Stars of the Show

Cindy Zimmerman January 11, 2007

New vehicles capable of running on up to 85 percent ethanol are the stars of the North American International Auto Show in Detroit this year, according to the Detroit Free Press.

For the first time, several automakers unveiled concept and production models capable of burning E85, the blend of 85% ethanol and 15% gasoline backed by Detroit automakers as the most viable option for reducing U.S. oil imports. Even Toyota Motor Corp. jumped on the bandwagon, announcing its new Tundra pickup would offer an E85 version in the 2009 model year.

“If people are serious about reducing imported oil, this is the best thing you can do fast,” General Motors Corp. Chairman Rick Wagoner told journalists at the auto show preview. “There’s no question it’s a good thing to do. Can’t see why anyone would be against it.”

Florida Legislature Urged to Support Biofuels Production

Cindy Zimmerman January 10, 2007

Florida’s Commissioner of Agriculture is a man on a mission – to make Florida the nation’s leader in biofuels production.

To that end, Commissioner Charles Bronson appeared before a joint meeting of the House Agribusiness and House Energy Committees on Wednesday urging them to consider tax incentives or some form of financial assistance that the state can provide to encourage growers to produce alternative energy crops and processors to locate facilities in Florida to convert the crops to fuel.

“You today are in a position of putting Florida ahead of the pack,” Bronson said. “It will be a Florida that looks much different than it does today.”

The Commissioner told legislators that unlike the Midwest, where corn is the primary alternative energy crop, research done at the University of Florida has concluded that by using certain bacteria, virtually any type of bio-mass can be broken down to fuel. That would include wood, forestry debris, plant stalks and even livestock waste in addition to conventional crops.

“The opportunities in Florida are going to shock you,” Bronson said.

Partnership to Discover Biofuels Enzymes

Cindy Zimmerman January 10, 2007

Agribusiness giant Syngenta has entered into a research and development partnership with San Diego-based biotech firm Diversa Corporation focused on “the discovery and development of a range of novel enzymes to convert pre-treated cellulosic biomass economically to mixed sugars – a critical step in the process of biofuel production.”

The new agreement allows Diversa to independently develop and commercialize fermentation-based enzyme combinations from its proprietary platform. Syngenta will have exclusive access to enzymes from Diversa’s platform to express in plants for enhanced cost-effective production.

Getting to a Biofuels Future

Cindy Zimmerman January 10, 2007

The Governors’ Ethanol Coalition has released a new report called Ethanol from Biomass: How to Get to a Biofuels Future.

The report asks the President and members of Congress to adopt four recommendations:

1. Expand the Renewable Fuels Standard (RFS) to include a short-term target of 12 billion gallons a year of ethanol and biodiesel utilization by 2010, and longer-term British thermal unit-based targets of 15 percent of total motor fuels consumption by 2015 and 25 percent by 2025, with equal incremental steps provided for each year in between;

2. Assign a financial value to the RFS cellulosic ethanol 2.5:1 trading credit into a more practical credit.

3. Establish a timetable for delivering 85% ethanol/15% gasoline infrastructure on a regional basis within five years.

4. Provide adequate funding for the Energy Policy Act of 2005 authorized biofuel research, demonstration and incentive programs.
Read the full report here.

Biodiesel, Ethanol, Government, News

Wisconsin Soybean Growers Seek Biodiesel Incentives

Cindy Zimmerman January 10, 2007

The Wisconsin Soybean Association is urging widespread support for their biodiesel policy initiative.

The association is specifically asking the state legislature this year for help in four areas:

1. Expand the distribution network for biodiesel fuel throughout the state by instituting tax incentives for wholesale and retail distributors and bulk fuel users.
2. Encourage consumption of biodiesel fuel via incentives for government entities to purchase new diesel vehicles.
3. Adopt a definition of biodiesel that conforms to ASTM D6751 standards.
4. Establish proper testing, laboratory and enforcement resources for biodiesel fuel within the Wisconsin Department of Agriculture, Trade and Consumer Protection and/or Department of Commerce.

Read more from the Wisconsin Soybean Association.

Biodiesel, Legislation

Ethanol Testimony

Cindy Zimmerman January 10, 2007

Aventine Renewable Energy CEO and Renewable Fuels Association Chairman Ron Miller presented testimony before the Senate Agriculture, Nutrition and Forestry Committee Wednesday on the impact of the ethanol industry’s dramatic growth on rural America.

“Ethanol today is the single most important value-added market for farmers,” said Miller. “The increased demand for grain used in ethanol processing has increased farm income, created jobs in the agricultural sector, and revitalized numerous rural communities where ethanol biorefineries have been located.”

In dollar terms, Miller told the committee that the five billion gallons of ethanol produced last year in the US translated to “an additional $41.1 billion to gross national output; the creation of 160,231 jobs in all sectors of the economy and an increase in household income of $6.7 billion, money that flows directly into consumers pockets.”

Other witnesses at the hearing included USDA Chief Economist Keith Collins, Mr. J. Read Smith of the “25×25” Steering Committee, and Gene Gourley of the National Pork Producers Council. Some of the opening statements and audio from the hearing is available on the Senate Ag Committee website.

Ethanol, News

Bio-Town May Get Ethanol Plant

Cindy Zimmerman January 10, 2007

Indiana’s “BioTown USA” might soon get it’s very own ethanol plant.

VeraSun of South Dakota has plans to is build a 110-million gallon capacity ethanol plant just outside the northern Indiana town of Reynolds that is a state project aimed at using renewable sources to provide all its energy.

The Biotown plan promoted by the state Department of Agriculture calls for construction of a plant that would use manure and other biomass material to generate electricity for the 500-person town about 20 miles north of Lafayette. It also is promoting the use of E85, which is a blend of 85 percent ethanol and 15 percent petroleum-based gasoline, for vehicles.

The White County Area Plan Commission voted this week to approve a request to rezone 273 acres of land near the town to allow for construction of the plant.

Read more from the Monticello, IN Herald Journal.

Ethanol, News

California Greening

Cindy Zimmerman January 10, 2007

California Governor Arnold Schwarzenegger wants to terminate greenhouse gas emissions in his state.

In his State of the State address Tuesday, Governor Schwarzenegger called for the establishment of a Low Carbon Fuel Standard in California, a “first-of-its kind standard” that will reduce the carbon intensity of California’s passenger vehicle fuels by at least 10 percent by the year 2020.

According to the Governor’s press office, the proposal would create “the world’s first global warming standard for transportation fuels.”

During his address, the governor said, “Our cars have been running on dirty fuel for too long. Our country has been dependent on foreign oil for too long. So, I ask you to set to motion the means to free ourselves from oil and from OPEC.”

Earlier on Tuesday, administration officials, industry and academic experts and stakeholders discussed the proposal at the state capitol. Among them was former California Secretary of State Bill Jones, who is now co-founder and chairman of Pacific Ethanol Inc. Jones called Schwartzenegger’s plan “historic, and it is one of the most comprehensive, well-thought out policies I’ve ever seen.”

Ethanol, Government, News

MIT Study Confirms Ethanol Benefits

Cindy Zimmerman January 9, 2007

It’s unlikely to be the final word on the subject, but a new MIT analysis shows that the energy balance between ethanol and fossil fuel is actually so close that several factors can easily change whether ethanol ends up a net energy winner or loser.

In other words, it depends on what you figure into the equation.

According to MIT, Tiffany A. Groode, a graduate student in MIT’s Department of Mechanical Engineering, performed her own study, supervised by John B. Heywood, Sun Jae Professor of Mechanical Engineering.

Based on her “most likely” outcomes, she concluded that traveling a kilometer using ethanol does indeed consume more energy than traveling the same distance using gasoline. However, further analyses showed that several factors can easily change the outcome, rendering corn-based ethanol a “greener” fuel.

Among those factors is system boundary, or which energy-using factors of production are included and excluded in determining energy efficiency. Groode compared several different studies that used different factors, including the 2003 Pimental study which counts such energy-consuming inputs such as the manufacture of farm machinery.

“The results show that everybody is basically correct,” she said. “The energy balance is so close that the outcome depends on exactly how you define the problem.” The results also serve to validate her methodology: Results from the other studies fall within the range of her more probable results.

Groode also did energy analyses of corn stover and switchgrass and found that fossil energy consumption is far lower with these two cellulosic sources than for the corn kernels.

“I view corn-based ethanol as a stepping-stone,” said Groode. “People can buy flexible-fuel vehicles right now and get used to the idea that ethanol or E85 works in their car. If ethanol is produced from a more environmentally friendly source in the future, we’ll be ready for it.”

Cargill Company to Build Ethanol Plants

Cindy Zimmerman January 9, 2007

Cargill has launched a renewable energy subsidiary to build four big ethanol plants.

According to Cargill, Emerald Renewable Energy plans to develop four 100 million gallon/year ethanol plants in the Midwest. No sites have been announced yet, but several are under consideration, including empty locations and sites near Cargill grain elevators

Emerald Renewable Energy is a privately held, limited liability company formed by Cargill to develop and invest in renewable energy projects in the United States. Cargill will provide the initial development capital for the projects. Emerald Renewable Energy will contract with Cargill for services to support the facilities, including corn supply, natural gas, price risk management and the marketing of ethanol and distillers grains.

“Emerald Renewable Energy will have access to Cargill’s world-class expertise in trading, sourcing corn, plant construction and operations, risk management and bulk commodity transportation,” noted Scott Portnoy, Cargill corporate vice president with responsibility for its Biofuels and Bioproducts businesses.