Transitioning To A Bio Economy

Chuck Zimmerman

Steve HalbrookNext week I’ll be attending Farm Foundation’s program titled, “Transition to a Bio Economy: Risk, Infrastructure and Industry Evolution.” They’ve been advertising here on Domestic Fuel and if you haven’t made your reservation then there is certainly still time.

You may not be familiar with Farm Foundation or this series of programs they’ve been hosting on the subject of a Bio Economy. To learn more myself, I spoke with Foundation Vice President, Steve Halbrook, pictured. He says that Farm Foundation is a non profit organization that works in agricultural and rural policy issues. They bring together industry, government and academic leaders to focus on the challenges facing our food system and rural communities.

Steve says this event will have a special focus on biofuels since it affects all facets of ag and rural areas, especially ethanol in the mid west. He says that leaders from several government agencies, including USDA, approached them hoping that the Foundation could help them better understand this issue.

You can listen to my interview with Steve here: [audio:http://www.zimmcomm.biz/farm-foundation/steve-halbrook.mp3]

Audio, Ethanol, Farm Foundation, Government, News

ICM to Produce Food and Fuel

Cindy Zimmerman

The next generation of ethanol plants will be producing both food and fuel.

ICMICM, Inc. has announced that ethanol biorefineries investing in the company’s newest technology by the end of this year will be capable of commercially producing both food and fuel in 2010. The announcement was made during ICM’s customer meeting at the annual Fuel Ethanol Workshop (FEW) in Nashville, Tenn.

“We are talking about the ‘ethanol biorefinery of the future’…and very near future at that,” said Dave Vander Griend, founder, president and CEO. “Fifty years ago, the U.S. fed the world. We will be able to do that again with a food supply brought about by the evolution of ethanol production.”

ICM is a partner in LifeLine Foods of St. Joseph, Missouri which is already producing both food and fuel using the company’s technology.

corn, Ethanol, FEW, News

FEW Welcome

Cindy Zimmerman

FEW 08 welcomeThe 2008 International Fuel Ethanol Workshop is getting started in Nashville and is expected to attract some 4,000 visitors from around the globe.

This is the 24th year for the event that started out with just a few dozen dreamers. The FEW this year will offer 23 technical workshops on topics such as cellulosic ethanol, non-food feedstocks, water utilization and conservation, non-fossil fuel power, lifecycle analysis, training the biofuels workforce of
tomorrow; and more traditional topics including improving production efficiencies, plant management, and plant safety.

FEW 08 welcomeOpening speakers on Tuesday feature Dr. Robert Zubrin, author of the book “Energy Victory: Winning the War on Terror by Breaking Free of Oil.” He will deliver the keynote address during the general session and offer a plan of how ethanol could help safeguard homeland security and provide solutions for global warming and developing nations.

Renewable Fuels Association president and CEO Bob Dinneen will give an industry update during the general session and provide hope to those who look to move the industry forward.

Also making an appearance on Tuesday will be Bobby Rahal, Indy car champion and co-owner of the Rahal-Letterman racing team that features the Number 17 Team Ethanol car – a model of which is on display outside the convention center.

Cellulosic, conferences, EPIC, Ethanol, FEW, News, RFA

Study Finds Oil Impacts Prices More Than Policy

Cindy Zimmerman

Government biofuel policies affect fuel and farm commodity prices, but the price of a barrel of oil can have even larger effects.

FAPRIThat is the conclusion of a report by the University of Missouri Food and Agricultural Policy Research Institute (FAPRI). The study researched biofuel scenarios based on 500 random draws of possible weather, production and other market influences. The most extreme scenario allows current tax credits and tariffs to expire as scheduled and would not enforce the energy bill mandates. In this scenario, without most current biofuel policies, corn prices would decline 14 percent on average compared to a scenario that continues current support measures.

“The impact of biofuel policies depends not just on the policy but very much on the market context,” said Pat Westhoff, FAPRI co-director.

“Mandates have little market impact when high petroleum prices contribute to high biofuel prices and production levels.” Westhoff said. “On the other hand, mandates can be important when petroleum prices are low or crop supplies are reduced.”

The report, “Biofuels: Impact of Selected Farm Bill Provisions and other Biofuel Policy Options,” was published online June 12.

corn, Ethanol, News, Research

Sun Powering Rice Milling Operation

John Davis

A California rice miller will dedicate the largest rice plant solar installation in the U.S. on Wednesday, June 18th.

Far West Rice will unveil its $6.5 million, one-million megawatt, Mitsubishi Solar System, that the company is using to power its milling operation at Nelson (south of Chico), California.

The solar array will meet about 70-80 percent of the total energy costs of the rice plant, using more than 5,500 Mitsubishi Electric solar panels installed by Pacific Power Management, LLC. When the plant is not operating, the solar system will feed electrical power back into the electrical grid.

Greg Johnson, Executive Vice President of Far West Rice, Inc. said “Going solar made sense from a business standpoint. Our electricity bill will be lower and the installation also means that our communities can breathe easier and enjoy California’s beauty with less air pollution. We are excited to be involved in this technology and know that it will exceed our expectations.”

Mark Frederick, managing partner of Pacific Power Management, commenting on Far West’s installation, said: “Far West Rice showed great initiative in going solar. They have a system now that sets the green standard in the rice industry and gives them a competitive advantage that will only grow as electricity prices increase.”

Solar

Ethanol Credited for Lowest National Gas Prices

Cindy Zimmerman

Nationwide, the average cost of gas has hit a record $4 a gallon, which means some areas, like California, the average price has topped $4.50 a gallon.

MO Gas PricesBut in Missouri, the average price of $3.82 a gallon is the lowest in the nation – in part because of ethanol. The state implemented a ten percent ethanol mandate this year, which a recent economic study said amounted to saving consumers almost 10 cents a gallon at the pump.

And the mandate will stay in place statewide, despite a recent request for a waiver by Kansas City. Missouri Governor Matt Blunt denied that waiver on Friday.

“We have reviewed the request for a waiver of the E-10 standard in the Kansas City area,” Gov. Blunt said. “After thorough consideration of all aspects of this waiver request, I have decided it is in the best interest of the state to not issue the waiver.”

Missouri CornThat was good news for Missouri corn growers, who strongly supported the state renewable fuels standard.

“With gasoline prices already soaring, removing ethanol in Kansas City would send prices even higher,” said Missouri Corn Growers Association president Mike Geske. “By denying the waiver, Gov. Blunt is preventing consumers from experiencing additional pain at the pump.”

corn, Ethanol, Government, News

US-EU Biodiesel War About to Heat Up

John Davis

The fight between American and European biodiesel makers is heating up. European biodiesel producers are urging the European Union to hit U.S. biodiesel with punitive fines as the EU is set to open anti-dumping and anti-subsidy investigations into imports of the green fuel from the United States.

This story from AFP says this comes after the European Commission started looking into complaints that the US was hurting Europe’s biodiesel industry:

The European Biodiesel Board called for the investigation in April, complaining that the European market was being flooded with US exports of a 99-percent biodiesel blend, which can receive a subsidy of 300 dollars (192 euros) per tonne.

On top of the US aid, exports of the so-called B99 blend are also eligible for a subsidy in Europe as well.

The lobby said the subsidies were squeezing European producers’ profit margins, putting most of them out of business and leaving capacity idle.

But American biodiesel producers aren’t taking this lying down. Manning Feraci, the National Biodiesel Board’s Vice President of Federal Affairs, has responded:

“The allegations of harm leveled by the European biodiesel industry in these trade complaints are baseless. It is disingenuous and hypocritical that several of the European biodiesel companies that joined in the complaints are the very entities actively involved in the trade of U.S. biodiesel.

“The European biodiesel industry is not being harmed by U.S. competition. High feedstock costs, changes to EU member policies – and in some cases – poor business practices are the true issues facing European biodiesel producers. It is unfortunate that the European Biodiesel Board (EBB) has found it politically expedient to blame the U.S. biodiesel industry instead of focusing its efforts on the true challenges facing its membership.

Feraci goes on to characterize the European reaction as a “protectionist ploy.”

Biodiesel, International

Nation’s First Intrastate Wind Project Public Offering

John Davis

Minnesota-based High Country Energy, along with its managing company National Wind, has made the nation’s first intrastate public offering of a wind project’s securities… a move that is expected to help local, rural communities invest in the green energy source.

This company press release says High Country Energy is using Delphi Financial Corp., an investment banking firm specializing in raising capital for community-based renewable energy projects, as the placement agent for the offering. It’s expected to help High Country Energy, to build more than 300 megawatts of community-owned wind farms in Dodge, Olmsted and Mower Counties, Minnesota:

“This offering can be made available to interested investors throughout the state of Minnesota, however it was very important to all of us in High Country to ensure that landowners within the project footprint have the first opportunity to invest,” says Barry Rogne, Chairman of the High Country Energy board of advisors. “This offering is consistent with our company’s goals of sharing ownership with a large cross section of our community.”

Investing in renewable energy capacity is becoming a worldwide trend, according to the World Watch Institute. In 2007, the Institute reported 36 billion dollars of worldwide investment in wind energy alone.

“An intrastate public offering is a way the local, rural communities can become a part of this trend. In comparison to a private placement offering, which is typical in the renewable energy industry, this intrastate public offering will allow us to offer investment opportunities to a greater number of people, as long as they are residents of Minnesota,” says Ryan Pelstring, Vice President of Capital Markets, Delphi Financial Corp.

Wind

Ethanol is “Ugly Baby”

Cindy Zimmerman

Ethanol is “an ugly baby but it’s ours and it will move cars,” according to billionaire oilman T. Boone Pickens.

T. Boone PickensSpeaking at the Oil and Gas Investor’s Energy Capital Forum in Houston Tuesday, Boone emphasized that he prefers the less-than-perfect fuel over imported oil because there is “no question” that America must embrace alternate energy sources to alleviate the $700-billion transfer of wealth out of the country to oil imports.

Pickens says the United States is having an energy crisis and that should be the top campaign issue in the presidential election. “Energy is not a debate; it’s a crisis for this country,” Pickens said. “We cannot continue down the path were on. It’s that desperate.”

Pickens said he plans to elevate the issue into this year’s presidential election campaign through a series of television ads talking about energy.

He noted that the country currently spends $700 billion annually to import oil and that could increase to $10 trillion annually within the next decade unless something changes.

Energy, Ethanol, News

DOE to Test Ford Escape Hybrid FFV

FordFord Motor Company is providing an Escape Plug-in Hybrid, which can run on gasoline or E85, to the Department of Energy (DOE) as a testing vehicle. As partnership with Southern California Edison and the Electric Power Research Institute in California, DOE will study the real world activity of this new science.

“Plug-in hybrid technology holds great promise to reduce the nation’s dependence on petroleum and reduce CO² emissions related to climate change, both significant issues for America,” said Mark Fields, President of the Americas, Ford Motor Company. “As a leader in both hybrid and flexible fuel technology, Ford is well positioned to bring the two together in a plug-in vehicle.”

Ford notes that the FFV Hybrid Escape will be able to reach 50 miles per gallon on the highway with E85 and 88 miles per gallon in the city. This should omit about 60 percent less carbon dioxide than when using unleaded gasoline.

“We are moving from an independent set of solutions to an integrated future. With plug-in hybrids, the automotive and utility industries are connected by a common fuel with the potential to significantly change our transportation and energy future,” said Nancy Gioia, director of Ford’s Sustainable Mobility Technologies and Hybrid Vehicle Programs.

The vehicle is one of 20 that is in this type of testing for Ford.

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