Pacific Ethanol To Merge With Aventine Renewable Energy Holdings

Pacific Ethanol, Inc. and Aventine Renewable Energy Holdings, Inc. announced they have entered into a definitive merger agreement under which Pacific Ethanol will acquire all of Aventine's outstanding shares in a stock-for-stock merger transaction.

"With this transaction, Pacific Ethanol strengthens its unique production and marketing advantages by diversifying into two additional discrete markets and connecting its Western markets with Aventine's Midwest and Eastern markets for low-carbon renewable fuels," said Neil Koehler, CEO of Pacific Ethanol. "The merger offers a rare opportunity to combine the experience, market presence and diversification that Aventine brings with our industry leadership in Western US markets. It will complement our existing business as we balance assets across new regional markets, expand our footprint for the production and marketing of low-carbon renewable fuels, diversify our technology and increase our mix of co-products."

"This transaction will more than double our annual ethanol production capacity, and it will establish Pacific Ethanol as the fifth largest producer and marketer of ethanol in the United States. Once closed, we expect the transaction to be immediately accretive to earnings with expected operational synergies and the expansion of our ethanol and co-product marketing business. We are impressed with the both the quality of Aventine's assets and the seasoned employees operating the business, and we look forward to integrating our teams," concluded Koehler.

"In late 2012, the new Aventine management team defined a very aggressive turnaround strategy," stated Mark Beemer, CEO of Aventine. "Our mission has been accomplished with our plants achieving five new production records; over $30 million invested in the Pekin facilities, including coal-to-natural gas conversion; and additional capital investments in our Nebraska facilities. In 2014, Aventine achieved record earnings and successfully restarted its 155 million gallons of ethanol production in Nebraska. We look forward to making a successful transition of the business to Pacific Ethanol and bringing the combined strength of the two companies to the market."

Under the terms of the merger agreement, Pacific Ethanol expects to issue approximately 17.75 million shares of its common stock upon closing in exchange for all of the issued and outstanding shares of Aventine's common stock. Upon completion, existing Pacific Ethanol shareholders will own approximately 58% of the issued and outstanding shares of common stock of the combined entity, and Aventine will nominate two representatives to be named later to Pacific Ethanol's board of directors, increasing the total board count to nine.

Aventine will be operated as Pacific Ethanol's wholly-owned subsidiary. Aventine currently has $135 million in term loan debt.

Aventine's ethanol production assets include its 100 million gallon per year wet mill and 60 million gallon per year dry mill located in Pekin, Illinois, and its 110 million gallon per year and 45 million gallon per year dry mills in Aurora, Nebraska. Combined with Pacific Ethanol's current ethanol production capacity of 200 million gallons per year, the combined company will have a total ethanol production capacity of 515 million gallons per year, and together with Pacific Ethanol's marketing business will sell over 800 million gallons of ethanol annually.

The closing of the transaction, which is expected to occur during the second quarter of 2015, is subject to customary and other closing conditions and regulatory approvals, as well as the approval of Pacific Ethanol's and Aventine's shareholders.

NGVAmerica Launches New Natural Gas Station Mapping Tool

NGVAmerica launched this week the NGVAmerica Station Analysis Map, a unique tool that maps the nation’s natural gas stations and highlights the vehicle ranges supported by the stations in 100, 400 and 600 mile increments.

In addition to vehicle range, the NGVAmerica Station Analysis Map features the most comprehensive and up-to-date information on the nations compressed natural gas (CNG) and liquefied natural gas (LNG) fueling infrastructure, including station locations, accessibility and contact information. This information is derived from the Alternative Fuels Data Center (AFDC) and is updated monthly.

The NGVAmerica Station Analysis Map is made available to the public so that both fleet operators and consumers can take advantage of the tool to make route and travel planning easy. NGV industry leaders also will benefit from this tool, which can help to identify opportunities for new station construction and help to identify key markets.

“The new NGVAmerica Station Analysis Map is an important addition to our online resources that help further expand the use of natural gas as a vehicular fuel,” said NGVAmerica President Matt Godlewski. “This tool will help industry leaders, fleet operators, and consumers alike to further promote and take advantage of clean-burning, domestically abundant natural gas."

The NGVAmerica Station Analysis Map is accessible on the NGVAmerica website at 

www.ngvamerica.org/stations.

Pacific Ethanol Announces Agreement to Sell CO2 From Its Boardman, Oregon Plant

Pacific Ethanol, Inc. announced its agreement with Kodiak Carbonic, LLC to sell CO2 from the Pacific Ethanol Columbia plant located in Boardman, Oregon. Kodiak plans to construct a liquefaction and dry ice processing plant adjacent to the Columbia facility and expects to purchase up to 200 tons of CO2 per day to sell to food processing and beverage producers.

Neil Koehler, the company's president and CEO, said: "The opportunity to utilize the CO2 from our ethanol production process as another co-product for sale further diversifies our revenues and improves Pacific Ethanol's profitability. We anticipate the new CO2 processing plant in Boardman to begin operations in early 2015 and to contribute approximately one to two cents per gallon in operating income."

Granite State Biofuels Seeks Change Through Craft Brewed Independence from Petroleum

Granite State Biofuels, a community scale biodiesel producer of Bow NH has decided to employ a funding campaign on the increasingly popular crowdfunding website Indiegogo.com. During a period of turmoil and uncertainty regarding government policies and subsidies relating to alternatives to petroleum based fuels, it has become increasingly difficult for small producers to access capital. In the absence of stable policy many producers are scaling back their production and there is great risk to the broad and sustained success of the growing biodiesel industry.

The importance of exploring and supporting all options in our nation’s quest for freedom from foreign oil and reversing damaging environmental trends is known to many yet we are hampering solutions that can be created right here in our communities.

Granite State Biofuels is seeking to develop community activism in support of its efforts to bring a superior solution to environmentally damaging petroleum while simultaneously redistributing economic prosperity back to the local level. No other transport or energy fuel can so closely match its petroleum counterpart and return direct and immediate economic windfall to the community in which it was produced.

Big oil lobbying groups want people to remain unaware of the numerous benefits to locally produced energy sources. The opportunities presented by crowdfunding, which is made up primarily of like-minded and similar interest individuals can influence real grassroots level change even against the likes of the major lobbyists and mega oil companies.

GSB is seeking to inspire a young and motivated audience hungry for innovation and change similar to what has surfaced in many recent crowdfunding eco-campaigns such as the wildly successful Solar Roadways project also on Indoiegogo.com.

The change we will see in the future of Alternative Energy Economics will be populated with similar individuals to the bright young pioneers we have seen exploding across Internet Startups over the past decade. Innovation and passion are the critical ingredients to the type of change our security, environment and economy must have to evolve off our tremendous addiction to petroleum.

Since 2011 Granite State Biofuels, a woman–owned innovator in biodiesel production technologies has worked tirelessly to produce a very compact, highly efficient and distributable process for biodiesel production. The 3 Million Gallon per Year plant they have built fits into a tractor trailer and while not meant to be truly mobile it can be easily built, permitted and transported into communities to act as a local source of direct petroleum replacement fuels. This keeps costs of installation, production and distribution down by servicing the local areas from which raw materials are sourced and end product is consumed.

For more Information go to Indiegogo Campaign “Craft Brewed Biodiesel Independence from Petroleum” - http://bit.ly/1r6Guj2

Pacific Ethanol Awarded $3 Million Grant to Support Sorghum Feedstock Program

Pacific Ethanol, Inc. announced it was awarded a $3 million matching grant from the California Energy Commission to develop a sorghum feedstock program collaboratively with Chromatin, Inc., CSU Fresno's Center for Irrigation Technology and the Kearney Agricultural Research and Extension Center. This undertaking also includes the California In-State Sorghum Program to support a lasting expansion in California's ability to produce low-carbon ethanol from in-state feedstock that meets both the renewable fuel and greenhouse gas reduction goals stipulated under the federal Renewable Fuel Standard and California's Low-Carbon Fuel Standard.

Neil Koehler, the company's president and CEO, stated: "We are honored to receive this important grant, which supports Pacific Ethanol's collaboration with California Agriculture and the other ethanol producers in California toward the long-term development of sorghum feedstock for advanced biofuel production at both our Madera and Stockton California facilities."

Himark BioGas To Build 3 Anaerobic Digestion Plants

Himark BioGas International has signed an agreement with NEO Energy LLC for the design, construction, and start-up of three integrated anaerobic digestion (AD) and fertilizer plants in Massachusetts and Rhode Island. The AD plants will recycle food waste to produce organic-based fertilizer and renewable electricity.

As part of the agreement, Himark BioGas will act as a technology licensor and owner’s representative on behalf of NEO Energy LLC during the design, construction and operation stages of the plants.

AD plants designed on Himark BioGas’ patented “IMUS” technology can produce renewable energy and pathogen-free fertilizer from food waste, source separated organic materials, cow manure, ethanol plant waste/thin stillage, slaughter house waste, food processing waste, and agricultural waste (open pen feedlot, sand-laden dairies, etc.). The IMUS technology also can handle feedstock containing large amounts of sand, dirt, rocks, plastic, and cellulose. Furthermore, with its turnkey, guaranteed-maximum capital cost designs, Himark BioGas guarantees electricity, gas and fertilizer outputs with any kind of feedstock. Himark’s AD plants are developed and integrated with the client’s processes at a rapid pace and the best short- and long-range profitability.

The entire catalog of technologies enjoys protection by patents in the U.S. and various other countries.

Shane Chrapko, CEO of Himark BioGas commented, “The development of the anaerobic digestion plants will positively contribute to effective food waste recycling, profitable pathogen-free fertilizer production, energy self-sufficiency and a reduction in carbon emissions for the local communities. Each ton of food waste diverted from the landfill will reduce Greenhouse Gas Emissions by just over one ton of CO2 (Equivalent).”

Robert Nicholson, President of NEO Energy LLC, says that “NEO’s anaerobic digestion plants will recycle food waste generated by supermarkets, food processors, restaurants and other institutions and divert that waste away from landfills and incineration facilities. Our plants produce a high-quality organic-based fertilizer while reducing greenhouse gases, preserving landfill capacity and producing renewable energy. Our first plants will also be available to those businesses that will need to comply with the 2014 commercial food waste disposal ban in Massachusetts and the recently enacted law in Rhode Island requiring that food residuals produced by large waste generators be recycled starting in 2016.”

Renewable Energy Group Completes Dynamic Fuels Acquisition

Renewable Energy Group, Inc. announced recently that its wholly-owned subsidiary, REG Synthetic Fuels, LLC, has completed  its acquisition of the remaining 50% ownership interest in Dynamic Fuels, LLC, previously owned by Tyson Foods, Inc. 

As a result of last Tuesday’s closing of its purchase of substantially all of the assets of Syntroleum Corporation and the closing of this transaction with Tyson, REG now takes full ownership of Dynamic Fuels’ 75-million gallon nameplate capacity renewable diesel biorefinery in Geismar, Louisiana.

Tyson and Syntroleum formed Dynamic Fuels in 2007 as a 50/50 joint venture.  Completed in 2010, the facility is the first large-scale renewable diesel biorefinery built in the U.S. and will now be known as REG Geismar, LLC.

“Closing these transactions enables our entry into the renewable diesel market in a significant way,” said Daniel J. Oh, Renewable Energy Group, Inc. President and Chief Executive Officer.   “We are excited about the opportunity to offer new products to our customers, while building on our core competencies in research, engineering, production, and distribution of advanced biofuels.  We look forward to bringing the Geismar biorefinery online and work to do so has begun.”

REG paid Tyson approximately $16.5 million in cash at closing and retired approximately $13.5 million of Dynamic Fuels’ indebtedness to Tyson.  REG has also agreed to make up to $35 million in future payments to Tyson tied to product volumes at the Geismar biorefinery over a period of up to eleven and a half years.  REG intends to use proceeds from its recent $143,750,000 convertible senior notes offering to either replace the letter of credit that Tyson Foods obtained to support the biorefinery’s $100 million in Gulf Opportunity Zone Bonds, issued through the Louisiana Public Facilities Authority, or to redeem these bonds.

Most of the employees at Dynamic Fuels, LLC are expected to join the company as part of the renamed REG Geismar, LLC.

Renewable Energy Group To Acquire Tyson Foods’ Ownership Stake In Dynamic Fuels

Renewable Energy Group, Inc. has reached an agreement with Tyson Foods, Inc. to acquire Tyson’s 50% ownership position in Dynamic Fuels, LLC, the companies announced today.

Completion of the transaction with Tyson Foods, which is contingent upon the closing of REG’s December 2013 announced agreement to acquire substantially all of the assets of Syntroleum Corporation, would give REG full ownership of Dynamic Fuels and its 75-million gallon per year nameplate capacity renewable diesel biorefinery in Geismar, Louisiana. Tyson and Syntroleum formed Dynamic Fuels in 2007 as a 50/50 joint venture. The Geismar facility, completed in 2010, was the first large scale renewable diesel biorefinery built in the U.S.

“Upon closing, this is another milestone for REG in growing our core advanced biofuels business,” said Daniel J. Oh, REG President & CEO. “It gives us the opportunity to further expand our production capacity into new product lines, while growing our overall advanced biofuel manufacturing capability, and bringing on other renewable chemical applications.”

“Selling our interest in Dynamic Fuels to REG provides capital for Tyson to redeploy into other opportunities,” said Andrew Rojeski, Vice President-Renewable Energy for Tyson Foods. “REG is a long-term customer of ours, buying fats, oils and greases to make renewable fuel, and we hope to continue that relationship.”

Under the terms of the agreement, an REG subsidiary would acquire Tyson Foods’ 50% membership interest in Dynamic Fuels by paying Tyson approximately $18 million in cash at closing and up to $35 million in future payments tied to production volume at the Geismar biorefinery over a period of up to eleven and a half years. REG will also fund repayment of approximately $12 million of Dynamic Fuels’ indebtedness to Tyson at closing.

A portion of the development and construction of the Geismar biorefinery was funded by $100 million in Gulf Opportunity Zone Bonds, issued through the Louisiana Public Facilities Authority. Closing of the acquisition from Tyson Foods is conditioned on REG’s replacement of the letter of credit Tyson Foods obtained to support issuance of the bonds or completion of a financing sufficient to refinance the bonds prior to December 31, 2014 on terms acceptable to REG. REG may seek to use existing cash on hand and/or one or more financing vehicles, including public or private debt or equity, to satisfy this condition. Closing is also subject to satisfaction of other customary closing conditions.

REG currently owns eight operating biodiesel refineries in Iowa, Illinois, Minnesota and Texas that have a combined annual nameplate production capacity of 257 million gallons. With the addition of the Geismar facility, the company’s total advanced biofuel annual nameplate production capacity would increase to 332 million gallons.

Joule Achieves ASTM Compliance for Sustainable Diesel And Jet Fuel

Joule today announced that itsSunflow®-D and Sunflow®-J products meet the standards of the American Society for Testing and Materials (ASTM) for diesel and jet fuel, respectively. Joule products achieve all accepted standards for fuel performance, and they may also improve quality of the finished fuel blends, as demonstrated by the test results.

“Today’s news marks an important milestone for our hydrocarbon fuel program,” said Dr. Dan Robertson, Chief Scientific Officer of Joule, who will discuss this and other Joule advancements today at the BIO World Congress on Industrial Biotechnology. “Joule has uniquely engineered pathways to produce pure alkane molecules, able to ‘drop in’ to finished blends in high concentrations without chemical upgrading. In demonstrating ASTM compliance, we have affirmed the value of these CO₂-derived hydrocarbon fuels and paved the way for market adoption.”

ASTM test regimes address a number of critical fuel requirements, such as performance (e.g. cetane or octane, aromaticity, viscosity, etc.), engine wear, transportability and post-combustion air quality. The C11 alkane molecule which comprises Joule Sunflow-D and Sunflow-J was tested with the following results:

• Joule Sunflow-D meets the ASTM D-975 standard for diesel in blend percentages of up to 50%.
  The product achieved a high cetane number of 80, improving with increased concentrations of the Joule molecule and indicating a positive trend for combustion quality. The finished blends demonstrated reduced sulfur oxide (SOx), nitrogen oxide (NOx) and volatile organic compounds (VOCs), thus improving the quality of conventional diesel.
• Joule Sunflow-J meets the ASTM D-1655 standard for jet A/A1 fuel in blend percentages of up to 25%, complying with requirements for turbine performance, engine wear and air quality.

Renewable oils and fatty esters, such as biodiesel, require chemical upgrading before they can be blended with fossil fuels, and then only in low concentrations. In contrast, Joule produces alkane molecules that are inherently “blendable” with fossil fuels in high concentrations (up to 50%) – thus displacing more fossil-derived oil with no chemical upgrading required.

GreenShift Extends On-Going Service Contract with Sunoco

GS CleanTech Corporation today announced it has extended its on-going service contract with Sunoco Inc through the end of 2016. The contract calls for GS CleanTech to provide maintenance and corn oil yield enhancements for the Corn Oil Extraction System licensed to Sunoco at its Fulton ethanol plant.

Whit Davis, GreenShift’s Engineer in charge of the Sunoco account, said “we enjoy working with oil refiners who have ethanol assets. We see that they appreciate the renewable benefit ethanol provides the consumer and the environment as well as adding a different level of professionalism to the industry we at GreenShift so proudly serve.”

10 New E15 Stations Open In Wisconsin Due To Increasing Consumer Demand

In a boost to rural communities, Beaver Dam, Wis.-based United Cooperative is offering E15 (15 percent ethanol, 85 percent gasoline) at 10 stations throughout Wisconsin. United Cooperative introduced blender pumps at their Cenex convenience stores in Beaver Dam, Baraboo, Hustisford, Iron Ridge, Pickett, Poynette, Reedsburg, Watertown, and Wyocena.

The addition of these Wisconsin convenience stores bumps the total number of E15 stations to 75 in 12 states that offer the higher-level fuel blend to those with vehicles 2001 and newer. United Cooperative’s convenience stores also offer mid-level blends including E30 and E85, which are available for use in flex-fuel vehicles.

“United Cooperative understands the vital importance of choice in the transportation fuel market. The addition of blender pumps to these 10 stations give the people of Wisconsin access to E15, E30, and E85, all low-cost fuel options,” said Robert White, director of market development at the Renewable Fuels Association. “The expansion of E15 in Wisconsin is only the beginning as retailers continue to see the economic benefits of installing blender pumps and offering higher-level ethanol blends to their customers.”

David Cramer, United Cooperative president and chief executive officer, noted, “Ethanol-blended fuels like E15 are better for the environment, originate from locally-grown corn, and reduce our dependence on foreign oil. United Cooperative enjoys offering our customers multiple ethanol options at the pump and doing our part to support the American economy.”

E15 is the most tested fuel additive in the history of the Environmental Protection Agency (EPA). It was approved by the EPA for use in 2001 and newer vehicles after 6.5 million miles of testing. It was introduced into the market in July of 2012 and has been driven more than 65 million miles with no known cases of engine damage or misfueling.

Wisconsin United Cooperative Cenex convenience stores offering E15:

Baraboo Cenex
516 Ash St.
Baraboo, WI 53913

Baraboo Cenex
S3553 County Road BD
Baraboo, WI 53913

Beaver Dam Cenex
N7160 Raceway Road
Beaver Dam, WI 53916

Hustisford Cenex
326 W. Juneau St.
Hustisford, WI 53034

Iron Ridge Cenex
210 W. Pleasant St.
Iron Ridge, WI 53035

Pickett Cenex
6644 State Road 44
Pickett, WI 54964

Poynette Cenex
523 N. Hwy. 51
Poynette, WI 53955

Reedsburg Cenex
306 E. Main St.
Reedsburg, WI 53959

Watertown Cenex
821 N. Church St.
Watertown, WI 53098

Wyocena Cenex
123 Washington St.
Wyocena, WI 53969

CHS Agrees To Acquire Illinois River Energy Ethanol Plant

CHS Inc. announced recently that it had signed an agreement with Sinav Limited, London, England, to acquire 100 percent of the company's stock, which includes Illinois River Energy, LLC, a 133-million-gallon-per-year ethanol plant in Rochelle, Illinois.

Providing all conditions are met, the transaction is expected to close in June.

"Illinois River Energy is a top-tier ethanol plant, well-situated in a strategic growth area that will add value to our farmer-owners through expanded grain origination, additional renewable fuels gallons and distillers grain by-products," said Mark Palmquist, CHS executive vice president and chief operating officer, Ag Business. 

CHS markets renewable fuels to energy customers across the U.S. and through 1,400 Cenex- branded retail petroleum outlets, including more than 1,000 Cenex convenience stores, and markets dried distillers grains with solubles (DDGS) globally on behalf of more than 20 ethanol plants across the United States. 

"We have enjoyed a strong business relationship with CHS as they have been our ethanol marketer since the start of Illinois River Energy operations in 2006. Today, we look forward to formally joining CHS and adding value to the global cooperative as an ethanol, DDGS, and distillers corn oil producer," said Richard Ruebe, CEO, Illinois River Energy.

Springboard Biodiesel Announces Grand Opening of New Closed Loop Production Facility

Springboard Biodiesel announced that it will officially enter a new phase of biodiesel production with the grand opening of its model processing facility in Chico, California on May 1.

Until now, the Company has focused exclusively on manufacturing small-scale, standalone biodiesel production systems. With equipment currently operating in 21 countries and all 50 states, this facet of the business continues strong, but with the new production facility Springboard is poised to produce and sell 1,000 gallons per day of ASTM-D6751 grade biodiesel.

Working in concert with the company’s used cooking oil (UCO) collection partner, Smart Alternative Fuels, based in Redding, CA., Springboard will be processing locally collected UCO into ASTM-grade biodiesel and thereby providing organizations in Butte County and its environs access to cleaner-burning, locally produced biodiesel.

Biodiesel is a global commodity that is increasingly used in fleets around the country, as fleet managers try to better manage their carbon emissions without expensive equipment changes. Springboard CEO, Mark Roberts, notes, “Using biodiesel made from UCO will reduce the driver’s CO2 emissions by as much as 90 percent, while simultaneously reducing particulate matter by 50 percent, and because we are able to price our biodiesel to compete with diesel, these are ‘free’ benefits of incorporating biodiesel into your fleet management logistics.”

With biodiesel, no engine conversion is necessary for diesel vehicles to use the fuel. “You just pump and go,” says Roberts. He adds, “An additional benefit, is the superior lubricity present in biodiesel. It burns with less wear than other fuels and can actually smooth out louder engines.”

The California Energy Commission (CEC) played a significant role in the development of this "first in the state" small-scale biodiesel production facility. The CEC awarded a grant through its Alternative and Renewable Fuel and Vehicle Technology program to assist in the development with the intention that this facility will serve as a model to be replicated in other communities.

The CEC program goal is to reduce transportation greenhouse gas emissions (GHG). This model not only reduces GHG through the use of biodiesel vs. diesel, but the concept of small-scale production plants throughout the state, versus large refineries, reduces the carbon intensity by using local by-product feedstock and local distribution.

Springboard’s proprietary system is able to process multiple types of feedstock in an automated environment that assures repeatable, high-quality fuel production at competitive prices. Roberts concluded, “A lot of work has gone into assuring that our CLL system is as safe and reliable as any out there, and we believe that this coupled with our small-scale by design approach will allow us to more effectively proliferate access to affordable biodiesel throughout California.”

Guided tours will be available at the grand opening on Thursday, May 1, 5:30 to 7:30 p.m., at the Chico facility.

January 2014 Biodiesel Production Slips Lower

Biodiesel production decreased in January 2014 to 67,704,000 gallons, down from 135,114,000 gallons in December 2013. Even though biodiesel production dropped to roughly half of Decembers production, it was up slightly from January 2013 when 66,276,000 were produced.

Biodiesel consumption was also lower in January 2014 with 86,016,000 gallons consumed, down from December 2013 when 174,552,000 gallons were consumed. As with production numbers, consumption also increased from January 2013 when 69,342,000 gallons were consumed.

Source : EIA

Lufthansa to Evaluate Gevo's Renewable Jet Fuel

Gevo, Inc.announced yesterday that it has come to an agreement with Lufthansa to evaluate Gevo's renewable jet fuel with the goal of approving Gevo's alcohol-to-jet fuel (ATJ) for commercial aviation use.

"ATJ, like the Fischer-Tropsch pathway, has the potential to use lignocellulosic waste as feedstock, but promises to do so at less cost than Fischer-Tropsch," said Alexander Zschocke, Lufthansa Group Senior Manager Aviation Biofuels.  Lufthansa is a leader in the marketplace for alternative fuels.

"By using isobutanol as a renewable raw material for producing jet fuel, the resulting jet fuel has the mixtures of molecules typical of petro-based jet fuel making it directly compatible with engines and infrastructure.  Renewable jet embodies the potential of cleaner, greener, and as we scale up, cost competitive drop-in fuels," said Patrick Gruber, Gevo's chief executive officer. "We greatly appreciate Lufthansa's and the European Commission's support of this effort. Through initiatives like this, the commercial airlines are seeking to prove out ATJ and move it towards commercialization. ATJ from Gevo's isobutanol is a clean burning, homegrown, drop-in jet fuel, and we have a potential route to deliver aviation biofuels at scale and at competitive cost." 

Gevo's patented ATJ fuel is truly a drop-in fuel, designed to be fully compliant with aviation fuel specifications and provide equal performance, including fit-for-purpose properties.

Renewable Energy Group Achieves One Billion Gallon Milestone

Renewable Energy Group, Inc. announced today that it has reached a new milestone, having sold a cumulative one billion gallons of advanced biofuel during its 17 year history.

“On behalf of the board of directors and employees of REG, I want to say thank you to all of our customers; vendors; investors; federal, state and local supporters; partners; and team members over the years without whom we could never have met this milestone,” said Daniel J. Oh, REG President and Chief Executive Officer.

REG achieved this milestone through investments in a fully integrated value chain including its manufacturing, sales & marketing, and supply chain management capabilities. The company also committed itself to research and development as well as continuous improvement, allowing it to streamline the production process and broadly expand the variety of raw materials used to make biodiesel.

“Since our inception we have endeavored to provide customers with a reliable and durable product that helps diversify the energy complex and increases energy security, improves our environment, and supports agriculture,” Oh said. “Our desire to continuously deliver quality products is a driving force behind REG reaching the billion gallon mark.”

“While we are a company that went from marketing 30,000 gallons of biodiesel in 1996 to more than 258 million gallons last year, we still remember what it took to get here and those who helped us,” said Jeff Stroburg, Chairman of the REG Board of Directors. “We remain committed to investing in our advanced biofuels and renewable chemicals capabilities.”

REG was formed and began operating as an independent company in 2006, as the successor to the biodiesel operations of West Central Cooperative in Ralston, IA, which first began producing biodiesel from a one million gallon per year batch plant in 1996. Private investors, including West Central, provided capital enabling the company to grow, both organically and through acquisitions in California, Florida, Georgia, Illinois, Iowa, Minnesota, New Hampshire, New Mexico, New York, New Jersey and Texas. In January 2012, REG became a publicly traded company listed on the NASDAQ stock exchange and trades under the ticker REGI.

Obama Administration Delays Decision On Keystone XL Pipeline

The Obama administration announced that it was delaying a decision on the Keystone XL pipeline with this press release from the State Department.

On April 18, 2014, the Department of State notified the eight federal agencies specified in Executive Order 13337 we will provide more time for the submission of their views on the proposed Keystone Pipeline Project.

Agencies need additional time based on the uncertainty created by the on-going litigation in the Nebraska Supreme Court which could ultimately affect the pipeline route in that state.

In addition, during this time we will review and appropriately consider the unprecedented number of new public comments, approximately 2.5 million, received during the public comment period that closed on March 7, 2014.

The agency consultation process is not starting over. The process is ongoing, and the Department and relevant agencies are actively continuing their work in assessing the Permit application.

The Permit process will conclude once factors that have a significant impact on determining the national interest of the proposed project have been evaluated and appropriately reflected in the decision documents. The Department will give the agencies sufficient time to submit their views.

The American Petroleum Institute expressed their disappointment in the delay with the following press release.

The White House move to further the delay a decision on the Keystone XL pipeline after almost six years of exhaustive review is not in our national interest and Congress should act, API President and CEO Jack Gerard said today.
 

“It’s a sad day for America’s workers when politics trumps job creating policy at the White House,” said Gerard. “After nearly six years of review, repeated research on the pipeline’s benefits to economic security and job growth, numerous studies confirming no significant environmental impacts, with the backing of organized labor, and poll after poll showing the support of American voters – if the White House lacks the political leadership to make a decision, we call on Congress to represent the will of the people and act.

“Strong majorities in the House and the Senate have publicly called for Keystone XL’s approval. Now they have a chance to show the voters they are ready to put job creation, economic growth, and our country’s energy security first.

“It’s ironic that Vice President Biden is promoting pipeline development in response to the Ukrainian crisis, while the administration cannot make a decision on one of our own.”

API represents all segments of America’s oil and natural gas industry. Its more than 600 members produce, process, and distribute most of the nation’s energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.

SoCalGas Unveils Company-Branded, Public-Access Compressed Natural Gas Refueling Station

Southern California Gas Co. (SoCalGas) today unveiled its newly company-branded, public-access natural gas vehicle (NGV) refueling station in Los Angeles County. Located at the company's operating base at 44416 Division St. in the city of Lancaster, the retail station is open 24 hours a day and features a fast-fill dispenser to serve individual and fleet owners of NGVs, including sedans, vans, pickups, and school buses.

The new SoCalGas refueling station features two natural gas dispenser hoses served by a powerful natural gas compressor for improved fill speed and increased reliability. In addition, modern dispensing nozzles can be operated with one hand, while new overhead canopies protect customers from sun and rain. Energy-efficient LED signage enables motorists to compare natural gas fuel prices, and drought-tolerant landscaping adds environmentally friendly appeal.

SoCalGas currently operates 19 CNG refueling stations to serve its own utility fleet of more than 1,000 SoCalGas NGVs, with 11 of these stations open to the general public.

"We are pleased to offer refueling services under the trusted Southern California Gas Company brand to anyone who wants to take advantage of the economic and environmental benefits of natural gas," said Rodger Schwecke, vice president of customer solutions for SoCalGas. "We consider affordable, abundant, domestically produced natural gas as the energy of possibility and a fuel that can power a clean environment and propel our nation toward energy independence."

With the average price of natural gas at around $2 per gasoline gallon equivalent (GGE), drivers of natural gas vehicles can achieve annual cost savings up to 50 percent compared to gasoline, in addition to tremendous air quality benefits provided by NGVs.

Chevrolet and GMC Announce CNG Pricing Options

Image © General Motors

Bi-fuel options, allowing either compressed natural gas or gasoline to power the 2015Chevrolet Silverado and GMC Sierra 2500HD and 3500HD pickups, will start at $9,500. A dedicated CNG option on the 2015 Chevrolet Express and GMC Savana cargo and passenger short-wheelbase vans starts $10,825 for the three-tank system and $12,090 for the four-tank system.

“Based on current average fuel prices, CNG is more than a dollar cheaper than an equivalent gallon of gasoline, giving drivers and businesses an incentive to use CNG to power their vehicles,” said Ed Peper, U.S. vice president, General Motors Fleet and Commercial. “Given the consistent cost savings and expanding infrastructure, both commercial and individual interest in CNG vehicles continues to grow.”

The bi-fuel CNG option will be available on all 2015 Silverado and Sierra 2500HD and 3500HD single-rear-wheel models. The Express and Savana vans have fully dedicated CNG fuel systems – available in three- or four-tank models on cargo vans and exclusively with the three-tank design on passenger vans. 

GM warrants and validates the fuel systems on all of its CNG trucks, vans and the upcoming bi-fuel Chevrolet Impala sedan through its five-year/100,000-mile – whichever comes first – powertrain limited warranty. All major components associated with the CNG system also carry GM service part numbers for availability throughout the largest dealer network in the United States.

CNG versions of the Silverado and Sierra 2500HD double cab and crew cab and the full-size Express and Savana vans are on sale now. The Silverado and Sierra 2500HD regular cab and all 3500HD pickups go on sale in July.

Where to Buy E85 and Biodiesel

Here are some websites and other resources for locating alternative fuels refueling stations.

E85

Websites

• Ethanol Retailer
• Alternative Fuels Data Center
• AltFuelPrices
• E85Prices

Mobile Websites

• Mobile Alternative Fueling Station Locator

Mobile Phone Apps

• RFA Flex-Fuel Station Locator for Android : iPhone
• Growth Energy Flex Finder for Android : iPhone
• AFDC Alternative Fueling Station Locator for  iPhone

Biodiesel

Websites

• National Biodiesel Board
• Alternative Fuels Data Center
• AltFuelPrices

Mobile Websites

• Mobile Alternative Fueling Station Locator

Mobile Phone Apps

• BiodieselNOW for Android : iPhone
• Biodiesel Buddy Lite for Android : iPhone

U.S. Annual Crude Oil Consumption

According to the EIA:

 For consumption, see Product Supplied, which approximately represents consumption of petroleum products because it measures the disappearance of these products from primary sources, i.e., refineries, natural gas processing plants, blending plants, pipelines, and bulk terminals.

Only a relatively small amount of crude oil is consumed directly in the United States.  Nearly all crude oil is refined into petroleum products such as gasoline, diesel fuel, heating oil, and jet fuel, which are then consumed.  Liquids produced from natural gas processing are also consumed as petroleum products.  Renewable biofuels, such as ethanol and biodiesel, can be used as a substitute for or an additive to refined petroleum products.  EIA includes volumes of biofuels in data on total petroleum consumption.

In 2013, the United States consumed a total of 6.89 billion barrels of petroleum products, an average of 18.89 million barrels per day. This total includes about 0.32 billion barrels of biofuels.

Source : EIA

ILUC Unverifiable and Biofuels Economically Beneficial, Says IPCC

The United Nations Intergovernmental Panel on Climate Change (UN IPCC) released their “Bioenergy and Climate Change Mitigation: An Assessment” report in Berlin on Sunday that confirmed that biofuels production is economically beneficial and that Indirect Land Use Change (ILUC) modelling is unverifiable.

“Sunday’s report from the IPCC is further proof that biofuels contribute to local economies and that Indirect Land Use Change modelling is nothing more than a flawed theory,” stated Bliss Baker, spokesperson for the GRFA.

The UN IPCC report found that “Bioenergy projects can be economically beneficial, by raising and diversifying farm incomes and increasing rural employment through the production of biofuels for domestic or export markets.”

The IPCC report went on further to say that “Brazilian sugar cane ethanol production provides six times more jobs than the Brazilian petroleum sector and spreads income benefits across numerous municipalities…Worker income is higher than in nearly all other agricultural sectors and several sustainability standards have been adopted.”

The IPCC report’s findings are consistent with a 2012 GRFA report which found that global ethanol production in 2010 supported nearly 1.4 million jobs in all sectors worldwide and contributed over $273 million to the global economy. In the European Union alone the ethanol industry created 70,000 direct and indirect jobs. The IPCC report also reinforces a recent study conducted by ABF Economics, which found that the U.S ethanol industry in 2013 created 86,503 jobs, sustained an additional 300,277 indirect and induced jobs while contributing $44 billion to the United States’ Gross Domestic Product and added $30.7 billion to household incomes.

“Not only do biofuels, particularly ethanol, have the lowest CO2 abatements compared to any other renewable energy but the latest IPCC climate change mitigation report confirmed that they make significant contributions to economies around the world and in some cases like Brazil, biofuels employment is eclipsing crude oil,” stated Baker.

The IPCC report contained another significant finding regarding Indirect Land Use Change, an attempt to predict future land use patterns globally. The report stated that “These estimates of global LUC (Land Use Change) are highly uncertain, unobservable, unverifiable, and dependent on assumed policy, economic contexts, and inputs used in the modelling.”

These significant findings mean that the United Nations Intergovernmental Panel on Climate Change has joined the overwhelming number of scientists and academics that have found the ILUC theory to be faulty because modeling relies on hundreds of assumptions, not facts, to predict future land use patterns around the world.

“The GRFA applauds the UN for recognizing that the ILUC theory has no ability to accurately predict future land use patterns and hopefully it can now focus on the real challenges to food security like rising crude oil prices and food waste,” concluded Baker.

The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 65% of the global biofuels production from 44 countries. Through the development of new technologies and best practices, Alliance members are committed to producing renewable fuels with the smallest possible footprint.

Vireol Bio Energy To Commission The Former Osage Bio Energy Ethanol Plant

Vireol Bio Energy LLC will commission the former Osage Bio Energy facility and begin production of ethanol in the City of Hopewell.  The company, which will produce ethanol from corn, barley and other small grains, will invest more than $26.2 million to begin production at the facility, creating 70 new jobs in the process.  The new state of the art plant will be the largest ethanol plant on the East Coast of the United States. The Commonwealth of Virginia is partnering with the City of Hopewell and Vireol Bio Energy on this project through the Governor’s Agriculture and Forestry Industries Development Fund (AFID).

Peter McGenity, Chief Executive at Vireol Bio Energy LLC stated, “We’re delighted to announce that we will be starting production of renewable ethanol this month and we are looking forward to a long and successful future for Vireol in the Commonwealth of Virginia. We greatly appreciate the wide-ranging support from our US partners, including the Commonwealth of Virginia and the City of Hopewell. Governor McAuliffe and the Commonwealth have recognized the potential of this opportunity and have provided us with the perfect springboard to launch into the US. Their support has been central to the decision to invest on the other side of the Atlantic.”

In addition to the investment and jobs created in Hopewell, Vireol Bio Energy will spend more than $100 million to purchase from Virginia producers approximately 21.7 million bushels of grains that the company will need over the next three years, providing new opportunities for Virginia’s farmers.  Vireol Bio Energy plans to produce over 170 million gallons of ethanol over a three year period, utilizing corn, wheat and barley, which will ultimately be blended with gasoline for fuel. 

The company will improve the facility’s ethanol production capabilities as well as expand and construct new value-added processes at the site.  One major co-produce byproduct of Vireol Bio Energy’s ethanol production are dried distiller grains (DDGs), a high protein feed ingredient, sought out by poultry and livestock producers.  The company is also investing in a facility to capture the high-quality carbon dioxide that is created during fermentation that is utilized for beverage carbonation and food preservation.

A $250,000 AFID grant is being awarded to the City of Hopewell to assist the Vireol Bio Energy in the restart and expansion of the ethanol plant.  Hopewell is providing a rebate of their local machinery and tool tax, an incentive offered to businesses in their Enterprise Zone, as the required local match for the grant.  The company will also receive Virginia Jobs Investment Program (VJIP) employee training incentives, various state Enterprise Zone incentives and qualifies for the Biofuels Production Incentive Grant, recently passed by the General Assembly.

Iowa Corn Promotion Board Receives U.S. Patent for Nitrogen Gene

The Iowa Corn Promotion Board is the recipient of a newly issued patent from the U.S. Patent and Trademark Office.  This is the first U.S. patent that the Iowa Corn Promotion Board has received for its work in nitrogen use efficiency in corn and related to transgenic plants that have increased nitrogen use efficiency, and/or increased yield using a patented gene.  Specifically, patent 8,692,070, Plants with Improved Nitrogen Utilization and Stress Tolerance demonstrates Iowa Corn’s commitment to improving farmer productivity even to the gene level.

“The Iowa Corn Promotion Board collaborated with Strathkirn Inc. and Athenix Corp. to develop improved corn plants that are more efficient in using nitrogen fertilizer,” said Larry Klever, a farmer from Audubon and chair of the Iowa Corn Research and Business Development Committee.  “This new trait could result in improved economics on the farm, reduced impact on the environment and reduced energy requirements to grow a corn crop.”

The objectives of the research are either to increase yield without increasing the amount of nitrogen fertilizer or obtain the same yield with less fertilizer.  Data indicates this patented gene assimilates more nitrogen and increases kernel number, which could translate to greater yields for Iowa farmers.

By patenting this technology, the Iowa Corn Promotion Board is able to provide protection for partners who would like to license this technology. “The goal is to get this trait licensed and commercialized by seed companies for commercialization so that farmers, like me, can benefit,” said Klever.

The Plants with Improved Nitrogen Utilization and Stress Tolerance patent number is 8,692,070 and was issued on April 8, 2014.  A patent for this technology has also been awarded to the Iowa Corn Promotion Board by South Africa.  Patents for this gene in other countries are still pending approval of the respective patent offices.

Poll Shows That Americans Overwhelmingly Support The Renewable Fuel Standard

For the third year in a row, Americans, by an overwhelming majority, consistently support the Renewable Fuel Standard (RFS) and other key federal initiatives supporting the expanded use of ethanol. A new national poll conducted by American Viewpoint found 65 percent of adults support the RFS, while just 26 percent are opposed. Support for the RFS has been steadily rising. In 2013, 64 percent polled supported the policy, up from 61 percent in 2012.

As you may know, there is currently a renewable fuels standard that requires a certain amount of the fuel produced each year to come from ethanol, bio-diesel and other renewable sources that aren’t fossil fuels to reduce foreign oil dependence and greenhouse gas emissions. Do you favor or oppose this requirement?

Favor: 65%
Oppose: 26%
Don’t Know: 8%

RFA’s President and CEO Bob Dinneen commented, “It is telling that support for the RFS continues to grow in spite of the relentless attacks on ethanol and the RFS financed by Big Oil’s deep pockets. Repeatedly Americans have decisively said they place a premium on energy independence, job creation, and a cleaner environment. For these reasons and more, Americans overwhelmingly support the RFS for its ability to strengthen this great nation. Members of Congress and the Obama Administration should review this data before taking action to reduce or eliminate a program with broad national appeal and tangible energy and environmental benefits.”

Expanding on the polling results, Dinneen continued, “Americans see great value in investing in the next generation of fuel, cellulosic ethanol, and they support the idea of an open fuel standard which encourages the manufacturing of cars that run on any number of alternatives to petroleum. In fact, Americans appear to have a visceral dislike for the billions and billions of dollars in government subsidies and special tax treatment that Big Oil has enjoyed for 100 years.”

The government has considered giving incentives to help fund the expansion of a new fuel known as Cellulosic ethanol, which is a biofuel produced from wood, grasses and other non-edible parts of plants. Do you favor or oppose these incentives?

Favor: 66%
Oppose: 24%
Don’t Know: 9%

Do you favor or oppose requiring automobile manufacturers to build cars that will run on fuel sources other than oil, such as electricity, natural gas and bio-fuels?

Favor: 78%
Oppose: 19%
Don’t Know: 3%

As you may know, oil companies receive four to five billion dollars in government subsidies and special tax treatment and incentives for things like equipment depreciation, oil depletion allowances, and foreign investment tax credits for taxes they pay in foreign countries. Do you favor or oppose these tax incentives?

Favor: 22%
Oppose: 66%
Don’t know: 11%

The new poll was commissioned by RFA and conducted by American Viewpoint. The poll was conducted via phone with a sample size of 1,000 adults. Margin of error in the poll is +/- 3.1 percent. Approximately 40 percent of respondents were contacted by cell phone.

Linda DiVall, President of American Viewpoint, analyzed several keys themes from the polling results:

“Despite the barrage of negative advertising targeting ethanol recently, ethanol’s image has held strong, largely unchanged from last year. More telling is the fact that the unfavorable rating of oil companies has climbed five percentage points to 47 percent, with a plurality of Americans rating oil companies unfavorably.”

“That rise in negative opinion of oil companies certainly manifests itself in the 66 percent of adults polled who desire a level playing field among fuels and resent the subsidies and special treatment oil companies have held onto at the expense of the American taxpayer.”

DiVall concluded, “The ethanol industry must not be deterred from telling its story. It should stand proudly and champion its ability to significantly reduce greenhouse gases, lower our dependence on foreign oil, create quality jobs, and reduce fuel costs for American drivers. Ethanol, thanks in large part to the RFS, is a fuel with a proven track record of success and a promising future.

Syngenta In Cellulosic Ethanol Collaboration To Increase Ethanol Plant Productivity

Syngenta announced today an agreement with Cellulosic Ethanol Technologies to license its ACE (Adding Cellulosic Ethanol) technology, a new process for ethanol plants. 

ACE technology has been shown to significantly increase a plant's ethanol production while delivering other benefits such as increased corn oil production and higher protein content in Dried Distillers Grains (DDGs), an ethanol by-product used for animal feed.

In combination with Syngenta's proprietary Enogen corn trait, ACE technology allows the fiber as well as the starch in a corn kernel to be converted into ethanol. Enogen is the only corn output trait designed specifically to enhance ethanol production. It is expected that the ACE-Enogen offer will enable ethanol plants to make further progress in reducing natural gas usage and increasing ethanol throughput, thereby improving their carbon footprint.

Davor Pisk, COO of Syngenta, said: "The adoption of Enogen in ethanol plants is accelerating, with six commercial contracts signed. The introduction of ACE technology will further drive growth. It has the potential to improve substantially both the profitability and sustainability of ethanol plants, enabling them to produce more energy with fewer resources."

Cellulosic Ethanol Technologies, LLC, is a subsidiary of Quad County Corn Processors (QCCP). Use of the ACE technology is scheduled to begin at QCCP's ethanol plant in Galva, Iowa in May 2014.

Delayne Johnson, CEO of QCCP, said: "The combination of ACE technology and Enogen corn is expected to generate significant synergies when used together in dry grind ethanol plants. This launch represents a major advance in the production of cellulosic ethanol."

U.S. On-Highway Diesel Fuel Consumption

U.S. No 2 Diesel Sales/Deliveries to On-Highway Consumers

2012 - 36,343,072,000 Gallons
2011 - 36,160,308,000 Gallons
2010 - 35,582,625,000 Gallons
2009 - 34,147,806,000 Gallons
2008 - 37,528,464,000 Gallons
2007 - 39,801,744,000 Gallons
2006 - 39,118,301,000 Gallons
2005 - 38,053,129,000 Gallons
2004 - 37,125,239,000 Gallons
2003 - 35,254,441,000 Gallons
2002 - 34,308,885,000 Gallons
2001 - 33,215,320,000 Gallons

Just for comparison, in 2012 the U.S. consumed 133,462,854,000 gallons of gasoline.

Clean Energy Fuels Opens Newest Public CNG Station at JFK International Airport

Clean Energy Fuels Corp., today announced fueling has begun at its newest public access CNG station in New York, which is located at JFK International Airport within the newly-opened JFK multi-fuel travel plaza, the only travel plaza in New York City available to motorists. Clean Energy will be fueling many types of fleets including refuse trucks, heavy and medium duty trucks, ready-mix concrete trucks, as well as shuttles and taxis that directly serve JFK travelers.

“CNG is an important fueling option for New York businesses and has proven to be a reliable fuel for the people of New York during times of natural disaster,” said Peter Grace, senior vice president of sales and finance at Clean Energy. “We congratulate Airport Plaza for today’s grand opening and are proud to be the CNG provider at this innovative alternative fueling station.”

The new public CNG station is open 24/7 and accepts credit cards and fleet fuel cards. In addition to CNG, the JFK travel plaza also features other alternative fuels, such as E-85, electric vehicle charging stations, as well as conventional gasoline and diesel. However, CNG is the only alternative fuel which can meet the fueling needs of vehicles ranging from taxis to heavy-duty trucks which will be fueling at this station.

“As one of the first ready-mix companies in the United States to utilize natural gas in our ready-mix concrete mixers, we’re excited about fueling with Clean Energy,” said Bob Gartman, vice president of operations, Ferrara Brothers Building Materials Corp. “As a local Queens company based in Flushing, our CNG fueling will not only positively impact the surrounding community and environment, limiting the need for foreign oil, but will also positively impact our bottom line.”

Clean Energy is now successfully operating at every international airport in the Northeast and currently operates over thirty public stations in the Tri-State area.

“The New York Department of Sanitation’s municipal refuse fleet is the largest in the nation and requires a fueling partner who can meet the demands of our fleet,” said Rocco DiRico, deputy commissioner, New York City Department of Sanitation. “The new JFK CNG station makes fueling even easier for our department.”

Natural gas fuel costs up to $1.50 less per gallon than gasoline or diesel, depending on local market conditions. The use of natural gas fuel not only reduces operating costs for vehicles, but also reduces greenhouse gas emissions up to 30% in light-duty vehicles and 23% in medium to heavy-duty vehicles. In addition, nearly all natural gas consumed in North America is produced domestically.

Aurora Algae Expands Operation in South Texas

Following six months of testing and evaluation, Aurora Algae has confirmed the potential for commercial-scale algae cultivation in South Texas, and is expanding its test facility, beginning with four, one-acre cultivation ponds and a harvesting system.

“We have successfully tested our algae cultivation system in countries around the world, including Australia, India, Italy, Mexico, and multiple locations in the United States,” said Greg Bafalis, Aurora Algae CEO. “Our most recent test site, near Harlingen, Texas, is meeting and surpassing our growth rate expectations for this area.”

Aurora Algae operated a demonstration-scale algae cultivation facility in Karratha, Western Australia, for over two-and-a-half years, successfully demonstrating production of up to 15 tonnes of dried algal biomass per month while continuing to refine its cultivation and harvesting processes. Aurora management believes the Karratha facility to have been the most technologically advanced algae production system in the world.

Research and development activities at the Karratha facility were concluded in December 2013, and the Company turned its focus to the commercialization of its proprietary algae cultivation process.

Located nine miles from Harlingen, the Aurora Algae evaluation site in Rio Hondo, Texas, sits on a 1,880-acre parcel, which was formerly home to a shrimp farming operation.

“Our algae grow best in salt water, in warm climates without too much rainfall,” explained Bafalis. “From our initial testing, South Texas looks like a great fit for our requirements. Early results are extremely encouraging, and we are excited by the possibility of building our first commercial-scale operation on American soil.”

BIO Encourages EPA to Speed Approvals of New Biofuel Pathways

In response to the Environmental Protection Agency’s (EPA) announcement it will halt new petitions for renewable fuel pathways for approximately six months, the Biotechnology Industry Organization (BIO) today urged the agency to speed up rather than slow down the Petition Process for New Renewable Fuel Pathways under the Renewable Fuel Standard (RFS). EPA first established the petition process in March 2010, as it finalized the rules for the RFS.

Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section, said, “EPA’s effort to improve the petition process for new renewable fuel pathways under the RFS is welcome. But the agency should aim to complete this review process in a more timely manner.

“Advanced biofuel companies need a pathway to the fuel market in order to attract necessary investment to build and start up new production facilities that create new jobs. The lengthy wait for approval of new pathways chills job creation and investment in the sector.

“In the past four years, EPA has completed fewer than half of the 62 petitions it has received for new renewable fuel pathways under the RFS. More than 36 petitions are still awaiting action – either approval or denial – and the average time that all petitioning companies have waited is currently 17 months. Companies filing cellulosic biofuel pathway petitions have faced the longest wait times – on average 24 months. This delay has slowed deployment of new advanced biofuel technologies.

“Combined with the proposed rule the proposed delay of the petition process may further undermine the development of advanced and cellulosic biofuels just as they are set to produce millions of commercial gallons and launch a rapid scale up.”

Purdue Researchers Launch Innovative Biomass Renewable Energy Company

Mahdi Abu-Omar

Purdue University researchers are launching a company focusing on an innovative process that could revolutionize how lignocellulosic biomass is used to make biofuels and other bio-based products and chemicals.

Spero Energy Inc., which is based in the Purdue Research Park, will be led by Mahdi Abu-Omar, the R.B. Wetherill Professor of Chemistry and Chemical Engineering and associate director of Purdue's Center for Direct Catalytic Conversion of Biomass to Biofuels (C3Bio).

"Spero Energy's transformative technology of making high-value chemical products from lignin with simultaneous production of lignin-free cellulose in one step, is a significant step toward our nation's pursuit of renewable energy sources," said Abu-Omar, division head of inorganic chemistry and associate director of C3Bio. "The lignin-derived Spero products also are expected to provide this new company an entry into the aromatic specialty chemicals market."

Current biorefinery processes for producing cellulosic ethanol make use of the carbohydrates in the biomass. The lignin, accounting for more than 35 percent of the carbon in biomass, is often used in low-value applications such as heat generation.

Spero's technology portfolio, based on research efforts at C3Bio, centers on novel catalytic processes for converting lignin in wood biomass and waste to liquid chemical products. These chemicals have applications in flavoring and fragrance in addition to high-octane fuels and high-value materials, Abu-Omar said.

The process developed by Spero - its name means "hope" in Latin - produces lignin-free cellulose that can be easily converted into fermentable sugars and sugar-derived, high-value chemicals. It focuses on the delignification of mechanically milled and shredded wood with lignin conversion to methoxypropylphenols with a bifunctional catalyst under mild thermal conditions.

Phenols, which currently are manufactured from petroleum feedstock through multistep processes, are high-value fragrance and flavor compounds.

Current biofuel production is a multistep process, with carbohydrates separated from lignin in a pretreatment process, generally using acid and high temperatures.

For ethanol production, enzymes break down plant material carbohydrates into sugars, which are fermented using yeast. The yeast, using the sugars as food, creates ethanol.

Lignin, however, acts as a physical barrier in plant cell walls, making it difficult for enzymes to break down the biomass, and a chemical barrier by poisoning the enzymes. Without expensive pretreatment, the enzymes get to less than 20 percent of the biomass sugars.

Basudeb Saha, an associate research scientist at Purdue, will serve as chief technology officer of the new company, and postdoctoral researcher Trenton Parsell, with doctoral students Ian Klein and Barron Hewetson, are part of Spero's technical team. Agricultural and biological engineering professor Nathan Mosier and chemical engineering professor Fabio Ribeiro are scientific advisers.

Spero is a spinoff of efforts by Purdue researchers working on the U.S. Department of Energy-funded C3Bio project at Purdue. Affiliated with Discovery Park's Energy Center and the Bindley Bioscience Center, C3Bio also is investigating how to produce fuels that closely resemble gasoline in terms of their molecular makeup and energy density.

"We're excited about how our DOE-funded C3Bio team at Purdue is advancing this high-risk, high-reward research effort," said biological sciences professor Maureen McCann, director of C3Bio and the Purdue Energy Center. "We believe we are having a meaningful, broader impact on the overall economy and the pursuit of viable renewable energy sources through patented technologies and processes and startup companies such as Spero Energy."

Since its 2009 launch through a $20 million grant from the DOE, C3Bio and its team of researchers led by McCann have aimed at using thermal and chemical catalysts to create biofuels that utilize more of a plant's carbon.

The C3Bio team hopes to engineer catalysts or catalytic sites into plants and use heat or chemical catalysts to convert the biomass into fuel directly, without the need for enzymes, yeasts or other microbes. In addition, five patent applications have been filed in connection with the research generated through C3Bio.

The five-year project also has had additional impacts. C3Bio has created more than 20 jobs for students, postdoctoral researchers and professional staff in Indiana and another eight jobs at partner institutions. McCann also serves as director of the Purdue Energy Center.

Joining Purdue as partners of C3Bio are the National Renewable Energy Laboratory, University of Tennessee, Northeastern University and Argonne National Laboratory.

Abu-Omar, who came to Purdue in 2003 from the University of California at Los Angeles, has published more than 100 original research papers and mentored 25 doctoral students and 10 postdoctoral fellows. He and his research group are developing catalysts that transform renewable resources such as biomass to hydrocarbon fuels and high-value chemicals.

A fellow of the American Association for the Advancement of Science, Abu-Omar won the JPP Young Investigator Award from the Society of Porphyrins and Phtalocyanines and was a senior Fulbright Fellow. He also was a University Faculty Scholar and won the College of Science Interdisciplinary Award in 2010.

Great Smoky Mountains National Park Converts Vehicles To Alternative Fuels; Set To Install EV Recharging Stations

Image Credit : ETCleanFuels

The Great Smoky Mountains National Park is loved by millions of Americans, including the over 9 million annual visitors. Unfortunately, the vehicles that bring visitors to the park and aid staff also produce tailpipe emissions that pollute the air and threaten iconic views and species. To reduce the environmental impact of vehicles in the park, the East Tennessee Clean Fuels Coalition (ETCleanFuels) is pleased to announce a new project with the National Park Service (NPS) and the Land of Sky Clean Vehicles Coalition to deploy alternative fuel vehicles, reduce park transportation costs and improve park air quality with joint Department of Energy and Department of Interior grant funding.

“I think the American public understands that managing a National Park is a tremendous responsibility and takes a great deal of dedication and effort by its staff, volunteers and supporters,” said +Jonathan Overly, Executive Director of ETCleanFuels. “Vehicles should enhance the work of park staff, not strain budgets with high fuel costs or harm the park’s natural resources.”

The project partners will collaborate to replace three gasoline pickup trucks with all-electric work trucks, convert five gasoline mowers to operate on propane, and install four public electric vehicle (EV) chargers at the Sugarlands and Oconaluftee Visitor Centers. DC fast-charging stations capable of repowering an all-electric vehicle in about twenty minutes will be installed at each of the two Visitor Centers—a first for the National Park Service. Traditional Level 2, 220-volt chargers will be installed as well.

A collection of outreach materials is also being released to help the Great Smoky Mountains National Park and others engage visitors and staff on the benefits of ecofriendly driving practices. The Green Rides Toolkit, as it is called, addresses vehicle idling, green driving habits, alternative fuels use, efficient vehicles options, and more sustainable forms of transportation such as mass transit, biking and walking.

ETCleanFuels looks forward to assisting the park in its on-going work to reduce emissions. Since 2005, the Smokies have been using biodiesel in their vehicles and heating fuel and are one of the largest users of biodiesel in East Tennessee. By converting to alternative fuels, organizations not only improve the quality of their communities’ air, but also achieve fuel cost savings and help secure America’s energy independence. Local, county and state parks are encouraged to look to the National Park Service’s alternative fuels work as a tremendous case study example and are welcome to seek grant funding and technical assistance from ETCleanFuels as well.