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Research and Technology Updates
Congress Passes Tax Credit for Combined Heat and Power On October 3, Congress passed the Energy Improvement and Tax Act of 2008 (the "bailout bill"), which established a new tax credit for combined heat and power (CHP) systems. The legislation provides a ten percent investment tax credit for the first 15 MW of production. The facility must also produce no less than 20 percent of its useful energy as electricity and 20 percent as useful thermal energy in addition to being 60 percent efficient on a lower heating value basis. To be eligible for this tax credit the facility must be in service before 2017. In addition to the CHP tax credits, the act extended existing renewable energy production tax credits through 2010 for biomass including closed-loop and open-loop biomass. Electricity produced from closed-loop biomass receives full credit while open-loop biomass is eligible to receive half credit. The legislation also includes a personal tax credit (up to $300) for biomass home heating stoves. Source: http://www.epa.gov/chp/documents/chp_itc.pdf (.pdf format)
Minnesota Awards $3 Million in Renewable Energy Grants
On November 6, Minnesota Governor Tim Pawlenty announced recipients of $3 million in grants for renewable energy projects. Eight recipients were awarded including the Central Minnesota Ethanol Cooperative, which received $910,000 to fund a study for the construction of a commercial scale cellulosic ethanol facility. Other grants include funding for woody biomass studies as well as a biomass gasifier unit at the University of Minnesota Morris. These grants were awarded by Minnesota’s NextGen Energy Board, which was created by the Next Generation Energy Act signed into law in 2007. When referring to the grants, Pawlenty stated, “It really represents glimpses into the future of energy policy and energy technology for Minnesota and for our country.” Source: http://www.mndaily.com/2008/11/05/governor-pawlenty-announces-3-million-clean-energy-grants
Minnesota Offering Biodiesel Grants The State of Minnesota Department of Agriculture is offering up to $300,000 in grants to owners and operators of qualifying petroleum distribution facilities. The state is accepting grant proposals from owners of petroleum facilities that distribute petroleum products to sellers, users, or transporters of fuel. To qualify, facilities must be on or proximate to a petroleum terminal, and must have (or be the in the process of building) the infrastructure to blend cold-weather biodiesel into existing conventional diesel fuel. Grants may be used to offset the cost of this infrastructure. Source: http://domesticfuel.com/2008/11/21/minnesota-offers-biodiesel-blending-grants/
Missouri Passes Renewable Portfolio Standard On November 4, Missouri passed Proposition C which will create a renewable portfolio standard for electricity generation. Under the plan the amount of renewable sources of electricity will increase incrementally until reaching the goal of 15% by 2021. Biomass and biofuels are included in this new standard along with wind, solar, and hydropower. Renewable credits from out-of-state sources may be eligible under this standard; however, utility companies cannot meet the requirements of this standard through the voluntary purchase of renewable energy by customers. The ballot initiative passed with support of two-thirds of the state’s voters. Source: http://www.renewableenergyworld.com/rea/news/story?id=54031
‘Spare the Air’ Rules to Take Effect in Bay Area The nine-county Bay Area Air Quality Management District is instituting a new “spare the air” rule from Saturday, November 1 through February 28 regarding the use of wood burning stoves, heaters, or fireplaces. On high-pollution days, the District will make a “spare the air” announcement, prohibiting regional residents from using any form of wood-burning device, including EPA-certified burners and compressed logs. Seventy inspectors will be out on such days, and will actively locate and either warn (for a first offense) or fine perpetrators, said senior public information office Kristine Roselius. The Bay Area has 1.2 million fireplaces/wood burning fixtures according to the District, and the use of these fixtures releases greenhouse gases, particulates, and toxins such as carbon monoxide and dioxin. “One in seven Bay Area residents has a respiratory illness and they’re happy we’re doing this,” Roselius said. The rules have taken more than a year to develop, and supporters note that other areas, such as Puget Sound in Washington, have had similar rules for over 20 years. “We hope it makes a significant improvement in air quality this year – and in years to come,” Roselius concluded. Source: http://www.timberbuysell.com/Community/DisplayNews.asp?id=3789
Vermont Awards Grant to College for Biomass Energy Green Mountain College, located in Poultney, Vermont, has been awarded a $250,000 grant from the Vermont Clean Energy Development Fund to purchase a steam turbine generator to be used for biomass energy production. The generator which has a total cost of $1.2 million is expected to be up and running by January 2010. “This grant gives us a real boost as far as getting this project started and putting us on the path to carbon neutrality because we’re going to be able to generate most of our heat and 20 percent of our electricity,” said university spokesman Kevin Coburn. It is estimated that the biomass generator will utilize 4,900 tons of wood chips annually and save more than $250,000 in heating costs, which would have otherwise gone towards heating oil. The plant is expected to produce 400,000 kw per year (about 20 percent of the entire college’s energy needs) in addition to all of the college’s heat. This project is part of a larger goal of achieving carbon neutrality by 2011 which was committed to by signing the American College and University Presidents Climate Commitment.
Governor Rell Announces Funds to Boost Connecticut’s Renewable Industries Connecticut Governor Jodi Rell has announced that seven biofuel distribution facilities have been awarded a total of $350,000 in grants from the state through the Distribution Facilities Grant Program. Under the program, companies that develop projects to develop biodiesel distribution equipment and infrastructure are eligible for a $50,000 reimbursement from the state upon the completion of their project. “Support for biodiesel production is not only an economic development issue but also an environmental issue,” Governor Rell said. “By creating more opportunities for renewable energy sources we can assist individual businesses, reduce energy costs, improve air quality and reduce our dependence on foreign sources of oil. Programs such as this are a key component of my agenda to make Connecticut a leader in sustainability.” The program winners included: Megellen Terminal Holdings, LP, Bantam Supply Co., Inc., Baribault Oil Company, Inc., and Total Energy Solutions, LLC. All own or operate biodiesel distribution centers, pipelines, or other infrastructure within the state of Connecticut. Connecticut is taking further steps to put itself at the forefront of clean tech and “green collar” job creation by creating a $9 million investment fund to provide financial support to clean tech and renewable energy companies that do business in the state. The fund, called the Connecticut Clean Tech Fund, will be administered by Connecticut Innovations, the quasi-public technology and innovation authority, and its President, Peter Longo. The fund hopes to build upon and leverage Connecticut’s standing as the fuel cell capital of the world to attract new businesses and technology investment opportunities. “We want to position Connecticut as the preferred location to grow clean-tech jobs. The fund will help Connecticut entrepreneurs to develop cutting-edge solutions to address climate change and other global challenges. Their innovations in renewable energy, energy efficiency, environmental remediation and other vital clean-tech areas will create jobs in clean energy and related areas,” said Governor Rell. Peter Longo, the president of Connecticut Innovations and director of the new fund, said that the fund would primarily target companies in the earliest stages of their development, “companies with a product in the beta stage, who are getting ready to introduce it to the commercial market.” While there was no deadline for applying for funding, Mr. Longo stressed that it was important to move fast, as funding would be doled out in as much as $1 million increments until it was gone. In addition to managing the fund, Connecticut Innovations has been conducting a study on the growth of clean tech jobs in the state, and drivers thereof, in a effort to give lawmakers a clearer picture of the sector when they met for their first session in January of next year.
Sources: http://www.norwalkplus.com/nwk/information/nwsnwk/publish/News_1/Governor-Rell-announces-grants-to-boost-Connecticut-s-biodiesel-industry2829.shtml
Oregon Seeks to Build New Wood Products Industry A $2 million state grant is spurring design and development of new markets and infrastructure to deal with the abundant woody biomass in Baker County, Oregon. Proposals for the use of the money include development of a wood-fired gasification plant, a pellet mill, and firewood development, all proposed by Wallowa Resource’s Nils Christofferson. The total cost for the three projects is estimated at $9 million, while total payment streams to local wood suppliers is estimated at around $1 million per year, including the value of the wood provided as well as a $10/ton tax credit for the renewable energy portion of the project. The cost would be offset by the state grant as well as federal grants funds and low-interest loans for renewable projects from the USDA Rural Development Program and local banks. The proposals focus on developing productive uses for the 79,000-90,000 tons of woody biomass produced in Baker County each year, including private slash, landfill waste, and non-saw log. Ideally, the system would consist of woodland owners thinning their land, selling their slash to the gasification and pellet plant while drying the leftovers for firewood. The wood not sold to mills would be sold to the gasifier, whose heat would not only create municipal heat but also heat to dry the pellets at the pellet mill. “Besides providing a sustainable source of income for woodland owners,” Eileen Gyllenberg, president of the Baker County Small Woodlands Association, said, “the products from those operations would benefit area residents, businesses and government institutions by providing less expensive sources of power or heat than what is available from natural gas or electric utilities.” Local landowners are currently considering whether to support Christofferson’s plan or to sell their wood contracts to two companies, Western Oregon Wood Products and Bear Mountain Wood Products, who are considering investing in a local wood pellet and post-and-pole operation. Source: http://www.timberbuysell.com/Community/DisplayNews.asp?id=3878
New Report Detailing the Climate Change Impact of Corn-Based Ethanol The Illinois Corn Growers Association has released a report concerning the climate change impact and potential energy production from corn-based ethanol. The study detailed the climate change impact of the Illinois River Energy corn-based ethanol plant through a full life-cycle analysis including emissions from agriculture, ethanol production and transport, and ethanol combustion. The analysis was done using the Argonne National Laboratory GREET model and determined that ethanol produced at the Illinois facility has a Global Warming Impact (GWI) that is 21% less than the current GREET value for corn-based ethanol and 40% less than the value for gasoline. According to Steffen Mueller, principal research economist at the University of Illinois - Chicago Energy Resources Center, “This is a sizable reduction from numbers currently being used by public agencies and in the public debate.” It is also expected that future reductions in the climate change impact are possible through increases in efficiency and technological advancements. The Illinois Corn Growers Association has also released a report projecting that corn-based ethanol production could increase significantly due to potential increases in corn yield per acre.
Sources: http://sl.farmonline.com.au/news/nationalrural/agribusiness-and-general/finance/ethanols-environmental-advantage-over-petrol-confirmed-by-us-study/1347304.aspx
New Method Turns Wood into Sugar for Biofuels A group of researchers at the Max Planck Institute for Coal Research in Germany have announced a new method of refining cellulose, the tough fiber that makes up the majority of plant and wood matter, directly into sugar that can be refined into ethanol or other biofuels. The method uses an ionic bath, consisting of organic salts that are liquid at room temperature, to break the long, tough cellulose fibers into shorter, more manageable chains without having to resort to acid baths or high pressure/heat. The broken-down chains are then washed out of the solution (which can be reused as a catalyst) with water, then reacted with a solid acid resin to produce glucose molecules. This process produces easily-refined sugar molecules from cellulosic material much more quickly and without resorting to high pressures, heats, or acid treatments, as is common in traditional ethanol refinement. It potentially opens up a new class of biomass feedstocks (grasses, wood, stover, etc) that were previously difficult to refine, as cellulose is extremely difficult to break down, without competing with global food supplies. “With this method, you can even use wood at the beginning of the process. That is why this approach really can be said to allow wood to be converted directly into sugar,” said Ferdi Schth, the Institute’s head researcher. However, Schth cautions that the process has its problems, namely the cost associated with ionic baths, which are too expensive to be commercially feasible yet. The process comes at a time when soaring energy prices are making fuel from biomass more economically attractive (the equivalent of 1000kwh of electricity costs $44 if produced by wood pellets versus $95-$107 if produced through oil or gas). The Institute hopes to expand upon this research by investigating wood to gas, biomass for cooling, and other areas of the renewable energy frontier. Source: http://www.timberbuysell.com/Community/DisplayNews.asp?id=3698
Fungus Could Be New Source of Renewable Diesel Scientists have discovered a novel fungus, Gliocladeum roseum, in the Patagonian rainforest that produces rich, diesel-like gases as part of its metabolic processes. The fungus lives in the bark of the Ulmo tree. A team led by Professor Gary Strobel of Montana State University discovered the fungus by accident while testing other fungi native to the bark of the Ulmo tree. When a batch of fungi was exposed to a set of virulent anti-biotics, G. roseum not only survived but began to produce its own antibiotics and long chains of hydrocarbons, which form the building blocks of diesel and other fossil fuels. The fungi naturally produces such chains in the wild but, when cultured in the lab, showed the capacity to make hydrocarbon chains that were already extremely similar to those found in the typical batch of diesel fuel without requiring treatment. However, the most impressive and potentially the most important capability of the G. roseum fungus is its capacity to produce this “myco-diesel” from a variety of feedstocks. In particular, Dr. Strobel has high hopes for its capacity to produce myco-diesel directly from cellulose. In current commercial techniques, cellulosic material needs to be treated with enzymes to break down into its component sugars, which can then be fermented into ethanol using various microbes. “When crops are used to make biofuel they have to be processed before they can be turned into useful compounds by microbes,” said Professor Strobel. “G. roseum can make myco-diesel directly from cellulose, the main compound found in plants and paper. This means if the fungus was used to make fuel, a step in the production process could be skipped.” A number of private and university labs have already expressed interest in the material, and a joint MSU/Yale team has begun work breaking down the genome of G. roseum to identify key genes in the production process. “The broader question is, what is responsible for the production of these compounds,” Scott Strobel, Gary Strobel’s son and head of the Yale team, said. “If you can identify that, you can hopefully scale it up so you end up with better efficiency of production.” The hope is that the fungus can be cultivated commercially as a large-scale source of clean biofuel. In addition to its obvious climatic and commercial ramifications, G. roseum challenges the traditional scientific notion of the source of fossil fuels. It has long been assumed that decaying organic matter, heated and compressed for thousands of years, creates hydrocarbon-based fuel such as petroleum and natural gas. However, the ability of G. roseum to immediately synthesize hycrocarbon fuel challenges this “sole source” theory. Gary Strobel speculates, “If fungi like this are producing myco-diesel all over the rainforest, they may have contributed to the formation of fossil fuels.”
Sources: http://www.edie.net/news/news_story.asp?id=15544&channel=0&title=Fungal+diesel+could+be+new+fuel+source
Study Released Detailing Impact of Biofuels on Forests Scientists from seven nations, including the United States, United Kingdom, Netherlands, Germany, Malaysia, and Indonesia released a report December 1, the first day of international climate talks in Poznan, Poland, detailing the potential impact of expanded biofuels production on forests. According to the study, clearing forests for biofuels cultivation is even more detrimental to the environment than burning a purely fossil fuel energy blend, citing habitat destruction, loss of biodiversity, and carbon emissions from deforested land. As forests are extremely effective global carbon sinks, their loss leads to massive one-time releases of greenhouse gases, as well as a loss of future capacity for GHG absorption. According to the study, it would take 75 years for GHG savings from using “green” biofuels to make up for the burning down of forestland to make room for biofuel feedstocks; if the land changed were carbon-rich peatland, it would take 600 years. Planting biofuels on degraded grasslands, by contrast, would lead to a net reduction in emissions within ten years. In Southeast Asia and Latin America, millions of hectares of forestland are cleared each year to make room for increased biofuels cultivation, largely funded by purchasing subsidies and investment tax credits from developed nations seeking to lower their carbon footprint. However, given the above findings, “sourcing biofuel feedstock from crops such as palm oil simply doesn’t make environmental sense,” said Emily Fitzherbert from the University of East Anglia, one of the study’s authors. Additionally, the study found that only one in six forest species could survive on a plantation, leading to a massive loss of biodiversity. The researchers concluded by calling for global standards for the sustainable development of biofuel cultivation, but noted that forest protection and cultivation was a superior policy alternative from a purely carbon-focused standpoint while meeting individual obligations to protect biodiversity. Source: http://www.redorbit.com/news/science/1603502/forest_vs_biofuels/
Report Released on the Environmental Impact of Bioenergy Production in Europe On November 12, the European Environment Agency (EEA) released a report on the potential environmental effects of expanding bioenergy production. According to the report, uncertainties surrounding the environmental policies of governments potentially pose a threat to issues such as biodiversity and water resources. It is stated that the EU could produce 5.4% of its transportation fuel from biofuels by 2030 from resources sourced domestically. The report stresses the need for a global standard on biofuels stating, “It could be argued that basing EU bioenergy on domestic resources is preferable from an environmental point of view.” However, the EEA does not conclude that all imports would be environmentally damaging depending on the crop used and if cellulosic biofuels can be developed. According to the report, 80% of the EU biofuels target could be met with second-generation biofuels. The report goes on to conclude that Europe could reduce its greenhouse gas emissions 9.5% by 2020 through the use of bioenergy.
Sources: http://www.europeanvoice.com/article/2008/11/eu-agency-warns-about-damage-from-biofuels/63073.aspx
Siemens Enters Partnership with USDA Siemens Energy and Automation Inc. and Logical Innovations have entered a Cooperative Research and Development Agreement (CRADA) with the USDA Agricultural Research Service to improve the process of producing biofuel intermediates from cellulosic sources. This partnership will focus on converting biomass to bio-oil using pyrolysis, which can also be used to produce bio-char and other valuable byproducts. According to Rich Chmielewski, Siemens’ chemical and biofuels marketing manager, one of the problems with using biomass is that it is difficult to transport. This process could allow raw biomass to be converted into liquid before being transported. The project is currently in the engineering phase but, according to Chmielewski, will be commissioned in January 2009.
Sources: http://www.controleng.com/article/CA6610521.html?industryid=48516
UF Research Mines Waste for Ethanol Production The University of Florida has placed itself at the center of an aggressive state agenda to create a national epicenter of cellulosic ethanol production. Last month, the university opened a brand new, 2,250 square foot lab space to host a cellulosic ethanol project led by Lonnie Ingram, a researcher who has been in the field with UF for more than 20 years. In the midst of the last oil supply scare, Ingram and a group of researchers approached Florida Crystals Sugar Co. to ask to use their sugarcane waste (bagasse) as a potential alternative feedstock in cheaply producing ethanol. The effort led to Ingram’s first patent of an eventual 19, when he engineered a harmless strain of E. Coli with the gene used by bacteria to break down the cellulose in agave plants in the refining of tequila and similar drinks. Although path-breaking, ethanol produced in this manner would have cost roughly $20/gallon, and as oil worries eased, interest in ethanol disappeared by the mind-90s. Despite this, the patent was leased by a private company that would eventually become biotech firm Verenium and paid Ingram and UF $66,000, their first and only royalty check to date. Despite being confounded by economic and market difficulties, Ingram and his team remain poised to continue their work. The state of Florida has recently allocated $20 million for a pilot-scale cellulosic ethanol plant on Florida Crystals’ land to be run by Verenium using Ingram’s process. However, with a number of competing technologies on the market and an uncertain market for cellulosic ethanol to begin with, no investor has yet turned up to finance a commercial-scale project. “Including the bugs, there are a whole host of processes,” said Mike Hartwig of the Renewable Fuels Association. “It’s going to be a matter of trial and error to determine which ones work.” However, industry analysts stress that, given the wide variety of materials (from switchgrass to woodchips to basgasse) and processes, more than one technology will prove to be a “top” performer. Ingram highlights the need for strong government incentives and involvement in the process, beyond simply financing pilot projects. Policies mandating increased use of ethanol blends in fuels are a good start, but greater financial involvement needs to be seen to really get the market moving, say analysts. Speaking about the financial bailout, Ingram voiced his frustration, saying “That’s enough capital for enough alternative fuels to totally eliminate our need for imported fuels. But if we asked Congress to do that, we’d be laughed out of Washington.”
Scientists Form Global Bioenergy Group The groundwork is being laid for a new global organization devoted to the science, research, and policy of biofuels and bioenergy following a November 15th roundtable in Chicago of prominent scientists, economists, and business leaders in the field. The roundtable, organized by Dutch scientist Luk van der Wielen and Madhu Khanna, a University of Illinois-Urbana agricultural economist, and sponsored by B-Basic (a coalition of European research organizations, including universities and think tanks), EBI, and the Consulate of the Kingdom of the Netherlands, was a follow-up to an earlier meeting in San Francisco, where officials from the DOE and USDA suggested a need for a comprehensive body of experts to address the myriad issues facing development and implementation of advanced bioenergy. The group, tentatively titled the Global Bioenergy Science Platform, included about 30 participants. The idea is to base the group on the Intergovernmental Panel on Climate Change, which provided an authoritative body to assess all existing scientific research on global climate change, and whose opinion is often considered the “last word” on the subject. Should the group follow this template, they would conduct no original research of their own, but would instead serve as a clearinghouse and authoritative source of information and assessment on the subject of bioenergy. “There is a clear need for an authoritative body that can comment on the longer term implications of bioenergy development,” said van der Wielen. However, he stresses that nothing is set yet, adding, “We hope to have something finalized in January.” Source: http://ethanolproducer.com/article.jsp?article_id=5087
University of Oregon Program Encourages Use of Wood for Heating A guide released by Resource Innovations, a research collaboration between Resource Innovations Group and the University of Oregon Institute for Sustainable Development, highlights the ways using woody biomass to heat large buildings can reduce energy costs and promote sustainable, carbon-neutral energy use. The guide, “Wood Heat Solutions: A Community Guide to Biomass Thermal Projects,” highlights two examples of effective biomass usage: Enterprise High School in Wallowa County, OR (subject of the accompanying video “Keeping Energy Dollars Local: Using Wood to Heat the Enterprise School”) and the 55,000 sq. ft. Harney County District Hospital in Burns, OR. Both facilities recently switched over to woody biomass burners. They take waste wood from forest management, fuels reduction, or wood products manufacturing, and convert it into pellets or chips, which are then burned to produce heat. Both have realized substantial cost savings. The Enterprise School replaced its oil-fired heater with a $1.5M woody biomass burner using waste products from a nearby post-and-pole business, and has achieved estimated annual savings of $112,000. The Harney Hospital installed a wood burner last year and has already realized savings of roughly $50,000 over conventional electric/propane heaters. The hospital has the additional benefit of producing roughly 30 gallons of ash every two to three weeks, which are distributed to local farmers and growers as a soil additive. Using wood to heat large facilities is growing increasingly popular as a response to higher fuel costs and greater environmental awareness, particularly at “schools, hospitals, government buildings and other facilities that need a lot of heat on a small budget,” said Marcus Kauffman, program manager. Source: http://www.timberbuysell.com/Community/DisplayNews.asp?id=3686
OSC Foundation is Accepting Applications for Scholarships The Ohio Soybean Council Foundation has announced that it is now accepting applications for its 2009-2010 Ohio Agricultural Science and Bioproducts Research Scholarships for undergraduate and graduate students at Ohio universities. Students must be at least a sophomore, have a 3.0 GPA, and be majoring in agricultural science, agricultural engineering, agricultural communications, agricultural business, biochemistry, bioengineering or a related field, and planning a career focused on the application of technology to agriculture. Four scholarships of up to $3,000 and one up to $5,000 are available to undergraduates who meet the above criteria. Two scholarships of up to $5,000 are available to graduate students who are actively involved in research in bioproducts, biobased materials, bioengineering, biopolymers or a related field, and focused on the development and use of biobased products and materials derived from soybeans. All grants will be awarded through a competitive process; the deadline is January 9. “The list of industrial applications for soybeans continues to grow, and it is important to support the science and technology behind these applications,” said Kirk Merritt, OSC Foundation Director of Outreach and Programs. “This is the second year that we’ve offered these scholarships, and we believe they are an important part of strengthening the future of Ohio’s soybean industry.” Source: http://www.portclintonnewsherald.com/article/20081029/UPDATES01/81029019
Wood-boiler Makers Promise to Meet New, Tougher EPA Standards A group of seven wood-boiler manufacturers, including Alternative Fuel Boilers (Econoburn), Central Boiler, Greenwood Technologies, Hardy Manufacturing, Heat Source, Northwest Manufacturing (WoodMaster) and Silver Woods Metals Inc. (Wood Doctor), have agreed to make outdoor boilers that comply with the EPA’s new, tougher “phase 2” standards for wood burners, with a target of reducing overall emissions by a sharp 90%. In order to meet the phase 2 requirements, wood-boilers must emit no more than .32 pounds of particulate pollution per million Btu’s. Phase 2 follows phase 1, which was implemented last year and called for a 70% reduction in overall emissions per boiler; the new guideline was announced at an EPA open house in Waterbury, VT, that highlighted cleaner units that complied with the guidelines. “Here in New England, while many families and businesses are choosing wood as their winter heating fuel source, the new phase 2 outdoor wood heaters will help people choose a model that is better for air quality than older, unqualified units,” said Robert Varney, regional administrator of EPA’s New England office. Vermont put in place its own, more stringent rule requiring .44 lbs per million Btu’s last year, in response to both Vermonters’ heavy reliance on wood for heat and on the recognized environmental and health problems of outdoor wood heaters, notably respiratory ailments, potential heart conditions, and greenhouse gas emissions. The new, cleaner burners have the added benefit of being more efficient, therefore requiring less fuel, and saving customers money. Additionally, complying with phase 2 allows companies to have their products certified by EPA-sanctioned third-parties, adding to their brand. Analysts note that outdoor wood burners have been selling very well lately, with one company going so far as to predict a 400% jump in sales this year. The EPA estimates that voluntary compliance with the phase 1 and 2 guidelines has resulted in an annual reduction of 1,200 pounds of fine particle emissions since implementation.
Sources: http://www.rutlandherald.com/apps/pbcs.dll/article?AID=/20081029/NEWS03/810290408/1004/NEWS03http://www.burningissues.org/pdfs/gov89-99woodstove.pdf (.pdf format)
Biobased Foam Insulation Enters the Retail Market with SoySealTM Biobased Insulation, the Fayetteville, AR-based industry leader in biobased spray polyurethane, has announced that it will release a soy-based, spray can sealant to the consumer market through Home Depot’s Eco Options program. The foam is a spray-based compound that quickly expands to fill cracks and vents in walls and floors, preventing outside air infiltration which, according to Energy Star, is responsible for between 25-40% of home heating and cooling costs; using sealants and insulation such as SoySealTM is therefore the most cost-effective way to dramatically lower home heating and cooling costs. SoySealTM exceeds the Department of Agriculture’s bio-content standard, and has received the stringent Greenguard rating for Children and School use. It does this by replacing most of the petroleum derivative in most sealants with a compound of 96% pure bio-polyol Agrol, which comes from fast-growing and easily renewed soybeans. The company plans on releasing a similar compound for use on doors and windows in the near future.
Sources: http://sprayfoam.com/npps/story.cfm?nppage=176
Florida’s Tri-Rail Trains to Run on Biodiesel The South Florida Regional Transportation Authority announced October 29 that the Tri-Rail commuter trains, which run 50 trains daily during the week and 16 on the weekend in the Miami region, will switch to 99% biodiesel blend, using either soy or palm oil as available, for all operations beginning immediately. The region is one of the few in the country that can use such a pure blend due to its temperate climate. The ridership on the Tri-Rail system surpassed 50 million on October 29th, making this one of the largest transit projects to run on biodiesel in the world. According to tests done at the Southwest Research Center in San Antonio, TX, the biodiesel trains will burn 7% more fuel than traditional diesel; however, biodiesel costs 30 cents less per gallon, and has added benefits which more than outweigh the extra usage. Biodiesel has a higher flashpoint, but releases approximately 43 percent less carbon monoxide, 56 percent less hydrocarbons, 55 percent less particulates, 60 to 90 percent less air toxins and 78 percent less carbon dioxide than diesel fuel. Biodiesel fuel produces no sulfur emissions, and produces five percent more nitrous oxide than diesel fuel. In addition, it is non-toxic if spilled, biodegradable, safe to transport and store, and can be mixed with regular diesel with no modification to infrastructure. Finally, it can be made out of entirely domestic feedstock, creating jobs and limiting imports. “As Florida encourages companies to invest in renewable and alternative energy technologies, I applaud Tri-Rail for the decision to use biofuels in its fleet. As the clean energy technology sector continues to grow, we are encouraging the development of biofuels using Florida-based feedstocks, which will create jobs here in the Sunshine State and help reduce greenhouse gas emissions,” Florida Governor Charlie Crist said. Source: http://www.nbcchicago.com/news/green/Florida_s_Tri-Rail_Trains_to_Run_On_Biodiesel_Fuel.html
Ethanol Producer VeraSun Files for Bankruptcy Protection On October 31, U.S. ethanol producer VeraSun Energy Corp. filed for Chapter 11 bankruptcy. “Today’s filing allows VeraSun to address its short-term liquidity constraints as we navigate historically challenging market conditions while we focus on restructuring to address the company’s long-term future,” Don Endres CEO said in a statement. Responding to fears of rising corn prices, VeraSun entered derivative contracts due to concerns stemming from flooding in the Midwest earlier this year. VeraSun purchased contracts in July when corn prices were reaching their peak, but prices fell back down when the threat of crop damage receded. This resulted in VeraSun purchasing corn at approximately $7.00 per bushel when market prices averaged $5.78 per bushel. As a result, third quarter losses were reported to be close to $100 million which led to their stock prices dropping 72 percent. ``This does not help improve the perception of the ethanol industry,’’ said Pavel Molchanov, an analyst at Raymond James & Associates in Houston. ``There’s not going to be anything left for shareholders.’’ In addition to missteps on corn purchases, VeraSun spent $1.5 billion in acquisitions, adding eight new distilleries and constructing three new facilities. Production was halted at a facility in Linden, Indiana on October 28 in response. VeraSun is not the only ethanol producer harmed by unpredictable corn price with Gateway Ethanol LLC, Heartland Ethanol LLC, LiquidMaize LLC, Greater Ohio Ethanol, Glacial Lakes Corn Processors, and Abengoa SA also affected.
Sources: http://www.reuters.com/article/marketsnews/idINN3137273720081101?rpc=33
Gevo, ICM Partner to Produce Isobutanol Colorado-based biotech firm Gevo Inc. and Kansas-based biofuels firm ICM Inc. have announced a strategic partnership to advance Gevo’s Integrated Fermentation Technology (GIFT), which retrofits ethanol plants to produce isobutanol and hydrocarbons. The retrofit involves replacing the traditional biocatalyst (yeast) with another microbe that produces a high-purity stream of isobutanol. In addition, some of the separation procedures are changed. The agreement will lead to an isobutanol demonstration plant at ICM’s St. Joseph, MO biofuels research center, in addition to naming Gevo as ICM’s exclusive technology partner for producing butanols, pentanols, and proponals. Source: http://www.ethanolproducer.com/article.jsp?article_id=4963
Range Fuels Announces Appointment of New CEO On November 6, cellulosic ethanol startup Range Fuels announced that David Aldous has been named the new Chief Executive Officer. Aldous was previously Executive Vice President for Strategy and Portfolio for Royal Dutch Shell for 28 years. “I am excited to join this industry-leading cellulosic ethanol company. I am firmly committed to non-food based renewable energy as an answer to the serious energy, environmental and economic challenges we face,” said Aldous. “Range Fuels is well positioned to be the first to market with a commercial-scale cellulosic ethanol plant and I look forward to leading our company forward.” Founding CEO Mitch Mandich will remain with Range Fuels as Director of the Board. Range Fuels has been constructing a 100 million gallon per year cellulosic ethanol facility in Soperton, GA. The first phase of this construction is expected to be completed in late 2009.
Developing Nations Question Potential EU Biofuel Regulations On November 6, eight developing nations sent a letter to the European Union (EU) warning that they would file a complaint with the World Trade Organisation (WTO) over proposed regulations on imported biofuels. The letter was signed by the ambassadors of Argentina, Brazil, Columbia, Malawi, Mozambique, Sierra Leone, Indonesia, and Malaysia. The EU is proposing regulations regarding biofuels production resulting in potential land use changes which have the potential to lead to the clearing of rainforests and drying wetlands. These nations contend that such regulations would prevent them from expanding production into wild areas, which, the letter contends, are nearly all suitable land. The letter also warns of regulations regarding biodiversity protection stating they could become an “open-ended list.” While the WTO could not overturn any legislation, they could call on the EU to relax some regulations in the interest of world trade. The EU has not yet finished its biofuel regulations, and in response the European Commission stated that it was too early to comment.
Sources: http://africa.reuters.com/top/news/usnJOE4A50IY.html
Amyris Opens Renewable Diesel Pilot Plant On November 12, Amyris Biotechnologies, Inc. announced the opening of its first pilot plant to produce a form of renewable diesel fuel from sugar cane. To produce fuel, Amyris uses genetically modified yeast to directly produce a product similar to diesel fuel from sugars. Although the fuel cannot be used on its own in existing diesel vehicles, it can be used in blends of up to 50 percent – compared to maximum blends of 10-20 percent with traditional biodiesel fuel. In addition, the fuel produced contains little sulfur or nitrogen oxides and is expected to be compatible with current fuel distribution infrastructure. Amyris is backed by $120 million in venture capital funding (including the Bill & Melinda Gates Foundation) and expects to bring its fuel to market in 2010. In addition to the opening of this pilot plant, Amyris also plans to open a larger pilot plant in Campinas, Brazil in the spring of 2009 to produce fuel from sugar cane grown in Brazil. Earlier this year Amyris announced a partnership with Brazilian ethanol producer Crystalsev to form Amyris-Crystalsev Biofuels. In response to concerns of rainforest destruction from expanding sugar cane production, Amyris Chief Executive Officer John Melo said that production goals should be reached without converting any forest into farmland.
Sources: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11/11/BUBT142M0L.DTL
Bio-Based Motor Oil to be Available for Sale On November 12, Green Energy Technologies announced that their bio-based motor oil G-Oil will now be available for bulk purchase. This motor oil is produced from animal fats and was first introduced into the market in early November. G-Oil has also been tested by the American Petroleum Institute and received the highest rating for gasoline engine oil certification making it the first bio-based motor oil to pass such tests. Currently, only 42% of motor oils pass API’s engine tests which are designed for petroleum-based motor oils. “We could not be more excited by G-OIL passing the API SM engine test and are confident we will soon be awarded the API certification. G-OIL will change the way the world thinks about motor oil,” said Jeff Marshall, president and CEO of Green Earth Technologies. “Passing the SM test proves that G-OIL gives you the best of both worlds – from an environmental and performance perspective.”
Sources: http://www.marketwatch.com/news/story/Green-Earth-Technologies-G-OILTM/story.aspx?guid=%7B922C3D3A-FE38-4D87-956E-B045FC00A167%7D
Ethanol CEOs Announce New Group to Promote Renewable Fuels The CEOs of four of the biggest ethanol producers in America – Jeff Broin of Sioux Falls-based Poet Inc., Wayne Hoovestol of Green Plains Renewable Energy, Bruce Rastetter of Hawkeye Energy, and Dave Vander Griend of ICM – have come together to announce the creation of a new advocacy group, Growth Energy, to support greater use of renewable fuels and defend against the accusations that biofuels production has contributed to high world food prices and starvation. The announcement of the group was coupled with an ad campaign in Politico and the New York Times, as well as the launch of a website, www.growthenergy.org, to put forth their agenda. “We believe ethanol is America’s best renewable fuel, reliable and affordable right now,” said Hoovestol. “American ethanol is high-tech, homegrown and on the verge of innovative breakthroughs that will make it even cleaner and greener for the long-term.”
Sources: http://www.argusleader.com/article/20081111/UPDATES/81111060/1001/NEWS
Valero to Work with Solix on Algae-Derived Biofuels San Antonio–based Valero Energy has furnished an undisclosed amount of the $10 million Series A funding for Fort Collins- based Solix Biofuels. Solix is a three year old, early-stage biofuels company focused on the creation of algal biofuels at a cost-effective commercial scale. Solix claims that algae cultivation consumes substantial amounts of carbon dioxide, potentially reducing the amount of greenhouse gas emissions from transportation, agriculture, and energy production. Specifically, the Solix system can capture emissions directly from power plants and factories. Also participating in the first round of funding were: London-based I2BF Venture Capital (which focuses on biofuel and took the lead in the round), Bohemian Investments of Fort Collins, Southern Ute Alternative Energy LLC, (which manages energy assets for the Southern Ute tribe), and Infield Capital (a Boulder-based investment fund). Source: http://www.bizjournals.com/sanantonio/stories/2008/11/10/daily15.html
BioSolar, Inc. to Begin Pre-Production of Bio-Based Solar Cell Materials BioSolar, Inc. has announced that it plans to begin pre-production runs of its bio-based backsheets for the production of photovoltaic solar cells in preparation for commercial production. BioSolar’s BioBacksheet is produced from cotton and castor beans, as opposed to traditional backsheets which are petroleum-based. Attempts have been made in the past to produce bio-based solar backsheets but these attempts failed due to the molecular structure and low melting point, but according to Beacon Equity Research analyst Victor Sula, BioSolar has overcome these issues to produce material comparable to petroleum-based products. Source: http://www.renewableenergyworld.com/rea/news/story?id=54065
Company Introduces Dual-Auger Grain Cart for Cellulosic Ethanol Production As ethanol production companies decide that cellulose is the future of the business and begin to gear up for production using cellulosic feedstocks and processes, the rest of the agro-energy sector begins to follow suit. This includes field servicing products. Unverferth Manufacturing Company’s new grain cart, the Brent Avalanche 1194CCM, is designed to serve this developing market. The cart is intended to allow for simultaneous harvesting of both corn cobs and stover directly in the field, without needing to be manually sorted. The cart uses a 20’’ drive train mated to a 22’’ vertical auger to provide maximum speed and power when sorting and unloading, as well as providing a pivoting unloading auger. It is hoped that the cart will provide a superior platform as well as cut production costs and time in the field-to-refinery stages of ethanol production. Source: http://www.agriculture.com/ag/story.jhtml?storyid=/templatedata/ag/story/data/1226594666017.xml
Endowment Announces Selection of Forest Investment Zones The US Endowment for Forestry and Communities announced on November 17 the selection of three areas as Forest Investment Zones, with the stated goals of advancing healthy forests and the communities that are dependent upon them. The three areas are: a stretch of Appalachian communities organized and managed by the Mountain Association for Community Economic Development in Berea, Kentucky; a 30-million acre swath of forest in New England and New York managed by the Northern Forest Center in Concord, NH; and a stretch of publicly-owned forest from Oregon to Northern CA managed by Sustainable Northwest of Portland, OR. The winners were chosen from among 60 proposals from around the country; each winner will receive $2 million over five years that will be combined with other funds to design and test the viability and implementability of various strategies to yield healthier forests as well as increased wealth creation and economic opportunity amongst the local communities. “One third of the U.S. is forested. Those forests are an important national asset, whether owned by the public and managed by federal, state or local land management agencies or Tribal entities, or whether held privately,” said Endowment President Carlton Owen. “The pressures facing forests and forest-reliant communities are immense and growing, yet we believe that it is not only possible but vitally important that we find ways to ensure that forests continue to produce marketable products, clean water, wildlife habitat and other ecological services,” he said. “We landed on the concept of forest investment zones, real places where we can work together with local and regional organizations as well as citizens in innovating and learning that could serve as living laboratories to benefit all forest types and communities across the nation,” said Endowment Chairman Dick Molpus. Source: http://www.timberbuysell.com/Community/DisplayNews.asp?id=3835
Coskata Lining Up “Sugary” Deal Warrenville, IL-based ethanol startup Coskata Inc has announced that it has reached an agreement with US Sugar Corp. to “explore” a plant in Clewiston, FL, that would produce up to 100 million gallons of ethanol a year from leftover sugarcane material. The two companies have been looking at a $400 million cellulosic ethanol plant for two months. The announcement comes after the state of Florida announced that it would buy 181,000 acres of cropland from US Sugar for $1.34B as part of an Everglades restoration plan. US Sugar will retain ownership of its sugar mill, refinery, railways, and other infrastructure in the state, and will be allowed to continue sugarcane harvesting and processing for another nine crop cycles. With this in mind, Governor Charlie Crist has said a cellulosic ethanol plant in the region could help offset the expected loss of 1,800 jobs due to the sugar company’s eventual departure. US Sugar said Monday that they were asking the Florida Energy Office for a financial match for the early funding of the cellulosic plant, and would seek a portion of the US Department of Agriculture’s loan guarantee funds for non-food based biofuels. Coskata was formed with an initial $10M of funding from a number of venture capital firms, including Khosla Ventures, Advanced Technology Ventures, and GreatPoint Ventures. This was followed by a further $25M and $50M in two additional rounds of funding. The group remained quiet until January, when they announced that they had sealed a partnership with GM, intending to manufacture cellulosic ethanol for less than $1/gallon. In addition to the proposed US Sugar/Coskata plant, the company announced in April that they intended to build a $25M, 40M gallon/year pilot plant in Madison, PA. This places Coskata on the short but growing list of pilot cellulosic ethanol producers, which includes Irvine, CA-based BlueFire, Sioux Falls, SD-based Poet, and Broomfield, CO-based Range Fuels, all of which are in either the planning or production phase for pilot cellulosic ethanol plants. Source: http://www.greentechmedia.com/articles/coskata-lining-up-sugary-deal-5197.html
Trading Market Established for Dried Distillers Grain
Florida-based BiofuelsConnect, an ethanol/biofuel trading brokerage firm, has entered the world of dried distillers grains (DDGs) by hiring James Holzer, a 15-year veteran of the agricultural trading industry and an agricultural economist. BiofuelsConnect is the first brokerage to enter this market and hopes to both capture a share of the profits and provide greater price discovery and transparency, thus improving market efficiency. The market totals about 28 million tons of DDGs a year, based on ethanol production of roughly 10 billion gallons a year. According to the National Corn Growers Association, every bushel of corn fermented into ethanol produces 17 lbs. of distillers grains, or about 1/3 of the whole fermented product. Mike Blackford of FCStone said that DDGs can Source: Laura Scott, Oil Price Service Biofuels Update, lscott@opisnet.com
Rahall Re-Elected Chair of House Natural Resources Committee; Announces Agenda for 111th Congress Rep. Nick J. Rahall (D-WV) was reelected by the Democratic caucus as chairman of the House Natural Resources Committee last week. He immediately released his agenda for the 111th Congress. In it, he affirms his resolution to increase drilling for oil and gas on Federal lands, but in an “environmentally and fiscally responsible manner,” and that the “gross mismanagement and malfeasance in the government royalty system” must be stemmed, and the collection of royalties made more transparent and efficient. In the same vein, he states that he will drive to reform the “corporate welfare” of the Mining Law of 1872, which allows for gold, silver, and other metals to be extracted from Federal lands without royalty payments. Under the agenda, the committee will lead efforts to plan for the effects of climate change on land and water resources, and study the potential for federal land use in climate mitigation strategy, such as using depleted oil wells and other formations for carbon sequestration or planting forests as carbon sinks or advocating efficient water management policies in the Western states. The committee will also specifically target renewable energy and technology that has the potential to mitigate climate change, including biofuels. On other issues, the committee has dedicated itself to promoting effective management and preparation for catastrophic wildfires, strengthening the National Park Service, empowering and promoting better relations with insular territories and Indian Tribes, and protecting oceans, wildlife, and endangered species.
Sources: http://www.huntingtonnews.net/political/081123-staff-politicalrahall.html
Billings Tries Unusual Approach to Capture Methane The Billings Regional Landfill, one of hundreds in the country that captures its methane gas, will begin chilling and cleaning the gas before transferring it to the Montana-Dakota Utilities natural gas pipeline, where it will be sold to end users. Of the 455 landfills capturing their methane, the Billings landfill is one of only 10 to follow this path, with most of the rest burning theirs for electricity or selling it to nearby factories, said Swarupa Ganguli of the EPA. Landfill gas-capture programs are spreading rapidly, particularly as nearby industries take advantage of the relatively cheap power and energy credits produced. In Missoula, Allied Waste Services sells both the methane and the energy credits produced to a nearby particle board factory. “We’ve always captured the gas but just never had quite enough to be commercially feasible until recently,” Allied Waste regional manager Max Bauer said. “It’s good to see everybody putting these in.” The Sheridan, WY solid waste manager says that a number of companies are interested in the potential for gas capture, but also said that local companies and county officials had “a lot of learning to do.” In Jackson County, NC, county officials constructed an “energy park” atop a landfill, using the gas produced to power two blacksmiths and several greenhouses. The Denton Sanitary Landfill in Texas uses captured gas to heat water, which in turn helps produce the biodiesel that fuels the landfill’s trash trucks. Ganguli states that this is only the beginning of a larger trend; her organization has identified 535 other candidate landfills for these types of programs, and says the rate of project development may greatly increase as they are forced to act by increasing legislation requiring more energy efficiency and renewable power. Source: http://www.billingsgazette.net/articles/2008/12/01/news/local/30-billings.txt
First Transcontinental Flight Using Biodiesel Florida-based Green Flight International has teamed with Lake Erie Biofuels to produce the first transcontinental flight, from Reno, NV, to Leesburg, FL, using predominantly biodiesel. “This transcontinental flight was distinctive in that 1,776 miles of the 2,486 total miles flown were powered on 100% biofuel,” said Green Flight International President and CEO Douglas Rodante. Only 710 miles of the flight were powered by a mixture of 50% biofuel and 50% standard jet fuel. The 50/50 fuel mix was used to compare performance data and demonstrate the capability of blending biofuel with existing jet fuel supplies.” Pains were taken to make sure that the flight conformed to FAA standards for fuel safety and use, and the organization has expressed interest in using the Green Flight International biofuel testmodel as a template for testing future generations of aviation fuel. Green Flight has said that they will follow this flight with another, potentially an inter-continental flight.
Sources: http://domesticfuel.com/2008/11/11/first-transcontinental-biodiesel-flight/
National Biodiesel Conference & Expo (Feb. 1-4) San Francisco, CA http://www.biodieselconference.org/2009/ ICAO Workshop: Aviation and Alternative Fuels (Feb. 10-12) Montreal, Canada http://www.icao.int/WAAF2009/ BioPower Generation 2009 (Feb. 12-13) Brussels, Belgium http://www.greenpowerconferences.com/biofuelsmarkets/biopower.html RFA National Ethanol Conference (Feb. 23-25) San Antonio, TX http://www.ethanolrfa.org/industry/conference/ RETECH 2009: Renewable Energy Technology (Feb. 25-27) Las Vegas, NV http://www.retech2009.com/ Renewable Energy World Conference & Expo North America (Mar. 10-12) Las Vegas, NV http://rewna09.events.pennnet.com/fl/index.cfm World Biofuels Markets Congress & Exhibition (Mar. 16-19) Brussels, Belgium http://www.worldbiofuelsmarkets.com/ Biomass 2009: Fueling Our Future (Mar. 17-18) National Harbor, MD http://biomass2009.com/
Writers: Jesse Caputo, Ned Stowe, Justin Mattingly, and James Hacker
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