E15 Comes to Cambridge, Nebraska

Joanna Schroeder

Anew E15 pump in Cambridge NebraskaAnew Travel Center in Cambridge, Nebraska is now offering E15 to consumers for use in 2001 and newer vehicles. E15 is currently available in 14 states.

“Anew Travel Center is pleased to announce the opening of our new fueling facility,” said Cliff Meeuwsen, member of Anew. “Through the installation of the Flex Fuel dispensers, we aim to promote the use of cleaner vehicles while also displacing the country’s dependence on foreign oil and creating employment positions that will benefit the local economy.”

The station will have ten pumps—five Flex Fuel dispensers that offer ethanol blends including E10, E15, E30 and E85, and five flexible fuel dispensers that offer biodiesel blends including B0, B2, B5 and B20. In doing so, Anew Travel Center also joins more than 3,000 retailers throughout the nation who have the infrastructure available to provide motorists with a choice of various ethanol blends.

“Seeing retail leaders like Anew, MAPCO Express, Murphy Oil and Minnoco offering E15 continues to validate that there is a viable market for higher ethanol blends. When given the choice, consumers will seek the fuel that costs less, is better for our environment and improves the performance of their vehicles. The momentum building around E15 is really quite impressive,” stated Tom Buis, CEO of Growth Energy whose association assisted Anew in the process of offering E15 at the pump.

E15, Ethanol, Growth Energy

Old Pipeline Could Get New Life Carrying Biodiesel

John Davis

Hawaii_state_flagAn old pipeline in Hawaii originally used to transport petroleum-based asphalt could get a new life carrying biodiesel. This article from the Hawaii Tribune-Herald says the state Board of Land and Natural Resources is considering whether to allow the Shell Oil pipeline built in the 1960s at Hilo Harbor to carry the green fuel.

A new company, Hoku Kai Biofuels LLC, has acquired the old asphalt plant property and wants to use the pipe to transport vegetable-based biofuels from cargo ships to storage tanks on its land, according to the state Department of Land and Natural Resources.

BLNR will consider whether to grant in concept a 65-year easement for the pipeline. Final approval is contingent on a finding of no significant impact from an environmental assessment.

In a memo to the board, DLNR staff say the biofuels would be “distributed to various power producers as an alternative to fossil fuels.”

Officials with Hoku Kai Biofuels say they have had some conversations with Hawaii Electric Light Co. about buying the fuel.

Biodiesel

Minnesota Biodiesel Mandate Survives Delay Attempt

John Davis

mnstatelegis1A bill that would have delayed implementation of a 10 percent biodiesel mandate in Minnesota diesel fuels was stopped in a state legislative committee. This story from WDAZ-TV says the bill from Sen. Melisa Franzen, D-Edina, was defeated overwhelmingly in the state Senate Commerce Committee.

She said most cars and light trucks are built to handle 5 percent biodiesel, which now is required to be sold in Minnesota, not the planned 10 percent, known as B10.

Biodiesel supporters said they have heard this argument before, reaching back years to when ethanol first was required to be blended with gasoline. Problems have been few and far between once the state mandated that gasoline and diesel contain plant-based fuel, they said.

Jerry Schoenfeld, who represents soybean farmers and the Minnesota Biodiesel Council, said those who support Franzen’s bill sit on a biodiesel task force but never brought up their complaints until the bill surfaced recently.

Both sides used Illinois as an example to support their cause. Those wanting a B10 delay pointed to fuel-blamed engine problems such as clogged filters and acceleration hesitation. Biodiesel supporters said that even in Illinois, Mercedes-Benz praised biodiesel and urged owners to monitor oil levels and strictly follow oil change intervals, but few problems have been reported.

A 2008 law in Minnesota upped the current 5 percent blend to 10 percent when state officials believe there is enough biodiesel to meet that demand, and they had decided that will come on July 1st.

Biodiesel, Government, Legislation

UNICA Pleased With CARB Proposal

Cindy Zimmerman

UNICAThe Brazilian sugarcane ethanol industry is pleased with the California Air Resources Board (CARB) proposal last week to revise Indirect Land Use Change (iLUC) numbers for biofuels.

Brazilian Sugarcane Industry Association UNICA applauded CARB for “once again declaring that sugarcane ethanol is one of the most environmentally friendly biofuels supplying today’s market.”

UNICA North America Representative Leticia Phillips notes that the CARB staff proposal to revise ILUC estimates under the state’s Low Carbon Fuel Standard shows the Brazilian sugarcane biofuel generates about half the indirect emissions that CARB originally suggested during its rulemaking process in 2009. “If implemented, these revised ILUC estimates will confirm what numerous other studies have shown: sugarcane ethanol is one of the most environmentally friendly biofuels supplying today’s market,” she said in a statement.

Phillips adds that UNICA looks forward to providing detailed comments to this CARB proposal as they have done in the past.

Brazil, Ethanol, Ethanol News, Indirect Land Use, International

Wind Power Line to Move Energy to the East

John Davis

wind energy in U.SA proposed $2.2 billion, 750-mile long, high-voltage overhead transmission line could solve some of the issues of getting wind energy from the areas out west producing it to the areas in the east that need that power. This article from the Minneapolis Star Tribune says Clean Line Energy Partners’ idea is to build a line from the wind turbine farms of Kansas to Indiana, where it can be distributed to urban areas. But the project is meeting some resistance from farmers in the areas it would traverse.

The idea is supported by environmental groups who say it is an opportunity to take a big step forward for an energy source that could reduce the nation’s reliance on fossil fuels and cut air pollution. Clean Line has four other transmission line projects in the works in the West and Midwest.

Clean Line says the project will be an economic boon, with all four states seeing new jobs for construction and local companies providing things like parts and concrete. Lawlor said consumers would benefit, too, by the new source of power that would drive down electricity costs.

Yet many landowners have organized in opposition to Clean Line. They worry about whether the towers and lines will reduce property values, get in the way of farming operations like crop-dusting and irrigation, and even create health risks for those living so close to high-voltage wires.

“This is some of our best ground,” said Kent Dye, 56, who farms about 7,000 acres in northeast Missouri’s Monroe County. “This line — there’s no proven need for it. There are no contracts to provide power, no contracts to sell on the other end.”

Clean Line officials believe that after they have a chance to talk to the farmers and ranchers who have concerns, they’ll be able to convince them of the benefits of easements they can collect money on and the long-term environmental benefits for everyone.

Wind

Analysis: Despite EPA Issues, Ethanol Profitable

John Davis

While most of the news around ethanol seems to focus on its issues with the government, a new analysis shows that the green fuel is in one of its longest profitability runs ever. This analysis from the University of Illinois shows that despite more recent news about troubles with the Environmental Protection Agency (EPA) and its proposal to cut the amount of ethanol in the Nation’s fuel supply, things have been pretty positive for the ethanol industry lately.

There have been basically four sub-periods in terms of net profits: i) high profits from 2007 through mid-2008, ii) breakeven from mid-2008 through the end of 2011, iii) losses for 2012 through early 2013, and iv) high profits again from spring 2013 through the present. The most recent period is the longest run of uninterrupted profits since the series began in early 2007. During this one-year run, profits averaged $0.93 per bushel of corn processed and reached a new high of $2.55 per bushel in early December 2013. The picture presented here is certainly not one of an industry that has suffered because of recent policy proposals.
ethanolprofits1
The author cites several factors that could keep the recent run of profits from continuing for a longer period of time, including DDGS prices at unprecedented high levels, as well as documented “co-integrating” relationship between ethanol and corn prices, simply, if the ethanol price is too high relative to corn prices, then either the ethanol price must fall or the corn price must rise.

Ethanol, Ethanol News

Farmers Offered Incentive to Use Propane

John Davis

perc-farmFarmers are being offered an incentive to use clean-burning propane in their operations. During the recent Commodity Classic in San Antonio, Tx., Mark Leitman, director of business development and marketing for the Propane Education and Research Council (PERC), talked to Tom Steever with Brownfield Ag News and told him that his council is funded by a 4/10-of-a-cent checkoff that helps research, safety and training programs, and includes a commitment to ag-based operations in the Propane Farm Incentive Program.

“We’re constantly looking for new technologies to invest in, trying to find a new application for propane in agriculture or make a grain dryer, for example, and make it better,” he said, adding that new propane engines are much more efficient than the older models, boosting output by 25 percent or more, as demonstrated from their non-scientific findings from last year’s farm incentive program that had farmers reporting a 36 percent reduction in fuel use and 57 percent in cost savings. That’s why he’s optimistic they’ll get more farmers to sign up for this year’s incentive. “We’d love farmers to take advantage of our Farm Incentive program, where they could receive an incentive of up to $5,000.”

Mark admitted a perfect storm of issues – big crop drying years and a colder than usual winter, among other things – did cause a significant spike in prices for propane this year, but he believes some important lessons were learned that will help his members keep prices more stable in the future.

“We’re taking a look at the infrastructure and trying to figure out where our organization can invest in ways to improve things so we’re better prepared moving forward,” he said.

More information on the incentive program is available at Agpropane.com.

Listen to Mark’s interview with Brownfield Ag News here: Mark Leitman, PERC
2014 Commodity Classic Photos

Audio, Commodity Classic, Propane

NYC’s First Large-Scale Biodiesel Plant Coming

John Davis

unitedmetro1The first large-scale biodiesel in New York City could soon become a reality. This article from the New York World says former Republican mayoral candidate and Gristedes magnate John Catsimatidis is resurrecting the Metro Fuel Oil project.

Catsimatidis-owned United Biofuels is seeking approval from the New York State Department of Environmental Conservation for a permit to convert an existing fuel-storage facility on Newtown Creek to take vegetable oil and turn it into fuel that can power diesel-burning vehicles.

Catsimatidis seized the opportunity to acquire the biodiesel operation in the midst of his 2013 campaign, buying it from bankrupt Metro Fuel Oil Corporation and promising to preserve 130 employees’ jobs.

“We wanted to buy a piece of it,” Catsimatidis said in a phone interview. “Before we knew it, we owned the entire thing. By accident, we bought it.”

Metro Fuel Oil had been granted $10 million in bond financing and other benefits from the New York City Industrial Development Agency in 2007 to construct the biodiesel facility but went bust before it could finish the job.

Officials say the refinery would produce between 40 and 50 million gallons of biodiesel per year, and they hope to have it open by the end of this year.

Biodiesel

Beers Greened with Biodiesel for St. Pat’s Day

John Davis

erin1Today is St. Patrick’s Day, and of course, in pubs, bars and restaurants across the country (and the globe), patrons will be toasting the Irish saint and the Emerald Isle with a green beer or two (or many, many more). Why not make your choice a truly green beer and not just one colored with food dye? This article from Biodiesel Magazine says there are many choices of breweries that use biodiesel in their operation.

One example is a company whose flagship Pale Ale brew even has a green label: Sierra Nevada. Ranked as the second largest U.S. craft brewing company by the Brewers Association, Sierra Nevada has used a blend of up to 20 percent biodiesel (B20) for the past six years. Biodiesel blends fuel 15 long-haul and local delivery trucks for the Chico, Calif., company.

“At the brewery we’re always striving to essentially close the loop, and biodiesel helps us turn what could be a waste product into something useful,” said Ryan Arnold, Sierra Nevada communications manager. “The trucks perform well. With up to B20, we don’t see much change in mileage.”

The company grows eight acres of hops and has an onsite garden at its restaurant in Chico, where it also fuels tractors with biodiesel. Other suitability initiatives include diverting about 99.8 percent of its solid waste from the landfill and housing one of the largest privately owned solar arrays in the country.

Several other choices for biodiesel-green beers include Red Lodge Ales, which has used biodiesel for almost 10 years in its small fleet of delivery vehicles; New Belgium Brewing Company, which includes the tasty Fat Tire brands and uses biodiesel made from recycled restaurant grease to fuel trucks and generators for its famous Tour de Fat, a philanthropic “bicycle, beer and bemusement” event that will travel to 10 cities this year; Steam Whistle Brewing, a Toronto, Canada-based craft brewery has a commercial delivery fleet made up entirely of biodiesel-fueled Mack straight trucks and Isuzu Cabover trucks; and Stone Brewing Co., which has a fleet using B20.

So have a truly green beer this St. Patty’s Day. Long live biodiesel and Erin go Braugh!

Biodiesel

Rail Problems Impacting Ethanol Supplies

Cindy Zimmerman

snow-trainOne impact of the long, cold winter across the nation has been weather-related rail disruptions that are taking a toll on ethanol supplies and production.

The record winter weather patterns that have caused repeated snowstorms have resulted in stalled trains, frozen controls and increased demand for rail cars. All that has made it difficult to move ethanol to the Northeast.

The Energy Information Administration reported last week that stocks of ethanol stood at 15.9, down 2.4% from the previous week, the lowest level of the year so far. Stocks are well below the 20-day supply mark for the second week in a row and on the East Coast stocks of ethanol fell to their lowest level on record last week, at 4.6 million barrels compared to 6.4 million this time last year.

“Naturally, limited regional mobility leads to limited regional supply which can impact prices, but market observers believe this is a temporary situation that will soon be corrected,” said Renewable Fuels Association Executive Vice President Christina Martin.

The backlog in transportation is causing ethanol plants to slow production somewhat. According to EIA data, ethanol production averaged 869,000 barrels per day (36.50 million gallons), down 25,000 barrels from the previous week and the lowest in eight weeks.

The backups have also been delaying grain shipments from last year’s record crop but rail company officials, including BNSF and CSX, say they are working hard to get everything back to normal.

Ethanol, Ethanol News, Oil, transportation