New Report Shows Ethanol Saves Drivers Money

Joanna Schroeder

Memorial Day is right around the bend and this weekend marks the start of summer driving. According to AAA, nearly 28 million Americans are expected to travel this weekend alone, a number curtailed due to environmental concerns as well as concerns caused by the Gulf of Mexico oil spill. Yet there is good news for drivers as they are saving an average of $105 per year because of ethanol. This according to a report released today by the Renewable Fuels Association (RFA).

The blending of ethanol into America’s fuel supply is saving consumers approximately 10 cents per gallon as compared to straight gasoline prices. According to RFA, at the wholesale level, ethanol has been selling at a 50-70 cent per gallon discount to gasoline before the 45 cent per gallon blender’s credit is taken into account. As a result, at a 10 percent ethanol blend (E10), the average American household is saving up to $105 per year.

“Domestic ethanol blends are a great bargain for consumers, saving them money at the pump while allowing them to support a truly American industry,” said RFA Vice President of Research Geoff Cooper. “Simply filling up with E10 instead of regular gasoline saves families money at a time when economic concerns and the Gulf of Mexico oil spill are front of mind. Ethanol is part of the solution to both concerns.”

On another front, as the grills get fired up, ethanol continues to be incorrectly blamed for higher prices of meat due to the claim from ethanol opponents that grain prices are higher. Yet the study shows that grain prices are not higher. In fact, corn prices are nearly 20 percent lower than one year ago and less than half of what they were during the oil-fueled speculative commodity bubble in the summer of 2008.

In a recent column, influential commodity analyst Rick Kment writing for DTN said, “Ethanol continues to be the whipping boy, but blaming the fuel for today’s higher meat prices just doesn’t add up. In the past four months live cattle futures have increased 25 percent while corn prices have fallen nearly 13 percent.”

Cooper on behalf of RFA added, “Finally, and most importantly, Memorial Day is a hallowed holiday in America when the nation pauses to remember those defending and those who have defended this nation. We pay special tribute to those individuals and families who made the ultimate sacrifice. The RFA wishes to extend its appreciation on behalf of everyone involved in America’s ethanol industry.”

Ethanol, Ethanol News, RFA

China on Fast Track for Celluosic Biofuel Production

Joanna Schroeder

Today COFCO, a leading producer and supplier of processed agricultural products, Sinopec, the world’s third largest oil refinery and Novozymes, the leader in biofuel enzyme development and production, have signed a Memorandum of Understanding to take the next steps towards commercial production of cellulosic biofuels in China. As an element of the partnership, COFCO and Sinopec will build a cellulosic demonstration plant and Novozymes will produce the enzymes needed for production.

It is anticipated that the plant will be online in the 3rd Quarter of 2011 and is expected to produce three million gallons of bioethanol made from corn stover per year. One of the key elements that will make this cellulosic ethanol commercially competitive is the Cellic CTec2 enzyme developed and launched by Novozymes this past February. Once the plant is completed, it will be the largest demonstration facility converting ag waste into biofuel in China. Estimates show that China has more than 700 million metric tons of agricultural residue available per year and a recent study by Novozymes and McKinsey shows that the conversion of ag waste to biofuel has the ability to reduce China’s gasoline consumption by 31 million tons in 2020.

“In 2009, we forged this partnership in China to develop biofuel from agricultural waste; today, we are one step closer to producing commercial quantities,” said Michael Christiansen, President, Novozymes China. “With gasoline prices hovering around $4 per gallon in China, companies across the country are reaffirming their commitment to investing in development of clean, alternative fuel sources.”

The number of cars in China is expected to exceed 200 million by 2020 an increase from 130 million on the road today. To meet the demand, China launched an aggressive bioenergy plan of which cellulosic biofuel production is one component. In addition to lowering China’s gasoline needs, this portion of the plan will also reduce CO2 emissions by 90 million tons and provide 6 million new jobs.

biofuels, Ethanol, Ethanol News, International

The Auto Channel Fights for Ethanol

Joanna Schroeder

The Auto Channel has been a proponent of ethanol for quite some time and has given favorable coverage to the fuel. This week, Executive Vice President and Co-Publisher, Marc J Rauch, took it up a notch in defense of ethanol. In his piece, “The Auto Channel Fights for the Truth about Ethanol Versus Gasoline,” Rauch writes, “Bob [Gordon] and I have studied the issue of alternative fuels and energy and we’ve become very enthusiastic supporters of all the technologies…But most of all, we like ethanol. Why? Because ethanol can be used right now, anywhere in the U.S., and by most vehicles without any engine conversions.”

He then talks about higher ethanol blends and says that the reality is most conventional vehicles can use up to E50 without conversions and without being official flex-fuel vehicles. (For those of you following the E15 Waiver, the latest news is that E15 will probably pass but with a stipulation on what model years can use the fuel.) He then goes on to state that while many don’t believe that there is a ‘single bullet’ solution, he and Bob disagree and believe that ethanol, or alcohol fuel, is the solution to replace gasoline.

However, where it starts to get really interesting is when Rauch reiterates, “But the point of this story is to tell you about our fight to overcome the lies and misconceptions about ethanol that are promulgated by the oil and gasoline industries.” It looks like more and more people are finally seeing through the ethanol smear campaign that has been heavily active for the past three or so years.

Yet the highlight of the story is when Ruach takes on some anti-ethanol “experts” who came to light when consumers pointed to them as criticisms for his and Gordon’s support of ethanol. David Fridley, a scientist at the Lawrence-Livermore Laboratory in Northern California, and Jerry Taylor, a Senior Fellow at the CATO Institute in Washington, D.C. who was featured in a John Stossel story (20 Minutes) and also the author of, “An Economic Critique of Corn-Ethanol Subsidies.”

Rauch writes, “After watching the Stossel/Taylor and Fridley videos I sent them both emails expressing how appalled I was at their lack of knowledge and recitation of lies, and offering various facts that contradict their statements.” Rauch published his correspondence with Taylor and it is a great piece of ethanol education for anyone who wants to learn more about the fuel.

So for you ethanol advocates out there, take a piece out of Rauch’s playbook (I don’t think he’ll mind if you’re spreading the good word about ethanol) and help him fight the good fight for ethanol. You can read Rauch’s piece in full, with supporting documentation here.

blends, Ethanol, Ethanol News

Celebrate Independence with Homegrown Fuel on the Fourth

Cindy Zimmerman

usa ethanolGrowth Energy is encouraging Americans to celebrate Independence Day this year with homegrown “Fuel on the Fourth.”

The ethanol organization has announced a new one month promotion offering nearly $300 in E85 fuel to Flex Fuel Vehicle (FFV) owners through the “Fuel on the Fourth” contest. Starting June 1st, FFV owners can enter to win one of two E85 Fuel Credit Cards – equal to $185 and $85 respectively – by submitting a photo of themselves with their FFV along with a caption describing why they choose to buy E85 fuel.

Growth EnergyThe promotion is designed to show the benefits of Flex Fuel Vehicles – which are capable of operating on any combination of conventional and renewable fuels – and recruit additional members to Growth Force, a group that believes in a cleaner, greener America through the use of biofuels.

The contest will run between June 1st and July 1st and is open to FFV owners. Growth Energy will select a first prize winner at random on July 1st in anticipation of July 4th. A second winner will be chosen based on the creativity of the photo and caption submitted. Photos and submissions will be featured on the Growthenergy.org and Growthforce.org websites. To enter, participants must complete a form located at www.growthforce.org/fuelonthefourth.

Ethanol, Flex Fuel Vehicles, Growth Energy

Snazzy, Eco-Friendly Items from Biodiesel of Las Vegas

John Davis

One of my tweeps from the Twitterverse has launched a new, eco-friendly store.

Biodiesel of Las Vegas (@biodeiseloflv) has its official online store at www.BiodieselofLasVegas.com.

Biodiesel of Las Vegas will launch the Ecommerce portion of their website, offering eco- friendly products such as mouse pads made from recycled cardboard, aluminum water bottles, 100% organic t-shirts and hats. BLV aims to increase the awareness of the biodiesel industry by marketing and selling biodiesel related products. All proceeds from the sale of Biodiesel of Las Vegas merchandise will be allocated to the completion of construction on the 100 million gallon per year biodiesel producing plant (80% complete). In a time where many biodiesel plants are struggling to stay in business, BLV continues to be an innovator in the biofuel industry by diversifying revenue generating opportunities

Biodiesel of Las Vegas converts biomass into biofuel.

Biodiesel

Obama Calls for Alt Energy at California Solar Plant

John Davis

President Obama has used his trip to solar manufacturing plant built with federal stimulus money to make a push for alternative fuel sources.

KGO-TV in San Francisco reports that speaking at the Solyndra plant in Fremont, California, Obama made his case in a facility built with $535 million in federal loan guarantees, mindful that the oil disaster in the Gulf of Mexico could help him make the case for green fuels:

“When it’s completed in a few months, Solyndra expects to hire 1,000 workers to manufacture solar panels and sell them across America and around the world,” the president said.

The president also said that is only the beginning.

“And, that’s why I’m going to keep fighting to pass comprehensive energy and climate legislation in Washington,” he said. “We’re going to try and get it done this year.”

He told the invited audience of Solyndra employees and public officials that the oil spill in the Gulf underscores the necessity of seeking alternative energy sources.

Obama promised to be behind efforts to cultivate solar, wind and biodiesel. That’s great! Let’s see if he follows through and lights that fire under Congress this week to finish the work on the federal $1-a-gallon biodiesel tax incentive.

Biodiesel, Solar

He Said, She Said – The Debate on Ethanol Tariffs

Joanna Schroeder

The debate rages on between the Renewable Fuels Association and the Brazilian Sugarcane Industry Association (UNICA) over whose fuel is better for America. Ultimately, UNICA wants in and RFA wants them out.

Earlier this week, UNICA planned a pump promotion in Washington D.C. at two gas stations where for a limited time, drivers would receive 54 cents off per gallon on their fuel purchase. This amount was chosen to highlight the 54-cent-per-gallon tariff on imported ethanol and demonstrate to consumers that sugarcane ethanol saves them money at the pump. However, the promotion was canceled due to “political” reasons shortly after it was made public.

Brazil is currently lobbying to end the ethanol tariff in an effort to export more sugarcane ethanol to the United States and promotes that sugarcane ethanol is a “clean and affordable renewable fuel that reduces greenhouse gas emissions by at least 60 percent compared to gasoline and could help the United States cut its dependence on oil from the Middle East.” Earlier this year Brazil ended tariffs on imported ethanol and is hoping that the U.S. will follow suit.

Joel Velasco, UNICA’s chief representative in North America said of the event cancellation by Capitol Petroleum Group,”While we are unclear who caused this sudden shift in plans, one thing is certain: consumers win when businesses have to compete in an open market, because competition produces higher quality products at lower costs. UNICA will continue advocating for open market competition by encouraging Congress to end the 54-cent-per-gallon tariff on imported ethanol.”

On the other side of the debate is RFA who is advocating for the tariff to stay in place. In a press statement released this week, Bob Dinneen, President and CEO, noted that Brazilian ethanol will not save consumers money at the pump but cost them more. According to the release, “A close look at the facts reveals that American ethanol is selling at a significant discount to Brazil’s. At today’s prices, a gallon of gasoline mixed with 10 percent American ethanol (E10) would be 11 cents Cheaper than a similar gallon using Brazilian ethanol. In fact, the gallon of gasoline with 10 percent Brazilian ethanol would be more expensive than straight gasoline.”Read More

Ethanol, Ethanol News, International, RFA

Clean Air Task Force Sues EPA Over RFS2

Joanna Schroeder

Earlier this year Big Oil sued the EPA over the biodiesel requirement in the RFS2. Today, the Clean Air Task Force, on behalf of environmental groups including Friends of the Earth, filed suit against the EPA claiming that RFS2 encourages the world to use more oil, which will cause more pollution, because America would be reducing its dependence through the use of ethanol and other biofuels.

I don’t know about you but I’m a bit confused about this logic as are others including the Renewable Fuels Association (RFA).

“To blame American biofuels for increasing global oil use defies simple common sense,” said RFA President and CEO Bob Dinneen. “By this tortured logic, any effort that environmental activists support to reduce America’s reliance on oil would be responsible for lowering U.S. oil demand, reducing global oil prices, and inciting increased consumption somewhere else in the world. Increasing mileage standards, deploying electric vehicles, and any other measure designed to reduce U.S. oil demand would be penalized with carbon emissions from increased global oil consumption under this rubric. It simply doesn’t pass the sniff test.”

The suit is based on the theory “Global Rebound Effect” which is explained above. Many also consider this theory, when relating to biofuels, to be as ridiculous as penalizing American farmers for environmental decisions made in other parts of the world, also known as “Indirect Land Use.” In this instance, environmentalists are laying blame on biofuels for the worldwide increase in oil use at the same time they are acknowledging the energy security benefits biofuels offer as America curbs it’s petroleum use. We should consider naming this the “Less for us, more for you” theory.

Dinneen supports America’s decision to move towards energy independence and said, “As the leading energy consumer in the world, America was right to take proactive steps to reduce our reliance on petroleum and set an example for the world. These environmental groups are implicitly making the case for keeping U.S. oil demand and prices high, rather than displacing imported oil with biofuels. Blocking the use of biofuels will not reduce global oil consumption, but rather increase it as America must look for more sources of oil, which too often comes from environmentally questionable practices like deep water drilling and tar sand conversation.”Read More

Biodiesel, biofuels, Ethanol, Ethanol Report, RFA

US Energy Co. Buys Part of Canadian Biodiesel Maker

John Davis

A Nevada clean energy company is buying more than half of a British Columbia-based biodiesel maker.

This press release posted on MarketWatch.com says W2 Energy has signed a letter of intent to purchase 60 percent of Agri-Green Biodiesel, Inc.:

Agri-Green Biodiesel (AGB) consists of three divisions that generated sales of $655,000 in 2009. The different divisions in AGB are a perfect match with the development strategy of W2 Energy: collecting feedstocks, such as waste vegetable oil, converting it into biodiesel and selling it through wholesale and retail outlets.

The current AGB facility has an annual capacity of 1,000,000 gallons per year and W2 will use the NT Plasmatron technology to convert waste from biodiesel production (glycerin) into methanol and electricity. The purchase of Methanol is one of the main costs of creating biodiesel. Using the NT Plasmatron, W2 will be able to reduce biodiesel production expense at the Sparwood plant.

Disposal of waste products like waste antifreeze and waste vegetable oil have been a serious environmental concern for many years. The 2nd generation NT Plasmatron gives W2 Energy the ability to deliver low cost power and increases its fuel generation capabilities.

W2 Energy uses a closed loop system and is a net user of carbon dioxide.

Biodiesel

House Leader Promises Biodiesel Tax Credit Will Pass

John Davis

“We will have enough votes” … that’s the promise from U.S. House Majority Leader Steny Hoyer when asked about the American Jobs and Closing Tax Loopholes Act, the latest piece of legislation that would reinstate the $1-a-gallon biodiesel federal tax credit.

Talk Radio News Service says the credit is part of a much larger $190 billion package that would extend unemployment benefits.

It seems only fitting that extension of the biodiesel incentive would be tied to unemployment benefits, considering the approximately 23,000 American jobs either lost or in peril since the incentive was allowed to expire at the end of 2009.

Some reports say the measure could come to a House vote tomorrow (Wednesday), but there are worries that Republicans, critical of Pres. Barack Obama’s spending so far, could kill the bill. Stay tuned…

Biodiesel, Legislation