October 2013 Biodiesel Production Hits New High

U.S. production of biodiesel was 132 million gallons in October 2013, about 5 million gallons higher than production in September 2013.

Production came from 112 biodiesel plants with capacity of 2.2 billion gallons per year.

Source : EIA Monthly Biodiesel Production Report

Gevo Supplies U.S. Army With ATJ-8 Fuel for the Black Hawk Helicopter

Gevo, Inc., the world's only commercial producer of renewable isobutanol, announced that the U.S. Army has successfully flown the Sikorsky UH-60 Black Hawk helicopter on a 50/50 blend of Gevo's ATJ-8 (Alcohol-to-Jet). ATJ is a renewable, drop in alternative fuel for JP8 that addresses the Army Energy Security Strategy and Plans mandate that the Army certify 100% of its air platforms on alternative/renewable fuels by 2016. This flight marks the first ever Army Aircraft to fly on the isobutanol ATJ blend. Flight testing is being conducted at Aviation Flight Test Directorate (AFTD) on Redstone Arsenal, AL and is anticipated to be complete by March 2014. Certification programs like this are part of the Department of Defense's long-term energy strategy, as evidenced by the U.S. Navy's recent announcement of its "Farm to Fleet" program through which it will begin to blend biofuels at 10% to 50% rates with conventional jet fuel (JP-5).
This testing is being performed as part of the previously announced contract with Gevo to supply more than 16,000 gallons to the U.S. Army. "Gevo's isobutanol can be used to produce a variety of conventional military jet fuels such as JP5, JP8 and commercial aviation jet fuel. We are pleased to see that the Department of Defense is moving forward with its 'Farm to Fleet' initiative and we would like to see the alcohol-to-jet  from isobutanol be used as a blendstock for the 'Farm to Fleet' program that aims to produce renewable fuels in the USA," noted Patrick Gruber, Gevo's chief executive officer. "We greatly appreciate the U.S. Army's partnership and support in this effort. ATJ from isobutanol is a clean burning, homegrown, bio-jet fuel, and we have a potential route to deliver aviation biofuels at scale and at competitive cost for many aircraft platforms including military and commercial."
Gevo's patented ATJ fuel is truly the same as petroleum jet fuel. It is designed to be fully compliant with aviation fuel specifications and provide equal performance, including fit-for-purpose properties.

Renewable Energy Group, Inc. Agrees to Acquire Syntroleum Corporation

Renewable Energy Group, Inc. (REG) and Syntroleum Corporation announced today that they have entered into an asset purchase agreement pursuant to which REG would acquire substantially all of the assets of Syntroleum Corporation, and assume substantially all of the material liabilities of Syntroleum. The terms of the transaction call for Syntroleum to receive 3,796,000 shares of REG common stock (subject to reduction in the event that the aggregate market value of the REG common stock to be issued would exceed $49 million or if the cash transferred to REG is less than $3.2 million).

Based in Tulsa, Oklahoma, Syntroleum has pioneered Fischer-Tropsch gas-to-liquids and renewable diesel fuel technologies and has 101 patents issued or pending. Syntroleum also owns a 50% interest in Dynamic Fuels, LLC, a 75-million gallon renewable diesel production facility in Geismar, Louisiana. REG, headquartered in Ames, Iowa, owns and operates eight active biodiesel refineries in four states with a combined nameplate production capacity of 257 million gallons and distributes biodiesel through a national network of distribution terminals.

“Combining Syntroleum’s renewable and synthetic fuel technologies with REG’s expertise in biodiesel production, sales, marketing and logistics should be a positive outcome for investors in both companies,” said Renewable Energy Group, Inc. President and Chief Executive Officer Daniel J. Oh. “This will help us grow our advanced biofuel business, enhance our intellectual property portfolio, expand our geographic footprint and launch REG into new customer segments.”

”Syntroleum and its 50%-owned subsidiary Dynamic Fuels represent an attractive entry path for REG into renewable diesel,” Oh continued. “They have invested substantial resources in their Bio-Synfining technology, which enables the economical conversion of lipid-based biomass into diesel and jet fuel. Their technology and products complement our core biodiesel business.”

USDA and DOE Fund 7 Research Projects to Develop Plant Feedstocks for Bioenergy

The U.S. Departments of Agriculture (USDA) and Energy (DOE) announced yesterday $8 million in research grants to develop non-food feedstocks that can be used for bioenergy. The grants are part of a broader effort by the Obama administration to develop domestic renewable energy and advanced biofuels, providing a more secure future for America's energy needs and enhancing rural economies.

"Today's investments are a critical piece of President Obama's strategy to create a clean source of energy and advance the sustainable use of natural resources," said Agriculture Secretary Tom Vilsack. "Innovative research plays a vital role in boosting rural economies and creating jobs in rural America, and the benefits this type of research may offer is another pressing reason we need a new Food, Farm and Jobs bill passed."

Overall, the USDA and DOE projects are designed to improve biomass to be grown for biofuels-including selected trees and grasses-by increasing their yield, quality and ability to adapt to extreme environments. Researchers will rely on the most advanced techniques of modern genomics to develop breeding and other strategies to improve the crops. The research will be conducted on switchgrass, poplar and pine, among other plants.

The potential benefits of this research range from decreasing oil imports to increasing options for American farmers. Because these non-food crops will be optimized to tolerate conditions such as drought and poor soils, they can be grown on marginal lands unsuitable for food crops, thereby avoiding competition with food production. Farmers will have the option to grow bioenergy crops in addition to other existing crop choices.

Fiscal Year 2013 awardees include:

USDA-NIFA-funded

• University of Florida, Gainesville, Fla., $1,000,000
• Oregon State University, Corvallis, Ore., $1,000,000

DOE-funded

• Colorado State University, Ft. Collins, Colo., $1,385,763
• University of Georgia, Athens, Ga., $1,314,235
• University of Illinois, Urbana, Ill., $998,564
• Purdue University, West Lafayette, Ind., $863,576
• University of North Carolina, Chapel Hill, N.C., $1,543,490

The joint USDA and DOE funding program was begun in 2006. DOE's Office of Science will provide $6.1 million in funding for five projects, while USDA's National Institute of Food and Agriculture (NIFA) will award $2 million to fund two projects. Initial funding will support research projects for up to three years.

Alternative Fuels Americas Begins Jatropha Based Biodiesel Production Trials

Alternative Fuels Americas, Inc. (AFAI) announced today that it has initiated trial production runs of Jatropha based biodiesel to verify the Company's processes and procedures. The trial production runs will be conducted in 3 phases, the first of which is set to begin immediately. The Company will be using feedstock from its plantation in Tempate, Costa Rica for the first phase of production. The biodiesel produced will be used for testing and marketing purposes.

"As with every endeavor we undertake, we are testing our assumptions and capabilities before we engage in larger scale activity. This is a major milestone for us and we need to be certain that we not only produce quality biodiesel, but also that we do so within the cost structures we have imposed," stated AFAI CEO Craig Frank. "These 3 phases of trials will allow us to pinpoint issues, make the appropriate adjustments, and finalize processes that will ensure the sustainable and profitable production of biodiesel. This is yet one more step on our path to value creation."

"AFAI marked the completion of our trials this past spring", continued Mr. Frank. "During this R&D period we created and set up for implementation a wide range of operational activities, including Project Jetropha, our wild feedstock program, the signing of offtake agreements and additional projects in development. We are pleased that since we have initiated our active strategy we are moving rapidly toward growth. It is our intent to continue on this path".

USDA And Navy Announce Farm-To-Fleet Program

Agriculture Secretary Tom Vilsack and Secretary of the Navy Ray Mabus  announced yesterday the U.S. Departments of Agriculture (USDA) and Navy's joint "Farm-to-Fleet" venture will now make biofuel blends part of regular, operational fuel purchase and use by the military. The announcement incorporates the acquisition of biofuel blends into regular Department of Defense (DOD) domestic solicitations for jet engine and marine diesel fuels. The Navy will seek to purchase JP-5 and F-76 advanced drop-in biofuels blended from 10 to 50 percent with conventional fuels. Funds from USDA's Commodity Credit Corporation (CCC) will assist the effort.

"The Navy's intensifying efforts to use advanced, homegrown fuels to power our military benefits both America's national security and our rural communities," said Vilsack. "Not only will production of these fuels create jobs in rural America, they're cost effective for our military, which is the biggest consumer of petroleum in the nation. America's Navy shouldn't have to depend on oil supplies from foreign nations to ensure our national defense, and rural America stands ready to provide clean, homegrown energy that increases our military's energy independence and puts Americans to work."

Farm-to-Fleet builds on the USDA / U.S. Navy partnership inaugurated in 2010, when President Barack Obama challenged his Secretaries of Agriculture, Energy and Navy to investigate how they could work together to speed the development of domestic, competitively-priced "drop-in" diesel and jet fuel substitutes.

"A secure, domestically-produced energy source is very important to our national security," said Navy Secretary Mabus. "Energy is how our naval forces are able to provide presence around the world. Energy is what gets them there and keeps them there. The Farm-to-Fleet initiative we are announcing today is important to advancing a commercial market for advanced biofuel, which will give us an alternative fuel source and help lessen our dependence on foreign oil."

Today's announcement marks the first time alternative fuels such as advanced drop-in biofuels will be available for purchase through regular procurement practices. It lowers barriers for alternative domestic fuel suppliers to do business with DOD. Preliminary indications from the Defense Production Act Title III Advanced Drop-in Biofuels Production Project are that drop-in biofuels will be available for less than $4 per gallon by 2016, making them competitive with traditional sources of fuel.

The program gets underway with a bulk fuels solicitation in 2014, with deliveries expected in mid-2015. USDA and Navy also are collaborating on an Industry Day, Jan. 30, 2014, where stakeholders can learn more about Farm-to-Fleet.

Mascoma’s Bioprocessing Technology Surpasses One Billion Gallons

Mascoma Corporation today announced that its consolidated bioprocessing technology (CBP) has been used to produce over 1 billion gallons of renewable fuel. This achievement is a key commercial milestone for its MGT yeast products including TransFerm and TransFerm Yield+. 

“We are tremendously excited about achieving this important commercial milestone,” said Bill Brady, President and CEO of Mascoma. “In less than 18 months, we have accomplished remarkable growth of the TransFerm product line, to the extent that almost a quarter of current U.S. ethanol production is utilizing our yeast technology today. This is a big step in our overall goal to establish Mascoma’s consolidated bioprocessing technology platform as the standard in bioconversion of biomass to replacements for petroleum products.”

TransFerm is an advanced bioengineered replacement for conventional fermenting yeast that lowers costs for corn ethanol producers by alleviating the need to purchase a significant amount of the expensive enzymes currently used in corn ethanol production. Presently, TransFerm is used commercially in approximately 20% of operational corn ethanol facilities in the U.S. In addition, commercial-scale trials are underway at many other corn ethanol producers.

TransFerm Yield+, recently introduced into the market, offers advantages comparable to TransFerm as well as significant additional benefits including reducing the production of glycerol and improving ethanol yield. In commercial-scale trials at a number of corn ethanol producers, this product has demonstrated ethanol yield improvements of up to 4%.

Ethanol production economics are driven by the margin between the value of the products, mainly ethanol and distillers’ grains, and the input costs, mainly corn, energy, and purchased enzymes. The TransFerm line of products not only allows producers to reduce their expense of purchased enzymes, but also to gain significant increases in the amount of ethanol produced. This allows the potential combined savings for a typical ethanol plant to be in the millions of dollars annually.

TransFerm and TransFerm Yield+ are manufactured and distributed by Lallemand Biofuels and Distilled Spirits (LBDS) and jointly marketed and sold by Mascoma and LBDS under an expanded partnership agreement. Recently, the Association of American Feed Control Officials (AAFCO) approved a new feed ingredient definition for TransFerm Yield+, following a favorable review from the U.S. Food and Drug Administration (FDA)

ACE to host RFS comment webinar

Brian Jennings, Executive Vice President for the American Coalition for Ethanol (ACE), today said the advocacy group will be hosting a webinar at 11 AM (CST) on Tuesday, December 17 on how to make comments to the Environmental Protection Agency (EPA) on the proposed RFS rule for 2014.

“The individual and personal stories of grassroots ethanol supporters from all walks of life are critically important if we are to make strong and convincing arguments that the Administration is wrong to let Big Oil wreck the Renewable Fuel Standard,” said Jennings. “During the webinar ACE will provide tips for submitting persuasive comments to EPA, the rationale for engaging Congress in the comment period, and ways to build grassroots support in your communities in support of the RFS.”

In addition to Jennings, other webinar participants will include ACE Senior Vice President Ron Lamberty and ACE’s Washington D.C. advisor, Jonathon Lehman. For information on how to register for the webinar, contact Shannon Gustafson with ACE by emailing her at sgustafson@ethanol.org.

Model Predicts The EPA's Proposal Will Increase Greenhouse Gas Emissions

The 2014 proposed rule for the Renewable Fuel Standard, which would for the first time cut biofuel use, will require using more petroleum and increase emissions of greenhouse gases. The Biotechnology Industry Organization (BIO) utilized the GREET1.2013 model to estimate the changes in petroleum demand and the associated CO2 equivalent emissions from both 2013 and the statutory RFS levels for 2014.

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, noted, “The bottom line on the administration’s proposed 2014 RFS rule is that, if left unchanged, it will increase our reliance on foreign oil and increase emissions of greenhouse gases. By stopping growth in use of biofuels, the proposed rule will stymie the commercialization of advanced and cellulosic biofuels and discourage additional innovation in the biotechnology industry.

“The RFS was intended to set the United States on a long-term path to reduce emissions of greenhouse gases. This proposed rule reverses that path and results in environmental backsliding.”

In 2013, the United States is projected to use 173 billion gallons of petroleum blendstocks (both gasoline and diesel) and 16 billion gallons of biofuels. The 2014 proposal – as written would require more than 175 billion gallons of petroleum and lower biofuel use to 15 billion gallons. If EPA maintained the statutory levels of biofuels, the United States would reduce use of petroleum to 172 billion gallons of petroleum and increase use of biofuels to 18 billion gallons.

Using GREET1.2013 estimates of the greenhouse gas emissions associated with both petroleum and biofuels, the EPA proposal will result in an increase of more than 23 million metric tons of carbon dioxide equivalent emissions. Maintaining the RFS statutory volumes of biofuel would decrease emissions by nearly 7 metric million tons.

Using EPA’s own estimates of the greenhouse has intensity of different fuel choices, the proposal would still result in an increase of nearly 23 million metric tons of CO2 equivalent. Achieving the statutory use of biofuels would decrease emissions by nearly 13 million metric tons.

Erickson concluded, “What the administration failed to consider before issuing the recent RFS proposal is that while gasoline use is projected to decline, diesel fuel use will continue to increase as it has for the past few years. EPA can and should maintain the RFS requirement to increase use of biofuels, rather than begin backsliding on the greenhouse gas emissions.”

Sapphire Energy And Phillips 66 To Advance Commercialization Of Algae Crude Oil

Sapphire Energy, Inc. and Phillips 66 announced a strategic joint development agreement aimed at taking production of algae crude oil a significant step toward commercialization. The companies will work together to collect and analyze data from co-processing of algae and conventional crude oil into fuels. The goal is to complete fuel certifications to ready Sapphire Energy’s renewable crude oil, called Green Crude, for wide-scale oil refining.

Under the agreement the companies will expand Sapphire Energy’s current testing programs to further validate that Green Crude can be refined in traditional refineries and meet all of the Environmental Protection Agency’s (EPA) certification requirements under the Clean Air Act. This includes determining the optimal operating conditions for processing algae crude oil into American Society for Testing and Materials (ASTM)-certified diesel, gasoline and jet fuel. Once the study is finished, the companies will work together to complete the EPA certification process to register a new fuel product entering the market.

“In under a year, Sapphire Energy has entered into contracts with two major companies in the oil and gas industry, showing that there is increasing momentum for algae fuel as a viable crude oil alternative, and significant interest by refiners to have new and better options to meet the California Low Carbon Fuel Standard (LCFS) and the federal Renewable Fuel Standard (RFS),” said Cynthia ‘CJ’ Warner, CEO and chairman of Sapphire Energy. “We’re looking forward to building a strong relationship with Phillips 66, an established leader in research and development for next generation fuels, who understands the opportunity our Green Crude oil holds as a feasible and sustainable crude oil choice for refiners.”

“Phillips 66 is committed to providing energy and improving lives. We are continually on the lookout for promising technology advances in energy manufacturing and logistics,” said Merl Lindstrom, vice president of Technology for Phillips 66. “We believe this joint development project with Sapphire Energy could produce a refinery-ready, sustainable product for Phillips 66, creating yet another exciting opportunity in this rapidly changing energy landscape.”

Combining Phillips 66’s experience in algae research and technical expertise in hydroprocessing and fuels upgrading with Sapphire Energy’s algae cultivation knowledge could yield promising results. This new relationship with Sapphire Energy complements other Phillips 66 renewable fuels collaborations in academia and other sectors to convert a wide array of sustainable feedstocks to transportation fuels. The company’s biofuels platform is one piece of a technology strategy that also includes research and development of fuel cells and solar cells.

Sapphire Energy is now producing crude oil daily from algae biomass cultivated and harvested at the company’s Green Crude Farm, located in Columbus, N.M. The farm is the world’s first algae-to-energy facility that demonstrates the entire value chain of algae-based crude oil production, from cultivation, to harvest, to the conversion of biomass into ready-to-refine crude oil. In initial testing by Sapphire Energy, Green Crude oil was upgraded into on-spec ASTM 975 diesel fuel, proving its compatibility with the existing network of pipelines, refineries and transport systems. The company expects to be at commercial demonstration scale in 2015, commercial scale in 2018, and is eventually projected to produce 1 billion gallons per year by 2025.

Proterro Receives Patent for Its Process To Manufacture Fermentable Sugar

The United States Patent and Trademark Office has issued U.S. Patent No. 8,597,914 to Proterro, Inc., protecting Proterro’s unique, biosynthetic sugar-making process.
The only biofeedstock company that makes sugar instead of extracting it from crops or deconstructing cellulosic materials, Proterro has developed a process that integrates unique transgenic sugar-producing microorganisms with a robust, modular photobioreactor made from off-the-shelf materials. This process yields a fermentation-ready sucrose stream, rather than a mixture of sugars, simplifying downstream processes and reducing their costs.
The photosynthetic microorganisms and their genetic code are already protected by U.S. Patent No. 8,367,379, a composition of matter patent specifically covering “the sequence and assembly of discrete genes of engineered cyanobacteria and the cyanobacteria themselves,” said Proterro CEO Kef Kasdin, who added that the design of the photobioreactor is itself patent pending.
“This method patent protects the technology that will provide a cost-effective, continuous, high-yield process to produce fermentable sugar from the transgenic cyanobacteria using water, carbon dioxide and sunlight,” Kasdin explained.
“While our first, cornerstone patent protects the genetic blueprint of our cyanobacteria,” Kasdin continued, “this patent protects our entire process of making fermentable sugar, from introducing the microorganisms into the photobioreactor through isolating the sugar.”
Proterro’s unique sugar-making process removes the price volatility that comes with crop-based feedstocks and eliminates the complex and costly steps required to produce cellulosic sugars derived from biomass. The result is an economically stable, fermentation-ready sugar feedstock for the scalable, affordable production of a variety of commercial scale fuels and chemicals through standard industrial fermentation methods.

Fossil Fuel Subsidies Reach $544 Billion

With the end of another United Nations Climate Change Conference, the Global Renewable Fuels Alliance (GRFA) criticised leaders of the most developed nations for again failing to reduce fossil fuel subsidies despite their commitment four years ago to eliminate them. The International Energy Agency recently revealed in their annual World Energy Outlook that fossil fuel consumption subsidies reached $544 billion in 2012, up from $523 billion in 2011.

“Another year has passed without any progress being made in eliminating these wasteful crude oil subsidies. These market distorting subsidies hurt developing economies and slow the development of alternative fuels, like biofuels,” stated Bliss Baker, spokesperson for GRFA.

In 2009, at the Pittsburgh G20 Summit, the world’s most developed countries committed to eliminating unnecessary fossil fuel subsidies. Back in 2009, fossil fuel subsidies had reached $300 billion, 45% less than where they are today.

“It is shameful that subsidies have grown 45% since the G20 committed to eliminating fossil fuel subsidies,” said Bliss Baker.

This year’s figure of $544 billion in fossil fuel consumption subsidies shows that efforts to reduce them are not working. Even more egregious is the fact that this number does not include the production subsidies governments provide directly to crude oil companies, which is widely accepted to be in excess of $100 billion.

“The GRFA finds it worrying that although we seem to be very aware of climate change, the leaders of the world’s most important nations have not slowed the subsidization of the consumption and production of crude oil in four years,” stated Baker.

This year’s United Nations Climate Change Conference featured a “Transport Day” and “Fossil-Fuel Subsidies and Climate Change” side events. The focus of these events was land transport and fossil fuel subsidy reform. Land transport, according to the IEA, is the fastest growing source of carbon dioxide emissions, contributing 13% of global emissions. Eliminating fossil fuel subsidies could further reduce global emissions by a minimum of 10%.

“It is disturbing that no progress on the sources of over 20% of the world’s carbon emissions was made and that land transport and fossil fuels subsidies were reduced to side events at the premier conference established to determine the best ways of combating climate change," stated Baker.

“This year’s Warsaw Climate Conference is another lost opportunity for leaders of the most developed nations to show some leadership and get serious about cutting subsidies to crude oil and increase biofuels share of the global future energy mix,” concluded Baker.

Greenleaf Biofuels Reaches Milestone Of 1 Million Gallons of Biodiesel

Greenleaf Biofuels announced recently that as of October 31, 2013, the Company produced its 1 millionth gallon of biodiesel. In commercial production at its New Haven Terminal location since this summer, reaching this milestone was a key goal for the Company and for the biofuel industry in Connecticut and New England. This fuel will primarily be blended into the region’s heating oil supply enabling consumers to heat their homes and businesses with a renewable and American-made product that has been shown to reduce greenhouse gas emissions by up to 88%.

“We are extremely proud to have achieved this production milestone. Our team has worked tirelessly over the last six months to commission the plant and scale production. This is a testament to our employees’ high level of expertise and dedication to our mission,” said Gus Kellogg, Founder and COO of Greenleaf. Added Mark McCall, CEO of Greenleaf, “We have been driving towards this day since we began commercial production. I am extremely proud of our entire team. We look forward to increasing our production further with a goal of exceeding 1 million gallons per month next year.”

Senator Richard Blumenthal, the Senior Senator from Connecticut said, "I congratulate Greenleaf Biofuels for producing its 1 millionth gallon of biodiesel. The company is assisting our nation in becoming more energy efficient and environmentally friendly, and creating much needed clean energy manufacturing jobs in Connecticut. Greenleaf is a tremendous asset to our state and our nation."

Senator Chris Murphy added, “Connecticut is proving resilient in finding new economic drivers that support manufacturing jobs in our state, while at the same time supporting our national policy of increasing the supply of domestically produced renewable fuels. Greenleaf is a great example of a public-private partnership that delivers on the promise of economic growth and policy objectives. I applaud this milestone and look forward to additional growth in this important sector of our economy.”

“Congratulations to Greenleaf on this great achievement,” Connecticut Congresswoman Rosa DeLauro said. “They have taken aggressive steps to make biofuels available to more people in the northeast and it is great to see that paying off. Greenleaf has made more environmentally-friendly energy production a priority, while creating more jobs for Connecticut workers. I am proud that they call New Haven home.”

State Senator Martin Looney thanked the company for helping to revitalize New Haven Harbor, one of the city’s unique economic features and the state’s largest port. “Through Step-Up and the Small Business Express programs, the state has been able to partner with Greenleaf to grow jobs and train new workers.” “The fact that Greenleaf has produced over one million gallons of cleaner-burning biodiesel, having only broken ground two years ago on this brand new facility, is a great achievement for the company and demonstrates the success of our state’s biofuels policy,” added State Senator Ed Meyer.

Concord Blue And LanzaTech To Produce Renewable Fuels From Waste Biomass Resources In Georgia

Concord Blue USA, Inc. and LanzaTech have entered into an agreement to integrate their individually proven technologies to demonstrate the production of fuels and chemicals from waste materials.

LanzaTech will install a Concord Blue Reformer at its Freedom Pines facility in Soperton, GA to convert waste biomass from regional forestry operations into syngas. The syngas will be converted by LanzaTech's proprietary gas fermentation process into a range of biofuels and chemicals. The integration and testing at Freedom Pines will serve as an important step towards commercialization of the integrated technologies for multiple projects that both companies have under contract and in development.

"As the U.S. continues to diversify its energy mix and produce more domestic energy, low carbon fuels derived from waste woody biomass and municipal solid waste will play an increasingly important role,' said Dr. Jennifer Holmgren, CEO of LanzaTech. "Our partnership with Concord Blue will enable us to extend our technology to these important resources."

Concord Blue has developed a closed-loop, commercially proven, non-incineration process that recycles nearly any form of waste, including landfill waste and sewage sludge, into energy at virtually any scale. By working closely with leading businesses, governments and communities around the globe, Concord Blue creates tailored solutions that safely and effectively dispose of waste streams while producing clean energy through advanced waste conversion.

LanzaTech's proprietary technology has earned a global sustainability certification from the Roundtable on Sustainable Biomaterials at a pre-commercial facility in China. The proven process is able to produce fuels and chemicals through the capture and reuse of a variety of gas streams, such as syngas, from gasified biomass, municipal solid waste and waste gases from industrial processes.

"This partnership and demonstration facility lays the foundation for the expeditious development of large scale projects we have been awarded, like the Four Forests Restoration Initiative (4FRI)," said Charlie Thannhaeuser, chairman and chief executive officer of Concord Blue."This represents a critical step towards achieving our company's objective to produce drop-in fuels from waste resources and bolster foreign oil independence by producing sustainable non fossil-based fuels."

2012 Gasoline Consumption

The Energy Information Administration (EIA) released the 2012 fuel consumption numbers recently. With these numbers we can see what the total amount of gasoline consumed for 2012 was. The number that the EIA reports for Finished Motor Gasoline includes all the ethanol blended into the gasoline supply. By subtracting out the ethanol we can see how ethanol is adding to the fuel supply and the extent to which the portion of gasoline derived from petroleum is being displaced.

Finished Motor Gasoline

2012 - 3,177,687,000 barrels x 42 = 133,462,854,000 gallons
2011 - 3,194,754,000 barrels x 42 = 134,179,668,000 gallons
2010 - 3,282,319,000 barrels x 42 = 137,857,398,000 gallons
2009 - 3,283,730,000 barrels x 42 = 137,916,660,000 gallons
2008 - 3,290,057,000 barrels x 42 = 138,182,394,000 gallons
2007 - 3,389,269,000 barrels x 42 = 142,349,298,000 gallons
2006 - 3,377,174,000 barrels x 42 = 141,841,308,000 gallons
2005 - 3,343,131,000 barrels x 42 = 140,411,502,000 gallons
2004 - 3,332,579,000 barrels x 42 = 139,968,318,000 gallons
2003 - 3,261,237,000 barrels x 42 = 136,971,954,000 gallons
2002 - 3,229,459,000 barrels x 42 = 135,637,278,000 gallons

After years of steady increases the amount of Finished Motor Gasoline consumed peaked in 2007.

The number that the EIA provides for Finished Motor Gasoline includes all the ethanol blended into the gasoline supply. So to get the number for just the amount of gasoline derived from petroleum that is consumed, the ethanol needs to be subtracted out.

Ethanol Used : Domestic Production + Imports - Exports

2012 - 12,970,566,000 gallons
2011 - 12,905,802,000 gallons
2010 - 12,915,084,000 gallons
2009 - 11,143,272,000 gallons
2008 - 9,838,374,000 gallons
2007 - 6,960,240,000 gallons
2006 - 5,615,484,000 gallons
2005 - 4,040,190,000 gallons
2004 - 3,551,142,000 gallons
2003 - 2,816,688,000 gallons
2002 - 2,153,004,000 gallons

In years past, ethanol exports were such a small number that they were never factored in. But in 2010 exports rose considerably, so the 2010 number forward includes subtracting out the exports.

Gasoline Used : Finished Motor Gasoline - Ethanol

2012 - 120,492,288,000 gallons
2011 - 121,273,866,000 gallons
2010 - 124,942,314,000 gallons
2009 - 126,773,388,000 gallons
2008 - 128,344,020,000 gallons
2007 - 135,389,058,000 gallons
2006 - 136,225,824,000 gallons
2005 - 136,371,312,000 gallons
2004 - 136,417,176,000 gallons
2003 - 134,155,266,000 gallons
2002 - 133,484,274,000 gallons

The amount of Finished Motor Gasoline consumed that is derived from petroleum peaked in 2004 and has been in steady decline ever since.

Source : Energy Information Administration

Largest Dry Fermentation Anaerobic Digestion Facility in the World Opens

A grand opening event took place Friday, November 22 for the world’s largest dry fermentation anaerobic digestion facility and the first large-scale commercial facility of its kind in the United States. The facility in San José will process an estimated 90,000 tons per year of commercial organic waste that would otherwise go to landfill, instead converting it to 1.6MW of renewable energy and 32,000 tons compost.

Owned and operated by Zero Waste Energy Development Company (ZWEDC), the anaerobic digestion facility is a joint venture between GreenWaste Recovery and Zanker Road Resource Management. The companies came together to take organics recovery to the next level—composting organic material to keep it out of landfill while extracting its energy value.

“Our company started to transform the way we look at waste,” said Rich Cristina, President of ZWEDC and host of the event. Cristina told the 600+ crowd, “We saw there was no such thing as waste, no such thing as garbage. We looked at the materials collected and being composted and saw the potential for greatness.”

Another firm, Zero Waste Energy, LLC (ZWE) holds the exclusive license for the patented anaerobic digestion technology in the Americas and Asia with 20 projects in the planning and development phase throughout North and South America, as well as China and the Middle East. The facility is enclosed and ventilated and includes 16 anaerobic digesters plus four in-vessel composting tunnels. Dry fermentation anaerobic digestion is a natural biological process whereby bacteria break down organic matter in an oxygen-free environment. Decomposition occurs in several stages and converts organic matter into a combustible biogas with a high methane content.

Eric Herbert, CEO of ZWE, was on hand to explain the technology. “We’re sitting in an organic waste processing facility,” said Herbert. “We’re doing what nature does, very efficiently in a controlled way. The significance of this facility is the demonstration of this technology in the U.S. on a major commercial scale. But organic waste and its proper treatment and green energy is what this project is all about.”

The ZWEDC facility models how to reduce landfill statewide and worldwide. The high-quality compost produced will be used to enrich soils, and the renewable biogas will provide both onsite power and power for sale to local users of green energy. Development of the ZWEDC facility moves San José closer to achieving its goal of zero waste to landfill by 2022.

City of San José Mayor Reed spoke about the city’s implementation of its Green Vision, saying, “Our Green Vision has ten bold goals. One of those goals is to be a zero waste city. We already do the recycling part. What about the organics, the largest single category going into the waste stream? We knew we needed to be creative and innovative and build something like this.”

U.S. Congressman Mike Honda congratulated everyone involved with the project for helping future generations. “ The global production of organic waste is 600 billion tons per day, and here in this valley is how to address that global waste accumulating. Because of this first spot, this kind of sustainable activity can now grow in other parts of the country and other parts of the world.”

CalRecycle Director Caroll Mortensen delivered the facility’s official operating permit from the State and affirmed, “This it the type of project that Governor Brown and his administration sees as the future of California, attaining not just environmental goals but creating and sustaining jobs, renewable energy, fuel production, and diverting greenhouse gasses.”

The audience in attendance for the invite-only luncheon, presentations, and tours included elected officials from surrounding cities and counties, as well as business and industry groups representing construction, finance, nonprofits, and education.

Third Quarter Iowa E85 Sales Nearly Double First Quarter Numbers

      The Iowa Renewable Fuels Association (IRFA) today announced that third quarter sales of E85 in Iowa were the second highest on record, doubling first quarter 2013 numbers. Iowans purchased more than 3.61 million gallons of E85 in the third quarter of 2013, nearly double the 1.83 million gallons of E85 purchased in the first quarter of 2013 and up from the 2.62 million gallons of E85 sold in the second quarter, according to Iowa Department of Revenue data.

      “These astounding third quarter sales numbers prove the federal Renewable Fuel Standard (RFS) was working, but now the EPA is trying to pull the rug out from underneath us,” stated IRFA Executive Director Monte Shaw. “During the third quarter, Iowa motorists using E85 routinely saved $1.00 per gallon compared to regular gasoline. But when the EPA announced their proposal to gut the 2014 RFS numbers, they gutted the incentive for retailers to promote low-cost E85.  We saw the E85 price savings pull back, and it won’t be surprising if fourth quarter E85 sales taper off as well.”

      The IRFA recently launched a wholesale E85 price reporting service to promote greater transparency for retailers and distributors of E85 in order to aid retailers in supplying their customers with the lowest-cost E85 available.

      The IRFA publishes Monday’s wholesale E85 prices every Tuesday at http://iowarfa.org/E85PastPriceProgram.php. E85 suppliers wishing to have their price posted should contact T.J. Page with the IRFA at 515-252-6249 or tpage@IowaRFA.org. To be eligible for listing, the supplier's price must: be publicly posted elsewhere; be available to any retailer or supplier; not be restricted by gallonage caps.  E85 is defined in state law as a blend of between 70 and 85 percent ethanol with gasoline.

       Iowa is the leader in renewable fuels production. Iowa has 42 ethanol refineries capable of producing over 3.8 billion gallons annually, with three cellulosic ethanol facilities currently under construction. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.

       The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

Biochemtex To Locate $200 Million Cellulosic Ethanol Plant In North Carolina

North Carolina Governor Pat McCrory and North Carolina Commerce Secretary Sharon Decker announced today that Biochemtex will be locating its new cellulosic biofuels production operations in Sampson County.  The company and its partners plan to create 65 new jobs and invest approximately $200 million over the next three years.

“Biochemtex’s decision is further proof that the biofuels industry is positioned for growth across our state,” said Governor McCrory.  “We have the qualified talent, strong business climate, and attractive quality of life that companies need to succeed. We also have the agricultural capacity and flexibility to provide profitable energy crop options for North Carolina farmers and cost advantaged cellulosic feedstocks for Biochemtex and the advanced biofuels industry.”

Biochemtex is a global technology solution provider specialized in biofuels and renewable chemicals. Biochemtex will operate in North Carolina as Carolina Cellulosic Biofuels, which was established in early 2013 as a Special Purpose vehicle for delivering the first commercial  scale cellulosic bio-refinery utilizing purpose grown energy crops  in North America. This new plant will produce 20 million gallons per year of cellulosic biofuel from locally grown energy crops, agricultural residues, and woody biomass.

“Cellulosic Biofuels development is bringing new jobs to eastern North Carolina,” said Secretary Decker. “Governor McCrory and I are committed to partnering with companies like Biochemtex to create jobs right here in Sampson County and throughout rural North Carolina.”

Salaries will vary by job function, but the average annual wage for the new jobs will be approximately  $47,000 plus benefits. The Sampson County average annual wage is $30,822.

“Biochemtex is excited to bring our PROESA technology platform and our partners to eastern North Carolina," said Guido Ghisolfi, CEO and owner of Biochemtex.  “We’ve already engaged with regional farms and farmers for the supply of energy crops and we see great opportunity for growth and additional projects where regional infrastructure matches need.”

The project was made possible in part by a performance-based grant from the One North Carolina Fund of up to $300,000. The One NC Fund provides financial assistance, through local governments, to attract business projects that will stimulate economic activity and create new jobs in the state. Companies receive no money up front and must meet job creation and investment performance standards to qualify for grant funds.  These grants also require and are contingent upon local matches.

“Biochemtex and various state organizations have worked long and hard on this major development utilizing sustainable new technologies and cellulosic energy crops and I’m thrilled to have the new jobs, corresponding agricultural demand and capital investment for eastern North Carolina,” said Senator Brent Jackson.

“I applaud the hard work that was done at making this jobs announcement a reality,” said Representative Larry Bell. “Our job-ready workforce will serve Biochemtex well, and together we will boost Eastern North Carolina’s economy.”

Other partners that helped with this project include: the N.C. Department of Commerce, N.C. Community Colleges, Sampson County Economic Development Corporation, Sampson County, City of Clinton, N.C. Department of Agriculture, NCSU – N.C. Cooperative Extension and the Biofuels Center of North Carolina.

Renewable Energy Group Expands Presence in Northeast with Another New Jersey Terminal

Biodiesel producer and marketer Renewable Energy Group®, Inc., announced it has entered into an agreement with Dutch Hill Terminals, a leading heating oil terminal in New Jersey, to market biodiesel and biodiesel blended heating oil at its Clifton, New Jersey location.

“This terminal position will give us additional capacity to serve the existing markets in the Northeast and prepare for potential growth moving into 2014,” said Gary Haer, REG Vice President, Sales and Marketing. “As the region increases its consumption of biodiesel in transportation fuel and Bioheat® (heating oil blended with biodiesel) REG will continue to provide a reliable source of high quality, clean burning, advanced biofuel.”

REG Clifton is located at 568 Paulison and now has REG biodiesel blended heating oil available. The company will offer other high quality biodiesel blends for transportation fuel during seasonal periods from the Clifton terminal as well. REG has five other terminal locations in the Northeast, including Whippany and Bayonne, New Jersey and New York locations in New Hyde Park, Port Chester, Ontario and Brookhaven.

The New Jersey State Legislature is currently considering legislation which would require heating oil to contain a three percent biodiesel blend (B3), then increasing to five percent (B5). New York City has already implemented a city-wide requirement of B2 in heating oil and the New York State Legislature passed a bill which would phase in a B2 requirement state wide over two years beginning with the 2014-2015 heating oil season. As data presented by the City of New York shows, cleaner heating oil has had a profound impact on the air quality and health of the residents of the city.

“REG Clifton is a great addition to our biodiesel sales and distribution capabilities in the Northeast market,” said Dave Elsenbast, REG Vice President, Supply Chain. “This position allows us to further expand in the incentivized and growing biodiesel market.”

Patriot Holdings, LLC Announces Plan to Build Biodiesel Production Facility Adjacent to Patriot Renewable Fuels, LLC Ethanol Plant

 

Patriot Holdings, LLC announced today that Patriot’s Board of Directors approved the formation of a new subsidiary (Patriot Fuels, Biodiesel, LLC) to build a five million gallon BioDiesel production facility adjacent to the Patriot Renewable Fuels, LLC (“PRF”) ethanol plant in Annawan, Illinois. The plant will utilize corn oil extracted from the 40 million bushels of corn that PRF processes annually, Vice President and General Manager Rick Vondra stated. “PRF began corn oil extraction in 2011 and this is a natural extension of that business. We have been extracting increasing volumes of corn oil and selling it to other biodiesel producers, or for inclusion into livestock feed. By processing corn oil onsite we can reduce transportation, and marketing costs making Patriot’s biodiesel one of the most cost competitive producers in the biodiesel industry today”.

The funding and development of this project is helped by the Illinois Department of Commerce and Economic Opportunity (DCEO) New Generation Biofuels Production Program.

Biodiesel blends have been found to significantly reduce the amount of toxic carbon-based emissions, and for this reason are considered an advanced biofuel by the Environmental Protection Agency.

By adding this process, Patriot will produce two fuels from the same amount of corn.; ethanol for the automotive industry, and biodiesel for agriculture and the trucking industry. At the same time Patriot will continue to produce dried distillers grain and soluble (DDGS), the high quality livestock feed which is exported to China and other Pacific Rim countries for their growing livestock industry.

Concrete and foundation work will begin in December and the plant is scheduled to begin operation by the third quarter of 2014. The plant will utilize the SUPER™ Process production system designed by Jatro Diesel, Miamisburg, OH. Rahul Bobbili, Jatro’s Vice President stated “Jatro has built more than 15 biodiesel plants and is excited that Patriot will use this new technology.

The new technology being offered is a single stage, catalyst free, super critical process technology that will process feedstock with Free Fatty Acids (FFAs) up to 100% with minimal or no loss in yield. It will completely eliminate the use of a homogenous catalyst such as Sodium Methylate or a heterogenous catalyst, providing a substantial savings.

Patriot’s General Manager Rick Vondra added, “Today, we are a producer of 120 million gallons of ethanol per year. With the previously announced addition of ICM, Inc’s., Selective Milling Technology™(SMT™). PRF will see increased ethanol and corn oil recovery yields, resulting in higher revenues. Five million gallons of biodiesel will further increase our revenues”.

Our plant in Annawan has created jobs and stimulated economic growth in our community and beyond. With strength of our 200 local and Midwestern investors, we’ll harness the strength of a diversified product line and continue to make a positive impact on agriculture and economic development.”

Green Plains Completes Acquisition of Two Ethanol Plants

Green Plains Renewable Energy, Inc. announced recently that it had completed the previously-announced acquisition of two ethanol plants, located in Wood River, NE and Fairmont, MN, from Ethanol Holding Company, LLC, an entity composed of the predecessor owners' lender group. The acquisition increases Green Plains' production capacity to over one billion gallons of ethanol per year.

"Our team worked to quickly complete this acquisition and will now move to integrate these two plants into our platform as seamlessly as possible," stated Todd Becker, President and Chief Executive Officer. "We will also continue to execute on our strategy to expand and diversify our business and to build long-term shareholder value."

Green Plains Renewable Energy To Buy Nebraska Ethanol Plant

Green Plains Renewable Energy, Inc. announces today that it has signed a purchase agreement to acquire the membership interests of Choice Ethanol Holdings, LLC, the entity that owns the former NEDAK Ethanol, LLC ethanol plant located in Atkinson, Neb. and an ethanol storage and loading facility located approximately 15 miles east of the plant. The dry-mill ethanol plant will add approximately 50 million gallons of operating capacity to Green Plains' current annual production capacity of 740 million gallons.

"The acquisition of the plant in Atkinson expands our ethanol production platform and aligns with our ongoing strategy of growing our business and enhancing long-term shareholder value," said Todd Becker, Green Plains' President and Chief Executive Officer. "The plant meets our disciplined acquisition criteria and we have a deep understanding of this technology, size and geographic area. We believe we can rapidly improve the overall performance of this plant."  

The ethanol plant utilizes Delta-T processing technology. The ethanol storage facility holds approximately 24,000 barrels of ethanol and is located on the BNSF rail line. Green Plains plans to staff and re-start the plant within the next four weeks. Once the transaction closes, the Company plans to begin installing corn oil extraction technology, which should be completed in the fourth quarter of 2013. Completion of this transaction is subject to standard and customary closing conditions.

POET Producing Corn Oil at 25 Biorefineries

Twenty-five of POET’s network of 27 biorefineries have now installed its patent-pending corn oil technology, bringing its total capacity to approximately 250,000 tons per year, enough feedstock to produce 68 million gallons of biodiesel annually.

POET has been selling Voilà™ corn oil into biodiesel and feed markets since January 2011, when POET Biorefining – Hudson (S.D.) first began to produce it on a commercial scale. Strong demand for the product prompted upgrades at the majority of the plants in the POET network

“Having a more diverse portfolio of products has been a benefit for POET, particularly when ethanol margins are challenging,” POET CEO Jeff Lautt said. “Expanding our product line is an important part of our strategy for growth.”

POET plants that are producing corn oil today are:

Indiana:
POET Biorefining – Alexandria, Cloverdale, North Manchester and Portland

Iowa:
POET Biorefining – Ashton, Coon Rapids, Corning, Emmetsburg, Gowrie, Jewell and Hanlontown

Missouri:
POET Biorefining – Laddonia

Michigan:
POET Biorefining – Caro

Minnesota:
POET Biorefining – Lake Crystal, Glenville and Preston

Ohio:
POET Biorefining – Fostoria, Leipsic and Marion

South Dakota:
POET Biorefining – Big Stone, Chancellor, Hudson, Groton and Mitchell as well as the POET Research Center in Scotland

One of POET’s four Ingreenuity goals is to increase production of bio-based products. Corn oil is playing an important role in reaching that goal.

“There’s a bio-based solution to so much of what petroleum supplies today,” Lautt said. “It’s exciting for me to see POET playing a large part in providing those solutions.”

Voilà is just one item on POET's growing list of products created at its plants. In addition to ethanol, POET produces quality products for animal feed including Dakota Gold distillers dried grains. POET also captures carbon dioxide at five of its plants for sale to beverage producers and other users.

Pacific Ethanol Stockton Partners with Edeniq to Expand Production

Edeniq announced today that California ethanol producer, Pacific Ethanol, Stockton LLC, has entered into an agreement to install Edeniq technology at the company's Stockton, California ethanol plant.  Pacific Ethanol will install Edeniq's proprietary Cellunators to boost ethanol yields, and will also deploy Edeniq's patented OilPlus corn oil extraction process to increase corn oil recovery.

Edeniq's Cellunator technology mills corn and other plant materials into 'right-sized' particles of feedstock that can be more efficiently converted into the plant sugars needed to produce biofuels. Beginning this quarter, Edeniq will install Cellunators at the Pacific Ethanol plant in Stockton, California.  In addition, Edeniq will deploy OilPlus technology at the Stockton plant.  OilPlus combines thermal, mechanical, and chemical treatments to improve the recovery of corn oil, a valuable co-product that can be used for feed and other bio-industrial products. 

With four ethanol plants in the Western United States including California, Oregon and Idaho, Pacific Ethanol's facilities have the combined ethanol production capacity of 200 million gallons per year.   The Stockton, California plant was built in 2008 and has the capacity to produce 60 million gallons per year.  Edeniq's technology is expected to increase the facility's ethanol yields by 2-4%.     

"Edeniq's technology will allow us to increase efficiency and create additional value for our customers," said Neil Koehler , CEO of Pacific Ethanol, Inc. "Our partnership with Edeniq improves our ability to compete in the marketplace."

Edeniq currently has technology agreements with six ethanol producers across the U.S., and Pacific Ethanol will be the company's second plant partner in California.  In addition, Edeniq owns and operates a demonstration-scale production facility in Visalia, California, which is currently converting a range of cellulosic feedstock into low-cost cellulosic sugars and cellulosic ethanol. 

In June, Edeniq received a $3.9 million grant from the California Energy Commission as part of California's Alternative and Renewable Fuel and Vehicle Technology Program.  The grant was given to Edeniq to help fund further developments and innovative enhancements to Edeniq's proprietary cellulosic ethanol technology, enabling the low capital cost addition of cellulosic ethanol production to corn-based ethanol plants in California. 

"With Pacific Ethanol as a customer, we are continuing our commitment to unlock the sugar conversion process and gain efficiencies each step of the way," said Brian Thome , President and CEO of Edeniq.  "This installation is just the beginning of our work with Pacific Ethanol to scale sustainable fuels."

Sweetwater Energy and Ace Ethanol to Begin Commercial Production of Cellulosic Ethanol

Sweetwater Energy, Inc., a Rochester NY-based cellulosic sugar producer, announced a first of its kind in the nation, long-term commercial agreement with Ace Ethanol, a Stanley, WI-based corn ethanol production facility, to generate cellulosic ethanol at Ace’s plant for up to 16 years. Sweetwater’s patented, decentralized process will convert locally available cellulosic, non-food biomass, such as crop residues, energy crops, and woody biomass into highly fermentable sugar, which Ace will ferment into ethanol. The entire contract has a total potential value in excess of $100 million, and requires a minimal capital outlay by Ace Ethanol while stabilizing Ace’s feedstock cost over the life of the agreement.

“Ace Ethanol has been bench testing Sweetwater’s cellulosic material for some time and we’re confident that this project will be commercially profitable,” says Neal Kemmet, President of Ace Ethanol. “With Sweetwater, we’ll move from 100% corn to a combination of corn starch and 7% cellulosic sugar as our feedstocks.”

“This is a very exciting time for the industry, and we couldn’t be more pleased to have aligned Sweetwater with Ace,” says Jack Baron, President and COO of Sweetwater. “Our patented, decentralized sugar-production model is designed to let us work in tandem with a refiner’s existing infrastructure, which fosters strong collaboration on both sides.  Furthermore, our refined sugars can be used for biochemical or bioplastics production, giving Ace diversification options in the future. Ace is a progressive industry leader located near affordable biomass; they are financially successful and constantly incorporating proven new technologies to maintain their leadership position.”

“Over the last year we’ve had some incredible conversations with everyone at Ace Ethanol, and the more we talked about the benefits we could provide for one another, the more we realized that a partnership between our two companies made for a fantastic fit,” says Arunas Chesonis, Chairman and CEO of Sweetwater. “We’ve now signed a definitive agreement for a long-term commercial relationship for cellulosic sugar, effectively moving an existing dry-mill corn ethanol facility to cellulosic ethanol without interrupting their operations. And best of all, since the process is scalable, Ace can increase the amount of cellulosic sugar they’re adding to their process in the coming years.”

Sweetwater Energy uses a unique, patented technology to produce low-cost sugar solution from non-food biomass. This sugar solution is sold to biorefineries, which use it to produce biofuels, biochemicals, and bioplastics. Unlike petroleum-based technologies, Sweetwater Energy’s process uses carbon from renewable biomass that is grown or procured domestically, and significantly reduces greenhouse gases.

The Sweetwater-Ace agreement entails Sweetwater placing one of its cellulosic facilities adjacent to the Ace Ethanol site, and delivering enough refined monomeric sugar for Ace to produce up to 3.6 million gallons of ethanol per year during the initial phase of the relationship. The promising economics afforded by Sweetwater’s cellulosic sugar and the patented hub-and-spoke distributed model will ultimately determine the pace and volume with which Ace’s corn ethanol facility will migrate to Sweetwater’s cellulosic feedstocks.