May 28, 2010

House Passes Biodiesel Tax Credit

Today the House of Representatives passed H.R. 4213, the American Jobs and Closing Tax Loophole Act, that contained a one year retroactive extension of the biodiesel tax credit. The bill, which just yesterday appeared to be stalled till after the Memorial Day recess, passed by a vote of 215-204.

The Senate is expected to consider the bill after the recess.

May 27, 2010

Vote on Biodiesel Tax Credit Delayed

The vote on the bill containing the biodiesel tax credit and other agricultural related issues has been delayed till after the Memorial Day recess. The biodiesel tax credit expired at the beginning of the year and the biodiesel industry has been pushing lawmakers to reinstate the credit before going on recess.

Representative Stephanie Herseth Sandlin, Blue Dog Coalition co-chairwoman, said Thursday that given the timetable the House is on - they’ll have to grapple with the tax extenders measure after Memorial Day. Herseth Sandlin says part of the problem is leadership was shy of the votes needed to pass the bill.


Source : Hoosier Ag Today

Study Finds That Ethanol Production Methods Have Become More Efficient

A new University of Illinois at Chicago study of facilities that produce most of the nation's ethanol found that the energy needed to make a gallon of the corn-based fuel decreased on average by about 30 percent within the past decade.

Steffen Mueller, principal research economist at UIC's Energy Resources Center, surveyed the nation's 150 "dry mill" ethanol plants -- the type that produce about 85 percent of the ethanol for energy use -- between November 2009 and January 2010.

The findings may prove useful to state and federal energy policy makers studying the pros and cons of fuels based on their "full life-cycle" -- the total energy needed to create a fuel compared to its energy output, the greenhouse gases emitted during production, the water used in production, and other factors.

"Policy makers rightfully pay attention to life cycle greenhouse gas emissions of fuels," said Mueller. "Biofuel refineries, including corn ethanol plants, are in a rapid innovation phase."

He said his survey shows that adoption of new technologies reduces energy production needs.

"The challenge for policy makers will be to keep up with these developments so that regulations are meaningful and reflect state-of-the-art industry practices," he said.

Mueller received 90 responses -- about 60 percent of the plants contacted. But those responding produce about 66 percent of the 35 billion or so liters of ethanol distilled yearly in the U.S.

Mueller said the high response should provide a sound statistical basis for policy makers, environmental groups, and researchers who will help design new energy-efficient and eco-friendly fuel production methods.

Mueller found plants use 28 percent less thermal energy -- mostly natural gas, but some coal, biomass and landfill gas -- and 32 percent less electricity to turn corn into ethanol. The savings may be due to more efficient equipment being used by new plants and older ones undergoing energy efficiency retrofits, he said.

The 24-question survey was developed with ethanol industry input. Senior or operations plant managers at all 150 U.S. dry mill plants operating during 2008 were contacted. The web-based survey was created by the University of Illinois Survey Research Laboratory, which also collected the data.

Mueller's findings were compared to the last comprehensive survey taken in 2001, commissioned by the U.S. Department of Agriculture. Since that time there has been a nearly 10-fold increase in the number of U.S. ethanol plants.

The findings are published online in the May 15 issue of Biotechnology Letters. The study was funded by the Illinois Corn Marketing Board.

Source : University of Illinois at Chicago

First Ever Economic Assessment of Canadian Renewable Fuel Plants Released

The Canadian Renewable Fuels Association today released the first-ever comprehensive third party economic impact assessment of renewable fuels investments in Canada. The assessment conducted by econometric firm Doyletech Corporation, concluded that, “the grand total of the annual positive economic impact of renewable fuels is $2.013 billion.”

The report studied 28 ethanol and biodiesel plants across Canada and added that there were major benefits from renewable fuels in “rural re-vitalization, increased oil exports from western Canada, industrial development, and valuable options for re-balancing fuel “mix”.”

The economic impact of the construction phase of renewable fuels plant was assessed to include:

• A total direct investment of $2.326 billion.
• The total net economic activity of $2.949 billion, including $100.2 million to municipal governments, $492.1 million to provincial governments, and $679.9 million to the federal government.
• And the creation of 14,177 direct and indirect jobs during the respective construction periods.

The economic impact of operating the 28 Canadian renewable fuels plants was assessed to include:

• The production of a total of 2.25 billion litres of renewable fuels annually.
• A net annual economic benefit of $1.473 billion to the Canadian economy across Canada, including $14.1 million to municipal governments, $108.8 million to provincial governments, and $111.8 million to the federal government.
• The creation of a net 1,038 direct and indirect jobs annually.
• An estimated annual benefit of $540 million in additional oil exports that are possible because of western Canada biofuels production (using value of CDN $80/barrel).
• The grand total of the annual positive economic impact of renewable fuels is accordingly $2.013 billion.

“Even making allowance for the opportunity costs of alternate investments, and the opportunity costs of alternate feedstock sales, renewable fuels plants in Canada represent a positive net economic benefit,” the report concludes.

Source : Canadian Renewable Fuels Association (CRFA)

May 22, 2010

Marine Corps Logistics Base Albany Announces Navy's First Landfill Gas Project

Chevron Energy Solutions, a unit of Chevron Corporation, and the Marine Corps Logistics Base (MCLB) Albany announced on May 20, 2010 the start of construction for the Department of Navy's first landfill gas cogeneration project.

The project will produce 1.9 megawatts of renewable electric power and steam by burning landfill gas collected from a nearby landfill. Chevron Energy Solutions will also complete industrial lighting retrofits in 82 buildings and expand the existing energy management control system. When combined with the cogeneration project, these measures will reduce the base's purchase of utility power and reduce MCLB's carbon emissions by 19,300 tons annually, equivalent to removing 16,000 cars from the road.

Chevron Energy Solutions developed and designed the project and will maintain the landfill gas-to-energy facility, pipeline and landfill gas processing equipment. The new facility will house a dual-fuel engine generator, a stack heat recovery steam generator and two dual-fuel boilers. The primary equipment can operate on landfill gas or natural gas, which provides energy security benefits. MCLB's use of renewable power will increase to 19 percent, which exceeds the EPAct of 2005 and Energy Independence and Security Act of 2007 mandate of 7.5 percent renewable power use by 2013.

Dougherty County will extract and sell the landfill gas to MCLB from the Fleming/Gaissert Road Landfill, which receives approximately 100,000 tons of municipal solid waste each year. The biological decomposition of the waste generates landfill gas that is approximately 50 percent methane gas by volume.

The project is expected to be completed by April 2011.