NEC 2027

ISU Professor Explains Ethanol/Gas Price Study

Cindy Zimmerman

The Iowa State University professor who co-authored a new study on ethanol and gasoline prices released this week says the impact of the growing use of the domestically-produced fuel is significant.

hayesThe new analysis from the Center for Agricultural and Rural Development (CARD), an update to a 2009 peer-reviewed paper published in Energy Policy by professors Dermot Hayes of ISU and Xiaodong Du of the University of Wisconsin, found that the growing use of American ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011, up from an average impact of $0.89 per gallon in 2010. The study also found the between 2000 and 2011, gasoline prices have been reduced by an average of $0.29 per gallon, thanks to ethanol.

“Those numbers are large,” said Professor Hayes during a conference call on Tuesday during which he explained his hypotheses for the big impact of ethanol. “Think about the world before ethanol occurred. Every time a gasoline refinery would shut down, the price of gasoline would go up 10-20 cents because the U.S. was at its refinery capacity. What ethanol has done is increased refinery capacity.”

Hayes calls ethanol a “magic bullet that can squeeze ten percent more gasoline out of a barrel of crude oil.”

The original study was the result of a dissertation by Professor Du, while the Renewable Fuels Association funded the update.

Listen to Hayes’ explanation of the study here: ISU Professor Dermot Hayes

Audio, Ethanol, Ethanol News, RFA

Frito-Lay Hits Million-Mile Mark with Electric Trucks

Frito-Lay and parent company PepsiCo are showing their commitment to environmental sustainability, by announcing that their all-electric trucks have just passed one million miles of use.

Since going electric late last year, its fleet of 176 trucks by Smith Electric Vehicles has eliminated the need for approximately 200,000 gallons of diesel fuel. The all-electric trucks are used for deliveries on urban routes with fewer daily miles.Frito-Lay owns the seventh largest fleet in the U.S. with a total of over 20,000 trucks. The $13 billion convenient foods business has a goal to reduce greenhouse gases and fuel consumption 50 percent by 2020.

“The first million miles with the electric trucks have been a journey of understanding and refining both how and where we use these vehicles, as well as providing input to help improve upon the performance for the next generation vehicle,” said Mike O’Connell, senior director of fleet capability for Frito-Lay North America.

This year Frito-Lay will purchase 100 Newton Series 2000 all-electric commercial vehicles bringing the total number of its electric fleet to more than 280, and a fuel consumption reduction of 500,000 gallons annually.
With all electric trucks fully deployed on routes, Frito-Lay expects to reduce their fuel consumption by 500,000 gallons a year. The trucks generate zero tailpipe emissions. Electric trucks reduce fuel consumption, noise pollution and vehicle CO2 emissions, compared to traditional delivery trucks.

Compressed natural gas (CNG) tractors will be introduced soon, and will be used to haul large loads. Each CNG vehicle, purchased from Freightliner, will reduce greenhouse gas emissions by 23 percent, compared to diesel. With 67 CNG vehicles planned to be on route by the end of the year, Frito-Lay will eliminate the need for more than 900,000 gallons of diesel fuel annually. The CNG vehicles will be used at seven Frito-Lay North America distribution centers, including: Rancho Cucamonga, CA; Irving, TX; Phoenix, AZ; Beloit, WI; Frankfort, IN; Charlotte, NC; and Casa Grande, AZ. The company piloted 18 CNG vehicles to prepare for the roll out.

Company Announcement, Electric Vehicles, Fleet

CLG & ARA To Develop Drop-in Diesel

Joanna Schroeder

ARA’s ReadiJet Alternative Fuel Initiative has a new member: Chevron Lummus Global (CLG) a 50-50 joint venture between Chevron Products Company and Lummus Technology. The goal of the project is to create drop-in diesel and jet kero biofuels. The two companies will work together to combine ARA’s CH PROCESS technology with CLG’s ISOCONVERSION process technology to create drop-in biofuels for jet and diesel engines.

“The integrated ARA/CLG process provides a pathway for fulfilling the military and civilian markets’ requirements for alternative fuels at parity with petroleum while spurring opportunities for America’s farmers without subsidies,” said Rob Sues, ARA’s President and CEO.

ReadiJet fuel is currently being produced in anticipation for a number of upcoming activities including ground engine testing at OEM facilities, a test flight planned for June 2012 and generation of fit-for-purpose data necessary for ASTM certification.

According to Ed Coppola, ARA fuels principal engineer, the CH Process uses water to reduce hydrogen and catalyst consumption as well as carbon emissions when compared to other conversion processes.  Once the project proves successful and construction is complete on commercial scale biorefineries, CLG will provide licensing and engineering services, reactor engineering, catalyst supply, and start-up assistance.

“With the combination of ARA’s CH PROCESS and CLG’s ISOCONVERSION process technology, we can now produce fungible distillate fuels that meet full ASTM quality requirements and can be blended into refiners’ distillate fuel pools without the density and blending quality issues associated with other biodiesel processes on the market,” said CLG’s Co-Managing Director, Leon DeBruyn.

He added, “We’re also excited that our process works just as well with any other fatty acid bio-derived oils, plant seed oils, and algal oil, which will provide long lasting value for our customers by giving them flexibility to process what is available in the market.”

advanced biofuels, aviation biofuels

Stuart Jet Center Flies Solar

Joanna Schroeder

Stuart Jet Center has added solar energy to three of their hangers. The 50 kilowatt system was installed by Peak Solar LLC and is the 5th largest privately owned solar energy system in Florida. The return on investment for the project is estimated to be between 5-7 years with the help of a business rebate from Florida Power and Light along with a 30 percent tax benefit from the federal government.

The solar system features 240 Canadian Solar panels and installation support was provided by Coronado Homes. This is the first solar development at the Stuart Jet Center but additional solar installations are in the works. The Stuart Jet Center said not only did this project make financial sense, but environmental sense as well and hopes other businesses in the community will follow suit and install solar power systems.

This 50kw system will save the equivalent of: 4,835.07 gallons of oil per year; recycle 44,940 pounds of waste; and offset CO2 emissions by 130,333 pounds each year.

Electricity, Energy, Solar

Contact Your Local Reporters

Chuck Zimmerman

Our latest ZimmPoll asked the question, “When was the last time you talked to a journalist about agriculture?” The question was inspired by an AgChat Twitter conversation 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. What are we doing about it? How are we speaking out? Are we willing to develop a relationship with the reporters at our local mainstream media outlets (newspaper/radio/tv/web)? We appreciate responses from those in the ethanol industry. Glad to hear some of you are taking this time to do this.

Here are the results, 50% said Recently (I do frequently). Wow. Keep it up. But 22% said Never (Waste of time) and just over 9%/each said, Recently (I rarely do); Long time ago; Never (I will now though).

Our new ZimmPoll is now live and asks the question, “Who should be responsible for child nutrition?” This question was inspired by last night’s FoodChat Twitter conversation. I appreciate the school lunch program and what USDA thinks it is accomplishing by creating rules but somehow it doesn’t sit right with me. There would be no need for this if parents would take some personal responsibility for themselves and their children. More and more government control of our lives just won’t work in the long run. At least that’s my opinion. What’s yours?

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

ZimmPoll

El Salvador to Create Geothermal Training Center

Joanna Schroeder

El Salvador is soon to be the home of a new international geothermal training center for Latin America and the Caribbean. The country received a grant for $2 million from the Inter-American Development Bank (IDB) and the center will help aid countries learn how to develop and run geothermal energy facilities.

It is estimated that the region’s geothermal potential is 6,000 megawatts. Central America represents 43 percent, Mexico 39 percent, the Andean region 17 percent, and Southern Cone 1 percent. However, to realize this potential, Central America must improve its technical and scientific capabilities.

The training center, located at the Universidad de El Salvador, will offer three specialized graduate-level courses for geothermal experts between 2013-2015. The program will offer 10 scholarships for Salvadoran participants and 10 scholarships for students from other countries.  The program is the only one of its kind in the region and is based on a 2010 pilot program conducted by Universidad de El Salvador, together with LaGeo and support from Italy.

In addition to the courses, a Sustainable Regional Training Plan in Geothermal Energy will be prepared to examine future demand for training as well as academic and financial aspects. It will define curriculum and teaching methods needed to ensure that students receive the best training available. Consideration will also be given to creating additional masters or doctoral-level training in geothermal energy.

In El Salvador two geothermal fields are currently being developed, Ahuachapán and Berlíncon. Once completed they will boast combined installed capacity of 204 megawatts and a net annual 1,421 gigawatt/hours of generation. This will equate to 14 percent of national installed capacity and 25 percent of net generation capacity, with production projected for an additional 25-30 years.

Electricity, Energy, Geothermal

Report Raises Concerns Over Biomass Production

Joanna Schroeder

A new report from Carbon Trade Watch, “Nothing Neutral Here: Large-scale biomass subsidies in the UK and the role of the EU ETS,” is sounding alarms over the UK’s move to increase biomass consumption as part of its green economy plans. Earlier this month, Brazilian Suzano Papel e Celulose received approval for what is believed to be the most advanced genetically modified (GM) tree plantation trial ever.

The report ties together demand for biomass in the UK to the role of the EU’s Emissions Trading System and what Carbon Trade Watch says is the destructive expansion of industrial monoculture tree plantations around the world. The report came on the heals of an April 26, 2012 announcement from the UK government regarding its bioenergy strategy that included increased energy production from biomass. Carbon Trade Watch believes the “British biomass boom” will benefit polluters and cause “widespread environmental destruction through land grabs and deforestation.”

“The British government seems determined to lock the country into a dirty energy pathway that fuels climate chaos, arguably the greatest modern day threat to human survival,” said report author Joseph Zacune. “Campaigners are warning that the government’s new bioenergy strategy will require around 80 million tonnes of wood for biomass energy that would unleash land grabs and cause major emissions from deforestation. Why should we continue to subsidise polluters in favour of appropriate energy solutions like wind, solar and tidal energy?”

According to Carbon Trade Watch, local communities across the UK are campaigning to stop biomass-fueled power plants while companies are “greenwashing their polluting activities.

Tamra Gilbertson co-director of Carbon Trade Watch added, “Climate justice struggles bring together grassroots networks, groups and individuals that are demanding tough action against the root causes of climate change and for a truly sustainable, affordable and democratic energy system. To continue the same over-production and over-consumption of energy is a dead-end but governments continue to ensure that profit-seeking corporations control the energy systems and pollute our skies.”

advanced biofuels, bioenergy, biofuels, Carbon

Report Shows Ethanol Kept Gas Prices Lower in 2011

Cindy Zimmerman

rfaAn update to a 2009 report from the Center for Agricultural and Rural Development (CARD) on the impact of ethanol on domestic gasoline prices was released today, showing that ethanol reduced wholesale gasoline prices by $1.09 per gallon nationally last year. Renewable Fuels Association President and CEO Bob Dinneen says this peer-reviewed study shows how ethanol is keeping gas prices lower than they might otherwise be.

“The results are significant,” Dinneen said. “It reflects the fact that ethanol is less expensive than gasoline today and is displacing ten percent of liquid transportation fuel today and has a huge impact on the price of crude oil.” The $1.09 per gallon impact is 20 cents more than the previous year.

Dinneen explains that the $1.09 a gallon savings means that ethanol reduced the average American household’s spending on gasoline by more
than $1,200 last year, based on average gasoline consumption data. “Since 2000, ethanol has helped save $39.8 billion annually in excess gasoline costs – or roughly $349 per household per year,” he said.

Ethanol Report PodcastSince the study is based on just 10% ethanol in the nation’s gasoline supply, Dinneen notes that increasing that under the E15 waiver approved by EPA can only result in more savings. “If you’re going to be adding 50% more of a product that is less expensive than gasoline to the overall blend, you’d be providing consumers an even more significant benefit,” he said. “We believe the economics of ethanol are going to drive E15 into the marketplace this summer.”

Listen to Dinneen talk about the new report in this edition of “The Ethanol Report.” Bob Dinneen Discusses Impact of Ethanol on Gas Prices Report

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Hall County Schools Adopt Propane Autogas

Joanna Schroeder

The Hall County School system is the first in Georgia to adopt propane autogas for its school bus fleet. The buses were unveiled during a “Georgians supporting Georgians for a greener community” event that featured Governor Nathan Deal and Lieutenant Governor Casey Cagle. Hall County School system purchased 20 Blue Bird Propane-Powered Vision School buses that were manufactured in Georgia.

The 72 passenger buses each feature a ROUSH CleanTech liquid propane autogas fuel system. According to ROUSH, this system reduces nitrogen oxide, carbon monoxide and total hydrocarbon emissions as well as nearly eliminate particulate matter as compared to buses fueled with traditional diesel fuel.

“We choose propane autogas because not only does it represent significant reduced fuel costs and clean-burning properties, but also because the source, natural gas, is in abundant supply right here in America,” said William Schofield, superintendent of the Hall County Schools. “With today’s tight school budgets, using a transportation fuel that saves taxpayers money, keeps the environment clean, and keeps jobs within our national borders is a win-win for everyone. Plus, our drivers love how quiet the propane buses perform.”

According to the Natural Resources Defense Council, children are among those most susceptible to the health effects of exhaust exposure. Because of this fact, school districts across the country have been looking for ways to reduce exhaust emissions. For Hall County they will pay less than $2.00 per gallon for the propane as compared to $3.50 for diesel. During 2012, the school districts expects to save $36,000 in fuel costs.

Hall County tested the system over a two-year time frame before the decision was made. Phil Horlock, president & CEO of Blue Bird Corporation added, “Schools across the nation are experiencing the environmental and economic benefits of Blue Bird’s propane buses. We are proud to deliver a bus that not only provides school children with a reliable, safe and environmentally-friendly ride to and from school every day, but also fuels economic development in Georgia.”

Propane

Researchers Look at Using Food Waste for Hydrogen

Joanna Schroeder

What might be a good use of food waste? Hydrogen. Researchers from the University of Birmingham in the UK are creating bioenergy in the form of hydrogen for use an an alternative to gasoline. Researchers note that in a country like Brazil that is converting sugarcane to ethanol it may not be sustainable in the long-term. The reason is because the process generates carbon dioxide and agricultural waste. The advantage of creating hydrogen is that it can use the waste generated by the production of other products and it is sustainable and emission free.

Professor Lynne Macaskie, Professor of Applied Microbiology at the University of Birmingham, gave a presentation on the hydrogen research during a collaborative workshop in São Paulo on May 14, 2012. “Fuel cells need clean energy to run them. If you provide bacteria with a supply of sugary waste from, for example, chocolate production, the bacteria can produce hydrogen. At the moment manufacturers pay to dispose of waste but with our technique they could convert it to clean electricity instead.”

According to Macaskie, the research shows a huge potential for biohydrogen as a fuel for the future. “Biohydrogen could even be made from the wastes from bioethanol production – two biofuels for the price of one,” he said. “More work from focused teams, however, is needed, as agricultural wastes are tougher for bacteria to digest.”

The event was organized by O Conselho de Reitores das Universidades Estaduais de São Paulo (CRUESP) and the FAPESP bioenergy programme (FAPESP-BIOEN). Participants came from the University of Birmingham, the University of Nottingham, the State University of Campinas (UNICAMP), the University of São Paulo, and São Paulo State University (UNESP).

bioenergy, Electricity, Hydrogen