USDA Predicts Big Corn and Soybean Crops

Cindy Zimmerman

USDAUSDA is forecasting the third largest corn crop on record and the second largest soybean crop in a new planted acreage update released today.

U.S. growers are forecast to produce 13.7 billion bushels of corn this year, according to the report from USDA’s National Agricultural Statistics Service (NASS). That is actually a four percent decrease from last year’s production, but if realized will be the third largest production on record. The numbers are up 156 million from the July projection, with the season’s first survey-based corn yield forecast at 168.8 bushels per acre, 2.0 bushels higher than last month’s projection.

Overall, the report says that growers nationwide planted 88.9 million acres to corn, unchanged from the June estimate. As of August 2, 70 percent of U.S. corn was reported to be in good or excellent condition, three percentage points below the same time last year.

U.S. soybean growers are now forecast produce the second largest crop on record although one percent less than last year. NASS forecasts U.S. soybean production of 3.92 billion bushels with a yield of 46.9 bushels per acre, which would also be the second largest on record, down 0.9 bushels per acre from the record set in 2014. Growers are expected to set new record-highs in Arkansas, Georgia, Kentucky, Michigan, Minnesota, Nebraska, South Dakota, and Virginia.

The new World Agricultural Supply Demand Estimate also released today increased usage of corn for ethanol from 5.225 million bushels to 5.250 million and lowered the average corn price estimate for the year five cents to $3.35-3.95 per bushel. “With the lower prices, domestic demand should kick up,” said analyst Jack Scoville of the PRICE Futures Group during the Minneapolis Grain Exchange call on the report. “Which will make ethanol that much more attractive in the corn … definitely should help biofuels consumption.”

MGEX Crop Call with Jack Scoville
Audio, Biodiesel, biofuels, corn, Ethanol, Ethanol News, Soybeans, USDA

Iowa E15 Retailer Grants Available

Joanna Schroeder

Iowa fuel retailers interested in adding E15 ethanol blends to their consumer fuel options have an opportunity to apply for grants through the Iowa Renewable Fuels Infrastructure Program (RFIP). The program gives retailers financial assistance to install or upgrade fuel dispensing equipment to offer E15.

E15 at Des Moines Iowa Kum and Go station

Photo Credit: Joanna Schroeder

“Adding E15 to the state renewable fuels infrastructure program provides a missing link to expanding mid-level ethanol blends, and providing another low-cost fuel option to more than 80 percent of the vehicles on the road today,” said Iowa Renewable Fuels Association (IRFA) Managing Director Lucy Norton. IRFA was integral in getting the program passed. “We already have retailers lining up to take advantage of this new eligibility because they have customers asking for cleaner-burning E15. Iowa retailers want to provide economical fuel choices to their customers, and E15 is the lowest-cost fuel on the market for the majority of vehicles on the road, so it’s getting a lot of attention.”

Since 2007, the Iowa RFIP has provided cost-share grants to increase the accessibility of higher ethanol and biodiesel blends. The program provides monetary assistance for the installation of blender pumps and E85 and biodiesel dispensing equipment, as well as bulk biodiesel terminal storage tanks. This year, the RFIP was expanded to also provide financial assistance for the upgrade or installation of dispensing equipment for the purpose of offering E15 as a registered fuel. Qualifying projects are eligible for up to 70 percent of the installation costs, or a maximum of $50,000 per retail location.

In a recent poll when participants were asked if they would consider using E15 if they owned a 2001 and newer vehicle and it was cheaper than E10, 70 percent said yes. Additionally, 76 percent of respondents who said they would purchase E15 also said they would drive out of their way to buy E15 to save between 5 and 10 cents per gallon, if their usual station did not offer E15.

“This poll shows what we expected: an overwhelming amount of Iowans support the use of lower-cost, cleaner-burning E15,” Norton added. “For the vast majority of Iowa’s E15 retailers, E15 is often being sold 5 to 10 cents cheaper than E10, and with more than three-quarters of Iowa E15 supporters willing to drive out of their way to save with E15, fuel retailers should take notice.”

biofuels, E15, Ethanol, Iowa RFA

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1The global wave and tidal energy market was worth US$25 million in 2013. It is expected to grow at a CAGR of 64.1% from 2014 to 2020, eventually reaching a value of US$10.1 billion in 2020. A new research report released by Transparency Market Research, titled “Wave and Tidal Energy Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020,“ makes this prediction for the global wave and tidal energy market based on comprehensive primary and secondary research.
  • The 31st European Photovoltaic Solar Energy Conference and Exhibition (EU PVSEC 2015) will take place from September 14-18, 2015 at the Congress Centre in Hamburg, Germany. The event will cover the entire PV value chain including market challenges and opportunities. The event is jointly organized by EC-JRC, ENEA, ETA-Florence and the EU PV Technology Platform as well as IRENA, and will offer a deep insight into specific topics along the most recent technology, market and business trends.
  • The Clean Power Plan (CPP) will have a negative impact on the country’s coal industry, with the potential loss of up to 60 Gigawatts (GW) of coal power capacity by 2020, according to an analyst with research and consulting firm GlobalData. Pavan Vyakaranam, Associate Project Manager covering Power, says that of the 326 GW of current coal power capacity in the country, around 20 GW is expected to retire in the next five years and a further 30-40 GW will find it difficult to meet the emission standards set by the U.S. Environmental Protection Agency (EPA).
  • Boralex Inc. has closed financing totalling $64.4 million for the Côte-de-Beaupré community wind farm in partnership with the Côte-de-Beaupré Regional County Municipality. The Côte-de-Beaupré wind farm, covered by a 20-year power purchase agreement with Hydro-Québec, is a community wind power project under a partnership between the Côte-de-Beaupré RCM (49%) and Boralex (51%). Ten Enercon E-92 wind turbines are being installed on the private lands of the Seigneurie de Beaupré and commissioning is expected in December 2015.
Bioenergy Bytes

Tigo Powers Solar-Battery, Off-Grid Home

Joanna Schroeder

Tigo Energy along with PV installer Renewable Energy Services (RES) has developed one of the largest residential solar microgrid installations in the world located on the Bakkan Hale property in Hawaii. Earl Bakken, inventor of the first battery-powered pacemaker and founder of Medtronic, is behind the solar-battery project that will be equipped with 176kW ground mounted PV moduels powered by Tigo. The system will be capable of generating 350Mwh per year.

“I want to demonstrate using a solar and battery-powered microgrid is the best solution because it allows us to meet all of our power needs day and night.” said Bakken. “We are attracted to Tigo’s platform in particular because their technology is of the highest quality, which will enable us to generate solar power at the optimal level for many years into the future.”

Tigo powers Bakken Hale ground mounted system (Photo: Business Wire)

Tigo powers Bakken Hale ground mounted system (Photo: Business Wire)

Bakken Hale utilizes Tigo’s Smart optimization product, that according to the company, enables customers to monitor their systems at the module-level, deactivate high voltage with a push of a button, and allow for the greatest design flexibility on systems of any size. The technology performs data acquisition via a cloud-connected data logger across new systems and retrofits of all sizes. Tigo-optimized modules work efficiently with battery backup systems, charging from the sun during the day, then discharging during the night.

“We are proud to be the only company capable of servicing a range of inverters and charge controllers for off-grid PV systems,” said Tigo’s chairman and CEO Zvi Alon. “We look forward to continue to increase the number of hybrid PV+Battery systems and working on similar solar-battery projects worldwide.”

Roland Shackelford, Vice President of RES added, “This project was done with the highest level of workmanship and components selected from every nut and bolt, to the use of Tigo. Tigo’s reliability and ability to get the maximum power output from each module is exactly what we were looking for. The per-module monitoring and performance notification capabilities are benefits that ensure that the system is working optimally in the years to come.”

Clean Energy, Electricity, Energy Storage, Solar

Officials Highlight Need for Stable Energy Policy

Joanna Schroeder

The U.S. Department of Energy (DOE) has released new data showing the cost of wind energy has declined by nearly two-thirds over the last six years according to the report 2014 Wind Technologies Market Report. DOE Energy Secretary Ernest Moniz noted, however, that to keep the momentum going there must be stable energy policy.

64522_WindTechMrktRprt_cover“With declining costs and continued technological development, these reports demonstrate that wind power is a reliable source of clean, renewable energy for American homes and businesses,” Secretary Moniz said in a statement. “Through continued investments and the help of stable policies, we’re confident that wind power will keep playing a major role in creating jobs and shaping America’s clean energy future.”

In reaction to the report, the American Wind Energy Association (AWEA) said this success has been driven by performance-based renewable energy tax incentives that drive U.S. manufacturing and American ingenuity. The report finds that since 2009, costs have fallen 65.5 percent. This makes the U.S. the global leader in total wind energy production.

“While this report is good news, extending the Production Tax Credit and Investment Tax Credit remains critical for keeping Americans at work, reducing the cost of wind energy and continuing to scale up this homegrown resource through the end of this decade,” said Tom Kiernan, CEO AWEA. “Wind energy is increasingly cost-competitive in several parts of the U.S., but we need stable, predictable policy to continue bringing this consumer benefit to every corner of the country. Policy stability will keep this American economic success story going.”

There must be, called Kiernan, an extension of the Production Tax Credit (PTC) and Investment Tax Credit (ITC) and said the near-uncertainty in these credits puts investments at risk. The last time the credits were not expanded the U.S. wind energy industry lost nearly 30,000 jobs and caused wind installations to drop 92 percent the following year. Kiernan concludes by noting that Federal policy plays a critical role in the wind industry’s decisions to make long-term investments in U.S. manufacturing facilities, research and development, and worker training to create the modern American wind industry, and thus, the credits must stay in place.

Clean Energy, Electricity, Legislation, Wind

Pearson Fuels to Sell E85 for $.85 in Sacramento

John Davis

pearsonfuelsCalifornia-based Pearson Fuels will start selling E85 in the Sacramento area. And the company says it will celebrate the event by selling the green fuel for just 85 cents per gallon today between 8:00 a.m. to 5:00 p.m.

The event is intended to introduce more members of the public to a fuel that many of their vehicles will burn. The event will be held at the following locations:

Shell 5103 Fair Oaks Blvd., Carmichael, CA 95608

Shell 730 29th Street. Sacramento, CA 95816

Shell 3721 Truxel Road, Sacramento, CA 95834

Shell 800 Ikea Court West Sacramento, CA 95691

Oliver Gas 1009 Oliver Road Fairfield, CA 94534

Pearson Fuels General Manager Mike Lewis states, “We are very proud to make this announcement. These five locations in Sacramento, West Sacramento and Fairfield are owned by some of the most progressive fuel station owners in the state. These stations were selling E85 before we made our agreement with them. We are happy to be working with them and helping to recognize and promote their progressive decision to offer something most stations do not. We encourage the public to vote with their dollars to improve the environment and reduce our dependence on foreign oil.”

E85, Ethanol, Ethanol News

IBISWorld Offers Buying Strategies for Ethanol

John Davis

ibisworldThe ethanol market can be a pretty volatile place when it comes to pricing. IBISWorld is offering a report on how to identify where volatility exists, not just in ethanol, and how to reduce risks in price instability.

Because of fluctuating key input costs, prices of diesel and ethanol have displayed a high level of price volatility. While diesel and ethanol are both used for fuel, they do not share the same production process because diesel fuel comes from crude oil and ethanol comes primarily from corn…

Meanwhile, the price of corn is estimated to fall 21.7% in 2015, which will play a large part in the 29.2% drop in ethanol prices expected this year. Similar to diesel, ethanol prices are forecast to reverse and then stabilize at mild growth in the coming years.

The fuel market is known for its booms and busts, which can foster a hectic procurement environment. As such, buyers are encouraged to engage in long-term contracts with their fuel suppliers to reduce their exposure to price fluctuations. By locking in favorable rates now while prices are low, buyers can avoid the risk of anticipated prices rises in the future.

More information is available here.

corn, Ethanol, Ethanol News

North Dakota Firefighters to Get Ethanol Training

John Davis

rfalogo1Firefighters in North Dakota will get some training on ethanol safety. The Renewable Fuels Association (RFA) and North Dakota Firefighter’s Association will co-host seven free Ethanol Safety Seminars this month across the state, focusing on numerous areas of ethanol safety to target first responders, hazmat teams, safety managers, and local emergency planning committees, as well as the general public.

Starting Aug. 17, Ethanol Safety Seminars will be held in the following locations:

Aug. 17: Bowman Fire Department in Bowman | 5:30–10 p.m.
Aug. 18: Dickinson Fire Department in Dickinson | 9 a.m.–2 p.m.
Aug. 18: Richardton Fire Department in Richardton | 5:30–10 p.m.
Aug. 19: Washburn Fire Department in Washburn | 5:30–10 p.m.
Aug. 24: Stutsman County Law Emergency Center in Jamestown | 9 a.m.–2 p.m. & 5:30–10 p.m.
Aug. 26: Hankinson Fire Department in Hankinson | 5:30–10 p.m.
Aug. 27: Larimore Fire Department in Larimore | 5:30–10 p.m.

The goal of these seminars is for attendees to gain a complete ethanol emergency response training experience that they can put to use immediately in the field and pass along to other first response teams. A majority of this training is based on the “Training Guide to Ethanol Emergency Response,” a training package created by the Ethanol Emergency Response Coalition (EERC) that has been distributed throughout the United States and to several countries worldwide. These seminars are funded through a grant from the Department of Transportation’s Hazardous Materials Safety Administration.

“The North Dakota Firefighter’s Association is honored to partner with the Renewable Fuels Association to provide the Ethanol Safety Seminars to seven different locations throughout North Dakota,” said Renee Loh, executive director of the North Dakota Firefighter’s Association. “NDFA is grateful that this training can be offered to the first responders of North Dakota! We encourage all first responders to register for this important class.”

RFA officials say it is important that communities have the know-how to respond to ethanol emergencies quickly and effectively. Incidents are rare, but should they occur, these seminars will give first responders the necessary training they need to keep the public safe.

To register for a session, go to www.rfa.traincaster.com.

Ethanol, Ethanol News, RFA

Iowa State Fair to Host Prez Soapbox

Joanna Schroeder

dms-register-soapboxIowa State Fair visitors have an opportunity to see what presidential candidates think about energy and agricultural issues compliments of the Des Moines Register’s Presidential Soapbox series.

A majority of the presidential candidates from both parties have confirmed they will speak from the soapbox during the fair. A total of 14 Republicans and four Democrats are on the soapbox schedule starting Thursday August 13 through Saturday August 22. Notably missing from the list are the frontrunners for both parties – Hillary Clinton and Donald Trump.

Check the schedule from the Des Moines Register for updates. Candidate speeches will be live-streamed at DesMoinesRegister.com/SoapboxLive. The ZimmComm blogging team will be following the Presidential Soapbox series as well and bring you news of relevant issues.

Agribusiness, biofuels, Government, politics

Need Biomass? There’s an App for That

Joanna Schroeder

Genera Energy has developed a biomass app to use as a crop planning and learning tool for biomass farmers and landowners. The Biomass app has multiple features including a biomass crop library complete with detailed information, photos and range maps for the most utilized biomass crops in the U.S., along with the ability to overlap crop ranges in a live, interactive map function.

Genera-Logo-150x75“We are very pleased with the Biomass app’s features,” said Sam Jackson, vice president of business development for Genera Energy, Inc. “The information that the app is built on is the result of years of research and development in the biofuels management industry.”

According to the company, another key function, is a multi-function biomass calculator that helps the user determine how much biomass they’ll need for their specific situation, including conversion technology, conversion rate, and location. The results can then be emailed to the user. People wishing to convert biomass to biofuels, biochemical, bioproducts, or biopower, the app will provide realistic projections and crop suggestions based on actual, in-the-field studies and crop outcomes.

Jackson added, “Probably the most important aspect in developing the app was working directly with biomass producers, project developers, and policy makers across the different aspects of the industry. This helped us to develop an app specifically targeted to what users actually needed and wanted.”

The free version of the app is available for both Apple- and Android-based devices. Visit the Google Play Store or the Apple App Store from your phone to download.

advanced biofuels, bioenergy, biomass, bioproducts