Biofuel Producers Wary of Bush’s Goals

John Davis

Pres. George W. BushProducers of ethanol and biodiesel aren’t sure they can meet President Bush’s goal of 35 billion gallons of renewable or alternative fuels produced a year by 2017. Currently, just under a billion gallons a year of biodiesel and about six billion gallons of ethanol is produced. The American Agriculturalist web site says the debate came during an industry event last week in Houston:

A Bush administration official Friday defended the viability of the president’s goals, but the discussion at the Houston event underscores the magnitude of the challenge facing the U.S. as it struggles to feed its growing energy needs in an increasingly carbon-limited world.

“I’ve yet to meet anyone who thinks more than half could be from ethanol and biodiesel,” Pearce Hammond, an analyst at Simmons & Co. International, says of the targets. He says total production of ethanol and biodiesel could reach 17.5 million gallons by 2017. Hammond says there could be other solutions to the conundrum, such as coal-to-liquids technology or the use of natural gas as a transportation fuel.

But Hammond, who emceed some of the sessions Friday, also warned that U.S. gasoline demand is forecast to grow by some 35 million gallons a day over the next decade.

“It just touches on how big the challenge is to penetrate and change the fueling habits,” he says.

Speaking with reporters after a luncheon address, Paul Dickerson, an Energy Department official, says the administration’s goal is realistic. He pointed to other fuels under development, as well as to leading-edge technologies being funded chiefly by private-venture capital.

“We’re more bullish on the output than some of the folks here,” says Dickerson, the chief operating officer for the department’s Office of Energy Efficiency and Renewable Energy.

Conference attendees say the biggest obstacle will be enough feedstocks to make all this fuel possible.

Biodiesel, Ethanol

Alltech Founder Interview

Chuck Zimmerman

Dr. Pearse LyonsI’m attending the 2007 Alltech International Feed Industry Symposium and covering it primarily on Domestic Fuel sister site, AgWired. I thought you might enjoy hearing an interview I conducted with Dr. Pearse Lyons, founder of Alltech. This is a company that produces animal feed additives. The theme of their Symposium is “The New Energy Crisis: Food, Feed, or Fuel?” Right away I was intrigued to see what his take would be on the price of corn and the mandate for ethanol production.

He says that it’s ironic that back in 1980 when he founded his company they were involved in brewing and making alcohol. From there though the company branched out into the animal feed additives arena. Now he feels like things are coming full circle since the challenge in producing ethanol is how to make the process more efficient while developing processes using new biomass products instead of corn. He sees a really bright future for Alltech as a leader in this business.

I also like his comments about our government and the decisions that are driving the development of ethanol production. As he says, it doesn’t matter where you stand on certain issues, the government isn’t stupid. The mandate to increase production of biofuels like ethanol is forcing companies like his to increase the pace at which they’re developing products and processes to meet the mandate. It’s not only good for business but it means we’ll become less reliant on dwindling supplies of oil and other traditional energy sources much faster. That’s also good for our environment and our country.

You can listen to my interview with Dr. Pearse Lyons here: [audio:http://www.zimmcomm.biz/alltech/alltech-symposium-07-lyons.mp3]

If you’re interested I’m putting all my photos at the Alltech Symposium in the Alltech 2007 International Feed Industry Symposium Photo Album.

Agribusiness, Audio, Ethanol, News

EPIC Expedition Ends

Cindy Zimmerman

GW 101Global Warming 101, a three month expedition across Baffin Island in the Arctic Circle, has completed its mission.

The purpose of the expedition, which was sponsored in part by the Ethanol Promotion and Information Council (EPIC) and Fagen, Inc., was to draw attention to the effects global climate change is having on native Inuit population in some of the coldest areas of the world – the first to see the impacts of the warming of the earth.

DogsEPIC executive director Tom Slunecka and Fagen president Ron Fagen both traveled to the small remote fishing and hunting community of Iqaluit for the conclusion of the expedition.

“Most people wouldn’t think that there’s a connection between biofuels and the Arctic circle,” Slunecka said. “But as we’ve discovered, ethanol’s ability to reduce harmful gases that contribute to global warming is dramatic, and there’s no more dramatic place to see it than to go to the North Pole.”

Slunecka says world-renowned explorer Will Steger talked with the Inuit people to find out about the changes they have been seeing. “The elders in the tribes have seen a large change in insects, birds and plant life now being introduced in the region,” he said. “With the warming climate, they are very concerned about new diseases being introduced that will ultimately affect everyone who lives in the region.”

Listen to an interview with Tom here: [audio:http://www.zimmcomm.biz/epic/epic-gw101-wrap.mp3]

Audio, EPIC, Ethanol, global warming, News

Colorado Coalition Success

Cindy Zimmerman

Colorado E85When the Colorado Governor’s E85 Coalition was formed at the end of 2005 there were only ten E85 fueling stations available in the state.

“We’re at 20 now and by the end of the year we expect to have over 50,” says Gerry Harrow, president of the coalition. “So, we’ve had some great success in a very short time.”

HarrowHarrow says with the election of Bill Ritter as governor of the state last year, the coalition’s mission has been expanded beyond E85 and is now known as the Biofuels Coalition.

“He asked us to expand our focus into also putting out biodiesel infrastructure,” said Harrow. “So, we added that just recently, within the last month, to our mission.”

The Biofuels Coalition in Colorado includes representatives from the automobile industry, government, retailers, biofuels producers, petroleum marketers and agriculture. Harrow thinks Colorado’s model can be used in other states.

“Each state has its own unique needs and situation, but some of the things we have done here could help other states,” he said. “One of the things we are doing is working with NREL (the National Renewable Energy Lab) to publish a document that discusses the successes we have had and how we came to those successes and some of the things maybe a coalition would need to do to get started.”

Listen to an interview with Gerry about the coalition and their successes: [audio:http://www.zimmcomm.biz/ethanol/colorado-e85-harrow.mp3]
Photo Credit: Zach Ornitz/Aspen Daily News

Audio, Biodiesel, E85, Ethanol, Government, News

Farm-to-Fuel Investment Act

Cindy Zimmerman

Amy KAs livestock producers continue to voice concerns about rising feed costs, proposed “transition assistance” for farmers to grow dedicated energy crops was introduced this week in legislation sponsored by Senators Tom Harkin (D-IA) Amy Klobuchar (D-MN) and Kent Conrad (D-SD).

“Farmers are going to be a key part of our nation’s ability to achieve energy independence,” said Klobuchar. “These crops could revolutionize how we look at energy just like ethanol and biodiesel have. Now its time for Congress to act and reward our farmers at home, protect the environment, and pave the way for tomorrow’s energy.”

HarkinHarkin, chairman of the Senate Ag Committee, said in a press release that the Farm-to-Fuel Investment Act “charts a course for initiating the extensive production of biomass feedstocks while continuing to protect wildlife and promote sound soil and water conservation practices.”

The bill would provide three years of transition assistance to farmers who produce dedicated energy crops in an area 50 miles around a biorefinery that will produce fuels like cellulosic ethanol. Incentives are needed for the first few years because it takes about three years for crops like switchgrass to reach their first mature harvest. The three-year period also takes into account the time needed to develop a biorefinery to purchase the crop. After a market has developed and the crops have matured, the transition assistance would phase out.

Conrad
Senator Conrad said he is supporting this legislation “because I believe that North Dakota can help this nation grow its way out of our dependency on foreign energy – whether it’s from cellulosic ethanol or biodiesel. It’s time we turned from the Mid East for our energy and turned instead to the Mid West.”

To participate, farmers would have to agree to adopt conservation practices for soil quality, water quality and wildlife habitat. This legislation also allows for an additional incentive to farmers who produce native perennial energy crops, such as prairie grass mixtures, because of the tremendous conservation benefits those crops provide. Perennial grasses protect soil and water quality, sequester carbon, create wildlife habitat and save farmers money on fuel and fertilizer.

Cellulosic, Ethanol, Government, News

POET Breaks More Ground

Cindy Zimmerman

This week, POET held a groundbreaking ceremony in Marion, Ohio for the second of three planned ethanol production facilities in the Buckeye State.

POET OhioThe North Central Ohio community of Marion is located in Marion County 50 miles north of Columbus. POET Biorefining­ Marion, a $130 million production facility, will annually produce 65 million gallons of ethanol and 178,000 tons of premium Dakota Gold Enhanced Nutrition Distillers Products™ from 21 million bushels of locally grown corn.

“As home to the Ohio Corn Growers, the Buckeye Renewable Fuels Association and the Ohio Corn Marketing Program, Marion knows better than most the benefits of the ethanol industry,” said Jeff Broin, CEO of POET. “Thanks to a strong partnership with the community, POET Biorefining ­ Marion is about one year away from producing 65 million gallons of ethanol that will strengthen the local economy, improve the environment and reduce our nation’s dependence on foreign oil.”

EPIC, Ethanol, Facilities, News

Biodiesel, Tractors and Jay Leno’s Garage

Chuck Zimmerman

Joe Jobe, Jay Leno and Gene HemphillThis week I made a trip with Joe Jobe (left), CEO of the National Biodiesel Board to Jay Leno’s Garage. Jay’s on the New Holland tractor and next to him on the right is New Holland head of industry affairs, Gene Hemphill. We were there to tape a video for Jay’s website which should be published there sometime in the coming weeks.

Jay has a New Holland Boomer to move cars around in his garage. He’s got quite a collection (over 100). He likes the fact that New Holland has been a leader in promoting the use of biodiesel.

One of them will be running on 100% biodiesel which he had custom designed by General Motors. It’s called the EcoJet. It actually has a jet engine in it and it’s scheduled to go on tour nationally at the end of the month.

So Jay did his video segment with Joe Jobe and they talked biodiesel. I got to talk with Jay afterward and have a short interview with him that you can listen to. Jay says that making fuel out of a renewable resource like soybeans just makes sense for America. As he says on his website regarding his EcoJet, “It’s the perfect vehicle for the harvest season.”

Here’s my interview with Jay Leno: Interview with Jay Leno on Renewable Fuels

I took photos while I was on location at the Garage which you can find here:

Jay Leno’s Garage Videotaping Photo Album

Audio, Biodiesel

Indiana Solar Project Opens

John Davis

Indiana’s first privately-owned building with an integrated commercial solar tile project will soon open, helped by a grant from the state’s energy program.

According to this story posted on Sys-con.com, the building is in Connersville:

Green EnergyThe project, a state of the art dental center located in the city of Connersville, Indiana — The Christie Family Dentistry — featuring some of the most technologically advanced dental equipment, will now be the first in the state to be powered by solar energy with this newly installed 20-kilowatt solar roof. This 20-kilowatt system will be one of the largest photovoltaic projects in Indiana and will provide up to one-half of the facility’s power requirements. This will be the first solar installation in Indiana to utilize solar roof tiles instead of standard panels.

A group called Life Quality Systems, LLC, a member of the Green Energy Collaborative, built the photovoltaic system. You can check out more about them by clicking here.

Miscellaneous

Doggett Moving to Stop Biodiesel Tax Credit Abuse

John Davis

Cong. Lloyd DoggettCongressman Lloyd Doggett (D-Texas) is expected to introduce soon, possibly on Thursday, a bill that will keep Big Oil from cashing in on the tax credit intended to help biodiesel producers.

This story posted on TheHill.com says the representative wants to reverse an IRS ruling that allows oil companies to claim a $1-a-gallon renewable diesel tax credit by adding animal fat to the traditional refining process.

The National Biodiesel Board, whose members produce biodiesel from soybean and canola oils, opposed the IRS ruling, fearing oil companies would siphon off their own federal support for renewable-fuels production.

Doggett’s news release said the credit was designed to encourage production of “clean-burning, biodegradable diesel fuel
that is fully independent of petroleum products.”

Biodiesel, Government

Biodiesel Plant Coming to Sacramento

John Davis

Primafuel Inc. has gotten the green light from the Port of Sacramento, California to build a 60-million-gallon-a-year biodiesel plant. Check out this story in the Sacramento Bee:

Planned for 14 acres of port land along Industrial Boulevard in West Sacramento, the $60 million to $90 million facility would have nearly 10 times the production capacity of the largest existing biodiesel plant in California.

The plan still must pass through state and local environmental reviews, which have frequently delayed biofuel projects elsewhere in the state. Permitting is expected to take at least six months, followed by up to 18 months for construction. The plant is expected to eventually employ 70 workers.

The biorefinery’s opening could come at the right time. It would put it just upstream from a burgeoning market in the San Francisco Bay area. Check out my previous posts “Biodiesel for Frisco Buses” and “Greening the Gas Pumps.”

Biodiesel