Ethanol Not to Blame for High Wheat Prices

John Davis

Keith CollinsThe latest knock against ethanol claims the green fuel was fueling a spike in wheat prices as more growers were switching to corn acres to provide the feedstock for ethanol. But USDA’s Chief Economist Keith Collins says it just isn’t so.

This story from Farms.com says Collins claims global stocks are really behind the rise in wheat:

Collins took umbrage Monday with a weekend article in the Washington Post that attempted to peg high wheat prices to the demand for ethanol and the crunch for acres.

Collins spoke to more than 200 members of the National Farmers Union Monday at USDA headquarters. The Farmers Union has its fly-in this week in which farmers will lobby members of Congress on the farm bill. He drew a line between some of the factors affecting the overall U.S. economy and agriculture.

High grain prices and higher beef, pork and poultry prices have led to more criticism linking the price spikes to higher grocery bills and tying it all back to ethanol production. Collins acknowledged it is difficult to refute that the biofuel economy has spurred higher commodity prices, but more issues than the number of acres dedicated to biofuel feedstocks have played into the current wheat price spike.

“That has nothing to do with ethanol, Collins said. “That continues to astonish me.”

Collins noted this year’s wheat crop was planted before corn prices took off. The high price of corn had no factor in wheat planting, Collins said. The key factor stems from smaller crops in Canada, the Ukraine, Australia and the European Union, Collins said.

He went on to tell the gathering that there will be more competition next spring for corn acres instead of soybean and wheat, but he says the real driver on the prices continues to be the fact that wheat stocks worldwide are at their lowest point since USDA began tracking global stocks in 1960.

Ethanol, News

Safeway Turns to the Sun

John Davis

SafewayCalifornia-based grocery store giant Safeway is converting 23 of its stores to run on solar power.

This story on Environment News Service covers the opening of one such store in Dublin, California:

mcnerney1.JPGCalifornia Congressman Jerry McNerney joined Safeway officials on a tour of the Dublin store’s rooftop solar panel array. The unit is currently generating electricity to power the 55,000-square-foot retail facility.

“I applaud Safeway for its commitment to sustainability and for being an environmental leader among California-based companies,” said Congressman McNerney. “Their Dublin solar project stands as a model for other companies to invest in the same renewable energy technology in California and elsewhere.”

The entire Dublin Safeway facility utilizes renewable energy. The store’s on-site retail fuel station already is powered by wind energy.

In fact, two years ago, all of Safeway’s fueling stations made the move to wind power.

The solar power project at the Dublin store is the carbon equivilant of taking 50 cars off the road.

Uncategorized

Commercial Roofer Goes Green with Biodiesel

John Davis

Highland Roofing CompanyThe shingles might be black, but a leader in the commercial roofing business in California and Arizona is going green… by using bidiesel for its entire fleet of trucks in California.

This press release from the company says Highland has always been committed to lowering man’s environmental footprint, and this was a natural fit:

The switch to Biodiesel fuel was a natural progression for Highland Commercial Roofing; committed to the “Green” movement, they have helped building owners and property managers throughout the Southwest achieve environmental building and energy saving goals since 1991.

Highland Commercial Roofing specializes in the installation of Energy Star rated “Cool-Roof”, U.S. Green Building Council “LEED” qualified, and California Title-24 Cool-Roof Compliant Roofing Systems. Highland’s roofing systems are environmentally friendly, sustainable, and help reduce building energy consumption, while contributing to the overall reduction of Urban Heat-Island effect in major cities.

Biodiesel

Possible Soybean Crush Partnership in Wisconsin

John Davis

LandmarkOfficials with Landmark Services Cooperative have announced they want to partner with the state of Wisconsin to build a soybean crushing facility near Evansville, WI., which could help the possibilities of a biodiesel facility going in to the same area.

This story in Wisconsin Ag Connection has more details:

During a public press conference at its Rock County facilities on Thursday, Landmark urged the state Legislature to support Governor Doyle’s $30 million renewable energy package and include a grant and incentive program for the distribution and production of biodiesel in the state budget, including $4 million toward the development of a soybean crushing facility. State Sen. Jon Erpenbach and Rep. Brett Davis, longtime proponents for legislation supporting renewable energy, are also pushing the measure in the state legislature.

Landmark President John Blaska says his company is committed to the increased use of renewable resources in the state, including biodiesel fuel which is why our support for the Governor’s $30 million renewable package is strong.

“We are excited about the prospective partnership–both strategically and financially–with Wisconsin government to invest in a soybean crushing facility in Evansville which will provide a great boost to Wisconsin’s biodiesel, soybean and increasing livestock industries,” Blaska said. “This is not only beneficial for the environment but is important for our state’s economy and to stay competitive in the biodiesel and agricultural sectors.”

The article goes on to call Evansville ‘geographical gem’ for this kind of project because nearby farmland and easy access to truck and rail transportation. Also, the 45-million-gallon-a-year North Prairie Productions biodiesel plant is under construction right next door.

Biodiesel

First Commercial Biomass Ethanol Plant Slated for Kansas

John Davis

An area best known for its natural gas fields will become home to the first commercial biomass ethanol plant in the U.S.

This story in the High Plains Journal says Abengoa Energy will build the plant in Hugoton, Southwest Kansas:

The new plant should be completed in 2010 and is funded in part by the U.S. Department of Energy. Abengoa Bioenergy New Technologies is constructing the facility that is designed to produce approximately 13 million gallons of ethanol annually from a daily input of 930 tons of cellulosic crop residue. The company anticipates using stock such as switch grass, corn stover, grain sorghum and wheat straw from mainly a 50-mile radius of Hugoton. The facility will also produce 88 million gallons of ethanol using traditional grain processing.

The company says it needs only about 4-7 percent of the biomass available within a 50-mile radius of the production plant to satisfy the new plant’s 930 tons per day appetite. The biomass will be the leftover residue that most farmers would get rid of… but still enough residue to help the area’s soil.

Today’s announcement was welcomed by state and federal elected officials:

Gov. SebeliusThe announcement of the new plant was attended by Kansas Governor Kathleen Sebelius. “Twenty to 25 years from today you are going to look back to today as a historic day,” she said.

Rep. Jerry MoranU.S. Congressman Jerry Moran, also told the group he sees energy independence as key in fighting terrorism. When the United States reaches a point of being dependent on the middle East for energy production, we will all live in a safer place, he said.

Ethanol, News

POET Turns 21 with Plant in Indiana

John Davis

POETEthanol-giant POET has opened its 21st plant during a grand opening ceremony at its latest facility near Portland, Indiana. The 65-million-gallon-a-year makes POET the largest ethanol producer in the world cranking out an amazing 1.1 billion gallons annually.

This press release from the company says this is the first POET ethanol plant in Indiana, but two more are in the works for the Hoosier State:

Broin21“When we started our first facility in 1988 at one million gallons per year, we had no intentions of becoming the largest,” Jeff Broin, CEO of POET, said. “We simply realized that farmers needed additional uses for their crops and the country needed a clean-burning, domestic fuel. Now, with ten thousand farmer-owners and investors from all walks of life, we are developing the rural economy, improving the environment and reducing our nation’s dependence on foreign oil.”

LugarPOETU.S. Senator Richard Lugar, who spoke at the ceremony said, “POET Biorefining – Portland and the work of the community of Portland to support it are part of the vital effort to build a more secure America – an America less reliant on foreign sources of oil.”

Not only is the ethanol from the plant good for the environment, but the ethanol plant itself is doing its part. First of all, it using using a process that POET calls the BPX™ process that doesn’t use heat in the cooking process of producing ethanol, reducing energy usage by 8-15 percent in comparison with conventional plants. It will also be outfitted with a regenerative thermal oxidizer that eliminates up to 99.9 percent of air emissions. In addition, the Portland, Indinan plant gets all of its water from a nearby quarry that pumps out the water anyway to do the excavation.

Ethanol, News

OECD and FAO Not Friends of Ours

Chuck Zimmerman

OECDIf you’re not familiar with the Organization for Economic Co-operation (OECD) you probably will soon since they’ve released their “OECD-FAO Agricultural Outlook – 2007-2016” report and it’s already being quoted and used by the people who want to bash the development of biofuels, most especially ethanol. The report devotes quite a bit of misguided text to the subject of biofuels. Additionally, they’ve issued a background paper from their 20th meeting of the Round Table on Sustainable Development, held at the OECD on September 11-12 titled, “Biofuels – is the cure worse than the disease?” (pdf). It states, “The conclusion must be that the potential of the current technologies of choice — ethanol and biodiesel — to deliver a major contribution to the energy demands of the transport sector without compromising food prices and the environment is very limited.”

I’ve been to FAO headquarters and have followed them over the years. The United States is one of the biggest financial contributors to it but in my experience the organization seems to often go out of its way to criticize our country. This latest report consists of a serious amount of wild speculation using assumptions. For example, look at this section from the Outlook report:

This Outlook does not analyse the developments in the biofuels sector, but treats biofuel production through implicit and exogenous assumptions in a number of countries. In particular these include the US, the EU, Canada and China, while ethanol production in Brazil is an explicit part of the sugar baseline.

US
The US is assumed to substantially increase its ethanol production, which predominantly is based on domestic maize. Ethanol output and corresponding maize use is assumed to grow by almost 50% in2007, and while growth rates are assumed to decline thereafter, US ethanol production is still assumed to double between 2006 and 2016 (Figure1.2). This expansion would exceed the requirements stated in the Renewable Fuel Standard (RFS) by far. In consequence, maize use for fuel production, which has doubled from2003, would increase from some 55Mt or one-fifth of maize production in 2006 to 110Mt or 32% at the end of the projection period.

Bio-diesel production, in contrast, is assumed to remain relatively limited in the US, due to lower profitability caused by high feedstock costs. Soya oil use for bio-diesel production is expected to reach 2Mt in2007 and to further increase to 2.3Mt in2011, with no growth assumed for the remaining projection years.

You’ve got to love those “exogenous assumptions.” This makes me think back to one of my favorite college teachers, Mr. Frank Counts. He hammered into our heads that to assume is to make an “ass” of “u” and “me.” This whole report is based on assumptions rather than what I would consider credible science but since it’s such a liberal group the whackos with an anti-ethanol agenda are already quoting it like it’s gospel.

Take this twit who writes for ReportonBusiness.com who states, “A small army of scientists and environmentalists has warned for years that ethanol, especially of the corn-based variety so popular in North America, is, at best, misleading advertising, at worst, a crime against nature and taxpayers alike.” Army? More like a group of whackos with an agenda who cater to people like this guy.

Google around and you’ll find more like him. Domestic Fuel was started precisely to provide an online source for news and information on the subject of renewable fuels which points you to what’s really going on in the industry and especially the credible work that’s being done to solve our energy problems. There’s a lot of emotional propaganda floating around the press on this issue and these reports are going to fuel their fire I’m sure.

Biodiesel, Ethanol, International, News

Garbage Trucks Pick Up More than Trash with Biodiesel

John Davis

lawrenceville1.GIFThe Lawrenceville, Georgia city fleet supervisor got a surprise when he converted his garbage trucks to biodiesel.

“I was expecting the economy to go down and the trucks to be more sluggish,” [Lamar] Hall said. But now, “I figure it’s about 10 percent more efficient with biodiesel.”

This story in the Atlanta (GA) Journal-Constitution says the suburban Atlanta community is reaping the benefits of that conversion.

Drivers said their engines had more power. The trucks ran cleaner, Hall said, and came back to the shop with more fuel in the tank.

Now Lawrenceville’s garbage trucks will use a biodiesel mix, a decision that Hall figures will save the city about $12,000 a year in lower fuel costs, increased fuel efficiency and lower maintenance costs.

The article goes on to show how the city saves money each time it pumps biodiesel into a 6,500-gallon fuel holding tank:

• $120 — amount the city saves because biodiesel cost less than ordinary diesel fuel

• $416 — amount the city saves because biodiesel doesn’t require an additive that ordinary diesel requires

• $1,462.50 — amount the city saves because biodiesel fuel results in better gas mileage for its garbage trucks

• $1,998.50 — total amount the city saves each time it fills a 6,500-gallon holding tank

• 6 — number of times a year the city fills its holding tank

• $11,991 — amount the city saves in one year by putting biodiesel in garbage-truck gas tanks

Money in the city’s pockets, less pollutants in the air. Any better example of win-win?

Biodiesel

Western Dubuque Biodiesel Holds Grand Opening

John Davis

westerndubuque.gifState, industry, and company officials gathered this week at a brand-new biodiesel plant near Farley, Iowa for the official ribbon-cutting ceremony for Western Dubuque Biodiesel’s $50 million plant.

This story in the Telegraph-Herald (Dubuque, IA) says those in attendance praised biodiesel’s environmental and economic contributions:

westerndubuque1.JPG“This plant has no carbon (emissions),” [Nile Ramsbottom, president of Renewable Energy Group Inc. – the company that built the plant -] said. “For every gallon produced here, it’s just one less gallon we have to import.”

Western Dubuque’s successful launch is one more step toward pushing Iowa to the forefront of the alternative fuels industry, according to some of the state and local representatives at Wednesday’s gathering.

State Sen. Tom Hancock, of Epworth, said some state leaders are looking to make Iowa the “renewable fuels capital of the United States.”

“The best return on state incentives or benefits come from projects like the one we’re celebrating today,” he said.

Others think the goal of taking the lead in the industry has already been achieved.

“If we’re not there yet, we’re awfully close,” said Tom Brooks, the plant’s general manager.

And just like that, we’ve got another 30 million gallons of DOMESTIC, green fuel added to the mix.

Good luck, Western Dubuque Biodiesel!

Biodiesel

Ethanol Shifting Research to Pipelines

John Davis

Research and development efforts to get ethanol into the nation’s already-existing oil pipeline… a key issue into getting more ethanol into the nation’s gas tanks… took a step forward this week.

AOPLThis story in Ethanol Producer Magazine says the Association of Oil Pipe Lines (AOPL) is expanding its ongoing research and development efforts to get past the technical barriers to pipeline transportation of ethanol:

APOL President Shirley Neff said the expansion in research and development has the support of the U.S. DOT’s Pipeline and Hazardous Materials Safety Administration.

One project being expedited by the new focus on ethanol research and development is testing the feasibility of transporting ethanol blends in existing pipeline infrastructure without significant modification. The low-level blends with gasoline will be tested to see if E10, E15 or E20 can be transported without causing stress corrosion cracking in the pipeline—one of the bigger hurdles associated with fuel ethanol. Initial test results are expected within 12 to 18 months.

The AOPL has also announced it will continue its study looking at the environmental and stress conditions that causes stress corrosion cracking. Researchers are looking at lessening that problem.

Ethanol, News