New Blender Pump in York, NE

Cindy Zimmerman

nebraska blender pumpA new ethanol blender pump opened last week in York, Nebraska thanks to the efforts of the Nebraska Ethanol Board and the Nebraska Corn Board.

“E85 is cleaner than gas, it’s produced here in Nebraska, and more and more cars can use it every year,” said Todd Sneller, Nebraska Ethanol Board Administrator. ”The addition of this new flex fuel dispenser will ensure that consumers will have more choices at the pump to fuel up their flex fuel vehicle,” added Kim Clark, Ag Program Manager with the Nebraska Corn Board. “Consumers will be able to fill up based on price, performance and availability.”

The York E85 / blender pump is the 61st in Nebraska to offer the renewable fuel. The location will have regular gasoline, ethanol fuels, and diesel available 24 hours a day. Over 96,000 Nebraska motorists currently own Flexible Fuel Vehicles, which can run on any blend of ethanol and gasoline, including E85.

blends, corn, Ethanol, Ethanol News, Flex Fuel Vehicles

Enzymatic Process Touted for Biodiesel Production

John Davis

A Texas-based company claims its enzymatic process for turning waste grease into clean-burning biodiesel will save money and can be used on existing biodiesel plants.

Biodiesel Experts International LLC of Pearland, near Houston, calls its process “revolutionary” and is offering to provide engineering, onsite supervision, startup, training, enzyme material, and complete plants:

The enzymatic process consist of two (2) different types of enzyme, one for tranesterification and one for esterification. Feed stocks with 0-100 FFA can be processed at an operating temperature of ONLY 85 F and minimal methanol required. There is no caustics required and no soap formation. The byproducts produced are high quality glycerin and water. This enzymatic process can also be used only for FFA reduction with proved results to reduce FFA levels to less than 1 from any level of FFA with an operating temperature of ONLY 85 F. The methanol requirement is less than 15% by weight for FFA reduction.

We checked with the National Biodiesel Board about this outfit and its claims, and while the NBB “does not investigate, evaluate, or recommend biodiesel production techniques or equipment,” it does say the technology could prove to be a promising innovation to make biodiesel production more economical:

“The use of enzymes for biodiesel production is one such innovation that holds promise. In fact, there were two presentations on enzymatic biodiesel production at the National Biodiesel Conference and Expo this year. As with any biodiesel process technology, be it new or old, it is absolutely critical the reaction go completely to the mono-alkyl ester (i.e. biodiesel) and that the resulting product meets or exceeds all the parameters in ASTM D6751.”

Biodiesel, NBB

Oregon Becomes 2nd State with 5% Biodiesel Mandate

John Davis

Oregon has become the 2nd state in the nation to have a 5 percent biodiesel requirement.

The state joins Minnesota in requiring the B5 mix and gained the praise of the National Biodiesel Board:

“Policymakers in Oregon should be congratulated for displaying national leadership on clean energy issues,” said Shelby Neal, NBB regulatory affairs director. “As a result of the biodiesel policy, Oregon’s citizens will enjoy cleaner air, green jobs, and a higher level of energy independence.”

The state has already had a 2 percent biodiesel (B2) requirement in effect. Oregon’s B5 requirement was scheduled to be triggered when the in-state production capacity reached 15 million gallons annually, which the biodiesel plants recently accomplished. The requirement will generate about 25 million gallons of biodiesel demand annually.

“Increasing the use of domestically produced, low carbon fuels like biodiesel is a win-win for Oregon,” said Rick Wallace, a senior policy analyst at the Oregon Department of Energy, and the Clean Cities Coordinator of the Columbia-Willamette Clean Cities Coalition. “We’re supporting the local economy while reducing pollution, rather than relying entirely on fossil fuels to power our state.”

The state already had a B2 requirement, along with Washington and Pennsylvania. Connecticut, Louisiana, Massachusetts and New Mexico also have biodiesel mandates that haven’t kicked in yet.

Biodiesel, NBB

Vilsack Named Biofool of the Year

Cindy Zimmerman

Friends of the Earth (FOE) has named U.S. Secretary of Agriculture Tom Vilsack the 2011 Biofool of the Year, the organization’s award that recognizes “leaders that promote dirty biofuels.”

According to FOE, Vilsack received 2,424 votes of the more than 6,000 cast and they say he definitely deserves the honor. “With Secretary Vilsack at the helm, the USDA has doubled down on its support for corn ethanol and biofuels.” FOE is asking supporters to sign on to a letter they will deliver to Secretary Vilsack later this month, “congratulating him on earning this honor and thanking him for his efforts to promote dirty biofuels at the expense of a comprehensive agriculture policy that would actually help American farmers who grow food!”

The letter reads, in part:
You justify your support for ethanol subsidies because you think ethanol subsidies support farmers. Yet, ethanol subsidies go to refiners, not farmers, and less than 20 percent of America’s ethanol is produced in farmer-owned refineries. The other 80 percent is produced by conglomerates like Archer Daniels Midland and Big Oil companies.

Actually, the ethanol subsidy – the Volumetric Ethanol Excise Tax Credit (VEETC) or blenders credit – goes to fuel blenders, not farmers or refiners. According to the American Coalition for Ethanol (ACE), as of last year, it is true that totally farmer-owned ethanol plants produced about 2.5 billion gallons of ethanol annually, almost 20 percent of the industry’s total capacity. “However, many other U.S. ethanol plants can be considered “locally owned” because local community members are shareholders in the companies,” according to ACE. That would include the world’s largest ethanol producer, POET, which is a privately held company. The 27 POET Biorefineries are owned by various investors, including farmers, most of whom purchased shares in a private offering. POET’s current production capacity stands at about 1.7 billion gallons annually – or about 12-13 percent of current U.S. production. ADM and oil company-backed plants such as Valero produce a significant amount of the nation’s current capacity, but there are many other company-owned or publicly traded ethanol companies, like Pacific Ethanol, that could hardly be classified as “conglomerates.”

Regardless of the facts, Secretary Vilsack is definitely deserving of this honor recognizing his support of ethanol and Domestic Fuel congratulates him.

corn, Ethanol, Ethanol News, Farming, USDA

UNICA Expects Decline in Brazil Ethanol Exports

Cindy Zimmerman

Ethanol exports from Brazil could drop by as much as 18% this season compared to last year, according to the Brazilian Sugarcane Industry Association (UNICA).

UNICAUNICA is expecting a slight increase in ethanol production this year, however. “Ethanol production should reach 25.51 billion liters in the 2011/2012 season, a 0.52% increase compared to the last harvest, when the total reached 25.37 billion liters,” the organization reports. According to UNICA’s Technical Director, Antonio de Padua Rodrigues, increased ethanol production combined with a drop in exports will result in an increase of almost 500 million liters of the biofuel in the domestic supply. “However, this increase in ethanol supply for domestic use is lower than the expected growth in demand, given accelerated sales of flex vehicles,” he said.

Of the 25.51 billion liters of ethanol expected in the new season, 17.21 billion will be hydrous ethanol and 8.30 billion will be anhydrous ethanol. This volume of anhydrous ethanol is sufficient to meet the 25% blend with gasoline, even if a smaller share of the flex fuel fleet uses hydrous ethanol as expected, as consumers that own flex-fuel choose gasoline because of pricing.

The forecast for the 2011/2012 Brazilian sugarcane harvest calls for 568.50 million tons, up 2.11% compared to last year. The country is expecting an overall recovery in agricultural productivity after a lengthy dry spell, but UNICA is projecting that average productivity of the total sugarcane area for the 2011/2012 harvest will decline compared to the previous harvest, due to factors including the aging of cane fields and a reduction in the amount of cane that was not processed in the prior harvest and therefore has been growing for nearly two years.

Brazil, Ethanol, Ethanol News, UNICA

Farm, Biodiesel Maker Seek Canola Growers

John Davis

DRM Farms and SunPower Biodiesel have teamed up to find farmers in Wisconsin, Michigan, Minnesota and the Dakotas to grow canola for SunPower’s Cumberland, WI refining operation to make its Premium Cold Flow Biodiesel:

Canola is quite adaptable with regard to soil type, and has shown profitability on marginal crop lands where other crops are not as feasible. It has revealed drought tolerance and preference to cooler temperatures, making canola ideal as a featured or alternative crop in the mid-western region of the United States.

The selling price for the seed will ultimately depend on the quality and current canola commodity values. Other oil seeds, such as sunflower, camelina and flax, will also be considered for purchase.

SunPower Biodiesel is getting some money for the project from the Wisconsin Clean Transportation Program, administered through the Wisconsin Office of Energy Independence and Wisconsin Clean Cities.

Biodiesel

Biodiesel Board Backs Obama’s Backing of Biofuels

John Davis

The National Biodiesel Board has joined the chorus of biofuel groups applauding President Obama’s call for boosting the production of domestic fuels:

“The biodiesel industry is already poised for a record year in which we will displace nearly a billion gallons of petroleum with a renewable fuel produced right here in the United States,” said Manning Feraci, NBB’s Vice President of Federal Affairs. “We are ready and able to meet the nation’s Advanced Biofuel goals and in the process create new jobs, improve the environment and enhance the nation’s energy security.”

As Cindy and Joanna reported earlier, other groups, including the Renewable Fuels Association, Growth Energy, the Biotechnology Industry Organization (BIO), and the Advanced Ethanol Council, have given their support to Obama’s Blueprint for A Secure Energy Future that outlines a comprehensive national energy policy.

“Over the next two years, we’ll help entrepreneurs break ground on four next-generation biorefineries – each with a capacity of more than 20 million gallons per year. And going forward, we should look for ways to reform biofuels incentives to make sure they meet today’s challenges and save taxpayers money,” Obama said.

NBB points out that biodiesel is America’s first advanced biofuel.

Biodiesel, Government, NBB

DF Cast: Community Solar a Good Choice for Individuals

John Davis

Community solar projects have always been good for the environment, but a company in New Jersey is making them pay for individual investments, especially senior citizens living on fixed incomes.

In this edition of the Domestic Fuel Cast, I talk with Pete Ramsey, the Director of Business Development for GeoGenix. He explains that having an entire neighborhood put in a solar project helps realize some economies of scale … being able to have crews simultaneously work on several solar projects, materials, logistics, and things like that. He says doing community solar, as opposed to each individual putting up his or her own panels, also makes a lot of sense for senior citizens, who could realize a return on their investment in less than five years.

Ramsey admits there a lot of factors that go into figuring those returns: how much electricity is already used, the pitch and position of the roof, the type of system the owner wants, and so forth. That’s why he says it’s important to do individual assessments and discuss what system is right for each home.

It’s a pretty interesting conversation, and you can hear more of it here: Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.

Audio, Domestic Fuel Cast, Solar

Ag Secretary Promotes Biofuels for Jobs

Cindy Zimmerman

tom vilsackU. S. Secretary of Agriculture Tom Vilsack made a visit to St. Louis earlier this week where he was the keynote speaker at the St. Louis Agribusiness Club meeting. As part of his address, he noted the importance of biofuels production for rural economies.

Vilsack noted that there are about 600,000 people in rural America who would describe themselves as farmers or ranchers, but who rely on off-farm income to make ends meet. “What do we do for those folks? What we do for those folks is to create more diverse income opportunities. It’s one of the reasons why I’m a big proponent of biofuels and renewable energy,” he said. Vilsack said biofuels create new market opportunities for those farmers. “I know and they know that when we reach 36 billion gallons of renewable energy and fuel in this country we’re going to create a million new jobs in rural communities.’

Vilsack believes that next generation biofuels from agricultural waste will help rural America even more. “That’s why we are focused on making sure we have an expanded biofuels industry. It only makes sense with the instability in the Middle East. Why not try to create opportunities here at home?”

Listen to or download Vilsack’s biofuels comments here: Secy Vilsack in St. Louis

biofuels, Ethanol, Ethanol News, USDA

RFA Analyzes USDA Report for Ethanol

Cindy Zimmerman

Renewable Fuels Association Logo The Renewable Fuels Association (RFA) hosted a webinar this morning to discuss the new USDA Prospective Planting and Grain Stocks reports and what they indicate for America’s supply of corn and how demand from ethanol production might play into food pricing this year.

Some of the main points made by RFA VP of Research and Analysis Geoff Cooper about the reports relative to ethanol and food prices are:

1. The additional corn acreage is coming through crop switching, not land expansion
2. An average 159.7 bushels per acre will maintain current carry-out levels
3. 2011 ethanol production expected at 13.8-14 bg; about 5 billion bushels of corn
4. USDA is likely underestimating ethanol yield
5. On net basis, ethanol using only 23% of the 10/11 corn supply – not 40%
6. Food price inflation expected to be in line with average of 3.4%
7. Energy prices and speculation more important factors in food price increases
8. Corn is a minor cost component of most retail food items
9. Just 12 cents of every retail food dollar goes to the farm level
11. U.S. corn exports have not declined as ethanol use has expanded
12. U.S. ethanol uses 3% of world grain supply; grain not being “diverted” for fuel use

Cooper notes that the USDA prospective plantings report should be taken “with a grain of salt” since it only indicates farmers’ current intentions and will likely change as planting season gets underway.

Link to RFA power point presentation.

Listen to Geoff Cooper’s presentation here: RFA's Geoff Cooper on USDA report

Audio, corn, Ethanol, Ethanol News, Food prices, RFA, USDA