This newsletter is published to give bFA employees, strategic partners and investors news and information on the current status of bFA. Each issue will also give our readers the latest news and information on the advanced biotechnology industry.
1 FALL 2011 “Committed to Innovation and Community” VOLUME 1, NUMBER 3 US Government to invest $510M in advanced, drop-in biofuels In Washington, President Obama today announced that the U.S. Departments of Agriculture, Energy and Navy will invest up to $510 million during the next three years in partnership with the private sector to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation. The initiative responds to a directive from President Obama issued in March as part of his Blueprint for A Secure Energy Future, the Administration’s framework for reducing (Article continued on page 7) Message From The CEO WELCOME, in response to the global economic crisis many developed nations such as Germany, France and Italy have embarked on a new era of austerity. Given the current political landscape in Washington, all signs indicate that our nation will follow suit. On the chopping block are many domestic programs such as entitlements and defense. Also under consideration are the various clean energy programs that have been or were anticipated to be used by our nation’s growing clean energy industry. Given the $528 million loan to now defunct Solyndra, it appears that new energy companies will be subjected to more stringent criteria by the government in order to receive needed financial assistance. Congress should keep in mind that the development of new technology has inherit risks. Such risks can be mitigated with sound financial due diligence of projects. Hopefully, there will be no more Solyndras. However, we must forge ahead with our eyes focused on the ultimate prize which is to become the world leader in the New Energy Economy. Regards, Pete Reeves CEO
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FALL 2011 “Committed to Innovation and Community” VOLUME 1, NUMBER 3
US Government to invest $510M in advanced, drop-in biofuels
In Washington, President Obama today announced that the U.S. Departments of Agriculture, Energy and Navy will invest up to $510 million during the next three years in partnership with the private sector to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation.
The initiative responds to a directive from President Obama issued in March as part of his Blueprint for A Secure Energy Future, the Administration’s framework for reducing
(Article continued on page 7)
Message From The CEO
WELCOME, in response to the global economic crisis many developed nations such as Germany, France and Italy have embarked on a new era of austerity. Given the current political landscape in Washington, all signs indicate that our nation will follow suit. On the chopping block are many domestic programs such as entitlements and defense. Also under consideration are the various clean energy programs that have been or were anticipated to be used by our nation’s growing clean energy industry. Given the $528 million loan to now defunct Solyndra, it appears that new energy companies will be subjected to more stringent criteria by the government in order to receive needed financial assistance. Congress should keep in mind that the development of new technology has inherit risks. Such risks can be mitigated with sound financial due diligence of projects. Hopefully, there will be no more Solyndras. However, we must forge ahead with our eyes focused on the ultimate prize which is to become the world leader in the New Energy Economy.
Clean Energy Patents continue strong showing in 2d Quarter- Clean Energy Patent Growth Index
Albany, NY The second quarter results for the Clean Energy Patent Growth Index (CEPGI) were issued by the Cleantech Group at Heslin Rothenberg Farley & Mesiti P.C. Victor Cardona, Co-chair of the firm's Cleantech Group stated, "we are pleased to announce that the Clean Energy Patent Growth Index was at its third highest total ever in the 2d quarter–lagging only the previous two quarters-and was up 100 patents over the second quarter of 2010. Wind patents were up and GE took the quarterly Clean Energy patent Crown from GM, winter of the two previous quarters and overall 2010 leader. Japan led California followed by a wind patent surging New York." The CEPGI tracks the granting of patents in the Clean Energy sector and monitors important technological breakthroughs in this field. Victor Cardona, Co-chair of the firm’s Cleantech Group stated, “we are pleased to announce that the Clean Energy Patent Growth Index was at its third highest total ever in the 2d quarter–lagging only the previous two quarters-and was up 100 patents over the second quarter of 2010. Wind patents were up and GE took the quarterly Clean Energy patent Crown from GM, winter of the two previous quarters and overall 2010 leader. Japan led California followed by a wind patent surging New York.” The Clean Energy Patent Growth Index (CEPGI) provides an indication of the trend of innovative activity in the Clean Energy sector since 2002 in the U.S., along with Leading Patent Owners and Leading Country and State information. Results from the second quarter
of 2011 reveal the CEPGI to have a value of 537 granted U.S. patents which is the third highest quarter since tracking of the CEPGI began, lagging only the immediate two preceding quarters by 3 and 35 patents respectively, along with being up 100 over the second quarter of 2010. Quarterly results are illustrated below:
The components breakdown of the CEPGI shows fuel cells to be down 45 relative to the 1st quarter at 205 and down 43 relative to the year before. Granted solar patents (122) continued to top the remaining components of the CEPGI, and in particular its closest competitor, wind (113), by 9. Solar patents were down 16 compared to the 1st quarter while up 46 relative to a year prior. Wind was up 27 over the first quarter and up 58 over the second quarter of 2010. Hybrid/electric vehicle patents (47) were up 9 relative to the 1st quarter and up 14 compared to the second quarter of the year before. Biofuel patents (27) were up 10 from the 1st quarter and up 15 relative to the 2d quarter of 2010. Hydroelectric patents were at four patents topping by three patents the first quarter and the same period of the year prior. Tidal patents were up 6 at 15 from the1st quarter and up 5 over the year before.
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General Electric took the quarterly Clean Energy Patent crown with 44 granted clean energy patents in the second quarter of 2011, ending General Motors’ streak of two quarterly wins and having won the annual contest in 2010. GE’s win was based primarily on its wind patents (37) along with small numbers of patents in Fuel cells (1), Hybrid/Electric vehicles (2), solar and a pair of others. GM fell to fourth place while Toyota climbed back up into second place with 33 granted clean energy patents followed by Samsung with 28. Toyota’s patents were in fuel cells (21) and Hybrid/Electric vehicles (12). Samsung coupled a large fuel cell (23) turnout with an assist from solar (5). GM’s patents were primarily in Fuel Cells at 24 and GM led all others in this category in the second quarter. Also, Hybrid/Electric vehicles (3), as one would expect from a car company, added to GM’s tally. Vestas had 22 wind patents and trailed GE by 15 in this category while taking fifth place. Honda followed with an uncharacteristically low 14 clean energy patents in fuel cells (12), hybrid/electric
vehicles (2) and solar (1). Panasonic had 9 fuel cell patents in seventh place while five entities tied with 5 granted clean energy patents. Applied Materials was second in solar patents to Samsung, having 4 solar patents and one fuel cell patent. Car companies N
issan and Ford had patents in fuel cells (4 and 3, respectively) and hybrid/electric vehicles (2 each). Canon had patents exclusively in fuel cells (5) while Siemens scored wind (3) and fuel cell (2) patents. Geographically, Japan was the first quarter leader among non-U.S. holders of U.S. clean energy patents and the individual U.S. states with 114, down 17 from the 1st quarter and down 7 from the same period in 2010, to again claim the geographical clean energy patent crown. California was in second place for the third consecutive quarter at 65 clean energy patents, up 6 over the second quarter and up 16 compared to a year prior, leading new third place finisher New York which leapfrogged Michigan due to its largest quarterly finish ever at 52 granted clean energy patents, up 17 over the 1st quarter and up 30 over a year prior. Korea followed with 41 patents matching last quarter’s total and up 4 over the same quarter in 2010. Longtime second place holder (and longtime US states leader ) Michigan fell to 5th place, down 14 from the previous result and up two over last year’s. Denmark (26) and Germany (29) trailed with Germany up 5 over last quarter and tieing the results of a year ago while Denmark was up 9 over last quarter and 17 over last year’s second quarter. (Others having significant clean energy patent totals were Massachusetts (13) with a total identical to that of the first quarter, while Canada and Colorado had 9 and Connecticut had 7 (identical to the last quarter). The components breakdown of the CEPGI shows
fuel cells to be down 45 relative to the 1st quarter at
205 and down 43 relative to the year before.
Granted solar patents (122) continued to top the
remaining components of the CEPGI, and in
particular its closest competitor, wind (113), by 9.
Solar patents were down 16 compared to the 1st
quarter while up 46 relative to a year prior. Wind
4
was up 27 over the first quarter and up 58 over the
second quarter of 2010. Hybrid/electric vehicle
patents (47) were up 9 relative to the 1st quarter and
up 14 compared to the second quarter of the year
before. Biofuel patents (27) were up 10 from the
1st quarter and up 15 relative to the 2d quarter of
2010. Hydroelectric patents were at four patents
topping by three patents the first quarter and the
same period of the year prior. Tidal patents were up
6 at 15 from the1st quarter and up 5 over the year
before.
General Electric took the quarterly Clean Energy
Patent crown with 44 granted clean energy patents
in the second quarter of 2011, ending General
Motors’ streak of two quarterly wins and having
won the annual contest in 2010. GE’s win was
based primarily on its wind patents (37) along with
small numbers of patents in Fuel cells (1),
Hybrid/Electric vehicles (2), solar and a pair of
others. GM fell to fourth place while Toyota
climbed back up into second place with 33 granted
clean energy patents followed by Samsung with 28.
Toyota’s patents were in fuel cells (21) and
Hybrid/Electric vehicles (12). Samsung coupled a
large fuel cell (23) turnout with an assist from solar
(5). GM’s patents were primarily in Fuel Cells at
24 and GM led all others in this category in the
second quarter. Also, Hybrid/Electric vehicles (3),
as one would expect from a car company, added to
GM’s tally. Vestas had 22 wind patents and trailed
GE by 15 in this category while taking fifth place.
Honda followed with an uncharacteristically low 14
clean energy patents in fuel cells (12),
hybrid/electric vehicles (2) and solar (1).
Panasonic had 9 fuel cell patents in seventh place
while five entities tied with 5 granted clean energy
patents. Applied Materials was second in solar
patents to Samsung, having 4 solar patents and one
fuel cell patent. Car companies Nissan and Ford
had patents in fuel cells (4 and 3, respectively) and
hybrid/electric vehicles (2 each). Canon had patents
exclusively in fuel cells (5) while Siemens scored
wind (3) and fuel cell (2) patents.
Geographically, Japan was the first quarter leader
among non-U.S. holders of U.S. clean energy
patents and the individual U.S. states with 114,
down 17 from the 1st quarter and down 7 from the
same period in 2010, to again claim the
geographical clean energy patent crown. California
was in second place for the third consecutive
quarter at 65 clean energy patents, up 6 over the
second quarter and up 16 compared to a year prior,
leading new third place finisher New York which
leapfrogged Michigan due to its largest quarterly
finish ever at 52 granted clean energy patents, up 17
over the 1st quarter and up 30 over a year prior.
Korea followed with 41 patents matching last
quarter’s total and up 4 over the same quarter in
2010. Longtime second place holder (and longtime
US states leader ) Michigan fell to 5th place, down
14 from the previous result and up two over last
year’s. Denmark (26) and Germany (29) trailed
with Germany up 5 over last quarter and tieing the
results of a year ago while Denmark was up 9 over
last quarter and 17 over last year’s second quarter.
(Others having significant clean energy patent totals
were Massachusetts (13) with a total identical to
that of the first quarter, while Canada and Colorado
had 9 and Connecticut had 7 (identical to the last
quarter).
Further information regarding the CEPGI is
available at
www.cleanenergypatentgrowthindex.com.
__________________________
President Obama
Expected To Sign Patent
Reform On Friday,
September 16, 2011
According to the Washington Post,President Obama
is expected to sign the Leahy-Smith America
Invents Act on Friday, September 16, 2011. That
will make September 16, 2011 the "date of
enactment," triggering some immediate changes to
U.S. patent law, and starting a short clock for other
At BFA Energy Solutions we are dedicated, focused and committed to Greatness! With Greatness comes Responsibility. We are bringing innovative advanced alternative energy solutions to market. We are also committed to providing an enhanced quality of life for the residents in the communities inwhich we operate. We pledge to:
Create Green Jobs, Pay Competitive Salaries with Benefits, Invest in K-12 Sustainability Programs, and Increase Local Tax Receipts.
Committed to Innovation and Community
www.biofuelsamericainc.com
815 E. H. Crump Blvd., Memphis, Tennessee 38126
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(Continued from page 1)
dependence on foreign oil. “$510 million US investment – with a minimum of $510M more from private industry
The joint plan calls for the three Departments to invest a total of up to $510 million, which will require substantial cost share from private industry – of at least a one to one match. USDA will take the lead on addressing feedstocks, the DOE will take the lead on technology, and the Navy will provide a market. Each department will share the $510M tab, equally.
The US government funds will be re-directed from already authorized funding, and no additional US spending will be required. The government plans to issue an RFP shortly to bring in private industry into the effort.
“To create and stabilize an industry”
“Our goal is to create and stabilize advanced biofuels industry,” commented Secretary of Agriculture Vilsack, in making the announcement. This is not a fly by night effort – it’s a commitment to real energy future. The president has asked us to make the US more competitive, and to give us real diversification in our energy choices.”
“The Defense Production Act has been on the books since the 1950s,” Navy Secretary Mabus added. “If industries are not existent, government can help industries get off the ground. I can think of no more important strategic issue than energy security.”
“We simply buy too much fuel from out of the country,” Mabus said. “The supply shocks, the price shocks, its simply unacceptable to the military. For every dollar increase in the cost of a barrel of oil, it costs the Navy $30 million.”
Partnering with the private sector
The biofuels initiative is being steered by the White House Biofuels Interagency Work Group and Rural Council, both of which are enabling greater cross-agency collaboration to strengthen rural America. Shortly, the group will issue an RFP to seek out private partners to leverage the government investment.
“Biofuels are an important part of reducing America’s dependence on foreign oil and creating jobs here at home,” said President Obama. “But supporting biofuels cannot be the role of government alone. That’s why we’re partnering with the private sector to speed development of next-generation biofuels that will help us continue to take steps towards energy independence and strengthen communities across our country.”
“This is the first time we have addressed feedstock, technology and market risk at one time,” said USDA Secretary Vilsack. “Previous efforts aimed at one or the other slowed down the process. This is a unique and historic response to the energy challenge.”
Cutting down on $300 billion spent on imported oil
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The partnership aims to reduce U.S. reliance on foreign oil and create jobs while positioning American companies and farmers to be global leaders in advanced biofuels production.
The United States spends more than $300 billion on imported crude oil per year. Producing a domestic source of energy provides a more secure alternative to imported oil and improves our energy and national security.
“By building a national biofuels industry, we are creating construction jobs, refinery jobs and economic opportunity in rural communities throughout the country,” said Agriculture Secretary Vilsack.
“As importantly, every gallon of biofuel consumed near where it is produced cuts transportation costs and, for the military, improves energy security.”
“These pioneer plants will demonstrate advanced technologies to produce infrastructure-compatible, drop-in renewable fuels from America’s abundant biomass resources,” said Energy Secretary Chu. “It will support development of a new, rural-focused industry that will replace imported crude oil with secure, renewable fuels made here in the U.S.”
In June, President Obama signed an Executive Order establishing the first White House Rural Council to build on the Administration’s robust economic strategy for rural America and make sure that continued federal investments create maximum benefit for rural Americans.
Administration officials have been working to coordinate programs across the government and encourage public-private partnerships to improve economic conditions and create jobs in rural communities.
www.biofue;sdigest.com
_________________________
Defending Clean Energy Programs in the Era of Austerity
25X’25 - On September 14, 2011, 25x’25 hosted a webinar entitled “Defending Clean Energy Programs in the Era of Austerity.” A copy of the presentations is available by clicking the link below: http://www.25x25.org/storage/25x25/documents/WebinarSlides/defending_clean_energy_programs_in_the_era_of_austerity_sept2011.pdf It includes slides used by John Jimison of the Energy Future Coalition, Carol Werner of the Environmental and Energy Study Institute, and Andy Olsen of the Environmental Law and Policy Center. Each presenter underscored the fact that we are at a critical juncture for clean energy programs. The decisions being made in Washington over the next few weeks and months will affect clean energy funding not just in 2012, but for many years to come. For this reason, 25x’25 is encouraging all of its partners to contact their elected officials to urge them to support and defend clean energy programs. These programs benefit a "triple bottom line" by creating jobs; strengthening our national security; and improving our environment. www.25x25.org ____________________________
US expected to become world's top ethanol exporter
A recent report from the U.S. DOE’s Energy Information Administration confirms what many in the ethanol industry already knew -- exporting ethanol has become big business. Rising demand for U.S. ethanol from overseas markets began in 2010 as a result of Brazil’s diminished production levels and a relaxation of trade restrictions in several countries, the agency stated in the report. But 2011 has proven to be a boom year for U.S. ethanol.
SOURCE: U.S. DOE ENERGY INFORMATION ADMINISTRATION AND U.S. CENSUS BUREAU
Exports in the first five months were more than double the amount exported during the same timeframe last year, skyrocketing up to 120 million gallons during the month of May. The EIA expects this trend to continue through at least the end of the year.
“It is likely that the United States will surpass Brazil as the world’s largest ethanol exporter due to recent supply shortages and resulting high sugar prices in Brazil,” the agency stated in its analysis. “U.S. ethanol has been relatively less expensive and has supplied markets that previously imported Brazilian ethanol.”
While Brazil’s need for U.S. ethanol to make up for its own shortfalls in supply is well known, other parts of the world with an increasing appetite for U.S. ethanol include Europe, which was formerly supplied primarily with Brazilian sugarcane ethanol, Jamaica, the United Arab Emirates and Canada.
Demand for exports has served to alleviate some of the pressure placed upon U.S. producers as they nudge ever closer to the domestic blend wall. The EIA noted that the introduction of E15 to the U.S. market could play a role in future exports, as it is possible that demand for the higher blend could absorb additional domestic production.
However, E15 is not yet legally available for sale in the U.S. and there continues to be doubt as to whether gasoline retailers will choose to invest in the infrastructure necessary to sell E15. Corn and sugar prices will also continue to have an effect on ethanol markets worldwide, as will oil prices, the EIA stated. An interesting scenario addressed by the agency is the possibility that policies regarding ethanol use will result in corn ethanol leaving the U.S. for Brazil in exchange for that country’s sugarcane ethanol.
Brazilian ethanol is considered an advanced biofuel in the U.S. renewable fuel standard (RFS) and is expected to become increasingly desirable as U.S. refiners look for an applicable source to replace non-existent cellulosic biofuel volumes. California’s low carbon fuel standard also gives preference to Brazil’s ethanol, which it considers to be considerably lower in carbon than domestically produced corn ethanol.
The irony of this scenario has not been lost on at least one ethanol producer. In comments submitted to the U.S. EPA earlier this summer, Neill McKinstray, vice president and manager of The Andersons Inc. ethanol division, urged the agency to allow corn-based ethanol to qualify as an advanced biofuel in order to prevent an ethanol swap situation between the U.S. and Brazil.
