Ethanol Baby

Cindy Zimmerman

Baby EthanolThere were lots of babies at the 2008 Commodity Classic but this one really caught our attention.

Her name is Danica – after Indy race car driver Danica Patrick – and her little onesie featured the IRL logo on the front and on back it said the “Smell of Ethanol.” How cute is that! Her parents were letting her pose on top of the ethanol display in the Pioneer booth, prompting oohs and ahs from the passers-by.

Baby EthanolThe E85 sticker on her shoulder was supplied by the National Ethanol Vehicle Coalition.

Attendance at this year’s Commodity Classic in Music City was record-breaking, according to the final numbers:

4,534 Total Registration (record)
145 Total Media (record)
847 Trade Show Booths (record)

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

Commodity Classic, corn, E85, Ethanol, Indy Racing, John Deere, News

John Deere Ethanol Risk Protection

Cindy Zimmerman

John Deere Risk Protection has introduced the industry’s first-ever Ethanol Policy by providing coverage to corn producers who have delivery contracts for the purpose of ethanol production.

John DeereThe policy was officially introduced at the end of January and Deere has been talking with growers at events during the last month, including the Farm Machinery Show and last week’s Commodity Classic.

Deere held a press conference at Classic where Dennis Daggett, Director of Marketing for John Deere Risk Protection, explained the policy to the ag media.

Dennis DaggettVery simply, the policy insures yield shortfalls below contracted volumes in the event the price to replace the corn rises above the federal crop insurance coverage. The policy is being offered in Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. “We offered it where the majority of the active ethanol plants are in existence today,” Daggett says.

Since they introduced the policy, Daggett says there has been a lot of buzz in the industry. “We have fairly modest expectations on the product itself because we know that there is a very specific type of farmer who would be interested in this product, a farmer who actually contracts more than 50 percent.”

Daggett says the policy is beneficial for the ethanol plants because it allows them to actually work with the farmer in case there is a shortfall on their delivery contract. “We think this is a win for the ethanol plants because it stabilizes their input of grain and stabilizes their relationship with the farmer.”

Listen to an interview with Dennis about the ethanol policy here:
[audio:http://www.zimmcomm.biz/john-deere/cc-jd-daggett.mp3]

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

Audio, Commodity Classic, corn, Ethanol, John Deere, News

Deere Running on Biofuels

Cindy Zimmerman

John Deere SessionJohn Deere sponsored one of the most popular and well attended Learning Center sessions at the 2008 Commodity Classic in Nashville this week.

“Starch and Cellulose as Ethanol Feedstocks” discussed the importance of starch as today’s primary ethanol feedstock, harvesting challenges for increased corn yields as well as cellulose, and how to increase demand for biofuels.

Don Borgman, director of Agricultural Industry Relations led the discussion on issues for future production and distribution of ethanol, looking out to the year 2015. “Mostly what we are concerned about it keeping our eye on that demand ball,” said Borgman.

Don BorgmanHe says there are two critical issues – making sure we increase the number of E85 pumps nationwide and increasing the number of flex-fuel vehicles on the road. “If we get those two things done, we ought to be able to keep up fairly well with the supply,” he said.

Borgman says John Deere has an interest in helping the biofuels industry not just because of their customer base, but also from an energy security standpoint and an environmental standpoint. They are helping by promoting the use of biodiesel blends in their equipment and by looking towards the future for cellulosic ethanol and developing equipment to harvest the next generation of dedicated energy crops.

Listen to an interview with Borgman here:
[audio:http://www.zimmcomm.biz/john-deere/cc-jd-borgman.mp3]

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

Audio, Biodiesel, Cellulosic, Commodity Classic, Ethanol, John Deere, News

Chevron, Weyerhaeuser Team Up for Biofuels

John Davis

chevronweyer.jpgOil giant Chevron and timber giant Weyerhaeuser are teaming up to make biofuels.

This story in the Seattle Times says the new company formed from the partnership, Catchlight Energy, will be looking to get the green fuel from cellulose and lignin:

Catchlight will initially have offices at Weyerhaeuser’s Federal Way headquarters and at Chevron’s San Ramon, Ca. homebase. Chevron executive Michael Burnside will be the new venture’s chief executive, and W. Densmore Hunter of Weyerhaeuser is chief technology officer.

Both firms will contribute technology and personnel. Catchlight may employ 30 to 40 people over time in its research and development effort, said Weyerhaeuser president Dan Fulton.

The venture will study “not only the technology, but also the commercial implications of creating a viable business there,” Fulton said.

The creation of Catchlight formalizes a partnership Chevron and Weyerhaeuser entered in April 2007. At the time, many energy and agricultural companies began seeking to leverage their expertise into the fast-growing biofuel business.

This is not the first time unlikely partners have teamed up to make biofuels. You might remember that “Big Oil” and “Big Chicken” (ConocoPhilips and Tyson, respectively) teamed up last year to turn chicken fat into biodiesel.

Cellulosic, Ethanol, News

Challenge to Argentine Export Tax System

John Davis

asa_logo.jpgThe American Soybean Association (ASA) is filing a World Trade Organization challenge to Argentina’s export tax system… a system the ASA says turns out to be an unfair subsidy for Argentine biodiesel exports.

This story posted on Agriculture Online has details:

The Argentine export tax system favors biodiesel with lower export taxes for the fuel than for exports of raw soybeans, ASA’s president, John Hoffman of Waterloo, Iowa, told Agriculture Online.

“Right now there’s a huge advantage for crushers down there to export biodiesel,” Hoffman said. It amounts to $1.11 per gallon of biodiesel. Hoffman said it’s so profitable, that soybean crushers in Argentina are importing soybeans from Brazil and Paraguay.

So far, the biodiesel exports aren’t coming into the U.S., where biodiesel plants are already limiting production due to the high cost of vegetable oils. Hoffman said the Argentine biodiesel is mainly going to the European Union.

On the way, tankers of biodiesel stop by U.S. Gulf Coast ports, where as little as one percent petroleum diesel is blended in. That qualifies a load of biodiesel for the $1 dollar a gallon biodiesel tax credit intended for U.S. producers, said ASA spokesman Bob Callanan. That so-called “splash and dash” adds another $1 in subsidies, paid by U.S. taxpayers, for South American biofuel bound for Europe.

ASA officials are optimistic that they’ll be able to close the “splash and dash” loophole by stopping Congress from renewing it before it expires at the end of this year.

Biodiesel, International, Legislation

Ohio Becoming Mecca for Green Collar Jobs

John Davis

ohio.jpgA new report says Ohio could be home to 174,000 advanced, renewable energy jobs by 2030.

The report by the American Solar Energy Society, funded by the non-profit Ohio Business Development Coalition, says the Buckeye State is pioneering efforts to increase the number of skilled professionals in the renewable energy field:

According to the Ohio Business Development Coalition (OBDC), the nonprofit organization that markets the state for capital investment, Ohio’s universities and colleges are gearing up to meet the need for skilled green collar workers through new programs, degrees and training specific to the advanced energy industry.

One example of an educational institution rising to the occasion is Hocking College in Nelsonville, Ohio. The college was recently awarded a $1.6 million grant from the U.S. Department of Commerce’s Economic Development Administration to build an innovative learning facility. The Hocking College Energy Institute will feature modern learning labs for students studying in the college’s energy programs.

“This state-of-the-art facility is truly a place where students will receive hands on training in advanced energy,” said Jerry Hutton, dean of energy and transportation technologies for Hocking College. “Training skilled workers is critical to attracting renewable energy companies to Ohio and recharging the state’s manufacturing base.”

Ohio’s direct market access to renewable energy consumers and state-sponsored programs are helping companies develop and launch the next generation of advanced energy technologies and compete even more effectively in a global economy. Through initiatives such as Ohio Governor Ted Strickland’s Energy, Jobs and Progress plan, announced in 2007, Ohio is modernizing its energy infrastructure, ensuring affordable and stable energy prices and attracting renewable energy jobs of the future through an Advanced Energy Portfolio Standard. Ohio also is a driving force behind initiatives to increase the production of ethanol, biodiesel fuels and cellulosic ethanol, a fuel produced from farm waste and plants.

Ohio’s Third Frontier Project is also part of that effort to increase those green collar jobs. It’s a 10-year, $1.6 billion initiative to help build relationships between companies and higher education. It marks the largest commitment by Ohio to expand high-tech research capabilities, promote innovation, company formation and create high-paying jobs.

Biodiesel, Ethanol, Miscellaneous, News, Solar, Wind

Ag Secretary on RFS

Cindy Zimmerman

Secretary of Agriculture Ed Schafer has only been on the job officially for about a month but he has been busy making the rounds of farm meetings. During his appearance at the 2008 Commodity Classic on Friday, Schafer expressed great optimism for agriculture – record prices, record farm income, record exports and the blending of energy and agriculture.

Ed SchaferDuring a press conference following his appearance at the general session, Schafer fielded questions from farm media about biofuels and ethanol in particular. Asked if there was any chance that there might be a delay in implementing the new Renewable Fuels Standard because of recent reports claiming that biofuels are bad for the environment, Schafer said no.

“I don’t because no matter what happens it’s not going to have an effect this year,” Schafer said. “We are getting to the point of topping out on ethanol production, not because of production capacity, but because of our ability to deliver it in the current infrastructure.”

“The research dollars are going in to move from ethanol to the cellulosic generation,” Schafer continued. “While we are playing catch up on non-price distorting feedstocks for ethanol, which is going to take some time, we do think we are arriving at the levels this year where we are going to see a leveling off of (commodity) prices.”

Listen to Schafer’s comments here:
[audio:http://www.zimmcomm.biz/commodity-classic/schafer-press-ethanol.mp3]

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

Audio, Commodity Classic, corn, Ethanol, News

BMW Planning of Hydrogen Future

John Davis

bmw.jpgWhile some car makers might be betting the future for fuels will be a mix of several different sources, one major European carmaker seems to be happy to put all of its eggs in one basket.

SFGate.com reports BMW told attendees of the Technology, Entertainment, Design (TED) Conference today in Monterey, California that it is going all in with hydrogen:

“Water is the coal of the future,” a big sign in the middle of the room read. It was a reference to the process of extracting the H from H2O, and then using it to power the same internal combustion engines we use today.

Turns out BMW started its hydrogen program back in 1978, and as such, they have a ton of research on the topic. Lots of interesting factoids. For example, BMW believes:

–The world will hit peak oil in 2025, marking the day the world reaches its peak petroleum production, declining thereafter until we run out.

–Technology will allow us to mass-produce hydrogen, without burning fossil fuels to do so, in the next 10 to 15 years.

–The cost of putting a hydrogen gas station on every 40 to 50 miles of U.S. roadwways would cost between $400 billion and $500 billion.

–We will see the beginnings of hydrogen infrastructure, i.e., gas stations, by 2025.

–We will switch over totally between the years 2040 and 2050.

In the meantime, BMW is still developing hybrids to take advantage of other alternative fuels. But long term, look for the company to put more and more into a hydrogen future.

Car Makers, Hydrogen

SD Biodiesel Tax Break Moves to Governor’s Desk

John Davis

sdcapitol.gifThe South Dakota State House and Senate has voted unanimously to approve a bill that would cut state taxes on diesel mixed with biodiesel.

This story in Land Line Magazine says if the governor signs the bill as expected, it could take a little time before the effects kick in:

At the request of Gov. Mike Rounds, the House and Senate unanimously approved a bill that would reduce the fuel tax on diesel that contains at least 5 percent biodiesel by 2 cents per gallon. The fuel tax applied to regular gasoline and diesel now is 22 cents per gallon. The bill – SB148 – would trim the per-gallon tax on biodiesel to 20 cents.

The per-gallon tax on ethanol already is 20 cents.

Rounds said he wants to provide the same incentive for ethanol use to truckers and other consumers of diesel. Offering the discounted tax rate for biodiesel would encourage production of the fuel made mostly from soybeans, he said.

Tax breaks would not start until biodiesel production capacity in the state reaches 20 million gallons annually. The tax break would end once production reached about 40 million gallons annually.

Biodiesel, Government, Legislation

NBB to Truckers: Biodiesel Getting Better

John Davis

worktruckshow.jpgOfficials with the National Biodiesel Board are telling those who depend on their trucks… and the fuel they put in those trucks… for their living that the quality of biodiesel is getting better.

This story posted on Truck News.com says the NBB’s Richard Nelson has addressed those attending this week’s National Truck Equipment Associations’ Work Truck Show in Atlanta, Georgia:

“We tell you the good, the bad and the ugly – I’m not hear to sugar-coat this,” Nelson told delegates during the show’s Hybrid Truck and Alternative Fuels Summit.

Nelson admitted that ensuring the quality of biodiesel remains the biggest challenge facing the expanding industry. Biodiesel demand in the US skyrocketed to 450 million gallons in 2007, nearly doubling from the 250 million gallons consumed the previous year, Nelson pointed out.

“We are expanding, we’re more than a drop in the bucket,” Nelson said. “But we’re not going to replace all the diesel fuel, we don’t have the feedstocks to do that.”

The National Biodiesel Board says the industry aims to produce volumes equal to 5% of on-road diesel fuel used in the US by 2015, which totals 1.85 billion gallons per year. In order to meet that target, Nelson said the industry must overcome two key challenges: fuel quality and feedstock availability.

“Simply put, B20 (or any other blend) will not be a factor if fuel quality can not be met on a consistent basis,” admitted Nelson. The industry has developed a standard called ASTM D 6751-07b which must be met by all producers in order to qualify for US tax credits and to become road-legal. It includes limits for 18 different properties and is feedstock-neutral. The increased emphasis on quality appears to be working, Nelson said.

Nelson also pointed out to attendees that just two years ago, 60 percent of all biodiesel did not meet the standard. Today, only about 10 percent falls short. He urged trucking companies to make sure they use a reputable supplier when using buying biodiesel for their trucks.

Biodiesel