VecoPlan — complete systems for shredding, screening, separation, conveying, metered feeding of biomass prior to conversion to advanced biofuels

West Salem — Introducing WSM BioPrep — Biomass Feedstock Preparation Machines Systems

Southern Company’s merchant subsidiary announced plans this week to develop a 131 megawatt photovoltaic solar project—by far the largest on the East Coast—in Georgia’s Taylir County. The project by Southern Power will sell power under…

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E85 ethanol is becoming a popular fuel in Iowa. The Iowa Renewable Fuels Association (IRFA) says motorists in the state bought more than 3.3 million gallons of E85 in the third quarter of 2014, the third highest E85 sales in any quarter on record, and a more than 350,000 gallon increase (12 percent) over the second quarter of 2014.

“It’s encouraging to see motorists stepping up to improve air quality in Iowa while taking advantage of attractive E85 prices in the third quarter of 2014,” stated IRFA Executive Director Monte Shaw. “Price is often a motivator for consumers, but there are many reasons to use E85, including the energy security, environmental and local economic development benefits. And, while falling petroleum prices may curtail E85 sales in the fourth quarter, a record setting year for E85 sales in Iowa is still within reach.”

In Iowa, E85 is a fuel blend containing between 70 and 85 percent ethanol. E85 is currently sold at more than 200 fueling sites in Iowa, and can be used in all flex-fuel vehicles (FFV). To determine if your vehicle can use E85, please check your owner’s manual, the vehicle’s fuel cap, or click here for a list of FFVs.

A list of E85 retailers in Iowa is available here.

POET-DSM is commending its partners in a cellulosic ethanol venture. This company news release says POET is praising Suomen Bioetanoli Oy and the government of Finland after the Finnish government announced a 30 million euros grant to Suomen Bioetanoli Oy to build a plant that will convert wheat straw into about 24 million gallons of ethanol annually.

“Suomen Bioetanoli Oy is taking a bold step forward in growing Europe’s bioeconomy and expanding our sources for transportation fuel,” said Rob van Leen, Chairman of the POET-DSM Board. “Additionally, the grant award shows Finland’s firm commitment to growing sustainable energy production. Our joint venture partners look forward to working with Suomen Bioetanoli Oy to make commercial cellulosic bioethanol a reality in Finland.”

POET and DSM are in discussions with Suomen Bioetanoli Oy on how to utilize process, yeast and enzyme technology from the respective companies for the conversion of cellulose to ethanol.

Those who advocate for ethanol are refuting an academic report about the green fuel. The Renewable Fuels Association (RFA) is countering conclusions made by researchers at the University of Minnesota claiming that ethanol is more harmful to humans and the environment than gasoline. RFA examined the research, recently published in the “Proceedings of the National Academy of Sciences,” finding it ran counter to real-world data, contradicted current lifecycle modeling and research, and omitted key variables when determining the environmental impact of electric vehicles and gasoline, ultimately undermining the credibility of the study.

RFA notes that the paper’s conclusions “…stand at odds with real-world data showing decreases in ozone and PM2.5 concentrations…” and that “Data from 222 EPA sensing sites show that ozone and PM2.5 concentrations have trended downward during the period in which the use of ethanol-blended gasoline has dramatically increased.”

The RFA response goes on to show that “On a full lifecycle basis, the study’s results are contradictory to the results from the Department of Energy’s latest GREET model” and that “There is a substantial body of evidence proving that ethanol reduces both exhaust hydrocarbons and CO emissions, and thus can help reduce the formation of ground-level ozone.”

The study’s reliability is also called into question as it omitted key factors when reaching conclusions on the environmental impact of gasoline and electric vehicles. RFA points out that the University of Minnesota conclusion “…excludes NOx and SOx emissions associated with crude oil extraction, a decision that grossly underrepresents the actual lifecycle emissions impacts of gasoline.” RFA concluded, “Omitting key emissions sources from the lifecycle assessment of EVs and crude oil inappropriately skews the paper’s results for the overall emissions impacts of these fuels and vehicles.”

You can read all of the RFA’s response here.

In Iowa, Renewable Energy Group and Neste Oil have entered into a Settlement and License Agreement whereby the parties have settled Neste’s US patent infringement lawsuit against REG and REG’s Singapore patent infringement lawsuit against Neste and REG has licensed certain Neste Oil NEXBTL technology and intellectual property rights for use at REG Geismar.

REG became the owner of the former Dynamic Fuels facility in Geismar, Louisiana in June, 2014.  REG inherited the US and Singapore patent lawsuits that are now settled as part of the acquisitions of Syntroleum Corporation and Dynamic Fuels.

The settlement reflects the parties’ conclusion that continued pursuit of the US and Singapore patent infringement lawsuits was counterproductive and the parties desire for a mutually agreeable resolution.  With the disputes now resolved, REG and Neste Oil look forward to working together to grow and expand the renewable fuels and chemicals marketplace globally. The settlement is not an admission by either party as to the validity or infringement by one party of the other party’s patents.

Reaction from the parties

“We are happy to have reached a satisfactory resolution with Neste Oil to the US patent infringement lawsuit we inherited in the acquisitions of Syntroleum and Dynamic Fuels. This agreement resolves our dispute with Neste regarding the alleged infringement of Neste’s patents by REG Geismar.  Through these discussions with Neste, we discovered useful Neste intellectual property that through this license we will now be able to use to enhance operational flexibility for REG Geismar,” said Eric Bowen, REG Vice President, Corporate Business Development Legal Affairs.

“We are happy that our prolonged patent disputes with respect to renewable diesel have been satisfactorily resolved through constructive discussions with another respected biofuel producer,” said Lars Peter Lindfors, Senior VP, Technology at Neste Oil.

In Brazil, the National Bank for Economic and Social Development (BNDES) approved $223.38 in financing for four sugarcane projects.

The largest announced financing is for Abengoa Bioenergy SA Agribusiness, which will receive $116.8M to implement its second-generation ethanol plant. The new project will be integrated with the Usina São Luiz first-generation ethanol plant in Pirassununga, in São Paulo state.

The project will result in the fourth 2G ethanol plant in Brazil (after the first two from GranBio, and a new plant just commissioned by Raizen). The plant will have a nominal capacity of 64 million liters per year (16.93 million gallons).

With this new investment, the capacity 2G ethanol production in Brazil will reach almost 200 million liters per year, BNDES said.

BNDES’ investment background

In February, BNDES approved $618 million in loans to promote innovation in sugarcane-based ethanol in partnership with the state research-financing agency Finep. The 10-year loans will be offered at 4% interest.

In September 2013, BNDES approved a $91 million loan for Raizen to build a second-generation ethanol plant. The 40 million liter-per-year, bagasse-to-ethanol plant is set to come online in 2015. It will be located in Piracicaba, southeastern Sao Paulo

In May 2013, BNDES approved a $150 million loan in addition to its funding scheme for GranBio’s second-generation ethanol plant in São Miguel dos Campos in the northeastern state of Alagoas. The bank’s investment arm is buying a 15% equity stake in the company for about $300 million, which was announced in December. This first facility will produce 85 million liters of ethanol annually from bagasse.

BNDES’s big leap into financing cellulosic ethanol dates back to 2011, when the development agency offered $1 billion to the Brazilian Innovation Agency to fund research and development into second generation ethanol. The loans would be part of the government’s Joint Plan to Support Industrial Technological Innovation in the sugar-based Energy and Chemical Sectors where it will support companies working on turning sugarcane biomass and sugarcane ethanol for use in diverse industrial applications over the next three years.

More on the story.

Today, December 19, marks the seventh anniversary of the signing into law of the Energy Independence and Security Act of 2007 which expanded the Renewable Fuel Standard (RFS).

In this Ethanol Report, Renewable Fuels Association (RFA) president and CEO Bob Dinneen remembers that day seven years ago and talks about its accomplishments so far and how EPA needs to move ahead with the law as written. He also comments on the report out this week from the Bipartisan Policy Center recommending changes to the RFS.

Ethanol Report on RFS Anniversary

News out this week that Chinese officials committed to Agriculture Secretary Vilsack that the ban on imports of U.S. distillers grains (DDGs) containing the MIR 162 trait will be dropped is being met with optimism by the ethanol industry.

“While we are still awaiting the official regulatory announcement from China regarding the approval of this policy, it is welcome news for America’s ethanol industry,” said Growth Energy CEO Tom Buis. “I would like to personally thank Secretary Vilsack for his leadership and steadfast commitment to ensuring a resolution to this issue. Additionally, the many hardworking professionals of the USDA and the USTR deserve praise for their dedicated work behind the scenes and for their persistence in working with their Chinese colleagues to re-establish market access for U.S. DDGs.”

“China has always been somewhat schizophrenic with our protein feed,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen in an interview today. “There are times when they desperately want it and can’t get enough of it, there are times when they will erect these mysterious trade barriers so that we can’t get our product in there … We think we may be getting through it now.”

According to the office of the U.S. Trade Representative, one of the outcomes of the U.S.-China Joint Commission on Commerce and Trade meetings was in the area of agricultural exports related to biotechnology traits. “China announced that it would approve the importation of new biotechnology varieties of U.S. soybeans and corn ­… and also that it would pursue a regular dialogue with the United States focused on the benefits of the increased use of innovative technologies in agriculture, for both the United States and China.”

A proposed biodiesel plant for York, Pennsylvania, is closer to reality, as the city Redevelopment Authority (RDA) green-lighted a development agreement with two entrepreneurs who want to turn a long-vacant, RDA-owned industrial building into a biodiesel plant. This article from the York Daily Record says Britta Schwab and James Munene can buy the RDA-owned building for $1,000, if they also get the financing for the refinery.

Schwab and Munene will have to satisfy the RDA that they have financing lined up for the project, including $114,000 they told the authority it will take to renovate the 10,000-square-foot building. They also would have to meet other conditions spelled out in the yet-to-be negotiated development agreement, including submitting plans detailing the renovations they plan for the building, said Shilvosky Buffaloe, the city’s deputy director of economic development.

Schwab and Munene, in their presentation to the authority on Wednesday, said they would create five to 10 new jobs for workers to produce biofuel from used restaurant cooking oil and grease. They plan to provide jobs to ex-offenders, among others, at a time when many in York struggle to find work.

“We’re very excited to have the opportunity to do business in York City,” Schwab said Wednesday.

When completed, the refinery could produce up to 5,000 gallons of fuel a day by fall 2015.