Home of Pony Express Making Run at Biodiesel Capitol

John Davis

St. Joseph, Missouri is becoming a center for renewable fuels in this country as the city will soon become home to its third biodiesel plant, joining an ethanol refinery in the area.

This story in the St. Joseph News-Press says the groundbreaking ceremony this week was purey ceremonial as Terra Bioenergy has been busy for some time, pouring concrete slabs for the storage tanks and installing much of the equipment:

The $25 million plant is scheduled to be complete in February. It will employ 25 to 30 people and produce 15 million gallons per year, said David Holcombe, chief executive officer of Terra.

Terra’s plant will primarily use animal fat to produce biodiesel, which can be used in virtually all diesel engines. The animal fat gives Terra an edge over most other operations, which use soybean or vegetable oil, Mr. Holcombe said.

St. Joseph has two operating biodiesel plants and an ethanol facility. Rep. Martin Rucker said the city is well on its way to being the state’s alternative fuel capital.

“The renewable fuels industry is a big part of our future,” he said. “Whether we want to get on board or not, it’s going to happen.”

Nearly 100 investors own Terra Bioenergy.

Biodiesel

Texas Approves Major Wind Energy Infrastructure Project

John Davis

The Public Utility Commission of Texas has approved $5 billion worth of new power lines that will carry wind energy from the western part of the state to more populated areas.

This article in the Houston Chronicle says it will give a major boost to a state that is already leading the country in wind-generated power:

It should boost the state’s wind farm business, already the largest in the nation, to even greater levels. It would increase capacity for wind generation to 18,456 megawatts.

The plan, which is expected to be finalized later this month, is a middle ground between five scenarios ranging from $3 billion to $6.4 billion.

Tom “Smitty” Smith, Texas director of Public Citizen, said Texans will ultimately benefit from higher levels of renewable energy.

“What this will net is significant long-term savings because we will not be burning nearly as much natural gas, and it will reduce the overall cost of electricity,” Smith said. “It also will create significant new jobs and reduce pollution in our urban areas.”

Wind

Repeal of Missouri Ethanol Standard Would be Costly

Cindy Zimmerman

Missouri corn growers say repealing the state ethanol standard would be a costly mistake.

Missouri CornThe CEO of the Missouri Corn Growers Association says that while recent political proposals claim repealing the statewide ethanol standard would lower fuel and food prices, the effect would be quite the opposite.

“Simple economics dictate that increasing supply helps reduce price,” said Gary Marshall. “Utilizing a fuel produced and refined in Missouri is part of the reason our state has some of the lowest gas prices in the nation.”

Gary MarshallThe Missouri Renewable Fuel Standard requires gasoline to be blended with 10 percent ethanol when ethanol is cheaper than conventional gasoline. This price provision means ethanol cannot increase the cost to consumers, Marshall said.

He notes that blaming ethanol for skyrocketing food and fuel costs is not supported by the facts. According to figures from the U.S. Bureau of Labor Statistics, while households are facing a 23 percent increase in their total food costs, they are facing a 335 percent increase in their gasoline costs since 2002.

“If fuel prices had increased at the same rate as food, we would only be paying $1.39 per gallon for gasoline,” Marshall says. “And while grocery bills are going up due mainly to increasing transportation, labor and marketing expenses, Missouri’s food costs remain inline with other neighboring states.”

corn, Ethanol, News

DOE Awards Cellulosic Grants

Cindy Zimmerman

Dept of EnergyThe U.S. Department of Energy has awarded grants of up to $40 million over five years for two small-scale cellulosic biorefinery projects, one in Wisconsin and one in Louisiana.

Flambeau River BioFuels received approval to construct and operate a biorefinery at an existing pulp and paper mill in Park Falls, Wisconsin. When completed, the facility will produce at least 1 trillion BTUs of renewable energy for the host mill and 6 million gallons of transportation (sulfur-free diesel) fuels per year, which the company says will make it the first integrated pulp and paper mill in North America to be fossil fuel free. The biorefinery is expected to be operational in 2010.

VereniumVerenium received the second grant which will be used to support ongoing activities at its 1.4 million gallon per year demonstration-scale facility in Jennings, LA.

Verenium president and CED Carlos A. Riva said, “Government support such as this is a great help in advancing the development of commercially viable biofuels, and supports the rapidly emerging cellulosic ethanol industry in addressing America’s urgent need for alternative fuels.”

These two biorefinery projects are the final round of selections for DOE’s competitive small-scale biorefinery solicitation. Earlier this year, DOE selected seven other projects, comparable in size and scope, to receive up to a total of $200 million.

Cellulosic, Ethanol, Government, News

Poll Finds Bipartisan Support for Ethanol

Cindy Zimmerman

By a margin of 2 to 1, American voters believe increasing the use of renewable fuels like ethanol should continue, according to a new poll conducted by the Democratic firm of Greenberg Quinlan Rosner Research and the Republican firm Public Opinion Strategies.

POS GQRRThe survey of 1,200 registered voters conducted June 23 – July 1 also revealed that nearly half of Americans believe that skyrocketing gasoline and fuel prices are the factors most responsible for rising food prices.

According to the survey, asked if they favor or oppose continuing to increase use of ethanol, 59 percent come out in favor, while just 30 percent opposed. Support is even higher (63 percent) among environmentalists. “Men and women, older voters and younger voters, high school educated and college graduates, and voters from all regions in the country support this alternative fuel,” said the survey analysis. Most impressive, however, is that both Democrats and Republicans polled agree on the increased use of ethanol.

RFAThe survey was commissioned by the Renewable Fuels Association. “Overwhelming broad, bipartisan support for increasing the use of ethanol clearly shows that coordinated efforts designed to demonize American farmers and ethanol producers are not having the desired affect,” said RFA president Bob Dinneen. “Americans see through the smoke and mirrors, weigh the merits of both sides, and conclude that ethanol is an important component of our nation’s energy future.”

Ethanol, News, Research, RFA

NEVC Concludes 2008 Summer Board Meeting

NEVCThe National Ethanol Vehicle Coalition (NEVC) concluded their 2008 Summer Board of Directors Meeting in Washington D.C. on Tuesday, July 15. The meeting was held in conjunction with the National Corn Grower Association’s Corn Congress.

The board meeting was well attended by board members ranging from automobile manufacturer representatives, ethanol producers, state corn growers and more. Items on the agenda covered budget items, membership, and issues that are hindering the advancement of E85 infrastructure such as the lack of Underwriters Laboratory certification on E85 dispensers.

KlobucharThe NEVC along with cosponsors hosted a reception for the attendees of the Corn Congress on Monday, July 14. Also, a reception at the nation’s Capitol was held on July 15. Minnesota Senator Amy Klobuchar addressed the crowd at the reception. She thanked the Minnesota Corn Growers Association for their leadership on pushing this year’s Farm Bill to its success.

Sponsors for the meeting included: the Missouri Corn Growers Associaiton, VeraSun Energy, ICM, Dresser Wayne, Ohio Corn Growers Association, Minnesota Corn Growers Association, Kansas Corn Growers Association, Siouxland Energy and Livestock Cooperative, Alliance of Automobile Manufacturers, Kentucky Corn Growers Association, Mid-Missouri Energy, Gilbarco Veeder-Root, White Energy, Clean Fuels Development Coalition, and Chrysler Corporation.

Photo above features Minnesota’s Amy Klouchar with members of the Minnesota Corn Growers Association.

E85, Ethanol, National Ethanol Vehicle Coalition, News

Blue Hawaii Using Green Algae for Biodiesel

John Davis

While the waters along those world-famous Hawaiian beaches will still be picture-perfect blue, some folks in the Aloha State are banking on some murky-green H2O for power.

This story from the Honolulu Star-Bulletin says three companies will team up to develop the world’s first commercial microalgae facility on Maui that will produce oil for biodiesel and and animal feed.

Alexander & Baldwin Inc., HR BioPetroleum Inc. and Hawaiian Electric Industries subsidiaries Hawaiian Electric Co. and Maui Electric Co. said yesterday they have signed a tentative agreement to build an algae plant on up to 1,000 acres of agricultural land owned by A&B next to HECO’s Maalaea power plant starting in 2011.

It would be one of the first commercial plants of its kind in the world, according to Ed Shonsey, HR BioPetroleum chief executive officer, and adds to several major isle biodiesel projects announced in the past two years.

“It’s a very new area in the field of biofuels and alternative energy,” Shonsey said. “There are approximately 20 companies in the world that are investigating this approach and of those 20 there are only approximately two that actually have pilot facilities and have demonstrated the ability to do it outside the lab and scale it up, and we are one of those.”

The plant is expected to be profitable in its first year of operation.

Biodiesel

GM and National Governors Assn. Partner for Additional E85 Stations

GMMinnesota’s Governor Tim Pawlenty recently announced a partnership between General Motors Corp. (GM) and the National Governors Association which will assist in increasing the number of E85 fueling stations across the country. No specific numbers have been announced but the goal is to boost the slow pace at which new pumps capable of dispensing 85% ethanol fule have been added in recent years.

GM agreed to find the appropriate locations to add the E85 through the numbers in their customer database of registered vehicles. They will aslo assist in finding state grants for the sites. The automaker recently announced their 18 vehicle flexible fuel lineup for model year 2009. Ford, GM and Chrysler have all agreed to offer have their vehicle line as E85 compatible by 2012.

GM has assisted in installing about 300 E85 pumps in 15 states over the last three years. GM cars and trucks account for 3 million of the 7 million flex-fuel vehicles on U.S. roadways and the company produced more than 1 million flex-fuel models in North America and Brazil last year.

Car Makers, E85, Ethanol, Facilities, Flex Fuel Vehicles, News

Ethanol Key Issue in MO Governor’s Race

John Davis

Ethanol has become the key issue in the race for the governor’s mansion in Missouri, as the two main Republican contenders square off over the state’s new ethanol mandate.

Sarah Steelman, who is also the State Treasurer, has now switched her position to opposing Missouri’s mandate that requires that practically every gallon of gasoline sold in the state must contain at least 10 percent ethanol. Just earlier this year, she had backed the mandate, but now has sided with Big Oil’s contention that it is raising food and fuel prices… a contention her opponent in Missouri’s August 5th Republican Primary, Congressman Kenny Hulshof refutes with plenty of facts from ag and non-agricultural sources in this article from the St. Louis Post-Dispatch:

– A recent analysis from Merrill Lynch concluded that oil prices would be about 15% higher, if it weren’t for biofuels like ethanol and biodiesel. (Multiple press accounts)

“- A U.S. Department of Agriculture and the U.S. Department of Energy analysis found that without ethanol, gas would be higher by 35 cents per gallon. (USDA & DoE letter to Senate Energy & Natural Resources Committee Chairman Jeff Bingaman, June 11, 2008)

“- An Iowa State University study found that ethanol has lowered gas prices by 30 to 40 cents per gallon. (Omaha World-Herald, editorial, May 11, 2008)

“- A Missouri-based A.G. Edwards analyst asserted: “Ethanol blending could help ease U.S. refining bottlenecks and that could be ultimately reflected in lower prices at the pump.” (Reuters, February 14, 2008)

“- The International Energy Agency (IEA) states that biofuels make up about 50 percent of the extra fuel coming to the market from sources outside the OPEC oil cartel. William Ramsey, deputy executive director of the IEA, said: “If we didn’t have those barrels, I am not sure where we would be getting those half a million barrels.” (The Financial Times, April 26, 2008)

Hulshof’s campaign has compared Steelman to Venezuelan strongman Hugo Chavez, who, as an oil dictator, also has no interest in the development of ethanol in the U.S.

Ethanol, Government, News

Iowa College Offering Wind Turbine Technician Program

John Davis

As the need for wind energy grows… expected to grow at double-digit rates in capacity over the next 20 years… the need for workers who can construct, repair and maintain those green energy systems grows as well. To help meet that need, a college in Northwest Iowa… an area known for its wind power generators… is offering a program to train those workers.

This story from KTIV-TV in Sioux City says Iowa Lakes Community College in Estherville (in full disclosure, my alma mater) is helping meet the growing need:

Even with all of that growth there is one place where the wind industry is falling short. “Man power, there is a shortage of man power to man the wind turbines that are being operated across the country and that is where our program comes in,” Zeits said.

According to Iowa Lakes Community College they were the first in the state to start the two year program that trains technicians to work on wind turbines. Students in the wind energy program learn everything from how to repair the blades to the basic physics of wind energy.

According to the American Wind Energy Association those trained workers can’t come to soon. “We expect that we are going to have a need for a 180,000 workers in the industry within the next 22 years,” said [John] Dunlop.

The article goes on to point out that portion of Iowa, Southern Minnesota and South Dakota is right in the middle of a booming wind power generation area… right around that little college that has a wind-powered sailboat as its symbol. Kind of befitting, huh?

Wind