Although today the military is able to buy fuel for operations anywhere around the world, access to oil is not guaranteed in the future. … Related to that risk, the military, like all consumers in the U.S., relies on oil from countries that do not align with our interests.  …  It also means that, in a shooting war, when our fighting men and women need access to fuel to effectively fight, we may not be able to guarantee access to the fuel we need.

…Today, there is a new technology on the horizon that is rapidly developing as a real alternative to petroleum-based fuel. New, next-generation biofuels can provide a drop-in replacement for the fuels our military needs for combat and training operations.

…The Department of the Navy has proposed to address this risk by using the Defense Production Act, in conjunction with the Department of Energy and the Department of Agriculture, to directly invest in commercial development of a domestic biofuels industry.

…Last year, a congressionally mandated study concluded that biofuels would be competitive early in the next decade – a timetable that it said could be moved forward if the government partnered with industry to speed up commercialization.  READ MORE

This marks a total of close to $50 million in funding that Heliae has received since launching in 2008.  As a start-up venture spun out of Arizona State University with the support of Science Foundation of Arizona, Heliae’s mission is to develop and validate technology solutions for the commercial production of algae for a variety of potential uses including food & feed, fertilizer, chemicals, pharmaceuticals, cosmetics, and fuel.

This new round of investment will support tangible steps toward creating an international presence for Heliae’s technology by funding continued research and development at Heliae’s demonstration facility in Arizona and taking steps toward operating an R&D center in Indonesia, aiming for commercial production in 2014.

… With the Mars family investment, the company tapped former BioFuel Energy COO Dan Simon as CEO and, unsurprisingly but critically, expanded the focus beyond fuels and into foods, feed and fertilizers. But it had not, by any means, abandoned fuels. Last year SkyNRG signed an MOU with Heliae to produce algae-based jet fuel, and at last year’s Paris Air Show, Heliae Development and Azmark Aero Systems announced a collaboration to develop and promote algal fuels in jet engines.

…We do know that the Helae solution is designed as a bolt-on solution for industrial CO2 emitters or nitrogenous waste sources – and their algal strains are reported to be producing at rates that are well above industry norms.

… In the US and Europe, Anthoni Salim is not all that well known in the US and Europe, but he’s Indonesia’s 5th wealthiest individual (net worth, reported by Forbes at $3.6 billion), and multiple food, cement, real estate, banking, and mining public companies in his control. Over in Asia, his name is an established brand.

The Food Factor. Over the next few years, expect a fairly healthy number of algal companies to pivot to the feed and food sectors, en route to entering fuels.

…Feed and food, while smaller markets than fuels, offer vast gulfs of opportunity, and higher per-ton prices. More importantly, Asia is long capital and short feed.

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The first project, with Prime Inc of India, will grow algae on 250 acres at a cost of $100 million and produce $150 million in biodiesel as well as protein for animal and fish feed or that can be turned into ethanol, WHEN Chairman Chaim Lieberman said.

Prime, which provides infrastructures and transportation services to oil companies, will put up the funding in exchange for a 70 percent stake in the project.

The second project, with SHK Energy Projects of India, will comprise a $25 million, 45-acre algae farm expected to bring in $35 million in revenue.  READ MORE

…“The price level will have to come down before it is feasible – you cannot afford to pay three or four times the normal cost for conventional jet fuel,” she said. “However we have to be proactive and show that this is doable so that we can bring other players on board, get the economies of scale in place and help drive down the price.”

Boeing’s Director of Sustainable Aviation Fuels Strategy, Darrin Morgan, said there was a bottle-neck as many airlines wanted the new fuels but came up against suppliers who needed project finance but had to wait until the certification milestone had been passed, which was only nine months ago.

“You hear of numbers like $20 per gallon and $5-6 per litre – we know where those costs are coming from. It’s not the fundamental cost of making jet fuel, it’s the fact that you’re having to borrow a facility and pay a lot of money for a very small run.”   READ MORE

McAdams began his testimony, “Let me start today by sharing some of the biggest success stories which have occurred over the last year. The Air Force has flown the F-16/Thunderbirds on a mixture of advanced biofuels, the navy has tested advanced biofuels in ships and vehicles, and the commercial sector has flown the first cross country flight on a blend of renewable jet fuel.”

“We have one member, Dynamic Fuels, producing a million gallons of renewable jet and renewable diesel a week, and have five members who have gone public. In addition, two Colorado member companies are preparing to deploy their innovative technologies in the near term.”

“Gevo, which will produce an isobutanol, a drop in, fungible fuel, will commission its 18 million gallon plant in June of this year in Luverne, Minnesota. While Sundrop Fuels is on target to break ground to build a 50 million gallon cellulosic gasoline plant in Louisiana this year.”

McAdams also noted, “the single most important policy component is the Renewable Fuels Standard, passed overwhelmingly in 2007 by a bipartisan Congress and signed into law by President Bush. Although it is not perfect, it is fundamentally important that the Congress continue to send a strong bipartisan signal of support for this policy if we wish to continue the remarkable progress and grow an advanced biofuels industry.”

He concluded his testimony, “We believe we can and should be a fundamental part of an American energy policy that adopts a portfolio approach. As I have shared with you this morning, we are already starting to see advanced biofuels delivering on its promise of creating new jobs, and helping to strengthen our nation’s economic and energy security.”  READ MORE

The letter follows:

The Honorable Daniel K. Inouye

Chairman

Senate Committee on Appropriations

U.S. Senate

Washington, DC 20510

The Honorable Thad Cochran

Ranking Member

Senate Committee on Appropriations

U.S. Senate

Washington, DC 20510

Dear Chairman Inouye and Ranking Member Cochran:

In advance of the scheduled mark up of the Fiscal Year 2013 Energy and Water Development Appropriations Act on Thursday, the members of the Advanced Biofuels Association (ABFA), Algal Biomass Organization (ABO), Airlines for America (A4A), the American Farm Bureau Federation (AFBF), and the Biotechnology Industry Organization (BIO) urge you to support the inclusion of language to allow for the transfer of funds from the Department of Energy’s (DOE) Energy Efficiency and Renewable Energy (EERE) accounts to the Defense Production Act (DPA) fund. This transfer that would further DOE’s mission is a top priority for our industries because it would serve as a catalyst to the development of a commercial supply of alternative fuels and reduce our nation’s dependence on foreign oil and a volatile global oil market.

The language, requested by DOE, would support an interagency initiative to ramp up commercial production of domestic renewable fuels for commercial and military use in ground, maritime and aviation systems. Advanced, drop-in biofuels offer a viable alternative to conventional petroleum-based fuels for defense applications and have been demonstrated in myriad weapon systems. The U.S. Air Force has already completed certifying its entire aircraft fleet to operate on a blend of 50 percent synthetic jet fuel and is moving to certify other alternatives. The U.S. Navy is in the process of approving hydrotreated renewable jet fuels, synthetics and other alternatives.

As these certifications have shown, advanced biofuels and other alternatives can replace military fuels derived from crude oil without disruptions or changes to existing equipment or infrastructure while reducing dependence upon oil imports. DOE’s ability to direct funds to this initiative will further its mission to “ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.” It will also build on past DPA successes that have resulted in domestic production capacity for valued defense materials, such as silicon carbide ceramics (used in nuclear reactors), indium phosphide and gallium arsenide (used in lasers and semiconductors), as well as aluminum and titanium, which are ubiquitous in nearly all major weapons systems.

Thank you for your consideration of this request. Please feel free to contact us with any questions and please know that the members of our organizations stand ready to do their part to increase our nation’s energy independence and security.

Sincerely,

Michael J. McAdams

President

Advanced Biofuels Association

Sharon L. Pinkerton

Senior Vice President Legislative and Regulatory Policy

Airlines for America

Mary Rosenthal Executive

Director

Algal Biomass Organization

Bob Stallman

President

American Farm Bureau Federation

James C. Greenwood

President and CEO

Biotechnology Industry Organization   READ MORE

The biofuel suppliers and nature of the technology each will use was not revealed.

(Lufthansa & algae discussed separately below) It was explained, that both buyer and seller have agreed that price of the fuel will be on a down sliding scale in recognition that costs will drop as fuel production quantities and experience increase.

At the least, this news suggests that biofuels suitable for use in aircraft have proved satisfactory from numerous in-flight tests by many airlines and that fuel production technology has reached the stage of proof that it is on target for commercial production at scale.

…An interesting sidelight to the KiOR operation is a recent statement by its highly successful venture capitalist developer, Vinod Khosla. Mr. Khosla has suggested that many of the nearly 100 paper mills now out of business in the Southern soft wood area could be retro fitted on a cost effective basis for production of bio fuel since wood gathering, intake and initial wood processing capabilities are already in place. Experienced labor from the paper mill days apparently remain available. READ MORE  and MORE

…“People in the UK fly more than anyone else in the world, so it is right that the UK takes a leading role in tackling aviation emissions growth,” it said. “The Committee’s recommendations would give aviation considerable leeway compared with other sectors but would ensure that aviation in future participates transparently in the UK’s efforts to bring our economy within sustainable limits.”  READ MORE

This session is not intended to offer government insight, nor answer direct questions and receive comments on the DPA Title III Advanced Drop-In Biofuels Production Project. Questions related to the Special Notices or the pending Broad Agency Announcement (BAA) cannot be answered at this roundtable. All comments concerning the Special Notices on the pending BAA should be sent toTitleIIIBiofuels@wpafb.af.mil.

The meeting will be held on Friday, May 18, 2012, from 8 a.m. to 5:30 p.m.

The meeting will be held at USDA Jefferson Auditorium, USDA South Building, 14th and Independence, Washington, DC 20250.

The purpose of the roundtable meeting is for the federal government to present further details on the partnership between the DoN, DoE, and USDA to construct or retrofit multiple commercial scale advanced biorefineries. Additional general information will be provided regarding the DPA Title III, the Commodity Credit Corporation, and DoN’s requirements for fuels.Show citation box

There is no cost; however, all attendees must register before May 11, 2012, for this Industry Roundtable via email reg.adibir@Gmail.comwith all of the following required information:Show citation box

Name and Title:

Corporate Affiliation:

Address:

Phone number:

Email:

Web site:

Position on the Biofuels Production Value Chain: (feedstock provider, bio-refiner, finished products distributor, integrated effort, subject matter expert, financier, etc.)

Information and details concerning this Industry Roundtable (including maps and draft agenda) will be forwarded to those registered later.

- Program funded by the key partners and by Business-Led Networks of Centres of Excellence (BL-NCE) Program through GARDN

Porter Airlines today successfully conducted the first biofuel-powered revenue flight in Canada. In the successful conclusion to a test program that was launched in 2010, the airline flew one of its Bombardier Q400 turboprops from its base at Billy Bishop Toronto City Airport to Ottawa using a 50/50 blend of biofuel and Jet A1 fuel in one of its engines.

The fuel was certified to the new American Society for Testing and Materials (ASTM) D7566/D1655 standard and the biofuel used was derived from the oilseed crops, Camelina sativa* (49 per cent) and Brassica carinata* (one per cent). The aircraft’s other engine was powered by Jet A1 fuel. The flight included passengers making their way to Ottawa for business and pleasure, representatives from the biofuel test program’s partnering organizations and media.

This is the final step in a two-year project whose key members are Targeted Growth, Bombardier Aerospace, Pratt and Whitney Canada, the manufacturer of the PW150A engines that power the Q400 aircraft, and Porter Airlines. Funding for the biofuel test program was provided by the key partners, as well as by Business-Led Networks of Centres of Excellence (BL-NCE) through the Green Aviation Research & Development Network (GARDN).

Additional support to the program was provided by Agrisoma Biosciences Inc., which grew the carinata and produced the carinata bio-oil; Sustainable Oils, which crushed the camelina to make the camelina bio-oil; Honeywell UOP, which converted the bio-oils into the bio-derived jet fuel to meet the D7566 standard; and SkyNRG who were responsible for logistics and blending meeting the D1655 specification.

“In a fitting tribute to Earth Day 2012, which is now less than a week away, we are delighted that one of our Bombardier Q400 turboprops has become the first aircraft to successfully conduct a biofuel-powered revenue flight in Canada,” said Robert Deluce, President and Chief Executive Officer, Porter Airlines. “The use of biofuels promises to significantly reduce the level of emissions produced by commercial aircraft worldwide, and Porter is honoured to have contributed to this test program in Canada.”

“The success of this biofuel test program, which utilized a Bombardier Q400 aircraft, speaks volumes about the ability of the aviation and other communities to work together towards producing a more sustainable aviation industry,” said Hélène V. Gagnon, Vice President, Public Affairs, Communications and Corporate Social Responsibility, Bombardier Aerospace. “But that’s not the only milestone achieved today. This is the first time that a revenue flight in Canada was powered by biofuel, so we’ve achieved a first for Canada. ”

“When this biofuel project was submitted in October 2010, the Private Sector Advisory Board, a strategic body comprised of respected Canadian industry leaders, approved it with complete confidence and praised it very high value added, world-class experts and very good focus,” said Sylvain Cofsky, Executive Director of GARDN. “Eighteen months later, today’s flight proves they were right and I am extremely proud of GARDN’s contribution to this very promising success in the field of aviation.”

“We are firmly committed to ensuring that our products are designed, produced and operated while minimizing environmental impacts throughout their life cycle, outperforming the most stringent ICAO standards,” said Daniel Breitman, Vice President, Engine Development Programs, Pratt & Whitney Canada. “We have implemented new technologies to significantly reduce fuel consumption, environmental emissions and engine noise in our latest generation of engines and we are developing cutting-edge green technologies for the future, to help the aerospace industry reach its commitment of reducing its overall footprint.”

“Targeted Growth was very pleased to be involved in this project,” said Robert Woods, president, Targeted Growth. “Partnerships such as this one help demonstrate market confidence that spurs the critical research and development required to advance feedstock productivity.”

On February 9, 2012, in preparation for Porter’s revenue flight, Bombardier flew a Q400 turboprop test aircraft on the ASTM D7566/D1655 bio-derived jet fuel. This was the first such biofuel-powered test flight in Canada.  READ MORE