Profitability Returning to Ethanol Industry

Cindy Zimmerman

The sun appears to be rising again for the ethanol industry.

ethanol plant“Profitability has returned,” says Joe Victor, who is Vice President of commodity research advisory firm Allendale, Inc. “We know that over the past three months that there is profit returning, above and beyond all costs. Ethanol companies are turning a profit over the past three months.”

The main reason is lower corn prices compared to last year and prospects for a bumper corn crop this year. The Wall Street Journal is calling it “Christmas in October for Ethanol Producers.” Last week, ethanol processing margins nearly doubled to a dollar a bushel. Since early July, ethanol futures on the Chicago Board of Trade have increased more than 20%, while corn futures have only gone up about five percent.

A great sign of profitability is idle plants going back into production. According to Ethanol Producer Magazine, the number of plants idled has decreased from 36 in the spring to 24 this fall. The publication’s latest plant map shows total U.S. ethanol production capacity is nearly 12 billion gallons.

Ethanol, Ethanol News

Growth Energy Urges California to Do Low Carbon Right

Cindy Zimmerman

Growth Energy filed new scientific data last week challenging California’s proposal to use international indirect land use change assessments as part of the state’s Low Carbon Fuel Standard (LCFS). In April, the California Air Resources Board (CARB) initially approved the LCFS regulation which included provisions that could ultimately eliminate corn ethanol from the California market.

Growth Energy“Growth Energy supports a Low Carbon Fuel Standard as long as it is done right, and the Low Carbon Fuel Standard proposed by the California Air Resources Board is not done right,” said Growth Energy CEO Tom Buis. “It relies on a flawed, unproven and unscientific concept that would punish biofuels, despite the opportunity biofuels like ethanol provide as cleaner, greener fuels that are an alternative to dirty foreign oil.”

Growth Energy filed copies of new scientific reports disproving CARB’s position on ILUC in its comments to the proposed regulation, including research from Monsanto showing that advanced seeds will boost corn yields as high as 300 bushels per acre by 2030 and new evidence from research at the Oak Ridge National Laboratory in Tennessee which directly contradicts the disputed models and assumptions on which CARB has relied.

Ethanol, Growth Energy, Indirect Land Use

USDA Loan to Help Green Rebuilding Greensburg, KS

John Davis

greensburgGreensburg, Kansas, literally destroyed by a tornado in May, 2007, is getting some help from the government to have a green energy source supply the power for the town as it continues to rebuild.

The USDA has announced a $17.4 million loan to Greensburg Wind Farm, LLC, to provide financing for the 10 wind turbine project that will supply power to the community:

The total project cost is estimated at $23.3 million. Approximately, $17.4 million will come in the form of a loan to Greensburg Wind Farm, LLC, a subsidiary of John Deere Renewables, with the remaining $5.8 million, or 25 percent of the total project cost, being provided through an equity investment by Deere & Company. The loan will support the 10 wind turbine project that will generate 12.5 MWs of electricity that will serve the electric needs of the City of Greensburg and other rural communities through the Kansas Power Pool.

“I am proud of the long standing commitment by USDA Rural Development’s Rural Utilities Service toward working with community-based electric cooperatives to find new and more energy independent ways to power rural America,” said Rural Development Under Secretary Dallas Tonsager.

The USDA claims it has provided the town with about $20 million in financing to help with the community rebuilding efforts.

USDA, Wind

Algae to be Focus of BIO’s Pacific Rim Summit

John Davis

BIOLeading researchers and companies looking to turn algae into biofuels will meet in Hawaii next month to talk about progress and challenges with the green-slime-into-green-fuel process.

The Biotechnology Industry Organization’s (BIO) 2009 Pacific Rim Summit on Industrial Biotechnology and Bioenergy will be held Nov. 8-11, 2009 in Honolulu:

Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section, said, “Algae is seen as a promising source of raw material for biofuels, but it also could become a workhorse for producing ethanol, chemical, protein and food ingredients. As companies work to achieve the full potential of algae for fuels and chemicals, they’ll face the same challenges and opportunities as other biotechnology companies. The Pacific Rim Summit provides an opportunity for startup companies to present the state of their research and development, share their experiences and network with one another and with other biotechnology companies.”

The summit is expected to bring together government officials, private companies and members of academia, including presentation from Valerie Reed with the US Department of Energy, Jonathan Wolfson of Solazyme, Bertrand Vick from Aurora Biofuels, David Bayless of Ohio University, and Jeff Muhs, Utah State University.

algae, BIO, biofuels

CornPlus Ethanol Recognized for Energy Efficiency

Cindy Zimmerman

Corn Plus Ethanol of Winnebago, Minnesota has been honored for energy efficiency and their commitment to being “green.”

corn plusCorn Plus was one of five Minnesota businesses recognized by Alliant Energy with an “Excellence in Energy Efficiency Award” for leadership and vision in integrating energy efficiency into the design, construction or operation of their businesses. The awards were presented at the recent 2009 Minnesota Energy Summit in Albert Lea, MN.

Selection of the winners was based on a variety of criteria such as energy savings, programs implemented, the number and kinds of projects completed, technology applied or a unique application of energy-efficiency technologies. The award-winning organizations utilized Alliant Energy’s Shared Savings program.

Corn Plus implemented three major projects under that program – a fluid bed reactor, variable frequency drives instead of standard motors and a distillation upgrade – that have save the ethanol plant in terms of both energy and economy.

Energy, Ethanol, Ethanol News

Grains Council Demos Ethanol Co-Product Use in Egypt

Cindy Zimmerman

The U.S. Grains Council is setting up demonstration trials in targeted countries to educate livestock producers about the nutritional and economic benefits of using ethanol co-products like corn gluten feed (CGF) and distillers dried grains with solubles (DDGS)

USGC“Conducting the trials locally gives local farmers a chance to see DDGS and CGF use firsthand in a trial that utilizes their own climatic conditions. It provides them a reliable source of data they can be more confident in,” said Lori Feltis, USGC Rest of the World Advisory Team member, who is currently in Egypt to assess the use of U.S. DDGS and CGF.

In April, the Council initiated a demo-trial in Egypt where local animal production operations formulated DDGS and CGF inclusion ratios in their feed rations. This week, USGC consultants, staff and Feltis traveled to Egypt to analyze the ongoing progress of the trials.

Distillers Grains, Ethanol, Ethanol News, International

Brazil Could Import US Ethanol

Cindy Zimmerman

With persistent rain affecting ethanol and sugar production in Brazil this season, prospects are that U.S. ethanol may be exported to that country to meet the demand.

brazilAccording to the Brazilian Sugarcane Industry Association UNICA, ethanol production this year is down more than three percent so far while demand continues to grow. “While production has been negatively affected by weather conditions, reducing the availability of products offered in the market, demand has been growing steadily,” UNICA reports. “Ethanol (anhydrous and hydrated) sales to the domestic market in the month of September reached 2.05 billion liters, 14.9% more than in the same month last year.”

As for the export market, total shipments from April to September reached 2.1 billion liters, down 12.52% from the 2.41 billion liters recorded in the same period last year. The most significant reduction in exports involves anhydrous ethanol – the type that is blended with gasoline – with total shipments down 58.03% for the year, although there was a 42.46% increase in hydrated ethanol exports over the same period.

Reuters this week reported on the buzz about ethanol exports to Brazil, with the weak dollar making prices more competitive. All gasoline sold in Brazil contains 25 percent ethanol. Last year Brazil exported 1.365 billion gallons of ethanol, with 740 million of that coming to the U.S.

Ethanol, Ethanol News, International

Renewable Energy Grants Available in Colorado

Joanna Schroeder

The Colorado Department of Agriculture is now offering several Advancing Colorado’s Renewable Energy (ACRE) grants. Eligible projects include agricultural related renewable energy systems, feasibility studies and research projects. The ACRE program is a set of grants that provide funds to conduct feasibility studies, install renewable energy systems or do research into renewable energy projects.

microhydroGrant applications submitted must be for projects that will be completed withing two years of grant award. Examples of past projects that have been supported by the ACRE grant program include wind turbines, solar panels, micro-hydro systems, biomass systems, and biodiesel plants. Funds will be distributed in three categories.

1) Feasibility Studies —  must study the feasibility of an agricultural energy-related project. Feasibility studies may address the market for the product, engineering requirements, economic viability, environmental concerns, legal requirements, management, and other necessary study components. A maximum allocation for each study is $25,000.

2) Project Participation — for projects will completed feasibility studies, awards will be granted to assist with the project.. A maximum allocation of $100,000 has been established per project.

3) Research — applications for research of agricultural energy-related topics will be considered in an effort to bring new information to the marketplace. Research should be tied to a particular issue or problem in Colorado. A maximum allocation of $50,000 per project has been set.

Grant applications are being accepted through October 30th. Contact ROI for more information at 517-812-3285.

Biodiesel, biomass, Energy, News, Research, Solar, Wind

“FUEL” Arrives in Chicago

Joanna Schroeder

3941955137_4a334f0e33The “FUEL“ caravan, which includes the Big Green Energy Bus and the Algaeus, is arriving in Chicago tomorrow for the launch of the award winning film. The October 10th event, taking place at Loews Pipers Alley 4 beginning at 4:00 pm, will be kicked off with a motorcycle ride-in. Director Josh Tickell and Producer Rebecca Harrell will ride a Harley Davidson with a diesel engine that tops 100 mph and boasts nearly 80 miles per gallon at legal highway speeds. Movie patrons will also be able to check out the Zero S, the first fully electric high-performance motorcycle.

The Veggie Van Organization has been touring the country in support of the documentary, “FUEL“. The film opened in theaters nationwide on September 18th in New York. As part of the showing, Tickell and Harrell will be available for a question and answer session on Saturday. Click here for more information about the film and ticket information.

Biodiesel, Education, Electric Vehicles

Cold Vermont Warms Up to Biodiesel Heating Oil

John Davis

VFDAIt won’t be long before the snow starts to seriously fly in Vermont (if it isn’t already!), and the heating oil dealers in that state are encouraging those Green Mountain Boys… and Girls… to use a biodiesel blend to heat their homes when they come in from shoveling.

This article in the Barre Montpelier Times Argus says Matt Cota of the Vermont Fuel Dealers Association is touting the benefits of biodiesel blended with heating… a combination known as bio heat that is better for the environment and oil burners in homes:

Cota said about 20 heating oil dealers in the state sell the bio heat blend, which can safely be burned in existing heating systems.

Heating oil groups from around the Northeast met in Baltimore last month and endorsed the adoption of a mandatory minimum 2 percent blend of the cleaner burning heating oil by July.

“It’s a very progressive and proactive step by the industry, from South Carolina to Maine, to endorse, support and encourage federal and state bodies to enact essentially a provision which everyone is selling the same high quality, environmentally friendly product,” said Cota, executive director of the Vermont Fuel Dealers Association.

There are seven states with biodiesel mandates, and Massachusetts requires all home heating oil sold in the state to be a biodiesel blend.

Biodiesel