Ethanol Expansion and Education

Cindy Zimmerman

Amy KOne former and two current Democratic presidential candidates are sponsors or co-sponsors of a bill introduced by Senator Amy Klobuchar (D-MN) intended to expand consumer access to 85 percent ethanol fuel, or E-85. Primary sponsors of the bill with Klobuchar include Barack Obama, (D-IL), Kit Bond (R-MO), George Voinovich (R-OH), and Dick Durbin (D-IL). Senators Ben Nelson (D-NE), Debbie Stabenow (D-MI), Sherrod Brown (D-OH), Hilary Clinton (D-NY), Claire McCaskill (D-MO), and John Kerry (D-MA) are also co-sponsors of the legislation.

According to a release from Klobuchar’s office, the Ethanol Education and Expansion Act of 2007 would work to reduce prices at the pump for consumers by providing grants through the U.S. Department of Agriculture (USDA) to farmer-owned ethanol producers to install additional E-85 pumps at rural gas stations as well as the equipment needed to sell E-85 directly to gas stations.

Sen. Klobuchar will work to include the legislation in the 2007 Farm Bill, which the Senate is expected to take up in the coming months.

Energy, Ethanol, Government, News

No New Records

Cindy Zimmerman

RFAApparently no new records to report, but ethanol production still remains strong, according to the latest figures.

The Renewable Fuels Association reports that production of domestically produced ethanol in March averaged 384,000 barrels per day while demand was 414,000 barrels a day, which is an increase over last year by 83,000 b/d in production and 34,000 in demand.

Ethanol, News

US BioEnergy Makes New Move Into Millennium

Cindy Zimmerman

US BioenergyUS BioEnergy Corporation, one of the largest producers of ethanol in the United States, just got bigger.

MillenniumThe company has agreed to acquire Millennium Ethanol, which is constructing a 100 million gallon ethanol plant near Marion, South Dakota, expected to begin production in the first quarter of 2008. With this acquisition, US BioEnergy will have 8 plants in 6 states with expected total production of 700 mgy by the end of 2008.

Gordon Ommen, CEO of US BioEnergy Corporation says they are excited about having Millennium’s approximately 900 shareholders, many of whom are farmers, become shareholders of US Bio. “This fits well with our existing shareholder base, including CHS and their 325,000 farmer owners.”

Ethanol, Facilities, News

Brewin’ Up Biodiesel in the Garage

John Davis

Most of the time, I tell you about the big biodiesel plants that are helping shed this country of its dependance on foreign oil. Those operations that crank out millions of gallons a year are great and make a BIG difference. But sometimes its nice to report on the little guys who are making a difference in their own right.

The SiloCase in point, this story from the Buffalo (NY) News. The owner of a Lewiston, NY restaurant (The Silo pictured on the right) is brewing up his own biodiesel in his own garage… using his own restaurant’s leftover cooking oil. He says he got the idea while living in France last winter:

“I met someone who was making [biodiesel fuel] in five-gallon buckets,” said Alan Hastings, who owns the restaurant on the Niagara River. “I couldn’t believe it. The guy was going around to restaurants and begging for their used cooking oil. I got excited about it.”

Hastings said he started learning the process in France, where he also purchased a Fiat with a diesel engine.

Hastings said he came back, eager to use the cooking oil from his restaurant in the biodiesel process, and soon began saving on both gasoline and the added cost of paying somebody to haul away his used fryer oil.

He said he was definitely motivated by economics — with the cost to produce the biodiesel fuel at about 50 cents per gallon. He said his Volkswagen gets about 50 miles per gallon using the biodiesel fuel.

Hastings does take some precautions, such as keeping the flammable methanol used in the process in a separate building.

Hopefully, he won’t run afoul of the law like some home brewers in Wisconsin ran into. You might remember my post from March 25th, 2007 when I told you about Steven Griesbach and Paul Simon who got in trouble for not paying road taxes on their home-brewed biodiesel. Of course, this came at the same time the state of Wisconsin was giving money away to encourage some big producers to produce biodiesel.

Biodiesel

Biodiesel Gives Back

John Davis

Many times we hear about the government incentives designed to encourage the biodiesel industry, but this story is about something the industry is giving back to one community.

According to this story in the Decatur (Georgia) Daily News, the city of Athens, GA was in need of a sponsor for a family resource center when a local biodiesel producer stepped up to the plate:

Athens City Council President Harold Wales said Melvin Kilgore of Southeast BioEnergy LLC was looking for a project to sponsor when he heard about local leaders seeking seed money to start the center. BioEnergy plans to open its research and development facility in Elm Industrial Park on July 1.

The Limestone County Commission has offered the center space in a building it owns in Crutcher Shopping Center. The resource center would house The Food Bank, Crisis Center and other programs, such as domestic violence prevention and drug rehabilitation.

Community leaders, including District Court Judge Jeanne Anderson, asked the city and county for $26,000 each to fund a director and utilities for the first year. The council had concerns about funding that amount.

Kilgore said he would fund it all… showing how big of heart biodiesel has.

Biodiesel

Int’l Biodiesel Conference Set

John Davis

Int’l Congress on BiodieselMark your calendar for the International Congress on Biodiesel, November 5-7th in Vienna Austria. Congress General Chair Michael Haas of the USDA’s Agricultural Research Service posted a message on the American Oil Chemists’ Society’s web site (one of the conference sponsors, along with the USDA) inviting participants to open a global discussion on the science and the technologies of biodiesel:

“Most of us tend to think of biodiesel largely in the context of local or national fuel needs. However, broader considerations now dictate that we must think and communicate on this subject in a new way. Biodiesel feedstocks as well as biodiesel itself are being traded globally. Fuel quality standards vary from country to country. New feedstock oilseeds are being considered in countries where they never before have been grown. Engines built in one country are being exported to other countries and must function in the fuel and regulatory climates there. Global warming knows no national boundaries. For these and for other reasons it is the right time to open a global discussion on the science and the technologies of biodiesel.”

Organizers encourage those interested in attending to register by July 6th on the American Oil Chemists’ Society web site to get a special online discount.

Biodiesel, International

Duke Energy Buys Wind Assets

John Davis

Duke EnergyNorth Carolina-based Duke Energy has acquired the wind power development business assets of Tierra Energy. According to this press release on Duke’s web site, it bought more than 1,000 megawatts of wind assets under development in the Western and Southwestern United States. About 240 megawatts in Texas and Wyoming will be up and running commercially by the end of next year with the rest operational possibly by 2009.

“As our nation’s appetite for electricity continues to grow, renewable energy will play a larger role in meeting that demand,” said Duke Energy Chairman, President and CEO, James E. Rogers. “This acquisition supports our strategy to increase our investment in renewable energy and national efforts to reduce carbon emissions.”

Tierra Energy President David Marks will become Duke Energy’s senior vice president, business development – wind energy. Five other senior Tierra management team members will also join Duke.

This isn’t Duke’s first venture into the clean energy market. The company also has purchase agreements for wind generation in Indiana and just put in solar panels at 10 Indiana schools.

Wind

Nebraska Gets Biodiesel Tax Credit

John Davis

With the stroke of a pen, Nebraska biodiesel producers gain a credit for production of the green fuel. Governor Dave Heineman signed the legislation, originally sponsored by State Senator Chris Langemeier of Schuyler, designed to encourage greater investment in biodiesel production. According to this release on the Governor’s web site, a tax credit of up to 30% would be given to those who invest in locally-owned facilities producing B100 biodiesel:

Governor Dave Heineman“There is tremendous potential for Nebraska to expand our presence in the renewable fuels sector by becoming a leading producer of biodiesel,” Gov. Heineman said. “This bill will encourage greater diversity in renewable fuels by providing opportunities for Nebraskans to invest in the development of a biodiesel facility.”

Senator Chris LangemeierSen. Langemeier said, “With the signing of LB 343, coupled with the vast resources available in Nebraska, we will be positioned to become the nation’s leader for biodiesel production.”

Nebraska has only one biodiesel plant… interesting since it is the fifth largest producer of soybeans. But two more facilities are in the works, and if the credit does its job, more will be on the way.

Biodiesel, Government

BioSelect, Chevron Open Biodiesel Plant

John Davis

ChevronBioSelectBioSelect Fuels LLC – a division of Standard Renewable Energy – and oil-giant Chevron cut the ribbon on a new biodiesel plant in Galveston today (May 29th). According to this press release on Chevron’s web site, the refinery will start producing 20 million gallons of biodiesel a year with the capability of 110 million gallons… making it one of the first large-scale biodiesel plants in North America:

“Chevron’s investment is a tangible manifestation of the company’s strategy to invest in renewable energy technologies,” said Donald Paul, vice president and chief technology officer, Chevron. “Biofuels are playing an increasingly important role in diversifying our nation’s energy portfolio. With growing demand, the nation needs all the sources of energy to contribute to supply. Our involvement with BioSelect Galveston will allow us to apply our world-class capabilities in transportation fuel manufacturing and distribution while expanding our knowledge and experience in large-scale biofuels production,” said Paul.

“Chevron is setting an example for the energy industry by constant innovation and proactive leadership to create new energy sources, like the added domestic fuel production capacity at BioSelect, which is critical in meeting growing demand,” said John Berger, Chairman and CEO of Standard Renewable Energy.

BioSelect has plans to expand to expand its total biodiesel-producing capacity at its multiple large-scale sites to 470 million gallons a year by 2010.

Biodiesel

Energy Crop Incentive Bill

Cindy Zimmerman

John ThuneSen. John Thune (R-SD) has introduced legislation aimed at helping farmers near biorefineries begin growing dedicated energy crops.

According to Thune, the Biofuels Innovation Program Act would offer farmers incentives to grow crops, such as switchgrass and fast-growing trees, for use as cellulosic ethanol feedstocks.

“Cellulosic ethanol, produced from homegrown sources like corn stover, wheat straw, switchgrass and wood chips, has incredible potential to supplement corn-based ethanol. But if cellulosic ethanol is to achieve its potential, it is critical that Congress help this industry overcome initial market barriers” said Thune. “My legislation would spur the construction of biorefineries across the country and provide incentives to farmers in surrounding areas to grow energy dedicated crops that can eventually supply these biorefineries in a cost-effective, environment-friendly way.”

Thune hopes the legislation, which is co-sponsored by Sen. Ben Nelson (D-NE), will be included in the 2007 Farm Bill energy title. Similar legislation has also been introduced in the House.

The bill would fund several USDA feasibility studies to determine the level of interest and likelihood of success for biorefinery constructions. The bill would authorize a cost share and per-acre rental payment for farmers during a contract’s first five years, in order to help the biorefinery get established and build a market. In addition, farmers selling byproducts and residues, such as wheat straw and corn stover, to ethanol plants would be eligible for matching payments of up to $45 per ton.

Cellulosic, Ethanol, Government, News