Ethanol Demand Continues to Outpace Production

Cindy Zimmerman

According to the latest Energy Information Administration figures, ethanol facilities were producing 647,000 barrels per day in August, up from 614,000 in July.

RFAThe Renewable Fuels Association reports that demand continued to outpace production, with demand in August calculated at 661,000 barrels per day, which exceeds 10 billion gallons a year. “This demand is approaching the legal limit of ethanol allowed, known colloquially as the “blend wall.'” according to RFA. “In order to achieve the full promise offered by America’s ethanol industry, expanding markets for ethanol is critical.”

RFA notes that the growth in ethanol production in August came amid declining corn prices that today are half of what they were at their peak in late June, which “erodes the argument of livestock, poultry and food processing companies that have argued ethanol is responsible for the dramatic increase in food prices.”

There was also a dramatic increase in ethanol imports for August, which RFA says is due to importers seeking to capitalize on the final days of a loophole in trade regulations known as the duty drawback. This provision allows for the import of ethanol and the export of another fuel, like jet fuel, to recapture the $0.54 tariff placed on foreign ethanol imports.

Ethanol, News, RFA

Biomass Ethanol Website Launched

Cindy Zimmerman

A web site dedicated to the exchange of information on switchgrass and other biomass energy crops has been launched at BiomassConnections.com.

Biomass Connections“The focus of the site is to allow producers and stakeholders to openly share ideas and experiences gleaned from raising and marketing switchgrass and other biomass energy crops,” says site host and switchgrass farmer Andy Bater.

“Our intention with Biomass Connections is to provide a nationwide agricultural forum where producers can share their experiences raising switchgrass or other biomass, good or otherwise. We want our visitors to tell other growers on the bulletin board about the perennial grasses like switchgrass or miscanthus that they are already growing, or of their interest in harvesting woody biomass from poplar or willows to use for renewable energy. We would also love to hear from farmers raising more traditional crops like corn, since corn stover and corn cob waste are already playing a key transitional role in the development of second generation ethanol.”

Bater, who left a 25-year career in electronic media to return to the farm, says the site will initially be advertiser free and he will serve as moderator to postings that are made.

Cellulosic, Ethanol, News

VeraSun Receives Financing

Cindy Zimmerman

One of the country’s largest ethanol producers is getting financing in place to maintain operations at 14 plants in eight states under Chapter 11 reorganization.

VeraSunVeraSun Energy Corporation reports it has received commitments for up to $215 million in debtor in possession financing and the U.S. Bankruptcy Court entered an interim order allowing VeraSun and its affiliates to borrow up to $40 million. VeraSun is also in negotiations with its other lenders and expects to receive commitments totaling up to $250 million.

VeraSun and 24 of its subsidiaries filed for relief under chapter 11 of the U.S. Bankruptcy Code on October 31.

Ethanol, News

E85 Chevy Camaro Debuted at SEMA Show

The 2008 SEMA (Specialty Equipment Market Association) has debuted the new 6.2L V-8 Camaro flexible fuel engine. The new Camaro is the Dale Earnhardt Jr. Concept, which was actually produced with input from Jr. himself. He is a vintage Camaro enthusiast and adding the higher octane of E85 to this vehicle will give an extra boost to horsepower. According to 4WheelsNews, the base car is a Camaro SS tuned use the higher octane fuel, E85.

“The new Camaro is a 21st century sports car for the young and young at heart,” said Ed Peper, GM North America vice president, Chevrolet. “Wherever your automotive passion lies, the Camaro complements it with world-class design and an exciting driving experience. The concepts unveiled at SEMA accentuate those qualities and trigger the imaginations of countless enthusiasts.”

The exterior of the vehicle is a nostalgic gray-over-white paint scheme with 21-inch five-spoke wheels, a dovetail spoiler and other Chevy Accessories exterior modifications.

Currently, General Motors has the most E85 compatible vehicles on the road than any other automobile manufacturer.

Car Makers, E85, Ethanol

Monsanto Invests in Sugarcane for Ethanol

Cindy Zimmerman

Monsanto is moving into the sugarcane seed business.

MonsantoThe company has announced that “in the face of long-term changes driving greater global demand for food and biofuel sources” they are investing in sugarcane “to diversify its existing core crop portfolio and to leverage its experience in bringing innovations to the agricultural marketplace through breeding and biotechnology.”

Monsanto will be acquiring Aly Participacoes Ltda., which operates the sugarcane breeding and technology companies, CanaVialis S.A. and Alellyx S.A., both of which are based in Brazil.

Carl Casale, executive vice president of global strategy and operations for Monsanto, says this will allow them to combine breeding expertise. “Our goal with this approach is to increase yields in sugarcane while reducing the amount of resources needed for this crop’s cultivation, just as we’re doing now for corn, soybeans and cotton,” Casale said. “We view this as a significant opportunity over the longer term to supplement our ongoing commitment to corn as an ethanol feedstock, diversify our crop technology portfolio and provide innovations to such a vital crop as sugarcane.”

Casale says they hope to bring new trait technologies for sugarcane to market by 2016.

Ethanol, Farming, News

Ethanol Industry Urged to Vote

Cindy Zimmerman

RFA PodcastIn this “Ethanol Report” podcast, Matt Hartwig of the Renewable Fuels Association talks about why it is important for the industry to be involved in the political process and why every needs to get out and vote. No endorsements from the RFA on who to vote for, by the way, just vote because elections on both the state and national level are important for the ethanol industry.

You can listen to “The Ethanol Report” on-line here:
[audio:http://www.zimmcomm.biz/rfa/ethanol-report-20.mp3]

Or you can subscribe to this podcast by following this link.

Audio, Ethanol, News, RFA

Indiana Ethanol Plant Starts Up

Cindy Zimmerman

CardinalThe sun may be going down on one major ethanol producer, but a nice little 100 million gallon per year plant is just taking off in Indiana.

Cardinal
Cardinal Ethanol in Randolf County, Indiana officially started grinding corn on Saturday in a very low key event, according to the Muncie StarPress.com.

Indiana Congressman Mike Pence, local politicians, members of the press and a small group of Cardinal Ethanol officials were on hand for Saturday’s start-up, which involved the click of a computer mouse. The first drops of ethanol from the first corn that hit the grinder on Saturday should make their appearance on Election Day as the fermentation process takes about 60 hours.

Ethanol, News

VeraSun Files Bankruptcy

Cindy Zimmerman

It was no surprise that VeraSun, one of the nation’s largest ethanol producers, filed for reorganization under Chapter 11 on Friday. The move has been expected as the company’s position continued to worsen after taking a fall on pricey forward corn contracts. The company was put on the market in September and Morgan Stanley was hired as an adviser.

VeraSunAccording to the company, “The filing was precipitated by a series of events that led to a contraction in VeraSun’s liquidity, impairing its ability to operate its business and invest in production facilities. The Company suffered significant losses in the third quarter of 2008 from a dramatic spike in its corn costs, reflecting in part costs attributable to its corn procurement and hedging arrangements, and historically unfavorable margins. Beginning in the third quarter, worsening capital market conditions and a tightening of trade credit resulted in severe constraints on the Company’s liquidity position.”

VeraSun officials say they will maintain operations at their 16 production facilities in eight states.

Ethanol, News

Using Ike’s Biomass to Produce Power

John Davis

There is some actual good that will come out of the devastation of Hurricane Ike.

This story from Greentech Media says Biofuels Power Corp. has announced plans to build a 4-megawatt power plant the will produce electricity from the woodchips and other debris from the storm:

The Woodlands, Texas-based company, traded over the counter using the symbol “BFLS,” on Friday signed a preliminary agreement with a wood-waste storage operator, DSMC, and with a consulting firm, Texoga Technologies Corp., that will retrofit abandoned oil wells for carbon-dioxide storage.

Biofuels Power and DSMC will each hold a 30 percent equity stake in the project, while Texoga will get 10 percent. Other undisclosed investors will own the remaining 30 percent. Texoga spun off Biofuels Power in 2007.

The pilot project will make use of wood chips and refuse left behind by the powerful Hurricane Ike, which swept through the Gulf Coast in September. A lot of the material will be coming from Galveston, Texas, which was particularly hard hit by the hurricane, said Robert Wilson, a spokesman for Biofuels Power.

DSMC, based in Humble, Texas, has handled a bulk of waste disposal from the hurricane cleanup effort.

While the debris from Hurricane Ike eventually will be burned up, the article did point out the the Gulf Coast has plenty of hurricanes every year, so at least potentially, there would be plenty of feedstock.

biomass

Trading Used Cooking Oil for Biodiesel

John Davis

The folks in El Paso, Texas now have a way to get rid of their old, used cooking grease and fill up their gas tanks.

This story from KVIA-TV in El Paso says it’s a new pilot program offered by the city to turn the grease into biodiesel:

The service is free and available to residents who pay a solid waste disposal fee to the city. Officials advise residents to never wash cooking fats, oil or grease down the drain, as they can cause the sewer line to back up into homes or in the storm drains, which flow to the city’s wastewater treatment plants.

Residents can dispose of up to 15 gallons of used cooking oil per person, per visit to a Citizen Collection Site.

The City of El Paso has partnered with Global Alternative Fuel, LLC, to start the pilot program. Used cooking oils from businesses, including restaurants, will not be accepted.

You can find a drop off point by clicking here.

Biodiesel, E85, Government, Indy Racing