More Corn Could Support Higher Ethanol Blend Rate

Cindy Zimmerman

The combination of more corn planted this year than expected and more corn stocks could mean a better chance of the ethanol blend rate being increased.

afbfAccording to Terry Francl, senior economist with the American Farm Bureau Federation, “For the 2009/2010, the greater availability of corn supplies makes it more likely that the EPA will increase the ethanol blend rate from the current 10 percent to 12 percent or 13 percent, effective Jan. 1, 2010,” Francl said. “That will in turn utilize some 400 to 500 million more bushels of corn in the 2009/2010 crop year and reduce corn ending stocks by 300 to 400 million bushels. It is also important to remember that about one-third of the corn that is utilized as ethanol comes back as distillers dried grain, which replaces corn and some protein meal.”

USDA’s planted acreage report out this week estimated the second largest corn crop since 1946 at 87.0 million acres, and corn stocks were pegged at 4.27 billion bushels as of June 1, up 6 percent from June 1 of last year.

Ethanol, Farming

Biodiesel Board Rallies Troops in RFS-2 Fight

John Davis

rfs2bannerIn a move to fight a proposed change that would basically shut out soy-based biodiesel… the bulk of the nation’s biodiesel production… from the Renewable Fuels Standard, the National Biodiesel Board has launched a Web site to give people the tools to make comments on the Environmental Protection Agency’s proposal.

The RFS2 Action Center gives those who want to stop the change examples of comments, where and how to send the comments, and this letter from NBB CEO Joe Jobe himself:

joe-jobethumbnailDear Biodiesel Stakeholder:

Today the National Biodiesel Board is launching our grassroots response to the Environmental Protection Agency’s (EPA) proposed rule on the Renewable Fuel Standard (RFS-2). We are calling on you and all supporters of clean, renewable energy to join us in urging the EPA to implement a workable RFS-2 program…

The methodology employed by the EPA to determine biodiesel’s GHG emission profile under the RFS-2 program is based on questionable inputs and dubious assumptions about international land use changes that assign future carbon emissions to U.S. biodiesel resulting from hypothetical land clearing on other continents that have nothing to do with U.S. biodiesel production or use…

We need as many biodiesel supporters as possible to submit consistent comments. (update: the deadline for public comments has been extended to September 25)…

The future of the nation’s energy policy and biodiesel’s role in it is now at a critical point. Please join us in this landmark effort to help lead the nation forward toward a more sustainable, renewable, and prosperous future.

Sincerely,

Joe Jobe, CEO
National Biodiesel Board

Biodiesel, NBB

Obama Comments on Ethanol During Rural Tour Kickoff

Cindy Zimmerman

Obama in cornThe Obama administration embarked on a National Rural Tour this week that will include discussions about green jobs, a new energy economy, climate change and renewable energies.

During an interview for the National Association of Farm Broadcasting with Michelle Rook of WNAX, Yankton, SD, Obama was asked about the role renewable fuels will play in the future for rural America. “Obviously, I come from a farm state – Illinois – and ethanol has been a big boon for a lot of rural communities,” the president said. “But we also are recognizing the key for us is to move into the next generation of biofuels, how can we use wood chips and refuse and switchgrass and how can we improve the efficiency of first generation biofuels. Farmers are going to be critical to that entire process.”

“We want to be able to compete with countries like Brazil that now are running basically their entire automobile fleet on biofuels,” he continued. “If Brazil can do it, there’s no reason why America can’t do it.”

Obama also commented on the climate change bill passed by the U.S. House of Representatives last week, saying that the legislation provides “a whole host of opportunities for rural communities to profit even as they are helping to achieve America’s energy independence.”

The first stop on the administration’s rural road trip was in Wattsburg, Pennsylvania on Wednesday where the topic was rural broadband service. Future dates where energy will be the focus include July 18 in Ringgold, Virginia; August 12 in Bethel, Arkansas; and August 16 in Zanesville, Ohio.

Listen to Obama’s ethanol and climate bill comments here:

Audio, biofuels, Ethanol, Farming, Government

Solar, Biofuels Lead March Back Into Green Investment

John Davis

greentechmediaInvestors are getting back into green investing in a big way, and venture capital into solar and biofuels are two of the big drivers.

An excerpt from a Greentech Media report posted on MarketWatch.com says that investors put $1.2 billion into 85 deals during the past quarter… compared to just $836 million in 59 deals during the first quarter of this year.

“The recent quarter’s balanced distribution of sectors that attracted capital underscores cleantech’s breadth and diversity of opportunity, one of the key drivers behind why cleantech remains an enduring area,” said Ira Ehrenpreis, General Partner at cleantech VC, Technology Partners.

Solar power was once again the leading investment segment at more than $330 million. Unlike previous quarters – the second quarter saw a much more balanced distribution across the various sectors with a marked increase in automotive (more than $202 million) and energy storage (more than $180 million) [with biofuels scoring $195 million and wind & geothermal producing more than $22 million in investments].

One of the drivers for steady second quarter venture investment was the promise of stimulus monies offering startup investors a non-dilutive funding source. Meanwhile, early-stage and late-stage investments dominated, while mid-stage funding was harder to come by, and the average round sizes were slightly smaller. There were no giant $100 million+ solar or biofuel rounds as in 2008.

Greentech analysts believe that this year will be one of consolidation and development, but green sector investments will really take off in 2010 and 2011.

biofuels, Solar

Growth Energy Recruiting eTeam Members

Cindy Zimmerman

Growth Energy is building a team from the grassroots to speak up for the ethanol industry.

CEO Tom Buis says they created the eTeam to be “an army of thousands of ethanol consumers and supporters who are willing to take action to spread the message that ethanol is a clean, green renewable fuel available today.”

Buis says they already have 1200 eTeam members signed up who are armed with factual ethanol information to comment on blog posts, write letters to the editor, speak to local organizations, participate in community events, and contact their state and national lawmakers about policy issues.

“I’ve found that there are so many advocates out there that if they would get energized and participate, we would be winning all these debates in the media and in the halls of Congress and in the statehouses,” said Buis. “Now’s the time we have to stand up in a proactive manner and go out and tell that good story. Tell people that we’re a low carbon fuel, we emit less greenhouse gases than gasoline, tell them we create jobs and we are helping our nation address a problem that has existed for the past 35 years, that literally our economy and our nation are held over a barrel – an oil barrel.”

Growth Energy is reaching out to people in rural communities where ethanol has created jobs, to farmers, and to consumers who believe in the benefits of ethanol for the economy, the environment and energy security. Buis urges people to sign up for the eTeam by going to GrowthEnergy.org and clicking on the Get Involved button.

Sign up for the eTeam here.

Listen to or download an interview with Tom Buis about the eTeam here:

Education, Ethanol, Growth Energy

WI Offers Ethanol Blender Pumps

wi_bioindustryThe Wisconsin Bio Industry Alliance (WBIA) hosted a media event today to discuss the importance of increasing the number of blender pumps in Wisconsin. Working in partnership with representatives from the Renewable Fuels Association, the American Coalition for Ethanol, Growth Energy, the Wisconsin Corn Growers Association and the American Lung Association, Wisconsin’s bio fuel producers are drawing attention to the benefits of increased ethanol use in Wisconsin.

While there are more than 100 locations across the state where consumers can purchase gasoline blended with up to 85 percent ethanol, there are fewer than 30 locations across Wisconsin where consumers have the choice to purchase fuel blended with different levels of ethanol. Blender pumps allow consumers to determine what percentage of gasoline and ethanol they would like to purchase for their vehicle. When visiting the fueling station, consumers are able to select a variety of fuels, including E10, E20, or E85.

“Consumers should be given a choice. Whether you want a gasoline blended with 10 percent ethanol for your boat or small engine, or you chose to purchase ethanol blended with 20 percent or 85 percent ethanol for your flex fuel vehicle, blender pumps give you those options,” said Joshua Morby, Executive Director of the WBIA. “We’re working closely with our partners nationally to increase the number of blender pumps not only in Wisconsin but throughout the United States.”

ACE, blends, E85, Ethanol, Ethanol News, Growth Energy, RFA

Franken Says He’s Pro-Ethanol

Cindy Zimmerman

The newest member of the U.S. Senate says he is pro-ethanol. In an interview with MinnPost.com today, Senator-elect Al Franken (D-MN) expressed his support for ethanol.

“What we’re talking about here is the science of how ethanol affects our carbon footprint,” Franken said. “The science to me tells me it helps. I’ve looked at this a lot, and it seems to me that ethanol already helps our carbon footprint and it’s only getting more efficient in the way it’s produced. Corn ethanol is a step on the way to cellulosic ethanol, which is also going to benefit Minnesota. I’m in the pro-ethanol camp.”

Franken’s campaign website gives his views on renewable energy and the need for America to reduce its dependence on foreign oil.

I think we need a new “Apollo project” – this time to fundamentally change our energy policy and end our reliance on foreign oil.

The natural resources we have right here in Minnesota – not just corn and soybeans and biomass and wind, but innovation and creativity and brainpower – can lead to amazing breakthroughs if we commit to this undertaking.

This “Apollo project” should provide financial support for research into new forms of renewable energy and development of currently-identified sources to make them more efficient. Of course I’m talking about corn ethanol. But I’m also talking about cellulosic ethanol and other biofuels. I’m talking about solar power. And, especially here in Minnesota, I’m talking about wind power. We live in a windy state!

Energy, Ethanol, Government, politics

5 Reasons Why the Climate Bill Will Ruin Your Life

Joanna Schroeder

This is the car you will drive if the Climate Bill passes the Senate.

This is the car you will drive if the Climate Bill passes the Senate.

A new Rasmussen Reports national telephone survey shows that 42 percent of Americans oppose the climate bill that passed the House last week because respondents believe the bill will hurt the economy. Well, the more I dig into the nuances of the proposed climate bill, the more I realize that this bill will do more damage than good.

Here are five reasons why the climate bill will ruin your life:

1) You won’t be able to sell your house if it doesn’t pass an energy audit. If your house fails, you’ll have to reduce the price of the house or update the house until you can pass the audit. Here’s an incentive that’s sure to rejuvenate the housing market.

2) The bill would require that all buildings built in the U.S. conform to meet California Building Code Standards. Who needs an affordable house anyway?

3) Your energy bills and other expenses will be higher. The republicans are complaining that the bill would raise yearly electricity bills $175 per year by 2020 but some experts say that an average family’s expenses will go up between $1,200 to $3,000 per year. Break out the summer fans and winter sweaters and blankets.

4) CRAP and RAID – also known as cap and trade.  The legislation mandates a 17 percent cut in greenhouse gas emissions by 2020 and an 83 percent cut by 2050. These cuts will be “enforced” in part through a cap and trade system which puts a price on CO2 emissions. With a program this well thought out, how could it not work?

5) The government will tell you what kind of car you can drive. No more gas guzzling SUVs people. Start peddling – you need the exercise anyway.

Now, I could be wrong. The Republican filibuster on CSPAN last Friday nearly put me in a coma, but seriously people, this bill needs an overhaul.

Commentary, Energy, Environment, Legislation

EPA Extends RFS2 Comment Period

Cindy Zimmerman

The Environmental Protection Agency plans to extend the public comment period for the proposed rule on the Renewable Fuel Standard for an additional 60 days until September 25, 2009. A public notice dated Tuesday was posted on scribd.com and may be published in the Federal Register this week. However, no notice has yet been posted on the EPA website and the agency has not sent out a news release about the action.

EPASenator Chuck Grassley (R-IA) expressed concerns about the extension during his weekly telephone press conference with agricultural reporters. “There’s no doubt that the issue that EPA is dealing with is very complex, so I suppose we ought to have some appreciation for the extra time they’re taking,” Grassley said. “However, the delays threaten the viability of the biodiesel industry which needs the rule to set the level that must be used in 2010 for the RFS. It’s important that the rule gets finished to provide market certainty because biodiesel is not very good shape.”

The National Biodiesel Board (NBB) also expressed concern about the extension, which will mean a delay in implementation of the rule. In a statement, NBB officials said, “It is important to note that RFS-2 was supposed to be in place at the beginning of this year, and extension of the comment period could further delay the implementation of the program, This will provide additional hardship to the U.S. biodiesel industry.”

The ethanol industry has not yet released any official comment on the notice of extension.

Biodiesel, Ethanol, Government

Free Webinar: Maximizing Ethanol Plant Yield

Joanna Schroeder

nzlogoMiss the Fuel Ethanol Workshop this year? Well don’t fret. You can still tap into all the information that was discussed during the conference. Novozymes is hosting a FREE webinar called, “The quest for maximizing ethanol plant yield” featuring Mitchell Marine, Associate Scientist with Novozymes.

The webinar will discuss:

  • – What is yield?
  • – Carbon balance model
  • – Practical model – with real figures
  • – Final thoughts

This 1-hour webinar will be held on Wednesday, July 8th at 1 pm Eastern Time. You can view the invitation and register by clicking here.

Ethanol, Webinar