Starbucks to fuel cars?

Coffee is well known for being able to power the economic engine that is the global workforce.  It might fill the tank of an individual but certainly won’t fill your car.  Beyond compost are there any alternative uses for coffee grounds?

New research at the University of Nevada shows used coffee grounds can be repurposed into biodiesel to power vehicles, trains, and even airplanes.  The waste from Starbucks alone could turn into 3M gallons of fuel and $8M in profits.

One of the main limits to the acceptance of biodiesel as an alternative fuel is its price premium above regular diesel. To bring the price of biodiesel down, the industry uses as much waste material from other industries as possible to make it — such as used fryer oil and animal fats from poultry processing.

Coffee grounds are actually about 15% oil.  The research team said that it concludes that the coffee-ground oil feedstock would cost between $0.45 to $1.84 less than feedstocks such as corn or soy, is more stable than comparable feedstock oils, and the grounds can be further processed into fuel for pellet stoves.

Given that Starbucks (NasdaqGS: SBUX) generates 210 million pounds of spent coffee grounds per year in the US, the researchers calculate that it could amount to almost 3 million gallons of biodiesel and 89,000 tons of fuel pellets.   Should gas prices reverse direction and move back over $4 per gallon then the researchers estimate as much as $8M in profits from Starbuck’s waste alone.

One of the main drivers for adoption of biodiesel is energy security. This means that a nation’s dependence on oil is reduced, and substituted with use of locally available sources, such as coal, gas, or renewable sources.

Biodiesel production capacity is growing rapidly, with an average annual growth rate from 2002-2006 of over 40%. For the year 2006, the latest for which actual production figures could be obtained, total world biodiesel production was about 5-6 million tons (over 80% of this production comes from Europe).

Sources: Gas 2.0, Wikipedia, Ecogeeek, Biofuels Digest

Gap goes solar

Gap unveiled a one megawatt (MW) solar power system at Gap Inc.’s West Coast distribution center campus. The installation, one of the largest in Northern California, features a ground-mounted solar tracking system on a five-acre site, and is expected to offset 2.5 million pounds of greenhouse gas emissions annually, the equivalent of taking 2,466 vehicles off the road over the life of the project.

“We are very excited this solar power system is now online,” said Kindley Walsh Lawlor, senior director of strategic planning and environmental affairs for Gap Inc. at today’s dedication ceremony. “We made the commitment to host this solar system nearly 15 months ago and are proud to support the clean energy it generates. Over the past decade, Gap Inc. has sought to find better ways to do business and this solar installation is one such shining example.”

MMA Renewable Ventures, which owns and operates the system, joined with Gap Inc. to develop an innovative partnership, leveraging tax credits and incentives, to finance the solar power system. This enables Gap Inc. to buy the power generated from the system through a long-term contract known as a power purchase agreement (PPA) – rather than through a major capital investment. MMA Renewable Ventures owns the renewable energy credits and environmental attributes associated with the system.

“This project demonstrates that solar systems deliver dependable power and long-term cost savings,” said Matt Cheney, CEO of MMA Renewable Ventures. “Gap Inc. joins with several of the country’s top retailers in deploying solar; we commend their visionary commitment to renewable energy systems. By securing power through a power purchase agreement, Gap Inc. will benefit from cost savings from the system’s very first day of operation – and for years to come.”

Designed and installed by SunPower, SunPower(R) Tracker system follows the sun’s movement during the day, increasing sunlight capture by up to 25 percent over conventional fixed-tilt systems, while significantly reducing land use requirements.

“We congratulate Gap Inc. on their decision to convert five acres of unused land on the Fresno campus for the production of clean, renewable solar power,” said Howard Wenger, SunPower’s president, global business units. “High-efficiency SunPower Trackers will maximize the energy production on the site, while an affordable PPA will provide the facility with a hedge against rising utility rates.”