ACE Conference 2026

Duke Acquires Kansas Wind Farm Project

Joanna Schroeder

Two hundred miles west of Wichita will be the home of the newest wind farm in Kansas. Duke Energy Renewables has announced they have purchased the 131-megawatt Cimarron II Windpower Project in Gray County. Construction will begin this fall and the project is expected to be generating wind power by June of 2012. The wind farm will be cited on 16,000 acres of leased farmland and Duke estimates that the wind farm will generate enough energy to power 40,000 homes each year.

Duke purchased the project from CPV Renewable Energy who will maintain ownership of the first phase – Cimarron I. Kansas City Power & Light will purchase all generated power as well as the associated renewable energy credits for 28 years.

“Duke Energy Renewables is pleased to acquire this high-quality wind power project from CPV Renewable Energy and looks forward to helping Kansas City Power & Light deliver zero-emission electricity to its customers,” said Duke Energy Renewables Senior Vice President Tony Dorazio.

In the past month, Duke Energy has announced plans to add three wind farms to its portfolio. Once the projects are complete, the company’s wind-generated capacity will be nearly 1,300 megawatts or enough to power approximately 400,000 homes.

Sean Finnerty, senior vice president with CPV Renewable Energy Company added, “CPV Renewable Energy Company has teamed up with Duke Energy Renewables to ensure Cimarron II meets the needs of Kansas City Power & Light’s customers. The project will bring significant benefits locally and to the citizens of Kansas.”

Electricity, Energy, Wind

Senate Compromise Reached on Ethanol Tax Credit

Cindy Zimmerman

A deal has been reached in the Senate that would eliminate the ethanol blenders tax credit but still provide incentives for infrastructure development.

U.S. Senators John Thune (R-S.D.) and Amy Klobuchar (D-Minn.) announced the agreement “that allows for a transition to a more sustainable model of incentives for domestic renewable fuel production while reducing the nation’s deficit by $1.3 billion.” The agreement, based on Thune and Klobuchar’s bipartisan Ethanol Reform and Deficit Reduction Act, would end the existing 45 cent per gallon Volumetric Ethanol Excise Tax Credit at the end of this month, five months earlier than its current expiration date of December 31, 2011. According to the announcement from Sen. Thune’s office, “The bipartisan agreement would dedicate two-thirds of the savings from existing money—$1.3 billion—to debt reduction and the remaining $668 million in savings to renewable fuel incentives, helping provide consumers with lower gas prices.”

Renewable Fuels Association (RFA) Chairman Chuck Woodside, CEO of farmer-owned KAAPA Ethanol in Nebraska says the compromise is not perfect, but the industry is willing to do its part to help the budget deficit. “While it is clear this agreement does not encompass everything proposed by Senators Klobuchar and Thune in their bill (the Ethanol Tax Reform and Deficit Reduction Act), their tireless effort to find a path forward is a testament to their commitment to American ethanol production and is greatly appreciated by advocates of renewable fuels,” Woodside said in a statement from RFA.

Something the ethanol industry would like to still see addressed is limitations placed on the cellulosic biofuel incentives, which American Coalition for Ethanol Executive Vice President Brian Jennings says needs “to be fixed in order to meaningfully help spur the commercialization of these promising fuels.” The agreement includes a modification and extension of the existing $1.01 per gallon tax credit for cellulosic biofuels through 2015 that would otherwise expire on December 31, 2012. It would be changed from a yearly credit to a gallon-based, capped credit, according to Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC), something that “adds artificial and unnecessary layers of uncertainty and risk for the financing community.”

National Corn Growers Association President Bart Schott says the “compromise reflects both the importance of the ethanol industry to achieve energy independence and the need for fiscal responsibility” but they would still like to see a more level playing field for energy policy. “Unlike the oil and gas industries, ethanol has been proactively working to reform tax policy affecting the industry and secure a safety net while reducing the overall cost to the federal government,” said Schott.

Sens. Thune and Klobuchar say that the agreement is consistent with recent votes in the Senate that have sought to end the current Volumetric Ethanol Excise Tax Credit while still continuing to fund blender pumps. The compromise can now be considered by the full Senate.

ACE, biofuels, Ethanol, Ethanol News, Government, RFA

Industry Questions Ethanol Hearing Witness List

Cindy Zimmerman

The House Committee on Science, Space and Technology’s Subcommittee on Energy and Environment is holding a hearing today on “examining the science” of 15% ethanol in fuel, but the corn ethanol industry is questioning the list of witnesses, which appears to be somewhat lopsided.

“The Environmental Protection Agency has been thorough in its work on the E15 waiver request and several outside researchers have been evaluating and analyzing E15 and other blends for a number of years,” said National Corn Growers Association (NCGA) President Bart Schott. “While EPA will have someone there to testify, the remainder of those on the list of witnesses testifying have a long-standing history of being critical of corn-based ethanol at any level. This is an extremely unbalanced panel and it is easy to see why some consider this hearing to be a sham.”

Those set to testify at the hearing this afternoon include representatives from the American Petroleum Institute, Environmental Working Group, Evinrude Outboard Motors, National Chicken Council, and the Outdoor Power Equipment Institute. Only one witness, Steven Burke with the Biofuels Center of North Carolina, will be representing the ethanol industry.

“This hearing pretends to look at the science behind E15,” Schott said. “We have a hard time understanding what makes the National Chicken Council or the Environmental Working Group scientific experts on the safety and efficiency of automotive fuels in modern internal combustion engines.”

The Renewable Fuels Association (RFA) is also questioning the witness list for today’s hearing. “This is little more than a congressionally-sanctioned witch hunt for those with an axe to grind against farmers and ethanol producers,” said RFA President and CEO Bob Dinneen. The RFA sent a letter to committee leadership to provide the ethanol industry’s point of view as it is not represented on the panel.

The hearing will be held at 2 pm Eastern time.

corn, Ethanol, Ethanol News, Government, NCGA, RFA

Loan Guarentee Offered for Cellulosic Ethanol Plant

Cindy Zimmerman

The government is paving the way for the nation’s first commercial cellulosic ethanol plant in Iowa.

U.S. Energy Secretary Steven Chu and Agriculture Secretary Tom Vilsack made the announcement today of a $105 million loan guarantee to support the development of Project LIBERTY, sponsored by POET and located in Emmetsburg, Iowa.

“This project will help decrease our dependence on oil, create jobs and aid our transition to clean, renewable energy that is produced here at home,” said Secretary Chu. “The innovations used in this project are another example of how we are seizing the opportunity to create new economic opportunities to win the clean energy future.”

“Projects like the one we are announcing today show that our investments in next generation biofuels are paying off,” said Secretary Vilsack. “Project LIBERTY will produce up to 25 million gallons of ethanol per year, create over 200 jobs, and generate millions of dollars in revenue for the local economy. This project is an important step in the Obama Administration’s effort to break our nation’s unsustainable dependence on foreign oil and move toward a clean energy economy.”

According to POET officials, the plant will ultimately produce up to 25 million gallons of ethanol per year, generate approximately 200 jobs during construction and 40 permanent jobs at the plant, and bring approximately $14 million in new revenue to area farmers.

Cellulosic, Ethanol, Ethanol News, Government, POET

Load Toad Available for Ethanol Producers

Chuck Zimmerman

The Load Toad™ was on the loose in Indianapolis last week.

The patented Load Toad™ technology that evenly distributes distillers’ dried grains onto rail cars was unveiled for the first time at the 2011 Fuel Ethanol Workshop in Indianapolis, IN. It was first announced at the end of last year.

“The Load Toad is used with conventional loading to enhance the process by pushing product out into the void space of the rail cars,” said Joel Bordewyk, Associate Mechanical Engineer with POET, which developed the technology for their plants. The technology was installed in POET plants in 2010, and those plants have been able to load 3-5% more DDGS into each car.

“It goes straight to the bottom line,” Bordewyk explains. “If you can ship 19 rail cars instead of 20 and each week you are cutting more and more rail cars out of your fleet, it’s just more profit.”

Listen to an interview with Joel who explains all about the Load Toad: Load Toad Interview

2011 FEW Photo Album

Our coverage of the 2011 Fuel Ethanol Workshop is being made possible by the Renewable Fuels Association.

Ethanol, Ethanol News, POET

Corn Growers Proud to Promote American Ethanol

Chuck Zimmerman

At the 2011 Fuel Ethanol Workshop last week, the CEO of the National Corn Growers Association (NCGA) accepted an award for promoting the advancement of ethanol on behalf of the corn industry as a whole.

“It’s more of an award for the people that I work with, the farmers, our leaders, our great staff, the state groups,” said Rick Tolman after accepting the ethanol industry’s High Octane Award. “I think it reflects how committed we are to this industry, how much we have gotten engaged and involved.”

One way that NCGA has gotten involved in a big way in the promotion of ethanol recently is the commitment to the American Ethanol NASCAR program, which Tolman says has exceeded his expectations. “I think it’s one of the best things we’ve ever done,” he said. “It still has real potential to be a game changer for ethanol.”

Tolman says that NASCAR has proven to be a wonderful partner. “When they first came to us 2-3 years ago, I was impressed then that they did their homework. They knew the myths and the misinformation,” Tolman said. “They’ve been first class from day one.”

Listen to or download an interview with Rick Tolman here: Rick Tolman Interview

2011 FEW Photo Album

Our coverage of the 2011 Fuel Ethanol Workshop sponsored by the Renewable Fuels Association.

Audio, corn, Ethanol, Ethanol News, NASCAR, NCGA

ZimmPoll Results for GIPSA Rule Proposal

Chuck Zimmerman

The ZimmPoll is not a scientific, statistically valid measurement of any demographic but rather a gauge of opinion and other information from interested readers. Never has that been more evident than this past week when our poll was highly influenced by a concerted campaign to do so by R-Calf in response to a post Cindy did, “GIPSA Dominates Senate Committee Hearing.” The R-Calf campaign helped generate most of the 112 comments posted there. Unfortunately, most of them are nothing more than personal attacks on Senator Pat Roberts. They do little to foster a constructive “debate.” I considered not approving many of them but figure common sense people will see them and realize the movement behind them and take them for what they’re worth. There are some good, reasoned comments mixed in from both sides of the issue at least. We’re just happy to provide a public forum for this very important issue.

So, the results of our last poll which asked the question, “What do you think of USDA’s proposed GIPSA Rule?” are as follows: 68% say Love it, 18% say Kill it, 10% say What’s GIPSA? and 4% say Good concept but needs changes. The R-Calf position is in favor of the proposal and I think that’s clearly reflected in the results. By the way, the poll generated the most responses we’ve had to a ZimmPoll to date. What do you think about this issue if you haven’t already weighed in? Feel free to make a comment.

Our new ZimmPoll is now live. We’re asking the question, “What’s the very first thing you check online each day?” Let us know what you think.

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

ZimmPoll

Iowans Have Saved $50M in Fuel Costs in 2011

Joanna Schroeder

Looking to save some cash on fuel costs? For those who can’t reduce your driving should consider filling up with ethanol or E10 to be exact. Drivers in Iowa who have fueled up with E10 in 2011 have saved $50 million during the first five months of the year according to the Iowa Renewable Fuels Association (IRFA).

Ethanol sales in the state have remained steady at 75 percent of total gasoline sales totaling over 500 million gallons from January through May. The Iowa Department of Revenue released the figures and also noted that E10 blends averaged a 10-cent savings compared to E0 (100 percent gasoline) during that this time frame.

“Having just celebrated the Fourth of July weekend, Monty Shaw, Executive Director of IRFA said it is important to remember that Iowans choosing E10 will keep more money in their wallets. “With high crude oil prices driving up the cost of nearly everything we buy, from food to clothing, it is nice to know ethanol is helping to reduce high gasoline prices.”

This is not the only proof that ethanol saves all consumers money at the pump. A recent study by the Center for Agricultural and Rural Development (CARD) at Iowa State University found that consumer savings from ethanol goes far beyond the price reduction at the pump. In fact, in 2010, Midwestern consumers saved an average of $1.37 per gallon because ethanol expanded the fuel supply and helped to drive down the cost of all gasoline products, regardless of ethanol content.

“Today, 25 percent of the gasoline produced from domestic resources is ethanol,” added Shaw. “Having ethanol as an affordable, domestic alternative to high priced foreign oil is paying big dividends – for consumers, for jobs, and for energy security.”

biofuels, Ethanol

Country’s First B20 Biodiesel Bus Retired

Joanna Schroeder

Medford, New Jersey’s, and possibly the country’s, first bus to run on a 20 percent blend of biodiesel (B20) has been retired. The 1998 International bus consumed more than 28,000 gallons of biodiesel during its lifetime and allowed children to ride to and from school and other events surrounded by cleaner air.

The bus was first fueled with B20 on November 17, 1997 and during its tenure logged 190,000 miles without ever needing any major engine work. In addition, the bust still has its original fuel injectors and pump. So if the bus is in mint condition why is it being retired? Because New Jersey has a mandatory school bus retirement age.

Joe Biluck, Director of Operations and Technology for the Medford, NJ Township Board of Education, sees the bus as symbolic of the biodiesel industry’s challenges and achievements over the past 13 years. Furthermore, he points out that many of the children who rode the bus back in 1997 are now in their early 20s. He hopes that exposing those children and thousands of others over the past 13 years to a “real world” application of how renewable energy can be a successful alternative to fossil fuels has helped shape their views as adults about the importance of sustainable energy.

Biodiesel

Biofuels Arrive in Tarrant, Alabama

Joanna Schroeder

Biofuels have arrived in Tarrant, Alabama. Pacific Pride Services, a subsidiary of Wright Express Corporation, has announced that in partnership with Quality Petroleum of Alabama the opening of the first Commercial Fuel Center offering both biodiesel for fleet customers as well as ethanol. The new location is Quality Petroleum’s eighth Pacific Pride Fuel Center in Alabama and joins more than 1,000 centers across the U.S. and Canada.

“We are excited to bring a clean new commercial fueling center to Tarrant. The biodiesel offered at our center will give fleets an even greater variety of environmentally friendly fueling options,” said David Melton, Vice President of Quality Petroleum of Alabama. “Tarrant is a hub of commercial trucking fleet activity and we look forward to being a part of the community for many years to come.”

Gregory D. Iverson, President of Pacific Pride Services added, “Pacific Pride is proud to partner with innovative petroleum marketers to bring valuable fuel management and alternative energy solutions to businesses with commercial vehicles. The 24-hours, seven-days-a-week facility will also seek to prevent fraud and monitor transaction security for all of its private and municipal fleet customers.”

Biodiesel, biofuels, Ethanol