Ethanol Likely to Pass Goal

John Davis

Officials with the National Corn Growers Association say the U.S. is on target to reach a 15-billion-gallon-a-year production goal… much earlier than the original 2015 goal.

NCGA Pres. Ken McCauleyIn fact, NCGA President Ken McCauley tells the Kansas City Star that goal could be reached as early as 2011 or 2012:

That reflects the growing confidence within the ethanol industry about its prospects in an era of expensive gasoline. But the association’s view is especially interesting in that additional production of corn, currently the main feedstock for ethanol, is crucial in meeting the rosier projections for ethanol.

McCauley noted the country’s corn farmers were ramping up production.

About 10.5 billion bushels of corn were harvested last year and an estimated 12.5 billon would be produced this year. Improved yields and more acres planted with corn should eventually increase production to 15 billion bushels, with about a third of that used for ethanol. A bushel of corn currently produces roughly 2.8 gallons of ethanol.

“We look at this as a real opportunity for agriculture,” he said.

The article goes on to say that the Renewable Fuels Association pegs current ethanol production at 6.2 billion gallons a year and expects that to double by early 2009.

Ethanol, News

Biofuel Locator Maps Unmet Demands

John Davis

NearBio logoNearBio, the innovator of technology that sends to your computer, cell phone, or mobile device info on where the nearest alternative fuel station is, has established a new web site: NeedBio.COM, a free registry that links local consumer demand for biodiesel with suppliers serving their area.

Check out this from a company press release:

“By giving biodiesel consumers a voice, and giving biodiesel suppliers the needed data to optimize their delivery of biodiesel, NEEDBIO is taking a major step forward in accelerating the US adoption of biodiesel in the most efficient way,” said Lisa Hull, VP and Co-Founder. She added, “With this website, the local demand for biodiesel blends will be documented, tracked, and promoted, and made available to the entire US biodiesel supply side community. This will ensure optimal and rapid provisioning of biodiesel fuel to the regions of greatest interest.”

The NeedBio web site will track information such as what type of vehicle, how many, the gas mileage, the annual mileage, locations of where the consumer fueled up, and even optional comments. Biofuel sellers see this as very valuable information:

“The ability for a supplier to have accurate market data about regional biodiesel demand is of critical importance in determining when and where to expand operations,” said Gavin Carpenter of SeQuential Biofuels. He added, “And just as important is the ability to understand trend data over time, and details about blend requirements, fleet usage, and individual consumer comments. We are thrilled NearBio has created NEEDBIO as a single, nationwide repository for consumer biodiesel demand.”

Of course, this registry will only be as good as the information customers put into it. Officials hope that it will solve some of the frustration behind not being able to find the right biofuel for the right vehicle.

Biodiesel

Udall Bus Running on Biodiesel

John Davis

Udall Bus
A B20 blend of biodiesel will be what fuels the Morris K. Udall Foundation’s bus tour this year. The tour that highlights public service, environmental, and Native American issues launched today in Washington, D.C.

Rahall-ScarlettAccording to this National Biodiesel Board news release, members of Congress and federal government agency leaders kicked off the coast-to-coast Udall Legacy Bus Tour near the U.S. Capitol in the first motor coach approved by the University of Vermont’s “Green Coach Certification” program:

NBB logo“We are pleased to see that the Udall Foundation and the federal agencies and equipment manufacturers who are sponsoring the tour recognize biodiesel’s valuable contribution to the environment,” said NBB Chief Executive Officer Joe Jobe. “It is only fitting that the bus tour will feature many National Parks since the Park Service’s fleets were among the first in the nation to use biodiesel. Today, hundreds of fleets, including government, commercial and school buses, use biodiesel to benefit America’s environment, energy security and economy.”

The bus tour winds through the country from now until the beginning of August. Along the way, the biodiesel-powered tour bus will carry 13 Udall scholars from the East Coast to the West, winding more than 8,600 miles, passing through 26 cities, six national parks, and six Native American communities.

You can check it out on the web at www.udall.gov.

Biodiesel, Government

Soybean Prices Spike Biodiesel Growth

John Davis

The latest monthly crop report from the USDA says the rapid rise in soybean prices, brought on by the rapid rise in the biodiesel industry, is keeping biodiesel from being as profitable as it could be.

This story on Forbes.com says the price for the biodiesel feedstock just rose above the profitability level:

Industry experts say biodiesel plants make a profit if soybean oil prices are 34 cents per pound or less.

On Monday, soybean oil for July delivery was trading at nearly 35 1/2 cents per pound on the Chicago Board of Trade. The market was anticipating prices to rise, said Fred Seamon, a Board of Trade agriculture analyst.

Soybean oil for December 2008 delivery was trading at just under 38 cents a pound, he said.

The article goes on to say while this won’t kill the biodiesel industry, it certainly won’t help. Even while other oil stocks (such as animal fats) can be used, soybean oil is used as the benchmark for pricing.

Biodiesel

Biodiesel, Solar for the Big Apple

John Davis

Being green isn’t just for areas surrounded by green farm fields. The grey, concrete jungle of New York City will start using solar power and biodiesel to heat city buildings.

Michael BloombergAn AP story posted on MSN’s money web site says the announcement comes as part of Mayor Michael Bloomberg’s environmental plans. He wants the city to reduce the city’s carbon emissions by 30% in the next 23 years. Part of the plan includes replacing city taxis with hybrids and charging a surcharge for anyone who drives into the most congested areas of Manhattan.

The most recent part of the plan includes using biodiesel for heating city buildings by next summer and the solicitation of bids to put solar panels on city-owned buildings.

After tackling city buildings, councilmen are looking at making a biodiesel mandate for private home heating oil starting in 2009.

Biodiesel, Government

Energy, Ag Departments Announce $18 mill in Biofuels Grants

John Davis

Eighteen million dollars in government grants are up for grabs as the U.S. Departments of Agriculture and Energy announce solicitations for biomass research and development.

This press release from USDA’s web site says the money will go to researching and developing biomass-based products, biofuels, bioenergy and related processes:

Samuel Bodman“Making these funds available represents this Administration’s ongoing commitment to promoting clean energy technologies to help diversify our nation’s energy mix in an environmentally sensitive way,” Energy Secretary Samuel Bodman said. “I am hopeful that these projects will play a critical role in furthering our knowledge of how we can cost effectively produce more homegrown, bio-based products to help reduce our reliance on imported sources of energy.”

Sec. Mike Johanns“These grants are one of many steps we are taking to meet the President’s goals of reducing petroleum dependency,” Agriculture Secretary Mike Johanns said from South Dakota, where he was addressing the Western Governor’s Association. “They will fund essential research that not only will lead to the creation of new, sustainable energy sources, but also will create new uses and markets for agricultural products.”

The grants will go to four main areas: the development of technologies to convert cellulosic biomass into intermediaries for biobased fuels getting 45% of the money; product diversification receiving 30% percent) feedstock production, 20%; and analysis for strategic guidance getting 5%.

Each award won’t exceed $1 million. State and federal research agencies, national laboratories, private-sector groups and nonprofit organizations are eligible to submit their grant applications by July 11, 2007.

Biodiesel, Ethanol, Government, News

GAO Says Energy Department Lacks Biofuels Plan

John Davis

GAO logoCongress’ financial watchdog, the Government Accountability Office, says the U.S. Department of Energy lacks a plan for how to match up increased biofuels production with infrastructure and vehicles to use the green fuels.

Department of EnergyThis highlight report on the GAO web site says that America’s reliance on oil poses significant economic and environmental risks. But ethanol and biodiesel could replace oil for transportation fuels. However, the government doesn’t seem to be ready for the challenge:

DOE has not yet developed a comprehensive approach to coordinate its strategy for expanding biofuels production with the development of biofuel infrastructure and production of vehicles. Such an approach could assist in determining which blend of ethanol—E10, E85, or something in between— would most effectively and efficiently increase the use of the fuel and what infrastructure development or vehicle production is needed to support that blend level. In addition, DOE has not evaluated the performance of biofuel-related tax credits, the largest of which cost the Treasury $2.7billion in 2006. As a result, it is not known if these expenditures produced the desired outcomes or if similar benefits might have been achieved at a lower cost.

The report recommends that the Secretary of Energy collaborate with public and private sector stakeholders to develop a plan that coordinates expected biofuel production with gthe infrastructure to get it into the tanks of the vehicles that will need to be built, and coordinate with the Treasury Department to make sure biofuel tax credits and grants are doing what they afre supposed to do.

Biodiesel, Ethanol, Government, News

POET VP Nominated to I-CARES

John Davis

Dr. Mark StowersVice President for POET’s Research & Development division, Dr. Mark Stowers, has been tapped to the external advisory committee of the International Center for Advanced Renewable Energy and Sustainability… also known as I-CARES.

According to a POET press release, the Washington University in St. Louis-based I-CARES will encourage and coordinate university-wide and external collaborative research in the areas of renewable energy – including biofuels, CO2 mitigation and coal-related issues:

POET logoI-CARES will foster institutional, regional and international research on the development and production of biofuels from plant and microbial systems and the exploration of sustainable alternative energy and environmental systems and practices. Funding for the project will include a $55 million investment from Washington University.

“I am excited about the opportunity to be part of such a prestigious effort to promote collaborative research in renewable energy and sustainability,” Stowers states.

Stowers has been working with POET since October of 2006 where he is responsible for overseeing scientific and technology advancements for the company including production of cellulosic ethanol.

Ethanol, News

EcoJet Talk With Bernard Juchli

Chuck Zimmerman

Bernard Luchli being interviewed by meWhile I was attending last week’s CMA Music Festival Jay Leno’s EcoJet showed up on display. Traveling along to appear in the Michael Peterson/New Holland Celebrity Tractor Race was Jay Leno’s Garage manager, Bernard Juchli. Thanks to John Herath, producer of the nationally syndicated agricultural talk radio show, AgriTalk, for videotaping me doing the interview. John also edited it together for me and I think I need to take a lesson from him.

In this interview with Bernard you can learn all about the EcoJet that was on display at the New Holland tent. Jay just wanted a nice little jet engine powered car and with Bernard’s help and the help of companies like General Motors he sure got one. This baby is powered by 100% biodiesel. Jay has a New Holland Boomer tractor that runs on biodiesel in his garage to move cars around with.

Biodiesel, Video

Team Ethanol Doing Well

Cindy Zimmerman

Indy 500 Number 17 Team Ethanol car driver Jeff Simmons was a lap leader for five laps at the Texas Motor Speedway this past weekend, a career record for him. He finished sixth in the Bombardier Learjet 550k, behind winner Sam Hornish, Jr., Tony Kanaan, Danica Patrick, Dario Franchitti and Vitor Meira.

Overall, Jeff is doing pretty well this year, 11th in the standings with 140 points and $567,000 plus in earnings. He has been doing a little bit better with every race. We’d like to see him do really well in the next race – the Iowa Corn Indy 250, sponsored by the Iowa Corn Growers, coming up June 24. Race time is 1:00 pm on ABC.

EPIC, Ethanol, Indy Racing, News