USB: Unfair Argentinian Subsidies on Biodiesel Feed

John Davis

The American soybean industry is crying foul over Argentina’s practice of taxing its whole soybeans for export at a higher rate than it taxes its soybean meal, oil and biodiesel destined for foreign markets. And this article from Feedstuffs.com says the United Soybean Board (USB) believes that is costing the U.S. soybean industry up to $500 million each year:

The soybean checkoff-funded study found that the lower tax burden on Argentina’s soybean meal, oil and biodiesel creates a strong economic incentive for processing soybeans in Argentina. The country then exports these value-added products rather than whole soybeans. Argentina represents the third-largest soybean-producing country behind the United States and Brazil, but is now the biggest exporter of processed soybean products such as soybean meal, oil and biodiesel. Figures from the study show Argentina exports 99% of its soybean meal and 93% of its soybean oil in an average year.

LMC International, an independent economic and business consultancy serving agriculture, conducted the study for USB. It concluded that if the different tax schemes never existed, the United States would have invested more heavily in soybean crushing capacity with an eye on export markets, which would have boosted U.S. soybean prices.

Americans representing U.S. oilseeds interests point to Brazil’s elimination of its differential export taxes in the mid-1990s and the corresponding dramatic drop in that country’s share of value-added soybean meal and oil exports as proof of that the Argentinian lower tax burden is having an impact on world soybean oil markets.

Biodiesel, feedstocks, International, Soybeans

Land Rover to Introduce Biodiesel Concept Vehicle

John Davis

SUV maker Land Rover is set to formally introduce a vehicle that is purported to do pretty well on biodiesel.

This post on The Car Connection blog says the unveiling of the LRX Concept will take place tomorrow for the 40th anniversary of the Range Rover:

The LRX was previously expected to make its public debut at the Paris Motor Show this fall, and that’s still a likely candidate for its first show-circuit appearance. The concept version of the LRX is powered by a 2.0-liter diesel engine capable of sucking 60 mpg out of biodiesel. The biodiesel element may not make it to production, but we’d expect to see a highly-efficient diesel engine in the car from the start–for Europe at least. In the U.S., a small turbocharged gas burner is more likely. Stop-start tech and lightweight materials are also expected to play a key role in fuel savings with the new compact Range Rover.

You can watch the official unveiling at this website.

Biodiesel, Car Makers

Ceres Develops First Salt Tolerant Energy Crop

Joanna Schroeder

Now this is interesting. I was reading earlier this morning in Cadillac Desert about how agriculture in many areas is suffering from water issues that include too much salt. The salt damages the soil, kills the crops and ultimately the land is taken out of production. Today, there are over one billion acres of cropland that have been abandoned around the world and 15 million acres just in the U.S.

However, this may become an issue of the past. Today, Ceres, Inc., a company focusing on the development of energy crops, announced that it has developed a plant that could bring new life to millions of acres of abandoned or marginal cropland damaged by salts. According to the company, results in several of their crop tests, including switchgrass, have shown high levels of salt tolerance.

Ceres reported that its researchers tested the effects of very high salt concentrations and also seawater from the Pacific Ocean, which contains high concentrations of salts, on energy grass varieties such as sorghum, miscanthus and switchgrass, currently being grown in their greenhouses located in California. These sources of biomass are being considered to produce fuel and electricity.

“Today, we have energy crops thriving on seawater alone, said Richard Hamilton, Ceres President and CEO. “The goal of course, is not for growers to water their crops with seawater, but enable cropland abandoned because of salt or seawater effects to be put to productive uses.”

The next step in Ceres’ research is to evaluate energy crops with its proprietary salt-tolerant trait at field scale. Should the results be confirmed, the company says that biofuel and biopower producers will have more choice for locating new facilities, have more productive options for marginal land and ultimately, the ability to displace even greater amounts of fossil fuels.

Hamilton concluded, “In the end, this is not so much a salt trait, but a productivity trait and a land-use trait. I am convinced more than ever that techniques of modern plant science can continue to deliver innovations that increase yields and reduce the footprint of agriculture. Improved energy crops will enable the bioenergy industry to scale far beyond the limits of conventional wisdom.”

bioenergy, biofuels, biomass, Company Announcement, News

A Sweet Deal – Win a VIP Trip to Indy Grand Prix of Sonoma

Joanna Schroeder

The IndyCar Series is in full swing and only a week ago, the Team Ethanol IndyCar was back on track at the Iowa Indy Corn 250. But there is plenty more to look forward to this season. SweeterAlternative.com has announced a contest that will send one lucky winner and a guest to the Indy Grand Prix of Sonoma on August 20-22, 2010. For those of you not familiar with California, Sonoma is one of the country’s most famous places for wine.

The contest is supported by the Brazilian Sugarcane Industry Association (UNICA), and this year sugarcane ethanol fuels the majority of the IZOD IndyCar races in the U.S.

“The contest will raise awareness about the benefits of sugarcane ethanol, a clean renewable fuel that could help Americans save money at the pump and cut dependence on Middle East oil,” said Joel Velasco, Chief Representative of UNICA. “Unfortunately, the fuel is practically unavailable in the U.S. due to a 54-cent per gallon tariff which is set to expire at the end of this year. We hope this sweet deal will broaden awareness about the benefits of sugarcane ethanol and motivate Americans to demand greater choice at the pump,” he added.

The winner will receive roundtrip airfare, hotel for three nights, and VIP seating at the race as well as a embark on a five-hour guided tour through the area’s scenic regions, engaging in some wine tasting along the way. For a chance to win, go to www.SweeterAlternative.com/Sonoma. You must be a legal resident of the U.S. and 21 years of age to enter.

Ethanol, Indy Racing, News

25x’25 Shows Progress Toward Renewable Energy Goal

Cindy Zimmerman

25x'25The nation is moving slowly but surely toward greater energy independence, according to a new progress report from 25x’25.

Renewable energy produced in the United States between 2004 and 2009 grew by about 23 percent, according to the report, Meeting the 25x’25 Goal: A Progress Report. The 32-page analysis details advances made by the renewable energy sector since the Alliance was formed in 2004 toward meeting 25 percent of the nation’s energy needs with renewable resources from the land by 2025.

Among the report’s findings:

– U.S. renewable energy consumption at the end of 2009 was 8.3 percent of total energy consumption, up from less than 6 percent in 2004

– Ethanol production tripled in the last 5 years with 10.8 billion gallons produced in 2009, while biodiesel production climbed in 2008 to almost 700 million gallons

– The electricity generating capacity from wind facilities has grown an astonishing 429 percent since 2004, with total generating capacity now over 35,000 megawatts

– Solar production capacity for both thermal and electricity generation has grown 41 percent since 2004. Some 40 megawatts of solar energy were installed off the grid in 2009

The report emphasizes that while much has been accomplished, the need to make the transition to a new energy future is even more vital now than it was when the vision was adopted in 2004. “We will continue to forge a path to a cleaner, more secure and economically viable new energy future – one defined by ever-increasing amounts of domestically produced, renewable forms of energy,” said Read Smith, co-chairman of the National 25x’25 Steering Committee, in a press conference this morning.

Read the report here.

Energy, Ethanol, Ethanol News, Solar, Wind

POET Aquires Indiana Ethanol Plant

Cindy Zimmerman

POET announced today the purchase of a 90 million gallon-per-year ethanol plant located just outside Cloverdale, Ind. and previously operated by Altra Biofuels.

Making the announcement from the Renewable Energy Finance Forum in New York, POET CEO Jeff Broin said this will be POET’s fourth ethanol plant in Indiana and 27th facility nationwide, bringing the company’s annual ethanol production capacity to 1.7 billion gallons per year. “We have been looking at potential acquisitions for some time,” Broin said. “This plant, in this community, will be a perfect fit for what we do at POET.”

This is the first acquisition for the company since their original plant back in 1987, the rest were built by POET from the ground up. POET will install the company’s proprietary process technology and improve the original plant design. The approximately $30 million in upgrades include BPX, POET’s patent-pending fermentation process which uses enzymes instead of heat, reducing energy use by 10-15 percent. In addition, POET will install a water recovery system and new pollution control equipment. POET expects to reopen the plant in 8-9 months.

Listen to the press conference with Jeff Broin here: POET CEO Jeff Broin on Indiana Ethanol Plant Acquisition

Audio, Ethanol, POET

Grassley: Funding Key to Bill with Biodiesel Measure

John Davis

The bill that would renew the $1-a-gallon federal biodiesel tax incentive could pass right… if Democrats would just fund the entire bill. That’s according to a key Republican senator trying to renew the tax break.

This article from the Minnesota Independent says U.S. Sen. Charles Grassley (R-Iowa) believes the jobs bill, which has an extension of unemployment benefits that is weighing down the entire measure, could pass with the right funding:

“Ninety percent of the bill isn’t controversial,” Grassley said, concluding that the big problem is that he and many other lawmakers don’t want to add to the federal deficit. He chided Democrats for refusing to fully pay for the legislation with offsetting savings, revenue increases or using the money left in the federal stimulus.

Even though Democrats repeatedly cut the bill in an effort to win Republican backing, the latest version would have added $55 billion to the nation’s $1.4 trillion deficit over 10 years, according to the Congressional Budget Office. Grassley said he’s heard from his constituents that they are tired of the government running up huge debt, and that the message is starting to get through to Democrats as well.

“It wasn’t just Republicans who voted against the bill in the U.S. House,” he said. “There were plenty of Blue Dog Democrats who don’t agree with this type of spending either.”

Grassley pointed out that he Sen. Max Baucus (D-Mont.) put together a fully funded unemployment and biodiesel package back in February that would have easily passed… until Senate Majority Leader Harry Reid killed the measure.

Biodiesel, Government

Three Algae Biofuels Consortia to Share $24 Mil Funding

John Davis

Three groups researching algae-based biofuels will get a big boost from $24 million in funding from the U.S. Department of Energy.

Biofuels Digest reports that Assistant Secretary for Energy Efficiency and Renewable Energy Cathy Zoi made the announcemet at this week’s BIO World Congress on Industrial Biotechnology and Bioprocessing in Washington, DC:

According to Zoi, the selections will support the development of a clean, sustainable transportation sector – a goal of the Department’s continued effort to spur the creation of the domestic bio-industry while creating jobs.

At the same time, Zoi announced the release of the final version of the National Algal Biofuels Technology Roadmap, a draft of which was released last June, based on workshop results from a meeting in DC that attracted 200 stakeholders. The final report reflects the substantive comments received during the public comment phase and, according to the DOE, “is intended to guide future work and investments in algal biofuels.”

The three consortia selected for funding are:

Sustainable Algal Biofuels Consortium (Mesa, AZ)
Led by Arizona State University, this consortium will focus on testing the acceptability of algal biofuels as replacements for petroleum-based fuels. Tasks include investigating biochemical conversion of algae to fuels and products, and analyzing physical chemistry properties of algal fuels and fuel intermediates. (DOE share: up to $6 million)

Consortium for Algal Biofuels Commercialization (San Diego, CA)
Led by the University of California, San Diego, this consortium will concentrate on developing algae as a robust biofuels feedstock. Tasks include investigating new approaches for algal crop protection, algal nutrient utilization and recycling, and developing genetic tools. (DOE funding: up to $9 million)

Cellana, LLC Consortium (Kailua-Kona, HI)
Led by Cellana, LLC, this consortium will examine large-scale production of fuels and feed from microalgae grown in seawater. Tasks include integrating new algal harvesting technologies with pilot-scale cultivation test beds, and developing marine microalgae as animal feed for the aquaculture industry. (DOE funding: up to $9 million)

The article goes on the say the projects will take place over three-year periods.

algae, biofuels

DF Cast: Flying at 200 MPH on Ethanol

John Davis

Indy cars recently tore up the track running on clean-burning ethanol, right next to the Iowa corn fields where the feedstock for the green fuel is grown.

In this edition of the Domestic Fuel Cast, we bring you some of the sounds and interviews from the Iowa Corn Indy 250 presented by Pioneer, and the Iowa Corn Growers Association. Our own Chuck Zimmerman had the chance to talk to Ron McQueeny, director of photography for the Indy Racing League and a nearly 40-year veteran photographer of the sport, who says the clean, green fuel has made a world of difference in clearing the haze that used to accompany the start of each race. In addition, we catch up with farmer and President of the Iowa Corn Growers Association, Don Elsbernd, and Todd Frazier with Pioneer Hi-Bred. They see the Iowa Corn Indy 250 as a great showcase for the green fuel and are glad that so many corn farmers are able to see the fruit… a very high-performance fruit… of their labors in corn-based ethanol in these fantastic racing machines.

It’s a great conversation, and you can hear more of it in the player below.
Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.

Audio, corn, Domestic Fuel Cast, Ethanol, Ethanol News, IA Corn Indy, Indy Racing

Flying Car Landing In A Driveway Near You

Joanna Schroeder

Apparently the FAA works much faster than the EPA – the FAA has just approved the “Flying Car,” also known at the Transition Roadable Aircraft. While the flying car, developed by Terrafugia (ter-ra-FOO-gee-ah), doesn’t currently run on an alternative fuel such as ethanol or biodiesel, it is an “alternative” way to get yourself around town.

So here is how it works….You jump into the cockpit and back your Flying Car out of the garage and head to the airport, driving on the same roads as FFVs, electric cars and hybrids. You pull up to the airport, head out to the runway, drop your wings, which are controlled from the cockpit, and take off. Sweet. No more three hour commutes in rush hour traffic!

The Flying Car, classified as a personal aircraft, has been in development by several MIT visionaries since 2006. Here are a few interesting specs. the plane can safely reach up to 100 mph on surface roads and boasts 30 miles per gallon – better than any conventional SUV or truck on the market. In the air, it burns 5 gallons per hour of fuel and the tank holds 20 gallons. For you mathperts, you can fly about 4 hours before needing to fill up the tank with high-octane unleaded gas at your local gas station.

Now that the FAA has approved the Flying Car, the company expects its first delivery in 2011. While there is currently a Flying Car prototype, the next graphical version of the personal plane will be unveiled at a press conference at 10:30 a.m. on July 26, 2010 at Terrafugia’s exhibit at EAA AirVenture in Oshkosh, WI.  Oh, and Terrafugia, could you please make your next version of the Flying Car be a flex-fuel personal plane? Thank you.A

biofuels, Miscellaneous, News