Vermont heating oil to contain biodiesel

Vermont continues the momentum for clean air policies in the North East by passing a requirement for renewable, cleaner-burning biodiesel to be used in home heating oil throughout the state.

Governor Peter Shumlin signed the Vermont Energy Act of 2011, which furthers the state's efforts to promote a green economy and energy independence. The broad-based energy legislation establishes low sulfur and biodiesel requirements for all heating oil sold in Vermont, timed to match implementation of similar legislation in surrounding states.

"This bill speaks to the North East region's continued commitment to using renewable, cleaner-burning fuels to heat their homes and businesses," said Shelby Neal, State Governmental Affairs Director for the National Biodiesel Board. "The Vermont policy builds on the strong partnership created between the home heating oil industry and the biodiesel industry to provide a more sustainable, cleaner energy solution through Bioheat^TM."

Biodiesel blends in home heating oil, a product called Bioheat, reduce particulate emissions, unburned hydrocarbons, and soot, which combine to greatly improve air quality in and around the home.

"The Legislature and Governor Shumlin backed this legislation all the way," said Netaka White, Secretary of Renewable Energy Vermont, and Bioenergy Program Director at the Vermont Sustainable Jobs Fund. "We got it done in Vermont; now it's up to the Congress to make sure every gallon of heating oil in the country contains ultra-low sulfur and clean, renewable biodiesel."

The legislation requires all heating oil sold in the state to contain a three percent biodiesel blend (B3) beginning July 2012, increasing to seven percent (B7) by 2016. Vermont becomes the ninth state in the nation to pass a statewide biodiesel requirement.

Biodiesel is an advanced biofuel made from readily available, renewable resources. It is a domestic, sustainable, cleaner-burning diesel replacement fuel that meets strict quality specifications.

UPS Begins Using Biodiesel Blend at Major U.S. Hub

What can Brown do for you?  For a start, it's making your world greener by using cleaner burning biodiesel.  The United Parcel Service began using biodiesel blends at its most vital hub in Louisville, Kentucky this month.

"There is a finite amount of petroleum-based fuel available from our planet so it is important that UPS and other companies invest in ways to use alternative fuels and technologies, including biodiesel," said Scott Wicker, UPS Chief Sustainability officer. "This project helps us reduce our dependence on fossil fuels with the added benefit that it will also reduce air pollution and carbon emissions."

UPS recently installed a biodiesel fuel tank and fueling station at its Worldport facility. It will allow fueling operators to blend specified percentages of biodiesel "on the fly," starting with 5 percent biodiesel (B5), and working up to 20 percent biodiesel (B20).

The single most important point in all of UPS's global operation, Worldport:

• Processes 416 thousand packages an hour  
• Is the size of 80 football fields
• Turns 100 aircraft a day

The 30,000 gallon biodiesel tank and station at Worldport fuels nearly 200 vehicles and diesel equipment, most of which help load packages on and off the planes.  

The National Biodiesel Board called UPS's switch to biodiesel monumental.  

"For a giant like UPS to use biodiesel is not only an outstanding vote of confidence for biodiesel, but an example of how America's first advanced biofuel will fuel the drive towards genuine corporate sustainability," said Joe Jobe, CEO of the National Biodiesel Board.  

Biodiesel blends of up to 20 percent can be used in any diesel engine without modifications, making it one of the most cost-effective ways to clean up heavy duty equipment.  

"Biodiesel supports green jobs and domestic energy security here and nationally, and we commend UPS for making biodiesel a part of its commitment to sustainability," said Melissa Howell, executive director of the Kentucky Clean Fuels Coalition.  

Biodiesel is an advanced biofuel made from readily available, renewable resources. It is drop-in diesel fuel replacement that reduces greenhouse gas by 80 percent, without negatively impacting land use or the food supply.

Iowa State Researchers Scale Up Process That Could Improve Economics Of Ethanol Production

Iowa State University's Hans van Leeuwen has moved his research team's award-winning idea for improving ethanol production from a laboratory to a pilot plant.

Now he knows the idea, which produces a new animal feed and cleans water that can be recycled back into ethanol production, works more efficiently in batches of up to 350 gallons than on a lab bench.

"We're learning we can reliably produce good quality and good quantities," said van Leeuwen, Iowa State's Vlasta Klima Balloun Professor of Engineering in the department of civil, construction and environmental engineering.

What van Leeuwen and a team of Iowa State researchers are producing is a fungus, Rhizopus oligosporus, that makes a high-quality, high-protein animal feed from the leftovers of ethanol production. The process of growing the fungus also cleans water from ethanol production so that it can be recycled back into fuel production. And the process, called MycoMeal, could one day produce a low-cost nutritional supplement for people.

The project has two patents pending and has won several major awards, including a 2008 R&D 100 Award presented by R&D Magazine, the 2008 Grand Prize for University Research presented by the American Academy of Environmental Engineers and a 2011 Honor Award in University Research from the academy. The project also contributed to R&D Magazine naming van Leeuwen its 2009 Innovator of the Year.

The research team working on the project is led by van Leeuwen and includes Nick Gabler and Mike Persia, assistant professors of animal science; Mary Rasmussen, a post-doctoral research associate in food science and human nutrition; Daniel Erickson, Christopher Koza and Debjani Mitra, graduate students; and Brandon Caldwell, a graduate of Iowa State. The project is supported by a three-year, $450,000 grant from the Iowa Energy Center and a Smithfield grant from the Office of the Iowa Attorney General. Lincolnway Energy of Nevada, Cellencor Corp. of Ames and Iowa State's Center for Crops Utilization Research and BioCentury Research Farm are also supporting the project.

Here's how their process works to improve dry-grind ethanol production:

For every gallon of ethanol produced, there are about five gallons of leftovers known as stillage. The stillage contains solids and other organic material. Most of the solids are removed by centrifugation and dried into distillers dried grains that are sold as livestock feed, primarily for cattle.

The remaining liquid, known as thin stillage, still contains some solids, a variety of organic compounds and enzymes. Because the compounds and solids can interfere with ethanol production, only about 50 percent of thin stillage can be recycled back into ethanol production. The rest is evaporated and blended with distillers dried grains to produce distillers dried grains with solubles.

The researchers add fungus to the thin stillage and it feeds and grows into a thick mass in less than a day – van Leeuwen calls it "lightning-speed farming." The fungus removes about 60 percent of the organic material and most of the solids, allowing the water and enzymes in the thin stillage to be recycled back into production.

The fungus is then harvested and dried as animal feed that's rich in protein, certain essential amino acids and other nutrients. It can also be blended with distillers dried grains to boost its value as a livestock feed and make it more suitable for feeding hogs and chickens.

Van Leeuwen said the production technology can save United States ethanol producers up to $800 million a year in energy costs. He also said the technology can produce ethanol co-products worth another $800 million or more per year, depending on how it is used and marketed.

Now that the project has moved from a campus lab to the Iowa Energy Center's BECON facility in Nevada, van Leeuwen said researchers are working to improve the process at larger scales.

"We're adding and subtracting, doing things differently and redesigning our process all the time," he said.

Even so, the process has developed enough that researchers can use simple screens to harvest pellets of the fungus from the project's 20-foot high reactor. They're feeding some of the fungus to chickens and will soon start feeding tests with hogs. A next step could be testing the fungus for human consumption. (University leaders have tried the fungi and researchers regularly eat it, van Leeuwen said.)

As the project has successfully scaled up, so has van Leeuwen's optimism that the process could help the biofuels industry.

"Implementation of this process addresses criticism of biofuels by substantially lowering energy inputs and by increasing the production of nutritious animal feed," van Leeuwen said. "The MycoMeal process could truly revolutionize the biofuels industry."

Thunderbirds Become First Department of Defense Aerial Team to Fly on Alternative Fuel

Sustainable Oils announced today that hydrotreated renewable jet fuel (HRJ) made from its camelina will power two Air Force F-16 aircraft as part of a Thunderbirds demonstration flight today at the Joint Services Open House. It is the first time renewable fuels have ever been used as part of a Department of Defense Aerial Team show. The camelina was grown and harvested in Montana, and refined into renewable jet fuel using technology from UOP, a Honeywell company.

"Today's flights mark yet another successful milestone in the commercialization of camelina-based aviation fuel," said Tom Todaro, CEO of Sustainable Oils. "In test after test, camelina-based biofuel continues to perform the same as, or better than, its petroleum counterparts. We, and our growing partners across the country, will continue to support the military's efforts to develop new, sustainable and domestic sources of jet fuel."

According to the Air Force, it has tested and certified biofuel as a 50-percent blend with regular jet fuel in the A-10 Thunderbolt II, the F-15 Eagle, the C-17 Globemaster III, and the F-22 Raptor to date. Air Force officials have stated that fleetwide certification is on track for completion in 2013. Sustainable Oils has provided nearly 500,000 gallons of camelina-based HRJ to multiple branches of the US military for its certification programs, making it the most heavily tested alternative fuel feedstock.

Camelina is the most readily available renewable fuel feedstock that meets the Air Force's criteria given that it does not compete with food crops, has been proven to reduce carbon emissions by more than 70 percent, has naturally high oil content, and requires less fertilizer and herbicides. It is an excellent rotation crop with wheat, and it can also grow on marginal land.

Landfill Gas Powers GM Orion Assembly Plant

When production of the fuel-efficient 2012 Chevrolet Sonic and Buick Verano begin this fall, 40 percent of the energy to power the General Motors Orion Assembly Plant where they are built will come from burning landfill gas created nearby.  

The use of the landfill gas, which saves GM $1.1 million a year in energy costs, also cuts the amount of greenhouse gases, sulfur dioxide and nitrogen oxides released in the air. During most of the year, the system runs exclusively on landfill gas primarily to generate steam for heating and compressed air.

"Orion is a great example of the latest technologies employed by GM manufacturing around the globe," said Eric Stevens, GM vice president of Global Manufacturing Engineering. "As we converted the facility to support the small car program, we took every opportunity to engineer in flexibility and lean manufacturing concepts."

Use of landfill gas is just one of the sustainable methods that lessen the plant's environmental impact. Others include:

• Lighting system upgrades that saved more than 5,944 megawatts of electricity per year and $430,000 while also cutting CO2 by 3,676 metric tons. Plant workers track energy use on an hourly basis with sophisticated software, enabling them to see real-time usage by department to improve their equipment shut-down activities.

• Plant workers reduced total waste by 26 percent from 2005 to 2009.

• An upgraded paint shop is heated by natural and landfill gas, and uses half of the energy per vehicle of the one it replaced. Both the Sonic and Verano use a new eco paint that eliminates the need for a primer oven and increases quality and appearance due to waterborne base coats.

"Environmentally friendly choices often translate to higher efficiency and quality," said Maureen Midgley, GM executive director of Global Manufacturing Engineering. "Take our new paint shop – it was designed for optimal efficiency and delivers premium paint appearance for our vehicles.

"With these improvements, we'll reduce greenhouse gas production by about 80,000 metric tons at a full three-shift capacity," Midgley said. "This is equivalent to the emissions from 14,000 vehicles per year, and the electricity reduction equals at the output from 3,500 homes."

Some of the diverted material is directed to the cars being made. Recycled cardboard packaging from Orion and other GM plants and used denim are part of the Verano's sound insulation.

Orion also has embraced flexible manufacturing, allowing it to quickly respond to changes in customer preferences. Production lines were reworked, creating more space to house material onsite that once took up space in other buildings. This approach reduces the overall environmental impact of the plant's material systems, but it also provides significant cost savings to the overall small car program.

The 2012 turbocharged Chevrolet Sonic is a small car available in five-door and sedan models.

The 2012 Buick Verano compact sedan includes 10 standard air bags, an available heated steering wheel and a next-generation radio system with OnStar-powered connectivity.  

Production of both vehicles will begin at Orion later this fall. They will be on sale by the end of the year.

ZeaChem Signs Feedstock Agreement with GreenWood Tree Farms to Supply its First Commercial Biorefinery

ZeaChem Inc. announced today that it has signed a long-term binding term sheet with GreenWood Tree Farm Fund (GTFF), managed by GreenWood Resources (GWR), to supply hybrid poplar woody biomass for its first commercial cellulosic biorefinery. The combination of GTFF’s existing tree farms in close proximity to the biorefinery, GWR’s world leadership in development and management of tree plantations, and ZeaChem’s highly efficient biorefinery technology will enable the supply of low-cost fermentable sugars used in the production of advanced biofuels and bio-based chemicals for years to come. ZeaChem will integrate feedstock from a portion of GTFF’s residual fiber with local agricultural residue suppliers to achieve feedstock costs 50% less compared to Brazilian sugar cane and 80% less compared to corn based processes. Through this combination of forest and agricultural residuals, ZeaChem has secured 100% of the feedstock supply for the first commercial biorefinery.

Under the agreement, GTFF will be the primary feedstock supplier for ZeaChem’s first commercial biorefinery. GTFF will supply cellulosic biomass from its existing poplar plantations to the biorefinery, offering new markets for its wood products. ZeaChem’s first commercial biorefinery is expected to have capacity of 25M gallons per year (GPY) and to be located in Boardman, Oregon.

“This landmark feedstock agreement represents a major milestone on the road to developing ZeaChem’s first commercial production facility and to become the world leader in low cost production of advanced biofuels and bio-based chemicals,” said Jim Imbler, president and chief executive officer of ZeaChem. “We are proud to have GreenWood Resources, a leading supplier of economical and sustainable cellulosic feedstock, as a partner in our commercial operation. The model we have developed provides a significant strategic advantage and is something that GWR and ZeaChem will seek to replicate around the world.”

“This agreement with ZeaChem is a significant step for GTFF and for GreenWood Resources into new markets and end-uses that closely align with our sustainability goals,” said Jeff Nuss, president and chief executive officer of GreenWood Resources. “We believe that hybrid poplars are the ideal feedstock for advanced biofuels and bio-based chemicals and look forward to continuing to grow with ZeaChem.”

ZeaChem is currently constructing a 250,000 gallon-per-year demonstration-scale biorefinery in Boardman, Ore. An existing GTFF hybrid poplar tree plantation near Boardman supplies feedstock to the facility, minimizing the transportation and logistics costs of cellulosic biofuel and bio-based chemical production. Hybrid poplar trees are an excellent cellulosic feedstock because of their high yield per acre, short rotation and ability to regenerate after harvest, providing superior economic and environmental benefits. Additional advantages of woody biomass include the ability to aggregate forestry land and the forestry industry’s common practice of signing long-term contracts.

ZeaChem’s demonstration plant in Boardman, Ore. will begin to come online in 2011. The company is now developing commercial biorefineries for the production of advanced biofuels and bio-based chemicals.

ICM Files Patent Application for Next Generation Corn Oil Separation System

ICM, Inc. announced today that it has filed a non-provisional patent application with the U.S. Patent and Trademark Office (USPTO) and an international  patent application under the Patent Cooperation Treaty (PCT) with the U.S. as receiving office, for ICM's newest development in the field of corn oil separation, its Advanced Oil System.  A petition to request participation in the USPTO's "Green Technology Pilot Program" was also filed, which allows for accelerated examination and issuance for "green" technologies.

The Advanced Oil System is ICM’s answer to today’s oil extraction challenges. The next-generation technology solves the issue of reduced corn oil yield due to emulsification -- the biggest barrier ICM and other technology providers have encountered in delivering consistently high oil recovery rates.   ICM’s proprietary Advanced Oil System design uses a novel approach to deliver a much higher conversion rate than is currently possible with first-generation oil recovery technology. 

The Advanced Oil System consists of separate skid mounted units that can be installed at plants without oil extraction technology, or as an add-on to plants that already have invested in ICM's first generation corn oil extraction equipment.   ICM is deploying its first commercial Advanced Oil System at an ICM-designed 110 MGY ethanol plant; the system was commissioned last week and is currently operating.

Chris Mitchell, Executive Vice-President of ICM stated, “We have focused our efforts on developing solutions that deliver quick payback and ongoing value-added co-product streams to the renewable energy industry. We believe our competitive advantage comes from providing our customers with a competitive advantage of their own—the highest-yielding and most reliable oil separation technology available.” 

ICM's General Counsel, Brian Burris, confirmed that the Advanced Oil System™ design and method clearly fall outside all patent claims of GreenShift Corporation's patents.  "Our patent pending system does not separate oil directly from the concentrated thin stillage.  ICM's system implements special processing to release oil from an emulsion concentrate, which results in a higher recovery of corn oil from the ethanol process." ICM now has two differentiated solutions that allow the operator to control the quantity of oil removed from the process: the Tricanter Oil Separation System and the Advanced Oil System.

Lowe's Selects Sungevity for Residential Solar Partnership

Lowe's, the world's second largest home improvement retailer, and Sungevity, the nation's fastest growing residential solar company today announced a new agreement that will offer homeowners the easiest and most affordable solar solutions in the marketplace, marking a significant step in the mainstream adoption of residential solar.  Through the agreement, Lowe's will provide consumers with Sungevity's quick, easy and proprietary iQuote, a process that utilizes satellite images and aerial photography to calculate a same-day, firm installation estimate, eliminating the need for a home visit.  As part of the interactive, in-store experience, consumers will be able to view a rendering of the proposed installation and get a firm understanding of the cost-savings related to Sungevity's innovative solar lease program.  Customers typically experience an immediate savings on their electricity bills through Sungevity's solar lease, which includes monitoring, maintenance, repairs, insurance, and a money-back performance guarantee. Additionally, as part of the agreement, Lowe's has taken an equity position in Sungevity.

"I am thrilled about the potential of reaching Lowe's 15 million weekly customers at their more than 1,750 retail locations, with Sungevity's services," said Andrew Birch, chief executive officer, Sungevity.  "This partnership marks a major acceleration point in our mission to make solar power easily accessible and affordable to homeowners nationwide."

"Lowe's has always delivered innovative energy solutions for our customers and we are seeing an increased demand for solar solutions," explained Patti Price, senior vice-president, merchandising, Lowe's.  "Lowe's new partnership with Sungevity responds to customer demand by providing a convenient and affordable process for going solar."

The partnership will commence with interactive Sungevity branded displays in select Lowe's stores, beginning Summer 2011, and continue to roll-out at all Lowe's stores in states where Sungevity provides services.  Sungevity currently operates in eight states, including Arizona, California, Colorado, Delaware, Maryland, Massachusetts, New Jersey and New York. 

U.S. Department of Energy Awards Metabolix $6 Million Grant to Develop Renewable Biofuels

Metabolix, Inc., a bioscience company focused on developing clean, sustainable solutions for plastics, chemicals and energy, today announced that the U.S. Department of Energy (DOE) has awarded the company a $6 million grant. The grant is part of the Obama administration’s $42 million research and development project fund to support the production of biofuels, bioenergy and high-value biobased products. Metabolix will use the funding to continue research of engineered switchgrass in an effort to provide a sustainable alternative to petroleum feedstocks.

For several years, Metabolix has advanced its biomass biorefinery platform using switchgrass. Under the new grant agreement, the company plans to attempt to further enhance expression of polyhydroxyalkanoates (PHAs) in switchgrass to allow co-production of chemicals and densified biomass. In addition to attempting to produce densified biomass with transportation and fuel properties closely matching coal, Metabolix also plans to further develop and scale-up its selective thermolysis process which utilizes moderate temperature to recover a new platform chemical directly from PHA containing switchgrass. This platform chemical, crotonic acid, can be readily converted through simple known chemical conversion steps to a range of commodity chemical intermediates including butanol and propylene.

“The DOE funding is another exciting step towards creating a bioenergy infrastructure that has the potential to reduce our dependence on foreign oil and increase economic development in America,” said Oliver Peoples, Ph.D., Chief Scientific Officer and vice president of Research and Development at Metabolix.

SG Biofuels Signs Customers for 250,000 Acres of JMax Hybrid Jatropha Seed

SG Biofuels today announced it has signed customers for the deployment of 250,000 acres of Jatropha using its JMax hybrid seeds.  Jatropha is a non-edible energy crop that produces large volumes of sustainable plant oil used for biodiesel, bio jet fuel and specialty chemicals.  The JMax hybrid seeds on average provide double the yield of existing commercial varieties planted in similar conditions, resulting in greater uniformity and vigor while significantly reducing seed handling and deployment costs.

"Energy companies, governments and growers are recognizing that we have entered a new era for Jatropha based on the time-honored principals of crop science, breeding, biotechnology and proper agronomics," said Kirk Haney, president and chief executive officer.  "In addition to our signed customers, we have a large global pipeline totaling more than 1 million acres of planned Jatropha projects worldwide."

The company is adding to its Jatropha crop improvement network by deploying JMax development centers in multiple locations around the world where SG Biofuels will optimize elite hybrid varieties of Jatropha that are well adapted to the specific growing conditions of its customers.  The centers feature hybrid material from the company's germplasm library totaling more than 12,000 unique genotypes.  

"Following four years of advancements, we are now able to produce high quality, elite hybrid seeds of Jatropha that far surpass the productivity and profitability of unimproved varieties," said Miguel Motta, vice president of marketing and strategy.  "Hybrid seed technology is resonating with customers because they are assured higher, more consistent yields and an economic model that truly scales."

Hybrid seed production is considered superior to other mass propagation techniques because of lower costs and improved plant performance.  Hybrid seeds have historically been responsible for significant increases in agricultural production and profitability.  Since the introduction of hybrid corn in the 1940's, along with improved agronomic practices, the average U.S. bushel per acre has increased by more than 400 percent from 30 to approximately 140.

Through its growing network of JMax centers, SG Biofuels continues to expand the regions for which JMax hybrid seeds are available.

AE Biofuels Restarts 55 Million Gallon Per Year Ethanol Production Facility In Keyes, California

AE Biofuels, Inc. announced this week that its wholly owned ethanol subsidiary AE Advanced Fuels Keyes, Inc. (AE Keyes) has restarted operations at the 55 million gallon per year ethanol production facility located in Keyes, California. Approximately 50 full time employees have been hired at the AE Keyes facility.

The original $130 million construction and commissioning of the plant was completed in November 2008 by Cilion, Inc. In early 2009 the plant was closed due to technical and market issues. AE Keyes took possession of the facility under a project agreement with Cilion in March 2010, signed a facility lease for up to five years, and funded $8 million of financing to retrofit and restart the plant.

The Keyes plant is a leader in environmentally responsible ethanol production with a 2.6:1 positive energy balance and near zero water discharge. In addition, the plant’s natural gas and steam powered turbine cogeneration unit generates all of the operating electric needs of the plant (4.3 megawatts), thus eliminating dependence on the state’s electrical grid.

AE Keyes was recently awarded a $1.88 million matching grant from the California Energy Commission (CEC) to accelerate the commercial implementation of AE Biofuels’ patent-pending, enzyme based, cellulosic ethanol production technology. The integrated cellulose/starch pre-commercial facility will be located near the 55 million gallon per year commercial ethanol facility. The CEC grant will enable the company to build upon prior enzyme optimization work conducted at its cellulose/starch pilot facility in Montana which was opened in 2008, and will help the State of California achieve the goals of the Low Carbon Fuel Standard (LCFS).

“The retrofit and restart of the Keyes plant was accomplished by a talented, dedicated management and operations team that has been expanded to more than 50 members,” said Eric McAfee, chairman and CEO of AE Biofuels, Inc. “We’re very pleased that the AE Keyes plant is now fully operational and delivering product to our California biofuels and animal feed customers."

Cellana Receives $5.5 Million USDA and Doe Grant to Develop New Algae-Based Animal Feeds as Algal Biofuel Byproduct

Cellana LLC, a leading developer of algae-based biofuels and bioproducts, has received a three-year $5.5 million grant to develop a protein supplement from algae as a byproduct of algal biofuels production and to demonstrate its nutritional and economic value in livestock feeds.

Funding is provided through the U.S. Department of Agriculture (USDA)'s National Institute of Food and Agriculture (NIFA) and the U.S. Department of Energy (DOE)'s Biomass Program through the Biomass Research and Development Initiative and will help increase the availability of alternative renewable fuels and biobased products to diversify the nation's energy resources. The award was made through a competitive selection process.

Cellana LLC, a subsidiary of Cellana, Inc. (formerly HR BioPetroleum, Inc.), will receive $5,521,173 for the project, titled "Developing a New Generation of Animal Feed Protein Supplements." Under this grant, Cornell University will be conducting large-scale animal feeding trials using algae biomass provided by Cellana to identify the most economical and efficacious strains of algae.

"Cellana is looking forward to providing affordable and nutritious food supplies from its production of marine microalgae. These bioproducts support Cellana's biorefinery business model and can help the livestock industry remain competitive in Hawaii and in other parts of the world," noted Martin Sabarsky, president and CEO of Cellana, Inc.

In addition to the new grant program, Cellana has programs with universities in the U.S. and Norway to test proteins from top candidate strains to replace fishmeal in aquaculture feed. Fishmeal protein, an increasingly unsustainable source of aquaculture feed, has reached its peak in global production and become expensive.

"Cellana is also looking forward to providing a commercially viable supply of renewable biofuel in Hawaii to help it meet its renewable energy goals. All critical elements of the company's algae cultivation technology have been demonstrated at our six-acre facility in Kona and will be incorporated at our proposed commercial plant in Maalaea, Maui. We are on track for this commercial deployment by 2014," Sabarsky added.

Biodiesel leading the way on cleaning up diesel exhaust

In advance of a congressional hearing on diesel emissions Thursday, the National Biodiesel Board (NBB) is highlighting the significant health and air quality improvements from blending biodiesel with petroleum diesel.

Emissions from traditional diesel - primarily from trucking fleets, school buses and other vehicles - are a significant health and air quality concern. In an update to its National-Scale Air Toxics Assessment earlier this year, the Environmental Protection Agency (EPA) cited diesel exhaust as one of the nation's most dangerous pollutants, saying it is "among the substances that may pose the greatest risk to the U.S. population."

Biodiesel is a clean-burning replacement fuel that can be used in existing diesel engines. Made from renewable sources such as vegetable oils, recycled cooking grease and animal fats, it is the first and only commercial-scale fuel widely used today that meets the Environmental Protection Agency's definition as an Advanced Biofuel. Along with significant reductions in greenhouse gas emissions, it dramatically reduces nearly every major toxic air pollutant, according to the EPA.

"Thousands of trucks and buses hit the road every day burning traditional diesel fuel, and using larger amounts of diesel fuel blended with biodiesel is the simplest, most effective way to immediately improve emissions," said Ben Evans, NBB's director of federal communications. "Along with creating U.S. jobs and reducing our reliance on foreign oil, improving air quality is a major reason why domestically produced biodiesel must play a critical role in the nation's fuel mix."

According to the EPA, biodiesel has the following emissions properties compared with petroleum diesel:

• Carbon Monoxide - The exhaust emissions of carbon monoxide (a poisonous gas) from biodiesel are on average 48 percent lower than carbon monoxide emissions from diesel.

• Particulate Matter - Breathing particulate has been shown to be a human health hazard. The exhaust emissions of particulate matter from biodiesel are about 47 percent lower than overall particulate matter emissions from diesel.

• Hydrocarbons - The exhaust emissions of total hydrocarbons (a contributing factor in the localized formation of smog and ozone) are on average 67 percent lower for biodiesel than diesel fuel.

• Sulfur emissions - The exhaust emissions of sulfur oxides and sulfates (major components of acid rain) from biodiesel are essentially eliminated compared to diesel.

• Nitrogen Oxides - NOx emissions from biodiesel increase or decrease depending on the engine family and testing procedures. NOx emissions (a contributing factor in the localized formation of smog and ozone) from pure (100%) biodiesel increase on average by 10 percent. However, biodiesel's lack of sulfur allows the use of NOx control technologies that cannot be used with conventional diesel. Additionally, some companies have successfully developed additives to reduce NOx emissions in biodiesel blends. Biodiesel reduces the health risks associated with petroleum diesel.

• Biodiesel emissions show decreased levels of polycyclic aromatic hydrocarbons (PAH) and nitrated polycyclic aromatic hydrocarbons (nPAH), which have been identified as potential cancer causing compounds. In Health Effects testing, PAH compounds were reduced by 75 to 85 percent, with the exception of benzo(a)anthracene, which was reduced by roughly 50 percent. Targeted nPAH compounds were also reduced dramatically with biodiesel, with 2-nitrofluorene and 1- nitropyrene reduced by 90 percent, and the rest of the nPAH compounds reduced to only trace levels.

Visit the National Biodiesel Board website for the full written testimony submitted to the Senate Committee on Environment and Public Works.

USDA Announces Project to Encourage Development of Next-Generation Biofuels

Agriculture Secretary Tom Vilsack announced today the establishment of the first Biomass Crop Assistance Program (BCAP) Project Area to promote the production of dedicated feedstocks for bioenergy. This project will help spur the development of next-generation biofuels and is part of Obama Administration efforts to protect Americans from rising gas prices by breaking the nation's dependence on foreign oil.

"Reducing our dependence on foreign oil and getting a handle on out of control gas prices will require investments in projects like we are announcing today," said Vilsack. "By encouraging production of feedstocks that can be converted into next-generation biofuels we are boosting the rural economy, creating jobs, contributing to America's energy security and protecting our planet. Investments like this spark creation of new industries and is a key part of our effort to keep America competitive and win the future."

Comprising 39 contiguous counties in Missouri and Kansas, the first BCAP Project Area proposes the enrollment of up to 50,000 acres for establishing a dedicated energy crop of native grasses and herbaceous plants (forbs) for energy purposes. Producers in the area will plant mixes of perennial native plants, such as switchgrass, for the manufacture of biomass pellet fuels and other biomass products to be used for power and heat generation. The proposed crops also will provide long term resource conserving vegetative cover. The project is a joint effort between the agriculture producers of Show Me Energy Cooperative of Centerview, Mo., and USDA to spur the expansion of domestically produced biomass feedstocks in rural America for renewable energy.

The program provides an opportunity for teams of crop producers and bioenergy facilities to submit proposals to USDA to be selected as a BCAP project area. If selected, crop producers will be eligible for reimbursements of up to 75 percent of the cost of establishing a bioenergy perennial crop, and can receive up to five years of annual payments for grassy crops (annual or perennial), and up to 15 years of annual payments for woody crops (annual or perennial). Bioenergy facilities are those facilities that produce heat, power, biobased products, or advanced biofuels from biomass feedstocks.

BCAP, created in the 2008 Farm Bill, is a primary component of the strategy to reduce U.S. reliance on foreign oil, improve domestic energy security, reduce pollution, and spur rural economic development and job creation. BCAP provides incentives to interested farmers, ranchers and forest landowners for the establishment and cultivation of biomass for heat, power, bio-based products and biofuels.

January 2011 Biodiesel Production Increases

Biodiesel production took a healthy jump in January with 31 million gallons produced, up from 17 million gallons produced in December. Biodiesel consumption also increased with 21 million gallons consumed, up from 15 million gallons consumed in December.

Source : EIA Biodiesel Overview

February 2011 Ethanol Production Drops

February ethanol production dropped to 907,000 barrels per day, down from 920,000 barrels per day in January. Total production for the month was also lower at 1,066,800,000 gallons, down from 1,198,008,000 gallons in January.

Source : Energy Information Administration

KiOR and Catchlight Energy Sign Offtake Agreement for Renewable Fuels

KiOR, Inc., a next-generation renewable fuels company, and Catchlight Energy LLC (CLE), a 50-50 joint venture between subsidiaries of Chevron Corporation and Weyerhaeuser Company focused on providing liquid transportation fuels from sustainable forest-based resources, announced today that they have signed a conditional offtake agreement for CLE to purchase gasoline and diesel fuel blendstocks from KiOR’s first commercial production facility in Columbus, Mississippi.

“This offtake agreement is the latest development in KiOR’s progress to commercialize renewable transportation fuels,” said Fred Cannon, President and CEO of KiOR. “When finalized, our agreement with Catchlight Energy will help bring KiOR’s renewable fuels to market so we can help diversify the country’s energy sources.”

CLE’s purchase of products is contingent on, among other things, satisfaction of product specification criteria and RIN certification of the products as cellulosic biofuels under the U.S. Renewable Fuel Standard. The companies have also signed a Testing and Optimization Agreement to optimize the compatibility of KiOR’s blendstocks with Chevron’s facilities.

This is the second offtake agreement KiOR has signed for its Columbus, MS, facility, having announced an agreement with Hunt Refining Company in March of 2011. KiOR expects to begin production at its Columbus facility in the second half of 2012.