Saturday, December 31, 2011

50-foot yachts destroyed in 2-alarm fire at Edmonds Marina

From KOMO news:
31 December 2011

EDMONDS, Wash. - Two 50-foot motor yachts were destroyed in a spectacular two-alarm fire at the Edmonds Marina early Saturday morning.

Fire crews responded to the scene just before 4 a.m. and found towering flames spewing from the two boats, lighting up the early morning sky.

The fire was called in by a janitor working in a nearby business.

"Two boats moored next to each other were engulfed in flames when firefighters arrived and flames were shooting 50 feet in the air," said Leslie Hynes of Snohomish County Fire District 1.

No one was aboard the burning boats, but a man and a woman staying overnight in another boat moored at the same dock had to be rescued by firefighters, Hynes said.

She said the burning boats were moored in the first two slips of the dock, and the flames cut off the couple's access to the shore.

"They were stuck at the far end of the dock in the smoke until they were rescued by the fire department boat," Hynes said.

The man and woman were taken to Swedish-Edmonds Hospital, where they were both treated for minor smoke inhalation and released a few hours later.

Firefighters from Lynnwood and Shoreline responded to assist Fire District 1. At the peak of the fire, about 40 firefighters were on the scene.

"The docks were very icy and slippery, which was a challenge for firefighters as they worked to put out the fire," Hynes said. "They used an overhead water stream from a ladder truck and firefighting foam to smother the flames."

It took firefighters about 30 minutes to get the fire under control, but crews continued to battle hot spots for about an hour as the boats smoldered and fuel ignited. One of the boats sank as the firefighting effort continued.

Damage to both yachts and the dock is expected to total more than $600,000.

Fire investigators are working to determine how the fire started. "The boat where the fire started sank and will have to be raised. Investigators do not expect to have a cause today," Hynes said.

As firefighters were putting out hot spots, crews from the Port of Edmonds set up containment booms. The state Department of Ecology is on the scene working to control and prevent environmental damage.

Friday, December 30, 2011

Nome is Waiting On Jones Act Waiver

I am finding myself getting "sucked in" to another political article. I find it unavoidable this time. I apologize to all of the people on the Left and Right that I may offend.

Several weeks ago, the Congress and the Senate unanimously passed the America's Cup Act of 2011 in order to allow the America's Cup World Series (ACWS) Event to take place in San Diego. (See our blog entry from 06 November 2011) from The noteworthy aspect of this was that Congress provided, essentially, a Jones Act Waiver to host the ACWS event in under 10 days. Nome has been trying to solve their Winter/Spring fuel problem for over a month now.

I find it interesting that our elected congressional officials were the "only ones" who could preserve the America's Cup event enabling jobs, an economic boost for San Diego and San Francisco. They did this in 10 days, yet a small town in Alaska can wait for a month to find out if they will freeze in February. I see that congress is very concerned with the welfare of all Americans. 10 days to pass a waiver that will create nearly 8000 jobs is impressive until you contrast it with the heating fuel and gasoline that will keep 5000 people warm during the coldest part of the year.

The point of this being, the America's Cup Act was completely and entirely one politician's PR stunt to put a feather in her cap for her (and her party's) re-election hopes. It was unnecessary, because the America's Cup Authority could have gotten the Jones Act Exemption the same way Nome, Alaska is getting it. Now, for every expedited exemption to the Jones Act gets to be run through Congress, which will continue to punch holes in a law that has been around since 1925.

For now, Nome, Alaska's well being (financial and otherwise), according to congress' inaction has been told its citizens are not as important as San Diego's.


The following is an Broadcast from Alaska Public Radio:

By Ben Matheson, KNOM - Nome | December 29, 2011 - 5:51 pm

Vitus Marine, the company contracted to help get fuel delivered to Nome, is hoping to hear back Friday on the status of the Jones Act waiver for the Russian tanker Renda. The waiver is necessary for the tanker to be able to load gasoline in Dutch Harbor. Mark Smith, CEO of Vitus Marine says the Defense Department and Maritime Administration have weighed in to Customs and Border Protection, who ultimately makes the decision. The waiver claims that Nome’s fuel is of indirect significance to national security. Alaska’s congressional delegation has sent a letter urging the government to approve the waiver.
Meanwhile, the tanker is headed towards port. Smith says the Renda was 340 miles southwest of Attu this morning. It’s expected to be in Dutch Harbor by the afternoon of Jan. 2.
Several question remain on the final routing and offloading of the fuel, but the regulatory pieces are starting to come together. On Tuesday, Vitus submitted its delivery plans to be approved by the state, filing an amendment to its oil discharge prevention and contingency plan to incorporate the cold weather considerations. The vessel support plan is unique as ice-capable tugs and spare barges will not be on hand – instead the Healy will assist, and land based tanks will provide space in the case of an emergency. The Renda itself is ice capable, but the state Department of Environmental Conservation is requiring the Healy’s participation.
The plan calls for the staging of skimmers, thousands of feet of boom, pumps, sorbent pads, tank trucks, and a bobcat. Vitus has contracted with the Chadux corporation to have spill response equipment on hand. There will be a spare 610,000 gallon tank available for emergency use even after the fuel is transferred.
John Kotula is the Manager of the Marine Vessels section for the Department of Environmental Conservation. He says the agency now is making sure that the plans and resources will be ready.
Additional logistics plans are in place for lighting and monitoring the transfer hose if it goes across the ice. The Renda will have extra environmental protection on board, plus three extra officers for a crew of 21. The document says Crowley has agreed to lend equipment in Nome should it be needed. And in addition to the Healy, the plan calls for the Coast Guard to supply a helicopter on shore, with C-130 support overhead, plus specialty personnel. Kotula says the state is in communication with private industry and government groups to make sure the pieces come together in the plan.
Vitus CEO Mark Smith says he’s confident in the plan. He says it’s based in part on what happens on the North Slope on a regular basis. The oil spill response plan is out for public review until Jan. 3.

Tuesday, December 27, 2011

Icebreaker Aids Stricken Fishing Vessel

WELLINGTON, New Zealand — A South Korean polar research ship on Monday reached a leaking Russian fishing vessel that has been stuck in the frigid waters off Antarctica for the past 10 days, New Zealand officials said.
The Sparta, with 32 crew on board, hit underwater ice on Dec. 16 that tore a 30-centimeter hole in its hull and caused it to list at 13 degrees. Several rescue ships had been hampered by heavy ice in the Ross Sea off the northern Antarctica coast before the icebreaker Araon finally pushed through and reached the Sparta on Monday, New Zealand Rescue Coordination Center spokeswoman Rosalie Neilson said.
The arrival was a relief to the crew, which had been desperately pumping out near-frozen sea water while awaiting rescue. At one point, more than half of those on board were forced onto life rafts.
The crew is made up of 15 Russians, 16 Indonesians and one Ukrainian.
A New Zealand air force cargo plane had previously made two parachute drops of pumps and hull patching gear that had helped keep the single-hulled Sparta from sinking.
The survival drama on the edge of the Antarctic ice shelf is taking place about 3,700 kilometers southeast of New Zealand.

Wednesday, December 21, 2011

Bonga Platform Closes After Nigeria's Worst Spill in a Decade

21 December 2011

By Eduard Gismatullin and Elisha Bala-Gbogbo

Dec. 21 (Bloomberg) -- Royal Dutch Shell Plc, Europe’s largest oil company, shut its 200,000 barrel-a-day Bonga field off Nigeria after a leak during a tanker loading caused what may be the country’s worst offshore spill in more than a decade.
An export line from the field’s floating production, storage and offloading vessel was probably the cause of the leak, estimated at below 40,000 barrels of crude, Shell said in a statement today. The oil flow has been halted, it said.
“We’re aware of the incident and we’re working hard with Shell to contain the spill,” Idris Musa at the National Oil Spill Detection and Response Agency said today from the capital.
The leak is expected to be the worst since a January 1998 Exxon Mobil Corp. spill dumped an estimated 40,000 barrels into the sea from its Idoho platform, with slicks reported as far west as Lagos. Shell, the largest foreign oil producer in Nigeria, has been criticized by some local people and foreign groups for spills of crude from its onshore fields.
The Anglo-Dutch company, operating in Nigeria since 1937, says most spills occur because of pipeline sabotage and oil theft and it has set up a website to disclose data on leaks.
“Spill response procedures have been initiated and emergency control and spill risk procedures are up and running,” Tony Okonedo, a Shell spokesman, said by phone from Lagos, the commercial capital. Shell is sorry for the leak, Mutiu Sunmonu, its Nigerian chairman, said in the statement.
Shares Advance
Bonga, Nigeria’s first deepwater discovery, produces almost 10 percent of the country’s crude 120 kilometers (75 miles) off the coast. Shell planned to export five cargoes of 1 million barrels each of Bonga crude every month from December to February, loading programs obtained by Bloomberg News show.
Shell pared an advance of as much as 1.4 percent in London trading to close the day up 0.4 percent at 2,288 pence. Shell’s American depositary receipts climbed 0.4 percent to $71.79 at the close in in New York.
“They averted a potentially much more serious situation, they figured it out very quickly,” Fadel Gheit, an analyst at Oppenheimer & Co. in New York, said in a telephone interview today. “I think the market is recognizing the responsiveness of the company.”
Gheit, who has an “outperform” rating on Shell’s American depositary receipts and owns some, said he’s glad “sanity prevailed” on the stock market. While the amount of oil spilled is substantial, he said, this isn’t a “runaway field” like what BP Plc dealt with in the Gulf of Mexico last year.
Yesterday Shell said a Gulf of Mexico drilling operation will stop for weeks after spilling 319 barrels of drilling fluid.
--With assistance from Sherry Su in London and Edward Klump in Houston. Editors: Tony Barrett, Charles Siler
To contact the reporters on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net; Elisha Bala-Gbogbo in Abuja at ebalagbogbo@bloomberg.net
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Tuesday, December 20, 2011

Hawaii Superferries to become US Navy Property

From Marine Log
19 December 2011

As widely predicted, the two AustalUSA built former Hawaii Superferries, Huakai, and Alaka, are at last going to wind up under Navy control. Shipbuilding guru Tim Colton has found the following tucked away in the Defense Authorization Act of 2012:

SEC. 1026. TRANSFER OF CERTAIN HIGH-SPEED FERRIES TO THE NAVY.

(a) TRANSFER FROM MARAD AUTHORIZED.—The Secretary of the Navy may, subject to appropriations, from funds available for the Department of Defense for fiscal year 2012, provide to the Maritime Administration of the Department of Transportation an amount not to exceed $35,000,000 for the transfer by the Maritime Administration to the Department of the Navy of jurisdiction and control over the vessels as follows:

(1) M/V HUAKAI.

(2) M/V ALAKAI.

(b) USE AS DEPARTMENT OF DEFENSE SEALIFT VESSELS.—Each vessel transferred to the Department of the Navy under subsection (a) shall be administered as a Department of Defense sealift vessel (as such term is defined in section 2218(k)(2) of title 10, United States Code).

62 Million in Grants go to Port Improvement

From IFW-Logistics
20 December 2011


The US Department of Transportation (DoT) has announced $62 million in port-related grants as part of the third round of funding in its TIGER (Transportation Investment Generating Economic Recovery) programme.

Four of the 46 awards go directly to US port-related infrastructure, comprising around 12% of the total $511 million available for capital grants.

South Jersey Port received $18.5 million to repair the DelAir Bridge (pictured), which links the rail networks of Pennsylvania and New Jersey and enhances freight movement throughout the north-east.

Port of Long Beach got $17 million to improve tracks to two rail yards and relieve a rail chokepoint, improving efficiency, reducing the environmental impact of freight movements and enabling the port to move 35% of goods by on-dock rail by 2035.

Port of Jacksonville received $10 million for the Dames Point Intermodal Container Facility that will be used by CSX railroad.

In addition, Port of New Orleans received US$16 million, as previously reported in IFW.

A number of TIGER-funded projects also address key congestion points along main rail lines, inland port facilities and highway trade corridors, making a positive impact on freight mobility and the movement of goods to and from US seaports.

TIGER grants are awarded to transport projects that contribute to the long-term economic competitiveness of the US, improve existing transport facilities and systems, increase energy efficiency and reduce greenhouse gas emissions and improve safety.

In the first round of TIGER grant awards, port-related infrastructure projects received 8% of the original $1.5 billion. In the second round of grants, port-related infrastructure received 17%.

Saturday, December 17, 2011

New LNG fuelled tanker first for inland waterways

From Marine Log
15 December 2011

The inland waterways of the Netherlands are now home to the 6,100 dwt Argonon, the world's first new LNG-fuelled tanker, following its delivery by the Dutch Shipyard Trico B.V.
Built to Lloyd's Register class, MT Argonon represents a significant milestone for the Deen Shipping subsidiary, Argonon Shipping B.V., in its pursuit of cleaner transport solutions for Europe. Lloyd’s Register helped the owners and regulators to identify their risks, meet regulatory requirements and overcome the technical challenges for the precedent-setting tanker.
"This has been a great project and it is a significant first," said Piet Mast, Lloyd’s Register's Marine Business Manager for Western Europe. "The nature of inland waterways traffic, which passes through or close to major population centers, makes LNG an attractive way to reduce harmful local emissions. We had to look carefully at the risks and worked closely with the owner and the regulators to ensure that they understood, and were comfortable with, the technical solutions that were developed."
The dual-fuel system is designed to burn an 80/20 mixture of natural gas and diesel, reducing SOx, NOx and particulate-matter emissions, as well as reducing the greenhouse gas emissions from tank to flue. The LNG is stored in a transport tank located on deck, supplied by Cryonorm Projects, based near Amsterdam.
"The inland shipping industry, as far as we know, is the safest and cleanest mode of transport. But, to keep this lead, we have to take a big step forward in environmental performance," said shipowner Gerard Deen. "I think that the dual-fuel principle is a way to reduce the emissions in our sector. Lloyd’s Register was very pragmatic in their approach to finding solutions to convert seagoing regulations into inland shipping rules regarding dual fuel."
Along with Lloyd’s Register, the Netherlands Shipping Inspectorate approved the vessel’s LNG system for operation in the Netherlands and the ship has taken on its first load of LNG bunker fuel. The next step is to secure the regulatory approvals from the Central Commission for Navigating on the Rhine and the UN-ECE ADN Safety Committee, to open the way for navigation beyond the Netherlands.
"The owners are to be congratulated for being pioneers," said Mast. "At Lloyd’s Register, we have been involved with LNG for a long time, so were able to provide support through the plan-approval and construction processes. We now look forward to supporting the ship through many years of ‘clean’ trading."
Argonon has entered service and will start operating with gas this week following some final, main-engine tests. Propulsion power for the 110-meter-long tanker is supplied by two, dual-fuel Caterpillar DF3512 engines, each providing 1,115 KW.
The ship has the capacity to transit from Rotterdam to Basel and back without bunkering.
"We are currently providing technical and regulatory guidance for 20 confirmed or proposed inland waterway applications that intend to use LNG as fuel," says Bas Joormann, West European Area Inland Waterway Product Manager for Lloyd’s Register. "There is a lot of interest, and for good reason. Inland waterways, like ferries in emission-control areas, are very suitable for LNG. But the regulatory regime is different. We're helping owners and governmental bodies to identify the risks and manage them to at least the level of safety provided by the existing fuel-management and combustion requirements."

Political Shenanigans


My posts are generally related specifically to the Marine Industry, so this is a modest one-time departure from that theme. Today, the congress passed a two month extension of the payroll tax cut, in addition to funding the government for the remainder of the governments fiscal year. There is an incredible amount of political grandstanding happening at the expense of the American people. 

I am currently unemployed, trying to survive on the income generated by this blog (which isn't easy.) I have been denied unemployment; I am a Veteran; and I have been dedicating 40 to 50 hours per week looking for a new career. No less than 9 times, I have been told by prospective employers that they were waiting to see what the tax implications are before taking on any new employees. 

So, to the American Congress, I would like to give a big (and yes, very sarcastic) "Thank You!" 

Perhaps the most stomach turning rhetoric I'm hearing is the push to create more jobs for the Veterans coming home from Iraq. Meanwhile, the Keystone Pipeline remains on hold; the payroll tax cut is temporarily extended for two moths; major shipping ports are in need of significant improvements; Inland waterways are in need of improvement; Schools are still a mess; and there is still no dramatic economic rebound from the  800 billion dollars in "shovel-ready" projects that were supposed to save us all. 

Businesses like stability, and our Congress is not providing that. Two months? Again, my sarcastic thank you. Thank you for giving business 2/3 of one fiscal quarter in stability and predictability.
So, what will I do? Well, I will continue looking for work. Hopefully, the new year will  yield more positive results.

Record Breaking Volumes for Port of Los Angeles

Fron IFW Freight and Logistics News Service
16 December 2011


The US port of Los Angeles has reported a record year for exports, buoyed by an all-time monthly high for goods shipped overseas in November, the second consecutive month of record export volumes.

LA exported 1.9 million containers in the first nine months of 2011, breaking the previous record of 1.8 million in full-year 2010.

And imports were 6.2% higher in November than in 2010.

The largest US container port said it was on course to export more than 2 million teu this year.

Exports reached the highest monthly volume in the port’s history last month, handling 195,877teu, 15% up on the previous November. And in October, the port handled 193,547teu, up 28% on October 2010.

Goods exported include raw materials, cotton and grains, as well as high-value goods, including computers, medical equipment and aerospace components.

The rise in export volumes from LA has been buoyed by the weak US dollar boosting demand for US goods, particularly in Asia. The stagnant domestic economy also has forced the country to find new income in foreign markets.

Last year, President Obama outlined a National Export Initiative, aiming to double exports through the nation’s seaports by the end of 2014 to boost the ailing domestic jobs market.

The US will focus on India, China, Brazil and other emerging markets with strong potential for growth.

Friday, December 9, 2011

Like the Railroads, but better.

From Professional Mariner 


08 December 2011



 
 
(NASHVILLE, Tenn.) -- America's barge industry is entering the spotlight in an effort to win more federal dollars, National Public Radio reported. Waterborne infrastructure needs an estimated $8 billion worth of work. The industry said barge transportation is "like railroads but better." One critic argues that private business should pay for the improvements.
 
 For the original NPR broadcast click here.

Tuesday, December 6, 2011

Navy Purchases Nearly Half Million Gallons of Biofuel

WASHINGTON, Dec 5, 2011 (GlobeNewswire via COMTEX) -- Dynamic Fuels, LLC, a joint venture between Tyson Foods, Inc. and Syntroleum Corporation, has been awarded a contract to supply the U.S. Navy with 450,000 gallons of renewable fuels. Solazyme, Inc., a renewable oil and bioproducts company, will help Dynamic Fuels fulfill the contract, which the Navy and the USDA report is the single largest purchase of biofuel in government history.
The contract involves supplying the Navy with 100,000 gallons of jet fuel (Hydro-treated Renewable JP- 5 or HRJ-5) and 350,000 gallons of marine distillate fuel (Hydro-Treated Renewable F-76 or HRD-76). The fuel will be used as part of the Navy's efforts to develop a "Green Strike Group" composed of vessels and ships powered by biofuel.
The Navy contract follows on the heels of both companies' involvement in historic commercial airline flights using biofuel. This includes Dynamic Fuels' renewable jet fuel work with KLM Royal Dutch Airlines, Finnair, Thomson Airways and Alaska Airlines, and Solazyme's recent flight and partnership with United Airlines, which includes a letter of intent to provide 20 million gallons a year starting in 2014.
The fuel for the Navy will be manufactured at Dynamic Fuel's Geismar, Louisiana, renewable fuels plant using U.S.-sourced yellow grease (used cooking oil) as well as Solazyme's tailored algal oil as feedstocks. The fuel will be delivered to the U.S. Navy in May 2012. The Dynamic Fuels plant, which has been in operation for more than a year, is designed to convert non-food feedstocks such as algal oil, animal fats, and greases into renewable fuels.
"This award clearly demonstrates that we're building momentum for the sale and use of our renewable fuels," said Jeff Bigger, director of the Dynamic Fuels LLC Management Committee. "We've previously provided the U.S. military with fuel for testing. We believe this contract confirms they recognize the performance and environmental advantages of our fuel since they're coming back for more and are asking for a much larger volume."
"This is an historic contract and we are proud to be teaming up with Dynamic Fuels to produce and deliver the advanced biofuel to the U.S. Navy to sail the Great Green Fleet. Dynamic Fuels has been a leader in next generation advanced biofuels technology and this partnership further solidifies the progress that both of our companies are making in bringing advanced renewable fuels to commercialization," said Jonathan Wolfson, CEO, Solazyme. "Solazyme is honored to be working with the U.S. Navy and DLA-Energy in driving forward the Navy's effort under Secretary Ray Mabus to source 50 percent of its energy from renewable sources by 2020."
To see video of operations at Dynamic Fuels, click on the following link:
http://www.youtube.com/watch?v=zsI1dov9Xbw
Photos of the facility can be seen by clicking:
http://www.flickr.com/photos/tysonfoods/sets/72157625319377772/ .
About Tyson Foods
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is one of the world's largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and services to customers throughout the United States and more than 130 countries. The company has approximately 115,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
The Tyson Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3224
About Syntroleum
Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining(R) technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture -- known as Dynamic Fuels -- was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the Company's web site at www.syntroleum.com
About Solazyme, Inc.
Solazyme, Inc. is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value tailored oils. Headquartered in South San Francisco, Solazyme's renewable products can replace or enhance oils derived from the world's three existing sources -- petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) fuels and chemicals, (2) nutrition and (3) skin and personal care. Solazyme's oils and fuels provide compelling solutions to increasingly complex issues of fuel scarcity, energy security and environmental impact while fitting into the pre-existing multi-trillion dollar fuel infrastructure. For more information, please visit our website: http://www.solazyme.com
Solazyme(R), the Solazyme logo and other trademarks or service names are the trademarks of Solazyme, Inc.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Solazyme, including statements that involve risks and uncertainties concerning: the future manufacture and delivery of jet fuel by Solazyme and the timing of such delivery; the potential purchase of fuel by United Airlines; the timing of the delivery of fuel to the U.S. Navy and what that fuel will be used for; and Solazyme's future commercialization plans. When used in this press release, the words "will," "expects," "intends" and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: the ability of Solazyme and/or Dynamic Fuels to produce in-spec jet fuel at a commercially acceptable price; Solazyme's ability to access sufficient manufacturing capacity; and Solazyme's ability to maintain existing, and establish new, strategic business relationships. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q, for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Dynamic Fuels

Monday, December 5, 2011

The Russians Are Coming!

This is a nice follow up to our post on November 29th about the failed fuel delivery to Nome, Alaska. The Jones Act Actually gets in the way of a more economical solution. I will also be a historical event for the Nome and the State of Alaska.


By Laureli Kinneen, KNOM - Nome | December 5, 2011 - 1:28 pm 

Photo courtesy of Elaine Smiloff, Adak Harbormaster
A failed marine delivery of 1.6 million gallons of fuel due to November’s storm spurred the leadership at the Sitnasuak Native Corporation in Nome to get creative. They’re looking to Russian and Korean companies to keep fuel costs down in the Western Alaskan community.
Sitnasuak and a Russian shipping company may very well make history this month. Sitnasuak Native Corporation has signed a contract with Vitus Marine to deliver 1.5 million gallons of fuel to Nome – via marine tanker. The delivery in the double-hulled Ice Classed Russian tanker is scheduled for late December and will replace the 1.6 million gallons that was not delivered by Delta Western due to the November storm.
If the newly-planned delivery is successful, Sitnasuak Board Chairman Jason Evans says the voyage will mark the first time a marine fuel delivery is made to a Western Alaska community in winter.
Evans says, overall, while untraditional, the icebreaking option is significantly lower in costs than flying fuel to Nome. He says there are too many variables at this point for a specific number that consumers will eventually pay.
The Russian vessel, the Renda is currently in Vladivostok, Russia and will be inspected by the Coast Guard on Wednesday. The Jones Act states that a foreign vessel cannot carry cargo from the U.S. to the U.S., so the fuel will be purchased in Inchon Korea. Evans says there will be added costs to this mode of delivery.
When it comes to Delta Western – the company that did not deliver the original fuel purchase – Vice President Kirk Payne says he’s not sure what fair share means.
Payne says there are no lawyers involved and nothing has been filed. He says a dialogue continues between the two companies.
The double-hulled Ice-Class Russian tanker the Renda is certified to travel through four feet of ice and recently traveled through five feet of ice while delivering fuel to the Russian Far East. It’s unclear whether the Renda will dock at the inner or outer harbor once it arrives in Nome. The tanker has two kilometers of hose that could be put over the ice to the fuel depot.
The U.S. Coast Guard is getting approval for the U.S.’s only icebreaker – the Healy – to remain in the area until the delivery is made.