Bioenergy Climate Protection and Oil Reduction/Issue29

High natural gas prices have convinced the management of two corn ethanol plants in Minnesota to replace their natural gas consumption with biomass. For the uninitiated, biomass is any plant material, and generally refers to plant material used for energy. Common biomass materials include wood waste, crop residues, and dedicated energy crops like hybrid poplar and switchgrass. Both the Chippewa Valley Ethanol Company (CVEC) and the Central Minnesota Ethanol Cooperative (CMEC) are installing biomass gasifiers this year that will use waste biomass to produce heat and electricity to replace energy previously purchased on the market. In addition to improving their bottom line and shielding them from energy price fluctuations, this will also dramatically improve the CO₂ emissions profile of their fuel, and set the stage for producing cellulosic ethanol.

Faced with high natural gas prices, many ethanol plant operators are looking for other sources of process heat. According to a recent study (Tilman et al 2006), 60 percent of the lifecycle energy used in producing ethanol is made up of energy used in the plant for such processes as cooking the corn, distilling the ethanol, and drying the distillers grain. Most plants use natural gas to supply that energy.

High natural gas prices are causing problems for ethanol plants all over the Midwest . According to an article in Ethanol Producers Magazine from September 2005, CMEC spent $250,000 per month on natural gas in 2002 -- by 2005 that cost had doubled to $500,000 per month.

Sebesta Blomberg, a technical and business solutions provider, is working with the Central Minnesota plant to plan their gasification project. They connected the plant with a technology provider, Primenergy of Tulsa, OK, and helped connect the plant with a source of biomass. CMEC is located in central Minnesota on the boundary between farm and forest country. That means that a wood supply was widely available. The cooperative has signed a 10-year contract with a supplier of wood waste.

Not only will the plant replace natural gas, but it will also produce electricity. The gasifier will power a combined heat and power system that will sell 1 MW of green electricity to Xcel Energy.

In addition to saving money for the plant, the new equipment will dramatically improve the environmental profile of the fuel. The typical fossil energy ratio of a corn ethanol plant is around 1.7:1. CMEC, with its new equipment, will have an energy ratio of 3.15:1. In other words, for every unit of fossil energy used in production, they’ll get 3.15 units of ethanol. This translates into reduced fossil energy consumption, and a greater reduction in greenhouse gas emissions.

Frontline Bioenergy is the lead in designing and building the gasifier for Chippewa Valley . They plan to have Phase 1 of their project operating by early 2007. By then they will have a 70 ton per day gasifier operating using a combination of wood chips and corn stover. This will replace about 20 percent of the plant’s natural gas. When Phases 2 and 3 are completed in early 2009, they will replace over 90 percent of the plant’s natural gas using primarily corn stover. Frontline’s gasifier is especially suited for utilizing a variety of such feedstocks. This project should have a similar renewable energy ratio to the Central Minnesota project.

These projects have a variety of immediate benefits (fossil energy reduction, cost savings), but they are really important because they’re positioning the ethanol business to move towards cellulosic ethanol. This is true for two reasons: they’re helping plants learn how to collect and handle biomass, and they’re helping plants learn how to use gasification technology, which can be a precursor to production of liquid fuels such as ethanol and synthetic gasoline and diesel from biomass.

The Department of Energy has calculated that up to 1.3 billion tons of biomass could be produced for energy purposes in the United States without significant impacts on the food supply. This is enough biomass to replace more than one third of current petroleum consumption. The problem is that while this biomass is available, it isn’t stacked up outside the plant waiting to be used. There are logistical challenges in collecting and storing that biomass. Most industrial plants are hesitant to participate in such projects involving new technology and large scale biomass supply logistics. These are risks that a plant isn’t willing to take until it has a proven technology. Thus, the chicken and egg problem with cellulosic ethanol – technology risk and feedstock risk combined make it difficult to demonstrate cellulosic ethanol plants.

The CMEC and CVEC projects are getting around this problem in a clever way – by selecting a reliable feedstock for demonstrating the technology. Both projects will be using waste wood for their first phase – a feedstock that is a by-product of another operation (hence wood “waste”). Then, once the technology is demonstrated, they can tackle the feedstock challenge by building a feedstock supply for a proven technology. Once a feedstock supply is collected and available, it could be used for various gasification technologies.

The advantage of gasification technology is that it can be a bridge to various other energy technologies. Gasification can be combined with gas clean-up and methanation to produce pipeline quality natural gas. It also can be paired with various processes to produce a variety of liquid fuels, including synthetic gasoline and diesel and, yes, ethanol. Other possibilities for products from gasification include purified hydrogen, ammonia for fertilizers, and acetic acid and bioplastics. Engineers with both Frontline Bioenergy and Sebesta Blomberg feel that the plants they’re working with will produce liquid fuels from gasification in the near future. Once the plant gasifies enough biomass to power the ethanol plant, it can start exporting energy from the gasifier, either as natural gas or liquid fuels. So, in answer to the commonly asked question of whether a corn ethanol plant can transition to a cellulosic ethanol plant? The answer would appear to be yes. And CMEC and CVEC are showing the way.

Sources:

Hill, J., E. Nelson, D. Tilman, S Polasky , and D Tiffany. Environmental, economic, and energetic costs and benefits of biodiesel and ethanol biofuels. Proceedings of the National Academy of Sciences. 2003 103:11206-11210.

Korba, Ron. “Turning Off the Valve”. Ethanol Producers Magazine. September 2005.

Federal Legislative Updates

Senate Appropriations Committee Approves Increased Biomass Energy Funding for FY07

Tuesday, June 20, the Senate Appropriations Subcommittee on Agriculture marked up the FY07 Agriculture appropriations bill and funded the valuable and popular Renewable Energy Systems & Energy Efficiency Improvements program (Sec. 9006) at $25 million discretionary. This is an increase of $2 million above the program’s original authorization of $23 million and an increase over the FY06 funding level ($23 million). The House has funded this program at $23 million, so differences will be worked out in the conference committee.

The Value-added Producer Grant program (Sec. 6401) is funded at $48 million – $20 million in discretionary funds and $28 million in mandatory funds; this is up from its original authorization of $40 million for FY07 and its final appropriation of $20.5 million in FY06. The House FY07 funding level for this program is $28 million.

The increasingly important Federal Procurement Program of Biobased Products (Sec. 9002) is also fully funded at $1 million, plus an additional $1.5 million for research and labeling. The Biodiesel Education program (Sec. 9004) is fully funded at $1 million. The Biomass Research and Development Act is funded at $14 million, an increase of $2 million above the FY06 funding level and the President’s budget request for FY07, but it does not come close to the program’s new authorization of $214 million of combined mandatory and discretionary funding provided in the Energy Policy Act of 2005 (P.L. 109-58). The House bill funds all of the above-mentioned programs at these same levels.

On June 27, the Senate Energy and Water Appropriations Subcommittee funded the Bioenergy program (Sec. 931(c) of Energy Policy Act of 2005 (P.L. 109-58)), at its full authorization of $213 million for FY07. This is an increase of $63 million over the President’s request and the House-passed appropriations level. This is also an increase of $123 million over the FY06 funding level. The Regional Bioeconomy Development Grants (Sec. 945) received $3 million; this program was not in the President’s request or in the House bill.

The Senate committee report directs the Department of Energy (DOE) to study the “reverse auction” authorized in Sec. 942, Production Incentives for Cellulosic Biofuels. The Senate bill also clarifies language in Title XVII of EPAct 2005, Incentives for Innovative Technologies, which authorizes DOE to execute federal loan guarantees for various technologies, including the Cellulosic Biomass Ethanol and Municipal Solid Waste Loan Guarantee Program (Sec. 1511(b)). Loan guarantees allow eligible projects to use private financing to cover the risk premium traditionally covered by DOE, but still provide the credit backing of the federal government. This can lower the cost of money substantially for projects and catalyze expanded investments in new technologies. The committee also provided an increase of $3.2 million to the Energy Information Administration (EIA) to support additional surveys on ethanol and gasoline markets.

Both the Senate Agriculture and Energy and Water Appropriations still need to be passed by the full Senate and then conferenced with the House.

Source: EESI Press Releases

Senator Obama Asks for Oil Companies to Give Back to the Consumer

On May 23, Senator Obama (D-IL) introduced S. 2984 – Future Investment to Lessen Long-term Use of Petroleum Act or FILL UP Act -- a bill that would require oil companies achieving first quarter 2006 profits over $1 billion dollars to invest no less than 1 percent of the profits into installing E85 or other alternative fuel pumps at gas stations across the country. This requirement proposed by Sen. Obama would complement a tax credit of up to $30,000 which is available to offset installation costs of establishing alternative fuel pumps. The introduced bill can be expected to generate over 7,000 new E85 pumps throughout the country, if enacted. According to Sen. Obama, "It's time for the oil companies to give something back to America by investing just 1 percent of their record profits into the cheaper, cleaner renewable fuels like E85 that can finally free us from our dependence on Middle East oil."

Sources: Renewable Energy Access and Senator Obama Press Release

Senator Harkin (D-IA) Works for Movement Towards a Biobased Products Future

Sen. Harkin has had a busy month trying to move the United States in the direction of a biobased product future. On June 14^th Sen. Harkin welcomed attendees of a Biobased Stakeholders’ Workshop and applauded the formation of the Alliance for a Biobased Economy (ABE). ABE’s mission is to facilitate increased purchasing, by the federal government, of biobased products as well as increased general use of biobased products. Currently there are 32 very diverse members in ABE, including National Corn Growers Association, American Farm Bureau Federation, American Soybean Association, Consumer Federation of America, National Farmers Union, Environmental and Energy Study Institute, and Natural Resources Defense Council.

The three objectives of the Workshop were:

Increasing understanding among biobased manufacturers and agricultural industry representatives on the status and plans for implementation of biobased procurement by the Federal Government
Increasing understanding among biobased manufacturers and agricultural industry representatives regarding the process of designating items for government procurement
Identifying individual and collective strategies to increase the use of biobased products by the Federal Government

Speakers at the Workshop included Marty Ross, Director of the United Soybean Board; Peter Thomas, USDA Deputy Assistant Secretary for Administration; and Tom Dorr, USDA Under Secretary and Energy Chair. The three panel discussions were entitled “USDA Farm Bill Biobased Procurement,” “Federal Agency,” and “The Path Forward.” The panels were comprised of many distinguished speakers all addressing the future of biobased products.

Both the Biobased Stakeholders’ Workshop and ABE will contribute to the execution of Sen. Harkin’s co-authored provisions in the 2002 Farm Bill which require the federal government to give preference to purchasing biobased products if they are available, perform well and are reasonably priced.

Source: Senator Harkin Press Release and Biobased Stakeholders' Workshop Final Agenda

American Soybean Association Rallies Behind Permanent Tax Incentives

The Renewable Fuels and Energy Independence Promotion Act (H.R. 5650), co-sponsored by Reps. Kenny Hulshof (R-MO) and Earl Pomeroy (D-ND), seeks to make biodiesel and ethanol tax incentives permanent. The tax incentives were introduced and signed into law in 2004, largely with the backing of the American Soybean Association (ASA). Last year in the Energy Policy Act of 2005 (P.L. 109-58) the incentives were extended until 2008. With permanent incentives, the ASA says there will be “long-term demand for biodiesel made from soybean oil.”

Currently the excise tax credit is a penny per percentage point of biodiesel blended with petroleum diesel for what is called “agri-biodiesel.” There is also a small agri-biodiesel producer credit for plants with annual capacities less than 60 million gallons. This amounts to an income tax credit worth 10 cents per gallon for up to 15 million gallons of agri-biodiesel produced in a year.

Reps. Hulshof and Pomeroy touted the bill as a significant step in reducing our dependence on foreign oil and as a vehicle to stimulate economic growth in the United States . Rep. Pomeroy noted that the bill can provide stability to an emerging industry.

Further Information: http://southeastfarmpress.com/news/062706-ASA-biodiesel/index.html

DOE’s Office of Science Offers $250 Million for New Bioenergy Research Centers

On Wednesday, August 2, DOE announced that the Office of Science will spend $250 million to establish and operate two new bioenergy research centers. These Centers will conduct research to accelerate the development of cellulosic ethanol and other biofuels. Their specific missions will be to conduct systems biology research on microbes and plants to enable better understanding of how to reengineer biological processes for more efficient conversion of plant fiber into ethanol.

Universities, national laboratories, nonprofit organizations and private firms are all eligible; applications are subject to scientific peer review. Up to $125 million is available per center; $25 million will be provided by the Office of Science in the first year for the establishment of each center and up to $25 million per year for the next four years for operational purposes. Applications are due by February 1, 2007 at 8 pm EDT .

Click here for more information on the Bioenergy Centers
Click here to view solicitation for Bioenergy Research Centers

Click here to view PDF solicitation for Bioenergy Research Centers

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 bill number. http://thomas.loc.gov/

H.R. 5395 – Energy Freedom Bonds Act of 2006

On May 16, Rep. Israel (D-NY) introduced the Energy Freedom Bonds Act of 2006, which allows the Secretary of the Treasury to issue Energy Freedom Bonds to finance programs to facilitate the research, development, and deployment of clean renewable energy technologies, including solar heat, solar light, wind, geothermal energy and biomass.

H.R. 5398 - USA Fuels Act of 2006

On May 16, Reps. Salazar (D-CO), Gutknecht (R-MN) and Osborne (R-NE) introduced USA Fuels Act of 2006, which would exclude from the definition of renewable fuel any fuel that is imported or derived from any matter that is imported from the renewable fuel standard.

H.R. 5431 – Harmonized Tariff Schedule for Ethanol

On May 19, Rep. Boswell (D-IA) introduced a bill to amend the Harmonized Tariff Schedule of the United States to extend the tariff duties on ethanol to January 1, 2011 .

S. 2984 – Future Investment to Lessen Long-term Use of Petroleum Act or FILL UP Act

On May 23, Sen. Obama (D-IL) introduced Future Investment to Lessen Long-term Use of Petroleum Act or FILL UP Act to require certain profitable oil companies to expend one percent of recent quarterly profits to install E-85 fuel pumps in the United States .

S. 2993 – Strategic Energy Fund Act of 2006

On May 23, Sen. Clinton (D-NY) introduced the Strategic Energy Fund Act of 2006 which would amend the Internal Revenue Code of 1986 to impose a temporary oil profit fee and to use the proceeds of the fee collected to establish a Strategic Energy Fund and expand certain energy tax incentives. The fund would be used to finance clean energy research and alternative fuel projects. The bill also increases the rate of the tax credit for investment in alternative fuel vehicle refueling property from 20 to 50 percent and to a cap of $50,000 for the amount of such credit and extends the credit to the earlier of December of 2014 or 20,000 refueling properties. The bill expands eligibility for the small ethanol producer tax credit for producers of sucrose or cellulosic ethanol. Extensions for income and excise tax credits for biodiesel and other renewable technologies are through 2014. The bill also creates new tax credits for the manufacture of flexible fuel and advanced technology motor vehicles; investment in fuel-efficient motor vehicle fleets; investment in wind energy property; and captured carbon dioxide processes to enhance oil and natural gas recovery. Furthermore, the bill extends through 2017 the tax credit for producing electricity from renewable resources.

H. Res. 843 – Expressing the sense of the House of Representatives that the United States should seek to achieve complete energy independence by 2015

In May 25, Rep. Drake (R-VA) introduced a resolution expressing the sense of the House of Representatives that the United States should seek to achieve complete energy independence by 2015. The resolution calls for a variety of renewable and alternative fuel investments in infrastructure, education and research. It also includes a number of conventional energy suggestions.

H.R. 5592 - Growing Responsible Energy and Environment Nationally through Federal Energy Decisions Act of 2006

On June 13, Rep. Weller (R-IL) introduced Growing Responsible Energy and Environment Nationally through Federal Energy Decisions Act of 2006, a bill to amend the Energy Policy Act of 1992 to direct the head of each Federal agency to ensure that, in areas in which ethanol-blended gasoline is reasonably available at a generally competitive price, the Federal agency purchases ethanol-blended gasoline containing at least ten percent ethanol rather than nonethanol-blended gasoline, for use in vehicles used by the agency that use gasoline. The bill also contains a similar provision for biodiesel.

H.R. 5611 – Fuel Consumption Education Act

On June 14, Reps. Conaway (R-TX), Upton (R-MI), Hall (R-TX), Towns (D-NY), and Gene Green (D-TX) introduced the Fuel Consumption Education Act. Additional cosigners are Rogers (R-MI), Fossella (R-NY), Bass (R-NH), Whitfield (R-KY), Sessions (R-TX) and Doolittle (R-CA). This bill provides for the establishment of a partnership between the Secretary of Energy and appropriate industry groups for the creation of a transportation fuel conservation education campaign, and for other purposes. The bill was reported out of the Committee on Energy and Commerce with one amendment on June 28 and reported to the whole House.

H.R. 5633 – Energy Efficient Buildings Act of 2006

On June 16, Reps. Biggert (R-IL), Honda (D-CA) Reichert (R-WA) Schwartz (R-MI), Boehlert (R-NY), Gordon (D-TN), Ehlers (R-MI) , Lipinski (D-IL), McCaul (R-TX), and Baird D-WA) introduced Energy Efficient Buildings Education Act, a bill to establish a program of demonstration and commercial application of advanced energy efficiency technologies and systems for buildings.

H.R. 5634 – Advanced Energy Initiative Act of 2006

On June 16, Reps. Biggert (R-IL), Boehlert (R-NY), Calvert (R-CA) and Ehlers (R-MI) introduced the Advanced Energy Initiative Act of 2006, a bill to authorize research, development, demonstration, and commercial application activities for advanced energy technologies including coal, nuclear, battery, biofuel, hydrogen and solar photovoltaics and wind.

S. 3543 – Ten-in-Ten Fuel Economy Act

On June 20, Senators Feinstein (D-CA), Snowe (R-ME), Durbin (D-IL), Chafee (R-RI), Inouye (D-HI), Cantwell (D-WA), Nelson (D-FL), Boxer (D-CA), Lautenberg (D-NJ), Menendez (D-NJ), Lieberman (D-CT), and Collins (R-ME) introduced Ten-in-Ten Fuel Economy Act, a bill to improve passenger automobile fuel economy and safety, reduce greenhouse gas emissions, reduce dependence on foreign oil, and for other purposes.

H.R. 5642 – Safe Climate Act of 2006

On June 20, Reps. Waxman (D-CA), Miller (D-CA), Markey (D-MA), Pallone (D-NJ), Sanders (I-VT), Eshoo D-CA), Hinchey (D-NY), Farr (D-CA), Doggett (D-TX), Blumenauer (D-OR), Capps (D-CA), Inslee (D-WA), Schakowsky (D-IL), Solis (D-CA), and Van Hollen (D-MD) introduced Safe Climate Act of 2006, a bill to reduce greenhouse gas emissions and protect the climate.

H.R. 5643 – Energy Technology Transfer Act

On June 20, Reps. Biggert (R-IL), Boehlert (R-NY), Hall (R-TX), and Gilchrest (R-MD) introduced Energy Technology Transfer Act, a bill to authorize the commercial application and transfer of technologies (including renewable energy) developed by the Department of Energy through a grant program, which will provide funds to cooperative extension, land-grant colleges and other institutions of higher education.

H.R. 5644 – Green Energy Act of 2006

On June 20, Reps. McCaul (R-TX), Mrs. Biggert (R-IL), Hall (R-TX), Ehlers (R-MI), and Inglis (R-SC) introduced Green Energy Act of 2006 a bill to authorize higher education curriculum development and graduate training in advanced energy and green building technologies.

H.R. 5650 – Renewable Fuels and Energy Independence Promotion Act of 2006

On June 20, Representatives Hulshof (R-MO), Pomeroy (D-ND), Nussle (R-IA), Peterson (D-MN), Shimkus (R-IL), Terry (R-NE), Boswell (D-IA), Osborne (R-NE), Emanuel (D-IL), Moran (R-KS), Salazar (D-CO), Moore (D-KS), Herseth (D-SD) introduced the Renewable Fuels and Energy Independence Promotion Act of 2006, a bill to make permanent the excise tax incentives for ethanol and biodiesel used as a fuel.

H.R. 5653 – Investment on Energy Independence Act of 2006

On June 20, Rep. Lewis (R-KY) introduced the Investment on Energy Independence Act of 2006, a bill to promote investment in energy independence through coal-to-liquid technology, biomass, and oil shale. The bill includes provisions to allow a tax credit for investment in coal-to-liquid fuels projects; allow a taxpayer election to expense the cost of coal-to-liquid fuels process property and coal-fired facilities for the production of ethanol placed in service before 2016; extend the election to expense oil and alternative fuel refineries until 2016; include liquid fuel derived from oil shale extracted in the United States as an alternative fuel for excise tax purposes; extend the excise tax credit for alternative fuels through FY2020; and allow a 50 percent tax credit for enhanced oil recovery projects using qualified carbon dioxide.

H. Res. 879 – Representatives Should use Alternative Fuel Vehicles

On June 20, Rep. Cleaver (D-MO) introduced a House Resolution expressing the sense of the House of Representatives that Members of the House of Representatives should use alternative fuel vehicles in their professional and personal lives.

S. 3553 – 10 by 10 Act

On June 21, Senators Grassley (R-IA), Johnson (D-SD), DeWine (R-OH), Hagel (R-NE), Thune (R-SD) introduced the 10 by 10 Act, a bill to amend the Clean Air Act to require all gasoline sold for use in motor vehicles to contain ten percent renewable fuel in the year 2010 and thereafter. The bill also requires that gasoline pumps must indicate the renewable fuel content of the gasoline dispensed by the pump.

S. 3554 – Alternative Diesel Standard Act of 2006

On June 21, Senators Obama (D-IL), Cochran (R-MS), Lugar (R-IN), and Carper (D-DE) introduced the Alternative Diesel Standard Act of 2006, a bill to establish an alternative diesel standard which would require two billion gallons of alternative diesel be blended with all diesel sold or introduced into commerce in the United States by 2015. Alternative diesel fuel includes animal fat, plant oil, recycled yellow grease, single-cell or microbial oil, thermal depolymerization; themochemical conversion, a coal-to-liquid process (including the Fischer-Tropsch process) that provides for sequestration of carbon emissions or a diesel-ethanol blend of not less than seven percent ethanol.

H.R. 5658 – Alternative Fuel and Ultra Low Sulfur Infrastructure and Additives Research and Development

On June 21, Rep. Gordon (D-TN) introduced a bill to facilitate the development of markets for alternative fuels and Ultra Low Sulfur Diesel fuel through research, development, and demonstration and data collection.

State Legislative Updates

Louisiana Moves Towards Increased In-State Ethanol and Biodiesel Use and Production

On June 12, Louisiana Governor Blano signed HB 685 into law. The bill mandates the sale of ethanol and biodiesel throughout the state and is expected, therefore, to encourage greater biofuel production and use in Louisiana . This will be accomplished by requiring ethanol fuel to make up two percent by volume of the gasoline sold. The same will be required of biodiesel replacing diesel fuel. This two percent substitution requirement for ethanol and biodiesel will occur six months after in-state production capacities reach 50 million and 10 million gallons, respectively.

HB 685 (now Act No. 313) also keeps possible, future biofuel changes in mind. It requires a two percent biofuel replacement for all motor fuel sold in-state. This requirement will be enacted once in-state capacity for producing the renewable fuel reaches 20 million gallons per year.

The diversification of transportation fuel to include biofuels will benefit many sectors. As Governor Blano said, "I'm looking for a benefit bonanza. Benefits for the farming community, the economy, the environment, and most importantly the consumer. Louisiana needs to keep its competitive edge in fueling the nation."

Sources: Governor Blanco Press Release and EERE Network News

E85 Now Legal for Retail Sale in Florida

The ethanol-gasoline blend E85 is now legal for retail sale in the State of Florida . Up until now strict fuel regulations had prohibited the sale of E85 to the public. Currently there are only two federal E85 sites in Florida , but more than 400,000 flex-fuel vehicles on the roads. Groups like the National Ethanol Vehicle Association (NEVC) and First Coast Biofuels plan to work with vendors to place E85 on the public market quickly.

To Find an E85 Fueling Station Near You LOOK HERE.

Source: National Ethanol Vehicle Coalition

Indiana First to Introduce New Biodiesel Blender Pump

Indiana has become the first state to open a “ Biofuels Island ” with a biodiesel blender pump. This Pro-American Biofuels Island uses only Illinois Basin crude and U.S. grown biofuels. The Hamilton County station offers ultra-low sulfur diesel, soy biodiesel, and E85 and E10 ethanol blends. Customers also can choose 5, 10, or 20 percent of soy biodiesel to blend into petroleum distillate at the new biodiesel blender pump.

The biodiesel blender pump, similar to creating mid-grade gasoline, pumps both B5 and B20 soy biodiesel as well as the combination of the two, which results in a B10 product. In order to accommodate the blender pump, the Biofuels Island installed three 12,000 gallon tanks. Two of the three tanks are used for the B5 and B20 soy biodiesels used in the blender. The third tank contains E85.

Source: Indiana Soybean Board

Ohio Increases Biofuel Use and Infrastructure

On July 6 Governor Bob Taft (R-OH) signed House Bill 245 which requires, through a variety of efforts, the increase of biofuel use and infrastructure in the State of Ohio . Some of these efforts include:

Doubling the use of E85 in the state fleet from 30,000 gallons to 60,000 gallons annually by January 1, 2007 and, after 2007, increasing use by 5,000 gallons each subsequent year.
Increasing state fleet biodiesel use by 100,000 gallons annually beginning in 2007.
Purchasing only flex-fuel cars for state use.
Investing $1 million in the Alternative Fuel Transportation Grant Program which will increase Ohio ’s biofuel infrastructure as well as biofuel availability.

The bill signing accompanied the announcement of a partnership between General Motors and Kroger to increase consumer use and knowledge of flex-fuel cars and E85 locations.

On July 11 Ohio saw the groundbreaking of Coshocton Ethanol’s new ethanol production facility. The facility is expected to generate more than 40 jobs on-site and 60 million gallons of ethanol within the first three years of operation.

Sources: Governor Taft Press Release and Governor Taft Press Release, #2

10 Percent Ethanol in Fuel Required in Missouri

On July 5, Governor Matt Blunt (R-MO) signed the Missouri Renewable Fuel Standard Act into law. This legislation requires that most gasoline sold in Missouri be comprised of ten percent ethanol. Missouri currently has three operational ethanol plants, with a fourth under construction. The operating plants produce approximately 115 million gallons of ethanol annually which, along with completion of new plants, are expected to be able to meet demand from the new E10 requirement.

Although the E10 standard will bring many benefits to Missouri , the act includes some exemptions to the standard. First, the 10 percent rule is not required when ethanol is more expensive than gasoline. Secondly, premium grade fuels are also absolved of this standard.

Sources: EERE Network News and Governor Blunt Press Release

Portland , Oregon Sets Renewable Fuel Standard

On July 12 the Portland City Council approved a mandate for a fuel standard within the city. Starting on July 2007 stations are required to sell diesel with five percent biodiesel (B5) and gasoline with ten percent ethanol (E10).

Source: Koin News 6

Recent Studies

Researchers Confirm Net Energy Gain from Both Ethanol and Biodiesel

University of Minnesota researchers recently published a study, “Environmental, Economic, and Energetic Costs and Benefits of Biodiesel and Ethanol Biofuels,” in the Proceedings of the National Academy of Sciences which confirmed that both ethanol and biodiesel production result in positive net energy balances (NEBs).

The report concludes that although ethanol and biodiesel both have positive NEBs, the positive benefits from soy-based biodiesel when compared to petroleum diesel far outweigh those of corn-based ethanol when comparied with gasoline. While ethanol yields 25 percent more energy than the energy invested in its production, biodiesel yields 93percent more.

The researchers also advised that both these biofuels would provide greater benefits if

· The biomass feedstocks were producible with low agricluture input

· The biomass feedstocks were producible on land with low agricultural value, and

· The biomass feedstocks required low-input energy to convert feedstocks to biofuel

Source:

http://www.renewableenergyaccess.com/rea/news/story;jsessionid=AE9F6BCC69DDD53EEFD7908E8BF8A4BF?id=45457

Hill, Jason et al. “Environmental, economic, and energetic costs and benefits of biodiesel and ethanol biofuels.” PNAS. 103.30 (2006): 11206-11210.

Study Examines the Economic Feasibility of Sugar Feedstock for Ethanol Production

The USDA recently published a study which investigates the economic feasibility of producing ethanol from sugar feedstocks within the United States in comparison with other grain feedstocks. Five different sugar feedstocks were examined: sugarcane juice, sugar beet juice, cane or beet molasses, raw sugar and refined sugar.

Of all the sugar feedstocks considered, only molasses proved to be economically feasible at an estimated cost of $1.27/gallon in comparison to $1.03 and $1.05/gallon for corn wet and dry milling respectively. Although molasses may be comparable to corn-based ethanol, the study questions the availability of a sufficient quantity of molasses in a given location to make the operation of an ethanol facility profitable. All the other sugar products considered were found to be more than double the cost of corn-based ethanol.

Source: http://www.eere.energy.gov/news/enn.cfm#id_10139

USDA. “The Economic Feasibility of Ethanol Production from Sugar in the United States .” July 2006.

Ultrasonic Waves Yield Ultra-Efficient Ethanol Production

Researchers at Iowa State University are conducting research to improve the efficiency of sugar removal from corn for ethanol production. By subjecting corn slurry to 20 kilohertz high-frequency sound waves, researchers have been able to increase the corn’s release rate of sugar by almost 30 percent. The 30 percent increase is in comparison to the conventional dry-milling process used to produce ethanol. This discovery has received a one-year provisional patent for immediate commercialization of the technology.

David Grewell, the project’s director, said "this seems to work very well. We're releasing more of the corn's stored energy in a shorter period of time with less energy consumption."

In the future, the researchers will quantify the amount of ethanol produced from ultrasonics treated corn slurry which will then be tested at a larger, pilot scale. The research team also plans to test if ultrasonics is able to release sugars from the more fibrous, cellulosic corn material.

Source: Iowa State University

Japanese Institute Creates Laboratory Scale Continuous Synthesis of Biodiesel from Woody Biomass

The National Institute of Advanced Industrial Science and Technology of Japan’s Biomass Technology Research Center has achieved at the laboratory scale the continuous synthesis of diesel fuel from woody biomass through gasification. The three process method differs from older conventional methods in that it does not require systems for cooling, heat recovery, or gas compression processes. The reduction in systems makes for a smaller overall machine. This increases the possibility of small and mobile diesel production plants which can be brought to the woody biomass instead of transporting the biomass to the plant. The change in process also reduces the machine’s power usage.

Sources: NIAIST of Japan and AIST

Department of Energy Releases Research Agenda for Advancing Cellulosic Ethanol

The DOE has released its new research agenda for the development of cellulosic ethanol into a viable replacement for gasoline. The scientific “roadmap” outlines necessary future research needed to overcome current obstacles in the production of cellulosic ethanol such as scale of production and how to maximize biomass feedstock productivity. The report also highlights recent advances in biotechnology which have made cellulosic ethanol production cost effective and the DOE’s hope to utilize this knowledge to establish a competitive cellulosic ethanol industry, especially in the transportation sector.

Under Secretary for Science, Raymond L. Orbach, said “cellulosic ethanol has the potential to be a major source for transportation fuel for America ’s energy future. Low production cost and high efficiency require transformational changes in processing cellulose to ethanol. DOE’s Genomics: GTL program is poised to help do just that.”

The DOE’s research agenda can be viewed here. The DOE’s Biomass Program can be viewed here.

Sources: DOE Press Release and EERE Network News

Bacteria’s Potential in Energy Production

At the 106^th meeting of American Society for Microbiology (ASM) in Orlando , researchers are presented data on the far-reaching potential of bacteria in the world of energy production. Derek Lovley, professor from the University of Massachusetts , presented work showing a tenfold increase in power output from microbial fuel cells after allowing bacteria to grow on biofilms on the electrodes of the fuel cell. Another application of bacteria presented was their potential to increase the output of existing oil wells. A team of researchers at the University of Oklahoma will show how detergent-producing microorganisms can recover entrapped oil from existing oil reservoirs. The team leader, Michael McInerney, reported a definite increase in production, but indicated that research is still being done on the economic feasibility of such a project. The bacterium Bacillus subtilis has also been successfully genetically engineered to directly ferment glucose sugar to ethanol with a high (86 percent) yield. This moves researchers one step closer to development of bacteria that can breakdown and ferment cellulose biomass directly to ethanol.

Sources: American Society for Microbiology and Renewable Energy Access

News Briefs

A Milestone in Ethanol Production

The ethanol industry reported that there are now 100 operating ethanol plants in the United States . An Iowa plant, of Frontier Ethanol, LLC, earned the distinction of the 100^th plant. It’s annual capacity is approximately 60 million barrels. The Renewable Fuels Association (RFA) noted that these 100 plants have a total production of more than 4.7 billion barrels of ethanol each year. An additional 2 billion barrels of production is expected with 33 new plants under construction and 8 undergoing expansion.

For more information visit: EERE News

BP to Launch Energy Biosciences Institute

BP announced their intention to invest $500 million over the next 10 years to establish a biosciences research laboratory attached to a major academic institution in the United States or United Kingdom . The new BP Energy Biosciences Institute (EBI) will be dedicated to energy technologies, specifically focusing on the development of new biofuels as well as increasing efficiency and flexibility of current technologies. The institute also will aim to develop species of plants which will produce higher yields of energy molecules and can be grown on land not suitable for food crops. BP is aiming to launch the EBI by the end of 2007.

BP also is working on other alternative fuel projects. BP launched its biofuels business which intends to offer E85 in the United States by the end of 2006. BP and Dupont also have announced their partnership and combined goal of developing advanced biofuels. The initial goal is to produce and improve butanol blends, which already have been shown to enhance fuel economy and the performance of preexisting ethanol blends. According to a June 21 article in Clean Edge News, this partnership is now able to deliver their first co-produced product to market. Biobutanol is expected to be introduced in the United Kingdom by 2007. Efforts which will make biobutanol production competitive with that of ethanol are currently underway.

Sources: BP Press Release and BP Press Release, #2 and EERE Network News and Clean Edge News

Wal-Mart Considers Selling E85 at Gas Stations

Wal-Mart is considering selling E85 at its gas stations as well as utilizing it for its own fleet. The E85 fuel blend is considered to be a key element in the strategy to grow the biofuels industry as well as reduce dependence on foreign oil.

The sale of E85 at Wal-Mart’s approximately 383 gas stations across the nation would add much needed infrastructure to the expanding alternative fuels industry. Currently E85 is sold at approximately 600, mainly privately-owned, stations. Wal-Mart’s decision to sell E85, therefore, would drastically increase the availability of this fuel, providing more incentive for producers and consumers to manufacture and buy, respectively, flex-fuel vehicles.

There are more than five million vehicles already on the road that can run on E85; however, with increased infrastructure development, car manufacturers say they will produce more models which can utilize these blends. Once more flex-fuel cars and E85 stations are available, consumers will no longer be restricted by the locations of gas stations.

Sources: Grist Magazine and Wall Street Journal and CBS News

Wood-Burning Power Plants on the Rise

Wood-burning power plants soon will be providing energy to electric companies in California , Minnesota , New Hampshire , and New York . These new wood-burning power plants will convert tree and other biomass waste, through a variety of processes, into electricity. This alternative energy option is expected to both reduce greenhouse gas emissions and divert waste from limited landfill space.

Wood-burning and biomass power plants can provide a significant quantity of energy for all regions of the country. In California , Bull Moose Energy LLC is planning to use wood-burning plants to sell 20 megawatts of biomass electricity. In Minnesota , two Laurentian Energy Authority plants are planning on selling 35 megawatts of biomass electricity. The New Hampshire project is replacing 50 megawatt coal-fired boilers with a wood-fired boiler (see Schiller Station story in BCO, edition 32). And, in New York 7 megawatts of biomass electricity are expected to be sold.

Sources: EERE Network News and SDG&E Press Release and Laidlaw Energy</