Ethanol’s Economic Impact in Indiana

Joanna Schroeder

Yesterday, Indianapolis Colt tight-end Dallas Clark joined Tom Buis, CEO of Growth Energy and Gen. Wesley Clark, Co-Chairman of Growth Energy to tout the local economic benefits of Indiana’s ethanol industry. The presentation was given during the Indiana Ethanol Forum, an event that focused on the economic impact and importance of ethanol to the state as well as to the U.S. As part of their remarks, the group stressed the need for federal lawmakers to include support for domestic ethanol in any Congressional debate over clean energy and job creation.

“During this Independence Day recess, we are urging Congress to bring an energy bill to the floor that promotes America’s fuel,” said Tom Buis. “In these tight economic times when we are sending billions of dollars overseas to fund the economies of foreign countries, we need legislation that will keep that money right here in America. Domestic ethanol is the only commercially viable, renewable fuel that creates American jobs while cleaning our air and strengthening our economy and national security. Now, more than ever, ethanol must be at the heart of this debate in Congress.”

Clark continued by stating, “What we’re seeing in places like Indiana and elsewhere around the country is that people want to have a choice at the pump – and they want domestic ethanol to be one of those choices. The more domestic ethanol we produce, the less foreign oil we need. And every gallon of domestic ethanol creates U.S. jobs, cleans the air and strengthens our national security. Today we’re asking Congress to hear the people of Indiana and include provisions to level the playing field for domestic ethanol in the July energy debate.”

Prior to breaking for the July 4th holiday, Congressional leaders indicated they would take up legislation for energy and green jobs upon their return. Growth Energy believes there are several specific measures that should be included in the legislation that will build out infrastructure for biofuels including a flex-fuel vehicle mandate and federal support for the installation of blender pumps. Both of these initiatives would empower consumers with choices at the pump.

Ethanol, Growth Energy, News

Ethanol Report on Motorcycle Rally Partnership

Cindy Zimmerman

Ethanol Report PodcastThis edition of the “Ethanol Report” with Renewable Fuels Association Director of Market Development Robert White talks about their sponsorship at the 70th annual Sturgis Motorcycle Rally, August 6-14 in Sturgis, SD.

RFA Sturgis Fueled with Pride 2010Robert, who is an avid motorcyclist himself, says this is the second year they have elected to have a presence at this event, partnering with the Legendary Buffalo Chip campgrounds which is the main venue for the rally. “More than 100,000 people a day trek through this campground,” he said. “Across the campground, we’ll have banners, educational material and promotional giveaways like koozies at all the local watering holes.”

This may seem like an unusual place to promote ethanol, but Robert says it’s really a great American event for them to reach out to a large number of people in a wide demographic range. “We like the opportunity of having that many people in one small area to educate consumers about ethanol,” said Robert. They will be able to talk with them about the safety of low level ethanol blends up to 15 percent for motorcycle engines, as well as the availability of E85 and mid-level blends for the flex fuel vehicles (FFVs) they may have at home.

Listen to more from Robert in this Ethanol Report podcast. Sturgis Ethanol Report

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

Ethanol, Ethanol News, Ethanol Report, Promotion, RFA

Loss of Biodiesel Incentive Killings Plants, Mandates

John Davis

It’s been more than six months since the federal $1-a-gallon biodiesel tax incentive was allowed to expire, and more refineries … and even some mandates … are in serious trouble.

This story from News14 in Charlotte, North Carolina says Patriot Biodiesel in Greensboro is in danger of closing because of the loss of the credit:

“People aren’t buying biodiesel, not because they don’t like biodiesel but because the price is too high, much higher than the price of diesel now,” [Gabe Neeriemer, co-owner of Patriot Biodiesel] said. “Our price stays the same, no matter what’s going on with the price of diesel, and the price of diesel has dropped considerably.”

Add to that a $1 federal tax credit that wasn’t renewed and this local business is struggling to survive. “We don’t rely on the tax credit to be profitable,” Neeriemer said. “But we use the tax credit to offset the government regulations and taxes already placed on fuel.”

“Every biodiesel company in the nation is struggling right now,” he said. “Most have closed their doors, 80 percent of biodiesel refineries have shut down and the 20 percent that are still open are operating under 50 percent capacity. Most are operating under 20 percent capacity, just enough to keep the doors open.”

Meanwhile, Biodiesel Magazine reports that Massachusetts’ biodiesel mandate is being suspended indefinitely:

Dwayne Breger, director of the renewable energy division for the department said that the Clean Energy Biofuels Act provided the commissioner with several outs, or possible reasons to suspend the mandate, “and price impact was one of them,” Breger said. “The expiration of the federal tax credit would cause the full brunt of the extra cost to be borne by the Massachusetts consumer.”

Breger said without the $1 per gallon federal blender credit on the books, the added cost of a B2 blend would be around 3 cents per gallon.

The article goes on to say that some in the industry worry that the damage by the loss of the incentive could be irreversible at this point and set a bad precedent for other states that are considering their own mandates or with pending ones.

Biodiesel, Government, Legislation

School Buses to Run on Liquid Propane

Joanna Schroeder

Many school-age children spend quite a bit of time riding the bus. Unfortunately, many reports have indicated that the emissions from buses are extremely harmful, especially for those children with health issues such as asthma. Today, ROUSH Performance Products and Micro Bird, Inc. have announced that they have integrated the ROUSH Liquid Propane system into the new 30-passenger Micro Bird by Girardin, a Type A School, Multi-Function School Activity Bus (MSFAB) and Commercial Bus. One of the biggest benefits – significantly reduced tailpipe emissions.

“Propane is a perfect alternative fuel option for school districts that must reduce their operational costs as well as lower their emissions,” said Jack Roush, motorsports legend and chairman of ROUSH Enterprises. “Historically, propane trends 30 to 40 percent less than diesel which helps the school districts to stretch their fuel budget considerably further, and there is no question that the emissions are much cleaner.”

On the emissions front, ROUSH says that propane burns cleaner than gasoline or diesel, with up to 20 percent less nitrogen oxide, up to 60 percent less carbon monoxide, 24 percent fewer greenhouse gas emissions, and fewer particulate emissions when compared to gasoline. They also promote the cost-savings benefits of the fuel.

“We are excited to partner with an industry leader like Micro Bird,” said Todd Mouw, vice president of sales and marketing for ROUSH. “We have spent four years perfecting this liquid propane injection technology and this partnership will show that propane is the best alternative fuel for school districts and shuttle operators across North America.”

Bill Danner, Blue Bird vice president of sales, North America concluded, “We are thrilled by the introduction of the new Propane-Powered Micro Bird as it extends Blue Bird’s offering of affordable green solutions into all school bus vehicle segments.”

The buses will be sold exclusively by Blue Bird Dealers throughout North America. Sales will begin in July with production scheduled for late 2010.

News, Propane

RFA Disputes Dead Zone Tie to Ethanol

Cindy Zimmerman

An article in the San Francisco Chronicle this week blames ethanol production for the so-called “dead zone” in the Gulf of Mexico, which it compares to the oil disaster currently facing that body of water.

Renewable Fuels Association LogoThe article prompted a response from Renewable Fuels Association president Bob Dinneen, who starts off a letter to the editor by saying, “it is clear the San Francisco Chronicle has a dead zone of its own where facts die and science is buried.”

Dinneen notes that scientific study of hypoxia in the Gulf, which creates what is called a “dead zone” where oxygen is depleted, has failed to find any one cause. Dinneen quotes one researcher who says, “credible evidence shows that [excess] nutrients [in the Gulf] may also be derived from atmospheric deposition, sewage and industrial discharge and fertilizer runoff from residential areas. Nutrient runoff from suburban areas roughly equals that of agriculture lands.” That would include things like golf courses, residential lawns and office parks.

As to ethanol contributing to an increase in Gulf hypoxia, Dinneen says, “The facts dispute the very basis of the article. U.S. cropland has not expanded because of ethanol. There are fewer acres of corn today in the U.S. than there were in the 1920s-1940s. Corn acres topped 100 million acres several times in the late 1920s/early 1930s. Compare that to this year’s corn acreage of 87.9 million. In fact, corn acres have fallen 6% since 2007.”

Read Dinneen’s letter here.

Environment, Ethanol, Ethanol News

UK Trains to Use Biodiesel Additive

John Davis

Just yesterday, I told you how International Fuel Technology had just recently finished testing on a couple of its fuel additives that make biodiesel run better with more miles per gallon.

Now, the St. Louis-based company has announced that East Midlands Trains in the United Kingdom, which were the test trains for DiesoLiFT 10 in its light rail, diesel multiple unit (DMU) operations, will continue to use the additive and could save about 92,000 gallons of diesel fuel a year:

“The fuel economy improvement realized by East Midlands Trains in the recently completed in-service field demonstration is consistent with fuel economy improvements we have achieved in numerous other in-service and test bed rail engine demonstrations,” said Gary Kirk, IFT’s Director and Sales and Marketing. “Use of DiesoLiFT 10 will reduce fuel consumption and harmful emissions. We are excited to work with a company committed to cost effective green technologies.”

Matt Browne, East Midlands Trains’ Environmental Manager, said, “We are extremely pleased to be the first train operator taking part in this in-service field demonstration with IFT. The results are already demonstrating that by using the fuel additive, DiesoLiFT 10, we are improving our fuel efficiency and cutting our carbon emissions. Trains are already one of the most environmentally friendly forms of transport, and use of DiesoLiFT 10 is helping us make our trains even greener.”

Trains in the UK use around 317 million gallons of diesel a year. DiesoLiFT 10 could save 16 million gallons of fuel annually.

Biodiesel, International

The Biofuels Investor Migration to Brazil

Joanna Schroeder

A colleague of mine, Will Thurmond, who is the CEO of markets research firm Emerging Markets Online, sent me this great article about why companies are spending billions of dollars investing in advanced biofuels in Brazil while companies are hesitant to invest in any biofuels projects here in the states. I thought that it was so insightful that I wanted to share it with you here.

“US Biofuels Investors, Technologies Migrate to Brazil”

As we enter a new decade in 2010, why are Shell, Bunge, LS9, Dow, BP, Amyris and Cobalt collectively investing more than $20 billion dollars into advanced, sustainable biofuels in Brazil? The big dance between Brazil, US and EU public and industries kicks off a new era in international biofuels investment.

Bossa Nova – The New Wave
Bossa Nova (translation: the new wave, mixing old traditions with new trends) is an evolutionary art form. In the case of the agri-fuels business, Brazil’s new wave of advanced, sustainable biofuels investments represents a heady mixture of sugars and cellulosic carbohydrates into ethanol and hydrocarbon fuels, renewable diesel, biochemicals, biobutanol, biopolymers, and advanced, low-carbon drop-in replacement fuels.

Enter Brazil. For more than 30 years, Brazil has lead the world in sustainable biofuels production. At the dawn of a new decade, Brazil is  emerging as a world leader in advanced, sustainable biofuels investments, along with new technologies from private sector partners in the US and EU. In 2010, Brazil’s progress in private sector biofuels investment is charging ahead, while EU and US government policies are effectively reducing ethanol biofuels targets due to political uncertainty and slower growth related to cellulosic biofuel feedstock production economics.Read More

Ethanol, Ethanol News, International

New Study to be Released at Hoosier Ethanol Forum

Cindy Zimmerman

A new study from Informa Economics will be unveiled Wednesday at “Fuel Freedom, the Indiana Ethanol Forum,” a first time event presented by the Indiana Corn Growers Association and sponsored by the Indiana Corn Marketing Council and Growth Energy, according to a story from Hoosier Ag Today.

Dallas Clark from the Indianapolis Colts and General Wesley Clark, co-chairman of Growth Energy, will be the featured guests at the event designed to help inform Indiana political and business leaders about the importance of the ethanol industry to the state of Indiana. As part of the program, the Colts’ Clark will present a scholarship for the best video submitted as part of the Hoosier Horsepower education program.

Hoosier Horsepower is a partnership between Indiana Soybean Alliance, Indiana Corn Marketing Council and the Indianapolis Colts to provide educational programs for K-12 students to learn more about biofuels made from corn and soybeans raised in Indiana.

corn, Ethanol, Growth Energy

FlexFuel Vehicle Owners Win “Fuel on the Fourth”

Cindy Zimmerman

Two lucky Flex Fuel Vehicle (FFV) owners received some American grown fuel for Independence Day, courtesy of Growth Energy.

Growth EnergyThe ethanol organization announced the winners of the “Fuel on the Fourth” contest offering nearly $300 in flex fuel cards to Flex Fuel Vehicle (FFV) owners. Contestants had one month to submit a photo of themselves with their FFV along with a caption describing why they choose to buy flex fuel for their vehicle.

Two winners were selected from the submissions. First place winner Jane Marie Connell of Granite Falls, Minn. and second place winner Harvey Fliehs III of Groton, S.D. will receive flex fuel cards worth $185 and $85 respectively, to be used for the purchase of flex fuel for their vehicles. Both winners will receive their cards in time for the Independence Day weekend.

Connell’s name was chosen through a random drawing for the first place prize while second place winner Fliehs was selected for his creative submission and photo (pictured). In his submission, Fliehs, a farmer in South Dakota, wrote, “Using flex fuel is an everyday reminder that the corn we produce is making a positive impact on our community, environment and country. Our family is a 3rd generation farm, where not only the farm is passed down but the name as well. We’re proud to provide a sustainable fuel source that we can pass down to generations to come.”

E85, Ethanol, Flex Fuel Vehicles, Growth Energy

Coffee Cups Could Make Ethanol

Cindy Zimmerman

Researchers at the University of Manitoba are finding a new use for discarded coffee cups by turning them into cellulosic ethanol.

According to a story from Canada’s CBC News, the researchers are using one particular kind of disposable coffee cups, from the Tim Hortons coffee chain, founded in 1964 in Hamilton, Ontario and very popular in Canada. Microbiologists Richard Sparling and David Levin started the project last year when they noticed all the discarded coffee cups from Tim Hortons outlets on the University of Manitoba campus and came up with the idea that they might make good food for bacteria they were testing to make biofuels. So far, they’ve found that 100 Tim Hortons cups can make 1.3 litres of ethanol, or about a third of a gallon.

The researchers say the Tim Hortons cups, as well as other paper products, are processed and pre-treated to be “bacteria-ready” and therefore could be a great source of waste material for cellulose to make ethanol. Interestingly, they found that the bacteria seem to like the Tim Hortons cups better than similar cups from other places like Starbucks, which may be due to the specific recipe for the paper used by the manufacturer that supplies the cups to each company.

Read more here.

Cellulosic, Ethanol, Ethanol News