Purdue Report Disputes Indirect Land Use Findings

Cindy Zimmerman

purdueA recently completed state-of-the-art analysis from Purdue University concludes that the California Air Resources Board (ARB) overestimated the indirect land use change (ILUC) impact of grain-based ethanol by a factor of two in developing its Low Carbon Fuels Standard (LCFS) one year ago.

Renewable Fuels Association LogoThe Renewable Fuels Association sent a letter sent this week to ARB Chair Mary Nichols pointing out this dramatic conclusion and reminded her of the board’s promise to review and incorporate new science as it becomes available. In the letter, RFA President Bob Dinneen wrote:

“New research conducted and published by Purdue University using the Global Trade Analysis Project model (GTAP) concludes that land use change emissions potentially associated with corn ethanol expansion are likely less than half of the level estimated by the California Air Resources Board (ARB) staff for the LCFS. While we continue to have grave concerns about including highly uncertain and prescriptive indirect emissions penalties in the LCFS (for instance, we do not believe ARB has the authority to account for ILUC consistent with the Commerce Clause of the U.S. Constitution), we write to point out the new Purdue findings because we believe ARB has committed itself to consider and respond to critical developments like these.”

Read a pdf of the Purdue report here.

Ethanol, Ethanol News, Indirect Land Use, RFA

POET Meets the Press

Cindy Zimmerman

poet pressPOET CEO Jeff Broin was surrounded by the media Wednesday after President Obama made a visit to a POET ethanol plant in Macon, Missouri. It gave him an opportunity to address some of the criticism of ethanol regarding its impact on the environment.

“Today ethanol is 59 percent lower in lifecycle greenhouse gas emissions than gasoline and so it is far more environmentally friendly,” Broin responded to a reporter’s question. He talked about indirect land use change, cellulosic ethanol, increasing efficiency of ethanol plants and the ability of cars to run efficiently on higher blends of ethanol. “I personally own a flex-fuel vehicle that gets the same mileage on E30 as it gets on regular gasoline,” Broin said.

Although he admitted not having enough time with President Obama to talk extensively about issues facing the industry, Broin said he believes the president supports biofuels. “I think the president has been a true champion for biofuels,” said Broin. “He was when he was in Illinois, he seems to still be extremely supportive, the secretary of agriculture is very supportive and I think that we’ll continue to see the president be very supportive of biofuels.”

Ethanol, POET

Tennessee Holds Ethanol Workshop

The Tennessee Department of Agriculture hosted a workshop yesterday to educate retailers on issues relating to ethanol. “Meeting the Demands of Fuel Standards with Ethanol Fuel” was attended by nearly 80 participants who included fuel suppliers, retailers, terminal operators and fleet managers.

Topics covered during the workshop included: issues and solutions to E10 and E85 field problems, E85 dispensers and Underwriters Laboratory approval update, electronic monitoring of water levels, underground storage tanks, renewable fuels standard, and grant opportunities for E85.

The Tennessee Department of Transportation (TDOT) is now accepting applications for funding through their BIOTENN Green Island Biofuel Corridor Program to establish biofuel refueling sites no more than 100 miles apart along Tennessee’s interstates and major highways. Up to $45,000 is being offered by this program to install E85 infrastructure. The Green Island grant program requires a 20% match that cannot come from state or federal funds. This is a reimbursement program and the station owner must demonstrate that eligible expenditures have been paid before reimbursing grant recipients for a new pump installation or conversion to E85.

The Growth Energy Market Development team also presented at the event explaining their ethanol infrastructure grant program where $2,500 is available on top of the TDOT funding.

The workshop was sponsored by the Tennessee Fuel and Convenience Store Association, the Tennessee Petroleum Council in partnership with: Tennessee Department of Environment and Conservation, Tennessee Department of Transportation, and East Tennessee Clean Fuels.

E85, Ethanol, News

Video Of President Obama Speech at POET Biorefining

Chuck Zimmerman

You might have already listened to President Obama speaking yesterday in Macon, MO at POET Biorefining plant but now you can watch him. He may not have mentioned corn or corn ethanol but as you can see from his backdrop here, it was prominently displayed.

Ethanol, POET, Video

Biodiesel to Fuel Lake Erie Ferry Service

John Davis

A Lake Erie ferry service will be greening up its fleet by running one of its passenger vessels on a blend of biodiesel.

Biodiesel Magazine reports that Miller Boat Line will be running its ferry, the William Market, on a 10 to 20 percent blend of a not-so-typical type of biodiesel:

The fuel, G2 Diesel, is made from reacting soybean oil and ethanol—not fossil-derived methanol as most biodiesel transesterification processes use.

G2 Diesel is produced by 11 Good Energy Inc., a Delaware corporation formed in May 2007. In November 2009, the company opened a 16.5 MMgy facility in Magnolia, Ohio.

Miller Boat Line describes itself as the most value-friendly way to travel to Put-in-Bay and the only way to bring vehicles to the island. Scott Market, vice president of Miller Boat Line, said the company has become the only environmentally-friendly option for tourists.

“As a family-owned business, we think about our kids with everything we do and we thought it was time to do something to protect the environment for future generations,” Market said. “This allows us to shrink our carbon footprint.”

The company says it hopes one day to use the G2 Diesel in all four of its vessels.

Biodiesel

Cape Wind Green Light Big for Offshore Wind Industry

John Davis

A wind energy project off the Massachusetts has gotten the federal government’s OK to move forward … and it’s seen as a major victory for the offshore wind energy industry in this country.

U.S. Secretary of the Interior Ken Salazar will allow the 130-turbine Cape Wind project, the nation’s first offshore wind farm, to be built. This story from CNN says the ruling will have a major impact for other offshore wind projects:

“The United States is leading a clean energy revolution that is reshaping our future,” Salazar told reporters in Boston. “Cape Wind is an opening of a new chapter in that future, and we are all part of that history.”

“Cape Wind will be the nation’s first offshore wind farm, supplying clean power to homes and businesses in Massachusetts, plus creating good jobs here in America,” he said. “This will be the first of many projects up and down the Atlantic coast.”

The Cape Wind project has been in the works for nine years, tied up while people, such as the late Sen. Edward Kennedy, argued the turbines … miles offshore … would ruin the view from their mansions.

But don’t expect this decision to be the final word on the wind farm. The opposition is vowing to continue the fight, and those millionaires and billionaires have some mighty deep pockets.

Government, Wind

Making the Case for Biodiesel to Obama in 90 Seconds

John Davis

Just 90 seconds … a short minute and a half … that’s the amount of time that a biodiesel advocate had to make the case for the green fuel to the President of the United States.

When Pres. Obama made the trip to Iowa yesterday to talk about wind turbines, Brad Albin, Vice President at Renewable Energy Group and Secretary of the Iowa Renewable Fuels Association, pressed upon the President the urgency of the need for the reinstatement and retroactivity of the biodiesel tax credit:

“I shook his hand and told him that we’re losing jobs as we stand here, which seemed to get his attention,” explained Albin, who had been sitting in the second row. “I told him about plants idling and that more than 90 percent of manufacturing staff at U.S. biodiesel plants have been laid off as a result of the tax credit lapse.”

Obama acknowledged his biodiesel tax credit updates are coming through USDA Secretary Vilsack. The President continued to listen as I explained that for 20 years Americans have worked to meet the challenge of increasing energy independence; that farmers and families have invested billions, and now companies are bankrupt or bleeding to death.

“Just like some in the ethanol industry, our fear is that major, multi-national petroleum companies are just waiting to scoop up the biodiesel industry’s capacity, returning cents on the dollar to farmer investors,” Albin said to the President.

Albin further explained that the five month lapse of the tax credit could not have come at a worse time as the Renewable Fuels Standard goes into effect July 1, 2010.

“We’re going to die without this tax credit,” Albin added even after the President’s assurances. The President responded: we won’t let you die.

Albin said he continued to press his case and asked as he walked away if Obama would commit to the tax credit being in place by the end of May. He says the President turned back to him and said, “I’m the President and I promise I’ll do whatever I can.” Let’s see what that means.

Biodiesel, Government

President’s Ethanol Speech Lacks Substance

Cindy Zimmerman

Ethanol producers and corn farmers who were hoping for President Obama to make a strong show of support for the ethanol industry when he appeared at a POET plant in Missouri on Wednesday were probably a little disappointed. Yes, he made the appearance and said that “renewable, homegrown fuels are a key part of our strategy for a clean energy future” – but that was about it.

The entire speech, minus introductions, was only 10 minutes long and most of it was spent talking about the economy. About three minutes were spent on what the administration has done to promote renewable energy with the economic recovery act, the Biofuels Working Group and the Navy using biofuel in a new jet. However, there was no mention at all of the top priorities for the ethanol industry – getting the tax incentives renewed and the E15 waiver approved. Without those actions, the future of the ethanol industry is questionable.

poet obamaThe president only used the word ethanol five times, but preferred the more generic “biofuels” which was used nine times. Once, when he strayed from his prepared remarks, he used the word “biodiesel” apparently by mistake, saying “I want us to be first when it comes to biodiesel and the technologies that are being developed in places like POET.”

It is also notable that the president did not even mention the word corn, even though he was standing next to a big front end loader filled with it. The word agriculture was used only in reference to the U.S. Secretary and state director of agriculture present at the event. Farmers were only referenced in terms of the “tough time” they were having “getting by” when he was running for office.

The good news is that POET president Jeff Broin did get a chance to speak briefly with the president about the industry’s concerns. “We talked about the fact that cellulosic ethanol had the potential to create hundreds of thousands of jobs and that there were some policy issues that are very important to move that forward, the first being the fact that today the market is full,” said Broin. “Basically ten percent ethanol is what’s allowed in gasoline today and we need to move that wall and open up the market.” However, Broin says he only had a limited amount of time to talk with the president and was not able to address the ethanol tax incentive issue, but he did discuss it with Agriculture Secretary Tom Vilsack.

One can be hopeful that meeting real workers with real jobs at a real ethanol plant in a small rural community made an impression on the president and he makes the connection between that and the need to provide real support to keep the industry growing.

Commentary, corn, Ethanol, POET

President: Rebuild Economy Through Renewable Fuels

Chuck Zimmerman

Today President Obama made his first visit to an ethanol plant since taking office. His message focused on achieving the American dream and rebuilding the economy with renewable fuels playing a key role.

Here are some excerpts from his prepared remarks (Word doc). He didn’t stick to it completely but you can listen to his recorded remarks below. I’ve also got a set of photos you can enjoy: President Obama POET Biorefining Photo Album

Ten years ago next month, this plant produced its first gallon of ethanol.  Today, 45 employees produce 46 million gallons a year.  So one of you is overachieving. Congratulations to all of you.

In the two years I spent running for President and visiting towns like these, a lot of folks talked about how the American Dream was getting harder and harder to reach.  Families were having a tough time getting ahead.  Farmers were having a tough time getting by.  And worse, many of our young people grew convinced that their only chance to find opportunity was to seek it someplace else.

But success stories like POET prove that doesn’t have to be the case.  And I believe we can help companies like yours replicate them across the country.

So there shouldn’t be any doubt that renewable, homegrown fuels are a key part of our strategy for a clean energy future – a future of new industries, new jobs in towns like Macon, and new independence.

Here at POET, you do more than just help stake America’s claim on that future.  You stake Macon’s claim on America’s future.  And I’m committed to making sure that communities like this one have a bright future of opportunity to look forward to.  Thank you, everybody.

Audio, biofuels, Ethanol

Live Audio of President Speech at Ethanol Plant

Cindy Zimmerman

We are going to try and bring you live audio of President Obama’s speech at the POET ethanol plant in Macon, Missouri via cell phone and Ustream since there is no good internet access at the site and aircards don’t work well for live broadcasts. Speech is scheduled to begin at 12:55 central time. Audio is not clear at all since Chuck has the phone sitting on a table and is unable to take photos and hold up the phone at the same time. We will have broadcast quality audio after the event.

Post Update: We hope you were able to listen in when President Obama made his remarks from the POET Biorefining plant today.

You can now listen to his remarks below.

Audio, Ethanol, POET