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Update on BioTown, USA
By Eric Burch, Indiana Office of Energy and Defense Development

The BioTown, USA project in Reynolds, Indiana continues to move forward.  This model project, where a community is committed to generating as much if not more energy than they consume from renewable sources is the first of its kind in the United States. This is a joint project between the Town of Reynolds, The Indiana State Department of Agriculture, and the Indiana Office of Energy & Defense Development. BioTown is all about renewable energy, whether its waste-to-energy technology or Biofuels.

While the BioTown, USA accomplishments are many – biodiesel and E85 are being offered at the gas station in Reynolds; more than 150 residents drive flex-fuel vehicles; and the town committing to biofuels – there have been bumps in the road. Like any pioneering project, the road to success is uncharted and often winding.

Ground was broken in March, 2007 on the Technology Suite.  The Technology Suite will consist of three different waste to energy technologies, an anaerobic digester, a gasifier, and a biodiesel generation package.  The feedstocks for the Suite include livestock and industrial waste, and potential municipal waste as well.  Shortly after the groundbreaking, the BioTown Development Authority decided to go with a different project leader. Energy Systems Group (ESG) has been selected as the company to develop the Technology Suite moving forward.  ESG will develop the Technology Suite in phases, beginning with a digester. They are currently working toward an agreement with a power company to purchase the electricity produced by a digester. They are also finalizing contracts for renewable waste to go into the digester. When those agreements are in place, construction will begin.  ESG is estimating that construction work on the digester will begin in about 30 days, and the first electricity from the Suite to be generated by the end of 2008.

In addition to the change in technology provider, the state and the partners found additional grant opportunities that would reduce or eliminate any capital expenditures by the town for new infrastructure. Because many of the grants have to be done prior to construction, the grants are being pursued and construction has not started.

Through a joint U.S. Agriculture Department and U.S. State Department grant, representatives from BioTown, USA traveled to Germany in October, 2007 to meet with residents of Bioenergy Village. Juehnde is Bioenergy Village, the German version of our very own BioTown.  The exchange mission resulted in the beginning of a long-term partnership between the two towns, a shift in German impressions of American energy attitudes and momentum gained from lessons learned by Germany’s own version of BioTown. 

With nearly 750 residents, Juehnde is the first village in Germany to produce its complete heat and electricity supply from bioenergy.  The BioTown delegation met with the U.S. Ambassador to Germany, German Parliament members, and various organizations related to bioenergy.

The German Bioenergy Village project planning began in 1998, and the village officially reached self-sufficiency in energy production in June 2006. Juehnde’s plant provides heat and water to the village and also sells electric energy onto the electricity grid.  It took the German community nearly 8 years to bring its project to reality.  BioTown USA representatives took heart in realizing our own initiative is only just over two years old.

Other activities now underway at BioTown, is the development of a Visitors Center, that will provide a gathering point for the many groups from around the country that have sought to tour BioTown, USA.  It will include interactive displays and demonstration projects. The Visitor’s Center will be open in April, 2008.  

Researchers, planners, professors and students from Purdue University and Ball State University are getting together to design the BioTown Education Center. This permanent facility will be located at the site of the Technology Suite. It’s hoped when this facility is completed it will provide an educational experience to visitors not only about the technology used at BioTown, USA, but a variety of other renewable and alternative energy technologies.  This facility is not expected to be complete until 2009..

How Will the US meet the New Renewable Fuel Standard and Address Environmental Sustainability?

Many reports as well as news articles have been released highlighting positive and negative externalities of the growing bioenergy industry. Questions around greenhouse gas emissions, economic development, international impacts (including land use changes and property rights of indigenous people) have all illustrated conflicts with many of the original goals of advocates for bioenergy production. Expectations that bioenergy, specifically renewable fuels, would be a part of the US national security strategy to break the country’s ‘addiction to oil’ as well as the strategic use of these fuels as part of a greenhouse gas reduction regime are being called into question.

Last year’s action on energy legislation resulted in the passage of the Energy Independence and Security Act or EISA (P.L. 110-40).  The EISA has been proclaimed by some energy experts as a landmark bill designed to increase renewable energy and energy efficiency technologies. This law includes several important provisions, including an expansion and extension of the Renewable Fuel Standard or RFS (first authorized in the Energy Policy Act of 2005 P.L. 109-58). The RFS requires 9 billion gallons of renewable fuel to be used in 2008, increasing to 36 billion gallons by 2022. Of this requirement, 21 billion gallons must be advanced biofuels, including cellulosic biofuels and biomass-based diesel. The important inclusion of the RFS by Congress illustrates its dedication to the growing role that it expects renewable fuels to play in addressing climate and national security issues.

Concerns over meeting the requirements of this large RFS and about the environmental and social impacts of renewable fuels have not gone unnoticed by Congress. Programs have been under development for the last year which will help the expanding renewable fuel industry address national security and climate change.  These programs may be found in the House and Senate-passed farm bills –Farm, Nutrition, and Bioenergy Act of 2007 and Food and Energy Security Act of 2007, respectively.Objectives of these programs (discussed below) include: diversification of feedstocks, development of appropriately-scaled projects and needed research.

Diversification of feedstocks for renewable fuels and other biomass technologies will have to occur if the country is going to meet the recently passed RFS.  The transition to cellulosic energy crops from traditional row crops may be very risky, especially if markets are not fully developed.  The Biomass Energy Crop Transition Assistance (Senate) and the Biomass Energy Reserve (House) provisions are designed to provide incentives to farmers and foresters to grow bioenergy crops in a sustainable manner. This program also provides an incentive for producers to harvest, store, and transport biomass to bioenergy facilities. If these new feedstocks are grown in a way that do not change land use (such as winter cover crops) some concerns around biomass may be addressed. Additionally, the Biomass Inventory Report will help the whole country identify new feedstocks including waste streams, which also do not require a land use change, but can be used to produce bioenergy.

Concerns about sustainable usage of agriculture residues as well as forest thinnings for large-scale production facilities is understandable given the challenges the country faces with the increased demand for energy. Bioenergy production facilities that are appropriately scaled to biomass availability may be propelled forward in new farm bill programs. One such program that addresses this issue is the Community Wood Energy Program (modeled on the successful Fuels for Schools Program) which provides financial assistance for communities that wish to use woody biomass as the primary energy source in schools, hospitals, libraries, and other public buildings. These projects may not exceed 2 megawatts for electric power production or 50,000,000 Btu per hour for heating.  The program provides small grants for the creation of community wood energy plans and more substantial grants for upgrades and acquisitions in equipment and technology. Furthermore, the Future Farmsteads Program will equip five farmhouses (and its surrounding land) in diverse regions of the country to demonstrate energy efficiency and local, on-farm production of energy from diverse feedstocks. The program will serve as a visual, working example for rural communities, showcasing technologies and energy solutions appropriate to the locale.

Continued research, demonstration, deployment and, most importantly, commercialization of new technologies is encouraged in the House and Senate farm bills through several programs. Key areas of research include: sustainable production; social and economic impacts of production; and technical applications, including conversion of materials, harvesting and storage infrastructure. For example, the Renewable Wood Biomass for Energy program establishes a research and development program focused on developing technologies for the utilization of low-value biomass (such as hazardous fuels treatments in at-risk communities) for energy. Another program which has a long history of successful projects is the Biomass Research and Development Initiative which has as one of its objectives to produce a “diversity of sustainable domestic sources of biomass for conversion to biobased fuels and biobased products.” This program may be vital in identifying how to utilize organic waste streams and residues, which do not induce a land use change, for conversion to renewable fuels.

The current challenge is to ensure that clean and sustainable bioenergy becomes an integral part of agriculture policy.  Although it is exceptional to see these programs included in both farm bills, there is a giant disconnect in the minuscule funding levels for all of these important energy programs and the significant role that they are going to need to play, not just in reaching the new requirements of the RFS, but in addressing the pressing issues of the 21st Century – national security and climate change.

Pilot Project in Kansas Will Let Stations Sell a Variety of Ethanol Blends

Motorists in Kansas will soon have an opportunity to fill their tanks with ethanol fuel blends intermediate between the ubiquitous E10 (10% ethanol, 90% gasoline) and the flex-fuel standard E85 (85% ethanol, 15% gasoline). These new fuel options will be made available as a result of a pilot program being launched by the Kansas Department of Agriculture to encourage the installation of new pumps and equipment at retail fuel venders across the state. While flex-fuel vehicles are designed to utilize blends up to and including E85, any standard gasoline engine is able to use E10 and, in fact, it is often sold unlabeled and undifferentiated from straight gasoline. It is also possible to fill regular vehicles with blends higher than E10. A recent study suggests that many vehicles will experience increased efficiency and mileage using blends such as E20 and E30. The Kansas Department of Transportation is involved in a similar investigation and could soon endorse blends higher than E10 for use in all vehicles. Right now, auto manufacturers only guarantee the use of E10 in regular-fuel vehicles. According to Lisa Taylor, a Kansas DOT spokesperson, “We advise vehicle owners that running a higher ethanol blend might void their warranty because automakers have only endorsed E10 blends… But if there is no warranty issue and a consumer wants to see how an E20 blend performs, that’s an option.”

Sources: Griekspoor, Phyllis Jacobs. “Pilot Project in Kansas Will Let Stations Sell a Variety of Fuel Blends”. The Wichita Eagle 30 December 2007.
See BCO 43 Article "Research Shows Some Ethanol Blends Get Better Gas Mileage than Gasoline”

South Dakota Governor Proposes Biodiesel Tax Cut, Biobased Procurement Policy

On January 8, South Dakota Governor Mike Rounds announced in his State of the State address that he would introduce a bill to decrease the tax on biodiesel blends by 2 cents per gallon, a reduction equal to that currently given to ethanol blends.  “The advantages of biodiesel are less engine maintenance, fewer emissions, no loss in fuel economy, and it opens up another market for our soybean farmers,” said Governor Rounds.  The governor also stated that he would introduce a bill to allow a preference for the purchase of biobased products by the state government in order to increase South Dakota’s use of non-petroleum products. This preference would extend to biobased products that are up to 5% more expensive than conventional products.

Sources: http://www.kmeg14.com/Global/story.asp?S=7595278&nav=menu609_2_4
http://sd.gov/docs/STATE%20OF%20THE%20STATE%20SPEECH%202008.pdf

Oregon Tax Credits Encourage Purchase of Clean-Burning Wood, Pellet Stoves

Interest in clean-burning wood and pellet stoves has been increasing this year in Oregon, due in part to the Oregon Residential Energy Tax Credit Program.  In December 2007, the state legislature approved a tax credit of 25 percent of the net cost of installing qualified stoves (after deducting the estimated average first year energy savings) up to a maximum of $300.  Stoves must be installed with a dedicated outside combustion air intake and be certified to emit no more than 4.5 grams of smoke per hour for non-catalytic wood stoves, or 2.5 grams per hour for catalytic wood or pellet stoves, to receive the credit.  “People now have an incentive to choose cleaner stoves,” said Mark Kendall, Senior Policy Analyst of the Oregon Department of Energy.  Several cities in Oregon also require that homeowners upgrade to stoves that generate fewer soot particulates when selling their homes, but the state was unable to pass such a measure in 2007. 

All users of wood and pellet stoves in the state are receiving support through another initiative, the Biofuels Consumer Income Tax Credit, which credits $10 for every ton of pellets and fire wood purchased.  Currently, about one quarter of Oregon homes burn wood or pellets for heat.

Individual homeowners are not the only ones tapping government incentives to use Oregon’s renewable woody biomass resources.  With funding from the U.S. Forest Service and the federal Economic Development Administration, the Central Oregon Intergovernmental Council is assisting schools, businesses, and others with large-scale heating needs to install biomass boiler systems.  Avoiding the high costs of natural gas is one of several benefits to recipients of Central Oregon Biomass Boiler Initiative funding. According to the initiative’s coordinator Robin Snyder, “Woody biomass heat doesn't just save us money in Central Oregon, it means jobs, energy independence, clean air, and a healthy ecosystem."

Sources: http://timberbuysell.com/Community/DisplayNews.asp?id=2066
http://www.oregon.gov/ENERGY/CONS/RES/tax/HVAC-Biomass.shtml
http://www.mailtribune.com/apps/pbcs.dll/article?AID=/20080107/NEWS/801070313
http://www.oregonnews.com/article/20071206/REGIONALNEWS/71206006

Indiana Supports Biomass-to-Energy Project

I Power, a manufacturer of combined heat and power systems, has received a grant through the Indiana Office of Energy and Defense Development’s (OED) Biomass Feasibility Study Program, which was established to develop technically and economically feasible biomass-to-energy projects.  I Power will study the use of anaerobic digestion and gasification technology to convert cow and pig waste into energy, as well as examine environmental issues such as soil nutrients, ground water, and landfill use.  “We consider this a very positive move for I Power and the State of Indiana in terms of product opportunity and environmental impact and we appreciate the OED’s vision and initiative in implementing such a program,” said I Power President Terry Pahls.  The results of the study will also be useful in future applications for funding from the U.S. Department of Agriculture’s Section 9006 program.

Source: http://biz.yahoo.com/bw/080103/20080103005671.html?.v=1

Anaerobic Digester Financed by Combination of Pennsylvania Incentives and Federal Grant

The Brubaker Dairy in Mt. Joy, Pennsylvania has become an example for local farmers on how to take advantage of federal and state incentives to finance renewable energy systems.  The farm installed an anaerobic digester with $600,000 from the Pennsylvania Energy Harvest Grant Program, which has been funding advanced energy projects since 2003, and the Pennsylvania Resource Enhancement and Protection Act provided a tax credit for the use of best agricultural management practices.  The project also received $223,249 from the U.S. Department of Agriculture’s Renewable Energy and Energy Efficiency Grant Program provided by Section 9006 of the 2002 farm bill.

Anaerobic digesters use bacteria to convert cow manure or other organic waste into methane, mimicking the natural decomposition process in the absence of oxygen; the methane is then used to generate electricity.

Sources: http://www.farmland.org/news/newsletters/enews/2008/0108.htm
http://www.depweb.state.pa.us/energytech/cwp/view.asp?a=3&q=493454
http://www.agriculture.state.pa.us/agriculture/cwp/view.asp?a=3&q=145155
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2006/08/0329.xml

North Carolina Biofuels Center Begins Research

With a goal of identifying advanced biodiesel and ethanol feedstocks and processes, the new North Carolina Biofuels Center began work on January 2.  The center was established by the General Assembly in 2007 with a $5 million appropriation and is based in Oxford at a former Tobacco Research Station.  John Ganzi, president of the Biofuels Center, believes the state is well-prepared for an advanced biofuel industry, saying, “We are already a leader in biotechnology; agriculture is a $60 billion a year enterprise in the state; and the state has a history of collaborating across sectors of society to effect change.”  North Carolina plans to make 10 percent of the liquid fuels sold in the state home-grown biofuels by 2017.

Source: http://carolinanewswire.com/news/News.cgi?database=01news.db&command=viewone&id=102&op=t

Maine Governor Announces Wood-to-Energy Initiative

On January 9, Maine Governor John Baldacci announced a Wood-to-Energy Initiative in his State of the State Address.  The first step of the initiative will be transitioning state buildings from oil-based heat and power systems to wood pellets, wood chips, and other renewables.  “This not only saves money for Maine taxpayers, it generates the investment and business activity to grow Maine’s economy,” stated Governor Baldacci.  Financial incentives for homeowners and small businesses to move away from their reliance on oil will be part of the initiative.

The Governor’s announcement comes during a period of high heating oil prices, up more than a dollar from last year to a statewide average of $3.34 per gallon.  Approximately 80 percent of Maine residents use oil to heat their homes, compared with 10 percent that use wood.

Sources: http://kennebecjournal.mainetoday.com/news/local/4670043.html
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov_Speeches&id=48518&v=Article

Texas Facility First to Feed Manure-Derived Methane into Commercial Pipeline

New Hampshire-based Environmental Power Corporation announced on January 22 that its pipeline-quality biomethane production facility in Texas is now operating at full commercial-scale.  The Huckabay Ridge facility uses anaerobic digestion to convert cow manure into purified natural gas that is then injected into a commercial pipeline for distribution, a first in the United States.  The Lower Colorado River Authority and Pacific Gas & Electric have made purchase agreements for the biogas, which can be used for heat or power generation. 

In addition to reducing dependence on fossil fuels, Environmental Power’s eight anaerobic digesters solve a major environmental problem by keeping the waste of 10,000 cows out of local waterways.  “There are an awful lot more dairies that would probably like to have a way to get rid of their waste,” said Travis Brown, a renewable energy community service specialist from the Texas Office of Rural Community Affairs.  “We need more projects not only in Erath County but in other parts of the state.”

Sources: http://biopact.com/2008/01/first-for-us-company-feeds-biomethane.html
http://www.springfieldnewssun.com/green/content/shared/news/stories/dairy_070907.html

Vermont Utility Recognized for Innovative “Cow Power” Program

In its December 2007 issue, Power Magazine named Central Vermont Public Service’s anaerobic digester program as one of the five “top plants” that produce renewable energy.  The Cow Power program allows customers of the utility to purchase electricity generated from methane derived from cow manure for a premium of 4 cents per kilowatt-hour.  The owners of the dairies receive 95% of the hourly market price for the power they generate plus the 4 cent premium, a steady stream of income that protects them against milk price volatility.  The excess heat generated by the digesters can also be used to heat water and buildings, saving up to $15,000 a year in fuel costs.

Currently Cow Power has more than 4,500 customers who have chosen to purchase 25%, 50% or all of their electricity from the network of local dairy digesters.  One large subscriber is Green Mountain College, which will eventually purchase about 1.2 million kilowatt-hours per year from Cow Power.  “This is a great step for us toward a sustainably powered campus,” said Green Mountain Provost Bill Throop.  “We are very happy to be supporting not just renewable energy but also the regional economy and the family farms that are so important to the Vermont way of life.”

Sources: http://www.powermag.com/ExportedSite/Latest%20Issue/Latest%20Issue14.htm
http://www.rutlandherald.com/apps/pbcs.dll/article?AID=/20080108/NEWS01/801080315/1002/NEWS01
http://www.cvps.com/cowpower/News.html

Panda Ethanol Receives Permit for Manure-Fired Refinery

The Texas Commission on Environmental Quality granted an air quality permit to Panda Ethanol, Inc. for a 115 million gallon per year ethanol plant to be built in Sherman County, Texas. Like the majority of existing ethanol plants in the United States, this facility will produce ethanol fuel from corn starch. What sets it apart from other ethanol plants, however, is the source of its energy.  Instead of using natural gas or another fossil fuel, the Sherman County plant will be powered by biogas generated from up to 1 billion tons of cattle manure annually. By using biogas as an energy source, Panda estimates that it will be displacing over 360,000 barrels of oil a year in addition to the estimated 2.6 million barrels of oil that will be offset by the ethanol fuel itself.

Source: http://www.energycurrent.com/index.php?id=3&storyid=7831

Arizona Power Plant to Use Diverse Sources of Woody Biomass

Renegy Holdings Inc. is building a $53 million, 24-megawatt power plant near Snowflake, Arizona that will use several sources of woody biomass for its energy source.  Forest thinnings, burnt trees, and paper sludge offered for free by a local newsprint mill will be burned to produce low-carbon electricity.  The Snowflake White Mountain Power Plant will keep many thousands of tons of green waste out of landfills as well as provide a market for small diameter trees that must be thinned in order to suppress unnaturally large forest fires.  “We just think the opportunity is so vast,” said Renegy CEO Robert Worsley.  “There are billions and billions of tons of waste sitting in the forests right now.”    Arizona Public Service and Salt River Project have agreed to buy electricity from Renegy after the plant begins operations this spring, a move that will help the state’s two largest electric utilities meet Arizona’s renewable electricity mandate of 25% by 2025.

Sources: http://www.renegy.com/documents/AZRepublicArticle121207.pdf (pdf format)
http://www.renegy.com/projects.html

Biobased Erosion Control Material Approved by Oregon DOT

On December 19, Washington-based Forest Concepts LLC received notice that its wood-based erosion control material was approved for use on Oregon Department of Transportation projects.  WoodStraw™ was engineered to be resistant to high winds, promote re-vegetation, and prevent erosion for at least three years.  Being made from low grade scrap veneer – primarily Douglas fir – it is a biobased alternative to petroleum-based plastic erosion control systems.  WoodStraw has been used in a variety of projects in the western United States since its introduction in 2005, including one of Seattle-Tacoma International Airport’s runways, a bridge in King County, Washington, and areas in Southern California and Utah burned by wildfires.  Forest Concepts specializes in the commercialization of new uses for small diameter woody biomass that is available as a co-product of healthy forest management practices.

Source: http://eworldwire.com/pressreleases/18034

GM Invests in Cellulosic Ethanol Company

On January 13 at the North American International Auto Show, General Motors (GM) announced it has partnered with Illinois-based Coskata Inc. to commercialize a waste-to-ethanol process.  GM took an undisclosed minority stake in the bioenergy company, which has developed a process to convert materials such as crop residue, wood chips, and municipal solid waste into ethanol at a cost of only $1 per gallon.  “GM is enabling Coskata to produce the next generation of biofuels -- without using a food source -- making it economically viable and commercially available," commented Bill Roe, Coskata President and CEO.

GM will begin using Coskata ethanol in test vehicles by the end of this year, when a 40,000-gallon commercial demonstration biorefinery begins operations.  A full-scale, 100 million gallon per year facility is scheduled to come online by 2011.  GM Chairman and CEO Rick Wagoner acknowledged that electric vehicles will take over much of the market in the future, but cellulosic ethanol is a near-term solution to the fossil fuel problem, commenting, "Nothing else we can do gets even close to that kind of impact that soon.”

Sources: http://www.washingtonpost.com/wp-dyn/content/article/2008/01/13/AR2008011302640.html
http://www.motortrend.com/auto_shows/coverage/detroit/112_0801_general_motors_ethanol/

Chevron Partners with Solazyme to Commercialize Biodiesel from Algae

Chevron Corporation and biotech company Solazyme Inc. announced an agreement on January 22 to develop and commercialize biodiesel derived from algae.  On the same day, Solazyme announced that its algae-based biodiesel had performed successfully in long distance road testing under typical driving conditions, including below-freezing temperatures, in an unmodified diesel engine.  The challenge is to scale up production and drive production costs down to the company’s goal of $45-50 a barrel.   “A lot of the work now is focused on chemical engineering to improve the processes so we can bring the costs down,” said the CEO of Solazyme, Jonathan Wolfson.  “We have a high degree of confidence we can be to a commercial scale and commercial economics in two to three years.”

Sources: http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22427301.htm
http://www.solazyme.com/news080122.shtml

Ecological Society of America Warns of Environmental Impact of Biofuel Industry

The Ecological Society of America (ESA) released a position statement on January 10 that warns that the country’s biofuel industry will continue to degrade our natural resources in the absence of certain precautions.  “Current grain-based ethanol production systems damage soil and water resources in the U.S. and are only profitable in the context of tax breaks and tariffs.  Future systems based on a combination of cellulosic materials and grain could be equally degrading to the environment, with potentially little carbon savings, unless steps are taken now that incorporate principles of ecological sustainability,” according to the ESA.  The necessary principles include consistent monitoring of net energy values and environmental impacts of growing biofuel crops, conserving ecosystem services such as flood control or water filtration, and ensuring that policies incentivize the development of a variety of feedstocks.

New York City Company Fuels Its Trucks with Biodiesel

FreshDirect, a deliverer of fresh and prepared foods in New York City, announced that it has begun fueling its trucks with B5, a blend of 5% biodiesel with 95% diesel, supplied by Tri-State Biodiesel.  FreshDirect had been donating its leftover cooking oil to the biodiesel producer since the summer of 2007.  By using B5 in their trucks, “we are closing the loop and powering our vehicles with the very same clean and efficient fuel that we have contributed to producing,” according to Adrian Williams, Senior Vice President of Transportation for FreshDirect.

Tri-State estimates that FreshDirect’s transition to the biofuel will eliminate approximately 7.5 million pounds of carbon dioxide that would otherwise have been emitted in its deliveries to over 250,000 customers.  “We applaud FreshDirect for being a biodiesel pioneer here in New York City,” said Tri-State CEO Brent Baker.  “Not only will this transition to clean burning biodiesel fuel result in a big drop in the air pollution levels, but it also helps to bring biodiesel on as a mainstream fuel for the many trucking fleets of the city.”  Other harmful pollutants such as carbon monoxide, sulfur, and particulates will also be reduced compared to the amounts emitted by pure diesel.

Sources: http://www.earthtimes.org/articles/show/news_press_release,249658.shtmlhttp://nyc.tristatebiodiesel.com/freshdirect07.pdf

Farmer Co-op to Supply Grass Material for Electricity, Heat Generation

Four hundred farmers in western Missouri and eastern Kansas have formed a co-op to supply a pellet plant with cellulosic material such as switchgrass, corn stover, and out-of-condition hay.  The Show Me Energy Cooperative is the country’s first producer-owned biomass cooperative according to founder Steve Flick, and provides a new economic opportunity for farmers with marginal land.  "It's a fantastic idea because these perennial crops require no tillage or anything after establishment, and they create a wonderful root structure," said Dr. William Casady, an associate professor of agricultural engineering at the University of Missouri Extension. "These crops will grow on these marginal soils and help protect them."

Montreal-based Evergreen BioFuels Inc. will soon open a $6.5 million plant to convert the co-op’s raw materials into dense, inch-long “Power Pellets”.  At least half of the 100,000 tons of Power Pellets produced will be co-fired with coal to generate electricity.  "Our goal is to produce millions of tons of renewable energy pellets to displace coal use,” said Mark Drisdelle, CEO of Evergreen BioFuels.  “If adopted on a global scale, this has the potential to displace billions of tons of greenhouse gases, which are responsible for today's climate change crisis.”  The pellets will also be used to heat about 20,000 homes and business.

Sources: http://archive.columbiatribune.com/2008/jan/20080109busi001.asp
http://www.reuters.com/article/pressRelease/idUS145218+10-Dec-2007+BW20071210

Japan Ministry of Agriculture Announces Support for Biofuel Projects

On January 25, Japan’s Ministry of Agriculture announced its budget to support the development of a biobased fuel and chemical industry.  Making use of Japan’s vast forest resources, up to 1 billion yen (approximately $9.3 million) of the next fiscal year’s budget will be dedicated to wood-based ethanol projects.  “We’re looking for a cellulosic technology using enzymes and yeasts to cut down the size of such a plant,” said Satoshi Ishihara, director of the technology development office at the Ministry’s Forest Agency.  Also announced was a plan to spend 3.2 billion yen to support consortiums of farmers, engineers, and regional governments to produce ethanol from other cellulosic material, such as rice stems, and use it locally.

Japan currently has one commercial cellulosic ethanol plant in Osaka that uses waste wood collected from construction sites.

Source: http://www.reuters.com/article/environmentNews/idUSSP32569220080128

Use of Camelina for Biodiesel Production Expanding in Montana

Federal biodiesel production tax credits have encouraged farmers in Montana to plant more camelina, a locally-appropriate feedstock related to canola and mustard.  According to a Montana State University study, 20,000 acres were planted with the oilseed crop, which can grow on marginal land and requires minimal water and nutrient inputs, two years ago.  Last year, that number had increased to 50,000 acres.

Section 12321 of the Senate farm bill expands the definition of agri-biodiesel to make camelina-derived biodiesel eligible for the $1.00 per gallon production tax credit.  The Senate Farm Bill also would make camelina eligible for certain farm supports and would establish a camelina pilot insurance program.  The House version of the farm bill does not include any provisions specific to camelina, and it remains to be seen what the final bill will contain after it goes to conference between the two chambers.

The state of Montana is taking steps to grow its local camelina industry.  Montana’s Agro Energy Plan, funded by a Workforce Innovation in Regional Economic Development (WIRED) grant from the U.S. Department of Labor, reimburses first-time camelina growers up to $1.30 per pound.

Seattle-based Targeted Growth and Houston-based Green Earth Fuels have formed a joint venture company called Sustainable Oils to take advantage of this regional feedstock.  "We have created a better feedstock for biodiesel," said Tom Todaro, CEO of Targeted Growth. "Camelina can be rotated with current Montana crops, it grows in land with lower agricultural value, and it doesn't significantly increase the use of fertilizer or irrigation water."  Sustainable Oils plans to open a 100 million gallon per year biodiesel production plant in Montana by 2010, using camelina as its primary feedstock.

Sources: Richert, Catharine.  “Camelina Poised to Collect Big Farm Bill Credits.”  CQ Weekly.  Jan 21, 2008.
http://dli.mt.gov/wired/01152008SeedReim.pdf (pdf format)
http://media.cleantech.com/2113/targeted-growth-green-fuels-form-biodiesel-venture

Blue Sky Awards Nominations Now Open

WestStart-CALSTART, a non-profit organization that works with the public and private sectors to develop advanced transportation technologies, is accepting nominations for its 2008 Blue Sky Awards.  The awards are designed to recognize leadership and innovation in implementing clean, sustainable transportation options and bringing new vehicle technologies to market.  Among the criteria being evaluated are energy efficiency, greenhouse gas emissions, and technological sustainability.  Nominations are due by March 31, 2008 and more information is available at http://www.calstart.org/info/bluesky/BSA_2008.php.

Entergy Offers Grants for Environmental Projects

Entergy Corporation, an integrated energy company, has announced it is accepting applications online for the company's ninth annual Environmental Stewardship Grant program. This program provides support to community-based projects that address energy efficiency and provide sustainable solutions to preserve the environment. Priority is placed on projects in locations where Entergy has customers and/or employees, especially portions of Arkansas, Louisiana, Massachusetts, Michigan, Mississippi, New Hampshire, New York, Texas, and Vermont.

Applicants must be an established organization with a mission or charter consistent with improving the environment, and must also have 501(c)(3) tax-exempt status. Projects should improve or address a significant environmental need in the region. This year, Entergy has increased the total amount of grant money available by 40 percent to $350,000, up from $250,000 in 2007. While grants typically range between $5,000 and $25,000 each, more may be awarded for worthy projects. Applications are due by March 10, 2008. More information and the online application are available at http://www.entergy.com.

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.