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

Happy ReNEWable Fuels Year

Cindy Zimmerman

e-podcast The Energy Independence and Security Act of 2007 will get the new year underway with a burst of renewable fuels.

The bill, signed by President Bush on December 19, includes an expanded Renewable Fuels Standard that requires significant development of other feedstocks to produce ethanol.

This edition of “Fill up, Feel Good” features comments by President George W. Bush, EPIC president Tom Branhan, and RFA president Bob Dinneen.

Fill Up Feel Good 12-31-07 4:30

The Fill Up, Feel Good theme music is “Tribute to Joe Satriani” by Alan Renkl, thanks to the Podsafe Music Network.

“Fill up, Feel Good” is sponsored by the Ethanol Promotion and Information Council.

Audio, Energy, EPIC, Ethanol, Fill Up Feel Good, RFA

Brazil Putting in Biodiesel Mandate

John Davis

The new year will mark a new requirement for all diesel fuel sold in Brazil: it must contain at least two percent biodiesel.

Brazil is already a world leader in ethanol production, and this article from The Canadian Press says the new requirement will help grow the biodiesel industry in the country as well:

hubner.jpg“The great advantage is for the country to have an alternative fuel that helps in the reduction of carbon gas emissions, that reduces pollution,” Mines and Energy Minister Nelson Hubner said at a press conference in Brasilia, the country’s capital.

All filling stations will be required to offer diesel containing two per cent vegetable oil starting Tuesday, Huber said. He expressed confidence there will be enough biodiesel available to meet the demand, but acknowledged some potential delivery problems at first in remote areas of the country.

Some 800 million litres (about 200 million gallons) of biodiesel will be needed annually to meet the two per cent demand, but Brazil already has the capacity to produce more than three times that amount, he said.

Fuel distributors said they will be prepared.

Officials say it’s taken some major upgrades to the infrastructure to be able to make this feasible, but it will be ready for the new year.

Biodiesel

NBB: Biodiesel at Less than 25% Production Capacity

John Davis

nbb-logo.jpgThe National Biodiesel Board says the U.S. is not making near what it could be when it comes to biodiesel.

This story on Wisconsin Ag Connection says high soybean oil prices are keeping America from producing an NBB-projected amount of 1.85 billion gallons a year… but that could soon change:

Soybean oil prices in the mid- to high 40-cent range is one of the biggest contributors to tight margins and biodiesel production cutbacks. Recent passage of the Energy Independence and Security Act of 2007, however, expands the Renewable Fuels Standard (RFS), which will require 500 million gallons of biodiesel to be used or blended in 2009.

In 2007, the United States produced 400 million gallons of biodiesel, or about 22 percent of production capacity. The year before, the industry had a production capacity of 580 million gallons and sold 250 million gallons, or 43 percent of capacity.

NBB officials do point out that many biodiesel plants project a much-higher capacity than what they are currently producing in order to make it easier to expand later on.

Biodiesel

U.S. Wind Energy to Grow by 15% per Year

John Davis

deutschebank1.jpgInternational Financier Deutsche Bank (based in Germany, of course) says U.S. wind energy production will grow by 15 percent a year until 2015.

This story in the Wyoming Business Report (Wyoming is one of those places where wind and wind turbines are in great supply) says the American, Indian, and Chinese wind power generation markets have become the three biggest worldwide:

In a research report released earlier this month, Deutsche Bank’s analysts say the wind energy industry is growing more attractive as an investment option. The report indicated that both entry-level investments and takeover activity are evidence of a greater interest being taken by traditional energy companies in wind energy — and a new wave of wind power industry consolidation could be beginning.

Deutsche Bank issued a “buy” rating on General Electric with a new target price of $44. GE Energy is one of the world’s largest wind turbine manufacturers.

Wind