USDA Offers Optimistic Outlook for Corn Crop

Cindy Zimmerman

The first U.S. Department of Agriculture outlook for this year’s corn crop is calling for record yields and record production, while corn use for ethanol is expected to remain the same.

The May 10 World Agricultural Supply and Demand Estimates report projects U.S. feed grain supplies for 2012/13 at a record 416.3 million tons, up 16 percent from 2011/12 at a record 416.3 million tons, with corn production called at a record 14.8 billion bushels, up 2.4 billion from 2011/12.

A projected 5.1-million acre increase in harvested area and higher expected yields, compared with 2011/12, sharply boost production prospects. The 2012/13 corn yield is projected at a record 166.0 bushels per acre, 2.0 bushels above the 1990-2010 trend reflecting the rapid pace of planting and emergence. Despite the lowest expected carry-in in 16 years, corn supplies for 2012/13 are projected at a record 15.7 billion bushels, up 2.2 billion from 2011/12. Total U.S. corn use for 2012/13 is projected up 9 percent from 2011/12 on higher feed and residual disappearance, increased use for sweeteners and starch, and larger exports.

The report kept projected corn use for ethanol unchanged at 5 billion bushels for this year on weak gasoline consumption limiting domestic blending opportunities. In an analysis of the report this morning, the Renewable Fuels Association said, “While still just an estimate, the confidence USDA is displaying in American farmers underscores their unique ability to feed the world and help renewably fuel the nation. There is a lot of growing season left, and these numbers could change by the fall. But, with normal growing conditions it is clear that farmers will continue to meet the bell and provide safe, reliable food and clean, domestic fuel and silence those ‘chicken littles’ that perpetually predict a shortage of corn and catastrophe in the grocery aisle.”

corn, Ethanol, Ethanol News, RFA, USDA

EdeniQ Secures $30M in Bio Funding

Joanna Schroeder

Despite the sluggish economy, select advanced bioproducts companies are still receiving funding. EdeniQ has announced that they have secured over $30 million in capital in the form of an equity investment and debt facility. The funds will be used to continue development of its technology to convert sugars to biomaterials such as biochemicals and biofuels. The investment was led by current investors along with a new investor, Flint Hills Resources Renewables.

According to EdeniQ, its technology increases yield and output at existing ethanol plants and provides a pathway to move into cellulosic feedstocks. The Cellunator mills a variety of biomass into small, uniform pieces of feedstock that using Pathway enzymes to break down the materials can be converted at low cost to sugars. The company’s technology can be added as a bolt-on to existing ethanol facilities or integrated into new cellulosic ethanol processing plants.

“The market is eager for innovation that can scale from today’s ethanol technology to tomorrow’s resource requirements by creating the lowest-cost route to cellulosic sugars and subsequent high-value products,” said Brian Thome, President and CEO, EdeniQ. “The investments by these prestigious organizations allow EdeniQ to continue our strategy of taking advantage of the existing infrastructure in place across the country and providing a proven pathway to increased sugar yield.“

Flint Hill Resources has four ethanol plants operating in Iowa. Jeremy Bezdek, the company’s managing director of innovation said they invested in EdeniQ because, “EdeniQ’s proprietary technologies provide significant value for the dry-mill ethanol producer in today’s marketplace. Our investment in EdeniQ is another step in our vision to enhance the competitive advantage of our ethanol production facilities.”

advanced biofuels, biochemicals, biomaterials

South Dakota – Home to Substandard Gas?

Joanna Schroeder

South Dakota could continue to be the home of substandard gas if refiners have their way. If the American Coalition for Ethanol (ACE), a national ethanol organization based in Sioux Falls, South Dakota has its way, it will not become the dumping grounds for low-octane fuel. Historically the state has allowed 85 octane gasoline for sale in the western part of the state but it has been discovered to be “leaking” into other areas. Ironically after a review of state laws and rules by the SD Weights and Measures it was determined that the sale of this gas is illegal.

ACE Executive Vice President Brian Jennings asks that the state follow the letter of the law and resist making 85 octane gasoline available throughout the state.

“We strongly oppose this recommendation to bend the rules so refiners can pad their profits by dumping substandard gasoline into South Dakota,” Jennings said. “Eighty-five octane gasoline is bottom of the barrel fuel that according to vehicle manufacturers will reduce fuel economy and performance, increase harmful tailpipe emissions, and could damage engines.”

The organization has learned that the State would require a label to inform consumers that the 85 octane fuel may not meet engine manufacturer’s minimum standards for vehicle performance. Before any changes take effect, however, the state will open the discussion up for public input. ACE along with other ethanol and corn grower stakeholders plan to submit comments in opposition of the rule change.

“Even though ethanol’s blending octane is 113, the highest and cleanest source of octane on the market, when this low-grade gas is blended with 10 percent ethanol we are very concerned ethanol will be mistakenly blamed for engine performance problems,” continued Jennings. “That is an unacceptable consequence for South Dakota’s ethanol industry and thousands of the state’s residents and farmers who have invested in ethanol production.”

biofuels, Ethanol, Oil

Sports Industry Looks to Solar

Joanna Schroeder

Soccer teams in Maryland will now be playing games with the help of the sun. Solar Energy World has been contracted to install a solar energy system in Soccer Dome II in Harmans, Maryland. The system will include the installation of 546 solar panels paired with a 126 kWh photovoltaic grid-interactive system over 13,067 square feet of roof space. When the two solar technologies are pared together, they are estimated to generate 130,000 kWh of electricity. The projected is expected to be completed by the end of June.

“We’re installing the system because we’re confident it will yield double bottom-line benefits by reducing our carbon footprint and our utility bill,” said Soccer Dome President Clif Everett.

The solar energy will be hooked into the city’s grid and produce enough energy to offset nearly 85 percent of the Soccer Dome’s energy needs as averaged over a total year. In summer months when the system is anticipated to generate more electricity than the stadium needs, the excess will be sold to BGE. Many sports complexes across the country are adding solar energy to their green mix.

Solar Energy World Vice President Geoff Mirkin said of the project, “Forward-thinking organizations, like Soccer Dome, that increase our region’s energy production by installing solar panel systems have a vital impact on their surrounding communities. More businesses and organizations are looking to cut costs and resources needed to build and operate sports venues. When they find ways to do so while reducing their environmental impact, they enhance the return on investment tenfold. It’s a real win-win situation.”

Electricity, Energy, Solar

Report: Biofuels Contribute to Global Economy

Joanna Schroeder

According to a new report, the biofuels industry contributed $277.3 billion to the global economy in 2010. “Contribution of Biofuels to the Global Economy” was commissioned by the Global Renewable Fuels Alliance (GFRA) and outlines the economic footprint of the biofuels industry. The actual research was conducted by Cardno Entrix.

Global biofuel production produced 110 billion litres in 2010 and supported nearly 1.4 million jobs in all sectors of the global economy according to GFRA. By 2020 the industry is forecasted to produce over 196 billion litres and support over 2.2 million jobs across all sectors worldwide. It is expected that the majority of future growth will come from developing nations in Asia and Africa.

“It is promising to see the global biofuels industry growing during these difficult economic times,” said Bliss Baker, spokesperson for GFRA. “The global biofuels industry is a bright spot in the current world economy and is contributing billions of dollars to output and creating hundreds of thousands of jobs all while reducing our reliance on crude oil.”

Baker added that a growing biofuels industry in developing nations will help bring wealth, jobs and prosperity while reducing reliance on oil. He concluded by noting that the report truly demonstrates the how far the biofuels industry has come in the past decade and showcases continued growth of the industry.

biofuels, Ethanol

Strides Made in Converting Cassava to Ethanol

Joanna Schroeder

TMO Renewables has announced they are making headway with producing pilot scale levels of ethanol from cassava stalk. The company is working with several Chinese fuel and food producers. TMO estimates that they will be able to produce a gallon of ethanol for less than two dollars, an important step for commercialization of fuels using advanced feedstocks.

The company has developed a technology platform that can break down a large number of different types of biomass into cellulosic ethanol. The per gallon prices are nearing a point of competitiveness, TMO says, due to their ability to reduce costs through savings in maintenance, production time and capital expenditures. They have also been able to reduce costs through enzyme loadings. When using cassava stalk, TMO is predicting their conversion process will yield 70 to 80 gallons of ethanol per ton of feedstock.

“The total global capacity for 2G biofuels should reach more than 4 billion gallons by 2015,” said Pavel Molchanov, energy analyst at Raymond James. “Crucial to even greater production of cellulosic ethanol is the availability of diverse feedstock options, and cassava stalk can play an important role in the Asian market.”

TMO’s bread and butter partners have been the Chinese who developed the first industrial-scale biorefinery using cassava.  TMO is currently finalizing its process design at its demonstration facility. Once achieved, the company will begin moving forward with plans to expand to commercial scale production.

advanced biofuels, Ethanol

Domestic Energy Tax Credits on Congress “To Do” List

Cindy Zimmerman

President Obama made up a “to-do list” for Congress during a stop in Albany, New York yesterday that includes renewing tax incentives for the development of new domestic energy sources.

At a speech to students at the State University of New York, the president said if Congress fails to act soon, clean energy companies will see their taxes go up and they could be forced to lay off employees. “In fact, we’re already hearing from folks who produce wind turbines and solar panels and a lot of this green energy that they’re getting worried because there’s uncertainty out there,” he said. “Congress hasn’t renewed some of the tax breaks that are so important to this industry. And since I know that the other side in Congress have promised they’ll never raise taxes as long as they live, this is a good time to keep that promise when it comes to businesses that are putting Americans to work and helping break our dependence on foreign oil. So we should extend these tax credits. That’s on the “To-Do” list.”

The Advanced Ethanol Council applauds President Obama’s remarks. “The President is right to ask for an extension of existing clean energy tax incentives, including those for cellulosic and advanced ethanol technologies, which level the playing field for clean energy investments in the face of decades-old and permanent tax breaks for the fossil fuel industry. The country will not win the race to develop and deploy clean energy technologies if the U.S. tax code continues to favor incumbents over innovators. We look forward to working with the White House and Congress to ensure that America emerges as the world leader in clean energy and biofuel development.”

advanced biofuels, AEC, Cellulosic, Ethanol, Ethanol News, Solar, Wind

Develop Relationship With Your Local Reporters

Chuck Zimmerman

Our latest ZimmPoll asked the question, “Should raw milk be allowed for sale?” The question was prompted by one of the panelists at the 2012 Animal Agriculture Alliance Stakeholders Summit. She is a reporter with a food safety publication who says that this issue is the one that gets the most comments and response of any other. This question generated the most comments of any ZimmPoll to date so I understand what she was saying. Actually, most comments wanted a 4th response option to allow the sale of raw milk but with sufficient regulation and testing to ensure it is safe. I saw the comments too late to make that change so I don’t know if these results would have been different. So the answer, Absolutely with no regulation received 66%; On a very limited and regulated basis received 20% and Definitely not, too many health concerns received 14%. Surprised? I’m thinking that we not only have a lot of raw milk lovers in the ZimmComm News Network community but they are very active at getting others to vote! This poll also had one of the highest number of responses we’ve had so far. Why do you think that is?

Our new ZimmPoll is now live and asks the question, “When was the last time you talked to a journalist about agriculture?” The question is inspired by last night’s AgChat Twitter conversation and a question that had been submitted by @BASFAgro! We’re supposed to stand up for our industry and livelihoods that are threatened by lots of misinformation that gets spread by the media. Just consider how corn ethanol is portrayed so often in the media as an example. What are we doing about it? How are we speaking out? This need is why Domestic Fuel was started originally. Are we willing to develop a relationship with the reporters at our local mainstream media outlets (newspaper/radio/tv/web)? More questions I know but there is a lot we can all do to help educate the ultimate consumers of the products we produce. Keep it up. It does make a difference!

Let your friends and neighbors know they can participate by sharing this link.

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

ZimmPoll

Corn Utilization Agenda Includes Biofuels and Refineries

Cindy Zimmerman

Since it is an even-numbered year, that means the National Corn Growers Association’s Corn Utilization and Technology Conference (CUTC) will be held this year.

cutcThe 2012 CUTC agenda features cutting-edge technologies and new uses that are positioned change the corn industry. Among the session topics is Advance Biofuels, which will highlight some of the most recent research on advanced biofuels. Speakers will cover thermochemical and biochemical and biomimetic routes to the pretreatment and hydrolysis of lignocellulosics (such as corn fiber hulls, corn stover, etc.) to produce sugar and phenolic monomers that can be further upgraded to synthetic fuels, bioethanol, and/or chemicals.

Technical sessions will also focus on the future of Biorefineries, which will be critical in replacing products that have traditionally been produced using fossil fuels. Recent technical and engineering advances in the production of renewable fuels and bio-based chemicals will be discussed as well as the development of next generation biofuels such as Biobutanol.

“We are proud of CUTC’s position as the premier corn technology conference in the United States and of the many learning opportunities that we will offer,” said NCGA Research and Business Development Action Team Chair DeVonna Zeug. “But the conference offers much more including incredibly important networking opportunities. By exchanging ideas with people who have common interests, we create the hybrid of new technology and new ideas.”

Registration is now open for CUTC, which will be held this year at the Westin Indianapolis in downtown Indianapolis, Ind., June 4-6.

advanced biofuels, corn, CUTC, Ethanol, Ethanol News, NCGA, Research

Corn Progress Running Ahead of Normal

Cindy Zimmerman

Nationwide, over 70% of the corn crop is planted now, well ahead of the less than half average for this time of year, according to the latest report from USDA.

“In spite of the wettest weather of the spring, producers in the Midwest still managed to plant a significant acreage of corn and soybeans” last week, says USDA Meteorologist Brad Rippey. “Corn emergence was greatly benefited by the rain and continuing warm weather.” Nearly a third of the crop is emerged nationwide, compared to the average of 13%. Last year, just six percent was emerged by this time.

All of the major corn-growing states are well ahead of average in both planting and emergence. Illinois, Indiana and Missouri all have more than 80% planted and over half emerged already. Iowa has caught up and surpassed the average for the state and progress now stands at 64%, compared to the five year average of 58%. Emergence of 23% in Iowa is more than twice the normal pace for this time of year. Only Texas remains behind the average, with 75% planted compared to 80% normal. Emergence-wise, three states are behind schedule – Pennsylvania and Wisconsin, along with Texas.

“What growers optimistically viewed as a potentially optimal planting season has become a reality in many areas,” said National Corn Growers Association President Garry Niemeyer. “Conditions could still change, but either way, farmers will meet the challenge and produce an affordable, abundant supply of corn.”

This Thursday, the USDA will release the first estimate of the 2012 corn supply and demand and there is speculation that it may include adjustments to the estimate of U.S. carry-out stocks as well as including the first USDA projection of the 2012-2013 U.S. corn crop.

corn, Ethanol, Ethanol News, NCGA