15 Percent Solution?

Cindy Zimmerman

This commentary from the Detroit News suggests that a 15 percent ethanol blend may be the best use of the fuel for the industry at this time.

Sam R. Simon, a member of the National Petroleum Council and chairman of Atlas Oil Co., argues that, as opposed to E85, E15 is the best option because that 15-percent ethanol blend can be dispensed today from existing pumps and can safely power nearly every car.

His point is a valid one since the cost to install E85 pumps and the fact that only a small percentage of vehicles can run on it now seriously limits the use of the higher ethanol blends. If the petroleum companies were willing to use as much as a 15 percent blend in most gasoline at the pump, it would lessen our dependence on foreign sources of oil more efficiently.

Think that’s going to happen?

Ethanol

A Case for Ethanol Free Trade Market

Cindy Zimmerman

card.jpg An Iowa State University economic study says the trade barriers are boosting the price of domestic ethanol and that removing them would “decrease the price for U.S. ethanol, while the world price would increase, as U.S. demand — and ethanol imports — would increase.”

According to a press release from ISU’s Center for Agricultural and Rural Development, the study looks at the two largest ethanol producers: Brazil (ethanol from sugarcane) and the U.S.(ethanol primarily from corn). The analysis was based on mathematical simulations using an international ethanol model and country-specific models. The simulations were performed for two U.S. policy reform scenarios: one for trade liberalization alone and the other adding removal of the U.S. 51 cent-per-gallon tax credit to refiners blending ethanol.

The full report can be viewed on the CARD website.

Ethanol, Research

Keeping up with The Andersons

Cindy Zimmerman

AndersonsThe Andersons, Inc. of Ohio has begun preliminary site work for an ethanol plant located in Greenville, Ohio.

According to a press release, The Andersons closed the purchase of property located in an industrial park in this Southwestern Ohio community. Additionally, the company has received a draft air permit from the Ohio Environmental Protection Agency.

The 110 million gallon per year plant would be the first plant in Ohio and could be operational as soon as the first quarter of 2008.
of up to 40 employees. The project is subject to approval by The Andersons Board of Directors.

Ethanol

A Grand Event

Cindy Zimmerman

VanguardWell over 600 people were on hand for the grand opening of Missouri Ethanol on Monday in the small town of Laddonia, Missouri – which only has a population of 600!

Flying over head to kick-off the event was the 100 percent ethanol-powered Vanguard Squadron, and at the podium to praise the farmer owners of the plant for their dedication and perseverance were state and national government officials and organization representatives.

“This is more than just the city of Laddonia,” said US Congressman Kenny Hulshof (R-Mo). “This is the future of farming.”
Listen to Hulshof’s full remarks: Listen To MP3 Kenny Hulshof (5 min MP3)
Hulshof
Also speaking at the event were US Senator Jim Talent of Missouri, several state legislators, and the leaders of both the American Coalition for Ethanol and the Renewable Fuels Association.

RFA president Bob Dinneen welcomed Missouri Ethanol to “the fastest growing energy industry in the world – the US ethanol industry.” Brian Jennings with ACE noted that ethanol is now blended with 40 percent of the of the nation’s fuel.

Missouri Ethanol is the nation’s 105th ethanol biorefinery now open with over 40 more under construction. It is the fourth plant for Missouri.

Audio, Ethanol

Plant Manager Interview

Chuck Zimmerman

Robin VennThe General Manager of Missouri Ethanol is Robin Venn. He’s currently in the process of getting his house sold in Kansas City so he can move to the Laddonia area.

I interviewed Robin after the grand opening festivities were winding down. He says that all the employees of the ethanol plant are from Missouri which he thinks is unusual but shows that central Missouri has the technical talent for a plant like his and that the plant is keeping those people near home.

Listen to our interview: Listen To MP3 Robin Venn Interview (3 min MP3)

Audio, Ethanol, Facilities

Missouri Ethanol Ribbon Cutting

Chuck Zimmerman

Missouri Ethanol Ribbon CuttingThe grand opening event for Missouri Ethanol is just finishing up with public tours. I don’t think they could have asked for better weather. I heard the attendence pegged at 585 but I think it was more than that. It was a big crowd on hand.

The stage was filled with dignitaries who all got up together for the ribbon cutting to kick off the official opening of the plant. Production is slated to begin by tomorrow.

Ethanol, Facilities

Racing to the Hill

Cindy Zimmerman

Ethanol Hot Rod The National Corn Growers Association, the Ohio Corn Growers Association and the Renewable Fuels Association are bringing an ethanol-powered, high-performance race car to Capitol Hill this week to promote ethanol.

Mark Thomas, five-time International Hot Rod Association Funny Car champion, and his Ohio Corn Growers-sponsored race car will be on the corner of Delaware Avenue and C Street NE on Wednesday, September 27.

Learn more about Mark and his passion for ethanol as a farmer and a driver by listening to the Domestic Fuel interview with him on our previous post.

Ethanol, Racing

Biofinance Conference

Cindy Zimmerman

Finance Conference Training on how to finance biofuels projects is the goal of Infocast’s Ethanol & Biodiesel Project Finance: The Tutorial, coming up November 1-3 in Chicago.

Here’s the pitch from the organizers:

Biofuels are red-hot, and getting hotter by the day! But developers and financiers must understand how to best take advantage of the national Renewable Fuels Standard and other incentives, as well as how to mitigate feedstock and technical risks, in order to structure projects to optimize revenue streams while minimizing risk exposure.

Biodiesel, conferences, Ethanol

Prices Coming Down

Chuck Zimmerman

Mid Missouri Gas Price on 9-23-06I was very pleasantly surprised to see the price of gas in Columbia, MO yesterday.

Since I drive a flex fuel minivan I filled up with E85.

Tomorrow I’ll be attending the grand opening of Missouri Ethanol in Laddonia, MO. I’ll be taking some pictures and doing some interviews and will ask about our gas prices and what role ethanol is playing in them currently.

Ethanol