Ethanol Report on World Supply Demand Estimates

Cindy Zimmerman

Ethanol Report PodcastThe February USDA World Agriculture Supply and Demand Estimate (WASDE) report out today includes some revisions in grain use numbers. This edition of the Ethanol Report podcast with Renewable Fuels Association Vice President of Research Geoff Cooper takes a look at those numbers and provides some perspective from the ethanol industry standpoint.

For U.S. corn supplies, USDA lowered its forecast of marketing year ending stocks to 675 million bushels, down 70 million bushels from the January estimate. The change comes from slight increases in the estimates of corn for ethanol use and sweetener/starch use. Globally, USDA is estimating a slightly smaller grain (wheat, rice, corn, etc.) supply than last year’s record amount of more than 2.7 billion metric tons. “People lose sight of the global picture of the grain markets,” Cooper says. “The fact of the matter is, the global grain supply remains very strong.”

Cooper says RFA believes USDA may be slightly overestimating corn for ethanol use, even though export demand prospects remain strong. “Even if we do assume that we export 300 or 400 million gallons of ethanol in this marketing year, that still means the domestic market is going to need to absorb the remaining 13.3 or 13.4 billion gallons, which seems unlikely given the E10 blend wall and the fact that E15 hasn’t really penetrated the market yet.”

The estimates are likely to re-ignite the food versus fuel debate, but Cooper notes that higher prices will likely mean farmers will plant more corn this year. “It’s a basic concept that farmers respond to price signals,” he said.

Listen to the Ethanol Report here: Ethanol Report on February WASDE

Audio, Ethanol, Ethanol News, Ethanol Report, RFA, USDA

National Biodiesel Conference Wraps Up

Chuck Zimmerman

NBB Membership MeetingThe 2011 National Biodiesel Conference has been a scene of optimism for the industry. To wrap things up I spoke with Donnell Rehagen, COO, National Biodiesel Board. He says that we had approximately 1,100 in attendance and it looked like business was getting done.

Yesterday NBB held its annual membership meeting and approved projects and a plan that will begin this fall. This gives the staff a “play book” to execute initiatives from market development to governmental affairs.

So let’s look forward to next year when the conference will take place in Orlando, FL!

You can listen to my interview with Donnell here: Interview with Donnell Rehagen

2011 National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference, NBB

Commodity Price Expectation

Chuck Zimmerman

It looks like there’s a very high expectation among our various audiences that commodity prices will go higher. You haven’t sold all of last year’s soybeans have you! We asked the question, “Will commodity prices be higher or lower a year from now?” Overwhelmingly, 70% said higher while 21% said about the same and only 9% lower.

Our next ZimmPoll is now live and asks the question, “What smartphone platform do you use” The Apple iPhone is now available from Verizon. I wonder if this will change things. Let us know and thank you for participating.

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

ZimmPoll

Florida Advanced Biofuels Plant Breaks Ground

Cindy Zimmerman

A new commercial scale advance biofuels plant broke ground today in Vero Beach, Florida.

The $130 million plant is being developed by INEOS New Planet BioEnergy (INPB), a joint venture between INEOS Bio and New Planet Energy. The Indian River BioEnergy Center in Vero Beach, Florida, will convert yard, vegetative and household wastes into cellulosic ethanol and renewable power for the local community.

“We are excited to celebrate this important milestone, which moves advanced biofuels a step closer to achieving significant scale, enabling the U.S. to achieve a leading position in the bioenergy sector,” said Peter Williams, Chairman of INPB and CEO of INEOS Bio. “As part of our goal of advancing the biofuels industry, educating people about the benefits of this technology and creating demand for advanced biofuels, we will continue to license this world-changing technology to partners across the U.S. and beyond, bringing secure, renewable fuel and power to communities worldwide.”

When production starts in mid-2012, the Indian River BioEnergy Center will produce eight million gallons of bioethanol and six megawatts (gross) of renewable power, of which approximately two megawatts will be exported to the local community. This renewable electricity will be able to power approximately 1,400 homes. Located at a former citrus processing plant site in Vero Beach, Florida, the BioEnergy Center will provide 380 direct and indirect jobs (including 175 construction jobs) over the next two years and 50 full-time jobs in Indian River County where, current unemployment is at 13.6 percent, the 23rd highest metro area in the nation.

bioenergy, biofuels, Facilities, Waste-to-Energy

Wind Powers the Super Bowl

John Davis

Despite being indoors, there was plenty of wind used during Sunday’s Super Bowl (no, I’m not talking about Joe Buck yammering on). The electricity used to power everything from TV cameras to the massive jumbo screen has been offset by the purchase of wind energy credits from a wind farm in Texas.

This story from Environment News Service says the deal is an agreement between between Just Energy, the National Football League and the North Texas Super Bowl XLV Host Committee:

Just Energy will purchase renewable energy certificates on behalf of the Super Bowl to offset all direct and indirect carbon emissions associated with power generation at major Super Bowl XLV venues.

This includes energy consumed at Cowboys Stadium for the month leading up to Super Bowl XLV, electricity used at National Football League Super Bowl headquarters, the Super Bowl Media Center, the AFC and NFC team hotels, and the electricity used at the NFL Experience Football Theme Park – the largest public event at Super Bowl XLV.

“We’re thrilled to be chosen by the NFL to play a key role in the greening of the world’s most significant annual sports championship,” said Ken Hartwick, chief executive of Just Energy. “Every day we see more organizations and more people becoming greener in their habits. We see this as a powerful opportunity to join the NFL and lead by example before a global audience.”

Just Energy also provided renewable energy certificates for the recent Pro Bowl in Hawaii.

Wind

Nation’s First Industrial Park to Supply Hydrogen Opens

John Davis

The nation’s first multi-use industrial park fueling station to supply hydrogen directly for industrial, commercial, and government use has opened in South Carolina.

Logistics provider GENCO ATC has partnered with customers Kimberly-Clark Corporation, Plug Power Inc., Air Products, and the Aiken-Edgefield Development Partnership to launch the facility:

The fueling station supplies hydrogen directly to Kimberly-Clark’s 450,000-square-foot distribution facility managed by GENCO ATC to be used with fuel cells powering Toyota forklifts. Both the fueling station and the Kimberly-Clark facility are located in Sage Mill Industrial Park, Graniteville, South Carolina.

A ribbon-cutting ceremony and technology demonstration will take place inside the Kimberly-Clark facility on Friday, February 11, 2011 at 11 a.m. and will feature several executive speakers and Bobby Harrell, Speaker of the South Carolina House of Representatives.

“Kimberly-Clark is constantly looking for innovative ways to minimize the impact of our operations on the environment,” said Rick Sather, Vice President of Customer Supply Chain at Kimberly-Clark. “We are pleased to partner with GENCO ATC, Plug Power and Air Products to help expand hydrogen fuel cell technology to our entire forklift fleet. This energy technology can reduce our carbon emissions by hundreds of metric tons per year, lower costs and drive efficiencies to power our operations.”

The project got some help from $1.1 million of a $6.1 million cost-share award made to GENCO ATC by the U.S. Department of Energy.

Hydrogen

AWEA: Wind Energy Cost Competitive with Natural Gas

John Davis

One of the big knocks against alternative forms of energy is that they are not cost competitive to more traditional counterparts. However, the American Wind Energy Association (AWEA) now contends that wind energy generation costs about the same as natural gas.

And this article from ClimateCentral.org says despite a tough year for new wind energy installations, the group is looking forward to a much better future:

Experts have suggested that natural gas, with its apparently smaller climate impact and widespread availability within the United States, could temporarily replace coal on our way to a cleaner energy future. But recent reports have called some of gas’s benefits into question; could the economics and the science suggest a coming turn against the so-called “bridge fuel?”

[AWEA’s director of industry data and analysis Elizabeth] Salerno points to several recent power purchase agreements where wind power has been sold in the surprisingly low range of five to six cents per kilowatt-hour, as well as independent industry data, to suggest wind’s growing competitiveness with natural gas. The government, though, doesn’t quite agree on the claim of cost parity: the most recent Energy Information Administration estimates place the cost of a new onshore wind installation at 9.7 cents per kilowatt-hour, and a new advanced cycle natural gas plant at 6.3 cents per kilowatt-hour.

“Cost parity is the holy grail of renewable energy,” says Michael Livermore, executive director of New York University’s Institute for Policy Integrity. “But there is cost parity with subsidies, and there is cost parity without subsidies. If this is happening without subsidies, then that means that wind power is going to explode, regardless of what the government does. I doubt that’s what really is going on.”

AWEA’s statement of competitiveness with natural gas does include the federal incentives for wind power, primarily the renewable energy production tax credit. The credit can lower the price of wind power by 2.2 cents per kilowatt-hour, and is currently set to expire at the end of 2012. Including this straightforward subsidy, and excluding various other factors from the wind power economics equation can lead one to make the claim of cost parity, some experts say.

Wind energy proponents say they need more consistent government policies … and less federal incentives for the petroleum industry … to stay competitive.

Natural Gas, Wind

Ethanol Gets Seat on California LCFS Panel

Cindy Zimmerman

Renewable Fuels AssociationRenewable Fuels Association (RFA) Vice President of Research and Analysis Geoff Cooper has been selected to represent the ethanol industry on the California Air Resources Board’s (CARB) Low Carbon Fuels Standard (LCFS) Advisory Panel. Panel members will participate in periodic reviews of the LCFS program and provide input on issues related to implementation of the LCFS. The first panel meeting is scheduled for Feb. 16 in Sacramento.

“California has always been an important market for biofuels like ethanol,” Cooper said. “The LCFS will have significant implications for the future role of ethanol in the state. That’s why it’s important that the ethanol industry has a seat at the table for these discussions. I look forward to participating in the process.”

Specifically, the topics addressed by the advisory panel will include the program’s progress against LCFS targets, possible adjustments to the compliance schedule, lifecycle assessments, advances in fuels and production technology, fuel and vehicle supply availability, the program’s impact on the state’s fuel supplies, and other issues. The panel will provide comments to CARB staff for incorporation into reports that will be submitted to the Board regarding implementation of the program. Along with the staff’s assessment, the report will include panel findings and recommendations.

Ethanol, Ethanol News, RFA

New Holland Still Showing Strong Support For Biodiesel

Chuck Zimmerman

New Holland Boomer 8NWhy is there a New Holland Boomer 8N photo on here when talking about the National Biodiesel Conference? Because the company is once again a conference sponsor of the media room I’ve been working out of and the Biodiesel Conference Blog that ZimmComm New Media is helping manage for the 6th year!

I want to say a big thanks to New Holland for their support and in particular to Gene Hemphill, past Eye on Biodiesel Award winner. I spoke with Gene about New Holland’s support for the industry. He reminded me of a trip I took with him and NBB CEO Joe Jobe to Jay Leno’s Garage where we met Jay and learned about his support of biodiesel. It sounds like there might be some new developments with Jay and biodiesel brewing! That’s where the Boomer 8N comes in as you’ll hear him say in our interview.

New Holland recognizes the importance of biodiesel as an alternative source of energy and the opportunities that it brings to our customers. We were the first agricultural equipment brand to fully embrace the potential of biodiesel. As the clean energy leader, we support our customer’s fuel choices, and that’s why we provide products with the flexibility to confidently run on everything from plain diesel to 100% biodiesel.

You can listen to my interview with Gene here: Gene Hemphill Interview

2011 National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference, NBB, New Holland

Positive Legislative Outlook For Biodiesel

Chuck Zimmerman

Manning FeraciDuring the last general session of the National Biodiesel Conference we got the legislative outlook from Manning Feraci, Vice President for Federal Affairs for the National Biodiesel Board. He talked about advancing to the next level of effectiveness in the capitol halls of America.

You can find some current resources regarding legislative issues on the NBB website:

* Renewable Fuel Standard – RFS-2 Action Center
* October 3, 2008 Tax Extender’s Package
* Tax Incentive
* Farm Bill
* Renewable Identification Numbers (RINs)
You can listen to Manning’s remarks here: Manning Feraci Remarks

2011 National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference, NBB