november 2015 biomass magazine

Delayed DepartureTitanic Targets, Petty Progress forMilitary Biofuel UsePage 30

www.biomassmagazine.com

November 2015

Plus:Army Biopower Projects Proceed2

And:Vermont National Guard Wood Heat TacticsPage 20

A S T E C

FINAL PELLET MILL MAG BKCOV.indd 1 4/25/14 11:40 AM

NOVEMBER 2015 | BIOMASS MAGAZINE 3

INSIDE¦

NOVEMBER 2015 | VOLUME 9 | ISSUE 11

Subscriptions Biomass Magazine is free of charge to everyone with the exception of a shipping and handling charge of $49.95 for anyone outside the United States. To subscribe, visit www.BiomassMagazine.com or you can send your mailing address and payment (checks made out to BBI International) to Biomass Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You can also fax a subscription form to 701-746-5367. Back Issues & Reprints Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at 701-746-8385 or [email protected]. Advertising Biomass Magazine provides a specifi c topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To fi nd out more about Biomass Magazine advertising opportunities, please contact us at 701-746-8385 or [email protected]. Letters to the Editor We welcome letters to the editor. Send to Biomass Magazine Letters to the Managing Editor, 308 2nd Ave. N., Suite 304, Grand Forks, ND 58203 or email to [email protected]. Please include your name, address and phone number. Letters may be edited for clarity and/or space.

POWER 10 NEWS

11 COLUMNRecapping National Bioenergy DayBy Bob Cleaves

12 DEPARTMENTArmy Green: More Than Just a ColorThe Army is moving ahead with several bioenergy projects that will guard against grid vulnerability and help meet renewable goals.By Ron Kotrba

06 EDITOR’S NOTEGreat Green Fleet AdriftBy Tim Portz

08 BUSINESS BRIEFS

34 MARKETPLACE

12

ON THE COVER: A U.S. Navy, Naval Air Systems Command F/A-18 tests fuel produced by Gevo Inc.

PHOTO: U.S. DEPARTMENT OF NAVY

PELLETS 14 NEWS

15 COLUMNVolkswagen Scandal and Wood Heat TechnologyBy John Ackerly

16 DEPARTMENT Surveying a Changing LandscapeTopics at the 2015 Exporting Pellets Conference were in stark contrast to last year’s market forecast-focused event.By Tim Portz

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BIOGAS 24 NEWS

25 COLUMNFocusing on 3 Prominent EffortsBy Bernard Sheff

26 DEPARTMENTBringing AD to Africa Tropical Power is seizing importunities to launch biogas-based electricity projects in Africa.By Keith Loria

ADVANCED BIOFUELS & CHEMICALS 28 NEWS

29 COLUMNBuilding Sustainable Cellulosic Biofuel PortfoliosBy Rajdeep Golecha

30 DEPARTMENTMission IncompleteThe U.S. DOD has set lofty renewable fuel goals, but there's been much more talk than action.By Katie Fletcher

NOVEMBER 2015 | VOLUME 9 | ISSUE 11

THERMAL18 NEWS

19 COLUMNBiomass Regains Congressional AllyBy Joel Stronberg

20 DEPARTMENTOperation Biomass HeatAlready experienced in wood heat technology, the Vermont Army National Guard recently installed new pellet boiler system at its Regional Readiness Training Center at Norwich University.By Anna Simet

INSIDE¦ADVERTISER INDEX¦

Biomass Magazine: (USPS No. 5336) November 2015, Vol. 9, Issue 11. Biomass Magazine is published monthly by BBI International. Principal Offi ce: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offi ces. POSTMASTER: Send address changes to Biomass Magazine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203.

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20

2016 International Biomass Conference & Expo 36

2016 Fuel Ethanol Workshop & Expo 22

ACT Bioenergy LLC 33

AFS Energy Systems 10

Amandus Kahl Gmbh & Co. KG 28

Andritz Feed & Biofuel A/S 18

Astec, Inc. 2

BBI Project Development 35

CPM Global Biomass Group 23

DI PIÙ 8

Javo International BV 24

KEITH Manufacturing Company 9

Les Aciers J.P. Inc 14

West Salem Machinery Co. 32

6 BIOMASS MAGAZINE | NOVEMBER 2015

Great Green Fleet Adrift

Three years ago, in the months leading up to the publication of Biomass Magazine’s first issue focused on the military’s use of biomass-derived energy products, oil prices were enjoying a near three-year run of $100-plus a barrel. The previous summer, dur-ing its massive RIMPAC exercise, the Navy utilized a 50/50 blend of biofuels to power

some of the branch’s most recognizable ships, including the USS Nimitz. Carrier-based F-18s screamed off flight decks while burning a renewable jet fuel blend, and Advanced Biofuels Association President Mike McAdams, who watched it all unfold in person, understandably assumed that the mili-tary’s transition to biofuels was well underway.

Fast forward to July of this year, when the U.S. Government Account-ability Office published a report detailing the U.S. Department of Defense’s investments in and use of biofuels. The report’s findings were a major disap-pointment for the industry, and highlight the difficulties next-generation liquid fuels will have while attempting to unseat the fossil fuel incumbents that are well-entrenched in the military. We covered this story online this summer, and in this issue, associate editor Katie Fletcher digs in further. Her feature, “Mis-sion Incomplete,” on page 30, clearly articulates the stark differences between the stated goals of the various branches of the military and the results so far. McAdams couldn’t have known it in the summer of 2012, but the fuel con-sumed during that RIMPAC exercise would make up nearly 25 percent of the biofuels used since 2007. Since then, just 2 million gallons of biofuels have been purchased and used by the military, or .001 percent of the overall fuel total. Biofuel use in the military right now is, literally, a drop in the defense fuel bucket. In her story, Fletcher reports that for the Navy to achieve their stated renewables goals, they’ll need to use over 300 million gallons of biofuels by 2020.

Clearly, these early results are not what the industry had hoped for when these goals were set. Low oil prices have only served to compound the chal-lenges for biofuel producers, as there is real congressional pressure on the military to purchase biofuels only if they can compete with the costs of their fossil-derived equivalents. At $50 a barrel, this presents the industry with a very tall order. As Fletcher reports, the enormity of the military’s fuel usage is still very much on the industry’s radar, but the exuberance of 2012-‘13 has largely been replaced with the more measured tone offered to her by Gevo Inc. CEO Patrick Gruber, who offered simply, “It’s a long-term game.”

TIM PORTZVICE PRESIDENT OF CONTENT & EXECUTIVE [email protected]

¦EDITOR’S NOTE

EDITORIAL

PRESIDENT & EDITOR IN CHIEFTom Bryan [email protected]

VICE PRESIDENT OF CONTENT & EXECUTIVE EDITOR

Tim Portz [email protected]

MANAGING EDITOR Anna Simet [email protected]

SENIOR EDITOR Ron Kotrba [email protected]

NEWS EDITORErin Voegele [email protected]

ASSOCIATE EDITORKatie Fletcher [email protected]

COPY EDITOR Jan Tellmann [email protected]

ARTART DIRECTOR

Jaci Satterlund [email protected]

GRAPHIC DESIGNERRaquel Boushee [email protected]

PUBLISHING & SALESCHAIRMAN

Mike Bryan [email protected]

CEOJoe Bryan [email protected]

VICE PRESIDENT OF OPERATIONSMatthew Spoor [email protected]

SALES & MARKETING DIRECTORJohn Nelson [email protected]

BUSINESS DEVELOPMENT DIRECTOR Howard Brockhouse [email protected]

SENIOR ACCOUNT MANAGERChip Shereck [email protected]

ACCOUNT MANAGERJeff Hogan [email protected]

CIRCULATION MANAGER Jessica Beaudry [email protected]

TRAFFIC & MARKETING COORDINATORMarla DeFoe [email protected]

EDITORIAL BOARD MEMBERS

Chris Sharron, West Oregon Wood Products

Amanda Bilek, Great Plains Institute

Stacy Cook, Koda Energy

Ben Anderson, University of Iowa

Justin Price, Evergreen Engineering

Adam Sherman, Biomass Energy Resource Center

INDUSTRY EVENTS¦

tcbiomass2015NOVEMBER 2-5, 2015Westin Chicago River NorthChicago, Illinoistcbiomass2015—the 4th international conference on thermochemical (TC) biomass conversion science—will bring together the world’s experts in biomass gasification, pretreatment, pyrolysis, and upgrading to explore progress in the bioenergy. Taking “Technology for the Bioeconomy” as the overall theme, tcbiomass2015 participants will be at the center of international collaboration, hearing the latest research, development, and deployment results for thermal biomass conversion technologies and systems to help grow the bioeconomy and reach a sustainable, more diverse energy future.847-768-0500 | http://www.gastechnology.org/tcbiomass

International Biomass Conference & ExpoAPRIL 11-14, 2016Charlotte Convention Center Charlotte, North CarolinaOrganized by BBI International and produced by Biomass Magazine, this event brings current and future producers of bioenergy and biobased products together with waste generators, energy crop growers, municipal leaders, utility executives, technology pro-viders, equipment manufacturers, project developers, investors and policy makers. It’s a true one-stop shop—the world’s premier educational and networking junction for all biomass industries.866-746-8385 | www.biomassconference.com

International Fuel Ethanol Workshop & ExpoJUNE 20-23, 2016Wisconsin CenterMilwaukee, WisconsinThe FEW provides the global ethanol industry with cutting-edge content and unparal-leled networking opportunities in a dynamic business-to-business environment. The FEW is the largest, longest running ethanol conference in the world—and the only event powered by Ethanol Producer Magazine.866-746-8385 | www.fuelethanolworkshop.com

Canadian Bioeconomy ConferenceNOVEMBER 30-DECEMBER 2, 2015Sheraton Vancouver Wall CentreVancouver, British ColumbiaThe second annual Canadian Bioeconomy Conference is the latest from over a de-cade of renewable fuels events hosted by the CRFA. It brings together industry leaders in North America's bioeconomy, policy makers, elected officials and true innovators across the bioeconomy. 613-594-5528 | http://greenfuels.org


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PEOPLE, PRODUCTS & PARTNERSHIPS

Business Briefs

Porter Joins Uzelac Industries Uzelac Industries has appointed Mike Porter sales manager of

biomass. Porter will lead a team of regional sales people establish-ing new relationships and business partners throughout the U.S. and Canada. Porter has extensive experience in the biomass and wood drying industry having served as the director of new busi-ness for Firefly North America, as well as sales coordinator and sales manager for M-E-C Co.

Enerkem appoints Shaw as CFO Enerkem Inc. has announced that Robert Shaw has joined its

executive team as senior vice president and chief financial of-ficer. Throughout his career, Shaw held executive roles in busi-nesses ranging from oil and gas, energy, industrial manufacturing, industrial gases, and consumer products and services. He has held financial and operating executive roles in both public and private companies, and was most recently CFO of Southwest Oilfield Products, a privately held oilfield equipment manufacturer. Prior to Southwest, he was treasurer at Transocean and at Air Liquide. His experience covers treasury, investor relations, financial planning and analysis, opera-tional finance, risk management as well as mergers and acquisitions.

Rager joins SCS EngineersSCS Engineers has announced that Eric Rager is joining the

SCS team as the western regional manager of the field service construction division. Rager comes to SCS from Innovative Construction Solutions, where, as a senior project manager and estimator, he handled business development, estimating, project management, crew scheduling and resource allocation. For SCS, Rager will be managing complex environmental construction and remediation projects.

Vertimass, Technip partner to scale ORNL technology Vertimass LLC recently announced the company has chosen Technip to provide

pilot testing, scale-up and initial plant design for its novel technology for converting alcohol to renewable gasoline, diesel and jet fuel blend stocks that are compatible with the current transportation fuel infrastructure. The work will be done at the Technip’s research center in Weymouth, Massachusetts, and process technology center in Boston, Massachusetts. Vertimass technology originated at Oak Ridge National Laboratory, where scientists discovered novel catalysts that convert a wide range of alcohols into various hydrocarbon blend stocks, offering a new pathway for biomass-derived renew-able fuels.

NESTEC adds Elsman to aftermarket team NESTEC Inc. has announced Ray Elsman will join the company’s aftermarket

team. Elsman adds another 34 years of expert experience in the application, design, and installation of air emission control and energy conservation systems, increasing NESTEC’s unprecedented 300-plus years of staff experience. Elsman joins the NEST-EC team from Lundberg located in Bellevue, Washington, with extensive knowledge of the wood industry applications.

Porter

Shaw

Rager


Dreesen named Gevo board chair Ruth Dreessen has been named Gevo

Inc.’s chairman of the board, replacing Shai Weiss, who has stepped down. Dreessen has served as the audit committee chairman since 2012, and will remain a member of the audit committee. Dreessen has been involved in the chemicals industry for over 25 years and has served on the board of several public compa-nies including Axiall Corp. (previously Georgia Gulf) and Westlake Chemical. She was also chief financial officer at TPC Group Inc. and Westlake Chemical, and spent many years at JPMorgan Securi-ties in the global chemicals investment banking group. She is cur-rently on the board of Targa Resource Partners LP and a managing director of Lion Chemical Capital, a private equity firm focused on the chemical industry.

GFBiochemicals hires Krapivin, Ribezzo, Engendahl

GFBiochemicals has appointed three new senior team members as the compa-ny gains momentum, produc-ing levulinic acid at commer-cial scale. Alexander Krapivin and Daniela Ribezzo both join as global business development managers. Krapivin was previ-ously at Dow Corning and has over 15 years of experience in B2B for the specialty chemicals industry. Ribezzo has worked in com-mercial departments for more than 11 years at leading chemical and engineering companies, most recently at Polyscope. Bart Engendahl brings his R&D expertise as senior scientist to the company’s tech-nology and application development. Engendahl joins from DSM, where he developed processes for polymer intermediates derived from biomass, resulting in several patents. He has also co-authored two publications on the hydrogenation of levulinic acid.

PHYCO2, MSU develop algae tech to capture CO2Michigan State University and PHYCO2 have entered into a

partnership to develop algae technologies produced from PHY-CO2’s patented concept that promotes algae growth and sequesters carbon dioxide from power plant emissions. Under the collabora-tive research agreement, MSU and PHYCO2 will investigate the performance of PHYCO2’s algae growth and carbon dioxide absorption technology, as well as algae processing technologies. PHYCO2 will test its algae photo bioreactor, technology that continuously captures significant amounts of CO2 and grows algae with LED light, at MSU’s T.B. Simon Power Plant.

BUSINESS BRIEFS¦

Ribezzo Engendahl

Dreessen


The UK Green Investment Bank plc and John Laing Group plc have committed £48 million ($74.4 million) of equity to a new £138 million renew-able energy facility in North East Eng-land, developed by Estover Energy.

The biomass combined-heat-and-power (CHP) plant in Cramlington, Northumberland, will generate 213 GWh of renewable electricity annually, enough to power 52,000 homes. It is also expected to reduce greenhouse gas emissions by circa 56 kt CO2e annually, the equivalent of taking 25,000 cars off the road during its lifetime.

GIB will make a £21m investment in the project, with John Laing investing

in a stake worth £27 million. Barclays will provide the remainder of the fund-ing as debt, 60 percent of which will be guaranteed by the Danish export credit agency EKF.

Construction of the plant will be undertaken by a consortium of Bur-meister & Wain Scandinavian Contrac-tors A/S, the consortium leader, and Burmeister & Wain Energy A/S. BWSC will operate the plant upon completion under a 12-year operations and main-tenance contract. Up to 25 permanent positions will be maintained at the oper-ational facility, with further jobs created within the project supply chain.

PowerNews

U.S. Senate Democrats have released a tax reform proposal that aims to address future U.S. energy challenges.

The American Innovation Act of 2015 proposes programs focused on renewing economic growth in the energy sector, modernizing infra-structure, cutting carbon pollution and waste, investing in clean energy, and supporting research and development It also proposes to repeal tax incentives currently granted to major integrated oil and gas companies.

Among its many proposed programs are a distributed energy loan program that would help states, tribes, utilities, and universities deploy projects that recover or produce useful thermal energy from waste heat or renewable thermal energy sources; a technical assistance grant program would provide aid in identifying, evaluating, planning and de-

signing distributed energy systems at for-profit and nonprofit entities; a program offering that would authorize the federal government to enter into up to 30-year contracts for the acquisition of renewable energy or energy from cogeneration facilities; and a DOE loan program reform section would allow state financing entities to obtain loan guarantees through the DOE loan programs,

Another section extends current alternative fuel tax credits—in-cluding natural gas and propane, hydrogen, cellulosic biofuels, and bio-diesel—to 10 years for facilities that are placed in service on or after Jan. 1, 2018. Facilities placed in service prior to Jan. 1, 2018 would be able to qualify for a 10-year credit stream beginning Jan. 1, 2018.

Green Investment Bank funds England biomass CHP

Senate Democrats release national energy bill


Oct. 21 marked the third annual National Bio-energy Day. This year’s participation increased 30 percent over last year, with more than 60 organizations demonstrating their involvement with bioenergy. On what has really become the “North American Bioen-ergy Day,” top Canadian officials joined with a lung health nongovernmental organization to publicly state support for our industry.

With continued support from the U.S. Forest Service, we produced a video on bioenergy, focusing on its role in the thriving forest products industry in northern Maine, as well as its role in keeping forests healthy.

We are also pleased this year to welcome a new sponsor, the U.S. DOE’s Bioenergy Technologies Of-fice, and to maintain the sponsorship of our previous supporters: Plum Creek, Pellet Fuels Institute, Bio-mass Thermal Energy Council, U.S. Industrial Pellet Association and Biomass Magazine. With the addition of the DOE, National Bioenergy Day now counts cellulosic biofuels into the mix of bioenergy types involved in the day.

One of the biggest developments this year was the creation of the Congressional Biomass Caucus, which held a kickoff event on National Bioenergy Day. Reps. Ann Kuster, D-N.H., and Bruce Wster-man, R-Ar., are serving as co-chairs of the Biomass Caucus, whose aim is to raise awareness on all types of bioenergy. The kickoff panel included representatives of biomass power, export and domestic pellets, the U.S. Forest Service and the Environmental and Energy Study Institute. So far, the caucus counts 10 members, and we are looking forward to encouraging many more to join.

All events are noteworthy, and I encourage read-ers to look at www.bioenergyday.com to see the news generated across the country on National Bioenergy Day. I also want to highlight a few of the events held that day:

• Louisiana State University held a day-long conference on bioenergy. The USFS’s Dan Len gave the keynote address on wood supply in the Southeast. Other speakers explored opportunities and challenges for cofiring, exporting pellets, landowners and attract-ing more bioenergy companies to Louisiana.

• The state of Kentucky focused on small-scale combined heat and power initiatives.

• Biomass facilities held tours in California, Min-nesota, Michigan, New York, Maine, North Carolina and Ontario, Canada.

• District and building pellet heat demonstrations were held across the Northeast.

• Washington State University’s Advanced Hard-wood Biofuels Northwest teamed up with the USDA to hold a “webinar-a-thon,” a weeklong series of webi-nars looking at various aspects of biofuels production.

National Bioenergy Day continues to grow, and we look forward to this opportunity every year to help all in bioenergy engage more closely with their com-munities to show them what bioenergy is all about. Visit www.bioenergyday.com for more information.

Author: Bob CleavesPresident, Biomass Power Association

[email protected]

Recapping National Bioenergy Day

POWER¦

BY BOB CLEAVES


Army Green: More Than Just a ColorThe U.S. Army relies on renewable energy and biomass power to become more energy-secure and resilient, while meeting its congressional mandates. BY RON KOTRBA

The U.S. Department of Defense is one of the largest single users of energy in the world and, as such, operates under congressional mandates and branch-

specific goals to reduce consumption and in-crease renewables, including the Energy Policy Act of 2005 and the 2007 National Defense Authorization Act. The NDAA requires the defense department to produce or procure 25 percent of all energy from renewables by 2025. A few years ago, the U.S. Army solicited bids for $7 billion in renewable energy con-tracts. In June, the Army published its strategic roadmap to future energy security and sustain-ability. Kathy Ahsing, the director of renew-able energy programs at the Army’s Office of Energy Initiatives, tells Biomass Magazine that the Army views renewable energy as a key component to its energy security and sustain-

ability strategy. “The Army is looking at renew-able energy on our lands to increase resiliency and security for our missions when grid inter-ruptions and outages occur, to ensure we can continue our operations,” she says. Ahsing adds that if the Army focuses on security and resiliency of its installations, then it will be able to achieve the mandates established by Con-gress.

Redstone ArsenalIn October 2014, the U. S. Army Corps

of Engineers, Engineering and Support Cen-ter, Huntsville, Alabama, in coordination with OEI and Redstone Arsenal, released a request for proposals (RFP) for a 25-MW biomass-fueled combined-heat-and-power (CHP) project. Redstone Arsenal is an Army garrison located in the Tennessee Valley in Madison

County, Alabama. The installation has more than 70 tenant organizations including the U.S. Army Materiel Command, U.S. Army Avia-tion and Missile Command, Missile Defense Agency, U.S. Army Space and Missile Defense Command, and NASA Marshall Space Flight Center. According to Terri Stover, public rela-tions specialist with U.S. Army Garrison-Red-stone Arsenal, the base occupies more than 38,000 acres and has 37,000 employees, 1,100 of whom are military (mostly officers) with 20,000 civilians and 16,000 contractors.

Sharon Greshem, program manager for the USACE Renewable Energy Power Purchase Agreement Multiple Award Task Order Contract, oversees the $7 billion bids for renewable energy contracts. She tells Bio-mass Magazine that 94 companies have been awarded base contracts. These include 50 so-

DEPARTMENT

SECURE, SUSTAINABLE ENERGY: ReEnergy Black River LLC, a 60-MW biomass power plant, supplies Fort Drum—home of the U.S. Army’s 10th Mountain Division—with 100 percent of its power needs. PHOTO: REENERGY HOLDINGS LLC

¦POWER


lar, six geothermal, 21 wind and 17 biomass companies.

Gresham says a series of destructive tor-nadoes hit the area in 2011, triggering the CHP project. “Redstone Arsenal was shut down for two or three weeks from the tornadoes,” she says. “If that happened again, the power and steam from the biomass CHP plant would al-low this installation to keep all mission-critical infrastructure operating.” All power and steam produced by the 25-MW CHP plant will be used on the installation and will not be sold to the grid or to Tennessee Valley Authority’s transmission—from where Redstone Arsenal currently gets its power. The average power consumption at Redstone Arsenal is approxi-mately 49 MW, with a peak load of 75 MW and a minimum load of 38 MW. The instal-lation also issued an RFP last year for a large solar project to supplement power to the base.

The Army is still in the process of mak-ing a selection for the CHP project, Gresham says. The Army intends to execute a land-lease agreement and sign a 30-year PPA for the re-newable heat and power at a price no higher than what it currently pays TVA. The contract will also include an escalation rate.

Fort DrumHome to the 10th Mountain Division,

Fort Drum is an Army installation in New York state with 37,000 soldiers and fam-ily members, and almost 4,000 civilians. The base encompasses more than 108,000 acres

in Jefferson and Lewis Counties. Its average electricity load is around 20 MW with peak load at roughly 28 MW. In September 2014, ReEnergy Holdings LLC was awarded a 20-year PPA to supply 100 percent of the instal-lation’s on-site electricity requirements from its 60-MW Black River biomass power plant. Fort Drum remains connected to the utility grid but, as part of the contract, ReEnergy is add-ing a substation intertie from the power plant, located within Fort Drum’s gates, to the base’s north and south substations. The substation intertie connections will allow Fort Drum to maintain mission-critical operations in case a system-wide outage occurs.

ReEnergy owns and operates eight bio-mass power plants in the Northeast with 300 MW of installed capacity. Larry Richardson, CEO, says the company acquired the Black River plant in 2011—then a shuttered coal plant—and 18 months and $35 million later, the converted plant was operational. “While doing the retrofit work and building our sup-ply infrastructure with loggers in the region, we were going through the procurement pro-cess with Army,” Richardson tells Biomass Magazine. ReEnergy’s feedstock, mostly log-ging residues, is certified through the Sustain-able Forestry Initiative.

ReEnergy began delivering 100 percent of Fort Drum’s power Nov. 1, 2014. Richard-son says the two-year-plus award process was challenging. “We learned a lot, so did they,” he says. “It’s one of the first contracts to work

all the way through the process from award through delivery.”

Richardson says the nearly complete in-tertie is a complex engineering project. “We’re targeting mid-October to be delivering behind the meter to the Fort Drum substations,” he says. “In doing so, we’re creating a microgrid.” He says this was the largest renewable contract to date by the Army. “We think it’s truly a mod-el of not only a renewable energy source but a secure energy source that’s inside the fence, capable of providing 100 percent of its energy needs,” Richardson says.

Schofield BarracksAt Schofield Barracks in Hawaii, the

Army is prepared to lease roughly 10 acres to Hawaiian Electric Co. for construction of a 50-MW, multifuel power plant to be owned, operated and maintained by HECO. The plant will utilize six Wärtsilä 34DF engines capable of running on diesel, biodiesel or liquefied natural gas. Instead of executing a PPA, Ahs-ing says, “We are leasing land to them and not entering into a separate PPA with Hawai-ian Electric. We will continue to procure our power from Hawaiian Electric through the ex-isting tariff.” The only arrangement as part of the lease agreement is the base will have first call to power if the grid goes down. Together, Schofield Barracks, Wheeler Army Airfield, and Field Station Kunia require approximately 32 MW of peak power.

Ahsing says the project awaits comple-tion of two important actions before moving forward: Issuance of the final Environmental Impact Statement, and approval by the Hawaii Public Utilities Commission. She says the fi-nal EIS should be issued in late October and a decision from HPUC is expected by this No-vember.

Bob King, president of Pacific Biodiesel Technologies, which owns and operates the 5.5 MMgy Big Island Biodiesel plant in Hawaii, says when the fuel procurement bid process begins, PBT will participate. “They’d like to buy fuel from us,” he says. In October, HPUC approved a two-year contract for PBT to sup-ply up to 3 MMgy of biodiesel to HECO for power generation on Oahu. King says, “We need these long-term commitments to get other renewables going.”

Author: Ron KotrbaSenior Editor, Biomass Magazine

[email protected]

POWER¦

GREEN BIDDING: Col. Robert Ruch welcomes some 40 biomass industry representatives to a preproposal meeting for Redstone Arsenal's renewable combined-heat-and-power project in 2014. Huntsville Center is managing the acquisition for the Office of Energy Initiatives project. PHOTO: JULIA BOBICK

PelletNews

The Sustainable Biomass Partnership announced it has approved NEPCon’s application to become an SBP certification body, the SBP’s first full approval. NEPCon, a Danish nonprofit, conducts certification audits for numerous forestry certification schemes including the Forest Stewardship Council, SAN/Rainforest Alliance and the PEFC Forest Management Standard.

The SBP was formed by industry stakeholders in 2013 to help pro-ducers of biomass inputs demonstrate compliance with a growing ar-ray of country-specific certification requirements. “NEPCon has been through a rigorous approval process, which amongst other things has included the witness by SBP assessors of a NEPCon audit of a biomass producer and SBP’s approval of NEPCon’s audit team through training and examination,” said Peter Wilson, executive director of the SBP.

NEPCon leveraged its current status as an accredited certification body for both FSC and PEFC forest management schemes to gain SBP approval. To do so, certification bodies must already be accredited to provide FSC or PEFC certification “We decided to engage in SBP cer-tification because the market for woody biomass is growing fast," said

Peter Feilberg, NEPCon executive director. "The impact of this trend on the world’s forests depends on how the biomass is harvested. SBP is about ensuring that it is done in the right way."

In order to gain SBP approval, NEPCon had to demonstrate an ability to implement the SBP requirements and completed an SBP-ap-proved training course. NEPCon will be monitored on an ongoing ba-sis and the audits they perform for biomass producers, including pellet mills, will be reviewed by the SBP.

Lignetics Inc. has announced the acquisition of the assets of GF Funding LLC (whose facility was formerly known as Geneva Wood Fuels), expanding its footprint into Maine and upper New England. Lignetics is the largest residential wood pellet manufacturing company in the U.S., with a production capacity of approximately 550,000 tons of wood pellets per year. The company is the only pellet manufacturing company that has wood pellet manufacturing plants on both the east and west coasts in six plant locations in the states of Maine, Oregon, Idaho, West Virginia and Virginia.

Lignetics acquired the wood pellet manufacturing facility of GF Funding LLC, based in Strong, Maine, which produces hardwood pellet fuel for residential and commercial use. The facility produces Maine's Choice and Geneva Wood Pellets brands of residential hardwood pel-let fuel which can be found at independent retailers and select chains throughout the Northeast.

NEPCon earns first Sustainable Biomass Partnership approval

Lignetics acquires Geneva Wood Fuels

SBP created, continues work of former Initiative of Wood Pellet Buyers

2014 March: Biomass Assurance Framework Consultation Draft published with invitation for interested parties to commentApril: Close of BAF consultation period.September: Publication of BAF Response to Consultation and Biomass Assurance Framework Standards version 0.0.September to December: Further refinement and testing of BAF Standards version 0.0 and engagement with industry parties.

2013

Q1: Launch of the SBP Framework version 1.0, followed by 18- to 24-month of learning by doingto inform development of the SBP Framework version 2.0.

2015

Continuation and conclusion of the development of the SBP Framework version 2.0.

2016

Sustainable Biomass Partnership Timeline


The Volkswagen scandal should be a wake-up call to everyone who makes appliances that have to be tested for emissions and effi ciency. The new reality is that independent, real-world testing is getting cheaper and more common. Passing a government-mandated test is one thing. Standing up to scrutiny by others who test is another.

Pellet stove sales rose 41 percent last year in the U.S. and are likely to outsell wood stoves in coming years. In much of Europe, they already are. If we are going to promote this technology as a more widespread alternative to fossil fuels, we need to be confi dent that their emissions and effi ciency values can hold up once they leave the lab. I think about this a lot because my organization just began independently testing pellet stoves in simulated real-world conditions. We wanted to fi nd out if pellet stoves performed similarly in the real world as they do in the lab.

Our testing showed that after over a month of intensive use, most of the stoves produced very similar exhaust gases as they did in the lab. This result is radically different than what happens with wood stoves, as manufacturers can coax impressive numbers out of a stoves in labs behind closed doors, numbers that consumers can rarely get in their homes. However, to be fair, wood stove testing is not supposed to approximate emissions in the real world. The artifi cial lab testing conditions have long been approved by the EPA as a way to test stoves fairly against one another.

Pellet stoves and their larger cousins, pellet boilers, offer society a cleaner, more controlled combustion that extends beyond the lab into homes, businesses and institutions. Like cars, they are increasingly run by software that can be period-ically updated or updated instantly online. Moreover, com-panies are not allowed to introduce changes in pellet stoves without fi rst retesting them in an approved lab and recertify-ing, to avoid improving some aspect of performance at the cost of emissions.

The temptation by companies to tout their green cre-dentials often gets ahead of how green they actually are. In the case of VW, that temptation led to poor decisions by senior management who may now face criminal charges in addition to billions in fi nes and public shame. Stove manu-facturers need to beware of a credibility gap between com-pany claims and how stoves often perform in the hands of consumers.

Outdoor wood boilers are the main type of wood heat-er that failed this credibility gap and have thwarted govern-ment oversight for many years, in part because regulation was in the hands of an underfunded EPA offi ce that couldn’t afford much independent testing. The EPA took fi ve years to do what should have been done in one or two, allowing tens of thousands of large polluting boilers to be installed in communities year after year.

Change is brewing in the wood stove world that will reduce the huge differences between emissions recorded in the test lab and emissions measured in the real world. A few innovative stove manufacturers are voluntarily starting to test and certify their stoves with cordwood, instead of the two-by-fours the EPA protocol required during the past quarter century. The EPA may now be more willing to recognize those companies and steer consumers toward them. But for this to succeed in the short term, the EPA and state agencies will need to speak out more loudly about new stoves that certify with cordwood. If the EPA and states promote these stoves, it will help build consumer demand and put pressure on more companies to certify with cordwood.

Closing this credibility gap requires more than just designing and certifying with cordwood. Now coming to market are stoves that use sensors and microprocessors to deliver the exact amount of air needed to the fi rebox at each stage of combustion. Quadrafi re, a company in Washington, just introduced an automated line of stoves. A team of Uni-versity of Maryland engineering students who won awards at the Wood Stove Design Challenge also says it’s bringing a highly advanced stove to market in 2016.

Low-cost mobile testing devices that exposed VW will also be able to keep tabs on various types of wood heat technologies, helping to ensure that all companies play by the same rules. In addition, low-cost sensors will also help engineers make wood and pellet heating cleaner and cleaner. As biomass heating gets cleaner and testing shows a greater consistency between lab and real-world conditions, the tech-nology will gain legitimacy with policymakers so that clean, renewable energy doesn’t just have to mean solar and wind.

Author: John AckerlyPresident, Alliance for Green Heat

[email protected] 301-204-9562

Volkswagen Scandal and Wood Heat Technology

PELLET¦

BY JOHN ACKERLY


Surveying a Changing LandscapeThe fifth annual Exporting Pellets Conference found an industry trying to find certainty and stability as a newly elected conservative government regains power in the United Kingdom.BY TIM PORTZ

In stark contrast to the 2014 event, this year’s Exporting Pellets Conference, produced and hosted by the U.S. In-dustrial Pellet Association in Miami

on Sept. 20-22, dedicated very little time to haggling over differences of opinion around market forecasts. While the event opened with a thorough market analysis of-fered by perennial conference favorite John Bingham of Hawkins Wright, the intense

debate that surrounded forecasts offered last year was noticeably absent. Bingham’s prediction of a 30 million-ton global pel-let market by 2020, a near doubling of the industry’s current size, generated little reac-tion or dispute. Rather, attendees seemed more interested in hearing about the near-term impediments constraining industry growth, including a conservative majority in Parliament, ongoing austerity measures

in European governments and a pitched battle with nongovernmental organizations (NGOs) for a social license to do business.

Sea Change in BritainAfter providing country-by-country

details influencing his forecast, Bingham moved on to a discussion of the changes in the British government and the potential impacts to the wood pellet sector. In May,

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PRODUCER PANEL: The 2015 Exporting Pellets Conference wrapped with a panel discussion moderated by USIPA executive director Seth Ginther. From left to right: Mike Williams, Westervelt; James Roecker, Georgia Biomass; Ginther; Richard Peberdy, Drax; Thomas Meth, Enviva; and Harold Arnold, Fram. PHOTO: TIM PORTZ, BIOMASS MAGAZINE

¦PELLET


the conservative party won its first majority in nearly 20 years, and as a result, are in the driver’s seat for setting energy policy direc-tion. Bingham then outlined some actions the newly installed majority had already taken that while “not aimed at biomass spe-cifically,” will certainly be viewed as slowed momentum. First, the conservatives are taking a very close look at the Levy Con-trol Framework, a budget instrument the government uses to control its investment in renewables. If this investigation sug-gests that the government is already over-committed, a ratcheting back will likely fol-low. Evidence of this is already beginning to accumulate, and in June, the secretary of state announced the government’s inten-tion to close the Renewables Obligation to onshore wind projects nearly a year early. Bingham also pointed out that the govern-ment has removed the exemption that re-newable electricity, including power gener-ated from wood pellets, had for an existing climate change levy.

On the second day of the event, Nigel Adams, a member of Parliament represent-ing the area surrounding the Drax power station, and who is arguably the biggest

proponent for biomass in the British gov-ernment, underscored Bingham’s last point, telling the audiences that when the climate change levy exemption was taken away, the market value of Drax dropped £425 million ($642 million).

Affordability in Age of AusterityThis environment of austerity is not

limited to the U.K., and each speaker made it clear that if biomass power is going to continue to be tapped by European govern-ments as a means of achieving their carbon reduction goals, the industry must make a better case to convince them that repow-ering with wood pellets offers a proven, low-cost solution. “We see biomass as a low-cost, affordable technology, and very competitive on a whole system costs ba-sis,” said Deborah Keedy, head of biomass procurement at Drax Power. Bingham re-minded the audience that other low-carbon solutions like wind have to be backed up by expensive, fossil fuel-powered generation because of their intermittency. Addition-ally, to move generated power, these solu-tions required new transmission lines that biomass conversions do not. Bingham and

Keedy both suggested that as governments have to make tough decisions about where to invest finite public monies, the industry would be wise to highlight the low total cost of biomass.

Winning a Social LicenseIn addition to proving its solution of-

fers an inexpensive pathway toward a low-carbon future, the industry is well-aware that policy makers answer to voters who are continually bombarded with misinforma-tion from NGOs fiercely opposed to the industry. “We welcome the scientific discus-sion around the use of wood for energy to be had,” said Richard Peberdy, vice presi-dent of sustainability at Drax. The confer-ence organizers continued in their tradition of providing attendees a forest science-based panel that articulated the complex science of carbon accounting that is so of-ten lost on policymakers. Other presenters, including Mike Williams from Westervelt, offered a simpler, easier-to-digest argument that outlined the industry’s ability to oper-ate sustainably. “We plant more seedlings in a year than most environmentalists will in their lifetime,” he said.

“We deliver real benefits to forests. We have to talk about that,” added John Kep-pler, Enviva LP CEO, the event’s second morning keynote speaker.

The industry, in an effort to assuage the concerns of European policy makers, has launched a comprehensive wood pellet cer-tification program, the Sustainable Biomass Partnership. During the event, Williams an-nounced that Westervelt had successfully completed its certification audit, becoming the world’s first SBP certified producer. The announcement complimented Keedy’s ear-lier remarks, which, together, left no doubt that the SBP program would become com-monplace in the industry. “We are very clear at Drax that we want all of our producers to be SBP–certified by 2016,” she said.

Authors: Tim PortzExecutive Editor, Biomass Magazine

[email protected]

PELLET¦

CRITICAL COMMUNICATION: Vice presidents of communications, Kent Jenkins, left, at Enviva, and Chris Hughes, USIPA, discuss strategies for taking the industry’s message of forest health, jobs and low-cost, low-carbon, baseload energy to policymakers and the general public. PHOTO: TIM PORTZ, BIOMASS MAGAZINE


ThermalNews

Plans for the Teesside Renewable En-ergy Plant, a 40-MWe biomass cogenera-tion facility to be located at Port Clarence in Cramlington, Northumberland, England, continue to advance, with the sale of the facility and signing of design, construction, operation and fuel supply agreements.

Project developer Eco2, which has de-veloped several other U.K. biomass projects, and Temporsis Capital began the project two years ago, and recently sold the facil-ity to Glennmont Partners via a £160 mil-lion ($242 million) deal. The project is be-ing funded by Glenmont Partners with debt arranged and provided by Deutsche Bank and Danske Bank, supported by EKF, the export credit agency of Denmark.

Babcock & Wilcox Vølund A/S recent-ly won a contract to design and build the

plant with joint venture partner Lagan Con-struction Group Ltd., as well as a separate contract to provide operations and main-tenance services for the plant, a collective contractual value of more than $190 million.

Stobart Energy has landed a contract to provide fuel to the facility. Under the agree-ment, Stobart will source, process and sup-ply 250,000 metric tons of recycled waste wood to the plant annually for 14 years, equating to 3.5 million metric tons over the life of the agreement.

Project engineering of the Teeside Re-newable Energy Plant is underway, and con-struction is scheduled for completion in the first quarter of 2018.

The Sustainable Biomass Partnership announced that NSF International has be-come an SBP-approved Certification Body. NSF has provided evidence that it meets the SBP requirements regarding its existing ac-creditations and has demonstrated sufficient resource and competence to manage the SBP certification program under the SBP Framework.

The SBP Framework of standards and processes enables biomass produc-ers, typically pellet and wood chip mills, to demonstrate that they source their feedstock

responsibly and that it complies with the regulatory, including sustainability, require-ments applicable to power generators burn-ing woody biomass to produce energy.

NSF has been approved for the certifi-cation, in Canada and the U.S., of biomass producers and the biomass supply chain—for example, biomass producers and com-ponents of the downstream supply chain, such as trade, transport and processing that require chain of custody certification.

B&W Volund, Stobart win England biomass CHP plant contracts

NSF International becomes SBP-approved certification body

An artist's rendering of the Teesside Renewable Energy plant. PHOTO: ECO2


Biomass thermal energy is too often treated by Con-gress as the underappreciated offspring of alternative energy. This may soon change, as the House Biomass Caucus has recently been rechartered under the leadership of freshman Rep. Bruce Westerman, (R-Ark.), who holds a master of for-estry degree from Yale, and second-term Rep. Ann Kuster, (D-N.H.). The last time there was a Biomass Caucus in the House was 2012.

A congressional caucus, whether on the House or Sen-ate side, may best be described as a group of legislators with a common interest, e.g., the Congressional Hispanic Caucus or the House Diabetes Caucus. Unlike a formal commit-tee, they have no legislative authority but serve as a meeting ground for members of similar interests to discuss their con-cerns and often to come up with concepts that frequently are turned into proposed legislation. Think of them as idea incubators.

The biomass industry is fortunate to have Westerman and Kuster as cochairs of the caucus. They are both com-mitted to the sustainable use of biomass as an energy source despite their otherwise differing overall political viewpoints. Westerman may correctly be cast as a relatively conservative Republican, while Kuster is a moderate Democrat. These differences, however, may well serve as a major benefi t to the biomass industry as their collaboration is an unusual example of bipartisanship in an era of political divisiveness.

Their separation on the political spectrum will not go unnoticed by other members. Whether the new caucus will move the policy needle for our industry depends on a num-ber of factors. Among these are: the number of other rep-resentatives who choose to become members; the develop-ment of an agenda that truly addresses issues that prevent biomass from playing a more prominent role in the nation’s energy future and that improves the economies and environ-ments of various states and districts; the willingness of the members to pursue the Caucus’s agenda; and the establish-ment and maintenance an active relationship with this indus-try.

While a formal announcement of the rechartering of the caucus has not yet been made as of this article’s writing, a kickoff event in Washington, D.C., is planned for National Bioenergy Day on Oct. 21. The Biomass Thermal Energy Council will be asking its members to contact their congres-sional representatives encouraging them to become caucus members. We also encourage our biomass industry allies to contact their respective members of Congress, asking them to join this effort and educating them to the importance of supporting the caucus and the industry.

The core themes you should be relaying to your repre-sentatives are: Thermal energy represents 40 percent of the energy used in the U.S.; support for biomass technologies in federal, state and local laws and regulations will grow local economies in terms of jobs and investment and help states meet the regulatory requirements recently implemented by the U.S. EPA; biomass is a truly renewable resource; its ca-pacity to provide combined heat and power will result in more effi cient buildings and industrial processes; and it has the advantage of being a dispatchable, nonintermittent ener-gy source, unlike clean energy technologies like wind and so-lar. In a period of historic drought and massive forest fi res, one should also underline the benefi cial relationship between good forestry practices and reductions in the number and intensity of forest fi res.

In addition to your own members, consider writing a note to Kuster and Westerman thanking them for their re-establishment of the Biomass Caucus and willingness to ex-pand the use of a native resource, since biomass not only provides heat and power but by its nature serves to improve the quality of life, whether as a carbon sink or a wildlife habi-tat for all to enjoy.

You may contact Westerman by calling his offi ce at 202-225-5206 and Kuster at 202-225-5206 and asking to speak with the staff member responsible for agriculture and forest-ry matters. Another excellent means of thanking the cochairs while educating the public about the importance of biomass energy is to write a letter or op-ed piece for one of your local newspapers or contacting other local media outlets.

It is time for thermal biomass to step out of the shad-ows of solar and wind energy technologies and to be ac-corded the same respect as these other alternatives to fossil energy. With the support of the House Biomass Caucus and your active involvement at the federal, state and local levels, biomass energy can assume its deserved role in the clean energy family.

Author: Joel StronbergExecutive Director, Biomass Thermal Energy Council

202 [email protected]

Biomass Regains Congressional AllyBY JOEL STRONBERG

THERMAL¦


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Operation Biomass HeatWood heat is keeping the Vermont Army National Guard warm during the winter.BY ANNA SIMET

Since it opened in 2003, the Ver-mont Army National Guard's Readiness & Regional Technology Center has been referred to as the

armory of the future, housing numerous different branches of the U.S. military. The 87,000-square foot, cutting-edge training and technology center serves as headquar-ters to the 86th Infantry Brigade Support Battalion (Mountain), an information oper-ations schoolhouse for both the U.S. Army and U.S. Air Force, and a premier training and simulation center for the Northeast U.S.

Located at the oldest private military school in the country, Norwich Univer-

sity in Northfield, Vermont, the facility has continued its trend of innovation with the recent installation of four P4 Fröling wood pellet boilers, which was complete in the spring. “The decision to install the pellet system was driven by the need to in-crease our renewable energy sources, but it needed to have an acceptable return on investment, or savings to investment ratio,” says VTARNG Energy Manager William Moore. “Payback was calculated with wood pellet pricing at $12.24 per MMBtu, or $208 per ton,” he says. At that time, the boilers presented a higher return on investment than solar PV panel electricity generation,

solar domestic hot water heating and solar building heat, adds Major Jere Berg, project manager.

But fast forward to October 2015, and bulk-delivered pellets are being sold at an average of $245 and $275 per ton, consider-ably higher than projected. While not ideal, as commissioning of the system looms, wood pellet prices are much more stable than those of oil, and pellet heat remains an effective, simple means of meeting military renewable mandates and achieve energy self-sufficiency.

The system was installed by Sunwood Biomass, a Vermont–based firm that has

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The Vermont Army National Guard’s Readiness and Regional Technology Center is located at Norwich University, the oldest military school in the country.


THERMAL¦

completed over 130 projects across the state. Owner David Frank highlights the unique storage system at the RRTC, which was devised after determining outdoor space wasn’t sufficient. Pellets are delivered on site and pneumatically pumped into two 25-ton storage silos located in the boiler room. “Pellet silos are vented to the outside to minimize any carbon monoxide (CO) concerns, and are activated with a CO sen-sor,” Frank adds.

The automatic, low-maintenance sys-tem, Moore says, is clean and simple to operate. It is estimated to offset roughly 19,000 gallons of fuel oil annually, provid-ing an annual savings of around $30,000.

While the pellet boiler system is yet to be commissioned, the VTARNG is no stranger to wood heat. A ChipTek wood chip gasifier was installed at the Combined Support Maintenance Shop at Camp John-son in Colchester, Vermont, in 2000, and is still heating the facility today. Unlike the wood pellet boilers at RRTC, the Chiptek system was part of the facility’s original design. “The main driver for installing the wood chip system was economics,” says Moore. “The cost of wood chips then was

about $39 per ton, and natural gas at CSMS was 89 cents per CCF.

Other than the gasifier itself, the sys-tem is fairly simple, says Peter Tousley, also an energy manager, and parts are “pretty much off the shelf.”

At Camp Johnson, wood chips are stored in a circular storage barn and deliv-ered to the auger trough bin via a front-end loader. The system does requires quite a bit more oversight than the pellet system will, which includes refilling the chip hopper, cleaning out the ash, and keeping the au-gers operating. However, Moore notes that the wood chip unit is nearly 15 years old, and says technology has likely significantly evolved since then.

Wood chips for the system are supplied via a state contract. Moore says the facility has been using an average of about 230 tons per year for the past few years, and lo-cal suppliers have included Vermont com-panies such as Claire Lathrop Band Mill and LimLaw pulp.

Finding a supply of wood chips hasn’t been a problem, according to Tousley, but increasing fuel costs have been a challenge. “Most recently, when the chip supply con-

tract went out to bid, our supplier didn’t bid,” Moore adds.

Up until last year, the wood chip boiler operated from roughly November to March and was approximately one-half the cost of natural gas, Tousley says, although since it was installed 15 years ago, wood chip prices have doubled and natural gas has been on the downslide. However, as is the case with oil, natural gas prices are volatile and, even-tually, will rise again.

Despite temporary challenges with in-creasing fuel costs, utilization of wood chip fuel, as well as pellets and cordwood—a few of its firing ranges in Jericho, Vermont, are heated with woodstoves—keeps the Ver-mont Army National Guard on par with mandates

“It [biomass] helps the VTARNG meet renewable energy goals as outlined in Executive Orders to the Department of Defense,” says Tousley.

Authors: Anna SimetManaging Editor, Biomass Magazine

[email protected]

ABOVEINDOOR OVER OUTDOOR: Pellets at the RRTC are stored in two 25-ton storage silos located in the boiler room. Indoor storage was found to be the most suitable op-tion for the facility, as available outdoor space was insufficient. PHOTO: SUNWOOD BIOMASS

LEFTBEST IN BULK: Pellets are delivered in bulk to the RRTC armory and pumped into indoor storage silos. PHOTO: SUNWOOD BIOMASS


BiogasNews

Oberon Fuels Inc. has part-nered with Ford and a conglom-erate of companies and academia involved with the European automotive industry to develop the world’s first production pas-senger car powered by fuel-grade dimethyl ether (DME).

California-based Oberon Fuels has been working to develop the mar-ket for DME fuels made from biogas and industrial waste streams in the U.S. through a combination of technology development—in concert with Volvo Group—as well as with several regulatory bodies including the U.S. EPA, the California Air Resources Board, ISO and ASTM International.

The 3-year, €3.5-million ($4 million) proj-ect will research, analyze and test the potential of DME and oligomethyl ether (OME) as die-sel replacements in passenger cars and heavy-duty vehicle engines, respectively, and will result in the first OEM-produced DME passenger car in the world.

Oberon is partnering with Ford, Forsc-hungsvereinigung Verbrennungskraftmaschin-en e. V. (FVV) and other FVV member com-panies for the project.

Technical preparations and combustion engine development will span the first two years of the project with the third year focused on building demonstrator cars based on the Ford Mondeo.

Oberon Fuels will supply DME for the project from its small-scale pilot plant in Braw-ley, California, which has a nameplate capacity of 4,500 gallons of DME per day.

Greenlane Biogas has received a contract to provide engineering services to CR&R Waste & Recycling for its biogas to renewable natural gas (RNG) project in Perris, California. Under the terms of the agreement, Greenlane’s scope of work will involve detailing a design solution to enable the RNG produced at the facility to meet the stringent Rule 30 requirements for in-jection into California pipelines.

Rule 30 is a guideline created by the state utilities specifying the pipeline gas quality RNG producers must meet in order for RNG to be received and distributed. One standard in Rule 30 that has inhibited producers from injecting their RNG into pipelines is the requirement for the RNG to have a heating value of 990 BTU/SCF.

To meet the 990 BTU/SCF criteria, a high-er heating value fuel such as propane, would normally need to be blended into the RNG.

This practice reduces the “green” content of the RNG and it may be cost prohibitive. Lower heating value requirements for RNG, most commonly 960 BTU/SCF, have been adopted in other states making the California require-ment the most rigorous in the U.S.

Greenlane previously provided a Totara biogas upgrading system for the CR&R RNG facility, which is being developed in four phases. With a capacity range of 400 to 1,250 standard cubic feet per minute, the Totara system will ini-tially convert biogas produced from the anaero-bic digestion of 80,000 tons annually of munici-pal organic waste into 1 million gallons of diesel gallon equivalent RNG to fuel CR&R’s fleet of waste collection vehicles. Subsequent phases will see the facility expand to process over 300,000 tons annually of organic waste to produce RNG for both vehicle fuel and pipeline injection.

Oberon Fuels, Ford, FVV partner to build DME-fueled passenger car

Greenlane Biogas contracts with CR&R on California AD project

Oberon’s pilot plant is located in Brawley, California, and produces up to 4,500 gallons of dimethyl ether per day.PHOTO: OBERON FUELS


BIOGAS¦

The American Biogas Council is in its fifth year of existence. The council has grown and expanded over the these years, making inroads in supportive public policies and biogas and digestate market development. This past year, the ABC has been influential in the significant prog-ress of the biogas industry, due in part to the support and financial contributions of our members. Our efforts in biogas energy advocacy on Capitol Hill and throughout the U.S. are bearing fruit. Biogas is now more present in discussions regarding our nation’s energy portfolio. We are influencing policies at the federal, state and local levels, and we have won many influential supporters. In addition, we are educating the public and media about the economic and societal benefits of biogas. Media and industry analysts come to the ABC for information on the biogas market, and we are educating those within and outside the biogas industry with events and educational tools.

One of the more active ABC working groups has been the AD Co-Products Working Group Digestate Standard Task Force. A year ago in Baltimore, as part of the REFOR14 Event, ABC sponsored an in-person workshop, “Developing A New Classification System For Digestate and Digestate-Derived Products.” The outcome of the workshop was the consensus to create a standard for digestate similar to the U.S. Composting Council’s Seal of Testing Assurance program, and take from the United Kingdom standard as well. The ABC’s Co-Products Working Group created the Digestate Stan-dard task force that has been meeting regularly since December 2014. That group prepared and presented a draft standard for circulation at ABC Workshop at the April BioCycle conference in Portland. The task force will meet again this October at the BioCycle REFOR15 Conference in Boston to carry the mission forward at its third workshop. The foundation of the ABC Digestate Standard is set and the intent is to finalize many of the pieces this October.

This standard has significant potential to bring in-creased value to digestate and digestate-derived prod-ucts. This value is warranted, and the value play is simply not understood by the public. Several things are certain. Phosphorus is not renewable, and the sources for it are dwindling. It does not take extensive research to find many projections that predict significant shortages in the near future. The digestate from the digestion of animal

manures, food waste and biosolids provide a recoverable source of phosphorus. The development of a standard that attaches a correct quality and value to this renew-able source of phosphorus, in addition to the capture of nitrogen in the form of ammonia, potassium and fiber for soil amendment, is a desired consequence of the AD Co-Products Working Group Digestate Standard. This standard will benefit the entire industry in the marketing and sale of digestion coproducts nationally.

The ABC has continued building on the success of the 2014 publication of the Biogas Opportunities Roadmap, written jointly by the USDA, U.S. DOE and U.S. EPA. The ABC had a seat at the table through the researching and authoring of the roadmap, and helped extensively with supplying information and editing. This document has put biogas squarely in front of federal policymakers and lists dozens of commitments for ac-tions the agencies will take to better use existing funds to help grow the biogas industry in the U.S. In 2015, the ABC worked with the White House and the USDA, EPA, and DOE to make sure the commitments in the roadmap are met. In July, a large contingency of the ABC spent two days on Capitol Hill meet with congressional and committee offices to reinforce the daily efforts of the ABC lobbyist. The group also presented USDA Secretary Thomas Vilsack the Champion of Biogas award. Vilsack publically commended the ABC’s efforts to meeting the USDA plan for deployment of a minimum of 500 farm-based digesters in the next 10 years in the U.S.

Finally, the ABC has always taken the roll of educa-tion as one of paramount importance to the industry. We are embarking on an effort to provide a focused “Digest-er Operators University.” The industry that ABC is help-ing build will need trained individuals to operate what will become both distributed power and renewable fertilizer, in a safe manner that fits into the local landscapes. More details will be developed regarding this effort in the com-ing months, but in the end, the focus will be to provide an industry of existing digester operations and new de-velopers with trained operators.

Authors: Bernard B. Sheff VP of Engineering, ES Engineering Services

Chairman, American Biogas Council [email protected]

Focusing on 3 Prominent EffortsBY BERNARD SHEFF


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Bringing AD to AfricaTropical Power has chosen Kenya to house Africa’s first-ever anaerobic digester, and is focusing on the country for additional projects.BY KEITH LORIA

In August, Tropical Power Energy Group opened Africa’s first grid-connect anaer-obic digester plant in Naivasha, Kenya. Part of the Gorge Farm Energy Park,

the $7.5 million project took nearly a year to get up and running. The plant is expected to utilize 50,000 metric of organic crop waste each year and produce at least 35,000 metric tons of nitrogen-rich byproduct.

Energy experts agree that the Gorge Farm AD Plant is a pioneering power proj-ect for Kenya. Distributed power projects, which generate electricity close to the point of use, are vital to Kenya’s energy security, reliability and efficiency. “Government min-istries, departments and agencies are work-ing together to encourage the private sector to develop high-quality distributed renew-able power assets, like the Gorge Farm En-

ergy Park,” says engineer Joseph Njoroge, principal secretary for the Ministry of En-ergy and Petroleum. “Kenya is open for business for investors and developers inter-ested in clean, renewable and bankable en-ergy projects. The biogas technology at this cutting-edge project will provide Kenyans with more clean, reliable and cost-effective electricity in their homes and businesses.”

Getting Off the GroundTropical Power is a joint venture be-

tween Mike Mason, a British entrepreneur, and the owners of Vegpro, an agricultural company in Kenya. Mason wanted to gen-erate renewable power from biomass and Vegpro wanted to reduce its carbon foot-print and be more resource-efficient, so the two teamed with ClimateCare in taking its

2.8-MW biogas digester plant in Naivasha, Kenya, through the voluntary gold stan-dard. “The aim of the company is to make efficient use of locally available renewable energy feedstocks, such as harvest waste on the farms where we operate,” says Tom Morton, director of ClimateCare’s Nairobi office, and a key member of the Tropical Power team. “We use this to generate cost-effective renewable energy, to displace fossil fuels and, where possible, use the byprod-ucts as a fertilizer.”

Getting the project off the ground wasn’t easy. There were few engineers in Kenya and certainly not enough to get the job done. ClimateCare and Vegpro both provided help from other facilities around the world and helped train more than 50 Kenyans in the jobs necessary to get it

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FORGING A PATH: This year, Tropical Power brought online an anaerobic digester at Gorge Farm Energy Park. The facility is the first grid-connected plant of its kind in Africa. PHOTO: TROPICAL POWER


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done. “Vegpro has operations in Kenya,” Morton says. “When investing in a project, we seek partners that control the feedstock, have capital to coinvest and have an energy demand. It therefore made sense to work on one of Vegpro’s farms initially, before rolling the model out with third parties.”

The facility is set up as a two-stage AD plant to use local, organic crop waste as feedstock, which is expected to be more than 30 percent more efficient than con-ventional single-stage plants. According to Morton, the waste is then digested by microorganisms feeding in the absence of oxygen to produce biogas, which is com-busted in gas engines to produce electric-ity and heat. “Through biogas and solar, we want to displace expensive and imported generation fuels—like diesel and heavy fuel oil—from Kenya’s distributed power mix,” says Johnnie McMillian, Tropical Power’s managing director. “The Gorge Farm AD Plant is physical proof that locally pro-duced feedstock can be used to generate clean and cost-effective distributed power for all Kenyans.”

The plant has an effective life of 25 years and the project is expected to have a six-year payback period due to the combi-

nation of grid sales and higher-tariff energy supply to Gorge Farm.

“The biology of the microbes that make the gas and the feedstocks that pro-vide the source of energy are unique from site to site, and require time and expertise to understand,” Mason says. “Tropical Power has been supported in this with extensive help from the Universities of Oxford and Southampton.”

Other companies who had a hand in the success include Snow Leopard Projects GmbH, providing Tropical Power’s exclu-sive development license; GE, which de-ployed two Jenbacher J420 gas engines, pro-vided by Clarke Energy; IET Siemens for switchgear and transformers, SAR GMBH for instrumentation and control systems, and Paulmichel for agitators and stirring equipment.

The Gorge Farm AD Plant will be owned and managed by Biojoule Kenya, an independent power producer.

Morton feels there is great potential for other biogas power projects in certain parts of Africa. “While we are focusing on large-scale opportunities, such as Gorge Farm Energy Park to begin with, we are also doing R&D on reducing the scale of

the operations so that they can be applicable in areas with less feedstock and lower elec-tricity demand,” he says. “This is the first AD plant, and we also have a small plant in Kenya that uses rose waste to displace kero-sene in a rose propagation unit.”

Looking to the FutureTropical Power has a 5-MW biogas

project in development in Ghana at the Kpong Farm Energy Park, but Morton says it’s still in the planning stages and there isn’t much he can share. He does reveal that next year, Tropical Power will begin construction on a further 10 MW of solar generation ca-pacity at the plant that will be colocated with the AD plant in Naivasha and will feed di-rectly to the grid.“The key thing for the AD is to have ownership of the feedstock, to coinvest and to have an electricity demand,” he says. “We also need a grid connection to sell the surplus power. Ideally, there would also be a set for the waste heat from the en-gines and we are exploring possibilities for this in Naivasha.”

Authors: Keith LoriaFreelance writer, Biomass Magazine

[email protected]

WASTE TO WATTS: Daily, the Gorge Farm Anaerobic Digestion Plant uses about 150 metric tons of crop waste that is produced on site.PHOTO: TROPICAL POWER

AdvancedBiofuelsNews

Nearly two dozen top executives from the advanced and cellulosic bio-fuels industry recently sent a letter to President Obama regarding the U.S. EPA’s renewable fuel standard (RFS) volume requirement proposal, four of whom spoke during a Sept. 16 conference call to discuss its message.

In the letter and during the call, it was emphasized that the May 29 pro-posal is negatively impacting invest-ments and partnerships in advanced biofuels, is sending projects and jobs overseas, and is at odds with the presi-dent’s initiatives to combat climate change. “As you know, the point of the RFS was to require oil companies to buy and sell an increasing amount of renewable fuel to address the fact that the oil industry would otherwise use its market position to cut off mar-ket access for competitors and there-by smother investment in cellulosic ethanol and advanced biofuels…,” the letter reads. “And yet, for the first time in RFS history, EPA is proposing to change the rules in the middle of

the game to allow challenges related to the “distribution” of renewable fuel by oil companies—i.e. the oil in-dustry’s refusal to buy and distribute low-carbon, renewable fuel and its willingness to block brand-licensed gasoline retailers from selling higher renewable content blends under their branded canopy to be cause for waiv-ing the RFS on a year-to-year basis.”

“It’s very frustrating for us, and we think just a little but ironic, that the RFS, which is based on the concept of lowering greenhouse gas emis-sions from motor vehicle fuels, has been undermined by one of the most active administrations in fighting cli-mate change,” said Chris Standlee, executive vice president of global af-fairs at Abengoa Bioenergy. Adam Monroe, North American president of Novozymes, Dan Cummings, Poet-DSM president, and Vincent Chornet, Enerkem Inc. CEO, also spoke during the call.

Advanced biofuel leaders discuss negative effects RFS proposal

Finnish wood-based UPM BioVerno diesel has been found to significantly reduce harmful tailpipe emissions. A number of engine and vehicle tests have been carried out across a number of key research institutes such as VTT Technical Research Centre of Finland Ltd., University of Vaasa in Finland and at FEV, an internationally recognized vehicle engineering company based in Germany.

UPM BioVerno renewable die-sel has already been shown to func-tion just like conventional diesel in all diesel engines yet it generates up to 80 percent less greenhouse gas emis-sions during its life-cycle compared to conventional fossil diesel fuels. Ad-ditional proof of the excellent prop-erties of the Finnish wood-based UPM BioVerno diesel is provided by the latest test results, which show that UPM BioVerno also reduces harm-ful tailpipe emissions.

These emissions, such as par-ticle mass, hydrocarbon, carbon di-

oxide, nitrogen oxides and carbon monoxide emissions, were reduced by up to dozens of percent com-pared to conventional diesel fuel, de-pending on vehicle technology and blend. All the tests showed similar or improved efficiency of the engine, without compromising the engine power, when UPM BioVerno was introduced to the fuel blend. In addi-tion, it could be shown that by using 100 percent UPM BioVerno diesel, fuel consumption decreased.

FEV Germany carried out a series of tests on UPM BioVerno's effect on engine functionality and emissions with both a diesel blend containing 30 percent UPM BioVer-no and 100 percent UPM BioVerno diesel. In addition to measuring en-gine output and fuel consumption, the tests focused on tailpipe emis-sions and the performance of UPM BioVerno compared with conven-tional diesel.

Tests show UPM's renewable diesel significantly reduces emissions

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Bioenergy has attracted increasing investments and support in recent decades, as a result of a growing empha-sis toward energy security and greenhouse gas emission reductions. More than 30 billion gallons of biofuel were produced globally in 2014, of which around 50 percent was corn ethanol produced in the U.S., and 30 percent was sugarcane ethanol produced in Brazil.

The U.S. EPA now places greater emphasis toward advancement of second-generation biofuel produced from cellulosic biomass such as agricultural and forestry residues and perennial grasses. This involves a more complex conversion of biomass (cellulosic and lignocel-lulosic material) into ethanol. The EPA’s current target is to produce 20 billion gallons of cellulosic biofuel per year by 2022. Studies have shown this will require close to 200 million metric dry tons of biomass.

In the U.S., corn stover is one of the largest sources of agricultural residue for cellulosic biofuel production. Studies have found that cellulosic biomass, such as corn stover, have 20 to 30 percent supply variations, compared to 12 to 15 percent variations for corn grain itself. This is because while corn stover yields are proportional to corn grain yields, a portion of stover has to be left on the ground due to equipment limitations, and maintaining soil organic carbon. The effect is an increased overall variation in corn stover compared with corn grain.

In addition to exposure to higher supply variations, cellulosic biorefineries will be required to source biomass locally, due to long-distance transport limitations. In the absence of a feedstock strategy, these regional imbalances in cellulosic biomass supply and demand will transform into significant variations in biomass price, and ultimately lead to sustainability issues for cellulosic biofuel business. Engineering solutions, such as biomass storage, pretreat-ment using torrefaction, pelletization, and pyrolysis, can partially mitigate supply variations but entail significant costs.

Winning StrategyAn effective risk mitigation strategy associated with

feedstock supply variations is a portfolio strategy. Using the approach of modern portfolio theory (MPT), com-panies venturing in cellulosic biofuels can develop a diver-sification framework that optimizes its business portfolio. Simulation shows that up to 70 percent of business risks associated with biomass supply variation can be mitigated by using a portfolio approach. These strategies do not re-quire additional infrastructure, and can be used together with engineering options to aid in designing biomass sup-ply chains to facilitate the development of a sustainable cellulosic biofuel industry.

According to MPT, creation of a portfolio by mixing assets, the effective variance of the portfolio is always less than the individual variance of underlying assets. This is because the variation of one asset could counter the varia-tion of the other asset, and the net effect is a lower overall variation for the portfolio.

In the case of cellulosic biofuel, an optimal portfolio can be created by investing in biorefineries that are based on different feedstocks such as corn stover, wheat straw, switchgrass, energy cane and sugarcane bagasse. Switch-grass has the potential as a dedicated energy crop using marginal cropland, and produces comparable ethanol as corn stover. Wheat straw, another attractive alternative for feedstock diversification, is also abundant in the U.S. Corn Belt. Energy cane, miscanthus, and sugarcane residue are other potential options.

By varying the proportion of investment on each feedstock type, companies can achieve an optimal port-folio that offers the highest expected return for a defined level of risk (known as the efficient frontier). Portfolios that are not on the efficient frontier are considered sub-optimal, because they do not provide enough return for the level of risk.

Companies operating in both first- and second-gen-eration ethanol may look for diversification between prod-ucts to hedge against policy and price variation.

Impact on Business RiskBased on simulation, an optimal portfolio using corn

stover, wheat straw and switchgrass could achieve 70 per-cent reduction in risks associated with individual supply variations, while increasing the biomass cost by only mar-ginally (less than 5 percent). The biomass cost hike is be-cause switchgrass is assumed to be more costly than corn stover. Further advancements in switchgrass research and development to reduce its production cost could further enhance the advantage of using switchgrass to mitigate year-to-year supply variations in corn stover. The amount of risk in supply variation a biorefinery is willing to ac-cept will depend on the fundamental business strategy of the biorefinery, and the amount of premium they are will-ing to pay to reduce risks associated with biomass supply variations.

Author: Rajdeep GolechaBiofuel business portfolio developer

517-755-7880 [email protected]

Building Sustainable Cellulosic Biofuel PortfoliosBY RAJDEEP GOLECHA

ADVANCED BIOFUELS AND CHEMICALS¦


¦ADVANCED BIOFUELS AND CHEMICALS

Mission IncompleteThe U.S. Department of Defense has yet to purchase alternative fuels beyond testing and demonstration purposes, but intentions remain. BY KATIE FLETCHER

In July, the U.S. Government Account-ability Office published a report observ-ing U.S. Department of Defense invest-ments in alternative fuels. Its purpose

was to review the extent to which the DOD, the single largest consumer of energy in the federal government, has purchased al-ternative fuels and demonstrated its ability to meet safety, performance and reliability standards. It also evaluated DOD’s alterna-tive fuel purchasing process, how cost dif-ferences between alternative and conven-tional fuels are taken into consideration, and how the DOD has used Defense Pro-duction Act authorities to promote the de-velopment of a domestic biofuel industry.

The report, which was delivered to the chairman of the House Committee on Armed Services, found that in 2014, the Navy, Air Force and Army purchased about 3.8 billion gallons of petroleum fuel and other fuel products at a total cost of about $14.4 billion—not adjusted for inflation. DOD has an operational energy strategy that indicates a disruption of oil supplies is plausible and increasingly likely in the com-ing decades given the realities of global oil markets. For this reason and others, one of its goals is to expand its energy options. U.S. DOD Energy Policy—DOD Directive 4180.01—was released in April 2014, and states that DOD will “diversify and expand

energy supplies, including renewable energy sources and alternative fuels.”

Michael McAdams, president of the Advanced Biofuels Association, believes biofuels are one of the most significant tools for the aviation industry, in particular, to tackle climate change issues. “What the military does is important because they are the front runner for demonstrating the abil-ity for these fuels to be used in what is one of the most strenuous performance criteria in the world, and that is military use,” he says.

Each of the three military departments has energy guidance documents that ad-dress alternative energy or alternative fuels.

DEPARTMENT

ALCOHOL-TO-JET: The U.S. Navy, Naval Air Systems Command and Gevo Inc. successfully conducted the first ATJ supersonic flight at the Naval Air Warfare Center in Patuxent River, Maryland, last year. The F/A-18 testing is a significant milestone leading to a military specification. PHOTO: : U.S. DEPARTMENT OF DEFENSE



Two of these departments—the Navy and the Air Force—have also established us-age goals for alternative fuels. The Navy has a goal of deriving 50 percent of total DOD energy consumption from alterna-tive sources by 2020. “Toward this goal, the secretary of the Navy has established part-nerships with DOE and USDA to assist in the development of a commercial biofuels industry,” says Michael Domen, a chemist at the Defense Logistics Agency Energy.

According to Navy estimates, to meet this goal, it would annually require using about 336 million gallons of alternative fuel, both naval distillate and jet fuels, by 2020. Besides these quantitative goals, the guidance established a goal of demonstrat-ing and deploying the Great Green Fleet. This demonstration of ships and aircraft fueled by alternative fuels and other alterna-tive energy sources was completed in 2012 and aims to be deployed in 2016. The Air Force has a goal of increasing, to 50 percent of total consumption, the use of cost-com-petitive, drop-in alternative jet fuel blends for noncontingency operations by 2025.

Patrick Gruber, president and CEO of Gevo Inc., believes from a very fundamen-tal, strategic standpoint, it makes sense for the military to have options that are alter-native to oil. “They are also smart enough to realize that these options can’t just be turned on like a spigot,” he says. “It takes massive amounts of technology, invest-ments, infrastructure, building capital in a plant in order to make it happen. It’s a long-term game.”

This is perhaps why the findings en-closed in the GAO report are not as far along as one would assume with ambitious energy targets ahead. The GAO report states that the DOD has purchased small quantities of alternative fuels for research, development and demonstration purposes, but hasen’t purchased large quantities for military op-erations yet. From fiscal years 2007 through 2014, the military departments have pur-chased about 2 million gallons of alternative fuels and naval distillate fuels at a premium price to conduct the department’s testing, approving and demonstration activities at a total cost of about $58.6 million—adjusted for inflation to fiscal year 2015 dollars using the gross domestic product (GDP) price in-

dex. About 450,000 of those gallons were for the Navy’s Great Green Fleet demon-stration—part of a larger, biennial multina-tional maritime exercise known as the Rim of the Pacific exercise. These alternative fuel gallons are greatly overshadowed by the approximately 32 billion gallons of jet and naval distillate conventional petroleum fuel purchased over the same period at a total cost of about $107.2 billion—adjusted for inflation to fiscal year 2015 dollars using the GDP price index.

DOD has a standard process to pur-chase all fuels for military operations and is currently required to ensure alternative fuel purchases for operational purposes are cost competitive with conventional fuels. “One of the main factors that must be considered before biofuel blends can be purchased for operational use is price,” Domen says. “As with conventional petroleum products, quality assurance, technical requirements and compliance with solicitation terms are other important considerations when evalu-ating offers.”

Before any alternative fuel can be used in military operations, DOD must test the fuel to validate whether it can meet unique

safety, performance and reliability standards of military equipment and platforms. The military departments follow a testing and approval process that is similar to that used in evaluating whether to include prospec-tive alternative fuels in the commercial jet fuel standard issued by ASTM Internation-al. Some fuel properties important to these standards include flash point, energy den-sity, freezing point, thermal stability, lubric-ity and viscosity.

In support of DOD’s large-scale fuel program, the Defense Logistics Agency Energy activity provides worldwide energy support. “It provides an outlet for produc-ers and suppliers to sell their products,” Domen says. “Much like the many supply agreements and partnerships that have been announced recently between airlines and al-ternative jet fuel producers, DLA-E’s pur-chase program solicitations are announced on an annual and continual basis, and the recent incorporation of biofuels to these solicitations sends the signal to industry that a large demand is there.”

DLA-E provides the vast majority of fuel and other energy related products and amenities to the military services. “We are

PAVING THE WAY: In June 2012, the U.S. Air Force flew an A-10 Thunder Bolt jet aircraft powered by a Gevo-produced blend of 50 percent ATJ fuel and 50 percent JP-8 (the traditional MIL-SPEC jet fuel). PHOTO: U.S. DEPARTMENT OF DEFENSE


able to take full advantage of the efficien-cies of scale, both in terms of product pricing and end-to-end logistics,” Domen says.

According to Domen, DLA-E utilizes the Defense Working Capital Fund and operates under a customer-based approach where the military services or other federal agencies pay DLA-E for the product and then DLA-E uses those funds to purchase the product from commercial industry. DLA-E charges the customer a standard price for each product, regardless of the price of energy that week. DOD rebalanc-es the fund by updating the standard prices on an annual basis. The DWCF can absorb this price volatility, which minimizes dis-ruption to the military services and simpli-fies annual budgetary planning.

Fuel must first meet DOD’s technical fuel specifications and other technical eval-uation factors as part of the consideration for purchase. “For military operations, we want jet and distillate fuels that are drop-in (compatible with existing infrastructure and platforms, and indistinguishable from conventional petroleum fuel to equipment operators),” Domen says.

The first alternative fuels purchased were synthetic paraffinic kerosenes made from coal and natural gas via the Fischer-Tropsch process in 2007. Two years later, the first alternative fuels made from re-newable sources–– fats, oils and greases via a hydroprocessed esters and fatty acids (HEFA) process––were purchased. From there, DLA-E has procured and delivered several additional emerging fuels made from various processes and starting mate-rials, including direct sugar to hydrocarbon jet and diesel fuel (also termed synthetic iso-paraffin), alcohol-to-jet (ATJ), hydro-processed depolymerized cellulosic diesel and most recently catalytic hydrothermoly-sis jet and diesel fuels.

Biofuels for large-scale operational use are currently being incorporated into DLA-E’s domestic bulk fuels procurement programs. Last year, they were solicited through the Inland East/Gulf Coast an-nual solicitation, and this year, under the Rocky Mountain/West Coast annual solici-tation. Both support the U.S. Navy and U.S.

Department of Agriculture Farm-to-Fleet initiative, whereby qualifying offers were eligible to receive a per-gallon production incentive made available via USDA funds.

Domen says for an offer to qualify for the incentive, the product must meet the requirements of either the Jet Propellent-5 Navy aviation fuel or the F-76 Navy ma-rine distillate fuel specifications, consist-ing of between 10 and 50 percent biofuel made from either the FT or HEFA process produced from one or a combination of USDA-approved feedstocks. They must also meet the GHG limitations as man-dated in the Energy Independence and Security Act. Outside of the Farm-to-Fleet program, offers for other types of aviation biofuel blends used by the military—JP-8, F-24, F-34, Jet A and Jet A-1—as allowed by the respective specification, will also be accepted in future solicitations. Contracts for alternative fuels to be used in military operations may be awarded whenever of-ferers can meet these fuel specification re-quirements and other solicitation require-ments.

The 2014 IEGC and 2015 RMWC bulk-fuel purchase programs were the first time DLA-E solicited for operational vol-umes of alternative fuels. The 2014 IEGC program did not award any contracts for biofuels, and the 2015 RMWC program is still under evaluation. If successful, these biofuel purchases will help the Navy ful-fill its 2016 Great Green Fleet goal of deploying a Green (Carrier) Strike Group composed of ships and aircraft that utilize biofuels as part of their regular, scheduled deployments.

The DLA-E could not provide spe-cific information about the response rate for these solicitations or speculate on the rationale for submitting or not submitting offers other than that under the IEGC program in 2014, the DLA-E received one offer for a biofuel blended F-76 and no of-fers for JP-5, and no offers were awarded. The current RMWC program is under evaluation. Contract awards for biofuels, if successful, are anticipated to be made at the end of September. “As long as alterna-tive fuels continue to play a larger role in the U.S. and the rest of the world, it’s prob-

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ably safe to say that DLA will play a larger role in purchasing alternative fuels for the military,” Doman says.

According to McAdams, there is only a limited number of biofuel companies currently making the fuels that hit military specification (MIL-SPEC). “We sort of have a chicken-and-egg thing going on here in terms of the military putting out procure-ment,” he says. “They put out procurement notices for alternative fuels or biofuels and the number of people bidding on them has been somewhat low, which reflects there are just not a whole lot of guys who can make the specs they need at this particular time. Additionally, you have a situation at the current time where the fuels have to be pretty much in the same cost ballpark as tra-ditional fuels.”

Gruber agrees with McAdams’ reason-ing for the limited response to these solici-tations. “There is a chicken-and-egg prob-lem,” he says. “As the military pursues this, the agency has a check box that requires that they come out and inspect a facility prior to being able to sign a contract. That’s a problem for anyone who has something new, because we all don’t have commercial plants.”

Gevo is currently working on secur-ing ASTM certification for its ATJ fuel, which should occur sometime in the next month or two, according to Gruber. “We expect military specification early next year, at which time we’d be able to compete for contracts,” he says. “We intend to put our-selves in a position so that we can compete to supply jet fuel to the Navy and make it competitively priced.”

Late last year, the Navy Fuels Team at Patuxent River, Maryland, tested and evaluated the performance of a 50/50 ATJ blend. According to Gevo, the F/A-18 testing is a significant milestone leading to MIL-SPEC. This MIL-SPEC would allow for commercial supply of ATJ fuel to the Navy and Marines Corps.

Although biofuels deployment in mili-tary operations has been slow, there has been progress, and in the long run, the military intends to use alternatives to meet renewable energy goals. “Will they do it in the long run? I think yes,” Gruber says. “To

what degree depends on the overall envi-ronment politically, economically and all the rest as to what rate of speed they adopt.”

McAdams says that with the industry in its early days, funding must come from the private community to build plants to create biofuels, and it’s a tough environ-ment. He believes now the financial and the regulatory climates need to be firmed up to provide certainty. “That certainty will lead to people being more likely to finance the building of the plants needed to pro-vide and make these fuels cost completive into the future,” he says. “The problem is we have not had an EPA that has been able to get its RVOs (renewable volume obliga-tions) out on time. It’s created a lot of un-certainty, which has had a direct, negative impact on the continued financing for the building of these plants.”

Last year, Red Rock Biofuels, Fulcrum Bioenergy and Emerald Biofuels were

awarded contracts under the U.S. DOD’s DPA to construct and commission biore-fineries that will produce a collective 100 MMgy of drop-in biofuels for military and private-sector transportation needs, for an average price of $3.45 per gallon. “The mil-itary has seen the importance of having the ability to have a portfolio of options and that is why the Navy has stayed strong in terms of trying to build these facilities of 10 million gallons or more to show that these kinds of portfolio options are available and that the fuels can be made to spec,” McAd-ams says. “We look forward to the finaliza-tion of those projects.”

Authors: Katie FletcherAssociate Editor, Biomass Magazine

701-738-4920 [email protected]


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