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« September 2006 | Main | November 2006 »

October 31, 2006

Plug-ins getting a boost?

GmlogoThe internet is rife with speculation that General Motors is planning to make a series of new, more fuel efficient vehicles, including a Plug-in hybrid electric car, to compete with Japanese auto-manufacturers.

The idea being floating in the blogosphere is that GM will use some of its savings from cost cutting this year to make vehicles that match Japanese fuel efficiency.

GM's plans supposedly include a hybrid-electric vehicle with a plug-in battery that can be recharged at any regular power outlet, as well as more efficient fuel combustion engines, according to a report by Bloomberg.
BloomberglogoThe most intriguing aspect of these reports is that GM has created an engineering team to develop a plug-in hybrid, called the 'I-Car', short for 'Icon Car.'

(Plug-in hybrids, or PHEVs - Plug-in Hybrid Electric Vehicles -  are capable on reaching 60 mpg fuel efficiency by combining electric motors and fuel combustion engines. The motor switches to gasoline when the battery is drained. Regular hybrids use friction from braking and power from the engine to recharge the battery for the electric motor. The electric motor is used to idle in traffic and at speeds below 3-40 mph, while the traditional engine powers the vehicle at higher speeds.)

GM's CEO Rick Wagoner, and Vice Chairman, Bob Lutz, recently toured GM's hybrid development center in Troy, Michigan, to let researchers know the company is making such technologies a priority, according to Bloomberg's sources. Wagoner is said to have stressed the automaker is now fully committed to hybrid and other technologies.

The latest report confirms earlier rumors this summer that GM was looking seriously at plug-in technology. Demand for Toyota's hybrids, including the Prius (the top-rated fuel efficient vehicle on the road today), has helped the company boost US sales while GM and other US carmakers are slumping badly.

But GM still remains way behind the curve. Toyota is already working on a new generation of hybrids.
"Hybrid isn't an alternative. It will be the heart of most of everything we drive," Toyota's NorthAmerican chief, Jim Press, told Bloomberg in June. "There will be diesel hybrids, advanced gasoline hybrids, fuel-cell hybrids, ethanol hybrids," he said.

Click here to read the full story by Bloomberg's Jeff Green.
Click here for more info on lpug-in technology from the National Renewable Energy Laboratory (NREL).

- David Adams

October 30, 2006

Global warming - Show me the money!!

Our politicians and business leaders all seem to be suddenly talking about the need to do something about reducing our greenhouse gas emissions to stop global warming.

But what are they actually doing about it? Is the public being duped by pretty political speeches about being "addicted to oil," and clever marketing by seemingly energy conscious auto-manufacturers and oil executives?

The numbers tell a troubling story. According to a major front page New York Times story this morning, the US budget for tackling global warming has fallen from a high in the late 1970s! It's not just the US. A new report in the UK this week also calls for research spending to be doubled to avoid catastrophe.
Stern

According to Sir Nicholas Stern, who led the 16-month UK study, " We have the time and knowledge to act but only if we act internationally, strongly and urgently."

Here are some of the highlights of the NYT report:

* annual federal spending for all research and development in the US is half what it was in the 70s, falling to $3 billion from $7.7 billion (adjusted for inflation) in 1979. 
Energybudget2_190x126
* the Bush administration is seeking to raise spending in 2007 to $4.2 billion. That is far less than is needed, and much lower than current R&D spending on medical health and the military.

* federal spending on medical research has risen four times in the same period, up to $28 billion.

* military research spending has risen 260% to $75 billion.

* the private sector also isn't doing enough

The NYT concludes:

"....many experts, from oil-industry officials to ecologists, agree that the status quo for energy research will not suffice."
"Ultimately, a big increase in government spending on basic energy research will happen only if scientists can persuade the public and politicians that it is an essential hedge against potential calamity."

Click here to visit 'The Stabilization Triangle,' a simple power-point display by the Carbon Mitigation Initiative at Princeton University that looks at how to solve the greenhouse gas problem using technologies that already exist today.

Click here to read the New York Times article.

Click here to read BBC coverage of the the UK report led by Sir Nicholas Stern.

- David Adams

October 29, 2006

Chevron looking for CO2 advisor.

Economist_logo_1 My wife spotted this job advertisement in The Economist magazine: Carbon Management Advisor.
What's most interesting about the ad is who is offering the position. It would appear to be another sign that major oil companies are catching up with mounting global concern about greenhouse gas emisisons and global warming.
Logo_chevron_1
<<<< "Chevron Corporation one of the world's largest integrated petroleum companies, is seeking a Carbon Management Advisor to work in our San Ramon, CA headquarters with our corporate environmental group." >>>>

The job involves "...assisting in carbon market engagements, emissions reduction and energy efficiency improvement projects..."

The candidates requires 3-10 years experience in government, non-profits or the private sector.

Click here to visit Chevron's website for a full job description. Just click on 'jobs' and 'jobs search.'

- David Adams

Solar's rising demand.

Solar_pic2 Rising electricity prices and improved technology have boosted demand for solar energy in the last year, according to the U.S. Department of Energy's annual industry assessment.


According to the report by the Energy Information Administration (EIA) demand rose for solar panels and PV (photovoltaic) cells, despite the fact that prices for both also increased due to the cost of materials. "The solar industry has been able to absorb most of the rising material costs because it has become more flexible in its production methods and supply arrangements over the past years," the report says.
Solar_pic1_small
Domestic shipments of solar thermal devices rose 10.4 percent to 14.7 million square feet in 2005. Total shipments rose to 16 million square feet, a 13.7 percent increase over 2004. Exports surged 67.4 percent, while imports increased 22.1 percent. Florida and California accounted for 60% of total shipments.

Solar_pic3_small

Industry employment increased more than 11 percent in 2005 to its second highest level over the past 10 years.

Solar_pic6_small The shipments of PV cells reached a record high of 134,465 peak kilowatts in 2005, a substantial 72 percent increase from the 2004 record of 78,346 peak kilowatts, and was an increase of more than 176 percent from the 2003 level.   The more efficient thin-film solar system is fast catching up with the older crystalline silicone technology. Thin-film sales now account for nearly one-fourth of the PV market.

Among the market sectors, the commercial sector remained the largest sector for PV shipments, followed by the residential and industrial sectors. (See our recent Oct 18 solar post on Google and Oct 21 on GM.)

Click here to read about the report online at Renewable Energy Access.
Click here to read the full report, 'Solar Thermal and Photovoltaic Collector Manufacturing Activities 2005.' Questions about the preparation and content of this report may be directed to Peter Wong (peter.wong@eia.doe.gov).

- David Adams

October 28, 2006

Abengoa teams up with Dyadic on cellulosic ethanol.

Emalfarb_1 Here's some big news which could help speed up the commercial production of 'cellulosic ethanol,' considered by many to be the key to the future of biofuels.

Abengoa, the Spanish company which is one of the world leaders in ethanol, has invested $10 million in the Florida company, Dyadic International, in its quest to bring cellulosic ethanol to market.

Dyadic It's a huge step for Dyadic, a relatively small Jupiter-based company, that has been making a name for itself through its pioneeering fungal enzyme research (Click here to read my story in the St Petersburg Times, and another recent story by Michael Oneal in the Chicago Tribune.)

"We believe this validates the work we have been doing for a decade to make cellulosic ethanol a commercial reality," says Dyadic's CEO, Mark Emalfarb.

Abengoa claims to be the world's second largest ethanol producer with $3 billion in revenues. It has major investment in the corn-for-ethanol industry in the United States. Abengoa is widely considered to be at the forefront of the industry's efforts to boost the production efficiency of ethanol (and thereby its cost) by using plant waste (fibrous stalk material) which is currently discarded as residue in the production of ethanol.
Abengoa The technology already exists to convert the plant waste into ethanol, by extracting the cellulose. The challenge lies in pre-treatment of the tougher, fibrous waste material into a manageable form for the extraction of the cellulose. Until now this energy intensive phase in the process has been cost prohibitive.

Several other companies are working on different methods to breakdown the fibrous plant matter, including Iogen and Cellunol. But Abengoa's size, coupled with Dyadic's proven technology, could prove to be the winning combination.

The deal between Abengoa and Dyadic is a three-year research and development agreement involving a $10 million purchase of Dyadic stock by Abengoa Bioenergy R&D, Inc. Dyadic hopes to use the proceeds to develop a cost-effective enzyme production system using its patented C1 enzyme technology for commercial application in Abengoa's cellulosic ethanol production process.

C1 A press release announcing the deal includes this ringing endorsement of Dyadic's scientific work. "We recognized that Dyadic's enzyme technology, especially in the field of cellulosic ethanol, is state-of-the-art," said Gerson Santos-Leon, R&D Director of Abengoa Bioenergy. "Abengoa Bioenergy is looking forward to working with Dyadic in the development of large-scale enzyme production systems and manufacturing processes for use in the production of abundant low cost fermentable sugars from biomass, with initial focus on cellulosic ethanol production."

Emalfarb described the deal as a win-win for both partners. "We have brought the academic effort close to commercialization," he told me in a phone conversation today. He described it as a two-pronged attack, designed to improve the technology while at the same time applying it to the specific type of plant materials Abengoa believes are best suited to cellulosic ethanol production.
"They (Abengoa) are interested in helping the core technology get better and applying it to make the enzymes they need to get their plant material to produce ethanol," Emlafrab said. "They find a partner to get to where they want to go. That's great for them, and its great for us."

The deal is non-exclusive meaning that Dyadic is also free to seek other investors. The deal with Abengoa will certainly make Dyadic a lot more attractive to others interested in cellulosic ethanol technology. Emalfarb says several companies have shown interest, including big oil and agricultural firms. "This should be a catalyst, just as enzymes are, to other deals. The door is wide open."

Dyadic has been involved for a number of years in the research and manufacture of biological products using fungal strains to produce enzymes and other biomaterials. Its efforts have focused on a system for protein production based on the patented 'Chrysosporium lucknowense' fungus, known as C1. Besides ethanol, Dyadic's C1 technology also is being developed to facilitate the discovery and development of human antibodies and other high-value therapeutic proteins.  Dyadic currently sells more than 45 liquid and dry enzyme products to more than 200 customers in about 50 countries.

Abengoa Bioenergy, headquartered in St Louis, Missiouri, is one of the five business units of Abengoa, a listed company on the Madrid Stock Exchange and a presence in more than 70 countries.

- David Adams

October 27, 2006

Earthrace biodiesel boat in South Florida

Earthrace_1 The Earthrace has arrived in South Florida. And quite a sight it is too. It's arrival at the Fort Lauderdale International Boat Show has raised quite a bit of interest in the local media here, with reports in the Miami Herald in English and Spanish (see below).

For those of you not familiar with the Earthrace it's an attempt to circumnavigate the globe in record time on a futuristic biofuels powered boat. The boat uses biodiesel to power its twin 540-horsepower engines.

Click here to visit the Earthrace homepage.
Click here to read the article in the Miami Herald in English.
Click here for the Spanish article.

Mexico cleans up its fuels.

Mexico announced today it is introducing  new, low-sulphur fuels in an effort to reduce pollution.

The new, low-sulphur premium gasoline being offered at state-owned Pemex stations will contain 88% less sulphur. Low-sulphur diesel also being introduced will contain 97% less sulphur.

The new fuels will put Mexico on a par with standards set by its NAFTA partners, Canada and the United States. The move may help ease concerns by the United States, which in 2004 sought to block Mexican commercial trucks from operating across California and Arizona because they failed to comply with U.S. environmental rules.

Mexican officials say that wasn't entirely the reason for adopting the new fuels.
An economic impact study that looked at the costs of lost work days and reduced productivity from high rates of asthma linked to air pollution helped convince Mexico to switch to cleaner fuels, officials say. The black smoke produced from an engine running on high-sulfur diesel fuel, causes health and breathing problems such as asthma and helps create higher levels of smog.

My thanks to our friends at the Inter-American Dialogue for alerting me to this news. The Dialogue puts out a weekly 'Latin America Energy Advisor.' For more details, visit www.thedialogue.org 

- David Adams

October 26, 2006

The Small Car. Here to stay?

Smallcar_1 Years after Europe fell in love with the small car, could it be that a similar market is growing in the United States.
That seems to be the conclusion of an article in the New York Times special 'Cars' section Wednesday. The key factor seems to be higher gas prices which are turning consumers to more fuel-efficient vehicles. The smaller 'subcompact' cars are now outselling SUVs in the United States (2.5 million small cars are expected to be sold this year compared to 2.3 million SUVs).

There is a sustained interest in small cars in a way that there has not been since the early 1970’s,” Karl Brauer, editor in chief of Edmunds.com, a car-buying advice Web site, tells reporter Micheline Maynard.

A host of new small car models are hitting the market, including the Nissan Versa, Toyota Yaris and Honda Fit. BMW is also set to come out with a new version of the successful Mini Cooper. And the Smart Car is due to follow in 2008.
Smartcar
But American manufacturers look like they are going to be left behind once again. Ford says it has a small car "in development." Chrysler says it's looking for a Chinese partner to produce one. (Better get a move on guys!)

Car manufacturers hate small cars as they bring in far lower profits. A full-size SUV can turn a profit of up to $9,000, compared to only $400 for a 'subcompact.'

Click here to read more about the 'Small-Car Nation.'

Plug-in Hybrids "not read for prime time."
The Cars section also includes an article about plug-in Hybrids which apparently still have a long way to go to solve their technology problems. Plug-ins "are not yet ready for prime time," says Toyota's executive engineer for environmental engineeering, David Hermance. (great job title by the way!!)
The problem is that commercially available batteries do not have enough storage or durability to give good mileage range. The article suggests that a potential solution could be switching to more durable nickel-metal-hydride batteries.

Click here to read more.

Smaller, but how much safer?
The new breed of small cars are also being built these days with more safety features and stronger frames. Although advances in technology have been made, the best subcompact provides less protection than an identically rated vehicle that is larger and heavier, according to another report in
'Cars.'

Physics dictate and crash statistics show that small cars don’t offer as good of crash protection as their larger counterparts,” says David Zuby, a senior vice president for vehicle research at the Insurance Institute for Highway Safety. In a typical collision, he told 'Cars', “the heavier vehicle always comes out better than the lighter vehicle.

Small cars have less mass, meaning they are often forced backward in crashes, and crumple zones are smaller, making occupants more vulnerable. Fatality rates for drivers of small cars are higher than any other category: 83 deaths per million which is more than double the average for all sizes of vehicles. Ouch!!

Click here to read more.

- David Adams

October 25, 2006

Honda takes to the skies

You may not be able to power a passenger jet with biofuels, but Honda says you can still do a lot by making planes and engines more fuel efficient.
Take a look a this baby - the HondaJet.
Hondajet
Not scheduled for production until 2010, the Honda Aircraft Company, Inc started taking orders last week for the advanced light jet, which will be able to cruise at 420 knots and fly 1,180 nautical miles on a tank of jet fuel. Thanks to fuel-efficient jet engines and an aerodynamic, lightweight design, the HondaJet is expected to achieve an increase in fuel efficiency of 30 to 35 percent compared to similar light jets. Earlier this month Honda submitted its application for FAA type certification, and anticipates certification within 3 to 4 years. The company plans to build 70 jets per year in the United States, according to the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE).
The eight-seater aircraft (2 pilots and six passengers) achieves its fuel efficiency by using lightweight composite materials made of carbon fiber and epoxy.

Sales are hot, according to Honda. As of October 19th, after three days on the market, the company had already received more than 100 customer orders and deposits.

The HondaJet is powered by the HF120 jet engine built by a joint venture between Honda and General Electric. The engine is also being fitted to another aircraft, the Spectrum Freedom S-40, with a cruising speed of 435 knots and a range of 2,200 nautical miles.

It would be great if you could fuel a passenger jet on ethanol or biodiesel, but experts say it just won't happen. The thrust required for a jet engine is just too great. (I'd welcome thoughts from readers who say it might one day be feasible. The Brazilian company, Embraer, manufactures the only biofuel powered light plane that I am aware of, and its a turbo-prop crop duster).

Click here to visit the HondaJet Web site. The site has a stunning gallery of photos and a nice in-flight video.

- David Adams

October 24, 2006

Meeting energy demand.

Poweringsustainablefuture Some of the world's leading utility companies today endorsed a report calling for "concerted action" to find ways to reduce greenhouse gas emissions while meeting increased global demand for energy.

The report, Powering a Sustainable Future, was released by the World Business Council for Sustainable Development (WBCSD), with the support of eight of the world's leading electric utility companies. These companies claim to represent around a tenth of the planet's generating capacity.

The eight companies warn that unless there is a marked shift in the way electricity is generated and regulated worldwide, increased energy production will have serious environmental impacts. I have had a chance to glance through the report and it does not appear to initially favor any one particular energy source, though it does call for public discussion on "the acceptability of nuclear energy as a climate mitigation measure." The report seems more concerned with alerting governments and others in the industry to the importance of dealing urgently with the looming crisis over energy demand and supply. In one rather odd omission, the report fails to include wind energy in its list of options.
(If you have read the report, let me know what your conclusions are. This is obviously an important gathering of energy executives.)

"With explosive population growth and development, economies are growing ever more dependent on electricity", said WBCSD President Bjorn Stigson. "That should be good news for the head of an electric power company, but the CEOs who have signed this new report are getting very concerned. Today , the power sector generates 40 percent of all carbon dioxide emissions from fuel combustion, and these emissions are rising quickly."

The report highlights the huge potential for greater energy efficiency, while also exploring the various options for power generation, including fossil fuels, nuclear power and renewable sources. The report recognizes that energy security concerns are currently favoring the use of coal, one of the least clean and the most carbon-intensive fuels. It argues that "to significantly curb the growth in greenhouse gas emissions from the power sector in the next 20 to 30 years, we must find ways to finance the incremental cost of available lower-carbon technologies. Ideally developers should have a clear incentive to use such technologies whenever a new project is considered."

The group urged governments and businesses to invest more money in research to find which are the best energy options available. "Business and government alike need to reverse the trend of declining resources for energy research and development, to make sure that carbon capture and storage, fourth generation nuclear plants, solar technologies and new storage systems for electricity, will be ready for deployment in time," it says.

(The eight utility companies are: ABB Ltd. (Switzerland), EDF Group (France), Eskom Holdings Limited (South Africa), CLP Holdings (Hong Kong), Entergy Corporation from the US, Kansai Electric Power Company and Tokyo Electric Power Company from Japan, and Suez from France.)

Click here to read the report.

- David Adams

OPEC's 'failure to invest.'

Everyone is asking what's going on with oil prices, and how will they affect the current boom in biofuels such as ethanol and biodiesel?
Some analysts, including my knowledgeable fellow blogger at The Oil Drum, say prices could go back down as low as $30 a barrel. That would indeed be disastrous for biofuels industry which needs oil to stay over $50 a barrel for its own prices to remain competitive. But it's also pretty unlikely other experts say. Oil prices are more likely to stay right where they are now, hovering slightly under $60 a barrel. That's well down from the high of $78 a barrel earlier this year, but still high enough for biofuels to compete.

In the long term the forecasts for the oil industry also point to higher prices.
Economist_logo An article in The Economist magazine this week points out that OPEC countries simply aren't investing enough m oney in exploration to be able to satisfy future increased demand.

"... in the long run, what matters for the price of petrol and the health of the world economy is not just how much oil OPEC's members produce, but how much they invest in future production," writes The Economist.

Most analysts, including the United States official estimates, assume that the oil price will rise to $95 a barrel by 2030 if OPEC does not increase its output dramatically.

The article goes on: "Their output today, of some 27.5m b/d, is much the same as it was in the 1970s. What is more, they are scarred by the memory of the 1980s, when slower-than-expected growth in demand and a glut of non-OPEC supply left them saddled with lots of expensive excess capacity. The high prices of recent years are partly a legacy of that glut, insofar as OPEC, still leery of over-investment, allowed its cushion of spare capacity to dwindle to almost nothing, heightening supply concerns."

With oil companies enjoying their current profits, and with new territory for exploration hard to find (or hard to get the rights to explore), OPEC has little room for manoever.
Its own forecast for production could prove overly optimistic, since it presumes increased production in unstable countries such as Venezuela, Iran, Nigeria and Iraq.

Even so, the biofuels industry is clearly worried.

OPEC feels that they can manage the price of gasoline to a point where increasing the production of E85 and providing it at more locations across the country will become less attractive," according to Curtis Donaldson, Chairman of the National Ethanol Vehicle Coalition (NEVC) in a press release. "It will be disappointing if we allow this to happen when everyone knows, now more than ever, we need more energy independence,” he added.

Click here to read The Economist's report this week on OPEC's 'failure to invest.'
3606ld1
Click here to read The Economist's special feature report on global warming: 'The Heat Is On: The uncertainty surrounding climate change argues for action, not inaction. America should lead the way.'
- David Adams

October 23, 2006

Biomass and paper pulp.

22Here's another application for new biomass technologies - the wood processing and paper pulp industry.

Several companies are already examining how cellulosic technology might be able to improve the efficiency of the wood pulp industry, basically by getting more paper out of the same amount of wood. During the pulp process part of the fibrous woody material ends up being discarded. But using cellulosic technology it may be possible to break that material down into a material more easily converted into paper. (As major purchasers of paper, newspapers might also potentially stand to gain by improved paper production efficiency, especially if that reduces cost.)

One of the largest U.S. wood producers, The Price Companies, Inc. of Monticello, Arkansas last week announced plans to launch a new division called "Price BIOstock Services" focusing on a broad range of management and operations technology services to companies involved in the rapid growth of biomass conversion facilities in North America and abroad.
"The future of these technologies will involve using cellulosic biomass (like wood chips, rice straw, corn stover, and even urban waste) as feedstock for the refinery/ conversion process," the company says.
“Price can provide people and facilities to procure, grow, harvest, and process the fiber necessary for biofuels," says Price BIOstock Services General Manager Dick Carmical.

I'm no expert, so listen to what my fellow blogger, C. Scott Miller at the Bioconversion blog has to say about Price's new division.

"This is really an exciting company. Think about all the risk-takers panning for "ethanol gold". They will all need to either enlist or suddenly develop expertise at handling feedstock. Why take a risk on such a critical part of the production flow? And Price has been doing it for forty years!

As the variety of biostock grows, their expertise will grow with it. They will, in all likelihood, be the first to develop refined sorting and shredding equipment which will have greater biofuel yields. I assume they will diversify into offering customed blending services."

Click here to visit the Price Biostock website.

- David Adams

More on the 'dot-corn bust'

Ethanol_7Wow, you can almost hear the herd stampeding - - away from ethanol. Lower gas prices and corn getting more expensive, some experts say this could spell doom for ethanol. I'm not an expert, by any means, but it seems to me folks are forgetting a few basic home truths. Firstly, gasoline at $56 is still way higher than where it was not long ago, and that still leaves ethanol competive. Secondly, the technology curve for ethanol production is also rising sharply, meaning higher and more efficient yields,  which should translate into cheaper prices as more of it comes on stream.

Find a link below to the latest news analysis from Forbes writer, Jonathan Fahey.

Forbes_home_logo_1"Corn prices are rising rapidly, from $2.20 a bushel this summer to over $3 a bushel lately on fears that this year's crop will be weak. And oil prices have fallen from $76 a barrel to $56," he notes.
In the process Pacific Ethanol shares (where Bill Gates' company Cascade Investments, invested $84 million) have dropped from $40 to only $16. That's still up on its pre-ethanol boom value of $10.

"There was a bit of overexcitement, and now that oil prices have moderated, a bit of overcorrection," says Neil Koehler, chief executive of Pacific Ethanol. "The market is still trying to figure out how to value this industry."

Lower gas prices and corn getting more expensive, some experts say this could spell doom for ethanol. I'm not an expert, by any means, but it seems to me folks are forgetting a few basic home truths. Firtly, gasoline at $56 is still way higher than where it was not long ago, and that still leaves ethanol competive. Secondly, the technology curve for ethanol production is also rising sharply, meaning higher and more efficient yields,  which should translate into cheaper prices as more of it comes on stream.

Click here to read the full article.

'Dot-corn bust?'

You may recall our post the other day about Gate Ethanol's decision to cancel plans to build an ethanol plant outside Jacksonville. We quoted Gate's president, R.B. Buzz Hoover explaining that the cost of construction part had gone through the roof because of the building frenzy sweeping the industry.

I am planning a follow up story about the national picture. But The Miami Herald business section beat me to it this morning! Blame it on North Korea's dictator, Kim Jong Il. I got dragged into reporting on the crisis over his recent nuclear test. I'll get back to the ethanol story soonest. Meanwhile, here's the Herald 's article, which covers the issues pretty well.
It compares the industry to the infamous 'dot com' boom and bust in the 90s. It asks if there is a 'dor corn bust' looming.

Click here to see a map of biorefineries under construction.

- David Adams

China cooking up biodiesel solutions

Logo_1 The Worldwatch Institute continues to bring interesting articles on every aspects of renewable technology. I missed this one earier this month on China's role in biofuels ('Used Cooking Oil Promises to Fuel China's Rapidly Expanding Car Fleet.')

It makes for fascinating reading.

Chinawatchmdbox The Chinese love cooking oil. Until recently they used to throw it into their sewage system. In recent years, however, they have begun using it as fuel for the nation’s rapidly growing automobile fleet. "Biodiesel fuel is proving beneficial to China’s caterers, the auto industry, and the environment in general," Worldwatch says.

China’s biodiesel production began in 2001, initiated by a group of businessmen in the chemical industry who knew that the fatty acid residues from salad oil production could be processed into automotive fuel.

After achieving success with the salad oil wastes, the group expanded its feedstock to other inexpensive supplies, such as used oils, waste animal fats, and wild oilseed plants. Unlike their U.S. or European counterparts, who have relied mainly on fresh vegetable oil or soybeans to process biodiesel fuel, China’s entrepreneurs have had to focus on waste oil sources from the very beginning, constrained by the shortage of new vegetable oil in the world’s most populous country. With their flexibility and ingenuity, however, they managed to make a profit without any government subsidies.

Even though China’s biodiesel is sold at a cheaper price than petroleum-based diesel, producers still earn a profit of roughly 1,500 yuan ($187) per ton. Market incentives and increased government support have enabled biodiesel production projects to mushroom nationwide since late 2005. Today, however, China boasts more than 100 biodiesel production facilities.  In 2005, China manufactured 110,000–120,000 tons of biodiesel fuel; in 2006, production is expected to reach 1 million tons.

Click here to read more from the Worldwatch Institute.

Hybrids on Aol

Here's a cool new internet report 'Hyped About Hybrids' from Aol Autos. It includes Aol's top 11 Most Fuel Efficient vehicles. No. 1 is the 2006 Honda Insight, ahead of the Toyota Prius. (see our post last week on the Top 10 guide from the Department  of Energy and  Environmental Protection Agency.)

The report also contains items on new lithium batteries for plug-ins, and other fuel options including ethanol and biodiesel. There's also an online poll about E85. Asked if they would put E85 in their car if it was flex-fuel capable, 69% of the 44,000 respondents said 'Yes,' and only 9% said 'No.' Another 22% said 'Yes, but only if it was the same price as gasoline.'

Click here to go to 'Aol Autos.'

- David Adams

Downgraded uranium and the nuclear renaissance.

CrLast week I learned about a little known program in the United States to convert nuclear reactors from highly-enriched uranium (HEU) to safer, down-blended low-enriched uranium (LEU).

The idea is partly to make these reactors safer places, but also to set an example to the rest of the world. Federal officials also appear to be using the program to tout the virtues of nuclear energy as one of the favored options to reduce our dependence on diminishing resources of cheap foreign oil, while also reducing greenhouse gas emissions.

There are more nuclear reactors in the United States that most realize, including training reactors on the campus of several universities. A ceremony was held last week to mark completion of the downgrading of one of them at the University of Florida, Gainesville campus. In the future, UF engineering students will use a lower grade of uranium at the reactor that can't be used for making weapons.

A reactor at Texas A&M University is also in the process of being converted to less pure uranium. The UF reactor was installed in 1959 under President Eisenhower's "Atoms for Peace" program, which placed similar reactors at dozens of American colleges.

The downgrading program, called Reduced Enrichment for Research and Test Reactors (RERTR), has compiled a complete list of 96 reactors around the world that are currently operating on highly enriched uranium, according to Jerry Paul, an energy consultant and former deputy administrator of the National Nuclear Security Administration (NNSA) which runs the program.
The program is a valuable policy tool in persuading other countries to downgrade to safer levels of uranium enrichment, says Paul, a former UF engineeering department graduate who attended the ceremony on Tuesday. “We work with countries to convert from HEU to LEU. The higher it is enriched the greater value it has to military purposes. We redesign these cores and pay to insert LEU,” he told me.
New technology allows most peaceful scientific and medical research (radiation therapy for example) to be accomplished using LEU, he added. “We go to them and say ‘you can do this with low enriched uranium.’
Of the list, 27 reactors are in the United States.

Readers of The Fueling Station may have noticed there is a quiet nuclear renaissance building around the world as countries come to grips with high priced oil and concern about energy independence. Many now argue, including some environmentalists, that new and safer nuclear technology, offers the fastest solution to global warming.

The U.S. is part of that renaissance, with several companies about to unveil plans for the construction of new plants (including FP&L in Florida).

"Already we just passed three hundred million people in the US," UF College of Engineering Dean Pramod Khargonkar told one local TV station last week. "Florida is one of the fastest growing states in the nation with rapid energy needs so nuclear energy has got to be part of the solution."

Paul is also an advocate of nuclear power as a means of reducing the threat of the spread of nuclear weapons. His argument is that by encouraging the building of new nuclear plants around the world, we can encourage states to focus on peaceful nuclear energy technology rather than secret weapons programs.

Critics argue that more nuclear power stations will provide better cover for weapons technology development. Last week Mohamed ElBaradei, director general of the International Atomic Energy Agency, told a nuclear non-proliferation conference in Vienna that as many as 30 nations "in a very short time" could have technology that would let them someday produce nuclear weapons. Those countries may be "hedging their bets" by developing civilian energy programs that could quickly be converted into arms programs, he said.

The Bush administration has already proposed a Global Nuclear Energy Partnership in which the U.S. and other nuclear states help provide non-weapons technology (reactors and low grade fuel) to other countries to help them with their energy programs, thereby increasing international safeguards on nuclear proliferation.

"We need a new system to guarantee supply of (nuclear) fuel for states for peaceful purposes,
" agrees Daryl Kimball director of the Arms Control Association in Washington DC, an independent group which promotes public understanding of arms control issues.  The Arms Control Association favors a time-limited freeze on all nuclear states in order to create a more balanced playing field.

By the way, here's another the United States and Russia signed an agreement known as the 'Megatons to Megawatts' program to convert dismantled Russian nuclear warheads into nuclear fuel for American nuclear power plants to make electricity. The program basically involved taking highly-enriched bomb-grade uranium taken from the warheads and downgrading it into low-enriched uranium fuel for energy use. The 20-year, $8 billion program is due to be completed in 2013 by which time 500 metric tons of Russian nuclear warhead material (the equivalent of 20,000 warheads) will have been recycled. Virtually all U.S. nuclear reactors participate in the program which claims to provide electricity to one in ten American homes.

Click here
to read a report on the UF reactor in The Gainesville Sun.

- David Adams

October 21, 2006

Cutting emissions wins acceptance in California

California has long had a deserved reputation of leading the country on innovative solutions. So, have you been following the debate over California's new Global Warming Solutions Act passed last month? It really seems to have stirred up thinking over there, even winning the support of one traditional power company executive.

Here's an interview from today's New York Times with Peter Darbee, chief executive and president of PG&E, owner of Pacific Gas and Electric, who is one of the energy industry leaders who is supporting the measure.
21interview190

Click here too read the interview.

- David Adams

A solar solution.

21solar600 Take a look at these impressive solar energy rooftop photos in the New York Times today. The photos are of the roof of a General Motors warehouse in California.

21solar190 The article describes how GM and a solar energy company, Deers (Developing Energy Efficient Rooftop Systems), came up with an innovative financial arrangement. Deers installed the photovoltaic solar panels on GM's roof, free of charge, and GM agreed to a long-term contract to buy the electricity generated on its own roof from Deers (at about  10 per cent less than the going rate for electricity). The power generated is about half the building's electricity need.
Pretty good deal all round, wouldn't you say?
It would also appear to show that there is increasingly a future for photovoltaic solar energy systems, especially perhaps in large industrial space uses, which have until now been held back by high costs. The NYT reports that numerous companies, from Staples, to Whole Foods Market and Goldman Sachs are investing in solar energy systems.

I remind you of our post on Thursday which carried a report by the North American Electric Reliability Council (NERC) which warned that the United States isn't producing enough electricity to meet growing demand. Companies are not building power plants and power lines fast enough, the report said. Solar energy could clearly help fill this gap.

I would also refer you to our post a day earlier (Oct 18) about Google's plans to install solar power at its California headquarters to provide 30% of its energy needs.

Click here to read the full story in the New York Times.
Click here to visit the website of the Florida Solar Energy Center (FSEC).

- David Adams

October 20, 2006

Latin American biofuels alliance

Biz_1_1ddrink__1109_1 In a little noticed news item this week Brazil's state-owned Petrobras and Colombia's state-owned Ecopetrol this week signed an agreement to cooperate in the development of biofuels. Under the agreement the two companies will over the courcse of the next 12 months study the possibility of creating new businesses for the production, sale, transport, research, and technological assistance related to biofuels.
The agreement is part of Brazil's strategy to create a global market for ethanol in order to guarantee the future of its own enormously successful sugar cane for ethanol program, as well as its equally impressive 'flex-fuel' vehicle revolution. (Click here to read my report in the St Petersburg Times on Brazil's flex-fuel strategy, and click here to read my report on Brazil's sugar for ethanol program.)

As some of you may know, Petrobras is a global pioneeer of biofuels. Together with the United States, Brazil is the world's largest producer of ethanol, with more than four billion gallons annual output. Colombia is fast emerging as the third largest biofuels producer in the hemisphere. The Colombian government recently introduced a program to introduce E10 (a blend of 10% ethanol and 90% gasoline) in the country's four largest cities - Bogota, Cali, Medellin and Barranquilla. It plans to extend that program to several more cities in December.

p.s. thanks to the excellent new publication of the Inter-American Dialogue, Latin America Energy Advisor, for bringing this news to my attention.

Click here to read an excellent report on the Latin American biofuels market by the IDB's magazine, IDBAmérica.

- David Adams

What's that smell? Power

For the first time, a major U.S. manufacturing facility has been sited and built next to a landfill specifically to use the landfill gas as fuel.

The new Jenkins Brick Company's $56-million manufacturing plant in Moody, Ala., will use landfill gas to fuel its kilns, satisfying 40 percent of the plant's energy needs initially, with 100 percent projected in 10 years as the landfill grows. The project will also reduce greenhouse gas emissions by 62,000 metric tons of carbon dioxide equivalent per year, the equivalent of planting nearly 14,700 acres of forest, according to the EPA.

Methane is the primary component of landfill gas, which results from the natural break-down of buried waste in a landfill. Reducing methane emissions provides immediate environmental benefits because methane, a greenhouse gas, is over 20 times as potent as carbon dioxide at capturing heat in the atmosphere. Capturing and using methane as a clean fuel also provides economic and energy-security benefits.

The company's new plant is one of the largest of its kind in the nation. The facility was located and designed to reduce operating costs and greenhouse gas emissions by using clean energy from a nearby landfill. Jenkins Brick and Veolia Environmental Services, the owner of the landfill providing the gas, partnered with EPA's Landfill Methane Outreach Program to create a first of its kind landfill gas energy project. The facility is expected to benefit the local economy by creating approximately 55 new jobs.

Jenkins Brick Company, headquartered in Montgomery, Ala., has been using clean-burning landfill gas to fuel its Montgomery brick plant since 1998. The success of this project convinced Jenkins management to build its next manufacturing facility to take advantage of local landfill gas.

--Craig Pittman

October 19, 2006

Big week for alternatives.

Horsehollow2 The  world’s largest wind farm – the 735 MW Horse Hollow Wind Energy Center in Texas - was dedicated today by FPL Energy, a subsidiary of Florida-based FPL Energy group.

This was the second important alternative energy inauguration this week. On Monday Pacific Ethanol held a ribbon cutting ceremony at its new 35 million gallon ethanol plant near Fresno, California.

The Horse Hollow Wind Energy Center is spread across approximately 47,000 acres in Taylor and Nolan County, Texas. The facility is comprised of 291 GE 1.5 megawatt wind turbines and 130 Siemens 2.3 megawatt wind turbines. FPL Energy now operates more than 1,600 megawatts of wind in Texas alone.                    

FPL Energy currently operates 48 wind farms throughout the U.S. with a gross capacity of nearly 4,100 megawatts – enough electricity to power more than one million average U.S. homes. FPL Energy is currently the largest owner and operator of wind turbines in the world and operates more than 1,600 megawatts of wind power in Texas alone.

The Pacific Ethanol plant at Madera, California will have a production capacity of 35 million gallons a year. The company is building a second plant in Oregon which is due to be completed at the end of the first quarter of 2007. Pacific Ethanol says it plans to be the biofuels industry leader in the US, aiming to produce 220 million gallons per year by mid 2008, and 420 gallons per year by the end of 2010 (equivalent to about 10% of current US ethanol production).

Neil Koehler, a Green Party member, runs Pacific Ethanol with former California Secretary of State Bill Jones, a Republican agribusinessman from the San Joaquin Valley. Microsoft Corp. co-founder Bill Gates, through his Cascade Investment LLC, recently poured $84 million into Pacific Ethanol. The money will help build four more plants planned once the Madera facility opens.

Click here to visit FPL Energy's website.
Click here to visit Pacific Ethanol's website.

- David Adams 

Who is the Greenest of them all?

The Department of Energy has released its new Fuel Economy Guide, an annual publication containing the fuel economy estimates for all cars   and light trucks.

Prius_mainlg No 1 is the Toyota Prius (hybrid-electric) with 60 mpg in the city and 51 on the highway, followed by the Honda Civic Hybrid (49/51) and the Toyota Camry Hybrid (40/38).

Seven of the top ten are Japanese cars. The Ford Escape hybird came in 4th, though its fuel economy is well below the top Japanese models with only 36 mpg in the city and 31 on the highway.

The Guide includes information about alternative fuel vehicles, the range of fuel economy for different classes of vehicles, a list of fuel economy leaders, and tips for improving fuel economy. The Guide is published jointly by the Department of Energy and Environmental Protection Agency.

Click here for the Guide's Top Ten.
Click here for the complete 'Green Vehicle Guide.'

UK wants airlines to pay for pollution

Logo Britain wants all airlines that depart from Europe to adhere to the European Union's greenhouse gas trading program within two years, according to a report on American Public Media's radio show, 'Marketplace.'
Several industries are already part of the so-called 'carbon trading' program. They're assigned a base amount of allowed emissions and if they want to go beyond that, they have to buy 'off-setting' permits on the open market.
Airlines had been given until 2013 to sign up for the program, but Britain apparently wants to bring forward the deadline to 2008, or as soon as is practically possible. European impatience appears to stem from requirements under the Kyoto treaty to cut greenhouse gas emissions. The airlines are major contributors to greenhouse gases that cause global warming.

Click here to listen to the Marketplace report.
Click here for story in this morning's Financial Times.

Click here to listen to a Marketplace commentary on carbon trading by David Frum, a former Bush White House speech writer, who argues you don't have to believe in global warming to support a tax on carbon dioxide. Frum is a resident fellow at the American Enterprise Institute.

- David Adams

Demand outpacing electricity supply.

Nerclogo

A new report from the North American Electric Reliability Council (NERC) warns that the United States isn't producing enough electricity to meet growing demand.
Companies are not building power plants and power lines fast enough, the report says. The NERC was recently assigned by the federal government to assure proper operation of the power grid.

The group annual report, which was released on Monday, said the amount of power that could be generated or transmitted would drop below the target levels meant to ensure reliability on peak days in Texas, New England, the Mid-Atlantic area and the Midwest during the next two to three years.

Click here to read a press release announcing the report at www.nerc.com
Click here to listen to report on National Public Radio.
p.s. tonight at 6pm on NPR, the show Marketplace will be addressing the ethanol boom

- David Adams

October 18, 2006

Google goes solar

Google_1The internet giant is converting its San Francisco headquarters to run partly on solar power in what is said to be the largest solar project undertaken by a U.S. company.
Google made the announcement at a solar energy conference in Silicon Valley on Monday. The company says it believes solar energy can provide as much as 30 percent of the power at its sprawling corporate HQ in Mountain View, outside the city.
Google
The project will require installing more than 9,200 solar panels on a high-tech mecca nicknamed the "Googleplex," capable of producing about 1.6 megawatts of electricity, or enough power to supply about 1,000 homes.

Google co-founders Larry Page and Sergey Brin are big supporters of alternative energy, according to the Associated Press. The billionaires began driving hybrid cars shortly after they hit the mass market. Page also is among the investors in Tesla Motors Inc., a Silicon Valley startup developing a sports car that runs on electricity.

Click here to read the Associated Press story.

Googleplex Click here to read more on the Googleplex from Renewable Energy Access newsletter.

- David Adams

More on Citgo campaign

Citgo From the Houston Chronicle:

Citgo Petroleum Corp. went on the attack Monday in new ads that blast what it calls "misleading and inaccurate" criticisms of the Houston-based arm of the Venezuelan oil company.

The ads reaffirm its commitment to the U.S. market and work to counter the backlash from a speech a month ago by Venezuelan President Hugo Chavez, in which he called President Bush "the devil" during a visit to the United Nations.

In the first ad, which appeared Monday in the Washington Post, Citgo President Felix Rodriguez said critics are doing more damage to Citgo's thousands of U.S. employees and small-business owners who sell Citgo gasoline than to the company itself.

"We understand that, as a corporation, we cannot always control the environment in which we operate, but we feel compelled to set the record straight out of respect for our employees, business partners and consumers," he said.

The ad points out that Citgo employs 4,000 people, operates five refineries and sells gasoline through 13,000 independently owned stations across the country.

Citgo also says it is too early to tell if the company's sales have taken a hit as a result of Chavez's remarks.

Click here to read the Houston Chronicle article in full.

- David Adams

October 17, 2006

Citgo's Latin Energy strikes home.

Baseballbeisbol For all the patriotic talk about Citgo's unfortunate relationship to Venezuela's state-owned oil company PdVSA, you gotta be impressed by their marketing strategy. After President Hugo Chavez's recent ill-chosen words about George Bush (he called him "the devil," during a speech at the UN), Citgo has gone on a TV publicity blitz.

Since last week Citgo has been bombarding Spanish-language TV stations in the U.S., with it's own devilishly clever ad featuring that most American of past-times - baseball.

An avid baseball fan myself, I first caught the Citgo ad the other day watching the playoffs on Fox Sports en Espanol.

Cleverly designed to appeal to latinos, the ad opens with a young man in the stadium seats playing a standard rendition of 'Take Me Out To The Ballpark' on an electric keyboard. All of a sudden he switches into a salsa rythm. The fans leap out of their seats and begin to dance.

Then a simple message flashes onto the screen:

"CITGO - Energía Latina"

"Citgo - Latin Energy."

It's a subtle message, suggesting that viewers put their Latin heritage ahead of loyalty to the White House. Forget about politics, let's dance, it seems to be saying. I'm surprised conservatives haven't raised a stink about it.

Citgo spokesman, David McCollum, tells me the  Energía Latina campaign was actually designed  before the now infamous UN speech. The tv ads were "targeted for the playoffs all along," he said.
An English-language marketing campaign designed to show Citgo's American heritage was launched in Washington Monday. Expect to see full page ads in the New York Times, USA Today, Houston Chronicle and Miami Herald on Thursday. The English-language campaign, titled 'Setting the Record Straight,'  IS in direct response to the anti-Citgo campaign, McCollum says.

Citgo's advertising campaign sounds rather more persuasive than this (see below) which I found on the internet at Babalublog.com

Ass2_1


(By the way, Citgo's  Energía Latina marketing effort also includes the signing of Florida Marlins slugger, Venezuelan-born Miguel Cabrera as the Florida face of CITGO. Now that's what I call smart! Of course, I'm totally biased on this as I am a longtime Marlins fan and Miggy is my 9-year-old's hero.)

Click here for my Sept 26 story about the Florida response to Chavez's speech.

Click here for today's Miami Herald story on the Citgo controversy from business writer, Jane Bussey.

Click here for Citgo's response to alleged "inaccurate and misleading information" about the company.

- David Adams

October 16, 2006

Re-Energize America

Reenergizelogo_1The Re-Energize America campaign brought its message to a Town Hall meeting at the University of Miami this evening  as part of its educational series about solving global warming and ending oil addiction.

The Re-Energize America campaign has hit upon a smart holistic approach to draw people together over the energy debate by inviting speakers from political life, the business world and the religious community. It worked very well Monday, with each speaker adding a complementary angle to the debate. I'm happy to say that the meeting was the first carbon neutral event I have attended, thanks to the Bonneville Environmental Foundation which sells 'green tags' to offset carbon emissions. I was also able to purchase a clifbar.com 'cool tag' at the door for $2 to offset the car emissions getting to and from the meeting.Clifbar





Miami Mayor Manny Diaz
told the meeting that the public needed to take a bigger role in the energy debate, Diazspeech3through more efficient energy use. "We can all make smarter choices," he said. Diaz recently bought a hybrid as the Mayor's official car and plans for the city to have 1,000 hybrid or alternative energy fleet vehicles by 2012. The mayor plans a conference in Miami later this year to invite 'green' developers from around the country to explain the thinking behind green building design. He has also set up a Miami Green Commission to serve as an alternative energy advisory panel.

Adrianna Quintero, Latino Outreach Director for the Natural Resources Defense Council (NRDC), Quintero started things off by explaining the gravity of the problem of global warming, but stressing that it is "not too late" to stabilize global warming by reducing C02 emissions into the atmosphere. To bring greenhouse gas emissions under control, Quintero said we need to cut our oil consumption by 2.5 million barrels a day within the next decade, and reduce CO2 emissions by 50% by 2050.
This could be done, she said, by using energy efficent technology, from energy saving light bulbs to green building design and alternative fuels.

Jim Fenton, director of the Florida Solar Energy Center focused on some of the ways to reduce Fenton_1 energy consumption, pointing out the added attraction that "you can save money doing this."
The need for greater energy efficiency is especially apparent in Florida which ranks fifth nationally in the amount of energy consumed per capita, and third in total energy use.
Fenton estimates that the state could save $20 billion in fuel importation costs by reducing dependence on oil. He noted that 51% of electricity use in Florida is residential, due to the state's lack of heavy industry. That meant the public could have a greater impact on energy costs.

Rev. Brenda Girton-Mitchell, Associate General Secretary with the National Council of Churches, delivered a faith-based 'Protect Creation' message, which is one being heard across the country more and more. (see the New York Times story Oct 15). Her message was simple; put the facts about global warming together with Biblical principals and you have an even stronger case.

"The church has the chance to bring a moral voice to this conversation," she said. "We say to you 'give us the facts and we will connect to our faith, and make things happen."

Girton-Mitchell explained that eco-justice is the NCCC's fastest growing program area under the guidance of Cassandra Carmichael, the program leader. (Carmichael even puts out an eco-blog called Capsules). The NCCC has brought out several publications on the issue in the last couple of years, starting with a document called 'Cry of Creation' in 2004. Girton-Mitchell likes to talk about man's 'stewardship' of the planet. "We are all called by our faith to care for creation," she says. To be sure, God created the Earth for us to use it, but "he didn't mean for us to destroy it," she adds.

Former Senator Bob Graham has long been a friend of Florida's environment. He is now hoping to Bobgraham lend his weight to the energy debate through two educational centers he is creating at the University of Miami and the University of Florida. "Do we have an energy policy, or are we just drifting?" he asked. "The good news is that we do have an energy policy. The bad news is, it's an horrendous policy," he said.

He highlighted the dilemma with two pieces of data:
1./ The US consumes 25% of world's oil production.
2./ The US possesses only 3% of the world's known oil resources.

Graham advocates stretching US oil resources so as not to "drain America first." Increased foreign fuel imports would be needed while "we fundamentally shift to a long-term strategy that will move America beyond oil."

On Wednesday the Re-Energize Campaign will be in Orlando. For details visit (www.ReEnergizeAmerica.com)

Click here to view Fenton's power-point presentation: 'Taking Charge of Our Energy Future.'

Click here to read the Miami Herald report on the Town hall meeting.

Click here to learn more about NRDC's Latino outreach program, 'laondaverde.com'

- David Adams