Blair Carter - Renewable + Law

Fish Farms?: Algae to Fuel Entrepreneurs Are Moving Up the Food Chain

bccarter@stoel.com (Blair Carter) — Wed, 12 Aug 2009 14:21:03 -0800

Today, the Wall Street Journal's Russel Gold reported that entrepreneurs are looking into massive algae blooms in the Gulf of Mexico that create "dead-zones" for sea life as a potential feedstock of algae for biofuel production. The dead zones are a result of run-off of fertilizers and other agricultural waste creating nutrient rich areas for algae to grow. Eventually, the algae sinks to the ocean floor where it is consumed by bacteria that, in the consumption process, also depletes the local oxygen. The sea life in the area either dies or swims elsewhere for its oxygen supply.

Apparently, LiveFuels Inc., a Silicon Valley start-up, is taking it to the next level. Instead of focusing on harvesting the algae from these dead zones to turn into biofuel, they are experimenting with releasing into these dead zones fish that would act as "algae grazers". The algae-stuffed fish would then be processed for their oil to produce biofuel. However, the algae blooms are seasonal and move around, so Russel Gold's article suggested that mobile fish farms may be needed.

Stoel Rives Sponsors the 2009 Algae Biomass Summit

bccarter@stoel.com (Blair Carter) — Thu, 06 Aug 2009 12:15:56 -0800

Stoel Rives, LLP has decided to sponsor the 2009 Algae Biomass Summit ("2009 ABS"). The Algal Biomass Organization ("ABO") is hosting the 2009 ABS in San Diego this October 7-9th. The event will take place at the Marriot San Diego Hotel & Marina.

This year's ABS will discuss the emerging issue of algae as a feedstock for biofuels and other products. In an earlier article (available here), oil giant Exxon-Mobil's $600 million investment into this area marks a significant upward trend of interest in this area. Exxon's investment involves a partnership with Synthetic Genomics, a biotechnology company founded by the genomics pioneer J. Craig Venter. Venter, along with other leaders in the algae biofuels world, will be attending the 2009 ABS, and will also be the opening keynote speaker.

Shortly after Exxon's announcement, the U.S. Environmental Protection Agency ("EPA") announced that it will measure the greenhouse gas impacts of algae-based biofuels in its final rule to implement the renewable fuels standard (for the article, click here). Algae as a renewable feedstock for biofuel is a hot area of development and those that are interested in getting involved and learning more about it, should consider attending the 2009 ABS.

Registration is currently open. Those interested in taking advantage of early registration prices must register for the 2009 ABS prior to September 1st.

Biofuels Still in the Spotlight: $6.3M for Biofuels Research

bccarter@stoel.com (Blair Carter) — Wed, 29 Jul 2009 11:17:24 -0800

Last week, U.S. Department of Energy ("DOE") Secretary Steven Chu and U.S. Department of Agriculture ("USDA") Secretary Tom Vilsack announced the winning candidates for up to $6.3 million in awards for research leading to improved use of plant feedstocks for biofuel production. The seven projects announced follow the green jobs and renewable energy Rural Tour event hosted by the two cabinet Secretaries in Virginia on the weekend of July 18-19. These investments are intended to further the Obama Administration’s efforts to broaden the nation’s energy portfolio while decreasing our dependence on foreign oil.

These grants will be awarded under a joint DOE-USDA program begun in 2006 that is committed to fundamental research in biomass genomics, providing the scientific foundation to facilitate use of lignocellulosic materials for bioenergy and biofuels. Since lignocellulosic crop plants are less intensive to produce and can grow on poorer quality land, competition with crops grown for food production is avoided. For more information on these awards, go to DOE's site for the DOE-USDA biomass genomics research program.

DOE will provide $4 million in funding for four projects, while USDA will award $2.3 million to fund three projects. Initial funding will support research projects for up to three years.

Perhaps the most amazing fact from this announcement is that Secretary Chu is on facebook! How does he find the time? This attorney is impressed. Check out his video announcement on next generation biofuels here.

EPA Shows Positive Interest in Algae

bccarter@stoel.com (Blair Carter) — Mon, 27 Jul 2009 14:06:07 -0800

From InsideEPA.com (reproduced essentially verbatim with the permission of the publisher Inside Washington Publishers):

EPA will measure the greenhouse gas (GHG) impacts of algae-based biofuels in its final rule to implement the renewable fuels standard (RFS) in response to growing interest in the renewable feedstock, including recent announcements by Exxon-Mobil (as noted in an earlier article) and Dow Chemical that they are undertaking separate projects to help commercialize the technology. Algae is a particularly tempting feedstock choice because it can be engineered to sequester large amounts of carbon dioxide (CO2) and because algae-based biofuel has a similar molecular structure to gasoline, allowing it to be used in the existing transportation infrastructure. These qualities could help the fuel sidestep controversy associated with corn-based ethanol, which some say cannot meet the CO2 reduction goals of the RFS and which, due to its corrosivity, can impact engines, pipes and fuel pumps.

EPA fuels official Sarah Dunham said the agency considers algae “a promising feedstock” that will be included in the final RFS rule. EPA issued its RFS proposal earlier this year to expand biofuels use in line with congressional mandates, and is taking comment on the proposal through Sept. 25. Dunham was speaking to a July 16 meeting of a National Academy of Sciences panel on reducing greenhouse gas emissions from the transportation sector. Algae-based fuels could be considered under the advanced biofuel or bio-based diesel portion of the RFS, according to the proposed rule.

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Advanced biofuels such as algae-based fuel and cellulosic ethanol are expected to supplement or possibly replace corn-based ethanol. EPA had originally planned to wait to include algae-based biofuels in the RFS, arguing improvements in harvesting, dewatering and lipid extraction were needed to make the fuel economically competitive with other feedstocks, according to the proposal. But the agency’s expected inclusion of algae in the RFS may help boost efforts to commercialize the technology of farming algae, using it to sequester CO2 and then turning the algae either into a biofuel or a chemical.

For example, Exxon July 14 announced its plan to invest $600 million in producing transportation fuel from algae in a partnership with Synthetic Genomics. The partnership would represent Exxon’s first foray into renewable fuels and could help stymie criticism that the company has dismissed concerns about global warming. Synthetic Genomics founder, J. Craig Venter, told the New York Times, “Algae is the ultimate biological system using sunlight to capture and convert carbon dioxide into fuel.”

Additionally, Dow announced June 29 a partnership with startup Algenol Biofuels to build a demonstration plant that would use algae to turn CO2 into a vehicle fuel or an ingredient in plastics. The process also produces oxygen, which would be used to burn coal more cleanly, allowing sequestration of the CO2 produced from the coal to be used to grow more algae. The Department of Energy (DOE) is also considering providing economic stimulus funding for the demonstration plant, that could produce 100,000 gallons of fuel a year, according to news reports.

On a July 20 conference call on development of algae for fuels and chemicals, sponsored by the Biotechnology Industry Organization, leading experts in the field discussed challenges and opportunities for commercializing the technology and how algae-based fuels can play a key role in climate change legislation pending in Congress because of its reliance on CO2. On the call, Ed Legere of Algenol Biofuels said the pending climate bill could vastly help spur the technology. “The game is changing politically and that makes a market for micro-algae,” he said, adding that any cost imposed on CO2 is “an opportunity for algae companies.”

Noting that CO2 capture and sequestration (CCS) systems to bury CO2 underground is an extremely expensive process fraught with technical and legal challenges that does not put the CO2 to use, Legere said using CO2 to produce algae-based fuel could be a win/win situation. For example, a power plant could put in an adjacent algae farm and use the CO2 to grow the fuel or use the algae to make other useful products, rather than spending $500 million for a CCS system that simply buries the CO2. A bonus is that the CO2 used for algae does not need to be compressed, saving additional money. “Forward-thinking companies are already looking at this,” he said. “If cap-and-trade is a reality at $30 a ton [of CO2 emitted], then large emitters are looking at hundreds of millions in costs coming their way.” However, Legere admitted that using CO2 generated from power plants to grow algae is still a long way off and that algae biofuels developers initially will seek to use CO2 streams from industrial processes that are cleaner than coal, with fewer toxins, and have a manageable flow rate of 5 to 100 tons an hour, rather than the 400 tons an hour released by a typical 500-megawatt coal plant.

Also on the panel, Steve Gluck of Dow noted that government support is vital to algae developers, who still need to overcome challenges of scale. Legere said in terms of renewable fuels the best thing the government can do “is not try to pick winners, so whatever policy they put in place they don’t pick who should benefit and who shouldn’t.” Gluck added that Dow is seeking to put algae on a level playing field with other fuels and hopes the government will be “responsive and quick” in deciding whether to allow genetically modified hybrid algae to be grown for fuel.

Additionally, Tom Byrne of XL Renewables said it appears the government is behind algae. In addition to EPA including it in the RFS, DOE July 15 announced up to $85 million in economic stimulus funding grants to develop algae-based biofuels, including the possible funding for the Dow demonstration plant. “So the U.S. is jumping behind it . . . seeing the potential. They understand not all the questions are answered yet but see it can be achieved,” Byrne said. XL Renewables has a 1.5-acre demonstration algae production facility in Arizona. Byrne said capital costs including harvesting and processing equipment are about $40,000 per acre while the company is harvesting about 25,000 tons of algae per acre but hopes to boost that to 100,000 tons. Additionally, he said algae-based biofuel would cost about 30-cents a gallon.

EPA's Region 10 Awards over $1.6M to Portland to Reduce Diesel Emissions

bccarter@stoel.com (Blair Carter) — Mon, 27 Jul 2009 13:42:37 -0800

Similar to the July 21, 2009 U.S. Environmental Protection Agency's ("EPA") Region 5 award, EPA's Region 10 has awarded over $1.6 million to reduce emissions from Portland municipal fleet vehicles and construction contractor equipment. The funds are provided under the American Reinvestment and Recovery Act of 2009 ("ARRA") National Clean Diesel Funding Assistance Program. Under this funding competition, EPA Region 10 received over 49 grant applications requesting over $80 million to help fund clean diesel emission projects.

In addition to reducing diesel emissions from municipal fleet vehicles and construction contractor equipment, this project will fund installation of fuel operated heaters--and idle reduction technology--on 247 vehicles in Portland and Multnomah County diesel fleets as a strategy for reducing diesel emissions while also decreasing fuel costs and climate pollution.

EPA estimates that this award will create or sustain an estimated 34 manufacturing and local installation jobs and will help Oregon municipalities and their contractors decrease operating costs by achieving fuel savings.

EPA Awards More Than $5.7M to Reduce Diesel Emissions and Create Jobs

bccarter@stoel.com (Blair Carter) — Tue, 21 Jul 2009 14:06:50 -0800

Today, the US. Environmental Protection Agency (the "EPA") Region 5 has awarded millions of American Recovery and Reinvestment Act of 2009 ("ARRA") dollars to the Wisconsin Department of Commerce and the American Lung Association of the Upper Midwest for the reduction of diesel emissions. The funds are provided under the ARRA National Clean Diesel Funding Assistance Program under which EPA Region 5 had received 81 grant applications requesting more than $211 million to help fund clean diesel emission projects.

To the American Lung Association, EPA Region 5 awarded $3.7 million for on-road and non-road diesel projects that will reduce diesel emissions for 502 vehicles in 22 public and private fleets, including school buses, long-haul trucks, short-haul trucks, construction vehicles and municipal vehicles. Technologies include repowers (engine replacement with cleaner engines), retrofits, and idle reduction. For information on the American Lung Association of the Upper Midwest, visit www.lungum.org.

To the Wisconsin Department of Commerce, EPA Region 5 awarded $2 million to help heavy-duty diesel truck owners reduce idling time. Using the Wisconsin Department of Commerce's Diesel Truck Idling Reduction Grant Program as a platform, this funding will help heavy-duty diesel truck owners purchase and install EPA-verified idle-reduction technologies. Technologies include auxiliary power units and generator sets, battery air conditioning systems, thermal storage systems, and fuel-operated heaters. At least 444 trucks will be impacted. For more information about the Wisconsin Department of Commerce program, visit commerce.wi.gov/bd/BD-CA-Diesel-Grant-Program.html.

ARRA alloted the National Clean Diesel Campaign a total of $300 million, of which the National Clean Diesel Funding Assistance Program received $156 million to fund competitive grants across the nation. ARRA also included $20 million for the National Clean Diesel Emerging Technology Program grants and $30 million for the SmartWay Clean Diesel Finance Program grants. For information about EPA's clean diesel initiatives, visit www.epa.gov/cleandiesel

Exxon Sinks $600M Into Algae-Based Biofuels in Major Strategy Shift

bccarter@stoel.com (Blair Carter) — Tue, 14 Jul 2009 15:31:58 -0800

Oil giant Exxon Mobil Corp., the world’s largest and richest publicly traded oil company, is making a major jump into renewable energy with a $600 million investment in algae-based biofuels. Exxon is joining Synthetic Genomics Inc., a biotechnology company founded by the genomics pioneer J. Craig Venter, to research and develop next-generation biofuels from sunlight, water and waste carbon dioxide by photosynthetic pond scum.

The partnership will last five to six years and will involve the creation of a new test facility in San Diego to study algae-growing method and oil extraction techniques. Exxon’s investment includes $300 million for in-house studies and potentially more than $300 million to Synthetic Genomics to scale up the technology for commercial production if research and development milestones are successfully met.

The partnership admits that it faces many obstacles, such as type of algae to use, the algae-growing environment, and the scale required for commercial use, to achieve this commercial production goal. Even in light of these challenges, algae holds many potential advantages over other sources of biofuels. One advantage is that algae grows in areas not suited for food crops, using pools of brackish water or even farming them in seawater. Additionally, algae needs carbon dioxide to grow, a benefit that could be used to help cut greenhouse gas emissions that cause global warming.

Treasury, Energy Announce More than $3 Billion in Recovery Act Funds for Renewable Energy Projects

bccarter@stoel.com (Blair Carter) — Thu, 09 Jul 2009 11:04:10 -0800

Today, the U.S. Department of the Treasury (the "Treasury") and the U.S. Department of Energy (the "DOE") announced an estimated $3 billion for the development of renewable energy projects around the country. Funded through the American Recovery and Reinvestment Act ("ARRA"), the program will provide direct payments in lieu of tax credits in support of an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities.

ARRA authorized the Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009. A company can only apply for payment after the renewable energy property has been placed in service. Previously these companies could file for a tax credit to cover a portion of the renewable energy project's costs; under the new program, applicants would agree to forgo tax credits down the line in favor of an immediate reimbursement of a portion of the property expense. This direct payment program allows for an immediate stimulus in local economies.

In recent years, the tax credit has been widely used. As an example, in 2006, approximately $550 million in tax credits were provided to 450 businesses. However, the rate of new renewable energy installations has fallen since the economic downturn, as projects have had a harder time obtaining financing. The Treasury and DOE expect a fast acceleration of businesses applying for the announced energy funds in lieu of the tax credit.

To expedite implementation of the program, the DOE and Treasury have made the terms, conditions, guidance, and sample application available at www.treas.gov/recovery/1603.shtml. The Treasury and DOE are not accepting applications yet, but these available forms will allow companies to prepare applications and expedite the implementation of the program when the government is ready for submissions on August 1, 2009. The DOE and Treasury have 60 days to process the application once submitted.

Nuclear Theory Research Funding Opportunity Announcement

bccarter@stoel.com (Blair Carter) — Wed, 08 Jul 2009 15:20:55 -0800

On June 29, 2009, the Office of Nuclear Physics, Office of Science, and Department of Energy (“DOE”) announced a Funding Opportunity Announcement (“FOA”) providing for $6 million for collaborative research projects between universities, non-profit organizations, and Federally Funded Research and Development Centers, including the DOE National Laboratories, to focus on theoretical research topics of nuclear physics.

DOE intends on awarding two to three topical collaborations starting in Fiscal Year 2010. These topical collaborations will typically be supported at $300,000 to $500,000 per year, although applications with smaller funding requirements will be considered. Each application should specifically address the following:

· The opportunity afforded by the proposed research, its relevance to the Nuclear Science Advisory Committee (“NSAC”) Performance Measures, and opportunities identified in the NSAC long range plan;

· The specific goals of the collaboration, as well as a timeline and milestones for reaching those goals;

· The relevance and impact of this opportunity on experimental nuclear physics; and

· The opportunities for training and placing permanent researchers in nuclear theory.

Applicants interested in this FOA must submit a formal application by September 1, 2009. For more information on applying, go to http://www.science.doe.gov/grants/Colab.html.