Open Fuel Standard Act Introduced

Cindy Zimmerman

U.S. Senators Sam Brownback (R-KS), Ken Salazar (D-CO) and Joseph Lieberman (I-CT) today introduced the Open Fuel Standard Act.

The legislation would require that half of all new automobiles starting in 2012 be flex-fuel vehicles warranted to operate on gasoline, ethanol, and methanol, or be warranted to operate on biodiesel. The requirement would be increased to 80 percent by 2015.

Open Fuel press conferenceNational Corn Growers Association Vice President of Public Policy Jon Doggett spoke during a press conference Tuesday to introduce the bill. “The Open Fuel Standard Act is an important piece of legislation,” said Doggett. “Flex-fuel vehicles are aptly named because they give consumers a choice. Corn producers are committed to producing more corn on fewer acres using better technology to achieve the goals of the Open Fuel Standard Act.”

Senators Susan Collins (R-ME) and John Thune (R-SD) are also co-sponsoring the bill. Also joining the senators to introduce the bill were representatives from the Set America Free Coalition, National Association of Wheat Growers and the Methanol Institute.

Pictured from left to right are: Sen. Salazar, Sen. Lieberman, Jon Doggett, and Sen. Brownback. (photo from NCGA)

Ethanol, Flex Fuel Vehicles, Government, News

EPA Delays Ethanol Waiver Decision

Cindy Zimmerman

U.S. Environmental Protection Agency Administrator Stephen Johnson announced today that the agency will not meet its July 24 deadline to issue a decision on the renewable fuels standard (RFS) waiver request submitted by Texas Governor Rick Perry.

EPAJohnson said in a statement, “Given the amount of work that remains to sufficiently answer the Texas request for a waiver from the Renewable Fuels Standard (RFS), it is now clear that a final decision on the request will not be completed by July 24. Rather, additional time is needed to allow staff to adequately respond to the public comments and develop a decision document that explains the technical, economic and legal rationale of our decision.”

EPA received over 15,000 comments on the issue and the agency is also required to consult with the Departments of Agriculture and Energy in considering whether to grant or deny the waiver request.

Johnson stated that “the process remains fair and open and no agreements have been made with any party in regard to the substance and timing of the decision on the waiver request.”

A final decision is now expected in early August.

Ethanol, Government, News

Candidate Positions on Ethanol

Cindy Zimmerman

Presidential candidates Barack Obama and John McCain spoke to the American Farm Bureau Federation’s Council of Presidents meeting in Washington DC last week by teleconference about various issues of importance to agriculture, including it’s role in America’s energy needs.

McCain ObamaMcCain heralded his “Lexington Project” to make America energy independent which includes alternative fuels, ethanol, nuclear and offshore drilling. The plan includes calling on automakers “to make a more rapid and complete switch” to flex-fuel vehicles, as well as increase support for second generation ethanol, that would involve eliminating “mandates, subsidies, tariffs and price supports that focus exclusively on corn-based ethanol and prevent the development of market-based solutions which would provide us with better options for our fuel needs.”

Obama stated that his goal would be to phase in a 2 billion gallon cellulosic ethanol renewable fuel standard into the nation’s fuel supply by 2013.

“I am not interested in rolling back the renewable fuel standard. I think it is something that is critically important to supporting the agricultural sector and rural America, and I think that the use of ethanol as a scapegoat for rising fuel prices is misplaced. If we don’t invest in American grown biofuels and advanced technologies, our nation is never going to be energy independent. And that is why I am proud to have been a consistent supporter of biofuels and I will continue to be so in the future.”

Cellulosic, Ethanol, Farming, Government, News

VeraSun Starts Up New Ethanol Plant

Cindy Zimmerman

VeraSun Energy has announced the startup of its 110 million gallon per year ethanol biorefinery located near Hankinson, N.D. The Hankinson production facility marks the 12th VeraSun biorefinery in operation, increasing the company’s annual operating capacity to 1.2 billion gallons.

VeraSunConstruction on the Hankinson facility began in August of 2006 and was completed in June. The opening of the plant was delayed due to market volatility.

“The decision to begin production at Hankinson is based on a number of factors, including an improved margin environment as well as other business considerations unique to the facility,” VeraSun CEO Don Endres said. “We continue to closely monitor market conditions and make decisions that are in the best interest of our company.”

VeraSun took ownership of the facility through its merger with US BioEnergy, which became final in April.

Ethanol, Facilities, News

Verenium Advances Cellulosic Ethanol in Asia

Cindy Zimmerman

VereniumUS biofuels development company Verenium Corporation and Japanese trading company Marubeni Corporation recently announced the opening of a three million-liter-per-year cellulosic ethanol plant in Saraburi, Thailand.

MarubeniThe cellulosic plant in Thailand is co-located with a facility that will produce ethanol from sugar-cane derived sucrose, which is widely abundant in the region. Sugar cane bagasse, the biomass residue from the sugar cane plant, will be the primary source of feedstock for the cellulosic facility, which will be converted into ethanol using Verenium’s process technology.

Marubeni and Tsukishima Kikai Company previously incorporated Verenium’s technology into BioEthanol Japan’s 1.4 million-liter-per-year cellulosic ethanol plant in Osaka, which utilizes construction wood waste as a feedstock.

Cellulosic, Ethanol, Facilities, International, News

Senators Introduce Ethanol Pipeline Bill

Cindy Zimmerman

Senators Tom Harkin (D-IA) and Richard Lugar (R-IN) have introduced legislation aimed at helping to efficiently bring ethanol to communities across America by giving pipeline owners the same tax benefits they receive for moving petroleum products.

Richard Lugar Tom HarkinThe tax code currently states that Publicly Traded Partnerships are supposed to earn 90-percent of income from the exploration, transportation, storage or marketing of depletable natural resources like oil, gas and coal. The Harkin-Lugar bill would change the tax code so that these Publicly Traded Partnerships can earn qualified income from the transport, storage or marketing of any renewable liquid fuel approved by the Environmental Protection Agency.

Harkin says the bill “makes a simple change to the tax code that meets the demands and realities of the 21st century energy marketplace, removing barriers so that biofuels producers in the Midwest and elsewhere will have an efficient, inexpensive way to transport these renewable fuels to the market.” According to Lugar, “Overcoming problems in moving ethanol through pipelines, as Brazil has done, is important in developing the full promise of America’s renewable fuels.”

Ethanol, Government, News

Federal Grant Helps Buy Cincy’s Biodiesel Buses

John Davis

Cincinnati has received a federal grant to help the city’s mass transit system buy some biodiesel buses.

This story from the Business Courier of Cincinnati quotes Ohio U.S. Sen. George Voinovich in announcing a $776,000 Clean Fuels Grant from the Federal Transit Administration through the U.S. Department of Transportation to the Southwest Ohio Regional Transit Authority (SORTA):

Funds provided by the grant will purchase as many as three biodiesel fuel buses for Cincinnati’s Metro bus system, according to a news release.

“I’m pleased that Cincinnati will be able to improve its transportation services while also supporting environmentally friendly biodiesel technology with this funding,” Voinovich said in the release. “Many people rely upon public transportation, and it is critical that we continue to improve and restore regional system infrastructures in Ohio.”

Biodiesel

Beef Tallow to Fuel Nebraska Biodiesel Plant

John Davis

A beef producer that cranks out 22 million pounds of tallow a week will be turning that waste into another alternative to non-renewable petroleum.

This story from the Sioux City (IA) Journal says Beef Products, Inc., better known as BPI, the world’s largest producer of lean boneless beef, has partnered with Natural Innovative Renewable Energy to build a 60-million-gallon-a-year biodiesel refinery in South Sioux City, Nebraska:

The company hopes to start construction this fall or early next year, said Jim Venner, a Breda, Iowa-based consultant for the biodiesel project. After the startup, production could begin as early as 18 months later, he said.

The $100 million project would become Nebraska’s largest biodiesel plant, and the first in the state to make the clean-burning, renewable fuel from animal fat.

Gov. Dave Heineman, who headlined Friday’s groundbreaking ceremony, said he expects Natural Innovative Renewable Energy to help elevate the Cornhusker state’s biodiesel industry to the same level as its corn-based ethanol production, which now ranks No. 2 in the nation.

“We want to be out of front and be a leader in terms of biodiesel, and that’s the opportunity we have here today,” Heineman told an audience of about 100 who gathered under a large tent set up in a field in the industrial park.

Right now, there are three soy-based biodiesel plants in Nebraska. But with high soybean prices, and the fact that Nebraska leads the nation in commercial commercial cattle slaughter… and that produces about a billion pounds of tallow each year… it certainly makes sense to use this resource for biodiesel.

Biodiesel

EPAC Holds Board and Membership Meeting

EPACEthanol Producers and Consumers (EPAC) kicked off their 18th Annual EPAC Conference on July 20 with their Board and Membership Meeting. The event is taking place at the Hilton Garden Inn in Kalispell, Montana and the theme of this year’s conference is “Ethanol: Fuel AND Food”.

“This conference will help to counter the negative news items we hear today regarding ethanol,” noted Shirley Ball, president and executive director of EPAC.

During the board meeting, the following were decided to serve on the the board of directors: Tim Babcock, Gary Schaff, Linda Nielsen, Tom Kryzer, Stan Ozark, Mike Allen, Russ Montgomery, Michelle Kautz, Matt Wilson, Julie Ward, Dan Schwartzkopf and Phil Madson.

Other items discussed included EPAC’s fiscal year budget, grant opportunities, membership, future conferences and more.

An evening reception sponsored by Katzen Interenational, Inc and CHS brought the attendees together.

Ethanol, News

Australia Race Cars to Run on Ethanol

Cindy Zimmerman

Race cars in the Land Down Under will be running on 85 percent ethanol next year.

V8 SupercarsAustralian media sources report that V8 Supercars chairman Tony Cochrane announced on Sunday that all cars in the main V8 series and the Fujitsu Development Series will run on E85 made from sugar cane for at least five years starting in 2009.

“We want to be a leader in the area of emissions and renewable resources – we don’t want to be a follower,” Cochrane said. “Our job is educational. We want to show if we can run it in our cars, maybe it’s a consideration for the average motorist.”

Ethanol, News, Racing