Renewable Energy Memo

November 30, 2009

Grassley Pushes for Extension of Biodiesel Tax Credit

Iowa Senator Charles Grassley, one of the sponsor of the Biodiesel Tax Credit Reform and Extension Act, is continuing to push for the Senate to act on the bill before the end of the year.   Existing tax credit programs for biofuels expire at the end of 2009 unless Congress acts.

Grassley has said that the bill, along with other matters, is being pushed back as the Senate’s time is absorbed with the debate over health care.  Grassley said that he opposed simply extending the tax for another year because that could create a “legislative deadlock.”

November 25, 2009

Last Day of Voting for 50 Hottest Companies in Bioenergy

Filed under: Biofuels, CleanTech investing — Tags: , — Jonathan B. Wilson @ 11:15 am

Today is the last day of voting for the “50 Hottest Companies in Bioenergy.”

November 23, 2009

Renewable Energy Around the Web: November 23, 2009

Our weekly compendium of renewable energy news and information from around the Web.

Trony Solar IPO

Chinese PV manufacturer Trony Solar is looking to raise $241 million in its planned initial public offering.  J.P. Morgan and Credit Suisse are said to be the lead underwriters in the offering. 

Atlanta Foodservice Runs on Biodiesel

The Atlanta division of U.S. Foodservice is now running on biodiesel.   The Atlanta division’s 185 tractors began using biodiesel fuel early in November following the first 7,500-gallon delivery of B5. In addition to using biodiesel blends in the tractors, the fuel will power the four-cylinder, Thermo King Engines in its 210 refrigerated trailers.

Atlanta joins the U.S. Foodservice division in Plymouth, Minn., which uses B5, and the Streator, Ill., division which uses B11 in all but the winter months. The Minnesota facility has used biodiesel blends for years, the company stated, starting with B3 and switching to the state-mandated B5. “The division has had no performance or engine longevity issues,” a company spokesman said. U.S. Foodservice Minnesota is exploring a switch to B10 ahead of a state-mandate increase that takes effect in 2012.

U.S. Foodservice-Atlanta is active with and has a leadership role in several local, regional and state efforts to promote and protect the environment including the Georgia DNR Project, Partnership for a Sustainable Georgia and the Atlanta Zero Waste Zone.

Danish Ethanol

Inbicon unveiled a 1.4 MGY cellulosic ethanol demonstration plant in Denmark, using wheatstraw as its initial feedstock.  Inbicon has been working in partnership with Danish governmental energy authorities and the unveiling was timed to coincide with the climate change conference in Copenhagen

Portable Solar

The BBC ran a lengthy article on applications for portable solar power.  Portable solar can be an efficient solution for devices that would ordinarily run on batteries or that would require new powers lines to connect to the grid, including street lights and signs. 

Push for Extension of Biofuel Tax Credit

The National Biodiesel Board voiced its support for two bills pending in Congress that would extend the biofuel tax credit program that expires at the end of 2009.  (H.R. 4070 and S.B. 1589).  During visits with lawmakers, biodiesel industry leaders expressed strong support for S. 1589, the Biodiesel Tax Incentive Reform and Extension of Act, introduced by Senators Maria Cantwell (D-WA) and Charles Grassley (R-IA), and H.R. 4070, companion legislation introduced yesterday by Representatives Earl Pomeroy (D-ND) and John Shimkus (R-IL). This legislation would reform the biodiesel tax incentive by changing the current blenders excise tax credit to a production excise tax credit. This will improve administration of the incentive, eliminate potential abuses and improve tax compliance. The proposals would also extend the biodiesel tax incentive for five years, providing the certainty entrepreneurs need to create jobs and expand the use of biodiesel.

Comings Events in Renewable Energy

The Renewable Fuels Association is hosting its 15th Annual  Ethanol Conference in Orland, Fla. on  February 15-17, 2010.  Panels will cover the indirect land use charges debate and the path forward for commercialization of biofuels.  Registration before January 22 will get members a discounted entrace for $550 ($750 for non-members).

Registration is still open for the Canadian Biofuels Summit to be held in Vancouver, BC November 30 to December 2, 2009.

50 Hottest Companies in Bioenergy

Ballots are due today for the Biofuels Digest “50 Hottest Companies” competition. 

Write to Us!

We’d love to hear from if you have an idea for a story or would simply like your renewable energy company covered.  Write to us at “editor at renewableenergymemo dot com”.

November 19, 2009

Biodiesel Tax Credit Extension Bill

Filed under: Biofuels — Tags: , — Jonathan B. Wilson @ 7:31 am

A California congressman has introduced a bill (H.R. 4070) that aims to extend the biodiesel tax credit program another five years.  North Dakota Representative Early Pomeroy introduced the legislation on November 16, 2009 after which it was referred to the House Ways and Means Committee.  The bill is a companion to S.B. 1589, introduced by Maria Cantwell and Charles Grassley two months ago.

November 16, 2009

Renewable Energy Around the Web: November 16, 2009

Filed under: Around the Web — Tags: , , , — Jonathan B. Wilson @ 7:25 am

Our weekly compendium of renewable energy news and information from around the Web.

Out of Thin Air?

Joule Biotechnologies claims to be able to convert CO2 and sunlight directly into hydrocarbons with its custom engineered microbes, according to reports.   According to the company’s press release:

“Joule is advancing a new, photosynthesis-driven approach to producing renewable fuels, avoiding the economic and environmental burden of multi-step, cellulosic or algal biomass-derived methods. The company employs a novel SolarConverter™ system, together with proprietary, product-specific organisms and state-of-the-art process design, to harness the power of sunlight while consuming waste CO2. Its pioneering technology platform has already been proven out with the conversion of CO2 into ethanol at high productivities, a process that enters pilot development in early 2010. With this latest feat of genome engineering, Joule is now capable of directly producing hydrocarbons – setting the stage for delivery of infrastructure-compatible diesel fuel without the need for raw material feedstocks or complex refining.

The breakthrough was made possible by the discovery of unique genes coding for enzymatic mechanisms that enable the direct synthesis of both alkane and olefin molecules – the chemical composition of diesel. Production was achieved at lab scale, with pilot development slated for early 2011.”

It’s an intriguing idea.  Hydrocarbons are formed naturally through a combination of photosynthesis, decomposition, time and pressure.  Chemically, it ought to be possible for a microbe to produce hydrocarbon molecules directly.

The company’s announcement says that they have demonstrated the process in a lab and plan to have a demonstration project in 2011.  What remains to be seen is whether the fast-forwarding of nature’s processes that Joule’s method enables can be done on a profitable basis at scale.  If it can, hold onto your horses.

Leaving on a Jet Plane?

Recent statements from representatives of the U.S. Air Force and the Department of Energy suggest that government leaders are focusing on the role of biofuels for aviation.  The Air Force has announced a $2.5 million biofuel research facility at Wright-Patterson Air Force Base in Ohio.  Biofuels Digest lists the players involved in developing biofuels for aviation applications.

Glut of Solar Panels Ending?

A research group that forecast a glut of solar panels through 2010 now believes that a surge in demand from German has taken up the slack and that demand is now catching up with supply.  Prices for solar panels had dropped through much of 2009 as supplies exceeded sales but German and European purchases have picked up in late 2009 and prices seem to be stabilizing, according to reports.

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Know of a story that we should cover?  Write to us at “editor at renewableenergymemo.com”.

November 11, 2009

Health Care Bill Cuts Biofuel Tax Credits

A provision in the health care bill passed by the House of Representatives over the past weekend (H.R. 3962) would cut the tax credits currently benefitting cellulosic ethanol and other biofuel tax producers.

Section 555 of the bill excludes from the cellulosic biofuel producer credit (under Section 40(b)(6) of the Internal Revenue Code) any fuel that (a) consists of more than 4% water and sediment or (b) consists of more than 1% ash. 

In an attempt to generate revenues to pay for the costs of expanded health care, the House bill eliminated tax credit provisions that are expected to return $24 billion to the U.S. Treasury over the next 10 years.  Members of the House from Midwestern and other farm states who voted in favor of the bill have already staked out positions in favor of eliminating the tax credit cut in the final version of the health care bill.

November 9, 2009

Renewable Energy Around the Web: November 9, 2009

Our weekly compilation of renewable energy news and information from around the Web.

Xcel Biomass Project Moves Forward

An Excel Energy biomass project in Wisconsin has been given a greenlight by the Wisconsin Public Service Commission.  After three years of project planning and evaluation, Xcel Energy will be permitted to convert a former coal-fired power plant into the largest 100 percent woody biomass-fired power plant in the Midwest.

The Public Service Commission of Wisconsin granted project approval beginning in November, roughly eight months after Xcel submitted its application. The power utility will now convert the last of the three boilers at its Bay Front Power Plant in Ashton, Wis., to utilize a biomass gasification technology. The remaining two boilers have combusted woody biomass for the past 30 years.

In its entirety, Xcel Energy expects the project to cost $58.1 million, which includes additional biomass receiving and handling facilities at Bay Front, an external gasifier, modifications to the boiler and an enhanced air quality control system.  The primary fuel source at the 60-megawatt (MW) plant will be forest waste from surrounding areas. Once fully operational, the entire plant will require 400,000 to 450,000 tons of woody biomass per year.

Conference Recommends Coal Retrofits

Speakers at the Great Plains Institute recommended converting coal-fired plants more than 25 years old to synfuel / biomass co-firing as the best method to reduce GHG from this aging plants. 

Robert Williams, senior research scientist at the Princeton Environmental Institute argued that the best way to reduce greenhouse gas (GHG) emissions from coal-fired power plants in the U.S. is to replace plants that are more than 25 years old with facilities that coproduce electricity and synthetic fuels from coal and biomass while employing carbon capture and storage systems.

Williams made these statements at the GPI conference in Faro, N.D. before a crowd of about 115 people.  The conference, titled “The Future of Coal and Biomass in a Carbon-Constrained World: Technology and Policy Opportunities for the Midwest,” featured several topics and speakers from as far away as China. Tackling both coal power and transportation emissions simultaneously is the best option for meeting that 80 percent goal, Williams said. “That’s a very daunting task,” he said. “We need to make radical change and we need to get underway soon.”

Retrofitting existing coal power plants with carbon capture and storage systems is one option, but Williams said it’s extremely expensive and energy- and water-intensive. Completely replacing the systems not only leads to decarbonized energy, he said, but also enables coal to play a major role in the realization of zero GHG emissions in the production of synthetic transportation fuels. The replacement would mean a switch from combustion to gasification, which allows a relatively simple carbon dioxide removal, Williams said.  A coproduction system with carbon capture and storage producing two-thirds synthetic fuels and one-third electricity, fired by 11 percent biomass, reduces system-wide GHG emissions by 50 percent, whereas a system with 38 percent biomass reduces emissions by 90 percent, he cited.

In Other News . . .

Jim Lane, the editor of Biofuels Digest, has an e-book out called Citizen Cane: Essays for New Days in Bioenergy.  The work explores current topics in biofuels and bioenergy.

KLM Airlines is going to begin running test flights, with passengers, on its jets flying on biofuels.  Flights will begin on November 23. 

A Swiss investment firm has bought the 5 Mgy biodiesel plant of Tri-City Energy in Keokuk, Iowa.  The plant had been slated for auction in December.

TAC Energy has bought Fuel Managers, Inc., in a deal that combines two large fuel distributors.  The combined entity will have more than 2 billion gallons of capacity with sales in all 50 states.

Second generation ethanol producers are asking for improved federal subsidies and supports.  In testimony before Congress in late October the CEOs of several ethanol producers said that current loan guaranty and tax credit programs are proving to be insufficient to generate the capital needed to break ground on new projects. 

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We want to hear from you!  If you have an idea for a story or would like to get your company mentioned please write to us at “editor at renewableenergymemo dot com”.

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