DuPont and BP are partnering up to develop, produce and market “the next generation of biofuels” to help meet increasing global demand for renewable transport fuels. Pioneer Hi-Bred International, a subsidiary of DuPont, is playing a role in this new partnership, according to Pioneer President Dean Oestreich. He says the first jointly developed product the partnership will bring to market is biobutanol. “Butanol is simply another molecule that is different than ethanol, but it’s also a fuel. And what we’ve done here is we’ve found a way, through use of our science, to make the process more efficient and economically viable.” Oestreich says biobutanol and ethanol in a blend can actually make a better fuel.
Here’s an inteview with Oestreich about the announcement and the potential for biobutanol. Pioneer Interview (7 min MP3)
FL Governor Signs Energy Bill at Ethanol Plant Site
The planned site of Florida’s first major ethanol facility served as the backdrop for Governor Jeb Bush this week as he signed into law the four-year, $100 million Florida Renewable Energy Technologies and Energy Efficiency Act, designed to encourage the development of alternative fuel technologies in the state.
U.S. EnviroFuels is planning a 40 million gallon per year facility at Tampa Bay’s Port Sutton (see previous post). The company is expected to break ground in August, and begin operations by October 2007. Read more in this Tampa Bay Business Journal article.
Tailgating With The Commissioner
Making our arrival in Laramie, WY enjoyable was the Commissioner of Tailgating, Joe Cahn.
Joe is a chef who travels the interstate meeting interesting people and tailgating at every chance. He’s going to do this for us again in Omaha with a “Taste of America.” I asked him to tell people that besides the corn he will roast, it can also be made into ethanol to fuel the cars and trucks that get you to the tailgate party.
Here’s what Joe had to say yesterday: Commissioner Cahn Interview (3 min MP3)
Domestic Fuel coverage and participation in the AASHTO Interstate 50th Convoy is sponsored by the Ethanol Promotion and Information Council.
Blogging Ethanol
There are a lot of cameras floating around on this trip and you have no idea when someone’s going to take your picture. This is an ethanol blogger in action.
Right now it’s getting late. We’ve got a dominos game going on here in the lobby of the hotel in Laramie, WY.
I think it’s time to call it quits although we don’t have an early start or far to go tomorrow!
Windmill Farm
Cruising along I-80 today I came across a form of renewable energy sitting on a hilltop. These windmills are just huge.
You can see them from so far away and then it takes forever to get close to them.
I counted over 100 in this windmill farm. Then after getting around the hill there was another group on the next hill.
I don’t know much about wind power but as I’ve been driving the interstates in the last few years I’ve been seeing more and more of these. You can find out more about it here.
Domestic Fuel coverage and participation in the AASHTO Interstate 50th Convoy is sponsored by the Ethanol Promotion and Information Council.
Governor Jon Huntsman Likes Ethanol
This morning Utah Governor Jon Huntsman, Jr. greeted the interstate convoy. He brought his black Harley to escort us to the Wyoming line. Here you can see him getting ready to saddle up and lead us out of town.
Prior to getting on his motorcycle Governor Huntsman made a few remarks which I recorded for you. He talks about the importance of the interstate system and to my surprise mentioned ethanol and renewable fuels in a very positive way. He said that we’ve got to think more about renewable fuels like ethanol.
Listen to Governor Huntsman here: Governor Jon Huntsman Ethanol Comment (1 min MP3)
Listen to Governor Huntsman here: Governor Jon Huntsman Full Remarks (5 min MP3)
Here’s a short video clip of the Governor getting on his bike to lead us out: Governor Huntsman Leads The Way (1 min WMV)
Domestic Fuel coverage and participation in the AASHTO Interstate 50th Convoy is sponsored by the Ethanol Promotion and Information Council.
Starting Out In Salt Lake City
We got started bright and early this morning in Salt Lake City. We made a short trip to a local park to wait for Governor Huntsman to meet us.
Here’s the convoy lined up with the Ethanol truck in the middle line.
Domestic Fuel coverage and participation in the AASHTO Interstate 50th Convoy is sponsored by the Ethanol Promotion and Information Council.
New Ethanol Enzyme Technology
Genencor International, a division of Danisco A/S, announced today the availability of a new acid fungal protease enzyme product for use in the ethanol industry. According to a company release, the new product, called FERMGEN™ will be introduced this week at the Fuel Ethanol Workshop in Milwaukee, Wisconsin.
Thanks to Erick Erickson in Nebraska for forwarding the release to me.
Sweetening the Ethanol Pot
Brazil makes almost all of its ethanol from sugar, and some US lawmakers in sugar-producing states would like to see more of that here. The question is whether it would be economically viable to do so.
AP reports the U.S. Department of Agriculture is expected to issue a long-awaited study around July 1 on the viability of converting sugar into ethanol. Lawmakers from Minnesota, which produces sugar beets, and sugarcane leader Florida hope for a positive answer.
“It would be absurd in 10 years if we’re doing 60 billion gallons of ethanol, and the only crop in America that’s not participating is sugar,” said Sen. Norm Coleman, a Minnesota Republican and one of Congress’ leading champions of sugar-based ethanol. Sen. Bill Nelson, a Florida Democrat, tried unsuccessfully last year to get the Senate to require refineries across the country to use 100 million gallons of sugar-based ethanol a year.
“It’s not going to happen unless there is a push from Congress with the incentives,” Nelson said, short of a major disruption in the oil supply to the U.S.
Coleman and Nelson are backing legislation sponsored by Sen. Evan Bayh, D-Ind., that would encourage the use of renewable fuels, including the 100 million-gallon mandate for sugar-based ethanol.
Famine to Feast?
Just a few weeks ago, the media was focused on there not being enough ethanol to meet the demand with the phase out of MTBE. Now we’re seeing articles questioning if we might be heading toward producing too much ethanol.
Forbes’ Dirk Lammers writes “some analysts say the burgeoning industry faces risks of oversupply, volatile commodity prices and a dependence on government subsidies.”
A Bloomberg News piece by Joe Carroll says “Within two years, planned expansion by ethanol producers will push U.S. supplies past demand, according to Standard & Poor’s.”
The dire predictions come on the heels of VeraSun’s shining initial public stock offering last week raised $419.8 million. The stock skyrocketed to $30 by market close on Wednesday. The company‘s shares fell in the days afterward to close at $25.25 Friday. Shares of Bill Gates’ investment Pacific Ethanol have fallen 43 percent in the past month. Meanwhile, two other ethanol companies, Hawkeye Holdings Inc. and Aventine Renewable Energy Holdings Inc., are planning their own initial share sales later this year.
“Investors poured $14.3 billion into U.S. ethanol stocks in the past 12 months, according to data compiled by Bloomberg.”
Like anything else, the key is moderation – too much expansion too fast could ultimately wind up hurting the inudstry. But, also like anything else, there’s a rush to cash in while it’s hot.