Surplus US Sugar Sold to Ethanol Makers

John Davis

usda-logoIn an effort to get rid of surplus sugar and produce green fuel, the US Department of Agriculture has sold a large block of the sweetener to ethanol makers. This article from Ethanol Producer Magazine says the government sold the sugar rather than just forfeiting it under the Feedstock Flexibility Program for Bioenergy Producers.

The program requires the USDA to purchase sugar and sell it as feedstock for bioenergy producers in order to avoid forfeiture of sugar pledged as collateral by processors when securing nonrecourse community loans for them Commodity Credit Corp. Sugar purchased by the CCC under the program is sold on a competitive basis to bioenergy producers. The regulation establishing the program requires that purchasers use the sugar to produce biofuel, including ethanol, butanol or other marketable biofuels as CCD determines.

In this sale, USDA sold a reported 136 thousand tons of refined beet sugar to bioenergy producers through FFP, about a third of the nearly 377,000 tons that was offered by processors. While the government sold the sugar at a pretty steep loss of more than $53 million, that is less than if the USDA had to forfeit the sugar without the proceeds at all.

Ethanol, Ethanol News, USDA

Biodiesel Industry Biggest Victim of RIN Fraud

John Davis

KotrbaWhile taxpayers and investors are often talked about as the victims of the recent Renewable Identification Numbers (RIN) fraud cases, this opinion piece from Biodiesel Magazine writer Ron Kotrba makes the case that the biodiesel industry and those who play by the rules are the biggest victim of this crime.

It is those fine people, you, who make up a gross majority of the biodiesel industry, who suffer mostly. The stigma, the regulatory hoops through which you are now made to jump to maybe get a fair price on your RINs, the ammunition these fraudsters give Big Oil and legislators in the war to dismantle RFS, these are the biggest of wounds from the unnamed victims of biodiesel fraud.

In addition to calling out the e-Biofuels case, Kotrba goes on to chide the alleged frauders at FOGFuels who used their ill-gotten gains, not to keep a struggling company afloat, but to live lavish lifestyles with luxurious vacations. But he hopes the industry can shake this dark chapter.

The e-Biofuels investigation has been looming over the industry for a very long time, and it is good to finally see it progress to the point where charges have actually been filed. Will the publicity gained from the e-Biofuels case harm the biodiesel industry’s reputation even further, or since this case has been going on quietly for so long, will the culmination of charges filed allow the U.S. biodiesel industry to move forward with one less fraud case hanging over its head?

Biodiesel, Opinion

Environmental Impacts of Biofuel Feedstocks Studied

John Davis

corn_stover03 Photo: USDOE-NRELA two-year study has examined the environmental impacts of feedstocks used for biofuels. Minnesota Daily reports researchers from the University of Minnesota found that there are some fundamental differences between how the Environmental Protection Agency, the Department of Energy and the Department of Agriculture, look at biofuel production.

All three agencies differed in crop location, which Hill said is an important clarification for researchers, policymakers and biofuel investors. If the researchers had not figured out there was this difference, other scientists might only use one agency’s predictions and their conclusions would be misled.

“Our group is looking at the environmental impacts of biofuels,” [bioproducts and biosystems engineering assistant professor Jason] Hill said. “We need to understand the future of what that’s going to look at.”

“It helps us tease out the benefits and negatives,” BBE graduate student Brian Krohn said. “Some of those … lead to a U.S. landscape that’s better for the environment, and some of that leads to landscapes that have a very high negative impact.”

The biggest concern in the study is the use of corn stover for biofuels. While it is possible to take just enough of the material off the fields to get a good amount of feedstock and leave enough for soil health, the researchers did worry too much would be removed.

“If corn stover becomes a significant player in ethanol,” BBE PhD student Tom Nickerson said, “Minnesota will have a pretty big role in producing ethanol for America.”

Balance is the key, with the researchers concluding that no pathway is perfect.

biofuels, Environment, Research

Growth Energy Urge Producers to Get Involved

Cindy Zimmerman

buis-absoluteGrowth Energy CEO Tom Buis was pleased to be part of the New Holland American Ethanol Producers Club event at Absolute Energy near Lyle, Minnesota last week to encourage the nearly 200 growers in attendance to continue the great progress ethanol has made for agriculture.

“It’s even farmers beyond just corn farmers,” Buis said. “A rising tide lifts all boats and all the data shows that and what a great run rural America has had after decades of struggling to make ends meet they finally have been able to get a decent price from the market place. And when farmers do well that money turns over several times in the local economy.”

Buis also talked about how important ethanol has been to the livestock economy with the co-product of distillers grains. “We’ve expanded the availability of feed, both here at home and worldwide, with the ethanol industry,” he said.

Buis thinks that with all Congress has on its plate right now calls to change or even repeal the Renewable Fuel Standard (RFS) are unlikely to go anywhere this year, but that is no reason for the industry to be complacent. “We have to keep telling our story,” he said. “If you don’t get in there and speak up for yourself, nobody’s going to do it for you…take two minutes and explain to the policy makers how important this is to your livelihood.” Interview with Tom Buis, Growth Energy
New Holland American Ethanol Producers Club photo album

Audio, Equipment, Ethanol, Growth Energy, New Holland

Eco-Energy Inks Deal with MN, Iowa Ethanol Makers

John Davis

ecoenergyTennessee-based biofuel and ethanol marketer Eco-Energy has signed deals with ethanol makers in Minnesota and Iowa. The company announced the new multiyear marketing agreement with Heron Lake BioEnergy, in Minnesota, as well as agreement extensions with Granite Falls Energy, located in Granite Falls, Minn., and Central Iowa Renewable Energy, now known as Corn, LP, located in Goldfield, Iowa.

“Our team is excited to partner with the great team at Heron Lake. We continue adding partners to our platform and generating value for our independent ethanol producers. We look forward to working with their team for years to come,” stated Chad Martin, CEO of Eco-Energy.

“Our long standing relationship with Eco-Energy has been beneficial to our company. I believe the Eco team shares the same set of values and resolve as our CORN, LP team. This is one of the major ingredients in our successful partnership,” stated Brad Davis, GM at Central Iowa Renewable Energy.

Eco-Energy now markets for 18 plants across the North America and handles more than 10% of the ethanol market.

Ethanol, Ethanol News

Hong Kong Biodiesel Maker Soon to Come Online

John Davis

ASBplantA Hong Kong biodiesel maker looks to go online soon, and when it does, it will be the city’s biggest biodiesel refinery, turning waste oil into the green fuel. This story from the South China Morning Post says ASB Biodiesel will start up next month and turn out 100,000 tonnes of biodiesel a year.

The plant will refine 600,000 tonnes each year of grease trap waste into pure “B100” biodiesel blends for construction, transport and, later, petrol companies. About 95 litres of biodiesel can be produced with every 100 litres of waste oil.

That will be enough to offset 3.6 per cent, or 260,000 tonnes, of greenhouse gas emissions from transport each year, according to the company. But vehicle emissions of nitrogen dioxide and coarse pollutant particles (PM10) are only slightly lower for biodiesel than for regular diesel.

Company officials also expect to turn wastewater from the processing into bio-gas to power the plant’s operations. While most of the biodiesel now is slated to go to Europe, the officials expect one day most of it will be consumed in Hong Kong.

Biodiesel, International

Corn Price Drop Helps Ethanol Make Money Again

John Davis

corn-harvestA drop in the price for the price for the primary feedstock for ethanol, corn, is helping ethanol producers make money again on the green fuel. This article from the Minneapolis (MN) Star Tribune looked at the industry tracking service Biofuels Benchmarking and how the new corn crop is helping put those margins back in the black.

“We are forecasting a good, solid year, as good as Blue Flint’s ever had,” said Greg Ridderbusch, president of the Maple Grove-based holding company for Blue Flint Ethanol in Underwood, N.D.

For the quarter ended in June or July, five of seven Minnesota-affiliated ­ethanol producers that release financial statements reported profits. Among those with improved results were Blue Flint and Heron Lake BioEnergy, based in Heron Lake, which reported net losses in the first quarter.

Most of the ethanol producers tracked by the Star Tribune reported getting higher prices per gallon for ethanol during the quarter — up to 13 percent more than the same period in 2012. Ethanol sales ­volumes also were up, due partly to the closing of some U.S. plants, ­producers said.

In a separate, private survey of 45 U.S. ethanol makers, Christianson & Associates of Willmar, Minn., reported that almost all plants broke even or made money in the last quarter. That’s a big shift from recent quarters when only highly efficient plants made money.

“In the next two quarters, I think things will remain fairly consistent and even rise as far as earnings are concerned,” said Paula Emberland, who manages Biofuels Benchmarking.

Also, when you consider that tighter margins in the last couple of years forced many ethanol producers to find more value-added items to get into the mix while cutting costs, that should set up the ethanol industry well for the future.

corn, Ethanol, Ethanol News

Vermont Energy Company to Offer Biodiesel

John Davis

bournes1A Vermont company with a history of offering bioheat – a blend of biodiesel and heating oil – will soon offer biodiesel at the pump for motor vehicles. Bourne’s Energy announced it is opening a Montpelier branch.

“When a new Bourne’s Energy location opens up, it’s because we were asked to be there and the same is true for Montpelier,” says Peter Bourne. “Montpelier is driven towards what’s best for Vermonters and supports being as eco-friendly and self sufficient as possible. Our interest in the environment, our children and Vermont’s future match perfectly so it was no surprise people are receptive to Bourne’s being here.”

The new Bourne’s location comes with a bonus being positioned beside a local fuel transporter/dealer, Kurrle Fuels. Kurrle Fuels will soon be implementing a Bourne’s biodiesel pump giving customers an opportunity to purchase greener, cleaner fuel for their diesel powered vehicles and equipment. By using biodiesel, people are engaging in ecologically and economically savvy practices such as cutting down on carbon emissions, reducing wear and tear on their vehicles and equipment as well as sustaining local jobs and cutting back on fossil fuels that are much more toxic. Benefits of biodiesel hold true for Bioheat as well.

Bourne’s Energy has been offering bioheat for the last couple of years, as well as wood pellets and propane as cleaner, alternative fuels for its customers.

Biodiesel

Google Purchases More Wind Power in Texas

John Davis

googlewindSearch engine giant Google has increased the amount of wind energy it will use to offset power used in its operations. On the company’s green blog, Google is touting a purchase of 240 MW from the Happy Hereford wind farm outside of Amarillo, Texas.

This agreement represents our fifth long-term agreement and our largest commitment yet; we’ve now contracted for more than 570 MW of wind energy, which is enough energy to power approximately 170,000 U.S. households.

The Happy Hereford wind farm, which is expected to start producing energy in late 2014, is being developed by Chermac Energy, a small, Native American-owned company based in Oklahoma. The wind farm will provide energy to the Southwest Power Pool (SPP), the regional grid that serves our Mayes County, Okla. data center.

The structure of this agreement is similar to our earlier commitments in Iowa and Oklahoma. Due to the current structure of the market, we can’t consume the renewable energy produced by the wind farm directly, but the impact on our overall carbon footprint and the amount of renewable energy on the grid is the same as if we could consume it. After purchasing the renewable energy, we’ll retire the renewable energy credits (RECs) and sell the energy itself to the wholesale market. We’ll apply any additional RECs produced under this agreement to reduce our carbon footprint elsewhere.

Google says this is just one way it’s trying to make renewable energy available to its data centers and the communities they are in, pointing to other wind agreements in Scandinavia, North Carolina and Oklahoma as examples of that.

Wind

Brazil to Import 1-1.5 Bln Liters American Ethanol

John Davis

brazilBrazil is expected to import 1-1.5 billion liters of American ethanol this winter. This story from Reuters says the imports are expected from December to April when the sugarcane-producing region is between harvests.

“We are going to import corn ethanol during the center-south interharvest. Today the price is right. It’s cheaper than local anhydrous ethanol,” [ethanol analyst from Job Economy Julio Maria] Borges said.

He said that imports would help meet growing demand for the biofuel. The Brazilian government raised the mandatory blend for ethanol in commercial gasoline to 25 percent on May 1 from 20 percent previously.

Brazil has also been exporting some of its ethanol to the United States, primarily, where it wins a premium due to its advanced biofuel status under the Environmental Protection Agency’s Renewable Fuels Standards.

Brazil’s center-south region is expected to produce 25 billion liters of ethanol this season, up 3.6 billion liters from last year.

Ethanol, Ethanol News, International