Latest 2008 Ethanol Production Estimates

Cindy Zimmerman

Ethanol production for 2008 is still expected to have exceeded the goal of nine billion gallons for the year, but not by as much as anticipated. While the industry was on track to produce about ten billion gallons for the year, the latest figures for November indicate it will be more like 9.1 billion.

According to the Energy Information Administration (EIA), American ethanol facilities averaged 668,000 barrels (about 28 million gallons) per day. That’s about 8 million gallons per day more than November of 2007. Through November, the ethanol industry was averaging 596,000 b/d of production – which would mean about 9.1 billion for the year if December holds up to the average.

RFAThe Renewable Fuels Association reports that demand continued to outpace production for ethanol in November by about 15,000 barrels per day. Average ethanol demand for the year through November 2008 was over 26 million gallons per day.

According to RFA, the recent economic troubles have had an impact on America’s ethanol industry as they have every other sector of the American economy and they estimate that approximately 1.8 billion gallons of production capacity is currently idled.

Ethanol, News, RFA

Oregon Biodiesel Standard to Start in September

John Davis

oregondeptofagOregon could become the latest state to mandate that every gallon of diesel sold in the state have a 2 percent biodiesel blend.

As you might remember from my post last August 29, the state has a new five-million-gallon-a-year biodiesel plant run by Sequential Pacific Biodiesel, and five-million gallons is the threshold for Oregon’s mandate to kick in. This article in the Burns (OR) Times Herald says the state Department of Agriculture and Oregon Department of Energy are letting motorists know they expect the actual production to hit that mark this coming September:

“The most important thing for motorists to know is that they shouldn’t see any change to their fuel economy or their vehicle’s performance when using a 2 percent biodiesel blend,” said Stephanie Page, ODA’s renewable energy specialist.

House Bill 2210, which established Oregon’s renewable fuel standards, passed in the 2007 legislative session and was signed into law. When in-state biodiesel production, using materials from Oregon, Washington, Idaho and Montana, reaches five million gallons per year, the renewable fuel standard for biodiesel kicks in.

With the expansion of SeQuential Pacific’s biodiesel manufacturing facility in Salem, that capacity is expected to be reached sometime this summer. Ninety days after the trigger has been reached, the standard requires that only 2 percent biodiesel blends be sold. By fall, it’s likely that every licensed Oregon gas station that carries diesel must sell the 2 percent blended fuel.

The implementation of the biodiesel requirement follows last year’s implementation by ODA of the renewable fuel standard requiring 10 percent ethanol in gasoline sold in Oregon. About 1.5 billion gallons of gasoline are sold in Oregon each year and about a half billion gallons of diesel. Even though the biodiesel requirement will affect far fewer motorists, state officials want to get the word out.

Officials went on to caution retailers and wholesalers that they should clean and prep their storage tanks before receiving the blended diesel.

Biodiesel, Government

Farm Foundation to Hold Wind Energy Forum

John Davis

farmfoundationforumWind energy is an important resource for the country, and our friends at Farm Foundation are sponsoring another important conversation on the subject.

The Farm Foundation Forum: Wind Energy Issues and Challenges will be held Tuesday, February 10, 2009 from 9 to 11 am (coffee starts at 8:30 am) at the National Press Club, 529 14th Street NW, in Washington D.C.:

Presenters will be: Ian Baring-Gould, National Renewable Energy Laboratory; Peggy Beltrone, Commissioner, Cascade County, Montana; Mark Willers, MinWind, Luverne, Minn.; and John Holt, National Rural Electric Cooperative Association.

There is no charge for attending, and everyone is invited. As always, Farm Foundation hopes to get a wide variety of opinions at this forum to make sure they’re hearing real solutions… not just everyone singing from the same page. These conversations are challenging, because these days we really need ideas that challenge the norm.

If you want to attend, please RSVP by noon CST, Friday, Feb. 6, to Mary Thompson, Farm Foundation Director of Communications, mary@farmfoundation.org.

Farm Foundation, Wind

NEVC Elects New Board Members at Annual Meeting

nevcThe National Ethanol Vehicle Coalition (NEVC) recently elected five new members to three years terms on their Board of Directors. New members include: Shirley Ball of Ethanol Producers and Consumers ((EPAC) Ms. Ball was re-elected to an additional 3 year term); Don Borgman of John Deere; Tom May of MFA Oil Company; Dave Weber of Abengoa Bioenergy Trading; and DeVonna Zeug of the Minnesota Corn Growers Association.

“It is a privilege for MFA Oil to have a retailer’s voice at the table with the rest of the valued stakeholders in the efforts to reduce our dependence on foreign oil, have cleaner emissions from our transportation sector and bring economic value to our country thru the NEVC’s continued efforts to promote higher level blends of ethanol,” said Tom May, director of marketing for MFA Oil Company. MFA Oil Company operates more than 50 E85 fueling stations throughout the Missouri, Iowa and Arkansas.

The NEVC also elected officers for 2009: Bernie Punt, general manager of Siouxland Energy and Livestock Cooperative of Sioux Center, Iowa will serve as the Board Chairman. Elected as Vice-Chairman was Dwayne Siekman, executive director of the Ohio Corn Growers Association. Scott Negley, director of North America Product Management of Dresser Wayne will be serving as Secretary of the NEVC. Finally, DeVonna Zeug, a corn and soybean farmer from Walnut Grove, Minnesota, will serve as Treasurer representing the Minnesota Corn Growers Association.

“We are pleased to welcome these industry leaders as new NEVC board members,” noted Chairman of the NEVC Bernie Punt. “The NEVC provides the opportunity of bringing together a group of stakeholders that can offer unique views while working together to promote high level blends of ethanol fuel in flexible fuel vehicles. We look forward to working with each of them in advancing this goal.”

E85, Equipment, Ethanol, John Deere, National Ethanol Vehicle Coalition, News

Biodiesel is Part of a Mickey Mouse Operation

John Davis

That headline is not a slap to the green fuel. Biodiesel made from what would be waste is now fueling the trains at one of America’s most beloved theme parks.
disneytrain
This story from Orange County (CA) Register says Disneyland is now using the leftover grease from its restaurants to power its trains:

On Wednesday, the five Disneyland Railroad trains that circle a one-mile perimeter of the park began running on cleaner burning biodiesel made with oil that comes from the resort’s restaurants and hotels.

Park officials had tried a soybean-based biodiesel starting in 2007, but had to give up on that in November 2008 because of problems storing it underground.

So they regrouped while the trains went back to regular diesel fuel, then came up with the idea of recycling discarded cooking oil and turning into biodiesel for the trains.

“The improvement here is that it’s no longer using food for fuel. There are no soybeans grown in the Midwest to fuel our trains, just cooking oil that we’re already generating,” said Frank Dela Vara, Disney’s director of environmental affairs.

Barrels of discarded oil – which resembles maple syrup – are shipped to the Coachella Valley, mixed with a small portion of diesel fuel, then shipped back to Disneyland.

Park officials eventually want to run the Mark Twain paddlewheel steamboat, some cleaning equipment and light towers on the french-fry grease biodiesel.

Biodiesel

Extreme Bentley to Run on Biofuels

John Davis

British carmaker Bentley is known for its high-end, performance vehicles that will set you back some green. Now, the company is introducing a car that will run green.

bentleybiofuel1
The photo above of the “extreme Bentley” is just a sneak peak at its latest speed demon… one that will run on ethanol. From the Bentley Web site:

On March 3rd at the 2009 International Geneva Motor Show, Bentley will reveal its fastest, most powerful production car ever.

Delivering supercar performance, this new model is very much the extreme Bentley.

Importantly, it will be capable of running on biofuel, delivering on a key component of Bentley’s environmental commitment and pioneering the use of this fuel in the luxury sector.

Maybe I should talk Chuck and Cindy into sending me to Geneva for the March auto show so I can test it for myself. Or, just rent me one of these bad boys for a test-driving year or so! The sacrifices I would make just to bring you the best information.

Car Makers, Ethanol, News

Unlocking Genome Unlocks Sorghum’s Ethanol Potential

John Davis

Scientists have mapped the genome of sorghum, and the discovery could open the door for even greater use of the crop in biofuel, especially ethanol, production.

This story from the USDA’s Radio Newsline says since sorghum grows in drier climates and is more resistant to disease than corn, researchers are looking at ways to transfer some of sorghum’s traits over to corn.

messingRutgers University molecular scientist Joachim Messing says the discovery could allow a more efficient use of corn. “And we wouldn’t have the competition between using corn for feed and food and biofuels.”

Messing says the use of cellulose from corn stalks to make ethanol has required an extra step to turn it into ethanol. But sorghum already has a sugar that can be fermented into ethanol, making a more effective biofuel feedstock.

Ethanol, News, Research

Communicating Renewables Summit Set

Cindy Zimmerman

Communicating RenewablesA summit aimed at helping renewable energy professionals communicate the good, green news about this growing industry is coming up this April in Minneapolis. This timely event is the first of it’s kind dedicated specifically to the success of communicators working in the alternative energy industry.

The Communicating Renewables Summit 2009 will feature presentations on topics such as, How to Develop Effective Media Relationships; A Strategic Approach to Fundraising; Pit Bull Media Tactics; Green Noise; Social Media: The New Range War?; Unification of Messages Through Coalition Building; A Reality Check: What Consumers Really Think of Green; and much more.

The event will be held April 21-23 at the Hotel Minneapolis. Registration is now open and more information can be found here.

Domestic Fuel is proud to be a sponsor of this event to help encourage more effective communications for the alternative energy industry.

Biodiesel, communications, conferences, Energy, Ethanol

Stimulus Bill’s Alt Energy Provisions Survive House Vote, Need Senate Support

John Davis

uscapitol1Pres. Obama’s economic stimulus bill passed the U.S. House, but its provisions that will help renewable energy, especially solar and wind power, are still in jeopardy unless lawmakers in the Senate and House can get together on their differences in their two versions of the bill.

This story from Greentech Media says the biggest difference in the two bills deals with allowing renewable energy projects to get direct payments instead of tax credits, a provision which solar and wind power industry groups say will be critical to jump-start funding:

Along with a host of plums for renewable energy – $8 billion in loans for renewable energy power generation and transmission projects and $2 billion for energy efficiency and renewable energy research – the House version of the stimulus bill contained a provision to convert investment tax credits that solar power developers rely on into direct payments to investors for the next two years.

Under the provision, the Department of Energy would pay grants equal to the amount of tax credits – 30 percent of qualifying costs of a project – directly to renewable power developers. The problem with using tax credits to lure investors today is that Wall Street banks and other renewable energy investors that saw big losses last year don’t have taxable income to offset, and thus no appetite for them.

Adding the DOE program would be a huge boon to a renewable energy sector that’s seen both debt and equity financing for projects dry up in the past few months, industry leaders say. Last year saw about $5.5 billion in tax equity deals, but without changes to the way the credit works, that could fall to $2 billion to $4 billion – and that for a solar industry expected to need more than $10 billion for projects in 2009.

But a version of the bill now being circulated in the Senate doesn’t contain the DOE grant provision, Chris O’Brien, head of North America market development for Swiss solar equipment maker Oerlikon Solar, said Wednesday.

Of course, the bills have to be reconciled before anything can go to the president for his signature. Plenty of us will be watching to see what happens.

Biodiesel, Ethanol, News, Solar, Wind

Biodiesel Board Previews Conference

John Davis

nbb-conf-091This weekend is the beginning of the 2009 National Biodiesel Conference & Expo in San Francisco!

Just before he heads out to the conference bright and early Thursday morning, I caught up with National Biodiesel Board Chief Operating Officer Donnell Rehagen, as he was hurrying around NBB headquarters, putting the finishing touches on the details for the four-day conference.

rehagenI’ve got to tell you, he’s really excited about holding the premier event for biodiesel in San Francisco… a city known for its support of biodiesel. In fact, nearly the entire municipal fleet runs on B20.

As always, those attending will have plenty of chances to hear from a wide variety of experts in production, marketing, regulatory issues, and of course, sustainability. In fact, there’s a Sustainable Biofuels Summit starting a day early, Saturday.

But not everything’s strictly business. There’s a golf tournament and a couple of entertainment superstars to see as well. Rocker Melissa Etheridge and actress Daryl Hannah, both big backers of biodiesel, will be at the conference.

Donnell says there’s still time for you to sign up and attend. You can do it through the conference Web site or in person at San Francisco’s Moscone Center starting Sunday, running through February 4th.

You can hear my entire interview with Donnell here: [audio:http://www.zimmcomm.biz/nbb/Rehagenintvw.mp3]

Biodiesel, Biodiesel Conference