Chavez Shifts Gears on Ethanol

Cindy Zimmerman

ChavezVenezuela President Hugo Chavez has appeared to shift his stance on ethanol this week, at least as it relates to Brazil.

The Associated Press reports that Chavez is only opposed to U.S. plans to increase production of ethanol made from corn.

“We aren’t against biofuels,” Chavez said at a two-day South American energy summit that ended Tuesday. “In fact we want to import ethanol from Brazil.” He said Venezuela needs some 200,000 barrels of ethanol a day to be used as a fuel additive.

Chavez recently criticized an agreement between the United States and Brazil to promote ethanol production, saying that it would lead to starvation. Brazilian President Luiz Inacio Lula da Silva disagrees.

“The truth is that biofuel is a way out for the poor countries of the world,” he said. “The problem of food in the world now is not lack of production of food. It’s a lack of income for people to buy food.”

Comments from both leaders came at the conclusion of a South American energy summit this week.

Ethanol, International, News

Ethanol Fires Back at Stanford Study

Cindy Zimmerman

AceThe ethanol industry is firing back over headlined reports of a Stanford University computer model prediction that indicates “nearly 200 more people would die yearly from respiratory problems if all vehicles in the United States ran on a mostly ethanol fuel blend by 2020.”

Officials with the American Coalition for Ethanol stated that, “Air quality has improved in every city, county, and state that has switched from straight gasoline use to ethanol blended fuel. Those are real world results, not predictions.”

“Ethanol’s record as a clean air fuel is unmatched. The track record for the predictive models issued by ethanol opponents – especially with respect to California predictions – has been less than stellar,” ACE’s statement continues.

The Stanford study, which was published in Wednesday’s online edition of the peer-reviewed journal Environmental Science and Technology, is based on all cars using a blend of 85 percent ethanol, a scenario that could not happen within the foreseeable future, if ever. First, it would require that all cars on the road be flex-fuel vehicles, capable of using E85. Only about five million are currently on the road and auto makers have no plans to make all future vehicles flex-fuel. Secondly, there is no foreseeable way that the ethanol industry, even with cellulosic, could supply as much ethanol as the study assumes.

Ethanol, News

Small Wind Tax Break

John Davis

Those who generate their own power through small windmills could get a tax credit for the cost of the turbines.
Sen SalazarSen Smith
According to this article posted on Compositeworld.com, the Rural Wind Energy Development Act is primarily sponsored by U.S. Senators Ken Salazar (D-CO), and Gordon Smith (R-OR), and co-sponsored by Sens. Byron Dorgan (D-ND) and Larry Craig (R-ID):

The “Rural Wind Energy Development Act” (S. 673) would provide a federal tax credit of $1,500 per 0.5 kilowatt (kW) of capacity to purchasers of small wind systems nationwide. This five-year credit would apply to all wind systems with capacities of less than 100 kW that are used to power individual homes, farms or small businesses.

The American Wind Energy Association is praising the bill:

AWEA logo“There is a great satisfaction in gen-erating your own electricity and do-ing so in a way that reduces global warming emissions and strengthens the country’s energy security,” says AWEA executive director Randall Swisher. “The bill proposed by senators Salazar and Smith empowers consumers and is good energy policy.”

Wind

Alberta to Get Big Biofuel Refinery

John Davis

Developers say they will build North America’s largest biofuel refinery… capable of producing about 100 million gallons a year of ethanol, biodiesel, and canola oil… near Innisfail, Alberta.

This story in the Toronto Star says the $400 million plant will be built by private equity firms Riverstone Holdings and Carlyle Group and privately held Dominion Energy in an area where a lot of grain is grown:

“I don’t know if there’s (a plant) like it anywhere right now, but I’m sure there will be,” Curtis Chandler, president of Dominion Energy, said in an interview.

“It made sense to locate them all on one facility, from … not only a capital cost, but an operating cost on a go-forward basis,” he said.

Innisfail, which is in Canada’s main grain-producing region, was chosen for its skilled work force and its proximity to Canadian Pacific rail service, Stephen Schaefer, managing director of Riverstone, said in a statement.

Biodiesel, Ethanol

DOE Funds ADM-Purdue Project

Cindy Zimmerman

ADM A joint bioenergy project of Archer Daniels Midland Company (ADM) and Purdue University has been selected to receive funding by the U.S. Department of Energy to further the commercialization of cellulosic ethanol.

According to a news release, the project is focused on commercializing the use of highly-efficient yeast which converts cellulosic materials into ethanol through fermentation.

The development of improved fermentation organisms is a crucial step in the commercialization of cellulosic ethanol. In order to be cost-efficient and work in commercial-scale processing, such organisms must be able to produce high concentrations of ethanol from hexose and pentose sugar streams that can be derived from a wide range of plant lignocellulosic material, such as fibers, hulls, straws, soft and hardwoods.

Cellulosic, Ethanol, Government, News, Research

Ethanol Plant for BioTown

Cindy Zimmerman

VeraSunSouth Dakota-based VeraSun Energy Corp. has officially announced plans to build an ethanol biorefinery in Reynolds, also known as BioTown USA.

“VeraSun is making a commitment to Reynolds and the BioTown(TM) project that continues our state’s focus on renewable energy sources,” said Indiana Governor Mitch Daniels in a press release from VeraSun.

BioTownBioTown USA was launched in 2005 and is the first community in the nation working to meet all of its energy needs through the use of biorenewable resources.

Intentions for the plant were first publicized in January, site preparation is expected to begin next month. Construction of the plant will take approximately 16 months. The plant is being engineered by ICM, Inc., of Colwich, Kansas, and the general contractor is Fagen, Inc., of Granite Falls, Minnesota.

Last week, VeraSun Energy Corporation was named South Dakota’s Business of the Year by the South Dakota Chamber of Commerce & Industry.

Ethanol, Facilities, News

NBB Blasts Conoco/Tyson Biodiesel Plans

John Davis

Conoco logoTyson
Oil company giant ConocoPhillips is teaming up with food giant Tyson to start selling biodiesel. According to this article on CNet News.com, the project would combine a plentiful resource Tyson has… animal fat… with a seemingly plentiful ConocoPhillips resource… money:

Tyson formed a renewable-energy division last year. The company generates about 2.3 billion pounds of animal fat a year in its operations. The companies estimate that the operation could result in 175 million gallons of biodiesel a year. ConocoPhillips said it will invest $100 million in this project.

While you might think this would be good news, the National Biodiesel Board is not happy. According to this article in the Houston Chronicle, ConocoPhillips would be able to take advantage of a recent IRS decision that allows big oil companies to cash in on the nearly $1-a-gallon tax credit originally created to help the fledgling biodiesel industry get off the ground (see my previous post on the subject here):

NBB logo“We’re not opposed to refiners converting a portion of their capacity into renewable capacity,” Joe Jobe, CEO of the National Biodiesel Board, said during a conference call with reporters Monday. “But we believe it’s bad public policy for taxpayers who are paying as much as $3 for a gallon of gasoline to have their taxes pay another dollar for this.”

ConocoPhillips officials say they need the money to keep the operation profitable.

Biodiesel

AFVi Awards

Cindy Zimmerman

AFVIThe Alternative Fuel Vehicle Institute (AFVi) recently recognized outstanding leadership in the alternative fuels and vehicles industry at the 13th Alternative Fuels & Vehicles National Conference & Expo 2007.

General Motors received the Green Award for the “Live Green Go Yellow” marketing and advertising campaign.

AFVIAmerican Honda was honored with the Green Fleet Award for “leadership and consistency in manufacturing vehicles that provide fleets and customers with the greenest choices around.” Pictured, Dan Bonawitz, Vice President of Corporate Planning and Logistics for American Honda, accepted this award from actor Larry Hagman and AFVi Executive Director Annalloyd Thomason.

The Industry Innovation Award was presented to James Harger of Clean Energy, Westport Innovations CEO Mike Gallagher, Mark Zucker and Andy Douglas of Inland Kenworth.

The Industry Pioneer of the year was Anne Smith with the Southern California Gas Company, and philanthropist T. Boone Pickens was honored with the Industry Vision Award.

More information and photos available here.

Car Makers, conferences, E85, Energy, Flex Fuel Vehicles, News

POET to Open 20th Plant

Cindy Zimmerman

Poet Energy™ is preparing for the grand opening of its 20th ethanol production facility next month in Iowa.

Poet According to a company release, the grand opening event for POET Biorefining in Corning, Iowa will be held on May 4.

The $105 million ethanol production facility in Corning will be the 20th POET production facility and their seventh in the state of Iowa. Once Corning is operational, the annual production capacity of POET will be over one billion gallons.

The event will begin with a flyover from the Vanguard Squadron – the world’s only 100 percent ethanol-powered aerobatic fleet – and guests will include U.S. Senator Chuck Grassley and Iowa Secretary of Agriculture Bill Northey.

Ethanol, Facilities, News

Leaders Agree on Biofuels Deal

Cindy Zimmerman

Chavez-LulaVenezuela’s Hugo Chavez and Brazil’s Luiz Inacio Lula da Silva apparently put their heads together and worked out a compromise on ethanol at this week’s first-ever South American Energy Summit.

Bloomberg reports that South America’s 11 nations have agreed to promote biofuels production to supplement oil output in the region.

According to the story, leaders at the Summit, “agreed to create a regional alliance, to be known as the South American Union, as well as an energy council to regulate and promote cooperation in the sector.”

The summit leaders debated for an entire day over what media reports called an “impasse over conflicting views on the issue by Venezuela and Brazil.” However, Chavez denied that, saying he believes “ethanol is a valid strategy as long as it doesn’t affect food production.”

Venezuela is the world’s eighth-largest exporter of crude while Brazil is the world’s largest exporter of ethanol.

Ethanol, International, News