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Biofuel Industry Creates Opportunities From Coast to Coast Thanks to Diverse Feedstocks

Although corn and soy are the predominate feedstocks of the current U.S. biofuel industry – both crops primarily grown in the Midwest – the transition from foreign oil to domestic biobased transportation fuels spells unique opportunities for rural areas outside the Midwest as well.  Extensive research, development and commercialization efforts are currently underway for a wide variety of feedstocks, from citrus waste and forest thinnings to jatropha and algae, allowing every region of the country to reap the benefits of their own home-grown and ecologically appropriate biofuel feedstocks.

Cellulose is the next generation of ethanol feedstock, netting more energy per acre of crop and emitting fewer greenhouse gases per unit of energy than corn starch.  Cellulosic ethanol can be made from any plant material, creating a new market for non-food crops as well as the “waste” from food crops and forests.  Many strides have been made in recent months to bring cellulosic ethanol to market; pending federal legislation such as the Senate-passed Energy Bill could accelerate this process even further by including minimum production requirements for the advanced biofuel in a new Renewable Fuel Standard.

Switchgrass has received much attention as an efficient source of cellulose for energy.  Most recently, Massachusetts-based Mascoma Corporation and the University of Tennessee have partnered to build the first U.S. switchgrass-to-ethanol biorefinery, scheduled to begin operating in 2009.  Funding for the construction of the 5 million gallons per year plant and corresponding research and development activities, as well as incentives for farmers to grow switchgrass, are the result of Tennessee Governor Phil Bredesen’s Biofuel Initiative.  Research by the University’s Institute of Agriculture shows that Tennessee could produce over 1 billion gallons of switchgrass-based ethanol annually.  Switchgrass is native to all of the continental United States except the west coast, and requires less water and fertilizer than does corn.

Although alfalfa can only produce about one quarter the amount of cellulosic ethanol that corn can produce, it has some limited potential as a feedstock because of its environmental benefits and valuable co-products.  Rotating alfalfa with corn enriches the soil, reduces the need for insecticides and fertilizers, and increases the yield of subsequent corn crops.  In addition, alfalfa leaves have a high protein content, which can be separated from the cellulose and sold as cattle feed.  The National Alfalfa and Forage Alliance held a summit in Washington, D.C. in August to promote the benefits of using alfalfa as an ethanol feedstock.  Executive Director Beth Nelson pointed out that alfalfa has the advantage of an established, stable infrastructure across the entire country.

Citrus waste, in contrast to more widespread grasses and forbs, represents a smaller, more local source of biomass.  Bill Widmer, a research chemist with the Citrus and Subtropical Products Laboratory under the USDA’s Agricultural Research Center, estimates that the Florida orange juice industry’s 5 million tons of unused orange peels could provide up to 60 million gallons of cellulosic ethanol annually.  FPL Energy, LLC and Citrus Energy, LLC have teamed up to build a 4 million gallon per year (MGY) ethanol plant adjacent to a Florida citrus processor, eliminating transportation and storage costs.  Mike O’Sullivan, FPL Energy’s senior vice president of development, touted the benefits of producing ethanol from the local feedstock: “This exciting new project [will] produce a clean, affordable, and domestically-produced biofuel utilizing Florida’s existing citrus industry infrastructure and [bring] new jobs to rural communities.”  Citrus-to-ethanol refineries also have a valuable co-product - limestone.

Wood waste is another wide-spread ethanol feedstock entering the commercialization process, with the first wood-based ethanol blend going on sale this month in Japan.  Taking advantage of the abundant forest resource in this country, Range Fuels, Inc. is working to build a 40 million gallons per year wood-to-ethanol plant in Georgia and Mascoma Corporation is planning a similar facility in Michigan.  “There’s so much raw material in Georgia, it’s unbelievable,” said Range Fuels CEO Mitch Mandich, adding that other southeastern states could also integrate biorefineries with their established timber industry to take advantage of the ethanol boom. 

Thinning a forest of its small diameter trees, underbrush and other wood residues is critical in maintaining healthy forests and reducing fuel for wildfire.  But at a cost of nearly $600 per acre according to a 2003 University of Washington report, foresters often find the thinning process cost prohibitive.  The cellulosic ethanol industry can provide a market for this woody biomass, making forest restoration economically sustainable as well.

Post-consumer wood products can also be sourced as an ethanol feedstock. BlueFire Ethanol Fuels, Inc. announced on October 9 an agreement with the U.S. Department of Energy (DOE) to build a cellulosic ethanol plant in Southern California using wood waste and green waste that would otherwise go to the landfill.  The plant, which will receive a total of $40 million in grant money from the DOE, is scheduled to begin operating in 2010.  “The DOE funding will enable BlueFire Ethanol to build a facility that will convert post-sorted green waste and other cellulosic materials from the landfill into roughly 17 million gallons of fuel-grade ethanol per year,” said BlueFire Ethanol CEO Arnold Klann.  “The same process can be replicated at the majority of the nation’s 1600 landfill sites, increasing the essential production of biofuels, while simultaneously helping cities cope with increasing volumes of landfill waste.”

According to the National Biodiesel Board, 250 million gallons of biodiesel were sold in the United States last year.  The majority of the existing 165 biodiesel plants use soy as their feedstock, but the use of other feedstocks is expanding. 

Jatropha is a fast-growing, bushy plant that thrives in high temperatures with minimal nutrients and water.  In early October, the Hawaii County Economic Opportunity Council received a $677,000 federal grant to study the cloning and mass cultivation of jatropha seedlings for bio-diesel production.  "This grant will create jobs for about 70 people on the Big Island and provide needed information about the potential for jatropha cultivation as a bio-diesel resource," said Senator Daniel Akaka (D-HI).

Canola oil has been used to produce modest amounts of biodiesel for years, and its use as a feedstock is growing.  On October 10, an 85 MGY biodiesel production plant opened adjacent to a canola crushing facility in Velva, North Dakota.  The Archer Daniels Midland refinery will create 15 new jobs and provide a huge new market for local farmers, using the equivalent of the entire canola crop from the top 10 canola producing counties in the state.  On the west coast, Imperial Renewables began operation in Washington this August, tapping the nearby canola fields to produce 100 MGY of biodiesel.

Algae has shown great potential as a biodiesel feedstock, having the ability to grow in brackish water and yielding a very high percentage of oil, although commercial scale production has been cost prohibitive.  On October 25, AlgaeLink NV of the Netherlands announced their development of a new photobioreactor system built with 4-6 millimetre easy-to-assemble transparent sheets instead of pre-manufactured tubes, reducing shipping costs by 90%.  “If it were easy, most of the world’s biodiesel would already be made from microalgae grown on non-agricultural land,” said AlgaeLink President Hans van de Ven.  “But it is not that easy to grow algae at low costs.   But with our newly developed and patented AlgaeLink photobioreactors, it is now possible.”  Because algae require only water, sunlight, nutrients and carbon dioxide, it could be grown virtually anywhere without competing for agricultural land.

In short, ethanol can be produced from the starch or cellulose from a myriad of plant materials, and biodiesel can be produced from the lipids in oilseed crops, algae, or even animal fats such as hog or fish processing waste.  With petroleum breaking the $90 per barrel threshold, commercialization of more biofuel feedstocks will surely accelerate as communities look for a more environmentally friendly and profitable way to meet their transportation fuel demands.

Sources: http://www.energycurrent.com/index.php?id=3&storyid=5595
http://www.plants.usda.gov/factsheet/pdf/fs_pavi2.pdf (pdf format)
http://www.mascoma.com/welcome/pdf/09.27.07%20-%20Mascoma%20News%20Release%20-TENN%20-%20FiNAL.pdf (pdf format)
http://www.tri-cityherald.com/tch/local/story/9293795p-9208281c.html
http://www.earthportal.org/news/?p=382
http://www.fplenergy.com/news/contents/2007/071907.shtml
http://www.renewableenergyaccess.com/rea/news/story?id=47788
http://www.energycurrent.com/index.php?id=3&storyid=5890
Morath, Eric and Cain, Charlie.  “Company Picks Michigan for $100M Wood Ethanol Plant.”  The Detroit News 20 July 2007.
http://uwnews.org/article.asp?Search=2003+forest+thinning&articleid=3418
http://www.bluefireethanol.com/pr/40
 http://www.ars.usda.gov/research/publications/publications.htm?seq_no_115=142316
http://www.biodiesel.org/buyingbiodiesel/producers_marketers/ProducersMap-Existing.pdf (pdf format)
http://akaka.senate.gov/public/index.cfm?FuseAction=PressReleases.Home&month=10&year=2007&release_id=1873
Baker, Marvin. "Canola biodiesel plant near Velva first of its kind in N.D." The Minot Daily News 11 October 2007.
http://www.imperiumrenewables.com/grays.html
http://www.biobasednews.com/list2.php?storyid=15375

North Carolina Solar Center Markets Blend of Biodiesel and Heating Oil

The North Carolina Solar Center has created a brochure to market BioHeat®, a blend of biodiesel (typically 5-20%) and heating oil.  The “BioHeat® is Better” campaign is the second phase of a program sponsored by the North Carolina Soybean Producer’s Association to increase the use of soybean-based biodiesel.  The third and final phase will be executed next year with a “Biodiesel Bus Wrap”, in which buses will advertise the four E’s of biodiesel: Ease of use, Environmental benefits, Emissions reductions and Economic growth.  The brochures can be ordered at www.cleantransportation.org or by calling (919) 513-0852.  

Sources: http://www.engr.ncsu.edu/ncsc/transportation/bioheat.htm
http://www.engr.ncsu.edu/ncsc/transportation/docs/Press/2007-9-19_Bioheat_Press_Release.pdf (pdf format)

Pennsylvania Governor Promotes Energy Plan, Announces Investment in Alternative Energy Projects

In a joint session of the Pennsylvania General Assembly on September 24, Governor Edward Rendell attempted to persuade legislators to enact his “Energy Independence Strategy” by focusing on the danger of relying on foreign oil and the potential for job creation in the state.  He said the state needs “an energy policy that allows us to reduce our dependence on foreign oil and makes our nation safer,” after quoting the memoir of former Federal Reserve Chairman Alan Greenspan that stated the Iraq war is largely about oil.  Governor Rendell also listed economic growth as an important impact of his strategy, citing the 3,000 jobs created in the state after the Alternative Energy Portfolio Standard was passed in 2004.

The governor’s strategy includes a $500 million investment in projects such as biofuel plants, solar and advanced coal technologies, grants to reimburse homeowners and small businesses for up to 50% of the cost of installing solar panels and up to $100 for residential purchases of energy-efficient appliances, and a requirement that every gallon of gasoline sold in the state include 10% ethanol by 2017.

Three weeks later, Governor Rendell announced the investment of more than $11 million in 24 projects utilizing bioenergy, solar, wind, geothermal and hydro power and other energy efficiency and alternative energy technologies.  The project will create more than 730 permanent jobs and reduce carbon dioxide emissions by 2.7 million tons and smog-producing sulfur dioxide by 15,000 tons annually.  “For far too long, Pennsylvania has been held back because so much of its economy was in industries that were shrinking.  Now we are well positioned to compete with other states and other nations for more of these projects and that position will only increase with the Energy Independence Strategy we have proposed.  We should jump at this chance.”

Sources: http://media.philly.com/documents/rendellenergyspeech.pdf (pdf format)
http://www.philly.com/inquirer/politics/pa/20070925_Rendell_links_energy_plan_with_defense.html
http://www.earthtimes.org/articles/show/news_press_release,199035.shtml#

Michigan Considers Renewable Energy Standard

The Michigan State Senate Committee on Energy Policy is currently reviewing legislation to create a Renewable Energy Standard (RES), first introduced in April by Democratic State Senator Jim Barcia.  The bill would require that 20% of electricity used in the state come from renewable resources by 2020.

Support for such a standard is growing. The Urban Core Mayors, an association of mayors from metro areas representing 80% of Michigan’s population, announced their endorsement of a requirement of 15% renewable energy by 2015 two months before this bill was introduced. Governor Jennifer Granholm laid out slightly less ambitious RES goals of her own in her state of the state address. A study by the non-profit NextEnergy found that Michigan’s gross state product and employment levels will improve with the implementation of an RES, especially if combined with energy efficiency measures.

“There is no question that the clean energy sector is a key factor in Michigan’s economic future,” said Democratic State Senator Mark Schauer. “It will not only make us more competitive, protect public health, and preserve the beauty of our Great Lakes state, but it will lead to significant job creation.”

Sources: http://www.michigan.gov/gov/0,1607,7-168--161761--,00.html
http://www.michigan.gov/documents/deq/deq-ess-MichiganRPS-EE-FinalReport_193745_7.pdf (pdf format)
http://www.environmentmichigan.org/newsroom/energy/energy-program-news/bipartisan-bill-calls-for-20-of-electricity-from-renewables-by-2020
“States Looking to Promote Renewable Energy Use”. CongressDaily. October15, 2007. National Journal Group, Inc.

Low Ethanol Prices May Trigger North Dakota Production Subsidy

Low ethanol prices and high corn prices may lead to the first payout of a North Dakota subsidy since it was established in 2003.  The subsidy is paid when the state's average ethanol price is below $1.30 per gallon and the average price of corn is above $1.80 per bushel in the same calendar quarter.  "Looking at what the trends are, it is possible you could see some money coming out of the fund this quarter," said Bill Huether, an energy engineer in the North Dakota's Department of Commerce.  "Ethanol prices have been dropping, and corn prices have been pretty strong."  The subsidy, which sets an annual limit of $1.6 million for any given refinery and cuts off payments entirely after a plant has received $10 million in state support, is financed through taxes on agricultural fuel and registration fees for farm vehicles.  Two companies that are eligible for the subsidy, should it be paid, are Red Trail Energy and Blue Flint Ethanol, both of which opened ethanol refineries in North Dakota within the last year.

Source: Wetzel, Dale. "Ethanol price decline might trigger state subsidy." The Minot Daily News 12 October 2007.

Minnesota Reaches Ten Years of E10

This October marked the tenth anniversary of Minnesota’s requirement to blend 10% ethanol into nearly every gallon of gasoline sold in the state.  Ethanol was originally used as an oxygenate in the Twin Cities metropolitan area to reduce carbon monoxide levels in winter months.  The program was so effective that it was expanded to a year-round requirement and later to the entire state of Minnesota.  Tim Gerlach, Regional Vice President of the American Lung Association of the Upper Midwest, highlighted the benefits of using E10: “With the help of ethanol and other tools at our disposal, we’re now consistently meeting air quality standards while we’re replacing ten percent of fuel that would normally come from outside our borders with cleaner renewable fuel we grow right here in our states.”

Source: http://the-farmer.com/index.aspx?ascxid=fpStory&fpsid=30238&fpstid=2

Connecticut Adds E85 Pumps for State Flex Fuel Vehicles

Another location for pumping E85 (85% ethanol, 15% gasoline) is now available for State of Connecticut vehicles.  The state-run garage in Hartford is the third station to dispense the biofuel in Connecticut, joining stations already established in Newington and Danbury.  Governor M. Jodi Rell had released a study in July recommending the addition of the Hartford filling station and another one in Norwich to increase the use of E85 by up to 25 percent. 

Connecticut is required by the Energy Policy Act to make 75% of their light duty vehicle acquisitions alternative fuel vehicles, or to obtain an alternative compliance waiver by reducing its gasoline consumption by the same amount through other means.  The governor’s administration had been criticized for the state’s policy of purchasing flex- fuel vehicles that can run on E85 or gasoline, but only using the ethanol blend 3% of the time.

Sources: "State-Run Garage to Dispense Ethanol." The Hartford Courant 3 October 2007.
http://www.ct.gov/governorrell/cwp/view.asp?A=2791&Q=386772

Florida Web Page Helps Drivers Find Ethanol and Biodiesel Pumps

The Florida Department of Agriculture and Consumer Services has created a new web page to help state residents find stations offering alternative fuels.  The web page, which lists the locations of pumps dispensing E85, E10, B100 and B20, can be accessed at http://www.doacs.state.fl.us/standard/petro/AltSiteMap.html.  “This tool will enable motorists to locate renewable, cleaner burning fuels around the state,” said Charles Bronson, Commissioner of the Department.  “I am very pleased that a number of facilities are now making these fuels available to the public, and we expect the number to continue growing.”

E85 is a blend of 85% ethanol and 15% gasoline and can only be used in specially designed flex-fuel vehicles, whereas E10 (10% ethanol, 90% gasoline) can be used in place of regular gasoline without engine modification.  B100 (pure biodiesel) and B20 (20% biodiesel, 80% diesel) can be used in any diesel engine without modification.

Source: http://www.doacs.state.fl.us/press/2007/10232007_2.html

World’s First 100% Biodiesel-Fueled Jet Takes Flight in Nevada

Carol Sugars and Douglas Rodante of Green Flight International piloted the world’s first jet fueled by 100% biodiesel this fall.  The historic flight in a Czechoslovakian-built L-29 out of the Reno-Stead Airport was made in partnership with Nevada-based Biodiesel Solutions, Inc., a manufacturer of community-scale biodiesel production equipment.  “This test program between Green Flight International and Biodiesel Solutions was a unique and exciting opportunity to show what can be done in renewable fuels,” said Biodiesel Solutions’ President Rudi Wiedemann.  “The very idea of using 100% biodiesel to fly a jet aircraft makes a compelling statement about the possibilities for the future of renewable energy and a healthier planet.”

The use of clean, renewable fuels may soon expand into the airline industry as well.  Virgin Atlantic and Air New Zealand both have plans to run a test flight in 2008 in which one engine on a four-engine jet will run on a biofuel or biofuel blend.  Commercial aviation is responsible for 2% of U.S. greenhouse gas emissions according to the Air Transport Association.

Sources: http://www.biodieselsolutions.com/news_detail.aspx?nid=47
http://www.airlines.org/news/releases/2007/news_5-16-07.htm
http://news.bbc.co.uk/1/hi/sci/tech/7017694.stm

Chicago Area School Bus Company Expands Use of Biodiesel

The Cook-Illinois Corporation has announced it will fuel an additional 400 school buses with B11 (11% biodiesel, 89% diesel), bringing their total biofueled fleet to about 1,800.  The company estimates that they have reduced air pollutants in the Chicago area by nearly 1,000 tons in one year.  “As a national leader in alternative fuels, we want to make a difference in the air quality for school children,” said John Benish, CEO.  “Biodiesel is environmentally sage and will benefit students and the community by reduction of pollution.” 

Repeated exposure to diesel fumes has been linked to asthma and other respiratory problems.

Source: http://www.biodiesel.org/news/bulletin/2007/100107.htm#3

Ethanol Surplus and Distribution Problems Drive Prices Down

The ethanol boom of the past few years may be ending according to some experts, with the biofuel’s spot price dropping 20-30% in a number of local markets.  The dramatic increase in supply is partly to blame.  The Renewable Fuels Association (RFA) reports 129 ethanol plants currently in operation – compared to 81 in 2001 – and more than 80 additional plants under construction.  However, many attribute the price depression to difficulties in distributing ethanol from the predominantly Midwest refineries to the population centers near the coasts.

Because ethanol’s corrosive nature and capability to attract water prohibit it from being transported in pipelines, it must be shipped via rail, truck or barge.  A recent report from the U.S. Department of Agriculture identifies a shortage of HAZMAT-certified truck drivers and a backlog of rail tank car orders as potential challenges to the growth of the ethanol industry.  “We have an industry that has doubled in size in just the past couple years,” said Bob Dinneen, President and CEO of RFA.  “It is going to take a little time for the infrastructure to catch up.”

While larger, more efficient ethanol producers will likely survive this time of reduced profits, smaller companies may go out of business—especially if corn prices remain high.  Some in the industry are looking to Congress to increase the Renewable Fuel Standard, which would compel ethanol refiners and blenders to process higher amounts on an accelerated timetable.

Sources: http://www.ams.usda.gov/tmd/TSB/EthanolTransportationBackgrounder09-17-07.pdf (pdf format)
http://www.ethanolrfa.org/industry/statistics/
http://www.nytimes.com/2007/09/30/business/30ethanol.html?ex=1191902400&en=1c21363b5f90910f&ei=5070&emc=eta1

DuPont Supports Cellulosic Ethanol Research at Iowa State

On September 21, DuPont announced a $1 million pledge for the Iowa State University New Century Farm, the first research project that will focus on both the growing and processing of cellulosic feedstock into ethanol.  “At the New Century Farm, the opportunity is great to integrate directly into agricultural fields the connections with harvesting, transportation, storage and processing,” said Dr. Wendy Wintersteen, Dean of ISU’s College of Agriculture and Life Sciences.  In addition to researching new technologies and processes, objectives of the project include training future scientists and farmers and demonstrating the economic, social and environmental viability of bioenergy.

Source: http://www.ag.iastate.edu/aginfo/news_detail.php?var1=364

Particle Board Plant-Turned-Biorefinery Could Provide Jobs, Educational Opportunities for Michigan Town

A former particle board plant in northern Michigan may see new life as a biorefinery that will produce cellulosic ethanol, wood pellets and lumber.  The Georgia-Pacific plant closed in March of 2006, eliminating 210 jobs in the small community of Gaylord.  If the new project goes through, 165 new manufacturing jobs will be created by the small diameter hardwood sawmill operated by Gaylord Lumber Products, LLC, the cellulosic ethanol refinery run by Mascoma Corporation and a “to-be-announced” wood pellet producer.  Up to 500 producer and transportation-related jobs may be created as well.  Jeff Ratcliffe, Executive Director of the Otsego County Economic Alliance, one of the organizations behind the project, noted that “a number of steps have to be successfully completed before it becomes reality, but the economic impact for our community and region could be substantial.”

Another partner in the redevelopment effort is the University Center at Gaylord, which hopes to use the biorefinery as a resource to train the next generation of the bioenergy and biobased products workforce.  “Our objective is to try to make the University Center a center of excellence for biotechnology research through laboratories that when not being used for that research can be shared with University Center partners to provide science related undergraduate and graduate curriculum,” said Jack Thompson, Executive Director of the University Center.

Sources: http://www.gaylordheraldtimes.com/articles/2007/09/29/news/top_stories/doc46fd6933373f6173086543.txt
http://www.gaylordheraldtimes.com/articles/2007/09/30/news/top_stories/doc46fd6a737da34098102667.txt

Merrill Lynch Introduces Biofuels Indices

Investors looking to profit from the fast-growing ethanol and biodiesel markets have typically referred to traditional agriculture commodity indices, but on October 1, Merrill Lynch introduced two indices offering exposure specifically to biofuels. The MLCX Biofuels Index contains seven commodities commonly used as ethanol or biodiesel feedstocks: sugar, corn, soybeans, barley, rapeseed, canola, and soybean oil. The MLCS Biofuels Plus Index adds conventional gasoline and diesel to the biofuel commodities.

“Our indices have been carefully designed to mitigate the negative roll returns inherent to many agricultural commodities markets,” said Francisco Blanch, head of global commodity research at Merrill Lynch. “They also offer additional returns by overweighting crops that produce the most energy in biofuel production, notably sugar and soybeans.”

Source: http://www.ml.com/index.asp?id=7695_7696_8149_74412_82725_82759

Monsanto Increases Investment in Mendel Biotechnology

On October 15, Missouri-based Monsanto Company announced it has increased its investment in California-based Mendel Biotechnology, Inc.  Mendel has been working to develop soy and other crops for the biofuel industry and will use the investment to develop its BioEnergy seeds and ethanol feedstock business.  “We’re encouraged by Mendel’s development of technologies that serve the cellulosic biofuels industry.  We’ll closely monitor development of this technology and how it could be applied to support global bioenergy needs,” said Dr. Steve Padgette, Monsanto’s Vice President of Biotechnology.

Sources: Gillam, Carey (Reuters.) "Monsanto increases investment in Mendel." The Washington Post 15 October 2007.
http://monsanto.mediaroom.com/index.php?s=43&item=544

Survey Shows Public Interest in Biobased Products

A national survey of 1,370 people conducted by NuStats found that 88% support Congress' increase of funding for the USDA's promotion, education and research efforts in the field of biobased products.  The poll, commissioned by the United Soybean Board (USB) and funded by the soybean checkoff, also revealed that a strong majority support a federal procurement program for biobased products.  While 75% of respondents said they were unfamiliar with biobased products, most of them expressed an interest in learning more.  "This research affirms that Americans see the value of biobased products, which can be made from U.S. soybeans, to offer energy security, environmental, worker health and other benefits," said Chuck Myers, USB Chair of Domestic Marketing. 

The soybean checkoff funds research, development and commercialization of new industrial uses for soybeans, some of which include plastics, foams, methyl esters and ink.

Source: http://www.grainnet.com/articles/National_Study_Reports_Availabilty_and_Attributes_of_Biobased_Products_Draw_Public_Interest_-49063.html 

Corn-Based Deodorants Hit the Market

On September 20, DuPont Tate & Lyle Bio Products announced that they are providing their corn-based propanediol called Zemea™ to Terra Naturals, Inc., for use in its aluminum and petroleum free deodorants. According to Terra Naturals co-founder Svetlana Ratnikova, Zemea™ propanediol “replaces propylene glycol in petroleum-based deodorants and vegetable glycerin in existing natural deodorants.  Vegetable glycerin can be very sticky and reduces overall product performance, and propylene glycol is derived from natural gas, a product that energy-conscious consumers are trying to reduce their dependence on.”

DuPont Tate & Lyle Bio Products president Steve Mirshak made note of the biobased trend: “We are seeing increasing demand for products made from renewable, corn-derived ingredients in the cosmetics and personal care markets.”

Source: http://duponttateandlyle.com/news_092007.html

World’s Largest Wood Pellet Plant to Supply European Power Plants with Florida Bioenergy

Green Circle Bio Energy Inc., a Florida-based company owned by JCE Group AB of Sweden, plans to open the world’s largest wood pellet plant in the panhandle County of Jackson this December.  The $65 million plant will employ 45 people and produce 550,000 tons of wood pellets annually – enough to generate 2,400 gigawatt hours of electricity – from the abundant local woody biomass resources.  “The southeast United States has the largest plantation-style pine forest in the world,” said Olaf Roed, president and CEO of Green Circle, adding that the new plant will provide a market for the small diameter pulpwood that must be removed for effective forest management. He continued,  “If we were not here to buy the pulpwood, which is in lesser demand than the saw timber, it would be worse for the forest situation in the United States.” 

Green Circle requires a minimal amount of fossil fuel inputs to produce the wood pellets, reporting an 11-fold renewable energy gain for every unit of fossil fuel used.  This high return is achieved by burning the bark from the pulpwood to provide heat necessary for the pellet production and purchasing renewable electricity from hydropower and methane to run air conditioning, electric motors, and other components.

The pellets will be shipped to Europe, where a number of power plants run exclusively on biomass.  There is little demand from U.S. power plants for woody biomass, although some co-fire a small percentage of biomass with coal or natural gas as an easy way to reduce emissions without making significant modifications to existing fossil fuel plants.  If U.S. power plants increase their demand for renewable resources – which may happen if Congress enacts a federal Renewable Electricity Standard or cap-and-trade system for carbon emissions – Green Circle may build another wood pellet plant for the domestic market.  “Europe has the trading system for emissions rights, and it’s unsure yet what the U.S. federal government is going to do,” said Mr. Roed.  “We expect to see something, but the building of another Green Circle plant to produce pellets for U.S. power companies all depends on what measures are put in place and what solutions are selected.”

Source: http://www.biomassmagazine.com/article.jsp?article_id=1331

Wildlife Habitat Policy Research Program (WHPRP) Soliciting Research Proposals for Bioenergy Impacts

The National Council for Science and the Environment (NCSE), through its Wildlife Habitat Policy Research Program (WHPRP), has announced its second annual request for research proposals on important topics related to the challenges of implementing State Wildlife Action Plans and accelerating the conservation of wildlife habitat in the United States. The 2008 request lists six projects for which funding is available, including the impacts of bioenergy production on the conservation of wildlife habitat.

Source: http://www.ncseonline.org/WHPRP/cms.cfm?id=2058

Writers: Jetta L. Wong, Jesse Caputo, and Laura Parsons
Editor: Carol Werner

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The Environmental and Energy Study Institute (EESI) is a non-profit organization that works at the nexus of policy and innovation to promote environmentally sustainable societies.  EESI was founded in 1984 by a bipartisan group of Congressional Members dedicated to finding environmental and energy solutions.  EESI provides credible, timely information and innovative policy ideas through coalition building, media outreach, publications, briefings, workshops and task forces on the issues of energy efficiency and renewable energy, transportation, smart growth, agriculture and global climate change.  Carol Werner leads the EESI team as executive director.