Midwest Flooding Causing Hit to Ethanol & Biodiesel

John Davis

Flooding in the Midwest is dealing a hard blow to ethanol and biodiesel production on two fronts: 1. direct production of the green fuels, and 2. feedstock production.

This story from the Truth About Trade & Technology web site says the high waters have shut down several plants in flood-ravaged Iowa:

At least five small to midsize ethanol plants have shut down recently, according to David Driscoll at Citigroup, who declined to disclose the names of the plants. He warned that these closures are the “tip of the iceberg.”

The Iowa Renewable Fuels Association said Friday the flood has caused 300 million gallons of ethanol production, on an annual basis, to be forced off line and that could quickly grow to 400 million gallons.

In addition, the high water is putting corn fields under water, putting the most popular feedstock for ethanol at risk. That is also forcing already-high corn prices even higher, cutting into tight margins on ethanol production. Soybean fields across the Midwest are also too wet, having similar results on soybean oil used to make biodiesel.

Biodiesel, Ethanol, News

Get Domestic Fuel News On Your Website

Chuck Zimmerman

If you’d like to add Domestic Fuel news to your website we’ve just created a cool new widget that let’s you do so very easily. Just click on “Get Widget” below and it will provide you with the code to embed on your website or web page.

The widget allows you to customize it so it fits in with the theme of your web page. Just let us know if you have any problems.

Miscellaneous, News

E85 Grand Opening in Bloomfield Hills, Michigan

MI Corn Growers Assn.E85 will sell for $2.99 per gallon at the Bloomfield Hills Sunoco fueling facility at 42994 Woodward Ave., in Bloomfield Hills, Michigan. This promotion is part of a a joint effort with the Corn Marketing Program of Michigan and the Detroit Area Clean Cities Coalition from noon until 4 p.m. on Thursday, June 19.

A press conference will begin at 11 a.m. with featured speakers expected to include: Patricia Lockwood, Michigan Department of Agriculture; Jody Pollok-Newsom, Corn Marketing Program of Michigan; Douglas Smith, Oakland County; Maggie Striz Calnin, Detroit Area Clean Cities, Lansing Area Clean Cities, and Next Energy; and Rocky Yaldo, Sunoco station owner.

According to the Corn Marketing Program of Michigan, there are five operational ethanol plants with the capacity to produce approximately 250 million gallons of ethanol per year. The state houses 64 E85 fueling locations to date.

corn, E85, Ethanol, Facilities, News

Transitioning To A Bio Economy

Chuck Zimmerman

Steve HalbrookNext week I’ll be attending Farm Foundation’s program titled, “Transition to a Bio Economy: Risk, Infrastructure and Industry Evolution.” They’ve been advertising here on Domestic Fuel and if you haven’t made your reservation then there is certainly still time.

You may not be familiar with Farm Foundation or this series of programs they’ve been hosting on the subject of a Bio Economy. To learn more myself, I spoke with Foundation Vice President, Steve Halbrook, pictured. He says that Farm Foundation is a non profit organization that works in agricultural and rural policy issues. They bring together industry, government and academic leaders to focus on the challenges facing our food system and rural communities.

Steve says this event will have a special focus on biofuels since it affects all facets of ag and rural areas, especially ethanol in the mid west. He says that leaders from several government agencies, including USDA, approached them hoping that the Foundation could help them better understand this issue.

You can listen to my interview with Steve here: [audio:http://www.zimmcomm.biz/farm-foundation/steve-halbrook.mp3]

Audio, Ethanol, Farm Foundation, Government, News

ICM to Produce Food and Fuel

Cindy Zimmerman

The next generation of ethanol plants will be producing both food and fuel.

ICMICM, Inc. has announced that ethanol biorefineries investing in the company’s newest technology by the end of this year will be capable of commercially producing both food and fuel in 2010. The announcement was made during ICM’s customer meeting at the annual Fuel Ethanol Workshop (FEW) in Nashville, Tenn.

“We are talking about the ‘ethanol biorefinery of the future’…and very near future at that,” said Dave Vander Griend, founder, president and CEO. “Fifty years ago, the U.S. fed the world. We will be able to do that again with a food supply brought about by the evolution of ethanol production.”

ICM is a partner in LifeLine Foods of St. Joseph, Missouri which is already producing both food and fuel using the company’s technology.

corn, Ethanol, FEW, News

FEW Welcome

Cindy Zimmerman

FEW 08 welcomeThe 2008 International Fuel Ethanol Workshop is getting started in Nashville and is expected to attract some 4,000 visitors from around the globe.

This is the 24th year for the event that started out with just a few dozen dreamers. The FEW this year will offer 23 technical workshops on topics such as cellulosic ethanol, non-food feedstocks, water utilization and conservation, non-fossil fuel power, lifecycle analysis, training the biofuels workforce of
tomorrow; and more traditional topics including improving production efficiencies, plant management, and plant safety.

FEW 08 welcomeOpening speakers on Tuesday feature Dr. Robert Zubrin, author of the book “Energy Victory: Winning the War on Terror by Breaking Free of Oil.” He will deliver the keynote address during the general session and offer a plan of how ethanol could help safeguard homeland security and provide solutions for global warming and developing nations.

Renewable Fuels Association president and CEO Bob Dinneen will give an industry update during the general session and provide hope to those who look to move the industry forward.

Also making an appearance on Tuesday will be Bobby Rahal, Indy car champion and co-owner of the Rahal-Letterman racing team that features the Number 17 Team Ethanol car – a model of which is on display outside the convention center.

Cellulosic, conferences, EPIC, Ethanol, FEW, News, RFA

Study Finds Oil Impacts Prices More Than Policy

Cindy Zimmerman

Government biofuel policies affect fuel and farm commodity prices, but the price of a barrel of oil can have even larger effects.

FAPRIThat is the conclusion of a report by the University of Missouri Food and Agricultural Policy Research Institute (FAPRI). The study researched biofuel scenarios based on 500 random draws of possible weather, production and other market influences. The most extreme scenario allows current tax credits and tariffs to expire as scheduled and would not enforce the energy bill mandates. In this scenario, without most current biofuel policies, corn prices would decline 14 percent on average compared to a scenario that continues current support measures.

“The impact of biofuel policies depends not just on the policy but very much on the market context,” said Pat Westhoff, FAPRI co-director.

“Mandates have little market impact when high petroleum prices contribute to high biofuel prices and production levels.” Westhoff said. “On the other hand, mandates can be important when petroleum prices are low or crop supplies are reduced.”

The report, “Biofuels: Impact of Selected Farm Bill Provisions and other Biofuel Policy Options,” was published online June 12.

corn, Ethanol, News, Research

Sun Powering Rice Milling Operation

John Davis

A California rice miller will dedicate the largest rice plant solar installation in the U.S. on Wednesday, June 18th.

Far West Rice will unveil its $6.5 million, one-million megawatt, Mitsubishi Solar System, that the company is using to power its milling operation at Nelson (south of Chico), California.

The solar array will meet about 70-80 percent of the total energy costs of the rice plant, using more than 5,500 Mitsubishi Electric solar panels installed by Pacific Power Management, LLC. When the plant is not operating, the solar system will feed electrical power back into the electrical grid.

Greg Johnson, Executive Vice President of Far West Rice, Inc. said “Going solar made sense from a business standpoint. Our electricity bill will be lower and the installation also means that our communities can breathe easier and enjoy California’s beauty with less air pollution. We are excited to be involved in this technology and know that it will exceed our expectations.”

Mark Frederick, managing partner of Pacific Power Management, commenting on Far West’s installation, said: “Far West Rice showed great initiative in going solar. They have a system now that sets the green standard in the rice industry and gives them a competitive advantage that will only grow as electricity prices increase.”

Solar

Ethanol Credited for Lowest National Gas Prices

Cindy Zimmerman

Nationwide, the average cost of gas has hit a record $4 a gallon, which means some areas, like California, the average price has topped $4.50 a gallon.

MO Gas PricesBut in Missouri, the average price of $3.82 a gallon is the lowest in the nation – in part because of ethanol. The state implemented a ten percent ethanol mandate this year, which a recent economic study said amounted to saving consumers almost 10 cents a gallon at the pump.

And the mandate will stay in place statewide, despite a recent request for a waiver by Kansas City. Missouri Governor Matt Blunt denied that waiver on Friday.

“We have reviewed the request for a waiver of the E-10 standard in the Kansas City area,” Gov. Blunt said. “After thorough consideration of all aspects of this waiver request, I have decided it is in the best interest of the state to not issue the waiver.”

Missouri CornThat was good news for Missouri corn growers, who strongly supported the state renewable fuels standard.

“With gasoline prices already soaring, removing ethanol in Kansas City would send prices even higher,” said Missouri Corn Growers Association president Mike Geske. “By denying the waiver, Gov. Blunt is preventing consumers from experiencing additional pain at the pump.”

corn, Ethanol, Government, News

US-EU Biodiesel War About to Heat Up

John Davis

The fight between American and European biodiesel makers is heating up. European biodiesel producers are urging the European Union to hit U.S. biodiesel with punitive fines as the EU is set to open anti-dumping and anti-subsidy investigations into imports of the green fuel from the United States.

This story from AFP says this comes after the European Commission started looking into complaints that the US was hurting Europe’s biodiesel industry:

The European Biodiesel Board called for the investigation in April, complaining that the European market was being flooded with US exports of a 99-percent biodiesel blend, which can receive a subsidy of 300 dollars (192 euros) per tonne.

On top of the US aid, exports of the so-called B99 blend are also eligible for a subsidy in Europe as well.

The lobby said the subsidies were squeezing European producers’ profit margins, putting most of them out of business and leaving capacity idle.

But American biodiesel producers aren’t taking this lying down. Manning Feraci, the National Biodiesel Board’s Vice President of Federal Affairs, has responded:

“The allegations of harm leveled by the European biodiesel industry in these trade complaints are baseless. It is disingenuous and hypocritical that several of the European biodiesel companies that joined in the complaints are the very entities actively involved in the trade of U.S. biodiesel.

“The European biodiesel industry is not being harmed by U.S. competition. High feedstock costs, changes to EU member policies – and in some cases – poor business practices are the true issues facing European biodiesel producers. It is unfortunate that the European Biodiesel Board (EBB) has found it politically expedient to blame the U.S. biodiesel industry instead of focusing its efforts on the true challenges facing its membership.

Feraci goes on to characterize the European reaction as a “protectionist ploy.”

Biodiesel, International