn feedstocks, the developers hope to use wood chips or agricultural-grade molasses as well. The projected completion date for this project is expected to be late 2009 - 2010. Sources: http://timesunion.com/AspStories/story.asp?storyID=686992&category=BUSINESS&newsdate=5/8/2008
Indonesia Plans to Tighten Standard for “Green” Palm Oil In response to criticism about the source of its nation’s palm oil production, Indonesia has announced plans to create more strict measures to ensure that palm oil firms meet standards before being labeled as eco-friendly. As palm oil production has increased, the industry has been criticized for destroying rainforests and wildlife to make way for plantations. An industry-led initiative, the Round Table on Sustainable Palm Oil (RSPO) was created to develop a green labeling certification system to help preserve rainforests and wildlife. Companies meeting the standards set by RSPO will be able to market their products as “green” in global markets. “Hopefully, the criteria will be officially approved by the end of May," said Desi Kusumadewi, spokesperson of RSPO for Indonesia. "Basically, Indonesia will use the international standards but it will personalize the criteria based on its own considerations." This announcement comes on the heels of Unilever’s announcement that it will start purchasing palm oil from certified sustainable sources this year with the goal of having all of its palm oil certified by 2015. Unilever is one of Indonesia’s top palm oil buyers and the subject of recent criticism by Greenpeace. "Unilever acknowledges that it has no idea where about 20 percent of its palm oil comes from," states Greenpeace in a new report on palm oil production in Kalimantan, the Indonesian part of Borneo. "Of the remaining 80 percent, it knows the group supplying the palm oil, but not necessarily the concession areas from which it originates." Greenpeace claims that Unilever has failed to use its considerable clout in the palm oil industry to lead the sector towards sustainability. According to Greenpeace, Unilever’s suppliers represent approximately a third of Indonesia’s palm oil production. Palm oil can be used in a variety of products including soaps and cosmetics produced by Unilever. In 2007 Indonesia produced 17 million tons of crude palm oil, of which 11.9 million tons were exported. Sources: http://www.reuters.com/article/environmentNews/idUSJAK15680320080507?sp=true
Senators in Disagreement in “Food vs. Fuel” Debate On May 2, 24 Republican Senators including presidential candidate John McCain (R-AZ) and Kay Bailey Hutchinson (R-TX) sent a letter to Stephen Johnson, Administrator of the Environmental Protection Agency, urging a waiver of the Renewable Fuel Standard, a part of the Energy Independence and Security Act of 2007. The letter expressed concern over rising food prices and the alleged connection between rising prices and increased ethanol production. "American families are feeling the strain of these food-to-fuel mandates in the grocery aisles and are growing concerned about the emerging environmental concerns of growing corn-based ethanol," the letter stated. The letter cited statistics from the U.S. Department of Agriculture stating that 30 to 35 percent of domestically produced corn will be diverted into ethanol production in 2008. In response, 16 Senators, including Charles Grassley (R-IA) and Tim Johnson (D-SD) sent a letter to Administrator Johnson in opposition to any waiver of the Renewable Fuels Standard. Citing Ed Lazear, Chairman of the Council of Economic Advisors, the letter said increased ethanol production has only accounted for a quarter of one percent of the overall 4.5 percent rise in food prices and only 3 percent of the overall 43 percent rise in global food prices. In recent Congressional testimony, Joseph Glauber, Chief Economist at the U.S. Department of Agriculture, stated that rising prices for corn and soybeans have little effect on high prices for other commodities. He stated that other factors including weather problems and a weak dollar have contributed more to higher food prices than biofuel production. Several other university studies were cited as well, all in agreement that waiving part of the Renewable Fuel Standard would have a negligible effect on food prices. The letter concluded, “We strongly urge you to reject any action that would reduce the production and use of domestically produced renewable fuels.” Sources: http://johnson.senate.gov/newsroom/record.cfm?id=297371&
Partnership Announced to Study the Sustainable Development of Biofuels for Aircraft On May 15, it was announced that Honeywell, Airbus, JetBlue Airways, and International Aero Engines would partner to study the sustainable use of biofuels for commercial aircraft. This effort will focus on second generation feedstocks such as algal biodiesel. This effort will focus on producing commercial aviation fuels from second generation feedstocks such as algae. “Biofuels hold tremendous potential to meet growing fuel demand while reducing lifecycle greenhouse gas emissions,” said Jennifer Holmgren, director of the Renewable Energy and Chemicals business for UOP, a Honeywell company. “This partnership brings together a range of aviation and process technology expertise to study and verify the best path toward sustainable use of biofuels in aviation.” UOP has already developed technology to convert natural oils into jet fuel as part of a project funded by the U.S. Defense Advanced Research Projects Agency. Sources: http://www.sustainablebusiness.com/index.cfm/go/news.display/id/16030
DuPont Announces Partnership to Develop Cellulosic Ethanol Technology On May 14, DuPont announced a partnership with Denmark’s Danisco to form DuPont Danisco Cellulosic Ethanol, LLC with the goal of developing and commercializing low-cost technologies for producing cellulosic ethanol. An initial three-year investment of $140 million will target corn stover and sugarcane bagasse as feedstocks, but other forms of raw materials are expected in the future. "By integrating our companies' strengths and expertise in this new venture, we are significantly increasing the potential to make cellulosic ethanol from multiple non-food sources," said DuPont's Chief Executive Charles Holliday. By combining the intellectual property and patents from both companies, it is hoped that the cost of producing cellulosic ethanol could drop through increased efficiency and lower costs. This technology will then be licensed to ethanol producers in the United States and elsewhere. The first pilot plant is expected to be operational by 2009 with a commercial scale plant expected to be operational within the next three years. DuPont Danisco Cellulosic Ethanol expects to enable commercial production of cellulosic ethanol by 2012. Sources: http://www.reuters.com/article/innovationNews/idUSN1447001120080514?sp=true
Merrill Lynch Reports on Impact of Biofuels On June 6, Merrill Lynch released an analysis in their Global Energy Weekly publication titled, “Biofuels Driving Global Oil Supply Growth.” The report stated that biofuels are the single largest contributor to global oil supply growth in light of the inability of non-OPEC crude oil supply to expand. In the United States, corn-based ethanol is adding over 400 barrels per day or 2 percent to domestic supplies which is up from .2 percent at the start of the decade. “Retail gasoline prices would be at least $21 per barrel higher, on average, without the incremental biofuel supplies.” Ethanol production has reduced oil prices by a projected $32 per barrel in the Midwest and $24 per barrel on the east coast. During this time of high oil prices, food prices also have been increasing due to factors such as changing consumption patterns and increased grain demand for biofuel production. On a global scale, 7 percent of the calories contained in aggregate worldwide corn, soybean, rice, wheat, and sugar production was used to make biofuel in 2007. Approximately 25 percent of the U.S. corn crop was used for fuel ethanol production in 2007; it is likely that this share will rise to 35 percent by the end of 2008. Francisco Blanch, commodity strategist, also calculated that increased production of corn ethanol in the U.S. has driven a 21 percent increase in corn prices since 2004. In turn, corn is adding pressure on prices of other food products through crop substitution and spill-over effects. The report concluded that U.S. corn-based ethanol will not be able to fill national demand for transportation fuels. Merrill Lynch predicts that high corn prices, among other factors, will aid in shifting the market to advanced biofuel technologies, such as ethanol and other fuels produced from cellulosic feedstocks. In the meanwhile, Brazilian sugar-based ethanol will likely out-perform corn-based ethanol in production efficiency and profitability. Source: http://cfcr.ml.com/GetDoc.aspx?(.pdf format) Writers: Jetta L. Wong, Jesse Caputo, Justin Mattingly, and Fahran Robb
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