Just in time for colder weather, consumers who use heating oil now have a new option that is cleaner-burning and domestically produced – Bioheat®.
The National Biodiesel Board (NBB) and National Oilheat Research Alliance (NORA) recently trademarked the term and launched the official logo for this product, which is made from a combination of biodiesel and generic heating oil, making it a superior product for the environment, as well as for the overall operational enhancement of the heating system.
International Domestic Fuel
Here’s a couple of interesting international developments on ethanol.
Domestic Fuel reader Erick Erickson of Nebraska sent a link to a post on a European blog called Biopact that tells about “an interesting but as yet unclear development” in Venezuela. Seems that Venezuela’s most recent Energy Strategy Meeting concluded with the announcement that the country will be investing massively in ethanol production. The OPEC member is the world’s 7th largest oil exporter, so it comes as a surprise to see Venezuela investing in biofuels.
Meanwhile, Brazil is pulling out all stops to increase ethanol production. According to UK Auto Industry – Unica, the Brazilian entity which manages the country’s sugar cane production, has announced that 77 new ethanol refining plants will be opened by 2012-2013, adding to 248 existing plants. At present, 48.3% of Brazil’s sugar cane harvest is made into ethanol; in six years’ time, this percentage will rise to 60%.
As was expected, Brazil has raised its ethanol mandate for fuel due to a record sugarcane crop. Fuel distributors will have to add a 23 percent ethanol content to all gasoline sold to service stations starting Nov. 20, rising from a 20 percent mandate now, the agriculture ministry said in a statement. Read more from Bloomberg.
On Pace for 20 Percent Growth
U.S. ethanol production is expected to increase by 20 percent over last year, according to the latest numbers that reflect production through August.
The Renewable Fuels Association released the newest data from the Energy Information Administration showing that U.S. ethanol producers were averaging 329,000 barrels per day of ethanol production in August.
That is a record for daily production average and an increase of 69,000 b/d from August 2005. For the first eight months of 2006, ethanol production is averaging 305,000 b/d, which translates into nearly 4.7 billion gallons of ethanol a year. These numbers, of course, will continue to grow as additional ethanol biorefineries will continue to come online.
Meanwhile, demand for ethanol in August averaged 385,000 barrels per day.
On-Line Course Teaches Mechanics of Ethanol
A new on-line training course for ethanol provides an understanding of ethanol fuel and how it affects engine performance and the environment.
The Ethanol Promotion and Information Council (EPIC) developed the Ethanol Fuel Performance Training module for anyone who wants to get to know the technical side of the fuel, according to Reece Nanfito, senior director of marketing.
“It’s intended for auto service technicians and other people interested in ethanol as it performs in engines,” said Nanfito. “It is an interactive course that goes through the benefits of ethanol and then goes through in great detail how ethanol performs in engines.”
Dan Schwartzkopf, who is general manager of Renova Energy’s Wyoming ethanol plant and also a drag race car driver, consulted for EPIC on the information to be included in the course to make sure it was correct and easy to understand for any level of interest.
“This program is going to enable anybody to go on-line and get questions answered,” said Schwartzkopf. “If your interest is just knowing what ethanol is, then it’s going to tell you a story. If your interest takes you into wanting to know the details of the working of a motor and the fuel together, it’s going to take you to that level. So, it’s an A to Z program.”
The online ethanol fuel training course can be found on the EPIC website.
Pumps Fine For Ten Percent Ethanol
In an effort to clarify the recent Underwriters Laboratory decision regarding E85 fuel pumps, the American Coalition for Ethanol is reassuring retailers that there is no concern regarding E10 fuel pumps.
“It’s important to be clear that Underwriters Laboratories’ decision has absolutely no impact on pumps that dispense ethanol blends up to 10 percent,” said Ron Lamberty, ACE Vice President of Market Development.
ACE also pointed out that the E85 pump certification change does not mean that all E85 pumps will be shut down. Underwriters Laboratories, on its own, has no legal authority. A UL listing for fuel pumps is only required in states or municipalities which have written such a requirement into their laws – so the group’s decision will affect E85 pumps in some, but not all, locations. In many cities and states this issue has already been addressed, and E85 fuel will continue to be available while UL studies the issue further.
The U.S. Department of Energy and UL are holding a joint “E85 Compatibility Technical Forum” Wednesday and Thursday to obtain additional advice to aid in the development of specifications for E85 pumps.
Ethanol Boosts ADM Profits
Ethanol production helped to more than double first quarter profits for number one ethanol producer Archer Daniels Midland.
Net income was up 116 percent in the quarter ending September 30 to a total of $403 million, much of that due to a more than 300 percent increase in corn bioproducts, mostly ethanol. ADM senior VP of Corporate Affairs Brian Peterson said profits were up versus last year on increased prices and they are looking forward to continuing involvement in the ethanol industry. “We have completed the permitting process for the 275 million gallon ethanol plant in Columbus, Nebraska and expect to complete construction in about 24 months. The 275 million gallon plant in Cedar Rapids (IA) is currrently in the permitting process.”
ADM intends to boost ethanol capacity by almost 50 percent to 1.6 billion gallons by 2008 to take advantage of increased demand for the alternative fuel as gasoline prices rise.
ADM’s complete first quarter earnings presentation is available on line here.
SE Biodiesel Workshop
From the economics of biodiesel to producing it drip by drip at the University of Georgia’s biorefinery, the Southeastern Biodiesel Workshop will cover all aspects of biodiesel in an upcoming three-day workshop.
Those attending the workshop Nov. 27-29 in Athens, Ga., will receive training from industry professionals and academic experts. They’ll learn how biodiesel is made in a hands-on production lab and interact with experts and industry representatives.
Early registration, which must be received by Nov. 1, is $195 for the workshop and $150 for the biodiesel lab. After that date, the cost is $225 for the workshop and $175 for the lab.
Record Setting State Biodiesel Initiatives
State legislation involving biodiesel is at an all-time high.
According to the National Biodiesel Board, more than 275 pieces of biodiesel-specific legislation were considered in this year’s state legislative sessions and 53 bills were passed that directly affect biodiesel use and production.
Among the states with biodiesel friendly legislation passed this year are Arizona, California, Florida, Illinois, Indiana, Iowa, Michigan, New York and Pennsylvania.
NCGA Says Corn Growers Can Meet Demand
According to the National Corn Growers Association, U.S. corn producers are providing enough corn to meet the demands of the ethanol industry, as well as other markets.
National Corn Growers Association Vice President of Public Policy Jon Doggett delivered this message in Washington, D.C. last week at “Biofuels and the Future of U.S. Energy,” hosted by the U.S. Chamber of Commerce. Other speakers at the event included U.S. Energy Secretary Sam Bodman and a number of government, industry and academic representatives.
Doggett participated on a panel where he presented the association’s 15 x 15 x 15 vision that calls for corn growers producing 15 billion bushels of corn to produce 15 billion gallons of ethanol by 2015.
“Through increasing corn yields, improved seed technology and overall improved ethanol plant production efficiency–among other things–this vision is very conceivable,” he said.
Nebraska Ethanol Growth
The number of ethanol plants operating, under construction or being planned in Nebraska continues to grow.
The latest map from the Renewable Fuels Association posted last week has Nebraska with ten operating plants and nine under construction. But, that’s apparently already out of date as plants keep popping up like prairie dogs in the Cornhusker State.
The Omaha World Herald reports that there are 12 operating and ten being built, with 30 more in the planning stages according to the Nebraska Ethanol Board.
If all the proposed plants were built, combined with those currently in operation, Nebraska would be propelled from the third to the No. 1 state in ethanol production. At full capacity, the 52 plants would produce 3.7 billion gallons of ethanol annually.
They also would consume 1.4 billion bushels of corn – about 180 million bushels more than the state’s farmers expect to harvest in 2006.
Another story from the Herald reports that Gov. Dave Heineman said Nebraska has more plants under production than any other state and called ethanol “the greatest economic development opportunity for rural Nebraska in a decade.”
Heineman said that the people investing in ethanol are smart and that he doesn’t think they are overbuilding.
“At some point could we build too many ethanol plants? I suppose,” said Heineman, who is due to become chairman of the Governors Ethanol Coalition in January. “But I think that is way in the future.”
Links to the Omaha World Herald articles require registration to view.