Presidents Talk Biofuels

Cindy Zimmerman

Bush Brazil During a press conference Friday with Brazilian President Luiz Inacio Lula da Silva, President Bush said, “I hope the citizens of Brazil, like the citizens of the United States, are as optimistic about the future as these two Presidents are. And one reason we’re optimistic is because we see the bright and real potential for our citizens being able to use alternative sources of energy that will promote the common good.”

The two countries signed a memorandum of understanding Friday that includes joint research to develop commercial cellulosic ethanol, developing industrial biofuels standards and helping Caribbean and Central American countries produce more ethanol. Bush and Lula will meet at Camp David on March 31 to continue discussions.

President Lula noted that the agreement will also include joint development of biodiesel between the two countries. “In the field of ethanol we have an extremely successful program that’s come out of over 30 years of very much work and technological innovation. We are doing the same thing in our betting on biodiesel. By 2010, Brazilian diesel, 5 percent of it will come from native abundant plants in our country, such as African palm, cottonseed, sunflower, castor beans, and many other seeds,” said Lula.

“Also, our biodiesel program has a major social impact. It is aimed at small farmers to family farmers. It will help create jobs and income in the poorest regions of our country, especially in the northeastern semi-arid region, where many of these crops are actually native.”

The agreement makes no mention of the tariff on Brazilian ethanol imports to the United States, which is meant to offset the blenders tax credit for ethanol use that provides an incentive for domestic production and utilization. Bush had said going into the discussions with Brazil that the tariff would remain in place and was not open to negotiation.

Read the entire text of the presidents’ press conference from the White House website.

Biodiesel, Ethanol, International, News

25 x ’25 Action Plan

Cindy Zimmerman

25x25 Leaders from a broad alliance of agricultural, energy, environmental, business and labor groups recently rolled out a set of specific recommendations for reaching an ambitious renewable energy goal: 25 percent of the nation’s energy supply from renewable sources by 2025. Members of the 25x’25 Alliance were at the recent Commodity Classic to answer questions and discuss goals with members of the agriculture industry.

The 25x’25 Action Plan: Charting America’s Energy Future was written by the 28-member 25x’25 Steering Committee based on the consensus reviews and policy recommendations of the more than 400 organizations that have endorsed the 25x’25 vision.

25x25 logoThe Action Plan, which was presented to Congressional leaders, contains 35 specific recommendations that “would cost just five percent of what America spent on imported oil in 2006 and would result in a dramatic increase in new jobs and economic activity, along with significant reductions in oil consumption and global warming emissions.”

The recommendations include expanded research and development for cellulosic biofuels and long-term incentives for renewable electricity generation; new infrastructure for expanding delivery of renewable fuels and renewable energy; new program to ensure increased availability of flex-fueled cars; a new requirement for use of renewable energy by the federal government; new mechanisms for renewable energy credit trading among states, and new funding for renewable energy systems.

Biodiesel, Commodity Classic, Ethanol, Government, News

Feed Fight on the Hill

Cindy Zimmerman

The House Agriculture Subcommittee on Livestock, Dairy, and Poultry held a hearing on Thursday to review the impact of increased biofuels production and higher feed costs on the livestock industry. Congressmen heard from one high-ranking USDA official, six livestock industry representatives and the country’s leading expert on the ethanol co-product known as dried distillers grains which is used as a livestock feed.

Joy PVirtually every livestock representative testifying had a statement similar to Joy Philippi of Nebraska, immediate past president of the National Pork Producers Council – that they “support the development and the use of alternative and renewable fuels as a way to reduce America’s dependence on foreign oil, but we continue to have the jitters over the rapid rise of corn ethanol production in our country.”

The livestock and poultry producers also were united in their call for reducing or eliminating incentives for biofuels production. “This means we are calling for sunsetting the existing blenders tax credit and the ethanol import tariff as scheduled in 2010 and 2009 respectively,” said Ernie Morales, a cattle feeder and rancher from southwest Texas, who spoke for the National Cattlemen’s Beef Association.

HarkinHowever, in separate press conferences Thursday, the chairmen of the House and Senate Agriculture Committees disagreed.

Senate Ag Committee Chairman Tom Harkin of Iowa, always a strong advocate for livestock producers, said, “I understand maybe where they’re coming from, but I think these things have a way of leveling out.” He believes the anticipated increase in corn acreage this year will help bring prices down to more manageable levels.

PetersonHouse Ag Committee Chairman Collin Peterson of Minnesota pointed out that grain producers are finally getting a fair price for their crop. “What people fail to recognize is that over the last number of years, corn prices have been substantially below the cost of production and the livestock industry has benefited from this,” said Peterson.

Several of the livestock industry witnesses at the hearing admitted that the situation is likely short term and that much of the current concern is due to the unprecedented rapid growth in ethanol production. As Iowa dairy producer Rob Wonderlich, testifying on behalf of Dairy Farmers of America, told the committee, “This biofuels revolution occurred very quickly and did not allow … the livestock industries to properly adapt, which has sent a shock across the industries in the form of increased operating costs.”

Ethanol, Government, News

Coral Cables Going Green

John Davis

Coral Gables truck The City of Coral Gables, Florida will be the first city in South Florida to use biodiesel in the city’s vehicle fleet.

According to a city press release, Coral Gables has inked an agreement with SolarDiesel Corp. to test 20% biodiesel in the city’s trucks.

“Coral Gables continues to be a leader and on the cutting edge of providing municipal services. This new initiative, part of the greening effort, is so important to the environment in today’s world,” says City Manager David L. Brown. “We are proud to be the first here in South Florida to partner in a pilot program with SolarDiesel Corporation.”

The city will track the biodiesel in three vehicles for 60 days. If it works out, Coral Gables may increase the number of trucks under the program for six months.

Biodiesel

The Trickle Down of Biodiesel

John Davis

Often times we hear about the added value alternative fuels such as biodiesel and ethanol bring to an area. The Seattle, WA area will begin to see those effects as it opens a major biodiesel plant.

Imperium When it opens this summer, the Imperium Renewables plant is expected to produce 100 million gallons of biodiesel a year and will become the largest in the country. And all that biodiesel means increased shipping for the area. In fact, the Grays Harbor (WA) Daily World reports that port will see the number of cargo ships in and out of the harbor double.

Imperium officials promise moving the green fuel will keep things green for the environment:

Brian Young, Imperium Renewables’ director of business development, said the company will deal only with experienced shippers. Imperium has its own contingency plans should spills occur while ships are loading or unloading, he added.

“We are going to take every precaution just like we were a petroleum company. Our whole theory is that nothing should spill into the water,” he said.

Port officials cannot say exactly how much more money the increased traffic will bring, but Imperium will be using smaller tankers to bring in the raw materials and barges and tugs to ship out the biodiesel.

Biodiesel

New Alabama Biodiesel Plant Starts Production

John Davis

A 40-million-gallon-a-year plant in Claiborne, AL has produced its first gallon of biodiesel. The project has been a quick turnaround as Independence Renewable Energy Corporation announced it wanted to build the plant just six months ago.

This story from The Birmingham (AL) News:

Plant manager Greg Martin said the biodiesel plant is expected to generate annual revenue of $120 million by distributing the alternative fuel to markets in Alabama, Georgia, Louisiana, Florida and Mississippi.

The biodiesel plant will use an estimated 27 million bushels of soybeans and will make the company the largest producer in the Southeast United States.

A ceremony with Alabama Gov. Bob Riley will be held later this month.

Biodiesel

Senators Defend Ethanol Tariff

Cindy Zimmerman

Grassley Two Republican senators voiced concerns Wednesday about a potential U.S.-Brazil ethanol accord.

Iowa Senator Charles Grassley says he welcomes the President’s efforts to increase ethanol consumption through a partnership with Brazil because “God only made so much oil.” However, he said “We want to welcome it from a standpoint that United States taxpayers are not subsidizing competition,” which he says would happen if the tariff on Brazilian ethanol imports were eliminated.

ThuneSouth Dakota Republican John Thune argues that elimination of the tariff is counter-productive to the intention of developing a strong domestic ethanol industry. “This is something that is very good for American agricultural producers,” he said. “So it doesn’t make sense for us to be trying to develop that industry elsewhere around the world nor to make us dependent on a foreign source of energy when the whole purpose is to become less dependent on foreign sources of energy.”

Ethanol, Government, International, News

Protecting Ethanol Technology

Cindy Zimmerman

Broin Companies Ethanol industry leader Broin Companies is going to court to protect its proprietary technology.

According to an Argus (SD) Leader article, the Sioux Falls company filed a federal lawsuit last week alleging that two employees of a Broin-affiliated ethanol plant in central Iowa learned confidential information and trade secrets about its ethanol production methods.

Then, the lawsuit alleges, the Iowa employees left to work with Colorado’s first ethanol plant – a direct competitor of Broin. In going to Colorado, the employees broke agreements not to compete with Broin, according to the lawsuit.

The employees in question worked at Broin’s Horizon Ethanol plant and now work for Sterling Ethanol in northeast Colorado.

Broin officials are not commenting on the lawsuit which was filed March 1 in Iowa.

Ethanol, News

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