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Ethanol Report on Scaling the Blend Wall

Cindy Zimmerman

In this edition of “The Ethanol Report,” Renewable Fuels Association (RFA) Director of Market Development Robert White talks about what RFA is doing to help ethanol scale the rapidly approaching blend wall. He discusses the BYO Ethanol program to get blender pumps installed, encouraging EPA to grant a waiver to allow up to 15 percent ethanol in regular gasoline, and reaching out to consumers to increase consumption of ethanol blends. Robert also talks about how RFA is up for a couple of national awards this week from the National Agri-Marketing Association (NAMA) for their 2009 marketing campaigns.

Ethanol Report PodcastRFA won regional NAMA awards for their Sturgis Motorcycle Rally t-shirt design, the Flex-Fuel Challenge website, and the BYO Ethanol campaign ad. They will find out Wednesday at the Best of NAMA awards in Kansas City if any of them received national recognition.

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Audio, Ethanol, Ethanol News, Ethanol Report, RFA

USDA Invites Public Comment on Renewable Energy Programs

Cindy Zimmerman

Agriculture Secretary Tom Vilsack is inviting public comment on several proposed rules designed to increase the production of advanced biofuels and the development of biorefineries that were authorized under the 2008 Farm Bill.

“We view these proposed rules as part of the strategy to help meet President Obama’s goal to accelerate the commercial production of advanced biofuels and create a viable alternative fuels industry,” Vilsack said.

The proposed rules affect three renewable energy programs administered by USDA Rural Development – the Biorefinery Assistance Program, Repowering Assistance Payments, and Bioenergy Program for Advanced Biofuels. The programs are designed to establish guaranteed loan regulations to develop and construct commercial-scale biorefineries and to retrofit existing facilities using an eligible technology to develop advanced biofuels; make payments to eligible biorefineries to install new systems that encourage renewable biomass energy use and replace fossil fuels; and establish a payment program for eligible producers of advanced biofuels.

Additional information on the proposed rules and instructions on how the public can offer comments are available in the April 16, 2010 Federal Register.

biofuels, USDA

AWEA Wants Grid More Compatible for Wind Energy

John Davis

An advocate for wind energy in the country is calling for a better electrical grid to handle wind energy needs.

The American Wind Energy Association has called for Federal Energy Regulatory Commission (FERC) to update the way the nation’s electric utility system is operated to make it more efficient and better able to accommodate wind and solar power:

“While utility system operators have done an outstanding job of managing the system to ensure reliable electricity supply, many of the rules and procedures they are using were developed a generation or more ago, when our energy mix and the structure of the electric industry were very different and computing and communication technology was far less advanced,” explained Rob Gramlich, AWEA Senior VP for Public Policy.

“Our filing suggests a number of steps FERC should take to update grid operating procedures, just as they were updated in the past to accommodate new resources, such as nuclear power a generation ago.

“These reforms will make the power system operate more efficiently, even in areas where there is not a large amount of wind energy. Consumers’ electric bills will be lowered and they will get more reliable power. Being able to better integrate large amounts of wind and other renewable sources of energy onto the grid is an added bonus.”

The AWEA says many of the ideas for reforms have already been adopted in Europe and could be implemented here.

Wind

House Leader: Biodiesel Incentive Back by Summer

John Davis

A key Democrat in the U.S. House of Representatives has set a goal of Congress renewing the $1-a-gallon federal biodiesel tax incentive and sending the measure to Pres. Obama by the end of May.

The Des Moines (IA) Register reports that House Ways and Means Committee Chairman Michigan Democrat Sander Levin made the prediction:

The House and Senate have been at odds over how to pay for the various tax credit extensions that the legislation contains. Levin said the main obstacle is the need to get a filibuster-proof 60-vote margin in the Senate.

The biodiesel industry, which was already struggling, has slowed to a crawl without the subsidy. The chairman and CEO of a leading biodiesel producer, Ames-based Renewable Energy Group LLC, met privately with Levin and Iowa’s three Democratic U.S. House members, during a break in a Ways and Means hearing. Jeff Stroburg said that while he’s confident House leaders want to get the bill done by Memorial Day he’s not sure the Senate would agree to a deal by then.

“I’m really concerned. There’s a lot of politics involved,” he said.

Industry officials believe biodiesel refineries will be able to ramp up again once they get the subsidy back because there are also mandates out there that will prompt more biodiesel use.

Biodiesel, Legislation

REG Buys Nova Biosource’s Biodiesel Assets

John Davis

Iowa-based biodiesel maker Renewable Energy Group has bought up the biodiesel assets of Nova Biosource Fuels of Seneca, Illinois.

This Security and Exchange Commission filing says REG will also assume Nova’s debts of about $36.25 million.

Pursuant to the Seneca Asset Purchase Agreement, the Seneca Purchaser agreed to acquire substantially all of the Seneca Sellers’ assets, excluding certain specified assets, used in manufacturing ASTM D6751 quality biodiesel and related co-products out of its production facilities in Seneca, Illinois, including all patents and intellectual property rights to Nova’s process technology, and to assume bank term debt of approximately $36,250,000.

It was about a year ago that Nova filed for Chapter 11 bankruptcy in an attempt to reorganize and stay afloat.

Biodiesel

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