Ethanol Plants Could Make Biodiesel

John Davis

Ethanol refiners are looking at ways of getting more products out of the raw ingredients they are using, and one of those new products could be biodiesel.

Normally, corn is used to make ethanol and soybeans are used in biodiesel. But this article on the Truth About Trade & Technology web site says many ethanol plants are looking at changing their operations to extract the corn oil during the ethanol production process:

This would allow corn oil to be used for biodiesel production and change the nutritional value of the distillers’ grains (DDGs) produced by ethanol plants.

There are two ways to extract corn oil to make biodiesel.

Jeff Kazin, general manager of extraction technology at Renessen, says his company is working on recovering the corn oil before it heads to fermentation.

Renessen is joint venture of Monsanto and Cargill. It operates a demonstration plant near the Cargill plant in Eddyville.

Kazin says they are able to take about 70 percent of the corn oil out of the kernel.

About 4 percent of a kernel’s weight is oil. Therefore, a bushel of corn would have about 2.24 pounds of corn oil. With a 70 percent retention rate, Renessen is getting 1.5 lbs./bu. of oil per bushel.

“That is food-grade corn oil,” Kazin says.

He says that means the grain is high quality. The corn oil potentially could be sold at the same price — about 35 cents/lb. — as soybean oil is being trade at the Chicago Board of Trade.

Meanwhile, researchers at VeraSun are looking at getting the corn oil from the distillers grain after the ethanol is made. In fact, the company is already considering a 30-million-gallon-a-year biodiesel plant to refine that oil into biodiesel. GS CleanTech Corp. is already extracting corn oil at its Little Sioux Corn Processors ethanol plant in Marcus.

Biodiesel, Ethanol, News

Freedom Fuels Making Freedom Fuel

John Davis

Freedom FuelsAptly named Freedom Fuels, LLC has opened a new biodiesel plant near Mason City, Iowa (see picture from the Freedom Fuels web site on the right).

This story on Grainnet.com says Freedom Fuels will produce about 30 million gallons of biodiesel a year:

“From the very first batch, the biodiesel exceeded specifications for quality,” said Brian Stork of Core Ventures Renewable Fuels and the General Manager of the plant.

“We are proud of our team and the efforts they have taken to ensure the investors a quality product from the first batch.

“Since the plant started, all of the biodiesel that has been produced has met specifications.”

This brings the number of biodiesel refineries in Iowa to 11 producing 200 million gallons a year. Three more capable of producing 120 million gallons are under construction. Iowa also has 28 ethanol refineries putting out nearly 1.9 billion gallons annually with another 19 ethanol plants under construction or expansion that will add more than 1.4 billion gallons each year.

Biodiesel

Ethanol Making OPEC Re-think Business

John Davis

NEVC logoThe Organization of the Petroleum Exporting Countries… better known as OPEC… is starting to feel the heat of the increased use of biofuels. And the National Ethanol Vehicle Coalition is asking you help keep them on the ropes.

In a release sent to Domestic Fuel, the NEVC outlined what OPEC is saying and how the NEVC wants you to get involved:

The European Union and nations around the world are looking at biofuels, made from plant and animal matter, to boost energy security, reduce greenhouse gas emissions and open new markets for farmers.

“We have great concerns about this … about policies which discriminate against oil,” Fuad Siala, alternative energy sources analyst at the Organization of the Petroleum Exporting Countries, said at a Hart energy conference in Brussels.

“We have legitimate concerns to revisit our investment plans,” he said.

The NEVC says you can help by talking to your U.S. Senator about how E-85 will help this country shake the yoke of foreign oil:

1. Send an email message to your Senators. Click here, edit the sample letter we have written for you, fill in your contact information, then click “Send My Message!”

2. Call your Senators. Express your support for E85 by calling the Senate switchboard at (202) 224-3121 or by looking up the number for your Senators’ offices by clicking here. Emphasize the following points with the staffer:

* With gasoline prices so high, promoting E85 will save consumers money.
* Using domestically-produced E85 reduces our dependence on foreign oil and helps the U.S. economy.

3. Tell a friend. Forward this email to your friends, colleagues, and others that have an interest in promoting E85 and ask that they too send a note to their Senators. The success of our campaign depends on getting as many people as possible to contact their Senators!

Ethanol, News

RFA Praises Proposed Energy Bill

John Davis

As I reported earlier, there’s a lot of contention over the current energy bill being debated in the U.S. Senate as different factions try to get federal dollars, incentives, and requirements that will help their renewable (and, of course, non-renewable) energy industries.

RFA logoBut one group that is pleased is the Renewable Fuels Association. In a statement e-mailed to energy.agwired.com, the group’s President Bob Dinneen praises the legislation, especially the Renewable Fuels Standard (RFS) of 36 billion gallons of renewable fuels, the majority of which must be the next generation such as cellulosic ethanol:

RFA President Bob Dinneen“Low carbon renewable fuels like ethanol are providing our nation a way forward to decreasing our dependence on foreign oil, reducing greenhouse gas emissions and creating new jobs and real economic opportunity. The bill Majority Leader Reid has brought to the floor of the Senate strikes the right balance between building on the progress the U.S. ethanol industry has achieved and providing the incentives necessary to realize the full potential of the industry in the future.

“This bill could be to next generation cellulosic ethanol production what the 2005 energy bill was to grain-based ethanol. To achieve the ambitious goals the American people are calling for, it will require the production of ethanol from all available feedstocks, including corn, corn stover, switchgrass, wood chips and other cellulosic materials. This bill strikes the right chord by requiring that 21 billion of the 36 billion gallon requirement be met by cellulosic ethanol production.

“Such an investment in our nation’s energy future promises to spur the creation of new, good paying jobs all across the country as new capital – and more importantly intellectual capital – is invested in renewable fuels production. In 2006 alone, the U.S. ethanol industry supported the creation of 160,000 new jobs while producing just 5 billion gallons of ethanol. At levels seven times that volume, ethanol production offers real economic opportunity fueled by American hard work and ingenuity, that will provide much-needed economic vitality to town and cities all across the country.

“The Renewable Fuels Association and U.S. ethanol industry believe this bill takes the right steps toward a more stable, more sustainable energy future for the generations to come.”

Ethanol, Government, Legislation, News

Tractor Race Competition Video

Chuck Zimmerman

Michael Peterson, Joe Jobe and FFA'ersThe CEO of the National Biodiesel Board is Joe Jobe. He was fired up to compete in the Michael Peterson/New Holland Celebrity Tractor Race on Sunday. He’s pictured here on top of the tractor with Michael Peterson and all the FFA students who helped out at the event.

Unfortunately Joe didn’t win but he had a good competitive time. You can watch his efforts on this YouTube video.

Biodiesel, Video

E is Indy

Cindy Zimmerman

e-podcast The slogan for the Indy Racing League is “I am Indy,” and that’s especially true for ethanol producers who are proud to be a part of this great sport.

This month’s “Fill up, Feel Good” features comments from Tom Branhan of Glacial Lakes Energy, Don Endres of VeraSun Energy, Todd Lucey of Endress+Hauser, Team Ethanol car driver Jeff Simmons, and the widow of the first Team Ethanol car driver.

The “Fill up, Feel Good” podcast is available to download by subscription (see our sidebar link)
or you can listen to it by clicking here (5:30 MP3 File): [audio:http://www.podtrac.com/pts/redirect.mp3?http://www.zimmcomm.biz/epic/epic-podcast-6-15-07.mp3]

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, EPIC, Ethanol, Fill Up Feel Good, Indy Racing, News, Racing

Blame Energy Prices for Higher Food Costs

Cindy Zimmerman

According to a new analysis of food, energy and corn prices conducted by John Urbanchuk of LECG, LLC, “rising energy prices had a more significant impact on food prices than did corn.” In fact, rising energy prices have twice the impact on the Consumer Price Index (CPI) for food than does the price of corn, according to the report.

LECG“Energy costs have a much greater impact on consumer food costs as they impact every single food product on the shelf,” said Urbanchuk. “Energy is required to produce, process, package and ship each food item. Conversely, corn prices impact just a small segment of the food market as not all products rely on corn for production. While it may be more sensational to lay the blame for rising food costs on corn prices, the facts don’t support that conclusion. By a factor of two-to-one, energy prices are the chief factor determining what American families pay at the grocery store.”

RFAThe Renewable Fuels Association held a press conference to announce the results of the study. “Critics of ethanol, including those in the animal feeding and oil industries, are engaging in baseless scare tactics to convince Americans that ethanol production will irreversibly increase their grocery bills,” said RFA president Bob Dinneen. “Ultimately, the market will adjust and all those in the food, fuel and fiber industry will be able to prosper.”

NCGAMuch of the debate has been centered on the notion that the U.S. will not be able to produce enough corn to satisfy all markets, creating shortages and intensifying competition that will continuously drive the price of corn higher. However, industry officials say advancements in seed, farming and ethanol technologies are allowing American farmers to continue feeding the world while helping to fuel our nation.

“There is no conflict between food and fuel—we can produce both,” said Ken McCauley, president of the National Corn Growers Association.

Listen to press conference here: [audio:http://www.zimmcomm.biz/audio/food-prices.mp3]

Audio, Ethanol, News

Contentious Energy Bill Stalls in U.S. Senate

John Davis

The U.S. Senate has hit an impasse over a proposed energy bill that makes larger allowances for alternative energy, in particular, wind power, than previous energy bills.

This AP story from Forbes.com says Democrats had hopes for an early vote on the measure, but Republicans were against many of the measures in the omnibus bill:

The impasse over renewable fuels came as Democrats said they would seek nearly $13.7 billion in tax breaks to promote clean energy, biofuels, more fuel efficient vehicles and conservation.

Sen. Max BaucusThe Senate Finance Committee intends to discuss the tax plan on Tuesday, according to the committee chairman, Sen. Max Baucus, D-Mont. The proposal would extend dozens of tax breaks, such the one for building wind turbines. It also would create incentives such as tax credits for technology to capture carbon dioxide – the leading greenhouse gas – from power plants.

But some senators argued the wind requirement in the bill would not be feasible in their areas:

Senators from the South said utilities in their states could not meet the 15 percent requirement because they lack the wind power and other renewable resources prominent elsewhere, especially the West.

Sen. Pete Domenici“I’m not impressed with wind being the national energy source for America,” said Sen. Pete Domenici, R-N.M., who led the opposition to the renewable fuels standard.

However, Sen. Jeff Bingaman, a New Mexico Democrat, argued southern states could make use of wood and other local resources to produce biofuels.

As you can see, it will most likely be a long, drawn-out fight.

Biodiesel, Ethanol, Government, Legislation, Wind

Palm Oil Biodiesel Considered for Hawaii

John Davis

Blue Earth BiofuelsBlue Earth Biofuels, which is building a 40-million-gallon-a-year biodiesel refinery with capabilities to go to 120 million gallons, has gotten the green light from the Hawaiian legislature to move forward with the project. But, this article in BizJournals.com, says the company that will buy the biodiesel for electric production, Hawaiian Electric Co., will host a series of meetings with the National Resources Defense Council to look at the feedstock being either locally-grown or imported palm oil:

Estimates show that it will take three to five years for the state to produce enough biofuel for the facilities. Feedstock would be imported during a ramp up of in-state production.

The transition to biodiesel could allow the electric company to move away from oil imports while tapping an energy resource that can be transported between the islands.

Here’s a listing of the public meetings:

Oahu: June 27; 6:30-8:30 p.m.; Blaisdell center, Honolulu Stes. 9, 10
Hilo: June 28; 6:30-8:30 p.m.; UH-Hilo, Campus Center 301
Kona: June 29; 6:30-8:30 p.m.; Kealakehe High School Dining Hall
Maui: July 2; 6:30-8:30 p.m.; Maui Community College

Biodiesel

Experts Warn of Ethanol Glut

John Davis

Some experts are warning that the rapid growth in ethanol production could outpace this country’s ability to use it, possibly causing a glut of the alternative fuel.

This story in the Los Angeles Times says possible distribution issues won’t help the matter:

“It’s going to be a little bit of a bumpy ride, I think, but in the long run we are bullish on renewable fuels,” said (Gordon) Ommen, chairman, president and chief executive of Inver Grove Heights, Minn.-based US BioEnergy.

It’s a view shared by Geoff Cooper, who runs ethanol programs for the National Corn Growers Assn. He said the industry expected what he called a temporary oversupply for several months, though he hesitated to call it a glut.

In fact, some financial analysts are saying a glut of a million gallons a day could begin in the second half of this year and getting worse after that.

“We expect the relentless supply of new ethanol production capacity will lead to a 70% decline in margins by 2009,” wrote Bank of America analyst Eric K. Brown in a report last month.

Researchers at Iowa State University also raised concerns about falling profit margins as corn prices, driven by ethanol, rose from under $3 a bushel last summer to close to $4 a bushel lately. And as the ethanol supply grows, they predict, ethanol prices will drop.

Officials with the Renewable Fuels Association are downplaying the chances of any glut saying railroads should be able to solve much of the distribution problems.

Ethanol