Indy Frenzy

John Davis

92nd Indianapolis 500I’m taking off for Indianapolis in about an hour. This year, I’ll be handling the Indy 500 on my own. The race isn’t until Sunday, but the Ethanol Promotion and Information Council has all kinds of pre-race activities scheduled for this week.

Tomorrow, I’ll be out at the pumps. Both EPIC and the Indiana Corn Marketing Council will be sponsoring discounted fuel. Consumers will have an hour and a half to get to the Crystal Flash station on 545 S. Rangeline Rd in Carmel, IN and fill up with E10 for $2.97 or E85 for $1.85. The promotion starts at 4 p.m.

EPIC is sponsoring a corvette giveaway with Hank FM on Wednesday.That’s right. A corvette. Qualified participants will try their luck at pushing a special button to see who will win the two-year lease of the 2008 vette. Find more information online at Hank FM’s Website. The radio station will will be providing live coverage of the Indy 500 on Sunday.

EPIC Fueling LogoOn Thursday, EPIC will host the Ethanol Summit and Panel Discussion. Guest speakers include Joie Chitwood of the Indianapolis Motorspeedway, Andy Miller, director the the State Department of Agriculture, Eermson Fittipidi, a two-time Indy 500 winner, Brazilian ethanol producer and driver of this year’s felx-fuel Corvette Z06 pace car, Bill Becker, president and CEO of LifeLine Foods – the provider of the E100 racing fuel for the IndyCar Series – and more.

The rest of the weekend will feature member activities, driver autograph sessions, garage tours, the IPL 500 Festival Parade and, of course, the 92nd Indy 500.

corn, E85, EPIC, Ethanol, Flex Fuel Vehicles, Indy Racing, News, Racing

USDA Makes Case for Food and Fuel

Cindy Zimmerman

Armed with power points and statistics, officials with the U.S. Department of Agriculture held a press conference in Washington DC Monday to discuss the case for producing both food and fuel in the United States.

USDA power point slide“We think the time has come for USDA to join in the public conversation about the relationship between food prices and biofuels,” said Agriculture Secretary Ed Schafer. “We want to offer our perspective and what has happened in the marketplace, to share our data and the analysis of what has happened.”

Presenting the data was USDA chief economist Dr. Joe Glauber, who pointed out that all commodity prices have risen in the past year, not just food prices. “We certainly don’t want to minimize what’s going on with ethanol, because it is a very important factor in today’s market, but it’s important to discuss it in its proper context,” Glauber said. He noted that all commodities are up 47 percent, food is up 46 percent, and oil is up 68 percent.

The factors Glauber says have contributed to higher food prices are economic growth, weather, export restrictions, higher food marketing and transportation costs, and finally, increases in biofuels.

An economic analysis of the pass-through for an increase in corn prices on the Consumer Price Index (CPI) shows that a 50 percent increase in corn prices raises the CPI less than one percent, but Glauber says, “It’s a difficult thing to sort out how much of the increase in corn prices was necessarily due to ethanol.”

However, he says the Council of Economic Advisers estimates the total global increase in corn-based ethanol production accounts for only about three percent of the recent increase in global food prices.

Link to USDA power point presentation slides.

Ethanol, Food prices, Government, News

EPA Seeks Input on RFS Waiver Request

Cindy Zimmerman

The Environmental Protection Agency is following through on Texas Governor Rick Perry’s request to reduce the volume of renewable fuel required to be used in motor vehicles and other engines. EPA is publishing a Federal Register notice opening a 30-day comment period on the request. The RFS mandate for 2008 is the equivalent of 9 billion gallons.

EPAThe Energy Policy Act of 2005 includes provisions enabling the EPA Administrator to grant a full or partial waiver if implementation of the RFS would severely harm the economy or environment of a state, region, or the entire country, or if EPA determines there is inadequate domestic supply of renewable fuel. In consultation with the Departments of Agriculture and Energy, EPA must decide on a waiver request within 90 days of receiving it.

Ethanol, Government, News

SunEthanol Awarded Third DOE Grant

Cindy Zimmerman

The U.S. Department of Energy recently awarded SunEthanol a $100,000 research grant to help America develop clean transportation fuels from a variety of non-food feedstocks, including corn stover, bagasse, switchgrass, sorghum, softwoods like pine, and high lignin poplar. This is the third DOE grant that SunEthanol has been awarded in the past year.

Sun Ethanol
According to the company, this latest grant will support SunEthanol as it pioneers a new process to simplify the production of clean ethanol fuel from two complex steps – hydrolysis and fermentation – into one simple step.

The company’s patented process, known as Complete Cellulose Conversion or “C3,” will be cheaper than the current process that uses enzymes to convert corn starch to fuel. Relying on a unique microbe discovered in Massachusetts, the Q MicrobeTM, SunEthanol’s C3 process has the potential to be the ultimate low-cost configuration for cellulosic ethanol technology.

Cellulosic, Ethanol, Government, News

Obama Calls for Greater Fed Role in Wind Power

John Davis

Democratic Party presidential candidate Sen. Barack Obama has called for a greater role for the federal government in the wind energy business. He believes with the proper amount of help, the industry could produce half of the nation’s energy needs.

The senator made the remarks during his first campaign stop in the state that is becoming a leader in wind energy production in this interview with the Argus (South Dakota) Leader:

Q: Does the federal government have a role in promoting wind power, and if so, what is that role?
A: Absolutely. The main thing we need to do short-term is pass the tax incentives that will expire in December. If we don’t get those tax incentives, those federal tax breaks in place, then you’re going to see a whole lot of wind power generation and industry moving to Europe. It’s already starting to happen. That’s one of the reasons I supported the energy bill that was passed a year ago. Not because I was thrilled with some of the provisions. In fact, I tried to get some stripped out – like tax breaks for oil companies. But because it represented a huge expansion and investment in wind energy. I want to put $150 billion over the course of 10 years in research around wind, solar, biodiesel, advanced technology for more fuel- efficient cars. And we can pay for it by charging polluters who are helping to contribute greenhouse gases. That, I think, is not only good for the environment, not only good for our national security because over time we’ll reduce our consumption of foreign oil.

Obama goes on to say that if the federal tax incentives for wind energy aren’t renewed, this country will lose out to European interests.

Just for the record, here are the renewable energy policies of Obama, Sens. Hillary Clinton, and John McCain. You read, you decide.

Wind

More Biodiesel Plants Switching to Animal Fats

John Davis

As the price of the main feedstock for biodiesel… soybeans… continues to rise, more producers are switching to alternatives, especially animal fats.

This story in the Des Moines (IA) Register says the change might help solve the food-versus-fuel debate:

Renewable Energy Group (REG) of Ames now runs animal fats in at least four of its seven biodiesel plants in the state, according to Gary Haer, vice president of sales and marketing.
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He says the animal fat fuel works well in the diesel market, whether it’s blended at 5 percent, 10 percent or 20 percent with regular diesel.

“Biodiesel made from animal fats is a very good product, and we are using it as one of our alternatives to soybean oil,” Haer said.

Another biodiesel group, Benefuel, which uses an India-developed technology to process the animal fat, is scouting the state for investors and plant sites.

The article goes on to point out that Iowa is a natural place for an animal-fat biodiesel plant since the state is such a large producer of cattle and hogs, and the fats would be available from the rendering plants.

But don’t think that animal fats, just like soybeans, will be immune to price hikes. The price for this new commodity has jumped 8 to 9 percent this year.

Biodiesel

Farm Bill Promotes Cellulosic Ethanol

Cindy Zimmerman

The Farm, Nutrition and Bioenergy Act of 2008 passed by Congress last week has some significant incentives to promote second generation ethanol.

Among them are a cellulosic biofuels production tax credit for up to $1.01 per gallon; funding for loan guarantees to commercial scale bio-refineries for advanced biofuels; a program to encourage farmers to establish and grow biomass crops in areas around biomass facilities; and continuation of research and development through the biomass energy research program administered jointly by the Departments of Agriculture and Energy. The bill more than doubles current funding, providing $118 million for research.

VereniumCarlos Riva, president of cellulosic ethanol firm Verenium, says the provisions in the bill will speed the development of cellulosic ethanol toward commercialization.

“America is preparing for the next important wave of alternative fuels, and this bill is a watershed moment in our national effort to develop energy that reduces greenhouse gas emissions and lessens America’s dependence on foreign oil,” said Riva.

Verenium operates one of the nation’s first cellulosic ethanol pilot plants in Jennings, Louisiana and is preparing to cut the ribbon at its 1.4 million gallon-per-year demonstration-scale facility in the same location on May 29.

Cellulosic, Ethanol, Government, News

House Committee Extends Biodiesel Incentive

John Davis

The U.S. House Ways and Means Committee has approved the Energy and Tax Extenders Act of 2008, a measure that will extend the biodiesel tax incentive through the end of next year and provides a dollar-per-gallon incentive for all biodiesel regardless of feedstock.

Passage in the committee gained the praise of the National Biodiesel Board:

“I would like to thank Chairman Rangel and the members of the Ways and Means Committee for extending and improving the biodiesel tax incentive,” said Joe Jobe, CEO of the National Biodiesel Board (NBB). “The biodiesel tax incentive is working, and the committee’s decision to support biodiesel will help our industry improve America’s energy independence by displacing foreign petroleum with clean-burning, domestically produced fuel.”

If finally passed by Congress and signed by the president, HR 6049 will also stop what’s known as the “splash and dash” loophole that has been letting fuel produced outside of the U.S. to come into this country and then sent to another country for actual use. That issue has been a bone of contention for many American biodiesel producers and groups for some time.

Biodiesel, Government, Legislation

Senators Pleased With Energy Title of Farm Bill

Cindy Zimmerman

Tom HarkinTwo of the main architects of the new Farm Bill are more than thrilled with overwhelming passage of the legislation this week by both the House and Senate.

“Senate passage of the farm bill conference report on a strong, bipartisan basis demonstrates support for core farm bill initiatives – conservation, energy, nutrition and rural development – while continuing and strengthening farm income protection,” said Senate Agriculture Committee chairman Tom Harkin (D-IA).

Harkin says the bill increases biofuels production by accelerating commercialization of advanced biofuels, like cellulosic ethanol, by helping farmers produce biomass crops, by providing grants and loan guarantees for new biorefineries, and by increasing bioenergy research.

Saxby ChamblissSenate Ag Ranking Republican Saxby Chambliss of Georgia said of the bill, “We’re going to make sure that we provide future generations with alternative energy projects and that we do it in the right way.”

The Farm, Nutrition and Bioenergy Act of 2008 passed the House by a 75 percent margin and the Senate vote was 81 to 15. However, President Bush intends to veto the bill because he says it is too costly and contains too little reform. The margin of votes in Congress indicate that they will be able to override the veto.

Biodiesel, Energy, Ethanol, Government, News

Ethanol on Display at Alternative Vehicle Expo

Cindy Zimmerman

Ethanol was in the spotlight at this week’s Alternative Fuels and Vehicles Conference & Expo in Las Vegas.

EPIC at AFViThe conference featured every vehicle technology under the hot sun on display and several panels and workshops helped to educate and provide information about the various blends of ethanol and especially how they can fit into greener fleets.

Ethanol Promotion and Information Council communications specialist Elizabeth Hilpipre says that several ethanol representatives appeared on panels at the event. “There were many questions during the conference about compatibility, sustainability and of course, food and fuel,” she said. “Over three different panels, EPIC Deputy Director Robert White spoke about the realities of the food and fuel debate, as did Team Ethanol IndyCar owner Bobby Rahal.”

During the general session, Rahal addressed his concern over the impact of $120+ per barrel oil, and the simple transportation costs associated with getting products to market, having more of an impact on food prices.

Overall, Hilpipre says the conference was a great success for the ethanol industry. “Fleet managers, average consumers and school kids turned out by the numbers to learn about the arsenal that continues to grow each year to help diversify our nation’s fuel supply,” she said.

EPIC, Ethanol, News