USS Ford Conducts Operational Transit on Algae Fuel Blend

USS Ford (FFG 54) successfully transited from the ship's homeport in Everett, Wash., to San Diego, March 2, using 25,000 gallons of a 50/50 algae-derived, hydro-processed algal oil and petroleum F-76 blend in the ships LM 2500 gas turbines.

USS Ford's transit on the algal blend marks the first demonstration of the alternative fuel blend in an operational fleet ship.

"We've done basically every range of research vessel we could test: the experimental riverine command boat; the Naval Academy's yard patrol; a landing craft utility, a landing craft air cushion amphibious, and self defense test ship," said Richard Leung, Naval Sea Systems Command (NAVSEA) Navy Fuels engineering manager. "Each test has brought us a little closer to the upcoming Green Strike Group demonstration set for later this year."

Meeting the secretary of the Navy's call for a drop-in fuel replacement, no changes were required to the infrastructure of the ship or fueling pier for the test. The blended fuel was stationed on a barge in Puget Sound off Bremerton, Wash., and immediately available to the Ford for testing.

"We didn't embark any personnel or instrumentation for the transit because we wanted to minimize impact to the ship's normal operations and because we weren't conducting the same quantitative tests and analysis we've done previously," said Leung. "Instead, we provided the ship's engineers a list of fuel and engine performance system questions and parameters, so they could provide feedback on how the ship performed using the blend as compared to its typical fuel."

The ship burned all 25,000 gallons during the transit, and according to Leung, feedback from the ship's engineers was favorable.

"The crew reported no change in their typical procedures when receiving, handling, or processing the biofuel, and said operational performance of the fuel system and gas turbine engines on the blend was almost identical to operations on traditional F-76," said Leung.

"Having feedback from the Ford's engineers is extremely useful as we move forward with validating the algal oil blend, and as we prepare for the upcoming Green Strike Group demonstration later this year," said Greg Toms, NAVSEA technical warrant holder for Fuels and Lubricants. "We'll again be limited on the data we can collect during that event and will ask similar questions to continue measuring operational user feedback."

NAVSEA's alternative fuels efforts help the Navy increase energy security, safeguard the environment, and support the secretary of the Navy's goals to demonstrate a green strike group by 2012, deploy the "Great Green Fleet" in 2016, and obtain 50 percent of the Fleet's liquid fuel from alternative sources by 2020.

The Andersons Enters into Purchase Agreement for Iowa Ethanol Plant

The Andersons, Inc. announced today the signing of an agreement to acquire an ethanol production facility in Denison, Iowa from its owners, the Amaizing Energy Denison LLC and Amaizing Energy Holding Company, LLC. The transaction, which remains subject to several contingencies, is anticipated to close in the second quarter.

If acquired, the plant would be owned by The Andersons Denison Ethanol LLC, a wholly-owned subsidiary of The Andersons, Inc.

"As our first ethanol plant west of the Mississippi, this facility provides us with geographic diversity into some of the best corn ground in the country," says Neill McKinstray, President, Ethanol Group. "This purchase enables us to expand our ethanol production, marketing and services into a new region providing arbitrage and risk management opportunities with the three existing plants we manage while leveraging existing administrative staff to a fourth plant. With much of the same technology in all four plants, we expect to bring additional efficiencies to drive down our cost per gallon, and maximize returns to shareholders as we have successfully demonstrated during the past five years."

CEO Mike Anderson, adds, "This is a well-respected, well-run organization that brings with it a solid customer base in a geographic area that we are looking forward to serving. This ethanol facility enables us to offer our grain marketing expertise and the associated services to grain producers in Iowa and fits well with our existing presence as an investor in the Iowa Northern Railway Company and our merchandising relationship with Lansing Trade Group."

The operations consist of an ethanol facility with an adjacent 2.7 million bushel grain terminal, both with direct access to two Class 1 railroads in Iowa. The ethanol plant is a dry mill operation with a run rate of 55 million gallons per year.

Sam Cogdill, Chairman and CEO of Amaizing Energy, stated that the proposed sale will address the liquidity concerns of Amaizing Energy's membership, while retaining the economic benefits the Denison facility has in the local area.  

"Our investors committed to Amaizing Energy to earn a good return on their investment and to further local economic development and we feel great about having met both of those goals," said Cogdill. "Placing Amaizing Energy on the market while it was a profitable operation has allowed it to reach a fair deal with a great company who we know will operate our plant properly."

BioProcess Algae and Green Plains Renewable Energy Break Ground on Five Acre Production Facility

BioProcess Algae LLC and Green Plains Renewable Energy, Inc. announced that they will start construction of BioProcess Algae's five acre production facility at Green Plains' ethanol plant in Shenandoah, Iowa. The project will be comprised of a combination of at scale Grower Harvester bioreactors and a plant to further dewater and process the algae into finished product. The horizontal reactors have been successfully running outdoors since the fall of 2011 and this marks the next step in the project to commercialize algae focused on markets for animal feed, fuel, omega-3 products and high-value nutraceuticals.

"After a successful rollout of the horizontal reactors at full commercial scale, we are eager to move forward with this project producing meaningful quantities of dried wholesale algae for use in products now," said Todd Becker, President and Chief Executive Officer of Green Plains. "This new phase will mark the successful transition to a larger footprint located adjacent to our Shenandoah, Iowa ethanol plant which will provide the basic inputs the bioreactors need: carbon dioxide, warm water and heat."

"Our technology has successfully brought algae directly into the sunlight using limited inputs while increasing growth rates," says Tim Burns, Chief Executive Officer of BioProcess Algae. "We continue to work with potential strategic customers including major food, animal feed, energy and pharmaceutical companies around the world," continued Burns. "Often times, this is the first access they have had to larger quantities of wholesale algae. Our goal is to produce algae in a cost effective manner that can be used as the customer sees fit."

BioProcess Algae Grower Harvester bioreactors located in Shenandoah, Iowa have been continually running since their Phase I launch in October 2009.

ZeaChem Begins Core Facility Operations at Demonstration Plant in Boardman, Oregon

ZeaChem Inc. today announced it has completed construction of the core facility for its new integrated demonstration biorefinery in Boardman, Oregon. Construction of this core project was completed on schedule, with no lost time or reportable accidents, and significantly under budget. The core facility created 50 construction jobs and will employ 25 full-time operations staff in the region.

The core will produce the intermediate chemicals acetic acid and ethyl acetate, which are high-value products for applications including paints, lacquers and solvents. ZeaChem will sell bio-based chemicals to commercial and industrial customers seeking renewable and cost-competitive alternatives to petroleum-sourced chemicals.

“Beginning operations at the core facility is another indication that ZeaChem continues to successfully execute its strategic roadmap,” said Jim Imbler, president and chief executive officer of ZeaChem. “Our phased development approach minimizes risk by allowing us to produce marketable products as we scale up our biorefining operations. We will continue to build out our biorefinery platform to produce a broad portfolio of sustainable and economical chemicals and fuels derived from cellulosic biomass.”

ZeaChem is further developing its integrated biorefinery through implementation of a second project to add the capability of using cellulosic biomass on the front end and converting ethyl acetate into ethanol on the back end. This separate “bookends” project is currently underway and supported by a $25 million grant from the U.S. Department of Energy (DOE). Once operational in 2012, it will result in the production of up to 250,000 gallons per year (GPY) of cellulosic ethanol.

The company is now developing commercial biorefineries for the production of advanced biofuels and bio-based chemicals.

Headwaters Incorporated Announces Sale of Its 51% Ownership in Blue Flint Ethanol LLC

Headwaters Incorporated today announced that Great River Energy has acquired full ownership of Blue Flint Ethanol LLC, an ethanol biorefinery located in Underwood, ND, from Headwaters Ethanol Holdings LLC, a subsidiary of Headwaters Incorporated. Prior to this acquisition, Great River Energy owned 49 percent of Blue Flint Ethanol LLC and Headwaters Ethanol Holdings owned 51 percent.

Great River Energy is one of the nation’s largest generation and transmission cooperatives. It was the first utility in the U.S. to locate an agricultural processing facility next to a coal-fired power station. The Blue Flint biorefinery purchases process steam from Great River Energy’s Coal Creek Station facility. In doing so, Blue Flint Ethanol, the joint venture between Great River Energy and Headwaters, was able to avoid the cost of building and operating a separate boiler unit. This helped make Blue Flint Ethanol one of the most cost effective, energy efficient, and environmentally friendly ethanol plants in the country.

"We were pleased to have worked with Great River Energy over the past five years in building and operating an exemplary biorefinery. They have been an excellent partner for us," said Donald P. Newman, Headwaters' Chief Financial Officer. "Under the terms of the agreement, effective January 1, 2012, Headwaters received approximately $18.5 million in cash proceeds. Headwaters intends to use the net proceeds from the sale to reinvest in assets of its business and to strengthen its balance sheet."

Blue Flint Ethanol LLC will continue to operate as a wholly-owned independent subsidiary of Great River Energy.