Domestic Fuel

The Illinois Corn Growers Association today unveiled two landmark studies on ethanol that conclude production of the biofuel leaves a smaller carbon footprint than gasoline and has substantial room for growth without affecting corn supply to the food and feed sectors.

Dr. Steffen Mueller, principal research economist at the University of Illinois at Chicago’s Energy Resources Center, studied the carbon footprint of the Illinois River Energy facility near Rochelle, Illinois which produces 55 million gallons of ethanol annually.

“We looked at the global warming and land use impact of corn ethanol produced at the Illinois River Energy ethanol plant — which is a modern, natural gas fueled facility — on a full life-cycle basis,” said Mueller. “We found conclusively that the global warming impact of the modern ethanol plant is 40 percent lower than gasoline. This is a sizable reduction from numbers currently being used by public agencies and in the public debate. The study also documents the significant net energy benefits of ethanol when compared to gasoline. And, additional opportunities exist to expand that margin even more through technological improvements and on farm changes in corn production that reduce green house gas emissions. Furthermore, corn supply for the ethanol plant was primarily met through yield increases in the surrounding area and, as documented with satellite imagery, without conversion of non agricultural land to corn.”

The study by Ross Korves, economic policy analyst at ProExporter Network, analyzed the consequences of a technology-driven revolution that is occurring throughout America agriculture which would see average corn production increase from 155 bushels an acre today to 289 bushels over the next two decades. The study suggests that sufficient amounts of corn will be available to increase ethanol production from the current level of 7.1 billion gallons last year to 33 billion gallons by 2030 with current technology. The study also factors in increased future demand for corn from both export and livestock (feed) sectors. Korves also looked at the environmental impact of ethanol production, predicting that the global warming impact (GWI) of the average ethanol plant would decline dramatically through increased efficiencies in coming years.

“The GWI of the average ethanol plant is expected to decline 27 percent by 2030,” said Korves. “By that year, the GWI of corn ethanol processed in a plant using a biomass combined heat and power system will be less than one-third of the GWI of gasoline.”

The Illinois Corn Growers Association also announced that the state has become a technological and commercial leader in corn-based ethanol.

The City of Birmingham, Alabama will test a transit bus that will run on hydrogen next year.

This story from the Birmingham (AL) News says it’s the work of a University of Alabama-Birmingham engineering team, along with Auburn University… among others:

“This testing in Birmingham gives us a chance to evaluate the fuel cell in a unique, real world setting,” said Fouad Fouad, UAB team leader and chair of the Department of Civil, Construction and Environmental Engineering.

The project is funded through a congressional earmark from U.S. Sen. Richard Shelby to research alternative fuels and hydrogen as an energy source.

The article goes on to say that the first phase of the test will use to small hydrogen fuel cells to run the bus, working up to a larger cell.

Students from the University of Colorado are spreading the good news of biodiesel… and going mobile to do it.

This story from the Colorado Daily says the CU Biodiesel program is using donated, used restaurant cooking oil in a production facility that is contained in a trailer:

“I’ve taught everyone from post-graduate students to second-graders how to brew their own biodiesel,” said CU senior Mike West, director of education for CU Biodiesel. “That’s the whole point of the project — to show people how easy it is to brew biodiesel.”

“This is going to be CU’s in-house, or in-parking lot, biodiesel production facility,” Jaffe said of ESTER, which began construction three years ago through a $46,000 grant from the CU Environmental Center.

The trailer is capable of producing 500 gallons of biodiesel a month, but more importantly, can go to schools to teach more people how to brew their own biodiesel.

CU is also holding a contest to come up with a winning design for the trailer. Students with ideas are invited to download a blank form and submit their ideas by November 19th at www.cubiodiesel.org.

Iowa State University has received an $885,000 U.S. Department of Energy grant to see how small particles can be used to help make biodiesel production bigger.

This story from Biodiesel Magazine says the school’s Ames Laboratory is researching how nanoscale particles can be used to get chemical compounds (triglycerides, neutral lipids, and fatty acids) from microalgae for biodiesel production.

According to Kerry Gibson, a media relations staff member at Ames Lab, ISU just completed a research project that successfully used chemically-coated, honeycomb-like silica nanoscale particles to penetrate plant cell walls to deliver molecules to the cells. The biodiesel research project will attempt to use the nanoscale particles to penetrate the cell walls of microalgae to harvest chemicals from the algae to produce biodiesel without destroying the organisms. “It’s basically nanofarming,” Gibson said.

The lab will need to get another nearly $250,000 in funding for the three-year project, which is being headed by Victor Lin, Ames Lab chemist and ISU chemical and biological science program director.

The Tennessee Department of Transportation (TDOT) is now using blue logo signs to inform motorists about the availability of E85 and/or biodiesel along interstate highways.

“The BIOFUEL logo program complements and supports Governor Bredesen’s Biofuel Green Island Corridor project, which provides competitive grants to help retail station owners convert or install storage tanks and dispensers to sell E85 and/or B20 to the public,” noted Ed Cole of TDOT.

“We encourage more eligible stations to advertise their E85 and B20 pumps on interstate signs,” said Alan Jones, Manager of TDOT’s Environmental Policy Office.

For participating stations, TDOT will install a highly visible BIOFUEL marker above mainline Gas logo boards and off-ramp signs at the interchange. To qualify, sites must meet location requirements of the logo sign program.

To learn more about this initiative, go to http://www.biotenn.org.

Agriculture Secretary Ed Schafer met with livestock, dairy, and feed grain organizations on Monday to explain how some rural businesses – including both ethanol plants and livestock industries – may be eligible for the USDA’s Business and Industry Loan Guarantee Program.

“We walked through the B&I loan guarantee program, which has been used by their memberships, and we assured them that this was a long-standing program that we would use to help finance businesses in rural America, some of them may be ethanol facilities,” Schafer said. “We assured them that no specific money was being set aside only for the ethanol industry.”

Schafer understands why the livestock industry might have been concerned about stories that came out after comments he made to reporters at the World Food Prize symposium.

“It’s one of those situations where everybody is nervous out there, a lot of these folks have seen increased feed costs,” Schafer said. “There’s been a big effort by others to blame ethanol for increased feed and food costs and certainly ethanol production has been a small portion of that but it’s easy to kick around the new kid on the block and so we attack ethanol.”

He says there was a misunderstanding among some that the government was going to use part of the $700 billion bail out package to help ethanol plants that lost money this year by speculating on the commodity markets. But, Schafer said it was important for the livestock industry to know that the loan program is there for them as well. “And we’re going to pass along the elements of the Business and Industry loan guarantee program to them that they can pass out to their members.”

The program was established in 1974 to help local rural business by backing loans from private lenders for up to $25 million for credit-worthy entities. Loans are only given after due diligence is performed and the USDA has reviewed the businesses cash flow, management and other issues.

A British company has developed a hot new sports car that can run on ethanol.

The description for the new Climax on its website is pure poetry:

Inspiration for the design came from the legendary Cooper Climax F1 car of the 50’s and is drawing on Britain’s vast Motor Sport Heritage while keeping a firm eye to the future. It is not a retro car, it is a modern Super Car designed with the discerning enthusiast in mind. It is revolutionary and has been designed to set a new standard in the niche vehicle sports car market. The Climax is bespoke and exclusive, quintessentially British, hand-finished, with excellent performance and superb handling.

The Climax can run on “both bio-ethanol and unleaded petrol, therefore enhancing performance and reducing the cars carbon footprint.”

One drawback – besides the $135,000 price tag – despite all the extras, the car has no roof – just a removable cover for parking outside. Like you would park a car like this outside!

Representatives from both sides of the food versus fuel debate discussed the issue on Friday in Kansas City during a forum held by the Agricultural Business Council of Kansas City.

Speakers included USDA Undersecretary Tom Dorr; editor Morton Sosland of Sosland Publishing Co.; and Randy Schnepf, agricultural economist with the Congressional Research Service.

The panel moderated by Mike Adams of Agri-Talk included two farmers – Blake Hurst, vice president of Missouri Farm Bureau and Ken McCauley, past chairman of the National Corn Growers Association – who represented the fuel perspective. On the food side were Robb MacKie, president of the American Bakers Association, and Dan Gustafson of the Food and Agriculture Organization.

Notably, all four panel members made the point that biofuels are not the main culprit for rising food prices and agreed that major factors behind rising food costs include tight global grain stocks, export bans, and record energy costs. “It appears the volatile corn and wheat markets have adjusted down, for now. The key constraints on global grain stocks remain to be land available for agricultural production and crop yields,” said Schnepf.

McCauley noted that crop yields may double by the year 2030. “We are currently using all available technology to significantly increase corn production, and there is more technology in the pipeline that will boost yields even more,” McCauley said. “Likewise, we can find new markets for corn while still meeting all traditional needs and being responsible stewards of the natural resources we’ve been given.”

The world’s largest ethanol producer opened a third plant in Ohio on Friday. POET Biorefining – Marion is POET’s 26th ethanol plant, bringing the company’s total annual capacity to 1.54 billion gallons.

Senator George Voinovich (R-OH) joined company representatives and local dignitaries for the opening ceremony.

“I could not be more proud of POET’s commitment to Ohio agriculture and Ohio jobs, and our nation’s national security,” Sen. Voinovich said. “This facility, along with the plants opened in Leipsic and Fostoria, represent a critical part of Ohio’s future economy and reaffirm Ohio’s role as one of the top agricultural states and as one of the leading innovators and developers of alternative energies in the nation. POET’s commitment could not come at a more needed time for our nation’s environmental, economic and national security needs.”

POET was recently listed by Forbes as one of “Eight Promising Alternative Energy Companies.” The company’s next major milestone will be the start of ethanol production before the end of the year at a pilot-scale cellulosic ethanol plant currently under construction in Scotland, S.D.

The South Dakota Corn Utilization Council is partnering with Northern State University to present the First Annual Ethanol Bowl next month.

The premiere event will feature the NSU Wolves facing Northern Sun Intercollegiate Conference rivals the Augustana Vikings on November 8 at Clark Swisher Activities Complex in Aberdeen, S.D.

“Northern State looks forward to celebrating a growing industry in our region and enjoy some great NSIC football,” said Bob Olson, NSU Athletic Director.

A German maker of wind turbines is locating to Arkansas, part of that state’s growing wind turbine manufacturing industry.

This article from the Northwest Arkansas Morning News says Nordex USA Inc will build a $100 million plant, employing 700 people in Jonesboro and beginning production in January 2010:

Nordex is an original equipment manufacturer, meaning some of its parts and components suppliers are expected to locate in the area, officials said.

Last year, Danish-based LM Glasfiber announced it would build a $150 million windmill blade plant and eventually employ 1,000 people in Little Rock. That company also planned to open a training academy there as well as its North American headquarters.

Arkansas Gov. Mike Beebe praised the move, saying this is an indication of the type of business that will only grow in the future.

Tampa, Florida could become a major port for alternative fuels… just in time as an area just up the road is expanding its potential to produce biodiesel.

Yesterday, I told you about how Groveland is expanding its biodiesel production capabilities and hopes to rival Houston, Texas in terms of green fuel refining. Now, GreenHunter Energy Inc. of Houston might be building a $70 million facility to store and produce biofuels at the Port of Tampa and has paid $1 million to lease a 22-acre site, according to this story in the Tampa Tribune:

The project would give GreenHunter a “foothold in a deep-water port that handles over half of the transportation fuel used in the state of Florida,” GreenHunter Chairman and CEO Gary Evans said.

The company is also developing six wind-power projects in Montana, California and New Mexico. In addition, it recently paid $2.5 million for a 14-megawatt power plant near Tallahassee that uses wood waste to generate electricity.

The line of speakers have been announced to participate at the 2008 Missouri Agribusiness Summit on November 12 in Columbia, MO. The purpose of this event is to provide information to agribusinesses and producers regarding current industry topics and to promote the local resources that are available to agribusinesses.

“The 2007 inaugural Summit covered a lot of great topics, and we’re hoping this year’s event is at a similarly high level. Last year, our attendees included producers, biofuel cooperatives, retailers and researchers, so the topics are geared toward that audience,” noted Kari Dowell of Williams Keepers, LLP, a sponsor of the event.

Speakers slated for the event include: Rep. Brian Munzlinger; Michelle Kautz of the National Ethanol Vehicle Coalition; Jenna Higgins of the National Biodiesel Board; Dept. Ag Director Don Steen; Gary Clark of the Missouri Corn Growers Association and others.

Additional sponsors are: Bryan Cave LLP, the Missouri Agricultural & Small Business Development Authority, Missouri Corn Growers, and Missouri Soybean Programs.

It’s kind of a good news/bad news thing.

One the one hand, the wait to get wind turbines seems to be easing. But as this article from Greentech Media says, the credit crunch is helping ease that backlog:

“Turbines are available now, which is refreshing,” said Brad Johnson, director of business development at John Deere Renewables, on Thursday. “Before the credit crisis, it was very difficult to get turbines. We are finding a variety of choices.”

But the credit crunch and faltering economy are sending a cold breeze through the wind industry, which typically borrows money from banks and other investors to build wind farms.

Another bit of good news is, American wind power production is on track for another record year… and is expected to do even better next year. Sooner or later, the credit crisis will pass as the finance industry jumps back into the wind energy game.

Some locally grown mustard seeds could soon be powering buses in Monterey County, California.

This story from the San Mateo County (CA) Times says the mustard seed oil could be turned into biodiesel by the end of this year:

By December, Monterey-Salinas Transit officials hope to have refined mustard-seed oil — which will be mixed with regular diesel fuel — from about 3,000 pounds of seeds harvested in August from a 10-acre field in the King City area.

The ton and a half of seed will produce about 750 to 800 gallons of biodiesel. Like other biodiesel, the mustard oil will constitute 20 percent of the fuel mixture that powers the buses, he said.

The article goes on to say the experiment with the wild mustard seed ran into a snag when the field was overrun by turnips.