Ethanol Benefits Outweigh Costs

Cindy Zimmerman

A senior economist with the nation’s largest general farm organization says the benefits of ethanol outweigh the costs.

AEM Terry FranclDuring the Association of Equipment Manufacturers AgExecutive forum in St. Louis last week, American Farm Bureau senior economist Terry Francl said that the consumer is seeing a benefit from ethanol.

“The bottom line on the ethanol side is that although it has driven up the cost of things such as feed and food to a certain extent, for every extra dollar that consumers spend for food, they have reduced gasoline costs approximately $2. So it’s a win-win situation for consumers, and for that matter, taxpayers,” Francl said.

The economist says people involved in agriculture and ethanol need to work harder to try and get this message out in the media and to the general public. “It’s not something that is easy because there are a lot of anti-ethanol people that provide a lot of misinformation but we just have to be vigilant and try and address those issues when they come up.”

While the American Farm Bureau is a general farm organization with equal representation from both the crop and livestock sectors, they have continued to support the development of ethanol and biodiesel because of the benefits they offer to the farm sector in general. Francl also points out that the farm equipment sector plays a vital role in helping to increase productivity so that producers can supply both food and fuel for the world.

Lots of good stuff in their presentations, which you can listen to here:
[audio:http://www.zimmcomm.biz/AEM/aem-forum-08-francl.MP3]

Audio, Ethanol, food and fuel

Wind Is Energy ‘Gift’ For Native Americans

John Davis

“The buffalo were a gift,” [Tribal official Ken Haukaas] continued. “The wind is a gift.”

Native Americans on the Great Plains are harvesting a new gift these days… wind power. This story in the New York Times says tribes such as the Rosebud Sioux on the border of Nebraska and South Dakota are builidng wind turbine farms, which could give an economic boost to the tribes’ 29,000 members:

“We’re broke here,” Mr. Haukaas said. “We’re poor.” But, he added: “The wind is free. There’s energy here all the time.”

Mr. Haukaas believes that “the same thing that brought the buffalo brings the wind.”

“The buffalo were a gift,” he continued. “The wind is a gift.”

In 2003, after erecting a 750-kilowatt turbine that powers the Rosebud Casino near the Nebraska border, the Rosebud Sioux tribal council set its sights on building the Owl Feather War Bonnet wind farm, a 30-megawatt project that could power about 12,000 homes, each about 1,200 square feet.

After five years of negotiations with a non-Indian developer, Distributed Generation Systems Inc. of Colorado, the tribal council president, Rodney M. Bordeaux, said Thursday that he expected to sign a construction deal that would bring in some $5 million to the tribe over 20 years.

The article goes on to say that federal officials believe that wind energy could revitalize sagging Native American economies, but they admit that wind energy deals on Indian lands are few and far between… in fact, there’s just one… a 50-megawatt project on the Campo reservation near San Diego. But this latest deal could be a sign a new wind is blowing.

Wind

Mo Gov Candidates Debate But Agree on Alternative Energy

John Davis

Candidates for governor in Missouri aren’t seeing eye-to-eye on much these days (and trust me… we’re hearing and seeing plenty of tit-for-tat attack ads here in Central Missouri), but Republican Kenny Hulshof and Democrat Jay Nixon did seem to agree on the importance of renewable energy during their debate this week in Kansas City.

According to this story in the St. Louis Post-Dispatch, both men see alternatives as key for the economy:

With pocketbook issues uppermost in voters’ minds, both men promised to create jobs by beefing up job training and aggressively marketing the state to employers.

Asked for specifics, Nixon said the state should encourage construction of a windmill plant and an auto assembly plant for flex-fuel vehicles. Hulshof called for an oil refinery and research funding to turn algae into biodiesel.

But just in case you thought this debate was any kind of love fest, it was the ONLY thing the two seemed to agree upon. Oh well… back to the attack ads.

algae, Biodiesel, Wind

Cellulosic Ethanol Company Goes Public

Cindy Zimmerman

A South Dakota-based cellulosic ethanol company has gone public and changed its name.

KL EnergyKL Process Design Group is now KL Energy Corp, a move that will help the company generate funding to develop its second commercial scale cellulosic ethanol production facility.

Since January of 2008, the KL has been producing cellulosic ethanol using waste wood as feedstock, at a commercial scale facility near Upton, Wyoming. The plant has been supplying fuel grade ethanol this year for the American LeMans Series.

Cellulosic, Ethanol

FEMA Buys Biodiesel Buses for New Orleans

John Davis

New Orleans is getting some biodiesel buses… thanks to some money from the federal government.

This press release from Louisiana Sen. Mary Landrieu says the Federal Emergency Management Agency has given the city the New Orleans Regional Transit Authority (RTA) $44 million to replace… and to upgrade… 204 buses and 31 vans that were destroyed by flooding during Hurricane Katrina:

The standing FEMA policy would have resulted in RTA receiving 204 buses that were 12 years old, to match the age of the vehicles they were replacing. Instead, FEMA has agreed to obligate the money for as many as 115 new biodiesel buses, which cost about $380,000 each…

“I am so glad that FEMA has agreed to replace the RTA fleet with the type of buses that are needed,” Sen. Landrieu said. “The existing FEMA policy was not designed to handle the loss of an entire transit fleet, and putting forward millions of taxpayer dollars to find and purchase 10-year-old buses that would have required combined maintenance and replacement within a couple of years would not have been an effective use of government funds.

Landrieu had been a longtime advocate of changing the FEMA policy.

Biodiesel, Government

Ethanol in Focus at AEM Ag Executive Forum

Cindy Zimmerman

Ethanol and biofuels in general were in the spotlight at a forum for agribusiness executives held this week in St. Louis by the Association of Equipment Manufacturers.

About 100 executives of farm equipment companies and other agribusinesses attended the one day event, which featured a number of presentations that focused on biofuels. Even those speakers who were addressing other topics ended up discussing ethanol and its impact on the agriculture industry.

Association of Equipment Manufacturers AgExec Forum Ed SchaferSecretary of Agriculture Ed Schafer started the forum off by discussing agriculture issues of today and the future, with the top two being trade and biofuels. “The continued development of the renewable fuels industry is critically important to the future growth of American agriculture,” Schafer said.

He talked about the release this week of the Biofuels Action Plan, which he calls “an essential road map that points out how we are going to meet the Renewable Fuels Standard.” He says the plan points out the way to use different feedstocks, what needs to be done to commercialize second generation biofuels, and the infrastructure needed.

Also talking about biofuels during the forum were Dr. Jay Lehr of The Heartland Institute, Terry Francl of the American Farm Bureau Federation, Allen Rider with 25x’25 and a panel of commodity organization representatives.

Agribusiness, Ethanol, Farming, Government

Ethanol Across America Paper Focuses on Higher Grain Prices

Recently, the Ethanol Across America education program released a White Paper titled: Ethanol Economics from Ranch to Restaurant, authored by Chairman of the Nebraska Ethanol Board (NEB) Jim Jenkins. Jenkins is also cattleman and a restaurant owner. This White Paper presents a unique perspective on the impact of increased grain prices on his two businesses and how it may drive industry to more efficiency and greater profitability.

“A number of factors have led to the recent historic increase in commodity prices, but market forces are kicking in—creating stability, and profit opportunities for livestock producers, biofuels producers and the rural communities in which they live and do business,” noted Jenkins in the paper. “The advent of the biofuel industry is helping lead America out of decades of stagnant commodity prices—while, for the first time, providing consumers with a viable fuel choice for their vehicles.”

Ethanol Across America is a non-profit, non-partisan education campaign of the Clean Fuels Foundation and is sponsored by industry, government, and private interests. U.S. Senators Ben Nelson (D-NE) and Richard Lugar (R-IN), Co-Chairmen.

corn, E85, Ethanol, Farming, Food prices, Government, News, Opinion

Ethanol Supports Oil for Music Tour

Cindy Zimmerman

Bartering musical talent will result in more than just entertainment for more than 3.2 million Americans; it will turn into free fuel.

Music is OilOn Saturday, October 11 at 11 am eastern time, the Ethanol Promotion and Information Council (EPIC), along with 2020 Vision, 3 Kingdoms Entertainment, Exxon, Lehigh Gas, International Reciprocal Trade Association, Pennsylvania Gasoline Retailers and Allied Trades, will stand together at an Exxon gas station in Philadelphia to announce a revolutionary world tour and film titled, Music is Our Oil (MIO).

The MIO world tour is scheduled to kick off in June 2009, and will send America’s greatest hip-hop and rock artists to oil producing countries to barter their musical talent for 20 million barrels of oil. The 20 million oil barrels will transform into 125-gallon MIO gas cards, which will be distributed to 3.2 million Americans through the Temporary Assistance for Needy Family (TANF) program.

“The rising cost of energy has created a strain on all consumers across the country. Through the Music is Our Oil program we will not only be dispensing gas cards, but we’ll also be encouraging consumers to fill up with E10,” said Toni Nuernberg, executive director of EPIC.

Following the press conference a free concert titled BETA TEST will be held at 3 p.m. EST at the Exxon gas station, which is being dubbed Rock & Roll Exxon for the day. The free concert will feature 10 indie rock bands and hip-hop artists bartering for a full tank of gas that will be turned into a 25-gallon MIO gas card to be given to low-income families through the TANF program.

EPIC, Ethanol, Promotion

NJ Gov Looks to Triple Offshore Wind Power

John Davis

New Jersey Governor Jon Corzine has announced he wants to triple the goal for the amount of offshore wind power the state will produce by 2020.

Corzine called for the higher amount as he announced the selection of Garden State Offshore Energy (GSOE) as the recipient of a grant incentive to build New Jersey’s first offshore wind pilot:

“Our draft Energy Master Plan identified a goal of 1,000 MW of offshore wind by 2020,” said Governor Corzine. “We listened closely to our stakeholders, considered current economic conditions and the dynamic state of offshore wind technology, and we knew we had to go a lot further.

“Today, I am announcing that we’re not just doubling our commitment, we’re tripling it. New Jersey will support and encourage the development of 3,000 MW of wind power off its coast by 2020, which will be 13 percent of its total electricity. And we will get to 1,000 MW by 2012.”

Garden State Offshore Energy, a joint venture of PSEG Renewable Generation and Deepwater Wind, was the firm selected through a competitive grant solicitation process. That process concluded last Friday when the NJ Board of Public Utilities voted to award a $4 million grant to Garden State Offshore Energy (GSOE).

The GSOE project will be a $1-billion, 345MW wind farm southeast of Atlantic City, 16 miles from the coast. When completed, it would power approximately 125,000 homes annually.

Government, Wind

Developing an Ethanol-Biodiesel Pipeline

John Davis

An Iowa-based ethanol company is working to develop a pipeline that is capable of carrying both ethanol and biodiesel, as well as some other key liquids.

This press release from ALL Fuels & Energy (AFSE) says the company has entered into agreements with two privately-held infrastructure technology firms, which will provide proprietary, patent-pending technologies to help build the multi-purpose pipelines:

The technology embodied in this alliance allows the pipeline to be kept “clean” and capable of moving various fuel types: ethanol, biodiesel, liquid nitrogen, and other industrial/agricultural liquids. AFSE believes the use of a multi-purpose pipeline can dramatically reduce transportation costs currently associated with bringing alternative fuels to market.

“The multipurpose pipeline brings transportation cost savings and improved channels to market for biofuels. The three-company alliance has begun the process of securing the capital needed to begin the first of five planned phases of operations, for which ALL Fuels & Energy and its alliance partners have engaged Trinity Capital LLC,” said Dean Sukowatey, President/CEO, ALL Fuels & Energy.

ALL Fuels & Energy wants to become a leader in ethanol production, hoping to make and to acquire 500 million gallons of capacity in the near future.

Biodiesel, Ethanol, News