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Put Up or Shut Up
The EPA has released its proposed 2011 overall volumes and standards this week, and not surprisingly, they have lowered the cellulosic biofuels goal to between 5-17.2 million gallons, or .004 – 0.15 percent of the total renewable fuels target of 13.95 billion gallons.
Why? Because according to their market analysis, there is not enough cellulosic ethanol in the marketplace to meet the original goals.
However the EPA “remains optimistic that the commercial availability of cellulosic biofuel will continue to grow in the years ahead.”
Really?
I’m a bit curious as to how cellulosic biofuels are going to grow when both private and government funding for the development of cellulosic ethanol is all but nonexistent.
Dried up. Kaput.
Not only that but many companies that have been awarded guaranteed federal loans, have yet to see a penny.
Case in point, Project Liberty, a cellulosic ethanol project funded by POET that will turn corn stover into ethanol, will not move forward unless the government releases the money they have been promised.
Might I add this is the closest large-scale cellulosic project in development in this country?
My suspicion is that the government can’t release the money because they don’t have it and the banks won’t loan it—to anyone.
I’ve said this before and I’ll say it again.
It baffles my mind that our government can promote how desperately our country needs to become energy independent, yet not actually commit to any renewable energy programs long enough for the goals to be met.
Here’s a free piece of advice for the feds.
Our country is never going to achieve energy independence unless YOU have the courage to make the hard decisions and support the growing biofuels industry.
It can’t be done without biofuels.
So either “put up or shut up.”
For more information contact:
POET Project Liberty—605-965-2200.
Does Corn Ethanol Contribute to the Dead Zone?
For several years, researchers, environmental groups and others have linked corn ethanol to the increase of the Gulf of Mexico Dead Zone.
Scientists claim the cause is nitrogen and pesticides, chemicals often used in agriculture, especially corn and soybeans.
They also claim that corn ethanol is causing the problem to get worse since many farmers are now changing their crops to corn to meet the demand for ethanol.
The issue was originally brought to light at the end of 2007 and hasn’t had much recent attention until last week, when some researchers began comparing the environmental devastation of the BP oil spill to the environmental devastation of corn ethanol.
Not surprisingly, ethanol opponents are accusing ethanol subsidies of creating the demand for ethanol, and therefore increasing the demand for corn, thusly increasing run-off and finally, increasing the size of the Dead Zone.
In case you’ve been on vacation this entire year, you should know that the ethanol subsidy, or blender’s credit is set to expire, unless it is renewed.
One thing I love about the people who are against the subsidy is that is doesn’t go to the ethanol industry, it goes to the blender, aka the oil industry.
Call me crazy but since the oil industry has been reaping subsidies for more than 100 years, you’d think they’d want to keep this one as well.
But I digress.
The debate over the Dead Zone culprit is a classic case of he said, she said.
I’m not going to debate the merits of various studies. I am, however, going to say that while no forms of energy are perfect, and no forms of agriculture are perfect, agriculture continues to do more with less each year (less land, less fertilizers and pesticides, less water).
The only achievement the fossil fuel industry has made in recent years is leaving us with less, period.
For more information contact:
• The National Corn Growers Association—636-733-9004.
• National Academy of Sciences—202-334-2000.
Biodiesel – Helping Children Breathe Easier
Each year, more than 24 million children are transported by school buses.
While they may seem harmless to the causal observer, many parents have come to realize that their child’s health is at risk every time they get on the bus.
The cause? The toxic emissions spewing out of the tailpipe.
Nearly 90 percent of all school buses on the road are fueled by diesel.
Yet dozens of studies have shown diesel’s emissions cause asthma, heart disease, cancer, and even premature death, in part because children’s respiratory systems are not fully developed.
However, there is an easy way to eliminate many of the diesel emissions, even more than low sulfur diesel and improved emission technology.
Biodiesel.
Using a B20 blend in school buses reduces particulate matter by 12 percent, carbon dioxide by 16 percent, carbon monoxide by 12 percent and unburned hydrocarbons by 20 percent.
Today there are many schools that have already converted their school bus fleets to biodiesel, but many of these programs are now in jeopardy and new programs are on hold.
The cause is the dying U.S. biodiesel industry fueled by the inability of federal legislators to pass the tax credit and an RFS2 that is under fire by the oil industry.
With all of the problems our country is facing and an element of the solution staring us in the face, it’s a shame that biodiesel is not getting it’s rightful place.
You may not be on board with biodiesel for the energy security benefit.
You may not be on board with biodiesel because of tax credits and incentives.
You may not be on board with biodiesel because you don’t think we’re running out of fossil fuels.
But you should be on board with biodiesel, if for no other reason, than the fact your children will be safer and healthier.
For more information contact:
• Biofuels for Schools—707-849-5234
•National Biodiesel Board—800-841-5849.
Advanced Biofuels Flowing From a Pump Near You
Yesterday I wrote about the potential consequences for ethanol if the ethanol tax credit is not extended.
What I alluded to, but didn’t go into detail about, is what will happen to advanced biofuels if the tax credit isn’t renewed.
Well, it depends.
I reached out to Purdue University agricultural economics professor Wallace E. Tyner to learn more about what could happen to advanced biofuels in the future based on the uncertain future of the tax credit.
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"It does not go to the ethanol producer anyway so long as the blend wall is binding as it is today.
"If the RFS is viewed in the industry as being iron clad (no exceptions), then the blender's tax credit also does not matter.
"Blenders have to buy the ethanol regardless of price.”
However, Tyner continued, if the RFS is not viewed as being iron clad (a view many opposed to ethanol hold) then the ethanol tax credit matters and may be needed to achieve production goals.
In other words, if the RFS2 is rescinded and refiners have no legal requirement to blend ethanol, there would be no room for advanced fuels and they would be dead in their tracks.
Fortunately, Tyner said that he believes most view the RFS as sufficiently binding and this means that it is the primary instrument of government policy today.
It also means that the subsidy is largely redundant.
He also noted that, “It is always difficult politically to remove an existing subsidy even if it has outlived it usefulness.”
So in a nutshell, even if the ethanol tax credit disappears, as long as the RFS stays in place, there should be some advanced biofuels flowing from the gas pump near you.
For more information, call 765-494-0199.
And Then There Were None
Dinosaurs. Mayans. The Roman Empire. What do they have in common?
They’re extinct.
Will the next thing to become extinct be the biofuels industry?
Let’s hope not but I’m afraid. Very afraid.
And you should be too. This is a big year for ethanol.
The tax credit expires at the end of the year; the ethanol tariff is up for review; the 2012 Farm Bill is under fire and the E15 Waiver is continually postponed by the power hungry EPA (i.e. the tailoring rule).
Unfortunately, while the ethanol industry lobbies to keep these incentives in place, Big Oil, Big Food and Big Green are rallying their troops against the only viable replacement we have for gasoline.
These groups, especially Big Green, are also killing next generation biofuels and drop-in fuels before they are ever born.
The biodiesel tax credit has yet to be extended and there was no vocal opposition to the tax credit.
There is huge opposition against all things ethanol.
Despite the loud voice of ethanol, we cannot assume success.
So am I sounding the alarm for biofuels.
Yes, we still have our supporters including the usual suspects, Senator Charles Grassley (R-Iowa) and Senator John Thune (R-South Dakota).
We also have many groups lobbying for ethanol including American Coalition for Ethanol, Growth Energy, the Renewable Fuels Association, and the National Corn Growers Association.
But it isn’t enough.
Every one of us needs to get involved. Now.
Before ethanol is added to the extinction list.
For more information contact:
• American Coalition for Ethanol—605-334-3381
• Growth Energy—202-545-4000
• Renewable Fuels Association—202-289-3835
• National Corn Growers Association—636-733-9004
Too Little, Too Late?
July 1, 2010 marked the day that the EPA began enforcing the RFS2.
From a biodiesel perspective, the RFS2 requires Big Oil to blend at least 650 million gallons of diesel this year.
It also holds them accountable to meet the 2009 blending requirements of 500 million gallons.
Big Oil, claiming that they are not opposed to the RFS, filed a suit against the EPA several months ago saying that it was “unlawful and unfair” that they have to meet 2009 biodiesel requirements, especially after the EPA missed their ruling deadlines last year.
However, the biggest argument Big Oil has against meeting the requirements is that they claim there are not enough biodiesel RINs to meet either year’s numbers.
Huh, I wonder how that could have happened?
Could it be the fact that our legislators, who had no vocal opposition to the biodiesel tax credit, have failed to pass an extension?
Even if it were to get extended and made retroactive, it still wouldn’t add significant biodiesel gallons to the marketplace this year.
The other problem – there is only a one-year extension on the table.
The industry needs at least a five-year extension to get back on its feet.
I find it deplorable that the President of “hope and change,” who purports support of green jobs, has allowed nearly 30,000 jobs to disappear.
I’m also justifiably concerned that the EPA, who appears to working against further development of biofuels, will stab the biodiesel industry in the back and revoke the RFS mandates for 2009 and 2010.
Hey Prez, this is definitely a wrong message to send.
For more information contact:
• Iowa Biodiesel Board—573-234-8935
• EPA—202-564-7849
Biomass Takes Global Center Stage
July 1—Earlier this week, the World Economic Forum released its new biomass report, “The Future of Industrial Biorefineries.”
The report ultimately concludes that there is enough biomass to replace all fossil fuels but there are some challenges that need to be overcome.
One of the biggest hurdles is identifying the best types of biomass. Corn stover and energy grasses are in the lead for commercialization, and research is being undertaken around the globe to ascertain what types of biomass will yield the most biofuels per acre.
But there are other hurdles: harvesting, transportation of crops, storage, infrastructure, lack of funding, and lack of cohesive public policy.
Sound familiar? It should.
These are the exact same issues facing first generation biofuels.
The U.S. has a very small window to continue its global lead on biofuels development —other countries are close behind.
Which ones? Those that have strong policies, incentives and private investors.
So wake up America. We have an opportunity to lead the world in sustainable biofuels production.
We’re blowing everything else biofuels. Let’s not blow this too.
For further information call: 41-(0)22-869-1212 or visit www.weforum.org.
Carbon Sequestration for Ethanol Plants - Boon or Bust?
June 30—As several pieces of legislation loom large to curb greenhouse gas emissions (GHGs), including the final 'Tailoring Rule' that came out from the EPA earlier this month, ADM has been awarded a $99.2 million grant from the DOE to build a second commercial-scale carbon sequestration project that will capture and store 1 million tons of CO2 per year.
The carbon capture and sequestration project (ICCS), estimated to total $163.9 million, will be attached to ADM¹s ethanol refinery in Decatur, IL.
Should the project be successful, the technology could offer ethanol plants a way to both meet or exceed pending GHG levels, as well as provide an additional revenue stream should a federal cap and trade policy be adopted.
What is unclear at this juncture is whether the technology will work (the coal industry has been grappling with carbon sequestration projects for years) or how much this technology will add to the cost per gallon of ethanol.
With ethanol margins already tight, carbon legislation could spell doom for those plants already in financial turmoil.
However, on the upside, carbon sequestration technology could spell boon, ultimately lower ethanol¹s cost per gallon, making it more cost competitive at lower oil prices.
• ADM
• EPA
Top Stories
- Growth Energy Proposes 'Fueling Freedom' Plan to Shift Ethanol Blending Incentives to Infrastructure and Flex-Fuel Development
- BP to Acquire Verenium Cellulosic Biofuels Business
- Between The Lines Advanced Biofuels Blog: Put Up or Shut Up
- EPA Proposes 2011 Renewable Fuel Standards
- ADM Opens Ethanol Plant and Heat and Power Cogeneration Facility in Columbus, NE (Herald-Review)
- New Blog Launches: Between the Lines Biofuels Blog by Joanna Schroeder
