Ethanol Pioneer Passes Away

Cindy Zimmerman

Badger State EthanolThe CEO of Wisconsin’s Badger State Ethanol died on Sunday of an apparent heart attack at the age of 71.

John Malchine was a co-founder of the ethanol plant and served as chairman of its board since May 2000. The facility began production in November 2002. He was also one of the original board members of the Ethanol Promotion and Information Council.

The Journal-Times of Racine, near Malchine’s hometown of Norway, has a good article about him.

Domestic Fuel reporter Chuck Zimmerman interviewed Malchine last year at the Indy 500.

EPIC, Ethanol, News

Woody Biomass Grants

Cindy Zimmerman

USDA The US Department of Agriculture has awarded $6.2 million in grants to more than two dozen small businesses and community groups to develop innovative uses for woody biomass, including renewable energy and new products, from national forests.

The grants will help create markets for small-diameter material and low-valued trees removed from forest restoration activities, such as reducing hazardous fuels, handling insect and diseased conditions, or treating forestlands impacted by catastrophic weather.

The Forest Service, a USDA agency, selected 26 small businesses and community groups as grant recipients. Awarded grants ranged from nearly $125,000 to $250,000. According to requirements, all 26 recipients provided at least 20 percent of the total project cost. Non-federal matching funds ranged from $62,500 to more than $2 million per project, for a total of almost $12 million.

A listing of all grant recipients can be found on USDA’s website.

Cellulosic, Government, News

Ethanol Wins in Sebring

Cindy Zimmerman

Sebring Ethanol-enriched fuel was a clear winner at the 55th running of the 12 Hours of Sebring, the first time the renewable fuel was used in an endurance race format. The LMP2 class was won by Andretti Green Racing featuring the Acura ARX, while Corvette Racing took a first in the GT1 class. For the first time ever, both cars used a 10 percent ethanol-enriched blend.

In January, the Ethanol Promotion and Information Council (EPIC) along with the American Le Mans Series, announced that E10 would become, “the official ethanol-enriched fuel” of the series.

“Ethanol has once again demonstrated its performance pedigree in the most demanding environment in motorsports,” said Tom Slunecka, executive director of EPIC. “Ethanol demand has been spurred, in part, by consumers’ growing confidence of ethanol. Nothing demonstrates the performance benefits of ethanol better than high tech race cars under the lights at Sebring.”

The next round of the American Le Mans Series is the Acura Sports Car Challenge of St. Petersburg. The race will start at 5:05 p.m. ET on Saturday, March 31.

EPIC, Ethanol, News, Racing

Renewable Fuels Research Center Dedicted to Sen. Lugar

Cindy Zimmerman

Dick LugarA newly created renewable energy center at IUPUI has been named after Indiana Senator Richard Lugar.

In a press release, IUPUI Chancellor Charles R. Bantz said the campus wanted to name the center for Indiana’s senior United States Senator because of Lugar’s steadfast leadership on renewable energy issues.

“Developments at the federal level underscore the growing awareness that renewable energy will play a leading role in ensuring U.S. energy independence,” Bantz said. “The creation of the Richard G. Lugar Renewable Energy Center is a direct response to that recognition. Senator Lugar’s strong support for renewable energy research has had an immeasurable influence on our nation’s collective thinking about the need for energy security.”

During dedication ceremonies on Monday, Senator Lugar had some strong words for critics of ethanol, according to Indiana’s Hoosier Ag Today radio network.

“Eighty percent of the world’s oil supply is controlled by governments. Oil companies and the forces of supply and demand do not determine the price of oil.” He said this situation poses a security threat for the United States, “We need to understand that we are talking about the ability of our country to continue on in the lifestyle to which we are accustomed.”

Ethanol, News

Historical Perspective on Feed Prices

Cindy Zimmerman

Tufts UniversityA new study by the Global Development and Environment Institute at Tufts University in Maryland offers some interesting perspective on the issue of feed prices. In the report “Industrial Livestock Companies’ Gains from Low Feed Prices, (1997-2005)” the authors state that, “With rising demand for corn-based ethanol, representatives of many of the nation’s leading meat companies have expressed concern over the rising price of animal feed, which has increased significantly with the price increases for its two principal components, corn and soybeans.”

Tufts UniversityFeed prices have indeed increased significantly. As feed costs generally account for more than half of operating costs for industrial operations, higher prices can have an important impact on the bottom line for these companies. So too can low prices. Any discussion of today’s high prices should take into account the extent to which these same firms have benefited from many years of feed that was priced well below what it cost to produce. In the nine years that followed the passage of the 1996 Farm Bill, 1997-2005, corn was priced 23% below average production costs, while soybean prices were 15% below farmers’ costs. As a result, feed prices were an estimated 21% below production costs for poultry and 26% below costs for the hog industry. We estimate cumulative savings to the broiler chicken industry from below-cost feed in those years to be $11.25 billion, while industrial hog operations saved an estimated $8.5 billion. The leading firms gained a great deal during those years from U.S. agricultural policies that helped lower the prices for many agricultural commodities.

Ethanol, News

Florida Needs Ethanol

Cindy Zimmerman

Ethanol BannerAn aerial promotion campaign for ethanol in the Sunshine State took off this past weekend over the racetrack at Sebring, the theme parks in Orlando and the beaches of Fort Meyers.

The Ethanol Promotion and Information Council will be flying this banner over cities from Miami to Jacksonville in the next few weeks to get the message out that Florida Needs Ethanol.

According to EPIC, ethanol is currently blended in 46% of our nation’s fuel supply with the majority of the fuel blended with 10% ethanol. But in many major cities, such as Tampa, consumers currently do not have access to purchase even a 10 percent ethanol blend, although it can be used in any of today’s cars.

“Ethanol’s performance and environmental benefits resonate with consumers,” said Reece Nanfito, EPIC’s senior director of marketing. “It may take time, but ethanol-enriched fuels need to be a part of Florida’s energy future.”

Florida Commissioner of Agriculture Charles Bronson agrees. “As we develop cellulosic technology in Florida, I think that’s what we are going to be the most well-known for,” said Bronson. “We working with the University of Florida to find out which crops will be most beneficial to produce ethanol.”

Bronson is working to get the Florida Legislature to fund more incentives for biofuels production and research in Florida. He also sees a bright future for biodiesel production in the state. “Research I have seen on blue-green algae says that may be the very one that’s going to take over biodiesel because you can make so much diesel out of that blue green algae and we can grow a lot of that in Florida. So I think we are going to lead the nation in that.”

Listen to an interview with Commissioner Bronson from Katherine Bush with Southeast Agnet. Listen to MP3 File Charles Bronson (2 min MP3)

Audio, Biodiesel, EPIC, Ethanol, News, Promotion, Research

Summit Calls for Greater Biodiesel Acceptance

John Davis

Daimler logo DaimlerChrysler was the sponsor of a recent summit that looked to gain widespread acceptance of 20% biodiesel by the makers of engines and vehicles. The auto giant also asked the group to come up with a viable fuel standard for the B20 finished blend.

NBB logo In a press release from the National Biodiesel Board, the summit looked for a defined standard for B20. An American Society for Testing and Materials (ASTM) specification already exists for 100% biodiesel. The B20 standard would give engine makers something for which they can design:

“Biodiesel represents a huge opportunity to address some of our nation’s toughest energy, environmental and economic challenges,” said Deborah Morrissett, DaimlerChrysler’s VP of Regulatory Affairs. “We know this is the right thing to do – so the goal now is to develop a national B20 standard that can be universally applied to all diesel vehicles, both on road and in production, to confidently support higher blends of biodiesel such as B20.”

“The B100 standard has been designed so that it is protective of B20 and lower blends,” said Steve Howell, NBB Technical Director and Chairman of the ASTM Task Force on biodiesel standards, “but regulators need us to approve a finished blend standard to hold people to, and engine makers need something they can design to.”

The manufacturers, policy makers, regulators and biodiesel industry representatives who met for this summit also identified several other areas to bolster B20 including long-term effects of emissions control and after-treatment devices, long-term engine durability testing, and greater fuel quality monitoring.

Biodiesel

Dow Testing Biodiesel By-product

John Davis

Dow logo The Dow Chemical Company has announced what it characterizes as a “significant milestone in its pursuit of sustainable chemistries.”

In a press release on the company web site, Dow says it is conducting consumer trials using the glycerin from the production of biodiesel. Dow gets Propylene Glycol Renewable… or PGR… from the biodiesel-based glycerin. The PGR is expected to be used in unsaturated polyester resins. Those UPRs are used in a wide variety products… from boat hulls to bathrooms:

“PGR provides environmental benefits and is cost competitive. It also offers the same outstanding characteristics in terms of quality and performance as our existing PG products,” says Mady Bricco, global product director, Propylene Oxide / Propylene Glycol. “This breakthrough technology underscores Dow’s commitment to deliver products and process technologies that bolster the Company’s sustainable chemistry aspirations. At the same time, PGR further strengthens our performance business portfolio, delivering an important building block material for a variety of industrial applications.”

Plus, PGRs are better for the environment because they’re made from renewable sources, and less water is used in their production.

Biodiesel

Happy National Biodiesel Day!

John Davis

Rudolph Diesel Today is National Biodiesel Day. It is also the birthday of Rudolph Diesel, the inventor of the diesel engine. Coincedence? No… early versions of Diesel’s engine in the late 1800’s ran on peanut oil, and in 1912, he said “the use of vegetable oils for engine fuels may seem insignificant today, but such oils may become, in the course of time, as important as petroleum and the coal tar products of the present time.”

NBB logo The National Biodiesel Board points out the increased demand for biodiesel today as the fruition of Diesel’s vision:


* In 2006, biodiesel production reached 225 million gallons – nearly three times the 75 million gallons produced just one year earlier. There are 105 plants operating today, each one adding sorely needed fuel refining capacity in America.
* 62% of U.S. consumers are willing to pay more per gallon for biodiesel than regular fuel, with most consumers willing to pay 1 to 10 cents more.
* More than four-in-five consumers continue to support a tax incentive that would make biodiesel cost approximately the same as regular diesel.
* While only 3% of consumers surveyed own a diesel vehicle today, 61% say they would consider buying a diesel car because of the benefits of biodiesel.

Biodiesel