Biodiesel Board Renews Call for Incentive Renewal

John Davis

The National Biodiesel Board has renewed its efforts to get Congress to renew the $1-a-gallon federal biodiesel tax incentive that expired at the end of 2009. In this latest move, the NBB has sent a letter to Congressional Leadership urging Congress to take immediate action to retroactively reinstate the incentive and was joined by the Petroleum Marketers Association of America; NATSO; Society of Independent Gas Marketers of America; New England Fuel Institute; American Soybean Association; National Farmers Union; and American Farm Bureau Federation:

“The lapse of the biodiesel tax incentive has harmed the domestic biodiesel industry and placed 23,000 jobs in immediate jeopardy. If extension of this effective incentive continues to languish, we risk losing the significant job creation, energy security and environmental benefits associated with the domestic production and use of biodiesel,” stated Manning Feraci, NBB’s Vice President of Federal Affairs.

NBB officials say the lack of the tax incentive has caused a severe retraction in the domestic production and use of biodiesel.

Biodiesel, NBB

Iowa Biodiesel Backer Awards Applications Open

John Davis

Another round of Biodiesel Backer Awards will be handed out by the Iowa Renewable Fuels Association to four K-12 Iowa schools at the 47th Annual School Transportation Conference and Trade Show in Des Moines on July 20. The $2,500 grants will go to Iowa schools that promote biodiesel:

“Fueling school buses with clean, renewable biodiesel is a key component of student health and school transportation safety,” said IRFA Biofuels Manager Grant Menke. “That makes an event focused on the safe transportation of students to and from school a natural place to present Biodiesel Backer Awards. IRFA wholeheartedly thanks the Iowa Pupil Transportation Association for inviting us back to participate in this important event.”

Applications are due to IRFA by May 28th. More information is available at the IRFA’s Web site.

Biodiesel

Iowa Airs “Commercial” Success of Biodiesel

John Davis

The organizations in Iowa that promote biodiesel are taking to the airwaves to promote the green fuel in the Hawkeye State.

The Iowa Biodiesel Board, Iowa Soybean Association and Iowa Renewable Fuels Association are bringing some public service announcements to TV stations in Iowa to increase the awareness of the many benefits that biodiesel brings to Iowans:

The 30 second spot highlights biodiesel’s contributions to green jobs, energy security and economic development. It is likely to air in cities such as Des Moines, Cedar Rapids, Sioux City, Waterloo and Davenport.

Public opinion research shows that 78 percent of Iowans have heard of biodiesel, and nearly 4 out of 5 say they would use biodiesel if they had the chance, according to the IBB.

“We want Iowa to be the national leader in biodiesel production and use, and education is a big part of that effort,” said Randy Olson, IBB executive director. “Biodiesel is something every Iowan should support. It protects green jobs, energy security and the environment. This PSA captures just how much biodiesel benefits society, in a way that everyone can understand.”

The PSA was originally developed by the National Biodiesel Board and first ran in January. It will run starting this week for part of this spring and again in August and September.

Biodiesel, Video

Ethanol Rocket Racers Take to the Skies

Joanna Schroeder

The Rocket Racing League is taking back the skies. The five-year old league which has launched a campaign to become “NASCAR with rockets” is planning the final details on a demonstration of its X-Racer planes next week in Tulsa, Oklahoma. While these “rockets” will have a sleeker look and more crowd appeal, they will continue to run on the same fuel – ethanol. The demonstration is set for April 24 at the QuikTrip Air and Rocket Racing Show and this will be the first paying audience to see them fly since the EAA AirVenture show in Oshkosh, Wisconsin in 2008.

X-Racers is the name of the rocket powered aircraft being designed to compete in the Rocket Racing League. The X-Racers are powered by a rocket engine that emits a long flame and a thunderous roar that can be felt and heard for miles. The current Mark-II and Mark-III X-Racer designs fly at a speed up to 250 miles per hour and these are the rockets that will be making an appearance at the show in Tulsa.

“We are building an interactive 21st-century entertainment company that combines the exhilaration of racing and the power of rockets, and the available 21st-century technology to make this a personal interactive experience,” said Peter Diamandis, the league’s co-founder and chairman of the board in MSNBC’s Cosmiclog.

In person will not be the only way to see the rockets in action. Eventually, the races will be broadcast on TV. Soon, you’ll even be able to race them yourself with an iPhone and iPod Touch app launching in May. In addition, a game will be available in June for the iPad.

In the meantime, watch the website for more information on upcoming appearances throughout the year. The aerial demonstations will vary from event to event as the league assesses safety and entertainment value but they anticipate that the real races will begin in late 2011.

Ethanol, Miscellaneous, News, Video

Corn Oil from Ethanol Plant to Feed Biodiesel Refinery

John Davis

Mansfield Oil Company has acquired East Fork Biodiesel of Algona, Iowa … a 60-million-gallon-a-year refinery that will get its feedstock of corn oil from Mansdfield’s network of C&N Companies ethanol plants in the Midwest.

This company press release says this will give East Fork a cheap source of biodiesel feedstock while providing a market for those ethanol plants’ corn oil:

”East Fork fits in our network very well in terms of offering our ethanol plants a new local market for a corn oil that provides higher value than simply selling the oil contained in the DDGS into the feed markets. East Fork will have ready access to our major rail logistics hubs in Iowa and provide a reliable supply of biodiesel for our customer base of obligated parties who need to meet new biodiesel requirements under RFS2,”said Jon Bjornstad, President of C&N.

Chris Daniel, General Manager for East Fork stated, “We are very pleased to have selected C&N. Their transparent approach gives us the ability to manage and forecast our costs and margins, and their access to a nationwide market of refiners and blenders in every region of the country gives us great confidence in their ability to secure us the best customers for our product today.”

More information is available on Mansfield’s Web site.

Biodiesel, Ethanol, Ethanol News, News

Growth Design Biodiesel Plant Closer to Reality

John Davis

A new biodiesel plant in Northern Iowa is closer to cranking out the green fuel.

The 3-million-gallon-a-year Growth Design Corp. refinery planned for near Forest City, Iowa, as we told you about last month, could break ground next month, according to this story from KIMT-TV and would the first-of-its-kind facility in Iowa:

It will use what’s called “the MCGYAN process,” which can convert waste products like restaurant grease and leftovers from ethanol plants into biodiesel in a matter of seconds…

Growth Design Corp. CEO Byron Tweeten and Vice President of Operations and Planning Bill Luetscher have spent the past two years making their dream a reality in Forest City…

Luetsher says aside from its speed, the recently developed MCGYAN process, which uses a metal oxide reactor to convert different waste products into fuel, offers several advantages over the traditional way of producing biodiesel.

For one it takes up a lot less space.

“This is something that is going to be a 3500 square foot building, it’s going to be a very small footprint architecturally it will blend in with the environment,” Luetscher said.

Tweeten says they’re also looking at ways of using waste like methane gas to provide electrical power to the plant. He says it’s an effort to close their renewable energy loop.

Check out this video of the project below.

Biodiesel

Pickens Encourages Investment in American Energy

Cindy Zimmerman

“When do we stop investing in OPEC and start investing in America?”

pickensThat’s the question that oil tycoon T. Boone Pickens asked at a House Ways and Means committee hearing Wednesday on “Energy Tax Incentives Driving the Green Job Economy.” Pickens told the panel that he’s for “anything that’s American” when it comes to energy -including wind, coal, solar, hydro, nuclear, geo-thermal, ethanol, propane, or natural gas.

The straight-talking Texan and chairman of BP Capital Management addressed those who discourage tax incentives for renewable energy on the basis of letting the free market work. “If you think OPEC is a free market, you’re a sap,” he said.

Pushing natural gas as an alternative, Pickens said that skeptics say there is no natural gas fueling infrastructure. “If you create the market, the private sector will build it,” he said. “Can you imagine what would have happened if we had told Henry Ford, forget about building the Model T, there’s no filling stations?”

Pickens strongly stressed the need for America to develop an energy plan now. “I’m running out of time, I’m 82 years old next month, and I’ve got to get an energy plan fixed for America because we cannot leave this to generations in the future,” noting his 13 children and grandchildren.

Pickens’ whole opening statement is well worth watching here on the Ways and Means Committee website.

Energy, Ethanol, Ethanol News, Geothermal, Government, Hydrogen, Natural Gas, Propane, Solar, Wind

Mazda to Use E85 in Australian Race

Mazda Australia will use E85 to power its turbo rotary Mazda RX-8 SP at the upcoming Targa Tasmania rally. According to carsales.com, the organizing team of Targa Tasmaia, is encouraging competitors to drive hybrids or cars running on low-carbon-content fuels. Mazda Motorsport has opted to run its turbo rotary rally car on the low-emitting E85 blend fuel. Already used in V8 Supercars, Targa Tasmania is the second major motorsport event in Australia to introduce this renewable fuel with event organisers committed to delivering zero net emissions by the 20th Anniversary event next year.

But, it doesn’t look as though Mazda is going to offer E85 compatible vehicles on a global scale anytime in the very near future. “I guess it’s one of those infrastructure things we have to embrace,” noted Mazda Austrailia MD Doug Dickson. “Ethanol as a fuel has probably lost a bit of prominence recently; it’s probably something that needs to be brought back to the forefront, but then the world tends to be concentrating on electric, where there’s probably far higher costs of infrastructure development than there is for E85.

Targa Tasmania will be held from April 27 – May 3. Driving the E85-powered Mazda RX-8 SP is South Australian Steve Glenney.

E85, Ethanol, Ethanol News, News

Ethanol Report on Prices

Cindy Zimmerman

Ethanol Report PodcastPrices for ethanol are down right now compared to gasoline, which means drivers are saving money at the pump when they fill up with ethanol blends. But we could be saving even more if blenders could add up to 15 percent ethanol in regular gasoline.

In this edition of “The Ethanol Report,” Renewable Fuels Association Vice President for Research Geoff Cooper talks about the current price differential between gasoline and ethanol and how much could be saved if the blend level were higher than the current ten percent.

You can subscribe to this twice monthly podcast by following this link.

Listen to or download the podcast here:

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Higher Ethanol Blends Could Mean Savings at the Pump

Cindy Zimmerman

Renewable Fuels Association LogoAccording to the Renewable Fuels Association, American drivers could be saving 12-19 cents per gallon if more ethanol were allowed in gasoline.

Based on current wholesale prices, ethanol is selling for $0.70-$0.80 less than gasoline before the federal tax incentive for blenders is taken into account. This means gasoline blended with the statutory limit of 10% ethanol (E10) should cost at least 7-8 cents per gallon less at the pump than conventional gasoline without ethanol. However, if blenders were allowed to blend up to 15% (E15) ethanol in each gallon, drivers could be saving up to an additional nickel on every gallon.

The savings are even greater when the value of the $0.45 per gallon tax credit claimed by gasoline blenders is passed through to consumers. Gasoline blenders receive the tax credit for every gallon of ethanol they blend with gasoline. When the full value of the credit is passed through to the consumer on E15, the fuel would be a whopping 19 cents per gallon less expensive than conventional gasoline without ethanol at today’s prices. This translates to a savings of about $3 per fill-up for the average vehicle or approximately $150 per year for the average driver.

“As gas prices soar this spring like every other before it, drivers are being forced to pay higher prices than they otherwise should be,” said Renewable Fuels Association President Bob Dinneen. “Based on the economics today, gasoline refiners and blenders would be clamoring to use more ethanol but are prevented from doing so by EPA. It’s time for EPA to update its fuel regulations and allow for the use of 15% ethanol blends for all vehicles, giving American consumers the break at the pump they deserve.”

The Environmental Protection Agency is currently considering a waiver request to increase the amount of ethanol allowed in a gallon of gasoline from 10 to 15%, which would allow refiners and blenders flexibility to increase the blend level when it is economically advantageous to do so.

Ethanol, Ethanol News, RFA