SC Biomass Council News
Your source for the latest news about biomass in South Carolina and around the country! If you know of a story that should be posted, please contact Erika Myers.
The SCBC was featured in a recent publication from the US Department of Energy about South Carolina's emerging biomass-to-energy industry. To read the full story, go to the EERE website.
As a young organization, the SC Biomass Council can claim significant clout as it successfully passed a series of important state biomass incentives this year. It is the premiere organization in the state to offer networking opportunities, establish collaborative efforts, and promote good policy change.
As the group discussed at the July 2007 meeting, the council must take necessary steps to become financially self-reliant. The US Department of Energy grant which created this organization has expired and there are no additional funds available to keep the organization operational. The Executive Committee asked the council at the July meeting to consider requiring annual membership dues to keep the organization going and meet its minimal financial needs. No objections were raised by the attendees.
Membership dues will be used for use of facilities, food, travel expenses, website expenses, publications and educational materials, supplies, exhibits, workshops, and other items as needed. Corporate members will receive special recognition on the website. The dues structure is as follows:
Membership Dues:
$5 Student Member (no voting privilege)
$25 Regular Member
$250 Corporate Member (up to five member representatives)
$50 Each Additional Corporate Member representative above five
Each dues-paying member will be entitled to:
1. vote for Executive Committee representatives (with the exception of students);
2. serve on SC Biomass Council Committees;
3. attend SC Biomass Council meetings and bring guests; and
4. corporate members will receive special recognition on the website
From the month that the dues are received, membership renewal will be required on the first of the month in the following year. To join the organization, download and submit the Membership Form.
On June 19, the House and Senate overrode the Governor's veto of Hydrogen Bill, S.243 which included portions of H.3649, the Energy Freedom and Rural Development Act. Additionally, H.3749 was passed which included a provision for a Grants and Loans program to be administered by the Dept. of Agriculture.
Beginning July 1, 2007:
- The SC Renewable Energy Infrastructure Development Fund includes a grant program providing planning grants to aid in the time and resources required to submit grant proposals and matching grants for research and development and demonstration projects. The program will also include a low-interest revolving loan program designed to assist entities building renewable energy projects;
- The SC Hydrogen Infrastructure Development Fund provides grants to promote the development and deployment of hydrogen production, storage, distribution, and dispensing infrastructure and related products and services;
- Biofuels marketing program to promote public awareness;
- Free ethanol and biodiesel testing for SC producers;
- Increased tax credit for production of ethanol and biodiesel from alternative feedstocks, such as switchgrass, wood, waste cooking oil, animal fats, and algae;
- Requirement that school buses use B20 where feasible; and
- Requirement that construction of large state-owned buildings be "Green Buildings" and meet certain nationally recognized building standards.
Beginning October 1, 2007:
- Sales tax exemption for equipment operated by, used to produce, distribute, manufacture, or research hydrogen or fuel cells. Also includes building materials and machinery used by a research district.
Beginning January 1, 2008:
- Income tax credit of up to $2,000 for plug-in hybrid vehicles purchases;
- Tax credits of up to $100,000 for research and development of renewable fuel feedstocks best suited for South Carolina, such as cellulosic ethanol and algae-based biodiesel;
- Income tax credits for contributions made by a taxpayer to the South Carolina Hydrogen Infrastructure Development Fund;
- Tax credits for the purchase and installation of equipment to produce electricity and gas from biomass resources including wood and wood waste, agricultural and animal waste, sewage, landfill gas, and other organic materials; and
- A requirement that all state-owned diesel pumps provide a minimum of five percent biodiesel.
Beginning July 1, 2008:
- Tax rebates up to $300 for the purchase or lease of vehicles that are flex-fuel (ethanol), hybrid, electric, or fuel efficient with an EPA city fuel economy of 30 mpg or greater;
- Incentive payments for biomass energy users ranging from one cent per kilowatt-hour or 9 cents per therm.
Beginning July 1, 2009:
- Five cents per gallon incentive payments available for retailers selling B20 biodiesel and E85 ethanol.
The Virginia based company plans to expand operations into South Carolina in late 2007 to build a 10 million gallon per year plant. The $8.5 million facility will generate 15 jobs. Company executives stated the primary reason they chose South Carolina is because of the friendly business atmosphere and the state tax incentives available for renewable fuels.
Renewable fuel production has increased rapidly in South Carolina due in part to the large demand and public availability of renewable fuels as well as significant state tax incentives passed in 2006 and 2007 which provide between twenty to thirty cents per gallon for biodiesel and ethanol and up to twenty-five percent of the costs of renewable fuel production equipment.
Greenlight Biofuels will use vegetable oils, animals fats, and recycled restaurant grease to make the biodiesel which will be sold to local retail stations and also used for home heating oil and off-road motors.
Greenlight Biofuels will join two other companies already producing biodiesel in North Charleston and Taylors and three other biodiesel companies constructing facilities in Aiken, Jasper, and York County. For more information, visit the Greenlight Biofuels website.
The SC Biomass Council was asked to circulate information about the federal farm bill and a potential amendment that would create crop insurance for dedicated biofuel feedstock crops. Florida has put together a draft letter to their congressman and if you are interested, you can amend the letter for the same purposes as they apply in South Carolina and send to SC Congressmen. Draft Letter.
There is international discussion about what to do with the waste char remaining after biomass burning and how to properly dispose of it. Archaeologists discovered ancient techniques of using this char to amend soils in the Amazon basin. Since then soil scientists have done studies to determine if this char actually does improve soil quality and have identified 'agrichar' as an additional source of income to help make biomass-to-energy projects economically feasible. John Wilson of the Southern Alliance for Clean Energy put together a PowerPoint presentation from a recent International Conference studying Agrichar. Click here to download the Agrichar PowerPoint.
In its second full council meeting of the year on Thursday, April 12th at the Clemson Sandhills Research and Education Center in Columbia, over 55 members and guests attended. Representatives from RPM Ecosystems and the 25 X '25 Initiative presented information about their projects to attendees and answered questions. The Legislative Task Force updated the council on the status of the Energy Freedom and Rural Development Act, H.3649. Chairman, Nick Rigas handed out a prospectus about next steps for the council and urged members to consider implementing a seven to nine-member Executive Board. The council set forth a motion and passed the proposal to establish an Executive Committee which would then decide what the council's role would be and how to acquire future funding for events and projects. Nick Rigas was also selected to serve an additional year as the council chairman and will be selecting members of the Executive Board in the near future. After the formal meeting, there was a social with food supplied by the SC Energy Office from Palmetto Pig B-B-Q.
Fort Jackson will hold a special demonstration on environmentally friendly and sustainable interior products including furniture, paints, and flooring. The demonstration will begin at 10am in the Directorate of Human Resources building, located at 5450 Strom Thurmond Blvd. For more information, please contact Ms. Simpkins at (803) 751-7659.
Farmers & Truckers Biodiesel recently announced plans to move the company's biodiesel production operation from Georgia to Aiken County to take advantage of South Carolina's state tax credits for alternative fuels. Farmers & Truckers will spend $1.4 million to convert a Warrenville warehouse into a new biodiesel facility. The plant will eventually produce 20 million gallons of fuel and within three years employ 45 workers. The facility will use soy oil, chicken fat, and cotton seed oil to produce the biodiesel. Click here for a copy of the press release.
After a long year of meetings, discussion, revisions, and approvals part of the Biomass Council recommendations have been officially submitted in the SC General Assembly! House member Billy Witherspoon, introduced H.3649, the 'Energy Freedom and Rural Development Act' which you can read at http://www.scstatehouse.net/cgi-bin/query.exe?first=DOC&querytext=H.3649&category=Legislation&session=117&conid=2654899&result_pos=0&keyval=1173649.
Thank you to everyone for making this bill possible! Now more then ever the Biomass Council needs your support to see this bill all the way through. If you would like to join the Legislative Task Force efforts, please contact Bob Scott at (803) 798-4170. If you have questions or would like your organization to join the Coalition list please contact Erika Hartwig at (803)737-8030.
California dot-com billionaire Vinod Khosla recently announced his plans to break ground on the nation's first wood-to-ethanol factory in the Georgia town of Soperton, appropriately nicknamed the "Million Pines City," next spring.
Range Fuels Inc.'s estimated $225 million project will convert pine tree waste into ethanol that one day might help run the state's cars, trucks, and tractors. The company's system, called K2, uses a two step thermo-chemical conversion process: The first step converts biomass to synthetic gas and the second step converts the gas to ethanol. Georgia appropriated $6.5 million in state incentives to attract Range Fuels Inc.
Cellulosic ethanol, made from trees, sugar cane, switchgrass and other forms of biomass, has the potential to substantially reduce America's consumption of gasoline. The South Carolina Biomass Council has made recommendations to the South Carolina General Assembly for similar incentives for the renewable fuels industry.
The South Carolina Energy Office, the Spinx Company, the South Carolina Department of Agriculture, Carolina Biodiesel, the South Carolina Biomass Council, and the SC Lowcountry Environmental Education Program were special guests at a showing of the Earthrace Biodiesel Powerboat in Charleston on February 9th. Earthrace runs on 100% biodiesel and is in a bid to break the world record for circumnavigating the globe in a powerboat using only renewable fuels. The Spinx Company, which is the largest distributor of renewable fuels in South Carolina, generously donated 2,000 gallons of biodiesel to help Earthrace complete its next leg. Please visit the website for more information about Earthrace.
Biodiesel interest groups standing in front of Earthrace at the Charleston Aquarium.
Governor Sonny Perdue recently unveiled a proposal calls that would exempt sales taxes for materials and equipment used in the construction of biofuel facilities in Georgia, including ethanol, biodiesel and butanol. All three alternative fuels are derived from agricultural products and biomass grown in the state, including poultry fat, peanut oil and cottonseed oil. The tax savings would cost the state $2 million to $4 million a year in revenue. Click here for more information about Biofuel Plans.
Congressman James E. Clyburn recently gave a speech, Biofuels Bring New Hope for Rural America, to the Congressional Black Caucus Foundation about the ability of bioenergy to revitalize rural communities, particularly along the I-95 corridor. Congressmen Clyburn emphasized the biofuel activity in South Carolina and the recent legislative incentives passed in June 2006. Click here for a complete copy of his speech, or click here for more information about tax incentives.
BMW Manufacturing in Spartanburg has taken the use of landfill gas beyond the production of energy with the latest phase of the gas-to-energy project. BMW Manufacturing will be the first automotive company to use "green" energy to fuel its painting facility - the largest consumer of energy within the factory. The paint shop will utilize landfill gas to fuel 23 oven burners and to provide indirect heat for the area. This will greatly reduce the reliance on natural gas while further utilizing the previously untapped resource. In total, this expansion project will achieve a CO2 reduction of approximately 17,000 tons per year. Click here for more information about the BWM Manufacturing story.
Story adapted from BMW Manufacturing E-Newsletter, Summer 2006.
In a feature article in the July-August 2006 edition of the Department of Energy's State Energy Program's bimonthly newsletter, Conservation Update, South Carolina was highlighted for biomass initiatives. "South Carolina Propels Market for Alternative Fuels" described the various programs, legislative highlights, and business activity related to biofuels in the state. The entire article can be found online.
In an article by Fortune Magazine, rumors have surfaced that Wal-Mart may be interested in selling ethanol at its eight gas stations and 380 Sam's Club stations, in addition to creating a partnership with Murphy's Oil which operates 946 gas stations in Wal-Mart parking lots. The addition of these pumps would more then double the number of ethanol pumps available to the public. There are still unresolved issues with selling ethanol, like finding ethanol that could be cost competitive with gasoline. Speculators reason that Wal-Mart would want to sell ethanol as it would be a new profit sector for the company and it would be part of Wal-Mart's efforts to make its business practices better for the environment.
Columbia residents enjoyed a special visit from Austin Energy representative, Fred Blood, on July 18th, 2006. Blood traveled through Columbia to present a short video and PowerPoint presentation about 'Plug-In Partners', a national campaign intended to build a market for plug-in hybrid electric vehicles (PHEVs).
PHEVs could dramatically decrease dependence on foreign oil, reduce greenhouse gas emissions, and lower fuel costs for the average American driver. Based on average American driving patterns a PHEV could get upwards of 100+ miles per gallon (mpg). If combined with flexible fuel engines, PHEVs would be able to go even further on a gallon of gasoline with some estimates at nearly 500+mpg.
The PHEV works using the same technology as existing hybrid electric motors, but have a more powerful battery that can be recharged in a standard home outlet. The battery packs can power the vehicle anywhere from 20 to 60 miles and since more then half of cars in America are driven 25-miles a day or less, a plug-in with a 25-mile battery could eliminate gasoline use in the daily commute of millions of Americans.
Unlike some "future" solutions to the oil problem, PHEV technology already exists. DaimlerChrysler developed a prototype PHEV commercial van, and other auto manufacturers have converted everything from compact cars to industrial-sized trucks. Though prototypes are expensive, if mass produced, the cost of a PHEV battery will add only $2,000-3,000 to the cost of a conventional hybrid - the equivalent of adding a moon roof or leather seats! A study reports a mass-produced PHEV would be more economical then a conventional vehicle or hybrid, because of final cost savings. Fred Blood estimated the battery pack could easily pay for itself in a little over two years and endure for the operating life of the automobile.
The "electric" equivalent gallon of gasoline would only cost between 70-80 cents at current electric rates compared to the $2.50+ national average gasoline price. The current electrical generating capacity of existing power plants would be sufficient to charge millions of PHEVs since over 40% of them sit idle or operate at a reduced load overnight, when most PHEVs would be recharged.
As PHEVs continue to be developed and marketed it will be essential that the alternative transportation fuels sector promote flexible fuel motors to not only stretch a gallon of gasoline, but to also create more opportunities for American farmers and keep money in the local economy.
For more information about the Plug-In Partners campaign please visit www.pluginpartners.org. Other information including a "soft" fleet order form, a petition for car manufacturers, and samples of City Council and County Court resolutions are available on the site.
On July 12th, the South Carolina Biomass Council informally met for an evening of fun and learning. The Clemson University Sandhills Research Center graciously hosted participants for the first social event and dinner.
The Liquid Fuels Committee and Gaseous Fuels Committee held their first meeting prior to the social event and dinner. According to Wendy Bell, Chair of the Liquid Fuels Committee, "This was a great time for members to introduce themselves and determine the mission and purpose of the committee." The Bio-Products, Solid Fuels, and Public Policy Committees plan to meet prior to the September council meeting.
The social event was held at the new Lake House located at the Sandhills Research Center. Drinks and barbecue were provided by Mac Horton of the Clemson Institute for Economic and Community Development, and speakers for the evening included council members Liz Kress of Santee Cooper and Bill Ayers of Carolina Biofuels. Kress discussed future renewable energy projects at Santee Cooper and the reason why plans to build a biomass co-fired power plant unfortunately fell through. Ayers described his company's new biodiesel production facility in Greenville County. Ayers challenged the farming community to grow more crops that could be used as biodiesel feedstock and expressed commitment to buying locally grown soy and other oils instead of importing from abroad.
Interest in the South Carolina Biomass Council continues to grow as attendance and participation at the event indicates. Chairman Nick Rigas stated, "I fully expect the council to significantly increase biomass energy in South Carolina through cooperative projects and successful marketing. This is just the beginning."
(story from DOE Progress Alerts)
In another move indicating the President's leadership on renewable energy sources and technology, DaimlerChrysler, Ford and General Motors today announced an effort to double the number of FlexFuel vehicles that they manufacture by 2010.
The President, in his State of the Union address, called for America to address an addiction to oil and launched the Advanced Energy Initiative to change the way we power our homes, offices and vehicles. Today's announcement by the Big 3 automakers is demonstrative of how the American people and corporate citizens are rising to this national challenge.
During an April visit to Detroit, Secretary of Energy Samuel W. Bodman further encouraged the leaders in the automotive industry that the nation needs more production of flex fuel vehicles of all vehicle types and classes. To that end DOE has been working collaboratively and continuously with its automotive partners in a dialogue to establish ambitious, but realizable production stretch targets. Today's announcement confirms the benefit of public/private partnerships and the enhanced dialogue that results.
"Most automakers are rising to the President's call and doing their part to maximize the way that private markets can serve the public good," said Alexander Karsner, Assistant Secretary for Energy Efficiency and Renewable Energy. "We look forward to continuing to grow a new energy economy together for the 21st century".
JW Aluminum recently signed a contract with Berkeley County to utilize a readily available source of green power - landfill gas. JW Aluminum will build a new smelter plant powered by methane gas from the Berkeley County landfill. Methane gas is a by-product of decomposing trash and considered a potent greenhouse gas. However, when burned, this otherwise harmful gas becomes a source of renewable energy. The $5 million dollar project is among the first of its kind in the country according to the United States Environmental Protection Agency.
According to John Clark, director of the S.C. Energy Office, the agreement is a win-win for the company and the state. "The JW Aluminum smelter not only means better air quality and a reliable, local energy source of energy for businesses, but is good news for the state's economy. Instead of purchasing fossil fuels from elsewhere, the company can spend the money it saves here. Giving JW Aluminum a steady supply of natural gas with a stable price. helps their profitability and that profitability helps keep jobs." The county can expect to be paid a quarter million dollars a year for the gas in addition to applicable property taxes.
Other environmental spin-off projects are also being developed. The county plans to use the heat from the aluminum plant to dry county sewage sludge to sell as fertilizer. Additionally, the county plans to expand its wastewater treatment plant to the landfill where treated water will be sent to Carolina Nurseries for irrigation. Additional methane energy will also power the County Water and Sanitation Authority offices or sold to other businesses.
For more information contact JW Aluminum at 843/764-8272 or sammypeek@jwaluminum.com or visit www.charleston-for-business.com.
During the first week of June 2006 the South Carolina State Legislature passed a component of the budget bill that would allocate funds towards the purchase of alternative fueled vehicles and tax rebates for the purchase of ethanol and biodiesel both for consumers and producers. Additionally, the bill also creates a proviso that would develop a critical role for the SC Energy Office and the SC Biomass Council. Click here for the full text of the budget document. The budget still has to be signed by Governor Mark Sanford, but analysts predict this legislation will pass without serious issues.
In another piece of legislation the South Carolina State Legislature passed S.1245 which creates tax credits for manufacturers to use landfill gas to power their facilities. Click here for more details about S.1245.
