Recently in Biofuel Category
The Environmental Protection Agency has denied Texas Governor Rick Perry's request to cut the Renewable Fuels Standard in half. Put in place by the Energy Policy Act of 2005, the RFS requires that 9 billion gallons of renewable fuels be blended into the fuel supply by 2008 and 11.1 billion gallons by 2009. EPA Administrator
Stephen L. Johnson said, "After reviewing the facts, it was clear this
request did not meet the criteria in the law ... The RFS remains an important tool in our ongoing
efforts to reduce America's greenhouse gas emissions and lessen our
dependence on foreign oil, in aggressive yet practical ways." The full press release can be accessed here. More information on the RFS can be found here.
The National Renewable Energy Lab has released a technical report entitled, E85 Retail Business Case: When and Why to Sell E85. According to NREL,
The document identifies seven variables that can make E85 profitable and weighs their influence using a model NREL created based on a discounted cash flow analysis. These variables are:
- E85 equipment configuration
- E85 throughput
- Equipment costs
- Return on investment
- Maintenance and operation costs
- Base taxable income
- Annual throughput of mid-grade and premium
Knowing the relative influence of these variables helps retailers assess whether they are good candidates for an E85 project. The model also helps them estimate the minimum margin that they would need to make on each gallon of E85 in order to make their investment profitable.
Verenium Biofuels Corporation has received one of the last two Department of Energy awards for small-scale biorefineries. The company will receive up to $40 million over five years to continue their work in building and operating a demonstration-size biorefinery in Jennings, Louisiana. Verenium technology is focused on converting non-food biomass, such as agricultural byproducts and waste wood products, into ethanol. Read the full press release here.
The US Department of Energy's Alternative Fuels and Advanced Vehicles Data Center has gone live with their new online alternative fuel station locator. Users can indicate the type of alternative fuel they are looking for (including B20 and E 85), enter a search area and view available service stations. The program can also identify fuel stations along a travel route that you provide. Other available data includes planned stations and payment type available at fueling stations. The station locator can be accessed here.
A briefing from the Center for Agricultural and Rural Development (CARD) at Iowa State University seeks policy changes that "place a greater emphasis on food prices and greenhouse gas reductions," which would in turn encourage a "transition away from current feedstocks toward those that do not reduce our ability to produce food." The report offers two biomass options that can facilitate breaking the food and fuel link: (1) Capturing biomass that is currently treated as waste or is a co-product of existing production processes and (2) Growing biomass on land that is not suitable for food production or to grow the biomass without using land at all (algae, for example). The report also offers three policy options that would further encourage the use of non-food biomass:
- Placing a hard cap on ethanol made from corn and on biodiesel made from refined vegetable oil.
- Target tax credits and fuel standards depending on the impact each biofuel feedstock has on food prices.
- Fund further research programs for biofuel feedstocks.
Reuters is reporting that "about 12 small to midsize biodiesel and ethanol plants have declared bankruptcy in recent months." The bankruptcies come as prices for corn and soy (primary feedstocks for corn ethanol and biodiesel plants) are hitting record highs. In addition, high costs of contruction, tight credit markets, and high costs for transportation are also factors. While smaller companies are hit the hardest, larger firms with "their diversification, efficiency plants, and access to cheap train transportation for distributing ethanol" are better protected from the recent surge in production costs.
ASTM, the American Society for Testing and Materials, has approved specifications for B20 biodiesel. Approval of these specifications allow for auto and engine manufacturers to be confident that they are receiving a biodiesel product that meets quality standards. Steve Howell, Chairman of the ASTM Biodiesel Task Force, said,
"The new ASTM specifications for B6-B20 blends will aid engine manufacturers in their engine design and testing processes to optimize the performance of vehicles running on biodiesel. The new specifications will also help ensure that only the highest quality biodiesel blends are made available to consumers at the retail pump."According to the National Biodiesel Board, the approved specifications include:
- Changes to the existing B100 biodiesel blend stock specification (ASTM D6751)
- Finished specifications to include up to 5% biodiesel (B5) in the conventional petrodiesel specification (ASTM D975)
- A new specification for blends of between 6 percent biodiesel (B6) to 20 percent biodiesel (B20) for on and off road diesel.
Texas A&M's Agricultural and Food Policy Center analyzed the effect of ethanol on Texas food and feed in April 2008. The report found that "the underlying force driving changes in the agricultural industry ... is overall higher energy costs, evidenced by $100 per barrel oil." Oil prices have gone from $35 per barrel in 2005 to over $100 per barrel in 2008. Other findings include:
- Rising energy costs has led to higher costs of production for corn producers, resulting in fewer corn acres planted.
- Food items like bread, eggs, and milk have higher prices unrelated to ethanol or corn prices, but are a result of higher world demands.
- The livestock industry has borne the cost of higher corn prices for feed and have yet to be able to pass those costs on due to the structure of the industry.
Secretary of Energy Samuel Bodman and Secretary of Agriculture Edward Schafer teamed up to respond to Senator John Bingaman's questions regarding ethanol's impact on food prices and gasoline prices. The letter can be found here and a DOE fact sheet showing how biofuels has helped keep gas prices lower can be found here.
Alabama's Gulf Coast Energy is ready to begin producing ethanol from waste wood as soon as next month. The demonstration plant will use gasification technology on wood waste and turn it into ethanol. The demonstration plant plans to eventually scale up to a commercial capacity of 45 million gallons per year. More information can be found here.
