NBB Highlights Biodiesel's Environmental Benefits

JEFFERSON CITY, Mo.– The National Biodiesel Board today reaffirmed its commitment to sustainable biofuels production and highlighted the numerous environmental and energy benefits of increased production and use of biodiesel.

“The facts are clear - America’s biodiesel industry is producing a sustainable fuel that is good for the environment,” said NBB CEO Joe Jobe. “The NBB opposes the use of non-sustainable agriculture practices worldwide. Our recently established Sustainability Task Force is working to ensure that the U.S. biodiesel industry continues to protect the environment, while producing jobs and reducing dependence on foreign oil.”

A U.S. Department of Agriculture (USDA) and Department of Energy (DOE) study has already shown soy-based biodiesel has a 78 percent carbon dioxide reduction. This study takes into account everything from planting the soybeans to delivering biodiesel to the pump. A 2007 update to the study found that for every unit of fossil energy it takes to make biodiesel, 3.5 units of energy are gained.

Further, the Renewable Fuels Standard (RFS), which was recently expanded under the 2007 Energy Bill, includes a requirement that biomass-based diesel, which includes biodiesel, reduce greenhouse gas emissions by 50% compared to petroleum diesel fuel in order to qualify as an advanced biofuel under the program. Based on the USDA/DOE’s previous analysis, NBB fully expects biodiesel to exceed this threshold.

In addition, NBB noted the following:

• In the United States, more than 80% of estimated 2007 biodiesel production came from domestic soybean oil. The rest was divided among other feedstocks such as recycled cooking oil, fats, and vegetable oils from other oilseed crops.
• The USDA reports that U.S. acreage for crop production has not increased since 1959. Major land use changes in the United States that would endanger environmentally sensitive lands are not expected due to biofuels.
• The United States is the largest exporter of soybeans in the world, making the importation of soybeans from countries with non-sustainable agricultural practices less likely. Other nations have already been increasing soybean production for decades.
• According to U.S. Census data, the country currently has the equivalent of more than 400 million gallons of soybean oil sitting in inventory. The 2009 RFS goal is the use of 500 million gallons of biomass-based diesel, which includes biodiesel. Soybean oil only represents half of the domestic raw materials available for biodiesel production in the United States.

The NBB is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S. Its membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.

House approves Energy Tax Bill

as reported by National Biodiesel Board

On Wednesday, February 27, 2008, the House passed H.R. 5351, the Renewable Energy and Energy Conservation Tax Act of 2008, by a 236 to 182 margin. Among its provisions, the bill:

• Extends the biodiesel tax incentive for 2 years through December 31, 2010.


• Properly classifies the tax treatment of co-processed renewable diesel.


• Retroactively denies the biodiesel tax incentive on "splash and dash" transactions.


• Limits the biodiesel tax credit to fuels produced in the U.S. for use in the U.S.

The fate of H.R. 5351 in the Senate remains uncertain. In addition, the Administration has signaled opposition to the measure based on provisions in the bill unrelated to biodiesel. Read the Administration’s SAP on H.R. 5351.

You may also read these documents relevant to NBB's interest in H.R. 5351:

NBB CEO Joe Jobe’s letter to U.S. Representative Charles Rangel (D-NY), the Chairman of the U.S. House Committee on Ways and Means, regarding H.R. 5351.

Joint Committee on Taxation’s (JCT) description of H.R. 5351

JCT’s revenue estimate for the bill.

Study Shows Strong Farm Bill Energy Programs Would Help Curb Global Warming

"Congress Must Invest at Least $1 Billion a Year in Energy Title to Benefit Environment, National Security and Rural America."

from FarmEnergy.org

CHICAGO, IL - A new study shows that farm-based renewable energy and energy efficiency programs in the U.S. Farm Bill could reduce greenhouse gas pollution by 57 million metric tons a year - the equivalent of eliminating the pollution from over 11 million cars.

The study, "Mitigating Global Warming through the Farm Bill," is the first to examine the potential greenhouse gas savings of the Farm Bill Energy Title. The study assumes funding of at least $1 billion a year, or $5 billion over the five-year life of the legislation, which is less than 2% of the total Farm Bill Budget. The programs in the Energy Title encourage development of farm-based and rural renewable power generation, biofuels facilities, and energy efficiency projects that provide low-carbon energy alternatives.

"Now is the time for Congress to fight global warming through innovative farm policy," said Howard Learner, Executive Director of the Environmental Law & Policy Center (ELPC), which conducted the study. "In a time of rising concern over the causes and consequences of global warming, these programs can put our nation on the right track."

Read more>>

Iowa State, REG join effort to turn plastic into biodiesel

from The Hawk Eye

AMES -- Iowa State University researchers and biodiesel producers are participating in a federal project to turn plastic trash from military bases into fuel.

The project, funded this year with $1.65 million in federal money, could save $12 million annually in military waste disposal costs, said Rep. Tom Latham, the Iowa Republican who helped secure the funds.

"We have the greatest opportunity I've seen in my lifetime, today in Iowa, to be part of a solution, and that is to reduce our need for importing oil from overseas," Latham said. "There are huge concerns we all have about plastics going into our waste sites."

The research can change the way plastic is disposed, said Balaji Narasimhan, an Iowa State University associate dean of research and economic development.

General Atomics, based in San Diego, is the project's lead contractor. Renewable Energy Group Inc., a biodiesel producer and marketer in Ames, and ISU researchers will contribute to the project.

Mitch Zafer of General Atomics said temporary military bases -- where the technology will most likely first appear -- produce 3,200 pounds of garbage every five days. About 330 pounds of that is plastic.The technology would use the plastic trash to help make diesel fuel to be used at camp, Zafer said.

Arkansas SoyEnergy Opens Crush/Biodiesel Facility

from Arkansas Business

Arkansas SoyEnergy Group LLC on Tuesday marked the opening of what it says is the "first and only" biodiesel facility in Arkansas with an on-site crusher, making it capable of taking locally-grown soybeans "from the field to the fuel tank" at one location.

The facility, at Arkansas SoyEnergy's DeWitt plant on 2780 Highway 165 South, began operating in mid-2007, and fuel production will begin in April.

Arkansas SoyEnergy said its fuel production facility has the capacity to make 3.5 million gallons of biodiesel now, and can be expanded up to 10 million gallons. The facility is designed to produce cost-competitive biodiesel and other byproducts, and be a "significant contributor to the economy of Arkansas County and southeast Arkansas."

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NBB Expresses Support for "Sustainable Biodiesel"

from a Press Release issued by National Biodiesel Board (NBB)
(originally posted on February 4, 2008 - see update)

JEFFERSON CITY, Mo.– The National Biodiesel Board (NBB) supports efforts to ensure that biodiesel produced and sold in the U.S. comes from sustainable resources. On Monday, Feb. 3, at the National Biodiesel Conference & Expo, NBB Chairman Ed Hegland announced the appointment of a Sustainability Taskforce. The taskforce will look at ways that NBB can support efforts to ensure the world’s resources are used responsibly for biodiesel production. The NBB opposes the use of non-sustainable agriculture practices worldwide in biodiesel production.

The Renewable Fuels Standard (RFS), recently expanded under the 2007 Energy Bill, includes a requirement that specifies fuels must meet a threshold of 50% carbon reduction to be eligible. NBB is committed to working with the Environmental Protection Agency to ensure that this is developed in a meaningful way, and enforced.

Read more>>

UPDATE! NBB Appoints Members to Sustainability Task Force
Click here for details

60mmgy biodiesel plant placed on hold in Quincy

Building costs; Commodity prices cited as reason for "reluctance to step forward now."
from the Quincy Herald-Whig
By RODNEY HART Herald-Whig Staff Writer


Plans for a 60-million gallon biodiesel plant in Quincy have been put on hold.
America's Renewable Energy LLC, a division of Iowa-based Ewing Land Development and Services, announced plans 13 months ago to build a $77 million biodiesel plant in the south Quincy bottoms. It received a permit in July from the Illinois Environmental Protection Agency to proceed.

But Jim Mentesti, president of the Great River Economic Development Foundation, said America's Renewable Energy is reluctant to step forward on the project right now.

Mentesti said construction costs, high corn prices and fluctuations in the agricultural market contributed to the decision. America's Renewable Energy continues to study the project and decide what to do and when to do it, Mentesti said.

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Video: Renewable Diesel Derived from Algae

Solazyme video shows algae production process to make renewable, alternative fuels and alternative petrochemicals.

Boeing explores using biofuel to power jets

from The Wichita Eagle
BY TRACY ALLOWAY
Bloomberg News Service

LONDON - Boeing Co. said its planes may fly on a mix of biofuel and jet kerosene within five years.

The company has been examining the use of alternative fuels for two years, environment director Billy Glover said. A Virgin Atlantic Airways Boeing 747 is scheduled to make the first biofuel-powered test flight for a commercial plane later this month.

Boeing is focusing on so-called second-generation biofuels, which would be more environmentally friendly, Glover said. Algae has the "highest yield potential," he said. Oil from Babassu nuts -- grown in South America -- and the hardy Jatropha bush also are being considered.

"It can't be much more expensive, if any. How it's going to be price-competitive will depend on the processes selected, it'll depend on policy elements around biofuel, whether or not there's any assistance."

First-generation fuels such as vegetable oil may use up scarce water resources and compete with subsistence food crops in poorer countries.

"I think we're going to have a commercial product within about five or six years," Glover said. The percentage of biofuel in the blend will initially be "fairly low" because of the difficulty in producing it, he said.

Read more>>

S.D. Tax Break Would Be Provided For Biodiesel

from the Press and Dakotan (Yankton)

PIERRE (AP) -- It may be a few years before biodiesel production in South Dakota reaches the point that would trigger a tax break at the pump for motorists.

That's what legislators were told Friday during review of a bill to reduce the state motor fuel tax on biodiesel.

Biodiesel is a blend of soybean oil and diesel fuel.

SB148 would cut the 22-cent tax on diesel fuel to 20 cents if it contains at least a 5 percent blend of plant oil.

The bill cleared the House State Affairs Committee 11-0, sending it to the House floor. The tax break would not start until biodiesel production capacity in the state reaches 20 million gallons a year.

Call for Paper: Algae Biofuel Summit 2008

Peering into the future seldom produces a clear picture. But this is not the case with biodiesel. Its long-term impacts on the global economy appear to be pretty clear. The future of biodiesel is secure. The question is what feedstock for biodiesel is sustainable and profitable in the long term. As sustainable alternatives are sought in a bid to enhance energy security as well as reduce carbon emissions, the focus of researchers has shifted to "second- generation" Biodiesel – those not made from food crops such as soy or palm. It has been conclusively established that, in terms of per hectare oil yield, algae could be the most efficient source of feedstock for Biodiesel industry.

Growdiesel Climate Care Council is pleased to invite you to the inaugural International Summit on Algae Biofuels to be held on 18th & 19th September 2008 at New Delhi, India. The conference is focused on next generation of Biofuels using Algae as main feedstock. The summit offers an excellent opportunity to Renewable fuel Sector, their associates and academia to share their valuable experiences and knowledge.

OBJECTIVE
The main objective of the Summit is to provide an improved up-to-date understanding of the next generation feedstocks and technologies in Algae Biofuel Industry. The Summit will be an excellent platform to disseminate information regarding recent research and development activities in the field of Algae, mass production systems, Photobioreactor technologies and other important areas of Algae Biofuel Industry. In view of Biofuels emerging as a trillion dollar futuristic industry, the summit shall bring out many value added consulting opportunities for the speakers as well as industry experts. The technical & financial topics of summit will cover the whole Algae Biofuel Industry.


ORGANIZER
Growdiesel Climate Care Council a non-profit, non-commercial organization is dedicated to the cause of climate care through prevention of Global Warming. Growdiesel is an Alliance Member of NATIONAL BIODIESEL BOARD, USA and Member of CANADIAN BIOMASS INNOVATION NETWORK. Growdiesel is also the consultant to MINISTRY OF RAILWAYS, Govt. of India. Growdiesel has organized more than 500 seminars, workshops & training programs for the benefit of industry, farmers & society as a whole, till date.

On behalf of Growdiesel Climate Care Council, I invite your participation in technical deliberations by contributing a paper. A comprehensive list of proposed topics is enclosed herewith. However you are free to suggest some other topics in the field of Algae Biofuels. The consent form to submit the abstract/s may please be submitted by 28th February 2008 through email at gc@growdiesel.com or growdiesel@gmail.com.

Atul Saxena
Founder & Managing Trustee
Growdiesel Climate Care Council,
B-196, Surajmal Vihar, Delhi-110092. India.
Ph :-+91 11 32904064, +91 11 65803335, Fax : +91 11 42404335.
Email :- gc@growdiesel.com , growdiesel@gmail.com

House Scheduled to Consider Energy Tax Legislation

On February 12, 2008, U.S. Representative Charlie Rangel (D-NY), the Chairman of the U.S. House Committee on Ways and Means, unveiled H.R. 5351, the Renewable Energy and Energy Conservation Tax Act of 2008. The package, which is very similar to the energy tax package approved by the House in August, 2007, contains a host of tax incentives designed to promote renewable energy technologies. The cost of the measure is offset with revenue raising measures that impact the oil and gas industry. View the summary of H.R. 5351 provided by the Ways and Means Committee.

Biodiesel Provisions:

H.R. 5351 provides the following changes to the biodiesel tax incentive:

• Extends the biodiesel tax incentive through December 31, 2010. Under current law, the incentive expires after December 31, 2008.
• Extends the renewable diesel credit and the alternative fuels credit through December 31, 2010.
• The provision also modifies Renewable Diesel Credit to provide “uniform treatment of diesel produced from biomass” without regard to feedstock in the following way:

1. Removes requirement that thermal depolymerization process be used.
2. Strikes D396 (home heating oil) as a fuel eligible to receive the renewable diesel credit.
3. Fuel must hit D975 and Section 211 of Clean Air Act.

• Denies $1.00 per gallon renewable diesel credit to fuel derived from petroleum co-processing. This is consistent with the provisions of H.R. 2361, the Doggett/Hulshof bill endorsed by NBB.
• Provides that biodiesel, renewable diesel, ethanol or fuels eligible for the alternative fuels credit must be produced in the U.S. for use as a fuel in the U.S. This would preclude exported biodiesel from claiming the $1.00 per gallon excise tax credit effective December 31, 2008. To address so-called "splash and dash" transactions, the bill retroactively denies the credits to fuels produced outside the U.S. for use as a fuel outside the U.S. For biodiesel, this would deny credits claimed for "splash and dash" transactions retroactive to the creation of the biodiesel tax incentive in the JOBS Act, which was enacted in October, 2004.

Outlook:

The full U.S. House of Representatives is expected to consider H.R. 5351 during the week of February 25, 2008, and the bill is expected to pass in the House. The prospects for the measure in the U.S. Senate remain uncertain. Previous attempts to approve energy tax packages in the Senate have failed to achieve the 60 votes needed to invoke cloture and move to passage due primarily to objections associated with oil and gas revenue raisers. In addition, the Administration has on multiple occasions threatened to veto legislation pending before Congress based on objections to similar tax revenue raisers. NBB DC staff will continue to closely monitor this issue and work with biodiesel supporters in Congress to get an extension of the biodiesel tax incentive enacted into law.

Farm Bill Negotiations Continue

Last year, both the House and Senate approved separate versions of legislation to reauthorize the federal Farm Bill. Efforts in Congress to reconcile the two bills and to craft a package that meets with the approval of the Administration continue. Authorization for the current Farm Bill expires on March 15. The main stumbling block to completion of the Farm Bill continues to be a lack of funding sources that are acceptable to all parties that would make the bill comply with Congress' PAYGO budget requirements.

As part of the process, Congressman Collin Peterson (D-MN), the Chairman of the U.S. House Agriculture Committee, has engaged in discussions with both the Administration and Congressman Bob Goodlatte (R-VA), the senior Republican on the House Agriculture Committee, on crafting the outline of a package that would garner the President's approval. Read a summary of the Peterson compromise Farm Bill proposal. You can also read the following:

Peterson/Goodlatte letter to the U.S. Senate

Peterson/Goodlatte open letter to the parties interested in the Farm Bill.

NBB's top priority for the Farm Bill remains the reauthorization of a CCC Bioenergy Program that provides payments to producers for all gallons produced. NBB will continue to work through the process to advocate for a Bioenergy Program that provides maximum benefit and equity for biodiesel producers.

Penn State B100 exploration "Effective"

University finds "no sign of degraded performance or power" in tests of B100 in New Holland tractors
from The Daily Collegian (Penn State)
By Elizabeth Murphy Collegian Staff Writer

Penn State's exploration into the effects of using 100 percent biodiesel fuel in farm tractors is now showing promise that could turn the grass greener and make the sky bluer.

The tractors, fueled by biodiesel, have shown no negative effects in two years, Glen Cauffman, Penn State manager of farm operations and facilities, announced Jan. 28. There has been no sign of degraded performance or power, he said.

"[Using biodiesel] is the right thing to do because it is contributing to the greening of Penn State," Cauffman said.

Read More>>

Railroad to make its own biodiesel

By Kris Bevill

A steady supply of affordable biodiesel is hard to come by in the Pacific Northwest. That’s why Green Diesel Inc. has decided to make its own. The subsidiary of Tri-City & Olympia Railroad Co. (railroad code TCRY) in Richland, Wash., will produce biodiesel for TCRY locomotives, making it the first known railroad company to produce its own biodiesel.

TCRY currently handles approximately 100 cars on its 127-mile short line and uses 500 gallons of fuel each week.

Dave Samples, director of business development for TCRY, said Green Diesel has built a small research plant in Richland, capable of producing 1 MMgy. Samples said the facility could begin operating as soon as mid-April. Green Diesel General Manager Jack Farrell said the plant is designed to produce fuel in small batches. “Part of the problem that plants are having is that the industry right now is not economically feasible to handle huge, continuous-flow plants,” he said. “We’re not convinced that bigger is better. [We] can run 50 gallons or 50,000 gallons, it doesn’t matter. I can do it once today or 10 times this week. We took a conservative approach to this. We wanted to be able to keep our expenses and up-front costs low and not gamble on the industry until our research is complete.”

Read More>>

REG offers truck stops a biodiesel network

from eTrucker.com

Renewable Energy Group, a biodiesel producer and marketer based in Ames, Iowa, announced a new service Jan. 29 designed to make biodiesel more available at truck stops nationwide.

REG's Retail Biodiesel Blending Program, announced at the NATSO Show in Orlando, Fla., offers truck-stop operators both biodiesel injection equipment and a regular supply of high-quality biodiesel.

Because REG can remotely monitor fuel levels in its biodiesel tanks, truck-stop operators can enjoy an automated reorder process to ensure they don't run out, REG said. Truck stops also will be able to remotely adjust biodiesel blends daily, the company said.

Read More>>

Environmentalists Debate the Promise of Biofuels

Click on the logo to visit the NPR webpage for an overview of the discussion on the net carbon efficiency of biofuel production. The webpage also includes an audio link to the entire program.

NPR Program "Talk of the Nation: Science Friday" included an informative discussion with researchers who recently published a report in Science Magazine questioning the environmental impacts of biofuels production. (See the NRDC report that expresses the need to adopt a federal low-carbon fuel standard.)

This study took carbon efficiency accounting past the obvious concerns about clearing old growth forests or rainforests to produce corn, soy, palm, or other feedstocks for biofuels. This research expresses additional concern - and quantifies some of the net carbon detriment - relative to converting present food crop acreage or undisturbed prairie grasslands for fuel crop production.

Governor Schwarzenegger in California has promoted a carbon efficiency accounting system that will be applied to all biofuels offered for sale in California. Environmental groups are promoting the same such accountability nationwide to assure we gain maximum effect from renewable biofuels in our effort to combat global climate change. This latest research reinforces a need to maintain a "cradle to grave" assessment of all biofuels to assure effectiveness and to award efficiencies in the marketplace.

The "Science Friday" discussion also included a visit with two companies (Solazyme and Coskata) that are producing the "next generation" of biofuels, including those made from algae and from organic waste. Ultimately, they present a roadmap for the way in which biodiesel and other renewable fuels can continue to improve their net carbon efficiencies while creating "Home Grown Fuel for a Better Wisconsin."

Also see the NRDC discussion of their advocacy for a federal low carbon fuel standard. It presents an informative look at sustainability of biofuels.

WTN: Conservation, biofuels, and alternative energy are state's sweet spot

From Wisconsin Technology Network

by Tom Still

Madison, Wis. - Translating the aspirations of political leaders into real policies and action isn't always easy, especially when the goal is changing how our economy uses energy and from what sources it is generated.

In Wisconsin, however, a combination of researchers, private-sector leaders and policymakers are taking seriously the challenge of building a brighter energy future - and finding no shortage of ways to come together to talk about it.

Read More>>

(Including legitimate blog concerns written in response about sustainability issues that are presently being addressed by the biofuels industry.)

Sustainability; Feedstock Development take center stage at NBB Convention

Sustainability and feedstock development were the buzzwords at the fifth annual National Biodiesel Conference & Expo in Orlando, Fla. this week. A diverse cross section of biodiesel stakeholders from around the world attended the event Feb. 3 – 6. Industry leaders predicted that biodiesel will grow to a billion gallons a year in this country in the next few years and turned their attention to sustainability issues and developing the next generation of biodiesel. About 3,600 people attended the conference.

As always, the conference served as a platform for plenty of biodiesel news. Check out the Biodiesel Blog! You can read a daily account of the conference, view and download photos, watch videos and listen to audio interviews.

Energy Balance for Biodiesel has improved by 10%

NREL & USDA announce new findings that biodiesel provides 3.5 units of energy per unit of input - ranking biodiesel among most efficient sources of alternative energy. Improvements in biodiesel processing cited as reason for inceased efficiencies.

The National Renewable Energy Lab and the USDA announced in Orlando the findings which show that the energy balance of biodiesel has inceased from 3.2:1 to 3.5:1. These findings are a result of the first efficiency study of biodiesel performed since the calculation was last updated in 1998.

By point of reference, petroleum diesel is calculated at an energy balance of 0.83:1.

Below are the calculations made on other fuel sources (renewable and otherwise) as reported by EnergyBulletin.net reports EROEI (Energy Return on Energy Invested):

Coal- 1:1 to 10:1
Ethanol- 1.2:1
Natural Gas- 1:1 to 10:1
Hydropower- 10:1
Hydrogen- 0.5:1
Nuclear- 4:1
Oil- 1:1 to 100:1
Oil Sands- 2:1
Solar PV - 1:1 to 10:1
Wind - 3:1 to 20:1

You can read the NBB Press Release announcing this study by clicking here.

Click here for an NBB Conference Report, including an informative audio report from University of Idaho Department Head of Biological and Agricultural Engineering Jon Van Gerpen. Van Gerpen was one of the lead researchers who worked on the NREL/USDA study.

As chicken fat prices soar, Georgia biodiesel industry heads for slowdown, shutdown

from Biofuels Digest

In Georgia, chicken fat prices have soared to 34 cents per pound, causing production slowdowns at several biodiesel facilities in the state that had switched to fats after an earlier run up in soy oil prices. Companies such as Middle Georgia Biofuels and US Biofuels had switched to all-fat production and Alterra Energy had been forced to delay operations at two new plants under construction at Plains and Gordon.

In recent months, researchers at the University of Arkansas developed a new, fast process for biodiesel that has recorded yields of more than 90 percent using chicken fat and converted tall oil fatty acids. The latter is a by-product of the wood-pulping industry.

Use of the low-cost feedstocks had been previously limited by long reaction times, and the amount of methanol required by conventional processes. Companies such as Tyson Foods have established partnerships, in Tyson’s case with ConocoPhillips, to develop chicken-fat based (renewable diesel).

US, Brazil, EU agree on Roadmap to common biofuels certification standards

from Biofuels Digest

The United States, Brazil and the European Union (EU) released their “White Paper on Internationally Compatible Biofuels Standards” that will pave the way towards a unified international standard for biodiesel and ethanol. An international committee found that 9 of 16 standards were “in alignment” while 6 could be be aligned in the short term. Only 6 biodiesel standards were found to be aligned, and the committee found recommended that the remainder could be aligned through blending biodiesel varieties.

In Washington, the Government Accountability Office said last week that biofuels trade would decline and energy prices would climb unless global standards for biofuels are developed. The GAO said that “the array of incompatible gasoline and diesel blending stocks, and final blended products that cannot be interchanged at the retail level” are reducing opportunities for trade. The GAO recommended that the Departments of Transportation and Energy “encourage uniform biofuel and petroleum product blending practices.”

The Transatlantic Economic Council (TEC), which met in Washington in November, is expected to propose definitive standards for biofuels trade.

Read More>>

Wisconsin start-up company responds to needs in biodiesel industry

Biodiesel industry sparks Marquette research that is spun off into establishing Paradigm Sensors, LLC as new Start-up in Milwaukee
from Milwaukee Journal Sentinel (JSOnline):
By KATHLEEN GALLAGHER
kgallagher@journalsentinel.com

(NOTE: Paradigm Sensors is a member of Wisconsin Biodiesel Association, and CEO Robert Young serves on the WBA Board of Directors)

(Milwaukee) A small Milwaukee start-up that's attracted strong interest from local angel investing groups is launching its first product, a biodiesel analyzer, at a national industry conference.

A year after spinning its proprietary technology out of Marquette University's engineering school, Paradigm Sensors LLC has five full-time and two contracted employees, and is bringing to market a hand-held sensor that judges the quality of biodiesel fuel.

The $5,000 device is about the size of a cordless phone. It tests for total glycerin, methanol, acid number and the percentage of biodiesel fuel in a blend, said Robert Young, Paradigm's president and chief executive officer.

The sensor emits electric frequencies to measure the electrochemical responses of liquids using a technology called impedance spectroscopy. The device was to make its debut Sunday at the National Biodiesel Board Expo in Orlando, Fla.

"It really is a potential paradigm-shift technology," said Herb Zien, senior vice president of Trigen Cos. in Boston, chairman of Paradigm's board and an investor in the company. "This device can perform onsite, in real time, as compared to having measurements on these oils that go to the lab and take some time to get results back."

The only other way to get the information that Paradigm's device delivers in minutes is to send fuel to a lab, which is expensive and can take several days, said investor George Mosher.

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Colorado Springs biodiesel fleet rated No. 1 in U.S.

Western City leads by example in promoting renewable energy


from The Denver Post
Colorado Springs was ranked as having the top municipal biodiesel fleet in the nation last week by Government Fleet Magazine. The city beat out San Francisco and Austin, Texas, for the award.

Golden-based Blue Sun provides the city, along with Fort Collins, Denver and Boulder, with a mixture of 20 percent oilseed-based bio diesel and 80 percent petroleum-based diesel.

Since 2003, more than 2,400 city vehicles and pieces of equipment have run on Blue Sun's fuel. To date, Colorado Springs has used nearly 1.6 million gallons of the fuel.

Should America invest in Biodiesel?

from Helium.com
by Barnaby Meins

Americans have long wondered what the future of the energy industry holds for their country. There are many renewable alternative energy sources to petroleum, of which, biomass is fast becoming a major opportunity for investors. In the biomass energy segment, biodiesel is a key area which many are starting to focus on. For one to answer whether America should invest in bio diesel in a big way, we need to explore the benefits and drawbacks before coming to a conclusion.

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Algae production passes Montana Winter testing

from Green Star Products (GSPI) press release

SAN DIEGO — January 31, 2008 — Green Star Products, Inc. (OTC: GSPI) today announced that it has successfully completed Phase III for winter environmental testing of its hybrid algae production facility in Montana.

The GSPI hybrid algae production system is designed to provide a controlled algae growing environment at an affordable capital and maintenance cost, which has eluded engineers for more than three decades.

The GSPI system endured severe Montana winter conditions, which included many nighttime temperatures below -18º Celsius (0º Fahrenheit) and snowfalls of up to 355 mm (14 inches).
The 40,000 liter demonstration facility is located outdoors and had successfully completed Phase I and II of the project in mid-2007.

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The Oil Price Paradox

from Newsweek
By David G. Victor Special Guest Columnist

Last week brought fresh evidence that the U.S. economy is slowing and may have slipped into recession. The news has not only dimmed expectations for world economic growth, but it has also hammered oil prices, which lost $15 from the $100 high just a month earlier. A year ago, more bullish thoughts lifted oil prices from the $50 level in January 2007. The question on policymakers' lips is whether a worldwide slowdown will bring an end to the boom in demand for oil and drive prices significantly lower. Although oil prices will eventually drop as new sources come online and biofuels and other alternatives take hold, crude price are likely to remain high and volatile for a while.

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Missouri Governor, Assembly promote B5 standard

from The Standard Democrat (Sikeston, MO)
By Michelle Felter

LILBOURN — Thanks to a push from the Governor and the General Assembly, biodiesel producers in Missouri may soon have a guaranteed market for their product.

“It will certainly be helpful — anything that is going to make more demand for the biodiesel product will help the producers,” said Stan Polivick, general manager of the Great River Soy Processing Cooperative in Lilbourn.

In a recent State of the State address, Gov. Matt Blunt offered support to the creation of a 5 percent diesel standard, which means that all diesel fuel sold in the state will contain a 5 percent blend of biodiesel, when it is the same price or less than conventional diesel fuel.

“The bottom line is that Gov. Blunt wants to increase access to renewable fuels in our state,” said Jessica Robinson, a spokeswoman for the governor. Something that’s hurting the industry right now is the low demand, said Polivick — partially due to a lack of awareness, as well a scarcity of locations that sell biodiesel.

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Algae association forms to advance biodiesel production

By Hope Deutscher


The National Algae Association, which recently opened its headquarters in Houston, is providing a new forum for researchers, producers and investors to advance the discussion and production of algae as a renewable energy source.

The association, which is in the formation stages, was founded by Barry Cohen of Biofuel Capital Partners, a private equity fund for biodiesel and other biofuels-related technology and production companies. Cohen said biodiesel producers, who are facing problems as a result of high soybean and vegetable oil feedstock costs, are looking to alternative feedstocks, such as algae. "We’ve got biodiesel producers that are contacting us every single day because they know they’ve got a problem, so by putting this together, we’re bringing the researchers together. We’re bringing the algae production companies together so that we can share information and exchange ideas. From that, we are pushing the commercialization of algae.”

Algae can grow in ponds or tubes, and are considered a low-cost, high-yield feedstock. Up until now, researchers were researching algae production, but there was no motivation to commercialize it, Cohen said.

Since the association was created, Cohen said his phone has been ringing and his mailbox has been full. "People are asking me, 'Where can I buy algae feedstock from?' but there are currently limited quantities of algae feedstock available," he said. “This is sort of a new round of lower-cost, nonedible feedstock. Algae is not edible. We’re talking about something that can be grown and turned into algae oil, and we have companies that have been contacting us about setting up production plants in Texas and other areas of the country.”

Wisconsin "Blueprint for Action" issued to combat climate change

Wisconsin Environment issues report outlining policy steps required to reduce carbon emissions
Posted by Jeff Pieterick, President, Wisconsin Biodiesel Association

Citing global warming as "a serious threat to Wisconsin’s future wellbeing and prosperity," Wisconsin Environment has released A Blueprint for Action: Policy Options to Reduce Wisconsin's Contribution to Global Warming

This environmental group has identified global warming as being among its top priorities in confronting issues that affect the world we live in. With a sense of urgency, Wisconsin Environment points out that "immediate action is needed to prevent the worst impacts of global warming. Scientists tell us that if we act quickly and aggressively to reduce global warming emissions there is a much greater chance of staving off the worst impacts of global warming."

In their report (Executive Summary available here) Wisconsin Environment applauds the efforts undertaken so far in Wisconsin to reduce our carbon emissions. Yet, they point out that Wisconsin's emissions of global warming gases continue to increase. The report offers a blueprint that includes 13 substantial policy steps that could help reverse this trend as required to do our part in effectively addressing this threat to our environment.

The significant impact of the transportation fuels sector of our energy market is well considered in this report. The Wisconsin biodiesel industry therefore has an important role to play in promoting the policy changes outlined therein.

Biodiesel has potential to contribute greatly to this effort, but only if it maintains a focus on sustainability in both its feedstock procurement and its production methods. Look to The Wisconsin Biodiesel News webpage for continual updates of research and industry developments that further enhance biodiesel's ability to address this most important issue of global climate change.

The Wisconsin Biodiesel Association joins with Wisconsin Environment and others in acknowledging the threat posed by increased carbon emissions. Biodiesel provides an immediate solution in reducing our carbon footprint, but much work is required going forward to increase the potential positive impact this industry can provide. It remains important, therefore, for the biodiesel industry to commit effort toward increasing its carbon efficiencies as it expands to supplant more and more of our distillate fuel requirement. It is the potential environmental benefits provided by biodiesel, after all, that truly establishes it as "Home Grown Fuel for a Better Wisconsin."

RENEW Energy making ethanol in Jefferson

Tour for corn growers features state-of-the-art technologies on display at brownfield site of new ethanol plant
As reported by Gloria Hafemeister for the Watertown Daily Times

JEFFERSON - When about 100 corn producers from southeastern Wisconsin toured Renew Energy's ethanol plant at Jefferson this week they saw a huge, state-of-the art facility that includes four new technologies.

Scott Busch guided the tour, showing how the high-efficiency, environmentally friendly plant produces ethanol from corn that has first been fractionated - broken down into starch, bran and germ.

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The RENEW Energy ethanol plant in Jefferson is constructed on the abandoned site of a Ladish Company malting operation that had previously been a major employer in Jefferson County. RENEW Energy currently has 70 employees at their state-of-the-art facility.

Rumormill: Mercedes AMG experimenting with diesel performance

from AutoBlogGreen

The terms "performance" and "diesel" used to be mutually exclusive, but times, they are a-changin'. Audi's dominance of LeMans with its R10 TDI and the recent unveiling of the R8 V12 TDI concept might be giving Mercedes a reason to turn towards oilburners for some of its high-po offerings.

AMG has made a name for itself by providing, among other things, torque-rich engines that sometimes have to be electronically limited due to their tire (and differential) decimating potential. AutoExpress supposedly has it on good authority that plans are in the works to offer diesel models with an AMG badge, but both Mercedes and AE failed to provide any details about what vehicles or engines would be used. It might be a forgone conclusion that new CAFE standards in the U.S. are causing automakers to rethink their performance offerings, but in the meantime, we're going to throw this in the rumormill and see what comes out the other end.

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Xethanol announces sale of Georgia, North Carolina facilities

Company stock may be delisted from AMEX following setbacks in cellulosic ethanol plans

By Sarah Smith


Shares of Xethanol Corp. fell more than 10 percent upon news that the renewable energy company was scrapping plans to develop two proposed cellulosic ethanol facilities and was losing money on its only operational plant in Iowa. The embattled company may be in jeopardy of being delisted from the American Stock Exchange, according to exchange rules.

Xethanol announced at its annual shareholder meeting Jan. 22 that it would sell the site it purchased two years ago in Augusta, Ga., to build corn-based and cellulosic ethanol facilities. When it announced the purchase of the former Pfizer Inc., pharmaceutical plant, it said the 35 MMgy cellulosic plant would come on line in 2007. Production hadn't begun when Xethanol announced that the plant, which would also accommodate some corn-based feedstock, would expand capacity to 50 MMgy. The company hasn't produced any ethanol on the site.

Xethanol’s U.S. Securities and Exchange Commission filing also indicated that plans for a similar facility in Spring Hope, N.C., would be scrapped to save additional money. The company reported that it had lost $1.3 million in the fourth quarter of 2007. A small corn-based ethanol plant in Blairstown, Iowa, "is running at approximately 5.6 [MMgy] ... and is operating at a loss,” the shareholder report stated.

Governor Doyle highlights Renewable Energy & Biofuels in State-of-the-State Address

Policy objectives outlined to invest in renewable energy and increase distribution of biofuels.

(MADISON, WI) Governor Doyle presented his State of the State Address on Wednesday before both Houses of the Wisconsin Legislature. A key element of Doyle's plans for future growth in the Wisconsin economy looks to further development of our renewable energy industry.

Click here for a list of the Renewable Energy initiatives contained in the Governor's plan as provided by the Office of the Governor and the Wisconsin Office of Energy Independence.

Click here for a full text of the Governor's State of the State Address.

GM gains orders for over 1700 additional Diesel/Electric Hybrid Buses

Twin Cities to receive 300 hybrids in recent market surge that nearly doubles GM sales
from AutoBlogGreen

The pace of orders for GM's two-mode hybrid buses is picking up steam. At the Washington DC Auto Show, General Motors has announced orders for an additional 1,732 GM-Allison diesel-electric transit buses. With the 1,000 Two-Mode bus being delivered to Las Vegas this month, the new orders will more than double the fleet since they first hit the road in 2003. The Washington Metro Transit Authority has placed the largest single order to date for 952 buses. The Southeastern Pennsylvania Transportation Authority's has ordered for 480 buses and Minneapolis/St. Paul Metro Transit wants another 300. To date the buses on the road have accumulated 55 million miles with no battery failures.

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Subaru launches 2.0L diesel Outback/Legacy wagon in the UK with 41mpg

Diesel option to be made available in US market by mid-2010
from AutoBlogGreen

Almost a year after announcing their new diesel boxer engine at the 2007 Geneva Motor Show, Subaru has finally put it on sale in the UK. The Outback and the Legacy Sports Tourer (aka station wagons) go on sale in February in the the UK with a 2.0L horizontally-opposed four-cylinder diesel engine. This apparently is the first diesel engine of this configuration ever installed in a production passenger car.

The new plant is rated at 150hp and 258 lb-ft of torque with an impressive 41.3 mpg (U.S.). That's better than either the Mondeo or Passat diesel wagons and the Subaru has all wheel drive. The Legacy wagon gets from 0-60mph in a respectable 8.5 seconds, even with this impressive mileage. The diesel engine is also 2.4 inches shorter than Subaru's 2.0L gas engine thanks to smaller cylinder bore spacing.

We can expect to see this engine appear in the U.S. market under the hood of the Forester and Imprezza in mid-2010.

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WSJ: Biodiesel sustainability & US tax credits targeted by EU

Sets standard for biofuels at 35% carbon reduction in swipe at Asian imports made from palm

By JOHN W. MILLER in Brussels and TOM WRIGHT in Jakarta, Indonesia
January 23, 2008; Page A11


The European Union will move today to protect its ailing transport-biofuels industry from foreign imports with measures that would force companies to show their fuels are helping the environment more than they are hurting it, according to documents seen by The Wall Street Journal.

The biggest losers are expected to be companies in Southeast Asia that make biofuels out of oil palms they have planted after cutting down forests. Trees soak up carbon dioxide; felling them blunts the benefit of cleaner-burning fuels made from oil palms.

Separately, the EU is preparing punitive tariffs on biofuel imports from the U.S. if Washington doesn't remove a tax credit for some American biofuels exporters, according to EU officials.

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NYT: Food vs Fuel; Sustainability are issues affecting biofuels production

Posted by Jeff Pieterick, President, Wisconsin Biodiesel Association

"The growth of biodiesel, which can be mixed with regular diesel, has been controversial, not only because it competes with food uses of oil but also because of environmental concerns. European conservation groups have been warning that tropical forests are being leveled to make way for oil palm plantations, destroying habitat for orangutans and Sumatran rhinoceroses while also releasing greenhouse gases."

In the first of a series of articles published exploring The FoodChain, the New York Times presented an article on Saturday titled "New, Global Oil Quandary: Costly Fuel Means Costly Calories". The controversies it illuminates relative to the impact of worldwide biofuels production are substantial and worthy of consideration.

The concerns expressed about biofuels production fall within two categories:

1. Food versus Fuel: Ethanol and biodiesel production presently rely primarily upon corn and edible oils (respectively) for their feedstock. Meanwhile, worldwide demand for these food commodities is growing at an incredible rate, particularly in developing economies such as in China and India. In competing with the food industry for these commodities, the biofuels industry is therefore contributing to higher food prices with potentially drastic consequences as explained in the NYT article.


2. Sustainability: In developing countries such as Malaysia, the Phillipines, and many South American and African nations, rain forests are being cleared to establish palm and jatropha plantations in an effort to meet the rising demand for oils to be used both by the food industry and for biofuels production. The primary justification for the pursuit of biofuels is to achieve a carbon-neutral alternative to fossil fuels. Yet, the net carbon-benefit of these fuels is greatly compromised if rain forests - which serve as highly efficient carbon sinks - are sacrificed to create acreage for oil production.

The first proponents and most diligent advocates for biofuels were the farmers and other ag interests in the US and Europe who saw this as the means to create a market for their surplus products. Corn and edible oils, which are a co-product of soybean (US) and rapeseed (Europe) processing that creates meal for animal feed and for human consumption, were historically undervalued as surplus commodities looking for a market. As the biofuels industry began to gain traction, the projected demand for these oils and corn quickly outstripped supply. The commodity traders now price these oils at nearly triple the value at which they were traded as recently as 2006, and corn itself commands near-record high prices even as yields greatly increase.

Value added ag? You bet! But as the NYT article shows, the dramatic swing to the plus side in the value of these commodities is not without its downside for food consumers throughout the world. There is considerable pushback, therefore, to the supposed benefit of supporting any greater growth of the biofuels industry solely on the basis of providing increased "value-added" support for our ag producers.

The biofuels industry instead needs to continue research and development of alternative feedstocks that will not compete directly with our food supply. In addition, effort is required to assure that these feedstocks are produced in a way that does not in itself contribute to global climate change. The European Union is considering taking steps to limit the import of biofuels that are compromised in the carbon efficiency of their production. Such steps serve notice to the biofuels industry of the need to take all steps necessary in maximizing the benefit of harvesting renewable energy for a sustainable future for us all.

Feedstock research: pennycress in winter rotation for biodiesel

Pennycress is a weed that researchers think has the potential to quell the food versus fuel debate. If initial findings prove true, it could become a biodiesel feedstock that doesn’t compete with corn and soybeans for acres.
By Susanne Retka Schill



Researchers in Illinois believe they have the answer to the continuing food versus fuel debate and high commodity prices that challenge the biodiesel industry: pennycress. Their excitement stems from the ability of the plant to be transformed from a weed into a biodiesel feedstock. “It’s off season from corn and soybeans, has high seed yield and high oil,” says Terry Isbell, lead researcher in the new crops and processing technology group at the National Center for Agricultural Utilization Research at Peoria, Ill. “This plant wants somebody to pay attention to it.”

Field pennycress may be a new crop in development, but it’s an old weed. Thlaspi arvense is a winter annual weed known by farmers under several names—field pennycress, stinkweed, frenchweed—that grows widely across the Midwest. It isn’t considered a big weed problem because it completes its life cycle in late spring and doesn’t compete with newly planted corn or soybeans. Pennycress is a member of the mustard family. Its heart-shaped, flat seed packets carry the tiny oilseed that yields 36 percent oil when crushed. That kind of oil yield, plus seed yields in wild stands that approach 2,000 pounds per acre, make pennycress comparable with canola as an oilseed crop. Isbell almost didn’t notice those traits, however, when he initially tested pennycress oil six years ago.

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Safeway Upgrades to B20 Biodiesel

B20 for over 1000 trucks, including 420 trucks in Chicago's Dominick's fleet
from Food and Fuel America

The supermarket chain Safeway announced this week in Denver that it is converting its entire truck fleet to the cleaner burning fuel Biodiesel.

The company is switching over its entire nationwide fleet to B20, a biodiesel blend of 20 percent biodiesel and 80 petroleum diesel. The company had already converted some of its fleet in California and Arizona.

Safeway claims converting its entire fleet will do away with 75 million tons of carbon emissions. That's the about the same as removing 7,400 cars off the nation's highways.

Colorado Gov. Bill Ritter applauded Safeway's conversion of its national trucking fleet to cleaner-burning biodiesel.

"The future of our country depends on the private sector and companies like Safeway demonstrating leadership around how we consume energy"

The governor went on to explain that Safeway's conversion of its truck fleet was a great example of private industry taking a sustainable approach that's good for our economic security, our environmental security and our energy security.

Biodiesel Magazine: Pieterick writes on "Growing Pains" in the Biodiesel Industry

WBA President Jeff Pieterick addresses the growing pains in the biodiesel industry in the February issue of Biodiesel Magazine.

You can access other essays by Pieterick on this and other industry topics in our web pages at the Wisconsin Biodiesel Report , the Wisconsin Biodiesel News, and our home website at www.wibiodiesel.org/.

Alberta Premier seeks help from US in extracting oil from tar sands

“Oil from the tar sands is about our energy past, not our future. Political and business leaders who want to fight global warming should be concerned about expanding U.S. imports of tar sands fuel.” - Liz Barratt-Brown, a senior attorney at the Natural Resources Defense Council (NRDC).
As reported in All American Patriots.com

Washington (January 16, 2008) -- Alberta Premier Ed Stelmach is on a trade mission to Washington, D.C., today where he is expected to seek American support for, and investment in, one of the dirtiest sources of unconventional fuels – the Canadian tar sands. Tar sands oil production generates almost three times the global warming emissions as conventional oil production, due to the massive amounts of energy needed to extract, upgrade and refine the oil.

“Oil from the tar sands is about our energy past, not our future. Political and business leaders who want to fight global warming should be concerned about expanding U.S. imports of tar sands fuel,” said Liz Barratt-Brown, a senior attorney at the Natural Resources Defense Council (NRDC). “The U.S. should not rely on a dirty fuel that results in the destruction of Canada's biologically rich boreal forest for tar sands mining and drilling.”

Concern about tar sands fuel is growing in the United States. Last summer, British Petroleum (BP) was forced to table expansion plans to take more tar sands oil at its Whiting, Indiana, refinery after concerns about added pollution in Lake Michigan were made known to the public. Opposition is growing around plans to build the first new refinery in 30 years in South Dakota, a new 1,800 mile trans-boundary pipeline from the tar sands to the Midwest, and proposed expansions of many of the refineries in that region. Last week, NRDC asked the airline industry to publicly oppose the use of fuel made from highly polluting sources,including tar sands, and called on the companies to join a campaign seeking increased investment in cleaner fuels throughout the airline industry.

“Canada risks becoming an international pariah for promoting the tar sands instead of joining the fight against climate change” said Tzeporah Berman of ForestEthics in Canada. “The bottom line is Stelmach should put the brakes on tar sands expansion and address the rising environmental and social concerns instead of running around Washington like an oil salesman.”

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Brazil implements B2 standard

As reported by Cleantech
January 2, 2008
Starting this month, all diesel in the country is required to contain 2 percent biodiesel.

Brazil has put a new renewable fuels standard into effect for 2008, requiring all diesel used in the country to contain 2 percent biodiesel.

The announcement was made by Mines and Energy minister Nelson Hubner, who said the regulation would reduce carbon gas emissions.

Hubner said there should be enough biodiesel to meet the demand, but said there could be initial delivery problems in remote parts of the country.

The minister said 800 million liters of biodiesel will be needed annually to meet the new requirement. He said Brazil already has the capacity to produce more than three times that amount.

Brazil primarily uses soybeans as a feedstock for its biodiesel, with castor seeds, sunflower seeds and palm fruits also being used.

The country, which is poised to edge out the U.S. as the world's No. 1 producer of ethanol, plans to increase the biodiesel regulations to require a 5 percent blend by 2013.

EU Ambassador registers complaint about US biodiesel subidies; splash-and-dash

from Official Export Guide

On January 14, Ambassador John Bruton, Head of the European Union (EU) Commission Delegation to the United States, said that he was disappointed at the failed efforts of the United States to end anti-competitive U.S. biodiesel blending subsidies, which threaten the European biodiesel industry and leave U.S. taxpayers subsidizing European motorists.

“The European biodiesel industry is being threatened by a flood of subsidized US biodiesel. It is estimated that around 1 million tons of biodiesel entered the EU from the US in 2007, roughly 15-20% of the EU biodiesel market and a tenfold increase over 2006, Ambassador Bruton said. “American tax credits allow US producers and others — who are eligible for European support as well — to unfairly undercut their competitors in the EU.”

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MO Gov. Blunt calls for B5 Standard

from Domestic Fuel

Missouri Governor Matt Blunt wants a 5 percent biodiesel standard for his state.

In his State of the State address before the Missouri House of Representatives, Blunt called on lawmakers to approve the standard:

"To further grow alternative fuel production, I support a B5 standard for biodiesel sold in our state. Biodiesel from soybeans has proven much more environmentally-friendly and better for air quality than regular diesel. Research has shown that it cuts carbon dioxide and cancer-causing emissions by more than 75 percent. Adopting a B5 standard will reduce particulate matter emissions by 15.4 million pounds and carbon monoxide emissions by 168 million pounds. A B5 standard will improve our air quality and makes sense for Missouri."

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Stu Ellis: "$5 Corn, $15 Beans, But When Do You Sell?"

Respected Ag Economist Stu Ellis looks at the historically high prices for corn and beans and offers his perspective on the market for crop producers. You can access his Farmgate Blog report by clicking here.

Pennsylvania company pioneers new crush/biodiesel technology

CO2 replaces Hexane; Claims 14% reduction in cost of producing biofuel
Tuesday, January 15, 2008
By Elwin Green, Pittsburgh Post-Gazette

A local technology company has received a federal grant of $1.9 million for the development of a biodiesel production process that promises to be cheaper, more efficient and more flexible than processes now used.

Harmarville-based Thar Technologies Inc. received the grant, from the National Institute of Science and Technology, to further its research in using highly pressurized carbon dioxide to extract biodiesel from feedstock.

Thar President and Chief Executive Officer Lalit Chorida said that to date, biodiesel production has been a two-stage process -- first, hexane is used to extract vegetable oil from oilseed, then the vegetable oil is converted to biodiesel.

In Thar's proposed single-stage process, carbon dioxide replaces hexane, a toxic solvent,
Mr. Chordia said that besides being non-polluting, the new process will use 25 percent less energy to produce the same amount of fuel, and will be 14 percent less expensive, a combination of higher efficiency and lower cost that would make biodiesel production economical even without government subsidies.

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House Ag Committee Chair says cellulosic ethanol a decade away

Feedstock sources; Distribution networks require development to make a successful transition to biofuels


By Tom Doggett

WASHINGTON (Reuters) - It will be at least a decade before technological breakthroughs allow ethanol fuel to be produced commercially from farm and forest waste like wood chips, switchgrass and corn stalks, the chairman of the House Agriculture Committee said on Tuesday.

The Bush administration has a much quicker 2012 target date for moving U.S. ethanol production away from its current main feedstock -- corn -- to cheaper agricultural waste and other so-called cellulosic sources.

However, Rep. Collin Peterson said that goal probably won't be met.

"I think that is optimistic. I think we are 10 years away," said Peterson, speaking at the Reuters Global Agriculture and Biofuel Summit.

"I really think the more I look at this whole cellulosic issue, there is a lot bigger problem to overcome here than people realize in terms of the feedstocks. We have a lot of work to do in that regard," he said. "I'm not sure cellulosic ethanol will ever get off the ground."

A new energy law requires U.S. ethanol production to increase from 9 billion gallons this year to 36 billion gallons by 2022.

Peterson said with more ethanol plants coming online, the one thing he knows for sure is more pipelines will be needed to move the fuel supplies.

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Investor sees carbon law fueling greentech boom

By Eric Auchard and Nichola Groom

MENLO PARK, California (Reuters) - U.S. legislation to control greenhouse gas emissions would make renewable energy sources competitive with conventional fuels "overnight," a top Silicon Valley venture capital firm said on Tuesday.

Policies to control emissions of carbon dioxide, a gas associated with global warming, would "instantly make any green tech solution more cost-competitive with fossil-based competitors," said Kleiner Perkins Caufield & Byers Partner John Denniston. "Overnight that will happen."

"If we legislatively put a price on carbon... that would be a watershed event in the energy world," Denniston told the Reuters Global Agriculture and Biofuels Summit at his firm's headquarters in Menlo Park.

"It would send a signal to the entire world that the United States understands that climate change is a crisis, and it would be a rallying cry for the rest of the world to work with the U.S," Denniston said.

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Algae for Biodiesel: BusinessWeek calls it "Pond Scum Power"

BusinessWeek published an overview of efforts to commercialize algae production in the creation of a renewable and sustainable feedstock for biodiesel. Click here to access the article.

In addition, the University of Minnesota has announced that Xcel Energy has pledged $150,000 to assist in funding an algae-to-biodiesel research project sponsored by the University and the Metropolitan Council.