No Budget Change in Ethanol Tariff

Cindy Zimmerman

Bush BudgetReports of the demise of the ethanol tariff in the new White House budget were apparently greatly exaggerated.

Despite hints from Energy Secretary Sam Bodman last week that changes might be made to the expiring U.S. ethanol import tariff in its new 2009 government budget that was sent to Congress on Monday, no such changes were included.

Reuters reports that an energy department spokesperson said while the 54-cent-a-gallon tariff is set to expire at the end of December during the 2009 budget year, which begins this October 1, the administration will have discussions with lawmakers later this year on what should be done with the tariff.

The tariff is designed to protect the U.S. ethanol industry from other countries taking advantage of the 51 cent per gallon blenders’ tax credit.

Ethanol, Government, News

Interview with NBB Chairman Ed Hegland

John Davis

biodieselconference2.gifDomestic Fuel is here at the 2008 National Biodiesel Conference and Expo in Orlando, Florida, bringing you the latest updates from this gathering of biodiesel industry experts.

hegland1.jpgJust after we flew into the sun and warmth of a beautiful Central Florida day, Cindy was off to track down Ed Hegland, chairman of the National Biodiedsel Board. She caught up with Ed at a session on sustainable biodiesel production where it was announced a new task force would be formed to look at making biodiesel more sustainable and possibly move away from more expensive feedstocks, such as soybeans.

Listen to Cindy’s interview with Ed: [audio:http://www.zimmcomm.biz/nbb/nbb-08-hegland.MP3]

You can also stay up-to-date on all of the latest happening from the 2008 National Biodiesel Conference and Expo by going to the conference blog, where you can see even more pictures and hear more interviews. Check it out!

Biodiesel, Biodiesel Conference

Domestic Fuel at the NBB Conference

John Davis

biodieselconference1.gifThe 2008 National Biodiesel Board Conference and Exp is underway in sunny Orlando, Florida, where thousands of biodiesel producers, marketers, and industry folks gathered for the four-day event.

youngblood.jpgDomestic Fuel is there as well, covering the events of the conference. We’ve already heard presentations on sustainable biodiesel efforts, the state of the industry, and even a Super Bowl party featuring NFL Hall of Famer Jack Youngblood (shown with me… Jack is on the left), who was signing footballs and helmets to raise money for the National Biodiesel Foundation… a group that is promoting education and research efforts to advance the biodiesel industry.

A little later on today, we’ll hear from actress Darryl Hannah and get to go on a ride-and-drive event to take a spin in some of the latest biodiesel-powered vehicles.

Keep checking back here at Domestic Fuel to see updates, and you can go to the NBB’s conference blog, where we are posting more pictures and interviews on this week’s events.

Biodiesel

Biofuels from Leftovers and Food By-Products

John Davis

planzero.jpgA food bank association and a renewable energy company have joined to produce electricity from food and food by-products that would have been just thrown away.

oafbstorm.jpgThe Ontario Association of Food Banks and StormFisher Biogas, an Ontario-based renewable energy utility will work together to produce the power through what’s being called Plan Zero, according to this association press release:

Plan Zero will work with food industry producers, growers and manufacturers to direct organic by-products to StormFisher’s biogas production facilities – called anaerobic digesters – which accelerate the decomposition of organic matter to create biogas for use in producing electricity, natural gas and heat. Plan Zero will direct a portion of the proceeds from the sale of energy to Ontario’s electricity grid to the OAFB.

StormFisher’s anaerobic digesters can produce energy using a wide range of organic materials, from used cooking oils to cow manure. The company also formed relationships with farms, food processing facilities, universities and technology providers. Its first three biogas facilities are currently in early development in London, Drayton and Port Colborne, Ont. and will be operational by 2009.

This is truly a win-win-win situation with million of tons of food being kept out of landfills while helping food companies’ bottom lines and providing a way to get surplus food to more than 100 communities throughout Ontario through Plan Zero.

Biodiesel

Do You Know This Man?

John Davis

johndavispic.jpgWell, if you don’t, you will by the end of the 2008 National Biodiesel Conference & Expo in Orlando, Florida next week. I’ll be there covering the event for energy.agwired.com and posting on the conference blog as well.biodieselconference.gif

One of the items I hope to see (and bring to you) is a press event that will highlight the use of biodiesel by some of Florida’s biggest fleets, such as NASA and Universal studios:

WHAT: A press event announcing expanded usage of biodiesel in Florida, including some leaders of the local tourism industry. You will meet the innovators and hear news on biodiesel honors and usage from Florida fleets including NASA, Universal Studios and Florida Power & Light. These fleets are using biodiesel blends and leading the way to protect Florida’s delicate ecosystem by reducing their carbon footprint. Vehicles from these biodiesel users will be on display outside at the Gaylord Palms Resort Convention Center Main Entrance and Parking Area.

At the press conference, Universal Studios will announce the expansion of biodiesel to marine crafts.

The press conference will start 11 a.m. EST on Tuesday, February 5th in the Miami 2 Room at the Gaylord Palms Resort. Hope to see you there!

Biodiesel, Biodiesel Conference

New BioExtend Test Results at NBB Conference

John Davis

biodieselconference.gifJust a couple of more days until the National Biodiesel Conference & Expo in Orlando, Florida, and I’m looking forward to meeting all of the biodiesel movers and shakers I’ve had the pleasure to blog about for the last year.

eastman.jpgOne of the best things about a conference like this is all the new information that will debut… including the results of testing BioExtend , a high-performance antioxidant for biodiesel fuels that increases shelf life and enhances product protection. This Eastman Chemical Company (maker of BioExtend) press release gives us a glimpse at what we’ll be seeing at the conference:

“We are eager to share our test data at the 2008 National Biodiesel Conference & Expo,” says [Dr. Sharon Cline, Eastman’s BioExtend technology leader]. “Eastman hopes the new findings will help the marketplace make informed decisions on how to improve the oxidative stability of biodiesel.”

The testing explored a number of factors that affect the natural oxidative stability of biodiesel including feedstock choice, the production process, product handling, and contaminants. The impact of metal contamination was investigated using the Oil Stability Index (OSI) as a measure of oxidative stability. Biodiesel handling issues, including air intrusion, UV exposure and storage temperature, was also investigated. In addition to OSI, UV absorbance, peroxide value, and Gel Permeation Chromatography (GPC) were measured.

You can check out the results for yourself at booths 119-218 on Monday, Feb. 4, 2008 from 10:45 a.m. to 12:15 p.m.

Biodiesel, Biodiesel Conference

First E85 Station Opens in Phoenix

Cindy Zimmerman

Western States PeteroleumWestern States Petroleum, Arizona’s leader in biodiesel delivery, has become the first Phoenix retailer to offer E85 ethanol, according to a release from the Pima Association of Governments (PAG).

The news comes just in time for the Super Bowl, which means all those flex-fuel vehicles arriving in the state have a place to fuel with E85. “It’s a win win for everyone,” said Bob Kec, owner of Western States Petroleum.

“We were the first to offer BQ9000 certified quality biodiesel, and now to be the first to offer E85 makes us proud,” Kec said about the opening of Phoenix’s first E85 retail station.

Pima AssociationColleen Crowninshield, manager of the Pima Association of Governments’ Clean Cities Program, said, “It has been a long time coming. I receive phone calls and e-mails every day with people asking when Phoenix will have a retail station. Now I can actually have a positive response and tell them that they can find fuel for their flex-fuel vehicles in the market.”

Biodiesel, E85, Ethanol, Flex Fuel Vehicles, News

White House Budget May Change Ethanol Tariff

Cindy Zimmerman

Sam BodmanIndications are that the Bush administration will make changes to the ethanol tariff in its budget to Congress scheduled to be released Monday. Earlier this week, Energy Secretary Sam Bodman hinted that the White House’s 2009 budget may propose scaling back or eliminating the 54-cent-a-gallon import tariff.

In a speech to the U.S. Chamber of Commerce, Bodman said, “I would just say I think that there are advantages to having had the kind of both subsidies and tariffs that have helped protect this industry. I believe that, the best I can tell, this industry is pretty close to being able to stand on its own.”

Chuck GrassleySenator Chuck Grassley (R-IA) issued a statement.saying that removing the tariff would ultimately result in subsidizing Brazilian ethanol. “I can’t figure out why Secretary Bodman would want the United States to risk becoming dependent on Brazilian ethanol when we’re already dependent on Middle East oil. His comments really do a disservice to President Bush who has been the most pro-ethanol president we’ve ever had,” Grassley said.

“In addition, the United States already provides duty-free treatment for Brazilian ethanol that is merely dehydrated in the Caribbean Basin Initiative countries. Brazil has yet to make full use of this program. I don’t see why we should bend over backwards to provide yet more duty-free treatment for Brazil’s ethanol producers.”

Ethanol, Government, News

Take The Survey Reminder

Chuck Zimmerman

This is a friendly reminder and request that you go ahead and take our Domestic Fuel Reader Survey. There’s only about 12 easy questions so it will only take a minute and we’d really appreciate your participation. Thank you to all who have already taken a few moments to provide your feedback.

We’re going to pick one lucky winner from all the people who participate in our survey for a brand new, personalized 4G iPod Nano.

The Official Rules here (Word doc). I thank you very much for participating!

Miscellaneous

The Pros and Cons of Biodiesel Investment

John Davis

A column entitled “Should America invest in bio diesel in a big way?” debates the merits of making investments into biodiesel… and the conclusion seems to be a big positive endorsement of putting greenbacks into the development of green fuel.

Here are some of the highlights posted on Helium.com:

-Benefits of biodiesel-

Biodiesel is a clean and renewable fuel to other energy sources like petroleum, which means using it reduces air pollution and relieves fossil fuels reliance. Jatropha nut has been an increasing favourite raw material over others for biodiesel production because the plant can survive in tough conditions and it is inedible. Thus, it will not compete with other crops for valuable fertile land and the production will not be at the deprivation of food supplies. There are developing new technologies, such as, enzymes usage to speed up the production rate, removing the extreme condition requirements…

According to a United Nations official, biofuels like biodiesel is expected to provide for 25% of the world’s energy needs (Paul, 2007). Although the use of biodiesel locally is still in its infancy, biodiesel is projected to serve ready markets in Asia, Europe and United States. The European Union has mandated that 2% of petrol-based diesel must be mixed with biodiesel (Seng, 2007). There are plans to augment biodiesel blend to 5% in South Korea and to tighten diesel sulphur standards in Japan (Chan, 2007). Already, biodiesel blends is compulsory in Thailand while India wants to substitute 5% of the diesel consumption with biodiesel (Mukherji and Ramachandran, 2006). As such, the emergent biodiesel market is estimated to be worth US$1 trillion by 2020 (Wong, 2006).

But not everything’s perfect and the article offers caution:

-Uncertainty in biodiesel business-

Rising prices of the biodiesel supplies and decreasing diesel price is shaking investors’ confidence. Feedstock’s costs comprise 80% of biodiesel production and investment analysts have stated that palm oil diesel can remain lucrative only if palm oil, a raw material for biodiesel, is below US$450/ton (Foo, 2007). From 2006, the price of palm oil has increased to US$556/ton (Thukral, 2007). Moreover, regular diesel prices have dropped by 23% (Reuters, 2006)

In conclusion, the article encourages America to invest heavily in biodiesel because of the push worldwide for the cleaner fuel and favorable conditions in this country to make it happen. It says hedging investments can help diminish problems caused by rising biodiesel and feedstock prices.

Biodiesel