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

Military to Fly on Cellulosic Fuel

John Davis

darpa_logoAmerican fighter jets, bombers and cargo planes might soon be displaying a green jet stream… at least metaphorically.

Greentech Media reports that the the Defense Advanced Research Projects Agency (DARPA) has already let a $19.6 million contract to Logos Technologies to come up with a way to make JP-8… the military’s all-around fuel primarily used as a replacement to diesel… out of cellulose. And if it is successful, the contracts could grow for Logos and other defense companies and universities:

Arlington, Va.-based Logos could see its DARPA cash flow grow to $35 million if “all phases of the development program are complete,” the company’s press release stated. The company has 21 partners on the project, including universities and companies…

Of course, jet fuel also needs to perform at the cold temperatures found high in the sky without starting to freeze or gum up, making it a particular challenge for biofuel makers.

DARPA, for its part, is looking for jet fuel that costs less than $3 per gallon, made with processes that eventually should be able to convert half the energy content of cellulosic materials into fuel energy, according to this June information paper on its biofuels program.

Many feedstocks are being considered. San Diego-based Science Applications International Corp. (SAIC) won a similar research contract from DARPA in January, one with the potential to grow to $25 million, aimed at finding ways to turn “agricultural and aquacultural feedstocks.”

Aquaculture translates into algae-biodiesel… something civilian airlines have also been working on. Officials say they just need to make the production of algae oil as a feedstock more cost effective to meet that DARPA $3-a-gallon-and-below goal.

Cellulosic

Cal Hydrogen Refueling Stations Get $6.8 Mil Boost

John Davis

calarbOne of the big knocks on hydrogen fuel-cell vehicles has been the availability of refueling stations… or more accurately, the lack thereof. But that could be changing in California.

This article from RedHerring.com says the state’s Air Resources Board is handing out $6.8 million in grants to build four hydrogen refueling stations, doubling the amount of hydrogen available for California drivers:

ARB Chairman Mary Nichols said in a statement that the grants will help cultivate the “burgeoning industry” for fuel-cell vehicles and as well as provide the state with more clean power.

Three Southern California sites around Los Angeles and one Northern California site near San Francisco will receive $1.7 million each in grants. They include the University of California at Los Angeles, which will build a publicly available facility that can provide up to 140 kilograms of hydrogen per day. The average refueling amount for a fuel-cell vehicle is about four to five kilos.

Another grant recipient, the San Francisco Airport, plans to build a hydrogen refueling facility that can dispense 120 kilograms per day and fuel passenger cars and busses operated by transit agencies throughout the greater San Francisco Bay Area.

Mebtahi Station Services received a grant for its Harbor City filling station, while Shell Hydrogen will get money to add a refueling facility to a Newport Beach gasoline station.

Hydrogen

RI Legislature Moves Forward Biodiesel Tax Break

John Davis

A tax incentive designed to encourage the use of biodiesel has moved forward in the Rhode Island State Legislature.

dipalmaThe Providence (RI) Journal reports the state’s Senate Finance Committee gave unanimous approval to Sen. Louis P. DiPalma’s measure that would exempt blended biodiesel fuel from the state’s 30-cents-a-gallon motor fuel tax:

Current law generally exempts from the tax only 100 percent biodiesel fuel. The bill would also exempt biodiesel fuel that is mixed with regular diesel.

The bill “looks to put the right type of incentive in place” to further encourage the use of biodiesel fuel, DiPalma said at a hearing on the measure at the State House on Tuesday.

Among the bill’s cosponsors are Senate President M. Teresa Paiva Weed, D-Newport, Senate Majority Leader Daniel P. Connors, D-Cumberland, and Senate Minority Leader Dennis L. Algiere, R-Charlestown.

The vote occurred shortly after a hearing on the bill, S 0525, which advocates said would help local biodiesel manufacturers and distributors. Paiva Weed and Connors joined other committee members to vote in favor of the measure, which now goes to the full Senate.

According to the National Biodiesel Board, about half of the states now offer either tax credits, exemptions or both for biodiesel.

Biodiesel, Legislation

Drive Clean and Green in NC

A caravan of more than than 24 alternative fuel vehicles will leave from Raleigh, NC on April 15 at 3:30 p.m. and travel across the state. The Clean Fuel Advanced Technology program at the NC Solar Center is leading a clean transportation technology drive across North Carolina. The tour will continue with stops in Greensboro and Charlotte on April 16.

driving_clean_green_ncVIP drivers include: Congressman Bob Etheridge, U.S. Ambassador (retired) James Cain, NC Cabinet Secretaries: Gene Conti, Dee Freeman, Britt Cobb and Triangle Transit Authority Director, David King and over 24 alternative fuel/advanced technology vehicles including: E85, neighborhood electric, plug in hybrid, natural gas, and propane vehicles.

Sponsors of the tour include: NC Department of Transportation, NC Division of Air Quality, NC State Energy Office, Environmental Defense Fund and Novozymes of North America. More information visit: www.ncmobilecare.org.

Biodiesel, Car Makers, E85, Ethanol, News

Vilsack and Pelosi Push For More Ethanol

vilsackAs ethanol producers push for an increased amount of ethanol in gasoline, Agriculture Secretary Tom Vilsack says the government should move quickly for this allowance. Both Secretary Vilsack and Speaker of the House Nancy Pelosi spoke to the National Farmers Union annual convention in Arlington, Va.

“We can, we believe, move fairly quickly to move the blend rate to 12 or 13 percent in the interim,” said Vilsack. An increase in the ethanol additive can boost the demand for the product as much as 6 billion gallons a year. However, tests still need to be done on automobiles and small engines to be sure the increase of ethanol is not harmful.

Adora Andy, the EPA’s press secretary, said in a statement that the agency will review the request and “act based on the best available science.” The EPA is the reigning power on lifting the cap.

House Speaker Nancy Pelosi is also in support of the increase in the ethanol additive. She added, “It seems to me we should be able to do that.”

blends, Ethanol, Government

Producing Ethanol From Duckweed

duckweedDuckweed, a small aquatic plant, can help clean up energy waste and be converted into ethanol the same way as corn ethanol.

Researchers from North Carolina State University noted that gowing duckweed on hog wastewater can produce five to six times more ethanol than that of corn. They also say that producing ethanol into duckweed could be faster and cheaper than corn produced ethanol.

“We can kill two birds — biofuel production and wastewater treatment — with one stone: duckweed,” said Professor Jay Cheng.

Duckweed captures the nutrients in the wastewater for growth and preventing their release into the environment. In other words, Cheng says, “Duckweed could be an environmentally friendly, economically viable feedstock for ethanol.”

Cellulosic, Ethanol, feedstocks, News

Aventine Claims “Extra RINS” Cause for Bankruptcy

Joanna Schroeder

aventineWhile most ethanol companies blame financial troubles on high commodity and energy prices, Aventine Renewable Energy Holdings, Inc. has thrown a new reason into the ring — blaming its bankruptcy on the availability of excessive Renewable Identification Number credits or RIN.  RINS are used by the EPA to track how much ethanol is being blended into the the fuel supply. Oil companies were to have reported their ethanol use to the EPA by the end of February.

Typically the ethanol marketer (Aventine) assigns the RIN and can then sell the ethanol with or without the RIN. The value of the RIN sold separately fluctuates from as low as 2 ½ cents to as high as 16 cents per gallon.

In a company statement released earlier this week, Aventine’s President and CEO, Ron Miller, was quoted as saying, “Ethanol demand has also been negatively affected by refiners and blenders using excess renewable identification numbers (“RINS”) to help meet their renewable fuels standard obligations instead of purchasing actual gallons of ethanol.”

RIN trading has become flush with speculators causing concern that these excess credits may instead be the result of fraud and duplication. At present, EPA is planning to address this issue in RFS-2 which is now scheduled to be released and in effect in early 2011 and is looking to create a Moderated Transaction System (MTS) that would serve as the federal registry for RINS.

Today, there is a voluntary RINS registration system called RINSTAR that is run by Clean Fuels Clearinghouse. In a release rinstar-logo1today, company President Clayton McMartin said, “We are able to safeguard our members against invalid RINS by taking proactive measures thorough our patent pending certification processes.” 

As more ethanol is blended into the fuel system to meet environmental and domestic energy goals the controversy and market uncertainty surrounding the buying and selling RINs is expected to intensify.

Company Announcement, Ethanol

USDA Sees No Change in Corn Use for Ethanol

Cindy Zimmerman

USDAThe April World Supply and Demand report out today from USDA lowers ending stocks for corn, but keeps corn use for ethanol the same.

Corn ending stocks were cut by 40 million bushels “as higher expected feed and residual use more than offsets a reduction in food, seed and industrial use.” Food, seed, and industrial use was lowered 10 million bushels but ethanol remained unchanged at 3.7 million bushels.

Money FarmHowever, market analyst Mike Krueger from The Money Farm says that may change next time around. “Ethanol production has been slightly stronger than people expected,” Krueger said during a conference call for the Minneapolis Grain Exchange today. “I think it will depend on how quickly these VeraSun plants get back on line and running. We still have four months or so left in the marketing year for that to happen.”

The lower ending stocks for corn means higher projected prices for the year. USDA is now forecasting the 2008/09 season-average farm price for corn will be $4.00 to $4.40 per bushel, up 10 cents on both ends of the range. This compares with the 2007/08 record of $4.20 per bushel.

corn, Ethanol, USDA

CBO Report Not All Bad for Ethanol

Cindy Zimmerman

A new Congressional Budget Office report shows other factors actually had a bigger impact on food prices last year than ethanol did and that ethanol is reducing greenhouse gas emissions.

CBOMost media reports have focused on the findings in the report, “The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions,” that from April 2007 to April 2008, the rise in the price of corn resulting from expanded production of ethanol contributed between 0.5 and 0.8 percentage points of the 5.1 percent increase in food prices measured by the consumer price index (CPI).

However, the next sentence in the report summary states that over the same period, “certain other factors—for example, higher energy costs—had a greater effect on food prices than did the use of ethanol as a motor fuel.”

In addition, the report notes that ethanol’s effect on future food price inflation is “uncertain because the forces determining that impact move in opposite directions.”


Federal mandates now in place require additional use of ethanol in the future, which would continue to put upward pressure on prices. In contrast, increases in the supply of corn from cultivating more cropland, increasing crop yields, or improving the technology for making ethanol from corn or other feedstocks (raw materials) would tend to lower food prices.

Regarding the emissions side of the equation, the report states that “in the short run, the production, distribution, and consumption of ethanol will create about 20 percent fewer greenhouse gas emissions than the equivalent processes for gasoline. For 2008, such a finding translates into a reduction of about 14 million metric tons of carbon dioxide and equivalent gases (a standard measure of greenhouse-gas emissions).”

Ethanol, Government