Category Archives: Biofuel Funding

The U.S. government plans to ramp up production and use of biofuels

Biofuel made in the USAThe U.S. government plans to ramp up production and use of biofuels to help lessen the country’s dependence on foreign oil, create new jobs and reduce greenhouse gas emissions.

Agriculture Secretary Tom Vilsack announced October 21 that the government will pay farmers to produce nonfood crops that can be refined into fuel and sold at fuel stations. The government will defray as much as 75 percent of startup costs for farmers who sign up for the program.

He also said that federal assistance will be available to construct five new biorefineries or bioenergy plants in rural America, and that matching funds will be used to get 10,000 biofuel pumps and storage sites installed over the next five years.


The secretary’s announcement came a week after the U.S. Environmental Protection Agency ( EPA ) said it would allow sales of fuel containing up to 15 percent ethanol ( E15 ) for auto model year 2007 and newer cars and light trucks. The EPA said it expects to make a decision soon on expanding the use of E15 in vehicles going back to model year 2001.

The Energy Independence and Security Act passed by Congress in 2007 calls for 36 billion gallons ( 136 billion liters ) of renewable fuel to be produced annually in the United States by 2022. That means the country must triple its production between now and then and that higher blends of ethanol — a corn-based ingredient that can be mixed with regular gasoline — must become more widely available, along with so-called advanced fuels produced from other crops.

Biofuel, like its fossil gasoline and diesel companions, creates greenhouse gas emissions. But the biofuel “carbon footprint” is just 40 percent to 80 percent that of traditional gasoline, depending on the product and how it’s produced.

President Obama has pledged to reduce oil imports and to create new and cleaner energy markets and jobs. The push for biofuels is one of many programs under way to meet those goals.

The Renewable Fuels Association, a trade group representing producers, estimates that the 10.6 billion gallons ( 40 billion liters ) of ethanol used in the United States in 2009 reduced greenhouse gas emissions from vehicles by 16.5 million tons. That’s equivalent to taking 2.7 million vehicles off the road, the group said.

Last year, production of renewable fuels supported nearly 400,000 U.S. jobs, adding $53.3 billion to the gross domestic product, the association reported.

In addition to the new policies aimed at vehicles, the U.S. Agriculture Department and the Federal Aviation Administration have signed a new, five-year agreement to develop crops that can be processed into jet fuel for the airline industry.

“I believe the need for energy security, a cleaner environment and better economic opportunity in rural America make the case for immediate action,” Vilsack said in an October 21 speech in Washington.

MORE ADVANCED BIOFUELS NEEDED

To meet the renewable fuel standard mandated by Congress, Vilsack said the nation must move aggressively to develop more advanced sources of biofuel such as cellulosic ethanol, biofuel produced from wood, grasses and nonedible parts of plants; and biobutenol, an alcohol similar to ethanol that is produced when corn, sugar beets and other crops are fermented.

He also asked Congress to extend a tax credit for traditional ethanol producers that expires at the end of 2010.

Some environmental groups have criticized the program, saying that taxpayers are spending billions of dollars to support the corn and ethanol industries even though the fuel does not provide a significant reduction in emissions. “Not all biofuels are created equal,” said Daniel Lashof, director of the Natural Resources Defense Council’s Climate Center.

According to the EPA, ethanol produced from corn at a modern refinery powered by biogas can represent a 20 percent greenhouse gas reduction compared with regular gasoline. Advanced fuels double or triple that.

With U.S. energy consumption expected to grow 50 percent by 2035 and with foreign oil now accounting for 60 percent of the market, Vilsack said the nation must change course.

“Today, we still send a billion dollars a day outside our shores helping other countries’ economies grow while our own economy recovers from a deep recession,” he said. “With the disastrous oil spill in the Gulf of Mexico, we are also reminded that the development of our own oil resources is not without environmental or economic risk. We can do better. We have to do better.”

The announcement of the Agriculture Department initiative on biofuels is available on the department website. The EPA ethanol announcement is available on the agency’s website, as is an agency analysis of greenhouse gas emissions from renewable fuels.

Source media-newswire.com

Syracuse University partnership substitutes petroleum diesel with biodiesel

Afghan biofuel

The Department of Defense (DOD) is working to increase the use of renewable energy to reduce dependence on fossil fuel resources

Syracuse University joins Arden-Foxs to advance the use of biofuels as an alternative energy source.  The effort involves entrepreneurs John Fox ’92 and Wayne Arden, who have proposed producing biodiesel in Afghanistan as a means to achieve multiple benefits, including reducing risks to American troops and building a new, sustainable economy in the country.

With energy demands growing at home bases along with many global deployments creating  logistical challenges, the Department of Defense (DOD) is working to increase the use of renewable energy to reduce dependence on fossil fuel resources and to achieve ‘net zero energy’ (NZE) throughout the military. The Arden-Fox report “Producing and Using Biodiesel in Afghanistan” analyzed latest off-the-shelf solutions that could be implemented to produce biodiesel in Afghanistan that will reduce casualties as well as create new industry for building a stable nation.

The creation of this new partnership will allow for piloting of the recommendations included in the report and documentation of the economical viability of the proposal.

The paper’s inspiration came from the commitment by President Obama to speed up the deployment of 30,000 troops to Afghanistan in 2009 and his announcement of the expected start of troop withdrawal from the country starting in July 2011.

“We recognize the extensive research and effort that has been put into developing these recommendations,” said Gina Lee-Glauser, vice president for research at Syracuse University.  “We believe that these recommendations have the potential to reduce U.S. casualties, and lessen the military’s dependence on petroleum. In the coming weeks, we will be partnering with John Fox and Wayne Arden to evaluate a parallel implementation at one or more U.S. military bases. The purpose of this partnership is to pilot the recommendations and document the economical viability of the proposal. This parallel implementation will help the DOD make further progress in making military bases in the U.S. Net Zero Installations.”

Japan invests $120m in Ethanol Plant

Japan Biofuel Investment

In the Philippines, the province of San Mariano, Isabela, is to receive a $120 million (€86 million) investment for the construction of an ethanol plant. The Japanese firm Itochu Corp. is behind the investment, while Green Future Innovations (GFI) will develop the project. GFI is a joint venture between Itochu, Japan-based JGC Corp., the Philippine Bioethanol and Energy Investments Corp. and the Taiwan-based holding firm GCO.

The project will see sugarcane planted across 11,000 hectares in San Mariano, creating jobs for roughly 15,000 farmers, in addition to a further 500 jobs in the new plant itself.
Once construction of the biofuel plant has finished in 2012 it will be the country’s largest ethanol production facility, manufacturing 54 million litres annually from 700,000 tonnes of sugarcane. The plant has also been designed to generate 19MW of electricity from bagasse, 13MW of which will be sold to the National Grid. ‘Right now we import 100% of our fuel needs…Through partnerships like this we procure ethanol domestically and provide added value for the low-income Filipino farmers,’ commented the CEO of GFI Alexander Uy.
Erwin Co, the marketing consultant at GFI, said: ‘Among our other Asian prospects, the Philippines is the most advances in its implementation of a biofuels law. We are glad to be attuned to the market demand, especially as the mandated 5% blend of ethanol in gasoline mix will climb to 10% by next year.’

In the Philippines, the province of San Mariano, Isabela, is to receive a $120 million (€86 million) investment for the construction of an ethanol plant.

Bioheat Focus of National Biodiesel Board Webinar

biofuel_plants

Bioheat Focus of National Biodiesel Board Webinar

The success of New York City’s 2 percent biodiesel requirement in heating oil … a mix known as bioheat … was recently touted during a webinar hosted by the National Biodiesel Board (NBB).

City Councilman James F. Gennaro, who spearheaded the Big Apple’s bioheat mandate, explained that New York started with using biodiesel in its heavy duty truck fleets. That success led to including biodiesel in the city’s one billion gallon a year heating oil plans.

“I saw this as a great way to move in a very good direction and help us clean the air in New York City.”

Russias first biofuel plant

Russia's First Biofuel Plant

Russia's First Biofuel Plant

Russian Technologies, a state holding for companies involved in innovation, has announced plans to begin construction of the countrys first biofuel plant in the spring. The plant, in east Russia, will use timber by-products to produce biobutanol, said CEO Sergei Chemezov. Given its huge reserves of fossil fuels, green alternatives have struggled to gain government attention over the years.However, a state programme to get a biofuels sector up and running was announced in 2008, and timber industry players were told that the government was ready to back up to 30 production plants.A government official said Russia hopes biofuel exports could help redress its trade balance with the EU given the high prices on the European market.

Source Telegraph.co.uk

Manchester Biofuel Project Wins EU Funding

Manchester University

The Manchester team is made up of The University of Manchester and eight partners

A Manchester project has won funding from the European Union to enable it to develop a biofuel, reports Manchester University. The project involves developing photosynthetic microorganisms which will convert solar power and carbon dioxide into an engine fuel.

The Manchester team is made up of The University of Manchester and eight partners. They plan to produce a source of renewable energy which won’t mean that agricultural land is used for energy crops.

The Manchester Faculty of Life Sciences team is led by Professor Nigel Scrutton and Professor David Leys. Prof Scrutton said “The successful outcome of the DirectFuel project will revolutionise the production of biofuels by engineering photosynthetic microbes that produce engine-ready fuels without the need to harvest biomass. Through this paradigm change, increases in efficiency will result that will have major, sustainable, positive impacts on the environment and the economics of renewable energy production”.

Consortium undertakes biofuel conversion project

biofuel tax credit legislation

Using spruce chips, wheat straw and waste bran as potential sources for fermentation by micro-organisms to produce bioethanol

A consortium of EU-funded research institutes, universities and industrial partners is using spruce chips, wheat straw and waste bran as potential sources for fermentation by micro-organisms to produce bioethanol.

The consortium is also discovering new enzymes that could help carry out this process.

Wheat straw, spruce chips and wheat bran are all considered waste materials from different industries and are found in large quantities across Europe.

A major constituent of them is lignocellulose − a mixture of carbohydrate molecules bound to lignin, the component that forms the basis of wood.

Lignocellulose gives trees and plants their strength and durability, and it is these properties that have held back the exploitation of lignocellulosic materials for biofuel production.

The molecular nature of lignocellulose makes it resistant to the actions of micro-organisms that could otherwise convert it to simple sugar molecules needed to make biofuels.

The EU-funded DISCO project is searching for micro-organisms that can degrade the lignocellulosic material.

Canada Probes the Frontiers of Biofuel

canadian flag

Canada pushes the Biofuel Frontiers

Four enterprising Canadian firms have joined the race to replace fossil fuels with affordable and planet-friendly second-generation bio alternatives.

Toronto, Canada Despite decades of work, most next-generation biofuels — made from materials that do not compete with food production — are still at the reaserch and development stage. But a few Canadian operations are among the dozen or so that are either commercial or very near to it — and each has the potential to change how the world fuels up its vehicles.
Enerkem: Speeding to Market
Since its emergence from a small research laboratory in Sherbrooke University in 1999, Quebec-based Enerkem has continued to pursue aggressive growth, and it is now completing a large commercial facility to turn Edmonton’s municpal garbage into some 36 million litres of bioethanol a year. The plant, scheduled to begin operating from mid-2011 onwards, is set to become the world’s first commercial operation to turn municipal solid waste (about 100,000 tonnes annually) into ethanol for fuelling vehicles.

Malaysia considers cutting diesel subsidy to boost biofuels

Malaysia biofuel

Cutting diesel subsidy to boost biofuel

Malaysia said Monday it would consider cutting a diesel subsidy next year in a bid to make its biofuel industry more attractive after production of the alternative fuel virtually ground to a halt.

Malaysia has aims to become a global leader in biodiesel, but the once-vaunted industry has come to a standstill since March, when the government delayed a move to require oil companies to sell it alongside conventional fuels.

The plan was originally due to take effect in 2007 but will not now come into force until June 2011.

Malaysia Palm Oil Board (MPOB) figures show that the production of biodiesel, a mixture of diesel and five percent processed palm oil, dropped 99 percent from 12,640 tonnes in March to just 137 tonnes in July.

Plantations and Commodities Minister Bernard Dompok said the government was looking at cutting the subsidy for diesel, which currently costs 1.75 ringgit (0.58 dollars) per litre, to encourage the use of the biofuel.

“Because of the subsidy on diesel, it has somewhat distorted the price for biodiesel to be utilised,” Dompok told reporters at the sidelines of a palm oil conference.

“There is an element of increase in the pump price (of diesel) and this is what the government is looking at I think by 2011.”

He said the new rule on biofuel sales was on track for June next year, with the government providing funds to several oil firms, including Malaysia’s Petronas, to set up biofuel blending facilities.

The fall of oil prices from mid-2008 highs, when biofuels were a significantly cheaper alternative, has led many to stick to conventional fuel, raising questions over the future of biodiesel.

The rising price of Malaysia’s palm oil means the cost of manufacturing biofuels is high, and industry leaders are concerned they cannot cover their costs without government subsidy.

Malaysia has approved 56 licences for biodiesel output, which would create a production capacity of 6.8 million tonnes, but most plants have not been set up.

Malaysia aims to produce 17.8 million tonnes of palm oil this year with the country’s second largest palm oil firm, IOI, bullish that prices would hit the 3,000 ringgit per tonne benchmark “soon” due to tight supply.

“There are rains every day and we have a labour shortage (on the plantations),” IOI executive chairman Lee Shing Cheng said, adding that he believes the government is working to resolve the labour shortage.

Palm oil was trading between 2,650 to 2,700 ringgit per tonne on Monday.

Malaysia is the world’s second-largest exporter of palm oil after Indonesia, and the two countries account for 85 percent of global production.

Source mysinchew.com

Hardest part of reaching biofuel goal awaits

biofuel sticker

halfway to achieving its goal of 36 billion gallons of renewable transportation fuel

The United States is roughly halfway to achieving its goal of 36 billion gallons of renewable transportation fuel by the year 2022, but the last half likely will be harder, and probably more expensive, than the first.

John Whitaker, Iowa executive director for Farm Services Administration of the U.S. Department of Agriculture, told a symposium last week that as many as 527 new biofuel plants will be needed, in addition to the 171 ethanol plants now working, to meet the mandate.

The cost: $168 billion.

“Corn ethanol has gotten consumers to accept ethanol as a fuel,” Whitaker said. But he noted that the congressionally imposed mandate sets a 16 billion-gallon limit on ethanol’s contribution to biofuels. The rest has to come from other sources such as switchgrass and miscanthus, algae, wood biomass and electrification.

Robert Brown, who directs biofuels research at Iowa State University, observed that Iowa and other corn states contributed to the big surge in ethanol production in the last decade without major technological breakthroughs.