Tuesday, March 25, 2008

Biodiesel Auction Site Opens, Branson Hosts "Hot" Party, New Solid Catalyst is FAST!!

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Partial Index to articles by Stafford "Doc" Williamson

Okay, I admit I am confused, not that a state of confusion is all that unusual for me, but my head is swimming a bit trying to figure out if "history is about to repeat itself" or "yesterday was a lost weekend that lasted a week." If that didn´t clarify the situation much for you, welcome to my world, today, at least.

The events to which I am referring involve a gentleman who seems to have no difficulty setting heads to spinning. Indeed depending on your age and gender, his good looks alone I am sure have set many a heart aflutter. Combine that with his long standing success and even relatively longstanding billionaire status, and the man is doubtless the dream date of billions of people around the world. I am talking about Virgin Group chairman and CEO, Richard Branson.

Pardon me, more properly that would be "Sir Richard Branson", which also is not a recent development in his astounding career and accomplishments. It doesn´t hurt that his first major successes were in the music industry where a string of hits is practically a license to print money, but he has spread his success across the globe and all kinds of industries such that now one of his most visible assets is Virgin Atlantic Airlines. I mentioned recently that he had successfully flown a 747, or rather his company, in cooperation with Boeing flew a B5 biofuel blend in one engine of this test flight. Meanwhile he also announced that he made a deal with Rolls Royce (the British company that makes beautiful cars, but also makes powerful jet engines) that he would use those engines in the 787´s he had ordered from Boeing, provided that they continue to research biofuels for those "Trent 1000" engines. (The size of his order, US$2.6 billion, no doubt set some hearts aflutter at the Rolls Royce company, while his loyalty to British industry probably gave Queen Elizabeth another reason to be proud that she had recognized him with a knighthood for prior acts of national economic significance.)

Now, if you are one of those "glass half-empty" people, you could see him and all of his commercial, manufacturing and transportation ventures as one of the great [evil] pollution contributors of our times. The half-full glass people should be able to also recognize that the man is practically a one-man army against the forces of global warming. He keeps making appearances in my column because he is not merely "hedging his bets", (though no doubt he is doing that too) but he is diligently seeking solutions to the problems of green fuels and clean, or at least cleaner, transportation. In addition to his deals with Boeing and Rolls Royce, he has invested in biobutanol research and development (a far more attractive candidate because of its compatibility with existing vehicle fueling infrastructure, than ethanol) and has committed all the profits from his transportation businesses for the next several years to R&D on clean fuels.

While I am not, myself, swooning over Sir Richard´s good looks, or even his bank account, he was at the center of my dizziness recently because it was just a couple of days ago that I read somewhere that a distant acquaintance had been invited to attend some sort of "retreat" with Sir Richard on his (private) island in the Caribbean, along with some other people with whom I have at least a passing familiarity as prominent figures in Internet marketing circles. Since that person and I have a mutual friend (okay, my "friend" is more of an acquaintance, too, really) I wrote my "friend" a note yesterday about bringing up some issues of green energy and biofuels in particular if he too was going to be attending this little party. I was prompted to write because yesterday I came across an article which mentioned that Sir Richard is also interested in yet another aspect of "green" fuels that is a particular interest of mine.

Today, however, my head is doing a Linda Blair impression (in The Exorcist for those of your not old enough to recognize the reference, her head appeared to turn a complete 360 degrees or more because her character was "possessed").

The reason is simple, either I did not recognize that the "retreat" on Sir Richard´s island (actually he owns two, one called "Mosquito" for its tiny size, and another called "Necker Island", although I don´t know the origin of the second name ;o) ) would happen so soon, or I failed to notice that the mention of the gathering was not as fresh an entry as I had assumed at the time that it was mentioned. In any case, it does almost seem incumbent upon me to tell you that the meeting did, apparently already take place, and that those in attendance were, indeed, the glitterati of the Internet. The International Herald Tribune covered the event in a brief story. Andrew Ross Sorkin wrote, "What he [Branson] wanted to know was whether his high-powered visitors, among them Larry Page of Google, Jimmy Wales of Wikipedia and Tony Blair, the former British prime minister, thought global warming threatened the planet." Also in attendance was Elon Musk, the co-founder of PayPal, and current backer of Tesla Motors, maker of the sexy US$100,000 all electric sports car (a bargain by Ferrari pricing standards, with similar performance some reports say).

Also attending was D. Hunt Ramsbottom, CEO of Rentech, a company specializing in Fischer-Tropsch conversion of conventional fossil derived hydrocarbon sources into jet fuel. They are, apparently, trying to adapt to the way the economic "wind" is blowing by adding biomass to the various feedstocks they currently use, but the commonality is that they aim to output fuels suitable for jet engines by upgrading the output of the F-T with a further differentiation (presumably differential distillation, though their website was not explicit on this point). Also in attendance was venture capitalist extraordinaire, Vinod Khosla, still singing the praises of ethanol (cellulosic, of course) but the reporter also noted that Mr. Khosla´s investments now encompass some 33 different ventures in the green technology field. Talk about bold and adventurous venture capital lending! Mr. Khosla definitely deserves highest marks for being open to the possibilities and is very likely to be a major influence in shaping the future, whatever that may bring. Good luck to him, as always.

BTW, Rentech says it prefers iron as the F-T catalyst because it isn´t prone to "poisoning" as is cobalt if impurities are contained in the feedstock.

But that is not what I wanted to talk about with respect to Sir Richard. What I found fascinating this week was a note in an article highlighting the initiation of fuel-cell shuttles in an experiment with ferrying Virgin Atlantic´s first class passengers to their planes in Los Angeles and later New York and Washington, D.C. Putting a few hydrogen fuel cell vehicles on the road these days is barely newsworthy, were it not for Sir Richard´s high public profile. Nope, what caught my eye was that Sir Richard, like me, and a few others, is a poop fan.
Yes, Sir Richard spoke of negotiations near and dear to my own perspective on future green fuels. "We're talking to a lot of sewage plants about setting up algae plants above and using a lot of the CO2 coming off those sewage plants" to feed the algae. The creation of less CO2 output from sewage as well as creating biodiesel feedstock (and biomass, if it were to be a well integrated operation) is as Andrew Ross Sorkin reports Mr. Branson called it, a "double-whammy".

What I wanted my friend to point out to Sir Richard was that his "double whammy" is good, but that the paradigm for this century is not just, "Don´t throw the baby out with the bathwater, but recycle the bathwater too!" In this case, of course, the figurative bathwater is the sewage itself. While I prefer the thermal depolymerization route, I recognize that there clearly are several methods that could be employed to turn the actual sewage sludge into energy in general and to liquid fuels in particular. It also seemed like, with Sir Richard´s strong advocacy of "greening" the transportation business that he would be a potentially strong ally in a plan to spread this technology worldwide. I remain hopeful that the conference that has already taken place was just the first in a series and that more discussions with other "netrepreneurs" will still happen in the next few weeks. I certainly hope that someone will pass along my story to him. Babies, bathwater and sewage are all precious resources, and two of them even smell alike a good deal of the time.

Credit where credit is due, the "Project Driveway" (the shuttles for Virgin Airlines) is actually planning on putting a total of 100 Chevy Equinox fuel cells cars into the pilot project, not just "a few".

Also, new to the "scene" of green energy and biofuels is a new website that is still relatively unknown and not much trafficked, but that may have some potential. Fillmorefuels.com is aiming, it seems, to become the eBay of biofuels. Perhaps more of "Craig´s List", (on a smaller scale at the present time, but who knows what the future may hold for them), they offer buyers and sellers of biofuels (biodiesel and ethanol, at least), feedstocks, acids, catalysts, processors, and algae (and equipment) and even glycerol and educational products to list their items in an auction style listing section. They also have a small community forum area, and have seeded from early participants, some interesting topics including a discussion of a homegrown algae bioreactor. Take a look and see for yourself.

The news of the week comes Augsberg College, possibly the one thing with the most immediate potential impact is the announcement from Augsberg College that a student there inspired the creation of an improved conversion process from vegetable oil into biodiesel. What began as a summer project and curiosity on the part of Brian Krohn (now 21 and a senior at the college) turned up some fundamental research that led to the discovery of a process that uses heat and pressure and an innovative solid catalyst to quickly (extremely quickly, just 6 seconds in this pressure cooker) turn raw vegetable oil into biodiesel.

The project was taken over by senior researchers and commercialized as the McGyan process (a combination of the letters of the entrepreneur and scientists names). Unlike the platinum catalyst used in some petroleum distillation columns, this solid catalyst is fairly cheap and almost as plentiful as glass (which, coincidentally it resembles in appearance). The developers, Augsburg College Science Professor Arlin Gyberg, Ben Yan and Clayton McNeff, say it lowers the cost of production by about US$2 per gallon compared to conventional processing, and will accept feedstock with high levels of free fatty acids (they say, up to 20%, too high for conventional processing) yet processes it 100% into biodiesel. Because it is a "dry" process it needs no "wash" to remove water and the glycerol and fuel are relatively easily separated. They estimate that their 4 inch by 24 inch reaction chamber can produce up to about 3 million gallons per year because of the extremely short resident time, and as if all of that good news wasn´t enough, they say the process will also convert glycerin into dimethyl ester (DME). With just 6 seconds residence time, the process could easily be virtually (or with paralleling, even actually) continuous flow, rather than mere batch. The half gallon chamber capacity is even large enough that by designing for multiple processors could keep both capital cost and maintenance to a minimum with little or no down time should repairs be required. Even Rumblestiltskin would probably be impressed.

Candidate Senator Barack Obama´s speech this week was a triumph, but perhaps not enough to triumph over the shortcoming it attempted to address. Far too many Americans are reluctant to forgive people for making "un-American" remarks. Back in the day, as they say, Senator Joseph McCarthy didn´t "sell" the witch-hunt he was conducting as, "The Congressional Committee on Communist Activities", he used the phrase, "Un-American Activities". It is a side effect of being steeped in such a strong tradition of national pride that borders on hubris that it could even be the leak that bursts the dam on the rising tide of pro-Obama sentiment in the country.

The media, meanwhile, though reluctant to give up on what they have perceived as a very saleable set of controversies and battles between the Democratic Candidates, are all but burying Senator Clinton´s chances of ever achieving the front runner position in the race again. They talk about how a 60-40% win for the Clinton campaign in Pennsylvania would barely make any difference in the delegate count. I have to concede that the chances are fast becoming mathematically slim, but slim is not none, and even if Senator Clinton´s campaign is forced to accept a 50-50 split in delegates from Michigan and Florida, it is not impossible (despite the pundits´ predictions) that an overwhelming majority may reject Senator Obama, just because he has had this, and potentially other vulnerabilities to attack from a far less charitable Republican Presidential campaign. The possibility is not as remote as a lightning strike, or an earth destroying meteor, because it is possible that Senator Clinton could emerge with spectacular victories, unimaginable to the media, like a series of 80-20% wins in all the remaining primary contests.

I am not predicting it, but counting the Clinton campaign out before the counting is done, is clearly premature.


Love

Stafford "Doc" Williamson

p.s. Get the latest biofuels videos and news at http://winfotech.com/energy/













Tuesday, March 18, 2008

Farmers High on Soy, Biodiesel Makers Not so Much, Brazil and S.A. Boom, Alabama Gets Texas Oil


The economics of soybean oil for biodiesel has committed market suicide. Even with rising gas (and diesel) prices, it is nearly impossible to make a profit from biodiesel production with soy oil as the feedstock. At least that is the conclusion of someone a lot closer to the ground than I am. The Farmers' Guardian published a story dated March 14, 2008 saying, "Two years ago soy oil was in the low 20s (cents per pound),"” says Ed Ulch, a soybean farmer from Solon, Iowa. "Now it’s 52 cents per pound. The break-even price for these biodiesel plants is 43 cents."

Now, in truth, I don't necessarily subscribe to the above stated conclusions, but considering other feedstocks (as the story goes on to discuss, including using rapeseed (canola), animal fats and waste fryer grease) is an essential strategy for survival of the many biodiesel production facilities that are still springing up like toadstools all around the world. Indeed, biodiesel producers have to realize that even if they find a much cheaper feedstock today, the demand for their product is rising so fast that the primary feedstock of tomorrow will rapidly rise in price, too, in all likelihood. By all means we need to turn more attention (and quickly, I might add) to jatropha, neam, and perhaps even cellulosic biodiesel (umm, I think that one would be one we'd have to call "synthetic diesel" according to the technical definitions that exist today). But beyond that, we need to turn our eyes (again, rapidly) toward the one biological source that appears to hold the most promise, which is algae.

On the other hand, the evidence is in that at least some biodiesel facilities are grinding to a halt as a result of the rising price of soy oil. The Albert Lea Tribune (in Minnesota) reports that the Board of Governors of SoyMor Biodiesel LLC are suspending the production of biodiesel at this time in hopes of preserving the longer term health of the company that employs 30 people. This source quotes soy oil pricing this way: "The Chicago Board of Trade closing price Friday for March soybean oil was 62 cents per pound; January soybean oil closed at 64 cents." Which a SoyMor spokesman called 10 cents too high to be viable. (Seems that the SoyMor spokesman and Mr Ulch, at least, can agree.) Yet they remain optimistic in the true tradition of mid-Western farm communities. Board Chairman Gary Pestorius, is also quoted as saying, "High prices cure high prices."

Clearly there are signs that businesses still have faith that soy can be a viable route for biodiesel. In South Africa, EngineeringNews (of South Africa) reports a R1.5 billion (US$213 million) biodiesel plant has been announced, claiming expected operational date some time in late 2009. Investors in this company are mainly from Australia, and have not yet sold an interest [as required by law] to South Africans, but, "Rainbow Nation Renewable Fuels (RNRF) was in the "final stages" of applying for a licence from government to produce 288-million litres a year of biodiesel from a R1.5-billion plant it was building at Coega in the Eastern Cape." Although the company has targeted domestic crops of soy from the South African nation as their eventual feedstock, they anticipate that they will initially be importing much of the required 250,000 tonnes a year since the entire domestic soybean crop is approximately just 300,000 tonnes per year according to the Engineering News report. Another company, LG Biodiesel has announced what, "they believe is a first in South Africa, a fully self contained and mobile Biodiesel manufacturing unit." It may well be the first in South Africa, but there are numerous versions available around the world. However, "the news" IS what you can get reported, so I guess it is newsworthy, or at least the price of R80,000 (which is just US$10,000) does seem like it might be viable for the purpose for which it was intended, which is to provide locally generated fuel for local electric generation in "off grid" remote locations. Provided local farmers are willing to grow the oil crops necessary, this really is likely to be the long term hope for eco-friendly modernization in much of Africa. While these mobile, trailer mounted units can provide fuel to power electric generators in isolated regions, they could also be used to accelerate development of villages as suburbs of the larger metropolitan regions too, temporarily extending the reach of electric services in advance of the arrival of a more interconnected power grid. There are those, too, who see the future of electric power as residing in distributed generation capabilities in general, and the addition of "smart grid" architecture is a hot topic in Europe at the moment.

Reportedly Brazil is considering advancing the target date of B5 manadatory blending to 2010. The report from Rio de Janeiro says (via the Estado newswire service, according to the CNN.com website, which came from the Dow Jones newswire service)(sorry, I like to have more direct resources, but although I am sometimes re-published in Brazil, I don't read Portuguese myself) Mines and Energy Minister Edison Lobao wants to push up the starting lines for 3% biodiesel blends as a mandatory regulation for Brazil as early as July this year, with another increment to 4% next year before the 5% in 2010. According to this story, the country now consumes 840 million liters with the current regulations that require all diesel to be blended at least as B2 (2% biodiesel), so that would boost domestic consumption to 1260 million liters per year. The Minister indicated that this level was not a problem for the country since current capacity it to produce 2.5 billion liters per year, which, according to my math says that they could theoretically bump that up to 5% immediately without creating a shortage.

Ah, but THEN the newswire story goes on to say that: "Much of Brazil's biodiesel output capacity lies idle, however, due to high prices of raw materials, such as soy oil." You see? I told you.

Ah, BUT, that's not the whole picture, and as I suggested above, let's now turn our eyes to algae.

Last month PetroSun BioFuels, Inc., a wholly owned subsidiary of PetroSun, Inc. (Other OTC:PSUD.PK - News), acquired an 87.5% ownership interest in Fleet Biodiesel, Inc. located in Bridgeport, Alabama. This facility is located with access to the Kentucky river, and is currently producing at about an annual rate of 720,000 gallons according to the news release from Petrosun. Now, if everybody else is moaning and groaning about biodiesel being squeezed out of the market by rising soy prices, what does Petrosun know that everybody else does not? Petrosun has also (and more recently) announced that they are opening a facility near South Padre Island (South East of Houston, TX), that will be producing algae, and from that, algal oil. Indeed, production plans for the Bridgeport facility are to boost production to 2.4 million gallons per year, using algal oil. The open pond method being employed by Petrosun allows them to get started with a huge facility (well, huge compared to anything anyone else in the continental United States is operating currently) (to the best of my knowledge, though if you know about one that is larger, please tell me about it). The photo at the top of this article shows some of the ten acre open pond cultivation areas, in full bloom on the left and not active on the right.

Petrosun says they expect to be operational by April 1st, 2008. The "farm" as they call it has 94 ponds of five acre size and 63 ponds of ten acre size on the 1,831 acre site. By Petrosun's calculation that is 1,100 acres under "cultivation" in the ponds. With their commitment to the Bridgeport facility I don't know how much oil they will have left over, but their press release tantalizingly promised, "PetroSun will conduct algae-to-jet fuel and algae-to-bioplastics research and development projects." If that's true, I applaud their aim, and will look forward to meeting and talking with them.I don't know where I found the self-restraint to avoid mentioning politics this week, except that it is already Tuesday, and I still haven't submitted this to my editors, so, I will postpone politics and entertainment "bon mots" until next time.

Love,

Stafford "Doc" Williamson

p.s. Oh, yes, part of the reason I have been so slow getting this week's musings together is that I have been working on a government bid, and revamping my "printer supply" shop at http://www.sav-mor-on-ink.com/ , where prices are better than ever to the public and the corporate and government trade has been isolated out of sight (more or less).

Saturday, March 1, 2008

A young man was killed - a hate crime

This link should be on THE mostimportantpageontheinternet.com if such a place exists.

I barely managed not to cry when I saw this. I hope you can understand the importance that everyone needs to act upon this plea from Ellen deGeneris

SEE THIS VIDEO NOW, and PLEASE, make sure everyone you know sees it too.

love

Stafford "Doc" Williamson

Green Politics requires Immediate Action to be Effective

I am in a hurry today, because this is NOT my regular weekly brain dump, just a quick note to test a theory.

I hope that people are listening, but I fear they are not. I have been seeing a lot of "biofuels are a hoax" nonsense lately. Some people even try to cloak this negative publicity in the garb of scientific jargon, like "it violates Newton's First Law" (of thermodynamics) without understanding that the systems are constantly acquiring input, which their calculations never take into account.

I have recently put up a couple of videos, including one called "Algae the Wonderfuel" that I rather like, but frankly I am concerned that all the "research" in the world is not going to get us to a practical level of actual attenuation of the problem fast enough to really be a solution. Endless political debates may actually be needed, but I, for one, think that we need to get something HAPPENING and the debates should take place on the issues to be refined, not the basic premise that we have to change our ways.

Conservation? Well, let's see, 30 years or more ago, as personal computers were starting to make an appearance, there were all these predictions of "paperless" offices. The opposite result came about. And paper waste in one form or another constitutes almost 70% of the content of all urban (industrialized nations') landfills.

Let's make a SERIOUS effort to convert all the administrative work we can to being work-from-home TELECOMMUTER work. The fuel savings there will be enormous. And that means not just the fuel itself, but all the infrastructure wear and tear as well as the depreciation and actual replacement needs in terms of automobiles as well.

Take a look at the "green" videos below and see what IDEAS you come up with, and by all means, discuss it here in your comments.



THANKS