Biofuels Focus at Commodity Conference

Cindy Zimmerman

National commodity organizations representing growers of corn, soybeans, wheat and sorghum gathered together for the first time as one group last week in Grapevine, Texas at the annual Commodity Classic. Corn and soybean growers have been together as one for the past 14 years, wheat joined the group last year, and sorghum made four this year.

Commodity Group PresidentsRenewable fuels were a major topic of discussion throughout the week-long conference and were addressed during the general session on Friday. Emcee Mark Mayfield (left) talked with each of them – National Sorghum Producers chairman Toby Bostwick, National Association of Wheat Growers president David Cleavinger, National Corn Growers Association president Bob Dickey, and American Soybean Association president Johnny Dodson.

“One of the key issues ASA will be working on in the coming year is the extension of our biodiesel tax incentive,” said Dodson. “Biodiesel has been a win-win for the agriculture community and the average consumer.”

Bob Dickey with NCGA said making sure the Renewable Fuels Standard is implemented and maintained is one of their top legislative priorities for this year and said they will be working with the ethanol industry to increase the blend rate for ethanol. “We are supportive of higher blend rates based on sound science, provided the EPA goes along with it,” he said.

Biodiesel, Cellulosic, corn, Ethanol, Farming, Indy Racing, NCGA, sorghum

Scientists Question California Climate Plan

Cindy Zimmerman

Over 100 of the nation’s top scientists are questioning the approach taken by the California Air Resources Board (CARB) which singles out biofuels for “indirect effects,” claiming that petroleum products result in lower carbon emissions.

CA ARBScientists affiliated with research labs such as the National Academy of Sciences, UC-Berkeley, Sandia National Labs, Lawrence Berkeley National Lab and MIT sent a letter to California Governor Arnold Schwarzenegger offering their “comments on the critical issue of how to address the issue of indirect, market-mediated effects.”

Under the CARB Low Carbon Fuel Standard (LCFS) proposal, all fuels are assigned a “carbon score” to reward the least carbon intensive fuels. But only biofuels are being singled out for so-called “indirect effects,” which thereby gives petroleum products a better carbon score and a competitive advantage.

The scientists make two major compelling points regarding the indirect land use issue:
1. The science is far too limited and uncertain for regulatory enforcement
2. Indirect effects are often misunderstood and should not be enforced selectively

The scientists warn Gov. Schwarzenegger that the state’s proposal “creates an asymmetry or bias in a regulation designed to create a level playing field. It violates the fundamental presumption that all fuels in a performance-based standard should be judged the same way … Enforcing different compliance metrics against different fuels is the equivalent of picking winners and losers, which is in direct conflict with the ambition of the LCFS.”

Read the letter here.

Audio, Energy, Ethanol, Government, Indirect Land Use, News

Take the Flex-Fuel Challenge

Cindy Zimmerman

Young people all over the country are encouraged to take the Flex-Fuel Challenge and help pave the way for our nation’s renewable energy future.

RFA e85The Renewable Fuels Association is kicking off the initiative today at Kansas State University and unveiling a new website, e85challenge.com to get college students engaged in the debate surrounding issues that impact their future: the economy, energy and the environment.

The challenge encourages them to produce a short video, take a photo, or even write a song about creative ideas on renewable energy that will impact future generations. Robert White, Director of Market Development for the Renewable Fuels Association, says the most creative of those entries can win some nice prizes. “Their own peers will decide who wins,” said White. “The overall winner will receive a MacBook Air laptop and each week we will be giving away a portable Passport™ hard drive in a drawing.”

White says they will be promoting the challenge during appearances at the top 15 college campuses nationwide, but anyone can enter on-line.

Listen to an interview with Robert here, conducted by Domestic Fuel reporter Joanna Schroeder at last week’s Commodity Classic: [audio:http://www.zimmcomm.biz/rfa/cc-09-joanna-rfa.mp3]

E85, Ethanol, Promotion, RFA

Bill Would Expand Use of Wood Waste for Ethanol

Cindy Zimmerman

Greg WaldenLegislation that would allow producers to make cellulosic ethanol out of waste wood from federal forest land was re-introduced last week in the U.S. House of Representatives.

Herseth SandlinRep. Greg Walden (R-Ore.) and Rep. Stephanie Herseth Sandlin (D-SD) are co-sponsoring the Renewable Biofuels Facilitation Act, legislation that would
fix a provision in the Energy Independence and Security Act of 2007 that prevents producers from making cellulosic ethanol out of nearly all federal forest waste. The legislation’s current definition of renewable biomass prevents almost all federal land biomass, such as trees, wood, brush, thinnings, chips, and slash, from counting toward the mandate if it is used to manufacture biofuels.

The bill would significantly broaden the definition of cellulosic ethanol within the Renewable Fuels Standard (RFS) to include biomass gathered from federal lands.

Cellulosic, Ethanol, Government

USDA Support for Renewable Energy

Cindy Zimmerman

The U.S. Department of Agriculture will be providing loan guarantees to help the ethanol industry, according to Secretary of Agriculture Tom Vilsack.

Tom VilsackAt last week’s USDA Outlook Conference, Vilsack said the USDA “has a responsibility for keeping an eye on that industry” to maintain an infrastructure to produce the next generation of biofuels.

Vilsack also says USDA is working with the Department of Energy to support research efforts to identify new feedstocks for biofuels to take some of the pressure off the food versus fuel discussion. “My view is that we have the capacity and the ability to do both and need to do both. If we’re to meet the President’s instruction that he wants more energy production out of our farm fields and ranches, and if we are going to turn this economy around and become less reliant on fossil fuels, we’ve got to create more biofuel.”

In addition to biofuels, Vilsack stressed USDA support for all forms of renewable energy, including wind and solar, “to continue the momentum of building and sustaining an energy industry within USDA and within farming and ranching.”

Biodiesel, Ethanol, Government, Solar, USDA, Wind

Emissions Modeling Researcher to Speak at Ethanol Board Meeting

ne-ethanol-brdDr. Ken Cassman of Univesity of Nebraska-Lincoln, is now scheduled to make a special presentation at the Nebraska Ethanol Board meeting on March 6. Dr. Cassman is the co-author of a study that found that corn ethanol reduces greenhouse gas emissions by 51 percent compared to gasoline.

The study, published in the Journal of Industrial Ecology, found that the emissions created during the production and use of ethanol—lifecycle emissions—are lower than the lifecycle emissions of gasoline. Cassman said that this was partly because ethanol production has recently become more efficient than ever before, while previous studies had relied on outdated data.

“Increased efficiency in ethanol production combined with better agricultural practices mean that ethanol production yields a higher net energy gain and lower emissions than we previously thought,” Cassman said.

Cassman will summarize his research and the process of developing an emissions modeling system during his presentation at the Nebraska Ethanol Board meeting on Friday, March 6 at 8:30 am. The meeting will be held at Hampton Inn South, 5922 Vandervoort Drive, in Lincoln.

Ethanol, Government, News

Free Ethanol and Lunch for Kansas State Students

John Davis

It certainly pays to be a Kansas State Wildcat this coming Monday, as students will get a FREE tank of E85 or E10 ethanol and a free lunch when they show their student ID at the Manhattan Farmers Cooperative. Plus, you could win an computer or a new hard drive.
kscornrfafca

The “Wildcat Free-For-All,” sponsored by the Kansas Corn Commission, the Renewable Fuels Association and Farmers Cooperative Association, takes place from 11am – 1pm.

If you’re not a student, you can still get a tank full of E85 for just 85 cents a gallon or E10 for only a buck! And that free lunch of hot dogs, chips and drinks is also for everyone.

e85challenge1While you’re filling up, take part in a 30-second video contest and be eligible to win an Apple Macbook or one of several 500GB Passport hard drives. Contest details are available at e85challenge.com.

Once again, don’t forget… Monday March 2, 2009 at the Manhattan Farmers Cooperative, 3384 Excel Road, Manhattan, Kansas, from 11am – 1 pm.

Free gas, free food, free computer stuff… what more could a college student want or need?

E85, Ethanol, News

Honda to Build Cellulosic Ethanol Research Facility

hondalogoHonda has announced that they plan to build a new R&D facility in Japan that will focus on producing biofuels from non-food feedstocks. The 1,050 m2 lab is expected to be completed and operating by November of this year. Honda has been working with the Research Institute of Innovative Technology for the Earth since 2006 and began operating an experimental production facility in 2007.

The new Kazusa-branch facility of Honda R&D Co., Ltd. Fundamental Technology Research Center, will be built within the Kazusa Akademia Park (in Kisarazu, Chiba). Honda plans to build a single 1,050m2 building (approximate gross floor space) as a testing facility on the 5,000m2 lot. The construction is scheduled to begin in April 2009, with the goal to begin operations in November 2009.

At this time, Nissan is the only foreign automobile manufacturer that offers a flexible fuel vehicle (FFV). There are over seven million FFVs currently on American roads.

Car Makers, Cellulosic, Ethanol, News

Obama’s Budget Calls for $15 billion for Renewables

John Davis

obamaportrait1After alluding to putting $15 billion in renewable energy development during his State of the Union Address (see my post from last Tuesday night), Pres. Barack Obama has officially called for the money in his first budget.

From his statement posted on the White House Web page:

Because our future depends on our ability to break free from oil that’s controlled by foreign dictators, we need to make clean, renewable energy the profitable kind of energy. That’s why we’ll be working with Congress on legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy.

And to support this effort, we’ll invest $15 billion a year for 10 years to develop technologies like wind power and solar power, and to build more efficient cars and trucks right here in America. It’s an investment that will put people back to work, make our nation more secure, and help us meet our obligation as good stewards of the Earth we all inhabit.

The $15 billion is just part of the $3.5 TRILLION 2010 federal budget.

Biodiesel, Ethanol, Government, News, Solar, Wind

New Report Shows Biodiesel, Ethanol Roles in Job Growth

John Davis

In a time when we constantly hear about rising unemployment, there’s some good news for the U.S. job sector… thanks to ethanol and biodiesel. A new report says advanced biofuels could directly create nearly 200,000 jobs in the next 13 years, with indirect and direct effects accounting for more than 800,000 new jobs and nearly $150 billion in economic activity during that same period.

The report by Bio Economic Research Associates, U.S. Economic Impact of Advanced Biofuels Production: Perspectives to 2030, analyzes the growth of an advanced biofuels industry and how it will impact four areas critical to U.S. economic recovery, including job creation, economic output, energy security and investment opportunity.

bioThe report earned praise from The Biotechnology Industry Organization (BIO):

Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section, said, “The advanced biofuels industry could create 29,000 new jobs and create $5.5 billion in economic growth over the next three years, as companies continue to deploy the
technology. As the advanced biofuels industry grows to the levels established in the Renewable Fuel Standard, it will create more than 800,000 new jobs throughout the economy. These new jobs will be in sectors of the economy that have experienced the highest rates of job losses over the past year, including agriculture and construction.”

The new study’s results include:
• Direct job creation from advanced biofuels production could reach 29,000 by 2012, 94,000 by 2016, and 190,000 by 2022.
• Total job creation, accounting for economic multiplier effects, could reach 123,000 in 2012, 383,000 in 2016, and 807,000 by 2022.
• Direct economic output from the advanced biofuels industry is estimated to rise to $5.5 billion in 2012, $17.4 billion in 2016, and $37 billion by 2022.
• Taking into consideration the indirect and induced economic effects, the total economic output effect for the U.S. economy is estimated to be $20.2 billion in 2012, $64.2 billion in 2016, and $148.7 billion in 2022.
• Advanced biofuels production under the RFS could reduce U.S. petroleum imports by approximately $5.5 billion in 2012, $23 billion in 2016, and nearly $70 billion by 2022.
• The cumulative total of avoided petroleum imports over the period 2010–2022 would exceed $350 billion.

And BIO officials say by 2030, a modest target of 45 billion gallons of biofuels could produce nearly 2 million jobs and $300 billion in economic activity… plus the savings the country would see by not importing the oil to cover that fuel. They believe that advancing technology will help meet those goals.

Biodiesel, Ethanol, News