Biofuels in Europe: Part 3

  • Jühnde’s biomass power plant runs 24/7 and gets fed manure and grains every day. (Photo by Sadie Babits)

People fed up with hearing
about an energy crisis talk
about going off the grid.
In the US, the solution is
to install solar panels on
your roof or put up a wind
turbine. But a village in
Germany has taken a different
approach. In the final part
of our three-part series on
biofuels in Europe, Sadie
Babits explains:

Transcript

People fed up with hearing
about an energy crisis talk
about going off the grid.
In the US, the solution is
to install solar panels on
your roof or put up a wind
turbine. But a village in
Germany has taken a different
approach. In the final part
of our three-part series on
biofuels in Europe, Sadie
Babits explains:

The village of Juhnde sits between rolling farmland and woods. The first buildings went up more than a thousand years ago. It looks like a lot of German villages – narrow streets, terra cotta roofs, and a towering church steeple. But talk to anyone here and they’ll tell you Juhnde is no ordinary town. It’s the first community in Germany to be powered and heated by cow manure and grain.

“This is the biogas power station on this side.“

That’s Gerd Paffenholz. He’s lived here in Juhnde for 20 years. He volunteers to show visitors, like me, the village’s bio-energy plant.

“This is the wood heating system and what you don’t see is the network that deliver the hot water in the ground.”

Paffenholz stands on top of an underground storage tank. The liquid manure in here gets pumped over to a massive green tank. That’s the anerobic digester. There, micro-organisms have a hay day eating manure and grains supplied by farmers in Juhnde. The bacteria create biogas, which then gets combusted into heat and electricity. It’s pretty silent outside the power station but open the door…

(engine sound)

That’s the sound of 700 kilowatts of power being generated. The electricity gets sent to the public network. It provides this village of 750 people with renewable power. There’s an added bonus – energy that’s normally lost while making biogas gets captured and is used to heat water. That hot water gets delivered through a series of underground pipes to heat most of the homes in Juhnde.

The village’s bioenergy plant went live five years ago. The price tag? Nearly 8 million dollars. The money came through a government grant and from residents who each ponied up thousands of dollars to join the plant cooperative. The village has also cut its greenhouse gas emissions in half already meeting targets set by the European Union for 2050.

“It shows you what some wise investments and collective thinking can make happen.”

That’s Jim McMillan. He researches biofuels at the National Renewable Energy Laboratory in Boulder, Colorado. He says Juhnde has created an attractive model that could work in the Northern US and Canada where people are more remote and winters are long and hard.

“It’s a good model but Europe, I mean, they’re built out much more than we are and they are doing a lot more in building. They’re density of building, the size of their square foot of their homes are much more right size and so these solutions are easier to implement there than they are here I mean we have a lot more big homes that require a lot more heat.”

Our attitudes are different too. It took several years to get Juhnde’s residents to buy into the idea of going off the grid but now most everyone is on board. Here in the U.S. we’re a lot more individualistic. But McMillan still sees a lot of promise in what Juhnde accomplished.

“So one village is a good example but we need to apply it across the board.”


Other villages in Germany are building bio energy plants. In the U.S. a few towns are attempting parts of Juhnde’s efforts. Reynolds, Indiana replaced the town’s vehicle fleet with cars and trucks that run on bio fuel. It’s now working with a company to turn algae into power. And in Grand Marais, Minnesota, they want to build a central heating system for the town that burns wood chips from the local saw mill.

For The Environment Report, I’m Sadie Babits.

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Biofuels in Europe: Part 2

  • Erhard Thäle and his wife grow organic crops like corn, peas and rye in these fields. They’ve lost money the last three years. Thäle know wants to sell his crops for energy. (Photo by Sadie Babits)

Farmers are finding they can
make more money selling crops
for energy than for food. A third
of all corn grown in the US gets
turned into ethanol. It’s tough
to balance the need for energy
and food when millions around
the world die from starvation each
year. Still, farmers are reconsidering
their roles – including in Germany.
In the second part of our three-part
series on biofuels in Europe, Sadie
Babits meets with one German
farmer who wants to make the switch
and become an energy farmer:

Transcript

Farmers are finding they can
make more money selling crops
for energy than for food. A third
of all corn grown in the US gets
turned into ethanol. It’s tough
to balance the need for energy
and food when millions around
the world die from starvation each
year. Still, farmers are reconsidering
their roles – including in Germany.
In the second part of our three-part
series on biofuels in Europe, Sadie
Babits meets with one German
farmer who wants to make the switch
and become an energy farmer:

Erhard Thale jokes a lot about being an organic farmer. It’s about all he can do.

“He has like his corn harvest from two years ago is still lying down on his farm so it’s not sold on the market.”

It’s hard to imagine. We’re outside Ludwigsfelde not too far from Berlin. Thale’s land looks green and healthy – not bad for late fall. But looks can be deceiving. Thale says he’s lost money for the past three years. He blames his land and a volatile world market.

“Then My wife comes and asks, ‘where do we go from here? Piggybank is empty. Money gone.’”

Thale says he can make more money selling his organic corn and rye for energy instead of food. He’s not joking around. There’s a growing movement in Germany to get farmers like Thale to set some of their land aside to grow grains just for energy. There are now areas throughout the country developing so called “bio-energy regions.” The idea is that a community like Ludwigsfelde would produce its energy locally.

Farmers like Thale would sell their grains and manure to a regional bio-energy power plant. Those materials would get turned into green energy. The 20,000 residents who live here wouldn’t have to rely on fossil fuels and they’d cut down on greenhouse gas emissions. Sounds promising. But Thale says he’d build his own plant if he had three million dollars. Then he could keep all the profits from selling energy.

“He needs an uncle in the U.S. with two million euros.” (laughter)

Other farmers, though, are cashing in, finding money in, well, poop.

(sound of milking machine)

A cow chews her cud as an automatic machine does the milking. This milking parlor is part of an agricultural training center here in west central Germany. This is the greenest farm I’ve been on. There’s a bio-energy power plant. Wind turbines and solar arrays.

Klaus Wagner runs the center. He says this cow’s manure is more valuable than the milk.

“That can’t be.”

Wagner sees a growing rivalry between dairy farmers who want to sell milk and those who want to sell manure for biogas.

“I guess that the milk and energy production on the other side belongs together. And those farmers who built 3-4 years ago biogas plant they earn real money now. The biogas plant substitutes the milking production.”

It really comes down to a question of sustainability. How much land here in Germany and, for that matter, the U.S. should be set aside for making energy? It’s not an easy answer. In the long run, if farmers grow grains for energy instead of food, that will impact the food supply and eventually what we pay at the grocery store.

For The Environment Report, I’m Sadie Babits.

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Biofuels in Europe: Part 1

  • The National Renewable Energy Laboratory's cellulosic ethanol plant. (Photo courtesy of the National Renewable Energy Laboratory)

The US government is spending
millions of dollars to build bio-energy
plants. They’ll turn everything from
wood chips to algae into energy. But
these facilities are years behind what
they are already doing in Europe –
especially in Germany. In the first
part of our three-part series on biofuels
in Europe, Sadie Babits takes us to one
German plant that makes green energy
on a massive scale:

Transcript

The US government is spending
millions of dollars to build bio-energy
plants. They’ll turn everything from
wood chips to algae into energy. But
these facilities are years behind what
they are already doing in Europe –
especially in Germany. In the first
part of our three-part series on biofuels
in Europe, Sadie Babits takes us to one
German plant that makes green energy
on a massive scale:

We’re in Eastern Germany where crews work on what looks like brew vats.

(construction sound)

These monster tanks remind me of vats for brewing beer, except these vats will brew energy from fermenting rye, manure and bacteria.

“Basically, we’re standing here in front of the biogas and bio fertilizer production area. The big fermenter is for the biogas production.”

Oliver Lutke is our tour guide. He’s really a chemical engineer for Verbio. The company is one of Germany’s largest commercial producers of biofuels. Lutke’s been involved in turning this ethanol facility into a plant that makes ethanol and biogas. That’s methane.

“We convert everything into energy by using biological processes. This combination biogas and bioethanol production plant isn’t existing in the world.”

That’s what Verbio claims anyway. The company buys grain from some four-thousand farmers in the region. The grain gets turned into biogas and ethanol. Verbio then turns the minerals from making these biofuels into fertilizer.
That goes back to the farmers for their crops.

“We’re closing the loop to the farmer converting all the carbon to energy and the minerals going back to the farmers as fertilizer which is growing the plants used to extract the energy.”

Lutke says the company has the technology to make this industrial sized plant profitable. That baffles skeptics because it costs a lot to make green energy. You have to buy the grain. And the actual process of turning that grain into fuel can be really inefficient. By the time you’ve made one gallon of biofuel, that gallon of oil is cheaper.

Jan Liebetrau isn’t convinced Verbio has the answer. He researches bioenergy and its potential in Germany.

“If you put lots of energy into the system and you get bioethanol you’re putting more energy in than you get out.”

So making bio ethanol costs energy, which defeats the whole purpose of producing it in the first place. Lutke doesn’t see it that way. He says Verbio has the technology to make biofuels without losing energy. And because the company’s process is more efficient, Lutke says they’ve cut down on greenhouse gas emissions.

“We emit 200,000 tons and the plants we are using will eat off 180,000 tons and that’s a closed cycle.”

It’s not perfect, but there’s less greenhouse gas being released than, say, from an oil refinery. Lutke is convinced bio energy will play a big role in cutting greenhouse gas emissions.

Germany, and Europe for that matter, have become leaders on this. Germany wants to be the first industrialized nation to be powered entirely by renewable energy – a goal Germany could reach by 2050, well ahead of the U.S.

For The Environment Report, I’m Sadie Babits.

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Hawaii Picks Up Pricing Model

  • Hawaii has the highest energy prices in the nation. (Photo courtesy of the National Renewable Energy Laboratory)

Some states have been looking at
new ways to get more renewable energy
on the grid. This year, California,
Vermont, and now Hawaii implemented
a German-style pricing model that pays
people for the green electricity they
generate. Ben Markus reports:

Transcript

Some states have been looking at
new ways to get more renewable energy
on the grid. This year, California,
Vermont, and now Hawaii implemented
a German-style pricing model that pays
people for the green electricity they
generate. Ben Markus reports:

Hawaii imports fossil fuels – namely oil – to meet 90% of its energy needs –
including electricity.

“We’ve been saying for decades that this is foolish, and yet we haven’t changed. Well, now we’re
changing.”

Ted Peck is the state’s Energy Administrator. He says recent approval of
the new pricing model will help spark that change.

It offers a premium price for renewables. That makes it easier for solar and
wind companies to secure financing because they know what they’ll be
paid.

Mark Duda is president of the Hawaii Solar Energy Association. He says
it’s not as wide-open as the German model, but it will make a difference.

“Many of the key design elements went in the direction that the solar industry wanted, and so we’re
definitely pleased with that.”

The big sticking point is setting what will be paid for renewables. And some
are worried about how this will affect ratepayers.

Hawaii already has the highest energy prices in the nation.

For The Environment Report, I’m Ben Markus.

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Germany Sets Energy Example

  • Nearly 20 years ago, Germany passed a law requiring utility companies to pay homeowners more for creating green energy. (Photo courtesy of the National Renewable Energy Laboratory)

Many European countries are taking
climate change seriously. Since
1990, Germany has slashed their carbon
emissions nearly 23%, emerging
as a leader in green energy. Conrad
Wilson explains the country’s transformation
to an alternative energy leader:

Transcript

Many European countries are taking
climate change seriously. Since
1990, Germany has slashed their carbon
emissions nearly 23%, emerging
as a leader in green energy. Conrad
Wilson explains the country’s transformation
to an alternative energy leader:

Nearly 20 years ago, Germany passed a law requiring utility companies to pay
homeowners more for creating green energy. Today that includes wind and
geothermal, but the big winner is solar.

Dr. Silke Karcher is a scientist at the German Ministry of Environment in Berlin.
She says the solar industry is growing, despite the lack of sun.

“One of the instruments, one of the legal instruments that we would really like to
export that has really been successful is the way that we’re supporting renewable
energies and electricity. We have a so-called ‘feed in tariff law,’ which mean that
wherever in Germany you produce renewable energy, you can feed it into the
grid and you get a specific price.”

And that policy has put Germany way ahead to the US. Even with all the rebates
and other recent incentives in the nation’s most pioneering green tech states, it
takes longer for homeowners in the US to pay off an investment in a solar array.

“What Germany does is that they say we’ll pay x amount of euros for every
kilowatt produced, period.”

That’s Jim Rarus, principal of InPower. It’s a Colorado-based solar installation
company. Rarus says rather than comparing renewable fuels to less expensive
fossil fuels, Germany accounts for the costs of pollution.

“They don’t compare certain technologies like solar, which obviously have a
higher cost basis, to other technologies like coal and natural gas, which have a
lower costs basis. So they’re paying a price that reflects the fact that it’s a little
more expensive to build a solar plant and allows the people that put it in to either
get their money back or to make a reasonable return.”

For homeowners investing in solar arrays in the US, the process can be
unpredictable and even frustrating. Johnny Weiss is executive director of Solar
Energy International. It’s a Colorado based nonprofit that trains people for
careers in the solar industry. He says the incentive system in the US is too
complex.

“Over here, it’s different and a more complicated system. We all have states that
are free to do their own incentive programs. We have incentives at the national
level. We have incentives at the local level. But the result is that it’s a bit
overwhelming for not just solar professionals, but the public as well. And it’s not a
consistent thing people can count on.”

Some communities in the US are trying out the European model. But the limited
government support in the US has driven competition as solar companies try to
make the energy source affordable. That’s something some fear isn’t happening
anymore in Germany.

Dr. Kurt Christian Scheel heads up the Department of Climate and Sustainable
Development for the German private industry association. Scheel worries that
government incentives have stifled innovation.

“I mean, let’s put it this way. Whoever produces solar panels in Germany has a
safe earning and no motivation in anyway to, and not enough competition to,
innovate and to make things better.”

But even if in the long-term some feel a feed-in tariff slows innovation and
growth, it’s proven that in a short period of time it can drive energy consumers to
become producers.

For The Environment Report, I’m Conrad Wilson.

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Lack of Investment in Renewables to Hurt Businesses?

  • Mike LeBeau installs solar and wind energy systems. He has put in more generators this year than in the last 10 years combined, thanks to rebate programs offered by the state and local governments. (Photo by Stephanie Hemphill)

Representatives of nearly 200 countries recently met in
Argentina to work out the next steps in dealing with climate change.
Seven years ago, many nations agreed to reduce fossil fuel emissions
and greenhouse gases. The U.S. didn’t agree to reduce its emissions.
Now, a report from the National Environmental Trust says that decision
is hurting American businesses. The Great Lakes Radio Consortium’s
Stephanie Hemphill reports:

Transcript

Representatives of nearly 200 countries recently met in Argentina to
work out the next steps in dealing with climate change. Seven years
ago, many nations agreed to reduce fossil fuel emissions and
greenhouse gases. The U.S. didn’t agree to reduce its emissions.
Now a report from the National Environmental Trust says that
decision is hurting American businesses. The Great Lakes Radio
Consortium’s Stephanie Hemphill reports:


Mike LeBeau installs wind generators and photovoltaic solar
collectors. His business, Conservation Technologies, is in Duluth,
Minnesota. In the U.S., there are not a lot of contractors doing this
kind of work.


“This is a two and a half kilowatt photovoltaic system.”


Two panels about the size of a dining room table stand on the top
floor of a downtown garage. The only other equipment is an inverter
– a metal box the size of a shoebox – that transforms the direct
current from the solar panels to the alternating current we use in our
homes.


“The electricity is produced here by the sun, fed into the wiring in the
building here, and any excess is distributed out onto the utility grid.”


The solar panels were made in Japan. And the inverter is from
Germany.


LeBeau has been installing systems like this for ten years. Demand
was slow until a year ago, when Minnesota started a rebate program.
LeBeau has put in more generators this year than in the last ten
years combined.


With another rebate offered by the local utility, LeBeau says the cost
of installing a typical system can be cut nearly in half.


And he says the increased activity has persuaded some of the
naysayers to help rather than hinder renewable energy projects.


“Now the electrical inspectors don’t have any choice – it’s being
supported by the utilities, and by the state of Minnesota, so it’s really
changed the atmosphere and the climate that we work in.”


But LeBeau says the state rebate program is a drop in the bucket
compared to what’s being done in other countries.


Christopher Reed agrees. He’s an engineer who advises individuals
and businesses on renewable energy projects. He says U.S. policy
has been piecemeal and erratic. For instance, there’s a federal tax
credit for renewable energy production. But it’s only in place for a
year or two at a time.


“When the incentive is out there, everybody ramps up as fast as they
can, and we slam projects in to meet the deadline before the credit
expires, and then everybody sits until the credit gets reintroduced
again. This has happened three times now.”


Reed says that discourages long-term investment.


Reed’s business is one of several American firms studied for the
report from the National Environmental Trust. The report says Japan
and most countries in Europe are providing major and consistent
incentives to encourage production of renewable energy. The report
says this approach is saving money, creating jobs, and putting
businesses in a position to export their new technologies and
expertise.


Reed says he’s frustrated to see European and Japanese companies
thrive, using American inventions such as photovoltaic, or PV,
technology, while American manufacturers fail.


“It’s almost embarrassing. The PV technology, that came out of Bell
Labs in the U.S. We should be the world leaders.”


But some observers say the worry is overblown. Darren McKinney is
a spokesman for the National Association of Manufacturers. He says
the U.S. has nothing to fear from German or Japanese businesses.
He says fossil fuels are doing a good job of stoking the American
economy.


“The fact of the matter is that wind and solar and biomass and
geothermal simply aren’t ready for prime time. If someone wants to
make an argument ‘well, they could be ready for prime time if they
received x-amount of tax cuts,’ I won’t necessarily argue against that
because I don’t know enough about the technologies. What I do
know is it would be cutting off our nose to spite our energy face if we
turn our backs on fossil fuels.”


Right now, oil and natural gas get the lion’s share of federal subsidies
in the U.S. Subsidies for renewable energy sources are very small in
comparison. As other countries shift to new technologies, American
companies could be left behind.


For the Great Lakes Radio Consortium, I’m Stephanie Hemphill.

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