Gator Ethanol Research

Cindy Zimmerman

This story is appropriate this week in honor of the Florida Gators basketball championship – especially since my husband and I are both UF alumni.

Research at the University of Florida’s Institute of Food and Agricultural Sciences is on the cutting edge of converting biomass to ethanol. IFAS sent out this release last May, prior to the existence of Domestic Fuel, but I recently found it and sent it along to my good friend and ace reporter Mike Rogers. You may have heard his voice on reports for major national radio networks. Anyway, after a week of trying he managed to track down Dr. Lonnie Ingram, IFAS professor of microbiology, who who has developed a biotechnology “bug” that converts biomass and other farm wastes into fuel. His breakthrough technology is basically a genetically engineered E. coli bacteria. The bioconversion technology is being commercialized with assistance from the U.S. Department of Energy (DOE). BC International Corp., based in Dedham, Mass., holds exclusive rights to use and license the UF-engineered bacteria. Lonnie Ingram

The picture shows Professor Ingram holding a Petri dish containing the new bacterium, while Greg Luli, vice president of research for BC International Corp.’s laboratory at the Sid Martin Biotechnology Center in Alachua, Fla. watches.

Listen to Mike’s interview with Dr. Ingram here: Listen To MP3 Ingram Interview

Go Gators!

Audio, Ethanol, Research

Clean Cities Congress

Cindy Zimmerman

Clean Cities Alternative fuels and advanced transportation technologies will be featured at the Clean Cities Congress and Expo 2006, which will be held May 7-10, in Phoenix, Arizona. The theme of this year’s Congress is “Fueling Economic Solutions” with a focus on cost-savings for alternative fuel fleets. “With oil prices nearing $70 a barrel, fleets are taking a financial hit,” said Will Kleindienst, chairman of the 2006 Congress. “Because of substantial incentives in the energy bill and the new cost competitiveness of alternative fuels, we’re attracting potential customers who never even considered using alternative fuels before.” Registration and other information is available on-line.

Biodiesel, Clean Cities Congress, Ethanol

Another CHS and US BioEnergy Deal

Cindy Zimmerman

CHS CHS Inc., one of the nation’s leading energy and grain-based foods companies, and US BioEnergy Corporation, an ethanol production and management company, announced today they have entered into a joint ownership of an ethanol and biodiesel marketing company, according to a news release. CHS, which formed when Cenex and Harvest States Cooperatives merged in 1998, acquired 28 percent ownership in U.S. BioEnergy Corporation in November. (see previous post)
US Bioenergy CHS has marketed ethanol-blended fuels for more than 25 years and currently is one of the nation’s largest suppliers of blended fuel products at 500 million gallons annually, distributed through 64 terminals. CHS became a shareholder of US BioEnergy in November of 2005. US BioEnergy currently has two ethanol plants under construction, US Bio Albert City, a 100 million gallons/year (mgy) plant in Iowa and US Bio Woodbury, a 45 mgy plant in Michigan. In addition, US Bio Janesville, a 100 mgy plant in Minnesota and US Bio Hankinson, a 100 mgy plant in North Dakota are under development.

Biodiesel, Ethanol

More Terminals Offer Pre-Blended Biodiesel

Cindy Zimmerman

NBB Petroleum terminals in Texas, New York and Michigan have announced the availability of pre-blended biodiesel within the last month, according to a release from the National Biodiesel Board. Distribution Drive, a wholly owned subsidiary of Earth Biofuels, Inc. and Motiva Enterprises, an oil company headquartered in Houston, Tex., announced Monday that the Motiva Enterprises terminal in Dallas will now offer biodiesel at any blend level. That’s the one that got all the media attention this week, since it’s in “big oil” country. The others that opened with less fan fare were Sprague Energy in Albany, NY and RKA Petroleum Cos. in Romulus, Michigan.

Biodiesel

New Team Ethanol Driver Announced

Cindy Zimmerman

EPICThe ethanol legacy will live on with the Indy Racing League (IRL). Rahal Letterman Racing announced today the selection of Jeff Simmons as the driver for the No. 17 Team Ethanol Honda/Panoz/Firestone car. Simmons will replace Paul Dana who died March 26.

“Paul realized the benefits of using ethanol, and he worked hard to get the message out to everyone,” said Ethanol Promotion and Information Council EPIC. Executive Director Tom Slunecka. “We look forward to Jeff promoting the benefits of ethanol just as proudly as Paul did.”

Dana was a tireless promoter of ethanol and the architect of the agreement that switched all IndyCar Series cars to a 10 percent ethanol, 90 percent methanol blend this year. In 2007, the IRL will make the switch to 100 percent fuel-grade ethanol in all IndyCar Series cars. E10 (10 percent ethanol and 90 percent gasoline) is the fuel blend used by drivers all across the country in everything from minivans to lawnmowers. Increasingly, E85 (85 percent ethanol and 15 percent gasoline) is also available in many areas throughout the country.

Jeff SimmonsSimmons, a native of East Granby, Conn., is the winningest driver in IRL Indy Pro Series (IPS) history with seven victories. He has garnered extensive experience in the IPS, having run four seasons and twice finishing as the championship runner-up – in 2003 and 2005.

“I am honored to have the opportunity to promote the message and need for the clean-burning, renewable fuel ethanol and to become a member of Rahal Letterman Racing,” said Simmons, 29. “It is one of the most professional teams I could ever hope to be associated with, and I truly appreciate the faith that Bobby (Rahal) and the Team Ethanol sponsors have placed in me. The fact that I have this opportunity as a result of Paul’s passing is not lost on me, and I want to express my deepest sympathies to his family and friends.”

Listen to Jeff Simmons here: Listen To MP3 Jeff Simmons Announcement (Courtesy of Gary Truit, Brownfield Network)

Team Ethanol is comprised of the Broin Companies, Fagen Inc., ICM and 25 other companies who have joined together in a voluntary industry-wide coalition that represents over half of the industry. Ethanol is a high-octane, high-performance fuel that is clean burning, renewable and made in America. As a growing component of the U.S. gasoline supply, ethanol delivers improved vehicle performance for all passenger cars and trucks while reducing harmful emissions and improving air quality.

EPIC, Ethanol, Indy Racing

Midwest Grain Sale Going Down (Under)

Cindy Zimmerman

Midwest Grain By a 2 to 1 margin, the shareholders of Midwest Grain Processors last week approved a deal to sell majority ownership in their cooperative to Australian company Global Ethanol. Over 1,000 of the 1,300 members of the co-op in Lakota, IA turned out for the vote on Thursday. Dave Nelson, Midwest Grain Processors’ board chairman, told Agriculture Online “The turnout for the vote was unbelievable. It was better than a Presidential election turnout.” Not to mention more decisive. With 717 votes in favor and only 348 opposed, we probably won’t be hearing calls for a recount. However, those who were opposed to the deal remain opposed to the concept of foreign ownership in domestic fuel production. According to the Des Moines Register, “There wasn’t enough time to digest the information or investigate it thoroughly,” said Lennon Brandt, a farmer from Swea City. “I thought the vote might be close, but when people aren’t informed, they tend to trust the board.”
It’s the first time a foreign company has bought control of an ethanol co-op, but those in the industry believe the growth potential means it’s probably just the beginning.

Ethanol

Team Ethanol Will Go On

Cindy Zimmerman

The pain is still too fresh for Paul Dana’s friends in the ethanol industry to even start talking about it, but the questions are being asked, and the Wichita Business Journal got some answers from Team Ethanol sponsors ICM and EPIC. ICM

“Absolutely we’ll be back,” ICM President and CEO Dave Vander Griend says. “It’s a tragic, tragic loss, a very tough one for me personally. But the best thing we can do for Paul’s legacy is to continue on, and we’ll do that.” EPIC
Plans for the ethanol racing team are on hold this week out of respect for Dana’s memory, says Tom Slunecka, EPIC executive director.
But keeping Dana’s drive alive to promote ethanol awareness will take center stage later, he says.
“I think we owe it to him to prove his legacy true,” Slunecka says. “We owe it to him to march on in behalf of him, in behalf of the fervor he had for both ethanol and racing. Ethanol was far more than a sponsor to Paul.”

EPIC, Ethanol

Wait and See

Cindy Zimmerman

USDA’s Prospective Plantings report out Friday says that farmers will plant five percent less corn acreage this year and seven percent more soybeans than a year ago – mainly because of higher fuel and fertilizer costs. So, what does that mean for ethanol production? Don Roose, an analyst with U.S. Commodities says “This puts the end users on notice like ethanol plants,” according to this article in AgricultureOnline. The Des Moines Register reports that Al Larson, who manages NEW Cooperative’s seed warehouse in Knierim, is skeptical about the report’s findings. “Our yields here the last three years have been just phenomenal,” he said. “I think it might go the other way. Ethanol demand, I think, is going to drive a lot of it. It’s everywhere you look.”
USDA’s estimate was well below what the trade was expecting – almost two million acres less than the low end estimate – so skepticism may be in order. And, as always, yields will largely depend on the weather, which is not predicable in any year. So, we just have to wait and see what really happens this year.

Ethanol

BP Ethanol from Wheat and Fat

Cindy Zimmerman

BPTwo articles out of Australia talk about BP’s new ethanol plans announced this week – making it from wheat and animal fat. The Weekend Australian story, which actually was published tomorrow on the other side of the world, says BP “would be producing 200 million litres of biofuels within two years. More than half will be derived from tallow – the fat of cattle and sheep – which will be processed to extract ethanol. The ethanol will be mixed with normal petrol, allowing BP to market a blended fuel known as E10 throughout the country by 2008.” They will also be making it from wheat, according to this ABC news story, about 200,000 tonnes a year. Farmers Federation state president Trevor de Langrafft says the plant is a win for wheat farmers. “It’s great to hear such an initiative being developed in Western Australia,” he said.

Ethanol

Washington State Adopts Biodiesel Requirement

Cindy Zimmerman

NBB This week, Washington became the second state “to commit to making biodiesel an everyday part of the diesel fuel market.” According to a release from the National Biodiesel Board, Washington passed a bill that “sets a requirement that at least 2 percent of diesel sales by volume will be comprised of biodiesel, with 2 percent ethanol in the gasoline market.” The requirement is similar to a law that took effect in Minnesota in 2005.

The requirement goes into effect November 1, 2008 or when in-state production can meet the 2 percent requirement, whichever comes first. The law is expected to create demand for 20 million gallons of biodiesel annually in the first year. The U.S. Energy Information Administration reports that the state of Washington consumed one billion gallons of diesel in 2004.

NBB will be providing help with the implementation process.

Biodiesel