The State of the Ethanol Industry

Chuck Zimmerman

Bob DinneenThe Reverend of Renewable Fuels and the President/CEO of the Renewable Fuels Association, Bob Dinneen, gave his annual State of the Ethanol Industry speech this morning here at the National Ethanol Conference.

Bob says that “We have met the nattering nabobs of negativity, and we have soared.” In a word, he says the ethanol industry is sound. You can listen to Bob’s full speech here and I’ll post a link to the text of his speech as soon as I get it.

Post Update: Here’s a link to the speech: State of the Ethanol Industry (Word doc)

Bob’s speech is filled with current facts and figures on the industry like the fact that in 2006, the ethanol industry:

  • Increased gross output by $41 Billion;
  • Supported the creation of 163,000 jobs, including 20,000 in the manufacturing sector;
  • Put an additional $6.7 Billion into the pockets of American consumers;
  • Added $2.7 Billion in new tax revenue for the federal governmant and $2.2 Billion for state and local treasuries.

    • You can listen to Bob’s opening speech here: Listen to MP3 File Bob Dinneen State of the Industry Speech (25 min MP3)

    Follow all the proceedings of the conference on the National Ethanol Conference blog.

    Audio, Ethanol, National Ethanol Conference, News

    RFA Chairman Opens Conference

    Chuck Zimmerman

    Ron MillerThe opening general session is in progress here at the National Ethanol Conference. Welcoming everyone was Ron Miller, Chairman of the Renewable Fuels Association.

    Ron says 2006 was a “year to remember” in the ethanol industry. He remembered the days when the business wasn’t like it is today. He credits much of the success of the industry to the companies and individuals who have worked together to move forward. He says that 46 percent of the gasoline in America is blended with ethanol.

    He encouraged companies who have not joined RFA to do so. He says that having new members in the growing RFA family will further unify the industry voice and assist in continuing the growth and progress of the business.

    You can listen to Ron’s speech here: Listen to MP3 Ron Miller Opening Speech. (2 min MP3)

    Follow all the proceedings of the conference on the National Ethanol Conference blog.

    Audio, Ethanol, National Ethanol Conference, News

    Expert Says Biodiesel Not to Blame for Indiana Bus Sludge

    John Davis

    Maconaquah School Corporation Recently, a school district in Indiana had to start school late. Normally, that’s not news for Indiana in the wintertime. But the weather was not to blame this time. Officials with the Maconaquah School Corporation in Bunker Hill, IN say some of their buses would not start earlier this month because of a sludge that was clogging the fuel filters. In an article in the Kokoma (IN) Tribune, it was described as the color and consistency of caramel. The problem was traced back to a biodiesel fuel tank where a fungus had grown. That led some media to speculate that the biological products in biodiesel were more susceptible to fungal growth. But Hoon Ge, a contract expert for the National Biodiesel Board from the MEG Corp. in Wayzata, MN, says it’s not the bio part that caused the fungus.

    MEG Corp “Microbial fungus problems will happen in ANY diesel fuel, especially with ultra-low sulfur diesel” Ge says. “Sulfur actually inhibits [the growth of microbial fungi].” Ge says it is usually the presence of water that really gets the “bugs” growing.

    He says it is an easy problem to fix and prevent. “The first thing is good housekeeping: eliminate any water. If you still see fungal growth [treat it with a biocicde].”

    A specialist in Indiana did just that and had the problem cleared up in no time.

    Check out my entire interview with Hoon Ge: Listen to MP3 Interview with Hoon
    Ge    . (6 min MP3)

    Biodiesel

    Aventine Markets for Virgin Ventures

    Cindy Zimmerman

    VirginTwo ethanol plants backed by Sir Richard Branson’s Virgin Group have joined the marketing alliance of Pekin, Illinois’ Aventine Renewable Energy Holdings, Inc.

    AventineAventine will market all of the ethanol produced by Indiana Bio-Energy of Bluffton, Indiana and Ethanol Grain Processors, LLC of Obion, Tennessee when the facilities are completed next year. Both are 100 million gallon per year nameplate facilities.

    The majority investor for the two plants is VBV LLC, an affiliate of Sir Richard Branson’s Virgin Group and by Bioverda International Holdings Limited, a subsidiary of NTR plc of Dublin, Ireland. VBV is intended to be the vehicle through which Virgin and Bioverda make a number of investments in the biofuels sector.

    Ethanol, News

    Many Farmers Eye More Ears

    Cindy Zimmerman

    While U.S. farmers are undoubtedly planning to increase corn acreage this year, the higher prices are exciting farmers outside the country as well.

    According to this Associated Press report, corn farmers in Mexico and Latin America are gearing up to increase acreage to cash in on the potential for a greater need for corn worldwide as more U.S. corn goes into ethanol production. That could mean a great deal for struggling farmers in many countries.

    Brazil and Argentina, the Western Hemisphere’s biggest corn exporters after the U.S., are expecting near-record harvests in 2007. Also in the top 10 is Mexico, corn’s birthplace, and farmers here are rapidly boosting production.

    Brazil, whose ethanol industry is fueled mostly by sugar cane, is also working on an agreement with the U.S. to share scientific research and development for biofuels.

    Mexican farmers who now plant corn on 21 million acres are proposing expanding that by 4.3 million acres this year alone. They also want the government to fund the irrigation of another 1.9 million acres, said Carlos Salazar of the National Confederation of Mexican Corn Growers.

    Ethanol, International, News

    National Ethanol Conference Overview

    Chuck Zimmerman

    Bob DineenThe National Ethanol Conference is underway in Tucson, AZ. Today is golf tournament day and RFA President and CEO, Bob Dinneen, welcomed everyone before they headed out on the course.

    I interviewed Bob right before the start to get an overview of what takes place at the annual Conference. One of the things he says that I think is interesting is that that sales are made here for up to 70 percent of the ethanol sold during the summer months.

    You can listen to my interview with Bob here: Listen to MP3 Interview with Bob Dinneen. (4 min MP3)

    Audio, Ethanol, National Ethanol Conference

    Ethanol Enhances Explorer’s Education Efforts

    Cindy Zimmerman

    e-podcastIn this edition of “Fill Up, Feel Good” we explore an explorer’s efforts to educate people about global climate change and how ethanol is helping.

    Artic explorer Will Steger is leading a 1200-mile, four-month-long dogsled expedition across the Canadian Arctic’s Baffin Island. Ethanol plant builder Fagen, Inc., and the Ethanol Promotion and Information Council are the primary sponsors of Global Warming 101. More information, regular updates, and educational information from the expedition can be found at www.globalwarming101.com.

    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. (5:00 MP3 File)

    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, global warming, News

    Wood Ethanol Could Help Prevent Forest Fires

    Cindy Zimmerman

    Risbrudt Making ethanol from wood could help prevent forest fires.

    The Wisconsin State Journal did an interview with Chris Risbrudt, director of the U.S. Forest Products Laboratory in Madison, about that potential. Risbrudt says ethanol is a possible solution to thinning the smaller trees that lead to forest fires.

    Q: So U.S. forests need to be thinned?

    A: Yes. That’s one reason we spent $1.3 billion fighting forest fires (last) year in the Forest Service; because nature is trying to remove that biomass and get back to the amount it should have. If we thin it to prevent or reduce the impacts of wild fire, it costs us $1,000 per acre because we’re not making many products out of that stuff. We’re trying to figure out how to make products out of that so we can reduce the cost of thinning national forests down to zero.

    Q: What products are you working on that would come from that surplus biomass?

    A: Ethanol is the big one we’re working on right now. It’s got huge potential. But trees are made up of three major components: lignan, which is the glue, hemicellulose and cellulose. And they’re just sugar molecules strung together.

    But (with) the way the tree puts them together, it’s very hard to take it back apart efficiently, so we’re working on that. In fact, the Department of Energy is also working on it, funding projects. They call it the recalcitrant cellulose problem. It just doesn’t want to break down back into sugar very easily.

    Q: How close are you to a solution?

    A: We’ve patented a strain of yeast called pichia stipitis and licensed it to a company called Xethanol Corp. and they’re building plants right now to make cellulosic ethanol.

    Risbrudt says it’s not commerically profitable yet, but they are working on it.

    Cellulosic, Ethanol, News

    Oil Giant Looks to the Sun for Energy

    John Davis

    Officials with the government of Abu Dhabi say they will build a $350 million solar power plant… a first for the oil-producing region. ArabianBusiness.com reports the 500 megawatt plant is expected to be up and running by 2009 in an attempt by the United Arab Emirate member to cut its own dependence on, ironically enough, oil:

    “We … do not want to be 100 per cent dependent on (hydrocarbon power), [Sultan al-Jaber, chief executive of state-owned Abu Dhabi Future Energy Co.] said.

    “We have an economic development programme dedicated to establishing an entirely new economic sector focused on alternative energy and sustainable technologies,” he said.

    Miscellaneous

    USDA: Biodiesel to See Spike, then Level Off

    John Davis

    Ethanol is still the king of biofuels in the U.S., but biodiesel is making, and will continue to make, big gains… that’s according to a USDA long-term projection reported on CattleNetwork.com:

    Biodiesel production capacity and output have increased rapidly in the past 2 years and are projected to rise rapidly again in 2007/08. Slower growth is then projected for several years, with biodiesel output leveling off beyond 2010/11 as higher soybean oil prices reduce profitability. At its projected high of 700 million gallons, biodiesel uses about 23 percent of soybean oil production, but accounts for less than 2 percent of highway diesel fuel use in the United States.

    The story goes on to say that most of the U.S. biofuel expansion over the next few years will be dominated by ethanol produced from corn.

    Biodiesel, Ethanol, News