Funky Fuels

Alternative energy sources—from algae to cow manure—that are really out there.

By Christopher Flavelle

 

  • Cassava

 

The United Nations’ Food and Agriculture Organization has looked at cassava, a potatolike crop grown across the developing world, as a possible feedstock for biofuel. Also known as tapioca and yucca, cassava is drought-resistant and needs less fertilizer than other crops, making it cheaper than corn.

Estimated production cost: $1.40 to $2.40/gallon.

Prospects: Moderate. Growing cassava for fuel could drive up food prices, either directly or by diverting land away from other crops. But developing countries may be eager to support a homegrown energy source.

 

  • Algae

 

Because it grows quickly, has a high oil content, and needs only sunlight and water, algae looks promising as a source of both ethanol and biodiesel. It also serves as a filter for dirty water and as a carbon sink. Ideally, an algae farm could be located downstream from a large-scale farm or factory, where it can clean the water of pesticides, carbon, and heavy metals.

Estimated production cost: $1 to $2/gallon.

Prospects: Good. Algae is cheap and easy to grow.

 

  • Beetle-infested timber

 

Thanks to the mountain pine beetle, some 500 million cubic meters of British Columbia’s lodgepole pine forest have been turned into a hole-riddled tinderbox. The province’s Lignol Energy Corp. is developing technology to turn the beetle-infested timber into ethanol. The job’s made easier by the insects’ own handiwork, which leaves the trees easier to break down.

 

Estimated cost: $1.50/gallon

Prospects: Moderate. Using trees for fuel will always risk pushback from environmentalists.

 

  • Cow manure

In 2004, the Central Vermont Public Service launched the Cow Power program, which pays dairy farmers to produce fuel in the form of methane, made from cow manure through a process called anaerobic digestion. There are 135 anaerobic digesters operating in the United States, according to the EPA. Those digesters produce enough energy to power some 25,000 homes.

 

Estimated production cost: Varied.

Prospects: Excellent. Anaerobic digesters are already widespread in Europe.

  •  Chicken fat

Oklahoma-based Syntroleum Corp. converts chicken fat into synthetic fuel, using a process it calls hydro-processing. The company says the fuel produced from chicken fat is chemically identical to regular, petroleum-based fuels.

 

Estimated production cost: Less than $2.40/gallon.

Prospects: Good. Barring an explosion in vegetarianism, otherwise-useless chicken fat will continue to be scraped off the floor of America’s industrial-size rendering plants for the foreseeable future.

 

  • Garbage

The ultimate alternative fuel source will need to boast some combination of worthlessness and abundance. The waste-to-ethanol process uses garbage that can’t be recycled or composted, like plastics and construction-wood waste, and turns it first into a gas and then a liquid. The final product is meant to be chemically identical to ethanol made from corn.

 

Estimated production cost: Too soon to tell.

Prospects: Excellent. If the technology promised by these plants works, expect to see a lot more of them.

Our Perspective:

Biofuels are paving the way to future energy independence. To date Ethanol has been the one product that everyone is aware of. It is made from corn. Below is an overview of other viable options that can be integral in developing future energy alternative fuels.

Let us know your thoughts?

Thursday July 16, 2009

In just a few short years, the Garden State has become the Sunshine State

BY JOE TYRRELL
NEWJERSEYNEWSROOM.COM

As Congress wrestles with national energy policies and gubernatorial candidates tout their plans here, New Jersey officials say the state deserves credit as a leader in promoting solar power.

In just a few years of coordinated efforts, New Jersey has gone from a non-factor to number two among the states in solar installations connected to the power grid. While far behind California, New Jersey currently generates about twice as many solar kilowatt hours as number three Colorado.

While applauding the gains, many in the industry also say the state, like the nation, has fallen well short of performance goals. New Jersey rose to the top of solar charts in a period when there was little competition from other states.

Now, as the federal government begins to pay attention to renewable energy, New Jersey is in the midst of a challenging transition away from an easy to understand program, which gave rebates to install solar power cells.

The new program shifts the focus away from consumers to utility companies and investors by creating a marketplace for renewable energy credits. The concept has its supporters, though many are more hopeful than confident.

Still, at a time when solar businesses believe the technology is on the verge of a belated boom in the United States, recent New Jersey statistics wowed some attendees at a recent industry conference in Philadelphia.

“Making this even more remarkable is that in 2001 New Jersey had only six” solar cell installations connected to the power grid, compared to more than 4,000 today, wrote Bob Haavind of Photovoltaics World.

His report can be viewed here.

During the session, the state’s top regulator, Board of Public Utilities President Jeanne Fox, proclaimed that when it comes to government policy, New Jersey is “the best place to do solar in the country.”

Around the country, many in solar trade groups and businesses credit New Jersey for showing what a small, partly cloudy state can do to grab its place in the sun.

“Obviously what they have been doing has worked,” said Monique Hanis, director of communications for the Solar Energy Industries Association in Washington, D.C.

“What makes New Jersey stand out is the specific language in the state’s energy master plan, calling for the generation of 2.1 percent of its electricity to be coming from solar in 2021,” said Neal Lurie, director of marketing and communications for the American Solar Energy Society of Boulder, Colo.

Closer to home, though, reactions are more muted.

The rebate program “came out of advocacy” by solar power proponents, “it was not a BPU idea,” said Delores Phillips, the society’s Mid-Atlantic executive director.

Even with improving technology and rising costs for fossil fuels, the cost of solar power remains higher than those dirtier energy sources. Solar advocates maintain other forms of energy benefit directly and indirectly from government subsidies, such as state funds to decommission nuclear facilities, or cleanups of coal ash landfills.

New Jersey’s small spurt of solar power materialized during a BPU rebate program that turned out to be too popular for the board’s limited financial commitment. The initial surge in applications eventually bogged down as the release of funds slowed.

So the board decided on an innovative approach, creating financial instruments, solar renewable energy credits, or SRECs. The idea is that investors buy credits from solar producers, each pegged to 1 megawatt of power. The investors help producers expand, while reaping benefits from energy sales to utilities.

“We’re all looking to see how it’s going to make out,” Hanis said.

Compared to the rebates, grants or tax credits offered elsewhere, New Jersey’s approach is more ambitious but “still a little bit vague for some people,” she said.

“It’s not really tried and tested,” Phillips said, adding it requires two inter-related factors to success.

To be attractive to investors, SRECs need to be based on reliable values, meaning utilities must contract for long-term power purchases, she said. To serve those utilities, the investments must finance enough power to meet their requirements for more clean power, she said.

Judged on that basis, “New Jersey’s program is good, but only half as good as they said it was going to be,” said Edward O’Brien, a partner in McConnell Energy Solutions of Wilmington, De. Last year, instead of a projected 90 megawatts of solar power, the state was at 45, the result of continuing uncertainty over credit values, he said.

The theory is simple, O’Brien said. While not completely supplanting the mom-and-pop approach to solar panels, securitizing the solar marketplace should put it on the same funding as other major energy sources.

“Why are you out putting solar panels up on your house, which is hard to do, instead of buying five kilowatts worth of solar power from some producer?” O’Brien said.

In practice, though, the SREC system “has not been fully thought out,” he said.

Added to the current recession, investors are cautious because of America’s patchwork of energy policies and regulations, which vary from state to state, O’Brien said. States have not helped by altering programs, he said.

“Every state is different, and every state has a bait-and-switch,” O’Brien said.

Still, he is optimistic that New Jersey will regain its momentum, and others in the field view the problems as a hiccough in the growth of solar power.

In the short-run, “there could be a shake-out” during the transition from rebates, said Rick Brooke of Jersey Solar in Hopewell. But 25 years in the business and a number of false dawns, this opportunity looks golden.

As long as the state SREC market allows small systems to participate, people who installed solar panels on the roofs of their homes or businesses still have a chance to participate, Brooke said.

Moreover, people in the industry are expecting good things from the energy bill making its way through Congress. Nearby states have launched incentive programs, whether inspired by New Jersey or California, which has roughly two-thirds of the nation’s grid-connected solar systems, Brooke said.

“It’s a good time to be in the business,” he said. “The state is committed to it, they have goals. People are moving ahead with it. Before, the interest came and went, but now it’s here.”

Rebates and SRECs are not the only way to support the growth of solar power. This month, Gov. Jon Corzine and Republican challenger Chris Christie each highlighted their support for renewable energy.

Democrat Corzine was able to announce the availability $20 million in federal grants for projects at public institutions in the state. Christie promised to create a new agency to promote clean energy technology and jobs, and would remove those functions from the BPU.

The Republican’s approach seemingly echoes Phillips’ complaints about the board’s “antiquated” procedures and primary purpose to regulate rates. But she said members of her association “were very underwhelmed by Chris Christie’s plan,” because it looks at the big picture and avoids the nitty-gritty.

While the Corzine Administration has set laudable goals for increasing clean energy, Phillips said most of the growth in solar power can be traced to his predecessor, former Gov. Jim McGreevey. There’s been “some stagnation” in state efforts since then, she said.

“Everybody likes to talk about clean energy job creation, but nobody explains how they’re going to do it,” she said.

Whether the New Jersey approach catches on remains uncertain. Around the nation, some communities are coming up with their own answers. Many solar advocates are looking beyond America to more successful programs abroad.

For more information on state incentives for renewable energy, visit njcleanenergy.com.

Our Perspective:

NJ has made great strides to join the alternative energy evolution. Not to say it is perfect, but for the first time people can see an acceleraed return on their investment that makes sense.

Rebates for systems under 5okw and the REC program has allowed funding to help underwrite these investments. Add the Federal incentives of a 30% tax credit and accelerated depreciation and the market is positioned to take off.

Would you like to know more? Contact us 856-857-1230 or email george@hbsadvantage.com.

We can provide an overview of your return on investment and help to develop the opportunity and make it become a reality.

Visit us on the web www.hutchinsonbusinesssolutions.com

Written by John Porretto  July 14, 2009  AP

HOUSTON — Exxon Mobil Corp. said Tuesday it will make its first major investment in greenhouse-gas reducing biofuels in a $600 million partnership with biotech company Synthetic Genomics Inc. to develop transportation fuels from algae.

Despite record-breaking profits in recent years, the oil and gas giant has been criticized by environmental groups, members of Congress and even shareholders for not spending enough to explore alternative energy options.

One of the company’s requirements was finding a biofuel source that could be produced on a large scale. It says photosynthetic algae appears to be a viable, long-term candidate. If the alliance is successful, pumping algae-based gasoline at Exxon service stations is still several years away and will mean additional, multibillion-dollar investments for mass production.

“This is not going to be easy, and there are no guarantees of success,” Emil Jacobs, a vice president at Exxon Mobil Research and Engineering Co., said in an interview with The Associated Press. “But we’re combining Exxon Mobil’s technical and financial strength with a leader in bioscientific genomics.”

Jacobs said the project involves three critical steps: identifying algae strains that can produce suitable types of oil quickly and at low costs, determining the best way to grow the algae and developing systems to harvest enough for commercial purposes.

Besides the potential for large-scale production, algae has other benefits, Jacobs said. It can be grown using land and water unsuitable for other crop and food production; it consumes carbon dioxide, the greenhouse gas blamed for climate change; and it can produce an oil with molecular structures similar to the petroleum products _ gasoline, diesel, jet fuel _ Exxon already makes.

That means the Irving, Texas-based company will be able to convert the bio-oil into fuels at its own refineries and use existing pipelines and tanker trucks to get it to consumers.

The $600 million price tag includes $300 million for Exxon’s internal costs and $300 million or more to La Jolla, Calif.-based Synthetic Genomics _ if research and development milestones are successfully met.

“Even though this is a multiyear program, we both still consider it a very aggressive timetable, and it involves a lot of basic research,” said J. Craig Venter, founder and CEO of the privately held company. “As a result, you don’t know the answers until you’ve done these tests and experiments.”

Algae is considered a sustainable source for second-generation biofuels, which go beyond corn-based ethanol into nonfood sources such as switchgrass and wood chips.

Royal Dutch Shell PLC said earlier this year it would scale back large investments in wind and solar in favor of next-generation biofuels. The European oil giant is working with Canadian company Iogen Corp. on a method to produce ethanol from wheat straw, and partnering with Germany-based Choren Industries to develop a synthetic biofuel from wood residue.

Another oil major, BP PLC, plans to team up with Verenium Corp. to build a $300 million cellulosic ethanol plant in Highlands County, Fla.

For Exxon Mobil, the world’s largest publicly traded oil company, the biofuels investment is tiny compared with its spending to find new supplies of crude and natural gas.

CEO Rex Tillerson said earlier this year Exxon’s 2009 spending on capital and exploration projects is expected to reach $29 billion, up from the $26.1 billion it spent in 2008. The company said those levels are likely to remain in the $25 billion to $30 billion range through 2013.

Exxon Mobil shares rose 25 cents to $65.95 in trading Tuesday. They’ve traded in a range of $56.51 to $86.47 in the past year.

CHRIS KAHN | June 29, 2009 03:27 PM EST | AP

NEW YORK — The government will help companies build powerful solar farms in the desert Southwest by pre-qualifying huge swaths of federal land for development.

The Department of Interior said Monday it will designate 670,000 acres of federal land in Nevada, Arizona, California, Colorado, New Mexico and Utah as study areas for utility-scale solar projects.

The land will be divided into 24 tracts called Solar Energy Study areas.

Interior Secretary Ken Salazar said the department will work with states on environmental studies and permitting to speed solar development in those areas.

Our Perspective:

This is good news. Finally, the government is stepping forward and acknowledging the opportunities provided by alternative energy development.

I hope this is only the beginning!

Let us know your thoughts? You may leave a comment or email george@hbsadvantage.com

Written by H. Josef Hebert   AP 6/17/09

WASHINGTON — Legislation that would require greater use of renewable energy, make it easier to build power lines and allow oil and gas drilling near the Florida coastline advanced Wednesday in the Senate.

The Energy and Natural Resources Committee approved the bill by a 15-8 bipartisan vote. But both Democrats and Republicans expressed concerns about the bill and hoped to make major changes when it reaches the Senate floor, probably in the fall.

The measure’s primary thrust is to expand the use of renewable sources of energy such as wind, solar and geothermal sources as well as deal with growing worries about the inadequacies of the nation’s high-voltage power grid.

But the bill also would remove the last congressional barrier to offshore oil and gas development, lifting a ban on drilling across a vast area in the eastern Gulf of Mexico that Congress put off limits three years ago. Drilling would be allowed within 45 miles of most of Florida’s coast and as close as 10 miles off the state’s Panhandle area.

The Senate bill for the first time would establish a national requirement for utilities to produce 15 percent of their electricity from renewable sources, a contentious issue that is likely to attract heated debate.

Twenty-eight states currently have some renewable energy requirement for utilities, but supporters of the measure argue a national mandate is needed to spur such energy development.

The legislation also would give much wider authority to federal regulators over the nation’s electricity grid.

The Federal Energy Regulatory Commission would be given authority to approve the siting of high voltage power lines if states fail to act and would be given additional powers over cyber security on the grid.

Senate Majority Leader Harry Reid, D-Nev., has said he hopes to take up energy legislation after the August recess, although it’s uncertain whether it will be merged with separate legislation addressing climate change. The House is working on a climate bill that includes many of the same energy issues addressed by the Senate bill.

While the bill was approved by a safe margin in the committee its prospects in the full Senate are anything but certain. Several senators called it too weak in its support of renewable energy development, while others said it ignored nuclear energy and greater domestic oil and gas production.

“None of us got all we wanted,” said Sen. Jeff Bingaman, D-N.M., the committee’s chairman, who was forced to agree to a variety of compromises to give the bill a chance of advancing. Nevertheless, he said the bill would help shift to cleaner, more secure sources of energy.

Bingaman and many of the panel’s other Democrats had wanted at least a 20 percent renewable energy requirement. The bill requires 15 percent renewable use by 2021, but also would allow utilities to avoid a fourth of that mandate by showing improvements in efficiency. Renewable energy use could be cut further for utilities that increase their use of nuclear energy either from a new reactor or increased reactor output.

“This is an extraordinary weak bill,” said Sen. Bernie Sanders, I-Vt.

But Sanders voted to advance the bill, as did Sen. Bob Corker, R-Tenn. Both senators said they hoped the bill will be strengthened.

“I suspect their definition of strengthening might be somewhat different,” quipped Sen. Evan Bayh, D-Ind., whose own support of the bill came despite strong opposition to the federal renewable energy requirements on utilities.

Sanders wants the renewable energy requirement to be much higher, at 25 percent. Corker said the bill needs more to promote nuclear energy and domestic oil and gas production.

“We simply must do more to increase our domestic (oil and gas) production and use of nuclear energy,” said Sen. Lisa Murkowski of Alaska, the committee’s ranking Republican. Still, she voted for the bill which includes a commitment to increase loan guarantees for a natural gas pipeline in her state from $18 billion to $30 billion.

The bill also calls for establishing a new office to steer grants and loan guarantees to clean energy projects, including nuclear and those using technology to capture carbon dioxide; creating an oil products reserve to be used if there are supply problems; and creating federal standards for efficiency standards for new building.

The Chamber of Commerce said the bill shows progress toward crafting a comprehensive energy policy, but some environmentalists said it falls short of shifting the country away from fossil fuels. With its new offshore drilling, support for coal and nuclear energy “this bill fails to live up to the vision of a clean energy future,” complained Brent Blackwelder, president of Friends of the Earth.

H. JOSEF HEBERT | June 6, 2009 10:30 PM EST | AP

WASHINGTON — Thomas Alva Edison, meet the Internet. More than a century after Edison invented a reliable light bulb, the nation’s electricity distribution system, an aging spider web of power lines, is poised to move into the digital age.

The “smart grid” has become the buzz of the electric power industry, at the White House and among members of Congress. President Barack Obama says it’s essential to boost development of wind and solar power, get people to use less energy and to tackle climate change.

What smart grid visionaries see coming are home thermostats and appliances that adjust automatically depending on the cost of power; where a water heater may get juice from a neighbor’s rooftop solar panel; and where on a scorching hot day a plug-in hybrid electric car charges one minute and the next sends electricity back to the grid to help head off a brownout

It is where utilities get instant feedback on a transformer outage, shift easily among energy sources, integrating wind and solar energy with electricity from coal-burning power plants, and go into homes and businesses to automatically adjust power use based on prearranged agreements.

“It’s the marriage of information technology and automation technology with the existing electricity network. This is the energy Internet,” said Bob Gilligan, vice president for transmission at GE Energy, which is aggressively pursuing smart grid development. “There are going to be applications 10 years from now that you and I have no idea that we’re going to want or need or think are essential to our lives.”

Hundreds of technology companies and almost every major electric utility company see smart grid as the future. That interest got a boost with the availability of $4.5 billion in federal economic recovery money for smart grid technology.

But smart grid won’t be cheap; cost estimates run as high as $75 billion. Who’s going to pay the bill? Will consumers get the payback they are promised? Might “smart meters” be too intrusive? Could an end-to-end computerization of the grid increase the risk of cyberattacks?

Today’s grid is seen by many as little different from one envisioned by Edison 127 years ago.

The hundreds of thousands of miles of power lines that crisscross the country have been compared to a river flowing down a hill: an inefficient one-way movement of electrons from power plant to consumer. There is little way to provide any feedback of information to the power company running the system or those buying the electricity.

“The heart of a smart grid is to make the grid more flexible, to more easily control the flow of electrons, and make it more efficient and reliable,” said Greg Scheu, head of the power production division at ABB North America, a leading grid technology provider.

“The meter is only the beginning,” said Alex Huang, director of a grid technology center at North Carolina State University. He said that instead of power flowing from a small number of power plants, the smart grid can usher in a system of distributed energy so electricity “will flow from homes and businesses into the grid, neighborhoods will use local power and not just power flowing from a single source.”

There are glimpses of what the future grid might look like.

On the University of Colorado campus in Boulder, the chancellor’s home has been turned into a smart grid showhouse as part of a citywide $100 million demonstration project spearheaded by Xcel Energy. The home has a laptop-controlled electricity management system that integrates a rooftop solar panel with grid-supplied power and tracks energy use as well as equipment to charge a plug-in hybrid electric car.

Florida Power & Light is planning to provide smart meters covering 1 million homes and businesses in the Miami area over the next two years in a $200 million project. Smart meters are being distributed by utilities from California to Delaware’s Delmarva Peninsula.

“We’ve got about 70 (smart grid) pilots all over the country right now,” said Mike Oldak, an expert on smart grid at the Edison Electric Institute, which represents investor-owned power companies.

Center Point Energy, which serves 2.2 million customers in the metropolitan Houston area, expects to spend $1 billion over the next five years on smart grid. Residential customers are seeing an additional $3.24 a month on their electric bills, but Center Point says that should be more than offset by energy savings.

An Energy Department study projects energy savings of 5 percent to 15 percent from smart grid.

“This pays for itself through efficiency and demand reduction and if you don’t look at it from that perspective you won’t get your money back,” said Thomas Standish, group president for regulated operations at Center Power Energy.

The cost and payback have some state regulators worried.

“We need to demonstrate to folks that there’s a benefit here before we ask them to pay for this stuff,” says Frederick Butler, chairman of New Jersey’s utility commission and president of NARUC, the national group that represents these state agencies.

Energy Secretary Steven Chu, said the current grid stands in the way of increasing the use of renewable energy sources such as wind and solar that “will need a system that can dispatch power here, there and everywhere on a very quick basis.”

But Chu and others also worry about security. “If you want to create mischief one very good way to create a great deal of mischief is to actually bring down a smart grid system. This system has to be incredibly secure.”

And there is the issue of intrusion.

“Is the average consumer willing to pay the upfront costs of a new system and then respond appropriately to price signals? Or will people view a utility’s ability to reach inside a home to turn down a thermostat as Orwellian?” Sen. Lisa Murkowski, R-Alaska, said at a recent hearing on smart grid.

The following is a guest post by Chelsea Green‘s Makenna Goodman:

I remember a time when defenseless kids with hippie moms got made fun of for using wax sandwich bags (ehem). I remember a time when it was considered uncool to be packing carrot sticks in your tote bag. When yoga was what the weird naked guys did at the hot springs in Ouray, Colorado; you know downward-facing dogs splayed out by the pool. I remember a time, in other words, when trendy things used to be not-trendy. Like BIODIESEL. The wave of the future.

You’ve seen it station wagons clanking around town with a sign on the back window that says, “This Vehicle Runs on Veggie Oil I’m Awesome.” You probably drive by and think: Damn. Those hippies are self-important, but I’m repressing the fact that I want to be just like them. What is wrong with me? But here’s the first thing you should know about biodiesel: It’s not just white people with dreads who use vegetable oil to run their cars. It’s a movement. Dude, my boss does it.

Know this:
*Biodiesel can be made from virtually any vegetable oil
*It can be used in any modern diesel engine
*It’s America’s fastest growing alternative fuel

But really, biodiesel is a tricky thing to understand, which is why many people just plain don’t. Consider it worth your while to get versed on biodiesel, from the experts. And everything you need to know, Greg Pahl will tell you. He’s the author of Biodiesel: Growing a New Energy Economy and The Citizen-Powered Energy Handbook: Community Solutions to a Global Crisis and knows the deal.

The following is an excerpt from The Citizen-Powered Energy Handbook: Community Solutions to a Global Crisis by Greg Pahl. It has been adapted for the Web.

Biodiesel 101

Biodiesel, a diverse group of diesel-like fuels, can be easily made through a simple chemical process known as transesterification from virtually any vegetable oil, including (but not limited to) soy, corn, rapeseed (canola), cottonseed, peanut, sunflower, mustard seed, and hemp. But biodiesel can also be made from recycled cooking oil (referred to as “yellow grease” in the rendering industry) or animal fats. One Vietnamese catfish processor is even using fish fat as a biofuel feedstock.30 There have even been some promising experiments with the use of algae as a biodiesel feedstock. As long as the resulting fuel meets the American Society for Testing and Materials (ASTM) biodiesel standard (D-6751), it’s considered biodiesel in the United States, regardless of the feedstock used in its manufacture (in Europe, the standard is EN 14214). And the process is so simple that biodiesel can be made by virtually anyone, although the chemicals required (usually lye and methanol) are hazardous, and need to be handled with extreme caution.

Simply stated, here is how biodiesel is made. The transesterification process is initiated by adding carefully measured amounts of alcohol (methanol) mixed with a catalyst (sodium hydroxide lye the same chemical used to unclog kitchen or bathroom drains) to the vegetable oil. The mixture is stirred or agitated (and sometimes heated) for a specific length of time. If used cooking oil is the feedstock, the process requires a bit more testing, lye, and filtration, but is otherwise essentially the same. During the mixing, the oil molecules are split or “cracked” and the methyl esters (biodiesel) rise to the top of the settling/mixing tank, while the glycerin and catalyst settle to the bottom. After about eight hours, the glycerin and catalyst are drawn off the bottom, leaving biodiesel in the tank. The whole idea of the process is to remove the thick, sticky glycerin from the vegetable oil, so the remaining biodiesel will flow easily and combust properly in a modern diesel engine without leaving damaging deposits inside the engine.

In most cases the biodiesel needs to be washed with water to remove any remaining traces of alcohol, catalyst, and glycerin. In this procedure, water is mixed with the biodiesel, allowed to settle out for several days, and then removed. The wash process can be repeated if needed, but it is time-consuming. Not everyone agrees on whether the water wash is necessary. A few smaller producers who are making biodiesel for themselves skip the process, while commercial producers usually must do it to meet industry standards. In the case of some larger, more sophisticated manufacturing facilities, the transesterification process itself is so carefully controlled and refined that the water wash is not needed. There are, of course, quite a few technical variations on this entire process for large-scale industrial operations, but the general transesterification procedure is similar.31

As the amount of biodiesel being produced grows exponentially, the quantities of glycerin by-product grows apace. Glycerin has always been a niche market that is highly sensitive to oversupply, and the recent exponential growth of this commodity as a result of biodiesel production has caused the world glycerin market to collapse. As a result, traditional glycerin manufacturing plants around the world have been closing, while new ones that use glycerin as feedstocks for epoxy resins, propylene glycol, and other products have been opening. Recently, glycerin has even been used by one California company, InnovaTek Inc., as a source for the production of hydrogen.32 Trying to develop new uses for glycerin has been keeping a lot of people awake at night.

Our perspective:

Biofuels is the wave of the future. The federal and many state governments have provides great incentives to help start this process.  Biodiesel adds the needed lubrication to low sulpher diesel, that extends the life of the engine and help it to run more efficiently.

let us know your toughts? You may leave a comment or email george@hbsadvantage.com with any questions you may have.

Vivi Gorman, GREENandSAVE.com

Governor Ed Rendell announced June 1 that the state is seeking $15 million in federal funding to expand the state’s use of biodiesel and alternative fuel vehicles by applying to the U.S. Department of Energy under the American Reinvestment and Recovery Act.

The governor explained that Pennsylvania’s Energy Independence Strategy includes an initiative mandating the production and use of renewable fuels to develop the state’s economy and reduce dependence on foreign fuels. The state initiative has set a goal to produce and use one billion gallons of domestically produced biofuels in Pennsylvania by 2017.

Under the plan, the Department of Environmental Protection will partner with the Pittsburgh Regional and the Greater Philadelphia Clean Cities programs, the National Biodiesel Board and eight other industry partners to install fueling infrastructure, retail sites, procure vehicles, promote the use of alternative fuels and educate the public. The eight industry partners included in the project are: Buckeye Partners LP, Centre Area Transportation Authority, Gulf Oil LP, Guttman Oil Co., Lower Merion School District, Lycoming County Resource Management Services, Pennsylvania Energy Co., and Sunoco Logistics Partners LP.

Governor Rendell remarked that Pennsylvania occupies one of the largest natural gas supplies in that country in the Marcellus Shale reserve. The project proposes to install 23 biofuel terminals and four retail stations throughout the state; l natural gas refueling facilities at two locations; and compressed natural gas equipment on 36 existing vehicles and purchasing 57 new natural gas vehicles for public transit agencies.

The project will allow for the displacement of 263 million gallons of petroleum-based fuel over four years, create at least 9,000 jobs, and reduce carbon dioxide emissions by 7.2 million pounds.

YURI KAGEYAMA | June 3, 2009 06:41 AM EST | AP

TOKYO — Toyota said Wednesday it will start leasing plug-in hybrid cars, that are even greener than its hit Prius, by the end of this year in the U.S., Japan and Europe.

Toyota Motor Corp., the world’s top automaker, will start leasing 200 plug-ins in Japan, 150 in the U.S. and 150 in Europe, mostly for rental, such as through special government-backed programs, it said in a release.

Toyota will for the first time use lithium-ion batteries in the plug-ins. The batteries are already used in some cars but more common in laptops and other gadgets.

Toyota hybrids now use nickel-metal hydride batteries. Using a lithium-ion battery will produce more energy, allowing the car to run more as an electric vehicle, but there have been some technological hurdles.

A plug-in recharges from a regular household socket. When the battery runs low, it will start running as a regular hybrid so drivers don’t have to worry about running out of juice on the road.

Automakers around the world are working on plug-in models. Recharging stations are expected to proliferate in the cities of the future, much like gasoline stands, for recharging.

The booming sales of the revamped Prius, which went on sale last month, have been a rare bright spot for Toyota.

Battered by the global slump and the strong yen, the maker of the Camry sedan and Lexus luxury models recorded its worst loss in its seven-decade history for the fiscal year ended March.

Toyota dealers have received 110,000 orders for the Prius in Japan. Toyota acknowledged this week an order placed this month won’t get delivered until November or later.

Toyota leads the world in cumulative hybrid sales because of the popularity of the Prius, now in its third generation. The first-generation Prius went on sale in 1997.

As reported in SNJ Business People

06/02/09

The second solicitation for financing by the State of New Jersey under the Clean Energy Manufacturing Fund began on June 1. The recently launched program was specifically designed to support companies looking to site or materially expand a Class I renewable energy or energy-efficient product manufacturing facility in New Jersey, and will enable the state to take a leadership role in the clean technology industry by promoting new green jobs and growth while addressing the goals of Governor Jon S. Corzine’s Energy Master Plan. The program is funded by the New Jersey Board of Public Utilities (BPU) and administered through the New Jersey Economic Development Authority. The solicitation period opened June 1, and is scheduled to close on July 15.

 “The Clean Energy Manufacturing Fund will contribute greatly to the cost-competitiveness of renewable energy and energy efficiency in New Jersey while also supporting the creation of green collar jobs in the Garden State,” said Caren S. Franzini, chief executive officer of the EDA.

 “Our continued partnership with the EDA will create jobs, ensure energy security and help achieve Governor Corzine’s mandate to reduce greenhouse gas emissions and combat global warming,” added BPU Board President Jeanne M. Fox.

Through the Clean Energy Manufacturing Fund, New Jersey clean technology manufacturers can receive funding under two separate components: project assessment and design, and project construction and operation. In total, a qualified manufacturer of Class I renewable energy or energy efficiency systems, products or technologies may be eligible to receive up to $3.3 million in grants and interest-free loans. Up to $300,000 is available as a grant to assist with the manufacturing site identification and procurement, design, and permits. Up to $3 million is available as a zero-interest, ten-year loan to support site improvements, equipment purchases, and facility construction and completion.

To take advantage of this program, a company must be a for-profit entity that is planning to manufacture eligible products in New Jersey and be entering or expanding within the manufacturing stage of commercial development. A minimum 50-percent cash match of total project costs from non-state grants, loans, or equity, is required for both program components. Preference will be given to those projects that demonstrate a greater percentage of the project being designed, manufactured, processed, assembled or made ready for commercial sale at the company’s project facility in New Jersey. Eligible technologies for funding include energy efficiency equipment and technology, Class I renewable energy and other technologies or equipment that can demonstrate their integral nature to the development of Class I renewable energy and energy efficiency technologies. Class I renewable energy is defined as electricity derived from solar energy, wind energy, wave or tidal action, geothermal energy, landfill gas, anaerobic digestion, fuel cells using renewable fuels, and, with written permission of the New Jersey Department of Environmental Protection (DEP), certain other forms of sustainable biomass.

To learn more about the Clean Energy Manufacturing Fund, call 866-534-7789 or visit www.njeda.com\CEMFApplication.