Another Biodiesel Plant on the Way for New Mexico

John Davis

Just as I posted the article on New Mexico’s State House passing a biodiesel standard, I found this AP story in the High Plains Journal that says a 75-million-gallon-a-year plant will be built near Clovis to convert animal fat from feedlots into biodiesel:

Dallas-based American Renewable Fuels, a subsidiary of Australian Renewable Fuels Ltd., plans to begin construction on its plant this summer.

Ross Garrity, chief executive of American Renewable Fuels, said one of the reasons his company chose New Mexico was that the state doesn’t have a large biodiesel industry.

“After talking with the governor, it became very apparent to me that New Mexico was very aggressive in wanting our business in the state,”

Maybe not a big industry, yet… but there’s also another 15-million-gallon-a-year plant under construction near Clovis (see my post from last month). Throw in the new biodiesel requirement working its way through the state legislature, and the state could be poised for something big. Stay tuned…

Biodiesel

NM Legislature Moves on Biodiesel

John Davis

Rep. John Heaton The New Mexico House has passed a measure that would require all diesel vehicles to use at least 5% biodiesel. Under Rep. John Heaton’s bill, all state agencies and public schools would be required to buy the 5% blend starting after in about three years. All diesel vehicles, public and private, would have the requirement after July 1st, 2012.

The Las Cruces (NM) Sun-News reports the measure tries to quiet some critics who worry that biodiesel won’t be available or will become too expensive:

The bill authorizes the New Mexico Department of Agriculture director and the secretary of the Energy, Minerals and Natural Resources Department to suspend sale of biodiesel for up to six months.

To suspend the requirement, both directors must find that sufficient amounts of biodiesel are unavailable to meet demand or the price of the fuel blend significantly exceeds the price of diesel for at least two months.

As we reported earlier, the National Biodiesel Board says there are 35 states with 135 biodiesel-related bills pending. The New Mexico measure now moves on to the state senate.

Biodiesel, Legislation

Classic Flex Fuel Vehicles

Cindy Zimmerman

NEVC BoothNational Ethanol Vehicle Coalition is just one of several ethanol-related exhibitors at the 2007 Commodity Classic in Tampa this week. Staff members Michelle Kautz and Haley Wansing were giving away t-shirts to growers who signed up at the booth to receive regular e-mail updates from the organization.

Greg Krissek of ICM is NEVC’s Chairman of the Board and he was at the booth in the trade show talking with farmers about how provides consumers with a one-stop resource for information about E-85 ethanol-enriched fuel and the vehicles that use it.

Greg KrissekOne of the highlights of the NEVC website is an online E-85 pump finder which he says the staff works very hard to keep updated. He says that there continues to be a very high level of interest in E-85 and that the crowd here seem to be very knowledgeable about it.

Listen to an interview with Greg done by Chuck Zimmerman as part of the Commodity Classic podcast series: Listen to MP3 File Greg Krissek Interview (6 min MP3)

Commodity Classic, Ethanol, Flex Fuel Vehicles, News

Vision 2020

Cindy Zimmerman

Vision 2020 Biofuels will play a major role in the soybean industry for the next 10 to 15 years under the United Soybean Board’s Soy 2020 released Friday morning at the Commodity Classic in Tampa, Florida.

The objective of Soy 2020 was to “create a vision for the future of U.S. soybeans that would be a complete collaboration and that would ultimately drive success for soybeans despite what the future may hold.” In addition to the USB, the project included support from Monsanto, Deere and Company, the National Oilseed Processors Association and Farm Credit Council.

According to the Soy 2020 Vision, the soybean value chain should promote soy health and nutrition benefits, environmental sustainability and technology safety to global consumers of food, fuel and feed, as well as support the viability and growth of animal agriculture, renewable energy and other soy-consuming industries.

“The continued population growth and growing economic status will provide many challenges and opportunities in the future,” says Don Borgman, director of Agricultural Industry Relations for John Deere’s North American operation. “The U.S. soybean industry can take a leadership role in feeding a hungry world and providing energy to sustain global economic growth.”

You can listen to an interview with Don Borgman here: Listen to MP3 File Don Borgman Interview (6 min MP3)

Biodiesel, Commodity Classic, John Deere

Branding Program Gains Momentum

Cindy Zimmerman

EPIC booth The ethanol industry is making progress towards the goal of helping consumers readily identify ethanol-enhanced fuel at the pump no matter where they are in the country.

Seven states – Kansas, Michigan, Illinois, South Dakota, Nebraska, Arkansas and Ohio – have now officially approved labels that incorporate the “e” brand to mark pumps that dispense E10, or ten percent ethanol fuel, according to the Ethanol Promotion and Information Council or EPIC.

At the 2007 Commodity Classic in Tampa, Florida this week, EPIC Director of Operations Robert White said the ethanol branding program has benefits for everyone, including individual retailers who in many cases are making less than a penny a gallon on gasoline sales.

“This is something that’s free to them – the labels, the shipping, point of sale materials and our national program – all tie consumers back to their individual station and their individual pumps,” White said.

White says EPIC is already working with another 25 states and hope to have at least half by the end of the year.

Commodity Classic, EPIC, Ethanol, News

Ethanol Opportunities and Pitfalls

Chuck Zimmerman

Arlan SudermanArlan Suderman is a market analyst for Farm Futures magazine. He was on the program at the BASF “Science Behind Plant Health” symposium at Commodity Classic in Tamp, FL yesterday.

Arlan’s spoke about the ethanol wave and addressed the opportunities and the pitfalls that he sees coming. He shares a lot of information about how people are investing in the industry and how the boom is affecting grower decisions.

Listen to Arlan’s presentation here (12 min): Listen to MP3 file Arlan Suderman Presentation (12 min mp3)

Audio, Ethanol, News

Ready for the Show

Cindy Zimmerman

EPIC Booth The 2007 Commodity Classic is underway in Tampa, Florida and biofuels are most definitely in the spotlight. From the policy making meetings for corn, soybean and wheat growers, to the informational sessions, to the trade show the influence of the energy business in agriculture dominates.

The Ethanol Promotion and Information Council (EPIC) has a brand spanking new booth set up in the trade show area which thousands of farmers from around the country will be visiting starting Thursday afternoon through Saturday.

EPIC, Ethanol, News

‘Tis the Season for Biodiesel Incentives

John Davis

State legislatures across the country are considering bills to promote the production and use of alternative fuels such as ethanol and biodiesel. In a story in the Beatrice (NE) Daily Sun, the National Biodiesel Board says 35 states have a total of 135 biodiesel-related bills pending… including one in Nebraska that would pay producers 30 cents for every gallon of biodiesel sold in the state.

State Sen. Cap Dierks State Sen. Cap Dierks’s bill (LB626) could end up shelling out $20 million each year… if Nebraska gets moving on its biodiesel industry. Unlike its commitment to ethanol, the state is not producing much ethanol… yet. There’s a 50-million-gallon-a-year plant being built near Beatrice.

By the way, the NBB says there about 10 states with production incentive legislation like the one proposed by Dierks.

Biodiesel

Kinder Morgan Makes Major Biodiesel Investment

John Davis

Kinder Morgan logo Houston-based energy company Kinder Morgan says it will spend $100 million to expand its biodiesel terminals in Houston, New Orleans, and New York City. According to a press release posted on the Kinder Morgan web site, Green Earth Fuels will build biodiesel production facilities at several Kinder Morgan terminals and already has underway an 86 million gallon facility in Houston expected to open this summer.

“Expanding our facilities to store and transfer biodiesel will benefit producers and help meet the country’s growing demand for additional energy resources,” said KMP Terminals President Jeff Armstrong. Upon completion, these expansions are expected to be immediately accretive to distribution available to KMP unitholders.

The facilities will be integrated into the petroleum infrastructure already in those areas.

KMP is already a major player in the ethanol market handling about 1.5 billion gallons of ethanol… or about 30% of U.S. market… each year.

Biodiesel

Energy Department Awards Cellulosic Grants

Cindy Zimmerman

The U.S. Department of Energy has awarded cellulosic ethanol grants to help with the construction of cellulosic ethanol biorefineries.

DOE Grants The Renewable Fuels Association released the full list of grant recipients.

Abengoa Bioenergy Biomass of Kansas, LLC of Chesterfield, Missouri, up to $76 million for a
proposed plant in Kansas to use 700 tons per day of corn stover, wheat straw, milo stubble, switchgrass, and other feedstocks.

ALICO, Inc. of LaBelle, Florida, up to $33 million for a proposed plant to 770 tons per day of yard, wood, and vegetative wastes and eventually energycane.

BlueFire Ethanol, Inc. of Irvine, California, up to $40 million for a proposed plant in Southern California to use 700 tons per day of sorted green waste and wood waste from landfills.

Broin Companies of Sioux Falls, South Dakota, up to $80 million for a plant in Iowa to use 700 tons per day of agricultural residues including wheat straw, barley straw, corn stover, switchgrass, and rice straw as feedstocks.

Iogen Biorefinery Partners, LLC, of Arlington, Virginia, up to $80 million for a proposed plant in Shelley, Idaho, near Idaho Falls tol use 700 tons per day of agricultural residues including wheat straw, barley straw, corn stover, switchgrass, and rice straw as feedstocks.

Range Fuels (formerly Kergy Inc.) of Broomfield, Colorado, up to $76 million for a proposed plant in Soperton (Treutlen County), Georgia to use 1,200 tons per day of wood residues and wood based energy crops.

Cellulosic, Ethanol, Government, News