GoodFuels

Shocking Report About Energy Subsidies

The Environmental Law Institute (ELI) has published shocking news in a new report: federal subsidies for fossil fuels are twice that of renewables.

According to a summary on the ELI report store website:

The largest U.S subsidies to fossil fuels are attributed to tax breaks that aid foreign oil production, according to research released by ELI. The study, which reviewed fossil fuel and energy subsidies for Fiscal Years 2002-2008, reveals that the lion’s share of energy subsidies supported energy sources that emit high levels of greenhouse gases. Fossil fuels benefited from approximately $72 billion over the seven-year period, while subsidies for renewable fuels totaled only $29 billion.

ELI Senior Attorney John Pendergrass says the report indicates a lack of support for more environmentally friendly energy sources. “The combination of subsidies—or ‘perverse incentives’— to develop fossil fuel energy sources, and a lack of sufficient incentives to develop renewable energy and promote energy efficiency, distorts energy policy in ways that have helped cause, and continue to exacerbate, our climate change problem,” Pendergrass said in a press release. “With climate change and energy legislation pending on Capitol Hill, our research suggests that more attention needs to be given to the existing perverse incentives for ‘dirty’ fuels in the U.S. Tax Code.”

Not surprisingly, the oil industry is disputing the report’s findings. “This study is an irresponsible rendition based on a contorted recycling of government data that should never be used to craft national policy - especially a tax increase on the oil and natural gas industry that would raise energy costs and kill jobs,” said American Petroleum Institute President Jack Gerard in a statement.

Irresponsible? Or just the truth? You be the judge. Download the report for free here.

Ethanol Could Evolve From Pond Scum

Making ethanol from algae is getting some national media attention lately, with one story making it an industry controversy and another already denigrating a process that is still in the research stage.

The NYT Greenwire blog headline reads “Ethanol Producers Warily Eye Algae’s Bloom” and has ethanol producers “being a little defensive” over the idea that fuel can be made from pond scum. CNN calls it “Green Goo Biofuel” and happily spreads the notion that algae fuel “still creates pollution when burned, like regular fuel.”

Both articles seem to confuse the use of algae to make biodiesel, which is relatively easy and is being done by several companies, or a next generation ethanol-type fuel - which companies such as Algenol Biofuels are working to perfect. Algenol has partnered with Dow Chemical, the National Renewable Energy Laboratory (NREL), and Georgia Tech on technology that uses CO2, salt water, sunlight and non-arable land to produce ethanol.

Whether it will work commercially remains to be seen, but as Matt Hartwig with the Renewable Fuels Association points out in the NYT article, ethanol is paving the way for newer technologies and there’s plenty of room for everyone.

“We’re not talking about an industry left in dust, but rather evolving and becoming part of the solution,” Hartwig said. “We’re going to need it all. This isn’t a situation where we need to rob Peter to pay Paul. We should expand research and development for all technologies to really achieve our goals of energy security.”

Report: Airlines should use 80% biofuels by 2050

According to a Gas 2.0 post today, a British think tank recommends that airlines drastically reduce their greenhouse gas emissions and up their biofuel use.

The study, called ‘Green Skies Thinking‘, was published today by right wing think-tank Policy Exchange, and advocates the phase-in of an EU Sustainable Bio-Jet Fuel Blending Mandate by 2020, which would force aviation companies to commit to a rising proportion of jet fuel from sustainable bio-jet fuels.

The study also mentions that advanced biofuels should be the focus of development.

Gas 2.0 summarized the report with these key recommendations:

• The introduction of a EU Sustainable Bio-Fuel Jet Mandate, starting from 20% of aviation fuel in Europe being sourced from or blended with bio-fuel in 2020 and rising to 80% in 2050. The report claims this could reduce EU aviation sector carbon emissions by 60% by 2050 and save the UK £37.41 billion between 2020 and 2050.
• Minimising the cost of supplying sustainable bio-jet fuels to ensure its production cost drops to around $80 a barrel by 2030, and $70 by 2050, which the report says compared well with the average jet fuel price between 2000 and 2008 of $62.29.
• An increase in UK support for companies conducting research and development (R&D) into producing sustainable biofuels; in particular increasing the current R&D tax credit regime to include companies researching bio-jet fuels. Along with further tax support for the sector, it claims the support would cost less than £5 million a year.
• Charging the Renewable Fuels Agency, which administrates the Renewable Transport Fuel Obligation, with the task of drawing up and enforcing standards to ensure bio-jet are produced sustainably and reduce greenhouse gas emissions.

Ethanol to power planes for SD airshow

One team performing at this weekend’s Sioux Falls airshow will have a little something extra powering their planes - ethanol!

The “Vanguard Squadron” has been flying on ethanol since 1993.

“It’s just a hoot and you get to show off….” Left wing pilot Steve Thompson has 21-thousand hours flight time. He says their ethanol powered planes are more than good marketing. Thompson says ethanol allows the plane’s engines to run cooler. “Because it runs cooler it allows you to pull more power out of the engine.”

Even though they’re doing stunts flying at high speeds in the air, the team has complete faith in each other.

And as for getting scared in the air, Steve Thompson says it’s not an issue for him. “I can’t remember the last time I got scared in an airplane.”

Ethanol can power more than just cars. Congratulations to the Vanguard Squadron team for utilizing home-grown, renewable fuel. Good luck this weekend!

Click here for more information on the Sioux Falls Airshow.

Photo by geoff.agombar.

Algae for ethanol in Texas

According to the Detroit News, Dow Chemical announced yesterday plans to build a biorefinery that would use algae to convert carbon dioxide into ethanol fuel.

The company hopes to replace carbon dioxide in common plastic products like milk jugs if the technology is successful.

Through a partnership with Algenol Biofuels — a startup in Bonita Springs, Fla. — Dow hopes to create a breakthrough process to produce ethanol, a building block for other chemicals. Ethanol is a key ingredient in polyethylene, the most widely used of all plastics, which is found in everyday products, from food packaging to pipes. The chemical also is used in runway deicers, polyester for textiles, and paints.

The move could have significant implications for Detroit’s automakers, according to Algenol Chief Executive Paul Woods. Woods said he already has met with representatives from Ford Motor Co. to discuss manufacturing more vehicles that would use ethanol. The algae-generated ethanol is compatible with technology in use.

The article goes on to mention that the algae-based fuel’s price would be more consistent, selling for $1 per gallon.

Speaking about ethanol, Algenol Chief Executive Paul Woods said “if we can produce a gallon cheaper than any foreign producer, it’s enough to eliminate OPEC producers. We want a low, long-term, stable price that the consumer can rely on.”

Sounds like a job for ethanol.