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

USDA Provides Loan for Cellulosic Ethanol Plant

Cindy Zimmerman

In one of his last official acts as Secretary of Agriculture, Ed Schafer announced today that USDA Rural Development has approved the first ever loan guarantee to a commercial-scale cellulosic ethanol plant.

Range FuelsUnder the Biorefinery Assistance Program authorized by the 2008 Farm Bill, USDA will provide an $80 million loan to Range Fuels of Soperton, Georgia. When fully operational in 2010, the plant is expected to produce approximately 20 million gallons of cellulosic ethanol per year from wood and dedicated energy crops.

“The investment in this facility – which will make cellulosic ethanol from wood chips – has the potential to significantly advance the timetable for second generation ethanol production in this country,” Schafer said. “I visited the pilot plant last October and was excited to see how well the technology works. The funding announced today helps the Bush administration fulfill its commitment to reduce America’s dependence on foreign oil by developing alternative, renewable energy sources.”

The Biorefinery Assistance Program promotes the development of new and emerging technologies for the production of advanced biofuels – defined as fuels that are not produced from food sources. The program provides loan guarantees to develop, construct and retrofit viable commercial-scale biorefineries producing advanced biofuels. The maximum loan guarantee is $250 million per project.

Cellulosic, Ethanol, Government, News

New Year Brings Requirement for Labeling New Cars

caepa_stickerAccording to the California Air Resource Board (CARB), a division of the California Environmental Protection Agency, beginning Jan. 1, every 2009 model year and newer car built for sale in California is be required to carry a label that clearly ranks the vehicle’s environmental impact (see example left).

The label will show the simple ranking system that provides consumers practical information that can help them choose the most environmentally friendly vehicle that still meets their transportation needs.

“This label will arm consumers with the information they need to choose a vehicle that saves gas, reduces greenhouse gas emissions and helps fight smog all at once,” said ARB Chairman Mary Nichols. “Consumer choice is an especially powerful tool in our fight against climate change.”

The environmental performance label will have two scores on a scale of 1-10, a Smog Score and a Global Warming Score. The average new car will score five on both scales. The higher the score the more environmentally friendly the car is . The California Air Resources Board also hosts a consumer web site, www.DriveClean.ca.gov, that provides information on the cleanest, most efficient cars on the market.

Car Makers, Energy, Environment, Government, News

Biodiesel Leads ASA’s Priorities to Obama

John Davis

asa_logo1Less than a week before the inauguration, the American Soybean Association (ASA) has given President-elect Barack Obama a list of its 2009 policy priorities… and biodiesel tops that list.

This press release from the soybean advocacy group has details:

“ASA looks forward to working closely with the Obama Administration to achieve these policy priorities, which not only make sense for soybean farmers, but also benefit our entire country through reduced dependence on foreign oil, job creation, increased U.S. exports and a modernized infrastructure system,” said ASA President Johnny Dodson, a soybean producer from Halls, Tenn.

Highlights of ASA’s priorities as submitted to the Obama Administration are as follows:

● Biodiesel: ASA’s top policy priority for 2009 is long-term enactment of the biodiesel tax credit before it expires on December 31, 2009. The biodiesel tax incentive and Bioenergy Program payments make U.S. biodiesel producers more competitive with petroleum-based diesel and with biodiesel imports, which benefit from foreign government subsidies. Biodiesel production reduces U.S. dependence on foreign oil while creating jobs and demand for homegrown renewable soybean oil.

The group is also supporting regulations for biodiesel that pay on all gallons, not just incremental production, under the Bioenergy Program for Advanced Biofuels.

Biodiesel, Government

Iowa Firm Wins Biodiesel Marketing Award

John Davis

keckenergy2A Des Moines, Iowa-based distributor of biodiesel has won that state’s Secretary of Agriculture award for biodiesel marketing.

This press release from Secretary Bill Northey says Keck Energy is the biodiesel winner of 2009 of the Secretary’s Biodiesel and Ethanol Marketing Awards (see Michelle’s post for the ethanol winner):

Mark Meyer of Keck Energy of Des Moines is the 2009 Secretary’s Biodiesel Marketing Award winner for their efforts to expand the availability of biodiesel and promote it’s usage by their customers. Meyer is President of Keck Energy and has worked to promote biodiesel usage at both the wholesale and retail level.

In particular, Meyer and Keck Energy have been involved on the ground level in preparing for and responding to the issues facing biodiesel and other biofuels.

Iowa is the nation’s leader in biodiesel production with 14 refineries cranking out nearly 318 million gallons of biodiesel each year.

Biodiesel