United Nations Secretary-General Ban Ki-moon was to host important climate change meetings in New York with the aim of mobilizing political will for a universal and legally binding comprehensive climate change agreement for 2015. The meetings were carefully downplayed so expectations would be kept in check, however, many see these meetings as a critical next step in developing a concrete framework for combating the impacts of climate change. Evidence of the impacts of climate change continues to mount and climate change deniers are finding it increasingly difficult to find a receptive audience for their views. There is a growing recognition that affordable, scalable solutions are now available, which will enable us to mitigate the impacts of climate change in an economically sustainable way. There is a sense that change is in the air. Ki-moon invited global leaders, from government, finance, business, and civil society to Climate Summit 2014 to galvanize and catalyze action to combat climate change. He asked these leaders to bring bold announcements and actions to the summit that will reduce emissions, strengthen climate resilience and mobilize political will for a meaningful legal agreement in 2015. It provided a unique opportunity for global leaders to champion an ambitious vision, anchored in action that will enable a meaningful global agreement for the coming year. In an open letter to the secretary-general leading up to the meetings, the Global Renewable Fuels Alliance provided attendees with current data on the global greenhouse gas (GHG) emissions reductions being generated annually from global ethanol production. The letter urged attendees and the UN to focus on the opportunities available today for emission reductions, particularly in the transportation sector. The GRFA called on the secretary-general to take a leadership role fostering biofuels friendly policies that would build on the current GHG reductions that the industry is delivering each year. The GRFA, in partnership with S&amp;T Squared Consultants Inc., an internationally renowned energy and environmental consulting firm, is forecasting that global ethanol production and use in 2014 will reduce GHG emissions by over 106 million metric tons. The data also shows the reduction in global GHG emissions from global ethanol production continues to increase yearly. This year&rsquo;s figure reveals that 90.38 billion liters of global ethanol production and use in 2014 will reduce global GHG emissions by over 291,000 metric tons per day. Compared to 2013, this is an increase of more than 7,000 metric tons per day in GHG emission savings. In 2013, global ethanol production and consumption resulted in 100 million metric tons of GHG emissions reduction, which was equal to 20 million cars being removed from the world&rsquo;s roads. This year, global ethanol production and consumption will result in 106.4 million metric tons of GHG emissions reduction, which is equal to: &bull; 21,279,808 cars being removed from the world&rsquo;s roads in 2014. &bull; 58,300 cars being removed from the world&rsquo;s roads daily. &bull; Removing the annual emissions from 14 average-sized, coal-fired power plants, which could power approximately 28 million homes. In a letter to Ki-moon, GRFA said that biofuels like ethanol are the only cost-effective and commercially available alternative to crude oil and are proven to reduce harmful GHG emissions and help in the fight against climate change. It is estimated that the transportation sector produces 25 to 30 percent of the world&rsquo;s GHG emissions, making it a priority for policy-makers worldwide. There are few alternatives available to reduce emissions in this sector other than biofuels that can readily replace diesel and gasoline. Global production of biofuels has grown steadily in the past decade and today replaces over 1 million barrels of crude oil per day. According to the International Energy Association, biofuels could make up 27 percent of the world&rsquo;s transport fuels by 2050 and eliminate 2.1 gigatons of CO2 emissions, but strong policies must be put in place in order to meet this target. Developing a strong climate change framework at the UN meetings would be a critical starting point for reaching this important target if we are to meet the challenges we face related to climate change and global warming. Author: Bliss Baker Global Renewable Fuels Association 647-309-0058 info@globalrfa.org

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In advance of important climate change meetings set for Septemeber, the Global Renewable Fuels Alliance sent an open letter to United Nations Secretary-General Ban Ki-moon, outlining ethanol's power to reduce GHG emissions, writes Bliss Baker. 

Ethanol Slashes GHG Emissions

It&rsquo;s no coincidence that Project Liberty&rsquo;s name includes a word that means freedom, said Feike Sijbesma, Royal DSM&rsquo;s CEO and board chairman, during the Sept. 3 event. Poet-DSM Advanced Biofuels LLC&rsquo;s Emmetsburg, Iowa, cellulosic ethanol plant is an opportunity for freedom from addiction to fossil fuels, freedom from the cycle of pollution and freedom to create jobs in the Midwest and around the world. &ldquo;We are &hellip; witnessing the start of the shift of the fossil age we have lived in, and we still live in, to the biorenwable age we are entering today,&rdquo; he said. &ldquo;The fossil age will inevitably come to an end one day.&rdquo; About 3,000 people attended the celebration, including speakers USDA Secretary Tom Vilsack, King Willem-Alexander of the Netherlands, where DSM is headquartered, Iowa Gov. Terry Branstad, Michael Knotek, U.S. DOE Deputy Undersecretary of science and technology, and other officials. The 20 MMgy cellulosic ethanol plant, which will eventually expand to 25 MMgy, first produced biofuel in August. Jeff Broin, Poet&rsquo;s founder and executive chairman, asked farmers in attendance to stand up, recognizing that the company could not do its job without them. &ldquo;What we see around us today is a symbol of what can be accomplished through the miracle of nature, the work of the farmer and the power of human ingenuity.&rdquo;&nbsp; The $250 million project developed over 10 years of research and development, seven years of feedstock collection and three years of building and refining a partnership with Netherlands-based Royal DSM, said Poet&rsquo;s CEO Jeff Lautt. Construction of the plant took a thousand truckloads of concrete, millions of pounds of steel and the work, sweat and dedication of hundreds of construction workers to complete. Branstad noted that the state of Iowa estimates a $24.4 billion impact on the state in the next 20 years, adding that with enough innovation and hard work a dream like this can become reality. &ldquo;And we&rsquo;re not done dreaming, not by a long shot,&rdquo; he said. Poet founder and chairman Jeff Broin spoke about how his father began experimenting with ethanol production on a kitchen stove at the family farm. &ldquo;Neighbors thought we were crazy when we bought a closed plant in Scotland, South Dakota,&rdquo; he said. &ldquo;And they thought we were every crazier when we went around talking to farmers about the possibilities. We were told we&rsquo;d never get enough biomass, that ethanol would never been cost competitive, and that it was a fantasy fuel. Well, we became used to being called crazy, and here we are today with something I never could have dreamed of. Project Liberty has been a fantasy, but today, it is real. &hellip; Hundreds of years from now, it is my hope that people will say this all started because of some crazy people in a small town in Iowa had a dream.&rdquo; Authors: Holly Jessen Managing Editor, Ethanol Producer Magazine 701-738-4946 hjessen@bbiinternational.com Contributor: Anna Simet Managing Editor, Biomass Magazine

BIG TURNOUT: Feike Sijbesma, Royal DSMâ€™s CEO and board chairman, said many told DSM and Poet that the companies were embarking on an impossible task to produce ethanol from agricultural residue. 

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FEEDSTOCK TRANSFORMATION: Project Liberty had produced 1,000 gallons of cellulosic ethanol as of the grand opening, according to Steve Hartig, Poet-DSM general manager.  

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VIP TOUR: Various officials, including, at left, Feike Sijbesma of Royal DSM, King Willem-Alexander of the Netherlands, and, behind them, Jeff Broin of Poet, walk through the plant. 

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CONSISTANT ADVOCATE: Project Liberty, which the USDA invested in, demonstrates that the U.S. is ready for advanced biofuel production, said USDA Secretary Tom Vilsack.

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STEP-BY-STEP: Stover bales are shredded, sent into the pretreatment system and then held in â€œsac alleyâ€� for 120 hours for optimal enzyme performance, according to Beau Schmaltz, operations and engineering manager.

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GOLDEN PILES: It takes about eight days for a bale of corn stover to be transformed into cellulosic ethanol.  

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GETTING IT DONE: Poetâ€™s CEO Jeff Lautt spoke about what it took to make the $250 million project a reality. At his left is Netherlandsâ€™ Ambassador to the U.S. Rudolf Bekink. 

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What was once only a dream has become a reality with the grand opening ceremony of Project Liberty. 

Victory For Project Liberty

In recent months, the buzz has been about using various fractions from DDGS as protein ingredients in feeds for the aquaculture industry.&nbsp; Indeed, there are some very interesting value-added ingredients coming down the pipeline. Unbeknownst to many, however, traditional DDGS has already been proven time and again as working very well as a protein source in a variety of aquafeeds. As with any feed ingredient, though, it must be used at the proper level, and in proper combination with other ingredients as part of a complete, balanced diet. Formulations vary, depending upon the species and the age of the fish&mdash;similar to any other livestock species. A broad look at the industry and a bit of history are in order. Aquaculture is the fastest growing animal food-producing sector globally. The industry has been growing by nearly 7 percent per year for almost 40 years. In fact, it has been the only food producing sector growing at a rate greater than human population growth. Most of this growth has been outside the U.S. and, although there is considerable potential here in the U.S. for fish production, it has been slow to materialize. China has by far been the world&rsquo;s leader in aquaculture production, but other countries around the world have also become large players, including Indonesia, Vietnam, Bangladesh and several South American countries. Even though many countries have rapidly increased production during the past decade, China is still the largest producer of fish. For a typical fish production operation, in the U.S. or abroad, feed costs represent between 40 and 70 percent of all operating costs, depending on the specific farm. Historically, fish meal has been one of the most important ingredients in aquatic diets, supplying essential proteins, amino acids, fatty acids, minerals and other nutrients. In recent years, as the demand for fish meal has grown in tandem with the growth of aquaculture, the price of fish meal has skyrocketed, hovering between $1,500 and $2,000 per metric ton for the past four years. The increases in both demand and price have propelled the search for wild marine and fisheries stocks, even though wild capture has not increased significantly for many years. A logical solution to this dilemma is to use plant-based cereal and oilseed ingredients. There are many to choose from. There are also challenges with many of these alternatives, however, including unwanted nutrients and antinutritional factors (e.g., trypsin inhibitors, protease inhibitors, lectins, gossypol), nutrient variability, poor nutrient balances (e.g., amino acid profiles, fatty acid profiles), cost-intensive processing to convert them into usable form, low-volume production and poor effectiveness in fish performance. At the moment, soy-based ingredients are the leading contenders for fish meal replacement. DDGS is also an effective protein source for aquaculture feeds. Advantages include its wide availability, moderate protein level, complementary amino acid profile (depending on supplementary ingredients), and effectiveness in many fish species when used in proper conjunction with other ingredients. The greatest advantage, however, is that DDGS is generally one-tenth to one-twentieth the price of fish meal, and approximately one-half the price of soybean meal. The economics are hard to argue with. Many feeding trials have investigated the use of DDGS in aquafeeds over the years. In fact, the Distillers Grains Technology Council funded the first feeding trials as far back as the 1950s, and found that distillers dried solubles could be effectively used in catfish and rainbow trout diets up to 21 percent inclusion levels. Most early aquaculture research used DDGS from beverage distilleries, because the fuel ethanol industry was so small back then. But, the idea gained traction in the 1990s and 2000s as the fuel ethanol industry grew, and the quantity of DDGS grew. Some of the landmark studies, listed in the accompanying table, found DDGS (or even thin stillage or solubles in some cases) can be successfully used in a variety of fish diets, with fairly high inclusion levels. The economics of using DDGS to partially offset fish meal are quite astounding. For example, if fish meal were used in an aquafeed at 40 percent inclusion, and DDGS increasingly replaced that fishmeal (from 0 to 100 percent), the relative cost of the diet would decrease, as shown in the accompanying graph. At 100 percent fish meal replacement, the total diet cost would be reduced by almost 90 percent. Overlaid on this graph, I also show some of my research team&rsquo;s results over the past decade. Depending on the species and the other ingredients used, we successfully used 20 percent DDGS inclusion in tilapia diets with no difference compared to a fish meal-based control diet; we have been able to use up to 40 percent DDGS in yellow perch diets, and we have even been able to achieve up to 60 percent DDGS inclusion in rainbow trout diets. All of these studies were conducted using traditional DDGS, not fractionated products. Using DDGS in aquafeeds is not quite a slam dunk, however. Some of the challenges associated with using DDGS include both feed manufacturing as well as fish performance considerations. In terms of processing, the big question is how much DDGS can be used in a formulation without hindering the extrusion process or sacrificing pellet quality. We need to have cohesive, stable, floating pellets. This can be achieved with high levels of DDGS, but there is an art in operating the extruder so that high quality pellets can be produced. In terms of feeding trials, we need to determine how much DDGS the fish can eat, what level will result in optimal fish growth and feed conversion, what else must be added to the ingredient matrix, and what level will result in optimized production costs. In terms of feeding recommendations, it appears that using 20 percent DDGS inclusion is about optimal, both for feed manufacturing operations, as well as fish performance (this is true for many fish species, actually). And this has been borne out by much research in the past decade, both by my team as well as other researchers. DDGS is a viable protein ingredient for aquafeeds when used as one component of a balanced feed. We need to convince aquaculture producers as well as aquafeed manufacturers that real economic benefits can be realized by using DDGS as a protein source, and feed quality and fish performance will not suffer if done correctly. Author: Kurt A. Rosentrater Executive Director, Distillers Grains Technology Council 515-294-4019 karosent@iastate.edu

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Traditional DDGS is a proved ingredient in aquaculture feed, writes Kurt Rosentrater. He vies a broad look at the industry and history of its use. 

DDGS Already a Proven  Ingredient in Aquafeeds

When my team formed Carbon Green BioEnergy LLC, we had a vision to own and operate an ethanol plant. We raised enough equity to purchase a mothballed, two-year-old plant in Lake Odessa, Michigan, that had been sitting idle since it went bankrupt in 2008. CGB purchased the plant in 2009 at a time when many thought the ethanol boom was going bust. However, we strongly believed in the future of ethanol as a sustainable, clean fuel that creates jobs and reduces the country&rsquo;s dependence on foreign oil. Today, our vision for the future has fueled a benchmark plant turnaround that is yielding outstanding results for the company and the community. Restart Challenge&nbsp; In June 2009, CGB took possession of the plant and needed to get it back up and running in a matter of months. This was no small task, as the facility had to be repaired, cleaned, tested, inspected and certified after being unused for a period of time. Once the plant was cleared for production, CGB discovered it wasn&rsquo;t operating at capacity. It was producing 37 MMgy when its nameplate capacity was 50 MMgy. We knew we had to increase the plant&rsquo;s efficiency and productivity across the board to make it sustainable and profitable in the long term. One of our main goals has been to enhance the local economy and community by working every day to improve our plant and our process. We want to be part of the solution to our energy needs in the United States and so we embarked on a plant overhaul that included: &bull;&nbsp; Upgraded process control system. &bull; Increased grain storage capacity from 400,000 bushels to 4 million bushels. &bull;&nbsp; Used the heat and steam from drying the distillers grain to supply a heat recovery steam generator that creates electricity for the plant. &bull; Streamlined production by increasing throughput to a point where we're diluting our natural gas cost and our electrical cost-per-gallon of ethanol produced. For example, a motor running is going to draw its electricity base load to power a pump. Once that motor is running at an optimal speed, the efficiency goes way up and you can pump 600 gallons a minute versus 500 gallons a minute. The plant was built with an APACS-plus process control system that was reaching its end-of-life. This means the original equipment manufacturer would not support the technology and software for the long-term. We had three options: &bull; Keep the existing system, and stock up on spare parts and hope for the best. &bull; Replace the entire process control system and hardware, which would be costly. &bull; Take a hybrid approach of upgrading the software while keeping the existing hardware. The hybrid path is the one that we chose. It enabled us to upgrade the process control platform and interfaces, while keeping existing automation equipment, hardware and input/output (I/O) intact&ndash;&ndash;the communication between the process control system and a field device like a motor, pump or flow meter. The hybrid approach allows us to continue to have the latest software and support while using our relatively &ldquo;new&rdquo; and existing hardware and I/O.&nbsp; We chose to migrate to a Siemens PCS 7 APACS-plus OS to realize the following advantages: &bull; Upgraded human machine interface (HMI) graphic screens provide a more user-friendly interface. HMIs are computer graphic interfaces used to monitor and control processes on the plant floor. &bull; Reduced configuration, startup time and maintenance complexity. &bull; Updated client or server architecture while using the existing APACS-plus control system. &bull; New process control (PC) operating system. The HMI upgrade enabled us to extend the life in our installed APACS-plus control system assets with no disruption to production, all while using a new PC operating system. We didn&rsquo;t need to make changes to the APACS-plus project configuration or field I/O hardware, which reduced testing, outage time and cost. We ran the former HMI system and the new system side-by-side for three months to ensure we were confident the system was performing as designed. We fully transitioned to PCS 7 during a scheduled two-day plant shutdown.&nbsp; Additionally, Siemens supplied many of the premium efficiency electrical motors that power the pumps and processes within the plant and are connected to the PCS 7 to ensure the most in uptime and energy efficient operations. The Siemens system helps our staff with troubleshooting and operational consistency and efficiency. The team here really likes that. They also like that it's quicker and there's no lag in the control system. It&rsquo;s pretty bulletproof. Trident Automation Inc., Kaukauna, Wisconsin, was involved with the startup of the original system so they were familiar with its features and functionality and were instrumental in making the migration seamless. They also helped to effectively and quickly train the operators on the new enhancements available in the new system. Results Carbon Green BioEnergy has increased its production from 37 MMgy in 2009 to 55 MMgy today&mdash;and we intend to increase production to 60 MMgy by 2015. Other benefits from the new system include: &bull; Enhanced trending and data analysis make it easy for operators and the process/management team to manage production and troubleshoot.&nbsp; &bull; Alarm management tools help to identify issues more accurately and improve production. Think of an alarm that tells you a motor needs maintenance, or a process is not running optimally. This helps the maintenance team to fix or repair a problem before it stops production.&nbsp;&nbsp; &bull; The historian interface has improved the ability to fine-tune the process and improve consistency and energy efficiency by looking at a process over time and understanding how to make it more consistent. &bull; The Siemens software update service enables us to keep our control software up-to-date at a fraction of the cost of buying new. This enables CGB to streamline its Microsoft security patches and keep the Microsoft operating system current. Since we installed the PCS 7, we&rsquo;ve been able to more quickly debottleneck the facility and improve energy efficiency. Basically, we&rsquo;ve been able to take the waves or variances out of the process and it has enhanced the controllability and reliability of the plant. With the plant running optimally, we support 450 local farmers, most within 50 miles of the plant, by purchasing 18 million bushels of corn annually at a market value of more than $100 million. This helps the local agricultural community have a stable buyer at fair market price. Growing corn in the area is profitable again and this is good news for the community.&nbsp;&nbsp;&nbsp; Author: Mitch Miller CEO, Carbon Green BioEnergy, LLC 616-374-4000 mmiller@cgbioenergy.com
&nbsp;
&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt;&lt; SIDE BAR &gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;
How Sustainable is CGB's Ethanol Production? Ethanol Production Creates Food &amp; Fuel
&bull; 100 percent of Carbon Green BioEnergy&rsquo;s corn starch is used for ethanol production. The plant produces enough E85 to fuel a &nbsp;&nbsp; 2012 Chevy Malibu for 1 billion miles. &bull; 100 percent of the corn&rsquo;s protein, fat and fiber is made into DDGS, enough to provide a highly nutritious livestock feed to as &nbsp;&nbsp; many cattle needed to feed 2.2 million people annually. &bull; CGB uses brewery waste from nearby Beer City USA in Grand Rapids, Michigan, to make ethanol and distillers dried grain. &bull; Uses only corn from local farmers, mostly within 50 miles. &bull; CGB uses waste heat from the DDGS drying process to make steam for the plant. &bull; With tighter process controls, CGB has increased ethanol production without increasing water consumption. &bull; 2014 energy return on investment is 2.82. The plant gets 2.82 Btu in output for each Btu of input.
PLANT AT-A-GLANCE
&bull; Produces 55 million gallons of ethanol/year. &bull; Buys 18 million bushels of corn/year from 450 local farmers ($100 million). &bull; 4 million bushels of grain storage. &bull; Near zero waste. &bull; Blends 500,000 gallons of E85 onsite each month.

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Carbon Green BioEnergy's Mitch Miller details a plant turnaround effort. The company purchased a mothballed plant in Lake Odessa, Michigan, and brought it back online. 

Control System Upgrade Yields Greater Sustainability and Output 

With today's low corn prices and high production levels, ethanol producers are likely not thinking about supply-chain sustainability. But it's always smart to prepare for the future. Because corn is a key part of the ethanol supply chain, awareness of the long-term forecast is essential.&nbsp;
The next few decades promise to be an incredible time of volatility, opportunity and risk. For food companies, ethanol manufacturers and retailers, the key to minimizing the negatives, capturing new markets and keeping projected cost increases lower than competitors is in having a deep understanding and better risk management of their supply chain. This includes the ability to find and create new shared value streams with the most resilient, productive and sustainable companies in the supply chain. Data collection is a critical enabler of this competitive advantage pathway. Sustainability, at its simplest, is the ability to meet the needs of the present without comprising the ability of future generations to meet their own needs. Further evidence of how important the role of data collection and analysis is becoming in the food and agricultural space (among many others) is in a new survey out on what high level corporate executives have on their "top of mind" for the next year. Three main themes emerged: 1. Supply chain management is becoming more complex. Consumer goods and retail executives&nbsp;&nbsp; ranked this as their No. 1 challenge and the one most likely to receive increased funding this year. 2. There is a big shift in executive attention toward the need for data and the impact data analysis has in helping understand and secure supply chains.&nbsp; 3. Sustainability and corporate social responsibility issues are increasingly driving decisions. Notable findings from the survey include: &bull; 56 percent of consumer goods and retail business leaders cited data analytics as being important to their firm&rsquo;s strategy, making it the highest-ranked strategic area in the survey. &bull; 44 percent of business leaders cited traceability and transparency around end-to-end value chains as a top goal for their company just ahead of reducing waste and emissions (42 percent) and sustainable sourcing (41 percent). &bull; 52 percent of respondents reported that they have a strong or good capability to meet their sustainability agenda. Reputation and brand (41 percent), consumer demand (34 percent) and competition (28 percent) were cited as three main drivers behind sustainability. &bull; 56 percent said health, corporate social responsibility and sustainability priorities are very important to their business. &bull; 42 percent placed supply chain management at the top of their list for increased investment over the next 12 months. The take-away from this survey is that the folks who ultimately buy commodities feel the need to invest in gathering information to make informed decisions about their supply chain, sustainability priorities and increased transparency. The only way to do this is through gathering data from the ground up, which means the push for sustainability assessments or audits is only going to increase. We speak often to farmers, agricultural associations and food companies on how important it is to capture data and to make sure it is working for them first, before reporting it on to the larger supply chain. Taking a more systematic approach toward layering a wider array of data (like sustainability and financial) into long-term business planning processes can help individual farm operations and food companies make better decisions and reduce long-term costs the same way it helps large corporations. It will also get these entities ready for the sustainability reporting onslaught that is coming their way. The decision before the agricultural industry is increasingly becoming how and who will provide data about their growing performance, not if data will be collected. As the retail industry continues to ask questions about the sustainability of the products they sell, fuel and shipping will also be impacted. So, in addition to agriculture, ethanol and other fuels will be looked at with the sustainability lens as well. This is a good thing if businesses can demonstrate environmental consciousness using data. Now is the time to start thinking about your sustainability plan to position yourself to be the market leader. Authors: Sara Hessenflow Harper Sustainability Director, Vela Environmental, Kennedy and Coe LLC 202-544-8200 sharper@kcoe.com Contributor: Donna Funk Principal, Kennedy and Coe

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Supply-chain sustainability is something that should be a high priority for ethanol producers, writes Sara Hessenflow Harper. Data collection is a critical component of that. 

Sustainability Assessments Likely to Increase

USGC announces regional director The U.S. Grains Council has promoted Kevin Roepke to USGC regional director of South and Southeast Asia, based in Kuala Lumpur, Malaysia. Roepke has served as the USGC&rsquo;s director of trade development in the China office since January. As regional director of South and Southeast Asia, Roepke will identify and address all relevant trade, technical and policy factors relevant to building and maintaining the market for U.S. coarse grains and co-products. Roepke joined the USGC in 2011 as the manager of international operations for marketing. Prior to joining the USGC, he served in various trading and merchandising positions with Archer Daniels Midland Co.&nbsp; Benson Hill Biosystems, CTC announce partnership Benson Hill Biosystems, an agricultural biotechnology company, and Centro de Tecnologia Canavieira, a market leader in Brazilian sugarcane, have announced the establishment of a partnership to develop and commercialize traits to increase sugarcane crop yield. The partnership will involve translation of Benson Hill&rsquo;s technology from its Setaria viridis model plant platform to CTC&rsquo;s commercial sugarcane varieties for further development and commercialization. NCGA announces board members, presents award&nbsp; Delegates attending the National Corn Growers Association&rsquo;s Corn Congress in Washington recently elected five farmers to serve on the corn board.&nbsp; Taking office on Oct. 1, the start of NCGA&rsquo;s 2015 fiscal year, is new board member Jim Zimmerman of Wisconsin.&nbsp; Current board members Bob Bowman of Iowa, Lynn Chrisp of Nebraska, Kevin Skunes of North Dakota and Paul Taylor of Illinois were re-elected. In addition, Martin Barbre, organization president, presented NCGA&rsquo;s 2014 President&rsquo;s Award to Rep. John M. Shimkus, R-Ill. The award is given annually at NCGA&rsquo;s Corn Congress meeting in Washington to a leader who has worked to advance issues important to corn growers and agriculture.&nbsp; Lawrence Livermore scientists named to &lsquo;Most Influential&rsquo; list Lawrence Livermore scientists Charles Westbrook and William Pitz have been named to Thomson Reuters list of&nbsp; "The World's Most Influential Scientific Minds." Their area of research is in developing chemical kinetic mechanisms for conventional fuels such as gasoline and diesel fuel, and for next-generation fuels, such as new types of biofuels being considered as potential replacements for fossil fuels. The chemical kinetic mechanism Westbrook and Pitz developed is used in computer codes to simulate combustion in internal combustion engines used in cars and trucks. These engine simulation codes can be used to optimize engine design to increase efficiency and reduce pollutant emissions. Cool Planet announces construction, operations team &nbsp;&nbsp;&nbsp; Cool Planet Energy Systems has announced the team that will lead construction and operations of its first commercial plant in the U.S. Randy Tucker will serve as vice president of capital projects, with overall responsibility for directing the project. He is joining the company after more than 25 years in project management and technical leadership roles. Before joining Cool Planet, he served as vice president of IT services for Peabody Energy. Robert Djelveh will serve as vice president of supply chain. He is an internationally recognized leader in supply chain management and procurement, having worked extensively in Europe, North America and Asia. Most recently, he co-led PricewaterhouseCooper&rsquo;s and PRTM&rsquo;s supply chains and energy groups in China. Rex Downen will serve as construction manager on-site at the facility in Alexandria, Louisiana. He brings more than 30 years of experience as a project manager and site construction manager in the oil and gas, petrochemical and power generation industries. He has managed refinery construction and other large scale projects for ConocoPhillips and others. Tim Palculict will serve as plant manager, with responsibility for plant operability, bringing the plant online and leading the plant&rsquo;s operations. Palculict has more than 25 years of experience in plant management, having started up 12 plants in the fuel and petrochemical industries. He began his career with Mobil and has managed plant operations for a number of companies. Hankinson Renewable Energy joins RFA Hankinson Renewable Energy has joined the Renewable Fuels Association. The 132 MMgy North Dakota-based ethanol facility has 51 full-time employees and produces 400,000 tons of dried distillers grain with solubles each year. The plant is owned by Guardian Hankinson LLC, a joint-venture that includes ethanol producers Chippewa Valley Ethanol Co., Heartland Corn Products, Dakota Ethanol LLC, and Kaapa Ethanol LLC. Guardian Hankinson LLC is the third venture by Guardian Energy Management LLC following the acquisition of Guardian Energy LLC in Janesville, Minnesota, and Guardian Energy Holdings LLC in Lima, Ohio. US Water Services adds team member&nbsp; &nbsp;&nbsp;&nbsp; U.S. Water Services Inc. has announced the addition of Shawn Easterly to the its ethanol process technologies team. Easterly will provide energy center consultation and services to biofuels plants across the United States focusing on throughput, production efficiencies, and system optimization.

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Business Briefs

The bottom line is that there&rsquo;s no such thing as a one-size-fits-all energy crop. &ldquo;Some of these have a longer history of research behind them, like switchgrass and poplar, so there is more to go on, but we are always looking for new crops that might fill the niche,&rdquo; says Cathy Ronning, program manager at the U.S. DOE, adding that the agency isn&rsquo;t placing its bets on any certain crop. This year, $12.6 million was awarded to 10 projects developing new cultivars of regionally adapted bioenergy feedstock crops, and in researching the complex interactions between bioenergy feedstock plants and their environment. A number of them build on existing knowledge of some of the dedicated energy crops with cellulosic ethanol feedstock potential including sorghum, switchgrass, poplar and miscanthus. The 10 projects were selected through the DOE-USDA Plant Feedstock Genomics program, which was created in 2006, combining the DOE&rsquo;s know-how in genomic sequencing and biofuel production analysis and the USDA&rsquo;s experience in crop improvement. The program supports the fundamental research of these energy crops for bioenergy production. &ldquo;In the past few decades, there has been tremendous advances in genomics and systems biology approaches,&rdquo; Ronning says. &ldquo;We believe we can use these technologies to speed up the development of these plants in a sustainable and adaptable manner to produce feedstock plants that require fewer inputs, specifically like fertilizer and water.&rdquo; Seeking Sustainability Dedicated energy crops naturally produce more biomass per acre and require less fertilizer, water and other resources than annual field crops. Many can grow in less than optimal conditions with little management, using only marginal lands to retain land for food crops. Some farmers are hesitant to plant the crops, however, because of unfamiliarity with growing practices for existing varieties. Also, the logistics of harvest, transportation and storage for large-scale commercialization of dedicated energy crops has not been fully worked out for commercial-scale biorefineries. Ultimately feedstock is the single largest cost driver for biofuels and, in many cases, the main barrier to cost competitiveness and scalability. Genera Energy Inc. is a company focused on managing this supply chain with various producers and developers to overcome challenges like scalability. &ldquo;Some can take a wide range of feedstocks on any given day, others are more restrictive, and balance is needed of all the agriculture concerns upstream with downstream technology provider requirements on their technology,&rdquo; says Sam Jackson, vice president of business development with Genera Energy. Ceres Inc. also works to improve commercial development with product lines and development programs for high biomass sorghum, sweet sorghum, switchgrass and miscanthus. &ldquo;We have collaborated with a number of industry participants involved in cellulosic biofuels and biopower production,&rdquo; says Gary Koppenjan, communications director with Ceres. &ldquo;These tests have confirmed that biomass from our energy grasses can be converted and processed into various fuels or biobased products, and have provided data we have used to further enhance our energy crops for use with these conversion technologies.&rdquo; Sorghum&rsquo;s Scalability John Mullet, a professor at Texas A&amp;M University, College Station, received $1.23 million for a project focused on improving two main categories of traits that affect the yield of high biomass energy sorghum: water use efficiency and drought resiliency. &ldquo;You need a combination of those two traits in order to build an ideal energy crop for the U.S.,&rdquo; Mullet says. &ldquo;Water in a nonirrigated system is the primary limitation determining yield. That&rsquo;s why this project focuses on improving the plant&rsquo;s ability to use water to make biomass.&rdquo; Ceres has begun commercial development of sorghum. &ldquo;There are well-established agronomic systems for sorghum, it&rsquo;s high-yielding, grows quickly and fits well in with crop rotations, so it has received the most commercial interest to date,&rdquo; Koppenjan says. &ldquo;We have focused our efforts in Brazil where there is existing infrastructure and significant opportunities today for new energy crops to complement first generation feedstocks and increase bioenergy production.&rdquo;&nbsp; Mullet says currently most of the sorghum being used for ethanol production in the U.S. is grain sorghum, but research estimates energy sorghum can produce twice as much biomass and biofuels when optimized. &ldquo;We think it is a very promising commercial product, longer term,&rdquo; Mullet says.
 Another project selected to improve sorghum yield received $1.34 million. Patrick Brown, a quantitative geneticist at the University of Illinois, Urbana-Champaign, is working with a biochemist to characterize novel genetic variants that affect lignocellulosic composition and saccharification yield in bioenergy sorghum and closely related perennial grasses. &ldquo;We are going to look at sorghum lines, and we are going to evaluate them for their agronomic performance,&rdquo; Brown says. &ldquo;Ultimately, what is really of interest is the economic yield per acre of different lines.&rdquo; Modified Miscanthus The perennial miscanthus is being studied by Erik Sacks, at the University of Illinois, Urbana-Champaign, quantifying phenotypic and genetic diversity of miscanthus sacchariflorus. His project is receiving $1.5 million, and the goal is to develop molecular markers associated with traits of that can enable plant breeders to quickly develop improved biomass cultivars of miscanthus giganteus and closely related sugarcanes and energy canes. Right now large-scale production is not commercially feasible for miscanthus because establishment costs are much higher than other energy crops, according to Koppenjan. &ldquo;In miscanthus, we are developing seed-propagated varieties that have the same high-yielding attributes of current types of miscanthus, yet with establishment costs more comparable to other energy crops,&rdquo; Koppenjan says. Chemtex International Inc. is one company that plans to use the crop, among other energy grasses, as a feedstock at its 20 MMgy biorefinery in Clinton, North Carolina. Strengthening Switchgrass Switchgrass is another feedstock for cellulosic ethanol at Chemtex&rsquo;s facility. Abengoa&rsquo;s 25 MMgy biorefinery also plans to utilize switchgrass as a feedstock, among others. Research conducted by Robin Buell, a plant biologist at Michigan State University, East Lansing, received $1 million to identify traits associated with cold hardiness in switchgrass. One of the proposed mechanisms to increase switchgrass biomass is to grow lowland switchgrass cultivars in northern latitudes where they have higher yield potential, due in part, to their significantly later flowering time at these latitudes. Lowland switchgrass is not adapted to the colder winter conditions, however. Research has found that within the collective genetic diversity of the population, alleles, or alternative forms of the same genes, are present that confer cold tolerance. &ldquo;If these alleles could be catalogued and converted into molecular markers, they would facilitate accelerated breeding and provide a mechanism to improve the efficiency of breeding switchgrass cultivars with high biomass and cold hardiness,&rdquo; Buell says. This research has the potential to be applied in breeding programs for switchgrass that can thrive in northern climates. Poplar Potential Woody biomass also falls under the umbrella of energy crops with bioenergy production potential. Amy Brunner&rsquo;s research at the Virginia Polytechnic Institute and State University received $1.43 million for a project that uncovers divergent and convergent regulatory networks that control growth responses to day length and nutrient stress in poplar. &ldquo;The whole goal is to minimize water and nitrogen use, but maximize biomass production,&rdquo; Brunner says. &ldquo;We are really focusing on understanding how these two abiotic signals are perceived by poplar and, hopefully, identify different genes and networks, which could then be used in the future to improve the crop.&rdquo; Greenwood Resources Inc. is currently supplying ZeaChem Inc.&rsquo;s 250,000 gallon-per-year cellulosic biorefinery with hybrid poplar trees from their farms within the vicinity of the plant in Boardman, Oregon. Building a Portfolio Researchers and developers seem to agree that building a portfolio of feedstocks is required for biofuel and biopower production. &ldquo;What we want to see is really high-yielding and durable, sustainable varieties of these crops in multiple regions,&rdquo; Ronning says. Although current focus remains on improving and developing dedicated energy crops, potential for other feedstocks, like tropical grasses and even tobacco, are being considered for the future. &ldquo;I think there are all sorts of opportunities, and as time goes forward there may be other crops that pop up here and there as potential biomass producers,&rdquo; Jackson says. &nbsp;&nbsp;&nbsp; Author: Katie Fletcher Staff Writer, Ethanol Producer Magazine 701-738-4920 kfletcher@bbiinternational.com

HARVEST TIME:  Biomass sorghum has received a lot of interest to date.  


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PERENNIAL FEEDSTOCK: The rapid growth and high biomass yield of miscanthus make it an ideal contender for biofuel production. 

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POPLAR PLOT TWIST:  Poplars grow at GreenWood Resources Inc.â€™s Advanced Hardwood Biofuels Northwest demonstration site near Jefferson, Oregon.  


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GENETIC DIVERSITY: Sorghum is used for multiple uses in a variety of forms, including sweet, forage, grain or high-biomass. Sweet sorghum and high-biomass sorghum are among the 10 DOE-selected projects.
 

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GOING GREEN: Switchgrass grows at Great Lake Bioenergy Research Center's fields at the Arlington Agricultural Research Station in Arlington, Wisconsin. 

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SWITCHGRASS SLURRY:  A beaker contains switchgrass that has been pretreated and hydrolyzed to prepare it for fermentation to ethanol. 


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Many dedicated energy crops hold promise as feedstocks for next-generation ethanol. Extensive R&D is still needed, however, to overcome the challenges in making these plants viable for commercial applications.

Boosting Biomass for Bioenergy

Jim Hettenhaus is a passionate advocate of wet biomass storage. A longtime member of the ethanol industry who helped plan the first Fuel Ethanol Workshop, he is the managing director of CEA Inc., a consulting business. Hettenhaus has been talking about the advantages of wet biomass storage over dry bales for years now. It&rsquo;s a sustainable, economic and reliable method with a favorable life cycle with the added benefit of being used successfully on sugarcane bagasse bound for pulp and paper mills, he says. Back in the late 1990s, he started work with others on a National Renewable Energy Laboratory-sponsored study of wet biomass storage, followed by doing work for the USDA in the 2000s. He&rsquo;s spoken about the advantages of wet biomass storage at multiple conferences, including this year&rsquo;s FEW. He has also had many conversations about it, some with developers actively working to build cellulosic ethanol plants. So far, however, the major players in building cellulosic ethanol plants are utilizing dry bales for feedstock storage. Hettenhaus believes that&rsquo;s because change is difficult to embrace as dry bales is the storage method understood in the agriculture industry. &ldquo;It&rsquo;s so easy to do what they are doing now,&rdquo; he says. In addition, nearly two decades ago, when he started investigating the idea of wet biomass storage, it was thought that the cellulosic industry would be established by the mid- to late-2000s. Now the reports commissioned by the USDA and NREL are many years old and contain dated information about transporting biomass via railroad, a proposition that obviously wouldn&rsquo;t be viable today. Still, the concept of wet biomass storage is as relevant as ever. &ldquo;I just think that I was too soon, too soon, too soon,&rdquo; he says. One of the big advantages of wet biomass over dry is protection from the risk of fire, he says, citing multiple instances of bale fires. In addition, wet biomass takes 10 times less storage space than dry biomass and results in less than 5 percent storage loss, compared to more than 10 percent in dry bale storage. It also allows biomass to be collected wet in the field, rather than relying on the uncertain schedule of field drying. For a reliable supply of biofuel feedstock, Hettenhaus doesn&rsquo;t believe dry bales are the way to go, with the exception of Idaho and further west, where conditions are dry and irrigation is used.&nbsp; Finally, it has a positive effect on processing cost due to reduced ash and soluables content, improved feedstock quality and increased feedstock yield. From 2005 to 2008, a stover storage validation trial was conducted using a modified version of the Ritter method. About 700 dry tons of corn stover was piled 35 feet high in Imperial, Nebraska, and samples were analyzed and converted to ethanol at a Purdue University laboratory, using standard methods. Although there are many methods for wet biomass storage, Hettenhaus says, one is to wash and shred the biomass, pumping a slurry with 3 percent stover solids to a storage pad. As the liquid drains though the pile, it is recirculated until the pile reaches the desired height. Water circulation compresses the pile and removes dirt and soluable material that would have to be hauled away at the end of the process anyway. &ldquo;I&rsquo;m not a plant operator anymore but if I were, I&rsquo;d jump up and down, I&rsquo;d say, &lsquo;Why aren&rsquo;t you washing this? &hellip; You need to remove this before it gets into the plant,&rsquo;&rdquo; he says, adding that the residue removed contains nutrients, which can be returned to the fields as fertilizer. Another big advantage was that the holocellulose (cellulose and hemicellulose) concentration increased from 59 to 68 percent. And, fermentation actually starts in the pile. &ldquo;Wild organisms begin the fermentation of the small amount of soluble sugar in the pile, forming organic acids,&rdquo; he says. &ldquo;The acids lower the pH and the anaerobic conditions preserve the corn stover pile.&rdquo; The Ritter method works on corn stover, straw, grasses, kenaf, and bagasse. It&rsquo;s not a new storage method. &ldquo;Bagasse is the feedstock most widely stored in this manner to supply pulp mills in sugarcane growing areas (such as) Central and South America, South Africa, India and Thailand,&rdquo; he says, adding that the method has been used for more than 50 years. The NREL sponsored report, which was published in 2003, included information about the results of successful wet storage studies that were conducted using sugarcane bagasse. &ldquo;Between 1920 and 1960, many skeptics expected the material to rot in a wet pile,&rdquo; the report said. &ldquo;When the method was a huge success, a number of studies were undertaken to better understand the wet storage process, where the material is completely saturated to its water-holding capability.&rdquo; Two particularly well-documented studies took place in Argentina and South Africa. In Argentina in 1969 and 1970, wet stored bagasse showed, to the researcher&rsquo;s surprise, no measurable yield loss and the advantage of improved feedstock quality and consistency, better pulping results and a better final product quality. The South African study, which was conducted several years later, found that pulp produced from bagasse stored using the Ritter method was superior in physical strength, freeness and chemical consumption. Hettenhaus would like to see the biofuel industry take a page from years of successful wet storage by pulp and paper mills. If wet biomass storage were utilized by the cellulosic ethanol industry, the biomass collection area could shrink to the local dry mill corn supply. In addition, harvesters could go to a one-pass harvest of corn stover. Finally, the way he looks at it, it&rsquo;s a wasted step to dry biomass only to get it wet again during the fermentation process. &ldquo;I think we are missing an opportunity there,&rdquo; he says. Author: Holly Jessen Managing Editor, Ethanol Producer Magazine 701-738-4946 hjessen@bbiinternational.com

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The idea of wet biomass storage has yet to catch on in the cellulosic industry, despite long-term use in the pulp and paper industry.

Ahead of His Time 

Biomass is one of the most abundant natural resources. It comes in many varieties, including virgin woods, energy crops, agricultural residues, food waste and even municipal and industrial wastes. Though not all biomass is created equal, it is almost always organic, and under the right conditions, it&rsquo;s a sustainable source of energy that produces significantly fewer carbon emissions than fossil resources. When it comes to turning biomass into biofuels, the key is to convert energy stored in the biomass from the sun through photosynthesis into a more readily usable form. In the case of Project Liberty, that&rsquo;s ethanol. Because the goal usually is to maximize yields in this conversion, the best choice of biomass may be different, depending on the proximity of the biorefinery to its biomass source. Proximity is important, because transportation can push the per-unit cost of biomass beyond the profitability point. At Project Liberty in Emmetsburg, Iowa, we chose corn stover&mdash;a mix of cobs, stalks, husks and leaves&mdash;because it is readily available and it is a byproduct of the corn harvesting process. It requires no farming inputs, such as extra tillage, planting or fertilizing, so it has minimal to no effect on agronomic soil sustainability when it is removed responsibly from the field. In addition, synergies between the cellulosic and grain-ethanol refineries, in terms of the excess energy created in the cellulosic process can be shared with Poet Biorefining&rsquo;s Emmetsburg corn-ethanol facility to reduce greenhouse gas emissions significantly. Our plan in choosing Emmetsburg was to give our first project using the cellulosic conversion process its best chance of success. Although corn stover is a byproduct of corn and is harvested from fields that are ideal for farming, many biomass feedstocks, such as miscanthus, switchgrass and other energy grasses, can be cultivated from more marginal farmlands in arid locations, which require fewer inputs and attention. Many also can produce two crops per year, which can be attractive for harvesting and storage. Because Poet has been a pioneer in biomass harvesting and soil agronomics research since 2006, the company had amassed a significant knowledge base. This experience helped all involved understand not only the agronomic details of harvesting corn stover, but also the &ldquo;soft&rdquo; elements, which include relationship building and working with and educating farmers about sustainably removing this important element in soil conservation from their fields. As farmers (called growers in the Poet-DSM system) understood the financial and farm-related benefits of stover harvesting, more than 300 area growers have now readily committed to providing their biomass to help in feeding the Liberty biorefinery&rsquo;s annual needs. One of the changes that would be required of the growers was in harvesting the stover. When looking for sustainable harvest methods, we researched several different collection methods to find the one that best met our main criteria: minimal nutrient removal, leaving enough residue for erosion control, and maintaining current soil organic matter and carbon levels. The most ideal method, due to lower dirt contamination levels, fewer passes over the field and smaller nutrient impact, was second pass baling. These bales contain less contamination because the material isn&rsquo;t being raked or chopped. Since raking is avoided, at least one additional pass across the field is eliminated, compared to traditional stover baling. By using this method, only 20 to 25 percent of the above-ground corn residue is collected. When it comes to handling and storage, biomass is bulky and requires significant space, especially since corn stover is harvested once annually. Because of the desired composition as a feedstock and to maximize the sustainability of stover harvesting, Project Liberty utilizes EZ Bales, a 1-ton bale comprising roughly&nbsp; 33 percent cobs, 43 percent husks and leaves, 16 percent stalks and 8 percent ash. The EZ Bale process typically results in less nutrient replacement per ton of removed biomass than traditional stover collection processes. Although Project Liberty has a 22-acre stackyard for buffering biomass, the majority of the EZ bales are decentrally stored in grower fields, both to reduce the risk of loss due to fire and limit dedicated acreage at the biorefinery. As of press time, our Poet-DSM team has already begun producing ethanol using Project Liberty&rsquo;s cellulosic process. We look forward to working with other industry producers in expanding the number of cellulosic ethanol biorefineries in the U.S. and abroad. Author: Adam Wirt Biomass Logistics Director, Poet LLC 605-965-2219 Adam.Wirt@POET.com

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Adam Wirt of Poet writes about corn stover, the biomass feedstock of Project Liberty. Poet-DSM is currently producing ethanol at its commercial-scale facility. 

Drilling Into the Details  of Corn Stover Biomass  

Call us lucky or good, with the timing of this issue focused on biomass feedstocks. At press time in early September, a <a href="http://www.ethanolproducer.com/articles/11435/victory-for-project-liberty" target="_blank">grand opening was held for Project Liberty</a>, Poet-DSM&rsquo;s high-profile cellulosic ethanol plant in Iowa. Our team was there and we&rsquo;ve got photos. In addition, the National Advanced Biofuels Conference &amp; Expo is taking place in Minneapolis, Minnesota, Oct. 13-15, and our theme complements the agenda by design. And finally, October marks the earliest stages of America&rsquo;s corn harvest, and with it another round of stover collection campaigns&mdash;trial runs no more. While corn fiber and stover are, respectively, the favorite feedstocks of today&rsquo;s advanced and cellulosic ethanol runs, we can&rsquo;t ignore the promise of dedicated energy crops. So we begin this month with a vital energy crop roundup. In <a href="http://www.ethanolproducer.com/articles/11436/boosting-biomass-for-bioenergy" target="_blank">&ldquo;Boosting Biomass for Bioenergy,&rdquo;</a> EPM Staff Writer Katie Fletcher summarizes the energy crop research supported by the DOE-USDA Plant Feedstock Genomics program, which aims to accelerate the rise of super bioenergy plants. These resilient future crops, like energy sorghum, switchgrass, poplar and miscanthus, are being designed for superior agronomic performance. They&rsquo;ll make fabulous ethanol feedstocks, say scientists, because they have the latent potential to grow fast with low inputs and big yields. Time will tell. Until those megaplants get here, producers of next-generation ethanol will make do with the nonstarch components of corn, mostly stover. Transporting and storing all those stalks and leaves is cumbersome, though, and that makes densification strategies attractive. In <a href="http://www.ethanolproducer.com/articles/11434/stover-pellets-pack-in-the-pounds" target="_blank">&ldquo;Stover Pellets Pack in the Pounds,&rdquo;</a> we learn that pelletizing corn stover improves the material&rsquo;s bulk density four-fold, and also renders its sugars more accessible during enzymatic conversion. Stover pelletizes easily, reports EPM Senior Editor Susanne Retka Schill, but bringing a densified feedstock to an ethanol plant&rsquo;s door brings its own set of challenges. For broader perspective, we report on another alternative to dry biomass storage. In <a href="http://www.ethanolproducer.com/articles/11433/ahead-of-his-time" target="_blank">&ldquo;Ahead of His Time,&rdquo;</a> EPM Managing Editor Holly Jessen profiles Jim Hettenhaus of CEA Inc., who has been a purveyor and champion of biomass wet storage for years. And if you think pelletization of corn stover offers strong benefits, consider the upside of wet storage. Hettenhaus tells us that wet biomass takes up 10 times less space than dry biomass and loses less of its volume during storage. And that&rsquo;s not all. Wet storage, not surprisingly, allows biomass to be collected wet, doing away with dry-time scheduling. Hettenhaus says a wet approach also results in improved feedstock quality and process performance. Ultimately, he says, producers are wasting time, energy and money drying biomass only to get it wet again during the fermentation process. &nbsp; &nbsp;&nbsp;

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The October issue of Ethanol Producer Magazine is packed with on-theme content, writes Tom Bryan. The biomass feedstocks issue contains information about Project Liberty, dedicated energy crops, pelletized corn stover and wet biomass storage. 

Biomass Transformations

The consolidation of the ethanol industry is happening fast and, as a result, it is a stronger industry than it was even 10 years ago. Consolidation brings financial strength, greater vertical integration and diversification. It was the individual farmers who built this industry one plant at a time. Now even those individual farmers are banding together and buying other ethanol plants and consolidating their base. A few examples of consolidation are cooperatives like Big River Resources. They began in 1992 in West Burlington, Iowa, with one plant. The cooperative now owns four plants and employs 240 people. Poet had a humble beginning in Wanamingo, Minnesota, in 1983, and it now operates 27 ethanol plants that produce over 1.7 billion gallons annually. Valero, based in Houston, Texas, owns 11 ethanol plants across the United States with capacity to produce over 1.3 billion gallons of ethanol annually. Consolidation happens in every industry, because in today&rsquo;s world, it&rsquo;s difficult to compete as a small stand-alone operation unless the conditions are ideal. With consolidation comes the ability to have ready cash to take advantage of opportunities as they arise. Often consolidation provides the ability for cost- saving vertical integration and product diversification. This allows companies the ability to capitalize changes in market conditions and shift production towards growth markets. I&rsquo;m not inferring that unless an ethanol plant is part of a larger cooperative or corporation, it cannot survive or even thrive. What I am saying is that they are more vulnerable to changes in the market, to rises in grain prices or reductions in oil prices or both, simultaneously. Vertical integration helps not only the multiplant conglomerates but the individual stand-alone plants as well. Corn oil extraction provides the opportunity to add another product line. A number of ethanol plants are now exploring biodiesel production with the extracted corn oil. As the cellulosic technology continues to develop, ethanol plants of all sizes will be able to extract more ethanol per bushel by converting the cellulose contained in the distillers grains. This will provide an even better, higher-protein distillers grains that is worth more per ton. There is strength in numbers, and owning multiple ethanol plants allows for greater consistency in the production process, as well as the consolidation of maintenance procedures and increase purchasing power to help keep costs down. When you are negotiating for unit trains of grain it&rsquo;s almost always more cost-effective than negotiating for truckloads of grain. So, while the individual stand-alone plant still can flourish, we will likely continue to see continued consolidation. I believe, in the long run, this consolidation will be what keeps the industry strong and profitable, with greatly improved economies of scale. That&rsquo;s the way I see it. Author: Mike Bryan Chairman, BBI International mbryan@bbiinternational.com

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Consolidation is making the ethanol industry stronger, writes Mike Bryan. Companies that do not consolidate can still survive or even thrive but they are more vulnerable to changes in the market and commodities price changes. 

With Consolidation Comes Strength

Walt Disney once said, &ldquo;If you can dream it, you can do it.&rdquo; Disney&rsquo;s ethos is true today as cellulosic ethanol emerges from a long-shot idea into a full-fledged reality. Cellulosic ethanol production came to Iowa this summer as Quad County Corn Processors produced ethanol from corn-kernel fiber at its bolt-on facility in Galva. I had the honor of being present as it debuted the completed Adding Cellulosic Ethanol (ACE) project, which enables Quad County Corn Processors to produce 6 percent more ethanol from the same kernel used to make conventional ethanol.&nbsp; The state-of-the-art facility is a prime example of next-generation biofuels being built on the solid foundation of conventional ethanol. In 2002, Quad County Corn Processors began conventional ethanol production. It cultivated its production process for more than 12 years and established the baseline technology needed to develop and refine its patented cellulosic technology. Its hard work paid off and it now has the technology to produce 2 MMgy of cellulosic ethanol. Quad County Corn Processors isn&rsquo;t the first&mdash;or the only&mdash;company to break onto the cellulosic scene this year as technological advancements are being made with other feedstocks as well. Poet-DSM is producing cellulosic ethanol using corn-crop residue at its facility in Emmetsburg, Iowa. DuPont Cellulosic Ethanol is working to create cellulosic ethanol from corn stover and Abengoa Bioenergy developed the technology to produce cellulosic ethanol from agricultural residue, dedicated energy crops and prairie grasses. Additional projects are under way in more than 20 states. We are witnessing a turning point in next-generation biofuels as cellulosic ethanol begins entering the market. But we can&rsquo;t stop here. The future of domestically produced cellulosic ethanol requires continued investment and investors require certainty. The continued development and expansion of American-made advanced biofuels depends on the Renewable Fuel Standard. A stable RFS will give investors the certainty they need to develop additional cellulosic plants in the United States. Conversely, an unstable or weakened program will lead investors to move their projects abroad, sacrificing American jobs. The United States prides itself on innovation and advancement. Today, 67 percent of advanced biofuel ventures are based in the United States, ahead of China, Germany, France and Brazil. Americans must fight for a strong RFS so the United States can continue to lead the world in the advancement of next-generation biofuels. It&rsquo;s important to note that this milestone in cellulosic production didn&rsquo;t come without setbacks. Thomas Watson, founder of IBM, once said that &ldquo;the way to succeed is to double your failure rate.&rdquo; We hit some stumbling blocks along the way but the reward is seeing these plants come online and realizing that the future of ethanol is here today.
It&rsquo;s no longer just a dream.&nbsp;
Author: Bob Dinneen President and CEO Renewable Fuels Association 202-289-3835&nbsp;
&nbsp;
&nbsp;

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Quad County Corn Processors'  state-of-the-art facility is now producing cellulosic ethanol from corn-kernel fiber. What was once a long shot has now become a reality, writes Bob Dinneen. 

The Future is Here 

No, that&rsquo;s not a misprint. Most of us have heard (or delivered) that phrase&rsquo;s opposite at some point in our lives, &ldquo;It&rsquo;s not you, &hellip; it&rsquo;s me.&rdquo; But this isn&rsquo;t an &ldquo;advice for the lovelorn&rdquo; column, and I have no interest in starting one. The title of this article means exactly what is says. Earlier this year, Brian Jennings wrote about the American Coalition for Ethanol&rsquo;s &ldquo;Power by People&rdquo; campaign and how we are focusing on the stories of the people who built the ethanol industry and people from communities surrounding ethanol plants who have benefitted from the creation of these large locally owned energy production businesses in their neighborhoods. We are focusing on these stories, delivered by these people, because no matter how well ACE and other groups tell them, people almost always respond better to their peers who have been there and done that. ACE&rsquo;s market development efforts have always tried to follow similar advice. Part of that job is helping fuel distributors and convenience store owners and operators understand ethanol. But it is equally&mdash;or maybe even more important&mdash;to help ethanol people understand fuel marketers and retailers. At the ACE Conference in Minneapolis in August, attendees learned a lot about what fuel marketers want and need from two of the most successful ethanol retailers in the nation. Kent Satrang, CEO of PetroServe USA, and Bruce Vollan, vice president of Vollan Oil, told conference attendees why they installed blender pumps and why they sell E85, E15 and other high ethanol blends to their customers. They said it wasn&rsquo;t that difficult, customers like it, no one has complained or sued them, and that E85, E15, and E30 have made them more profitable. They also said their sales of ethanol were well (nearly 300 percent) above any so-called &ldquo;blend wall,&rdquo; and that renewable identification numbers (RINs) added to their profits and weren&rsquo;t that difficult to keep track of.&nbsp; Those statements are 180 degrees opposite what the American Petroleum Institute and other petroleum groups have been telling Congress and America. They&rsquo;ve said selling 15 percent ethanol or more was unbelievably expensive, customers don&rsquo;t want it and retailers will get sued and have to pay for all sorts of damage. Oil apologists continue to say it&rsquo;s impossible to sell more than 10 percent ethanol and that RINs are expensive and very hard to track. It&rsquo;s frustrating to know that a lot of important and influential people actually believe those Big Oil lies, even though there aren&rsquo;t any real people out there who can validate their claims. Apparently &ldquo;making something up and saying it frequently&rdquo; is the standard of truth required by much of the U.S. media and Congress. Satrang and Vollan didn&rsquo;t talk about politics much when asked what we can do to help them, other than mentioning frustration with Reid vapor pressure regulations that causes them to have to relabel E15 dispensers twice a year. Their bigger concerns were oil companies and petroleum groups that keep putting up more roadblocks to keep station owners from selling E15 and higher blends of ethanol. Our industry has created a number of programs that were supposed to convince retailers to sell higher blends of ethanol. Unfortunately, many of those programs have been based on what we think fuel retailers need, not what they told us they need. Ultimately, we will only see real marketplace movement, when we talk to fuel retailers and tell them, &ldquo;It&rsquo;s not me, it&rsquo;s you,&rdquo; and then create programs that address what marketers really need. &nbsp; Author: Ron Lamberty Senior Vice President American Coalition for Ethanol 605-334-3381 rlamberty@ethanol.org

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Rather than creating programs to convince retailers to sell higher blends of ethanol, the industry should talk to fuel retailers and create programs that address what marketers really need, writes  Ron Lamberty. 

It's Not Me, It's You  

Biodiesel produced from corn distillers oil (CDO) is assigned an extremely low carbon intensity (CI) score under the California Low Carbon Fuel Standard, making it a tremendously attractive compliance option for regulated parties. In fact, at just 4.0 grams of CO2-equivalent per mega joule (g/MJ), CDO biodiesel has the lowest CI score of any approved LCFS fuel pathway listed in Table 6 in the CI lookup tables. As an illustration of the high compliance value of CDO biodiesel, consider that blending just 1 gallon generates the same amount of LCFS credit in 2014 as blending nearly 13 gallons of ethanol with a CI score of 85 g/MJ. For these reasons, CDO biodiesel has earned the nickname of &ldquo;the golden gallon&rdquo; in the California market. California Air Resources Board data show that use of CDO biodiesel has increased exponentially in the state, rising from virtually zero in 2011 and 2012 to more than 6 million gallons in each of the two most recent quarters for which data is available. In the first quarter this year, CDO-derived biodiesel accounted for more than 40 percent of the total volume of biodiesel used in California, according to CARB data. In normal functioning markets, the high compliance value of CDO biodiesel would be reflected in the price buyers (i.e., regulated parties) are willing to pay for the fuel. Anecdotal evidence suggests sellers of CDO biodiesel may indeed be receiving a premium price for the fuel in the California market, but the size of such premiums is not publicly reported. However, because the market value of LCFS credits is a known variable, the theoretical price premium for CDO biodiesel can be easily approximated. For example, if the market price for one LCFS credit is $50 (the average price during Q1), regulated parties should be willing to pay a 59-cent-per-gallon premium for CDO biodiesel over forms of diesel that exactly meet the 2014 diesel CI requirement of 97.05 g/MJ. Average credit values peaked at $79 in December 2013, meaning regulated parties should have, in theory, been willing to pay a 94-cent-per-gallon premium for CDO biodiesel at that time. It does not, however, appear that price premiums for CDO biodiesel are being shared with the upstream supply chain. There is no evidence that suppliers of the CDO feedstock (i.e., corn ethanol plants) are receiving any premium value for oil that is processed into biodiesel and delivered to the California market. Given that roughly 7.5 pounds of CDO are needed to produce 1 gallon of biodiesel, the CDO biodiesel premium associated with a $50 LCFS credit price would be equivalent to a price premium of nearly 8 cents per pound of CDO (versus CDO destined for other markets or uses where no compliance value exists). Of course, the biodiesel producer selling CDO biodiesel into California at a premium would not likely pass along 100 percent of the &ldquo;golden gallon&rdquo; premium to the CDO supplier. Still, even if the biodiesel producer and the CDO producer split the premium 50/50, the CDO producer would theoretically see a four-cent-per-pound increase in the value of every pound of CDO provided to a biodiesel producer who is selling CDO biodiesel into California (assuming a credit value of $50). When Theory Meets Reality Like other products manufactured by corn ethanol facilities, CDO is often distributed by third-party marketing firms. Thus, the ethanol producer may not know whether his CDO is ultimately being used as animal feed or as feedstock for biodiesel (let alone feedstock for biodiesel that will be sold in California). Further, CDO is a commodity, and, like all commodities, its market price is determined by a complex set of supply and demand factors. As long as the primary use of CDO is as an animal feed ingredient, its market value will be largely determined by feed market dynamics and competing fats and oils. Thus, it will be difficult for corn ethanol facilities to capture the LCFS premium value for their CDO until demand for CDO-derived biodiesel in California is substantial enough to reorganize the CDO market structure. Still, given the extremely high compliance value of CDO biodiesel in California, it may behoove ethanol producers who extract CDO to work with their marketers to track more closely the ultimate use of their CDO and consider efforts to better capture some of the additional value associated with the feedstock. Finally, it should be noted that the life-cycle analysis behind CARB&rsquo;s CI value for CDO biodiesel has been the subject of heated debate. Some have argued that CARB essentially treated CDO as a waste product from an ethanol dry mill, and thus the bulk of corn germ (oil) production and processing emissions (including prescribed indirect land use change emissions) were improperly allocated to the other products manufactured by the ethanol plant (i.e., fuel ethanol and distillers grains). Given the debate over CARB&rsquo;s life-cycle analysis of CDO biodiesel, it is possible that the fuel&rsquo;s CI score may be revised in the future to reflect potential changes to CARB&rsquo;s calculations. Author: Geoff Cooper Senior Vice President, Renewable Fuels Association 636-594-2284 GCooper@ethanolrfa.org References: -Table 6. Carbon Intensity Lookup Table for Gasoline and Fuels that Substitute for Gasoline, Table 6.&nbsp; http://www.arb.ca.gov/fuels/lcfs/lu_tables_11282012.pdf -LCFS Reporting Tool Quarterly Summaries. http://www.arb.ca.gov/fuels/lcfs/lrtqsummaries.htm -LCFS Credit Trading Activity Reports.&nbsp; http://www.arb.ca.gov/fuels/lcfs/lrtmonthlycreditreports.htm -Life Cycle Associates LLC prepared a detailed discussion and analysis of the problems with CARB&rsquo;s CDO biodiesel analysis, available here: http://www.arb.ca.gov/lists/lcfs11/5-unnasch_-_lcfs_corn_oil_bd_comments.pdf ONLINE EXCLUSIVE To maximize throughout and yield, start with liquefaction Novozymes offers five tips for optimizing enzyme use.&nbsp; By Laurie Duval&nbsp; To read, visit www.EthanolProducer.com and click on the October issue, under contributions. Or visit http://tinyurl.com/epmenzymes

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Ethanol producers need to learn their corn oil destination by working with marketers. 

Capturing the California 'Golden Gallon'

Pelletizing corn stover offers some tantalizing prospects. Where it is virtually impossible to load a truck to maximum weight with bales, one could with pellets. The densification process improves bulk density by a factor of four. On top of that, stover pellets should be able to be stored and handled much like corn, essentially turning them into a commodity that could be shipped anywhere. The wood products industry has done this, taking the waste stream from sawmills and densifying sawdust into pellets. In some cases, forest slash and thinnings are used as well. Premium pellets are catching on in U.S. regions where high propane and fuel oil costs make pellet heat very affordable. And, the pellet industry is booming right now in the Southeast, where producers are filling the holds of ships with industrial wood pellets bound for European power generators, for cofiring or replacing coal. There is a science to pelletizing. Particle size and distribution, moisture and components such as lignin, protein and starches are critical factors in densification. The lignin in wood, for example, essentially melts under the pressure and heat in a pellet die binding particles together. Starch is the preferred binder for medicine tablets and the protein in alfalfa binds feed pellets. Researchers at Idaho National Laboratory have studied the components and processes in densification, along with the systems in use to manufacture different forms, such as briquettes, range cubes, tablets or pellets. Among the many crops examined, some require binders due to low lignin content, such as switchgrass or miscanthus. Corn stover makes a good durable and dense pellet, reports Jaya Shankar Tumuluru, an expert on pelletizing biomass materials at INL. He was the lead author in a 2011 paper on biomass densification systems for bioenergy application. &ldquo;Stover pelletizes without binders, at a reasonable energy consumption,&rdquo; he says. The lignin and water-soluble carbohydrates in stover make it easier to pelletize than some energy crops. Under the pressure of a pellet die, the moisture and steam help create binding forces, and along with that, the spherical shape of finely ground stover helps with densification. INL research has shown that pelletizing corn stover doesn&rsquo;t introduce recalcitrance and, indeed, may improve an enzymatic conversion process by breaking down some of the structures in the cellulose and hemicellulose to make the sugars more accessible, he adds. &ldquo;Currently the transportation cost saving does not totally offset the costs associated with the pelleting and regrinding at all transportation distances,&rdquo; he says. &ldquo;But that said, we have not quantified additional advantages such as handling and storage benefits of pellets in terms of cost per ton,&rdquo; he continues. &ldquo;If these costs are quantified, then we think the costs can be tipped in favor of pelletization.&rdquo;&nbsp; After all, pellets pack the same weight in about one-fourth the volume. Stover pellets weigh 38 to 40 pounds per cubic foot compared to 10 to 12 pounds per cubic foot for bales. Pellets provide other storage advantages besides a much smaller footprint, he adds. &ldquo;The 5 to 10 percent moisture content improves storability, plus pellets have good flow characteristics in handling systems,&rdquo; he says. &ldquo;A corn grain handling system should be able to handle stover pellets.&rdquo;&nbsp; Applied Technology A Nebraska company is aiming to be among the first to turn cumbersome bales into a storable and transportable commodity, with biorefineries only one of several potential markets. Stover pellets could become a replacement for coal in power generation, and they could revive traction for stover in the feed market. &ldquo;With our technology, 75 percent [of the process] is the same, whether the pellet is going to biochemical, biocombustion or feed,&rdquo; says Russ Zeeck, chief operating officer of Pellet Technology USA.&nbsp; He founded the company six years ago after selling his interests in the ethanol industry where he had worked for 15 years. Studying the cellulosic space, he launched a corn stover based-business, partly because stover itself is a very consistent biomass for cellulosic processes, and partly because, in his assessment, stover will dominate the biomass feedstock scene as energy crops take time to gain ground. Pellet Technology has collaborated with ICM Inc. to realize its goal. Earlier this year, the two companies announced an agreement for ICM to become the engineering, procurement and contracting agent for future facilities and a strategic partner for the development and commercialization of the technology. ICM has helped with engineering and fabrication of system components, and handled last year&rsquo;s expansion of the R&amp;D center in Gretna, Nebraska.&nbsp; Pellet Technology expects to be announcing the first commercial facility soon, Zeeck reports, and should be breaking ground on a full-scale 200,000 ton per year plant in the Midwest by the beginning of the new year. The initial target market is for feed. &ldquo;Why we went with feed is because farmers have issues with stover on the field now,&rdquo; explains Joe Luna, Pellet Technology&rsquo;s biomass and site coordinator. And, though the price of corn has dropped considerably since the drought-driven peak of $8 per bushel sent feeders looking for alternatives, emerging technology in the ethanol industry is likely to impact the livestock industry as well. Low-oil distillers grains is already affecting rations, and the expected move toward removing fiber will require further adjustment. Pellet Technology has patented an engineered feed pellet that transforms stover into a nutrient-dense feed and almost doubles its digestibility, Luna says. And, high-protein distillers grains and syrups from the ethanol process are used in some feed formulations.&nbsp; A big part of Pellet Technology&rsquo;s intellectual property surrounds the grinding and handling of stover. &ldquo;Stover is not an easy animal,&rdquo; Zeeck says, explaining that when ground, stover&rsquo;s very light specific gravity means it handles very differently from ground corn. Engineering solutions had to be found for material handling, transitions and mixing, with a watchful eye on dust control in anticipation of permitting requirements. Another important goal was to reduce the 10 to 12 percent loss factor observed in the typical tub grinders that served as the platform for Pellet Technology&rsquo;s modifications. Another focus was on developing a consistent product, Luna explains. &ldquo;In the traditional method of handling corn stalks&mdash;tub grinders&mdash;there&rsquo;s a pulverizing action, a lot of dust produced and particles anywhere from dust to 2 inches long, depending on the screen size. Part of our intellectual property is to have tight control on particle size.&rdquo;&nbsp; The process also needed to successfully handle bales of different types and sizes, coming from places like northern Nebraska or eastern Iowa. Real world conditions mean those bales will vary from 10 to 50 percent moisture, with some having been sheered once in the field, some twice and some not at all. The pellet process was also extensively modified. Luna explains the company started with a standard pellet press. &ldquo;We changed the roller, the die and the feed system,&rdquo; he explains. &ldquo;We do not use steam in our pelleting, and we control our die temperature.&rdquo;&nbsp; Heat created by friction needs to be controlled to avoid degrading components that impact yields in a biochemical process, he explains, or to avoid affecting the Btu content for cofiring applications. Zeeck and Luna envision Pellet Technology being an add-on for first- or second-generation ethanol facilities, or deployed in co-op fashion. Farmers would bring baled stover in to strategically located facilities where it is pelletized for the intended market and stored for later shipment. Building on the familiar grain-handling model, such a system could aid the development of the biomass market, giving sellers alternative markets and buyers more sources. Sustainability will be a concern, Zeeck adds, to ensure soil and conservation goals are met for farmers. And, though feed is the initial market, there is tremendous potential for growth in the biomass market, based on the sheer volumes that will be required, he adds. &ldquo;We&rsquo;re talking to one biochemical developer who alone is looking at 800,000 tons of stover per year.&rdquo;&nbsp; Author: Susanne Retka Schill Senior Editor, Ethanol Producer Magazine 701-738-4922 sretkaschill@bbiinternational.com

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Systems had to be reengineered by Pellet Technology and partner ICM to successfully grind and convey ground stover. The feedstock has a very light specific gravity.

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Pellet Technologyâ€™s R&D center in Gretna, Nebraska, houses commercial-scale equipment, including a standard 5-ton-per-hour pellet mill and a 15-ton-per-hour bale shredder. 

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Densification reduces transportation cost, improves storability and could open new markets. Are pellets the future for corn stover?

Stover Pellets Pack in the Pounds

Biomass currently provides almost 10 percent of the world&rsquo;s energy supply. Two-thirds of that 10 percent is used for cooking and heating in developing countries, whereas developed countries measure biomass as a replacement for fossil fuels. According to the International Energy Agency&rsquo;s August 2014 Renewable Energy Market Report, global renewable generation will rise by 45 percent and is expected to make up nearly 26 percent of electricity generation by 2020. What does this mean to the future of the pellet industry? Today I offer my top three predictions.
 &bull; Demand for wood pellets for heat will surpass power in all developed nations. In April 2014, Phase II of the United Kingdom&rsquo;s Renewable Heat Incentive came into effect. The Domestic RHI provides seven years of cash payments to families who have converted to wood pellet boilers and other renewable heating systems. Although the nondomestic phase of RHI, launched in 2011, reached a milestone in August&mdash;over a gigawatt of biomass-fired heating systems supported&mdash;the domestic, Phase II adoption was more dramatic. In the first seven weeks, 1,000 installations of renewable energy heating systems were approved. Imagine if 27 European Union members and the rest of the developed nations implement an RHI. In Canada, for example, less than half of the population has access to natural gas. With an RHI-type subsidy, adoption of biomass heating systems could surpass any alternatives. In the U.S., FutureMetrics recently studied 20 northern states and determined that over 4 million households could be regionally and sustainably served by wood pellets. This puts the North American heat market potential at 9.5 million metric tons annually. More than six 500 MW biomass stations would have to be operational to reach that same level. The European Pellet Council predicts 10 million metric tons of demand for the heat market for EU countries, which suggests several countries will meet this prediction. Today, Italy, Denmark, France and Austria have a biomass heat demand that exceeds power. As this increasingly occurs in developed nations around the world, producers should be diversified in terms of pellet type and the geography they serve.
 &bull; Consolidation will replace new pellet builds. Despite the growing demand for biomass in multiple sectors, the advance of new capacity in North America will peak in 2014 and decline over the next five years. According to the Biomass Magazine pellet plant maps, an expected 10 million metric tons of new capacity is planned or under construction in North America today. It is unlikely that all 46 projects will proceed, and this will likely begin a steady decline through 2020.&nbsp; Usually, new investment, particularly when project financing is involved, requires long-term offtake for approval. This means the only demand that will be measured and considered will be the power generators in Europe, as Asian gencos have not demonstrated they will sign long-term offtakes. Instead, current capacity will be aggregated, acquired, and consolidated for greater efficiencies. Approximately 150 plants in the U.S. produce less than 100,000 metric tons per year. Today, with the majority of demand in Europe, most North American shipments occur from six or seven major ports. By acquiring, or at minimum aggregating from multiple inland locations, ocean freight efficiencies and volume redundancy can be achieved by producers.&nbsp; Consolidation also offers investors lower risk and lower cost per ton than a new build.
 &bull; Trading will become a virtual storage alternative. With over 5 million metric tons of transcontinental trade flows, ports such as Rotterdam are experiencing higher pellet volume each year. To manage this flow, some significant pellet storage investments have been made over the past few years&mdash;Savannah, Georgia; Port of Quebec, and Prince Rupert, British Columbia, to name a few. Additionally, several biomass power stations have invested substantially, including Drax in the U.K. and Ontario Power Generation in Atikoken, Canada.&nbsp; Despite the capital expenditure, it is unlikely that major power stations, at full fire, will store more than a few weeks of wood pellet fuel. The onus is on the producers&mdash;or the aggregators&mdash;to manage production fluctuations with storage. The impact is felt throughout the supply chain, in terms of the cargo size, the selected port, and inland logistics.&nbsp; Over the next several years, trading will become an important intermediary for balancing excess volumes and matching demand to destination. With an average capex cost of $500 to $700 per metric ton to build storage, financing the movement of volume becomes a cost-effective and creative alternative. A trader could move a handymax across the ocean three times for less than the annual cost per metric ton of storage. While virtual storage will not replace domes and other large-scale storage, small producers should look to aggregators with trading capabilities to manage their production fluctuation and reduce costs. Author: Michele Rebiere Chief Financial Officer, Viridis Energy <a href="mailto:mrebiere@viridisenergy.ca">mrebiere@viridisenergy.ca</a> 905-847-5226

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Viridis Energy Chief Financial Officer Michele Rebiere offers three predictions for the future of the global wood pellet industry.

The Future of Pellets

Corn stover and other biomass crop residues are frequently referred to as &ldquo;trash&rdquo; or agricultural waste, suggesting it has little value. These terms are deceiving, now more than ever, with this &ldquo;trash&rdquo; being collected for valuable uses both on and off the farm. This is perhaps most evident at three commercial-scale cellulosic ethanol facilities that have been built in the Corn Belt, where the bulk of corn stover resides. Capitalizing on this location, within the next year, the facilities expect to convert the surrounding stover into biofuel.&nbsp;
 Over 100 million tons of corn stover is available annually, making it the largest quantity of biomass residue in the U.S. The state with the most biomass is Iowa, where DuPont and Poet-DSM have constructed cellulosic ethanol facilities. It is estimated that 75 million dry tons of stover can be sustainably harvested each year. DuPont&rsquo;s facility in Nevada is expected to consume 375,000 tons of corn stover from approximately 190,000 acres each year, resulting in 30 MMgy of biofuel. Poet-DSM&rsquo;s Project Liberty site in Emmetsburg will source roughly 285,000 bone-dry tons (BDT) of corn residue biomass annually, producing 20 to 25 MMgy.
 Collecting the massive amounts of stover required to feed these facilities each year is no small task. How to approach this supply chain in a sustainable manner is perhaps even more daunting and, to further complicate the matter, mixed views surround this fairly new concept. Some corn growers view it as an opportunity to get more value from their agricultural land; others are slower to trial, and adopt with concerns about the impacts its removal could have on the condition of their soil. Some landlords and environmentalists share in the uncertainty. Stover has been harvested for purposes like animal feed and bedding for years, however, biofuel production at this scale is a fairly recent development. &ldquo;Partial stover harvest is a new and unique tool for managing corn residues,&rdquo; says John Pieper, stover feedstock workstream lead with DuPont.
 This new tool has yet to be understood by many, and seems to linger as the main cause of uncertainty. Both Poet-DSM and DuPont have been working with researchers at Iowa State University, the USDA, the National Soil Conservation Service, growers, equipment manufacturers and other stakeholders to create sustainable stover removal plans. These programs are focused on partial stover removal, to not only leave behind a sufficient amount to meet the critical needs of the soil, but also remove enough to purpose it for biofuel production.
 Food, Feed and Now Fuel
 Partnering with farmers has been paramount to the ethanol producers getting cellulosic plants on line. Stover must be harvested from a wide number of fields to feed the plant; in fact, 400 or more farmers are currently supplying stover to each facility. &ldquo;The growers themselves need to be comfortable, not only if it is something that makes sense to them economically, but also sustainably for their field and their crops,&rdquo; says Steve Hartig, general manager of licensing with Poet-DSM Advanced Biofuels.
 Poet-DSM has two types of biomass contracts for growers to market their biomass. The Grower Model says the grower is responsible for aligning the baling, staging, storage and transportation of biomass from the field to the biorefinery. They can choose to perform these tasks themselves, custom hire the job, or a mix of both. According to the Custom Model Contract, the grower harvests the grain forming the windrow, then informs the Poet-DSM biomass team, who take over from there. &ldquo;The key is to show them this is part of having a sustainable and profitable business,&rdquo; Hartig says.&nbsp;
 Corn farmer Mike Greenfield, is participating in DuPont&rsquo;s corn stover collection program. &ldquo;Really, for us, they have become a very integral part of how we manage our operation, it is a true partnership, and we&rsquo;ve signed a longer-term contract with them for most of our acres,&rdquo; Greenfield says.
 The reason for the commitment is that, for Greenfield&rsquo;s farming operation, it is a perfect match. &ldquo;We&rsquo;re corn-on-corn, and have been for several years,&rdquo; he says. &ldquo;Almost all of our ground has hog manure on it, so that makes our operation a natural fit.&rdquo;
 Like Greenfield, farmers with manure resources can add it as a fertilizer to their cornfields to improve organic matter levels after stover removal. Cover crops also help maintain organic matter levels in the soil.
 When the Time is Right
 Manure and cover crop use are elements that should be considered when deciding how much stover to remove sustainably. Other factors include slope, tillage, rotation and crop yield. &ldquo;Growers need to take a look at it on a field-by-field basis, and get the help they need to work through that information,&rdquo; says Marty Adkins, assistant state conservationist for special projects with the NRCS.
 Studies conducted at Iowa State University say level fields are best for harvesting stover, recommending not to harvest stover in field areas where slope exceeds 2 to 3 percent. The studies also show that a corn or soybean rotation contributes less soil organic matter than continuous corn. Some believe a crop rotation is needed to maximize corn yields, Pieper says, and in effect, this way of thinking results in a slow movement to adopt a new tool like partial stover harvest. Yield level is also important because high-yielding fields consequently yield the most biomass.&nbsp;
 As grain yields increase, residues become difficult to manage into a successful subsequent corn crop, according to Pieper. High-yielding fields are a good candidate for stover removal. &ldquo;A focus on leaving a sustainable, general 2.2 tons per acre, for conventional tillage volume, allows for an economical harvest rate&mdash;2 tons&mdash;on highly productive fields yielding greater than 180 bushels per acre of corn on average,&rdquo; Pieper says.
&nbsp;
 Baling the Biomass
 Everything from the way each field is assessed to how much stover is collected is essential to the sustainability of the field&rsquo;s soil health. Baling practices must also be attuned to soil health. After the windrow is created, most biomass should be baled 24 to 48 hours after harvesting if weather permits. DuPont&rsquo;s biomass team works with farmers to bale only large square bales (3 foot x 4 foot x 8 foot) of corn stover at this time. Pieper explains that productive fields with a low slope producing a little over 4 tons of stover per acre can support partial stover harvest three out of four years on continuous corn fields, and two out of five corn years on corn-soybean-rotated fields, targeting two tons per acre.&nbsp;&nbsp;
 Poet-DSM is removing about one BDT per acre, which translates to about 20 percent of available biomass. The primary feedstock to Project Liberty is created from the stover into a specific bale line called the EZ Bale, which can be either round or square. &ldquo;What we look at with the EZ Bale is the combination, so it has some of the cob and some of the stalk and a lot of the leaves,&rdquo; Hartig said. &ldquo;The composition is the ideal fuel we want to run, and the way it is gathered you tend to get a lot less rocks and dirt and organics.&rdquo;
 Innovation in feedstock composition is accompanied by equipment improvements and adaptations for efficient and safe stover harvests. &ldquo;It&rsquo;s forefront on everything we would develop, it has to be good for the farmer and the soil and be sustainable or it won&rsquo;t work,&rdquo; says Glenn Farris, marketing manager for biomass with Agco Corporation.
 Agco and other equipment manufacturers in the space are focused on limiting the amount of passes through the field. Agco supplies some tractors and a portion of the balers for all three cellulosic projects. Currently it has a single-pass system and is developing a high-take corn header for release in 2016. One piece of equipment isn&rsquo;t going to be the answer for all stover harvesting needs, Farris says. &ldquo;There is never going to be one single solution, depending on conditions, land type, weather and everything else,&rdquo; he adds. &ldquo;There needs to be a full array of solutions to pick and choose from.&rdquo;
 Agco has made improvements as a result of the call to remove stover for biorefineries. The large square baler, Massey Ferguson or Challenger 2270XD, has received a 90 percent heavier flywheel and shear bolts and larger hydraulic tension cylinders and a new Opti-Form extended bale chamber for denser, square-shouldered bales among other improvements according to Ken Wagenbach, business development and equipment specialist for biomass with Agco.
 Sustaining Relationships and Harvests
 Once baled, the stover is usually stored in stacks on the edge of the grower&rsquo;s field until transported to the biorefinery. Some stover is also stored at stackyards on site. Round bales, according to Poet-DSM, typically store better than square bales that are not tarped. Single row and pyramid are stacking options for round bales, with single rows holding the advantage when it comes to dry matter loss and maintaining the bale&rsquo;s shape. It is recommended that square bales are tarped if stored long term over the summer months to avoid excessive weathering. Deliveries of biomass are based on the contract period. &ldquo;What we are trying to do is make it as easy as possible for the growers to bring biomass to us,&rdquo; Hartig says.
 As easy as possible is the goal for now, while feedstock supply chains continue to be optimized, but a great deal of work lies ahead. &ldquo;Challenges include managing soil inclusion, moisture and remaining cover while optimizing cost, optimally capitalizing on a new supply chain,&rdquo; Pieper says.
 This new supply chain must create a year&rsquo;s supply of biomass in an approximately 70-day window, he continues, during which there are 28 days or more (97 percent of years) when harvest is possible. &ldquo;All this must be done without hindering our cooperating farmers in the successful management of other fall field work that must be undertaken,&rdquo; Pieper says.&nbsp;
 Ethanol producers recognize the importance of working with various stakeholders to sustainably acquire feedstock for their facilities. Population projections support the assertion that in the next 50 years, humans must produce as much food as has been produced throughout history. Additional food production means more of the &ldquo;trash&rdquo; left in the fields will need to be Managed. Maintaining soil is imperative in the continuation and boosting of mass crop production. Adkins agrees, &ldquo;Working with the farmers to maintain the soil health has never been more important.&rdquo; Author: Katie Fletcher Staff Writer, Biomass Magazine 701-738-4920 <a href="mailto:kfletcher@bbiinternational.com">kfletcher@bbiinternational.com</a>

SINGLE-PASS SYSTEM: AGCOâ€™s Massey Ferguson 2270XD baler collects stover during Iowa 2013 harvest.

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NEW CORN THROUIGH COVER: Soil Health Management System practices including conservation tillage practices with the use of cover crops can significantly reduce input costs, drought-protect crops and conserve soil and water resources. 

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SUSTAINABLE STACKYARD: The biomass stackyard is a 22-acre area used to store as much as 30,000 tons of material for Poet-DSMâ€™s plant, enough for about four weeks of operation.

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NET WRAP REMOVAL: Bales of corn cobs, leaves, husk and some stalk are loaded onto a conveyor where the net wrap is removed. The material is then sent to a grinder.

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Although corn stover offers a second valuable crop from the same acres, there's a whole lot more to the equation than simply removing it from the soil. 

Sourcing Stover Sustainably

I was fortunate enough to close out this past summer with a Labor Day weekend vacation, where I found myself in front of a campfire making s&rsquo;mores. A time-honored summer tradition, and a simple pleasure indeed.
 As my mind wandered, it landed on the fact that I was burning biomass to roast my marshmallow. I also reflected that this three-day weekend was dedicated to the millions of men and women who built this great nation. Our dams. Our roads. Our skycrapers, submarines and jumbo jets.
 It made me focus on the fact that today, our world is at an inflection point. Record droughts in California create bathtub rings around our country&rsquo;s most iconic lakes and reservoirs. Toxic algae blooms leave vast swathes of lakes unswimmable at best, and uninhabitable for many species at worst.
 These issues are the result of phenomena both man-made and natural, yet both are accentuated by the simple fact that we are struggling to meet the demands of a growing population. We are at the front end of a massive demand curve for just about everything that matters&mdash;energy, food, water&mdash;resources that must be managed carefully to ensure a sustainable future.
 It may seem hopeless at times, but I believe the answer to these challenges is right in front of us. It&rsquo;s technology, not ideology, philosophy or orthodoxy. Technology is giving us seeds that are more productive than ever before in human history. Technology is giving us new ways to use waste biomass. Technology is giving us new fertilizers that aren't derived from petroleum. And, technology is helping us reinvent how we farm, upending the notion that &ldquo;harvest&rdquo; is a season of the year.
 The U.S. algae industry is at the forefront of addressing these seemingly intractable problems of concerns over water and land. More than 100 companies are working day and night to leverage the incredible attributes of algae to drive supply in the food, feed and fuel industries. While it&rsquo;s true that the early days of the algae industry were focused on algae-to-fuel pathways, today&rsquo;s industry is incredibly diversified. There are companies designing algal oils for use in the food products industry, companies marketing nutriceuticals, drugs, cosmetics and health supplements derived from algae, and some of the most popular consumer health juices, including those from Odwalla and Naked, contain algae (spirulina). In addition, both algae producers and end-customers in the animal nutrition industries are looking to algae-derived proteins for their products.
 Let&rsquo;s not forget Omega-3 fatty acids, either. Increasingly, companies are turning to algae rather than animal or fish sources for Omega-3s, given cost, volatility and concerns about sustainability. I made the case in a recent article in a trade magazine for Omega-3 suppliers of all types, that algae will one day be the dominant supplier of Omega-3s.
 All the while, demonstration and commercial facilities for the production of algae-based biofuels are underway.
 Why algae, why now? It&rsquo;s simple. What we&rsquo;ve known, and what has been proven, about algae during the past two decades, is simply now more important than ever. The world needs a new crop that grows prolifically on small amounts of land, doesn&rsquo;t compete with traditional agriculture, and can recycle rather than release nutrients. It must also require fresh water or months of growth before harvest, and be able to produce a variety of products for a variety of industries.
 Like other biomass options, a robust algae industry will result in increased jobs and economic development here in the U.S., jobs that can&rsquo;t be outsourced and, in many cases, will be created in rural areas hit hard by the recession.
 We live in a time when raw materials that used to be free or plentiful are no longer available. Scarcity and volatility in commodity markets have driven up the price for many staples, including animal feed, fertilizer and water. Yet, at the same time, the demand for these commodities on a global scale continues upward, unabated. So, the case for biomass is really no longer a question of being &ldquo;green&rdquo; or being &ldquo;sustainable,&rdquo; rather it is a necessity to be able to meet the demands of a growing population. It's about building a great future. Author: Matt Carr Executive Director, Algae Biomass Organization <a href="http://www.algaebiomass.org">www.algaebiomass.org</a> 877-531-5512

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The case for biomass is really no longer a question of being â€œgreenâ€� or being â€œsustainable,â€� rather it is a necessity to be able to meet the demands of a growing population. It's about building a great future.

Reflecting on the Future

SG Preston plans to build a 120 MMgy renewable diesel facility in in Lawrence County, Ohio. Technology employed at the plant will be licensed from Honeywell UOP. The Lawrence County Economic Development Council is investing 62 acres in land and other incentives in the project. The Appalachian Partnership for Economic Growth and Jobs-Ohio were also instrumental in securing the investment and technology.
 The $400 million project is expected to be complete in 2017. Pre-engineering studies were slated to begin in September.
 &ldquo;For SG Preston, this is an important milestone and part of a larger vision of partnering with leading, global refining technology partners and local communities to develop a portfolio of renewable diesel and renewable jet fuel refineries targeting 1.2 billion gallons per year, or 20 percent of the federal [renewable fuel standard] biomass-based mandate for biofuels,&rdquo; said R. Delbert LeTang, CEO of SG Preston.

SG Preston announces renewable diesel project 

Virent Inc. has received fuel registration from the U.S. EPA for its BioForm gasoline in blends of up to 45 percent. As a registered fuel, Virent&rsquo;s biogasoline can now be used in on-highway motor vehicles.
 &ldquo;Securing EPA registration of our BioForm gasoline is further confirmation of Virent&rsquo;s high quality drop-in fuel and is another step towards commercializing our technology to produce renewable fuels and chemicals from biobased feedstocks,&rdquo; said Lee Edwards, CEO and president of Virent.
 The BioForm gasoline was produced by Virent at its 10,000-gallon-per-year demonstration plant in Madison, Wisconsin. The biofuel was blended with conventional gasoline and underwent testing at the Southwest Research Institute. Results showed that emissions from the blended fuel were well below the maximum permitted by current regulations. EPA testing work was funded by Virent partner Royal Dutch Shell.

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Virent earns EPA registration for renewable gasoline 

Biomass industry insiders agree that there are many good reasons to make the switch from gasoline and diesel fuel to renewable, compressed natural gas (CNG) or liquefied natural gas (LNG), but key to the continued expansion of the sector is the continued push for awareness outside of the industry.
 CNG, which works best for short trips, is derived from organic waste and costs less than petroleum fuels, burns cleaner and produces less greenhouse gas. Meanwhile, LNG, which works with long-haul, on-highway Class 8 trucks, offers an energy density comparable to petrol and diesel fuels, extending range and reducing refueling frequency.
 There are many programs set up to take advantage of incorporating biogas into transportation operations&mdash;big household names such as P&amp;G and Owens Corning are incorporating natural gas into their transportation logistics&mdash;and an increasing number of companies specializing in assisting fuel switch. Mark Stoermann, director of operations for ampCNG, a Chicago-based energy company focused on displacing liquid fuels with CNG, says CNG is seeing increased acceptance as a lower-cost, domestically produced alternative to diesel fuel. &ldquo;Since the introduction of the Cummins 11.9L 400HP engine, there has been a significant increase in both interest and purchases of CNG-powered vehicles for dedicated fleets,&rdquo; he says. &ldquo;The production of renewable natural gas from biogas is a proven way to reduce waste and produce a replacement for fossil fuels.&rdquo;
 AmpCNG converts large trucking fleets&mdash;for brands like Frito-Lay and Subaru&mdash; from diesel to CNG and, to support these operations, is also building a network of fueling stations for long-haul truck fleets throughout the country. &ldquo;One of the biggest challenges in the growth of CNG as a low-cost, domestically produced transportation fuel is that there is currently limited fueling infrastructure,&rdquo; he says. &ldquo;AmpCNG partners with fleets to build ultrafast fill CNG stations that are located along their key routes and open to the public for fueling.&rdquo;
 William Zobel, vice president of market development and strategy at Chicago-based Trillium CNG, which provides CNG fueling solutions and equipment, including the proprietary Pinnacle line of hydraulic intensifier compressors, says there are a lot more natural gas vehicles available for purchase now than there were a year ago, with Ford, GM and Chrysler all expanding their lineups of natural gas-ready trucks. &ldquo;The way that projects are being financed is also changing,&rdquo; he says. &ldquo;It used to be that municipal agencies would look to the federal government for funding, but now the government is strapped for cash, so they are turning to vendors and using public-private partnerships to finance natural gas transportation projects. The whole industry is moving very quickly in all aspects, not only with commercial trucks, but also with the mass transit and refuse sectors.&rdquo;
 Charlie Stevenson, fleet operations manager at water utility group Aqua America, says the company&rsquo;s decision to invest in compressed natural gas to fuel its fleet was not a hard one. Aqua serves nearly 3 million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. In 2012, the company invested $130,000 in a time-fill station at its Springfield, Pennsylvania, operations center, and it&rsquo;s grown since. Plans are also in the works to install time-fill stations at the company&rsquo;s Willow Grove, Montgomery County, and West Chester, Chester County, operations centers. &ldquo;We&rsquo;re a green company and always look at all types of alternatives,&rdquo; he says. &ldquo;In fact, we bought our first CNG vehicle back in 1997. This time, we were looking at the stability of fuel pricing, and CNG has been pretty flatlined at around $2 per gas-gallon equivalent and it made sense.&rdquo;
 To date, the company has invested $675,000 in CNG through vehicle purchases and infrastructure upgrades, and it expects to have 90 CNG vehicles in operation within the next five years.
 Patrick Serfass, executive director of the American Biogas Council, says there are lots of places where there should be focus on renewable and natural gas and the role biogas can play as a transportation fuel is an important one. &ldquo;The main benefits come from the biogas systems themselves,&rdquo; he says. &ldquo;They not only produce renewable energy, but they recycle our organic waste, and in doing so, they help our soil, air and water. A lot of people scratch their heads and don&rsquo;t understand how you can make motor vehicle fuel out of waste, and we need to build awareness.&rdquo;
 According to Serfass, natural gas fuel costs up to $1.50 less per gallon than gasoline or diesel, and the use of natural gas fuel not only reduces operating costs for vehicles, but also reduces greenhouse gas emissions up to 30 percent in light-duty vehicles and 23 percent in medium- to heavy-duty vehicles.
 The state of Ohio is flexing its competitive muscle by considering legislation (HB 336 proposed by Reps. Michael O&rsquo;Brien and David Hall) that would offer tax credits to residents and grants to public fleets for the purchase or conversion of alternative fuel vehicles. &ldquo;Widespread use of CNG as fuel has the potential to significantly decrease the cost of transporting goods across the state, giving Ohio, a state rich in natural gas reserves, a big competitive advantage,&rdquo; says Caroline Henry, vice president of marketing for quasar energy group in Cleveland, Ohio, which has three CNG stations open to the public in Columbus, Zanesville and Wooster.
 Sam Spofforth, executive director of Clean Fuels Ohio, says there&rsquo;s been an incredible amount of growth in Ohio for CNG, with a small increase in LNG facilities.
 &ldquo;Looking at it from the perspective of a station developer and a fleet, biogas is pretty cost-competitive with conventional natural gas in transportation applications,&rdquo; he says. &ldquo;It&rsquo;s also very stable in price. You know what your costs are going to be, the cost recovery you will need and there&rsquo;s consistency in feedstock values. And obviously, there are enormous environmental benefits with a tremendous net reduction in greenhouse gasses and the avoided methane emissions.&rdquo;
 Clean Energy, which focuses on both CNG and LNG, is planning to open several stations in the state in 2015.
 Challenges Abound
 When it comes to the expanded use of introducing biogas to transportation fuel, the biggest challenge is the availability of CNG fueling stations. According to the U.S. DOE, there are only 743 CNG fueling stations in the U.S., and just 58 LNG stations.
 Henry says that the legislation being proposed in Ohio would encourage fueling station owners in Ohio to add CNG pumps to their locations in order to respond to the increased demand for alternative fuels.&nbsp;&nbsp;&nbsp;
 Other challenges are the cost of anaerobic digestion, the biogas upgrading system and the ongoing operation of these processes.
 Zobel believes financing biogas projects has been the biggest challenge, and it would help if there were government policies in place that could help further educate the public on the benefits that biogas brings, and financing backstops to ensure government incentives used to justify the investment will not evaporate with a change in administration. &ldquo;Developers are looking for investors with a direct outlet for the gas to finance the project, but often these people don&rsquo;t know enough about the project to make an informed investment decision,&rdquo; Zobel says. &ldquo;Some banks struggle too&mdash;it works on paper and there are case studies to prove it works, but most people just aren&rsquo;t well-informed enough about it and the biogas manufacturing process is sensitive.&rdquo;
 Kevin Matthews, president of Genox Transportation, La Porte, Texas, which transports LNG with its fleet of 30 trailers, says the trucks being built today running off LNG are certainly better than those built just three or four years ago, but with so few stations available, it&rsquo;s sometimes hard to keep things running. &ldquo;With fuel being your second highest cost, and having the potential to save up to 40 percent, why wouldn&rsquo;t you do it?&rdquo; he says. &ldquo;Many of the states are offering grants that allow you to buy trucks for roughly the same as you can buy a diesel truck.&rdquo;
 Stevenson says the fact that CNG can&rsquo;t be used for long trips is also a challenge that keeps people away. &ldquo;With our CNG vehicles, we can only get about 210 miles before they're out of fuel, so you really need to plan your trips accordingly,&rdquo; he says. &ldquo;When they go out, they come back from the same destination each day. Because of this, we can buy a slow-filling station, upwards of $150,000, as opposed to a fast-filling station, upward of $1.5 million, which keeps a lot of people out of the business.&rdquo;
 RIN Generation
 Biogas is now eligible for RIN generation under the renewable fuel standard, an initiative that clearly helps offset the cost of biogas projects and brings more low-carbon fuel to the marketplace. Zobel says there is a certain number of cost elements that go into each project, and the RIN generation under the renewable fuel standard helps with the revenue side of things.
 Stoermann adds transportation fuel, like CNG that is produced from biogas, has been approved for several years. &ldquo;Renewable Dairy Fuels, a subsidiary of ampCNG has been issuing RINs since September of 2012,&rdquo; he says. &ldquo;The recent action of the EPA broadened the definition of the wastes that were eligible, and created a two-tier system of RINs that should increase the opportunity to recover the costs of producing a renewable transportation fuel.&rdquo;
 Quasar&rsquo;s Zanesville and Columbus fueling stations are already approved under the RFS to generate RINs.&nbsp; According to Henry, the new rules will qualify anaerobic digesters processing biosolids and manure under a new category&mdash;cellulosic (or D3)&mdash;where previously these feedstocks were categorized under D5.
 The RFS program changes are a big help to expanding the industry, Storemann adds. &ldquo;Thousands of tons of waste are disposed of into landfills every year, and technology exists to convert this waste into energy. The key to making this happen is to offer a return to the companies that invest in this technology, and the expansion of the RIN program by the EPA is a step in the right direction.&rdquo; Author: Keith Loria Freelance writer, Biomass Magazine <a href="mailto:freelancekeith@gmail.com">freelancekeith@gmail.com</a>

WATER AND CNG MIX:  Aqua America, a water utility group that serves nearly 3 million people in eight states, made its first investment in CNG infrastructure in 1997 and has greatly expanded its use since then.

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CNG FOR ALL: Quasar energy group has three CNG stations open to the public in Columbus, Zanesville and Wooster, Ohio.

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Slowly but surely and not without hurdles, renewable, compressed natural gas and liquefied natural gas infrastructure is expanding in the U.S.

Compressed Potential

Biogas advocates and project developers have been abuzz since mid-July, when the U.S. EPA released a renewable fuel standard (RFS) final rule that allows eligible biogas transportation fuel pathways to generate cellulosic renewable information numbers (RINS). Prior to the rule, biogas transportation projects were eligible to generate advanced biofuel RINS. The cellulosic fuel pool within the RFS is much larger than the advanced biofuel pool. Statutory renewable fuel obligations by 2022 are 16 billion gallons of cellulosic biofuel and 4 billion gallons of advanced biofuel. The EPA is responsible for determining an annual renewable fuel volume obligation for the different fuel pools, and each year has significantly reduced the obligation from statutory requirements because fuel production expectations have fallen short.
 Allowing biogas transportation fuel pathways to generate RFS cellulosic credits represents an amazing opportunity for biogas project development. There is an incredible amount of organic waste feedstocks that could be processed in biogas energy systems. Biogas energy systems also present an opportunity to establish perennial feedstocks. I wrote about the topic in my January column, but would like look at what this could mean for the biogas industry by looking at a proposed project with a visionary model.
 Readers of Biomass Magazine might already be familiar with a project in northern Missouri developed and constructed by Roeslein Alternative Energy. It has an ambitious vison to produce 50 million diesel gallon equivalents by the end of the decade using biogas from hog manure and energy crops. In addition to producing a large volume of low-carbon transportation fuel from cleaned and compressed biogas, the project aims to restore 30 million acres of highly erodible land to native grasslands over the next 30 years. Grasses and other perennial species would be feedstock input for biogas energy systems.
 Achieving this vision will require a multiphase plan. Recently, I had the opportunity to speak with Rudi Roeslein, CEO of Roeslein Alternative Energy, about the planned approach. The first phase of the project is already underway. RAE and project partner Murphy-Brown of Missouri announced the commencement of the installation of impermeable covers on 88 existing hog manure lagoons. The next project phase will implement biogas cleaning and conditioning equipment to produce a source of renewable natural gas (RNG) and establish a network of distribution centers to provide RNG to vehicle fleets. The third phase will establish a demonstration project using aboveground anaerobic digestion systems to process hog manure and perennial feedstocks.
 Murphy Brown, in cooperation with the Missouri Prairie Foundation, the Missouri Department of Conservation, the U.S. Fish and Wildlife Service, and the Natural Resources Conservation Service, planted 400 acres of prairie plantings that could be used as part of the testing program. In addition, for the past five years, Roeslein Northern Missouri Real Estate has been replanting and restoring native grassland and prairie on its 1,650-acre farm located within the project area, and has adequate feedstock to test in the demonstration project. The University of Minnesota has been engaged by Roeslein Alternative Energy in the testing of various feedstocks to evaluate the potential methane yield and help evaluate ecological services such feedstock would provide. &nbsp;&nbsp;&nbsp;
 The Roeslein project vision and all of the potential economic and environmental benefits is exciting and inspiring. The project will significantly reduce greenhouse gas emissions by capturing methane from hog manure, sequester carbon in perennial grasslands, and displacing diesel fuel with RNG. The project will also result in improved water quality and establish habitat for wildlife. There are also economic benefits in the form of job creation, local economic activity for construction and operations, and increased farm income from energy crop purchases.&nbsp;
 The EPA&rsquo;s recent action expanding biogas transportation fuel pathways to generate cellulosic RINs represents an enormous opportunity for project scale-up all across the U.S. This will be the year that we see commercial-scale production of cellulosic ethanol using corn stover as a feedstock. These first-of-a-kind liquid renewable fuel projects need an enormous amount of feedstock to begin operation.Biogas energy projects could play a role in helping to establish energy crops for future projects. They do not require as much feedstock volume as liquid renewable fuel projects, but could immediately provide a market for producers willing to establish grassland and native perennials on a portion of their land. So many different opportunities are possible for the biogas industry; we just need to reach out and grab them. Author: Amanda Bilek Government Affairs Manager, Great Plains Institute 612-278-7118 <a href="mailto:abilek@gpisd.net">abilek@gpisd.net</a>

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Biogas advocates and project developers have been abuzz since mid-July, when the U.S. EPA released a renewable fuel standard (RFS) final rule that allows eligible biogas transportation fuel pathways to generate cellulosic RINs.

A Visionary Model for Biogas Projects

The USDA, in partnership with the U.S. EPA and U.S. Department of Energy, has published its Biogas Opportunities Roadmap, a document that builds on progress made to date to identify voluntary actions that can be taken to reduce methane emissions through the use of biogas systems. It outlines strategies to overcome barriers limiting further expansion and development of a robust biogas industry in the U.S.
 The Biogas Opportunities Roadmap is related to President Obama&rsquo;s Climate Action Plan, which was released in June 2013, and the Climate Action Plan Strategy to Reduce Methane Emissions, which was released by the White House in March.
 The roadmap estimates there are currently approximately 2,000 sites in the U.S. producing biogas. With proper support, more than 11,000 additional biogas systems could be deployed in the U.S. &ldquo;If fully realized, these biogas systems could produce enough energy to power more than 3 million American homes and reduce methane emissions equivalent to 4 to 54 million metric tons of greenhouse gas emissions in 2030,&rdquo; the report said.

Biogas Opportunities Roadmap released 

New York City is planning an expansion of its anaerobic digester pilot program launched last summer at the Newton Creek Wastewater Treatment Plant in Greenpoint.
 The purpose of the one-year pilot was to test the logistics of source separating food waste, collection of the waste, preprocessing by Waste Management and injection into the wastewater treatment plant digesters, said Anthony Fiore, director of New York City&rsquo;s Department of Environmental Protection Office of Energy.
 From April 2013 to May 2014, the facility processed between 1.5 and 2 tons of source separate organic waste (SSO) a day. This winter, the project will be scaled up over a three-year period beginning at 50 tons per day to 250 tons per day. &ldquo;This volume of SSO will allow us to better understand the ability to source separate waste from both residential and commercial sectors, the efficiency of processing the material into a consistent bioslurry and the costs and benefits of treating food waste in anaerobic digesters,&rdquo; Fiore said.

Building on Success: The New York City anaerobic digester pilot program has eight tanks. The facility is collocated with the Newton Creek Wastewater Treatment Plant in Greenpoint. 

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NYC expands food waste-to-energy pilot 

Fish, wildlife and the habitats they depend on not only enrich our lives, they support our economy.&nbsp; Every year, outdoor recreation contributes about $650 billion to the American economy and supports 6.1 million jobs&mdash;nearly one in 20 of all U.S. jobs. Hunting, fishing, and other wildlife-dependent recreation alone generates $145 billion per year. Bioenergy production from restoration and/or sustainable management of existing native plant communities offers some of the best opportunities to help meet U.S. energy goals while, at the same time, conserving fish and wildlife. With attention to advance planning and the assistance of state fish and wildlife agencies and other conservation partners, we can meet the nation&rsquo;s energy goals and sustain native fish and wildlife.&nbsp;
 Opportunities to collaborate include:
 Forests. Removal of small-diameter woody material from overstocked native forests can help restore forest health and ecologically site-appropriate diversity, as well as reduce wildfire risk.&nbsp; Selective thinning of plantation forests, particularly pine stands in the southeastern U.S., could also benefit wildlife such as the bobwhite quail.&nbsp;
 Grasslands. The restoration of native grasses such as big bluestem, indiangrass and switchgrass on prairie landscapes where land was previously converted to agricultural row crops, such as in the northern Great Plains, could provide producers with the flexibility to use the biomass for energy purposes or livestock forage, depending on market needs.&nbsp; Wildlife may benefit through the return of native plant communities that are among the most highly diminished of any in the world (more than a 99 percent loss).
 Invasive Species Removal. Invasive plants cost $120 billion per year to control and are a contributing factor in more than 400 threatened or endangered species listings in this country.&nbsp; Harvest of these plants for biomass, with eradication as the goal, could benefit fish, wildlife and their native habitats while also reducing associated economic impacts.
 Waste Materials. It makes sense to use readily available waste materials when possible before placing more land into bioenergy production.&nbsp; Yard waste, debris from natural disasters such as wind throw, and other municipal solid waste can provide substantial biomass instead of filling landfills.
 Rights of Way. Utility, highways, and other ROW require management, which could be coordinated with bioenergy production if planted with site-appropriate native biomass.
 The more a land use like energy crop production can mimic a native habitat, the more favorable the impact on fish and wildlife.&nbsp; The biggest factor contributing to fish and wildlife declines is habitat loss.&nbsp; State fish and wildlife agencies and other conservation partners can help reduce habitat risks associated with bioenergy production.&nbsp;
 Risks include:
 Land Conversion. Many energy crops are designed to grow on marginal lands not suitable for agricultural production, lands that are now supporting wildlife. A recent report prepared for the U.S.DOE suggested that 79 million acres of cropland and pasture may need to be redirected to energy crops to meet domestic liquid energy goals, an area the size of Missouri and Iowa combined.&nbsp;
Biomass for other energy purposes, such as international markets or heat production, would be additive to that. It seems unlikely that this can be accomplished without conversion of remaining native ecosystems, either directly or indirectly, which makes advanced thought and planning crucial.
 Aggressive Plants. Many energy crops are selected or genetically modified to grow rapidly, increase yields, be disease and pest resistant, and adapt to a wide variety of soils and climates.&nbsp; Unfortunately, these are also the characteristics of species that may become invasive.&nbsp; If native plants and cultivars are not used, prevention is the best tool to deter invasive species problems.&nbsp; Developing an effective containment plan with the engagement of state fish and wildlife agencies is the best way to reduce risks.
 Reduced Diversity. Energy crop production often maximizes yield with dense, single-species plantings. Unfortunately, wildlife populations decline when native habitat is replaced by plantings that contain fewer species.&nbsp; Adding structural diversity (e.g., different mowing heights and times) and species diversity (e.g., legumes to replace soil nitrogen) can reduce negative impacts.
 Harvest Timing. Wildlife need diverse plants for food during the spring and summer, either to consume directly or provide a substrate for insects that, in turn, serve as food.&nbsp; In the late fall or winter, vegetative cover becomes more important to avoid predators and harsh weather.&nbsp; Management that avoids harvest in spring and early summer, leaves field borders and minimizes the use of pesticides and herbicides can benefit wildlife and reduce producer costs.
 Can bioenergy development and sound fish and wildlife management coexist?&nbsp; The answer is, &ldquo;It depends.&rdquo; It is important for society to consider our natural resources in the economic equation if bioenergy is to be truly sustainable over the long term.&nbsp; The following are some general guidelines for bioenergy development that can be adapted locally to help achieve mutually compatible goals:
 Crop Establishment
 &bull; Avoid conversion of already diminished native habitats to establish energy crops.
 &bull; Use ecologically site-appropriate native species that match the native ecosystem.
 &bull; Develop containment plans with the involvement of state fish and wildlife agencies if aggressive nonnative species are under consideration.
 &bull; Mixed species plantings, especially those with native wildflowers and legumes, provide better habitat than monocultures.
 &bull; Break up single-species plantings into blocks of diversified crops to minimize risk to wildlife.
 Water Quality/Quantity
 &bull; Plant buffers of native plant species between feedstock plantings, neighboring habitats, and waterways.&nbsp; Wider is better, especially around water sources.
 &bull; Minimize use of water and select energy crops that use water efficiently.
 &bull; Minimize use of fertilizers, pesticides and herbicides and avoid using them near streams or other water bodies.
 &bull; Wetlands, rivers, streams, or other natural aquatic habitats should not be used for energy crops, particularly for algae production, which should be produced only in closed systems with primary and secondary containment plans in place.
 &bull; Harvest invasive species, including aquatics, but keep the focus on reduction or elimination.
 Energy Crop Harvest
 &bull; Harvest crops in late summer or fall to avoid primary nesting and calving seasons.
 &bull; Leave residual stubble (more than 10 inches recommended) or harvest early enough to allow for some fall regrowth for wildlife cover.
 &bull; Consider leaving a portion of the field unharvested each year; harvest in blocks instead of strips.
 &bull; Consider leaving corridors for wildlife to travel between habitats; make as wide as possible.
 &bull; Develop and enforce a sanitation and containment plan to ensure transportation of energy crops and moving of harvesting equipment does not spread potentially invasive species. General Recommendations
 &bull; Contact your local wildlife resource agencies to customize these best management guidelines to meet the needs of the bioenergy project and fish and wildlife species in need of attention in your area.
&nbsp;
*Editor's note: This article originally stated that wildlife may benefit through the return of native plant communities that are among the most highly diminished of any in the world (less than a 99 percent loss). It has been corrected to say more than a 99 percent loss.
*The article also recommended leaving residual stubble (less&nbsp;than 10 inches) or harvest early enough to allow for some fall regrowth for wildlife cover. It has been corrected to read more than 10 inches recommended.
 Author: Association of Fish &amp; Wildlife Agencies <a href="http://www.fishwildlife.org">www.fishwildlife.org</a> 202-624-7890 <a href="mailto:info@fishwildlife.org">info@fishwildlife.org</a>

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Fish and Wildlife Agencies can play a role in successful biomass production for bioenergy.


Achieving Sustainability Goals

In my time as a project manager, I&rsquo;ve had the opportunity to work on a number of projects involving the combustion of wood biomass. These projects have included applications such as district heating for university campuses and process steam for manufacturing. I&rsquo;ve seen some organizations make highly effective use of the technology, while others floundered.
 What sets these two groups apart? While every project has its own distinctive challenges, nuances, and advantages, the organizations that are most successful in their decision-making are the ones that have most carefully considered the following three questions: &bull; How readily can you source wood biomass?
 If you have to source woody biomass from across a great distance, expending a great deal of transportation fuel in the process, then the prospect of burning biomass suddenly grows less green, less efficient, and less cost-effective.
 As with any fuel source, decisions about biomass should be made with a high degree of geographical and contextual awareness. Facilities that are located in regions with a heavy concentration on forest products are particularly well-positioned to take advantage of wood biomass as a fuel for district heating, process steam, etc. As the distance between the facility and the fuel source increases, the rationale for wood biomass becomes less compelling.
 Of course, for smaller-scale wood biomass burning solutions, other sources of wood fuel might be available, leading to the next question: &nbsp; &bull; Does your organization already produce suitable wood byproduct?
 Although they may not be located near traditional sources of wood biomass fuel, many businesses, such as those working with plywood, furniture, or wood mulch, may be ideally situated to burn wood biomass in a highly efficient way, making use of waste products that are generated by their operations. Businesses of these types would do well to consider how a wood biomass boiler might be integrated into their processes.
 Regardless of how much promise biomass seems to have for a given business, however, it must have a good answer to the third question: &bull; Have the business&rsquo;s decision makers made an informed, organizational commitment to biomass? Sometimes, lone voices can dominate discussions about energy strategy. But in order to serve an organization most effectively, a biomass solution requires sustained, organization-wide commitment.&nbsp; Once a singular, driving voice is no longer present, a promising effort may fall apart.
 Before making the decision for woody biomass, an organization&rsquo;s decision makers must all be on the same page and be prepared to commit to sourcing and upkeep for the long haul. This may require in-depth consultation as well as education for the organization&rsquo;s decision makers.
 Biomass brings powerful opportunities for sustainability and efficiency for well-situated businesses and institutions that are willing to make a long-term commitment. Through careful analysis and implementation, an organization that has the resources and the will can leverage those opportunities very effectively for the long term.
 Author: John Ward Project Manager, Fosdick &amp; Hilmer Inc. <a href="mailto:feedback@fheng.com">feedback@fheng.com</a> <a href="http://www.fosdickandhilmer.com">www.fosdickandhilmer.com</a>

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Biomass brings powerful opportunities for sustainability and efficiency for well-situated businesses and institutions that are willing to make a long-term commitment.

Making the Most of Woody Biomass

Residential wood heating incentives are on a roll, and the industry is beginning to see trends, said John Ackerly, president of the Alliance for Green Heat, during a recent Biomass Thermal Energy Council webinar.
 Residential wood heat has risen dramatically in recent years, Ackerly said, especially in the Northeast and Great Lakes states. &ldquo;In some cases, by 100 percent&hellip; Incentive programs are guiding consumer purchasing and steering people to cleaner and more efficient appliances.&rdquo;
 And it&rsquo;s finally being recognized that wood heat is a real opportunity for incentives that help reduce fossil fuel use. &ldquo;Historically, all of that money and attention has gone into solar and geothermal, and now wood is starting to be included,&rdquo; Ackerly continued.
 Also speaking during the webinar was Adam Sherman, executive director of the Biomass Energy Resource Center, who discussed commercial wood appliance incentives, legislative and financial policies, and Ryan Moore of the New York State Energy Research&nbsp; and Development Authority, who detailed the state&rsquo;s new renewable heat initiative incentives.

BTEC highlights trends in wood heat incentives 

The U.K. Renewable Energy Association and Wood Heat Association are reporting a milestone has been reached under the country&rsquo;s nondomestic Renewable Heating Incentive. According to the associations, as of Aug. 15, 1 gigawatt of renewable heat is being generated in the commercial, industrial and public sectors, with 4,926 accredited wood heating installations at locations including farms, factories, care homes, hotels and churches.
 The RHI has had a significant impact on investments in renewable heat&mdash;particularly bioenergy&mdash;and those investments are forecast to significantly increase over the next several years. U.K. Department of Energy and Climate Change statistics indicate that between 2010 and 2012, &pound;760 million ($1.26 billion) was invested in heat from bioenergy, or 56 percent of the total investment in renewable heat over the period. That share is expected to increase to 85 percent from 2013 to 2020.

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UK nondomestic RHI reaches new milestone 

Nearly 60 percent&ndash;&ndash;more than 430 million acres&ndash;&ndash;of the forested land in the United States is privately owned and managed. Collectively, the lumber and fiber they produce serves a forest products industry worth nearly $200 billion a year, employing nearly 1 million people. These markets are vital to the economies of the regions with forest resources and have created a demand that has kept forest inventories stable for over a hundred years. Recently, the demand for wood pellets for electricity generation in European countries working to drive carbon out of their energy portfolios has created a new market for wood fiber from this resource. Along with this new demand, however, comes rekindled scrutiny about modern forest management practices led largely by nongovernmental organizations (NGOs) who are challenging the sustainability of making power from woody biomass.
 As the market continues to gain momentum, so too has the scrutiny, and forest landowners and the associations that represent their interests have ramped up their advocacy and outreach, working with foreign policymakers to educate them on well-established forestry practices. Scott Jones, executive director of the Forest Landowners Association, and its members are optimistic about this new market.&ldquo;The general feel from our members is excitement. They are excited about the market it provides them to continue to manage their forestlands,&rdquo; he says. Forest Landowners Association membership is largely private, multigenerational families managing a particular tract of land for secondary income, generation after generation. If the pellet industry is to gain a permanent foothold within the sector, its membership&rsquo;s participation is vital.
 &ldquo;The landowners who own the resource are really the lynch pin in this discussion because without them, none of this would happen,&rdquo; say Risher Willard, chief of marketing and utilization at the Georgia Forestry Commission. &ldquo;Without good markets for timber products, people might be inclined to convert that land to other uses. Providing strong growing markets will encourage people to maintain their land as forests.&rdquo;
 This is the message that Jones, Willard and many others across the forest products industry are working to deliver to policy makers, NGOs and the general public. While the pellet market is new and emerging, the system that will supply is well-established and by all measures, in balance. Secondary Market Roles
 Forests generate revenue by serving a small handful of markets.&nbsp; Working, productive forests are all aiming to satisfy the highest value markets first, and every management decision made by a landowner can be attributed to these high-value opportunities. These high-value markets are the sawmills that convert mature pine trees into dimensional lumber. &ldquo;We&rsquo;re growing for the housing market. That&rsquo;s what drives prices. That&rsquo;s what drives financial success on these forestlands is growing that higher value product, that sawtimber, something that is going to make 2 by 4s, something that is going to make 4 by 4 posts,&rdquo; says Jones. Understanding the journey that an acre of trees takes as it is managed to satisfy these markets is vital to understanding how fiber comes to be available to pellet producers and other, less valuable, but no less important, secondary markets.
 Actively managed forestlands engage in a cycle that includes planting, commercial thinning and final harvest. This cycle unfolds over nearly 30 years before the final harvest occurs, when, if a landowner feels it makes financial sense, it all begins again.
 Mike Jostrom, director of renewable resources for the large timber real estate investment company Plum Creek, explains the role commercial thinning plays in forest management. &ldquo;A commercial thinning essentially does what nature does on its own, but it captures the wood fiber for a market,&rdquo; he says. &ldquo;With a commercial thinning, the remaining trees are healthier and grow faster. Not only are the individual trees healthier, but the whole stand of trees is more resistant to disease and insects as well as being more resistant to fire. Commercial thinning is a fundamental tool that significantly contributes to sustainable trees management.&rdquo;
 Forest landowners, keen to maximize their forests productivity, know that commercial thinning is vital to the health of their stand. Still, thinning a stand of growing forests is a labor-intensive proposition. &ldquo;When you cut down lots of small trees, it is a very expensive process,&rdquo; Jostrom says. &ldquo;And so if you don&rsquo;t have a market to pay you for doing that, it really makes it difficult to do it.&rdquo;
 Landowners have traditionally relied upon the pulp and paper markets to support these practices. While the pulp and paper market is broadly stable, there are areas where demand is declining. &ldquo;Where those markets are declining or have disappeared, we are now starting to see markets for wood pellets develop,&rdquo; says Jostrom.
 Considering the Competition
 Those opposed to the use of wood fiber for the production of pellets and electric power or heat assert that this demand will place extreme pressures on forest resources and will ultimately result in deforestation. Professionals steeped in forest management and forest economics know otherwise.
 Willard, who closely tracks a growing list of proposed pellet facilities at his office, points to the folly of siting a pellet mill in an area with existing strong demand for wood fiber. &ldquo;These problems don&rsquo;t exist because they (pellet producers) can&rsquo;t afford to hurt themselves by building in an area with a lot of competition. The risk to themselves would be too great,&rdquo; he says. &ldquo;Mill siting is probably one of the biggest considerations for these new pellet plants.
 Willard points to an altogether different market dynamic that may negatively impact the size of the commercial forest resource. &ldquo;There are some statistics out there in the southeast, in Georgia too, in some other states where the inventory of small-diameter trees isn&rsquo;t as great as it has been in the past. That can be attributed to the downturn in the housing markets in the mid-2000s. Not as many final harvests have taken place, which is resulting in not as many acres being reforested,&rdquo; he notes.
 Certification Conundrum
 This system of replanting, commercial thinning and final harvest has been governed by state and federal best management practices since the 1980s. Still, recognizing that some consumers wanted more assurance that forests were being sustainably managed, forest owners began to explore and deploy more robust certification programs across the industry. These programs utilize guidelines and third-party audits to guarantee that forests are managed in a sustainable manner.&nbsp;&nbsp; Moreover, these certification programs are serving as the foundation for the supply chain certification programs foreign policy makers are deploying for inbound wood pellets.
 &ldquo;We (Plum Creek) were the first company to become certified on all of our lands, third-party certified, across the country,&rdquo; says Jostrom. Certification, however, introduces new costs for landowners, and smaller landowners are reticent to take on these costs without recovering them from marketplace premiums. &ldquo;If you are providing a product that meets a higher standard, then you should be rewarded for providing that product,&rdquo; says Jones. &ldquo;That conclusion has not been realized in the forest certification marketplace. Yet, in all marketplaces with wood products, whether its saw wood, pulp wood, paper products, or pellets, premiums are not being paid for those certified products when compared to uncertified products. That is what creates some of the reluctance you are seeing from landowners to get certified.&rdquo;
 Recognizing that exclusively utilizing certification schemes will dramatically limit its access to wood fiber in the U.S., the United Kingdom&rsquo;s Department of Energy and Climate Change has introduced a new pathway within its Timber Procurement Policy for fuel suppliers to prove the &ldquo;legality and sustainability&rdquo; of their fuel. This pathway is commonly referred to as Category B. This pathway, while eliminating the requirement for full-on fiber certification still requires significant supply chain and chain-of-custody documentation. This distinction is nuanced, but important, points out Seth Ginther, executive director of the U.S. Industrial Pellet Association. &ldquo;In category B you have other certifications and processes that point to sustainability,&rdquo; he says. For those in the sector, the challenge now is making sure that the requirements are enough to satisfy foreign governments and fuel buyers without introducing a burden to the landowners and pellet producers who stand ready to serve that market. &ldquo;We&rsquo;ll continue to work with DECC and try to influence them to allow the source of the most sustainable biomass in the world to participate in this marketplace and that is the southeastern U.S.,&rdquo; says Jones.
 For Plum Creek, the decision to certify has been made. &ldquo;Certification is very good for a large commercial operation like Plum Creek,&rdquo; says Jostrom. &ldquo;It's a voluntary program so that we can tell our customers that we are doing the right thing. But it is very expensive and we are applying it to multiple age classes every year.&rdquo;
 Plum Creek&rsquo;s decision to certify its lands predated the emergence of the pellet market. Nevertheless, Jostrom and Plum Creek welcome this new market as an important part of an ongoing, sustainable forest management plan. &ldquo;Plum Creek is interested in the emergence of energy markets for our low-quality wood fiber,&rdquo; he adds. &ldquo;The reason is not because we envision that these will become the money crop for management. It is because it has become a tool for sustainable forestry. They allow us to use more of every tree that we harvest. They give us the economic means to thin our lands for forest health and productivity.&rdquo; Author: Tim Portz Executive Editor, Biomass Magazine <a href="mailto:tportz@bbiinternational.com">tportz@bbiinternational.com</a> 701-738-4969

An Adolescent Stand: This 16-year-old stand of timber awaits its first commercial thinning. The stand will be thinned from the original 600 stems that were planted to around 225 individual trees in its first thinning. The canopy produced by this grow

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The Cycle Continues: As long as landowners continue to have access to robust and varied markets, history shows that after completing a final harvest on their property, they replant those stands with the knowledge that theyâ€™ll have to wait over a de

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Superior Survivability: Plum Creekâ€™s Ken McQuage, nursery manager at the companyâ€™s Pearl River site, holds a containerized southern yellow pine seedling. While these seedlings are more labor-intensive to produce, they offer landowners survival ra

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Excited by the new market the pellet sector offers for low value fiber, forest landowners work to assure pellet buyers of existing sustainable practices.

A Body of Work

A proposed pellet plant under development near Mission, British Columbia, aims to produce wood pellets for export into industrial markets in South Korea and other Asian markets. The project is being developed by SMG Wood Pellet Inc., a subsidiary of Vancouver, British Columbia-based SMG Asset. The facility will be branded under the name Mission Wood Pellet.
 Paul Adams, operations manager for SMG Wood Pellet, said engineering work on the facility is nearing completion, while fiber supply agreements and offtake agreements are in place. The company is in the process of securing necessary permits.
 SMG plans to break ground on the project early next year with operations beginning in the second or third quarter. Once complete, the facility will have an installed capacity of 160,000 tons per year. Initial production will be in the range of 100,000 tons per year. &ldquo;This is going to be a first-of-its-kind facility in North America,&rdquo; Adams said, noting it will feature state-of-the-art technologies and best practices with regard to fiber handling and processing.

Proposed plant to export pellets to Asian markets

Highland Pellets LLC has announced plans to build a 500,000 metric ton-per-year plant in Pine Bluff, Arkansas. The facility&rsquo;s fiber supply is fully contracted for 10 years. Pellets produced at the facility are expected to be exported to Europe.&nbsp;
 Marshall Chapin, chief operating officer with Highland, said the company chose the location because of the availability of resources. &ldquo;The Pine Bluff area has an abundant and sustainable fiber basket, which can reliably support our fiber needs, and it has both rail and barge access for redundancy of logistics,&rdquo; he said.
 Although off-take agreements and feedstock partners are still confidential, the company said it is working with industry partners including a leading forestry company to provide sustainable fiber feedstock and Cooper/Consolidated for management of the logistics supply chain for export. Groundbreaking was expected to begin in October with pellet production in March 2016.

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Highland plans Arkansas project

When visiting the picturesque site of Eagle Valley Clean Energy, one might confuse the rolling, cattle-littered landscape with a farming operation.
Right on the edge of the ski town Gypsum, Colorado, the plant serves to preserve the beauty of the what the USDA Forest Service refers to as the &ldquo;crown jewel&rdquo; of our nation&rsquo;s public land system, the White River National Forest. Triggered by numerous circumstances including aging forests, warmer winters and extended drought, the western pine beetle has devoured millions of acres of Colorado&rsquo;s forests, prompting a desperate need for removal of dead, dying and falling trees. Via a 10-year contract with the forest service, Eagle Valley Clean Energy is doing just that, while spurring numerous other positive impacts.
 Partners Dean Rostrom and Kendrick Wait, with backgrounds in Wall Street and engineering, respectively, were working independently on renewable energy projects before partnering up to submit a response to a request for proposal (RFP) from Holy Cross Energy, the local utility in western Colorado that serves the mountain and ski resort regions. &ldquo;Consumers had voted and responded to a questionnaire with a resounding yes to renewable energy,&rdquo; explains Rostrom. &ldquo;As a result, Holy Cross put out an RFP for which we understand about 50 different proposals came in. They narrowed the list and finally decided on our proposal.&rdquo;
 Rostrom believes the advantage that set his and Wait&rsquo;s proposal apart from the other types of renewables are the benefits that wind and solar don&rsquo;t offer&mdash;the standard non-intermittency that biomass provides, but also forest health. &ldquo;That was huge, because of the mountain pine beetle epidemic that&rsquo;s swept through and devastated millions of acres in Colorado,&rdquo; Rostrom says. &ldquo;That&rsquo;s really the story here&mdash;that this is such a unique, long-term reliable tool for forest health management.&rdquo;
 After the signing of a 20-year power purchase agreement toward the 2011, the project began to gain momentum, but the course to completion wasn&rsquo;t exactly smooth sailing&mdash;navigating the red tape of accessing fuel on federal lands posed a challenge. &ldquo;That gave us some gray hairs,&rdquo; Wait admits. &ldquo;Cutting on federal lands is very difficult.&rdquo;
 The strategy to ease that burden was to bring in a partner who knew the ropes&mdash;a retired deputy forester, who served as a consultant and was able to score the project its forest stewardship contract with the USDA Forest Service. &ldquo;It provides for a certain number of acres every year that we&rsquo;re responsible for treating,&rdquo; Rostrom explains. &ldquo;They tell our logger&mdash;West Range Reclamation&mdash;where to go and how to treat the beetle-kill acres. They get it, chip and bring it to our facility.&rdquo;
 Just recently, the plant was qualified as a conversion facility under the USDA BCAP program. &ldquo;It&rsquo;s a very important project for the forest service, because it enables them to do some logging and forestlands treatment in area that we wouldn&rsquo;t otherwise be able to reach.&rdquo;
 Perhaps the most challenging aspect of the $60 million project was financing, Rostrom says. &ldquo;The market is still closed to anything other than right down the middle of the fairway type financing&mdash;it was very difficult to finance.&rdquo;
 The forest service contract was critical in that case, as well as long-term financing&mdash;a loan guarantee provided by the USDA&mdash;which took a year and a half to square away, on top of a year to secure the forest stewardship agreement. After going to commercial banks for the remaining funds, another year passed. &ldquo;It was several years&rsquo; worth of hard work,&rdquo; Rostrom adds.
 The 11.5-MW plant, which became fully operational last Christmas Day, consumes about 250 dry tons of biomass per day, according to Wait, who adds that beetle kill wood is typically very dry, requiring a boiler design specific for very low-moisture fuel. The partners describe the plant set up as typical&mdash;a standard fuel yard where chipped fuel is brought in, a steam boiler at the heart of the facility and an electrostatic precipitator to control emissions. Water treatment is done out of the Eagle River Basin. &ldquo;The interconnection point is right at the site,&rdquo; Wait adds, &ldquo;so we don&rsquo;t have to send our power miles over a new power line.&rdquo;
 Not your typical biomass power project, Rostrom points out that the operation is a classic, small-family business that&rsquo;s brought jobs and long-time investment to the community. &ldquo;We haven&rsquo;t just put up panels and gone away,&rdquo; he says. &ldquo;The two of our families own this business, and together, we&rsquo;ve pushed it through.&rdquo;
 Other partners in the project include Wellons and Bill Carlson, former Biomass Power Association chairman.
 &nbsp;&ldquo;One of the things we&rsquo;ve been excited and pleased about is we get a lot of calls from local landowners looking for an outlet to dispose of all of their clean woody biomass for free&mdash;people clearing out beetle-killed wood or treating private lands, agreements with landfills to ease clogging there, tree-trimming companies, or, for example, the town of Gypsum expanding a reservoir and had material they needed to dispose of,&rdquo; Rostrom adds. &ldquo;We can take stuff and help clean up the landscape. It&rsquo;s been really great&mdash;good for our industry, good for us because it&rsquo;s cheap fuel, and it&rsquo;s good for the community.&rdquo;
 Author: Anna Simet Managing Editor, Biomass Magazine <a href="mailto:asimet@bbiinternational.com">asimet@bbiinternational.com</a> 701-738-4961

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BOTTOMS DOWN: Chipped woody biomass is delivered to Eagle Valley Clean Energyâ€™s fuel yard daily.

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Sustainability is symbiotic when it comes to biomass power plant Eagle Valley Clean Energy and the fuel it uses.


October 2014

Business Briefs

Business Briefs

Business Briefs

Columns

Ethanol Slashes GHG Emissions

DDGS Already a Proven Ingredient in Aquafeeds

Sustainability Assessments Likely to Increase

Drilling Into the Details of Corn Stover Biomass

Biomass Transformations

With Consolidation Comes Strength

The Future is Here

It's Not Me, It's You

The Future of Pellets

Reflecting on the Future

A Visionary Model for Biogas Projects

Making the Most of Woody Biomass

Scientific Endorsement of Biomass's Carbon Benefits

Stewards of Sustainability

Featured

Victory For Project Liberty

Boosting Biomass for Bioenergy

Ahead of His Time

Stover Pellets Pack in the Pounds

Sourcing Stover Sustainably

Compressed Potential

A Body of Work

Contributions

Control System Upgrade Yields Greater Sustainability and Output

Capturing the California 'Golden Gallon'

Achieving Sustainability Goals

Departments

Caretaking Colorado's Crown Jewel

October 2014.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Business Briefs

Business Briefs

Columns

Ethanol Slashes GHG Emissions

DDGS Already a Proven Ingredient in Aquafeeds

Sustainability Assessments Likely to Increase

Drilling Into the Details of Corn Stover Biomass

Biomass Transformations

With Consolidation Comes Strength

The Future is Here

It's Not Me, It's You

The Future of Pellets

Reflecting on the Future

A Visionary Model for Biogas Projects

Making the Most of Woody Biomass

Scientific Endorsement of Biomass's Carbon Benefits

Stewards of Sustainability

Featured

Victory For Project Liberty

Boosting Biomass for Bioenergy

Ahead of His Time

Stover Pellets Pack in the Pounds

Sourcing Stover Sustainably

Compressed Potential

A Body of Work

Contributions

Control System Upgrade Yields Greater Sustainability and Output

Capturing the California 'Golden Gallon'

Achieving Sustainability Goals

Departments

Caretaking Colorado's Crown Jewel

October 2014