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Valero to Purchase 3 Ethanol Plants

valeroValero Energy Corp will add three more ethanol plants to their group, bringing their total production to 1.1 billion gallons per year. After these purchases, Valero will own ten ethanol plants.

A $200 million agreement has been settled for two plants now owned by creditors ASA Ethanol Holdings LLC. These plants are located in Linden, Indiana and Bloomingburg, Ohio and were originally owned by VeraSun Energy Corp who are now bankrupt. The third plant is in Jefferson, Wisconsin and will be purchased for $72 million by Renew Energy who also went bankrupt.

“The Linden and Bloomingburg plants have the same high-quality design that we got with our earlier purchase of seven ethanol plants, and they’re also relatively new assets,” said Valero Chairman and Chief Executive Officer Bill Klesse. “The purchase of the plant from Renew gives us additional production capacity. The ethanol plants we bought earlier this year have been very successful for Valero, and we expect these newly purchased plants to build on that success.”

Valero should close on these ethanol plants in early 2010.

Ethanol, Ethanol News, News

MO Adds First Ethanol Blender Pump

fastlaneMoscow Mills, Missouri is the site of the state’s first ethanol blender pump. Warrenton Oil Company recently unveiled four new pumps at its FastLane station at 240 College Campus Drive. The blender pumps offer E20, E30 and E85 along with gasoline.

“By partnering with Missouri Corn and the Missouri Department of Agriculture, we are offering our consumers more choices at the pump,” said Dave Baker, Warrenton Oil Company vice president of sales. “We look forward to growing this new market that supports a homegrown fuel and Missouri jobs.”

MCGAAccording to the Missouri Corn Growers Association, these blender pumps are part of a pilot program with the Missouri Department of Agriculture Division of Weights and Measures. “This is a great opportunity to utilize a product grown and refined in Missouri,” said Gary Clark, Missouri Corn Merchandising Council senior director of market development. “We are looking forward to the continued expansion of blender pump locations across the state. This will allow Missourians to experience the benefits of mid-level ethanol blends and support a product that is helping reduce our dependence on foreign oil.”

There are currently 114 E85 locations, including this blender pump station, in the state of Missouri.

blends, Ethanol, Ethanol News, News

Wind Works Acquires Interest in 80 MW of Wind Power

John Davis

WindWorks2Canadian-based Wind Works Power Corp. has acquired half interest in six wind energy projects in Ontario with a total capacity of 80 megawatts. This company press release says Wind Works Power will have the option to up those interests to 100 percent:

“With these 6 new projects, we now have a total of 15 wind energy projects in Ontario totaling 190 MW” commented Dr. Ingo Stuckmann, CEO and director of Wind Works. “All 15 projects submitted power contract applications to the OPA, which offers the highest power rate in North America. Power contracts in Ontario will be awarded in the January to March 2010 time frame, and we are now targeting to commence construction on a minimum of 70MW in Ontario in 2011.”

In consideration for the 50% interest in the 6 wind projects, Wind Works will make a one-time cash payment of $300,000 on April 30, 2010, and issue 1,200,000 restricted common shares.

The projects submitted power contract applications under the new Feed-in Tariff program as part of the Ontario Power Authority initial launch period. The Feed-in Tariff (FIT) contract program offers a power contract with a guaranteed rate of C$135.00/MWh over a 20-year term to qualified wind energy projects.

Wind

New Holland Biodiesel Machine Wins Tractor of the Year

John Davis

NewHollandIf you’ve been a reader of Domestic Fuel for any amount of time, you know how big of a supporter of biodiesel our friends at New Holland have been.

Their efforts and qualities are being noticed around the world as New Holland’s T7070 Auto Command tractor has been tapped as Tractor of the Year at Agritechnica, the world’s largest show for agricultural machinery and equipment. This article from FarmandDairy.com says the tractor also picked up the “Golden Tractor for Design” award, recognizing design excellence focusing on ease of use and operator comfort:

This pair of awards for the T7070 Auto Command adds to the Tractor of the Year and the “Golden Tractor for Design” for 2008 obtained by the T7060 Power Command at the 2007 Agritechnica, making the T7000 Series the most awarded line of tractors in the 13-year history of this award.

Awarded by a jury of 20 journalists from the most important agricultural publications in Europe, the Tractor of the Year award crowns the open field model that is able to combine all the benefits of innovation, productivity, comfort, economy and ease of use, all of which are necessary for a leading tractor in modern farming.

Built in New Holland’s Basildon, U.K.facility, the five models from the T7000 Auto Command Series are powered by a new NEF engine, with between 167 and 225 hp that can run on 100 percent biodiesel, and completely developed by Fiat Powertrain Technologies of Turin, Italy.

Agritechnica, held last month in Germany, attracted more than 350,000 people.

Biodiesel, New Holland

Propane-Fueled Vans Added to the ROUSH Lineup

Joanna Schroeder

ROUSHPropaneVanDFROUSH is expanding its line of propane fueled vehicles with the addition of a line of E-Series vans. ROUSH will offer fuel conversion solutions for both passenger and cargo van applications. The company selected the E-Series because, “Ford has long held a leadership role in the van segment for more than 30 years and fleet managers are familiar with the ordering process, cost of ownership, and maintenance schedules.” To date, ROUSH offers propane fueled trucks, including F-150, F-250 and the F350. Production on these vehicles is expected to begin in first quarter 2010.

“The response from the fleets to our line of F-150, F-250 and F-350 propane pickups and conversion kits has been outstanding, and their feedback inspired us to develop the complete line of E-Series vans,” said Jack Roush. “Many of the fleet managers we have spoken with utilize a tremendous number of vans in the course of their daily business and were looking for the type of cost and environmental advantages that propane offers as a motor fuel. Their desire is what motivated ROUSH to continue to add to our line of propane vehicles.”

According to the company, the ROUSH propane-fueled E-Series vans will achieve Super Ultra Low Emission Vehicle (SULEV) II emission standards, and on average, a SULEV vehicle is 90 percent cleaner in emissions than the average new model year car or truck. The ROUSH conversion system works on the Ford 5.4L, V-8 engine found in 2009 and newer vans, including the gaseous prep engine offered by the Ford. In addition to emission benefits, various studies demonstrate operational savings for fleets when they convert to propane.

ROUSH is also working on developing a propane kit for the Ford 6.8L, V-10 engine used on the E-450 Cutaway vehicle. This is scheduled to be available in late 2010.

News, Propane

RFA Seeks Fairer Test of Ethanol by UL

Cindy Zimmerman

Renewable Fuels Association LogoThe Renewable Fuels Association (RFA) is concerned about testing of the nation’s gasoline pumps currently underway by Underwriters Laboratory (UL) that is using what the group calls “aggressive ethanol” intended to accelerate any potential issues that may arise with the use of higher ethanol blends.

blender pumpAccording to RFA, this “aggressive ethanol” misrepresents the fuel ethanol found in the market today. Many of compounds found in this grade of ethanol, such as gum, sulfates, and pHe, were well outside the range specified by ASTM, the international standards organization for fuels.

RFA Technical Director Kristy Moore has written to UL outlining the association’s concern with this process. “Ultimately, it is clear the ‘aggressive ethanol’ formula required by UL grossly misrepresents modern fuel ethanol and is far worse than even the lowest quality ethanol in commerce today,” she wrote. “It is safe to say ‘aggressive ethanol’ is not representative of any fuel ethanol that is found in the marketplace today. Automobile manufacturers themselves have confirmed that they no longer use ‘aggressive ethanol’ in testing. Rather, they prefer to use ethanol that is representative of the fuel in the marketplace.”

The RFA is urging UL to move forward with its testing using an ethanol formulation that more closely mimics those allowed in the marketplace.

blends, Ethanol, Ethanol News, RFA

U.S. Energy Company to Buy Jatropha-based Biodiesel

John Davis

ValeroAn American energy company with biodiesel and ethanol operations will be buyng some of its green fuel from down under.

The New York Times reports that Valero Energy has signed a five-year deal with Australian biofuel refiner Mission NewEnergy to obtain biodiesel made from jatropha. Valero will also be able to buy a 25 percent stake in Mission:

Mission will supply Valero with up to 60 million gallons of biodiesel per year, starting next year. Under the terms of the agreement, Valero can double that amount and extend the contract by an additional five years. The value of the contract could be as high as $3.5 billion, Mission said in a statement.

Jatropha is a family of oil seed plants that can grow on marginal soil without displacing land used for food supply.

Already the nation’s biggest petroleum refiner, Valero has been steadily increasing its presence in the biofuels market. Earlier this year, Valero obtained seven ethanol refineries from financially strapped VeraSun, and Valero got into the biodiesel business this fall when it started a venture in Louisiana with Darling International Inc. to develop an animal fat biodiesel plant.

Biodiesel, Ethanol, Ethanol News, News

Algae Biodiesel Maker Teams with Japanese

John Davis

OriginOilCalifornia-based algae biodiesel producer OriginOil Inc. has signed a memorandum of understanding with Japan’s Research Institute of Tsukuba Bio-Tech (RITB) to develop algae-to-jet fuel technologies.

RITB2This article from Biomass Magazine says the deal comes on the heels of RITB getting money from the Japan Science and Technology Agency to develop algae-to-jet fuel applications:

Headed by Tsukuba University professor emeritus and algae researcher Takaaki Maekawa, RITB recently signed a memorandum of understanding with OriginOil to develop and distribute systems in Japan for aircraft fuel production, algae-to-oil production and other industry applications. RITB was recently approved for two years of research and development funding based on its proposal to the Japan Science and Technology agency. Maekawa’s presentation, available on the RITB Web site, pointed to the volume of carbon emissions from Japans major industrial emitters as well the stability of jet oil prices and future demand potential.

“Our funders have set a priority on sustainable aircraft fuels,” Maekawa said. “Together with OriginOil we will target these fuels. We look to OriginOil for the needed technology and resources to help carry out this vast assignment.”

“We salute Japan Science & Technology Agency for its initiative in algae-based jet fuel,” said Riggs Eckelberry, OriginOil CEO. “We are privileged to have been asked by RITB to support Professor Maekawa’s high-priority efforts over the next two years. We look forward to helping make his program a major success.”

Earlier this year, Japan Airlines tested a mix of camelina, algae and jatropha biofuel blended with jet fuel and found it had better fuel efficiency than traditional kerosene used in airliners.

Biodiesel, International

Biodiesel Gets British Columbia to Cut Carbon Tax

John Davis

bc_flagA controversial tax imposed on some Canadians will be reduced at the beginning of the new year, thanks to biodiesel.

Today’s Trucking.com reports that British Columbia’s carbon tax will drop by 5 percent and planned increases will also be lessened because of renewable fuels:

On Jan. 1, 2010 the carbon tax rate on diesel drops from 4.04 cents per litre to 3.84 cents per litre and on gasoline from 3.51 cents per litre to 3.33 cents per litre.

On July 1, 2010 the carbon tax rate will increase to 5.11 cents per litre (adjusted from 5.38 cents per litre) for diesel and 4.45 cents per litre (from 4.68 cents per litre) for gasoline.

The government determined the annual rate increase when the carbon tax first became effective and it will continue until July 2012. Yearly increases for diesel, adjusted for the renewable fuels, will be: July 1, 2011 –¬ 6.39 cents per litre, instead of 6.73 cents per litre; and July 1, 2012 –¬ 7.67 cents per litre, instead of 8.07 cents per litre.

The tax was expected to cost the trucking industry $20 million. Maybe if we can get a bit more of cleaner burning biodiesel into the mix, they’ll save even more.

Biodiesel, Government

Northern Most Ethanol Blender Pump Station Opens

blender_pumpThe northern most E85 fueling station is now open! The Farmers Union Oil ethanol blender pump at 418 State Avenue SW in Warroad, Minnosota celebrated their opening this week.

The “Christmas Tree discounts” at the station began Wednesday. Motorists who bought eight gallons or more of the ethanol blended fuels received discounts off the price of the live Christmas trees sold at the station: E85 = $8.50 discount; E50 = $5 discount; E30 = $3 discount; E20 = $2 discount; and E10 = $1 discount.

Minnesota now has over 60 blender pumps within the state and about 350 E85 stations. The state touts the most E85 fueling locations of any state throughout the country.

blends, E85, Ethanol, Ethanol News, News