Obama’s Ethanol Tour Prompts Biodiesel Board Plea

John Davis

As President Obama prepares to visit an ethanol plant in Northern Missouri (see Cindy’s post), the National Biodiesel Board (NBB) … headquartered less than 100 miles to the south … is making the plea for the White House to get behind the $1-a-gallon federal biodiesel tax incentive that expired at the end of 2009 and put thousands of industry employees out of work:

“We are pleased the President continues to demonstrate his support for the biofuels industry,” said Joe Jobe, National Biodiesel Board CEO, from the group’s headquarters in Jefferson City. “But we also need him to remind Congress that their inaction to reinstate the biodiesel tax incentive could cost the country tens of thousands of jobs. They must act now before America loses its only commercially available Advanced Biofuel.”

Congress failed to reinstate the biodiesel tax incentive for 2010 before it expired at the end of last year. As a result, domestic biodiesel production has plummeted, employees at biodiesel manufacturing plants have been laid off and in some cases, plants have ceased operations all together.

“All the industry needs is a little help from Washington to keep American made biodiesel competitive with foreign oil,” Jobe said. “Biodiesel dramatically reduces carbon pollution, lessens our dependence on foreign oil and employs thousands in green jobs across the country. But without reinstatement of the tax incentive, the industry is barely surviving.”

The visit to the ethanol plant, part of Obama’s “White House to Main Street Tour” through Missouri, Iowa and Illinois, is not open to the public, so my guess is no one from the NBB will get close to the president to make the case for their green fuel. Let’s see if he’s listening anyway.

Biodiesel, NBB

NYSERDA Extends Biofuels Program

The New York State Energy Research and Development Authority has extended their Biofuel Station Initiative that will allow for 50 percent of the costs, up to $50,000 per site, for new installations of biofuels dispensing equipment, storage tanks and associated piping equipment.

The New York State Biofuel Station Initiative was launched in May 2007 and the objective is to increase the number of retail E85 and biodiesel service stations in New York through a comprehensive approach of providing incentives to both mid-stream distribution terminals and retail stations.

“NYSERDA’s biofuel station initiative has been successful in building an alternative fuel infrastructure throughout New York with more than 130 retail gas stations participating and the first 45 currently open,” noted Jeffrey Gordon, Director of Communications, NYSERDA. “E85 is a domestically produced alternative fuel that affords consumers a choice at the gas pump over conventional gasoline, is more environmentally-friendly, will reduce our demand for imported oil, and will keep our energy dollars right here in New York. With continued support from our federal and State administrations, E85 ethanol will continue to play a role in NYSERDA’s efforts to help build a vibrant clean energy economy for the future.”

Approximately $4 million is still available for retail fueling stations. Growth Energy Market Development is supplying the stations with their pump imaging package that will allow for a consistent message across the state. Each kit will be reimbursed from the grant.

For more information regarding this program, click here.

E85, Ethanol, Facilities, News

One-Sided Article Blames Ethanol for Meat Price Hike

Cindy Zimmerman

The ethanol industry was quick to respond to a Bloomberg Business Week article Monday that places the blame for the current hike in meat prices solely on using corn for ethanol.

The story quotes several meat industry representatives who state that current higher meat prices are “ethanol-induced” – the result of hog and cattle herds that were reduced in 2008 due because demand for more ethanol drove up the cost of feed.

Growth EnergyJumping to the defense of corn ethanol, Growth Energy CEO Tom Buis said the story “accepts as fact a disproven myth that ethanol somehow drives up food prices — the goal of a carefully coordinated propaganda campaign that is not based on truth.”

In fact, the Congressional Budget Office report released in April 2009 and a recent report from the UK found that it was mainly higher oil prices that drove prices for both food and feed higher in 2008. That was proven true last year when the amount of corn used for ethanol increased from 2008, but feed and food prices went down.

The completely one-sided article belatedly added a short paragraph with a response from the ethanol industry. Ethanol producers say their industry is unfairly blamed for the record feed costs of 2008. The surge reflected “wild speculation in the markets and the surge of index funds” rather than the jump in corn use for fuel, said Chris Thorne, a spokesman for Growth Energy, a Washington-based ethanol trade group. “Grain producers in this country will more than meet all expected demand for export, for food, for livestock feed and certainly for fuel.” That was added as an update in paragraph 22 some time after the original story was released on line.

Ethanol, Food prices, Growth Energy

New E85 Stations Open in North Florida

Cindy Zimmerman

Renewable Fuels Association LogoThanks to the efforts of the Renewable Fuels Association (RFA) and Protec Fuel there are now two new E85 fueling stations near I-10 just west of Jacksonville, Florida.

R H Davis Oil Exxon in Macclenny and Citgo in Glen St. Mary will provide more fueling options to drivers of flex-fuel vehicles (FFVs) on the interstate as well as commuters traveling to Jacksonville. R H Davis Oil Company utilized Protec Fuel’s turnkey E85 program that included station design, conversion, fuel supply and financial assistance.

“This is an exciting opportunity for the towns of Macclenny and St. Mary,” said R H Davis Oil President, Max Davis. “With the Chevy Dealership down the road ordering more flex-fuel trucks and cars, we have an increasing amount of Flex-Fuel Vehicle drivers, but we never had the fuel option of E85 to offer them. With these new stations, we are able to offer all of our customers a fuel they desire.”

“We are thrilled for the opening of two new E85 fueling locations in northern Florida,” said Protec Fuel CEO Todd Garner. “With more fuel option developments like this, we will be able improve and increase the use of ethanol throughout the country. We look forward to providing fuel for these new locations.”

“These stations are part of an overall strategic plan to increase the number of E85 stations throughout the Southeast in an area full of FFVs,” said RFA’s Director of Market Development, Robert White. To help find E85 stations while on the road, the RFA has developed a fuel locater application for Garmin and TomTom GPS systems. This application will map out fueling stations closest to the user’s location and their chosen destination.

E85, Ethanol, Ethanol News, RFA

CME Launches Ethanol Co-Product Contract

Cindy Zimmerman

The trading of futures contracts for the ethanol co-product that is used as livestock feed officially began today on the CME Group electronic trading platform, Globex.

Distillers’ Dried Grain (DDG) futures are a physically delivered contract designed to bring price discovery and transparency to the corn crush market allowing customers to better manage their price risk in the feed, livestock, dairy, biofuels, grains and oilseed industries. In addition, DDG futures can be combined with corn and ethanol futures to establish the Corn-for-Ethanol-Crush margin.

The contract will allow ethanol producers to create a complete risk management profile through hedging both inputs (corn, natural gas) and outputs (ethanol and DDGs); otherwise known as the “corn crush”.

More information is available here.

Distillers Grains, Ethanol, Ethanol News

Obama to Visit Ethanol Plant

Cindy Zimmerman

VeraSun ObamaThe White House has confirmed that President Obama will be visiting a Missouri ethanol plant this week. It will mark the first time Obama has visited a working ethanol biorefinery, although he was the guest speaker at the ribbon cutting of the now-bankrupt VeraSun plant in Charles City, Iowa when he was a presidential candidate.

poet maconAccording to the White House, Obama will tour POET Biorefining in Macon, Mo. and “talk to workers about what they are experiencing during these tough economic times and share ideas for rebuilding our economy in the long term.” The president is scheduled to “tour a local farm and visit with the family who operates the farm” in Missouri. The visits are part of what the administration calls the president’s “Main Street Tour,” but neither event will be open to the public. Tickets are being distributed for a speech that evening in Quincy, Ill.

Ethanol, Ethanol News, Government

More Funds for Verenium Demo Cellulosic Plant

Cindy Zimmerman

VereniumVerenium Corporation has been awarded an additional $4.9 million from the U.S. Department of Energy (DOE) to fund ongoing activities at its demonstration-scale cellulosic ethanol facility in Jennings, Louisiana.

“We are very pleased to receive this additional funding from the DOE, particularly given the critical work currently being performed at Jennings to optimize our cellulosic process,” said Carlos A. Riva, President and Chief Executive Officer at Verenium. “I believe this award demonstrates further the DOE’s support for our technology and commitment to developing a cellulosic ethanol supply industry.”

The funding is an extension of the grant previously awarded to Verenium in 2008 under a DOE program supporting the development of demonstration-scale cellulosic ethanol biorefinery plants. The company plans to use the additional funds to support on-going cellulosic technology and process optimization at the Louisiana facility.

Cellulosic, Ethanol, Ethanol News

POET Ups the Cellulosic Ethanol Ante

Cindy Zimmerman

Jeff BroinThe largest ethanol producer in the world intends to be directly or indirectly responsible for the production of 3.5 billion gallons of cellulosic ethanol by 2022.

Speaking at the National Press Club in Washington, D.C., POET CEO Jeff Broin said they have made enough progress on technology and feedstock development to break ground on their first cellulosic ethanol plant in Emmetsburg, Iowa later this year. “By 2022, POET plans to be responsible for 3.5 billion gallons of cellulosic ethanol production by adding the technology to our existing facilities, licensing our technology to other producers and finally, transferring our technology to other forms of biomass such as wheat straw, switchgrass and municipal waste,” Broin said. That volume would represent over 20 percent of the cellulosic ethanol mandated in the Renewable Fuel Standard.

Specifically, one billion gallons of production capacity will come from adding the technology to POET’s existing network of 26 corn-based ethanol plants, while licensing that technology to other corn-based ethanol producers would add another 1.4 billion gallons of production capacity. Another 1.1 billion gallons of production capacity will come from a wide variety of other feedstocks from across the U.S, either produced by POET or through joint ventures and opportunities where POET Biomass provides logistics support to other producers.

POET submitted its application for a loan guarantee with the U.S. Department of Energy to build the Emmetsburg plant. “If we get that favorable ruling, we told the DOE that we will start construction by the end of this year, which puts us on track to start up the facility in early 2012,” said Broin.

Cellulosic, Ethanol, POET

ZeaChem Moves Closer to Cellulosic Ethanol

Cindy Zimmerman

ZeachemJust in time for Earth Day last week, Colorado-based ZeaChem announced it had successfully produced commercial-grade ethyl acetate, a commercial grade “green chemical,” from woody biomass instead of oil. The ethyl acetate can either be sold to chemical manufacturers or converted into ethanol through hydrogenation.

“These results demonstrate ZeaChem’s ability to produce another valuable bio-based intermediate chemical on the road toward cellulosic ethanol production,” said Jim Imbler, president and chief executive officer of ZeaChem.

ZeaChem is now testing the downstream applications including hydrogenation, which is the final step in making cellulosic ethanol. The company intends to break ground on a demonstration plant in Boardman, Ore. in the near future, but has already begun construction on the equipment at their pilot plant in Hazen, Colo.

Cellulosic, Ethanol, Ethanol News

Military Tops in Alternative Fuels Use

John Davis

A new report says America’s warfighters are leaders in the use of alternative fuels.

This story from ExecutiveGov.com says a Pew Charitable Trust report has good news about the U.S. Department of Defense’s use of solar, geothermal and biodiesel:

According to [Phyllis Cuttino, director of Pew Charitable Trusts’ climate and energy programs], DoD accounts for 80 percent of the U.S. government’s energy consumption, which amounts to 330,000 barrels of oil and 3.8 billion kilowatts of electricity per day for more than 500 major military installations. However, she said, the department is working to meet its stated goal of having one-fourth of its energy come from renewable sources by 2025.

The report, “Reenergizing America’s Defense: How the Armed Forces Are Stepping Forward to Combat Climate Change and Improve U.S. Energy Posture,” details how the department and military services are progressing toward that goal. Amanda J. Dory, deputy assistant secretary of defense for strategy; Navy Secretary Ray Mabus; and John W. Warner, a former Navy secretary, were involved in the report and the conference call.

The decreasing reliance on fossil fuels “will make us better warfighters,” Mabus said, by reducing dependence on oil from volatile nations, and by freeing up warfighters from delivering as much fuel and reducing the high-risk of attacks on convoys that carry it.

In Afghanistan, troops are using solar-powered water purification systems to decrease the use of fossil fuels and the need to haul water, Mabus said. Marines there are using things such as spray-on insulation to keep tents warm in winter and cool in summer, and Marines at Marine Corps Base Quantico in Virginia are testing alternative fuels and other products to reduce the need to ship fuel to Afghanistan, he said.

Additional examples of how the Navy is going green include developing a carrier strike group that will run completely on alternative fuels; powering the Naval Air Weapons Station China Lake by geothermal sources; and commissioning the USS Makin Island, a large-deck amphibious ship propelled by both gas and electric engines.

And don’t forget, it was just last month that the Air Force flew for the first time an A-10 Thunderbolt II, better known as the Warthog, on a biomass-based jet fuel.

Biodiesel, Geothermal