NEC 2027

McCain Opposes Ethanol Subsidies in Iowa

Cindy Zimmerman

Republican presidential candidate John McCain visited the Iowa State Fair Friday, shook a lot of hands, but probably didn’t make a lot of friends in corn country when he clearly stated his opposition to subsidizing ethanol production.

“My friends, we will disagree on a specific issue and that’s healthy,” McCain said during a Des Moines Register forum address at the fairgrounds. “I believe in renewable fuels. I don’t believe in ethanol subsidies, but I believe in renewable fuels.”

Iowa Secretary of Agriculture Bill Northey and Iowa Farm Bureau Federation President Craig Lang stood beside McCain during his speech and applauded as McCain discussed his views on energy policy, despite the candidates remarks about ethanol in the nation’s top producing state.

McCain touted his “Lexington Project” strategy to achieve energy independence. “It’s got to be wind, tide, solar, nuclear,” he said of his plan, which also includes support for cellulosic ethanol and increasing the number of flex-fuel vehicles on the road.

Cellulosic, corn, Ethanol, News, politics

Mississippi State University Biofuels Conference

MSUMississippi State University (MSU) will be holding a Biofuels Conference on August 14 and 15 at McCool Hall on the campus of MSU. The conference will be presented by MSU’s Department of Chemical Engineering, Industrial Outreach Service, and the Sustainable Energy Research Center.

On day 1 (August 14, 2008) of the conference, international experts in the biofuels area will provide information on feedstock availability and cost, as well as the challenges that need to be overcome to sustainably convert these feedstocks into biofuels. At the end of the day, the audience should have the tools to understand the rate of progress of the biofuels industry, and the need to integrate the agriculture, transportation, and chemical sectors to displace large quantities of petroleum from the market. On Day 2 (August 15, 2008), the conference will highlight the state and regional efforts to increase the availability of biofuels. State leaders will inform on specific projects and strategies to reduce petroleum dependency in the region and assist on the establishment and operation of biofuels industries.

A complete agenda can be found by clicking here. To register, click here.

Biodiesel, biomass, Cellulosic, E85, Environment, Ethanol, News

Southeast Bioenergy Conference

Cindy Zimmerman

SE Bioenergy ConferenceAs ethanol industry leaders meet in the Midwest next week, biofuels will be the focus of another conference in Georgia at the same time.

The third annual Southeast Bioenergy Conference will be held August 12th-14th at the UGA Tifton Campus Conference Center. Keynote speaker for the event is Ron Fagen, president and CEO of Fagen, Inc, one of the world’s foremost ethanol plant design-builders. Other speakers include Georgia Governor Sonny Perdue and Gale Buchanan, USDA’s Under Secretary for Research, Education, & Economics.

The conference will focus on the potential for the southeast to be a leader in biofuels production.

Biodiesel, conferences, Ethanol, News

POET Will Provide Cellulosic Update at Conference

Cindy Zimmerman

ACE 08An update on POET’s cellulosic ethanol Project Liberty is on the agenda for next week’s American Coalition for Ethanol conference in Omaha.

Larry Ward, Vice President of Project Development for POET, will provide the update during the general session on Wednesday afternoon. Range Fuels and ICM will also update the session on their own cellulosic projects.

Project LIBERTY, the transformation of a 50 MGPY grain-to-ethanol plant in Emmetsburg, Iowa into an integrated corn-to-ethanol and cellulose-to-ethanol biorefinery, is jointly funded by POET and the United States Department of Energy. Once complete, the facility will produce 125 million gallons of ethanol per year, of which 25 million gallons will be from the cellulose in corn fiber and corn cobs.

Cellulosic, conferences, Ethanol, News

Ethanol Hearing to be Held in Omaha

Cindy Zimmerman

Ben NelsonThe role of ethanol in rising food costs will be at the heart of a Senate Agriculture Committee field hearing August 18 in Omaha.

Sen. Ben Nelson (D-NE), who is a member of the committee, says the event will be a “pro-fact” hearing, not a pro-ethanol hearing. The committee decided to hold the hearing in the face of what Nelson called an ongoing “smear campaign” against ethanol.

“Food, Feed and Fuel Production: Today and Tomorrow” will be held on Monday, August 18 from 9:00 am until noon at the University of Nebraska in Omaha.

The hearing is being held just days after the nation’s ethanol industry meets in Omaha for the American Coalition for Ethanol’s 21st Annual Conference & Trade Show, which will be August 12-14 at the Qwest Center.

Ethanol, Government, News

Natural Gas Measure to Face California Voters

John Davis

Besides the contest between Sens. McCain and Obama to see who will lead this country over the next four years, voters who go to the polls in California this November will decide if the state will fund some hefty rebates to people who buy cleaner-burning, natural gas-powered vehicles.

This story from CNNMoney.com says the proposal could help put a million vehicles on the roads running on the clean fuel:

Natural gas providers are spending millions of dollars on advertising to convince Californians to pass a ballot initiative allowing the state government to invest in the now-tiny market for natural gas-fueled cars and trucks. The push comes as gas producers, emboldened by a windfall of domestic production, press federal lawmakers to help expand the market for gas as a means for reducing dependence on foreign oil and cutting greenhouse-gas emissions.

So far no opposition has been organized against the proposal, which would authorize the state to sell $5 billion in bonds to fund rebates of $2,000 to $ 50,000 each to people who purchase natural gas-powered cars and trucks. Some of the money would be earmarked for research, development and production of renewable energy technology, and education. The plan would cost the state $9.8 billion over 30 years.

The proposition has some pretty powerful friends, including billionaire Texas oilman T. Boone Pickens, who, as you might remember from my July 8th, 2008 post, is backing a plan to ramp up the nation’s wind energy production. He believes that the wind energy will replace natural gas burning in utilities’ generators… freeing that natural gas to be burned in vehicles… freeing the U.S. from its oil addiction.

Government, Legislation, Miscellaneous

ICB, Inc. Inks Long-Term Biodiesel Deal

John Davis

Pretty good deal when you’ve got someone who will buy your entire inventory for three years. That’s what Virginia-based International Coastal Biofuels is facing with a letter of intent from Eco-Energy, Inc. to buy a total 90 million gallons of biodiesel over the next three years from ICB’s Wilmington, NC biodiesel plant… a refinery hasn’t even started producing yet!

This press release posted on MarketWatch.com has details:

In the Letter of Intent, Eco-Energy, Inc. states that it will purchase 30 Million gallons of biodiesel per year, for a length of three years from the first day of actual biodiesel production. Additionally, Eco-Energy, Inc. will be responsible for all logistics and transportation.

“This relationship with Eco-Energy, Inc. provides us with an additional certainty that our revenues are only limited by how fast we can get our production plant operational,” stated Jim Cooper, CEO of International Coastal Biofuels, Inc.

Now, I might be a little off when I say it will be all of ICB’s production for the next three years. The company is in negotiations to build a second refinery in South Carolina. Pretty good idea to look at expansion when you’ve already got your projected production sold.

Biodiesel

Ethanol Decision is a Win for Consumers

Cindy Zimmerman

Ethanol producers say the EPA decision to maintain the current level of biofuels blending required under the Renewable Fuels Standard will benefit consumers.

EPICThe Ethanol Promotion and Information Council (EPIC) says the decision ensures consumers will continue to benefit from an expanding supply of domestically produced renewable fuel, which is helping to lower gas prices.

“Today’s decision is an important win for American consumers,” said EPIC Executive Director Toni Nuernberg. “People are justifiably focused on pocketbook concerns in today’s economy. Ethanol is one of the few things helping families save money.”

EPIC points out that studies by Merrill Lynch, Iowa State University and others have estimated that ethanol is saving the average family as much as $500 per year at the pump.

EPIC, Ethanol, News

Basis of EPA Decision on Ethanol Waiver

Cindy Zimmerman

The bottom line for the Environmental Protection Agency when it came to making a decision on the request for a partial waiver of the Renewable Fuels Standard was the impact within the next year.

EPAAccording to EPA, “implementation of the RFS would have no significant impact in the relevant time frame (the 2008/2009 corn season), and the most likely result is that a waiver would have no impact on ethanol production volumes in the relevant time frame, and therefore no impact on corn, food, or fuel prices.”

EPA also determined that the evidence also indicates that even if the RFS mandate were to have an impact on the economy during the 2008/2009 corn marketing year, it would not be of a nature or magnitude that could be characterized as severe. Even in the modeled scenarios where a waiver of the RFS mandate might reduce the production of ethanol, the resulting decrease in corn prices is anticipated to be small (on average $0.30 per bushel of corn), and there would be an accompanying small increase in the price of fuel (on average $0.01 per gallon in fuel costs). The average increase in corn prices in all modeled scenarios, including scenarios where the RFS mandate would and would not have an impact, was $0.07 per bushel of corn. Such levels of potential impacts from the RFS program do not satisfy the high threshold of harm to the economy to be considered severe.

Read EPA’s decision justification here.

corn, Ethanol, Food prices, Government, News

Ethanol Industry Pleased with EPA Decision

Cindy Zimmerman

Reaction from the ethanol industry started coming out just minutes after the Environmental Protection Agency announced it would deny a request to cut the Renewable Fuels Standard.

RFARenewable Fuels Association President Bob Dinneen calls the decision “an important victory for all Americans.”

“Today’s EPA decision recognizes the importance of biofuels to the American economy,” Dinneen said in a statement. “The Renewable Fuels Standard is critical to our nation’s goals of reducing oil imports, addressing environmental challenges and developing the promising next generation of biofuels from cellulosic feedstocks.”

POETPOET, the world’s largest ethanol producer, praised the EPA ruling.

“For months, special interest groups seeking to defend the energy status quo have attempted to lay all of the blame for rising food costs at the feet of the ethanol industry,” said Rob Skjonsberg, Vice President of Government Affairs for POET. “But the fact of the matter is that virtually every independent study has shown that ethanol’s impact on food prices is minimal while its impact on lowering gas prices is substantial.”

Iowa Renewable Fuels Association executive director Monte Shaw noted the recent 20 percent drop in the price of corn and said “right now ethanol producers are making more ethanol than ever, and yet the price of corn has gone down. It should be obvious that the argument that ethanol and biofuels causes higher prices has little merit.”

NBBThe biodiesel industry is also pleased with the ruling. National Biodiesel Board CEO Joe Jobe said, “It is important to note that all renewable fuels qualify for the current RFS. In fact, if the RFS is waived or cut in half in 2008, then the growth of all biofuels, including “advanced biofuels” such as biodiesel, would be severely hindered.”

Biodiesel, Ethanol, Government, News, RFA