January 05, 2011

INEOS Bio JV Receives $75 Million USDA Loan Guarantee for Florida BioEnergy Center

INEOS Bio and its joint venture partner, New Planet Energy, announced today that they have received a conditional commitment for a $75 million loan guarantee from the U.S. Department of Agriculture's (USDA) 9003 Biorefinery Assistance Program. Funds will be used for the construction of the world's first INEOS BioEnergy Center to be situated near Vero Beach, Florida. The BioEnergy Center will produce eight million gallons of advanced biofuel per year together with six megawatts (gross) of renewable power from biomass including yard, vegetative and wood wastes and municipal solid waste. Financing from the USDA program is provided to advance the next generation bioenergy technologies into the commercial sector.

"We are encouraged by the continued confidence and commitment the U.S. Government has shown in assisting with the commercial development of this new bioenergy technology," said Peter Williams, CEO of INEOS Bio and Chairman of INEOS New Planet BioEnergy. "These programs are providing the funds needed to enable the U.S. to achieve a leading position in the bioenergy sector through projects such as ours. As well as directly assisting construction of the INEOS New Planet BioEnergy commercial plant, the loan guarantee also represents an important step along the road to replication of this exciting new technology through INEOS Bio's licensing program."

The USDA 9003 program provides guaranteed loans for the development and construction of commercial-scale biorefineries or for the retrofitting of existing facilities using eligible technology for the development of advanced biofuels.

Site preparation and construction are underway at the BioEnergy Center, which has created 55 new jobs to date. The BioEnergy Center, slated to begin production in 2012, is anticipated to provide 175 jobs during construction and 50 full-time jobs once the facility is completed.

The heart of the INEOS Bio technology is a patented anaerobic fermentation step, through which naturally occurring bacteria convert gases derived directly from biomass into ethanol. Unlike other technologies that rely on one primary source of feedstock, the INEOS Bio process can produce ethanol and renewable energy from numerous feedstocks, including construction waste, municipal solid waste and forestry and agricultural waste, while breaking the link between food crops and ethanol production. This flexibility allows facilities, like the Florida BioEnergy Center, to be built anywhere in the world, wherever there is biomass waste, providing jobs and locally sourced renewable energy for urban and rural communities.

See Also :
INEOS Bio Picks AMEC To Construct Its BioEnergy Center

January 04, 2011

Pacific Ethanol Restarts Stockton Ethanol Plant

Pacific Ethanol, Inc. (PEI) has resumed production at the 60 million gallon per year ethanol production facility located in Stockton, CA. The first corn grind occurred on December 9th and the facility is now operating at close to operating capacity shipping ethanol and feed to local markets.

Neil Koehler, PEI’s president and CEO, stated, “We achieved our goal of successfully restarting the Stockton ethanol facility in December 2010, which we believe increases our opportunity to benefit from the commencement of the California Low-Carbon Fuel Standard this month. The Stockton facility produces low carbon renewable fuel and high value feed to local California markets. With the recent signing of the participation agreement with the California Energy Commission, the facility is eligible for payments under the California Ethanol Producer Incentive Program.”

See Also :
Pacific Ethanol And AE Biofuels Enter Into Ethanol Marketing A
Pacific Ethanol To Restart Stockton, CA Ethanol Production Facility

Ethanol Groups Propose Alternative E15 Labels

The Renewable Fuels Association (RFA) and Growth Energy have each proposed an alternative to the E15 label the Environmental Protection Agency (EPA) has proposed.

This is the label proposed by the EPA. Many, including myself, feel that the label is overly aggressive in it's warning. Just after the EPA proposed this label, I compared this label to a similar situation in the diesel market.

This is the label proposed by the Renewable Fuels Association.

This is the label proposed by Growth Energy.


















Both of the labels proposed by the ethanol groups are in my opinion preferable to the label proposed by the EPA. But to be honest, both of the proposed ethanol groups labels may not be aggressive enough in their warning. As I mentioned before, the diesel fuel market went through a similar situation just a couple of years ago.

This is the label that the EPA approved in that situation. The warning level conveyed is somewhere in the middle of that which is conveyed by the E15 label proposed by the EPA and the two labels proposed by the ethanol groups. This is more in line with what I would expect the approved label to look like. There is a need to adequately warn people so that misfueling doesn't occur but ethanol shouldn't be subjected to a higher level of warning because it isn't a product of the petroleum industry.

January 03, 2011

Petroleum Groups Ask Court to Overturn EPA Approval of E15

The National Petrochemical & Refiners Association (NPRA) today joined with two organizations to ask a federal appeals court to overturn a recent decision by the Environmental Protection Agency that authorizes the sale of gasoline with 50 percent more ethanol for late-model vehicles.

Organizations joining NPRA in the legal challenge to EPA are the International Liquid Terminals Association and the Western States Petroleum Association.

EPA’s Oct. 13 decision boosted the amount of ethanol permitted in gasoline used by cars and light trucks in the 2007 model year and later from the current 10 percent (E10) to 15 percent (E15).

NPRA and the other organizations today filed a petition asking the U.S. Court of Appeals for the District of Columbia Circuit to review and overturn the EPA decision, contending EPA violated the Clean Air Act and the Administrative Procedure Act.

The lawsuit by the groups will argue that EPA does not have authority under the Clean Air Act to approve a partial waiver that allows the use of E15 in some engines but not in others.

In addition, the lawsuit will contend that EPA based its partial waiver decision on new data submitted to the public rulemaking docket on the day before EPA announced the partial waiver, providing no time for the stakeholder review or meaningful public comment required under the Administrative Procedure Act.

NPRA and the other organizations will file more details and written arguments regarding their lawsuit in coming weeks.

“NPRA is taking this action because our members are committed to consumer protection and providing safe, efficient, affordable and reliable fuel to the American people,” NPRA President Charles T. Drevna said. “The organizations challenging EPA’s decision believe the agency has acted unlawfully in its rush to allow a 50 percent increase in the amount of ethanol in gasoline without adequate testing and without following proper procedures. As a result, we had no choice but to take this issue to court.”

NPRA and other groups have previously raised concerns about engine damage in cars, trucks, motorcycles, boats, snowmobiles, and outdoor power equipment such as lawnmowers and chainsaws that might be caused by E15.

The groups have said that while E15 is not recommended for anything but 2007 model vehicles and later under the EPA decision, many consumers will inevitably use E15 in other engines, a problem known as misfueling.

January 01, 2011

E85 Stations Continue To Increase, Reaching 2,354

The number of E85 pumps across the country finished out 2010 on a strong note, with 25 new locations added in December, bringing the total to 2,354.

I didn't keep track of the monthly totals at the beginning of the year because the numbers had somewhat stagnated and to be honest it was kind of depressing to just see a few added each month. So I can't really say what the total is for 2010.

The big change that caused the numbers to start moving again happened on June 24, 2010 when the first E85 dispensers received UL certification. As you can see by the numbers below, from May 1, 2009 through June 29, 2010, a span of almost 14 months, there was a total of 69 new E85 locations added. In the 6 months since certification, there has been 194 new locations added.

January 1, 2011 - 2354
December 1, 2010 - 2329
November 1, 2010 - 2301
October 1, 2010 - 2259
September 1, 2010 - 2235
June 29, 2010 - 2160
May 1, 2009 - 1991

There are also currently 273 blender pump locations across the country.

The current number of E85 and blender pump locations can be found at the E85 Refueling.