U.S. Governors Push for 13 Percent Ethanol

gbcAccording to Reuters, members of the Governors’ Biofuels Coalition said they want the U.S. Environmental Protection Agency to issue a waiver to allow the sale of 13 percent ethanol blends. U.S. governors who want to see more ethanol production said they are optimistic regulators will soon boost the allowed blend rate for ethanol in gasoline to 13 percent from 10 percent.

Iowa Gov. Chet Culver, vice chair of the Governors’ Biofuels Coalition said, “The EPA is going to take a very serious look at that 10 percent waiver, and we’re encouraged. We’re optimistic, and we think we have people in place, like (Agriculture Secretary Tom) Vilsack in particular, that can help us make the case on a daily basis out here.”

North Dakota Gov. John Hoeven, the coalition’s chair, told Reuters he hoped the EPA would act on the waiver request “within weeks or months.” He said the increase to 13 percent was just the first step. “We want to continue that effort to increase the percentage blend into fuels into the fuel supply,” Hoeven said.

Ethanol makers have been pushing to boost the blend rate as high as 20 percent to encourage the development of the industry. Any increases to ethanol blend rates would also need the support of the auto industry, which is concerned about the effects of higher blends on fuel lines and catalytic converters, Hoeven said.

blends, Car Makers, Ethanol, Government, News

Report: Alt Fuels Could Clean Up Ports

John Davis

containertruckAlternative fuels, such as biodiesel and natural gas, and hybrid electric vehicles could be the keys to cleaning up the world’s ports, polluted by the running of petroleum diesel enginesto onload and offload the goods coming and going through these points of commerce.

This story from NGVGlobal.com quotes a study, “Container Ports and Air Pollution,” published by Energy Futures, Inc.:

Reliance on diesel fuel for goods movement has contributed to a reputation for container ports being among the world’s biggest sources of air pollution and greenhouse gas emissions. Now, progress is being made toward reducing harmful emissions. The study found that natural gas is currently the leading alternative fuel for goods movement at U.S. container ports, while hybrid electric vehicles are gaining popularity in Asia.

James S. Cannon, President, Energy Futures. Inc., said, “A key premise of our studies of air pollution in the container shipping industry is that alternative fuels offer viable options for use in goods movement operations to replace polluting fuels that are derived from oil.” Mr. Cannon unveiled the new report to an international audience in a speech today at the GreenPorts 2009 Conference in Naples, Italy.

The new Energy Futures study updates and expands on a report titled “U.S. Container Ports and Air Pollution: A Perfect Storm,” which was published in February, 2008. That study identified environmental protection alternative fuel programs at each of the Top 10 U.S. container ports, including their use of natural gas, biodiesel or hybrid electric vehicles.

The 77-page report is a call for leaders to push for more alternative fuel use to help, not only those port communities, but the world community as a whole.

Biodiesel, Indy Racing, Propane

Chicago Farmers to Meet About Energy Matters

John Davis

chicgofarmerlogoThe Chicago Farmers, a group that provides educational forums between its members and those allied to agribusiness, will talk energy matters during its next meeting on Monday, March 16th at the University of Northern Illinois-Naperville campus.

According to the group’s Web site, the “Renewable Energy: Agriculture’s Impact Present & Future” is a must-attend event for those who own farmland in the Midwest, as energy issues have an effect on commodity prices, land value and leasing terms:

A panel discussion including:

· Dr. Robert J. Hauser: Department Head, Agricultural & Consumer Economics, at the University of Illinois at Urbana-Champaign

· Eric Rund: Rund Farms & International AGtivities, Chicago Farmer Board of Director

· Dr. Martha Schlicher: GTL Resources plc, Technology and Business Development

You can register at the event, starting at 5:30 pm (program starts at 6:15 pm) or through this Web site by noon, Thursday, March 12, 2009

Biodiesel, Ethanol, News

Canadian Cellulosic Plant Plans

Cindy Zimmerman

A new cellulose ethanol project is in the works for Saskatchewan.

KL ProcessKL Energy Corporation of South Dakota and Prairie Green Renewable Energy of Alberta have announced their intent to develop a cellulose ethanol plant near Hudson Bay, Saskatchewan.

Prairie GreenAccording to a joint release from the two companies, the Northeast Saskatchewan Renewable Energy Facility will use KL Energy’s state of the art design and engineering to produce advanced ethanol from wood waste.

The companies plan to build a plant that initially provides 5 MGY of cellulose ethanol to the Saskatchewan market. Plans include a second facility that will allow doubling production.

Cellulosic, Ethanol

IL Corn to Sponsor Clean Snowmobile Team

sae-clean-snowmobileThe 2009 Northern Illinois University (NIU) Clean Snowmobile Team will be competing in the Society of Automotive Engineering (SAE) Clean Snowmobile Challenge. The team will be sponsored by the Illinois Corn Marketing Board (ICMB). This year’s competition’s theme will be “Flex Fuel” and NIU’s snowmobile will run on ethanol.

SnowmobileThe annual SAE Challenge began in 2000 and tests the engineering and design capabilities of students from schools across the country. The “challenge” of each competition has been for students to modify a stock snowmobile to meet a series of requirements, including air pollution levels.

NIU ran their snowmobile last year on E85, and won 6th place overall and rookie of the year. This year’s competition will be held March 16-21 at Michigan Technical University in Houghton, Michigan.

corn, E85, Ethanol, News

Biodiesel Board Responds to EU Tariffs

John Davis

As I told you yesterday, the European Union has decided to slap some tariffs on American biodiesel coming into the continent because of what the Europeans see as unfair subsidies the US gives to American biodiesel producers.

In response, the National Biodiesel Board’s Vice President of Federal Affairs, Manning Feraci, issued this statement yesterday:

feraci“Today’s meeting is just one step in the ongoing legal process that will ultimately conclude later this year. As we have since these investigations were initiated in June of last year, the NBB will continue to use all legal options at its disposal to defend the interests of the U.S. biodiesel industry.

“Ultimately, before the case is finally resolved, the EC must determine whether U.S. competition is harming the European biodiesel industry before duties of any kind can be imposed. The facts in this case remain the same. The European industry is not being harmed by U.S. competition. In fact, the EC has before it data demonstrating that key European biodiesel companies are doing quite well. And for those companies that are faring poorly, it is factors not related to U.S competition – bad business models; high feedstock costs; and detrimental changes in EU member state policy – that are the cause. As the case proceeds, the NBB will continue to highlight this fundamental shortcoming in the European Biodiesel Board’s complaint.”

Biodiesel

Final 2008 Ethanol Numbers

Cindy Zimmerman

The final 2008 ethanol production and demand numbers are in and despite industry issues towards the end of the year, it was another record with both numbers up over 40 percent from 2007.

RFAAccording to year-end figures released by the Energy Information Administration, American ethanol facilities produced more than 9.2 billion gallons of ethanol in 2008, up from some 6.5 billion gallons in 2007. On average, the U.S. ethanol industry produced 601,000 barrels per day (b/d), compared to 423,000 in 2007.

Ethanol demand continued to outpace production last year. According to the Renewable Fuels Association, demand averaged 630,000 b/d in 2008 or more than 9.5 billion gallons total. By comparison, ethanol demand in 2007 averaged 446,000 b/d.

“Despite the economic challenges facing this country and this industry in 2008, America’s ethanol producers still managed to meet the goals put before them and build the necessary foundation for a strong and robust future for renewable fuels,” said RFA President Bob Dinneen. “While challenges will still persist through 2009, this industry is poised to help lead this nation out of its economic downturn and provide the kind of economic, energy, and environmental stability that is desperately needed.”

Ethanol, News, RFA

Alternative Energy Grants Available

Joanna Schroeder

doelogoThere are several new alternative energy grants available for wind energy and biomass energy. The first grant, “20% Wind by 2030: Overcoming the Challenges” was posted on February 27, 2009 and closes on March 5, 2009. The government is posed to award up to 99 grants for a total of $8 million. You can get more information and apply online at www07.grants.gov/ or click here. The grant application number is DE-PS36-09GO99009.

For those of you working on biomass projects, there is a new grant available, “Biomass Research and Development Initiative” that is aimed at funding biomass projects that will bring technology to market at a competitive price and replace fossil fuels. The grant will award up to $25 million and applications are due on June 1, 2009. You can get more grant details at  www07.grants.gov/ or click here.  The grant application number is DE-PS36-09GO99016.

There are new grants posted every day as the alternative energy industry has been targeted for funds through the recent stimulus packages so check the site often. We’ll also bring you updates as new energy grants are posted.

Miscellaneous

Study Shows Economic Stimulus to Increased Ethanol Blends

Cindy Zimmerman

A new study released today concludes that increasing the blend of ethanol in the U.S. gasoline supply from 10 to 15 percent could boost job creation and economic growth.

Growth EnergyThe study was commissioned by Growth Energy and conducted by researchers from North Dakota State University (NDSU). Nancy Hodur, NDSU researcher with the Department of Agribusiness and Applied Economics, says there would be substantial economic and employment impacts associated with the expansion of the ethanol industry if the blend rate were increased.

“We estimated that annual direct economic impacts would be $9.6 billion and the total direct and secondary impacts would be $24.4 billion and that level of economic activity would support 136,000 jobs,” said Hodur. Those impacts were based on the multiplier effect of adding another 60 ethanol plants nationwide.

Former Congressman and Growth Energy board member Jim Nussle says the study supports the economic need to increase the ethanol blend level, which he says was arbitrarily set 30 years ago at ten percent. “These figures really are dramatic and they prove that when we want we can create these desperately needed jobs,” said Nussle. “The federal government can act right now to increase the amount of ethanol blends in the nation’s fuel supply without having to dip into another stimulus package or create another bill.”

Nussle says the Environmental Protection Agency has the authority to increase the blend level through the rule-making process and while it could theoretically be done quickly the former congressman refused to speculate on how long it might take EPA to take such an action.

Listen to the Growth Energy press conference announcing the study here: [audio:http://www.zimmcomm.biz/growth-energy/3-4-09-GE-presser.mp3]

Audio, blends, Ethanol, Government, Growth Energy

EU Pulls Trigger on Biodiesel Tariffs

John Davis

useuflagsAs I told you a couple of weeks ago, the European Union for some time has been threatening to slap tariffs on American biodiesel coming into Europe… barring some deal today to derail the measures.

Well, this story from Reuters says that there was no last-minute reprieve and the duties are set to hit on March 13th:

The EU firms accuse U.S. producers of being involved in a “splash and dash” scheme, whereby they import cheaper biodiesel from countries such as Brazil and add less than 5 percent of U.S. diesel. The producers then qualify for a subsidy from Washington before exporting it to Europe.

From March 13, U.S. firms exporting biodiesel into the EU will have to pay additional tariffs for an initial six months, ranging from 26 euros ($32.88) to 41 euros per 100 kg…

After six months, the executive European Commission must decide whether to propose definitive duties, which normally last five years. Definitive duties must be approved by EU governments to enter into force…

The temporary duties will make it hard for U.S. biodiesel to compete in the European market, said Manning Feraci, a vice-president with the U.S. National Biodiesel Board.

But for the duties to stick, the Commission will need to find that U.S. imports have harmed producers, Feraci said.

“This simply is not the case,” Feraci said, noting some European producers are doing well, while others have been hurt by factors unrelated to U.S. imports, he said.

You and I both know this is not the last we’ll hear about this. Stay tuned…

Biodiesel, Indy Racing