Read Past the Headlines

Cindy Zimmerman

Over 120 articles on a Google news search for ethanol are coming up with headlines blaming ethanol for gas shortages in Texas and on the East Coast. But if you read the whole article, there’s a little more to it than that.

Take this AP report, for example. The lead sentence says stations are facing shortages as “the industry grapples with a transition to more ethanol-blended fuel.” Read on and you find analysts “emphasized that the problem has more to do with delivery schedules than a dearth of fuel,” and that the problem will be temporary.

US Energy Secretary Samuel Bodman is quoted placing the blame for higher gas prices right where it belongs – on crude oil.

”There’s no simple way to bring down high crude prices,” he said, pointing out that the climb has been due to supply concerns stemming from global production disruptions and geopolitical tensions, as well as strong growth in global demand for oil. Crude futures for June delivery on the New York Mercantile Exchange closed at just above $75 a barrel, a record high. Gasoline futures for May delivery closed at $2.24 a gallon. ”I wish there were a magic wand I could wave that would cause prices to decline,” Bodman said. ”There isn’t one. We’re continuing to deal with the same issues we’ve been dealing with — suppliers having a hard time keeping up with demand.”

The supply disruptions are mainly due to terminal owners having to drain their tanks of MTBE-laced gasoline before they fill them up with ethanol blends, a delay that ideally should take maybe a day or so for any one terminal, making this a very short term shortage.

Ethanol

Pricing Right at the Pump

Cindy Zimmerman

This article in the Billings (MT) Gazette offers a refreshingly positive look at ethanol compared to many stories in the mainstream media this week. While acknowledging some of the concerns, such as negative publicity regarding the fuel’s energy balance and the lack of flex-fuel vehicles and E85 pumps, it notes that ethanol in Montana is being priced right.

Sherrie Allyn, manager of the Quealy Sinclair gas station in Laramie, said E85 was selling at $1.89 per gallon Friday, compared with $2.59 for regular unleaded. That’s a 27 percent savings, which more than makes up for a nearly 10 percent loss in fuel efficiency that new flex-fuel vehicles will have while running E85 instead of gas. “It seems to be picking up. More and more people are using it,” said Allyn, whose station is one of only three in the state selling E85.

The article also points out that the availability of flex-fuel cars and E85 pumps is increasing dramaticially and new technologies on the horizon offer even more-efficient methods for producing ethanol.

Ethanol, Flex Fuel Vehicles

Clean Cities Congress Highlights

Cindy Zimmerman

Clean Cities Congress Have you registered for the Clean Cities Congress May 7-10 in Phoenix yet? If not, here are a few good reasons why you should.
1. John McCain, U.S. Senator from Arizona, will welcome attendees to his home state on Monday, May 8.
2. Dr. Robert Hirsch, Senior Energy Program Advisor at Science Applications International Corporation, will give the keynote address Monday on why peak oil is a global problem of unprecedented proportions that deserves “immediate, serious attention.”
3. Toronto Star Auto Reviewer Jim Kenzie will provide an engaging look at alternative fuel vehicle and advanced technology options that are available in the marketplace today during Tuesday’s general session.
4. Lori Weiss, “Comedienne of an Environmental Nature,” will entertain during the closing general session on Wednesday, May 10.
5. You don’t want to be left out. With an expected 1,500 attendees and 85 exhibitors, this is the largest alternative fuel and vehicle technology gathering in the world.
Register on-line today. You’ll be glad you did!
Alternative Fuel Vehicle InstituteThe Alternative Fuel Vehicle Institute (AFVI) and Southern California Gas CompanySouthern California Gas Company are sponsoring Domestic Fuel coverage of the Congress.

Biodiesel, Clean Cities Congress, Ethanol

Toyota Moving Forward To Flex Fuel

Cindy Zimmerman

ToyotaToyota apparently intends to follow the U.S. car manufacturers flex-fuel lead and start producing cars that can run on ethanol. According to business reports out this week which site “an unnamed company executive” and a Toyota spokesperson, Toyota “acknowledged that Japan’s top auto maker was developing flexible-fuel vehicles, mainly for the ethanol-smitten Brazilian market for starters, but declined to disclose specific product plans.”

Ethanol, Flex Fuel Vehicles, Miscellaneous

Questions About Ethanol Imports and Tariffs

Cindy Zimmerman

Ethanol imports and the Brazilian tariff made up the majority of questions from the media during the “Truth About Ethanol” press conference Tuesday. Why do we need to import any ethanol if the industry can meet the demand? How much ethanol will we import this year? What about a temporary waiver of the Brazilian import tariff? What are the secondary tariffs on ethanol? How does the Brazilian tariff fit into the WTO negotiations and is it vulnerable to a challenge? Do you expect an unsuccessful effort to repeal the tariff and by who? Obviously this is an issue that the media believes is important. RFA president Bob Dinneen did a very good job of explaining the entire tariff structure for ethanol in response to one question. What I found interesting was that because ethanol can enter the US duty free from a number of countries – such as those in the Caribbean Basin Initiative – Brazilian ethanol can basically circumvent the secondary tariff by going through another country. Listen to Dinneen’s entire explanation here.

Audio, Ethanol

Ethanol Gets Media Ears

Cindy Zimmerman

The Truth About Ethanol press conference today (see previous post) lasted nearly an entire hour and included questions from media such as UPI, Chicago Tribune, Inside US Trade, Des Moines Register, Inside Washington, and Congress Daily as well as a number of farm journalists, although not as many as I would have expected. Bob, Bob and Jon did a pretty darn good job fielding some tough questions about the Brazilian tariff, in particular. It was the first question that was asked, in fact – do you think there will be a major legislative effort to remove the tariff? NCGA’s Jon Doggett answered simply, “No, I don’t.” When asked to elaborate, he said there are a lot of things congress won’t get done this year and this is on that list. RFA’s Bob Dinneen was a little more specific, “I don’t think there’ll be a successful effort to lift the tariff. The fact of the matter is, it’s not necessary.” Listen to the first Q and A of the Truth press conference here.
Like I said, this conference was almost an hour long, so I will break it down into smaller bites to feed over the next few days.

Audio, Ethanol

EPA Honors Willie

Cindy Zimmerman

WillieThe Pacific Southwest region of the Environmental Protection Agency today honored biodiesel advocate and singer Willie Nelson for his support of the cleaner burning fuel. According to the National Biodiesel Board, the award was presented during the agency’s eighth annual Environmental Awards Ceremony in San Francisco.

Nelson first heard about biodiesel two years ago from his wife, Annie, pictured here with him at the National Biodiesel Conference in February.

Biodiesel

Blogging The Clean Cities Congress

Chuck Zimmerman

Clean Cities CongressI’m happy to announce that I’ll be blogging the Clean Cities Congress in just a few short weeks. The event takes place May 7 – 10 in Phoenix, AZ.

Alternative Fuel Vehicle InstituteThe Alternative Fuel Vehicle Institute (AFVI) and its industry partners present unparalleled education and networking opportunities for fleet and policy professionals when it hosts its annual Clean Cities Congress and Expo at the Phoenix Convention Center, May 7-10, 2006.

“This showcase of alternative fuels and vehicles is a solutions-oriented marketplace,” says Annalloyd Thomason, AFVI Executive Director and organizer of the conference. “It is intentionally inclusive of all viable alternative fuels and advanced vehicle technologies that provide money-saving options for fleets.” The annual Congress features more than 100 speakers and is expected to draw 1,500 participants for 3 days of activities including: workshops, sessions, lectures, networking, a free public forum, and a trade show for industry professionals. The industry partners, official sponsors of the Congress, recommend the event for commercial, utility, and government fleets.

Southern California Gas CompanyIn addition to the AFVI, Southern California Gas Company is sponsoring Domestic Fuel coverage of the Clean Cities Congress. We really appreciate their support and plan to bring you a lot more information before, during and after the event.

Clean Cities Congress

Enzymes Enhance Ethanol Efficiency

Cindy Zimmerman

Dyadic Dyadic International, Inc. is working to make ethanol production more efficient. That’s just one of the uses this Florida-based company has found for biological products such as proteins, enzymes, polypeptides and other such things in the agricultural, industrial, chemical and biopharmaceutical industries. For example, they actually pioneered the stone-free method used to make “stone-washed” blue jeans. Instead of tumbling them in the washer with pumice stones, manufacturers use a cellulase enzyme isolated from a fungus to selectively modify the fabric surface. For real! Now they are redesigning the enzyme to “make ethanol quicker, better and cheaper,” according to Dyadic CEO Mark Emalfarb. Chuck interviewed both Mark and Dyadic Chief Science Officer Glenn Nedwin at BIO 2006, and it is a very interesting conversation about how this fungus-derived enzyme can help to make more ethanol from corn and also bring down the cost of making ethanol from other sources. Listen to it here: Listen To MP3 Dyadic Interview (8:00 MP3)
AgWired coverage of BIO 2006 was made possible by: Rhea & Kaiser Marketing Communications

BIO, Cellulosic, Ethanol