Green… and Safe

John Davis

U.S. LaborAn ethanol plant in Kansas is the first in the nation to win a U.S. government award for a safe working environment. The White Energy ethanol plant just outside of Russell, Kansas won the Department of Labor’s Occupational Safety and Health Administration’s (OSHA) SHARP award for “upholding high standards for workplace safety and health.”

This article from the Hays (KS) Daily News says Gov. Kathleen Sebelius and Department of Labor officials presented the award:

sebelius.jpg“I’m proud that the first ethanol plant in the nation to receive the SHARP award is a Kansas business,” Sebelius said. “Congratulations to White Energy and its employees on creating a safe work environment for this outstanding recognition. The award reinforces our state’s dedication to workplace safety and the future of ethanol and other renewable fuels production.”

“Our staff in Russell deserves credit for not only earning this award,” said Kevin D. Kuykendall, White Energy’s chief executive officer, “but also for their strong sense of pride and commitment to maintaining our company’s high standard by which all of our new and future plants will be emulated and measured.”

The plant employs 70 people who produce 50 million gallons of ethanol and 40 million pounds of wheat gluten a year.

Ethanol, News

Company Introduces On-site Biodiesel Tester

John Davis

Kittiwake logoCompanies worried about the quality level of biodiesel they’re selling… or buying… can now use a biodiesel testing kit that fits into a brief case. In fact, the Kittiwake Biodiesel test kit comes in a sturdy, aluminum case to make it easier to take anywhere.

This press release posted on the ThomasNet Industrial NewsRoom web site says the kit can give users results in just minutes:

The Kittiwake Biodiesel test kit allows users to rapidly determine:
· Water Content (of stock oils and biodiesel)
· Density (of biodiesel)
· Viscosity (of biodiesel)
· Total Acid Number (TAN) (of biodiesel)
· Acid Content (of stock oils, for catalyst optimisation)
· Visual Quality Check (Qualitative check of biodiesel)

The company claims the testing equipment will eliminate questions about quality from feedstock to end product.

Biodiesel

Pizza and Ethanol

Cindy Zimmerman

EPICThe ethanol industry is starting to get fed up with being blamed for higher food prices.

“The ethanol industry has become a convenient scapegoat for corporate America to justify price increases to maintain profits,” said Tom Slunecka, executive director of the Ethanol Promotion and Information Council (EPIC). “The debate over rising food prices has bordered on the ludicrous; the facts are conveniently omitted from this argument.”

The latest company to blame ethanol for food price increases is Schwan Food Company which announced “it will raise prices approximately five percent across its portfolio of pizza and snack products effective Sept. 1, 2007.”

AFBFEthanol has also been blamed for rising prices of everything from popcorn to milk recently, but the facts indicate weather and high energy costs should be taking the brunt of the blame, with an early freeze, low worldwide supplies of wheat, low milk production and rising energy costs being the driver, according to a report by the American Farm Bureau Federation.

AFBF economist Terry Francl stated, “There is little evidence that any food category has been affected by higher corn prices in any significant manner.”

The reality is that a 33% increase in petroleum prices or $1 per gallon of gas, raises the Consumer Price Index for Food by .6 to .9 percent. An equivalent $1 increase in the price of corn per bushel increases food prices only .3 percent. AFBF also repeated that the value of corn is generally a tiny fraction of the product’s price. “The value of corn in a 12-ounce box was around 2.2 cents when corn was less than $2 a bushel. Today it’s still less than a nickel. That’s not what you would call a big impact on the price of a major brand of corn flakes, which sells at $3.50 for a 12-ounce box.” Francl goes on to say, “Ethanol is getting a bad rap, because people aren’t looking at all the other factors that are involved in food prices.”

EPIC, Ethanol, News

Wind Association: Level Field with Solar Incentives

John Davis

AWEA logoThe American Wind Energy Association says wind power is not getting the government incentives that solar power enjoys… and that’s keeping wind energy from enjoying the same level of private home and business growth that photovoltaic systems now have.

In a report by the AWAE titled “Small Wind Turbine Global Market Study” featured in this story from NewRules.org, the association says while wind energy has seen a 14-25% growth a year since 1985, that number could be doubled if the start-up costs were subsidized as much as solar is:

The market for small wind systems, systems with capacities less than 100kW, has not seen significant federal policy changes since 1985. While the costs of electricity produced by small wind turbines has declined nearly 40% to 10 cents/kWh, hardware costs have not changed much and still inflict a high upfront burden on the consumer.

Purchasing and installing a small wind system typically cost $3,000 – $5,000 per kW for grid-connected installation. Residential friendly systems (3-5 kW) will shave 60%-80% off the owner’s electric bill. AWEA reports current payback periods for the average wind system range from 6 to 30 years, depending upon a number of factors (wind resource quality, siting, permitting costs, prevailing energy costs, and turbine performance).

Compared to small wind, barriers in the solar PV market have been significantly lessened on the federal level. The Business Energy Tax Credit and the Residential Solar and Fuel Cell Tax Credit (with a $2,000 cap) enacted in 2005, both provide up to 30% tax credits to commercial and residential solar users. These incentive policies are credited in part to the 36% solar PV growth rate in 2006.

The AWEA says similar incentives for small wind would result in similar gains. The Lawrence Berkeley National Laboratory said in 2004 that a 30% federal investment tax credit with no cap would drop the payback period for small wind projects by 4.5 years. The association goes on to say that those start-up costs are really the difference in wind energy really taking off.

Wind

Ethanol Corn Shortage Subsiding

John Davis

The corn shortage earlier this year, brought on by the unprecedented increase in interest in ethanol, seems to be easing a bit.

This story from Forbes says an expected giant corn crop this year should make up for all the corn going into ethanol production:

Ethanol producers have been squeezed by rising costs lately. Corn prices skyrocketed as demand from ethanol and food producers outstripped supply. But prices now look likely to abate because of ramped-up production. The Department of Agriculture reported last month that farmers planted 19% more corn than they did a year ago.

(Citi Investment Research analyst David) Driscoll said falling corn prices should boost margins at a time when the sector also enjoys strong political support. “Bipartisan political support for ethanol continues with all signs pointing to increased mandates for ethanol,” he said.

The news is so good Driscoll has been telling clients to buy some ethanol producers’ stocks… including VeraSun Energy and BioFuel Energy.
Shares of VeraSun Energy, which is headquartered in Brookings, S.D., gained 3.3%, or 46 cents, to $14.54. Shares of BioFuel, which is headquartered in Denver, Colo., gained 1.1%, or 10 cents to $9.19. Both are pure-play ethanol producers.

Ethanol, News

Biodiesel Bike Goes for Record

John Davis

cruciblecycle.jpg
You might remember this motorcycle from the National Biodiesel Board Conference in February (and my post from January 30th).

The folks from the Oakland, California-based The Crucible… a non-profit educational collaboration of arts, industry and community… will attempt to break the world speed record on a motorcycle when they try to crank their machine up to 160 miles an hour at the Bonneville Salt Flats in Utah in early September.

The “DIE(sel) MOTO” project is featured in the latest issue of Popular Science:

POWER
To double the engine speed, the team created a bicycle-chain-like add-on to the gearbox. The motor spins one sprocket, while a chain wrapped around it turns a second sprocket with half the number of gear teeth so it spins twice as fast, cranking up to 8,200 rpm.

AERODYNAMICS
To help the bike cut through wind, they hammered together pieces of aluminum to make a fairing. Then they built a custom aluminum fuel tank to match.

CONTROL
The bike is stable and street-legal (Sturtz has driven it around Oakland), but initially the danger was in just getting it moving. Since one foot pedal acts as the clutch and the other controls the shifter, they had to add a switch so the bike could start in gear with the clutch in, allowing the rider to balance. The team is working on a handlebar clutch.

Biodiesel

Biofuels Bring Left and Right Together

John Davis

Ethanol and biodiesel are experiencing what some are calling a “gold rush” as the biofuels have seen dramatic jumps in usage… and investors… to the green technology.

This column from Renewable Energy Access.com says, in the U.S., tax incentives have helped grow the biodiesel market by a whopping 1000 percent in just a two year stretch between 2004 and 2006:

An unholy alliance of characters is merging to promote biofuels. On the left, we have Woody Harrelson, Barack Obama, and Tom Daschle. On the right, we have Dubya (George W. Bush), his brother Jeb (a founder of the Inter-Americas Ethanol Commission), the former CIA director James Woolsey, a Christian coalition for environmental protection, and yes – believe it or not – Chevron, Marathon, Shell and British Petroleum all participating and actively promoting the biofuels sector for various business and regulatory reasons.

The article points out that things are poised to get even bigger as Pres. Bush unveiled his “20 by 10” plan, where the U.S. would switch to 20 percent biofuels by the year 2010. It’s the most ambitious renewable fuel plan in the world, and the author seems a bit surprised it came from an oil guy like Bush… but it seems to be a pleasant surprise.

The column finishes pointing out that growth for biofuels will be a good thing for all parties involved: Democrats and Republicans, hippies and capitalists:

But despite our innate human desire to cheer for a team like the D’s or the R’s, we should really be cheering for the B’s-the biofuels advocates, like Al Gore, Dubya and BioWillie who are part of the energy independence solutions instead of part of the problem. They are walking the walk, not just talking the talk. Why? Tax incentives for biodiesel and ethanol companies, are good and we will be able to fill ‘er up with cleaner fuels at more petrol stations if these tax incentives continue.

Interesting column. Give it a read by clicking here.

Biodiesel, Ethanol, News

US Steel to Roll on Biodiesel

John Davis

US Steel logoUS Steel is expanding its use of biodiesel, first at its Gary, Indiana plant and then at other US Steel facilities across the country.

US Steel GaryThis story from the Gary (IN) Post-Tribune says the company started fueling 85 of its trucks at the plant with biodiesel in April, and that will expand to its entire 150-vehicle fleet next August:

The company is using a blend of B5, which means the fuel is made up of five percent biodiesel and 95 percent petroleum.

The goal is to increase the blend to B10, or a 10 percent mix of biodiesel, in the next two to three months.

“I’m just happy today because we’re doing great things, and the best is yet to come,” Gary Mayor Rudy Clay said at the announcement.

The move is expected to save about 7,000 gallons of petroleum diesel a week.

Biodiesel

RFA Offers Ethanol Firefighting Video

John Davis

RFA logoThe Renewable Fuels Association has released a video to help first responders in case they have to fight an ethanol-fueled fire. The educational video, titled “Responding to Ethanol Incidents,” gives firefighters and ethanol plant operators important information on proper materials needed to fight potential ethanol incidents.

Much of the information in the video was gained during testing of different kinds of firefighting foams tested against ethanol fires at Ansul Fire Technology Center in Marinette, Wisconsin earlier this year.

dineen1.jpg“A dedication to safety has always been the foremost concern of the U.S. ethanol industry,” said RFA President Bob Dinneen. “With the industry growing at such a rapid rate, it is imperative that our nations’ first responders have the proper education and training to assist in an emergency at a moment’s notice. By making the video available to view on our website, we hope to communicate this message to first responders who have ethanol plants in their communities. On behalf of the RFA, I am confident that the availability of this DVD will help to combat any ethanol-related emergencies in the future.”

You can see the video at RFA’s web site, www.ethanolrfa.org.

Ethanol, News

RFA Supports House Ag Farm Bill

Cindy Zimmerman

RFAThe Renewable Fuels Association is pleased with support for biofuels in the 2007 Farm Bill passed by the House Agriculture Committee last week.

RFA President Bob Dinneen says the programs included in the Energy Title of H.R. 2419 will greatly contribute to ensuring America’s future energy security.

“The programs included in the Energy Title will promote Federal procurement of biobased products, provide loan guarantees for biorefineries and biofuels production facilities, expand research to better utilize ethanol co-products such as distillers grains, study the feasibility of a dedicated ethanol pipeline, and continue the Bioenergy Program to incentivize cellulosic and biomass feedstocks for ethanol production and energy production of ethanol plants,” said Dinneen.

“The RFA thanks the Committee for recognizing the potential of biofuels and providing the agriculture community, through H.R. 2419’s Energy Title, a pathway that will provide a more stable and sustainable energy future for all Americans. The RFA applauds the Committee for their work on this carefully balanced legislation, and we look forward to working with you as H.R. 2419 comes to the floor of the House of Representatives later this week.”

Energy, Ethanol, Government, News, RFA