Alabama Alternative Fuels

Cindy Zimmerman December 3, 2006

The state of Alabama is focusing on alternative fuels.

Alabama Agriculture Industries Commissioner Ron Sparks has announced the formation of the Center for Alternative Fuels.

“Hardly a week goes by that we don’t get calls to provide guidance to interested parties on how to build biodiesel or ethanol plants, or where to purchase alternative fuels. They want to know about licenses, permits, and various rules and regulations. I get requests from various sectors of agriculture wanting to know what crops should be planted for use in bio-fuel production,” said Sparks. “I am announcing today the establishment of a Center for Alternative Fuels at the Department of Agriculture and Industries. The Center will be a kind of one-stop-shop for information on what it takes to get into the business, where consumers can find it, and how Alabama farmers can support it with crops. In addition, the Center will serve as an economic development resource for recruiting producers of alternative fuel.”

Biodiesel, Ethanol, News

Roller Coaster Ride

Cindy Zimmerman December 3, 2006

For corn growers, ethanol means markets as usual. In other words, up and down.

That was the word from the senior agricultural economist for Wells Fargo Michael Swanson, who spoke at the Farm News Ag Show at Iowa Central Community College, according to this story by Bill Shea from the Ft. Dodge Messenger.

The economist said he’s ‘‘bullish’’ about the future of ethanol. But in nearly the same breath he cautioned that ethanol production will be a ‘‘real roller coaster.’’

Sounds like what farmers are used to already.

Messenger photo by Hans Madsen.

Ethanol, News

Biodiesel Milk Trucks

Cindy Zimmerman December 3, 2006

Oakhurst Dairy, based in Maine, has announced the conversion of their delivery trucks to a biodiesel blend.

Oakhurst credited tax incentives for driving the decision to convert 90 percent of its vehicles, making it the largest private biodiesel fleet in New England. Biodiesel is produced in Maine from waste vegetable oil. Except in the coldest weather, the delivery trucks will use a blend that’s 20% biodiesel and 80% petroleum diesel. Officials say the ratio reduces air pollution without requiring engine modifications.

Biodiesel

Another Record Set

Cindy Zimmerman December 1, 2006

Every month there’s a new record set for ethanol production and the bar has now been raised to 333,000 barrels a day. That’s a 55,000 barrel per day increase since the beginning of the year, according to the latest figures released by the Renewable Fuels Association.

RFA says demand for ethanol remained strong in September at 380,000 b/d.

Ethanol, News

Extreme Green

Cindy Zimmerman December 1, 2006

General Motors won the Green Car design contest at the Los Angeles Auto Show this week with the “Hummer O2.”

According to CNN, this fuel-cell powered Hummer would produce oxygen. Agae-filled body panels could break down C02, a greenhouse gas, releasing oxygen into the atmosphere. When parked, body panels would fan out to catch more light, speeding the process. The 02 would be constructed from 100-percent post-consumer recycled aluminum.

Check out all the entries in the Green Car Contest here.

Miscellaneous, News

Ethanol Generates Discussion

Cindy Zimmerman December 1, 2006

This article from the Lincoln (NE) Journal Star and accompanying comments illustrates the myriad of opinions about ethanol that stem from partial truths and speculation.

The article is basically a tirade against ethanol by commodity broker Douglas Carper, with the headline “Ethanol Skeptic Sees Painful Realities Ahead.”

As far as Carper is concerned, there is no constructive purpose to putting so much emphasis on ethanol as an answer to shrinking energy resources.

His reasons are:
“Even if every bushel of corn in the United States were turned into ethanol, it wouldn’t make much of a dent in overseas oil dependence”

Beyond that, he sees so much emphasis on ethanol leading to higher food prices. He sees what he called a tremendous negative effect on the state’s cattle feeders, possible disruption in the food distribution system and some substantial portion of new ethanol plants failing to make a go of it as profit margins inevitably narrow.

The article offers the defense of ethanol to Don Hutchens with the Nebraska Corn Board, who rebutts Carpers contention that hunger will be a result of a food or fuel fight with, “Is it the responsibility of the Nebraska corn farmer to keep prices as low as he possibly can so no one in the world has food availability issues?”

Over 40 readers offered comments on the article, with a pretty even balance between those who agreed with Carpers and those who disagreed. Of those who agreed, many seem to think that ethanol is a “scheme” between agriculture and the government, demonizing agricultural producers with comments like “farmers are not the stewards anymore, they will sellout their own children and grandchildren for a few more dollars.”

Others defended the opportunity for growers to make a living. “Ethanol is the farmers chance to market a much higher level of prices and not have to depend on taxpayers every year to bail out.”

Ethanol

Mangrove Palm Could Make Ethanol

Cindy Zimmerman December 1, 2006

Here’s a story out of Malaysia on using sap from “nipah,” or mangrove palm, to make an ethanol-like biofuel.

The substance is similar to ethanol from Brazil’s sugar cane or Europe’s sugar beet but nipah would have higher yield per hectare.

The state government, after studying a proposal from a KL-based company on Wednesday, agreed to allow the company to extract “nira” or nipah sap from 10,000ha of nipah area along the state’s coastal area.

A plant to be built in Malaysia would be the first in the world to produce ethanol from palm.

Corn Growers Cautiously Optimistic About Higher Prices

Cindy Zimmerman December 1, 2006

The Associated Press reports that corn prices are at their highest levels in a decade and growers are looking at planting as much as 10 million more corn acres next year, according to Chris Hurt, a Purdue University agricultural economist.

“It’s a wonderful time for corn producers. They’re extremely excited, but they’re also apprehensive because they’ve seen booms before and they don’t last,” he said.

The average price of a bushel of corn has increased about $1.00 since September and is now about $3.45.

Former National Corn Growers Association president Ryland Utlaut of Missouri is a producer who is definitely happy to see prices higher for a change.

“I started farming 40 years ago and corn prices were $2.00,” said Utlaut. “Last year, we were $2.00 again.”

Utlaut says the 1995 “Freedom to Farm” bill helped to encourage farmers to develop more markets for corn. “And we’ve done it in big fashion with ethanol,” he said. “We haven’t seen much change in livestock use or exports, the new dynamic is the ethanol industry.”

Utlaut, who is the chairman of Mid-Missouri Energy in Malta Bend, firmly believes that the corn industry can meet the demand for ethanol and still meet the needs of livestock producers and exporters, and biotech corn will help do the job. This year’s average corn yield is estimated at over 151 bushels per acre, up almost ten percent compared to the “unprecedented” average of 138 in 2001.

Listen to an interview with Ryland about how he thinks biotech varieties will help meet demand for corn.
Ryland Utlaut (4 min MP3)

Audio, Ethanol, News

Green Theme at LA Auto Show

Cindy Zimmerman November 30, 2006

Somewhat like when President Bush was in St. Louis at the Advancing Renewable Fuels Conference, a heckler got the headlines when General Motors Chairman Rick Wagoner addressed the 100th Los Angeles Auto Show this week, according to this AP report.

The man unfurled a large black-and-white contract of sorts and asked Wagoner if he would sign a pledge to be the fuel economy leader in the industry by 2010.

Wagoner, a bit taken aback, politely said that his speech about GM’s efforts to develop green technology including a plug-in hybrid vehicle should speak for itself.

A Business Week report also highlighted the spotlight-stealing environmental activist, but at least gave Wagoner’s speech almost equal time.

When the first L.A. Auto Show debuted 100 years ago, he noted, there were three competing engine technologies—electricity, steam, and gasoline. “Going forward, it is highly unlikely that oil alone is going to supply all of the world’s rapidly growing automotive energy requirements,” he said. “The key is energy diversity.”

For GM, that meant talk of flexible-fuel vehicles, ones that run on gasoline or an ethanol blend called E85. It also meant unveiling a new hybrid gas/electric GMC Yukon sport-utility vehicle and plans for a “plug-in” version of the popular Saturn Vue Green Line SUV.

California Gov. Arnold Schwarzenegger joined representatives from General Motors and other car manufacturers at the show on Thursday.

The governor challenged automakers to keep making progress in manufacturing alternative vehicles.

“The cars that are clean will be the cars of the future,” he said.

World Biodiesel Output May Triple by ’09

Cindy Zimmerman November 30, 2006

An analyst with Bunge Ltd., expects world biodiesel output to hit nearly 16 million metric tons by 2009.

That prediction, which is more than triple the current 5 million metric tons this year, was made by Bunge’s Nancy DeVore at the Terrapinn Biofuels Finance & Investment World conference in London.