ACE Conference 2026

Ethanol Starts 2010 With Record Production

Cindy Zimmerman

U.S. ethanol production began 2010 on a record pace. The latest report from the Energy Information Administration (EIA) puts January 2010 ethanol production at an average of more than 818,000 barrels per day, compared to 188,000 in January 2009. EIA also reports fuel ethanol imports of 1.4 million gallons in January.

Renewable Fuels Association LogoEthanol demand, as calculated by the Renewable Fuels Association (RFA), also reached an all time high at 784,000 b/d in January, up from 644,000 b/d a year ago.

RFA President Bob Dinneen says the increased production and demand are good news, but continue to point out the need for increasing the blend level of ethanol in gasoline. “American ethanol producers continue to provide increasing supplies of a renewable alternative to imported oil,” said Dinneen. “Due to antiquated regulations, however, American drivers are being prevented access to increased use of ethanol and ethanol blends. The increase seen in ethanol reserves during a time of great economic advantage in ethanol pricing speaks directly to the need for EPA to allow up to 15% ethanol blends for all vehicles, regardless of model year.”

Ethanol, Ethanol News, RFA

USDA Biomass Crop Assistance Program Successful

Joanna Schroeder

According to Jonathan Coppess, USDA Farm Service Agency Administrator, biomass producers, energy facilities and communities are benefiting from USDA’s Biomass Crop Assistance Program (BCAP). Through April 2, 2010, USDA has approved 4,605 agreements for the delivery of more than 4.18 million tons of biomass and paid eligible biomass owners $165,274,695 in matching payments under BCAP’s first phase. BCAP was established in the 2008 Farm Bill.

“We’ve had dozens of reports from biomass producers, energy facilities and communities that are benefiting from BCAP payments right now, which shows the incredible potential of this innovative program,” said Coppess.

The program authorized USDA’s Farm Service Agency (FSA) to help those producing biomass by providing matching payments for the collection, harvest, storage and transportation of eligible biomass delivered to approved facilities to convert it to biofuels. FSA service centers across the country have issued payments of up to $45 per dry ton for eligible biomass deliveries. Biomass is any organic matter that is available on a renewable or recurring basis including: agricultural commodities, plants, trees, algae, and other animal, vegetative and wood waste materials.

“Congress directed USDA to establish a program to encourage farmers and forest landowners to help develop the biomass supply chain and accelerate energy independence, rural economic development and renewable sources of energy,” said Coppess. “Since we issued initial guidance last June, BCAP has gathered momentum and our efforts to expedite matching payments provided valuable, real-world information and experiences that will inform the crafting of the final regulation, as well as some much-needed economic stimulus in many rural areas.

Once the final rule for the program is approved, it will provide funding for producers of renewable biomass who establish new biomass crops within select geographical areas and will continue to provide matching payments for deliveries of eligible materials. Click here to access charts showing BCAP Collection, Harvest, Storage & Transportation Component and Summary Reports.

biofuels, biomass, Farming, News

Biofuels Benchmarking Annual Report Released

Joanna Schroeder

Today, Christianson & Associates, PLLP (C&A) has released a new in-depth report that looks into ethanol plant efficiency and financial viability. The Biofuels Benchmarking Annual Report is in its 7th year and analyzed the operational and financial performance of more than 50 ethanol plants along five major “bench” areas: overall ethanol industry analysis, regional ethanol plant analysis, production capacity analysis, plant production efficiency analysis and balance sheet analysis.

Brian Jennings, the Executive Vice President for the American Coalition for Ethanol (ACE) notes that this report is yet more proof that ethanol is a sustainable way for our country to produce fuel.

“This report proves that ethanol producers are getting more efficient every day, indicating that ethanol facilities producing WDGS use only about 19,000 BTU’s of energy to make just one gallon of ethanol. As we continue to point out that ethanol is getting more efficient as oil is getting less sustainable, this is the sort of data that helps reinforce and prove our point,” said Jennings.

C&A has the most robust benchmarking programs available for the ethanol industry. The program enables participants to measure themselves in over 90 financial and operational factors on a quarterly basis and compare their results to others in the industry. Ultimately the program helps plants identify their strengths and weaknesses as a tool to improve their financial outlook.

“Not only is this annual report a valuable tool for ethanol producers, it is also a helpful resource for public and private researchers and analysts who are looking for unbiased, independent data and information to assist them in their own analytical efforts,” said Geoff Cooper, Vice President Research for the Renewable Fuels Association.

The Biofuels Benchmarking Report is available for free to all current Christianson & Associates Biofuels Benchmarking participants. In addition, members of the media, academia and current legislative and executive branch members may also receive a free copy. Current RFA and ACE members will receive the report for a discounted amount of $250.00; all others can purchase the report for $500.00. Click here to order your copy.Read More

biofuels, Ethanol, Ethanol News, Research

Constellation Energy Buys Maryland Wind Project

John Davis

Constellation Energy has finished a deal to buy the 70-megawatt Western Maryland Criterion wind project from Clipper Windpower, Inc.

This Constellation press release says the deal includes purchasing 28 Clipper Liberty 2.5-megawatt wind turbines for the project:

“Maryland’s clean energy goals are among the most ambitious in the nation and we’re committed to working with the state to achieve them by investing in an array of solar, wind, biomass and other sustainable energy projects,” said Kathleen W. Hyle, senior vice president, Constellation Energy, and chief operating officer, Constellation Energy Resources. “The market for clean energy products and services is growing rapidly in Maryland and across competitive energy markets nationwide. Investments in sustainable energy sources improve the environment by reducing carbon emissions, spur much-needed job growth and allow us to broaden our clean energy product offerings for customers.”

The project has entered into a 20-year power purchase agreement with the Old Dominion Electric Cooperative for energy and renewable energy credits produced by the wind facility. Old Dominion is a not-for-profit wholesale power provider serving public electric cooperatives in Maryland, Delaware and Virginia.

The project is expected to be operating commercially by the end of this year.

Wind

USDA Watching and Waiting on Biodiesel Incentive

John Davis

Federal ag department officials seem to be rooting for renewal of the $1-a-gallon biodiesel tax incentive to finally pass Congress … but no one from USDA is pressuring lawmakers to get the deal done.

During yesterday’s event in Hawaii, where the U.S. Navy and USDA pledged to work together to produce more biofuels for the service’s renewable energy goals, reporters were able to quiz Ag’s Deputy Secretary Kathleen Merrigan if the Obama Administration was pressuring Congress on the incentive’s renewal. But Hoosier Ag Today reports that her answer was less than inspiring for a biodiesel industry going further under every day without the tax break:

“It’s something Tom Vilsack has spoken publicly about, so we are clearly in support of the kind of tax support that the industry needs at this point. But we’re working with Congress on a number of fronts. We were given a wonderful suite of energy programs as a part of the 2008 farm bill. We are working diligently to get those all up and running, notices and rulemakings that we have to do in this innovative space where there’s not a lot of history of work to build upon. So we are working very closely with our colleagues in Congress on a number of fronts.”

Merrigan wouldn’t offer any guesses when Congress might finally reconcile the two different versions of the American Workers, State and Business Relief Act which includes the House bill to extend the credit through the end of 2010.

Biodiesel, Legislation, USDA

Heartland Develops Biodiesel Purification Column System

John Davis

An Iowa-based maker of biodiesel production equipment has come up with a purification method that makes the handling and removal of purification media easier, safer and more efficient for biodiesel plant operators.

This article from Biodiesel Magazine says Heartland Biodiesel Supply’s patent-pending design got its inspiration from the water treatment industry where ion exchange resin is widely used:

The same column design can be used for Eco2pure or any ion exchange resin—the only difference being the flow direction in the columns. Heartland Biodiesel Supply designates columns to be used for Eco2Pure media as HBD DRY-CLN, and those to be used with ion exchange resins as HBD ION.

The columns are built on a three-way tilt axis for easy draining, whether Eco2Pure media or ion exchange resins are being removed, and can be securely held in place while the bottom hub system is removed in one step, eliminating the need for a crew of workers and heavy equipment to exchange spent media. It also reduces workers’ contact time with the spent, hazardous material, which is laden with caustic, methanol and other chemicals.

Heartland Biodiesel Supply has incorporated its proprietary distribution system into this design, which can extend the life of purification media. Westphal said many system designs on the market result in fractured flow where some of the media in the column do not come into contact with the biodiesel being purified, but Heartland Biodiesel Supply’s new columns create a plug flow that allows the fuel being purified to contact all of the media present in the columns, thereby extending the life of the media at a cost savings.

More information is available on Heartland’s Web site.

Biodiesel

E85 for 85 Cents Off in Vestavia Hills, Alabama

The Dogwood Shell station at 1488 Montgomery Highway, in Vestavia Hills, AL will be selling E85 for 85 cents off for 85 minutes: from 2:15 until 3:40 tomorrow, April 8th. This promotion is to celebrate the involvement of the Brazilian Sugarcane Industry Association (UNICA) as the official ethanol provider for the Indy Racing League cars debuting in the Indy Grand Prix of Alabama race at the Barber Motor Sports Park this weekend.

In addition to the ethanol promotion, E85 customers can win one of five $100 fuel cards. The first 20 will receive two tickets to the race.
UNICA renewed its fuel supply agreement with the Indy Racing League for the 2010 season in November of last year. Under the new agreement, the IZOD IndyCar Series will continue to utilize sugarcane ethanol to fuel its race cars, including at its signature event, the Indianapolis 500.

The agreement calls for UNICA to cover the cost of approximately 53,000 gallons of the 100 percent fuel-grade ethanol to be used by in 2010 by the IZOD IndyCar Series as well as the renewable diesel for the fleet of trucks that delivers cars, related gear and fuel for all races. The deal also calls for UNICA’s Sugarcane Ethanol brand to be featured at all Indy events.

E85, Ethanol, Ethanol News, News

‘Heavy Oil’ Working Group to Launch

Joanna Schroeder

Big Oil baffles me. They are running full-scale ad campaigns touting their work in developing alternative energy sources, (you couldn’t miss them if you watched the Winter Olympics) and then they turn around and file a suit against the EPA for the expanded Renewable Fuels Standard. They claim it is “unlawful and unfair.”

Well, today, according to an article in E&E, Canada is leading the charge to create a consortium of oil groups, to be called the Heavy Oil Working Group, as a way to discuss how to reduce the carbon emission of fossil fuels, especially oil from tar sands. The group is meant for both heavy producers of oil and heavy consumers of oil and it is hoped that environmental groups will also join the discussion.

The talks will commence when the nations gather in Washington for the Energy and Climate Partnership of the Americas, an institute suggested by President Obama last April.  It will be at this event that Canada is asking to add the Heavy Oil Working Group to the roster for discussion. They are hoping that the U.S., Mexico, Brazil, Columbia and Venezuela all join as they all have “unconventional” reserves to tap.  For example, North Dakota is mining oil from tar sands and we will be seeing a dramatic increase in offshore drilling since President Obama approved the action last week.

“The world will continue to depend on fossil based fuels for the next few decades, so our biggest challenge in many ways is to make fossil fuels cleaner,” said Marc LePage the Canadian Embassy’s minister for energy and climate change.

Yes, LePage is right, we do need to make fossil fuels cleaner. Big Oil also needs to quit double talking and choose sides – either you are or you aren’t for energy diversity (I vote for you aren’t) and cleaner fuels. In the current energy, environmental and economic situation our country finds itself in, the only way out is to work together, but it appears that what we’re doing now is working apart.

biofuels, Oil, Opinion

Pine Beetles Provide Feedstock for Biobutanol

Cindy Zimmerman

A nasty little beetle is destroying millions of acres of lodgepole pine trees across the western United States and so far, no one has been able to stop it.

But, in the tradition of making lemonade from lemons, the biofuels industry has been working on ways to use the dead trees for energy – and one company is now claiming success.

Cobalt Technologies of California is claiming to be the first to produce biobutanol from beetle-killed lodgepole pine feedstock. To evaluate the fuel’s viability for commercial vehicles, the company has signed a fuel testing partnership with Colorado State University.

“With this breakthrough, we’ve been able to turn a problem into an opportunity,” said Rick Wilson, Ph.D., chief executive officer of Cobalt Technologies. “Harvesting beetle-killed trees could produce low-carbon fuels and chemicals, establish a foundation for a sustainable biorefinery industry and create jobs, particularly in rural areas. If we use only half of the 2.3 million acres currently affected in Colorado alone, we could produce over two billion gallons of biobutanol — enough to blend into all the gasoline used in Colorado for six years.”

“Clearly, this is a significant achievement and a major step forward toward the production of cellulosic biofuels. Converting beetle-killed pine for biofuels is an extremely difficult process,” said Ken Reardon, professor of Chemical and Biological Engineering at Colorado State University. “If Cobalt can convert beetle-killed wood, it’s likely that the company can make biofuel from almost any cellulosic feedstock.”

Cobalt Technologies has partnered with Colorado State University to perform engine testing with a gasoline-butanol blend made with the biobutanol from beetle-killed wood. The fuel testing will be performed at Colorado State University’s renowned Engines and Energy Conversion Laboratory under the auspices of the University’s Sustainable Bioenergy Development Center.

biobutanol

Book Review – Enough

Joanna Schroeder

As I write this review, I’m sitting on my deck looking out at dozens of acres of avocado, orange and lemon trees. Yesterday, I helped to plant a vegetable garden – the produce being grown for a local restaurant. The irony is that as I am surrounded by abundance here in America, I’m reading about those in other countries who have less than nothing. “Enough Why the World’s Poorest Starve in an Age of Plenty,” written by journalists Roger Thurow and Scott Kilman, details the struggle of countries, especially Africa, to feed their people.

Agriculture is the lifeblood of the world. As a matter of fact, is it the largest industry in the world. Yet many countries cannot compete with world prices in part due to subsidies in other countries such as America and the European Union as explained by the authors. These subsidies keep commodity prices artificially low, so low that most subsistence farmers in third world countries can’t compete. Traditionally, the answer to this problem has been food aid. Give the enormous surplus grown in places like America, to third world countries.

While food aid is a matter of life or death for millions of people each year, it does not lift the people out of poverty. It does not solve the problem of widespread starvation. The farmers of Africa must have a way to make a living – one that allows them to buy food. According to the authors, more “food” aid needs to be given in the form educating farmers on how to grow more crops with less. Helping them to build irrigation systems, giving them access to affordable hybrid seeds and fertilizers and allowing the commodity markets to work in a way that farmers from around the world can sell competitively sell their food.

The reason that more educational aid is not given, say the authors, is that food aid is a way for American or European farmers to sell their surplus crops. If other countries have enough food, and begin to compete in world markets, then farmers from first world countries will lose money.Read More

book reviews, corn, Ethanol, food and fuel