President Obama and Prime Minister Harper release joint statement on clean energy

WWW.BLUEFUELENERGY.COM: Canadian Prime Minister Stephen Harper recently returned from an official visit to Washington, DC, to meet with US President Barack Obama. As is customary, the two leaders released a joint statement at the end of Mr. Harper's trip, and included in their statement was a mention of the two countries' progress on clean energy since President Obama's visit to Ottawa in February 2009.

Specifically, the statement referenced a report on the US - Canada Clean Energy Dialogue written under the names of US Energy Secretary Steven Chu and the Canadian Minister of the Environment Jim Prentice, as well as a related report the US - Canada Clean Energy Dialogue Action Plan.

Of the two reports, the Action Plan is longer, more detailed, and more relevant. It states that the two governments have identified "key opportunities for joint collaboration in each of the following priority areas: 1) Developing and deploying clean energy technologies; 2) Building a more efficient electrical grid based on clean and renewable generation; and 3) Expanding clean energy research and development.

Of significant interest to the DME/Blue Fuel world is a section of the Action Plan that deals with carbon capture and storage (CCS). As the report states, "CCS holds tremendous promise for North American climate and energy security, and is a critical technology for significantly reducing carbon dioxide (CO2) emissions from large industrial point sources that use fossil fuels." What is described above is a perfect match for Blue Fuel Energy's Corporation's plans to use renewable energy, such as wind and hydro, as well as water and waste carbon dioxide (in a process called active sequestration) to produce carbon-neutral DME/Blue Fuel in British Columbia, Canada.

Until now, natural gas processors and other industrial plant operators have considered CO2 a waste by-product and simply released it into the atmosphere, contributing to global warming. The alternatives are to sequester it underground or, as Blue Fuel Energy will do, to recycle it for energy use. Of all the CCS choices, we believe our active sequestration process makes the most sense both environmentally, politicallty, and economically, particularly since it utilizes renewable electricity, an important plank in the US-Canada joint plan platform.

The US-Canada Action Plan makes the following five recommendations in order "to realize a reliable, adequate, and secure North American electrical system - which will support a cleaner energy portfolio while providing cost effective energy solutions to consumers."

1. Increasing Opportunities for Trade in Clean Electricity.
2. Advancing Smart Grid and Clean Power Technologies
3. Realizing the Potential of Power Storage
4. Building the Power Work Force of Tomorrow
5. Keeping the Dialogue Going - the Canada-US Electricty/Smart Grid Forum.

According to the Joint Action Plan, implementation of these recommendations is scheduled to begin in the fall of 2009.

Although none of the objectives or recommendations in the Joint Plan mention DME/Blue Fuel specifically, in principle they speak directly to DME/Blue Fuel's strengths as an ultra-clean-burning, environmentally benign alternative fuel derived from waste CO2 and renewable electricity - and that spells good news indeed not only for the DME/Blue Fuel industry, but for consumers and citizens of both countries as well.

Alternative Fuel Technology Inc. making DME headlines

BLUEFUELENERGY.COM: Alternative Fuel Technology, Inc. (AFTC), a research, development, and manufacturing organization for advanced fuel systems using DME and based in Detroit, Michigan, has been making DME headlines recently.

As reported in Marketwire recently, AFTC has completed submission of its advanced propulsion solution for the US Navy. According to the article, "The US NAVY is in need of an alternative to current diesel fuel propulsion systems; one that allows for increased payloads without sacrificing speed and acceleration. More specifically, an innovative solution that decreases 'weight to power ratios' significantly, thereby enabling increases in mission system payload weight and personnel transport capability."

To answer this need, "(AFTC) submitted its proposal on June 15, ahead of schedule, and expects an answer in the next 60 to 90 days. The project includes three phases. Phase one could generate a total $100,000; Phase two could exceed $1,000,000, and Phase three which includes the completion of a full prototype engine installed in a marine craft, would likely approach $20,000,000. The US NAVY defines only the scope of the work rather than the contract dollar amount."

CEO Jim McCandless reported that, "All of us here in management at AFTC feel really solid about the proposal we submitted. Our proposal is not only extremely competitive, but we believe our technological ingenuity and ability to provide the next generation of fuel solutions can satisfy the Navy objectives of hauling greater weight without putting our troops' lives at risk. Gaining this opportunity would be a win for the company, of course, but a project we would be elated to be a part of."

More recently, on July 8, WebWire reported that AFTC had "received a second order from the Korea Institute of Energy (KIER) for four more DME feed pumps. This order brings the total purchased by the KIER to 10.


"KIER is adopting AFTC DME technology as a gradual replacement for traditional diesel fuel to improve air quality and strengthen Korea’s energy security." Yahoo Science also picked up the story and added that, "KIER ... views DME as an economic means by which the country may improve air quality and gain increased energy security in the future. In addition, government officials realize the potentially massive economic benefits associated with widespread adoption of DME as a fuel source." The Korea Institute of Energy is a Government entity which focuses on advanced energy Research and Developments projects with the goal of mass implementation and Commercialization of efficient, clean energy alternatives.

Finally, on June 23 in a story on TradingMarkets.com and other sites, AFTC announced that, "after the signing of a contract in 2008 with Ford Motor Company to supply them with a DME fuel system for a single cylinder alternative fuels/emissions research project, the Company is on schedule to make delivery of the DME Fuel System in August of this year. AFTC is using a Ford Land Rover 4-cylinder diesel engine that will fire only on one cylinder. The Company is testing this system now and all tests currently are on track for shipping. If successful, Ford has stated that they will do a full engine and car demonstration."

Obama administration says research and development key to innovation

BLUEFUELENERGY.COM: The Obama administration in the United States has made innovation in the field of alternative energy a cornerstone of their platform to advance the American economy. To support this strategy, the Department of Energy (DOE) is funding many research and development projects.

One example is a Funding Opportunity Announcement (DE-FOA-000103) designed to encourage research and development in the field of hydrogen extraction from coal. While the $five million grant is not huge, it demonstrates a belief that alternative fuel technologies could lead the way out of the current global recession and provide many of the answers to the current global climate crisis.

The DOE states: “This program is designed to support the Department of Energy (DOE) Strategic Plan by providing core competencies related to Hydrogen Separations Technologies. The specific objective of this activity is to competitively solicit projects under the Hydrogen and Clean Fuels program area to develop novel Hydrogen Production technologies. The goal of the Hydrogen and Clean Fuels program is to develop advanced and novel energy technologies which will facilitate the use of our nation’s abundant coal resources to produce, deliver, store, and utilize affordable hydrogen in an environmentally clean manner. The program helps to reduce environmental concerns associated with energy use in automotive and stationary power applications through clean production of hydrogen from coal in tandem with carbon sequestration, and will ensure availability of hydrogen in sufficient volumes for fuel cell-powered vehicles expected to enter the transportation market sector in the future.”

Although the emphasis of the research is on developing sufficient hydrogen resources for a future based on hydrogen-fueled vehicles, the potential to use new technologies developed under this program to produce other alternative fuels, such as Blue Fuel/DME, is evident.

The type of forward-thinking commitment to funding research and development exemplified here by the DOE should serve as a model for all governments looking for answers to the challenges the world is currently facing.