So what is the value proposition of doing this? Profits, as Mark Fashian, president of Ethanol Analytical Solutions (EAS) and Biodiesel Analytical Solutions (BAS) explained to me during a Skype interview following the Fuel Ethanol Workshop recently held in Indianapolis, Indiana. For example, Fashian said a 100 million gallon per year ethanol plant will sell 100 million RINS. By adding a 3 million gallon biodiesel plant you’ll make your plant more valuable because each of these gallons is worth 1.5 RINS, or an additional 4.5 million in total.

With demand for biodiesel increasing and the need for more gallons (the biodiesel industry is still ramping up after the one year loss of the $1 per gallon tax credit in 2009), Fashian said this is the perfect storm for the ethanol industry.

You can listen to my full interview with Mark Fashian here: Diversifying the Ethanol Industry with Biodiesel0:00 / 0:00DownloadRight-click and save as to download.

He also noted that one drawback to using corn oil for biodiesel is that it has a high acidic content, around 27.5 percent, and because of this it is hard to convert. Most plants use a two-step process to achieve this.

“It’s a lot of redo a batch, do a batch again because we didn’t get it just right, and that’s not what the ethanol industry is looking for,” said Fashian. “They’re looking for the silver bullet where you can take that corn oil right from the extractor and put it right in to another process to make biodiesel without having to mess with a second or third run to get the biodiesel to make ASTM grade. And that’s exactly what the McGyan process does. It’s patented for the corn oil process and with their everlasting catalyst you just pump the sample in with either ethanol or methanol and out the other end comes beautiful biodiesel.”

If a plant doesn’t have extraction technology, when all expenses are factored in, the return on investment (ROI) is less than one year, and this includes the lab. I should note that Fashian is also a director of Mcgyan and both EAS/BAS represent the technology. So their team would not only work with the ethanol plant on the biodiesel installation, but also help them update the lab for all the extra tests required for biodiesel and the proper equipment to achieve specs. For those plants who already have extraction technology, the ROI is less than 2 years.

It takes between 12-18 months to get the Mcgyan technology up and running and its already designed to be a perfect fit for an ethanol plant. Oh, and if you decide to sell your corn oil on the market rather than produce biodiesel, you can still produce biodiesel with other feedstocks.DOMESTIC FUEL.

“Thailand is committed to the low-carbon pathway,” said Twarath Sutabutr, deputy director of the Department of Alternative Energy Development and Efficiency within Thailand’s Ministry of Energy. Sutabutr is leading the list of speakers for this week’s event.

The Clean Power Asia conference focuses on several elements of Thailand’s energy future, including renewable energy sources and cleaner fossil fuel-based power. The event aims to give Thailand the opportunity to showcase its green track record while highlighting the investment opportunities offered by its renewable energy industry. According to information released by the event’s organizers, approximately 300 delegates present at the conference will hear from energy experts representing more than 14 countries, including Thailand, Singapore, Korea, China, the Philippines, India, Australia, Indonesia, Cambodia, Vietnam, Laos, Malaysia, Pakistan and Iran.

Regarding the potential for biodiesel investment, Clean Power Asia’s team notes that the government of Thailand has established a goal to produce and use 4.25 million liters (1.12 million gallons) of biodiesel per day. This equates to a usage goal of approximately B7 in 2011. 

One of the goals of Thailand’s Energy Policy and Development Plan is to promote the use of biodiesel and other alternative transportation fuels. To help achieve that goal, the country has aimed to educate members of the public about alternative transportation fuels in order to build consumer confidence. The government has also been promoting the use of palm oil production within Thailand, with the goal of having 400,000 hectares (nearly 990,000 acres) of the feedstock in cultivation by 2012.

While the Clean Power Asia event focuses on investment opportunities, a training program in India will focus on the development of jatropha and other non-food  feedstocks for biodiesel production, including algae, castor, pongamia, moringa, simarouba, and jojoba. The 5-day event will address both feedstock development issues and oil extraction and process technology developments.

Nearly 10 sessions at the training event will focus exclusively on jatropha. According to CJP, these sessions will address genetics, agronomics and horticulture practices. “[The speakers] shall also discuss the need for universally-accepted industry standards for the development of this crop as well as the efforts to develop such activities in developing jatropha varieties with improved oil yield per hectare to achieve [a] three-fold goal of addressing energy, economics and execution with clear focus on critical issues facing [jatropha’s] role as a viable feedstock,” said the CJP in a statement.BIODIESEL MAGAZINE.

National Biodiesel BoardThe North American International Auto Show (NAIAS) in Detroit has long been known as the event of the year for the latest vehicle technologies and innovations, setting the pace and direction for the world’s economic future. What more fitting venue, then, to also highlight the fuel that will be used increasingly now and in the future to power these vehicles in a cleaner, greener, more sustainable manner: biodiesel—America’s first advanced biofuel.

The National Biodiesel Board, along with key industry partners from Ford Motor Co. and General Motors, are presenting a Biodiesel Symposium entitled “Biodiesel: Powerful Fuel, Promising Future” at the Detroit auto show on Wed., Jan. 12 from 2:00 – 3:30 p.m. in Cobo Center’s Michigan Hall as part of the NAIAS “Smarter Living In Michigan” Exposition.

“We are extremely pleased to have this opportunity to feature biodiesel as America’s first advanced biofuel to the global automotive industry,” said NBB CEO Joe Jobe “The U.S. Renewable Fuel Standard (RFS2) established realistic goals of supplementing the nation’s fuel supply with advanced biofuels which reduce lifecycle carbon by more than 50 percent. Biodiesel is the first advanced biofuel to reach commercial scale production in North America, and it reduces direct lifecycle carbon by more than 80 percent. Biodiesel is thus very well-positioned to help the nation meet its immediate and long-term advanced biofuel goals.”

Biodiesel is a low cost, domestically produced, renewable advanced biofuel that provides the RFS2 required reductions of greenhouse gases while also reducing oil imports, enhancing energy security, and creating U.S. jobs. The U.S. EPA has issued RFS2 volume requirements for the use of at least 800 million gallons of biomass-based diesel fuel in 2011, for which biodiesel qualifies as an advanced biofuel. That requirement then ramps up to more than 1 billion gallons for 2012 and could reach as high as a 5 billion gallon market for biodiesel by 2022, as it also qualifies under the non-cellulosic advanced biofuel category.

As part of the biodiesel symposium, GM and Ford are presenting information on their new 2011 diesel vehicles, which are all fully approved for use with B20 biodiesel blends. General Motors extends B20 approval to its full diesel line-up, which includes the Chevy Silverado and GMC Sierra pick-ups, as well as the Chevy Express and GMC Savana cargo vans. Ford supports the use of B20 on its full line of 2011 Ford Super Duty diesel trucks.

Jim Michon, truck fleet marketing manager for Ford Motor Co., said, “Many of our fleet customers are very conscious of the environment, and had been asking us for a truck approved for use with B20 biodiesel. In the process of developing our all-new Ford-designed, Ford-built 2011 Super Duty truck, we thoroughly tested B20 in our new engine under the harshest of conditions. B20 proved itself to provide the same fuel economy, power and performance our customers expect of our high performance diesels—there are no trade-offs for using B20”.

According to the Diesel Technology Forum, today’s clean diesel technology provides 20 to 40 percent better fuel economy than its gasoline counterpart, and emits 10 to 20 percent less carbon dioxide. Coleman Jones, biofuels implementation manager for GM, said, “With B20, our customers can enjoy all the benefits of today’s quiet, clean diesel engines and help to meet the country’s goals to reduce carbon emissions at the same time. It’s a win-win situation.” Both Ford and GM plan to continue supporting B20 use in their future diesel models as well, along with many other vehicle and equipment manufacturers.

Over the last 20 years the biodiesel industry has made the necessary investment in research, testing, and standards development to produce a high quality fuel meeting the stringent specifications of the American Society for Testing and Materials, now known as ASTM International.

“The last 20 years of research and development—and the intense commitment to development of ASTM standards, high fuel quality, and the biodiesel industry’s BQ-9000 fuel quality program—are what led us to this designation as America’s first advanced biofuel,” said Steve Howell, technical director for the NBB. “We look forward to powering the clean diesel vehicles of today, and tomorrow, with clean, green, sustainable biodiesel, and we are already engaging in the next frontier of research that will continue to optimize the fuel for use for decades to come.”

Based in Jefferson City, Mo., the National Biodiesel Board is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S. Its membership is comprised of biodiesel producers, state, national, and international feedstock and feedstock processor organizations, fuel marketers and distributors, and technology providers.

SOURCE: BIODIESEL MAGAZINE

UK explorers claim fastest Antarctic land crossing.

LONDON — A British expedition team say they have broken previous records to achieve the fastest ever land crossing of Antarctica.

The Moon Regan Transantarctic Expedition left Union Glacier on November 25 and arrived on the Ross Ice Shelf on Thursday, after covering 1,945.9 kms in 303 hours, it announced on its website.

The ten-man crew of researchers, scientists and explorers will now retrace their tracks to the South Pole, and back to the west coast at Union Glacier.

They hope to finish their return trip within around nine days to become the only vehicle-based expedition ever to complete the journey there and back.

The team, in partnership with Imperial College London, are travelling in convoy led by a biofuelled ice vehicle which glides across the ice on skis, using radar to detect dangerous crevasses.

Two “mobile laboratories” in six-wheeled drive vehicles are following behind carrying most of the crew and equipment.

The expedition is the first to use biofuel extensively in the Antarctic and aimed to test its efficiency and reliability in extreme temperatures.

Researchers hope the results will encourage other Antarctic explorers to reduce their environmental impact. Most travel around the area is currently done in small planes.

Scientists are also trialling health monitoring equipment developed by Imperial College including Sensium enabled Life Platforms, which track vital signs, such as ECG, heart rate, movement and muscle activity.

 SOURCE: AFP

SPANISH VERSION

http://biodiesel.com.ar/4767/biofuels-transantarctic-expedition

“I’m led to believe the extenders of 2009 would be extended for the years 2010 and 2011,” the Iowa Senator said. That would be good news for the struggling biodiesel industry, which lost its $1-a-gallon tax credit at the end of 2009.

Grassley said the current 45-cent-a-gallon tax credit for ethanol, which expires December 31, will be extended through 2011, along with other expiring tax credits.

Grassley said that he doesn’t yet know if the ethanol credit will remain at 45 cents, or if it will be lowered to 36 cents, as it was in a tax bill authored by Senate Finance Committee Chairman Max Baucus (D-MT). The Baucus legislation, which would not have extended favorable tax rates for high income earners, was defeated on Saturday.

“I’ve been an advocate that we shouldn’t change any policy on these extenders,” Grassley said.

Grassley said he believes that a tariff on imported ethanol, which expires this month, will also be extended for one more year.

Grassley said he was pleased that the tax compromise also includes higher estate tax exemptions and lower estate tax rates for two years. The exemption will be $5 million per spouse at a 35% rate.

“I didn’t think we would ever have that possibility after we lost it in April,” he said. Senate Majority leader Harry Reid (D-NV) didn’t allow a vote on a similar proposal offered by Senators Jon Kyl (R-AZ) and Blanche Lincoln (D-AR).

Grassley said he believes all Republican members of the Senate and House will vote for the tax compromise but he doesn’t know how much support the legislation will have from Democrats.

SOURCE: AGRICULTURE

Algae Fuels is a group of companies such as Copec, E-CL, Rentapack, Pontificia Universidad Catolica de Chile and Bioscan and is financially supported by both the Corporations for the Promotion of Production (Corfo) and InnovaChile.

InnovaChile has invested CLP 3.245million, which is equivalent to USD 6.7 million for the project, out of the total requirement of CLP 6.836 million . The pilot plant will grow algae for five years and an assessment would be carried out to determine if the project is both cost-effective and productive. The need was to produce algae with high lipid levels, which could be converted into biodiesel.

According to Arturo Natho, Algae Fuels’ President, the two important aspects of the project were the industrial scale development of microalgal cultures; and also the efficient and cost-effective way of obtaining the biodiesel and its by-products. The company’s perception is that the optimal climatic conditions for the growth of microalgae are available and hence the project was bound to be successful. The project does not require huge tracts of agricultural land as the algae can grow in small areas and that too rapidly. Its production would be a source of uninterrupted and limitless energy.

The first phase comprises of exploring, isolating, purifying and selecting microalgae strains. First the algae would be gathered from the Sea, and then it would be studied in Santiago, to distinguish the most suitable and appropriate strains and then grown in domestic climatic conditions. After which the plants are shifted to the field laboratory in Mejillones where photosynthesis is accelerated due to the CO2 present in the chimney of the power generating plant. The last stage would be subjecting the species to various chemical processes and then centrifuging it to get algal biomass. Finally it is dried in a special kiln and processed chemically. Then the biofuel can be utilized.

SOURCE: AZOCLEANTECH

The National Alliance for Biofuels and Bioproducts (NAABB), which received a $44 million stimulus grant in January (see this BrighterEnergy.org story), produced the biodiesel from algae that meets specifications set by the American Society for Testing and Materials.

Algal oil for the project was provided by New Mexico-based Eldorado Biofuel, one of the 13 industry members of the NAABB consortium. The oil was then converted to biodiesel by another industry partner, Catilin, Inc., of Ames, Iowa, working with Iowa State University’s Center for Catalysis.

Jose Olivares, executive director of the NAABB consortium, said: “This step represents a major success and illustrates the high level of interaction between members which is a good sign that we are starting to reap the benefits of the consortium concept.”

The consortium, which is led by the Donald Danforth Plant Science Center in St. Louis, Missouri, said its researchers had verified that algal-based biofuel could be produced “more efficiently and economically” through Catilin’s process than conventional conversion methods.

Process

The process uses Catilin’s first commercially-available solid catalyst, T300, rather than the highly caustic sodium hydroxide used in conventional algal oil conversion methods.

Catilin noted that its process also offers a useful by-product in the form of glycerin, which can be sold to the food and pharmaceutical industries.

David Sams, vice president, business development, Catilin Inc., said: “Not only are the conversion costs reduced relative to the conventional process but the quality byproducts produced in the process will open additional markets.”

The next step in the project will see the algae-based biodiesel analyzed and tested by NAABB consortium members, including engine emission tests.

Catilin, which is backed by venture capitalists Mohr Davidow Ventures and Leader Ventures, is currently setting up its 300,000 gallon-per-year pilot plant so it can operate the algal oil extraction process, using nanoparticle technology.

 source: brigtherenergy

Vilsack also announced a range of federal assistance for renewable energy development through the Biomass Crop Assistance Program established in the 2008 farm bill.

“Domestic production of renewable energy, including biofuels, is a national imperative, and that’s why USDA is working to assist in developing a bio-fuels industry in every corner of the nation,” Vilsack said in a speech at the National Press Club. “By producing more biofuels in America, we will create jobs, combat global warming, replace our dependence on foreign oil and build a stronger foundation for the 21st-century economy.”

Vilsack’s statements on the tax credit appeared to reflect recent discussions between the ethanol industry and White House Chief of Staff Pete Rouse about changes to the ethanol tax credit and protective tariff, both of which expire at the end of the year.

Vilsack said the lapse in the biodiesel tax credit has caused a loss of 12,000 jobs. He also called for “a short term extension” of the ethanol tax credit, but declined to answer questions about proposals to lower the credit, saying that a “healthy discussion” about changes is taking place. Vilsack did not list an extension of the tariff in his formal remarks, but said in response to a question, “The tariff is likely to continue, but over time it is likely to be phased out.”

Vilsack said the ethanol tax credit still is needed because it is a relatively new industry that requires more investment.

Joel Velasco, the Washington representative of UNICA, the Brazilian Sugarcane Industry Association, said the U.S. corn-based ethanol industry is mature and does not need the tax credit or the tariff.

A growing market

But Matt Hartwig of the Renewable Fuels Association said the industry still is in the development stage and needs the credit. Hartwig said the tariff only is to cover the value of the credit and should be extended at whatever level the credit is extended.

The final rule for the Biomass Crop Assistance Program will be published in the Federal Register Oct. 22, and Vilsack emphasized Oct. 21 that the programs under it were funded in the 2008 farm bill and do not require further congressional action.

The programs include reimbursements to farmers of up to 75 percent of the cost of establishing a bioenergy perennial crop for up to five years for grassy crops and up to 15 years for woody crops and assistance for the collection, harvest, storage and transportation of biomass to biomass conversion facilities for two years. He also said USDA will help pay for construction of 10,000 blender pumps and storage systems to make renewable fuels more easily available to consumers.

Vilsack noted the opening of regional biomass research centers to accelerate the development of a commercial advanced biofuels industry. The centers will be located in Madison, Wis., Lincoln, Neb., and in Alabama, Georgia, Arizona, Washington state and Oregon.

He said USDA’s rural development division will announce assistance to biorefinery plant projects within 60 days and that USDA is trying to figure out whether it can make changes to its federal loan guarantee programs to make them more attractive to investors.

Vilsack said, however, that changes to the loan guarantees will depend on whether “we have the capacity to do that” and also noted that changes would have budget consequences.

Throughout his speech, Vilsack emphasized the importance of renewable fuels to the long-term vitality and job creation potential in rural America. Noting that rural America has experienced population decline and higher poverty levels than urban areas, Vilsack said “President Obama refuses to accept the notion that America’s rural past predicts its future.”

Tags: agribusiness, crops, biofuels, agriculture, farm

SOURCE: AGWEEK

* Subsidizes 10,000 blender pumps and storage tanks

* Also helps pay to produce, store, ship new crops

* Vilsack to Congress: renew industry tax credits (Updates with quote, additional details.)

WASHINGTON, Oct 21 (Reuters) – The U.S. Agriculture Department will provide new subsidies to increase production, storage and distribution of biofuels Agriculture Secretary Tom Vilsack said on Thursday.

Vilsack said the USDA will help pay for five biorefineries and bioenergy plants, and 10,000 blender pumps and biofuel storage tanks in an effort to boost production and use of biodiesel and advanced biofuels.

He also urged Congress to reinstate the biodiesel tax credit and extend a tax credit for ethanol plants, set to expire on Dec 31, to support existing biofuel production.

The lapse of the biodiesel tax credit cut existing production in half, Vilsack said, warning Congress against withholding incentives for the industry.

“At the same time, we need to begin to think about reforms to the ethanol credit program to make it more efficient and effective at addressing the full range of challenges we face in meeting our goals for traditional and next generation biofuels,” he said in a speech.

The USDA also will subsidize the production, storage and shipping of new crops used to make biofuels, Vilsack said. (Reporting by Charles Abbott; Editing by Alden Bentley)

SOURCE:  Reuters

The U.S. Environmental Protection Agency announced it now will allow up to 15% ethanol to be blended with gasoline in motor fuel — but only for use in cars and trucks built since 2007.

Engine valve damaged by carbon buildup from fuel with 20% ethanol. The blend created resin in a fiberglass boat fuel tank and the resulting gunk coated the valve.

The current allowable limit is 10%, and remains so for older vehicles, all motorcycles, heavy-duty vehicles and non-road engines (everything from leaf blowers to motorboats).

That sets up potential confusion at the gas pump. Buyers could have to choose not only among octane ratings but also between E-10 and E-15. And while E-10 now is fairly common, stations are not required to offer it or the new E-15 — and some already say they are going to sit out E-15 for now.

The move does not affect special E-85 fuel — an 85% ethanol/gas blend not considered gasoline at all — already allowed by the EPA. E-85, sold mostly in the Midwest, only can be used in vehicles designed as “flex fuel” machines, to take the higher concentration of more-corrosive ethanol without damage.

EPA says thorough testing has shown E-15 won’t cause problems in the newer vehicles.

Even though the E-15 blend is intended for cars and trucks — indeed, it’s technically illegal to use it in other engines — the small-engine lobby figures it’ll nevertheless wind up in the hundreds of millions of chainsaws, leaf blowers, law mowing equipment, boats, all-terrain vehicles and the like.

It’s unlikely that a station would sell both E-10 and E-15, and even more unlikely that a motorist would fill up the car at at E-15 station (where the higher blend of ethanol will make the fuel a little cheaper), then search out an E-10 or straight-gasoline station to fill the lawn mower gas can, says Kris Kiser, executive vice president of the Outdoor Power Equipment Institute.

E-15 “will get into products it shouldn’t, and there’ll be lawsuits,” he predicts.

“The new ethanol blends, known as E-15, come with serious risks for our engines, wildlife, water, and the air we all breathe,” warns Nathanael Greene at the Natural Resources Defense Council, an environmental activist group.

“A broad coalition of environmentalists, public health advocates, livestock ranchers, and automakers have long opposed EPA’s move,” he says. “Burning ethanol can cause toxic air pollutants to be emitted from vehicle tailpipes, especially at higher blend levels like E-15. The chemistry is fairly straightforward: ethanol burns hotter than gasoline, causing catalytic converters to break down faster.”

The government hinted that the E-15 rule will be broadened. EPA Administrator Lisa Jackson said Wednesday’s action was “the first of a number of actions that are needed from federal, state and industry toward commercialization of E-15 gasoline blends.” She noted that “a decision on the use of E-15 in model year 2001 to 2006 vehicles will be made after EPA receives the results of additional DOE testing, which is expected to be completed in November.”

Kiser, of the Outdoor Equipment group, says it won’t stop there: “We’ll have the same conversation six months from now about E-20. E-15 doesn’t get you anywhere near the flex-fuel mandate set by Congress; E-15 only buys you a little time.”

EPA is under a rural-state-promoted congressional mandate to increase ethanol use. Congress required fuel refiners to blend 36 billion gallons of biofuels, mostly ethanol, into auto fuel by 2022 and the EPA says it can’t be done without allowing at least an E-15 blend.

Most ethanol is made from corn in this country, and farm states have strongly pushed for the government to promote more use of it. 

Beyond possible damage to engines, opponents say E-15 is a bad idea because: 

– Growing more corn and using it for ethanol instead of animal feed will make feed (and thus meat) costly and inflate supermarket prices for the wide range of foods containing corn products.

– It can be seen as bad use of land and a promotion of wasteful, energy-intensive agriculture.

Roland Hwang of the NRDC says: “We strongly support ethanol, as long as it comes from sustainable feedstock and it’s used in a manner that doesn’t undermine air quality. Unfortunately, corn ethanol used as E-15 fails on both counts.

“Corn ethanol is clearly not sustainable and the E-15 (rule) will increase air pollution due to misfueling.”

Ethanol industry group Growth Energy petitioned the EPA earlier this year to allow E-15. The decision has been delayed twice as the EPA and Energy Department did more testing.

The Obama administration’s decision to allow E-15 is a win for the ethanol industry as it faces losing its generous government subsidies. A key tax credit is to expire Dec. 31 and there’s been opposition in Congress to renewing it.

– Fred Meier/Drive On

SOURCE: USA TODAY