New Nebraska Ethanol Board Officers

Cindy Zimmerman

The Nebraska Ethanol Board elected new officers for the new year at the organization’s recent board meeting.

Mike ThedeMike Thede of Palmer was elected Chairman of the board. Thede represents general farming interests on the board and also serves as president of the Howard County Farm Bureau and sits on the United Soybean Board.

Thede said that he is optimistic about the future of ethanol in light of sales figures and the recently renewed mandate for biofuels. “2008 was a record setting year for ethanol sales in Nebraska,” Thede said. “In September, 81% of all motor fuels sold in Nebraska contained ethanol. E10 blends were selling from four to ten cents less per gallon than regular gasoline, which saved Nebraska drivers almost $36 million.”

The other officers include Steve Hanson of Elsie as Vice Chairman and Tim Else of Belvidere as secretary. Hanson is the wheat representative on the board while Else represents sorghum producers.

Ethanol, News

Alternative Energy in Inaugural Address

Cindy Zimmerman

ObamaAmong the challenges outlined by President Barack Obama in his inaugural address today was a nod to the need for alternative energy sources in our nation.

“We will harness the sun and the winds and the soil to fuel our cars and run our factories,” the new president said as part of his paragraph on “work that needs to be done” in America.

President Obama also noted that “each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet,” which highlights two reasons to continue on the road to domestic fuel – energy independence and the environment.

Last week, Obama outlined his American Recovery and Reinvestment Plan, which includes doubling the production of renewable energy over three years, creating jobs in the development of new energy technologies and increasing the energy efficiency of millions of American homes. Now that he is in office, the challenge will be to implement that plan.

Energy, Ethanol, Government, News

Book Review – A Declaration of Energy Independence by Jay Hakes

Joanna Schroeder

I was recently visiting the La Brea Tar Pits in Los Angeles, a museum focused on one of the largest dinosaur finds in California. And I couldn’t help but think of where oil comes from.

Dinosaurs = oil.
No more dinosaurs = no more oil

La Brea Tar Pits

Not exactly. As pointed out in the article “20 Things You Didn’t Know About Oil” (Discover magazine July 2008), “If you are a creationist, crude oil was formed by thousands of years of heat and pressure applied to the carcasses of plants and animals that died in the Great Flood. If you’re not, you think oil comes from dinosaurs, right?”

Okay, so regardless of where oil comes from we’re not getting more. So let’s get a grip and learn about how we can reduce our nonrenewable fossil fuel use.

A Declaration of Energy IndependenceEnter A Declaration of Energy Independence written by Jay Hakes. Throughout the book, Hakes identifies seven solutions that can “help reduce dependence on foreign oil, strengthen the economy, and reduce emissions of greenhouse gases.”

This was a good read. Hakes set his book apart from others by not giving a history lesson on the Middle East but giving us a much needed history lesson on America’s energy security efforts –the good the bad and the ugly.

It’s interesting to note that Hakes has been criticized for including global climate change in a book about energy security. However, Hakes points out rather convincingly (as does Thomas Friedman in Hot, Flat and Crowded) that energy independence and global climate change go hand-in-hand. It is irresponsible to develop an energy plan that remains dependent on fossil fuels especially when fossil fuels are the largest contributor to global climate change.  Read More

book reviews

Feds Give Cape Cod Wind Project Thumbs Up

John Davis

offshore_wind_turbineA 130 giant wind turbine project planned for off the shore of Cape Cod, Massachusetts has received the green light from a key federal agency, but it still faces some opposition from one of its powerful neighbors.

This story from the Boston Herald says the U.S. Department of the Interior’s Minerals Management Service has given a preliminary approval to the $1 billion Cape Wind project calling it a “milestone” for offshore wind energy:

The decision was expected because a draft MMS report last year had already signaled the agency’s favorable view toward the project, which calls for 130 giant wind turbines in Nantucket Sound, costing more than $1 billion.

But there was some doubt that the MMS’s final report could be issued before President George Bush left office and before opponents, including some Massachusetts congressional members, could possibly torpedo the project.

Now MMS has release its long-awaited final draft – and it will go through a 30-day review.

Cape Wind still needs to get other government permits. But MMS’s OK is considered crucial.

Critics have bitterly denounced the Cape Wind project as spoiling one of the most scenic off-shore sites in America. They’ve also said it’s an unnecessary blight just a few miles off the coast, considering new technology is emerging that could locate wind farms farther out to sea.

Ironically, one of the biggest opponents of the project is Sen. Ted Kennedy (D-Massachusetts), who is a close ally of President-elect Barack Obama… who recently said that wind energy and other renewables are key to the nation’s economic recovery (see my post from January 16, 2009). Maybe those two should talk.

Government, Wind

Iowa’s E85 Sales Hold Steady in 3rd Quarter 2008

irfaThe Iowa Renewable Fuels Association (IRFA) has announced that E85 sales in Iowa remained strong during the third quarter of 2008 despite rapidly falling gasoline prices. According to the Iowa Department of Revenue, sales of E85 by Iowa retailers reached 2,208,837 gallons during July, August, and September of 2008 – more than double the 1,270,587 gallons sold during the same period in 2007.

“Despite a narrower gap between E85 and regular gasoline prices at the end of last year, E85 sales remained strong,” said IRFA Executive Director Monte Shaw. “I talked with several retailers that had seen some customers switch from E85 to E10, but they stated that many preferred the home-grown, renewable fuel. E85 is a premier product that many consumers seek out because of their concerns over energy security and global climate change. As gasoline prices head back toward $2 a gallon, E85 remains a great choice for consumers – not just for energy security and the environment, but for the pocketbook as well.”

Iowa currently has 116 public and private E85 outlets. A list of all the E85 stations can be found at www.e85refueling.com. Retailers interested in installing an E85 pump can apply for a grant from the Iowa Department of Economic Development. Information and a grant application may be found at: www.iowalifechanging.com/business/renewablefuels.html.

blends, E85, Ethanol, Flex Fuel Vehicles, News

Ethanol Plants to be Auctioned

Cindy Zimmerman

Less than one year after the merger of VeraSun Energy and US BioEnergy, seven of the ethanol plants acquired in the merger are scheduled to be sold at auction.

VeraSunThe auction will take place between March 16 and March 31. The merger of the two companies was final on April 1, 2008.

US BioenergyPlants to be auctioned include two in Nebraska, two in Iowa and one each in North Dakota, Minnesota and Michigan – all were originally owned by U.S. BioEnergy. The only former U.S. BioEnergy plant not included in the auction is the Marion, South Dakota facility because it is backed by a different lender, but it is currently idle. In fact, only four of VeraSun’s 17 plants are still producing ethanol at this point.

Potential buyers for the plants are staying confidential, but all eyes are on POET. Last week, POET CEO Jeff Broin said they were “in talks with several companies” when he was asked about future acquisitions. “POET today is considering all its options,” Broin said during the press conference to announce the start-up of their pilot cellulosic facility. “We have been looking at acquisitions of many facilities over the past six months.”

The VeraSun plants are being auctioned as as part of a bankruptcy financing agreement with lender AgStar Financial Services to provide an additional $30 million in debtor-in-possession financing to VeraSun.

Ethanol, News

Boulder Goes For 90% Ethanol, Biodiesel Vehicles

John Davis

boulderThe vast majority of city government vehicles in Boulder, Colorado will run on biodiesel or ethanol within the next few years, if city planners have their way.

This story from the Boulder Daily Camera says that the city hopes to raise last year’s goal of 60 percent of new vehicles purchased running on alternatives to 90 percent this year:

Given that the fleet’s average vehicle age is seven years, that means that within just a few years, the overwhelming majority of the vehicles the city owns will either be hybrids or capable of getting by on biodiesel or ethanol.

Just a couple of years ago, [Joe Castro, who manages Boulder’s fleet] said, finding alternative-fuel versions of some cars was tough. When gas prices hit their peak over the last year, he said, that started to change.

“Now that more manufacturers are providing alternative fuel vehicles, we can cover a lot more of our needs,” he said. “Prior to 2009 we had a hard time finding light-duty trucks with alternative fuel options. In 2009, you’re seeing a lot more light-duty trucks with E85 ethanol” — that is, gasoline that’s 85 percent ethanol.

The city’s fleet includes cars and trucks that are hybrids or vehicles that burn ethanol or biodiesel — a version of diesel that’s generated from organic sources such as vegetable oil.

The article goes on to say that while some critics have tried to knock ethanol, the city officials have analyzed the benefits and found that it’s the best alternative to non-renewable petroleum.

Biodiesel, Ethanol, News

Ethanol Plant Offers Barley Bonuses

Cindy Zimmerman

A Virginia-based ethanol plant is offering incentives for regional farmers to produce barley for biofuel.

Osage Bio EnergyOsage Bio Energy will award $1,000 to the farmers in each of seven states with the highest barley yield per acre. The top producer of the Barley Bin Builder Yield Contest will receive the grand prize of a GM FlexFuel pickup truck.

Barley“Osage Bio Energy’s barley feedstock approach provides a substantial opportunity for local farmers and viable sources of ethanol in the Southeast and Mid-Atlantic,” said Joel Stone, Chief Operating Officer of Osage Bio Energy. “And GM’s dedication to the flex-fuel vehicle market makes it an ideal partner for the yield contest.”

Farmers in the states of Delaware, Maryland, Virginia, Kentucky, Tennessee, North Carolina and South Carolina are eligible to participate in the competition. Perdue AgriBusiness and the Virginia Farm Bureau Federation are cosponsoring the contest with Osage Bio Energy. To get information out to farmers, Osage Bio Energy is sponsoring a farmer survey on its website, as well as attending grower meetings throughout the region.

Ethanol, Farming, News

Biodiesel Not to Blame for MN Bus Problems

John Davis

Officials in Minnesota say that biodiesel is not to blame for stalling school buses in the bitter, bitter cold of Minneapolis. After temperatures… without the wind chill… dropped to -20 to -30 degrees F, the Bloomington School District had to cancel classes, in part, because a dozen buses wouldn’t start.

frozenbiodieselThe bus company was quick to blame biodiesel, required by the state to be run in the buses. But this story from Minneapolis TV station KSTP says the cold is the real culprit:

State officials say all diesel fuel gels up in cold temperatures.

Bill Walsh with the Minnesota Department of Commerce said, “It really has nothing to do with the biodiesel. It’s a diesel fuel issue in the winter and cold weather.”

Officials add condensation getting into storage tanks or a bad blend of biodiesel could have also contributed to the problems.

Biodiesel

Obama Makes Case for Wind & Other Renewables

John Davis

obama31An Ohio wind-turbine parts factory was the backdrop today as President-elect Barack Obama made his case to include renewable energy in his economic-stimulus package.

The Wall Street Journal reports Obama made his push at the Cardinal Fastener & Specialty Co. in a Cleveland suburb:

Mr. Obama has pledged to double over three years the amount of U.S. wind, solar and geothermal generating capacity, which is currently around 25,000 megawatts. In a down payment on that effort, House Democrats unveiled an economic-stimulus package Thursday that calls for $20 billion of tax cuts for renewable-energy production and an additional $54 billion of spending to modernize the country’s aging electricity grid, and to make homes, vehicles and buildings more energy efficient. For wind power, the bill would extend by three years a production tax credit currently set to expire at the end of 2009.

On Friday, Mr. Obama tried to connect spending on energy with American jobs, noting that his hosts, Cardinal Fastener & Specialty Co., hired two people this week. Mr. Obama said passage of the stimulus plan is critical to helping companies that don’t have access to financing because of frozen credit markets. He said that half the wind projects planned for the U.S. this year could be abandoned without federal aid, and that other countries, including Spain, Germany and Japan, are investing in renewable energy and “surging ahead of us.”

“A renewable-energy economy isn’t something pie-in-the-sky, it’s not part of a far-off future,” Mr. Obama said. “It’s happening all across America right now. It’s providing alternatives to foreign oil now. It can create millions of additional jobs and entire new industries if we act right now.”

A recent survey shows that Americans strongly support the stimulus plan. While some skeptics point out that there’s not enough manufacturing capacity to build all the wind turbines needed for Obama’s goal, it seems to me that a boost from the government would change that… and the goal would be met.

Government, Solar, Wind