DTN Starts Biodiesel Trading Info

John Davis

DTN logoMarket information provider DTN has introduced a biodiesel trading platform. DTN ProphetX Biodiesel Edition provides biodiesel producers and investors with intelligence on agricultural and energy markets.

This news release posted on Grainnet.com says the service also provides pricing information, commentary and other risk management tools:

This edition is for anyone in the emerging biodiesel markets to ensure future profitability and support sound investment decisions.

DTN ProphetX Biodiesel Edition’s risk management tools create user-specific “what if” scenarios to determine gross margin, net profit, break-even prices, exposed production risks and optimal hedging strategies over a 12 month period.

The DTN Biodiesel Crush tools can even assist users in determining the most economical and profitable multi-feedstock selections and ratios for operations and local market conditions.

DTN officials say ProphetX Biodiesel Edition is the only trading platform of its kind out there.

Biodiesel

Learning Through Biodiesel

John Davis

Producing biodiesel is proving to be a valuable tool in teaching students chemistry and how to be friendly to the environment.

For example, one small school in Northern Michigan has an FFA group that is producing biodiesel from leftover restaurant grease and oil. This story in the Huron (MI) Daily Tribune says FFA members at North Huron High School, along with their adviser and science teacher Clark Brock, have been using a biodiesel maker bought by the FFA at a convention:

Brock said his students are learning quite a bit from the hands-on experience of producing the fuel.

“They’re learning a lot of chemistry,” he said. “They’re learning the process of how to take used vegetable oil and separate the triesters from the glycerin.” Students also are learning how to determine the quality of the vegetable oil that goes into making the biodiesel.

“They test the oil for fatty free acids,” Brock said. “If the oil is used for too long, or if there’s too much fat in it, the oil isn’t useable.”

There are plans to test the biodiesel in several vehicles this summer.

Now there’s a class project worth its weight.

Biodiesel

Watchdog Group Questions Study Credibility

Cindy Zimmerman

watchdog A consumer watchdog group is questioning the credibility of a widely reported Stanford University study warning that ethanol use could be harmful.

The Foundation for Taxpayer and Consumer Rights says the school’s ties to ExxonMobil make the study’s findings “difficult to accept.”

ExxonMobil has given $100 million to fund Stanford’s Global Climate and Energy Program (GCEP). Though the ethanol study was not directly funded by that program, the author had a three-year grant from GCEP to study the impact of replacing fossil-fuel motor vehicles and electric power plants with hydrogen fuel cell vehicles and power plants.

The public cannot accept the results at face value when ExxonMobil has funded a major energy research program at the university and research results are in line with the giant oil firm’s corporate goals, FTCR said.

ExxonMobil Chairman Rex Tillerson is dismissive of ethanol’s prospects, recently telling Fortune Magazine, “I don’t have a lot of technology to add to moonshine.”

The study based on computer models has received widespread publicity, despite the fact that the model is controversial because it assumes complete conversion to ethanol use rather than partial.

Ethanol, News

Corn Pores Hold Ethanol Promise

Cindy Zimmerman

corn pores Purdue University researchers are opening the pores of corn to try and increase ethanol yield.

According to a Purdue news release, researchers have discovered that particles from cornstalks undergo previously unknown structural changes when processed to produce ethanol, an insight they said will help establish a viable method for large-scale production of ethanol from plant matter.

Their research demonstrates that pretreating corn plant tissue with hot water – an accepted practice that increases ethanol yields 3 to 4 times – works by exposing minute pores of the plant’s cell walls, thus increasing surface area for additional reactions that help break down the cell wall.

Using high-resolution imaging and chemical analyses, the researchers determined that pretreatment opens reactive areas within the cells of the corn stover that were previously overlooked. In the next step of processing, these enlarged pores are more easily attacked by enzymes that convert cellulose into glucose, which is in turn fermented into ethanol by yeast.

Cellulosic, Ethanol, News, Research

A Snappy Pump Promotion

Chuck Zimmerman

Ken Suter and Jeff SimmonsIt’s time for another Indy race. This time in Kansas City. It’ll be the Kansas Lottery Indy 300 this Sunday. This morning though the Ethanol Promotion and Information Council put on another pump promotion at the Snappy Store downtown. Pictured here are Snappy Stores owner, Ken Suter (left), and Jeff Simmons, Team Ethanol driver. They’re posing next to the new Team Ethanol show car which is looking pretty slick.

I’m putting all my photos through the weekend into an online photo album for you. Please feel free to visit: 2007 Kansas Lottery Indy 300 Photo Album

It was a cool, brisk day but the cars lined up to get gas at $2.14/gallon containing 10% ethanol. The price was set by the top qualifying speed at last year’s race. I had a conversation with Ken about the promotion he was running here at the store and what he thought about the work that EPIC is doing. He says that ethanol has been a big boost to his business.

Listen to my interview with Ken: Listen to MP3 Ken Suter Interview (3 min MP3)

Audio, EPIC, News, Promotion

E85 Everywhere

Cindy Zimmerman

CACThe American Lung Association of the Upper Midwest is holding an “E85 Everywhere” rally in the Minnesota State Capitol Rotunda this Friday, April 27.

Governor Tim Pawlenty and a bipartisan gathering of legislators from both the Minnesota Senate and Minnesota House of Representatives will speak on the importance of maintaining the lead in E85 development and on their support for the E85 Everywhere push.

NEVCE85 Everywhere is a public-private partnership which seeks to achieve 1,800 E85 fueling outlets in Minnesota over the next few years. The purpose is to help achieve the state’s 20% ethanol-use goal, enacted by the 2005 legislature. The partnership is also supported by the National Ethanol Vehicle Coalition.

“We have proven E85 and flexible fuel vehicles are a viable alternative to gasoline; one of many choices we have that can combat global climate change and the ever-growing need for energy sources,” stated Tim Gerlach, Vice President of Clean Fuels and Vehicle Technologies at American Lung Association of the Upper Midwest.

E85, Ethanol, Flex Fuel Vehicles, News

Nebraska Rep Calls for Hydrogen Credit

John Davis

Cong. Lee TerryNebraska Congressman Lee Terry is calling on his fellow lawmakers to approve a package that would promote hydrogen as a viable alternative to fossil fuels.

According to this story in the Omaha World-Herald, Terry testified on Capitol Hill that his hometown zoo, Omaha’s Henry Doorly Zoo, is making good use of hydrogen:

Hydrogen fuel cell technology provides power and heats water at the jungle, Rep. Lee Terry, R-Neb., said Tuesday at a congressional hearing.

The zoo’s hydrogen fuel cell is part of a pilot project by the Omaha Public Power District that started in 2001. The utility wants to learn from the experience and is looking at more widespread uses of the devices.

The article goes on to say that Terry wants the federal government do more to promote hydrogen fuel cell technology that produces power through a chemical process without the dangerous waste and emissions produced by nuclear reactions.

Terry’s proposal would extend existing tax credits for the purchase of hydrogen fuel cell equipment and would create new tax credits for using it.

The new tax credits would cover 30 percent of the cost of producing hydrogen, up to $1,500 a year. The measure also would push for the use of the technology in new federal buildings.

Tery adds the tax credits could be what gets the technology really going in this country.

Government, Hydrogen, Legislation

It’s a Dirty Job, But…

John Davis

OK, in full disclosure, I am a huge fan of the Discovery Channel’s “Dirty Jobs.” For those unfamiliar with the show, host Mike Rowe travels the country showing, and doing himself, some of the dirtiest jobs you can imagine… cleaning out septic tanks, gutting fish, you name it.

Apparently, in one episode (one I have to admit I have not seen… bad fan, bad fan) Rowe talks to a guy who makes his own biodiesel from leftover used cooking oil he gets from local restaurants. He’s even converted his vehicle to use a 100% biodiesel mix… and the truck gets 40 miles to the gallon!

Check out this video posted on YouTube and the web site Biodiesel Times:

“>Dirty Jobs

I thought it was pretty cool.

Biodiesel

NBB Fights Tax Incentive Abuse

John Davis

NBB logoThe National Biodiesel Board is vowing to fight what it considers abuse of the biodiesel tax credit. According to a release from the NBB, the original intent of the credit was to help the biodiesel industry get off the ground, but big oil companies now are trying to take advantage of it:

The NBB has been advised of a potential abuse of this program and is determined to see that it is addressed in an expedient manner. Based on discussions with federal tax authorities, blenders and shippers, there is a suspicion that claims for the tax credit may have been submitted or are intended to be submitted in a way that we believe would constitute an improper use of the tax credit. Anecdotal evidence exists which suggests that foreign companies may be sending or planning to send tanker shipments of biodiesel into US ports, adding a small amount of diesel fuel, claiming the blenders credit on all biodiesel gallons in the shipment, and then exporting the shipment outside the United States.

This type of “re-exporting” activity was clearly not intended by the legislative policy and is an inappropriate use of the tax credit.

NBB officials promise to aggressively pursue legislation to close this loophole and keep the credit in the hands of those it was intended to help. They also encourage anyone who has information about questionable credits to contact the Internal Revenue Service at (213) 576-3837.

Biodiesel, Legislation

Ethanol in Ag Hall of Fame

Cindy Zimmerman

2007 Ag Hall of Fame BanquetEthanol and the Indy Racing League will be in the spotlight at the National Agricultural Center & Hall of Fame 2007 Annual Meeting Thursday in Bonner Springs, KS.

Featured speaker for the “Farm-Fueled” event is Tom Slunecka, executive director of the Ethanol Promotion & Information Council. The event will also set the stage for the Kansas Lottery 300 scheduled for this Sunday at the Kansas Speedway, which will be run for the first time on 100 percent fuel-grade ethanol.

EPIC, Ethanol, Indy Racing, News