Investors in Blackhawk Fuels in Northern Illinois Meet This Week

John Davis

Blackhawk BiofuelsInvestors in a new, 30-million gallon a year biodiesel plant near Freeport, Illinois are meeting this week. Blackhawk Biofuels LLC will hold investor meetings today at 1 p.m. in Pontiac, Ill. and in Joliet, Ill. at 7:00 tonight. There will also be meetings tomorrow (Jan. 25th) in Dekalb, Ill. at 1 p.m. and Freeport, Ill. at 7 p.m. A couple of more meetings are scheduled for next month (click here for complete schedule and maps).

“After months of planning, we are pleased to begin selling units of our offering,“ stated Ron Mapes, chair of the Blackhawk Biofuels Board of Managers. “We invite everyone interested in a renewable fuels investment to attend an investor information meeting to learn more about biodiesel and our project.”

Total expected project cost for Blackhawk Biofuels is forecast to be $62 million with half coming from local investment and the balance through debt financing. The business plan calls for 30 employees with an expected annual payroll of $1.5 million.

Blackhawk Biofuels is registered to sell units in Illinois, Wisconsin, Iowa, and Indiana.

Biodiesel

More Industry Reaction

Cindy Zimmerman

ACE The ethanol industry could hardly be more pleased with the president’s call for increased use of the fuel in his State of the Union address.

In a news release, the American Coalition for Ethanol praised the president “for setting visionary goals for ethanol in his State of the Union address and the bipartisan leaders in Congress who are working to implement long-term plans for the increased production and use of homegrown renewable fuels.”

“President Bush’s call to increase the use of renewable and alternative fuels, including ethanol, to 35 billion gallons by 2017 sends a very powerful signal that an ambitious yet attainable Renewable Fuels Standard goal is the ideal strategy to strengthen energy security and independence in the U.S.,” said Brian Jennings, ACE Executive Vice President. “An RFS level of 35 billion gallons by 2017 is consistent with ACE’s call for an RFS of 60 billion gallons by 2030, and we are pleased that this and other important aspects of ACE’s legislative plan have already been included in S. 23, the Biofuels Security Act introduced in the 110th Congress by Senators Harkin and Lugar.”

Ethanol, News

Indy Sets Pace For Domestic Fuel

Cindy Zimmerman

Indy Car Series With its switch to 100 percent fuel-grade ethanol for the 2007 season, the Indy Car Series is already leading in the country’s race to reducing dependence on foreign oil, as called for by President Bush in his State of the Union address.

“The IndyCar Series shares the President’s commitment to energy security,” said Brian Barnhart, president and chief operating officer of the Indy Racing League, in a news release. “We accept the challenge of making these goals a reality.”E

“The partnership between the IndyCar Series and the ethanol industry exemplifies the spirit of energy independence, American ingenuity and innovation,” said Tom Slunecka, executive director of the Ethanol Promotion and Information Council.

The series will hold its first Open Test of the season at Daytona International Speedway Jan. 31-Feb. 1, 2007 where for the first time all IndyCar Series cars will run on the 100 percent fuel-grade ethanol. The 17-race IndyCar Series season opens March 24, 2007 under the lights at Homestead-Miami Speedway.

EPIC, Ethanol, Indy Racing, News

Domestic Fuel Industry Reaction

Cindy Zimmerman

Some biofuel organizations were reacting to the president’s State of the Union address even before it was given.RFA

A statement from Renewable Fuels Association president Bob Dinneen was emailed to the media over two hours before the speech.

“Recognizing the potential of our nation’s ethanol industry, President Bush used the unique forum of the State of the Union Address to elevate the significance of ethanol and renewable fuels to our nation’s energy future by calling for 35 billion gallons of alternative fuel use by 2017,” said Dinneen. “With consistent and focused policies, this is an eminently achievable goal. It will stimulate new investment in cellulosic ethanol technologies and drive market opportunities for ethanol beyond existing blend levels. It is a goal that makes sense for America.”

RFA will hold a telephone press conference Wednesday morning to address the president’s remarks with reporters.

NBB

The National Biodiesel Board issued a release immediately following the address.

“We are glad to see that the President’s Twenty in Ten plan includes strong steps toward renewable energy, energy conservation and diversification, and carbon reduction,” said Joe Jobe, CEO of the National Biodiesel Board. “We hope Congress will work with the Administration in a bipartisan way to enact this kind of bold new energy policy for the good of all Americans.”

Biodiesel, Ethanol, Government, News

President Calls For Increasing Alternative Fuel Supply

Cindy Zimmerman

2007As anticipated, President George W. Bush devoted a significant portion of his 2007 State of the Union address Tuesday evening to energy.

“For too long our nation has been dependent on foreign oil,” said President Bush. “It’s in our vital interest to diversify America’s energy supply. The way forward is through technology.”

The audience applauded seven times during the four minutes devoted to energy issues in the president’s address, including once when he mentioned biodiesel and once for ethanol.

“We need to press on with battery research for plug-in and hybrid vehicles and expand the use of clean diesel vehicles and biodiesel fuel. (applause) We must continue investing in new methods of producing ethanol (applause) using everything from wood chips to grasses to agricultural wastes.”

The president called on Congress to reduce gasoline use in the United States by 20 percent in the next decade.

“To reach this goal we must increase the supply of alternative fuels by setting a mandatory fuel standard to require 35 billion gallons of renewable and alternative fuels in 2017 – and that is nearly five times the current target.” That statement was met by a standing ovation led by a jubilant Senator Chuck Grassley from the number one ethanol producing state of Iowa.

Bush noted that achieving these goals will dramatically reduce dependence on foreign oil but not eliminate it, so he also asked that Congress to double the current capacity of the strategic petroleum reserve.

And while he briefly mentioned confronting the “serious challenge of global climate change,” the president did not specifically ask Americans to make lifestyle changes to conserve fuel as news sources anticipated prior to the address.

In the Democratic response to the President’s address, Senator Jim Webb of Virginia began by saying that energy independence was one area where the Democrats agreed with the administration and that they looked forward to working with him on that issue.

Listen to the energy portion of the President’s address: Listen To MP3 President Bush
(4 min MP3)

Audio, Biodiesel, Energy, Ethanol, Government, News

Terror-Free Fill-Up

Cindy Zimmerman

The Terror-Free Oil Initiative is planning to open the nation’s first “terror free” gas station in Omaha.

Terror Free According to the Associated Press and numerous television news reports, the Terror-Free Oil station in west Omaha will sell gas from oil companies that do not do business in the Middle East.

The station is scheduled to open in February and organization officials say more Terror-Free Oil stations are planned.

According to the Terror-Free Oil Initiative website, the Florida-based organization is dedicated to encouraging Americans to buy gasoline originating from countries that do not export or finance terrorism and “are also looking into creating a healthy debate concerning alternate methods of fuel production and consumption.”

News

Corn Growers, Farm Aid Team Up for Renewable Energy Workshops

John Davis

Farm AidThe American Corn Growers Association has received some grants from Farm Aid to put on a series of workshops across the country on producing and using ethanol, biodiesel, and wind energy. The Farm Aid money has been given to the Corn Growers to put on the workshops in more than half a dozen states on a variety of subjects:

* Overview of Bio-Diesel Production, Acceptance and Utilization,
* Overview of Pre-Feasibility Study Guide for Farmer-Owned Ethanol Plants,
* Wind Energy – New Potentials for Rural Communities,
* Overview of Federal Programs Available for Renewable Energy Production, and
* How Renewable Energy Production Can Be an Essential Component to Better Farm Policy.

“Our goal is to ensure we improve our continuing endeavor to communicate, educate and advocate the opportunities, challenges and possibilities for energy production on U.S. family farms,” said ACGA President Keith Bolin. “This will include issues relating to bio-diesel, ethanol, bio-mass, wind and other farm based energy producing possibilities.”

“Farm Aid is proud to support so many creative efforts around the country to expand opportunities for family farmers,” said Farm Aid President Willie Nelson. “We’re all working together to support good food from family farms.”

Stay tuned for dates and locations.

Biodiesel, Ethanol, News, Wind

Analyst Says Grain and Livestock Markets Affected by Biofuels Boom

John Davis

Bill Holbrook, owner of Holbrook Consulting, says grain markets are responding to the rapid growth in the ethanol and biodiesel markets. But what will it mean to longer-term grain and livestock prices? In my interview with him, Holbrook says right now, livestock producers are expecting tighter margins, but long-term feed prices are more likely to be affected by weather and the amount of acres being put into production.

Listen to it here: Listen To MP3 Bill Holbrook
(6:25 min MP3)

Biodiesel, Ethanol

High Crude Oil Prices Boost Alternative Fuels’ Price Competitiveness

John Davis

The Energy Management Institute has released a report that shows alternative fuels are much more cost effective… by nearly 30 percent… than they were just three years ago. The New York-based institute touts itself as higher learning for energy professionals such as oil companies, utilities, and transportation fleets. It found that biodiesel was 29.2% more cost effective than a few years ago while ethanol was 17.4 %. Natural gas (41.4%), electricity (36%), and propane (21.3%) helped alternatives to oil average a 29% cost effectiveness increase.

EMI

“We crunched a lot of data for this one,” said J. Scott Susich, Editor of EMI’s Alternative Fuels Index publication. “It’s not enough to look at prices from three years ago and compare them to recent values. We looked at the relationship between the cost of each fuel and the amount of energy one could buy on a BTU equivalent basis, and compared those values to their gasoline and diesel counterparts in each market. Next we had to look at the trends of those relationships to determine whether the results were atypical or part of a sustained pattern. In each case the data showed a continuing trend toward competitiveness,” Susich continued.

Now, whether alternative fuels can continue their cost-competitive march remains to be seen. EMI’s numbers are based on crude oil prices more than doubling during the time period studied to hit nearly $75 a barrel. Today’s oil prices are seen closer to $53 a barrel.

Biodiesel, Ethanol, News, Propane

More Biofuels Education Needed

Cindy Zimmerman

Despite the tremendous growth in ethanol and biodiesel production over the past year, consumers still lack a basic understanding of biofuels benefits and availability.

That’s the findings of a just-released consumer survey commissioned by Pavilion Technologies and conducted by Harris Interactive.Pav Tech

Despite a surge in production and government support, only a fraction of adult drivers in the United States (5%) currently use biofuels such as an ethanol-blend fuel or biodiesel. Education and availability prove to be stumbling blocks on the road to making ethanol a market staple.

The survey found that not only do drivers lack awareness about biofuels, many are misinformed on the subject. Forty-four percent of drivers agreed that they do not understand the difference between biofuels and conventional gasoline. One in four drivers who do not use a biofuel (25%) indicated that they do not know what it is. The overall survey results suggest that many consumers are not aware that ethanol is cheaper and better for the environment than traditional gasoline and that many cars on the road today can run on ethanol blends without modification.

Other findings of the study:

Fifty-seven percent of drivers are not sure whether biofuels are more, less, or equally as expensive as traditional gasoline or diesel fuel.

Fifty-seven percent of drivers who do not use a biofuel say it is because they do not think their car can run on it.

Nearly half (47%) of drivers who do not use biofuels say they do not know where to buy them.

Of drivers who currently do not use biofuels, the overwhelming majority (95%) indicated that they could be encouraged to make the switch.

A full copy of research findings, images, and ethanol industry resources is available on-line at the Pavilloin Technologies website. Findings will also be revealed in a webcast, available for viewing at the same location on February 1.

According to their website, Pavilion is the leading supplier of control software solutions to the U.S. ethanol industry.

Ethanol, News