Production, Demand for Ethanol Make Dramatic Jumps

John Davis

RFA logo The Renewable Fuels Association and the Energy Information Administration announced today that production of ethanol in 2006 reached 4.86 billion gallons… up 24.3% percent from 2005. Likewise, demand for ethanol is up by a third during the same time period.

From an RFA news release:

Bob Dinneen, RFA President “America’s ethanol industry is clearly stepping up to fulfill increased ethanol demand and help address the need to reduce America’s dependence on foreign oil,” said RFA President Bob Dinneen. “The nearly 25 percent increase in ethanol production over last year is consistent with the type of growth our industry has experienced in recent years and this growth will continue. The bottom line is America’s ethanol industry is up to the challenges that lie before us.”

The RFA says there are 114 ethanol biorefineries across the country that have the capacity to produce more than 5.6 billion gallons annually. Seventy-eight more ethanol refineries are under construction and seven expansion projects are underway that would give the U.S. a combined annual capacity of more than 6 billion gallons.

Ethanol, News

Indy Founder Named Family Farmer Friend

Cindy Zimmerman

NFU Indy Award Indianapolis Motor Speedway CEO and Indy Racing League founder Tony George received the inaugural Friend of the Family Farmer Award during opening ceremonies of the National Farmers Union annual convention March 3 in Orlando, Fla.

The honor recognizes those outside of agriculture who are contributing to the livelihoods of America’s family farmers and ranchers, according to National Farmers Union President Tom Buis (left), who made the presentation.

“Since 1909, we’ve been about speed and innovation,” George said. “Ethanol is about innovation.”

This year, the IndyCar Series is the first in motorsports to utilize 100 percent fuel-grade ethanol during the 17-race season that kicks off March 24 and includes the 91st Indianapolis 500 on May 27.

EPIC, Ethanol, Indy Racing, News, Racing

Forum Focuses on Energy

Cindy Zimmerman

The theme was Agriculture at the Crossroads — Energy, Farm & Rural Policy and it was obvious that energy was the headliner at USDA’s 2007 Outlook Forum last week.

The plenary session of the Forum featured some of the top names in agribusiness – ADM CEO Patricia Woertz, Cargill president Greg Page and CHS president John Johnson, together with Red Caveney of the American Petroleum Institute. The panel was moderated by Scott Kilman of the Wall Street Journal.

Outlook ForumWoertz started off by saying that ADM intends to use a “holistic” approach to meet food and energy needs. “Our approach is to see these global needs–for food, heat, light, mobility, security and a healthy environment holistically. To see them all as fundamental human needs, that are—in fact— interconnected.”
Page stated that Cargill’s philosophy was based on “balancing our agri-foods and biofuels businesses in a way that helps meet our vision of nourishing people. For us, this balance is best maintained through policies that are market-driven, trading arrangements that are open and compliant with existing agreements, and production and use that benefits the environment.”

Johnson compared the current biofuels boom to reality television. “If American Idol is the most watched television program in the country, I think its fair to say that energy, global warming and renewable fuels are now among the most watched topics in our nation.” Johnson went on to urge more incentives for new technology over mandates to increase alternative fuel use.

As a reality check, Caveney told members of the Outlook Forum that it is unlikely the United States will ever be totally independent of the need for foreign oil. He said there are three ways the industry can provide energy security – efficiency, technology and diversity.

“First, America’s energy companies must continue to improve their own energy efficiency, and encourage energy efficiency in other industries and by the American people; second, we must increase the use of advanced energy technologies that allow us to develop our resources cleanly and responsibly; and third, we must increase the diversity of our oil and natural gas supplies, both here at home and from around the world, while alternative and renewable sources of energy continue their rapid rates of growth.”

All presentations from the Forum are available in webcast and text form on the USDA website.

USDA Radio has several reports from the Forum:
Listen to MP3 File Woertz (1 min MP3)

Listen to MP3 File Page (1 min MP3)

Listen to MP3 File Johnson (1 min MP3)

Listen to MP3 File Caveney (1 min MP3)

Audio, Biodiesel, Cellulosic, Ethanol, Government, News

Alternative Fuel School Bus Webcasts Set for Next Week

John Davis

AFVi School administrators might want to mark Tuesday, March 13th on their calendars as the Alternative Fuel Vehicle Institute holds the AFV School Bus Connection webcast from 10:30 a.m.-noon PST.

According to an institute press release, the webcast is designed to bring alternative fuel industry experts together to provide the latest information on funding, products, and legislation related to specific markets:

“The budget woes of school districts across the country have been compounded in recent years by fluctuating oil prices,” said Annalloyd Thomason, Executive Director of the Alternative Fuel Vehicle Institute (AFVi). “The debate many school districts are having that posits books against buses needs to be replaced with concrete tools that equips school fleet managers to make a business case citing financial opportunities as well as the growing costs of health problems that exhaust inflicts on our nation’s children.”

The webcast is free, but organizers are asking that you register at www.afvi.org/webcasts.html.

AFVi is also holding its Alternative Fuels & Vehicles Conference & Expo in Anaheim, California April 1-4.

Biodiesel, Ethanol, News

US-Brazil Could Become OPEC of Ethanol

John Davis

Pres. Bush and Luiz Inacio Lula da Silva
The news sites are all abuzz today about a pending deal that could turn the United States and Brazil into what the AP calls the “OPEC of ethanol.”

President Bush is traveling to Brazil late this week and is expected to ink the deal with Brazilian President Luiz Inacio Lula da Silva:

The deal is still being negotiated, but the two leaders are expected to sign an accord on Friday to develop standards to help turn ethanol into an internationally traded commodity, and to promote sugar cane-based ethanol production in Central America and the Caribbean to meet rising international demand.

Across Latin America’s largest country, Brazilian media were billing the Bush-Silva meeting as a bid to create a new two-state”OPEC of ethanol,” despite efforts by Brazilian and US officials to downplay the label amid concerns that whatever emerges would be viewed as a price-fixing cartel.

One point of contention expected to be addressed at the meeting is a 14-cent-a-liter U.S. tariff on Brazilian ethanol imports. This story on Bloomberg.com shows just how much the Brazilians, of course, don’t want the tax:

“If we’re going to have free commerce, then let’s have free commerce, so that people have the opportunity to buy and sell. The high tariffs the U.S. imposes on Brazilian ethanol don’t make any sense,” Lula said on his weekly radio address to the nation today.

Ethanol is certainly king in Brazil as eight out of 10 cars runs on the alternative fuel.

Ethanol, Government, International, News

Another Biodiesel Plant on the Way for New Mexico

John Davis

Just as I posted the article on New Mexico’s State House passing a biodiesel standard, I found this AP story in the High Plains Journal that says a 75-million-gallon-a-year plant will be built near Clovis to convert animal fat from feedlots into biodiesel:

Dallas-based American Renewable Fuels, a subsidiary of Australian Renewable Fuels Ltd., plans to begin construction on its plant this summer.

Ross Garrity, chief executive of American Renewable Fuels, said one of the reasons his company chose New Mexico was that the state doesn’t have a large biodiesel industry.

“After talking with the governor, it became very apparent to me that New Mexico was very aggressive in wanting our business in the state,”

Maybe not a big industry, yet… but there’s also another 15-million-gallon-a-year plant under construction near Clovis (see my post from last month). Throw in the new biodiesel requirement working its way through the state legislature, and the state could be poised for something big. Stay tuned…

Biodiesel

NM Legislature Moves on Biodiesel

John Davis

Rep. John Heaton The New Mexico House has passed a measure that would require all diesel vehicles to use at least 5% biodiesel. Under Rep. John Heaton’s bill, all state agencies and public schools would be required to buy the 5% blend starting after in about three years. All diesel vehicles, public and private, would have the requirement after July 1st, 2012.

The Las Cruces (NM) Sun-News reports the measure tries to quiet some critics who worry that biodiesel won’t be available or will become too expensive:

The bill authorizes the New Mexico Department of Agriculture director and the secretary of the Energy, Minerals and Natural Resources Department to suspend sale of biodiesel for up to six months.

To suspend the requirement, both directors must find that sufficient amounts of biodiesel are unavailable to meet demand or the price of the fuel blend significantly exceeds the price of diesel for at least two months.

As we reported earlier, the National Biodiesel Board says there are 35 states with 135 biodiesel-related bills pending. The New Mexico measure now moves on to the state senate.

Biodiesel, Legislation

Classic Flex Fuel Vehicles

Cindy Zimmerman

NEVC BoothNational Ethanol Vehicle Coalition is just one of several ethanol-related exhibitors at the 2007 Commodity Classic in Tampa this week. Staff members Michelle Kautz and Haley Wansing were giving away t-shirts to growers who signed up at the booth to receive regular e-mail updates from the organization.

Greg Krissek of ICM is NEVC’s Chairman of the Board and he was at the booth in the trade show talking with farmers about how provides consumers with a one-stop resource for information about E-85 ethanol-enriched fuel and the vehicles that use it.

Greg KrissekOne of the highlights of the NEVC website is an online E-85 pump finder which he says the staff works very hard to keep updated. He says that there continues to be a very high level of interest in E-85 and that the crowd here seem to be very knowledgeable about it.

Listen to an interview with Greg done by Chuck Zimmerman as part of the Commodity Classic podcast series: Listen to MP3 File Greg Krissek Interview (6 min MP3)

Commodity Classic, Ethanol, Flex Fuel Vehicles, News

Vision 2020

Cindy Zimmerman

Vision 2020 Biofuels will play a major role in the soybean industry for the next 10 to 15 years under the United Soybean Board’s Soy 2020 released Friday morning at the Commodity Classic in Tampa, Florida.

The objective of Soy 2020 was to “create a vision for the future of U.S. soybeans that would be a complete collaboration and that would ultimately drive success for soybeans despite what the future may hold.” In addition to the USB, the project included support from Monsanto, Deere and Company, the National Oilseed Processors Association and Farm Credit Council.

According to the Soy 2020 Vision, the soybean value chain should promote soy health and nutrition benefits, environmental sustainability and technology safety to global consumers of food, fuel and feed, as well as support the viability and growth of animal agriculture, renewable energy and other soy-consuming industries.

“The continued population growth and growing economic status will provide many challenges and opportunities in the future,” says Don Borgman, director of Agricultural Industry Relations for John Deere’s North American operation. “The U.S. soybean industry can take a leadership role in feeding a hungry world and providing energy to sustain global economic growth.”

You can listen to an interview with Don Borgman here: Listen to MP3 File Don Borgman Interview (6 min MP3)

Biodiesel, Commodity Classic, John Deere

Branding Program Gains Momentum

Cindy Zimmerman

EPIC booth The ethanol industry is making progress towards the goal of helping consumers readily identify ethanol-enhanced fuel at the pump no matter where they are in the country.

Seven states – Kansas, Michigan, Illinois, South Dakota, Nebraska, Arkansas and Ohio – have now officially approved labels that incorporate the “e” brand to mark pumps that dispense E10, or ten percent ethanol fuel, according to the Ethanol Promotion and Information Council or EPIC.

At the 2007 Commodity Classic in Tampa, Florida this week, EPIC Director of Operations Robert White said the ethanol branding program has benefits for everyone, including individual retailers who in many cases are making less than a penny a gallon on gasoline sales.

“This is something that’s free to them – the labels, the shipping, point of sale materials and our national program – all tie consumers back to their individual station and their individual pumps,” White said.

White says EPIC is already working with another 25 states and hope to have at least half by the end of the year.

Commodity Classic, EPIC, Ethanol, News