Nebraska Senator Ben Nelson has introduced what he calls “groundbreaking legislation that offers tax breaks and guaranteed loans for small business for the development of bio-gas derived from animal waste.”
 

Biogas, a natural gas substitute that is created by the anaerobic digestion (AD) of animal wastes, is composed of at least 60%  methane, the principal ingredient in natural gas.  Biogas can be used as is on the farm, co-located with an ethanol plant, and cleaned up to be used as a renewable substitute for natural gas, propane, or other fossil fuels.  Nelson acknowledges that the technology to break down animal wastes to create bio-gas already exists and that it needs encouragement from the federal government to become a commercially-viable alternative to natural gas.
 

The bill, the Biogas Production Incentives Act of 2007, would encourage greater production of biogas for energy purposes by doing a number of things and would provide bio-gas producers with a tax credit of $4.27 for every mmBtu of biogas produced.
 

Biogas production also offers environmental benefits such as a reduction in the greenhouse gas emissions of both carbon dioxide and methane, as well as improved water quality through better manure management.
 

Sen. Nelson says the bill “would provide loans, loan guarantees and/or grants for the multi-farm collection and transportation of qualified energy feedstock from smaller livestock operations to a qualified facility, or for the purchase or construction of equipment or facilities for collection and transportation,” as well as creating a counter-cyclical safety net for biogas producers by providing payment from Commodity Credit Corporation funds to qualified biogas producers only when the annual average daily prices of natural gas falls below a certain level.
 

“We’ve made great strides in developing an ethanol industry in Nebraska and we should do more to diversify and expand our production of bio-fuels and renewable energy. My legislation will put into place tax incentives and financial support for large scale and small scale producers to get involved in biogas production and help America win the battle for energy independence.”

The Doe Fund, a nonprofit group that provides jobs to the homeless and newly released convicts, quietly started a program called Resource Recovery to collect used cooking oil for conversion into biodiesel.

At no costs to local restaurants, Doe Fund workers in their trademark blue uniforms will pick up the used cooking oil, which is then turned into premium-grade biodiesel.

Biodiesel, which is 100% organic, is often combined with petroleum diesel to create a cleaner, greener fuel and is characterized by emissions that are 70% lower in carbon dioxide and particulate matter than traditional fuel. The emissions also commonly smell like french fries, which is nice.

“Resource Recovery is one of several micro-business ventures developed by the Doe Fund,” the Doe Fund said in a statement. “We’ll be happy to provide more details on this exciting project when it’s ready to launch.”  The program officially kicked off in December, so this quote is a bit comfusing.

 
According to the Doe Fund, Resource Recovery is licensed, insured and follows all environmental regulations.

Moderate temperatures this week boosted an already favorable supply situation, leading to widespread declines in natural gas spot prices in the Lower 48 States.

For the week (December 13-20), the price for next-day delivery at the Henry Hub decreased 78 cents per MMBtu, or 10.8% to $6.43 per MMBtu. The NYMEX futures contract for January delivery at the Henry Hub settled yesterday (December 20) at $6.769 per MMBtu (1,000 British thermal units), which was 90 cents less than last Wednesday’s price.

Natural gas in storage decreased to 3,167 Bcf as of December 15, leaving inventories at 9.5% above the 5-year average. The spot price for West Texas Intermediate (WTI) crude oil moved up $1.74 per barrel or about 2.8% since last Wednesday to $63.08 per barrel or $10.88 per MMBtu.

The exceptions to the general price trend could be found only at Rockies trading locations, as a winter storm enveloped the region and colder-than-normal temperatures have increased heating demand. As a result of the cold weather in the Rockies, the price at the Opal, Wyoming trading increased 18 cents per MMBtu, or 3.8% to $4.87.

Since Wednesday, December 13, price declines were steepest at locations in the Gulf Coast region and in the Northeast, where prices fell up to 92 cents per MMBtu. Before gaining 17 cents per MMBtu in trading on December 20, the Henry Hub average price dipped as low as $6.26 on Tuesday. This was the lowest daily average price since mid-October, a signal that weather during this winter peak demand season has not influenced buyers and sellers strongly to date.

In the Northeast, where temperatures were in the upper 50s, the price for natural gas off Transcontinental Pipeline in New York City on the week decreased 77 cents per MMBtu to $7.07. Declines at most other market locations in the California, Texas, Midwest, and Midcontinent regions in the same period were somewhat less pronounced. At the PG&E citygate in California, the spot price declined 55 cents per MMBtu, or 7.3%. With these declines, spot prices are now about half last year’s hurricane-induced historically high prices.