How To Make Biodiesel

Average ethanol rack prices hold steady, market seen heading up

admin — Fri, 17 Jul 2009 17:04:04 +0000

Ethanol prices rose marginally on many racks nationwide in the latest week, but retreating bids in southwestern markets rendered the average national price unchanged. The national average remained at $2.30 a gallon, according to surveys conducted by Ethanol & Biodiesel News. Market activity, though traders had reported a slight pick-up at the beginning of the week, was characterized by a lack of buying interest as blenders switch over to summer blends. Still, ethanol prices increased in most regions due to upward pressure from RBOB prices and expected demand for the summer driving season. Ethanol futures on the Chicago Board of Trade ethanol futures settled lower Monday in thin trading. The May contract ended down at $2.20 per gallon. June ethanol finished 2 cents lower at $2.13. Ethanol futures were seen trading higher Tuesday following the results of a weaker-than-expected corn planting pace in Monday’s U.S. weekly crop progress report. Yesterday, the U.S. Department of Agriculture reported that 4% of the U.S. corn crop was planted as of April 15, below the 8% planted last year and slightly beneath analyst expectations of 5 to 8% planted.

WAITING TO PLUG IN: Minnesota’s demand for green energy has surged beyond industry’s ability to keep up ? yielding short-term delays but long-term opportunities.

admin — Fri, 17 Jul 2009 10:04:07 +0000

Mar. 11–reen means go, right? Not necessarily. The wave of enthusiasm for green energy has changed the rules for environmentally minded Minnesotans. With demand soaring, today green means wait. Want to erect a wind turbine? Get in line. Collect a rebate for buying solar panels? There’s a waiting list. Construct a biodiesel factory? Install solar heating panels? Build an ethanol plant? There are delays everywhere, as green-energy industries try to ramp up to meet the booming demand. Yet those delays also are a powerful signal, telling investors and green-energy firms that there’s a lot of business to be had in Minnesota. “Minnesota is putting in place a very large market, and they (manufacturers) need to be able to supply the market,” said Beth Soholt, director of Wind on the Wires, a St. Paul-based wind- advocacy group. Among major turbine makers, she said, “I’m sure 2007 is sold out, and 2008 is almost sold out, and I know they’re booking into 2009 and 2010.” A spokesman for Gov. Tim Pawlenty, Brian McClung, confirms that two or three turbine manufacturers have made inquiries about establishing operations in Minnesota. Small wonder. Minnesota’s new renewable energy law could bring as many as 3,000 new wind turbines here, which would be a sixfold wind-power increase. Nor is the surge limited to wind. Analysts describe a great green wave of investment, innovation and entrepreneurship. Tom Halvorson, an investment banker in clean technologies at Piper Jaffray, sees this as a rare moment when consumer demand, business interest, government support, environmental concern and technological possibility are all flowing together. “This is a very unique convergence of all sectors of the economy that is driving tremendous growth,” Halvorson said. “Just across the board, we are seeing just tons of ideas. … The investing environment is right for a lot of these things to really blossom.” The reasons why are no secret: high oil prices, concern about global warming, continuing chaos in the Middle East, a public hunger for cleaner alternatives and a receptive political climate. Closer to home, there’s also a belief that states like Minnesota that produce no fossil fuels could be winners in a green-energy economy. “The governor feels that renewable energy can be an economic engine, and particularly so in parts of the state that could use the boost,” McClung said. Today the green engine has started in Minnesota, but it’s only inching along at 1 or 2 mph — a long, long way from meeting the fuel, electricity and heating demands of an entire state. So a frenzied ramp-up has begun, a period when supply and demand won’t necessarily match. The waiting lists have many causes. Solar electricity has faced material shortages and a wave of European demand. High oil prices turned biofuels into liquid gold, setting off a land-rush-style boom. Wind hasn’t yet developed the U.S. factories or transmission capacity to meet its improving fortunes. Solar heating systems are coping with local inspection and engineering delays. In the solar energy industry, “the installers we talk to right now are completely swamped with orders, and they want to hire more people,” said Noah Kay of the Solar Energy Industries Association, the trade group for solar electric firms. But some bottlenecks are improving. Last year’s solar-panel shortage has eased, which means Minnesota solar-installation firms, like Innovative Power Systems, can again buy them. If you want a state rebate on your solar-electricity system, however, there’s another line. A big wave of 2006 solar installations emptied the fund, said Lisa Trudeau of the Minnesota Department of Commerce. Officials are keeping a waiting list, in case the Legislature adds more money, which seems likely. Solar panels for water heating haven’t been as scarce, and back in 2005, a group of 17 homeowners in Minneapolis and St. Paul decided to band together to bulk-purchase solar systems. The group faced minor delays on equipment and installation, and six- to eight- week delays when they applied to Minneapolis for permits, said Justin Eibenholzl of the Southeast Como Improvement Association, which initiated the project. “When they saw a big group of people coming through, the city definitely wanted to err on the side of caution,” requiring that the panels be able to withstand 90 mph winds, Eibenholzl said. By the time the St. Paul homeowners applied for permits to install solar panels, the group had figured out ways to streamline the process. Now that the panels are mostly installed, the homeowners feel it was worthwhile, Eibenholzl said. But the experience showed him that if green technologies are to be widely adopted, “there’s still a lot of learning that has to happen.” Tim Gerlach, with the regional American Lung Association, ran into a similar learning curve when he began urging gas stations to install E-85 pumps that dispense an 85 percent ethanol fuel. He still occasionally hears of “a local fire marshal who’s never dealt with the fuel saying, ‘Wait a minute.’ ” But as E-85 grows more common, the initial skepticism wanes. And Gerlach tries to take the long view. “From our perspective, we’re not aiming at today, we’re aiming at five or 10 years from now,” said Gerlach, who has seen E-85 stations increase from 250 to 1,100 in two years. “It’s easy to get frustrated when you’re in the trenches every day … but you take a step back, and realize this is how things progress.” The ethanol boom began in 2005 when Hurricane Katrina sent oil prices soaring and Congress set nationwide production goals. Almost overnight, the industry became a hot commodity for Wall Street investors, hedge funds and global players. Construction firms were booked solid a year in advance, sometimes two years. The biodiesel industry also is booming, although the soybean- based fuel is earlier in its build-out. In 2004, the U.S. industry produced just 25 million gallons. By late next year, industry capacity could hit 2.5 billion gallons — a hundredfold increase. Analysts say that has spawned waiting lists at the premier design firms, a shortage of steel tanks, scarcity of qualified installers and other bottlenecks. “Everyone sees the opportunity at the same time, and they all jump in, and then things settle out for a while,” said Leland Tong, a biodiesel industry analyst with Marc-IV, an agriculture advisory firm. There are profound risks as these new technologies expand, including one that torpedoed renewable fuels back in the 1980s: oil prices could plummet and take down the entire sector. Or, concern about global climate change could ease, for technological or scientific reasons. Or, green energy could prove unreliable. Or there could be unexpected price shocks — as has happened to corn prices because of ethanol. But entrepreneurs big and small are plunging in nonetheless, seizing the opportunity to fill the gaps. Randy Hagen, a Minnesota turkey breeder and inventor, has just opened a plant near Alexandria that will manufacture solar-heating panels. His company is called Solar Skies. “There’s a supply problem that’s not going to match up with our anticipated demand,” Hagen said. “We’re trying to get ahead of the curve — literally betting the farm on it.” Hagen envisions apartment buildings, warehouses and office buildings using solar panels to heat their water. He concedes it’s not as glitzy as installing solar-electricity panels, but it’s much, much cheaper. “I fly into Minneapolis and look at all the flat roof space, and think, nobody’s got them (roof panels),” Hagen said. “That’s all potential.” The hybrid-car market offers some insight about the supply-and- demand tensions. Hybrid cars were once dismissed by Detroit automakers, but in 2000 Toyota introduced the Prius hybrid. It was so successful that, for years, buyers endured long waiting lists to snare a high-mileage car that also qualified for government incentives. Jon Lewis, a Minneapolis arts administrator, was interested in buying a Prius last summer, but was told he’d have to wait six to eight months. Then he found a dealership in Duluth where he could get a new Prius without much of a wait, if he didn’t mind going there to pick it up. Over the years, Toyota was eventually able to ramp up production, and other carmakers raced to get in the game. Today, there are a dozen models of hybrid cars, trucks or SUVs on the market, with more to come. More than a quarter-million hybrid vehicles were sold in the United States last year. And those hybrid-car waiting lists? They’re almost gone, even as sales of hybrid cars keep climbing. Tom Webb can be reached at twebb@pioneerpress.com or 651-228- 5428. Credit: Pioneer Press, St. Paul, Minn.

AB Enzymes develops cost-reducing enzyme for biofuels sector

admin — Fri, 17 Jul 2009 04:04:06 +0000

Germany’s AB Enzymes has developed a new enzyme product in its Rohalase line to enable higher yield of vegetable oil processing with a reduced need for chemicals - an innovation the company says will save energy and costs. The company says that the product, applied to canola, sunflower or soy seeds, results in higher yields the enzyme is helps facilitates a reduction in the amount of oil in the press cake and lower temperature at the press head - translating into reduced energy costs. In addition to marketing the ingredient for the food industry, the company believes that the development will hold benefits for biofuel production. “In addition to oil based fuels, this technology is ideally suited for biomass to ethanol conversion,” said CEO Aryan Moelker. AB’s other Rohalase products are aimed at wheat processing, including an enzyme called Rohalase SEP, for the degradation of viscosity-forming polysaccharides such as pentosanes and glucanes, which have a negative effect in wheat starch processing.

Clovis lands $16 million biodiesel plant

admin — Thu, 16 Jul 2009 21:04:13 +0000

Sep. 8–Clovis city commissioners gave the green light Thursday for a $16 million biodiesel plant to be constructed at the city’s industrial park. Commissioners approved their intent to issue industrial revenue bonds up to $15.3 million in connection with the proposed plant to be developed by ARES Corp. of Burlingame, Calif. According to Chase Gentry, executive director of Clovis Industrial Development Corp., ARES is looking at 10 acres in the industrial park, and will be its first tenant.Gerry Runte of ARES Clean Energy Business Unit told commissioners construction of the plant is expected to begin later this year and be operational by mid- 2007. Runte said the plant will produce 15 million gallons of product annually from refined soybean oil as feedstock, delivered by rail. The soybean oil will be processed with methanol and glycerin at the plant. Biodiesel is blended with regular diesel for retail sale, he said. Asked about water usage, Runte said the plant will use about 15,000 gallons daily, which officials from New Mexico American Water told him would be easily available, he said. Queried about odors, Runte told commissioners there would essentially be no foul odors since the soybean oil smells like vegetable oil, methanol vapors are collected, and the methanol itself is reused. He also noted glycerin has no odor. Runte said the facility will not generate any substantial solid waste. Gentry said the facility is expected to have 10 employees.ARES is a privately owned company founded in 1992, according to its Web site. Runte described it as a 500-person engineering firm and the fourth-largest engineering company in New Mexico, with operations in Albuquerque, Los Alamos and Sante Fe. Also at Thursday’s meeting, commissioners: –Prioritized their projects for state legislative capital outlay. The top five are wastewater effluent reuse, airport improvements and air-service enhancements, Martin Luther King Boulevard north-end expansion, Norris Street north-end expansion, and Wellness and Youth Development Center and Soccer Complex. –Tabled action on adopting a resolution to change the makeup of the Parks and Recreation Board because of a lack of consensus. –Named Commissioners Randy Crowder and Isidro Garcia to an Ethanol Plant Negotiation Task Force that will negotiate terms for the sale of wastewater to a new ethanol plant west of Clovis. The six-member task force also includes CIDC’s president, Lee Malloy, and Gentry as well as Clovis City Manager Joe Thomas and city attorney Dave Richards. Credit: Clovis News Journal, N.M.

Cash crop production helps attract industry

admin — Thu, 16 Jul 2009 15:04:13 +0000

Sep. 8–Vince Drendel of Evansville remembers when Rock County didn’t have many acres of soybeans. Drendel, 88, was the first president of the Wisconsin Soybean Association when it formed in 1972. He has seen cash crops grow in acreage and importance in southern Wisconsin. “Soybeans are awful good in the rotation of corn,” he said. “There’s a lot more grain farming now than back then.” The switch that many area farmers made from dairy to grain in the past few decades is a big reason that southern Wisconsin has attracted biofuel plants, said Jim Stute, UW Extension crops and soils agent. Regional developments include a biodiesel plant under construction in DeForest, proposed biodiesel plants in Evansville and Clinton, an ethanol plant under construction in Milton and an ethanol plant in operation in Monroe. Soybean oil is most commonly used to create biodiesel, while corn meal is used to make ethanol. Biodiesel officials say the area is attractive because Dane and Rock counties, and the entire south-central region of the state, are top soybean producers. “My best guess is because of the nature of our agriculture in the southern third of Wisconsin,” Stute said. “We tend to be more concentrated on grain production.” Soybean production in the south-central region has increased dramatically-from 1.6 million bushels in 1975 to nearly 18.5 million bushels last year, according to the U.S. Department of Agriculture. In Rock County, soybean production steadily increased from about 540,000 bushels in 1965 to more than 4 million bushels last year-a 644 percent increase. That makes sense because soybeans historically have been more prominent in the southern part of the state, Stute said. “As you get farther north, you see more dairy farms,” he said. “That’s not to say we don’t have a lot of livestock production, but more of the acreage is devoted to grain crops.” The continued growth of grain can be attributed partly to the fertile, productive land in southern Wisconsin and partly to the general shift of agricultural production that took root in the 1960s and 1970s, Stute said. “When the shift occurred towards more specialization of either dairy or cash grain, cash grain naturally occurred here,” he said. Biofuel plants in southern Wisconsin also will benefit from good roads and railroads that can transport corn and soybeans from the northern part of the state, said Bob Karls, executive director of the Wisconsin Soybean Association. Proximity to the Chicago market is also a factor, he said. “Wisconsin has such an excellent infrastructure to bring grain from the north down,” he said. “As it works its way down to the Illinois River, (southern Wisconsin) is a good stopping point to not transport it as far.” Construction of the state’s first soybean crushing facility would have a huge impact on farmers and biodiesel producers, analysts say. Farmers now transport nearly all soybeans out of state for processing, and biodiesel plants ship the soy oil back. Landmark Services Cooperative is studying the feasibility of building a crushing plant that would process 26.4 million bushels a year. It would be built next to the proposed biodiesel plant east of Evansville. It’s been years since Drendel farmed his 500-acre farm. He now rents it out. At one point, he grew 250 to 300 acres of soybeans annually. But he still sees the tremendous value in what a crush facility could do for area farmers. “This crush (facility) is what we tried to get a long time ago,” he said. It’s wonderful that a biodiesel plant will be built in Evansville, he said. “But they better be getting a crushing plant here, too.” Credit: The Janesville Gazette, Wis.

China Biodiesel posts 38% jump in profit for 2006

admin — Thu, 16 Jul 2009 10:04:05 +0000

London-listed China Biodiesel International’s net profit rose 38% to Yuan 37.1 million ($4.8 million) in 2006, from Yuan 27.1 million in 2005, owing to increased biodiesel production, the company said April 16. China Biodiesel’s biodiesel production rose 32% to 22,866 mt for the year. Most of the output was sold on the domestic Chinese market, although exports also started last year to South Korea and Norway, the company said. China Biodiesel has almost finished building a 30,000 mt/year facility at Longyan, and work is also underway on a 50,000 mt/year facility in Xiamen, where production is expected to start in third-quarter 2007.

Ethanol use for biodiesel studied

admin — Thu, 16 Jul 2009 04:04:01 +0000

Mar. 13–Processing ethanol into methyl ester to make biodiesel is being considered as a way to absorb an oversupply of ethanol, according to Metta Buntherngsuk, the director-general of the Department of Energy Business. Local production of ethanol currently stands at 700,000 litres per day. But demand for ethanol to produce gasohol 95 is only 300,000 litres per day, leaving 400,000 litres per day as a surplus. Local ethanol supplies are expected to reach 4.8 million litres per day over the next few years from 26 producers who have been licensed since 2005. Based on gasoline demand nationwide of 20 million litres per day, demand for ethanol would be only two million litres per day if all regular and premium gasoline supplies were to be phased out of the market in favour of gasohol. The producers who obtained licences were counting on being able to tap heavy demand for gasohol, as the previous government had intended to end sales of premium gasoline this past January. However, the interim government reversed that decision, saying that gasoline would remain available as long as there were cars that could not use gasohol. Most vehicles made before 1995 cannot use gasohol, and even the makers of some new vehicles advise owners against using the fuel. Efforts to process ethanol, currently made from molasses and cassava roots, into methyl ester are aimed at reducing the glut on the market. Previously ethanol was also mixed with regular gasoline (octane 91 petrol) to make gasohol 91. “Whether methyl ester processed from ethanol can be mixed with diesel in a 5 percent proportion to make biodiesel, known as B5, will depend on [a feasibility] study,” said Mr Metta. If the study proves that methyl ester from ethanol could be mixed with diesel, it could help eliminate the ethanol surplus since existing diesel demand is 2.5 million litres per day. Earlier, a group of ethanol suppliers urged the government to help address the ethanol glut since new plants would add one million litres per day of ethanol this year. Last week, oil companies stepped up efforts to promote gasohol by offering free maintenance to motorists who could prove that using gasohol 91 or 95 had harmed their engines. Petrol stations will soon be equipped to sell gasohol 91 to help push up gasohol demand to eight million litres per day in the near future. An industry source said he supported the government’s plan to phase out premium gasoline from the market, which would in turn would help increase gasohol 95 demand, thereby significantly helping reduce the ethanol supply. The government should also look at ways to export ethanol as another measure to eliminate the surplus fuel, he said. Credit: Bangkok Post, Thailand

Conoco links up with Tyson in biodiesel venture

admin — Wed, 15 Jul 2009 15:04:33 +0000

ConocoPhillips has struck a deal with US food giant Tyson Foods to convert beef , pork and chicken fat from Tyson rendering plants into an ultra-low-sulfur diesel fuel at Conoco refineries, starting with the Borger plant in Texas. Production is expected to begin later this year, ramping up over the next 18 months to 175 million gallons annually, or 11,400 b/d, aided by a $1/gallon tax credit. The total is equivalent to roughly 3% of Conoco’s current diesel production in the US. Conoco expects to spend about $100 million on the initiative over the next three to five years, Tyson a bit less. Only a very small percentage of the biodiesel currently produced in the US comes from animal fat; the main feedstock is soybean oil. Conoco already produces biodiesel from soybeans at its Whitegate refinery in Ireland, where output now averages 1,000 b/d. The US major last week threw its support behind the US Climate Action Partnership, a group of big businesses and nonprofit groups seeking federal legislation to curb emissions (EC Apr.13,p11).

The first 100 per cent biodiesel tractors arrive in the UK

admin — Wed, 15 Jul 2009 07:04:11 +0000

THE first fleet of tractors in the UK to run on 100 per cent biodiesel have arrived at Cornwall’s Eden Project. The four New Holland machines will emit 70 per cent less carbon dioxide than the ones they replace. They will also cut carbon monoxide emissions by half, particulates by 70 per cent and hydrocarbons by 40 per cent. The hope is the 20 litres of fuel each tractor requires daily will be supplied by local oilseed rape growers. The project is part of charity’s drive towards achieving carbon neutrality at the site, just outside St Austell. Given that Eden is an environmentally-focused attraction all about man’s relationship with plants and the environment, the project will become an exemplar for other businesses. The hope is that it will also encourage more farmers in the area to not only look at growing biofuels, but also using ‘greener’ machinery. Eden’s Gus Grand said: “The environmental benefits of the tractors are not solely due to the fuel. The engines are more efficient than our old ones. With these new tractors we are trying to drive people’s interest in green motoring forward. If we can do it, so can others.” Farmers are in a unique position to benefit from the use, and production, of biodiesel. However, many feel there are insufficient incentives from the Government to help the market ‘take off’ and give the UK any chance of hitting its targets. Biodiesel will undoubtedly have a role to play in terms of climate change as well as providing an alternative to dwindling oil reserves. As such, the target, set out in the Renewable Transport Fuel Obligation (RTFO), is for 5 per cent of all UK fuel sold to be from a renewable source by 2010. This equates to around 1.35 billion litres of biodiesel. To achieve that, a total of 870,000 hectares of land would be required to grow 2.5 million tonnes of crops; the current capacity is 250,000 tonnes. New Holland’s Ron Perera said he was unsure there were enough incentives in place to achieve this. “It’s no good us alone shouting from the rooftops that we are ready in terms of biodiesel - it’s down to all of us,” he said. “But at the moment I’m not sure what incentive the obligation gives to farmers to drive tractors using 100 per cent biodiesel.” In practice, the RTFO will mostly be achieved by blending renewable fuel - like biodiesel and bioethanol - with fossil fuels. All existing vehicles are able to run on a 5 per cent blend of biofuel. This is the difference with the New Holland tractors at the Eden Project - they run on 100 per cent biodiesel adhering to the strict EN14214 standard, which ensures it is from sustainable European sources. At New Holland, they have committed to have 100 per cent biodiesel on all their equipment with Case New Holland mechanical engines. There was a rigorous selection process involving the main local dealers. This was all overseen by Fleetsolve, an independent sustainable transport consultancy. “The dealerships were really pushed,” said managing director Keith O’Connor. “The tractors needed to be able to operate on 100 per cent biodiesel without a perceivable loss in performance. “They also needed to have a positive and professional attitude, so we tested them on everything from last minute changes on spec to their ability to cope with emergency training. “We hope to use this as a testbed which can provide many more opportunities for agriculture in general.” By David Burrows Copyright: CMP Information Ltd.

First commercial biodiesel plant starts up

admin — Wed, 15 Jul 2009 00:04:13 +0000

Green Biofuels Ireland Ltd. began construction on Ireland’s first commercial scale biodiesel plant, a spokeswoman told Platts April 12. The EUR21 million ($28 million) facility, being built in County Wexford, will have an annual production capacity of 34 million liters (132,100 barrels/year) when it comes in operation in mid-2008. The plant will produce a 5% blend biodiesel fuel that will be sold through main oil distributors. Shareholders in the project, including local farmers, will supply the majority of raw materials including recycled vegetable oil, animal fats and rapeseed oil. Four thousand farmers from the Wexford co-operative will supply rapeseed oil and contracts have already been put in place with farmers to sow rapeseed for exclusive supply to the new facility. Green Biofuels Ireland was one of 16 companies granted a license to produce biofuels in Ireland under a government initiative to promote biofuel production. Under the scheme, which runs initially from 2006 to 2010, the 16 companies are exempt from excise duty. When at full capacity in 2008, the current scheme will result in 163 million liters of biofuels being placed on the Irish transport market, representing 2.2% of the total fuel market. The government has said that it will meet its EU target of 5.75% biofuels market penetration by 2010 and has set a target of 10% biofuel penetration by 2020. It is also committed to introducing a 5% biofuels obligation on fuel suppliers by 2009, which will be developed and put to industry and public consultation within the next 12 months.