ACE Conference 2026

Brazil Exports Ethanol, Struggles to Meet Its Ethanol Demand

Joanna Schroeder

This month, Brazil has resumed exporting ethanol to the United States, at the same time the country is struggling to meet its own country’s demand for ethanol to fuel is flex fuel vehicles (FFVs). Ethanol producers in the country have expanded exponentially – there are more than 115 ethanol plants many of which have come online since 2005. However, despite massive investments by foreign companies into the country’s biofuels industry, nary a five new ethanol plants are expected to come online the remainder of this year.

Some may remember that last year due to a decreased sugarcane harvest caused by excessive rains, the country reduced its minimum ethanol requirements in the country’s fuel. Then this year, threat of another reduction circulated when once again the sugarcane harvest was lower than expected. In response, the government has cited ethanol shortages due to poor long-term strategic planning by the industry. The ethanol industry countered that the cause of problems lies in lack of uneven taxes, vague plans for future regulation and lack of investment incentives.

“As long as there is no clarity about the policy for fuels, there is a risk for investments,” said the president of Sao Paulo-based Datagro consultants, Plinio Nastari in a Reuters article.

Yet on the flip side of this bickering between the Brazilian government and Brazilian ethanol producers, the industry has once again begun exporting fuel to the U.S. over the past few months. According to brokers quoted in a recent Soyatech article, the ethanol industry has exported 1.9 million barrels to the U.S. as a result of fuel retailers needing to meet the requirements of the Renewable Fuels Standard.

Brazilian sugarcane ethanol has been considered an advanced biofuel as designated by the U.S. Environmental Protection Agency (EPA). Since there is a shortage of advanced biofuels being produced in the U.S., sugarcane ethanol has become a premium fuel for the obligated parties. Ironically, the exportation of ethanol was an abrupt change as earlier this year Brazil imported ethanol to meet its country’s mandates – the first time since 1994.Read More

biofuels, Brazil, Commentary, Ethanol, International

Fuel Retailer Opposes Thune/Klobuchar Bill

Joanna Schroeder

Earlier today, Sens. John Thune (R-SD) and Amy Klobuchar (D-MN) created waves when they announced their new biofuels bill the Ethanol Reform and Deficit Reduction Act. This act is designed to address federal budget issues while phasing out ethanol tax incentives (VEETC) that are designed to go to the fuel blender of record. While the ethanol industry came out in full support of the bill, expected to be voted on tomorrow, some in the fuel retail industry have quite a different view – in favor they are not.

In an exclusive interview with DomesticFuel, Mike Lewis, Principal of one of the largest renewable fuel retailers in California, Pearson Fuels, said that
while ethanol subsidies have become unpalatable to many legislators, it is important to keep in mind that in the short term there are really only two fuel options for the 200 million plus gasoline and flex fuel vehicles on the the US roads. These two options are 1) gasoline or 2) gasoline and ethanol blends, period.

Lewis continued by saying, “As distributors and proponents of E85, we can tell you with certainty that when the VEETC is reduced or eliminated there will be an immediate decrease in the price advantage E85 has versus gasoline and this will immediately, significantly hurt E85 volumes, gasoline’s only real competitor. It will also put more pressure on the price of gasoline, causing it to increase.”

The Thune/Klobuchar Ethanol Reform and Deficit Reduction Act will incentivize some E85 infrastructure, says Lewis, but this will pale in comparison to the existing benefits of the VEETC enjoyed by E85.

“What we really need is a carve out for E85 from any elimination of the VEETC,” said Lewis. “Gasoline is subsidized in so many direct and indirect ways. For example, why do so many Americans know where the Straight of Hormuz is and how many tax dollars have we spent there? There is no line item for US Military on oil company expense statements, but it is absolutely an expense required to ensure access to their raw materials. The expense to carve out E85 from VEETC elimination is insignificant by comparison.”

Should the Ethanol Reform and Deficit Reduction Act be passed, it would take effect July 1, 2011.

biofuels, E85, Ethanol, Legislation

ASTM Close to Approval on Renewable Jet Fuel Specs

Joanna Schroeder

You hear a lot about the role biofuels could take in the aviation sector. Just a few weeks ago, the U.S. Air Force successfully tested renewable jet fuel in several of their fighter planes. Biojet fuel is poised to become a big player for the U.S. military which is the largest user of fuel in the country. But what might be holding biojetfuel back on a commercial aviation scale? No ASTM International Committee on Petroleum and Lubricant approvals.

ASTM develops standards related to oil products. You hear much ado about the biodiesel industry producing ASTM standard biodiesel but we haven’t heard much on this issue in terms of aviation. This week, ASTM announced a provisional approval for a new specification for hydroprocessed renewable jet fuel.

“This is a significant step toward a new era of greener and more energy-independent air travel,” said US FAA Administrator Randy Babbit. “We anticipate publication of a standard in the next few weeks will open the door for production of commercial aviation biofuels that can be used without changing aircraft systems or airport fueling infrastructure.”

To help move along the approval process, the Commercial Aviation Alternative Fuel Initiative conducted thorough research and testing. Once the standard is officially approved, biojet fuels with up to a 50 percent blend can be used. Feedstocks currently in the running – camelina, jatropha and algae.

biofuels, biojet fuel, Miscellaneous

Thune/Klobuchar Bill Endorsed by Ethanol Industry

Joanna Schroeder

Senators John Thune (R-SD) and Amy Klobuchar (D-MN) along with a bipartisan group of nine other Senate colleagues have introduced the Ethanol Reform and Deficit Reduction Act. The bill is designed to modify the current Volumetric Ethanol Excise Tax Incentive (VEETC), which is a set tax, to a variable tax incentive tied to the price of oil. To help open up market access for ethanol, the bill would also allocate funds saved through the updated ethanol tax incentive, to be used to expand fueling infrastructure through the vehicle of improved tax policies.

The legislation would generate $2.5 billion by ending the blenders’ credit or VEETC on July 1, 2011, and allocate $1 billion to deficit reduction and invest $1.5 billion in a blender pump tax credit, cellulosic biofuel tax incentives, a variable VEETC safety-net, and extension of the Small Ethanol Producer Tax Credit. While the USDA currently has a 10,000 blender pump program, the Ethanol Reform and Deficit Reduction Act also calls for 53,000 blender pumps – a number the ethanol industry feels is necessary to meet the Renewable Fuels Standard requirements.

“The legislation essentially sacrifices the ethanol blenders’ credit to catalyze next-generation biofuels and level the playing field with oil with one half of the market access puzzle – blender pumps,” said Brian Jennings, executive vice president of the American Coalition for Ethanol. “The other half of the market access puzzle, Flexible Fuel Vehicles (FFVs) will need to be addressed separately. ACE has been working behind the scenes with Republicans, Democrats, and the White House to advance this reform package and we will strongly support its adoption in Congress.”

Renewable Fuels Association President and CEO Bob Dinneen added, “This is thoughtful, responsible legislation that addresses the need for sound budget policy with progressive and innovative strategies for creating jobs and ending America’s addiction to imported oil. Read More

ACE, advanced biofuels, Ethanol, Ethanol News, Growth Energy, Legislation, RFA

Ethanol Expected to be Debate Topic

Cindy Zimmerman

Ethanol is expected to be a hot topic when Republican presidential hopefuls debate tonight in New Hampshire.

The candidates who are scheduled to participate include Minnesota Congresswoman Michele Bachmann, businessman Herman Cain, former Speaker of the House Newt Gingrich, Texas Congressman Ron Paul, former Minnesota Governor Tim Pawlenty, former Massachusetts Governor Mitt Romney and former Pennsylvania Senator Rick Santorum.

Renewable Fuels Association President Bob Dinneen expects ethanol to be on the agenda during the debate and hopes it will provide the opportunity for a more comprehensive conversation about America’s energy future. “America desperately needs a thoughtful, comprehensive and realistic energy strategy that fully appreciates and incents the use of domestically produced renewable fuels like ethanol,” Dinneen said.

The candidates’ views on ethanol have already been the subject of many media reports, which started hot and heavy when Gingrich made headlines in January at the Iowa Renewable Fuels Summit. At the same meeting, Santorum said he supports ethanol and called himself a “biofuels convert”.

Pawlenty made news when he announced his candidacy and called for a reform of ethanol policy similar to what the industry supports, while fellow Minnesotan Bachmann is also reportedly interested in re-examining ethanol supports.

Romney says he believes that ethanol is “an important part of our energy solution in this country” and Herman Cain also sees ethanol as one part of a needed comprehensive plan for energy independence.

Of the candidates scheduled to appear tonight, only Ron Paul, as a Libertarian and representative of Texas, has been consistent in his opposition to ethanol support.

Ethanol, Ethanol News, Government

DOE Announces $36M in Advanced Biofuels & Chemicals Funding

Joanna Schroeder

U.S. Secretary of Energy Steven Chu announced today $36 million in federal grants to fund six small-scale projects in five states designed to produce drop-in advanced biofuels and other bio-based chemicals. Each project’s goal is to improve the economics and efficiency of converting non-food biomass feedstocks into biofuels, bioproducts and biochemicals.

“Projects such as these are helping us to diversify our energy portfolio and decrease our dependence on foreign oil,” said Secretary Chu. “Together with our partners, the Department is working hard to expand the clean energy economy, creating jobs in America and providing sustainable replacements for the fuels and products now provided primarily by petroleum.”

According to Chu, the new round of funding will help diversify DOE’s Biomass Program portfolio to include a breadth of fuels and chemicals beyond cellulosic ethanol. The secondary goal is to ensure that the Department’s research and development on biofuels remains integrated and strategic.

The following projects were selected:

− General Atomics: San Diego, California who was awarded up to $2 million
− Genomatica, Inc., San Diego, California, who was awarded up to $5 million
− Michigan Biotechnology Institute, Lansing, Michigan, who was awarded up to $4.3 million
− HCL CleanTech, Inc., Oxford, North Carolina, who was awarded up to $9 million
− Texas Engineering Experiment Station, College Station, Texas, who was awarded up to $2.3 million
− Virent, Madison, Wisconsin, who was awarded up to $13.4 million

advanced biofuels, biochemicals, biofuels, biomass

New Propane Station Opens in New York

Joanna Schroeder

Geneva, New York is the home of the newest propane autogas fueling station. The station is owned by Phelps Sungas and the conversion took place with the help of Alliance AutoGas. To mark the event, a ceremony was held and on hand were New York State Senator Michael F. Nozzolio, Finger Lakes Regional Director for New York Empire State Development, Bob McNary along with President of Phelps Sungas, Roland Penta who is also the Chairman of the National Propane Gas Association.

“Propane autogas is a clean, cost-effective and domestically produced vehicle fuel that is rapidly growing in popularity with fleets across the country,” said Penta. “Our new fueling station in Geneva is a crucial step toward making American-made autogas more widely available to the public. Not only do vehicles running on autogas experience lower fuel costs, the up-front expense of implementing autogas fueling infrastructure is significantly lower than that of other alternative fuels—making it a much more viable choice for going green while saving some green.”

In other Alliance AutoGas news, the City of West Point, Mississippi plans to convert eight 2009 Ford Crown Victoria police cruisers to propane autogas. To help with the conversions, Alliance AutoGas offers not only vehicle conversions but also on-site fueling and ongoing safety training and technical support.

According to Police Chief Bobby Lane, whose team will be utilizing the converted vehicles, the propane-powered engines are expected to last two-three times longer with projected savings for the city of $26,000 annually.

“The city of West Point is ultimately supporting American energy security by running their police fleet vehicles on autogas,” added Alliance AutoGas representative Mark Denton. “The U.S. autogas supply is more than 90 percent made-in-America, so these officers can feel good knowing they’re helping reduce our nation’s dependence on foreign oil.”

Propane

Affordable Housing Community Dedicates Solar System

Joanna Schroeder

Community HousingWorks (CHW) and HelioPower hosted a celebration today for the completion of the first multifamily affordable Solar Housing MASH) project to be completed at Las Serenas, an affordable housing community located in San Diego. The 108-unit neighborhood will receive free solar energy from the solar power system and it is estimated that the energy will offset nearly 20 percent of the residents’ annual electricity bills. Additional improvements will also take place to lower utility bills and create a more sustainable community through a $475,000 federal grant from NeighborWorks America.

MASH Track 2 funds supported the installation of a 67.5 kilowatt (kW) DC solar photovoltaic facility with 100% of its production going to tenants using Virtual Net Metering. The solar facility will offset approximately 1,000 kilowatt hours (kWh) per unit annually, and are estimated to save each tenant over $100 in their yearly electricity expenses. In addition, with the installation of a performance monitoring system for each inverter, CHW and HelioPower modified the system to offer free wireless internet access to all residents.

Congressman Bob Filner (D-Calif.) was the keynote speaker during the event. “I’m excited to celebrate the completion of the solar power system at Las Serenas! With the combined resources of federal funding to NeighborWorks America and California Solar funding, we are investing in the community and promoting the development of renewable energy sources in our own backyards.”

In addition to the free solar energy, the program also provided residents with job training and educational support on all aspects of sustainable living. Other “green” apartment improvements included the installation of low-e, dual paned windows, water-saving tub and kitchen fixtures, and related kitchen and bath repairs.

Community HousingWorks President and CEO Sue Reynolds concluded, “As a leader in sustainable development, CHW knows the value of creating a safe and affordable place for families to live and thrive while at the same time building exceptional and eco-conscious apartments. Today, Las Serenas has accomplished both of these goals!”

Electricity, Energy, energy efficiency, Solar

Ethanol Industry Criticizes Coburn

Joanna Schroeder

The ethanol industry is criticizing Sen. Tom Coburn’s (R-OK) amendment to eliminate the Volumetric Ethanol Excise Tax Credit (VEETC) immediately. During the past few months, the ethanol industry has acknowledged that the time is near for the tax credit to be phased out and has offered bipartisan plans to phase out VEETC over the next five years. Growth Energy has called his action a “job killing amendment” that would “permit hostile countries to exert influence over our economy by blocking American motorists from choosing the only viable alternative to foreign oil: domestic ethanol.”

“Sen. Coburn filed his legislation within 24 hours of OPEC’s decision to let Americans suffer through high gas prices this summer,” added Growth Energy CEO Tom Buis. “Sen. Coburn clearly doesn’t see the danger of letting Iran, Venezuela and Libya control our economy, but there are other senators who do. Domestic ethanol is the only viable alternative we have to foreign oil. Ironically, Sen. Coburn proposes his legislation to repeal ethanol tax policy just weeks after he helped defeat an effort to cut tens of billions of dollars in taxpayer giveaways to global oil companies who recently received all time record profits at the expense of American motorists.”

This amendment puts Big Oil politics ahead of the best interests of the country, believes Brian Jennings, executive director of the American Coalition for Ethanol (ACE). According to opensecrets.org, Coburn received $250,000 in campaign contributions from oil and gas companies since 2005. Jennings says that as a result, Coburn is doing the bidding of Big Oil, which is to effectively raise fuel prices on consumers, put American ethanol jobs in jeopardy and keep America dependent on foreign oil.

Jennings added, “ACE members encourage Senators to vote against the Coburn amendment and support our effort to reform VEETC, promote next-generation biofuels and provide consumers with fuel choice. We also urge Congress to recognize that budget cuts shouldn’t disproportionately discriminate against American ethanol while leaving taxpayers on the hook for hundreds of billions of dollars of subsidies for oil companies.”

The Renewable Fuels Association and Growth Energy are also asking consumers to contact their Senators and ask them to Vote NO on this amendment.

ACE, Ethanol, Government, Growth Energy, Legislation

Ford to Triple EV Production by 2013

Joanna Schroeder

Ford Motor Company has announced that it will triple its production of electric vehicles (EVs) by 2013. The company plans to invest more in its C-MAX Hybrid and C-MAX Energi plug-in hybrid vehicles. In addition, Ford already has on the market the Transit Connect Electric and the Focus Electric will debut later this year. Production of these vehicles is scheduled to begin at the company’s Michigan Assembly Plant in 2012 and will locally source battery packs and electric drive transaxles built by Michigan workers.

“Customers have come to expect fuel efficiency with every new vehicle Ford delivers today, and now we are further differentiating our electrified vehicle lineup with something else people truly value – choice,” said Jim Farley, Ford’s group vice president of Marketing, Sales and Service. “Whether people want a hybrid, a plug-in hybrid or full battery electric vehicle, we have a family of vehicles for them to consider, providing a range of options to best meet their needs and support their driving habits and lifestyles.”

Today, Ford sells approximately 35,000 electrified vehicles a year, led by the Fusion Hybrid and Escape Hybrid. In par with is commitment to EVs, Ford plans to produce more than 100,000 each year by 2013. The new Ford C-MAX five-passenger vehicle, which is the base for the C-MAX Hybrid and C-MAX Energi plug-in hybrid, is already a hot seller in Europe. To date, more than 100,000 C-MAX models have been sold in the country since their launch in late 2010. As part of this initiative, Ford will also increase production of these models for the European market.

“European customers are snapping up our C-MAX five-passenger models, telling us they love the vehicle’s sporty appearance, driving quality, interior comfort and clever use of space,” said Farley. “We plan to be aggressive in delivering products like this that people really want and make smart decisions supporting our One Ford plan.”

The C-MAX model launch in North America will signal the first time Ford customers have the choice of a dedicated body style for a range of Ford EVs.

Electric Vehicles