Electronics Retailer to Make Ethanol Investment

John Davis

REX logoREX Stores, usually known for selling televisions, stereos, and appliances is buying into ethanol.

According to this story posted on BizJournals.com, REX will invest between $35 million and $62 million in ethanol-producer One Earth Energy, which plans to start to build a 100-million-gallon-a-year plant this year in Gibson City, Illinois:

This purchase will allow Rex to secure a majority ownership interest with Earth Energy. However, this percentage will be determined based upon the participation by other investors in the offering.

Additionally, Rex has entered into an agreement with One Earth to fund up to an additional $6 million in interim financing in the form of secured debt, bearing an interest rate of 9 percent annually. The interim funding is intended to allow One Earth to proceed with development and construction schedule for ethanol production facility.

Ethanol, News

Bahrain Poised for Major Alternative Energy Investment

John Davis

Something is brewing with the oil-rich nation of Bahrain and alternative fuels.

This story posted on Grainnet.com says the CEO of Chicago-based Consolidated Biofuels has been invited to a private reception at the Bahrain Embassy in Washington, DC tomorrow (June 20th). Daniel Honeycutt’s visit to the embassy comes after his late-May trip to the Middle Eastern kingdom:

This invitation follows closely after a positive visit to Bahrain during which Honeycutt, and Marty Johnson of International Bio Fuels, were asked to speak and co-present by invitation at the Global CleanTech 2007 conference that was held in Manama, Bahrain, the capital city, May 29-31.

During the conference, Honeycutt was substantially quoted in the Bahrain Tribune, after a personal interview conducted by Ms. Siriwattasit of the Tribune.

From that interview, Honeycutt was partially quoted as saying, “Bahrain possesses more than $300 billion worth of equity in the financial sector alone, over 30 per cent of which represent idle funds that could be used to capitalize on increasing opportunities to incubate its nascent alternative energy industry into a multi-billion dollar market within the next 10 years.”

Honeycutt says Bahrain’s sophistication in the energy investment sector might position it well going into the alternative fuel market.

Biodiesel, Ethanol

Doyle Calls for Biofuels Backing

John Davis

Gov. Jim DoyleWisconsin Governor Jim Doyle is calling on Republicans in his state’s legislature to back his plan to spend $30 million on renewable energy.

TV station WKBT in La Crosse posted this AP story on its web site and said Doyle made the call in front of a biodiesel plant in De Forest:

Doyle is still smarting from Republicans on the budget-writing committee removing his proposal to spend $30 million over the next two years to pay for grants and loans to further develop renewable energy resources.

He says energy policy should not be partisan. But he accuses Republicans of lacking foresight on the issue.

Republicans on the budget committee objected to Doyle’s proposal to take the money out of the state’s recycling fund to pay for it.

Biodiesel, Ethanol, Government, Legislation, News

Biodiesel Better for Building

John Davis

Destiny USAThe smell of french fries fills the air. But this isn’t the back of some fast food restaurant… it’s a construction site where 100% biodiesel is fueling the heavy equipment.

Destiny USA, a destination resort under construction in Syracuse, New York, is dedicated to reduce the amount of fossil fuels in its construction site… and eventually at Destiny USA when it’s completed.

This press release from the National Biodiesel Board tells how construction companies and others are realizing the health, environmental, and energy security benefits of using cleaner-burning biodiesel in construction equipment:

“With the Destiny USA project, we will stop talking about our dependence on fossil fuels and instead demonstrate how we can earn our independence,” said Robert J. Congel, founder of Destiny USA. “This project will prove the viability of using 100 percent biofuel in all types of equipment, and will educate and challenge other developers in New York and around the country to adopt similar environmentally friendly approaches.”

Destiny USA will be a showcase for the world’s most advance technologies and services. Destiny began using lower blends of biodiesel, and is in the process of switching all 18 excavation and site work vehicles to B100. Through the duration of the construction, it is expected that nearly 100 different construction vehicles will run on biodiesel, consuming over 10,000 gallons of B100 per month for the next 6-8 months.

The Union of Concerned Scientists put out a report earlier this year that says construction equipment is the leading cause of diesel pollution in California (see my post from March 21st). And other construction companes and heavyequipment operators are getting the message. Earthwise Excavation of Snohomish, Washington; Turner Construction Company in Washington state; The Tennessee Department of Transportation; The Cherokee Boys Club, in Cherokee, North Carolina; Manatt’s, Inc., based in Brooklyn, Iowa; and North Bay Construction in Petaluma, California all have biodiesel success stories to tell.

NBB logoThe NBB has this link for you to read some of those stories.

Biodiesel

Gearing Up For Iowa Corn Indy 250

Chuck Zimmerman

Iowa Corn IndyIt’s time for the Iowa corn growers to really showcase their stuff this week as we lead up to the Iowa Corn Indy 250. Here’s a little promo you can listen to (mp3). The race is being sponsored by the Iowa Corn Growers Association and the Iowa Corn Promotion Board and is being “presented” by Ethanol.

This new race on the IRL schedule should be a corn farmer’s dream. High performance engines cranking out the rpm’s on pure ethanol fuel which is mostly made from corn these days. The Ethanol Promotion and Information Council is sponsoring my coverage starting on Thursday.

It looks like we’ve got at least 3 pump promotions planned in West Des Moines, Grinnel and Newton. Of course the race is on Sunday and we’ll be rooting for the #17 car driven by Jeff Simmons.

EPIC, Ethanol, Indy Racing, News

Algae Biodiesel is Popular Science

John Davis

There’s been some recent talk about turning algae into biodiesel… enough to catch the attention of the magazine Popular Science.

This article highlights an operation in Colorado with some great pictures, graphics, and even video of the process:

jimsears1.JPGAlgae seems a strange contender for the mantle of World’s Next Great Fuel, but the green goop has several qualities in its favor. Algae, made up of simple aquatic organisms that capture light energy through photosynthesis, produces vegetable oil. Vegetable oil, in turn, can be transformed into biodiesel, which can be used to power just about any diesel engine. (There are currently 13 million of them on American roads, a number that’s expected to jump over the next decade.)

Algae has some important advantages over other oil-producing crops, like canola and soybeans. It can be grown in almost any enclosed space, it multiplies like gangbusters, and it requires very few inputs to flourish—mainly just sunlight, water and carbon dioxide. “Because algae has a high surface-area-to-volume ratio, it can absorb nutrients very quickly,” (Solix Biofuels founder Jim) Sears says. “Its small size is what makes it mighty.”

Biodiesel

Closing the “Splash and Dash” Loophole

John Davis

Lawmakers on the U.S. Senate’s Finance Committee will take up a bill that’s supposed to close a loophole that has allowed importers to get millions of dollars in biodiesel subsidies designed to help U.S producers but for biodiesel that doesn’t end up helping American drivers.

This article from TheHill.com has more:

Known as “splash and dash,” the loophole allows 100 percent biodiesel made from soybeans and other commodities and imported from a third country, such as Brazil or Malaysia, to be carried to a U.S. port, where a “splash” of petroleum diesel is added. This allows the importer to qualify for tax credits intended to promote the production and use of U.S. biodiesel.

The ship then quickly leaves the U.S. port to “dash” to another port, usually in Europe, where the subsidized biofuel is unloaded and sold. Tax incentives have created a hugely profitable market for biofuels in Europe, so the companies pocketing the U.S. tax breaks are again rewarded in Europe.

Estimates are that the practice is costing U.S. taxpayers $30 million a year… and that’s supposed to get even worse as it becomes more widespread.

The Europeans aren’t too happy about the loophole, either, and they have even lobbied to change the law as well.

The loophole closure is in the Energy Advancement and Investment Act of 2007, which made its debut in the Finance Committee last week.

Biodiesel, Government, Legislation

Mitigating Biofuels Effects on Food

John Davis

AACC logoAACC International (formerly known as the American Association of Cereal Chemists) is inviting senior food industry executives to a three-day symposium and workshop to discuss the impact the biofuels industry is having on the food market.

The AACC web site has more information on the seminar, titled “Biofuels and Food, Mitigating the Impact of Biofuels Demand on Food Ingredients” scheduled for July 26-28th at the Hyatt Lodge at McDonald’s Campus in Chicago, Illinois:

An executive seminar designed for senior food industry executives that will:

* Define the current and future state and impact of burgeoning ethanol demand on agriculture and the food industry.
* Identify and review potential solutions to the price/supply issues generated by demand for corn and other agricultural commodities for ethanol production.
* Establish a framework for a subsequent Workshop /Seminar on practical product development to mitigate the impact of corn and other ethanol biomass demand.

This course is ideal for senior R&D and purchasing executives of food and beverage companies. In response to the global issue of Mitigating the Impact of Biofuels Demand on Food IngredientsEthanol and Food, AACC International has designed a workshop to encourage creative thinking, candid presentations and extensive networking opportunities between industry experts, solution providers and food and beverage industry decision makers.

Workshop subjects include projecting biofuels demand and the impact on food prices, supply chain risk factors, and a technical solutions panel, among others. In between, there will be plenty of time for breakout sessions and networking opportunities.

Reservation deadline is July 5th, 2007. Check it out on the AACC web site.

Biodiesel, Ethanol, Miscellaneous

Groundbreaking at Janesville Ethanol Plant

John Davis

Janesville Ethanol Plant GroundbreakingMinnesota Governor Tim Pawlenty was among the dignitaries who attended the groundbreaking for a new ethanol plant at Janesville, Minnesota last Friday.

The 100-million-gallon-a-year plant is being built by US Bioenergy, one of the leading ethanol producers in the country. From a company press release:

US Bioenergy“The start of construction on our Janesville plant marks another important milestone in the growth of US BioEnergy. Our team continues to execute our business plan with great success, keeping the company on track to reach its stated goal of 700 million gallons of production by the end of 2008,” stated Gordon Ommen, US BioEnergy’s CEO. “This plant, which will be our first in Minnesota, also further contributes to the geographic diversity of our facilities. We are particularly proud to have Minnesota Governor Tim Pawlenty, a national leader on the issue of renewable energy, join us for the occasion and to help create new economic opportunities for the greater-Janesville community.”

“In many ways, Minnesota has been the birthplace of the renewable energy movement and this plant marks another important step along the way,” Governor Pawlenty said. “Utilizing homegrown renewable fuels is good for our farmers, it’s good for rural economic development, it’s good for national security, and it’s good for the environment. We are very fortunate to have resources here in Minnesota and across the Midwest to support this need and visionary companies helping lead the way.”

Ethanol, News

Ethanol Plants Could Make Biodiesel

John Davis

Ethanol refiners are looking at ways of getting more products out of the raw ingredients they are using, and one of those new products could be biodiesel.

Normally, corn is used to make ethanol and soybeans are used in biodiesel. But this article on the Truth About Trade & Technology web site says many ethanol plants are looking at changing their operations to extract the corn oil during the ethanol production process:

This would allow corn oil to be used for biodiesel production and change the nutritional value of the distillers’ grains (DDGs) produced by ethanol plants.

There are two ways to extract corn oil to make biodiesel.

Jeff Kazin, general manager of extraction technology at Renessen, says his company is working on recovering the corn oil before it heads to fermentation.

Renessen is joint venture of Monsanto and Cargill. It operates a demonstration plant near the Cargill plant in Eddyville.

Kazin says they are able to take about 70 percent of the corn oil out of the kernel.

About 4 percent of a kernel’s weight is oil. Therefore, a bushel of corn would have about 2.24 pounds of corn oil. With a 70 percent retention rate, Renessen is getting 1.5 lbs./bu. of oil per bushel.

“That is food-grade corn oil,” Kazin says.

He says that means the grain is high quality. The corn oil potentially could be sold at the same price — about 35 cents/lb. — as soybean oil is being trade at the Chicago Board of Trade.

Meanwhile, researchers at VeraSun are looking at getting the corn oil from the distillers grain after the ethanol is made. In fact, the company is already considering a 30-million-gallon-a-year biodiesel plant to refine that oil into biodiesel. GS CleanTech Corp. is already extracting corn oil at its Little Sioux Corn Processors ethanol plant in Marcus.

Biodiesel, Ethanol, News