Indiana Opens 88 Million Gallon Biodiesel Plant

John Davis

Louis Dreyfus Claypool
One of the nation’s largest biodiesel plants is up and running today as Louis Dreyfus Commodities opened the doors of its 88-million-gallon-a-year biodiesel plant near Claypool, Indiana (pictured above).

The opening gained the praise of the company owner, the state’s governor, and of course, the National Biodiesel Board:

Governor Mitch Daniels and Robert Louis-Dreyfus, owner of Louis Dreyfus Commodities, addressed the attendees. “Claypool is a strategic centerpiece for our company’s future,” said Louis-Dreyfus. “This plant affirms our century-old practice as a market innovator. We are grateful to be a partner with the state of Indiana and the local community in this new venture.”

NBB logo“Louis Dreyfus is helping to meet what we hope will be America’s continued growing demand for renewable, cleaner-burning biodiesel,” said Larry Schafer, NBB political senior advisor. Schafer attended the grand opening event today. “It is adding valuable refining capacity to our nation’s fuel supply and replacing foreign oil with environmentally friendly, domestically produced fuels.”

To give you an idea of just how big the plant is, the average biodiesel plant produces only about 9.5 million gallons a year. This is about NINE TIMES that big!

The opening comes during an unprecedented amount of growth for the biodiesel industry in America. The National Biodiesel Board says overall national production of biodiesel has gone from about 25 million gallons in 2005 to an expected more than 300 million gallons by the end of this year.

Biodiesel

Ethanol Plant Investments Shifting Geography

Cindy Zimmerman

NE EthanolInvestments in ethanol plants are growing across the nation to areas with larger populations, according to a new report, “U.S. Ethanol,” by Rabobank.

Grainnet reports
by the first quarter of 2009, more than 200 ethanol plants are expected to be in production, which represents a capacity increase of more than 91 percent during a three-year time frame.

Much of this growth in ethanol production is largely driven by demand created by government support.

In fact, “government support for ethanol production, and increasing demand for ethanol in all states, will continue to foster growth of destination plants,” said Jennifer Cole, Food & Agribusiness Research Associate.

The first ethanol plants – in the Corn Belt – are often referred to as origination plants, whereas plants outside the Corn Belt are often referred to as destination plants.

Investors are finding that the traditional areas for ethanol plants, in the Corn Belt, are becoming saturated, and are looking elsewhere.

“One of the main advantages to building plants outside of the Corn Belt is the ability to ship ethanol shorter distances,” said Cole.

“It is more practical and less costly to transport corn compared to ethanol.”

By moving the final product closer to consumers, investors are able to keep costs in check.

Because ethanol is a highly flammable substance it incurs higher insurance rates than shipping raw corn.

So the focus of investments in ethanol plants has shifted from corn producing states – Iowa, Illinois, Nebraska and Minnesota – to areas such as New York, Texas, Oregon, Arizona and Washington.

Ethanol, News

First Hydrogen Fuel Cell Generator Goes in California

John Davis

Fujitsu GreenFujitsu is the first high-tech company in California to put in its own hydrogen power plant. The company says it provides clean, efficient power for its Sunnyvale, CA data center and other operations.

This article on the InfoWorld.com web site has more details:

Tetsuo UranoThe fuel cell will generate 200 kilowatts of clean energy while surplus heat from the fuel cell will be captured to provide hot water for the facility.

Fujitsu reports that the hydrogen fuel cell “will provide 50 percent of the power needed to cool the Fujitsu Sunnyvale campus datacenter and labs.”

“With a payback of about three and a half years and a lifespan of about 15 years, hydrogen power is an excellent investment for the company,” says Tetsuo Urano, head of operations at Fujitsu America.

The article goes on to say that the fuel cell is meeting California’s strict air emissions requirements and produces 35 percent less carbon dioxide for each megawatt hour produced than an average fossil-fuel plant. And the natural gas-powered plant is producing about two tons each year less of nitrous oxides… about the equivialnt of taking 100 cars off the road.

Hydrogen

Restaurant Grease Becoming “Hot” Item

John Davis

Just when you thought thieves had run out of new things to steal, now the old grease from restaurants has become the latest pilferable item.

Officials are blaming the home-made biodiesel craze for making criminals out of people who just might not have realized that’s it’s wrong to take that used cooking oil. Some probably good-intentioned folks have been taking the old oil to make new, green fuel.

This article in the Cincinnati Enquirer says the problem has gotten so bad that companies such as Griffin Industries, Inc. – a grease, animal by-product waste, and grocery scraps recycling company – has had to hire folks such as former cop Larry Findley to stop the crime:

Grease thieves will often sneak behind restaurants at night, break the locks on containers and spill grease everywhere, said Findley, who has worked for Griffin Industries for 16 years. Thieves will often make off with 1,500 pounds of grease in one haul and sell it for between 10 and 15 cents a pound, Findley said.

A new type of grease thief has emerged in recent years. Average people concerned more about fuel efficiency than the street value of grease have been caught pilfering grease traps, Findley said.

Biodiesel conversion kits have encouraged people to steal grease to run their car on it, he said. Many think they are entitled to the grease.

“This is a recent phenomenon. These people are the worst kind of thief,” Findley said. “They don’t know they are stealing. The Internet is replete with how to make this stuff. They have no idea what they are doing.”

And officials say these thefts are costing the restaurants as the criminals are trying to take as much grease as fast as they can and end up spilling a lot of it on the ground in the process… creating an environmental hazard.

So the next time you think you see the Hamburgler behind that fast-food chain, it might just be an eco-thief. C’mon folks, let’s be honest about how we get our feedstocks, please!

Biodiesel

Brewing Biodiesel at Room Temperature

John Davis

India Institute of Chemical TechnologyScientists in India are experimenting with a method that could make biodiesel production a whole lot more efficient.

Instead of heating sunflower oil and methanol for several hours, researchers at the Indian Institute of Chemical Technology are running the mixture over a bed of fungal spores. This article on the Wired Science web site says an enzyme produced by the fungi turns it into biodiesel… without spending energy to produce the fuel:

Typically, biodiesel is made by mixing methanol with lye and vegetable oil and then heating the brew for several hours. This links the methanol to the oils to produce energetic called esters. Unfortunately, heating the mixture is a huge waste of energy, and a major selling point of alternative fuels is efficiency. An enzyme called lipase can link link oil to methanol without any extra heating, but the pure protein is expensive.

Instead of purifying the protein to run this process, the scientists found the fungus Metarhizium anisopliae produced it on its own. So, they’ve turned that fungus into easily used pellets and are now well on the way to producing energy without spending energy… and that’s the whole idea, right?

Biodiesel

Nebraska Ethanol Tops a Billion Gallons

Cindy Zimmerman

NE EthanolThe recent opening of the U.S. BioEnergy ethanol plant in Ord pushed total ethanol production capacity for the state of Nebraska over the one billion gallons per year mark, according to the Nebraska Ethanol Board.

Todd Sneller, administrator of the Board says, “With 16 ethanol plants producing a billion gallons a year, Nebraska is taking its place as a leader in energy independence and a leader in economic growth which benefits the whole state.”

As more plants commence production, Nebraskans have access to a greater supply of ethanol. With an expanded supply, ethanol prices drop and the renewable energy source becomes even more affordable as an alternative to gasoline, Sneller said. “ Nebraska is in a position where the state could meet 100 percent of its transportation fuel needs with ethanol production.”

Ethanol, News

Sweet Export

Cindy Zimmerman

maple energyDallas-based Maple Energy is planning to plant 20,000 acres of sugar cane in Peru to produce ethanol for export to the United States and Europe.

According to this story from the Houston Chronicle, Maple plans to begin growing sugar cane on the acreage in northern Peru next year with a goal of producing 30 million gallons of ethanol a year.

Rex Canon, Maple’s CEO, says the project includes constructing a pipeline off the coast to a facility where tankers will load the ethanol for export. Canon said Peru’s northern coast offers among the best conditions in the world for producing sugar cane for ethanol, with hot, dry weather during the day and cool temperatures at night, year-round.

Ethanol, International, News

An Escape for Missouri Governor

Cindy Zimmerman

Blunt CarMissouri Governor Matt Blunt has joined the ranks of the chosen few who are test driving the Ford Escape Hybrid. Ford has produced just 20 of its hybrid-electric, flex-fuel Escapes that can run on E85 fuel and Ford Manager Tony Reinhart made the presentation to Blunt last week at the Missouri State Fair. Blunt says the specially-equipped Escape will help promote his Missouri Renewable Fuel Standard, which outlines that all fuel sold in the state will have to contain 10% percent ethanol by January of 2008. The Governor pointed out that Missouri is the fourth state to have such a requirement. The hybrid, flex-fuel also meets Blunt’s executive order that requires at least 70% of new vehicles purchased by the state to be flex-fuel vehicles.

Listen to Tony Reinhart, Governor Blunt and Missouri Corn Grower’s Association Education Director Gary Marshall here during the presentation:

[audio:http://www.zimmcomm.biz/audio/blunteth.mp3]
E85, Ethanol, News

VeraSun Rising

Cindy Zimmerman

VeraSun ObamaIllinois Senator and Democratic presidential hopeful Barack Obama made a stop in Charles City on his five day tour of Iowa last week to help cut the ribbon at the grand opening of the third ethanol plant for VeraSun Energy.

Obama says ethanol “ultimately helps our national security because right now we’re sending billions of dollars to some of the most hostile nations on earth, and makes it more difficult for us to shape a foreign policy that is intelligent and is creating security for the long term.”

VeraSun RibbonOther dignitaries at the event included National Corn Growers Association CEO Rick Tolman, Renewable Fuels Association president Bob Dinneen, Dr. Mary Beth Stanek with General Motors; Don Endres, VeraSun Energy Corp. chairman, CEO and president; and Mike Adams, host of the national farm program AgriTalk.

To see more pictures from the grand opening, including the ones on this post, go to the AgriTalk website.

In other VeraSun news, the company announced the acquisition with ASAlliances Biofuels, LLC for three ethanol plants with a combined annual production capacity of approximately 330 million gallons per year. The three facilities are each expected to operate at 110MMGY and are located in Linden, Indiana; Albion, Nebraska; and Bloomingburg, Ohio – only the Linden facility is currently open.

This brings VeraSun’s total production capacity to 450 million gallons per year with four facilities in operation and another 550 million gallons of capacity under construction at five different sites. In addition to the Linden facility, VeraSun has operating plants in Aurora, South Dakota and Fort Dodge and Charles City, Iowa. Construction is also underway at Hartley, Iowa; Welcome, Minnesota; and Reynolds, Indiana.

Ethanol, Facilities, News, RFA

Sugar Could Sweeten Ethanol Portion of Farm Bill

John Davis

U.S. CapitolThe U.S. House’s version of the Farm Bill includes a provision where the federal government buys surplus sugar and sells it to ethanol producers to be used with corn.

The program is designed to be a buffer against a North American Free Trade Agreement provision that will let Mexico export an unlimited amount of sugar to the U.S. starting in 2008. That could easily lead to a glut of sugar, and depress the prices… kicking in automatic U.S. government purchases of sugar to prop up prices. This story in the International Herald Tribune says that subsidy could cost taxpayers $1.3 billion over 10 years:

Rep. Collin PetersonThe chairman of the House Agriculture Committee, Minnesota Democrat Collin Peterson, inserted the sugar-to-ethanol provision in the farm bill. Minnesota is the nation’s largest producer of sugar beets, and Peterson represents the state’s sugar beet-growing Red River Valley. U.S. sugar is made from beets in some Northern and Western states, and cane in a few Southern states and Hawaii.

The sugar-to-ethanol program would only kick in when imports lead to an oversupply of sugar in the U.S.

“This a program that blinks on and off,” Peterson said. “It would only be used if needed.” Peterson also included a slight increase in the guaranteed government minimum price for sugar growers, or loan rate, from 18 cents to 18.5 cents a pound.

A similar program in 2001 didn’t work very as the U.S. government tried to sell 100,000 tons of surplus sugar to ethanol producers but only sold about 10,000 tons at a loss. But experts say the market is different than in 2001 and could work out better.

Sen. Tom HarkinThe U.S. Senate is expected to take up the bill when it comes back in after the August recess. And this current provision has the endorsement of the chairman of the Senate Ag Committee, Sen. Tom Harkin (D-Iowa):

“We must continue to look for new sources to produce biofuels — sugar, cellulose, and others,” he said in a statement. “Increasing our renewable energy investments helps increase our energy security and keeps our country competitive.”

Ethanol, News