Green Options

Just about this time last year I reported on the very promising and innovative Mcgyan® biodiesel process. It was one of the most popular stories gas 2.0 ran that year, and rightly so: the breakthrough seemed to deliver the possibility of making biodiesel in mere seconds from start to finish, reducing costs by half the price of other biodiesel, producing no waste, using no chemical reactants, and using any animal fat or vegetable oil as a feedstock.

At the time the company in charge of the project, Ever Cat fuels, had only succeeded at making a small-scale pilot operation of 50,000 gallons per year. But, as of 2 days ago, the process has been completely commercialized.

Jatropha is a nondescript and rather ugly desert shrub, but its appearance belies a huge potential as a major source of oil for biodiesel production on land that doesn’t compete with food crops — and the whole world is taking notice.

Jatropha has the potential to produce 4 times the amount of biodiesel as soybeans and 1.5 times the amount of even a dedicated oil crop such as canola. This alone has been enough to make people sit up and take notice, but jatropha’s true beauty lies in the fact that it can be grown on literal wasteland — land that has been left for dead with little rainfall, poor soils, and a harsh climate.

Yesterday the U.S. Senate voted to renew a one year extension for renewable energy tax credits worth $18 billion dollars. Absent from the package was a tax credit aimed at helping food giant Tyson and oil giant ConocoPhillips turn a profit by converting fats leftover from Tyson’s processing of beef to the so-called “renewable diesel” that ConocoPhillips blends with regular diesel (for a look at what renewable diesel is, check out Jason Burroughs comment below).

The legislation enacts a $1 per gallon credit for biodiesel production, but the “renewable diesel” made from waste fat, or tallow, would only be eligible for a 50 cent per gallon credit. According to Tyson and ConocoPhillips, without the $1 per gallon credit for making “renewable diesel” from tallow, their proposed project is a no go.

U.S. ethanol producers are being hit by a one-two punch: Hurricane Ike-related damage is softening demand for the alternative fuel while rising corn prices are increasing operating costs.

Last week, Hurricane Ike left many US oil refineries hobbled in its wake — including the nation’s largest biodiesel refinery. As a result, oil production is down.

Demand for ethanol in the US is closely tied to oil production because of the federal ethanol-gasoline blending mandate. So as oil production has fallen, so has ethanol demand.

At the same time as Hurricane Ike was downing oil refineries, corn futures — essentially the betting on whether or not the price of corn will rise or fall in the coming months — have risen dramatically due to the volatile financial markets and a general upward trend.

Texas biodiesel producer GreenHunter Energy says that hurricane damage to its gulf coast refinery — currently the largest in the nation — will take it out of production for 6 to 8 weeks.

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.

A small group of unassuming mid-westerners has discovered what could be a complete game-changer for the global biodiesel industry. Their new system makes biodiesel in mere seconds, creates a product that costs half the price, produces no waste, and can use any animal fat or vegetable oil as a feedstock.

Even though I’m sometimes down on my country because of the pathetic state of our government, the thing that always makes my patriotism swell is the truly amazing and unexpected ingenuity that seems to spring forth from the American people.

And in this tale, American ingenuity doesn’t get much more classic. A student and his professor at a small college smack dab in the middle of the heartland that virtually nobody’s ever heard of, have figured out a way to make biodiesel quickly, cheaply, and efficiently from a very small package.

By 2012, a large portion of India’s Uttar Pradesh region will be converted into Jatropha, a non-edible oil-seed crop that can be grown on marginal land.

40% of recently set aside “wasteland” in India’s populous norther region will be put into Jatropha production in the next few years, according to sources within the country. That makes for an estimated 26,721 hectares (about 66,000 acres) of land that will be converted into biodiesel crop production.

Imagine a grass crop, grown on marginal, non-food bearing land without pesticides or much fertilizer, that, when harvested, produces an oil that needs almost no processing to be substituted for diesel fuel.

Much attention has been given to producing ethanol from non-food crops like grasses, but the ability to produce something indistinguishable to diesel from grass could be a game-changer. It would require almost no infrastructure change and could fuel all of the existing long-haul trucks on the road without modification.

Ceres, Inc. supports the prediction that we could grow more than 30% of US transportation fuel with dedicated energy crops. This is no pipe dream: planting starts next spring.

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.