Promoting Alt Fuel in Atlanta

Chuck Zimmerman

Poultry & Feed Expo BoothIt seems like everywhere I go I find 25X’25. No one was home here in this booth at the combined International Poultry Expo and International Feed Expo going on in Atlanta, GA but I got a picture anyway.

I’m here for reasons other than renewable fuel but you can’t escape it. For poultry producers what’s happening in the renewable fuels business has some concerns as you’ll hear in my next post with an economist.

I’ll be here for a couple days so I’m sure I’ll find something more of interest. For example, I know there’s a seminar on the schedule specifically on ethanol. I’m going to try to attend.

Agribusiness

China Stepping up Biofuels Development

John Davis

As China’s economy continues to grow, the country’s consumption of oil grows with it. And with the Chinese recognizing there aren’t unlimited resources of petroleum out there, they seem to be embracing more biofuels… in particular biodiesel. Renewable Energy Access has reprinted a story talking about the development of a new rapeseed, which the Ministry of Agriculture reports, has an record-setting oil content of 54.7%. Officials believe the new seed could produce as much oil for mixing in biodiesel as the equivilant of 1.5 times that of the country’s largest oil field.

In addition, some woody plants… such as the Chinese pistachio… are being seen as having a great potential in biodiesel production. The Chinese pistachio grows in 11 provinces throughout the country.

But the Chinese are having some issues. According to the article, the government is having a tough time tracking the actual number of biodiesel facilities out there.

Behind the enthusiasm in China’s bustling biodiesel development, however, is disorder in both production and marketing, said Wang Zhongying, director of the Energy Research Institute of the Center for Renewable Energy Development in Beijing. “Driven by the potential profits from biodiesel, many private investors just go ahead with production and marketing without any reference to the government,” he said.

As a result, it is not even known how many biodiesel factories exactly exist in China, said Zhu Ming, dean of the Academy of Planning and Design under the Ministry of Agriculture. Also lacking are standards and regulations for the biodiesel industry, according to Professor Tan Tianwei of the Biological Sciences and Technology Department of Beijing University of Chemical Technology.

And there’s debate in the country over the use of land for oil production that could go to Europe as opposed to the same land being used for food production in China. Officials do point out that the Chinese pistachio does not compete for food land.

Biodiesel, International

European Ethanol, Biodiesel Stocks Get Boost from Bush

John Davis

It’s not just American alternative fuels seeing a boost from President Bush’s State of the Union speech last night when he pledged to reduce U.S. gasoline consumption by 20 percent in the next 10 years. Check out this story from Dow Jones posted on CattleNetwork.com:

Michael McNamara, London-based senior equities analyst for Jefferies International, said European stocks are indirectly benefiting from “improved sentiment“ in Bush’s State of the Union address late Tuesday. “The specific mention of ethanol and biodiesel is good news,“ McNamara said.

“But we generally consume ethanol in the market where we produce it, so while this is good for sentiment, it’s more important for E.U. member states to mandate increased biodiesel or ethanol use.“

The U.S. energy proposal calls on Congress to require the use of 35 billion gallons of ethanol and other alternative fuels such as biodiesel by 2017. The ethanol would be in gasoline blends of 10% to 85%.

“It’s not certain what exact measures will be put in place and the financial impact they will have, but the largest market in the world is laying out its desire to reduce gasoline consumption by 20%,“ McNamara said.

“It is clearly a sign that G-8 governments are increasingly getting behind the idea of alternative fuel sources.“ Poul Ruben Andersen, biofuels marketing director for Denmark-based Novozymes A/S (NZYM-B.KO), said the U.S. policy won’t change much in the short term, but in the long term he said he expects it to support the business.

The article goes on to say that Anderson’s company’s stocks earlier today saw a 3% rise, and other European alternative fuels stocks seem to be seeing similar increases.

Might give a few people pause to think more about local domestic fuels investments, such as Blackhawk Fuels, which is having investor meetings this week (see my earlier post).

Biodiesel, Ethanol, Government, International, News

Investors in Blackhawk Fuels in Northern Illinois Meet This Week

John Davis

Blackhawk BiofuelsInvestors in a new, 30-million gallon a year biodiesel plant near Freeport, Illinois are meeting this week. Blackhawk Biofuels LLC will hold investor meetings today at 1 p.m. in Pontiac, Ill. and in Joliet, Ill. at 7:00 tonight. There will also be meetings tomorrow (Jan. 25th) in Dekalb, Ill. at 1 p.m. and Freeport, Ill. at 7 p.m. A couple of more meetings are scheduled for next month (click here for complete schedule and maps).

“After months of planning, we are pleased to begin selling units of our offering,“ stated Ron Mapes, chair of the Blackhawk Biofuels Board of Managers. “We invite everyone interested in a renewable fuels investment to attend an investor information meeting to learn more about biodiesel and our project.”

Total expected project cost for Blackhawk Biofuels is forecast to be $62 million with half coming from local investment and the balance through debt financing. The business plan calls for 30 employees with an expected annual payroll of $1.5 million.

Blackhawk Biofuels is registered to sell units in Illinois, Wisconsin, Iowa, and Indiana.

Biodiesel

More Industry Reaction

Cindy Zimmerman

ACE The ethanol industry could hardly be more pleased with the president’s call for increased use of the fuel in his State of the Union address.

In a news release, the American Coalition for Ethanol praised the president “for setting visionary goals for ethanol in his State of the Union address and the bipartisan leaders in Congress who are working to implement long-term plans for the increased production and use of homegrown renewable fuels.”

“President Bush’s call to increase the use of renewable and alternative fuels, including ethanol, to 35 billion gallons by 2017 sends a very powerful signal that an ambitious yet attainable Renewable Fuels Standard goal is the ideal strategy to strengthen energy security and independence in the U.S.,” said Brian Jennings, ACE Executive Vice President. “An RFS level of 35 billion gallons by 2017 is consistent with ACE’s call for an RFS of 60 billion gallons by 2030, and we are pleased that this and other important aspects of ACE’s legislative plan have already been included in S. 23, the Biofuels Security Act introduced in the 110th Congress by Senators Harkin and Lugar.”

Ethanol, News

Indy Sets Pace For Domestic Fuel

Cindy Zimmerman

Indy Car Series With its switch to 100 percent fuel-grade ethanol for the 2007 season, the Indy Car Series is already leading in the country’s race to reducing dependence on foreign oil, as called for by President Bush in his State of the Union address.

“The IndyCar Series shares the President’s commitment to energy security,” said Brian Barnhart, president and chief operating officer of the Indy Racing League, in a news release. “We accept the challenge of making these goals a reality.”E

“The partnership between the IndyCar Series and the ethanol industry exemplifies the spirit of energy independence, American ingenuity and innovation,” said Tom Slunecka, executive director of the Ethanol Promotion and Information Council.

The series will hold its first Open Test of the season at Daytona International Speedway Jan. 31-Feb. 1, 2007 where for the first time all IndyCar Series cars will run on the 100 percent fuel-grade ethanol. The 17-race IndyCar Series season opens March 24, 2007 under the lights at Homestead-Miami Speedway.

EPIC, Ethanol, Indy Racing, News

Domestic Fuel Industry Reaction

Cindy Zimmerman

Some biofuel organizations were reacting to the president’s State of the Union address even before it was given.RFA

A statement from Renewable Fuels Association president Bob Dinneen was emailed to the media over two hours before the speech.

“Recognizing the potential of our nation’s ethanol industry, President Bush used the unique forum of the State of the Union Address to elevate the significance of ethanol and renewable fuels to our nation’s energy future by calling for 35 billion gallons of alternative fuel use by 2017,” said Dinneen. “With consistent and focused policies, this is an eminently achievable goal. It will stimulate new investment in cellulosic ethanol technologies and drive market opportunities for ethanol beyond existing blend levels. It is a goal that makes sense for America.”

RFA will hold a telephone press conference Wednesday morning to address the president’s remarks with reporters.

NBB

The National Biodiesel Board issued a release immediately following the address.

“We are glad to see that the President’s Twenty in Ten plan includes strong steps toward renewable energy, energy conservation and diversification, and carbon reduction,” said Joe Jobe, CEO of the National Biodiesel Board. “We hope Congress will work with the Administration in a bipartisan way to enact this kind of bold new energy policy for the good of all Americans.”

Biodiesel, Ethanol, Government, News

President Calls For Increasing Alternative Fuel Supply

Cindy Zimmerman

2007As anticipated, President George W. Bush devoted a significant portion of his 2007 State of the Union address Tuesday evening to energy.

“For too long our nation has been dependent on foreign oil,” said President Bush. “It’s in our vital interest to diversify America’s energy supply. The way forward is through technology.”

The audience applauded seven times during the four minutes devoted to energy issues in the president’s address, including once when he mentioned biodiesel and once for ethanol.

“We need to press on with battery research for plug-in and hybrid vehicles and expand the use of clean diesel vehicles and biodiesel fuel. (applause) We must continue investing in new methods of producing ethanol (applause) using everything from wood chips to grasses to agricultural wastes.”

The president called on Congress to reduce gasoline use in the United States by 20 percent in the next decade.

“To reach this goal we must increase the supply of alternative fuels by setting a mandatory fuel standard to require 35 billion gallons of renewable and alternative fuels in 2017 – and that is nearly five times the current target.” That statement was met by a standing ovation led by a jubilant Senator Chuck Grassley from the number one ethanol producing state of Iowa.

Bush noted that achieving these goals will dramatically reduce dependence on foreign oil but not eliminate it, so he also asked that Congress to double the current capacity of the strategic petroleum reserve.

And while he briefly mentioned confronting the “serious challenge of global climate change,” the president did not specifically ask Americans to make lifestyle changes to conserve fuel as news sources anticipated prior to the address.

In the Democratic response to the President’s address, Senator Jim Webb of Virginia began by saying that energy independence was one area where the Democrats agreed with the administration and that they looked forward to working with him on that issue.

Listen to the energy portion of the President’s address: Listen To MP3 President Bush
(4 min MP3)

Audio, Biodiesel, Energy, Ethanol, Government, News

Terror-Free Fill-Up

Cindy Zimmerman

The Terror-Free Oil Initiative is planning to open the nation’s first “terror free” gas station in Omaha.

Terror Free According to the Associated Press and numerous television news reports, the Terror-Free Oil station in west Omaha will sell gas from oil companies that do not do business in the Middle East.

The station is scheduled to open in February and organization officials say more Terror-Free Oil stations are planned.

According to the Terror-Free Oil Initiative website, the Florida-based organization is dedicated to encouraging Americans to buy gasoline originating from countries that do not export or finance terrorism and “are also looking into creating a healthy debate concerning alternate methods of fuel production and consumption.”

News

Corn Growers, Farm Aid Team Up for Renewable Energy Workshops

John Davis

Farm AidThe American Corn Growers Association has received some grants from Farm Aid to put on a series of workshops across the country on producing and using ethanol, biodiesel, and wind energy. The Farm Aid money has been given to the Corn Growers to put on the workshops in more than half a dozen states on a variety of subjects:

* Overview of Bio-Diesel Production, Acceptance and Utilization,
* Overview of Pre-Feasibility Study Guide for Farmer-Owned Ethanol Plants,
* Wind Energy – New Potentials for Rural Communities,
* Overview of Federal Programs Available for Renewable Energy Production, and
* How Renewable Energy Production Can Be an Essential Component to Better Farm Policy.

“Our goal is to ensure we improve our continuing endeavor to communicate, educate and advocate the opportunities, challenges and possibilities for energy production on U.S. family farms,” said ACGA President Keith Bolin. “This will include issues relating to bio-diesel, ethanol, bio-mass, wind and other farm based energy producing possibilities.”

“Farm Aid is proud to support so many creative efforts around the country to expand opportunities for family farmers,” said Farm Aid President Willie Nelson. “We’re all working together to support good food from family farms.”

Stay tuned for dates and locations.

Biodiesel, Ethanol, News, Wind