New Mexico Center of Excellence receives $1.1 million to advance to pond stage in algae biodiesel research
July 25, 2008
In New Mexico, the Center of Excellence, based in Carlsbad, has received about $1.1 million of $3.5 million in total disbursements from the New Mexico Energy and Innovation Fund, to fund its research on algae biodiesel production. The Center received $1 million last year, and center chairman, state representative John Heaton, said that , “Of all the algae research going on in the United States, we believe we are moving the most rapidly in terms of getting it to the market.” The Center is partnering with Los Alamos National Laboratory and New Mexico State University in its research, which will move from microalgae strain identification to pond development.
New Mexico background
The Public Service Company of New Mexico (PNM) has issued an RFP to expand the use of renewable energy in its portfolio of energy sources, including biofuels. PNM is required under state law to generate 6 percent of its power from renewable sources, increasing to 20 percent in 2020, and seeks to diversify its source mix with additional solar, wind, geothermal and biomass sources. The company said that it hopes to offset natural gas prices by switching to biofuels, and said that it seeks renewable resources that will be available no later than 2011.
The Center for Excellence for Hazardous Materials Management in Carlsbad said that it is less than two years from a major algae oil production demonstration using five strains of algae that have been undergoing research at the center since 2006. The researchers have focused on brine-based algae because of their ability to thrive in salty water and other conditions unsuitable for cultivation of other food crops. The team believes that they can achieve production of up to 8,000 gallons per acre.
Earlier this year, construction has halted on the 15 Mgy Clovis Biodiesel project due to financing issues. The $18 million plant was 80 percent complete and scheduled to be finished this month, but management now says that completion is six to eight months away. Project owners Ares Blue Sun blamed the run-up on soy prices and Blue Sun’s inability to close a public offering for the delay.
Previously, ConAgra announced that it was canceling its proposed 100 Mgy corn ethanol project in Clovis due to depressed economic conditions and rising building costs. The $200 million project also ran into resident opposition because the plant site bordered the town.
The ConAgra plant had been scheduled for an additional hearing by the state Environmental Improvement Board. The Environment Department previously approved the plant, but local residents objected to the location of the plant on the edge of town. The EIB ordered the hearing after it was disclosed that notices to residents did not properly disclose the distance from the plant to the town limits. The additional hearing will be held before February.
American Renewable Fuels plans to construct a 75 Mgy biodiesel facility in Clovis Industrial Park, which would commence operation in September 2009. Abengoa operates a 27 Mgy corn ethanol facility in the area which last year it put up for sale, saying it wanted to concentrate on its larger facilities and cellulosic ethanol developments.
Farm Foundation report cities biofuels, demand growth and falling dollar for food price rise
July 24, 2008
The non-partisan Farm Foundation released a report on the forces driving food price increases, citing “global changes in production and consumption of key commodities, the depreciation of the dollar, and growth in the production of biofuels.”
The report said that “based on existing research, it is impossible to say whether price levels have been influenced by speculative activity, and added that “Another side of the higher commodity price story that has gotten relatively little attention is the potentially large supply response that could result as farmers in developing countries increase production and productivity. Higher prices could induce these farmers to purchase and use inputs such as improved seeds and fertilizer, which would lead to substantial increases in productivity and economic gains.”
Cow manure could offset 4 percent of US GHGs, power 9 million homes: report
July 23, 2008
The Institute of Physics’ Environmental Research Letters will publish a paper tomorrow: ‘Cow Power: The Energy and Emissions Benefits of Converting Manure to Biogas’, that concludes that anerobic digestion of cow manure could reduce up to 4 percent of US greenhouse gas emissions and provide 100 billion kilowatt hours of electric power, enough for 9 million homes. The full article will be available tomorrow here
Recently, researchers at the National Institute of Standards and Technology have completed the first analysis of processing necessary to convert pig manure into a transport or heating fuel. The study used a pig manure based oil created by a team at the University of Illinois Urbana-Champaign that used heat and pressure to transform the manure into oil. NIST found 83 major compounds in the oil including a 15 percent water content and sulphur, both of which would need to be removed to make a feasible fuel.
In Texas, Environmental Power will break ground next week on a second manure-to-bioenergy plant which will be operated by its Microgy subsidiary. The plant will process waste from 10,000 cows into 635 billion BTUs of energy, enough to heat 11,000 homes for a year and replacing the equivalent of 4.5 million gallons of conventional liquid fuel. The Rio Leche facility will be constructed in Dublin and is scheduled for completion by the end of 2009. The firm’s Huckabay Ridge plant opened in Stephenville in 2008, and also handles waste from 10,000 cows. Completion is expected in late 2009.
Panda Ethanol is also on track to open a 100 Mgy ethanol plant in Hereford later this year that will gasify 1 billion pounds of manure to provide its power. The 40 foot high pile of manure feedstock will be housed in a barn. By co-locating the ethanol plant with cattle feedlots, the companies will be able to sell wet distillers grains, compared to investing in a drying process as Midwestern corn ethanol plants typically do. The CEO of Panda said that it also intends to earn and sell carbon credits obtained at its 115 Mgy ethanol plant in Hereford, Texas. The company said that the reductions and resulting emissions credits will come from using a cow manure power system in place of a traditional natural gas supply to power the ethanol distillation process.
Recently, Panda canceled a 100 Mgy ethanol plant that was scheduled for construction near Wallace. Last month, the company received the air quality permit for its 115 Mgy ethanol plant in Muleshoe. The Muleshoe plant will utilize up to 500,000 tons of cattle manure per year to generate biogas that will be used for steam generation.
FAO debuts world soil database to identify carbon sink, biomass cultivation opportunities
July 22, 2008
In Italy, the FAO announced a new Harmonized World Soil Database that would improve knowledge of current and future land productivity as well as the present carbon storage and carbon sequestration potential of the world’s soils. Derived from the soil database, FAO said it has produced a global Carbon Gap Map that allows for the identification of areas where soil carbon storage is greatest and the physical potential for billions of tons of additional carbon to be sequestrated in degraded soils.
The world’s soils hold more organic carbon (1500 Gt) than the atmosphere that contains about half this amount as CO2 (720 metric tons), and the vegetation (600 metric tons) combined. The HWSD provides improved soil information worldwide particularly needed in the context of the Climate Change Convention and post Kyoto Protocol instruments for soil carbon measurements and carbon trading. The database and viewer are available for download here.
FAO background
In Rome, the UN Food and Agriculture Organization said that they are proceeding with planning the Global Forest Resources Assessment, scheduled for 201, which will use remote sensing to create a baseline of data on deforestation, afforestation, and natural forest expansion since 1990.
The project will establish a framework and methodology for monitoring forest resources and rates of change, as well as provide a gateway for access to imagery as well as a reporting and analytic mechanism for countries to assess their own forest and land-use change status.
The UN Food and Agriculture Organization said that World Food Day, celebrated on October 16th this year, would have a theme of “World Food Security: the Challenges of Climate Change and Bioenergy”. The FAO will hold special events throughout the week of October 14th, including symposia, roundtable discussions, concerts and a meeting of the Committee on World Food Security.
At the UN Food Summit in Rome, “Everyone complained about other people’s protectionism — and defended their own,” according to the New York Times. The emergency gathering of world leaders teetered on the brink of farce as Zimbabwe’s Robert Mugabe hectored listeners with an anti-colonialist outburst and the president of Iran, “talked about the need to inject religion into food politics” in the Times’ memorable take. It became obvious to observers by the end of Wednesday’s sessions that progress on Secretary-General Ban-KI Moon’s $30 billion food shortage target would be minimal. The roughest treatment for biofuels was handed out by Brazilian President Inacio Lula Da Silva, who pillories US corn ethanol in an address defending the sugarcane ethanol industry.
In France, the OECD and FAO published a new Agricultural Outlook. The report forecasts an increase in global ethanol production to 33 billion gallons by 2017, up 100 percent from 2007, with prices averaging $2.07 per gallon in 2009. Biodiesel production was projected to reach 6 billion gallons in 2017, up from 3 billion in 2007.
Dow Chemical signs DOE partnership to explore mixed alcohol catalysts for ethanol production
July 21, 2008
In New York, Dow Chemical announced a research partnership with the Department of Energy to pursue new methods for converting biomass into ethanol, using a mixed alcohol catalyst developed by Dow.
Dow background
Dow Chemical said that it would commence land acquisition efforts in August for a sugarcane-to-ethanol-to-polyethylene plastics business unit. The company’s process will use renewable sources to make polyethylene, which traditionally is made from petroleum and natural gas. A venture owned by Dow and Crystalsev will grow 8 million tons of sugarcane and turn that into 350,000 tons of Dowlex.
Carbon Dioxide – Regions of Greatest Strategic Value, Production and Purity Requirements; Ethanol Industry Sourcing for the Merchant CO2 Trade, plus Second Generation Ethanol Developments
July 18, 2008
From Biofuels Digest correspondent Sam A. Rushing
The North American CO2 market is at least an estimated 10 million short tons per year in consumption, of which the US alone is about 80% of this volume, the balance consumed in Canada. Some 70% of this is in the food and beverage markets and the balance in the industrial sector; none of which is including enhanced oil recovery (EOR). Initiatives for application in many other sectors and industries are underway, some environmentally friendly v. other agents; and this will further the industrial sector as time progresses.
This article reviews the most valuable strategically located opportunities for new developments of CO2 for the merchant sector; plus a review of production issues and purity requirements for various segments of industry. The ethanol industry is undergoing rapid change globally, and more specific to the U.S. the ethanol industry sourcing CO2 as well as the longer term second generation ethanol developments will be reviewed. I am defining the first generation ethanol as using feedstock from corn and wheat, primarily.
The second generation ethanol projects would be the so-called cellulose projects, using a variety of enzymes, syngas processes; or hybrid methods for proposed viable fuel grade ethanol. These days we notice rather strong views on the ethanol front concerning a wide range of issues; and this is discussed as well.
Regional CO2 Opportunities with the Greatest Potential Need
To start, numerous ethanol projects have been slated for the US Northeast, which historically has been difficult to supply with CO2 due to a lack of feedstock from traditional sources (usually refinery (reformer), ammonia, and certain chemical plants TiO2, and Ethylene oxide).
No such projects have been readily available or affordable for the merchant sector for years hence this region has been an import market, from places such as Ohio, Virginia, and New Brunswick. Up to half a dozen ethanol and potential CO2 projects were discussed in the New York market, however as of today, Linde’s plant will be the first tangible ethanol venture for the merchant sector. The project started by BOC Gases now Linde, is located in Fulton, NY will come to fruition in the near term, a 600 TPD facility, sourced from ethanol by-product. This was at the site of an old Miller’s Brewery, now the Northeast Biofuels, LLC facility.
Other potential New York ethanol sourced CO2 projects may come to fruition in the relative near term as well; and of a relatively recent event, Western New York Energy has been a source for CO2 from this corn based 50 million GPY ethanol plant. Next from a regional highly desirable perspective, the Middle Atlantic could well afford strong sourcing from ethanol off-gas, particularly with greater scale, as the 100MM gallon per year range. Numerous efforts have been attempted to fulfill gaps such as this. The Florida market is entirely a CO2 import zone as well, and attempts to develop ethanol projects have not been successful to date. So, as we travel across the U.S.; we go through the Midwest and Southeast; both regions are generally well supplied, and today are not good targets for sourcing opportunities. The low prices offered in the Midwest for merchant CO2 have profit margins which are difficult to reconcile.
In terms of the Southeast, I mentioned this is generally well supplied; however, the Arkansas market has no true strategically located CO2, which is a poultry processing region, with well over 1,000 tons per day in usage. I have personally been contacted by developers in Arkansas with ethanol plans, which never emerged. Some of this greater Arkansas, Mississippi and Alabama regional market has traditionally been supplied by the lower cost Jackson Dome natural sourcing, as underground wells.
Since oil and gas have hit record highs, and since the reserves are primarily owned and their application driven by an oil company, as the merchant contracts expire with most of the CO2 companies, the CO2 will be directed to oilfields for long term enhanced oil recovery (EOR) projects; however one or two exceptions to this EOR directive for CO2 will remain due to a ‘grandfather arrangement’. The expiration of the supply arrangement to the gas companies will take place over the next 10 years. The disappearance of most of these reserves might then lead to a further regional need for new sources from ethanol. The Texas market lost sourcing from anhydrous ammonia, and some of this gap will be filled with new sourcing in the Gulf Coast region from a reformer source; however, additional CO2 sourcing may be an opportunity for the general Texas market.
As we travel to the US Rockies region, there may be plans for new merchant CO2 from ethanol at this time in Colorado; however the balance of the US Rockies should be well supplied as is. Next, traveling to the US Intermountain region, there may be opportunities within this region as well. The same may exist for the west coast; from the U.S. Northwest to the tip of California.
When addressing these more promising regions for strategic CO2 opportunities for the merchant markets, I see ethanol as the most likely source to fill the gaps. If other sources of traditional by-product of a clean and concentrated nature were available in these regions, then sourcing would have probably already been developed. Furthermore, I do not see many alternate chemical process projects likely to emerge readily in most of these areas, short of ethanol as a source for CO2. With respect to these regions, most of the losses of prior more strategically located CO2 sourcing has been from the production of anhydrous ammonia; stemming from cheap imports and high natural gas prices.
CO2 production and Quality Requirements
The cost of CO2 production has risen primarily due to the increased cost of the hardware, as driven by steel price increases (which can readily be noticed by the large storage vessels, for example), plus the increases in power rates. The two major factors in the cost of merchant CO2 production are amortization and power, running close to $10/ton per factor. The cost of labor, overhead, chemical replacement, maintenance, etc, is further added to this equation.
With respect to quality, the benchmark is the ISBT (International Society of Beverage Technologists) standard, also references to the Compressed Gas Association standards is a further consideration for beverage grade quality. Ultimately, the major beverage producers must certify each plant prior to allowing said CO2 liquid as certified for use in their plants, thus the process of certification is essential if the beverage market is to be served; which has traditionally been about 30% of most developed world markets.
Traditional (First Generation) Ethanol Projects in America
During recent years, hundreds of proposed ethanol projects have been proposed, with a fair number to emerge as true working facilities. Some of the impasse has been permitting problems, ‘not in my back yard’ issues, and of course financing such projects. Even before the mortgage meltdown and capital crisis which we now are living with, these projects were difficult to fund often requiring $40million to $100million for ethanol projects with capacities from 40 million to over 100 million GPY in capacity. Ethanol producers are being squeezed from more than one end today, that being with commodities including the essential corn and wheat for feedstock at record high prices here and the demand for affordable ethanol at a peak globally.
With respect to addressing our nation’s energy demands, and future requirements, plus the ever smaller prospect for significant oil reserves to be discovered, ethanol is a viable means to help bridge this gap, not just to replace MTBE as an oxygenate. Even with logistical difficulties surrounding ethanol entering the gasoline additive or replacement markets, and high grain prices, the industry will continue to expand. Some of this will result in certain ethanol project and company consolidations; however as mandates move forward for MTBE replacement continues, and initiatives move ahead to bridge the gap between the consumer need for energy and the dwindling energy supply alternatives, ethanol is here to stay and grow in production and consumption. Corn, wheat, and grains which alternately can, and have been consumed in food products are at an all time high in terms of demand and commodity pricing; plus this demand is further driven by ethanol plant demands; thus prices escalate and crop growth demands continue to grow.
The scale of ethanol plant capacity has steadily grown over the last few years, and is now found to be at least 50 to 100 million gallons per year in capacity today. New projects with less capacity than this would have much more challenging economics.
Second Generation (Cellulose) Ethanol Projects in America
There has been a significant amount of attention placed in the prospect of producing CO2 from a wide variety of organic matter including MSW, old tires, cellulose based grass, wood and corn stalks, for example. Today, some cellulostic projects are DOE sponsored, on a pilot or demo basis to start. There are vast opinions as to methods for improving upon energy consumed, enzyme utilization, and other technical challenges which must be used to achieve viable ethanol from such materials. This challenge must bring the cost of second generation ethanol closer to that of corn based product, or even below this threshold.
With respect to actual plans for cellulostic ethanol, one firm as an example, Range Fuels, headquartered in Colorado, broke ground in November, 2007, near Soperton, GA. This is said to be the first such plant in the United States to produce ‘commercial quantities’ of ethanol from biomass. Their process is said to be a proprietary two step, thermo chemical process, using heat, high pressures and steam for conversion of biomass into syngas. This syngas then uses a proprietary catalyst for conversion into a fuel grade ethanol. Wood chips appear to be the primary feedstock for this project. Range Fuels was unavailable to comment on this subject.
Other projects which I have been a consultant to, and which are proprietary in name and nature, I cannot mention by company name. These cellulostic projects include enzymatic in nature, or acid based in some cases. Usually DOE grants are partly funding these pilot or demo projects, which are small in scale, usually less than 5MM GPY in size.
Last Words
Ethanol and biofuels in general are here to stay, and will continue to grow. One good source of planned new ethanol ventures is the Ethanol Producer Magazine, which in their April edition is showing some 118 domestic projects as possible targets at this time.
When speaking of commodities, The USDA reports a decline in planned corn for 2008 v. 2007; and the decrease in corn for 2008, will perhaps result in higher food prices than we see today. Some of the corn crops will be converted to soybeans. Even though the ethanol industry is heavily subsidized, and has contributed to the rise in corn prices, a decrease in corn production could yield higher prices at the fuel pump.
We have strong arguments against deforestation and clearing of land for planting all forms of grain and biofuel feedstock agents, however, as a form of energy and as a partial means to an end for bridging the gap between dwindling oil supplies and an ever growing hunger for fuels continue; ethanol will grow. CO2 from these projects, that being byproduct from fermentation has been the usual subject with respect to utilization in the merchant markets. Many world markets could use CO2 from these projects; however, with the second generation ethanol projects, when the word ‘waste’ is attached to a feedstock, it may be an absolute ‘turn off’ with respect to the food and beverage industries; particularly when this feedstock is MSW.
On the other hand, in the United States there are orders for new plants beyond Linde’s Fulton, NY plant; which include CO2 plants from ethanol for Medina, NY, Camilla, GA, and Riga, MI to name a few; more will take place in the U.S. as the projects find financing and develop in full.
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About the author
Sam A. Rushing is a chemist with 30 years in the CO2 trade, 12 years with the former Amerigas, and 18 years as a consultant, operating Advanced Cryogenics, Ltd., a full range CO2 consulting practice. For expertise in the CO2 and ethanol industries contact 305 852 2597, rushing@terranova.net ; www.carbondioxideconsultants.com
FAO plans new Global Forest Resources Assessment; will monitor deforestation and forest growth with gateway to imagery and data
July 17, 2008
In Rome, the UN Food and Agriculture Organization said that they are proceeding with planning the Global Forest Resources Assessment, scheduled for 201, which will use remote sensing to create a baseline of data on deforestation, afforestation, and natural forest expansion since 1990.
The project will establish a framework and methodology for monitoring forest resources and rates of change, as well as provide a gateway for access to imagery as well as a reporting and analytic mechanism for countries to assess their own forest and land-use change status.
FAO background
The UN Food and Agriculture Organization said that World Food Day, celebrated on October 16th this year, would have a theme of “World Food Security: the Challenges of Climate Change and Bioenergy”. The FAO will hold special events throughout the week of October 14th, including symposia, roundtable discussions, concerts and a meeting of the Committee on World Food Security.
At the UN Food Summit in Rome, “Everyone complained about other people’s protectionism — and defended their own,” according to the New York Times. The emergency gathering of world leaders teetered on the brink of farce as Zimbabwe’s Robert Mugabe hectored listeners with an anti-colonialist outburst and the president of Iran, “talked about the need to inject religion into food politics” in the Times’ memorable take. It became obvious to observers by the end of Wednesday’s sessions that progress on Secretary-General Ban-KI Moon’s $30 billion food shortage target would be minimal. The roughest treatment for biofuels was handed out by Brazilian President Inacio Lula Da Silva, who pillories US corn ethanol in an address defending the sugarcane ethanol industry.
The June summit meeting of the UN Food and Agriculture Organization had been expected to propose an intergovernmental group to release guidelines for sustainable biofuels. The draft communique from the summit proposed that the governmental group ”identify best practices for the production and sustainable use of biofuel,” as an effort to address global food price escalation. ”We are firmly convinced that the international community must take, in the immediate future, coordinated action to mitigate and where possible correct the negative impact of increased food prices on the world’s most vulnerable countries and populations,” the draft report said.
In France, the OECD and FAO published a new Agricultural Outlook. The report forecasts an increase in global ethanol production to 33 billion gallons by 2017, up 100 percent from 2007, with prices averaging $2.07 per gallon in 2009. Biodiesel production was projected to reach 6 billion gallons in 2017, up from 3 billion in 2007. “Coherent action is urgently needed by the international community to deal with the impact of higher prices on the hungry and poor,” Jacques Diouf, Director-General of the FAO said. “Today some 862 million people are suffering from hunger and malnourishment; this highlights the need to re-invest in agriculture. It should be clear now that agriculture needs to be put back onto the development agenda.”
OECD says first-gen biofuels cost $1700 in public funds per tonne of CO2 reduced; calls for focus on advanced biofuels and conservation as alternative
July 16, 2008
The OECD released its “Economic Assessment of Biofuel Support Policies”, concluding that public sector support of first-generation biofuel production is costly, has a limited greenhouse gas emission and energy security benefit, and increases crop prices. The report concludes that the fuels are dependent on government support for viability, and that overall government support costs up to $1,700 per tonne of CO2 reduction. The report said that governments should focus policy on energy conservation and support second generation biofuels.
The complete report can be downloaded here.
OECD background
In France, a senior official at the at the Organization for Economic Cooperation and Development said that biofuels can only be partly blamed for the recent increases in commodity prices, calling efforts to make a broader linkage “simplistic”.
Loek Boonekamp told the Reuters Global Agriculture and Biofuel Summit that the rise in cereal prices would have happened even without the rise in biofuel production, and that the shortfall in global grain production was more than four times as large as the increase in biofuels-based grain demand.
The OECD in an official paper entitled “Special Issue on Climate Change Climate Change Policies: Recent Developments and Long Term Issues” said, “Biofuels may also be used as a replacement for gasoline. In such a capacity they offer significant advantages for energy security as well as possible new potential for agricultural development.”
Previously, the OECD released its 2007-2016 Agricultural Outlook, which found that “increased feedstock demand for biofuel production, and the reduction of surpluses due to past policy reforms, may keep prices above historic equilibrium levels during the next 10 years.” The OECD wrote that “higher commodity prices are a particular concern for net food importing developing countries as well as the poor in urban populations, and will evoke on-going debate on the “food versus fuel” issue….The expectation that world market prices have attained a higher plateau may facilitate further policy reform away from price support. This would reduce the need for border protection and would provide flexibility for tariff reductions.”
Two researchers submitted a draft paper last fall to the OECD Roundtable on Sustainable Development - an information exchanging forum for Ministers of Trade, Finance and the Environment — calling for an end to biofuels subsidies. The report says that biofuels are an untried technology that can have only limited effect on the climate and will cause a rapid rise in food prices. The study’s authors concluded that US ethanol supports cost $500 for every ton of carbon dioxide removed from the atmosphere — and almost ten times this amount in the EU — and suggested instead the imposition of “technology-neutral” carbon taxes.
It says biofuels could lead to some damage to the environment. “As long as environmental values are not adequately priced in the market, there will be powerful incentives to replace natural eco-systems such as forests, wetlands and pasture with dedicated bio-energy crops,” it says.
The report recommends governments phase out biofuel subsidies, using “technology-neutral” carbon taxes instead to allow the market to find the most efficient ways of reducing greenhouse gases.
“Such policies will more effectively stimulate regulatory and market incentives for efficient technologies,” it said. The study found that only Brazilian sugar, paper-making byproducts and used vegetable oil are suitable feedstocks for biofuel production.
Zero US public support for eliminating Brazilian ethanol tariff, Fed survey finds
July 15, 2008
According to a survey by The Regional Economist magazine (published by the Federal Reserve Bank of St. Louis), 73% of survey respondents support the elimination of subsidies and tax breaks for oil and ethanol companies, and zero percent of respondents supported the elimination of the Brazilian ethanol tariff.
Tariff background
U.S. Republican presidential candidate Sen. John McCain said that he supports the ending of ethanol subsidies, would back a repeal of the ethanol tariff, and would support the inclusion of Brazil and India into a larger G8 group. McCain was quoted in Estato de Sao Paulo saying that he favors the removal of Russia from the G8.
In Washington, a bill introduced by Senators Dianne Feinstein (D-CA) and Judd Gregg, (R-NH), to reduce the ethanol tariff from 54 cents to 45 cents stalled in committee. The bill, which is now in the Senate Finance Committee, is opposed by both committee chairman Max Baucus (D-MT) and ranking Republican Chuck Grassley (D-IA). Aides said that the Finance Committee, in addition, does not typically fast-track bills proposed by Senators outside of the committee, and there is not enough time on the normal legislative clock to pass major new energy legislation this year.
Meanwhile, meat producers are mounting a full-court press to eliminate the ethanol tariff and ethanol subsidies, to reduce pressure on corn prices that affect chick production costs. The industry, however, is being careful to separate the issue of chicken farming credits and subsidies from other farm subsidies. The industry continues to strongly support poultry farmer and cattle subsidies and supports. Grocers’ associations are coordinating efforts with meat producers.
Last month, Cosan called on the Brazilian government to intervene with the US government more forcefully on ethanol tariff, and observers said that Brazil may take the US to the World Trade Organization over the tariff, now that the US Farm Bill becamke law and extended it.
The WTO has commenced an investigation into US farm subsidies following protests from Canada and Brazil. The Canadians and Brazilians allege that the US has exceeded its $19.1 billion cap on farm subsidies in six of the past eight years, including subsidies for biofuel feedstocks such as corn and soya.
It will be the first time the World Trade Organization has ruled on energy subsidies.
The convergence of energy and agriculture in the biofuels industry is expected to pose thorny questions for the WTO. While neither sector has enjoyed free trade conditions, the subsidy mechanism which has supported national agriculture interests has attracted negative attention far more than the cartel approach employed in the oil industry.
The issue is a key point of contention imperiling the Doha round of global trade talks. The United States and European Union have blocked a Brazilian proposal to include biofuels among “environmental goods” scheduled for tariff reduction or elimination in the next world trade treaty. The US and European position is that the environmental designation rules are for industrial products, not agriculture.
Pratt & Whitney to lead Indian-Canadian research effort on jatropha for jet engines
July 14, 2008
In Canada, Pratt & Whitney Canada announced that it was investigating advanced biofuels such as algae and jatropha as fuel sources for its jet engines. The company has embarked on a four-year project to identify advanced biofuels candidates, calculate advantages compared to conventional fuels and first generation biofuels, and address engineering changes to accommodate a biofuel migration.
The project was established under through a joint Indian-Canadian research collaboration agreement and the International Science and Technology Partnerships Program is providing funding. Pratt & Whitney will manage the project and will be joined by Infotech Enterprises, McGill University, Laval University, Ryerson University, the National Research Council Canada and the Indian Institute of Technology, Science and Petroleum.
Aviation biofuel background
Airbus and Boeing have announced radically different timelines for the widespread adoption of biofuels in commercial aviation. The vice-president and general counsel of Airbus projected an eight to ten year timeline for full certification of biofuels. Boeing managing director of environmental strategy Billy Glover said that he expected to see fuel certification by 2013. Glover added that he expected algae to be the primary feedstock for aviation biofuels within 10 to 15 years.
Japan Air Lines said that it will conduct a Boeing 747-based biofuels test before next March. JAL becomes the fourth airline, after Virgin, Air New Zealand and Continental, to schedule a biofuels test in association with Boeing and General Electric. Virgin completed its test earlier this year, while Continental and Air New Zealand will conduct their tests later this year.
Lufthansa. Lufthansa said that it would convert up to 10 percent of its fuel usage to biofuels by 2020, as a part of its overall effort to reduce emissions by 25 percent in that time frame. compared to 2006 levels. The company, which announced a set of measures to improve environmental efficiency, also said that it would reduce NOX emissions by 80 percent from 2000 levels.
Malaysia. Malaysia Airlines indicated that the airline expects to convert to biofuels as soon as they reach commercial viability in Southeast Asia. The airline’s CEO Datuk Seri Idris Jala made the comments while launching a “MAS Goes Green” initiative, which channels voluntary funds from customers into a Forest Research Institute-managed trust fund for sanctioned forest conservation projects.
Air France-KLM. Air France-KLM announced an agreement with Algae-Link to procure algae oil to be blended with conventional jet fuel. Deliveries of algae oil will commence by the end of 2008, according to Algae-Link executives, but quantities were not disclosed.
JetBlue. Airbus and Honeywell recently announced a partnership that they said would replace up to 30 percent of jet fuel with biofuels. The partnership, which also includes Jet Blue and the International Aero Engines consortium, said that they would produce biofuels from algae and other non-food vegetable oils. The International Aero Engines consortium included Pratt & Whitney and Rolls-Royce. Fuels will be developed by Honeywell UOP, which last year won a contract with the Defense Advanced Research Projects Administration (DARPA) to develop biofuels for the US military
Continental. Continental Airlines will become the first US airliner to conduct a biofuels test flight. The company announced that, in partnership with GE and Boeing, it would schedule a test biofuels flight in 2008. The companies said that the test would include a different set of feedstocks than those tested in the historic Virgin Atlantic flight, which included babassu and coconut oil.
The companies would test up to 50 percent biodiesel, compared to the B20 blend used in the Virgin flight.
Virgin. The World Development Movement called the recent Virgin 747 biodiesel test flight a “publicity stunt with dangerous consequences for the planet” and said that Virgin owner Sir Richard Branson “should back a campaign to include aviation in the climate change bill.â€
Sir Richard Branson, in remarks surrounding the Virgin 747 biodiesel test flight, said that algae would almost certainly be the feedstock for commercial aviation biofuels, implying that the selection of coconut and babassu oil had been made in light of an algae oil shortage. Branson announced a new business unit of Virgin Atlantic Airways that would produce algae-based biofuels for the airline’s use. Branson told reporters that algae is the best fuel feedstock because it does not affect food supply. He said that his company is “talking to a lot of sewage plants about setting up algae plants above and using a lot of the CO2 coming off those sewage plants” and said that using CO2 to produce algae for low-emission fuels was a “a double-whammy effect.”
Air New Zealand. Air New Zealand said that its upcoming biofuels test in August will use jatropha biodiesel in one of the test 747’s four engines. The company said that if the test is successful that it intends to convert its planes to use a B10 mix of jatropha and conventional fuel, noting that jatropha biodiesel costs up to 30 percent less than conventional jet fuel;. The proposed test flight from Auckland will take two hours, using jatropha from India and Africa. Fuel certification will take up to three years, according to the airline, from the time of the first test flight.
The news will surprise observers who expected Air New Zealand to opt for algae-based biodiesel produced by Aquaflow, a New Zealand-based company that has been working closely with the airline all year.
Air New Zealand Deputy CEO Norm Thompson said recently: “Our goal within the organisation is certainly to get into a position where we could run if not all, certainly part of our domestic fleet on biofuels. Believe you me, this is happening quicker than we had planned. It is really advancing quite quickly and the way Jet A-1 (airline fuel) is priced at the moment, at $US172, it gives a hell of a lot of people a hell of a lot of encouragement to get on and make it happen bloody quickly.”
International Air Transport Association. IATA has set a goal of making planes 25 percent more fuel efficient by 2022, and “zero emission” planes within 50 years, but with airlines expected to increase fleet size by 140 percent in the next 20 years, such an effort would not keep pace with the rate of airline fleet growth. Giovanni Bisignani, Director General and CEO of IATA said, “Air transport takes its environmental responsibility seriously. Alongside safety and security it is a pillar on which we have built a great global industry. Despite our good track record, air transport’s carbon footprint is growing. That is not acceptable. Our vision is for air transport to achieve carbon neutral growth in the medium-term, on the way to a carbon emission free future.
Biocrude jet fuel. Sustainable Power announced that its 10 percent biojet fuel blend had been successfully tested in conjunction with AmSpec Services and an undisclosed major domestic US airline. Tests concluded that the blend had met and exceeded current jet fuel specifications, providing the company with a viable entry into the 18 billion gallon commercial aviation fuel market. A link to view the laboratory test results has been posted here. Sustainable Power’s bioreactors utilize the Rivera process to produce bio-crude from algae, palm fruit, coconuts, and other industrial or food waste. Sustainable Power is the exclusive licensee of the Rivera process, originally developed by US Sustainable Energy (USSE.PK).
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