Strong Interest in FFVs and Hybrids

Cindy Zimmerman

Synovate A new market research study shows very strong consumer interest in flex fuel vehicles, but fuel economy is an issue with them.

The study, by global market research company Synovate, shows that 37% of US consumers would consider purchasing a Flex Fuel vehicle that runs on gasoline or E85 (85% Ethanol) the next time they are in the market to buy a car. However, more than a third of these same consumers lose interest in E85 Flex Fuel vehicles when they learn that there is a reduction in fuel economy.

This information came from Synovate’s latest semi-annual survey of consumer attitudes toward advanced propulsion and alternative fuel vehicles.

Publishers of the study say “this means that E85 will have to retain a substantially lower price per gallon over gasoline for it to have any impact on consumption.”

The survey also shows big interest by consumers in “plug-in” hybrids, once they know what they are.

Familiarity with the technology is currently low but, after hearing an explanation of a grid-connected hybrid, 49% of consumers said they would consider purchasing one, roughly the same level of consideration as standard hybrid technology.

Flex Fuel Vehicles, Research

Ethanol Plant For PA

Cindy Zimmerman

PA gov BioenergyThe governor of Pennsylvania has announced the first ethanol plant to be built in the state, as well as a cellulosic pilot plant.

Governor Edward Rendell made the announcement Thursday with representatives from BioEnergy International, LLC and Lukoil Americas, two important partners in the project. According to a news release from the governor’s office, the state is providing $17.4 million in “state investments to support the $250 million project,” which includes a 108 million gallon per year corn-based ethanol plant and a pilot scale cellulose demonstration plant.

The plant will employ conventional corn-based technology and will be among the largest east of the Mississippi River, and one of the nation’s top 10, based on output. The smaller pilot-cellulose plant will use BioEnergy’s groundbreaking technology to produce fuels using locally available organic wastes, such as wood and agricultural residue.

Ethanol

MTV’s VMAs and FFVs

Cindy Zimmerman

MTV
MTVs Video Music Awards this month (August 31) will feature ethanol and flex-fuel vehicles. According to a PR Newswire release from MTV:

Chevrolet, a division of General Motors, and MTV’s “Break the Addiction” campaign are partnering around the 2006 Video Music Awards to help educate viewers on E85 ethanol technology in an effort to raise awareness about reducing greenhouse gas emissions and curbing dependence on fossil fuels. Chevy will be providing a customized fleet of 60 Flex Fuel E85 compatible vehicles for the VMAs that will be specifically branded to promote the show as well as GM’s Flex Fuel technology. The fleet of MTV Video Music Award E85 Chevrolet vehicles will be used to transport talent and guests around New York City including arrival at the red carpet on August 31. Once the fleet of VMA-branded E85 vehicles has completed their VMA mission they will be made available for sale to the general public. Beyond the fleet, Chevrolet will also debut a customized Tahoe Concept, provide in-program content (Chevy will present the pre-show Top of the Rock concert and provide the “Chevy Fly-Cam” with aerial shots of red carpet arrivals) and present on-line/off-line advertising.

This should be a great way to educate a younger audience about the benefits of ethanol.

Ethanol, Flex Fuel Vehicles

Illinois Spurs Biofuels Development

Cindy Zimmerman

IL gov Illinois Gov. Rod Blagojevich this week announced more than $25 million in grants and support to help build five new ethanol and biodiesel production facilities across Illinois.

According to a release from the governor’s office, the new plants will spur about $334 million in private investment, produce 225 million gallons of biofuels each year, create almost 150 new jobs and reduce Illinois’ dependence on foreign oil.

“Energy independence means not being held hostage by OPEC every time you fill up the tank with gas. These new ethanol and biodiesel plants mean more homegrown fuel that can replace foreign oil and give drivers more options and cheaper alternatives,” Gov. Blagojevich said.

Biodiesel, Ethanol

Iowa Corn Indy

Cindy Zimmerman

Iowa Corn Indy The Iowa Corn Growers will be the title sponsor for the Iowa Corn Indy 250 next year at the new Iowa Speedway in Newton. Iowa Corn, Iowa Speedway, and the Indy Racing League made the announcement yesterday at the Iowa State Fair in Des Moines.

The race will be held on June 24, 2007 and will “showcase ethanol before a live national television audience.”

“This is a great opportunity to show the entire U.S. that ethanol is a winner,” said Kyle Phillips, ICPB chair-elect and a corn grower from Knoxville. “With all the Indy Racing League cars running on 100% ethanol in 2007, it’s an ideal fit.”

EPIC, Ethanol, Indy Racing

Cattle/Ethanol Deal Announced

Cindy Zimmerman

Hybrid Fuels Ok, I am not totally sure exactly what the deal is here – but this is what the news release says about the “Siksika Project,” a joint venture between Hybrid Fuels and A4 Bar Cattle Company, both located in Canada.

The barns constructed for the Siksika Project will be atmospherically controlled and will contain fly control devices. Cattle in the barns will be fed a diet of wet distillers grains (WDG) which are proven to be an excellent dietary feed stock for cattle and will be supplemented by a daily ration of fresh green grass. The Hybrid Fuels’ system is designed to dispose of barn waste without any material adverse environmental impact. Cattle will remain free from hormonal implants and antibiotics. Movement of cattle to the joint venture’s packing houses will be less than 25 miles to limit transportation-related stress for the cattle.

It is expected that the initial phase of the proposed Siksika Project of two facilities will produce up to 3,000 litres of ethanol daily, generate up to 1 megawatt of power, finish up to 2,400 head of cattle annually and provide up to 10 full time jobs. The hydroponics section of the barn is designed to have the grass growing equivalent of up to approximately 1,600 acres of grassland.

According to Angelfire.com, Siksika literally means “Black Foot”. Siksika is the name for the Blackfoot Nation located east of Calgary, Canada.

So, near as I can figure it, this project has to do with helping this particular tribe be more environmentally friendly in their cattle operations and produce ethanol.

Ethanol

The Cellulosic Race is On

Cindy Zimmerman

SunOpta As an alert reader pointed out to me (see previous post) SunOpta is “working with Celunol on the first commercial cellulosic ethanol plant in the United States,” as announced in a press release August 3.

As this article in Red Herring points out, the race to build the first commercial cellulosic ethanol plant in the US is definitely on.

Xethanol announced in July it is building a plant that will produce 50 million gallons per year in Augusta, Georgia. That plant is expected to start production by mid-2007.

In Canada, Iogen has a demonstration plant running and in May raised $30 million in Canadian dollars (about $27.1 million) from Goldman Sachs to build the first commercial plant. Iogen is also hoping to be the first in the U.S. as it is working on a deal to build a plant in Idaho (see previous post).

SunOpta is also Canadian-based and Celunol is located in Massachusettes and has the backing of ethanol venture capitalist Vinod Khosla. As Murray Burke, vice president and general manager of SunOpta, says in the Red Herring article, “The starting pistol has gone off,” for cellulosic ethanol in United States.

We’ll see who crosses the finish line first. But, no matter what, the ethanol industry and the country will be winners once this new technology that can use all kinds of materials to make fuel is made commercially viable.

Cellulosic, Ethanol

Shifting Power

Cindy Zimmerman

Power Shift Power Shift 2HTH PowerSHIFT Group Holdings, Inc. is the new name of HTH Wind Energy, a privately held company previously dedicated solely to the production and operation of small and large-scale wind projects.

The company changed its name and created a new logo and website to more accurately reflect its involvement in a variety of renewable energy businesses. HTH PowerSHIFT is a provider of alternative energy solutions in wind power, biofuel development and production, and renewable power generation.

Energy

Retailers Pumped About Biodiesel

Cindy Zimmerman

Spinx A South Carolina petroleum retailer now makes a 20 percent biodiesel blend (B20) available at 35 public pumps statewide, signifying a trend of increasing availability to consumers nationally, according to the National Biodiesel Board.

The Spinx Company has opened the locations throughout upper South Carolina. Thirteen of the B20 pumps are in Greenville, SC, giving the city’s consumers a new level of convenience for choosing B20. Of The Spinx Company’s 35 locations, 11 are truck accessible.

“We are very proud to be able to work with our state and local governments to bring environmentally friendly fuels such as biodiesel to the Upstate,” said Stewart Spinks, Founder and CEO of the Spinx Company. “We are fortunate to have the immediate support of our customers to make the introduction of biodiesel such a success.”

Biodiesel

I Want To Go Fast

Cindy Zimmerman

ACE Indy Car I know, I know – the “Ballad of Ricky Bobby” is about NASCAR and this is an Indy car …. whatever. It still works. Believe it or not, there are lots of people out there in the real world who actually, shockingly – don’t really know the difference. I admit it … I never knew the difference until last year.

But, one major difference is that next year Indy will be running on 100 percent ethanol – NASCAR won’t. As one of the few remaining major racing series worldwide that uses gasoline for its competition fuel, NASCAR just made the switch to unleaded gasoline, something most of us have been using for over 20 years. Discussions about a future switch to either E85 or just plain ethanol are only in preliminary stages.

Meanwhile, the Team Ethanol Indy show car is always a hit when it makes a pit stop, like at the ACE meeting last week. This week, the car is on display at the Missouri Corn Merchandising Council/Missouri Corn Growers Association booth at the Missouri State Fair.

EPIC, Ethanol, Indy Racing