RFA Offers RFS2 Information for Producers

Cindy Zimmerman

Renewable Fuels Association LogoUnder the expanded Renewable Fuels Standard, or RFS2, all producers of ethanol regardless of feedstock will be required to register with the Environmental Protection Agency (EPA). In an effort to help ethanol producers understand what they need to do, the Renewable Fuels Association (RFA) has created two documents intended to provide producers with information they need to comply.

First, there is a comprehensive 29-page summary that includes detailed explanations of the steps necessary to help guide both grain ethanol and cellulosic ethanol producers through the process. RFA has also developed a shorter registration checklist that includes all the key steps and deadlines for ethanol producers to register and begin generating Renewable Identification Numbers (RINs) necessary to track the required use of ethanol.

Many of the dates for compliance are approaching quickly and RFA officials encourage producers to review these documents for information as soon as possible and to consult with legal counsel for specific questions related to individual operations.

Ethanol, Ethanol News, RFA

Record Global Ethanol Production Forecast

Cindy Zimmerman

Global RFAThe Global Renewable Fuels Alliance (GRFA) has released its 2010 production forecast for ethanol which indicates a positive trend for growth in the industry.

Total ethanol production for 2009 was 73.9 billion litres (19.5 billion gallons) according to data assembled by F.O. Licht. The GRFA predicts global production will reach 85.9 billion litres (22.7 billion gallons) in 2010, up more than 16 percent over last year. GRFA notes that level of production would displace the need for 370 million equivalent barrels of oil globally.

According to the organization, the United States is still the world leader in ethanol manufacturing with more than 45 billion litres (12 billion gallons) of ethanol production projected for this year. At the other end of the spectrum, many developing countries including Nigeria and Malawi are turning to ethanol to boost their economies and secure their future energy needs.

Ethanol, Ethanol News, International

Company Promotes In-Field Production of “Sorganol”

Cindy Zimmerman

An Iowa inventor and entrepreneur is promoting a harvester he developed that can produce ethanol from sweet sorghum right in the field.

Lee McClune of Knoxville, Iowa invented the SORGANOL® Process (PatPend) and Sor-Cane Harvester after studying research done at Iowa State University in the 80s on the potential of producing ethanol from sorghum. According to McClune, the harvester acidifies and filters the juice from the sorghum stalks as they are harvested. “The appropriate yeast agents are added or metered in as the juice is pumped from the transporter into the storage containers,” he explains in a promotional brochure. “A few hours later the sugar conversion to ethanol is complete.” McClure claims some varieties of sweet sorghum can produce as much as 1000 gallons of ethanol per acre and he calls it “America’s Sugarcane Ethanol.”

Oklahoma State University started studying the process a couple of years ago and found some merit to the concept of actually fermenting the juice in the field to make ethanol. McClune believes the process can be utilized to make ethanol production more sustainable and potentially even carbon-neutral.

For more information, contact McClune at leemcclune@hotmail.com.

Ethanol, Ethanol News, sorghum

Growth Energy Offers Brochure on Pumps for Ethanol

Cindy Zimmerman

Growth Energy has introduced their new 2010 E85/blender pump brochure. The six panel brochure includes frequently asked questions on E85, blender pumps and flexible fuel vehicles (FFVs). The entire inside of the brochure includes a matrix-like listing of FFVs offered since 1995.

Although many newer model FFVs are labeled on the back of the vehicle, these brochures are the marketing tool Growth Energy recommends for a retailer to inform customers of which vehicles are E85 compatible. They assist with the problem of consumer “misfueling” at the pump. Currently there are over eight million FFVs on American roads. They include newer models by General Motors, Ford, Chrysler, Nissan, Toyota and Mercedes. Older models include Mazda and Isuzu.

To order the 2010 E85/blender pump brochure, click here. Growth Energy also offers various other items for ethanol fuel retailers, such stickers, banners, pump toppers and marquees. In addition, there’s some just for fun stuff available on the website, including bumper stickers, key chains, hats and decals.

E85, Ethanol, Growth Energy

Daryl Hannah Promotes E85 in California

Cindy Zimmerman

Actress/activist Daryl Hannah went on the road for ethanol in California this week with her “Kill Bill” 1979 Pontiac Trans Am, which was converted to run on up to 85 percent ethanol.

Hannah was in Santa Cruz Tuesday to appear on a local Community TV live call-in show called “Eco-Review” and then traveled to Sacramento for a promotional appearance at Flyer’s fuel station. She appeared with ethanol advocate David Blume, author of “Alcohol Can Be a Gas” and founder of the International Institute for Ecological Agriculture (IIEA).

Together they presented a briefing on emissions test results from a study conducted at a California certified smog station using Hannah’s 1979 Pontiac Trans-Am, which appeared in the movie “Kill Bill.” The testing compared exhaust emissions of the vehicle using unleaded gas with E-10, E-15, and E-85 fuel blends and found significant reductions of carbon monoxide, hydro carbons and nitrous oxide as the ethanol blends increased.

Sacramento biofuels correspondent Paul Wikoff reports, “Hannah and Blume expressed the virtues of ethanol fuel, as well as stressing the importance of E15 being accepted by the EPA this summer as an allowable fuel blend for all vehicles. As their 1979 Trans Am demonstrates, higher ethanol fuel blends can be safely and successfully used in older vehicles. Blume stressed that he and thousands of other U.S. citizens have been filling their fuel tanks of such older vehicles for years without trouble, while reducing air pollution and dependence on foreign oil.”

Thanks to Wikoff for the photos and information.

blends, E85, Ethanol, Ethanol News

Bipartisan Bill Would Save Jobs and Help Ethanol Grow

Cindy Zimmerman

Bipartisan legislation introduced Thursday will help preserve jobs in the renewable energy industry and accelerate the development of cellulosic ethanol, according to its sponsors. The Renewable Fuels Reinvestment Act sponsored by Reps. Earl Pomeroy (D-ND) and John Shimkus (R-IL) unveiled legislation would extend the current Volumetric Ethanol Excise Tax Credit (VEETC), the Small Ethanol Producers Tax Credit and tariff on imported ethanol for five years and extend the Cellulosic Ethanol Production Tax Credit for three years.

Congressman Pomeroy said, “At a time when our economy is struggling, we cannot afford to let these tax incentives expire and stymie the growth we have seen in our ethanol industry.”

“Extending the ethanol and cellulosic tax credits helps give much needed certainty to the industry and will continue to help our nation’s energy security,” said Congressman Shimkus.

Leaders of the Renewable Fuels Association (RFA), Growth Energy and the National Corn Growers Association (NCGA), joined the congressmen in a Thursday afternoon press conference at the Capitol to introduce the bill. Pictured from left to right are RFA President Bob Dinneen, Congressman John Shimkus (R-Ill.), Growth Energy CEO Tom Buis, Congressman Earl Pomeroy (D- N.D.), with NCGA president Darrin Ihnen at the podium.

“The extension of VEETC would contribute to energy independence, create and secure thousands of jobs in rural America and allow for a stronger agriculture sector,” said Ihnen, a grower from South Dakota.　

Growth Energy just released a study showing that if the tariff on foreign ethanol is allowed to expire at the end of the year, extreme job losses and the loss of billions of dollars in economic activity would follow. The 10 year projection, calculated by the University of Missouri’s Community Policy Analysis Center, found 39,506 jobs would be lost in the first year after the tariff lapses, 115,642 in the second year, and 161,384 in the third year. The decline in economic activity following the lapse of the tariff was calculated at $9.2 billion the first year, $26.4 billion the second year, and $36.7 billion the third year – and remaining in the double digits during the 10-year projection, hitting $21.2 billion in 2021.

“Without the tariff, American taxpayers will be allowing foreign-subsidized ethanol to subvert American companies and American workers,” said Growth Energy CEO Tom Buis. “It would replace our nation’s addiction to foreign oil with dependence on foreign ethanol – and not make our nation one bit more energy secure.”

Joining Reps. Pomeroy and Shimkus as co-sponsors of the bill are 27 other members of Congress. A companion bill in the Senate is expected soon.

ACE, Ethanol, Ethanol News, Government, Growth Energy, NCGA, RFA

Buckeye Wind Project Given Green Light, But…

John Davis

Fifty wind turbines could soon be turning, cranking out green power in East Central Ohio’s Champaign County … but there are some caveats.

This story from Springfield (OH) News-Sun says the Ohio Power Siting Board has given Everpower Wind Holdings Inc. the green light for the Buckeye Wind Project, which will be one of the first utility-scale wind projects in the state:

Originally, the application submitted to the OPSB sought to build about 70 turbines, but the board voted not to permit 16 of the proposed turbines because they are viewed as a potential hazard to aviation at Grimes and Weller air fields near Urbana. Two additional turbines will not be sited because they did not meet minimum setback requirements. The turbines are supposed to be built 1,000 feet back from roads and structures. In all, there were about 70 conditions required for the project.

Everpower officials say there’s more to be done before groundbreaking, but this decision from the board moves the project forward.

Wind

Camelina to Produce 1 Bil Gallons of Biodiesel by 2025

John Davis

A market research and advisory firm is predicting that camelina will be the feedstock for a billion gallons of biofuels a year by the year 2025.

In their new report, entitled “Camelina Aviation Biofuels Market Opportunity and Renewable Energy Strategy Report,” researchers at Biomass Advisors say the non-food energy crop will be producing biofuels for the aviation and biodiesel sectors, accounting for 25,000 new jobs, more than $5.5 billion in new revenues and $3.5 billion in new agricultural income for U.S. and Canadian farmers:

The report follows recent announcements by Sustainable Oils and Alt-Air, among others, to provide 100 million gallons of Camelina-based jet fuel to a consortium of 15 airlines starting in 2014. Camelina Aviation Biofuels provides an objective, in-depth assessment of Camelina and the market drivers behind aviation industry activity…

The forecast is based on multiple factors including available land, historical trends in land-use change, and crop yields. It also includes an overview of relevant biofuel market and policy drivers, as well as emerging legislation and regulation creating a market for sustainable energy crops like Camelina. The report provides a detailed analysis of Camelina economics, including biofuel feedstock costs, petroleum parity analysis, and a summary of more than 75 Camelina research projects in over 20 U.S. states.

The researchers credit what looks like the upcoming renewal of the federal $1-a-gallon biodiesel tax incentive and camelina’s ability to defuse the food versus fuel argument for their optimism about the grain.

Biodiesel

Northern Iowa to Get New Biodiesel Plant

John Davis

Three acres of farmland in northern Iowa could soon be home to a 3-million-gallon-a-year biodiesel plant.

The Mason City Globe Gazette reports that the Mt. Valley biodiesel refinery, using grease, soy, sunflower seeds in a closed-loop, emissions-free facility, will be the first of its kind for the Hawkeye State:

“The land here has always been very productive,” [Byron] Tweeten, chairman and CEO of refinery owner Growth Design Corp., said Wednesday during an informational meeting for neighbors and potential investors at his home. “And why not use a small portion of it to build economic development in this area, create jobs, and do something great for the nation, called ‘bring us to energy independence by using waste for renewable energy’?

“I think every citizen in this area would absolutely endorse what I just said as a really important idea,” Tweeten said.

Groundbreaking on the $8.5 million project will be in May, contingent on completion of an environmental assessment by the U.S. Department of Agriculture.

Construction is expected to take about nine months.

Biodiesel

RFA Pleased with Bill to Extend Ethanol Incentives

Cindy Zimmerman

The Renewable Fuels Association today praised the Renewable Fuels Reinvestment Act (RFRA) introduced by Representatives Earl Pomeroy (D-ND) and John Shimkus (R-IL). The bill would extend the $0.45 Volumetric Ethanol Excise Tax Credit (VEETC), commonly called the blenders’ credit, and the secondary tariff on imported ethanol until December 31, 2015. It would also extend the Small Producers Tax Credit and the Cellulosic Ethanol Production Tax Credit to January 1, 2016.

Renewable Fuels Association Logo“Passage of the RFRA will provide investors with the long term stability needed to bring next generation technologies to commercialization. Likewise, it allows current ethanol producers to invest with confidence in new efficiencies to further improve upon ethanol’s economic and environmental benefits,” said Renewable Fuels Association President Bob Dinneen. “Representatives Pomeroy, Shimkus and their fellow cosponsors are showing tremendous leadership and foresight. I urge all members of Congress to take this opportunity to learn the real facts about American ethanol production and, ultimately, pass this bill as soon as possible.”

Last week, the RFA released a study detailing the damage that would be inflicted upon the domestic ethanol industry if the tax credits were allowed to expire, which would include the loss of 112,000 jobs and the reduction of domestic ethanol production by 38 percent.

Chuck Zimmerman interviewed Bob Dinneen, who participated in a press conference today introducing the bill. Listen to or download that interview here:

Audio, Ethanol, Ethanol News, Government, RFA