Orion Ethanol Diversifies

Cindy Zimmerman

Orion Ethanol of Kansas has acquired a corn fructose wet milling facility located in Texas from Dimmitt Ethanol.

Orion EthanolOrion plans to convert the facility into a fully integrated renewable fuels campus in three phases over 3 years. The first phase will convert the corn fructose wet milling facility into a 60 million gallon per year ethanol plant and 10 million gallon per year edible oil extraction facility. Phases two and three will consist of adding a 10 million gallon per year cellulose-to-ethanol process, a 12 million gallon per year biodiesel plant, a 25,000 ton per year yeast plant, and a 60-75 Megawatt wind and biomethane based electrical generation facility. The asset purchase brings with it approximately 1,200 surrounding acres and a wind lease agreement.

Orion chairman of the board Patrick Barker says, “Dimmitt Ethanol’s wet milling facility is the ideal platform upon which we plan to develop an integrated renewable fuels campus that will include production of cellulosic ethanol, biodiesel, biomethane, and wind power. This project will help to horizontally diversify Orion across the energy spectrum, building upon Orion Ethanol’s past success acquiring and developing our 55 million gallon per year dry-mill ethanol plant in Pratt, Kansas.”

Biodiesel, Cellulosic, Ethanol, Facilities, News, Wind

GO Ethanol Creates Jobs

Cindy Zimmerman

On Monday, Ohio Governor Ted Strickland toured the nearly complete Greater Ohio Ethanol plant in Lima to promote his jobs creation program.

According to LimaOhio.com, the governor’s “Building Ohio Jobs” proposal includes more than $250 million for investment in advanced energy projects including solar manufacturing, advanced coal technology and biofuels.

Greater Ohio Ethanol“I think this community should feel really good about the effort that has gone into the successful completion of this plant. What I’ve been told is every segment of this community got behind this effort and supported it,” Strickland said. “This is the result of people working together to accomplish something that is good for everyone. It’s going to be good for the farmers, the agriculture community in Ohio will benefit as a result of this plant.”

In January, Strickland helped open the new POET Energy ethanol plant in Leipsic.

“We want to invest an additional $250 million into encouraging developments like this one,” Strickland said. “We’ll invest in renewable fuel sources, advanced technologies and so on so we can become less dependent on sources outside our state and outside the nation to meet our energy needs.”

Ethanol, Facilities, News

Nebraska Biodiesel Plant Gets New Life

John Davis

beatricebiodiesel.jpgA Nebraska biodiesel plant that was under construction up until the middle of February, just weeks short of its completion, looks like it will be completed.

The Beatrice Biodiesel Plant will finally be finished after parent company U.S. Canadian Biofuels secured new financing for the plant, according to this article in the Beatrice Daily Sun:

cummins1.jpgBud Cummins, U.S. Canadian Biofuels CEO, said Monday a recent agreement with Home Federal Savings Bank, which issued the construction loan for Beatrice Biodiesel, will allow Beatrice Biodiesel to liquidate certain collateral currently securing the loan to provide a cash pool to complete the core construction at the plant.

“This is good news for our creditors,” Cummins said. “It is generally believed that most buyers are going to want to see the construction completed before they commit to buying the plant.”

The article goes on to say that U.S. Canadian Biofuels will sell the plant after it is finished to help satisfy liens against it… however, it doesn’t mention how soon it could be actually cranking out biodiesel.

Biodiesel

Illinois Biodiesel Plant Looking at New Investors

John Davis

bunge.gifThere could be some new investors taking over the biodiesel operations of an Illinois soybean miller.

This story in the St. Louis Post-Dispatch says Bunge’s Danville, Illinois operation, just recently finished, will have new investors in the biodiesel production plant:

Deb Seidel, director of communications for Bunge North America, based in Maryland Heights, said an asset purchase agreement is being worked out between Biofuels Company of America LLC and Blackhawk Biofuels, a group of about 600 investors, including farmers and businessmen.

If the deal closes, Seidel said, Bunge would lease the property where the biodiesel plant stands to Blackhawk and would supply feedstock, such as soybean oil, to the operation. Soybean oil is a byproduct of Bunge’s milling operation and can be used to make biodiesel, a non-petroleum-based diesel fuel made from vegetable oils and animal fats. It can be used alone or as a blend in unmodified diesel engines.

Biodiesel

Greenest Bands Running on Biodiesel

John Davis

As the summer rock concert series are about to start across the country, Billboard Magazine is releasing its top 10 list of the greenest artists.

Some of the more notables include major acts, such as Jack Johnson, Willie Nelson, the Dave Matthews Band, and Pearl Jam.

According to Billboard’s article (advance copy posted on the Seattle Post-Intelligencer’s blog), at the top of the list is Johnson who has a solar-powered recording studio:

In addition, the tour’s trucks and coaches will run on biodiesel, while catering will emphasize locally grown and organic foods.

2. Willie Nelson:

bio_willie_pic1.JPGWillie Nelson’s BioWillie biodiesel fuel, which is already sold in Texas, Oklahoma, Mississippi, Louisiana, California and Tennessee, will add a key location when Willie’s Place at Carl’s Corner, Texas, opens this summer. The truck stop, built on the site of the first outlet to carry BioWillie, is located just off busy truck route I-35, which runs from the Mexican to the Canadian border. Billed as the biggest green truck stop in the United States, the facility will include 13 islands and 26 pumps, and all fuel sold there will have some percentage of biofuel, ranging from 5% to 85%.

Other bands are using biodiesel-powered buses and generators, as well as trying to make their shows as ecologically-friendly as possible.

So if you’re wondering who to go see on tour this year, keep the green artists in mind.

Biodiesel, Solar

Ethanol Maker Eyes Biodiesel Biz

John Davis

goldenbest.jpgEthanol producer Golden Grain Energy of Mason City, Iowa is looking at getting into the biodiesel business by the end of the year.

This story in the Mason City Globe Gazette says company president Walt Wendland announced his company, which has been producing ethanol in the northern Iowa community since December of 2004, will work with BEST BioDiesel Inc. of Madison, Wisconsin to put together a “first-of-its kind” partnership using BEST’s technology to take the corn oil from Golden Grain’s ethanol process and make it into biodiesel:

The partnership, called Corn Oil Bio-Solutions LLC, would employ 11 people in Mason City at an average pay of about $18 an hour.

Tony Janowiec, vice president of BEST BioDiesel, described the arrangement to Golden Grain employees in a recent company newsletter.

He said, “BEST’s vision is to integrate technologies within existing ethanol plants to create a real competitive advantage for our ethanol partners.

“Our proprietary ethanol-integrated biodiesel process is the first of many technologies that we plan to bring to our partnership with Golden Grain.

“It’s maximizing existing resources and getting more value out of the same acre of land and same kernel of corn.”

Last week, the Mason City Council gave the plant a $125,000 tax abatement for 10 years. In addition, Corn Oil Bi-Solutions is trying to get some additional financial help from the Iowa Department of Economic Development.

Biodiesel, Ethanol, News

Update From NEVC

Chuck Zimmerman

Phil LampertAt the recent Ethanol 2008: Emerging Issues Forum I spoke with Phil Lampert, Executive Director, National Ethanol Vehicle Coalition. Phil was a panelist on the subject of ethanol marketing.

One of the points he made in his presentation had to do with pushing for more flex fuel vehicles on the road. In an interview I did with him afterward he says that NEVC isn’t trying to have every vehicle in America run on E85 but get more FFV’s on the road since they can run on any blend up to E85, reducing the challenge of having different blend levels available.

Phil says that NEVC will continue to focus on high level blends of ethanol since that’s what the organization does better than anyone. He’s hoping the industry will embrace them and what they’re trying to accomplish. He encourages people to go to their website to learn more.

I also want to thank Phil for his very nice comments about Domestic Fuel!

You can listen to my interview with Phil here: [audio:http://www.zimmcomm.biz/ethanol/ne-ethanol-08-lampert.mp3]

Audio, conferences, E85

Ethanol Reducing Gas Prices

Cindy Zimmerman

The availability of ethanol is currently reducing the cost of gasoline by between 6 and 9 cents per gallon, according to data collected by the American Coalition for Ethanol.

“The growing availability of ethanol across the United States is reducing the cost of gasoline by up to nine cents a gallon,” said Brian Jennings, Executive Vice President of ACE. “While gas prices are still causing pain at the pump, ethanol is alleviating some of the pressure of hundred-dollar oil. Without ethanol, gas prices would likely be even higher.”

ACEAccording to recent price reports by Axxis Petroleum and the Oil Price Information Service, ethanol for blending is selling for as much as 10 to 35 cents lower than gasoline, depending on the market. Factoring in the blender’s tax credit, this means that the wholesale cost of E10 is between 6 and 9 cents less per gallon than gasoline.

“The price of gasoline isn’t rising as quickly as the price of diesel, partly due to the fact that there’s an alternative to gasoline – ethanol – that’s adding more than 2 million gallons a day to our nation’s fuel supply,” noted Ron Lamberty, ACE’s Vice President / Market Development.

According to today’s AAA fuel price report, the national average price of diesel reached $4.029 a gallon, while the national average price of gasoline remains at $3.26 for regular and $3.587 for premium.

ACE, Ethanol, News

NBB Offers Vehicle for Updates

John Davis

bio_ab.gifLots of information came out of last month’s National Biodiesel Conference and Expo in Orlando, Florida, and trust me, we did all we could to make sure you knew about the events through the conference blog. The National Biodiesel Board wants to ensure you stay up-to-date with all of the issues from that event, as well as the biodiesel industry as well.

That’s why the group is offering free membership to its Biodiesel Alliance and Biodiesel Backer programs:

The Alliance is a diverse coalition of almost than 2,400 organizations, agencies and businesses from across the nation who find common ground in their support for biodiesel fuel. Founded and managed by the National Biodiesel Board, Biodiesel Alliance members receive timely updates on important happenings in the biodiesel industry.

The Biodiesel Backers program is like the Alliance, except instead of organizations and businesses, its members are individuals who support biodiesel. There are currently more than 7,300 Biodiesel Backers.

No policy positions are taken by the Biodiesel Alliance or Backers and there is no charge for membership. Joining is simply a great way to support information sharing and opportunities to help advance the use biodiesel.

HERE’S WHAT’S IN IT FOR YOU AND YOUR ORGANIZATION

In addition to the Biodiesel Bulletin, members receive concise alerts containing new and timely information on biodiesel developments that may be of interest to you, your employees and/or your customers. For example:

* Remain abreast of key industry issues that were discussed the National Biodiesel conference including: sustainability; feedstock development; fuel quality and more.
* Get news about local biodiesel-related events happening in your community;
* Receive important updates like the December, 2007 “Biodiesel Beats the Cold” alert and news release with important information about how to successfully use biodiesel blends year-round in the coldest climates;
* Or the February, 2008 alert and news release about NBB’s Sustainability Task Force.
* Get the latest OEM biodiesel announcements;
* And much more!

If you’re interested, just click here.

Biodiesel

Study Finds Biodiesel Safe for Underground Tanks

John Davis

steeltankinst.JPGA new study finds that biodiesel is safe for underground steel tanks.

The study, conducted by the Steel Tank Institute, says typical low carbon steel used for underground storage tanks hold up well against corrosion to the green fuel, according to this story in Wisconsin Ag Connection:

According to Wayne Geyer of the Steel Tank Institute, the low carbon steel test samples exposed to biodiesel and biodiesel blends had excellent resistance to corrosion. “In most cases, the amount of surface rusting was slightly higher in 100 percent Ultra Low Sulfur Diesel than in biodiesel or biodiesel blends,” said Geyer. Corrosion rates for biodiesel and biodiesel blends were so low that it could not be measured.

The findings of the biodiesel and steel compatibility study, which was co-sponsored by the National Oilheat Research Alliance (NORA) and the National Biodiesel Board, were consistent with years of in-field use.

“In nearly a decade of experience covering hundreds of millions of gallons of biodiesel being used, we have not experienced any problems with the compatibility of biodiesel blends in underground storage tanks,” said Don Scott a technical engineer with NBB. “Biodiesel is non-toxic and biodegradable, and we are committed to promoting and encouraging environmentally safe storage and handling procedures.”

The results were announced yesterday (March 23rd) at 20th Annual National Tanks Conference and Expo in Atlanta, GA. In addition, makers of fiberglass tanks gave biodiesel the thumbs up for their tanks.

Biodiesel