RFS Rally

Cindy Zimmerman

Collin PetersonEngleWith a vote on the Energy Bill expected this week in the House, a Wednesday morning rally is being planned in support of increasing the Renewable Fuels Standard (RFS).

House Agriculture Committee Chairman Collin Peterson (D-MN) and Congressman Eliot Engel (D-NY) will host the media event which will include representatives from the Renewable Fuels Association and the National Biodiesel Board, as well as a variety of farm groups including the Farm Bureau, Farmers Union and corn, soybean, wheat and grain sorghum grower groups.

Others who will be showing support for the RFS include AMVETS, the Jewish Council for Public Affairs and the Truman National Security Project.

Energy, Ethanol, News

FTC Reports on Ethanol Market Concentration

Cindy Zimmerman

FTCA new report from the Federal Trade Commission says U.S. ethanol industry become more competitive in 2007.

According to the report, “The ethanol production industry is not concentrated, and has become even more unconcentrated over the last year.”

The FTC utilizes the Herfindahl-Hirschman Indices (HHIs) to determine concentration. As outlined by the FTC and the Justice Department, HHIs with values below 1000 are deemed not concentrated and competitive. Based on actual production volumes of ethanol (as compared to total capacity that includes gallons under construction), the FTC gives the U.S. ethanol industry a score of 465, down from 736 in 2006.

Since 2005, the number of ethanol production facilities operating across the country has increased from 95 to 134 as of December 2007. Similarly, the number of firms producing ethanol has also increased. “As of September 2007, 103 firms produced ethanol in the United States, a one-year increase of 13 firms, and a two-year increase of roughly 28 firms,” the FTC reports. While the number of firms producing ethanol has risen, the market share of the nation’s largest producer has decreased to approximately 16 percent, down from 21 percent in 2006.

Read the FTC report here.

Ethanol, Government, News, RFA

CASE IH Supporting 100% Biodiesel

Chuck Zimmerman

BiodieselCindy reported previously that New Holland is backing biodiesel 100%. Now it looks like sister company Case IH is coming on board with that idea.

Case IH has extended its recommendations on use of biofuels to include B100 — or pure biodiesel — on even more of its farm equipment models.

Farmers now can use B100 on nearly all Case IH medium- to high-horsepower tractors, combines, windrowers, and most self-propelled sprayers and cotton pickers — so long as proper protocols are followed for engine operation and maintenance.

“With record prices for crude oil, Case IH committed to exploring better ways to use environmentally-friendly biofuels made from renewable raw materials. We have conducted rigorous laboratory and in-field tests to evaluate how our engines perform with various biodiesel blends,” says Don Rieser, Case IH director of tractor product management. “As always, our ultimate goal is greater productivity for our customers. That’s why we also are committed to educating our dealers and customers on how to get the best results with biodiesel fuels — especially when using higher-level blends.”

Biodiesel

Biodiesel Helping Rebuild Greensburg, KS

John Davis

greensburg.jpgLast May, the town of Greensburg was virtually wiped off the map as a tornado ripped through the small town in Southwest Kansas. But despite losing almost everything, the resilient folks of Greensburg are getting a chance at economic recovery… by way of a green fuel.

This story in the Houston Chronicle says Torsten Energy, LLC will build a biodiesel plant near the town, employing 20 to 25 people:

mckinney.jpg“This is terrific news for Kiowa County and for Kansas,” said House Minority Leader Dennis McKinney, a Greensburg Democrat whose home was lost in the storm. “The more businesses that commit to building in Greensburg, the sooner hardworking families of our community will be back in town and back in the work force.”

Torsten Energy is based in nearby Wright in southwest Kansas. The firm said construction would begin after state regulatory permits were obtained.

“Like many Greensburg recovery efforts, we still have a lot to do before we can actually break ground,” said Patrick Stein, a representative of Torsten Energy who is overseeing the development. “Though we are still in the very early stages of development, we are completely committed to this community.

“We want to see Greensburg back on its feet, and we know projects like this are the way to make it happen.”

The announcement by Torsten comes as state officials announced a $17.5 million aid package for recovery from the tornadoes and summer floods in southeast Kansas.

Miscellaneous

Biodiesel – Built for Below 0

John Davis

biodieselsnowglobe.jpgSo, we’ve all heard the talk how biodiesel is just not built for the cold… how it gels up when the temperature goes down. But a ski resort in New England is proving that myth wrong.

This press release from the National Biodiesel Board tells how the resort is running its equipment on the green fuel:

cranmoreskiresort.jpg“We know that even with heavy snow falling and temperatures hovering around 20 below, we can count on our biodiesel-powered vehicles to start up and perform with no problems at all,” said Mersereau, Operations Director for New Hampshire’s Cranmore Mountain Resort. “We have been very pleased with biodiesel’s performance and have had absolutely no cold weather problems.”

In 2003, Cranmore Mountain, located in North Conway, NH, joined other ski resorts nationwide, such as Aspen, Colo., in fueling its snow grooming fleet with B20 (a blend of 20 percent biodiesel and 80 percent petroleum diesel). A grant from the Granite State Clean Cities Coalition (GSCCC) helped Cranmore make the switch to B20 and install a 4,000-gallon above ground fuel storage tank. Since then, Cranmore has continued to use B20 in its equipment and is now using Bioheat fuel to heat its buildings as well.

joe-jobethumbnail.jpg“Cranmore Mountain is one of many examples demonstrating that it is a myth that you can’t use B20 in cold weather,” said Joe Jobe, CEO of NBB. “As we enter the coldest time of year in many parts of the country, biodiesel users can rest assured that precautions such as using high quality fuel and following proper blending procedures, biodiesel blends are reliable even in sub-zero temperatures.”

Just like regular diesel, biodiesel can gel up in the cold weather. But the NBB has some tips to reduce that gelling, including mixing biodiesel with kerosene or diesel that has been treated with cold weather additives; using block and filter heaters; and even storing your vehicle inside. You can read more tips and stories about using biodiesel in the cold at NBB’s cold weather information web site: http://www.biodiesel.org/cold/.

Biodiesel

Corn Commentary Videos

Chuck Zimmerman

I don’t think I’ve had a chance to bring your attention to a series of video interviews I did recently at the National Association of Farm Broadcasting Convention. They have all been featured on Corn Commentary, the blog of the National Corn Growers Association that we created for them and help manage.

In this one I interview NCGA CEO Rick Tolman and University of Missouri ag economist Dr. Ron Plain. They point out that our corn growers have produced to meet demand for both the food and the fuel needs of our corn. It’s also interesting to note that higher corn prices haven’t really impacted food prices much. In fact, it’s really things like transportation costs that have driven food prices up.

As they point out, no one is starving anywhere because of biofuel production. The fact is our corn production has a lot of opportunity to grow due to demand and new technologies and that’s good for our farmers, our economy and our country. So that’s the word on this “renewable fuel” issue!

corn, Ethanol, News, Video

POET Celebrates 20 Years

Cindy Zimmerman

POETHardly anyone knew what ethanol was 20 years ago, but that is when the company formally known as Broin started in the ethanol business.

United States Senator John Thune, South Dakota Lieutenant Governor Dennis Daugaard and other elected officials helped the company now known as POET celebrate at their corporate headquarters in Sioux Falls, S.D.

“Jeff Broin and POET were present at the creation of the American ethanol industry,” said Senator Thune. “They deserve the highest praise for their historic leadership and for building South Dakota’s economy for the past 20 years.”

POET was founded 20 years ago when the Broin family from Wanamingo, Minn. purchased an ethanol plant in Scotland, S.D. Today, its 21 ethanol plants annually produce just over 1.1 billion gallons of ethanol and 3 million tons of DDGS, making it the largest producer of ethanol in the world. With five plants under construction and one in the midst of expansion, POET will be producing 1.5 billion gallons of ethanol by the end of 2008.

Ethanol, Facilities, News

Closed Loop Plant Closing

Cindy Zimmerman

e3biofuelsAn innovative “closed loop” ethanol plant in Nebraska shut down last week as the company filed bankruptcy, according to a report in the Omaha World Herald.

E3 BioFuels opened in June as a model for using energy from biogas derived from cattle manure and cellulosic biomass to power the plant. Manure from 28,000 head of cattle in a nearby feedlot was used to make methane that fueled the plant. Distillers grain, a byproduct of ethanol production, was then fed to the cattle. As a result, almost no fossil fuels would be used and carbon emissions from the manure were minimized.

However, the plant has been plagued by mechanical problems which has kept it from reaching full capacity.

“It’s a temporary shutdown,” said E3 spokesman R. J. Wilson. “With the mechanical failures hampering us, it has made it difficult to be profitable.”

The technology for the closed-loop system is sound, Wilson said.

“It was simply a mechanical failure which was beyond our control.”

Wilson said E3 BioFuels expects to file lawsuits against construction contractors.

Ethanol, Facilities, News

Time to Buy Land for Chesapeake Biodiesel Plant

John Davis

The company that has plans to build the U.S.’s biggest biodiesel plant is running out of time to purchase the 44-acre parcel of land along the Chesapeake Bay in Virginia before the land’s owner starts considering other offers.

seenergy1.gifSmiling Earth Energy got approval from the Chesapeake City Council to build the 320-million-gallon-a-year refinery six weeks ago, but this article in the Virginian-Pilot says company officials haven’t committed to the landowner to make the purchase:

“We’re down to the ninth inning,” landowner B. David Peck said this week.

“I am fully committed to selling the agreed-upon parcel of land to SE-Energy and I expect to close on the property very quickly,” he wrote in a letter that was presented to council members before the vote. “Anyone that says otherwise is ill-informed.”

Peck remained optimistic about the deal in conversations every few weeks with a Pilot reporter, even though he said that Smiling Earth missed key payments on the land earlier this year.

He said this week that he heard Smiling Earth’s financial backers would be in touch with him.

But he also said he would be forced to consider other deal prospects soon for the land, which is off Rosemont Avenue.

“In the next week to 10 days, if things don’t materialize, I’ll explore other opportunities,” he said Thursday.

Reporters, suppliers for the project, and people from the neighborhood who have been promised $5 million in redevelopment money from Smiling Earth have been unable to reach the company in recent days.

Biodiesel

Producing Hydrogen from Biodiesel

John Davis

What’s better than producing one clean-burning, renewable energy source? How about getting TWO clean-burning, renewable energy sources from one feedstock!

leeds.gifResearchers at the University of Leeds in the United Kingdom are looking at a way to get hydrogen gas from glycerin, a biodiesel by-product. This story from the Science Daily web site says it’s a green process that makes a green fuel even greener:

dupont.jpgThe novel process developed by Dr Valerie Dupont and her co-investigators in the University’s Faculty of Engineering mixes glycerol with steam at a controlled temperature and pressure, separating the waste product into hydrogen, water and carbon dioxide, with no residues. A special absorbent material filters out the carbon dioxide, which leaves a much purer product.

“Hydrogen has been identified as a key future fuel for low carbon energy systems such as power generation in fuel cells and as a transport fuel. Current production methods are expensive and unsustainable, using either increasingly scarce fossil fuel sources such as natural gas, or other less efficient methods such as water electrolysis.”

“Our process is a clean, renewable alternative to conventional methods. It produces something with high value from a low grade by-product for which there are few economical upgrading mechanisms” says Dr Dupont. “In addition, it’s a near ‘carbon-neutral’ process, since the CO2 generated is not derived from the use of fossil fuels.”

The article goes on to point out that this technology comes just as hydrogen-powered vehicles are poised to take off.

Biodiesel, Hydrogen