|
New
York
State
Biomass Initiatives
by
Stewart Hancock
While financial players on Wall
Street are looking for investment opportunities in renewable energy
industry,
New York
State
is ramping up the effort to make rural Upstate New York a leader in
the nation’s emerging “bio-economy”.
In his State-of-the-State (SoS) address and proposed budget, newly
elected Governor Eliot Spitzer placed a priority on renewable energy
and pledged to build on the bio-energy momentum developed during the
predecessor administration of George Pataki.
Heading the
Empire
State
’s renewable effort will be Lieutenant Governor David A. Paterson.
Before joining the Spitzer ticket last fall,
Paterson
was a member of the State Senate, representing much of
Manhattan
’s
Harlem
. Spitzer’s charge to his lieutenant was clearly articulated in
the SoS: “increase renewable energy production…so the state can
meet its goal of obtaining 25 percent of its energy needs from
renewable sources” by the year 2013.
Another important member of the Spitzer renewable team will be newly
appointed State Agriculture Commissioner Patrick Hooker. As head of
the New York Farm Bureau, Hooker spearheaded
Albany
efforts to boost the
Empire
State
’s bio-energy agenda.
Other key NYS renewable policy makers will include: Judith Enck,
Spitzer’s Deputy Secretary for the Environment; Alexander
“Pete” Grannis, the new head of the State Department of
Environmental Conservation (DEC); and Steve A. Mitnick, assistant
secretary for energy and telecommunications.
Enck served for eight years as Spitzer’s top environmental policy
advisor in the Attorney General’s office and is the former head of
Environmental Advocates of New York. As a 32-year member of the
State Assembly, Grannis played a key role in enactment of
legislation relating to brownfields, acid rain, clean air and water,
fluorocarbons and recycling. Mitnick was a senior energy policy
advisor at McKinsey & Company.
Policy-wise, Spitzer stepped up the NYS commitment to the Regional
Greenhouse Gas Initiative (RGGI) by announcing plans to create a
12-person “Climate Change Office” within the DEC. The Spitzer
Administration has said it also is looking to follow
California
’s lead by establishing aggressive targets for reduction of
vehicle carbon dioxide emissions.
In his proposed budget, the Governor continued support for the
commercialization of cellulosic biomass research, which got a
jump-start late last year when the announcement of $25 million in
state grants to help fund construction of
New York
’s first two cellulosic ethanol refineries.
One of the cellulosic biomass projects, led by Catalyst Renewables,
will use willow and northern hardwoods to produce ethanol at a
130,000 gallons per year (GYP) bio-refinery to be built adjacent to
the Catalyst wood-to-energy plant in Lyonsdale, north of
Utica
. Partners in the Catalyst effort include SUNY College of
Environmental Science and Forestry (ESF), O’Brien & Gere and
New Energy Capital.
The second project,
which will also use woody biomass as its primary feedstock, will be
a joint effort of Mascoma Corporation and Genencor. The 500,000 GPY
facility will be built at the Genencor enzyme plant in
Rochester
. Other partners in the Mascoma-Genencor project include Cornell and
Clarkson
Universities
, the Natural Resources Defense Council and Khosla Ventures.
In his proposed budget, Governor Spitzer also allocated funds for
biofuels production tax credits which allow ethanol and bio-diesel
producers to earn as much as $2.5 million a year in refundable state
tax credits.
The State Legislature is also looking to up the renewable ante with
proposals for tax credits and other incentives to encourage
New York
farmers to grow cellulosic “energy crops” like willow and
switchgrass. These measures would help to capitalize on cutting edge
cellulosic biomass research at Upstate NY universities such as
Cornell, SUNY ESF and Clarkson.
These new initiatives will build on a host of other recently adopted
state programs, including elimination of all state sales taxes on
renewable fuels and a $10 million appropriation to assist
privately-owned gas stations with installation of e-85 and
bio-diesel pumps.
New York
’s bio-energy momentum is expected to build through the balance of
2007 with a number of bio-refineries coming on line, including the
114 million GPY Northeast Biofuels ethanol plant now under
construction in a former brewery north of
Syracuse
.
Note:
Stewart Hancock
is a partner in Syracuse-based Hancock Public Affairs, which works
with a number of renewable energy clients including
Northeast Biofuels
.
The
Northeast Regional Biomass Program Encourages Bioheat
by Gretchen Reeser of
CONEG
Policy
Research
Center
The Northeast Regional Biomass Program (NRBP) believes that the
Northeast could displace five percent of its petroleum heating oil
with biodiesel in five years. This outcome, if achieved, could
displace over 300 million gallons of imported petroleum, reduce
greenhouse gases, and help to spur regional biodiesel production.
The
Northeast represents nearly 70 percent of the seven billion
gallon heating oil market in the
U.S.
and has an established heating oil marketing and delivery
infrastructure of nearly 7,000 heating oil dealers.
As a result, the Northeast is a logical market for a blend of
biodiesel and heating oil known as bioheat.
The blending of biodiesel with heating oil is a relatively new
concept and faces challenges in market acceptance and market
penetration. The
biodiesel industry, working in tandem with the oil heat industry,
has introduced the issue and educated
heating oil dealers about bioheat, and also developed
standards for blending, storing, and transporting the product.
They have jointly introduced bioheat as a way to make heating
oil “greener,” and at the same time become more energy
independent by displacing imported petroleum with domestically
produced biodiesel.
A number of heating oil dealers in the Northeast are blending
biodiesel in heating oil in percentages ranging from 1 to 20
percent, and scores of successful demonstrations have been done with
blends of biodiesel and heating oil.
In addition to research and demonstrations, several states
have policies to support bioheat.
These steps, while critically important, are not sufficient
on their own to result in region-wide adoption of bioheat, since the
current market is not yet adequate to stimulate widespread
investments in blending and storage facilities.
Greater consumer demand for bioheat in the Northeast is
needed. However,
consumers are unlikely to ask for bioheat unless they are educated
about the benefits of the product and are confident it is safe and
reliable.
The NRBP is beginning a consumer education and outreach project for
bioheat. The goal is to
have an effective message and outreach initiative to inform
consumers about bioheat.
Involvement of both the oil heating and the biodiesel
industry in the development of the consumer outreach will help
ensure accurate, credible and effective information is reaching the
consumer.
The NRBP is also undertaking a project to anticipate and address
potential state and local laws, regulations and policies that could
impede the switch to bioheat. Certain
state laws, such as fire codes or transportation regulations may
need to be reviewed to accommodate for the use of biodiesel. For
example, a state law that currently prohibits licensed oil burner
technicians from working on any heating system not operating on
standardized heating oil would preclude the use of bioheat, due to
the technical definitions of heating oil.
Congressional
Hearing Start on the Farm Bill
The
Farm Security and Rural Investment Act of 2002 (P.L. 107-171), known
as the 2002 Farm Bill, is up for reauthorization in 2007. Both
Senate and House Agriculture Committee’s have now held hearings
reviewing the President’s proposed Farm Bill. Furthermore, during
the Senate Energy and Natural Resources one day conference
investigating biofuels, the Farm Bill came up several times as a
vehicle for the introduction of new biofuels legislation. This year
will be critical in the development of the Farm Bill and other new
legislation on renewable energy, stay informed on this legislation
by checking out Congressional hearings found at the following links.
http://agriculture.senate.gov/
http://agriculture.house.gov/index.shtml
http://www.senate.gov/pagelayout/committees/b_three_sections_with_teasers/committee_hearings.htm
Ethical,
Legal, and Societal Implications (ELSI) of Research on Alternative
Bioenergy Technologies, Synthetic Genomics, or Nanotechnologies
The U.S. Department of Energy requests proposals for Ethical, Legal,
and Societal Implications of Research on Alternative Bioenergy
Technologies, Synthetic Genomics, or Nanotechnologies. Areas
of interest include, but are not limited to: Impacts from
changing land use patterns; the use of "dual-use" crops
(food vs. energy); and implications resulting from the exploration
and exploitation of microbes and microbial capabilities which would
result from a large biomass-to-biofuels effort. $1 million
expected to be available, 5-9 awards are anticipated.
Final proposals due
April, 19, 2007
. For more info, contact Deborah Greenawalt at Deb.Greenawalt@science.doe.gov
or go to:
https://e-center.doe.gov/iips/faopor.nsf/UNID/EF92FB6885706B4B8525724A0050672C
Changes Made
to Sec. 9006 Guaranteed Loan Program
The
Rural Development Agency changed the renewal fee rate for the
Renewable Energy and Energy Efficiency Improvements (Sec. 9006)
Guaranteed Loan Program. The new renewal fee rate is now set at one
eighth of one percent.
Source:
http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/E7-504.htm
House
of Representatives Rolls Back $14 Billion in Subsidies for Big Oil
Nearly two-thirds of the House of
Representatives voted in favor of the Creating Long-Term Energy
Alternatives for the Nation (CLEAN) Act (HR 6). Passed on January
18, it was the last piece of legislation up for vote during the
first hundred hours of the 110th Congress. The Act will
transfer around $14 billion out of large oil company subsidies and
tax breaks to a ‘clean energy fund’ to help fund renewable
energy and promote energy efficiency.
House Speaker,
Nancy
Pelosi, strongly supported the decision saying, "Today's vote
represents the first step toward a future of energy independence. By
rolling back $14 billion in subsidies for Big Oil at a time when
they have recorded record profits, and investing that money in clean
renewable energy, energy efficiency and alternative fuels, we will
reduce our dependence on foreign oil.
"By investing in
American ingenuity, Democrats will accelerate the implementation of
existing clean, energy-efficient technologies. We will promote
homegrown alternatives, creating good-paying jobs while bolstering
our national security, sending our energy dollars to the Midwest,
not the
Middle East
."
The money is expected
to help promote power generation from wind and solar, as well as
create incentives for hybrid vehicles and energy-efficient buildings
and equipment.
Source: http://www.allheadlinenews.com/articles/7006189616
and http://www.renewableenergyaccess.com/rea/news/story?id=47171
New Fe
deral Legislation
In recent months a number of new
bills were introduced to combat high energy costs. These
bills include provisions to increase biofuels production, require
the production of flex-fuel vehicles, extends 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/
S.6 – National
Energy and Environmental Security Act of 2007
On
January 4, Senators Reid (D-NV), Bingaman (D-NM), Boxer (D-CA),
Schumer (D-NY), Lieberman (D-CT), Cantwell (D-WA), Leahy (D-VT),
Lautenberg (D-NJ), Stabenow (D-MI), Salazar (D-CO), Menendez (D-NJ),
and Webb (D-VA) introduced the National Energy and Environmental
Security Act of 2007. S.
6 is a “Sense of Congress” bill which seeks to decrease
United States
dependence on foreign oil as well as to find sustainable energy
sources to reduce global warming by calling for Congress to pass
legislation that would require reductions in GHG, eliminate tax
giveaways to large energy companies, etc. The
bill has been referred to the Senate Committee on Finance. Other
cosponsors include Senators Akaka (D-HI) and Brown (D-OH).
H.R. 6
– CLEAN Energy Act of 2007
On January 12, Rep. Rahall (D-WV) along with
198 other Representatives introduced the Creating Long-Term Energy
Alternatives for the Nation Act of 2007 or CLEAN Energy Act of 2007
to reduce our Nation's dependency on foreign oil by investing in
clean, renewable, and alternative energy resources, promoting new
emerging energy technologies, developing greater efficiency, and
creating a Strategic Energy Efficiency and Renewables Reserve to
invest in alternative energy. For
more information on this Act see “House of Representatives Rolls
Back $14 Billion in Subsidies for Big Oil” in this issue of BCO.
S.23/H.R.559 –
Biofuels Security Act of 2007
On
January 4th, 2007
Senators Harkin (D-IA), Lugar (R-IN), Dorgan (D-ND), and
Obama (D-IL) introduced the Biofuels Security Act of 2007 to
decrease American dependence on foreign oil through increasing
national use of renewable fuels. The bill requires that by 2017 all
vehicles have flexible fuel engines and half of all gas stations
dispense E85. New targets are also set for the amount of renewable
fuels used, with a goal of 30 billion gallons by 2020 and 60 billion
gallons by 2030. The bill was later introduced in the House by
Representatives Delahunt (D-MA), Herseth (D-SD) and Inslee (D-WA) as
H.R.559 on
January 18, 2007
.
S.133 – American Fuels Act of 2007
On January 4, Senators Obama (D-IL), Lugar (R-IN), and Harkin
(D-IA) introduced the American Fuels Act of 2007 to reduce
United States
dependence on foreign oil, thereby increasing national security and
improving the economy. The bill sets various goals for alternative
fuel production within the next ten years, particularly for
cellulosic ethanol. The
bill also provides for a 2 billion gallon carve-out for alternative
diesel fuel; tax incentives for FFV manufacturing; a 35 cent per
gallon tax credit for E85 fuel; and public access to government
alternative fueling stations.
S.146 – Government Fleet Fuel Economy Act of 2007
On January 4, Senator Boxer (D-CA)
introduced the Government Fleet Fuel Economy Act of 2007 to set new
fuel efficiency requirements for federal automobiles.
S.162 – National
Fuels Initiative Act of 2007
On January 4, Senator Lugar (R-IN) introduced the National Fuels
Initiative to change the alcohol and alternative fuels credits by
amending the Internal Revenue Code of 1986. National Fuels
Initiative promotes diversifying
US
transportation fuel and keeping alternative fuels competitive with
oil prices. Besides this, the bill seeks to increase infrastructure
for alternative fuels by promoting the installation of E85 fuel
pumps and encouraging the manufacture of Flexible Fuel Vehicles (FFVs).
The bill also incorporates parts of Senators Lugar and Obama’s
(D-IL) previously introduced Fuel Economy Reform Act calling for a 4
percent increase in Corporate Average Fuel Economy standards.
S.167/H.R.395 –
Cellulosic Ethanol Development and Implementation Act of 2007
On
January 4, Senator Boxer (D-CA) introduced the Cellulosic Ethanol
Development Implementation Act of 2007 which provides $1 billion for
cellulosic ethanol development over the next six years. The bill
also amends the Clean Air Act to provide $400 million annually for
fiscal years 2007 through 2010 for the cellulosic biomass ethanol
conversion assistance program. The House companion bill was
introduced by Rep. Salazar (D-CO) on January 10 as H.R.395.
Cosponsors include Representatives Bishop (D-NY), Hare (D-IL),
Marshall (D-GA), McIntyre (D-NC), Costa (D-CA), Jackson-Lee (D-TX),
McHugh (R-NY), and Scott (D-GA).
S.183 – Improved
Passenger Automobile Fuel Economy Act of 2007
On
January 4, Senator Stevens (R-AK) introduced the Improved Passenger
Automobile Fuel Economy Act of 2007 to increase the fuel economy
standard to 40 miles per gallon by 2017 using various methods
including market-based strategies. Senator Murkowski (R-AK) is a
cosponsor.
H.R.76 - To amend the Internal
Revenue Code of 1986 to increase the number of vehicles for which
the alternative motor vehicle credit is allowed.
On
January 4, Rep. Bartlett (R-MD) introduced bill H.R. 76 to extend
the alternative motor vehicle credit from 60,000 to 250,000
vehicles.
H.R.80 - To provide for Federal
research, development, demonstration, and commercial application
activities to enable the development of farms that are net producers
of both food and energy.
On
January 4, Rep. Bartlett (R-MD) introduced bill H.R.80 to reduce
energy input into agriculture production through research,
development, demonstration, and commercial application activities to
enable the development of farms that are net producers of both food
and energy. This act sets up revolving loans and loan
guarantees under DOE for the establishment of these farms or groups
of farms.
H.R.85 – Energy Technology Act of 2007
On January 4, Rep. Biggert (R-IL)
introduced the Energy Technology Act to provide for the
establishment and funding of centers to encourage information
exchange for advanced energy technologies.
H.R.86 – Oil and Gas-to-Alternatives Swap (OGAS) Act of 2007
On January 4, Representatives Bigger (R-IL), Ehlers (R-MI),
Johnson (R-IL) and Kirk (R-IL) introduced the Oil and
Gas-to-Alternatives Swap (OGAS) Act of 2007 to extend the incentives
for alternative fuel vehicles and fueling stations as well as to
remove the oil and gas production incentives from the Energy Policy
Act of 2005. Rep. LoBiondo (R-NJ) is an additional cosponsor.
H.R.196 –
Renewable Fuels and Energy
Independence
Promotion Act of 2007
On
January 4, Representatives Pomeroy (D-ND) and Hulshof (R-MO)
introduced the Renewable Fuels and Energy Independence Promotion Act
of 2007 to make the excise tax credits for alcohol fuels and
biodiesel permanent. The bill would also amend the Harmonized Tariff
Schedule of the
United States
to make the effective date of the ethyl alcohol and ethanol tariff
duties that of the effective date of the Act. Additional cosponsors
include Representatives Herseth (D-SD), Lewis (R-KY), Peterson
(D-MN), Salazar (D-CO), Moore (D-KS), Ross (D-AR) and Shimkus
(R-IL).
H.R.197 – To
amend the Internal Revenue Code of 1986 to provide a 5-year
extension of the credit for electricity produced from certain
renewable resources.
On
January 4, Representatives Pomeroy (D-ND), Ramstad (R-MN), Udall
(D-CO) and Wamp (R-TN) introduced H.R.197 to extend the Renewable
Energy Production Tax Credit from 2009 to 2014. There are currently
50 cosponsors.
H.R.349 – 10 by 10
Act
On
January 9, Representative Kline (R-MN) introduced the 10 by 10 Act,
which would amend the Clean Air Act to require that all gasoline
contain a 10 percent blend of renewable fuel by the year 2010.
S.298 - Renewable Energy, Fuel Reduction, and Economic Stabilization
and Enhancement Act of 2007 (REFRESH)
On
January 12, Senators Murkowski (R-AK) and Stevens (R-AK) introduced
the Renewable Energy, Fuel Reduction, and Economic Stabilization and
Enhancement Act of 2007 (REFRESH) to provide renewable energy
incentives for geothermal power, ocean energy and plug-in hybrid
electric vehicles. It also expands the Production Tax Credit to
include Wave, Current, Tidal, and Ocean Thermal Energy. The
bill also seeks to adjust fuel efficiency standards.
S.309 – Global Warming Pollution Reduction Act
On January 16, Senators Sanders (I-VT), Boxer (D-CA), Kennedy
(D-MA), Menendez (D-NJ), Lautenberg (D-NJ), Leahy (D-VT), Reed
(D-RI), Akaka (D-HI), Inouye (D-HI), Feingold (D-WI), and Whitehouse
(D-RI) introduced the Global Warming Pollution Reduction Act in
order to amend the Clean Air Act to further reduce carbon dioxide
emissions. Directs the Environmental Protection Agency (EPA) to: (1)
set milestones to reduce the aggregate net levels of emissions
(authorizes EPA to establish market-based programs to achieve such
reductions); (2) require each fleet of automobiles sold by a
manufacturer beginning in model year 2016 to meet emission
standards; (3) contract with the National Academy of Sciences to
study the potential contribution of the non-highway portion of the
transportation sector towards meeting the emission reduction goal;
(4) require that electric generation units meet an emission standard
that is not higher than the emission rate of a new combined cycle
natural gas generating unit; and (5) establish a low-carbon
generation trading program. Senator Dodd (D-CT) is also a cosponsor.
S.317 – Electric Utility Cap and Trade Act of 2007
On January 17, Senators Feinstein (D-CA) and Carper (D-DE)
introduced the Electric Utility Cap and Trade Act of 2007 to create
a regulatory program for the emission of greenhouse gasses by
electric utilities. According to the floor statement of Senator
Feinstein the bill is currently supported by six major energy
companies whose total energy production equals 150,000 megawatts.
H.R.517 –
Independence
from Oil with Agriculture Act of 2007
On
January 17, Rep. Davis (R-VA) introduced the
Independence
from Oil with Agriculture Act of 2007 to amend the Internal Revenue
Code to make certain renewable fuel tax credits permanent, such as
alcohol fuels or mixtures, biodiesel fuels or mixtures and wind and
biomass in the Production Tax Credit. The bill also seeks to amend
the Clean Air Act to increase the required amount of renewable fuel
for the years 2008-2012 to 12 billion gallons by 2012, and to
calculate required levels of renewable fuel for 2013 onwards based
on those levels.
H.R.547 – Advanced Fuels Infrastructure Research and Development Act
On January 18, Rep. Gordon (D-TN) introduced the Advanced Fuels
Infrastructure and Development Act to assist in developing markets
for alternative fuels through increased infrastructure as well as to
enforce and promote the use of Ultra-Low Sulfur Diesel. The House
passed this bill, 400 – 3, on February 8.
H.R.589 – Get Real
Incentives to Drive Plug-in Act
On
January 19, Representatives Inslee (D-WA), Delahunt (D-MA), Hall
(R-TX), Cleaver (D-MO), Honda (D-CA), Kaptur (D-OH), Hinchey (D-NY),
Gilchrest (R-MD), Klein (D-FL) and Grijalva (D-AZ) introduced the
Get Real Incentives to Drive Plug-in Act to promote the use and
development of plug-in hybrid electric vehicles through authorizing
$500 million over the next four years. Additional cosponsors include
Representatives Dogget (D-TX), Lantos (D-CA), Schiff (D-CA), Renzi
(R-AZ), and Serrano (D-NY).
S.357 Ten-in-Ten Fuel Economy Act
On January 22, 2007 Senators Feinstein (D-CA), Snowe (R-ME),
Inouye (D-HI), Durbin (D-IL), Kerry (D-MA), Boxer (D-CA), Nelson
(D-FL), Cantwell (D-WA), Lautenberg (D-NJ), Lieberman (D-CT),
Menendez (D-NJ) and Collins (R-ME) introduced the Ten-in-Ten Fuel
Economy Act to reduce greenhouse gas emissions and dependence on
foreign oil by increasing fuel economy standards and measures.
Cosponsors include Senators Leahy (D-VT), Reed (D-RI), Dodd (D-CT),
and Sanders (I-VT).
H.R.604 – E-85 Investment Act of 2007
On January 22, Rep. Hayes (R-NC) introduced the E-85 Investment
Act of 2007 to increase the rate of such credit for property to 75
percent; to reduce the maximum dollar amount of such credit in 2013
and 2014 for ethanol-related refueling property; and to extend such
credit through 2016 for ethanol-related refueling property.
H.R.620 – Climate Stewardship Act of 2007
On January 22, 2007 Representatives Olver (D-MA), Gilchrest
(R-MD), Inslee (D-WA), Walsh (R-NY), Cummings (D-MD), Kirk (R-IL),
Solis (D-CA), Castle (R-DE), Hinchey (D-NY), Shays (R-CT), Harman
(D-CA), Saxton (R-NJ), Dicks (D-WA), McCollum (D-MN), DeGette
(D-CO), Thompson (D-CA), Cardoza (D-CA) and Hare (D-IL) introduced
the Climate Stewardship Act of 2007 to accelerate the reduction of
greenhouse gas (GHG) emissions by creating a market-driven system of
tradable GHG allowances. H.R.620 has 69 cosponsors.
Gov.
Schwarzenegger Proposes
California
Low Carbon Fuel Standard
On January 9, Governor Schwarzenegger announced a Low Carbon Fuel
Standard (LCFS) for
California
. The standard expects to yield a 10 percent decrease in carbon
emissions from transportation fuels by 2020. Pacific Gas and
Electric was in favor of the proposal, saying “PG&E applauds
the Governor's new Low Carbon Fuel Standard and his bold leadership
in addressing alternative fuels as a way to lead the nation to a
climate friendly future. We are committed to doing our part and have
seen first hand the significant benefits of alternative fuels on
reducing carbon intensity.” The LCFS promotes the use of ethanol
and hybrid vehicles as two currently developed means of attaining
this goal, but leaves the strategy decisions to industry. The
University
of
California
estimates that the CA emissions goals can increase Gross State
Product by about $60 billion and create over 20,000 new jobs.
Sources: http://gov.ca.gov/index.php?/press-release/5074/
and http://biz.yahoo.com/prnews/070109/sftu124.html?.v=61
New
York
Power Authority Tests Biofu
el at Facility
The New York Power Authority (NYPA) conducted a two-day test in late
October, 2006 to see the effects of a varying blend of conventional
heating fuel mixed with soybean biofuel (5-20 percent) in the
production of electricity. The
study was conducted in
Queens
at the Charles Poletti Power Project by the Power Authority and
Electric Power Research Institute (EPRI). Initial results showed
increased efficiency and lower emissions. NYPA
President Timothy Carey said, “The Biofuel testing at our Poletti
project in
Queens
is a pioneering development with great potential significance for
the electric power industry, energy security and the environment. To
the best of our knowledge, it is the first application at a large
power plant, and the largest use of biofuels on any single occasion
in the
US
.”
Source: http://www.electricnet.com/content/news/article.asp?DocID=%7BE8A23C71-3B0B-4145-A2B6-52E1DADE3C74%7D&Bucket=Current+Headlines&VNETCOOKIE=NO
Indiana
Governor Happy with Biofuel
Development
Indiana Governor Mitch Daniels’ “State of the State” address
on
January 16, 2007
had positive things to say regarding
Indiana
’s growing ethanol industry. “With our new tax credit program
plus a lot of hustle, we have gone from nowhere to national
leadership in the promising sector of renewable fuels. In just 18
months, we have grown from one ethanol plant producing 100 million
gallons per year to 21 biofuels plants soon to generate 1.7 billion
gallons annually,” said Daniels.
Though no new renewable fuel targets were given during the address,
Lt. Governor Becky Skillman later said that cellulosic ethanol may
be a future focal point for research and development as well as
General Assembly legislation.
Source: http://www.in.gov/gov/
NBB
and NREL Study Found 1/3 of
U.S.
Biodiesel Samples Out-of-Spec
The National Biodiesel Board (NBB) and the National Renewable Energy
Laboratory (NREL) co-funded a national fuel quality project that
found that 33 percent of biodiesel samples taken between November
2005 and July of 2006 were out of spec for incomplete processing.
“NBB views these results as unacceptable,” Jobe, CEO of NBB,
said. “This underscores the need for enforcement agencies to take
action against those who aren’t producing biodiesel that meets the
existing standard, ASTM D-6751.”
The NBB board approved a comprehensive Fuel Quality Policy in June
2006 where by NBB will work with state and federal agencies to
regulate fuel and enforce quality. “All of the samples from the
state’s biodiesel producers and terminals that we have collected
and tested have met specifications,” stated Mark Buccelli,
director of Minnesota Department of Commerce Division of Weights and
Measures. “We have set up a monthly schedule to collect samples at
the biodiesel producers and terminals. We expect to see good
results. Most of the terminals are testing every shipment of
biodiesel that comes into their facilities.”
Source: http://oilspot2.dtnenergy.com/e_article000692547.cfm
Mixed Native
Grasses a Good Source of Biofuel
A recent study by the
University
of
Minnesota
published in the journal Science shows that biofuel made from
mixed native prairie grass could provide more energy than ethanol
from corn or a single grass species such as a switchgrass
monoculture.
The research found that areas with a diverse species of grasses are
not only more productive in terms of biomass, but can also help
remove carbon dioxide from the atmosphere. “This is what really
surprised us,” said Dr. David Tilman, a professor at the
University
of
Minnesota
who conducted the study. “There is more carbon stored year after
year in the soil than the total amount of fossil carbon that is
produced into the atmosphere.” An acre of prairie grass grown for
several years removes around 1,750 pounds of carbon dioxide from the
atmosphere while releasing only 400 pounds of carbon dioxide through
planting, harvesting and transportation.
For the moment some obstacles remain. Tilman said one problem is
that transporting the grass more than 50 miles for processing would
not be practical. Lastly, Dr. Burton English of the
University
of
Tennessee
said current biorefinery methods may also be a drawback. “It
depends on the conversion technology,”
Burton
said. “If you’re doing a fermentation system, then you may have
some difficulties. You may have a less efficient plant when you take
multiple feedstocks versus a single monoculture feedstock.”
Sources: http://www.argusleader.com/apps/pbcs.dll/article?AID=/20070101/NEWS02/701010311/1001/NEWS
Tilman, David; Hill, Jason; Lehman, Clarence.
“Carbon-Negative Biofuels from Low-Input High-Diversity Grassland
Biomass.” Science. V.314, p.1598-1600.
8 Dec 2006
.
Governor’s
Ethanol Coalition Publishes Two Reports
The Governor’s Ethanol Coalition (GEC) published two reports in
December. The first was
a study from the
University
of
Tennessee
commissioned by GEC to analyze the possible future economic and
environmental effects of attaining 60 billion gallons of ethanol by
2030. Titled Economic and Agricultural Impacts of Ethanol and
Biodiesel Expansion, the study found that not only is the
concept feasible, but biofuels have the potential to create $368
billion of economic activity annually by 2030, and they could have a
smaller impact on the livestock industry than formerly anticipated.
Based on these findings, GEC issued their own suggestions called Ethanol
From Biomass: How to Get to a Biofuels Future – Recommendations.
Some of the key ideas include moving forward an ethanol consumption
target of 12 billion gallons to 2010, creating a schedule for
expanding ethanol infrastructure, and also changing the Volumetric
Ethanol Excise Tax Credit (VEETC) a Cellulosic Ethanol Production
Tax Credit valued 1.5 times higher.
Sources:
http://www.ethanol-gec.org/information/biomasstoethanol2006.htm
http://www.ethanol-gec.org/information/Ethanolfrombiomass12-2006.pdf
http://www.ethanol-gec.org/information/Ethanolagimpacts.pdf
BIO
Releases Report to Support Biofuel Industry
On November 21, 2006, the Biotechnology
Industry Organization (BIO) released a report, Achieving Sustainable
Production of Agricultural Biomass for Biorefinery Feedstock. The
report primarily deals with the question “Can American farmers
feed the growing biofuel industry?” The report offers guidelines
and incentives to encourage farmers to produce and bring more
feedstocks to biorefineries in an economically and environmentally
sustainable way.
James Hettenhaus, the author of the report,
said, “For the biofuel industry to expand, biorefinery operators
must be confident that the supply chain for cellulosic feedstocks is
robust, and farmers must be assured that they will benefit by
adopting sustainable harvesting practices. As the biorefinery
industry creates markets for crop residues, farmers will be more
motivated to adopt practices that allow them to collect these
residues while maintaining soil quality and controlling erosion.
Recent successes have spurred an increase in adoption of no-till
cultivation, but improved information is needed to convince farmers
of the benefits.”
Source: http://www.bio.org/news/newsitem.asp?id=2006_1121_01
Case IH to Support Biodiesel
On
November 16, 2006
, Case IH announced its support for B20 in most Case IH engines and
B5 in all Case IH engines. Moreover, Case IH uses biodiesel blends
for its factory fills.
“One hundred percent factory fill of a biodiesel blend is a
logical next step in the process of embracing biodiesel,” said
Randy Baker, president of Case IH in
North America
. “Adding to demand for soybeans while producing the crop is the
type of strategy our customers like to pursue.”
Baker goes on to say, “As long as engine maintenance
procedures are followed, and in-spec blends are purchased from a
reputable supplier, biodiesel blends from B5 through B20 can be used
in any Case IH engine in operation today. “In addition, Case IH
and our engine partner companies are continuously testing new and
higher biodiesel blends and engine configurations to provide our
customers with the most up to date information.”
B5 is supported by all major original equipment manufacturers
(OEMs), provided it is made with biodiesel meeting ASTM D 6751. Many
OEMs are recommending the use of BQ-9000 companies. BQ-9000 is the
industry’s biodiesel fuel quality program.
Source: http://nbb.grassroots.com/07Releases/CaseIH/
First
Distribution
Center
for Biofuels to be Built in Manly,
Iowa
The first biofuels trading and distribution
center, Manly Terminal LLC, in Manly,
Iowa
will start servicing the regional ethanol market in April 2007.
Plans for construction of the facility were announced last July. The
100-acre facility will have more than 20 million gallons of liquid
storage capacity. The location of the facility is very convenient --
very close to U.S. Highway 65 and Iowa Highway 9 and is eight miles
from Interstate 35 and 15 miles from Interstate 90. Moreover, there
are about 14 plants within a hundred miles of the proposed facility,
with more than 75 plants in operation within 275 miles, representing
5.1 billion gallons or half of the estimated nationwide production
capacity by 2009. Manly Terminal LLC will provide a common delivery
point for ethanol trading and truck and railroad distribution
throughout
North America
.
“This facility will allow our area ethanol
plants and other biofuel producers to better broker and transport
their product while bringing strong development, commerce, and jobs
to northern
Iowa
and southern
Minnesota
,” said Lee Kiewiet, president of Manly Terminal. “We’re
excited to see this project move forward and very pleased that
we’ve found such a perfect home in Manly and northern
Iowa
. We hope this will also serve as a catalyst to the area’s
economy, and we foresee hundreds of new biofuels industry and
transportation jobs created, both directly and indirectly with Manly
Terminal.”
Source:
http://www.albertleatribune.com/articles/2006/11/28/news/news4.txt
LLC
Announces Innovation in Production of 1,3 Propanediol
On
November 27, 2006
, DuPont Tate & Lyle BioProducts, LLC, announced it has become
the first manufacturer of 1, 3 propanediol as a bio-based product.
The production takes place at its $100 million facility in
Loudon
,
Tennessee
by using an innovative proprietary fermentation and purification
process. 1,3 propanediol is made from corn sugar and will used
to replace glycol, a petroleum-based product, in various polymer
materials. Moreover, 1,3 propanediol is a major ingredient in a
great number of household and personal care products such as
cosmetics and detergents.
Source: http://onlinepressroom.net/DuPont/NewsReleases/
Vermont
Electric Cooperative Farm
Joins CVPS Cow Power
A farm outside Central Vermont Public Service’s territory has
joined the CVPS Cow Power program, the nation’s first
farm-to-customer renewable energy choice program. The
Richmond
farm, Vermont Electric Cooperative (VEC), is going to be the first
non-CV farm that has a contract with the CVPS Cow Power program.
According to David Hallquist, VEC Chief Executive Officer, this
joint arrangement will be beneficial to all of VEC’s members and
the environment.
CVPS is the first manure-based renewable energy program in the
country that brings together consumers and farmers. CVPS customers
can choose between receiving all, half or a quarter of their
electrical energy through Cow Power. All VEC members receive the
market price for the energy sold to VEC, which is mutually
beneficial to both VEC’s members and the environment.
Source: http://www.econline.com/content/news/article.asp?DocID={D693E10A-75DA-4F3C-8B5A-792AF6F78AB4}&Bucket=&Featured=&VNETCOOKIE=NO
Syngenta
and Diversa: New Partners in Enzyme Research
On January 8 Syngenta and Diversa,
two leading
research and development firms, revealed plans to team their
research in a quest for more economical conversion of cellulosic
biomass to sugar, a fundamental part of creating biofuel through
fermentation.
The pairing of the two brings Swiss-based Syngenta’s established,
agri-business innovation together with
San Diego
’s Diversa and its cutting edge enzyme technology.
David Jones, an executive at Syngenta, said “We are pleased to
have reached this agreement with Diversa. Diversa has the best
inventive capability for truly novel enzymes, and Syngenta has
demonstrated its ability to express enzymes cost-effectively in
plants.”
Edward Shonsey, Diversa’s Chief Executive Officer, also expressed
his approval. “We are pleased with the refocus of our
collaboration with Syngenta, a world leading agri-business. This
agreement creates a highly-focused collaboration to move further
into the Biofuel market through plant expression in a complementary
manner. In addition, this agreement frees Diversa to pursue
attractive opportunities for integrated commercialization of
biofuels, particularly from celluslosic biomass. We look forward to
sharing further news of our independent initiatives in this area in
the near future.”
Sources: http://www.renewableenergyaccess.com/rea/news/story?id=47065
http://www.seedquest.com/News/releases/2007/january/18020.htm
Winter Wood Pellet Shortage
Wood pellets are an increasingly popular fuel for heating homes. Low
maintenance, coupled with low prices in the past, have contributed
to its growing demand. This year signals a change as customers in
Reno
and
Northern California
face long waits and rising prices. Producers in the industry blame
the shortage on a lack of sawdust created by the slump in new home
building. Increased demand for wood pellet stoves due to high
conventional energy costs is also deemed a factor in the shortage.
Sources: http://news.rgj.com/apps/pbcs.dll/article?AID=2007701100429
http://www.kolotv.com/home/headlines/5123836.html
BioKing
Announces New Canadian Biodiesel Equipment Plant
The Dutch company BioKing announced its intentions to build a
high-quality biodiesel equipment manufacturing plant in
Lethbridge
,
Canada
. BioKing owns and operates one production facility in the
Netherlands
, but growing US, Canadian and Asian demand has inspired this latest
venture. The plant is expected to produce 20 to 25 biodiesel
processing units per week and employ 50 workers.
BioKing President and CEO Van de Ven said, “Biodiesel is a major
growth area for us, and we are aiming to become the world's leading
biodiesel equipment manufacturer. When we talk about aiming to be
the leader in the field, we're not just talking about production
volumes, but also about being the technology leader as well. We aim
to secure this position by investing heavily in R&D on biofuels
to develop technologies that will enable us to further extend the
range of raw materials that we can use.”
Source: http://www.themanufacturer.com/us/detail.html?contents_id=5027
Emerald
Renewable Energy to Create New
US
Ethanol Plants
Emerald Renewable Energy LLC, a Cargill subsidiary, plans to
construct four new corn ethanol plants in the
Midwest
. The new plants will each use an estimated 40 million bushels of
corn to produce 100 million gallons of ethanol annually and over
300,000 tons of dried distillers grains for animal feed each year.
Greenfield
locations, as well as co-locations with Cargill grain elevators and
other utility infrastructure providers, are being considered for the
four new plants. The plants are expected to create about 40 jobs per
location.
“Emerald Renewable Energy will have access to Cargill’s
world-class expertise in trading, sourcing corn, plant construction
and operations, risk management and bulk commodity
transportation,” said Cargill Corporate Vice President Scott
Portnoy. Agreements with
a contractor have already been made and financing arrangements will
come from BNP Paribas, Santander Investment and Standard Chartered.
Source: http://www.cargill.com/news/news_releases/current_year.htm
University
of
Idaho
and Eco-Energy to Develop
New Oilseed
Eco-Energy, an international company based in Gibraltar, formally
joined forces with the
University
of
Idaho
in November, 2006. The partnership plans to provide $2 million over
five years to the University’s well-established plant breeding
program. The aim of this collaboration is to produce a new,
high-value, oilseed variety with the potential to grow in many
climates. The
University
of
Idaho
has had a long interest in biofuel with a nearly 30 year old
national biodiesel program still in operation.
One oilseed crop that is being researched by the University is
Pacific Gold, a spicy Oriental condiment mustard that is grown by
potato producers as a biofumigant by plowing green plants into the
soil to combat nematodes.
Source: http://www.aocs.org/news/story.asp?id=338
EERC to
Demonstrate Biomass Power Generator
The Energy and Environmental Research Center (EERC), part of the
University of North Dakota, plans to demonstrate a biomass
gasification power generator in the coming weeks at the Grand Forks
Truss Plant in
Grand Forks
,
North Dakota
. The process will use saw dust and wood waste to produce
combustible gas heat and electricity. The system is designed to work
with existing power requirements of various manufacturing
industries, generating between 10 kilowatts (kW) to 1 megawatt (MW)
of power.
Grand Forks Truss Plant operator Shaun Johnson said, "We are
very excited and proud to host a project involving renewable energy.
We have a vast supply of biomass waste and continue to produce more
than we can utilize in our current heating system."
Sources: http://www.renewableenergyaccess.com/rea/news/story?id=47025
http://www.eerc.und.nodak.edu/newsroom/newsitem.asp?id=277
Proposed Study for BioTown Sewage Digester
Officials in
BioTown
,
Indiana
, also known as Reynolds, cast votes of approval for a new
feasibility study of an anaerobic digester for sewage. Jon Borgers,
an engineer for Wessler and Associates who is working on the
project, said “For right now, we’re just going to be getting
into the basics of what the wastewater treatment plant is going to
be, figuring out what sizes we’re talking about.” Neighboring
towns are already looking into the possibilities of shipping their
raw sewage for treatment. The proposed plan would run the digester
from the heat produced by the gasifier and ultimately create an
energy production system.
Sources: http://www.thehj.com/main.asp?SectionID=9&SubSectionID=32&ArticleID=19217&TM=21919.39
http://www.thehj.com/main.asp?SectionID=9&SubSectionID=32&ArticleID=19282&TM=22302.37
Montana
High School
to Use Biomass Heating
| 
