Neste renewable diesel

Neste Sells 1 Billionth Gallon of Renewable Diesel

Neste reaches 1B gallons renewable diesel sale, runs in fire trucks, ambulances and school vehicles In Texas, Neste U.S., Inc. (NEF.F, NESTE.HE, NTOIF, NTOIY) is celebrating its 1 billionth gallon of Neste MY Renewable Diesel sold in North America which has effectively helped reduce more than seven million metric tons of greenhouse gas emissions in the Earth’s atmosphere. This is the equivalent of removing 1.6 million passenger vehicles from the road for one year. “There’s never been a better time to take a closer look at the steps we’re taking to ensure we’re leaving our planet in a healthier state for future generations,”...

EPA Slashes Corn Ethanol Targets Under Proposed Renewable Fuel Standard

Renewable Diesel Takes Smaller Cut Jim Lane “EPA continues to assert authority under the general waiver provision to reduce biofuel volumes based on available infrastructure,” says BIO. “This is a point that will have to be litigated. It goes against Congressional intent.” In Washington, the EPA released its proposed standards for 2014, 2015, and 2016 and volumes for renewable fuels. The volumes, as widely expected, include substantial reductions from the statutory standards in the original 2007 Energy Independence & Security Act. The EPA also released a 2017 proposed standard for biomass-based diesel. Yet, while attracting significant...

Senator Inhofe: 9x Cost for Biofuels Is Too Much, but 29x Was OK for...

Jim Lane Arch-critic of the cost of military biofuels Oklahoma Senator James Inhofe comes under scrutiny over earmarks for natural gas-based military fuels that cost 29 times more than conventional fuels. In Washington, the battle over advanced military biofuels took a turn for the bizarre this week, amidst revelations that a leading Senate sponsor of legislation to restrict Navy purchases of advanced biofuels, James Inhofe of Oklahoma, had previously secured earmarks for Syntroleum Corporation (SYNM) to produce natural gas-to-liquid alternative fuels which were priced 29 times higher than conventional fuels. Overall, Syntroleum reported receiving nearly $6...

Greenshift’s New Extraction Technology a 62% Improvement, but Challenges Abound

by Debra Fiakas CFA Source:  Chicago Board of Exchange Two months ago GreenShift Corporation (GERS:  OTC) ambitiously promised to introduce by the end of 2012 an improved corn oil extraction system.   The company has developed technology to extract oil more from corn used as feedstock by ethanol producers.  GreenShift claims its first system is recovering an incremental 0.8 pounds of oil per bushel of corn in current installations.  The new system  -  called COES  II  -  is expected to increase the oil yields to 1.3 pounds  - ...

Everything Going for KiOR – Just Not Very Fast

Jim Lane What’s up with the cellulosic biofuels leader? Good news, bad news? If you have ever spent any time reading up on ion thrusters a next-gen engine technology that NASA recently employed on the Dawn spacecraft you might chuckle when you think of the plight of poor KiOR (KIOR). The good news about ion thrusters is that they can ultimately achieve speeds of 200,000 miles per hour, ten times that of the Space Shuttle. The bad news is that the Dawn took four days to accelerate from zero to 60 miles per hour. Yep, zero...

Phycal Captures CO2 Funding for Biofuel

by Debra Fiakas CFA As part of its program to promote beneficial reuse of carbon dioxide, the Department of Energy awarded a total of $27.2 million ($3.0 million in the first phase and $24.2 million in a second phase) to a consortium led by alternative energy developer Phycal, Inc. (private).  According to the DOE website, Phycal is to develop an integrated system to produce biofuel from microalgae cultivated with captured carbon dioxide (CO2).  The biofuel is to be blended with other fuels for power generation or as drop-in diesel or jet fuel. It is a bit of...

Abengoa Bioenergy files for Chapter 11

In Missouri, Abengoa (ABGB) Bioenergy US Holding, LLC filed for Chapter 11 bankruptcy relief in the US Bankruptcy Court for the Eastern District of Missouri on behalf of itself and 5 of its US bioenergy subsidiaries. The companies involved in the filings include the US holding company; companies that own and operate four of Abengoa Bioenergy’s six US starch ethanol plants; as well as various support/service companies for Abengoa’s US bioenergy operations. This action follows the filing of two separate involuntary bankruptcy proceedings in Nebraska and Kansas earlier this month concerning the company’s starch ethanol facilities located in Ravenna and...

What $60 Oil Means For Biofuels

Jim Lane As if tough financing conditions and policy instability weren’t worrying enough for many observers, along comes a crash in global oil prices. One of the US-based Digesterati writes: “Most of the biofuels projects that I have worked on in the last 5 years have based their proformas on an $80/barrel oil price. With the recent dip and worldwide “power play,” I feel that investors as well as Boards of Directors will be really re-evaluating their business models, with most going overseas to markets that do not have the abundant reserves that we do. “If...

Fulcrum Bioenergy’s $115M IPO: The 10-Minute Version

Jim Lane The first zero-cost feedstock biofuels company comes to the public markets with its IPO. Like to see how this “Back the the Futuresque” technology unlocks value by converting household garbage into transportation fuel? Here’s our 10-minute version of the IPO from Fulcrum Bioenergy. In California, Fulcrum Bioenergy has filed an S-1 registration statement for a proposed $115 million initial public offering. The number of shares to be offered and the price range for the offering have not yet been determined. The company proposes to list under the symbol FLCM. UBS Investment Bank...

Rentech’s Wood Saw Hits a Knot

by Debra Fiakas CFA Last week Rentech, Inc. (RTK:  NYSE) revealed plans to idle its wood pellet production facility in Wawa, Ontario Canada.  To operate efficiently the plant requires additional repairs and upgrades beyond the replacement of conveyors that was completed in Fall 2016.  Beside the fact that the additional repairs were not included in the regular capital budget, Rentech management has apparently determined the expenditure is not economic given profits from Wawa.  When Rentech reports financial results for the fourth quarter ending December 2016, shareholders will be treated to an asset impairment charge for the Wawa facility....

REG: A Little ADM With Better Growth Prospects

Jim Lane At 8:30am, there’s a standing daily meeting of the key traders in Gary Haer’s sales group at Renewable Eenergy Group's (NASD:REGI aka REG) headquarters in Ames, Iowa. And they’re not kidding. Everyone stands. For 15 minutes there’s the rat-a-tat-tat of rumor, fact, competitors, pricing, spreads, the who’s selling what and where, the buying and selling of diesel, renewable diesel and biodiesel across North America. On most minds this Friday morning, what’s going to happen with corn prices? The USDA late on Thursday released its annual spring plantings report and it was a shocker. Corn acres...

Sweetwater and Pacific Ethanol Strike Supply Deal

Jim Lane In New York, Sweetwater Energy and Pacific Ethanol (PEIX) announced a project to supply customized industrial sugars for the production of cellulosic ethanol. The agreement supports the construction of a cellulosic biorefinery, contingent upon Sweetwater Energy obtaining the necessary financing and permits, at the Pacific Ethanol Stockton facility capable of producing up to 3.6 million gallons of cellulosic ethanol annually. Pacific Ethanol operates and manages four ethanol production facilities, which have a combined annual production capacity of 200 million gallons in Boardman, Oregon, Burley, Idaho and Stockton, California, and one idled facility is located in Madera, California....

Ethanol Sector Consolidation or Salvation?

by Debra Fiakas CFA The drumbeat of deals in the ethanol industry is sounding louder, or so it seems from the proliferation of notices in my e-mail inbox.  I received no less than four messages in one morning from ethanol producer Green Plains, Inc. (GPRE: Nasdaq) heralding the purchase of the Hopewell Ethanol plant in Virginia from FutureFuel, Inc. (FF:  NYSE).  The acquisition represents the ninth transaction for Green Plains in the last five years, adding another 60 million gallons in annual production capacity to Green Plains’ existing total capacity of 1.02 billion gallons.   Indeed, Green...

Current Structure of the US Ethanol Industry “Problematic”, Says the IMF

The International Monetary Fund released its Spring 2007 World Economic Forecast today. Fuel Vs. Food There is a short sub-section in Appendix 1.1 ("Recent Developments in Commodity Markets") that I thought might be worth sharing with you. If you download the PDF version of the report and scroll down to page 44, you will find the said sub-section under the heading "Food and Biofuels". In it, the IMF notes that food prices (as measured by its own food price index) rose by 10% in 2006, driven partly by a poor wheat crop in certain countries but...

Ethanol Stocks: Risks, Challenges, & Opportunities

The Great Ethanol Debate: Shoddy Economics all 'Round. Like many environmentalists, I'm not a big fan of the ethanol industry, especially corn ethanol.  From a net energy standpoint, even advocates agree that you only get a little more energy out than the energy you put in (Energy Return on Energy Invested or EROEI of 0.9 to 1.5, depending on whom you ask... some say it's much lower.)  At this point, most environmentalists simply decide that ethanol isn't sustainable enough for them, and go back to talking about photovoltaics (EROEI around 8, PDF) and wind (EREOI 30-70, PDF).  The last...
Gevo renewable fuel and chemical plant

Gevo’s Glow

Specialty chemicals developer Gevo, Inc. (GEVO:  Nasdaq) is celebrating a string of market wins for its renewable chemicals and fuels.  Since its beginning thirteen years ago this month, Gevo has been doggedly perfecting its synthetic biology and chemical technologies and turning it into products that are in demand by consumers and industry.  Last week shareholders were treated to an announcement by the U.S. Environmental Protection Agency (EPA) raising the amount of isobutanol for on-road use to 16% blend level from 12.5%.  As a producer of renewable isobutanol Gevo will be a direct beneficiary of the EPA action. Following directly on the heels of that news,...
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