According to David Lessner, an assistant professor of biological sciences who is leading the research, the project focused on methanogens, which are methane-producing anaerobic microorganisms. “These are microorganism that grow only in anaerobic—or oxygen free—environments, but they are found in very diverse environments,” he said. “They grow by producing methane gas as an end product.”

One of the primary limitations of methanogens in methane production is that they are only able to digest a very limited range of substrates, Lessner said. To produce methane in nature, these mircoorganims must work in a consortium with other microorganisms that break down complex carbon sources into compounds they can consume. The basic premise of the study, Lessner continues, was to provide a methanogen microorganism with the genetic ability to break down more complex compounds and produce methane.

The research conducted by Lessner and his colleagues focused on a strain of methanogen known as Methanosarcina acetivorans. According to Lessner, this particular strain was used because it can naturally consume more substrates or chemicals than most other methanogens. “But, it’s still limited,” he continued. “We we thought it would be a good platform to begin adding to the catabolic capabilities of the organisms, so we used that as our starting microorganism.”

The project involved isolating a gene from a strain of bacteria that is able to consume a wide range of substrates, but cannot produce methane. The gene was transferred from the bacteria to the methanogen. “We were able to show that the methanogen could recognize that gene and make the enzyme, and then that allowed the methanogen to consume more complex esters and convert them into methane gas, where the original parent strain is unable to do so,” Lessner said.

While Lessner noted it is not feasible to genetically modify methanogens to the extent that they could be used to convert complex mixes of biomass feedstocks into renewable methane, he notes that it might make sense to specifically modify the microorganisms to convert specific biorefining waste streams into methane, which could then be used as renewable natural gas. One specific example of this type of application is the conversion of glycerin coproduced at biodiesel plants.

The next step in the research will involve further modifying the methanogen to digest more slightly more complex substrates. In addition to investigating the potential for renewable natural gas production, Lessner said the research his team is conducting might provide technology developers with new insight into the use of methanogens in industrial processes. While the use of bacteria in industrial processes has been widely studied and is well understood, there has been much less investigation regarding the use of methanogens in industrial processes.

SOURCE: BIODIESEL MAGAZINE

The catalytic material SCRO-80, which has been titled “Smart Catalyst,” facilitates the transesterification process in minutes rather than hours, said Ben Engelen, Ceimici Novel’s market developer. While Engelen was unable to disclose any information regarding the chemical structure or composition of SCRO-80, he did note that that the catalytic material “will not suffer from obsolescence.”

Unlike traditional biodiesel diesel catalysts that are consumed during the biodiesel production process, SCRO-80 can be recovered and reused.

“The transesterification is realized in a single stage and allows a full continuous operation,” said Engelen. “Smart Catalyst performs the transesterification reaction as a true catalyst should—without being consumed. It is heterogeneous, which allows for easy recycling. It has high activity, which allows for the reaction to be taken to completion in a single reactor and the glycerol produced is a 98 percent grade. Good glycerol and a recycled catalyst provide about 80 percent of the benefits in switching to Smart Catalyst.”

According to Engelen, SCRO-80 can be employed in both new and existing biodiesel plants. Most existing plants are able to use the equipment that is already in place, he said.

“Without any problem, the smart catalyst can be added to the reactor as a direct replacement for the caustic catalyst,” Engelen continued. “This requires no investment…The next stage would be to install intensive inline mixing equipment.

This is projected to cost approximately $70,000 for a 10 MMgy facility. “The loop is complete when you install further separation equipment to recycle the catalyst,” he said, noting that this cost is relatively minor.

“Existing plants can increase their production capacity a number of times without major investment,” Engelen continued. “We just have to solve possible bottlenecks in the rest of the plant, such as storage capacities.”
New plants designed specifically to utilize SCRO-80 can be built with a much lower capital investment than traditional biodiesel facilities, Engelen said.

Ceimici Novel has tested SCRO-80 on the lab and demonstration scales. “We built a semi-continuous unit pilot plant that produces 1,800 kilograms of biodiesel per hour (540 gallons per hour), Engelen said. “Now we work with a 1000 kilogram (300 gallon) batch demonstration unit in the Netherlands, where in a simple CSTR (Continuous Stir Tank Reactor) we can achieve ASTM and EN 14214 specifications in the order of 6 minutes with triglyceride levels below 0.01 percent,” he continued, noting that Ceimici Novel also has plans to perform a 10 ton (3,000 gallon) production demonstration for a group of South American-based biodiesel producers in mid-September.

According to Engelen, Ceimici Novel began to market SCRO-80 in July and recently appointed a U.S.-based distributor.

“At the moment we are working out the parameters for the savings and conditions of the technology license and royalty agreements,” he said.

[When those] agreements are in place, we will be able to do any size scale test at customer’s plants.”

Ceimici Novel currently expects its catalyst to be employed on a commercial scale by late 2010 or early 2011

By Erin Voegele

SOURCE: BIODIESEL MAGAZINE

The investment will span over a seven-year period. Speaking about the investment, the minister of natural resources Christian Paradis said: ‘By investing in this project we are helping to create and sustain local jobs and economic opportunities while creating a healthier environment for all Canadians.’

 The Biocardel Quebec plant will use animal fat and waste cooking oil to manufacture around 40 million litres a year of biodiesel, which will then be sold to Quebec-based diesel producers, in addition to producers located in the US. ‘We are very pleased with the government of Canada’s support. It will help to secure the future of our biodiesel production,’ commented Biocardel Quebec’s president Rene Delarus.

‘Biocardel’s production of biodiesel and our R&D work in algal biofuels and recovery of by-products will help to reduce greenhouse has emissions while promoting a sustainable environment.’ This CA$18.79 million investment is part of a $1.5 billion investment by the Canadian government that will take place over a total of nine years.

SOURCE: BIOFUELS NEWS

The 100 Mgy Imperium Renewables  facility in Grays Harbor, Washington.

Back in 2008 the death watch began on Imperium Renewables.

Though its 100 Mgy multi-feedstock plant in Grays Harbor was, at the time, the largest and most modern biodiesel facility in the US, the company lost its CEO, withdrew a planned IPO, and was forced to cancel a potentially lucrative Hawaiian development project that would have supplied biodiesel to Hawaiian Electric (HECO).

By August 2008, Royal Caribbean had pulled out of an 18 million gallon annual contract and sold off its investment in the plant, and even the city of Seattle canceled a planned biodiesel contract, citing the rising cost of biodiesel fuel.

Company founder John Plaza, late of Seattle Biofuels, stepped back in as CEO as biodiesel plants began to shutter all across the country in the face of static fuel prices, rising feedstock prices (especially for soy), and ultimately the loss (or near-loss) of a precious $1.00 per gallons biodiesel tax credit that had helped subsidize the cost of biodiesel when it began to exceed the cost of diesel.

2008: How Low Could it Go?

As if the conditions for biodiesel weren’t bad enough across the country, the mood in Seattle was perhaps even more sour. Even downstream alternative fuels marketer Propel Biofuels re-established its corporate HQ in California as individual protesters began to surface outside of biodiesel stations, and local eco-publishers like Grist began to run increasingly negative articles about the bio side of the alternative energy movement.

The producers of the “Fields of Fuel” documentary, which won an Audience Award at the Sundance Film Festival, and a standing ovation from the alt-film crowd for its vision of a crop-based solution to global energy woes, hastily re-named itself “FUEL” and took on a more algae-centric view.

The resurrection of a biodiesel giant

“I’m not dead yet,” proclaims a decidedly uncooperative corpse in Monty Python and the Holy Grail, and as with Mark Twain, reports of Imperium’s impending demise were somewhat exaggerated.

Today, what was expected to become one of the first major casualties of the biodiesel crisis of 2008-10 has emerged as one of its leading survivors, and John Plaza, then as now, remains one of the biofuels industries most outspoken and astute observers.

“Relative to the industry this year, we have avoided layoffs, and we’re enjoying our niche market – serving the Canadian marketplace,” Plaza says. “There’s additional demand because of the Low Carbon Fuel Standard in BC. Our customers have come to recognize that we produce the lowest cost, highest carbon reduction fuel.”

As far as prospects in the US, Plaza is sanguine. “There’s been a lengthy delay in any impact from the launch of RFS2. We’re seen more RIN trading than demand for fuel from obligated parties, so far. They are buying RINs from a huge backlog available.”

Nevertheless, Imperium is looking up these days, rather than being hunkered down. “We’re pretty bullish for demand for Imperium’s, We’re not producing on a continuous basis, but we have been producing on monthly campaign basis within 24 hours of receiving oil. At many points we are at or near 100 percent capacity, and for the first quarter we were overall at near half our capacity.”

The tax credit – never say die

“The tax credit still has some legs,” Plaza contends. There’s a discourse this week around the extenders package, and we’ll have one more chance after Labor Day. I’m 55 percent optimistic, 45 pessimistic.”

“But we have to see changes. What the industry needs is a two-fold support, a mnadted floor, and incentives with tax policy to get the outcomes we’re trying for. That’s where a Low Carbon Fuel Standard comes in, with a focus on a reduction in carbon emissions, that would reward the best behavior.”

The ethanol tax situation

“The frustrating part of the debate,” Plaza contends, “is that we’ve been subsidizing corn since I’ve been alive. Ethanol came about because of excess corn. The goals were right – rural development, price stabilization, but the policy drivers were wrong, and gave us this monoculture producing excess cheap food which was primarily used for cheap feed.”

Corn support going away? “Absolutely not, I don;t see them dismantling the whole system. And frankly, if ethanol policy [inadvertently] creates a few rich farmers in the Midwest, so what? I’d much rather have rich farmer than a rich Chavez.”

Sustainability

“The Low Carbon Fuel Standard is the biggest issue,”Plaza comments, “and we need sustainabiliuty criteria, and we need to understand what we are truly measuring against. Wd have to have a frame of reference that looks at the marginal production of fossil fuels, which we obtain from Canadian tar sands, and we need a fair standard based on fair data. The Roundtable on Sustainable Biofuels is developing some baseline assumptions, and will measure the inputs and have it audited. Their approach is to have an average for all of biodiesel, and then if you want to get an individual score for a facility, you can pursue that.”

“The California Air Resources Board (CARB) got it all wrong. It’s a complete and utter disaster, with utopian requirements to meet standards that will just kill off first generation fuels in California and you never get to the second generation.”

[Editor's note. No new commercial-scale or demonstration-scale advanced biofuels project has been announced in California since the completion of the California Low Carbon Fuel Standard.]

“RSB needs to be taken seriously, by the Europeans, the obligated parties, and needs needs to be valid organization. It does feel at times like middle school kids finding out how to get along, but when the European Biodiesel Board and eBIO pulled out of RSB, it was a petty and foolish move by some petty and foolish guys.”

Biodiesel consolidation

Biodiesel has been undergoing some consolidation in recent months, primarily with REG on the move, acquiring new capacity. Imperium has stayed away.

“There are very few facilities we like – with the large scale, high quality, and logistics similar to what we have. For us, consolidation is not best strategy for our shareholders. Our focus has always been on innovation and market opportunity, based on most efficient and highest value. We try to be differentiated enough to be biodiesel 1.5, with, for example, our emphasis on a multi-feedstock approach.”

Imperium’s own expansion plans

In the Digest, we have been extensively covering in recent months the opportunities for expansion based on existing first-generation capacity in the ethanol side of the market, with a special reports on biobutanol as well as covering cellulosic biofuels bolt-on capacity such as POET is building in Emmetsburg, IA with Project LIBERTY.

What’s opportunities are there for similar expansion, using the existing capacity of biodiesel facilities, their feedstocks acquisition logistics, rail lines, storage facilities, and industry knowledge?

“We like drop-in replacement fuels,” says Plaza, “that use our existing feedstock and agricultural waste. We see real opportunities with hydrocarbon replacement in the distillate markets, and we are focused on what we see as tremenodus opportunities with aviation and military markets. It’s so much about feedstock, and we feel that we have the existing ag wastes, and forest resources, and we have the knowledge in how to efficiently invest in technology.

“We’ve been doing more working than talking, but what we’re working on is a next generation, integrated biorefinery that makes 12 products, inclusive of jet fuel and high value chemicals. [At Grays Harbor], we’ve got the state of art biofuel facility, plenty of land around it. We’re focus on building right at home for now. We like that market.”

SOURCE: BIOFUELS DIGEST

Kyung Wook Hur, Vice Minister, Ministry of Strategy and Finance of Korea; and Luis Alberto Moreno, President, IDB, signed a memorandum of understanding to promote programs and projects that foster cooperation between them and, in particular, activities related to green growth, sustainable energy and climate change.

Photo: Árlette Pedraglio

The Export-Import Bank of Korea and the Inter-American Development Bank (IDB) will sign a an agreement to co-finance public and private sector projects worth as much as $2 billion in the next three years in Latin America and the Caribbean.

Kexim, as the Korean official export credit agency is known, and the IDB will work together to share information and identify and finance projects in infrastructure, information technology, trade finance and other areas. The accord will be signed in Medellín, Colombia, during the 50th Annual Meeting of the IDB’s Board of Governors.

Also during the annual meeting, the IDB and the Korean government, one of the Bank’s 48 member-countries, will also sign a cooperation agreement on Green Growth to develop and promote the use of renewable energy, efficient energy technologies and practices and carbon finance activities in Latin America and the Caribbean.

“We are honored by the presence in Medellín of Vice Minister Kyung Wook Hur and Kexim’s President Dong-soo Kim, whom on behalf of the Korean Government are making a special contribution to more sustainable economic growth in Latin America and the Caribbean by providing cutting-edge green technologies,”said IDB President Luis Alberto Moreno. “Kexim’s remarkable support with this large credit facility will allow the IDB to enhance its infrastructure financing during these difficult economic times”.

The accord also involves the creation of Green Growth Operations Steering Committee, formed by IDB officials, the Ministry of Strategy and Finance of Korea and members of Kexim. The committee will help in the formulation of policies that promote economic growth with environmental sustainability inn the region.

The IDB, the world’s largest regional development institution, and the Korean government are also strengthening its relations and partnering to provide advisory services in the areas of environmental protection, energy efficiency and sustainable finance.

Korea joined the IDB in 2005 as the Bank´s 47th member. The Asian nation has financed several IDB initiatives since then, including poverty alleviation programs and the development of small- and medium-sized enterprises in Latin America and the Caribbean.

The IDB, through its Office of Outreach and Partnerships (ORP) has facilitated the accomplishment of these partnerships that will provide additional financial and non-financial resources to its member countries and is now effectively becoming the platform for doing business in the region.

Source: BID

A detailed study of the direct costs, of commercialization, harvests and tributary clearifies the numbers of the agriculture.

Of each $10 that a soya producer wins in Santa Fe, the State takes away $7.9. And of each $10 that a wheat producer wins in Santa Fe, the government takes away $6.9. Keeping up to 80% of the earnings, the government is already today the wholesale partner of the producer.

From where do the numbers arise? Punto Biz carried out a detailed study of the structure of the cost of the producers of the nucleus area to see the real incidence of the tax load.

Nobody likes to show their real numbers a lot, so Punto biz carried out several consultations to producers of the area in order to be able to compare them and to have a real estimate. Next, the results.Â

The case of the soyaÂ

For this report, a yield of 32 quintals per hectare and a price of $840.89 per clean ton for the producer was considered.Â

That value results of calculating a price of u$s 460 per ton FOB, to wich according to the new “chart”-it is necessary to subtract 40.48% in retentions, for what results u$s 273 per ton. To that price it must be rested u$s 6 of fobbing expenses and it results u$s 267 per ton ($840.89 to an exchange rate of 3.14)Â

Regarding direct costs, in this case the producer spends per hectare $144 in works, $127 in seeds, $623 in agrochemics and fertilizers; adding as result $893 per hectare.¼br />  Regarding crop costs and commercialization, in this case the producer spends $202 in crop (7.5% of full price per yield), $250 in freight (short and long), $35 in conditioning and 81 in commission (3%); resulting an expense of $567 per hectare. It is also necessary to add expenses of structure that is of $160.Â

When speaking of taxes, provincial taxes add up to $50 and the tax to the check adds $32; giving an operative result of $987 per hectare. To that value it is necessary to subtract 35% of Earnings (Ganancias) ($345), resulting then $641 and then $60 of Personal Goods (Bienes Personales).Â

In definitive, the producer had left $582 clean per hectare. Now, how much was left for the State? If all the taxes are added, the sum gives $2.318 per hectare. Simpler: 79% of the income.Â

Is it bette for the corn?Â

For this report, we took a yield of 90 quintals per hectare at $502 the ton. That value arises of u$s 220 per ton minus 24.5% of retentions, that gives u$s 166 per ton FAS and to wich it is necessary to subtract u$s 6 of fobbing, resulting finally u$s 160 per ton ($502 to the exchange rate of 3.14)Â

Regarding direct costs, per hectare the works cost $144, the seeds, $349; and agrochemics and fertilizers, $762; adding $1.255.

Regarding commercialization costs and harvests, they have to pay per hectare $317 for crop (7% of the full price per yield), $702 for freight (short and long), $126 for conditioning and $136 for commission (3%), adding this way $1.280. it is necessary to also add $160 in structure expenses.

Per hectare, the provincial taxes take $50, the tribute to the check results in $54 and Personal Goods costs $60.Â

In definitive, the operative result is of $1.662 per hectare. To that value it is necessary to subtract 35% of Earnings ($663) and after doing so we have as result $999. That is the clean amount that the producer wins per hectare.Â

And how much does the State take away? Adding the total of taxes paid, the State keeps $2.298 per hectare. In other words, 69% of the income of the production.

Questions and doubtsÂ

Keeping up to 80% of the earnings, the government became the wholesale partner of the producer and the questions that appear are: When the prices lower (something that sooner or later happens in all the markets) who will be able to last? What business will be able to put up with similar tax pressure? Will that be the moment when the wholesale partner of the rent takes advantage to also keep the capital? Or in other words: will that be the moment when the wholesale partner’s friends keep the capital, like is happening today with oil companies and airlines? Another doubt: a difference of $10 among what is kept by the State of the soya and of wheat is the great official incentive to combat the so called “soya boom”?Â

By Mariano GalindezÂ

Courtesy of Punto Biz for Nextfuel-Biodiesel.com.ar Š