Florida Getting Into the Ethanol Biz

Cindy Zimmerman

US EnviroFuels A Florida-based domestic fuel company is causing some citrus producers to consider switching to corn. US EnviroFuels of Tampa recently announced plans to build Florida’s very first ethanol plants, one at Port Manatee and a second at the Port of Tampa. Both plants are projected to be 40 million gallon per year facilities. According to the company website, they want to “help Florida reduce its heavy dependence on imported gasoline by building a Florida-based renewable fuel industry,” and to “enhance the Florida economy through utilization of a variety of local, Florida feedstocks, including sugar-based streams, citrus pulp waste, green tomato discards, beverage waste, and urban yard waste, thereby minimizing commodity risk exposure.” While corn production in that part of the country is virtually non-existent, except for sweet corn, it is a major citrus producing area. However, the Florida citrus industry is facing some potentially devestating problems right now with fears that citrus canker may be out of control in the state. Another disease, citrus greening, is also putting pressure on growers. Combine that with recent hurricanes and some growers are thinking about growing corn instead , according to an article today in the Bradenton Herald. That would be interesting. Florida is certainly capable of growing corn for ethanol, but things like citrus and vegetables are higher value crops.
Just a note about the company – I had to do some pretty serious searching to find the website, not sure why. Maybe they just don’t have it registered with the search engines yet. I also think the logo is kind of ….well, crude-looking I guess. Seems like they have not put much into that aspect of their business yet.

Ethanol, Production

Mean Green Team

Cindy Zimmerman

GreenShift The Mean Green Biofuels team is growing bigger. Parent corporation GreenShift has unveiled plans to build a 30-million-gallon-per-year biodiesel production facility in northeastern Indiana. We just reported earlier this month (Green News) on plans for a facility in Tennessee. The company plans to build, own and operate five such plants, between 20 and 60 million gallons per year each, by the end of ’06. Mean Green BioFuels produces biodiesel fuel from soybean oil, animal fats from rendering operations and wastewater sludge and corn oil extracted from ethanol facilities. Arlington, N.J.-based GreenShift is a publicly traded natural resources and environmental business development company.

Biodiesel, Production

Renewable Fuels Standard For 2006

Cindy Zimmerman

EPA The Environmental Protection Agency is all hyped-up about implementing the Energy Policy Act’s new Renewable Fuels Standard. According to a press release issued by the agency today, the first step of the program is an almost three-percent standard for 2006.

“Under President Bush’s leadership, we are addressing our nation’s growing energy demand in a way that supports our goals for a clean environment and healthy economy,” said EPA Administrator Stephen L. Johnson. “This investment in renewable fuels made from domestic crops will support American agriculture and replace fossil fuels with an increasing amount of cleaner-burning alternatives such as ethanol or biodiesel illustrating that environmental progress and economic development can, in fact, go hand-in-hand.”

The regulation announced today explains how industry will comply with the Energy Policy Act’s default provision requiring that 2.78 percent of the gasoline sold or dispensed to U.S. motorists in 2006 be renewable fuel. The regulation is intended to provide market certainty for smooth implementation of the program in 2006 as EPA expands the program. Many of the act’s other provisions regarding the Renewable Fuel Standard Program for 2007 and beyond will be implemented in subsequent regulations.

The program will significantly increase the volume of renewable fuels blended into motor vehicle fuels. Various renewable fuels can be used to meet the requirements of the program, including ethanol and biodiesel. Under this standard, refineries, blenders, and importers would collectively be responsible for meeting program requirements for 2006, where compliance would be calculated over the entire pool of gasoline sold to consumers.

For more information on the Renewable Fuel Standard Program, the EPA suggests you visit http://www.epa.gov/otaq/renewablefuels/

Government, Legislation

Biodiesel: His Majesty the King’s vision

Cindy Zimmerman

I am not making this headline up. It is straight out of today’s “Thai Day.” Basically, the short version is that the king of Thailand is promoting the use of biodiesel made from palm oil, but I just love the way the story is written for the Thai audience. It reads like a fairy tale …

Sometime in the early 1980s, as Sumet Tantivejkul remembers it, His Majesty the King took his trusted aide aside and said that he wanted him to look into the feasibility of using palm oil as an alternative to diesel as an energy source.

According to Sumet, His Majesty wished to keep his request quiet at the time and asked that the research be conducted discreetly, noting that the need for an alternative fuel would be realized in the decades to come.

Today, more than 20 years later, the need for an alternative to petroleum-based energy is all too apparent and HM the King’s idea of using palm oil as an alternative substitute for diesel is now a reality. As His Majesty declared in his birthday address to the nation, “palm oil seems to be a viable substitute.” He later went on to say that Prime Minister Thaksin Shinawatra “may have seen a royal car that runs on biodiesel, 100 percent of which is produced from palm oil. The exhaust smells good and doesn’t cause cancer.”

In response to His Majesty’s address, the Energy Ministry announced that it would promote biodiesel through tax incentives. HM the King’s interest in biodisesel became more pronounced in 2000, when petroleum prices started to soar. The Thai government responded by launching the country’s first “car-free” day to conserve oil reserves in an effort to raise public awareness of air pollution and energy conservation. But a symbolic day was hardly going to make a difference: what the country needed was a long-term solution to the problem of the earth’s rapidly diminishing oil reserves. As His Majesty realized, one solution lies in biodiesel, a substitute made from organic matter – in Thailand’s case, palm oil.

And they all lived happily ever after….

The picture is of the biodiesel reactor at the Pikul Thong Royal Development Study Center in Narathiwat.

Biodiesel, International

Merry Christmas From ZimmComm

Chuck Zimmerman

Staff of ZimmCommZimmComm, Marketing & Communications is the publisher of DomesticFuel. Our staff wishes you and yours a very merry Christmas.

From l-r are Amy, Cindy, Chuck and CJ the office dog. We promise to bring you a lot of interesting news and information in the coming year. It’s time now to take the weekend off and celebrate why we are so blessed.

Miscellaneous

Latest Ethanol Production Numbers

Cindy Zimmerman

RFA It gets to be monotonous to report that ethanol production is continuing to increase, but it is. The latest figures from the U.S. Energy Information Administration (EIA) show that ethanol production in the U.S. averaged 269,000 barrels per day (b/d) in October, up 8,000 b/d from September. The Renewable Fuels Association reports that demand for ethanol also grew substantially to 278,000 b/d, which is the second highest monthly demand, surpassed only by August demand. RFA President Bob Dinneen says it shows the industry is here to stay. “Now producing well over the first year requirement of the RFS, the ethanol industry is fully prepared to exceed the requirements of this program in the years to come.”

Ethanol, Production

Energy Conference Presentations Available

Cindy Zimmerman

energy conference Papers and presentations given at the recent Energy From Agriculture Conference in St. Louis are available on the Farm Foundation website. The conference was presented by Farm Foundation and USDA’s Office of Energy Policy and New Uses as a follow-up to the 2004 conference, Agriculture as a Consumer and Producer of Energy. USDA’s Office of Rural Development and Natural Resources Conservation Service also helped sponsor the event, so it was quite heavily focused on any USDA programs related to energy. Lots of information here – production, research, marketing, legislation – pretty well covers the waterfront. An executive summary of the conference proceedings will be available early 2006.

Agribusiness, Government

Oh E-Canada!

Cindy Zimmerman

Oh Canada Our neighbors to the north may soon have a national biofuels standard. The two leading politicial parties in Canada are both promising to require that renewable fuels, such as ethanol and biodiesel, make up 5 percent gasoline and diesel fuel by the year 2010. According to a Reuters Canada report, three of the 10 provinces — Ontario, Saskatchewan and Manitoba — already require some renewable fuels but there is not a national standard. The two major party candidates are Liberal Prime Minister Paul Martin and Conservative leader Stephen Harper and the election is just over a month away, January 23.

Biodiesel, Ethanol, International

Wisconsin Moves Toward Ethanol Requirement

Cindy Zimmerman

Wisconsin Wisconsin is poised to become the fourth to enact an ethanol blend requirement for gasoline. The state assembly last week passed a measure that will require all 87-octane gasoline to contain 10 percent ethanol by October 1, 2006. The state senate will vote on the bill after the holidays and if it passes the governor is expected to sign it. The three other states that already have ethanol mandates are Minnesota, Montana and Hawaii. According to the American Coalition for Ethanol, Minnesota’s E10 requirement has been on the books since 1997 and Hawaii’s will go into effect this coming April. Montana’s E10 law is contingent upon having 40 million gallons per year of in-state production capacity. Several other states, such as Missouri, have legislation in the works.

Ethanol, Legislation

Agri-Ethanol Products Plant Annouced In North Carolina

Chuck Zimmerman

Agri-Ethanol Products, LLCNow we’ve got an ethanol plant being built on the east coast. That’s different! We’ve seen so many of them being built in the midwest that it was only a matter of time until we saw them popping up in other areas.

Thanks to Mark Simone at Andrew B.Bellingham Commodity Trade Analysis for the heads up on this announcement.

Dave Brady, managing member of Agri-Ethanol Products, LLC (AEP) today (Dec. 16) announced the location of a $150 million ethanol plant to be located in Beaufort County, near Aurora, North Carolina. Mr. Brady thanked Governor Easley for the assistance that the state of North Carolina provided in making the plant possible. He also expressed his sincere appreciation to Secretary of Commerce, Jim Fain, Secretary of Revenue, Norris Tolson, Senator Marc Basnight, Representative Arthur Williams, Representative Joe Tolson, Larry Shirley and NC Department of Energy, the Northeast Partnership, Tom Thompson and the Beaufort County Economic Development Commission, the Town of Aurora and Roseview Capital.

The plant will produce 114 million gallons of ethanol per year as well as co-products consisting of distillers dried grains with solubles (DDGS) and CO2. This will be the first ethanol plant in North Carolina and the first on the East Coast of the United States. The ethanol production will be delivered in each of two, 57 million gallon per year phases, with the co-products output doubling accordingly. Phase I ground breaking and construction start-up is expected during the first quarter of ’06. Approximately $2 million will be utilized through various grant sources from the State to facilitate rail improvements critical to the operation of the plant.

Ethanol, Production