Solazyme Begins Commercial Production of Renewable Algal Oils at Iowa Facilities

Solazyme, Inc. announced yesterday that commercial operations have commenced at both Archer Daniels Midland Company (ADM)’s Clinton, Iowa facility, and the downstream companion facility operated by American Natural Products in Galva, Iowa (ANP). Highlighting the flexibility of Solazyme’s technology platform, Solazyme, ADM and ANP have successfully manufactured three distinct and unique Tailored oil products at the facilities, and products are currently being sold and distributed in both the U.S. and Brazil. Volumes shipped to Brazil are being utilized for market development activity in advance of the opening of the Solazyme Bunge Renewable Oils Moema facility. As stated previously, production at the ADM and ANP facilities is expected to ramp to a nameplate capacity of 20,000 MT/yr within 12-18 months, with targeted potential expansion to 100,000 MT/yr in subsequent years.

“This is a critical milestone for Solazyme’s large scale commercial manufacturing capabilities. The Solazyme, ADM and ANP teams have done an excellent job bringing up commercial operations at the Iowa facilities with Solazyme’s Tailored oil production technology. We have already successfully produced three Tailored oil products at scale and have begun selling these products into the North American marketplace,” said Jonathan Wolfson, CEO Solazyme. “Consistent with our stated plans, we are focused initially on ensuring consistent and reliable operations as we build customer trust. While we acknowledge that it is still early days, we look forward to the opportunity to expand our production volume and the slate of oil products available.”

Truckloads of product are now shipping from the Iowa operations for use in applications including lubricants, metalworking and home and personal care. These shipments are being made pursuant to multiple supply agreements as well as spot purchases, and include reorders.

In the high-performance lubricants and metalworking fluids industries, Solazyme’s Renewable Tailored algal oils help to provide outstanding performance and a sustainable solution with better lubrication, surface tension and viscosity index, plus enhanced stability at elevated temperature, pressure and speed. In home and personal care, Solazyme’s Tailored algal oils offer better performance and a more sustainable alternative to existing oils.

November 2013 Biodiesel Production Dips Lower

U.S. production of biodiesel was 128 million gallons in November 2013. Biodiesel production during November 2013 was about 4 million gallons lower than production in October 2013. Biodiesel production from the Midwest region (Petroleum Administration for Defense District 2) was 66% of the U.S. total. Production came from 112 biodiesel plants with capacity of 2.2 billion gallons per year.

Source : Energy Information Administration (EIA)

New Study Highlights Renewable Fuels Economic Impact In Iowa

Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw today stated Iowa’s renewable fuels industry has taken the best punches its opponents can throw and is still fighting back to preserve a strong and growing federal Renewable Fuel Standard (RFS).  Shaw’s comments came during today’s 8th Annual Iowa Renewable Fuels Summit at The Meadows Conference Center at Prairie Meadows.  In addition, IRFA released the results of a new economic impact study to highlight the importance of fighting for renewable fuels.

 “While production and profits were sound, the renewable fuels industry took a pounding politically in 2013,” stated Shaw.  “But I stand before you today to declare that the Iowa renewable fuels industry can take their punches and we are fighting back!  No one here ever thought it would be easy to earn market share away from the world’s most powerful and profitable industry.  The fact is, the world needs oil, but consumers also deserve the chance to choose lower cost renewable fuel blends.  So, we will never stop fighting to put the option of E15, E85 and biodiesel in front of every American consumer.”

Responding to revelations that the White House told the EPA that setting the RFS number too low would result in “no harm, no foul” Shaw added:  “That notion is truly out-of-touch – even for Washington, DC.  Today, Iowa biodiesel plants sit idle waiting for the politicians to make up their minds.  And if the EPA proposed rule moves forward, industry observers predict that 25 to 45 percent of US biodiesel production will shut down, costing thousands of jobs.  Do you think those families agree that setting the RFS too low results in ‘no harm, no foul?’  As soon as word of the proposed 2014 RFS numbers leaked in the media the corn market plummeted.  With corn prices at or below the cost of production, rural America is about to enter a period of reduced farm income, lower land values, and the inability to make a profit.  Do you think a 5th generation farmer forced to auction off his family’s Century Farm agrees that setting the RFS too low results in ‘no harm, no foul?’  President Obama needs to keep his promise about supporting cleaner fuels, consumer choice, and cutting oil dependence.  He needs to pick up the phone and call the EPA and simply state: Don’t mess with the RFS.”

Economic Impact Study Released During Summit

At the Summit, IRFA released a study conducted by ABF Economics economist John Urbanchuk highlighting the impact of the renewable fuels industry on Iowa’s economy.  During 2013, spending on new cellulosic plant construction and research and development offset reduced spending on inputs due to lower commodity prices.

“The environment facing the renewable fuels industry improved modestly in 2013 and the economy of Iowa benefitted accordingly,” stated Urbanchuk.  “Ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa.”

Based on the size and scope year-end, the renewable fuels industry had the following impacts on Iowa’s economy in 2013:

• Accounts for more than $5.5 billion, or about 4 percent, of Iowa GDP;
• Generates $4 billion of income for Iowa households; and
• Supports more than 62,000 jobs through the entire economy.

To view the full report, please click here.  

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.

Gasoline and Diesel Fuel Prices 1/27/2014

 The U.S. average retail price of regular gasoline decreased less than one cent to remain at $3.30 per gallon as of January 27, 2014, six cents lower than last year at this time. Prices increased by two cents in the Midwest to $3.22 per gallon and decreased one cent in all other regions of the nation. The Gulf Coast price was $3.09 per gallon, the Rocky Mountain price fell to $3.13 per gallon, the East Coast price was $3.38 per gallon, and the West Coast price was $3.49 per gallon.

The national average diesel fuel price was up three cents to $3.90 per gallon, two cents lower than last year at this time. Prices increased in all regions of the nation. The largest increase occurred on the East Coast where the price rose five cents to $4.00 per gallon. The Midwest price increased four cents to $3.87 per gallon and the West Coast price was $3.98 per gallon, up one cent from last week. Both the Gulf Coast and Rocky Mountain prices were up a fraction of a penny to remain at $3.77 per gallon and $3.86 per gallon, respectively.

Source : EIA

REG Biodiesel Will Power Generators at Super Bowl Venue, NYC Celebrations

Renewable Energy Group, Inc. today announced that it will provide biodiesel to power generators at the Super Bowl and events leading up to it, helping the National Football League enhance its 20-year effort to make the game more environmentally friendly.

REG will provide as much as 15,000 gallons of biodiesel to fuel generators at MetLife Stadium in East Rutherford, New Jersey during Super Bowl XLVIII, as well as powering more than 18 generators for events along Super Bowl Boulevard in New York City leading up to the Super Bowl.

“All of us at REG are excited and honored to help ‘green’ the Super Bowl with our high-quality, American made biodiesel,” said Daniel J. Oh, Renewable Energy Group, Inc. President and CEO. “We are proud to be working with the NFL to help in their environmental efforts and to promote biodiesel’s other benefits of energy security, energy diversity, and job creation to one of the largest sports audiences in the world.”

Biodiesel is a renewable, clean-burning diesel replacement that is enhancing the American energy complex and increasing energy and food security. Made from a diverse mix of feedstocks including recycled cooking oil, animal fats, waste greases and refined vegetable oils, biodiesel reduces greenhouse gas emissions between 57 and 95 percent when compared to petroleum diesel.

“The NFL has been working on the 'greening' of the Super Bowl for 20 years and adding biofuels to our mix is one more step in that process,” said Jack Groh, NFL Environmental Program Director. “We have a comprehensive program that includes solid waste recycling, food recovery, repurposing of decor and construction materials, collection of books and sports equipment for children in need, urban forestry projects and renewable energy use. Integrating biodiesel is another way we can address the environmental impact of our activities at the Super Bowl.”

REG is partnering with two leading heating oil distributors in the region, Hart Energy for delivery to Times Square and Majka and Son’s for delivery to Metlife Stadium.

Based in Ames, Iowa, REG is North America’s leading biodiesel producer, with 257 million gallons of annual nameplate production capacity at eight biorefineries located in Iowa, Illinois, Minnesota, and Texas.

Biodiesel Industry Celebrates Annual Production Record

Last week more than 1,100 members of the biodiesel industry from across the country gathered in San Diego for the 2014 National Biodiesel Conference & Expo. While industry leaders can point to another year of record growth with more than 1.8 billion gallons of biodiesel produced in 2013, a recent proposal from the U.S. Environmental Protection Agency has producers wary that the market could be dramatically reduced.

“The biodiesel industry hit a grand slam in 2013, hitting an average annualized monthly production rate of 2 billion gallons for the last half of the year – double that of last year’s record,” said Joe Jobe, CEO of the National Biodiesel Board. “The EPA’s volume proposal for 2014 would effectively cut the volumes in half from current production levels.  I can’t think of a more unacceptable example of a call for full retreat during such an overwhelming victory.”

In his annual address at the Biodiesel Conference & Expo, Jobe shed light on current industry challenges and exposed cracks in how we think about energy.

He pointed out that biodiesel’s story is not unique, “Biodiesel’s story is an example of how effective government policy can be to jump start a fledgling industry. That is the same story of nearly every new industry that involves technological development. Strong government policy support along with a unique spirit of innovation, entrepreneurship, and risk-taking are the primary reasons that so many major modern industries had their start in America.”

One of the most influential policies in the energy sector is the Renewable Fuel Standard (RFS2). Jobe explained, “The Renewable Fuel Standard is effective policy that is working. It is fulfilling its intention to establish diversity, competition, and choice in the transportation fuel sector, which is why the incumbent industry is trying to kill it.”

Today is the final day for the industry to submit official comments to EPA on the proposal with thousands of supporters already doing so. The industry is also eagerly awaiting President Obama’s State of the Union speech tonight for additional clarity regarding his position on renewable fuels.

While this critical federal proposal was the topic of general session speakers, breakout sessions, and hallway conversations among attendees, there were many other activities at the industry’s annual event. Attendees heard from automakers, fleet users, and consumers about their biodiesel use and got to test out a number of new diesel models during the Ride-and-Drive and Vehicle Showcase events.

A record number of students from across the country participated as part of the Next Generation Scientists for Biodiesel program. The NBB program has led to increased communication and collaboration between the biodiesel industry and universities involved in biodiesel research. Thirty-six students representing 18 different universities attended the conference with a handful presenting their research during a student-focused breakout session and through a student poster session on the tradeshow floor.

Also, NBB recognized leadership and achievements within the industry with the annual “Eye on Biodiesel” awards. The honorees were: Impact Award, the California Air Resources Board; Innovation Award, General Motors for the B20-approved Chevrolet Cruze; Industry Partnership, Kirk Leeds, Iowa Soybean Association; and Inspiration Award, Len Hering, RADM, USN, California Center for Sustainable Energy.

“The biodiesel industry would not be what it is without champions and supporters like these Eye on Biodiesel honorees,” said Jobe. “We are proud to honor our award winners who have made a substantial impact in getting biodiesel to where it is today, a fully commercialized advanced biofuel that is produced from coast to coast.”

Leading Natural Gas Vehicle Advocacy Groups Join Forces

Two leading natural gas transportation advocacy groups are joining forces to advance the growth of clean and affordable natural gas vehicles (NGVs) in the United States. The Drive Natural Gas Initiative, formerly a collaboration between the American Gas Association (AGA) and America’s Natural Gas Alliance (ANGA), will integrate its activities with Natural Gas Vehicles for America (NGVAmerica) to help promote greater use of the nation’s domestic abundance of clean, affordable natural gas in transportation.

“Natural gas vehicles offer a trifecta of solutions for our economy, environment and energy security,” said AGA President and CEO Dave McCurdy, who will serve alongside ANGA President and CEO Marty Durbin on NGVAmerica’s executive committee. “The momentum for NGVs has never been greater, and local natural gas utilities will play a key role in enabling NGV adoption. AGA is proud to join with ANGA and NGVAmerica to help ensure this momentum continues to grow.”

AGA and ANGA initially launched the Drive Natural Gas Initiative in 2010 as a two-year collaboration between the natural gas utility and natural gas production communities. The Drive Initiative played an integral role in securing a level playing field for natural gas vehicles in 2012’s CAFE standards for light-duty vehicles. Due to the initiative’s success, the participating companies elected to extend the collaboration for a third year in 2013. Now, AGA, ANGA and NGVAmerica leadership have decided the time is right to combine resources and help allow more Americans to benefit from the economic, environmental and energy security opportunities provided by natural gas. 

“This reorganized NGVAmerica will really help demonstrate to people the many benefits of employing natural gas vehicles as a growing part of our highway fleet,” said Marty Durbin, ANGA’s President and Chief Executive Officer said. “ANGA stands ready to help NGVAmerica as they build appreciation for the many economic and environmental benefits of using more natural gas on America’s highways.”

Natural gas vehicles offer significant long-term cost savings for drivers. These market dynamics create tremendous opportunity for NGV adoption, which can be strengthened by policies that help ensure natural gas can compete on a level playing field with other alternative transportation fuels. Clearing the way for greater use of natural gas in transportation will also contribute to greater use of American energy and greater energy security, as cleaner air. NGVs produce 20 to 30 percent fewer tailpipe emissions than today’s gasoline vehicles.  

“The NGV industry is poised for historic growth,” said Rich Kolodziej, President of NGVAmerica. “NGVs are an essential part of America’s transportation system, and this new partnership will only help to grow that role and bring the benefits of natural gas to more Americans.”

“NGVAmerica is excited about this new partnership with AGA and ANGA,” said Ron Eickelman, NGVAmerica Chairman and President, Agility Fuel Systems. “Joining efforts will create a stronger front than we had individually, and I look forward to working with these two organizations to embrace the great opportunities that exist for NGV’s in our nation.”

The transportation sector offers significant opportunity for businesses, policymakers and the public as they look to find more ways to benefit from the nation’s abundant supply of domestic natural gas. By helping to educate consumers, supporting favorable policies and facilitating the growth of refueling infrastructure, NGVAmerica and its members will help lead the charge to help the nation realize the economic, environmental and energy security potential of natural gas.

Petroleum Demand Up in December and Fourth Quarter

Total U.S. petroleum deliveries (a measure of demand) rose by 5.8 percent from December 2012 to average nearly 19.2 million barrels per day last month. For the fourth quarter of 2013, petroleum deliveries increased by 4.6 percent compared to the fourth quarter of 2012.

“Both demand and production in December showed strong gains over the prior year, reflecting continued progress in domestic manufacturing as well as the broader economy,” said API Chief Economist John Felmy.

Gasoline demand rose by 4.5 percent from December 2012 to average nearly 8.8 million barrels per day. Demand also increased from the prior year for distillate (5.9 percent), jet fuel (9.9 percent), “other oils” (11.1 percent) and residual fuel (40.5 percent).

Source : American Petroleum Institute (API)

American Freedom Energy To Begin Selling E15 In Ohio

American Freedom Energy is the first retailer in Ohio to offer E15 to consumers for use in 2001 and newer vehicles. The expanded offering of E15 will create savings at the pump for consumers. Currently, E15 is available in 14 states across the country, and more and more retailers are seeking to benefit from the competitive advantage that the higher fuel blend offers.

“Being a leader and not a follower, we believe in consumer choice,” said Glenn Badenhop, President and CEO of American Freedom Energy. “Offering higher ethanol blends like E15 sets us apart from other stations, but also helps our local economies, helps the environment, and helps reduce our addiction to foreign oil. Alternative fuels are the future.”

“Seeing retail leaders like Freedom Energy, MAPCO Express, Murphy Oil and Minnoco offering E15 continues to validate that there is a viable market for the new fuel. When given the choice, consumers will seek the fuel that costs less, improves the performance of their vehicles and is better for our environment. The increase in E15 availability is quite impressive,” stated Tom Buis, CEO of Growth Energy.

E15 is the most tested fuel blend and is approved for all vehicles produced for model year 2001 and beyond – encompassing approximately 80 percent of the vehicles on the road today. In Department of Energy tests, 86 vehicles, representing all makes and models, were driven more than six million miles with no issues.

Along with E15 for 2001 and newer vehicles American Freedom Energy will offer E85, E40, E30, and E20 for Flex Fuel vehicles (FFVs) at their Liberty Center station. In doing so, American Freedom Energy also joins more than 3,000 retailers throughout the nation who have the infrastructure available to provide motorists with a choice of various ethanol blends.

Iogen Announces New Drop-In Cellulosic Biofuels From Biogas

Iogen Corporation announced it has developed and patented a new method to make drop-in cellulosic biofuels from biogas using existing refinery assets and production operations.

The company estimates there is refining capacity in place to incorporate 5-6 billion gallons per year of renewable hydrogen content into gasoline and diesel fuel. Iogen will initially commercialize the approach using landfill biogas, and then expand production using biogas made in the cellulosic ethanol facilities it is currently developing.

The production method involves processing biogas to make renewable hydrogen and incorporating the renewable hydrogen into finished fuels in selected refinery hydrogenating units.

The overall greenhouse gas emissions are reduced by more than 60%, meeting the threshold for cellulosic biofuel in the USA. Iogen said it is actively consulting with the EPA and CARB to gain pathway approval for cellulosic RIN and LCFS credit generation.

“Biogas is produced today from landfills, wastewater treatment plants, waste digestion facilities, and farm digesters with well-proven technology,” says Patrick Foody, Iogen’s Executive Vice President, Advanced Biofuels. “We can now take biogas and make specification gasoline and diesel with renewable content using well-proven existing refining operations. It is a win for everybody.”

The company says it is planning to use the technology in association with two large-scale US cellulosic ethanol plants it is developing, resulting in increased overall cellulosic biofuel yields per unit of feedstock, lower unit capital costs, and lower water usage per unit of biofuel production. The company made the announcement at US EPA’s Landfill Methane Outreach Project Conference in Baltimore.

Gasoline and Diesel Fuel Prices Fall 01/20/2014

 The U.S. average retail price of regular gasoline decreased three cents to $3.30 per gallon as of January 20, 2014, two cents lower than last year at this time. Prices decreased in all regions of the nation with the largest decrease coming in the Midwest, where the price was five cents lower than last week at $3.20 per gallon. The West Coast price fell three cents to $3.49 per gallon and the East Coast price was $3.39 per gallon, a drop of two cents from last week. The Gulf Coast price lost a penny to total $3.10 per gallon while the Rocky Mountain price decreased less than a cent to remain at $3.15 per gallon.

 The national average diesel fuel price fell one cent to $3.87 per gallon, three cents lower than last year at this time. The East Coast price increased a penny to $3.95 per gallon while prices in all other regions of the nation fell. The West Coast and Rocky Mountain prices both dropped three cents to $3.97 per gallon and $3.86 per gallon, respectively. The Midwest price was $3.83 per gallon, a decrease of two cents, and on the Gulf Coast, the price lost a penny to $3.77 per gallon.

Source : EIA
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Court of Appeals Upholds California's Low Carbon Fuel Standard

The Renewable Fuels Association (RFA) and Growth Energy issued the following statement in response to the Ninth U.S. Circuit Court of Appeals’ denial of rehearing en banc in the litigation regarding California’s Low Carbon Fuel Standard (LCFS).

“Today’s decision by the Court of Appeals to allow a clearly discriminatory LCFS to stand is a blow to California consumers. We will continue to evaluate all our options moving forward to assure that sound science and fair play ultimately prevail in this case. We are heartened that seven judges strongly dissented from the Court’s decision believing it merited further review, citing:

‘The majority opinion in this case upholds a regulatory scheme that, on its face, promotes California industry at the expense of out-of-state interests. The majority opinion also sanctions California’s clear attempt to project its authority into other states. Because the Constitution forbids such an expansive and discriminatory exercise of state power over interstate commerce, I respectfully dissent from our failure to rehear this case.’”

 The American Fuel & Petrochemical Manufacturers (AFPM) issued the following statement in response to the ruling.

“Although the LCFS clearly discriminates against fuels produced in other states and violates the Commerce Clause of the U.S. Constitution, the Ninth Circuit Court of Appeals chose to deny our petition and uphold this biased law. The broad reach and intended scope of the California LCFS mean that the Ninth Circuit’s decision will have adverse consequences throughout the nation’s fuel supply chain far beyond California’s borders, and ultimately a negative impact on consumers.  AFPM agrees with the seven dissenting judges who would have granted further review because the original decision ‘contravenes black letter law’ and is ‘inconsistent with Supreme Court precedent.’ AFPM will be evaluating its options regarding further court proceedings in upcoming weeks.” 

Renewable Energy Group Purchases Renewable Chemical Technology Developer LS9

Renewable Energy Group, Inc. today announced it has acquired leading renewable chemical technology developer LS9, Inc. for a purchase price of up to $61.5 million, consisting of up front and earnout payments, in stock and cash. Most of the LS9 team, including the entire R&D leadership group, will join the newly named REG Life Sciences, LLC, which will operate out of LS9’s headquarters in South San Francisco, CA.

“This acquisition is a major step in realizing REG’s strategy to expand into the production of renewable chemicals and other products,” said Daniel J. Oh, Renewable Energy Group President and CEO. “The industrial biotechnology platform and robust patent portfolio LS9 has been building will now be combined with REG’s proven production and commercialization capabilities to accelerate the commercial introduction of renewable chemicals to meet increasing customer demand for sustainable products.”

LS9’s proprietary technologies harness the efficiency of the fatty acid metabolic pathway of microorganisms and are expected to make a wide range of renewable chemicals for large, diverse markets such as detergents and personal care, as well as renewable fuels. LS9’s technology platform can utilize diverse feedstocks including conventional corn and cane sugars, low-cost crude glycerin from biodiesel production, and cellulosic sugars. LS9 is a cornerstone investment for REG Life Sciences, which also plans to develop adjacent and complementary fermentation technologies.

“LS9 is a leader in developing technology for the next generation of chemicals and fuels to be produced from renewable feedstocks rather than petroleum,” said Vinod Khosla, founding partner of Khosla Ventures, an investor in LS9. “REG’s proven capabilities, track record for execution, and access to lower cost feedstock make it an ideal partner to commercialize LS9’s technology.”

Under the terms of the agreement between REG and LS9, REG paid $15.3 million in cash and issued 2.2 million shares of REG common stock (valued at approximately $24.7 million based on a trading average for REG stock) at closing. In addition, REG may pay up to $21.5 million in cash and/or shares of REG common stock consideration for achievement of certain milestones over the next five years related to the development and commercialization of products from LS9’s technology.

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, distributors and customers.

LS9, Inc. is a technology leader in the commercial development of a growing portfolio of sustainable products to meet the needs of chemical and fuel markets worldwide since 2005. In 2010, LS9 was awarded the U.S. Environmental Protection Agency's highest environmental honor for its revolutionary technology. The company owns and operates a demonstration production facility in Okeechobee, Florida.

Pacific Ethanol To Implement ICM’s Selective Milling Technology At Its Magic Valley Plant

Pacific Ethanol, Inc. announced today that it will implement yield-enhancing technology at its Magic Valley, Idaho plant. The company chose ICM Inc.’s Selective Milling Technology (SMT) as a component in its process to increase corn oil production and boost ethanol yields by increasing available starch for conversion.

Neil Koehler, the company’s president and CEO, stated: “We are committed to increasing our product yields, diversifying our revenue streams and improving profitability. We began commercial corn oil production with an ICM-designed system at our Magic Valley plant in mid-2013. SMT complements these operations by increasing both corn oil and ethanol yields and positions our Magic Valley plant for the potential future production of advanced biofuels that builds upon the SMT platform.”

Pacific Coast Canola Signs Supply Agreement With Imperium Renewables

Imperium Renewables, one of the largest biodiesel manufacturers in the United States, has reached an agreement with Pacific Coast Canola (PCC) to purchase regionally sourced canola oil for biodiesel production.

Pacific Coast Canola’s canola crushing plant in Warden, Wash., is the largest in the West. It began commercial operation in August of 2013 and has the capacity to produce at approximately 137,000 metric tons, or 40,000,000 gallons, of oil annually.

“This milestone agreement with PCC will help us fully realize the potential of renewable biofuels in Washington,” said Imperium CEO John Plaza. “Canola grown by Pacific Northwest farmers will be processed by PCC and that oil will be made into biodiesel by Imperium at our Hoquiam refinery. This advanced biofuel will be shipped to consumers in the region and around the world. We have been pursuing this goal since 2004 and we are very excited to be working with PCC to see this vision through.”

The agreement will provide a reliable and diversified market for a portion of PCC’s production capacity, while supplying regionally sourced canola oil for Imperium. Locally sourced canola oil will help the biofuels company produce fuels that meet low-carbon fuel standards required by law in California and British Columbia, as well as biodiesel market demands in Oregon and Washington and the global marketplace. Low-carbon fuel standards mandate not only that fuel be refined from less carbon heavy materials such as petroleum, but also take into account the carbon emitted during the growth, production, distribution and use of those fuels.

“We are proud to partner with Imperium, one of our local Washington state customers benefitting from our close proximity,” said Matt Upmeyer, Chief Operations Officer of PCC. “The Imperium contract is another big step as we bring our facility to full capacity, which is great news for local canola farmers.”

Noem, Bustos Lead Group of 30 Lawmakers in Protesting EPA's New Renewable Fuels Standard Proposal

Today, Republican Congresswoman Kristi Noem (SD-AL) and Democratic Congresswoman Cheri Bustos (IL-17) led a bipartisan group of 30 Members of Congress in expressing concern over the Environmental Protection Agency’s (EPA) proposal to reduce the renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS).  This is the first time the EPA has proposed a reduction in the amount of ethanol to be blended in our nation’s gasoline supply.

In a letter to EPA Administrator Gina McCarthy, the Members of Congress said that reducing the amount of renewable fuels in gasoline could hurt rural economies, jeopardize American jobs, raise prices at the pump and deter investment in biofuels and biofuel infrastructure.  They asked that the EPA revise their proposal before the 60 day comment period ends on January 28^th.

"We are writing to express our concern regarding the Environmental Protection Agency’s (EPA) proposed rule for the 2014 renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS) program," the Congresswomen said in their letter.  "The significant reduction in renewable volume obligations under this proposed rule could destabilize the renewable fuel industry and send the wrong message to investors. This risks jobs and threatens the development of advanced and cellulosic biofuels that bring higher-level ethanol and biodiesel blends to consumers."

Every November, the EPA is required to provide the RVOs that refineries use to blend biofuels into the market.  While the EPA has the authority to reduce the RVOs, it never has before.

Deinove Announces Cellulosic Ethanol Progress

Deinove, a cleantech company that designs and develops new industrial production processes based on the exploitation of Deinococcus bacteria has managed to produce 9% ethanol with unparalleled performance thanks to its exclusive production process.

For several years now, the global biofuels industry has resolutely turned towards 2nd generation biofuels, i.e. from non‐food biomass. So far, no process has been able to harness lignocellulosic biomass in an economically competitive way. Deinove shows that its bacterial process is suitable for converting this type of biomass to biofuel and should offer industrial production costs fall in line with market expectations. With the Deinol project initiated in 2009 and partly financed by Bpifrance (French Innovation Bank), Deinove paves the way for a renewable, responsible and profitable alternative to oil and gas fossil fuels.

Emmanuel Petiot, CEO of Deinove, states: "With an alcohol titer at 9%, we are well above the objectives we set at the launch of the Deinol program. We are delighted to have obtained results that could impose a new production standard in a world market as important as that of 2nd generation biofuels." He adds: "Manufacturers around the world have strong interest in our solution and in the light of discussions with several of them, we believe we will shortly be able to announce partnerships in several areas of bio‐based chemistry."

Jacqueline Lecourtier, former Scientific Director of the French Petroleum Institute (IFPEN) who has recently assumed the chairmanship of Deinove's Scientific Council adds: “To our knowledge no other bacterial fermentation process has demonstrated such capabilities to date; high titer but also significant yield and productivity, key factors relevant for industrial performance. This innovative process has become a reality and could bring a commercially profitable and environmentally sustainable solution to move on to a post‐petroleum era.”

Professor Rodney J. Rothstein, Board Member at Deinove, Professor of genetics and development at the University of Columbia Medical Center says: "This is a real technological achievement given that no other microorganism combines such high content ethanol production with the ability to decompose non‐food biomass ‐ two fundamental technological barriers to the development of 2nd generation biofuels!”

The 9% content v/v (volume/volume) equal to 7.2% wt/v (weight/volume) widely exceeds the 5% alcohol content wt/v, considered to be the threshold for industrial exploitation of the process for 2nd generation biofuels. The obtained performance is gradually getting closer to the maximum theoretical yield. This data supports the industrial and economic potential of the Deinove method relying on the unique capabilities of Deinococcus bacteria that the company is the only one in the world to exploit. To Deinove's knowledge no other bacterial fermentation process has demonstrated such capabilities to date; high titer but also significant yield and productivity, key factors relevant for industrial performance.

In the third quarter of 2012, Deinove already demonstrated the ability of optimized Deinococcus bacterium to transform 80% of a non‐food biomass into simple sugars, and then convert these sugars into ethanol in laboratory fermentors (from 1 to 5 L) with a 3% titer. Today, Deinove engineering technology has improved and been automated in order to develop a strain producing ethanol at high alcohol content: 9%, from glucose as substrate in 20 L pre‐industrial fermentors.

These results were obtained in a purely mineral and basic culture medium, a mode of production adapted to the industrial world, and in record time. At this stage, it can be concluded that Deinococcus is the ideal candidate for biofuel production as it is very undemanding on the environment in which it can develop and act.

Deinove started a new test campaign in 300 liter bioreactors provided by Sanofi in Toulouse, France which are 15 times the size of current production volumes, to confirm the obtained results in quasiindustrial conditions. The trial results are expected in the first half of 2014.

Subsequently, tests on the scale of several m3 are planned for the end of 2014, with content, productivity and performance higher than those initially planned.

The Deinol process has many competitive advantages to prevail in the race for a 2nd generation biofuel standard:

• The Deinococcus confirm their unique and exceptional properties: very stable bacteria even after being optimized and particularly resistant to many molecules normally toxic for any organism.
• Deinove has extremely powerful proprietary tools in its new laboratories that allow the company to modify the Deinococcus genome easily due to its natural genetic properties.
• Deinol simplifies production with an "all‐in‐one" Consolidated BioProcessing process (CBP) to jointly ensure hydrolysis and fermentation.
• Deinol removes thermal stress: in a process using "classic" microorganisms the heat generated by the fermentation kills off the microorganisms. This makes it necessary to control the reactor temperature resulting in considerable energy cost and waste of time. Deinococcus makes this unnecessary as it is thermophilic and thus works at high temperatures of 48°C.
• Finally, in contrast to most bacteria, the Deinococcus are capable of simultaneously fermenting different types of simple sugars, such as C5 and C6, derived from the hydrolysis of cellulose and hemicellulose, and even other organic compounds such as glycerol and acetic acid, thus increasing the final yield of the process.
• Deinol relies on Deinove’s strong worldwide intellectual property rights for the industrial exploitation of the Deinococcus.

Blue Sun Implements Enzymatic Biodiesel Processing Technology At It’s St. Joe Refinery

Blue Sun Energy announced today the implementation of its enzymatic biodiesel processing technology, making the Blue Sun St. Joe Refinery the most advanced biodiesel production facility in the world.

“We have fully commercialized the enzymatic process technology and the plant is operating at full commercial scale. This process gives Blue Sun a clear competitive advantage in the market, allowing us to bring the absolute highest quality fuel to market using this industry leading technology,” said Leigh Freeman CEO. “This achievement again shows Blue Sun’s ability to identify and commercialize the most relevant advanced technologies in fuel production.”

Blue Sun specializes in identifying promising technologies in renewable fuels and taking them to commercial reality.

The process at the St. Joe refinery produces very high quality biodiesel, which is even further improved by the state-of-the-art distillation system installed last year at the refinery.

“The process developed by Blue Sun for enzymatic transesterification improves the bottom line through lower costs and higher revenue,” said Sean Lafferty, Vice President of Technology & New Business. “Blue Sun can use essentially any feedstock without limit to free-fatty-acid content. This reduces pre-treatment requirements and costs significantly. Blue Sun’s feedstock advantage alone can yield a savings of 10 cents per pound of feedstock, or 75 to 80 cents lower cost per gallon of finished biodiesel.”

Blue Sun’s process is more efficient in methanol recovery and use, further reducing costs. In co‑products, the value of glycerin produced is much higher than in standard biodiesel operations – 20 to 30 cents per pound versus less than 10 cents per pound traditionally.

Blue Sun engineers developed a unique proprietary process for enzymatic biodiesel production. This was necessary to overcome the hurdles typical in an entirely new manufacturing process.

“Commercial operations using the enzyme would not have been possible without the many discoveries and inventions of the skilled engineers at Blue Sun, and the support of our partner, Novozymes,” said Bruce Baughman, Chief Operations Officer.

This new process utilizes Novozymes’ Callera Trans L enzyme. This is the first implementation in the world of enzymatic transesterification at significant commercial scale.

This implementation represents yet another commercialization achievement for Blue Sun, the company that established the first high-quality biodiesel specification and in 2004 introduced the most advanced biodiesel under the brand Fusion.

The Blue Sun St. Joe plant is a 30 million gallon per year facility.

New Study Shows The Greenhouse Gas Emissions Of Corn Ethanol Have Declined

A comprehensive new study conducted by Life Cycle Associates found that the carbon footprint of corn ethanol continues to shrink, while the carbon impacts associated with crude oil production continue to worsen as more marginal sources are introduced to the fuel supply.  According to the report, “As the average carbon intensity of petroleum is gradually increasing, the carbon intensity of corn ethanol is declining. Corn ethanol producers are motivated by economics to reduce the energy inputs and improve product yields.”

The study, commissioned by the Renewable Fuels Association (RFA), found that average corn ethanol reduced greenhouse gas (GHG) emissions by 32% compared to average petroleum in 2012. Importantly, this estimate includes prospective emissions from indirect land use change (ILUC) for corn ethanol. When compared to marginal petroleum sources like tight oil from fracking and oil sands, average corn ethanol reduces GHG emissions by 37-40%.

As more unconventional crude oil sources enter the U.S. oil supply, and as corn ethanol production processes become even more efficient, the carbon impacts of ethanol and crude oil will continue to diverge. By 2022, average corn ethanol reduces GHG emissions by 43-60% compared to petroleum, the study found.

“The majority of unconventional fuel sources emit significantly more GHG emissions than both biofuels and conventional fossil fuel sources,” according to the study. “The biggest future impacts on the U.S. oil slate are expected to come from oil sands and fracking production.” In the absence of biofuels, “…significant quantities of marginal oil would be fed into U.S. refineries, generating corresponding emissions penalties that would be further aggravated in the absence of renewable fuel alternatives.”

The study also reveals several fundamental flaws with the GHG analysis conducted by the Environmental Protection Agency (EPA) for the expanded Renewable Fuel Standard (RFS2) regulations. Notably, corn ethanol was already reducing GHG emissions by 21% compared to gasoline in 2005, according to the analysis. Yet, the EPA’s analysis for the RFS2 assumes corn ethanol GHG reductions won’t reach 21% until 2022. EPA’s analysis also implicitly assumes the carbon intensity of crude oil will be the same in 2022 as it was in 2005, a presumption that has already been disproven by the real-world increase in the carbon intensity of crude oil. “As unconventional sources of crude oil have grown in recent years, the carbon intensity of petroleum fuels has increased above the baseline levels initially identified in the Renewable Fuel Standard...” according to the authors, who call on EPA to address several shortcomings with its analysis.

RFA President and CEO Bob Dinneen offered the following comments on the results of the new study: “When it comes to ethanol’s carbon footprint, biofuel critics and some regulatory agencies are unfortunately stuck in the past. We don’t need to wait until 2022 for corn ethanol to deliver on its promise to reduce GHG emissions. This study uses the latest data and modeling tools to show that corn ethanol has significantly reduced GHG emissions from the transportation sector since enactment of the original RFS in 2005. Further, the report highlights that ethanol’s GHG performance will continue to improve and diverge with crude oil sources that will only get dirtier as time goes on. When ethanol is appropriately compared to the unconventional petroleum sources it is replacing at the margin, the GHG benefits are even more obvious. We urge EPA officials to closely examine this new information and make good on their commitment to ensure the RFS regulations are based on the latest data and best available science.”

Study : Carbon Intensity of Marginal Petroleum and Corn Ethanol Fuels (PDF)

MAPCO Express to offer E15 to Customers in 2014

Convenience store operator MAPCO Express, Inc. announced today it will begin offering E15 to customers. E15, a combination of 15% ethanol and 85% gasoline, is to be included in new build and select mega store locations starting in 2014.

“MAPCO prides itself in being an innovative retailer that provides outstanding value to its customers. We have a long track record of offering new products to our customers and E15 fits in nicely with our current product line up,” stated Dan Gordon, Vice President of Business Development. “Ethanol based fuels have been a lower per gallon cost alternative over the past few years and this should allow us to offer our customers additional fuel options.”

After Department of Energy testing, E15 was approved in January 2011 by the Environmental Protection Agency for use with 2001 and newer vehicles. This fuel option will be offered at new MAPCO locations at all fueling dispensers, excluding diesel.

“Based on the performance of this product, our goal will be to add the E15 fuel option to our mega stores as we continue to increase the number of these locations in the future. Assuming a successful program, our goal is to have 100 stores offering E15,” added Gordon. “Our MAPCO MY Reward$ program and mobile app are both industry leading programs and we continue to lead by offering alternative fuels like E85, biodiesel and soon E15 to our customers.”

Bear Republic Brewing And Cambrian Innovation Unveil Pioneering Wastewater Reuse System

Cambrian Innovation and Bear Republic Brewing Company, Inc. today announced the unveiling of an EcoVolt water treatment system at Bear Republic’s brewery in Cloverdale, CA. The EcoVolt system employs a proprietary bioelectric technology to treat wastewater and generate biogas, transforming waste into an asset. Bear Republic is the first brewery to purchase the energy positive EcoVolt system, which will cut water treatment costs, generate clean water and energy for use on site, and significantly reduce the brewery’s CO₂ footprint.

EcoVolt is the world’s first and only industrial-scale, bioelectrically enhanced wastewater treatment and reuse system. Electrically active organisms rapidly eliminate 80-90 percent of the biological oxygen demand (BOD). The bioelectrochemical system also converts carbon dioxide directly into high-quality biogas that can be used on-site to generate both heat and electricity for Bear Republic’s production process. The EcoVolt is expected to deliver an annual return on investment of more than 25 percent. With this pioneering system, the brewery can:

• Generate enough clean heat and electricity to eliminate more than 50 percent of the site’s baseload electricity use
• Supply more than 10 percent of the facility’s requirements with recycled water
• Cut operational costs by hundreds of thousands of dollars annually.

“We are pleased to announce this partnership with Cambrian Innovation as Bear Republic phases in this revolutionary wastewater reuse system,” said Richard R. Norgrove, Sr., Bear Republic CEO.

“Sustainable production practices have been a cornerstone of Bear Republic’s business since we started in 1996,” says Richard “Ricardo” Norgrove, Jr., Bear Republic Brewmaster and COO. “Cambrian’s innovative technology not only fulfills this mission, but also has proven to be a valuable asset for our business, especially as California is in the midst of a drought. By removing barriers to production expansion due to water resource limitations, we can fulfill a family dream of expanding our business within Sonoma County and creating a true destination brewery.”

The EcoVolt installation includes a “headworks” unit, modular reactors for treatment and a packaged combined heat and power system. The reactors are delivered on a flatbed truck and are the size of a cargo shipping container, enabling rapid and simple system installation and commissioning. The modular design enables food and beverage companies to incrementally add capacity as they grow, reducing upfront capital expenses. Bear Republic plans to treat current water capacity and expand units as it grows. EcoVolt’s bioelectric capabilities allow for continuous, remote monitoring and control, further reducing operational costs.

“Bear Republic is not just implementing one of the most advanced water treatment and reuse systems ever developed—they’re also saving money from day one,” said Dr. Matthew Silver, Founder and CEO of Cambrian Innovation. "EcoVolt is proven to treat wastewater and generate energy in a single process, reducing operating expenses and aiding with wastewater regulation compliance. With this installation, Bear Republic has reaffirmed its reputation as a pioneering brewery.”

Beer brewing is a water-intensive industry, typically consuming up to ten times the amount of water for beer produced. Bear Republic has worked hard to achieve a 3.5 to 1 ratio and with EcoVolt they expect to do even better. The system enables varying types of water reuse ranging from tank washing to irrigation, cutting sewer charges substantially while ensuring a stable water supply for the City of Cloverdale.

Murphy-Brown and Roeslein Alternative Energy To Develop $100 Million Northern Missouri Biogas Project

Murphy-Brown of Missouri, LLC (MBM) and Roeslein Alternative Energy, LLC announced recently their joint plans to develop a $100 million renewable biogas project in northern Missouri. Murphy-Brown is the livestock production subsidiary of Smithfield Foods, Inc.

The project is a unique and innovative model for sustainability that will demonstrate how underutilized agricultural resources can create renewable fuel, benefit the ecosystem and generate economic opportunity. The joint venture envisions combining technology and animal waste to optimize alternative energy production for regional distribution.

Biogas, also called renewable natural gas, is created when organic matter decomposes without oxygen present. Biogas will be harvested from MBM finishing farms in northern Missouri using state-of-the-art anaerobic digestion technology developed and installed by Roeslein Alternative Energy, LLC.

Roeslein has engaged investment banking firm Stern Brothers & Co. to underwrite the entire financing for this project. The Missouri Clean Energy District's PACE program is being reviewed as a financing option. Construction is scheduled to begin in the spring of 2014.

"This is an important sustainability project for Murphy-Brown of Missouri. Not only does it demonstrate our ongoing commitment to the environment and to our neighbors, but it also allows us to make facility upgrades that are good for our employees, our animals and the continuous improvement of our business in northern Missouri," said Michael Rainwater, general manager of MBM.

"This capital project is a robust investment in our northern Missouri operation, producing additional good-paying jobs and promoting economic development that is vitally important to our region," Rainwater said.

"All of us at Smithfield Foods are tremendously proud of the many people at Murphy-Brown and Roeslein Alternative Energy who have already worked very hard on this project, and we're looking forward to the day when Missouri residents will benefit from this innovative source of biogas energy," said Dennis H. Treacy, Smithfield's chief sustainability officer.

Impermeable synthetic covers will be placed on existing nutrient treatment lagoons, and barn scraper technology will be utilized to deliver raw nutrients of livestock waste to covered lagoons. Alternative fuel equipment will then harvest and commercialize biogas produced inside the lagoons. The biogas will then be utilized as a renewable, green energy resource.

"Environmental benefits from this project will be significant," explained Rudi Roeslein, president of Roeslein Alternative Energy and CEO of Roeslein & Associates, a global leader in systems integration specializing in sophisticated modular construction.

"Utilizing proven anaerobic digestion technology, we expect to achieve reduced greenhouse gas emissions, shrink MBM's carbon footprint, eliminate rainfall effects on treatment systems, all while capturing a valuable and renewable biogas energy resource," Roeslein said.

The anaerobic digestion process modules will be fabricated by Roeslein & Associates' wholly-owned subsidiary, Roeslein Manufacturing, in Red Bud, Illinois. Funding for these projects is not being provided by Smithfield Foods or MBM.

Iowa Biodiesel Production Sets Record in 2013

The Iowa Renewable Fuels Association (IRFA) announced yesterday that Iowa biodiesel production was up 25% in 2013, setting a new record with production topping 230 million gallons of biodiesel.  The previous production record was 184 million gallons in 2012. Iowa, the leading producer of biodiesel, is expected to account for 13.5 percent of U.S. biodiesel production in 2013.

Though a new record was set in 2013, uncertainty hangs over the biodiesel industry in 2014 as Congress allowed the federal biodiesel blenders tax credit to expire and the Environmental Protection Agency (EPA) is proposing to weaken the Renewable Fuel Standard (RFS). 

“Iowa continues to lead in the production of biodiesel,” stated IRFA Executive Director Monte Shaw. “However, many plants across the nation, including some in Iowa, are shut down today as the market waits to see what happens with the RFS.  That means good paying jobs are at risk.  The EPA needs to uphold Congressional intent and maintain a robust RFS for biodiesel of at least 1.7 billion gallons for 2014.”

Soybean oil remained the leading biodiesel feedstock in Iowa, accounting for 68 percent of production.  However, the use of lower carbon intensity feedstocks doubled over the previous year.  Animal fats accounted for 27 percent of biodiesel feedstocks, while used cooking oil, inedible corn oil and canola oil accounted for the remaining five percent.

“How does it make sense for the EPA to gut the advanced biofuels portion of the RFS when the impact will likely be a reduction in the use of lower carbon intensity feedstocks like animal fats and used cooking oil?  That runs counter to the intent of the law,” added Shaw.

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

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.

Greenbelt Resources And Diversified Ethanol File Patent Protection For Ethanol-Water Separation Membrane System

Greenbelt Resources Corporation today announced patent protection filing for its proprietary ethanol-water separation membrane module technology on behalf of its subsidiary Diversified Ethanol Corporation. The patent-pending system utilizes the Hitachi-Zosen membrane known for purifying a number of liquids and gases including ethanol and other organic solvents.

The proprietary solution for separating water from ethanol developed to improve the efficiency of ethanol dehydration will also reduce the overall cost to construct and service a system in contrast to alternative designs that require a custom build approach. Instead of combining a large number of membranes into one large vessel, the new innovation from Diversified Ethanol uses a series of repeating smaller vessels, each with fewer membranes that together form a single, higher capacity module. The patent-pending module design utilizes multiple off-the-shelf parts.

“Our goal has always been to apply innovative thinking and engineering to the ethanol production process as a means of providing a lower cost fuel alternative that helps our economy become more self-sufficient and less reliant on foreign oil,” said Floyd Butterfield, Founder and Chief Technology Officer at Diversified Ethanol Corporation. “Not only does our approach enable more energy-efficient separation of water, it sets the stage for us to apply our membrane module technology to other separations that offer additional energy-saving and economic benefits to our products and the community.”

Greenbelt Resources and Diversified Ethanol incorporated the unique membrane system into the plant design for the Stan Mayfield Bio Refinery Pilot Plant at the University of Florida Institute of Food and Agricultural Sciences laboratory at the Buckeye Technology facility in Taylor County, Florida.

November 2013 Crude Oil Imports Total $28.5 Billion

 The latest numbers from the Commerce Department show that the trade deficit for November was $34.3 billion, down from $39.3 billion in January. Crude oil imports accounted for $28.5 billion.

In all, imports of petroleum goods fell 11% in November from the prior month, to $28.5 billion, seasonally adjusted. Meanwhile, U.S. exports of energy continued to edge higher, with petroleum shipments rising 5.5% in November to $13.3 billion.

On an inflation-adjusted basis, the U.S. trade deficit in petroleum goods in November was the lowest since late 1996, Commerce data show.

Source :  L.A. Times

Ergon Acquires Bunge’s Interest in Mississippi Ethanol Plant

Ergon, Inc. announced today that its wholly owned subsidiary, Ergon Ethanol, Inc., acquired Bunge North America, Inc.’s interest in and now owns 100% of Ergon BioFuels, LLC located in Vicksburg, Mississippi. Financial terms were not disclosed. Effective December 31, 2013, Bunge-Ergon Vicksburg, LLC changed its name to Ergon BioFuels, LLC.

Ergon BioFuels, LLC, formerly Bunge-Ergon Vicksburg, began as a joint venture between Ergon Ethanol, Inc. and Bunge North America in 2007. With an annual throughput capacity of 54-million gallons, Bunge-Ergon Vicksburg, LLC was one of the largest producers of ethanol in the southeastern United States until operations were suspended in December 2012.

“This transaction allows us to look at alternative feedstocks, as well as how the plant may be used for products beyond traditional ethanol production,” said Don Davis, President of Ergon’s Refining and Marketing division. “In addition, we feel the Ergon BioFuels facility will be synergistic with nearby Ergon Refining, Inc.’s opportunities for an expanded product base.”