ACE Conference 2026

Ethanol Growth Increases Livestock Feed

Cindy Zimmerman

Export opportunities for the livestock feed co-product of ethanol production are increasing as the industry continues to grow. That was the main message to more than 500 who attended the second the U.S. Grains Council’s International Distillers Grains Conference this week in Indianapolis.

USGC“The reason we’re holding this conference is that we are confident the U.S. ethanol industry will continue to grow due to efforts undertaken by the National Corn Growers Association and state producer organizations over the last several years,” said USGC president and CEO Ken Hobbie. “Due to the efforts of U.S. growers to establish the ethanol industry, we made DDGS our top priority in 2006 and since then have seen DDGS exports exceed 2 million metric tons annually.”

Senior Vice President of Informa Economics Scott Richman told the conference that as a result of the growth in the U.S. ethanol industry this year, 22.8 million tons of DDGS were available for global use in 2007/2008 marketing year, nearly a 50 percent increase from the 2006/2007 marketing year. He said the 2008/2009 marketing year, which just began on Oct. 1, will likely experience an additional 50 percent increase in the availability of DDGS, reaching 31.3 million tons.

“There will be a substantial amount of DDGS available for global livestock industries,” said Richman. “The U.S. Grains Council’s efforts promoting U.S. DDGS and opening several new markets across the globe is helping the U.S. ethanol industry in a big way.”

According to Informa, ethanol production this year is expected to total 9.3 billion gallons and projected to reach 11.9 billion gallons in 2009.

conferences, Distillers Grains, Ethanol

Clemson Gets Ethanol Research Grant

Cindy Zimmerman

The U.S. Department of Energy has awarded a $1.2 million grant to Clemson University in South Carolina to assess the potential of switchgrass and sweet sorghum as feedstocks to produce ethanol in the southeast. The grant also will fund development of a small-scale biofuel processing plant at Clemson University’s Restoration Institute in North Charleston.

clemsonThe South Carolina Bioenergy Research Collaborative has been formed to demonstrate the economic feasibility of using plants, such as switchgrass, trees and sorghum, to make ethanol. The collaborative includes scientists at Clemson, the Savannah River National Laboratory, South Carolina State University and industry incubator SC Bio, as well as industrial partners who are committed to building a pilot plant in the state.

At the same time, a group of Clemson and USDA-Agriculture Research Service scientists is investigating switchgrass production systems in South Carolina, including soil and crop management, new variety development and measuring environmental impacts.

Cellulosic, Ethanol, Research

GM Studies Cellulosic Ethanol in China

Cindy Zimmerman

General MotorsGeneral Motors and partner Coskata are working together to develop and commercialize second generation ethanol in China.

David S. Chen, vice president of GM China Group, said, “According to the China Automotive Energy Research Center, GM has already begun successfully validating the automotive energy resource potential for sustainable biofuels in China.” Chen said China can produce cellulosic ethanol on marginal lands from wood waste, energy crops such as switchgrass and even garbage, and China is in a good position to benefit from the development of such sustainable biofuels.

Currently, China is the world’s third-largest ethanol producer, behind the U.S. and Brazil, with annual production of around 1 billion gallons. GM is leading the R&D and commercialization of sustainable biofuels worldwide, having produced more than 5 million flex-fuel cars and trucks that run on combinations of ethanol and gasoline. In the United States, GM is committed to making half its annual vehicle production flex-fuel capable by 2012.

Car Makers, Cellulosic, Ethanol

Two E85 Groundbreakings in Sacramento

According to news10.net out of Sacramento, California, two E85 fueling locations broke ground in the Sacramento area. The stations are owned by Pearson Fuels who own additional alternative fuel stations across the state.

“I’ve built ethanol pumps in San Diego and in a few other cities in California,” said Mike Lewis of Pearson Fuels. “But as it stands right now, the pump we constructed in Concord is the closest to Sacramento and we need to made them more readily available here.”

Pearson Fuels plans to build two E85 pumps in the Sacramento region. The first is planned for the existing Union 76 station in Carmichael at 5103 Fair Oaks Boulevard. The second will be located at the DB&S Shell station in Sacramento, 5551 Martin Luther King Boulevard. Lewis hopes to have both pumps installed by January 2009. “Remember when gas prices were almost $5 a gallon and people were asking what can I do about it besides drive less?” said Lewis. “Now, here’s your answer: buy a tank of ethanol, so we don’t have to depend so much on oil.”

There are now eleven E85 fueling stations in the state of California.

E85, Ethanol, News

Ethanol Plants Could Get USDA Loans

Cindy Zimmerman

World Food Prize Ed SchaferEthanol plants that have been hurt by dramatic fluctuations in commodity prices this year could be eligible for assistance from the US Department of Agriculture.

Secretary of Agriculture Ed Schafer told reporters after an address to the World Food Prize breakfast in Des Moines Friday that “some plants are under pressure because they’ve been speculating on corn.”

Schafer said there are USDA programs that could, for example, help the companies refinance and reduce their interest rates on operating expenses such as corn purchases. USDA’s Rural Development Program can lend up to $25 million to refinance or loan guarantees. “We have several ways we can help with dollars in rural areas,” Schafer said.

Some ethanol companies, most notably VeraSun, speculated on corn prices during the summer and locked in prices when corn was at $7 per bushel and now cash prices are about $3.50 per bushel, causing some significant losses. “There is going to have to be some credit applied to companies to buy some lower-priced corn to blend with their higher-priced corn obligations,” Schafer said.

If USDA allows the ethanol plants to participate in the loan programs, Schafer said there would be “no restrictions or litmus tests” on the size or ownership for companies to qualify.

Ethanol, Government

Soybean Board Building Demand for Biodiesel

Cindy Zimmerman

The United Soybean Board has been actively building demand for biodiesel on behalf of soybean farmers since 1990 and the opportunities continue to grow on a global basis.

World Food Prize Bob Dole John BechererUSB was one of the soybean industry sponsors of the World Food Prize luncheon in Des Moines this week which gave CEO John Becherer, pictured here with one of this year’s WFP winners former Senator Bob Dole, to talk about the role soybeans can play in both feeding and fueling the world.

“The reality is we do have an opportunity and we need to be producing more product so that we can feed more fish, more pork and more poultry,” Becherer said. Since soybeans are 20 percent oil and 80 percent protein, that allows producers to grow a crop that can provide both.

USB’s development of the biodiesel market has the potential also to pave the way for other feedstocks to be used to make biodiesel. “Developing biodiesel directly raised the farm gate value for soybeans and led to the commercialization of biodiesel,” Becherer said. “Other feedstocks such as animal fats were grandfathered in on the biodiesel research and commercialization which has led to expanding opportunities for other feedstocks for biodiesel.”

“I don’t see that stopping,” he continued. “I don’t think that soybean oil ever believed that we would be the be all, end all for producing soybean oil to be converted into biodiesel. As we move forward, I think the opportunities for other feedstocks to play a part in this process are great.”

He adds that alternatives like jatropha hold great promise for improving subsistence farmers in poorer countries.

Listen to an interview with Becherer here:
[audio:http://www.zimmcomm.biz/world-food/wfp-08-becherer-biodiesel.mp3]

You can also download the audio with this link:
John Becherer at World Food Prize (mp3)

See photos of the World Food Prize event here.

Audio, Biodiesel, International

Cal’s Prop 10 Looks to Promote Alt Fuels

John Davis

Voters in California are being asked to approve a $5 billion bond measure that is designed to help spur the growth of alternative fuels in the state.

This story in the Sacramenta Bee outlines some key points in Proposition 10:

WHAT IT WOULD DO

• Authorizes $5 billion in bonds, about $2.9 billion of which would go toward rebates of $2,000 to $50,000 for buyers of alternatively fueled or highly fuel-efficient (at least 45 miles per gallon, highway) vehicles, such as the hybrid Toyota Prius. The largest subsidies would go toward purchase of commercial vehicles and buses powered exclusively by “clean alternative fuels,” effectively, natural gas.

• Authorizes $2.1 billion for research, development and training for companies, local governments and colleges for renewable and alternative energy projects.

• Requires the money to be spent within 10 years, with no more than 1 percent for administering the program.

Proponents, such as billionaire oilman T. Boone Pickens, say the measure will reduce dependence on foreign oil, clean the air and create thousands of clean-energy technology jobs. Opponents argue the bonds will outlive the natural gas-fueled vehicles they are planned to promote.

You can read the text of the proposal here from the California Secretary of State’s office… and make up your own mind.

Flex Fuel Vehicles, Government

Big Oil Helps WA Biodiesel, Ethanol Standards

John Davis

No, that’s not a typo in the headline. This story from the Seattle Post-Intelligencer says some of the world’s biggest oil companies are working to help the state of Washington put its 2 percent biodiesel and ethanol requirements into effect.

Exxon Mobil Corp. plans to open a biodiesel blending terminal in Spokane by late November, the company’s first in the country, said Prem Nair, a spokeswoman for the Irving, Texas-based company. The terminal will begin blending and supplying biodiesel by Dec. 1.

Within weeks, Chevron Corp. will also begin supplying diesel fuel blended with 5 percent biodiesel to marketers and retail outlets in Washington.

The new supply comes as Washington is struggling to meet a mandate to use more biodiesel, a cleaner fuel, and when several biodiesel projects in the state have been canceled or put on hold.

Currently, about 0.6 percent of all diesel sold in the state is biodiesel, the state says.

The article goes on to say that the help from Big Oil will help give a boost to Washington’s 2 percent ethanol and 2 percent biodiesel mandates, about to go into effect at the end of November.

Biodiesel, Ethanol, News

Ethanol, Biodiesel Pipelines Moving Fuel in Southeast

John Davis

One of the problems ethanol and biodiesel have had is how to get their product from areas of production to areas of consumption. Pipelines help conventional, petroleum-based fuels, so it’s only natural that biofuels would need to adopt similar technology.

Kinder Morgan Energy Partners LP has announced successful testing of ethanol through its 16-inch, 195-mile Central Florida Pipeline (CFP) system between Tampa and Orlando, Florida and the beginning of testing of a biodiesel pipeline in the Southeast U.S. This story in the Oil & Gas Journal has details:

It is finalizing mechanical modifications to the pipeline to offer ethanol transportation services to its customers by mid-November and is evaluating batched ethanol transport possibilities for other parts of its pipeline system.

The company says the short length of the pipeline will limit transmix.

CFP has segregated storage for the ethanol at the Orlando end of the pipeline. Total storage capacity is 546,000 bbl, contained in 28 tanks of 8,190 gal. – 80,000 bbl each. Land is available for expansion.

Kinder Morgan has completed more than $60 million in ethanol projects including modifications to tanks, truck racks, and related infrastructure for new or expanded ethanol service in the Southeast US and Pacific Northwest and has approved an additional $27 million for ethanol projects in the Southeast.

The company is also undertaking tests to assess commercial transportation of biodiesel through its pipelines, running blended B-5 biodiesel through a segment of its Plantation Pipe Line system between Collins, Miss. and Spartanburg, SC. The company expects test results by the end of October. It also is evaluating transporting biodiesel on its Portland-Eugene, Ore. line to support Oregon’s forthcoming biodiesel mandate.

Biodiesel, Ethanol, News

Senator Grassley at World Food Prize

Cindy Zimmerman

Republican Senator Chuck Grassley of Iowa paid a visit to the World Food Prize breakfast on Friday morning to introduce the secretary of agriculture and make a few comments of his own about the importance of American agriculture in feeding the world, as well as honor his colleagues from the Senate, George McGovern and Bob Dole, who are this year’s World Food Prize recipients.

World Food Prize Chuck GrassleyHe believes that increasing the use and acceptance of biotech crops is vital. “We’re entering a new generation in agriculture,” Grassley said. “This generation not only encompasses feeding the world, but also fueling vehicles and eventually getting in to treating patients through pharmaceuticals in crops. This offers opportunities for biotechnology growth throughout the world that will continue to feed populations and provide new prospects for our rural communities.”

In a brief interview after the breakfast, Sen. Grassley said that biotechnology gives us an opportunity to have a stronger agriculture allowing for multiple uses of agricultural crops. “Things like the World Food Prize give an opportunity to educate people about biotechnology,” Grassley said. “By expanding agriculture you can provide food, fiber and fuel.”

Grassley said that the incentives for biodiesel included in the financial bailout passed by Congress are critical to development of the industry. “That’s how you get infant industries started,” he said. “The best proof of that is that we would not have an ethanol industry today were it not for the ethanol incentives.”

He got very passionate about the need for incentives in developing any alternative energy. He used the example of developing cellulosic ethanol. “People say we ought to have cellulosic so we’re not using grain, but how do they think we’d ever get a second generation of ethanol from cellulosic if we don’t have the first generation of ethanol, and we wouldn’t have the first generation if we didn’t have the tax incentives and the public policies to encourage an infant industry.”

Asked if he is concerned about Senator McCain’s comments about doing away with ethanol incentives, Grassley said, “Not as long as I’m in Congress. When he’s president of the United States, we’ll still be developing an ethanol industry.”

Listen to an interview with Grassley at the World Food Prize here:
[audio:http://www.zimmcomm.biz/world-food/wfp-08-grassley.mp3]

You can also download the audio with this link:
Chuck Grassley interview (mp3)

See photos of the World Food Prize event here.

Audio, Biodiesel, Ethanol, Government, International