EPA Approval Moves E15 Closer to the Market

Cindy Zimmerman

Fifteen percent ethanol blended motor fuel has gotten one step closer to commercial availability with Environmental Protection Agency (EPA) approval of health effects testing submitted by the Renewable Fuels Association (RFA) and Growth Energy.

EPA concluded, “Our evaluation therefore concludes that RFA/Growth Energy has submitted data and analysis that would satisfy the Tier 1 and Tier 2 testing requirements for registration.”

“EPA’s action today puts E15 on the precipice of commercialization and means that consumers may be able to choose a more affordable E15 option in time for the expensive summer driving season,” RFA President and CEO Bob Dinneen. “This is huge step toward meaningful market expansion for domestically-produced ethanol.”

The acceptance of the health effects testing clears the way for the final steps in registering E15 as a fuel and offering it in the marketplace. With EPA’s acceptance of the results of the testing submitted by the ethanol groups, suppliers of ethanol and E15 are now able to register with EPA to offer the fuel.

“Now it is up to the retailers and individual fuel companies to register for approval to sell E15,” said Tom Buis, CEO of Growth Energy. “With ethanol selling an average of 76 cents a gallon cheaper than gasoline and $4 a gallon gasoline on the horizon, we’d encourage all Americans to ask their local filling station how soon they will see more-affordable E15.”

The next step in getting E15 to consumers is the formulation of a misfueling mitigation plan. As the E15 waiver extends only to MY2001 and newer vehicles, and excludes a number of non-road, marine, and vehicle engines, helping ensure consumers are legally and appropriately using E15 is critical. Once this plan is completed, and companies register with EPA, E15 can be sold to the EPA-approved vehicles in states and at stations that are prepared to do so.

Ethanol, Ethanol News, Government, Growth Energy, RFA

2012 Youngerberg Biodiesel Essay Scholarship Offered

High school seniors in Minnesota are encouraged to apply for the 2012 Reuben Youngerberg Memorial Biodiesel Essay Scholarship.

The scholarship is given in memory of Reuben Youngerberg, and in honor of his son, Mike Youngerberg, senior director of field services at Minnesota Soybean Growers Association and huge supporter of biodiesel.

The scholarship is sponsored by the Minnesota Soybean Research and Promotion Council, with special thanks to the National Biodiesel Board, MEG Corp, and Renewable Energy Group, Inc. for their added support.

To submit your essay for the 2012 scholarship online, please fill out the form. Do not place your name or high school name anywhere on the essay you submit to ensure fairness of judging.

If you prefer to submit your essay via U.S. mail or FAX, please download, print and complete the 2012 Entry Form.

Review the Biodiesel Essay Scholarship Contest Rules before submitting your application.

Biodiesel, Education

Company Developing Drop-In Fuel From Biomass

Cindy Zimmerman

A New Jersey-based company is developing renewable drop-in gasoline from biomass.

primusPrimus Green Energy reports that the first sample of renewable drop-in gasoline has been produced through the company’s proprietary combination of biomass conversion technologies. The technique “transforms herbaceous and woody biomass, in conjunction with natural gas, into high-octane gasoline.”

According to Primus, the gasoline produced from the technology is virtually indistinguishable from gasoline produced from fossil fuel and can be used directly in engines as a component of standard fuel formulas without engine modifications.

The gasoline produced is a high quality product, with a higher-octane level (93) and a lower level of benzene than gasoline produced from petroleum. Primus Green Energy has produced fuel samples from a test plant, recently broke ground on an automated demonstration plant and is planning to break ground next year on a commercial plant in eastern Pennsylvania that will be designed to produce 4.8 million gallons per year of gasoline from wood pellets and non-food, herbaceous crops.

IC Green Energy, the green arm of Israel Corp., has invested $40m in Primus since 2008.

biomass, Energy

Higher Blends of Ethanol Would Reduce Prices at Pump

Oil prices have reached a new six-month high as Iran’s reduction of oil shipments to Europe is forcing American motorists to pay more for gasoline. In reaction, the American ethanol industry is telling consumers that higher blends of ethanol in motor fuel would reduce prices at the pump and reduce OPEC’s influence over our nation’s economy.

Growth Energy“American motorists are looking down the barrel of $5 a gallon gasoline this summer, all while foreign strongmen and dictators threaten to drive prices up even more by shutting down oil supplies. And yet we have the answer to this right here in front of us with American ethanol,” said Tom Buis, CEO of Growth Energy. “Ethanol is trading at about 75 cents a gallon cheaper than gasoline. We ought to be giving motorists here at home more choices at the pump. The choices are simple — stay chained to the whims of an Iranian strongman,or invest in clean, renewable, American-made energy with ethanol.”

Growth Energy petitioned the U.S. Environmental Protection Agency to permit blends of up to E15, from the current level of E10. After rigorous testing of engine drivability and emissions testing and found that every car tested – from model year 2001 and newer – met standards for E15.

While minor steps remain before E15 can be brought to market, there are some in Congress who continue to slow the advance of alternatives to gasoline. In a House Science Committee vote last week, Rep. James Sensenbrenner’s (R – WI) legislation to delay E15 even further won approval.

“That’s a last desperate step to keep consumers from having a choice at the pump and keep us addicted to the most unstable region in the world,” Buis said of the Sensenbrenner bill.

Read more facts and information on ethanol and prices.

Ethanol, Growth Energy, Oil

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