Corn Growers Unhappy With VeraSun Contracts

Cindy Zimmerman

Thousands of corn growers from across the Midwest could potentially have their contracts with ethanol producer VeraSun rejected, including the chairman of the National Corn Growers Association (NCGA).

NCGANCGA chairman Ron Litterer of Iowa and others have filed a formal objection with the U.S. Bankruptcy Court in Delaware regarding the proposed disposition of corn contracts by VeraSun Energy Corporation, which filed Chapter 11 at the end of October.

VeraSun announced recently that they are continuing to work with suppliers while pursuing long-term financing.

“Unfortunately, the Company will need to reject some corn contracts for delivery through Dec. 31, 2008 at our Janesville and Welcome, Minn., facilities due to the delayed startups. Other contracts may need to be rejected or renegotiated as we continue to work through them on an individual basis.”

The objection filed by the corn growers indicates specific concerns with VeraSun’s proposed procedures under bankruptcy, which may allow VeraSun to wait until 10 days before contracted delivery date to notify growers of their rejection of the contract. This would essentially leave corn suppliers in a state of limbo while VeraSun is free to determine the market price for corn before deciding whether to accept deliveries under a contract or summarily reject the contract. Litterer believes this would be fundamentally unfair to corn growers and other corn suppliers.

corn, Ethanol, News

POET Could Be Interested in VeraSun

Cindy Zimmerman

POETThe world’s largest ethanol producer could be getting even bigger soon.

VeraSunSpeculation is that POET is behind a potential buyout of VeraSun Energy Corporation, which filed Chapter 11 less than a month ago. VeraSun announced this week that it received a “non-binding unsolicited indication of interest with respect to the purchase of substantially all of its assets.”

Both POET and VeraSun are citing confidentiality considerations for not naming names, but POET CEO Jeff Broin said in a statement that they are “in serious discussions with a couple of ethanol producers regarding possible acquisitions.”

“POET remains profitable despite the current economic challenges facing the ethanol industry thanks to careful risk management and proprietary technology that makes our process for producing ethanol extremely efficient,” said Broin. “These potential acquisitions have met our initial criteria, and we will continue discussions to determine whether the plants are the right fit for our company.”

Ethanol, News

KU* EcoHawks Aim for 500 MPG Car

John Davis

Some University of Kansas* engineering students are working on a car they hope will get 500 miles per gallon… and ethanol and biodiesel look to figure in as some of the fuels it would run on.

This story from the KU* School of Engineering web site says the students are working on a 1974 Volkswagen Super Beetle to turn it into the epitome of hybrid auto efficiency:

“That’s the fun. By the time we’re done, it’s going to be totally different, and it’s going to be great,” says Lou McKown, a University of Kansas senior in mechanical engineering.The EcoHawks hard at work on a 1974 Volkswagen Super Beetle

For his senior project, McKown is part of a team called the EcoHawks, that is taking the iconic round vehicle and transforming it from a motionless heap to a fully integrated hybrid vehicle by the end of the school year.

“We’re just the first year of this, too,” McKown says. “We hope that the work we do this year will provide the basis for the next year and so on.

“Our long-term goal is to make a car that can get efficient fuel anywhere in the country, whether it be electric, ethanol, biodiesel, whatever.”

The students’ advisor hopes they’ll be able to change the car culture in this country by teaching people how to turn their classic into classically efficient.

You can read more about the Kansas* EcoHawks at www.ecohawks.org.

*(Editor’s note: since it is Border War Week between Missouri and Kansas, I am required by Missouri law to spit every time I write or say the word “Kansas.” [ptooey]. And I’m an Iowa Hawkeye fan! But rules are rules.)

Biodiesel, Ethanol, Flex Fuel Vehicles, News

Dems Ready to Introduce Biofuels Bills

John Davis

For the first time in 16 years, Democrats control the U.S. House, Senate and the White House. And for some of the Democratic leaders in the Senate, they see this as the best opportunity to get some of their pet biofuels legislation passed and signed.

This story from CBS News says Sen. Barbara Boxer (D-Calif.), chairwoman of the Senate Environment and Public Works Committee, will offer a couple of bills that will boost the green fuels and help the environment:

One measure would allocate $15 billion a year in grants for advanced biofuel development, and the other would aim to implement an economy-wide cap on emissions.

While the bills are far from drafted, Boxer said both would be designed as economic stimulus packages to create more green jobs and jump-start Barack Obama’s challenge to reverse global warming.

“I believe strongly that we have a recipe for economic recovery,” Boxer told reporters at the Capitol. “The time to start is now, and that’s why my colleagues and I are here to step up to President-Elect Obama’s call to action to address global warming and create millions of green jobs in America.”

Boxer’s bills would most likely meet President-elect Barack Obama’s recent call for legislation to address climate change by reducing emissions.

Biodiesel, Ethanol, Government, Legislation, News

Grants Boosting CT’s Biodiesel Industry

John Davis

Seven Connecticut biodiesel distribution firms have received a total of $350,000 in grants.

This press release from Connecticut Gov. M. Jodi Rell says the money was handed out under the state’s Distribution Facilities Grant Program to companies that undertake projects to develop biodiesel distribution equipment and facilities:

“Support for biodiesel production is not only an economic development issue but also an environmental issue,” Governor Rell said. “By creating more opportunities for renewable energy sources we can assist individual businesses, reduce energy costs, improve air quality and reduce our dependence on foreign sources of oil. Programs such as this are a key component of my agenda to make Connecticut a leader in sustainability.”Read More

Biodiesel, Government

Fed Fleet Not Fueling Vehicles with Alternative Fuels

The Federal Government’s plan of building their fleet as alternative fuel may be in jeopardy. According to the Washington Post, for the past 16 years they’ve acquired about 112,000 vehicles that can burn something other than fossil fuels. The vehicles are purchased, however, the fuel is difficult for them to find.

“I call it the ‘Field of Dreams’ plan. If you buy them, they will come,” said Wayne Corey, vehicle operations manager with the U.S. Postal Service. “It hasn’t happened.”

Congress has mandated that Federal agencies increase their number of alternative fuel vehicles. Many of the vehicles which have been purchased are E85 compatible, but many of the vehicles were sent to locations in which the fuel is not available. By law, the vehicles must use the alternative fuel should the fuel be available within five miles or 15 minutes from the pump. At this time, 92 percent of the vehicles are not using these such fuels.

The National Ethanol Vehicle Coalition (NEVC) assists in locating the appropriate location for E85 fueling stations. NEVC Executive Director Phil Lampert added, “While the preceding article is factually correct, the NEVC has successfully worked with a number of regional offices of the USPS, Dept. of Defense, and General Services Administration to locate FFVs in areas where fueling infrastructure exists. Certainly much can be done to increase the use of E85 in FFVs, but it should be noted that some federal agencies, (particularly regional offices) have been successful in placement of FFVs in areas with fuel.”

E85, Ethanol, Facilities, Government, News

Ethanol Groups Join Together

Cindy Zimmerman

EPICThe Ethanol Promotion and Information Council is joining with the newly-formed Growth Energy group.

EPIC Executive Director Toni Nuernberg made the official announcement today that the organization’s board of directors is recommending a transition plan to the membership for the two groups to combine.

Growth Energy“The mission of EPIC’s formation— growing ethanol awareness through public relations, marketing and promotions — will continue as a core platform of Growth Energy’s initiatives,” said Nuernberg in a statement. EPIC’s programs and staff will be transitioning into Growth Energy over the next few months.

Growth Energy was announced earlier this month as a new ethanol organization formed by the same principals who started EPIC in 2005, “committed to the promise of agriculture and growing America’s economy through cleaner, greener energy.”

EPIC, Ethanol, Growth Energy, News

WA Supreme Court Green Lights Wind Farm

John Davis

Washington’s State Supreme Court has cleared the way for a wind farm that had been in limbo during a dispute between local residents and the governor.

The Seattle Times reports that the unanimous decision confirmed that Gov. Chris Gregoire had authority to approve a Kittitas County wind farm over the objections of local officials:

The project, from developers Horizon Wind Energy of Houston, would be along U.S. 97 northwest of Ellensburg. Turbines would sit on ridge tops in the blustery Kittitas Valley, on private and state land.

Project officials have said they expect to spend at least $150 million on the wind farm, and supporters say it could provide enough electricity to supply about 30,000 homes.

Before getting Gregoire’s approval, the Kittitas Valley Wind Power Project was reduced from about 120 turbines to about 65, and developers agreed to keep turbines farther from homes and cabins.

But the county commission appealed Gregoire’s ruling, arguing that the state abused its authority in this case, and shouldn’t be allowed to pre-empt county land use laws for wind power projects. The court disagreed, upholding Gregoire’s final decision.

The article adds that the court quoted Don Quixote in its ruling: “They are giants: and, if thou art afraid, get thee aside and pray, whilst I engage with them in fierce and unequal combat.'”

Wind

Minnesota Offers Biodiesel Blending Grants

John Davis

The State of Minnesota is offering $300,000 in grants to help its biodiesel industry.

This story from the Alexandria (MN) Echo Press says the Minnesota Department of Agriculture (MDA) is accepting proposals for grants for owners of facilities that supply petroleum products to customers who sell, use, or transport fuel in the state of Minnesota:

The facilities should be located on or near a petroleum terminal and have an infrastructure that can be designed to blend cold weather biodiesel with conventional diesel fuels.

Cold weather biodiesel is a high-quality biodiesel blend that can be used successfully year-round, even in the coldest climates.

Grant funds may be used to offset the cost of necessary infrastructure equipment including but not limited to tank, pipe, valves, meters, pumps and heating equipment plus the cost of engineering, fabrication and installation.

The article goes on to say that the proposals need to have a description and cost of the proposed blending facilities and assurances that they will provide biodiesel-blended fuels to the Minnesota diesel fuel market, even in cold weather.

Check out the MDA Web site, www.mda.state.mn.us, for more information. Applications are due by November 28th at 4 p.m. CST.

Biodiesel

Sustainability Forum for Biodiesel

John Davis

The National Biodiesel Board, the foremost advocate for the biodiesel industry in the U.S., has brought together some of the nation’s leaders to work on sustainable solutions for this country’s energy challenges.

A symposium in St. Louis this week featured the NBB’s Sustainability Task Force, a group put together last February at the National Biodiesel Conference & Expo in Orlando, Florida. This NBB press release says the meeting featured discussions of critical issues related to the promise of biofuels, including greenhouse gas emission models, biodiesel’s positive energy balance, and the development of next generation feedstocks:

“As America searches for solutions to our energy challenges, U.S. biodiesel is delivering with a cleaner and sustainable renewable fuel source,” said Emily Landsburg, Chair of the NBB’s Sustainability Task Force. “Biodiesel is already helping the nation make important strides toward energy independence and we will continue to explore new and promising practices.”

This week’s symposium included representatives from the U.S. Department of Agriculture, the National Renewable Energy Laboratory, the American Soybean Association, the World Initiative for Soy in Human Health (WISHH) and the U.S. Department of Energy Clean Cities.

This week at the NBB’s fall board meeting, the board adopted several resolutions addressing sustainability. The resolutions pledge to continue to develop internal policies and support practices which promote the use of sustainable feedstocks and biodiesel production methods, and to actively engage in forums addressing global sustainability standards.

The NBB is also trying to counter what it calls “unsound and incomplete science which distorts the effects of biofuels” by providing accurate information about biodiesel to educate the public, elected leaders and the media. To that end, the board has launched a new web site, www.biodieselsustainability.com. Check it out!

Biodiesel