Posted March 15, 2010, at 8:15 a.m. CST
 
 Agriculture Secretary Tom Vilsack announced March 12 that Fiscal Year 2009 funding is available again through three USDA programs to promote increased production of biofuel and bioenergy. The programs are authorized under the Food, Conservation and Energy Act of 2008 (Farm Bill). 
 
 • Applications for remaining FY 2009 funding under the Biorefinery Assistance Program (Section 9003), which uses loan guarantees to develop, construct, and retrofit commercial-scale biorefineries, must be received by June 1, 2010.
 
 • Applications are also being accepted for remaining FY 2009 funding under the Repowering Assistance Program (Section 9004), which provides for payments to biorefineries (that were in existence when the Farm Bill was passed) to replace the use of fossil fuels in their operations with renewable energy from biomass. Biorefineries interested in obtaining funding must apply by June 15, 2010.
 
 • Those producers eligible under the Bioenergy Program for Advanced Biofuels (Section 9005) may also apply to receive payment from remaining FY 2009 funds. Applications must be received by May 30, 2010. During the first round, the Department awarded funding to 123 recipients in 34 states to 
 accelerate the production and usage of advanced biofuels. 
 
 "The Obama Administration is working aggressively to give our nation's rural communities, farmers, ranchers and producers of biofuels the financial tools they need to help bring greater energy independence to America," Vilsack said. "This funding will help the nation's advanced biofuel industry produce energy from sustainable rural resources, and in doing so create jobs and stimulate rural economies across the nation." 
 
 Under Section 9005, the Bioenergy Program for Advanced Biofuels, payments are made to eligible producers in rural areas to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat. Information on how to apply for payments can be found in the March 12, Federal Register. Information on how to apply for funding under Sections 9003 and 9004 is also available in the March 12 Federal Register or by going to <a href="http://www.access.gpo.gov/su_docs/aces/fr-cont.html#Rural%20Business-Cooperative%20Service">http://www.access.gpo.gov/su_docs/aces/fr-cont.html#Rural%20Business-Cooperative%20Service</a>. Funding for these programs is not provided through the American Recovery and Reinvestment Act. 
 
 The producer payments are intended to help eligible producers to support and ensure an expanded production of advanced biofuels necessary steps toward meeting the nation's energy needs. The following is a list of biofuels producers that have already received funding under USDA's Bioenergy Program for Advanced Biofuels. Recipients of payments less than $500 are not listed. 
 
 Alabama 
 •	Athens Biodiesel, LLC, $2,262.11
 Arizona 
 •	Pinal Energy, LLC, $1,337,529.99
 Arkansas 
 •	FutureFuels Chemical Company, $544,785.84
 •	Pinnacle Biofuels, Inc., $20,085.18
 California 
 •	Energy Alternative Solutions, Inc., $4,269.21
 •	Imperial Valley Biodiesel, LLC, $1,999.57
 •	Imperial Western Products, Inc. $55,105.91
 •	Yokayo Biofuels, Inc., $8,308.57
 Florida 
 •	Agri-Source Fuels, LLC, $7,103.50
 •	Biofuel Consultants of North America, $2,004.77
 Georgia 
 •	Alterra Bioenergy of Middle Georgia LLC, $530.98
 •	Down To Earth Energy LLC, $1,062.62
 •	Nittany Biodiesel, $196,949.91
 •	The Edge Group, Inc., $8,167.17
 •	U.S. Biofuels Inc., $106,208.25
 •	American Proteins, Inc., $32,935.57 
 Hawaii 
 •	Pacific Biodiesel, Inc., $8,655.92
 Idaho 
 •	Coeur D'alene Fiber Fuels, Inc., $203,769.40
 Illinois 
 •	Blackhawk Biofuels, LLC, $258,309.90
 •	Nova Biosource Fuels, Inc., $239,740.09
 •	Valley Energy, Inc., $4,717.00
 Indiana 
 •	E Biofuels LLC, $165,980.73
 •	Indiana Flex Fuels, LLC, $5,164.00
 •	Kingsbury Energy Group, $17,861.00
 •	T and M Limited Partnership, $30,702.24
 Iowa 
 •	Central Iowa Energy, LLC, $114,239.69
 •	Iowa Renewable Energy, LLC, $216,592.82
 •	Maple River Energy, LLC, $9,742.32 
 •	Renewable Energy Group, Inc., $727,132.93
 •	Riksch Biofuels LLC, $10,401.22
 •	Sioux Biochemical, Inc., $13,961.87 
 •	Western Dubuque Biodiesel, LLC, $253,695.87 
 •	Western Iowa Energy, $298,475.92
 Kansas 
 •	Arkalon Ethanol, LLC, $663,270.50
 •	Bonanza Bioenergy, LLC, $266,261.11
 •	East Kansas Agri-Energy LLC, $34,500.65
 •	Emergent Green Energy, Inc., $1,700.79
 •	ESE Alcohol, $17,688.56
 •	Healy Biodiesel, Inc., $5,281.14
 •	Kansas Ethanol, LLC, $690,080.67
 •	Nesika Energy, LLC, $104,104.40
 •	Prairie Horizon Agri-Energy, LLC, $ 824,692.23
 •	Reeve Agri Energy Inc., $150,398.26
 •	Trenton Agri Products LLC, $130,867.50
 •	Western Plains Energy LLC, $848,999.36
 Kentucky 
 •	Griffin Industries, Inc., $17,278.36
 Maine 
 •	Corinth Wood Pellets, LLC, $176,855.44 
 •	Maine Woods Pellet Company, LLC, $231,291.84
 Michigan 
 •	Hillside Farms, LLC, $793.50
 •	Michigan Biodiesel, LLC, $1, 372.22 
 •	Scenic View Dairy, LLC, $10,219.43
 Minnesota 
 •	Cargill Inc., $269,307.51
 •	Chippewa Valley Ethanol Coop LLP, $8,560.08 
 •	Corn Plus LP, $182,421.73
 •	Fumpa Biofuels, $25,793.57
 •	MN Soybean Processo, $565,695.38
 •	Riverview LLP, $3,993.54
 •	West River Dairy, LLP, $4,874.74
 Mississippi 
 •	Greenlight Biofuels, $18,732.10
 •	Scott Petroleum Corporation, $106,190.64
 Missouri 
 •	Global Fuels LLC, $13,748.25
 •	Mid-America Biofuels, LLC, $538,101.79
 •	Natural Biodiesel Plant LLC, $26,909.55
 •	Prairie Pride, Inc., $133,712.70
 •	Show Me Energy Cooperative, $35,813.38
 Montana 
 •	Earl Fisher Bio Fuels LLP, $586.66
 •	Huls Dairy, Inc., $1,041.68
 Nebraska 
 •	AG Processing Inc., $120,115.61
 •	Chief Ethanol Fuel Inc., $1,345,588.16 
 •	Northeast Nebraska Biodiesel, LLC, $9,264.65
 Nevada 
 •	Bently Biofuels Company, $2,144.76
 New York 
 •	MST Production, LTD, $82,410.75
 •	TMT Biofuels LLC, $1,728.06
 North Carolina 
 •	North American Bio-Energies, $4,149.60
 •	Piedmont Biofuels Industrial, LLC, $7,710.29
 •	Triangle Biofuels Industries, Inc., $9,148.67
 North Dakota 
 •	Archer Daniels Midland Company, $385,062.16
 Ohio 
 •	American AG Fuels, LLC, $923.99 
 •	Arlington Energy, LLC, $1,699.77
 •	Bridgewater Dairy, LLC, $2,028.39
 Oklahoma 
 •	Ecogy Biofuels LLC, $85,057.55
 •	High Plains Bioenergy, LLC, $329,457.85
 Oregon 
 •	Green Fuels of Oregon, $643.33
 •	Stahlbush Island Farms, Inc., $735.50
 Pennsylvania 
 •	Middletown Biofuels LLC, $17,510.92
 •	Soy Energy, Inc. dba Custom Fuels, Inc., $3,382.39
 Tennessee 
 •	SunSoil, LLC, $2,811.54
 Texas 
 •	Beacon Energy (Texas) Corporation, $69,453.37
 •	Double Diamond Energy, Inc., $8,711.97
 •	New Energy Fuels, LLC, $5,424.50
 •	Levelland/Hockley County Ethanol, LLC, $432,305.71
 •	Texas Green Manufacturing LLC, $558.14
 Vermont 
 •	Audet's Cow Power, LLC, $757.59
 •	Berkshire Cow Power, LLC, $2,107.69
 •	David and Cathy Montagne, $586.29
 •	Green Mountain Dairy LLC, $918.17
 Virginia 
 •	Chesapeake Custom Chemical Corporation, $12,438.66
 •	Red Birch Energy, $6,583.85
 •	Virginia Biodiesel Refinery LLC, $23,341.53
 Washington 
 •	Farm Power Rexville LLC, $1,115.41
 •	FPE Renewables, LLC, $6,987.32
 •	GDR Power LLC, $16,162.98
 •	Imperium Grays Harbor LLC, $195,671.27
 •	Inland Empire Oilseeds LLC, $8,012.82
 •	Qualco Energy, $1,558.79
 •	Standard Biodiesel USA Inc., $3,219.96
 •	Whole Energy Fuels Corporation, $10,661.75
 Wisconsin 
 •	Badger Biodiesel, Inc., $193,237.25
 •	Best Biodiesel Cashton, LLC, $6,149.62
 •	Bio Blend Fuels, $1,976.11
 •	Buckeye Ridge Renewable Power LLC, $10,518.57
 •	Clover Hill Dairy, LLC, $1,371.50
 •	Green Valley Dairy LLC, $5,733.51
 •	Grotegut Dairy Farm, Inc., $1,066.92
 •	Holsum Dairies, LLC, $6,891.98
 •	Norm E Lane, Inc., $2,264.82
 •	Norswiss Digester, LLC, $11,535.15
 •	Pagel's Ponderosa Dairy, LLC, $2,045.72
 •	Quantum Dairy, LLC, $1,718.79
 •	Stargest Power, LLC, $11,636.27
 •	Statz Brothers, Inc., $1,464.80
 •	Walsh Bio Fuels, LLC, $6,656.94
 •	Sun Power Biodiesel, LLC, $9,050.39
 
 USDA, through its Rural Development mission area, administers and manages more than 40 housing, business, and community infrastructure and facility programs through a network of 6,100 employees located in 500 national, state and local offices. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. Rural Development has an existing portfolio of more than $130 billion in loans and loan guarantees. 
 
 SOURCE: USDA

USDA funds available for biofuel, bioenergy production

Posted March 15, 2010, at 1:24 p.m. CST
 
 The University of Toronto will use a portion of an $8.2 million award from the Ontario Research Fund's Research Excellence Program to develop a bark biorefinery that will produce green adhesives and biobased foams from tree bark.
 	
 Associate Professor of Forestry Ning Yan and Professor Mohini Sain are leading a multidisciplinary team in developing the innovative process. "We will be using extraction, separation and purification for turning barks into adhesives," Yan said, adding that hydroxylation will convert the bark biomass to biobased foam. "The biobased foam with controlled foam structure can be used in building, construction and automotive industries as more environmentally sound alternatives for traditional petroleum-derived foam products," she said.
 	
 The team is in the early phases of project development, focusing on fundamental research and bench-scale technology development for intellectual property generation, which is crucial for scale-up and demonstration efforts, according to Yan. The team aims to have some products ready for pilot trials in four to five years with the help of its partners: FPInnovations, a forest bio-economy development company; the Woodbridge Group, a foam technology provider; Huntsman Corp., a differentiated chemicals manufacturer and marketer; Arclin, a provider of bonding and surfacing solutions; St. Marys Paper Corp., a paper mill; Tembec Inc., a paper company; and AbitibiBowater, which produces newsprint, commercial printing papers, market pulp and wood products. 
 	
 The process can use any bark, although compositional differences among the different species may make some candidates better for certain products, Yan said. "We are certainly very interested in Canadian species including bark from mountain pine beetle-infested trees."
 	
 The project received $1.75 million and could have significant impacts on forestry, along with the automotive and chemical industries, according to the university. "Bark contains other niche specialty chemicals that can have antimicrobial and neutraceutical/pharmaceutical applications," Yan said. 
 
 If the project proves successful, it would provide a method for converting a waste residue available in large quantities to commercially viable and value-added products with value-added market potential, Yan emphasized. It can be implemented in existing forestry operations to complement the product portfolio. "It also identifies another steam of waste nonfood biomass resources that can be utilized for bioproducts development, offering more options and easing some of the constraints due to demand on biomass feedstock," she said. "Further developing nonfood feedstock to high-value chemicals and functional materials is fundamental to this project."

U of Toronto researches bark biorefinery process

Posted March 22, 2010, at 12:34 p.m. CST
 
 Washington Gov. Christine Gregoire signed into law March 19 a bill that will help build a strong forest biomass industry within the state while mitigating overcrowded or fire-prone forests on state trust lands. 
 
 According to the Washington State Department of Natural Resources, there are approximately 3 million acres of state trust land in Washington. The Forest Biomass Supply Agreements Bill will allow the DNR to enter into long-term agreements to supply forest biomass from trust lands for energy projects/purposes. The bill goes hand-in-hand with HB 2165, which was passed in 2009 to authorize the DNR to implement forest biomass-to-energy pilot projects in eastern and western Washington. 
 
 Under the bill, rather than having to auction each timber sales' woody biomass waste on a sale-by-sale basis, the DNR will be authorized to provide five-year contracts with up to three renewals or leases for long-term biomass supply. 
 
 Following an invitation of proposals in the summer of 2009, in January, the DNR selected its first four partners for biomass pilot projects out of more than 30 interested parties. They include Parametrix, which plans to develop a transportable fast-pyrolysis system; Borgford Bioenergy LLC, which will build Kulzer BioEnergy Park in Stevens County to generate 9.5 megawatts (MW) of electricity, bio-oil, syngas and biochar; Atlas Pellets will produce pellets from the forest biomass; and Nippon Paper will replace an existing biomass boiler at its paper mill in Port Angeles, Wash., to produce 6 MW of excess power for sale to a power utility to help meet renewable energy requirements. 
 
 "We selected a group of projects that included a diverse mix of geography and technologies to help us to understand how to best create a forest biomass industry on state lands," said Aaron Toso of the Washington DNR Office of Commissioner of Public Lands. "The amount of material and duration of the contracts are a couple of the items we will be piloting." He said right now there are no plans to announce any other pilot projects this year. 
 
 The DNR will report to the state legislature in December 2010 on the progress and results of the pilot projects. It is currently pursing funding to initiate a statewide woody biomass investment-grade supply and accessibility study, which Toso said will help the DNR determine what is an ecologically sustainable amount of material that can be removed for green energy purposes. The DNR hopes to have a final report by 2011.

Washington passes forest biomass contract law

Posted March 9, 2010, at 10:25 a.m. CST
 	
 Texas-based Glycos Biotechnologies Inc. is producing lactic acid and advanced ethanol in a pilot commercial-size facility with the capacity to produce 150,000 liters of chemicals. It's a major benchmark in the company's quest to commercialize its microbial technology. 
 	
 The biochemical company is metabolically engineering microbial strains to consume nonsugar-based, low-value feedstocks for the production of chemicals and advanced ethanol. Those feedstocks can include multiple waste streams, such as glycerin from the oleochemicals industry or free fatty acids, according to GlycosBio CEO Rich Cilento. So many biochemical companies focus on sugar-based feedstocks that they build fierce competition and can hurt each others' progress. "If a third of those companies are successful, it will really affect commodity prices for sugar," he said. "Sugar is obviously a very, very important global commodity." Not only does GylcosBio's strategy eliminate the risks of sugar-only feedstocks, but it also provides product flexibility and a larger addressable market opportunity for producers, according to the company. In addition, the technology platform is cost competitive with the petrochemical industry, while maintaining 45 percent to 55 percent gross margins from plant operations.
 
 Initially, GlycosBio used the common lab microbe E. coli in its process, but expanded its expertise and has been operating its pilot plant in Hempstead, Texas, since November 2009. "We have a portfolio of microorganisms, both E. coli and non-E. coli," Cilento said. "Our strategy is to have a number of microorganisms that can create a portfolio of biochemicals." The front end of the company's process, which includes the microbe, feedstock and fermentation, is the same for any end product, although the microbe or feedstock will differ. But separation from the fermentation broth differs depending on the desired end products, Cilento said. The resulting specialty chemicals can be used as building blocks for a wide range of applications including biodegradable and non-degradable plastics, as well as for surfactants and fuels, according to the company. 
 
 GlycosBio's strategy is to develop joint ventures with companies that produce waste streams compatible with its technology platform. Instead of licensing its process, GlycosBio will leverage the partners' expertise and integrate its own technology for a shared plant. "We produce it as a partnership and sell it as a partnership," Cilento said of the biochemical products. The company has established one partnership and another is close to finalization, but Cilento declined to release details. "We've been making a lot of progress, but we've been stealth," he said. About four other partnerships are in early stages of discussion and Cilento hopes to have six to 10 ventures active (under construction or operating) in the next 12 to 18 months. 
 
 "People are confident in investing in our technology," he said. "People with waste feedstocks are calling us and we're at a point where we're ready to help them make a product from their waste streams."

GlycosBio technology nears commercialization

There was a flurry of activity in the first week of February as the government released the proposed rule for the Biomass Crop Assistance Program, the final rule to implement the renewable fuels standard (RFS2) of 36 billion gallons by 2022, and the administration's Biofuels Interagency Working Group released its first report aimed at boosting biofuels production. 
 
 The RFS2 reduced the requirement for cellulosic ethanol from 100 million gallons to 6.5 million gallons, but the industry seemed to think that was a fair judgment as it is still in the early stages of development. 
 
 We at Biomass Magazine are still going through the 104-page proposed rule for the BCAP program but we encourage readers who have concerns to send their comments to the USDA. A copy of the rule and comment instructions can be found at www.fsa.usda.gov/bcap. 
 
 The biofuels working group report called "Growing America's Fuel" can be found at www.whitehouse.gov/sites/default/files/rss_viewer/growing_americas_fuels.PDF. The report outlines the steps the government needs to take to achieve the 36 billion gallon goal. It emphasizes the implementation of a supply chain systems approach that makes sure that the biofuels produced are compatible with our transportation fuels infrastructure, and it establishes lead agencies that will be responsible for each segment of that chain. Also in the report, is a proposal to create USDA Regional Feedstock Research Centers to "develop sustainable supply chain strategies and science-based implementation plans designed to accelerate biofuels feedstock production and reduce transaction costs to feedstock producers and biorefineries."
 
 All this activity came on the heels of President Barack Obama's State of the Union address in January where his commitment to renewable energy was clear when he talked about the need to encourage innovation. "Last year, we made the largest investment in basic research funding in history an investment that kills cancer cells but leaves healthy ones untouched," Obama said. "And no area is more ripe for such innovation than energy." Although he used advanced batteries and solar panels as examples, we in the industry know that biomass-based power is much more efficient.
 
 Obama also mentioned the need for continued investment in renewable fuels, which is crucial if we want to be able to commercially produce fuel from crop residue and energy crops, which is what this issue is all about. 
 
 In his address, the president also said one of his goals is to increase the amount of goods that the country exports. "Because the more products we make and sell to other countries, the more jobs we support right here in America," Obama said. "So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support 2 million jobs in America. To help meet this goal, we're launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security." I believe the biomass industry could help with this goal by shipping products such as wood chips, biomass pellets and torrified biomass and biomass-based chemicals and fertilizers to other countries.

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Federal Support for Biofuels Intensifies

Posted February 22, 2010, at 2:18 p.m. CST
 
 Biochar technology company Dynamotive Energy Systems Corp. and environmental research company BlueLeaf Inc. have completed the second round of field trials testing various effects of commercial-scale plantings of wood waste-derived biochar.
 
 For the past two years, the companies have investigated the effects of Dyanamotive's CQuest Biochar on certain basic physicochemical and biological soil and plant parameters, as well as the ability of biochar to retain moisture in the soil, the influence of biochar on crop and biomass yields, the influence of biochar on soil respiration, and the effects of a handling and application method of biochar on the soil at commercial farming test plots in Québec, Canada.
 
 The material used in the trials was produced in 2007 and kept in storage by Dynamotive until shipment to the trial site on May 16, 2008. The biochar was packaged at the production facility in 200-liter (55 gallon) steel drums, each containing approximately 55 kilograms (121 pounds) of biochar and shipped by truck to the farm trial site. 
 
 The biochar was distributed on the plots using a commercial lime spreader at a rate of 1.75 tons per acre, accounting for wind losses of fine material of about 30 percent. Last year's results showed a plant density increase of up to 41 percent using certain planting methods, with an overall average of a 24 percent plant density increase with biochar use, compared with the control plots. Among 2009 results was a 100 percent increase in biomass for a forage mixture, as well as increases in earthworm, nematode and mycorrhizal root colonization, which may suggest biochar could serve as a refuge for soil microbes.
 
 Other conclusions of the study included: 
 
 •Best management techniques such as wetting the material prior to handling must be developed because of large wind losses of the fine material.
 
 •Soybean and forage yields were improved, although forage quality was slightly lower when biochar was applied. In the case of soybeans, the yield increase was brought about by greater plant population density, and not greater seed production per plant. 
 
 •Biochar reduced total soil phosphorus content, which requires further investigation given the soil is considered phosphorus-saturated and management is critical in the ecosystem. 
 
 •The application of 1.75 tons per acre did not produce measurable increases in total soil carbon or soil respiration, but statistical analyses could not performed because of the lack of randomization and replication, therefore data must be considered preliminary and further field studies are required to fully understand the effects of biochar application on soils of this temperate region. The application rate used was low and greater rates along with different biochar materials must be tested.
 
 A copy of the full report may be accessed at <a href="http://www.dynamotive.com/assets/resources/BlueLeaf-Biochar-FT0809.pdf">http://www.dynamotive.com/assets/resources/BlueLeaf-Biochar-FT0809.pdf</a>.

Dynamotive, BlueLeaf complete two-year biochar trial

Congress is crafting a federal renewable electricity standard (RES) to help create new jobs in the renewable energy sector and help America reach energy independence. The Biomass Power Association is urging Congress to adopt a federal mandate for all states to produce at least 25 percent of their electricity from renewable sources such as biomass. It is time to create the legislative framework to move the U.S. away from foreign oil and other fossil fuels that have harmful effects on the environment, and create new green jobs in the process.
 
 The RES-Alliance for Jobs, a coalition of businesses and organizations that support the congressional enactment of a strong RES, recently commissioned an economic analysis of the impact of a national RES of 25 percent. The Navigant study, released in February, concluded that a 25 percent RES by 2025 would result in the creation of an additional 274,000 renewable energy jobs nationwide and a cumulative 2.36 million job years of work. 
 
 The Navigant study is the first comprehensive analysis of potential jobs created specifically in the biomass power industry. For years, the southeastern region of the U.S. has resisted any type of renewable energy mandate because many southeastern states lack the wind and solar power necessary to meet those goals. According to the study, however, the southeast region has the opportunity to create hundreds of thousands of jobs in clean, renewable biomass power under a 25 percent RES by 2025. 
 
 The study found that in the biomass power industry alone, more than 60,000 jobs would be created from 2009 to 2025 under a 25 percent RES. The majority of the jobs will be created in the eastern part of the U.S., where there is currently an abundant supply of biomass, but few biomass power facilities.
 
 Legislation being proposed in both houses of Congress, unfortunately, does not go far enough toward meeting these goals. In fact, both the House and Senate versions of the RES have almost no substantive effect on job creation and essentially maintain the status quo. An increase to a 25 percent renewable electricity mandate, however, would have a substantial positive impact on the economy, the environment and America's long-term energy security.
 
 The study also shows that any standard that falls short of 25 percent by 2025 will only have minimal positive impacts on the economy and the environment. Instead of making meaningful investments in renewable energy technologies, states will look for loopholes and efficiency credits to meet low federal requirements. The BPA fully supports steps toward increased efficiency, however, building a green energy economy and reducing our reliance on foreign oil requires a serious shift to American sources of renewable energy, such as biomass power, wind, solar, geothermal and others.
 
 At a time of 10 percent unemployment, Congress should seize this opportunity to pass strong energy legislation that puts America on a new path toward energy independence built on domestic, clean, renewable sources of energy. The Navigant jobs study provides a clear guide to creating hundreds of thousands of jobs in the biomass power industry and outlines the significant economic benefits of an aggressive RES. The BPA and the RES-Alliance for Jobs will continue to urge Congress to support a meaningful mandate for renewable electricity of 25 percent by 2025. 
 
 The Navigant study can be found at www.res-alliance.org/res-jobs-study. 
 
 Bob Cleaves is president and CEO of the Biomass Power Association. To learn more about biomass power, please visit <a href="http://www.USABiomass.org">www.USABiomass.org</a>.

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Congress Should Support a Strong RES That Will Create Millions of New Jobs

U.S. agriculture is dependent on nitrogen-based fertilizers, and the U.S. fertilizer industry is dependent on natural gas as the primary source of hydrogen for reaction with nitrogen to yield ammonia. In 2003, more than 50 percent of U.S. ammonia was produced in Louisiana, Oklahoma, and Texas because of their large reserves of natural gas. Also in 2003, U.S. producers were second behind China in the production and consumption of ammonia, 90 percent of which was used for fertilizer. A fertilizer in its own right, ammonia is also the feedstock for production of urea, ammonium nitrate and other nitrogen fertilizers. 
 
 The cost of domestic natural gas typically accounts for at least 80 percent of the cost of ammonia-and by extension, the cost of all other nitrogen-based fertilizers. The volatile and high prices of domestic natural gas have resulted in a significant increase in fertilizer imports and a significant reduction in U.S. fertilizer production capacity. 
 
 One way to ensure against overdependence on imported fertilizer is to develop domestic fertilizer production capabilities in noncoastal regions that can compete with current import-based scenarios. Import-based fertilizer production includes the use of low-cost "stranded" natural gas; large-scale ammonia production via the high-pressure, high-temperature Haber Bosch process; and long-range transport to U.S. farmers. 
 
 The Energy & Environmental Research Center at the University of North Dakota recently developed an electrolytic ammonia production process that replaces high-cost, high-purity hydrogen from natural gas with lower-cost mixtures of hydrogen and carbon monoxide derived from biomass gasification. Because it is driven by electricity and operates at significantly milder conditions than the Haber Bosch process, the EERC process offers the potential to directly utilize wind-generated electricity for ammonia production at significantly reduced capital and operating costs versus the Haber Bosch process. 
 
 In partnership with the North Dakota Corn Utilization Council, the Minnesota Corn Research and Promotion Council and the EERC Foundation, the EERC is developing the electrolytic ammonia production process for commercial applications. Progress to date includes development of a highly active and durable catalyst that enables ammonia production at ambient pressure and a temperature of 200 degrees Celsius (392 degrees Fahrenheit) versus typical Haber Bosch conditions of 3,000 pounds per square inch and 450 degrees C (842 degrees F). These milder process conditions translate to significantly reduced capital and operational costs, which will enable commercial production at smaller, more distributed scales than currently required for commercial viability. Distributed-scale production means that plants could be located closer to the farmland where it is being applied, drastically cutting transportation costs.
 
 Based on progress made to date, the EERC is targeting an ammonia production cost of $300 per ton. Once the technology is fully commercially competitive, ammonia production targets would result in lower-cost fertilizer; support domestic fertilizer production; enable extracting value from wind energy without the need for major expansion of expensive, difficult-to-permit transmission capacity; provide a means to potentially lower the carbon footprint of ammonia production using renewable power and feedstocks; and promote rural economic development on the wind- and agriculture-rich Great Plains.
 
 Ted Aulich is a senior research manager at the EERC. Reach him at taulich@undeerc.org or (701) 777-2982.

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Renewable Nitrogen Fertilizer Production

Most biomass projects require the developer to raise large amounts of finance well in advance of breaking ground, let alone commercial operation. Although the debt markets are expected to rebound and the implementation of multiple state and federal financial incentives and capital sources have some saying they already see things opening up, arranging finance for a renewable energy project is not easy, and the route adopted to raise finance has a major bearing on how the project will be developed. It is therefore important that, at an early stage, consideration is given to the available financing options. 
 
 The push for renewable energy and the green economy combined with the multiple grants, guarantees, bonds and other stimulus programs and facilities have resulted in many options for biomass facility developers to consider when layering up their financial model. Though the applications and requirements differ from option to option, they share one threshold requirement: creditworthiness. 
 
 Creditworthiness is a creditor's measure of the project company's ability to meet its debt obligations. The financial markets must get comfortable with their ability to rely on the project to generate a predictable stream of cash flow necessary to ensure repayment of their loans. Investment grade rated projects are projects that have contractually sound cash flows. Such cash flows are the result of well negotiated through-put and development agreements that form the basis of the lender's security structure, credit analysis; hence underpinning the projects ability to get financed. For biomass projects, the contracts and high level considerations for purposes of credit analysis are as follows: 
 
 Fuel Supply Agreement: Financiers will generally require the term of a fuel supply contract to exceed the term of the debt by a reasonable margin (ideally two or three years) or have the term align with or be no less than the tenor of the power purchase agreement (PPA). The contract will specify the price, amount and characteristics of fuel to be delivered on a daily, monthly and annual basis. Further, appropriate escalators will be negotiated and the developer should be cognizant of and seek to control how such price adjusters are triggered and the effect they will have on cash flows over the term of the agreement. Finally, the counterparties (the fuel/waste suppliers) will be expected to be creditworthy entities with access to assured sources of fuel/waste over the term of the contract. As a part of this upstream component of project development, the developer is wise to engage the services of an expert in feedstock supply analysis and modeling.
 
 Engineering, Procurement and Construction Agreement: Often a creditworthy contractor will undertake to carry out design, engineering, procurement and construction on a fixed-price, turnkey basis. The desire is to have the contractor assume "single point" responsibility for the overall construction of the project. The contract will contain completion tests and liquidated damages, which will be payable if the tests are not met by the specified date. The debt markets will likewise require bonding or external guarantees to support the obligations of the turnkey contractor (eg: to ensure ability to perform and pay liquidated damages). If more than one contractor assumes the EPC responsibilities, the development of the project in this regard becomes more complex. In such instances, lenders will require that the responsibility for each separate point is clearly delineated. Furthermore, risk allocation, insurance, and warranties will be more complex. 
 
 Operating Agreement: The operation of the plant is another key consideration of the lending community and will be required to be carried out by a company or entity with an appropriate track record of successful operation of similar facilities deploying the same technology. This is, of course, more important to technologies where operation is more complex. Typically, operating agreements will provide for reimbursement of costs plus an incentive-related performance fee. Lenders and the developer will want the ability to terminate such an arrangement in case of poor performance.
 
 Power Purchase Agreement: The PPA is the cornerstone of the biomass project. The power purchaser, more than other project counterparties, must be creditworthy. Lenders will want the contract term to extend beyond the term of the loan. The contract will be assessed by the lenders for its economics and conditions that might cause early terminations-lenders will want the ability to cure any defaults rather than face termination.
 
 Rigorous conceptual analysis and planning must go into the structuring of the contractual arrangements of any biomass project and the underlying consideration in all instances for the developer should be the creditworthiness of the project. The wise developer should view all material contracts, terms and decisions through the eyes of a potential creditor. 
 
 John Eustermann is a partner with Stoel Rives LLP. Reach him at <a href="mailto:jmeustermann@stoel.com">jmeustermann@stoel.com</a> or (208) 387-4218.

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Creditworthiness Key  to Biomass Project Success

Consulting companies ScottMadden Inc. and Ascendant Partners Inc. have joined forces to help renewable energy  companies secure project financing. The companies are qualified to assist energy organizations in preparing U.S. DOE and USDA loan guarantee and grant applications for renewable energy projects, as well as to help them oversee the project management once funding is secured. The firms have developed detailed methodologies, templates and work plans for each of the DOE and USDA funding mechanisms, which eliminates the guesswork and errors while significantly improving the efficiency of the process.

ScottMadden, Ascendant Partners join forces

Mascoma Corp. appointed William J. Brady as its CEO. He will also join the boards of directors of Mascoma and Frontier Renewable Resources LLC. Prior to joining Mascoma, Brady served as executive vice president and general manager of several operating divisions at Cabot Corp., where he led business units from technical development through commercialization, and managed global capital-intensive businesses and developed strategic relationships with large global customers. Brady will help Mascoma achieve technical and commercial milestones, including continuing to reduce costs for ethanol produced from cellulosic feedstocks, develop additional partnerships for its commercial-scale ethanol project in Kinross Township, Mich., and create strategic joint ventures to commercialize Mascoma's proprietary Consolidated Bioprocessing technology for production of advanced biofuels and chemicals.

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Mascoma appoints Brady CEO

Laidig Systems Inc. has teamed up with Tank Connection Affiliate Group to address the growing needs in storing and reclaiming difficult-to-handle dry bulk materials. In biomass and hot grain meal storage applications, both companies will focus on bulk storage facilities. Tank Connection's rolled, tapered panel (RTP) bolted tank and Fusion coating system is recognized as the top rated, bulk storage tank/system available. Bolted RTP construction is easily containerized and installed globally, utilizing a specialized hydraulic screw jack process. This tank construction process allows crews to install large tanks at grade level, which is safe and provides effective quality control in the field, and will allow Laidig to install its premier reclaim storage systems at any location worldwide.

Laidig, Tank Connection team-up

BinMaster Level Controls, Lincoln, Neb., introduced BinLink, a Web-based monitoring solution for bins, tanks and silos that enables remote wireless inventory management of stored material from any computer connected to the Internet anywhere in the world. The core components of the solution are BinMaster's SmartBob2 and SmartBob-TS1 sensors mounted on the bins, a wireless or wired data communications network, a gateway to provide connectivity to a personal computer or Internet Protocol network, and data collection software that can be viewed by any authorized individual via an Internet connection. BinLink eliminates the need to manually check bin levels, saving time, money and manpower and improving the efficiency of ordering and logistics for all types of operations.

BinMaster introduces BinLink  Web-based bin monitoring

Gas Turbine Efficiency, an energy and aviation products and services company, has appointed John Grant as the company's non-executive chairman. Grant brings a strong executive management profile to GTE, following his work in the engineering and automotive industries in the U.S. and the U.K. Prior to joining GTE, he served as chairman of Torotrak plc and as non-executive director of Pace plc, Melrose plc and MHP SA, which are all listed on the London Stock Exchange. Grant's career started at Ford Motor Co. in 1967, where he progressed through the ranks to achieve executive management positions in Europe and the U.S., until his departure in 1992.

GTE names Grant as new chairman

ADF Engineering Inc., with corporate headquarters in Miamisburg, Ohio, announced that Matt Williamson and Beth Hery recently passed the Ohio Professional Engineer exam in chemical engineering. Williamson is a process department manager and has been with ADF Engineering since May 2008. Hery is a senior process engineer and has been with ADF Engineering since 2005. ADF Engineering is a full-service engineering and consulting firm serving the food, feed, fuel and bioscience industries in the U.S. and Canada.

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ADF Engineering's  Williamson, Hery pass exams

SynGest Inc. announced that the company has engaged Stern Brothers & Co. to raise capital for its first biomass-to-ammonia plant in Menlo, Iowa. After the Iowa project is launched this year, SynGest intends to build similar fertilizer mini-plants in other parts of the country. Discussions regarding emerging opportunities are presently underway with interested parties in Ohio, Oregon, Michigan and Minnesota. Stern Brothers has a national practice in renewable energy finance representing public and private company developers and operators seeking nonrecourse project financing in the biomass-to-fuels and chemicals, ethanol, biodiesel, methane gas and biomass-to-energy sectors.

Stern Brothers to secure financing for SynGest's bio-ammonia project

Evolution Resources, an advanced biofuels production company that produces cellulosic ethanol, has signed a testing services agreement with North Carolina State University. NCSU will work with Evolution Resources as per the agreement to test and bring about improvements in the current laboratory-scale technology within a bigger pilot-scale system. The technology deals with the enzymatic carbohydrate conversion of woody biomass to fermentable sugars.

Evolution Resources signs agreement with NCSU

Energy crop company Ceres Inc. has posted a footprint calculator on its Web site to help electric power producers determine the acres needed to support various-sized biomass-to-power projects. One of the largest renewable resources, biomass can be cofired with coal at existing generating stations or used by large industrial facilities for on-site heat and power. The online tool from Ceres allows users to adjust biomass yield per acre and land usage rates, as well as biomass-fired capacity and heat rate, a measure of efficiency. The calculator can be accessed at www.ceres.net/biopower.

Ceres provides online biopower calculator

Morbark announced the signing of a dealership agreement with Strongco Limited Partnership in Western Canada. With Strongco's five locations in Alberta, Morbark customers in Western Canada now have convenient access to equipment, service and sales. Strongco, in business for more than 50 years, is one of the largest multi-line industrial equipment distribution providers in Canada, providing service in Calgary, Red Deer, Edmonton, Fort McMurray and Grande Prairie. Strongco sells, rents and services mobile industrial equipment in the construction, road building, mining, forestry, utilities and municipal sectors of the economy. It also represents several leading equipment manufacturers, including Volvo, Dressta and Manitowoc.

Morbark, Strongco form Western Canada alliance

Qteros Inc. announced that John McCarthy has joined the company as president and CEO to accelerate its technology and commercial initiatives in the worldwide cellulosic ethanol marketplace. McCarthy's 18-year experience includes managing the transformational growth of numerous life science and biobased chemical companies into high-value commercial entities. He has raised more than $1 billion of capital in the private and public markets, and developed and executed numerous complex and large-scale strategic corporate partnerships. He joined Qteros from Microbia Inc., where he served as chief business officer of this developer of unique biobased specialty chemicals for large-scale industrial applications. Prior to Microbia, McCarthy was executive vice president of Verenium Corp.

ClearFuels adds BNP Paribas to its commercial development team

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Qteros names McCarthy  president and CEO

Genencor, a division of Danisco A/S, is the recipient of the Frost & Sullivan 2009 New Product Innovation Award for Biomass Enzymes. The award was granted for Genencor's Accellerase, a product line of enzymes used to convert biomass into sugar, a critical step in the production of cellulosic ethanol and other advanced biofuels and biochemicals. According to Frost & Sullivan, the Accellerase product line provides feedstock and pretreatment flexibility, better process economics, accessory products and versatility, which are all significant advantages that makes it stand out from the competition.

Genencor receives 2009  New Product Innovation Award

Veolia Water Solutions & Technologies Co. subsidiaries Biothane LLC and N.A. Water systems LLC have begun work installing an advanced wastewater treatment system at The Holmes Cheese Co. in Millersburg, Ohio, which will employ an anaerobic digestion technology to help reduce energy costs. Biothane's Upflow Anaerobic Sludge Blanket system first passes wastewater through a pretreatment and conditioning tank where it is prepared for main treatment. It is then supplied via an influent distribution system on the UASB reactor ground, rising through a bed of granular biomass (sludge bed) where the treatment takes place. At the top, a three-phase settler separates the treated water from biogas and granular biomass, and water and biogas are drawn off separately while the granular is returned to the sludge bed.

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Cheese plant installs  wastewater treatment, digester

Austrian-based AAT Abwasser's biogas division and BioEnergy Technologies LLC, Sumter, S.C., have formed a strategic alliance that will establish BioEnergy as the sole representative for AAT's biogas technology in 44 states in the U.S.
 AAT has more than 26 years of experience in anaerobic digestion technology, with more than 100 plants in operation in Europe and one in Oregon that came on line this past summer, according to Christian Kloser, AAT America managing director. BioEnergy Technologies, a renewable biomass energy provider, builds and operates decentralized facilities on-site at farm and processing locations, generating biogas that is converted to power, and also can provide a source of chilled water, hot water or steam to the host facility, according to BioEnergy Technologies.

Alliance brings Austrian products to US

The Glendale, Ariz., Energy Power Plant, a 2.8-megawatt biogas plant in the city of Glendale's municipal landfill, is now on line and serving customers of utility company APS. A dedication ceremony for the plant was held at the end of January, followed by "Lunch at the Landfill," which was open to the public. The project uses large combustion engines to turn a shaft connected to a generator, producing electricity from the landfill's methane emissions. APS has a power purchase agreement with Glendale Energy LLC. This is APS' first biogas project, but its renewable energy portfolio includes solar, wind, geothermal and biomass, together serving about 60,000 households.

Arizona landfill gas project on line

Missouri-based engineering, architecture and consulting firm Burns & McDonnell will perform engineering services, procurement and construction support services for the design and installation of a biomass gasifier at Xcel Energy's Bay Front Power Plant in Ashland, Wis.
 The company will assist Xcel in converting the last of three coal-fired boilers to a waste-wood feedstock, including wood left behind in logging operations and forests, according to Burns & McDonnell. Engineering and design technology evaluation is underway on the 73-megawatt plant and construction is slated to begin in 2011, with operation in 2012. Burns & McDonnell will review and finalize project costs, as well.

Excel Energy contracts Missouri firm

California-based OriginOil Inc., which has developed a technology to transform algae into a competitor for petroleum, has formed a partnership with London-based StrategicFit, a strategy consulting firm with world-class analytical capabilities. 
 The partnership will focus on increasing the robustness of OriginOil's core algae productivity model by refining underlying assumptions and process logic, according to OriginOil. The life-cycle model will be the starting point for the project, as it shows that a properly sited industrial algae production system could be both profitable and beneficial, according to OriginOil. The knowledge and experience of StrategicFit will help OriginOil identify key opportunities and challenges involved in commercializing its technology platform.

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Partnership will develop  algae production models

Minnesota's Agricultural Utilization Research Institute has been named recipient of a $99,000 award administered through the USDA Rural Development Business Enterprise Grant program, in order to provide technical assistance to small and emerging businesses in the biomass processing industry in Minnesota.
 AURI, a non-profit organization that works to develop innovative uses for agricultural commodities, will distribute the funds throughout seven counties in the state for use as start-up capital loans, building and plant renovations, transportation improvements, project planning and other relevant business needs.

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AURI receives $99,000 USDA grant

Covanta Holding Corp. announced that it has successfully completed its previously announced  acquisition of a  3,000 ton per day operating contract in Miami-Dade County, Fla. Completing this final stage of the acquisition of Veolia Environnement's North American energy-from-waste business enhances Covanta's position as a leader in the development, ownership and operation of energy-from-waste facilities. The businesses acquired from France's Veolia consist of the operating contracts associated with six energy-from-waste businesses; ownership and operation of a seventh facility in Montgomery County, Pa., and one transfer station, also located in Pennsylvania.

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Covanta Acquires Veolia's  NA energy-from-waste business

National Power Corp. and Clenergen Corp. will collaborate in generating electricity from biomass for NPC's Small Power Utilities Group in the Philippines. NPC is the Philippine government's mandated state agency to develop off-grid nonconventional island power systems. Together, the organizations will pursue feasibility studies for the nominated areas: Kabugao, Kalinga, Lubuagan, Apayao, Concepcion, Romblon, Corcuera and Banton, according to Clenergen. NPC believes those areas have the best potential for developing competitive renewable energy. Clenergen will install distributed environmental power systems in the chosen areas, ranging from 0.5 megawatts to eight megawatts, according to the company. The Philippines is an excellent platform to demonstrate biomass and gasification technologies to assure renewable electricity for the Asia Pacific Basin, Clenergen CEO Mark Quinn said.

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Partnership brings biomass power to Philippines

Spanish cellulosic ethanol producer Abengoa Bioenergy has teamed up with Mid-Kansas Electric Co. LLC to develop a cellulosic ethanol and power plant in Stevens County, Kan., to produce 15 MMgy of ethanol and 75 megawatts (MW) of power per year.
 
 Abengoa Bioenergy Hybrid of Kansas (ABHK) will utilize locally available biomass resources such as corn stover, wheat straw and switchgrass as feedstocks, procuring them from farmers/producers in seven counties within a 50-mile radius of the plant. ABHK will require about 2,500 tons of biomass per day, or the equivalent of about 130 truckloads, according to Chris Roach, ABHK project development manager.
 
 Once the biomass materials are harvested into package form, they will be transported via flat-bed trailer to the nearest satellite depot. An estimated 80 percent of the biomass packages will go from the field to a satellite depot for storage and then to ABHK; the rest will be transported directly from the field to the facility, according to the companies. An extensive investigation of biomass availability determined that there will be a sufficient quantity of feedstock to meet demand. Clare Gustin, vice president of Mid-Kansas Electric Co. Member Services & External Affairs, said the facility would require only about 10 percent of the biomass residues available within 50 miles of ABHK. 
 
 Roach told Biomass Magazine that contracting for the materials has already begun. 
 
 The projected cost of construction is $550 million, which will be funded by equity provided by Abengoa Bioenergy, a grant of $76 million from the U.S. DOE to support the commercialization of Abengoa's cellulosic ethanol technology and additional financing through a lender or similar entity.
 
 "The significance of this announcement is that the power purchase agreement gives Abengoa Bioenergy a 20-year contract to ‘take to the bank' for financing," Gustin said. The electricity produced at the site will serve the retail customers of Mid-Kansas Electric located in 34 counties in the state. 
 
 The next step in developing the project will be for Abengoa Bioenergy to obtain an air permit from the Kansas Department of Health and the Environment and prepare an Environmental Impact Statement in compliance with the National Environmental Policy Act.
 
 Roach said project construction is slated to commence late 2010; completion is targeted for 2012. 
 
 Beyond ABHK, Abengoa currently owns two ethanol production facilities in Brazil, and recently completed construction of and is in the process of starting up two facilities in Indiana and Illinois.

Corn stover will provide approximately 76 percent of the biomass feedstock at the ABHK facility. PHOTO: ABENGOA BIOENERGY 

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Abengoa partners for Kansas ethanol/power plant

A job fair in Nacogdoches, Texas, in search of construction workers for a biomass power plant resulted in about 330 completed job applications and almost as many job interviews, according to Bill King, president and CEO of the Nacogdoches Economic Development Corp.
 
 NEDC held the fair in conjunction with Fagen Inc., which is managing construction of the 100-megawatt Nacogdoches Power LLC plant near Sacul, Texas. About half of the job fair attendees came from Nacogdoches County, King said, the rest traveling from elsewhere. "Job opportunities like this attract people from a pretty good distance," he said. The county has been fortunate in experiencing a fairly lower unemployment rate-about 6.2 percent-than surrounding areas, he added. "Housing and construction have been hit pretty hard by this recession."
 
 During the 2 1/2-year construction period, about 200 to 300 workers will be needed at all times, King said, adding that he expected the job fair to attract about 200 people. Many prospective workers have also filled out online applications on Fagen's Web site (www.fageninc.com). Since the fair was announced, King has seen substantial interest in it and the available positions. "We're getting calls from all over the place," he said.
 
 The plant will occupy 165 acres and will run on about 1 million tons annually of biomass such as forest residue, wood processing residue and clean municipal solid waste from a 75-mile radius, according to Fagen. A 20-year power purchase agreement has been reached with utility Austin Energy, which serves Austin, Texas. The $400 million facility is slated for operation in the summer of 2012.

Construction job fair In Texas attracts hundreds

The biofuels and biomass industries received nothing but good news Feb. 3, with the release of the long-awaited renewable fuels standard (RFS2) final rule, the first report generated by President Barack Obama's Biofuel Interagency Working Group, and the Biomass Crop Assistance Program proposed rule.
 
 U.S. Secretary of the Interior Ken Salazar, Agriculture Secretary Tom Vilsack, Energy Secretary Steven Chu, U.S. EPA Administrator Lisa Jackson and Assistant to the President for Energy and Climate Change Carol Browner participated in a conference call to discuss the energy announcements following a meeting with President Obama, Vice President Joe Biden, and a bipartisan group of governors from across the country. 
 
 During the conference, Vilsack pointed out that historically, government agencies such as the USDA and EPA have been duplicating efforts for similar but different energy-related projects, rather than collaborating. The first task force report encourages interagency cooperation, he said, while clearly delineating responsibilities in order to concentrate and leverage resources. 
 
 The report also recognizes that one size does not fit all, Vilsack added. "So every region in the country will able to participate in a biofuel future to create jobs and economic opportunity, particularly in rural communities," he said. Obama's fiscal year 2011 budget will develop five regional feedstock research and demonstration centers that will partner universities, industry and other federal and state agencies, tribal nations and internationals, to accelerate research and development in second- and third-generation feedstocks, and the implementation of a supply chain that will allow the U.S. to get new biofuels to market as quickly and efficiently as possible.
 
 "One issue we face in connection with promoting biofuels is encouraging production of feedstocks," Vilsack said. "So many [people] have been waiting for the proposed rule as it relates to the BCAP program. We believe [BCAP] is an essential component to our national biofuels and renewable energy policies, and needs to be designed to reduce financial risks for farmers, ranchers and forest landowners who want to invest in and establish production of nonfood, nonfeed biomass. BCAP will address the ‘chicken or egg' dilemma that has stalled biomass growth in this sector, and we believe we have fashioned a rule that has sufficient flexibility to ensure technology neutrality. Cellulosic feedstocks, woody biomass, energy cane all need to be and will be explored with the BCAP rule." 
 
 Vilsack also said the interagency group believes the rule addresses concerns expressed by the wood industry, by proposing a prohibition on wood waste and residues not just on federal land but also nonfederal land, that otherwise might be used for higher value products. "We're also putting forward a number of alternatives for matching payments to biomass suppliers to make sure that those funds are targeted to biomass that contributes to an increase in the base line use among current biomass conversion facilities," he said. "The public has 60 days to comment on the proposed rule, and we will incorporate those comments into the final rulemaking process." 
 
 Jackson discussed the changes to the RFS2 ruling, while ensuring it will create many new jobs, particularly in rural areas that have been hit hard by the economic depression, and also help farmers by creating new markets for agricultural products. She estimated the rule will result in an annual $13 billion increase in income for U.S. farmers by 2022.
 
 The RFS2 is an effort to reduce greenhouse gases (GHG), Jackson said, and there has been reasonable worry that with the life-cycle impacts of switching to renewable fuels there may not be reductions of GHGs, or that even more carbon emissions may be generated. "To address those worries, the EPA used the soundest available science that has evolved in response from questions and concerns from a number of stakeholders, and employed a full life-cycle analysis to track GHG emissions for biofuels production and use including land use issues," she said. "Using this, [with RFS2] we've estimated a reduction of carbon emissions to the equivalent of taking 27 million cars off the road annually by 2022."
 
 Jackson concluded by emphasizing that the interagency group wants to send a positive, specific and direct message that the Obama/Biden administration is highly supportive of the biofuels industry, sees a tremendous opportunity for growth and expansion of that industry, and is committed to making it happen.
 
 Novozymes, a company that develops enzymes and is currently building a production facility in Nebraska, applauded the government for its efforts to expand ethanol production. "The new commitment made by President Obama will significantly help grow and advance development of biofuels in the U.S., and at the same time create thousands of new green jobs," said Steen Riisgaard, CEO of Novozymes. "The new RFS2 is a strong framework and by moving to E15 and increased accessibility of E85, the biofuel industry can create more long-lasting, high earning jobs that will help transform the way the U.S. and world use and consume fuel. And at the same time lessen U.S. dependence on foreign oil."

Obama takes steps to boost bioenergy

Fertilizers produced from mostly pine tree biomass by Washington-based EcoTrac Organics have been shown to enhance growth in conifers and pine trees, and can reduce water requirements of treated lawns and plants, according to the company.
 
 Since its establishment in 2007, the company has sought to manufacture and market environmentally friendly products and has come up with three so far, with some patents pending. The first, HyperGrow, is a pine tree-derived biomass fertilizer. It is composed of pine tree sawdust and wood ash from biomass cogeneration processes, according to Jim Lodwig, EcoTrac president. It enhances growth rate, specifically in conifers. HyperGrow is primarily used in applications where the plants require lower levels of nitrogen.
 
 The second product is HyperGrow Plus, which is manufactured using various timber and agricultural waste residues, without adding any synthetic components, Lodwig said. The product is made from 100 percent natural, organic plant and crop waste and replaces some components used in HyperGrow with others that enhance nitrogen content in the fertilizer. HyperGrow Plus is low in phosphate so it's ideal for municipal use, as many cities have created ordinances requiring fertilizers used in golf courses and public parks to be low in phosphorous to reduce the possibility of contaminating the groundwater, according to Lodwig. The product also contains wood ash and sawdust, but does not exclusively contain pine tree or softwood sawdust, according to EcoTrac. Sawdust gives the fertilizer fiber to keep it from leeching through the soil post-application and bypassing the roots of crops and grasses before they can absorb the nutrients. The company obtains sawdust and lumber yard waste for its products from various local lumber mills.
 
 HyperGrow and HyperGrow Plus share beneficial traits for trees, crops, gardens and lawns, such as enhanced growth, replenished fiber in the soil profile, and the increased benefits of that fiber, according to the company. HyperGrow Plus can be applied during the seeding process and is currently being tested by farmers in Washington and Idaho.
 
 EcoTrac's third product, Traction Plus, is a traction aid additive for winter highway maintenance sand and is also made from pine tree biomass. It blends with sand and immediately adheres to compact snow and ice, minimizing the scatter upon application and keeping sand in place longer under traffic conditions, according to Lodwig. Traction Plus also minimizes dust pollution from excessive sand use and fertilizes the areas surrounding the highways. 
 
 EcoTrac is working with Stimson Lumber, the Idaho Forest Group and Colville Indian Precision Pine, among others in the Northwest region of the U.S., to secure lumber processing waste for its products. Raw byproducts are blended and pelletized at West Oregon Wood Products, according to EcoTrac. 
 
 The market potential for EcoTrac's products seems to be substantial, including timber companies, landowners, homeowners, park managers or any entity that plants trees for consumption or beautification, according to the company. EcoTrac expects future markets will include retail consumer applications of its formulas.
 
 The company will continue to research new formulas and different additives for various applications and will investigate new compatible resources for its current products, such as forest slash, according to Lodwig. EcoTrac is also conducting trials using HyperGrow Plus in conjunction with a seed starter called HyperPlantStart, which gives seeds a healthier, stronger start to increase yield potential and reduce the need for chemical applications. The combination gives plants both a pre-emergence boost and a post-emergence growth advantage, according to the company.

EcoTrac's biomass-based fertilizers enhance tree growth. PHOTO: ECOTRAC ORGANICS

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HyperGrow Plus is made with timber waste and agricultural residue. PHOTO: ECOTRAC ORGANICS

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Fertilizers from biomass enhance growth

Posted March 2, 2010, at 10:55 a.m. CST
 
 A Seattle-based company is endeavoring to commercialize a pyrolysis/torrefaction technology that it says produces biochar that is comparable to some of the highest calorific coals. 
 
 NewEarth Renewable Energy Inc. CEO Ahava Amen says the proprietary ECO Pyro-Torrefaction process originated in Canada, where NewEarth has a 25,000-ton-per-year pilot plant. According to Amen, the company has shipped small quantities of biochar to multiple power utilities in the U.S. and Europe, and currently has enough orders for biochar to be considered "sold out for the next three years." 
 
 Amen said NewEarth's biochar has a fine or powdery-like consistency, and asserted that it is different than biochar produced via typical torrefaction processes in that it uses all of the value-added materials within the biomass. "If you simply torrefy biomass, there are still a lot of substances within the biomass that aren't being used, and torrfied biomass itself is still a low-energy fuel," Amen said. Most biochar produces only 10,000 Btu, Amen said. "Our biochar Btu begins at 12,500 and can break 14,000, which is quite an accomplishment because that's where the highest calorific coals are," he said.
 
 Torrefied wood isn't completely hydrophobic, he added. "When you burn it, it produces smoke and odor, but when you burn our biochar, there's only heat; in addition, we make liquid fuel simultaneously, including a sweet biocrude that has a commodity value higher than torrefied wood or even the biochar itself."
 Some torrefaction processes using regular wood at a certain moisture level will produce a lot of waste products, Amen said. "With ours, if we put in three tons of biomass we'll get a ton of biochar with less than 1 percent ash and moisture content, a ton of bio-oil including a heavy oil and a light oil, off-gases which we use to power our technology, and water. Our system efficiently separates all of these products."
 
 Additionally, valuable chemicals used to make pharmaceuticals, clothing and makeup can be extracted from the light oils. "In the oil industry, the bulk of the big money they make is from the light sweet crude; ours can mimic that and it's natural," Amen said. "From our heavy oils, we can make liquid transportation fuels."
 
 Although NewEarth is primarily using wood waste, Amen said the technology is not feedstock specific. "When we're trying to extract chemicals we're feedstock specific, but in the future, we'll be working with energy grasses to replace our wood supply up to 80 percent to 100 percent," he said. "That's not to say wood doesn't have its place, but with the goals we have to replace large amounts of fossil fuels, wood won't always be the optimal feedstock. Also, when you cut the grasses, they pretty much relieve themselves of moisture whereas wood holds moisture for some time. With feedstock, especially if you're using a thermal conversion process, you want to get rid of as much moisture and oxygen as possible." 
 
 NewEarth is currently seeking a financial partner or investors to raise between $60 million and $80 million to construct a 500,000-ton-per-year industrial-scale facility, Amen said. "To illuminate our process results, you don't just get one solid product-you get biochar, two types of bio-oils and chemicals, offering the highest value from biomass," he said. "Torrefaction processes basically just condense wood, and then all of it is burned. So why not take out all of the added value out before burning it?"

Pyro-torrefaction process yields multiple products

Posted March 10, 2010, at 2:14 p.m. CST
 
 A one-year extension of the production tax credit for biomass power facilities is included in the American Workers, State and Business Relief Act, which was approved by the Senate March 10. The five-year credit was originally included in the 2004 Jumpstart Our Business Strength Act and is crucial to the biomass power industry.
 	
 Under the new bill's provisions, the credit period, which expired at the end of 2009, would be extended through 2010 for open-loop electricity-producing facilities placed in service before Oct. 22, 2004, according to the U.S. Senate. It would also be retroactive to Jan. 1, 2010. The proposal carries an estimated cost of $105 million over 10 years. 
 	
 The same extender was cut from the original jobs bill in February, along with biodiesel credit extenders. Biomass Power Association President and CEO Bob Cleaves said the industry is glad to be included in the bill, but has been pushing for a full five-year extension of the credits. "Clearly, this is a short-term extension," he said. It doesn't solve the longer-term challenges of the industry and we will be seeking in 2010 a longer extension than one year, but we are very pleased to be in the bill. It's a reflection of the support we've received in the Congress and we look forward to a swift passage of the legislation and extension of our benefits." 
 	
 More than 100 operating plants in the country count on the production tax credit, according to Cleaves. He has previously said that if an extension is not passed, it will have catastrophic consequences for the biomass power industry, which is responsible for about half of the renewable energy produced in the U.S. 
 	
 The $150 billion piece of legislation also includes an extension through 2010 of $1-per-gallon tax credits for biodiesel, renewable diesel and diesel from biomass, as well as an extension of the 10-cents-per-gallon credit for small agri-diesel producers. The proposal comes at an estimated cost of $1 billion over 10 years, according to the U.S. Senate. 
 	
 The House of Representatives passed the Tax Extenders Act of 2009 in December, without provisions for biomass power. "There has to be a meeting of the minds between two pieces of legislation that are different in scope," Cleaves said. "The bottom line is there has to be a meeting between the House and Senate so that there is one bill sent to the President and hopefully signed into law."
 	
 Both the House and Senate versions of the bill need to be reconciled and both chambers have to approve it before it can be signed into law by President Obama.

Senate passes tax credit extension

A study recently published by Michigan State University has found that diverse biomass crop plantings such as switchgrass and native prairie grasses attract a higher number of beneficial insects than nondiverse crops such as corn.
 
 The purpose of the study was to assess the implications of different biofuel crops for beneficial insects -pollinators and pest controllers such as bees-that provide valuable ecosystem services in agricultural landscapes. MSU entomology professor and study co-author Doug Landis said existing plantings throughout southern Michigan that were not actively being managed as biofuel crops were sampled, and it was found that the crops contained a diverse bee community comprised of 75 species. Overall, bees were three to four times more abundant in switchgrass and prairie grass than in corn.
 
 The study suggests that there are important consequences for the insects in the type of biofuel crop that is grown. Results indicated that as an annual crop with low plant diversity and high levels of soil disturbance, corn tends to have low abundance and diversity of these beneficial insects. By contrast, both perennial grassland-based biofuel crops harbored a higher abundance, species richness, and diversity of beneficial arthropods compared with corn monocultures, according to the study. 
 
 The researchers believe their findings suggest important policy implications. Particularly, on U.S. government policies toward cellulosic biofuels being driven by ethanol production targets that influence research focused on attaining high biomass productivity and corresponding efficiency in processing, without explicit consideration of the landscape-level environmental impacts such systems may induce. 
 
 Landis told Biomass Magazine that a caveat he and his team have is that as these crops are "pushed" for higher yield that diversity will likely decline. Future bioenergy policy should be developed to explicitly enhance biodiversity as a means of improving the delivery of ecosystem services by agricultural landscapes, they contend, while also meeting biofuel production targets.
 
 Funding for the study, published in January in the BioEnergy Research Journal, was provided by the U.S. DOE Great Lakes Bioenergy Research Center, the Michigan Agricultural Extension Station and the USDA National Research Initiative program.

Landis and a team of Michigan State University researchers have found that diverse biomass crops attract more beneficial insects than nondiverse crops. PHOTO: MICHIGAN STATE UNIVERSITY

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Study: Biomass crops attract beneficial insects

Wisconsin biomass advocates are requesting active support from the public to secure the passage of Gov. Jim Doyle's Clean Energy Jobs Act (SB450 and AB649), which was introduced in early January. 
 
 The bill, which largely endorses biomass energy, will increase the use of renewable energy, energy efficiency and cleaner fuels in Wisconsin. "The legislation provides multiple benefits for biomass energy systems and for the first time, introduces measures to encourage the most efficient use of biomass in heating and cogeneration," said Peter Taglia, staff scientist for the environmental advocacy organization Clean Wisconsin. The provision is part of an enhanced renewable portfolio standard (RPS), he added, which would credit biomass thermal applications from cogeneration and biogas injected into the natural gas pipeline, providing additional opportunities for farms to install anaerobic digesters at locations where the cost to install electric generators or transmission isn't feasible. The section also proposes allowing utilities to count the heat produced from biomass cogeneration toward the RPS, and improves the calculations used to determine the energy produced from biomass cofiring and biomass cogeneration facilities, according to Taglia. 
 
 Wisconsin's current RPS targets the increase of renewable energy in the state to 10 percent by 2010 and the proposed bill would expand the RPS to 25 percent by 2020. In addition, all state agencies would use biomass to provide 25 percent of their energy use by 2025.
 
 Among provisions that would benefit the production of local biomass resources is a Biomass Crop Reserve Program, which would award contracts to farmers to plant native perennial plants to sell for bioenergy production. Taglia said this program would help solve the "chicken-and-egg problem" of jump-starting the homegrown fuels market, and make Wisconsin more competitive to receive funding through the USDA's Biomass Crop Assistance Program.
 
 Taglia said proponents of the bill hope to get it passed and signed into law before this legislative session ends in mid-May. Clean Wisconsin is requesting letters of support for the bills from the public, which may be submitted at http://cleanwisconsin.e-actionmax.com/takeaction.asp?aaid=297. 
 
 A public hearing to discuss details of the bill was held at the State Capitol building in February. For an overview of SB450 and AB649, go to www.legis.state.wi.us/lc/publications/climate/index.htm.

Bill will boost biomass in Wisconsin

The new requirement for cellulosic biofuel production in 2010 is reduced to 6.5 million ethanol equivalent gallons in the renewable fuels standard (RFS2), down significantly from the 100 million gallons established in RFS1, included in the Energy Policy Act of 2005. The U.S. EPA released final RFS2 rules Feb. 3 as media outlets, producers and others scrambled to find out how it would affect their industries. 
 
 While the required total volume of renewable fuels produced this year remains the same at 12.95 billion gallons, changes within the requirements for different types of fuels are drastic. Good news came for the biodiesel industry, as the requirement for a new biomass-based diesel program jumped to 1.15 billion gallons, a combination of standards for 2009 and 2010, to be applied in 2010.The advanced biofuel requirement remains the same at 950 million gallons. 
 
 The new cellulosic biofuel standard is based on an updated market analysis that considers detailed information from pilot and demonstration-scale plants, an Energy Information Administration analysis, and other public and private market information, according to the EPA. While 6.5 million shows a drastic reduction, a number of companies appear poised to expand over the next several years, it added.
 
 "We see it as a positive change," said Jennifer Hutchins, spokeswoman for DuPont Danisco Cellulosic Ethanol, which opened a demonstration plant in Vonore, Tenn., at the end of January. "As a leading player in cellulosic ethanol, we're glad the standard has changed. Obviously, the industry wasn't going to meet that 100 million-gallon mandate." The plant runs on corncobs now, but will transition to 100 percent switchgrass over the next year.
 
 "I think it's a great change," said Arnold Klann, CEO of California-based BlueFire Ethanol Fuels Inc., which focuses on producing cellulosic ethanol from waste. "It was very clear our industry couldn't meet the standard set for this year." He added that the new goal is easily achievable and was a good decision.
 
 Fortunately, changes to the greenhouse gas (GHG) modeling mean all classes of biofuels meet the RFS GHG reduction goals. According to the RFS2 life-cycle greenhouse gas analysis, ethanol from switchgrass reduces GHG emissions by a stunning 110 percent through biochemical conversion and 72 percent through thermochemical processes. That was no surprise to DDCE. "We have known about the greenhouse gas reduction potential of switchgrass," Hutchins said. "That's one of the reasons we work with it." Ethanol from corn stover reduces emissions by 130 percent through biochemical conversion and 93 percent thermochemical. That means both meet the 60 percent GHG reduction requirement in EISA for cellulosic biofuels. 
 
 Ethanol from sugarcane also meets the standard, reducing GHG emissions by 61 percent. "EPA's reaffirmation of sugarcane ethanol's superior GHG reduction confirms that sustainably produced biofuels can play an important role in climate mitigation," said Joel Velasco, chief representative in Washington for the Brazilian Sugarcane Industry Association. 
 
 Biomass-based diesel must meet a 50 percent reduction standard to qualify for the RFS2. The National Biodiesel Board welcomed the RFS2, specifically the implementation of the biomass-based diesel program, which will help America reap existing benefits in job creation, energy security and the environment, according to Joe Jobe, NBB CEO. 
 
 The EPA also mentioned five categories of feedstock that are expected to have less or no indirect land use changes, including crop residues such as corn stover, wheat straw, rice straw, citrus residues; forest material such as eligible forest thinning and solid residue remaining from forest product production; secondary annual crops planted on existing crop land; separated food and yard waste; and perennial grasses including switchgrass and miscanthus.
 
 The RFS2 lays out the strategy for reaching the goal of using 36 billion gallons of renewable fuel by 2022. Currently, the country is not on track to meet that goal, as only about 12 billion gallons of biofuels are produced annually.
 	
 "We welcome the commitment of the president to continue growing the domestic ethanol industry," Poet LLC CEO Jeff Broin said. "He correctly noted that producing home-grown ethanol creates jobs in America at a time America most needs them. However, we are concerned that some pieces of the rules put out by EPA today run contrary to that stated effort. Although the international indirect land use change penalty has been lessened somewhat, EPA still relied on the disproven theory when all of the data shows that ethanol production continues to improve and isn't requiring new land." South Dakota-based Poet produces corn-based and cellulosic ethanol from corncobs.

RFS2 reduces 2010 cellulosic ethanol requirement

The conversion of Georgia Power's Mitchell Generation Plant to biomass feedstock has been delayed, awaiting a U.S. EPA ruling on the industrial boiler Maximum Achievable Control Technology (IB MACT) rule.
 
 The rule would regulate emissions of hazardous air pollutants such as certain acid gases, organics, metals and others from industrial boilers. It will likely affect biomass boilers like the one planned for Plant Mitchell, near Albany, Ga., according to Georgia Power Spokeswoman Lynn Wallace. "Our intent was always to convert this boiler with the understanding that we're meeting the EPA rules," she said, adding that undetermined rules make that difficult. 
 
 The plant operates now on coal, generating 155 megawatts. When converted to biomass feedstocks, including waste wood such as tree limbs, tree tops, needles and leaves, the facility will have a capacity of 96 megawatts, according to the company. 
 
 Georgia Power was set to begin spending a significant amount of capital on the project at the beginning of this year. "But now that the rule is in question, it's the prudent thing to do," Wallace said of the action to delay the project. Otherwise, she added, customers could be subject to a cost risk if expensive changes are necessary to meet any new requirements. 
 
 The company had initially planned to begin retrofit construction on the plant in April 2011 and go on line in June 2012. A new project timeline has not been determined, but Wallace said the draft of the ruling should be out in April, at which time Georgia Power will have an idea of whether its already-established standards will suffice. A final ruling is not expected until December 2010. Depending on what the draft brings, the project could be back on track in April. "They may come out with something within our own guidelines," she said. The timing of the final rule release and the possibility of the company having to change plans may bring Georgia Power uncomfortably close to development deadlines for tax credits and other financial incentives. 
 
 In the meantime, Georgia Power is looking into alternative boiler technologies, in case the ruling significantly impacts the cost of the planned boiler conversion. "We think it's in our best interests, just in case the current boiler doesn't meet their specifications," Wallace said. 
 
 The company does not expect to scrap the project altogether, but instead is preparing for possible changes. "We don't think that the project is going to be cancelled," Wallace said. "Our hope is it'll just be a matter of modifying our existing design, or adding new equipment."

Mitchell plant conversion delayed for EPA ruling

A company in Indiana aims to streamline Miscanthus giganteus and Arundo donax (giant reed) production by offering growers plantlets resulting from a micropropagation technology. 
 
 Both crops are high-yielding perennial grasses that have been studied as potential biomass feedstocks for quite some time, but their use as a commercial-scale energy crop has been slow to fruition due to their sterile nature and the labor intensity involved in harvesting the plants.
 
 White Technology LLC acquired an exclusive license for the micropropagation technology, developed by University of South Carolina plant geneticists Laszlo Marton and Mihaly Czako, about a year ago. The technology utilizes the regenerative nature of miscanthus and arundo to enable mass plantings of the crops. 
 
 Kenn Davis, White Technology CEO, said the technology is superior to traditional methods of growing the crops, in that thousands to millions more plants can be grown in the same amount of time required by other companies working to develop and plant rhizomes. Rhizomes are horizontal, underground plant stems, which are cut from mature plants and then planted for reproduction.
 
 "We'll be able to support large farm operations, large enough to support biomass feedstocks for energy plants in a much shorter period of time; it's a lot more reliable," Davis said. 
 
 Davis said White Technology is putting together package deals for buyers and is currently taking orders. He said interest in the crops has been "overwhelming," but the company has found very few who are interested in actually purchasing the plantlets. Rather, the majority of inquiries are persons looking for the mature plants to use as feedstocks at biomass plants. "So we're working to incorporate that philosophy into a package deal," he added. "We have a lot going on."

Indiana company to offer energy crop plantlets

A demonstration-scale facility in Vonore, Tenn., began producing cellulosic ethanol in late January, fueled by a steady diet of corncobs with the intent to transition to 100 percent switchgrass feedstock over the next year. The plant has a nameplate capacity of 250,000 gallons and has its biomass supply chain ready and waiting, through the farmer-owned Tennessee Biomass Supply Co-op.
 
 The plant, developed by partners DuPont Danisco Cellulosic Ethanol LLC and Genera Energy LLC, is one of only a few, however, as dedicated energy crops search for their window to permanently and significantly slip into the U.S. renewable energy market. Two crucial steps in the realization of their potential seem obvious: farmer involvement and land-use patterns. 
 
 Farmers in the Tennessee Biomass Supply Co-op will be responsible for providing switchgrass to the Vonore facility, including growing, material handling, pre-processing, supply chain logistics and even marketing, according to Kelly Tiller, president and CEO of Genera Energy, wholly owned by the University of Tennessee. "That's the very important next step: getting farmers engaged and involved in the supply chain," Tiller says. "We've set this up as a demonstration for how to do this." 
 
 Members of the co-op currently contracted with the University of Tennessee to grow switchgrass for Genera have 2,700 acres planted on private farms. In April, the company will add another 5,000 acres to its cache for use in several of its ongoing projects. "It will actually be in great excess of what we need to operate that facility," Tiller says of the DDCE plant. Switchgrass is a sustainable feedstock that can be used for numerous projects in the Southeastern U.S., she adds. "We actually evaluated a number of different feedstock alternatives and decided that switchgrass was a really good fit for this project and for this region," she says. "We see switchgrass activity as generating a lot of the important values and data we need to develop a commercial-scale supply chain." The U.S. DOE has identified it as a preferred dedicated energy crop and has also determined hybrid poplars and hybrid willows to be favorable tree energy crops for biopower.
 
 Switchgrass is perennial and grows well on marginal and underutilized lands, requires minimal input and can be harvested and handled using existing equipment. The crop's greatest potential is the amount of biomass it can produce, Tiller says, adding that the yield per acre is between eight and 10 tons without improvements in the varieties. Genera, however, will continue work to improve the yield and cost efficiency of the crop. 
 
 "In my opinion, [energy crops] hold tremendous potential," Tiller says, being careful to add that they're not the only solution in the world's transition from fossil fuels. A whole portfolio of technologies will come into play. "But within cellulosic ethanol, I do think dedicated energy crops are critical to the large-scale expansion," she says. The Vonore facility will serve to prepare DDCE's integrated conversion technology for commercial production by 2012.
 
 Genera's 7,000 acres are only the tip of the iceberg in switchgrass planting potential in Tennessee. "We did some modeling, looking at marginal cropland just in Tennessee and identified more than 1 million acres that can move into dedicated energy crop production," Tiller says. 
 
 
 Biobarriers
 
 Land-use patterns will need to change to accommodate the widespread growth of dedicated energy crops, according to Mark Downing, agricultural economist and senior scientist at the DOE's Oak Ridge National Laboratory in Tennessee. "The biggest resource we have is land," he says. "There may be some limited feedstock issues unless we make some monumental changes about what we do with the land that we have."
 
 Food and energy crops can be grown without interfering with each other, but an in-depth look at all the nation's land resources is essential to optimize agriculture and energy policy, Downing says. The U.S. is good at balancing food, feed and fiber, he adds, but hasn't gotten into the fuel equation yet. "Pick and choose your land for energy crops," he emphasizes. "They don't need No. 1 corn land."
 
 Work also needs to be done to determine where each crop would grow best, a project Ceres Inc. has been working on with its switchgrass, miscanthus, sweet sorghum, biomass sorghum and energy cane varieties. The company's high-yielding switchgrass cultivars and high-biomass sorghum hybrids are available now under the brand name Blade Energy Crops. The company's Web site (www.ceres.net) includes maps of the U.S. that outline target markets for each of its crops. Ceres is also evaluating international markets, according to the site. As of now, production of biofuels has been largely limited to the Corn Belt, but the USDA estimates 60 million acres in the nation could be used for dedicated energy crop growth, opening the door to more states participating in biofuels production.
 
 Getting farmers engaged in the supply chain and growing those crops isn't easy, however, and is exacerbated by a lack of standards for biomass conversion technologies. "The farmers are asking the biorefinery what it wants and the biorefinery is asking the farmers what they have," Downing explains, adding that the nation is moving closer to solving the problem, but isn't there yet. "So, I don't have a commodity called biomass that can be assigned value-added properties that make it high enough value to be able to ship it very far." Grain elevators know what they've got when the product comes in, he says. "I want a biomass that looks like grain, handles like grain, is treated like grain. That's my goal."
 
 In order to plant on a large scale, the correct seed varieties and plant materials need to be available, Downing says, making aggressive breeding programs fundamental. Mendel Biotechnology is working to accelerate improvement in plant varieties, drawing on its knowledge of the regulation of plant gene and pathway function. The company serves agricultural companies with new genetic and chemical solutions and strives to be the leading seed company serving the bioenergy industry, according to Mendel.
 
 Another huge barrier to widespread use of dedicated energy crops is the cost of producing cellulosic ethanol. "The trick is yes, you can make ethanol out of lignocellulosic material and it has been done," Downing says. "The problem is you can't afford to do it." Separation of lignin, cellulose and hemicellulose, along with the conversion of cellulose and hemicellulose to sugars for fermenting is a costly endeavor. "You'd think it'd be easy," he says of commercializing an efficient process. "But we have not had the investment. We have not had the push. We have not had, quite frankly, the national need or thrust that the corn ethanol industry has." 
 
 The DOE has awarded some funding to lignocellulosic biorefineries. Under the Biomass Research and Development Initiative, Genera recently received a $2.4 million grant to research and improve switchgrass varieties in cooperation with Ceres and DDCE, Tiller says. With the funding, Genera will compare Ceres's improved switchgrass varieties to traditional ones on a large scale, she says. In addition, Genera was awarded a $4.9 million DOE grant to optimize removal, transportation and storage of switchgrass, including the use of in-field chopping systems instead of baling. 
 
 Downing shares Tiller's belief that dedicated energy crops will play a large role in the switch from petroleum and fossil fuels. Oak Ridge National Laboratory's Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The Technical Feasibility of a Billion-Ton Annual Supply, commonly called the Billion-Ton Study, found that an estimated 1.3 billion tons of biomass feedstock could be available countrywide including agricultural residues, forest resources, herbaceous energy crops and woody energy crops, under a number of assumptions, probably the most important being land use, Downing says. But what that study did not address is equally important: Where are those feedstocks available? What are they? What will it cost? Downing and about 50 fellow scientists are going back to the study and elaborating on it, making some important changes and delving a bit deeper. The results should be released in June. "We'll have to go under scrutiny and knife, but we are optimistic, based on what the secretary [of energy] and the president say we should be producing for fuels by 2022, that we're going to have a significant amount of feedstock to satisfy that," he says. The U.S. renewable fuels standard, established in the Energy Policy Act of 2005, is 36 billion gallons by 2022.
 
 "Growing switchgrass and trees isn't inexpensive," Downing says. "Picking up corn stover is not cheap either. There are nonexistent markets for some of these things; there are always alternative markets that farmers will seek out to provide the highest revenue for their farm enterprises. They don't care what it's used for; they just want the highest price."
 
 
 Near-Term Profitability
 
 "On a macro level, one of the key elements missing in biofuel feedstocks is that most are not profitable today," says Kirk Haney, president and CEO of California-based SG Biofuels. "Jatropha is." SG Biofuels has the largest library in the world of jatropha genetic material, along with 4-year-old field trials in Latin America. "Our business model is to develop jatropha so it's the highest-yielding with the lowest input costs," Haney says. "We think the most important thing is profitability for farmers."
 In mid-January, SG Biofuels announced it had formed a strategic alliance with Life Technologies Corp., a provider of life science solutions, to further sequence the jatropha genomes and put the perennial plant on the fast track to commercialization. Life Technology's choice to partner with SG Biofuels signifies the promise and potential of the plant, Haney says. "It's really market validation for jatropha and market validation for our company," he says. 
 
 "The reality is, in the near-term, biofuels are going to play a very important strategic part in offsetting petroleum," he says, adding that jatropha will have a significant impact on that biofuels industry. Biodiesel from jatropha shows a 70 percent greenhouse gas reduction from petroleum biodiesel levels, he cites. "It's a fuel that works. It's profitable today, and with companies like ours, it's only going to get more profitable." 
 
 The plant has shown yields four to five times those of soybeans and two to three times the yield of rapeseed, Haney says. "Another reason we've approached jatropha is that Mother Nature has already developed this plant to a point where it's clearly a high yielder with lower input costs," he says, adding that it's well-known in the aviation industry. "It makes a great jet fuel," Haney says. "It's actually more fuel efficient than kerosene." The biomass portion of a recent 50-50 biomass/petroleum jet fuel blend consisted of 48 percent jatropha, 1 percent algae and 1 percent camelina. 
 
 SG Biofuels is working to identify favorable traits-including cold tolerance-that will allow the crop to be grown outside its native habitat of Central America. Jatropha can be grown on marginal or abandoned lands so as not to compete with food crops, and is not currently grown in the continental U.S. More than 800 million acres of nonagricultural land around the world could be used to plant jatropha, Haney says, and that does not include areas that could grow cold-tolerant strains. To put that in perspective, 50 million acres are planted with sugarcane today, and about 200 million each of corn and soybeans, he says.
 
 SG, with its new partner, will continue to work with jatropha to bring it to market and has had success in its field trials and lab work. "We have some incredible data that will revolutionize the space," he says, adding that it's too early to disclose it. The alliance will develop region-specific cultivars, an aspect of energy crop production that both Haney and Downing believe is crucial. "One thing we think is missing with a lot of energy crops is not just doing trials in one specific area where the plant grows really well," Haney says, building on Downing's land-use viewpoints. "To get the plant to have the scale of a corn, a soybean, wheat and sugarcane, we have to grow it in different regions of the world." BIO
 
 
 Lisa Gibson is a Biomass Magazine associate editor. Reach her at <a href="mailto:lgibson@bbiinternational.com">lgibson@bbiinternational.com</a> or (701) 738-4952.

DDCE?s demonstration plant in Tennessee began production in January. PHOTO: DDCE

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This partially cut field of switchgrass is used to produce cellulosic ethanol. PHOTO: GENERA ENERGY LLC

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These switchgrass bales will be used in one of Genera Energy?s projects. PHOTO: GENERA ENERGY LLC

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The CEO of SG Biofuels believes that jatropha is the only near-term solution for biofuels production.

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Dedicated energy crops hold massive potential as a renewable energy resource, but hurdles remain in the path of their large-scale utilization.

Energy Crop  Conundrum

Research on miscanthus as an energy crop took off in the U.S. in the mid-'90s, but interest in the grass has peaked during the past few years. Though steady progress is being made in all dimensions of utilizing miscanthus as a biomass crop-from breeding to planting to harvesting to pest control-there are still some challenges to overcome.
 
 Because miscanthus is naturally sterile, it must be grown by planting its root-like stems called rhizomes, a process similar to potato planting. While some groups have focused on developing rhizomes to provide to future growers, which takes about three years to accomplish, others are concentrating on genetic improvements such as seeded varieties of the crop. 
 
 Mississippi State University researchers have spent more than a decade isolating, identifying and developing genotypes of giant miscanthus that would be most suitable for commercial growth in the South. Their work has led to the development of a new strain dubbed Freedom. During MSU variety trials, Freedom demonstrated yields of 25 tons per acre and grew to 12 feet, outperforming switchgrass by a ratio of at least 2:1. 
 
 Soperton, Ga.-based SunBelt Biofuels is taking MSU's research to the next level. The company obtained an exclusive license for Freedom a few years ago, and has since been working to produce plant material to sell to growers, according to SunBelt Biofuels President Phillip Jennings. The company currently has 250 acres of Freedom in Georgia and Mississippi, and plans to have rhizomes available for sale this year.
 
 
 Miscanthus Milestone
 
 It has taken time and dedication to get to the point where SunBelt is able to supply miscanthus rhizomes to growers, according to Jennings. "For the past three years, our concentration has been on a series of studies involving the actual growing of rhizomes so we're able to furnish grower manuals, since it's a new crop," he says. "We're continuing to do numerous studies with major universities in the Southeast to learn more about the genetics of the plant."
 
 Beyond the region's ideal climate, longer growing season and daylight hours, the Southeast, which is a region of focus for SunBelt, offers another advantage to growers-ample idle, available land. Georgia and Alabama each have a little more than 1 million acres of land not currently being utilized, according to Jennings, and South Carolina has 500,000 acres. Additionally, it costs considerably less to rent land in the Southeast than in other regions of the U.S. "Cash rent in Illinois is $200 to $400 an acre, and in Georgia its $50 to $70 an acre," he says. "Land that doesn't produce a profitable food crop-we want that land to host miscanthus." However, that doesn't mean miscanthus can't be grown in other areas from Florida to Canada, Phillips adds, the economics just fit better in the Southeast. 
 
 Freedom out-yields switchgrass because of the ideal growing conditions, while growers in other areas may fare better planting switchgrass. "[In the Southeast], we're going to get four times the amount of cellulose to the acre per year than you'd get with switchgrass," he says. "It's exceedingly hard to produce a stand of switchgrass in the Southeast, and after about three years, stands need to be replanted. It's a wonderful crop for the prairie lands where it is native, but you can't economically, feasibly reach yields that justify what we've got to do with cellulose. Cellulose buyers cannot afford to pay a switchgrass producer what it costs to grow tons of switchgrass in the Southeast-it's pure economics."
 
 Though it's possible for growers to use the same equipment used to harvest hay, Jennings says those contracted for large acreages will likely require something more automated. "There hasn't been a lot of technologies developed surrounding miscanthus-we're surprised at that-but we're in the process of developing and will soon have a precision planter that will plant miscanthus the same way corn or soybeans are planted, and we also have developed a mechanical digger."
 
 Others are also working to automate miscanthus planting and harvesting. The University of Illinois in partnership with Tomax Ltd. and Bermuda King USA, recently unveiled a miscanthus rhizome regeneration harvester and planter system after three years of collaboration. According to the university, the planter demonstrates a more uniform stream of rhizomes, enabling placement at a rate that matches rhizome weight, quality and ground conditions. The four-row planter incorporates separate feed hoppers and placement channels so it can be used for two-row nursery work and larger scale plantations. 
 
 The harvester lifts the rhizomes on a continual basis with a one-pass digging head and oscillating de-soiler. The rhizomes exit via a bulk side discharger that conveys the rootstock to an adjacent trailer. The equipment will be available for licensing this year.
 
 For those who aren't sold on the idea of establishing and planting rhizomes, California-based Mendel Biotechnology Inc. is developing seeded varieties of miscanthus, a route it believes will serve as a long-term solution for commercial production of miscanthus.
 
 
 Planting a Seed
 
 When a company specializes in plant breeding its long-term fundamental asset is the scope and diversity of the gene pool that it can draw on to create commercial varieties, says Mendel Biotechnology President and CEO Neal Gutterson. "So what Mendel did early on, through the acquisition of a breeding program in Germany, was collect miscanthus accessions to put together what we think is the world's best and most robust miscanthus germplasm pool. That pool now has 2,000 accessions; quite a few natural accessions, and some developed varieties." 
 
 Why so many accessions? Gutterson says most of the accessions are not actually under development for commercial use in the next two to four years, but serve as assets to build on in the long term. "In the short term, we're focused on sterile varieties like many other people, and our approach at the moment is to propagate those with partners and to deliver them to farmers and growers in the form of transplant plugs," he says. "Establishing plugs is quite a reliable form of delivering planting material. Like the rhizome system, it's still rather expensive all-in-all, and although Mendel does have a proprietary clone, we don't see that as a long-term solution for a scalable miscanthus industry. For the long term, we're working toward creating varieties that can be reproduced from seeds. A seed production system is less expensive than a rhizome or plug system."
 
 "Seeded varieties will dramatically change the cost structure of producing miscanthus for developers, growers, and power companies and refineries," Gutterson says. "That is our long-term goal, and we're well on the path to that."
 
 Mendel is testing its clonal products on larger scales, as well as its seeded varieties that will come after the clonal products, on smaller scales. At its Kentucky demonstration site, the company has planted nearly 30 acres of miscanthus and expects to increase that to more than 50 acres this year. Outside of the Southeast, Patterson says Mendel is looking at the Atlantic Seaboard, southern parts of the Corn Belt, and has trials of different sizes at about 25 sites that extend into Canada in order to analyze issues such as cold tolerance and flowering control. 
 
 In the meantime, researchers and academia are covering other bases of miscanthus production, including possible hindrances. 
 
 
 Pondering Pests	
 
 Beyond innovations in yield, growth and harvest, perhaps one of the most overlooked aspects of developing new biomass crops is potentially negative scenarios such as disease, pests and effects on other crops. So far, SunBelt hasn't experienced any pest or disease problems in the Southeast that thrive on Freedom, Jennings says. "Our pathologists have injected our plants with numerous leaf diseases and they haven't taken," he tells Biomass Magazine. "We're not saying that Freedom is 100 percent resistant, but it was selected because it's a superior variety for the Southeast."
 
 University of Illinois researcher Joseph Spencer, however, says those involved in or considering growing giant miscanthus should test the waters before jumping in, and fully understand pest possibilities and consequences. He is particularly concerned about the western corn rootworm (WCR). Although the WCR typically feeds on corn crops, Spencer's research indicates it could thrive on giant miscanthus. Just because corn isn't grown in regions that are ideal for giant miscanthus production, doesn't mean that a WCR infestation should be ruled out, Spencer says. "It is present in parts of the Southeast U.S.-in western North Carolina and Tennessee, as well as northern South Carolina, Alabama and Georgia-though this species has invaded these areas only in past 10 to 15 years," he says. "The WCR is a very adaptable and mobile pest. Pest managers in the Midwest know only too well that it can cause serious economic problems if ignored." 
 
 While Spencer agrees with Gutterson and Jennings that interest in farm-scale plantings of giant miscanthus is healthy, he emphasizes that it's not yet known whether the WCR will become a pest of giant miscanthus or whether giant miscanthus will become a source of WCR that will invade corn, or if giant miscanthus might actually benefit corn growers by acting as a refuge for WCR that are susceptible to transgenic corn hybrids. "If I were a grower I would want to go into my giant miscanthus commitment with a full understanding that pests and pest management costs may not be negligible," he says. "In the case of the WCR, it is our most significant pest of corn-it is adapted to a host plant that is available in the same field year after year; we were not surprised that the WCR could survive on a grassy biomass crop with a perennial growth habit. I think it is becoming clear that claims of a lack of pests on giant miscanthus are due to not looking for them, not because they are absent. That sort of hubris gets you in trouble with nature."
 
 From Spencer's perspective, issues related to potential pests must be analyzed extensively for the future success of giant miscanthus. "Another issue that is often discounted is whether giant miscanthus may become invasive," he says. "People, who suggest caution in this regard, are painted as being obstructionist. Any time someone tells me that we don't have time to be careful my discomfort level goes up a notch or two. There are good reasons to work toward biofuel alternatives; this new and developing technology will certainly provide good jobs and profits to those involved. However, until we are willing to accept the responsibility for associated risks I don't think we can go ‘all in' on this." 
 
 As long as the proponents are mainly focused on profits and are unwilling to shoulder the risks, or adequately address them, it is a gamble, Spencer adds. "It's a lot like gambling with someone else's money-there's little need to be risk averse when it doesn't cost you anything to lose. Being thoughtful and thorough in the collection of data about a system's risks and benefits is far less costly than acting in haste and paying to clean up a mess down the road."
 
 
 Fueling the Future
 
 Developing new crops is never easy but miscanthus does have an advantage as a bioenergy feedstock-the Biomass Crop Assistance Program. Gutterson says he thinks programs such as the federal BCAP are essential in helping the industry get on its feet, but it needs to be extended. "Our view is that any program that is important to help an industry get on its feet shouldn't last for 20 years, but BCAP needs to be available longer than its current [duration, which is 2012]. I think if it's available out to 2016 or 2017, it will get the industry over the hurdle. At this stage, where there's a lot of speculative production and a pretty high cost of establishment, BCAP is essential to get this moving."
 
 As always the industry struggles with its chicken and egg dilemma of what should come first the feedstock or the facility. "By the time the cellulosic ethanol people are ready, the [feedstock] needs to be here," Jennings says. "There's no reason to build the facilities until you have the [feedstock]. Our government has somehow gotten one ahead of the other-the area we need help in is the feedstock. Once we get that done, then the facilities will come. It's backwards to get these facilities up and then figure out what to feed them." BIO
 
 Anna Austin is a Biomass Magazine associate editor. Reach her at <a href="mailto:aaustin@bbiinternational.com">aaustin@bbiinternational.com</a> or (701) 738-4968.

MSU researcher Brian Baldwin , left, and SunBelt Biofuels CEO Jennings stand in a field of miscanthus. PHOTO: SUNBELT BIOFUELS

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A miscanthus rhizome ball at nine months PHOTO: SUNBELT BIOFUELS

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Miscanthus rhizome regeneration harvester PHOTO: UNIVERSITY OF ILLINOIS

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Spencer examines giant miscanthus plants that have been exposed to the western corn rootworm. PHOTO: UNIVERSITY OF ILLINOIS

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Genetic improvements and advancements in growth and harvest techniques are moving miscanthus closer to becoming a commercial energy crop.

Make Way for Miscanthus

At a time when many biomass project developers are searching for financing and developing systems capable of handling thousands of tons of biomass, Centerview, Mo.-based Show Me Energy Co-op has already done that and is now gearing up to expand.
 
 Although co-op members couldn't reveal all of their expansion plans because some are still in the early planning stages, they did say they are researching the possibility of building a power plant on site to create green electricity, and negotiating a contract with another utility in the area. Show Me Energy Chairman Steve Flick says the co-op could make an announcement regarding its expansion plans by April or May. 
 
 Currently, the producer-owned co-op processes biomass into pellets that it sells to a local utility, to poultry producers in the area, who use it to heat their chicken and turkey barns, and for home heating. "We've shipped material all over the world," Flick says.
 
 The development process wasn't easy, Flick says, but they were successful because they answered two questions before they started their equity drive: How are we going to move all this material? How are farmers going to make money in the process? "The nucleus of the group started in 2005 and we began by studying feedstock availability, the sustainability, the life-cycle assessments, and how can we provide positive impacts on the rural landscape and create green jobs at the same time," Flick says. The group then went on to figure out what and where would be the best potential for marketing their biomass pellets. Once they had a handle on those, they came up with what they thought was a good business model and went out to find investors.
 
 "We sold shares into the co-op as farmers selling to farmers," Flick says. "We pitched it to small-town America within a 100-mile radius of the proposed plant site. We knew we were successful because we raised a lot of money very quickly." 
 Having the farmers, who would be delivering the biomass to the plant, on board was key to the project's success, Flick says. "We believe that no matter what technology anybody has-power or liquid fuels-if it's not valuable to the farmers they won't participate in the project," he says. "They have to have skin in the game."
 
 The co-op was set up and then closed after the organizers raised their initial investment. It was then reopened in the fall to raise money for capital expansion, Flick says. "We will have some minimal investment in March but that's about it," he says. "It's really only for Missouri residents who live within the local area."
 
 The co-op's equity drive got a boost from the state of Missouri in the form of tax credits for producers who bought shares. "The Missouri Department of Agriculture has been our No. 1 partner through an organization called the Missouri Agriculture Small Business Development Authority," Flick says. In 1988, the legislature granted the Missouri Agriculture Department the authority to set up an organization allowing the state to partner with new-generation cooperatives. "When we sold our shares in that first round, the state of Missouri gave tax credits to the producers who bought those shares." Farmers could then sell their tax credits or use them to reduce their tax liability. "It wasn't like you got a grant and if the thing doesn't work then the state ends up owning it, this is real money on the line," Flick says.
 
 The technology the cooperative uses was designed in-house by a group of farmers and engineers who license it to others who want to build a pellet plants in their local areas. 
 
 Although the co-op hasn't paid out dividends to its members yet, it hopes to soon. "We probably won't do that for another year because we are constantly re-investing and reducing debt load," Flick says. 
 
 
 Delivering the Biomass
 
 The co-op has 650 members from 28 counties, supplying everything from storm- and ice-damaged wood, switchgrass, native grasses, stubble, cereal straws, corn stalks and milo stubble. The plant takes in 10 to 15 truckloads of biomass per day, which doesn't impact its neighbors because it was built in a rural area. "We believed the plant had to have a minimal impact on the area that we were living and working in," Flick says. The site was also chosen because it has access to two hard surface roads and a rail line
 
 About 90 percent of the biomass that comes into the plant is in the form of round bales, Flick says. The rest is transported in on walking floors. The 16-acre site only allows the cooperative to store 3,000 bales so farmers store the material on their farms until the co-op needs it. 
 
 For famers, both members and nonmembers, who deliver to the plant, it's a way to get more value from the crops they already grow. For example, Flick and other members who grow grass seed used to burn the straw after they harvested the seed. Now the straw is baled and delivered to the pellet plant, where it can fetch $40 to $60 per ton, based on its net energy value.
 
 The plant also benefits farmers who for economic reasons have had to change their cropping systems.
 
 Since the early 1950s, Mike Rape's family supplied sod for the turf grass industry for new housing. Until the collapse of the housing market, his farming operation consisted of 100 percent sod. "When we first formed this co-op three or four years ago, I could see there was going to be a tremendous downturn in the housing market, and am now rotating out of the sod," says Rape, who is a past president of the Kansas City Turf Association and is currently on Show Me Energy's board of directors. "We now farm 900 acres and we are going to row crops and energy crops and only going to have maybe 100 to 200 acres of sod."
 
 The sod business is about 80 percent of where it was four or five years ago, when the eight-county region around Kansas City, Mo., was generating 10,000 to 13,000 housing permits a year. Rape says they will barely reach 2,000 permits in 2009. 
 Rape believes the co-op created a perfect opportunity for him, and that between the switch to row crops and the biomass that he delivers to the plant, he will make up for any losses he has incurred, especially when the contract they are currently negotiating with the power company is signed and the plant's production is ramped up. "When we get this up and running to full capacity this should substantially increase and subsidize my loss from the sod business," he says. "I personally think that it could be more beneficial in years to come because the downturn in the housing market is going to be there for a while." 
 
 He let some of his sod fields grow up and then baled the biomass from those fields, and he plans to plant some higher yielding biomass crops that the co-op is experimenting with so that I can get more tons per acre. "I raised zero row crops in the past, so as far as food for fuel in my case, we did not do the traditional row crops at all and never have."
 
 Rape says the energy crops are ideal for planting on marginal ground and areas where the ground slopes. "You can plant energy crops there because you don't disturb the soil and don't have to worry about erosion like you would if you planted traditional row crops."
 
 The co-op has also created opportunities for hobby farmers and others whose primary income isn't derived from farming. 
 
 Mark Schuchmann, a co-op member and an electrical contractor, became interested in joining the co-op because he had some family farmland that was planted to native prairie grasses that could provide him with some extra income. "The beauty of the co-op is that a lot of members are farmers but there are others who are bi-vocational, who work at another job but also do a little bit of farming," he says. "I'm one of those people. I don't have a lot of acres but I have enough to make my commitment."
 
 Schuchmann and Rape also provide extra income for custom balers because they currently have no equipment of their own, and the truckers who deliver the bales to the co-op.
 
 The co-op members are also able to take advantage of the federal Biomass Crop Assistance Program, which pays producers or entities that deliver eligible biomass material to designated biomass conversion facilities that will convert it into heat, power, biobased products or biofuels. "For every dollar that we pay the producer, the federal government subsidizes them with another dollar, which will continue for two years," Flick says. The cooperative was the first to apply and receive BCAP benefits. "We were the first BCAP area in the U.S. and it's working," Flick says. "It was a little confusing because we're creating an industry shift from traditional DCP (Direct and Counter-Cyclical Program) payments and CRP (Conservation Reserve Program) and all this has to flow down from the national office to the state office to the county offices. There was quite a learning curve involved for everyone including us." Flick says they are now looking forward to the next round of BCAP, which will focus on dedicated energy crops. "There could be 25,000 acres of dedicated energy crops planted just for the co-op that in turn would be a wonderful feed supply that could increase our production," he says. "We don't want to sound arrogant here but we believe we are on the right track and we're moving ahead with exporting some of our material."
 
 One of the co-op's marketing objectives is to make sure end users understand the difference between a pellet and an engineered fiber fuel, which is what the co-op produces. "It's important to distinguish between the two because an engineered fiber fuel has three things that bring it to bear: certification showing that it was harvested sustainably; all the bad things that are usually found in biomass including silica, nitrogen, magnesium and potassium that will foul boilers [is removed]; third is our experience in using it," Flick says. 
 
 
 Co-op's Impact 
 
 Show Me Energy co-op executives believe they are only in the beginning stages of a bioenergy economy and that much work needs to be done to build the industry. The co-op plans to send a representative to major universities to educate graduating seniors in agriculture about producing bioenergy crops. In May, I will be running to all the big 12 schools as part of our outreach," Flick says. "It's got to start with the next generation. We're just setting the foundation right now."
 
 Flick is convinced that the cooperative model is the key to growers wanting to participate in the biomass industry, but the producers have to be willing to take risks and invest their own money. 
 
 "It takes five to 10 guys with a checkbook willing to take a risk to set up a co-op just like we did," Flick says. "We didn't know it was going to be successful and it means money on the line, hard work and a vision, and out of those initial people, you need a ramrod and you need somebody who will keep those people together politically," Rape says that Flick is the ramrod who organized the co-op and keeps everyone on track. "Steve is the ramrod," Rape says. "He is the hardest driving individual I have ever met."
 
 Co-op organizers also kept the cost of the plant to a minimum, which made it attractive to investors. "We're not a $50 million project," Flick says. "We built the plant for less than $10 million. We think economies of scale are local and we consider ourselves the new microbrewery on the block."
 
 Flick says he's gotten calls from some large ethanol co-ops who are amazed at the progress that the co-op has made despite the fact that they had to write the book on biomass cooperative development. 
 
 "We're the real deal," Flick says. "We grind a bale every 10 minutes, we suck the dust, we have the breakdowns, we know what has gone right and gone wrong and everybody that says they want to do this. I say put your money where your mouth is, build it, run it, show me." BIO
 
 
 Rona Johnson is editor of Biomass Magazine. Reach her at <a href="mailto:rjohnson@bbiinternational.com">rjohnson@bbiinternational.com</a> or (701) 738-4940.

Show Me Energy processes biomass into pellets that it sells to a local utility, poultry producers in the area, who use it to heat their chicken and turkey barns, and for home heating.

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The nation's first grower-owned biomass cooperative has shown the world that the cooperative model can be successful and is ready to build on that success.

It's Show Time

Eight of the leading U.S. crops produce more than 500 million tons of residue each year, only a fraction of which can be removed for energy production because of equipment constraints and soil erosion concerns, according to a report by the U.S. DOE's Biomass Research and Development Initiative. Even so, crop residue is expected to play an early role in the development of the cellulosic ethanol industry because of its immediate availability.
 
 The report, "The Economics of Biomass Feedstocks in the United States," lists the most common residue as corn stover and straw associated with wheat, rice, barley or oats production. In addition to cellulosic ethanol, these materials can be used for power generation through direct combustion, gasification or cofiring with fossil fuels. 
 
 Poet LLC has operated a demonstration-scale cellulosic ethanol plant in Scotland, S.D., for a year and a half, running on a steady diet of corncobs from local farms. Poet's next endeavor, dubbed Project Liberty, will establish a commercial-scale cellulosic ethanol plant in Emmetsburg, Iowa, in 2011 that will produce 25 million gallons, according to Scott Weishaar, vice president of commercial development for Poet and Poet Biomass.
 
 Project Liberty will be an expansion of a current 50-million-gallon-per-year dry-mill plant called Poet Biorefining, according to Poet, and will require 750 to 850 tons of corncobs per day. The sheer volume of that supply seems staggering, but Weishaar isn't worried. "It's an extremely aggressive goal, but we believe we'll need 300 to 400 farmers involved to support full commercial activity of the cellulosic facility," Weishaar says. "Our objective is to have 100 farmers under contract this next year for cob collection around the Emmetsburg area."
 
 The goal is more than attainable, as demonstrated by a November Project Liberty Field Day that drew many local farmers, some ready to sign on the dotted line. At the event, more than 60 farmers said they would be willing to supply corncobs to the plant, Weishaar says. "The next step would be for them to make their decision on the type of equipment or approach, and then Poet will be contracting with them." 
 
 Farmers contracted to provide feedstock for Project Liberty will need to invest in residue harvesting equipment, Weishaar explains. Currently, little cob collection is done in the country, so much of the required equipment is still in the prototype phase, but some is commercially available. "If they're going to invest in the equipment, we're going to invest in the farmer so the farmer knows he has a market for the cobs he collects," he says. 
 
 
 Soil Depletion, Erosion Risks
 
 Removing residue can cause problems for the soil, depending on where the crop is located, the soil type and how much is removed, according to Noel Gollehon, senior economist with the USDA Natural Resources Conservation Service. Residue serves two main functions for the soil: it protects from rain, wind and erosion; and decomposes back into the soil as organic matter that is an important source of carbon and thereby an important element of soil quality, Gollehon explains. Some crops produce more residue than others and if only a little is present and promptly removed, it leads to soil depletion. In addition, some residues break down quickly, while others remain on the soil. "But as long as we replace the nutrients that are lost with it, it's a practice that can go on for some time," he says. 
 
 "We're staying way below the residue numbers as far as what we're leaving on the field," Weishaar says. "We want to be good stewards of the soil and the last thing we want to have happen is the farmer taking too much material where he opens himself up to nutritional loss or erosion issues."
 
 To make sure this doesn't happen, Iowa State University is conducting region-specific studies in the Emmetsburg area to determine best practices for residue removal. The study includes two extreme scenarios: taking everything off the corn field; and traditional combining where all residue is deposited back onto the field. The research will also evaluate four variations in between and will monitor soil condition, nutrients and other crucial issues. "We want to make sure we can answer those questions for the farmer and more importantly the landowner, on what are the impacts to the soil if it's [removed] one year, three years or whatever it may be for my soil," Weishaar explains. The results were due in February and at press time Weishaar believed they would not deter interested farmers from participating in Project Liberty. "We're confident that it will not be harmful to the soil, that the results will be very positive," he says. Thus far, soil concerns have not steered farmers away, but they do want to know what data is available and what to expect, he adds. 
 
 Project Liberty is on task as far as permitting goes, so the next step is to generate farmer contracts. "The third leg on the stool is activities surrounding E15 and expanding the market," Weishaar says. "The last thing you want to do is build a plant if you don't have an available market to sell the ethanol to. The E15 legislation that will allow our market to expand is vital, as well." 
 
 
 Added Revenue
 
 "We're opening up a new revenue stream for the farmer and creating a new cash crop in the sense that we're going to buy what today is a waste product," Weishaar says. "It's a residue that's thrown back out on the field."
 
 "The revenue piece is a big piece of this," says Craig Reeder, vice president of Hale Farms in Oregon. "It's potential revenue as a crop in rotation, which is helpful for us out here." Hale Farms plants 25,000 acres of green peas, lima beans, sweet corn, wheat, potatoes, grass seed, onions, alfalfa, timothy hay and grain corn. Every year, about 20,000 to 30,000 tons of residues are harvested from most of those crops, excluding onions and potatoes, by PowerStock, a biomass supply chain company. Hale Farms has contracted with PowerStock's parent company, Pacific Ag Solutions, for about 10 years. 
 
 PowerStock, which was recently established to expand Pacific Ag's residue work, harvests a total of 150,000 tons of residue per year in Oregon and Washington, handling the entire process so farmers don't have to do anything more than what's required for their primary crops. "When you're in the business of agricultural residue removal, you're in the business of following another farmer's harvesting equipment at the right speed, taking off the right amount-not too much or too little-and completely removing it from the field," says Steve Van Mouwerik, PowerStock CEO. "For them, it's a service we provide, but for us, it's how we manufacture a product that we can sell."
 
 It's a different approach from Poet's, because Van Mouwerik believes it's not economical for farmers to harvest residue from their own fields. "The important thing about agricultural residue removal is that the farmer can't afford to remove his own agricultural residue because it means purchasing additional harvesting equipment," he says. That additional equipment is typically too expensive to harvest just one farmer's field. "In order to have the proper levels of productivity for a harvest season for agricultural residue equipment, the norm is that one operator will cover a number of farms," he says.
 
 Reeder agrees. "To do it right and to do it timely and cover the acres, that's a several-million-dollar capital investment," he says. "And it happens right at harvest time, so when we're harvesting those crops, we would have to add an entire new set of overhead and an entire new set of equipment and an additional harvest process." PowerStock's strategy allows the farmers to stay focused on their primary crops. "Pulling off ag residue does give you that extra little peck on the cheek at the end of the year that allows you to be a little bit more competitive on your other crops," Reeder says. "It also allows you to take a look at some alternative crops." 
 
 Until now, PowerStock has harvested crop residue to be processed and shipped to Japan and Korea for cattle feed, or sold to domestic dairy operations. This year, however, the company will be involved in its first anaerobic digestion (AD) project in Oregon. PowerStock is also evaluating its involvement in a second AD project in Oregon. They both will involve wheat straw, grass straw and corn stover. "What's new is the ability to utilize agricultural residue from crops in digestion, in bio-oils or in syngas," Van Mouwerik says. 
 
 The market for agricultural residue is undoubtedly larger in Japan, China and Korea than in the U.S., Van Mouwerik says, but he believes the domestic market will grow. "Japan and Korea can pay more at this point for their feedstock than what is currently used in cost models for feedstock for digesters or cellulosic ethanol," he says. "That's not a problem because they're also more demanding when it comes to quality and have some sanitary restrictions. So there's an opportunity for a whole segment of agricultural residue that can't be exported to go into projects here."
 
 PowerStock allows cost-sharing and risk-sharing with farmers who are interested, as an alternative to just clearing the residue and paying the farmer. "If they believe there's an upside in the market, they can do a cost-sharing strategy where you can split the upside," Reeder says. "That's one of the innovative things they've done that's gotten a lot of growers interested in their process." 
 
 Experience has sharpened PowerStock's ability to meet farmers' best practice requirements in harvesting to maximize supply aggregation. PowerStock has relied on Oregon State University to develop practices with growers that ensure the right amount of residue is removed to sustain the condition of the soil, Van Mouwerik says. "Everyone is mindful of what the soil needs because the farmer wants to keep growing his corn and his wheat and his soybean crop, and really it's a matter of formalizing that stewardship as much as it is just doing it," he says. The beauty of PowerStock's operations is that the farmer can dictate how much residue to take or leave, Reeder explains. "If you tell them to leave three inches of straw, they can come in and leave three inches of straw," he says. "They don't have to scalp it right down to the ground." 
 
 Residue has a fertility value in the soil, but it can be managed, Reeder says. Removal is helpful when dealing with heavy residue that is difficult to till back into the soil and usually would need to be burned. "It's not something you have to worry about, but you have to manage it correctly, especially on some of the dry-land acres," he says. Weishaar cites ongoing studies that, early on, have found it beneficial for wheat crops following corn when cobs are removed. "Not having it on the field could actually be a positive thing," he says. 
 
 Reeder sees great potential in residue removal, including a growing opportunity for options in mono-crop agriculture. "If we can get these fiber crops to work and turn this fallow ground into some perennials for the fiber, it's really going to be a benefit to everybody," Reeder concludes. "It'll reduce our carbon footprint and provide us with some crop options and alternatives. [PowerStock] is really helping solidify those markets and create those markets and it's going to be a huge, huge benefit to what we're doing." BIO
 
 
 Lisa Gibson is a Biomass Magazine associate editor. Reach her at <a href="mailto:lgibson@bbiinternational.com">lgibson@bbiinternational.com</a> or (701) 738-4952.

A combine and cart biomass harvesting system collects cobs during a Project Liberty test harvest. PHOTO: POET LLC

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This corn stover is ready for PowerStock to harvest. PHOTO: POWERSTOCK

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Crop residue is abundant and a good source of renewable energy, as long as its removal doesn't cause soil nutrient depletion and erosion.

The Path to Cellulosic Ethanol

In Uruguay, about half of the land is considered priority soils (those allowed by the state to be forested), this means about 1.5 million hectares (3.7 million acres) are hilly areas with shallow soils, frequent outcropping and steep fields. Most of these soils were degraded by sheep overgrazing for more than a century. Many of these areas remain unplanted because of traditional plantation technology, which is based on rubber-tired tractors that cannot be used in such crude conditions.
 
 Most of these types of soils are in the Eastern and Northeastern regions of the country. The price of forestlands there is the most suitable for forest investments, taking into account that it takes a long time for investments to pay off in the saw timber industry. Using the technology described in this article, more than 2,500 hectares were successfully planted in northeast Uruguay (Treinta y Tres and Cerro Largo Departments) in the worst topographic conditions in the country.
 
 This technology is based on the use of bulldozers for ripping and plantation bed preparation, and also utilizing specially adapted bulldozers to apply hydrated polymers at planting time. These polymers protect the seedlings from a lack of water and at the same time provide nitrogen, potassium and a root promotion hormone.
 
 Servicios Forestales Integrales is a well-known Uruguayan company with broad experience in forest ripping and planting, having been involved in the forest generation of more than 50,000 hectares in the past 10 years. In 2007, through a joint venture with Tubron SA, a major chemical company in Argentina, SFI produced a new plantation system mixing bulldozer forest ripping and applying a super-absorbent acrylic polymer in the hole where the trees are planted. The polymer has chemical activity providing for the controlled release of nitrogen, phosphorus and potassium fertilizers and a rooting hormone, which gave the trees a good start, even in the worst drought conditions.
 
 After a successful set of trials, SFI planted about 2,500 hectares of Eucalyptus grandis, E. saligna and E. dunnii in the hilly regions of Northeast Uruguay. 
 
 Although these plantations were developed for saw timber production (long rotations of 20 years), based on initial growth and national forest inventory data (conservative, as we expect from 20 to 30 solid cubic meters per hectare per year), SFI concluded that this new plantation technology could be valid for dendroenergetic forest crops in these degraded and marginal soils.
 
 This type of project contributes greatly to local and national forest development because it increases the production of degraded soils, helps soils recover and creates jobs in one of the less developed zones of Uruguay (1 inhabitant per 15 square kilometers or 6 square miles).
 
 
 Silviculture Development Summary
 
 Silviculture development is basically an adaptation of the hydrated polymer and ripping shallow soil in hilly areas. Starting with conventional weed control, a bulldozer deep ripping using Caterpillar D6 and D8 machines, depending on how rough the conditions are, is applied with opposite discs that allow for plantation bed preparation. If field conditions permit it, the rubber wheels transit would be advisable for common bed preparation.
 
 The greatest benefit of this adaptation is the use of the polymer hydrated mix, with or without the chemical action (nitrogen, phosphorus and potassium fertilizers and rooting hormone). This balance will depend on the soil's texture, water-holding capacity and its chemical fertility.
 
 It's worth noting, that these hydrated polymer mixes function as effective starter fertilizers and aren't dependent on rainfall like common granulated fertilizers for soil dilution, where it can be taken up by the eucalyptus roots. The nitrogen, phosphorus and potassium, and rooting hormone with the electronic matrix of the polymer is control released into the water supply from the beginning when the root system is planted within the gel. In addition, the polymer works as a control-released fertilizer, which means that no fertilizer is wasted and it can be applied at the rate of 2 to 3 grams per seeding, instead of the conventional 80 to 150 grams of mineral granulated fertilizer. This saves the renewable resources of potassium and phosphorus and avoids groundwater pollution of the nitrogen. 
 
 
 Bioenergy Possibilities
 
 Power consumption in Uruguay has been increasing annually at a rate of 50 megawatts per year (Dirección National de Energía y Tecnología Nuclear, MIE, 2007). As hydro sources are still in the development stage and nuclear is prohibited by law, this increase in consumption is being fulfilled by neighboring countries. Both options are costly and not environmentally friendly. So, the Uruguayan state is promoting energy generation using renewable sources, mainly wind and biomass, supporting that with long-term fixed-price contracts and priority in the grid dispatch.
 
 Energy generation by dendroenergy plantations within many areas of Uruguay has the following advantages:
 
 Middle- and high-voltage lines near the forest soils
 
 Land permit prices conducive to forest investments
 
 Presence of permanent and abundant water resources
 
 Good forest sites
 
 Ample wood production using fast-growing species
 
 SFI estimated that 2,000 acres of Eucalyptus grandis, E. dunnii or E. maidennii planted in a 10-year rotation could fully supply a 10-megawatt power plant.
 
 Although pellet production in Uruguay is almost nonexistent, several feasibility studies demonstrate its potential profitability and contribution to the sustainable development of the country. For instance, feasibility studies conducted by the engineering faculty at State University show that a 10,000 ton per month pellet mill would have an installation cost of about $13 million. Estimating the cost, insurance and freight via the Rotterdam pellet price of about 120 Euros ($169), the calculated internal rate of return was 37 percent, with a repayment investment of three to four years (Borsellino, Carrau and Maisonnave, 2007). 
 
 The new development described earlier, promotes better use of forest land with severe outcropping and slopes. With conventional planting techniques (based on rubber-tired tractors) these areas could not be planted and would be only suitable for grazing cattle and sheep. There are hundreds of thousands of hectares of this land in Lavalleja, Treinta y Tres, Cerro Largo Rocha and Maldonado departments. 
 
 Planting costs, using the proposed technology, don't differ much from the conventional method. The increase in the cost of the polymer and the bulldozer application are compensated by savings in the disking and manual fertilizer application. More importantly, the forest company using this technology could plant in hilly areas with no significant economical or ecological value.
 
 The use of mixing polymers protects the seedlings against drought for about 20 to 30 days, and if conditions don't improve a single watering with about 2 to 3 liters (0.5 to 0.8 gallons) per seeding could assure full polymer recharging. The same recharging would also occur with about 10 millimeters (0.4 inches) of rain. 
 
 This will permit the use of marginal and degraded soils for different forest uses, including dendroenergy and other biomass applications, which depending on the situation could offer high profitability for the investor and a source of sustainable development for Uruguay.
 
 The use of the hydrated polymer and the addition of fertilizers and root hormones in its composition, allows for a fast start even in dry conditions. Furthermore, there is field evidence that this treatment permits the seedlings to recover better from frost damage in the winter. BIO
 
 Pablo Reali is a forest, bioenergy and carbon adviser for Servicios Forestales Integrales. Reach him at <a href="http://www.sfi.com.uv">www.sfi.com.uv</a>.

Silviculture adaptation for planting in hilly conditions PHOTO: SERVICIOS FORESTALES INTEGRALES 

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A company in Uruguay is successfully using specially adapted bulldozers and the application of hydrated polymers to protect tree seedlings and develop plantations on marginal lands.

Forest Biomass Generation in Degraded, Steep, Outcropped Ecosystems

Posted February 23, 2010, at 10:34 a.m. CST
 
 California-based SG Biofuels has launched JMax 100, a proprietary cultivar of jatropha optimized for growing conditions in Guatemala with yields 100 percent greater than existing varieties, according to the company. 
 	
 SG Biofuels is a plant oil company specializing in the development of jatropha as a low-cost, sustainable source of oil and has the largest library of jatropha genetic materials in the world. JMax 100 is the first elite cultivar developed through the company's JMax Jatropha Optimization Platform, which provides growers and plantation developers with access to the highest-yielding and most profitable jatropha, the sequenced genome and advanced biotech and synthetic biology tools to develop cultivars specifically optimized for their unique growing conditions, according to SG Biofuels.
 	
 JMax 100 increases the profitability of jatropha to greater than $400 per acre, more than 300 percent above existing commercial varieties. That equates to more than 350 gallons per acre at $1.39 per gallon, according to SG Biofuels. "JMax 100 is the tip of the iceberg in the development of jatropha as a renewable energy crop," said Kirk Haney, SG Biofuels president and CEO. He added that Guatemala has a head start, but the company anticipates advancements through the JMax platform that will further enhance the profitability and productivity of jatropha for growers around the world.
 	
 SG Biofuels will continue to work with partners and collaborators to optimize JMax for region-specific planting through the establishment of in-region technology centers, it said. In addition to its work in Guatemala, SG Biofuels is collaborating with the Hawaii Agriculture Research Center to develop a customized jatropha cultivar that can be used to the meet the demand for locally grown renewable fuel. Jatropha is a global market leader for fuel production and may be the only near-term solution for renewable fuel, Haney said. It can grow on marginal land and is limited only by a few factors, including its lack of tolerance for cold temperatures. But SG Biofuels' research seeks to solve that problem, along with enhance other jatropha traits, such as oil content and seed size.
 	
 The shrub is native to Central America and its seeds contain high amounts of oil that can be refined using existing technology to produce diesel fuel, jet fuel and specialty chemicals.

SG Biofuels unveils jatropha cultivar

Posted February 23, 2010, at 12:50 p.m. CST
 
 Scientists at the University of Manchester have identified two genes that cause plants to grow outward and believe the research could be used to increase the biomass of trees used to produce bioenergy and for other purposes.
 
 Professor Simon Turner said the project, funded by the Biotechnology and Biological Sciences Research Council, began in 2003 with the initial intent of discovering how plants control the way in which cells divide. Turner and UM researcher Peter Etchells studied the plant Adrabidopsis, which has a vascular system similar to a tree's, in order to investigate the growth in its vascular bundles. They found that genes PXY and CLE41 directed the amount and direction of cell division, and by overexpressing CLE41, they saw a greater amount of growth. "We found that overexpressing one gene gives more cells, but they were very disorganized and not useful because the orientation is affected," Turner said. "By understanding how the two genes control both the amount of cell division and the orientation of division that allows us to manipulate it in a useful way." 
 
 Turner said it is difficult to quantify how much mass can be increased in Arabidopsis by gene manipulation, because some tissue undergo cell divisions and radial growth that do not normally divide. "In vascular bundles, there are somewhere between two and three times as many cells," he said. The team is now growing poplar trees in a laboratory to determine whether they fit the Arabidopsis model, and hope to use the results to develop a system to increase wood production.
 
 As far as applicability toward other crops goes, Turner said apart from trees, the researchers know the method works in tobacco, and although tobacco is not currently grown as a biomass crop, that fact has instilled confidence in the researchers that it will work in any dicot crop, such as soybeans or alfalfa. Dicots are flowering plants that have two embryonic leaves or cotyledons, while monocots have one embryonic leaf. "What will happen in monocots such as maize or switchgrass is less clear, but we are currently testing this," he said. 
 
 The research paper called "The PXY-CLE41 receptor ligand pair defines a multifunctional pathway that controls the rate and orientation of vascular cell division" was published online Feb. 10 in Development journal.

Genetic discovery may increase plant biomass

Posted February 24, 2010, at 9:13 a.m. CST
 
 Vancourver-based Lignol Energy Corp. has signed a memorandum of understanding with enzyme giant Novozymes and the two companies have established the framework of a multiyear collaboration agreement to optimize the latest generation of Novozymes' enzymes for use in Lignol's cellulosic biofuel process. 
 	
 The research on enzyme performance will begin this year at Lignol's 100,000-liter-per-year fully integrated pilot plant in Burnaby, British Columbia. Final designs will be developed for a commercial demonstration plant and Lignol plans to build large-scale biorefineries that will utilize its process with Novozymes enzymes, although no timeline has been established yet, according to Ross MacLachlan, Lignol president and CEO. The company is in discussions with the U.S. DOE about funding for a plant that would be completed by the end of 2012, he added. No location has been established, but Lignol expects it will be built in the Pacific Northwest. 
 	
 Lignol's biofuel conversion process uses hardwood chips now, but will begin running softwood later this year, according to MacLachlan. "Essentially, we fractionate the biomass into cellulose, hemicellulose and lignin such that each of these clean streams can be suitable for downstream processing," he said. The Burnaby pilot plant does not run on a full-time basis, MacLachlan said, as it is only used for test runs. Daily and weekly operation is meant to gather data for enhancements and provide information for engineering designs of commercial-scale plants.
 	
 "We are excited with the opportunity to collaborate with the world's leading enzyme producer to optimize their latest technology for Lignol's unique substrate," MacLachlan said. "In doing so, we are removing a critical barrier to the commercialization of cellulosic ethanol. This marks a major step for our industry in achieving the cellulosic biofuel objectives set out by various governments throughout the world. Our integrated pilot is perfectly suited for this type of collaboration in which our industrial process is coupled with Novozymes' biological technology to make cellulosic ethanol a commercial reality." Confirmation of affordable enzyme costs in an industrial facility is essential for commercial momentum, he added.

Lignol, Novozymes team up

Posted February 24, 2010, at 12:56 p.m. CST
 
 BlueFire Ethanol Fuels Inc. recently applied for a $250 million loan guarantee for its cellulosic ethanol biorefinery in Fulton, Miss. The company wants to build two nonfood cellulosic ethanol facilities, one at Fulton and the second near Lancaster, Calif., according to a press release. "Programs like the DOE loan guarantee enable first-of-its-kind technologies to come to fruiting and ultimately help ease the United States' dependence on fossil fuels like petroleum, which is oftentimes imported from hostile nations," said Arnold Klann, CEO of BlueFire Ethanol. 
 
 The Lancaster site, which the company refers to as its first U.S. commercial plant, is shovel ready. The feedstock will be post-sorted cellulosic wastes diverted from landfills in Southern California. They expect to produce about 3.9 MMgy at that location, the press release said. "The company only awaits final financing to begin construction," a spokesperson said. 
 
 The Fulton site is currently in the engineering phase. The company hopes to have permitting completed this summer, with construction planned for the end of 2010. The facility will produce 19 MMgy of ethanol from woody biomass, mill residue and other cellulosic waste. 
 
 The U.S. DOE previously awarded BlueFire up to $88 million through the Energy Policy Act of 2005 and the American Recovery and Reinvestment Act of 2009 for its Fulton plant. If the DOE loan guarantee is approved BlueFire will have secured the needed financing to begin construction, according to the press release. 
 
 "We are looking forward to a very busy and productive year in 2010; we have all of the pieces in place to respond to President Obama's call to boost biofuels production and reduce our dangerous dependence on foreign oil," Klann said. "We at BlueFire are committed to bringing new fuel sources to Americans and agree with the current administration that projects such as ours are the right approach for creating new jobs, equity for shareholders and wealth for the nation, while also developing new export technologies to offset capital flight and give the nation energy security by offsetting oil imports." 
 
 SOURCE: ETHANOL PRODUCER MAGAZINE

BlueFire applies for DOE loan guarantee

Posted February 24, 2010, at 1:08 p.m. CST
 
 The California Air Resources Board (CARB) has appointed 30 people to an expert workgroup that will meet for the first time Feb. 26. The workgroup will look at, among other things, indirect land use change (ILUC) as included in the state's low carbon fuel standard (LCFS). 
 
 Notably, there is one ethanol producer representative from Poet LLC and a representative from enzyme-maker Novozymes. Other members of the work group are from the U.S. EPA, the U.S. DOE, USDA, Union of Concerned Scientists, the European Union, one representative from Brazil, several from various universities and more. "The low carbon fuel standard is an important piece of energy policy, too important to rely on theories or unproven models," said Mark Stowers, Poet's senior vice president of science and technology, in a prepared statement. "As the lone representative for ethanol producers in the work group, I want to make sure that all carbon accounting is based on the wealth of facts and accumulated data regarding agriculture, energy and deforestation. I also want to ensure that all fuels, including oil and electricity, are held to the same accounting standards as biofuels so that the rule truly can lower carbon emissions." 
 
 The representative from Novozymes is Jesper Hedal Kloverpris, a life-cycle assessment specialist for Novozymes. According to the biographies provided by CARB, he completed a PhD in Denmark on ILUC from crop consumption and now works in Novozymes sustainability development department. 
 
 According to CARB's resolution, <a href="http://www.arb.ca.gov/fuels/lcfs/expert_workgroup_propsl.pdf">the work group was formed </a>to assist in "refining and improving the land use and indirect effect analysis of transportation fuels." The work group will also evaluate key factors such as ag yield improvements, coproducts, land emission factors, food price elasticity and more--all of which "might impact" biofuel's land use values. 
 
 The group will meet about once a month through September. A draft report is expected in October. The group will "return to the board no later than Jan. 1, 2011, with regulatory amendments or recommendations, if appropriate, on approaches to address issues identified," the resolution said. 
 
 Another person on the expert work group is Bruce Babcock, a professor of economics and the director of the Center for Agricultural and Rural Development at Iowa State University. He's currently researching estimation of land-use changes caused by biofuels expansion. His goal, he said in an email, is to help improve CARB's "understanding of the degree to which their model assumptions do or do not reflect reality." 
 
 With the U.S. EPA reducing the impact of ILUC in their recently released renewable fuels standard (RFS2), some biofuels supporters are hopeful that could help convince CARB to do the same in California. However, Babcock doesn't believe it will have that direct effect. "I think that CARB needs to use their own model, and they need to find out if their model is adequate for the task at hand," he said. 
 
 In the Poet press release, Stowers said he was honored to be a part of a diverse group of experts from many backgrounds, from academic to government and more. "There will no doubt be some significant points for debate during our meetings," he said, "but I am confident in saying that we all pursue a common goal: to make our environment clean and safe." 
 
 A few months ago, Growth Energy and the Renewable Fuels Association filed a <a href="http://www.ethanolproducer.com/article.jsp?article_id=6346">lawsuit</a> in federal court alleging that California's LCFS violates the federal Constitution. About a month later, the National Petrochemical and Refiners Association and the American Truckers Association also filed a lawsuit. 
 
 SOURCE: ETHANOL PRODUCER MAGAZINE

CARB forms expert work group on ILUC

Posted February 24, 2010, at 2:02 p.m. CST
 
 Canadian cellulosic ethanol producer Enerkem Inc. has attracted a new investor-North American waste and environmental services giant Waste Management Inc.
 
 Enerkem announced the closing of a new round of financing-CDN $53.8 million (U.S. $51.5 million)-which comes from the company's existing institutional investors Rho Ventures, Braemar Energy Ventures and BDR Capital, as well as first-time investors Waste Management and Cycle Capital. 
 
 Waste Management stated that the investment will move the company toward meeting three of its sustainability goals: doubling its renewable energy production, tripling the amount of recyclables processed by 2020, and investing in emerging technologies for managing waste. Waste Management's most recent renewable energy investment was in organic waste-to-biogas technology company Harvest Power.
 
 A portion of Enerkem's new funds, along with a $50 million U.S. DOE grant, will be used to initiate construction of a planned waste-to-biofuels plant in Pontotoc, Miss., which will serve as the company's U.S. ethanol industry debut. It will be Enerkem's second ethanol production facility, however, as began operations in January 2009 at its commercial-scale syngas-to-ethanol/methanol plant in Westbury, Quebec.
 
 The $250 million project will recycle and convert approximately 60 percent, or 189,000 tons, of the municipal solid waste (MSW) at the Three Rivers Landfill, where the 20 MMgy facility will be built.
 
 Significant progress is being made on the development of the Mississippi project, according to Marie-Helene Labrie, Enerkem's vice president of government affairs. "We have filed our state environmental permit, are working with DOE to finalize the paperwork to put the $50 million in funding in place," she told Biomass Magazine. 
 
 The company is also finalizing project agreements with partners, Labrie said. "The construction start date has not been decided upon yet as it is highly dependent on the completion, by DOE, of the review under the National Environmental Policy Act, a process on which we have limited control at this stage."
 
 Dino Mili, Enerkem's vice president of business development, will be speaking at Biomass Magazine's International BIOMASS Conference & Expo in Minneapolis May 4-6. He will be participating in a panel discussion titled "One Person's Trash: Liquid Fuels from MSW."

Enerkem secures Waste Management as investor

Posted February 25, 2010, at 9:50 a.m. CST
 
 Once operational in early 2011, Georgia Biomass in Waycross, Ga., will have the capacity to produce 750,000 tons of wood pellets per year from local timber sources.
 	
 The pellets will be shipped from the port in Savannah, Ga., to Europe and used in biomass power plants owned by German utility RWE Innogy, as well as co-fired in coal plants, according to RWE. The Georgia plant will cost about €120 million ($163 million) and is one of a few being constructed in the U.S. for power in Europe, including two proposed in Arkansas. "Georgia is one of many natural places for building these types of plants in the southeast U.S.A. due to the wood resources and availability of skilled people in the wood forest industry," said Kent Sandquist, project director in Savannah, Ga., with BMC, a Sweden-based biomass manufacturing company collaborating on the Georgia project. 
 	
 The pellets will initially be burned in existing power plants in Amer, Netherlands, where up to 30 percent of the hard coal has already been replaced by solid biomass, mainly wood pellets, according to RWE. The two Amer plants have the capacity to generate electricity for about 3 million homes. Use of the pellets will extend to other pure biomass power plants and also to conventional plants in the Netherlands, Germany, Italy and the U.K.
 	
 Georgia Biomass will use equipment from Washington-based TSI, including two sets of pollution reciprocating grate furnaces, two recycle dryer systems and two sets of pollution control equipment, according to TSI. 
 	
 The plant will require about 1.5 million metric tons of fresh wood per year, which forests in Georgia can sustainably produce, according to RWE. Numerous pulp and paper mills have closed in the past decade, further reducing the local demand for wood and pushing wood growth ahead of consumption.

Georgia Biomass will ship pellets to Europe

Posted March 1, 2010, at 10:55 a.m. CST
 
 A researcher at Iowa State University will use a $4.37 million grant from the U.S. DOE to stack traits in Chlamydomonas alga that will improve oil yield, growth rate and offer better thermal resistance.
 
 "The goal is really to develop it to be able to do breeding for microalgae," said researcher Martin Spalding, professor and chair of genetics, development and cell biology, and a council member of ISU's Plant Sciences Institute. His research will aim for treatment of the strain as any other terrestrial crop. 
 
 A more immediate goal for the 3-year project is to develop one or more strains that can compete for commercial biofuels production. "The algae we're working with currently are not competitive with other strains for biofuels," he said. More important, he'd like to have a platform breeding stock at the end of the project that can be used to respond quickly to biofuel needs that may arise. "We hope to bring this alga to the point where we can tailor it to meet the needs of the industry," he said.
 
 Chlamydomonas alga is ideal for such research because it is the only type with a well-defined, mapped genome. "It's an alga that's been a model system used in biochemistry and genetics for years," he said. "We have a sequenced genome, we understand the metabolism and we have the tools available to us to work with this alga." It's also manipulable and scientists can create extensive mutant screens, from which they can select mutants that are able to produce more oil, Spalding said. "Rather than look for an alga that produces trait ‘x' or ‘y' and then trying to adapt each new strain to production, which is a very difficult process, we are manipulating Chlamydomonas to meet x and y," he said. 
 
 Genetic modification of algae does have its critics and Spalding said the fact that Chlamydomonas alga is well-understood most likely will not ease opponents' fears. "This particular alga is neither more nor less of a concern for people with concerns about genetically modified algae," he said, adding that it's important to note his research will not be done in open ponds. "It will be well contained and well controlled."
 
 The research will increase the number of favorable algae traits in the "toolbox," Spalding said, and it will provide a more sustainable and flexible source for biofuel. "We see it as just the beginning."

ISU will stack algae traits

Posted March 2, 2010, at 9:15 a.m. CNT 
 
 A Danish cellulosic ethanol company and a Japanese heavy industries company will work together toward cellulosic ethanol production in Southeast Asia. Mitsui Engineering & Shipbuilding signed a licensing agreement to build a number of biomass refineries using Inbicon Biomass Refinery technology. "[Mitsui is] currently doing all the feasibilities on how many, volumes, and actual locations," said Christian Morgen, senior manager of business development and marketing for Inbicon.
 
 Mitsui, headquartered in Tokyo, plans to use waste from palm oil production to produce ethanol. The process results in animal feed as a coproduct, or molasses suitable for a high-value mix in cattle feed, Morgen said. The molasses can also be used for biogas production to generate electricity. A second coproduct is solid biofuel, or clean lignin, for energy production either on site or sold to a power station. This is the first time Inbicon has signed a licensing agreement for its technology. 
 
 "With the agreement, we have taken an important step towards the establishing of a plant engineering business for the production of second-generation ethanol in Southeast Asia," said Shunichi Yamashita, director of Mitsui. "We have already committed considerable resources to the development of this new business. Furthermore, we are expecting to expand the cooperation with Inbicon into other markets." 
 
 Mitsui and Inbicon have been developing a relationship for the past year, said Niels Henriksen, CEO of Inbicon. Their first project together was to test palm waste as a feedstock. "Signing this agreement positions Mitsui as a frontrunner," he said. "We consider it a significant step forward into a long-lasting collaboration. It's also an important milestone in the commercialization of Inbicon technology. With the latest developments within enzyme technology from leading enzyme suppliers such as Danisco Genencor and Novozymes, we are now looking at making large-scale production of second-generation ethanol truly practical in countries around the world." 
 
 Inbicon A/S, a subsidiary of DONG Energy A/S, has operated a second-generation biofuel pilot plant since 2003. A demonstration plant was established last December in Kalundborg, Denmark. The biomass refinery converts wheat straw into ethanol and produces coproducts of animal feed and lignin pellets for energy production. 
 
 Besides ship building, Mitsui is active in other sectors including energy, information logistics, industrial plants and medical science.

Mitsui, Inbicon partner for biomass refineries

Posted March 3, 2010, at 11:05 a.m. CST
 
 A one-year extension of the production tax credit for certain biomass power facilities is included in the American Workers, State and Business Relief Act, introduced March 1 by Senate Majority Leader Harry Reid (D-Nev.) and Sen. Max Baucus (D-Mont.). The 5-year credit was originally included in the 2004 Jumpstart Our Business Strength Act and is crucial to the biomass power industry. 
 
 Under the new bill's provisions, the credit period, which expired at the end of 2009, would be extended through 2010 for open-loop electricity-producing facilities placed in service before Oct. 22, 2004, according to the U.S. Senate. The proposal carries an estimated cost of $105 million over 10 years. 
 
 More than 100 operating plants in the country count on that tax credit, according to Biomass Power Association President and CEO Bob Cleaves. He has previously said that if an extension is not passed, it will have catastrophic consequences for the biomass power industry, which is responsible for about half of the renewable energy produced in the U.S. Cleaves was unavailable for comment on the proposed extension this week.
 
 A vote on the new $150 billion piece of legislation could come as early as this week. It also includes an extension through 2010 of $1-per-gallon tax credits for biodiesel, renewable diesel and diesel from biomass, as well as an extension of the 10-cents-per-gallon credit for small agri-diesel producers. The proposal comes at an estimated cost of $1 billion over 10 years, according to the U.S. Senate.

Tax credit extension still possible

Posted March 3, 2010, at 12:07 CNT 
 
 A groundbreaking ceremony was held for Stan Mayfield Biorefinery, a cellulosic ethanol pilot plant to be built in Perry, Fla. The project is a joint venture of the University of Florida (UF), Buckeye Technologies Inc. and the Florida Legislature, which provided $20 million in funding. 
 
 The plant is expected to be operational in the spring of 2011, and will be operated by UF and the school's Institute of Food and Agricultural Sciences (IFAS). "We would not be here today without the exceptional foresight and support of those who realize, even in these trying economic times, how important this work is to our future," said UF President Bernie Machen.
 
 The plant is being built at Buckeye Technologies' Perry, Fla., facility. The company manufactures products made from wood and cotton and distributes them worldwide. "We know we would not be here without the exceptional support of many of the leaders here in Taylor County and at Buckeye," said Machen at the ceremony. 
 
 The UF will build the facility on Buckeye land, said Larry Arrington, UF interim senior vice president for agriculture and natural resources. IFAS will manage the project. "IFAS provides the expertise, and Buckeye provides the raw materials, utilities, and services, including electricity, water and steam," he said. 
 
 The plant will use an engineered E. coli bacterium to break down non-food plant materials to make cellulosic ethanol. This was developed by Lonnie Ingram, a UF professor of microbiology and cell science and director of the Florida Center for Renewable Chemicals and Fuels. Variations of the technology are being used in ethanol plants in Japan and Louisiana, according to the news release. 
 
 The plant was named after a Florida legislator who passed away in 2008. He was a UF graduate who helped secure funding for energy research including this project. 
 
 SOURCE: ETHANOL PRODUCER MAGAZINE

UF constructing cellulosic ethanol pilot plant

Posted March 3, 2010, at 4:35 p.m. CST
 
 A bioenergy demonstration project at the Southeastern Livestock Pavilion in Marion County, Fla., will produce energy and organic fertilizers using the pavilion's raw animal waste.
 
 Florida-based Sigarca Inc. owns the demonstration facility and the patented dry-fermentation process it will use to power itself and provide excess energy to the pavilion. The fertilizers produced will be bagged and marketed to local nurseries and landscaping companies. 
 
 The modular system is not specific to animal waste, according to Jose Sifontes, Sigarca CEO, but can process any biodegradable feedstock including municipal solid waste, waste-activated sludge, food waste, paper, agricultural waste, industrial waste and bioenergy crops. "Actual demonstration uses waste generated at the pavilion during the different weekend shows that include different animals," he said.
 
 The process uses specially-designed bioreactors to digest the feedstock in a heated and moistened environment, Sifontes said. The compact and safe plant produces no run off, noise or noxious odors. 
 
 The demonstration project will operate for one year while studies are conducted to evaluate its performance and its ability to operate on a larger, commercial scale. Sigarca was awarded $500,000 for the project from the Farm to Fuel grant program, initiated by Florida Agriculture and Consumer Services Commissioner Charles Bronson. The project is the first to receive a grant from the fund. Sigarca and its partners invested an additional $539,000 to develop the facility. 
 
 The plant will create numerous economic benefits for its hosts including income from the sale of renewable energy, organic soil, soil tonic and carbon credits; savings from eliminated hauling and tipping fees; and tax incentives and rebates, Sifontes said.

Florida livestock pavilion gets bioenergy plant

Posted March 4, 2010, at 3:54 P.M.
 
 In November 2007, Range Fuels announced intentions to build the world's first commercially-viable cellulosic ethanol plant at Soperton, Ga. Since then, there have been some setbacks and changes made to the master plan. Regardless, CEO David Aldous still sees a bright future for the Broomfield, Colo.-based company, and said Range Fuels continues to embrace the project with full commitment and passion. 
 
 Aldous has been the CEO of Range since November 2008, replacing now director of the board Mitch Mandich. His previous positions include executive vice president of strategy and portfolio for Royal Dutch Shell in London, president of Shell Canada Products and president and CEO of global catalyst company CRI/Criterion.
 
 With a recently-secured $80 million USDA loan guarantee, Range will complete the mechanics of its first project phase within the next week and begin initiating phase two, according to Aldous. The loan guarantee marks the second time the company has scored government-backed funding; the project began following a $76 million U.S. DOE grant in early 2007.
 
 The first project phase includes one gasifier unit and will handle 125 dry tons of wood per day, which Range is purchasing from local suppliers. "As we continue to scale up, we'll use the same size equipment but add multiple (gasifier) units," Aldous said. "Phase one will be mechanically complete next week, and then we'll begin commissioning loop checks and get utilities going." He expects Range to actually be feeding wood into the gasifier in the second quarter of this year, producing fuel shortly thereafter. 
 
 A significant part of phase one, to be operated in a quasi-commercial quasi-demonstration capacity, is to test and learn from the equipment and to experiment with feedstocks other than wood, specifically miscanthus and other energy crops, according to Aldous. 
 
 Initially, the fuel produced will be methanol. "There are a couple of reasons for that," Aldous said. "The catalyst is cheap, so if the syngas has any kinds of hiccups, we won't destroy a bunch of expensive catalysts. We have a couple reactors, and we'll put ethanol catalysts in them and begin producing ethanol in the third quarter of this year." 
 
 Range Fuels' methanol will qualify under the renewable fuel standard 2 (RFS2), as the company plans to put it into biodiesel. RFS2 lowered the cellulosic biofuel requirement in 2010 to 6.5 million gallons, from RFS1's 100 million gallons, due to many changes or delays of cellulosic biofuel projects caused by technological, contractual, financial or other problems. Aldous said he isn't sure whether Range will produce the 4 million gallons of cellulosic biofuel the U.S. EPA anticipates in the rule, but might even produce more, pending ongoing tests. "It's a first-of-a-kind plant, first-year startup, and my experience with these things has been that they don't always run as you hope the first few months, so I think this year will be a year of learning and insight for us." 
 
 Range is also currently engaged in engineering/design for a 50 MMgy ethanol project that will generate power for the grid, and plans to apply for funding late this year or early next year.
 
 On recent criticism for the large amount of money and time spent on the project as well as changes to the original announcement, Aldous said it's very easy to be a skeptic or cynic. "But it's difficult to drive change, innovation and a new way of using energy," he said. "To our critics, I would ask ‘what are you doing to reduce our dependence on foreign oil, reduce greenhouse gases or create a new domestic energy industry?'"

Range Fuels to help meet RFS2 in 2010

Posted March 4, 2010, at 5:20 P.M. CNT
 
 A large number of advanced biofuel industry members are urging Congress to grant an investment tax credit to advanced biofuel producers in order to help overcome financial barriers associated with the timely development of commercial-scale projects. Advanced biofuel producers are currently eligible for a federal production tax credit, but the incentive is unused because there are no operating commercial-scale facilities. 
 
 Nearly 40 industry-relevant groups such as the Renewable Fuels Association, BlueFire Ethanol, Coskata, Enerkem, Verenium, Range Fuels and Iogen signed a letter to U.S. Sen. Max Baucus, (D-Mont.), Charles Grassley (R-Iowa), Rep. Dave Camp (R-Mich.)and Rep. Charles Rangel (D-N.Y.), which points out that there will be no commercial cellulosic biorefineries commissioned before 2011, at the earliest. The principle cause for commercialization delay is lack of funding, the letter states, due to the severe plummet of the U.S. economy.
 
 According to the U.S. DOE's National Renewable Energy Lab, the estimated total project investment in a 50 MMgy advanced cellulosic biofuel refinery is $250 million. Attracting private capital is virtually impossible, the letter points out, as conversion technologies for advanced or cellulosic biofuels are precommercial and most investors are unwilling to take technology risks.

Advanced biofuel industry pushes for tax credit

Posted March 10, 2010, at 2:23 p.m. CST
 
 Pending Washington Gov. Christine Gregoire's signature, a bill recently passed by the Washington legislature will help build a strong forest biomass industry within the state while mitigating overcrowded or fire-prone forests on state trust lands.
 
 According to the Washington State Department of Natural Resources, there are approximately 3 million acres of state trust land in Washington. The Forest Biomass Supply Agreements Bill (SB 6236) will allow the DNR to enter into long-term agreements to supply forest biomass from trust lands for energy projects/purposes. The bill goes hand-in-hand with HB 2165, which was passed in 2009 to authorize the DNR to implement forest biomass-to-energy pilot projects in eastern and western Washington. 
 
 Upon implementation of the bill, rather than having to auction each timber sales' woody biomass waste on a sale-by-sale basis, the DNR will be authorized to provide five-year contracts with up to three renewals or leases for long-term biomass supply. 
 
 Following an invitation of proposals in the summer of 2009, in January, the DNR selected its first four partners for biomass pilot projects out of more than 30 interested parties. They include Parametrix, which plans to develop a transportable fast-pyrolysis system; Borgford Bioenergy LLC, which will build Kulzer BioEnergy Park in Stevens County to generate 9.5 megawatts (MW) of electricity, bio-oil, syngas and biochar; Atlas Pellets will produce pellets from the forest biomass; and Nippon Paper will replace an existing biomass boiler at its paper mill in Port Angeles, Wash., to produce 6 MW of excess power for sale to a power utility to help meet renewable energy requirements. 
 
 The DNR will report to the state legislature in December 2010 on the progress and results of the pilot projects. It is currently pursing funding to initiate a statewide woody biomass investment-grade supply and accessibility study and hopes to have a final report by 2011.

Washington DNR to contract forest biomass

Posted March 10, 2010, at 3:48 p.m. CST
 
 New York-based Summerhill Biomass Systems will unveil its technology for converting plant waste into biomass powder at a showcase Friday in King Ferry, N.Y.
 
 Summerhill has patents pending on its system, which produces a burnable fine powder fuel, similar in texture to baking powder. The fuel can be used to produce heat and burns as intensely as gas, according to the company. 
 
 The powder would cost less than heating oil, including delivery, according to Summerhill President and co-founder James McKnight, and is more efficient than ethanol and other types of biomass produced around the world. The system can consume timber, brush, corn stalks and other plant waste, emitting no smoke or odor. "With our system, everything can be used," McKnight said. "Nothing is wasted." The system is controlled by a thermostat and can be used in grain-drying operations as well as commercial and small industrial applications. 
 
 The company initially received a $75,000 grant from the New York State Energy Research and Development Authority for feasibility studies and is looking for additional investors. 
 
 Local, state and federal lawmakers, potential investors and green energy enthusiasts have been invited to Friday's event, beginning at 11 a.m. Eastern Standard Time at 1520 Route 90. McKnight also presented his technology at the 2008 World Bank Alternative Fuels Symposium.

Summerhill unveils biomass powder technology

Posted March 11, 2010, at 8:42 a.m. CST
 
 The U.S. Senate passed H.R. 4213, the American Workers, State, and Business Relief Act of 2010, by a 62 to 36 margin on March 10. Among its provisions, the legislation provides a one year retroactive extension of the biodiesel tax incentive. 
 
 "The domestic biodiesel industry is pleased that that the Senate has approved a retroactive extension of the biodiesel tax incentive," noted Manning Feraci, National Biodiesel Board vice president of federal affairs. "The lapse in the biodiesel tax credit has been extremely disruptive to the domestic biodiesel industry, and a retroactive extension of this worthwhile incentive will help America realize the job creation, energy security and environmental benefits associated with biodiesel." 
 
 The biodiesel tax incentive has played a critical role in allowing the U.S. to achieve commercial scale production of biodiesel, an advanced biofuel that meets a commercial fuel specification and is used to displace petroleum diesel fuel. This incentive is designed to make biodiesel price competitive with conventional diesel fuel, and is structured in a manner that allows the value of the incentive to be recognized immediately in the market price of the biodiesel. Since the lapse in the tax credit, the US biodiesel industry has seen a dramatic drop in demand and production, leading to additional job losses in this difficult economy. The 23,000 jobs currently supported by the U.S. biodiesel industry are in jeopardy if the incentive continues to lapse. 
 
 With passage of H.R. 4213, the U.S. House and U.S. Senate must reconcile the differences between the two versions of the bill approved by the respective chambers. H.R. 4213 as approved by the U.S. House in December, 2009 also provides for a one year retroactive extension of the biodiesel tax incentive. 
 
 "The NBB strongly encourages House and Senate to work quickly and get legislation retroactively extending the biodiesel incentive to the President's desk for signature. Quick action will allow the nation to again reap the substantial benefits associated with a healthy domestic biodiesel industry," concluded Feraci. 
 
 SOURCE: NATIONAL BIODIESEL BOARD

Senate passes biodiesel tax incentive

Posted March 12, 2010, at 10:19 a.m. CST
 
 The EU is on track to meet its renewable energy target of 20 percent by 2020, the EU Commission announced this week. In fact, it may even surpass that goal by 0.3 percent. 
 
 According to the EU Renewable Energy Directive, first endorsed by EU leaders in March 2007, 20 percent of EU state energy consumption must come from renewable sources by 2020, including biomass, hydro, wind and solar power.
 
 In a summary released by the commission, it was found that 10 out of the 27 EU member states are likely to exceed national targets for renewable energy, led by Spain and Germany. Five states-Italy, Denmark, Luxemburg, Malta and Belgium-are not currently expected to meet their targets with domestic sources only; Italy forecasts the largest deficit.
 
 The states which cannot reach their targets with domestic resources alone must either acquire transfers from other states with surpluses or countries outside of the EU. 
 
 The summary noted that in supplying the EU with renewable energy forecast documents, several states emphasized that in developing their renewable energy sources to meet targets or to take part in the use of cooperation mechanisms under the directive, new infrastructure was required. This included interconnectors and the general need to reinforce the capacity of the grid in many EU countries. For the EU overall, the share of electricity from renewable energy sources is expected to reach 33 percent to 35 percent, accentuating the need to improve the electricity grid's ability to manage and balance electricity flows and to improve interconnections of the grid to improve stability. The commission anticipates that the National Renewable Energy Action Plans, due in June 2010, will contain significantly more information on this matter.

EU to meet renewable energy target

Posted March 12, 2009, at 10:50 CNT
 
 UOP LLC, a division of Honeywell International Inc. focused on specialty materials production and technology processes, is advancing its efforts to develop carbon dioxide (CO2) capture technologies through a demonstration project at its Hopewell, Va., caprolactam production site. The project was recently awarded a $1.5 million cooperative agreement from the U.S. DOE and will be managed by the DOE's National Energy Technology Laboratory. UOP will design equipment to capture CO2 from the facility's exhaust stacks, which will then be delivered to a pond near the plant where New Zealand-based Aquaflow Bionomic Corp. will demonstrate its technology to utilize CO2 for algae cultivation to create algal oil for biofuel production. The residual algae waste will be converted through a rapid thermal processing technology devised by Envergent Technologies, a joint venture between UOP and Ensyn Corp. to produce pyrolysis oil, which can be burned for energy production, 
 
 "This project will demonstrate integrated concepts and technologies that can help reduce GHG emissions while showing the viability of new sources of energy," Jennifer Holmgren, UOP renewable energy and chemicals vice president, said. "Integrated approaches such as these are our best hopes for creating economically sustainable renewable energy solutions." 
 
 Aquaflow director Nick Gerritsen said the project offers his company, which has worked primarily in the biofuels industry, a chance to illustrate the diversity of its technology. "This brings through the versatility and configurability of the Aquaflow system … we can apply the technology in multiple applications and incorporate other business or economic drivers," he said. "We want to try to establish a platform solution that has many potential applications - the aim being to achieve some sort of Google effect, as the world needs a solution in the near term." 
 
 Evan Van Hook, Honeywell's vice president of environment, health and safety, said the selection of the Hopewell site for the project is part of the company's continuous efforts to improve its global efficiency and sustainability efforts. The project also supports UOP's efforts to develop a range of process technologies for capturing CO2 for use in alternative fuels production.
 
 SOURCE: Industrial GHG Solutions

UOP, DOE to produce biofuel from CO2

Posted March 15, 2010, at 10:16 a.m. CST
 
 Massachusetts-based bioscience company Metabolix Inc. and agri-giant Archer Daniels Midland Co. have begun producing Mirel bioplastic at their $300 million commercial facility in Clinton, Iowa, and expect to make initial deliveries to customers within the next month. Through their joint venture, the companies are working up to the plant's full production capacity of 110 million pounds per year, according to Metabolix.
 
 Mirel is a family of biodegradable, biobased natural plastics made from plant-derived sugar. Through a microbial fermentation process, the base polymer Polyhydroxyalkanoate (PHA) is produced within the microbial cells and harvested, according to Metabolix. The company has developed industrial strains of the cells, which can efficiently transform natural sugars into PHA. The recovered polymer is made into pellets to produce Mirel bioplastics products. Mirel resins will biodegrade in natural soil and water environments, along with home and industrial composting systems.
 
 Target markets for Mirel include agriculture and horticulture agencies such as Ball Horticultural Co.; compost bag producers such as Heritage Plastics; marine and aquatic companies such as Bioverse; consumer product manufacturers such as Newell Rubbermaid; business equipment producers such as Labcon; and packaging companies, according to Metabolix. "We believe that these six segments represent over 2 billion pounds of initial addressable demand," said Metabolix CEO Richard Eno. "The market remains extremely robust for Mirel. We have over 3,000 leads for various applications of which we have selected a pipeline of about 100 prospects that are in various stages of product development with Mirel."
 
 Metabolix and ADM continue to see significant demand for Mirel and are shifting their focus toward ramping up sales, implementing next-generation Mirel technology and exploring prospects for plant expansion, according to Eno. As production is in the vearly stage of commercialization, capacity utilization levels will remain relatively low for the next few quarters, according to Metabolix. It will increase as production processes are optimized and as demand increases through acquisition of new customers.

Metabolix, ADM begin bioplastic production

Posted March 17, 2010, at 9:29 a.m. CST
 
 Proponents of renewable energy in Massachusetts have formed a coalition to educate the public about the detriments of a proposed ballot initiative that would unreasonably limit carbon emissions.
 
 The initiative is slated to appear on the Nov. 2 ballot and will mandate that biomass power plants, along with other renewable facilities, emit no more than 250 pounds of carbon dioxide per megawatt hour (MWh) in order to qualify for the state renewable portfolio standard (RPS) of 20 percent by 2025. Without that qualification, plants will not generate renewable energy credits, a key portion of their revenue. 
 
 The mandate is completely unreasonable, according to Matthew Wolfe, chairman of the Committee For A Clean Economy, which formed the coalition, and principal of Madera Energy Inc, a renewable energy project developer. "It totally ignores the life-cycle analysis of biomass, considered to be carbon-neutral," he said. In addition, the definition of biomass in the initiative is broad and would include wood, waste, anaerobic digestion and more. "A lot of different things would be captured in this ballot measure," he said. 
 
 The initiative would stymie renewable energy development in Massachusetts, making it difficult to meet its RPS. "We want to try to develop as much renewable energy as possible and this would hurt that," Wolfe said. It would also significantly impact job creation in the state and hinder innovation. "We want to try to innovate our way out of our dependence on fossil fuels," he said. The technologies available are efficient and the problem is not with the biomass industry, but the ‘not In my back yard' (NIMBY) mindset, Wolfe said, adding that not everyone would agree. "A lot of this opposition is based on NIMBYism," he said. 
 
 The coalition's campaign, led by Rasky Baerlein Strategic Communications, will focus partially on debunking NIMBY-related concerns, but also will educate the public on the overall benefits of biomass power, along with the other effected renewable energy sectors, such as biofuel and anaerobic digestion. Wolfe said the organization has seen positive feedback so far from focus groups. "This is an opportunity to bring together people with common interests around a common issue, which up to this point, hasn't been very well organized," he said. 
 
 Madera is developing a 47 megawatt (MW) combined-heat-and-power (CHP) plant, the Pioneer Renewable Energy Project, in western Massachusetts. The plant will run on clean wood biomass and will have the capacity to provide steam and heat to nearby homes and businesses. Massachusetts has ample woody biomass resources, prompting several other power plant proposals in communities such as Russell and Greenfield, but citizen opposition is broad and seems to be gaining ground. At the beginning of December, the Massachusetts Department of Energy Resources suspended all consideration of new biomass projects for participation in the state RPS as it awaits the results of a third-party study to determine the sustainability and carbon neutrality of biomass power generation. The study, led by the Manomet Center for Conservation Sciences, is largely fueled by the vocal citizen opposition. It should be completed by June, with any new rulings released at the end of the year.
 
 Even with such staunch resistance, Wolfe is optimistic that his coalition will succeed in convincing voters that the initiative will adversely affect the state. "This isn't a great thing that's happening in Massachusetts, but we're confident that we can win this," he said.

Mass. coalition publicizes initiative's negative impacts

Posted March 17, 2010, at 12:15 p.m. CST
 
 Researchers at Delft University of Technology in the Netherlands have discovered that the bacterium Cupriavidus basilensis breaks down furans and other harmful byproducts generated when sugars are released from wood. The discovery holds the potential to remove harmful compounds during the production of second-generation chemicals and fuels from waste wood, avoiding the current expensive and environmentally unfriendly production methods.
 	
 Cupriavidus basilensis completely metabolizes the furans, which can hinder fermentation, and leaves the valuable sugars untouched, according to the University. Assisted by supervisors Han de Winde, professor of Industrial Microbiology, and Harald Ruijssenaars, senior scientist at Bird Engineering, researchers Frank Koopman and Nick Wierckx unlocked the components of the entire degradation process in the bacterium, identifying the genes and enzymes involved. 
 
 The initial discovery of the bacterium's capabilities, however, was unexpected. "As often in this type of research, there's quite some serendipity at stake here," said supervisor Han de Winde, professor and head of the university's Department of Biotechnology. "We were indeed targeting microbial pathways for lignocelluloses (hydrolysates) degradation, however, finding this extraordinary bug yielding full-blown and new HMF/furfural (Hydroxymethylfurfural) utilization pathway was not our immediate expectation." 
 	
 In addition, the team was successful in incorporating the degradation process into a bacterium Pseudomonas putida with common industrial biotechnological uses. Their work was published March 2 in the journal Proceedings of the National Academy of Sciences. "Although still in early days, transferring the detoxification ability to bacteria (or other microorganisms) that at the same time can perform other industrially relevant processes would add value and efficiency to certain biotech processes," de Winde said. "Judging from our current insight into the biochemical and molecular aspects of the HMF/furfural degradation route from Cupriavidus, this should work in other bacteria as well." He added that the team is awaiting further proof. 
 	
 The research is part of the Dutch university research consortium Bio-based Sustainable Industrial Chemistry (B-BASIC), geared toward developing new concepts for sustainable production of energy and chemicals.

Researchers discover furan-degrading bacterium

Posted March 17, 2010, at 1:54 p.m. CST
 
 The view just outside of Harrisburg, Ill., is pretty typical for the area, corn and soybean fields for miles. In the fall of 2010, Southeastern Illinois College in Harrisburg, will share the view with anyone capable of using a computer, offering multiple biofuels themed courses online. Dr. Jonah Rice, interim president of Southeastern, explained that after scanning the environment the school was in, it seemed natural to offer courses dealing with what the region had to offer. "We've determined there is a market out there for our classes," Rice said. 
 
 To teach the classes, titled Energy 111-Introduction to Biofuels, and Energy 151-Ethanol Production, the school has brought in Renee Loesche, a former professor of industrial technology, and most recently a participant in a 160-hour Green Jobs Training Initiative covering applied ethanol processes at the National Corn-to-Ethanol Research Center. "It is with great excitement and pride that I join the renewable fuels initiative at Southeastern Illinois College," Loesche said. "This innovative ethanol and biofuels program will educate and train workers in support of the renewable fuels standard directive, which is leading our nation toward energy security, economic security and environmental security while providing jobs for American workers." 
 
 The classes will range in topics from biomass sources to advanced ethanol production methods. Rice said after talking with former alumni now working for Blendstar LLC out of Houston, and visiting a Green Plains Renewable Ethanol facility in Tennessee the decision of what to include in the courses became clear. "They explained the skills they thought would be most useful," Rice said. The skills emphasized, according to Rice, are chemistry, mathematics and a strong emphasis on communication. Loeshce, who's worked with Genencor, Abengoa Bioenergy and Monsanto Co., explains that most biofuels companies are looking for employees who have a baseline understanding of the ethanol industry and who know the different processes involved at a plant. 
 
 Loesche plans to include projects for making ethanol and live chats discussing everything from indirect land use to the future of cellulosic ethanol. She has reviewed a number of texts for the class and said, "Surprisingly, there is a lot of information on biofuels in a number of textbooks." 
 
 The course will cost roughly $300 and Loesche thinks that people already in an ethanol-related field or those that see a future in ethanol will be the ones most likely to register for the course. Dana Keating, vice president of academic affairs, said virtually anyone could take the course. "There aren't very many courses like this one," Keating said. "We hope to market this biofuels course nationally." 
 
 SOURCE: ETHANOL PRODUCER MAGAZINE

Biofuels course based on industry needs

Posted March 17, 2010, at 2:52 p.m. CST
 
 A recently-released University of Florida study indicates that increased woody biomass use for power generation through implementation of a 7 percent renewable portfolio standard (RPS) in Florida would bring about a modest increase in the state's gross domestic product, employment and state government revenues, but suggests that a more ambitious RPS would require significant forest management practices and could have negative implications on the forest products manufacturing sector. 
 
 The impetus of "Woody Biomass Economic Study" was to evaluate economic effects that varying statewide RPS levels would have on Florida as well as possible effects on woody biomass demand, supply and timber prices. Florida is not one of 28 U.S. states that have implemented an RPS, but a 20 percent RPS by 2020 has been contemplated since 2008 after being endorsed by the Florida Public Service Commission and Gov. Charlie Crist.
 
 John Bonitz of the Southern Alliance for Clean Energy said he doesn't think the study proves or disproves the feasibility of a 20 percent RPS in Florida, despite recent doubt-casting media reports suggesting that the state's forests cannot support one. He believes the study does not use the best available renewable energy data, and that it assumes woody biomass to play an extreme role in an RPS. "The other renewable energy source potentialities in the study-wind, solar and hydro-those numbers were almost half of what we found in our Southern Solutions Report (for a National Renewable Energy Standard)," he said. As a result of these drastically lower estimates, Bonitz said, when analyzing the RPS, biomass renewables had to make up that difference and therefore resulted in extreme assumptions.
 
 In the Southern Solutions report, which found that a 20 percent RPS in Florida is feasible, regional power production from biomass even at the highest level outlined in the report's estimates, would require annual harvests of no more than 0.2 percent of forest resources. Bonitz said he agreed with the study's emphasis on a need to improve management of forestlands to grow more wood, which is the case in all woody biomass-to-energy practices. According to the Florida Forestry Association, the state hosts nearly 16 million acres of timber resources that infuse more than $16.6 billion into the state's economy. 
 
 The UF study also conflicts with a study commissioned in 2008 by the FPSC and the Florida Governor's Energy Office, which determined that Florida could economically produce nearly 25 percent renewable energy by the year 2020.
 
 Outside of Florida, there are a few other states in the Southeast contemplating an RPS; North Carolina is the only state in the region that has implemented one. Bonitz and the Southern Alliance for Clean Energy are working to help southern states evaluate RPS possibilities. Regarding opposition to the role of biomass in RPSs, he said most of it is colored by the media. "It's a small amount of protesters who have a misunderstanding of the technology, and we work throughout the region to answer questions, address concerns and help people learn more about biomass electricity and biofuels," he said. "There are a lot of complexities; it's not a simple technology to address and understand, but it's really easy to succumb to fear mongering. Biomass is clearly something we want to do sustainably; there's tremendous potential in Florida and it's still underestimated and underappreciated."

University of Florida study downplays RPS potential

Posted March 18, 2010, at 8:42 a.m. CST
 
 A 55-megawatt biomass power plant that would have called Gretna, Fla., home will not be built, as city officials announced March 16 that they have terminated consideration of the facility. 
 
 Officials said March 15 that they would extend consideration of the Adage LLC facility for six months in order to further study the plant's impacts and provide the citizens with reasonable assurances that it will not jeopardize their health and safety. A statement from the city reads, "The City has been very disappointed by a small number of individuals, both from outside our community and within, who have made attempts to distort its efforts to create sustainable economic opportunities for the residents of Gretna and Gadsden County; persons who have never in the past demonstrated any particular interest in the welfare of our residents. The City's commitment and determination to increase our nation's ability to produce energy within its borders remains strong, despite the misconceptions that have been fostered by the unfortunate few." 
 
 Adage responded to the city's decision, saying it would suspend development, along with its application for an air permit from the Florida Department of Environmental Protection. In light of the permit suspension, the city released another statement saying it considers the matter closed and will take no further action. The plant cannot legally operate without an air permit, so the project is no longer viable, it said. Gretna City Manager Antonio Jefferson said the choice to terminate project consideration was not influenced by citizen opposition. 
 
 Tom DePonty, public affairs director for Adage, said the company is still exploring locations in the area around Gadsden County because it offers a great place for such a facility. "We are going to suspend work on the project and continue to pursue options in the region," he said. Vibrant forest resources attracted Adage to the area and the state's recently released Woody Biomass Economic Study confirmed market potential, according to the company. For more information on the study and its findings, see Biomass Magazine's <a href="http://www.biomassmagazine.com/article.jsp?article_id=3568">University of Florida study downplays RPS potential</a>. 
 
 Adage, a biopower joint venture of Duke Energy and Areva, will continue to develop its Hamilton County, Fla., plant, which has already received full approval on the state and local levels. The company's technology uses wood debris from forest operations.

Florida city terminates consideration of biomass plant

Posted March 18, 2010, at 11:35 a.m. CST
 
 Ontario Power Generation is moving forward with plans to repower its 211-megawatt (MW) coal-fired Atikokan Generating Station with biomass and has issued a call for potential wood-based biomass fuel suppliers.
 
 Located in northwestern Ontario, Atikokan will be the first power station that OPG will convert to biomass. The company owns three other coal-fired power plants in Canada, and has previously announced plans to evaluate repowering all of them with biomass by the end of 2014.
 
 Spokesman Ted Gruetzner said OPG is looking to contract 90,000 metric tons of fuel for Atikokan in the form of wood pellets. Fuel suppliers to the power station will be required to prove that the supplied biomass is being sourced from sustainable forest management practices.
 
 If all of the wood fuel required to power the Atikokan facility came from harvested wood, OPG said, it would be less than 1 percent of the current allowable harvest within the province. According to the Ministry of Agriculture Food and Rural Affairs, Ontario contains 2 percent of the world's forests and 17 percent of Canada's forests.
 
 There is not yet a definitive timeline or cost set for the project, Gruetzner said. "We're still doing engineering and studying what will be needed in terms of storage and fuel handling," he added. "The big issue is determining how our burners will work with it (wood pellets) and configuring the fuel handling processes." 
 
 In the fall of 2009, as part as the province's Green Energy Act, which calls for Ontario to phase out all coal-fired plants, the Ontario Power Authority launched a renewable energy feed-in tariff that guarantees specific rates for energy generated from renewable sources. The rate for biomass is 13.8 cents per kilowatt for plants under 10 MW and 13.0 cents for larger facilities.

OPG contracting biomass for conversion

Posted March 18, 2010, at 12:59 p.m. CST
 
 Miscanthus and switchgrass, two of the leading cellulosic ethanol feedstock contenders, like any other crops, are threatened by pests that need to be studied and carefully mitigated. Researchers at the University of Illinois Energy Biosciences Institute have recently identified potential pathogenic nematodes-microscopic, wormlike organisms-of both crops and at what levels they are present in different areas.
 
 In a 2008-‘09 nematode survey, the group analyzed samples from 37 miscanthus and 48 switchgrass plots in Illinois, Georgia, Iowa, Kentucky, South Dakota and Tennessee. They found that all sample sites had at least two nematode species that have been reported to reduce biomass in most monocotyledon hosts. 
 
 The presence of nematodes is not unheard of, however, as the organisms provide a variety of functions to soil systems including nutrient mineralization through feeding interactions.
 
 Lead UI researcher Tesfamariam Mekete told Biomass Magazine that results obtained thus far did not come as a surprise. "The result of our first survey fits to our preliminary hypothesis and expectations," he said. "Most of the nematodes we identified are common parasites of monocotyledon plants such as corn."
 
 The levels of the nematodes found in the switchgrass and miscanthus samples were comparable to densities found in other crops, Mekete said, but the damaging population thresholds for the biofuel crops are still unknown. Damage symptoms observed by the researchers included visible stunting of lateral roots and destruction of the fibrous root system, which could contribute to a decline in biomass yield. 
 
 Currently, there are several control methods for a given nematode in different crops, Mekete said, but there is no information available on bioenergy crops such as switchgrass and miscanthus. "Though we are screening some biocontrol agents and other available methods," he said.
 
 The next step for the research team will be work on host suitability and damage threshold densities in a greenhouse setting. Mekete said the group plans to set up field experiments at Urbana and Havanna, Ill., in the summer. 
 
 Eventually, they hope to develop species-specific DNA tests to help identify nematodes in order to develop control tactics.

Researchers study miscanthus, switchgrass pest

Posted March 22, 2010, at 8:12 a.m. CST
 
 Envirepel Energy Inc., a privately held company in Vista, Calif., plans to reopen its first Renewable Energy Facility, Kittyhawk, by the middle of April, after temporarily closing it in June to address a shareholder proxy effort. 
 
 The Kittyhawk Project is a 2.5 megawatt (MW) biomass-fueled power generating facility, with additional biofuel production from recovered water and CO2. 
 
 The anti-global warming and virtually nonpolluting facility design was permitted and built in the middle of a commercial business park. Kittyhawk sets the stage for many additional environmentally friendly facilities to be developed and financed. "By ensuring that the facility doesn't give off any significant amounts of pollution, EEI has shown that we can obtain very difficult permits where others cannot," said Anthony J. Arand, the company's founder, chairman and CEO.
 
 "I'm very happy to announce that we plan to have our team back to work by the middle of next month, so that we can complete commercial operations of the power plant and the initial biofuel production by the fourth quarter of this year. If our CO2 recovery and biofuel production technology is successful, then potentially 5 percent or more of the nation's energy needs could be produced with our process from our country's post recycled landfill waste supply," Arand said. 
 
 The California Public Utilities Commission has called EEI "the answer" to California's need for clean renewable energy. EEI would also help to satisfy Gov. Schwarzenegger's mandate that renewable energy comprise 20 percent of the electrical energy portfolios of California's utility companies by the end of 2010.
 
 Over the past six years, EEI has designed, developed, manufactured and built the first low-emissions combustion system. This ultra-low combustion system consumes urban waste that would normally go in a landfill, and also has the capacity to consume high-sulfur coal, tires, animal waste and many other biomass feedstocks that would pose a significant pollution problem to other power generating or biofuel production facilities.
 
 The company has more than 300 MW of projects in various stages of development in California's San Diego and Imperial counties. These project sites include business parks, rural agricultural areas and metropolitan landfill sites. EEI's Web site is www.envirepel.com.
 
 SOURCE: ENVIREPEL ENERGY INC.

Envirepel renewable energy facility to reopen

Posted March 10, 2010

 
 After Argonne National Laboratory told Biodiesel Magazine in February that it was developing pipeline-ready biofuels-and that the institution did not consider biodiesel to be one of them-the National Biodiesel Board took offense. "Kinder Morgan is currently moving B5 on the Plantation Pipeline, and B5 has been piped in Europe for years," said Steve Howell, NBB technical director. "So saying that biodiesel isn't a pipeline fuel is just wrong."
 
 Nevertheless, a major national laboratory isn't looking to biodiesel as it ramps up an effort to produce a "drop-in fuel" made from biobased materials. "It's a free country and they feel they can use traditional petroleum processing technology to produce a hydrocarbon fuel that's different than a methyl ester, but that doesn't give them the right to make false statements about biodiesel," Howell said. 
 
 Howell told Biodiesel Magazine that he is part of a task force looking for the approval of 100 parts per million in jet fuel, so that biodiesel can be piped in the fuel infrastructure that transports a variety of fuels. The current level is 5 parts per million in the United States. "The RFS will force the transport of biodiesel in pipelines because it is the most efficient way for oil companies to move it," Howell said.

NBB says biodiesel is a pipeline fuel

Have you ever looked back on a period of time in your life-a day, week or month-and thought that it flew by and yet seemed like an eternity? It's not logical to perceive both scenarios at the same time, and yet I had that experience recently. 
 
 The eight days between Feb. 3, when the announcement was made that U.S. EPA had issued its final rule on RFS2 implementation, and Feb. 10, the close of this year's National Biodiesel Conference & Expo, seemed like an eternity. Usually when people are busy, time seems to fly and in one sense, it did. In another sense, however, with so much information on the final rule, the tax credit and other news made those eight days seem much longer than a week. 
 
 Having been to the past five National Biodiesel Conferences, it was clear to me this year in Grapevine, Texas, that the industry was worse off than ever before. The economy and lapse of the federal blender tax credit have taken their toll on producers. Attendance was down and there were far fewer exhibit booths in the expo hall, as evidenced by wide open spaces on the tradeshow floor. There were no celebrities this year either-no Willie Nelson, or Merle Haggard, or Melissa Etheridge. Not even Darryl Hannah.
 
 Aside from the tax credit situation and the poor economy, producers and others in the biodiesel business desperately sought information on RFS2. Associate editor Nicholas Zeman and I cover the conference in a double-length review article, called, "Seeking Answers," featured on page 22. Since we produced nearly 4,000 words in our review of the conference, I'll spare the reiteration of what you can find just pages from this column. 
 
 There is one particular aspect of RFS2 whose underlying logic I fail to understand. RFS2 was passed as part of the Energy Independence and Security Act of 2007, signed by President George W. Bush. The act was a move to decrease our dependence on foreign oil and make our energy future more secure. Replacing liquid petroleum fuels whose crude oil feedstock by and large comes from lands afar with domestic renewable fuels seems like a no brainer. It's a great concept. 
 
 However, if EISA is about energy independence and security, why is EPA allowing imported biodiesel and biodiesel made from imported feedstock to qualify for the RFS2 program? It doesn't make sense to me. I asked this question of Dan O'Connor with (S&T)2 Consultants, who presented during a breakout session on RFS2. His response was that it provides diversity to our energy supply. That sounds okay, but the act is not called the energy diversity act. 
 
 I understand that trade is global and there is no reason to be a modern-day protectionist. I also see that it is a good thing to do whatever we can to reduce oil imports from the Middle East, Venezuela and other hostile regions whose citizens and governments want us dead. But the scenario of shipping biodiesel to the U.S. from Malaysia or India to satisfy a federal mandate while domestic producers are out of business because Congress cannot bring itself to do the right thing and reissue the biodiesel tax credit borders on absurdity.

March 2010

Business Briefs

ScottMadden, Ascendant Partners join forces

Mascoma appoints Brady CEO

Laidig, Tank Connection team-up

BinMaster introduces BinLink Web-based bin monitoring

GTE names Grant as new chairman

ADF Engineering's Williamson, Hery pass exams

Stern Brothers to secure financing for SynGest's bio-ammonia project

Evolution Resources signs agreement with NCSU

Ceres provides online biopower calculator

Morbark, Strongco form Western Canada alliance

ClearFuels adds BNP Paribas to its commercial development team

Qteros names McCarthy president and CEO

Genencor receives 2009 New Product Innovation Award

Business Briefs

Columns

Federal Support for Biofuels Intensifies

Congress Should Support a Strong RES That Will Create Millions of New Jobs

I'm No Protectionist, but...

Starting Up in the Worst of Times

Featured

Energy Crop Conundrum

Make Way for Miscanthus

It's Show Time

The Path to Cellulosic Ethanol

Pink Sheet Persuasion

Seeking Answers

Contributions

Forest Biomass Generation in Degraded, Steep, Outcropped Ecosystems

March 2010.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

ScottMadden, Ascendant Partners join forces

Mascoma appoints Brady CEO

Laidig, Tank Connection team-up

BinMaster introduces BinLink Web-based bin monitoring

GTE names Grant as new chairman

ADF Engineering's Williamson, Hery pass exams

Stern Brothers to secure financing for SynGest's bio-ammonia project

Evolution Resources signs agreement with NCSU

Ceres provides online biopower calculator

Morbark, Strongco form Western Canada alliance

ClearFuels adds BNP Paribas to its commercial development team

Qteros names McCarthy president and CEO

Genencor receives 2009 New Product Innovation Award

Business Briefs

Columns

Federal Support for Biofuels Intensifies

Congress Should Support a Strong RES That Will Create Millions of New Jobs

I'm No Protectionist, but...

Starting Up in the Worst of Times

Featured

Energy Crop Conundrum

Make Way for Miscanthus

It's Show Time

The Path to Cellulosic Ethanol

Pink Sheet Persuasion

Seeking Answers

Contributions

Forest Biomass Generation in Degraded, Steep, Outcropped Ecosystems

March 2010