Company to Use Sugarcane Ethanol for Chemicals

Cindy Zimmerman

A Florida biotech company has created a new subsidiary to use sugarcane ethanol for chemical production.

IBC Renewable Chemicals CorpIndustrial Biotechnology Corporation has formed Renewable Chemicals Corporation to produce chemicals utilizing sugar cane based ethanol as feedstock source material instead of petroleum.

According to an IBC news release, the company “plans to produce these renewable chemicals customized to the specific sustainability and pricing requirements of the consumer packaging, energy, agricultural, pesticides, materials and polymer industries.”

“There is tremendous market interest for plastics derived from renewable, sustainable sources” says Industrial Biotechnology Corporation CEO Andy Badolato. “Major retailers, consumer product companies, and the packaging and plastics industries are working together to implement solutions to lessen our dependence upon foreign oil and to reduce global warming. The utilization of sugar cane ethanol as a chemical feedstock is the next logical step, after its use as an alternative fuel.”

Ethanol, News

Study Credits Ethanol Policy With 25 Percent of Corn Price Hike

Cindy Zimmerman

One of the more significant findings of a Purdue University study released this week on food price drivers is that ethanol policy is only responsible for $1 of the $4 price increase in corn prices since 2004.

Farm Foundation ForumEconomist Wally Tyner says between 2004 and the beginning of 2008, oil went from $40 per barrel to $120 per barrel at the same time corn prices increased from $2.00 a bushel to $6.00. “Of that $4 increase, about $1 is due to the US subsidy and about $3 is due to the higher crude oil price,” Tyner told a Farm Foundation forum on the study earlier this week. “So even if all the subsidies go away tomorrow, corn prices would still be high, unless we chose to ban use of corn for ethanol.”

Farm Foundation Forum Brad LubbenUniversity of Nebraska policy specialist Brad Lubben, who gave his analysis of the study at the forum in terms of public policy, said this is an important point to consider when attempting to change the Renewable Fuels Standard in an effort to lower food prices because it is the “easiest” to manipulate. “It’s an important consequence to realize that the easiest policy to attack may have relatively little significance and little impact on the current supply and demand balance for these ag commodities and for energy,” Lubben said.

Lubben pointed out that while it may seem that changing the RFS is easy, EPA has already had to postpone its decision on the request for a partial waiver of the RFS because of the challenges they are having in analyzing all the comments and data they have on the issue.

Ethanol, Farm Foundation, Food prices

Ethanol Report on Food Price Study

Cindy Zimmerman

RFA PodcastThe Farm Foundation study on food price drivers released this week in Washington DC was the focus of a forum held at the National Press Club.

This edition of “The Ethanol Report” features comments from the Farm Foundation forum and report on “What’s Driving Food Prices?” Featured are Farm Foundation President Neil Conklin, Purdue University economist Wally Tyner, and University of Nebraska public policy analyst Brad Lubben.

You can subscribe to the twice-monthly “The Ethanol Report” by following this link.

Or you can listen to it on-line here: [audio:http://www.zimmcomm.biz/rfa/ethanol-report-17.mp3]

Audio, Ethanol, Food prices, News, RFA

CNN Starts Biodiesel-Fueled Road Trip

John Davis

At a time when fuel prices are through the roof, a major American news organization is sponsoring a road trip across the country… running on biodiesel.

CNN.com producer Cody McCloy and web developer Brian Hardy jumped in a 1978 International Harvester Scout and kicked off the two-week trip on Friday, going from San Francisco to Atlanta. Starting Monday morning at 9:40, they’ll be blogging about their adventure on the green fuel on CNN.com Live. This article tells a little bit about what you can expect to see from the trip… and it won’t just be about biodiesel:

During our road trip, we’ll blog and report about what kind of mileage we’re getting with biodiesel fuel and how easy it is to find places that sell it.

Biodiesel is just one of several biofuels powering more and more U.S. cars and trucks. Mesa, Arizona, for example, has switched its fleet of 1,000 municipal vehicles such as fire engines and street sweepers to biodiesel and other green fuels such as ethanol, and compressed natural gas. Video Watch for details on benefits of biodiesel fuel »

Some biofuels are less expensive per gallon than gasoline — cutting the average cost of gas by 20 to 35 cents per gallon, according to the U.S. Department of Energy. An average American family can save up to $300 per year by using ethanol, according to the DOE Web site.

Now while they’re about half right when they say biodiesel is a mixture of diesel and vegetable oil, they do get it right when they point out the green fuel is biodegradable and is cleaner than petroleum-based diesel.

Should be an interesting trip to follow. You can see an interactive map here, and as I mentioned earlier, they’ll be blogging on CNN.com Live starting Monday morning.

Biodiesel

New Company Looks to Lead U.S. Hydrogen Market

John Davis

A new company has been formed that looks to lead the U.S. hydrogen market.

Eden Hydrogen Inc. is the product of the merging of two American subsidiaries of Australian-based Energy Ltd… Hythane Company of Denver, Colorado and HyRadix of Des Plaines, Illinois. This story from the Wall Street Journal’s Market Watch web site says the new company will be headquartered in Des Plaines, Illinois.

“Eden Hydrogen is a milestone in our growing capacity to deliver integrated hydrogen solutions to customers in the U.S. and globally,” said Greg Solomon, Executive Chairman, Eden Energy Ltd. based in Perth, Australia. “We have captured the hydrogen supply chain within a single, efficient company.”
Robert Gray has been named Chief Executive Officer of Eden Hydrogen Inc. He was formerly Chief Executive Officer of Eden Innovations Ltd. and a past president of HyRadix. Roger Mamaro, President of Hythane Company, will lead global operations and Dave Cepla, President of HyRadix, will lead global sales and marketing for the new company.

“As consumers in the U.S. and around the world demand cost effective and clean alternatives to petroleum, the market for hydrogen-based fuels and technologies is rapidly expanding,” said Robert Gray, CEO, Eden Hydrogen Inc. “Eden Hydrogen is uniquely positioned to provide economical onsite hydrogen generation, delivery, and storage.”

The announcement comes on the heels of a study that recommends the government spends $55 billion over the next 15 years to help hydrogen vehicles are competitive with their petroleum-fueled counterparts on American roads.

Hydrogen

Free Webinar Offered: Improving Your Bottom Line With Ethanol

LugarU.S. Senator Dick Lugar yesterday announced that the International Trade Association at the U.S. Department of Commerce has organized a free webinar titled, “Improving your bottom line with ethanol,” on August 12, 2008, from 2:00 p.m. to 3:30 p.m.

According to the announcement, the web-based seminar will provide U.S. petroleum retailers with information on the current market for E85, ethanol conversion logistics and government programs that advance E85 distribution within the United States.

“America needs to transform our transportation sector and cut our oil import bill by establishing biofuels that are available to every motorist in the country. With just 103 E85 pumps in Indiana, too few Hoosiers have access to this competitively priced, high-performance, homegrown fuel. We need to ensure that virtually every new car sold in America is a flexible fuel vehicle and that at least one quarter of American filling stations have E85 pumps,” Lugar said.

The webinar’s schedule is as follows:

2:00-2:05: Introduction of the Webinar Session and the Presenters
2:05-2:25: U.S. Market for E85 Capable Vehicles
2:25-2:45: Ethanol Conversion Options, Logistics, and Contracts for Fuel Provisions
2:45-3:05: Government Assistance and Incentives for Ethanol Conversion
3:05-3:30: Industry Comments and Q&A Session

To subscribe to the event or for more information, contact Shannon Fraser by Wednesday, August 6, 2008 at Shannon.Fraser@mail.doc.gov.

E85, Energy, Ethanol, Government, News

California Plant to Make Ethanol from Waste

Cindy Zimmerman

BlueFire Ethanol Fuels of California has been given the go-ahead to build the nation’s first commercial biowaste-to-ethanol facility in Los Angeles County.

Blue Fire EthanolThe county’s regional planning commission unanimously agreed to issue a zoning permit to BlueFire Ethanol to build a $30 million facility in Lancaster, located north of Los Angeles. The plant will be built next to a landfill and construction is scheduled to begin in the fall.

BlueFire Ethanol selected the Lancaster location because an estimated 170 tons of biowaste material, including woodchips, grass cuttings and other organic waste, already passes by the property every day. The plant is also designed to use reclaimed water and lignin, a byproduct of the production process, in order to produce its own electricity and steam.

The new facility will use BlueFire’s commercially-ready concentrated acid hydrolysis technology process which could convert the waste into as much as 3.2 million gallons of cellulosic ethanol per year.

Cellulosic, Ethanol, News

New Alliance for Food and Fuel

Cindy Zimmerman

Alliance For Abundant Food and EnergyA group of major players in the agribusiness sector have joined together to highlight the ability of American agriculture to meet both food and energy needs.

The Alliance for Abundant Food and Energy includes Archer Daniels Midland, DuPont, John Deere, Monsanto, and the Renewable Fuels Association.

The alliance asserts that “By growing more crops and developing more efficient ways of processing them, we can produce enough food to meet the world’s needs. The Alliance for Abundant Food and Energy understands that innovations in Agriculture can support the development of greater productivity, enabling farmers to effectively supply both the world’s growing food and energy demands.”

The companies involved have contributed towards a fund that will be used for national advertising and lobbying efforts on Capitol Hill.

Ethanol, Farming, Food prices, News

Run on Biodiesel, Keep Your Warranty

John Davis

With the rising interest in biodiesel and the increasing popularity of biodiesel-fueled vehicles (as we reported last Tuesday, July 22nd), consumers need to know how they can use the green fuel and still keep their manufacturer’s warranty.

Recently, biodiesel received ASTM approval for meeting standards for fuel use. That means that any biodiesel that meets that standard is as safe as regular diesel fuel. But some auto manufacturers and dealers are being a little hesitant in giving biodiesel a thumbs up for use. This story from the gas2.0.org web site has tips from the Northwest Biofuels Association to make sure that those car makers will honor their warranties, even if you use biodiesel:

* Whether or not a biodiesel blend is “recommended” by your automaker is separate from the question of whether the use of biodiesel affects engine warranty coverage. Make sure you know exactly what your automaker specifies.
* Because vehicle warranties only cover parts and workmanship, fuel is not covered under any vehicle warranty.
* Conversely, if consumers that use biodiesel have an engine failure unrelated to the use of biodiesel and the cause is found to be faulty parts or workmanship, then the failure would be covered by the warranty.
* If a customer brings in a vehicle that has used biodiesel and the customer is told that the warranty is voided solely because the customer is using biodiesel, this violates the Magnuson-Moss Warranty Act.
* A vehicle’s warranty cannot be voided solely due to the use of biodiesel.

The association included the tips with a letter written in collaboration with Oregon auto dealers and Oregonian biodiesel distributors.

Biodiesel, Car Makers

Tennessee Cellulosic Ethanol Plant Planned

Cindy Zimmerman

DuPontDaniscoDuPont Danisco Cellulosic Ethanol and the University of Tennessee Research Foundation have announced a partnership to construct an innovative pilot-scale biorefinery and state-of-the-art research and development facility for cellulosic ethanol in Vonore, Tenn.

According to DuPont Danisco, the pilot-scale biorefinery will develop the commercial package for the partnership’s leading cellulosic ethanol technology. The project will also utilize UT’s world-class expertise in cellulosic feedstock production and co-product research, as well as its work with Tennessee farmers to develop the first dedicated cellulosic energy crop supply chain for cellulosic biorefineries utilizing switchgrass. The facility design will incorporate the flexibility to operate on two different non-food biomass feedstocks, including corn stover, cobs and fiber, and switchgrass.

Cellulosic, Ethanol, News