Ag Chief Addresses Concerns About Loans to Ethanol Plants

Cindy Zimmerman

Agriculture Secretary Ed Schafer met with livestock, dairy, and feed grain organizations on Monday to explain how some rural businesses – including both ethanol plants and livestock industries – may be eligible for the USDA’s Business and Industry Loan Guarantee Program.

World Food Prize Ed Schafer“We walked through the B&I loan guarantee program, which has been used by their memberships, and we assured them that this was a long-standing program that we would use to help finance businesses in rural America, some of them may be ethanol facilities,” Schafer said. “We assured them that no specific money was being set aside only for the ethanol industry.”

Schafer understands why the livestock industry might have been concerned about stories that came out after comments he made to reporters at the World Food Prize symposium.

“It’s one of those situations where everybody is nervous out there, a lot of these folks have seen increased feed costs,” Schafer said. “There’s been a big effort by others to blame ethanol for increased feed and food costs and certainly ethanol production has been a small portion of that but it’s easy to kick around the new kid on the block and so we attack ethanol.”

He says there was a misunderstanding among some that the government was going to use part of the $700 billion bail out package to help ethanol plants that lost money this year by speculating on the commodity markets. But, Schafer said it was important for the livestock industry to know that the loan program is there for them as well. “And we’re going to pass along the elements of the Business and Industry loan guarantee program to them that they can pass out to their members.”

The program was established in 1974 to help local rural business by backing loans from private lenders for up to $25 million for credit-worthy entities. Loans are only given after due diligence is performed and the USDA has reviewed the businesses cash flow, management and other issues.

Ethanol, Government, livestock feed, News, USDA

Ethanol Powered Super Car

Cindy Zimmerman

A British company has developed a hot new sports car that can run on ethanol.

The description for the new Climax on its website is pure poetry:

climaxInspiration for the design came from the legendary Cooper Climax F1 car of the 50’s and is drawing on Britain’s vast Motor Sport Heritage while keeping a firm eye to the future. It is not a retro car, it is a modern Super Car designed with the discerning enthusiast in mind. It is revolutionary and has been designed to set a new standard in the niche vehicle sports car market. The Climax is bespoke and exclusive, quintessentially British, hand-finished, with excellent performance and superb handling.

The Climax can run on “both bio-ethanol and unleaded petrol, therefore enhancing performance and reducing the cars carbon footprint.”

One drawback – besides the $135,000 price tag – despite all the extras, the car has no roof – just a removable cover for parking outside. Like you would park a car like this outside!

Car Makers, Ethanol, News

Food and Fuel Forum in KC

Cindy Zimmerman

Representatives from both sides of the food versus fuel debate discussed the issue on Friday in Kansas City during a forum held by the Agricultural Business Council of Kansas City.

KC ForumSpeakers included USDA Undersecretary Tom Dorr; editor Morton Sosland of Sosland Publishing Co.; and Randy Schnepf, agricultural economist with the Congressional Research Service.

The panel moderated by Mike Adams of Agri-Talk included two farmers – Blake Hurst, vice president of Missouri Farm Bureau and Ken McCauley, past chairman of the National Corn Growers Association – who represented the fuel perspective. On the food side were Robb MacKie, president of the American Bakers Association, and Dan Gustafson of the Food and Agriculture Organization.

Notably, all four panel members made the point that biofuels are not the main culprit for rising food prices and agreed that major factors behind rising food costs include tight global grain stocks, export bans, and record energy costs. “It appears the volatile corn and wheat markets have adjusted down, for now. The key constraints on global grain stocks remain to be land available for agricultural production and crop yields,” said Schnepf.

McCauley noted that crop yields may double by the year 2030. “We are currently using all available technology to significantly increase corn production, and there is more technology in the pipeline that will boost yields even more,” McCauley said. “Likewise, we can find new markets for corn while still meeting all traditional needs and being responsible stewards of the natural resources we’ve been given.”

corn, Ethanol, food and fuel, News

Ohio Ethanol Plant is 26th for POET

Cindy Zimmerman

POET MarionThe world’s largest ethanol producer opened a third plant in Ohio on Friday. POET Biorefining – Marion is POET’s 26th ethanol plant, bringing the company’s total annual capacity to 1.54 billion gallons.

Senator George Voinovich (R-OH) joined company representatives and local dignitaries for the opening ceremony.

“I could not be more proud of POET’s commitment to Ohio agriculture and Ohio jobs, and our nation’s national security,” Sen. Voinovich said. “This facility, along with the plants opened in Leipsic and Fostoria, represent a critical part of Ohio’s future economy and reaffirm Ohio’s role as one of the top agricultural states and as one of the leading innovators and developers of alternative energies in the nation. POET’s commitment could not come at a more needed time for our nation’s environmental, economic and national security needs.”

POET was recently listed by Forbes as one of “Eight Promising Alternative Energy Companies.” The company’s next major milestone will be the start of ethanol production before the end of the year at a pilot-scale cellulosic ethanol plant currently under construction in Scotland, S.D.

Ethanol, News

South Dakota Corn Sponsors Ethanol Bowl

Cindy Zimmerman

South Dakota CornThe South Dakota Corn Utilization Council is partnering with Northern State University to present the First Annual Ethanol Bowl next month.

The premiere event will feature the NSU Wolves facing Northern Sun Intercollegiate Conference rivals the Augustana Vikings on November 8 at Clark Swisher Activities Complex in Aberdeen, S.D.

“Northern State looks forward to celebrating a growing industry in our region and enjoy some great NSIC football,” said Bob Olson, NSU Athletic Director.

Ethanol, News, Promotion

Wind Turbine Maker Locates in Arkansas

John Davis

A German maker of wind turbines is locating to Arkansas, part of that state’s growing wind turbine manufacturing industry.

This article from the Northwest Arkansas Morning News says Nordex USA Inc will build a $100 million plant, employing 700 people in Jonesboro and beginning production in January 2010:

Nordex is an original equipment manufacturer, meaning some of its parts and components suppliers are expected to locate in the area, officials said.

Jonesboro’s location was a main consideration in the company’s decision to locate there, according to Nordex USA CEO Ralf Sigrist.

“Logistics is one of the main concerns, main constraints, main challenges for our industry,” Sigrist said. “The unique location in this area — it’s in the midst of the various possible wind markets: West Coast, Texas and the South up to North Dakota and the eastern corridor.”

Friday’s announcement broadens Arkansas’ rapidly growing wind energy industry.

Earlier this month, Netherlands-based Polymarin Composites, a fully owned subsidiary of Emergya Wind Technologies, said it would invest $16 million in a windmill blade plant in Little Rock that would employ 630 people within four years. One of the company’s suppliers, Wind Water Technology, simultaneously planned to employ 200 at the plant.

Last year, Danish-based LM Glasfiber announced it would build a $150 million windmill blade plant and eventually employ 1,000 people in Little Rock. That company also planned to open a training academy there as well as its North American headquarters.

Arkansas Gov. Mike Beebe praised the move, saying this is an indication of the type of business that will only grow in the future.

Wind

Tampa Could Become Major Biodiesel Port

John Davis

Tampa, Florida could become a major port for alternative fuels… just in time as an area just up the road is expanding its potential to produce biodiesel.

Yesterday, I told you about how Groveland is expanding its biodiesel production capabilities and hopes to rival Houston, Texas in terms of green fuel refining. Now, GreenHunter Energy Inc. of Houston might be building a $70 million facility to store and produce biofuels at the Port of Tampa and has paid $1 million to lease a 22-acre site, according to this story in the Tampa Tribune:

The project would give GreenHunter a “foothold in a deep-water port that handles over half of the transportation fuel used in the state of Florida,” GreenHunter Chairman and CEO Gary Evans said.

The publicly held energy company owns and operates the nation’s largest biodiesel plant, a 105 million-gallon-per-year refinery in Houston.

The company is also developing six wind-power projects in Montana, California and New Mexico. In addition, it recently paid $2.5 million for a 14-megawatt power plant near Tallahassee that uses wood waste to generate electricity.

Biodiesel

Speakers Announced for the 2008 MO Agribusiness Summit

The line of speakers have been announced to participate at the 2008 Missouri Agribusiness Summit on November 12 in Columbia, MO. The purpose of this event is to provide information to agribusinesses and producers regarding current industry topics and to promote the local resources that are available to agribusinesses.

“The 2007 inaugural Summit covered a lot of great topics, and we’re hoping this year’s event is at a similarly high level. Last year, our attendees included producers, biofuel cooperatives, retailers and researchers, so the topics are geared toward that audience,” noted Kari Dowell of Williams Keepers, LLP, a sponsor of the event.

Speakers slated for the event include: Rep. Brian Munzlinger; Michelle Kautz of the National Ethanol Vehicle Coalition; Jenna Higgins of the National Biodiesel Board; Dept. Ag Director Don Steen; Gary Clark of the Missouri Corn Growers Association and others.

Additional sponsors are: Bryan Cave LLP, the Missouri Agricultural & Small Business Development Authority, Missouri Corn Growers, and Missouri Soybean Programs.

Biodiesel, E85, Ethanol, News

Credit Crunch Helps Wind Turbines Catch Up

John Davis

It’s kind of a good news/bad news thing.

One the one hand, the wait to get wind turbines seems to be easing. But as this article from Greentech Media says, the credit crunch is helping ease that backlog:

“Turbines are available now, which is refreshing,” said Brad Johnson, director of business development at John Deere Renewables, on Thursday. “Before the credit crisis, it was very difficult to get turbines. We are finding a variety of choices.”

Johnson’s comment comes a day after one of the world’s largest wind turbine makers, Gamesa, said it would shut production at some of its factories temporarily, Reuters reported. Gamesa managers said they are waiting for customers to confirm their purchase plans before providing specific sales or production targets for 2009 and beyond.

It wasn’t so long ago when wind farm developers had to scramble to find turbines for their projects. Vestas Wind Systems in Denmark, the world’s largest wind turbine maker, said earlier this year that it had a huge backlog of turbine orders.

The turbine shortage has fueled aggressive efforts by turbine parts makers to increase production. In fact, eight new turbine components factories went online in the United States this year while nine manufacturing centers expanded their production capacity, said the American Wind Energy Association on Wednesday. Nineteen more new factory projects have been announced, the association said.

But the credit crunch and faltering economy are sending a cold breeze through the wind industry, which typically borrows money from banks and other investors to build wind farms.

Another bit of good news is, American wind power production is on track for another record year… and is expected to do even better next year. Sooner or later, the credit crisis will pass as the finance industry jumps back into the wind energy game.

Wind

Mustard Seed Biodiesel for Some CA Buses

John Davis

Some locally grown mustard seeds could soon be powering buses in Monterey County, California.

This story from the San Mateo County (CA) Times says the mustard seed oil could be turned into biodiesel by the end of this year:

By December, Monterey-Salinas Transit officials hope to have refined mustard-seed oil — which will be mixed with regular diesel fuel — from about 3,000 pounds of seeds harvested in August from a 10-acre field in the King City area.

“We’re going to be using our oil late this year,” said Hunter Harvath, assistant general manager of the transit agency.

The timing depends on when the seed can be pressed and refined. Presses are in short supply this time of year because the wine grape crush is under way, he said.

The mustard seed experiment began in February on 20 acres owned by San Bernabe Vineyards near King City. Pacific gold and wild California mustards were planted to determine which variety of the plant would produce the most seed oil.

The ton and a half of seed will produce about 750 to 800 gallons of biodiesel. Like other biodiesel, the mustard oil will constitute 20 percent of the fuel mixture that powers the buses, he said.

The article goes on to say the experiment with the wild mustard seed ran into a snag when the field was overrun by turnips.

Biodiesel