Global Biofuels Policy Effects

Cindy Zimmerman

World Ag ExpoBiofuels from an international perspective was on the agenda at the World Ag Expo in California this week. International seminars on Tuesday included “The World of Biofuels” and “The California-Brazil Connection: Ethanol, Biodiesel, Electricity and Beyond.”

PrimafuelOne of the panelists for the second seminar was Rahul Iyer of Primafuel, who spoke on international biofuel policy trends and the many opportunities and challenges facing American farmers. During a telephone press conference from the Expo, Iyer said there has been a dramatic shift globally toward a new type of biofuels policy. “It started back in 2005 in California when California adopted the Global Warming Solutions Act,” said Iyer. “The intention of this regulation was to create a technology-neutral market for low-carbon fuels.” Instead of stipulating percentages for ethanol or biodiesel use, the intent to reduce net carbon content of fuels by ten percent by the year 2020, “we don’t care what technologies you use to do it, you just have to prove to us that you’re doing it.”

Primafuel IyerHe says this that creates a challenge for ethanol and biodiesel producers “to figure out what their environment footprint is, what they’re carbon reduction is, because at the end of the day it determines whether they have a valuable product or not.”

The new Renewable Fuels Standard in the energy bill, what Iyer calls RFS 2, also challenges the industry to create more advanced biofuels that give greater and greater life-cycle carbon reductions emissions.” And at the same time, the European Union is developing it’s own low carbon fuels standard, “which coincidentally, looks almost exactly like California’s,” said Iyer.

Basically, Iyer says that the market place is going to create a premium for low carbon fuels that will cause an increase in efficiency from the farm to the fuel tank with better technology.

Primafuels is “a company focused on finding low-carbon fuels for the international community.”

Listen to part of Iyer’s comments here:
[audio:http://www.zimmcomm.biz/audio/iyer-1.mp3]

Biodiesel, Ethanol, International, News

Ethanol May Help Lower Gas Prices

Cindy Zimmerman

ReutersAccording to a Reuters news service article today, “explosive [ethanol] production is stifling an established driver of oil markets — U.S. gasoline demand — and could lead to lower prices at the pump.”

The article quotes analyst Eric Wittenauer of AG Edwards in St. Louis saying, “‘Ethanol blending could help ease U.S. refining bottlenecks and that could be ultimately reflected in lower prices at the pump.’”

The article continues on to say that as the ethanol delivery system grows, it should provide constant pressure on gasoline demand.

“Gasoline demand … on an underlying basis, is looking pretty weak in terms of growth,” said Adam Robinson, an energy analyst at Lehman Brothers. “And on the other hand, you’ve got ethanol which is substituting for gasoline in the existing pool.”

Equally important as reducing prices at the pump is ethanol’s role in reducing oil and gasoline imports. According to the outlook of Valero, the nation’s largest oil refiner, the “company foresees ethanol growth ‘offsetting gasoline imports to the U.S.’”

Read the whole article here.

Ethanol, News

Survey Contest Reminder

Chuck Zimmerman

This is your friendly reminder and request to take our Domestic Fuel Reader Survey. There’s only about 12 easy questions so it will only take a minute and we’d really appreciate your participation.

We’re going to pick one lucky winner from all the people who participate in our survey for a brand new, personalized 4G iPod Nano.

The Official Rules here (Word doc). I thank you very much for participating!

Miscellaneous

Ethanol Insurance For Farmers From John Deere

Chuck Zimmerman

Dennis DaggettJohn Deere is now offering “ethanol insurance” through their John Deere Risk Protection division. It’s a policy for the grower who wants some extra coverage in case he can’t fulfill a delivery contract to an ethanol plant.

Dennis Daggett, Director of Marketing for John Deere Risk Protection, is on the scene here at the National Farm Machinery Show where I’ve been providing some coverage over on our AgWired site with them as the sponsor. Dennis has been involved in crop insurance for over 30 years. He says Deere offers standard policies like multi-peril and crop hail. But this year they’ve introduced a new ethanol policy.

The first thing a farmer needs to do though is have a multi-peril plan in place. Then they can purchase the extra coverage. Sounds like good timing as we hear about farmers continuing to work at meeting the needs for both fuel and food. The policy is available for this season in states in the grain belt area of the midwest only. You can find out all you want on their website.

You can hear Dennis talk about the new product here: [audio:http://www.zimmcomm.biz/farm-machinery/nfms-08-daggett.mp3]

Audio, Ethanol, Farming, John Deere, News

Montgomery, AL Turns Cooking Oils Into Biodiesel

John Davis

alabamabiodiesel.jpgLast fall, Alabama Agriculture & Industries Commissioner Ron Sparks and Montgomery, Alabama Mayor Bobby Bright announced a partnership that would make used cooking grease into biodiesel to be run in the city’s vehicles. This week, they cut the ribbon on the new Center for Alternative Fuels Biodiesel Production facility.

This Alabama Department of Agriculture and Industries press release has more details:

“This has truly been a special day for the City of Montgomery in opening our newly built biodiesel facility,” I can not think of a better way to help clean up our environment and fuel our vehicles and farm equipment,” said Commissioner Sparks.

“Reducing the amount of used cooking oils that goes into the landfill is good environmental policy,” Mayor Bright said “This process is working in several other cities across the state and we are extremely pleased that we can put this into action for Montgomery’s citizens.”

Commissioner Sparks says the facility will also be used for instructional purposes to encourage the state’s farmers to produce a variety of crops that can be turned into biodiesel, including soybeans and canola. Approximately 110 gallons of B100 will be produced every day. Expected cost of the biodiesel should average between 75 cents and 1.00 dollar per gallon.

Biodiesel

Biodiesel Jet Reaches for the Sky

John Davis

greenflightbiodiesel.JPGThe team that flew a Czech military jet on 100 percent biodiesel last October (see my post from Oct. 16, 2007) has plans to fly a Learjet around the world on the green fuel.

Four months ago, Douglas Rodante with chief pilot Carol Sugars at the controls and the team from Green Flight International flew a 40-year old Czech Aero L-29 Delfin for 30 minutes above the Nevada desert for a half-an-hour. The jet was made for short flights to stop potential defectors. With that in mind, the folks from Green Flight have decided to fly a Bombadier Learject around the world later this year or early in 2009. This story in the Candian Press has more details:

Bill Lear Jr., the president of Learjet before it was purchased by Bombardier in 1990, and Chris Cordova, a former flight engineer on Air Force One, have signed on as consultants.

“It’s a personal goal of mine to implement biofuels into mainstream aviation and mainstream transportation,” Rodante said in an interview from his home in Florida.

“I think it’s necessary that we do this first and foremost for environmental reasons.”

Since the jet flies at high altitude where the temperatures are really cold, Green Flight is planning on using tank heaters and chemicals to keep the fuel liquid and possibly mixing the biodiesel with kerosene. Officials believe emissions could be cut 50 to 80 percent compared to conventional jet fuel.

Biodiesel

Cabinet Officials to Speak at WIREC 08

Cindy Zimmerman

WIREC 08Four cabinet-level officials will be participating in the upcoming Washington International Renewable Energy Conference (WIREC 2008), scheduled to take place March 4-6, 2008, at the Washington Convention Center in Washington, D.C.

U.S. Secretary of Agriculture Ed Schafer, Secretary of the Interior Dirk Kempthorne, Secretary of Energy Samuel Bodman, and Administrator of the Environmental Protection Agency Stephen Johnson are all scheduled to address WIREC 2008, the third global ministerial-level conference on renewable energy, following events in Beijing in 2005 and Bonn in 2004.

Members of the Bush cabinet and other leaders from around the world will address such topics as the benefits of large-scale renewable energy deployment on energy security; climate change; air quality and economic growth; multiple policy options and best practices that encourage and enable accelerated renewable energy up-take; and advancing the networks and partnerships to explore and initiate renewable energy projects.

conferences, Energy, News

Waste to Fuels Conference

Cindy Zimmerman

Waste to FuelsThe Southern Waste Information eXchange and the Florida BioFuels Association are sponsoring the 1st Annual Waste-to-Fuels Conference & Trade Show in Orlando, Florida on April 6-8, 2008.

Florida BioFuelsThe conference will provide a forum for informing the public and private sectors of the economic and environmental benefits of converting waste materials to alternative fuels such as biodiesel and ethanol as well as energy recovery. Registration information is on-line and those who register also receive a free one-year membership in the Florida BioFuels Association.

Biodiesel, Cellulosic, conferences, Ethanol, News

Ice Cream and E85

Cindy Zimmerman

Fords Ice CreamThe first E85 station for the state of Mississippi is scheduled to open later this month.

Fords Ice CreamFord’s Fuel off I-20 in Newton is pleased to be offering the fuel at Ford’s Ice Cream Museum, which boasts a 100% green facility, “saving the planet one scoop at a time” with the ingredients of “cows – sunshine – grass – farms.”

As you can tell by their website, Ford’s is a big supporter of flex-fuel vehicles and E85 as a member of the National Ethanol Vehicle Coalition.

E85, Ethanol, Flex Fuel Vehicles, News

Minnesota Researchers Looking at New Oilseeds

John Davis

umcrookston.gifResearch into additional oilseeds to make into biodiesel is gaining more popularity, especially as the cost for soybean oil, currently the most commonly used feedstock, soars to record levels.

Paul Aakre University of Minnesota-Crookston researcher is one of those looking at expanding the field of oilseeds, according to this article in the Dickinson, North Dakota Press:

aakrepaul.jpg“We are hearing more and more positive talk when it comes to biodiesels, even more so than corn for ethanol,” Aakre said. “One of the advantages of biodiesel is the potential for individual farmers or a small group of farmers to produce their own fuel in a much simpler technology than ethanol.”

Aakre and one of his students, Jade Estling, Roosevelt, Minn., are embarking on a project that will test the viability of canola meal as a heating source in wood stoves.

The project will use the same basic process for extracting canola oil for biodiesel. Instead of using the pulp or the meal extrusion a byproduct of the process solely for cattle feed, the meal will be made into pellets that will be tested by Northwest Manufacturing Inc., in Red Lake Falls, Minn., which makes wood stoves.

Aakre and Estling will team with a group of canola growers from the Wannaska, Minn., area, which provided the UMC researchers with a twin-screw expeller, a $16,000 machine used to extract oil and meal from oil seeds.

Aakre will be producing some of that oil into biodiesel right on the UM-Crookston campus with some of the biodiesel going back to farmers who provided the canola. The canola meal, a by-product of the oil extraction process, will be fed to cattle.

Biodiesel