Three Ethanol Tax Credits Are Extended For 2013

2013 begins on a positive note for the Ethanol,  Biofuel, and Wind Energy Industries as the American Taxpayer Relief Act of 2012 extended three ethanol tax credits for 2013 and extended the Wind Energy production tax credit.

Growth Energy, the group leading national awareness of ethanol,  released the following statement:

“I commend both the Senate and the House of Representatives for recognizing the importance of renewable fuels and acting to extend both the cellulosic producer tax credit and the alternative fuel infrastructure tax credit through 2013…”

The full statement can be read on Growth Energy’s Website

The major ethanol benefactor of these tax credits is cellulosic ethanol, which is produced using non-edible portions of plant life and other non-food sources, which include municipal waste.  Although still in the development stages cellulosic ethanol has great potential to be a viable source of fuel for the future.   A number of full scale production plants are in development in the U.S. and globally a number of cellulosic plants are operating successfully.

Algae which has shown tremendous promise in scientific studies as an ethanol producing agent was also another ethanol source material added to the tax credit.  Biodiesel production tax credits were also extended for the next two years.

The Wind Industry had put a number of projects on hold until the tax credits were reinstated .  The benefits of these tax breaks for the Wind Industry may not be felt until 2014 when a lot of these projects are completed.

In 2012 the standard corn producing ethanol tax credit in the U.S. expired.  Since its expiration the ethanol industry has struggled, largely due to a drought, but it has been able to sustain itself and the implementation of E15 will further help it to succeed. The goal of the tax credits is to encourage the production of new renewable sources of fuel that could have potentially long term benefits in helping the U.S. achieve fuel independence.

The Plant That Could Change The Future of Biofuels

Camelina is a crop that has traditionally been used to make
vegetable oil and other cooking oils as well as animal feed.  Over the past decade research done on this
plant has shown it to be a very cost effective and efficient plant in regards
to making biofuel.

Camelina oil’s potential as a biofuel stems from the fact that
it is cheap to produce and grow.  This
crop can be grown in the cold, and doesn’t require irrigation or that much
water to develop.   The U.S. Department of Agriculture has shown
that Camelina can be grown in marginal lands with a limited use of
petrochemicals and fertilizer.  It has
low agricultural inputs and it has high oil content in its seeds making it
ideal for growing on marginal lands.  The high oil content ultimately allows
Camelina to generate more biofuel.

Camelina also shows potential as a rotational crop that
agrees with wheat.  It is also classified
as a second generation biofuel which means that Camelina is not edible, and as
a result it will not compete with food crops.

Camelina has tested well as a biodiesel producing fuel in
blends with petroleum and without.  Early
in 2011 the U.S. military successfully tested a 50/50 fuel blend of petroleum and a Camelina
based biofuel on one of their F-22 Raptors.
The plane was able to reach a speed of 1.5 mach without using the
engine’s afterburner.

Camelina also tested well without petroleum in its fuel blend and outside military testing.  In 2009 Japan Airlines tested a 100% blended biofuel in one
of their Boeing 747’s.  The pilots
performing the test reported that the biofuel fueled 747 ran more efficiently
than using 100% traditional jet fuel (kerosene).  The biofuel mixture used in these tests
contained 84% Camelina, further demonstrating this crop’s potential.

Successful tests such as these allowed the U.S. government in October of 2011  to give SarTec
Corporation a $500,000 grant to enhance the use of inedible crops in biofuel
production.  This biofuel project will
teach farmers how to grow Camelina and Pennycress with the goal being to find
an efficient way of producing these crops on a commercial scale.

Should the commercialization of Camelina oil as a biofuel be successful, more of it could be seen in the future.

You can read more about Camelina by clicking the links
below.

Sources:

http://www.consumerenergyreport.com/2010/05/06/is-camelina-the-next-jatropha/

F-22 Test http://www.businesswire.com/news/home/20110321006869/en/Camelina-Based-Biofuel-Breaks-Sound-Barrier-U.S.-Air

Japan Airlines Test http://www.treehugger.com/files/2009/01/japan-airlines-finds-biofuel-more-efficient-than-petro-fuel-in-test-flight.php

SarTec  Corporation
Biodiesel Project  http://www.sacbee.com/2011/10/05/3963162/sartec-corporation-awarded-500000.html