Linc Energy: Making Synthetic Crude From Coal Downunderground
by Debra Fiakas CFA Gas-to-liquids is back on my radar screen after an article appearing in early March 2015 on Biofuels Digest described progress Emerging Fuels Technology (EFT) has made in perfecting the Fischer-Tropsch process to convert carbon-based feedstock to liquid fuel, otherwise called Gas-to-Liquids. Fischer-Tropsch often referred to as FT for short is a series of chemical reactions to convert carbon monoxide and hydrogen into liquid hydrocarbons. The reactions are triggered by a catalyst, usually cobalt or iron, and managed under high temperatures in a chamber or reactor. Some might consider it a neat trick...
Europe’s New Renewable Energy Directive
by Helena Tavares Kennedy
You may have heard that the European Parliament voted in favor of the RED II (Renewable Energy Directive) proposal in January. Probably the most notable (or at least covered in the news the most) was their decision to remove biodiesel made from palm oil from its list of biofuels that can count towards the EU’s renewables target from 2021.
It also voted that “biomass fuels consumed in transport, if produced from food or feed crops, shall be no more than the contribution from those to the gross final consumption of energy from renewable energy sources in 2017 in that Member...
Energy Destiny? Try Energy Density
By Jim Lane
ARPA-E has been working hard on feedstock diversity — so much so that we kid them about changing their name to ARPA-Agriculture — yes, from time to time they work on fuels, but not so much on energy density.
Too bad — because a moonshot-oriented mission aimed at transforming energy density sets up really well for revolutionizing the way we do lots of things. Like moonshots. And other ways we use transport fuels, all of us back here on the good Earth.
Density matters, that’s how we see it. Super-dense fuels are superfuels and they have a real place in our economy...
Green Star Products Unveils Advanced Biodiesel Reactor
Green Star Products Inc (GSPI) announced that they have developed and successfully commercially tested their advanced biodiesel reactor. GSPI reactors require an amazing two minutes to complete the biodiesel conversion reaction versus over one hour for the rest of the industry. This means that GSPI's processing rate through the reactor is at least 30 times faster than the rest of the biodiesel industry.
Earnings Roundup: Covanta, NFI Group, Green Plains Partners
by Tom Konrad, Ph.D., CFA
Earnings Season Continues
Below are three more updates on second quarter earnings which I've been sharing with my Patreon supporters. If you'd like to support my writing and see those thoughts in a more timely manner, consider becoming a patron. becoming a patron.
For everyone else, I'm reprinting those thoughts below.
Covanta Earnings
(published August 2nd)
Waste to energy company Covanta Holding Corp (CVA) saw most of its business recovering towards the end of the second quarter. Management is reluctant to predict if the positive trend will continue into the third quarter and for the rest of the year, but...
Honeywell’s UOP: a 5-Minute Guide
Jim Lane Based in: Illinois Business: Honeywell’s UOP has developed a renewable jet fuel processing technology, as well as a joint venture. UOP and Ensyn announced the formation of a new joint venture, dubbed Envergent Technologies, that will market technologies and equipment for generating power, transportation fuel and heating oil from biomass using pyrolysis. The joint venture will utilize forest and agriculture residues as feedstocks in a Rapid Thermal process, where feedstocks are heated in the absence of oxygen, to produce pyrolysis oils that can be utilized directly in heating oil or power gen. UOP...
Beyond ZEVs: The Negative Emission Vehicle
by Jim Lane
Wandering the halls at the BIO World Congress and later to be seen again at ABLC NEXT this November, we ran across one of the most interesting technologies relating to ethanol production and markets we have seen in a month of Sundays, perhaps two months’ worth.
The problem
First, let’s revisit the problem. There’s simply too much ethanol being produced for the markets to absorb, given the Trump Administration’s massive cutbacks in US ethanol targets —In the resulting massively oversupplied market, the inevitable has happened, ethanol producers, growers and the Midwestern economies are being crushed. And they thought they...
Why Aren’t First Gen Biofuel Companies Making Money?
Jim Lane On October 8th, Renewable Energy Group (REGI), the leading US biodiesel producer, announced unexpectedly that it now expects to report Adjusted EBITDA ranging from a loss of $2 million to a loss of $7 million. The company’s prior guidance for Adjusted EBITDA was a gain of $10 million to $15 million. The company expects to report gallons of biodiesel sold in a range of 60 to 63 million, compared to prior guidance of 55 to 60 million. The good news REG CEO Daniel Oh said that “Despite these fluctuations in our markets, we remain optimistic about...
Gevo: Are We There Yet?
by Debra Fiakas CFA The renewable chemicals and biofuel company Gevo, Inc. (GEVO: Nasdaq) is scheduled to report fourth quarter 2013 financial results on March 25th. Analysts have a couple of weeks to prepare questions for management during the earnings conference call. Top on the list has to be got to be about Gevo’s recent agreement to license its novel isobutanol technology to Porta Hnos of Argentina. Porta Hnos is a well established ethanol producer so if the license is consummated, it is expected that this partner has the ability to execute on plans to produce isobutanol for...
The Best Peak Oil Investments, Part IV: Gas-, Biomass-, and Coal-to-Liquids
Tom Konrad CFA There are many proposed solutions to the liquid fuels scarcity caused be stagnating (and eventually falling) oil supplies combined with growing demand in emerging economies. Some will be good investments, others won't. Here is where I'm putting my money, and why. This fourth part takes a look at the possibility of converting coal, natural gas or Biomass into gasoline or diesel we can use in unmodified vehicles. In the first three parts of this series, I looked at various substitutes for oil based transportation fuels: Biofuels and Biochemicals Vehicle Electrification...
Advanced Biofuels: I Love You, You’re Perfect, Now Scale
Jim Lane Codexis (CDXS) and Mascoma show that low-cost sugar is the key, as advanced biofuels moves from R&D into industrial era. There used to be a restaurant in lower Manhattan called Exterminator Chili. Decorated in Elvis garb, it served world-class chili for the enlightened chow hound, in three grades of heat: residential (hot), commercial (blistering), and industrial (melt steel in your mouth). The proprietors would have understood little about advanced biofuels and nothing about the importance therein of low-cost sugars. But they did understand that the bigger the scale, the hotter you were. And that the highest...
Codexis Moves to the Front With CodeXyme4
Jim Lane Compared to prior generations, CodeXyme 4 and CodeXyme 4X significantly reduce the cost of cellulosic sugar production for biofuels and bio‐based chemicals. In California, Codexis (CDXS) announced the launch of CodeXyme 4 and CodeXyme 4X cellulase enzyme packages for use in producing cellulosic sugar for production of biofuels and bio‐based chemicals. Codexis’ latest generation of advanced cellulase enzymes, CodeXyme 4 for dilute acid pretreatments and CodeXyme 4X for hydrothermal pretreatments, exhibits excellent performance, converting up to 85% of available fermentable sugars at high biomass and low enzyme loads. Combined with high strain productivity using...
Solazyme Breaks Up With Roquette
Jim Lane Solazyme and Roquette dissolve their nutritionals JV; Solazyme to accelerate under its own flag; stock plunges. What’s up? Who said “sorry?” on the way out the door? It was a terse announcement that crossed the wire early yesterday morning from Fortress Solazyme, without warning except perhaps to equity analysts that hopped on a hastily-arranged call. Solazyme (SZYM) and Roquette Frères were announcing the dissolution of their two-year old joint venture, Solazyme Roquette Nutritionals. The cause, “divergent views on an acceptable commercial strategy and timeline for the manufacturing and marketing of joint venture products” and in...
REG Sells More Biodiesel, Earnings Drop, Acquisitions Are Future Wild Cards
Jim Lane Biodiesel giant Renewable Energy Group (REGI) is up on gallons, down on dollars as market prices weigh on results. In Iowa, REG announced net income of $10.8 million for the second quarter on revenues of $332.9M, a drop from its Q2 2013 net income of $19.6 million, and a 13% drop in revenue despite an 11% lift in gallons produced. The company noted that net income was boosted by a tax benefit of $11.9 million, recognized primarily from the release of a valuation allowance resulting from recording deferred tax liabilities related to the...
EPA Administrator Scott Pruitt Resigns
by Jim Lane
In Washington, EPA Administrator Scott Pruitt has resigned.
US President Donald Trump announced the exit on Twitter, commenting, “President Donald Trump announced Pruitt’s exit, saying on Twitter “I have accepted the resignation of Scott Pruitt as the Administrator of the Environmental Protection Agency. Within the Agency Scott has done an outstanding job, and I will always be thankful to him for this.”
Deputy Administrator Andrew Wheeler becomes acting administrator.
The Digest’s Take
Elsewhere in the media, it is widely reported that Pruitt was undone by a growing number of controversies and investigations relating to his conduct as EPA Administrator, particularly relating...
A Deal A Day At Renewable Energy Group
They are hoopin’ it up in Ames, Iowa these days. Local producer Renewable Energy Group (REGI: Nasdaq) completed the acquisition of Dynamic Fuels, Inc., one of the first renewable diesel biorefineries in the country. The Dynamic Fuels facility located in Geismar, Louisiana has 75 million gallon annual nameplate production capacity. Renewable Energy Group (REG) already had eight other fully operational biorefineries with a nameplate production capacity near 250 million gallons per year. REG also has a demonstration plant in Oklahoma for renewable chemicals. It was a two-part deal. First REG struck a deal with for most of the...
