Growth Energy Launches Driving Ethanol Website

Cindy Zimmerman

Growth Energy has launched a new, re-designed version of the former Ethanol Promotion and Information Council website, DrivingEthanol.org.

“DrivingEthanol.org is a one-stop shop to learn more about the remarkable benefits of high-tech, homegrown ethanol,” said Tom Buis, Growth Energy CEO. “We hope consumers and retailers alike will visit DrivingEthanol.org to learn more about the promise of ethanol.”

Driving EthanolThe online resource is designed to help consumers learn more about the benefits of ethanol for America’s environment, economy and national security and includes answers to many frequently asked questions about the ethanol industry.

DrivingEthanol.org also contains retail information such as E85 and blender pump locations, uses of ethanol and a listing of the Flex-Fuel Vehicle models on the market today. The site offers resources for prospective ethanol retailers including information on tax incentives, pump installation and conversion, as well as ethanol purchase.

The website domain was originally launched about four years ago by EPIC, prior to that ethanol organization becoming part of Growth Energy last year.

Ethanol, Flex Fuel Vehicles, Growth Energy

Corn Growers Spotlight Indirect Land Use Issues

Cindy Zimmerman

Corn growers want regulators to know that trying to measure unintended consequences of biofuels production could result in more unintended consequences.

NCGA Land UseThe National Corn Growers Association held a conference this week in St. Louis to focus on the issue of land use and carbon impacts of corn ethanol and how the future can be predicted with models to determine lifecycle greenhouse gas emissions. The problem, according to NCGA CEO Rick Tolman, is the language that was put in the 2007 energy bill’s Renewable Fuels Standard. “We had some arcane language put in there that said we’ll take a look at indirect land change and its implications as an unintended consequence,” Tolman said. “What we think is there’s an unintended consequence of the unintended consequence, which may be that we may in fact start using more imported oil because of this language we have regulation that exceeds our ability to measure.”

Tolman says California’s low carbon fuel standard is an example of how using unproven models that fail to use updated information or accurate future predictions of new technology and higher yields is going to have the opposite effect of what was intended – that is, using less imported fossil fuels. “After 2010, you won’t be able to sell ethanol in California,” said Tolman. “And it is really the only viable low carbon fuel that’s available in California, so that means more oil.”

The corn growers are hoping regulators will take a closer look at what they are trying to do and consider the impact that it will have down the road.

Listen to or download an interview with Rick Tolman here:

Audio, corn, Ethanol, Ethanol News, Indirect Land Use, NCGA

Algae-to-Energy Researchers Talk Future in St. Louis

John Davis

Safer-LogoSt. Louis was the destination this week as more than 100 researchers and industry leaders from 10 states came together for the “Algae-to-Energy in the South” regional summit aimed at looking at algae’s potential as a renewable energy resource, particularly making it into biodiesel.

This National Biodiesel Board press release says Dr. Richard Sayre, the Director of the Enterprise Rent-A-Car Institute for Renewable Fuels at the Donald Danforth Plant Science Center, called biodiesel a sustainable component of our fuel supply:

“Biodiesel is going to be very important for transportation,” he said. “Trains and trucks use biodiesel of course. Oil based systems and biodiesel is really going to be the future.”

ceelogo.gifThe National Biodiesel Board has been proactive to support research and development to learn more about algae’s potential as well as honing algae extraction techniques. NBB’s feedstock program, with funding from the U.S. Department of Transportation, is working with Dr. Sayre to further develop a non-destructive oil extraction process, sometimes referred to as “milking the algae,” that is capable of continuously removing oil from living algal cultures. The program is considering what strains perform best and how the process may benefit production efficiency by removal of contaminants.

SouthernGrowthDr. Sayre explained that oil based fuels, such as biodiesel, have many benefits. They boast twice the energy density of alcohol; oil producing plants have reduced impact on the environment; and algae based biodiesel can be produced on land not suitable for other uses and result in higher oil per acre than currently available.

The summit was hosted by the Center for Evergreen Energy, the St. Louis Regional Chamber and Growth Association and the Southern Growth Polices Board.

algae, Biodiesel, NBB

USDA Hands Out $4.2 Mil for Woody Biomass Projects

John Davis

usda-logo2Federal officials have handed out $4.2 million in grants for projects that will reduce the fuel for forest fires, while creating a green fuel source.

Ag Secretary Tom Vilsack says the grants to 17 small businesses and community groups will encourage development of woody biomass into fuel:

“By harnessing the full potential of woody biomass, America’s forests can produce renewable energy and new products and we can create new, green job opportunities for local workers,” Vilsack said. “These grants will help restore our forests by reducing hazardous fuels, handling insect and disease conditions, and treating forests impacted by catastrophic weather while creating markets for small-diameter material and low-valued trees removed from these areas.”

These funds are targeted to help communities, entrepreneurs, and others turn residues into marketable forest products and green energy. The Forest Service Woody Biomass Utilization grant program has been in effect since 2005 and has provided over $26.3 million towards various projects, ranging from biomass boilers for schools and prisons, to helping businesses acquire equipment that improves processing efficiencies. During this time period, 110 grants have been awarded to small businesses, non-profits, tribes and local state agencies to improve forest health, while creating jobs, green energy and healthy communities.

You can see the complete list of grant recipients here.

biomass

Discount E85 and B5 in Woodbury, MN

ala-mnWoodbury BP Daily Express at 1569 Woodlane Drive will be offering E85 and biodiesel at a discount, tomorrow, August 28
from 10 am – 1 pm. The fuel promotion will offer 50¢ off per gallon of E85 and 10¢ off per gallon of B5. The first 25 FFVs in line will receive E85 for 85¢ per gallon.

mn-soybean-assn“Thank you to the event supporters: Woodbury BP Daily Express, Minnesota Corn Growers Association, Minnesota Soybean Growers Association and the Minnesota Clean Air Choice™ Team,” said Kelly Marczak, with the American Lung Association of the Upper Midwest. She noted that E85 is for flexible fuel vehicles (FFVs) only. FFVs use E85 or gas interchangeably and one can check to see if their vehicle is compatible by looking at their fuel lid door. B5 biodiesel can be used in any diesel engine.

There will be a 30-gallon limit for E85 and biodiesel during the event.

Biodiesel, corn, E85, Ethanol, Ethanol News, News

Indirect Land Use Concerns for Ethanol

Cindy Zimmerman

A conference on land use and carbon impacts of corn ethanol held this week in St. Louis offered a broad view of a significant topic as Washington braces to continue debates on climate change legislation and the future of ethanol.

Geoff CooperGeoff Cooper with the Renewable Fuels Association moderated the first panel at the conference sponsored by the National Corn Growers Association. That panel focused on the modeling used to determine land use change and Cooper says the panel participants pointed out how difficult this can be. “It’s a new area of study and certainly new to a regulatory framework,” Cooper said. “Using these models for these purposes involves lots of subjective decisions and judgement calls and when you put that in the context of a regulation, that’s problematic.”

Cooper says it is important to improve the science behind lifecycle analysis. “These models are only as good as the assumptions you are able to put into them,” Cooper said. “In terms of the indirect land use change analysis, we’re just trying to understand how these models work and replicate the results, and that has been a tough thing to do.’

Cooper says the value of the conference was to let corn growers know the impact that these emerging regulations could have on them in the future.

Listen to or download an interview with Geoff Cooper here:

Audio, conferences, corn, Ethanol, Ethanol News, RFA

Ethanol Producers Win IRS Victory

Cindy Zimmerman

Struggling ethanol producers won an important decision by the Internal Revenue Service this week that allows them to retain the current five year depreciation for assets.

RFAFollowing over a year of intense work by the Renewable Fuels Association with the IRS, the agency has issued a Notice of Proposed Revenue Ruling clarifying that it will not seek to impose a change in the cost recovery periods used by most ethanol producers. Historically, most ethanol producers have used cost recovery (or depreciation) periods of five years. About 18 months ago, IRS advised the industry that the cost recovery period should be seven years instead of five years, and that had to be retroactive, and would apply to all tax returns of ethanol producers that were still open for examination by the IRS. The RFA succeeded in persuading the IRS not to make their decision retroactive.

The RFA told the IRS that their the ruling should not apply retroactively since it would result significant costs to producers who, in good faith, relied on the IRS’ previous acceptance of the 5 year depreciation recovery period for such assets. In response to RFA’s position, the IRS has proposed that the depreciation classification would apply to assets placed in service on or after the publication of a final revenue ruling. To prevent such retroactive application, the IRS specifically provided that it “will not require taxpayers to adopt this depreciation classification for tangible assets used in converting biomass to a liquid fuel such as fuel grade ethanol that are placed in service prior to the publication of a final revenue ruling.”

The IRS has invited public comments on the proposed revenue ruling. Comments are due by November 23, 2009. A final revenue ruling will not be issued until the comments have been considered.

Ethanol, Ethanol News, RFA

Soy Biodiesel Powers Tractor Pull

John Davis

TractorpullThe power of soybean-based biodiesel will be on display this Friday and Saturday nights in Jefferson City, Mo., as the Midwest Xtreme Truck and Tractor Pull, a National Tractor Pullers Association Grand National event, comes to town.

The United Soybean Board (USB) and soybean checkoff sponsor the event at the Cole County Fairgrounds as a way to showcase the homegrown, environmentally friendly and renewable biofuel:

USBlogoUSB staff and Missouri Soybean Merchandising Council staff will be on hand educating pull attendees on the benefits of soy biodiesel and will be available for media interviews. Biodiesel has the best energy return of any liquid fuel, along with increased lubricity, high cetane and the highest BTU content of any renewable fuel.

As part of its sponsorship, the soybean checkoff supplies NTPA with biodiesel to fuel pulling sleds and some track-grooming equipment. In addition, all NTPA on-road diesel-powered vehicles run on biodiesel blends during the 82-event tractor-pulling season.

Biodiesel

Schrum: High Taxes Killing German Biodiesel Industry

John Davis

GermanflagIn what should be a cautionary tale to American lawmakers who might want to raise revenues from biodiesel sales, a leader of Germany’s biofuels industry says high taxes on biodiesel in that country are killing the green fuel there.

This article from Forexyard.com quotes Peter Schrum, president of biofuels industry association BBK, saying that Germany’s nearly 5 million tonnes annual biodiesel capacity is only at about 20 percent of that level:

“The industry is still in a disastrous state largely because of increased taxes,” Schrum said. “Sales are dead.”

Germany increased taxes on biodiesel this year under the government’s continuing programme to raise taxes on green fuels to the same level as fossil fuels.

“Unless there is a major change in policy, biodiesel production in Germany will stop,” he said. “The industry will simply close down.”

The rise in fossil oil prices this year had not generated substantial new biodiesel demand at petrol stations as taxes had made the green fuel uncompetitive, he said.

Producers argue that biodiesel needs to be at least five euro cents cheaper than fossil diesel because vehicles consume more of the green fuel. The tax rises mean the price is almost the same in some German regions.

“The B100 (petrol station) market hardly exists for biodiesel,” he said.

The German biofuels industry is now looking to the Sept. 27th German parliamentary elections as a chance to change lawmakers to those who might reconsider the high-taxing actions.

Biodiesel, International

$300 Mil in Stimulus Bucks Stimulates Alternative Fuels

John Davis

CCawarddistributionmapARRANearly $300 million in American Recovery and Reinvestment Act… aka the “Stimulus Bill”… funds are being handed out by the U.S. Department of Energy to replace or change more than 9,000 vehicles so they will burn alternative fuels and/or make them more fuel efficient, as well as establish nearly 550 alternative refueling stations across the U.S..

Energy Secretary Steven Chu made the announcement today about the selection of 25 cost-share projects under the Clean Cities program:

“The Clean Cities program is helping give state and local governments the tools they need to build a greener transportation system that will create new jobs and help to put America on the path to a clean energy future,” said Secretary Chu. “Advancing the number of alternative fuel and advanced technology vehicles on the road will increase our energy security, decrease our dependence on oil, and reduce pollution across the country.”

Under the Recovery Act, the Clean Cities program will fund a range of energy efficient and advanced vehicle technologies, such as hybrids, electric vehicles, plug-in electric hybrids, hydraulic hybrids and compressed natural gas vehicles, helping reduce petroleum consumption across the U.S. In addition, funding will support refueling infrastructure for various alternative fuel vehicles, including biofuels and natural gas. Other efforts under the Clean Cities program include public education and training initiatives to further the program’s goal of reducing the national demand for petroleum.

The projects announced by Secretary Chu will support a combined total of more than 9,000 light, medium and heavy-duty vehicles and establish 542 refueling locations across the country. The vehicles and infrastructure being funded include the use of natural and renewable gas, propane, ethanol, biodiesel, electricity, and hybrid technologies. And with the cost share contributions from the recipients, every federal dollar spent will be matched by nearly two dollars from the project partners.

The move is expected to save 38 million gallons of petroleum per year.

Biodiesel, Electric Vehicles, Ethanol, Ethanol News, Natural Gas