Monday, December 31, 2012

Biofuels Digest’s 2012 Best Project (Thermochemical) Award: KiOR — Columbus, Mississippi

http://www.biofuelsdigest.com/bdigest/2012/12/31/biofuels-digests-2012-best-project-thermochemical-award-kior-columbus-mississippi/

| December 31, 2012 
There’s much to admire about KiOR’s first small commercial project – but three factors stood out for us.

It was built on time, on budget, and produces a drop-in, cellulosic product. That’s transformative on three levels — and with scale-up to the 60 million gallon level, the economics are expected to be as compelling as the story. For any producer of wood products, its one of the best bits of news to come down the pikeway in a long, long time.

READ MORE: All about the project, here.
 



Friday, December 21, 2012

USDA funds MSU biofuel study

http://www.clarionledger.com/article/20121222/BIZ/312220019/USDA-funds-MSU-biofuel-study?gcheck=1&nclick_check=1
10:16 PM, Dec 21, 2012  
 A team of Mississippi State University agricultural economists recently received U.S. Department of Agriculture funding to study policies impacting biofuel supply chains.
Keith Coble is the principal investigator for a project to develop a model to assess how state or federal policies might affect the development of the Southeastern biofuels industry. Coble will work with fellow MSU agricultural economists Daniel Petrolia and J. Corey Miller. Their work will evaluate the effects of risk, incentives and environmental policy on economic sustainability.

All three researchers are affiliated with MSU’s Sustainable Energy Research Center, which researches and develops environmentally and economically sustainable energy technologies that promote the growth of sustainable energy industries in Mississippi and the Southeast, according to an MSU news release.

The USDA’s National Institute of Food and Agriculture awarded the $273,120 grant through its Agriculture and Food Research Initiative.

Can KiOR soar?

http://www.biofuelsdigest.com/bdigest/2012/12/21/can-kior-soar/

| December 21, 2012 
 
By: Robert Rapier, Energy Trends Insider
Last month KiOR announced the start of production of biocrude from their Columbus, Mississippi plant. KiOR CEO Fred Cannon stated in an earnings call that when the product shipped it would be “the world’s first cellulosic gasoline and diesel fuel products.” While I can immediately think of at least 4 other companies who previously made cellulosic diesel and/or gasoline — Choren , Rentech, Envergent, and Community Power Corporation — we can forgive Mr. Cannon for this oversight in his excitement.

Some readers may recall that a year ago I argued that KiOR’s then $2 billion market capitalization was much too high based on the technical risks, the value of competing companies, and the fact that ultimately they were more like an oil refiner than a high tech company.

Since that column was published, the market cap of KiOR has plunged to $636 million. But now that production has begun, I have been asked several times whether my opinion of KiOR has changed. 

Bear in mind that my view was never that KiOR had an unworkable or unscalable technology (although a number of incorrect or misleading facts about the company’s process were widely reported). But my view was that they still had a very rough path to commercialization, and their value a year ago reflected the irrational exuberance that existed across the sector. I still believe that KiOR’s odds for long-term success are long, but they have hired competent people to give them the best chance of making it.

Initial production is an important milestone, but other important milestones are ahead. Many pitfalls await, and most companies in this space will fail to navigate them. But their technology is legitimate. Further, the Department of Energy forecast earlier this year that while the current cost to produce gasoline from pyrolysis oil is well above the cost to produce gasoline from petroleum, by 2017 the cost of pyrolysis-based gasoline is projected to fall to $2.32/gallon.

Biofuels Digest reported that KiOR’s projected production cost upon scale-up in 2013 would be $5.95/gallon. Further projections are that as they proceed up the learning curve and scale further that the cost of production would fall to $3.73 per gallon in 2014, and then to $2.62 per gallon at full-scale.

The company faces risks around biomass costs, natural gas costs (a very important input which becomes clear when one notices that reported fuel outputs of 11 million gallons per year have much greater energy content than the reported wood inputs of 500 bone dry tons per day), and their ability to raise additional funds that will be required for continued scale-up.

As a result, I think KiOR’s share price will continue to be volatile. In the short term, continued incentives for 2nd generations biofuels will help ease their burn rate. But as long as government support of 2nd generation biofuels remains after the fiscal cliff dust settles, KiOR has a realistic chance of crossing the Valley of Death and becoming a company that could maintain a viable business.

This article was republished with permission from Consumer Energy Report under a content partnership with Biofuels Digest, and originally appeared in Energy Trends Insider, a free newsletter from Consumer Energy Report focusing on financial and investment issues in the energy industry.

Tuesday, December 18, 2012

University of Georgia Researchers to Examine Public Opinion on Biofuels Industry in Southeast

http://www.biofuelsjournal.com/info/bf_articles.html?ID=129046

Date Posted: December 18, 2012

Athens, GA—Public opinion and local support may very well be the linchpins that determine the future of bioenergy in the United States.

The Southeastern U.S. is poised to become a major producer of bioenergy, and a wide range of bioenergy technologies are now in various stages of development in the region.

Will residents support the new ventures?

Who will grow the biomass?

Will those in established industries fight against it?

These are but a few of the critical questions that citizens, policymakers and investors must answer if bioenergy is to become a viable alternative to fossil fuels.

Now, researchers from the University of Georgia and the U.S. Forest Service are conducting studies in locations throughout the biomass-rich Southeast to find answers to these questions and more.

They hope their unique method of investigation, using a mix of complementary ethnographic methods, will provide a detailed understanding of public opinion about bioenergy while also providing policymakers and business owners with the information they need to make sustainable energy production thrive in their communities.

"We're planning to work on the ground throughout the Southeast," said Sarah Hitchner, a co-investigator and post-doctoral research associate at UGA's Center for Integrative Conservation Research.

"A lot of people talk about biofuels as being an obvious win-win, but it's more complicated than that."

Beginning in Soperton, Ga.-formerly home to Range Fuels and now the Freedom Pines Biorefinery owned by LanzaTech-and then moving on to other areas in Georgia, Alabama, Mississippi, Louisiana, Florida and North Carolina, the researchers will participate in the daily activities of community members and conduct in-depth interviews with a variety of stakeholders, such as landowners, industry representatives, potential employees and county commissioners.

"A big part of this kind of research is to listen to as many perspectives as possible," said Peter Brosius, professor of anthropology in the Franklin College of Arts and Sciences, director of the Center for Integrative Conservation Research and co-investigator in the study.

"From there you begin to see patterns emerge."

This approach, which allows researchers to develop familiarity and rapport with community members over an extended period of time, gives them a more detailed understanding of the various points of view that might not be fully captured by other less comprehensive research methods such as phone interviews or mail-in surveys, Brosius said.

"Researchers across the world have been developing technologies for the conversion of biomass resources into energy and fuels, but we don't have a very good understanding of the effects that a large-scale biomass energy industry may have on the communities involved," said Ryan Adolphson, director of public service and outreach in the College of Engineering and associate director of the Bioenergy Systems Research Institute.

Adolphson works with Georgia companies and state and federal policymakers on bioenergy industry development.

"This study will make great strides toward helping us understand those effects and assist in the development of a more effective biomass energy industry," Adolphson said.

Supported by a grant from the U.S. Department of Agriculture's National Institute of Food and Agriculture, which funds research projects on sustainable bioenergy through its Agriculture and Food Research Initiative, this integrative research aims to explain not only whether people support or oppose bioenergy development, but also what led them to form their opinions and what policies, institutions and events may have influenced their decisions.

"USDA and President Obama are committed to producing clean energy right here at home, to not only break our dependence on foreign oil, but also boost rural economies," said Agriculture Secretary Tom Vilsack.

"These projects will give us the scientific information needed to support biofuel production and create co-products that will enhance the overall value of a bio-based economy.

"Today, with a strong and diversified U.S. agricultural sector, the American automobile industry has a greater incentive for expanding use of bio-based products while supporting good-paying jobs here in the United States."

The researchers stress that as alternative fuel and sustainable industry grow, it will become increasingly important for potential companies to identify and understand the social and economic factors working for and against new ventures.

"This research has the potential to inform the policy process, but we are also pioneering a new method that is applicable to other sustainability issues," Brosius said.

"There is a lot of activity right now in bioenergy with different plants being opened and a lot of proposed plants using a combination of private investment and government incentives to get started," said John Schelhas, a research forester with the U.S. Forest Service and project co-investigator.

"We're looking at specific sites where bioenergy development is taking place, and we're interested in talking with community members and landowners who have various degrees of investment and interest in bioenergy."

Ultimately, the researchers hope that this project will not only yield important information about the future of bioenergy in the South but also serve as a springboard for future research designed to examine the social complexities of bioenergy development by investigating diverse perspectives and interests within the communities in which these new and proposed facilities are embedded.

"It's essential to understand the way people perceive, understand and talk about biofuels as bioenergy industries develop in this region," Schelhas said.

"And it seems like we will be able to provide more clarity about that."

For more information, call 706-542-5222.

Sunday, December 16, 2012

Greener planet is goal for 3 startups

http://www.equities.com/news/headline-story?dt=2012-12-16&val=832224&cat=material

By Julie Wernau, Chicago Tribune McClatchy-Tribune Information Services

Dec. 16--If the glut of companies billing themselves as "solutions" providers is any indication, the world has no shortage of problems.

Green tech companies take on some of the most complicated, difficult problems to solve. They tend to be problems created by our mere existence, chief among them our massive demand for energy. The more we rely on energy to power our electronics, our vehicles and our lives, the more pollution we churn into our land, water and air.

The Tribune checked in with three local green tech startups at various stages of development. They haven't changed the world yet, but they're working on it.

COMPANY: LanzaTech

PROBLEM TO BE SOLVED: Global warming, a huge challenge as energy demand is expected to double within 40 years.

FUNDS RAISED: $100 million

It may sound like sci-fi, but LanzaTech produces gas-eating "bugs" that don't require oxygen to survive.
In April, the company's microscopic bacteria began ingesting carbon monoxide from a steel mill in China. Carbon monoxide goes in one end of the bacteria and ethanol comes out the other.

With a few genetic tweaks, the bug can produce a wide range of fuels and chemicals from gases that companies spend money to get rid of. The idea, says Jennifer Holmgren, the company's chief executive, is to trap nasty gases that float from steel mills, power plants and chemical factories, turning them into products that are useful and profitable.

The company recently inked a deal with Petronas, the national oil company of Malaysia, to develop a modified version of the bug that takes in carbon dioxide and produces acetic acid, a chemical companies need to produce polymers used in plastics.

"Rather than trying to sequester carbon deep into the earth, we will 'bury' it in a chemical," Holmgren said. "In this way, companies can not only comply with emissions reduction requirements, but also generate revenue along the way."

When Holmgren talks about the technology's potential, she pulls up a map of the world, showing partnerships and agreements the company has with companies from Boeing Co. in Chicago and Kansas-based Invista, the world's largest nylon producer, to Indian Oil Co. in New Delhi and Mitsui & Co. Ltd. in Japan.

Out of the company's various projects, the carbon monoxide-eating bacteria are the furthest along in the path toward commercialization. This month, LanzaTech finished a demonstration project for China's largest steel manufacturer, Baosteel, at a plant near Shanghai.

LanzaTech successfully produced the equivalent of more than 100,000 gallons of ethanol per year from just a fraction of the carbon monoxide the company creates in the steel-making process.

"You're literally driving for miles watching this steel mill," Holmgren said, explaining its vast size -- and its potential to produce hundreds of millions of gallons of ethanol per year.

The technology creates a financial incentive to trap the gas rather than flare it, a common practice that produces carbon dioxide, which contributes to global warming. Through a series of pipes, the gas enters a vessel filled with the organism, which is floating in water. Fuel comes out the back end and is pumped through a distiller to create pure ethanol.

Because of the success of that demonstration, the steel company has ordered the first of what will eventually be three or four units, each about $80 million, that are each expected to produce 30 million to 50 million gallons of ethanol per year. Each unit pays itself back in under five years, Holmgren said.
"We don't want it to be green for green's sake. If it is, no one is going to use it," she said.

With 140 employees worldwide, LanzaTech doesn't have any revenues to report yet. Holmgren said LanzaTech expects to grow to profitability between 2013 and 2015.

Friday, December 14, 2012

USDA Grants Support Sustainable Bioenergy Production

http://www.nifa.usda.gov/newsroom/news/2012news/12141_afri_bioenergy.html

Media Contact: Jennifer Martin, (202) 720-8188

LANSING, Mich., Dec. 14, 2012—Agriculture Secretary Tom Vilsack today announced $10 million in research grants to spur production of bioenergy and biobased products that will lead to the development of sustainable regional systems and help create jobs. Vilsack highlighted the announcement today with a visit to Michigan State University, a grant awardee. The Secretary also pointed to a recent study released by Iowa State University (ISU), and funded by the U.S. Department of Agriculture, which finds that while the use of biobased products in automobile manufacturing is increasing, there are still many parts in the top-selling automobiles manufactured in the United States that may be replaced with biobased materials. 

“USDA and President Obama are committed to producing clean energy right here at home, to not only break our dependence on foreign oil, but also boost rural economies,” said Vilsack. “These projects will give us the scientific information needed to support biofuel production and create co-products that will enhance the overall value of a biobased economy. Today, with a strong and diversified U.S. agricultural sector, the American automobile industry has a greater incentive for expanding use of biobased products while supporting good-paying jobs here in the United States.”

USDA’s National Institute of Food and Agriculture (NIFA) awarded the grants through the Agriculture and Food Research Initiative (AFRI). AFRI’s sustainable bioenergy challenge area targets the development of regional systems for the sustainable production of bioenergy and biobased products that: contribute significantly to reducing dependence on foreign oil; have net positive social, environmental, and rural economic impacts; and are compatible with existing agricultural systems.

The long-term goal for the research projects, which were selected through a highly competitive process, is to implement sustainable regional systems that materially deliver liquid transportation biofuels to help meet the Energy Independence and Security Act goal of 36 billion gallons per year of biofuels by 2022. The programs focus on the many environmental, social and economic benefits and trade-offs associated with decisions and policies regarding the where, when, and how of national and regional biofuels development. Projects were awarded in four areas: 1) policy options for and impacts on regional biofuels production systems, 2) impacts of regional bioenergy feedstock production systems on wildlife and pollinators, 3) socioeconomic impacts of biofuels on rural communities, and 4) environmental implications of direct and indirect land use change.

Fiscal year 2012 awards include:
  • University of Arizona, Tucson, Ariz., $36,000
  • Arizona State University, Tempe, Ariz., $350,000
  • University of Georgia, Athens, Ga., $345,689
  • University of Florida, Gainesville, Fla., $496,996
  • University of Florida, Gainesville, Fla.,  $497,851
  • Boise State University, Boise, Idaho, $493,210
  • University of Idaho, Moscow, Idaho, $499,009
  • University of Idaho, Moscow, Idaho, $350,000
  • Michigan State University, Lansing, Mich., $349,695
  • University of Minnesota, St. Paul, Minn., $498,786
  • University of Minnesota, St. Paul, Minn., $349,996
  • Mississippi State University, Mississippi State, Miss., $273,120
  • University of Missouri, Columbia, Mo., $499,447
  • Lincoln University, Jefferson City, Mo., $94,258
  • Montclair State University, Upper Montclair, N.J., $349,963
  • Duke University, Durham, N.C., $349,084
  • University of Oklahoma, Norman, Okla., $466,534
  • Oregon State University, Corvallis, Ore., $349,624
  • Temple University, Philadelphia, Pa., $149,977
  • Pennsylvania State University, University Park, Pa., $348,959
  • Clemson University, Clemson, S.C., $50,000
  • University of Tennessee, Knoxville, Tenn., $350,000
  • Texas A&M University, College Station, Texas, $255,972
  • Texas AgriLife Extension, College Station, Texas, $499,619
  • Washington State University, Pullman, Wash., $349,993
  • West Virginia University, Morgantown, W.V., $349,952
  • University of Wisconsin, Madison, Wis., $496,109
  • University of Wisconsin, Madison, Wis., $345,327
  • USDA Agricultural Research Service, Peoria, Ill., $500,000

AFRI is NIFA’s flagship competitive grant program and was established under the 2008 Farm Bill. AFRI supports work in six priority areas: plant health and production and plant products; animal health and production and animal products; food safety, nutrition and health; renewable energy, natural resources and environment; agriculture systems and technology; and agriculture economics and rural communities.

Each award was made through a competitive selection process. An external peer review panel reviewed all proposals and made award decisions based on scientific merit to the best and brightest scientists across the nation.

The ISU report, Biobased Automobile Parts Investigation, shows that “the history of biobased automobile parts begins early in the development of automobiles themselves. During the 1930s, automobile pioneer Henry Ford began developing soy-based automobile parts.” The report goes on to highlight how a variety of U.S. automobile manufacturers are showing a greater commitment to exploring biobased options, and provides a variety of resources for policymakers and other decision-makers interested in exploring the issue. 

Creating new markets for the nation's agricultural products through biobased manufacturing is one of the many steps the Obama Administration has taken over the past four years to strengthen the rural economy. Since August 2011, the White House Rural Council has supported a broad spectrum of rural initiatives including a Presidential Memorandum to create jobs in rural America through biobased and sustainable product procurement; a $350 million commitment in SBA funding to rural small businesses over the next 5 years; launching a series of conferences to connect investors with rural start-ups; creating capital marketing teams to pitch federal funding opportunities to private investors interested in making rural connections; and making job search information available at 2,800 local USDA offices nationwide.

Policy Shifts Signal Growth Ahead for Advanced Biofuels

http://www.forbes.com/sites/pikeresearch/2012/12/14/policy-shifts-signal-growth-ahead-for-advanced-biofuels/



12/14/2012 @ 4:15PM

 Mackinnon Lawrence, Contributor

This has been a tough year for the U.S. biofuels industry: drought curtailed corn starch ethanol production and investment in the industry shrank to its lowest level in nearly a decade.  Headed into 2013, though, industry momentum appears to be regaining steam.  Led by advanced biofuels, the potential for expanding biofuels production has improved dramatically as Washington offers clarity on key policy issues.

Last week, in a vote on partisan lines, the U.S. Senate extended support for the military’s efforts to scale up advanced biofuels production.  As reported in Biofuels Digest, it approved an amendment offered by Senator Kay Hagan of North Carolina to repeal a section of the annual Defense appropriations bill that would have prohibited “the Secretary of Defense or any other official from the Department of Defense (DoD) from entering into a contract to plan,  design, refurbish, or construct a biofuels refinery or any other facility or infrastructure used to refine biofuels unless such planning, design, refurbishment, or construction is specifically authorized by law.”

Over the past year, the U.S. military has emerged as a key torchbearer leading the commercialization of advanced biofuels.  Spearheaded by the Navy, which signed a Memorandum of Understanding (MOU) with the U.S. Department of Agriculture (USDA) and Department of Energy (DOE) to develop cost-competitive advanced biofuels, the DoD has been a lone bright spot for an industry that has suffered from press blowback and investor retrenchment in recent years.

Only $84 Billion to Go

Prior to the Hagan amendment, the Senate approved another amendment, offered by Senator Mark Udall of Colorado, to repeal section 313 of the annual Defense appropriations bill.  Offered by Republican Senator James Inhofe of Oklahoma, Section 313 would have prohibited the DoD from procuring alternative fuels if they cost more than their conventional counterparts.  The section was introduced in response to the U.S. Navy’s highly criticized purchase of advanced biofuels from firms like Solazyme and Dynamic Fuels for its “Great Green Fleet” exercises off the coast of Hawaii, at an estimated price-tag of $15 per gallon.

These bills are expected to facilitate public-private partnerships and funnel much-needed capital to support advanced biorefinery construction within the United States.  In our Industrial Biorefineries report, Pike Research forecasts that at least 13 billion gallons of advanced biorefinery production capacity will come online over the next decade in the United States.  Although that falls short of the 21 billion gallons of advanced biofuels carved out under the EPA’s Renewable Fuel Standard (RFS), more than $60 billion will be invested over that same period.

With the minimum cost of scale-up to meet the advanced biofuel production mandate estimated at $84 billion, the industry still has significant ground to make up.  Although continued federal support will help assuage investor fears, uncertainties around feedstock supply and production profitability persist, translating into high levels of risk for investors.

Advanced biofuels, which address these concerns at least in part, have enjoyed a rising tide of policy support in recent months from Washington.  In August, Congress allocated $170 million to support the development of military biofuels and other defense initiatives, voted to extend key tax credits for advanced biofuel producers, and granted algae producers tax credit parity with other feedstock pathways.  Meanwhile, the recent commissioning of first-of-kind facilities from advanced biofuel producers KiOR and INEOS Bio are strong indicators of a maturing cellulosic biofuels industry.

 

British firm to build Miss., La. wood pellet mills

http://www.sfgate.com/business/energy/article/British-firm-to-build-Miss-La-wood-pellet-mills-4117774.php

Updated 1:57 am, Friday, December 14, 2012 
 JACKSON, Miss. (AP) — A British power generator will build a pair of mills in southwestern Mississippi and northeastern Louisiana to make wood pellets to burn for electricity in the United Kingdom.

A unit of Drax Group PLC will spend more than $200 million to build mills in Gloster, Miss., and near Bastrop, La., each capable of yearly production of 450,000 metric tons.

The company will invest $120 million in Louisiana, including $30 million to build an export terminal in Port Allen. Bar Littlefield, senior vice president of Drax Biomass International, says the investment in Mississippi will top $80 million.

Drax says it will hire 45 people in Gloster, 47 in Bastrop and 16 in Port Allen. On average in Louisiana, Drax plans to pay $35,000 a year, plus benefits. Pay levels for Mississippi were not released.

Loggers and truckers who will supply trees to be made into pellets will also get more work.
The company plans to start construction next year and begin production in 2014.

Wood pellets are burned by European power plants and industries in an attempt to cut carbon dioxide emissions. Because trees can be regrown, capturing carbon dioxide, burning wood is looked on favorably in attempts to reduce global warming. Drax owns the U.K.'s largest coal-fired power plant, producing 7 percent of the country's electricity.

In many cases, European power companies sign long-term contracts with American firms, which then build and operate the mills. Drax is taking a different course by building them directly.

Drax Biomass is focused on building and operating clean, safe manufacturing facilities that will support local economies, create long-term jobs and interface with local forest industry," CEO Chuck Davis said in a statement.

No pellet plants currently operate in Louisiana. In Mississippi, Enviva L.P. owns a 136,000-metric-ton plant in Wiggins and a 90,000-metric-ton plant in Amory. A number of such mills have been built across the Southeast, although paper mills often eye them warily because they compete for the same size trees.

International Paper Co. closed its Bastrop paper mill in 2009, slashing demand for pulpwood in the region. Gov. Bobby Jindal made new development in Morehouse Parish a priority when the closing was announced. "We committed to working together to get the people in this area back on their feet," Jindal, who made the announcement Thursday in Bastrop, said in a statement. "We talked about making the local communities in this area stronger than before."

Mississippi officials say loggers each year cut down trees equal to only half the amount of new growth, and they've lured other firms that use wood.

"With Mississippi's abundance of biomass resources, our state offers important advantages to businesses that rely on biomass for their operations," Mississippi Development Authority Director Brent Christensen said in a statement.

MDA spokeswoman Tammy Craft said Mississippi will provide Drax $2.63 million in Hurricane Katrina-related federal community aid to improve roads and other infrastructure, as well as $100,000 in cash. Also for infrastructure work, the town of Gloster will give $75,000 and Amite County will give $87,500.

Louisiana will give Drax $1.7 million in aid that wouldn't have to be repaid if the company meets job commitments. Drax is also eligible for benefits including a tax credit on capital investment worth up to $1.8 million, a 10-year property tax break and free job training.

The company will send pellets by rail from Bastrop and by truck from Gloster to Port Allen to load onto ships. In November, the Port of Greater Baton Rouge approved a lease with a Drax unit that will build three storage domes plus unloading conveyors on 10 acres of port property. The port expects revenue of $672,000 in 2014 and $1.6 million in 2015.




Wednesday, December 12, 2012

Georgia wood pellet export terminal will be largest in Southeast

http://biomassmagazine.com/articles/8408/georgia-wood-pellet-export-terminal-will-be-largest-in-southeast

By Luke Geiver | December 12, 2012
 
A Savannah, Ga. export terminal once used for the export of the paper industry product kaolin clay, will now give Enova Wood Pellet Group LLC a 1.35 million metric ton per year wood pellet export capacity at a single port. Enova Wood Pellet Group LLC, a subsidiary of Enova Energy Group LLC, has formed a long-term agreement with the port’s ownership group, Georgia Kaolin Terminals Inc., a subsidiary of Colonial Group Inc. Enova will use the port for storage and shipment of wood pellets sourced from its three production plants spread throughout Georgia and South Carolina. The pellets will arrive at the terminal via rail.

According to Mark Newhart, vice president of logistics and transportation for Enova, the facility will allow the company to export the largest quantity of wood pellets from a single location in the entire southeastern U.S. “This is a tremendous milestone for Enova to partner with a world class terminal operator such as Colonial Group,” Newhart said.

The Savannah terminal features 26 concrete silos, a railcar storage yard capable of handling 125 units, a modern material handling system and a 600 ton per hour railcar receiving system. The export portion of the facility also features dual ship loaders to minimize vessel shifting, an 800 ton per hour continuous vessel loading rate and a dust control system. Each month, the facility receives calls from three North European Bulk Carriers, according to the company.

Tuesday, December 11, 2012

Enova announces Port Agreement with Colonial Group

http://www.sacbee.com/2012/12/10/5044635/enova-announces-port-agreement.html

Published: Monday, Dec. 10, 2012 - 1:18 pm
/PRNewswire/ -- Enova Wood Pellet Group, LLC, a subsidiary of Enova Energy Group, LLC, has entered into a long term port agreement with Georgia Kaolin Terminals, Inc. (GKT) a subsidiary of Colonial Group, Inc.  The agreement provides Enova sufficient port capacity to export up to 1.35 million metric tons per year of wood pellets through Colonial's GKT facility in Savannah, Georgia.  Enova is currently developing a network of three wood pellet production plants in Georgia and South Carolina to deliver wood pellets to GKT via rail.

"This is a tremendous milestone for Enova to partner with a world class terminal operator such as Colonial Group, because it will enable Enova to export the largest quantity of wood pellets through a single port facility in the Southeast," according to Mark Newhart, VP of Logistics and Transportation for Enova.  "The terminal will provide a steady source of income and add new jobs to the community," he added.

GKT was previously used for the export of kaolin clay for the paper industry and is being converted for new opportunities in the biomass market.  Pratt Summers, Assistant Vice President of Operations for Colonial said, "We look forward to this long-term partnership with Enova for the storage and handling of their wood products and the diversification that it adds to our dry bulk terminals."


About Enova Energy Group, LLC. 

Enova Energy Group, LLC (www.enovaenergygroup.com) is headquartered in Atlanta, Georgia with an additional office in New York City.  Enova Energy Group was founded in 2009 with the goal of becoming a leader in the development and operations of renewable energy facilities in the United States.  Enova's inaugural project is a 37.5MW biomass to electricity project being built in Plainfield, Connecticut of which Enova is the majority owner.  This project will be operational in 2013 and was financed with over $225M in debt and equity arranged and sourced by Enova.

About Colonial Group, Inc.

Colonial Group, Inc. (www.colonialgroupinc.com) is a Savannah, Georgia based group of companies with a focus on energy and port-related activities.  Georgia Kaolin Terminal is a sixty acre bulk marine terminal with twenty-six silos and two shiploaders capable of loading Panamax vessels at 1,000 metric tons per hour.

Contact: Ben Easterlin, 1-770-821-6351

SOURCE Enova Energy Group, LLC

Read more here: http://www.sacbee.com/2012/12/10/5044635/enova-announces-port-agreement.html#storylink=cpy

Biomass power plant to open at Ga. paper mill

http://biomassmagazine.com/articles/8406/biomass-power-plant-to-open-at-ga-paper-mill

By Georgia Gov. Nathan Deal’s office | December 11, 2012
 
Georgia Gov. Nathan Deal has announced that Dublin-based Green Power Solutions will open a power plant in Laurens County, creating 35 permanent jobs with an initial capital investment of $95 million. This new biomass-fueled plant is the culmination of more than 18 months of collaboration between Beasley Forestry Products and Land Care Services, and it will support up to 200 additional jobs in the forest industry. Having already received approval from the Georgia Public Service Commission, the GPS plant is slated to be the largest renewable energy qualifying facility developed to date in Georgia.

“Georgia is increasingly becoming a go-to location for biomass-based energy ventures, so we are encouraged by Green Power Solutions’ decision to choose Dublin and Laurens County for this innovative renewable energy plant,” said Deal. “Companies such as Green Power Solutions do well in Georgia due in large part to our plentiful forestry resources and existing workforce trained for this industry.”

The GPS power plant will be located at an existing paper mill in Laurens County that was recently purchased by SP Fiber Technologies LLC. The planned capital expenditures will allow GPS not only to provide the steam required for the paper mill’s daily operations but also to generate 56 megawatts of electricity that will be provided to the electrical grid. GPS will provide base load power, which will be sold to Georgia Power Co. under a 20-year power purchase agreement.

“This is a great project that will help the local economy and advance the goal of energy independence by utilizing locally produced renewable resources,” said Tim Kennedy of Green Power Solutions. “We look forward to working with the community as the facility takes shape and begins operations.”

GPS will also construct a new wood yard in connection with the project and expects to utilize in excess of 1 million tons of round wood, bark and other woody biomass annually from the local area.    
“We are excited about the new partnership with SP Fiber Technology and GPS. SP Fiber’s commitment to sustainability growth in our community is without comparison,” said Jimmy Allgood, past chairman of the Dublin-Laurens County Development Authority. “The team at GPS makes this project viable for long-term growth in Laurens County. The Dublin-Laurens County Development Authority completely endorses this new technology for our community, state and nation.”

The Georgia Department of Economic Development collaborated with the Dublin-Laurens County Development Authority to manage this project. GDEcD Regional Project Manager Ryan Waldrep assisted Green Power Solutions on behalf of Georgia.

“Our state’s profile in the renewable energy sector is raised significantly when companies such as Green Power Solutions choose to do business in Georgia,” said GDEcD Commissioner Chris Cummiskey. “Our goal is to be recognized not only as the best place for business, but also as a strategic location for companies in the fast-growing biomass energy industry.”

Construction at the Green Power Solutions plant is scheduled to begin in May 2013, with commercial power plant operations beginning in 2015.

Cellulosic Biofuel to Surge in 2013 as First Plants Open

http://www.bloomberg.com/news/2012-12-11/cellulosic-biofuel-to-surge-in-2013-as-first-plants-open.html



Cellulosic biofuel companies will boost production almost 20-fold in 2013 as the first high-volume refineries go into operation, signaling a shift from an experimental fuel into a commercially viable industry.

Production of the fuel made from crop waste, wood chips, household trash and other non-food organic sources will reach 9.6 million gallons (36 million liters) in 2013, up from less than 500,000 gallons this year, according to data compiled by the U.S. Energy Information Administration and obtained by Bloomberg News.

That gain will leave the industry short of the government’s target for 1 billion gallons that gasoline and diesel producers are expected to blend into their products next year under a federal energy regulation. The industry may not meet those targets for another five years, and companies from Kior Inc. (KIOR) to Abengoa SA (ABG) are closing the gap.

Kior opened the first commercial cellulosic biofuel plant in the U.S. in October and will break ground early next year on its second facility, which will be able to produce about 40 million gallons a year, Kate Perez, a spokeswoman, said in an e- mail yesterday. “We believe that there will be ample opportunity in this space for many years to come,” she said.

At least four more companies expect to open refineries by the end of next year and two additional plants are scheduled to begin production the following year. They probably won’t make enough fuel to meet the 2014 targets, and the industry will “catch up in the next three to five years” to the requirements, said Adam Monroe, North America president for Novozymes A/S (NZYMB), the Danish company that supplies ethanol companies with enzymes.

“We’ve moved beyond lab and pilot and we’re now into commercial phase,” Monroe said in an interview. “You’re seeing the commercialization and the first wave of plants coming on.”

Fuel Law

Under the federal Renewable Fuel Standard, gasoline and diesel producers are required to blend 36 billion gallons of biofuel a year into their products by 2022, including 16 billion gallons of cellulosic fuel.

The targets rise each year on a schedule set by a 2007 energy law, and the Environmental Protection Agency has the authority to lower them annually to reflect the industry’s actual output. The EPA cut the 2011 cellulosic biofuel requirement to 6 million gallons from 250 million gallons and reduced the 2010 mandate to 6.5 million gallons from 100 million gallons.

It cut this year’s target to 10.5 million gallons from 500 million gallons and hasn’t revised its goal for 2013.

Kior’s Columbus, Mississippi, plant will eventually be able to make as much as 13 million gallons a year. Ineos Bio’s plant in Vero Beach, Florida, is due to go into operation this year with annual production capacity of 8 million gallons. Both will run at about 50 percent of capacity next year, according to an Oct. 18 letter from EIA.

Additional Plants

Abengoa is expected to open a plant next year in Kansas with capacity of 25 million gallons a year. Poet LLC is on track to open a facility in Iowa that will be able to produce 25 million gallons a year, and Fiberight LLC will open one in Iowa with about 4 million gallons of capacity.

The EIA didn’t include these facilities’ expected output in the 2013 forecast in its letter.

DuPont Co. is scheduled to open a facility in 2014 with annual capacity of 30 million gallons and Chemtex International, a unit of the Italian chemical company company Gruppo Mossi & Ghisolfi will open one with 20 million gallons.

Unrealistic, Unfair

The gap between the RFS requirements and the industry’s actual output prompted oil and gas trade groups to call for the policy to be repealed. The American Petroleum Institute filed a lawsuit in September calling the requirement unrealistic and unfair, and said Nov. 27 that the RFS is “unworkable” and should be repealed by Congress. The House of Representatives is considering a bill that would limit the EPA’s authority to set cellulosic biofuel targets.

Policy certainty is necessary to ensure investments continue in cellulosic biofuels, said Novozymes’s Monroe. Novozymes provides enzymes to Poet, Fiberight and Chemtex.

He compared the industry to standard, corn-based ethanol, which surged in production from 2005 to 2008. The RFS caps its requirement for corn ethanol at 15 billion gallons a year and the fuel has “almost completed in its mission,” he said.

To contact the reporter on this story: Andrew Herndon in San Francisco at aherndon2@bloomberg.net

WBA disputes forest biomass carbon payback, debt theories

http://www.biomassmagazine.com/articles/8405/wba-disputes-forest-biomass-carbon-payback-debt-theories

By Erin Voegele | December 11, 2012
 
The World Bioenergy Association released a new biomass fact sheet at the United Nations Climate Change Conference (COP18) in December. The fact sheet, titled “The carbon neutrality of biomass from forest,” asserts that theories on carbon debt and “payback time” of biomass are not credible. According to the WBA, these assumptions are based on the unrealistic assumption that trees are burned before they are grown.

The fact sheet notes that replacing fossil fuels with sources of renewable energy must be the core strategy utilized within future climate policies. Utilizing biomass from sustainably managed forests can play an important role in this strategy,” said the WBA in the document. “Several countries have demonstrated that a buildup of carbon in forests and an increase of forest biomass for energy is simultaneously achievable by good forest management practice.”

While some organizations have argued that woody biomass should not be harvested in an effort to increase carbon dioxide storage, the WBA stresses that strategy isn’t feasible because forests stop growing as soon as their trees mature. In addition, the stored carbon in those mature forests will be released through decay, even if the biomass isn’t burned for energy.

In the fact sheet, the WBA outlines four stages of growth that each tree experiences, including planting and first establishment, growth, maturation and decay. According to the paper, each tree constantly absorbs carbon dioxide by photosynthesis and release carbon dioxide through respiration.

“Until a tree progresses to its mature stage it is growing and absorbs more CO2 by assimilation than it releases by breathing,” said the association in the document. “In this phase the tree is a carbon sink. In the mature phase CO2 uptake and release are in equilibrium, the tree is carbon storage. As follows, during the decay phase, a tree will become a net carbon source.”

Rather than preventing the harvest of woody biomass, the association is urging governments to enforce sustainable forest management policies. According to the WBA, this can be accomplished through the use of sustainability criteria it has developed in combination with a biomass certification system.

A fully copy of the fact sheet can be downloaded from the WBA website.

Monday, December 3, 2012

LanzaTech to Convert Baosteel Mill Fumes Into Ethanol, CEO Says

http://www.bloomberg.com/news/2012-12-03/lanzatech-to-convert-baosteel-mill-fumes-into-ethanol-ceo-says.html



LanzaTech NZ Ltd., a closely held developer of transportation fuels and chemicals from waste industrial gases, plans to begin building next year an ethanol plant at a Baosteel Group Corp. steel mill in China.

The facility will use LanzaTech’s genetically-modified microorganisms to convert carbon monoxide-containing gas into as much as 10 million gallons of fuel-grade ethanol a year starting in 2014, Chief Executive Jennifer Holmgren said by telephone Nov. 30. Financing is being arranged by Baosteel, she said, and wouldn’t disclose the expected cost.

The project is a joint venture with Baosteel, China’s second largest steel manufacturer, and scales up a 100,000 gallon a year demonstration plant the companies installed at one of Baosteel’s mills near Shanghai. Results from that project “have shown that the scaling of the technology has been successful,” LanzaTech, based in Auckland, New Zealand, said in an e-mailed statement.

LanzaTech also has a venture with Shougang Group, China’s fourth-largest steelmaker, and industrial companies in India, South Korea, Taiwan and Japan are evaluating projects with the company. Holmgren told Bloomberg in January she may begin considering an IPO after successful operations of the Baosteel demonstration.

To contact the reporter on this story: Andrew Herndon in San Francisco at aherndon2@bloomberg.net
 
To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Sunday, December 2, 2012

Wood pellet production

http://www.newbernsj.com/opinion/letters/wood-pellet-production-1.58508

Published: Sunday, December 2, 2012 at 20:52 PM.
Local, state and regional leaders have been diligently working for the past several months to develop, on a major scale, wood pellet production to be exported from the eastern parts of North Carolina to at first the United Kingdom and eventually other parts of Europe.

These wood pellets would be used at first to produce electricity for British consumers. The impact to North Carolina from this production would be significant. The renewable wood fiber, or biomass as the Europeans refer to it, would come from the forests of North Carolina’s tidal plains. The production would involve North Carolinian loggers, truckers as well as wood pellet producing factories. The product would travel on North Carolinian rails to be exported from the North Carolina ports at both Morehead City and Wilmington. The demand for the product will continue as the need for clean energy will always be present. While the production of wood pellets will not cure all of our economic woes, it will nevertheless have a great positive economic impact to our region.

The wood pellets themselves are small and resemble poultry or rabbit feed. The wood pellets are formed out of macerated wood fiber that is heated and compressed into small cylindrical pellets. The pellets themselves typically require no artificial or added binders as it uses the natural lignin. Lignin is the natural glue that holds the cellulose in a tree together and is present in the wood already. It reconstitutes itself in the manufacturing process to hold the fiber material together in pellet form. The resulting pellets are desiccated and burn very cleanly creating very little ash. These pellets are easily transportable in rail cars, trucks and ships and can use automated machines for loading and discharging. Moreover, at the furnaces, augers and other types of stokers feed the fuel into the combustion chamber itself via programmed devices to burn the product most efficiently. The pellets can be burnt directly by the end user as is common in homes with small fire stoves used for heat. In addition, these pellets can be used on a large scale at electrical power generation stations where they are most often pulverized for best combustion to create steam to drive turbines that produce electricity.

Several industrial nations and the European community adopted measures in the 1997 Kyoto Protocols to reduce emissions as well as carbon footprint. Wood pellets used as fuel are considered carbon neutral, burn cleanly and are a renewable source of energy. The British are interested in having the wood pellets produced in Eastern North Carolina as it would be close to ports and not require much energy to transport as the wood fiber material should be collected no more than 80 miles from the ports. Moreover, as per the Kyoto Protocols, the potential clients are satisfied that the renewable wood fiber that makes up the bio-fuel could be collected without a detrimental impact to the environment. Dr. Clay Altizer of North Carolina Forest Service assured an audience at a recent October Wood Pellet information meeting at Morehead City that there is more than enough renewable wood material growing in privately held lands to more than meet the demand for the product. He reviewed charts of possible demand for the wood fiber that showed that the growth rate exceeded the potential harvest rate. The project’s main advocate Thomas W. “Tom” Bradshaw, the executive director of the N.C. State Ports Authority, explained at the same hearing that our state has two ports with existing rail connections that are capable of berthing ships for this product. Thus our state is in an advantageous position to profit from this opportunity.

Dr. Altizer went on to explain that much of the wood fiber that can be used to produce the pellets can be collected from the slash cutting of wooded lots that is now generally left to decay in the field. Dr. Altizer estimates that for approximately every ton of pellets produced requires two tons of cut green wood. Moreover, trees not well suited for cut lumber products or paper pulp can be readily turned into pellets thus maximizing the wood fiber yield from the cut lots. The wood material would be collected from the lots and transported via truck to local facilities that would produce the pellets. The pellets in turn would be discharged into covered hoppers and transported via rail to one of the two designated ports. The ports would store the fuel in large silos awaiting transfer to outbound ships.

The scale of the wood pellet undertaking is sizable. To meet the increased demand, additional wood pellet plants will have to be constructed. Port improvements and dredging will have to be made to facilitate docking of ships, storage of the material and automated loading of ships of this product. A fleet of approximately 75 covered rail cars will have to be procured to move the material from the plants located in the forests to the ports. Tom Bradshaw estimates anywhere from 8,500 to 17,500 of loaded 91 metric ton rail cars per year would make their way to the ports. He estimates five to six wood pellet trains a week averaging about a third to about half mile long to make it to the port at Morehead. Presently, according to the June 2012 Maritime Study, only three trains a week make it to Morehead via the North Carolina Railroad trackage through New Bern. North Carolina’s Eastern Region President John Chaffee welcomes the prospects of the plan’s potential positive economic impact. He is also monitoring the impact that the three-fold increase of rail traffic to downtown New Bern will have and supports a rail bypass concept around New Bern as well as proposed changes to rail routes around Morehead’s downtown.

The wood pellet proposal would have a positive impact to employment within the region. Bradshaw’s presentation estimated that upwards of 588 direct and indirect jobs could be realized if this plan comes to fruition. While the ports and the pellet facilities would not contribute a direct increase in great numbers of employment, there will be a large positive regional impact nonetheless when the entire operation is considered. Each rail car would require more than three truck loads of raw material. Tens of thousands of tons of slash cuttings and other renewable wood fiber material would have to be collected and loaded by loggers. Thus more loggers, equipment and trucks from all parts of the region would be needed. The increase in truck fleets and truck mileage would result in more business for fueling stations and demand for truck-part suppliers and service providers such as tires and general truck repair and maintenance. The added rail cars would require maintenance. New trains would require crews as well as motive power. Local rail carriers should expect increased profits for their services. There would certainly be more sales of heavy equipment to sustain the pellet production. All of these added profits and wages would trickle down the economy resulting in more patronage of local restaurants and merchants. The increased employment in the forested areas would also positively impact those areas housing markets. Chaffee also stated improved farm/forest income is important in preserving rural landscapes that are most compatible with the training missions of our military installations – preserving undeveloped lands under the flight paths of military aircraft.

N.C. State Board of Transportation Member Hugh Overholt from New Bern has opined that now is the time to execute plans and quit studying proposals. Director Bradshaw adopted this wood pellet concept from the Maritime Study and has assembled the necessary pieces to execute that solution. Our neighbors in Carteret recently adopted a resolution that states “The Town of Morehead City supports the efforts of the North Carolina State Ports Authority to maintain and expand a dynamic port and its efforts to increase the positive economic benefits for eastern North Carolina and its efforts to do so in an environmentally sustainable fashion.” Moreover, the North Carolina State Ports Authority has recently approved a $5 million appropriation for the design of the Morehead City facility which they want to see operational by January 2014. Now is the time to take heed of the same advice George Washington gave to Virginia Governor Benjamin Harrison, “A people... who are possessed of the spirit of commerce, who see and who will pursue their advantages may achieve almost anything.” I believe that it is likely that these combined forces will make this project a reality and a boon for all of us within our state, our region and our county.

Don Black, Hugh Overholt, John Chaffee, the N.C. Department of Forestry and the staff of Tom Bradshaw