Food Prices Only Expected to Increase Moderately

Cindy Zimmerman

USDA Despite a 100 percent increase in corn prices due to higher ethanol demand, the overall impact on food prices is expected to be minimal, according to an agriculture department economist.

Ephraim Leibtag, USDA’s food price economist, says retail food prices are forecast to increase two to three percent this year. “That’s a little bit higher than what we’ve seen in the last couple years, but still within the range of what we’ve seen in the last ten years or so.”

Leibtag says corn prices do have an impact on the cost of food and feed, “but their share of the overall retail budget is relatively small.”

In fact, even with higher feed costs for cattle, beef may actually end up costing less this year because of higher supplies, and the same goes for pork. USDA is predicting about a one percent increase in retail chicken prices.

Listen to USDA report: Listen to MP3 File Food Prices (3 min MP3)

Audio, Ethanol, News

Ethanol Pipeline Proposals

Cindy Zimmerman

Lugar Harkin Senators Tom Harkin (D-IA) and Richard Lugar (R-IN) have introduced legislation that would direct the U.S. Department of Energy to study the feasibility of transporting ethanol by pipeline from the Midwest to the East and West coasts.

The Ethanol Infrastructure Expansion Act of 2007 would look at creating a dedicated pipeline system could enable ethanol producers to deliver their products to states with a growing demand, like California, New York, and Pennsylvania, at a lower cost.

“We must explore every option for reducing our dependence on foreign oil. Overcoming problems in moving ethanol through pipelines, as Brazil has done, is important in developing the full promise of America’s renewable fuels. This legislation will help determine U.S. infrastructure planning and development,” Lugar said in a press release.

Petrobras Meanwhile, Dow Jones reports that Brazil’s state-run oil firm Petroleo Brasileiro SA (PBR), or Petrobras, is planning to start building an ethanol pipeline from central Brazil to the coast this year.

Chief Executive Sergio Gabrielli said, “The pipeline will serve mainly to transport ethanol for export to Japan.”

Petrobras, Japanese company Mitsui & Co. (MITSY) and the Brazilian builder Camargo Correa in late February had signed a memorandum of understanding to study the construction of an ethanol pipeline network in Brazil.

The pipelines would link ethanol producing areas in Brazil’s central state of Goias via main producing areas in Sao Paulo state to the port of Sao Sebastiao on the Atlantic Ocean.

Ethanol, Government, News

Biodiesel on a Small Scale, Too

John Davis

So many times, we talk about large biodiesel refineries coming online that will supply entire regions with the renewable fuel. But this little item in a local on-line paper caught my eye. The University of Wisconsin Extension Service is sponsoring at least two workshops… one at the Fox Valley Technical College in Appleton on March 27th and one in Dunn County on March 29th… teaching farmers how to brew their own biodiesel right on the farm.

The Dunn County News points out that Rudolph Diesel, inventor of the diesel engine, had intended for farmers to do just that… make their own fuel to run the tractors to work their farms. The article goes on to promise that at the upcoming workshops “farmers will get an unbiased, research-based look at what it takes to produce farm-based biodiesel”:

Jim Faust, UW Extension Ag Agent noted “There is a tremendous interest in biofuels, both among farmers, industry and government, whether it’s corn ethanol, biodiesel or ethanol from cellulose. It represents a potential win-win situation in terms of economic development in rural communities, reduction of greenhouse gases, as well as taking the U.S. on the road towards energy independence.

Gov Jim Doyle Wisconsin already has an aggressive plan for renewable energy. Governor Jim Doyle wants to replace 25% of the energy used in the state with energy from renewable sources, such as biodiesel and ethanol, by the year 2025 (see his plan here).

While these types of plans, such as the Wisconsin 2025 initiative and the big refineries, so often grab the headlines on this web site, it’s also the little initiatives such as the Wisconsin Extension Service’s attempt to teach farmers to make their own fuel that help chip away at that foreign fuel dependence.

Biodiesel

Push for E20

Cindy Zimmerman

Thune Senator John Thune (R-SD) is asking federal officials to approve the use of a 20 percent blend of ethanol in vehicles.

Thune said in a press release, “Conditions are ripe for the next big step forward in bolstering America’s energy independence. After several years of success, it is time for the federal government to prepare for the production and use of a new blend of ethanol, E-20. I have requested that EPA begin preparing for certification of the E-20 ethanol blend for use in automobiles.”

About half the gasoline sold in the nation is now a blend of ten percent ethanol and 90 percent gasoline. In a letter to Environmental Protection Agency Administrator Stephen L. Johnson, Thune urged the agency to prepare now for an upcoming waiver request from the state of Minnesota asking that the EPA approve the use of E20 in automobiles, which would ultimately pave the way for other states to follow that lead.

Ethanol, Government, News

Seeking Sponsor for AFVI Conference

Chuck Zimmerman

Alternative Fuels and Vehicles National Conference & Expo 2007Last year I covered what was then known as the Clean Cities Congress here on Domestic Fuel. This year it has a new name and we’re seeking a sponsor for our coverage. I know it’s coming up fast but we thought we had a sponsor for this and that didn’t work out.

If you’re interested in being our event sponsor please contact me as soon as possible. This is the premier event for fleet vehicles and I’m sure it’s going to be attracting more attention than ever this year.

As a sponsor your company would have its logo, linking back to your website, in every post done at the event. You can see all of my coverage from last year using this link.

Uncategorized

Illinois Eyes Cities’ Requirement on Hybrid, Alt-Fuel-Using Vehicles

John Davis

An Illinois state lawmaker wants to see cities in his state use vehicles that run on more alternative fuels.

The St. Louis Post-Dispatch reports Rep. Mike Boland has introduced legislation that would require cities to buy vehicles that run on more ethanol and biodiesel:

Rep. Mike Boland “We have an opportunity to really bring about an economic renaissance to rural Illinois by the increased use of ethanol and biodiesel,” Boland said. “We know there are a number of new (ethanol and biodiesel) plants that are being constructed around the state. … What this does is, it brings hundreds of construction workers to small towns … and a permanent work force of anywhere from 35 to 75 workers.”

The measure builds on similar legislation that passed last year that required the state to buy alternative fuel vehicles.

Biodiesel, Ethanol, Government, News

“Hood Up, Head Down and Alone with Thoughts”

John Davis

Will Steger Those are the words of Will Steger, famed Arctic explorer, now on a four-month-long, 1200-mile expedition across the Canadian Arctic’s Baffin Island.

Global Warming 101 So what is Steger trying to prove as today he and his sleddog team approach Iqaluit, Canada through -50 degree wind chills? Ironically enough, global warming.

Listen here to his audio dispatch from Day 5 that might be one of the most telling accounts of what global warming seems to be doing to at least this part of the world:
“The terrain is noticeably different than it was before. In particular, the snow conditions have changed. Very, very hard-packed snow conditions.”

“We didn’t see any tracks of wildlife… the migrations have changed.”

Meanwhile, his Global Warming 101 web site is providing updates on the effects to the local Inuits as his team travels from village to village:

During the week-long visits to each Inuit village, the team will listen to and document the Inuit’s experience with climate change. These collected images, sounds and stories will illustrate the dramatic climate-related changes happening in the Arctic: starving polar bears, retreating pack ice, melting glaciers, disrupted hunting and traveling, and the unraveling of a traditional way of life.

EPIC The ethanol industry, through the Ethanol Promotion and Information Council (EPIC) and Fagen, Inc., are natural sponsors for Steger’s expedition as both try to show there are better ways to treat the planet than our dependence on fossil fuels.

Check out updates including interactive maps, pictures,and even audio updates from Steger at the Global Warming 101 web site!

EPIC, global warming, International, News

Additive to Reduce NOx Approved for Texas Biodiesel

John Davis

Oryxe California-based Oryxe Energy International has announced that Texas has approved the company’s biodiesel fuel additive, ORYXE LED for Biodiesel, for use in the state. In a release on the Oryxe web site, it’s touted as the first biodiesel additive to reduce NOx emissions. While biodiesel reduces other emissions, this additive will help the fuel reduce the damage done by NOx to the ozone:

There are so many benefits to biodiesel, and ORYXE Energy is pleased to offer a NOx solution that adds one more plus to the fuel,” says James M. Cleary, ORYXE Energy chairman and chief executive officer. “The approval of ORYXE LED for Biodiesel gives the state, biodiesel producers and consumers another tool to improve air quality.

The release goes on to point out that Texas is one of the largest biodiesel producers in the country with 15 major plants producing and more on the way. The state is expected top crank out 250-million gallons of biodiesel this year… double that of just a year ago.

Check out the Oryxe podcast on the subject here.

Biodiesel

Biofuels Take Center Stage at NFU Convention

Cindy Zimmerman

NFU Indy CarThe National Farmers Union 105th annual convention in Orlando recently was very focused on alternative energy.

Speaker of the House Nancy Pelosi spent a significant portion of her keynote speech at the convention talking about alternative energy, from ethanol to wind. “By making the investments we need to make in renewable energy, we can turn America’s farms and fields into the victory gardens of the 21st century,” Pelosi told the group.

The NFU convention also featured House Agriculture Committee Chairman Collin Peterson of Minnesota who also talked about domestic fuels. “We need to develop the ethanol industry nationwide, not just in the Midwest,” he said. Peterson went on to stress the importance of keeping ethanol companies in the hands of their rural communities, a priority for NFU members.

During the convention, National Farmers Union delegates approved a policy position to enhance energy and environmental opportunities for rural America which includes supporting expanded research and development dollars for renewable energy technology; expanding the Renewable Fuels Standard; establishing a Renewable Portfolio Standard that requires 25 percent of energy usage to come from renewables by 2025; incentives for local ownership of renewable energy production; and extension and expansion of renewable energy tax credits, including permanent extension of the renewable energy production tax credit.

Listen to Pelosi’s comments about alternative energy here: Listen to MP3 File Pelosi at NFU (6 min MP3)

Photo: Representatives Collin Peterson and Nancy Pelosi with NFU President Tom Buis (courtesy NFU)

Audio, Ethanol, News, Wind

Obama on Ethanol

Cindy Zimmerman

Obama Presidential candidate Barak Obama visited the nation’s number one ethanol producing state over the weekend. During his visit to Davenport, Iowa, he did an interview with local television station WQAD-TV during which he was asked about his support for ethanol, in light of the current high price of corn.

“I think what we’re seeing is the market for alternative fuels expand and there’s going to be some growing pains,” Obama answered. While he admits that hog farmers are being affected by higher feed prices, he believes ethanol is the most promising way for the U.S. to reduce dependence on foreign oil.

“What we’re going to need to do is set up a distribution system. Gas stations need to be carrying E-85 gasoline. We had a bill last year that I introduced, that passed, that would provide incentives for stations to start having E-85 pumps. We’re going to have to continue creating a science that makes ethanol more efficient as the distribution systems and production start aligning, then I think we’re going to see this to be one of the most promising areas to wean ourselves off Middle Eastern oil but there’s going to be periodic disruptions as a consequence that the market for ethanol is not fully developed.”

Read the full interview with WQAD.

The picture found on Senator Obama’s website is from an appearance he made in August at the Bunge Plant in Cairo, Illinois after the company announced that it would begin building a new bio-diesel plant.

Biodiesel, Ethanol, Government, News