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EREN NETWORK NEWS -- March 20, 2002
A weekly newsletter from the U.S. Department of Energy's (DOE)
Energy Efficiency and Renewable Energy Network (EREN).
<http://www.eren.doe.gov/>
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Featuring:
*News and Events
California Governor Davis Extends MTBE Phase-Out to 2003
New Biodiesel Plant to Produce 30 Million Gallons Annually
Canadian Companies to Produce BioOil from Wood Waste
NREL Director: Renewable Energy Enhances Homeland Security
Feds to Receive No-Cost Biomass Energy, Efficiency Gains
DOE Renewable, Energy Efficiency Office to Reorganize
*Energy Facts and Tips
EPA Launches Voluntary Greenhouse Gas Program
*About this Newsletter
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NEWS AND EVENTS
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California Governor Davis Extends MTBE Phase-Out to 2003
California Governor Gray Davis dealt a blow to the
U.S. ethanol fuels industry last week by extending the
deadline for the phase-out of MTBE in the state to the end of
2003. Back in 1999, concerns about groundwater pollution
led Governor Davis to order the phase-out of the use of
MTBE as a gasoline additive in California by the end of this
year. MTBE is an oxygenate, and is used to reduce ozone
emissions. California sought a waiver from the oxygenate
requirements, but the U.S. Environmental Protection Agency
denied that waiver in June 2001. Since the only other
gasoline oxygenate is ethanol, the MTBE phase-out will
create a large market for ethanol in California. Delaying the
phase-out will slow some of the rapid growth that the ethanol
industry had expected.
The governor's decision followed a report released last week
that predicted gasoline supply shortages in Southern
California if the phase-out proceeded as planned. Ironically,
the expected supply problems are due to problems with
gasoline supply and imports to the state, rather than ethanol
supply concerns. The report, commissioned by the California
Energy Commission (CEC), assumes that the ethanol supply
is available, but predicts problems because fewer additives
and more gasoline would be used in ethanol fuel blends.
See the CEC MTBE Web page, which includes links to the
Governor's announcement and the report, at:
<http://www.energy.ca.gov/mtbe/index.html>.
For its part, the ethanol industry claims it was ready to meet
the anticipated demand and is asking California refiners to
voluntarily shift from MTBE to ethanol blends. See the
Renewable Fuels Association (RFA) press release at:
<http://www.ethanolrfa.org/pr020315.html>.
The RFA claims are also backed by a recent report from the
U.S. General Accounting Office (GAO). That report says that
ethanol capacity will be sufficient to meet the nation's needs,
but expresses concern that the industry is concentrated in
the Midwest and warns that bans of MTBE in other states
could lead to capacity problems. See the GAO report, in
Adobe PDF format only, at:
<http://www.gao.gov/new.items/d02440r.pdf>.
New Biodiesel Plant to Produce 30 Million Gallons Annually
Southern States Power Company Inc. announced plans last
week to build a biodiesel production factory in Riverside,
California, capable of producing 30 million gallons per year
of biodiesel fuel. If built as planned, the biodiesel plant will
be the largest in the United States. The company signed a
memorandum of understanding with Lurgi PSI, Inc. to
develop the facility. The company currently has a 10-million-
gallon-per-year facility in Coachella, California, about
50 miles east of Riverside. See the March 14th press
release on the Southern States Power Web site at:
<http://www.sspowerco.net/newspress.cfm>.
Biodiesel is also getting a boost in New York, where the New
York State Energy Research and Development Authority
(NYSERDA) is spending nearly $700,000 this year to
advance the use of biodiesel in the state. NYSERDA
announced Monday that $320,000 will go to NOCO Energy
Corporation in Tonawanda, New York, for the company to
blend, market, and sell biodiesel in the Buffalo-Niagara area.
A separate award of $62,000 will help the Niagara Frontier
Transportation Authority to fuel 140 of its 330 buses with
NOCO's biodiesel for at least a year. NOCO will use
biodiesel to fuel its own fleet of trucks and will provide the
fuel to the Town of Tonawanda for its municipal truck fleet.
NOCO will also evaluate the use of bio-heating fuels in
boilers and furnaces. See the NYSERDA press release at:
<http://www.nyserda.org/press/2002/mar18_02.html>.
Biodiesel is making inroads throughout the country. The first
public biodiesel pump in Missouri opened in early March in
Jefferson City, and became the starting point for the journey
of a biodiesel-fueled truck to Washington, D.C. See the
press releases on the National Biodiesel Board's Web site
at: <http://www.biodiesel.org/default2.htm>.
And in late February, a marina in Fort Meyers, Florida,
became the first in the state to offer a biodiesel blend. See
the February 28th press release from WCI Communities, Inc.
by selecting "Company News" on the home page at:
<http://www.wcicommunities.com/>.
Do you need to locate a station that offers biodiesel or other
alternative fuels? Try the newly redesigned "Alternative Fuel
Station Map Site." The site has a simplified interface to help
you find stations, and it now includes a "route mapper" that
will help you find stations along a planned route. Sorry, but
marinas aren't listed. See the Alternative Fuels Data Center
Web site at: <http://www.afdc.doe.gov/refueling_mapsite.shtml>.
Want to know more about biofuels such as ethanol and
biodiesel? Visit the revamped DOE Biofuels Web site,
located at: <http://www.ott.doe.gov/biofuels/>.
Canadian Companies to Produce BioOil from Wood Waste
While ethanol and biodiesel fuels are surging ahead in the
United States, two Canadian companies intend to build a
demonstration plant to produce yet another renewable fuel,
called BioOil. Dynamotive Energy Systems Corporation has
been operating a 10-ton-per-day pilot facility in Vancouver
since last year, converting wood waste and agricultural
wastes into a liquid fuel that can be burned in boilers, gas
turbines, and diesel engines. Dynamotive announced in late
February that it is working with Canadian Forest Products
Ltd. (Canfor) on a joint technical review of a 200-ton-per-day
BioOil plant. As currently conceived, the BioOil plant would
be built alongside a Canfor facility, converting its wood waste
into BioOil, which would in turn be used to fuel kilns in the
Canfor facility. DynaMotive produces the fuel using a high-
temperature process called pyrolysis. See the DynaMotive
press release at:
<http://www.dynamotive.com/news/newsreleases/020226.html>.
NREL Director: Renewable Energy Enhances Homeland Security
Renewable energy technologies can enhance homeland
security, according to Richard Truly, director of DOE's
National Renewable Energy Laboratory (NREL). Speaking
before the National Press Club last week, Truly noted that
wind, biomass, geothermal, and solar energy sources can
reduce U.S. reliance on foreign energy sources, thereby
bolstering U.S. energy security. But they also serve to
protect the country's energy infrastructure from attack.
"Renewable energy technologies - particularly when
deployed as a distributed energy resource - can play a vital
role in securing our energy infrastructure," said Truly. "The
more energy efficient we are, the more energy we get from
sustainable, domestic resources, the less pressure we have
on our energy infrastructure and the less vulnerable we are
to disruption." See the NREL press release at:
<http://www.nrel.gov/hot-stuff/press/0902_security.html>.
Or go directly to Truly's speech, on the NREL Web site at:
<http://www.nrel.gov/director/trulyspeech_031402.html>.
Feds to Receive No-Cost Biomass Energy, Efficiency Gains
DOE announced last week that it has selected five energy
service companies to provide federal facilities with energy
efficiency services combined with energy from biomass and
"alternative" methane sources. DOE's Federal Energy
Management Program (FEMP) will set up umbrella contracts
with the five companies, making it relatively simple for
individual federal sites to arrange for these services. Called
Energy Savings Performance Contracts, or ESPCs, the
contracts require no investment from federal agencies.
Instead, the companies finance and implement energy-
saving projects, and then are repaid over a period of time
based on the actual energy savings achieved.
For the five contracts announced last week, the companies
will convert federal facilities to allow them to use biomass
energy sources, such as dedicated energy crops and trees,
agricultural crop residues, aquatic plants, wood and wood
residues, animal wastes and other organic waste materials.
The companies will also install systems that use methane
from organic sources like landfills and wastewater treatment
plants. In an unusual move, coal bed methane sources are
also included. To help offset the costs of the biomass and
methane systems, the companies will also install energy
efficiency improvements. The combined value of the
contracts may be as high as $200 million. See the DOE
press release at:
<http://www.energy.gov/HQPress/releases02/marpr/pr02042.htm>.
See also the FEMP Web site at:
<http://www.eren.doe.gov/femp/financing/espc/biomass.html>.
So what, you may ask, is coal bed methane? It's methane
trapped within coal seams that is released by coal mining.
If simply ventilated from the coal mines, it becomes a major
source of greenhouse gas emissions, but it can instead be
captured and used as an energy source. See the Coalbed
Methane Outreach Program on the U.S. Environmental
Protection Agency Web site at: <http://www.epa.gov/coalbed/>.
DOE Renewable, Energy Efficiency Office to Reorganize
DOE's Office of Energy Efficiency and Renewable Energy
(EERE) is planning to reorganize to a flatter structure that
focuses more on programs. David Garman, Assistant
Secretary for EERE, announced the proposed changes on
Monday. The new organization will eliminate the current
"sector" offices -- power, buildings, industry, transportation,
and federal energy -- and instead will create 11 offices
focused on programs such as solar, geothermal, and
hydrogen and infrastructure. The reorganization will also
elevate the role of communications and outreach. Garman
expects the reorganization to take effect in May. See the
announcement on the EERE home page on EREN at:
<http://www.eren.doe.gov/ee.html>.
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ENERGY FACTS AND TIPS
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EPA Launches Voluntary Greenhouse Gas Program
In support of President Bush's plan for voluntary programs to
reduce greenhouse gas emissions, the U.S. Environmental
Protection Agency (EPA) launched its new "Climate Leaders"
program in late February. The 11 charter members have
committed to complete a corporate-wide greenhouse gas
inventory and to work with EPA to set an emissions
reduction target. General Motors Corporation is one of the
Climate Leaders charter members. For the full list, see the
EPA press release at:
<http://www.epa.gov/epahome/headline_022002.htm>.
The EPA is also lending a hand to this process through its
sponsorship of the Greenhouse Gas Technology Center.
Technologies that may help reduce greenhouse gas
emissions are subjected to independent testing to verify their
performance. Applicants must share the cost of the testing
and pay a $1,000 application fee. The center's Web site
currently includes verification test results for three
microturbine systems and one fuel cell system. See the Web
site at: <http://www.sri-rtp.com/>.
BP is living proof that companies can accomplish significant
greenhouse gas reductions if they try. The company has cut
emissions from its own operations to 10 percent below 1990
levels, and achieved its goal eight years early. BP achieved
its cuts at no cost, primarily by increasing energy efficiency
in its operations. The company notes, however, that with its
anticipated growth, it will require diligence and continued
efficiency improvements to hold its emissions levels
constant. See the BP press kit, with links to the press
release and a related speech, at:
<http://www.bp.com/centres/press/stanford/index.asp>.
While launching the EPA program, the Bush Administration
has also made agreements with both Canada and Japan to
work cooperatively on global climate change. The wide-
ranging agreements may include work on cogeneration,
renewable energy sources, and energy efficiency
technologies. See the U.S. State Department press releases
at: <http://www.state.gov/r/pa/prs/ps/2002/8678pf.htm>
and <http://www.state.gov/r/pa/prs/ps/2002/8578.htm>.
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ABOUT THIS NEWSLETTER
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