Ethanol 2012 Study

Cindy Zimmerman

E 2012What’s ahead on the road for ethanol? That’s what a new report will attempt to predict.

Representatives from agriculture, energy, public policy and technology are working on the Ethanol 2012 study, being spearheaded by consulting firm The Hale Group, according to a news release.

The Hale Group is working with Cambridge Energy Research Associates (CERA), which is led by global energy expert Dr. Daniel Yergin, former U.S. Secretary of Agriculture and U.S. Trade Ambassador Clayton Yeutter, and Dr. Bruce Dale of Michigan State University.

“Over the next five years, the U.S. corn-based ethanol industry is going to face major strategic challenges as it becomes a more mature industry given that the commodity markets remain volatile and the government is developing policies for renewable energy and climate change,” said Clayton Yeutter. “The Ethanol 2012 Study brings together a highly qualified group with the petroleum, agricultural, technology and policy expertise to develop winning strategies that respond to the challenges.”

According to the Ethanol 2012 website, the study is “designed to meet the strategic planning needs of current ethanol producers, companies that are considering entry into the industry, financial firms that have an investment in the ethanol industry, service providers to the ethanol industry, and governmental agencies.”

Ethanol, News

Oklahoma to Host Biofuels Conference

John Davis

Grow logoOklahoma Governor Brad Henry is hosting a conference on biofuels October 16-17th in Oklahoma City. More information is on the way but this web site www.growok.com is a start.

From the governor’s welcome:

Gov. HenryIt is my pleasure to invite you to attend to the Oklahoma Governor’s Conference on Biofuels.

For reasons of national security, economic well-being, concern for our environment and concern for our finite oil and gas resources, our country has embarked on a policy to develop alternative transportation fuels and free ourselves from dependence on imported foreign oil.

Henry points out that Oklahoma is uniquely placed to be a leader in the biofuels market with its prairie grass resources and refining capacity and infrastructure already in place.

This is the second annual biofuels conference for the state.

Biodiesel, Ethanol, News

Ethanol Key Topic at OAS Meeting

John Davis

OAS logoA showdown over ethanol is brewing at the Organization of American States’ General Assembly meeting this week in Panama. According to this story in the Washington (DC) Times, the U.S. and Brazil are pushing an OAS paper promoting looking for alternative fuel sources in the Western Hemisphere, more specifically, ethanol, which the Americans and Brazilians are producing in the billions of gallons:

OAS meetingIn a paper prepared to be delivered at the assembly, the OAS says that although the hemisphere is “endowed with abundant natural resources for energy production,” the bloc’s leaders should discuss alternatives to the region’s continuing dependency on fossil fuels.

In the case of the United States, it would mean reducing dependence on fuels originating in nations hostile to U.S. interests and promoting increased production of biofuels already widely used in countries such as Brazil, the world’s largest producer of sugar-based ethanol.

“The United States and Brazil are the world’s two largest biofuels producers, so cooperation is natural,” State Department spokesman on Latin American affairs, Eric Watnik, said in March. “Our goal is to advance global energy security by helping countries diversify their supply.”

Chavez-CastroNot surprisingly, on the other side of the issue is the U.S.-hating Hugo Chavez, leader of oil-rich Venezuela. He’s joined by Cuba’s Fidel Castro, and not too surprisingly, Mexico… which has great oil reserves of its own:

Increased demand for corn used to produce the starch-based version of ethanol made in North America has driven corn prices higher in recent months, subsequently raising Mexico’s tortilla prices.

Venezuela is the world’s sixth-largest exporter of oil, and the country’s anti-American president, Hugo Chavez, has been using its oil wealth to win the support of countries in the region. In the long run, the world’s reduced dependence on oil could lower Venezuela’s influence on international politics.

Ethanol, News

Finding A Place to Fill Up

John Davis

EPICOn empty in East Lansing? Runnin’ low near the Alamo? The Ethanol Promotion and Information Council or EPIC has an E85 station finder on its web site www.drivingethanol.org.

Playing around with it a bit, I was able to easily find a station on the northeast side of San Antonio… on the way to New Braunfels, home to German brats and Schlitterbaun, a local waterpark. Check out the map below (the station is the red triangle):
E85 Map

Of course, if you’re traveling a bit further, you can expand the search settings to show an entire state or region:
Texas E85 Map

If you run on another alternative fuel, the locator can find electric, hydrogen, compressed natural gas, propane, biodiesel, and more stations as well. Check it out at www.drivingethanol.org!

EPIC, Ethanol, News

Biofuel Pipelines Proposed

John Davis

Congs. Boswell & MoranCongress is considering some proposals that would fund studies to figure out if pipelines that would carry ethanol and biodiesel are viable options. Wallaces Farmer reports Democrat Iowa Congressman Leonard Boswell, and Republican Cong. Jerry Moran of Kansas have introduced the bill:

The Ethanol Infrastructure Expansion Act, H.R. 2426, would direct the U.S. Secretary of Energy to fund studies on the feasibility of constructing a dedicated ethanol pipeline and to study the technical factors that prevent the transportation of ethanol in existing pipelines.

“As the ethanol and biodiesel industries continue to expand, we need to examine practical and economical ways to transport ethanol across the country,” says Boswell. “This bill is a necessary first step in bringing ethanol to the rest of the country. We need to break our bondage to OPEC and if we are going to produce more biofuel to do that, we need to get that ethanol and biodiesel to the motoring public as efficiently as possible.”

This is an important bill for Congress to consider. “Ethanol and biodiesel are currently moved primarily by railcars and by truck. But the rapid growth in production of ethanol and also biodiesel production makes a study and determination of additional transportation options critical,” he says.

If the bill is passed, the Department of Energy would also have to study if existing pipelines could be modified to carry the biofuels. The measure is similar to a bill introduced earlier this year by Senators Tom Harkin (D-IA) and Richard Lugar (R-IN) (see Cindy’s March 13th post).

Biodiesel, Ethanol

Ethanol: The Hot Rod Fuel of the Future

John Davis

Gale Banks with Gale Banks EngineeringNearly 50 years in the business of engine performance should be enough experience to earn one the title of “Auto Performance Expert.” Gale Banks with Gale Banks Engineering started his business in 1958. His business, which consists of designing engines for various factories, manufacturing his own line of engines and developing after market performance products, is just a year shy of that half-century milestone; and that experience was expertise enough to earn him a spot on a video segment with Jay Leno. When Chuck dropped by Jay’s garage last month, he spoke with Gale just before the taping about ethanol, the E85 ethanol fuel blend and what the food stock-based fuel means for performance:

[audio:http://www.zimmcomm.biz/audio/jay-leno-garage-banks.mp3] 3:36 mp3

Audio, Car Makers, E85, Ethanol, Flex Fuel Vehicles, News, Promotion

VeraSun Production Feeds EPIC Promotion

John Davis

EPIC Marketing Director Melissa UllerichVeraSun Energy, one of the country’s largest producers of ethanol, aims to expand its business as consumers become more educated about the fuel. Marketing Director Melissa Ullerich said VeraSun Energy supplies E85 fuel to more than 90 locations. Melissa said with plants in Aurora, SD, Fort Dodge, IA and Charles City, IA the company produces about 340 million gallons of ethanol. She adds that the company has three more plants under development in Welcome, MN, Heartly IA and Reynolds, IN – or, she said, otherwise known as BioTown.

Chuck caught up with Melissa at the 91st Indianapolis 500. She was attending “The Greatest Spectacle in Racing” as a board member of the Ethanol Promotion and Information Council. She tells Chuck why EPIC is important to VeraSun Energy:

[audio:http://www.zimmcomm.biz/audio/indy-07-ullerich.mp3] 2:07 mp3

Audio, BIO, E85, EPIC, Ethanol, Indy Racing, News, Production, Promotion, Racing

Clean Diesel, Bosch Ink Deal

John Davis

Clean DieselClean energy innovator Clean Diesel Technologies, Inc has struck a deal with Stuttgart, Germany-based Bosch GmbH, a leading global supplier in the areas of automotive and industrial technology, customer goods and building technology, to allow Bosch access to key patents developed by Clean Diesel for selective catalytic reduction (SCR).

Dr. Walter CopanDr. Walter Copan, Executive Vice President and Chief Technology Officer of Clean Diesel (you might remember my May 24th interview with him) says SCR is the preferred method of reducing oxides of nitrogen (NOX). He says Bosch applying Clean Diesel’s ideas to their motor supplies will mean a low-cost method of fixing biofuels problems with NOX.

“The unfortunate downside of biodiesel has been seen in some of the older engines (with biodiesel increasing the formations of NOX),” said Copan. “With the NOX control technology, such as SCR, there’s full compatibility with a high-quality biodiesel or biomass liquid fuels.”

Copan adds this new technology will mean more engines will be able to run more efficiently and cleanly.

“The SCR technology is very fuel flexible. Ultimately the goal is to have a system that is robust, that provides overall good fuel efficiency, and delivers the kind of environmental performance with a view to overall sustainability in the years to come.”

You can hear more of my interview with Dr. Copan below. More information about Clean Diesel Technologies is available at www.cdti.com.

[audio:http://www.zimmcomm.biz/audio/CopanBoschIntvw.mp3]

Biodiesel

Food Price Inflation

Cindy Zimmerman

JohannsEthanol continues to get more than its fair share of blame for higher food prices, but Agriculture Secretary Mike Johanns urges people to look at the whole picture.

Speaking to farm broadcasters in Washington D.C. recently, Johanns said that he hates to pick out one item in the food chain and start blaming it for rising costs. “Look at how much diesel fuel has gone up recently,” he said. “What’s a significant piece of the food chain? It’s moving that commodity from farm to table.”

The latest forecast for food price increases this year is between three and four percent. Beef and poultry are up already over 4.5% from last year. But the largest increases are in fresh fruits and vegetables, which are up six to eight percent over 2006. According to USDA economist Ephraim Leibtag, “Part of this is due to weather damage, but also we just have seen higher production costs overall and higher costs of transportation coming into the system more fully.”

So, when it comes to reports that increased ethanol production is the cause of increased food prices, Johanns said, “Again, I would just urge people to be very cautious about this story. It tends to be an interesting story but it may not have the significance that one would argue. We need to tell the whole story.”

Listen to Johanns’ comments here: [audio:http://www.zimmcomm.biz/audio/dc-johanns.mp3] 1:20 mp3

Audio, Ethanol, News

SW Missouri Biofuel Hub

John Davis

It looks like a 50-million-gallon-a-year ethanol plant is in the works at a site near Nevada, Missouri… just up the road from $90 million plant that will make soy-based biodiesel.

Officials with Ozark Ethanol LLC recently met with the Vernon County Commission and citizens to discuss the plant. According to this AP story in the Springfield News-Leader, not much officially is being said about the plant except a general location of where it will be built in Southwest Missouri:

But Vernon County Presiding Commissioner Bonnie McCord said the location being discussed is near the intersection of Missouri 43 and U.S. 54, which is just down the road from the soybean-diesel plant now being built by a company called Prairie Pride.

For both companies, location is part of the attraction.

MCGAVernon County lies in west-central Missouri on the Kansas border, with roads and rail lines that would easily connect the plants with farmers in both states supplying the corn and soybeans.
But it’s not just location, location, location that’s driving the two plants:

Gary Marshall, chief executive officer with the Missouri Corn Growers Association, said four ethanol plants are operating in Missouri right now, and five are under construction.

“The demand is very, very strong and continues to be very strong,” he said of ethanol.

Biodiesel, Ethanol, News