EPA Finalizes E15 Pump Labeling Requirements

The U.S. Environmental Protection Agency (EPA) issued fuel pump labeling and other requirements for gasoline blends containing more than 10 and up to 15 percent ethanol, known as E15. These requirements will help ensure that E15 is properly labeled and used once it enters the market.

The new orange and black label must appear on fuel pumps that dispense E15. This label will help inform consumers about which vehicles can use E15. This label will also warn consumers against using E15 in vehicles older than model year 2001, motorcycles, watercraft, and gasoline-powered equipment such as lawnmowers and chainsaws.

Over the past year, EPA issued two partial waivers under the Clean Air Act that in sum allow E15 to be sold for use in model year 2001 and newer cars and light trucks. EPA based its waiver decisions on testing and analysis showing that these vehicles could continue to meet emission standards if operated on E15. However, EPA does not mandate the use of E15, nor has the agency registered the fuel, which is required before E15 can be legally sold for use in conventional vehicles.

The E15 pump label requirements, developed in coordination with the Federal Trade Commission (FTC), adopt elements of FTC’s existing labels for alternative fuels to promote consistent labeling. The rule also includes a prohibition against misfueling with E15; a requirement to track E15 and other fuels as they move through the fuel supply chain so that E15 can be properly blended and labeled; and a quarterly survey to help ensure that gas pumps dispensing E15 are properly labeled. In addition, it modifies the Reformulated Gasoline (RFG) Program to allow fuel producers to certify batches of E15 as complying with RFG standards.

This action will help to further reduce the risks of potential misfueling that could result in damage to the vehicle or equipment and in associated emission increases that pose threats to human health and the environment.

DuPont Danisco Cellulosic Ethanol (DDCE) Takes Next Step Toward Building A Commercial Scale Cellulosic Ethanol Plant

DDCE, a wholly-owned subsidiary of DuPont, has entered into an agreement to purchase a parcel of land in Nevada, Iowa, adjacent to Lincolnway Energy LLC’s conventional ethanol plant. It is DDCE’s next step toward building one of the world’s first commercial-scale biorefineries to produce fuel-grade ethanol from cellulose, in this case stover – dried cobs, stalks and leaves left after grain harvesting. DDCE is successfully producing cellulosic ethanol at its pre-commercial facility in Vonore, TN, and is scaling up the process to globally license its end-to-end production system.

“We’re producing cellulosic ethanol sustainably and economically today, and the market is ready and interested to deploy large-scale biorefineries,” says Joe Skurla, CEO of DDCE. “We are purchasing the site next to Lincolnway because it will meet the business needs for our project, and provides potential economic and environmental synergies for both facilities.” The DDCE process is designed to make fuel from a variety of cellulosic biomass. This includes wheat and corn stover, and energy crops, including switchgrass.

DDCE also is launching its 2011 Stover Collection Program to enable a cost-effective supply of stover for the biorefinery project. The company is working closely with local grain producers to obtain commitments and collect thousands of tons of stover from Iowa fields this fall. DDCE is collaborating with Pioneer Hi-Bred, also a DuPont Company, and Iowa State University, to establish best practices in harvesting, storage, and transportation, and assure the agronomic and environmental integrity of cornfields. The cellulosic ethanol industry will provide opportunities for farmers to add value to their croplands.

NCERC to Install Arisdyne’s Controlled Flow Cavitation System in Research Operations

The National Corn-to-Ethanol Research Center (NCERC) has agreed to license and support a Controlled Flow Cavitation (CFC) system from Arisdyne Systems, Inc. Arisdyne’s CFC system will be offered as an adjunct test feature of NCERC’s pilot scale ethanol test facility on the campus of Southern Illinois University Edwardsville (SUIE).

Arisdyne’s patented cavitation methods and devices were originally tested at NCERC in June and July of 2009 and early trials demonstrated ethanol yield improvements of 2-3% under low flow rate, 5 GPM, conditions. Since 2009, over five full-scale plants have installed and are testing CFC systems at flow rates of 600 -1800 GPM. These commercial tests have shown potential yield improvements of 3-5% using corn, milo, or a mix of both feedstocks.

“Arisdyne is extremely pleased that NCERC provided opportunities to advance ethanol’s position as a clean, alternative energy,” said Dr. Peter Reimers, president and CEO of Arisdyne. “We are most grateful to the many industry participants and to NCERC for the support they have provided in helping to verify the effectiveness of our technology in the laboratory and at full commercial scale. Further research involving the CFC system is expected to help the ethanol industry secure better margins, reduce energy consumption per gallon of fuel produced, and provide a pathway to hybrid production of ethanol from grain and other related fiber materials.”

“It’s small, it’s simple, it’s durable,” said John Caupert, managing director of NCERC. “That is what this industry needs. We are working on solutions that convert current starch-based ethanol plants into ‘Generation 1.5’ ethanol plants that convert not only starch but also cellulosic feedstock.”

Leading technologies like Arisdyne’s significantly reduces energy consumption, minimizes reliance on foreign-sourced oil, results in higher nutrition DDGS, and opens the doors for other related savings. With recent process enhancements, NCERC’s ethanol plant can get more ethanol from the same bushels of input grain.

Coskata Signs Letter of Intent for the Engineering, Procurement and Construction of its First Commercial Facility

Coskata, Inc., a developer of technology for the production of renewable fuels and chemicals, announced today that it has issued a Letter of Intent with Fagen, Inc. for engineering, procurement and construction services for the construction of its commercial cellulosic ethanol facility in Boligee, Alabama, that will be designed around the Coskata technology.

Fagen, Inc., the U.S. leader in construction of first-generation bio-refineries, and Harris Group Inc., a global leader in advanced biofuels engineering, will lead an EPC process that will include in its scope the project detailed design, procurement, construction and commissioning.

“After a rigorous selection process, we are pleased to announce that Fagen and Harris Group will work together to provide a facility that will be unmatched in quality, cost, and time to completion,” said William Roe, chief executive officer for Coskata, Inc. “We are confident that together with Fagen and Harris Group, we will demonstrate the value potential and long-term benefits of the Coskata technology in this exciting project.”

Coskata received a conditional commitment for a loan guarantee from the United States Department of Agriculture, and is working on the details that will be necessary to close the financing for the project. The facility will convert sustainably harvested wood biomass into ethanol, a high-octane renewable fuel, and is expected to bring approximately 300 construction jobs and 700 direct and indirect jobs to Greene County, Alabama.

“Our company has been extensively involved with ethanol plant construction, having built over half the ethanol plant production in the United States,” said Ron Fagen, Chairman of Fagen, Inc. “We are excited to work with Coskata, involving the next generation of ethanol production technology, and the continued drive toward locally produced biofuels. We look forward to excellent relations with the citizens and officials of Greene County, Alabama.”

“Harris Group is proud to have had a great working relationship with Coskata for nearly three years,” said Jim Gabriel, President of Harris Group Inc. “Our intimate familiarity with Coskata’s technology and our extensive experience in advanced biofuels commercialization will allow us to deliver a facility that can be replicated many times over around the world.”

Department of Energy to Release Oil from the Strategic Petroleum Reserve

U.S. Energy Secretary Steven Chu announced today that the U.S. and its partners in the International Energy Agency have decided to release a total of 60 million barrels of oil onto the world market over the next 30 days to offset the disruption in the oil supply caused by unrest in the Middle East. As part of this effort, the U.S. will release 30 million barrels of oil from the Strategic Petroleum Reserve (SPR). The SPR is currently at a historically high level with 727 million barrels.

"We are taking this action in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery," said Energy Secretary Steven Chu. "As we move forward, we will continue to monitor the situation and stand ready to take additional steps if necessary."

The United States has been in close contact with oil producing and consuming countries about disruptions to the international oil market that could affect the global economy. The situation in Libya has caused a loss of roughly 1.5 million barrels of oil per day - particularly of light, sweet crude - from global markets. As the United States enters the months of July and August, when demand is typically highest, prices remain significantly higher than they were prior to the start of the unrest in Libya.

The Administration will continue to consult closely with other consuming and producing countries in the period ahead. The decision today is intended to complement the production increases recently announced by a number of major oil producing countries. The United States welcomes those commitments and encourages other countries to follow suit.