Biodiesel Production Exceeds 1 Billion Gallons

Joanna Schroeder

Biodiesel PumpAccording to statistics provided by the Environmental Protection Agency (EPA) biodiesel production in the U.S. broke the 1 billion mark for the second consecutive year. The total volume of nearly 1.1 billion gallons was roughly flat over 2011 production, exceeding it by just 6 million gallons.

“These numbers reflect the ongoing growth and development of our industry and represent real jobs at plants across the country,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board (NBB).”Biodiesel continues to account for the vast majority of the nation’s Advanced Biofuel production and is playing a significant role in diversifying our energy supplies with clean, American-made fuel.”

According to EPA numbers. production for the month of December totaled just 59 million gallons, the lowest monthly volume of the year. The December total marked the close of a year-end slump in which biodiesel production dropped significantly as Congress failed to renew the biodiesel tax incentive. However, with the new year brought the $1-per-gallon incentive renewal as part of the “fiscal cliff” legislation.

“It’s difficult not to wonder how much additional production and jobs could have been created if the biodiesel tax incentive had remained in place in 2012,” Steckel said. “It was a missed opportunity that significantly hurt many producers. But we are pleased that Congress reinstated the tax credit earlier this month and we expect significant growth in 2013.”

EPA’s reports biodiesel production as part of its Biomass-based Diesel category in the Renewable Fuel Standard (RFS). The EPA numbers show a total of just over 62 million gallons of Biomass-based Diesel for the month of December, but that figure includes several million gallons of renewable diesel production.

advanced biofuels, Biodiesel, biofuels, NBB

EC Proposes Duties on Imported Ethanol

Joanna Schroeder

Following an investigation that concluded U.S. exporters sell ethanol to Europe at illegally low prices after receiving subsidies, The European Commission (EC) has proposed a rare duty on all U.S. producers of ethanol. In response, the U.S. Trade Representative’s office expressed its disappointment in the EC proposal, seeking anti-dumping duties of 9.5 percent on American ethanol. The EC distributed a proposal to member states with a request that the regulation is adopted by February 22, 2013.

Ethanol ExportsThe American ethanol industry has been vocal on the issue and the Renewable Fuels Association (RFA) and Growth Energy, jointly released a statement. “America’s producers and marketers of ethanol are outraged by the news that the European Commission has proposed to the European Council an anti-dumping duty equivalent to 62.3 Euro per tonne on all ethanol produced in the United States, regardless of who produces the product or who sells it. This decision is unprecedented. Not only does it fly in the face of over 30 years of consistent practice by the EC, but it also violates numerous provisions of the World Trade Organization’s Agreement on Antidumping.”

Bob Dinneen, president of RFA added, “This proposal is legally vulnerable on numerous grounds. They selected six producers for investigation and none were found to be dumping; nonetheless, duties are being imposed. In addition, all those producers not selected for review are also being penalized, again with no dumping having been found.”

“We are exploring every option to overturn this decision. Our producers and trading companies cooperated fully with the Commission’s requests for information. In the end, it was all ignored in favor of what can only be described as a political decision to erect an artificial trade barrier,” concluded Growth Energy CEO Tom Buis.

According to an article in Reuters, shipments of ethanol from the United States to the EU are worth more than $930 million, or 700 million euros, a year.

biofuels, Ethanol, Exports, Growth Energy, International, RFA

Ethanol By-Product Officially Non-Hazardous

Cindy Zimmerman

The ethanol by-product and livestock feed known as distillers dried grains with solubles (DDGS) is now officially recognized as a non-hazardous cargo by the International Maritime Organization (IMO).

bargesThe official IMO classification became final and mandatory under the code of the International Maritime Organization on Jan. 1, 2013, after action by the U.S. Grains Council on behalf of its member organizations like the National Corn Growers Association (NCGA).

“While DDGS have effectively been shipped as a non-hazardous cargo for years now, the final classification by the IMO is an important success which will benefit corn farmers across the country,” said NCGA President Pam Johnson. “This status provides additional assurance that DDGS buyers and producers can access the lower freight rates assessed for non-hazardous cargo. U.S. farmers work diligently to ensure at every point in the process that we continue to provide the stable, consistent, quality product that our export markets expect.”

The classification provides savings in the form of lower freight costs which, in turn, increase the return to ethanol plants producing the high quality feed ingredient. Exports of DDGS from the United States have increased tremendously in recent years.

corn, Distillers Grains, Ethanol, Ethanol News, NCGA

Latest HSUS Poll Hacked

Talia Goes

Our latest ZimmPoll asked the question, “Should we sit down with HSUS in ‘common cause’?”

The results of this poll are skewed due to the hacking by HSUS. In the end, the poll read that eighty one percent voted Definitely, fifteen percent said Never, and four percent thought we Should in some cases. The attempt to affect our poll results has the HSUS/PETA goal of an end to animal agriculture. They are working to get the livestock industry to make concessions that drastically change production methods. When that happens it becomes a very slippery slope very quickly. It will only be a short matter of time before allowing chickens more room in cages becomes allowing all animals the right to life. Treating animals humanely is not the same as treating them like they are humans – but many activists see no difference.

The hacking we are referring to was having almost 400 poll responses to the Definitely answer come in during a few hours one night last week and none since. If you take them out, the answer Never would have been the highest result by far.

1.23.12graph

Our new ZimmPoll is now live and asks the question, “How many machines (tractors, etc.) does your farm own?” Some of the urban folk believe that if you own more than 1-2 pieces of machinery, that would classify you as a large farmer. We disagree with that. So let’s see how many pieces of equipment most farmers/ranchers own. Let us know!

ZimmPoll is sponsored by New Holland Agriculture.

Miscellaneous

Book Review – Demystifying Food From Farm to Fork

Joanna Schroeder

This week I read, “Demystifying Food from Farm to Fork,” by Maurice J. Hladik. Many of you may be familiar with Hladik, an agricultural expert who has spoken at events all around the world including Commodity Classic. The goal of the book is to take a look at food production from “farm to fork”.

demystifying-food-from-farm-to-forkAs with many concepts, farm to fork can be defined in many ways. Hladik defines it as, “Pertaining to the human food chain from agricultural production to consumption. In other words, from our readers farm to my table.”

As Hladik takes the reader through the varying stages in between the planting, growing and harvesting of food through manufacturing and eventually to the table, he explained the pros and cons, addressed any surrounding controversies and presented both sides of each argument. For this I was very impressed, as many writers take the view of “it’s my way or no way”.

Hladik also points out certain areas that he says are portrayed in the media as myths. One area he addressed was that of ethanol production and food prices. He writes, “There is a widespread conviction that the use of massive quantities of corn for the production of ethanol, and to a lesser extent soy beans for biodiesel, substantially contributes to hunger throughout the world….In reality, there is enough food in the world to go around, but getting it to all those who need it is a challenge.”

He continues by writing that the world does not need all the corn and other grains that are dedicated to biofuel production, and thus corn might as well be used for this purpose (he also rightly points out that a diet solely of corn does not constitute a balanced diet). In addition, he explains during his examination of “food versus fuel” that because of the increased need for corn for ethanol, along with the fact that growers are harvesting more bushels per acre than ever before, that should the unforeseen happen, the corn can be diverted to other areas – in essence, ethanol production is “money in the bank”.

This book is very well suited to those of us who are not very familiar with agriculture, and gives the reader a good, brief introduction into all the steps it takes to deliver our food to the table.

biofuels, book reviews, food and fuel

Bioenergy Bytes

Joanna Schroeder

Bioenergy Bytes

Iberdrola Renewables Completes 3 Wind Farms

Joanna Schroeder

IRI_Groton-3336Iberdrola Renewables has completed three new wind energy projects in the U.S. The wind farms were all commissioned in December 2012, representing a total investment of approximately $700 million, and most of the power has already been purchased via long-term contracts. The three projects include:

  • The Manzana Wind Power Project located in Kern County, California includes 126 GE 1.5MW wind turbines, with the capacity to produce 189 MW of wind energy each year. Lease payments to landowners are estimated to be more than $30 million over the life of the wind farm.
  • The Hoosac Wind Power Project is located in Monroe, Massachusetts and expands into Florida, Massachusetts. The wind farm consists of 19 GE 1.5 MW wind turbines with the ability to generate 28.5 MW annually. Lease payments to landowners are estimated to be $3 million over the life of the wind farm.
  • The Groton Wind Farm is situated along two ridge features in the town of Groton, New Hampshire. The wind farm consists of 24 Gamesa G87, 2.0 MW wind turbines and has the capacity to produce 48MW per year.

“These projects have begun delivering the environmental benefits of clean, renewable energy, but they also create significant economic impacts resulting from hiring numerous local workers and companies, and making long-term tax and lease payments to the local communities,” said Martín Mugíca, president and CEO of Iberdrola Renewables, LLC. “Each project represents the culmination of years of hard work, and we could not do it without the vision and support of our shareholders, customers and employees.”

Earlier in 2012, Iberdrola Renewables completed a 46-MW project in Pennsylvania, a 100-MW project in Iowa and a 304-MW project in Ohio.

Alternative energy, Electricity, Energy, Wind

Register Now for Iowa Renewable Fuels Summit

Cindy Zimmerman

irfa-lucy-nortonIf you want to spend a day next week with Iowa Gov. Terry Branstad, author and energy security expert Anne Korin, Growth Energy President Tom Buis and USDA Under Secretary Dallas Tonsager – today is the last day of pre-registration for the 7th Iowa Renewable Fuels Summit on January 30 in Altoona.

Registration is free and you can register on site, but Iowa Renewable Fuels Association Managing Director Lucy Norton says it’s good to know about how many people will be attending. “It’s open to the general public,” said Norton. “We encourage everyone to come out and hear more and learn more about renewable fuels.”

Much of the summit is focused on the importance of renewable fuels to Iowa, one of the leading states in the production of both ethanol and biodiesel. “The summit is the way that the renewable fuels industry gets the word out on renewable fuels and what it means to the state economy, for the federal economy,” Norton said, noting that both Gov. Branstad and Lt. Gov. Kim Reynolds will be at the event this year.

Norton says the Iowa RFA will be encouraging attendees to sign a letter to Chrysler. “We are asking Chrysler to follow suit with General Motors and Ford and approve their vehicles for the use of E15,” she said.

Find out more about what is in store at the 2013 Iowa Renewable Fuels Summit in this interview: Lucy Norton with Iowa RFA

Iowa Renewable Fuels Summit information and registration.

Audio, Biodiesel, Ethanol, Ethanol News, Iowa RFA

Coalition Urges New Farm Bill for Energy

Cindy Zimmerman

The Agriculture Energy Coalition (AgEC) today urged Congress to begin work on a new five-year Farm Bill with strong mandatory funding for energy programs.

The coalition notes that programs included in the farm bill Energy Title including the Rural Energy for America Program (REAP), Biomass Crop Assistance Program (BCAP), Biorefinery Assistance Program (BAP) and Biobased Markets Program (Biopreferred) have helped create jobs and economic growth in rural America, develop new agricultural markets, and improve farmers’ and ranchers’ energy self-sufficiency.

“Farm energy programs have paid a tremendous return for rural Americans, in terms of new jobs, investments in new energy efficiency and bioenergy technology, and new biobased products,” said Lloyd Ritter, Agriculture Energy Coalition co-director. “Economic growth and job opportunities in rural America are at risk without a renewal of funding for these effective programs.”

The American Taxpayer Relief Act of 2012 extended the 2008 Farm Bill without funding for energy title programs. Senate Majority Leader Harry Reid (D-NV) re-introduced the five-year farm bill passed by the Senate last year, calling it a “revolutionary piece of legislation.” The House failed to pass a farm bill last year.

Biodiesel, biofuels, biomass, Ethanol, Ethanol News, farm bill

Are You Ready for 2013 National Biodiesel Conference

Chuck Zimmerman

National Biodiesel Conference 2013For the first time ever the National Biodiesel Conference will be held in Las Vegas. The Domestic Fuel team will be there. Here’s where you can find registration information.

To get a preview of what’s to come listen in on an interview with Jessica Robinson, Director of Communications for the National Biodiesel Board. The conference theme is Momentum. Jessica says the theme fits on several levels. To start with, the National Biodiesel Board and biodiesel is celebrating its 20th anniversary. Then you have to look at the challenging year the industry had in 2012. Now NBB feels like it is poised for new growth in 2013. It is the first time the conference has been held in Las Vegas.

You can listen to my preview interview with Jessica here: Preview Interview with Jessica Robinson

Audio, Biodiesel, Biodiesel Conference, NBB