Jason Barton

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Archive for the ‘Bioenergy’ Category

EPA Proposes Increased Bureaucracy

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Is this proposed legislation going to improve working conditions or environmental impact at sugarcane and ethanol production facilities, or is it just more paperwork? I’ve written extensively on this site and in my doctoral dissertation about these issues, as well double fuel pumpsas related policies, but it’s not clear the intent of the proposed legislation. Whatever it is, demand for imported ethanol has taken various swings over the last few years, not due to natural factors, but due to the EPA’s decisions.

When the US EPA allowed Brazilian sugarcane ethanol to meet the “advanced biofuels” requirement in 2010, it certified, according to their analysis, that cane ethanol reduces greenhouse gas (GHG) emissions by at least 50% (61%) over traditional, petroleum gasoline. This comes after much debate regarding the actual GHG emissions from sugarcane, corn, and cellulosic ethanol.

When the EPA made their decision on this debate, it significantly increased demand for Brazilian cane ethanol as US refiners worked to meet the advanced biofuel mandate. The EPA, however, lowered the volume on this mandate due to lagging development of domestic, cellulosic ethanol that would also satisfy the advanced mandate.

Now, according to the article below, that increased demand could be dampened, and the number of producers reduced to only the largest players, as meeting the new reporting requirements increases transactions costs. Policy fluctuations like these have made it very difficult for investors in Brazil since the prices they earn for their product are not subject to natural factors of supply and demand, but due to the whims of bureaucrats in Washington.

Reuters

 

 

 

By Cezary Podkul

NEW YORK, July 12 | Fri Jul 12, 2013 10:13pm BST

 

(Reuters) – Importing cheap Brazilian ethanol into the United States could become much less profitable next year if a proposal by the Environmental Protection Agency to expand tough documentation and transportation rules to non-U.S. producers takes effect.

The proposal, made on June 14, could seriously disrupt a signature Latin American energy trade, triggering auditing, documentation and transportation requirements, including physically separating U.S. ethanol imports from each other until those requirements are met.

Read the entire article here.

 

 

Ethanol Mills in the Amazon?

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It’s true that ethanol mills have the potential to protect forests, particularly in the Amazon region where cane producers are required by law to leave 75-80% of each plot of land forested. The question is whether or not these laws will be observed and enforced.

The Brazilian Forest Code mandates that agricultural producers do not plant crops on 75% of their land, and also leave riparian corridors and other sensitive areas fallow. These laws have traditionally not been enforced, however, as they risk causing production costs to rise, making Brazilian agricultural products uncompetitive.

Yes, ethanol production in the Amazon can create jobs, protect forests, and reduce petroleum consumption, all while localizing energy production for people who would use the fuel there in the Amazon where the cane is grown and the ethanol is milled. It will take vigilance by Brazilian citizens and media to ensure these laws are followed if this expansion of cane and ethanol production is to occur.

Reuters

Brazil Bill Seeks to Open Amazon to New Ethanol Mills

Tue, Jun 04 13:01 PM EDT

* Investors say ethanol production in Amazon economically viable

* Environmentalists fear pressure on land use

By Reese Ewing

SAO PAULO, June 4 (Reuters) – Brazil plans to vote on a bill in the coming weeks to reopen large areas of the Amazon to sugar cane mills, rekindling fears that ethanol production could accelerate deforestation and create a major marketing challenge for the country’s biofuels industry.

Environmentalists are concerned Congress’ vote could overturn a ban on cane expansion in the region that went into place in 2009 and increase pressure on land use in areas that amount to nearly a third of the broader Amazon region in Brazil.

Meanwhile, the expansion into the environmentally sensitive areas could hurt ethanol producers’ plans to open new export markets, economists say.

Read the entire article here.

Study to Compare Impacts of Diesel and Biodiesel Emissionson on Human Health

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The impacts of ethanol fuel use on air quality in Brazil have been studied without conclusive results, so the results of this study comparing emissions from diesel fuel and biodiesel will be interesting. Other researchers have found that the burning of sugarcane prior to harvest has had adverse effects on human health, but the effect of gasoline combustion versus ethanol combustion remain largely undetermined, so studying the combustion in mines, a much more closed environment, should yield interesting results. Stay tuned…

U of A Wins ‘Underground’ Biodiesel Grant

Posted by – October 18th, 2012

The National Institute for Occupational Safety and Health awarded a $1.4 million grant to the University of Arizona‘s Mel and Enid Zumerman College of Public Health along with the department of mining and geological engineering. The three-year project will compare exposure and health effects of miners using diesel versus biodiesel fueled underground mining equipment. During the past few years, miners have shifted to the use of biodiesel-blend fuels in an effort to reduce exposure to particulates from engine exhaust.

Continue reading this story here.

Written by Jason

October 20th, 2012 at 8:25 am

Raizen and Iogen to Cooperate for Cellulosic Ethanol Plant in Brazil

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This has been a long time in coming, and is still a ways off, but is an important step towards renewable fuels from non-food feedstocks. Rather than use the sugar that has to date been the feedstock for ethanol production in Brazil, and is otherwise use as food, this process would separate the sugars in the bagasse, or the green leaves of the cane stalks, and ferment those for ethanol. Previously this bagasse was either burned in the field before manual harvest, or more recently harvested mechanically either to be left in the field to maintain soil structure or burned in the refinery to provide electricity.

The ethanol produced from cellulose in processes like this would be a tremendous leap forward in the production of renewable fuels.

Published 18 October 2012

Raízen Group, Iogen Energy to develop cellulosic ethanol facility in Brazil

Brazilian sugarcane ethanol producer Raízen and Canada-based cellulosic ethanol fuel manufacturer Iogen Energy will collaborate together to develop a commercial cellulosic ethanol project in Brazil.

The collaboration will be the first step towards commercialization of cellulosic ethanol biofuels in the country.

Continue reading here.

By Susanne Retka Schill | October 17, 2012

Engineering begins on Iogen-based cellulosic plant in Brazil

Ottawa-based Iogen Energy Corp. announced an initial investment by Raízen Group to develop a commercial cellulosic ethanol project in Brazil. Raízen, a joint venture between Royal Dutch Shell and Cosan SA is the world’s largest producer of sugarcane ethanol. Iogen Energy, a joint venture with Shell and Iogen Corp., operates a demonstration facility in Ottawa where it has produced over 2 million liters (560,000 gallons) of cellulosic ethanol as it refined its process since 2004.

Continue reading this article here.

Agricultural Policy Matters to Eaters and Energy Users as much as to Farmers

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Food and energy are increasingly intertwined. As energy is fundamental to food production, processing, and distribution, and because agricultural crops are used for biofuels feedstocks, the interconnections and impacts can become dizzyingly complex. Localizing both food and energy production can, in many instances, increase the efficiency, the quality, and the ecological cleanliness of these two essential production systems.

This is not to say I will give up the coffee that comes from Latin America, and it is often more efficient to eat tomatoes trucked from Mexico than to grow them in greenhouses further north, but there is much we can do to decrease energy inputs to the food system, and we can do it without making significant sacrifices.

By MICHAEL POLLAN
Published October 10, 2012

One of the more interesting things we will learn on Nov. 6 is whether or not there is a “food movement” in America worthy of the name — that is, an organized force in our politics capable of demanding change in the food system. People like me throw the term around loosely, partly because we sense the gathering of such a force, and partly (to be honest) to help wish it into being by sheer dint of repetition. Clearly there is growing sentiment in favor of reforming American agriculture and interest in questions about where our food comes from and how it was produced. And certainly we can see an alternative food economy rising around us: local and organic agriculture is growing far faster than the food market as a whole. But a market and a sentiment are not quite the same thing as a political movement — something capable of frightening politicians and propelling its concerns onto the national agenda.

Continue reading this article here.

Written by Jason

October 11th, 2012 at 5:42 am

Cooperation on Biofuels Increasing between Brazil and US

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With the US ending both the tariff on imported ethanol and the tax credit for domestic blenders, cooperation between the US and Brazil on biofuel technology is increasing, as well as efforts to trade renewable fuels on global markets. (See my post at the end of last year)

Yes, we need to be ever vigilant on the possible effects of increased biofuel production on food availability and prices as well as on land use, soil and water quality, and related issues. In my doctoral dissertation, however, I examined these issues in depth and contend that increased production can occur along with protection of ecological health.

The cooperation discussed in the article below can lead to greater efficiency of renewable fuel production, using less land and less water to produce more fuel.

Energy is fundamental to economic growth, and as countries in Latin America and Africa increase their ability to produce renewable energy domestically, they create more jobs and better the lives of their people in ways that will improve economic as well as environmental conditions for generations. These are undoubtedly positive.

It is a fascinating time to be alive.

Insight: U.S. and Brazil – At last, friends on ethanol

A gas station worker fills a car's tank with ethanol in Rio de Janeiro April 30, 2008. Brazil is the world's largest producer and exporter of ethanol. REUTERS/Sergio Moraes

By Brian Winter

BRASILIA | Fri Sep 14, 2012 11:21pm IST

(Reuters) – After years at each other’s throats, Brazil and the United States are working together to promote the use of ethanol in a collaboration that could revolutionize global markets and the makeup of the biofuel itself.

The breakthrough came in January when Washington allowed a three-decade-old subsidy for U.S. ethanol producers to expire and ended a steep tariff on foreign biofuels. The tariff, in particular, had poisoned diplomatic relations between the world’s top two ethanol-producing countries for years.

Continue reading this article here.

US Ends Tariff on Imported Ethanol

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With surprisingly little fanfare, the US has ended the $0.54 per gallon tariff on imported ethanol. This comes at the same time that Congress also allowed the $0.45 per gallon of ethanol tax credit for blenders to expire, potentially opening the door to much more US importation of Brazilian ethanol, as well as cooperation between the two countries on more advanced biofuels. Brazil was the leading producer of renewable fuel until 2005 when US production of ethanol from corn surpassed production of Brazil’s sugarcane ethanol.

The article below is clearly biased, quoting two top officials from UNICA, Brazil’s powerful sugarcane industry association, without presenting views from American officials who have been opposing these measures as they work to protect domestic energy production and agricultural markets.

That said, decreasing government intervention has always been favored by this humble author, and the elimination of these barriers to trade should make for the more efficient functioning of energy and agricultural markets.

Cooperation between the two largest producers of renewable fuels could also lead to faster development of fuels from non-food crop residues such as corn stover, sugarcane bagasse, and other cellulosic feedstocks.

Congressional Recess Means the End of Three Decades of US Tariffs on Imported Ethanol

Time for the world’s top two ethanol producers, the United States and Brazil, to lead a global effort for increased production and free, unobstructed trade for biofuels, says Brazilian Sugarcane Industry Association.

SAO PAULO, Dec. 23, 2011 /PRNewswire/ — For the first time in more than three decades of generous US government subsidies for the domestic ethanol industry, coupled with a steep tariff on imports, the United States market will be open to imported ethanol as of January 1st, 2012, without protectionist measures. The adjournment of the 112th Congress means both the US$0,54 per gallon tax on imported ethanol and a corresponding tax credit of US$0,45 per gallon for blenders, the VEETC (Volumetric Ethanol Excise Tax Credit), will expire as expected on December 31st.

Continue reading this story here.

Imports of Brazilian Ethanol Nearer as US May End Subsidies

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Just as the US Congress debates whether or not to end subsidies to corn ethanol, Royal Dutch Shell invests heavily in preparations to export Brazilian ethanol to the US.

July 10, 2011 4:37 pm

Shell to focus on exporting ethanol to US

Royal Dutch Shell is gearing up to become the biggest exporter of ethanol to the US, investing heavily in its joint venture in Brazil as global oil companies battle for control of the Latin American country’s sugarcane fields.

Under pressure to reduce the US deficit, lawmakers in Washington are preparing to scrap ethanol subsidies and tariffs – a move that would open up the country to cheaper imports while putting the spotlight on Brazil as the world’s only other leading producer of the biofuel.

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“The tariffs will be lifted; it’s just a question of when. That’s why we need to increase production of ethanol quickly,” Vasco Dias, Raízen’s chief executive said in an interview with the Financial Times.

“Our main priority now is to supply the internal market but our ambition is to become a big exporter of ethanol to the US when the time comes, and also to Europe.”

Read the entire article here.

Written by Jason

July 13th, 2011 at 10:39 pm

Algae May Be the Future of Biofuels, but it’s a Distant Future

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This is promising. Whatever we may say about Monsanto (read more here), there are some smart people working there, and their investment in technology to use algae for biofuels shows there is some real promise in those efforts. The innovation needed to make this technology energy efficient and cost effective, however, is a long way off.

Cellulosic biofuels from crops with which we have great experience, such as corn and grasses, continues to face considerable barriers. First, while we have known for millennia how to ferment 6 carbon sugars such as glucose,we lack the experience and an efficient method to ferment the diverse, 5 and 6 carbon sugars in cellulose. To complicate matters further, unlike the sugars in cane or in the carbohydrates in corn, the sugars in cellulose are mixed in with lignin, the stiff, woody parts of plants that give them their structure.

Sapphire energy, the company discussed in the article below, will not likely ferment the sugars for fuels like ethanol, but will extract the oil to make diesel fuel. This process still faces barriers as formidable as those I discuss above, plus the added disadvantage that we don’t have proven methods to grow, harvest, and process algae efficiently.

You might be thinking, ‘the pond near our backyard grows tons of algae and we don’t even want it, how hard can it be?’ When we’re trying to grow enough to be used to power cars and planes, and in a small space with limited inputs of water and other form energy, it gets trickier.

It will take time to develop the methods to do all of this. It can be done, but let’s not figure that developments such as this give us license to continue using fossil fuels with our present, reckless abandon.

Innovation, yes, efficiency always.

Monsanto Backs Algae Startup Sapphire Energy

content by earth2tech

By Katie Fehrenbacher at Earth2Tech

Tue Mar 8, 2011 11:07am EST

Agriculture and genetics giant Monsanto has made its bet on algae. On Tuesday Monsanto announced that it has made an equity investment in, and developed a partnership with, algae startup Sapphire Energy.

Founded in 2007, Sapphire Energy uses synthetic biology to make a green crude out of algae that can be turned into gas, diesel or jet fuel. Monsanto wants access to Sapphire’s genetic research technology to use it for its own agricultural development. Using Sapphire’s genetic technology, Monsanto can isolate traits in algae (like high yields and stress traits) that could be used to tweak other crops. Monsanto’s CTO Robb Fraley said in a release that algae is an “excellent discovery tool,” for agricultural genetic research.

Read the entire article here.

Written by Jason

March 20th, 2011 at 10:52 am

Obama and the New Brazil

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After a first visit to Brazil earlier in the 20th Century, a foreign diplomat boldly stated that “Brazil is the country of the future!” Self-deprecating Brazilians quickly added, “And it always will be.”

Based on my four years of living in Brazil and many return visits in the four years since, I don’t think Brazilians are saying this any longer, nor are the popular media or President Obama.

It has been fascinating to watch the changes in Brazil since my first arrival shortly before Lula’s election in 2002. I feel very fortunate to have earned the job that first brought me there, and to have stayed in close contact with the amazing colleagues and friends with whom I worked and laughed during the past decade.

Mr. Obama, Meet the New Brazil

By JULIA SWEIG and MATIAS SPEKTOR
Published: March 18, 2011

When Barack Obama lands in Brazil this weekend, he will find a country transformed. In little more than a decade, some 30 million people have been lifted out of poverty and the country has risen to seventh place in the world economy.

Change at home has revolutionized policies abroad. Brazil has woken up to the 10 states along its borders, becoming the eminent power and driver of regional integration in South America. It has set out to develop closer ties simultaneously with Israel, Syria and Iran.

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With most of the Amazon within its borders, the world’s 10th largest oil stores, and nearly a fifth of the world’s fresh water, Brazil is an environmental power, an energy power, and guarantor of global food security.

Read the entire article here.