ACE Conference 2026

Study Examines Ethanol Policy Options

Cindy Zimmerman

A new study done by the University of Missouri’s Food and Agricultural Policy Research Institute (FAPRI) looked at the impact of eleven different policy scenarios for ethanol on the market, food and ethanol prices, and overall farm income.

FAPRIAmong the options considered was increasing the allowable blend of ethanol in gasoline to 15 percent, which the study found would result in slightly higher corn and ethanol prices and an overall increase in net farm income. “Allowing 15% ethanol blends increases ethanol use and average corn prices, but the effects are modest,” the report states. “Such intermediate blends expand the potential ethanol market and raise corn prices by an average of 1.1%.”

The study also found that allowing the ethanol tax credit or ethanol tariff to expire would likely reduce domestic ethanol production and corn prices, as would reducing the Renewable Fuels Standard.

Possibly the most important conclusion of the study is that basically any model that predicts price and production behavior based on policy is dependent on other factors that cannot be controlled. “The relative importance of different ethanol support policies depends on the price of oil, the weather, and other market circumstances,” it states.

Ethanol

The Great Gatsby Goes Green

Joanna Schroeder

Hollywood had a green makeover last week when the first all-solar community, The Gatsby Hollywood, was unveiled. This community of 34 brownstones is the largest all green, all -solar, smart home community in the country and not only features renewable energy but was built using renewable materials.

According to Dan Thompson, the CEO of MasterCraft Homes Group, who designed and built the eco-friendly community, each home will see an energy savings of 50 percent and a water savings of 60 percent.

The community was built as “adaptive use” project. This means a site is found that has abandoned buildings which are torn down and the new buildings, in this case, homes, are erected on the site. MasterCraft Homes is planning on building additional green communities in urban infill areas in LA and will never build on virgin land. This property was also unique in that it is the home of the fabled Orchard Gables Cottage which dates back to Abe Lincoln’s time. The company is working with a restoration expert to refurbish the cottage and it will be re-dedicated as a museum later this year. Thompson noted that having an urban infill area with a historic building is rare and will probably never happen again.

One of the criticisms of green building is that the average person can’t afford to purchase a green home. But in the case of a Gatsby house, this is not the case. Thompson explained that by building the entire community with solar energy and green technologies, they can keep the costs competitive. They are not charging a premium for their homes because they want their communities to be affordable. A Gatsby brownstone can be purchased starting at $750,000. This is actually less expensive then the price of a typical Hollywood bungalow. For those of us who don’t live in Cali, this price equates to about $250,000 in the Midwest.

At this time, Thompson said they don’t plan on building outside of California but with the growing need for green building expertise, he just may be expanding sooner rather than never.

Environment, Solar

Two Resources to Learn About New Wind Technologies

Joanna Schroeder

logo1Infocast is offering two ways to learn more about the advancements in wind technology. The Wind Power Development Tutorial will be held July 8-10, 2009 in San Diego. It will offer independent developers, utilities, munis, co-ops, and land owners the essential tools and strategic insights for success.

In addition, the Tutorial will help existing developers fine tune their plans and projects, while investors, partners and financiers will gain insight into the inner dynamics of wind business models. This will enable them to improve their due diligence, underwriting and valuation analysis. Learn more by visiting www.infocastinc.com/winddev09

The second opportunity to learn more about the wind power technology is through the Midwestern Wind Power Development & Finance Summit on July 27-29, 2009 in Chicago, Illinois. This event is geared to regulators, utility renewable energy policy and planning executives, developers and financiers where they will discuss how to develop and finance renewable energy sources effectively, efficiently, and quickly. In particular, participants will not only learn how to clear local permitting and transmission interconnection hurdles, but also how to structure projects to take advantage of renewable energy provisions in the stimulus bill. Learn more by visiting www.infocastinc.com/mwrenewables09

conferences

Ethanol: Where is the Industry Heading?

Joanna Schroeder

logo_02What is the ethanol industry’s financial future? This question will be asked and answered by three of the most influential ethanol organizations including Growth Energy, ACE and RFA, during the 5th Annual Biofuels Financial Conference. The conference, sponsored by Christianson & Associates, PLLP,  will focus on the financial challenges and opportunities for the biofuels industry. The conference is being held in Minneapolis, Minn. on June 24 – 25, 2009.

“This is a challenging time for the ethanol industry and we must all learn how to manage during periods of volatility,” said John Christianson, Partner, Christianson & Associates, PLLP. “This conference will educate participants about the current financial challenges and opportunities facing our industry, as well as teach them how to more effectively manage their businesses during financially challenging times.”

Tom Buis, CEO of Growth Energy, Brian Jennings, Executive Director of the American Coalition for Ethanol (ACE) and Jim Redding, Vice President Industry Relations for the Renewable Fuels Association (RFA) will all take the stage and discuss how the current financial landscape is affecting the ethanol industry today and tomorrow. Participants will also learn about commodity risk management, leadership best practices and hear technical and industry updates.

Here are the three reasons why you cannot miss the 5th Annual Biofuels Financial Conference.
1) Obtaining a lender’s perspective including the importance of key financial ratings of liquidity, profitability and leverage.
2) Designing an appropriate internal control- integrated framework-to best govern and mange your company.
3) Developing the risk management tools to implement effective plans to minimize profit exposure from the volatility of commodity prices.

To see the full agenda and to register, visit www.christiansoncpa.com/biofuelsconference.com.

conferences, Ethanol

Ethanol Bob in Brazil

Cindy Zimmerman

Ethanol BobRenewable Fuels Association president and CEO Bob Dinneen is in Brazil for the Ethanol Summit 2009 in Sao Paulo and is providing an up-to-the-minute account of his visit via Twitter.

Among Dinneen’s comments so far since he arrived in Brazil early this morning: “Just passed a fuel station. Alcohol (ethanol) was 1.09, gasoline was 2.29. Units are litres and Rials, but you get the picture!” and “I find myself looking for flex fuel labels on the cars. They’re all over. A Honda Civic flex, a Toyota Corolla flex. Huh. Why not in the US?”

Ethanol SummitFormer President Bill Clinton is among the speakers today at the summit, which is organized by the Brazilian Sugarcane Industry Association (UNICA) and is one of the most important gatherings focused on biofuels in the world. More than 90 speakers from all continents are confirmed for the Summit, which will feature 25 panels in five theme-specific venues, three publication launches and six plenary sessions. Dinneen will be among the panelists during a Wednesday session on Ethanol: Global vs. Domestic Market. A panel today on second generation ethanol includes representatives from POET, Novozymes, Monsanto and BP and a Food Versus Fuel panel on Wednesday will feature National Corn Growers Association chairman Ron Litterer.

Ethanol, Ethanol News, International, RFA

Minnesota On Target to Meet Biodiesel Mandate Goals

John Davis

Earlier this week, we told you how Washington state was going to fall short on its goal using 20 percent biofuels in all state vehicles. But there’s better news from the Midwest.

mn_map1According to the Redwood Falls (MN) Gazette, Minnesota is on target of meeting its own lofty goal of having all diesel sold in the state to be a 20 percent blend by the year 2015. At the beginning of this month, the state jumped from a 2 percent to a 5 percent biodiesel blend. And the biodiesel industry in the state seems to be ready for the next two steps: a 10 percent blend in 2012 and 20 percent in 2015:

“We will easily be able to meet the demands on the in-creased production for this step up to five percent,” said Chuck Neece of Farmers Union Industries. “In 2012, that will increase to 10 percent biodiesel, which means there will need to be about 80 million gallons of bio-diesel to blend.

“Half of that, 40 million gallons, would have to come from in-state production.”

Between the biodiesel plant in Brewster and the plant near Redwood Falls operated via Farmers Union Industries, state production is currently at 33-35 million gallons.

So, the need would only have to increase another five million gallons to ensure the demands for 2012, ex-plained Neece.

There are some “safety valves” built into the targets, such as a flexible approval process, involving the legislature, biodiesel producers and other stakeholders, for each step along the way to make sure the state is not committed to something it can’t meet due to unforeseen circumstances down the road. But, for now, it looks likes everything so far is so good.

Biodiesel

Exxon CEO: Alt Fuels Help Satisfy Global Energy Need

John Davis

While the chief of Exxon Mobil believes the U.S. demand for gasoline has peaked, he thinks the global demand for gasoline will continue to grow. And Rex Tillerson thinks that alternative fuels will help meet that growing demand.

This story in the Dallas Morning News says Tillerson made the pitch for investing more in renewable energy during the company’s annual shareholder meeting this week in Dallas:

“Half a billion people have moved out of abject poverty to a minimum acceptable standard of existence, and that’s due to energy,” Tillerson said to the crowd of investors gathered at the Meyerson Symphony Center, adding that the world will continue to rely on fossil fuels for decades to come.

“Our approach to alternative energy in the near term is alternative ways to consume fossil fuels” more efficiently, he said.

The Irving oil giant projects that demand for gasoline in the U.S. will decline, as it has in Europe. Demand in China, on the other hand, is likely to triple by 2030, according to Exxon. Tillerson said demand in India and the rest of Asia will also grow.

“That’s where the real rapid growth in fuels is,” he said.

A shareholder proposal to invest in renewable energy failed to win this time, but it does show that some in the oil business are starting to see the end of burning hydrocarbons and want to make sure they’re on the train for the next energy development… and indicators point to that being in renewable fuels.

biofuels

Interior Funds Efforts to Turn Fallen Trees into Biofuels

John Davis

interiorBurning deadfalls and brush in your stove or in your car might be a better option than having that same forest waste burn down your home.

One of the issues that the national forests and park lands run into each year is what to do with the fallen trees and underbrush that contribute to forest fires that threaten surrounding communities and the forest itself. While a certain amount of that material is needed to replenish the soil in the forests, too much of it leads to devastating forest fires (although I’m sure there’s another line of debate on how devastating or for whom).

Biomass Magazine reports the U.S. Department of Interior is investing $15 million of the stimulus bill into 55 projects in 12 states to reduce those hazardous fuels on federal lands that will protect at-risk communities while supporting local efforts to produce fuel (and jobs) from the biomass gathered:

The final selection criteria ensured project planning and environmental compliance work was complete or substantially complete and that projects have the potential to provide additional economic benefits to support local or regional employment through post-treatment use of biomass in wood products or power generation.

California and its large amount of trees is getting the biggest amount of funding at $3.3 million. Not surprisingly, Montana and Arizona, states with large forests as well, picked up the next biggest amounts at $2 million and $1.3 million, respectively.

You can see the complete list of projects and awards by state at this Interior Web site.

biofuels, biomass, Government

Toledo to Test Cellulosic Ethanol

Cindy Zimmerman

The city of Toledo, Ohio is testing cellulosic ethanol in city vehicles this summer.

In partnership with Virginia-based SuGanit Systems, the city will test the company’s formula for ethanol from biomass feedstock on three city fleet vehicles. The tests will measure emissions, miles per gallon and cost differentials, among other factors, according to city officials.

The Toledo Free Press reports that the biofuel will be used as a 10 percent mix with gasoline for the pilot program with city vehicles. During a press conference in Toledo this week, SuGanit Systems founder Praveen Paripati said the biomass ethanol product was being developed from research being conducted at the University of Toledo.

Cellulosic, Ethanol, Research

Planting Switchgrass for Cellulosic Ethanol

Cindy Zimmerman

Some farmers in Tennessee are testing out the first switchgrass seed varieties specifically developed for biofuels production.

Their goal is to learn first-hand how to manage this new crop, and then use that knowledge to facilitate the development of the bioenergy industry in Tennessee. Tennessee growers Tony and Tim Brannon – pictured here getting some planting done last week – are part of the 25Farmer Network, a group evaluating the potential of alternative crops in western Tennessee organized by the Memphis Bioworks Foundation.

Energy crop company Ceres is developing many of the varieties being tested. Company officials believe switchgrass can produce substantially more biomass and higher yields than many believe.

The company reports results from national field trials have shown average biomass yields among switchgrass seed varieties tested last season were as much as 50% more than the government’s projected yields for 2022. The highest yield was reported in California, where a Ceres experimental variety produced 19 tons per acre. Ceres switchgrass product manager Cory Christensen says this result “demonstrates the genetic potential of switchgrass grown under favorable conditions” and he predicts that they will continue to increase average yields in the future.

Cellulosic, Ethanol, Research