Ohio Ethanol Supporters Visit DC Lawmakers

Joanna Schroeder

A delegation of four ethanol supporters from Ohio were welcomed today in our nation’s capital by Growth Energy. The visit is the most recent in a series of fly-ins organized by the ethanol association to show lawmakers the depth of support for federal policy that encourages the growth and continued development of ethanol.

The delegation includes:

  • Mark Borer, GM of POET Biorefining – Leipsic
  • Robert Flynn, GM of POET Biorefining – Fostoria
  • Dave Brooks, GM of POET Biorefining – Marion
  • Mike Irmen, Director of Ethanol Services, Andersons, Inc.

“As representatives of Ohio’s ethanol plants, we are excited about the opportunity to visit Ohio’s elected officials and discuss the many economic benefits that the industry is providing to Ohio’s citizens,” said Borer who is also the President of the Ohio Ethanol Producers Association. “Ohio has seen rapid growth in ethanol producing capabilities since 2008 and it has had tremendous impact on our employees, farmers and local communities.”

Borer continued, “This recent growth has given Ohio the latest technology and some of the most capable facilities in the nation and we look forward to working with our representatives in support of the industry to ensure we maximize the economic and environmental benefits, while positioning America for the energy independence that we so desperately need.”

While in D.C., the delegation will personally meet with Sen. Sherrod Brown (D), Reps. Patrick Tiberi (R), Steve Austria (R), Jim Jordan (R), Zack Space (D) and Bob Latta (R). In addition, the Ohio group will meet with staff members of Sen. George Voinovich (R), Rep. Marcy Kaptur (D) and House Minority Leader John Boehner (R). The meetings will focus on how the expansion of America’s ethanol industry could help strengthen the U.S. economy by creating jobs and reducing our country’s dependence on foreign oil.

Ethanol, Growth Energy, News

RFA’s Bob Dinneen to Address World Leaders

Joanna Schroeder

The World Biofuels 2010 conference will kick off in Seville, Spain, tomorrow and Bob Dinneen, President and CEO of the Renewable Fuels Association, will address world leaders. In anticipated remarks, Dinneen will challenge the claims that American ethanol production can’t cost compete with other producers such as Brazil. In addition, Dinneen will address misperceptions about indirect land use.

“Despite claims from other ethanol producers, America is the world’s low cost producer of ethanol today,” said Dinneen. “Advancements in ethanol production technologies together with the unprecedented productivity of American farmers allow American ethanol producers to cost-effectively supply domestic markets and increasingly those around the world.”

With consumer sensitivity to prices at the pump heightened with recent events, it is interesting to note that ethanol has sold as a discount to gasoline by as much as 80 cents per gallon wholesale before any tax incentives were incorporated. The price coupled with incentives should have saved consumers 12 cents per gallon on E10. According to RFA, by comparison, if the gasoline were blended with Brazilian ethanol, the price would be 11 cents higher per gallon.

Dinneen will also address the growing presence of American ethanol producers in the world markets with 2010 expected to break all records for fuel ethanol exports.

“The emergence of U.S. exports of ethanol to markets once dominated by Brazil demonstrates that a true global market for ethanol is developing.” said Dinneen. “As the low cost producer of ethanol today, America is enjoying the same opportunities that many thought were solely the province of Brazil. Such competition in the world market undermines the continued claims that U.S. and other nations’ ethanol import policies are barriers to trade. Rather, inconsistent policies that vacillate based on the fortunes of domestic ethanol producers introduce the kind of uncertainty that world trade abhors. As the market is clearly showing, consistent policies across the globe will reward the low-cost producer. “

Ethanol, Ethanol News, International, RFA

Poll Shows American Frustration Over Oil

Cindy Zimmerman

As Congress holds hearings on the oil spill, a new study finds most Americans are ready to do what it takes to reduce dependence on oil.

CFAThe Consumer Federation of America (CFA) report shows that, “even before the Gulf oil spill and Congressional hearings, Americans strongly supported reduced oil consumption and tougher fuel economy standards. In a late March survey commissioned by CFA and undertaken by Opinion Research Corp. (ORC), 87% of respondents said it is “important that the country reduce its consumption of oil,” while more than half (54%) said this was very important.”

“Our survey data strongly suggest that the American public is getting very close to the point, if they’re not already there, where they are prepared to support radical measures to break our nation’s dependence on oil and oil imports,” said Jack Gillis, CFA Director of Public Affairs.

However, the report only appears to focus on increasing fuel economy for vehicles as the answer to lowering dependence on oil, specifically that the federal government “should increase its fuel economy standard to 50 miles per gallon by 2025.” Increasing the number of flex-fuel vehicles on the road and availability of ethanol as an alternative fuel were not addressed.

Oil

Oklahoma House Passes Renewable Energy Bill

Joanna Schroeder

The Oklahoma Energy Security Act, House Bill 3028 sponsored by House Speaker Chris Benge of Tulsa, was passed yesterday by the House, 91-2. The bill now goes to the Senate for consideration. If the bill passes the Senate, Oklahoma will become the 32 state to have passed state renewable energy legislation. The bill would require 15 percent of all electricity generated in Oklahoma to come from renewable sources such as wind by 2015.

Although Oklahoma is a major natural gas and oil state, it imports significant amounts of coal to generate its electricity. Under the leadership of Democratic Governor Brad Henry, the state pushed for the development of wind energy and biofuels and at the end of 2009, boasted 1,130 megawatts of installed wind capacity, placing the state fourth in the Midwest behind Iowa, Minnesota and North Dakota for total wind generation. The states utilities are now planning projects to improve the grid in order to handle the extra capacity generated by additional wind energy projects.

Interesting to note, Oklahoma’s bill sets a higher standard than either of the versions of the Federal Renewable Energy Standard that is still in consideration. The House bill calls for 20 percent renewables by 2020 with the option of 5 percent coming from efficiency improvements. In addition, state governors can ask for a weaker standard if they can’t meet the Federal mandate. The Senate, however, sets the bar lower with only 15 percent of the nation’s electricity coming from renewables by 2020 while simultaneously a large portion of that energy gain coming from efficiency improvements.

Legislation, News, Wind

Cellulosic Ethanol in Finland

Cindy Zimmerman

chempolisA biorefinery company based in Finland has opened a plant for processing non-food biomass into cellulosic ethanol in Oulu. The Chempolis facility was officially opened last week by the Finnish Prime Minister, Matti Vanhanen.

“The third-generation biorefining technology that we have developed enables us to produce multiple products from agricultural residues using all the vegetable matter they contain, maximising the added value that we can offer. This is a definite plus in terms of both operating costs and the environment,” says Matti Sundberg, the Chairman of Chempolis’ Board of Directors.

Chempolis has invested some €20 million in its new biorefinery, which also functions as a development and marketing centre for testing customer-sourced raw materials and producing sample batches of bioethanol, biochemicals, and papermaking fibres. The plant is capable of processing 25,000 t/a of non-wood and non-food raw material.

Cellulosic, Ethanol, Ethanol News, International

NextCAT’s Technology Could Cut Biodiesel Costs

John Davis

A Detroit-based technology company is looking to help make biodiesel more competitive in the marketplace.

Xconomy/Detroit says NextCAT wants to make a catalyst that will help convert some of the cheaper feedstocks, such as algae and recycled cooking oil, into biodiesel and hopes to get some funding to get the project going:

NextCAT, which is located at the TechTown business incubator in Detroit, signed an option agreement to produce technology developed at the National Biofuels Energy Laboratory at Wayne State University in Detroit. The company also recently received $50,000 from the Michigan Microloan Fund and another $50,000 from the First Step Fund, newly created by the New Economy Initiative, a Detroit-based philanthropic partnership.

That $100,000 will take the company a long way—far enough to conduct its first pilot plant test sometime in the next 90 days. Leppek is a technology commercialization fellow at Wayne State on loan full-time to NextCAT. The university pays his salary. Founder Charles Salley and other executives are working without compensation.

Leppek says the company has “also received indications” that it will receive a Small Business Innovation Rearch Grant from the National Science Foundation as early as July.

NextCAT believes U.S. biodiesel plants can be retrofitted with the company’s new process and catalyst and can produce biodiesel cheaper.

Biodiesel

E85 Border Battle in Wisconsin and Minnesota

E85 will sell for 85 cents off on opposite sides of the St. Croix River on Thursday, May 27. One station in Westland Lake, Minnesota and another in Hudson, Wisconsin will hold the promotions for flexible fuel vehicles (FFVs) from 4 – 6 p.m.

The promotions are supported by the Minnesota Corn Growers Association, Wisconsin Corn Growers Association, Holiday Companies, Erickson Oil, American Lung Association of the Upper Midwest and MN & WI Clean Air Choice Teams. Wisconsin’s Alice in Dairyland will also be on hand to help fuel FFVs on the east side of the border. The promotion locations are:
Holiday • 215 Manning Ave N, West Lakeland (Lake Elmo), MN
Freedom Valu Center • 210 South 2nd St, Hudson, WI

Minnesota Corn Growers Association President DeVonna Zeug recently made the statement, “Ethanol pumps $6 billion into Minnesota’s economy and is helping to sustain over 26,000 jobs. Ethanol is creating jobs and opportunity in communities across our state at the same time it is reducing our country’s dangerous and costly dependence on foreign oil.”

Brian Long, President of the Wisconsin Corn Growers Association stated similar for his state, “Ethanol pumps billions of dollars each year into Wisconsin’s economy and farm families, while also helping reduce our nation’s costly dependence on foreign oil.”

Currently, Minnesota has the most E85 locations throughout the country with 355. Wisconsin boasts 143 stations.

E85, Ethanol, Ethanol News

Corn Growers Want End to Indirect Land Use Change

Cindy Zimmerman

NCGAThe National Corn Growers Association (NCGA) believes that it’s time to throw out the whole debated theory of indirect land use change.

“In 2010, the U.S. Department of Agriculture predicts our corn farmers will produce more than 300 million more bushels than just three years ago, and do so on nearly 5 million fewer acres,” NCGA President Darrin Ihnen said in a news release. “International indirect land use change theory completely ignores or significantly downplays grower ingenuity and modern agronomy. This junk science needs to go the way of the horse-drawn plow.”

NCGAThe unproven theory and models related to it are being used by the California Air Resources Board to implement that state’s low carbon fuel standard in such a way that ethanol made from corn would not qualify for use. Ihnen points to the recent Purdue study that found California is overestimating the greenhouse-gas impact of land use changes related to corn ethanol by a factor of two.

“The inclusion of model results in policy before the science has been fully established is not just a problem of rushing to judgment; in this case, it goes against the goal of reducing greenhouse gas emissions,” Ihnen said. “By saddling corn-based ethanol with incorrect emissions, the California standard may actually increase its reliance on petroleum or foreign sources of ethanol, therefore worsening the environment and our national economy.”

The Purdue research also reflects the scientific community’s rejection of the initial paper that brought the land use change theory to the front burner in February 2008, according to the Renewable Fuels Association. Since then, the estimated emissions purportedly occurring from the indirect land use change penalty have fallen by nearly 90 percent.

corn, Ethanol, Ethanol News, Indirect Land Use, NCGA, RFA

Ask POET Video Series Debuts

Joanna Schroeder

Consumers. We all have questions about ethanol and oftentimes don’t know where to go to find the answers. Now, you have a new resource for information – the monthly video series “Ask POET,” hosted by Nathan Schock. The idea is that for each episode, Nathan will take a question from the public and then identify and interview the most appropriate person within POET to provide the answer.

I had the opportunity to ask POET a question and it became the kick off for the first episode. I asked, “When do you think consumers will be able to go to the gas station and fill up their cars with cellulosic ethanol?” A point of reference, POET is the farthest along in the U.S. on commercially producing cellulosic ethanol from corn stover with their project coined Project Liberty. My question was answered in great detail and with great insight from POET CEO Jeff Broin.

In the next episode, Broin responds to a question from Jim Lane, Editor of Biofuels Digest who asked what the industry can do after E15 to prevent another “blend wall.” Lane also asked Broin to explore how America can change its fleet over to flex fuel vehicles so that higher blends of ethanol can be more widespread and available.

“As the nation’s largest ethanol producer, we need to take an active and visible role in helping the public understand the many issues surrounding ethanol,” Schock, POET’s Director of Public Relations, said. “Although the ethanol industry is still relatively young, POET has been around for more than two decades and is in a great position to answer the many questions that come up regarding the renewable fuel that is being used in most cars today. ‘Ask POET’ will help do that.”

For upcoming episodes, no question is off limits. You can subscribe to POET’s RSS feed and get updates about the program here.

Ethanol, Ethanol News, Video

Alliance AutoGas Launches Propane Conversion Program

Joanna Schroeder

Alliance AutoGas, with the support of the Propane Education & Research Council (PERC), have received $8.6 million in funding from the American Recovery & Reinvestment Act of 2009 to fund a Southeast Propane Autogas Development Program. The program will help to build at least 17 propane refueling stations as well as convert 1,200 vehicles to propane in nine southeast states. According to PERC, propane, when used to power on-road vehicles, is known worldwide as autogas. Nearly 90 percent of propane supplies are produced in the U.S. and 7 percent is imported from Canada.

“We are encouraged that this grant provides an opportunity to showcase the viability of autogas and its benefits,” said Stuart Weidie, president of Alliance AutoGas. “Autogas is recognized as the number one alternative fuel worldwide. It’s almost entirely domestically produced and is available right here, right now.”

Project management for the program will be shared by Virginia Clean Cities and James Madison University. Alliance AutoGas’ founding partners, Blossman Gas and American Alternative Fuel, along with certified conversion partners, will perform the vehicle conversions and provide the infrastructure for both private and public fueling stations. Vehicles that will be targeted for conversions include taxis, limousines and vans.

It is projected that the program will displace at least 15 million gallons of gasoline over four years as well as reduce harmful tailpipe emissions. A website that will track the conversion information along with the greenhouse gas emission reductions will launch later this year.

“The rollout of this Alliance AutoGas project will result in the wider use of propane vehicles, which will help us reach our county’s environmental and national energy security goals,” concluded Brian Feehan, vice president of PERC.

News, Propane