ACORE Forum Urges New Ethanol Policies

Cindy Zimmerman

The American Council on Renewable Energy (ACORE) held a two day forum on Capitol Hill last week with hundreds of renewable energy executives, financial experts, and policy makers who remain optimistic about the industry’s future.

ACOREThe 2008 Phase II of Renewable Energy in America National Policy Forum featured Policy recommendations on renewable energy, energy efficiency, sustainable development, the environment and green jobs.

“There has never been a more opportune time to instill the philosophies of Phase II into federal policy,” said Michael Eckhart, President of ACORE. “There is a pressing need for policy stability so that companies have a reasoned basis for making long-term investments in factories and the financial community has confidence making investments in new projects.”

Among those who spoke was POET CEO Jeff Broin, who says the government needs to act within the next six months to increase the amount of ethanol that can be added to gasoline.

Broin warns that the ethanol industry will run into the so-called “blend wall” at 12.5 billion gallons because of the Environmental Protection Agency’s 10 percent ethanol blend limit.

Another speaker, former Senator Tom Daschle, spoke about the progress on biofuels noting that the United States must continue to turn to biofuels and next generation ethanol to reduce our dependence on oil.

Ethanol, News, POET

Propel Offers E85 in Sacramento Area

Propel Fuels has opened their first publiclly accessed E85 facility in the Sacramento area. The Rocklin 76 station is located at 6700 Five Star Blvd. in the city of Rocklin. The station also offers gasoline and biodiesel under their canopy. It is located in a highly traveled shopping and highway area.

Propel builds, owns and operates a growing network of clean fueling points. The Rocklin facility is the first of theirs to offer E85 but the group has six additional sites that offer biodiesel. Seven fueling sites will open soon and will carry biofuels in the cities of Citrus Heights, Sacramento, Elk Grove, Roseville and Placerville. The group’s goal is to provide an easy access to high quality clean fuels, and quantify the positive impact of your fuel choice.

There are now about 13,000 flexible fuel vehicles registered in the Sacramento area.

Biodiesel, E85, Facilities, News

Australia to Offer E85 Compatible Vehicle

GM-Holden will soon be offering its Commodore as E85 compatible in Australia. The group says that biofuels will become a leading alternative fuel for the company.

“We are committed to having locally built Holdens running E85 in the market by 2010,” said GM-Holden managing director, Mark Reuss. “Ethanol is a renewable fuel and the costs are relatively small to modify existing technologies to make it viable. It has great potential, particularly the ability to produce it from waste.”

The company is also in discussions with with biofuels company Coskata in the US to build the first local cellulosic ethanol plant in Australia.

“The key to success will be innovation and an eye for using less foreign oil by increasing efficiency or replacing it altogether with Australian energy alternatives,” Reuss added.

Car Makers, E85, Ethanol, Facilities

Crumbling Infrastructure Hurting Rural Ethanol & Biodiesel Industries

John Davis

Rural America’s infrastructure challenges cut to the heart of the six challenges outlined during this morning’s session of the Farm Foundation’s Food and Agriculture Policy Summit being held in Washington, D.C.

As you might have read on my earlier post over on AgWired.com, this morning, Farm Foundation Pres. Neil Conklin outlined the six major areas of challenges facing agriculture over the next 30 years: 1. Global financial markets and recession, 2. Global food security, 3. Global energy security, 4. Climate change, 5. Competition for natural resources, and 6. Global economic development. Gene Griffin with the Upper Great Plains Transportation Institute at North Dakota State University told the group attending today’s Farm Foundation session that a crumbling rural infrastructure, in particular, the roads, touches each one of these six challenges and threatens to make them even worse.

“The engineers will tell you [the pavements] look OK on the surface, but underneath it is starting to crumble.” Griffin says by the time the damage is clearly noticeable, it costs two to three times as opposed to normal maintenance and repair.

“Just getting the political will of people to pay for systems they want to use… but they’ve gotten used to the idea they don’t necessarily have to pay for it. And I think those are two huge problems.”

Griffin says in his home state, where rural roads are seeing a huge amount of big trucks working the biodiesel and ethanol industries and North Dakota’s burgeoning petroleum industry is also taking a toll, that infrastructure needs the funding… although it might not see the same amount of traffic a higher-density population area would see. He says if the cities want the fuels that are produced in rural areas, we need to develop a system that links the high-density traffic areas with the low-density ones.

He says it comes down to deciding if we’re going to pay for the infrastructure that will help us be more energy independent now at a lower price or at a much higher price… down the road.

Listen to my entire conversation with Gene here: [audio:http://www.zimmcomm.biz/farm-foundation/Griffin1.mp3]

Download the audio here.

Biodiesel, Ethanol, Farm Foundation, News

ADM: We Can Have it All… Food & Fuel

John Davis

The world’s population will grow by 33 percent by the year 2040, but the amount of farmland to feed and fuel that growing demand won’t have to grow by that same one-third… that’s what attendees at the Farm Foundation’s Food and Agriculture Policy Summit in Washington, D.C. heard this morning.

Greg Webb from Archer Daniels Midland gave that optimistic assessment as he told the group increasing efficiencies in production agriculture would help meet the growing demands while adding only a disproportional smaller amount of land to the production mix.

“Agriculture’s role is not one of conflict between food or fuel. It is one that is quite compatible. Producing more food results in more fuel being produced as well.”

Webb says more efficient practices will give farmers, who are already are being pretty efficient compared to just recent history, an even greater opportunity to produce both the food and fuel the world demands, as long policies don’t get in the way.

“We need to have policies that allow those innovations and investments express themselves.”

Webb adds Pres.-elect Obama’s new Cabinet will have a great impact on how those policies play out.

You can hear my conversation with Greg by clicking here: [audio:http://www.zimmcomm.biz/farm-foundation/GregWebb1.mp3]

Download the audio here.

Biodiesel, Ethanol, Farm Foundation, News

Ethanol Fuels Big Three Bail Out Caravan

Cindy Zimmerman

The Big Three auto makers traveled to Washington this week to ask for a bailout in fuel efficient, high mileage cars, including flex fuel vehicles that run on up to 85 percent ethanol.

car makersGeneral Motors’ Rick Wagoner (left) made the trip in a black hybrid Chevrolet Malibu, accompanied by a flex fuel Buick Lucerne, which runs on fuel that is 85 percent ethanol, and the high mileage Chevy Cobalt XFE. “Part of this is being done to showcase fuel-efficient and environment-friendly vehicles,” said GM spokesman Tom Wilkinson.

Ford HybridFord’s Chief Executive Alan Mulally (center) traveled to the nation’s capital in a Ford Escape hybrid, which also runs on up to 85 percent ethanol. No word in the news reports what Robert Nardelli, chairman and chief executive of Chrysler, was driving.

The main reason for the car makers driving to the capitol this week was because of the flack they caught a few weeks ago for flying in on corporate jets with hat in hand to ask for billions in a federal bailout.

Car Makers, E85, Ethanol, Flex Fuel Vehicles, News

Biodiesel Board Blasts Biofuel Plantations Report

John Davis

The National Biodiesel Board is taking exception with a report that seems to equate unsustainable practices to produce biodiesel in some parts of the world with what American biodiesel producers are doing

In a statement from Manning Feraci, Vice President of Federal Affairs at the NBB, the group takes aim at the report titled, “Biofuel Plantations on Forested Lands: Double Jeopardy for Biodiversity and Climate” :

“The U.S. biodiesel industry does not support or condone practices that cause the destruction of sensitive ecosystems such as rainforests in Southeast Asia. In fact, credible science has repeatedly shown that the vegetable oils and animal fats produced in the U.S. and used for biodiesel production are sustainable and significantly reduce greenhouse gas emissions when compared to fossil fuels. This information was unfortunately not acknowledged in this study.

“It is interesting that throughout this study, the authors repeatedly acknowledge shortcomings in the data necessary to make definitive determinations on greenhouse gas emissions. Specifically, the paper notes:

‘Our study has some important limitations. First, the analysis of greenhouse gas emissions contains uncertainties because of necessary assumptions and the limited empirical basis of some published figures.’

NBB officials say that biodiesel, produced from sustainable U.S. feedstocks, can be a key part of America’s strategy to reduce its dependence on foreign oil. They fault the researchers for trying to use inexact science and incomplete data to possibly to try affect America’s commitment to biofuels.

Biodiesel

Biofuels Key Part of Conversation at Farm Foundation Meeting

John Davis

It was a pretty amazing event today at the Farm Foundation’s Food and Agriculture Policy Summit in Washington, D.C. today.

Seven former Secretaries of Agriculture (six in-person and one by videotape) debated the future of agriculture in America, especially what the immediate future would hold for the next person to head the U.S. Department of Agriculture.

A big part of this historic, bipartisan conversation was the role of biodiesel and ethanol, as well as other sources of renewable fuels.

John Block, who served as Pres. Ronald Reagan’s Ag Chief, said there’s too much infighting within the agriculture community over renewable energy.

“We’re one family in agriculture. We shouldn’t be fighting each other. I think there’s been too much fighting in the family over this food and fuel issue.”

Block says we can’t take our eye off the ball of getting energy from all sources. He says the recent drop in oil prices won’t last.

Listen to Block’s comments here: [audio:http://www.zimmcomm.biz/farm-foundation/Block1.mp3]

Download the audio here. (mp3)

Biodiesel, Ethanol, Farm Foundation, food and fuel, News

Top Ethanol Producer Addresses Farm Forum

Cindy Zimmerman

The head of the world’s largest ethanol producing company was keynote speaker at 12th Annual Farm Journal Forum in Washington D.C. today.

POETPOET CEO Jeff Broin says his company is considering various options to purchase ethanol plants, although he would not specifically comment on rumors that they might buy the bankrupt VeraSun or any of its assets.

“There are a lot of opportunities out there. We have looked at dozens of options over the last six months and we will continue to look at all of the options,” Broin said.

Broin remains optimistic about the ethanol industry despite shrinking margains that are now making ethanol more expensive than gasoline.

“I’ve personally produced ethanol at $10 per barrel oil,” Broin said. “At $4 corn, we can beat $60 oil prices. As oil falls below that it will have some effect on grain prices.” Today oil futures were $47 a barrel while December corn futures were just over $3.48 a bushel.

While the short term may look bleak, Broin says long term he expects to see a very successful industry.

Miscellaneous

Court Rules VeraSun Can Reject Corn Contracts

Cindy Zimmerman

Corn growers were happy to have their day in U.S. Bankruptcy Court Tuesday for VeraSun Energy Corporation but the outcome was not favorable.

VeraSunAs expected, bankruptcy law and the ruling will allow VeraSun to reject any contracts that are economically disadvantageous to VeraSun, including corn growers’ contracts.

According to National Corn Growers Association (NCGA) Chairman Ron Litterer of Iowa, they just wanted to have their say to address issues of concern to growers. “It was doubtful that we could influence the courts to require VeraSun to pay the contracted price for our corn,” Litterer said.

“We will continue to advocate for the interests of all corn suppliers and play a role to help make the best of a bad situation,” said Litterer. “As providers of corn to VeraSun, corn growers want fair payment under fair terms for their corn, as well as a positive conclusion that allows VeraSun to stay viable as a long-term customer for our corn.”

NCGA helped form an advisory committee in November to make certain that the views, expertise, and interests of corn growers in the VeraSun case were effectively represented before the U.S. Bankruptcy Court in Delaware. The advisory committee is made up of corn growers from Iowa, Michigan, Nebraska, North Dakota, Ohio, and South Dakota.

corn, Ethanol, News