Corn Grower President Stresses Ethanol Issues

Cindy Zimmerman

Darrin IhnenEthanol issues were in the spotlight when National Corn Growers Association president Darrin Ihnen of South Dakota took the stage at the Commodity Classic general session on Friday.

Ihnen talked about the importance of using higher blends of ethanol in the fuel supply. “The EPA is studying the issue and everything they’ve indicated to this date looks very promising,” said Ihnen. “They said it will probably be late summer now and we are very hopeful it will come then.” He says that is a top priority for corn growers and “this is a game changer” that will give them an opportunity to use more corn.

Ihnen also talked about the climate change issue and other important issues during an interview with session moderator Mark Mayfield which is available in the player below.

Commodity Classic Photo Album

Audio, blends, Commodity Classic, corn, Ethanol, Ethanol News

Soybean President Wants Biodiesel Tax Credit Back

Cindy Zimmerman

Rob JoslinDuring the general session of the 2010 Commodity Classic, American Soybean Association president Rob Joslin, who stressed the importance of getting the biodiesel tax credit back in place.

“We need it now,” Joslin said. “It’s costing U.S. soybean farmers 25 cents for every bushel. On my 500 acres of soybeans, that’s over $6000 a year. Couple that with all the jobs loss, that’s our goal right now.”

Joslin says the tax credit is back in the second jobs bill that is being considered by the Senate right now. “I kinda feel like a bride that goes to the altar that comes away without a ring. We’ve been to the altar 2 or 3 times and we haven’t gotten a ring on our finger yet.”

Rob was interviewed by session moderator Mark Mayfield about this issue and others important to soybean producers – listen to that exchange below.

Commodity Classic Photo Album

Audio, Biodiesel, Commodity Classic

Industry Calls OPEC Report “Self Serving”

Joanna Schroeder

The Global Renewable Fuels Alliance (GRFA) has come out today calling a recent OPEC report “self serving.” The report, co-written by the former Secretary General of the OPEC oil cartel, criticized biofuels while according to GRFA, ignoring the overwhelming evidence on the devastating impact of crude oil on the environment and on our economies. The report will be released during the International Energy Forum’s meeting in Cancun, Mexico this month.

“This report would be laughable if the risks associated with our dangerous reliance on oil were not so serious,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance. “OPEC has dedicated its history to keeping oil prices artificially high and combating any threat to the shocking wealth of its members. It was only a matter of time until it attacked biofuels.”

GRFA notes that biofuels represent a competitive threat to crude oil but also acknowledge that the implementation of renewable fuels standards by governments around the world have the practical effect of lowering prices at the pump.  A trend, not surprisingly, that OPEC has no interest in seeing continue. For example, according to a report from Merrill Lynch commodity strategist, “retail gasoline prices would be $21/bbl higher, on average, without the incremental biofuel supply.”

Countries around the world are expanding their biofuels production to meet increased energy needs at the same time as addressing growing greenhouse gas emission concerns that lead to global climate change. In 2009, global biofuels production exceeded 80 billion litres.

According to Baker, the report ignores the horrific impact on economies due to high crude oil prices, especially those in developing nations as well as fails to address the positive impact biofuels production has on fuel supplies and prices. “In an era of ever increasing oil prices, biofuels production is more important than ever,” added Baker. “Our industry is calling on the OPEC oil cartel to embrace biofuels and the competition that it brings to the global fuels markets instead of stifling competition and keeping prices high.”

Baker concluded, “I can only conclude that this self-serving piece of research is an attempt to slow down biofuels production. Perhaps OPEC finally sees biofuels as competition. If that’s the case I suspect we can see similar future so-called reports on biofuels from OPEC.”

Biodiesel, biofuels, Ethanol, International

Vilsack Anticipates Approval of E15

Joanna Schroeder

“I’m not troubled by getting it right as long as we get it right. And I think we’re headed in the right direction. I’m anticipating we’ll see some increase in the blend rate,” said Secretary of Agriculture Tom Vilsack during a press conference at Commodity Classic when asked about EPA’s delaying the decision to increase the blend rate to E15.

However, prior to addressing the status of the E15 Waiver, Vilsack began by noting that biofuels are a good way to bring prosperity and economic vitality to all regions across the country. Rural America is disappearing and farmers have been one of the hardest hit groups during this financial crises. He explained that its not just growing the crops that help farmers but also the jobs it creates for residents of rural communities who work in the ethanol plants and other companies that are tied to biofuels production.

Circling back to E15, approving a higher blend is essential to reaching the country’s goal of producing 36 billion gallons of biofuels by 2022. Per the mandates as set by the EPA as part of the Renewable Fuels Standard, nearly 10 percent of all fuel will be blended with E10 in 2010. Without higher blends, including E85, there is no where for the fuel to go.

Yet earlier this week, the EPA announced that it was delaying any decision on increasing the blend level to E15 until the end of the summer. Vilsack commented that the purpose of the delay is due to ongoing testing by the Department of Energy to determine what engines can use the higher blend without ill effects. It has already been established that newer vehicles, and all flex-fuel vehicles can use the higher blend safely, “Which suggests to me that we’re going to see an increase in the blend rate,” said Vilsack. He then noted that it will be important to use rural development resources to make sure the distribution systems create the opportunities for people to use higher blends.

You can see photos from Commodity Classic here.

You can listen to Vilsack’s comments on biofuels here.

Agribusiness, Audio, biofuels, blends, Commodity Classic, Ethanol, Ethanol News

Expert: Algae Must Be Commercial Scale or Just Playing

John Davis

A man who is considered to be the father of genomics says that if algae-based fuel makers can’t start making billions of gallons of fuel, they are just playing with investors’ money.

This post on earth2tech.com says Craig Venter, the founder of synthetic biology startup Synthetic Genomics, made the remarks at the Wall Street Journal’s Economics conference this week:

In other words the algae companies need to be able to reach the scale at which the oil companies currently operate to be competitive. “That’s the real bugaboo for everybody,” said Venter. To address that hurdle, last July Synthetic Genomics announced that it was partnering with ExxonMobil on a $600 million algae biofuels program.

Synthetic Genomics is different than many of the algae fuel companies out there — Venter estimated there are 200 or so — because Synthetic Genomics is looking to use its synthetic genetic processes to tweak algae and other microorganisms to create synthetic super bugs that can crank out as much fuel as possible. Such genetically-altered bugs could consume CO2 and create synthetic hydro-carbons that could be a fuel replacement.

Venter said the synthetic genomic process could one day fundamentally change not just fuel and transportation, but food supply, medicine, and clean water. Venter and his crew at the J. Craig Venter Institute have already created a completely synthetic bacterial genome, which they claimed back in 2008 was the largest man-made DNA structure ever. Now Venter and the researchers are “extremely close” to activating the synthetic bacteria chromosome in a new cell which would make “the first synthetic species,” and will be their “proof of concept,” as Venter put it at the conference. That’s some crazy stuff.

The article goes on to say that some biofuel companies, such as Synthetic Genomics, are forming partnerships with some big oil companies to address the issue. In addition, Algae biofuel maker Sapphire Energy says it will be able to produce 1 million gallons of algae-based biodiesel and jet fuel per year by next year and a billion gallons per year by 2025.

algae, Biodiesel

Advanced Biofuel Makers Call for Tax Credits

John Davis

The advanced biofuels industry is putting a bug in Congress’ ear, calling for lawmakers to allow for an investment tax credit that will help advanced biofuels makers get money to get their projects up to commercial scale and become eligible for another operating credit.

Biomass Magazine explains that the industry would be eligible for a federal production tax credit of 30 percent, but the incentive is unused because there are no operating commercial-scale facilities:

Nearly 40 industry-relevant groups such as the Renewable Fuels Association, BlueFire Ethanol, Coskata, Enerkem, Verenium, Range Fuels and Iogen signed a letter to U.S. Sen. Max Baucus, (D-Mont.), Charles Grassley (R-Iowa), Rep. Dave Camp (R-Mich.)and Rep. Charles Rangel (D-N.Y.), which points out that there will be no commercial cellulosic biorefineries commissioned before 2011, at the earliest. The principle cause for commercialization delay is lack of funding, the letter states, due to the severe plummet of the U.S. economy.

According to U.S. Department of Energy numbers, it costs $250 million to get a 50 million-gallon-a-year advanced cellulosic biofuel operation up and running, and right now, that’s some tough scratch to come up with in this economy.

biofuels, Government, Legislation, RFA

Biodiesel Standards Under Revision

John Davis

One biodiesel standard is under review, while another one has been revised.

This post on Truckinginfo.com says ASTM International is considering a cold weather biodiesel standard:

Through the ballot, the group will decide if changes need to be made within the specification, D6751. If changes are needed, the group will determine whether they should apply to all biodiesel, or whether the changes should apply to a new separate grade of biodiesel. According to the NBB, the new grade would be intended for use in extremely cold weather.

The ASTM Filter Clogging Work Group and the ASTM Biodiesel Task Force will decide the exact form of the ballot and its limits. The results will likely be presented at the June ASTM meeting.

Meanwhile, The American Society of Agricultural and Biological Engineers (ASABE) has revised its biodiesel fuel testing standard. This ASABE press release posted on ThomasNet News says ASAE EP552.1, Reporting of Fuel Properties when Testing Diesel Engines with Alternative Fuels Derived from Plant Oils and Animal Fats, will cover the reporting of testing of any alternative fuels derived from plant oils and their blends with petroleum diesel:

The original document was developed in the 1990s. Since that time, with the rapid growth of the biodiesel industry, the procedures and practices in reporting the testing of such alternative fuels have evolved considerably. The revised document reflects current practices and international standards, with input obtained from experts in industry, academia, and public service.

You can read more about the ASABE standards here.

Biodiesel

Iowa Biodiesel Mandate Still Alive

John Davis

As if to borrow a line from Monty Python, the Iowa biodiesel mandate is “not dead yet!”

The 5 percent biodiesel blend for every gallon of diesel sold in the state, although declared dead by many in the media (including yours truly), seems to be marching on. The Omaha World-Herald reports that the B5 legislation cleared the state Senate last year and still has a shot at clearing the House this year:

The fight seems destined to continue, according to Craig Cronbaugh, director of information for the Iowa Legislative Services Bureau, even though a lot of other proposals will be set aside Friday by the legislative “funnel.” Any bill not out of committee by Friday will no longer be considered, Cronbaugh said.

“But the B-5 bill is strangely alive,” he said, because it is still active in the House Ways and Means Committee.

“Ways and Means is exempt from the funnel,” Cronbaugh said. “So if it passes that committee, it could still make the full House floor” for a vote before the Legislature adjourns.

As you might remember from my post earlier this week, I had pointed out that while the bill died in the House Environmental Protection Committee, it still has a shot in the House Ways and Means Committee.

Biodiesel, Legislation

World’s Largest Soybean Plant to Use Verenium Process

John Davis

The world’s largest soybean processing plant will be using a a process from Verenium that will increase soybean oil production.

This company press release says Verenium’s Purifine(R) PLC enzymatic degumming process will be used at the Molinos Rio de la Plata’s San Lorenzo plant in Argentina … Argentina’s leading soybean and sunflower seed processor:

“Molinos’ ability to adopt new innovative technologies is what makes them a global leader in the edible oil market,” said Janet Roemer, Verenium’s Executive Vice President, Specialty Enzymes Business. “Verenium is pleased to be able to work with Molinos to further enhance their operating efficiency through the use of Purifine PLC, which allows for the simultaneous increasing of oil yields and improving the efficacy of meal production without requiring major changes to the existing plant layout.”

“Through Purifine PLC’s innovative enzymatic degumming process, we have seen a significant increase in oil yields and processing margins enabling our facility to more fully reach its potential,” said Luis Palacios, Molinos’ Industrial Manager. “The ability to squeeze extra yield from the same plant without increased chemical usage is critical to our philosophy of minimizing the overall environmental impact of our processes.”

The Molinos San Lorenzo facility is known for its state of the art technologies that maximize oil and meal yields from soybeans.

Soybeans

CARB Approves Roush Propane-Powered Ford Pickup

Joanna Schroeder

Although the California Air Resources Board (CARB), appears to be anti-corn-based ethanol (the EPA has just determined that corn ethanol has a greenhouse emission reduction value of 21 percent as compared to conventional gasoline) they have just given support to another alternative fuel – propane. ROUSH has just announced that CARB has granted certification approval for their propane-powered Ford F-250 and F-350 pickups. Now that the fuel meets the strict emission standards of the sate of California, the vehicle will be able to be sold and operated in all 50 states.

Todd Mouw, director of sales & marketing for ROUSH Propane Vehicles noted, “We have made a significant investment in our liquid-propane injection technology, and we look forward to helping fleet operators across the country reduce their carbon footprint and operating costs with our propane-powered vehicles. We have more than two hundred 2010 Ford F-250s and F-350s in our inventory, so we have plenty of trucks available to meet customer demand.”

With CARB’s approval, ROUSH is now allowed to sell their 2010 Ford F-250 and F-350 models with the 5.4L V8 engine. The company is also working towards receving the same certification for the upcoming 2011 propane-powered Ford E-150, E-250, E-350 passenger and cargo vans that will launch in the 2nd quarter of this year. In addition, ROUSH has plans to convert the Ford E-450 cutaway with the 6.8L V10 engine as well.

Company Announcement, Propane