USDA Meeting Will Address Farm Bill Energy Programs

Cindy Zimmerman

USDA Under Secretary for Rural Development Thomas Dorr will hold a public meeting next month to work on implementing renewable energy programs authorized under the recently enacted farm bill.

Tom Dorr“Continuing to develop renewable energy is a key component of President Bush’s strategy to reduce America’s dependence on foreign oil,” Dorr said. “This meeting is an opportunity for business owners, citizens and agricultural producers to discuss the best ways to harness the untapped renewable energy resources in rural areas.”

USDA plans to implement the farm bill’s energy provisions in consultation with the Department of Energy, Environmental Protection Agency and other federal agencies.

The meeting will be held September 4 from 8:30 a.m. to 4:00 p.m. (EDT) in the Jefferson Auditorium in the South Building, USDA. More information about the meeting and how to arrange to speak or make a presentation can be found on the Federal Register website.

Biodiesel, Cellulosic, Energy, Ethanol, News

REG Able to Produce Algae-Biodiesel on Commercial Scale

John Davis

Iowa-based Renewable Energy Group has announced it has the technology to produce biodiesel from algae on a commercial scale.

This article from Biodiesel Magazine says while the biodiesel maker isn’t producing algae itself, it is providing the crucial elusive step for some companies that are producing the slimy feedstock:

REG has adapted it multi-feedstock technology to refine oil from a variety of algae strains and produce biodiesel exceeding ASTM standards. The results indicate the process can be commercialized when sufficient quantities of algae oil become available. At this time, REG is working with algae companies to develop their process. “We have worked with a variety of algae companies that we think will become producers,” said Daniel Oh, chief operating officer of REG. “We can work with algae companies who are trying to define what they are trying to do from a strain selection perspective to the smartest way to scale up to a commercial scale.”

REG officials believe companies will be able to provide them with algae oil on a commercial scale in the next three to five years.

Biodiesel

Biodiesel Maker Looks at Pipeline to Erie, PA’s Ports

John Davis

Lake Erie Biofuels, the Pennsylvania biodiesel maker with a 45-million gallon a year biodiesel refinery on the shores of Lake Erie (so it’s not just a clever title) is reportedly considering building a pipeline from its plant to the ports of Erie, PA… but company officials aren’t saying much about the project.

However, the Erie Times-News did find somebody who would talk:

Raymond Schreckengost, executive director of the Erie-Western Pennsylvania Port Authority, said the authority has had “very preliminary” discussions with a company about the project.

Lake Erie Biofuels officials could not be reached for comment.

Schreckengost said the company is now transporting about 1.5 million to 2 million gallons of biofuels a month by railroad cars to the port for shipment.

The pipeline would probably be about 6 inches in diameter and would follow the path of an existing sewer line that extends from the former International Paper Co. property, where the biofuels plant is located, to the city’s wastewater treatment plant and then to the port’s facilities.

The article goes on to say that Lake Erie Biofuels plans to pay for the pipeline itself, if it decides to build it, IF it is economically feasible. Port authority officials say they would help the company find a grant to help fund the project, if needed.

Biodiesel

Sustainable Biodiesel Looks for Public Input

John Davis

A non-profit group dedicated to making sure that the production of biodiesel is a sustainable proposition is looking for your input how to keep biodiesel refining, well, sustainable.

The Sustainable Biodiesel Alliance (SBA) has released a first draft of its “Principles and Baseline Practices for Sustainability” for a 45-day public comment and review period. This post on the gas2.0 web site has more details:

The opening paragraph of the report succinctly sums up what their vision of sustainable biodiesel production is:

“Sustainable biodiesel is biodiesel that is produced in a manner that, on a lifecycle basis, minimizes the generation of pollution, including greenhouse gases; reduces competition for, and use of, natural resources and energy; reduces waste generation; preserves habitat and ecosystems; maintains or improves soils; avoids use of genetically modified organisms; and provides community economic benefit that results in jobs and fair labor conditions.”

Much of the document reads like a list of practices and standards that farmers and industry should be adopting regardless of what they grow or produce — whether it’s for biodiesel or not — but there are many included items that are specific to the biodiesel industry. Some examples:

* Use waste oils and rendered oils as a biodiesel feedstock before using crops
* Make sure that the energy put in to making biodiesel is less than the energy produced
* Use local feedstocks whenever possible

Once again, you can read the draft document for yourself by clicking here. Don’t forget to give the Sustainable Biodiesel Alliance your two cents worth as well.

Biodiesel

USDA Study Reveals Sweet Potatoes Yield More Carbs for Ethanol Than Corn

According to Biofuels Business, sweet potatoes yielded two to three times the carbohydrates for ethanol production as field corn, research by the United States Department of Agriculture (USDA) Agricultural Research Service (ARS) found. ARS released a report on the findings today. Scientists received similar results with tropical cassava.

The research found that sweet potato carbohydrate yields were similar to the lower limits of those produced by sugarcane, the highest-yielding ethanol crop. Another advantage for sweet potatoes and cassava is that they require much less fertilizer and pesticide than corn, the ARS said.

Lew Ziska, a plant physiologist at the ARS Crop Systems and Global Change Laboratory in Beltsville, Maryland, U.S., performed the study with colleagues from Beltsville and at the ARS National Soil Dynamics Laboratory in Auburn, Alabama, U.S.

The disadvantages to cassava and sweet potato were higher start-up costs, particularly because of increased labor at planting and harvesting times. Further studies are needed to get data on inputs of fertilizer, water, pesticides and estimates of energy efficiency. Overall, the data indicate it would be worthwhile to start pilot programs to study growing cassava and sweet potato for ethanol, especially on marginal lands.

corn, Ethanol, News

New Law Means New Labels for Biodiesel Pumps

John Davis

This December, the Federal Trade Commission’s new rules on labeling of biodiesel pumps kicks in. Basically, pumps that dispense greater-than-5-percent biodiesel blends will have to have a label indicating that pump’s blend.

The National Biodiesel Board hosts a web site, AllThingsBiodiesel.com, that sells the new labels… among the many other objects sold there:

“Our goal is two-fold. We want to help petroleum retailers comply with the labeling law as painlessly as possible, while at the same time expand their marketing efforts,” said Doug Whitehead, Director of Operations for the National Biodiesel Board. “We have eye-catching pump topper kits available for sale, for those whose goal is to not only comply with the regulations, but actually market biodiesel to consumers and boost demand.”

The FTC published the final ruling on biodiesel pump labeling on June 23. One of the approved labels is for blends between 5 and 20 percent and the second is for B100 (100 percent biodiesel). If a retailer has a blend between 21 and 99 percent, an order can be placed on AllThingsBiodiesel.com. Hosted by NBB, All Things Biodiesel is the premier online biodiesel marketplace. It houses a directory, an information exchange, classified ads and a store for biodiesel merchandise and marketing materials.

Blends of 5 percent biodiesel and less do not need the label since they meet all the same standard for petroleum diesel, D975.

Biodiesel

MO DNR Holds Fleet Managers Workshop

The Missouri Department of Natural Resources (DNR) held their annual fleet manager workshop yesterday in Jefferson City, Missouri. Approximately 45 were in attendance and five speakers presented, including State Fleet Manager Cindy Dixon (pictured).

Discussed were issues relating to annual reporting, alternative fuel purchasing requirements, E85, and biodiesel among more.

“It’s exciting to see the drastic increase in E85 fueling stations throughout Missouri this past year,” said Missouri DNR Energy Specialist and Alternative Fuels Coordinator Cindy Carroll who moderated the workshop. Missouri added 68 E85 sites from Aug. 2007 to Aug. 2008 bringing the total to 97 facilities. Missouri ties Iowa for 5th in the largest number of E85 fueling locations.

Carroll noted that the state requirement for alternative fuel vehicle purchase has increased from 50 percent to 70 percent over the past year. Also, E85 fuel usage among state fleet vehicles has increased by 53 percent.

Biodiesel, E85, Energy, News

Ethanol Conversion Kit Market Grows

Cindy Zimmerman

The business for flex-fuel conversion kits is booming, according to a company selling low-cost units worldwide.

curtis lacy FFIFuel Flex International (FFI) provides technology to allow any fuel-injected vehicle to run on ethanol or gasoline “without pushing a button or flipping a switch,” says FFI president for marketing and distribution Curtis Lacy, who was talking up his product with everyone at the recent Ethanol Conference and Trade Show in Omaha.

“Our system is very simple for the average user. It’s a simple plug and play device which you attach to your fuel injector connectors and ground to your battery and start using ethanol – anywhere from E100 to regular gasoline.” Lacy says the technology was developed in Brazil and is now being marketed in 34 countries, including most recently Thailand and the Philippines. “We currently manufacture our own unit now, so it’s an all-American made product,” he said. The units retail for between $289 and $459.

Fuel Flex InternationalOne of the most common questions from potential customers in the United States is whether installing the kit will affect their vehicle warranties, but Lacy claims they have had no problems with that. There is also the issue of EPA certification, which currently has only been granted to another company, Flex Fuel US. Lacy says they are working on getting that approval.

Lacy believes the demand for flex-fuel conversion kits will grow as higher ethanol blends become more available nationwide because even if car makers start selling only flex-fuel vehicles in the US there will continue to be a large segment of used vehicles for sale that are not flex-fuel capable.

Listen to an interview with Lacy from the ACE conference here:
[audio:http://www.zimmcomm.biz/ace/ace-fuel-flex.mp3]

ACE, Audio, Ethanol, Flex Fuel Vehicles

Analyst Calls Food Versus Fuel a “Sound Bite”

Cindy Zimmerman

Analysts with a major agricultural financial institution say alternative fuels are just one of the many factors causing higher food prices.

RabobankKarol Aure-Flynn, executive director of the Rabobank Food & Agribusiness Research and Advisory department, says “food versus fuel” is basically a misleading sound bite. “The fallacy of the headline is that there is a direct competition between the two; that it’s either or. The reality is that strong global economic growth has changed the demand equation for U.S. commodities,” he said in a recent Rabobank podcast. “The depreciation of the U.S. dollar, soaring energy costs and changing trade policies are also contributing to the cost of commodities, which in turn is raising the cost of food — it’s not just fuel, it’s a combination of all of these factors.”

Aure-Flynn also notes that while prices at the farm level have increased this year, they have been outpaced by production costs for farmers.

“Farmers’ profitability doesn’t change retail prices. And farmers’ profitability isn’t guaranteed by high grain prices. The same factors that are lifting grain prices are lifting production costs,” said Aure-Flynn. “So, yes, the farm price index is at 162 percent of what it was 1990-1992, but at the same time the price index measuring what farmers pay — for services, farm wages — is 189 percent of base.”

Rabobank is a global financial services leader providing institutional and retail banking and agricultural finance solutions in key markets around the world.

Agribusiness, Ethanol, Food prices, News

Florida Farm to Fuel Summit On-Line

Cindy Zimmerman

The third annual Florida Farm-to-Fuel Summit was a huge success with more than 460 participants, exceeding last year’s attendance according to organizers.

FL Farm to FuelPresentations are now available online at the conference website. The wide variety of presentations includes some very interesting information about alternative biofuels feedstocks, such as sweet sorghum, sugarcane, jatropha, perennial grasses and even sweet potatoes.

Organizers of the event say that due to the favorable response from attendees, they expect the conference to be returning to the Rosen Shingle Creek next year.

Biodiesel, Cellulosic, conferences, Ethanol