Sugar Not So Sweet For Ethanol

Cindy Zimmerman

Producing ethanol from sugar cane or sugar beets in the U.S. would cost about 2 1/2 times more than it costs to produce it from corn. That is according to a long-awaited USDA study on the economics of producing ethanol from sugar authored by the agriculture department’s top economist Keith Collins. The detailed report compares production scenerios for sugar cane, beets, raw sugar and molasses adding the net cost of the feedstock to the processing cost to derive a total cost per gallon.

The bottom line, according to the report, is this:USDA

Corn ……………. 1.05/gallon ethanol
Cane ……………. 2.40/gallon ethanol
Beets …………… 2.35/gallon ethanol
Raw sugar ……… 3.48/gallon ethanol
Processed sugar.. 3.97/gallon ethanol
Molasses ……….. 1.27/gallon ethanol

While the report does indicate that molasses is the only feedstock that compares favorably to corn in terms of production costs, Collins notes that molasses is a by-product of sugar production and “if you took all the molasses in the United States and you turned it into ethanol, you would have 150 million gallons. We’re going to produce five billion corn-based gallons of ethanol this year. So, academically it’s true that it’s our most cost effective option among the sugar feedstocks, but practically it doesn’t represent much of an opportunity.”

More on this report later – audio, graphics and links to come.

Ethanol, Production

Mixed Marriage

Cindy Zimmerman

AndersonsWe will probably be seeing more of these types of business unions take place in the near future.

Houston-based Marathon Oil Corporation and The Andersons, Inc. of Ohio have signed a letter of intent which “could lead to the formation of a 50/50 joint venture that would construct and operate a number of ethanol plants.” Marathon Oil According to a press release, the formation of the joint venture and other related activities are subject to approval by each company’s board of directors and the execution of definitive agreements.

Ethanol

MO Governor Says E-10 Bill is a Win-Win

Cindy Zimmerman

Blunt Ethanol Bill Here’s another picture of Missouri Governor Matt Blunt at one of the several signing ceremonies for the state’s new 10 percent ethanol standard. Here he puts pen to paper as FFA students look on at Missouri Ethanol, LLC located in Laddonia, Mo. The governor also wrote a personal opinion piece in the Kansas City InfoZine about the legislation that will take effect January 1, 2007.

The photo is courtesy of the Missouri Corn Growers Association.

Ethanol

Don’t Drink the Fuel

Cindy Zimmerman

Here is a story from the Des Moines Register about a recovering alcoholic who tried to get unemployment benefits from the ethanol plant he worked for because he drank some 190-proof alcohol that spilled into a holding pond.

At the hearing, the judge asked, “Why would you drink fuel?”
“I don’t have a good explanation for that,” he replied. “Curiosity?”

At least the judge had the good sense to deny him the benefits, even on the grounds of terminal stupidity.

Ethanol, Miscellaneous

Cellulosic Roadmap

Cindy Zimmerman

DOE The U.S. Department of Energy has released an ambitious new research agenda for the development of cellulosic ethanol as an alternative to gasoline. According to a DOE release, the 200-page scientific “roadmap” cites recent advances in biotechnology that have made cost-effective production of ethanol from cellulose, or inedible plant fiber, an attainable goal. The report outlines a detailed research plan for developing new technologies to transform cellulosic ethanol—a renewable, cleaner-burning, and carbon-neutral alternative to gasoline—into an economically viable transportation fuel.

Cellulosic, Energy, Ethanol

Look It Up

Cindy Zimmerman

NBB Biodiesel has hit the big time – it’s in the dictionary now. The National Biodiesel Board is pleased that the word “biodiesel” appears in the 2006 update of the Merriam-Webster’s Collegiate Dictionary, Eleventh Edition . This marks the first time that it has appeared in the dictionary, and signifies that biodiesel is becoming a household word. What’s more, word has it that Merriam-Webster put biodiesel on the short list of examples of new words added to the dictionary. That means “biodiesel” joins the ranks of “ringtone,” “soul patch” and “supersize” in drumming up interest in modern lexicography.

Biodiesel

Bird Fueled

Cindy Zimmerman

Fibrowatt A British company is using poultry litter to fuel power plants in the US. Fibrowatt, based in Philadephia, has projects planned or under development in poultry-growing states across the country, including Minnesota, Maryland, Mississippi and North Carolina. According to the company’s website, Fibrowatt Ltd built the world’s first three poultry litter fueled power plants and has licensed its technology to Fibrowatt LLC for the US market.

Energy, Miscellaneous

Show Me the Ethanol

Cindy Zimmerman

Blunt Ethanol Bill Missouri Governor Matt Blunt is signing the state’s new ethanol bill several times over this week. The governor is visiting with corn growers from the southeast to the northwest part of the state for ceremonial bill signings, mostly in areas where ethanol plants are planned or in operation. The legislation requires gasoline sold in Missouri to contain 10 percent ethanol (E-10) by 2008.

“I am pleased to sign this bill giving Missourians access to the affordable, homegrown gasoline they want and that they can be proud to use when they fill their tanks,” Blunt said. “This renewable fuel standard benefits consumers, our economy, the environment, and Missouri farmers.”

Blunt signed the bill in Webb City, St. Joseph, Kirksville, Palmyra, and St. Louis on Wednesday, and will be in Laddonia, Macon and Malta Bend on Thursday.

In the photo by Ron Graber of the Carthage Press, Kayla Garrison of the Carthage FFA receives a copy of the new ethanol bill from Governor Blunt during Wednesday’s signing ceremony in Webb City.

Ethanol, Government

New Company To Produce Environmentally-Friendly Corn Ethanol

Cindy Zimmerman

Western Milling California-based Western Milling, and venture capital firm Khosla Ventures have announced the formation of Cilion, a company that will operate modular, standardized 55 million gallons per year ethanol plants. According to a release, the new company would use a variety of innovations to make plants that are cheaper and greener than standard corn-to-ethanol plants, substantially reducing the need for fossil fuels in ethanol production. Cilion plans to have 8 plant units in production by 2008 for a total of 440 million gallons per year capacity. The first three plants are expected to be in California.

Ethanol

Hawaii Gets Ethanol Project Funds

Cindy Zimmerman

Sen Akaka The Senate Energy Committee has approved $1 million for an ethanol demonstration project in Hawaii. Committee member Senator Daniel K. Akaka (D-HI) announced the project in a press release this week, saying the “appropriation is significant because the State of Hawaii passed a law that went into effect in April 2006, requiring at least 10 percent of all gas sold in Hawaii contain an ethanol blend.” The $1 million gives the State of Hawaii the ability to start on research and development of sugar-to-ethanol, which is one way to create ethanol.

Ethanol, Government