Keokuk Biodiesel Plant

John Davis

Downtown Keokuk is the home of a new, five-million-gallon-a-year biodiesel plant. And this article in the Burlington (IA) Hawk Eye promises it’s just the beginning for the town:

Tri-City Energy logo The Tri–City Energy facility that cost $5 million to begin operations is small compared to its peers that make from 30 million to 60 million gallons a year.

But as part of their four–phase plan, company officials plan to build another plant a few blocks away along the Mississippi River that will produce 30 million gallons from the region’s soybean crop.

Keokuk plant The plant is quite a boost to Keokuk as Tri-City Energy put its biodiesel plant in an old General Mills wheat processing plant that had been used just for storage for 30 years.

The company got a $500,000 grant and two million dollars in loan guarantees from the USDA… one of a dozen recipients in Iowa, Kansas and Oregon.

Biodiesel

Canadian Study to Boost Biodiesel

John Davis

Canada logo A newly-completed study in Ontario shows that biodiesel could be an effective alternative fuel for farm operations in Canada. According to a Canadian government press release, the project was conducted on six farms in the province:

“This project was designed to accelerate the adoption of biodiesel use on Ontario farms through a series of on-farm evaluations,” said Deanna Deaville, Special Project Coordinator with the Ontario Soil and Crop Improvement Association (OSCIA), which is administering the project. “Biodiesel has the potential to reduce Canada’s dependence on fossil fuels, provide great environmental benefits and increase market opportunities for Canadian oilseed producers.”

Gary Lunn “Our Government is committed to encouraging the development and use of renewable fuels,” said the Honourable Gary Lunn, Minister of Natural Resources. “Initiatives such as these play an important role in helping us achieve the government’s objective of five percent renewable content in transportation fuels by 2010. This is another example of how we can create new economic opportunities for farmers and the agricultural sector while also taking care of our environment.”

Five percent and 20% blends were tested and found, of course, to burn cleaner than conventional diesel. Officials hope the success of the project will encourage more biodiesel use across Canada.

The full study is expected to be released next month. It will be available through the OSCIA Web site: www.ontariosoilcrop.org.

Biodiesel, International

Ethanol Continues Record Pace

Cindy Zimmerman

RFAThe Renewable Fuels Association reports that that U.S. ethanol production and demand continue to set records as more Americans are looking to renewable fuels like ethanol to start America down the road of energy sustainability.

According to information from the Energy Information Administration and the RFA, production of ethanol in January 2007 averaged 375,000 barrels per day while demand averaged 414,000 barrels per day.

Ethanol, News

AFVI Kicks Off in Anaheim

Cindy Zimmerman

Alternative Fuels and Vehicles National Conference & Expo 2007 The Alternative Fuel Vehicle Institute 13th Alternative Fuels & Vehicles National Conference + Expo is underway in Anaheim, California. More than 1250 fleet and industry professionals are there for four days of information and product previews.

Fleets were in the spotlight Sunday with workshops on how alternative fuels are being used in private fleets, airport shuttles, school buses, mass transit, and much more. Over the next few days, the conference will feature dozens of nationally recognized leaders in the fields of fuels, emissions, vehicles, policy, foreign relations and climate change. On Monday, Iconic oilman T. Boone Pickens is joined by federal level policymakers including foreign policy strategist and former CIA Chief James Woolsey; Neel Kashkari, Senior Advisor to Treasury Secretary Henry Paulson; and fifteen year veteran of the U.S. Congress, Pete McCloskey. Star power will be provided on Tuesday by actors Larry Hagman and Ed Begley Jr. who will share their stories about lifestyle changes they’ve made to lessen their environmental footprints.

Sponsors for the 2007 AFVI Conference and EXPO include the Ethanol Promotion and Information Council, National Biodiesel Board, and Propane Exceptional Energy.

Biodiesel, EPIC, Ethanol, News

Happy April Fools’ Day!

Cindy Zimmerman

Couple of ethanol-related April Fool stories on-line:

Rutabagas for biofuels
Research by the biofuels industry has turned up a feedstock that does not compete with the food supply: rutabagas.
“Nobody likes rutabagas,” says Toby Marston, CEO of biofuels startup Rutaba-Gas LLC. “American farmers grow tons of rutabagas, but nobody really eats them. They’re perfect for making fuel.” Marston says people buy the distasteful, turnip-like vegetables with the best of intentions, but they sit in the refrigerator and end up being thrown out.

Ethanol not Kosher
It seems some Orthodox Jews, especially those of the ultra-conservative Ashkenazi breed, supposedly have challenged the use of ethanol-tainted fuel in the cars of their fellow temple members.
Ethanol is made from corn, which is forbidden for Ashkenazis to eat during Passover–meaning the next few days. But the operator of a gas station selling “Kosher” gasoline, a Mr. Yanev Ben-Zaken, is reported to claim the religious laws also ban any benefit to Ashkenazi Jews from corn.

Ethanol, Miscellaneous

Two Presidents Talk Ethanol Again

Cindy Zimmerman

Bush-Silva Ethanol and trade were the two main topics discussed by the presidents of Brazil and the United States meeting over the weekend at Camp David.

“We talked about biofuels,” said President Bush in a joint press conference with Brazilian President Luiz Inacio Lula da Silva on Saturday. “And I told the President that not only are we committed domestically to promoting a alternative fuel industry, we’re committed to working with Brazil. And that’s why we support the President’s initiative on the international biofuels forum, as well as the initiative that we talked about in Sao Paulo, and signed a memorandum of understanding, and that is to help nations in our own hemisphere realize the benefits of ethanol and biodiesel.”

President Silva’s statement heavily emphasized biofuels. “It’s important to say to President Bush, here in Camp David, in his residence, that, for me, the biofuel issue is almost like an obsession,” he said through an interpreter. “And now we are facing a period, a moment, where this new energy matrix can make the world more independent.”

While Silva said the meeting with Bush was “most productive” he had nothing new to take back with him to Brazil, an indication that President Bush remained firm in his commitment to retain the current tariff on imports of ethanol from Brazil, which is in place to offset the blenders credit for ethanol produced in the United States.

Read the presidents’ press conference transcript from the White House website.

Biodiesel, Ethanol, International, News

More US-Brazil Ethanol Talks

Cindy Zimmerman

Bush-Lula Ethanol will be on the table when Brazilian President Luiz Inacio Lula da Silva meets with President Bush in Washington this weekend.

The meeting will be a follow-up to Bush’s visit to Brazil earlier this month and, according to an Associated Press report, Silva “hopes to advance a biofuels alliance and help break a deadlock in world trade talks.”

Silva on Friday reiterated Brazil’s position that the alternative fuel will not gain traction worldwide unless the United States drops a 53-cent per gallon tariff on Brazilian ethanol.

The alliance’s “goal is to ensure conditions for ethanol, and later biodiesel, to become globally marketed commodities,” Silva said in a column published in The Washington Post. “This will only be achieved if trade in biofuels is not hindered by protectionist policies.”

Ethanol, International, News

US BioEnergy Posts Earnings

Cindy Zimmerman

US BioenergyUS BioEnergy has announced net income of $20.4 million, or $0.41 per share, for the year ended December 31, 2006 and net income of $21.0 million, or $0.36 per share, for the fourth quarter.

“This has been a year of significant progress and achievement for our company,” said Gordon Ommen, US BioEnergy president and CEO. “In addition to a successful initial public offering in December, we grew our ethanol production capacity to 250 million gallons by year end. We achieved this rapid growth through well planned acquisitions, greenfield construction and facility expansion. By the end of 2008, we expect to have seven plants operational with ethanol production capacity of approximately 600 million gallons per year.”

The company currently owns and operates three ethanol plants, which have combined production capacity of 250 million gallons per year, has five more under construction and another three sites under evaluation.

Ethanol, News

Ethanol Demand Drives Planting Intentions

Cindy Zimmerman

As expected, the USDA Prospective Plantings report out Friday morning showed that farmers expect to make a dramatic shift to corn acreage, and away from cotton and soybeans. The main reason – increased demand and higher prices of crops used for bio-fuels.

According to USDA’s National Agricultural Statistics Service, corn growers intend to plant 90.5 million acres of corn for all purposes in 2007, up 15 percent from 2006 and 11 percent higher than 2005. If realized this would be the highest acreage since 1944. Illinois farmers intend to plant a record high 12.9 million acres of corn this spring, up 1.60 million acres from last year. North Dakota and Minnesota growers also expect to plant record high corn acres, up 910,000 and 600,000 acres, respectively.

Soybean producers intend to plant 67.1 million acres in 2007, down 11 percent from last year. However, area planted to soybeans is expected to increase in the Southeast, with Georgia expecting the largest increase from last year at 95,000 acres.

All cotton plantings for 2007 are expected to total 12.1 million acres, 20 percent below last year. Growers intend to decrease planted area in all States with the largest acreage declines in Arkansas, Georgia, Louisiana, North Carolina, Mississippi, and Texas.

Government, News

Wind Farm on the Way for ND

John Davis

Minnkota Minnkota Power Cooperative, Inc., and Otter Tail Power Company have announced they will develop the Langdon Wind Project… which will become the largest wind farm in North Dakota.Otter Tail Power Co.

According to a company press release, the 25-year agreements say Minnkota will purchase 99 megawatts of wind-generated power and Otter Tail Power Company will buy 19.5 MW of wind power. Also, Otter Tail will own an additional 40.5 MW at the project site:

“We’re pleased to have this renewable energy purchase agreement in place,” said David Loer, Minnkota President and CEO. “In response to customers’ interest, Minnkota is seeking to add more economical renewable generation to our energy resources. We’re proud to be part of this FPL Energy project, which will be the single largest wind farm in the state of North Dakota.”

The Langdon Wind Project is expected to put out 159 MW at its peak. It will be operated by FPL Energy… which already runs four other wind projects in the state.

Wind