Domestic Fuel

This may be a little different but, hey, it’s an alternative to what we think of as traditional fuel. How about using “waste wood” as a biomass fuel source?

Agriculture Under Secretary for Rural Development Thomas Dorr today announced a $16 million loan guarantee to help finance construction of an electrical generating plant in rural Arizona that will use wildfire-damaged timber along with waste wood and paper fiber from a nearby paper mill as a fuel source. The announcement marks the first time that USDA has made a loan guarantee through its Rural Development Renewable Energy and Energy Efficiency program.

Rural Development funds will guarantee a $16 million loan to Snowflake White Mountain Power, LLC of Snowflake, Arizona. The company will build a 20-megawatt biomass electrical generating plant 17 miles from the community. The $23 million generating plant will use wildfire-damaged timber from the 450,000 acre Rodeo-Chediski fire, along with waste from the nearby Abitibi Paper Mill as a fuel source. The timber that was damaged by wildfire will be sold to the company under contracts with the U.S. Forest Service as part of its Healthy Forest Initiative.

More and more is being invested into renewable energy alternatives like ethanol. In fact, it’s almost hard to keep up with all of it. Here’s another announcement that a significant investment is being made by some savvy investors.

New Energy Capital Corp. has announced its investment in a 55 million gallon per year ethanol production facility currently under construction in Albion, Michigan. The plant, adjacent to a grain terminal owned by The Andersons, Inc., will produce ethanol from corn grown by local farmers and will also produce distillers grains, a high quality feed supplement ideal for the region’s growing dairy industry. Ethanol from the plant will be blended with gasoline for use in the transportation sector. The use of ethanol as a replacement for gasoline cuts U.S. oil dependence, stimulates the nation’s farm economy, and reduces greenhouse gas emissions.

The facility, which will be managed by The Andersons, is expected to be completed by September 2006, and will involve an aggregate investment of approximately $86 million. The designer and general contractor will be ICM, Inc. of Colwich, KS, an industry leader in ethanol technology and plant construction. The Andersons and New Energy Capital are joined by three other equity investors, and CoBank of Omaha, Nebraska will lead a consortium of farm credit banks to provide construction and term financing. Plant construction will involve approximately 250 new jobs and operations will require approximately 30 full time equivalent staff.

I wish these folks would do this in Missouri! The Indy Racing League teamed up with 7-11 stores in California today to pump some gas (with ethanol). The price was right at $2.20/gallon. It’s hard to believe anyone would think that a bargain but times have certainly changed. So here’s the details of the promotion they put together today:

IndyCar Celebrities –will be on hand to pump gas, answer questions, sign autographs and get their picture taken with lucky drivers who stop by.

Pit Crew – A team of ethanol and IRL professionals will create a genuine pit-stop experience with the full treatment…window washing, pumping fuel and engaging the customer in ethanol-enriched fuel and the IRL race in Fontana.

Like I said, too bad they couldn’t do this everywhere. Let’s roll across the country with this tour! Actually these guys will be racing this weekend at the Toyota Indy 400.

This is a very interesting tidbit from the Illinois Corn Growers:

If you are keeping a scorecard, the U.S. ethanol industry now has 91 plants operation in more than 20 states. Together, they have a production capacity of about 4.1 billion gallons. There is nearly 1.2 billion or another 21 plants in additional capacity under construction. Now after taking the time to read this I hope you didn’t try to memorize the numbers because they will change again before you put your combine in the shed.

As a show of how much the current administration is putting their money where their mouth is when it comes to encouraging the development of renewable fuel sources, USDA just announced grants to 11 projects totalling over $12 million dollars.

Agriculture Secretary Mike Johanns announced that 11 biomass research, development and demonstration projects were selected to receive $12.6 million for the Biomass Research and Development Initiative, a joint effort of USDA and the Department of Energy (DOE). The total value of the projects is nearly $19 million, including cost sharing of the private-sector partners.

The Biomass Research and Development Act of 2000 and the 2002 Farm Bill set the framework for interagency cooperation and joint solicitations.

Here’ s a list of the 2005 projects:

University of Idaho (Moscow, Idaho) – Increasing the Potential for the Utilization of Cellulose from Straw for Biofuel and Bioproduct Production – $693,285

The Samuel Roberts Noble Foundation, Inc. (Ardmore, Okla.) – Development of Low-Lignin Switchgrass for Improved Ethanol Production – $670,166

The Tampa Bay Area Ethanol Consortium (Florida) – Implementation of a Scale-Up Pilot Plant Demonstration Facility toward the Commercialization of Florida Biomass Feedstocks for Ethanol Production – $1,920,000

University of Montana, College of Technology (Missoula, Mont.) – Biopower Demonstration and Educational Outreach – $990,500

North Carolina State University, Department of Chemical and Biomolecular Engineering (Raleigh, N.C.) – Conversion of BioDiesel Derived Glycerol to Glycidol, Glycerol Carbonate and C-3 Oxygenates by Catalytic and Biocatalytic Pathways – $1,606, 265

Iowa State University (Ames, Iowa) – Environmental Enhancement through Corn Stover Utilization – $1,853,996

Oak Ridge National Laboratory (Oak Ridge, Tenn.) – Carbon Fiber from Biomass Lignins – $1,083,770

Clarkson University – (Potsdam, N.Y.) – Environmental and Economic Performance of an Integrated, Digester-Cogeneration-Value-Added Process – $805,938

University of Minnesota, Morris (Morris, Minn.) – Biomass Gasification: A Comprehensive Demonstration of a Community-Scale Biomass Energy System – $1,896,493

University of Florida (Gainesville, Fla.) – Bioenergy: Optimum Incentives and Sustainability of Non-Industrial Private Forests in the U.S. South – $656,525

Environmental Resources Trust (Washington, D.C.) – Incentives for Biomass Commercialization: Pioneering Markets for Biomass Using Renewable Energy Certificates, Emission Reduction Credits and Incentive Programs for Ammonia, PM10 and PM2.5 Reductions – $449,993

Now here’s a company that’s really into the domestic fuel business. Why not combine biodiesel and ethanol? No good reason obviously.

NewGen Technologies, Inc. announced today that in addition to the acquisition of three terminals for distribution of ReFuel America biofuels in the Southeast United States, the company will also launch its own ReFuel America branded and proprietary E-Diesel early next year.

NewGen’s E-Diesel is a blend of standard diesel fuel and ethanol that utilizes proprietary NewGen technology to maintain blend stability and increase certain fuel properties. City buses, stationary equipment and other vehicles currently running on standard diesel fuel account for a large portion of the world’s air pollution. The optimum blend of ethanol, diesel and other NewGen innovations can replace straight diesel fuel in these engines. Some American cities have already converted their bus fleets to E-Diesel on a test basis.

Broin Companies is a celebrating the groundbreaking of the 8th ethanol plant they’ve designed and built in South Dakota tomorrow. This one is for Prairie Ethanol, LLC. The groundbreaking will be conducted after a program in Lechter, SD that includes speeches by U.S. Senators Tim Johnson and John Thune. Then the official ceremony will take place at the plant’s construction site near Loomis, SD.

Prairie Ethanol will be the eighth ethanol plant the Broin Companies of Sioux Falls, SD have built in the state of South Dakota and the 24th plant built since its inception. Annually, Prairie Ethanol will produce 60 million gallons of ethanol by consuming over 21 million bushels of corn from the regional area. The plant will employ approximately 40 people, most from the local area. Prairie Ethanol will also help improve the local corn basis while providing an environmentally friendly fuel and premium Dakota Gold Enhanced Nutrition Distillers Products™ for regional, national and international markets.

There’s an interesting story that summarizes how many state governors are parking their sports utility vehicles in favor of new hybrid vehicles that run on alternative fuels. You can find it in the Belleville NewsDemocrat. I think it’s interesting to see public officials actually practicing what they preach for a change. Of course, it makes you wonder if they sneak out at night and drive around in their big SUV’s!

It looks like even Hawaii is joining in the momentum to look at renewable fuel alternatives. An article in the Pacific Business News says that “The commission also explored renewable energy as a way to combat high gas and electricity prices. Proposals include expanding Hawaii’s goal of using 20 percent renewable energy by 2020 to include transportation fuels and increasing support for solar energy.”

You can see Governor Lingle’s news release on her website. You can learn more about the Economic Momenum Commission on their website.

The Renewable Fuels Association is one of the main groups advocating the use of ethanol and other fuels. They just announced a new communications director on their staff. He would be a great source of information about the industry.

The Renewable Fuels Association (RFA) is pleased to announce that Matt Hartwig has been hired as Communications Director. Matt will be taking over for Monte Shaw, who has served the RFA in that role for the past five and a half years.

RFA President Bob Dinneen stated: “The U.S. ethanol industry is growing at an unprecedented rate and the issues the industry faces every day demand a broad understanding of a number of complex topics. But with his agriculture and consumer advocacy background, Matt will be able to hit the ground running. As an Iowan, Matt understands first hand the impact ethanol can have on rural economies, and his experience with consumers will be helpful in educating the public about the benefits of ethanol as gasoline prices reach record levels across the country. We are delighted to have Matt on the RFA team.”

The Governator is pushing for the development of alternative fuels in his state. Green Star Products has this release on their website. Visit the website for the full release.

Last Thursday September 29, 2005, Governor Schwarzenegger of California signed into law a proposal authored by State Senator Roy Ashburn (R-Bakersfield) that would allow public agencies and utilities to use vehicles that run off of biodiesel and biodiesel blends.

American Biofuels (ABF), a biodiesel producing company which is 35% owned by Green Star Products, Inc. (OTC: GSPI), has been working with the California Energy Commission for some time now to establish production and usage criteria for the State of California.

We’ve been pointing you to news about how different states are considering or expanding on legislation to mandate the use of ethanol in gasoline. The National Corn Growers Association put out a story today on their “News of the Day” that summarizes some of these efforts.

The United States Department of Agriculture, Rural Development just announced a number of grants, some of which will be used for the development and promotion of alternative fuels.

Agriculture Secretary Michael Johanns today announced the selection of 171 applications from 42 states to receive over $14.6 million in USDA Rural Development grant assistance under the Value Added Producer Grant program.

Some of the energy-related grants include:

The Wisconsin Soybean Marketing Board will receive a grant to determine the viability of marketing bio-diesel fuel made by a producer-owned soybean processing plant. Businesses and producers in California, Delaware, Illinois, Indiana, Iowa, Kansas, Mississippi, Missouri, Nebraska, Ohio, Oregon, Washington and Wisconsin will receive grants to assess the feasibility of marketing ethanol and bio-diesel, or other types of renewable energy. A total of 32 energy related grants were awarded this year. A complete list of the grants is available on the USDA web site at: http://www.rurdev.usda.gov.

The Value-Added Producer Grant program was authorized by the Agriculture Risk Protection Act of 2000 (P.L. 106-224) and the 2002 Farm Bill (P.L. 107-171).

According to a release from the Sacramento Regional Technology Alliance the west coast may become a serious green technology “powerhouse.”

The Sacramento region has the potential to explode into a powerhouse for clean energy research and technology in much the same way that Santa Clara became Silicon Valley.

That’s the conclusion of a report just released by the Clean Energy Business Incubator Project of the McClellan Technology Incubator and the Sacramento Regional Technology Alliance (SARTA). The report, titled Clean Energy in the Capitol Corridor: Making the Region a Green Powerhouse, details the many benefits that exist for the area when it comes to clean energy technology.

The report defines a number of ways that the development of green technology companies would benefit the region including:

The addition of more than 10,000 high-paying jobs in thriving businesses and research centers
New opportunities for Central Valley farmers to grow high-value crops for fuel, chemicals and medicines
New export trade possibilities, tapping into the $100 billion per year global market for clean energy
A substantial increase in energy efficiency and a huge reduction in dependence on fossil fuels

In order to spart interest in companies so they’ll invest in the area the report is to spark venture capital interest in the area by proposing a $50,000 competition among the region’s high-technology start-up companies to help synergize and leverage the vast capabilities of the area’s clean energy intelligence and research expertise.

The contest, which proposes to offer a $25,000 grand prize, $15,000 second prize and $10,000 people’s choice award will be designed to challenge the Capital Region’s many high-tech companies and entrepreneurs to create business plans designed to bring clean energy technologies to the market.

This is an interesting story in the INQ7.net about a former Miss Universe who is now championing alternative fuels as what they describe “Ms Fuels For Life.” The story was actually published in the Phillipine Daily Inquirer. Margie Moran was Miss Universe in 1973 and is working with her government’s Clean City program and the U. S. Dept. of Energy and the United States Agency for International Development on this project. In the Phillipines they make biodiesel out of coconuts and ethanol out of sugar.