ACE Conference 2026

Growing E85 in Kansas

John Davis

Sue Schulte, Director of Communications for the Kansas Corn and Grain Sorghum Associations Good news if you’re a fuel retailer in Kansas. The state offers a 40 percent tax credit to retailers who invest in E85 fuel. Couple that with the 30 percent tax credit the federal government offers, and fuel retailers in Kansas can take advantage of a 70 percent return on their E85 investments. That’s one of the key points Sue Schulte, the Director of Communications of the Kansas Corn and Grain Sorghum Associations, drove home to attendees at today’s educational forum on E85 fuel. The forum was hosted by the Ethanol Promotion and Information Council to help direct local members of the ethanol industry in Kansas City on how to get online with E85.

Sue clued participants in on where the ethanol industry stands in Kansas, so producers and retailers could get a feel for what the state already has to offer and determine where and how the local industry can grow. Sue says there are 10 dry mill ethanol plants in operation in Kansas. These plants have a capacity to produce over 329 mill gallons of ethanol. Sue says that current Kansas production creates a market for over 116 million bushels of sorghum and corn. She adds that more expansion is on the way, with ethanol plants that are either under construction or nearing construction having projected production capabilities of about 330 more million gallons of ethanol each year. The state’s fuel industry is beginning to respond. Sue says just five filling stations offered ethanol in 2005. Now, there are 24 stations throughout the state that pump the alternative fuel.

I caught up with Sue and asked her about her thoughts on what today’s educational forum on E85 offered local industry members. You can listen to my interview with Sue here:

[audio:http://www.zimmcomm.biz/audio/Schulte_Sue.mp3]
Agribusiness, Audio, corn, Distribution, E85, Energy, EPIC, Ethanol, Facilities, News, Production, Promotion

Getting the facts on E85

John Davis

Ethan Taylor, E85 Coordinator for the Missouri Corn Growers Association talking with EPIC Alternative Blends Coordinator Michelle Gibilisco Missouri can boast 93 E85 filling stations that are either up and running or soon to open. Ethan Taylor, the E85 Coordinator for the Missouri Corn Growers Association says that each E85 filling station pumps about 300 gallons a day. That equates to 27,900 gallons of E85 fuel being sold each day in Missouri, or more than 10 million gallons sold each year. The Show-Me-State certainly has a jump start on the ethanol industry, but there’s obviously room for more growth.

That’s one of the reason’s why the Ethanol Promotion and Information Council sponsored an educational forum in Kansas City today to allow local ethanol industry members, or those interested in becoming involved in the industry, learn more about how they can grow ethanol, and, more specifically, how they can ramp up the production and sale of E85 fuel. During the forum, Ethan stressed that the biggest necessity for industry producers and retailers is to educate consumers on the truth about ethanol. He says much of the public is misinformed about how and when to run their vehicles on E85 fuel blends, how much mileage they’re getting compared to gasoline and how much money they’re spending to get from A to B.

Ethan reminds industry members that virtually any vehicle manufactured since 1980 can use an E10 blend of fuel. He says consumers do need a flex-fuel vehicle in order to use E85 fuel or any other fuel blend greater than 10 percent ethanol. When it comes to energy efficiency, Ethan explains that a gallon of ethanol has an energy content of about 72,000 BTU. When compared to gasoline’s energy content of about 115,000 BTU, that means consumers get about 28 percent less energy from burning E85. Ethan says that equates to about a 10 to 20 percent mileage loss when using E85. But, he says when you factor in the cost of E85 fuel – which typically runs 20 percent lower than the going rate for gasoline – at worst, consumers are spending the same amount of money. At best, they’re saving 10 percent on fuel.

For Ethan, spending the same amount of cash, or less, on a renewable fuel that’s domestically produced, that reduces emissions and that results in cleaner engines is a smart idea.

I spoke with Ethan about the importance of today’s educational forum on E85 and about how the Missouri Corn Growers Association is getting involved in the ethanol industry. You can listen to my interview with Ethan here:

[audio:http://www.zimmcomm.biz/audio/Taylor_Ethan.mp3]
Audio, E85, Energy, EPIC, Ethanol, Facilities, Flex Fuel Vehicles, News, Production

Consumer Group Urges Energy Action

Cindy Zimmerman

CFAA new report from the Consumer Federation of America (CFA) shows just how much energy costs have skyrocketed in recent years.

According to the report, household energy expenditures (home heating and gasoline) have nearly doubled in just the last five years, and are now 50 percent more than health care expenditures and 23 percent more than spending on food.

CFA also released a new poll revealing deep concern among consumers about the worsening energy situation and strong support for three key policies to begin addressing it, including higher passenger vehicle fuel economy standards, the purchase of renewable energy by electric utilities and increased production of biofuels.

The survey indicates that 84 percent of Americans support those three key policies contained in Congressional energy legislation, and 75 percent still support them even after hearing arguments from opponents of the legislation.

Energy, Ethanol, News

Driving an E85 Market in Kansas City

John Davis

EPIC forum on E85 fuelThere’s a growing market for E85 fuel blends in Kansas City and the Ethanol Promotion and Information Council wants to make sure local producers, ethanol retailers and flex-fuel vehicle car dealers are equipped with the infrastructure, knowledge and marketing tools they need to sell an E85 product. EPIC is sponsoring two educational forums about the high-grade alternative fuel today at the Holiday Inn and Suites in Overland Park. This morning, industry leaders came together to discuss and learn about promoting what EPIC calls “part of the solution for the future.” The forum is also meeting this afternoon.

E85, EPIC, Ethanol, Flex Fuel Vehicles, News, Production

Texas Wind Power for 2008

John Davis

Invenergy Wind LLCThe Stanton Wind Energy facility in Martin County, TX is winding down construction and estimates its facility will be fully operationally by early 2008.

Invenergy Wind LLC has announced the successful closing of construction and equity financing for its 120 MW Stanton Wind Energy Center (“Stanton”) in Martin County, Texas. The debt facility was underwritten by lead arranger Dexia Credit Local and co-arranger Natixis. The equity will be provided by GE Energy Financial Services.

Stanton will utilize 80 General Electric 1.5MW SLE wind turbines and construction is being managed by DH Blattner & Sons. Full commercial operation of the wind farm is scheduled for early 2008. The project interconnects with Oncor, the transmission affiliate of TXU, and all power will be sold into the ERCOT market. Energy price risk is hedged through a long-term agreement with Credit Suisse Energy. The wind farm will be owned and operated by Invenergy.

Invenergy acquired the Stanton Wind Energy Facility from Wind Tex Energy, L.P.

Energy, Facilities, News, Wind

Biofuels Research at Arizona State

John Davis

Science Foundation ArizonaThe Biodesign Institute at Arizona State University is launching a Renewable Biofuel Research Initiative. Science Foundation Arizona and energy company BP are funding the initiative meant to propel the development of a renewable source of biofuel.

The research effort focuses on using a specially optimized photosynthetic bacterium to produce biodiesel, a sustainable high-energy fuel that can be used in conventional engines.

Biodesign Institute at Arizona State UniversityThe use of renewable, photosynthetic bacteria in the production of biofuel eliminates the need for costly and complex processing. In addition, the large-scale microbial cultivation, using only solar energy and an environmentally controlled production facility, can be set up on arid land.

BPThe renewable technology holds significant promise, with an estimated high biomass-to-fuel yield. Furthermore, because the bacteria are dependent upon carbon dioxide for growth, a more environmentally friendly and potentially carbon neutral energy source is feasible. The small footprint needed for bacterial biofuel production allows the technology to be placed adjacent to power generating stations and the utilization of flue gas as a carbon source.

The Renewable Biofuel Research Initiative is part of a series of Strategic Research Group awards being offered by the Science Foundation Arizona.

Biodiesel, E85, Energy, Ethanol, News, Research, Science

EPA Issues Biodiesel Guidance

John Davis

epaseal.gifThe Environmental Protection Agency has issued its guidance to biodiesel producers.

Biodiesel Magazine reports that the document, named “Guidance for Biodiesel Producers and Biodiesel Blenders/Users,” addresses biodiesel quality, harmonization of standards, and enforcement activities.

“EPA also plans to increase enforcement efforts to ensure that biodiesel producers are complying with EPA’s standards, in particular ensuring that all biodiesel meets ASTM D6751,” the agency states. “For biodiesel registered since 2002, any biodiesel that does not meet the version of ASTM D6751 in effect at the time of registration will be considered an unregistered fuel subject to the penalty provisions in 40 CFR 79.8 (civil penalties of up to $32,500 per day per violation). … EPA regulations … also provide authority to EPA inspectors … to enter the premises of any fuel manufacturer, importer, carrier or distributor and make inspections, take samples, obtain information and records, and conduct test to determine compliance…”

The article goes on to say the document also includes some controversy as it states emissions results from its 2002 study, that indicated slightly higher levels of NOx emissions.

To read the full document, click here.

Biodiesel

Iowa Soybean Growers Call for Biodiesel Incentives-First Approach

John Davis

isoylogo.JPGThe Iowa Soybean Association is calling on Iowa lawmakers to take an incentives-first approach to biodiesel policy in the upcoming legislative session.

This story on Grainnet.com says they’re suggesting legislators consider some market-driven strategies:

Highlights of this plan include:

• an increase in the current retail tax credit program,

• creation of a “bulk sales” incentive,

• new infrastructure support options through the Renewable Fuels Infrastructure Board,

• subsidies to existing biodiesel production facilities, and

• increased biodiesel usage by state fleets.

“We think this is a balanced, market-driven approach to biodiesel policy,” says Curt Sindergard, ISA president and a soybean farmer near Rolfe, Iowa.

While pushing for the incentives, the association is also rejecting any state mandates for biodiesel use (although federal mandates are OK). Officials admit that they’re getting an early start, but the see some serious issues with feedstock costs.

Biodiesel

Georgia Considers Ethanol Blend Changes

Cindy Zimmerman

Tommy IrvinGeorgia Commissioner of Agriculture Tommy Irvin is holding a couple of town hall meetings later this month to listen to comments regarding updating Georgia’s fuel standards for ethanol blends.

A recent article in Florida Today noted that state officials in Georgia and other Southeastern states, including Florida, are moving to alter fuel-quality standards that have discouraged refiners from adding ethanol to gasoline sold in the region.

Agriculture departments typically set the gasoline rules, and most of them in the Southeast — including in Georgia, North Carolina and Tennessee — are taking steps to ease their rules.

Standards can be relaxed without harming engine performance, officials say, and adding ethanol to gasoline could save motorists money.

A gallon of ethanol is about 40 to 45 cents cheaper than a gallon of gasoline in the region, which translates to several pennies cheaper at the pump for a typical gasoline-ethanol blend.

“That’s our goal. Give them a quality product, save a few dollars and be patriotic,” said Tommy Irvin, Georgia’s agriculture commissioner.

Georgia’s town hall meetings on the issue are scheduled for November 27 in Atlanta and November 29 in Tifton.

Ethanol, Government, News

Ag Secretary Nominee Has Biofuels Credentials

Cindy Zimmerman

Schafer BushIn his nomination of former North Dakota governor Ed Schafer as Secretary of Agriculture on Wednesday, President Bush noted his support of domestic fuel.

“Ed Schafer is the right choice to fill this post. He was a leader on agricultural issues during his eight years as the governor of North Dakota,” Bush said. “He oversaw the development of the state’s agricultural biofuels industry. He helped families recover from natural disasters — including drought, fires and floods. And he pioneered innovative programs to increase economic opportunity in rural communities.”

Schafer served as Governor of North Dakota from 1992 to 2000. He is nominated to replace Mike Johanns who resigned from the position last month to run for the U.S. Senate in Nebraska.

Ethanol, Government, News