The Other Cellulosic Fuel
by Debra Fiakas CFA In an article posted in November I incorrectly named the product of Kior, Inc. (KIOR: Nasdaq) as cellulosic ‘ethanol’. Kior does indeed use cellulosic biomass - wood chips to be exact - but the company’s catalytic pyrolysis technology turns out crude oil that can be further refined into gasoline or diesel. Ethanol, on the other hand, is the product of a fermentation process. There is nothing new about catalytic pyrolysis - superheating in a container with no oxygen. Oil refiners have been fracturing large, complex hydrocarbons using heat and catalysts for...
Novozymes Ignites Yeast Wars
Novozymes (Copenhagen:NZYM-B; OTC:NVZMY) moved into yeast this week with a new organism, Innova Drive.
It’s saccharomyces cerevisae — the workhouse yeast that has been powering wine fermentation since the days of Noah and the Ark. But here’s a new strain engineered to cut fermentation times up to two hours, and yield boosts of up to two percent.
A 2% yield increase and a 5% faster rate of production — let’s illustrate it — would mean something like 7.1 million gallons per year of more ethanol from the same standard 100 million gallon nameplate plant. Retailing at up to $10 million dollars, per year (yes,...
EPA increases US Renewable Fuel Standard Volumes, But Only Slightly
Jim Lane In Washington, the U.S. Environmental Protection Agency announced final volume requirements under the Renewable Fuel Standard program today for the years 2014, 2015 and 2016, and final volume requirements for biomass-based diesel for 2014 to 2017. This rule finalizes higher volumes of renewable fuel than the levels EPA proposed in June, boosting renewable production and providing support for robust, achievable growth of the biofuels industry. “The biofuel industry is an incredible American success story, and the RFS program has been an important driver of that successcutting carbon pollution, reducing our dependence on foreign oil, and sparking...
Cosan: No Haven for Ethanol Investors
by Debra Fiakas CFA The stark reality of basing their business model on a food commodity has been brought into sharp focus for ethanol producers. The drought settling across the U.S. corn crop is helping drive up corn prices for hog producers, chicken farms and ethanol plants alike. Investors who simply must have a position in ethanol might think the sugarcane-based ethanol producers could offer a safe haven against the supply and margin squeeze that is certain to hobble GreenPlains Renewable Energy (GPRE: Nasdaq), Pacific Ethanol (PEIX: Nasdaq) and Poet (private), among others relying on corn feedstock....
Ethanol and Biodiesel: Production Cost and Profitability
For a number of years, this (now old and outdated, but) very useful chart has been in circulation in energy circles, mapping the supply of energy to the world by looking not at prices, but at production costs. For one thing, it goes a long way to explaining why the price of oil can tumble so quickly when there is a fall off in demand, and explains why OPEC is troubled by unconventional oil in a way it is not so bothered by other energy sources such as renewable fuels. Renewables not only have been traditionally at the...
The Green Plains Way
Jim Lane As the renewables industry searches for effective business models, a strong one emerges in its midst. We look at Green Plains (GPRE) and its businesses. A recurring theme among the 300+ delegates at ABLC Next this week in San Francisco is the recognition that successful companies change the world not science projects, or failed companies and that any route that leads across the Valley of Death to commercial success is the first step towards a sustainable economy, and that strong lead products are the oxen that get settlers across the desert. Renewable...
DowDuPont To Exit Cellulosic Biofuels
by Jim Lane
In Delaware, DowDuPont (DWDP) announced that it intends to sell its cellulosic biofuels business and its first commercial project, a 30 million gallon per year cellulosic ethanol plant in Nevada, Iowa. The Nevada project is still going through start-up.
In an official statement, the company said:
As part of DowDuPont’s intent to create a leading Specialty Products Company, we are making a strategic shift in how we participate in the cellulosic biofuels market. While we still believe in the future of cellulosic biofuels we have concluded it is in our long-term interest to find a strategic buyer for our...
Corn Fractionation Improving Ethanol Production
Ethanol and isobutanol producer Gevo, Inc. (GEVO: Nasdaq) is installing equipment in its Luverne, Minnesota plant to improve efficiency in corn processing. The company is leasing a proprietary corn fractionation or slicing process developed Shockwave, LLC based in DesMoines, Iowa. The new equipment is intended to increase by-product output, including feed protein products and food-grade corn oil. With sales of more valuable by-products Gevo expects to improve overall profit margins. Shareholders can expect to see results after the first quarter 2019, when the equipment installation is expected to be complete.
Shockwave keeps a low profile with no corporate website and no one to answer phone calls. However,...
ADM raises capacity of N. Dakota biodiesel plant
Archer-Daniels-Midland Co. (ADM) s increasing the capacity of a biodiesel plant under construction in North Dakota to 85 million gallons a year, a company spokesman said on Wednesday. ADM originally announced the plant in Velva would produce 50 million gallons of biodiesel a year using canola oil. ADM decided to increase capacity to take advantage of economies of scale, said Greg Webb, vice president of public affairs.
Corn Ethanol On The Chopping Block: Can Green Plains Escape?
by Debra Fiakas CFA Legislation introduced in the U.S. Senate has put corn-based ethanol fuel on the chopping block. The bill’s title says it all – Corn Ethanol Mandate Elimination Act of 2013. Put into place in 2005, the Renewable Fuel Standard required refiners and blenders to use 16.6 billion gallons of renewable fuel in 2013, of which approximately 13 billion gallons will be met through ethanol made from corn. Support for the legislation is coming from all quarters. It is not surprising that poultry, dairy and beef people would think this is a good idea,...
Where Are The Cellulosic Ethanol Gallons?
Jim Lane We've seen a number of high-profile cellulosic projects open in recent years, and not much ethanol being produced? Wondered why? Here are answers to your questions. As Jack Webb used to say on Dragnet, just the facts, ma’am. Fact one. There’s not much ethanol being produced at the new generation of cellulosic projects. Fact two. We have seen significant changes in senior leadership at a number of key developers. Industry rumor going around: Psst! These facts are linked! For sure, Dorio Giordano has been appointed CEO at Beta Renewables, Dan Cummings has been...
EPA’s 2018 Renewable Fuel Targets Disappoint Producers
In Washington, the Environmental Protection Agency released its final Renewable Fuel Standard renewable volume obligations for 2018. The agency finalized a total renewable fuel volume of 19.29 billion gallons , of which 4.29 BG is advanced biofuel, including 288 million gallons of cellulosic biofuel.
As the Renewable Fuels Association explained: “That leaves a 15 BG requirement for conventional renewable fuels like corn ethanol, consistent with the levels envisioned by Congress in the 2007 Energy Independence and Security Act. The 2018 total RFS volume finalized today represents a minor increase (10 million gallons) over the 2017 standards, and a modest increase...
Veridium Receives Order from South African Ethanol Producer for Corn Oil Extraction Technology
Veridium Corp. (VRDM.OB) announced its receipt of an order from Ethanol Africa for the use of Veridium's patent-pending Corn Oil Extraction System(TM) at Ethanol Africa's new Bothaville, South Africa ethanol production facility. Veridium's proprietary new Corn Oil Extraction Systems(TM) extract high grade corn oil from an ethanol by-product called distillers dried grain ("DDG"). Veridium's technology has the capability of removing up to 75% of the corn oil from within the DDG in two stages. I have been finding more signs that this looks like its a real company and not just a shell to take advantage...
The API Bushwhacks Ethanol
Jim Lane Who’s right, in the fight of their lives over E15 ethanol blending? Whose data’s a Looney Tune, whose is from the real-world? Yesterday the American Petroleum Institute, in an apparent impression of Yosemite Sam, held a press conference in DC to highlight a new report from the Coordinating Research Council on E15 ethanol blends. The report is here. The API: Blast your scuppers, now I gotcha, ya’ flea-ridden riff-raff! Use of the ethanol gasoline blend E15 may endanger fuel systems in millions of 2001 and newer vehicles,...
Cosan: Brazillian Sweetheart
by Debra Fiakas CFA The first thing we think about Brazil in the context of alternative energy is sugar cane and ethanol. In the last growing season Brazil producer 596 million tons of sugar cane, a feat that secured Brazil’s position as the largest sugar cane grower in the world. About 55% of the crop was used to producer ethanol and the balance ended up as sugar. Brazil’s sugar cane industry association has predicted that despite a severe drought, the 2014-2015 growing season will be even more productive with expected sugar cane production in the range 632...
A Disappointing Supreme Court Biofuel Decision. Why It’s Not Over Yet
By Jim Lane
The case
Last week’s decision stems from a May 2018 challenge brought against EPA in the U.S. Court of Appeals for the Tenth Circuit by the Renewable Fuels Association, the National Corn Growers Association, National Farmers Union, and the American Coalition for Ethanol, working together as the Biofuels Coalition. The petitioners argued that the small refinery exemptions were granted in direct contradiction to the statutory text and purpose of the RFS and challenged three waivers the EPA issued to refineries owned by HollyFrontier Corp. and CVR Energy Inc.’s Wynnewood Refining Co.
The case is HollyFrontier Cheyenne Refining, LLC v....
