POETic Tribute

Cindy Zimmerman

POET FlagThe nation’s largest dry mill ethanol producer was recently honored by U.S. troops serving in Iraq.

The American flag in the photo being handed to POET CEO Jeff Broin by Major Andrew Chontos, MD was flown over the Sather Air Base at Baghdad International Airport, Iraq during OPERATION IRAQI FREEDOM on Sunday, June 24, 2007. The flag was flown “in honor of POET” for “strengthening our nation through energy independence,” according to the commemorative certificate presented with it.

POET Flag 2During the presentation at POET headquarters in Sioux Falls, SD, Major Chontos noted that the US Air Force is the highest fuel consumer of all the military branches. During a training weekend at the South Dakota Air National Guard, 10 F-16s typically fly two missions a day for two days consuming 60,000 gallons of fuel. One mission uses 1,500 gallons of fuel. At Camp Sather, 10,000 gallons of fuel are used per day for air conditioning and other electrical generation to support 1,000 airmen.

Thanks to Nathan Schock who alerted me to the post on Rhapsody in Green about the presentation.

Energy, EPIC, Ethanol, News

Energy Title of House Farm Bill

Cindy Zimmerman

The US House passed its version of the 2007 Farm Bill Friday by a vote of 231 to 191 – a vote largely along party lines on a bill that came out of the House agriculture committee as a bipartisan piece of legislation. Republican members of the committee withdrew their support for the bill when a tax increase on foreign owned businesses was added to pay for nutrition programs. House ag minority leader Bob Goodlatte led an unsuccessful attempt to have the bill sent back to committee to find more offsets for funding.

During a press conference last week, the chairman of the House Agriculture subcommittee on Conservation, Credit, Energy and Research said he the energy title of the bill includes a loan guarantee program of about $2 billion.

“Everyone says we’re too dependent on foreign energy in this country,” said Congressman Tim Holden (D-PA). “This bill allows us to take a giant step forward to take advantage of our agriculture and natural resources for cellulosic ethanol and biodiesel with this loan guarantee program.”

However, Agriculture Secretary Mike Johanns says all the money for cellulosic ethanol research in the House bill is discretionary funding, “which around here means you’ll never see that funding.” Johanns claims that the majority of the funding in the House bill energy title is set aside to buy sugar for ethanol production. “So taxpayers will be buying sugar at twice the world price and then selling it for ethanol.” Johanns says the administration is prepared to veto the farm bill if the final version turns out like the House bill.

The farm bill process is only just beginning. The Senate now must pass its own version of the bill, which is expected to be significantly different than the House version and then it will be on to a conference committee. The current bill expires at the end of September, but since the Senate will not even start work on it until after the August recess, a continuing resolution is likely to be passed to give Congress a few more months.

RFAMeanwhile, the Renewable Fuels Association welcomed House passage of the H.R. 2419, the “Farm, Nutrtion, and Bioenergy Act of 2007.” RFA President Bob Dinneen said in a statement, “We are at a crossroads in this country with respect to our energy future. We can continue on with the status quo and become more vulnerable to the whims of oil cartels around the world. Or, we can invest in American imagination and hard work and move down the path of a more stable, secure energy future. This farm bill clearly takes a step down the latter.” Most major ag organizations have also come out in support of the House bill.

Agribusiness, Biodiesel, Cellulosic, Energy, Ethanol, Government, News, RFA

Hydrogen-powered Portable Generator

John Davis

Trulite logoA Houston-based company is working on a briefcase-sized portable generator that runs on water… or more accurately, hydrogen.

Trulite’s KH4 takes water and turns it into hydrogen to put out 150-200 watts of power. Not quite enough for a house, but as this article on C/Net.com points out, it’s enough to recharge power tools or a laptop or even run a small appliance.

Trulite generatorA target audience for the device will be contractors, particularly ones who work on downtown skyscrapers. Power tools regularly sap their batteries.

To get around the problem, contractors either carry spare batteries, which can be expensive, or recharge them with gas generators. The fumes and noise of the gas generators, however, are often incompatible with downtown building requirements. Thus, Trulite hopes that contractors will opt to carry its unit instead.

Another handy application might be taking it along in the great outdoors to run a portable TV, so your generator doesn’t drown out the sounds of nature… just the sound of your TV will!

The fuel cell uses sodium hydride to seperate the hydrogen from the oxygen and then the sodium hydride stores the hydrogen safely.

Test units will be available soon, and the company plans to start selling them on the market in the spring of next year. They’re a little pricey at about $2,000 each (a lot more than a gas generator), but it could be the first big step into making them more mainstream… and eventually, less expensive.

Hydrogen

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