Domestic Fuel

Alcohol will be powering the 2007 Rahal-Letterman Racing team in more ways than one.

The number 17 Team Ethanol car will be driven once again by Jeff Simmons and sponsored, of course, by the ethanol industry. The second car in the RLR stable will be Number 8, piloted by veteran IndyCar Series driver Scott Sharp and sponsored by Patrón Spirits Company premium brand tequila.

During a press conference Thursday, Rahal-Letterman co-owner Bobby Rahal praised Jeff Simmons’ efforts this year, coming on board after the tragic death of driver Paul Dana before the first race of the season. “It was some difficult shoes to fill and he came in and with each race gained more and more confidence,” Rahal said. “And with Jeff we are fortunate to have the relationship with the ethanol industry.”

The IndyCar Series is making the switch to 100 percent ethanol in 2007 and Rahal said they have been very pleased with the results of the fuel. “Any myths that were associated with lack of performance (regarding ethanol) have been shattered.”

Driver Jeff Simmons is looking forward to his first full year with the IndyCar Series and Rahal-Letterman and said his goals for 2007 are simple, “To win races and be a good spokesman for ethanol.”

Tom Slunecka, executive director of the Ethanol Promotion and Information Council, said the ethanol industry’s partnership with Rahal-Letterman and the Indy Racing League has taken ethanol to new heights. “The ‘e’ on the side of that car is starting to represent more than just a brand for a commodity product. It really is a movement that has been strengthening, letting consumers know the performance in that Indy Car can be purchased locally at their gas station.”

Read more from EPIC.

Shares of Archer Daniels Midland Co. and VeraSun Energy Corp., the two biggest U.S. ethanol producers, soared on speculation that Democratic control of the U.S. House of Representatives will boost demand.

“A Democrat-led House is likely to amount to a political net plus for the ethanol industry,” Stanford Group Co. analyst Mark McMinimy wrote today in a report to clients. “The political climate for ethanol in the Congress will shift from an environment that was already favorable to one that is promising for ethanol-friendly legislation over the coming two years.”

Read more from Bloomberg.

The Chicago Tribune reports on comments from Archer Daniels Midland executives that they foresee “rapid growth in the market for gasoline blended with 10, 15 or even 20 percent concentrations of ethanol, but slower acceptance of so-called “E-85.” Read full story.

Archer Daniels Midland Company made presentations to financial analysts in Chicago Wednesday outlining plans to be the global leader in ethanol and biodiesel production, while expanding its top position in the agricultural processing value chain.

“ADM is uniquely positioned at the intersection of the world’s increasing demands for both food and fuel,” said Patricia Woertz, ADM CEO and President. “As one of the largest agricultural processors in the world and the largest biofuels producer in the world, ADM is in a category of one to capitalize on the exceptional opportunity ahead.”

Read more from ADM press release,
and Reuters report one and two.

A 40-year-old discovery is showing promise as a chemical pre-treatment that breaks down plant fiber. That could release the simple sugars in corn stalks or switchgrass so they can be fermented into ethanol. And that could add value to Iowa’s crops or the fibrous co-products of ethanol production. John Verkade, left, a University Professor of chemistry at Iowa State, and Reed Oshel, a graduate student in biorenewable resources and technology, are studying the compound which they are not identifying as they explore patent options.

Read more here from ISU.

Underwriters Laboratories reports progress toward developing safety requirements for E85 ethanol dispensers after a two-day forum at headquarters in Chicago last week. Concern over the safety of pumps for 85 percent ethanol was brought into question after a notice Oct. 23 that UL had suspended authorization of E85 dispenser components and that it would be updating its requirements.

The technical forum, co-sponsored by the U.S. Department of Energy, featured 32 national experts discussing E85 fuel-dispensing system materials and the development of safety standards for E85 dispensers. Participants included automobile and petroleum company representatives, ethanol producers, dispenser and component manufacturers, industry associations, government agencies and researchers.

UL, North America’s leading safety testing and certification organization, said additional technical data is necessary from forum participants to assist in the standards development process. Forum participants agreed to provide UL with requested technical data no later than Nov. 15.

Read more.

AgriNews of Minnesota reports that Ford is “returning to its origins with its interest in ethanol.”

In 1907, ethanol was the primary fuel for Ford vehicles because it was the most widely available fuel, said Ron Westby, director of public policy for Ford Motor Company, speaking at last week’s Agri-Growth Council annual meeting.

Ford switched to gasoline after the Volstad Act outlawed alcohol in 1918, Westby said, because then gasoline was more readily available.

Read the story here.

Scripps News has a feature on ethanol fever in the Heartland, focusing on Heron Lake, Minn.

Ethanol mania is sweeping through Heron Lake and many towns like it across the Corn Belt. Investors are spending billions in rural communities, sparking a wild rush to secure land, an industry movement to alter environmental standards and a rash of fierce bidding by communities desperate for their own plant.

Two decades after farmers began mashing their corn into ethanol, the clear, odorless liquid is seen by many as the best chance for America to lessen its dependence on foreign oil.

Read the story here.

Ten truckers will be driving a million miles over the next two years to study and promote the benefits of soy biodiesel.

The Iowa Soybean Association, Decker Trucking Lines, Inc., the National Biodiesel Board, Caterpillar Inc., Iowa Central Community College, Renewable Energy Group and the USDA have partnered to support this study.

The study will use a biodiesel mix of 20% soy biodiesel and 80% petroleum diesel. Trucks using both biodiesel and traditional diesel will run identical routes and carry the same weight, and researchers will measure fuel mileage, engine wear, and other data.

Read more here.

SRI Consulting recently released its new Biodiesel Report that provides comprehensive and current information on the global biodiesel industry and trends.

According to an SRI news release:

Author and Vice President at SRIC Ralf Gubler said, “Over the last year, the biodiesel industry has changed dramatically. For example, the average biodiesel plant in Western Europe produced about 40 thousand metric tons last year. In 2006, the average capacity is expected to be 100 thousand metric tons. Also, other regions are planning to have the same capacity within two years.”

The report provides in depth coverage on supply and demand, feedstock issues, production technologies, and regulatory, environmental and agricultural issues for over 60 individual countries. In over 500 pages and 280 tables, the report details 15 years of historical and five years of projected supply/demand figures on a country-by-country level.

For additional information about the Biodiesel Report, see www.sriconsulting.com.

The third annual Canadian Renewable Fuels Summit is coming up December 10 – 12 in Banff Springs, Alberta, Canada.

The summit is hosted by the Canadian Renewable Fuels Association and features a number of important speakers including:

The Hon. Lorne Calvert,
Premier of Saskatchewan

Lorne Hepworth, President,
CropLife Canada

Barb Isman, President,
Canola Council of Canada

Lionel LaBelle,
Saskatchewan Ethanol Development Council

Gord Surgeoner, President,
Ontario Agri Food Technologies

Dave Vander Griend, President and CEO,
ICM Inc.

Dave Paterson, V.P Corporate and Environmental Affairs,
General Motors Canada

Register for the event here.

The Chicago Board of Trade has announced plans for two new over-the-counter (OTC) Ethanol Calendar Swap contracts.

The new products, which will include contracts for both forward and previous month calendar swaps, will be based on the price of CBOT Ethanol futures contracts. Scheduled to be introduced on December 4, 2006, CBOT Ethanol Swap contracts are the first exchange-cleared OTC products to be specifically tailored for use in the ethanol industry.

Read more from the CBOT.

Two Boulder, Colorado residents are on a mission to promote E-85 by bus.

Self-described dedicated environmentalists Jason and Tracey Keeley have “organized Buy the Bus to fund an eight-month tour of key locations in the United States, during which they will spread the word about E85.”

Tracey and Jason’s combined passion for the great outdoors has culminated in Buy the Bus, an advertising campaign designed to help spread the word about E85. Starting in April of 2007, Jason and Tracey will tour the United States for eight months, educating the American people about ethanol fuel. The Volkswagon Bus they will use will also be converted so that it can run on E85, which Jason and Tracey will use religiously.

Buy the Bus allows businesses to buy advertisement space on the Volkswagen Bus in which they will make the trip. The bus will see about 8,000 miles of highway, guaranteeing broad exposure for the advertisements it carries with it. Additionally, the ads will remain on the Buy the Bus website, as well as the real bus, for three years. Advertising space costs $1 per pixel, sold in blocks of 100, which translates to 3” by 3” blocks on the real bus.

Read more here and at BuytheBus.com.

A Georgia Farm Bureau committee adopted a proposal to cut the sales tax on the sale and production of ethanol and biodiesel (see previous post) to present to the membership in its December meeting.

Seventeen states have reduction or elimination of sales and use motor fuel taxes for ethanol and/or biodiesel, according to information from the U.S. Department of Energy’s Alternative Fuels Data Center. Many states offer packages of tax credits, grants, loans, and rebates to producers and users.

See Georgia Ag Department press release for more.

The job of lieutenant governor is rarely noticed, but when the running mate of the challenger in the Minnesota governor’s race appeared to show ignorance of ethanol this week, the current holder of the position did get some attention.

And no one can say that Lt. Gov. Carol Molnau is ignorant when it comes to ethanol. As a corn farmer from near New Ulm, part of Molnau’s income depends on the renewable fuel, according to this story from the Austin Daily Herald.

Molnau, who farms with her husband east of New Ulm, said during a campaign visit to Austin Friday that they finished harvesting their corn last week, and that some of their yield will be going into ethanol.

“The best part of E-85 is there’s a lot of demand for the corn,” Molnau said, which drives prices paid to farmers up. “This morning my husband told me the delivery price is $2.81, and that’s what E-85 has done for rural Minnesota.”

Here’s another story on Molnau from the Albert Lea Tribune.