USDA Report Shows Value of Ethanol Co-Product

Cindy Zimmerman

A new U.S. Department of Agriculture (USDA) report finds that the ethanol co-product known as distillers grains or DDGS is replacing even more corn and soybean meal in livestock and poultry feed rations than previously thought.

According to the report by USDA’s Economic Research Service (ERS), “We found that, on average, for the past 5 crop years (2006/07-2010/11), 1 mt of distillers’ grains substitutes for about 1.22 mt of corn and soybean meal combined in the United States.”

The report also noted that “Feed market impacts of increased corn use for ethanol are smaller than that indicated by the total amount of corn used for ethanol production because of DDGS.” In fact, ERS found the amount of feed (corn and soybean meal) replaced by the DDGS represents nearly 40 percent (on a weight basis) of the corn used in the associated ethanol production process for a given crop year.

Read the report here.

“The value of the animal feed produced by the ethanol industry has long been misunderstood, understated and misrepresented,” said Geoff Cooper, Renewable Fuels Association Vice President of Research & Analysis. “Distillers grains continue to be the industry’s best kept secret, despite the fact that we are producing tremendous volumes of this high value feed product today. DDGS and other ethanol feed products significantly reduce the need for corn and soybean meal in animal feed rations. Over the past several years, distillers grains have been one of the most economically competitive sources of energy and protein available on the world feed market. While some critics of the ethanol industry attempt to downplay the role of DDGS, the facts simply can’t be ignored.”

RFA believes the report has important implications for discussions regarding ethanol’s impact on feed grains availability, feed prices, land use effects, and the greenhouse gas (GHG) impacts of producing corn ethanol.

Read more about the report from RFA here.

Distillers Grains, Ethanol, Ethanol News, livestock, livestock feed, RFA, USDA

Record Biodiesel Production Continues

Cindy Zimmerman

The Environmental Protection Agency (EPA) reports that a record 119 million gallons of “Biomass-based Diesel” were produced in September, up eight percent over the previous high of 110 million gallons in August and marking the sixth consecutive monthly record. Of that total, about 95 percent was biodiesel production, which now totals 686 million gallons for the year so far as of September.

The monthly Moderated Transaction System (EMTS) data from EPA is used to track requirements under the expanded Renewable Fuel Standard (RFS2) program for use of renewable fuels and Renewable Identification Number (RIN) transactions.

The National Biodiesel Board is pleased to see the continued growth in biodiesel this year. “Biodiesel is America’s first Advanced Biofuel,” says NBB. “It is produced in nearly every state in the country and will support more than 31,000 U.S. jobs in 2011 while replacing nearly one billion gallons of petroleum diesel.”

Biodiesel, NBB

New Propane Autogas Facility Planned for Washington

Cindy Zimmerman

Blue Star Gas is planning to break ground on a new propane autogas station and distribution facility in the Puget Sound region of Tukwila, Wash.

Blue Star already has autogas stations across California and Oregon but this will be the first in Washington state. “The Blue Star Gas facility in Tukwila now extends the reach of our propane distribution and fueling operations on the West Coast,” says Blue Star Gas President Jeff Stewart. “With this location, we will deliver Puget Sound fleets and the public the most economical and environmentally friendly alternative fuel available today and meet the needs of those who want to save money while enhancing national energy security and reducing greenhouse gas emissions.”

Blue Star is a partner in Alliance Autogas, an integrated network that includes propane retailers, premier equipment providers and certified conversion centers.

Propane

American Ethanol Racer Wins at Talladega

Cindy Zimmerman

American Ethanol spokesman Clint Bowyer won his first race of the year in the Richard Childress No. 33 Chevrolet at Talladega Superspeedway on Sunday as he raced to the front in the last lap to claim victory in the Good Sam Club 500.

Bowyer, a Kansas native, paired up with Richard Childress Racing teammate Jeff Burton as a draft-push partner in the closing laps and then jumped out in front of Burton in the final lap of the 188 lap race. It was Bowyer’s first win of 2011 and his fifth career victory.

The win also marked the 100th Sprint Cup Series win for Richard Childress Racing and its sixth win of 2011—the most of any Cup team.

After the race, Bowyer, whose contract with RCR ends at the end of this season said, “It’s just so important for me to be able to cap off such a good relationship with Richard. Everybody at RCR, it’s like family over there. Meant a lot for me to be able to win before we end this deal.”

American Ethanol is a partnership between NASCAR, Growth Energy, the National Corn Growers Association to promote domestically-produced ethanol. All NASCAR series races this year have been powered by 15% ethanol. The seventh race in the season-ending Chase championship will be next Sunday at Martinsville (Virginia) Speedway.

Ethanol, Growth Energy, NASCAR, NCGA

Event to Promote Open Fuel Standard Act

Cindy Zimmerman

Ethanol and other alternative fuel industry leaders will be on Capitol Hill Tuesday to urge Congress to an Open Fuel Standard (OFS).

Representatives John Shimkus (R-IL) and Elliot Engel (D-NY) introduced the Open Fuel Standard Act in June with the support of the Open Fuel Standard Coalition. Tuesday’s event in the nation’s capitol will include an Energy Security Roundtable and press conference.

“Americans need a choice at the pump and the Open Fuel Standard would allow them to pick an ethanol blend that meets their needs,” said Renewable Fuels Association President and CEO Bob Dinneen who will be a panelist at the roundtable. “The OFS would also create market space for other alternative fuels that are critical to our nation’s energy future.”

Dinneen will be joined by former National Security Advisor Robert McFarlane, NASCAR driver Kenny Wallace, and others who will discuss alternative fuels and the dangers of our addiction to imported oil for the event hosted by Reps. Shimkus and Engel, in 2218 Rayburn HOB from 2:00 – 3:00 p.m. Other participants will include Methanol Institute executive director Greg Dolan, and President and CEO of ACT! for America Brigitte Gabriel.

Ethanol, Ethanol News, Government, NASCAR, RFA

Coaltion Wants Energy Title in New Farm Bill

Cindy Zimmerman

A coalition of nearly 50 trade groups and organizations representing renewable energy, energy efficiency, farm, and forest interests is urging leaders of the House Agriculture and Senate Agriculture Committees to include an energy title in any new Farm Bill legislation. A $23 billion reduction in funding has been proposed to the Joint Select Committee on Deficit Reduction by the committees for USDA programs, but no details have yet been decided.

In a letter to the leadership, the recently formed Agriculture Energy Coalition noted that programs in the Energy Title of the 2008 Farm Bill “have helped finance thousands of diverse renewable energy projects and improved energy efficiency at farms, ranches and businesses across rural America.”

“Agriculture has an indispensible role to play in our nation’s emerging clean energy economy. It is vital that we develop and commercialize a variety of clean, abundant, renewable energy resources and biobased products, and Farm Bill energy programs are crucial to achieving that goal,” said coalition co-director Lloyd Ritter.

Among the members of the coalition are the Renewable Fuels Association and Growth Energy.

Energy, Ethanol, Ethanol News, Government, Growth Energy, RFA

Navy Gets Electric Vehicle

Cindy Zimmerman

The U.S. Navy took delivery of its first fully electric car this week, a brand new Chevy Volt.

“This vehicle will save 280 gallons of fuel per year,” said Deputy Assistant Secretary of the Navy for Energy Tom Hicks. “This builds to our goals the Secretary of the Navy has laid out for us to reduce our petroleum consumption by 50% by 2015.”

Hicks accepted and tested the Volt on the Navy’s behalf Thursday in Arlington, Virginia. He says the 50% petroleum reduction goal is on top of the 30% reduction the Navy has already made in the last six years.

Electric Vehicles, Energy, Government

Petroleum Marketers Join Coalition for E85

Cindy Zimmerman

The Petroleum Marketers Association of America (PMAA) has become the newest member of the Coalition for E85 to help educate policymakers about the need for 85% ethanol blended gasoline to be designated as an alternative fuel in the tax code.

“If we don’t enable E85 to compete with gasoline, we could see the entire Flex Fuel industry disappear,” said Dan Gilligan, President of PMAA, which represents 8,000 independent petroleum marketing companies. “Our members, automakers, and 9 million American drivers have invested in E85 infrastructure and Flex Fuel vehicles. With E85 so close to self-sustainability, these investments must be protected.”

The recently-formed Coalition notes that E85 is the most widely adopted alternative fuel and is defined in the Energy Policy Act of 1992 as an alternative fuel, rather than a fuel additive. “E85 is an alternative fuel just as compressed natural gas, propane, and hydrogen,” contends the group. “These alternative fuels receive a 50-cent per gallon tax credit as part of the Alternative Fuel Credit and E85 should receive the same tax treatment.”

The Coalition for E85 is an alliance of retailers, producers, equipment manufacturers, automobile manufacturers, and others supporting E85. More than 2,500 small businesses across the country have installed E85 pumps to date.

E85, Ethanol, Ethanol News

RFA Chairman on Ethanol Issues

Cindy Zimmerman

Chuck Woodside, General Manager of farmer-owned KAAPA Ethanol in Minden, Nebraska, was just re-elected for a second year as chairman of the Renewable Fuels Association (RFA).

I caught up with him this week for an update on the state of the industry, how this year has been, progress on implementing EPA’s E15 waiver, challenges to the RFS2, the importance of exports and distillers grains, and more.

Ethanol Report PodcastWoodside thinks 2011 has been a positive year for ethanol production, despite the policy challenges the industry continues to face, and he is optimistic about the future, even as they expect the Volumetric Ethanol Excise Tax Credit (VEETC) to expire at the end of the year for good. “There will be some transition, but I think the industry is confident we can compete with gasoline without the tax credit,” he said. “The VEETC was an incredibly successful program and we think there’s opportunities to build on that investment that the taxpayers made in our industry.”

Listen to Chuck Woodside’s comments in this edition of “The Ethanol Report”: RFA Chairman Chuck Woodside

Ethanol, Ethanol News, Ethanol Report, RFA

Bioheat Campaign Blankets New York

Cindy Zimmerman

A new Bioheat® advertising campaign is underway in New York City targeting oilheat customers who want a better, cleaner fuel.

The message is that consumers who use oilheat to heat their homes have the power to change – without changing a thing – by choosing Bioheat®, “a home heating fuel made with biodiesel, a renewable, cleaner-burning fuel that supports American jobs.”

Starting Oct. 24, New York City buses and the subway system will be covered with Bioheat ads. Radio commercials are already airing on six highly rated CBS stations. “Choose the cleaner, renewable home heat without changing equipment. Bioheat. It’s the evolution of oilheat,” says one version of the radio commercial.

Bioheat is made by combining oilheat with at least two percent biodiesel. It is cleaner burning, cost-competitive with oilheat, and does not require modifications to the oilheat system.

“Our public opinion research shows that oilheat customers crave the benefits of Bioheat, yet most aren’t aware that it is an option for their oilheat systems,” said Paul Nazzaro, petroleum liaison for the National Biodiesel Board. “This campaign will drive customers to ask their oilheat dealers for Bioheat, and raise their understanding of the product and its benefits.”

The ads direct consumers to the Bioheat website, bioheatonline.com, which has been revamped in conjunction with the campaign to be more user friendly to consumers and oilheat dealers alike. Facebook users can also “join the evolution” on the new Bioheat Facebook page.

“This campaign is a critical step in empowering consumers to use a truly renewable product, contribute to energy security, and support American jobs,” said John Maniscalco, CEO of the New York Oil Heating Association. An early proponent of Bioheat, Maniscalco was instrumental in passing an air quality bill that ensures Bioheat is used within the city for heating homes and buildings. Starting in October 2012, all heating oil sold within New York City will contain at least 2 percent biodiesel.

Biodiesel