Truth and Tortillas

Cindy Zimmerman

Tortillas Truth About Trade & Technology has posted a Wall Street Journal commentary on the tortilla crisis in Mexico. The op-ed piece contends that the “cause of the corn price spike is too much government intervention.”

The sharp increase in Mexican corn prices, which fueled the tortilla price spike, followed big price increases for corn on international markets over the past year. The main cause, according to most commodity analysts, was the U.S. decision to subsidize ethanol made from corn. Growers who previously marketed their harvests to food and livestock companies suddenly have new demand from ethanol producers, who are also armed with a subsidy to make their bids more attractive. The increase in demand from government-subsidized ethanol producers pushed up prices.

Yet the U.S. isn’t the only government that is distorting markets. Mexico’s quota system for corn imports has exacerbated the problem.

Read the whole commentary.

Ethanol, International, Opinion

“BioFuels or Bust” Seminar at Wash. U. in St. Louis

John Davis

WashSci.JPGWashington University in St. Louis is playing host to a seminar on the role biofuels will play in a sustainable economics world. Jim McLaren, President and founder of StrathKirn, Inc, a science and biotech business consulting firm in nearby Chesterfield, MO, will conduct the seminar on the “state of biofuels development in the Midwest,” at Simon Hall on the Wash U campus, on Thursday, February 8th from 5-7 pm. Cost is free.

Register by clicking here (look under the Science Frontiers heading).

Biodiesel, Ethanol, News

House Subcommittee Examines Alternative Fuels

Cindy Zimmerman

Bart Gordon The House Committee on Science and Technology Energy and Environment Subcommittee this week looked into the country’s readiness to meet the demands of alternative fuels.

The subcommittee heard testimony relating to H.R. 547, the Advanced Fuels Infrastructure Research and Development Act, a bipartisan bill introduced by Committee Chairman Bart Gordon (D-TN), pictured here on the floor of the House. According to a committee release, the bill directs the Department of Energy (DOE) and the National Institute of Standards and Technology (NIST) to initiate a research, development, and demonstration program to make alternative biobased fuels more compatible with present-day infrastructure. H.R. 547 also directs these agencies to develop technologies and methods to provide low-cost, portable, and accurate measurements of sulfur in fuels, and to develop a physical properties database and Standards Reference Materials for alternative fuels.

DinneenAmong those who testified was Renewable Fuels Association President Bob Dinneen who discussed the technological advancements being made in the ethanol industry and the important role government can play in assisting private industry in developing new technologies and expanding ethanol infrastructure.

“The ethanol industry today is on the cutting edge of technology, pursuing new processes, new energy sources and new feedstocks that will make tomorrow’s ethanol industry unrecognizable from today’s,” said Dinneen. “Ethanol companies are already utilizing cold starch fermentation, corn fractionation, and corn oil extraction. Companies are pursuing more sustainable energy sources, including biomass gasification and methane digesters. And there is not an ethanol company represented by the RFA that does not have a cellulose-to-ethanol research program.”

Ethanol, Government, Legislation, News

Seed Companies Promote Ethanol Varieties

Cindy Zimmerman

GarstAs farmers start to make planting decisions for the coming year, many with an eye towards increased corn acreage to meet the demand for ethanol, seed companies are promoting varieties that have traits best suited for ethanol production.

Garst Seed Company has announced that 18 of their corn hybrids fall under the company’s ExtraEdgeTM designation, meaning they “exhibit grain characteristics especially suitable for dry grind ethanol production,” according to a company release.

Specific to ethanol production, ExtraEdge DGE hybrids have been tested and characterized using methodology established by the University of Illinois, which many in the industry consider the most accurate test since it mimics the dry grind ethanol process and measures actual ethanol creation.

Garst’s parent company, Syngenta, continues to research ways to increase the production efficiency of the dry grind ethanol process. This includes the development of a unique proprietary corn amylase output trait that expresses higher levels of the enzyme amylase, which can increase the efficiency of ethanol production.

Ethanol, News

NBB Chief Likes Bush’s Speech

John Davis

JoeJobe.jpgThe head of the National Biodiesel Board liked what he heard from last week’s State of the Union speech. CEO Joe Jobe says he was pleased that alternative fuels… in particular, biodiesel… took such a prominent position in President Bush’s annual address to Congress.

“Obviously, we were very excited to hear him lay out his 20 in 10 plan [reducing U.S. gasoline consumption by 20 percent in the next 10 years]. It’s a very bold initiative for renewable energy… alternative energy,” Jobe says.

NBB Jobe went on to say that he was encouraged that in the Democrat response, the new leaders indicated they wanted to work with Bush on energy issues. He added that this plan differed than those in the past in that it was more of a comprehensive energy plan implementing alternative fuels with conservation measures. “There really is no single, silver bullet. It’s going to take more of a silver buckshot approach to resolve our energy issues.”

Finally, Jobe says while speeches are one thing, it will take some working together by government and industry to bring the plan to fruition. “We’re hopeful that for the sake of the country… for the sake of the future of this country… we’re hopeful that our leaders in Washington can come together and do what’s right for the nation.”

Jobe expects Bush’s speech and “20 in 10” proposal will be a hot topic of conversation at the National Biodiesel Conference & Expo in San Antonio, TX, Feb. 4-7th.

Listen to the interview with Jobe here: Listen To MP3 Joe Jobe (8 min MP3)

Biodiesel, Government, Legislation

Fayetteville, AR Switching to Biodiesel

John Davis

Fayetteville is switching its 300-vehicle fleet… from garbage trucks to city maintenance pickups… to biodiesel. This article from the Northwest Arkansas Times explains the city will get a two-fold benefit… more freedom from foreign oil and a cleaner burning diesel:

“We’ve always been a very environmentally conscious and responsible community,” said David Bragg, fleet manager for the city.

The plan is to convert all diesel use to a 20-percent blend of biodiesel and 80-percent petroleum diesel, which is the highest ratio approved by most engine manufacturers, Bragg said.

“It is renewable, ” he said. “ It is produced within the continental United States in its entirety. It burns cleaner. It does not have the noxious smoke commonly associated with diesel engines.”

The city plans to start using the biodiesel when it starts pumping from a new fuel station expected to be finished in April.

Biodiesel

NBB Conference to Feature One Bad Motor Scooter

John Davis

Think biodiesel is just for slow-moving tractors? Check out this picture of a motorcycle Greenline Industries will be showcasing at the National Biodiesel Conference & Expo in San Antonio, TX later this week.Die Moto
Built by Oakland, California-based The Crucible, a non-profit educational collaboration of arts, industry and community, this thing will attempt to break the land-speed record for a diesel-powered motorcycle at the famed Bonneville Salt Flats this coming fall. The record is 105 mph. This thing has already been clocked at 130 mph! This is from a Greenline press release:

“We believe in proving the simple point that diesel fuels are exceptionally efficient in smaller engines, and that biodiesel is the
ultimate form of diesel,” said Ted Lavoie, Greenline’s CEO. “That is why we have sponsored the Earthrace circumnavigation world record attempt, and that is why we are sponsoring The Crucible’s land speed record attempt.”

“We hope to show the world the performance potential of bio-fuels by breaking the existing diesel record and establish records for both biodiesel and SVO at the home of high performance, the Bonneville Salt Flats,” said Michael Sturtz, Die Moto’s rider and The Crucible’s Executive Director.

See it for yourself at the National Biodiesel Conference & Expo February 4th-7th in San Antonio, TX.

Biodiesel, Biodiesel Conference

Hedging Risks with Asian Biodiesel

John Davis

The makers of biodiesel in Asia are taking steps to make sure they aren’t burned by the drop in oil prices. Biodiesel production has been pretty profitable for them when oil has pushed above $70 a barrel, but this Reuters story in the Hong Kong-based The Standard gives some advice on how the operations can stay profitable now that oil has dropped… sometimes below $50 a barrel.

“They should hedge the feedstock components on one side, then as crude prices go up, the margin and cost effectiveness of biodiesel tends to look more attractive,” said Tom James, chair professor at the University of Petroleum and Energy Studies in India.

“They then want to hedge against a sudden and sustained drop in crude prices, probably through some derivatives options on crude oil or gas oil or gasoline prices.”

It looks like biodiesel makers in Asia are facing some of the same issues farmers and biodiesel producers in the U.S. are facing… feedstocks prices rising with rising demand. The Asians have had to get away from some of the palm oil usually used for biodiesel. In this earlier post, we talked about how China had developed a rapeseed (canola) that produced a record 54.7% oil output… producing a feedstock hedge for that country.

Biodiesel, International

Biodiesel Conference Overview

Chuck Zimmerman

Once again this year I’ll be the biodiesel blogger at the National Biodiesel Conference which kicks off this weekend in San Antonio. I’ll be posting pictures, interviews and video clips during the conference. To get us started I interviewed National Biodiesel Board CEO, Joe Jobe. Joe gives us an overview of what we can expect.

You can listen to my interview with Joe here: Listen To MP3 Joe Jobe Conference Overview Interview (7 min MP3)

Remember that all my interviews will be podcast so you can subscribe to them in your favorite podcatching software (I recommend iTunes). You can find out more about how to subscribe here. This will be episode 22 since all the original 21 interviews from last year are still available to you.

We also have a conference blog sponsor this year and want to welcome and thank John Deere. This means you’ll be seeing the following tagline in all my posts:

Domestic Fuel coverage of the National Biodiesel Conference
sponsored by John Deere.

Audio, Biodiesel, Biodiesel Conference

All Boys Love Big Toys

Cindy Zimmerman

Big Boy ToysEthanol power was on display at the recent Big Boy Toy Show in Sioux Fall, SD. From planes to big trucks to race cars, it was all there for both big and little boys (and girls!) to enjoy.

A special attraction for all was Team Ethanol IndyCar® Series driver Jeff Simmons and the show car simulator.
Big Boy Toys and JeffKids of all shapes and sizes enjoyed playing in the car, as well as getting to meet Jeff who posed for pictures and signed autographs.

Broin Companies and the Ethanol Promotion and Information Council sponsored the Sioux Falls show which was held January 19-21 at the Sioux Falls Convention Center.

EPIC, Ethanol, News