Bioenergy Climate Protection and Oil Reduction/Issue29

At the American Wind Energy Association’s national workshop on March 7, Lt. Governor Pat Quinn promoted a renewable portfolio standard that would require electric utilities to provide eight percent or 4,000 megawatts (MW) of their power from renewable energy including wind, solar, and biomass by 2013. This amount of renewable energy alone would serve 1 million Illinois households, as well as relieve pressure on the electric power grid, create 7,800 jobs and boost economic growth by approximately $7 billion by 2013.

Source: http://www.renewableenergyaccess.com/rea/news/story?id=44319

State Governments Move to Use Biofuels

Wisconsin , Indiana , Ohio and Louisiana state governments have pursued state commitments to biofuels. Governor Jim Doyle of Wisconsin issued an executive order in March requiring state vehicles to reduce their use of petroleum gasoline 20 percent by 2010 and 50 percent by 2015 and to reduce the use of petroleum diesel 10 percent by 2010 and 25 percent by 2015.

The Indiana House of Representatives passed a bill which calls for the Environmental Quality Service Council (EQSC) to study the most effective way to implement the national Renewable Fuel Standard in Indiana, explore the feasibility of requiring all motor vehicles sold in the state to meet a Flexible Vehicle Standard and require that all those vehicles burn E85, and study the regulation of outdoor wood-burning furnaces and the use of methane gas from landfills and anaerobic digestion as a fuel source.

In early April, Ohio Governor Bob Taft and Ohio Department of Agriculture Director Fred Daily congratulated the relationship between Peter Cremer North America and DaimlerChrysler on their use of soy-based biodiesel. New Jeep Liberty vehicles with diesel engines that are manufactured in Toledo will be able to be fueled by biodiesel. Furthermore, the Ohio state legislature passed the Ohio Biofuels Bill, HB245. This bill provides $1 million to increase the number of E85 and biodiesel retail pumps available to the public and expand the terminal level blending infrastructure. It also requires the state vehicle fleet to use biofuels.

By a vote of 62-36 the Louisiana House of Representatives passed a provision requiring two percent of the total gasoline sold in Louisiana to be agriculture-based when ethanol production in the state reaches 50 million gallons annually or biodiesel production reaches 10 million gallons. The bill now must be voted on in the Louisiana state Senate. This bill passed the House only after adopting an amendment that makes participation by retailers and convenience stores voluntary.

All four states agreed that by promoting alternative fuel sources, not only will residents be less dependent on foreign oil but the states’ farmers will benefit economically. By using more alternative fuel, more money spent on fuel would stay in the state’s economy improving economic conditions, creating jobs and increasing income for farmers, while reducing impacts on the environment.

Sources: http://www.renewableenergyaccess.com/rea/news/story?id=44320
http://www.renewableenergyaccess.com/rea/news/story?id=44339
http://www.renewableenergyaccess.com/rea/news/story?id=44521
http://www.e85fuel.com/news/051906fyi.htm
http://www.legislature.state.oh.us/bills.cfm?ID=126_HB_245
http://www.renewableenergyaccess.com/rea/news/story?id=44837 http://www.legis.state.la.us/billdata/streamdocument.asp?did=387146

Iowa Legislature Passes Renewable Fuels Standard

Iowa entered into a national leadership role in energy with the passing of HF 2754. The bill, passed in the House on April 6 and in the Senate on April 11, was supported by the Iowa Farm Bureau Federation as well as the Iowa Soybean Association, Iowa Cattlemen Association, Agribusiness Association of Iowa, Petroleum Marketers and Convenience Stores of Iowa, the Iowa Motor Truck Association, and John Deere. An aggressive and achievable renewable fuel standard (RFS) for ethanol and biodiesel is part of the legislation along with an incentive program to benefit retailers and consumers, accountability mechanisms to keep the state moving toward its goal, and an infrastructure board to oversee the distribution of assistance in the form of grants for ethanol and biodiesel. The RFS for ethanol and biodiesel requires that gasoline and diesel include blends at 10 percent by 2010, 15 percent by 2015 and 25 percent by 2020. Furthermore, the legislature also passed HF 2759 which provides funding for the infrastructure component of the RFS.

Sources: http://www.renewableenergyaccess.com/rea/news/story?id=44547; http://www.iowafarmbureau.com/fullarticle.aspx?artid=23407
http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&hbill=HF2754

Vinod Khosla Pursues Californians for Clean Energy Vote

In a desire to help California cut its oil use by one-quarter within a decade, billionaire Vinod Khosla has introduced the Californians for Clean Energy campaign to win endorsement for clean energy on the state-wide ballot in November. The effect, if the bill is put on the ballot and passed, would be increased taxes on California oil production by up to $380 million a year, raising billions of dollars for investments in clean energy. Khosla, a founder of Sun Microsystems, a company that developed essential internet technology, has also been an investor in AOL, Amazon, Compaq, and Google.

Khosla hopes to improve the world by promoting clean energy initiatives and believes that it can succeed. Due to his past successes, the oil industry is running a counter-campaign called Californians Against Higher Taxes. Khosla believes that “[biofuel] is greener, cheaper, more secure than gasoline – and this shift won’t cost the consumer, automakers or the government anything.” Khosla has planned his counter-attack against Saudi oil companies who say they will drop the price of oil if biofuels become more popular by lobbying Congress to impose a tax on crude oil if the price falls below $40 a barrel; this would help safeguard investments in ethanol.

Source: http://www.economist.com/business/displaystory.cfm?story_id=5655161

New York State a Haven for Bioenergy Technologies

Governor Pataki and the New York state legislature have taken huge strides towards a bioenergy-friendly state by making the production and consumption of biofuels and bioenergy a top priority.

Bioenergy initiatives in New York State include an innovative $20 million program for the development of a cellulosic ethanol pilot facility, which will utilize willow, switchgrass, paper mill wastes and agriculture and forestry residues. Other initiatives include supporting the development of cellulosic feedstocks at projects across the state, not just for cellulosic ethanol but also for biodiesel, wood-burning power plants and conventional ethanol from corn.

Activities in New York State do not stop at feedstock production, but encompass a number of infrastructure development and tax initiatives. The Governor has recently proposed legislation to increase the number of service stations that sell biofuels, including ethanol and biodiesel, which will make it easier for consumers to purchase these alternative fuels. One of his latest proposals includes a bill that would exempt renewable fuels from the provisions of “exclusivity” contracts between fuel providers and retail service stations, which only allow the service station to sell specific brands of fuel, which quite often, do not include biofuels. Similar legislation has already passed in Iowa . Furthermore, the state already has enacted as part of its budget a renewable fuel production tax credit, Clean Pass and Green E-Z Pass Programs, which provide incentives for the use of hybrid vehicles, and has plans to install renewable fuel pumps at all 27 travel plazas along the New York State Thruway.

Source: http://www.ny.gov/governor/press/06/0508062.html
http://www.eere.energy.gov/news/enn.cfm?print
http://www.ny.gov/governor/press/06/0511063.html

Federal Grants of $4.2 Million Awarded to Local Woody Biomass Projects

On April 24, Agriculture Under Secretary Thomas Dorr announced grants totaling $4.2 million to 18 small enterprises for the development of woody biomass as renewable energy and new products. All grant recipients have to match the federal funds by at least 20 percent and were selected based on economic development of woody biomass into marketable products while reducing the costs of recovery. According to Dorr, “This grant program helps to reduce the risk of wildfires by removing built-up fuel hazards and improves forest health…these projects give an economic boost to our rural communities, increasing the nation’s sources of renewable energy.”

Source: http://www.usda.gov/wps/portal/usdahome?contentidonly=true&contentid=2006/04/0138.xml
http://www.fpl.fs.fed.us/tmu/grant/biomass-grant.html

New Web-based Feedback Form on House Agriculture Committee Website

At a farm bill field hearing in Colorado , Agriculture Committee Chairman Bob Goodlatte (R-VA) announced the committee’s new web-based form designed to gather feedback from the nation about current farm policy as well as input about the future of farm policy. The House Agriculture Committee has held several hearings across the country to hear directly from producers and has introduced the web-based form to allow producers who can not make it to the forums to give input about the reauthorization of the Farm Bill. Goodlatte expects to begin the farm bill debate in early 2007. The 2002 Farm Bill will expire in September 2007.

Source: http://agriculture.house.gov/press/109/pr060508-1.html or http://agriculture.house.gov/inside/feedbackform.html

House Passes Renewable Energy Funding In FY07 Agriculture Appropriations

In a late night session, the House passed the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, for FY 2007 (H.R. 5384), 378 to 46, with 8 Representatives not voting. This bill provides just under $94.5 billion (mandatory and discretionary) in agriculture-related spending and valuable funding for key renewable energy programs authorized in the 2002 Farm Bill (P.L. 107-171).

House Agriculture Renewable Energy Program Appropriations:

The Federal Procurement Program of Biobased Products (Sec. 9002) is funded at its original authorization of $1 million.
The Biodiesel Education Program (Sec. 9004) is funded at its original authorization of $1 million.
The Renewable Energy Systems & Energy Efficiency Improvements program (Sec. 9006) is funded at $20 million in discretionary funds, plus $3 million in mandatory funds for a total of $23 million, which makes the program fully funded. This is $12.7 million above the President’s FY07 budget request.
The Biomass Research and Development program (Sec. 9008) is funded at its mandatory funding authorization of $14 million. This is $2 million above the FY06 appropriation and the President’s FY07 budget request. (The total authorization, including discretionary funds, is $214 million for FY07).
The popular Value-Added Producer Grant program (Sec. 6401) is funded at $28 million in mandatory funds, down from its original authorization of $40 million for FY07, but up from its FY06 appropriation of $20.5 million.

Rep. Rosa DeLauro (D-CT), Ranking Member of the Agriculture Appropriations Subcommittee, again introduced a bold amendment to increase funding for renewable energy by $500 million. Unfortunately, her amendment was ruled out of order. This amendment also was considered in full committee but failed 24-36.

The Senate Appropriations Subcommittees have not received their funding allocations and, therefore, have not yet scheduled their markups, but markups are anticipated during the last two weeks of June. After Senate passage of its version of the FY07 Agriculture Appropriations bill, it will be conferenced with the House bill.

For the full release on House Agriculture Appropriations: http://www.eesi.org/publications/Press%20Releases/2006/5-24-06_house_passes_agapprops.htm

Foreign Relations Committee Clears Energy Legislation

The Senate Foreign Relations Committee passed three energy-related pieces of legislation introduced by Sen. Lugar (R-IN). The legislation now heads to the Senate floor. Brief descriptions of the legislation from the Foreign Relations Committee may be found below:

The United States-India Energy Security Cooperation Act of 2005, S. 1950, introduced by Lugar, would promote global energy security through increased cooperation between the United States and India in diversifying sources of energy, stimulating development of alternative fuels, developing and deploying technologies that promote the clean and efficient use of coal, and improving energy efficiency. The legislation will contribute to stabilizing global energy markets by joining the United States and India in a cooperative effort to address common energy challenges, including reducing oil dependency globally and increasing the world-wide availability of clean energy.

The NATO Energy Security Resolution, S. Res. 456, is a resolution introduced by Lugar that calls upon the United States to lead the discussion at NATO headquarters about the role the alliance could play in energy security. The resolution calls upon the President to submit to Congress a report that details “a strategy for NATO to develop secure, sustainable, and reliable sources of energy, including contingency plans if current energy resources are put at risk.”

The Lugar-Biden Climate Change Resolution, S. Res. 312, is a resolution expressing the sense of the Senate regarding the need for the United States to address global climate change through the negotiation of fair and effective international commitments.

Source: http://lugar.senate.gov/pressapp/record.cfm?id=255998
For text of legislation see: http://thomas.loc.gov/

New Federal Legislation

In recent months there have been a number of new bills introduced to combat high energy costs. These bills include provisions to increase biofuels production, require the production of flex-fuel vehicles, extend the renewable energy tax credits and a variety of other initiatives. See the list below for a brief description of these important bills. To find out the specifics of each bill use the following link to search by each bills bill number. http://thomas.loc.gov/

S. 2398 – Energy Competitiveness Act of 2006

On March 9, Senator Baucus (D-MT) introduced the Energy Competitiveness Act of 2006. This bill will establish an Advanced Research Projects Administration-Energy to initiate high risk, innovative energy research to improve the energy security of the United States and to extend certain energy tax incentives including the renewable energy production tax credits (extended to 2011), solar investment tax credits (extended to 2011) and the Clean Renewable Energy Bonds (extended to 2010). In addition many conservation, energy efficiency, alternative fuels and vehicles and domestic fossil fuel security credits were also extended. This bill is similar to S. 2401 – Alternative Energy Extender Act, introduced by Sen. Grassley (R-IA) and Baucus.

S. 2446 – American Fuels Act of 2006

On March 15, Senators Obama (D-IL) and Lugar (R-IN) introduced the American Fuels Act of 2006 to promote the national security and stability of the economy of the United States by reducing the dependence of the United States on oil through the use of alternative fuels and new technology, and for other purposes. This bill establishes an Office of Energy Security and provides a number of incentives for biofuels and flexible-fuel vehicles.

H.R. 4990 – Local Clean Energy Initiative Act of 2006

On March 16, Rep. Israel (D-NY) introduced Local Clean Energy Initiative Act of 2006 to provide for the establishment by the Secretary of Energy a program of Federal support for local governments that establish Clean Energy Bond Acts. This will establish a program to provide local governments that establish a Clean Energy Bond Act grants up to 20 percent of the costs of implementing clean energy projects funded by the Clean Energy Bond Act: projects include energy conservation, updating or converting municipal buildings to generate power from renewable energy sources and the replacement of automobiles owned by the local government with hybrid or flex-fuel vehicles.

H.R. 5027 – Landfill Gas Act of 2006

On March 28, Rep. Jindal (R-LA) introduced the Landfill Gas Act of 2006 which provides a tax credit for energy produced from biomass fuel.

S. 2571 – Breaking Our Long-Term Dependence (BOLD) Energy Act of 2006

On April 6, Senator Conrad (D-ND) introduced Breaking Our Long-Term Dependence (BOLD) Energy Act of 2006, a bill to promote energy production and conservation. This act would amend both the Energy Policy Act of 2005 and the Clean Air Act to increase the volume of available renewable fuels produced over the next 20 years. The bill includes a number of incentives to promote fuel economy, flex-fuel vehicles, alternative fuels (including a provision to grow energy crops on Conservation Reserve land), a renewable portfolio standard, an extension of the Clean Renewable Energy Bonds, extensions to other renewable energy and efficiency credits and a number of incentives for conventional energy technologies.

S. 2614 – Alternative Energy Refueling System Act of 2006

On April 7, Senators Thune (R-SD) and Obama (D-IL) introduced Alternative Energy Refueling System Act of 2006, a bill to amend the Solid Waste Disposal Act to establish a program to provide the lesser of a reimbursement of 30 percent or $30,000 for the installation of alternative energy refueling systems for a suite of alternative fuels including E85.

H.R. 5124 – Fuel Blend Reduction Act of 2006

On April 19, Rep. Paul (R-WI) and Rep. Green (R-WI) introduced Fuel Blend Reduction Act of 2006, to amend the Clean Air Act, provide for a Federal Fuels List, and study the effects of alternate fuels on air quality, energy supply, distribution, and use.

S.2747 – Enhanced Energy Security Act of 2006

On May 4, Senators Bingaman (D-NM), Bayh (D-IN), Coleman (R-MN), Lieberman (D-CT), Chafee (R-RI) Cantwell (D-WA), Collins (R-ME), Salazar (D-CO), Kerry (D-MA), Clinton (D-NY) and Nelson (D-FL) introduced the Enhanced Energy Security Act to enhance energy efficiency, conserve oil and natural gas through Federal program requirements, provide increased research and incentives for efficient vehicle technology, production incentives for cellulosic ethanol, a renewable portfolio standard, and a variety of other provisions.

H.R.5372 – Bioenergy Innovation, Optional Fuel Utilization, and Energy Legacy (BIOFUEL) Act of 2006

On May 11, Representatives Herseth (S-ND), Etheridge (D-NC), Pelosi (D-CA), Peterson (D-MN), Delahunt (D-MA) Kaptur (D-OH), Inslee (D-WA), Pomeroy (D-ND), Holden (D-PA), Ford (D-TN), Salazar (D-CO), Kind (D-WI), DeLauro (D-CT) and McCollum (D-MN), on behalf of the Democratic Rural Working Group, introduced the Bioenergy Innovation, Optional Fuel Utilization, and Energy Legacy Act, or for short, the BIOFUEL Act of 2006. This bill will promote the increased utilization of domestically produced, renewable, biobased motor vehicle fuel supplies and the increased manufacture of flexible-fuel vehicles in the United States . The bill increases the biofuels mandate (to 20 percent by 2015), expands the number of vehicles that can run on ethanol, increases the number of E-85 pumps, encourages research and development into new biofuel technologies, and provides financing incentives for cooperative and independent biofuel plants.

S. 2816 – Biofuels Security Tax Act of 2006

On May 16, Senators Harkin (D-IA), Lugar (R-IN), Johnson (D-SD), Dorgan (D-ND) and Biden (D-DE) introduced the Biofuels Security Tax Act of 2006 to provide an income tax credit for the manufacture of flexible fuel motor vehicles and to extend and increase the income tax credit for alternative fuel refueling property, and for other purposes

S. 2817 – Biofuels Security Act of 2006

On May 16, Senators Harkin (D-IA), Lugar (R-IN), Johnson (D-SD), Dorgan (D-ND) and Biden (D-DE) introduced the Biofuels Security Act of 2006 to promote renewable fuel and energy security of the United States . This bill includes an increase in the renewable fuels standard (60 billion gallons by 2030), requirements for dual-fueled automobiles and manufacturer credits to produce these vehicles, requirements for installation of E85 fuel pumps by major oil companies and other provisions.

S. 2829 – Clean Energy Development for a Growing Economy (EDGE) Act of 2006

On May 17, Senators Cantwell (D-WA), Reid (D-NV), Durbin (D-IL), Mikulski (D-MD), Dodd (D-CT), Menendez (D-NJ), Carper (D-DE), Dayton (D-MN), Kerry (D-MA), Reed (D-RI), Bingaman (D-NM), Feinstein (D-CA), Harkin (D-IA), Salazar (D-CO), Schumer (D-NY), Dorgan (D-ND), Clinton (D-NY), Leahy (D-VT), Johnson (D-SD), Boxer (D-CA), Lieberman (D-CT), Byrd (D-WV), Stabenow (D-MI), Levin (D-MI) and Biden (D-DE) introduced the Clean EDGE Act of 2006. The purpose of this bill is to reduce the addiction of the United States to oil, to ensure near-term energy affordability and empower American families, to accelerate clean fuels and electricity, to provide government leadership for clean and secure energy, to secure a reliable, affordable, and sustainable energy future, and for other purposes. Initiatives in this bill include: extensions to fuels and electricity credits for renewables, alternative fuel vehicle refueling property credits, incentives for the production of cellulosic ethanol, credits for flex-fuel vehicles, an increase renewable fuels standard, price gouging regulations and a number of conventional energy incentives.

Recent Studies

Canada’s Renewable Fuel Production Falls Behind Other Major Countries

In 2004, Canada produced 250 million liters (about 66,043,013 gallons) of ethanol, while Brazil , the United States , China , and the European Union all surpassed Canada by at least 50 percent. Although Canada has the feedstock and infrastructure to be a global leader in alternative fuel, it has fallen behind in development and production. Kory Teneycke, the executive director of the Canadian Renewable Fuels Association, believes a Renewable Fuels Standard that would require five percent of all gasoline and diesel to be blended with biofuels by 2010, is the most important step to increasing Canadian production. This requirement is part of the Conservative election platform. The Canadian government has been reluctant to provide loan guarantees to Iogen, an Ottawa-based producer of cellulose ethanol, but there are hopes that an arrangement can be worked out.

Source: http://www.canada.com/topics/news/agriculture/story.html?id=a650e5e6-b0d2-4574-ac5e-c8f39c6f012d&k=94563

Recommendation for Local Ownership of Biorefineries

In his article entitled Ownership Matters: Three Steps to Endure a Biofuels Industry that Truly Benefits Rural America, David Morris of the Institute for Local Self-Reliance outlines what the United States could do to include rural development in alternative energy. In Minnesota , for every dollar that is spent on gasoline, some 75 percent leaves the state economy; while for every dollar spent on ethanol in Minnesota , 75 percent stays in the economy. Morris recommends a strategy to promote local ownership by encouraging educational efforts, a plan allowing farmers to get their equity out of the biorefinery while keeping it locally owned, and last, a reduction of the federal ethanol incentive to half, which would then be pegged to an index comprised of the price of a bushel of corn and the wholesale price of a gallon of gasoline, and other factors as necessary. The other half of the credit could be turned into a producer payment that would go directly to the ethanol producer.

Source: http://www.newrules.org/agri/ownershipbiofuels.pdf or http://www.ilsr.org/

News Briefs

PHA-based Plastics Plant to Co-locate with ADM Wet Corn Mill in Clinton , Iowa

Metabolix and the Archer Daniels Midland Company (ADM) announced that their planned PHA plastics plant will be located in Clinton , Iowa . PHA-based plastics – a versatile family of polymers that are natural and renewable – will be manufactured adjacent to ADM’s wet corn mill in Clinton , utilizing the starch from the mill’s corn grind as a raw material for production of the plastics. Construction is expected to be completed in 2008 with the plant initially producing 50,000 tons of PHA plastics per year. G. Allen Andreas, Chairman, Chief Executive and President of ADM announced: “PHA natural plastics offer the global marketplace an alternative to traditional petroleum-derived plastics, and ADM is proud to use the farmers’ harvest to create new products for the emerging market for ag-based and industrial products.” ADM with Metabolix will be the first alliance to commercially produce PHA natural plastics.

Source: http://www.admworld.com/naen/pressroom/newspopup.asp?id=381

Climate Change and Agriculture: Milk, Weeds and Biofuels

At a “Climate Change and Agriculture” workshop in mid-March a number of academics addressed concerns about greenhouse gases and increasing warmer climates on agriculture. Larry Chase, professor at Cornell University ’s Department of Animal Science, reported that a warmer climate can affect milk production and cause heat stress in animals. Stressed animals will focus their energy on reducing excess heat and not producing milk. A study on herds in New York in 2005 reported a decrease of 5-15 pounds in milk production, or a loss of $150 per day for a herd of 100 cows. Lewis Ziska of the USDA’s Agricultural Research Service believes that the study of weeds must be pursued in relation to climate change. Increased growth in a variety of plants may proliferate with an increase in carbon dioxide; there will be no exception with weeds, which cost the agriculture industry $13 billion annually. John Duxbury of Cornell University emphasized biofuels – not only ethanol and biodiesel, but methane generation, grass pellets, and cellulose – as the future for farm profits.

Source: Jordan , S. (2006). Changes in climate may affect milk production. The Delmarva Farmer, 31:2, 1.

Minnesota Gasification Projects

In the spring of 2007, farmers in Luverne , Minnesota , hope break ground on the first commercial-grade, biomass ethanol plant in the United States , gasifying corn stalks. Spain currently has a facility under construction; however, it is relatively small in comparison to the plant that would be built in Minnesota . Rural Energy Marketing, a company led by Loren Forrest, is working on this initiative, propelled by President Bush’s State of the Union address. Forrest and his partner Brian Smit of South Dakota are banking on government grants and loan guarantees available for these types of ethanol plants. Chippewa Valley Ethanol in Benson is also interested in gasification of corn stalks, not for producing ethanol but for producing electricity. Another ethanol company in Little Falls, Minnesota is exploring wood chip gasification.

Source: http://minnesota.publicradio.org/display/web/2006/03/23/cellulosicethanol/

Energy Instead of Farm Waste Disposal

Tom Brinson, of Allen’s Family Foods, said the company has submitted a proposal to the Delaware Nutrient Management Commission for a steam plant run on poultry manure. The 14,000 ton annual capacity plant in Linkwood , Maryland , would use the energy for their chicken processing operation beginning in 2007. This would prevent 2 million pounds of nitrogen and phosphorus from entering waterways and prevent about 26 million pounds of greenhouse gases – as much as removing 10,000 cars from the road.

North Carolina , with large poultry and hog operations, has had a long standing problem with appalling disposal of carcasses and manure. Gasification of chicken carcasses is being tested by David Mayer, who has raised poultry for 27 years. Mayor, in collaboration with North Carolina State University , proposes to gasify poultry carcasses at 1,500 degrees in what looks like a pizza oven. The process begins with the use of propane but eventually gas generated by the waste is used as fuel. This process produces air emissions which are 10 percent less than the conventional incinerator of the same size, no foul odor and produces thermal heat which can be used. Three different gasifiers which hold 275 pounds, 500 pounds and 1,200 pounds each are available. Furthermore, each gasifier comes with a freezer which holds 2,100 pounds of waste. Rep. Bob Etheridge (D-NC) has seen the machines work and believes more farmers should start using gasifiers. He said he will work to get more federal dollars for projects like this.

Sources: Clougherty, S. (2006). Commission focusing on animal waste management. The Delmarva Farmer, 30:51, 1.

Associated Press. (2006). Gasification process could make chicken disposal easier. The Mid-Atlantic Poultry Farmer, 2, 4.

Ethanol Fire Safety

Fire Chief, a publication for fire departments and fire control, issued a statement warning fire chiefs of the flammability of E85 fuel. The 85 percent ethanol gasoline is easily ignited with heat, sparks, or flames and departments must be aware of this as the fuel becomes more popular, especially in the Midwest . The Department of Transportation recommends following Guide 127 in the 2004 Emergency Response Guidebook. The guidebook is available on the website www.firechief.com.

Source: http://firechief.com/news/Guide_127_032406/index.html

Hawaiian Electric Announces Transition to Biofuels

Hawaiian Electric Company (HECO), Hawaii ’s major electric utility, has announced that the utility would like to use locally produced ethanol in their new Campbell Industrial Park Generating Station set to open in 2009. HECO is also exploring the idea of using ethanol-diesel blended fuel in existing diesel-fired electricity generating units. According to Mike May, HECO president and CEO, the goal is to replace imported fossil fuel with local agricultural energy to keep space green and create jobs and money at home with a sustainable economy. HECO has released a solicitation for prospective suppliers of ethanol. Once this is complete, the Public Utilities Commission with input from the Consumer Advocate, will issue a second, more detailed solicitation. As part of HECO’s multi-phase biofuels investigation, a study conducted by the University of Hawaii ’s College of Tropical Agriculture and Human Resources has found biodiesel and ethanol to be the best biofuel candidates in Hawaii , based on supplies, compatibility, and economic cost. The second phase is a biofuels combustion test program, and finally, the third phase is an assessment of the needed facilities and operational changes to use biofuels in existing generators.

Source: http://www.renewableenergyaccess.com/rea/news/story?id=44441
http://www.heco.com/CDA/frontDoor/0,2003,,00.html

Possible Future for the Tobacco Plant

The Alternative Uses of Tobacco Project in Southern Maryland is investigating new ways to use the tobacco plant. The current goal is to establish a tobacco-based biorefinery. The University of Maryland is assessing the plant to identify its attributes which could be used for energy or other products. The hardiness of the plant and its variety of carbohydrates, along with nutritional proteins and amino acids, are proving its durability for the project. Tobacco proteins could be used in shampoos, cosmetics, and pet food. The use of tobacco biomass can reduce greenhouse gases while creating a new market for the tobacco farmer.

Source: Jordan , S. (2006). Alternative tobacco uses discussed to aid industry. The Delmarva Farmer, 31:1, 1.

University of New Hampshire Begins to Use Biofuel

The University of New Hampshire will begin to convert waste vegetable oil from dining facilities on campus into a usable biofuel. The 100 percent biodegradable biofuel product will replace heating oil and diesel fuel in several areas on campus. MBP, Bioenergy was granted the contract at UNH to use its patent-pending biofuel processor. Though terms of the contract have not been released, the campus will save on waste vegetable oil disposal costs and heating oil costs. Jim Proulx, president of MBP, Bioenergy describes the contract with UNH as an ‘important milestone’ for the company. He hopes that this will be the first of many installations at university campuses across the country.

Source: http://www.seacoastonline.com/news/03082006/business/91515.htm

Fuels Reduction Project Turned Energy Production

For the last five years, David Russell of Western Woodfuels has struggled with the leftover slash and woodchips from his fuels reduction business. Slash usually left on site or composted for topsoil could surely be used for something else. After conducting his own research, Russell found that woody biomass has been used as fuel in Europe since World War II, fueling whole cities such as Copenhagen with wood-burning boilers – biomass boilers.

Russell is now a local distributor of biomass boilers through Fink Machine, the Canadian distributor of KOB, an Austrian-made biomass boiler manufacturer. Russell’s goal is to merge the selling of biomass boilers with his forest fuel reduction company. Although Russell has not sold a boiler yet, he believes that he could provide customers of boilers with cheap fuels, especially as the price of natural gas continues to rise. His plan is to chip wood for fuel reduction at a project and then to sell the chipped wood to a boiler customer. Ideally, he could sell boilers to customers who already have a fuel source on their property, such as wood pallets. Otherwise, a balance between fuel source, transportation costs and boiler size will all have to be considered. Although the fully-automated boilers cost more initially, a boiler has the potential to pay itself off a quarter of the way through the life of the boiler.

Source: http://www.dailyinterlake.com/articles/2006/03/12/business/bus01.txt

Douglas Faulkner: Pioneer in Virginia Biodiesel

On March 1, 2006 , Douglas E. Faulkner died at age 51 after a long battle with cancer. Faulkner was a strong believer in the success of biofuels and in 2004, along with his father and brother, developed and constructed Virginia Biodiesel Refinery. The refinery was the first of its kind in Virginia and, due to its innovation, was chosen for a site visit by President Bush in May of 2005 to discuss the need to develop alternative sources of energy. The President praised Virginia Biodiesel for “using one of the world's oldest industries to power some of the world's newest technologies.” Faulkner testified on behalf of the biofuel industry before the U.S. Senate in July of 2005, and will be remembered for his support of biofuels, agriculture and its growers.

Sources: (2006). Douglas E. Faulkner, 51. The Delmarva Farmer, 31:3, 9; http://www.whitehouse.gov/news/releases/2005/05/20050516.html

Paul Dana 1975-2006

Indy Racing League driver Paul Dana died on March 26 at the age of 30 after Dana’s car hit the car of Ed Carpenter at the Toyota Indy 300 at Homestead-Miami Speedway.

Dana brought Team Ethanol sponsorship to the Indy Racing League in 2004. Ron Lamberty, Vice President for the American Coalition for Ethanol, said Dana was a true believer in ethanol. Dana wasn’t just sponsored by the product, he also looked forward to opportunities to publicize ethanol. Dana’s promotion of ethanol culminated in 2006 with the decision to incorporate 10 percent ethanol in all IndyCar Series cars, which must all use the same fuel, along with the even bigger decision of the Indy Racing League (IRL) to make the switch to 100 percent fuel-grade ethanol in all IndyCar Series cars in 2007.

Phil Casey, IRL senior technical director, states that “the transition between methanol and ethanol in our cars has been very smooth. Our cars don’t sound differently, smell differently or run differently than they have in the past. It’s been a seamless transition.”

On April 4, it was announced that the ethanol legacy will live on through driver Jeff Simmons as the driver for the No. 17 Team Ethanol Honda/Panoz/Firestone car. Simmons said he is honored to promote Dana’s message of the need for clean-burning, renewable fuel ethanol. Dana’s passion for racing and his enthusiasm and dedication to ethanol will continue as ethanol takes its place in Indy racing.

Sources: http://www.pauldana.com/ or http://www.ethanol.org/
http://www.drivingethanol.org/aspx/indy_racing/industry_tribute.aspx
http://www.ethanolrfa.org/media/press/rfa/view.php?id=615

One Crop, Two Fuels: Extracting Oil for Biodiesel from Ethanol Byproduct

Veridium Corporation has introduced a process that extracts corn oil from an ethanol distiller’s dried grain (DDGs), a byproduct of ethanol production. Veridium has five orders for their Corn Oil Extraction System, which will be installed at no cost to ethanol plants in exchange for buying back the oil from the plant after extraction at below market cost. This extraction process increases ethanol plant efficiencies because it reduces the energy required for drying the distiller’s grain. Veridium then sells the oil to Mean Green Biofuels, Inc., which hopes to convert the oil into biodiesel in the future, but currently is reselling the oil on the open market. An ethanol plant in North Dakota is participating in the process, with plans for extractors in plants in Illinois , Minnesota , and Wisconsin . According to Veridium, DDGs produced by today’s ethanol industry contain roughly 300 million gallons of corn oil, 75 percent of which could be removed by the extraction process, then converted – gallon for gallon – into biodiesel. With current contracts, Veridium can collect as much as 9.7 million gallons of corn oil per year.

Source: http://www.eere.energy.gov/news/enn.cfm#id_9892
Background: http://www.eesi.org/publications/Newsletters/BCO/bco%2028/bco%2028.htm#rs_1

What Type of Fuel Source Should Be Used to Produce Biofuels?

In a question posted on Renewable Energy Access, coal was brought up as a fuel to generate power for ethanol production. Currently only one ethanol plant runs on coal, but more plants are under construction to do the same. In Q & A with Scott Sklar, Sklar illustrates that it is not necessary to move to coal when there are a number of other technologies and feedstocks available to generate power for ethanol plants. For example, Corn Plus in Minnesota is close to completing a project that would burn syrup normally put in distillers dried grains. Likewise, Central Minnesota Ethanol Co-op is attempting to build a biomass gasification addition to an existing plant that would burn waste wood chips and the plant’s VOCs. Sklar believes that the best route would be for ethanol plants not to run on its own ethanol production (a possibility posed in the original question), but to use the part of the original biomass resource that cannot be easily converted to ethanol. Biofuel plants should use biomass resources for thermal and electric energy to utilize combined heat and power, landfill gas and biogas, geothermal and solar thermal, wind and water energy, and photovoltaics to generate renewable liquid fuels rather than coal.

Source: http://www.renewableenergyaccess.com/rea/news/section?id=15#44624

Ethanol Stocks Increase with Limited Producers

Investments in ethanol began at the grass-roots level last year with farmers beginning the surge. Now, investors are searching for stocks to buy, doubling the price of ethanol over the past 12 months to about $2.65 a gallon. Archer-Daniels-Midland, generating only five percent of its revenue from ethanol, is at the top of investors’ lists with shares rising 50 percent so far this year. At the beginning of April, VeraSun Energy and Aventine Renewable Energy Holdings both filed to launch initial public offerings of their shares; they are the second and third largest producers of ethanol, respectively.

Pacific Ethanol’s stock nearly tripled with the announcement of Microsoft’s Bill Gates’s investment of $84 million in five ethanol plants on the West Coast. The price of gasoline, the Energy Policy Act of 2005 (set to nearly double ethanol production by 2012), and the denial of liability protection to the oil industry for the gasoline additive MTBE have pushed prices of ethanol and stocks upward.

Source: Kilman, Scott. (2006). Ethanol Shifts Share Prices into Overdrive. The Wallstreet Journal, April 13, C1-2.

EPA Honors Willie Nelson for Biodiesel Efforts (from EESI Clean Bus Update)

Where there’s a BioWillie, there’s a way. Country legend Willie Nelson was honored by the U.S Environmental Protection Agency (EPA) for his efforts to promote biodiesel. The EPA Region 9 recognized Nelson at its 8^th Annual Environmental Awards Ceremony in San Francisco . The awards recognize contributions to the environment in California , Arizona , Nevada , Hawaii , Pacific Islands and tribal lands. This year EPA recognized 39 groups and individuals, out of 166 nominees. According to EPA Regional Administrator Wayne Nastri, “These groups and individuals have applied creativity, teamwork and leadership in addressing many of the West’s most pressing and complex environmental problems.”

Nelson has been a tireless advocate for biodiesel nationwide. In December 2004, he founded the Willie Nelson Biodiesel Company to make available renewable, cleaner burning biodiesel at truck stops across the country. His goal is to increase the use of this fuel to help reduce dependence on foreign oil and support local farmers. Nelson’s advocacy has significantly increased the visibility of biodiesel. Recently Willie Nelson Biodiesel partnered with Pearson Ford Fuels, based in San Diego , and distributor Plavan Petroleum to create California ’s first “BioWillie” biodiesel retail outlet.

For more information about BioWillie biodiesel, please see:
http://www.wnbiodiesel.com/

For more information about EPA Region 9 Environmental Awards, please see:
http://yosemite.epa.gov/opa/admpress.nsf/
9e50770d29adb32685257018004d06fd/f1f7254ccd34aa9c852571540060c78e!OpenDocument

Wood-burning Boiler Replaces Coal in Portsmouth , New Hampshire

Public Service of New Hampshire (PSNH) opened the Northern Wood Power Project at the Schiller Station power plant in Portsmouth to retire one of three coal-burning boilers and replace it with a boiler that burns wood materials. The initiative was described by Rep. Jeb Bradley (R-NH) as a “win for everyone”. Bradley, an official who helped make this project possible, explained the benefits of diversifying the fuel mix, which in turn will create cleaner emissions, support the state’s forestry industry by disposing of excess trees and branches, generate $20 million in revenue for timber farmers, and provide enough power for approximately 50,000 homes in New Hampshire . Bradley sponsored the Clean Power Act in New Hampshire and has worked in Congress to modify the tax credit for open biomass facilities to ensure credit for the Schiller Station.

Sources: http://www.house.gov/bradley/20060413_main.html; Foster’s Online. Dover , New Hampshire , April 14.

DuPont, AES, and KPCB Announce Investments in Clean Energy

DuPont recently announced plans to accelerate biofuel initiatives. Currently, the company generates $300 million in revenue from biofuels but plans to dramatically increase activity by 2010 through research and new design for a biorefinery. Likewise, the AES Corporation, one of the world’s largest power companies, is seeking to invest $1 billion in alternative energy over the next three years – a substantial increase from the already $265 million the company has invested in wind energy since 2004. Biofuels, energy storage, and energy efficiency are all prospects for pieces of the $100 million investment announced by Kleiner Perkins Caufield & Byers in February.

Source: http://www.eere.energy.gov/news/enn.cfm#id_9924

High Oil Prices Addressed at RFA Meeting by President, Auto Industry

President Bush addressed the mitigation of high oil prices at the Renewable Fuels Association on April 25. With a recent surge in prices and expected summer peaks, the President made a number of suggestions such as ending certain tax breaks for energy companies, suspending shipments to the Strategic Petroleum Reserve over the summer, expanding tax credit for purchases of hybrids and clean diesel vehicles, waiving of environmental clean-air requirements, and increasing the production and use of ethanol while developing hydrogen technology.

Also at the meeting, DaimlerChrysler AG announced its plan to increase production of its flex-fuel E85 vehicles to a quarter of its total production by 2008. General Motors Corporation plans to expand its production with 400,000 E85 vehicles in 2006 and 500,000 set for 2007. Ford plans to build 250,000 vehicles capable of running on E85. With car manufacturers expanding production of flex-fuel vehicles, the issue now is to increase the availability of E85 at fueling stations.

Sources:

http://www.washingtonpost.com/wp-dyn/content/article/2006/04/25/AR2006042500762.html
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/25/AR2006042501900.html
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/25/AR2006042501737.html

Goldman Sachs & Co. Invest in Iogen Corporation

As cellulosic ethanol gains ground, it is no surprise that Goldman Sachs & Co. has invested $27 million with Iogen Corporation. The funds are to be used to accelerate the commercialization of Iogen’s cellulosic ethanol technology. With its investment Goldman Sachs owns a minority stake in Iogen. “Goldman Sachs is the first major Wall Street firm to make a commitment to cellulosic ethanol”, said Brian Foody, Iogen CEO.

Source: http://www.iogen.ca/news_events/press_releases/