Ethanol & Biofuels News

Obama touts investment in clean energy at D.C. meeting

U.S. President Barack Obama on Monday met with a group of clean energy entrepreneurs and researchers in Washington and, after taking in an exhibition of new advanced technologies, discussed his plans to spend more than $200 billion on clean energy research, development and implementation.

Obama outlined plans for $59 billion derived from the American Reinvestment Recovery Act and tax incentives that will “dramatically increase investment in cutting-edge research, development and deployment of clean energy technologies and incentives for private sector R&D,” a White House fact sheet said.

Environmental groups lobby EPA on ‘indirect land use’ change

In a letter to Environmental Protection Agency head Lisa Jackson, a coalition of environmental groups urged the EPA consider indirect land use change as part of its evaluation of ethanol and other biofuels under the Renewable Fuel Standard.

That standard requires that fuels such as ethanol have much lower emissions of greenhouse gas than the fuels they replace.

Many in the industry feel that the science of indirect land use is not advanced enough to be calculated and have urged EPA not to include such a measurement in the regulations, which are at the Office of Management and Budget for review at the present time.

Senate gets bipartisan bill to lower ethanol tariffs

A bill to lower U.S. tariffs on imported ethanol to achieve parity with the blender’s credit, which was reduced from 54¢/gal to 45¢/gal in last year’s farm bill while leaving the tariff unchanged, was introduced in the U.S. Senate last week.

The “Imported Ethanol Parity Act” directs the President to reduce the temporary duty imposed on ethanol to an amount “equal to, or lower than, any Federal income or excise tax credit applicable to ethanol under the Internal Revenue Code.”

Valero wins VeraSun facilities after bidding war wit ADM

Valero Energy announced Mar. 18 that the bankruptcy court overseeing the auction of VeraSun Energy’s assets has accepted Valero’s bid to buy VeraSun’s ethanol plants.

Valero, based in San Antonio, Texas, will pay $350 million for the five operating plants of the VSE group, along with sixth site under development. The plants produce a combined 560 million gallons of ethanol per year, putting a price tag on the deal at 63¢/gal..

Last month, Valero and VeraSun entered into a “stalking horse” agreement for Valero to purchase these six assets.

Cellulosic biofuels may not be ready; corn lobby could push its alternative: NPRA

The National Petrochemical & Refiners Association (NPRA) annual meeting kicked off in San Antonio Sunday with renewed controversies over U.S. biofuels mandates.

Asked at a press conference about the current 36-billion gallon biofuels mandate in U.S. federal law, NPRA President Charlie Drevna said he doubts that such a mandate can be met.

Most of the U.S. biofuels mandate is predicted to be met by ethanol-gasoline blending, with the remainder including biodiesel/renewable diesel blending in diesel fuel.

Renewable energy proponents Sandalow, Koonin appointed for top DOE posts

David Sandalow, a former Clinton administration environmental official, will be named to be the U.S. Department of Energy’s assistant secretary for policy and international affairs, the White House announced last Friday.

In addition, the administration also announced that it will nominate BP chief scientist, Steven Koonin, to the position of DOE chief scientist.

Both are seen as proponents of renewable energy and biofuels development.

Strong RBOB showing powers ethanol spot and future prices upwards

“As long as RBOB is trading near $1.50/gallon ethanol prices will rise because there will be more blending,” one trader said, noting that when gasoline was as low as $1 earlier this year almost all discretionary blending came to a halt.

AgStar to sell six ethanol plants it picked up at VeraSun bankruptcy auction

AgStar Financial Services will sell the six ethanol plants it picked up last week in the VeraSun bankruptcy proceeding, the company said yesterday.

And the other two bidders with “credit bids” are likely to do the same, industry sources said.

While much of the attention on the sale was focused on the oil industry giant Valero grabbing seven of the former VeraSun facilities (see story below) ten other plants were also sold by credit bid, where previous lenders essentially took over the plants for the amount they had invested in them.

Royal Dutch Shell puts biofuels at top of renewable energy list

As governments worldwide will be pursuing alternative forms of energy, Royal Dutch Shell executives said last week the company would focus its efforts on biofuels over other renewable sources such as wind and solar.

That focus will occur this year and next, executives said.

“We are in biofuels big time,” said Mark Williams, head of downstream operations, in a strategy presentation last week.

Lignol receives Canadian government support for Vancouver plant

Lignol Energy has received an additional $1.4 million (U.S.) in funding from the Canadian government that it will use to fine tune its cellulosic biorefinery in Vancouver, British Columbia.

Energy Secretary announces $1.2 billion in DOE funding

During a visit to the Brookhaven National Laboratory on Monday, U.S. Energy Secretary Dr. Steven Chu announced a $1.2 billion spending directive for scientific research and development. The funding was allocated from federal stimulus money under the American Recovery and Reinvestment Act.

“Leadership in science remains vital to America’s economic prosperity, energy security and global competitiveness,” Chu said, underscoring the near-term economic relief as well as strategic investment in future energy.

Aventine delisted by NYSE; moves to OTC as capitalization falls

The New York Stock Exchange will suspend trading of Aventine Renewable Energy Holding Inc.’s shares before trading opens Mar. 30 and the company will move to the Over the Counter market because the firm’s market capitalization does not meet NYSE guidelines.

Tate and Lyle stop work on $260 million Fort Dodge plant

Tate and Lyle stopped construction on its 100 million gal/year ethanol plant near Fort Dodge, Iowa, the company said last week.

Enerkem to build cellulosic ethanol plant in Mississippi

Enerkem Inc. will build a cellulosic ethanol plant in Pontotoc, Miss., the Montreal-based company said last week.

Enerkem said it has signed a memorandum of intent for the supply of 189,000 tons of unsorted municipal solid waste with the Three Rivers Solid Waste Management Authority, which will be used as feedstock at the plant.

UOP/Ensyn join forces for future fuels from pyrolysis oil

UOP LLC announced Mar. 24 that it will enter into a joint venture with Ensyn Corp. to establish Envergent Technologies LLC to offer “technology and equipment to convert second-generation biomass into pyrolysis oil for power generation, heating fuel and for conversion into transportation fuels.”

Novozymes sees current conditions as ‘speed bump’ at plant dedication

Declaring that the current slump in the ethanol industry is just a “speed bump,” Novozymes broke ground for a plant in Blair, Neb., on Mar. 24, with Denmark’s Crown Prince Frederik in attendance.

The plant, which will cost up to $200 million, will be used to produce enzymes, particularly ones used in cellulosic ethanol production.

Stellarwind opens pilot algae-to-fuel plant

Stellarwind BioEnergy has opened a pilot scale production facility for fuel from algae at its headquarters in Indianapolis, Ind.

Cellulosic ethanol firms call for EPA to raise blends to 15%

Eight cellulosic ethanol companies have added their voices to the chorus calling on the Environmental Protection Agency to lift the blend level of ethanol in gasoline to 15%.

E-20 blends no more harmful than gasoline to engines: Minnesota study

E-20 blends (80% gasoline, 20% ethanol) are no harder on car engines than regular gasoline, according to new research from Minnesota State University.

The university’s automotive engineering department found no problems with the blend on raw materials such as metals, plastics and so forth in the fuel system.