Yes and No to Brazil Deal

Cindy Zimmerman

The Renewable Fuels Association says yes to promoting a global ethanol market, but no to allowing Brazil to benefit from the U.S. tax credit for ethanol.

RFARFA President Bob Dinneen issued the following statement regarding President Bush’s upcoming meeting with Brazilian President Luiz Inacio Lula da Silva concerning a hemispheric partnership to expand ethanol production.

“Expanding the marketplace for ethanol around the globe is an admirable goal and one that should be commended and explored. But it must be done in the context of fair trade. No effort to encourage ethanol production in the Western Hemisphere or around the world should require American taxpayers to bear the burden. Yet, that is exactly what President Lula and the Brazilian government are asking for in calling on President Bush to end the credit offset which prevents U.S. taxpayer subsidies for foreign ethanol. The credit offset poses no barrier to Brazilian ethanol which has enjoyed more than 30 years of government support dating back to the military dictatorships of the 1970s.

“Simply put, the credit offset merely asks Brazilian ethanol producers to pay back the tax incentive for which their product is eligible. Congress correctly put this offset in place to prevent foreign ethanol industries access to American taxpayer dollars while not preventing access to the U.S. market. Last year, the U.S. imported 433 million gallons of ethanol straight from the shores of Brazil, representing roughly 10 percent of Brazil’s annual production. Clearly, Brazilian imports compete quite effectively when needed.

“We applaud President Bush’s effort to expand the role of renewable fuels around the world. And he is right to tell the Brazilians that discussion of the credit offset is off the table. While the U.S. ethanol industry wants to see a world market for ethanol develop, it ought not come out of the pockets of Americans.”

Ethanol, International, News

Racing Into History on Alternatives… for a Cause

John Davis

Meet the latest racer in the alternative fuel racing game… the man behind the wheel of the spiced red, number 24 Volkswagen Jetta TDI… Jim Osborn, the President of Chili Pepper Racing.

“We race in what’s considered the most relevant racing series in North America. It’s called the Speed World Challenge Touring Car Series.” Osborn explains that they take street cars, modify them a bit to make them faster and safer, and basically hit the road in much the same car as what would roll off a dealer’s show room. “The premise of the series is to basically have cars you recognize.”

Chili 4 Osborn says the first race of the season is the Twelve Hours of Sebring on March 17th on Speed TV. It will be the first time a production-based alternative fuel (diesel) car will race in professional road race series in the United States.

Chili 5 Osborn says the alternative portion is the fact that his VW runs on diesel… an alternative to the racing petrol most other racers use. And he says since it does run on diesel, there is always the possibility of another alternative… biodiesel… could make it into his racer. “The performance issues with diesel and biodiesel are sonmething at their infancies in the United States, and something we’d like to puruse.”

Chili 6While he likes to grab the checkered flag, Osborn says his racing has a bigger purpose. Chili Pepper Racing has been racing for charities for years. Now, he races for a more personal purpose. Last year, he lost his eight-week-old infant son to cancer. “Over the winter, we took some of this pain we had were feeling and tried to turn it into some positive energy and formed the Austin Hatcher Foundation for Pediatric Cancer.” Osborn says they’ll race this season in “Hatch’s” name.

He promises some news of special significance for readers of this web site for the race at Sebring. Stay tuned!

Listen to the entire interview with Osborn: Listen to MP3 File Osborn Interview (6 min MP3)

Audio, Biodiesel, Racing

Biodiesel Providing Energy

John Davis

The first all-biodiesel-powered power plant in the country has started producing electricity in Texas. According to this story posted on Manufacturing.net, Biofuels Power Corp. is producing and selling electricity from its plant in Oak Ridge North, Texas.

SRC The plant will produce up to five megawatts of electricity and will run on biodiesel from a Safe Renewables Corp. refinery just two miles away:

According to Ken Crimmins, COO of Biofuels Power, the new Oak Ridge North plant will help environmentally conscious companies reduce their air pollution footprint by satisfying their electricity needs with carbon neutral and 100% renewable fuels.

The article goes on to say that Biofuels Power Corp. is building a 10-megawatt electric plant on the site of the Safe Renewables Corp. refinery.

Biodiesel

Seattle Biodiesel Producer Achieves Rare Quality Standard

John Davis

Imperium Imperium Renewables has announced it has achieved a BQ-9000 certification for its Seattle-based refineries. According to a company press release, the certification is a measure of fuel quality requiring companies to have approved quality management systems, including storage, sampling, testing, blending, shipping, distribution, and fuel management practices:

“From day one our pledge was to produce biodiesel from vegetable oil that would meet or exceed the quality and performance of petroleum diesel,” said John Plaza, Founder and President of Imperium Renewables. “BQ-9000 builds on the work we do to provide ASTM specified products to validate to our customers and distributors that our fuel meets the same quality standards as petroleum diesel. Unlike petroleum diesel, however, our fuel is made 100 percent from renewable energy resources, such as soy and canola oil, and emits up to 78 percent less carbon dioxide. Same quality, just better for our planet.”

Imperium has been grabbing some recent headlines, at least on this web site, over the past month or so. Previously we told you how Imperium had set a possible record for investment with $214 million. Its biodiesel has also made its way into the gas pumps at Safeway stores, and the company is about to open a 100-million-gallon-a-year refinery in Washington state… the largest in the country.

Biodiesel

Let the Market Sort it Out

Cindy Zimmerman

Cindy and Dean To anyone concerned about high grain prices, the impact of biofuels on the livestock industry, or whether we will have enough corn to meet all needs, Dean Kleckner has just one message: “Let the market sort it out.”

Kleckner is the chairman of Truth About Trade & Technology, an industry group that is pro-trade and pro-biotechnology. He is also a hog and grain farmer from Iowa who served for 14 years as president of the country’s largest farm organization, the American Farm Bureau Federation. During an interview at the 2007 Commodity Classic, he said his biggest concern about the biofuels boom and competition for corn is the government.

“Will there be enough corn?” he asks. “My short answer is yes, if the darn government just stays out of it.” In other words, let the market sort it out. “The market will make the decisions if we let it.”

He expects the next few years to be tough for livestock producers with higher grain prices. As a hog farmer, Kleckner says “I’m concerned about it,” but he believes it will all work out in the long run.

Listen to an interview with Dean here: Listen to MP3 File Dean Kleckner Interview (12 min MP3)

Audio, Biodiesel, Commodity Classic, Ethanol, Government, News

SD Ethanol Leaders to Present at World Biofuels Congress

John Davis

World Biofuels Congress
Two senior executives from South Dakota-based Broin Companies… the largest dry mill ethanol producer in the U.S…. will be presenting at the upcoming World Biofuels Markets Congress and Expo in Brussels, Belgium, March 6-9th.

Broin logo According to a Broin press release, Mike Muston, Executive Vice President of Corporate Development will talk about cellulosic ethanol and Jeff Laut, Executive Vice President of Corporate Operations will participate in a panel discussion on biorefineries and by-products. They’ll be just two of the more than 1300 participants from 54 countries expected at the three-day event.

Broin operates 19 ethanol refineries in the U.S., marketing more than a billion gallons of ethanol a year.

Ethanol, International, News

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