New Biofuel Industry Group Launches

A group of biofuel producers announced the formation of the Low Carbon Synthetic Fuels Association (LCSFA) to advance the interests of the Biomass-to-Liquids (BtL) industry.

BtL is produced through the gasification of renewable biomass and
the subsequent conversion of the gasified biomass using the
Fischer-Tropsch (F-T) synthesis process. The renewable fuels produced
are predominantly synthetic diesel and jet fuel, which are nearly
identical to current crude oil-derived fuels, although significantly
cleaner.

BtL fuels can be produced from non-food organic materials such as
wood waste from urban recycling programs, paper mills or forestry
residues, without increasing land use. Moreover, BtL fuels are
compatible with the existing fuels infrastructure.

The LCSFA was formed to address "existing legislative and regulatory
inequities that have slowed or even hindered the development of
advanced biofuels," according to a release. The group said federal
programs have resulted in incentives that do not necessarily promote or
reward the best performing and most environmentally friendly fuels.

Members including TRI, Rentech Inc. (AMEX: RTK), Velocys, CHOREN, Flambeau River Biofuels/Johnson Timber, AP Fuels and World GTL.

"Through the LCSFA, participants along the whole value chain (from biomass feedstock producers, gasification and F-T technology providers, and project developers, to consumers of the product and manufacturers of affected engines, vehicles and equipment) can speak with one voice to achieve needed improvements and incentives,
" the group said.

On September 25, the LCSFA urged the U.S. Environmental Protection Agency (EPA) in its comments to promote clean, renewable advanced biofuels that improve air quality, reduce GHG emissions, and are compatible with the existing engines, equipment and fuels infrastructure.

This week, the EPA will begin considering comments on its “Changes to Renewable Fuel Standard Program” (RFS2 Proposal). The LCSFA’s comments are endorsed by a range of partners including Auburn University, Audi America, Chemrec AB, Mercedes Benz USA, Pacific Renewable Fuels, Renewable Energy Institute International, and Volkswagen.

The expansion of the Renewable Fuels Standard by Congress creates substantial mandates for advanced biofuels. According to Jim McVaney, Vice President, Government Affairs for Rentech Inc., “A well constructed renewable fuels standard that rewards fuels for their quality, performance and ability to reduce emissions will clearly be helpful to the growth of BtL fuels.”

According to William Guerry, who serves as General Counsel and represents the LCSFA before EPA and other government entities, “Through the implementation of the RFS2, the EPA has the opportunity to avoid picking favorites and move toward a regulatory structure that sets goals and rewards the best technology solutions. This will give fuel producers, marketers and even consumers greater flexibility when deciding how they comply with the new, higher mandates for renewable fuel use.”

In Related News…

In a report released last week, the Government Accountability Office said a federal tax incentive granted to ethanol blenders is unnecessary and may no longer be needed to stimulate the production of corn-based fuel.

Read the Dow Jones report at the link below.

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