Global Ethanol Leaders Together

Cindy Zimmerman

2011 ethanol conferenceIn the great tradition of saving the best for last, the 2011 National Ethanol Conference concluded with a lively panel discussion featuring global ethanol leaders.

Those on the panel were (LtoR) George Fitch, Director of the Caribbean Basic Ethanol Producers Association; Bob Dinneen, president and CEO of the Renewable Fuels Association; Marcos Jank, president and CEO of Brazil’s UNICA; Robert Vierhout, Secretary General of ePURE, European Renewable Ethanol; and Gordon Quaiattini, president of the Canadian Renewable Fuels Association.

2011 ethanol conferenceModerator Bliss Baker with the Global Renewable Fuels Alliance started the session off with a bang by asking Jank his opinion on the United States tariff on imported ethanol. “I’d like to say ‘happy 30th anniversary’ to RFA,” Jank responded, turning his attention to Dinneen on his right. “I was questioning myself, if after 30 years the industry is not now a mature industry, which means if the industry still needs subsidy or not, still needs a tariff or not.”

Noting that the U.S. is now the largest ethanol producer in the world, Jank said to Dinneen, “I hope that in three years you will be a free trader as we are. It’s time to eliminate the tariff, it’s time to compete.”

The Caribbean’s Fitch challenged Jank’s position on the tariff issue and encouraged Brazil to avoid taking action against the U.S. tariff with the WTO. “The tariff is not WTO actionable,” Fitch said. “So what you’re doing is creating trade hostilities that you don’t need to create.” He suggested instead that Brazil continue marketing ethanol to the U.S. through the Caribbean Basin. “I would think that UNICA might want to use this as an initiative on their part,” he said. Brazil now can have their own Caribbean Basin Initiative to help countries not as advanced as they are … as opposed to getting into what could be a very nasty trade fight by going after the tariff.”Read More

Audio, Brazil, Ethanol, Ethanol News, International, National Ethanol Conference, RFA, UNICA

Overfertilizing Corn Undermines Ethanol

Joanna Schroeder

In a new paper published online in American Chemical Society’s Journal Environmental Science and Technology when it comes to growing corn for ethanol and using fertilizer – less may be more. Postdoctoral researcher Morgan Gallagher led the research team as part of her dissertation at Rice and discovered that corn, and its stalks and leaves, responded differently to nitrogen fertilizer.

The team found that liberal use of nitrogen fertilizer to maximize grain yields from corn crops results in only marginally more usable cellulose from leaves and stems to be converted into cellulosic ethanol. They also found that when the corn is used for food and the cellulose is processed for biofuel, increasing the rate of nitrogen actually makes it more difficult to extract the cellulose, or lignin, which is converted to sugars and ultimately ethanol, from the corn stover and stalks. This is the case because surplus nitrogen fertilizer speeds up the biochemical pathway that produces lignin.

Carrie Masiello, an assistant professor of Earth science at Rice and Gallagher’s adviser believes that the findings of this research are an important next step in building a sustainable biofuel economy. While some nitrogen fertilizer is needed for plants to grow and function, she noted that for some crops, a little is enough.

We already know too much fertilizer is bad for the environment. Now we’ve shown that it’s bad for biofuel crop quality too,” Masiello said. While farmers have a clear incentive to maximize grain yields, the research shows a path to even greater benefits when corn residues are harvested for cellulosic ethanol production.”

The research showed that although increasing nitrogen improves the plant’s cellulose content, grain yield quickly hits a plateau. “The kilograms of grain you get per hectare goes up pretty fast and peaks,” Masiello said. At the same time, the researchers found only a modest increase in plant and stem cellulose, the basic component used to produce cellulosic ethanol.

The implicit assumption has always been that the response of plant cellulose to fertilizer is going to be the same as the grain response, but we’ve showed this assumption may not always hold, at least for corn,” Gallagher said.

These are just a few of the findings of the research and the team hopes that their methods can be transferred to other energy crops. Click here to read the full release.

Cellulosic, Ethanol, Research

70,000 Directly Involved in U.S. Ethanol Industry

Joanna Schroeder

According to an economic analysis from Cardno ENTRIX, unveiled during the 2011 National Ethanol Conference, John Urbanchuk 70,600 Americans are employed directly in the production of ethanol and in industries providing goods and services to ethanol producers. Today, there are ethanol plants either operational or in construction in 29 states, and as a result of the economic activity generated by ethanol production, more than 400,000 Americans have been able to keep their jobs or find new ones.

Also according to the report, ethanol production is contributing to our nation’s financial well-being. In 2010, the report calculated that ethanol production contributed $53.6 billion to the national Gross Domestic Product and added $36 billion to American household incomes. It also discovered that the increased economic activity and income generated by America’s ethanol industry added nearly $12 billion to federal, state and local governments through increased tax revenue.

In another area, the report found that the production of 13 billion gallons of ethanol equated to the importation of 445 million less barrels of oil in 2010 used to refine gasoline. To give you a comparison, this is more oil than America imports from Saudi Arabia annually, and displacing these barrels of oil saved the U.S. $34 billion last year.

“The investments we have made in our domestic ethanol industry are paying dividends in thousands of communities all across the nation,” said Renewable Fuels Association President and CEO Bob Dinneen. “The jobs, economic activity, and energy security benefits we are witnessing today thanks to a commitment to renewable alternatives to imported oil are just scratching the surface. Continued innovation in ethanol technologies along with a renewed commitment to giving Americans more control over their energy future will create hundreds of thousands of more jobs and put America back in business as a leader in energy innovation.”

Ethanol, Ethanol News, National Ethanol Conference, RFA

Alltech Holds Algae Conference

John Davis

Animal health and nutrition leader Alltech recently wrapped up its first conference on algae.

This company press release says the invitation-only conference, entitled “Algae: The Growth Platform,” was the company’s first international conference, drawing 60 attendees from around the world to Lexington, Kentucky:

“This conference is important to the region, to the state, and to the future of science. What science needs is a ‘game changer’ and algae are going to be that ‘game changer’,” said Dr. Pearse Lyons, president and founder of Alltech.

Conference presentations from several of Alltech’s leading researchers were focused on the characteristics and potential uses of algae. There are roughly 800,000 species of algae, which vary greatly in form, function and chemical composition.

Algae can be used in animal feed, food supplements, pharmaceuticals, bioremediation and biofuels. Several of these industries were represented among the international audience and lively group discussions were inspired by the specific challenges and opportunities for algae production in agriculture, environmental and renewable energy applications.

Another part of the conference included Alltech cutting the ribbon on its new algae facility in Winchester, Kentucky, a facility with more than $200 million worth of equipment that will help the company research and perfect commercial operations.

algae

Chief Ethanol Ships 1 Billionth Gallon

Joanna Schroeder

The state of Nebraska’s first ethanol plant, Chief Ethanol Fuels, shipped its one billionth gallon from its plant located in Hastings in Mid-February. One of the first biorefineries in the U.S., Chief Ethanol Fuels opened in 1984 with the capacity to produce ten million gallons per year. In 2011, they are expected to produced nearly 70 million gallons. Today, Chief is a major grain buyer in the state, providing a market for 25 million bushels of corn annually—about 80 percent of the crop grown in Adams County, where the facility is located. In addition to fuel ethanol, the plant also markets high protein distillers grains to local livestock feeders. More than one-third of the corn processed in the plant is returned to the feed sector in the form of distillers grain.

“Chief Ethanol’s long history parallels the growth of the industry across the state and nation,” said Steve Hanson, Chair to the Nebraska Ethanol Board (NEB). “They have a distinguished record of adding value to our abundant corn supplies, providing jobs in their community and helping to drive the agricultural economy of Nebraska.

Hanson continued, “Today, Nebraska is home to twenty-five ethanol plants that produce two billion gallons annually and employ thirteen hundred people. Chief’s success and leadership in the industry are major factors in Nebraska’s rank as the number two producing state in the nation. Without a doubt, renewable, home-grown ethanol is key to the nation’s energy future.”

Todd Sneller, Administrator of NEB added, “Chief Ethanol Fuels continues to invest capital, create jobs and add value to Nebraska agricultural products and the economy. Nebraska is fortunate to host a portfolio of ethanol producing plants that continue to stimulate the economy and stabilize our supply of renewable transportation fuels.”

Ethanol, Ethanol News

Biofuel Industry Urges Senate to Pass Nat’l Security Legislation

Joanna Schroeder

At the close of business on Friday, the biofuel industry urged the Senate to pass legislation that would support energy independence and national security and not energy dependence and the status quo. Growth Energy, joined by the American Coalition for Ethanol, the American Farm Bureau Federation, the Renewable Fuels Association, the National Corn Growers Association, National Farmers Union and National Sorghum Producers, sent a letter to all 100 U.S. Senators urging them to defeat any efforts that would damage the American ethanol industry’s growth.

The letter is in response to a Continuing Resolution that contained two anti-ethanol provisions that was approved by the Congress. The Senate is scheduled to consider a different version of a Continuing Resolution next week but one that does still include provisions that would prevent the U.S. Environmental Protection Agency from implementing its approved waiver for E15 ethanol blends and prohibit construction of blender pumps and ethanol storage facilities. The ethanol industry argues that both measures would deepen our addiction to foreign oil and further hurt our economy by limiting consumer access to the only commercially viable fuel alternative to foreign oil: American ethanol.

In the letter, they wrote, “American ethanol is uniquely positioned to help America achieve energy independence. Domestic ethanol production has been and is currently a major force in the revitalization of rural America by helping to create green jobs and by stimulating economic activity in rural communities.”

Read the letter: Read More

Ethanol, Ethanol News

Kenny Wallace & RAB Racing Partner With American Ethanol

Joanna Schroeder

American Ethanol has officially become an associate sponsor of RAB Racing with Brack Maggard. The No. 09 Toyota Camry driven by Kenny Wallace will feature the American Ethanol logo on the hood of its car for the 2011 NASCAR Nationwide season beginning this weekend with the Feb. 26, BASHAS’ SUPERMARKETS 200 race at the Phoenix International Raceway. In Phoenix the American Ethanol logo will be displayed alongside “Family Farmers.” Family Farmers is a multi-state coalition of farmers and agribusiness that will be sponsoring Wallace and the No. 9 can in five Nationwide races this season.

“Getting to know the hard working family farmers of this country has been a fantastic experience for me,” Wallace said. “I’m so excited to be a spokesperson for them, sharing true knowledge about what they do and the products and food that are made from their crops. The best part is that I’ve come to understand that our nation’s farmers are just like you and me. They want what’s best for their families, just like us. And like me as a NASCAR driver, they are responsible for their own work and take that responsibility very seriously. I’m humbled that they’ve chosen me to be an advocate for them with dedicated racing fans.”

The agricultural and ethanol industry joined together with NASCAR to further the message of ethanol’s benefits – a message that is expected to reach more than 80 million people throughout the season.

“We are thrilled to welcome Kenny Wallace as an official spokesman for American Ethanol on behalf of America’s green, clean alternative fuel component. Kenny is one of the most visible and popular drivers in Nationwide,” said Bart Schott, National Corn Growers Association president. “He comes from Missouri and truly appreciates the important role of corn farmers in providing consumers with a domestic fuel choice.”

Tom Buis, CEO of Growth Energy added, “RAB Racing with Brack Maggard and Kenny Wallace are great additions to the American Ethanol team. His enthusiasm for ethanol is obvious so he is a great spokesperson to carry ethanol’s positive messages of creating American jobs, cleaner air, and strengthening our national security by making our nation more energy independent.”

American Ethanol, Ethanol, Growth Energy, NASCAR, NCGA, Racing

Enervation to Open Second Iowa Biodiesel Plant

John Davis

A company that is bringing one idled biodiesel plant in Iowa back to life is working one getting a second one operational.

The Keokuk (IA) Daily Gate City reports that Enervation, which is already getting the former Tri-City Energy plant back up to speed (see Joanna’s post from Jan. 25, 2011), has acquired a 60 million gallon per year biodiesel plant in Algona, Iowa:

After months of negotiations, Enervation’s founders, Paul Tantillo and William Dollard have come to an agreement to purchase the Algona biodiesel plant from the bank for an undisclosed amount. The 60 million gallon per year plant completed in 2007 never became operational and requires a significant amount of work to conform to the Enervation plan for the property, Tantillo said.

Enervation is now reviewing the existing permits and licenses, while the engineering team works to produce a more definitive plan to bring the plant up to the desired specifications. Enervation also intends to add additional components to the facility to create additional revenue.

“While the plant as it stands cannot produce positive cash flows, we have a strategic plan for the Algona location that enables the facility to thrive and to fulfill its promise to the community for the jobs so sorely needed in the area,” Tantillo said.

Enervation’s founders also say they want to make the biodiesel plants work without any government grants or the federal $1-a-gallon biodiesel tax credit.

Biodiesel

Mr. Peanut to Ride on Biodiesel

John Davis

Look for Mr. Peanut to come to a neighborhood near you riding in his biodiesel-powered Planters Nutmobile!

As part of its sustainability efforts, Planters has launched its Naturally Remarkable campaign to highlight the company’s efforts to work and act more green. From Mr. Peanut’s Facebook page:

“Not only does the new Planters Nutmobile run on biodiesel, it harnesses the power of sunlight and wind. Just like me. Everyday.”

For more on Planters’ sustainability efforts and biodiesel-fueled Naturally Remarkable Tour, check out the company’s website.

Biodiesel

USDA Considering Biofuel Crop Insurance Program

Joanna Schroeder

USDA Secretary Tom Vilsack announced today that the USDA will soon be accepting proposals to study the feasibility of providing crop insurance to producers of biofuel feedstocks ranging from corn stover to straw to woody biomass. The feasibility studies will be funded by the Risk Management Agency (RMA) and will be combined with current studies underway for energy cane, switchgrass and camelina.

“Providing additional risk management tools for American farmers to produce advanced biofuels crops is an important step toward developing a thriving biofuels industry and reducing our dependence on foreign oil,” said Vilsack. “Renewable energy development contributes to the Obama Administration’s effort to ‘win the future’ by supporting America’s farmers as they grow and harvest materials that can be converted into renewable energy. This effort creates new jobs and opportunities for those who live in rural America.”

These studies will help determine ways to mitigate risks to growers who grow biomass crops for biorefineries and research facilities, companies and public-private partnerships who are in the process of developing technologies to commercialize advanced biofuels. Two contracts will be funded by USDA. Those interested in applying should refer to the solicitations which will be available on FedBizOpps or on RMA’s website.

biofuels, biomass