Missouri Ready for E-10 Requirement

Cindy Zimmerman

MO CornMissouri is prepared for a law requiring a ten percent ethanol blend to kick in next week.

According to an article in the Kansas City Star, most of the gasoline sold in Missouri already being blended with ethanol.

The law “sent a tremendous signal,” said Gary Marshall, chief executive officer of the Missouri Corn Growers Association, and E-10 now meets about 90 percent of the demand for gasoline in the state.

F. J. Cronenwett, director of wholesale fuels for Robson Oil, which supplies several area gas stations, said that most fuel retailers in Missouri and Kansas were using E-10 because of the lower price and were even using an ethanol blend when they buy premium fuel, which won’t be required under the Missouri law.

“That’s really the way the market works right now,” he said.

Missouri currently has five ethanol plants on-line with a total annual production of 225 million gallons and by the end of 2008 the state should have 275 million gallons of production capacity, which is enough to meet the state’s demand for E-10.

Check out a map of Missouri’s ethanol production from the MCGA here.

Ethanol, Legislation, News

Tobias Out as Imperium Chief

John Davis

martintobias.jpgIn a bit of a surprise over the weekend (sorry, just now catching up from the Christmas holiday), Martin Tobias is out as chairman and CEO of Imperium Renewables… replaced by company co-founder John Plaza as CEO and Nancy Floyd as chairman.

This story on C|Net News Green Tech Blog says tight times for the biodiesel industry might have prompted the change:

imperium-logo.gifTobias has been the spokesman and public figure for Imperium since its founding. The company has raised more than $200 million dollars and earlier this year christened a 100-million gallon refinery in Washington state. It has plans to build similar sized facilities in Hawaii, Argentina and elsewhere.

The ouster of Tobias is something of a surprise. He was a frequent fixture on the green-tech conference circuit and presided over the unveiling of the Washington facility in August. The company sent out a press release on the departure of Tobias at 4:30 p.m. PST on the Friday before the Christmas break. Talk about getting maximum exposure for your news.

Biodiesel, however, is a tough business. The fuel, made from vegetable or meat oils, actually costs more than regular diesel. The federal government gives refiners a $1 to 50 cent per gallon subsidy. Imperium had filed preliminary papers for an IPO, but recent rumors make it sound like the company had to postpone the proposed date for the IPO. No confirmation on that.

The article goes on to point out that some other companies have had to swap out management lately as green fuel companies try to find the right mix of someone from the energy sector who is media-tech savvy. What makes this transition so puzzling is that Tobias seemed to have both.

Biodiesel

Tennessee DOT Giving Grants to Promote Biofuels

John Davis

biotenn.jpgTennessee’s Department of Transportation plans to hand out $1 million in grants to help promote biodiesel and ethanol at gas pumps along the interstates in Tennessee.

This story in the Chattanooga (TN) Times Free Press says one of the first Green Island Corridor grants is going to a station in Cleveland in the southeast part of the state:

Tom Robertson, owner of Fuel & Mart USA No. 4 on Lee Highway, said the store will convert a gasoline tank into one suitable for biodiesel within weeks.

“I would say we’ll begin selling it within a couple of months,” Mr. Robertson said.

The Tennessee Department of Transportation awarded $12,024 to Fuel & Mart USA No. 4 in November, state officials said.

TDOT officials said the state set aside about $1 million to help establish a network of biodiesel and ethanol stations along Tennessee interstates.

TDOT spokeswoman Julie Oaks said the idea is to have stations no more than 100 miles apart, giving travelers a chance to refuel using alternatives.

She said the state has already approved grants for 64 to 66 pumps and could fund up to 22 more. No more state or federal dollars have been set aside, she said.

“We are hoping to receive additional state dollars,” she said.

Officials believe the grants will make it easier for the small businessmen who run the gas stations to make the infrastructure changes needed. Some estimates say the cost of converting a tank can be $16,000 to $18,000.

Biodiesel, Ethanol, Government, News

Cheaper Biomass Power in Alabama

John Davis

alpower.gifMore power customers in Alabama soon could be enjoying lower power bills, thanks, in part, to a decision by that state’s public service commission to approve a renewable energy rate decrease.

alpsc.jpgThis story in Birmingham (AL) Press-Register says the decrease will go to customers who support what has been an obscure program to support an Alabama Power Company coal/biomass project in Gadsden with hopes of drawing more attention and more customers to it:

“Hopefully, it will help us rely less on fossil fuels,” said Susan Parker, one of three commission members. “That in turn would lead to better national parker.jpgsecurity, and make us not as dependent on natural gas and other (resources), and helps the environment improve.”

The project in Gadsden mixes coal with a small percentage of switchgrass, usually 5 to 7 percent.

The program allows residential customers to pay for the production of 100 kilowatt-hours of renewable energy each month for $6 — the fee a surcharge on top of the customer’s regular bill. Under changes approved by the PSC on Dec. 4, residential customers will have the option of buying in at $2.25 per 50 kilowatt-hours, starting Jan. 1. Commercial and industrial customers will be included in the program for the first time, and can pay for 100 kwh blocks for $4.50.

The problem has been a lack of knowledge about the program:

“Only one out of 48 knew about program,” said David Bransby, a professor of agronomy and soils at Auburn University and an expert on biopower who conducted focus groups on the program in 2005. “We asked about the advertising flyers. They said ‘We don’t read those. They go into the trash can.'”

Officials believe customers will be less inclined to throw out the idea once they know how much it could save them on their energy bills.

Energy, Miscellaneous

The Year of Ethanol

John Davis

e-podcastThe ethanol industry has come a long way this year and a large part of the renewable fuel’s success is unquestioningly a result of the concentrated efforts of the Ethanol Promotion and Information Council. Looks like all that hard work paid off. Agrimarketing magazine named ethanol the Agrimarketing Product of the Year. EPIC’s Reece Nanfito says the late accomplishments of the ethanol industry are just the beginning.

This edition features comments from Reece Nanfito, the Director of Marketing for EPIC.

The “Fill up, Feel Good” podcast is available to download by subscription (see our sidebar link) or you can listen to it by clicking here (5:30 MP3 File):
[audio:http://www.podtrac.com/pts/redirect.mp3?http://www.zimmcomm.biz/epic/epic-podcast-12-17-07.mp3]

The Fill Up, Feel Good theme music is “Tribute to Joe Satriani” by Alan Renkl, thanks to the Podsafe Music Network.

“Fill up, Feel Good” is sponsored by the Ethanol Promotion and Information Council.

Audio, Energy, EPIC, Ethanol, Fill Up Feel Good

Measuring Up the Candidates

John Davis

repubguide.jpgSo you say you haven’t heard enough from the 16 candidates running for President? There’s just not been enough media coverage for your tastes? OK, so maybe you think you’ve heard enough about the crowd (especially if you’re living in Iowa or New Hampshire), but you do need some information to make an informed decision, right? Especially when it comes to how they stack up on alternative energy issues.

Well, The Daily Green web site is offering a voter’s guide to how green all the candidates are (don’t be fooled by the graphic, there’s plenty of links to see how the Democrats are on alternative fuel issues). Here’s an example of what you would see on the page. I put these two candidates side by side. Normally, it’s just one at a time. Do your own comparing:
votersguide.jpg

As I said, there are similar links for each of the candidates, Republicans and Democrats, at the Daily Green’s election guide web sites. Check ’em out and make the decision for yourself. Maybe the sooner you make up your mind, the sooner they’ll leave the poor folks in Iowa and New Hampshire alone!

Biodiesel, Ethanol, Government, News

VeraSun Gets Two For One

John Davis

VeraSun EnergyVeraSun Energy has broken ground on a new Oil Extraction Facility in Aurora, South Dakota. The new facility will use technology that enables the large ethanol producer to generate two renewable fuels from one kernel of corn.

VeraSun Energy Corporation, one of the nation’s largest ethanol producers, today announced that it began work on an oil extraction facility at its 120 million-gallon-per-year (MMGY) ethanol biorefinery located near Aurora, S.D. The facility will utilize a technology designed to extract corn oil from distillers grains, a co-product of the ethanol production process.

Production is targeted to begin in the fourth quarter of 2008 and the process is expected to yield 7-8 million gallons of corn oil annually from 390,000 tons of distillers grains. The corn oil will be made available for sale to the biodiesel market. One gallon of corn oil yields approximately one gallon of biodiesel, increasing the production of renewable fuels without creating additional feedstock demand.

“The production of two biofuels from one kernel of corn makes economic and environmental sense,” said Pete Atkins, VeraSun vice president, corporate development. “This is a great example of the innovation that will continue to develop as the industry matures. We are pleased to contribute to the commercialization of this technology.”

VeraSun Energy first introduced the concept behind this new technology in 2006. The company plans to get the technology up and running at its Fort Dodge and Charles City, Iowa, biorefineries by the end of 2009.

Agribusiness, Biodiesel, Energy, Facilities, News, Production

Biodiesel Plants Employing Modular Designs

John Davis

In a world of tight margins, biodiesel producers are looking for an edge that will help them maintain their profitability. That edge might come in the form of modular designs for their refineries.

This article from Biodiesel Magazine says a compact modular plant design using proven techniques can improve biodiesel plant economics and help the construction or expansion process, while saving the builder and/or operator moneY:

Biodiesel plants represent an ideal opportunity to employ modular designs. Their scale lends itself well to modularization of all or significant portions of the production process. Modular techniques can positively impact equipment selection and configuration, producing a compact plant layout, and improving product quality and profitability.

Modular designs typically have a smaller footprint than field-erected plants. Storage tanks are usually free-standing, but the vast majority of the process equipment can be modularized and strategically located, lowering capital costs and improving plant efficiency. A well-implemented modular design takes advantage of a combination of horizontal and vertical layouts to locate equipment in an optimum spatial relationship. An experienced modular system designer can minimize space requirements, reduce piping runs and, in some cases, eliminate pumping requirements by allowing for gravitational flow.

The article goes on to say that a modular design can help a refiner optimize key process steps, assist in integrating quality assurance measures, and offers the ability to incorporate heat integration methodology.

Biodiesel

Mexico Turns Sights Toward Biodiesel

John Davis

Mexico, a big producer of petroleum, could be getting into the biodiesel business.

This story from Reuters says a new biofuel law that kicks in next year will encourage the production of biodiesel from crops like beets, yucca root, and sorghum, possibly solving some of the food-versus-fuel debate Mexico has been going through:

“Mexico could develop biodiesel faster than ethanol,” said Agriculture Minister Alberto Cardenas at a news conference.

“We have to seek out other sources for biofuel to differentiate ourselves from Brazil and the U.S.,” said Cardenas.

The law, passed last week, offers unspecified support to farmers that grow crops for the production of any renewable fuel.

Cardenas said a biodiesel industry would help the country’s poorest farmers, and that none of the crops Mexico currently grows for food would be replaced with biofuel plants.

No estimate of how much biodiesel Mexico could produce.

Biodiesel, International

Ameren Gets Into Wind Power

John Davis

ameren.jpgSt. Louis-based AmerenUE, which serves 2.4 million electric customers and nearly one million natural gas customers in a 64,000 square mile area of Missouri and Illinois, has announced its first venture into wind energy.

horizonwindenergy.jpgThis Ameren press release says the Midwest power giant will buy 100 megawatts (MW) of wind power from Horizon Wind Energy’s Rail Splitter Wind Farm located near Delavan, Illinois, honoring Ameren’s promise to add 100 megawatts of renewable capacity to serve its Missouri customers by 2010:

“This is an exciting day for AmerenUE,” says AmerenUE President and CEO Tom Voss. “It is our first venture into wind development. We will be looking for additional opportunities as we increase the amount of renewable resources in our generating portfolio. This is a significant first step toward further diversifying our fuel mix and demonstrating our commitment to environmental stewardship.”

(Thursday’s) announcement is a culmination of a thorough, year-long review of proposals UE sought earlier this year. AmerenUE intends to sign a 20-year purchased power agreement (PPA) for the wind farm’s output. The PPA has not yet been signed, and terms are still subject to negotiation. Once the agreement is signed, construction is expected to begin in the spring of 2008, with the project completed by the end of 2008. Sixty seven turbines will be located on the site, with each turbine capable of generating 1.5 megawatts of electricity.

Horizon is owned by Portuguese utility Energias de Portugal, S.A. (EDP), which produces more than 1,700 mgawatts of renewable power In Spain, Portugal, and France with another 3,000 megawatts worldwide due to come on line by the end of next year.

Wind