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

Ethanol Report on Miami E85

Cindy Zimmerman

Ethanol Report PodcastSouth Florida motorists who drive flex fuel vehicles now have at least 12 stations where they can fill up with E85 fuel. The Renewable Fuels Association joined Urbieta Oil in celebrating the grand opening of the nation’s 2000th E85 fueling station this week in Davie, Florida.

This edition of “The Ethanol Report” includes comments from RFA Director of Market Development Robert White, Urbieta Oil president Edwin Flores, and Florida Commissioner of Agriculture Charles Bronson.

You can listen to “The Ethanol Report” on-line here:
[audio:http://www.zimmcomm.biz/rfa/ethanol-report-33.mp3]

Download audio for broadcast use here: Ethanol Report on Miami E85

Or you can subscribe to this podcast by following this link.

Audio, E85, Ethanol, Ethanol News, Ethanol Report, RFA

National Wind Wins Minnesota Environmental Award

Joanna Schroeder

nationalwindlogo1 National Wind, LLC, based in Minneapolis, Minnesota, has received the 2009 Minnesota Environmental Initiative (MEI) Green Business and Environmental Management Award. The award recognizes National Wind’s for partnering with communities to build utility-scale wind farms. MEI is a nonprofit organization whose mission is to build partnerships that create solutions to environmental problems throughout Minnesota.

MEI’s Executive Director, Mike Harley congratulated National Wind. “National Wind’s partnerships with communities are excellent examples of green business developments that help preserve the environment for future generations. Their grassroots wind energy projects start with local communities. By creating opportunities for community members to influence the development process and own a stake in the project, National Wind engenders broad support for clean energy and environmental stewardship.”

National Wind is currently developing twelve families of wind projects across the Midwest and Plains States. The company has more than 1000 landowner partners and over 1300 megawatts (MW) of locally-owned wind projects in development or operation in Minnesota alone. The key component to their success is that they offer joint ownership with local landowners to develop utility-scale wind farms. This enables local communities to have a positive financial stake in their investment in renewable energy.

Leon Steinberg, the CEO of National Wind was on had to recieve the award along with sevearl members of his team. “We have accepted this award on behalf of our 50 employees, our 450 rural farmer-partners and the thousands of landowners that will participate in our projects. Without all of their involvement, this award would not be possible. We want to acknowledge MEI’s success in building consensus to tackle important environmental issues. We also want to thank the utility sponsors of the 2009 awards, namely Great River Energy, Xcel Energy and Minnesota Power.”

Company Announcement, Wind

Vegawatt Generator Turns Grease Directly Into Power

John Davis

vegawatt-finz1A six-foot tall box behind a restaurant in Massachusetts is a solution to two problems: what to do with leftover cooking oil and how to power the fryers that produce all that grease in the first place.

This article from Popular Science says the Vegawatt Power System that turns used cooking oil into an energy source for Finz restaurant in Dedham, Massachusetts has been picked as one of the magazine’s Invention Awards:

Engineer James Peret’s Vegawatt is the first all-in-one device that processes grease to continuously provide a building with electricity and hot water, heralding a significant change in alternative-fuel applications. “It’s a brilliant idea,” says Josh Tickell, author of Biodiesel America. “A waste stream to an energy source, with no intermediary.”

vegawattLast December, after a year of 80-hour weeks on the development, Peret, 33, installed the first Vegawatt at Finz, a joint that offers loads of fried seafood. With patents still pending, he’s reluctant to give specifics on its inner workings, but it begins with staff members pouring in 10 to 12 gallons of used deep-fryer oil each day. Before going into the Vegawatt’s generator, the bread-crumb-filled muck is deposited into a reservoir and undergoes a multi-stage cleaning, treatment and filtration process. At this stage, the oil is prepared for combustion with a method Peret devised that draws heat from the exhaust system. After that, the processed grease moves into a tank that feeds the modified 15-horsepower diesel generator. Heat from the Vegawatt’s engine coolant is used to warm the water in the building’s pipes, further reducing the restaurant’s energy needs.

The Vegawatt goes through about 80 gallons of grease a week and puts out five kilowatts of energy an hour. That could save restaurants $1,000 a month in energy costs. You can find out more by going to the Vegawatt Web site.

Biodiesel