Importance of Fuel Quality Management

Cindy Zimmerman

Maintaining the quality of fuel stored commercially or on the farm has a lot to do with making sure the storage equipment is keeping the fuel clean and dry.

That’s why GROWMARK’s energy division stresses good storage tank maintenance to farmers. “Engine manufacturers as far back as the 1930s said the number one thing to do with all fuel is to keep the fuel dry and clean,” said Ken Reichert, GROWMARK Refined and Renewable Fuels Sales Manager. “That’s even more true now and critically true for today’s engines.”

Reichert notes that today’s diesel engines in particular have fuel injection systems that utilize very tight tolerance on the injectors that are electronically controlled. “So they just can’t tolerate any foreign material, oxidized fuel or water, getting into the system,” he said.

GROWMARK has found that there are lots of on-farm and commercial storage tanks that are decades old, which can lead to contaminants that naturally occur over time, but Reichert says the increasing use of biodiesel blends does not require any type of special handling. “In general, biodiesel is the same of any other fuel as far as managing quality, protecting it from dirt and water,” he said.

Reichert says GROWMARK and the FS System recently introduced the latest formulation of their flagship fuel, Dieselex Gold, which deals with the tighter injection tolerances and updates the oxidation inhibitor, something that is especially important with biodiesel blends. “Biodiesel has a little less oxidative stability than regular diesel,” said Reichert. Dieselex Gold also has a demulsifier to help fuel shed out of water faster, which helps if water gets in a tank.

Listen to my interview with Ken Reichert here: Interview with Ken Reichert, GROWMARK

Audio, Biodiesel, GROWMARK

Death of Ethanol-Killing Amendment Welcomed

John Davis

A measure that would have killed ethanol and other renewable energy programs under the Farm Bill was stopped today in Washington, D.C. Senator Pat Toomey’s amendment to the Farm Bill that would have repealed the Biorefinery Assistance Program went down to defeat in a bipartisan 63-33 count. The vote was welcomed by Growth Energy CEO, Tom Buis:

“The Biorefinery Assistance Program is instrumental in the production of the next generation of ethanol. This program is in place to foster innovation and American excellence. By rejecting this amendment, the Senate has clearly shown they understand the importance of advanced biofuels and the benefits of cleaner air, job creation and energy security.

“American made ethanol is critical to reducing our addiction to foreign oil and vital, if we are serious about energy independence. Not only does ethanol contribute to our energy security, but its production spurs economic growth, creating jobs and revitalize areas that are lacking in economic opportunity.”

Buis urged House members to follow the Senate’s lead in supporting renewable energy measures in the Farm Bill.

Ethanol, Ethanol News, Government, Growth Energy

Will You Buy 15% Ethanol for Your Vehicle?

Melissa Sandfort

Our latest ZimmPoll asked the question, “Does Your Business Have an Interest in Pinterest?”

Our poll results: Thirty-one percent said Yes, part of our marketing plan or just figuring it out; thirty-one percent said No, no application for us; and thirty-eight percent knew nothing about Pinterest.

Our new ZimmPoll is now live and asks the question, “Will you buy E15 for your MY2001 or later car if it’s offered?” The EPA has given its approval for the first retailers to sell 15% ethanol blended fuel. E15 is a legal fuel for sale to cars, pickups and SUVs made since 2001. Here’s some more background on E15. Sales could start this week in Iowa, Illinois and/or Kansas. What do you think?

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

ZimmPoll

G20 Blasted for Not Lowering Oil Subsidies

John Davis

As the G20 summit wraps up in Mexico and many of the members head off to the United Nations Conference on Sustainable Development in Rio de Janeiro, Brazil, the group is being blasted for its failure to reduce the amount of subsidies for crude oil. This press release from the Global Renewable Fuels Alliance (GRFA) says a new Oil Change International report shows that oil subsidies are expected to double to $660 billion by 2020:

“It is not surprising that the G20 has been unsuccessful in reducing fossil fuel subsidies when 9 months ago the IEA stated that oil subsidies were set to more that double in only a decade’s time,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance.

“The GRFA has repeatedly called on G20 leaders to shift their policy focus from subsidizing oil consumption towards developing biofuel – friendly policies that are proven to reduce our crippling reliance on fossil fuels. Currently, according to the Institute for Energy Research, oil subsidies completely dwarf any economic incentives to promote renewable fuels – this must change” stated Mr. Baker.

“The failure to reduce oil subsidies highlights the stranglehold oil companies have on our domestic energy policies. The G20 needs to do more to eliminate these staggering subsidies to the wealthiest industry on the planet,” added Mr. Baker.

The press release goes on to say that G20 nations have been more focused on changing their definitions of subsidies than their policies towards them.

Government, International, Oil

Poor Market Closes Valero Nebraska Ethanol Plant

John Davis

High prices for corn and low margins for ethanol have forced Valero to temporarily close its Albion, Nebraska ethanol plant. But as you can see from this statement I just received this morning from Valero spokesman Bill Day, company officials expect the plant to be back up and running soon:

Yesterday morning the Valero Renewables-Albion ethanol plant temporarily halted production due to poor market conditions. We will restart production when margins improve, expected to be well before the harvest. At this point Albion is the only plant among Valero Renewables’ 10 ethanol plants that has halted production, but we continue to closely monitor market conditions throughout the Valero Renewables system. All employees at Albion remain on the payroll and will maintain the plant to be ready to restart when conditions improve.

Valero is not alone in its problems with tight margins for ethanol in Nebraska. This Reuters article says that last week that Nedak Ethanol LLC will also temporarily close its 44-million-gallon-per-year ethanol plant in Atkinson, Nebraska. The news comes as USDA reports corn supplies will be at a 16-year low by the end of the summer.

Ethanol, Ethanol News

Brazil Boasts Successful Biofuels Flight

Joanna Schroeder

Amyris, Inc. provided a renewable jet fuel blend derived from Brazilian sugarcane to Azul Brazilian Airlines who boasted a successful test flight. The Embraer E195 jet took flight from Campinas Viracopos Airport, flew over Rio De Janeiro, where the U.N. Conference for Sustainable Development (RIO +20), and landed at Rio’s Santos Dumont Airport.

Known as Azul+Verde (“a greener blue” in Portuguese), this project began in November 2009 with the goal of developing a cleaner, greener fuel as an alternative to fossil fuels.

“Azul’s commitment to reducing our dependency on volatile petroleum products goes beyond reducing our costs. The main objective is to innovate in our service offerings, using the best technologies to reduce our carbon footprint as well as raise awareness among our customers that they are not just choosing an airline that is merely concerned about the environment but is taking steps to preserve it,” said Flavio Costa, Chief Operating Officer of Azul Airlines.

A lifecycle analysis and sustainability study developed by a Brazilian think-tank, Institute for International Trade Negotiations (ICONE), indicates that the Amyris renewable jet fuel could reduce greenhouse gas emissions up to 82%, when compared to convention fossil-derived jet fuel.

“Amyris’s renewable jet fuel has been designed to be compliant with Jet A/A-1 fuel specifications. To that end, we have successfully undertaken a series of tests that measure its performance,” said John Melo, President & Chief Executive Officer of Amyris. “This demonstration flight caps a major milestone in our jet fuel program and allow us to pursue our certification and commercialization goals,” Melo concluded.

advanced biofuels, biojet fuel

Growth Energy CEO Talks Fuels, Engines & Ethanol

John Davis

Figuring out how to solve the energy challenges of today and the future was the topic of the the “Next Generation Engines and Fuels Forum,” and, no surprise, Tom Buis, the CEO of Growth Energy… a group that promotes ethanol and the people who produce it… was part of the discussion of the importance of renewable fuel and ethanol:

“The energy challenges we face as a nation are complex, and as we move forward, we need to look to combine the best performance possible between fuels and vehicles that will meet the upcoming CAFÉ standards, while at the same time acting as responsible stewards to our environment. To that end, all stakeholders, from those that produce fuel and engines must work in a collaborative manner in the development of the next generation of fuel and vehicles,” stated Buis.

Buis added that designing engines to operate on higher blends of ethanol is critical for the ethanol and engine industries.

“If the invested parties work in a uniform, transparent and predictable manner, we can easily address the growing demand for an abundant and reliable source of energy for the future.”

Growth Energy

Study: Solar Power Would Lower Texans’ Energy Bills

John Davis

A new study shows that adding solar capacity to the Texas electrical grid would lower electricity prices for customers in the Lone Star State. This press release from the Solar Energy Industries Association says an analysis from the Brattle Group energy consultancy explains how solar photovoltaic (PV) systems would impact the rates:

Their report concludes that adding photovoltaic solar to the Texas electricity grid in the summer of 2011 could have saved customers an average of $155 to $281 per megawatt hour (MWh) and that avoiding fuel, operations and maintenance costs associated with fossil fuels plans could have saved customers an additional $52 per MWh. Taken together, the total customer benefits of adding solar PV to the Texas grid was valued at more than $520 million.

Pat Wood, former chairman of the Public Utility Commission of Texas and of the Federal Energy Regulatory Commission, said solar is a natural fit for Texas’ energy capacity problems because solar electricity production peaks during afternoon hours when summer electricity demand is highest.

“Texas needs more on-peak capacity,” Wood said. “Solar delivers on peak, it doesn’t use water and it doesn’t create any smog pollution. It is increasingly affordable, competing favorably with other peak-of-the-day resources.”

Carrie Cullen Hitt, Vice President of State Affairs for the Solar Energy Industries Association, said the double benefit of lower electricity costs and increased reliability makes solar a clear choice for the state.

“This study shows that not only can solar energy help lower costs for Texans, but that adding solar capacity helps address the state’s more urgent crisis of potential rolling blackouts during the hot summer months,” Hitt said. “The state’s electricity grid was pushed to the brink of failure last summer. As Texas leaders address ways to mitigate this risk and the state’s energy future, solar should be an important part of their plans.”

The report goes on to point out that last year’s unusually hot summer last year forced six conservation alerts because of record electricity usage in the state, and similar problems could come up this summer.

Solar, Utilities

RFA Partners with Talker Likis to Educate about Ethanol

John Davis

Getting out the facts about ethanol is what the Renewable Fuels Association is all about. That’s why the RFA is partnering with car-talk host Bobby Likis to extend their ethanol educational outreach to automotive service professionals. This RFA press release says the outreach is highlighted with the program “Calling All Technicians…20 Facts About Ethanol” on the Car Clinic Network, using radio, websites, social media, print media and key events.

Likis – award-winning, national talk-show host, answering over 100,000 automotive consumer questions live on air – has worn many hats in the automotive industry, including technician, service desk advisor, service shop owner, engine builder and pit crew. “I have 40 years of hands-on experience in servicing and repairing vehicles and building rear-engine dragsters,” says Likis. He continues, “I know we technicians share ‘prove-it’ mindsets, so in that spirit, my aim is to give techs the info they need to make informed decisions…in their service bays, at the pump and at the polls.”

Bob Dinneen, RFA’s President and CEO commented, “We are excited to have Bobby Likis on our team helping to educate mechanics and car enthusiasts about the benefits of ethanol and the introduction of E15 which will bring more consumer choice to the pump. Auto service professionals are often the first and most important line of communicating with car owners. With Bobby’s help we can educate these professionals on the cost-saving, engine performance, job-creating, environmentally-friendly benefits of an American-made fuel that is successfully reducing our dependence upon foreign oil. With Bobby’s auto industry credibility and his coast-to-coast audience, this partnership is an exciting endeavor.”

You can find out more about the efforts on radio stations and the social media network of the Car Clinic Network.

automotive, Ethanol, Ethanol News, RFA

Ag Energy Coalition Recognizes Work on Farm Bill

John Davis

A coalition working to make sure there are resources in this year’s Farm Bill to prop up renewable energy has recognized Ohio Congresswoman Rep. Marcy Kaptur and 16 other lawmakers for their work on energy programs in the current legislation:

The Ag Energy Coalition applauded Kaptur and bill’s original co-sponsors, including Rep. Earl Blumenauer (D-Ore.), Rep. Leonard Boswell (D-Iowa), Rep. Bruce Braley (D-Iowa), Rep. G.K. Butterfield (D-N.C.), Rep. Donna Christensen (D-V.I.), Rep. Marcia Fudge (D-Ohio), Rep. Maurice Hinchey (D-N.Y.), Rep. Ron Kind (D-Wisc.), Rep. Barbara Lee (D-Calif.), Rep. Dave Loebsack (D-Iowa), Rep. Ben Lujan (D-N.M.), Rep. Michael Michaud (D-Me.), Rep. Chellie Pingree (D-Me.), Rep. Laura Richardson (D-Calif.), Rep. Tim Ryan (D-Ohio), and Rep. Tim Walz (D-Minn.), for their efforts:

“The Farm Bill’s bi-partisan energy title has been a tremendous economic driver for communities throughout rural America, funding renewable energy and energy efficiency projects in every state and unlocking capital markets for the commercialization of advanced biofuels, biopower and bioproducts, expanded wind, and solar as well as improved energy efficiency for farmers and rural businesses across the country,” stated Lloyd Ritter, a founder and co-director of AgEC.

Rep. Kaptur’s bill, entitled the Rural Energy Investment Act (REIA) of 2012, is comprehensive farm energy legislation that would provide the U.S. Department of Agriculture with new resources and authorities to continue and broaden its vital mission of diversifying agricultural energy opportunities for farmers, businesses and rural landowners, saving or creating thousands of new energy employment opportunities.

Kaptur’s bill would strengthen and fund the Rural Energy for America Program (REAP) and streamline the application process. In addition, it would fund several other ag-based, domestic fuel initiatives.

Government, Legislation