ACE Conference 2026

CHS Energy Remains Bullish on Ethanol

Cindy Zimmerman

CHSCHS Energy is bullish on ethanol.

That’s according to CHS Energy Director of Sales Mark Fenner, who was giving interviews at the recent National Association of Farm Broadcasting meeting in Kansas City. “We don’t know about the tax incentives, but even without it, I think we’re going to see strong use for ethanol because it is less expensive than traditional gasoline, so when you blend it – whether at E15 or E10 – it does lower the price,” said Fenner.

CHS Energy is part of a national diversified company owned by farmers, ranchers and cooperatives that operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex brand refined fuels, lubricants, propane and renewable energy products. Fenner says the move to a 15 percent ethanol blend for some vehicles is very positive for agriculture, but it does present challenges for retailers. “Our stance was could we look at an E12 where every vehicle could use that and retailers wouldn’t have to split the islands based on newer or older cars,” he said.

CHS also distributes biodiesel and Fenner says that market is less positive for them at the moment. “The flat price of biodiesel compared to traditional diesel has been a big hindrance. We just haven’t seen the demand in that product that we had hoped to see,” he said. “We’re an agricultural-owned company so we wanted to see that product take hold, but it’s just difficult.” He says they still sell a good bit of biodiesel, but it continues to be a struggle.

Listen to a short interview with Mark Fenner here: CHS Interview

Biodiesel, Ethanol, Ethanol News

Loss of Tax Break Prompts Dumping of Biodiesel Plant

John Davis

The loss of the federal $1-a-gallon biodiesel tax incentive is part of the reason a green energy company has decided to give its biodiesel plant to creditors.

The Dallas Morning News reports that GreenHunter Energy Inc. made the move to give its Houston biodiesel plant to its debt holders to avoid being delisted by the New York Stock Exchange:

GreenHunter said that it transferred all of the ownership shares of its GreenHunter Biofuels Inc. unit to a trust for holders of its 10 percent debentures due in 2012. GreenHunter had defaulted on the notes, and the company’s Houston refinery was collateral for the loan.

The stock exchange had threatened to remove GreenHunter from its NYSE Amex Equities listing if the company didn’t improve its financial condition, and the deadline is next week.

“The reason we waited so long was because we were trying to exhaust all options,” said Jonathan Hoopes, GreenHunter chief operating officer. He said he has been talking to companies that considered buying the refinery, but he couldn’t work out a deal.

The refinery faced a slew of problems. It was battered by Hurricane Ike and faced an import tariff on biofuels to Europe, Hoopes said, and the U.S. allowed a crucial biofuel tax credit to expire.

“Here we sat on a plant that could literally manufacture one-fifth of the nation’s biofuel needs,” but, he said, the company couldn’t afford to repair the refinery.

The article goes on to point out that many other biodiesel companies are in the same boat, losing market share due to the idling of refineries across the country while they wait for Congress to renew the credit.

Biodiesel, Government, Legislation

Holiday Travel Underscores Need for Electric Vehicles

John Davis

The long Thanksgiving Day holiday weekend is underscoring the need for more electric vehicles on the nation’s roads.

This article from Public News Service uses the example of North Carolina, where more than half a million families are traveling this weekend, spending about $12.4 million on gasoline. And that number will be even higher nationwide:

Electric cars have long been talked about, but are now poised to enter the mainstream with Nissan putting out their first all-electric car this fall — the Leaf. The ad campaign has environmental groups like Environment North Carolina excited over the potential impact on consumer opinion of alternative fuel sources for cars. Locky Stewart, field analyst for ENC explains why electric cars have such potential.

“I think it’s fantastic that that’s happening because in order for electric cars to have an impact, we need to really get them into consumers’ garages.”

A separate analysis by the Natural Resources Defense Council and the Union of Concerned Scientists found the 60 miles per gallon fuel efficiency standard for cars by 2025 would save North Carolina drivers $3.5 billion at the gas pump in 2030. Steward explains.

“Gas powered engines are really inefficient. Only 13 percent of the energy created by burning gas in an engine goes to moving that car forward, and that creates a lot of global warming pollution.”

The Chervrolet Volt, an extended range plug-in electric car, is also launching this year with several more electric cars planned by auto manufacturers by 2012.

The biggest issue is getting the infrastructure in place to have the charging stations available so these electric vehicles have their own fuel to run. Check out my Domestic Fuel podcast from August 25, 2010 for more on this topic. Also, see Joanna’s recent review of the book Jolt! for more on how electric vehicles are coming of age.

Electric Vehicles

Turning that Fried Turkey Grease into Biodiesel

John Davis

While the Thanksgiving Day feast might be behind you … except for the leftovers (I’m reminded of the Christmas Story lines where the narrator bemoans the loss of all the turkey-based leftovers when the neighbors’ hounds make off with said turkey – funny stuff!) … there might be one more leftover that you can’t quite put in the freezer for consumption later – the grease from frying the turkey. Frying turkey instead of roasting it has become a popular option (and thanks to my brother Bruce the method we chose to have our bird this year), but it leaves gallons of leftover oil that too many times ends up in the trash or sewer. Well, if you’re one of the many who have chosen the fried method, why not consider recycling that used grease into biodiesel?

The oil makes an excellent feedstock for the green fuel. If you’re a home biodiesel brewer, you already have all the equipment and know-how. But if you don’t make your own biodiesel, many communities across the country are offering free drop-off of your used grease. Check with your local officials. In addition, the National Biodiesel Board has listed several places that are accepting used cooking oil to turn into biodiesel on this website. Not only will you be able to do something green for your gas tank, you’ll be helping your community’s sewer and trash systems by keeping the grease out of those systems.

As for my brother, he used cheese cloth to clean up the oil after frying and plans to use it a few more times for some future fish fries has has planned. But when it’s run its course, I’ll make sure to let him know to do his part to help biodiesel and clean the environment.

Biodiesel, NBB

Brazil Ethanol Industry On Display At COP-16

Joanna Schroeder

In an effort to showcase decades of renewable energy use, the Brazilian Sugarcane Industry Association (UNICA) will be participating in events during the United Nations Climate Change Conference (COP-16) and the World Climate Summit (WCS) which are taking place in tandem in Cancun, Mexico from November 29-December 10.

According to UNICA, nearly 50 percent of all of Brazil’s energy comes from renewable sources. This is three times the global average and UNICA believes this gives Brazil a leading role in the search for solutions for global warming and climate change. To demonstrate their technologies, UNICA will conduce a seminar on alternatives to minimize emissions from transportation in emerging countries on December 6 at the Cacao Room in Hotel Moon. The organization will also at the Brazil Pavillion with support from the Brazilian Export and Investment Promotion Agency (Apex-Brasil, who will also be at the upcoming AG CONNECT Expo in Atlanta, GA on January 7-10, 2011).

Marcos Jank, UNICA’s President, points out that Brazilian greenhouse gas emissions measured in 2006 would have been 10 percent greater without the contributions from the sugar and ethanol industries. “Over the 35 years of large-scale use of biofuels in Brazil, more than 600 million tons of CO2 were kept from the atmosphere while the country saved US $240 billion that didn’t have to be spent on foreign oil,” said Jank.

He also notes that ethanol is moving beyond the fuel tanks of cars and buses and is also being tested as fuel to power generators, farm implements and machinery, as well as to fly planes. In addition, ethanol is used a replacement for fossil fuels in resins, fine chemicals and “green” plastics. The result, says Jank, is a significant reduction in greenhouse gas emissions.Read More

biofuels, Brazil, conferences, Environment, Ethanol, International

Book Review – Jolt!

Joanna Schroeder

The Age of Electric Cars is finally coming. Despite a stutter back in the late 90s when electric vehicle (EV) development came and went spurred by the passage and elimination of California zero emission policies, electric vehicles have come back. And if author James Billmaier is correct, in his book “JOLT! The Impending Dominance of the Electric Car,” they are not only here to stay, but they will completely transform driving as we know it.

While America has the means to be the leader in electric vehicle development and manufacturing, Billmaier notes that this lead is under threat, especially by China. He writes, “Today the United States faces a new threat to its national security. This time the threat is one of economic dominance, and it comes in the form of the electric car.”

He continues, “The EV industry us certain to become a technological juggernaut. Any society that masters it will enjoy an economic bonanza and enormous world power. For our own security, that society needs to be us.”

While the major hurdles to EV development have been or or close to being overcome, there are still challenges that need to be addressed. Ballmaier notes that these include lack of substantial private and federal investments to develop the industry and manufacture the cars and components in the states, as well as battery development and charging infrastructure. Cost is a major factor, and as an example, the Chevy Volt, that is launching in 2011, will cost more than $40K. In addition, the EVs range is still a concern among most drivers – true EVs are just getting to the 100 mile range.

However, Ballmaier explains that as EVs come of age and consumers purchase them in droves, battery costs will come down, range will go up and the cars will become even less expensive and more attractive.

In the beginning of the book, Ballmaier gives an overview of the industry, that is followed by interviews with some of the major players. The book concludes with his take on the future of EVs in America. While this was interesting, what I felt was missing was a real examination of some of the drawbacks of EVs including the precious metals needed for the batteries, battery replacement and recycling, the needs of the electrical grid and the move to the smart grid, and the true impacts of plugging into a dirty grid. In addition, I felt he missed an opportunity to talk more about hybrids (PHEV), electric vehicles with a gas backup that can run on E85. If his vision comes true, it won’t happen without a transmission that will require hybrids to travel long distances.

In the end, Ballmaier outlines his “JOLT! Program for America” which calls for 100 million plug-in cars on American roads by the end of the decade and asks for America to take charge.

book reviews, E85, Electric Vehicles, Electricity

Brazil Starts Ethanol Pipeline Construction

Cindy Zimmerman

Brazilian energy company Petrobras officially began work this week on a $3.3 billion ethanol pipeline that will be able to transport 21 million cubic meters of ethanol per year from north central Brazil’s Goias state to the Minas Gerais and Sao Paulo states.

Once complete, the pipeline will replace daily delivery runs by 1,500 tanker trucks. At present, 95 percent of ethanol transport is done by tanker trucks. The pipeline is expected to be completed by 2014 but the first phase of the project is scheduled to start operations in 2012.

Brazilian President Luiz Inacio Lula da Silva inaugurated construction on the project Tuesday by soldering the first pipe joint of the 202-kilometer (126-mile) pipeline. “I managed to sell the idea that humanizing the work in the sugarcane fields was important for selling ethanol to other countries,” the president said.

In other ethanol news from Brazil, the Brazilian Sugarcane Industry Association (UNICA) reports that eight Brazilian sugarcane processing mills have already completed the paperwork required by the Environmental Protection Agency for ethanol to be accepted into the United States as an “advanced renewable fuel,” under the Renewable Fuel Standard (RFS).

According to UNICA’s Joel Velasco, the effort by Brazilian mills is very important because without prior registration, exporting to the United States becomes more complicated and unnecessarily delayed. “Ideally, mills should be prepared for this opportunity, because U.S. ethanol demand projections are increasing year after year, and Brazilian ethanol has been recognized by the EPA as an advanced biofuel, thanks to its 61% greenhouse gas reduction compared to gasoline. This recognition makes sugarcane biofuels desirable in the U.S. market and beyond,” he explains.

The mills that have already complied with EPA requirements and are eligible to classify their ethanol as an “advanced renewable fuel” in the United States include Cargill Cevasa, Della Coletta Bioenergia, Açúcar Guarani, LDC Bioenergia and four mills linked to Copersucar S.A.

Brazil, Ethanol, Ethanol News

Global Leaders Want Action During World Climate Summit

Joanna Schroeder

International business leaders are calling for immediate action during the United Nations Climate Change Conference (COP-16) and the World Climate Summit (WCS) that are both set to begin on November 29, 2010 in Cancun Mexico. A group of global investors with collective assets worth more than $15 billion are asking global leaders to “take action now in the fight against global warming or risk economic disruptions far more severe than the recent financial crisis.”

The group is pushing for the passage of policies that limit carbon and spur the development and growth of low-carbon technologies. In a statement they cite potential climate-related GDP losses of up to 20 percent by 2050 and highlight the economic benefits of shifting to low-carbon and resource-efficient economies.

However, there is little hope that global policies will be passed, and less so that they will be enforced, in part due to the hesitation of the U.S. government in passing any policy to limit CO2 emissions such as cap and trade.

According to Mindy Lubber, president of Ceres, an organization representing investors and environmentalists, “Current investment levels fall well short of what is needed to stem the rise of global temperatures and adapt to a warming world. Strong government policies that reward clean technologies and discourage dirty technologies are essential for closing the climate investment gap and building a low-carbon global economy.

California scored a minor victory during the November elections when Prop 23, a regulation that would in essence have undone California’s environmental and low-carbon policies was defeated. Those supporting Prop 23 wanted green polices scaled back claiming that the companies footing the bills to install low-carbon technology would go bankrupt and employees would lose jobs – the opposite of what policy makers are aiming for during an economic recession.Read More

conferences, Energy, Environment, International

Happy Thanksgiving!

Cindy Zimmerman

If you have food on your table today – thank God and thank our nation’s fabulous farmers and ranchers for the affordable, safe and abundant food supply they produce for the world.

I found this poem online that gives good reasons to give thanks today for those who produce the food, fuel and fiber that we all enjoy everyday:

I’m Just a Farmer, Plain and Simple
By Bobby Collier

Happy Thanksgiving From ZimmComm New MediaI’m just a farmer,
Plain and simple.
Not of a royal birth
But rather, a worker of the earth.
I know not of riches
But rather, of patches on my britches
I know of drought and rain,
Of pleasure and pain.
I know of the good and the bad,
The happy and the sad.
I am a man of emotions.
A man who loves this land,
And the beauty of its sand.
I know of a spring’s fresh flow
And autumn’s golden glow,
Of a newborn calf’s hesitation,
And the eagle’s destination.
I know of tall pines,
And long, waiting lines.
Of the warmth of campfires,
And the agony of flat tires.
But I am a man who loves his job
And the life I live.
I am a man who works with God,
I cannot succeed without his help,
For you see,
I’m just a farmer
Plain and simple.

Miscellaneous

Verenium Partners With Desmet Ballestra, Launches Webinar Series

Joanna Schroeder

Verenium announced this week that they have reached an agreement with Desmet Ballestra Group, s.a. to jointly market the Purifine enzymatic degumming process that combines Verenium’s Purifine PLC enzyme and Desmet Ballestra’s engineering services and equipment. As part of the agreement, Desmet has a license to market Purifine PCL along with its processing equipment and engineering services for processing vegetable oil for edible, biodiesel and other non-edible uses. Verenium already sells Purifine directly to customers.

“Verenium is pleased to be working with Desmet Ballestra, a world leader in the engineering and construction of oil extraction and refining plants,” said Janet Roemer, Verenium’s President and Chief Operating Officer. “By entering into joint marketing agreements with leading engineering service firms like Desmet Ballestra, we are able to accelerate the growth of our Purifine PLC product without incurring substantial incremental marketing expenses. I look forward to working with such an experienced and reputable player in the significant and growing edible oils industry.”

Olivier Hanne, the sales director for Desmet also expressed excitement over the partnership. “We are excited to partner with Verenium and to be able to market the Company’s novel Purifine PLC product in tandem with our leading engineering services to our customer base. Desmet Ballestra’s valuable international experience in the design, development and implementation of various process technologies for the edible and non-edible oil processing industries will greatly enhance Verenium’s ability to further penetrate target markets with their leading enzymatic degumming technology.”

Also this week, Verenium launched a monthly webinar series. The first webinar is presented by Sr. Director of R&D, David Weiner, and provides an overview of Verenium’s unique and robust technology platform. It also details how their technology and expertise is utilized to develop tailored enzyme products to solve various industrial market needs, including those of the biofuels industry.

Biodiesel, biofuels, Company Announcement