THU AM News: Virent leader sees potential for collaboration with dairy, paper industries; USDA announces $4.5M for clean energy, biofuels projects in WI

April 25, 2024

— The head of Madison-based Virent sees opportunities for partnerships within the state’s dairy and paper industries as the renewable fuels business continues to develop its technology.

Virent President and General Counsel Dave Kettner discussed the company’s trajectory during a recent Wisconsin Technology Council luncheon in Madison. Its demonstration plant in Madison can transform plant-based feedstocks into various fuels and chemicals through a process called bioforming.

The fuels Virent produces are largely identical to petroleum-based fuels, and can therefore be used in existing engines without the need for modification, according to Kettner’s presentation.

“The industry itself can move to 100% sustainable aviation fuel without interchanges in today’s infrastructure,” he said Tuesday.

The company’s production process relies on plant-based sugars in the form of carbohydrates, he explained. That can come from crops like corn or more wood-like biomass.

“So everything that’s coming out of the ground, for the most part in the state, we can turn into a biofuel or a chemical product, and we can do so while also complementing the production of food,” he said.

Tech Council President Tom Still said this process could use materials that would otherwise be wasted at farms in the state. Kettner agreed, noting Wisconsin’s dairy industry “is an untapped area” for capturing renewable natural gas from manure waste as well. He also pointed to waste from the state’s paper industry as another underused resource.

“The paper industry is very good at taking wood material and breaking it down into its individual products,” he said. “We can help with that from an industry standpoint. What they don’t use, we can use.”

The company late last year announced two successful demonstration flights using its sustainable aviation fuel, including the first transatlantic flight using this fuel by a commercial airline, Virgin Atlantic. The eight-hour flight in November went from London to New York, and came about a week after Virent’s fuel was used in an Emirates Airline demonstration flight in Dubai.

Kettner on Tuesday shared data from the second flight, showing particulate matter emissions were reduced by up to 80% both on the ground and in flight due to using the renewable fuel.

“They burned less fuel on the way over … so greater efficiencies, better performance on the engine as a whole,” he said. “So what we’ve been able to do, working with others in the industry, is to tailor a perfect jet fuel, or near-perfect jet fuel, that meets a lot of the environmental demands while also servicing the industry.”

Still, the company’s path forward isn’t without its challenges, Kettner said. For one, its main competition is the global petroleum industry.

“They’ve been around for 140, 150 years. They figured out how to squeeze every single ounce of value out of a barrel of oil. And they’ve done so in a way that has brought the cost down to something that we’re very comfortable with today,” he said.

By contrast, renewable fuels are just getting started, meaning they’re currently more expensive and less efficient to produce than the mainstream alternative. He predicts the cost for producing Virent’s fuel will come down over time to be competitive with oil, but adds “that’s decades away.”

“That’s where the biggest challenge is for the industry today, is for all of us to get together and figure out how do we move this promising opportunity,” he said. “When you look at emissions from jet fuel alone make up 5% of the global basis. Technology exists for purposes of wiping that out, and moving everything to sustainable aviation fuel.”

See more on the company’s technology.

— Federal officials are providing $4.5 million in grants and loans for clean energy projects and biofuels infrastructure in Wisconsin.

USDA Rural Development Wisconsin State Director Julie Lassa yesterday announced the funding for more than a dozen projects led by farmers and small businesses in the state.

“Today’s announcement showcases the variety of rural people and businesses using programs like the Rural Energy for America Program to save money on their energy costs that can then be reinvested in their operations,” she said. “This not only strengthens their business but helps sustain and build the local economy.”

Of the total funding, $2.8 million is coming from the Rural Energy for America program for 17 recipients. These dollars are helping recipients install solar electric arrays, more energy-efficient steam boilers and refrigeration equipment, electricity-powered equipment to replace diesel-powered machinery and more.

The other $1.7 million from the federal Higher Blends Infrastructure Incentive Program will help two businesses expand the sale or use of renewable fuels, according to the USDA’s release.

Jandu Oil Inc. in Algoma will use about $1.4 million in funding to install more than three dozen fuel dispensers, ethanol and biodiesel storage tanks at fueling stations in the state. The project is expected to boost biofuels sales by about 2.2 million gallons per year.

And Barbara Kraft Smoke Shop Inc. will use about $360,000 to install dispensers and fuel storage tanks, projected to boost ethanol sales by about 93,000 gallons per year.

See the release.

— The state Public Service Commission has awarded $7.8 million for dozens of projects related to renewable energy and new technologies, Gov. Tony Evers announced.

Awards come from the Energy Innovation Grant Program, which provides funding for deploying renewable energy and storage, energy efficiency and demand response projects and comprehensive energy planning.

The 28 grants range from around $22,000 to $1 million, and the release notes recipients are providing or securing more than $8 million in matching funds. The largest awards are going to Kaukauna, which is adding a geothermal system and solar array, and Revitalize Milwaukee Inc., which will invest in energy efficiency upgrades for up to 100 homes.

Since the EIGP program started in 2017, the PSC has awarded $40 million to 169 projects in the state.

See the list of funded projects.

See the release.

— UW-Madison’s Division of Extension has been selected for a $1 million grant from the U.S. Department of Energy to support siting and local engagement for large renewable energy developments.

The university yesterday announced the award for the Renewable Energy Siting and Engagement for Tomorrow project, which will develop and update renewable energy guidance and technical resources, expand related education efforts, create developer agreements and more.

The announcement notes state law requires developers of renewable energy projects that are 50 megawatts or larger to compensate local governments each year per megawatt of installed energy, “generating hundreds of thousands of dollars for communities.” But the university says most local governments aren’t saying how they will use those dollars, so residents may be unaware of this requirement.

Sherrie Gruder, distinguished sustainable design specialist and energy strategist with UW-Madison Extension and a leader on the project, says the federal funds “will help us move Wisconsin to successful renewable energy development where all stakeholders benefit”

Wisconsin is one of six states that are collectively receiving $10 million for projects related to large-scale renewable energy and battery storage, with funding coming from the Renewable Energy Siting through Technical Engagement and Planning, or R-STEP, program.

See the release.

Top headlines from the Health Care Report…

— The state chapter of the Alzheimer’s Association has rolled out its 2024-2028 State Dementia Plan, which includes goals related to public education, the caregiver workforce, health research and more.

And Marquette University has received a $1.5 million donation that will be used to fund projects within its College of Health Sciences aimed at addressing substance abuse.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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