Missouri Governor Unveils Incentives for E-85 Pumps

John Davis

blunt.jpgMissouri Governor Matt Blunt has unveiled a plan to provide $2 million in tax incentives to fuel retailers who install E-85 ethanol pumps.

According to a press release from the governor’s office, there are only 92 gas stations capable of pumping E-85 out of the more than 4,300 stations in the state. These tax credits would help offset the cost of installing or modifying pumps and tanks to dispense E-85, estimated to cost between $3,000 and $40,000. The proposal comes on the heels of the January 1st E-10 mandate in Missouri:

“We have made several policy changes that make Missouri more energy efficient, environmentally-friendly and a leader in alternative fuel use, such as requiring gasoline to be blended with 10 percent ethanol,” Gov. Blunt said at the Claycomo (near Kansas City) Ford Assembly Plant, home of the Ford Hybrid Escape. “The creation of the Missouri Renewable Fuel Standard was a major step we took to position Missouri as a leader in ethanol production and use, but we can do more. I am proposing we further promote alternative fuel use and better protect our air quality by expanding access to E-85 and provide tax incentives for Missourians who purchase hybrid vehicles.”

The proposal also calls for a $1,500 tax break for those who buy a flex-fuel vehicle, such as the Ford Escape Hybrid, capable of operating on blends of fuel containing as much as E-85. In addition, individuals who buy E-85 could get a $500 a year tax break.

The measure would have to get lawmakers’ approval, and Blunt plans to make it a priority for the coming legislative session that begins next Wednesday (January 9th, 2008).

E85, Ethanol, News

Biodiesel, Algae Makers Merge

John Davis

betterbiodiesel.jpgUtah biodiesel maker Better Biodiesel has announced it will buy GeoAlgae Technologies (GAT). The Arizona-based GAT makes inexpensive feedstock for the production of biodiesel.

This story on C|Net News’ Green Tech Blog says it will give the biodiesel producer a chance to recover from a devastating fire this summer:

The buyout is Better Biodiesel’s first public news since announcing this summer that it would suspend fuel production after its manufacturing fuel processor caught fire. (Better Biodiesel produces roughly 3 million gallons of biodiesel annually, according to the company.) The company said it has developed a waterless technology that can produce biodiesel from low-grade feedstocks without expensive pre- and post-processing of materials. That process, it said, reduces the costs of biodiesel manufacturing and its environmental impact.

The merger will give Better Biodiesel access to GAT’s feedstock and political connections. GAT’s executive team includes former Arizona State Senator Kenneth Bennett. “We are very excited about the opportunity to become a part of Better Biodiesel’s evolving business plan and are looking forward to optimizing shareholder value with a combination of our next-generation GeoAlgae feedstock technology,” Bennett said in a statement.

Biodiesel

Butter Sculpture To Become Biodiesel

John Davis

pafarmshow.jpgThe centerpiece of the Pennsylvania Farm Show will be turned into green energy.

This story in the Centre Daily Times (State College, PA) says the show starts tomorrow (Saturday), and a 900-pound butter sculpture of a cow and a school bus with three children boarding the bus made for the eight-day show will be recycled into biodiesel:

The sculpture will be chopped into pieces, melted and turned into biodiesel by students at State College Area High School and Penn State — another project by the local school and university aimed at teaching kids how to turn waste into alternative fuels. “The key thing about these projects here is that the generation of people in school now is the generation that is going to have to find the solution to the energy crisis,” said Glen Cauffman, manager of farms and facilities at Penn State’s College of Agricultural Science.

This year’s butter masterpiece by Jim Victor, of Conshohocken, is the largest created in the 17 years the butter sculptures have been on display at the Farm Show, said Jessica Pomraning, public relations manager of the Mid-Atlantic Dairy Association, a sponsors of the sculptures.

In the past, the butter had been thrown away.

“Rather than just discarding it,” she said, the association began donating it for alternative fuel. Last year’s Ben Franklin and Liberty Bell sculpture went to Philadelphia Fry-O-Diesel, Inc., which turned it into biodiesel.

Penn State is already a big biodiesel supporter already converting all of its regular diesel-powered equipment to run on a 20 percent biodiesel mix.

Biodiesel

Obama’s and Huckabee’s Biofuels Stands

John Davis

Well, it looks like Iowans have chosen Illinois Senator Barack Obama and former Arkansas Governor Mike Huckabee as the top vote-getters in the Democratic and Republican caucuses in the Hawkeye State.

While there’s still a lot of election left to go with all of the rest of the country’s primaries and caucuses still up for grabs, Iowa is many times seen as a bellwether for the presidential contest. With that in mind, I’d like to draw your attention to Obama’s and Huckabee’s renewable energy stances from their campaign web sites.

From Obama:

obama.jpgSupport Next Generation Biofuels

* Deploy Cellulosic Ethanol: Obama will invest federal resources, including tax incentives, cash prizes and government contracts into developing the most promising technologies with the goal of getting the first two billion gallons of cellulosic ethanol into the system by 2013.
* Expand Locally-Owned Biofuel Refineries: Less than 10 percent of new ethanol production today is from farmer-owned refineries. New ethanol refineries help jumpstart rural economies. Obama will create a number of incentives for local communities to invest in their biofuels refineries.
* Establish a National Low Carbon Fuel Standard: Barack Obama will establish a National Low Carbon Fuel Standard to speed the introduction of low-carbon non-petroleum fuels. The standard requires fuels suppliers to reduce the carbon their fuel emits by ten percent by 2020.
* Increase Renewable Fuel Standard: Obama will require 36 billion gallons of renewable fuels to be included in the fuel supply by 2022 and will increase that to at least 60 billion gallons of advanced biofuels like cellulosic ethanol by 2030.

And from Huckabee:

huckabee1.jpgWe have to explore, we have to conserve, and we have to pursue all avenues of alternative energy: nuclear, wind, solar, hydrogen, clean coal, biodiesel, and biomass. Some will come from our farms and some will come from our laboratories. Dwindling supplies and increasing demand from newly-industrialized countries of fossil fuels are driving up prices. These price increases will facilitate innovation and the opportunity for independence. We will remove red tape that slows innovation. We will set aside a federal research and development budget that will be matched by the private sector to seek the best new products in alternative fuels. Our free market will sort out what makes the most sense economically and will reward consumer preferences.

Let me reiterate, it’s still early in the election cycle. In addition, not everyone who has won Iowa has gone on to win the presidency, including Bill Clinton in 1992 (remember the Comeback Kid in New Hampshire). Plus, no one is exactly running away with the race at this point as the winners garnered only about a third of the caucus goers. What I am doing is encouraging each of you to check out all of the candidates and see where they stand on renewable fuels. Then, make sure you vote for who you think is best for all of our futures.

Biodiesel, Ethanol, News

Imperium Cancels IPO Plans

John Davis

imperium-logo.gifThe biggest biodiesel producer on the U.S. West Coast has withdrawn a plan to have an initial public offering (IPO) that could have raised more than $345 million for several biodiesel plants across the country.

This story from Reuters says officials with biodiesel giant, Imperium Renewables out of Seattle, Washington, has filed with the Securities and Exchange Commission to withdraw the IPO:

“Given the current market conditions, our board has determined that it is not the right time to pursue a public offering,” John Plaza, Imperium’s founder, president and interim CEO, said in a release.

Plaza did not elaborate on market conditions. Prices for soy, one of the main sources of biodiesel, have shot to more than 30-year highs recently on growing global demand for food and fuel from alternative sources.

Imperium had filed with the U.S. Securities and Exchange Commission in May 2007 to raise as much as $345 million from its IPO.

Imperium has been having its share of difficulties lately including a change in leadership at the company with CEO Martin Tobias leaving in late December (see my Dec. 27th post).

Biodiesel

New Ethanol Book

Cindy Zimmerman

Ethanol BookTwo brothers with plant and environmental science backgrounds have just released a new book about the “past, present, and future of ethanol fuel.”

“Sustainable Ethanol,” written by Jeffery and Adrian Goettemoeller, attempts clear up myths and misconceptions about fuel ethanol. They tackle topics such as ethanol’s fuel economy, energy replacement ratio, transportation issues and food versus fuel arguments.

It explores the technologies making ethanol better for our environment and economy. It will help you decide for yourself whether ethanol and other biofuels can be part of the energy solution.

The book is available from Barnes and Nobel or Amazon.com, or from the authors’ blogspot.

Ethanol, News

OJ and Ethanol

Cindy Zimmerman

Xethanol Xethanol Corporation is looking for a grant from the state of Florida to make ethanol from citrus waste.

According to a company release, Xethanol subsidiary Southeast Biofuels LLC has filed a grant application with the Florida Department of Agriculture and Consumer Services to expand the company’s work on converting waste to energy, using citrus waste as the raw material and converting it into ethanol.

Xethanol intends to build a demonstration plant for converting citrus peel waste into ethanol. The company is negotiating an agreement to locate the plant at an existing citrus facility in Florida owned by one of the largest citrus processors in the state. The planned cost for the two-year build-out of the demonstration plant is approximately $6,000,000, and Southeast Biofuels is seeking a $500,000 grant.

Ethanol, News

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