Ethanol Growth Forecast Disputed

Cindy Zimmerman

Lester Brown, founder of the Earth Policy Institute, held a press conference with reporters Thursday to warn that the government is underestimating the amount of corn that will be needed for fuel by next year.

According to the Associated Press, Brown says nearly twice as much corn as the government has estimated will be needed from the 2008 harvest to feed the ethanol plants that will be online by then. He blamed the lag on the failure of industry trade groups to keep up with development of ethanol plants.

According to the Earth Policy Institute’s data, U.S. ethanol distilleries now online or in the works will pull an estimated 139 million tons – or 5.5 billion bushels – of corn from the 2008 corn harvest to produce fuel for automobiles.

That’s based on 116 existing ethanol plants, 79 under construction, 11 undergoing expansion and 200 plants in the planning stages expected to be running by corn harvest time in September 2008.

The government in a February report estimated ethanol plants would use about 60 million tons – or 2.4 billion bushels of corn.

USDA’s chief economist is skeptical about the institute’s numbers and the Renewable Fuels Association questions the criteria used by Earth Policy Institute, saying some plants in planning stages included in the group’s estimates may never be built. Both say that the rapid expansion in the industry is making it more difficult to make even short term projections.

Brown’s answer is for the U.S. government to declare a moratorium on the construction of new ethanol plants until the impact of increased corn usage can be determined.

Read the full story from AP.

Ethanol, News

Biofuels Legislation Introduced

Cindy Zimmerman

ACE First day of the new Congress and already biofuels legislation has been introduced.

According to the American Coalition for Ethanol, U.S. Senators Tom Harkin (D-IA) and Richard Lugar (R-IN) have introduced the Biofuels Security Act of 2007.

Including many of the legislative priorities called for by the American Coalition for Ethanol, the bill places homegrown biofuels at the center of America’s quest for energy security. Introduced today by Senator Harkin and co-sponsored by Senator Lugar, the legislation includes these provisions:

Setting new benchmarks for the Renewable Fuels Standard (RFS), reaching 30 billion gallons per year by 2020 and 60 billion gallons per year by 2030.

Requiring all U.S. automobiles to be flexible fuel vehicles (FFVs) by 2017, capable of running on gasoline or any blend of ethanol up to 85 percent (E85).

Requiring the major oil companies to carry E85 at half of their gas stations by 2017.

NBB On the House side, the National Biodiesel Board was pleased to see Representatives Earl Pomeroy (D-ND) and Kenny Hulshof (R-MO), introduce the Renewable Fuels and Energy Independence Promotion Act.

It was their first legislation in the 110th Congress, which convened at noon. The legislation would make the federal excise tax credit for biodiesel permanent. If adopted, the move would likely lead to dramatic and sustained growth of biodiesel use.

The bill mirrors legislation that Pomeroy and Hulshof introduced in June 2003. It removes sunset provisions for ethanol and biodiesel incentives that accompanied the Volumetric Ethanol Excise Tax Credit (VEETC), which took effect Jan. 1, 2005. It also makes permanent a small agri-biodiesel producer credit.

Biodiesel, Ethanol, News

Clif Bar Promotes Cool Commute

Cindy Zimmerman

Clif Bar Clif Bar – a California-based environmental advocacy company that makes energy bars – is paying cash to employees who buy cars that run on biodiesel.

According to a company release, Clif Bar is paying 5-thousand dollars to employees who switch to 100 percent biodiesel for their commutes. The company also offers the same incentive for hybrid vehicles and other incentives for less petro-fuel usage.

Clif Bar company officials say the “Cool Commute” program is designed to encourage employees to rely less on fossil fuels in their commutes, so that “we can make a difference as a business when it comes to …global warming.”

Read more.

Biodiesel

Ethanol Creates Business Buzz in 2006

Cindy Zimmerman

Farm Futures reports that venture capital firms more than doubled their investments in biofuels and other energy ventures in 2006, and even more is expected in 2007.

According to DowJones Venture One, firms put $224 million towards energy ventures in 2005 – and $536 million in 2006’s first three quarters alone. Another estimate, by venture-capital firm Nth Power, puts the amount invested in energy start-ups at a whopping $1.7 billion in 2006. Start-ups making biofuel from farm products took the biggest share, the firm says.

DyadicBiotech firms working on more efficient ways to produce biofuels also saw a big boost in 2006. For example, the Miami Herald reports that shares of Florida-based Dyadic International were up 205 percent in 2006.

This Jupiter company has a ton of buzz words going for it, including biotech, DNA sequencing and cheap alternatives to oil. It’s signed a contract with a Spanish energy giant, Abengoa, to build a plant that would convert plant waste into fuel in a much cheaper way than corn-based ethanol. The company, which has a research relationship with Scripps Florida, is also developing enzymes to lower production costs of paper, textiles and animal feed.

Cellulosic, Ethanol, News

Biofuels Info From John Deere

Cindy Zimmerman

Deere John Deere is now featuring biofuels information for agricultural producers on its web site.

The information includes a detailed biofuels reference report and 6.5-minute video that overviews John Deere’s position on the use of biodiesel.

“John Deere has been an early advocate for biodiesel and continues to actively support its use,” says Don Borgman, director of agricultural industry relations for John Deere. “We believe that supporting the use of 2 percent biodiesel (B2) is a logical first step for the industry until challenges with production, quality and distribution are addressed.

John Deere was the first to approve B5 blends for general use in 2001 and initiated its factory fill program for self-propelled equipment in 2005.

The website address is www.johndeere.com/ag.

Biodiesel, Ethanol, News

October Ethanol Production Ties Record

Cindy Zimmerman

RFA Total U.S. ethanol production for 2006 is expected to be almost 5 billion gallons, but it will be a while yet before the official numbers are calculated.

The latest figures from the Energy Information Administration are for October at 333,000 barrels per day (b/d), which is equal to September’s record production.

According to the Renewable Fuels Association, the U.S. ethanol industry was averaging 310,000 b/d of production through October, an annualized volume of 4.75 billion gallons. Industry estimates show ethanol production reaching 4.9 billion gallons for the year, an increase of more than 25 percent from 2005.

Read more from RFA.

Ethanol, News

Discover Wisconsin on Ethanol

Cindy Zimmerman

Wisc Ethanol The first Choice Destination for 2007 on “Discover Wisconsin” isn’t so much a destination as a way of getting there.

The latest episode of the state’s tourism television show focuses on Wisconsin’s role in the domestic fuels industry, specifically E85. According to the show’s website:

With car manufacturers like GM offering a variety of E85-friendly vehicles, the new fuel is helping residents get to their favorite Wisconsin drive-to destinations with more money in their pockets. E85 is often cheaper than traditional gasoline – and most drivers don’t see a noticeable difference in gas mileage. In addition, we’ll take a look at some General Motors E85/flex-fuel vehicles, and dispel some myths associated with the fuel. We’ll tour the Chevy plant in Janesville to learn about what makes their vehicles different from regular gasoline vehicles. Finally, we’ll unveil a very special way that we at Discover Wisconsin are committed to the use of E85 fuel.

“Live Green – E85” will air January 6 and 7 on stations in and around Wisconsin.

Ethanol, News

Michigan Marching Orders

Cindy Zimmerman

Mich RFC As part of a series on “Making it in Michgan” the Associated Press did a report on the state’s campaign to become the nation’s leader in alternative fuels.

LANSING, Mich. (AP) – Gov. Jennifer Granholm laid it on the line for the members of the Michigan Renewable Fuels Commission.

“We want to be the state that shows the nation how it can be done,” she told them at their recent inaugural meeting. As traditional manufacturing jobs disappear and Michigan looks for ways to diversify its economy, the goal of the 26-member bipartisan commission is to help make the state a leader in researching, developing and producing alternative fuels, and in promoting vehicles that use them.

The commission is to present its recommendations to Granholm and the Legislature by early July.

Read more.

Biodiesel, Ethanol, News

Ethanol Factor in Planting Decisions

Cindy Zimmerman

High corn prices driven by increased demand for ethanol are causing farmers of various commodities to seriously consider switching crops for 2007.

Farm Futures reports that Nebraska farmers are considering planting corn in place of wheat they’ve already sowed.

With wheat futures high, University of Nebraska-Lincoln Extension cropping systems specialist Bob Klein says Nebraska producers planted probably 15% more wheat this fall. Now, with corn prices high, Klein says producers may kill off some of that wheat with herbicide to make way for corn in the spring.

Further to the west, some cotton and silage producers are considering a switch, according to the Western Farm Press.

Farmers in California and Arizona with parched wallets are eyeing a dangling carrot that could lead to improved grower incomes for those willing to produce specific feed grains to meet the insatiable needs of the nation’s exploding ethanol industry.

In the West, grower opportunities range from planting flexible corn hybrids that yield high quality silage for dairies as well as corn for ethanol – to foregoing cotton production for corn and grain sorghum.

Ethanol, News

The Good, the Bad, and the Indy

Cindy Zimmerman

Politicians, celebrities, race car drivers and investors all helped to make 2006 a year to remember for biofuels. Here’s just a few of the top stories on DomesticFuel this year.

January 31 – During his State of the Union address, President Bush uttered the catch phrase that marked a tipping point in the history of biofuels in America. “America is addicted to oil.” The president also brought fame to a mostly unknown plant called switchgrass. “We will also fund additional research in cutting edge methods of producing ethanol, not just from corn, but from wood chips and stalks or switch grass.”

WillieFebruary 5 – The star-studded National Biodiesel Conference kicked off in San Diego with a Super Bowl party. Luke Perry, Darryl Hannah and, of course, Willie Nelson all put in appearances at the event, which was covered from start to finish by DomesticFuel parent company ZimmComm on the Biodiesel Conference Blog.

Paul
March 26 – The first day of the Indy Racing League’s official switch to 10 percent ethanol fuel turned tragic when #17 Ethanol car driver Paul Dana was killed in a pre-race crash. Dana was instrumental in getting the IRL to switch to ethanol and his loss was a significant blow to people in both the racing and ethanol industries.

April 4 – Rahal Letterman Racing, the Indy Racing League and the ethanol industry announced the new #17 Ethanol car driver would be Jeff Simmons, an IRL Indy Pro Series driver from Connecticut.

April 25 – President Bush addressed the Renewable Fuels Summit 2006 in Washington, DC. Bush heavily promoted domestic fuels, both ethanol which he says has “the largest potential for immediate growth,” and biodiesel, which is why he “signed into law the first ever federal tax credit for biodiesel producers.”

May 26 – Approximately 1,200 people attended the grand opening celebration for the new $80 million Frontier Ethanol – the 100th ethanol plant to begin operations in the United States.

Ethanol CarMay 28 – The Indianapolis 500 runs for the first time on a 10 percent ethanol blend and begins to prepare for the switch to 100 percent fuel-grade ethanol in 2007.

August 9-11 – The 19th annual American Coalition for Ethanol conference is held in Kansas City, featuring a record number of attendees.

Bush
October 10-12 – The U.S. Departments of Agriculture and Energy jointly sponsor the Advancing Renewable Energy Conference in St. Louis. President Bush told the group of about 1500 attending the event, “I like the idea of promoting a fuel that relies upon our farmers.”

2006 was also a year of record production and demand for biofuels, new legislation in dozens of states to encourage both, and lots of new alternative fuel vehicle introductions.

Look for lots more in 2007.

Biodiesel, Ethanol, News