Louisville Schools Switch to Biodiesel

John Davis

Another major city is using greener burning biodiesel… this time for the school district’s buses. The Louisville (Kentucky) Courier-Journal reports that the Jefferson County Public School District has switched its entire 1000+ bus fleet to biodiesel.JCPS

Jefferson County uses a blend containing just 2 percent biodiesel but will consider increasing that to a 20 percent mix, which can reduce particulate matter, carbon monoxide, unburned hydrocarbons and sulfur pollution by as much as 21 percent, studies show.

Although a 2 percent blend reduces emissions far less, it adds up in a 97,000-student district that burns 2.5 million gallons of fuel a year and drives 85,000 miles each day, environmental advocates say.

“It’s important because Louisville has struggled with air pollution,” said Elizabeth Robb, an environmental specialist with the Kentucky Division for Air Quality.

Officials also expect it to be better for the kids as diesel fuel emissions have been blamed for increased rates of asthma, lung disease, and cancer.

Biodiesel

Ethanol Offsets Increased Gas Use

Cindy Zimmerman

APIAmerica used more gasoline in 2006, but that increase was entirely offset by ethanol.

According to the American Petroleum Institute’s December 2006 statistics report, gasoline deliveries in 2006 increased a modest 0.8 percent from 2005 to 9.2 million barrels, or 386 million gallons, per day.

The year’s higher volume of gasoline deliveries was, in effect, met entirely by a substantial jump in the blending of ethanol into gasoline. Ethanol use in gasoline rose by more than 1 billion gallons, or nearly 35 percent, to an estimated 5.4 billion gallons in 2006. More than 40 percent of all gasoline consumed in the U.S. now includes ethanol.

That was good news to the Renewable Fuels Association. President Bob Dinneen commented, “The fact ethanol blends are making up for the entire growth in gasoline consumption means our nation is having to import less oil than would otherwise be needed.”

Ethanol, News

Smells Like Money

Cindy Zimmerman

Poop PetrolThis week’s Associated Press Centerpiece report focuses on ethanol plants powered by manure and other waste material.

Ranchers have long been fond of saying cattle manure smells like money.

Now, folks in the business of making ethanol are smelling dollars too – in the methane gas emitted by manure at large cattle feedlots and dairies.

The article looks at several companies that are addressing the “criticism that making ethanol uses too much natural gas or coal to produce” by using more environmentally-friendly sources of energy.

Among those highlighted are Kansas-based E3 BioFuels, Texas-based Panda Ethanol and Bion Environmental Technologies.

Ethanol, News

Higher Corn and Lower Gas Prices Cut Ethanol Profits

Cindy Zimmerman

Financial analysts are predicting dire times for the ethanol boom now that higher corn prices and lower gas prices are putting the squeeze on industry profits.

A Reuters UK article quotes from a Credit Suisse report that predicts a lower completion rate for planned ethanol plant projects.

“Back in July 2006, a new plant would have commanded returns in the 35-40 percent range using $2.50/bushel corn and $2.50 per gallon ethanol,” Credit Suisse said.

“More recent prices of $2 per gallon ethanol and $3.50/bushel corn generate implied returns of only 5-13 percent,” the report added.

Reuters also quotes a Goldman Sachs report, “Continued high levels of corn prices and low margins would make it more profitable for an integrated producer to actually sell the corn into the corn market rather than to turn it into ethanol at a lower profit.”

The Wall Street Journal reports that publicly-traded ethanol companies will be among those most impacted by lower oil prices.

As oil’s price falls, alternative-energy sources become less attractive because they usually are more expensive to produce than traditional sources. Ethanol producers could be hurt as rising corn prices send their cost of production higher, and as crude and gasoline prices fall.

Ethanol prices have been dropping sharply in the past few weeks. Dow Jones reports that national rack ethanol prices as of Monday averaged around $2.179, according to ethanolmarkets.com, compared to an average price of $2.4366 as of Jan. 10.

Shares of some ethanol producers such as Vera Sun, Aventine and Archer Daniels Midland fell earlier this month but, “the stock prices have rebounded in hopes for positive comments about renewable fuels in President Bush’s State of the Union address Tuesday.”

The Dow Jones article adds that even with the tighter margins ethanol producers can hold out for now.

Dan Basse, president of AgResource, said in a research note that “most ethanol plants contract their product sales for two to four months at a time, so corn prices will have to reach levels that produce at least a 10% margin loss“ before curtailing production.

Another analyst says “the ethanol plants least likely to have problems with the corn price hike and energy price dip are the farmer-owned co-operatives.”

Ethanol, News

ND Ethanol Plant to Run on Borrowed Steam

Cindy Zimmerman

An ethanol plant under construction in North Dakota will be first plant in the country to use steam from a nearby power plant to generate heat instead of having its own boilers.

Blue Flint Ethanol, a joint venture between Great River Energy and Headwaters Incorporated, is in the process of building a 50 million gallon per year dry mill ethanol plant in Underwood, North Dakota – which is about halfway between Bismark and Minot.
Bush Union 06
According to the plant’s website, the Blue Flint Ethanol facility is unique in the industry. Most ethanol plants are built with a natural gas-fueled boiler to provide heat for drying. As natural gas prices have increased in recent years, coal-fueled plants have become more common. However, Blue Flint does not have a boiler. Instead, waste heat from the adjacent Coal Creek power plant is redirected to Blue Flint to supply all the heat that a boiler would provide. The result is one of the industry’s most energy efficient, environmentally friendly facilities.

The photo of the plant under construction shows the U-shaped pipes that will carry the steam from the power plant to the ethanol plant.

In an article in the Minot Daily News, general manager Jeff Zueger says, “We’re taking steam and using it directly in the ethanol conversion process. So this is pretty unique.”

Blue Flint Ethanol takes its name from the blue flint corn grown by Indian tribes that once lived in the area near the plant site. They plan to “use corn harvested in the same area as feedstock for its ethanol production, turning an ancient grain into modern automotive fuel.”

Ethanol, Facilities, News

Making Ethanol From Barley

Cindy Zimmerman

Barley Barley is another crop that has the potential to be part of the next generation of ethanol.

North Dakota’s Farm and Ranch Guide reports that it was a topic at last week’s 2007 Dakota Grains Conference in Bismarck.

Dr. Kevin Hicks, Agricultural Research Service, new hulless varieties and processing technologies such as pearling may make barley a desired crop for ethanol plants. he Eastern Regional Research Center in Wyndmoore, Penn., is involved in a five-year project researching how barley can be used in the biofuels industry.

“Two years into the research project, we’ve already made exciting discoveries to help launch barley to the ethanol industry,” Hicks told producers and others gathered for the 2007 Dakota Grains Conference in Bismarck last week.

The major problem with using barley for ethanol is the hull, said Louis Arnold, president of the North Dakota Barley Council. Arnold, who is a leading barley producer in North Dakota, said the council helped build the ethanol plant in Walhalla. In the beginning, the plant used barley, but it didn’t work out. “It (the hard shell of the barley) ate the pipes up,” he added.

Some of the new barley varieties being released have “looser hulls” and Arnold believes these new varieties will be able to play a big part in ethanol if the hull can be easily separated.

Read more here.

Ethanol, News, Research

Who is E85 Inc.?

Cindy Zimmerman

E85 Inc. is a name that has been popping up in cities from New Jersey to New Mexico – a company that reportedly “plans to build a billion-dollar string of ethanol plants.”

The Seattle Times did some research to find out who is behind the company and what they hope to accomplish.

Mark Dassel, E85’s senior vice president, says there’s no real mystery — he and a skeleton staff have simply been too busy to answer inquiries: “This is a 7-day-a-week, 24-hour-a-day job.”

Skimping on details, he lays out an exceedingly ambitious agenda: E85 plans to quickly put up 10 ethanol plants costing about $150 million each. Together these will produce more than 1 billion gallons of ethanol annually; the company will buy an additional 1 to 2 billion gallons from other plants, he says.

Dassel contends E85’s rapid, cookie-cutter approach means “we’re going to be the low-cost producer” when a shakeout comes.

E85 Inc. is also planning plants in Michican, Ohio and North Carolina.

Ethanol, News

Media Rates Bush Energy Record

Cindy Zimmerman

Bush Union 06 News coverage in advance of the president’s State of the Union address Tuesday is comparing the rhetoric of last year’s speech to what has really been accomplished so far when it comes to energy independence.

The Associated Press reports President Bush is expected to renew concerns about energy security in his State of the Union address. But will the rhetoric be followed by action? Up to now, the record has been mixed.

The president is expected to call for a “sharp escalation of ethanol use in his speech,” which is a “political sure bet as ethanol has widespread bipartisan support.” But the article says the administration has been criticized for “not living up to the rhetoric” since not enough funding has been provided for research into cellulosic ethanol development, as promised last year.

Ethanol, News

Biofuels on Display at Green Week in Germany

Chuck Zimmerman

Bio Ethanol - E-85Hello from International Green Week in Berlin, Germany. I’m here to attend the board meeting of the International Federation of Agricultural Journalists (IFAJ). I know I haven’t been posting much lately but that’s because of the excellent job Cindy is doing and now John Davis. I hope you’ll agree. I will be posting quite a bit though in coming weeks from events like the National Biodiesel Conference and the National Ethanol Conference.

Here at Green Week I had heard that they had a whole pavilion devoted to bio energy this year. When I got there I found that it had more booths dedicated to things like wood pellet burning stoves for heat and a number of solar panel energy companies than what we think of such as ethanol and biodiesel.

However, as you can see ethanol is on display and it was one of the biggest displays. It looks like a variety of companies went in on the display, including Ford. The language barrier here can be a problem I found out as I couldn’t find anyone to interview who spoke good english. I did have a conversation of sorts with a gentleman in one booth with a company called Verbio. From what I could understand it looks like Germany has just instituted a tax law that makes it only possible to sell E-85 blend gasoline and that’s causing them to change over the approximately 108 fueling stations around the country that have ethanol blended gas. Although they have some ethanol production facilities started it sounds like they have to bring it in from elsewhere at present.

I was surprised that there didn’t seem to be any biodiesel on display. At least I couldn’t find any (yet). Since so many cars run on diesel in Europe I thought it would be more prominent.

International

Biodiesel Continues March Out of Midwest

John Davis

It used to be the image of a modern oilman was a Middle Eastern sheik. But more and more, it’s an American Mid-WESTERNER. Case in point, this article from the Bangor (Maine) Daily News. The town of Bucksport, Maine could become the home of one of the largest biodiesel plants in the Northeastern United States.

Dirigo Biofuels, an Iowa-based company whose owners have experience developing similar refineries in the Midwest, is working on plans for a plant in Bucksport that would produce 30 million gallons of biodiesel fuel from vegetable oil each year.

Tobin Bush, the project coordinator for Dirigo Biofuels, tells the Bangor Daily News that Bucksport is a good choice because it is close to where people would be using it and has a deep-water port.

“Most of the feed stock [raw materials] is being grown in the Midwest, but the final product is used on the coast,” he said. “Maine is right in the heart of the home heating fuel market.”

The company plans to rely on the deep-water access in Bucksport to bring in the vegetable oils it will use in the refinery, and, potentially, to ship the finished product to customers.

Plans are for the plant to be up and fully running by the end of the year, but Bush admits there’s still a distance to go to finish the deal.

Biodiesel