ADM and Siouxland Ethanol Announce Marketing Agreement
Archer-Daniels-Midland Co. (ADM) and Siouxland Ethanol LLC are pleased to announce the formation of an ethanol marketing agreement. As part of this marketing agreement, ADM will market all ethanol produced by Siouxland Ethanol at its forthcoming 50 million gallon Jackson, Nebraska facility. Construction has begun and the plant is expected to be operational in early 2007. In addition to producing ethanol, the plant will produce an estimated 165,000 tons of distiller grains on an annual basis.
Corn Ethanol Emissions Savings Skyrocket
Jim Lane In Washington, an explosive new peer-reviewed report from ICF found that greenhouse gas emission reductions from typical corn-based ethanol production have soared to 43 percent compared to 2005-era gasoline. The report projects that by 2022, corn-based ethanol will achieve a 50 percent reduction, and could reach “76 percent in 2022 if there is more widespread adoption of optimal crop production and biorefinery efficiency.” The report, issued by the U.S. Department of Agriculture, based its revolutionary emissions math on a November 2014 study by researchers at Iowa State University, which found that farmers around the world have...
An Interesting Way To Play Cellulosic Ethanol
Last Friday (Feb. 2), the Globe & Mail's business section (the G&M is Canada's top national newspaper) ran an interesting piece by a senior business writer on cellulosic ethanol. I wish there was a way to view this article for free, but, unfortunately, the G&M charges for access to certain of its articles, and this is one of them. The gist of the argument is as follows: (a) forget corn-based ethanol, the future lies with cellulosic (yyaawwnn...); (b) deep down inside, Bush knows this; (c) to make cellulosic ethanol competitive, you need super-enzymes that speed up the process...
Biodiesel’s Nightmare: Renewable Diesel
Until algae farms move from the research and demonstration stage, biodiesel usage is going to be tightly constrained by available feedstock. The feedstocks for biodiesel are oils and fats, which naturally occur in quantity only in animals or the seeds of plants. As such, the quantity of oil available is much smaller than the sugars, starches, and cellulose which occur not only in the seeds and fruits of plants, but also in the stems and leaves, and can be used to make ethanol. Because sugarcane contains the best ethanol feedstock, sugar in the stem (not just the...
The Return of Advanced Biofuels
by Jim Lane
For several years now we have seen a significant number of players pivoting from biofuels towards smaller but higher-value markets in chemicals, nutrition, nutraceuticals, pharma, materials, flavorings, fragrances, cosmetics and more. We’ve reported on the proliferation of applications both in the Digest and in What’s Nuu? and indeed there’s been so much that’s Nuu, it’s been dizzying at times with all the spinning and twirling.
Capital costs and policy uncertainty have played their part, but the foot on the pedal for many has been oil prices. The scale of operations to compete with oil prices in the 2014-2017 period...
Darling’s Renewable Diesel Diamond
In July 2013, Darling Ingredients (DAR: NYSE) and its joint venture partner Valero Energy (VLO: NYSE) commissioned the largest facility in North America to convert waste animal fats into renewable diesel. The facility was strategic located adjacent to Valero’s petroleum refining installation in Norco, Louisiana.
At the time the facility was capable of pumping out 12,000 barrels of renewable diesel per day that could be dropped directly into Valero’s distribution network and blended with fossil fuel. Even at that production level the facility showed promise to deliver strong dividends back to its owners. The partners named their venture Diamond Green Diesel and celebrated the unparalleled achievement.
The two partners in Diamond Green...
The Brew Barons: Masters of advanced fermentation, driving the redefinition of biofuels: Pt ...
Jim Lane Will the new fermentation technologies completely shatter preconceptions about biofuels and bio-based products – and redefine the way in which Western Civ approaches the production of fuel, food, feed, and fiber? The new Brew Barons are working hard to make that so. See part 1 of 'Brew Barons', here. LanzaTech The LanzaTech process increases industrial energy efficiency by capturing waste gases (CO, CO2) and converting them to valuable fuels and chemicals. LanzaTech provides an opportunity to produce large volumes of low carbon fuel and chemicals at low costs using a countries own resources, reducing dependence on...
Neste Oil: a 5-Minute Guide
Jim Lane
Company description:
Neste Oil is a refining and marketing company, with a production focus on premium-quality, lower-emission traffic fuels. The company produces a comprehensive range of major petroleum products and is the world’s leading supplier of renewable diesel. The company has operations in 15 countries. Its growth strategy is focused on producing premium- quality renewable diesel fuel. The company had net sales of EUR 11.9 billion in 2010 and employs around 5,000 people.
Address:
Keilaranta
P.O. Box 95
00095 NESTE OIL
Year founded
Established in 1948
Annual Revenues:
Around EUR 11.9 billion in 2010
Major Investors
Neste Oil’s share is listed on the NASDAQ OMX Helsinki with the...
Did Trump’s EPA Cost Corn Growers $3.65 Billion In 2017?
by Jim LaneIn Washington, new evidence has appeared that a Trump Administration shift on US low carbon fuel policy may have cost US corn growers an estimated $3.65 billion.
The mechanism? A secretive effort by Administration officials installed at the US Environmental Protection Agency that destroyed an estimated 1.37 billion gallons of annual demand for low-carbon renewable fuels, in favor of fossil fuels.
Officials at the agency exploited a loophole in US low carbon fuel legislation that allows small oil refineries to gain hardship waivers in cases of severe distress from complying in full with US low carbon fuel laws. Now, evidence...
The Best Peak Oil Investments, Part VI: Barriers to Substitution
Tom Konrad CFA There are two types of solution to the liquid fuels scarcity caused by stagnating (and eventually falling) oil supplies combined with growing demand in emerging economies. The most obvious is to find a substitute to replace oil. These substitute have barriers to their use as a replacment petroleum based fuel. Understanding those barriers also leads us to the investment opportunities that arise from these substitutes. As I wrote the first five parts of this series, looking into potential substitutes for gasoline and diesel, it was clear that many potential substitutes would need...
Tax On E85 Renewable Fuel Soars
Jim Lane The US passed a dubious and historic milestone this week. The tax rate on E85 renewable fuels now exceeds 100% in some formulations. By comparison, the tax rate on E10 renewable fuel is running at an estimated 41% and the tax rate on straight gasoline is running at an estimated 35%. As Shakespeare observed in Measure by Measure, “some rise by sin, and some by virtue fall”. Now, the idea of a carbon tax is that governments are supposed to collect more tax against high-carbon fuels. Yet, policy in practice works the other way. The less carbon...
The 6 Hottest Ways to Alleviate Food vs Fuel
Jim Lane With the US drought, food vs fuel has returned as an issue. What alternatives are scientists, entrepreneurs developing to take us beyond the old debate? With the US drought, food vs fuel has returned as an issue. What alternatives are scientists, entrepreneurs developing to take us beyond the old debate? In the past week we published a report that the chairman of Nestle, Peter Brabeck-Lemathe, has called anew for a ban on making biofuels from feedstocks that can also be used in food production. The backdrop for Brabeck’s comments is the US drought, which...
Velocys Rocks With Red Rocks
by Jim Lane
In the United Kingdom, renewable fuels company, Velocys (VLS.L, OXFCF), received a “notice to proceed” action to commence manufacturing of the Fischer-Tropsch reactors and catalyst for the Red Rock Biofuels biorefinery that will be located in Lakeview, Oregon. RRB has commenced construction of the biorefinery, which will incorporate Velocys’ technology, and produce low- carbon, renewable diesel and jet fuel. Velocys’ role will be as a licensor for its technology to the project.
Red Rock’s construction is estimated to take 18 months, with operations planned to start in 2020. RRB is a subsidiary of IR1 Group LLC, which has 325 million gallons...
Biofuels & Biobased Earnings Roundup: Gevo
by Jim Lane
The Top Line. In Colorado, Gevo (GEVO) reported Q2 revenues of $9.4 million compared with $7.5 million in the same period in 2017. During the second quarter of 2018, revenues derived at the Luverne Facility related to ethanol sales and related products were $8.8 million, an increase of approximately $2.0 million from the same period in 2017. This was primarily a result of increased ethanol production and distiller grain prices in the second quarter of 2018 versus the same period in 2017. Non-GAAP cash EBITDA loss in the three months ended June 30, 2018 was $2.6 million, compared...
Will Renewable Energy Group’s Buying Spree Ever Stop?
Jim Lane Jim Lane is editor and publisher of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read Biofuels daily read by 14,000+ organizations. Subscribe here.
Will Petrosun’s Algae Biodiesel Grow on Investors?
by Tom Konrad Celluslosic Ethanol is all the rage. A less noticed, but significant "Biofuel 2.0" is biofuel based on algae. Follow the Biomass As I have consistently argued (see these recent articles on John Deere, Biogas, Cellulosic Ethanol vs Biomass Electricity, and Renewable or Green Diesel) the people most likely to make money from biofuel are not the processors and distributors (who compete directly with petroleum or other fossil fuel-based products, and so have little pricing power), but the producers of feedstock, which, like oil, is in very limited supply, and so they will have pricing power....
