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Green Plains Restarts Ethanol Plant

green_plains_renewable_energyGreen Plains Renewable Energy, Inc. has restarted their Central City, NE ethanol plant which was recently acquired by VeraSun.

“The Central City plant is on-line and operational after we made some necessary repairs and capital improvements to the plant,” said Todd Becker, Green Plains’ President and Chief Executive Officer. The Central City plant has been idle since November 2008.

The Central City site, along with another in Ord, were purchased from a lending group led by AgStar Financial Services for about $123.5 million. Green Plains took ownership of the plants during the VeraSun bankruptcy.

Based in Omaha, NE, Green Plains owns four ethanol plants in Iowa, Indiana, and Tennessee. It sells its own ethanol and markets ethanol for other producers. The company, founded in 2004, also owns grain storage facilities.

Ethanol, Ethanol News, News

Ford Adds 4 New FFVs in 2010

ford_logoFord Motor Company will offer four new flexible fuel vehicles (FFVS) to their line-up in 2010 totaling eleven models.

Following will be the 2010 models offered through Ford Motor Company with E85 compatible engines.

3.0L Ford Fusion
3.0L Mercury Milan
3.0L Ford Escape
3.0L Mercury Mariner
4.6L Ford Crown Victoria
5.4L Ford Expedition
5.4L Ford F-150
4.6L and 5.4L Ford E-Series Van/Wagon/Cutaway
4.6L Mercury Grand Marquis
4.6L Lincoln Town Car
5.4L Lincoln Navigator

Ford Motor Company began producing FFVs in 1995 with the Ford Taurus. They have made a commitment to allow half their vehicle line as E85 compatible by the year 2012.

Car Makers, E85, Ethanol, News

Economist Barry Flinchbaugh Talks Indirect Land Use

Joanna Schroeder

BarryFlinchbaughYesterday during the International Federation of Agricultural Journalists Congress/Ag Media Summit, a “Great Debate” ensued between retired K-State ag economist Barry Flinchbaugh and former Texas congressman Charlie Stenholm. Their topics were ag policy and trade but a lot of the focus was on the new cap and trade legislation, climate change and indirect land use.

I had a chance to speak with Flinchbaugh for a few minutes after the session to have him expand on climate change and renewable fuels.

“Front and center is renewable fuels and climate change and you can’t separate the two. And the question is global warming a hoax is a stupid question because the political system worldwide has decided that its for real and things are going to happen,” said Flinchbaugh. “The Supreme Court gave the EPA the authority to regulate greenhouse gas emissions. So to pretend we can whip this, we being agriculture is ridiculous. We can’t whip this and we need to get inside the tent and help make the decisions.”

Although his comments on how current climate change policy will affect both America and the international communities are insightful, I wanted to know how the cap and trade bill would affect the profitability of farmers in America. To put his answer in perspective, Big Oil receives 2 percent in credits and agriculture receives 7 percent.

“I think we can come out a net winner but we need to refine the current law to do this,” answered Flinchbaugh. But what happens when you add the policy surrounding indirect land use (which has been deferred for five years)?

“No. Absolutely not. And this whole indirect land use issue is an emotional bogus issue. One of the things that Colin really got done was put this off for five years. One of the things we can do in the next five years is prove this is bogus issue.”

Listen here to the joint interview with myself and Kansas Ag Network reporter Greg Akagi.

Agribusiness, Audio, biofuels, Indirect Land Use, News

Farm Foundation Recognized for Food & Biofuels Study

John Davis

FarmFoundationlogo2A report on food prices and the role biofuels have played (and have not played) in the spike of those prices has been recognized for a very prestigious award.

WhatsDrivingFoodPricesThe Farm Foundation report entitled “What’s Driving Food Prices?” released last year has won the 2009 Quality of Communication Award presented by the Agricultural and Applied Economics Association (AAEA) for the report’s objective, comprehensive look at how last year’s spike in oil prices was largely responsible for the spike in food prices, while increased ethanol demand played a smaller role (although it got more of the blame):

The report was written by Wallace Tyner, Philip Abbott and Chris Hurt, all agricultural economists at Purdue University. They identified three main drivers of food prices–depreciation of the U.S. dollar, changes in production and consumption, and growth in biofuels production. When it was released in July 2008, the report received wide distribution both nationally and internationally through the Farm Foundation Forum at which it was released, subsequent press coverage, and a webinar.

Within six months, food supplies had stabilized and economic conditions had changed dramatically. In light of these changes, Farm Foundation asked the three authors to update the report. Released in March 2009, the updated report showed that the three primary drivers of food prices remained unchanged, despite the significant reversal of conditions.

Three other Farm Foundation projects were also recognized by the AAEA Awards Committee. The Quality of Research Discovery Award went to Alan L. Olmstead of the University of California, Davis, and Paul W. Rhode, of the University of Arizona, for their book, Creating Abundance: Biological Innovation and American Agricultural Development; the Outstanding Article Award for AAEA’s Choices magazine went to Bruce A. McCarl of Texas A&M University and Steve K. Rose of the U.S. Environmental Protection Agency for the article, “Greenhouse Gas Emissions, Stabilization and the Inevitability of Adaption: Challenges for U.S. Agriculture;” and three students were honored in the AAEA Graduate Student Extension Competition. First place went to Anna Flaig of Purdue University; second to Sonja Peraski of Michigan State University; and third to Daniel Sanders of Ohio State University. Farm Foundation funds the awards for this competition.

Biodiesel, Ethanol, Ethanol News, Farm Foundation, News

Phibro Responds to Use of Antibiotics in Ethanol Industry

Joanna Schroeder

EthanolPerformanceThe Institute for Agriculture and Trade Policy (IATP) recently published a report that called for the ethanol industry to stop using antibiotics in the production process. Many believe that this report is just one of many initiatives the IATP has to fight the modernization of the agriculture and livestock industry and that they are attempting to manufacture controversy.

Antibiotics are widely used in production of biofuels as a critical tool for infection management. Through the use of small amounts of antibiotics such as Phibro’s Lactrol antimicrobial, the U.S. biofuels industry eliminates the need to plant an additional 3.2 million acres of corn to produce 500 million bushels of corn.

CowsDistillJust last week, Phibro Animal Health Corporation (Phibro) released a study from its Ethanol Performance Group showing that the use of antibiotics is safe.

According to Phibro, IATP’s position, that use of antibiotics in the production process results in residues in distillers’ dried grains (DDG) in turn putting human health at risk is a stunningly broad conclusion not based upon fact or science. The IATP’s broad policy statement fails to mention:

  • •    The proper use of antibiotics is a safe practice in both renewable fuels and in animal husbandry that preserves our precious agricultural resources such as land and water.
  • •    Since its introduction in 1993, Lactrol® has remained a safe product for use in renewable fuels production and distillers’ grain production. It has been sold under an FDA letter of no objection in addition to the regulatory discretion of the FDA’s Center for Veterinary Medicine (CVM).
  • •    In the past 3 months Lactrol® alone has been sold to far greater than 55% of the current operating plants. The IATP falsely asserts that 45% of current producers are able to operate without antibiotics.

This is just one negative issue among many that are splashed across the papers on a daily basis. However, biofuels are the only viable solution we have today to offset foreign oil imports. Click here to read the full statement from Phibro.

Company Announcement, Distillers Grains, Ethanol, Ethanol News

First E85 Station in Coolidge, AZ to Open

Joanna Schroeder

The first E85 station in Coolidge, Arizona is opening tomorrow, July 31. The grand opening celebration will be held from 10 a.m. to 2 p.m. at the station location at 295 S. Arizona Blvd. in Coolidge. The celebration will include a ribbon-cutting and comments from city officials.

ethanol-mapThe station, opened in conjunction with Coolidge Chevron (Discovery Fuels), Pinal Energy and the Tucson Regional Clean Cities Coalition as well as the Renewable Fuels Association, will celebrate the opening by offering E85 at a discounted 85 cents per gallon for 85 minutes (from 10:30 a.m. to 11:55 a.m.). Customers will also be able to purchase pizza and soda for 85 cents during the same time period.

Robert White, Director of Market Development for RFA, said, “This is an exciting day for the consumers of Pinal County. Consumers now have a choice to use an American fuel that was made just down the road at Pinal Energy.”

“Bringing a clean fuel alternative like E85 to the Pinal County consumer, being a good community partner and being a part of building a better tomorrow was important to Coolidge Chevron,” said Mike Mennenga, owner of the Coolidge Chevron. “The timing makes sense given current gasoline prices and the renewed focus on preserving our environment.”

To learn more about ethanol and to find E85 stations near you, visit RFA’s new consumer website, Choose Ethanol. And if if you haven’t already, don’t forget to send in your summer vacation photo for a chance to win free fuel.

Ethanol, Ethanol News, RFA

Central City & Ord Ethanol Plants Back in Production

Joanna Schroeder

GPRELogoGreen Plains Renewable Energy announced today that their recently acquired ethanol plant located in Central City, Neb. is back in production. This 100 million gallon per year (mpy) biorefinery has been idle since November 2008. Green Plains said they made necessary repairs and capital improvements to the plant.

This plant was purchased from AgStar Financial Services back in May. AgStar became the default owners of the plant, along with one in Ord, Neb. when VeraSun Energy filed for bankruptcy. Earlier this month, Green Plains also announced that the plant in Ord also commenced operations – just 8 days after the purchase became official.

“The startup of the Ord plant within eight days of completing the purchase is a testament to our operational experience and our considerable understanding of the plant technology,” said Todd Becker, Green Plains’ President and Chief Executive Officer. “The Ord plant has been idle since November 2008, but based on our expertise, we developed and executed a comprehensive plan that allowed us to quickly achieve this milestone. We are glad to bring this plant back online producing ethanol.”

Green Plains, based in Omaha, Neb., is North America’s fourth largest ethanol producer with a combined operating capacity of 480 mgy.

Company Announcement, Ethanol, Ethanol News

FFV Campain Announced at Farm-to-Fuel Summit

farmtofuelAccording to the Clean Fuels Foundation, a national consumer awareness campaign aimed at owners of flexible fuel vehicles (FFVs) was officially launched at the Farm-to-Fuel Summit. The project is a cooperative effort between key Florida state government interests, gasoline/E85 distributors, ethanol companies, and several nonprofit environmental and energy advocacy groups.

The Florida Farm-to-Fuel Summit provided the forum for Charles Bronson, Florida Commissioner of Agriculture and Consumer Services, to announce that the state would be taking a proactive role aimed at increasing the use of higher blends of renewable biofuels, like ethanol, in flexible fuel vehicles (FFVs). “Our state has developed a comprehensive strategy to become more energy independent with clean, sustainable, and affordable fuel sources,” said Governor Crist. “Today’s announcement is one more step that our state can take in the effort to become better stewards of our natural resources.”

“The FFV Awareness driver education project is designed to locate and encourage drivers of FFVs to try higher blends of ethanol when they are available. This will help Florida meet its goals of reducing the cost of and reliance on imported oil, improving air quality, and creating economic development opportunities – all while reducing greenhouse gases. This is a Win-Win-Win for Florida drivers, the state government, and the nation,” said Douglas A. Durante, Director of the Clean Fuels Foundation.

There are currently thirty E85 stations in the state, with a majority of them located in the South Florida market.

ffv-clubThe Clean Fuels Foundation and the FlexFuel Vehicle Club of America are the project organizers in cooperation with the Florida Department of Agriculture and Consumer Services. The lead sponsor for the pilot project is the Renewable Fuels Association. Other project supporters include General Motors, Verenium, Protec Fuel Management, Urbieta Oil, Florida Biofuels Association, and the USDA Office of Energy Policy and New Uses.

Car Makers, E85, Flex Fuel Vehicles, News

Mass. Hands Out $2.2 Mil in Wind Energy Grants

John Davis

The State of Massachusetts has handed out $2.2 million to fund nine new wind energy projects.

This press release from the state’s Executive Office of Energy and Environmental Affairs says the agency’s secretary, Ian Bowles, made the announcement of the grants awarded by the Massachusetts Renewable Energy Trust through the new Commonwealth Wind Community-Scale Wind initiative:

ianbowles“Wind energy is a core component of Governor Patrick’s plan for the Commonwealth’s clean energy future,” said Secretary Bowles. “These nine grants will help get more wind turbines installed and help more community institutions reduce their use of fossil fuels.”

The Governing Board of the Massachusetts Renewable Energy Trust approved the grants totaling more than $2.2 million. Project funding included design and construction grants for three new wind projects totaling more than 4 megawatts (MW) in capacity, and six feasibility studies for wind energy that would total more than 3 MW in capacity if built. The nine grants go to public projects, educational institutions, a farm, and a shopping center. Funds for the Trust come from renewable energy charges on electric bills, which generate roughly $25 million a year to support renewable energy installations and companies.

“These heavy energy-users—municipal and state facilities, schools, retail centers, and farms—have much to gain from wind power, and the Trust is glad to be able to put wind power within their reach,” said Phil Giudice, Commissioner of the Department of Energy Resources (DOER) and chair of the Trust’s Governing Board.

The three projects receiving design and construction grants are the town of Hanover, for its wastewater treatment plant; the Lynn Water and Sewer Commission; and the Massachusetts Department of Correction, for North Central Correction Institution-Gardner.

Awards for the six feasibility studies go to Allen Farm, Martha’s Vineyard; Cape Cod Academy, Osterville; Centerville-Osterville-Marston Mills Fire District; Colony Place, Plymouth; Falmouth Academy, Falmouth; and Up-Island Regional School District, Chilmark, Aquinnah, and West Tisbury.

You can read more about each project here.

Wind

JB Hunt’s Big Rigs Running on Algae Biodiesel

John Davis

JBHunttrucksNational carrier J.B. Hunt has committed to burning algae biodiesel in its semi-trucks.

This post on the FleetOwner blog says that after successfully testing 20 and 50 percent blends of SunEco Energy’s biodiesel, made from algae oil, J.B. Hunt found it reduced emissions by more than 80 percent without any loss of power:

“Producing renewable fuel supplies from algae grown in American ponds is an intriguing new option,” noted Gary Whicker, senior vice president of engineering for J.B. Hunt, in a press statement. “Our initial experience with their algae-based biodiesel is promising, and we are excited about the opportunity to work … towards a lower cost, less carbon intensive, and more secure energy supply for our business.”

I’ve talked about the potential for algae as a vehicle fuel stock in this space before – just last year in fact – but I didn’t think we’d be seeing it put through its paces in trucking this soon. And frankly, I shouldn’t be surprised that J.B. Hunt of all carriers is forging ahead with a plan to use algae-based biodiesel in its trucks, for this is a carrier long known for doing things differently – a hallmark of its late founder, Johnnie Bryan Hunt.

While the post does point out that algae biodiesel is still some time from commercial viability, the fact that a billion dollar carrier like J.B. Hunt is taking on a project like this shows that someone sure thinks that profitability running algae biodiesel can’t be that far away.

algae, Biodiesel