Iowa Railroad Tests Biodiesel

John Davis

IowaInterstateRailroadSome trains in Iowa are burning locally produced biodiesel to see about the green fuel’s long-term viability in locomotives.

The Omaha World Herald reports that Cedar Rapids-based Iowa Interstate Railroad has been testing a B5 blend from Ames-based Renewable Energy Group and will increase it to B20 over the course of the eight-month test:

“Our company has been looking at biodiesel as an alternative to diesel fuel for some time,” said Dennis Miller, president and CEO of Iowa Interstate.

The locomotive being used in the test is an older one that is part of a “slug” unit used mainly to switch cars in a yard. It operates virtually around the clock.

The engine’s performance is being analyzed to determine the effects of biodiesel fuel on horsepower, fuel economy and engine wear. The tests will continue into the winter to determine how biodiesel affects the locomotive’s performance in cold weather.

Miller said the trial could open the door for more than 600 railroads to add biodiesel as a fuel source.

Right now, no makers of large diesel locomotive engines approve of biodiesel because there’s little data on the effect it has on those types of engines. But if things work out, that will all change by the time this testing is done, and maybe the manufacturers will give the green light to the green fuel.

Biodiesel

Valero Eyes Animal-Fat Biodiesel Ventures

John Davis

ValeroAfter venturing into ethanol, Valero Energy Corp. could be looking at getting into the biodiesel business.

As you might remember from this past spring, the petroleum company got into ethanol when it bought five ethanol plants from bankrupted Verasun (see Cindy’s post from April 1, 2009). It’s just a small mention at the end of this story on CNN Money, but this short phrase could be an indication of Valero’s want to expand even more into green energy:

Valero isn’t seriously considering any acquisitions in the refining or ethanol space, he said. However, “we are looking at opportunities in the animal-fat area” as a low-cost biodiesel option, [Chief Executive Officer Bill Klesse] said.

As I mentioned before, Valero continues to grow in renewable energy besides buying the old Verasun ethanol plants, investing in cellulosic ethanol company Qteros (see Joanna’s post from May 18, 2009) and using wind energy to refine its petroleum (see my post from June 29, 2009). If they get behind this latest idea for biodiesel like they have with ethanol, look for Valero to soon become a player in the biodiesel market.

Biodiesel

Ethanol Report on USDA Crop Forecast

Cindy Zimmerman

Ethanol Report PodcastThis edition of “The Ethanol Report” features comments from Geoff Cooper with the Renewable Fuels Association on today’s increased corn crop forecast from USDA, how it disputes the indirect land use change theory and food versus fuel debate. Cooper also comments on the importance of ethanol to our national security as we remember the anniversary of the 9-11 terrorist attacks and celebrate the grand opening of a new ethanol plant in Minnesota.

You can subscribe to this twice monthly podcast by following this link.

Listen to or download the podcast here:

Audio, Ethanol, Ethanol News, Ethanol Report, Indirect Land Use, RFA, USDA

More Corn for Ethanol

Cindy Zimmerman

NASSThe U.S. Department of Agriculture increased the forecast for the nation’s corn crop by two percent in the September crop production report out Friday morning. The forecast is now an even 13 billion bushels, just 100 million bushels short of the 2007 record crop. The soybean crop, already expected to be the biggest ever, was boosted another one percent in the forecast to 3.25 billion bushels.

USDA is now saying yields are expected to average 161.9 bushels per acre, up 2.4 bushels from August and 8.0 bushels above last year. Yield forecasts increased from last month across the western Corn Belt and the northern half of the Great Plains as mild temperatures and adequate soil moisture supplies provided favorable growing conditions.

Some analysts believe the corn crop could ultimately be the largest ever. Even though both crop progress remains far behind normal, the weather forecast is calling for generally warm, mostly dry weather stretching into next week or so, which is great news for producers.

corn, Ethanol, Ethanol News, Farming, USDA

Manitoba to Institute Canada’s First Biodiesel Mandate

John Davis

CRFA1Manitoba will become the first province in Canada to require biodiesel in all diesel fuel when it mandates the blending of 2 percent biodiesel by November 1, 2009.

The news was welcomed by the Canadian Renewable Fuels Association:

“Today is a good day for homegrown biofuels in Manitoba and Canada,” said Gordon Quaiattini, President of the Canadian Renewable Fuels Association. “With today’s decision, Manitoba will become the first province in Canada to realize the many benefits of blending biodiesel in its fuel supply. Biodiesel is good for the environment, good for farmers, and good for the economy.”

The Manitoba 2% biodiesel mandate alone is equal to reducing greenhouse gas emissions by 56,000 tonnes a year, or taking 11,000 cars off the road.

British Columbia will mandate a 5 percent biodiesel blend at the beginning next year, while Alberta will institute a 2 percent biodiesel mandate by July 1, 2010.

Biodiesel, Government

Early Bird Registration Looms for Biodiesel Conference

John Davis

NBB10 logoIt’s that time of year again… time to start talking about the National Biodiesel Conference and Expo!

Now, if you’re looking at your calendar, you’ll notice that the National Biodiesel Board’s premier event is still about five months off, scheduled to take place February 7-10 at the Gaylord Texan hotel, just a few minutes from the Dallas-Ft. Worth Airport. But now is the time to start making plans, and, in fact, Sept. 18th is an early bird deadline for exhibitors to take advantage of the best savings and to reserve the best booth space. Click here to register and for more information.

Meanwhile, our friends at the NBB say by listening to previous attendees and exhibitors, they are improving the networking possibilities for the numerous biodiesel marketers, feedstock growers, fuel distributors, government leaders and other biodiesel stakeholders.

From our new Monday evening reception in the Exhibit Hall, the addition of a new Biodiesel Networking Center in the Exhibit Hall, a new and improved NBB Connections social networking system to the numerous open forum “round table sessions” that will be offered this year, NBB wants to assist in these efforts to connect and learn! We believe these additions and changes to the program will create boundless networking opportunities and allow you to meet new people with some of the same biodiesel interests. Where better to meet than the premier biodiesel conference in the country?

For more information contact the NBB Conference Office at 303-798-3664 or e-mail at nbb@kinsleymeetings.com.

Biodiesel, Biodiesel Conference, NBB

Minnesota Ethanol Plant Grand Opening

Cindy Zimmerman

After more than three years of planning and construction, Highwater Ethanol in Lamberton, Minnesota is ready to open the doors and celebrate. The plant was officially announced on June 7, 2006 and began grinding corn last month.

The new 55 million gallon a year facility will hold its grand opening on September 11, the eighth anniversary of terrorist attacks on American soil which the Renewable Fuels Association notes are a “reminder of the threats posed to our nation every day, the bravery of our armed forces, and the vulnerability created by our heavy reliance on foreign sources of energy.”

Among the dignitaries scheduled to attend the event is Congressman Collin Peterson (D-MN), chairman of the House Agriculture Committee.

Ethanol, Ethanol News, RFA

Fall Issue of Ethanol Retailer Magazine Available

fall09_ethanolretailerThe Fall 2009 of Ethanol Retailer has recently been published by Growth Energy. The free pulication, distributed to over 25,000 retailers nation wide, is geared specifically towards independent ethanol retailers and petroleum marketers.

The magazine encourages installation of mid-level and E85 blends and provides the necessary information to retailers on the installation process at their station. The publication also highlights financial opportunities and incentives available to retailers for installation of ethanol blended fuel.

A few highlights of the Fall 2009 issue includes: first person stories on how two independent retailers took the fast track to installing blender pumps in Ohio and Inidana; mapping ethanol use in the U.S.; and the race to develop high-performance engines that are powered by ethanol.

See a copy of the Fall 2009 edition of Ethanol Retailer by clicking here.

E85, Equipment, Ethanol, Ethanol News, Growth Energy

Brazilian Sugar Crop Forecasts Dropped

Joanna Schroeder

sugarcaneIn a follow up to a recent post about the forecasted record sugarcane harvest in Brazil, it appears that this won’t come to fruition. UNICA, the Brazilian Sugarcane Industry Association, has released today the news that heavy rains in South-Central Brazil, the country’s top sugarcane producing region, caused a drop of 23.8 percent in the volume of sugarcane crushed during the second half of August, as compared to the two weeks prior.

According to UNICA, the sharp reversal in climatic conditions caused several cane-growing regions to interrupt crushing in more than 50 percent of the available time. States most affected were São Paulo, Mato Grosso do Sul and Parana, with a crushed cane reduction of more than 30 percent compared to the first half of August.

The organization has also reported that accumulated ethanol exports so far in the harvest stood at 1.79 billion liters, 25.66 percent less than the 2.41 billion shipped abroad in the same period of the previous harvest. While anhydrous ethanol exports decreased by 67.4 percent, hydrated ethanol exports surged by 24.75 percent.

The volume of domestic sales is the result of two factors: sales of flex-fuel vehicles, which in August surpassed 94 percent of the total sales of Otto Cycle vehicles, increasing the fleet of flex vehicles to 35 percent of Brazil’s total; and the competitiveness of hydrated ethanol in comparison to gasoline prices at the pump. In more than 82 percent of the Brazilian market, prices at the pumps were below 65 percent of the price of a liter of gasoline.

UNICA’s revised projection for the production of sugar and ethanol in the 2009/2010 harvest will be released with the next harvest update, at the end of September.

Cellulosic, Ethanol, News

Biodiesel Nets Soy Growers Extra $2.5 Bil Since 2005

John Davis

USBAmerican soybean growers have netted an extra $2.5 billion over the past four years, thanks to demand for soybean-based biodiesel.

This story from Feedtuffs.com says a new United Soybean Board and soybean checkoff-funded study also found that biodiesel added 25 cents to the price of a bushel of soybeans:

Because the price of petroleum diesel has such a large influence on the price of biodiesel and soybean oil, the study asserts that the biodiesel industry has essentially created a new floor for soybean oil prices.

Additionally, the study found that higher demand for soybean oil led to an increased supply of soybean meal, resulting in meal prices dropping by $19 to $45 per ton.

SoyBiodiesel“Any lowering of the price of inputs for the animal agriculture industry is a plus,” Bainbridge said. “The swine and dairy industries have had a tough time lately. This is a benefit for them. Every little bit helps in the poultry and livestock industries as far as decreasing their costs. And this demonstrates how biodiesel demand can have a positive impact on this important aspect of our food supply.”

You can read the results of the study at the USB Web site.

Biodiesel, Soybeans