Verenium Corp. appointed Alexander Fitzpatrick senior vice president and general counsel. Fitzpatrick has represented several publicly traded biotechnology and pharmaceutical companies, including Verenium, in numerous collaborations, licensing agreements and financing activity, advising on biotech intellectual property and patent disputes.

Katie McKenna has joined the staff at Ferm Solutions Inc. as a technical support technican. McKenna has a degree in biology from Centre College in Danville, Ky., and is trained in all aspects of fermentation. Danville-based Ferm Solutions is a fermentation product provider, offering support from its staff with backgrounds in the microbiology and biochemistry of fuel ethanol production.

Lignol Energy Corp. appointed Colin South chief technology officer. He will continue to serve on the board of directors. South was the founding president of Mascoma Corp. and held senior leadership positions in the life sciences industry with Fonterra Cooperative Group and ViaLactia Biosciences.
Separately, Lignol announced that its vice president of research Alex Berlin is leaving the company to join Novozymes as manager, protein chemistry division. Lignol and Novozymes have an active joint development program to make cost effective cellulosic ethanol from wood and remain committed to the collaboration.

Enerkem Inc. appointed Bruce Aitken, president and CEO of Methanex Corp., to its board of directors. "As the CEO of the world's largest supplier of methanol, Bruce will bring to Enerkem invaluable managerial experience as well as a strong industrial experience and knowledge of the chemicals market," said Enerkem CEO and President Vincent Chornet. Enerkem's proprietry waste-to-biofuels technology produces biomethanol as an intermediate for the production of ethanol. The company operates a pilot facility in Sherbrooke, Quebec, a demonstration plant in Westbury, Quebec, and has a commercial plant under construction in Edmonton, Alberta. The company is simultaneously developing a similar project in Mississippi, for which it received $50 million from the U.S. DOE.
Enkerm also appointed Dirk E. Andreas senior vice president of business development, North America, and promoted Patrice Ouimet, to senior vice president, continuing in his role as chief financial officer. Andreas most recently worked at the world's largest owner-operator of wind generation facilities, Iberdrola Renewables Inc. Patrice joined Enerkem as chief financial officer in February.

Jim Nussle, former eight-term Congressman and Director of the Office of Management and Budget under President George W. Bush, was named president and chief operating officer of Growth Energy. Nussle, who has served on the board of directors of Growth Energy since February 2009, started in the newly created position on Nov. 1.

Poet LLC plants in the Eastern Corn Belt have new faces in the top management positions. Steve Pittman is the new general manager at Poet Biorefining-Portland, Ind. Before joining Poet, Pittman spent more than 20 years in engineering, quality and plant operations management, including 12 years in plant general management. Pittman's experience includes project management, new plant launches, turnaround activities, and realignment assignments. Cliff Brannon is the new general manager at Poet Biorefining-Marion, Ohio, replacing Dave Brooks who moved to manage Poet's newest plant in Cloverdale, Ind. Brannon worked for 23 years with Sony in the optical media manufacturing group, including leadership in plant construction and management, quality assurance, process improvement and business development Prior to joining Poet in 2009, Brooks served in leadership positions with Sabert Corporation, Hilex Poly Co. and Sonoco Products Co., all manufacturers of plastic products. The Cloverdale plant was acquired by Poet from AltraBiofuels in June of 2010. Poet is currently completing $30 million in process and plant design changes. The plant is expected to reopen in spring of 2011.

GTL Resources USA Inc. and its subsidiary, Illinois River Energy LLC, have appointed Jeffrey Lemajeur chief financial officer. He will provide financial oversight for both GTL and IRE and participate in overall strategy and business development initiatives. The company's strategy is to adopt emerging technologies in the 115 MMgy plant in Rochelle, Ill., and to become an advanced biorefiner, adding revenue streams to the base ethanol business. GTL's goal is to further grow by applying these new technologies to other ethanol plants through merger, acquisition and licensing.

Bob Randle, formerly a commercial development expert with Genencor-a Danisco division, has joined Genera Energy LLC as vice president of business development. Wholly owned by the University of Tennessee Research Foundation, Genera provides a vehicle to leverage state and federal funding with private research and development and strategic partnerships, including a joint venture with Dupont Danisco Cellulosic Ethanol LLC in Vonore, Tenn.

Archer Daniels Midland Co. has realigned its senior leadership in support of a commitment to significantly grow shareholder value, according to Chairman and CEO Patricia Woertz. John Rice, who leads the company's commercial and production teams, was named vice chairman. He will focus on extracting value from existing assets and driving operational excellence. Steven Mills, chief financial officer since 2008, was named senior executive vice president, performance and growth. Ray Young will take over the role of chief financial officer and become a senior vice president. Young comes to ADM from General Motors Co., where he most recently served as vice president, international operations, based in Shanghai, China. Previously, he served as GM's chief financial officer.

Live ethanol and biodiesel trading kicked off Oct. 28 on the web-based U.S. Biofuels Exchange, the US-BX. Registered users can post, buy, sell and place offers on biofuels for sale or biofuels wanted at www.us-bx.com. Although there are other online trading exchanges for biofuels, US-BX is unique in utilizing "cloud computing," requiring no software to purchase, download or install. "We offer biofuels producers, brokers, blenders, distributors, importers, exporters and marketers the ability to anonymously buy and sell ethanol and biodiesel as well as the ability to make, receive and choose between multiple offers on listings," said James Kaufman, US-BX vice president.

ICM Inc. has signed a contract with Hereford Renewable Energy LLC, a subsidiary of Murphy Oil USA Inc. to retrofit the 115 MMgy Panda Ethanol plant in Hereford, Texas. Hereford Renewable Energy LLC acquired the uncompleted plant from the lenders of its former owner, Hereford Biofuels LP, which filed for bankruptcy. The retrofit is anticipated to be completed by the end of the first quarter 2011.

Texas-based Celanese Corp. announced plans to build one or two coal-to-industrial ethanol plants in China and one natural gas-to-industrial ethanol plant in Clear Lake, Texas. The company uses elements of its core acetyls technology combined with advancements to make industrial ethanol out of basic hydrocarbons, including natural gas, coal and pet coke. While the company is focusing on industrial uses at this time, such as ethyl acetate production, it is exploring opportunities for fuel ethanol applications.

DuBay Biofuels-Greenwood LLC, a proposed 3 MMgy ethanol plant in Greenwood, Wis., recently received a $1.7 million Wisconsin Energy Program loan and $300,000 from the city of Greenwood for land development. DuBay Biofuels, a wholly owned subsidiary of Caseus Energy LLC, will produce ethanol from whey permeate, a cheese production waste product. The company is in the permitting process and expects the ethanol plant to be up and running in the fourth quarter of 2011.

Didion Milling Inc., a producer of fuel ethanol and food-grade milling products, has implemented Intellego Grain software at its processing plant in Cambria, Wis. Christianson & Associates PLLP, a developer of enterprise resources planning (ERP) software implementation for biofuels producers, partnered with the Didion team to develop the fully automated ERP system, which integrates the procurement of corn, production, tracing of food and fuel, and the delivery of financial statements.
Groundbreaking took place Oct. 15 in Danville, Va., for a Sustainable Energy Technology Center. The new center will conduct research and development projects for ethanol, biodiesel and bioproducts, evaluating how southern Virginia's land could be used for renewable energy projects. It is funded by a grant from a Virginia Tobacco Indemnification Commission and Community Revitalization Commission. Research on biomass including hybrid poplar, switchgrass and Jerusalem artichoke will be extended to incorporate biofuel conversion research at the new center.

In its legal battle to protect its patent, GreenShift Corp., and its subsidiary, GS CleanTech Corp., added Flottweg AG and Flottweg Separation Technologies Inc. to its list of suits. ICM Inc., GEA Westfalia Separator Inc. and 14 ethanol plants in Illinois, Indiana, Iowa, Minnesota, Wisconsin and North Dakota are also being sued for patent infringement. Those cases were consolidated in August and will be tried in the Southern District Court of Indiana.

Using a proprietary gene construct, California-based iDiverse has successfully modified yeast to be highly resistant to a suite of lethal stresses including heat and osmotic stresses, acetic and lactic acid stressors and, in cellulosic processes, furfurals, resulting in ethanol yield improvement of 5 to10 percent. "Our technology is applicable to current fuel ethanol manufacturing processes using corn and sugar cane as starting materials, and also to those being developed to use cellulosic biomass. Our technology keeps cells alive in extreme conditions, including those found in biomass processes," explained Richard Schneeberger, director of business development.
For the second year, Kansas Ethanol LLC, Lyons, Kan., received the Award of Honor from ERI Solutions Inc. for demonstrating the highest commitment to safety, receiving the highest combined scores in the areas of ERI safety audit scores, OSHA incident rates and workers compensation. The second tier Award of Excellence-those plants ranking in the highest 10 percent-included Advanced BioEnergy South Dakota LLC, Huron, S.D.; Adkins Energy, Lena, Ill.; Bonanza BioEnergy, Garden City, Kan.; East Kansas Agri-Energy, Garnett, Kan.; and Western Plains Energy, Oakley, Kan. The ERI safety group is made up of more than 65 ethanol producers.

Sheetz Inc., a family-held convenience store chain, has established an East-West Clean Fuel Corridor where E85 can be purchased between Pittsburgh and Harrisburg, Pa. "We are taking this step to help our customers who want to use E85," said Stan Sheetz, president and CEO. "They shouldn't have to search for E-85 locations as they travel. Our goal is to expand the use of E-85 into more locations and to extend the corridor and help our customers." The company operates more than 380 convenience locations throughout Pennsylvania, West Virginia, Maryland, Virginia, Ohio and North Carolina.

AE Advanced Fuels Keyes Inc., a California ethanol plant currently being retrofitted, has signed an exclusive marketing agreement with Kinergy Marketing LLC, a subsidiary of Pacific Ethanol Inc., to sell all ethanol produced by the 55 MMgy plant when it becomes operational again in early 2011.

Brazil's Petrobras has signed a 10-year contract to supply hydrated ethanol to Toyota Tsusho Corp. Brazilian sugarcane ethanol will be used as a feedstock to produce the biobased plastic, Bio-PET, that Toyota Tsusho is deploying with a partner in Taiwan. The contract calls for 143,000 cubic meters of ethanol per year (about 38 MMgy).

Midtex Oil LP utilized Protec Fuel LLC's turnkey E85 fuel program for its E85 stations, the latest opening in Kerrville, Texas. Midtex now has three E85 stations in Texas. Based in Boca Raton, Fla., Protec provides turnkey ethanol programs for retailers, fleets and fuel distributors throughout the U.S., including site selection, station design, equipment and installation, conversion, grant assistance and support with marketing and sales.
Pall Corp. has developed a modeling system to help researchers and process developers. The specialist in filtration, separation and purification has developed a research and modeling scale (RAMs) crossflow filtration system that integrates a high level of data collection with a small batch production capacity to facilitate large-scale process and economic modeling during early stages of development. The RAMs system will help developers understand how membranes can be applied to their processes, and can be used to develop early stage guidance for the use of membranes in several applications areas.

Emerson Industrial Automation has released a video using a humorous story line to describe global water issues and the company's new system. Using a specially engineered polybutylene material, the System Plast New Generation helps producers move from a soap- and water-lubricated system to a dry-running system, saving water expense, eliminating the cost of lubricants and improving safety.

Fluid Components International announced its ST75 flow meter, designed for process gas, fuel gas, inert gas, waste gases and air in small line sizes, has received FM Global and CSA International approval for safety in rugged process industry plant environments. In hazardous factory areas and crowded plants where explosive, flammable or toxic gases may be present near transmitting electronics, the ST75's remote mounting capabilities ensure an accurate and low-maintenance measurement solution for small line size gas and air flow applications in hard-to-reach locations. The company also announced that it has opened a subsidiary in Beijing.

Butamax Advanced Biofuels LLC has opened a biobutanol technology laboratory in Brazil. Tim Potter, CEO Butamax, was joined by Ricardo Vellutini, DuPont do Brasil's president, for the ribbon cutting and media tour of the new facility Nov. 3. Butamax has developed an all new technology which will enable economic production of biobutanol through existing sugarcane mills, according to the company. Butamax was formed to develop and commercialize biobutanol as a next generation renewable biofuel combining DuPont's proven industrial biotechnology experience and BP's global fuels market knowledge. In addition to Brazil, Butamax is conducting research in India, the United Kingdom, Germany and the United States.

Aventine Renewable Energy Holdings Inc. named Calvin Stewart to serve as its chief accounting and compliance officer. Before joining Aventine, Stewart served as chief financial officer of White Energy Inc. He also worked at Dresser Inc., a global manufacturer of highly engineered energy infrastructure and oilfield products and services, and at Siemens Maintenance Services.






Share your industry briefs To be included in Business Briefs, send information (including photos and logos if available) to: Business Briefs, Ethanol Producer Magazine, 308 Second Ave. N., Suite 304, Grand Forks ND 58203. You may also fax information to (701) 746-8385, or e-mail it to sretkaschill@bbiinternational.com. Please include your name and telephone number in all correspondence.

New Hire Katie McKenna will put her biology training into use as a fermentation specialist.

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Beltway Expertise Jim Nussle is the new high profile voice for Growth Energy.

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Indianapolis Native Steve Pittman joins Poet with 20 years in engineering, quality and plant operations management.

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Moving In Cliff Brannon is the new manager in Marion, Ohio, joining Poet after 23 years with Sony in the optical media manufacturing group.

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Newest Plant Dave Brooks is moving from Marion, Ohio, to lead Poet?s newest plant in Cloverdale, Ind.

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Business Briefs

Fiduciary duties. Due diligence. Risk management. Strategic planning. Ethanol plant board members have a list of weighty duties to navigate.
Jill Zimmerman keeps the shareholders in mind at all times as she participates in the regular board meetings of East Kansas Agri-Energy LLC. The duty of a board member is to represent shareholders, she says, and everything the board does should be examined through that lens. Does it increase shareholder value? Is it good for the company? Does it fit with the goals for the future? This can be a heavy responsibility, especially because many times shareholders are family, friends and neighbors. "You sat on the front porch and you sold it to your brother, so if it doesn't do good, you are in trouble," she tells EPM.
Learning Curve 
In his time working with ethanol plant board members, Scott McDermott, a partner in accounting firm Ascendant Partners Inc., has noticed there are many inexperienced board members. Compared to the agriculture and food industries, which the company also works with, the ethanol industry is still a relatively young industry. "A lot of them have very smart board members, but there is not a ton of board experience," he says.
An inexperienced board member will need time to understand such basic things as how to conduct a board meeting, set up and work on committees and prioritize important decisions. There's two ways to learn those things, No. 1, from other board members with more experience or, No. 2, through the "school of hard knocks," he says.
Beyond that, board members need to know their way around commodity markets and understand commodity volatility. In some cases, an ethanol plant board member may be a newcomer to the industry. "There's a pretty tough learning curve in an industry that is as volatile as it gets, from a margin business volatility standpoint," McDermott tells EPM.
Another issue is that different people got into the business for different reasons. Some are long term players in the ethanol business. They are patient and willing to wait to get cash out the business. Others got involved during the boom and thought that would last forever, he says. They thought ethanol was going to be a money printing press without risk. "Frankly there is some sticker shock," he says. "When you make good money, you make good money, but it also comes with some losses."
Board members with different priorities can cause divisions because there isn't a single philosophy for long term capital planning. It disrupts the company's ability to set or pursue a strategic vision. "That division keeps them from being effective and having the focused future that they planned for," he says. "Even when you plan, it sometimes doesn't work, but some of these [boards] seem not to have a plan because of the divisions in their boards and management. Fully Engaged Board members have very important fiduciary duties. If they don't properly carry out these duties, they could be legally liable-as a board or even as an individual.
"Sometimes I don't think board members fully understand what fiduciary duties and liability exposure they really have by being on a board," says Donna Funk, a member of Kansas-based accounting and consulting firm, Kennedy and Coe. Funk has seen cases of board members not being fully engaged at the board level. Some vote on things they don't understand and without doing their due diligence, she says.
Another thing board members should keep in mind is that if information is shared with shareholders or the community, it should be shared with everyone, not just a few. "Sometimes it takes a while for them to understand what gets discussed in the board room needs to stay in the board room and not get talked about at the coffee shop the next day," Funk says.
If a lawsuit is filed it doesn't mean anybody did anything wrong or that the lawsuit will be successful, but it is something to be cautious about. "You've got to be careful in how you're presenting yourself and what information you are sharing so that you don't help create that false perception," Funk says. McDermott agrees that board members need a better understanding of their legal obligations. Some simply don't know what they are, while others need to be reminded, something he believes the legal counsel to the board should do periodically. "To be honest with you, I've been very surprised that there hasn't been more litigation during this tough time," he says.
The thing to remember is that these regulations and rules are put in place for a reason. "We don't like them," he adds, "but we hate to admit that they probably make for a better company."
Brad Rayl, who serves as a board member for Kansas Ethanol LLC, in Lyons, Kan., confirms that fiduciary duties can be a tricky thing. Still, the board he serves on is made up of people with extensive experience on other boards so they have a good understanding of what it means. Care needs to be taken when board members do business with the ethanol plant-a highly likely scenario in rural America. As long as everything is above board, and everyone knows what's happening, there's nothing wrong with that, Rayl says.
At Kansas Ethanol some board members are farmers and sell grain to the plant, but they don't get special treatment. Another director owns a feedlot and buys distillers grains from the plant, and is treated like any other customer. Rayl is part owner in an insurance broker agency which provides insurance to the plant, but his company isn't the only one that board members consider when it's time to renew policies, he says.
Zimmerman sees due diligence as the most critical task a board member can do. It's vital, she says, to be very thorough and never underestimate the amount of homework you need to do to understand all facets of the business and company. This is necessary to help make good decisions and speak intelligently at board meetings. "It's your responsibility to bring yourself up to speed," she says.
Top Level Focus 
Funk says boards often struggle with finding the right balance between what the board is responsible for and what it should let management do. Although how that separation is set up varies, the board should not cross the line into what it is paying management to do. "The board is the top level, overarching level of governance," she says. "The board's focus should be more on the corporate strategy, goal setting-the vision piece."
Management, on the other hand, is in charge of the day-to-day operations. For example, the board hires the top level management and the management hires the employees below them. The board should restrict its involvement in employee issues to the top level only, leaving management to deal with other employees. "If an employee would come to me with a problem, I am the wrong guy to talk to," Rayl says.
In some cases the board members are people who have been involved with the project from day one, Funk says, starting with fundraising all the way to plant construction and start up. They may not realize what they are doing, but they sometimes attempt to micromanage every decision simply because they are so used to being heavily involved. Once the board has hired a management team, however, it's time to step back and let them do their jobs. "There very often is a struggle in that transition," she says.
While a board may feel like it is directing a small company, it's best not to think that way, Funk tells board members. She advises them to think of themselves as a company with a larger corporate structure, such as IBM Corp.-a board that meets regularly, not to make the day-to-day decisions of the company, but to set higher level corporate strategy.
McDermott agrees that having clear roles and responsibilities is key. "If everybody is a manager, nobody is a manager," McDermott says. "You've got to have clear leadership-clear management of the company, clear board leadership."
The structure can vary, however. On a co-op board-a background many ethanol plant board members come from-the management sets the vision and the board reinforces it. Some ethanol plants combine elements of a co-op board and a public corporation. "It depends on the types of board members and types of shareholders where in the continuum you find the model," he says, adding that every board needs to find a clear separation between the duties of the board and management, and do it in a way that works for it.
Dick Sterrett serves on three ethanol plant boards: Kansas Ethanol, Western Plains Energy LLC and Sterling Ethanol LLC, which also includes Yuma Ethanol LLC and Bridgeport Ethanol LLC. He says it this way. "Don't rock the boat that's sailing fine."
Building Expertise
With all the potential pitfalls facing ethanol plant boards, how can boards educate themselves? Funk suggests reading books on leadership and boardsmanship along with attending board training sessions. Another way to gain insight is by talking to seasoned board members and the board attorney.
Generalized board leadership programs are helpful, McDermott agrees. But training that's specific to ethanol plant boards is hard to find. "In this space, there's nothing specialized," he says.
One thing boards can do is hire consulting companies to assist. Kennedy and Coe works with boards during strategic planning sessions to help them understand roles and responsibilities, how to have effective planning sessions and set goals and action items, Funk says. Ascendant Partners offers help with strategic planning too, plus works with plants on operational benchmarking and performance improvement initiatives, McDermott adds.
East Kansas Agri-Energy works with Kennedy and Coe at yearly strategic planning sessions for the board and upper level management. It's a very valuable exercise that Zimmerman recommends other boards take part in. They use the SWOT Analysis tool, which evaluates strengths, weaknesses, opportunities and threats, to determine if last year's goals were achieved and whether anything has changed. The board then reviews it quarterly, she says. The difficulty is that some board members don't realize there's a problem until faced with an issue. Often the attitude is that other boards may need help but their board is just fine. "They don't realize how disconnected they are," McDermott says.
But in times like these, boards can't afford to neglect a strong strategic focus. Without it, plants are put into the position of getting handed a future that simply happens, versus a future that's wanted. "Not having a plan for where you want to be is a recipe for getting an outcome you don't like," he says.
Step up and Serve
Despite the difficulty and potential liabilities facing board members, Zimmerman, Sterrett and Rayl say it is a rewarding experience. Zimmerman remembers the early days when the board wasn't sure where the next dollar was going to come from. Today, she says with satisfaction, the plant has very little debt and investors have all their money back plus more. Before Sterrett started as a board member he didn't realize how long it would take a diversified group of people to make good decisions, he says. In addition, it can be difficult to find dedicated people willing to serve-much like in politics. Still, he encourages people to open their eyes and jump in. "Columbus took a chance," he says. "Why not you?"
Rayl has fun doing what he does. "If you don't look forward to doing something, why subject yourself to it?" he asks. "Life is too short I think."
Author: Holly Jessen Associate Editor,
Ethanol Producer Magazine
(701) 738-4946 hjessen@bbiinternational.com

Focus on Ethanol The East Kansas Agri-Energy ethanol board meets regularly with staff. PHOTO: Katie Rocker

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Young Boards Ascendant Partners? Scott McDermott says not only is board experience scarce, but individual director goals can vary widely.

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Diligence Required Kennedy and Coe?s Donna Funk says some board members don?t fully understand their responsibilities. 

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Clear Roles A smoothly operating board knows the proper separation of duties between the board and management. PHOTO: Katie Rocker

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Serving as an ethanol plant board member can be a difficult, yet highly rewarding, task.

Always Above Board

While overwhelming scientific evidence suggests E15 is perfectly acceptable for use in vehicle models 2001 and newer, consumers won't see scientific reports when they pull up to the gas pump. Instead, their fuel purchase will be heavily influenced by one small square piece of paper. The power of that label's language is not being overlooked by ethanol and petroleum industry members as they file comments on the U.S. EPA's proposed E15 label before the Jan. 3 deadline.

During a public hearing held by the U.S. EPA Nov. 16 in Chicago, Ron Lamberty, vice president and director of market development for the American Coalition of Ethanol, reminded EPA officials of the issues that resulted from the "surgeon general-style warning labels" used by retailers when E10 was introduced. "That type of labeling primarily served to cause doubt in consumers, create false fears and form irrational linkages to problems that had no relation to ethanol," he said. "That fear gave unscrupulous mechanics and repairmen an opportunity to take advantage of concerned customers by charging them for mysterious problems supposedly caused by 'gasohol.' … The issue of labeling is significant to the ethanol industry, and history shows that ethanol labels cause as many problems-and maybe more problems-than ethanol itself."

The ethanol industry prefers a white E15 label that does not include a warning about possible damage to vehicles. Industry representatives believe it is fair to omit this warning because there is no conclusive evidence that E15 could cause damage to unapproved vehicles. Lamberty says including the word "damage" on the label would validate unsubstantiated claims. ACE's alternative suggestion is a statement which informs consumers that using E15 in unapproved vehicles is a violation of federal law.
John Eichberger, vice president of government relations for the National Association of Convenience Stores, says his group is not anti-E15. Rather it is focused on enabling its members to profitably sell E15 and to dissuade misfueling. He urged the agency to convene a conference of stakeholders to address legal concerns before the rule is finalized.

Growth Energy CEO Tom Buis expressed confidence in consumers and said he believes the EPA will design a fair label. "Many consumers today are required to use premium fuel, and diesel drivers have a bifurcated market that requires them to be educated about their fuel choices at the pump," he said. "Consumers are capable of reading a label. They have been doing it for years."

Over 1,000 comments had been filed by mid-November, demonstrating the need for careful language. Many comments from private citizens indicated concern that the EPA's approval of E15 is a mandate and that using the fuel will damage their vehicles.

A Start The U.S. EPA?s proposed label for E15 features a warning that it could cause damage to un-approved vehicles. The ethanol industry opposes this language. source: U.S. EPA

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Label it In comments made to the U.S. EPA regarding its proposed E15 label, the American Coalition for Ethanol said it prefers wording similar to the current E85 label.

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Careful wording on E15 label crucial to industry

It's How You Say It

United Ethanol LLC has started work on installing an anaerobic digester at its 50 MMgy ethanol plant in Milton, Wis. A portion of the plant's thin stillage will be used to create methane, and reduce natural gas use by up to 25 percent. The $6.75 million project is being supported with $2.25 million in state energy program funds, funded through the American Recovery and Reinvestment Act. The anaerobic digester is expected to reduce the number of fermentation solids that have to be recycled, reduce fermentation inhibitors, reduce evaporator bottlenecks and eliminate syrup load-out. Technology provider Eisenmann Corp. will install the digester. The project should take about a year to complete.

Digested Power

It only took 20 years and 1,000 experiments. In 1987, Karl Weydahl and Knut Helland, co-founders of Norway-based Weyland BioEthanol A/S, began collaborating with Bergen University to develop a process to convert cellulose to ethanol. In October, the company opened the doors at its 200,000 liter (approximately 53,000 gallon) facility in Bergen, Norway, and has plans to scale up to a commercial facility after its process proves efficient at the pilot-scale.

"Weyland aims to become an international supplier of technology for production of bioethanol from cellulosic feedstocks," says Weyland CEO Petter Bartz-Johannessen. "The pilot plant will allow us to demonstrate the technology's suitability for full-scale production."

The technology that was so long in the making is based on concentrated acid hydrolysis. At the core is a patent-pending acid recovery method that recovers approximately 98.5 percent of the acids and solvents used in the process and produces high yields of ethanol-approximately 1 liter of ethanol for every 8 pounds of feedstock. The company has verified its process with multiple cellulosic feedstocks, including sugarcane bagasse, corn stover, rice straw, hardwoods, softwoods, wood wastes and paper wastes.

Weyland believes its process will make it an international leader of cellulosic ethanol technology. "Our dream scenario is to achieve this in Norway, enabling Norway to contribute to the production of renewable energy and the creation of green jobs," Bartz-Johannessen says. "However, this requires both political determination and drive."

It also requires capital. Norway-based Statoil, which is one of the world's largest oil and gas production companies, began investing in the company in 2009. Statoil is invested in several ethanol-related technologies, including California-based Bio Architecture Lab Inc., which is developing a consolidated bioprocessing technology to convert seaweed to ethanol. Statoil is also partnered with DONG Energy and Royal DSM for the Kalundborg Cellulosic Ethanol Project, using Inbicon A/S' agricultural waste-to-ethanol technology. One hundred Statoil retail stations in Denmark are currently selling Bio95 2G, an E5 blend of Inbicon's second-generation ethanol.

Norwegian developer brings cellulosic pilot plant online

A Long Time Coming

The race to commercial viability for cellulosic ethanol may be coming to a close, according to a Boston Consulting Group report.
Alternative energy technologies are poised to reshape the energy landscape-with a potential to disrupt the status quo by 2025, according to a report released in November, "What's Next for Alternative Energy." It's a result that admittedly surprised the authors of the report, says Balu Balagopal, a senior partner and managing director for BCG. "The silent revolution is happening," he says.
Authored by Balagopal, Petros Paranikas, partner and managing director, and Justin Rose, principal, the report focuses on six alternative energy technologies for transportation and power generation. Under transportation, the study examined advanced biofuels and electric vehicles. For electric vehicles, it concluded the technology will become economically attractive for lead market segments by 2020. Broad adoption, however, will require lower battery costs, plus slow fleet turnover means it will take a decade before electric vehicle numbers increase materially.
On the other hand, the authors challenge the skeptics who say advanced biofuels will only be viable by 2020 at the earliest. "We believe that their fundamental economic viability will likely be established over the next few years or certainly well before 2020," the report says. "Then the pace of adoption will be influenced primarily by how quickly the infrastructure barriers can be overcome."
Large-scale cellulosic facilities are expected to reach unsubsidized retail-cost parity with gasoline at $3 a gallon between 2012 and 2015. BCG analysis shows the production cost of cellulosic ethanol is at $1.99 a gallon for 2012, dropping to $1.59 a gallon for 2014. "We certainly saw advanced biofuels as something that was definitely going down the cost curve, and while there were many barriers they were surmountable," Balagopal tells EPM. "Lignocellulosic ethanol [in particular] is far closer to cost competitiveness than it is often given credit for."
Biobutanol is also mentioned in the report as having superior properties as a fuel. Algae technologies have long-term promise but are in the very early stages of development, the report says. Sugarcane ethanol is noted as being an exception among first-generation ethanol technology-competitive with gasoline today and reducing carbon emissions by as much as 90 percent.

Production Cost Declines for Cellulosic Ethanol SOURCE: Boston Consulting Group

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Cellulosic ethanol costs rapidly decline, barriers are surmountable

Closer than Thought

The U.S. ethanol industry was created in part to displace the need for imported oil. But how is domestic ethanol use impacting the global gasoline market? A report issued by research and consulting firm Energy Security Analysis Inc. offers a surprising look at the impact U.S. ethanol is having on transportation fuels markets worldwide.

ESAI's clients consist mainly of international oil companies and refiners. The report was written from a conventional fuels perspective and focused on transportation fuels markets in the Atlantic Basin, which includes North America, Latin America and Europe, and evaluated how alternative fuels are being integrated with traditional fuels.

While the markets included in the study are already some of the largest biofuels markets in the world, ESAI researchers found that the continued growth of biofuels demand, specifically ethanol in North and Latin America and biodiesel in Europe, will squeeze out a significant portion of gasoline demand over the next two years. In the U.S., increased demand for ethanol as a result of growing renewable fuel standard requirements will cut the need for gasoline imports by more than half of 2008 levels within the next two years. The result is an emerging transportation fuel market that includes ethanol as a primary component, says Sander Cohan, ESAI principal and lead alternative fuels researcher for the firm.

"This is a tipping point," he says. "The volume of ethanol blending in the United States has moved from something that is a relatively small amount to something that is a substantial and very real part of mainstream fuels. This is a change to the business model that should be addressed sooner rather than later."

Because of ethanol's growing role in the U.S. market, exporters of gasoline to the U.S. will find themselves with a stockpile of petroleum, Cohan says. Traditionally, the U.S. has consumed about 1 million barrels of gasoline imports per day. In the past, much of that demand has been supplied by Europe, which traditionally has a substantial surplus of gasoline. Europe ships gasoline to the U.S. and the U.S. backhauls diesel to Europe. Cohan says this arrangement has been convenient for both markets, but that is about to change. "As the United States exports diesel, it has less of an appetite for gasoline," he says. "What that means is that European gasoline has to go elsewhere. They have to start looking for new markets." As a result, European gas suppliers are expected to target replacement markets in areas of the Middle East and Africa.

Another new issue brought about by increased ethanol consumption in the U.S. is the demand cycle for RBOB (reformulated blendstock for oxygenate blending). Foreign producers look to the U.S. East Coast as an RBOB demand center, which is changing from a steady year-round market to a seasonal market. "You'll see foreign exports really peak in the May-June-July period," Cohan says. "For exporters to the U.S., they're starting to see a shift in trade patterns and that requires a change of strategy."

Because ethanol will consume a larger share of the gasoline market in the next two years, ESAI expects the U.S. to shift its focus towards ethanol blending. The firm predicts in its report that ethanol blending demand will rise from just over 775,000 barrels per day in 2010 to 850,000 barrels per day in 2012.

How will this affect oil and refining operations? Cohan expects they will assume larger roles as producers and blenders of biofuels over the coming years. "Oil companies and refiners are very savvy firms," he says. "They're starting to address this very seriously and this is a definitive example of the tide changing."

The Squeeze Demand for ethanol as a result of the U.S. renewable fuel standard is beginning to impact the nation?s demand for imported gasoline. Source: ENERGY SECURITY ANALYSIS INC.

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Ethanol's influence grows in global trade

A Changing Tide

Union workers at the 160 MMgy Aventine Renewable Energy Inc. ethanol plant in Pekin, Ill., ratified a collective bargaining agreement with Aventine Oct. 29, well before a Nov. 21 deadline. The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industry and Service Workers International Union represents Aventine's hourly employees at the Pekin plant, about 44 percent of the company's employees.

Oct. 12, union workers at the Pekin plant rejected Aventine's "last, best and final offer for a new contract," according to company filings with the U.S. Securities Exchange Commission. One day before the deadline after a three-week extension, the union and Aventine came to an agreement. "The benefit and base wage packages for the currently covered employees remain substantially similar to those in the previous collective bargaining agreement," says a Nov. 4 SEC filing. "The currently covered employees will also receive lump sum annual payments of $750 in November 2010 and November 2011."

Unionization in the ethanol industry is uncommon.

Strike a Deal

For years, cellulosic ethanol has been five years away from commercial viability. With several companies making significant progress in 2010 towards groundbreaking and five expected to be in production, will 2011 be the year that cellulosic ethanol finally makes its commercial debut?

The U.S. EPA, which still projects volumes well below the initial targets, on Nov. 29, announced the final volume requirements for the 2011 renewable fuel standard, with the cellulosic biofuel volume set at only 6.6 million gallons. The EPA named DuPont Danisco Cellulosic Ethanol LLC, Fiberight LLC, KL Energy Corp., Range Fuels Inc. and KiOR, a cellulosic diesel fuel producer, as the companies it expects to produce cellulosic biofuels in 2011.

Among the cellulosic ethanol companies hitting significant milestones in late 2010 is Fulcrum BioEnergy Inc. In mid-November, Fulcrum became the first to reach the negotiation phase of the DOE loan guarantee program for its proposed 10.5 MMgy municipal solid waste (MSW) cellulosic ethanol plant near Reno, Nev. Construction is expected to begin by the end of the year, with start of production in 2012.

Ted Kniesche, vice president of business development for Fulcrum, tells EPM that the U.S. is on the verge of seeing several commercial-scale cellulosic ethanol plants start construction. "These breakthrough plants, along with consistent energy policy from Washington will lead to even further breakthroughs, more investments and more production," he says. Washington needs to strengthen its support for advanced and cellulosic biofuels in order to maintain this momentum, he adds, suggesting three policies he believes the White House and Congress should support.

&bull; The 30 percent investment tax credit that currently benefits renewable power projects should be passed for biorefineries to stimulate capital markets and help bridge the fundraising gap.

&bull; A definition of renewable biomass needs to be developed that can accommodate new feedstocks and technologies.

&bull; The renewable fuel standard needs continued and strong support, including mandates for advanced and cellulosic fuels.

As long as funding from the U.S. DOE doesn't dry up, Arnold Klann, CEO of BlueFire Renewables Inc., agrees that 2011 will be a big year for cellulosic ethanol. BlueFire is very close to securing final DOE loan guarantee approval for a planned 19 MMgy cellulosic ethanol facility in Fulton, Miss. The company announced Nov. 10 that initial site work had begun after it had received its final air, wastewater, and storm water permits from the Mississippi Department of Environmental Quality.

Enerkem Inc. has two projects in the works. In November, the DOE issued a Finding of No Significant Impact for the company's proposed 20 MMgy Pontotoc, Miss., MSW-to-ethanol plant. The company expects to start construction in the first half of 2011, with the project built in two phases, 10 MMgy at a time. In addition, construction kicked off in August at the company's 10 MMgy plant in Edmonton, Alberta.

Cellulosic ethanol developer INEOS New Planet Bioenergy, a joint venture between INEOS Bio and New Planet Energy LLC, started work in November, tearing down a 35-year old Ocean Spray grapefruit processing plant that has been closed for five years. The company plans to build an 8 MMgy production facility at the Indian River County, Fla., location to process post-recycled MSW and forestry and agricultural waste. In addition, it will produce 6 megawatts of electricity, of which a third will be sold to the grid, according to David King, president of the joint venture. Demolition of the Ocean Spray facility will be complete in January. British firm AMEC, selected as the engineering, procurement and construction contractor, will start construction in May. "The plant will be mechanically complete in the first quarter of 2012 and starting up the second quarter," he says.

For King it's very exciting to finally see a physical manifestation after years of talk. 2011 may not be the year that many cellulosic ethanol plants start churning out product, he says, but it's certainly shaping up for a busy year of construction, at the INEOS plant and others. "I think there will be a lot of momentum around the industry in terms of getting steel in the ground," he says.

Dirt Work Mississippi-based Century Construction has begun groundwork on the BlueFire Renewables cellulosic ethanol plant site at Fulton, Miss. PHOTO: BLUEFIRE RENEWABLES

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Will 2011 be the Year?

It seems that every time the ethanol industry gains increased federal support, anti-ethanol groups protest. So it was no surprise when a coalition of ethanol opponents filed a lawsuit Nov. 9 with the D.C. Circuit Court of Appeals to challenge the U.S. EPA's partial E15 waiver approval. Led by the Grocery Manufacturers Association, the American Petroleum Institute, the National Chicken Council, the National Council of Chain Restaurants of the National Retail Foundation, the National Meat Association, the National Pork Producers Council, the National Turkey Federation and the Snack Food Association joined forces again, claiming the EPA's E15 approval improperly authorizes an increase in the ethanol content of gasoline. The groups claim the EPA lacks statutory authority to approve the increase and issued its decision prior to the completion of thorough testing.Many of the plaintiffs are significant consumers of corn. The National Turkey Federation said in a disclosure statement accompanying the lawsuit that 70 percent of the cost of producing turkeys is feed, and corn is the single largest ingredient in turkey feed. Therefore, "NTF's members have a direct interest in all legislation, regulation, and litigation that affects the distribution and availability of corn."

Ethanol advances, opposition files lawsuits

Tit for Tat

Nov. 29-November was an interesting study of both the ethanol and gasoline markets, as trends in both markets from the past several months reversed. The ethanol price has dropped nearly 20 cents per gallon, giving up its 15 cent premium on the gasoline market. The RBOB gasoline market gained nearly 20 cents per gallon in November, as it trades at a strong premium to the ethanol futures once again. This reversal comes from not only the corn market fall, but also the redeveloping of commercial and noncommercial buying interest in the energy market. Traders continue to focus on commodities in expectation that the economy will continue to build through the first half of 2011, bringing increased demand for gasoline. This could drive additional ethanol demand, as increased overall usage of gasoline would support increased blending.

Corn prices continued to move in a moderate range over the past several weeks, as concerns of overall global economies have created havoc in the market. In turn, ethanol prices will likely continue to bounce higher and lower-following the corn market. Interest will likely be focused on the noncommercial buying activity in the grain market, rather than any direct movement of overall commercial market needs.

Ethanol, gasoline prices flip flop

Nov. 29-The natural gas market was, as usual, fairly volatile in the year just closed. We started with the highest monthly closing price for the entire year-$5.81/MMBtu. Generally, prices declined throughout the year with a market low of $3.29/MMBtu in November. As the chart shows, there was a strong downward trendline during most of the year. Prices should rebound starting in 2011. Note the positive trendline starting in 2011 and extending three years. The rebound never gets back to January 2010 levels and instead tops out at $5.73/MMBtu in December 2013.

Actual and projected prices reflect the extreme bearish factors dominating the natural gas market. Drilling levels and production numbers continue to be strong even though prices are weak. Industrial demand is far from pre-recession levels with little improvement expected soon. Finally, funding seems to be readily available for production activities with low interest rates and foreign money interest.

Current market prices for 2011-'13 are attractive by historic standards. The projected average for 2011-'13 is $4.92/MMBtu, while the actual average in 2006-'09 was $6.77/MMBtu. It is tempting to layer-in hedges since gas prices now can be locked-in at levels lower than historic prices. Could prices go lower? Our view is they reflect weak fundamentals and when, and if, any of those fundamental factors change, prices will likely rebound. If you are risk averse, defensive hedges may be appropriate. On the other hand, if you are a risk taker, monitor fundamentals and move into the market when and if drilling/production turns negative and/or demand begins to rebound.

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Prices to stay below historic average

Nov. 29-The corn market has been temperamental. Nearby corn futures experienced a high Nov. 9, at $6.05. The market soon collapsed 98.75 cents, touching a low of $5.06¼ Nov. 23. What changed? Multiple factors impacted the market: China's rising food inflation, support for the U.S. dollar, ideas of bigger corn acreage ahead and long liquidation following record long funds.

The November USDA supply/demand saw a further reduction of corn yields to 154.3 bushels per acre. Total supply was lowered 125 million bushels from the previous month. Total demand was reduced by 50 million bushels, even though ethanol demand increased, offsetting bigger reductions in livestock and exports. USDA projects ethanol will consume 4.8 billion bushels of corn in the current marketing year with livestock utilizing 5.3 billion, exports 1.95 billion and other industrial use at 1.38 billion. Total demand is 13.43 billion bushels. This lowers carry-out to a dangerous 827 million bushels, a 6.2 percent carry-out to use ratio. This market cannot afford any hiccups in the next growing season.

The chart illustrates historical corn price changes by month, week and day. Previously, 2007-'08 was the most volatile. The current year has already proven to be more so, with the chart only showing through October. Any increasing demand will have an impact, as will any planting or growing concerns in the next season. The market has discovered where rationing begins-above the $6 mark- keeping traders tense trying to balance U.S. corn supply and demand.

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Current corn market volatility beats 2007-'08

Nov. 29-The gyrations in the corn futures are pulling DDGS prices all over the place. Overall, though, values have gained as a percentage of corn over the past month-even as post-harvest corn basis escalates. We have seen a large increase in swine usage year over year, as vomitoxin is now nearly non-existent. The Chicago container market continues as if there is no end to demand. And, even the California dairy demand is starting to come around-it is still not uniformly profitable, but more optimistic than of late.

The bulk export market is virtually non-existent with a very small amount of business done out of the Gulf-nowhere near last year at this time. The business should come back-vessel freight is getting more reasonable. Last spring's West Coast business, seen in increments of a couple of boats per month, will not be replicated this year unless things pick up in a hurry.

Going forward, corn futures will obviously affect DDGS prices. The Mexico crop, which was much better this year than last, will start to run out in the first quarter of 2011, so we should see exports pick up down there. Although China is not doing as much bulk business, its appetite for high quality corn won't go away, and containers will facilitate movement until bulk business can resume in earnest.

Corn gyrations impact DDGS market

The rise in social media sites has provided employers with the opportunity to learn more about job applicants than ever before. It is an enticing notion to be able to take a sneak peak into an applicant's personal life. But employers must be wary. Using social media such as Facebook, Twitter, LinkedIn or MySpace to screen candidates may be as difficult as navigating through a minefield. While online research offers potential benefits such as easy, convenient and free information regarding a candidate, employers must also be aware of the concurrent risks associated with such research.

Social networking profiles often reveal information about a candidate's protected class-a candidate's age, race, gender, sexual orientation, gender identity, disability, religious beliefs, military status. This protected information may appear in several different forms within a candidate's profile. Consider the following scenario: Your company decides to perform a Web search on each of the finalists for a new position. The company's human resources professional performs the search and finds a picture of one finalist in full costume leading a local gay rights parade. What does the human resources professional do with that particular information? If a candidate who is not hired for the position finds out that the company conducted the search and reviewed the candidate's personal online profile, the company may find itself having to show that it did not rely on improper information when deciding not to hire that particular candidate. When utilizing online resources to research a candidate, employers should review candidates based on their qualifications and not necessarily the information in an online profile.

Practically speaking, many times information found online is more fiction than fact. Moreover, even factual information can be misinterpreted when taken out of context. As a result, using online information creates the following dilemmas: Is the information accurate or relevant to the job opening or does it have any bearing on the candidate's ability to succeed in a given occupation?

In addition, employers should be aware that in certain circumstances, reviewing online profiles could lead to an invasion of privacy claim by the candidate. A fine line exists between a candidate's right to informational privacy and an employer knowing as much as it can about the candidate. Many social media profiles are private and only accessible by "friends" of the candidate. Employers must be careful of the tactics they use to gain access to information on social networks. For example, employers should avoid using someone else's login information or falsifying information to gain access to a candidate's profile.

Employers must first decide whether it is worth the risk to use social media to screen candidates. Employers may want to consider the reasoning/purpose behind using social media in the hiring process. Employers who conduct online research as a part of the hiring process should work with legal counsel to develop and document an internal policy to govern the use of social networks to screen candidates. Such a policy should define the type or specific positions for which online research will be used to assess candidates. In addition, the written policy should create a standardized process for utilizing the online research including defining the point at which human resources may look to online resources. Also, employers may want to specify in the policy what information the employer is looking for through the online research. A written policy that is consistently followed may help mitigate the risks associated with such screening.

Finally, employers may want to consider asking candidates for written consent to use social networking sites as a part of the screening process or at least provide notice to candidates that a background check may be conducted that may include a review of any publicly available social media sites. Employers, however, should avoid snooping into an account that is blocked from public viewing.


Author: Danielle D. Smid
Attorney, BrownWinick
515-242-2476
smid@brownwinick.com

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Social Media Pose Risks as Hiring Tool

For years, the conversation about ethanol has stayed among friends and supporters-from inside the Corn Belt to inside the Beltway. The core of Growth Energy's mission is to expand that conversation and engage those Americans who know little, nothing, or worse, are misinformed about ethanol. By engaging these Americans with an aggressive campaign to promote the facts, we can expand public support for domestic ethanol. Growth Energy did it with our 2010 national TV ad campaign, and we are doing it again in a new partnership announced in early December with NASCAR, America's most popular sport and one of the most effective marketing operations in the country. In October, NASCAR announced that it would switch to E15 for the 2011 season-a key validation of E15 as a fuel for all Americans just as the U.S. EPA is nearing its final decision on Growth Energy's Clean Jobs Waiver to bring E15 to all Americans. When Sunoco Green E15 debuts in NASCAR this year with the first rev of engines in Daytona Beach, Fla., it will be a reminder that with American ethanol, the fuel of the future is here today. The transition to Sunoco Green E15 will also take NASCAR's environmental commitment to the next level. American ethanol, a renewable source of cleaner burning energy grown right here in America, helps create new green jobs and a renewed sense of pride for the American worker, while helping achieve greater energy independence for our country. This partnership with NASCAR means that American ethanol will be able to talk to people on both coasts and the South, where the ethanol story has not yet been heard. Through NASCAR's loyal fan base-second only to national football's-we will be able to broadcast our story to a brand new audience. Through our partnership with NASCAR, we can tell America that domestic ethanol is the commercially viable alternative we have to oil today. It is not a "someday" fuel, it is here today. And ethanol is made right here in America by our farmers and our workers. We create U.S. jobs, instead of sending them overseas. Domestic ethanol is the key to making our nation energy independent. Every dollar we spend on foreign oil sends $1.55 to other economies overseas. It's time we keep that money right here at home, and put it to work in American towns and cities, building our economy and putting our workers back on the job. Ultimately, we expect that NASCAR's adoption of E15 will encourage all American motorists to embrace E15 and other higher blends. E15 is a high octane fuel that provides quality performance without harming engines. At NASCAR's opening race, the sport's iconic green flag will feature the American Ethanol brand. As Agriculture Secretary Tom Vilsack recently told the press: "If E15 is good enough for Jimmie Johnson, then it's good enough for me." Author: Tom Buis CEO, Growth Energy (202)545-4000 tbuis@growthenergy.org

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A New Partnership to Promote Domestic Ethanol

This issue of Ethanol Producer Magazine focuses on two aspects of ethanol plants-boardsmanship and community outreach. For our cover story, Associate Editor Holly Jessen spoke to a number of ethanol plant board members, along with industry professionals who advise them, to learn more about effective boardsmanship. Jessen's story on community outreach-"Building Goodwill"-includes a nugget of wisdom: If you get the kids involved, you get the parents, too. Many ethanol producers welcome students of all ages for tours of their plants. Some plants get high school students involved in laboratory internships and others give students in science classes a chance to see how science is applied in industry. Not only will the students learn about ethanol, but some will become future employees. Although it may take some time away from the job on the part of plant personnel, such efforts are seen as good ways to give back to the community and build support for ethanol. With all the distortions and negative press that ethanol sees, every effort needs to be made to help people better understand how the ethanol process works and how it helps our rural communities and the nation.

Associate Editor Kris Bevill rounds out our feature section this month, writing about the frustrations among those pursuing U.S. DOE loan guarantees. Ideas are emerging with a goal of getting the bogged-down program rolling. Some would have predicted the problems. I remember when covering the development of the most recent Farm Bill, a congressman suggested it would be better for the USDA to handle loan guarantees because it has so much experience in administering such programs. He suggested the DOE focus its efforts on funding and coordinating research, an area of its demonstrated expertise. Obviously, his ideas weren't incorporated into the Farm Bill. We are seeing USDA trying to maximize what programs it can, however, to support biofuels. Here's hoping the agency's program to cost-share the installation of 10,000 blender pumps over the next five years is a rousing success.

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Producers Seek Solid Boardsmanship, Community Goodwill

There can be no doubt that 2010 will go down as a historic year. In Washington, the year was marked by the passage of landmark legislation in the form of health care reform, followed by the inevitable political wrangling that goes along with such legislation no matter who is in charge.

We also saw a historic election in 2010, watching a wave of voters-angry over a struggling economy, high unemployment and a seemingly out-of-touch Congress-sweep Republicans into power in the House of Representatives.

For the ethanol industry, 2010 was yet another historic year. Ethanol production approached 13 billion gallons. Use of fuel ethanol soared well over 12 billion gallons. And, the U.S. EPA took the first, albeit baby, step to allowing for more use of ethanol in gasoline.

As I write this column, important issues still remain unresolved. By the time you read this, we will know if Congress acted to extend important tax incentives for ethanol and other biofuels. We may even have a sense of whether EPA is going to expand the use of E15 to more vehicles. These issues will be addressed in subsequent columns.

As is tradition, this column is dedicated to a tongue-in-cheek look at the year that was, and a lighthearted peek into the year that is to come. Without further ado, the 2011 RFA Ins and Outs list.

Out In
Chris Standlee Chuck Woodside
1 Massachusetts Ave. NW 425 Third St. SW
Speaker Pelosi Speaker Boehner
E-85 pump toppers E-15 pump labels
FFVs Flex Fuel Hybrids
Federal fleet Alt Fuel Waivers Blend Your Own blender pumps
Ethanol imports Ethanol exports (yes, Brazil, even to you)
Feed wall Distillers grains exports
Legislative gridlock Triangulation
Carbon cap and trade EPA carbon regulation
Legislative mark-ups Oversight hearings
Nonfood feedstocks Advanced biofuels
VEETC extension VEETC reform
Al Gore promoting ethanol Al Gore bashing ethanol
Verenium BP Biofuels
PR Newswire Twitter
Ryan Hunter-Reay Rusty Wallace
Corn oil extraction Biobutanol conversion
DOE biofuel grants USDA BCAP
Rahm Emanuel Pete Rouse
Underwriters Laboratories Blender pumps
GMA Unitarian Universalist Ministry for Earth
250 Ton Rule GHG Tailoring Rule
CARB's carbon intensity value Purdue's revised ILUC calculations
California LCFS with ILUC Oregon LCFS without ILUC
E15 catalyst durability tests E15 health effects tests
DOE E15 tests on 2007 Vehicles Ricardo Engineering assessment on all cars
A Sweeter Alternative E-Xchange
World Bank blaming ethanol World Bank exonerating ethanol
Loan guarantees Refundable ITC for cellulose ethanol
Massive oil spills RFA safety committee
Competing associations Ethanol Alliance

Author: Bob Dinneen
President and CEO of the
Renewable Fuels Association
(202) 289-3835

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2011 Ins and Outs

In Europe, much more than in the United States, green (but not just) non-governmental organizations (NGOs) are engaged loudly and aggressively in the biofuel debate. For several years now, a number of NGOs have repeatedly called for stopping governmental support of biofuels. Very vocal during the food versus fuel debate two years ago, they picked up the indirect land use change (ILUC) topic immediately as their new banner to wave.

A high degree of professionalism characterizes the way NGOs operate in the public domain: glossy anti-biofuel publications, many public events and scientific studies. The kind and frequency of actions also reveal that a lot of funding is behind today's NGOs. The innocent spectator seeing how committed these groups appear to be in fighting biofuel policies could come to the conclusion that they are sincere in their beliefs and goals. Recent academic work provides some interesting insight into what actually motivates NGOs in the biofuel debate.

Recently two researchers of the UK University of Essex published the results of their research titled "Battles over Biofuels in Europe: NGOs and the Politics of Markets" by Sarah Pilgrim and Mark Harvey. Their most significant conclusion is that the development of NGO policy on biofuels has been driven more by narrow political opportunities for influence than by broader and more coherent policy responses to global climate change or economic development, or indeed rigorous assessment of the scientific evidence.

The mere fact that governments adopted detailed and tailored policies and programs on biofuels including mandates, targets and sustainability criteria show the biofuel market has been politicized. In this context it is irrelevant whether the driver for government involvement is decarbonising transport, as in Europe, or decreasing dependency on oil, as in Brazil and the U.S. Because the market became so political, NGOs saw an easy opportunity to "engage and affect the process of market information." Europe became the most vulnerable region given the importance that is given to greenhouse gas emission savings and the scientific controversies over the level of saving that can be achieved by biofuels. NGOs used this controversy to improve their profile and visibility.

The researchers included some revealing quotes from NGOs in their work such as this one that makes clear how "science" is used by NGOs: "I think the actual premise of Searchinger is sound… Now I don't know the ins and outs of his model. I just have not had the capacity, and I suspect that of a lot of NGOs-we don't have the capacity to spend a lot of time pulling apart papers like that."

The article is a must for all regulators and politicians. It would increase their savviness on how to deal with the claims made by NGOs on biofuel policy. Too many EU regulators and politicians have been very politically correct when they were, and still are, confronted by the NGO view on biofuel policy. The mere fact that one is dealing with an NGO doesn't mean its view needs to be taken on-board without hesitation. The work of Pilgrim and Harvey has clearly demonstrated that NGOs and their claims against biofuels deserve caution.

A very recent public opinion survey also came with remarkable results on the public's view on biofuels. Part of a wider survey on biotechnology, two questions on biofuels delivered evidence that a large majority of Europeans (72 percent) believe biofuels should be encouraged. When asked specifically about sustainable biofuels, the survey shows that Europeans are even more supportive-83 percent believe sustainable biofuels should be encouraged. What better evidence can we have to demonstrate that public support for biofuels does exist-contrary to what many NGOs want us to believe? It is a strong message that politicians cannot ignore if they are operating in the political market of biofuels.


Author: Robert Vierhout
Secretary-general, ePURE
Vierhout@epure.org

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Biofuels: A Market of Political Opportunities

Good corn grading procedures in ethanol plants will continue to be important as 2009 grain is blended into the 2010 crop. The 2009 corn crop started with field molds (normally the source of mycotoxins), continued with aggressive high-moisture-storage fungi and finished last summer with low-moisture blue eye infections. Whether all these types of damage affect fermentation equally is not known. Fermentation problems cause variability in dried distillers grains with solubles (DDGS) as well as lost ethanol. All types of mold discoloration count equally in the total damage (TD) value.

TD levels normally never reach the maximum 5 percent level allowed in No.2 corn grades, but we'll likely see high TD this year with carryover 2009 corn being blended into 2010 corn harvested with low moisture and little mold. Blending in truckload lots is difficult, and uniformity is hard to maintain, yet there is a clear incentive to push the limits. Buyers perceived as lax in grading will likely receive higher levels. Also, studies have shown the natural tendency of in-house graders is to progressively underestimate higher TD levels.

The other major corn grade factors-test weight, moisture and broken corn/foreign material (BCFM)-have less impact on ethanol production. Tests in 2009 showed low test weight had no significant impact on yield, but was associated with more spoilage in storage. Low test weight corn is often lower in protein, which may increase ethanol yield. BCFM is mainly broken corn. Moisture did not diminish yields on a dry matter basis, though it can create storage problems.

Mycotoxins pass through the ethanol process to be concentrated three-fold in DDGS, creating a feed safety issue. In 2009, the cool, wet weather fungi were prevalent and vomitoxin, zearalenone and fumonisin were the mycotoxins found. In hot dry conditions, aflatoxin is more likely. Strip testing is accurate and takes about 10 minutes at a cost of about $10 plus labor. Testing every load is time and cost prohibitive. Test composite samples of inbound corn once or twice per day to spot potential variation in DDGS that would impact buyers. If time-weighted averages show spikes, the individual corn suppliers can be targeted for additional evaluation.

Ethanol yield can be estimated to +/- 0.04 gallons per bushel from protein, oil and density measured with a near infrared (NIR) analyzer. Oil content varies much less than protein. Protein is by far the most significant composition factor in corn. For each 1 percent increase in corn protein, ethanol yield drops approximately 0.06 -0.07 gallons per bushel and DDGS protein increases approximately 3 percent on a dry basis. Corn protein varies from 8-10.5 percent and yearly averages can move 0.25-0.5 percent. Uniformity is more important than capturing differences across loads. Protein variation in DDGS of 1-3 percent is more than feed rations account for, but the order of unloading the DDGS barn can help balance the variation.

Testing corn composition is best done by a transmission-based NIR unit. These are not the reflectance units useful for testing DDGS, slurry products or fermentation. The fixed cost of a transmission NIR will be about $7,000 to $9,000 per year, plus $1-$2 per sample in operating costs.

To upgrade inbound grain evaluation at your plant, move forward in steps rather than making large changes at once: Some thoughts on how to proceed:

1. Have one or two of your employees become well trained. Validate their skills with unannounced comparisons with official grades, in a statistically valid manner. Use them to pass these skills to others through random sample checks.

2. Combine a representative, mechanically divided sample over a day or half day and have your best graders check the composites, including mycotoxin values if there is a concern. Compare to individual load grading.

3. Work with scale house employees to recognize poor corn. Time is best spent on these samples rather than trying to fully grade all. This will also introduce unpredictability in grading frequency, which is helpful in maintaining consistency from sellers.

4. Pull samples just ahead of the hammermill. Record the grade, composition and mycotoxin levels and relate the corn quality measures to individual fermenter performance. Keep time-dated grade records on incoming grain and track its movement through the plant.

5. If you are seeing corn quality impacts and your staff does not have the specialized skills needed, or time to build grading skills, consider third party inspection.

Corn evaluation is part of total process control and the collection and analysis of data relating quality to plant performance is critical to continuous improvement.

Author: Charles R. Hurburgh, Jr.
Professor in Charge, Iowa Grain Quality Initiative
Iowa State University
(515) 294-8629
tatry@iastate.edu

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Prevent Problems by Good Corn Grading

Does America want a robust renewable fuels industry or not? Government seems to be talking out of both sides of its mouth. The flip-flop between comments from the White House and the actions of the U.S. EPA, suggests a bit of a dichotomy.

The White House seems to be committed to the development of a healthy biofuels program. President Obama said, "Now, I happen to believe that we should pass a comprehensive energy and climate bill. It will make clean energy the profitable kind of energy, and the decision by other nations to do this is already giving their businesses a leg up on developing clean energy jobs and technologies. But even if you disagree on the threat posed by climate change, investing in clean energy jobs and businesses is still the right thing to do for our economy. Reducing our dependence on foreign oil is still the right thing to do for our security. We can't afford to spin our wheels while the rest of the world speeds ahead."

At the same time, the EPA took far longer than necessary to implement an E15 blend, even in light of overwhelming research at its disposal, and then confounded the matter by only doing so for 2007 vehicles and beyond. The guidelines for the renewable fuel standard do not allow for growth in the grain-to-ethanol side of the industry and the bar is set so low for cellulose that the motivation to develop and commercialize the technology by private industry is almost non-existent.

Another example of biofuel dichotomies in government is the debate over easing or even lifting import tariffs for ethanol. Again, is it the objective of America to have a robust domestic biofuels industry? After all of the rhetoric about free trade, ethanol being a global commodity, and price equalization, it comes down to one simple fact. Opening the doors to a flood of imported ethanol will halt the development of the domestic industry.

There simply are no economic, environmental or energy security reasons why the United States should even consider doing that. The current policy is working well, it allows for imports but at a rate that still encourages domestic production. Meeting the ethanol needs of America with ethanol imported from Brazil is absolutely counter-productive to the efforts to build a domestic industry over the past 30 years.

What happens, for example, when Brazil has a marginal or small sugarcane crop and ethanol production is greatly reduced? The first cut will be exports, which means the United States has to cut back because we have not ramped up our own domestic production because of imports. Imports should be viewed as a supplement to our own production, not part of an overall strategic plan.

If America is going to develop a biofuels industry that helps meet its energy security, economic and environmental objectives, then everyone in government must be singing in unison. A church choir may all have the same hymnal, but if they are singing different songs, it's a bit confusing to the congregation.

That's the way I see it.

Author: Mike Bryan
Chairman, BBI International
mbryan@bbiinternational.com

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Replace Dichotomy with Unified Policy

Some strong ethanol advocates lost in the November election, including Earl Pomeroy and Stephanie Herseth Sandlin, acknowledges Bob Dinneen, president of the Renewable Fuels Association. Many more won, however, including Sen. Chuck Grassley, Sen. Mark Kirk and Rep. John Shimkus. "And, more importantly, for the most part, those defeated were replaced with equally strong advocates for value-added agriculture and ethanol," Dinneen says.

The key, says Tom Buis, CEO of Growth Energy, is educating new legislators about ethanol. "We have to go educate people about the issue and the facts," he says. "We think if the facts get out there, we win."

Asked about a Republican-led House, the RFA and Growth Energy give the same answer. Ethanol is, and always has been, a bipartisan issue. It doesn't matter which party is in power. Instead, ethanol is typically a regional issue. People from the Midwest typically understand the economic benefits of ethanol better than those from other areas, Buis says.

What is clear, Dinneen says, is that there will be a focus on reducing taxes and reigning in spending. There needs to be a debate about how to foster continued growth for the ethanol industry, attract funding for cellulosic ethanol and help commercialize other advanced biofuel technologies, such as algae and biobutanol. "This conversation ought to include whether and how we address tax policy for all fuels, including petroleum," Dinneen says. "The ethanol industry, and the domestic biofuel industry as a whole, ought not be asked to unilaterally disarm while extensive government support continues for petroleum companies."

It will be a challenging climate for ethanol but also one of opportunity. "If we keep the focus on jobs; if we make the connection between increased ethanol use and reduced energy imports and a growing economy; if we demonstrate how ethanol production and use saves taxpayer dollars by increasing tax revenues and reducing farm program costs; then the 112th Congress and the American public will continue to support our industry and policies to assure its continued growth and evolution," Dinneen says.

With the House shakeup, Rep. Nancy Pelosi will become minority leader and Rep. John Boehner will become Speaker of the House. In terms of support for ethanol, neither Dinneen nor Buis feel it will be much of a change. Boehner hails from Ohio and has been supportive of renewable fuels in the past. Rep. Collin Peterson will become the ranking minority member on the House Agriculture Committee and Rep. Frank Lucas will step into his shoes as ranking majority member. Lucas is from Oklahoma and has a degree in agricultural economics. "I don't think you'll see a lot of difference between him and Collin Peterson," Buis says.

In early December, during the lame duck session, it was still unknown who would lead the House Energy and Commerce Committee. Three or four candidates were vying for the spot, Buis said, some of whom are from the Midwest and some who aren't.
The Senate retained its Democratic majority. Sen. Debbie Stabenow of Michigan will become the next chairperson of the Senate Agriculture Committee, replacing Blanche Lincoln of Arkansas, who lost her bid for re-election. Stabenow is a long-time supporter of biofuels. "Agriculture is critical to Michigan's economy, employing a quarter of our workforce," Stabenow says. "Not only does agriculture create jobs and feed our families across America, but it is also helping us develop new fuels and energy sources."

House Leader Rep. John Boehner is the new Speaker of the U.S. House of Representatives in the 112th Congress. 

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Senate Supporter Sen. Debbie Stabenow, new chairperson of the Senate Agriculture Committee, is a supporter of biofuels.

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Friend to Farmers Rep. Frank Lucas, majority leader of the House ag committee, speaks with Future Farmers of America members in this 2009 photo. 

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How will the new leadership impact ethanol policies?

Political Winds

Executives at all 27 plants in the Poet LLC family have been challenged to pursue blender pump installations in their respective areas. Poet Biorefining-Caro, a 53 MMgy plant located about two hours north of Detroit, recently contributed $50,000 toward blender pump installations at stations owned by Cooperative Elevator Co. and Ignash Petroleum Inc.

The plant's general manager, Dave Gloer, says Poet CEO Jeff Broin issued the challenge to pursue blender pumps about two years ago. "It's taken a long time to make this happen," he says. "We worked on this project for more than a year. Very few ethanol plants have been successful in getting blender pumps installed in their areas."

In exchange for the $25,000 per-pump contribution, Cooperative Elevator and Ignash have agreed to purchase ethanol directly from the Caro plant. The cooperative began purchasing E100 from the plant earlier this year and hopes to increase its demand to more than 10,000 gallons per month, says Tim Sielaff, vice president of petroleum for the co-op. Ignash will purchase E85 and has a goal of selling more than 800 gallons of E85 per day at its new site.

Michigan producer supports 2 installations

Paying for Pumps

Many ethanol producers have heard the cry of "not in my backyard" (NIMBY). Fortunately, naysayers aren't the only ones who speak up.

Powers Energy One of Indiana, a 42 MMgy garbage-to-ethanol plant proposed for Lake County, Ind., has seen its share of controversy in the past year. After three untroubled years in development, the project was attacked in the local media with a campaign of rumors and lies, says Gerry Scheub, Lake County commissioner. The ringleaders were some of the media itself, a small group of politicians and an area landfill, which is set to lose business should the plant become reality.

At a public meeting in November the ethanol plant's supporters attacked back. Of about 400 people attending the meeting, at least 380 were supporters, Scheub tells EPM. The supporters cheered before the meeting started and some carried signs that read "Garbage to Ethanol vote YES." Some were from Schneider, Ind.,-the smallest town in the county with 300 residents-where the $254 million ethanol plant is to be built. Before it was selected as the location for the ethanol plant, the town held a public meeting, during which an "overwhelming majority" signed a petition in favor of the ethanol plant, says Richard Wright, a member of the town and Lake County Solid Waste Management District boards.

It was four years ago when Scheub first met Earl Powers, chairman and CEO of Powers Energy of America Inc. Lake County was looking for a 20-year waste stream solution and Scheub was, and is, very enthusiastic about the idea of converting waste into ethanol, or, as he puts it, turning garbage into a commodity. The county commissioner would like to do something about this country's addiction to foreign oil, which has contributed to the national debt as well as resulting in the deaths of many U.S. soldiers. "I think that's wrong and I would love to be somebody who is reversing that," he says.

Job creation is behind much of the support from Lake County residents. Once completed, the plant will employ 250 people for an average of $18 to $20 an hour, Scheub says. Constructing the plant will bring in another 500 workers. It would also solve a waste management issue for Lake County. Current tipping rates for garbage disposal are $38 to $43 a ton, with rates expected to rise to $49 a ton in 20 years, says Jeff Langbehn, executive director of the solid waste district. Tipping fees at Powers Energy One start at $17.50 a ton and go down to $17.25 once input exceeds 2,000 tons of municipal solid waste (MSW) daily. The plant will turn garbage into ethanol, recycle metal and glass leaving a small percentage of MSW to be landfilled.

On top of all that, the plant will generate income for local governments. Schneider, the host community, will get 3 cents for every gallon of ethanol produced at the plant, says Clifford Duggan, attorney for the solid waste district. For every ton of MSW processed at the plant, the solid waste district will receive $2.50, of which 90 percent will be distributed to cities in the district based on the number of households per community. Finally, the county will receive taxes from Powers Energy One. "Not bad, huh?" Scheub asks.

The project underwent serious scrutiny before getting this far, Langbehn tells EPM. After review by the solid waste district board, it was turned over to an engineering firm, a university and an accounting firm for examination. Langbehn himself has seen the technology at work during five visits to the INEOS Bio pilot plant. "There has been an enormous amount of study to see if this thing does what they say it does," he says.

Alas, those who have set themselves against the project aren't interested in hearing about the positives. "They're just interested in being negative," Scheub says.

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Community rallies around Powers Energy One

NIMBY reversed

California's innovative Ethanol Producer Incentive Program (CEPIP) appears to be having an almost immediate positive impact on ethanol producers in the state. The program, which began accepting applicants last summer, offers payments to producers when ethanol crush spreads are low and requires producers to repay those funds when spreads are high. Producers will be able to receive an incentive of up to 25 cents per gallon of ethanol produced, capped at $3 million per year per facility, during months when the ethanol crush spread is less than 55 cents per gallon. During months that the crush spread is greater than $1 per gallon, participating producers will be required to pay back incentives at a rate of up to 20 cents per gallon of ethanol produced.

In order to qualify for the program, ethanol plants must be located in California, have an operating capacity of at least 10 MMgy and be actively producing ethanol. Initially, only Calgren Renewable Fuels LLC was pegged to participate in the program. Other producers had applied for and been approved to participate in the program, but Calgren was the only facility operating. That has recently changed, due in part to the incentives offered by the state.

Pacific Ethanol Inc. received program participation approval for its 60 MMgy plant in Stockton and its 40 MMgy plant in Madera while the plants were still idle. Since receiving the incentive program approval, the company has been able to acquire the financing necessary in order to restart both facilities. Paul Koehler, the company's vice president, confirmed that the program played a role in Pacific Ethanol's ability to restart production. "The CEPIP program was a definite positive factor to the lenders and owners in the decision to restart Stockton as it provides assurance of payments when corn-to-ethanol spreads are low," he says. "The California Ethanol Producer Incentive and the California Low Carbon Fuel Standard demonstrate to lenders and investors that the State of California is serious about building a renewable transportation fuel production industry." In late-November, Pacific Ethanol said it planned to restart the Stockton facility within the next month. A restart at the Madera plant was still in the works and would occur "as market conditions permit," according to Koehler.

In early November, AE Biofuels Inc. announced that its subsidiary, AE Advanced Fuels Keyes Inc. was being retrofitted and prepared to begin producing in the first quarter of 2011. The 55 MMgy plant has been idle since 2009. Once operational, the facility will qualify to begin receiving payments through CEPIP as dictated by the corn-to-ethanol spreads. Price assurance offered through the program also played a role in AE Biofuels acquiring the $4.5 million needed to repair the Keyes facility, according to Andy Foster, president and chief operating officer of the company's advanced biofuels division.

The incentive program's official start date could not be determined until the state passed its budget. Legislators were finally able to do so in October and it is anticipated that the program will be officially rolled out by the end of January.

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Unique incentives inspire investments to restart facilities

California Rising

Rusty Wallace, left, and Carl Edwards, former champions with National Association for Stock Car Auto Racing (NASCAR), unveil the American Ethanol show car Dec. 2 in Las Vegas. NASCAR has a 6-year agreement with American Ethanol to use E15 in its races. The group is led by Growth Energy and includes nearly 100 different entities.

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Green Racing

Sweet sorghum as an advanced biofuel feedstock will get a boost from a new collaboration of the National Sorghum Producers and the Sweet Sorghum Ethanol Association. With NSP in the lead role and SSEA providing organizational support, the collaboration committee will develop and implement a legislative advocacy program. NSP has already been working with the U.S. EPA on certifying sweet sorghum as an advanced biofuel feedstock through the renewable fuel standard petition process. "Elevating awareness of sweet sorghum's vast potential as a biofuel feedstock is a precondition to building a sweet sorghum ethanol industry," says Steve Vanechanos, chairman of EPEC Biofuels Holdings Inc. and chairman of the joint collaboration committee

In Europe, the European Bioethanol Fuel Association (eBIO) and the older, France-based European Union of Ethanol Producers have merged to form the Ethanol Producers Union for Renewable Energy (ePURE), representing 80 percent of the installed production capacity in Europe. "The need to merge was obvious," says Lutz Guderjahn, COO of CropEnergies AG and vice president of ePURE. "Today's political agenda is simply too vast to be handed by companies standing on their own."

In the biodiesel industry, a second group has been formed to represent the industry in addition to the well-established National Biodiesel Board. A group of biodiesel advocates formed the Global Biofuels Alliance Inc. as a new nonprofit trade association for small to mid-size biofuel producers, marketers, distributors and associates. The alliance will first focus on reinstating and extending the Federal Biodiesel Blenders Tax Credit, adding that it expects that priorities will eventually shift from "the traditional tax credit to other policies." The group was formed because there was a need for a voice for small- and medium- sized companies, the announcement said.

Combine and collaborate

Whether sponsoring educational programs with area schools, hosting plant tours or giving to charities and organizations, directors and employees at ethanol plants work hard to educate their neighbors and positively impact their communities. By so doing, they spread a positive message about ethanol-one person at a time.
Mike Jerke, chairman of the Renewable Fuels Foundation, which works to meet the education, research and strategic planning needs of the industry, believes most ethanol plants are active in their communities but emphasizes that role shouldn't be taken lightly. "It really is up to us producers," he says.
Jerke is general manager of Chippewa Valley Ethanol Co. LLLP in Benson, Minn., one example among many of an ethanol plant active in its community. Ethanol plant personnel can get involved in their communities by partnering with local schools or even by speaking to area clubs. And, although it would be nice to think that the people who live near ethanol plants understand how the industry benefits the economy and environment, that is not always the case. "We can't take that for granted," Jerke says. "The fact is, there's a lot of misinformation out there."
From the moment he was hired, Mike Erhart, CEO of Prairie Horizon Agri-Energy LLC, was told by board members that community involvement was a priority. It's a mandate he and staff at the ethanol plant are glad to carry out. The plant is, after all, very much a part of Phillipsburg, Kan. It purchases grain from area corn farmers and uses the roads, and the children of employees are enrolled in area schools. "I think it's extremely important that we support them," he says. "If all we do is take, that's just an Ebenezer Scrooge approach."
In Milton, Wis., United Ethanol makes outreach a priority as well. It's important to help people understand the benefits an ethanol plant can bring a rural area and the country as a whole, says Alan Jentz, vice president of grain operations and risk management.
Teach 'em Young
Many ethanol plants focus on students, from elementary on up to college. For example, Poet LLC recently partnered with the Education Resources Center of South Dakota at Dakota State University to add information about the environment and ethanol to existing curriculum. South Dakota history is mandatory learning for fourth grade students, according to Autumn Bates, marketing manager for Poet. A program called South Dakota Road trip, a 13-week virtual trip around the state, is available as a voluntary supplement to the history course. Poet worked with DSU to add several stops to the existing program, she says.
This year the trip will include 22 stops, including one at the Poet Research Center in Scotland, S.D. In addition, Poet helped add information about hydropower, wind energy, energy conservation and the environment. "South Dakota is a state that has huge renewable energy potential and has been working for years to become a net energy exporter," Bates says. "So we feel that ethanol and other sources of renewable energy are a big part of our state's history and future."
Last year, 4,200 South Dakota youngsters participated in the road trip, which starts in January and ends in April. This year the hope is that number will increase to 5,000. "We are well on our way already," Bates adds.
At the end of the classes, Poet will give each student a tree seedling to plant in honor of Arbor Day. This program started last year, Bates says, with fifth graders in the areas around Poet plants across the country planting trees. Tree dispersal this year will be expanded to include the road trip students in South Dakota as well as all fourth graders near Poet plants in other states. "So it will be a big number, a lot of trees being planted," she says.
The RFF, through a partnership with the Future Farmers of America, has created a curriculum on ethanol for high school and college students. Free to educators, it features six units of curriculum in all, which explain what ethanol is, the production process and the impacts the industry has on agriculture, the environment and the economy. Ethanol processes and career opportunities are covered in the renewable fuels sector.
EPM found several examples of individual ethanol plants working directly with their local schools. For more than a year, CVEC has partnered with Benson High School on a renewable energy course to be repeated yearly. The school decided that with an ethanol plant in town, it would use grant funds to teach students about ethanol production. CVEC's lab manager helped the teacher decide what equipment should be purchased and even helped teach the class. In addition to small-scale ethanol production, the students also learned about fuel cells, wind energy and solar energy.
Out of that class, two students completed internships at CVEC, working in the lab for an hour a day during school hours. After the internships were completed, the students were hired to do maintenance at the plant over the summer, Jerke says. Both boys have indicated an interest in studying renewable energy at the college level.
The Poet Biorefining plant in Chancellor, S.D., focuses most of its outreach efforts on children. Adults can often be set in their ways so it's a good place to start changing the attitudes of the next generation. "They're very open minded and willing to listen," says Rick Serie, general manager. The plant stays busy with visits from area schools throughout the year. Lennox, S.D., second graders in a Business Buddies program come to the plant for a tour each year. A Sioux Falls, S.D., environmental class of high school upperclassmen also tours each year to learn how to produce ethanol.
As big supporters of Future Farmers of America, plant employees were glad to work with student members as they prepared a presentation on the pros and cons of E15. The students gave their presentation to the plant's management team in preparation for their trip to a state competition. Several employees are also involved in an annual pheasant hunting event for children, Serie says. In honor of former board member John Ludens, who died of pancreatic cancer, the plant holds an annual golf tournament. The proceeds are given as scholarships to the children and grandchildren of members planning to pursue a career in agriculture or ethanol. At the seventh tournament this year nearly $8,000 was distributed, Serie says. To be considered, a student must write a paper and give a presentation. "We put them through quite an extensive interview process," he says.
The Chancellor plant isn't the only one with a scholarship program for students entering agriculture-related careers. United Ethanol started its own scholarship program in 2010, joining many other ethanol plants that have similar programs.
Children are a big target audience for Prairie Horizon Agri-Energy, too. "Normally if you get the kids interested you get the parents interested as well," Erhart says. He recalls one student whose science fair fermentation project won the state competition and was presented at the national competition. To do the project, he came to the plant for help in learning about fermentation. Lab employees helped him measure ethanol yield using different yeasts without requiring expensive equipment, Erhart says. The student measured output of CO2 with a balloon and by measuring the circumference of the balloon, calculated the fermentation rate. Although plant employees helped, they didn't do the project for him. "We kind of pointed him in the right direction," he says.
Other students have come out to the plant to interview employees and write papers on topics such as food versus fuel. Erhart also went to the local high school to speak to students, not about fuel, but on how to fill out job applications and do well in an interview, something he knows a bit about. "We interview hundreds of people," he says.
Community Outreach 
But outreach isn't just about teaching youth about ethanol. Sometimes it's about being out there, flipping burgers at a fundraiser, contributing financially to a good cause or joining the local chamber, Erhart says. That kind of community involvement shows the plant cares about the community.
That's why Prairie Horizon sponsors the second largest rodeo in Kansas. Among the many activities the plant is involved in at the rodeo, it also raises funds for and awareness of breast cancer. During the "Tough enough to wear paint" event, the company gave $1 for every person who came to the rodeo wearing paint, Erhart says. They also passed a hat in the stands for contributions from the fans. All in all, more than $8,000 was raised.
The plant is also a financial supporter of the Court Appointed Special Advocate Association. In a related effort to help children, plant employees volunteer with the Big Brother, Big Sister program, and once raised several thousand dollars in a bowling team showdown with another local company. "Basically we're suckers for kids," Erhart says.
United Ethanol often offers plant tours including one this spring when the six finalists of the 2010 Alice in Dairyland contest visited. United Ethanol has hosted foreign visitors, too, including a group from a French cooperative and agricultural officials from Brazil. In addition, the company supports local organizations, such as the food pantry, YMCA, law enforcement and fire department.
Author: Holly Jessen Associate Editor of Ethanol Producer Magazine
(701) 738-4946
hjessen@bbiinternational.com

Beautification Fifth graders in Sioux Falls, S.D., plant trees on their school grounds that were donated by Poet LLC, in honor of Arbor Day.

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Guiding Tours Visitors from a French cooperative tour United Ethanol. Photo: UNITED ETHANOL 

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Sponsoring Teams Prairie Horizon sponsors this girls softball team, which rode in a local parade promoting the game as well as ethanol. Photo: PRAIRIE HORIZON 

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Ethanol producers are doing good things in their communities.

Building Goodwill

My first exposure to the business of corn came 15 years ago at Lehigh University, where I played on the varsity soccer team. During our preseason workouts, we would go on hour-long runs through the many cornfields of Bethlehem, Pa. Fast-forward to the present, and those corn fields I trudged through are now the main focus of my everyday life. When I think back to my days in college I realize that there are many parallels between running through the cornfields and managing the ethanol industry today: endurance through difficult conditions, adapting to one's surroundings, and the rewards of hard work.

Over the past four years, the industry has been bombarded by adverse publicity, wild price swings, and activists questioning our very existence. Politicians and citizens alike had spirited political debates over the merits of using corn for food or fuel when prices rose to $7 a bushel. Gasoline prices traded a dollar below ethanol, decreasing discretionary blending. A few producers faced cash flow problems, yet demand continued to increase. Despite all these growing pains, the industry has endured and is showing signs of prosperity ahead.

One place where the industry has shown signs of progress is in the growth of financial instruments to service its practitioners. Four years ago, ethanol futures only had 2,000 lots total open interest, and financially settled ethanol swaps were not yet cleared on an exchange. Only banks and companies large enough to have an ISDA agreement could trade ethanol swaps. The International Swaps and Derivatives Association Inc. has created an ISDA master agreement which sets guidelines for privately negotiated over-the-counter (OTC) swaps.

In such a short time, much has changed. Today, ethanol futures volume has increased to more than 10,000 lots of open interest. Chicago Board of Trade ethanol swaps have over 50,000 lots of open interest and are now clearable through NYMEX Clearport. This makes trading financially settled ethanol swaps available to anyone who has a futures trading account and takes away the counterparty risk of nonpayment associated with ISDAs.

Due to the volatility of commodity prices, hedging by producers is necessary, prudent and vital to their existence. For ethanol producers, this means hedging the price of inputs (corn), costs (energy) and outputs (ethanol). Just a few years back, producers could only easily hedge their inputs and costs, but not their output.

In addition to hedging, the most crucial lesson learned over the past four years is the importance of managing cash flow. When buying inputs and hedging outputs in a rising market, producers face a double drain on their cash. They buy corn and at the same time make margin calls to support an ethanol hedge. In this case, one needs enough cash to maintain this double drain until the final product is sold and income is received.

While hedging sounds simple in theory, some ethanol companies have not done the best job in streamlining their hedging activities. Different departments do not always communicate with each other and as a result a company can over hedge when they could just trade internally. Hedging managers need to start looking at the company's overall exposure and not just individual department risks.

Part of the ethanol industry's current success is due to its ability to adapt to the current financial environment. The greater financial system is still based on trust that a counterparty will deliver, but these days one cannot be too sure. As such, in the past year, ISDAs have lost their appeal. No longer will companies accept being exposed to counterparty risk when it is unnecessary and the majority of OTC ethanol products are cleared through exchanges. Although ethanol futures volume has increased over the years, the majority of ethanol trading still happens in the OTC swap market.


Types of Swaps

The most liquid ethanol product in the market today is the CBOT Calendar Average Swap (or simply CBOT swap), based upon next month's futures price. For example, a January CBOT swap settles at the same price as the February ethanol futures contract. A standard contract is 14,500 gallons per lot, half the size of an ethanol futures contract, and is based on Chicago area pricing. Since this swap settles financially, there are no concerns of delivery. Since its settlement price is based on the futures contract, the price is easy to track.

The next most liquid contract is the Chicago Platts ethanol swap, which also settles financially. The settlement price is based on the average price of Chicago Platts for each day, and the contract size is 42,000 gallons per lot. It is often traded as a differential spread to RBOB swaps since they are the same contract size.

The NY Harbor ethanol swap is also 42,000 gallons per lot contract and is based on the daily average pricing of NY Harbor Platts. Generally speaking, the NYH swap trades approximately 10 cents over the Chicago-based swap, accounting for transport cost. That spread has traded anywhere from 4 cents to 14 cents, however. There are often arbitrage opportunities to be found in the locational spreads as the prices are sometimes well below or above the transport cost. Over the years this was the contract of choice for exporters (especially from Brazil). Currently, with high Brazilian sugar prices and U.S. ethanol prices in the $2.30 range, it is not economically feasible for Brazilian producers to export ethanol to the U.S.

The ethanol/RBOB differential is perhaps the most common trade in the industry, though it can be a very volatile trade since ethanol and RBOB do not often correlate. There is a lot of activity in the market when RBOB trades at 50-60 cents over ethanol, and profit taking when the differential flattens out. This trade allows end users (blenders) to lock in their ethanol price at a discount to RBOB while they receive the 45-cent ethanol blenders credit.

Another very popular trade is the ethanol/corn crush spread. The CBOT ethanol swap is an equivalent size of one corn contract. One corn contract represents 5,000 bushels of corn, which produces approximately 14,500 gallons of ethanol, good for a corn/ethanol ratio of 2.9 bushels per gallon. This makes the CBOT swap easily traded versus corn as a crush spread.

The simple crush formula is the price of corn divided by 2.9 and then subtracted from the price of ethanol. This basic formula does not account for the dried distiller grains, which are also produced during the crush. An example of the simple crush spread is if Q4 CBOT swaps trade at $2 and Q4 corn swaps trade at $5, then the crush spread is 27.5 cents. ($2 – ($5/2.9) = $0.275)

The most popular way to trade corn is still the corn futures market, which is very liquid, although more and more ethanol hedgers are using calendar average corn swaps to hedge the crush. Similar to the ethanol swaps, corn swaps are traded OTC, settled financially and clearable over Clearport.

A third way to hedge corn is through an exchange traded fund called the Teucrium corn fund (NYSE symbol: CORN). The corn fund is the closest equivalent to corn futures in the market today and trades as an equity. This provides a new way to hedge corn without having to open a futures account. For the first time, anyone with a stock account can trade a corn-tracking fund.

Fifteen years have passed since my Lehigh soccer days. I now run along New York City's Central Park Reservoir rather than the cornfields of Bethlehem. Although I am a little slower, a little heavier, and I miss the days of running through cornfields, I am very proud to be part of an ethanol industry that continues to endure, adapt and revolutionize the global energy markets.

Author: Robert Esposito
Head of Latium Capital,
a division of GFI Securities LLC
(212) 968-2745
R.Esposito@latium-capital.com

Trading Swaps Robert Esposito handles ethanol swaps as the head of Latium Capital.

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An array of new financial instruments helps the industry overcome financial challenges and thrive.

Futures, Swaps Market Can Help Manage Risk

Posted Dec. 21, 2010

The U.S. DOE's Energy Information Administration released its Annual Energy Outlook 2011 on Dec. 16, which contains its base energy forecasts for the next year. The full report, which will contain differing assumptions, such as high or low prices for oil, will be released in the spring, said Peter Gross, EIA analyst.

Gasoline prices are forecasted to increase from $2.35 per gallon in 2009 to $3.69 by 2035. The number is lower than what was forecasted by the EIA last year. By 2022, the retail price of gas is predicted to be $3.43 per gallon, compared to $2.68 for E85. Because gas has a higher energy content, the prices are actually similar per mile traveled, the report said.

Prices for E85 are expected to shift from a volumetric basis to an energy-equivalent basis compared to the energy content in gas. Gross told EPM he sees this happening as E85 becomes more prevalent in the marketplace and consumers gain awareness about the fuel. He envisions a day when consumers don't pay as much attention to price per gallon of fuel, rather judging E85 by how many miles traveled for the price.

The EIA's projections for cellulosic biofuel are different than what was projected last year, with forecasts for some biofuels up, such as cellulosic ethanol, and others down, Gross said. Although it's difficult to know for certain, the EIA projects that overall there won't be enough cellulosic biofuels to meet the renewable fuel standard targets by 2022. The report forecasted the 2022 target of 36 billion gallons would be modified to 25.7 billion gallons.

U.S. consumption of liquid fuels, both fossil and biofuels, is projected to increase from 18.8 million barrels per day, in 2009 to 22 million barrels per day in 2035. As always, the transportation sector sucks up the lion's share of liquid fuels, at 72 percent of total consumption in 2009 with a slight increase to 74 percent in 2035.

The forecast also called for imports to meet a major but declining share of total U.S. energy demand. In 2005, U.S. dependence on imported liquid fuels reached 60 percent and by 2009 it had decreased to 52 percent. That percentage, which is measured as a share of total liquid fuel use, is expected to continue declining to 42 percent in 2035, the report said. This decrease is thanks to increased use of renewable fuels produced domestically; the adoption of efficiency standards, which reduces demand; and rising energy prices. "Rising fuel prices also spur domestic energy production across all fuels, which moderates growth in energy imports," the report said.

For example, production of U.S. crude oil was at 5.4 million barrels per day in 2009 and is projected to increase to 6.1 million barrels per day by 2019. However, it will decline slightly from that level to 5.7 million barrels per day in 2035. "Production increases come from onshore enhanced oil recovery projects and shale oil plays," the report said.

EIA outlook calls for $3.69 gasoline in 2035

Posted Dec. 21, 2010

Three judges from the U.S. Court of Appeals for the District of Columbia on Dec. 21 denied a petition for review of the U.S. EPA's 2007 renewable fuel standard (RFS2). In a 40-page ruling they said the EPA correctly carried out its duties required by the Energy Independence and Security Act of 2007.

Growth Energy, which joined the National Biodiesel Board as an intervener in the case, responded positively to the news. "This is an important legal development that upholds a critical pillar of a national energy policy that is intended to wean the United States off of foreign sources of fossil fuels," said CEO Tom Buis. "The renewable fuel standard was adopted by Congress as part of the Energy Independence and Security Act-the two most important words there being 'independence' and 'security.'"

The National Petrochemical and Refiners Association and the American Petroleum Institute filed the lawsuit in March and argued the issue on Sept. 17. The groups claimed RFS2 was impermissibly retroactive and violated statutory lead time and compliance provisions. In addition, the groups said it violated statutory requirements, setting separate biomass-based diesel volume requirements for 2009 and 2010.

API said it was concerned with the decision. "EPA failed to meet its statutory deadlines, and in March of 2010, finalized a rule that regulated refiners and importers for the previous year," said Patrick Kelly, senior policy advisor. "This is a disappointing decision. Setting requirements to blend certain biofuels for the previous year is a legally questionable retroactive action."

Lawsuit against EPA's RFS2 thrown out

Posted Dec. 23, 2010 Rio Hondo Community College in Whittier, Calif., will host the first of the 2011 ethanol workshops being held as part of the Clean Transportation Education Project, a collaboration of the Clean Cities Coalition and the N.C. Solar Center at North Carolina State University and Wake Technical Community College, funded through the U.S. DOE. The California Ethanol Symposium: An Examination of Demand vs. Availability will be held 9 a.m. to 4 p.m., Friday, Jan. 14, at the Rio Hondo Community College. Other workshops are being planned for April 14 in New Orleans and Sept. 14 in Milwaukee, Wis.
The Clean Transportation Education Project is holding a total of 36 workshops over two years covering ethanol, biodiesel, natural gas as a transportation fuel and fuel efficiency topics. Five ethanol workshops were held in 2010 in Bismarck, N.D.; Kansas City, Mo.; Syracuse, N.Y.; Macon, Ga.; and Ann Arbor, Mich. The free half- or full-day workshops are targeted at fleet managers, fuel providers, government officials, vehicle dealers, agriculture operators and the general public. Attendance has ranged between nine and 60 people with the average steadily going up, said Anne Tazewell, coordinator of the project at the NC Solar Center. While each of the local hosts tailors the program to local resources and concerns, all have included Rich Cregar, an automotive technologies expert with over 25 years experience in alternative fuels, as the lead presenter. "Rich is a master technician and has taught technicians for years," Tazewell said. "He covers emissions, how ethanol is working inside the vehicle as well as touching on the political issues and infrastructure topics." In the California workshop planned for January, the topics covered will include a discussion on the macro and micro pros and cons of ethanol use in California, best practices for sourcing production, distribution, handling and use, as well as a fleet success story and a flex-fuel vehicle display. Speakers include government officials, ethanol producers and distributors, among others. For more information on the California meeting email Jennifer@purposefocused.org, or call (562) 846-7717. For the April 14 ethanol workshop in New Orleans, contact rotte@norpc.org and for the Sept. 14 workshop in Milwaukee, Wis.; contact francis.vogel@we-energies.com.

California to host first 2011 ethanol workshop

Posted Dec. 23, 2010

The Sierra Club has voluntarily dismissed its pending lawsuit against the Michigan Department of Natural Resources and Environment regarding the Frontier Renewable Resources LLC proposed cellulosic ethanol facility. The group filed a Petition for Review with the Ingham County Circuit Court on Dec. 13, challenging the department's approval of an air permit for the 40 MMgy wood-to-ethanol plant Frontier plans to build in Kinross, Mich. On Dec. 17, the group dismissed its lawsuit after discovering that the air permit grants an exception for ethanol plants that the group was previously unaware of, according to a Sierra Club spokesman. "We still think it's an extraordinarily lousy project," said Marvin Roberson, forest ecologist and policy specialist for the Michigan Sierra Club. He said the group plans to challenge "every aspect" of the project and will evaluate further legal action as situations arise.

Frontier, a joint venture between cellulosic ethanol technology developer Mascoma Corp. and forestry company J.M. Longyear, received an air permit in September from the DNRE for its 40 MMgy cellulosic ethanol plant. J.M. Longyear will provide wood to the plant where it will be converted to cellulosic ethanol using Mascoma's consolidated bioprocessing technology. Construction of the facility is set to begin in the spring. The plant is expected to become operational in 2013.

The Sierra Club continues to claim the plant will consume more energy than it will produce and is therefore a poor use of Michigan's forestry resources. Roberson said figures in the company's air permit demonstrate the plant will consume four times the energy it will produce in ethanol. "That's in no way renewable or green," he added.

Steve Hicks, CEO of Frontier and J.M. Longyear, said the air permit for the Frontier project was granted following an extensive 14-month review process conducted by the DNRE. In addition, the company commissioned two Michigan universities to conduct lifecycle analysis evaluations of the plant. Both concluded that the plant's carbon footprint will be at least 60 percent lower than gasoline.

Hicks declined to speculate as to how the Sierra Club calculated such a poor energy balance for the facility. One possibility, however, could be that the Sierra Club used data for an 80 MMgy facility, which is Frontier's anticipated final capacity, rather than statistics for a 40 MMgy facility, which is what the company received an air permit for. Ken Nielsen, vice president of operations for Frontier, pointed out several other factors that could be misconstrued to show a negative energy balance for the plant, beginning with the size of the facility's boilers. "The Michigan air permit process requires Frontier to look at the potential to emit, which assumes 100 percent firing rate for all boilers all the time," he said. "Actual operations will be well below the permit figure. For example, Frontier will need much less steam from the boilers in the summer compared to the winter." Nielson said the Sierra Club also neglected to factor in the lignin and bark byproducts produced at the plant which will be used as boiler fuel by area companies, offsetting some of the need for fossil fuels.

Frontier said its cellulosic ethanol project will provide 150 construction jobs and 70 full-time jobs to Michigan, but Roberson passionately insisted that the ratio of jobs to product produced from Michigan wood doesn't measure up and said any other value-added product would be a better use of the state's forestry resources. "Making furniture is a great use of Michigan's natural resources," he said. "Frankly, even though I'm not a huge fan of pulp and paper or chipboard, they create far more jobs per wood unit created. If this project goes through, it will probably create the fewest jobs per wood unit in the history of mankind. It would create more jobs, use less energy, and be cheaper to give me $50 million to hire 100 people to sit in my backyard and watch a Bunsen burner."

Group drops lawsuit, still questions MI project

Posted Dec. 27, 2010

Chapel Hill, N.C.-based Maverick Biofuels Inc. recently announced it is collaborating with Raleigh, N.C.-based Professional Project Services to develop engineering designs for a proposed pilot-scale biorefinery.

According to Maverick CEO Sam Yenne, construction on the facility could begin towards the end of the first quarter of 2011. While a final site for the plant has not yet been selected, Yenne notes that Maverick is currently working to narrow down the potential sites for the facility. "The big effort [over the last couple of months] has been finalizing the engineering design," he said, adding that Maverick has also been preparing to begin the permitting process. Yenne estimates the pilot plant will have an annual production capacity of 180,000 to 200,000 gallons per year.

PPS specializes in engineering design services for industrial clients in the chemical, pulp and paper, pharmaceutical, fertilizer, manufacturing and power marketplaces. The company is working with Maverick to support the design and process integration for both the proposed pilot plant and future commercial-scale facilities. Currently the two companies are working to design what the pilot plant will look like, Yenne said. "We are identifying all the different pieces of equipment we can either obtain off-the-shelf or stuff that we've got to fabricate," he continued. "We're getting the pricing and everything we need for that, so we'll know exactly what the pilot plant is going to look like, what the utility requirements are going to be, and what it's going to cost us to assemble the pilot plant." In addition to working as an engineering partner on the project, Yenne said that PPS is also investing in it.

"This is an exciting opportunity for PPS," said CEO Chris Bailey. "We feel that Maverick has a unique technology that will help them become a leader in the biofuels industry. We look forward to working with their team in development this technology into a pilot-scale plant."

Maverick's technology produces mixed-alcohol biofuel consisting of ethanol, propanol and butanol from either biomass or municipal solid waste. The first major process is gasification, Yenne said. The synthesis gas that comes out of the gasifier is then put through a modified Fischer-Tropsch reactor. The material that exits the modified Fischer-Tropsch reactor is then put through an olefin hydration reactor, which results in a mixed-alcohol biofuel.

"We're really excited to be working with PPS, and that they signed on to be our partners for this project," Yenne said. "Their investment in the project is really valuable to us. At this stage of where we are with the company, we wouldn't be able to do that if they weren't investing in us as well. We're really excited about that. They bring a lot of expertise to what we are doing."

(Note: This article first appeared in BBI International's Biorefining magazine web news.)

Maverick announces engineering partner

Posted Dec. 27, 2010

Chicago, Ill.-based TetraVitae Bioscience successful completed the demonstration of its process to produce biobased n-butanol (normal butanol) in a corn dry-mill pilot plant. For the demonstration, TetraVitae retrofitted an integrated corn dry-mill pilot facility at the National Corn-to-Ethanol Research Center on campus of Southern Illinois University Edwardsville.

During the demonstration at NCERC, TetraVitae worked with the Separations Research Program at the University of Texas in Austin to refine production purification. To achieve this, the company took the raw chemical products produced at NCERC and manufactured purified n-butanol and acetone in a continuous distillation.

According to TetraVitae President and CEO Jay Kouba, the demonstration at NCERC further validated the company's technology, and that it could be deployed in existing corn dry-mill ethanol plants to efficiently produce n-butanol on a commercial scale.

"Though our process is very similar to the ethanol production process, we use a different organism during fermentation, and then we isolate the product," Kouba said, adding that TetraVitae is actively exploring partnership opportunities to deploy its technology within existing North American ethanol plants. Kouba noted that the company is interested in potentially using sugarcane feedstock to produce n-butanol in Brazil.

"Our intent is to partner with asset owners and to share in equity," Kouba said.

As a result of this successful demonstration, TetraVitae also validated its low-capital profile as a potential partner with ethanol plants. Kouba estimates TetraVitae has the capability of producing approximately 27 MMgy of n-butanol within a 40 MMgy corn dry-mill ethanol facility with a retrofit cost of about $6 million.

"It derates the plant so it doesn't make much material, but it does prove out the technology for a very low cost," Kouba said. "The second step of that is that we would make a more significant investment that actually brings the plant back up to its full production capability."

Like ethanol, n-butanol is an alcohol, but is comprised of four straight-chained carbon molecules as opposed to ethanol's two-carbon structure. Isobutanol is another form of butanol, but isobutanol's four-carbon molecules are branched, which make it more suitable as a fuel due to its high octane rating and low vapor pressure properties.

Both n-butanol and acetone are widely used as solvents, and as precursors to monomers used in paint resins such as butyl acrylate, butyl methacrylate, methyl methacrylate and methacrylic acid. TetraVitae is developing a route to 2-ethyl hexanol, which is also used extensively in coatings. The company is also developing n-butanol as a source for 1-butene, a co-monomer in linear low density polyethylene, the most commonly used material for plastic bags. Acetone and isopropanol are frequently used as solvents in a variety of personal care products.

Kouba said TetraVitae intends to initially market its n-butanol and acetone to be used for paint and coating formulations. "We're also developing technology to use cellulosic feedstock where we can expand potential chemical applications from that."

(Note: This article first appeared on BBI International's Biorefining magazine web news.)

TetraVitae successfully demonstrates biobutanol production

A dry ice cleaning business that serves ethanol plants is experiencing rapid expansion.
Spring Grove, Ill.-based New Age Cryo recently hired Shawn Easterly, who will work in sales and consulting, and added welding and painting services to its dry ice services. Easterly has five years experience in the ethanol industry and specializes in tuning ethanol plants for maximum efficiency, said Brad Potts, the company owner who also works in sales and consulting.
Before coming on board with New Age Cryo, Easterly worked for Hawkeye Energy Holdings LLC for nearly three years. His previous experience includes positions with U.S. BioEnergy Corp., which was acquired by VeraSun Energy Corp., and ICM Inc. Stoc Products Inc., the parent company of New Age Cryo, is an industrial valve distributor founded in 1982. N
ew Age Cryo was started to provide dry ice cleaning services. In a year and a half, the company has gone from one dry ice machine to six machines and four cleaning crews. "[That's] growing leaps and bounds for us," Potts said.
Dry ice is considered an environmentally friendly cleaning method and, unlike water cleaning, doesn't result in waste runoff that must be hauled away at a cost to the ethanol plant, said Tom Castino, operations director. Dry ice isn't abrasive and can safely clean electronics and wiring without damage. "It has a lot of different benefits," he said.
Ethanol plants often schedule dry ice cleaning of equipment, such as thermal oxidizers, during maintenance shut downs. However, dry ice also works well to clean other areas during non-shut down periods, Castino said. For example, the company uses dry ice to clean mold and build up off storage buildings, off load buildings distillers grains wet cake areas and more. "That's becoming a bigger part of our business," he said.
In addition, the company is working with a welder that has previous experience with ethanol plants. He is available for repairs if needed following the dry ice cleaning, Castino said. For example, the company did work at an ethanol plant that had rust holes in metal beams after only one year of operation. Finally, New Age Cryo can follow up by painting equipment or infrastructure with a product by Tnemec Company Inc., which helps extend the life of equipment. The goal is to help ethanol plants to cut back on the number of calls they must make to service providers to save them time and money, he said.
For more information check out http://www.newagecryo.com/.

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A dry ice cleaning business that serves ethanol plants is experiencing rapid expansion. Spring Grove, Ill.-based New Age Cryo recently hired Shawn Easterly, who will work in sales and consulting, and added welding and painting services.

New Age Cryo adds consultant, other services

In its sixth annual report on concentration in the ethanol industry, the Federal Trade Commission found the industry is continuing a trend towards deconcentration. The FTC reports that as of September, there were 160 U.S. firms producing ethanol, the same number as 2009.
The largest ethanol producer's share of capacity increased slightly to 12 percent of domestic ethanol production capacity, above the 11 percent share in 2008 and 2009, but still below the largest producer's capacity share between 2000 and 2007, which ranged from 16 percent in 2007 to 41 percent in 2000. The annual reports are required by the Energy Policy Act of 2005 which charges the FTC with performing a market concentration analysis of the ethanol production industry using the Herfindahl-Hirschman Index to determine whether there is sufficient competition to avoid price setting and other anticompetitive behavior. Marketing arrangements are included as well.
The report requirement reflects concerns from a decade ago that the industry could potentially become overly concentrated, with HHIs in 1998 and 2000 just under 2,000. A market with an HHI below 1,500 is considered unconcentrated. Markets with HHIs over 2,500 are highly concentrated and more likely to pose competitive concerns. Based on production capacity, the HHIs for the domestic ethanol production industry range from 288 to 606 in 2010, depending on the method of market share allocation. All of the 2010 HHIs are below those presented in the 2008 ethanol report. The analysis also considers the impact on competition when producers participate in marketing agreements. Attributing the market share of each producer to the firm that markets for that producer results in an HHI of 671. Attributing a producer's market shares to its marketing firm only when the marketing is pursuant to a pooling agreement yields an HHI of 304. These two HHIs are slightly lower than the comparable figures in last year's report (722 and 305, respectively). That compares with the 2006 report where the HHI values were between 326 and 995 for the three methods used to calculate market share and with 2005 HHI indices between 499 and 1,259, a drop of 21 percent to 35 percent.
The 2006 analysis of the impact of marketing agreements found an HHI of 1,345 compared to 1,613 in 2005, indicating those agreements created a market with moderate levels of concentration. The FTC also provides an overview of the ethanol market in its annual report. Ethanol production and production capacity have both increased this year, the report says.
Domestic ethanol production increased approximately 23 percent between 2009 and 2010, from 10 billion gallons to 12.3 billion gallons. Production has increased over 750 percent since 2000, when domestic ethanol production was 1.6 billion gallons. Domestic ethanol production capacity, including capacity under construction, also rose from 14.5 billion annualized gallons as of October 2009 to 15.2 billion gallons per year as of October 2010.
In concluding there is little concern regarding ethanol industry concentration, the FTC report notes the U.S. industry currently lacks significant barriers to entry. "Potential entrants can purchase existing production facilities, some of which are currently idle due to recent economic conditions and past bankruptcies," the report says. "In addition, construction and expansion projects continue in the industry today, suggesting that entry into the ethanol marketplace by means of new capacity is not currently cost-prohibitive. An increase in supply resulting from new entry likely would make any exercise of market power unsustainable. The probable influx of ethanol imports also would likely restrain any potential exercise of market power by a domestic firm."
To read the entire report on the FTC website visit: <a href="http://www.ftc.gov/os/2010/12/101203ethanolreport.pdf" target="_self">http://www.ftc.gov/os/2010/12/101203ethanolreport.pdf</a>

The chart shows historical fuel ethanol capacity and the HHI concentration index from the FTC â€œ2010 Report on Ethanol Market Concentration,â€� (page 19)â€” CLICK ON CHART TO ENLARGE

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In its sixth annual report on concentration in the ethanol industry, the Federal Trade Commission found the industry is continuing a trend towards deconcentration. 

FTC finds deconcentration trend continues

Heron Lake BioEnergy LLC, a 50 MMgy ethanol plant in Heron Lake, Minn., will pay a $66,000 fine to resolve alleged violations of its environmental permits. The alleged violations of air quality and water quality permits, including reporting issues, date back to when the plant started construction and began commissioning in the fall of 2007, said Bob Ferguson, CEO of the plant.
On the air quality side, the violations include exceeding permitted emissions limits, failure to conduct required monitoring, failure to maintain emissions-control equipment and failure to report or certify data, according to a Minnesota Pollution Control Agency press release. In addition, the company had water quality violations, including failure to obtain approval for the use of chemical additives in wastewater, failure to provide samples with specified holding times, failure to monitor for specified pollutants at the required frequency, exceeding permitted effluent limits and failure to install or maintain flow-monitoring equipment before discharging.
Heron Lake BioEnergy will pay a civil penalty of $66,000. According to the agreement, up to $12,000 of that will be used for an environmental project agreed upon by the company and MPCA. In this case the plant will complete a fugitive dust emissions feasibility study, examining the dust at the plant, especially the grains receiving and load-out areas for distillers grains, Ferguson says. The study will help determine how to capture dust emissions at the facility and will eventually help determine dust emission capture plans at other plants in the state, he added.
The company has also agreed to a schedule of corrective actions, the MPCA said. This includes submitting plans on how the company plans to comply with its environmental permit limits and prevent future violations.

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Heron Lake BioEnergy LLC, a 50 MMgy ethanol plant in Heron Lake, Minn., will pay a $66,000 fine to resolve alleged violations of its environmental permits. 

Heron Lake plant agrees to $66,000 penalty

Pacific Ethanol Inc. announced Dec. 29 that it had been granted a 180-day extension, or until June 27, to regain compliance with the minimum $1 bid price per share for continued listing on the Nasdaq Capital Market.
On Dec. 28 Pacific Ethanol received a letter from the Nasdaq Stock Market notifying the company that it had met all the requirements for the extension. If the price of its common stock isn't at least $1 per share for a minimum of 10 consecutive business days Nasdaq will be delisted this summer. However, the company does have the option to appeal to a hearings panel.
Pacific Ethanol announced this fall that it purchased a 20 percent ownership in New PE Holdco LLC, which owned Pacific Ethanol's four ethanol plants: a 60 MMgy plant in Burley, Idaho, a 40 MMgy plant in Boardman, Ore., a 60 MMgy plant in Stockton, Calif., and a 40 MMgy plant in Madera, Calif. The $23.3 million purchase gave Pacific Ethanol the ability to regain controlling interest in its ethanol plants.
The plants in Idaho and Oregon are operating and the company recently restarted the Stockton plant. The facility&rsquo;s first corn grind was on Dec. 9 and is &ldquo;now operating at close to operating capacity shipping ethanol and feed to local markets,&rdquo; according to a press release. "We achieved our goal of successfully restarting the Stockton ethanol facility in December 2010, which we believe increases our opportunity to benefit from the commencement of the California Low-Carbon Fuel Standard this month,&rdquo; said Neil Koehler, president and CEO. The Madera facility will be restarted as market conditions permit.
As for getting that common stock price above $1, Koehler said the company would continue to execute its plan. He believes as that process moves forward investors will gain confidence in the company's stock and performance, he told EPM.

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Pacific Ethanol Inc. announced Dec. 29 that it had been granted a 180-day extension, or until June 27, to regain compliance with the minimum $1 bid price per share for continued listing on the Nasdaq Capital Market.

UPDATED: Pacific Ethanol granted extension, restarts plant

Posted Dec. 21, 2010

Researchers at the Great Lakes Bioenergy Research Center have taken a cue from Mother Nature and are evaluating natural strains of yeast to guide the development of industrial strains that will be better able to handle the stressful environments associated with cellulosic and traditional ethanol production. The research group has so far identified certain genes in wild yeast cells that improve their tolerance of ethanol. This information can be used to bioengineer yeast cells that produce higher yields and concentrations of ethanol. The next step is to identify which genes allow some yeast cells to tolerate higher levels of other toxins that are typically found in cellulose. Researchers say that identifying those genes could lead to a significant breakthrough for cellulosic ethanol production.

"We were very pleased with how successful we were in identifying genes that are new engineering targets, but it's almost like the tip of the iceberg," said Audrey Gasch, assistant professor of genetics at the University of Wisconsin-Madison. Gasch is also a researcher at the GLBRC and co-author of a study on the group's research that was published in the December issue of Genetics - the Genetics Society of America's scientific journal. She said the inability of yeast cells to cope with toxins found in cellulosic material has been a "major bottleneck" in the task of producing cellulosic ethanol efficiently and is now the focus of the team's research. "The combination of ethanol and these other toxins is kind of a double whammy for the yeast cells," she said. By further examining various strains of natural yeasts and their ability to resist similar toxins, the group could discover what genes can be "switched on" in industrial strains to allow them to better handle cellulosic materials.

Examining yeast strains with the goal of engineering more toxin-resistant strains is not a new area of research, Gasch said. However, the GLBRC group employed a new approach to this research, which they believe greatly speeded up the results process. What was their unique approach? They simply studied nature. To do this, the group first obtained a sampling of approximately 50 different strains of the same species of yeast - Saccharomyces cerevisiae - some industrial strains and some wild strains. "Saccharomyces cerevisiae grows in diverse environments from all over the world," Gasch said. "But different strains from different environments have very different tendencies. Some of those strains are just inherently very resistant to toxins that we care about." Samples of natural yeast strains were obtained from a wide range of environments, including the Philippines, Siberia and the research team's local oak tree soil in Wisconsin.

Once the sampling of strains had been gathered, the research team compared and contrasted the resistant and less-resistant strains and examined how those strains responded to ethanol. Yeast cells have about 6,000 genes, Gasch said, so by employing this unique compare/contrast method, researchers were able to greatly accelerate the evaluation process. "One of the problems with bioengineering in general is trying to figure out which aspects of cellular physiology to tweak or engineer," she said. "It was the comparison of the tolerant strains and the sensitive strains that allowed us to very quickly hone in on the genes that were allowing the resistant strains to maintain their resistance to ethanol." After identifying which genes were responsible for ethanol resistance, researchers were able to essentially "turn them on" in industrial strains, allowing them to be more tolerant of ethanol and thus boosting their production performance.

Gasch hopes subsequent studies will identify many other genes that can also be applied to this engineering. The GLBRC is focused on improving the efficiency of cellulosic ethanol production, and the team is currently working with about 1,000 strains of yeast using the same method as was previously applied to the strains in an attempt to identify genes that can be tweaked to improve tolerance of cellulosic toxins. Gasch said the team anticipates publishing its next round of studies, focused on cellulosic developments, sometime next year.

The Great Lakes Bioenergy Research Center is led by the University of Wisconsin-Madison. Michigan State University is a major partner in the center. Additional partners include the U.S. DOE's National Laboratories, Cornell University, Illinois State University, Iowa State University, the University of Minnesota, the University of Toledo, and Lucigen Corp.

Nature leads research team to better yeast

Two companies received awards for their work in Indiana this December. Jeff Broin, CEO of Poet LLC, and Thornton's Inc., a gasoline/convenience chain retailer with 36 E85 stations, were both honored during the Greater Indiana Clean Cities awards ceremony. Broin received the 2010 Paul Dana Excellence in Bioenergy Leadership Award from the Indiana State Department of Agriculture.
&nbsp;Thornton's was awarded for outstanding achievement in the implementation and promotion of E85 retail locations from the Greater Indiana Clean Cities Coalition. Broin was honored for exemplifying leadership and innovative vision in the bioenergy industry. The Paul Dana Award was established in honor of Dana, an Indy Racing League driver, who died in a racing accident in 2006.
Poet has 26 ethanol plants with a total production capacity of 1.6 billion gallons of ethanol and about 4 million tons of distillers grains annually. There are four Poet plants in Indiana. "Jeff Broin's work has led to jobs for hundreds of Hoosiers and lessened our reliance on foreign oil," said Lt. Governor Becky Skillman, who serves as Secretary of Agriculture. "We are thrilled with Poet's presence in Indiana, and I congratulate Jeff on being this year's winner."
Thornton's has really went "above and beyond" in installing E85 pumps, said Kellie Walsh, executive director of Indiana's Clean Cities. Of the 36 the company has installed, 10 are in Indiana. The company has also been a partner in I-65: America's Biofuels Corridor, where flex-fuel vehicle (FFV) drivers can travel from Gary, Ind., to Mobile, Ala., and be assured of a good supply of E85.
The company learned of state and federal funding sources to install E85 infrastructure through Clean Cities, said Chris O'Bryan, financial analyst. Along with the 50 percent Alternative Vehicle Refueling Property Tax Credit, the company decided it made good financial sense to install E85 pumps. (That credit was reduced to 30 percent in the tax bill that passed during the lame duck legislative session.)
&nbsp;Installing the E85 pumps was a good decision and a good investment for the company, O'Bryan said. First off, it's the right thing to do. The fact that customers were asking for it and the price spread between ethanol and gasoline was also a motivating factor. "There's more flex-fuel vehicles on the road every day, and we like the prospects going forward," he says.
In 2005, Indiana only had one ethanol plant and no public E85 pumps-even though it's the fifth largest corn state. That situation has changed a lot since then, said Indiana State Department of Agriculture Director Joe Kelsay. The state now has 11 completed ethanol plants and two more under construction, adding up to a combined total of 1.1 billion gallons of ethanol produced annually. In addition, the state now has more than 120 public E85 pumps.

Thorntonâ€™s Inc. has installed a total of 36 E85 pumps. 

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Two companies received awards for their work in Indiana this December. Jeff Broin, CEO of Poet LLC, and Thornton's Inc., a gasoline/convenience retailer with 36 E85 stations, were both honored during the Greater Indiana Clean Cities awards ceremony.

Broin, Thornton's awarded for work in Indiana

Miscanthus will see a giant leap in acreage in 2011, thanks to Soperton, Ga.-based Repreve Renewables LLC. The company currently has 500 acres planted in five locations in the Southeast, which Craig Patterson, manager of commercial operations, says is equal to the total of all other miscanthus plots being grown now in the U.S. and Canada.
In 2011, Repreve has committed to getting 10,000 acres in the ground. Repreve is hoping to attract growers at a field day planned for Jan. 13, at the main farm in Soperton. If there aren't enough farmers that commit, Patterson adds, "we'll plant it ourselves. There will be 10,000 acres in 2011."
The Freedom Field Day agenda includes field tours, presentations and exhibits by Mississippi State University, the University of Georgia and Appalachian State University, an explanation of the Biomass Crop Assistance Program and demonstrations of rhizome harvesting and planting as well as cutting and bailing of mature miscanthus.
The push to commercialize miscanthus got a boost in 2010 when Phillip Jennings, a turn grass grower and founder of Sunbelt Biofuels, attracted new investors and folded his company into Repreve Renewables. The word "repreve" is a service mark of Unifi Inc. being used under license. Unifi is a Greensboro, N.C.,-based global textile company, which announced the creation of the joint venture with Sunbelt Biofuels under the new name in mid-2010. A third, unidentified investor, brought the capitalization up to $10 million, according to Patterson.
Repreve is licensing the trademarked Freedom variety of miscanthus from Mississippi State University, which developed the variety and continues to work on crop development. Patterson says one-year-old stands in the Southeast are expected to yield between 4 and 6 tons per acre, two-year-old stands about 10 tons per acre and after four years, 25 tons per acre. "That's harvested with 10 to 15 percent moisture," Patterson adds. "Yields will range between 20 to 22 bone dry tons per acre."
Patterson believes Freedom miscanthus will be a good fit in the Southeast, where growing conditions and underutilized farm land will favor the long-lived perennial biomass crop. "All those that grew tobacco need something else," he points out. The high-yielding miscanthus will compete well with sub-par corn and sub-par soybeans, provide a crop for land that has become overgrown, and even yield as well or better than timber. Planting equipment used for tobacco has been modified for planting miscanthus rhizomes, although Patterson adds the new investments will allow for the engineering of larger, more efficient equipment.
Repreve expects the immediate market for using the biomass resource will be for power, by both large and small scale combined heat and power units as well as being co-fired with coal. "Another market down the road is biobased chemicals, plastics and wood fillers, which is a huge market," Patterson says. "We feel biofuels is a better use for cellulosic biomass than power," he adds.
The company is working out a supply agreement with Range Fuels Soperton Plant, an 11 MMgy cellulosic ethanol plant down the road a piece from Repreve's main farm. Certainly, for an emerging biomass crop that had, at most, 1,000 acres in research plots across the U.S. and Canada in 2010, the leap to 10,000 acres in 2011 is huge. "We are capitalized now, so we can plant the acres, invent our equipment," Patterson says. "Before this, nobody had committed the money to get this crop commercialized."

Miscanthus shows great promise as a biomass crop, with potential yields of over 20 tons per acre.

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Miscanthus will see a giant leap in acreage in 2011, thanks to Soperton, Ga.-based Repreve Renewables LLC. 

2011 miscanthus acres to mushroom

Descriptions of the U.S. DOE Loan Guarantee Program range from "promising" to "complete failure" depending on who you ask and whether they are applicants in the program. Renewable Fuels Association President Bob Dinneen speaks passionately on the topic and has consistently called out the DOE for unresolved problems within the program. The rigorous application process clearly puts cellulosic biofuel projects at a disadvantage, he says, and makes it nearly impossible for first-of-a-kind projects to be commercialized. The bill "is largely seen as a complete failure to date in terms of bringing next generation biofuel technologies to the marketplace," Dinneen wrote in a September blog post confronting the DOE. The RFA has repeatedly called for the program's reform, but has received little response from the DOE.
 Applicants such as BlueFire Renewables Inc. and Fulcrum BioEnergy Inc. have the most hands-on experience as cellulosic producers attempting to acquire financing, but they hold back from publicly criticizing the program while their applications are still pending. What they will say, however, is that they remain hopeful their applications will be accepted and that the November advancement of Fulcrum's application to the term sheet negotiation step is a promising sign for the cellulosic industry.
 "The DOE program is a very valuable program to kick off this new industry of ethanol production," says Rick Barraza, vice president of administration at Fulcrum. "It's been a lot of hard work to apply but I think the DOE has been cooperative. It's a very rigorous program and is a lot of work for companies. We think we were successful with DOE because we came to the table with a very attractive project for a number of reasons." Fulcrum has applied for approximately $70 million from the loan guarantee program, 60 percent of the project's total cost. The proposed Sierra Biofuels Plant near Reno, Nev., is expected to produce 10.5 MMgy of municipal solid waste-based ethanol and will also produce 16 megawatts of electricity. The company filed its initial application for a DOE loan guarantee in 2009. The second part of the application was filed in early 2010. In order to advance to term negotiations with the DOE, Fulcrum had to acquire long-term feedstock and offtake agreements, prove its gasification technology to the DOE, sign a contract with an engineering, procurement and construction firm, acquire the necessary permits for construction and show proof of equity capital. "It's been a long and hard effort with the DOE and we're glad we're to this point," Barraza says. "We realize there is more to do and we are not done, but we've reached an important milestone."
 "That was, I would suspect, one of the highest rated projects DOE had," BlueFire CEO Arnie Klann said shortly after Fulcrum's term sheet announcement in November. "My feeling is if [the DOE] got that one out, I would hope that they could get the rest out by the end of the year. We're hopeful that we'll be next." In mid-November, BlueFire was working through the initial due diligence phase and had acquired all of the environmental permits necessary for its proposed 19 MMgy wood waste-to-ethanol plant in Fulton, Miss. BlueFire is seeking $215 million from the DOE to fund its $296 million construction contract.
The Process Slog 
 The initial DOE loan guarantee program, Section 1703, was created in 2005 in order to support technologies that reduce greenhouse gas emissions. In 2008, the American Recovery and Reinvestment Act included funding for a new loan guarantee section, Section 1705, with the goal of financing clean energy projects that would otherwise have a difficult time acquiring funding due to the collapsing credit market situation. Very few applications have been filed for Section 1703, most likely because the applicant would be required to pay for any credit subsidy costs associated with approved loan guarantees. The 1705 program, however, does not require the applicant to pay for credit subsidy costs. During testimony given to the Senate energy committee at a September hearing, Jonathan Silver, executive director of the DOE's loan program, said the agency had issued four conditional commitments under the 1703 program and 10 under the 1705 program since 2008. Combined, the commitments represent $13 billion in loan guarantees. None of the commitments were made to biofuels projects.
 Before a loan guarantee can be granted, applicants must pass an extensive six-step process which includes project summary reviews, due diligence and term sheet negotiations, credit analysis and review, deal approval, post-conditional commitment due diligence and financing negotiation and, finally, closing. "By better leveraging our existing resources and re-engineering our processes, we have been able to significantly reduce the amount of time it takes to review applications, to expedite the transaction approval process and to provide greater transparency in our work," Silver told the senators. "Over the last few months, we have significantly improved the pace at which we are processing transactions, and aim to do even better."
 Tim Newell, senior advisor at U.S. Renewables Group, a private equity firm that has invested in Fulcrum and other renewable projects, testified at the September Senate energy committee hearing and commended Silver and the loan guarantee office for its progress. "Our firm has experienced its own share of frustrations, especially early on when the program was critically hampered by a lack of personnel generally, and a lack of seasoned project finance professionals," he told the senators. "Over the past year, my firm has seen a major transition in the operation of the DOE loan guarantee program under Jonathan Silver, including the much-needed attention of seasoned project finance professionals with extensive energy financing experience. The proof of that change is striking." Newell said it previously would not be uncommon for his firm to wait at least three months for the DOE to approve a simple project summary. In August, however, the DOE approved a Part 1 application in just six days. "That is progress you can measure," he added.
Federal Favoritism 
 According to the RFA, these slight improvements are a positive step, but major modifications still must be made in order for the loan guarantee program to provide the assistance for which it was designed. Of particular concern is the required long-term off-take agreements and feedstock supply contracts. This step unfairly favors power generation projects over fuel projects, according to Dinneen. "Anyone even tangentially aware of fuel markets knows this is simply not how fuel markets operate," he says. "The markets for electricity and fuels function differently. As such, the loan guarantee program must reflect these differing real-world circumstances in determining the qualifications of various applicants. We can't bury costs in a rate base and we don't have long-term supply agreements. As long as the DOE loan guarantee program is going to ignore the realities of fuel marketing, and hold to a risk assessment equivalent to that of any private sector bank, it will not be the tool Congress intended to assist emerging technologies over the investment valley of death."
 Fulcrum and BlueFire have managed to sign offtake and supply contracts, but not without struggle. Klann says creating and finalizing such agreements without an estimated financing approval date has been the most difficult aspect of the application process thus far for BlueFire. "That's been the hardest hurdle in the essence of getting everything to work together time-wise when one of the biggest pieces, which is the loan guarantee program, is not nailed down."
 RFA points out that the program, which was designed to help commercialize risky, innovative technologies, includes a requirement for some applicants to provide data from a commercial-scale facility. This requirement is nearly impossible for applicants who are applying for funding specifically so that they can scale-up their projects from demonstration to commercial scale.
 Another irony of the program is that it was created to provide financing to projects that would otherwise have difficult accessing capital, yet the program itself is running short on capital. In 2009, approximately $2 billion was redirected from the loan guarantee program to pay for the Cash for Clunkers program. In 2010, Congress approved the transfer of another $1.5 billion from the loan program to state budget accounts. "That $3.5 billion, assuming the DOE had this program operating appropriately, which it does not, would have financed up to a dozen commercial-scale cellulosic and other next-generation ethanol projects," Dinneen says.
 In Newell's testimony to the Senate committee, he said it appears the Office of Management and Budget initiated the transfer of funds away from the loan guarantee program and that the agency is overstepping its administrative role in the loan guarantee process. U.S. Renewables Group has determined that if all projects that were in the due diligence phase in August were approved, the loan guarantee program's entire budget would be used by February, seven months before the program is scheduled to end. "Renewable energy trade associations and members of Congress are still seeking to fully understand OMB's role in evaluating these applications and why OMB appears to be a major cause of delay in issuing these guarantees," Newell said in his testimony. "OMB's level of involvement and review times appears to exceed that of other federal loan guarantee programs."
Other Options 
 The USDA's loan guarantee program appears to be increasingly viewed as the best alternative for federal financing of cellulosic projects. BlueFire filed an application with the USDA in August as a direct result of the DOE's program delays, according to Klann. "We have two bites at the apple, so to speak," he says. "We're hoping for either a USDA or a DOE guarantee." Klann says the USDA already has a proven track record funding biofuels projects, (it approved loan guarantees previously for Range Fuels Inc. and Sapphire Energy Inc.) whereas the DOE has yet to complete a biofuels application. "The USDA knows how to manage risk," he says. "I believe they may be more adept at managing risk than the DOE. But from a financial standpoint, the DOE appears to be better." The DOE's loan guarantees offer a lower interest rate and direct lending, which means less negotiating with private banks, he says.
 During comments made to attendees at the Cellulosic Biofuels Summit held Nov. 15-17 in Washington, D.C., Dinneen also praised the USDA for its role in providing assistance to cellulosic producers. "There is clearly more hope for the USDA's loan guarantee program," he said. "Secretary [Tom] Vilsack and Under Secretary [Dallas] Tonsager are committed to seeding investment and appear willing to accept a few inevitable failures in order to assure the desired successes. But even with that program, the influence of bean counters at OMB could ultimately undermine the program's intent."
 Legislative reform may be the only way the DOE loan guarantee program can achieve widespread success. An Oct. 25 memo sent to President Obama from Carol Browner, the assistant to the president for energy and climate change, Ron Klain, chief of staff to vice president Joe Biden, and Larry Summers, White House economic advisor, stated their belief that the program is valuable enough to be extended past its scheduled expiration date of Sept. 30, 2011, but extensive reform is also necessary.
 Silver has also reportedly admitted that a necessary overhaul of the loan guarantee program will only be possible through legislation. But while loan guarantees can certainly play a vital role in advancing risky technologies such as cellulosic biofuels, Silver pointed out in his Senate testimony that they shouldn't be considered the only option for advancing these technologies. "It is important to recognize that the loan programs represent only one of a variety of potential approaches to providing federal support for clean energy," he said. "We must think about enabling private sector clean energy financing in a comprehensive manner, ensuring that our limited resources are deployed in the most effective and coordinated manner. Only then will we be able to create an environment where the private sector will invest in clean energy technologies at a scale needed to reach our national clean energy goals."
Author: Kris Bevill Associate Editor, Ethanol Producer Magazine (701) 540-6846 kbevill@bbiinternational.com

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Drawing Board Fulcrum Bioenergy Inc. is currently negotiating terms for a $70 million U.S. DOE loan guarantee that will partially fund a 10.5 MMgy cellulosic ethanol plant in Nevada. Photo: FULCRUM BIOENERGY INC

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Milestone Reached Rick Barraza, vice president of administration at Fulcrum, says the DOE has been cooperative as the company is the first to advance a loan application.

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In Process BlueFire CEO Arnie Klann is hoping his company will soon follow Fulcrum into the next step with DOE.

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Will improvements to the U.S. DOE's Loan Guarantee Program be enough to drag cellulosic projects out of the financing muck?

Bogged Down

This month&rsquo;s theme, woody biomass, has caused quite a stir as more projects that intend to utilize the resource to produce power and heat emerge.
 One of the main concerns people have about using woody biomass as a power source is that it will decimate our nation&rsquo;s forests. I understand why this is a concern, but I maintain that the use of woody biomass can be sustained by concentrating on the planting of fast-growing tree species on marginal land, replanting tree stands as they are harvested, which is already being done, and focusing on wood residue that isn&rsquo;t used by the wood products industry, such as insect and disease-damaged trees and forest residue that&rsquo;s removed to prevent fires.&nbsp;&nbsp;&nbsp;
 I recently read about a great example of how a group of forest managers, the forest products industry, environmentalists, economic developers and other interested parties in Arizona have worked together to sustainably use woody biomass from national forestlands. The White Mountain Stewardship Project, which involves the Apache and Sitgreaves National Forests in East-Central Arizona, was created to provide a long-term, reliable supply of woody biomass for the wood products industry, reduce the risk of wildfires and stimulate the local economy, according to the article. The project, now in its fifth year, has succeeded in maintaining and improving forest health, creating jobs, supporting the local timber industry and the economy, and producing energy. The article &ldquo;Contract Brings Jobs, Energy, and Healthier Forests&rdquo; by Steve Wilent was published in the December issue of The Forestry Source.
 The article talks about the project, its benefits and the effort it took to make it successful. As you may have guessed, a lot of hard work and compromise went into this project. As with any large-scale project involving several different people and entities&mdash;all with their own agendas and goals&mdash;there are challenges and disagreements, but the fact that they could all come to some sort of agreement is something that should be celebrated. And, as one of the sources in the articles pointed out, it didn&rsquo;t happen overnight. &ldquo;That&rsquo;s one of the bigger lessons that we try to impart to other national forests who come out here and ask how they can make this happen on their forests,&rdquo; says Sue Sitko, The Nature Conservancy&rsquo;s White Mountain program manager. &ldquo;You can&rsquo;t simply decide you&rsquo;re going to implement a stewardship project and expect everything to fall in line. There has to be a lot of work up front before that happens.&rdquo;
 To read more about this project, visit www.nxtbook.com/nxtbooks/saf/forestrysource_ 201012/#/0.

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Woody Biomass Use  Doesn't Have to be Controversial 

Happy New Year and happy new Congress.
 The 112th Congress begins its first session later this month. As all are aware, the Republicans have wrested control of the House away from the Democrats.
 How will these changes in Washington affect the biomass industry?
 The short answer is that things will probably change to some extent, but probably not a whole lot. Below are a few areas where we can expect to see differences from the Democratic reign. But, rest assured, the Biomass Power Association will be working closely with our team in Washington to continue to keep the biomass industry and our legislative issues front-and-center for new and old members alike.
 Renewable energy standard: During the 111th Congress, many in the renewable energy sector had high hopes for the passage of a renewable energy standard, which would likely have resulted in extra incentives for renewable energy forms over more traditional forms of energy production. The Republican majority in the House may not have the same appetite for aggressive federal stimulus for the renewable sector. That said, clean energy is a bipartisan issue, so stay tuned.&nbsp;
 Taxes: Since Republicans tend to vote heavily in favor of business interests&mdash;especially small business&mdash;we are&nbsp; hopeful that the 1603 tax extenders will be enacted at the beginning of the new Congress (if they were not enacted during the December lame duck session). Tax extenders would give many new and existing facilities some room in the budgets for updating equipment, hiring extra help and many other expenses that are essential to effectively running a biomass facility. Many other renewable energy associations are similarly hopeful for a near-term 1603 passage. As this column is going to press, the fate of the production tax credit for existing facilities is very much uncertain. Jobs: Jobs and the economy will likely take a place of prominence during the start of the new Congress. If your district elected a new member of Congress, we urge you to write a letter of introduction to your new representative. Ideally, the purpose of your letter would be threefold: explaining what biomass energy is, listing the number of jobs that your biomass facility provides to the district&rsquo;s economy and describing the many economic and environmental benefits of biomass energy.
 As we all know, many states are taking a growing interest in our industry. The state level traditionally has been where the biomass industry fights some of its most challenging battles, and we do not expect this to change. Some states, like California, have been highly supportive of biomass throughout the industry&rsquo;s short existence. Others, like Massachusetts, have proven to be more difficult to win over.
 As more biomass facilities are built across the country, we will continue to work closely with state and local officials to ensure they have a good understanding of the many potential benefits offered by biomass.
 Meanwhile, the U.S. EPA has announced a few policy changes that will positively affect the industry, either immediately or sometime in the future. It appears increasingly likely that the agency will correctly classify biomass as environmentally friendly or carbon neutral in the new year. BCAP: Finally, there is BCAP, which remains a significant program for the biomass industry. All of us will have to work hard in the coming year to make sure Congress funds BCAP at acceptable levels. While our job will be made extra challenging in this era of fiscal restraint, biomass deserves the same level of support provided to other forms of agriculture. It&rsquo;s up to us to make sure that happens. We wish each and every one of you a Happy New Year, and we look forward to working with you to continue to educate Americans and our elected officials about our industry. Author: Bob Cleaves President and CEO, Biomass Power Association <a href="http://www.USABiomass.org">www.USABiomass.org</a>

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How Will Republican Leadership Affect  Biomass and Other Renewables?

Technologies for biobased heat and power, and the resulting economic and environmental benefits, may vary because of the regional availability of resources and needs. In Maine, for instance, the Manomet Center for Conservation Sciences has published a report that finds burning of whole trees for electricity production may not be as carbon neutral as once thought and that it will take 40 years for the carbon balance to catch up.&nbsp;
 This study does, however, conclude that trees used for combined heat and power (CHP) have a much more positive effect on efficiency and carbon balance. The Manomet study makes assumptions about the use of forest assets that can tend to make the projections less favorable for trees used for heat and power. This study is also an example of the regional differences in application of biomass for heat and power and the assumptions that must be made to project the efficacy of individual biomass technologies.
 In contrast to Maine, the type of biomass applications you would find in the Central Plains states of the United States are quite different. In the Plains states, agriculture residues and energy crops would be the primary source of biomass for use in heat and power generation.&nbsp;
 Biomass feed systems, burner retrofits and emissions control will be different for agricultural residues or energy crops compared to the use of trees.&nbsp;
 Recent studies at the Energy &amp; Environmental Research Center have shown that cocombusting woody biomass with coal has the potential to remediate some of the fouling issues in the furnace, thereby enhancing the overall plant efficiency, but this will depend on the type of woody biomass and the combustion conditions.&nbsp;
 Cofiring sawdust can reduce the amount of inorganic material or ash that will be available in the furnace to impact heat-transfer surfaces and reduce the cause of fouling and slagging issues, while cofiring bark or hog fuel with inherent higher inorganic ash content may not reduce fouling and slagging issues.
 For agricultural residues such as wheat straw, cofiring can also be problematic because of very small silica phytoliths that are contained in the plant material to give rigidity. These phytoliths are an amouphous form of silica, can have low melting temperatures, and will mix with other inorganic elements in the ash to produce sticky ash material that will adhere to heat-transfer surfaces reducing thermal efficiency of the furnace. This can be overcome by adjusting the design of the furnace and the way the straw is combusted.
 EERC pilot testing shows that it is imperative to match technology applications with resources to properly utilize the vast biomass resources available in the United States to offset our fossil fuel use and reduce overall carbon emissions.
 In the end, smart planning, matching biomass technologies with biomass resources, and learning from the experience of others will ensure the continued growth of biomass and U.S. energy security while reducing carbon emissions. Author: Bruce Folkedahl Senior Research Manager, Energy &amp; Environmental Research Center (701) 777-5243 <a href="mailto:bfolkedahl@undeerc.org">bfolkedahl@undeerc.org</a>

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Biopower Technologies  May Vary by Region 

Biomass is one of the oldest energy sources, and there are compelling arguments for its use to generate electricity. First, unlike fossil fuels, the regenerative capacity of biomass provides for a renewable fuel source. Second, a significant amount of viable feedstock is considered waste, the use of which serves the dual purposes of energy production and waste management. Third, the use of sustainable biomass displaces the use of fossil fuels. Though both fuel sources emit CO2, the CO2 emitted by biomass would occur anyway through the process of decomposition, so there is a net reduction in CO2 emissions. Finally, the combustion of biomass also reduces methane emissions associated with the naturally occurring process of decomposition.
 Despite the significance and potential of biomass as an energy source, development of a reliable feedstock supply chain has not occurred. Developers understand that a stable, long-term feedstock agreement is essential to procuring financing for any biomass project. Demonstrating to a landowner or farmer that the economic and other benefits of producing biomass (the production of which is often a multi-year commitment) outweigh the current land use can be a challenge without an established demand for the feedstock. Current land use, such as row crops, hunting habitat or Conservation Reserve Program acres, competes with biomass crops. Creating demand for feedstock also requires construction of conversion facilities, which require financing in addition to the financing of the generation facilities. And, in the true spirit of the chicken and the egg conundrum, lenders and investors require a reliable, long-term feedstock source before financing a project.&nbsp;&nbsp;
 Prohibitively high costs are often cited as a major driver behind decisions to abandon biomass projects. Research into cost saving processes is currently underway. For example, it has been shown that denser fuel pellets offer cost savings but the drawback is that often the pelletization process results in significant feedstock loss. At the same time, the storage and transportation costs of denser pellets are significantly lower than other densification options, such as baling. Efforts to integrate biomass with traditional agriculture, for example through the use of crop rotation and agricultural intensification may lead to yield increases and price reductions. Sustainable harvesting techniques, such as one-pass harvesting, can reduce harvest site fuel consumption significantly. Further, developing synergies between harvest and transport, for example by using self-compacting wagons for both harvesting and transportation, may also provide cost savings.&nbsp;
 Satellite processing may save costs by allowing certain preprocessing of the biomass to occur before transportation to the conversion facility. Drying and densification of the feedstock with mobile equipment that can be located close to the feedstock can reduce transportation costs. The establishment of regional processing centers that aggregate, process, store and supply biomass to the region could also provide significant cost reductions. In addition to drying and densification, regional centers could perform other preprocessing procedures to homogenize feedstock from several sources. Developers could decrease expenses associated with having multiple feedstock contracts. The aggregator, given its size, should be able to provide a more reliable supply, as a result of the large quantities it can handle.
 According to the chief executive officers of several major biofuel companies, advanced biofuel commercialization is only a few years away, even though many argue that this is overly optimistic. Biomass projects will need to find the right combination of the type and location of feedstock, cost effective harvest and transportation methods and demand for output.
 With an increasing number of states adopting or expanding their renewable portfolio standards, utilities can help drive demand for biomass projects. Often utilities assign more value to biomass projects because unlike wind or solar, it is base-load power. As technology evolves, we will see maturation of the supply chain through the introduction of satellite and regional processing facilities. These advances, in conjunction with more effective harvest techniques, the development of high-yield energy crops and advancements in processing and conversion technology can all work to move the industry forward. Author:Kate L. Bechen Member, Michael Best &amp; Friedrich LLP&rsquo;s Renewable Energy, Health Care and Business Practice Groups <a href="mailto:klbechen@michaelbest.com">klbechen@michaelbest.com</a> (414) 225-4956

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Addressing Obstacles in the  Biomass Feedstock Supply Chain

Cogent provides information management for Pinnacle Pinnacle Pellet has selected Cogent Industrial Technologies Ltd. to provide integrated automation, controls and information management system services for its 400,000-metric-ton per year greenfield pellet facility in Burns Lake, British Columbia. The plant will utilize residue from local sources and wood feedstock from the Hampton Affiliates Babine Forest Product mill located about 3.5 kilometers (2 miles) away. Construction began in mid-July and was expected to be finished at the end of November. Cogent has worked closely with Pinnacle in the past to define and design process control, information technology and automation systems for the company&rsquo;s five existing pellet production plants in British Columbia. ADF Engineering hires O&rsquo;Toole ADF Engineering Inc. with corporate headquarters in Miamisburg, Ohio, has announced the addition of Brian O&rsquo;Toole as a process engineer. O&rsquo;Toole is a recent graduate of the University of Dayton with a bachelor&rsquo;s degree in chemical engineering.&nbsp; With experience in research and process design, he will be focusing on energy conservation and process safety in the bioscience industry. Covanta Delano recognized for exemplary health, safety Covanta Energy, a wholly owned subsidiary of Covanta Holding Corp., announced its Covanta Delano biomass facility has earned star status in California&rsquo;s Voluntary Protection Program administered by the California Occupational Safety and Health Administration. VPP star status is the highest honor given to work sites with comprehensive, successful safety and health management systems. Sites such as Covanta Delano are committed to effective employee protection beyond the requirements of state or federal standards and participants develop and implement systems to effectively identify, evaluate, prevent and control occupational hazards to prevent injuries and illnesses. Acrowood sells equipment to China Acrowood has sold a complete chip thickness screening system and a slant disc chipper to a new bleached kraft pulp mill in China. Guangxi Jingdaxing purchased the Acrowood equipment in August for delivery in April. Acrowood&rsquo;s successful installation in 2006 at Sun Paper in Yanzhou, Shandong, China, of its advanced technology and proven components helped the mill management make its decision. A mill in Nanning, Guangxi, China, also purchased a year&rsquo;s supply of spare parts. The company has also sold an Acrowood model 8425 Slant Disc Chipper and a three-deck, Dual Drive Suspended Rotary Screen to Yunnan Yunjing Forestry &amp; Paper Co. Ltd. in Jinggu County of Pu&rsquo;er City in Yunnan Province.&nbsp; Ceres publishes energy crop production guides Energy crop company Ceres Inc. has published two new crop management guides that include the most current recommendations on the establishment, management and harvest of switchgrass and high-biomass sorghum. Frank Hardimon, Ceres sales director, says the recommendations in the guides are based on results from the company's extensive trialing network as well as its involvement in bioenergy projects. Published under the company's Blade trade name, the free guides titled &ldquo;Planting and Managing Switchgrass as a Dedicated Energy Crop, 2nd Edition&rdquo; and &ldquo;Managing High-Biomass Sorghum as a Dedicated Energy Crop&rdquo; can be downloaded at www.BladeEnergy.com. Print copies can be requested by emailing info@BladeEnergy.com.&nbsp; BinMaster introduces MV multi-scanner system BinMaster Level Controls has introduced the MVL multiple scanner system that integrates multiple point measurement data from two 3DLevelScanners to cover a wide surface area and provide better inventory accuracy for large vessels. Designed specifically for the challenges of large bins, the BinMaster MVL system displays a visual representation of the material surface that shows high and low points in the bin such as cone up, cone down, sidewall buildup or bridging. Reports generated by the 3D software provide data such as volume as a percentage, in bushels, or cubic feet or meters; maximum, minimum and average levels or distances to product; weight in U.S. tons, pounds or metric tons; and historical logs of bin measurements. AgriLab installs second heat recovery system AgriLab Technologies LLP has completed installation of its second major project in North America. As the world&rsquo;s agricultural and waste management industries seek cleaner and greener tools for curbing global warming and saving valuable organic resources, this company has perfected heat capture from organic waste through, static, aerobic composting. The newest installation is on a dairy heifer calf raising facility near Albany, N.Y. The facility maintains 2,000 head when full. The composting and heat recovery system will virtually eliminate the farm's dependence on propane, while dramatically reducing diesel, electric and grid-based energy dependence. Forty percent volume reduction will save on equipment, fuel and man-hours to field apply compost. Martin Engineering offers new conveyor cleaning blade A new cleaning blade for use on vulcanized conveyor belts features a special polyurethane blend and tungsten carbide tip to deliver service life two to three times longer than conventional urethane blades. Designed to provide excellent cleaning performance immediately, avoiding any break-in period, the QCM #1 MT Pre-Cleaner from Martin Engineering maintains consistent tension without frequent adjustment, requiring retensioning just twice a year in most applications. The blade can be used at belt speeds up to 900 feet per minute (4.6 meters per second) and there is no limitation to the type of material on which it can be used.&nbsp;&nbsp; HEI unveils new AD technology Hoffland Environmental Inc. has introduced a unique piece of heat recovery equipment that optimizes the output of biogas from anaerobic digesters. Called the &ldquo;hougulay,&rdquo; it is a piece of proprietary process equipment that is used to facilitate high production of biogas. The hougulay was first developed and used at HEI&rsquo;s hog-manure-to-biogas-to-electricity plant located on the island of Cyprus where agricultural waste is used to generate 1 megawatt of power. The size of a hougulay, its internal design and components, its flow rates&mdash;both the heat and material balances across the unit&mdash;are optimized features that are esoteric to any kind of feedstock entering the plant. Critical to the design and engineering of the hougulay is an understanding of basic heat transfer equations including thermal transient analysis. Also, hougulay optimization depends upon knowledge (and on-line measurement) of the specific heat and/or heat capacities of the feedstock components. Natural Power enters biomass industry&nbsp; International renewable energy consultancy Natural Power recently announced the company&rsquo;s move to the biomass sector, further adding to its products and services provided in the wind, wave and tidal markets. A team of professionals across the biomass and associated industries have joined Natural Power&rsquo;s renewable energy experts at its global headquarters in Scotland. The biomass team led by Dan Gates, who has a forestry background with engineering and project management experience, joined Natural Power earlier this year and work has already been secured including due diligence services on a 15-megawatt biomass plant in England. Other projects range from private estates and large public sector clients to established developers who require development support across the biomass project life cycle. Bandit-sponsored race car finishes strong in Kansas NASCAR nationwide sensation Parker Kligerman delivered a valiant effort at the Kansas Lottery 300, taking the Bandit Industries/GetMoreVacations.com Team 42 Dodge Charger to 24th position despite a spinout on the final lap of the race. The number 66 car of Steve Wallace was the guilty party, tapping Kligerman on the final lap and sending him backward into the wall. Kligerman had been running in 11th spot after fighting back from being a lap down. He qualified seventh but fell back early on. Kligerman remained consistent through the run, holding near the end of the lead lap for most of the event. With the ongoing adjustments by the Team 42 crew, he was able to mount a strong comeback in the later laps, climbing as high as second before sliding just outside the top 10. Despite the crash, Kligerman was able to complete all 200 laps.

Brian O\&#39;Toole will be concentrating on energy conservation and process safety in his new position at ADF Engineering.

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BIN BUSTER: BinMaster\&#39;s 3DLevelScanners leave nothing to the imagination when it comes to bin contents.

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CLEAN SWEEP: Martin Engineering\&#39;s new blade has a long life and works with any material.

January 2011

Business Briefs

Business Briefs

Business Briefs

Business Briefs

Columns

A New Partnership to Promote Domestic Ethanol

Producers Seek Solid Boardsmanship, Community Goodwill

2011 Ins and Outs

Biofuels: A Market of Political Opportunities

Prevent Problems by Good Corn Grading

Replace Dichotomy with Unified Policy

Woody Biomass Use Doesn't Have to be Controversial

How Will Republican Leadership Affect Biomass and Other Renewables?

Embrace Bioheat

Bioheat 2011 in the 'New Normal' Economy

Featured

Always Above Board

Building Goodwill

Bogged Down

Pacific West Biomass Profile

BCAP: New and (Maybe) Improved

Cream of the Coppice

Coming Soon: New Processes

Bring Biodiesel Back to the Farm

Transforming an Industry

Contributions

Futures, Swaps Market Can Help Manage Risk

GHG Emissions Trigger New Air Quality Permitting Requirements

January 2011.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

Business Briefs

Columns

A New Partnership to Promote Domestic Ethanol

Producers Seek Solid Boardsmanship, Community Goodwill

2011 Ins and Outs

Biofuels: A Market of Political Opportunities

Prevent Problems by Good Corn Grading

Replace Dichotomy with Unified Policy

Woody Biomass Use Doesn't Have to be Controversial

How Will Republican Leadership Affect Biomass and Other Renewables?

Embrace Bioheat

Bioheat 2011 in the 'New Normal' Economy

Featured

Always Above Board

Building Goodwill

Bogged Down

Pacific West Biomass Profile

BCAP: New and (Maybe) Improved

Cream of the Coppice

Coming Soon: New Processes

Bring Biodiesel Back to the Farm

Transforming an Industry

Contributions

Futures, Swaps Market Can Help Manage Risk

GHG Emissions Trigger New Air Quality Permitting Requirements

January 2011