Bush Talks Energy in Missouri

Cindy Zimmerman

President Bush talked about his energy initiatives, domestic fuel and alternative fuel vehicles during a visit to a Ford Motor assembly plant in Kansas City, Missouri on Tuesday.

“The reason I’ve come is I want to highlight an important initiative for the country, and that is to promote technologies so we are less reliant upon foreign sources of oil. And the best way to become less reliant on foreign sources of oil is to manufacture automobiles that will use either less gasoline, or different kinds of fuels,” said Bush.

Bush CarsThe president talked about his goal of reducing America’s gasoline consumption by 20 percent over the next 10 years and how hybrid cars and flex-fuel vehicles can help achieve that goal.

“You’re producing flex-fuel vehicles here, where somebody can decide to fill up with ethanol, or they can decide to fill up with gasoline, their choice. In turns out that Henry Ford — Model T was one of the first flex-fuel vehicles. I didn’t realize that until I came here — but that he had the vision of having the Model T run either on gasoline or ethanol. Isn’t that interesting?”

Read the president’s entire address at the Ford plant from the White House website
.

Energy, Ethanol, Flex Fuel Vehicles, News

New Ethanol Plants Planned

Cindy Zimmerman

Biofuel Energy Denver-based BioFuel Energy has finalized locations for three new ethanol production facilities.

According to a press release, the company is currently constructing its first two 115 million gallon a year ethanol plants in Wood River, Nebraska and Fairmont, Minnesota. Both are being built by TIC in association with Delta-T Corporation and are expected to be operational in the first quarter of 2008.

The Company indicated that the sites for its next three 115 million gallon a year facilities are in Alta, Iowa; Gilman, Illinois; and Atchison, Kansas. An alternate site is being prepared in Litchfield, Illinois.

Ethanol, Facilities, News

Rome Going Green

John Davis

Rome city bus The City of Rome, Italy could convert all of its 2800 buses to biodiesel by the end of 2008.

According to this article on Checkbiotech.org, a test of 200 buses will start the program:

Importantly, the accord covers not just the purchasing of the biodesel end-product but other stages of the supply chain including the growing of oilseed crops from which biodeisel is produced.

Farmers close to Rome have agreed to lift crop area devoted to rapeseed, soy and sunflowers from a few hundred hectares to 10,000 hectares, and to 20,000 if needed, to meet demand.

If fully implemented, the program could save 40,000 tons of carbon dioxide and emissions.

Biodiesel, International

When Pigs Fly!

John Davis

OK, I couldn’t resist that headline… or this story. It seems that North Carolina State University engineers have developed technology that can turn almost any oil… from hog lard to vegetable oil… into jet fuel.

According to an NC State news release, the technology is called Centia… a derivative of the Latin “crudus potentia,” or “green power”:

Dr. William Roberts, professor of mechanical and aerospace engineering and director of the Applied Energy Research Laboratory at NC State, says that besides being “100 percent green,” the new technology has some key advantages.

“We can take virtually any lipid-based feedstock, or raw material with a fat source – including what is perceived as low-quality feedstock like cooking grease – and turn it into virtually any fuel,” Roberts says. “Using low-quality feedstock is typically 30 percent less costly than using corn or canola oils to make fuel.”

NC State Wolf And it burns cleaner… good for the environment. Plus, NC State is using the glycerol produced from the biodiesel production to power the process. Since it has to work at high altitudes at temperatures as low as -70 degrees, the fuel works at extremely low temperatures.

Guess it’s appropriate that flying pig technology is being developed by a Wolf Pack!

Biodiesel

Ethanol Pioneer Passes Away

Cindy Zimmerman

Badger State EthanolThe CEO of Wisconsin’s Badger State Ethanol died on Sunday of an apparent heart attack at the age of 71.

John Malchine was a co-founder of the ethanol plant and served as chairman of its board since May 2000. The facility began production in November 2002. He was also one of the original board members of the Ethanol Promotion and Information Council.

The Journal-Times of Racine, near Malchine’s hometown of Norway, has a good article about him.

Domestic Fuel reporter Chuck Zimmerman interviewed Malchine last year at the Indy 500.

EPIC, Ethanol, News

Woody Biomass Grants

Cindy Zimmerman

USDA The US Department of Agriculture has awarded $6.2 million in grants to more than two dozen small businesses and community groups to develop innovative uses for woody biomass, including renewable energy and new products, from national forests.

The grants will help create markets for small-diameter material and low-valued trees removed from forest restoration activities, such as reducing hazardous fuels, handling insect and diseased conditions, or treating forestlands impacted by catastrophic weather.

The Forest Service, a USDA agency, selected 26 small businesses and community groups as grant recipients. Awarded grants ranged from nearly $125,000 to $250,000. According to requirements, all 26 recipients provided at least 20 percent of the total project cost. Non-federal matching funds ranged from $62,500 to more than $2 million per project, for a total of almost $12 million.

A listing of all grant recipients can be found on USDA’s website.

Cellulosic, Government, News

Ethanol Wins in Sebring

Cindy Zimmerman

Sebring Ethanol-enriched fuel was a clear winner at the 55th running of the 12 Hours of Sebring, the first time the renewable fuel was used in an endurance race format. The LMP2 class was won by Andretti Green Racing featuring the Acura ARX, while Corvette Racing took a first in the GT1 class. For the first time ever, both cars used a 10 percent ethanol-enriched blend.

In January, the Ethanol Promotion and Information Council (EPIC) along with the American Le Mans Series, announced that E10 would become, “the official ethanol-enriched fuel” of the series.

“Ethanol has once again demonstrated its performance pedigree in the most demanding environment in motorsports,” said Tom Slunecka, executive director of EPIC. “Ethanol demand has been spurred, in part, by consumers’ growing confidence of ethanol. Nothing demonstrates the performance benefits of ethanol better than high tech race cars under the lights at Sebring.”

The next round of the American Le Mans Series is the Acura Sports Car Challenge of St. Petersburg. The race will start at 5:05 p.m. ET on Saturday, March 31.

EPIC, Ethanol, News, Racing

Renewable Fuels Research Center Dedicted to Sen. Lugar

Cindy Zimmerman

Dick LugarA newly created renewable energy center at IUPUI has been named after Indiana Senator Richard Lugar.

In a press release, IUPUI Chancellor Charles R. Bantz said the campus wanted to name the center for Indiana’s senior United States Senator because of Lugar’s steadfast leadership on renewable energy issues.

“Developments at the federal level underscore the growing awareness that renewable energy will play a leading role in ensuring U.S. energy independence,” Bantz said. “The creation of the Richard G. Lugar Renewable Energy Center is a direct response to that recognition. Senator Lugar’s strong support for renewable energy research has had an immeasurable influence on our nation’s collective thinking about the need for energy security.”

During dedication ceremonies on Monday, Senator Lugar had some strong words for critics of ethanol, according to Indiana’s Hoosier Ag Today radio network.

“Eighty percent of the world’s oil supply is controlled by governments. Oil companies and the forces of supply and demand do not determine the price of oil.” He said this situation poses a security threat for the United States, “We need to understand that we are talking about the ability of our country to continue on in the lifestyle to which we are accustomed.”

Ethanol, News

Historical Perspective on Feed Prices

Cindy Zimmerman

Tufts UniversityA new study by the Global Development and Environment Institute at Tufts University in Maryland offers some interesting perspective on the issue of feed prices. In the report “Industrial Livestock Companies’ Gains from Low Feed Prices, (1997-2005)” the authors state that, “With rising demand for corn-based ethanol, representatives of many of the nation’s leading meat companies have expressed concern over the rising price of animal feed, which has increased significantly with the price increases for its two principal components, corn and soybeans.”

Tufts UniversityFeed prices have indeed increased significantly. As feed costs generally account for more than half of operating costs for industrial operations, higher prices can have an important impact on the bottom line for these companies. So too can low prices. Any discussion of today’s high prices should take into account the extent to which these same firms have benefited from many years of feed that was priced well below what it cost to produce. In the nine years that followed the passage of the 1996 Farm Bill, 1997-2005, corn was priced 23% below average production costs, while soybean prices were 15% below farmers’ costs. As a result, feed prices were an estimated 21% below production costs for poultry and 26% below costs for the hog industry. We estimate cumulative savings to the broiler chicken industry from below-cost feed in those years to be $11.25 billion, while industrial hog operations saved an estimated $8.5 billion. The leading firms gained a great deal during those years from U.S. agricultural policies that helped lower the prices for many agricultural commodities.

Ethanol, News