Ethanol and Farmers on NASCAR Track

Chuck Zimmerman

It’s NASCAR race weekend in Joliet, IL at Chicagoland Speedway. My home today and tomorrow. I’m joining the Illinois Corn Growers and Family Farmers for two races. First up will be tonight’s NASCAR Camping World Truck Series American Ethanol 225.

Then on Sunday we’ve got the second annual STP 300 which is part of the NASCAR Nationwide Series. The Sprint Cup Series has the weekend off.

Family Farmers cannot be missed at the event, with a 17,000 square foot exhibit area onsite to be complemented with both a Nationwide Series and Camping World Truck Series “Family Farmers” entry. This work is aimed at improving the trust between consumers and family farmers. In corn checkoff funded research, it was revealed that most influential people in the Chicago area think that corporations own most of the farms in Illinois. This erodes the base of support among that same group for issues that are important to farmers regarding regulations, food safety, transportation, and trade.

I’ll be hanging out with Kenny Wallace and Illinois Corn Growers this afternoon. Kenny will be driving the #99 Family Farmers car in the STP 300.

“Chicagoland Speedway is a great track for me. We finished seventh in this race last year with our Family Farmers Toyota Camry. Since they closed Gateway International Raceway in 2010, Chicago has become sort of like a home track for me since it is only about four hours away from my hometown of St. Louis. Not only that, but it is the home of Family Farmers and American Ethanol, so I want to run well for them and I feel confident that we will run well.”

So, look for photos and interviews later today and tomorrow from an Illinois NASCAR weekend. See you from the track.

American Ethanol, biofuels, corn, NASCAR

U.S. Court of Appeals Rules in Favor of RFS

Joanna Schroeder

The U.S. Court of Appeals for the District of Columbia Circuit has rejected a petition by the Chicken Council challenging the rule making of the Environmental Protection Agency (EPA) regarding the Renewable Fuels Standard (RFS2). Upon filing of the petition, the ethanol industry took action. Today, Growth Energy CEO Tom Buis along with Renewable Fuels Association (RFA) President and CEO Bob Dinneen issued a joint statement on behalf of the industry.

“Today’s decision is nothing short of a victory for American ethanol producers and renewable fuel advocates. This was the last of many challenges to the RFS2 rulemaking and each one was rejected. With the Court denying this latest challenge, they have vindicated the rulemaking process of the RFS2.  The RFS is arguably the nation’s most effective energy policy.  It has spurred the development of a domestic biofuels industry that is creating hundreds of thousands of jobs that cannot be outsourced.  In addition, it is helping to decrease the nation’s reliance on imported oil and thus reducing prices at the pump. 

Moreover, the RFS is the nation’s first effort at meaningfully reducing harmful greenhouse gas emissions from motor vehicles.  As the Court ruling demonstrates, the charges that anti-biofuel lobbies are leveling against ethanol simply do not hold up under scrutiny.  We look forward to working with EPA, the Department of Agriculture, and Congress to ensure the integrity of the RFS is maintained and the ambitious goals set within are achieved.”

biofuels, Ethanol, Growth Energy, RFA

Ball State Begins Final Phase of Geothermal System

Joanna Schroeder

Ball State is the home of the country’s largest geothermal system. This week the university began the second and final phase of converting to a geothermal ground-source heat pump system. The project began in 2009 and the first phase was completed earlier this year and now provides heating and cooling to nearly half the campus. Upon completion, the conversion should save Ball State $2 million a year.

The geothermal system is a vertical, closed-loop district system that uses only fresh water. It works by using the heat stored in ground water and thermal masses. A geothermal heat pump uses the Earth as either a heat source, when operating in heating mode, or a heat sink, when operating in cooling mode.

“When costs began to escalate for the installation of a new fossil fuel burning boiler, the university began to evaluate other renewable energy options,” said Jim Lowe, director of engineering, construction and operations. “This led to the decision to convert the campus to a more efficient geothermal-based heating and cooling system.”

Phase 2 includes installation of 780 of the remaining 1,800 boreholes in a field on the south area of campus. Construction will continue throughout 2013-2014 and will include a new District Energy Station South containing two 2,500-ton heat pump chillers and a hot water loop around the south portion of campus. The system will then connect to all buildings on campus — eventually providing heating and cooling to 5.5 million square feet.

Electricity, Energy, Geothermal

Wind O&M Market Forecast to Double

Joanna Schroeder

The wind operations and maintenance services (O&M) market is forecast to nearly double by 2025 from approximately $3 billion in 2012 to nearly $6 billion in 2025. Also according to a recent report from IHS Emerging Energy Research on U.S. Wind O&M Strategies, O&M is expected to account for over one-third of total capital expenditures over the next decade.

In March, the U.S. Senate voted against extending the wind Production Tax Credit (PTC) beyond 2012. This has caused uncertainty in the market and prospects for new wind farms are uncertain. This also has an impact on operational wind farms and owners are now putting more focus on increasing revenue.

The study focuses on four O&M areas: market player profiles; market environment; service segmentation and costs analysis; and market forecasts.

These areas, along with other key issues in the wind industry, will be addressed during the 4th Annual Optimizing Wind Power O&M conference slated for September 25-26, 2012 in Chicago. The event has been updated based on attendee feedback and this year there will be case studies and interactive roundtable discussions.

Electricity, Energy, Wind

Consumers in Kansas Embrace E15

Joanna Schroeder

Consumers in Kansas have embraced E15. The Zarco 66 “Oasis” station in Lawrence became the first retail gas station in the country to offer E15 under the waiver granted by the U.S. Environmental Protection Agency (EPA), and consumers are buying the renewable fuel blend.

On July 18, 2012, Zarco 66 Station owner Scott Zaremba held a pump promotion for two hours where E15 was sold for $1.15 per gallon. During the promotion, 3,000 gallons of E15 were sold. The ethanol blend can be used in vehicles and light duty trucks beginning with the manufacturer year of 2001. In the U.S., nearly 60 percent of the cars and trucks on the road can use E15.

Bob Dinneen, President and CEO of RFA noted that E15 represents a new choice at the pump introducing additional competition in the fuel market. “As a result of increased ethanol use, drivers are paying less at the pump, rural America is seeing better economic opportunities, and the nation is weakening its dependence on imported oil.”

Given current market conditions, E15 will sell less than E10 and gasoline not containing ethanol. The Zarco 66 “Oasis” is selling E15 for two cents less than E10.

Dinneen added, “Anti-biofuel critics can scream until they are blue in the face, but as the drivers in Lawrence are learning, E15 is safe and viable fuel choice.

blends, Ethanol, Ethanol News, RFA

Ethanol Detractors Call for End of RFS

Joanna Schroeder

A coalition of livestock and poultry groups continue to attack the veracity of the Renewable Fuels Standard (RFS) that mandates the amount of renewable fuels that must be used each year in the transportation fuel supply. The new campaign has been launched in tandem with a new economic study conducted by Farm Econ LLC focusing on the impact of corn ethanol production on food prices as well as the commodity price volatility.

Ironically, the study was released at the same time that the U.S. Department of Agriculture (UDSA) released a new corn harvest report estimating that at least 75 percent of the corn crop is growing in drought conditions.

“While the groups paying for this study feel entitled to cheap corn forever and are shamelessly exploiting the drought as an excuse to roll back the RFS, there is no credible evidence to justify reducing or waiving it,” said Brian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE).

“The fact is the RFS is helping reduce dependence on foreign oil, moderating gas prices, and securing jobs in rural America. Both USDA Secretary Vilsack and U.S. Senator Stabenow, chair of the Senate Agriculture Committee have indicated the drought is not an excuse to waive or repeal the RFS,” added Jennings.

USDA Secretary Tom Vilsack said in a press conference earlier this week that what really drives food prices are energy costs. He also stressed the importance of ethanol production and the need to continue to focus on the “all of the above” approach to producing more energy.

Tom Buis, CEO of Growth Energy noted that ethanol detractors are “conveniently ignoring that in 2011 ethanol used only 3 percent of the global grain supply.” He added, “…the cost of energy plays a substantial role in food prices. Factors related to energy, and in particular, oil prices, such as the transportation, storage, processing and packaging of goods are the true culprits of rising food costs. Additionally, marketing expenses add to the rising costs of food. For every dollar spent at the grocery store, $.84 cents can be attributed to marketing, with a mere $.03 cents representing the corn value.

Despite the lobbying against the RFS, ethanol industry supporters maintain that they can both feed the world and fuel America.

ACE, biofuels, Ethanol, Growth Energy

Researchers: LCFS Would Help America

Joanna Schroeder

During a bipartisan briefing on Capitol Hill, researchers from six institutions advocated that adopting a national Low Carbon Fuel Standard (LCFS) would be a positive step for America. Renewable fuels, they said, will be cleaner, cheaper and “Made in America”. This consensus by the group of researchers was met after conducting an extensive series of peer-reviewed LCFS studies. The research will be published in The Energy Policy Journal’s special issue on Low Carbon Fuel Policy over the next several months.

“A national Low Carbon Fuel Standard is a promising framework to help solve the transportation energy challenges that have eluded us for several decades,” said Dr. Daniel Sperling, director of the Institute of Transportation Studies at the University of California, Davis, one of the participating institutions of the National Low Carbon Fuel Standard Project. “Technologically, an LCFS is very doable. And it can help us address the complex choices with conventional oil, shale gas, oil sands, biofuels, and electric vehicles.”

The way that a LCFS would work is through setting a common target for carbon intensity, which would reduce the amount of carbon in transportation fuels. Energy companies would have to meet the carbon intensity level but could individually decide how to meet that goal. Companies could explore such things as biofuels or hydrogen fuels. In addition, companies could buy and sell carbon credits from companies producing low-carbon fuels.

Dr. Jonathan Rubin, professor of Economics at the University of Maine said, “An LCFS encourages innovation and diversity by harnessing market forces. “These reports provide practical policy recommendations, and are designed to inject scientific information into the national conversation on a Low Carbon Fuel Standard.”

Yet not everyone agrees that an LCFS would be a positive move for the country. The Consumer Energy Alliance (CEA) has publicly come out against any national LCFS policies citing other studies that found such a move would cost millions of Americans to lose jobs, double gasoline prices and raise greenhouse gas emissions.Read More

biofuels, Environment, Hydrogen, Opinion

Biofuels Play Major Role in Great Green Fleet Exercise

John Davis

Biofuels are playing a significant role in the biggest maritime exercise in the world. About 450,000 gallons of biofuels made from non-food stocks have been used to fuel the ships and aircraft, known as the “Great Green Fleet,” taking part in the U.S. Navy’s and allied nation’s Rim of the Pacific Exercise (RIMPAC).

“Yesterday, off the coast of Hawaii, was a great day for the Navy and a great day for America. It marked some serious steps to take us on the road toward energy security and energy independence,” says Secretary of the Navy Ray Mabus. He notes advanced biofuels were seamlessly integrated into the operations, which included typical fighter jet flying and refuelings and ship-to-ship underway refuelings. “Absolutely no modifications were required or made to any of the engines that were burning biofuels.”

Secretary of Agriculture Tom Vilsack echoes those sentiments in this demonstration of U.S. military might and leadership. “It’s not just leadership to make us more secure from a national security or energy security standpoint. It’s also leadership for economic opportunities in rural areas.” Vilsack adds this use of American-made biofuels plays right into the bio-based economy, providing 400,000 jobs in the U.S., expected to go even higher when the full Renewable Fuels Standard is met.

Deputy Assistant to the President for Energy and Climate Change Heather Zichal adds that this use of biofuels demonstrates to the world that the U.S. Navy is leading the way. “[The Navy] is sending a clear message that we cannot keep doing what we have done in the past. We cannot be timid about embracing new forms of energy, like biofuels, that have the potential to strengthen our energy security and reduce the military’s dependence on oil.”

Listen to the full press conference here: Press Conference on use of biofuels during RIMPAC

Audio, biofuels, biojet fuel, Government, USDA

Battle Over RFS Heats Up With Drought

Cindy Zimmerman

With 78 percent of the corn crop suffering from drought, livestock and poultry groups are renewing calls for changing the ethanol requirements in the Renewable Fuel Standard (RFS2).

During a press conference today sponsored by livestock and poultry interests, Cong. Bob Goodlatte (R-VA) said he has introduced two bills – one to eliminate the RFS and one to reform it. “Additionally, I strongly believe that given the drought conditions gripping our nation, the administrator of the EPA should reduce the RFS mandate for this year and do it now,” he said.

Listen to Goodlatte’s comments here: Cong. Goodlatte on RFS

Supporters of the RFS point to ethanol stocks and the Renewable Identification Numbers (RINs) system built into the law for just such a natural disaster. “Strong supplies of ethanol in storage, an oversupply of 2.5 billion Renewable Identification Numbers (RINs), and a smaller gasoline market that reduces the actual 2012 RFS requirement to just approximately 13.04 billion gallons are all indicators that the RFS will work in 2012 and 2013,” said Matt Hartwig with the Renewable Fuels Association. “To be certain, conditions facing American farmers are challenging. However, the market will act to ration corn demand and the RIN mechanism of the RFS will provide a cushion for refiners and other obligated parties to comply with RFS requirements.”

“When it comes to the Renewable Fuel Standard for ethanol and other biofuels, now is not the time for changes. It’s working. The RFS is revitalizing rural America, reducing our dependence on foreign fuel and reducing the cost of gasoline. Making changes to the RFS now would only ensure that consumers suffer due to significantly higher fuel prices,” said National Corn Growers Association president Garry Niemeyer. “Given the challenges of the drought and suffering of all farmers, now more than ever, U.S. agriculture needs to pull together. NCGA will continue to help lead the way in trying to unite, rather than divide, American agriculture.”

Audio, Ethanol, Ethanol News, Government, NCGA, RFA

RFA Continues Sturgis Sponsorship

Joanna Schroeder

The 72nd Annual Sturgis Motorcycle Rally in Sturgis, SD is August 6-12 and the Renewable Fuels Association (RFA) is continuing its partnership with the Legendary Buffalo Chip. This is an opportunity for the organization to promote the use of ethanol to motorcyclists around the country. Often ethanol is mischaracterized as a problem for motorcycle engines.

During the event, RFA staff and volunteers wearing “Ethanol: Fueled with Pride” t-shirts will hand out educational and promotional materials. A promotional trailer will be located inside the Legendary Buffalo Chip amphitheater where nearly 100,000 people attend concerts each night.

For the first time this year attendees will have the opportunity to fuel their bikes for free during two events. The “Free Fuel Happy Hours” are sponsored by RFA, Kansas Corn Commission and the South Dakota Corn Growers. Motorcyclists will be able to fill their tank, free of charge, if they have a Buffalo Chip wrist band. The Free Fuel Happy Hours will be on Wednesday, August 8th and Thursday, August 9th next to The Crossroads at the Buffalo Chip from 4 pm – 6 pm CDT.

“The Chip is excited to once again partner with RFA to highlight the benefits of using ethanol fuel,” said Rod Woodruff, Owner of the Legendary Buffalo Chip. “The Buffalo Chip leads by example; every drop of unleaded fuel we use here contains ethanol. With events like the ‘Free Fuel Happy Hour’ and Fueled with Pride give-away items, thousands of attendees who travel cross country to be at Sturgis will leave knowing that ethanol is a safe option for their motorcycles and they have a choice in the fuel they put in their engines.”

There will be more events to attend as part of the promotion. To learn more visit ChooseEthanol.com.

biofuels, Ethanol, RFA