Domestic Fuel

For their efforts in promoting the use of ethanol in racing, the Indy Racing League and the Ethanol Promotion and Information Council received the 2007 Akerman Senterfitt Ethanol Innovator in Sports Award from the newly formed InterAmerican Ethanol Commission.

The IndyCar Series will begin using 100% fuel-grade ethanol in the 2007 racing season, which begins at Homestead-Miami Speedway on Saturday March 24.

During the commission’s kick-off event in Miami this week, Jorge Arrizurieta of Akerman Senterfitt and Florida Governor Jeb Bush presented the award to Mike Ringham, Vice President Marketing for the IndyCar Series and Tom Slunecka, Executive Director of EPIC.

Pictured left to right are Arrizurieta, Ringham, Slunecka and Governor Bush.

The Interamerican Ethanol Commission has been successfully launched.

Florida Governor Jeb Bush joined Roberto Rodrigues, President of the Superior Council of Agrobusiness and Brazil’s Former Minister of Agriculture, and Luis Alberto Moreno, President of the Inter-American Development Bank, to launch the new commission in Coral Gables on Monday.

During the event, Governor Bush also presented the Akerman Senterfitt Annual Ethanol Innovator Award to John Lewis of the IndyCar Series and Tom Slunecka of Ethanol Promotion and Information Council for their efforts in leading the industry by adopting ethanol as Indy’s fuel of choice.

Read more from the governor’s office.

Listen to an interview about the new commission and its mission with Tom Slunecka. Slunecka (4 min MP3)

Podcast: Play in new window | Download (1.9MB)

Despite increased demand for ethanol in the U.S., imports declined in both September and October of this year, according to preliminary data supplied by the federal Energy Information Administration.

October imports of the plant-derived gasoline additive stood at 1.505 million barrels, down from 2.194 million barrels in September, and down from the record-high 3.203 million barrels in August. The October level is also below June and July import levels.

Brazil provided 824,000 barrels, down from 1.318 million barrels in September. Most of the Brazilian barrels were bound for the East Coast of the remainder, 105,000 barrels went to Houston and 101,000 barrels went to the West Coast.

Other suppliers of ethanol for the U.S. include China, El Salvador, Costa Rica, Jamaica, Canada and Trinidad.

Read Dow Jones report.

The Chicago Board of Trade has successfully launched clearing services for two new over-the-counter Ethanol Calendar Swap contracts with the clearing of 60 contracts last week.

The new products, forward and previous month calendar swaps, are based on the price of CBOT Ethanol futures contracts and are the first exchange-cleared OTC products to be specifically tailored for use in the ethanol industry.

CBOT Senior Vice President of Business Development, Robert D. Ray said, “As the ethanol market continues to grow and mature, the CBOT, in close collaboration with our clients will continue to create new and innovative opportunities and services for the ethanol industry. The CBOT Ethanol Calendar Swap contracts are a perfect example of this collaborative process, providing a standard, transparent reference price to the OTC market, while reducing counterparty risk.”

Read more from the CBOT.

From the Journal Gazette (Fort Wayne, Indiana)

One company foresees nearly limitless demand for alternative fuel as gas prices continue to rise.

Their outlooks on the industry differ, but Indiana Bio-Energy LLC and Broin Cos. each plan to invest more than $100 million to build ethanol plants in Wells County. Only three miles would separate the two plants southwest of downtown Bluffton. With the competition so close, each company recognizes it will need to be as efficient as possible to succeed in an industry projected to be increasingly cutthroat.

Read full story.

From the Daily Advertiser (Lafayette, Louisiana)

“Ethanol could be the salvation of Louisiana agriculture,” says Commissioner of Agriculture and Forestry Bob Odom. He and others are hoping the future begins here.

The $56 million mill, built with state taxpayer money, is now owned by a partnership of area farmers and Andino Sugar Development, LLC, a company with headquarters in Colombia. They say they plan to put a plant to make ethanol from sugar syrup produced on the site by 2008.

Read the whole story.

Dyadic International, Inc. of Florida and Abengoa Bioenergy recently entered into a three-year research agreement to commercially develop a cost-effective enzyme production system for cellulosic ethanol.

Abengoa Bioenergy is considered to be the second largest ethanol producer in the world with production facilities located in Europe and the USA. Dyadic pioneered the stone-free method used to make “stone-washed” blue jeans with an enzyme isolated from a fungus which they are now redesigning to use in ethanol production.

Dyadic’s President and CEO Mark Emalfarb says “Abengoa Bioenergy is a visionary company and an important first partner for Dyadic for its biorefineries business. Additional partners will stand to benefit not only from access to Dyadic’s technologies specific to their area of interest but also from the core technology development program that is fundamental to efficient production of ethanol, other biofuels, polymers and other chemicals from biomass, thereby reducing our dependence on foreign oil.”

Read the release from Dyadic.

Listen to an interview with Dyadic officials about this technology from a previous post. Dyadic Interview (8:00 MP3)

Podcast: Play in new window | Download (3.7MB)

The launch of an international trade organization for ethanol will take place Monday in Coral Gables, Florida.

The Interamerican Ethanol Commission will be launched with a breakfast and press conference featuring Florida Governor Jeb Bush, Inter-American Development Bank president Luis Alberto Moreno and Roberto Rodrigues, a former Brazilian Minister of Agriculture who is now president of the Superior Council of Agribusiness, FIESP in Sao Paulo.

According to a Dow Jones report, the three will sign a protocol of intentions to build an ethanol research and development think tank “somewhere in the Americas.”

The new venture is being coordinated by Florida FTAA (Free Trade Area of the Americas), an organization of Florida governmental and corporate leaders with the goal of increasing cooperative trade between the U.S. and countries of Latin America.

During the launch event on Monday morning, the Indy Racing League and the Ethanol Promotion and Information Council will be recognized with a special award for their efforts on behalf of ethanol.

Finding alternative fuels is easier when you have a muse to guide you.

Map Muse is a mapping website with the goal of helping people find places related to their interests. Recently they added alternative fueling stations to their list of interests under the category of Going Green.

The site has maps for a variety of alternative fuels including E85, biodiesel and hydrogen with written descriptions, photos, and links to websites.

The website also allows for the public to add, enhance or update the information.

It does seem to take a little longer than normal to load, but you can check out the site at http://find.mapmuse.com/interest/category/Going_Green.

A Nebraska community college is getting nearly $2 million in federal funds to increase educational opportunities for the ethanol industry.

Sen. Chuck Hagel (R-NE) has announced that Northeast Community College in Norfolk will receive the grant from the U.S. Department of Labor.

“This is important news for Nebraska,” Hagel said. “The growing demand for alternative sources of energy requires educated professionals in Nebraska with a strong understanding of the technical, economic and agricultural needs of the rapidly expanding ethanol industry. This grant will put Northeast Community College at the forefront in training a well-educated work force for the ethanol industry.”

The Hawaiian Electric Company, also known as HECO, is proposing to run a 110 megawatt power plant entirely on renewable fuels such as ethanol and biodiesel.

According to the Honolulu Star Bulletin, the commitment to power the plant completely on biofuels was finalized last week and made public Monday.

Robbie Alm, HECO’s senior vice president for public affairs, said the state’s promotion of alternative energy played a role in the company agreeing to the 100 percent commitment.

The first ethanol processing plants in Hawaii are expected to come online by 2007, while three of the state’s largest landowners — Maui Land & Pineapple Co., Grove Farm Co. and Kamehameha Schools — in July announced the formation of a partnership to study the viability of a large-scale biofuels industry in the islands.

Read more.

Xethanol Corporation is planning to build a biomass-based pilot production facility in Florida, utilizing waste citrus peels as raw material for making ethanol.

According to a company release, the venture is located in Bartow, Florida, the heart of the state’s citrus industry. The venture is expected to establish a pilot plant to produce up to 50,000 gallons of ethanol this harvesting season. The pilot plant, which will increase to over 500,000 gallons per year (GPY), is co-located at a facility owned and operated by Peace River Citrus Products, Inc., a leading producer of orange and grapefruit juice and other citrus products.

Read more.

According to a report from Truth About Trade & Technology, soon-to-be Agriculture Committee chairmen Sen. Tom Harkin and Rep. Collin Peterson are in disagreement over the lifting of tariffs on imported ethanol.

After earlier reports indicated Harkin, an Iowa Democrat, would support a lifting of tariffs on ethanol imported to the U.S. from abroad, the Minnesota Democrat Peterson took a hard line against such a move Friday.

In addition to diluting a now vibrant corn-based ethanol marketplace in the U.S., Peterson said allowing tariff-free ethanol imports would hamper efforts underway to develop cellulosic ethanol production, support for which Peterson says he hopes to include in the 2007 farm bill.

Read more.

Tight world grain supplies and expanding corn based domestic ethanol production have created improved marketing options for U.S. feed grain producers. However, the U.S. feed grains industry should not abandon international market development programs and efforts to preserve its hard won world market share of feed grain and co-product exports based on the current trends, according to Ken Hobbie, president and CEO of the U.S. Grains Council.

Speaking to attendees of the Council’s First Ever Joint International Marketing Conference and 47th Annual Membership Meeting, Hobbie noted four areas on which the Council should focus efforts over the next three years – customer servicing and education; promotion of distiller’s dried grains with solubles (DDGS); building demand in countries and regions with whom the United States has free trade agreements while exploring opportunities in large markets with great potential like China and India; and issues related to market access and biotechnology acceptance.

Read more from the USGC and the Associated Press.

If only a quarter of proposed new Midwest ethanol plants come on-line, up to half of corn in Midwest states currently sent for export could be diverted to domestic ethanol production, according to a new report by the Institute for Agriculture and Trade Policy (IATP).

“Staying Home: How Ethanol Will Change U.S. Corn Exports,” by IATP’s Mark Muller and Heather Schoonover, looks at the stunning growth planned for ethanol plants in the Midwest and their potential impact on corn exports. The paper includes data on how corn exports for individual Midwest states could be impacted by new ethanol plants, including, Iowa, Nebraska, Minnesota, Illinois, Indiana, Wisconsin, Missouri, North Dakota, and South Dakota.

The reports recommends that in the next Farm Bill “policymakers should focus on building and diversifying opportunities for renewable fuels and energies; promoting farm practices and cropping systems that build soil health and improve water quality; and ensuring that farmers and rural communities benefit from these new opportunities.”

Read press release summary or check out the IATP site for the full report and video interview.