Over one quarter of Pacific Ethanol is now owned by Microsoft mogul Bill Gates. According to Reuters, Gates acquired 5.25 million shares convertible preferred stock on April 13 for $16 per share. Pacific Ethanol is building an ethanol production facility in California and said in late March it hoped the deal with Cascade Investment, Gates’s investment vehicle, would close by mid-April. Darn close.
Another New Plant For Nebraska
The Aurora Cooperative and Aventine Renewable Energy Holdings, Inc., plan to develop a new ethanol plant near Aurora, Neb, according to a press release. This 220 million gallon per year plant, with the first phase being 100 million, will be constructed on a 135-acre site adjacent to the property of the Nebraska Energy, LLC ethanol plant. 
“In addition to the ethanol project, we are also pleased to announce the first ag-bio multiplex in North America,” said George Hohwieler, President and CEO of the Aurora Cooperative. The 135-acre site named Aurora West will also include a state-of-the-art grain handling facility, a fertilizer complex, and a double loop railroad system to accommodate grain, fertilizer, ethanol, and DDG shipments accessing the Burlington Northern-Santa Fe (BNSF) mainline railroad.
Ethanol-to-Hydrogen Pathway Explored
The potential to develop the ethanol-to-hydrogen energy pathway is now being explored through the Upper Midwest Hydrogen Initiative, a public-private partnership run under the auspices of the Great Plains Institute in Minneapolis, according to an article on the Minnesota Corn Growers Association website. UMHI was formed to bring fuel cell technology into use in Minnesota, Iowa, Wisconsin, the Dakotas and Manitoba, Canada — and it is pursuing about $2 million to fund a hydrogen-fuel-cell bus demonstration project in Minnesota.
EPIC CityHome Sponsorship Podcast
The latest “Fill Up, Feel Good” podcast from the Ethanol Promotion and Information Council is about EPIC’s sponsorship of the CityHome™ Program (see previous post). The podcast features comments from both EPIC executive director Tom Slunecka and O2Diesel Corporation CEO Alan Rae about this program aimed at helping cities use an ethanol/diesel blend for municipal transportation.
The “Fill up, Feel Good” podcast is available to download by subscription (see our sidebar link) or you can listen to it by clicking here. (4:45 MP3 File)
Woody Biomass Grants
Reducing the risk of wildfires could help increase production of domestic fuels. Agriculture Under Secretary Thomas Dorr today announced nearly $4.2 million in grants to 18 small enterprises to develop innovative uses for woody biomass in national forests as sources of renewable energy and new products. According to a USDA press release, “This grant program helps to reduce the risk of wildfires by removing built-up fuel hazards and improves forest health,” said Dorr while here to announce several Earth Day initiatives by USDA. “In addition, these projects give an economic boost to our rural communities, increasing the nation’s sources of renewable energy.”
“I can’t believe somebody’s saying that”
Believe it, Mr. Secretary.
The headline was Agriculture Secretary Mike Johanns in Colorado on Earth Day reacting to a reporter’s question about ethanol being responsible for high gas prices.
Johanns response was, “The price of a barrel of oil went over $72 this week – and I rest my case.” Listen to the USDA newsline report here.
Phoenix Flex Fuel
E85 can now be sold in the greater Phoenix area. Arizona Governor Janet Napolitano recently signed a bill into law that will allow the alternative fuel to be available throughout Maricopa County, according to a release from the National Ethanol Vehicle Coalition.
“Our deep appreciation is extended to Representative Boone and his associates, as well as Weights and Measures, and the Legislative Staff for an important, well crafted and well needed piece of legislation,” said Colleen Crowninshield, Clean Cities Coordinator of the Tucson Regional Clean Cities Coalition. Good thing – since the Clean Cities Congress will be held in Phoenix May 7-10.
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Answering the Critics
During the “Truth about Ethanol” conference call last week (see previous post), I got to ask the guys to answer the critics who charge that ethanol and corn production rely too heavily on natural gas and nitrogen fertilizer. Bob Dinneen of Renewable Fuels Association, notes that the ethanol industry continues to evolve, “$11 natural gas is a great motivator to look at other technologies,” such as biomass gasification and methane digestors. “Our industry is unrecognizable from what it was five years ago, it will be unrecognizable again five years from now.” Jon Doggett with the National Corn Growers Association says farmers are using precision farming and precision fertilizer application, “we are producing the same units of corn with a third less fertilizer than we did seven years ago,” and seed companies are working on corn plants that use significantly less nitrogen than those being grown today.
The reporter after me asked the same question, so here is the complete Q and A on that topic. (2:20)
Slow Start For New Team Ethanol Driver
A crash during practice and another on lap 40 of the Indy Racing League Twin Ring Motegi gave new Team Ethanol driver Jeff Simmons an 18th place finish in the 20 car field over the weekend. Simmons was unhurt, but the No. 17 Ethanol car did sustain some damage. Needless to say, Simmons was disappointed with his Rahal Letterman Racing debut, according to Motorsport.com. “It is really disappointing for everyone on Team Ethanol. This is never the way you want to start anything. Crashing two cars in one weekend is something I have never done before. As disappointed as I am right now we will move past this and start to focus on Indianapolis.”
Meanwhile, his RLR teammates had better luck. Buddy Rice started 18th and finished 5th, while Danica Patrick started 14th and finished 8th.
Biofuels Hearing
The U.S. Senate Committee on Agriculture, Nutrition and Forestry will be holding a hearing on the “State of the Biofuels Industry” Wednesday, April 26, 2006 at 10:00 am. The witness list includes Renewable Fuels Association president Bob Dinneen, National Biodiesel Board CEO Joe Jobe, CHS Inc. Executive Vice President Jay Debertin and Iowa State University professor Robert C. Brown, Ph.D (read previous post about Brown’s bio oil research).