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

Working for Green Spotlights Green Jobs

Joanna Schroeder

One of the benefits of America’s move to energy security and its quest to curb climate change are the opportunities for people to work in the burgeoning green industry. Today, Working for Green, a new online community dedicated to helping Americans secure green jobs, has launched a new video-based resource that spotlights individuals who are improving their lives through green innovation and jobs. Some of the people who are featured are working in the solar and wind industries, one person is converting cow manure to renewable energy, and another is collecting hair and fur to be used to help with the oil spill clean up efforts.

This 40+ video series has been in production for nearly a year as crews spent time with “everyday” Americans in 40 states (they plan to visit all 50 states by the end of this year) who have found unique ways to save money and find meaningful work during the country’s economic recession. During the next phase of the project, the Working for Green crew will be spending time on college campuses who are engaged in green programs and partnering with companies who are looking for large numbers of green employees.

“Our journey is taking us to amazing communities where we’re meeting people filled with determination and hope who reinforce what we’re all about – people helping people,” says Susan Neisloss, founder and host of Working For Green. “Their success provides a road map for the future and highlights the need for quality and passion in all of our pursuits and not waiting for government or corporations to take the first step. What better way than being inspired by people of all ages and backgrounds who are motivating one another during this very tough economic time.”

Environment, Miscellaneous, Video

RFA: Green Jobs Should Include Ethanol Tax Incentive

Cindy Zimmerman

The Renewable Fuels Association (RFA) is urging Congress to “include an extension of the expiring tax incentives for ethanol in any legislative package designed to promote green job growth and economic revitalization.”

Renewable Fuels Association LogoIn a letter sent to the Chair and Ranking Member of the House Ways and Means Committee, RFA encouraged the lawmakers to adopt the provisions of the Renewable Fuels Reinvestment Act that would extend through 2015 four key tax incentives for the production and use of ethanol from all feedstocks.

As the letter notes, “Ethanol has been an extremely useful weapon in the fight for energy independence and our efforts to promote more clean and renewable alternatives to imported petroleum based fuels.” The letter highlights the nearly 400,000 jobs ethanol has helped support, the reduction in oil imports by 364 million barrels in 2009, and the savings of approximately 10 cents per gallon of ethanol-blended fuel.

Specifically, the letter showcases the excitement generated by the opening of the Osage Bio Energy ethanol biorefinery in Hopewell, Virginia. According to company sources, more than 1,200 applications were received to fill the 43 full-time positions with the plant. Of the 43 people hired, roughly half were unemployed at the time of the job offer.

Read the letter here.

Ethanol, Ethanol News, RFA

GE to Supply Wind Turbines for Lake Erie Project

John Davis

General Electric has been tapped to provide the wind turbines for an offshore wind project in Lake Erie.

BusinessWeek reports GE will supply five direct-drive turbines that can generate as much as 4 megawatts each in a project with the Lake Erie Energy Development Corp., expected to be completed in 2012:

“Offshore wind has the potential to create thousands of new jobs in Ohio and become a major source of economic growth,” Victor Abate, who runs GE’s renewable energy businesses, said in the statement.

GE will work with Lake Erie Energy to identify additional locations for offshore wind projects, with the goal of developing 1,000 megawatts by 2020, he said.

Ohio Governor Ted Strickland said the project will help reduce the state’s reliance on generating electricity from coal. The state gets about 90 percent of its power from burning the fossil fuel, which contributes the largest single man-made source of greenhouse gases.

The announcement was made at the American Wind Energy Association’s annual conference in Dallas.

Wind

Making Distillers Grains More Valuable

Cindy Zimmerman

Alltech AllzymeSSFIncreasing the value of the ethanol by-product distillers dried grains (DDGs) was a topic at last week’s Alltech International Animal Health and Nutrition Symposium.

Alltech has a product called Allzyme® SSF that can maximize nutrient release in DDGs to make it more nutritious. According to the comany, “the complex works synergistically to break down the different substrates. As a result, more nutrients are available to the animal, thus improving growth and economic efficiency. The multiple activities in Allzyme SSF allows for a more flexible approach to feed formulation through the inclusion of by-products or by reducing nutrient constraints in the diet, particularly energy, calcium and available phosphorus.”

Brian Hoskins, Alltech’s SSF Development Coordinator, explains more in this interview with Domestic Fuel’s Chuck Zimmerman.

corn, Distillers Grains, Ethanol, Ethanol News

Biodiesel User New Holland Launches New YouTube Site

John Davis

Long-time supporter of biodiesel New Holland has launched a new YouTube site, featuring all things farming, including New Holland’s long line of farm implements that run on biodiesel … some of those up to B100 blends.

“Our YouTube channel creates an incredible opportunity to broadcast our brand and engage our audience with compelling content,” says New Holland’s North American Senior Director of Marketing David Greenberg. “We plan to keep adding new videos weekly that inform and entertain. We invite all viewers to subscribe to the channel and upload your agriculture, outdoor and farming related videos.”

There’s six different channels that feature a variety of showcase videos, including the world’s largest combine setting a Guinness World Record, product overviews, operating tips from equipment experts, and testimonials from those who use New Holland’s products.

Check it out here.

Biodiesel, New Holland

Brazil Ethanol Gas Discount Promo Canceled

Cindy Zimmerman

The Brazilian ethanol industry’s planned promotional event in Washington D.C. has been abruptly canceled, according to a news release.

UNICAOne week after approving the event and less than 24 hours after allowing promotional banners to be hung on its property, Capitol Petroleum Group canceled plans by the Brazilian Sugarcane Industry Association (UNICA) to offer Washington-area residents a discount of 54 cents per gallon on gasoline purchased at two Exxon stations on Capitol Hill. A company representative, citing unspecified “political” reasons, abruptly ended UNICA’s plans to help DC drivers keep a little extra money in their pockets for the upcoming Memorial Day weekend.

“Open market competition and free speech are two fundamental principles that have made the United States a global leader,” observed Joel Velasco, UNICA’s chief representative in North America. “It’s a shame that those values don’t seem to apply in this situation.”

The promotion was being sponsored by UNICA to highlight the current 54-cent-per-gallon tariff on imported ethanol and educated drivers about the benefits of sugarcane ethanol.

Ethanol, Ethanol News, International