Ethanol and Corn Price Link Not Long Term

Chuck Zimmerman

Michael WetzsteinThe first speaker here at the Transition To A Bio Economy conference is Michael Wetzstein, University of Georgia. His talk deals with two issues. One is on price volatility and the other is on food and fuel.

Michael says that gas price volatility can be avoided with fuel diversification by blending renewable fuels with fossil fuels. That’s what his research shows. He also suggests that we could relax gas taxes and reduce the tariff on the importation of Brazilian ethanol.

Another part of his research is on food and fuel and to answer the question of “Is there a direct link between the volatility of ethanol production and the volatility of corn prices. His research has found that there is a link but not a persistent or long lasting one. In fact, in the long run he says there is no direct link.

The bottom line he says is to produce more food.

You can listen to my interview with Michael here: [audio:http://www.zimmcomm.biz/farm-foundation/ff-bio-08-wetzstein.mp3]

You can also download the interview using this link (mp3).

I’m also uploading pictures to a photo album which you can feel free to use if you’d like: Transition To A Bio Economy Photo Album

Audio, Ethanol, Farm Foundation, Food prices, News

Making a Transition To a Bio Economy

Chuck Zimmerman

Steve HalbrookThe Farm Foundation conference, “Transition To A Bio Economy, Risk, Infrastructure and Industry Evolution” is underway here in Berkeley, CA. Getting us started was Farm Foundation Vice President, Steve Halbrook.

This conference, which is focusing on biofuels, is part of a series, of which this is part 3.

The Transition to a Bioeconomy series is designed to assess the impacts of the evolving bioeconomy on agriculture, the food system, and rural regions. The third conference in the series, to be Oct. 15-16 in St. Louis, will address environmental and economic development impacts. The first conference in the series examined the integration of agricultural and energy systems. The last conference in the series, slated for early 2009, will focus on the implications of a global bioeconomy.

Transition To A Bio Economy Photo Album

Farm Foundation

Former EPIC President Gives Fond Farewell

John Davis

Just two years in and the Ethanol Promotion and Information Council has created a brand identity that’s sweeping across borders… both domestic and international. Tom Branhan, Glacial Lakes Energy, was the main man behind the “e,” serving as Board President for two years. Now, Tom has stepped down from his leading role, saying he’s confident about where the organization is coming from… and where it will be going.

“I am so proud of EPIC and what it’s become in a short two years. It’s nationally recognized now. The “e” is gaining acceptance all over the United States and all over the world.”

Chuck spoke with Tom at EPIC’s first ever annual meeting. You can listen to Chuck’s interview here:

[audio:http://www.zimmcomm.biz/epic/epic-annual-mtg-branhan.mp3]
Audio, EPIC, Ethanol, News

First E85 Station in Massachusetts to Hold Grand Opening

Burke OilE85 will sell for 85 cents per gallon for 85 minutes celebrating the opening of the first publicly accessed E85 fueling location in the state of Massachusetts. Dennis K. Burke, Inc. plans to hold a grand opening celebration on Thursday, June 26 at their new biofuels center at 410 Beacham St. in Chelsea.

“We’re very excited about the grand opening on Thursday. We are currently competively pricing the product at $2.85 per gallon,” said Dennis K. Burke, Inc.’s Chairman of the Board, Ed Burke. “Thanks to Irving Oil, Chelsea Fire, State Fire Marshal and Gov. Patrick’s administration, E85 is now available in Massachusetts.”

Thursday’s ribbon cutting will begin at 10:30 a.m. and will be hosted by Ed Burke and the company President, Ted Burke. Chelsea City Manager Jay Ash will emcee the event. Several state and local officials, as well as “green” industry friends are expected to attend. The E85 promotion, sponsored by General Motors, will begin following the ribbon cutting.

Burke is one of New England’s largest suppliers of diesel fuel, gasoline and motor oil products. The family-owned business has over 45 years of reliable service. They will also offer biodiesel at the Chelsea fueling facility, the first in the state.

Biodiesel, E85, Ethanol, Facilities, Miscellaneous

Biodiesel Boat Approaches Last Port Before Record

John Davis

The Earthrace, the 100 percent biodiesel-powered boat trying to set a record for circumnavigation of the globe, is approaching its last port before its final run back to Spain… and a world record.

This update from the earthrace.net web site says Earthrace will dock at Port Suez, Egypt, after getting special permission to go through the Suez Canal, and fuel up for the final run to Sagunto, Spain… where this amazing trip started back on April 27th:

Update from Egypt, 19.29 GMT. Due to essential maintenance work following a challenging trip through monsoon weather, Earthrace was not able to start the journey through the Suez Canal until this afternoon. The crew is very grateful to Admiral Fadel, Chairman of the Suez Canal Authority, for granting special dispensation to the boat to travel through the Canal. As vessels are unable to travel along the canal at night, the boat is now docked half way to Port Said, in Ismailia from where she will set off again at first light tomorrow. Thanks also to Felix Maritime Agents for all their help in making arrangements for a great transit.

On arrival in Port Said, the boat will stop to offload the ground crew and other additional passengers and continue on towards Spain…and the world record!

The Earthrace is in pretty good shape to break the record… about 2,500 miles ahead of the record set for circumnavigation back in 1998.

Biodiesel

Biodiesel Could Be Future for Railroads

John Davis

Trains are being touted right now for their efficient use of fuel. And riding the rails could become even greener, if some testing of biodiesel in locomotives proves positive.

A small train company in the Pacific Northwest is using biodiesel on some of its routes. This story from the Seattle Times says the Eastern Washington Gateway Railroad has fueled up its first train with biodiesel… and best of all… it even comes from a local company:

The train will stop at the Columbia Bioenergy plant here every week or so for another dose of the fuel made from canola oil, restaurant grease, soy and other crops. They hope to have a good idea of how it’s working by the busy harvest time.

“It’ll continue for the summer here, and we’ll evaluate it in three months or so,” said John Howell, president of EWGR, a company employed by the state to run the 109-mile rail line between Cheney and Coulee City.

The project is one of the first biodiesel tests on locomotives in the Northwest. So far, few trains use biodiesel, though there have been experiments in some passenger-train systems in Europe and U.S. shortline railroads similar to this one — in proximity to the crops needed and a production facility.

The demonstration project arose partly from proximity — the rail line runs past Columbia Bioenergy’s plant in Creston, and the company is a customer of the railroad. John Graff, a company founder, said his plant uses regional crops to produce the fuel, so the locomotive project creates a “full loop” between the railroad and its customers.

“We’re putting fuel back into someone who is bringing us our raw feedstock and shipping our biodiesel,” he said. “I think that’s kind of a unique thing.”

Columbia Bioenergy was Washington state’s first certified biodiesel refinery starting back in 2005.

Biodiesel

10th E85 Station in Tucson Opens With Promotion

The tenth E85 fueling station in Tucson, Arizona will offer E85 for $1.85 per gallon on Wednesday, June 25 in celebration of their grand opening. The Quik Mart at 1026 E. Irvington Road, at the intersection with Houghton Road in Tucson, will offer the alternative fuel at the discounted rate from 11 a.m. until 1 p.m.

“Bringing a clean fuel alternative like E85 to the Tucson consumer, being a good community partner and being a part of building a better tomorrow was important to Quik Mart,” said Troy Little, owner of the Quik Mart. “It just made sense.”

Quik Mart will also offer a jumbo hot dog, small bag of chips and 32-ounce soft drink for just $1.85.

“Opening Tucson’s 10th E85 site tells me that E85 is not only selling well for the other nine sites, but it also has found a permanent home in Tucson,” said Colleen Crowninshield, manager of the Tucson Clean Cities program at Pima Association of Governments. “With gas prices pushing $4 a gallon and the
need to reduce America’s dependence on foreign oil more apparent than ever, we’re proud to be a part of fueling Tucson for $1.85 with clean alternatives to petroleum, such as E85. We’d like to thank Quik Mart and all of our other stations for bringing these fuels to the Tucson region.”

The E85 fuel promotion is sponsored by the Ethanol Promotion and Information Council.

E85, EPIC, Ethanol, Miscellaneous

Biodiesel Could Bail Out Hummers

John Davis

General Motors’ Hummer has caught a lot of heat with gas prices climbing above $4 and $5 a gallon. Those high prices could be the death sentence for gas-guzzling, all-terrain vehicles, as GM looks to save its business by finding products that will sell. But their could be a glimmer of hope on the horizon for the go-anywhere… but drink-everything-in-the-tank… vehicle: biodiesel.

This story in the Boston Herald says the folks at GM need to figure out how to get good gas mileage while maintaining the Hummer’s legendary off-road performance:

For that reason, you’re not likely to see a gasoline-electric hybrid Hummer – too much weight and complexity for the backcountry – but the brand will offer biodiesel-powered versions of all its vehicles by 2010. Biodiesel isn’t made from oil and improves fuel economy 30% or so versus gasoline-powered versions of the same vehicle.

While the product planners look for platforms and technologies that could fit Hummer, strategists within GM ponder the idea of redefining the brand, perhaps as a line of environmentally friendly SUVs.

“It’s never going to be a green brand, but you can wash it in green,” said Joe Phillippi, principal of AutoTrends Consulting, Short Hills, N.J.

“In the end, I think they’ll develop the” smaller “H4 and improve the fuel economy of the H3 and H2.”

Leaner and greener, while keeping the meaner… isn’t that what keeps any business in business these days?

Biodiesel, Car Makers

Money Changing Hands at NexGen Biofuels

John Davis

Well, money oversight at least. NexGen Biofuels has announced plans to replace its current CFO with a more local representative.

NexGen Biofuels Ltd. has announced that Eran Rotem, its Chief Financial Officer, who currently lives in Israel, will be leaving NexGen, effective June 2008. The Company has initiated search for a suitable candidate in the United States to fill this position.

Ram Ajjarapu commented: “We appreciate the contributions that Eran has made to NexGen in the transition from Healthcare Technologies Ltd. His leadership and professionalism have been recognized by everyone throughout the organization. We sincerely wish him every success in the future.”

Click here for more information on NexGen Biofuels.

Energy

Iowa Corn Growers Optimistic

Chuck Zimmerman

Iowa Corn GrowersAt the Iowa Speedway yesterday, the Iowa Corn Growers Association held an outdoor press conference. They used it to help educate media about corn usage by placing banners on the side of a grain trailer showing the relative percentages of corn used for different purposes like livestock feed and ethanol.

I did a short interview with Gary Edwards, ICGA board member. Ken Root, WHO, also participated. Gary farms in Animosa, IA which is in one of the most flood impacted areas of the state. He says that although corn growth is behind schedule and there is a lot of land impacted, he expects that the state will still have a good crop. He wants people to keep in mind that last year they had a record corn crop and this year still has the potential to be one of the biggest. He says the water levels have gone down significantly already and he expects that a lot of those fields will dry out and be re-planted. He has no doubt that they’ll be able to provide all the corn needed for both food and fuel again this year.

You can listen to my interview with Gary here: [audio:http://www.zimmcomm.biz/epic/iowa-08-edwards.mp3]

Iowa Corn Indy 250 Photo Album

Audio, EPIC, Ethanol, Farming, News