More Domestic Fuel Use Forecast

Cindy Zimmerman December 6, 2006

In the latest Long Term Energy Outlook report issued by the Energy Information Administration, higher fossil fuel prices and public policy will generate a further shift toward alternative energy in the coming years.

According to an AP story, U.S. ethanol use is expected to grow to 11.2 billion gallons in 2012 from 4 billion gallons in 2005. By 2030, ethanol use could reach 14.6 billion gallons, or about 8 percent of the nation’s total gasoline consumption.

The projection for 2012 exceeds the 7.5 billion requirement of the Renewable Fuel Standard enacted as part of the Energy Policy Act of 2005, EIA noted.

The administration forecasts a 7 percent surge in the use of alternative sources for distillate fuels by 2030, mostly on greater consumption of biodiesel. Increased biodiesel usage is another component of the Energy Policy Act. Biodiesel use is expected to reach $400 million gallons by 2030, while the use of distillate from coal-to-liquid is projected to reach 5.7 billion gallons.

Read more from AP.

Read the full report from EIA.

Biodiesel, Ethanol, News

Analyst Thinks Ethanol Forecasts Are Low

Cindy Zimmerman December 6, 2006

An energy industry analyst believes the government is underestimating the ethanol demand outlook.

The Energy Information Administration’s annual energy outlook, issued Tuesday, projected that ethanol demand will more than double from today’s level to 11.2 billion gallons in 2012.

According to an Associated Press report, Chris Shaw of the global financial firm UBS says that may be too low because, if all announced plants are built, U.S. ethanol capacity could reach 12 billion gallons as soon as 2008. He believes “this would translate to a similar level of demand for 2009, as we see supply opening up new sources of demand.”

Read more.

Ethanol, News

Ethanol Plant Breaks Ground in Washington State

Cindy Zimmerman December 6, 2006

Washington state is on track for it’s first ethanol plant.

US Ethanol of Vancouver has announced that subsidiary Northwest Renewable broke ground Wednesday on a 55 million gallon per year ethanol production facility in Longview, Wash. When completed, the plant will be the first large-scale facility in the state of Washington to produce ethanol, an alternative fuel typically made from corn.

According to US Ethanol, the plant is expected to begin producation in June 2008.

“We are excited to break ground on this facility, as this is a major step forward in bringing an alternative fuel source to the Pacific Northwest and lessening our country’s dependence on foreign oil,” said Elie Makad, chairman of US Ethanol and Makad Corp., the Longview site’s developer. “Our integrated approach to ethanol production and distribution will ultimately bring locally produced US Ethanol™ branded products, including E85 fuel, direct to consumers along the Interstate 5 corridor.”

Ethanol, Facilities, News

Surveys and Studies on Value of Ethanol

Cindy Zimmerman December 6, 2006

Several recent surveys and studies relating to ethanol provide some insight into what consumers think about ethanol, how biotechnology can help fill the demand for both food and fuel, and how domestic sources of energy like ethanol can help revitalize the rural economy. This “Fill Up Feel Good” podcast discusses the results of these studies.

The “Fill up, Feel Good” podcast is available to download by subscription (see our sidebar link) or you can listen to it by clicking here. (5:30 MP3 File)

The Fill Up, Feel Good theme music is “Tribute to Joe Satriani” by Alan Renkl, thanks to the Podsafe Music Network.

“Fill up, Feel Good” is sponsored by the Ethanol Promotion and Information Council.

Audio, EPIC, Ethanol, Fill Up Feel Good

Pacific Biodiesel Opens Plant #10

Cindy Zimmerman December 5, 2006

Maui-based Pacific Biodiesel opened its 10th biodiesel plant this week in the northern California town of Gonzales.

According to a news release, Pacific Biodiesel built the 10,000-square foot plant for California-based Energy Alternative Solutions Inc., which is planning at least six more plants in California within the next five years.

The Gonzales plant will eventually be able to pump about 3 million gallons of biodiesel per year. The fuel will be made from a combination of virgin vegetable oils and used cooking grease taken from local resources such as crops and restaurants.

According to the Pacific Biodiesel website, the company has built plants in Oahu and Maui, Oregon, California, Nevada, Texas, Pennsylvania, Maryland and Japan.

Wind Powers Ethanol Plant

Cindy Zimmerman December 5, 2006

John Deere Wind Energy is helping to power up a farmer-owned ethanol plant in Winnebago, Minnesota.

According to Agriculture Online, Corn Plus Cooperative is entering into a co-development relationship with John Deere to harness wind energy to help power their plant. When the wind farm is up and running at capacity, approximately 45% of the electric energy demand for the plant will be supplied by wind energy.

Cattlemen Urge Free Market For Ethanol

Cindy Zimmerman December 5, 2006

The Nebraska Cattlemen are all for ethanol, but not so much for mandates.

The organization adopted resolutions addressing ethanol markets and mandates at it’s recent annual meeting, according to a news release.

One resolution supports a transition to a market based approach for the usage and production of ethanol and opposes any additional federal or state mandates for ethanol usage and/or production.

Nebraska Cattlemen has worked closely with corn and ethanol organizations to foster mutually beneficial programs and policies. All three industries recognize the interdependence. “We’ve participated in their meetings and visa versa,” NC President Jay Wolf said. “We have a good relationship with them and we’ve all committed to maintain that for the benefit of each of the memberships and for Nebraska in general.”

With regard to national energy policy, Nebraska Cattlemen favors the implementation of a variable import to prevent the price of oil, and its derivatives from dropping below long-term equilibrium prices.

Read more from the Nebraska Cattlemen.

Ethanol

Presidential Advisors Support Biofuels

Cindy Zimmerman December 5, 2006

The President’s Council of Advisors for Science and Technology (PCAST) has issued a report on the role of technology and emerging companies in helping to supply our nation’s energy needs.

According to a release from the Renewable Fuels Association, the report concluded that biofuels like ethanol are a vital and readily available solution to help address America’s dependence on foreign oil and that continued federal involvement is important to the sustained growth of the industry.

“Biofuels offer a clear, near-term opportunity to reduce the Nation’s dependence on oil,” the report noted. “With potential improvements in crop production and biorefineries, cellulosic biofuels could replace a significant percentage of the Nation’s gasoline use by 2030.”

Included in PCAST’s proposals for the federal government regarding increasing biofuels production and use are:
-Increase the use of E10 (10% ethanol blends) as well as encourage the use of higher percentage ethanol blends.
-Support the commercial development of cellulosic ethanol technology.
-Identify lands that would be suitable for energy crop production, i.e. cellulosic material.
-Encourage automakers to increase the percentage of flex fuel vehicles (FFV) manufactured each year.

RFA notes that PCAST also proposes a suspension of the credit offset associated with imported ethanol, which they disagree with.

Read the full report in pdf form here.

Biodiesel, Ethanol, News

Project Golden Switchgrass

Cindy Zimmerman December 4, 2006

A University of Rhode Island plant geneticist has launched “Project Golden Switchgrass” to develop “the variety of enhanced switchgrass that everyone needs” as an alternative crop to produce ethanol.

According to a URI release, Albert Kausch is a world leader in developing transgenic grasses, having spent 20 years genetically modifying turf grasses, rice and corn. He is also an expert on “gene confinement” who is working to create a switchgrass that does not flower or reproduce, thereby ensuring that the genetically modified organisms do not escape into the environment and affect wild switchgrass.

Kausch is now genetically engineering switchgrass that is both sterile and resistant to herbicides, and he has a long list of other traits he hopes to improve as well, including drought tolerance, salt tolerance and cold tolerance. He expects to have test plots of the genetically modified plants on the URI campus within two years, and he hopes the first varieties will be in commercial production by 2011.

Cellulosic, Ethanol, News

Prairie Ethanol Open For Business

Cindy Zimmerman December 4, 2006

Approximately 1,800 people attended Prairie Ethanol’s grand opening celebration for the 60 million gallone per year ethanol production facility Saturday near Mitchell, SD.

According to a news release, the event included a Vanguard Squadron fly-over and a program featuring political dignitaries, industry representatives and company officials.

U.S. Senator John Thune expressed his excitement about being part of the ongoing effort to advance renewable energy. “This plant is a new dawn for farming in South Dakota and a new dawn for our rural economy,” he stated. “The ethanol industry is transforming this state like never before.”

Prairie Ethanol, which will utilize Broin Companies‘ patent-pending BPX™ raw starch hydrolysis process, is one of the most technologically advanced and environmentally friendly ethanol production facilities in the nation.