USDA Gives $13 Mil for Renewable Energy Projects

John Davis

usda-logoThe USDA is handing out another $13 million in loans and grants for 233 renewable energy projects in rural areas of 38 different states.

The projects were announced in this press release and during a speech at the Farm Progress Show in Illinois, that included some of the highlighted projects:

The loan guarantees and grants can be used for renewable energy systems, energy efficiency improvements, feasibility studies and energy audits. These funds are not part of the American Recovery and Reinvestment Act.

In Story City, Iowa, Milford Wind Energy, LLC, has been selected to receive a $1.8 million guaranteed loan and a $500,000 grant to build a 900 kilowatt wind turbine for energy generation. When complete, the turbine is expected to produce nearly 3.3 million kilowatts of electricity annually and generate more than $200,000 in electricity that will be sold to the local utility company. Construction of the turbine is expected to be completed next year.

REAP funding is already contributing to increased renewable energy production. For example, in 2003, USDA Rural Development approved a $300,000 renewable energy grant to Lincolnland Agri-Energy, LLC., in Palestine, Ill. The 453-farmer cooperative operates a livestock feed production plant and a 49-million-gallon-per-year ethanol plant. The grant enabled the cooperative to by a $1.4 million thermal oxidizer to control plant emissions. This critical piece of equipment removes 75 percent of the emissions from the dryer exhaust without reducing plant performance. The oxidizer has another benefit: the heat it produces is captured in a steam recovery system and turned into energy. Lincolnland’s USDA grant produced 37 local jobs.

You can read the complete list of projects here.

Ethanol, Ethanol News, News, Wind

DF Cast: Biodiesel Makes Engines Roar

John Davis

usb-tractor-pull-shramekOn a warm, clear summer evening in Central Missouri, the night air practically thunders to life as 3,000 horsepower of tractor-pulling power is started and modified machines of farm implement heritage rumble down a dirt track. While the behemoths of the National Tractor Pullers Association Midwest Extreme Truck and Tractor Pull are pushed to the limits of what an engine will do, they are doing it with a green blend of soybean-based B20 biodiesel.

usb-tractor-pull-bungartThis United Soybean Board (USB) and soybean checkoff sponsored event is a chance to highlight the great performance of the green fuel in these extreme conditions.

Domestic Fuel caught up with a couple of the players at the recent event in Jefferson City… corn & soybean farmer and puller Dennis Shramek, along with Donnie Bungart, who makes and runs the biodiesel-powered sleds… to get their thoughts on the sport and the biodiesel that fuels all that power.

You can hear their comments… and feel a bit of the biodiesel-fueled thunder… here: [audio:http://www.zimmcomm.biz/domesticfuel/DFCast-9-04-09.mp3]

You can also subscribe to the DomesticFuel Cast here.

Audio, Biodiesel, Domestic Fuel Cast, Soybeans

Nebraska Ethanol Industry Bounces Back

According to the Governors’ Biofuels Coalition (GBC), Nebraska’s ethanol industry has nearly recovered from the economic doldrums it faced last year and is back near full production capacity.

An important indicator that the ethanol industry is recovering, Todd Sneller said of the Nebraska Ethanol Board, is the “modest job increase” they saw in the ethanol industry while reviewing state ethanol data comparing 2008 to 2009.

ne-ethanol-brd“While overall it may only be a couple of dozen jobs on a statewide basis, it is an important signal because we were in a period of real economic turmoil in the ethanol sector, but yet we didn’t see layoffs in those plants, even the ones that went through bankruptcies, and in a couple of cases we saw companies use this time to modify their plants to create addition production capabilities, such as corn oil extraction,” Sneller said.

According to Sneller, during the last three to four months plants have been starting to operate much closer to their operational rate of capacity, so if they were operating at 70 percent to 80 percent of capacity, they are now operating “much closer to 100 percent of capacity.”

Ethanol, Ethanol News

Ethanol Production Numbers Announced for June ’09

Joanna Schroeder

2006_07_11_Ethanol_Plant_lgU.S. ethanol production is on the rise with the news that the industry has set new production records. According to the Energy Information Administration (EIA), American ethanol facilities produced 694,000 barrels per day (b/d) in June 2009. That is up 109,000 b/d from a year ago.

Ethanol demand, as calculated by the Renewable Fuels Association (RFA), continues to outpace production. According to RFA calculations, demand was 721,000 b/d in June, up from 633,000 b/d a year ago. EIA also reports fuel ethanol imports of 29.5 million gallons in June.

The RFA released the following statistics:

June 2009 Statistics (mg = million gallons; b/d = barrels per day)

Fuel Ethanol Production: 874.5 mg / 694,000 b/d
Fuel Ethanol Use: 904.0 mg / 721,000 b/d
Fuel Ethanol Stocks: 583.9 mg / 19.3 days of reserve
Fuel Ethanol Exports: 0.0 mg
Fuel Ethanol Imports: 29.5 mg

Ethanol, Ethanol News, RFA

Ethanol in Focus at Farm Progress Show

Cindy Zimmerman

Illinois EthanolEverywhere you go at the 2009 Farm Progress Show in Decatur, Illinois this week, people are talking about ethanol.

Over at the corn grower tent marked by 30+ foot high corn stalks and an E85 blimp hovering overhead, they have information about how the carbon footprint of corn production has declined substantially in recent years and they are encouraging farmers to submit comments to Environmental Protection Agency about the Renewable Fuel Standard.

Bob DinneenRenewable Fuels Association president and CEO Bob Dinneen toured the Farm Progress Show on Wednesday and was able to visit many of the exhibits, talk with farmers and do interviews with agricultural media representatives. Dinneen says most of the corn growers are telling him the crop looks very good this year. “I wish that there were more policy makers, government officials, regulators here at this event to see how much progress has been made and see what modern agriculture is all about,” said Dinneen. “This is not your grandfather’s farm anymore!” He says with the second largest corn crop on record expected to be harvested this year, American farmers continue to prove that they can produce enough corn to make ethanol and feed the world as well.

Ethanol, Ethanol News, Farming, RFA

Biotricity Turning Waste into Fuel

John Davis

BiotricitySaying it is on a path less taken, a Houston, Texas company is looking for alternatives to alternative energy.

To that end, Biotricity Corporation has announced through this press release poster on Reuters.com that it is pursuing a strategy to make energy out of biomass:

Biotricity’s technology can take raw waste products such as sawdust, wood chips, corn stover or begasse and convert them directly into electricity. Our feedstocks are abundant and cheap, and our estimated future cash flow compared to capital costs exhibits a far superior return on capital invested. By keeping our feedstock costs relatively low, we plan to produce green power faster and
cheaper than our competitors.

“At Biotricity, we believe America needs practical solutions to generating its energy at home in order to reduce our enormous dependence on foreign imports,” stated Tyson Rohde, CEO. “Many ethanol and biodiesel processes make for an interesting story, but often don’t make sense with current economic conditions,” he added. Biotricity has developed a new combustion technology for the burning of woody biomass to generate electricity to address America’s growing demand for green power. Biotricity will generate green power from renewable energy sources and expects to reduce carbon emissions that would otherwise result from the natural decay of the biomass it burns.

Biotricity is also touting its proprietary Biotricity Power Generator that makes electricity from biomass.

biomass

New Washington State Biodiesel Plant Comes On Line

John Davis

InlandEmpireOilseeds2A new, eight-million-gallon-a-year biodiesel plant in Washington state has come on line with the opening of the facility’s canola crusher, joining its biodiesel brewer that began refining last November.

This article from the Ritzville Adams County Journal says the Inland Empire Oilseeds plant in Odessa, Washington is a one-stop shop for the green fuel:

“With the addition of the crusher, IEO becomes the first biodiesel company in Washington to fully integrate all production steps into one place – from crushing to rail tank car,” said Steve Starr, company general manager.

“Our new crush line reduces production costs. That results in savings we can pass on to our customers. Those savings, plus the recent rise in oil prices, make our biodiesel more competitive than ever with petroleum-based diesel.”

Starr said that because the company has taken advantage of existing infrastructure and carefully managed its equipment procurement costs, IEO also has a lower capital cost per gallon than its competitors.

IEO’s crushing and refining facility is housed in a 28,000-square-foot preexisting building situated next to a grain elevator and a 26-car rail siding that adjoins the Burlington Northern Santa Fe mainline. IEO also recently added 60,000 gallons of storage to better manage deliveries as demand has grown. IEO’s annual production capacity is eight million gallons.

The plant was founded after a 2006 law encouraged in-state oilseed production and refinement into biodiesel. A $4.3 million low-interest loan from Washington state’s Energy Freedom Fund helped the project get off the ground.

Biodiesel

Illinois Ups Biodiesel Mandate to 5 Percent

John Davis

QuinnLegislation that increases the amount of biodiesel state and local governments in Illinois must use has been signed into law by Gov. Pat Quinn.

Biodiesel Magazine reports now the biodiesel blend for use by diesel-powered vehicles owned by the state or local governments when refueling at a bulk central fueling facility moves up from 2 to 5 percent:

The Illinois Soybean Association applauded the legislative leaders who supported the pro-biodiesel legislation. “Illinois is a model for how states can stimulate their economies by opening doors for greater biodiesel use and production,” said Ron Moore, chairperson.

Illinois also has an incentive that cuts sales taxes by 20 percent on biodiesel blends up to B10 and a full exemption from the state sales tax of 6.25 percent for B11 and above.

Biodiesel, Government

California Groups Awarded DOE Funds for 55 E85 Stations

ae_biofuelsAE Biofuels, Inc., a global vertically integrated biofuels company, and Pearson Fuels, an alternative fuels provider, have been awarded $6.9 million by the US Department of Energy to build 55 E85 fueling facilities in the state of California. The alternative fueling sites will be built within the next 42 months.

The Southern California Association of Governments applied for the money through their Clean Cities Coalition, The Partnership. Since 1994, The Partnership has been facilitating the creation of public/private business relationships and endeavors that serve to accelerate the deployment and market acceptance of Advanced Transportation Technologies throughout Southern California. In addition, The Partnership has received preliminary approval for a $4 million from the California Energy Commission, through its AB-118 matching grant program.

pearson-fuelsMike Lewis of Pearson Fuels said, “I am excited to see that we are now in a stronger position to bring alternative fuel infrastructure to the hundreds of thousands of flexible fuel vehicles already on the California roads while measurably reducing the State`s dependence on foreign oil imports.” Pearson Fuels already has 13 E85 stations within California. He claims that construction of the projects should begin by the end of 2009.

The USDOE estimates that the initiative will help displace approximately 3.5 million gallons of petroleum annually.

“We are excited about the grant award, and we look forward to working with Pearson Fuels to bring our next-generation cellulosic ethanol to consumers,” said Eric McAfee, chairman and CEO of AE Biofuels. “California has over 300,000 flexible fuel vehicles already on the road today, but only a handful of E85 pumps at the state`s 9,000 stations. This grant will allow us to bring cellulosic E85 fuel to drivers around the state and meet the demand for carbon reducing fuels.”

E85, Ethanol, Government

Grassley to Host EPA Officials at Iowa Biodiesel Plant

John Davis

grassley3U.S. Sen. Chuck Grassley (R-Iowa) will play host to a pair of EPA officials at an Iowa biodiesel plant this coming Thursday at 3 pm. Let’s hope he can use the opportunity to teach them the REAL math behind the amount of corn and soybeans it takes to make ethanol and biodiesel.

This story from Biodiesel Magazine
says Grassley will talk biofuels at the 30-million-gallon-a-year Central Iowa Energy biodiesel plant in Newton, Iowa with EPA assistant administrator of the Office of Air and Radiation, Gina McCarthy, and EPA director of the Office of Transportation and Air Quality, Margo Oge, who will also visit a family farm and agricultural businesses:

The purpose of Grassley’s invitation was to highlight how EPA policies and regulations impact his constituents in Iowa. Jeff Stroburg, CEO and chairman of Renewable Energy Group Inc., the plant’s managing company, and others in the business will discuss the proposed RFS2 ruling with the senator and two EPA officials.

Many in the industry are calling on EPA to install interim rules to trigger the biomass-based diesel volume requirements sooner rather than later, and to reconsider how the agency negatively views soy-based biodiesel in its faulty indirect land use assumptions.

As you might remember… and you can see in the clip below… Oge is the goofus who believes that it takes 64 acres of corn to make one gallon of ethanol and 400 acres of soybeans for each gallon of biodiesel. Actually, one acre of soybeans makes 64 gallons of biodiesel and one acre of corn makes over 400 gallons of ethanol. And these are the folks deciding Indirect Land Use formulas? Let’s hope Grassley sets her straight.

Biodiesel, Ethanol, Ethanol News, Government, News