“The Second Generation Biofuel Producer Tax Credit Act will modernize the existing cellulosic biofuel tax credit while ensuring that taxpayers get the biggest bang for their renewable energy buck by making clear that only qualified, non-food feedstocks capable of powering America’s energy future are able to claim the credit.

“The Second Generation Biofuel Producer Tax Credit Act of 2009 (HR 3985) would: Peg the value of the second generation biofuel producer credit to the BTU content of the biofuel being produced. Expand the definition of non-food feedstocks eligible for the credit to include not just renewable cellulosic matter, but also “cultivated algae, cyanobacteria, or lemna”. Exclude fuels co-processed with a fuel derived from a nonqualified feedstock from credit eligibility. Preclude the paper manufacturing by-product commonly known as “black liquor” from credit eligibility.”

Second Generation Biofuel Producer Tax Credit Act of 2009 proposes to add algae, drop first-gen fuels from tax credits is a post from: Biofuels Digest

UK moves to close “bonkers” waste cooking oil anomaly in biofuels legislation is a post from: Biofuels Digest

Republicans said they are protesting the rushing of the bill through committee before full analysis by EPA. Domestic Fuel’s John Davis has filed a good report.

Senate climate bill proceeds with markup despite Republican boycott is a post from: Biofuels Digest

On both days, attendees will explore possible initiatives such as:  a Low Carbon Communities Program;  a Regional Energy Efficiency Center in conjunction with the Peruvian government; a Regional Wind Research Center supported by Mexico; a Regional Renewable Energy R&D Center with Chile, and a Brazilian-led program to improve the energy efficiency of low-income communities.

Energy and Climate Ministerial of the Americas to meet in DC on April 15-16, 2010 is a post from: Biofuels Digest

The Advanced Green Biofuels amendment establishes  that any feedstock that meets the greenhouse gas reduction targets in the Renewable Fuel Standard qualified under the RFS.

Biofuels feedstock neutrality amendment is added to Senate climate bill is a post from: Biofuels Digest

“The President can take action within his administration to ensure that no harm is done to the renewable fuels that are displacing dirty fossil fuels today. He can ensure that EPA uses only sound science and avoids speculative assumptions when determining the greenhouse gas emissions of biofuels.  He can take action to see that America uses even more homegrown, green energy by ensuring that even more renewable fuel is blended in our nation’s transportation mix.  And, he can take action to immediately provide the certainty for biodiesel producers that Congress intended in the energy bill of 2007. “

Grassley calls on President to help end delays, bolster existing industry on biofuels tax credits, emissions decisions is a post from: Biofuels Digest

The group found that “operating on a 20 percent blend of ethanol fuel [a vehicle] will perform better than those running on a 10 percent ethanol blend.” This would require an increase from the current “arbitrary cap on the volume of ethanol permitted in gasoline at just 10 percent.”

MLC noted that research shows “higher levels of ethanol in gasoline…can increase fuel economy, boost efficiency of fuel use and reduce cost of [vehicle] operation.” Findings showed that the transition to E15, would also be “necessary if the nation is to meet the schedule for biofuels set forth in the Energy Independence and Security Act of 2007.” Meeting this standard ensures forward motion on an issue critical to our national security.

Midwest Legislative Conference issues resolutions in support of E15 and higher ethanol blends is a post from: Biofuels Digest

The Energy Opportunity promises sunny days ahead

If July and August were the “Summer of Algae”, then September and October are surely “the Indian Summer of Ethanol” for there has been unexpectedly warm results from the sector, and focus on the long-term “energy opportunity” inherent in the climate bill should give even more seasonal cheer to an industry battered by a plentitude of critics and a shortage of working capital.

In Washington, Secretary of Energy Steven Chu focused his remarks yesterday to the Senate on the climate bill – not on the usual doom-and-gloom of the CO2 data – but on “the energy opportunity.”

“EIA found that, globally,” Ch said, “the cumulative investment in wind turbines and solar photovoltaic panels from now through 2030 could be $2.1 trillion and $1.5 trillion, respectively.  The policy decisions we make today will determine the U.S. share of this market.  And many additional dollars, jobs and opportunities are at stake in other clean technologies.

“The United States, meanwhile, has fallen behind.  The world’s largest turbine manufacturing company is headquartered in Denmark.  99 percent of the batteries that power America’s hybrid cars are made in Japan.  We manufactured more than 40 percent of the world’s solar cells as recently as the mid 1990s; today, we produce just 7 percent.

“When the starting gun sounded on the clean energy race, the United States stumbled.  But I remain confident that we can make up the ground.  When we gear up our research and production of clean energy technologies, we can still surpass any other country.

“The most important element of this bill is that it puts a cap on carbon emissions that ratchets down over time.  That critical step will drive investment decisions toward clean energy.

“Imagine, for example, that you own a power company and are considering building more generating capacity.  Building a new coal-fired power plant or a new nuclear plant is a serious, multi-billion dollar investment.  And these investments could last at least 60 years.  If you knew that carbon emissions had to decrease, would you build a coal plant without carbon capture and storage technology?  Would the nuclear plant look more attractive?  Would you consider investing in wind and solar?

“On-again, off-again incentives will not drive the level of clean energy investment we need.  A cap on carbon will give the energy industry the long-term direction and the certainty it needs to make appropriate technology and capital investment decisions.”

Rising numbers on “we’re not dead yet” ethanol industry suggest that the Secretary has a strong point. Yesterday, Valero astonished the financial markets with the unlikely announcement that it had swung into a third-quarter loss on a refinery impairment loss, but that its star investment was a $49 million profit from its seven ethanol plants. According to MarketWatch, “Valero said its retail and ethanol segments posted “outstanding” results. Its ethanol business earned $49 million of operating income in the third quarter, more than double the second-quarter results.”

In other news of note, US gasoline prices are rising again. According to AAA, U.S. retail gasoline prices were $2.67 a gallon in the past week, up from $2.50 in September. Last October, the average price was $2.66 per gallon.

According to WCFCourier.com, “Processors say several factors are working in their favor now. Crude oil prices are on the rise — a barrel that cost little more than $30 at the end of 2008 was worth more than $82 Oct. 22 — and ethanol usually follows. Corn prices are lower than last year and fairly stable. Compared to the price of oil, ethanol is cheap enough that refiners are blending ethanol, even if they aren’t required to do so. Most importantly, processors say they have learned from past mistakes. Gone are the days of extended corn contracts without a guarantee of income to cover expenses.”

According to the Jamestown (ND) Sun: “The top officials of a southwestern North Dakota ethanol plant [Red Trail Energy] say it has overcome a year of financial struggles and is heading toward a profit.”

According to the Chicago Board of Trade: “November CBOT Ethanol futures prices last week rallied sharply for the fifth consecutive week, closing up 13.7 cents (+7.4%) at $1.985 per gallon and posting a new 13-month high.  The EIA this Friday will release the monthly ethanol figures for August.  Last month’s report showed that U.S. ethanol production in July rose sharply by 8.4% m/m to a new record high of 948 million gallons.

Also, BP announced that it would enter the cellulosic ethanol industry in Brazil by 2013.

But not every sector is reporting news of great cheer. According to the JournalStar, “Nebraska has lost the last commercial operation of its infant biodiesel industry, at least temporarily. Northeast Nebraska Biodiesel LLC has stopped making biodiesel fuel from soybeans at its plant in Scribner.”

And Biodiesel Magazine reports that “A foreclosure motion begun by plant creditors was temporarily put on hold in late 2008 when Tri-City Energy announced a possible cash infusion from a new investor. That effort failed however, and last week, Maas Companies listed the court-ordered auction.”

Biofuels recovering as “moment of energy opportunity” arrives is a post from: Biofuels Digest

EPA Administrator Lisa Jackson and Secretary or Energy Steven Chu were among those testifying on the first day.

Administrator Jackson said, in part: “Even as the President and the members of his Cabinet move forward under existing authority, we continue urging Congress to pass a new clean-energy law.  Only new legislation can bring about the comprehensive and integrated changes that are needed to restore America’s economic health and keep the nation secure over the long term.  First, the legislation would transform the American economy from one that is relatively energy inefficient and dependent on highly-polluting energy production to one that is highly energy efficient and powered by advanced, cleaner, and more domestically-sourced energy.  ?Second, the legislation would bring about that transformation at a cost of less than 50 cents per day per American household in 2020.  Third, the finding that regional cost differences would be small applies to the Senate bill just as it did to the House legislation.

Secretary Chu said, in part: The world now realizes that its current level of greenhouse gas emissions is unsustainable.  In the coming years, there will be a vigorous effort to limit carbon pollution that will require a massive deployment of clean energy technologies.  The only question is – which countries will invent, manufacture, and export these clean technologies and which countries will become dependent on foreign products? China has already made its choice.  China is spending about $9 billion a month on clean energy.  It is also investing $44 billion by 2012 and $88 billion by 2020 in Ultra High Voltage transmission lines.  These lines will allow China to transmit power from huge wind and solar farms far from its cities.  While every country’s transmission needs are different, this is a clear sign of China’s commitment to developing renewable energy.

Republicans, who are generally opposed to the bill although less so to climate change legislation, said they would offer and alternative to cap-and-trade legislation.

Hearings begin on the US Climate bill; remarks by EPA Administrator Jackson, Energy Sectretary Chu is a post from: Biofuels Digest

The protein is a co-product of PetroAlgae’s core bio-crude (renewable fuel feedstock) production system, using a variety of microcrops but currently commercializing a production system based on lemna. The announcement clears the way not only for PetroAlgae operations in Indonesia, but in neighboring countries which would utilize Indonesia as a secondary market for the protein co-product.

Indonesia OKs PetroAlgae protein co-product as animal feed and for importation is a post from: Biofuels Digest