2006: A good year for alternative energy.

I will always remember 2006 as the year I began to take a serious interest in our energy future - and as the birth year of The Fueling Station.

To readers of the blog I thank you all for visiting this site, and I would like to take this opportunity to wish you all the best for 2007. It is my hope that this year will continue to see the advance of alternative energy technologies to reduce greenhouse gas emissions, as well as addressing our dependence on foreign oil.

2006 saw many advances, and hopefully the pace of change will quicken in 2007. It needs to. The latest scientific evidence points to a rapid increase in greenhouse gas emissions, at a rate much faster than our half-hearted efforts to reduce them.

2006 was a year which began with president Bush's surprise decalaration in February in his State of the Union address that the United States was "addicted to foreign oil." While he may not have done enough to alter that situation, he took us a long way simply by identifying it.

As Washington dithers, 2006 was a year in which states took the initiative in confronting energy issues.

In Florida, Governor Jeb Bush also had the vision to see beyond what hurricanes can do to our energy supply, and set about exploring some alternatives. He closed out the year by joining in the creation of a hemispheric commission to promote ethanol (Helpfuelthefuture.com)
And in California, Governor Arnold Schwarzenegger signed into law America's first global warming legislation that imposes a cap on greenhouse gas emissions.
Iowa, the nation's leader in ethanol, even produced its own 2008 presidential candidate, Governor Tom Vilsack.

2006 will also be remembered as the year that Al Gore (click here for his latest essay in Newsweek magazine) reasserted his environmental leadership with the release of An Inconvenient Truth, a remarkable documentary look at global warming. As one friend commented recently, another bad hurricane season in 2007, or some other kind of weather-related disaster, and Al Gore could become a serious presidential contender in 2008.

In 2006 British entrepreneur Sir Richard Branson (click here to read his latest essay in Newsweek) put the issue of 'green skies' on the agenda, by announcing a new business model to reduce airline CO2 emissions. Branson also put his money where his mouth is, pledging a $3 billion, 10-year investment in R&D for biofuels.

Other major companies also took innovative steps to diversify their energy use: among them Wal-Mart and Google, and Staples and GM. Wall St also began to take note with a dramatic increase in investments in clean technology stocks.

So, what can we expect in 2007? It will be especially interesting to see if the new Congress - hand in hand perhaps with the White House - will push for more federally mandated use of biofuels and other energy alternatives. (Click here to read my article on the new Congress and the future of energy policy.) Some experts predict the U.S. may even move closer to joining the Kyoto Protocol.

Public opinion and the private sector have already shown a serious commitment to change. It's time that government intervened to take the necessary steps to accelerate that process.
For example, in places such as Florida, potential biofuels distributors and current gas station owners need greater encouragement to install pumps and underground storage tanks for ethanol blends and biodiesel. The government also needs to embark on a national education campaign to promote alternative energy uses. Congress hopefully will begin to look at some of the tax incentives currently benefiting the oil and gas industry, and transfer some of that money to R&D in renewables. As Europe has already demonstrated, we shouldn't be afraid of higher gas prices. They are a necessary part of weaning ourselves off dependence on fossil fuels.
As my colleague at the BIOconversion blog likes to emphasize, there needs to be greater R&D spending on creating energy from landfill biomass, which is surely one of the least known and most  fascinating  new  technologies.

At The Fueling Station we look forward to bringing you news of these developments through the year.

Click here for a link to the BBC's Green Room and an analysis of future US policy on global warming by Jonathan Lash, president of the World Resources Institute in Washington DC.

Click here for a link to a New York Times article looking at the debate among scientists over global warming. Some are now adopting a middle road, seeking to avoid the more catastrophic speculation in favor of an insurance risk approach. This group argues it is sensible to be prepared for the worst, rather than argue over exactly what is happening to the planet.

Click here for a link to an interview on changing business practices with Marketplace's Sustainability Desk reporter, Sam Eaton. Eaton discusses how green is increasingly becoming the bottom line.

Click here for a link to the excellent end of year digest from the BIOconversion blog.

- David Adams

Legal dispute threatens Florida's first ethanol plant.

I'm sorry to report that it looks as though there won't be any ethanol being produced in Florida this year after all.

A proposal by US Envirofuels to build the state's first ethanol plant in Tampa has received its final permit to begin construction. But groundbreaking could be delayed by an unforseen legal dispute.

PEL Laboratories, an environmental testing firm at the Port of Tampa has filed an injunction to stop construction of the ethanol plant. It complains that gas emissions from the biofuels facility would  potential contaminate sample testing PEL conducts for the military and commercial customers. (PEL is a neighbor of the proposed ehtanol plant site.)

However, the Tampa ethanol plant remains on track, according to Bradley Krohn, president of EnviroFuels. The project continues to have the full backing of the Port of Tampa which is urging PEL not to stand in the way of the state's economic development. Florida officials, led by Gov Jeb Bush, have recently become vocal advocates for a green biofuels energy policy to reduce the state's dependency on foreign oil imports, while also cutting greenhouse gas emissions.

Construction of the ethanol plant is due to start in 2007 and is expected to go into production by mid-2008. That's a year later than the company had hoped, but Krohn tells me that the company is now "fully permitted" after receiving its final permit from Hillsborough County last week.

The company says it has studiously fulfilled all the permitting requirements of local and state authorities. "The Florida Department of Environmental Protection has extremely rigorous standards for all permits that they issue," said Krohn. "We have met their standards. We have done everything right."

Krohn adds that the proposed plant is categorized as only a "minor source of emissions," and should be of no concern to PEL. He points out that Port Sutton is the most heavily industrialized site in Tampa Bay, including a sulphur and ammonia terminal, not to mention diesel emissions form the heavy ships passing through the port.

While this blog is an advocate of alternative energy, I would not wish to prejudge the dispute between Envirofuels and PEL. However, I have followed US Envirofuels for more than a year and I have been been impressed by their highly professional and committed approach to biofuels. Common sense would seem to indicate that PEL does not have much cause to complain. If it is concerned by contamination affecting its environmental testing, why is it located in one of the most polluted areas of Tampa Bay? Compared to some of PEL's other noxious neighbors, US Envirofuels would appear to be much less of a pollution concern.

Click here to read the story in the St Petersburg Times

- David Adams

Polar bears. Is their threatened demise a wake-up call for humans?

You have probably all read in the last few days about the predicament facing polar bears and the melting ice cap. CNN International had a very good report yesterday. But the Miami Herald's Pulitzer prize-winning editorial cartoonist, Jim Morin, topped everyone this morning with this cartoon (click on the image to enlarge.)

In case you haven't heard, new studies suggest that polar bears could be extinct by the end of this century due to the rapid loss of their natural habitat. Increasing numbers of polar bears are showing up dead, either from starvation and/or from drowning, as they struggle to find food (seals basically) and end up stranded on melting ice.

Click here to view the CNN report.

Click here to read a BBC report on the latest 25 sq mile break in the ice shelf in the Canadian Arctic.

- David Adams

Former oilman speaks out on biofuels

I'd like to share with you this 'letter to the editor' I read in the Miami Herald this morning under the title: 'Ethanol good for Florida's future.'
It's from Amoco Oil's former president for Latin America, Jorge Pinon. By coincidence, I have a meeting with Mr Pinon tomorrow morning (he's a researcher at the University of Miami's Cuba Institute), so I will flesh out some of these ideas some more. It's always good to hear about biofuels from former oilmen!! It's also a very succint and objective analysis.

Here's his letter:

Re the Dec. 19 story Gov. Bush throws support behind ethanol initiative: Jeb Bush said that domestic and imported sugar-cane ethanol would have a positive impact on Florida's economic and environmental future. I agree:

• Ethanol would help reduce our dependence on foreign oil.

• It emits fewer smog-causing pollutants than gasoline.

• It is a sustainable-renewable energy source.

• Sugar-cane ethanol has a production and energy cost advantage over corn-based ethanol.

Sugar-cane ethanol would help create agricultural jobs and support economies of the Caribbean and Central America and, Yes, that of a future free Cuba, helping to abate illegal immigration to our shores.

As a transportation fuel, ethanol can be used as a total or partial replacement for gasoline. Gasoline containing 10 percent ethanol -- E10 -- keeps engines running smoothly without the need for lead or other chemical additives and is used in many urban areas today that don't meet clean-air standards. All vehicles that run on gasoline can use E10 without making changes to the engines.

E85 is an alternative fuel that is 85 percent ethanol and 15 percent gasoline. Vehicles are not modified to run on E85; they are specially manufactured as Flexible Fuel Vehicles. They can use any mixture of ethanol and gasoline up to E85. There are more than 750,000 light-duty vehicles in the United States using E85, mostly pick-ups and SUVs.

Having said this, consumers should not overestimate the contributions of ethanol: The retail price of ethanol E85 will always be competitively priced with petroleum-based fuels; according to a recent Consumer Reports, E85 has a lower fuel economy (10 miles per gallon) than gasoline, at 14 mpg; the petroleum marketing industry would still face the challenge of how to finance $200,000 of capital investments needed to retrofit each service station that would like to market E85.

As the third-largest gasoline consumer state in the nation with an average of 23.6 million gallons per day and with its competitive advantage in producing, importing and distributing sugar-cane ethanol, Florida would be a natural market for the promotion and development of this renewable and environmentally friendly fuel.

JORGE R. PINON, former president, Amoco Oil Latin America, Miami

Pinellas County wins Green award

Happy Holidays to those of you dedicated enough to visit The Fueling Station today. I couldn't let you down by not having a new post for you. So here is my Christmas Day entry:

Belated congratulations to Pinellas County on Florida's west coast for becoming the first local authority in the state to earn a coveted 'Green County' designation.

The formal announcement was made Oct. 31 but I only learned about it the other day. At the announcement the County Commission Board Chairman Kenneth Welch spoke about the county’s environmental programs, while praising former leaders of the county for their foresight in starting so many initiatives.

“This designation doesn’t stop with the award. The coalition encourages governments to partner with the private sector and join in new efforts to improve and preserve our environment," he said. "We look forward to sharing ideas that will help our community to be a greener place to live.”

Some of the reasons Pinellas County earned the distinction (by department):

* Utilities: for efforts at water conservation and progressive solid waste collection
* Public Works: for use of LED traffic signal lights
* Environmental Management & Parks and Recreation: for efforts to preserve wildlife habitat and properly care for public lands
* Community Development: for their use of EnergyStar appliances in affordable housing units
* Fleet Management: for use of Biodiesel in the county’s fleet of diesel-powered vehicles
* Planning Department: because of integration of green land management policies into the County’s overall plans

The Florida Green Local Government Standard was created by the Florida Solar Energy Center (FSEC), working under a contract from the U.S. Department of Energy and the Florida Energy Office.
Click here for more information about the award.

- David Adams

Volvo's new ethanol concept.

Here's the latest in ethanol concept cars from Volvo.

The Volvo 'flex-fuel' XC60 is due to make its world debut at the Detroit auto show in January. It's a six-cylinder, 3.2-litre ethanol engine. The company says the car's engine offers dynamic performance with 80 per cent lower carbon dioxide emissions compared with the same engine running on gasoline.

“We believe that the FlexiFuel also has great potential for larger engine sizes and we are planning to expand our range of bio-ethanol-powered engines in the coming years,” says Magnus Jonsson, Senior Vice President, Research & Development at Volvo Cars.

The Volvo XC60 uses the same engine as the Volvo S80. The engine has been optimised for E85 (85 percent bio-ethanol, 15 percent ethanol). This gives acceleration from 0–60 mph in 8.2 seconds and a top speed of approximately 143 mph. Fuel economy when running on E85 reduces to 19.2 mpg, as the energy content of ethanol is lower than gasoline.

(Click here for more details on the Volvo XC60 from Automotoportal.com)

Volvo is introducing its new line of ethanol-ready cars in both Europe and the US. The demand for ethanol is growing steadily in Europe, but it still small compared to the United States or Brazil. The European Union member states can currently count only 23 ethanol plants, compared to 101 in the US. Europe produces about 720 million gallons of ethanol compared to 4.8 billion in the US. However, Europe's capacity is expected to increase three-fold by 2008.

- David Adams

Brewers grow monster cane for ethanol.

When I visited Brazil's sugar cane industry last year I was struck by how many delegations of Japanese I ran into. Everywhere I went a group of Japanese businessmen was either just leaving or just arriving. There's a reason for this. Japan is a signatory (and host) of the Kyoto Protocol and is thus serious about meeting its commitment to reducing greenhouse gas emissions.

Due to its geographical limitations, Japan will never be a major producer of biofuels. But it's still putting its industrial know-how into exploring ways to reduce its importation of foreign oil.
    
In the race to improve the efficiency of biofuels, Brazil has been promising to introduce new higher-yield strains of sugar cane. But Japan may have been beaten them to it. A friend sent me this link to a recent Reuters story about a strain of Japanese 'Monster Cane' produced by beer maker Asahi Breweries, which is said to produce astonishing yields of ethanol.

The cane grows up to three metres tall and is extremely hardy in poor soil and harsh weather conditions. It yields twice as many stems as most sugarcane. So far its only been grown on a test field on the tiny island of Ie in Japan's southernmost district of Okinawa.

Monster Cane was jointly developed by Asahi and the National Agricultural Research Centre for Kyushu Okinawa Region.

Asahi says the new cane variety can produce three times as much ethanol as other strains, and slightly more sugar. It also yields more bagasse, the fibrous residue from crushed cane, which is burnt to generate the energy to run a refinery.

Asahi estimates the yield of the new sugarcane at 37.4 tonnes per hectare, which can be processed into 7.1 tonnes of sugar, 4.3 kilolitres of ethanol and 24 tonnes of bagasse.

This compares with the yield of a conventional cane type at 17.4 tonnes per hectare, sugar output at 6.9 tonnes, ethanol production at 1.4 kilolitres and bagasse volume at 7.8 tonnes.

Japan has also recently announced that it is encouraging its vehicle manufacturers to produce more flex-fuel vehicles. Japan is planning to mandate 3% ethanol to be used in all gasoline, which will require roughly half a million gallons of ethanol per year.

Japan is also investing in Brazil's biofuels industry. In October Brazil and Japan agreed to a pact involving about $1.3 billion in Japanese investments in Brazil’s ethanol and biodiesel industries.

Japan is also busy developing a strain of long-grain rice called Hokuriku 193, to produce ethanol! (click here)

Click here to read the full story on Monster Cane.

- David Adams

            

                                                   

When I visited Brazil's sugar cane industry last year I was struck by how many delegations of Japanese I ran into. Everywhere I went a group of Japanese businessmen was either just leaving or just arriving. There's a reason for this. Japan is a signatory (and host) of the Kyoto Protocol and is thus serious about meeting its commitment to reducing greenhouse gas emissions.

Due to its geographical limitations, Japan will never be a major producer of biofuels. But it's still putting its industrial know-how into exploring ways to reduce its importation of foreign oil.
    
In the race to improve the efficiency of biofuels, Brazil has been promising to introduce new higher-yield strains of sugar cane. But Japan may have been beaten them to it. A friend sent me this link to a recent Reuters story about a strain of Japanese 'Monster Cane' produced by beer maker Asahi Breweries, which is said to produce astonishing yields of ethanol.

The cane grows up to three metres tall and is extremely hardy in poor soil and harsh weather conditions. It yields twice as many stems as most sugarcane. So far its only been grown on a test field on the tiny island of Ie in Japan's southernmost district of Okinawa.

Monster Cane was jointly developed by Asahi and the National Agricultural Research Centre for Kyushu Okinawa Region.

Asahi says the new cane variety can produce three times as much ethanol as other strains, and slightly more sugar. It also yields more bagasse, the fibrous residue from crushed cane, which is burnt to generate the energy to run a refinery.

Asahi estimates the yield of the new sugarcane at 37.4 tonnes per hectare, which can be processed into 7.1 tonnes of sugar, 4.3 kilolitres of ethanol and 24 tonnes of bagasse.

This compares with the yield of a conventional cane type at 17.4 tonnes per hectare, sugar output at 6.9 tonnes, ethanol production at 1.4 kilolitres and bagasse volume at 7.8 tonnes.

Japan has also recently announced that it is encouraging its vehicle manufacturers to produce more flex-fuel vehicles. Japan is planning to mandate 3% ethanol to be used in all gasoline, which will require roughly half a million gallons of ethanol per year.

Japan is also investing in Brazil's biofuels industry. In October Brazil and Japan agreed to a pact involving about $1.3 billion in Japanese investments in Brazil’s ethanol and biodiesel industries.

Japan is also busy developing a strain of long-grain rice called Hokuriku 193, to produce ethanol! (click here)

Click here to read the full story on Monster Cane.

- David Adams

            

Oil incentives. Do they help the US?

Here's more evidence - if anyone needed it - of the U.S. oil industry's hypocrisy over its complaints about alternative energy subsidies.

According to a new report by the Interior Department, the United States offers some of the most lucrative incentives in the world to companies that drill for oil in publicly owned coastal waters - but gets little in return for its money.

The Interior Department sat on its own study for more than a year, according to a front page report in the New York Times today; 'Incentives on Oil Barely Help the US, Study Says.'
The report estimates that current inducements could allow drilling companies in the Gulf of Mexico to escape tens of billions of dollars in royalties. But the study predicts that the inducements would cause only a tiny increase in production.

The oil industry argues that domestic drilling incentives help reduce dependence opn foreign oil. That may be true, but  others point out that this money would be better spent on providing incentives to  produce domestic, non-fossil fuel alternatives.

The NYT cities industry analysts who say the United States was much more generous to oil companies than most other countries. In addition, the United States has sweetened some of its incentives in recent years - despite higher oil prices -  while dozens of other countries demanded a bigger share of revenue.

In the United States, the federal government’s take — royalties as well as corporate taxes — is about 40 percent of revenue from oil and gas produced on federal property. By contrast, the worldwide average government take is about 60 to 65 percent.

The paper points out this balance could be about to change as Democratic leaders in Congress have already vowed to roll back royalty incentives and tax breaks for drilling companies when they take control of the House and Senate in January.

Click here to read the article.

- David Adams

Solar stocks: Think China

Here's the latest word in our continuing feature of renewable energy stocks from Rona Fried, Editor of Progressive Investor.

Rona writes:

Solar manufacturers based in China have found the USA to be a good source of capital through our public markets.

After the hugely successful Suntech Power (NYSE: STP) IPO a year ago, others are following suit. Suntech raised US$396 million on the NY Stock Exchange and is now one of the world's leading solar stocks. Since then, Canadian Solar (Nasdaq: CSIQ), based in China and incorporated in Canada, launched an IPO on Nasdaq. The company raised $116 million, giving it a market cap of $409 million. This week, Trina Solar (NYSE: TSL) raised $98.1 million and today, Solarfun Power Holdings (Nasdaq: SOLF) launched an IPO on Nasdaq.

Rona is also CEO of SustainableBusiness.com an "Internet community for businesses that integrate  economic, and social and environmental concerns into their core strategy. In short, we help green business grow."
I strongly recommend you take the time to visit Rona's website and sign up for the various insider investor newsletters offered by Sustainable Business.

- David Adams

Airlines to be penalized for polluting the skies.

Europe is moving forward with plans to penalize the airlines for polluting the skies, reports the New York Times. The plan is to impose extra charges on the airlines starting in 2011. In so doing the European Union is effectively extending the Kyoto Protocol guidelines to the airlines, which were previously exempt from consideration of their contribution to GHGs (greenhouse gases).
Experts say this will likely drive up the price of airline travel, potentially adding some $3.8 billion globally to airline running costs.

Click here to read the story.

- David Adams

Oil shale's 'cautious U.S. boom.'

I have written about Colorado's oil shale exploration before (see my Sept 5 post on a report by Robert Collier at the San Francisco Chronicle.)  The New York Times has a big story today about what it calls 'The Cautious U.S. Boom in Oil Shale,' led by Shell, Chevron and a Texas company, EGL Resources.

Click here to read the story.

- David Adams

Boston opting for green building standards. First city in the nation.

Boston is expected to become the first major city in the nation to require private developers to adhere to a strict set of so-called green-building standards, according to The Boston Globe.

The standards will be required before permits are issued for all projects of 50,000 square feet or more. The goal is to make new buildings more energy efficient and environmentally friendly, by promoting, for example, use of efficient heating and cooling systems, recycled building materials, and careful separation and disposal of waste.

The Boston standards will not require buildings be certified under the green building rating system known as Leadership in Energy and Environmental Design (LEED) of the US Green Building Council.
Instead, its standard will be simpler, though officials say the environmental standards will be almost the same.

Click here to read the article.

Gardening tips for climate change.

As the climate changes so we are all having to adapt our habits. That might seem imperceptible to most of us at present. But one place where it's not hard to detect is in the garden. "Climate changes are rewriting the books on planting patterns," the New York Times writes today in its 'In The Garden,' section.

Click here to read the article.

- David Adams

Global carbon trade. Big profits and questionable results.

I don't know where to start this morning! There was so much to read in the New York Times, from the debate over carbon trading, the new interest in Colorado oil shale, to penalties for airlines polluting the skies in Europe, green building codes in Boston and global warming weather tips for gardeners!

First off is an insightful front page story on the pros and cons of global carbon trading: 'Outsize Profits and Questions, in Effort to Cut Emissions.' This article is part of the NYT's excellent series, 'The Energy Challenge,' which remains by far the most informative mainstream media outlet on energy issues.

The article highlights some of the financial behind the scenss trading that goes in these deals, which appear to be making bankers rich while not doing as much for the environment as the innovators of the idea might have hoped. It cites the extraordinary case of a highly polluting Chinese chemical factory which is being decontaminated  with carbon trading funds at a cost of $500 million, 100 times what the operation should cost!

Click here to read the article.

- David Adams

Green Forum in Miami

Here's a good upcoming event for your calendar next year: The Green Forum , April 19-20 2007

The forum is part of a series of events and conferences organized by Poder Magazine to further the discussion of industry trends and market opportunities.

"Environmental protection and the conservation of our natural resources are increasingly drawing the attention of governments, citizens, and corporations. As a result, many are now recognizing a collective responsibility to maintain sustainable economic vitality while encouraging environmental accountability," the organizers say.

The day-long event promises to bring together experts from the fields of science and economics along with government, environmental advocates, business and civic leaders. The keynote speaker is former vice president Al Gore.

Click here to see the Green Forum's cool video promo of the event.
Click here for details of the event.

- David Adams

How Congress caved in to Gulf drilling

Grist's 'Muckraker' column also has a caustic analysis of the parting nod to offshore drilling in the Gulf of Mexico by the 109th Congress.

Republican leaders managed to push through a provision to open up 8.3 million acres on the outer continental shelf of the eastern Gulf of Mexico to oil and gas development.

Click here to read how Congress caved in.

- David Adams

Grist for biofuels discussion

Grist, the environmental news website, just concluded an intriguing series of stories about biofuels, looking at the corporate push for it, the governmental policies that benefit it and the impact of its production on the environment. The concluding piece makes a few points worth discussing, including this one:

"U.S. biofuel policy is endlessly generous -- and hopelessly incoherent.

"U.S. governmental institutions subsidize biofuel use in a dizzying variety of ways, with goodies lurking everywhere from local tax codes to the federal Energy Policy Act of 2005. Key lawmakers from both parties have signaled that the farm bill, up for renewal next year, will contain yet more ethanol incentives.

"In a long study for the Geneva-based Global Studies Initiative designed to quantify U.S. public support for biofuel, Doug Koplow encountered 'hundreds of programs now in place to subsidize nearly every stage of the ethanol and biodiesel supply chains.' And there are more on the way: 'The National Biodiesel Board, for example, notes that it is tracking more than 160 pieces of legislation at the state level for biodiesel alone.'

"Koplow figures that these policies, which operate with zero coordination, will soon deliver upward of $6 billion annually in benefits to the biofuel industry. Clearly, before governmental bodies serve up yet more goodies, it's time for a hardheaded balancing of costs and public (e.g., environmental) benefits."

To read the final story, with links to the rest of the series, go to:

http://www.grist.org/news/maindish/2006/12/15/conclusions/index.html

--Craig Pittman

Bush op-ed on ethanol's promise (with audio link)

Jeb Bush has an op-ed in today's Miami Herald about ethanol's "great promise for America."

A day after he helped launch the Interamercian Ethanol Commisison, Bush lays out his hemispheric case for promoting biofuels to increase protection for the environment and reduce dependence on foreign oil.

"While the price of gas at the pump has dropped in re- cent months, the 'ethanol exuberance' has not subsided. Most Americans - along with government and business leaders - recognize ethanol's tremendous promise for energy security and a cleaner environment," he writes.

Colombia, Argentina, Costa Rica, El Salvador, Guatemala and Jamaica are all reportedly exploring ethanol production, he says. The new commission will seek to help advance those projects projects by incorporating them into a regional framework and market.

Bush writes that the commission will serve three main functions:

* a resource for policymakers and the public on ethanol production, distribution and investment
* advocating policies and practices that encourage increased production and consumption of ethanol in the Americas
* conducting research to determine where export capacity is viable and consistent with sound environmental and economic precepts.

"The commission will work with the IDB and other development-focused organizations to maximize the potential for renewable fuel for cars, but also for growth and opportunities in some of the poorest countries in the hemisphere, like Haiti and Nicaragua," he writes.

Click here to read the full article.
Click here to read today's story on the commission's launch in the St Petersburg Times.
Click here to read today's story on the commission's launch in the Miami Herald. This link also has audio of the commission launch meeting at the Biltmore Hotel on Monday.

- David Adams

Ethanol Commission launched in Miami

It's a bold new venture; the creation of a hemisphere-wide ethanol market. If it works, all of Latin America - not just Brazil alone - could become the global model for energy diversity and inter-dependence.

(see below for photo info)

Congratulations to Florida Governor Jeb Bush for showing his commitment to renewable energy in his waning days in office by signing on as co-chairman of the newly-launched Interamerican Ethanol Commission.

(Click here for audio of Bush's speech)

The commission is very much the fruit of Bush’s personal quest in the last two years to shift Florida away from its current dependence on foreign oil, while at the same time creating a cleaner, more sustainable fuel economy. Sure, he had some nudges and prods along the way from the folks at Florida FTAA, but that only shows that Bush is a good listener who is receptive to new ideas.

Monday’s launch at Miami's Biltmore Hotel was the culmination of a series of contacts this year between Bush and Brazilian agriculture officials over the potential for hemispheric free trade in cleaner-burning biofuels, which can be blended with gasoline.

Bush became intensely aware of the grave risks of foreign oil dependence to the Florida economy during the 2005 hurricane season when storms shut down Florida’s main ports, as well as Gulf of Mexico refineries, disrupting oil supply and forcing a dramatic spike in gas prices.

Rather than buy oil from hostile nations such as Venezuela, which supplies about 12 per cent of daily U.S. petroleum needs, Bush said U.S. dollars would be better spent on buying biofuels from friendly countries such as Brazil, Colombia, and smaller countries in Central America and the Caribbean.
“That just cries out common sense,” he said, a reference to Venezuela’s leftist president Hugo Chavez, who is on a mission to undermine United States influence in Latin America.

For now, the biggest challenge was to “change the thinking in this country,” Bush said.
That will also be the main task of the new commission which plans to be a regional advocate for renewable fuels, helping countries develop their own energy strategies as part of  an effort to build a global commodity market for ethanol. The commission plans to begin by funding regional research on potential supply and demand, before undertaking a hemispheric ‘roadshow’ to sell the concept country by country.

As a sign of growing business interest in the concept, the breakfast launch was attended by a large group of Brazilian ethanol industry leaders and U.S. businesses. Many were invited to stay on after the launch for the commission’s inaugural meeting. "The intellectual horsepower these guys bring to this meeting is amazing," said Mark Emalfarb, CEO of Dyadic, a Florida biotech firms leading the field in cellulosic ethanol (cutting edge technology to make ethanol from fibrous plant matter).   

In another sign of the broadening base of support for Bush’s push for ethanol, the commission launch was attended by Florida Agriculture Commissioner, Charles Bronson. Some American farmers, especially U.S. corn-growers in the Mid-West, are wary of low-cost ethanol producers such as Brazil, fearing it will undermine their own fast-growing corn-based ethanol industry. But Bronson sensibly stressed that the potential market for ethanol was so huge, they have nothing to fear. “There’s plenty of room to work with countries like Brazil,” he said. "If Brazil and the U.S. can work together towards this agenda then we can do a  lot of things," he added. "If we stick to our tactical positions we won't go anywhere."

Even so, on Dec 8 the U.S. Congress passed an extension of the 54-cent-per-gallon tariff on imported ethanol until 2009.
But countries such as Brazil aren't making a big deal of it. In fact, the tariff has become a minor issue of concern. While Brazil is expanding its ethanol production, domestic consumption is so large it currently doesn't have a lot left over to export. (Some sugar mills have also increased their sugar production to take advantage of the high world market price for sugar). Wisely, Brazil is far more focused on the creation of a global commodity market for ethanol as a guarantor of the long-term viability of ethanol. Some critics of ethanol have misread this to mean that ethanol producers arrogantly presume to take over the gasoline market, lock, stock and barrel. Far from it. The immediate goal of the Brazilians is actaully quite modest: a hemisphere-wide E10 brand of gasoline (blended with 10 per cent ethanol).

At this stage, even a 10 per cent reduction in pure gasoline consumption would be a major step. Coupled with other emerging technologies - biodiesel, biomass waste-to-electricity, wind, and solar -  this would  put us firmly on the right path.

While the challenge before the commission is substantial, Bush is far from alone in taking it on. His two co-chairs on the commission are both formidable allies: Inter-American Development Bank president, Luis Moreno, and former Brazilian agriculture minister Roberto Rodrigues.

Moreno pointed out that the IDB has long been an advocate of biofuels, as far back as the 1970s when it helped Brazil begin to develop its nascent sugar cane for ethanol program.
“Many people thought biofuels were a crazy idea,” he said. “We all now know the fruits of that visionary effort,” he added, referring to Brazil’s enormously successful ethanol program, coupled with its ‘flex-fuel’ technology which allows cars in Brazil to run on either gasoline or ethanol, or any blend of the two.

Ethanol has enormous potential as a catalyst for rural economic development in low income regions, such as Central America, according to Moreno. An IDB study in Mexico recently found that replacing 10 per cent of that country’s gasoline consumption with local refined ethanol would save $2 billion a year while creating 400,000 jobs.

Moreno also credited Bush with a longstanding commitment to Latin America. “His passion for this hemisphere has never been an afterthought,” he said. By taking on the ethanol issue, Moreno added that Bush would also be helping change the future lives "of many Latin Americans.”

The launch of the commission was the emotional fulfillment of a three decades-old dream for Rodrigues, one of the pioneers of Brazil’s ethanol strategy.
Rodrigues painted a more grandiose picture of the commission's ethanol mission. It was all about building a revolutionary new fuel economy that was free of oil.
"For the last 35 years, I have been thinking how stupid has been humankind to build a whole civilization over oil, which is something that is going to finish one day,"  he said. “What we are doing here is launching a new civilization,” he said, built on biofuels. “We are doing something for our grandchildren and great grandchildren.”

Near the end of the launch Bush was asked a question by a reporter that is surely on the minds of many who study this issue. Did he regret not having launched his ethanol initiative earlier in his term as Governor? The question was partly aimed at his family's long history of association with the oil industry. His answer revealed why Jeb Bush has become such an able politician. Instead of taking umbrage at the question, he answered it in a thoughtful way that made any honest observer question our collective addiction to oil over the last 100 years. "It's human nature to do the same thing over and over again," he said, referring to the ease with which we all became accustomed to cheap oil. "It's the way we are."

However, he pointed out that things have changed. Now that we don't have the presumption of cheap oil any more it's time "to do the uncommon thing," he said "and look over the horizon." There was no point crying over the past, he said. The important thing was to find a way to stop living "the tyranny of the present."

Click here to read the Paul Dana story about how the IndyCar Racing Series adopted ethanol.

Click here for my August 25 story on Jeb's 'ethanol exuberance.'

(Pictured at top in the photo with new ethanol-fueled IndyCar, left-to-right: Gov Jeb Bush, Guillermo Villar, President & CEO Commercebank, IDB President Luis Moreno, and former Brazilian Minister of Agriculture, Roberto Rodrigues)

- David Adams

Launch of Interamerican Ethanol Commission

Tomorrow morning (Dec 18) sees the official launch in Miami of the Interamerican Ethanol Commission, an intriguing joint enterprise between biofuels advocates in Florida and Brazil, led by Florida Governor Jeb Bush, Brazil's former Minister of Agriculture, Roberto Rodrigues, and the president of the Inter-American Development Bank, Luis Moreno.

The commission represents an alliance of one of America's most fuel-dependent states - Florida - with perhaps the most fuel self-sufficient country in the world - Brazil. As such it shows remarkable vision on both parts.

Under the leadership of Gov Bush, the state of Florida has begun to wake up to the importance of addressing its dependence on foreign fuel, as well as the benefits of developing potentially large domestic biofuel resources.

For its part, Brazil is hoping to use this kind of alliance to build confidence in a global market for ethanol, which is the surest way to guarantee the enormous investment it has made in ethanol. Brazil and the U.S. are the world's largest producers from ethanol, but Brazil has a far more extensive biofuels distribution network, with thousands of pumps around the nation.

The commission is being created to foster awareness of the benefits of renewable fuels in the Americas. The commission will also seek to help build the framework of a regional marketplace in ethanol, promoting foreign and domestic investment in environmentally sound renewable fuel production and infrastructure.

The origin of the Interamerican Ethanol Commission dates back to April this year when Governor Bush submitted a detailed nine-page position paper drawn up by Florida FTAA to President Bush, recommending “a comprehensive ethanol strategy for the U.S. and our hemisphere.” The position paper addressed Governor Bush's growing recognition of the need to diversify fuel supplies due to soaring oil prices and the vulnerability of Florida's fuel supply system demonstrated by the devastating 2005 hurricane seasoon.

It advocates a "15 by '15" Ethanol Initiative aimed at setting a goal in the United States of consuming 15 billion gallons of ethanol annually by the year 2015.
In June, Gov Bush met with Roberto Rodrigues, the former Brazilian Minister of Agriculture  in Miami. They discussed the possibilities of a partnership between the State of Florida and the State of Sao Paulo, emphasizing Brazil’s role as a global leader in ethanol technology, production and distribution.

In August, Florida FTAA Executive Director Brian C. Dean led a delegation on behalf of Gov Bush to Brazil seeking to strengthen partnerships to advance the Governor’s “15 by ’15” Ethanol Initiative. During this mission it was agreed that Florida and Brazil would work together to create a commission for regional ethanol cooperation. It was decided that Roberto Rodrigues would represent the commission for Brazil, serving as Governor Bush’s counterpart. Bush and Rodrigues then asked for the support of the Inter-American Bank, and Ambassador Moreno agreed to join the commission as the third co-chair.

Click here for my Aug interview with Gov Bush about his ethanol exuberance.

Click here to visit the website of the Interamerican Ethanol Commisison.

- David Adams

The Climate Code on the Weather Channel.

Have you caught the Weather Channel's bold new show on global warming, 'The Climate Code?'

The half-hour show appears on Sundays at 5 p.m. and is repeated on Saturdays.

It's hard to compete with weekend sports programming but it's still a start, especially if you have Tivo.

The program is hosted by Heidi Cullen, who has a Ph.D. in climatology and ocean-atmosphere dynamics from Columbia University.

The Climate Code is a direct result of the 2005 hurricane season which convinced the Weather Channel to launch a stand-alone show on the issue.The network had already quietly been developing its stand on the issue. As far back as 2004 the network put out a statement recognizing that global warming is real. The station's Climate Watch Initiative intends to:

• Educate viewers about climate change.
• Provide factual information to help viewers understand the impact of climate change on their lives.
• Inspire a sense of responsibility for the future of our planet.
• Empower viewers to take action and make a difference.

The Climate Code is coupled with a new climate change blog called One degree.

The show's timing is excellent. There's no question that climate change and alternative energy issues are increasingly a hot topic, even if many Americans are still asleep at the wheel.

I just watched Al Gore's documentary "An Inconvenient Truth" this week. It's being screened tonight in Miami if anyone wants to catch it. Check out the details of where and when at greenerMIAMI.com.

I'll be writing my impressions on the documentary shortly. Needless to say, the more people who see this film, the sooner the country will realize how time is running out and how urgently we need to take action.

- David Adams

Renewables on Wall St. 2006 was a good year. What about 2007?/

Renewable Energy Access offers an in depth audio round up on the year for renewables on Wall St.

Rob Wilder, who is CEO and Founder of Wilder Shares, talks about the ups and downs for renewable energy on Wall Street. He says investing in clean energy can be a risky proposition, but is optimistic about the market next year

Click here to listen to the half hour podcast, 'Inside Renewable Energy.'

- David Adams

Finding fuel. More web mapping help..

Trying to find out where you can fill up on alternative fuels? There are several websites that can help you.

Here's the latest very attractive interactive site from Mapmuse.com.

"We initially researched and populated these maps ourselves, with the idea in mind that alternative fuel enthusiasts would subsequently add to, and enhance, the information we provided," writes Cindy Jett at Mapmuse.com.

"We mapped each fuel station, and provided space for a written description, photo, and link to a website.  We have maps for the following types of fuel stations:

1.  biodiesel
2.  compressed natural gas
3.  electric fueling
4.  ethanol 85
5.  hydrogen fuel
6.  liquefied natural gas
7.  propane fuel

Since this project was started, the public has made hundreds of additions and enhancements to these maps. We now have one of the most comprehensive databases of alternative fuel stations in the US.
If you know of any alternative fuel stations that have opened or closed in the last 6 months, that you make those changes to the
maps. Also, we encourage you to add any alternative fuel stations that we are still missing."

One of our regular contributors, James Culp, at the Technological Research and Development Authority (TRDA) in Titusville, Florida, offers the following suggestion:

"The mapmuse folks need to contact NEVC (National Ethanol Vehicle Coalition) about partnering on this. The map is way more helpful than the NEVC listing method; however, the NEVC listing is more complete. Sounds like a good match!"

- David Adams

Citrus fuel getting more attention.

Here's the latest word in our continuing feature of renewable energy stocks from Rona Fried, editor of Sustainable Business.com:

Rona writes:

Next time you drink orange or grapefruit juice, you might be happy to know that half of the original fruit could be used as fuel.

As an example of how the biofuels industry is quickly evolving, Xethanol Corporation (AMEX: XNL), is building a first-of-its-kind plant that converts waste citrus peels to biofuels.
The plant will be located in Florida in the heart of the state's citrus industry. The pilot plant is expected to produce about 50,000 gallons of ethanol this harvesting season, and then increase to over 500,000 gallons per year.

In juice processing, half of a citrus fruit is waste. The venture is using technology developed with the USDA that converts waste citrus biomass into ethanol, as well as other marketable co-products, such as limonene and citrus oil, to improve the economics of fuel production.

Xethanol Corp's business model is based on developing small regional production facilities, located at or near the source of waste biomass. Placing processing facilities next to the biomass source reduces transportation and shipping costs.  Converting this waste into ethanol not only reduces and re-uses waste, but it also creates a tremendous economic opportunity for America's citrus growers."

Editor's note:

Xethanol has come under scrutiny for alleged misrepresentation of its corporate structure and its technology (see below). Rona tells us that while the company is indeed having problems the evolution of the technology is still worth examining. She adds:

 "we are not promoting the company at this stage because of the various potential problems."

SustainableBusiness.com is an "Internet community for businesses that integrate  economic, and social and environmental concerns into their core strategy. In short, we help green business grow."
I strongly recommend you take the time to visit Rona's website and sign up for the various insider investor newsletters offered by Sustainable Business.

Click here to check out a highly critical investigation of Xethanol by Sharesleuth.com.

Click here to read my Nov 4 post about Florida's own highly promising citrus-for-ethanol company, Citrus Energy.

- David Adams

Another small step for biodiesel

Earlier this year we reported on the IndyCar racing series adopting ethanol as their official competition fuel. Now biodiesel may be creeping into rally car racing's biggest event.

Audi Sport says it is aiming to become the first manufacturer to win the Le Mans 24 Hours race with biofuel in 2008, according to Auto Industry, a British government auto website. The report points out this would mark a logical step for Audi which this year became the first manufacturer to win the race with a diesel engine car.

Speaking at the recent World Motorsport Symposium in London, Audi Sport’s head of engine technology Ulrich Baretzky said, “We want to use the R10 programme to develop combustion technology for a future target for us in the VW Audi Group. That is to go a step beyond oil and gas based fuels. As soon as possible we would like to use Biomass to Liquid (BTL) fuel. That means that we will be using synthetic fuels made from renewable sources. The best part is that the transformation process can be CO2 neutral. All of the C02 absorbed by the plant is burned. That’s environmentally friendly motorsport and we hope to introduce BTL fuel in 2008.”

Click here for the report in Auto Industry, a publication of the UK Department of Trade and Industry.

A cleaner way to clean. The latest in biofuels adaptations: a biodiesel pressure washer.

Our innovative friends at HUGR Systems in Orlando have come up with another ingenious use for their biodiesel adaptation system.

HUGR has specialized in converting gasoline lawnmowers to run on cleaner, more efficient (and more powerful) biodiesel.
Now, the Parks Division for the City of Orlando is testing HUGR's new biofuel pressure washer. The owner, JP Patten, agreed to let city work crews use the machine for 30 days using fuel processed from leftover cooking grease supplied by local restaurants. HUGR's 3.5  horsepower diesel engine does the work of a normal 6 horsepower gas engine.
The main advantages are:
      - no burning of fossil fuel.
      - less wear on the engine.              
      - double the hours per gallon of fuel.
      - emissions are basically "air" with no noxious odor.
      - no harmful fumes.
      - no need to handle or store gasoline.  Bio-fuel is nonflammable and easily stored in plastic.

"We believe that the benefits are especially important in the downtown urban area where there is close proximity to citizens and visitors," writes John Perrone, Assistant Division Manager for the City of Orlando.

He adds:

"The only downside so far has been the slight smell of french-fries when the unit is being used causing employees to have cravings for their favorite fast food restaurant.  If the trial is successful, we may request your support in purchasing one of these units which cost the same as a regular gasoline unit."
            
Click here to visit HUGR Systems website.

- David Adams

Top execs start new energy security lobby.

A new bunch of heavyweights have entered the 'energy independence/security' fray.
Calling themselves the Energy Security Leadership Council, they represent top executives from major chemical, trucking and airline companies. They are apparently beginning a major lobbying effort to get the government to impose tougher fuel economy standards, on both cars and heavy trucks.
As with many energy security/independence groups, the group's focus appears to be less on a healthy planet, than on developing energy resources not in the hands of hostile nations. While they support the push for biofuels like ethanol, they also back increased US drilling, both on and offshore, echoing the position of some of the major oil companies (see my Oct 7 post on the speaking tour by Shell's US president, John Hofmeister).
The group, which includes bosses from Dow Chemicals, FedEx, and Southwest Airlines, is due to launch an ad campaign starting today. The group's co-chiarman is Frederick W Smith, founding CEO of FedEx.

Here's a few sentences from the group's mission statement:

"Even as the United States grapples with soaring high energy costs, too many Americans continue to underestimate the economic and national security vulnerabilities created by our deep dependence on oil. In an age of global terrorism, the country’s reliance on an inexpensive and uninterrupted supply of petroleum creates real dangers.

Historically, many U.S. corporations outside the energy industry have not played a major role in promoting government action that would improve energy security. Their absence has hampered efforts to implement needed reforms. As the American public and its political leaders wrestle with this critical issue, they deserve to hear from all sectors of the economy as well as from senior military officers who have defended the U.S."

Click here for the group's 'statement of principles.'
Click here for a report in the New York Times

- David Adams

The case for taxing C02 emissions.

In its latest 'Energy Challenge' series, the New York Times takes a look at fossil fuel economics and the case for federal regulation to impose a cost for emitting carbon dioxide.

The article, titled 'The Cost of an Overheated Planet,' reports that the concept is increasingly winning over converts, including some big names in industry. Among them is Duke Energy CEO, James E. Rogers, head of a coal-burning utility in the Midwest and the Southeast.

“Climate change is real, and we clearly believe we are on a route to mandatory controls on carbon dioxide,” says Rogers. “And we need to start now because the longer we wait, the more difficult and expensive this is going to be.”

Government action is required, analysts tell the NYT, because "without economic incentives the needed investments in industrial cleanup, innovative low-carbon technologies, fuel-efficient cars and other ways of reducing energy waste will not occur."

The article points out that California has already adopted a policy aimed at reducing the state’s contribution to global warming by 25 percent in the next 14 years.

In Washington, several influential lawmakers, including Senator John McCain, have introduced legislation intended to limit the nation’s carbon dioxide output.

Several experts are quoted arguing that a bold federal pricing mechanism for carbon emissions is necessary to provide the right kind of stable economic environment to enable companies to invest in clean technology.

"Only with some sort of federal policy in place — which would probably take the form of a tax on carbon dioxide waste from any source, or a “cap and trade” regulatory system — will it become clear what carbon cleanup or fuel-switching moves their companies may have to make, and on what sort of timetable," the newspaper writes.

Click here to read the article, which comes with a bunch of handy links.

- David Adams

Illinois town compromises on coal and wind.