Brazil Sugarcane Ethanol Update

Cindy Zimmerman

This year’s Brazilian sugarcane crush figures are being revised downward, but still are higher than last year at the moment. Meanwhile, ethanol production is up from last year but exports are down significantly.

UNICAThat’s according to the latest report from the Brazilian Sugarcane Industry Association (UNICA).

The new forecast projects that crushing will reach 570.191 million tons, 3.70% less than the estimate released by UNICA at the start of the harvest in April of 2010 (595.89 million tons), but 5.88% higher than the 541.96 million tons crushed in the 2009/2010 harvest.

Dry weather in the key growing regions is the reason for the lowered forecast, with rainfall significantly lower in some areas, affecting the harvest and reduced the overall availability of cane for crushing by 47 million tons. The State of São Paulo, where more than 60% of all of Brazil’s sugarcane is located, was the most affected region. The dry weather has also resulted in an early end to the harvest season.

According to UNICA Technical Director Antonio de Padua Rodrigues, “the dry weather has persisted through August and if the usual rainfall patterns for this time of year are not resumed in coming months, we will probably have an even deeper harvest failure, which may require a new, revised projection of the amount of cane available for the current harvest.”

Brazilian ethanol production is expected to reach 26.39 billion liters, down 3.66% from the original projection, but 11.40% higher than last year. However, ethanol exports remain below historical values and nearly 46 percent less than this time last year, while domestic use is up 50 percent.

Brazil, Ethanol, UNICA

Ethanol Groups to Participate in TX Future Conference

Because Texas has the most flexible fuel vehicles (FFVs) of any state, a number of industry organizations and companies are getting together to promote ethanol in the Lone Star State next month.

Shaping Texas’ Fuel Ethanol Policy, sponsored by the Texas Renewable Energy Industries Association (TREIA), will be held on September 10 in Austin, Texas. TREIA has been bringing decision makers and industry leaders together in Texas for more than 26 years to build the foundation for developing renewable energy. “This conference offers a clear picture of today’s realities and opportunities in a growing renewable energy sector that some may have written off,” said Russel Smith, Executive Director of TREIA. “The nation’s use of ethanol will continue to increase, and Texas has huge production possibilities and more flex-fuel vehicles capable of running on E85 than any other state. Our current approach to this important industry may leave money on the table.”

Participating in the event are: Growth Energy, the Clean Fuels Development Coalition, the Renewable Fuels Association, ICM, Abengoa Bioenergy and more.

More information on the conference including an agenda can be found online here.

E85, Ethanol, Ethanol News, Flex Fuel Vehicles, Growth Energy, RFA

Domestic Fuel Gets Alternative Energy Blog Award

Cindy Zimmerman

Domestic Fuel was named as one of the Top 30 Alternative Energy Blogs by Online Schools.

According to Online Schools, this award “highlights the very best blogs to learn about alternative energy and all things related on the internet that were nominated by the internet community, and is designed to thank the authors for their contribution toward the world wide web.”

Awards candidates were determined by anonymous nominations that are open to the internet community. After a list of candidates is compiled, they filter the list to ensure that each site qualifies for the category. “We then give the list to be scored by our panel of 5 judges. Each judge rates each blog across 20 different attributes, including content, frequency of updates, amount of advertising, length of posts, and readability.”

So, thanks to our readers for the nomination and to the judges for deciding that we were worthy.

Miscellaneous

Ethanol Promotion Success at Sturgis

Cindy Zimmerman

Promotion of ethanol to motorcycle lovers was a bigger success this year than last.

Ethanol Report PodcastThis edition of the “Ethanol Report” with Renewable Fuels Association (RFA) Director of Market Development Robert White takes a look at how their sponsorship at the 70th annual Sturgis Motorcycle Rally went this year.

RFA Sturgis Fueled with Pride 2010This is the second year that RFA partnered with the Legendary Buffalo Chip campgrounds which is the main venue for the huge motorcycle rally that draws hundreds of thousands each year, and this year was even bigger than last year. “We had a much larger than anticipated crowd,” Robert says. “Attendance was less than 500,000 last year and while the final numbers aren’t in, most are suggesting it was above 800,000 this year.”

That gave Robert lots of opportunities to talk with motorcycle owners about using ethanol in their engines, which most of them are doing without even knowing it. “There’s 16 states out there that don’t require labeling at the pump for anything 10 percent and below, so a lot of these guys and gals have been using ethanol for some time and just didn’t know it. So, they are their own case study.”

There was lots of ethanol signage and giveaways at the campground and during the concerts at the venue and RFA also utilized social media for promotions at the event. “I was giving away ethanol t-shirts that were Sturgis 2010 specific on Twitter and Facebook and we had a Facebook Fan Appreciation party where over 100 people showed up and the only way they were invited was through Facebook,” Robert says. Pictures of the event can be found here on RFA’s ethanolpics Flickr photo album.

Listen to Robert tell the story of promoting ethanol at Sturgis in this Ethanol Report podcast. Sturgis Recap Report

You can subscribe to this twice monthly podcast by following this link.

Ethanol, Ethanol News, Ethanol Report, Miscellaneous, Promotion, RFA

Farm Progress Show to Feature Biodiesel

John Davis

It seems only fitting that the nation’s greatest agricultural showcase will be featuring the world’s greenest fuel.

Renewable Energy Group says this year’s Farm Progress Show, slated for August 31 – September 2 in Boone, Iowa, will be demonstrating a B20 blend of biodiesel in all demonstration vehicles and agriculture equipment:

The B20 blend is provided through STAR Energy, the FS companies of Iowa and Renewable Energy Group, Ames, Iowa. The FS System is the official fuel sponsor of the show through its donation of the FS premium diesel fuel, Dieselex Gold. Dieselex Gold contains multi-functional additive chemistry that makes it the perfect partner for biodiesel blends. It is comprised of 8 components that contribute to engine performance, efficiency and protection.

Original Equipment Manufacturers (OEMs) that have endorsed a B20 biodiesel blend in their diesel engines include Arctic Cat, Buhler, John Deere, Case IH, New Holland and Caterpillar.

“Continuing the use of the B20 blend at the Farm Progress Show demonstrates the commitment of the agriculture industry to renewable, sustainable fuels. B20 use at the Farm Progress show reinforces that it can be used on Iowa farms in diesel equipment,” said Jason Stauffer, Energy Management Specialist/ Area Sales Manager for Star Energy.

REG officials also point out that biodiesel adds value to American farm products, $9 to market cattle, $0.25 to every bushel of soybeans and adding additional value to ethanol through inedible corn oil use.

Biodiesel

SynDiesel Biodiesel Looks to Set Mileage Record

John Davis

A Volkswagen Beetle burning a 5 percent blend of biodiesel and SynDiesel, often referred to as synthetic or GTL diesel, looks to set a mileage record at Hot Rod Magazine’s Drag Week in September.

The company says the SynDiesel Project X Volkswagen Beetle is the favorite to capture the mileage record for the five day event that has competitors race at five different drag strips and have to drive, unassisted to all events during the week:

Last year, Mike Wood’s “DuraMax GT,” a 1994 Mustang GT was the winner of the Diesel Class competition, burning an average of 38.5 miles per gallon, including race time. “My miles per gallon were 3.5 mpg better than last year using a number two diesel. The SynDiesel provided a lot less smoke, more power and cleaner launches. I attribute my win, in part, to the SynDiesel fuel.”

SynDiesel is a renewable and green fuel that was created as an alternative to fossil crude oil diesel. Syndiesel can be used in diesel engines without modification, including automobiles, trucks, buses and industrial diesel turbines. Syndiesel carries the highest cetane number of any diesel fuel on the market, making it a clean alternative than regular diesel.

Greg Hogue, owner, Motor Sports Supply, and driver of the “Project X” Beetle in Drag Week 2010, said, “This is the second year that SynDiesel has fueled the Project X Beetle at Drag Week. We have rebuilt our engine to accommodate the higher cetane and power that the fuel has to offer. We learned a lot from Mike Woods’ Nitrous Express Duramax Mustang that busted the 200 MPH barrier using SynDiesel racing fuel and we are ready to set a record with what could be the world’s fastest VW Beetle.”

The biodiesel blended with Syndiesel is made from soybean and canola oil.

Biodiesel

DF Cast: Getting Infrastructure for Electric Vehicles

John Davis

With the Chevy Volt and Nissan Leaf being rolled out this fall across the country … and the more pricey Tesla Roadster already making its electric vehicle debut … the next concern is where to charge these electric vehicles. While most folks will have or will be getting the capability to do it at home, the lack of infrastructure for these new cars could be problematic.

In this edition of the Domestic Fuel Cast President of Car Charging Group Andy Kinard says his company will be able to provide these away-from-home chargers at a variety of locations, including shopping centers, parking garages and movie theaters. He explains his company’s system is put in for free at these types of locations, and then the revenues generated are shared. There’s even an application for smart phones that will help electric vehicle owners find the charging locations, generating traffic for that business that has a charger put in.

Kinard says there are some regulatory hurdles he still has to clear. The biggest is how to sell the electricity. Only two states, California and Texas, allow businesses to charge for re-sold kilowatt hours. Right now, he can only charge for the time without considering how much electricity each vehicle might be drawing. In the meantime, he’s trying to educate the public that these chargers will be available once the vehicles are readily available.

You can listen to the Domestic Fuel Cast here. Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.

Audio, Domestic Fuel Cast, Electric Vehicles

Export Exchange Focuses on Ethanol By-Product

Cindy Zimmerman

usgcThe upcoming Export Exchange 2010 is shaping up to be a must-attend event for anyone involved in the production of ethanol who also produces the co-product dried distillers grains with solubles (DDGS), which is becoming a major export commodity from the United States.

The Export Exchange, sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council (USGC), features an array of international leaders in ag commerce, including Dr. Bob Thompson with the National Center for Food and Agricultural Policy and Gary Blumenthal, president and CEO of World Perspectives Inc.

Dr. Thompson is scheduled to deliver the keynote address on the first day of the conference to provide perspective and insight on the world supply and demand situation will give attendees a better understanding of the world market. Blumenthal’s remarks during the second day luncheon will focus specifically on the growing global demand for U.S. DDGS. “As long as global population continues to grow, the demand for meat, milk and eggs will increase, and subsequently the demand for livestock and thus for DDGS will climb as well,” Blumenthal says.

Other speakers at the event will include Jim Allwood of Informa Economics, Paul Bingham with IHS Global, RFA president Bob Dinneen and Dr. Erick Erickson with USGC.

More than 170 international buyers of U.S. DDGS and coarse grains are scheduled to attend the event, including representatives from China, Japan, Taiwan, Korea and Vietnam – countries which have a major interest in DDGS. The Export Exchange will be held Oct. 6-8, 2010, at the Hyatt Regency McCormick Place Hotel in Chicago. Registration is available on-line with a $100 discount for registrations received before September 4.

Distillers Grains, Ethanol, Ethanol News, Exports, RFA, USGC

Shell & Cosan Partner on $12 Billon Ethanol Project

Joanna Schroeder

Brazil-based Cosan S.A. has announced a partnership with Shell to form a $12 billion joint venture for the production and commercialization of ethanol and power from sugarcane. According to company sources, the venture, which must receive regulatory approval, would create the 3rd largest ethanol producer in the world, manufacturing 440 million gallons of ethanol per year, and result in more than 4,500 global retail stations selling ethanol blends.

“While there is still plenty of integration planning to do before we launch the proposed joint venture, this is an important milestone in our effort to create one of the world’s most competitive sustainable biofuels companies,” said Rubens Ometto Silveira Mello, Cosan’s Chairman of the Board and non-executive Chairman-elect of the proposed joint venture.

As part of this partnership, Shell will contribute its 16 percent equity interest in Silicon Valley-based advanced biofuels company Codexis, Inc. They will also offer up its equity interest in Canadian celluosic company, Iogen Energy.

“The proposed joint venture is set to pool our complementary businesses, enhance our growth prospects in ethanol production globally and support our growth platform for our retail and commercial fuels businesses in Brazil,” said Mark Williams, Shell Downstream Director.  “Over the next 20 years, sustainable biofuels are one of the most realistic commercial solutions to reduce CO2 emissions from transport.”

But what may be most interesting about this venture, is that Shell and Cosan are competitors, both selling ethanol to consumers via retail stations. Could this pave the way for more oil-to-oil industry ventures?

Brazil, Cellulosic, Ethanol, Ethanol News

Gators Study Termites for Cellulosic Ethanol

Cindy Zimmerman

The University of Florida is continuing its research into the use of termite enzymes to help make cellulosic ethanol commercially viable.

As we reported last year, researchers at UF have been working on genetic sequencing to harness the insects’ ability to churn wood into fuel. Now they report that they have isolated two enzymes that termites use to break up lignin, which is the tough nut to crack when it comes to producing ethanol from cellulosic material such as woody biomass. The material is normally exposed to heat and steam or caustic acids and bases to break down the lignin barrier around the sugar molecules, which adds to the cost of the process. However, the enzymes found in termite salivary tissues may be able to accomplish the same task, and at room temperature.

“Once we figure out the best way to integrate this sort of enzyme into the process, it could drop the cost of producing cellulosic ethanol significantly,” said UF entomologist Mike Scharf, who led the research.

The research was a collaboration between UF/IFAS and the biotechnology company Chesapeake-PERL Inc. of Savage, Maryland. The work was funded by the U.S. Department of Energy and The Consortium for Plant Biotechnology Research Inc.

Cellulosic, Ethanol, Ethanol News, Research