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The Navy's Green Strike Group Sails on Biofuels Blend: Will It Sail Again?

Jim Lane, Biofuels Digest
July 19, 2012  |  45 Comments

In Hawaii, the US Navy demonstrated its Green Strike Group as part of the 2012 Rim of the Pacific Exercise (RIMPAC), the world's largest international maritime warfare exercise that includes 40 surface ships, six submarines, more than 200 aircraft and 25,000 personnel from 22 different nations.

On July 17th, military Sealift Command fleet replenishment oiler USNS Henry J. Kaiser (T-AO 187) delivered 700,000 gallons of hydro-treated renewable diesel fuel, or HRD76, to three ships of the strike group. Kaiser also delivered 200,000 gallons of hydro-treated renewable aviation fuel, or HRJ5, to Nimitz. The fuels were provided by Solazyme and Dynamic Fuels.

Both fuels are a 50-50 blend of traditional petroleum-based fuel and biofuel comprised of a mix of waste cooking oil and algae oil. Both companies are expected to deliver 900,000 gallons of a 50-50 blend of advanced biofuels and traditional petroleum-based fuel to the U.S. Navy aircraft carrier USS Nimitz (CVN 68) strike group. The fuel delivery is part of the Navy’s Great Green Fleet demonstration, which allows the Navy to test, evaluate and demonstrate the cross-platform utility and functionality of advanced biofuels in an operational setting.

A note from Vice Admiral Philip Hart Cullom, Deputy Chief of Naval Operations for Fleet Readiness and Logistics

“Energy is an integral part of warfighting. It has been since the Industrial Revolution, and that’s not about to change. If you are a Sailor, government civilian or a contractor on the Navy team reading this blog, I ask you to do your part by thinking Energy in everything you do.

“This week, as part of the international Rim of the Pacific Exercise, the Navy embarks on the largest demonstration of military operations using renewable biofuel. In the modern age of warfare, energy is fundamental to our warfighting. We use it in our aircraft, ships, and expeditionary vehicles, and throughout our shore infrastructure. Unfortunately, this makes fuel both an indispensible enabler of our warfighting and a major potential liability.

“When there are unpredictable spikes in the price of fuel, our Sailors and Marines are likely to fly less, steam less, and train less. This is not an insubstantial expense, and we cannot, and should not, trade readiness for fuel.

“Advanced 2nd and 3rd generation alternative fuels, such as those we are experimenting with during RIMPAC, will allow us to continue to perform our mission in a manner that frees us from relying upon a diminishing resource. As with the development of any new technology or product, up-front research and development costs in alternative fuels are a necessary part of getting to a new way to power the Fleet. Technological advances and demand are beginning to drive economies of scale and production quantities that can drive down the costs of alternative fuels.”

Vice Admiral Cullom also provided a video message, available here via YouTube.

Industry reaction

Advanced Biofuels Association President Michael McAdams

“This is a significant achievement for America’s domestic biofuels industry, and a proud moment for our nation as we’re seeing the results of American ingenuity and innovation in this home grown advanced biofuel that is successfully powering the world’s largest state of the art warships. What’s happening today in the waters of the Pacific is proof that America’s domestic biofuels industry is no longer assessing hypotheticals of ifs or when, instead, today, we are now asking, how much do you need? Moving from the beaker to the barrel, all in record time.”

Mary Rosenthal, executive director of the Algal Biomass Organization

“Today’s successful  demonstration of the ‘Great Green Fleet’ at the Rim of the Pacific Exercise is the latest in a series of tests by the Navy and other major players that show that algae-based fuels can perform the same, or better, than petroleum fuels.

“Fuels made from algae are made in the U.S.A, are 100-percent compatible with existing infrastructure, and in the near future, will be price-competitive with petroleum.  By developing domestic alternatives to petroleum, the U.S. algae industry is helping to reduce our reliance on imported oil, creating manufacturing jobs in rural communities, and strengthening our national security.”

The 6 Big Myths of Military Biofuels

Myths abound on military biofuels — some passed around by the usual suspects in an attempt to create fear, uncertainty and doubt, and thereby win crucial political points during an election season.

As a Reuters report notes, “Congressional Republicans have denounced the military’s green energy push as another attempt by the Obama administration to promote alternative fuels even when they make little economic sense, as in the case of the government-funded solar panel maker Solyndra, which went bankrupt last year.”

Others seem more to be the product of naïvete, often by members of the media who struggle to master the science and economics of energy under the pressure of journalistic deadlines.

In this context we’d like to examine assertions made in a feature story on the Green Strike Group published this week in Wired’s online Danger Room, entitled “How the Navy’s Incompetence Sank the ‘Green Fleet.”

Myth #1. Military Biofuels will cost an extra $1.8 billion per year.

True or False? Is there “a little-noticed Defense Department report shows that the Navy could spend as much as an extra $1.8 billion per year if it buys all the biofuel it’s pledged to burn?”

False and false. Which is to say, congressional Republicans have been attempting to give the report more visibility than the Declaration of Independence.

The report does mention a figure of $1.8 billion – absent the invocation of the Defense Production Act Title III, which would ensure that advanced biofuels are, in fact, cost-competitive with fossil fuels. The Obama Administration, working with the Navy, simply followed the recommendations of the 2011 report and invoked the DPA to ensure that switching to green fuels would not involve great expense to taxpayers.

The report is here.

Myth #2. Advanced biofuels falling 98 percent short of Congressional targets.

True or false? “In 2007, Congress set a goal of producing two billion gallons of advanced biofuels within five years. But today, firms can only generate around 40 million gallons of the stuff — 98 percent less than the original plan’s total.”

False. Advanced biofuels, as defined in the Congressional goal, specifically include sugarcane ethanol and biodiesel, and more than 10 billion gallons “of the stuff” were produced around the world last year – vastly exceeding the Congressional target.

How did Wired get its, er, wires crossed? By mixing up the definition of cellulosic biofuels with advanced biofuels. As it happens, none of the fuels used in yesterday’s exercise were cellulosic biofuels.

Myth #3. There is no biofuels production in the US capable of supporting military fuels – it’s fantasy fuel.

True or false? “Currently, there’s not a single commercial-grade biorefinery operating in this country.”

False and false. There are more than 180 biorefineries operating in the United States. More importantly, since what Wired is driving at is the manufacture of military fuels (rather than, say, ethanol), all of them capable of making intermediates that can be upgraded to military-spec aviation fuel.

Keep in mind, all biofuels made for military purposes today are manufactured in a two step-process – first, an intermediate is made, and then it is upgraded through processes such as UOP’s hydroprocessing technology. It’s the same with crude – you don’t pour crude oil into an aircraft or destroyer – after recovery, it is processed and upgraded at a refinery to meet a military spec.

Also keep this in mind. In the 2012 demonstration the HEFA fuels were used, from a new renewable fuel spec developed and approved in the past two years, and which primarily utilizes fats, oils and greases to make renewable fuels.

By the 2016 deployment of the Green Strike Group, the ATJ standard is expected to have been approved. What’s that? Instead of upgrading oils to military fuels, this is for the upgrade of alcohols into fuels. The military will have a vastly larger pool of suppliers and production capacity to tap into in 2016.

So, why all the fuss about invoking the DPA? The Navy is planning to use the DPA to ensure that it has a reliable, cost-competitive supply of military fuels. DPA-invested production capacity will be, by contract, providing fuels at a cost-competitive price and with a dedicated supply to the military. The US Navy, like everyone else, is determined not to repeat the mistake of recent years and buying renewable fuels in the open market.

In this way, it is returning to the same strategy it used in the conversion from coal to petroleum back in the early 1900s.

The oil industry in Wyoming really got underway with the Teapot Dome complex, which was a Navy fuel production depot. Ultimately that complex was released to the public (initiating an energy brouhaha – the Teapot Dome scandal – that makes the upheaval over Solyndra look like chicken feed, and was described as the most serious public scandal prior to Watergate). President Harding’s Interior Secretary, Albert Fall, in fact went to jail as a result of the scandal, the first US cabinet official ever to do so.

The British Navy did much the same when converting from coal to oil. Concerned over supplies and costs, First Lord of the Admiralty Winston Churchill pushed through a plan to found the Anglo-Persian Oil Company to guarantee afordable, reliable sources of the new fuel. Today, that company is still around – it’s BP.

Myth #4. Biofuels are heavily subsidized and are a showcase for government subsidy programs gone wrong.

True or false? “In 1980, Congress began a major investment in the production of corn-based ethanol with a 45-cents-ger-gallon subsidy. Thirty years and $45 billion later, that program is widely considered to be a disaster; at least 40 percent of the U.S. corn industry is now diverted into producing biofuel.”

True and false. True, the Congress introduced a subsidy in 1980. The program has resulted in, according to the most recent study, a $1.09 per gallon reduction in the cost of gasoline by reducing US petroleum demand, almost single-handedly eliminated a farm support that was costing US taxpayers even more than the ethanol subsidy; and the ethanol subsidy itself has been discontinued.

On the 40 percent figure, Wired has mistaken corn shipments to ethanol plants for corn usage by ethanol plants. It’s true (well, not quite, but close enough for horseshoes) 40 percent of corn is shipped to US ethanol plants – but only one-third of the corn kernel, by weight, is used for ethanol. Another third, for example, is returned to the feed markets as a low-cost, high-protein animal feed.

Imagine if you will, the family of eight at the Sunday dinner table. You are the first, say, to tuck into the mashed potatoes. You take your share of a 2-pound tub, and then pass it to your right, and everyone takes their share. It is not true to say that you consumed 2 pounds of mashed potatoes.

Myth #5. Biofuels technologies drive up food prices, excepting technologies that never seem to arrive.

True or false?  “If you use crop land, you increase the price of food. Using ‘new’ land would work — if you depend on a bunch of technologies which haven’t been commercialized yet, a bunch of things that don’t really exist in this world.”

False and false. Food and crops are not the same things, just because food is made from crops. Lots of things go into making food – mostly, energy and marketing. In a $4 box of Corn Flakes, there is less than 10 cents worth of corn. I know – you’re about to tell me that I am referring to processed foods, as are used in developed countries – but what about staple foods such as are used in Africa. Well, let’s consider (sub-Saharan) Africa, and the traditional staple crop, cassava. Eat that raw, you die – without energy-intensive cooking, it forms a cyanide in your body.

And, it’s false that “a bunch of technologies which haven’t been commercialized yet, a bunch of things that don’t really exist in this world” are required to make biofuels from ‘new land’.

Take for instance, Dynamic Fuels’ 75 million gallon commercial-scale facility, which makes military fuel intermediates from animal waste – and which provided much of the fuel for this 2012 demonstration.

Myth #6. Former green tech supporters are now leading the charge against advanced biofuels.

True or false. “One-time green tech supporters were now lashing out at the biofuel program. During the 2008 election, Sen. John McCain pushed his plan to “in five years become oil independent,” modeled after the U.S. military’s project to build the atomic bomb.”

A mile from true. Arizona Senator John McCain is the long-time, well-known, leading opponent of biofuels, in virtually all its forms, for more than a decade. The Senator is one of just 20 or so Senators who voted against the Bush Administration’s Renewable Fuel Standard legislation (The Energy Independence and Security Act), and has been a leading opponent of cleantech mandates in power and fuels, cleantech tax incentives, production tax credits, and loan guarantees.

As Friends of the Earth pointed out in the last election cycle:

“John McCain says he opposes funding wind and solar: “You should let the free-enterprise system take over,” McCain says [Grist, 10/1/07]. McCain no-shows for vote to extend renewable energy tax credit, measure fails by one-vote margin, McCain advisor later says he opposed measure [CQ, 12/13/07]. McCain previously voted against tax credits encouraging renewable energy production [Senate Vote 42, 3/14/06; Senate Vote 125, 5/21/01]. McCain votes against establishing national renewable energy standard to promote wind, solar and other alternatives [Senate Vote 141, 6/16/05; Senate Vote 50 3/14/02; Senate Vote 55 3/21/02; Senate Vote 59 3/21/02].”

Not that there’s anything wrong with the Senator taking a position against federal investment in developing new technologies and industries. It’s just plain wrong to style Sentator McCain as a green tech supporter in this context.

Will the Green Strike Group – much less the Great Green Fleet – sail again?

If the Navy has its way, yes. Will the Navy get its way? Much depends on the 2012 US presidential election and, just as crucially on the US congressional elections.

One thing you can take to the bank. Should the Fleet sail again and when the Fleet sails again, it will not be at a massive cost to the taxpayer. That’s the purpose of the DPA Title III program, which should properly be seen in the context of the way that the Navy’s transition from coal to oil was structured, not dissimilarly, in the early 20th century.

A note on leadership from Gen. Colin Powell (Ret.)

“In the military we are always looking for ways to leverage up our forces. Perpetual optimism, believing in yourself, believing in your purpose, believing you will prevail, and demonstrating passion and confidence is a force multiplier.”

This article was originally published on Biofuels Digest and was republished with permission.

Lead Image: Navy vessel via Shutterstock

45 Comments

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Cliff Claven
Cliff Claven
August 15, 2012
@ETCgreen: you are the one who said of Saudi Arabia in the context of generating electrical power that 'they are now installing biodiesel orchards.' I disputed that claim. Biodiesel orchards in Africa and Madagascar will not help them generate electrical power in Saudi Arabia. You also claimed ME nations have 'very little natural gas.' I think Qatar, with the world's largest gas reserves and Saudi Arabia, as the world's largest LNG exporter might challenge that claim as well. Saudi has so much gas, they are converting much of their internal energy infrastructure to natural gas with their 10M m3 per day Master Gas System to allow them to maximize petroleum export because it is far easier to ship than cryogenic LNG. Saudi Arabia and all oil producing non-OECD states subsidize internal consumption of oil because they can. Oil not only pays its own way, but is used to prop up many industries and many governments that otherwise couldn't survive. Biofuels are among those riding the coattails of cheap fossil fuel energy.
Steve Frazer
Steve Frazer
August 15, 2012
@cliff

Back from designing a 150,000 hectare biodiesel feedstock orchard in South America.

You are leaping again in your most recent post above. The Saudi's are not planting biodiesel orchards in Saudi Arabia, they are planting in Africa and Madagascar.

Also, to suggest that Saudi petroleum reserves are beyond the actual published would be almost a unique perspective as virtually every petroleum exploratory professional and most bankers suggest that the published reserves are a factor of the reality for financial reasons.

Good to know you are maintaining your optimism. It makes me wonder if you are also a climate change denier?

http://etcgreen.com/study/koch-funded-climate-change-denier-turnaround
Cliff Claven
Cliff Claven
July 30, 2012
BTW, Saudi Arabia has a huge endowment of natural gas and is massively revamping their infrastructure to use it for their internal energy needs to free up all their oil for export because it offers a better return than shipping cryogenic LNG. Campbell's predictions of falling Saudi production continue to be invalidated. You say Saudi Arabia is planting biofuel orchards. This is a very interesting claim considering they recently abandoned a 40-year program to become self-sufficient in food because they are exhausting their fossil water supplies and it is not cost-effective to desalinate water for food vice importing it. Here is a chart of their biodiesel usage from 2000 to 2010 http://www.indexmundi.com/energy.aspx?country=sa?uct=biodiesel&graph=consumption (hint: it's all zeros). If they are not willing to spend a liter of fuel to desalinate 1,000 liters of water, why would they be willing to spend 10,000-20,000 liters of water to make a liter of biodiesel? Please tell me more about Saudi Arabia's own biofuels programs (not other country's biofuels programs in Saudi Arabia).
Cliff Claven
Cliff Claven
July 30, 2012
@ETCgreen. I totally agree that primary energy is the most dominant factor for economic performance, and specifically, that falling oil EROI was a huge contributor to the 2008 economic collapse. Thanks for helping make my point. Here is a great paper that links dips in fossil fuel EROI to economic recessions (King, C. W. "Energy Intensity Ratios as Net Energy Measures of United States Energy Production and Expenditures." Environmental Research Letters 5, no. 4 (October 1, 2010): 044006. http://iopscience.iop.org/1748-9326/5/4/044006 ). King found that when primary fuel EROI drops below 6:1, it drives a modern economy into recession--exactly what I am arguing and why biofuels, with EROIs no higher than 2:1 and the vast majority below unity, offer nothing but accelerated economic collapse by diverting more efficient fuels and essential food production resources into this thermodynamic sinkhole. I never mentioned a cause for the 2008 economic collapse, only that the 3% drop in consumer demand for oil was a consequence, and that fact is important because it shows that energy demand is elastic, unlike claims by such as Campbell and Martenson and Deffeyes who have been proven wrong again and again in their predictions of peak oil (1998, 2000, 2005, 2008). If you don't dispute the low EROIs of biofuels, than it is really game over. Nothing with an EROI less than 6:1 is worth scaling up to anything beyond laboratory bench scale, and scaling it up actually hurts the overall economy. Fortunately, coal EROI is way above 20:1 and we have enormous quantities. But even more fortuitously, oil EROI is still very responsive to capital investment. The world will see how responsive in the next couple of years as all the wells that have been tapped and capped since 2003 actually start to go into production. Oil production right now is limited only by the number of deepwater platforms and the scarcity of petroleum engineers. 2016 (or sooner) will be the next 1986.
Cliff Claven
Cliff Claven
July 30, 2012
@ETCgreen. Those who once published oil as 100:1 have since recanted. Here is the most recent EROI paper by four prominent voices in the field (Guilford, Megan C., Charles A.S. Hall, Pete O' Connor, and Cutler J. Cleveland. "A New Long Term Assessment of Energy Return on Investment (EROI) for U.S. Oil and Gas Discovery and Production." Sustainability 3, no. 10 (October 14, 2011): 1866–1887. http://www.mdpi.com//2071-1050/3/10/1866/ ). Figure 2 is the most germane. And the peak was not at the beginning in 1859 when there were no storage tanks or pipelines or refineries or supertankers or gas stations or all the other infrastructure investments which increased access to and usability of oil and upon which returns are generated and calculated. Since 1920, the EROI of crude to mogas has oscillated between 24:1 and 8:1. It goes down when prices are high and there is a frenzy of drilling activity (e.g., 1974-1986), and then it skyrockets 6-10 years later when the fruit of all the capital investment pays off and the spigots around the world are opened and the price collapses (e.g., 1986-2003). There is an accordion effect between demand and supply, between capital investment and EROI payoff. The difference between fossil fuels and biofuels is that fossil fuel EROI has always been high enough to bootstrap all the capital investment, while biofuels are a sinkhole that keeps begging for more fossil fuel energy and more taxpayer money to get to the fabled point of break-even 1:1 EROI. It is utlimate foolishness to pursue as a primary energy source something that is a negative or marginally positive energy balance parasite of another energy source--and that is exactly what biofuels are. We need primary energy source EROI to be above 6:1 to power a modern jet-age international trade-dependent civilization,. 3:1 is the bare minimum to get electricity through the wires to an end user. 1.25:1 of Corn ethanol of your self-confessed 1.5:1 for yellowhorn is a starvation diet.
Steve Frazer
Steve Frazer
July 29, 2012
@cliff - You are aware of petroleum's historic EROI - 1/100 one hundred years ago to the current 1/14 for conventional down to 1/4 for shale and 1/3 for bitumen.

These are not numbers that will support gasoline at the pumps below $7 gallon. The more important variable is net importing vs. net exporting. When the net exporting nations cease to export, the system fails. Why would that happen? Have you filled your tank in Caracas or Riyadh lately? The cost is about $.50 per gallon no matter the international price of petroleum.

Also, how do the middle east nations generate electricity? They have no coal, very little natural gas, we don't want them to have nuclear, they have yet to invest in renewables (though they are now installing biodiesel orchards) - they burn bunker fuel - millions of gallons of bunker fuel each and every day. And what is the cost of that fuel to the public utilities? About $.07/gallon. So when the Saudi's petroleum reserves drop below a threshold of comfort, will they continue to sell their petroleum internationally or will they generate electricity for their homes and businesses?

The massive investments in petroleum drilling today are reflective of the massive investments made in the late 1970's in response to the OPEC energy shock. This direction is simply not sustainable and those investors will demand massive returns so the price of future petroleum sourced fuels will be very dear indeed.
Steve Frazer
Steve Frazer
July 29, 2012
@cliff You also made the statement, "Global petroleum production dipped in 2009 because of the global financial collapse" in your previous post. Good grief, with your demand for data and papers, certainly you do not cater to the mass media explanation of the Recession and looming Depression?

Most everyone will agree that what blew up the sub-prime mortgage system was the sudden move in interest rates. The Fed Funds interest rate went from 1% (basically free money) to 5.5% over the course of 2 years. A nation's interest rate is a mere image of its inflation rate. In 2004 the inflation rate in the U.S. was 1%, but by 2006 the rate was almost 6%. What drove that increase in inflation? One factor - one component in the U.S. CPI; Energy. Energy inflation was running at 35% as petroleum prices more than doubled. The sub-prime mortgage crisis was not the cause of the Recession, it was only a high-level symptom. The cause of the Recession was an energy shock - twice as large as the OPEC Shock of the 1970's.

Petroleum has been the largest traded commodity in the world for almost 100 years so even a small change in price has a rippling and compounding impact on world GDP and a large change will have a staggering and long term effect on world GDP. The current Recession is the most severe compared to past Recessions simply because the 2008 petroleum peak price was the historic record high. The looming "double dip" or a full blown Depression will also be the result of the continued soaring petroleum prices. Though the price of petroleum dropped from its 2008 $147 barrel peak down to the high $40's, trading quickly recovered to the low $90's and again peaked over $110. Respected petroleum analysts are projecting a return to a $100+ barrel price within the coming months and the impact this will have to the already weak global economies will not have been experienced since the Great Depression.
Steve Frazer
Steve Frazer
July 29, 2012
@cliff - So finally the real difference in perspective - a veritable chasm - surfaces. The concept that you identify on the side of the table with the deniers who suggest we have decades of petroleum that can be processed into transportation fuel is the ultimate and final proverbial straw.

Exactly how do you ignore the research and writings of the majority of the major petroleum firms' exploratory engineers? Dr. Colin Campbell's career virtually defined the science of petroleum exploration and extraction. He and dozens of his fellow petroleum industry engineering peers founded the ASPO and ODAC and their papers are historic with indisputable data.

Who are you working for? Why would you suggest to the casual reader they can continue to drive their 20mpg gasoline powered car for the rest of their lives? Should they continue in this mode of operation, the impact to their world will be significant.
ulrich krauskopf
ulrich krauskopf
July 29, 2012
arguing from the confines of self imposed blinders got us in today's mess. if Cliff and Green etc could pool their knowledge and apply to all possible alternatives, this may actually turn intelligent
Cliff Claven
Cliff Claven
July 29, 2012
What you said: "there will be no petroleum derived transportation fuels at the "end of this century" as you suggest. Actually, I doubt if there are any in the U.S. by 2040."
What I said: "Have your friends feed you one of their agency reports dated 2011 or more recent that predicts the end of oil as transportation fuel and post it for us all."
No leap.
Thank you for steering me to some of your source information. Much happier to work with something that all can look at for themselves. Here is what DOE was saying in 2010 from a link in your website article, "The U.S. Department of Energy admits that "a chance exists that we may experience a decline" of world liquid fuels production between 2011 and 2015 "if the investment is not there." And also that DOE expressly rejects "Peak Oil Theory." Their warning was about a 4-year interval of world production, not a long-term outlook, and predicated on a lack of investment. Guess what, there has been a frenzy of investment going on in petroleum since 2003 when rising prices made it a good risk. Global petroleum production dipped in 2009 because of the global financial collapse and a 3% drop in demand, but then resumed its climb and has continued to rise every year since setting a new all-time high in 2011. If you read the news, everyone is revising upward their long-term predictions of petroleum production and downward their predictions of petroleum fuel prices. Note that I did specifically request a report from 2011 or later. You keep bringing this back to oil, BTW. My gripe is with false claims, particularly about energy sources, since energy is absolutely fundamental to our civilization. There has been no richer source of false claims about energy than the biofuels sector.
Steve Frazer
Steve Frazer
July 29, 2012
@cliff - You have "leaped" once again. No where did I suggest we would ever run out of petroleum. There is likely over 1 trillion barrels of petroleum left in the ground so we will likely never run out of petroleum. What we will run out of and likely within the next decade is the petroleum we can afford to burn. Depletion is not just a geological term, it is also an economic term.

http://etcgreen.com/blog/general/are-you-driving-your-last-gasoline-powered-car

I suggest you follow the links to the DoE reports and the J.O.E. report for starters.
Cliff Claven
Cliff Claven
July 28, 2012
Upon what concrete data do you make your claims that oil will run out by 2040? You say you have relationships with DOE and USGS. Have your friends feed you one of their agency reports dated 2011 or more recent that predicts the end of oil as transportation fuel and post it for us all. I'm genuinely interested in the truth, but nothing you say matches published research (32 gallons diesel per barrel?). Again, please show us the data.
Steve Frazer
Steve Frazer
July 28, 2012
@cliff - By the way, there will be no petroleum derived transportation fuels at the "end of this century" as you suggest. Actually, I doubt if there are any in the U.S. by 2040. The change will be rapid and will impact all those who have not migrated. Expect extreme protectionism based legislative measures. Some will try to run E100 for some period of time, but the market will choose the winner as it always does. The next 10-20 years will be extremely painful for a society so completely depended on gasoline.
Steve Frazer
Steve Frazer
July 28, 2012
@cliff - actually there is no risk to our investors as most have already realized a substantial ROI. The best science is what works in the real world and we are making it work today. Your statement about gasoline volume production from a barrel of petroleum is a perfect example of why your perspective is so skewed. You need to research the diesel extraction per barrel by European refineries. We developed a business plan for Exxon for upgrading their U.S. based refineries to produce 32 gallons of diesel from each 42 gallon barrel of petroleum. They are beginning the process - they have no other choice. The revolution is biodiesel from 2nd generation feedstock blended with petroleum diesel per government mandates. This is already being driven in the U.S. (7 states so far) as it has been in most every other industrialized nation in the world today. It is the only environmentally friendly, economically viable, scalable and totally sustainable solution we have on the table today. Join the Migration.
Cliff Claven
Cliff Claven
July 28, 2012
As long as you are only risking private money, then your willful naivete and rejection of the latest and best science only hurts a small circle of folks who are equally naive. But when individuals with such a casual approach to the facts are in government positions of authority, such as the DOE, and spending taxpayer money by the truckload, then it becomes criminal negligence. There is a revolution brewing, but it is against fraud, waste, abuse, and the mythology of biofuels as green energy. Virtually all the diesel that will be combusted for the balance of the century will be from fossil fuel, and gasoline is not going away because twice as much gasoline comes from a barrel of oil as diesel and it is more suitable for a motor fuel than any other use. That's not advocacy, that's reality, and it's dictated by water footprint, greenhouse emissions and environmental concerns as much as by economics.
Steve Frazer
Steve Frazer
July 28, 2012
@cliff - Not sure I have encountered such a comprehensive nay-sayer in my half century on the planet - again, it still seems you are working as a lobbyist for the petroleum industry.

While our orchards are highly profitable today, only achieving 1K gallons/acre/year is far less attractive than 3K-14K. The business models of the two feedstock sources overlap by about 75%. Micro algae sourced biodiesel was my area of specialty while working for the DoE. Within 20 years, some double digit % of all of our transportation fuels will be sourced from micro algae.

Most any civil engineering grad student can side step the issues you cite above. It is a matter of expanding the systems and target products rather than to solve the immediate needs - ie; a hog farm to grow orchards. We have investments in production micro algae companies that are now producing non-transportation oils very profitably.

If you are not driving a diesel powered vehicle today, you should consider making the upgrade as your presented perspective of applied economics suggests you are having difficultly navigating your way through the various options in the market. Join the Migration - http:/etcgreen.com U.S. Migration
Cliff Claven
Cliff Claven
July 28, 2012
@ETCgreen: Okay, kind of a bait and switch there. I thought we were talking about orchards of jatropha or yellowhorn, in which case 3,764 gal/acre is beyond reason. The NREL link you sent is for a paper on algae. Those NREL numbers are consistent with the upper limit of practical production from several other sources (25-50 g/m2-day, 50% oil fraction, etc.). The objection to algae is not a yield of 3,764 gal/acre, it is EROI and water use. The UVA lifecycle analysis link I sent addresses the EROI, finding it to be break-even for shoveling the resulting dried algal biomass straight into a furnace and unrealistically getting full HHV out of it. Any attempt to convert the biomass it into liquid fuel would drive the energy balance negative. UT-Austin has quantified how negative by finding that just the mechanical energy required to circulate the water exceeds the output liquid fuel energy by a factor of seven (Murphy, et al., "Energy-Water Nexus for Mass Cultivation of Algae." Environmental Science & Technology 45, no. 13 (July 2011): 5861–5868. http://pubs.acs.org/doi/abs/10.1021/es200109z ). As to water, even if the algal species is saline, evaporative make-up water must be fresh or the salinity will increase and kill the algae. If you intend, against the recommendations of every lifecycle analysis I have found, to build outdoor bioreactors, then fresh water is needed for cooling, or heat build-up from the sun in the tubes will cook the algae. This is in addition to process water. There is also the huge issue of what to do with the massive volume of nitrogenous waste water and all the by-product biomass that has such marginal value, it is not economical to ship it any distance for use as feed or whatever. There is also the issue of providing the CO2, which it turns out cannot be simply supplied by flue gas, but must be preprocessed and then forcibly distributed through a high-pressure piping network throughout the algae ponds.
Steve Frazer
Steve Frazer
July 27, 2012
@cliff - thank you for the sources - not interested in ethanol at all - expect that product to cease to exist as a common transportation fuel within the coming years. Last month I was working with the business adviser for a government agency. I was showing him our numbers for our hog farm and he dismissed it completely. He did not understand the relationships. He did finally realize our financial model includes 2 revenue streams on exactly the same physical product. If you ask a brick layer to build you a house - they will likely build you a brick house. Ask a stone mason to build you a house and it will be a stone home. Cliff, you are an academic, lost in numbers and physics without embracing the economics of the amazing opportunity I have presented. You keep doubting and we'll change the world. Join the Migration - http://etcgreen.com U.S. Migration
Steve Frazer
Steve Frazer
July 27, 2012
@cliff - so you don't take stock in the opinion of our friends at NREL? Individuals on my team have data that supports similar numbers.

http://etcgreen.com/images/stories/theoreticalmaximum_algoil-20090611.pdf
Cliff Claven
Cliff Claven
July 26, 2012
@ETCgreen: 2010 U.S. transportation energy was 27 quads as found here (http://www.eia.gov/totalenergy/data/annual/diagram1.cfm ) and here (Lawrence Livermore National Laboratory. 'Estimated U.S Energy Use in 2010: ~98.0 Quads.' Lawrence Livermore National Laboratory, 2011. https://flowcharts.llnl.gov/content/energy/energy_archive/energy_flow_2010/LLNLUSEnergy2010.png. ). Haven't found more recent data yet from these sources. I think your number of 360 gal ethanol per acre of corn is more realistic than 500, but I was intentionally using the most optimistic numbers I have found in my research so that your claim would only be 7.5 times higher instead of 10.5 times higher than their yield per acre. As to new information, I prefer new data. Information comes with human interpretation that tends to be biased, and is often shrouded in clouds of misinformation and disinformation. Show me the data.
Cliff Claven
Cliff Claven
July 26, 2012
@ETCgreen, when your PhDs publish in a peer-reviewed science journal a lifecycle analysis of your process with statistical breakdowns of the inputs and outputs like this study of algae (Clarens, et al., "Environmental Life Cycle Comparison of Algae to Other Bioenergy Feedstocks." Environmental Science & Technology 44, no. 5 (March 2010): 1813–1819. http://pubs.acs.org/doi/abs/10.1021/es902838n. ) or this study of cellulosic ethanol (Patzek, Tadeusz W. "A Probabilistic Analysis of the Switchgrass Ethanol Cycle." Sustainability 2, no. 10 (September 30, 2010): 3158–3194. http://www.mdpi.com/2071-1050/2/10/3158/. ), then we will have moved beyond unverifiable investment brochure science to real science. Until then, I will trust what is published by reputable scientists in reputable journals on the subject. The report I cite on water footprint is by the world's foremost authority on the subject. Your claims are completely off that map. If you are Christopher Columbus, you have to bring back some tangible proof of the new world and let others examine it.
Steve Frazer
Steve Frazer
July 26, 2012
@cliff - One of our engineers holds U.S. Patents on phosphate recovery systems for waste water treatment plants and orchard drip irrigation recovery if you would like to banter those concepts around also. Our orchards are literally computer networks with thousands of sensors feeding data into remote computer arrays for processing within the feedback loops and optimum target models. We also utilize satellite data for soil moisture and a short list of other variables we monitor. Your presented numbers have never suggested run-off recovery or recycling. You need not continue to live in a very small box - think different. http://frazer.net/change.mov
Steve Frazer
Steve Frazer
July 26, 2012
@cliff - I received a text from one of my Staff that you continue to post less than supportive interpretations of our reality.

By the way, in speaking with a great many ethanol producers, the highest real-world yield I have encountered was 360 gallons/acre.

Your interpretation of my statement is either simply naive or intentionally confrontational. Why do you choose to approach new information in this negative way? Again, your mode of communication makes us believe you are a lobbyist for a petroleum firm.

My statement was that in 20 years, 2nd gen feedstock sourced biodiesel will replace 1/3rd of the petroleum used in the U.S. today. My statement could have been more clear where our calculation is based on 1/3rd of what we believe will be the transportation fuel demand in 20 years and we expect that demand to be about 1/2 of what it is today. Curious if your BTU numbers are current or from 3-4 years ago - they seem very high.

Our orchards are engineered for 800 gallons/acre/year and current micro algae systems (closed, VPBR, continuous flow) have well documented yields of 10,000-14,000 gallons/acre/year (regardless of the price per gallon). We expect our orchard yields will increase with improved practice and engineering within the next 20 years. Control orchards are achieving 1,300 gallons/acre/yr currently.

Again, our orchard water usage is 1/3rd less than what historically grew on the properties so our presence is water-positive by a factor for the regions. We have migrated those non-human-food crops to farm co-ops in other regions where they make better economic sense.

As I stated, our business model calls for 200,000 acres so I cannot speak for the balance of what we believe will be planted by others with respect to the source of fertilizers. The resources are certainly available.
Cliff Claven
Cliff Claven
July 25, 2012
In a typical Iowa acre they are using 150 lb of pure anhydrous ammonia (essentially pure hydrogen energy made from natural gas) as fertilizer to grow 180 bushels of GMO hybrid shelled corn that optimistically yields about 500 gal of ethanol (2.8 gal per bushel). You claim 20M acres of your crop (yellowhorn, jatropha, ?) grown organically without external inputs of fertilizer and with minimal water will replace '1/3rd of the petroleum used for transportation in the U.S. today.' That would be 9 quadrillion BTUs of energy = 75B gal of biodiesel = 3,764 gallons per acre of biodiesel. That's an impressive yield. I appeal to any real farmers out there to tell me if that is in the realm of the possible. Are you sure your PhDs aren't growing their own hemp?
Steve Frazer
Steve Frazer
July 25, 2012
I am headed to the orchards for a couple days, but I will leave you with this thought...

"Never doubt that a small group of people can change the world. Indeed, it is the only thing that ever has." ~Margaret Mead
Steve Frazer
Steve Frazer
July 25, 2012
@cliff 5th generation farmers such as several of my 1st cousins are in fact growing corn for ethanol, but none of them own any equipment or vehicles that burn the stuff. They need to earn a living and they are making decisions based on feeding their families. Our trees will not grow successfully in their climates today.

Other than the Ph.D.'s we have on staff and those we hired (total of 14) as consultants for our business model and operations, we have not worked with any others to publish papers. We have spent $M's in R&D and we are currently generating products for the consumption of our other divisions.

Our yields should not be anything but tiny to date - these orchards require 5-7 years to achieve maximum yield. When we begin to sell our biodiesel in 3 more years we expect the price to be about $3 gallon at the pumps after taxes. It will be that price in 3 years, 6 years, 9 years and 20 years (with reasonable inflation or deflation factors of course). We are targeting 200,000 acres over the next 20 years in-house and have studies showing over 20 million acres will be likely planted in the U.S. alone. This replaces about 1/3rd of the petroleum used for transportation in the U.S. today and will help to eliminate the 50M+ acres of 1st generation feedstock now planted.

Again, 2nd generation feedstock sourced biodiesel is the only scalable, environmentally friendly, economically viable and truly sustainable replacement we have for petroleum on the table today.

Join the Migration - http://etcgreen.com U.S. Migration
ulrich krauskopf
ulrich krauskopf
July 25, 2012
in response to green etc on cng automobiles, i understand your skepticism, what i suggest is not to close your mind to anything. check out http://www.ngvaeurope.eu/ i have driven some of these cars and others not listed. that europe has different set of facts does not make it automaticall wrong or right. it just shows it works if we try and we can solve the USA problem, if any.

as far as food sources are concerned my personal opinion is that it is a short sighted approach. we have believable models showing food and water running low for the increasing world population. to use a diminished availability product at a time when we are experiencing a loss of arable land seems questionable, never mind that math may be correct, but you can't eat or drink it.
ulrich krauskopf
ulrich krauskopf
July 25, 2012
in response to green etc on cng automobiles, i understand your skepticism, what i suggest is not to close your mind to anything. check out http://www.ngvaeurope.eu/ i have driven some of these cars and others not listed. that europe has different set of facts does not make it automaticall wrong or right. it just shows it works if we try and we can solve the USA problem, if any.

as far as food sources are concerned my personal opinion is that it is a short sighted approach. we have believable models showing food and water running low for the increasing world population. to use a diminished availability product at a time when we are experiencing a loss of arable land seems questionable, never mind that math may be correct, but you can't eat or drink it.
Cliff Claven
Cliff Claven
July 25, 2012
@ETCgreen: 5th generation farmers are farming corn for ethanol which we both agree is catastrophically foolish. Multiple PhDs say you can't do what you say you are doing unless your yields are inconsequentially tiny. Verifiable documented facts is what we're after, not degrees and pedigrees. You said you are partnered with the USDA. Is there a USDA study or university study or something published in a reputable, peer-reviewed journal that validates your farming practice that requires no external energy or water inputs? Where do you sell the biodiesel that results, what is the volume, and what is the price? Give us something to hang our hats on instead of investment brochure claims. I'd love for this to be truly viable, but it sounds like just another perpetual motion machine.
Steve Frazer
Steve Frazer
July 25, 2012
@ Cliff - for the new readers, I am a 5th generation U.S. Farmer with 2 engineering degrees. I was an Analyst/Project Mgr for the DoD and DoE for years. We are a 4th level partner with the USDA. We have made no fantastic or miraculous claims regarding what we do each and every day.

Our orchards are planted where there has never been human food crops planted in all of history and we produce our own fertilizers with specialized farm equipment running on B100. Water volume use (what is actually taken out of the land via product and an honest estimate of evaporation) is insignificant.

The U.S. has about 54 million acres of prime farmlands currently being used for corn ethanol and soy/canola for biodiesel that needs to be returned to food production. We lobby for this return to food on a regular basis and we salute your efforts to motivate government legislation to do the same.

We do not tap into any government incentives - we do not need them. We are a privately held firm building a better future for our nation. We have only 18 investors - 12 of them working employees - and they are happy with our progress.

We have a solution and are building on it and you are quoting academic papers that do not apply to our operation. I will humbly suggest you reevaluate your black and white macro approach and evaluate opportunities with more of a micro approach.

Lastly, if people were truly concerned about food volume over fuel volume, they would have legislatively banned ethanol years ago. You certainly are aware that the U.S. has fed the world for decades and the volatility in the world's desert nations today is a direct result of the U.S. radically reducing or completely eliminating food shipments to those nations. People are starving. If you want to believe Colin Campbell, then 1/2 of the world's current population will cease to exist by the end of this century. Land mass for food production will not be an issue.
Cliff Claven
Cliff Claven
July 25, 2012
@ETCgreen: every biofuel entrepreneur makes fantastic claims. Where is the documentation? I cite research published in the Proceedings of the National Academy of Sciences. It is there for anyone to examine and is based on data collected around the world with multiple feedstocks. Where is your data? What credible life-cycle analysis has been done to validate your miraculous claims? Simply saying my crop is not a food or labeling something "second generation" does not invalidate its competition with food. In fact, the scientific world and the agricultural world and the international food aid organizations are pushing back hard that any agriculturally-based fuel does in fact compete with food. If a crop requires land, water, farm equipment, fertilizer, herbicide, pesticides, etc., how can it not compete with food crops which require the same things? I know the average American can see the logic of this even if you refuse to.
Steve Frazer
Steve Frazer
July 25, 2012
@ulrich - I have never had anyone who has driven a CNG powered vehicle associate the word "wonderfully" with the performance of the vehicle. They are very low power and typically short range due to the low BTU rating.

To compare a CNG tank to a diesel tank is just uninformed. CNG is highly explosive and from that tank is a supply line that can ignite the escaping gas and potentially the tank. To ignite a diesel tank in most any type of accident would be a major effort.

Europe has enjoyed a free market economy over the past 10 years with respect to petroleum alternatives. Because the US government continues to subsidize our petroleum, our balance is seriously skewed.

The number of refueling stations in the U.S. vs. Europe is some factor greater. Also, the proximity to metro areas in the U.S. vs. Europe is also a significant factor for the distribution network.

I respect that CNG has evolved in Europe for over a decade, driven by the very real high cost of petroleum. Will the same happen in the U.S. moving forward driven by higher petroleum costs? I will again suggest no in that the numbers are simply staggering - $Trillions for CNG to rise to even a 20% market share.

The U.S. needs a drop-in fuel - a liquid fuel that is non-toxic, non-explosive, virtually no evaporation, high BTU content, scalable, sustainable, versatile for ground, sea and air, ...

Try to convince someone to run CNG to power their airplane or cargo ship?
ulrich krauskopf
ulrich krauskopf
July 24, 2012
etc green i response to your comments on cng i point to Europe where they enjoy 4 generation cng vehicles which drive wonderfully and a perfect distribution net were every gas station has at least one pump for cng.

the dangers you refer to are overblown as new tank technology makes them at least as safe as gasoline/diesel tanks.

i do not know about your production statistics but they seem to contradict just about everything i heard otherwise. i grant you fracking is not yet perfected, but will improve as part of the process.

again i stated that i believe in "all of the above". the infrastructure is not as complicated and expensive as europe proves and it makes sense to use cng, even if only to buy you time to develop bio mass sources.
Steve Frazer
Steve Frazer
July 24, 2012
@Cliff - I will not recycle several million electrons to revisit our past volleys regarding 2nd generation feedstock sourced biodiesel, but for new readers...

Your statements are simply uninformed and non-sensical - particularly the need for petroleum to make biodiesel. The definition of 2nd gen feedstock includes that it does not compete with food crops. The use of water for the growing of 2nd gen feedstock is a standard model for agricultural hydrology. Our trees use 1/3rd the water volume of alfalfa.

There are a long list of businesses that have failed in the renewable energy industry though we are in our 5th year of business and we are growing.

The energy density of biodiesel is equivalent to petrodiesel, though due to the higher lubricity of biodiesel, engines will typically last 20% longer running biodiesel over running petrodiesel.

We have no desire to make "true diesel" from biodiesel. We need to migrate engine technology to match our biodiesel products. We are currently working with 2 top engineering facilities to make jet fuel from our bio-oils for reference.

Again, one might believe you to be a lobbyist for some petroleum firm based on the vigor you have against the only scalable, environmentally friendly, economically viable and truly sustainable replacement we have for petroleum.

Join the Migration - http://etcgreen.com U.S. Migration
Cliff Claven
Cliff Claven
July 24, 2012
Biodiesel is, unfortunately, not the answer. It offers higher competition with food and human health than ethanol because of its extraordinary water demand. After experimenting with multiple feedstocks around the world, the global average for water required to make a liter of biodiesel is 14,000 L of water for soybean or rapeseed, and 20,000 L for jatropha. This is compared to 2,600 L for corn ethanol, and less than 5 liters for petroleum diesel. Furthermore, biodiesel is an ester, not a hydrocarbon, and has very different chemical and fuel properties than true diesel. It requires additional processing including hydrotreatment (adding hydrogen from fossil fuel) in order to make it into a 'drop-in' replacement for jet fuel or true diesel fuel. When that processing is added, the output fuel contains less energy than the energy put into it in the form of fertilizer, pesticides, herbicides, farm machinery fuel, and processing. The truth is that all crop-based biofuels are parasites of fossil fuel energy and, for that reason, can never be cheaper than oil. Their price will track up and down with the price of oil, and they are additionally subject to the volatility of international agricultural markets and the fortunes of the weather (record midwest drought in progress I type). Amyris, one of the most ambitious biofuel start-ups, just abandoned its signature line of biodiesel fuels because it couldn't get the price below $29 a gallon and was still losing money. Water footprint data here (Gerbens-Leenes, W., A. Y. Hoekstra, and T. H. van der Meer. 'The Water Footprint of Bioenergy.' Proceedings of the National Academy of Sciences 106, no. 25 (June 3, 2009): 10219–10223. http://www.pnas.org/cgi/doi/10.1073/pnas.0812619106 ).
Steve Frazer
Steve Frazer
July 24, 2012
@Urlich - last response...

One other point regarding CNG - we ran a use model based on known reserves and if the US were to migrate even 50% of vehicles to CNG, that new demand would take the supply time-line below 50 years. This model was conservative for the number of coal plants that will likely be replaced with natural gas plants.

Please help me understand why we should build a multi-$Trillion infrastructure for a CNG transportation product life cycle of less than 50 years? Natural gas is a fossil fuel with a finite volume.

We must think of sustainability as our primary target. Henry Ford and Rudolf Diesel both did when visualizing the future of transportation. We have veered off the path more than a bit with petroleum.

Join the Migration - http://etcgreen.com U.S. Migration
Steve Frazer
Steve Frazer
July 24, 2012
@Ulrich - Also

Please research Dr. Colin Campbell (Ph.D., Oxford Geologist - Energy Adviser to the IMF and dozens of nations - his long and celebrated career virtually defined petroleum exploration). One interviewer mentioned the challenge of food production per the rising cost of petroleum to feed the current 7 billion world population as it grows to 9 billion. Dr. Campbell's response was to state that his projection was a total world population of 3.5 billion by the end of this century. The interviewer was dumb founded. How does a current 3.5 billion population mass cease to exist in 80 some-odd years? Resources wars, famine, natural disasters, ...

Dr. Campbell writes: Despite the uncertainties of detail, it is now evident that the world faces the dawn of the Second Half of the Age of Oil, when this critical commodity, which plays such a fundamental part in the modern economy, heads into decline due to natural depletion. A debate rages over the precise date of peak, but this rather misses the point, when what matters — and matters greatly — is the vision of the long remorseless decline that comes into sight on the other side of it. The transition to decline threatens to be a time of great international tension. Petroleum Man will be virtually extinct this Century, and Homo sapiens faces a major challenge in adapting to his loss.

By most estimates, cheap petroleum temporarily increased the human carrying capacity of this planet by some factor. We have seen reviews suggesting a range factor of 2 to 20. One fact is clear - more land for agriculture will not be necessary as you suggest.

2nd Generation Feedstock for biodiesel works today.
Steve Frazer
Steve Frazer
July 24, 2012
@ulrich - Actually, we have to disagree on several of your response points.

CNG requires high maintenance compressors, a multi-$Trillion distribution system, serious environmental impact for extraction (fracking) and is not only the most volatile (unstable and explosive) transportation fuel in use today, but also has the most volatile price history of any energy source over the past 10 years. CNG is a fossil fuel with a finite volume available. The use of CNG competes with utility scale electrical production and massive in-home use. It has little future for achieving large scale transportation production status. [2010 - $75 barrel equiv.; 2008 - $340 barrel equiv.; 2006 - $225 barrel equiv.]

Then there is the poor BTU factor of CNG...

Fuel Type BTU Per U.S. Gallon/Equiv.

Petrodiesel (Ultra-low Sulfur) 129,800
Biodiesel (B20) (sourced from plant oil) 128,500
Biodiesel (B100 + additives - plant oil) 126,000
Biodiesel (B100) (sourced from plant oil) 119,216
Compressed Natural Gas (CNG) 87,600

Our research on 10 CNG conversion companies showed a common thread; All of their contracts required that the converted vehicle never be placed in an enclosed structure (such as a garage). Also, the fleet managers of CNG vehicles we interviewed are now filling the tanks in the wee hours of the morning rather than when the vehicles come in at the end of the day to mitigate loss from leaks. One of those fleets is Southwest Gas.

Biodiesel from 2nd generation feedstock is the only scalable, environmentally friendly, economically viable and truly sustainable solution we have to replace petroleum.

In the US, we need to eliminate the 58 million acres of corn for ethanol and the 1st generation soy, canola and switch grass for biodiesel and focus on 2nd generation feedstock only.
ulrich krauskopf
ulrich krauskopf
July 24, 2012
in response to etc green Bio Diesel is certainly a great way forward. i am not a friend of pursuing only one avenue; i am more an "all of the above" supporter. for transport diesel and cng is a great source for fuel. to follow chris' argument, there are technologies out there extracting hydro carbons from all sorts of waste. one deserves mentionig; Syngas from super heated steam treatment of waste. Syngas can be used directly in a powerplant or be distilled into Buthanol, Ethanol or Methanol.

using feedstock and/or wasting arrable land should be avoided as it sooner than later will conflict with other poulation needs.
Steve Frazer
Steve Frazer
July 24, 2012
We seem to have established a very small group of interested parties commenting on these biofuel articles. Makes me wonder how many (or few) are reading them without comment. Cliff suggests the EROI of ethanol is 1.25. Certainly this stat is in the ballpark though a key factor +/- is the source of the energy used for the processing. Virtually all U.S. plants use natural gas - though we use concentrated solar for methanol production. We actively lobby against the production of ethanol in the U.S. and only produce methanol to produce our 2nd generation feedstock sourced biodiesel. Obviously, this article is focused on biodiesel from 2nd generation feedstock and recycled cooking oil for military use. Within about 20 years, biodiesel will be the primary transportation fuel on the planet. 2nd generation feedstock sourced biodiesel is the only environmentally friendly, scalable, economically viable and totally sustainable replacement for petroleum we have on the table today. The caveat and strong catalyst for the Migration, is that to take advantage of biodiesel today and in the future, you have to be running a diesel powered vehicle. Are you driving your last gasoline powered car? Join the Migration - http://etcgreen.com U.S. Migration
ulrich krauskopf
ulrich krauskopf
July 21, 2012
To respond to Anonymous, how strange that anyone disagreeing with your opinion is by implication accused of low intellect, low character and low integrity.
Let's not close our minds to advances in technology and you hopefully keep the open mind you expect from others.
Cliff Claven
Cliff Claven
July 21, 2012
Hydrogen is the principle energy carrier in all our fuels. To cut through all the myths and misinformation, all we need to do is follow the hydrogen. All the hydrogen in conventional liquid fuels comes from the ground in the source petroleum. Some of it is consumed along the way to pay the costs of production, but for every liter or BTU consumed, between 8 and 24 make it into the fuel tank. The energy return on investment (EROI) for gasoline and diesel have oscillated between 8:1 and 24:1 since 1920. EROI is a key metric that essentially describes how much our primary energy sources can contribute to the health and wealth of our nation. Biofuels, on the other hand, require hydrogen to be added at multiple steps: fertilizer (pure anhydrous ammonia (NH3) is the fertilizer of choice for corn), petroleum-derived herbicides and pesticides, and hydrotreating, which is essentially injecting pure hydrogen to up-convert alcohols and esters (bioethanol and biodiesel) into true hydrocarbon drop-in fuels. Where does all this hydrogen come from? Petroleum! In addition, biofuels have very steep processing costs that fossil fuels don't, including cultivation, irrigation water, huge algae pond water circulation and centrifuging, kraft process cellulose separation from lignin, truckloads of genetically engineered enzymes, distillation of 96% water content, etc. These energy costs can either be paid by the product fuel or by additional injects of petroleum, but either way, the EROI is further reduced. Ethanol EROI is 1.25:1. Cellulosic ethanol EROI is 3-5 times worse, which is why it is always '5 years away.' There is probably not a single politician or government agency head, including Dr. Chu, who is truly informed about hydrogen mass and energy balance in biofuels, and that is why billions of taxpayer dollars have been squandered on this fiasco in a vain attempt to get drop-in biofuels below outrageous prices like $26.75 a gallon.
Cliff Claven
Cliff Claven
July 21, 2012
The now settled consensus after decades of research is that corn ethanol has an energy return on investment (EROI) of 1.25. The ethanol is break-even and returns 1.0, and the additional .25 is in generous energy credits given for co-products--principally distillers dry grains and solubles (DDGS). That means that all the billions of dollars spent on corn ethanol subsidies and loan guarantees and tax breaks have been contributing only toward reducing America's shameful and critical dependency upon foreign DDGS, which, of course, doesn't exist. BTW, the suckers with E85 vehicles are paying 30 cents more a gallon for gas than the price for premium when the MPG corrections are made, even with all the subsidies ('AAA's Daily Fuel Gauge Report.' American Automobile Association, July 19, 2012. http://fuelgaugereport.opisnet.com/index.asp ). Tell me again how any of this fiasco is helping America?
ANONYMOUS
July 20, 2012
As a farmer, I consider ethanol stillage a premium animal feed supplement. As for the mass balance and percentage utilization, you are way off both in your assumptions and your conclusions. Rather than fall prey to easy nay-saying, why not do some very basic reading to learn the truth about this subject? You could then live a fuller life in light of those facts, and share your knowledge with others. It takes a person of intellect, high moral character and integrity to do so. Are you such a person?
ulrich krauskopf
ulrich krauskopf
July 20, 2012
if 40% by weight of corn is shipped to ethano plants and 1/3rd is used for ethanol, 1/3rd is shipped as animal food what happens to the 3/3rd?

by the way, the return mash from ethanol plant, conventionally dried in a thermal process is at best a lousy popcorn, lost lots of its nutrients and only serves as low end animal feed because animals cannot complain. far more of this stuff is produced than you can honesty blend in. either dry it intelligently without burning it or losing nutrients or admit that a huge amount of waste is produced. successful countries, like brazil take sugar cane bagasse others take switch grass an plants which can grow in non conventionally arrable lands. the idea is good, the process and follow through is the disaster.

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Jim Lane

Jim Lane

Editor & publisher of Biofuels Digest, the most widely-read biofuels daily and newsletter. The Digest covers producer news, research, policy, policymakers, conferences, fleets and financial news. It is home to the Biofuels Digest Index™,...
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