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USB: Soy-Biodiesel Unfairly Blamed

Soybean growers say their crop is being unfairly maligned in the Food-versus-Fuel debate. Members of the United Soybean Board gathered in Indianapolis, Indiana this week, and part of what they are discussing is how to counter arguments supporting that viewpoint.

Gary Truitt’s Hoosier Ag Today has more details from the meeting:

During the discussion, there was considerable debate on how the soybean industry should respond to the Food vs. Fuel issue. Karen Fear from Montpelier, IN, said soy-biodiesel is being unfairly criticized, “We need to get the word out so that people back this more.” Jack Reed from Washington County said the soybean is a perfect example of how farmers can produce both food and fuel, “When you take the oil out of the soybean you will have 80% of the soybean left which is meal.” From that meal, you can make livestock feed and a variety of human food needs. Reed said it is not an either or situation.

Indiana USB representative Jim Schriver said, unlike ethanol, very little of soybean production is going into fuel production, “Only about 2% of our soybean production goes into fuel production.” He said the real issue is the price of oil. Not only is the high price of oil causing energy prices to rise, but it has caused a dramatic increase in soybean oil demand.

The story goes on to point out how this country is trying to find an alternative to outrageously high-priced petroleum… and soybean oil is a viable alternative. In addition, farmers are large users of energy, so why shouldn’t they be producing some of what they are using. Amen to that!

Mandatory Biodiesel Survey Proposed

The government wants to know more about the biodiesel production operations in this country.

This story from Biodiesel Magazine says the U.S. Energy Information Administration wants a mandatory biodiesel survey. The information would be gathered in compliance with the Energy Policy Act of 2005, which directed collection of information on biofuels:

The survey would collect data on biodiesel and coproduct production, sales and tax credits, and feedstocks. “The survey is given to all registered biodiesel producers,” said Marie LaRiviere, Energy Information Administration spokeswoman.

The survey would be the first of its kind, although similar information has been gathered by the EIA in the past. “EIA has, in the past, estimated some of the data we will be collecting based on, among other things, program reports collected by the [USDA] Commodity Credit Corporation,” LaRiviere said, who added that the CCC program ended in 2005. “This survey will provide a more complete statistical picture of the biodiesel industry and provide it on a regular monthly basis.”

In addiition, the agency is also looking to collect historical data for a one-time supplement.

The Cost of Biomass

Sarah BrechbillSarah Brechbill, Purdue University, got to put her masters degree project on the stage today here at the Farm Foundation’s Transition To A Bio Economy conference. She looked at the cost to get biomass to a plant and specifically looked at switchgrass and corn stover.

She says that there’s really no one answer to what’s best for everyone. However, she did find that corn stover was generally cheaper. One reason is that it’s already being grown.

You can listen to my interview with Sarah here: ff-bio-08-brechbill.mp3

You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

Cellulosic Ethanol Co-Products

Danielle Julie CarrierWe hear a lot about co-products with ethanol production like the DDGS but what about in cellulosic ethanol production? Well, Danielle Julie Carrier, Arkansas State University is doing work on that subject.

I was very interested to hear that there are some possibilities. She’s working with switchgrass and they’ve found that if you wash the feedstock prior to the pre-treatment for ethanol production that you get a water mix with flavonoids which help reduce bad cholesterol. Co-products like this have potential and may help make the production of cellulosic ethanol more attractive.

You can listen to my interview with Julie here: ff-bio-08-carrier.mp3

You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

Making Ethanol From Dry Peas

Abhishek GoelDuring our last session of the day here at the Farm Foundation, Transition To A Bio Economy Conference, our speakers talked about some feedstock and co-product issues of ethanol production. First up was Abhishek Goel, North Dakota State University. He did work on using dry peas to supplement corn in an ethanol plant. The idea was to reduce supply risk and increase profitability.

He says that in North Dakota corn supply is variable and since the state is the biggest producer of dry peas it seemed like a natural place to start. The work was done in 2007 and although prices have certainly changed he believes there are opportunities to supplement corn with other feedstock options.

You can listen to my interview with him here: ff-bio-08-goel.mp3

You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

Answering Ethanol Plant Location Questions

David PerkisOn the subject of locating a biorefinery we had another presentation on the subject here at the Transition To A Bio Economy conference. This one was by David Perkis, Purdue University.

He says the purpose of his work is to answer questions that local decision makers have such as, Where to locate plants?, What do we have to prepare for?, What can we do to entice a plant to our area? and Do we have a chance? He says that factors in having an optimal location for an ethanol plant is access to sufficient corn stover and transportation distances.

You can listen to my interview with David here: ff-bio-08-perkis.mp3

You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

Ethanol Plant Site Selection

Lance Andrew StewartBesides those out working in the industry we also heard from some university students today at the Transition To A Bio Economy conference. Lance Andrew Stewart is a grad student at the University of Tennessee. He did a very technical presentation on locating ethanol plants.

His work focused on the location determinants that attract potential plants in certain areas. He says that factors include, access to feedstocks like corn and locating away from an existing plant. He also made a point of saying that although plants can be very helpful to a rural community they must have enough infrastructure to support one.

You can listen to my interview with Lance here: ff-bio-08-stewart.mp3

You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

Rural Development Helping Rural Communities

Tony CrooksWe had USDA Rural Development represented here at the Transition To A Bio Economy conference by Tony Crooks. He works with their rural business cooperatives program and has done a lot of work with communities in the area of ethanol and biodiesel.

The challenge he says we have today in rural communities is the large capital outlay to get a biorefinery started so USDA is looking at creative ways to help them. He highly suggests that a community have a community development plan so they can better decide if a plant would be in their best interest. Ways that USDA Rural Development can help is with grants and guaranteed loans. He says they’re looking for communities who need financial assistance, especially in the second generation cellulosic area.

You can listen to my interview with Tony here: ff-bio-08-crooks.mp3

You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

Earth Friendly Fuel Location Opens in Kansas

ZarcoZarco 66 Earth Friendly Fuels plans to celebrate the opening of their eco-friendly fueling facility on Monday, June 30. The station is being designed under a public-private partnership as a demonstration project to showcase various energy technologies and feature sustainability elements on site.

Blends of ethanol, including E85, and biodiesel will be available at 900 Iowa St., in Lawrence, Kansas. Kicking off the celebration will be a press event that includes speakers: Sam Brownback, U.S. Senator, Kansas (invited); Pat Roberts, U.S. Senator, Kansas (invited); John Askew, Regional Administrator, EPA Region 7; and Adrian Polansky, Secretary, Kansas Dept. of Agriculture.

Ethanol fuel blend promotions will be held during the day from 11:30 a.m. – 2:30 p.m. E10 will sell at a 20 cent discount, E20 will sell for a 40 cent discount, E30 will sell for a 60 cent discount and E85 will sell for $1.85 per gallon.

Partners in this alternative fueling facility include: EPA Region 7, Ethanol Promotion and Information Council, University of Kansas, Kansas Dept. of Health and Environment, Kansas Dept. of Agriculture, Kansas Dept. of Revenue, Kansas Dept. of Commerce, Kansas Soybean Commission, Kansas Corn Growers, U.S. Dept. of Energy’s Office of Energy Efficiency and Renewable Energy in Kansas, Petroleum Marketers and Convenience Store Association of Kansas, and Zarco 66 Earth Friendly Fuels.

Energy BioSciences Institute Development

Paul WillemsThe luncheon speaker at the Transition To A Bio Economy conference focused on managing risk. Paul Willems works for BP Energy Biosciences Institute. He says it’s a collaboration between the University of California, Berkely, the Lawrence Berkeley National Laboratory, the University of Illinois and BP.

Paul says that their mission is to apply modern biology towards energy problems. The Institute was started in November of 2007 and is currently almost 70 percent staffed. They’ve already committed funding to about 50 projects and programs. Some examples of these programs include feedstock research and the discovery of new enzymes.

One of Paul’s key messages was not to get carried away with problems since solutions will take a while to achieve.

You can listen to my interview with Paul here: ff-bio-08-willems.mp3

You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

Flexibility and Diversification Key To R&D Risk

Gordon RausserTwo key words in a presentation at the Transition To A Bio Economy Conference were flexibility and diversification. These are important to managing risk, especially in R&D for renewable fuels.

Our presenter was Gordon Rausser, University of California, Berkeley, who was here with his assistant Maya Papineau. I interviewed them both together after the presentation. Gordon says that we should be looking at R&D risk as a portfolio of opportunities. He says we should be managing the overall risk by recognizing the inter-relationships among the technologies and their ultimate commercialization. He also says that stand alone analysis will miss much of the opportunities that will arise.

When it comes to flexibility he suggests giving yourself options so that you can take advantage of new opportunities as they arise. He says that current ethanol plants are vulnerable going forward since they don’t have the flexibility to move to different feedstocks.

Maya talked about probably breakthroughs in renewable energy technology. She says that it’s important for how you use public and private R&D resources to maximize the investment.

You can listen to my interview with Gordon and Maya here: ff-bio-08-rausser.mp3

You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

Looking At The Switchgrass Alternative

Jim LarsonThe second session here at the Transition To A Bio Economy conference was on risk and uncertainty.

Jim Larson, University of Tennessee, talked about farmers risk in growing switchgrass as a biomass feedstock for fuel production. He says that this is a commodity that will come into play looking forward. His research shows that it’s risky for farmers because it’s difficult to establish and takes several years to get to full yield. He thinks that farmers will need incentives from biomass processors to get started.

Harvesting this crop is also risky since you have to deal with large amounts of material that’s subject to weather and storage concerns. Some ways to help with risk would be contracting and price guarantees.

You can listen to my interview with Jim here: ff-bio-08-larson.mp3

You can also download the interview using this link (mp3).

I’m also uploading pictures to a photo album which you can feel free to use if you’d like: Transition To A Bio Economy Photo Album

Having a Positive Impact on Rural Communities

John MiranowskiOne of our speakers here at the Transition To A Bio Economy conference brought the discussion down to the farm level. John Miranowski, Iowa State University, spoke about the impact of biofuels on the rural economy and the farm structure.

He says that their numbers indicate that increasing biofuels production will have a positive impact on rural communities and farm structure up to a point but that it could have some negative impacts. One thing is certain, he sees an uncertain future for biofuels.

However, even with the uncertainty, he thinks the industry will make a go of it because of an increased demand for fuel. As far as where we’re going, he sees a bigger role for corn and corn stover fuels given the RFS and that this is one area where we have an ability to increase productivity while decreasing environmental impact concerns.

You can listen to my interview with John here: ff-bio-08-miranowski.mp3

You can also download the interview using this link (mp3).

I’m also uploading pictures to a photo album which you can feel free to use if you’d like: Transition To A Bio Economy Photo Album

Need To Increase Agricultural Productivity

David ZilbermanLike the first speaker on our program today here at the Transition To A Bio Economy conference, our second speaker, David Zilberman, University of California, Berkeley, says we need to increase agricultural productivity.

His talk was on the distributional effects of biofeuls and he had two conclusions. The first one is that biofuels make some people better off and some people worse off. Drivers are better off since they’re getting their fuel for about 15 cents less than if it didn’t have biofuels in it but consumers of food are worse off since the price of food is higher. He says that’s worse in developing countries where they’re seeing food prices 20 to 40 percent higher. This situation he says is causing political instability which will become an obstacle to the development of biofuels.

His second conclusion is that we have to increase productivity. He says that if we don’t we’re in real trouble. In order to increase agricultural productivity he says we must use biotechnology in all crops.

You can listen to my interview with David here: ff-bio-08-zilberman.mp3

You can also download the interview using this link (mp3).

I’m also uploading pictures to a photo album which you can feel free to use if you’d like: Transition To A Bio Economy Photo Album

Ethanol and Corn Price Link Not Long Term

Michael WetzsteinThe first speaker here at the Transition To A Bio Economy conference is Michael Wetzstein, University of Georgia. His talk deals with two issues. One is on price volatility and the other is on food and fuel.

Michael says that gas price volatility can be avoided with fuel diversification by blending renewable fuels with fossil fuels. That’s what his research shows. He also suggests that we could relax gas taxes and reduce the tariff on the importation of Brazilian ethanol.

Another part of his research is on food and fuel and to answer the question of “Is there a direct link between the volatility of ethanol production and the volatility of corn prices. His research has found that there is a link but not a persistent or long lasting one. In fact, in the long run he says there is no direct link.

The bottom line he says is to produce more food.

You can listen to my interview with Michael here: ff-bio-08-wetzstein.mp3

You can also download the interview using this link (mp3).

I’m also uploading pictures to a photo album which you can feel free to use if you’d like: Transition To A Bio Economy Photo Album