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

Riders on Udall Bus Tour Give Thoughts

John Davis

Udall Bus
The other day, I told you about about how the Morris K. Udall Foundation was making its annual cross-country trip promoting environmental and Native American issues and how this year it is doing under biodiesel power (see my post from June 12th).

The Philadelphia Enquirer caught up with the group at one of its first stops after leaving Washington, DC:

The group arrived Tuesday in Philadelphia from Washington and spent the night in a dormitory at Temple University.
Bret Strogen
“Here in Philadelphia, we’re looking at water quality and biofuels,” said Bret Strogen, 25, a Udall scholar from Berwyn and a graduate of the University of Delaware.

(Eli Zigas, a graduate of Grinnell College in Iowa and a spokesman for the group said) the yellow and green bus with blackened windows draws second looks from the curious.
Eli Zigas
“People stare at the big, shiny bus,” Zigas said. “It’s grabbing attention.”

Savanna Ferguson, 23, a graduate of Whitman College, in Walla Walla, Wash., viewed the trip as an adventure.
Savanna Ferguson
“I’m looking forward to spreading our message, writing for the blog and meeting new people and seeing new places,” she said.

You can view the bus trip blog at http://blogs.udall.gov.

Biodiesel, Government

Greening Waste Management

John Davis

While garbage trucks clean up our trash, too many times the trucks themselves have been polluting the environment through their emissions.

According to this Reuters story, a growing number of cities, including New York and San Francisco, are switching their garbage trucks to the greener fuel fleets to cut soot and greenhouse gases… without any extra costs:

“The greening of the waste management is here, but it’s not going to happen overnight,” said Bruce Parker, director of the National Solid Wastes Management Association.

New York, the largest city in the country, is the latest to pump biofuels into garbage trucks.

Starting July 1, the city will fuel its fleet of 4,500 garbage trucks with a blend of 5 percent biodiesel and 95 percent regular diesel known as “B5,” according to Rocco DiRico, assistant commissioner for support operations in New York City’s Department of Sanitation.

Officials estimate New York’s garbage trucks will emit 3 percent less particulate pollution. San Francisco, which switched 335 garbage trucks to B20 biodiesel, cut its emissions by about 21%.

These big cities might be considered somewhat as latecomers to the biodiesel game as several other cities such as Seattle, Washington; Portland, Oregon; Berkeley, California; and Grand Rapids, Michigan, have been using B20 for several years.

Biodiesel

SunOpta Gains Major Cellulosic Ethanol Investor

John Davis

SunOptaCellulosic ethanol maker SunOpta has received a $30 million investment from international financing firm BlackRock. More details of the plan issuing non-dividend bearing, convertible preferred shares was announced in a company press release:

Murray Burke, President of SunOpta BioProcess Inc. commented, “This financing represents a strong endorsement of our technology and leadership position in cellulosic ethanol. Proceeds will be used to continue development of our leading edge and patented biomass conversion technologies and accelerate efforts to build and operate the world’s first commercial scale facility for the conversion of cellulosic biomass to ethanol.”

Steve Bromley, President and Chief Executive Officer of SunOpta Inc. commented, “We are extremely pleased to have completed this financing and are confident that this positions SunOpta BioProcess Inc. for an exceptionally exciting and prosperous future. SunOpta has been involved in specialized cellulosic biomass solutions for over thirty years, and this represents yet another exciting step in the development of our company.”

Ethanol

Hydrogen-Powered BMW to London Deputy Mayor

John Davis

BMW Hydrogen 7A BMW Hydrogen 7 car… which, of course, runs on hydrogen with its only exhaust being water… was given to Deputy Mayor of London and London Hydrogen Partnership Chair, Nicky Gavron, to raise awareness to what a great alternative energy source hydrogen is.

This article (and the picture shown above) are from a web site called Fuel Cell Works.com. The story says it’s part of BMW’s initiative to promote the role of hydrogen in the economy. UK business leaders and opinion leaders will get similar vehicles to evaluate their performances:

(BMW’s Head of Government and Industrial Affairs,) John Hollis said: “BMW is a pioneer in the development and use of hydrogen as a fuel source and shares the vision of the Mayor and Deputy Mayor that London should be one of the world centres for Hydrogen. In recognition of the work the Mayor’s Office has done in this field, BMW would like it to be the first public organisation in the country to have the use of a Hydrogen 7 car.”

Deputy London Mayor, Nicky Gavron, said: “I am committed to improving the health and quality of life of Londoners through the use of cleaner technologies such as hydrogen vehicles which reduce harmful emissions into the atmosphere. I am pleased to have this opportunity to try out the BMW Hydrogen 7 car. As the Chair of the London Hydrogen Partnership, I want to encourage the use of hydrogen vehicles that emit only water vapour and no harmful emissions, but I also want to be able to talk with first hand experience about these vehicles. I am pleased that BMW has given me this opportunity.”

The BMW Hydrogen 7 has a 260 hp, 12-cylinder engine under the hood and accelerates from zero to 62mph in 9.5 seconds. The only thing holding this modern muscle car back is the electronic governor that limits it to a 143-mph top speed.

Government, Hydrogen

County on Long Island Going to Biodiesel

John Davis

Suffolk County, New York is switching all of its 439 public works trucks to run on biodiesel. The move comes as neighboring Nassau, switched its 270 trucks to the biofuel as of the first of this year.

According to this story in Newsday, officials unanimously approved the move for the end of next year. The switch comes after both counties did their own pilot projects for the last couple of years:

“The beauty of biodiesel is that it burns cleaner and you can use the same infrastructure,” said sponsor Legis. Daniel Losquadro (R-Shoreham). The only difficulty in switching to the new fuel — made up of low-sulfur diesel fuel and 20 percent soybean or waste vegetable oil — is that it initially acts as a detergent when placed into diesel tanks, creating the need to change filters more frequently at first to prevent clogging.

Losquadro said Suffolk was using about 100,000 gallons a year during the biodiesel pilot project and will increase fuel use to 400,000 gallons when the switch is complete.

A spokeswoman for the National Biodiesel Board says the county joins more than 100 cities switching to biodiesel. San Francisco, California, which switched all of its trucks to biodiesel, and Arlington County, Virginia, which is using it in its truck fleet and school buses, afre the two biggest ones to make the change.

Biodiesel, Government