Advanced Bioenergy Finances SD Operations

Cindy Zimmerman

Adv BioEAdvanced BioEnergy, LLC has announced that its wholly-owned subsidiary, Heartland Grain Fuels, L.P., has closed on a $118 million financing package for its South Dakota ethanol production facilities.

According to the company, the financing will be used to refinance Heartland Grain Fuels’ existing debt, complete construction of a 40 million gallons nameplate per year expansion facility at Heartland’s existing Aberdeen plant, and pay for operating costs at both the Aberdeen and Huron production facilities.

Advanced BioEnergy CEO Revis L. Stephenson III said, “We believe that this financing provides us with sufficient debt financing to complete construction of our 40 million gallon nameplate capacity per year Aberdeen expansion facility. Together with our third facility in Fairmont, Nebraska, which we expect will come on line in October of this year, and our existing operating facilities in Huron and Aberdeen, South Dakota, Advanced BioEnergy’s ethanol production capacity when fully operational will approach 200 million gallons per year.”

Ethanol, Facilities, News

Blencoe Throws Down Hydrogen Gauntlet

John Davis

hydrogendiscoveries.jpgGreg Blencoe, the CEO of Hydrogen Discoveries, Inc., an alternative energy research and development start-up company based in Oak Ridge, Tennessee, has issued a challenge to hydrogen energy skeptic Joseph Romm to debate the merits of hydrogen power.

Romm is the author of a book titled “The Hype About Hydrogen: Fact And Fiction In The Race To Save The Climate,” and on his blog, Blencoe is taking exception with six myths he says Romm is perpetuating:

blencoeromm.JPGMyth #1 – Hydrogen fuel cell vehicles are decades away because fuel cells are 50 times as expensive as they need to be

Reality – If they are mass produced, hydrogen fuel cell vehicles will be competitive with gasoline-powered internal combustion engine vehicles beginning in three or four years

Myth #2 – Hybrid vehicles are as efficient as fuel cell vehicles

Reality – Fuel cells are twice as efficient as internal combustion engines

Myth #3 – Plug-in hybrids are better than hydrogen fuel cell cars (for whatever reason)

Reality – Plug-in hybrid technology can be used in hydrogen fuel cell cars, so any benefits of plug-in hybrids will also be realized by hydrogen cars

Myth #4 – Hydrogen fuel is three times as expensive as it needs to be in order to be competitive

Reality – The cost of hydrogen will be $4 to $6 per kilogram, which is equivalent to gasoline at $2 to $3 per gallon, due to the efficiency of fuel cells

Myth #5 – Making hydrogen for use in cars is not a good use of renewable energy

Reality – There is more than enough renewable energy to produce both electricity for homes and businesses and hydrogen for cars

Myth #6 – The high cost of building a hydrogen infrastructure means hydrogen should not be pursued

Reality – The cost of building a hydrogen infrastructure will be high, but far less expensive than the costs that will have to be paid if the current path is maintained.

Blencoe admits he’s being a bit aggressive in his approach, but he says it’s too important to dismiss without proper debate. No word on whether Romm will agree to debate. You can read Blencoe’s challenge by clicking here.

Hydrogen

UL Announces E85 Pump Certification

Cindy Zimmerman

Underwriters Laboratories (UL) has announced the establishment of safety requirements for E85 fuel dispensing equipment and is now ready to start certification investigations, according to a UL news release.

The establishment of safety requirements follows the completion of UL’s comprehensive research program to investigate potential safety concerns associated with dispensing highly concentrated ethanol-blended fuels. The research included extensive gathering of technical data, field studies of existing E85 installations in the U.S. and Brazil, analysis of material compatibility for dispenser components, and a co-sponsored technical forum with the United States Department of Energy (DOE) that brought together 32 national experts from automobile and petroleum companies, ethanol producers, dispenser and component manufacturers, industry associations, government agencies and university researchers.

EPICThe Ethanol Promotion and Information Council (EPIC) welcomed the news, calling it “a major victory for the ethanol industry and efforts to expand availability of E85 and increase demand for this renewable fuel.”

EPIC Director of Operations Robert White says the announcement removes a major barrier to many companies that have been waiting to offer E85 at their fueling stations. “Pump equipment manufacturers are standing by at the ready and will submit their dispenser for approval very soon,” said White. “UL’s efforts to complete their evaluations and develop the safety requirements for E85 dispensing equipment in just under a year are tremendous, and this development will move the ethanol industry to the next plateau in helping improve air quality and reduce dependence on foreign fuels.”

Currently there are more than 1,300 E85 fueling stations open across the United States. With UL’s announcement, projections are that number will double in the coming year.

E85, EPIC, Ethanol, News

Agriculture’s Role in Cellulosic Ethanol Production

Chuck Zimmerman

Acting Secretary of Agriculture Chuck ConnerThe Cellulosic Ethanol Summit is underway in Washington, DC. It’s an interesting mix of people who want to learn more about how we’re going to build this new segment of the fuel ethanol industry.

On hand at lunch time was our Acting Secretary of Agriculture Chuck Conner. He addressed the group on the subject of what agriculture’s role is in building a national cellulosic industry. I caught up to him outside as he was leaving and asked him what his department is doing in this regard.

He says that USDA has several ongoing research projects involving enzymes and the plants that will be needed to use in the production of cellulosic ethanol. However, he says more needs to be done. That’s why the Administration has asked for $1 1/2 billion more in the proposed farm bill for new research in this area. He says the House has supported it and they’re hoping the Senate will too.

You can listen to my interview with Acting Secretary Conner here: [audio:http://www.zimmcomm.biz/ethanol/cellulosic-summit-07-conner.mp3]

Audio, Ethanol, Government, News

Volkswagon Sponsoring Dieselution Revolution

John Davis

Volkswagon Dieselution TourAn interactive Volkswagon trailer has hit the road, making its way across the country in a four-month campaign to highlight current environmental issues. The Volkswagon Dieselution Tour is using interactive exhibits to display advances in diesel engine technology, design and performance.

Volkswagen of America, Inc. is launching the Dieselution Tour, a mobile marketing exhibit, to educate the media and the public on advances in clean diesel technology and alternative fuels.

The Dieselution Tour is centered around a 53-foot-long, double-expandable semi-trailer with exhibits and interactive displays. Elements include an “Alt Fuel/ Alt Film video area; a Dieselab with a series of interactive and video displays; a Diesel Heritage section, illustrating Volkswagen’s diesel history and leadership; a Sustainability Station, involving an interactive quiz and a Carbon Footprint Calculator; a Beyond Diesel perspective featuring SunFuel; and a Motorsports display, outlining Volkswagen’s recent history and international success in racing diesel vehicles in events like the Baja 500, Pikes Peak, and the Dakar rally.Read More

Biodiesel, Car Makers, Promotion

Higher Petroleum Prices Helping Ag Commodity Prices

John Davis

High crude oil prices are prompting more soyoil to be bought… with the idea that soyoil would be turned into an alternative to all that foreign oil: domestically made biodiesel.

dowjones.gifThis Dow Jones Newswires story posted on the Missouri Ruralist web site breaks down the rise and what caused it:

November soybeans settled 10 1/4 cents higher at $9.87 and January soybeans ended 10 1/2 cents higher at $10.05 3/4. December soymeal settled $2.30 higher at $281.20. December soyoil finished 53 points higher at 40.06 cents a pound.

Sharply higher crude oil futures attracted speculative buyers in soyoil, which spilled over into soybeans, and when wet conditions causing harvest delays in the western Midwest were added, futures were firmly underpinned, said Brian Hoops, president of Midwest Market Solutions in Yankton, S.D.

Soy product futures ended higher, with soyoil the upside leader of the complex. Soyoil rallied, buoyed by spillover strength from sharply higher crude oil futures. The momentum from crude oil attracted speculative buyers, with optimistic outlooks for biodiesel encouraging speculative interest as well, analysts said.

Biodiesel

Biofuels Helping Fuel Cargill’s Profits

John Davis

cargill.jpgEthanol and biodiesel are making “modest” contributions to ag products giant Cargill’s profits… according to numbers released by the U.S.’s largest agricultural company.

This story in the Minneapolis Star-Tribune says the company reports fiscal first-quarter profit rose 83 percent as more soybeans and corn were processed and the company was able to successfully hedge higher grain costs:

Cargill benefited from soaring worldwide demand for soybeans, corn and other agricultural products, more than making up for surging commodity costs and volatile credit markets. Corn prices were 49 percent higher in the quarter than a year earlier, wheat was up 67 percent and soybeans rose 41 percent.

“Cargill was able to handle the volatility,” said Anil Passi, an analyst with Dominion Bond Rating Service in Toronto who follows Cargill’s $9.9 billion in bonds.

Of course, a lot of that increased demand comes from the fact that more corn and soybeans are going to biofuels, which make up about 5 percent of the company’s net income.

Biodiesel, Ethanol, News

Canada Building First Canola Biodiesel Plant

John Davis

canadianbioenergy.gifGround has broken on a 50-million-gallon-a-year canola biodiesel refinery northeast of Edmonton, Alberta… the first large-scale canola biodiesel plant in Canada.

This story on Canadian Press says the Canadian Bioenergy refinery will be built next door to a canola crushing facility… on the province’s refining and pipeline hub:

“We are building a state-of-the-art facility capable of producing a large quantity of clean, sustainable canola-based biodiesel to help meet the Canadian renewable fuel standard and U.S. demand for a superior cold weather, high-quality fuel,” said Canadian Bioenergy president Doug Hooper.

The plant fits in well with recent moves by Ottawa to financially encourage development of renewable fuels. But it also steps boldly into the ongoing debate over whether biofuels are better for the environment.

Scheduled to begin production by the middle of 2009, the plant will have an expected future capacity of 225 million litres of biodiesel per year. It will also be a key component to feeding Canada’s escalating demand for the fuel as new federal regulations call for two per cent renewable content in all diesel by 2012 – requiring about 800 million litres annually.

Officials estimate that about one million tonnes of canola will be needed to meet that two per cent biodiesel commitment.

Biodiesel

U.S. Consumers Support Renewable Fuels

John Davis

Clean Fuels Development Coalition Ask the American public about renewable fuels and odds are you’ll get two thumbs up. At least, that’s what a poll conducted by Harris Interactive found.

A new poll conducted by Harris Interactive(R) shows overwhelming American support for expanding renewable fuel options with nine in 10 U.S. adults (88 percent) agreeing the U.S. should pursue renewable energy sources.

The poll, commissioned by the Clean Fuels Development Coalition, concludes that 72 percent of adults believe that higher oil prices have had a substantial impact on the rising cost of food in recent months, compared to only 35 percent who believe ethanol production has had a significant impact on rising food prices.

The poll asked 2,199 U.S. adults about their attitudes regarding ethanol. Other results indicate that nearly eight in 10 adults (78 percent) believe usage of ethanol would lessen the country’s dependence on foreign oil.

Energy policy is at the forefront of national debate with pending energy legislation expected to hit congressional calendars this fall. The Senate- approved version of the energy bill contains a provision mandating the use of 36 billion gallons of ethanol by 2022.

Biodiesel, Ethanol, News

Biofuel to Hit the Skies

John Davis

Yahoo!NewsFrom the coverage we’ve provided on energy.agwired.com so far, I think it’s safe to say biofuels are continually gaining traction with ground transportation and machinery. So, it seems quite natural that air travel would be the next frontier for biofuels. Yahoo!News reports that Virgin Group CEO, Richard Branson plans to fuel one of his jets with biofuels in 2008. Here’s a small blurb from the Yahoo!News article:

Virgin will be conducting a test jet flight on renewable fuels. “Early next year we will fly one of our 747s without passengers with one of the fuels that we have developed,” Branson told the annual conference.

Virgin is developing biofuels for aircraft in conjunction with Boeing Co and engine-maker GE Aviation, a unit of General Electric Co. Previously, Branson had said the company would test the fuel sometime next year and that some people had said it would be late in the year.

But Virgin isn’t the only company seeking “cleaner” air travel. The article mentions that Branson is trying to beat Air New Zealand’s attempt to pilot a jet with biofuels.

Biodiesel, News