Clean Fuel Projects Were The Next Big Thing. Now They’re Collapsing

[rangerrebew]

Clean Fuel Projects Were The Next Big Thing. Now They’re Collapsing
by Amrith Ramkumar  Aug 20, 2024 
 

Startups promising to power planes, ships, and trucks with clean fuel are sputtering before they get off the ground, showing how hard it will be to wean many industries off oil and gas. [emphasis, links added]

A company backed by United Airlines that raised hundreds of millions of dollars to turn trash into jet fuel appears to have shut down.


Another, backed by Airbus, JetBlue, and GE Aerospace, that was working on using hydrogen to power planes went bust.

Chevron, BP, and Shell, meanwhile, are scaling back projects that make biofuels from cooking fats, oils, greases, and plant material.

https://climatechangedispatch.com/clean-fuel-projects-were-the-next-big-thing-now-theyre-collapsing/

[Smokin Joe]

Without subsidies and military contracts? Did that make the difference?

[IsailedawayfromFR]

Thinking renewables are a "clean fuel" was always a scam.

Thinking Solar and Wind is 'clean' is nonsensical as the enormous energy to make their parts, ship and install them give little credence to them being 'Clean'.  Same with EVs and their batteries. 

Talked with a wind turbine guy once and you cannot believe the gallons of grease required to lubricate that immense blades

The 'cleanest' fuel is undoubtedly natural gas.  Produced naturally, affordable and packed with potential energy easily transformed into kinetic energy by a spark.

God gave man this in abundance and all we have to do is extract it

[IsailedawayfromFR]

Oh, and I forgot the scam of the 'Renewables' when it comes to biofuels, another place where we taxpayers have been throwing money down the toilet bowl

Biofuel Delusion Is Unraveling, Failures Galore Despite Massive Subsidies
Energy Luddism is a money pit
Published: August 23, 2024

The biofuel industry, once heralded as the golden child of renewable energy, is now facing a series of catastrophic failures that underscore its inherent inefficiency and lack of economic viability. The dream of turning agricultural products into clean fuel has been shattered by the harsh realities of economics, technology, and logistics. Despite the grand promises made by industry leaders and policymakers, biofuel companies have struggled to deliver on their claims, leading to a cascade of failures that highlight the fundamental flaws in this sector.

The Biofuel Industry: A Failed Experiment
The concept of biofuels gained significant traction in the early 2000s as a potential solution to reduce carbon emissions and dependence on fossil fuels. Governments around the world, particularly in the United States and Europe, poured billions of dollars into subsidies and incentives to kickstart this industry. The idea was simple: convert crops like corn, soy, and sugarcane into ethanol or biodiesel, which could then be used as cleaner alternatives to gasoline and diesel.

However, the biofuel industry has failed to live up to its hype. Many companies, once considered the darlings of the green energy movement, have gone bankrupt or are on the brink of collapse. The Wall Street Journal article highlights the struggles of these companies, pointing out that

“Startups promising to power planes, ships and trucks with clean fuel are sputtering before they get off the ground, showing how hard it will be to wean many industries off oil and gas.”

“A company backed by United Airlines that raised hundreds of millions of dollars to turn trash into jet fuel appears to have shut down.”

“Another, backed by Airbus, JetBlue and GE Aerospace, that was working on using hydrogen to power planes went bust.”

“Chevron, BP and Shell, meanwhile, are scaling back projects to make biofuels from cooking fats, oils, greases and plant material.”

The Inefficiency of Biofuels
One of the primary reasons for the failure of biofuel companies is the inherent inefficiency of the process. Turning crops into fuel is an energy-intensive process that often results in a net loss of energy. In other words, the amount of energy required to grow, harvest, and process the crops into biofuel can exceed the energy content of the final product. This inefficiency makes biofuels economically unviable without significant government subsidies.

Moreover, the use of food crops for fuel production has raised ethical concerns. The diversion of crops like corn and soy from food production to fuel production has led to higher food prices and food shortages in some parts of the world. This has sparked criticism that biofuels are contributing to global hunger rather than solving the energy crisis.

Economic Realities: The Collapse of Biofuel Companies
The economic realities of the biofuel industry have caught up with many companies, leading to a wave of bankruptcies and closures. The article notes that:

“Many clean-fuel projects have become money pits, in part because of the great amounts of power they need.”

“High interest rates, supply-chain disruptions and expensive power-grid upgrades have driven up electricity prices.”

“This observation is critical because it highlights that the failures are not isolated incidents but rather symptomatic of deeper issues within the industry.”

Several factors have contributed to the economic struggles of biofuel companies. First, the price volatility of oil has made it difficult for biofuels to compete in the market. When oil prices are low, biofuels become less attractive to consumers and investors. Second, the high costs associated with biofuel production have made it challenging for companies to achieve profitability. Even with government subsidies, many biofuel companies have struggled to break even.

“The excitement of the early days has not lived up to the hype,” said Andy Marsh, chief executive of Plug Power, a startup that recently opened one of the country’s first plants making green hydrogen, a potential replacement for fossil fuels in industries such as steel making and chemical production.

Shares of Plug Power have tumbled more than 90% since the passage of the U.S. climate law two years ago. Shares of biofuels startup Gevo, where Marsh is a board member, are down about 80% in that span.

The failures and delays are all but extinguishing the early optimism after the climate law passed. Rising costs have pushed out project timelines and made it more difficult for companies to raise money. The government’s delays in completing tax credits are adding to the challenges.

This is a common theme in the biofuel industry, where ambitious projects often fail to translate into viable business models.
https://freewestmedia.com/2024/08/23/biofuel-delusion-is-unraveling-failures-galore-despite-massive-subsidies/

[IsailedawayfromFR]

US Natural Gas Is America's Clean Energy Standard
BY TYLER DURDEN
FRIDAY, AUG 23, 2024

Abundant and affordable energy drives America’s powerful and productive economy. That’s been true throughout our nation’s history, and America’s recent achievement of energy independence provides the most concrete illustration of that fact.

But to keep our nation firing on all eight cylinders, we need government policies that prioritize providing adequate, reliable and secure domestic energy supplies.

Our recently published report, “Grading the Grid,” reviewed a variety of potential energy sources. Two — natural gas and nuclear — stood out as the most sensible energy options for the future.

No other energy source fits the abundant, affordable and secure prescription as well as American natural gas. Despite increased use, new drilling technologies, such as fracking, produced a 79% increase in annual natural gas production in the U.S. from 2007 to 2021.

As we produce more of it, prices are dropping. American families saved $147 billion over the last decade because of more affordable natural gas. American Gas Association testimony before the U.S. House Committee on Oversight and Accountability indicated that households that use natural gas for heating, cooking and other appliances save an average of $1,068 per year compared to homes using electricity for such appliances. Natural gas powered 36% of America’s total energy needs in 2023 and 43% of U.S. electricity generation.

Natural gas also helps improve air quality. Americans are enjoying 78% cleaner air since 1970. The transition from older coal-fueled technologies to more efficient natural gas turbines for electricity generation is the primary reason that the U.S. is a world leader in lowering carbon emissions. Energy-related carbon dioxide emissions have decreased by more than 18% since 2007, while electricity generation from natural gas increased over 88%. Natural gas, with its distinctive blue flame, has cleanly powered American homes and industry for many decades.

Natural gas should be the standard by which other hydrocarbon energy sources are measured, such as fuel oil, kerosene, petroleum and coal. Pipeline-quality natural gas — gas that has been processed to remove contaminants and to meet specific quality standards — sets a high but reasonable bar for clean energy. Policymakers in Washington D.C. and state capitals should craft legislation that targets these standards of affordability, reliability and cleanliness that natural gas achieves.

Using natural gas as the standard could encourage the development of technologies, like catalysts or formate, that allow us to continue using hydrocarbons, like fuel oil, kerosene, diesel, or coal, to produce energy and then use captured greenhouse gas emissions associated with their combustion to generate useable fuels.

These are engineering challenges that are both economically feasible and technologically sound. They are also exactly the kind of ground-breaking idea that the U.S., the most innovative society on earth, is known for. There is no reason to take affordable and reliable energy sources off the table when we can rely on American ingenuity to produce clean electricity from what has traditionally been allowed to escape into the air as a waste product

Nuclear power is the second most promising energy source. It is also affordable like natural gas, but even cleaner and more reliable. American nuclear plants produce effectively emission-free electricity and can do so 24-7-365 for many decades.

Nuclear power has supplied about 20% of the electricity needed in the U.S. since the 1990s. However, a combination of misinformation and government overregulation of nuclear power limits its expansion. It can, and should, be America’s largest source of baseload grid-scale electricity generation.

America’s increasing population will need more electricity in the future. As data centers and artificial intelligence become more prevalent, nuclear and natural gas become even more important. Former U.S. Energy Secretary Ernest Moniz highlighted how the expansion of artificial intelligence and data centers are rapidly growing electricity demand.

If America is to maintain and grow its economic prosperity, Moniz explained at the 2024 CERAWeek meeting in Houston, it needs a far more reliable electricity supply — what nuclear and natural gas provide. “tilities will have to lean more heavily on natural gas, coal and nuclear plants, and perhaps support the construction of new gas plants to help meet spikes in demand," he said. “We’re not going to build 100 gigawatts of new renewables in a few years.”

Energy affordability and independence are the new keys to American prosperity. Nearly 60 million Americans consider energy affordability a factor when they decide who they will support in an election. Hardworking Americans deserve a sensible energy strategy that maximizes the use of our existing nuclear plants and our abundant supplies of natural gas. Energy policy must also encourage private investments in innovation that can help other energy sources meet the pricing, reliability and cleanliness standards of American natural gas.
https://www.zerohedge.com/energy/us-natural-gas-americas-clean-energy-standard

[catfish1957]

Back in the mid to late '00's I kept getting these calls from our R & D people who were developing the early research around bio-fuels.

3 of my employees got curious and nosy in my office, and asked where the call came from.

When I told them it was people in our company trying to make diesel out of algae......  The place busted out in the loudest laughter I have heard in my life.  They were convinced I was bullshitting them.  One of the 3 was convinced it was time to sell his stock.   

[IsailedawayfromFR]

https://www.zerohedge.com/political/americas-energy-divide-how-democrats-and-republicans-feel

[IsailedawayfromFR]

Back in the mid to late '00's I kept getting these calls from our R & D people who were developing the early research around bio-fuels.

3 of my employees got curious and nosy in my office, and asked where the call came from.

When I told them it was people in our company trying to make diesel out of algae......  The place busted out in the loudest laughter I have heard in my life.  They were convinced I was bullshitting them.  One of the 3 was convinced it was time to sell his stock.   

BY next decade, crude will be severely limited compared to today, and in far greater demand.  There is simply no way unconventional crude production can hold up

Making synthetic gasoline, diesel, kerosene etc out of natural gas via the Fischer-Tropsch process will be the primary way we will continue having access to needed fuels.  There is virtually an unlimited production supply of natural gas to be harnessed, and it will cause a widespread reduction in emissions to boot.  Natural gas is already used to produce most of the fertilizer used in the world.