DF Cast: Charting the Future of Ethanol

John Davis

df-logo2Attendees of the recent Fuel Ethanol Workshop and Expo in Denver, Colorado heard something they most likely already knew: the past year was a rough one for the ethanol industry.

While some folks such as Mike Bryan, CEO of BBI International point out that much of the green fuel’s woes were a concerted effort by those outside of the industry to spread misinformation, Bryan and Bob Dinneen, President and CEO of the Renewable Fuels Association insisted it’s time for ethanol to take back the message and spread the good news… like the fact that the industry has created 500,000 jobs and pumps $66 billion into the American economy.

Others focused on how new, alternative feedstocks, in particular, cellulosic, and advances in corn technology will make it possible to have the food, feed and fuel this country needs in the years to come.

It was a fascinating discussion, and we bring you a bit of the conversations from FEW in this latest edition of the Domestic Fuel cast. Listen to folks like Bryan; Dinneen; Dave Vander Griend, CEO of ICM Incorporated; Jeff Broin, CEO of ethanol producer POET; David Hiller, Executive Director of the Colorado Renewable Energy Collaboratory; and Larry Johnson from the North American Business Development division of biomass ethanol producer Inbicon here: [audio:http://www.zimmcomm.biz/domesticfuel/DFCast-6-28-09.mp3]

You can also subscribe to the DomesticFuel Cast here.

Audio, Domestic Fuel Cast, Ethanol, Ethanol News, FEW, News, POET, RFA

More Distillers Grains Heading North

Cindy Zimmerman

Poor crop conditions and higher grain prices north of the border are causing an uptick in exports of the ethanol co-product dried distillers grains (DDGS) to Canada.

According to the U.S. Grains Council, 350 cars containing approximately 31,500 metric tons of DDGS were purchased last week by Canada’s largest distiller’s grains importer, Rycom Trading Ltd. Ryan Slozka, senior trader at Rycom says that poor weather has caused inadequate pasture conditions in Canada this year. “Western Canadian feeders rely heavily on U.S. DDGS and now possibly whole corn, which we are watching closely. We will wait and see if crop conditions improve here in western Canada, but as long as cattle feeders continue to see good results with feeding U.S. corn DDGS, we anticipate this upward trend in demand to continue,” said Slozka.

In 2008, Canada imported 772,000 tons of U.S. DDGS, up 453,000 tons from 2007, making Canada the second largest market for U.S. DDGS. This year’s imports are already running ahead of last year.

Distillers Grains, Ethanol, International

Process Optimization Seminar

Chuck Zimmerman

Phibro Process Optimization Seminar

An interactive seminar focused on increasing
ethanol plant process efficiency and profitability.


Domestic Fuel is sponsoring a special seminar being held by Phibro Ethanol Performance Group, Fremont Industries, Fermentis and Novozymes.

With today’s challenging ethanol market, there is nothing more important than maximizing every dollar spent in your operation. The decisions made in your lab on process aids and systems like Enzymes, Yeast, Antimicrobials and Water Treatment are vital to your plant’s short and long term success. A strong bottom line starts with decisions made over very small increments. Employees simply can not receive too much training or exposure to available technology and methods that can strengthen your bottom line. To assist in this effort, four of the industries most trusted suppliers have designed a course focused on maximizing many of the inputs and process techniques you are currently using. Technical staffs from Fremont, Fermentis, Novozymes and Phibro Ethanol Performance Group are offering a limited training course July 29 – 30, 2009 in Minneapolis, MN. Please direct your questions to processoptimization@hotmail.com.

Course Registration Fee
Early Registration $150.00 through June 30, 2009
Registrations July 1 or later, based on availability $200.00
Registration includes all sessions, meals and entertainment! Sample testing and analysis included.

Download registration form (Word doc).
Download Seminar Schedule ((pdf).
Education

Feds Issue First Offshore Wind Energy Leases

John Davis

offshorewindmills2For the first time, the federal government has issued offshore wind leases to explore the potential of the energy source.

The New York Times reports the five leases will be for areas 6 to 18 miles off the New Jersey and Delaware coasts:

Interior Secretary Ken Salazar, who has made offshore wind energy a priority, acknowledged that the United States was playing catch-up to European countries, like Denmark or the Netherlands, which have long focused on alternative energy.

salazar2A variety of local and political hurdles have so far prevented wind farms from being built off American coasts.

“Other nations have been using offshore wind energy for more than a decade,” Mr. Salazar said in a statement. “The technology is proven, effective and available and can create new jobs for Americans while reducing our expensive and dangerous dependence on foreign oil.”

The leases were granted to Bluewater Wind New Jersey Energy; Fishermen’s Energy of New Jersey; Deepwater Wind, and Bluewater Wind Delaware.

Some estimates say that the wind could provide 20 percent of the country’s energy needs by 2030, and offshore wind power generation could play a significant role in that number.

Government, Wind

Mechanics Trained to Fix Hybrids

John Davis

naftcHybrid vehicles are great for the environment, but like any car, they do break down. A training program at the West Virginia University is teaching mechanics how to keep those green vehicles on the road.

WBOY-TV has this story about how 14 automotive instructors have come to Morgantown from schools all over the country to learn at the National Alternative Fuels Training Consortium:

They’re here for the first “train-the-trainer” session, taking part in what many are calling the best course on hybrid cars in the country.

Knowing how to repair electric vehicles is becoming more important than ever before.

“I think what you’ll find,” said course instructor Mark Quarto, “is many of the companies through their portfolio have said anywhere by 2018 to 2010 that the majority if not all of their vehicles will be either hybrid propulsion or electric propulsion or fuel cell.”

This is why this train-the-trainer program at The National Alternative Fuels Training Consortium is vital.

“We know that these hybrid vehicles are going to be the wave of the future,” Quarto explained, “so these instructors are here to train the next generation of technicians to train the next generation of cars.”

Another seminar is scheduled in a few weeks in Wisconsin and another later this year out west. The 40-hour training courses wil help not only the mechanics who will be working on those future cars, but of course, it will be invaluable for those drivers trying to save the Earth one mile at a time.

Miscellaneous

Alt Fuels Being Added to Jet Fuel Specs

John Davis

ataEarlier this month, I told you about how the airlines have been more and more accepting of biofuels (see my posts from June 1 and June 19). Now, it looks like the organization that sets standards for fuels, including jet fuels, is also approving of biofuels for the friendly skies.

This press release from the Air Transport Association of America (ATA), the industry trade organization for the leading U.S. airlines, is praising the ASTM International Aviation Fuels Subcommittee for approving a new specification that allows synthetic fuels to be used in aviation and possibly the approval of blended biofuels for the airlines this fall:

“The action of the ASTM subcommittee is a landmark step for all consumers of jet fuel,” said ATA President and CEO James C. May. “It signals the beginning of a new era for widespread production and use of cleaner, alternative fuels that not only will help the airline industry meet its environmental goals but also will provide airlines with more competitive options for purchasing jet fuel while simultaneously enhancing U.S. energy security.”

The ASTM subcommittee action had two key components: it approved a process for various classes of alternative fuels to be added to the jet fuel specification, while specifically supporting synthetic fuels derived from the Fischer-Tropsch process to be the first alternative included under the specification. Once approved by ASTM, this synthetic fuel can be blended up to 50 percent with conventional, petroleum-derived jet fuel and used by commercial air carriers and private aviation operators, as well as in U.S. military applications.

More testing will need to be done before full ASTM approval.

biofuels

Ethanol Group Pleased with Passage of Climate Bill

Cindy Zimmerman

The American Clean Energy and Security Act has passed the U.S. House of Representatives by a vote of 219 to 212, with 44 Democrats voting against the bill and eight Republicans voting in favor.

Minority Leader John Boehner (R-OH) spent an hour attempting to force his colleagues to read the 300 page amendment to the bill offered at 3 a.m. Friday morning. Republicans offered a simpler substitute to the massive piece of legislation, but it was defeated.

Renewable Fuels Association President and CEO Bob Dinneen issued a statement praising the House for “taking the first important step toward a national policy to reduce carbon emissions.”

Dinneen also noted that the bill was improved by a compromise worked out this week between House Agriculture Committee Chairman Collin Peterson and House Energy and Commerce Committee Chairman Henry Waxman regarding international indirect land use change and its application in penalizing ethanol production in the U.S. Dinneen says the compromise “will allow for the continued growth of America’s biofuels industry and achieve our environmental and energy goals.”

The Senate is now expected to come up with its version of a climate change bill, but some say that may not happen this year.

Environment, Ethanol, Ethanol News, RFA

New RAND Study: Energy Security Benefit Overblown

Joanna Schroeder

mg838As we approach America’s independence day, the “energy security” benefit many organizations and government officials tout  may be overblown, according to a new study conducted by RAND Corporation. The study, “Does Imported Oil Threaten National Security?” evaluated the risks to national security associated with U.S. imports of oil and assessed the costs and benefits of policies to address these risks. The study was sponsored by the Institute for 21st Century Energy, which is affiliated with the U.S. Chamber of Commerce.

The RAND study evaluated several common concerns about U.S. dependence on imported oil, including:

•    the likely economic impact on the U.S. should a major drop in the global supply of oil occur,
•    attempts by oil exporters to manipulate exports to influence the U.S. or other countries in ways that  are harmful to U.S. interests,
•    the role of oil-export earnings in supporting terrorist groups, and
•    the costs of protecting the supply and transit of oil from the Persian Gulf.

The major finding of the study was that an abrupt and extended fall in the global oil supply and resulting higher prices would seriously disrupt U.S. economic activity, no matter how much or how little oil the U.S. imports. In addition, the study found that the U.S. current oil-export embargoes have been unsuccessful in advancing the foreign policy goals of oil exporters.

The study concludes with policy recommendations that should benefit, not harm the country as several of our current and proposed policies do. Click here to read the full report, “Does Imported Oil Threaten National Security?“

Energy, politics, Research

Network to Connect Wind Power to Power Needs

John Davis

Microsoft PowerPoint - 090105 Green Power Express.ppt
A network of power lines is being built that will connect the areas in the Upper Midwest… especially Iowa, Minnesota and the Dakotas… to the areas of the Eastern U.S. that need the power produced.

This press release posted on TradingMarkets.com says that ITC Holdings, Mitsubishi Electric and Mitsubishi Electric Power Products are expanding their efforts to get the network up and running:

Mitsubishi Electric will produce 765kV transformers for use in ITC’s Green Power Express project, a 3,000-mile long network of transmission lines that will move renewable energy from remote areas in the Upper Midwest to major Midwest and East Coast population centers.

In addition, ITC and Mitsubishi Electric Power Products have agreed to work jointly on the development of a 765kV circuit breaker that will go into production by 2011 at Mitsubishi Electric Power Products’s Warrendale, Pennsylvania manufacturing facility.

Jon Jipping, executive vice president and COO of ITC Holdings, said: “ITC has had a successful relationship with Mitsubishi Electric and Mitsubishi Electric Power Products for over five years and is pleased with this opportunity to extend the partnership as ITC continues to grow.

ITC officials say the partnership will help move up the development of the Green Power Express while encouraging American jobs to build the equipment.

Wind

Tough Times for Soy-based Biodiesel

John Davis

In the past couple of years, soybean growers have seen prices for their feedstock skyrocket as oil prices rose as well and motorists looked for alternatives to petroleum-based fuels. But those rising prices for soybeans put a lot of refineries in jeopardy, despite the growing demand for biodiesel.

Add to those issues, a new proposal from the Environmental Protection Agency that would basically shut out soy-based biodiesel from the Renewable Energy Standard, it’s no wonder Iowa Farmer Today has this story on how biodiesel and soybeans could be in for some tough times ahead:

“The biodiesel industry is hurting right now,” says Solon farmer Ed Ulch, treasurer of the National Biodiesel Board and a member of the Iowa Soybean Association board.

That sentiment is echoed by Jon Scharingson, director of marketing for REG (The Renewable Energy Group), which operates the plant in Newton.

“The last two years have been tough on the industry,” Scharingson says.

He explains soybean prices rose, oil prices fell and several federal governmental issues appeared on the horizon during that time. The combination spelled bad news for biodiesel.

Today, many biodiesel plants are shut down. Others run periodically or at less than 100 percent of capacity.

The second important issue in Washington, D.C., is big. It involves the 2007 energy bill and the language regarding “indirect land use.”

The Environmental Protection Agency (EPA) issued a proposed rule in late May and put that proposal up for comment until late July…

Without soy oil, the United States will not be able to meet renewable fuel goals. There simply isn’t enough animal fat and substitute oils available to meet the levels of production included in those goals.

The article concludes by saying biodiesel producers, large and small, active and idle alike, are just waiting for the change that will put them back on top of the game.

Biodiesel