Brazil Ethanol Sales Down

Cindy Zimmerman

A lower percentage of ethanol required to be blended with gasoline in Brazil is resulting in lower ethanol sales, according to the Brazilian Sugarcane Industry Association (UNICA).

UNICAUNICA reports that ethanol sales by mills in the South-Central region totaled 1.29 billion liters in January, a drop of 32.32% compared to the 1.90 billion liters sold during the same period in 2011. Of this year’s total for January, 1.24 billion liters remained in the domestic market and only 42.44 million liters were exported.

January anhydrous ethanol sales totaled 483.91 million liters, down from 584.38 million liters during the same period of last year. As for hydrous ethanol, 760.40 million liters were sold during the month, down sharply from 1.23 billion liters during the same period of the 2010/2011 harvest.

The drop in anhydrous ethanol sales is the result of a cut in the amount of ethanol blended with gasoline which went into effect in 2011, according to UNICA Technical Director Antonio de Padua Rodrigues. “If the blend level had remained at 25%, sales in January 2012 would have been greater than in January of 2011,” he added.

Brazil, Ethanol, Ethanol News, UNICA

ACE says E15 Could Help Ease Rising Gas Prices

Could E15 ethanol (a blend of 85% gasoline and 15% ethanol) be the economical answer to the nation’s higher fuel costs? The American Coalition for Ethanol (ACE) believes so.
National surveys indicate that gasoline prices are up about 45 cents a gallon compared to a year ago, while ethanol prices have dropped more than 30 cents. Current ethanol wholesale prices are about 80 cents less than gasoline, says Ron Lamberty, senior vice president for ACE, a national advocacy association for the U.S. ethanol industry.

“At today’s prices, 10% ethanol blends are already saving consumers 8 to 10 cents per gallon compared to unleaded gasoline. Nationally, that saves almost $30 million dollars a day,” Lamberty says. “E15 could offer even greater savings. Drivers with vehicles new enough to use E15 could be saving 12 to 15 cents a gallon by choosing the E15 blend, potentially cutting gasoline costs by an additional $10 million dollars each day.”

E15 would benefit consumers and federal officials should immediately complete any work needed to allow marketers to offer the fuel for sale at stations across the country, Lamberty adds.

After years of testing by EPA and the Department of Energy, E15 was approved more than a year ago, as an option for cars and light trucks built in 2001 and later.

“Ethanol opponents continue to create new roadblocks, claiming to be “pro-consumer” and “pro free market,” while they do everything they can to keep E15 – a tested, approved, safe fuel – off of the market. That causes consumers to over-pay for gas and it is the opposite of a free market.” says Lamberty. “E15 is approved as an option. Retailers don’t have to add it to their product slate and consumers don’t have to buy it. Yet there is considerable effort to continue misleading and frightening consumers into supporting this idea of an auto fuel Nanny Slate that only benefits the oil industry and those who depend on Big Oil’s support,” according to Lamberty.

“ACE is urging federal officials and Congress to get behind efforts to open up E15 for public sale to all vehicles that are 2001 and newer as soon as possible. It’s time that we allow American consumers the option to support a cleaner fuel that helps cut down on imports of foreign oil and supports American jobs. We think that the majority of Americans would be in favor of something this beneficial for consumers rather than supporting efforts that only go to increase profits for oil companies,” Lamberty said.

ACE, Ethanol

Looking Forward to a Dieselex Gold Rush

Cindy Zimmerman

With the official roll out of the FS Energy Products newly-reformulated premium diesel fuel Dieselex Gold coming up next week, we got a little preview from GROWMARK marketing manager for refined and renewable fuels Mark Dehner at last week’s National Biodiesel Conference.

“Our Dieselex product was first introduced in the market place in 1952,” Dehner says, explaining that it was re-formulated in 2002 and re-named Dieselex Gold. “We’re re-introducing and re-formulating the Dieselex Gold product and kicking it off to our member co-operatives in late February.”

The product will have a new look on the marketing side and it does have some different characteristics and Dehner says biodiesel will play a role. “Through the Renewable Fuel Standard, 2012 there is a billion gallon target to hit, and while EPA has not yet ruled on 2013, it appears it will be 1.2 billion gallons, so biodiesel is here to stay,” he said.

Listen to our interview with Mark Dehner from the National Biodiesel Conference here: Mark Dehner Interview

advanced biofuels, Audio, Biodiesel, Biodiesel Conference, GROWMARK

Higher Farm Equipment Sales This Year?

Chuck Zimmerman

Just in time for the 2012 National Farm Machinery Show, our latest ZimmPoll asked the question, “How do you think farm equipment sales will do this year compared to last?” Things are looking bright for exhibitors here since 48% said Higher. However, 34% said Lower and 18% said Same. I think that’s a positive outlook. What do you think?

Our new ZimmPoll is now live and asks the question, “What’s the next “big” thing in ag comm/social media?” I posed this question last week and got quite a few responses. Here’s your chance to weigh in on the subject. If you have a different choice please feel free to leave a comment.

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

ZimmPoll

Advanced Ethanol Group Asks for Tax Extensions

Cindy Zimmerman

RFA AECThe Advanced Ethanol Council (AEC) this week urged Senate Ag Committee Chair Debbie Stabenow (D-MI) and Ranking Member Pat Roberts (R-KS) to include two key tax extensions for advanced and cellulosic ethanol producers in the next farm bill.

In a letter to the committee leaders, AEC Executive Director Brooke Coleman wrote, “The Cellulosic Biofuels Producer Tax Credit (PTC) — created in the 2008 Farm Bill — and the Special Depreciation Allowance for Cellulosic Biofuel Plant Property are vital to the ongoing development of the domestic advanced ethanol industry. … Several billion dollars have been invested in advanced biofuels development with the expectation that Congress will stay the course with regard to its commitment to the industry. A tax increase on advanced biofuels at this time would curtail investment and undercut an industry just starting to close deals and break ground on first commercial plants.”

Beyond the tax extension, Coleman also highlighted four areas in which the Farm Bill could help accelerate the commercialization of advanced and cellulosic ethanol technologies. These areas include extending the USDA Loan Guarantee program for biorefinery projects with changes to facilitate participation by lending institutions.

Also, Coleman asked for support of USDA’s efforts to build out ethanol refueling infrastructure via the Rural Energy for America Program to allow ethanol to compete in the market based on price, reform the Biomass Crop Assistance Program, and modify the Repowering Assistance program to help existing bio-refining operations deploy advanced ethanol technologies and feedstock utilization.

Read the entire letter here.

advanced biofuels, AEC, Ethanol, Ethanol News, Government

Trade Show Features Propane Autogas SUV

A sleek, black, propane autogas-powered 2008 Ford Expedition is on display this week at the International Limousine, Charter & Tour (LCT) Show in Las Vegas courtesy of Blue Star Gas, the West Coast flagship fuel provider for the national Alliance AutoGas network.

The LCT Show is the largest industry gathering in the world for limousine, charter and tour operators. Blue Star Gas autogas experts Darren Engle and Brett Flanigan are on-hand at the Propane Education Research Council exhibit to educate for-hire vehicle fleets on the benefits of affordable, American-made autogas. Their messages is that commercial fleets running on autogas not only save money on fuel costs and reduce harmful pollutants, they also help enhance America’s energy security by utilizing this domestically produced clean fuel.

“We’re here as a resource for chartered vehicle fleet owners and managers interested in driving greener while boosting their bottom line,” says Engle. “The up-front cost of converting to autogas is more cost-effective compared to other alternative fuels, so fleets can start saving right away.”

Propane autogas historically averages $1 per gallon less than gasoline, and fleets running on autogas report reduced maintenance costs because it’s a cleaner-burning fuel. It is the third most widely used fuel in the world, and 90 percent of the U.S. autogas supply is made in America. There are already more than 2,000 public autogas fueling stations in place across the country, and an Alliance AutoGas partner will install an on-site fueling station for fleets at no up-front cost.

“Some fleet operators may be initially intimidated by the prospect of shifting to an alternative fuel, but working with us doesn’t require fleet personnel to have an extensive knowledge of clean technology,” says Engle. “Blue Star Gas is part of the Alliance AutoGas complete program, so we are there every step of the process to provide autogas vehicle conversions, fuel stations and supply, staff training and ongoing technical support. We’re working to help make this affordable clean fuel an even more viable option for more U.S. fleets.”

Fleet, Propane

BIO Congress to Feature Advanced Biofuels Sessions

Cindy Zimmerman

BIOBiofuel and renewable chemical company executives, scientists and government officials from around the globe will speak in breakout sessions at BIO’s 9th annual World Congress on Industrial Biotechnology and Bioprocessing, April 29 – May 2 at the Gaylord Palms Resort & Convention Center in Orlando.

BIO’s World Congress will feature six breakout session tracks over three days, including tracks on Advanced Biofuel Technologies and Algae and Feedstock Crops. More than 35 sessions will cover the latest progress in commercializing advanced biofuels, consumer benefits from renewable chemicals, company partnerships and more in industrial biotechnology. BIO’s World Congress will also feature investor sessions and business partnering opportunities. The investor sessions will allow executives from companies seeking to raise investment capital to make formal 25-minute presentations on their technology development and business models to an elite audience of investors and analysts.

Early bird registration for the event is now open. Rates go up $400 after February 29.

advanced biofuels, algae, BIO, Biodiesel, biofuels, Ethanol, Ethanol News

Coalition for E85 Issues Call to Action

Cindy Zimmerman

The Coalition for E85 is calling on members and other supporters to urge Congress to give E85 credit for being an alternative fuel.

The coalition is asking members of Congress to support the inclusion of E85 in the Alternative Fuel Credit in the tax extenders package currently under review. In coordination with this effort, members of the Coalition for E85 will be in Washington this week to meet with their Congressional representatives to explain how E85 is defined as an alternative fuel everywhere in the U.S. code, except in the Internal Revenue Code and that amending the Alternative Fuel Tax Credit to include E85 would give the fuel the same tax status as other alternative fuels, such as compressed natural gas and propane.

“With the potential to provide 12 million American drivers with a clean fuel option, this is an affordable common-sense approach to reducing our foreign petroleum dependency while supporting development of next generation biofuels,” said Todd Garner, CEO of Protec Fuel. “Recognizing E85 as the most widely used alternative fuel protects American jobs and recognizes the investment that millions of Flex Fuel drivers have made in supporting home-grown clean fuels.”

The Coalition urges supporters of E85 and anyone who has been impacted by the expiration of the ethanol tax credit to take action now. “We ask you to contact your Representative and Senators and request that they support E85’s inclusion in the tax extenders package,” said Phil Lampert with the Coalition. “Now is the time to act, as negotiations in Washington could impact the future of alternative fuels across the country.”

The Coalition for E85 is a group of retailers, producers, equipment manufacturers, automobile manufacturers and other supporters of E85 fuel.

advanced biofuels, E85, Ethanol, Ethanol News, Government

Ethanol Report on RFS Challenge

Cindy Zimmerman

The Renewable Fuels Association is pleased with the action taken by environmental groups in withdrawing from a lawsuit brought by the National Chicken Council, National Meat Association, and National Turkey Federation challenging EPA’s Renewable Fuels Standard (RFS).

Ethanol Report PodcastIn this edition of “The Ethanol Report,” Renewable Fuels Association president and CEO Bob Dinneen talks about what this means for the challenge to the RFS, which is vital to the expansion of renewable fuels for the transportation sector of the United States. “In the absence of the tax incentive, what is providing the foundational demand for the ethanol industry is the Renewable Fuel Standard,” says Dinneen. “We think that program has proven to be tremendously successful in reducing our nation’s reliance on imported oil.”

Dinneen says the environmental groups’ challenge to the RFS was much broader based than the poultry groups’ challenge, including that EPA had not taken into account the “global rebound effect” of ethanol driving down the price of oil which supposedly has led to third world countries using more oil. “That is how silly the environmental claims were,” he said. All that is left now, according to Dinneen, is a narrow issue regarding how EPA applied grandfathering provisions for addressing ethanol plants built in 2008 and 2009. “It says a lot about how far the angry birds are willing to go on this case,” he added, expressing optimism that the case will ultimately be thrown out.

Listen to or download the Ethanol Report here: Ethanol Report on RFS Challenge

Subscribe to the Ethanol Report here.

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Environmental Groups Back Out of RFS Challenge

Cindy Zimmerman

Environmental organizations have withdrawn their support of a challenge to the Renewable Fuel Standard (RFS) brought by the National Chicken Council, National Meat Association, and National Turkey Federation.

The U.S. Court of Appeals for the District of Columbia Circuit heard oral arguments today in the lawsuit that challenges RFS regulations issued on March 26, 2010. The challenge is focused on a provision in the rules addressing ethanol plants built in 2008 and 2009 and the requirements that they must meet to generate trading credits under the program.

While the lawsuit is proceeding on this relatively narrow aspect of the regulations, a broad-based challenge that had been brought by environmental advocacy groups Friends of the Earth and National Wildlife Federation was dismissed by the Court of Appeals on the eve of argument. With just one business day before argument and after full briefing had been completed, the environmental advocacy groups filed a motion with the Court to voluntarily end their challenge. Their withdrawal from the case leaves only the limited challenge of the Meat/Poultry groups.

Growth EnergyA major issue in the oral argument was whether these groups were properly before the Court. The ethanol industry through the Renewable Fuels Association (RFA) and Growth Energy intervened in the case to defend the rule and argued that the challenges must fail on both procedural and substantive grounds. “We are hopeful that the Court will act quickly to uphold this remaining element of the rules that is subject to legal challenge, given the policy underlying the provision to create a stable environment for investment in renewable fuel facilities,” said Growth Energy CEO Tom Buis.

RFA“We are pleased that the environmental group petitioners realized that their challenges were so unlikely to succeed that they dismissed their case. We only wish that they had come to this conclusion before wasting the resources of the government and biofuels producers who had to defend the challenges in briefing,” added RFA President and CEO Bob Dinneen, who noted that the environmental groups decided to drop their claims on Friday.

“Quite frankly, had they prevailed, which we think is unlikely, they could potentially have taken down the entire Renewable Fuel Standard,” Dinneen said.

Environment, Ethanol, Ethanol News, Growth Energy, RFA