Canadian Biodiesel Mandate to Start July 1st

John Davis

All diesel fuel in Canada … for heating and transportation … will be required to have at least a 2 percent blend starting July 1, 2011.

This article from Reuters says this requirement joins the country’s 5 percent renewable content in gasoline:

Industry and investors had grown impatient waiting for word on the proposed regulatory change for diesel. The government said it needed proof from demonstration projects that biodiesel could perform under Canadian conditions before it set a start date.

The combined renewable fuel requirements will reduce greenhouse gas emissions by up to 4 megatonnes, the government said, equivalent to taking 1 million vehicles off the road.

Currently, Canada produces about 200 million litres (52 million gallons) of biodiesel annually. It will need about 550 million litres (145 million gallons) to meet government quotas.

“This is a milestone day for homegrown renewable biodiesel in Canada,” Canadian Renewable Fuels Association president Gordon Quaiattini said.

“It will help moderate price by adding to our fuel supply, create new jobs, and benefit farmers and drivers alike.”

The mandate could end up being a boon for the U.S. biodiesel industry. Right now, about 75 percent of biodiesel produced in Canada is sent to America. But with the new mandate, more of that will have to stay home, and possibly, the Canadians might have to get some biodiesel from their friends to the south to meet the requirement.

Biodiesel, Government, International

USDA Deregulates Corn Trait for Ethanol

Cindy Zimmerman

SyngentaSyngenta Seeds announced today it has received full deregulation from USDA for corn amylase (Event 3272), the first corn output trait designed to help ethanol industry become more efficient, profitable and environmentally friendly.

According to a company release, Syngenta Seeds plans to sell corn containing Event 3272 under the “Enogen” seed brand. “Enogen corn is a breakthrough product that provides ethanol producers a proven means to create more value per gallon while offering targeted corn growers an opportunity to cultivate a premium specialty crop in a contracted, closed production system,” said David Morgan, president of Syngenta Seeds. “Also, Enogen corn can substantially reduce the energy and water consumed and the carbon emissions associated with ethanol production.”

The Enogen corn amylase trait is the first genetically modified output trait in corn for the ethanol industry. By enabling expression of an optimized alpha-amylase enzyme directly in corn, the Enogen trait improves dry grind ethanol production in a way that can be easily integrated into an ethanol production plant’s existing infrastructure. Further, Enogen corn is another innovative product that can provide the right growers more choice for their farms and help keep rural communities strong.

“The adoption of Enogen grain by U.S. ethanol producers can unleash a cascade of efficiency and environmental benefits industry wide,” said Morgan. For example, in a 100-million gallon plant, efficiency improvements enabled by Enogen grain can save 450,000 gallons of water, 1.3 million KWh of electricity and 244 billion BTUs of natural gas, the equivalent power to heat several thousand homes while reducing carbon dioxide emissions by 106 million pounds.

Enogen grain has been tested extensively at Western Plains Energy (WPE), in Oakley, KS. The most visible result for WPE has been an eight percent increase in ethanol production combined with an eight percent reduction in natural gas consumption. “What that means for us is more profits, with less expense,” said general manager and CEO Steve McNinch, “And there are no ‘gotchas’ for the plant either.”

corn, Ethanol, Ethanol News

USDA Changes to Rules to Help Biofuels

John Davis

The U.S. Department of Agriculture has changed some of its rules that will help the bifuels industries, and, in turn, help create jobs in rural America and increase the production and use of renewable energy.

The changes will allow non-rural areas to get funding and remove prior citizenship requirements for borrowers under the Biorefinery Assistance Program, the Repowering Assistance Program and the Bioenergy Program for Advanced Biofuels:

Biorefinery Assistance Program:
This program supports the development and construction of commercial-scale biorefineries and the retrofit of existing facilities using eligible technologies. The changes increase the maximum loan guarantee percentage in certain circumstances; add “refinancing” as an eligible project purpose under certain conditions.

Repowering Assistance Program:
The program makes payments to eligible biorefineries to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to provide heat or power in the operation of the biorefineries. These payments are provided to biorefineries that were in existence when the Farm Bill was enacted. The changes allow participating biorefineries to request and receive reimbursement payments for eligible project costs during construction and require that the applicant provide information on any biobased product produced at the facility. This is in addition to providing information on biofuel production.

Bioenergy Program for Advanced Biofuels:
Under this program, USDA Rural Development enters into contracts with advanced biofuel producers to pay them for the production of eligible advanced biofuels. To be eligible for payments, advanced biofuels produced must be derived from renewable biomass, excluding corn kernel starch, in a biorefinery located in a state. The interim rule adds to the definition provisions for determining whether an advanced biofuel producer of biogas or solid advanced biofuels is a “larger producer” or a “smaller producer.” The rule also deletes the term “biorefinery” and replaces it with “biofuel facility” to clarify that eligible advanced biofuels may be produced at facilities other than biorefineries.

“These changes contribute to the Obama Administration’s effort to revitalize our rural economy and meet our energy challenges,” [Agriculture Secretary Tom] Vilsack said. “It’s part of our effort to ‘win the future.’ USDA’s renewable energy programs provide new sources of farm income, increase domestic energy production and develop a domestic renewable energy industry which will create jobs and reduce America’s dependence on imported oil.”

The rule changes for the Repowering Assistance Program and the Bioenergy Program for Advanced Biofuels are in the federal register today, and the rule for the Biorefinery Assistance Program is expected to be published on Monday.

biofuels, Government, USDA

Growth Energy Responds to Ethanol Attacks

Cindy Zimmerman

Once again, ethanol is being attacked by the national media for causing food shortages.

In a Washington Post editorial today, long-time ethanol opponent Tim Searchinger writes about “How biofuels contribute to the food crisis.” While admitting the “2008 food crisis” resulted from a number of causes, Searchinger said, “We should recognize the ways in which biofuels are driving it.”

Growth Energy chart
In response, Growth Energy released a chart showing ethanol’s small slice of total global grain supplies and CEO Tom Buis said Searchinger used the op-ed to defend his “indirect land use scheme.”

“Ethanol is both a food and a fuel business. What is ignored in this piece is that every ethanol plant in the country turns out animal feed as well as fuel – we only take the starch out of the corn kernel but put all the protein, fiber and oils right back into the food supply as ‘dried distillers grains.’ Even then, ethanol’s use of the global grain supply is a fraction,” said Buis. “The notion that ethanol is causing today’s food crisis ignores reality: the reality of the market, the reality of global trade agreements, the reality that other countries have their own domestic farm policies, and the reality that Wall Street’s rampant speculation is driving up food prices.”

Growth EnergyBuis and Todd Becker, CEO of Green Plains Renewable Energy, held a telephone press conference this morning to address the issue.

Becker noted the reasons our country should be very supportive of ethanol. “Ethanol today, without the tax credit, is the cheapest motor fuel in the world that you can buy today,” he said. “We’re even cheaper than Brazilian ethanol today because we can make it more competitively than they can.”

Noting the importance of low cost distillers grains as livestock feed, Becker said, “When you talk about 40% of the corn kernel that goes right back into the feed supply, ethanol doesn’t just fuel, it feeds America as well. “Anybody that says that we’re not contributing that we’re not contributing to cheaper food supplies doesn’t understand the full equation.”

Listen to the press conference here – Becker’s comments start at about 22 minutes in when he joins the call. Growth Energy Press Conference

Audio, Ethanol, food and fuel, Growth Energy

Get The National Ethanol Conference App

Chuck Zimmerman

Apps for trade shows and conferences are becoming more and more popular. The next one I’ll be using is the National Ethanol Conference App in Phoenix. I hope the weather is as nice as it was for the National Biodiesel Conference this week!

* Get 24 hour access to unique, on-the-go information, maps and networking.
* Organize your schedule.
* Navigate using the conference map.
* Stay in the know with important alerts and the most up-to-date event schedule.
* Download speaker and sponsor information.

Download the App! It’s FREE.

Instructions:

For iPhones, iPod Touch and iPad: From your phone, visit the App Store and search for NEC 2011.

For Blackberry, Droid and all other smartphones: From your phone, point your mobile browser to http://m.core-apps.com/nec2011 (the system will determine your phone type for proper download for your device). Then bookmark this page on your phone for easy future access.

Ethanol, Ethanol News, National Ethanol Conference

Solar Acquisition Corp., GNE Ink Algae-Biodiesel Deal

John Davis

Solar Acquisition Corp. and Global Natural Energy Cyprus Ltd have signed a deal to form joint venture, GNE USA, that will produce algae-based biodiesel.

This press release says the agreement should be finalized in the next two months:

“GNE-USA will come out of the gate with a strong competitive advantage in its exclusive right to the GNE patented technology,” said Bruce Levy, SLRX director. “We expect GNE-USA to have high volumes and low costs driven by this technology.”

GNE-USA will use GNE’s patented algae growing systems to produce bio-diesel oil. “After 10 years of research, GNE has achieved the first commercially viable algae systems for bio-fuel,” said GNE CEO Chaim Lieberman.

The GNE systems both reduce the cost of growing the algae and significantly reduce the costs of extracting the oil used for diesel fuel production.

Company officials say their system is much more advanced than their competition. The deal will also give the new company years of experience in the algae farm and alternative energy markets.

algae, Biodiesel

Alltech Conference: Future of Algae-Biodiesel & More

John Davis

Animal nutrition company Alltech will be holding its first annual International Algae Conference, February 22-24, 2011 at the Hyatt Regency Hotel in Lexington, Kentucky:

[E]ntitled Algae: The Growth Platform, [the conference] will be dedicated to discussing the technological revolution of algae fermentation, including biodiesel, bioremediation, carbon sequestration, and application to both novel pharmaceutical products and animal nutrition.

The conference will also feature a tour of Alltech’s new world-class algae production and research facility, one of the largest in the world. The good folks at Alltech are also making sure that media not able to attend the conference will still be able to go on the plant tour on Feb. 23rd. RSVP to tspicer@alltech.com. More information and conference registration are available here.

algae, Biodiesel

USDA Guarantees South Dakota Wind Loans

John Davis

A South Dakota wind farm will receive U.S. Department of Agriculture loan guarantees that will help build 100 wind turbines providing 151.5 megawatts of electricity.

This USDA press release says the money will help Basin Electric Power Cooperative build the PrairieWinds wind farm energy project in central South Dakota that will join the cooperative’s other electric generation projects to meet the needs of 2.8 million customers served by 135 distribution systems in nine states:

“The investment announced today will help us ‘win the future,’” said [Agriculture Secretary Tom] Vilsack. “Capturing and converting wind to electricity will create jobs, reduce our reliance on imported energy, and build a reliable source of renewable energy for generations of rural Americans.”

In 2001, Basin Electric developed its first wind project – two turbines just north of Chamberlain S.D., followed by another two turbines south of Minot, N.D. Since then Basin Electric has developed more than 450 megawatts of power in the Dakotas, including several projects with NextEra Energy Resources. In 2009, Basin Electric subsidiary PrairieWinds ND 1, Inc. completed the largest wind project in North Dakota. That project has a capacity of 120 megawatts. When the South Dakota project is completed, Basin Electric will have more than 700 megawatts of wind generation in its portfolio.

The South Dakota project is a model of public and private investment partnership. The Wind Partners announced in late September they had raised the $16.8 million required from South Dakota investors for their part of the project, along with 32 separate rural land owners who participated by providing lease easements. PrairieWinds will construct the turbines for the Wind Partners and operate them. Through PrairieWinds, Basin Electric will purchase the electricity produced. A $204 million loan guarantee will be funded by USDA Rural Development’s Rural Utilities Service. The Loan Guarantee is for 60 percent of the total $340 million project costs. Funding is contingent upon meeting the conditions of the guaranteed loan agreement.

Government, USDA, Wind

American Ethanol has NASCAR Racing Partner

Cindy Zimmerman

American Ethanol has entered into a sponsor partnership with Richard Childress Racing and its No. 33 Chevrolet driver, Clint Bowyer, for the 2011 NASCAR Sprint Cup Series season.

Growth Energy Clint BowyerAmerican Ethanol will be the primary sponsor of the No. 33 Chevrolet car at the June 5th Kansas Speedway 400 and an associate sponsor of the car for the rest of the season. Bowyer, who is a native of Kansas, will serve as an official spokesman for American Ethanol this season.

“Born and raised in the Midwest, it’s truly an honor to support American farmers as they strive to develop energy independence for our country,” said Bowyer. “I look forward to representing American Ethanol both on and off the track beginning this weekend in Daytona.”

Growth Energy and the National Corn Growers Association are the primary organizations behind the creation of American Ethanol, the coalition that signed a partnership agreement with NASCAR to promote the use of domestically-produced ethanol from both corn and cellulosic biomass.

corn, Ethanol, Growth Energy, NASCAR, NCGA

Comments on USDA Supply Demand Report

Cindy Zimmerman

There were not many changes in the February World Agriculture Supply and Demand Estimate (WASDE) report out today, except in the corn department. Corn used for ethanol is projected 50 million bushels higher on a higher-than-expected November final ethanol production estimate and weekly ethanol data that indicate record output for December and January.

USDA chief economist Joe Glauber says ethanol plants are using more corn than expected, almost 8.5 percent more than last year. “The (ethanol) production levels themselves suggest that we’re producing at a level above the mandated levels under the Renewable Fuels Standard,” Glauber told USDA Radio. “For corn use this is obviously a record and it now probably accounts for at least 40 percent of the corn use at least this year.”

Ethanol interests are concerned that the report may flame the food versus fuel debate fire again, despite the fact that farmers are likely to respond to higher corn prices by planting more than enough corn this year to meet all needs.

“I have said it before and it looks like I will say it again, America’s farmers are second to none when it comes to production,” said Growth Energy CEO Tom Buis. “Our farmers are getting more corn out of every acre thanks to better science in seeds, precision farming, and technology and they will continue to meet our nation’s demands for food, feed and fuel.”

National Corn Growers Association President Bart Schott agrees in a new NCGA editorial on food versus fuel. “We are growing more corn on each acre, thanks to technology in the seed and practices on the farm. And we will do so for years to come,” writes Schott. “In 2010, U.S. growers reached an average yield of 152.8 bushels per acre. In 2000, it was 136.9 bushels per acre and in 1990 the average yield was 118.5. Some seed companies and others think we can reach 300 bushels per acre.”

Even if the report is overestimating corn for ethanol use, as the Renewable Fuels Association believes, RFA’s Matt Hartwig says it will still have an impact on the commodity market and prices. “These revisions will add fuel to the speculative fire, likely pushing prices for corn and other commodities higher. Many will use strong ethanol demand as the rationale to drive the price of corn futures as high as the market will bear. In turn, this will likely cause ill-informed industries and talking heads to pronounce U.S. ethanol production as the root cause of food inflation the world over.”

corn, Ethanol, Ethanol News, Growth Energy, NCGA, RFA, USDA