Survey Shows Drought Spurs Need for Alt Energy

Joanna Schroeder

According to a recent ORC International survey, 81 percent of Americans are concerned about “increased drought” and other extreme weather conditions. Conducted on behalf of the Civil Society Institute (CSI), the poll results showed that concerns about drought, of which the many states have been severely affected, go hand in hand with worries about water shortages.

Three out of four Americans think that, “with all the current concern about severe drought and the risk of water shortages, America needs to start focusing more on alternative energy sources, such as wind and solar, that require less water.”

Other key findings include worry over shortages of safe drinking water due to drought and “the diversion of water for energy production” is the No. 1 overall concern in 10 drought-stricken states including, Arizona, California, Colorado, Florida, Georgia, Missouri  Nevada, New Mexico, South Carolina, and Texas. Nationwide, 64 percent of respondents are “very concerned” about the prospect of  “possible shortages of safe drinking water” due to drought and diversion for energy production.

On average, 85 percent of Americans believe availability of ample clean water should be a top national priority for the country. In addition, 89 percent of respondents said that want an energy/water “road map” for the country. People believe that, “U.S. energy planning and decision making must be made with full knowledge and understanding about the availability of water regionally and locally, and the impact this water use from specific energy choices has on their economies, including agricultural production.”

“We now understand all too well the harsh realities of the current drought and its relationship to changes in the climate from global warming. America’s ‘all of the above’ non-solution for electricity generation is a dead-end path – one requiring vast amounts of water for coal-fired power plants, nuclear reactors and the fracking extraction of natural gas,” said Pam Solo, president, Civil Society Institute.Read More

Energy, Environment, global warming, Oil, Solar, water, Wind

Propel Fuels Jumps Onto Inc. 500 List

Joanna Schroeder

Propel Fuels has been named to Inc. Magazine’s annual “Inc. 500” list of American’s fastest growing private companies. During the past three years, the company has grown more than 1,000 percent making them the 17th fastest growing company in the energy sector and 352nd overall. Today Propel operates 28 fueling locations along the west coast with plans for at least another 200 more stations to be opened over the next two years.

“This recognition is a tribute to our thousands of loyal customers and fleet partners that choose to fill with clean, renewable, domestically-produced fuels,” said Matt Horton, CEO of Propel. “This honor is just a start for Propel. As we continue to build our network of stations, we’re making progress toward our nation’s energy goals and providing choice at the pump for consumers seeking cleaner mobility options.”

Today, Propel offers fuels such as ethanol, E85 and biodiesel. In the future, the company has positioned itself and its stations to grow as fuel flexibility grows. Looking forward, stations may offer fuels such as natural gas or the ability to charge electric vehicles.

Biodiesel, biofuels, Electric Vehicles, Ethanol, Natural Gas

What is the Impact of US Drought on Global Ethanol Supply?

Joanna Schroeder

With the ongoing drought in the United States, the ethanol industry is learning how to adjust in unforeseen conditions.  While the industry is facing much criticism for being a cause of rising food prices affecting livestock producers and food manufactures alike, the industry needs to be armed with the right information to fight back. One place to get this information is during the upcoming  F.O. Licht’s World Ethanol & Biofuels event that is taking place in Munich, Germany on November 5-8, 2012.

Topics that will be discussed include:

  • What impact will this have on your business?
  • How high are corn prices expected to rise to?
  • What is expected to happen with sugar, wheat and molasses prices?
  • Globally, what impact will the drought have on ethanol trade flows, production and policy?
  • How can the biofuels industry better protect itself from this renewed negative onslaught from the media and the food and feed lobby groups?
There will be more than 700 attendees and 70 speakers from around the world. Some key presentations will be given by:
  • Bob Dinneen , President and CEO, Renewable Fuels Association (RFA), USA
  • Simon Mitchell, Director Strategy and Business Development Sugar and Ethanol, Bunge, UK
  • Michael Schmidt, CEO, BP Europa SE & Head of Country, BP Deutschland
  • Hans van Steen Head of Unit, DG Energy EU Commission
  • Yue Guojun Assistant President COFCO, China
  • Mike Dwyer, Director, Global Policy Analysis Division, U.S. Department of Agriculture (USDA)
  • Claudiu Covrig, Analyst – Ethanol & Feedstock, Sucden Geneva S.A., Switzerland
  • Frank Seyfried, Head of Group Research, Battery and Fuels, Volkswagen AG, Germany
  • Siegfried Knecht, Chairman of the Board, aireg – Aviation Initiative for Renewable Energy in Germany e.V.

For more information about the conference click here.

advanced biofuels, conferences, Ethanol

Chemtex to Build US Advanced Biofuels Plant

Joanna Schroeder

Chemtex have received word from the USDA that they will receive $99 million to help build an advanced biofuels plant in the United States. The plant will be located in Sampson County, North Carolina and once operational, will produce 20 million gallons of biofuels a years from energy crops. Construction is slated to begin this year. Chemtex has selected Novozymes as its enzymes partner.

“Novozymes is excited to partner with Chemtex to convert energy crops into cellulosic ethanol in North Carolina. It is a great step forward for the U.S. biofuels industry and an endorsement of the technologies Chemtex and Novozymes have each developed. I am confident our collaboration will become a benchmark for the advanced biofuels industry in the U.S.,” said Peder Holk Nielsen, Executive Vice President, Novozymes.

The biorefinery is targeted to go online in 2014 and will employ around 65 employees. The feedstocks used will be grown locally on marginal land that is in part currently being used as “spray fields” for the hog farming industry.

Adam Monroe, President of Novozymes North America said, “Advanced biofuels are commercializing because the Renewable Fuel Standard is working. With public and private investment, we are adding to America’s mix of domestic energy, reducing prices for consumers and freeing us from our dependence on oil.”

Chemtex will use Beta Renewables’ PROESA technology to produce cost-competitive ethanol focusing on energy grasses and agricultural waste as the main source of feedstocks. Read More

advanced biofuels, Agribusiness, Cellulosic, feedstocks

Poll Reveals a Close Presidential Race

Melissa Sandfort

Our latest ZimmPoll asked the question, “Which team for President would be best for agriculture?”

Our poll results: Forty-two percent said Romney/Ryan; thirty-five percent said Obama/Biden and twenty-three percent said neither, we need a better choice.

Our new ZimmPoll is now live and asks the question, “Beyond commodity prices, what will this year’s drought have a greater impact on?” From crop insurance to feed and fuel costs, there are a lot of potential items the drought could impact. But what do you think is going to take the biggest hit?

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

ZimmPoll

Smart Forvision Concept Vehicle Unveiled

Joanna Schroeder

Daimler, in conjunction with BASF and the American Chemistry Council (ACC), have unveiled a new smart forvision concept vehicle that was designed to save energy and enhance sustainability through vehicle efficiency. One of the energy-efficiency features is a light-transmitting roof with solar cells designed to generate energy and power the vehicle’s climate control system. In addition, the car features an infrared-reflective film developed by BASF, affixed in the windscreen and side windows. The technology protects the car interior from heating up in the summer.

“We are proud to have developed a holistic concept for sustainable urban mobility in cooperation with Daimler,” said Dr. Martin Jung, BASF’s automotive research spokesperson. “Together we are presenting a pioneering vehicle which is without parallel.”

Part of the goal of the project is to demonstrate “Chemistry to Energy”. Chemistry has the power to increase energy efficiency while also reducing the amount of energy consumed. According to an ACC study, chemistry in energy-saving products and technologies have the capability to save upwards of 10.9 quadrillion Btus of energy each year. This is staggering: this amount of energy can power up to 56 million average sized homes or enough to power 135 million cars each year. This level of energy savings could also save $85 billion in energy costs per year.

During the next several weeks, ACC is featuring a series that spotlights how chemistry is aiding in energy efficiency technologies. You can learn more at the “From Chemistry to Energy” website.

BASF, Electricity, Energy, energy efficiency, Solar

CGE Offers Wind Energy Grants

Joanna Schroeder

Schools, governments, public facilities and public school sectors have the opportunity to apply for a wind energy grant that will help institutions reduce their energy bills for five years. Sponsored by Clean Green Energy (CGE), the “Wind for a Better Community Grant” will be awarded to up to 25 institutions for five years. The grant recipients’ buildings will be powered by the new WIND e20 wind turbine.

Once the WIND e20 begins producing energy, the institution will begin to see lower utility bills. CGE will pay for the electricity created by the turbine with the hope that the grant winners will reinvest their savings back into their community.

Those representing a school, municipality or public facility can take advantage of this opportunity by submitting an online application.  Submissions are due no later than October 6, 2012.

Electricity, Energy, Wind

New Study to Assess GHG Impact of Ethanol

Joanna Schroeder

A new study will come out this fall that found that supplementing cattle feed with corn stover decreases the amount of greenhouse gases created during corn ethanol production. The research was designed to assess the impact on the carbon intensity level of a corn ethanol pathway when factoring in the replacement portion of corn grain for feed with corn stover. The study was conducted by Life Cycle Associates and supported by the National Corn Growers Association (NCGA).

“It only makes sense that farmers place an incredible priority of caring for the environment,” said NCGA Ethanol Committee Chair Chad Willis, a grower from Willmar, Minn. “Natural resources, such as healthy soil and clean air and water, enable us not only to make a living but also  to continue what, for most, is a family tradition.”

“Today’s farmers take an active role in ensuring that we adopt farm practices that have been scientifically shown to raise the largest crop possible using the fewest resources, be they nutrients, land or water,” continued Willis. “NCGA supports our efforts by making the solid, scientific information necessary to act as good stewards is readily available.”

One of the criticisms of life cycle analysis is where to begin and where to end. Researchers can choose different starting and stopping points, for example from cradle-to-grave, cradle-to-gate, cradle-to-cradle and well-to-wheel. When selecting when the life cycle analysis evaluation process begins and ends, it allows researchers to more accurately model the full greenhouse gas impact based on the current situation, or how it would be affected if a variable were changed.

Another advantage of conducting lifecycle analyses is that it can be determined where in the corn or ethanol processes resources are consumed or conserved. This enables the agricultural or biofuels industry to adopt technologies and processes that conserve resources while developing ways to improve the processes that consume the most resources. This also can help both industries save resources and costs.

corn, Ethanol, NCGA, Research

Poultry, Govs Make Case for RFS Waiver; RFA Refutes

John Davis

Poultry producers are getting some help from several governors in their call for the EPA to waive the Renewable Fuels Standard (RFS), but officials with the Renewable Fuels Association (RFA) say the RFS is working, and no waiver is needed. Georgia Gov. Nathan Deal has joined Arkansas Gov. Mike Beebe and North Carolina Gov. Beverly Perdue in asking for the waiver (see Deal’s letter here). The EPA has posted the notice in the Federal Register and is accepting public comments for the next 30 days. A decision would come within 90 days.

The poultry industry backs the waiver request, with the National Chicken Council saying, “it is now abundantly clear that severe economic damage has occurred, and will continue, as a result of the RFS’ strain on the corn supply that has been exacerbated by the worst drought in more than 50 years.” Their colleagues at the National Turkey Federation agree. In an interview, the group’s president Joel Brandenberger says that lawmakers created the waiver just for disastrous droughts. “If this isn’t such a situation, you would have to conclude that the waiver process as written is worthless.”

But the RFA points out there are an estimated 2.5 billion RFS credits accumulated over the past two years as a result of ethanol blending above RFS requirements. Officials point out that gives oil refiners extraordinary flexibility to meet RFS targets. “Together with ample ethanol supplies and slower than expected gasoline consumption, these credits make the RFS workable through the 2012/2013 corn marketing year.”

Brandenberger asserts that it is the standard combined with the drought creating tight supplies that is pushing up prices. “The [RFS] has been distorting the corn market from the first day it was created in 2005.” But the RFA counters that this will still be the eighth-largest corn crop in U.S. history, and globally, the second-largest ever. And the group also points to the large amount of animal feed made from ethanol production. “One-third of every bushel used by an ethanol plant is returned to the feed market as high-protein feed. Ignoring this exaggerates the impact of ethanol on corn supplies,” the RFA stated.

Listen to my interview with Brandenberger here: Interview with Joel Brandenberger, President, National Turkey Federation

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

Aventine Enters Into Restructuring Agreement

Joanna Schroeder

Aventine Renewable Energy has announced the company has entered into a Restructuring Agreement with 100% of its term loan lenders. Under the terms of this agreement the company will convert the majority of its outstanding term loan debt into newly issued common equity, representing, on a fully diluted basis, approximately 92.5 percent of the issued and outstanding common stock after the issuance.

The company’s board of directors have approved the agreement and 60 percent of the stock holders have also approved the agreement. If the agreement is fully executed, Aventine’s existing debt should be reduced by nearly $135 million. In addition, the agreement would not affect unsecured creditors and trade creditors will continue to receive payments. The transactions are targeted to close sometime in the 3rd quarter of this year.

“The Company would like to thank its lenders and significant stakeholders for supporting its business and operations. These are difficult times for the industry and the consummation of these transactions is expected to result in a much stronger balance sheet for the Company,” said John Castle, Aventine’s Chief Executive Officer.

Company Announcement, Ethanol