October 2013 Biodiesel Production Hits New High

U.S. production of biodiesel was 132 million gallons in October 2013, about 5 million gallons higher than production in September 2013.

Production came from 112 biodiesel plants with capacity of 2.2 billion gallons per year.

Source : EIA Monthly Biodiesel Production Report

Gevo Supplies U.S. Army With ATJ-8 Fuel for the Black Hawk Helicopter

Gevo, Inc., the world's only commercial producer of renewable isobutanol, announced that the U.S. Army has successfully flown the Sikorsky UH-60 Black Hawk helicopter on a 50/50 blend of Gevo's ATJ-8 (Alcohol-to-Jet). ATJ is a renewable, drop in alternative fuel for JP8 that addresses the Army Energy Security Strategy and Plans mandate that the Army certify 100% of its air platforms on alternative/renewable fuels by 2016. This flight marks the first ever Army Aircraft to fly on the isobutanol ATJ blend. Flight testing is being conducted at Aviation Flight Test Directorate (AFTD) on Redstone Arsenal, AL and is anticipated to be complete by March 2014. Certification programs like this are part of the Department of Defense's long-term energy strategy, as evidenced by the U.S. Navy's recent announcement of its "Farm to Fleet" program through which it will begin to blend biofuels at 10% to 50% rates with conventional jet fuel (JP-5).
This testing is being performed as part of the previously announced contract with Gevo to supply more than 16,000 gallons to the U.S. Army. "Gevo's isobutanol can be used to produce a variety of conventional military jet fuels such as JP5, JP8 and commercial aviation jet fuel. We are pleased to see that the Department of Defense is moving forward with its 'Farm to Fleet' initiative and we would like to see the alcohol-to-jet  from isobutanol be used as a blendstock for the 'Farm to Fleet' program that aims to produce renewable fuels in the USA," noted Patrick Gruber, Gevo's chief executive officer. "We greatly appreciate the U.S. Army's partnership and support in this effort. ATJ from isobutanol is a clean burning, homegrown, bio-jet fuel, and we have a potential route to deliver aviation biofuels at scale and at competitive cost for many aircraft platforms including military and commercial."
Gevo's patented ATJ fuel is truly the same as petroleum jet fuel. It is designed to be fully compliant with aviation fuel specifications and provide equal performance, including fit-for-purpose properties.

Renewable Energy Group, Inc. Agrees to Acquire Syntroleum Corporation

Renewable Energy Group, Inc. (REG) and Syntroleum Corporation announced today that they have entered into an asset purchase agreement pursuant to which REG would acquire substantially all of the assets of Syntroleum Corporation, and assume substantially all of the material liabilities of Syntroleum. The terms of the transaction call for Syntroleum to receive 3,796,000 shares of REG common stock (subject to reduction in the event that the aggregate market value of the REG common stock to be issued would exceed $49 million or if the cash transferred to REG is less than $3.2 million).

Based in Tulsa, Oklahoma, Syntroleum has pioneered Fischer-Tropsch gas-to-liquids and renewable diesel fuel technologies and has 101 patents issued or pending. Syntroleum also owns a 50% interest in Dynamic Fuels, LLC, a 75-million gallon renewable diesel production facility in Geismar, Louisiana. REG, headquartered in Ames, Iowa, owns and operates eight active biodiesel refineries in four states with a combined nameplate production capacity of 257 million gallons and distributes biodiesel through a national network of distribution terminals.

“Combining Syntroleum’s renewable and synthetic fuel technologies with REG’s expertise in biodiesel production, sales, marketing and logistics should be a positive outcome for investors in both companies,” said Renewable Energy Group, Inc. President and Chief Executive Officer Daniel J. Oh. “This will help us grow our advanced biofuel business, enhance our intellectual property portfolio, expand our geographic footprint and launch REG into new customer segments.”

”Syntroleum and its 50%-owned subsidiary Dynamic Fuels represent an attractive entry path for REG into renewable diesel,” Oh continued. “They have invested substantial resources in their Bio-Synfining technology, which enables the economical conversion of lipid-based biomass into diesel and jet fuel. Their technology and products complement our core biodiesel business.”

USDA and DOE Fund 7 Research Projects to Develop Plant Feedstocks for Bioenergy

The U.S. Departments of Agriculture (USDA) and Energy (DOE) announced yesterday $8 million in research grants to develop non-food feedstocks that can be used for bioenergy. The grants are part of a broader effort by the Obama administration to develop domestic renewable energy and advanced biofuels, providing a more secure future for America's energy needs and enhancing rural economies.

"Today's investments are a critical piece of President Obama's strategy to create a clean source of energy and advance the sustainable use of natural resources," said Agriculture Secretary Tom Vilsack. "Innovative research plays a vital role in boosting rural economies and creating jobs in rural America, and the benefits this type of research may offer is another pressing reason we need a new Food, Farm and Jobs bill passed."

Overall, the USDA and DOE projects are designed to improve biomass to be grown for biofuels-including selected trees and grasses-by increasing their yield, quality and ability to adapt to extreme environments. Researchers will rely on the most advanced techniques of modern genomics to develop breeding and other strategies to improve the crops. The research will be conducted on switchgrass, poplar and pine, among other plants.

The potential benefits of this research range from decreasing oil imports to increasing options for American farmers. Because these non-food crops will be optimized to tolerate conditions such as drought and poor soils, they can be grown on marginal lands unsuitable for food crops, thereby avoiding competition with food production. Farmers will have the option to grow bioenergy crops in addition to other existing crop choices.

Fiscal Year 2013 awardees include:

USDA-NIFA-funded

• University of Florida, Gainesville, Fla., $1,000,000
• Oregon State University, Corvallis, Ore., $1,000,000

DOE-funded

• Colorado State University, Ft. Collins, Colo., $1,385,763
• University of Georgia, Athens, Ga., $1,314,235
• University of Illinois, Urbana, Ill., $998,564
• Purdue University, West Lafayette, Ind., $863,576
• University of North Carolina, Chapel Hill, N.C., $1,543,490

The joint USDA and DOE funding program was begun in 2006. DOE's Office of Science will provide $6.1 million in funding for five projects, while USDA's National Institute of Food and Agriculture (NIFA) will award $2 million to fund two projects. Initial funding will support research projects for up to three years.

Alternative Fuels Americas Begins Jatropha Based Biodiesel Production Trials

Alternative Fuels Americas, Inc. (AFAI) announced today that it has initiated trial production runs of Jatropha based biodiesel to verify the Company's processes and procedures. The trial production runs will be conducted in 3 phases, the first of which is set to begin immediately. The Company will be using feedstock from its plantation in Tempate, Costa Rica for the first phase of production. The biodiesel produced will be used for testing and marketing purposes.

"As with every endeavor we undertake, we are testing our assumptions and capabilities before we engage in larger scale activity. This is a major milestone for us and we need to be certain that we not only produce quality biodiesel, but also that we do so within the cost structures we have imposed," stated AFAI CEO Craig Frank. "These 3 phases of trials will allow us to pinpoint issues, make the appropriate adjustments, and finalize processes that will ensure the sustainable and profitable production of biodiesel. This is yet one more step on our path to value creation."

"AFAI marked the completion of our trials this past spring", continued Mr. Frank. "During this R&D period we created and set up for implementation a wide range of operational activities, including Project Jetropha, our wild feedstock program, the signing of offtake agreements and additional projects in development. We are pleased that since we have initiated our active strategy we are moving rapidly toward growth. It is our intent to continue on this path".