Pioneering Technology to be Used at Cellulosic Biobutanol Refinery

by Bruce Goodman, Energy Lawyer 

Cobalt Technologies and American Process Inc. have agreed to build the world’s first industrial-scale cellulosic biorefinery to produce biobutanol in Alpena.  The continuous fermentation and distillation technology will convert cellulosic biomass feedstock into fermentable sugars that will be used to produce ethanol and biobutanol.  The biobutanol can be used “as is” in paints, coatings and blended with gasoline, diesel and ethanol, or it can be converted into bio-based plastics or full performance jet fuel.  Ethanol production will begin in early 2012, with a switch to biobutanol later in the year.  Funding for the project includes grants of $18 million from the U.S. Department of Energy and $4 million from the State of Michigan.

If I Ruled the World (or maybe just the State)

by Bruce Goodman, Energy Lawyer

Five elements to include in an energy policy for Michigan:

BIOMASS ENERGY: Make use of the energy in biomass that is going to waste in this state. The BTU content of the “unused biomass” in the state of Michigan is enormous. 

ENERGY EFFICIENCY/CONSERVATION: Make better use of our existing energy resources. Because our energy costs are so low, citizens and industry are not very aggressive in avoiding the “waste” of electricity and fuels. Increasing the price of energy (a carbon tax would be a start with a redistribution of the revenues to accomplish energy efficiency) is an option that deserves serious consideration.

DEREGULATION/CUSTOMER CHOICE ON ELECTRICITY: Reintroduce competition into the purchase and production of electricity. The deregulation of Michigan’s electric industry which was begun in 2000 was reversed in 2008. Just as competition in the telephone industry drove down prices and fostered innovation, the same competitive effect could drive Michigan’s electric industry.

ENCOURAGE ELECTRIC VEHICLES: Make electric cars work in Michigan. The state has placed a huge bet on the success of the electric vehicle industry; it is time to lead the nation in electric vehicle ownership. State government should fill its fleets with electric vehicles and the infrastructure for electric vehicles needs to be built out. Consider tax incentives for vehicle purchases.

BE A MODEL FOR RENEWABLE ENERGY: Made-in-Michigan renewable products and technology could lead the world. Michigan already is a leader in the solar energy field with Hemlock Semiconductor and  United Solar Ovonics; we need to demonstrate how this technology can be adapted for integration into buildings, the electric grid, and society. Similarly, Michigan has fledgling biofuels, biomass, wind, and geothermal industries and technologies that need to be strongly encouraged, whether with grants, tax incentives, or other assistance. To make Michigan a showcase for the implementation of these technologies, we need a larger renewable portfolio standard (from 10 percent to 25 percent) and the removal of barriers to self generation (i.e.  unreasonably high standby rates and unreasonably expensive interconnection charges).

These may not be the top five, but they deserve to be near the
top of the list.

Biofuel Catalyst Technology Funded

by Bruce Goodman, Energy Lawyer

NextCAT, Inc, a Wayne State University startup company, has received a Phase II Small Business Innovation Research Award of $498,830 from the National Science Foundation. The goal of the company is to commercialize a catalyst that will cost effectively convert waste vegetable oil, animal fats, and residual corn oil into biodiesel fuel. Economic projections are that the catalyst would provide a production cost savings of at least one dollar per gallon, dramatically changing the economics of a biodiesel plant.

VA Facility Signs Contract for Biomass Gasification

by Bruce Goodman, Energy Lawyer    

The U.S. Department of Veterans Affairs Medical Center in Battle Creek has signed a contract with Nexterra Systems Corp. of Vancouver, British Columbia, to design and construct a biomass gasification system to provide heat and power. The 28 MMBtu/hour project will supply 14,000 pounds of steam per hour and 2 MW of electricity, with greenhouse gas emissions being reduced by 80 percent. The electrical production will furnish about 85 percent of the medical center’s demand. The combined heat and power unit will use locally-sourced residual biomass.

President Gerald R. Ford had an Energy Vision

 by Bruce Goodman, Energy Lawyer

On his last day in office, January 19, 1977, President Gerald Ford issued a clarion call on energy: 

“America cannot permit the excessive delays associated with the commercialization of unconventional energy technologies.  New production is essential.  Our national security and economic well-being depend on our ability to act decisively on energy.”

More than three decades have passed since President Ford and his energy czar, Frank Zarb, worked to develop the nation’s first comprehensive energy policy and put the United States on the rocky road to rethinking energy technology.  At the time the first energy policy was developed, Ford’s administration was responding primarily to the oil embargo crisis of the early 1970s.  A major goal was to drive the amount of imported oil used for transportation down from the then-current 35 percent of national consumption.  Despite the President’s warnings, and the recognized negative influence that oil dependency has on foreign policy and defense policy options, current statistics show that 49 percent of our oil consumption is from foreign sources.

As to the production of electricity, since Ford’s call to action some of the “unconventional energy technologies” have matured, and some have not.  While unlimited fusion energy remains a far-off dream, renewable energy technologies are being deployed.  Wind energy has gained a strong foothold in our nation’s energy portfolio, and solar energy is finally on the brink of becoming a major energy source.  Bioenergy, in a variety of forms, has both near-term economic applications and long term possibilities, such as airplane fuel from algae.

Under President Ford’s leadership and Frank Zarb’s foresight, the Energy Research and Development Administration was created as part of the Energy Reorganization Act of 1974. This agency, which was replaced three years later by the Department of Energy, was an important step in bringing together the diverse energy activities across the federal government.  It produced a series of national energy plans that advocated experimentation and energy leadership to stimulate private-sector commercialization.

So where are we on President Ford’s vision thirty-four years later? The alternative energy effort had plodded along with the help of National Renewable Energy Laboratory (another offspring of the Ford Administration’s pioneering efforts) and a mixed bag of partial governmental energy policies still aiming for the “commercialization of unconventional energy technologies.”  No one can doubt the government’s role is critical.  As with many new technologies that have yielded benefits across the nation over time, such a large undertaking requires “encouragement”.  The Union Pacific and Central Pacific railroads were given twenty square miles of land plus mineral rights for every mile of track built as the encouragement that ultimately led to the interstate railroad system (and tangentially to the development of the steel industry).   The fledgling airline industry was able to grow due in large measure from the U.S. post office paying to carry the mail at rates which allowed the growth of passengers carrying capacity.  Oil and gas companies lease federal lands at rates intended to encourage these industries.  Who can argue that these governmental policies have not been important to the nation’s overall economic development and ultimate strength and well-being?  

Electric utility companies are not going to voluntarily adopt renewable energy technologies merely because they will improve air quality (and thus national health) or because they will utilize abundant, locally available, and free resources (such as the energy of the wind and the sun) or because they will improve national security (through distributed generation and providing transportation alternatives to imported oil).  No, a national energy policy, such as the one envisioned by President Ford, is needed to further encourage and drive renewable energy technologies.  Just as seat belts and air bags would likely not have reached the marketplace without governmental requirements, and gas mileage improvements were not on the horizon until governmental standards were devised to drive innovation, a national energy policy is needed to finally realize the goals of unconventional energy technology implementation envisioned by President Ford.

On Tuesday, September 20, Frank Zarb will in Grand Rapids to give a free lecture at 7:30 pm at the Ford Museum entitled:  Our Most Important Policy Failure – Energy. If you would like to attend, please contact the Gerald R. Ford Presidential Foundation at events@38foundation.org or call 616-254-0393 to reserve your seat.

MSU Awarded $7.2 Million for Biofuel Research

by Bruce Goodman, Energy Lawyer 

The U.S. Department of Agriculture has awarded grants totaling $2.9 million for three biofuel projects at Michigan State University. The research projects involve: categorizing the greenhouse gas emission benefits of woody biomass energy, studying the pests that affect grasses used for bioenergy, and identifying the ways to use biofuel production byproducts. The U.S. Department of Energy has separately awarded $4.3 million to the Michigan Biotechnology Institute (MBI) to support similar work involving the conversion of non-food renewable resources into energy. All the funded research will involve MBI, the Lansing-based non-profit entity that is part of the MSU Foundation aiming to help prepare bio-based technologies and innovations for commercial use.

Airport Cropland

by Bruce Goodman, Energy Lawyer

Michigan State University Extension Office and the operator of Detroit Metropolitan and Willow Run Airports are partnering to grow, harvest and process bioenergy crops. Demonstrating a commitment to sustainable aviation, the project will initially utilize 3 acres of the 1,700 acres available to grow crops such as canola and oriental mustard seed. Airlines and ground support vehicles at the international airport use more than one million gallons of jet fuel each day. Partial support for the project is provided by a $476,000 grant from the Michigan Economic Development Corporation; the grant also covers other potential sites for bioenergy crops, such as vacant urban lots and highway right-of-ways. MSU Extension will manage the project.

Short Distance Energy – Michigan’s comeback prescription?

by Bruce Goodman, Energy Lawyer

Energy security and the revitalization of Michigan’s economy are objectives that clearly intersect. Producing more Michigan energy with more in-state resources achieves both goals. This confluence of objectives will spur the “economic gardening” that will ultimately lead to more exports of Michigan goods and services to other states and the world. Distributed solar, biomass, hydro, and wind generation projects use local resources to generate energy where it is needed. Energy produced close to its end use with resources at hand—what could be more secure than that? Reduced line losses will make up some of the additional costs for this energy security. It is encouraging that the MPSC’s recent interpretation of the 2008 energy statute rejected a lowest cost energy strategy in favor of increased generation diversity. This means Michigan utilities can pay a little more for their electricity if it means more secure distributed energy from more in-state fuels (wind, solar, biomass). This could send a strong message to the energy sector of Michigan’s manufacturing and innovation communities. Unfortunately, although energy security and innovation receive a great deal of political lip service, translating it into policy and sustained action seems to be a step some are not ready to take.

Waiting for ARPA-E Conference to Commence

by Bruce Goodman, Energy Lawyer

The main events for the second annual Advanced Research Projects Agency – Energy (ARPA-E) Conference start tomorrow, March 1.  I have checked into the Gaylord National Convention Center Hotel and perused the agenda.  How exciting!  Topics ranging from rare earths to advanced fuels to zero carbon power will be discussion topics.  This is America ingenuity at its best.  Efforts to attract talent, both foreign and domestic, to the energy challenge.  Funding cutting edge research and development, knowing that some will fail miserably, but hoping a few ideas succeed spectacularly.  It is Sputnik time again for the United States.  Let’s hope we respond as successfully.

U of M Works on Biodiesel from Algal Biomass

by Bruce Goodman, Energy Lawyer

Researchers at the University of Michigan have taken another step towards unlocking lipid-rich algae’s potential as a viable feedstock for biodiesel production. They have developed a two-step process that can produce biodiesel directly from wet algal biomass without the need for costly and energy intensive dewatering and drying. The method involves hydrothermal treatment of an algae paste followed by filtration and treatment of the solid with an alcohol.