Domestic Fuel

Ethanol will be on the table when Brazilian President Luiz Inacio Lula da Silva meets with President Bush in Washington this weekend.

The meeting will be a follow-up to Bush’s visit to Brazil earlier this month and, according to an Associated Press report, Silva “hopes to advance a biofuels alliance and help break a deadlock in world trade talks.”

Silva on Friday reiterated Brazil’s position that the alternative fuel will not gain traction worldwide unless the United States drops a 53-cent per gallon tariff on Brazilian ethanol.

The alliance’s “goal is to ensure conditions for ethanol, and later biodiesel, to become globally marketed commodities,” Silva said in a column published in The Washington Post. “This will only be achieved if trade in biofuels is not hindered by protectionist policies.”

US BioEnergy has announced net income of $20.4 million, or $0.41 per share, for the year ended December 31, 2006 and net income of $21.0 million, or $0.36 per share, for the fourth quarter.

“This has been a year of significant progress and achievement for our company,” said Gordon Ommen, US BioEnergy president and CEO. “In addition to a successful initial public offering in December, we grew our ethanol production capacity to 250 million gallons by year end. We achieved this rapid growth through well planned acquisitions, greenfield construction and facility expansion. By the end of 2008, we expect to have seven plants operational with ethanol production capacity of approximately 600 million gallons per year.”

The company currently owns and operates three ethanol plants, which have combined production capacity of 250 million gallons per year, has five more under construction and another three sites under evaluation.

As expected, the USDA Prospective Plantings report out Friday morning showed that farmers expect to make a dramatic shift to corn acreage, and away from cotton and soybeans. The main reason – increased demand and higher prices of crops used for bio-fuels.

According to USDA’s National Agricultural Statistics Service, corn growers intend to plant 90.5 million acres of corn for all purposes in 2007, up 15 percent from 2006 and 11 percent higher than 2005. If realized this would be the highest acreage since 1944. Illinois farmers intend to plant a record high 12.9 million acres of corn this spring, up 1.60 million acres from last year. North Dakota and Minnesota growers also expect to plant record high corn acres, up 910,000 and 600,000 acres, respectively.

Soybean producers intend to plant 67.1 million acres in 2007, down 11 percent from last year. However, area planted to soybeans is expected to increase in the Southeast, with Georgia expecting the largest increase from last year at 95,000 acres.

All cotton plantings for 2007 are expected to total 12.1 million acres, 20 percent below last year. Growers intend to decrease planted area in all States with the largest acreage declines in Arkansas, Georgia, Louisiana, North Carolina, Mississippi, and Texas.

Minnkota Power Cooperative, Inc., and Otter Tail Power Company have announced they will develop the Langdon Wind Project… which will become the largest wind farm in North Dakota.

According to a company press release, the 25-year agreements say Minnkota will purchase 99 megawatts of wind-generated power and Otter Tail Power Company will buy 19.5 MW of wind power. Also, Otter Tail will own an additional 40.5 MW at the project site:

“We’re pleased to have this renewable energy purchase agreement in place,” said David Loer, Minnkota President and CEO. “In response to customers’ interest, Minnkota is seeking to add more economical renewable generation to our energy resources. We’re proud to be part of this FPL Energy project, which will be the single largest wind farm in the state of North Dakota.”

The Langdon Wind Project is expected to put out 159 MW at its peak. It will be operated by FPL Energy… which already runs four other wind projects in the state.

May soyoil futures on the Chicago Board of Trade rose to a high of 33 cents per pound Thursday.. the highest for a nearby contract in nearly three years.

Those nearby soyoil futures have appreciated more than 10% over the last three weeks. According to this AP story in the Houston Chronicle, the rise has been fueled by the jump in price for crude oil:

The resurrected crude oil market has reignited index fund buying in soyoil, said John Kleist, senior analyst with Top Third Ag Marketing in Chicago. Soyoil’s link to biodiesel is boosting it much like corn has been boosted by ethanol prices, he added.

Tensions in the Middle East, particularly involving Iran, have fueled crude oil rallies recently and soyoil’s recent gains have coincided with those price moves, analysts said.

The nation’s largest dry mill ethanol producer has changed its name from Broin to Poet ™.

According to a company release, “the change was made by the company in order to strengthen its communications, unify its several companies under one brand and better reflect its current position.”

Poet President and CEO Jeff Broin said they wanted a name that would reflect the unique nature of their organization. “We wanted a name that would represent, rather than describe, who we are and what we do,” Broin said. “As a poet takes everyday words and turns them into something valuable and beautiful; we use creativity that comes from common sense to leave things better than we found them.”

In announcing the change, he said, “This company is not about one person. This company is about an unbelievable team of dedicated professionals who work together to change the world we live in. Although I plan to be part of this organization for a long time, I don’t feel that my last name is the best name to take this company through the next generation.”

The Poet name will now be on all formally-Broin companies, including:
Broin Companies, which will now be simply Poet; Broin Management, which will be Poet Plant Management; Broin & Associates, now Poet Design & Construction; Ethanol Products, now Poet Ethanol Products; Dakota Gold Marketing, which will now be called Poet Nutrition and Broin Enterprises, which will be Poet Research Center.

Ford Motor Company’s new 2008 Crown Victoria Police Interceptor will be offered as a flexible fuel vehicle allowing it to operate on E85 ethanol or gasoline.

According to a news release, Ford is the largest producer and seller of police vehicles with more than 80 percent of the market. As police and government agencies move toward becoming more environmentally conscious and seek alternative fuel vehicles for their fleets, Ford is in the position to fill this need for its police customers.

“The ability to offer an E85 capable vehicle to our police customers is significant,” said Gerald Koss, Ford’s fleet marketing manager. “Many municipalities and states across the country are encouraging, if not mandating, that their police and other government fleet vehicles begin using alternative sources of fuel. We can now help our police fleet customers achieve this goal.”

The historic communities of Lead and Deadwood, South Dakota will be the latest to experience a promising new age in environmentally friendly school transportation. All buses in the Lead-Deadwood School District will be powered by O2Diesel(TM), a fuel blend of ethanol-diesel.

According to an O2 Diesel press release, “The essence of why we are using O2Diesel is we believe it is a much cleaner fuel, and the health and safety benefits for our children is our number one priority,” said Dr. Dan Leikvold, Superintendent, Lead-Deadwood School District. “In addition, the Lead-Deadwood School District wants to do its part to investigate and utilize alternative fuels.”

The introduction of this cost-effective, revolutionary fuel blend in school buses is part of the CityHome Program(TM), a national air quality initiative that enables municipal transit systems and school bus operators to make the switch to O2Diesel at no additional cost. The costs of conversion are shared by the corporate sponsors.

In partnership with the National Arbor Day Foundation, a tree will be planted in the Black Hills National Forest for each child who rides these school buses. Additional sponsors include KL Process Design Group and the Ethanol Promotion and Information Council.

The U.S. Department of Energy has announced just over $23 million in federal funding for five projects focused on developing highly efficient fermentative organisms to convert biomass material to ethanol.

According to a DOE press release, Assistant Secretary for Energy Efficiency and Renewable Energy Alexander Karsner said the projects will study ways to produce cellulosic ethanol cost-effectively. “Ultimately, success in producing cost-competitive cellulosic ethanol could be a key to breaking our nation’s addiction to oil. By relying on American farmers and ingenuity for fuel, we will enhance our nation’s energy and economic security.”

The companies to receive funding for fermentation projects are:

* Cargill Incorporated – $4.4 million
* Celunol Corporation – $5.3 million
* E.I. Dupont de Nemours & Company – $3.7 million
* Mascoma Corporation – $4.9 million
* Purdue University – $5.0 million

The IndyCar Series made history in Homestead under the lights on March 24, filling up and feeling good on 100 percent fuel grade ethanol for the first time.

This edition of “Fill up, Feel Good” includes comments from Renewable Fuels Association president Bob Dinneen, Indiana Senator Dick Lugar, IndyCar drivers Jeff Simmons, Scott Sharp and Dan Wheldon, RLR owner Bobby Rahal, ethanol industry members Dan Schwartzkopf, Dave Vander Griend, Troy Prescott and Jack Alderman and the IRL’s Tony George.

The “Fill up, Feel Good” podcast is available to download by subscription (see our sidebar link) or you can listen to it by clicking here. (6:45 MP3 File)

The Fill Up, Feel Good theme music is “Tribute to Joe Satriani” by Alan Renkl, thanks to the Podsafe Music Network.

“Fill up, Feel Good” is sponsored by the Ethanol Promotion and Information Council.