Florida Biofuels Boost

Cindy Zimmerman

FL Farm to FuelNew proposed motor fuel rules for Florida could be just the ticket to boost ethanol blends in the country’s third largest gasoline market.

Reuters reports that the proposed rules are the result of a hearing held in October at the urging of the ethanol industry and several oil companies to relax the state rules that had discouraged refiners from adding ethanol to gasoline sold in the region.

South Dakota-based POET, the largest U.S. ethanol producer, expects to supply the Florida market from five biorefineries it is building in Ohio and Indiana. It hopes to send the fuel by train down to the Southeast.

The Miami Herald reports that five ethanol plants are planned for Florida, “one that would use feed corn but others that would get the fuel from citrus peels or other plant waste.”

The state has 11 waste-to-energy plants that burn trash to produce electricity, and two power companies have announced plans to build power plants that get their energy from wood waste and a special variety of grass.

There are at least 25 million acres of commercial land or forest that are ripe for making fuel, and the state has the longest growing season in the nation.

Energy, Ethanol, News

Rose Bowl Fans Learn About Renewable Fuel

Chuck Zimmerman

Illinois Corn Growers GraphicThe Illinois Corn Growers made some in-game statements during the Rose Bowl. Too bad the local team didn’t win. This graphic is an example of the messages they used for this promotional opportunity.

The game on the field may not have yielded the desired results that the University of Illinois football program had hoped for on Tuesday, but Illinois did make a significant impact. It was in fact the Illinois Corn Marketing Board (ICMB) that provided a significant “win” for the State of Illinois’ agri-business community, at the prestigious Rose Bowl in Pasadena.

The ICMB used the national stage to deliver a few poignant messages. First, Illinois farmers want to help curb the nation’s dependence on foreign oil through the use of ethanol. Secondly, the nation can rest assured that farmers have the capacity to accomplish this, while still providing more than the necessary amount of corn as a food source.

With the University of Illinois making an appearance in the Rose Bowl for the first time since 1984, the ICMB partnered with InStadium, Inc., a sports media and marketing company, to harness the national exposure of the more than 93,000 attendees. All of this was done in an effort to increase the awareness of the uses and implications of ethanol, which is widely regarded as an environmentally friendly fuel alternative.

corn, Ethanol, Promotion

Make Ethanol New Year’s Resolution

Cindy Zimmerman

ACEThe American Coalition for Ethanol (ACE) also voiced concern about oil reaching $100 a barrel for the first time this week.

ACE Executive Vice President Brian Jennings said, “For the sake of the nation’s economic health, our New Year’s resolution must be to put the brakes on this costly and risky reliance on oil and accelerate our use of domestically produced ethanol.”

“The more we can increase consumer access to ethanol-blended fuel, the better off our economy will be. Increasing the number of flexible fuel vehicles and the availability of E85, as well as approving the use of mid-range ethanol blends such as E20 and E30 for standard autos, will further insulate consumers against the pinch of $100 oil,” he added.

ACE, Ethanol, News

New POET Plant Opening

Cindy Zimmerman

POETPOET Biorefining – Leipsic will host a grand opening ceremony January 10 to mark the beginning of ethanol production. This facility will be the first operating ethanol plant in the state of Ohio and POET’s 22nd ethanol production facility.

Among the speakers scheduled to kick off the new plant are Renewable Fuels Association president Bob Dinneen, Ohio Governor Ted Strickland and, of course, POET CEO Jeff Broin. The festivities begin with a Vanguard Squadron Fly-over at 10:45 am.

EPIC, Ethanol, Facilities, News

As Ethanol Mandate Starts in MO, Biodiesel Requirement Proposed

John Davis

Missouri’s requirement to have all gasoline contain at least 10 percent biodiesel started on January 1st. And now, there’s a proposal in the legislature to make a similar mandate for biodiesel.

senstouffer1.GIFState Sen. Bill Stouffer’s (R-Napton) SB 759 would require all diesel fuel sold in the state would contain a biodiesel blend by April 1, 2010:

fuel terminals in Missouri that sell diesel fuel shall sell biodiesel, conventional diesel fuel, and biodiesel-blended fuel that contains 5% biodiesel by volume, but it shall not be considered a violation for a terminal to sell biodiesel-blended fuel that contains more than 5% biodiesel by volume provided any such sale adheres to notification requirements promulgated by the Department of Agriculture.

Current law allows fuel retailers, wholesalers, distributors, and marketers to purchase fuel ethanol from any terminal, position holder, fuel ethanol producer, wholesaler, or supplier. The act allows these entities to purchase biodiesel in the same manner.

The Department of Agriculture shall develop cold temperature operability standards for biodiesel and shall enforce the standards beginning January 1, 2010.

The bill is similar to legislation introduced by Stouffer last year. That bill ran out of time before the session ended last May.

Biodiesel, Ethanol, News

Cary, NC Going to Biodiesel

John Davis

carypublicworks.jpgThe city of Cary, North Carolina has changed its fleet of diesel vehicles to biodiesel. The city runs about 3.5 million miles a year, and now those miles will be greener.

This story in the Cary (NC) News says 169 diesel vehicles are now running on B20 biodiesel:

“It’s purely trying to reduce our dependency on oil,” (Mike Bajorek, the town’s public works director) said.

The move to biodiesel came after a spike in fuel prices following Hurricane Katrina in late summer 2005.

“We’ve been watching our fuel usage,” Bajorek said.

Data from recent Cary budgets bear that out. In fiscal year 2006, which ran from July 1, 2005 to June 30, 2006 and included Katrina and its aftermath, the town used 528,209 gallons of fuel.

And the change seems to be saving fuel for the city:

Estimates for fiscal year 2007, which ended June 30, 2007, show an increase to 535,000 gallons, or 1.3 percent, even though the fleet grew by 26 vehicles.

A similarly small increase in fuel usage, along with a similar increase in fleet size is expected for fiscal year 2008, which ends June 30.

Biodiesel

Oil Hits $100 a Barrel

Cindy Zimmerman

Crude oil prices broke the $100 a barrel barrier for the first time today on rising concerns over violence in Nigeria.

Light, sweet crude for January delivery rose $4.02 to $100 a barrel on the New York Mercantile Exchange, before slipping back to $99.48.

EPICRobert White, interim head of the Ethanol Promotion and Information Council, says higher oil prices translate into economic hardship for consumers and higher profits for oil companies. “The American public is looking for realistic solutions to our dependence on a dwindling supply of energy of which ethanol plays an important role,” said White. “Once again, the ethanol industry will rise to the challenge and continue to provide a renewable, efficient, economy boosting product for Americans. Without ethanol, the cost of our oil addiction is far too great.”

According to White, America’s foreign oil bill continues to climb, to a record total of nearly one billion dollars a day. Oil from the Middle East accounts for approximately 17 percent of U.S. oil imports.

RFARenewable Fuels Association President Bob Dinneen says the continuing volatility of world oil and energy markets highlights the importance of the energy legislation Congress passed late last year.

“By pairing higher fuel economy standards with the increased use of renewable fuels from non-traditional feedstocks, our country now has a policy and plan in place to begin mitigating the impact of volatile and ever-increasing world oil prices,” said Dinneen. “The energy paradigm in this country and around the world is beginning to change. Volatile oil prices and dwindling supplies further emphasize the need to develop renewable alternatives. The American ethanol industry stands ready to help lead the revolution away from fossil fuels and to a more stable, sustainable energy future.”

Canadian RFAThe Canadian Renewable Fuels Association says the case for biofuels has never been stronger.

“Oil at $100 makes the case for biofuels crystal clear. The price of oil is simply too high and too unreliable. We must continue to diversify our fuel supply” said Gordon Quaiattini, President of the Canadian Renewable Fuels Association. “Biofuels, such as ethanol and biodiesel, are real viable alternatives and are better for the environment, prices, and farmers.”

EPIC, Ethanol, News

KCC Decision Slows Kansas Wind Development

John Davis

westar.jpgA decision by the Kansas Corporation Commission could stymie some wind energy development plans in that state. Westar Energy Inc., Kansas’ largest electric company, had asked commissioners to allow the company to earn higher profits because Westar had invested in 295 megawatts of generating capacity from wind farms in three counties, enough to light up more than 80,000 homes.

This story from the Kansas City Star says regulators have denied the request, and that could keep Westar from pushing for more wind energy projects:

The Kansas Corporation Commission said that the Topeka-based utility’s plans were prudent and that it would be allowed to recover up to $282 million in construction costs through its rates once the wind power starts flowing next year. But the commission refused to increase the profits Westar can earn as a regulated monopoly.

Westar had said it would pursue projects for an additional 200 megawatts of wind-generated capacity. But Bill Moore, the utility’s president and chief executive officer, said Friday that those plans were on hold indefinitely.

“We are concerned about the uncertainty introduced by the commission’s decision,” Moore said. “We don’t see the order encouraging the future development of wind energy in Kansas.”

Westar had wanted to get an additional one percent higher return because of the risk involved in the venture. Ironically, the decision comes after last May’s announcement by Gov. Kathleen Sebelius to have wind and other renewable resources account for 10 percent of the state’s generating capacity by 2010 and 20 percent by 2020. In addition, Sebelius’ administration had denied construction permits for two coal-fired plants in southwest Kansas because of the emissions.

So it seems the question for Kansas seems to be: if wind energy is not good enough to give power companies a little more incentive to take that risk, what is?

Wind

Farm Bureau: Renewable Energy Big in ’07

John Davis

fblogo.jpgAmong the stories seen as significant to the American Farm Bureau in 2007, renewable energy ranked right up there with the new Farm Bill and issues with migrant workers in the fruit and vegetable crop fields.

And this column from Farm Bureau says ethanol and biodiesel will be in the headlines for years to come:

Energy products including ethanol-blended fuels and biodiesel made from corn, soybeans and other crops continued to make news headlines in 2007. These home-grown fuels have a meaty role to play in increasing America’s energy independence. They got a boost at the end of the year when a new energy bill was signed into law mandating the use of 36 billion gallons of ethanol and biodiesel in the U.S. transportation fuel supply by 2022.

Another big story for ’07 was the record-sized harvests for corn and soybeans… another product of the renewable energy boom.

Biodiesel, Ethanol, News

Nova Opens Up IL Plant for Forum, Tour

John Davis

novalogo.jpgHouston-based Nova Biosource is opening up its biodiesel plant at Seneca, Illinois for a financial analyst and institutional investor forum as well as a tour of the new facility on Friday, January 25th, 2008. The new facility will be mechanically complete right after the start of the new year and substantially completed this summer.

novapic.jpgCheck out this drawing of the facility (on the right). This company press release has more details about the company:

Nova Biosource Fuels, Inc. is an energy company that refines and markets ASTM standard biodiesel and related co-products through the deployment of its proprietary, patented process technology, which enables the use of a broader range of lower cost feedstocks. Nova is focused on building and operating a number of Nova-owned biodiesel refineries, with a goal of attaining production capacity of between 180 to 220 million gallons of biodiesel fuel on an annual basis. In particular, it is investing to improve the profitability of its 10 million gallon per year biodiesel refinery in Clinton, Iowa, while also completing the construction of its 60 million gallon per year biodiesel refinery in Seneca, Illinois. Nova’s business strategy for the next three years includes building up to seven biodiesel refineries with production capacities ranging from 20 to 100 million gallons each per year.

You can see more about Nova Biosource at the company web site, NovaEnergyHolding.com.

Biodiesel