Vilsack Announces 106 Renewable Energy Projects

John Davis

Agriculture Secretary Tom Vilsack today announced 106 projects in 29 states, Guam and Puerto Rico have been selected for funding to make renewable energy and energy efficiency improvements. Money for the projects comes from the USDA Rural Development’s Rural Energy for America Program (REAP), authorized by the 2008 Farm Bill.

“The Obama Administration is helping agricultural producers and rural small business owners across the country reduce their energy costs and consumption,” Vilsack said. “This is part of the President’s ‘all-of-the-above’ energy strategy, which involves expanding support for traditional as well as alternative energy sources. Stable energy costs create an environment for sustainable job growth in rural America.”

The release highlighted projects such as a Washington County, Iowa wind turbine on a farm and an anaerobic digester in Wisconsin that will produce enough power for 420 homes each year. You can see the complete list of projects here.

REAP provides grants and loan guarantees for agricultural producers and rural small businesses to reduce energy consumption and costs, use renewable energy technologies in their operations and conduct feasibility studies for renewable energy projects. USDA has an active portfolio of more than $170 billion in loans and loan guarantees.

Government, USDA

Ethanol Industry Urges EPA to Deny RFS Waiver

John Davis

Two state governors have reportedly made an official request to the EPA to waive the RFS for corn ethanol, and the ethanol industry is wasting no time saying it should be denied. According to this Reuters article, North Carolina Gov. Bev Perdue and Arkansas Gov. Mike Beebe have asked the EPA for a waiver to the Renewable Fuels Standard (RFS), but officials at the Renewable Fuels Association (RFA) and Growth Energy have called on the government to reject those requests.

In a statement, the RFA says while the drought has stressed agricultural areas, it is not severe enough for the EPA to grant such a waiver:

“The RFS already includes a number of compliance options allowing great flexibility for oil refiners to meet their obligations under the program. The market is already taking advantage of these flexibilities as ethanol production has slowed 15% since the beginning of the year in response to market signals.

“To be clear, a waiver of the RFS will not provide the relief meat and livestock producers seek nor will it make it rain on dry corn fields and pastures. What waiving the RFS would do is send chilling signals to investors in new biofuel technologies, threaten to force gas prices higher than they already are, and dramatically lower the availability of ethanol feed products on which the livestock industry is growing to rely.”

Growth Energy responded saying the marketplace will straighten out any imbalance between corn supply and demand:

“Furthermore, the governors continue to use misinformation saying that corn ethanol uses 40 percent of the corn crop – we do not. In fact, only 16 percent of the corn acres harvested goes to ethanol production. Just one-third of the kernel is used for ethanol, with all the protein, fiber and oil being returned to the food chain in the form of a high protein animal feed, which replaces corn and soybean meal and is less expensive.

“To blame the ethanol industry due to a lack of rain does not make any sense. These governors are asking American family grain farmers who are already suffering crop loss to also take a further loss by limiting their market through a domestic grain embargo, benefiting large corporate food companies by lining their pockets at the expense of the family farmer, and our nation’s pursuit of energy independence.”Read More

corn, Ethanol, Ethanol News, Government, RFA, RFS

RFA: RFS Waiver Brings No Lower Prices for Anyone

John Davis

Officials with the Renewable Fuels Association (RFA) say if the EPA grants a waiver to the Renewable Fuels Standard (RFS), it would not bring the hoped-for reduction in feed prices for livestock producers and lower prices for consumers at the grocery stores. The calls for the waiver grew louder after last Friday’s USDA crop report showed a 13 percent reduction in this year’s expected corn crop due to the drought.

During a webinar today, the RFA’s VP of Research and Analysis Geoff Cooper looked at the impact of the drought on the corn crop and what it means for ethanol production and the RFS. He pointed out that some groups, particularly the meat lobby, are trying to turn this to their advantage. “These are the same groups that have been gunning for the RFS for a number of years and attempted to strike while the iron is hot,” Cooper explained. But he says their arguments that the RFS is too inflexible and the ethanol industry won’t reduce its demand for corn in proportion to the reduction in the crop just don’t hold water. “We’ve seen corn consumption by the ethanol industry drop significantly in recent months,” adding that the record surplus supply stocks of ethanol and RINs have helped the industry still maintain its end of the RFS. “The flexibility in the RFS and the responsiveness of the market itself make a waiver completely unnecessary.”

Cooper added that consumers won’t see any significant price drops in their grocery bills if the RFS is waived. He highlighted recent research that shows the waiver would produce only a 4.6 percent reduction in corn prices at the commodity level, which translates to even less for consumers when you consider that only 14 cents of every food dollar spent goes toward the actual commodity… transportation costs, support, marketing, etc. make up the other 86 cents. And he noted that consumers would end up paying a lot more for gasoline as ethanol is credited with lowering gas prices $.84-$1.07 per gallon. “Really what’s driving higher gas prices, as you would expect, are higher crude oil prices and some of the problems in the refining sector.”

Cooper concluded saying the bottom line is the ethanol industry and the market are responding and sharing in the tighter corn stocks, there is enough flexibility in the RFS to make it through a leaner year like this one, and an RFS waiver won’t reduce prices for anyone.

You can listen to the entire webinar here (it’s a little long at just over an hour but well worth a listen):
RFA Webinar on RFS Waiver Follow along with the slide presentation here.

Audio, corn, Ethanol, Ethanol News, Government, RFA, RFS

Farm Foundation to Discuss RFS Waiver

John Davis

As I mentioned in the previous post, talk about waiving the Renewable Fuels Standard for ethanol continues on. This time, our friends from the Farm Foundation will be hosting a web conference, Thursday, August 16, 2012 at 10 a.m. CDT. Three Purdue University economists will take part in the free conference, discussing the impact of waiving the RFS, especially in light of how hard the drought has hit the nation’s corn crop. You can register for it here.

Purdue University economists Wally Tyner, Farzad Taheripour and Christopher Hurt have completed an analysis of a potential waiver and what it could mean for the ethanol industry and the price of corn. Their findings will be presented at Thursday’s web conference.

“As was the case in 2008, when rhetoric in the food-versus-fuel debate rose with the prices of corn and oil, the drought and high temperatures of 2012 are pushing corn and soybean prices to record levels, and the food vs. fuel debate is once again heated,” says Farm Foundation, NFP President Neil Conklin. “Now, as then, Farm Foundation and Purdue University are not about fueling these fires. Our shared mission is to be a catalyst for sound public policy by providing objective information to foster deeper understanding of the complex issues before our food and agriculture system today.”

Farm Foundation officials say the Purdue economists’ current analysis builds on years of work, including a series of three Farm Foundation publications, “What’s Driving Food Prices,” published in July 2008, March 2009 and July 2011.

corn, Ethanol, Ethanol News, Farm Foundation

RFA to Hold Webinar on Corn Crop, Ethanol & RFS

John Davis

A lot of talk over the weekend, as the USDA put out its crop report with the expected 13 percent drop in corn production due to the drought. The folks at the Renewable Fuels Association hope to give some clarity to the situation tomorrow morning (August 14th) when they host a webinar talking about the relationship between the crop, ethanol production, and the Renewable Fuels Standard (RFS).

The webinar starts at 11 a.m. EDT, and will feature RFA Vice President Geoff Cooper providing analysis into the issue, as well as highlighting the flexibility of the RFS and how market-based data demonstrates no waiver in 2012 is warranted.

You need to register in advance by contacting Taryn Morgan at tmorgan@ethanolrfa.org.

corn, Ethanol, Ethanol News, RFA, RFS

Biodiesel Powers Truck to Pulling Win

John Davis

The power of biodiesel was on display in Wisconsin for all to see as Herb Blaser’s 2011 Dodge Cummins Diesel 3500 roared to a win at the 2012 Almena Fun Days Truck Pull.

Blaser, a coordinator at SunPower Biodiesel, ran his truck on his company’s own blend of the green fuel.

This makes a repeat win for Blaser, who took first in the 2011 tractor pulling event. That tractor was also fueled by SunPower Biodiesel.

This year, the competition was stiff with nineteen trucks competing. “There were a lot of other trucks that blew a great deal of black smoke, mine hardly had any and none of it was black!” comments Blaser.

Sunpower Biodiesel’s 3 million gallon a year facility in Cumberland, WI proudly displays its affection for biodiesel, with a big LED moving sign in front of their production facility that reads, “Green is power, ask the Hulk.” The company also manages two retail fueling stations in Cumberland, WI and Duluth, MN.

Biodiesel

INEOS Bio Receives EPA Registration

Joanna Schroeder

The first cellulosic plant using non-food waste materials in the country has received Parts 79 and 80 registration from the Environmental Protection Agency (EPA): INEOS New Planet BioEnergy (INPB).  The news came as the facility of the Indian River BioEnergy Center (Center) nears production. The biorefinery will use vegetative, yard waste and agricultural waste to produce cellulosic ethanol and is scheduled to be commissioned in the next few weeks.

When the Center is in full production, it will produce 8 million gallons of advanced bioethanol and 6 megawatts of renewable power.  INEOS Bio, the parent company of the project, has plans to run municipal solid waste at the Center after initial start-up is complete.

“We have completed this new facility on schedule and on budget and look forward to further advancing this bioenergy technology and making it commercially available around the world,” said Peter Williams, CEO of INEOS Bio and Chairman of INPB. “Building more facilities and licensing this technology globally provides a new platform for waste disposal while providing energy security, local jobs and local bioenergy. “New technologies like this will also move us further away from, avoid, and eventually change the food-vs-fuel debate.”

Once the biorefinery is in production, it will be one of the first to produce cellulosic ethanol under the Renewable Fuel Standard (RFS). The facility will feature INEOS Bio’s feedstock flexible BioEnergy technology that uses a combination of gasification and fermentation technology to turn various types of waste materials into fuel and electricity.

advanced biofuels, bioenergy, Cellulosic, Electricity, Ethanol

Senate Candidate Urges Ethanol Industry to Fight

Cindy Zimmerman

Former Nebraska governor and senator and candidate for the Senate once again, Bob Kerrey, urged the crowd at the American Coalition for Ethanol conference Friday to fight for the industry.

“The only way you beat these guys is by fighting,” Kerrey said about the opponents of ethanol. “With the RFS, you cannot win this thing by being kind and gentle.”

Kerrey also urged Congress to get a farm bill passed as soon as possible. “The House needs to take this bill up and pass it,” he said. “The idea of an ad hoc disaster bill is a mistake. It’s not going to be good for agriculture, it’s not going to be good for ethanol, it’s not going to be good for the long term future of the American economy.”

Kerrey is the Democratic candidate to replace Sen. Ben Nelson (D-NE), facing Republican Deb Fisher who was invited to the ACE conference but was unable to attend.

Listen to Kerrey’s remarks here: Bob Kerrey of Nebraska remarks at ACE

Listen to interview with Kerrey here: Bob Kerrey Interview
2012 ACE Conference Photo Album

ACE, Audio, Ethanol, Ethanol News, Government

Austin Explores Solar Industry

Joanna Schroeder

Those living in Austin, Texas can get a inside look at the solar industry during a forum and open house hosted by ImagineSolar. On August 25, 2012 from 9:00 am – 1:00 pm CDT at ImagineSolar’s training facility located at 4000 Caven Road, Austin, TX 78744, community members can see new solar products and services from various solar companies, learn about new courses (attendees are eligible for a $50 discount on one course) and tour ImagineSolar’s solar field lab.

Several solar companies who are looking for local talent will be on hand at the event including Ideal Power Converters, Schletter, Greenbelt Solar, Lighthouse Solar, and more. Several solar associations will also be at the event including Texas Green Network (TGN), Renewable Energy Student Association (RESA), Texas Renewable Energy Industry Association (TREIA), and Sierra Club, Austin.

Austin innovator Michael Kuhn, who is also the founder of ImagineSolar, has been active in public policy for the solar industry since the 1990s. Today he is working with other local solar entrepreneurs to develop breakthrough models for local solar development. The goal is to accelerate solar adoption in the community. Today, current capacity for non-utility-scale solar is around 6 MW and the hope is to reach 300 MW over the next 10 years.

During the event, Kuhn will speak on this work and what to expect in the next several years from the Austin solar industry. “I remember when you could count on your two hands the number of people working in solar in Austin ten years ago,” said Kuhn, “Today we count over 615 people with jobs in the solar industry. We continue to endeavor to ensure that the City of Austin remains a leader for clean energy. Austin’s support for local solar is an engine for job creation.”

For more information about solar opportunities in Austin, download the free eBooks “Career Opportunities in the Solar Industry” and “Career Opportunities in the Smart Grid Industry.”

Electricity, Energy, Solar

Most Positive ACE Conference Ever

Cindy Zimmerman

Despite a drought that is lowering the corn crop and causing ethanol plant shutdowns, American Coalition for Ethanol Executive Vice President Brian Jennings thinks the organization’s 25th annual conference last week was the most positive ever.

“We’re really encouraged and enthused about how the conference went,” said Jennings. “We know things are tough out there but we ended this conference on the most positive note I think we’ve ever ended a conference.”

Jennings was especially pleased with the strong support from Agriculture Secretary Tom Vilsack for both ethanol and the Renewable Fuel Standard and they agree with Vilsack’s view of keeping the RFS in place despite a lowered corn crop. “We won’t know how many bushels are produced until harvest,” he said. “It is premature for the calls that have been made to waive the RFS.”

Listen to my wrap-up interview with Brian Jennings here: ACE EVP Brian Jennings
2012 ACE Conference Photo Album

During the conference, three new board members were elected.

  • Paul Enstad, Board of Governors Chairman for Granite Falls Energy, LLC, a 60 million-gallon-per-year (MGY) ethanol producer in Granite Falls, MN
  • Doug Punke, CEO of Renewable Products Marketing Group (RPMG), an ethanol marketing company in Shakopee, MN
  • John Christenson has joined the ACE board representing Christianson and Associates

In addition, four board members were re-elected.

  • Ron Alverson, Wentworth, South Dakota, representing Dakota Ethanol
  • David Gillen,  White Lake, South Dakota, representing South Dakota Corn Utilization Council
  • Wallie Hardie, Fairmount, North Dakota, representing North Dakota Corn Growers Association
  • Brian Wilcox, Columbus, Nebraska, representing Nebraska Public Power District
ACE, Audio, Ethanol, Ethanol News, USDA