Ethanol is Second Place for Valero

Cindy Zimmerman

Valero may be in the ethanol business now with its purchase of eight former VeraSun plants, but oil is still the company’s first priority. That’s why they are not backing the ethanol industry’s request for an increase in the ethanol blend level to 15 percent.

ValeroAccording to an article in Ethanol Producer Magazine, Valero maintains its membership in the National Petrochemical & Refiners Association (NPRA) and stands behind the organization’s position against raising the ethanol blend level. They have not yet joined any of the ethanol organizations as a producer member, even though they now rank as the nation’s third largest ethanol producer.

Bill Day, director of media relations for Valero, told the magazine that “what we said about ethanol before we were an ethanol producer remains true: ethanol is an industry that is relying on government subsidies, a government renewable fuel mandate, and tariffs on imported ethanol.” However, he says that they recognize that ethanol is going to be an important part of the fuel mix in the country “and so as long as we’re required to buy ethanol, we might as well make it.”

Valero has also made some corn farmers unhappy by announcing it will not honor the high-priced corn contracts entered into by bankrupt Verasun. The Argus Leader reports that farmers in South Dakota were not surprised, but were disappointed by the decision. Still, they are happy that Valero is getting the plants back on line and fully operational.

Ethanol

Silver Anniversary for Ethanol Workshop

Cindy Zimmerman

The ethanol industry has grown tremendously in the last 25 years – and so has the International Fuel Ethanol Workshop and Expo (FEW).

FEW 25“The first event in 1985 had four tabletop exhibits and 36 people,” according to Mike Bryan, CEO of BBI International, which organizes the FEW. Last year, FEW 2008 featured over 4,000 attendees and nearly 1,000 exhibits. It is the world’s largest, longest-running ethanol conference.

This year, FEW has joined with the 2009 International Distillers Grains Conference & Trade Show and the Advanced Biofuels Workshop, to give industry professionals the ability to attend all three shows in one trip. All three events will be held at the Colorado Convention Center in Denver, with the Distillers Grains Conference kicking it off on June 14-15. The Advance Biofuels Workshop will be held on June 15 and the 2009 FEW on June 15-18.

Registration information and details for all three events, which are all organized by BBI International, can be found on-line here.

conferences, Ethanol, FEW

Midwest Senators Sponsor Biofuels Pipeline Bill

John Davis

The Midwest has plenty of ethanol and biodiesel… the big population centers in the Eastern United States needs those renewable fuels. You’d think it would be a match made in heaven, but the lack of infrastructure to move those biofuels has been a problem, adding extra transportation costs. But a new piece of legislation looks to rectify that.

According to this story from Midwest AGNet, a bill sponsored by U.S. Senators Tom Harkin (D-IA), John Thune (R-SD) and Tim Johnson (D-SD) looks to give loan guarantees for the construction of renewable fuel pipeline projects:

harkin“We must seize control of our energy future and take major steps towards the use of clean, renewable home-grown sources of energy,” said Harkin. “Promoting the planning and development of projects that transport renewable fuels efficiently and inexpensively helps enlarge the market for biofuels like ethanol, reduces our dependence on foreign fuels and will provide good construction jobs.”

thune“Pipelines are the safest, most reliable, and cost effective way to move biofuels from the areas they are produced to the markets where they are consumed,” said Thune. “These pipelines will reduce energy costs across the country as well as create an estimated 25 jobs for every $1 million of construction. Access to ethanol-dedicated pipelines will benefit both consumers and the ethanol industry for years to come.”

johnson“Many experts believe that a pipeline network to transport biofuels is necessary to achieve the aggressive renewable fuel requirements. But limited transportation options of truck, rail and barge will only get us so far. Pipelines are necessary to get this fuel moving to where the people are. These loan guarantees will spur pipeline development and help create new jobs and lower our dependence on foreign sources of energy,” said Johnson.

The importance of a pipeline is not just the lower costs of transportation. The article goes on to point out that they have 30 percent less emissions than railcars and 87 percent less than trucks. Plus, it’s just a safer way to get fuel from point A to point B. Finally, construction of renewable fuel pipelines could create up to 25,000 jobs nationwide.

Biodiesel, Ethanol, News

Ethanol Blending Tests May Take Another Year

A senior agency official with the U.S. EPA says they may need another year to determine how blending ethanol in gasoline over the current 10 percent limit would affect vehicles and nonroad equipment.

EPA is working with the Energy Department to try to determine whether “mid-level” blends at 13 or 15 percent will affect emissions controls and engine durability. EPA is under ethanol-industry pressure to allow blends up to 15 percent, especially as the “blendwall” — the point at which the market is saturated at the current 10 percent limit — looms.

Margo Oge, head of EPA’s Office of Transportation and Air Quality, said her agency has been analyzing the issue for years but that more work remains. “We have been working especially closely with the Department of Energy (DOE) to evaluate the impacts of the use of higher blends on the in-use fleet of highway vehicles and nonroad equipment, and hope to complete the testing over the course of the next year,” she said in a statement for a Senate Environment and Public Works Committee panel, which held a hearing on biofuels today. She also noted that DOE is conducting tests on a sampling of newer vehicles to gauge the emissions effects of higher blends.

The 10 percent blend, or E10, is the highest amount that can be blended into most vehicles and equipment, but auto companies are also making flex-fuel vehicles that can run on a much higher blend, up to 85 percent ethanol.

Energy, Environment, Ethanol, Government

Ethanol Contributes to Happiness

Cindy Zimmerman

Three of the nation’s top ethanol producing states – Nebraska, Iowa and Kansas – are also the top three financially happiest states in the nation.

According to MainStreet.com’s new Happiness Index – which used unemployment figures, foreclosures and non-mortgage debt to determine a state’s overall financial well being – the Cornhusker state is the happiest place to live. The index found that Nebraska has the second lowest unemployment rate in the country at 4.2% and the second lowest number of foreclosures nationwide.

Nebraska’s overall “Happiness Index Value” was 9 – the lower the better – which far outranked number two Iowa with a value of 25 and number three Kansas with a value of 34.

Ethanol production got some of the credit for Nebraska’s happiness in a Good Morning America story aired on Monday morning, which noted that Nebraska’s “ethanol plants, in particular, have flourished and the ongoing effort to grow industry has enabled people who lose jobs to find new ones relatively easily.”

Ethanol

Virginia Governor to Visit Biodiesel Plant

Cindy Zimmerman

Governor KaineVirginia Governor Tim Kaine, along with his Cabinet and members of his staff will be visiting a biodiesel plant Thursday as part of the first “Cabinet Community Day” of 2009. The Governor holds four such events each year, visiting eight regions of the state twice over the course of the administration.

Red BirchThe governor will visit Red Birch Energy – the first and only “closed loop system” delivery system for biodiesel in the United States. Red Birch Energy grows the crop, produces the fuel and sells the fuel all in one location, minimizing transportation costs.

Governor Kaine will also visit the Virginia Employment Commission, the Virginia Museum of Natural History and the Martinsville Speedway as part of the event.

Biodiesel, Government

FFV/Electric Volt to Offer Smart Charging

voltThis summer, General Motors (GM) will begin testing prototypes of their electric flexible fuel Chevrolet Volt. The company is in discussions on its outreach efforts for the 2011 vehicle on how it will be attractive to buyers.

One of the attractions of the vehicle will allow the consumer to charge the Volt any time through their OnStar communication system.

“We will have a customer-selectable car-charging feature at a minimum,” Vehicle line director of the Volt, Tony Posawatz said. “We don’t have to put in smart meters to get those kinds of features and accommodations.”

E85, News

Labs Added to Biodiesel Quality Assurance Program

John Davis

bq-9000-laboratoryA new certification for commercial labs will help ensure the most reputable biodiesel quality program will be verifying the green fuel.

This press release from the National Biodiesel Board says the National Biodiesel Accreditation Commission (NBAC) has created the BQ-9000 Lab Program:

“Reliable lab results are a major factor in guaranteeing fuel quality,” Rod Lawrence, Manager of Quality Control for Magellan Midstream Partners L.P. “This rigorous program will offer biodiesel customers the confidence that the lab used to test the renewable fuel is using best practices and has met standards for excellence synonymous with the BQ-9000 program.”

The BQ-9000 Lab Program calls for quality management systems in commercial laboratories that analyze biodiesel and biodiesel blends. Laboratories must establish and maintain the quality management system to be eligible for the BQ-9000 Lab Program. Laboratories operated by BQ-9000 Producers and Marketers are also eligible to seek this certification.

The lab certification program focuses on several analytical related areas such as:

* test result reporting
* equipment calibration and maintenance
* quality control
* proficiency testing

The BQ-9000 program combines the ASTM standard for biodiesel, ASTM D6751, and a quality systems program that includes storage, sampling, testing, blending, shipping, distribution, and fuel management practices.

Biodiesel, NBB

“Wingless Flight” in a Nearly Emission-less Car

John Davis

apterapicIt’s named for the Greek phrase for wingless flight and practically slips through air nearly as effortlessly as Lance Armstrong bicycling through France (half the drag of a Toyota Prius). The beauty you see on the left is the battery-powered Aptera 2E… a three-wheeled, two-seater due out this fall.

Mother Nature News’ Jim Motavalli road along with Aptera CEO Paul Wilbur as they took the green car out for a spin in New York City:

apteralogoWilbur didn’t let me drive the car—it was New York, I guess—but I rode shotgun for enough miles to form an opinion. Like most EVs, it was fairly quiet, though noisier than most, and the potholes and cobblestones set off some rattles. The car was comfortable and felt stable on its three wheels, but a few minutes behind the wheel would have allowed more of a diagnosis.

A transmission dial allows the choice of efficiency and sport modes, and a screen displays charging options: The Aptera is ready for the “smart grid,” with programmable late-night charging and the ability to sell battery power to the local utility.

Despite the undeniable strangeness—the Aptera could have been made for a 1960s science-fiction film featuring people of the future in jump suits—the company is serious about building a mainstream vehicle. “Tesla is the new Ferrari,” says Wilbur, gunning past a startled pretzel vendor. “We want to be the volume player in a radical new arena.”

The company is making three differently-powered models… the battery model, a gas-electric series hybrid and a conventional .7-liter gasoline car… all priced between $25,000 and $45,000. The one that runs on batteries is the one out this fall, while the other two models come out next year.

Aptera says the gas-powered model will get 100 mpg and cruise for a thousand miles. And the 2H, the hybrid, will trickle-charge the batteries on the way.

The Aptera plant in California can churn out 20,000 vehicles a year but expect just a few thousand in the first year. Company officials hope to make up to 100,000 annually.

Car Makers, Miscellaneous

Just Scratching the Surface of Biodiesel’s Potential

John Davis

centerevergreenGrowing biodiesel oilseed feedstocks along the nation’s highways… capturing the power of the sun by growing algae for biodiesel production… finding multiple uses for the by-products of biodiesel refining… the U.S. is just scratching the surface of the potential biodiesel holds for this country. Those are just some of the findings of a new report.

Entitled “High Yield Pathways for Production,” from the St. Louis, Mo.-based Center for Evergreen Energy , it represents the center’s mission of linking global research, business and policy issues to sustainable energy solutions. This press release has details:

The report released today summarizes findings about biodiesel, which is already the only commercially available advanced biofuel and the most diverse fuel on the planet. The findings are the result of the first symposium hosted by the Center for Evergreen Energy that convened alternative fuels research, industry and policy representatives on Nov. 21, 2008 at the Donald Danforth Plant Science Center in St. Louis.

“The Center for Evergreen Energy looks forward to aiding the biodiesel industry in strategies to meet the demand for renewable energy,” said Jay DeLong, Board Member of the Center for Evergreen Energy. The national center links global research, business and policy issues to improve products, processes, environmental acceptance and public adoption of sustainable energy solutions. “We plan on sharing this report with government agencies and the scientific community to give some direction to what research is needed to expand feestocks for biodiesel production.”

The algae working group, a promising source of biodiesel began their discussion with the important premise that a permanent energy solution depends on plants to capture some of the 20,000 terawatts of sunlight that fall on the earth.

You can read the full report for yourself at the center’s Web page: www.centergreen.org.

Biodiesel