California Ethanol Lawsuit Dropped

Cindy Zimmerman

An oil refiner has dropped a lawsuit against the California Air Resources Board (CARB) challenging a regulation that would boost ethanol consumption in the state by 2010.

TesoroAccording to a story in the Sacramento Business Journal, Tesoro Corporation dropped the lawsuit after a judge denied the company’s request for a temporary injunction to delay a new gasoline standard set to take effect next year which would increase the percentage of ethanol required to be blended into gasoline sold in California from 5.7 percent to 10 percent. The company claims that the standard is in conflict with a state law that calls for a decrease in greenhouse gas emissions because some studies suggest the production of ethanol increases greenhouse gas emissions.

The paper reports that Judge Timothy Frawley said he was not persuaded that Tesoro would prevail on the merits of its case at trial or that the company would suffer “irreparable harm” from the new standard. He also said a 1999 environmental evaluation that assessed impacts of using ethanol in amounts up to 10 percent was sufficient to meet state health code.

Tesoro is an independent oil refining and marketing company which operates two refineries in California.

Environment, Ethanol

Accelerating Drive Toward Higher Blends

Cindy Zimmerman

Ethanol Report PodcastThe drive toward higher blends of ethanol in gasoline is accelerating and the Renewable Fuels Association (RFA) is working to ensure that the blend wall is just another bump in the road for ethanol to ride over.

This edition of “The Ethanol Report” podcast features comments from RFA President and CEO Bob Dinneen, Agriculture Secretary Tom Vilsack, EPA Acting Biomass Program Manager Valri Lightner, and Outdoor Power Equipment Institute Executive Vice President Kris Kiser about work being done to increase the amount of ethanol approved for use in regular gasoline.

You can listen to “The Ethanol Report” on-line here:
[audio:http://www.zimmcomm.biz/rfa/ethanol-report-28.mp3]

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

Audio, blends, Ethanol, Ethanol Report, RFA

USDA Increases Corn for Ethanol Use

Cindy Zimmerman

The newest supply demand report out from the US Department of Agriculture today increases estimates of corn for ethanol usage.

USDAAccording to the report, “U.S. corn ending stocks for 2008/09 are projected 50 million bushels lower this month as higher ethanol use more than offsets a reduction in exports. Corn use for ethanol is projected 100 million bushels higher on indications of improving blender incentives and higher ethanol use. Blender margins have become increasingly favorable since late February as gasoline prices have risen relative to those for ethanol. A continuing recovery in weekly production of gasoline blends with ethanol is also supportive of ethanol demand as are the latest data on ethanol production, imports, and stocks which indicate record use in December.”

corn, Ethanol, USDA

Colleges Smarten Up to Alternative Fuels

John Davis

Harvesting willow trees for biomass in Vermont… turning corn stover into biofuels in Minnesota… these are just a couple examples of projects sponsored by the growing number of colleges and universities in the country that are finding greener alternatives to non-renewable petroleum sources of fuel.

There’s a fascinating story in the Christian Science Monitor about how some of these institutions of higher learning are “walking the walk” by changing they way they operate:

In December 2006, 12 college and university presidents joined together to form the American College and University Presidents’ Climate Commitment. They pledged to set target dates for becoming carbon neutral – reducing the carbon emissions from their heating, cooling, electrical, and transportation needs as much as possible and then buying carbon offsets to complete the task. A little more than two years later, 614 colleges and universities in all 50 states have made the commitment. They represent about one-third of the student body at colleges and universities in the United States.

Interest on college campuses in taking steps to slow climate change have “exploded,” says Anthony Cortese, president of Second Nature, a Boston-based nonprofit group that works with colleges on environmental and sustainability issues.

The article goes on to point out how some schools are using these green projects to get donors to underwrite the costs… something considered to be a pretty easy sell in these days of tight markets.

Biodiesel, Ethanol, News

Kansas Ethanol, Biodiesel Retailer Wins Green Design Award

John Davis

zarco66A Kansas biodiesel and ethanol seller has been recognized for its efforts to sell the green fuels in a station that reflects that commitment to a better environment.

Zarco 66, which boast eight gas stations and convenience stores in Lawrence, Kansas, has picked up the Convenience Store Petroleum (CSP) Excellence in Green Design Award for its innovation to bring biofuels to the customer in some pretty green buildings:

“There are so many reasons for any business to incorporate environmentally-friendly practices, but there are even more reasons for fueling stations to start making the transition,” Scott Zaremba, president of family-owned Zarco 66, states. “With the volatility of the petroleum industry and foreign oil sources, we are on the front lines of two important battles—the environment and economic preservation.”

Putting action behind this philosophy, Zarco 66 launched the Green Energy Gateway station in February of 2008. The company employs the four “Rs”: recycling, reducing, renewing, and reusing, to transform an existing site into an eco-conscious location. From offering five grades of biofuel to reducing runoff with a living plant roof and using wind and solar energy to power the station, the Green Energy Gateway location is an example for other businesses on ways to go green.

“We chose Zarco 66 as the winner of this award because they are proof of how one business can make a difference,” Mitch Morrison, group editor of CSP, describes. “Scott Zaremba and his team do more than simply offer eco fuels; they educate consumers about the use of alternative energy in their vehicles, at home and at work. It is this type of comprehensive approach that will have the greatest impact on future generations.”

Zarco 66 is the first winner of the new award in the category of Excellence in Green Design.

Biodiesel, Ethanol, News

Blend Labels Now Available Through the NEVC

NEVC E40Many fuel retailers have begun offering blends between 10 percent and 85 percent ethanol for flexible fuel vehicles. The National Ethanol Vehicle Coalition (NEVC) now has available E20, E30 and E40 labels for retailers to use for their blending pumps.

NEVC E40These labels are offered at a member rate and non-member rate. The coalition also offers the mandatory pump labeling for these blends. Besides blend pump labels, the NEVC offers a complete “pump imaging package” for E85 fueling stations. A listing of all items offered for pump labeling can be found by clicking here.

blends, E85, Ethanol, Facilities, National Ethanol Vehicle Coalition, News

MOR Offers More for Ethanol Producers

Cindy Zimmerman

MOR TechnologyAn Illinois-based technology services company recently unveiled a new set of “2nd Generation” technologies aimed at increasing the sustainability and profitability of corn-based ethanol plants.

According to MOR Technology, the MOR-Frac Plus+ Milling System in combination with their supercritical CO2 corn oil extraction technology can help plants “increase and diversify revenues by producing premium, value-added food-grade products, while also decreasing operating costs and environmental footprint.”

The company says its MOR-Frac™ Plus+ Milling System combines both dry and wet milling technology to offer the product purity and product yields achieved in wet milling, but with the energy efficiency, environmental impact, and capital/operating costs much closer to those of dry milling.

MOR is currently working with a number of customers, design-build firms and financing institutions to install the technology in corn-based ethanol plants around the country.

MOR SupercriticalIn addition, MOR Supercritical – an affiliate of MOR Technology based in Allentown, Pennsylvania – has started construction on a state-of-the-art plant that will showcase the company’s breakthrough supercritical fluid extraction technology for low-cost, high-volume commodity products. The 15 tonne-per-day plant will be located in the Lehigh Valley of Pennsylvania, and officials expect to complete construction in the third quarter of 2009.

MOR Supercritical has developed a corn oil and commodity oilseeds extraction system that uses proprietary breakthroughs in supercritical CO2 technology allowing for operating costs and energy use below that of hexane or mechanical extraction while also producing an all-natural, hexane-free corn oil for human consumption.

corn, Distillers Grains, Ethanol, technology

Ag Secretary Focused on 12-13 Percent Ethanol Blend

Cindy Zimmerman

Agriculture Secretary Tom Vilsack would love to see the ethanol blend rate increased to 15 percent, but right now he would be happy with 12-13 percent.

Vilsack“Our view is that we can get to 12 to 13 percent by just simply understanding that it’s significantly not much different than 10 percent, it’s an insignificant difference, and under the rules and regulations EPA could do that,” Vilsack said Monday. “If you get to 15 percent or higher, there may be more review required, and we appreciate that. But the help is needed now.”

Vilsack made his comments during a press conference Monday to introduce rural stimulus funding. Of the six questions he was asked by reporters, half of them pertained to increasing the allowable blend rate for ethanol in gasoline, and he repeated his emphasis on the 12-13 percent level three times.

“Right now my focus is on 12 to 13 percent because I think it’s doable more quickly, and it sends, I think, the right set of signals to the industry that we are with them,” the secretary said.

Vilsack also noted that USDA will continue to work with ethanol production facilities in financial difficulty to reconfigure their loans under a rural loan guarantee program. “That could be of some benefit, especially if the bankers are willing to work with us in restructuring the terms so that they are a bit more favorable either in interest rates or payments or principal,” said Vilsack. He stressed that the ethanol industry is still an “infant industry and so it’s going to have some growing pains. It’s going to have some ups and downs. And what we need to do is to provide some degree of stability.”

Listen to all of Vilsack’s ethanol related comments here: [audio:http://www.zimmcomm.biz/usda/vilsack-ethanol.mp3]

Audio, Energy, Ethanol, Government, News, USDA

LACTROL, Leading Antibiotic for Ethanol Industry

Joanna Schroeder

ethanolperformanceYou may not have heard about Phibro Ethanol Performance Group but what they offer is what they believe is the top performing antibiotic in the ethanol industry. According to Tom Slunecka, Phibro’s VP of Marketing, testing has shown that their base product, LACTROL, “outperforms all other products on the market.” Phibro Ethanol Performance Group is a subsidiary of PhibroChem, a third-generation family owned business that has specialized in animal health for more than 60 years and expanded into the ethanol industry a few years ago.

Antibiotics are an important element in the ethanol production process because during any type of  fermentation process an infection can incur. Infections thrive in environments of high moisture and temperatures and ethanol plants create an abundance of both. 

tom-slunecka-phibroAs margins continue to be tight in the ethanol industry, I asked Slunecka to give the industry some advice when it comes to choosing products and services for their plants. “Just like how consumers purchase automobiles, the time is right to be selective in the products they choose and the services they ask for,” answered Slunecka. “It’s vital that all inputs be maximized in order to generate the greatest return on investment.” 

According to Slunecka, you need to ask the question, “were the products chosen for their efficacy or overall performance package or were they chosen back in the boon days when these decisions didn’t hit the bottom line like they are now?” The reason is that the integrity of a company’s services and products is paramount.

Phibro Ethanol Performance Group is dedicated to the industry and is growing their team so that they can continue to provide a quality product and service package to an industry that they are confident will continue to grow. 

Listen to my full interview with Tom here: [audio:http://www.zimmcomm.biz/ethanol/cc-09-joanna-slunecka.mp3]

Audio, Commodity Classic, Ethanol

Big Stimulus Bill Might Help Small Wind Turbines

John Davis

While large-scale infrastructure projects grab the headlines, the recently passed gargantuan-sized $787 billion economic stimulus bill might end up helping a small, emerging, renewable energy business in the United States.

This story from CNN says the American Recovery and Reinvestment Act of 2009… with its 30 percent investment tax credit for those who buy wind turbines for homes or small businesses… could give a real kick to the small wind turbine industry:

smallwindEven amid a recession, this tax credit “is going to blow the top off the market,” said Ron Stimmel, a “small-wind” advocate with the American Wind Energy Association.

The association predicts the federal subsidy could help the small-turbine market grow by 40 to 50 percent annually, a boost that would parallel the growth of the U.S. solar photovoltaic industry after a similar 2005 initiative.

Unlike the towering windmills sprouting en masse from the Western Plains, small wind turbines have a capacity of 100 kilowatts or less and are designed to operate on the consumer side of the power grid, often in combination with solar panels.

According to the American Wind Energy Association, the United States is already the world’s leading manufacturer of small-wind technologies, holding roughly two-thirds of the world’s market share. Last year, American companies made 98 percent of the small wind turbines sold in the United States.

To conservation-minded home or business owners, the turbines are an investment in clean energy and one way to ease America’s dependence on foreign oil. In the right location, a 10-kilowatt turbine could supply the entire electricity needs of an average American household. The newly subsidized larger models can help power small businesses, farms and schools.

Of course, there are some limitations to where these wind turbines can go up. Most of them need to have at least an acre of open ground around them, without trees or buildings to dampen the wind. But new technologies are being developed to have more rooftop wind turbines with either corkscrew or paddle-wheel designs put up on buildings in some of those urban areas. The potential sure seems to be there.

Wind