Domestic Fuel

The loss of ethanol as a sponsor has left Rahal-Letterman Racing (RLR) without a car or a driver for the upcoming IndyCar Series season, but co-owner Bobby Rahal is still looking.

In a statement responding to media reports this week, Rahal said, “As of this time we do not have any sponsorship that will allow us to compete in the IRL in 2009, but by no means does that mean that we are giving up. We are continuing to search for sponsorship to run the 2009 season and to run in the Indianapolis 500 and we feel that there is still time for us to put something together that will allow that to happen.”

Rahal is still hoping the team, which does have some secondary sponsors, will at least be able to compete in the Indianapolis 500 in May if a major sponsor steps forward. But the tough economy is making it difficult to find a replacement for what amounts to a $6 million commitment.

Rahal Letterman’s number 17 Team Ethanol car driven by Ryan Hunter-Reay won its first race last year at Watkins Glen, N.Y. Hunter-Reay was also named Indy 500 Rookie of the Year, but at this point he has no ride for the 2009 season.

RLR is co-owned by television talk show host David Letterman. The team won the 2004 Indianapolis 500 with driver Buddy Rice and brought Danica Patrick to the IRL in 2005 when she was named Rookie of the Year. Rahal himself won the Indy 500 in 1986. Rahal Letterman Racing remains committed to its programs in the Firestone Indy Lights Series as a partner with Andersen Racing, its American Le Mans Series program with BMW Rahal Letterman Racing Team as well as its new partnership with Formula BMW Americas.

An impressive line-up of national leaders in ethanol production, marketing, co-products, transportation, engineering, financing and environmental issues have been announced for the Ethanol 2009 Emerging Issues Forum, April 2-3 in Omaha.

Organized by the Nebraska Ethanol Board, the Emerging Issues Forum is an annual regional conference for ethanol producers, marketers and related industries. Special topics this year will include ethanol policy under the new administration, innovations in corn fractionation, financial and legal issues, the blend wall, and the dynamics of RINs.

The event will be held at the Magnolia Hotel in Omaha and the deadline for room reservations in March 3.

The U.S. Departments of Energy (DOE) and Agriculture (USDA) today announced up to $25 million in funding for research and development of technologies and processes to produce biofuels, bioenergy, and high-value biobased products.

“These projects will be among many Obama Administration investments that will help strengthen our economy and address the climate crisis. A robust biofuels industry – focused on the next generation of biofuels – is critical to reducing greenhouse gas emissions, reducing our addiction to foreign oil and putting Americans back to work,” said Secretary of Energy Steven Chu.

“USDA is committed to research that will support President Obama’s goal of dramatically increasing the production of biofuels in the United States,” said Agriculture Secretary Tom Vilsack. “These grants will help support the development of a sustainable domestic biofuels industry by broadening the nation’s energy sources as well as improving the efficiency of renewable fuels.”

Funding is being offered for projects in three specific areas – Feedstocks development; Biofuels and biobased products development and Biofuels development analysis.

Ethanol production for 2008 is still expected to have exceeded the goal of nine billion gallons for the year, but not by as much as anticipated. While the industry was on track to produce about ten billion gallons for the year, the latest figures for November indicate it will be more like 9.1 billion.

According to the Energy Information Administration (EIA), American ethanol facilities averaged 668,000 barrels (about 28 million gallons) per day. That’s about 8 million gallons per day more than November of 2007. Through November, the ethanol industry was averaging 596,000 b/d of production – which would mean about 9.1 billion for the year if December holds up to the average.

The Renewable Fuels Association reports that demand continued to outpace production for ethanol in November by about 15,000 barrels per day. Average ethanol demand for the year through November 2008 was over 26 million gallons per day.

According to RFA, the recent economic troubles have had an impact on America’s ethanol industry as they have every other sector of the American economy and they estimate that approximately 1.8 billion gallons of production capacity is currently idled.

Oregon could become the latest state to mandate that every gallon of diesel sold in the state have a 2 percent biodiesel blend.

As you might remember from my post last August 29, the state has a new five-million-gallon-a-year biodiesel plant run by Sequential Pacific Biodiesel, and five-million gallons is the threshold for Oregon’s mandate to kick in. This article in the Burns (OR) Times Herald says the state Department of Agriculture and Oregon Department of Energy are letting motorists know they expect the actual production to hit that mark this coming September:

“The most important thing for motorists to know is that they shouldn’t see any change to their fuel economy or their vehicle’s performance when using a 2 percent biodiesel blend,” said Stephanie Page, ODA’s renewable energy specialist.

The implementation of the biodiesel requirement follows last year’s implementation by ODA of the renewable fuel standard requiring 10 percent ethanol in gasoline sold in Oregon. About 1.5 billion gallons of gasoline are sold in Oregon each year and about a half billion gallons of diesel. Even though the biodiesel requirement will affect far fewer motorists, state officials want to get the word out.

Officials went on to caution retailers and wholesalers that they should clean and prep their storage tanks before receiving the blended diesel.

Wind energy is an important resource for the country, and our friends at Farm Foundation are sponsoring another important conversation on the subject.

The Farm Foundation Forum: Wind Energy Issues and Challenges will be held Tuesday, February 10, 2009 from 9 to 11 am (coffee starts at 8:30 am) at the National Press Club, 529 14th Street NW, in Washington D.C.:

Presenters will be: Ian Baring-Gould, National Renewable Energy Laboratory; Peggy Beltrone, Commissioner, Cascade County, Montana; Mark Willers, MinWind, Luverne, Minn.; and John Holt, National Rural Electric Cooperative Association.

There is no charge for attending, and everyone is invited. As always, Farm Foundation hopes to get a wide variety of opinions at this forum to make sure they’re hearing real solutions… not just everyone singing from the same page. These conversations are challenging, because these days we really need ideas that challenge the norm.

If you want to attend, please RSVP by noon CST, Friday, Feb. 6, to Mary Thompson, Farm Foundation Director of Communications, mary@farmfoundation.org.

The National Ethanol Vehicle Coalition (NEVC) recently elected five new members to three years terms on their Board of Directors. New members include: Shirley Ball of Ethanol Producers and Consumers ((EPAC) Ms. Ball was re-elected to an additional 3 year term); Don Borgman of John Deere; Tom May of MFA Oil Company; Dave Weber of Abengoa Bioenergy Trading; and DeVonna Zeug of the Minnesota Corn Growers Association.

“It is a privilege for MFA Oil to have a retailer’s voice at the table with the rest of the valued stakeholders in the efforts to reduce our dependence on foreign oil, have cleaner emissions from our transportation sector and bring economic value to our country thru the NEVC’s continued efforts to promote higher level blends of ethanol,” said Tom May, director of marketing for MFA Oil Company. MFA Oil Company operates more than 50 E85 fueling stations throughout the Missouri, Iowa and Arkansas.

The NEVC also elected officers for 2009: Bernie Punt, general manager of Siouxland Energy and Livestock Cooperative of Sioux Center, Iowa will serve as the Board Chairman. Elected as Vice-Chairman was Dwayne Siekman, executive director of the Ohio Corn Growers Association. Scott Negley, director of North America Product Management of Dresser Wayne will be serving as Secretary of the NEVC. Finally, DeVonna Zeug, a corn and soybean farmer from Walnut Grove, Minnesota, will serve as Treasurer representing the Minnesota Corn Growers Association.

“We are pleased to welcome these industry leaders as new NEVC board members,” noted Chairman of the NEVC Bernie Punt. “The NEVC provides the opportunity of bringing together a group of stakeholders that can offer unique views while working together to promote high level blends of ethanol fuel in flexible fuel vehicles. We look forward to working with each of them in advancing this goal.”

That headline is not a slap to the green fuel. Biodiesel made from what would be waste is now fueling the trains at one of America’s most beloved theme parks.

This story from Orange County (CA) Register says Disneyland is now using the leftover grease from its restaurants to power its trains:

On Wednesday, the five Disneyland Railroad trains that circle a one-mile perimeter of the park began running on cleaner burning biodiesel made with oil that comes from the resort’s restaurants and hotels.

Barrels of discarded oil – which resembles maple syrup – are shipped to the Coachella Valley, mixed with a small portion of diesel fuel, then shipped back to Disneyland.

Park officials eventually want to run the Mark Twain paddlewheel steamboat, some cleaning equipment and light towers on the french-fry grease biodiesel.

British carmaker Bentley is known for its high-end, performance vehicles that will set you back some green. Now, the company is introducing a car that will run green.

The photo above of the “extreme Bentley” is just a sneak peak at its latest speed demon… one that will run on ethanol. From the Bentley Web site:

On March 3rd at the 2009 International Geneva Motor Show, Bentley will reveal its fastest, most powerful production car ever.

Importantly, it will be capable of running on biofuel, delivering on a key component of Bentley’s environmental commitment and pioneering the use of this fuel in the luxury sector.

Maybe I should talk Chuck and Cindy into sending me to Geneva for the March auto show so I can test it for myself. Or, just rent me one of these bad boys for a test-driving year or so! The sacrifices I would make just to bring you the best information.

Scientists have mapped the genome of sorghum, and the discovery could open the door for even greater use of the crop in biofuel, especially ethanol, production.

This story from the USDA’s Radio Newsline says since sorghum grows in drier climates and is more resistant to disease than corn, researchers are looking at ways to transfer some of sorghum’s traits over to corn.

Rutgers University molecular scientist Joachim Messing says the discovery could allow a more efficient use of corn. “And we wouldn’t have the competition between using corn for feed and food and biofuels.”

Messing says the use of cellulose from corn stalks to make ethanol has required an extra step to turn it into ethanol. But sorghum already has a sugar that can be fermented into ethanol, making a more effective biofuel feedstock.

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A summit aimed at helping renewable energy professionals communicate the good, green news about this growing industry is coming up this April in Minneapolis. This timely event is the first of it’s kind dedicated specifically to the success of communicators working in the alternative energy industry.

The Communicating Renewables Summit 2009 will feature presentations on topics such as, How to Develop Effective Media Relationships; A Strategic Approach to Fundraising; Pit Bull Media Tactics; Green Noise; Social Media: The New Range War?; Unification of Messages Through Coalition Building; A Reality Check: What Consumers Really Think of Green; and much more.

The event will be held April 21-23 at the Hotel Minneapolis. Registration is now open and more information can be found here.

Domestic Fuel is proud to be a sponsor of this event to help encourage more effective communications for the alternative energy industry.

Pres. Obama’s economic stimulus bill passed the U.S. House, but its provisions that will help renewable energy, especially solar and wind power, are still in jeopardy unless lawmakers in the Senate and House can get together on their differences in their two versions of the bill.

This story from Greentech Media says the biggest difference in the two bills deals with allowing renewable energy projects to get direct payments instead of tax credits, a provision which solar and wind power industry groups say will be critical to jump-start funding:

Along with a host of plums for renewable energy – $8 billion in loans for renewable energy power generation and transmission projects and $2 billion for energy efficiency and renewable energy research – the House version of the stimulus bill contained a provision to convert investment tax credits that solar power developers rely on into direct payments to investors for the next two years.

But a version of the bill now being circulated in the Senate doesn’t contain the DOE grant provision, Chris O’Brien, head of North America market development for Swiss solar equipment maker Oerlikon Solar, said Wednesday.

Of course, the bills have to be reconciled before anything can go to the president for his signature. Plenty of us will be watching to see what happens.

This weekend is the beginning of the 2009 National Biodiesel Conference & Expo in San Francisco!

Just before he heads out to the conference bright and early Thursday morning, I caught up with National Biodiesel Board Chief Operating Officer Donnell Rehagen, as he was hurrying around NBB headquarters, putting the finishing touches on the details for the four-day conference.

I’ve got to tell you, he’s really excited about holding the premier event for biodiesel in San Francisco… a city known for its support of biodiesel. In fact, nearly the entire municipal fleet runs on B20.

As always, those attending will have plenty of chances to hear from a wide variety of experts in production, marketing, regulatory issues, and of course, sustainability. In fact, there’s a Sustainable Biofuels Summit starting a day early, Saturday.

But not everything’s strictly business. There’s a golf tournament and a couple of entertainment superstars to see as well. Rocker Melissa Etheridge and actress Daryl Hannah, both big backers of biodiesel, will be at the conference.

Donnell says there’s still time for you to sign up and attend. You can do it through the conference Web site or in person at San Francisco’s Moscone Center starting Sunday, running through February 4th.

You can hear my entire interview with Donnell here: Rehagenintvw.mp3

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Kansas Secretary of Agriculture Adrian Polansky announced today that he is making permanent the guidelines his department developed for a pilot project to allow at-the-pump blending of biofuels, including blending ethanol with gasoline in percentages ranging from 10 percent to 85 percent.

Blending under the guidelines was allowed on a trial basis under a pilot project that ran throughout 2008.

“Information we collected during the pilot project confirm that blending pumps can consistently and accurately dispense a range of ethanol blends from a single pump,” Polansky said. “This is a real boon for owners of flexible fuel vehicles who want more choice than either 10 percent or 85 percent ethanol that are the blends most frequently offered. These blender pumps allow vehicle owners to select the blend that works best for them based on performance and price.”

To prevent consumers who aren’t driving a flexible fuel vehicle from dispensing a higher ethanol blend than is appropriate for their vehicle, the pumps feature a bright orange label with the message, “For use in flexible fuel vehicles only.”

It’s been another record-breaking year for wind energy in the United States.

A new report from the American Wind Energy Association says that the country’s wind energy industry in 2008 shattered the previous year’s record generating capacity by installing 8,358 megawatts (MW) of new capacity. That’s enough to light and heat more than 2 million homes! But at the same time, the association warns of an uncertain future because of the country’s financial bind:

The massive growth in 2008 swelled the nation’s total wind power generating capacity by 50% and channeled an investment of some $17 billion into the economy, positioning wind power as one of the leading sources of new power generation in the country today along with natural gas, AWEA added. At year’s end, however, financing for new projects and orders for turbine components slowed to a trickle and layoffs began to hit the wind turbine manufacturing sector.

The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added nationally last year, according to initial estimates, and will avoid nearly 44 million tons of carbon emissions, the equivalent of taking over 7 million cars off of the road.

The AWEA says quick action on Pres. Obama’s economic recovery plan, which includes some provisions that would help the wind industry is needed as wind turbine makers and construction outfits are getting nervous about the future. The group points out that wind energy jobs grew dramatically in 2008 to 85,000… up from 50,000 a year ago.

The past year also marked a bit of the changing of the guard as Iowa surpassed California in the amount of wind power generating capacity, with Iowa having 2,790 MW and California with 2,517 MW. Of course, both are still far behind Texas, which has a whopping 7,116 MW.