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July 2011 WORLD GRAIN’S B U S I N E S S www.BiofuelsBusiness.com The International Magazine for the Renewable Fuels Industry Supplement to World Grain ACE conference preview Advanced biofuels center opens Focus on Bolivia Marketing maneuvers U.S. ethanol industry partners with NASCAR, pushes cellulose

Marketing maneuvers - pages.nxtbook.compages.nxtbook.com/sosland/bfb/2011_07_01/offline/bfb_2011_07_01.pdf · fuel ethanol and distilled ... The airline completed a test fl ight

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July 2011

WORLD GRAIN’S

B U S I N E S S

www.BiofuelsBusiness.com

The International Magazine for the Renewable Fuels IndustrySupplement to World Grain

ACE conference preview

Advanced biofuels center opens

Focus on Bolivia

Marketing maneuversU.S. ethanol industry partners with NASCAR, pushes cellulose

If you are looking to catch yields and profits from biofuels production, look to team up with GEA Westfalia Separator.

Our over 20 years of experience in ethanol production have led to technologies that can score maximum profits and savings through the entire processing chain. Our stable of separating equipment, including standard decanters, gas-tight decanters, high g-force self-cleaning disc clarifiers and separators, is capable of handling the full range of feedstocks, even algae and cellulose. Plus, we offer separators for both by-product and waste water processing.

To learn more about the services and equipment our team can provide, contact Keith Funsch at 201-784-4322 or email [email protected].

Fielding Profitability from Biofuels

Liquids to Value

1506

GEA Mechanical Equipment US, Inc.

GEA Westfalia Separator Division100 Fairway Court · Northvale, NJ 07647Phone: 201-767-3900 · Fax: 201-767-3901Toll-Free: 800-722-6622 · 24-Hour Technical Help: 800-509-9299www.wsus.com

For more information, see Page 22.

For more information, see Page 22.

A Tradition of Industry Education

For 30 years, The Alcohol School has been educatingfuel ethanol and distilled beverage producers in thescience of alcohol production. The weeklong program is designed for lab, plant, and managementpersonnel and is organized around lectures, laboratory demonstrations, seminars, and plant visits.

The program will cover the process of ethanol andbeverage alcohol production from milling and mashpreparation through fermentation and distillation.Enzyme usage, yeast biology, bacterial contaminationand control will also be discussed, along with otherissues currently affecting both industries.

Registration is limited, with preference given tofuel ethanol and distilled beverage producers.

Registration materials and additional informationare available online at www.ethanoltech.com

6120 W Douglas Ave | Milwaukee WI 53218 USA+1 414 393-0410 | Fax +1 414 358-8012

For More Information

MontréalInterContinental Montréal

September18–23, 2011

For more information, see Page 22.

06 Editorial

07 Calendar

08 Biofuels News

10 Biofuels Market Review: Distillers grain

12 Country Focus: Bolivia

21 Supplier News

14 Annual ACE conference

American Coalition for Ethanol event planned Aug. 22-24 in Des Moines, Iowa, U.S.

15 Marketing maneuvers

U.S. ethanol industry partners with NASCAR, pushes cellulose to improve public image.

19 Advanced biofuels center opens in Edmonton

Facility includes pilot plant, lab that will convert waste to biofuels, value-added chemicals.

FEATURES

DEPARTMENTS

19

July 2011

WORLD GRAIN’S

B U S I N E S S

www.BiofuelsBusiness.com

The International Magazine for the Renewable Fuels IndustrySupplement to World Grain

ACE conference preview

Advanced biofuels center opens

Focus on Bolivia

Marketing maneuversU.S. ethanol industry partners with NASCAR, pushes cellulose

Cover: Photo by Chuck Zimmerman, AgWired

©Copyright 2011. Reproduction of the whole or any part of the contents without written permission is prohibited.

All information is published in good faith. While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken on the basis of information published.

CONTENTSVolume 5 Number 6 July 2011

15

www.BioFuelsBusiness.com I BIOFUELS BUSINESS I July 2011 5

6 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

fter years of research, development and testing, bio-derived jet fuel achieved a major milestone with approval by the ASTM regulatory body for the blending of the fuel into conventional commercial and military jet fuel.

While it’s OK to take a moment to congratulate the fuel producers, aircraft and engine manufacturers and regulatory agencies for a job well done, the next steps toward building a market for the fuel are as critical and need just as much attention. After all, the ASTM’s July approval doesn’t mean anything if no one makes the bio-derived jet fuel, or for that matter, uses it.

ASTM specifi cally said up to 50% bioderived synthetic blending components can be added to conventional jet fuel. The components, called hydroprocessed esters and fatty acids (HEFA), can come from vegetable oil feedstocks such as algae, camelina or jatro-pha, or from animal fats.

It was exciting to see that soon after ASTM gave the thumbs up, a fl urry of companies announced plans to power commercial fl ights with renewable fuels while others said they were ready to sell bio-derived jet fuel.

KLM Royal Dutch Airlines will launch more than 200 fl ights on biokerosene between Amsterdam and Paris starting in September. The fuel will be made from used cooking oil, but the airline is open to using different raw materials as long as they meet a range of sustainability criteria.

The airline completed a test fl ight on June 29 using a 50/50 blend of conventional jet fuel and renewable jet fuel from Dynamic Fuels. Dynamic, a joint venture between Syntroleum Corp. and Tyson Foods, Inc., started fuel production in October 2010 at its facility in Geismar, Louisiana, U.S.

Thomson Airways planned to use bio-derived jet fuels in fl ights from Birmingham, England to Palma, Spain, on July 28. Weekly fl ights are expected to follow in September.

Virgin Australia is partnering with three others to develop a bio-derived jet fuel that uses mallees, a eucalypt tree that can be grown in many parts of Australia. The part-nership brings together companies with expertise in growing, harvesting and processing feedstock into aviation fuel. A demonstration unit is expected to start operations in 2012, followed by a commercial facility that could start production as early as 2014.

There’s no doubt the building of this market will be watched closely by others in the biofuels industry, especially those looking to make their own markets for cellulose-based fuels and higher biofuel blends. They’ll want to see what works and what doesn’t. No doubt, naysayers also will be keeping a close eye on how things develop.

That’s why it’s essential bio-derived jet producers, marketers and users carefully and thoughtfully create this market. They’re not only creating their own market, they’re set-ting an example for other renewable fuels to follow.

Already there are some lessons to note. For one, there was a company willing to be the fi rst to offer up fuel for sale, setting special pricing and terms. BioJet International Ltd. said it would release 1 billion gallons of renewable jet fuel to long-term contracts at a one-time introductory offer. Pricing was fi xed at $2.97 per gallon, or the buyer could index at par with petroleum jet fuel with a $3.50 cap and $2.50 fl oor.

In addition, working toward ASTM approval required all the stakeholders in the avia-tion fuels community to work together. That included fuel producers, engine manufactur-ers, airlines, government agencies and private companies.

If that same level of cooperation can continue as the bio-derived jet fuel market begins to grow, it will likely meet with success. That will be good news for everyone in the re-newable fuels industry.

BIOFUELS BUSINESS Volume 5, issue 6, a supplement of World Grain, is published monthly by Sosland Publishing Co., 4800 Main Street, Suite 100, Kansas City, MO 64112 U.S. Canada Post International Publications Mail (Canada Distribution) Sales Agreement Number 40612608. Send returns (Canada) to Bleuchip International, P.O. Box 25542, London, ON, N6C 6B2. Printed in the USA.POSTMASTER: Send address changes to WORLD GRAIN, PO Box 324, Congers, NY 10920-0324. © Sosland Publishing Co. All rights reserved. Reproduction of the whole or any part of the contents without written permission is prohibited. WORLD GRAIN assumes no responsibility for the validity of claims in items reported. Sosland Publishing Co. is a division of Sosland Companies. Inc.

Editorial and advertising inquiries should be directed to our world headquarters at 4800 Main St., Suite 100, Kansas City, Missouri 64112 U.S. Tel: 1-816-756-1000, Fax: 1-816-756-0494 or E-mail [email protected]. Requests for reprints of articles should be sent to [email protected] or call 1-816-756-1000.

Publisher Nola Hector-Nash

Director of Publishing Mark Cornwell

Director of Advertising Sales Dan Flavin

EDITORIAL STAFF

Editor,BiofuelsBusiness.com Editor Susan Reidy

Editorial Director Arvin Donley

Managing Editor Meyer Sosland

Designer Ryan Alcantara

PUBLISHING STAFF

Chairman Charles Sosland

Vice-Chairman L. Joshua Sosland

President and Publishing Director Mark Sabo

Vice-President and Chief Financial Offi cer Melanie Hepperly

Audience Development Director Don Keating

Director of On-line Advertising and Promotions Carrie FlueggeDirector of E-Business Jon Hall

Promotions Manager Jen Morris

Advertising Manager Nora Wages

Advertising Materials Coordinator Debbie Maniez

Digital Systems Analyst Marj Potts

Circulation Manager Judith Arnone

A

FROMTHEEDITOR

Building a biojet fuel market

Susan Reidy, editor

www.BFBusiness.com I BIOFUELS BUSINESS I July 2011 7

AUGUST 2011Aug. 16-19

BIOTech Fair — International Fair on Bioenergy and Biofuels

Location: FIEP Events Center, Curitiba, BrazilContact: Porthus EventosTel: 55.54.3226.4113E-mail: [email protected]: http://www.eventobioenergia.com.br/congresso/en/index.php

Aug. 22-24Ethanol Conference

Location: Des Moines, Iowa, U.S.Contact: American Coalition for EthanolTel: 1.605.334.3381 Fax: 1.605.334.3389Internet: http://www.ethanol.org

SEPTEMBER 2011Sept. 14-16

International Biorefi ning Conference & Trade Show

Location: Hilton Americas – HoustonHouston, Texas, U.S.Contact: BBI InternationalTel: 1.701.746.8385 Fax: 1.701.746.5367E-mail: [email protected]: http://www.biorefi ningconference.com

Sept. 18-23The Alcohol School 2011

Location: Hotel InterContinental, Montreal, Quebec, CanadaContact: The Ethanol Technology InstituteTel: 1.414.393.0410 Fax: 1.414.358.8012E-mail: [email protected]: http://www.ethanoltech.com

OCTOBER 2011Oct. 11-13

Northeast Biomass Conference and ExpoLocation: Westin Place Hotel, Pittsburgh, Pennsylvania, U.S. Contact: BBI InternationalTel: 1.701.746.8385 Fax: 1.701.746.5367E-mail: [email protected]: http://ne.biomassconference.com

Oct. 24-27Algae Biomass Summit

Location: Hyatt Regency, Minneapolis, Minnesota, U.S. Contact: Algal Biomass OrganizationTel: 1.763.458.0068 Fax: 1.507.765.4550E-mail: [email protected]: http://www.algalbiomass.org/events/

NOVEMBER 2011Nov. 1-3

Southeast Biomass Conference & Trade Show

Location: Hyatt Regency Atlanta, Atlanta, Georgia, U.S. Contact: BBI InternationalTel: 1.701.746.8385 Fax: 1.701.746.5367E-mail: [email protected]: http://se.biomassconference.com

Nov. 7-10World Ethanol & Biofuels

Location: W Hotel, Barcelona, SpainContact: F.O. Licht Tel: 44.20.3377.3658E-mail: [email protected]: http://web.agraevents.com

Nov. 28-30Canadian Renewable Fuels Summit

Location: Calgary, Alberta, CanadaContact: Deborah Elson, Canadian Renewable Fuels Association Tel: 1.613.594.5528 E-mail: [email protected]: http://www.greenfuels.org

CALENDAROFEVENTS

Algae Biomass Summit planned Oct. 24-27

The 5th Annual Algae Biomass Summit is planned Oct. 24-27 at the Hyatt Regency, Minneapolis, Minnesota, U.S. It will bring together industry professionals from all sectors of algae utiliza-tion including fi nancing, algal ecology, genetic systems, carbon partitioning, engineering and analysis, biofuels, animal feeds, fer-tilizers, bioplastics, supplements and foods.

The event is organized by the Algae Biomass Organization and

co-produced by BBI International. Future and existing producers of algae products will have an opportunity to network with other industry suppliers and technology providers. The event is expect-ed to draw 900 attendees.

Education tracks will focus on biology, engineering, analysis, commercial activities, policy and fi nancing. More information is available at www.algaebiomasssummit.org.

AUGUST 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

OCTOBER 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

NOVEMBER 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

SEPTEMBER 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

We want your feedback. Send comments and inquiries to [email protected]. For reprints of BFB articles, e-mail [email protected]

8 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

BIOFUELSBUSINESSNEWS

Canada starts biodiesel requirement

DuPont Danisco to purchase land for commercial biorefinery

SASKATOON, SASKATCHEWAN, CANADA — Canada’s Environment Minister Peter Kent announced on June 29 that the government was moving ahead with the 2% renewable content requirement in diesel fuel and heating oil, effective July 1.

“Our government will continue to ensure that protecting our environment, while balancing economic growth and prosperity remains our priority,” said Kent. “The steps we are taking on renewable fuels, combined with those of the provinces, will ensure a volume of renewable fuel that will reduce annual greenhouse gas emissions by about four megatonnes a year — the equivalent of removing one million vehicles from the road.”

“This requirement will further strengthen the market for renewable fuels, which is good news for our farmers and the environment,” said the Honorable Gerry Ritz, minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board. “Increased demand for feedstocks like canola

will ensure an even stronger bottom line for farmers and a stronger agricultural sector.”

The regulatory amendment to the Renewable Fuels Regulations will be published in the Canada Gazette, Part II, in the coming weeks. The government said it has carefully considered all the comments received on the proposal and is balancing possible competitiveness impacts on eastern refi ners with the need to minimize delays to support the Canadian biodiesel industry in moving forward.

A permanent exemption is being provided for renewable content in diesel fuel and heating distillate oil sold in Newfoundland and Labrador to address the logistical challenges of blending biodiesel in this region. Temporary exemptions for renewable content in diesel fuel and heating distillate oil sold in Quebec and all Atlantic Provinces are being provided until Dec. 31, 2012. This 18-month period will allow eastern refi ners time to install biodiesel blending infrastructure.

ITASCA, ILLINOIS, U.S. — DDCE, a wholly-owned sub-sidiary of DuPont Danisco, announced on June 27 that it has entered into an agreement to purchase a parcel of land in Nevada, Iowa, U.S., adjacent to Lincolnway Energy LLC’s conventional ethanol plant.

DDCE said this is the company’s next step toward building one of the world’s fi rst commercial-scale biorefi neries to produce fuel-grade ethanol from cellulose, in this case stover — dried cobs, stalks and leaves left after grain harvesting. DDCE is successfully producing cellulosic ethanol at its pre-commercial facility in Vonore, Tennessee, U.S., and is scaling up the process to globally license its end-to-end production system.

“We’re producing cellulosic ethanol sustainably and

economically today, and the market is ready and interested to deploy large-scale biorefi neries,” said Joe Skurla, chief executive offi cer of DDCE. “We are purchasing the site next to Lincolnway, because it will meet the business needs for our project, and provides potential economic and environmental synergies for both facilities.”

The DDCE process is designed to make fuel from a variety of cellulosic biomass. This includes wheat and corn stover, and energy crops, including switchgrass.

DDCE also is launching its 2011 Stover Collection Program to enable a cost-effective supply of stover for the biorefi nery project. The company is working closely with local grain producers to obtain commitments and collect thousands of tons of stover from Iowa fi elds this fall.

KLM launches biofuels commercial flights

AMSTELVEEN, NETHERLANDS — In September, KLM Royal Dutch Airlines will launch more than 200 fl ights that will be operated on biokerosene between Amsterdam and Par-is, KLM said on June 22.

“KLM has once again shown it is stimulating the development of biokerosene,” said Managing Director Camiel Eurlings. “In November 2009, we demonstrated that it was technically possible to fl y on biokerosene. Now, a year and a half after our fi rst demonstration fl ight on camelina, a new phase has been entered around the world, that of certifi cation. Authorization will soon be granted to operate commercial fl ights on biofuel. I am especially proud to announce that KLM will take this substantial step in September.”

The fl ights will be operated on biofuel made from used cooking oil. KLM said it is open to using different raw materials for the end product as long as they meet a range of sustainability criteria, including substantial reductions in CO2 emissions and minimum negative impact on biodiversity and food supply. All biofuels used by KLM also have to meet precisely the same technical specifi cations as traditional kerosene and must not require any adjustments to aircraft engines or infrastructure.

The fuel is produced by Dynamic Fuels and supplied by SkyNRG, the consortium launched by KLM and North Sea Group and Spring Associates in 2009. SkyNRG is actively developing a sustainable production chain for aviation biofuels.

www.BioFuelsBusiness.com I BIOFUELS BUSINESS I July 2011 9

U.S. EPA finalizes E15 pump labeling requirements

WASHINGTON, D.C., U.S. — The U.S. Environmental Protec-tion Agency (EPA) on June 28 is-sued fuel pump labeling and other requirements for gasoline blends containing more than 10% and up to 15% ethanol (E15). The EPA said these requirements will help ensure that E15 is properly labeled and used once it enters the market.

The new orange and black label must appear on fuel pumps that dispense E15. This label will help inform consumers about which vehicles can use E15. This label will also warn consumers against using E15 in vehicles older than model year 2001, motorcycles, watercraft and gasoline-powered equipment such as lawnmowers and chainsaws.

“EPA’s fi nal label is more informative than their initial label which seemed infl ammatory,” said Brian Jennings, executive vice-president of the American Coalition for Ethanol (ACE). “We remain concerned EPA feels it must say E15 may damage some motor vehicles without the evidence to prove that, however. ACE will continue working aggressively to make E15 workable.”

Over the past year, EPA issued two partial waivers under the Clean Air Act that allow E15 to be sold for use in model year 2001 and newer cars and light trucks. EPA based its waiver decisions on testing and analysis showing that these vehicles could continue to meet emission standards if operated on E15. However, EPA does not mandate the use of E15, nor has the agency registered the fuel, which is required before E15 can be legally sold for use in conventional vehicles.

The E15 pump label requirements, developed in coordination with the Federal Trade Commission (FTC), adopt elements of FTC’s existing labels for alternative fuels to promote consistent labeling. The rule also includes: a prohibition against misfueling with E15; a requirement to track E15 and other fuels as they move through the fuel supply chain so that E15 can be properly blended and labeled; and a quarterly survey to help ensure that gas pumps dispensing E15 are properly labeled. In addition, it modifi es the Reformulated Gasoline (RFG) Program to allow fuel producers to certify batches of E15 as complying with RFG standards.

This action will help to further reduce the risks of potential misfueling that could result in damage to the vehicle or equipment and in associated emission increases that pose threats to human health and the environment.

“This is an improvement over the proposed label, and we appreciate the fact that some of the changes recommended by our industry were adopted,” Ron Lamberty, vice-president of market development for ACE. “It is unfortunate that the ‘may cause damage’ language was used in the absence of any proof that it might. We’ve been concerned that the strategy of E15’s opponents to provide anecdotal ‘spook stories’ instead of science might be successful, and we will need to overcome this to make E15 workable.”

BIOFUELSBUSINESSNEWS

CommunityActive Participation in the Communities Where We Live and Work.

PartnershipConnecting Your Supply to the Domestic and Global Marketplace.

CommitmentSupported by the Reliability and Financial Security of Louis Dreyfus Commodities.

Creating Opportunity Since 1851.

LDCommodities.com

10 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Bush

els

(mill

ions

)

Production Domestic Usage Exports

06-07

Historic Prelim. Proj. Projected 2011-12 Projected 2012-13

07-08 08-09 10-11 Low Med. High Low Med. High09-10

Dried distillers grains production and usage

Top export destinations in April included Mexico at 138,206 tonnes, China at 63,767 tonnes, Canada at 57,421 tonnes and Vietnam at 49,566 tonnes.

China’s imports have dropped signifi cantly since the be-ginning of the year. In January, the nation imported 129,478 tonnes and 110,976 tonnes in February. The Chinese Ministry of Commerce launched an investigation at the end of Decem-ber 2010 into how much damage alleged dumping of DDGS caused China’s own industry from Jan. 1, 2007 to June 30, 2010. The claim was fi led by four Chinese ethanol producers.

The investigation process runs for a year, but the Chinese

After record distillers grains with solubles (DDGS) exports in the 2009-10 market year, exports slowed due to high prices in the fi rst part of the 2010-11 market year.

Still, new export markets are opening for DDGS, while ex-isting markets are expanding their use of the corn ethanol co-product, which is produced primarily in the U.S. Total exports in the 2009-10 market year reached nearly 8.5 million tonnes. From January to April of 2011, exports have totaled 2.6 mil-lion tonnes.

In the 2010-11 market year, distillers grains production is expected to reach 39 million tonnes, an increase from the 35 million tonnes produced in 2009-10. Through the ups and downs of exports, domestic demand has remained steady.

Market volatility has kept exports slow, said the U.S. Grains Council (USGC), as corn prices keep fl uctuating. Spikes in corn prices chased away potential buyers, USGC said.

“It is challenging for trade to settle on a set negotiation when prices move so quickly and so much,” the group said in a May market report.

In June, the USGC said bids were coming in well below offers and sellers were holding fi rm. The psychological bar-rier of $300 per tonne made many buyers hesitant, it said, hoping for the traditional drop in DDGS prices during the summer months.

By the beginning of July, interest and volumes were picking up in exports, but sales were still spotty. More business is on the horizon, the USGC said, mainly because of corn tightness and lower corn trading prices.

EXPORT GROWTHIn April, total exports of DDGS reached 585,117 tonnes, a

drop from 686,098 tonnes in March and the 739,074 tonnes exported last April, according to the U.S. Department of Agri-culture’s Foreign Agriculture Service.

Distillers grains

by Susan Reidy

BIOFUELSMARKETREVIEW

0

500

1,000

1,500

2,000

2,500

Japan

Indonesia

E.U.-27

Thailand

South Korea

Vietnam

Turkey

Canada

Mexico

China (Mainland)

2009-10 U.S. exports of brewers' and distillers' dregs and waste by selected destinations

(1,000 tonnes)

Source: U.S. Department of Commerce, Bureau of the Census, Foreign Trade Statistics

Price increases temporarily dampen exports, but markets continue to grow

Source: Agricultural Marketing Resource Center

www.BioFuelsBusiness.com I BIOFUELS BUSINESS I July 2011 11

trials and workshops to accelerate the adoption and use of DDGS grains.

The USGC is continuing its efforts in Japan to expand and recover the market

following the March hurricane and tsu-nami. Sales in May were 34,668 tonnes, up from 26,875 in April. Total volume for the fi rst fi ve months of the year is 133,358 tonnes.

One of the ports damaged by the tsu-nami in the Tohoku area has been re-stored, USGC said, and bought 5,245 tonnes of distillers in May. The Sendai/Shiogama port was not yet accepting any grain in May.

Mexico continues to grow its DDGS imports, which have gone from 360,000 tonnes in 2006 to more than 1.6 million tonnes in 2010

For more information, see Page 22.

government has the ability to extend it for six months. The USGC helped al-most 70 companies register as interested parties in the investigation.

The USGC said suppliers want to slow trade to China until further infor-mation is available on the anti-dumping case or there is a formal announcement from Beijing.

The DDGS export market has seen some bright spots, the USGC said, in-cluding Peru, which accepted a second shipment in July after nearly four years of no imports. Peru’s total imports have reached 11,000 tonnes in the last six months. The nation had not imported any DDGS since 2007 due to a misclassifi ca-tion by Peruvian import authorities.

The issue was resolved through a joint effort by the USGC and the U.S. agricultural attaché, the USGC said. USGC is talking with Gloria, the largest dairy processor in Peru, about feeding

The council organized DDGS work-shops at the end of June, focusing on the use in dairy and layers sectors, as well as the supply and demand out-look. Additional seminars on the use of distillers in the dairy sector are planned in September.

Mexico continues to grow its DDGS imports, which have gone from 360,000 tonnes in 2006 to more than 1.6 million tonnes in 2010. The USGC has encour-aged imports by developing relation-ships with local end users and counter-acting misunderstandings of DDGS.

Through April, Mexico has imported 644,000 tonnes of DDGS, the USGC said. The Jalisco feed mill industry has become more confi dent in the product and has more than quadrupled DDGS inclusion rates in the region.

BIOFUELSMARKETREVIEW

We want your feedback. Send comments and inquiries to [email protected]. For reprints of

BFB articles, e-mail [email protected]

12 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

COUNTRYFOCUS

Focus on BoliviaResources available to create biofuels industry, but government focused on hydrocarbonsby Susan Reidy

Capital: La PazDemography: 10,118,683 (July 2011 est.), 1.694% (2011).Languages: Spanish (offi cial) 60.7%, Quechua (offi cial) 21.2%, Aymara (offi cial) 14.6%, foreign languages 2.4%, and other 1.2%.Religions: Roman Catholic 95%, Protestant (Evangelical Methodist) 5%.Geography: Central South America, southwest of BrazilGovernment: Democratic constitutional republic. Chief of state and head of government: President Juan Evo Morales Ayma (since Jan. 22, 2006). Offi cial agricultural agencies: Ministry of Agriculture.Economy: Bolivia is one of the poorest and least developed countries in Latin America. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans (subsequently abandoned) to export Bolivia’s newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed signifi cantly higher royalties and required foreign fi rms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. After higher prices for mining and hydrocarbons exports produced a fi scal surplus in 2008, the global recession in 2009 slowed growth. Nevertheless, Bolivia recorded the highest growth rate in South America that year. During 2010, an increase in world commodity prices resulted in the biggest trade surplus in history. However, a lack of foreign investment in the key sectors of mining and hydrocarbons and higher food prices pose challenges for the Bolivian economy.GDP per capita: $4,800 (2010 est.), 4.2% growth rate (2010), 7.2% infl ation (2010 est.), 6.5% unemployment (2010).Currency: Bolivianos (BOB); 1 U.S. dollar = 6.96 BOB.Exports: $6.956 billion (2010); natural gas, soybeans and soy products, crude petroleum, zinc ore and tin.Imports: $5.366 billion (2010); petroleum products, plastics, paper, aircraft and aircraft parts, prepared foods, automobiles, insecticides and soybeans.Major crops/agricultural products: Soybeans, coffee, coca, cotton, corn, sugarcane, rice, potatoes and timber.Transportation: 13,602 kilometers (km) total roadways; 3,652 km total railways. Ports include Puerto Aguirre (inland port on the Paraguay/Parana waterway at the Bolivia/Brazil border); Bolivia has free port privileges in maritime ports in Argentina, Brazil, Chile, and Paraguay.Internet: Country code, *.bo; 125,462 hosts (2010); 1.103 users (2009).

Source: CIA World Factbook

Key Facts

Brazil

ParaguayChile

Argentina

Peru

Bolivia

Although it has the available agriculture resources to create a biofu-els industry, Bolivia’s government is more focused on utilization of the nation’s ample hydrocarbon supplies.

Creation of a biofuels industry also faces regulatory, infrastructure and fi nancing hurdles. The private sector is leading the push for the industry, but the government has not shown a serious commitment.

Much of that is due to the abundance of hydrocarbon resources avail-able domestically. Bolivia is behind only Argentina and Venezuela among mainland South American countries in natural gas production. Volumes have increased signifi cantly since 1999, when the nation started exports to Brazil. Oil production, which declined from 2007 to 2009, rebounded in 2010.

HYDROCARBON ECONOMYDespite being endowed with natural resources, including hydrocar-

bons and agricultural products, Bolivia is one of the poorest countries in South America. Economic development has been limited by high pro-duction costs and lack of investment. Poor infrastructure and the nation’s landlocked location are obstacles to growth.

Hydrocarbons, mostly natural gas, account for 10% of the country’s gross domestic product (GDP), 30% of government revenues and 40% of export earnings. The state-owned oil company and private companies said they invested $800 million in the hydrocarbon sector in 2010, an increase of 30% from 2009. Petroleum accounts for half of the nation’s energy consumption with most of the rest attributable to natural gas.

President Evo Morales has nationalized the hydrocarbon sector and expropriated large international companies. Foreign direct investment infl ows have dropped along with long-term investment across several industrial sectors as increased state control of the economy continues to be a goal of Morales.

Agriculture accounts for 10.44% of Bolivia’s gross domestic product, with about 2% of the land area devoted to arable farming and permanent crops.

Agriculture’s contribution to the economy increased in the 1980s with the collapse of the tin industry. A recession in the 1980s and poor weath-er conditions hurt output. Most production was focused on the domestic market and self-suffi ciency in food.

Development in the sector has been hurt by low productivity, poor dis-

www.BioFuelsBusiness.com I BIOFUELS BUSINESS I July 2011 13 For more information, see Page 22. For more information, see Page 22.

tribution of people in relation to produc-tive land and a lack of transportation.

Bolivia has some of the worst farming technology in the region and a poor net-work of research and extension groups. Land cultivated by modern farming techniques is increasing in the Santa Cruz area.

The top commercial crops in Bolivia include soybeans, sugar, cotton and cof-fee. Soybeans are the main crop in the Oriente around Santa Cruz, along with sugarcane and rice. Soybean production increased from about 80,000 tonnes in the mid-1980s to more than 1 million tonnes starting in 2000.

BIOFUELS POSSIBILITIESIn 2005, Bolivia created a basic law

calling for the use of 10% to 25% eth-anol blends by 2010 and the creation of incentives and projects for the de-velopment of a domestic industry to

meet those mandated levels. Such a mandated level would require more than 90 million liters of ethanol per year. Investments of up to $70 million and an additional 50,000 hectares of sugarcane would be needed, creating 60,000 jobs.

But no concrete plan has been estab-lished to reach these goals, so the biofu-els industry has not developed.

Bolivia has strong sugarcane produc-tion, which could be used to make etha-nol. The nation produces about 4.8 mil-lion tonnes of sugarcane per year, with about 105,000 hectares in cultivation. Almost all of the sugarcane goes into refi ned sugar production, which exceeds domestic demand. Some of the excess, which is currently exported, could be used for ethanol production. This could protect the nation from its exposure to volatile global sugar prices.

The nation’s largest distilleries, Un-

agro S.A. and Guabira Distillery, say that major government investments are needed to implement a biofuels law in order to make production feasible.

Earlier this year, several international fi rms offered bids to design, build and operate a sugar mill and ethanol plant for Bolivian state sugar refi ner Azucarbol. The minimum production capacity was set 22,000 liters per day and 2,000 tonnes per day for the mill. The government cre-ated the refi ner in 2009 to increase its role in the production and commercialization of sugar and its derivatives.

In terms of biodiesel, the potential production capacity is even greater. Bo-livia has signifi cant soybean production at more than 1.7 million tonnes. Incen-tives would be needed to encourage soy producers to diversify.

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COUNTRYFOCUS

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of our international facilities, Intertek offers the largest network of locations servicing the Agricultural, Petroleum and Alternative Fuel markets globally. Intertek offers comprehensive cargo inspection and laboratory quality verification throughout the alternative fuels supply chain. Alternative fuel oil feedstock’s and final products, like biodiesel and ethanol are analyzed and quality verified utilizing standardized industry applications that support the regional specifications required for international trade. By partnering with Intertek, our clients have access to a global network of advanced and routine testing laboratories for trouble-shooting, research and development, quality control, inspection and more. Trust the Quality of your Product with Intertek. Contact Intertek’s Customer Service Department for service inquiries, pricing and service locations by phone or direct email inquiry.

T H E B I O P R O C E S S C O M PA N YSince establishing a presence in the U.S. nearly 30 years ago, Vogelbusch USA has become the premier supplier of process engineering packages for the fuel ethanol industry. Vogelbusch-designed facilities in North America produce over one billion gallons of alcohol annually.

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14 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

a profi t center and fl ex fuel vehicles. Breakout sessions will cover: • issues facing ethanol boards of directors; • making blender pumps a reality; • managing margins; • Environmental Protection Agency challenges and

opportunities; • leadership training for ethanol plant board members; and• current international trade issues facing the U.S. ethanol

industry. ACE said attendees will include ethanol producers, service

providers, equipment manufacturers, lenders, fi nance ana-lysts, consultants, educators, government offi cials, farmers, investors and others.

Registration is available online at www.ethanol.org. The host hotel is the Des Moines Marriott Downtown with special rates available for conference attendees.

thanol industry representatives will gather Aug. 22-24 in Des Moines, Iowa, U.S. for the American Coalition for Ethanol’s (ACE) 24th Annual Ethanol Conference.

This year the event will include general session discussions and breakout sessions, but no trade show. ACE announced on April 25 that it was joining the International Fuel Ethanol Work-shop & Expo, which was in June, as a supporting organization.

The organization said in order to better serve its members, it was partnering with BBI International to allow suppliers and plant operators to concentrate on one trade show. The deci-sion, ACE said, would give it an opportunity to focus on de-veloping a valuable conference event.

“ACE is proud to partner with BBI and pleased to support one industry exposition at the FEW,” said Brian Jennings, ACE executive vice-president. “Both organizations have a longstanding history of offering fi rst-class events to the etha-nol industry, and we believe this partnership will continue to strengthen the industry as a whole.”

ROOTED IN AMERICAThis year’s ACE event is focused on “Rooted in America,”

and will include updates from ACE, political speakers, up-dates from U.S. automakers, as well as discussions on export-ing ethanol, E15 implementation, cellulosic ethanol, DDGS as

American Coalition for Ethanol event planned Aug. 22-24 in Des Moines, Iowa, U.S.

Eby Susan Reidy

F E AT U R E

ACEAnnual

conference

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www.BioFuelsBusiness.com I BIOFUELS BUSINESS I July 2011 15

entities in the partnership, fi rst announced its agreement with NASCAR in December 2010. It includes support of drivers, teams and tracks with marketing, promotional activities, ad-vertising and a season-long weekly contingency award. NAS-CAR is using Sunoco Green E15, a 15% ethanol blend fuel, in its major national series.

NASCAR was the right choice for a partnership because it allows the industry to reach new audiences on an incred-ible platform, said Greg Breukelman, senior vice-president of communications for POET, a key partner of American Etha-nol. It’s the ideal opportunity to validate and educate the pub-lic about E15, he said.

The American Ethanol partnership is multi-faceted, said Norris Scott, vice-president of partnership marketing and business solutions, NASCAR. Every race begins with a green American Ethanol fl ag, every car has a green circle that says American Ethanol around the fuel door, and every week American Ethanol is giving an award to a driver, he said. Farmers are being showcased in television spots and there’s additional exposure in broadcasts and the in-car cameras.

“Fans are seeing seamless racing with an E15 blend. The

s the U.S. ethanol industry struggles with an uncertain political climate, a down economy and bankruptcies/mergers, it’s looking to improve the renewable fuel’s

image domestically and abroad. A major part of the industry’s marketing focus is a six-year ex-

pansive partnership with NASCAR that includes Growth Energy, the National Corn Growers Association and more than 100 other entities. But there’s also an increasing push for commercialization of cellulose ethanol, which leaders say will broaden the industry’s political base and draw in environmental supporters.

“When this industry continues to grow and evolve, we’re go-ing to have to have more vehicles capable of utilizing higher ethanol blends, we’re going to have to have infrastructure ca-pable of moving those higher level blends to the market, and for the sake of the continued growth of this industry, we’re going to have to have cellulose ethanol commercialized. That’s just the bottom line,” said Bob Dinneen, president and chief executive offi cer (CEO) of the Renewable Fuels Association (RFA) dur-ing the International Fuel Ethanol Workshop and Expo (FEW) this June in Indianapolis, Indiana, U.S. “Everybody needs to be a part of this fi ght; I need you to make the magic again.”

NASCAR AND E15American Ethanol, the umbrella name used to represent the

U.S. ethanol industry partners with NASCAR, pushes cellulose to improve public image

Aby Susan Reidy

F E AT U R E

Marketing

(Above) American Ethanol has entered a six-year, multifaceted agreement with NASCAR. Photo by Chuck Zimmerman, AgWired.

16 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

ket. The U.S. Environmental Protection Agency (EPA) has approved the use of up to 15% ethanol in cars model year 2001 and newer. In June, it released the label that will be used on pumps dis-pensing E15.

Dinneen said the label wasn’t as bad as it could have been, and the EPA lis-tened to the suggestion of replacing the word “Warning” with “Attention.” The challenge now is making sure E15 is a commercially viable fuel, Dinneen said, which requires health effect test-

horsepower with only a small decrease in mileage.

“There’s an opportunity to take this platform, build upon it and carry it forward,” said Eric Nyquist, vice-president of strategic development, NASCAR. “You have true believers in NASCAR right now. As time goes on, more members of the ag business com-munity and the ethanol community will support this partnership.”

Educating the public about E15 will be critical to bringing the blend to mar-

brand loyalty with our customers is very strong,” Scott said. “The American eth-anol industry is getting tens of millions of dollars exposure. It’s one of the most unique partnerships we have.”

It was a partnership years in the mak-ing that fi rst required investigating whether E15 would provide the perfor-mance necessary for NASCAR races, said Brian France, NASCAR chairman and chief executive offi cer.

France said the fuel hasn’t caused any problems and provides increased

FEATURE: MARKETING MANEUVERS

Carlton Cook prepares for more visitors to the Intertek booth.

Maas Companies’ Tyler Maas, left, and Stacey Sargent, right, are ready to talk with booth visitors about ethanol plant auctions.

Laidig System’s Dave Carpenter, right, meets with Steve Key, PESCO.

Harry Abraham, left, and David Grutzmacher, right, are ready to talk about what ProQuip offers the ethanol industry.

www.BioFuelsBusiness.com I BIOFUELS BUSINESS I July 2011 17

ing, fuel registration, state regulatory issues, fuel volatility and determining E15’s octane.

“The bottom line is we’re going to have to continue to work to take advan-tage of the opportunity that EPA has giv-en,” Dinneen said. “We believe strongly that E15 will be sold commercially yet this year, and we look forward to work-ing with all of you to make that a reality. If the industry is going to grow, we need to open up new markets, and E15 will be one of them.”

PUSHING CELLULOSEAnother new market is cellulose

ethanol. It’s time to embrace it and use it to broaden the industry’s politi-cal base, said Bruce Dale, professor of chemical engineering and materials science at Michigan State University, who received the Award of Excellence during FEW.

“If you do so energetically and sin-cerely, you’ll fi nd that the environmen-tal movement, which has largely been your adversary, will start to become your

friend. Many of them believe that if we do cellulose biofuels right, it will lead to very large environmental improve-ments,” Dale said. “You’ll have the le-verage of a much larger resource base where you can start talking about replac-ing 50%, 60% or even 100% of oil.”

Dale said the wealth of a society is strongly connected to its use of energy, noting that as one of the world’s origi-nal oil countries, the U.S. was propelled into great positions of wealth and infl u-ence. But now we’re entering the de-

FEATURE: MARKETING MANEUVERS

KATZEN International offi cials from left to right: Bob Eickelberger, Phil Madsen, Peter Sandfort, Tara Vigil, Charles Tereck and David Lococo.

Midwest Towers’ Brad Meadows, right, talks to a client.

Phibro Ethanol Performance Group offi cials take time for a booth photo. From left to right: Scott Gemmell, Kent Holzer, Steve O’Shea, Mike Toomey, Henry Huertes and Matt Markert.

Union Iron’s Jonathan Simmons meets with a booth visitor.

18 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

clining age of oil, and because of that, the country has not experienced much economic growth.

“Unless we solve that problem, we can look forward to less prosperity for our country and other countries,” he said. “How do we solve that problem? We solve it by developing renewable, sustainable fuels.”

The most logical place to begin is on the back of the existing ethanol indus-try, which already has the infrastructure in place, Dale said. It will require some new thinking and embracing some new

ideas that have been a little foreign to the industry in the past.

“The U.S. led the world into the oil age, and now we have the chance to lead the world into the age of renewable fu-els,” Dale said.

That sentiment was echoed by a group of cellulose industry leaders who par-ticipated in a panel discussion during FEW. They updated attendees on their companies’ respective efforts in com-mercialization and provided some in-sight on the industry overall.

Rapid commercialization is impor-

tant, said John McCarthy, president and CEO of Qteros, which is why it makes sense to leverage what’s already in the ground. Right now, there’s no funding available for greenfi eld plants.

Wes Bolsen, chief marketing offi cer and vice-president of government affairs for Coskata, said it’s important that cellu-lose biofuels be feedstock fl exible. That way the industry isn’t just focused in the Midwest, but throughout the U.S.

Three U.S. senators announced on July 7 that they have reached an agreement to repeal the Volumetric Ethanol Excise Tax Credit (VEETC) and ethanol import tariff by the end of July.

U.S. Sen. Dianne Feinstein announced the agreement with Sens. Amy Klobuchar and John Thune. The senators said the agreement will reduce the federal defi cit by $1.33 billion, while investing $668 million in new technologies to reduce U.S. dependence on oil.

Along with the repeals, the agreement extends the cellulosic biofuel production tax credit for three years, extends the alterna-tive fueling infrastructure tax credit for three years and extends the small producer tax credit for one year at a reduced rate.

While the agreement isn’t the perfect compromise, said Re-newable Fuels Association President and Chief Executive Offi cer (CEO) Bob Dinneen, it demonstrates the willingness of Ameri-can ethanol producers and advocates to do their part to address budget concerns.

“Walking away from investments made in America’s ethanol industry cold turkey would jeopardize the future of biofuel pro-duction in America, including stifl ing the progress of advanced and cellulosic ethanol technologies,” Dinneen said. “A particu-larly important part of this agreement is the commitment to con-tinue the evolution of the industry to new technologies and new feedstocks for cellulosic ethanol. We are pleased the agreement recognizes the importance of cellulosic ethanol by committing $305 million to this effort. However, we are concerned that cap-ping cellulosic ethanol development sends the wrong signal and we will continue to work with the Congress and the Obama Ad-ministration to address this anomaly as this process continues.”

Under the agreement, outlined in a letter to Majority Leader Harry Reid and Minority Leader Mitch McConnell:

• The 45¢-per-gallon VEETC will be repealed on July 31.• The 54¢-per-gallon tariff on ethanol imports will also ex-

pire on July 31.• The $1.01-per-gallon tax credit for cellulosic biofuels produc-

tion, which was to expire at the end of 2012, will be extended for three years to the end of 2015. It will be capped at 50 million gal-lons in 2013, 100 million gallons in 2014 and 155 million gallons in 2015. Unused gallons will roll to the next year, and it includes a

depreciation allowance for cellulosic plants and expands the defi nition of cellulosic biofuels to include fuels from algae.

• The alternative fueling infrastructure tax credit, which was to expire at the end of this year, will be extended three years to the end of 2014. The investment tax credit will be reduced from 30% to 20%, effective Jan. 1, 2012.

• The Small Producer Tax Credit, which was to expire at the end of this year, will be extended one year to the end of 2012. The per-gallon credit will be reduced from 10¢ to 7¢.

During the International Fuel Ethanol Workshop and Expo in late June, Dinneen had said if the tariff were repealed, he would expect an increase in imports of Brazilian ethanol. That might also mean more U.S. ethanol heading to Brazil, he said.

“The absurdity of us bringing 200 to 300 million gallons in because our product can’t be shipped to California to meet their standards, but having to ship 600 to 800 million gallons to Brazil to make up for their shortfall in production does sort of boggle the mind,” Dinneen said during the FEW. “But I think that it is likely to happen. You will see increased exports, but also increased imports.”

Also during the conference, Dinneen said it’s no secret that the ethanol industry was facing a hostile environment in Washington, D.C.

“In D.C. these days, you get what you can get when you can get it,” he said. “Washington, D.C. is as dysfunctional as it’s ever been.”

The industry needs to show outrage about the one-sided de-bate that has been going on, Dinneen said.

“We need to make sure we are educating people and holding our members of Congress accountable, letting them know what is important to us,” he said. “The industry is quite comfortable be-cause of the underlying policy of the Renewable Fuels Standard and the reality of the marketplace today. We’re 10% of the nation’s gasoline supply; we’re going to be OK. They just can’t replace us.

“We’re always going to have a strong support base, but don’t be mistaken, we’re always going to have well-funded, highly mo-tivated opponents.”

Senators agree to repeal VEETC, ethanol tariff

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Dinneen

FEATURE: MARKETING MANEUVERS

www.BioFuelsBusiness.com I BIOFUELS BUSINESS I July 2011 19

Edmontonconvert waste to biofuels and value-added chemicals.

Other pieces of the project include a commercial waste-to-biofuels facility under construction by Enerkem and expected to start production in 2012, and a municipal waste process fa-cility that is expected to start operations this year. AI-EES is providing C$29 million, Alberta Energy C$3.35 million and the

he Advanced Energy Research Facility, the fi rst part of a C$132.5-million waste-to-biofuels project in Edmon-ton, Alberta, Canada, opened at the end of June.

The project, which is a partnership with Enerkem, Alberta Innovates–Energy and Environment Solutions (AI-EES) and the city of Edmonton, includes a pilot plant and lab that can

Facility includes pilot plant, lab that will convert waste to biofuels, value-added chemicals

Tby Susan Reidy

F E AT U R E

Advanced biofuels center opens in

(Above) Edmonton Mayor Stephen Mandel, Enerkem President and Chief Executive Offi cer Esteban Chornet and Minister of Advanced Education and Technology Greg Weadick open the Advanced Research Facility on June 23 in Edmonton, Alberta, Canada. Photo courtesy of the Edmonton Waste-to-Biofuels project.

WE SEE BIOFUELS.In our dreams. Awake. All the time. Everywhere.

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[email protected]

For more information, see Page 22.

20 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

city of Edmonton is providing C$43.5 million to the project. “Alberta may be known for our oil and gas, but projects

like this one prove we are leaders in green energy develop-ment, too,” said Greg Weadick, minister of advanced edu-cation and technology. “Countries worldwide want greener energy and there’s no other place with our combination of research talent, one-of-a-kind infrastructure, and back-ground in energy development to bring this kind of tech-nology to the world.”

RESEARCH FACILITYThe C$12.5-million research facility can test diverse feed-

stocks for gasifi cation and production of higher value liquid products from syngas. It includes:

• a 300 kilogram-per-hour pilot gasifi cation system with gas conditioning, cleaning and methanol synthesis system to test waste feedstocks;

• a waste feedstock preparation system; • a bench scale gas-to-liquids catalytic research lab; • analytical equipment to test waste feedstock characteris-

tics and syngas composition; • room for additional research work; • a specialized staff; and • access to common utilities needed for gasification

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FEATURE: ADVANCED BIOFUELS CENTER OPENS IN EDMONTON

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and potential use of the installed thermal oxidizer to com-bust syngas.

“Enerkem is proud to take part in this innovative project by providing its leading technology and expertise in the conver-sion of waste into biochemicals and clean fuels,” said Vincent Chornet, Enerkem’s president and chief executive offi cer. “This state-of-the-art facility will attract high caliber researchers from around the world, and will lead to the production of more sustain-able products.”

According to AI-EES, the facility is designed to be “plug and play” so that researchers can test their processes at the facility in real time with actual feedstocks.

Potential add-on systems could include work on advanced biofuels such as DME, bioethylene and bio-syndiesel.

PROJECT BENEFITSEnerkem is constructing a commercial biofuels production

facility that will have the capacity to produce 36 million gal-lons of ethanol per year from municipal solid waste (MSW). Enerkem and the city of Edmonton have entered into a 25-year agreement for the supply of 100,000 tonnes of sorted MSW per year that would otherwise go to the landfi ll.

The facility will use Enerkem’s thermochemical process to produce biofuels. The process involves heat, pressure, ad-vanced chemistry and catalysts. Conversion takes less than four minutes.

The third piece in the Edmonton project is the municipal waste processing and transfer facility. It includes a waste transfer operation, a pre-processing operation and a refuse de-rived fuel plant (RDF). The facility will allow the city to sort waste into streams destined for composting, recycling, land-fi lling and biofuels production.

During pre-processing, residential and suitable commercial waste is sorted mechanically and manually into three streams — organic materials which are conveyed to the composting facility; cardboard and metals for recycling; and non-recycla-ble, non-compostable waste for conversion into RDF. At the RDF plant, a mechanical system will prepare and shred feed-stock for the biofuels facility.

Developers believe the project will have a multitude of environmental, economical and technological benefi ts. It’s expected to reduce Alberta’s carbon dioxide footprint by more than 6 million tonnes over the next 25 years, the equivalent of taking 42,000 cars off the road every year. The project will also lower the demand for landfi lling, cre-ate green jobs, create a new local industry and improve en-ergy effi ciency.

The research facility will develop and improve the tech-nologies capable of converting residual biomass into biofuels and chemicals while elevating Canada’s research and devel-opment profi le internationally.

www.BioFuelsBusiness.com I BIOFUELS BUSINESS I July 2011 21

Lallemand Ethanol Technology introduces new yeast for ethanol production

MILWAUKEE, WISCONSIN, U.S. — Lallemand Ethanol Technology on June 27 introduced a new yeast product for the fuel ethanol industry. The yet-to-be-named yeast is the fi rst product to be patented (pending) and commercialized out of the exclusive partnership between Lallemand Ethanol Tech-nology and Xylogenics, Inc.

Lallemand said the yeast was developed using extensive genomics knowledge, and that this new class of yeast is engineered to demonstrate characteristics that signifi cantly change sugar uptake kinetics. This change will result in benefi ts of increased

yield (up to 4%), increased capacity, reduced fermentation time and reduced ingredient costs. This yeast is designed to replace existing yeast in fi rst generation ethanol facilities.

“Our success is defi ned by our customers’ success, whether it be effi ciencies attained, increased volume output or greater profi tability,” said Bill Nankervis, Lallemand Ethanol Technology general manager. “Because of the introduction of this technology, we expect our customers to realize real benefi ts that help them remain in the black in today’s challenging market environment.”

SUPPLIERNEWS

Novozymes wins Abengoa’s sustainability award

Genencor launches cellulose biofuel enzyme

SEVILLE, SPAIN — At an award ceremony on June 27 at Abengoa’s headquarters in Seville, Spain, Novozymes be-came the fi rst ever recipient of the Focus-Abengoa Founda-tion Sustainable Business Award.

Teresa Ribera, the Spanish Secretary of State for Climate Change, presided over the presentation ceremony, accompanied by José B. Terceiro, president of the Focus-Abengoa Foundation and vice-chairman of Abengoa.

“Every company that supplies goods or services to Abengoa signs a code of social responsibility in which they agree to comply with all the social and environmental aspects contained in the United Nations Global Compact,” said Terceiro. “Our work would not be possible without the active involvement of all of the companies in our supply chain which have adopted this challenge and have promoted it in their respective organizations. We therefore decided to create the Focus-Abengoa Sustainable Business Award to recognize our suppliers’ efforts.”

Novozymes has been supplying Abengoa with enzymes since 2001, when its fi rst biofuel plants started up. Novozymes won the Sustainable Business Award in the Large Company category for its lifecycle studies, which include the supply of enzymes for the production of biofuel, technical support for their application, and details about the carbon footprint of the enzymes supplied to Abengoa.

“We’re very honored to receive the award,” said Lars Christian Hansen, Novozymes president for region Europe. “Not only is Abengoa a long-term partner of Novozymes. They are also true leaders in their fi eld, and this contest sends a strong statement to the global community that sustainability development is important for the business agenda globally.”

The Sustainable Business Awards, created in November 2010, aim to publicly recognize Abengoa’s suppliers that are committed to sustainable development and combating climate change.

PALO ALTO, CALIFORNIA, U.S. — Genencor announced on June 22 the release of Accellerase TRIO, which it said will allow biofuel producers to more cost-effectively manu-facture cellulosic ethanol from a wide range of renewable non-food feedstocks such as switchgrass, wheat straw and corn stover as well as from municipal solid waste.

“Second-generation biofuels offer important energy security as well as economic and environmental benefi ts to countries such as the U.S., China, India and European nations that import a majority of their oil,” said Genencor Chief Executive Offi cer Tjerk de Ruiter. “Accellerase TRIO can accelerate the commercial production of cellulosic biofuels in markets across the world, helping many countries and companies fi nd a more sustainable alternative to petroleum.”

Accellerase TRIO allows for a low enzyme dosage to

produce ethanol, helping to improve the economics of cellulosic biofuel production. Genencor has improved the effectiveness of converting biomass into sugars, a critical step in the production of cellulosic ethanol. With Accellerase TRIO, Genencor provides a combined “cocktail” of enzymes all in one product to breakdown the glucan (C6) and xylan (C5) in the biomass feedstock into fermentable sugars, thus increasing the ethanol yield per unit of feedstock.

Ethanol producers will discover other benefi ts, Genecor said. Accellerase TRIO works with a variety of renewable feedstocks, allowing producers to select non-food crops and municipal solid waste that are abundant in their region to convert to ethanol or biochemicals. In addition, Accellerase TRIO can help boost total production by lowering viscosity and enabling producers to process more biomass.

22 July 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com

Biofuels Business ................................................ 23

Burns & McDonnell ............................................ 19

Ethanol Technology Institute ................................ 4

GEA Westfalia Separator, Inc. ............................... 2

Intertek ............................................................. 13

KATZEN International, Inc. ................................. 24

Louis Dreyfus Corp. ............................................. 9

Schlagel ............................................................... 3

Silos Cordoba .................................................... 11

Union Iron Works ............................................... 20

Vogelbusch USA Inc. ......................................... 13

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www.katzen.com

www.LDCommodities.com

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