Economist Says Biofuels Demand Will Drive Crop Prices

Cindy Zimmerman

An agricultural economist speaking to members of the nation’s largest general farm organization meeting in San Antonio this weekend said crop prices this year will be driven by demand for biofuels.

AFBF 09 conventionJim Sullivan of Informa Economics in Washington, D.C. told a crop outlook seminar at the American Farm Bureau Federation 90th annual meeting that the global recession will mean weakening demand for corn and soybeans this year, except when it comes to ethanol and biodiesel.

“The only demand increase we can expect to see for corn this year and next year will be corn used for ethanol,” Sullivan said, while biodiesel will be the top demand driver for soybeans. He expects commodity prices for both corn and soybeans to be lower in 2009.

Biodiesel, corn, Ethanol, Farming, News

Obama Economic Speech Highlights Alt Energy Plans

John Davis

obama3This week’s major economic speech from President-elect Barack Obama pointed out how ethanol and biodiesel, as well as other alternatives to conventional energy sources, will be key to the nation’s economic recovery.

This article from the New York Times says the plan also pushes energy efficiency:

“To finally spark the creation of a clean energy economy, we will double the production of alternative energy in the next three years,” Mr. Obama said in a speech at George Mason University in Virginia. “We will modernize more than 75 percent of federal buildings and improve the energy efficiency of two million American homes, saving consumers and taxpayers billions on our energy bills.”

Mr. Obama also said that the nation must begin building a “smart grid,” which he said would make the country less vulnerable to blackouts or even attacks, in addition to saving money and aiding renewable energy.

The article goes on to point out that green energy jobs have been a longtime priority for Obama since the earliest days of his candidacy.

Biodiesel, Ethanol, Government, News

Biodiesel Board Sure Industry Will Meet RFS

John Davis

nbb-logo2In an effort to quell skepticism over the renewable energy industry’s chances to meet the 10.5-billion Renewable Fuels Standard in 2009, the National Biodiesel Board has reaffirmed its industry’s ability to hold up its end of the deal… and then some.

The NBB released a statement saying not only will biodiesel meet its goal, but it will make up any shortfall by its ethanol brethren:

feraci“The U.S. biodiesel industry’s contribution to the nation’s fuel supply will help ensure that the RFS targets for 2009 will be met,” said Manning Feraci, NBB’s Vice President of Federal Affairs. “In 2008 alone, the U.S. biodiesel industry produced nearly 700 million gallons of biodiesel, which equates to 1.05 billion ethanol equivalent gallons for purposes of the RFS.”

Currently, there are 176 plants in operation with the capacity to produce more than 2.61 billion gallons of biodiesel. In 2008, the U.S. biodiesel industry supported nearly 52,000 jobs in all sectors of the economy. This added $4.287 billion to the Gross Domestic Product (GDP); displaced 38.1 million barrels of petroleum; generated $866.2 million in tax revenue for federal, state and local governments; and reduced greenhouse gas emissions by 11.28 tons, the equivalent of removing 980,000 vehicles from U.S. roads.

Biodiesel

Outgoing Ag Secretary Notes Biofuel Gains

Cindy Zimmerman

The outgoing U.S. Secretary of Agriculture listed advancements in the renewable fuels industry among the accomplishments of the Bush administration over the past eight years.

Ed SchaferSpeaking to reporters this week, Secretary Ed Schafer noted that growth in ethanol and biodiesel production have helped create “remarkable prosperity and growth in the agriculture economy” during the Bush administration.

“Looking to the future, we know that economic growth in rural American and energy security for our nation as a whole will both depend on further development of renewable fuels and for biofuels to reach their full potential we must develop new biomass feedstocks and the business models that go with them,” Schafer said. “The new Farm Bill puts us on the right road by providing $1 billion to help fund this effort, but continued public support will be needed.”

Schafer is hoping that before he leaves office he will be able to check off one more item on his “to do” list – awarding a loan guarantee for the construction of a commercial cellulosic ethanol facility that would produce 100 million gallons a year from wood chips and waste. “We’re trying to get it out the door before we leave,” Schafer said. “This is a huge move forward to United States’ energy independence and increased economic activity in rural markets.”

Schafer believes that making that investment and getting a major cellulosic ethanol facility in operation will jump start the movement to second generation biofuels.

Cellulosic, Ethanol, News, USDA

Continental Joins Biodiesel Flight Club

John Davis

continentalLess than two weeks after Air New Zealand took to the air in a flight powered by jatropha-based biodiesel, American carrier Continental Airlines has used a combination of the the weed and algae to fuel one of its 737s.

This story from the Los Angeles Times has details:

The two-hour test flight over Houston, where the carrier’s headquarters is located, involved powering one of the two engines with a mix of 50% kerosene and a blend of fuel derived from algae and jatropha, a weed that bears oil-producing seeds. No passengers were on board.

The demonstration flight was the first by a U.S. carrier. It was the latest among a handful of airlines that are testing a new generation of so-called sustainable biofuels that could help airlines cut fuel costs and reduce carbon emissions.

Later on this month, Japan Airlines is scheduled to join the biodiesel-friendly skies using Montana-grown camelina biodiesel.

Biodiesel

Biodiesel, Ethanol Friend Leaving Senate

John Davis

bondU.S. Sen. Christopher “Kit” Bond, a longtime friend of renewable and clean energy efforts, has announced he will not seek re-election in 2010.

During his nearly 40 years of elected service as Missouri’s State Auditor, the state’s youngest governor and a U.S. Senator (which he served an amazing four, six-year terms), Bond has been a great advocate for green fuels.

The National Biodiesel Board offered these thoughts
on Bond’s upcoming departure:

“Senator Bond is a model for the kind of strong leader and courageous public servant that our country needs,” said Joe Jobe, CEO of the NBB. “Senator Bond has been a pioneering leader for renewable energy and has contributed greatly to the progress our country has made so far.”

“Senator Bond’s work helped give birth, strength, and support to this emerging industry which is responsible for bringing an estimated 20,000 green jobs and over 700 million gallons of domestic renewable fuel to the fuel supply,” Jobe said.

Bond picked up the NBB’s National Energy Leadership award in 2001.

As for ethanol, last August at the Missouri State Fair, Bond had this to say:Read More

Biodiesel, Ethanol, News

Biodiesel Board Gets New Spokesperson

John Davis

nbb-logoThe National Biodiesel Board is welcoming a new face to its great communications team.

This NBB press release announces the addition of Jessica Robinson, a veteran communicator, as the group’s Senior Communications Specialist:

robinsonRobinson has been involved in the communications industry for more than a decade, most recently serving as Press Secretary for Missouri Governor Matt Blunt when the state adopted a ten percent ethanol standard, and for the first time began fully funding biodiesel incentives. Robinson has worked in radio and television news stations in New Mexico, Missouri and Florida. She is a graduate of the University of Missouri’s School of Journalism.

“Jessica’s experience as a communications professional and spokesperson will help build on NBB’s progress combating many of the industry inaccuracies that arose in the past year,” said Jenna Higgins Rose, NBB Director of Communications. “I’m confident that Jessica will be an outstanding addition to our communications team as the biodiesel industry continues to grow.”

Personally, I’ve known Jessica for many years… from my earliest days of when I first moved to Missouri nine years ago… just about as long as I’ve known Chuck and Cindy Zimmerman. She’s a straight shooter who’s not afraid to be a strong advocate for the cause she’s behind. Trust me folks, she’s a BIG catch for an organization that’s on the rise.

Good luck and welcome aboard, Jessica!

Biodiesel

Incentive Now Available in MI for E85 and Biodiesel Infrastructure

michigan-policy-networkIn addition to Federal tax credits, Michigan fueling station owners can now receive 30 percent up to $20,000 to install E85 or biodiesel. Rep. Joel Sheltrown introduced House bill 5878’08 in March 2008, and it was signed into law on December 30 of last year.

This tax credit will be available from January 1, 2009 until December 31, 2012. A certificate of approval from the Energy Office of Michigan must first be obtained prior to taking the credit. One million dollars can be distributed each year through this credit. A station must sell the alternative fuel product for at least three years or the entire credit must be repaid.

Josh Clayton, owner of H & H Mobil in East Lansing, Michigan installed E85 in 2007. He admits that he and other station owners across the state have been underwhelmed by the profits being brought in by E85 and biodiesel fuel pumps, but he still counts himself as a “huge advocate of ethanol” and thinks its development is positive for Michigan.

There are currently 92 E85 stations throughout the state of Michigan.

Biodiesel, E85, Ethanol, Facilities, News

Cellulosic Ethanol Company Raises Capital

Cindy Zimmerman

A company claiming to have the capability to produce “third generation” ethanol has raised $34 million to prove it.

ZeachemColorado-based ZeaChem is developing a cellulose-based green fuels and chemicals biorefinery platform that converts renewable non-food biomass into market-competitive products such as ethanol. The new funds will be used to build ZeaChem’s first cellulosic biorefinery set to begin construction this year.

ZeaChem president and CEO James Imbler says the initial funding will allow them “to produce the highest yield, lowest capital cost, lowest carbon footprint bio-based fuels and chemicals benefiting our investors, strategic partners, and our future customers.” Among the investors in ZeaChem is Valero Energy Corporation, the largest petroleum refiner in the United States.

The company technology uses micro-organisms from the digestive tracts of termites as part of the conversion process for making ethanol from wood and other biomass sources.

Cellulosic, Ethanol, News

Study on Biodiesel Antioxidant Treatment Completed

John Davis

regkeminAmes, Iowa-based biodiesel maker Renewable Energy Group Inc. and nutritional ingredient manufacturer Kemin Industries Inc. have finished a study and released the esults of a multi-feedstock biodiesel oxidation.

Biodiesel Magazine reports that for 10 weeks, the companies performed a detailed analyses of oxidative stability characteristics in pure biodiesel (both B100) made from soybeans and a combination of vegetable oil and animal fats:

The research, which was conducted to gain a better understanding of oxidative stability and degradation of multi-feedstock biodiesel in long-term storage, found that in tests simulating extreme storage conditions, oxidative stability decreased rapidly in untreated B100 as measured by oil stability index induction time, Peroxide Value (PV), 1,4-decadienal and Hexanal content.

“Antioxidant treatment delayed these changes,” said Glen Meier, REG manager of research and development, said antioxidant treatment delayed the changes. “Results show that dosage rates will depend on the specific biodiesel product and its feedstock composition, as well as the storage and handling protocols in place.”

In addition, the group determined that late “rescue” treatments did not eliminate secondary oxidation products, even when oil stability index (OSI) induction time could be increased. As well, it was found that oxidation in products measured indicated changes to B100 that may foster polymer and sediment formation in blends and support earlier use of antioxidants to preserve quality.

The research is expected to help petroleum and biodiesel storers prevent oxidative stability problems in less-than-ideal storage conditions.

Biodiesel