USDA Offers Incentives for Biomass for Energy

John Davis August 26, 2015

Enrollment is underway for farmers and forest landowners to get financial assistance for growing new sources of biomass for energy or biobased products. This U.S.Department of Agriculture (USDA) news release says the money comes from the Biomass Crop Assistance Program (BCAP).

Biomass energy facilities or groups of producers may submit proposals for new BCAP project areas. Proposals will be accepted on www.grants.gov through Nov. 6, 2015. USDA will also allocate $7.7 million towards four existing BCAP project areas in New York, North Carolina, Ohio/Pennsylvania and Kansas/Oklahoma, targeting the establishment of an additional 10,500 acres of shrub willow, giant miscanthus, and switchgrass for energy. Project area sponsors include Chemtex International, Aloterra Energy LLC, Abengoa Biomass LLC and ReEnergy Holdings LLC. Farmers and forest landowners may enroll for biomass establishment and maintenance payments for these four sites through Sept. 25, 2015.

In June, USDA began accepting applications from foresters and farmers seeking financial assistance for removing biomass residues from fields or national forests for delivery to energy generation facilities; the deadline for those applications is Sept. 4, 2015. The retrieval payments are provided at a cost-share match of $1 for $1 up to $20 per dry ton with eligible crops including corn residue, diseased or insect infested wood materials, or orchard waste. The energy facility must first be approved by USDA to accept the biomass crop, and deliveries to the facilities can continue until Dec. 11, 2015.

So far, BCAP has provided incentives for producers across more than 48,000 acres in 71 counties and 11 different project areas.

bioenergy, biomass, USDA

MO Lawmakers Support RFS

Cindy Zimmerman August 26, 2015

During a visit to the Missouri State Fair last week, two members of the state’s Congressional delegation were asked their opinions on the Environmental Protection Agency’s proposed volume obligations for biofuels under the Renewable Fuel Standard.

Sen. Roy Blunt (R-MO) hopes EPA will listen to the concerns of the industry. “I think it’s important that we become as energy self-sufficient as we can and renewables are an important part of that,” said Blunt during an interview at the fair. “We have great potential in more American energy of all kinds and the potential of how much we can add to that in renewables and what that does to the ag economy and production agriculture generally in terms of that product being available not just for fuel but for food is important.”

Sen. Blunt also comments on EPA’s Clean Water Rule and other issues in this interview: Interview with Senator Roy Blunt

Rep. Vicky Hartzler (R-MO) says EPA tried to come up with a compromise with the proposed rule. “It was better than we hoped in some ways, but it was worse than we had hoped,” said Hartzler. “I think they should have just followed the law and continued on allowing a greater percentage of our fuel to come through renewables. I’m hopeful that we’ll somehow be able to increase that level.”

In this interview, Hartzler also comments on other issues important to farmers in her state. Interview with Congresswomen Vicky Hartzler

Audio, Ethanol, Ethanol News, Government, RFS

E15 Approved for 2016 Fiat Chrysler Models

Cindy Zimmerman August 26, 2015

Fiat Chrysler Automobiles (FCA) had approved the use of E15 (15 percent ethanol and 85 percent gasoline) in its model year 2016 Chrysler/Fiat, Jeep, Dodge and Ram vehicles.

According to the new owners manuals for the vehicles, “Non-Flex Fuel Vehicles (FFV) are compatible with gasoline containing up to 15% ethanol (E15).” The decision means that FCA joins General Motors and Ford in covering E15 in its warranty statements. GM started covering E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles. More than 12 percent of the vehicles sold so far in the United States in 2015 have been FCA vehicles.

“FCA’s decision to join GM and Ford provides clear evidence that the tide on E15 has turned,” said Renewable Fuels Association president and CEO Bob Dinneen. “FCA customers will be afforded a benefit that will likely lower their weekly motor fuel bill: the freedom to choose what fuel to put into their vehicles.”

RFA has been concerned about FCA’s reluctance to embrace E15 for the past three years, and Dinneen specifically called on Chrysler to approve E15 during his State of the Industry address at this year’s National Ethanol Conference.

automotive, Car Makers, E15, Ethanol, Ethanol News, RFA

Farm Equipment Sales Stacking Up?

Jamie Johansen August 25, 2015

Our latest ZimmPoll asked the question, “Who’s your pick now for GOP candidate?”

When you have nearly 20 GOP candidates, you are bound to have many opinions. Our latest ZimmPoll proves that, but one opinion was clear. Donald Trump took the majority of the votes. The rest were scattered. Candidates from both sides had the opportunity to speak at the Iowa State Fair’s Soapbox, but I believe it’s too early to form a strong opinion.

Here are the poll results:

Jeb Bush – 7%
Ben Carson – 10%
Chris Christie – 4%
Ted Cruz – 5%
Mark Everson – 0%
Carly Fiorina – 8%
Jim Gilmore – 2%
Lindsey Graham – 1%
Mike Huckabee – 5%
Bobby Jindal – 2%
John Kasich – 9%
George Pataki – 1%
Rand Paul – 0%
Rick Perry – 1%
Marco Rubio – 6%
Rick Santorum – 1%
Donald Trump – 30%
Scott Walker – 6%
Other – 2%

Our new ZimmPoll is now live and asks the question, How are farm equipment sales this year?

It’s Farm Progress Show time again where all the latest equipment and technology will be on display for farmers to think about buying. But with crop prices lower this year, the question is, will they? Whether you are a buyer, a seller or just an observer – let us know what you think.

ZimmPoll

New Biodiesel Techs, Feedstocks Help Expand Bioheat

Joanna Schroeder August 25, 2015

Doug Root works in the world of biofuels in his role with the Ag Utilization Research Institute (AURI) where he looks for new opportunities for Minnesota commodities and co-products. One example: biodiesel. Root spoke during the Biodiesel/Bioheat Forum in Mankato, Minnesota where East met Midwest, or the home of Bioheat met the home of soybean production.

There are new technologies, explained Root, including new technologies to make biodiesel, new opportunities to utilize the biofuel, and new markets to expand to. There are also opportunities for reduced cost, quality and alternative feedstocks for manufacture of biodiesel or sale into the bioheat market and into the transportation fuels market.

Root said its been exciting to see the biodiesel industry mature and see the improvements in biodiesel quality, year after year to the point where there are virtually no longer low-temperature issues with the biofuel.

You can listen Chuck Zimmerman’s interview with Doug Root here: Doug Root, Ag Utilization Research Institute

Biodiesel/Bioheat Forum Photo Album

advanced biofuels, Audio, Biodiesel, Bioheat, Soybeans

NREL Studies E15 Infrastructure

Joanna Schroeder August 25, 2015

The National Renewable Energy Laboratory (NREL) has been studying current gas retailer’s infrastructure to determine if the equipment is already certified for E15 and flex fuels such as mid-level ethanol blends (E30, E40, E85). If so, the cost to a retailer adding E15 and other ethanol blends will be much less than a retailer who has to upgrade all his/her equipment – a definite cost barrier to more stations adopting emerging ethanol blends.

During the American Coalition for Ethanol’s (ACE) annual Ethanol Conference, held in Omaha, Nebraska, NREL Senior Analyst Kristi Moriarty, discussed the study and demonstrated how retailers can identify opportunities with their current fueling equipment and begin the process of adding E15 as one of their fuel choices.

Listen to Kristi Moriarty’s presentation here: Kristy Moriarty, NREL

2015 ACE Annual Meeting Photos

ACE, ACE Ethanol Conference, Audio, biofuels, E15, Ethanol

Biomass to Grow in Biofuels & Other Sectors

John Davis August 25, 2015

Right now, most producers of power from biomass are struggling to become cost competitive compared to non-renewable resources including coal and natural gas. But that could soon change. A new analysis by Taiyou Research says biomass energy production, as well as bioproduct production, will grow, thanks to benefits from national level programs, energy efficiency incentives, and financial incentives targeting the expansion of the renewables market that will create demand for additional biomass power capacity globally between 2013 and 2035.

The markets of biomass for energy are developing rapidly and becoming more international. A remarkable increase in the use of biomass for energy needs parallel and positive development in several areas and there will be plenty of challenges to overcome. Currently, only a limited number of modern bioenergy technologies are viable at market prices, which include Brazilian sugar-based ethanol and wood based heating in Northern Europe, and industrial applications such as cogeneration technology based on residues from production processes, including those in sugar factories and timber mills.

As biomass power projects are largely very capital-intensive, this remains a significant challenge for a number of utilities in entering countries with abundant feedstock availability. Going forward, the Clean Development Mechanism (CDM) program and availability of carbon credits for renewable energy projects will drive the growth of the biomass power market.

You can read the complete report here.

biofuels, biomass

Producer Panel at #ACE15

Cindy Zimmerman August 25, 2015

The theme of this year’s American Coalition for Ethanol (ACE) convention was “Quiet Ingenuity, Bold Advance” and one of the last sessions of the event featured three ethanol producers who embody that slogan.

Delayne Johnson of Quad County Corn Processors has the distinction of being CEO of the plant to produce the country’s very first gallons of commercial cellulosic ethanol just last year. The plant has produced about two million gallons of the fuel in the past year.

Johnson gave an update on what’s new with the 15 year old company and how they are innovating to stay profitable. Delayne Johnson, Quad County

Jeff Oestmann with East Kansas Agri-Energy is excited about their renewable diesel project under construction.

“Product diversity is key,” said Oestmann. “One of the nice things about renewable diesel is that it can run on its own. Obviously we’re building the plant to run on corn oil, but it can run on any kind of oil, animal fat, or greases.”

Listen to Oestmann give his update here: Jeff Oestmann, East Kansas Agri-Energy

Ray Defenbaugh of Big River Resources talked a lot about the future of the industry, both for agriculture and ethanol.

“What I’m really concerned about is saving the family farm,” said Defenbaugh. “What we’re doing here is an important job.”

Defenbaugh is involved in many organizations, from ACE to RFA to the U.S. Grains Council and more – and he encouraged everyone to get involved as well. Ray Defenbaugh, Big River Resources

2015 ACE Annual Meeting Photos

ACE, ACE Ethanol Conference, Ethanol, Production

Brazil Sets Record for Ethanol Consumption

John Davis August 25, 2015

Brazil hit a record high in ethanol consumption in July. The country’s ethanol industry group, the Union of Sugar Cane Industry Association (UNICA), says Brazilians used 1.55 billion liters, or about 400 million gallons, breaking a previous record of 1.51 billion liters in December 2009.

The national demand for light fuels increased 3.4% compared with July 2014 and 2.75% as compared to the previous month (June / 2015). Meanwhile, C gasoline consumption increased only 2.3% between June and July 2015.

According to UNICA Technical Director, Antonio de Padua Rodrigues, this continued expansion of biofuel consumption reflects the competitive price of the renewable front of its fossil competitor, gasoline.

“In many states, the price parity between hydrous ethanol and gasoline follows at levels lower than the technical ratio of 70% of vehicle efficiency. I draw attention to São Paulo, where the parity stood at around 62% and Mato Grosso with 60%, “noted Rodrigues.

Brazil, Ethanol, Ethanol News, International

Hart Home Comfort Adds Bioheat to Usurp Competition

Joanna Schroeder August 25, 2015

Ray Hart with Oakdale, New York-based Hart Home Comfort, is a Bioheat dealer who distributes the biodiesel heating oil blend across New York and Long Island. He spoke during the Biodiesel/Bioheat Forum that took place in Mankato, Minnesota and hosted by Minnesota Soybean. His company was an early adopter of Bioheat and thought it would be a great renewable fuel to set themselves apart from their competition. And it worked.

His company started with one truck and only a few customers and today his company has a fleet, hundreds of customers and their own terminal where they blend the biodiesel into the heating oil. Hart said that along the way there were a few obstacles. At the time they began selling Bioheat no one had heard of the product before. Education is an ongoing challenge, said Hart, who has been selling Bioheat for nine years but noted that more and more customers are asking for the fuel.

Hart said that they try to do everything possible to source the biodiesel as local as possible. He added that the event was a great opportunity to meet some of the people, including the farmers, who are growing the soybeans to make the biodiesel that has helped his business become successful.

You can listen Chuck Zimmerman’s interview with Ray Hart here: Ray Hart, Hart Home Home Comfort

Biodiesel/Bioheat Forum Photo Album

advanced biofuels, Audio, Biodiesel, Bioheat, Soybeans

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