France Says “Non” to Biofuel Tax Breaks
Citing higher oil and grain prices, the French Government said it will phase out tax breaks for biofuels by 2012.
Citing higher oil and grain prices, the French Government said it will phase out tax breaks for biofuels by 2012.
Editor’s Note: This post is a guest contribution by Adam Shake.
Ford Motor Co. Executive Chairman Bill Ford and Dow Chemical Co. Chairman and Chief Executive Andrew Liveris are scheduled to discuss “The National Summit,” which will take place June 15-17 2009, at Ford Field, the home of the Detroit Lions.
“The United States can no longer afford to take economic leadership for granted,” Ford said in a statement issued Monday by the economic club. “The National Summit offers a rare opportunity for leaders to come together to address the issues that impact our global competitiveness.”
DOW Chemical, who may be best known for its supply of Agent Orange to the U.S. Military during the Vietnam War, also made Chlorpyrifos, marketed as Dursban. Dursban was a home and garden insecticide (now banned for home use) and is also a nerve toxin that has been associated with reproductive and developmental toxicity. One study claims that Dow has contributed to 80% of the Chlorpyrifos burden of the United States.
The GreenHunter facility is capable of producing 100 million gallons of biodiesel per year (Mgy) using a combination of animal fats and vegetable oils. Prior to Hurricane Ike, they had been ramping up production and last Friday announced that they had achieved a 65 Mgy output. It’s unclear how the hurricane damage will affect their time frame for reaching full capacity.
Editor’s note: Part three of Alexis Madrigal’s series on California’s ethanol mandate focuses on the challenges of transporting the fuel.
Back in the 1980s, with smog choking American cities, the government decided to tinker with the gasoline hydrocarbon formula to create cleaner burning fuels. The easiest way to do that is to add a little oxygen to the gas. Adding O2 is a little like blowing on a flame: the controlled fire inside your car’s engine burns a little more efficiently and thus a little cleaner, reducing toxic air pollutants, carbon monoxide, and ozone.
Spurred by state and Federal regulations but committed to selling the most petroleum they could, oil companies found the cheapest oxygenate they could, a crude-derived chemical called MTBE. Subsequent environmental impact studies determined that MTBE was a groundwater pollutant, and in 1999, then-Governor Gray Davis ruled that all MTBE had to be removed from California’s gasoline by the end of 2002 (though the phase out was extended).
That left the state casting around for an alternative way to get extra oxygen into its gasoline blend while maintaining the smog-control benefits of the previous blend, and quick. They settled on ethanol, the only scaleable oxygenate available.
“This actually was a major shift in a lot of different things. The phase out was something extremely rapid. It required [the oil industry] to use the only other oxygenate alternative, which was ethanol,” says Rahul Iyer, a founder of the biofuels infrastructure startup Primafuel.
It seems that BP is trying to make up for lost time — the worldwide oil giant has invested $90 million in cellulosic ethanol company, Verenium. This is BP’s first foray into the world of cellulosic ethanol (ethanol derived from non-food crops), and man is it a gigantic one.
The money will be distributed to Verenium over the next 18 months, with a likelihood of further investment and cooperation beyond that point. Under the agreement, BP will have broad access to Verenium’s research, production facilities, and technology.
Although relatively late to the fray, BP thinks this investment gives them the “most advanced technology for transforming [cellulosic material] to biofuels,” as Sue Ellerbusch, president of BP Biofuels North America said.
Verenium claims to have the edge in cellulosic ethanol production through genetic engineering of the microbes required to turn the cellulosic material (switchgrass, wood chips, sugarcane bagasse, miscanthus) into ethanol.
Ceres, Inc., the self-described “energy crop company,” is engineering plants that could play a big role in the future of sustainable biofuels. In stark contrast to food crops, what Ceres is in the business of creating are “dedicated energy crops”—like switchgrass, sorghum, and miscanthus—that are ideally suited for fuel production.
While the global “food vs. fuel” debate rages on, a few companies like Ceres are quietly moving forward with next generation technology that challenges many of the current assumptions about growing fuel. In their view, it’s time to move the conversation on from corn-based controversy to second-generation, non-food based sources of ethanol.
Tomorrow, General Motors is hosting a backgrounder on cellulosic ethanol feedstocks at the Thousand Oak (CA) based laboratories of Ceres, Inc.
Coverage of non-food based ethanol tends to focus on fuel production technologies, but Ceres works one step further up the supply chain: they’re using genetic technology to engineer plants optimally suited for conversion into something you’d want to put in your gas tank.
I’ve already had the chance to speak with Richard Hamilton, President and CFO of Ceres, about the potential to produce super-strains of perennial grasses like sweet sorghum and switchgrass, and I’m looking forward to hearing more details tomorrow.
As if there isn’t enough bio-diesel controversy over the food for fuel debate now we have a little skirmish arising here in San Francisco. When we walk by any San Francisco restaurant (particularly the ones that have that delish yet oh so bad for you fried cuisine) we can smell where this fuss originated – the fryers. Yes, it’s that oh so wonderful french fry grease that companies like Blue Sky Bio-fuels and Got Grease work with to create biofuel. To us this method makes much more sense to reuse old oil and grease than to the create fuel directly from real food.
In this case the grease skirmish remains between the City of San Francisco and the private sector. Both Got Grease and Blue Sky pick up grease (usually for free) from small restaurants, but now the City jumped into the fryer and collects it as well. The fact that the City collects the oil isn’t a problem but the fact that the City has been using health inspectors to secure oil from the restaurants smells like burnt oil to us. Apparently a letter from the City exists that says something to the effect of “The City has been so busy collecting restaurant oil that we haven’t had time to write up violations.” Should we call this mess “Greasefellas”?
It’s hard to believe that one of America’s greenest cities lacks a true biodiesel station. Yes, San Francisco has an Olympic station on Third Street however is only supplies commercially licensed diesel vehicles with “B20” which even in the controversial biodiesel world isn’t that green. If the building and fire departments sign off, then Dogpatch Biofuels will open in the near future. Yes, we can wait to smell all the great restaurant cooking oil waste from SF’s top level eateries filled into the hungry car engines.
AutoblogGreen reported today that the cellulosic ethanol company Mascoma has received another $10 million for research and development from Marathon Oil. This comes after GM’s undisclosed equity share in the same company was announced last week, and puts the grand total raised in this round of financing at $100 million.
General Motors announced today it would be entering into a strategic relationship with Mascoma Corp., a second-generation biofuel company with the technology to produce cellulosic ethanol from non-food sources via a single-step biochemical conversion.
The undisclosed equity share aims to contribute to joint research and development along with technology exchange, plant siting, and rapid commercialization of cellulosic ethanol technology and infrastructure. This is GM’s second investment in a cellulosic ethanol company, after announcing partnership with Coskata back in January.
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