Show Me Ethanol Raises Funds to Stay Alive

showme_ethanolAlthough the ethanol plant said it needed $10 million to stay in business just four months ago, Show Me Ethanol in Carrollton, Mo. has reached a loan agreement and will afloat after raising $5.9 million from shareholders.

The group that financed the construction of their 55 million gallon per year plant, FCS Financial, formed another agreement with the ethanol plant. Show Me owed its biggest shareholder, Ray-Carroll Grain Growers of Carrollton, $15.5 million on forward purchase contracts. Ray-Carroll agreed to cancel $2 million of that debt, accept a $1.5 million payment and convert the remaining $12 million into a promissory note. Show Me was able to count the $2 million in debt cancellation as part of the $5.9 million in new capital.

Show Me Ethanol posted a net loss of $18.98 million just two weeks ago, including a $14.1 million loss on forward contracts to purchase corn.

Miscellaneous

Univ. of GA Partners with Ceres on Switchgrass Study

ceresThe University of Georgia will soon be collaborating with Ceres, Inc. to study high yielding switchgrass techniquest. The crop can yield 6 to 10 dry tons in the Southeast, is considered an ideal product for biofuels.

switchgrass“This project allows us to expand our internal and collaborative plant breeding activities in a region where we believe the industry will have a strong presence,” said Ceres plant breeding director Jeff Gwyn, Ph.D. “There’s a lot of headroom for improvement and I’m confident that working together we can continue to drive up yields at a robust pace,” he said.

A press release from Ceres notes that plant breeders, agronomists, support scientists and the Noble Foundation will collaborate on this project to develop improved seed varieties.

In December, Ceres launched the first switchgrass and sorghum varieties developed for bioenergy, which are sold under the company’s Blade Energy Crops . Ceres has established the largest field-trial network for dedicated energy crops in the United States, including more than a dozen leading universities and institutions.

Cellulosic, Ethanol

Has Gasoline Consumption Peaked?

Joanna Schroeder

The oil loving Wall Street Journal (WSJ) published an article today about the “peak of gasoline”.  Many analysts are predicting that with the rise in biofuels production, fuel economy and gasoline prices (although they are holding steady around $2.00 per gallon on average) and the current depressed state of the economy, we’ve seen “peak” gasoline use, at least in the U.S.pumping-gas3

According to information released by the U.S. Energy Information Administration (EIA), drivers pumped 371.2 million gallons of non-ethanol gas every day in 2007. EIA anticipates a 6.9 percent decrease in 2009 to 345.7 million gallons, citing reduced gasoline demand and increased use of ethanol blends. Although some sources report that gasoline use today is higher than last summer, the EIA predicts that future gasonline demand will never exceed 2007 levels.

In addition, WSJ reports that, “Demand for all petroleum-based transportation fuels — gasoline, diesel and jet fuel — fell 7.1% last year, according to the EIA. This is the steepest one-year decline since at least 1950, as far back as the federal government has reliable data.”

This is great news for ethanol producers, especially as there are an estimated 300 million gallons of cellulosic ethanol ready and waiting to enter the fuel market. The historical barriers to an increased market for ethanol have been lack of infrastructure for E85 and mid-level blends and the need to raise the ethanol blend wall. Last month the ethanol industry joined together to file an E15 waiver, which is currently under EPA review and there is talk about the possiblity of biofuels infrasture funding from the federal government.

In the meantime, it appears that Big Oil is taking the decrease in gasoline production to heart and is activiely pursuing entry into the biofuels market.

Cellulosic, Ethanol, Miscellaneous, transportation

Verenium Introduces Veretase

Joanna Schroeder

Verenium Corporation today announced a new enzyme for the food and beverage industry called Veretase.  This enzyme was pic_global_header_logo4developed for the liquefaction of starch-based mashes and slurries specifically for use in food and beverage applications. The enzyme improves saccharification and fermentation efficiency and consistency.

“Verenium is pleased to introduce this unique enzyme specifically designed to improve the economics and efficiency in the sweetener and beverage alcohol production market,” said Janet Roemer, Verenium’s Executive Vice President, Specialty Enzymes Business. “Veretase will offer customers greater operational flexibility in the plant reducing processing costs considerably.”

The company also produces specialty enzymes for the cellulosic biofuels market and is currently engaged in a joint venture with BP to develop and bring to cellulosic ethanol to market.

Cellulosic, Company Announcement, Ethanol

Valero Invests in Biofuels Company Terrabon

Joanna Schroeder

valerorenewables_logoBP has been marketing itself as “Beyond Petroleum” for several years now but it appears that Valero is vying for the top spot in “green energy”. Valero has now invested in Terrabon, a company that is developing technology to produce “green” gasoline through the conversion of trash from landfills to energy. Terrabon’s main technology for biofuels is MixAlco, an advanced bio-refining technology that converts inexpensive, non-food biomass into a “biocrude” that is then converted into chemicals and fuels such as ethanol and gasoline.

Just last month, Valero  became the largest player in ethanol ownership with its purchase of seven VeraSun Energy plants. Last year the company invested in two cellulosic companies Solix, a Fort Collins, Colorado-based company that makes biofuels from algae, and this past January, invested in ZeaChem, a Lakewood, Colorado-based company also using biomass to produce cellulosic ethanol.

Speculation about the affects of Valero’s major entry into the biofuels market is rampant. InfoCast recently hosted a Webinar, “Who Will Benefit from the Biofuel Industry’s Current Distress?” that in part discussed the industry impact of Valero’s ownership of ethanol plants. But the question is much broader than Valero’s impact. The bigger question is which of the seven sisters (Big Oil) will be next to enter the biofuels marketplace? Shell is already invested in cellulosic ethanol and Marathon has owenership in several ethanol plants. I’m not placing my bet on ExxonMobil.

Audio, Cellulosic, Ethanol

Interior Secretary: Wind Could Replace Coal

John Davis

salazar2Wind turbines churning off the East Coast have the potential to replace nearly all of the coal-fired power plants. That bold pronouncement comes from U.S. Secretary of the Interior Ken Salazar during a recent public hearing in Atlantic City, New Jersey.

EnvironmentalLeader.com has details:

Salazar said at the public hearing that wind resources along the East Coast can generate 1 million megawatts (MW) of power, although he could not estimate how many windmills might be needed to generate this amount of power, according to the AP report. This is equivalent to 3,000 medium-sized coal-fired power plants, or nearly five times the number of coal plants now operating in the United States, according to the Energy Department.

Salazar is hosting four regional public meetings in April to discuss the future of offshore energy development. He also said in Atlantic City that offshore energy production might not be limited to wind power.

Salazar also told participants at a recent summit meeting of 25X’25 America’s Energy Future that U.S. offshore areas hold enormous potential for wind energy development in all coastal metropolitan centers, and the wind potential off the coasts of the lower 48 states could exceed electricity demand in the U.S.

According to the National Renewable Energy Lab (NREL), there’s already more than 1,000 gigawatts (GW) of potential wind power off the East Coast with a total of more than 2,000 megawatts of offshore wind projects currently proposed in this country.

Wind

Indonesia Looks to US Firm for Biodiesel Equipment

John Davis

srsengineering1While the biodiesel production business has been growing in the U.S., it has also grown in popularity overseas, especially in Southeast Asia. That has led a group representing commerce interests in Indonesia to visit a Southern California biodiesel equipment manufacturer.

This article from Biodiesel Magazine says SRS Engineering Corp. is at the center of potential trade agreements between the two countries:

Discussions were made regarding the feasibility of a biodiesel plant being erected in Indonesia, along with the possibility of the exportation of palm oil to the U.S., as Indonesia is now the largest producer of palm oil in the world.

The delegates visited a few companies throughout Southern California looking to develop partnerships with companies like SRS Engineering that could eventually evolve into international trade agreements. With SRS Engineering being a biodiesel equipment manufacturing facility and Indonesia being the largest producer of palm oil in the world, there was an obvious business relationship to be had.

“I was very impressed with the Indonesian delegates and their desire to create strong trade agreements between the two countries,” said Clayton Hawranik, President/CEO of SRS Engineering, “there seemed to be an obvious connection with what we do in the biodiesel industry and the Republic of Indonesia being the number one producer and exporter of palm oil. Our brief meeting uncovered a wealth of opportunities between our countries”

We’ll have to see what some of the commodity groups have to say about the potential of foreign palm oil replacing American feedstocks, but it’s pretty cool that there’s a growing market for U.S. know-how overseas.

Biodiesel, International

Biodiesel, Solar Tops in Lexus Eco Challenge

John Davis

lexusecochallengeTwo teams of high school students have taken top honors in the Lexus Eco Challenge, sponsored by book mega-supplier, Scholastic.

About 50 teams of teens took part in the national environmental contest with a group from Thornbridge High School in the Chicago suburb of Dolton and another group from Plantation, Florida (just north of Miami) picking up the top $50,000 prize each. From the Scholastic Lexus Eco Challenge Web site:

thornridgebiodieselThornbridge BioDiesel, Illinois
Team: Garrick, Darryl, Terry, Lamar, Tramel, Jay, Gabrielle
Thornbridge BioDiesel’s teacher advisor Brian Sievers and his team built a biodiesel processor, held a community oil drive, hosted a number of popular presentations, and embarked on a media blitz about their project that resulted in MySpace and YouTube videos, as well as a number of appearances in local press outlets!

ecogeeksEcoGeeks, Florida
Team: Amanda, Jason, Shannon, Natasha, Ross, Jhon, David, Kevin, Shawn
Teacher advisor Allan Phipps and his team focused on aiding the hurricane relief efforts in Haiti. The team sent solar ovens, low-impact “green cuisine” recipes, and seedlings to Haiti’s large number of struggling refugees.

Biodiesel, Solar

Global Wind Systems in Michigan

Joanna Schroeder

Michigan is ramping up to be a leader in green jobs. Global Wind Systems, Inc. recently announced that it would build a full-scale wind turbine assembly plant in Novi, Michigan. Founded in September of 2008, Global Wind Systems will hire 250 people, most of whom had previously worked in come capacity in the failing auto industry. Interviews are scheduled to begin in May and to date, the company has received several thousand resumes.

Global Wind Systems will be the first wind manufacturer of delivery-ready, large-scale wind turbines in the state, but not the turbine1first company dedicated to producing wind turbines in Michigan. Mariah Power, a producer of wind turbines for homes and businesses, is hosting a grand opening event at its wind turbine manufacturing facility in Manistee, Michigan on April 20th.  The 74-ton turbines that will roll off the Global Wind Systems assembly line will be used by utility companies and wind farm developers for generating commercial wind power.

The Energy Revolution report released by Greenpeace anticipates that the transition to clean energy will create more than seven million net jobs by 2030. The state of Michigan is poised to attract many of these jobs through state incentive and tax programs as well as a new state mandate that requires Michigan utilities to generate at least 10 percent of the state’s electricity from renewable sources by 2015.

Chris Long, founder and CEO for Global Wind Systems once built and designed plants for the auto industry. He told The Detroit News that production is expected to begin in the fall of 2009 and hopes the plant is running at full capacity by the following spring. Once the plant is running full steam, Long anticipates that they will turn out 400 turbines per year valued at more than $8 billion.

Wind

Missouri Ethanol Group Reaches Out to Consumers

Cindy Zimmerman

MO RFA adMissouri’s ethanol producers are reaching out to consumers with a new website and print ad campaign.

The Missouri Renewable Fuels Association (MoRFA) website contains research and information about ethanol, links to other renewable fuel articles and an overview of the state’s farmer-owned biorefineries. Also featured on the new site are three print ads currently running in many Missouri newspapers that address common misconceptions and promote the benefits of ethanol.

“The MoRFA’s new Web site, combined with an effective informational campaign, highlights how ethanol is helping rebuild our economy and local communities by keeping dollars here at home,” said Gene Millard, MoRFA president and chairman of Golden Triangle Energy Cooperative, a farmer-owned ethanol plant in Craig, Mo.

MoRFA brings together leadership from the state’s six farmer-owned ethanol plants to foster the development of renewable fuels in Missouri. In partnership with the Missouri Corn Growers Association, MoRFA members include POET Biorefining – Macon, Golden Triangle Energy Cooperative, Mid-Missouri Energy in Malta Bend, Mo., POET Biorefining – Laddonia, LifeLine Foods in St. Joseph, Mo., and Show Me Ethanol in Carrollton, Mo.

corn, Ethanol, News