Domestic Fuel

Dr. Ken Cassman of Univesity of Nebraska-Lincoln, is now scheduled to make a special presentation at the Nebraska Ethanol Board meeting on March 6. Dr. Cassman is the co-author of a study that found that corn ethanol reduces greenhouse gas emissions by 51 percent compared to gasoline.

The study, published in the Journal of Industrial Ecology, found that the emissions created during the production and use of ethanol—lifecycle emissions—are lower than the lifecycle emissions of gasoline. Cassman said that this was partly because ethanol production has recently become more efficient than ever before, while previous studies had relied on outdated data.

“Increased efficiency in ethanol production combined with better agricultural practices mean that ethanol production yields a higher net energy gain and lower emissions than we previously thought,” Cassman said.

Cassman will summarize his research and the process of developing an emissions modeling system during his presentation at the Nebraska Ethanol Board meeting on Friday, March 6 at 8:30 am. The meeting will be held at Hampton Inn South, 5922 Vandervoort Drive, in Lincoln.

It certainly pays to be a Kansas State Wildcat this coming Monday, as students will get a FREE tank of E85 or E10 ethanol and a free lunch when they show their student ID at the Manhattan Farmers Cooperative. Plus, you could win an computer or a new hard drive.

The “Wildcat Free-For-All,” sponsored by the Kansas Corn Commission, the Renewable Fuels Association and Farmers Cooperative Association, takes place from 11am – 1pm.

If you’re not a student, you can still get a tank full of E85 for just 85 cents a gallon or E10 for only a buck! And that free lunch of hot dogs, chips and drinks is also for everyone.

While you’re filling up, take part in a 30-second video contest and be eligible to win an Apple Macbook or one of several 500GB Passport hard drives. Contest details are available at e85challenge.com.

Once again, don’t forget… Monday March 2, 2009 at the Manhattan Farmers Cooperative, 3384 Excel Road, Manhattan, Kansas, from 11am – 1 pm.

Free gas, free food, free computer stuff… what more could a college student want or need?

Honda has announced that they plan to build a new R&D facility in Japan that will focus on producing biofuels from non-food feedstocks. The 1,050 m2 lab is expected to be completed and operating by November of this year. Honda has been working with the Research Institute of Innovative Technology for the Earth since 2006 and began operating an experimental production facility in 2007.

The new Kazusa-branch facility of Honda R&D Co., Ltd. Fundamental Technology Research Center, will be built within the Kazusa Akademia Park (in Kisarazu, Chiba). Honda plans to build a single 1,050m2 building (approximate gross floor space) as a testing facility on the 5,000m2 lot. The construction is scheduled to begin in April 2009, with the goal to begin operations in November 2009.

At this time, Nissan is the only foreign automobile manufacturer that offers a flexible fuel vehicle (FFV). There are over seven million FFVs currently on American roads.

After alluding to putting $15 billion in renewable energy development during his State of the Union Address (see my post from last Tuesday night), Pres. Barack Obama has officially called for the money in his first budget.

From his statement posted on the White House Web page:

Because our future depends on our ability to break free from oil that’s controlled by foreign dictators, we need to make clean, renewable energy the profitable kind of energy. That’s why we’ll be working with Congress on legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy.

And to support this effort, we’ll invest $15 billion a year for 10 years to develop technologies like wind power and solar power, and to build more efficient cars and trucks right here in America. It’s an investment that will put people back to work, make our nation more secure, and help us meet our obligation as good stewards of the Earth we all inhabit.

The $15 billion is just part of the $3.5 TRILLION 2010 federal budget.

In a time when we constantly hear about rising unemployment, there’s some good news for the U.S. job sector… thanks to ethanol and biodiesel. A new report says advanced biofuels could directly create nearly 200,000 jobs in the next 13 years, with indirect and direct effects accounting for more than 800,000 new jobs and nearly $150 billion in economic activity during that same period.

The report by Bio Economic Research Associates, U.S. Economic Impact of Advanced Biofuels Production: Perspectives to 2030, analyzes the growth of an advanced biofuels industry and how it will impact four areas critical to U.S. economic recovery, including job creation, economic output, energy security and investment opportunity.

The report earned praise from The Biotechnology Industry Organization (BIO):

Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section, said, “The advanced biofuels industry could create 29,000 new jobs and create $5.5 billion in economic growth over the next three years, as companies continue to deploy the
technology. As the advanced biofuels industry grows to the levels established in the Renewable Fuel Standard, it will create more than 800,000 new jobs throughout the economy. These new jobs will be in sectors of the economy that have experienced the highest rates of job losses over the past year, including agriculture and construction.”

The new study’s results include:
• Direct job creation from advanced biofuels production could reach 29,000 by 2012, 94,000 by 2016, and 190,000 by 2022.
• Total job creation, accounting for economic multiplier effects, could reach 123,000 in 2012, 383,000 in 2016, and 807,000 by 2022.
• Direct economic output from the advanced biofuels industry is estimated to rise to $5.5 billion in 2012, $17.4 billion in 2016, and $37 billion by 2022.
• Taking into consideration the indirect and induced economic effects, the total economic output effect for the U.S. economy is estimated to be $20.2 billion in 2012, $64.2 billion in 2016, and $148.7 billion in 2022.
• Advanced biofuels production under the RFS could reduce U.S. petroleum imports by approximately $5.5 billion in 2012, $23 billion in 2016, and nearly $70 billion by 2022.
• The cumulative total of avoided petroleum imports over the period 2010–2022 would exceed $350 billion.

And BIO officials say by 2030, a modest target of 45 billion gallons of biofuels could produce nearly 2 million jobs and $300 billion in economic activity… plus the savings the country would see by not importing the oil to cover that fuel. They believe that advancing technology will help meet those goals.

Last summer, crude oil prices were skyrocketing to around $150 a barrel, and we were all sweating the $4-$5 a gallon fuel prices every time we pulled up to those gas pumps. It was during this time of anxiety that the debate around the role biodiesel and ethanol were playing in food price spikes that were also hitting everyone hard in the pocketbooks. Our friends at Farm Foundation took on this debate when they released in July 2008 the report, What’s Driving Food Prices?

What a difference eight months make, as oil prices have fallen back below $40 a barrel, and gas is a lot closer to a buck-and-a-half per gallon than the summer’s highs. Funny… food prices seem to have remained high… hmmmmm.

Well, in their never-ending quest to continue the conversation, the Farm Foundation folks have asked the report’s authors, Purdue University Economists Phil Abbott, Chris Hurt and Wally Tyner, to update their analysis of the drivers of food prices. Their findings will be the subject of a March 11th Forum at the National Press Club, 529 14th Street NW, in Washington D.C. The forum runs from 9 to 11 am, and they’ll even serve up a cup of joe starting at 8:30 am.

Contact my friend, Mary Thompson, Farm Foundation Director of Communications at mary@farmfoundation.org to RSVP by noon CST, Monday, March 9th. The forum is free.

This edition of the DomesticFuel Cast… and yes, we have returned on a regular basis… we look at Destiny, Florida… a community striving to be the nation’s first eco-sustainable city.

We talked to Roz Gatewood, the Vice President of Business Development for the 41,000-acre community founded in 2005 in South Central Florida… less than an hour from the attractions of Orlando and Disney World and less than a day’s drive from anywhere in the Southeastern United States.

She explains Destiny was founded by South Florida land developer Anthony V. Pugliese, III and Fred DeLuca, co-founder of Subway restaurants based on the principles of being sustainable on an agricultural, environmental and economical basis. When it is fully operational, the city will operate an energy park that produces power from biodiesel, ethanol, solar and wind sources for companies that contribute to sustainable industries, such as building solar panels. In fact, she says they hope there will be 16,000 green tech jobs in the city one day.

It’s a fascinating concept, and I think you’ll be interested in what she has to say. You can check it out here: DFCast-2-26-09.mp3

You can also subscribe to the DomesticFuel Cast by http://www.zimmcomm.biz/domesticfuel/domestic-fuel-cast.xml”>clicking here.

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The Alternative Fuel Vehicle Institute (AFVi) have announced that General Wesley Clark, T. Boone Pickens, and Jeff Schuster will be their keynote speakers for their 2009 conference. Their fifteenth annual conference will be held in Orlando, Florida on April 19-22, 2009.

Keynote speakers will be joined by 200 experts presenting topics in thirty-five concurrent sessions. Information will focus on evolving transportation policy and funding changes during created an opportunity for alternative fuels. Session topics will include legislation, air quality, plug-inhybrids, fuel cells, heavy-duty hybrids, biofuels updates, electric driveadvances, and in-depth workshops on federal funding, biofuels, vehicle conversions, and natural gas trucking.

An estimated 2,000 people are scheduled to attend the conference. For more information on the conference, go to http://www.afv2009.com.

“When the  history books are written, 2008 most likely will go down as an anomaly year, ” began John Urbanchuk, Director of LEGC, LLC. Housing market crash. Financial market crash. Global recession. Commodity boom and bust. Wave of bankruptcies. “We slipped into a recession in December 2007, ending a seven year run of economic growth.” But, he continued, President Obama, in his address last night, brought back his primary message: hope. 

There are several economic factors that affect the ethanol industry, says Urbanchuk. They include: corn supply and price; economic growth; consumer spending and gas demand; credit availability; oil and gas prices; and inflation. With the recent passing of several economic stimulus packages, along with the consumers driving more and oil prices back on the rise, the economy should see a turn-around by the end of 2009, early 2010.

Ultimately, Urbanchuk says, “The worst is behind us.” That’s great news for the ethanol industry.

 You can listen to Urbanchuk’s comments at the conference here: nec-09-urbanchuk.mp3

RFA recently released Urbanchuk’s latest economic report, “Contribution of the Ethanol Industry to the Economy of the United States.” Click here to download the full report.

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Indirect land use has been a hot topic at this year’s 14th annual National Ethanol Conference.

The ethanol industry has been working closely with many organizations on this issue including the National Resources Defense Council (NRDC). I caught up with Nathanael Greene, Senior Policy Analyst–Air and Energy, after he participated in the panel: The Impact of Lifecycle Greenhouse Gas Emissions on Ethanol Use. He spoke with me about why indirect land use is so important to the ethanol industry.

You can listen to my interview with Nathaneal here: nec-09-greene-joanna.mp3

See photos from the National Ethanol Conference here.

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Dell Computer officials have announced their 240,000 square-foot campus in Oklahoma City will be powered entirely by wind energy.

This story from PC Magazine says the move boosts Dell’s renewable energy use by 35 percent nationwide and is part of the company’s overall goal of becoming the greenest technology company on Earth:

The Oklahoma City facility is gearing up to its part in a partnership with Oklahoma Gas and Electric company that aims to prevent 5,100 tons of CO2 from entering the atmosphere each year. By 2015 Dell expects to cut its worldwide operations’ emissions by 40 percent. This will be achieved via on-site renewable-energy generation, purchasing renewable energy certificates, and further collaboration with local utilities.

“Integrating green power into our operations wherever and whenever possible is a key environmental and business strategy,” said Dane Parker, director of environment, health and safety at Dell. “It’s critical that our industry take a leadership role in the transition to a green economy. Aggressive energy efficiency and renewable-power targets are essential.”

Volkswagen will be running B5 biodiesel in all its race cars, transport vehicles and generators during the 2009 Jetta TDI Cup season.

This press release says they’ll be using the green fuel provided by Houston-based HYPERFUELS:

“We are extremely pleased to have HYPERFUELS as a partner for the 2009 Jetta TDI Cup series. SynDiesel(R) B5 biodiesel has been fully approved for use in all Volkswagen TDI powered vehicles that are available at local Volkswagen dealerships today,” said Clark Campbell, Motorsport Manager, Volkswagen of America, Inc. “The addition of SynDiesel B5 biodiesel in the Jetta TDI Cup race cars further demonstrates the feasibility of biodiesel as an alternative fuel source for American consumers and supports the clean and green racing of the Jetta TDI Cup series,” added Campbell.

“HYPERFUELS is excited that the 2009 Volkswagen Jetta TDI Cup and SCCA Pro Racing acknowledge that the addition of biodiesel creates a clean performance racing fuel,” said Jess Hewitt, President, Gulf Hydrocarbon, the parent company of HYPERFUELS. “If we can help take biodiesel awareness and performance to the next level, then everyone wins. It’s cleaner burning, yields a faster burn, produces less emissions and is easily accessible. I can’t imagine a better fuel or better cars to showcase the performance and benefits of biodiesel,” added Hewitt.

Officials say this brand of biodiesel has 20 percent more BTUs than petroleum diesel. No wonder they’re using it in racing cars.

From left to right, Bliss Baker, Executive Director, Global Renewable Fuels Alliance; Gordon Quaiattini, President, Canadian Renewable Fuels Association; Robert Veirhout, Secretary General, European Bioethanol Industry Organization; Bob Dinneen, President and CEO, Renewable Fuels Association

The Renewable Fuels Association, the Canadian Renewable Fuels Association and the European Bioethanol Industry Organization have joined together to form the Global Renewable FuelsAlliance. Their first initiative is to reach out to the World Bank, along with other organizations, to encourage them to make investments in developing countries’ biofuels infrastructure a top priority.

While Brazil is not yet a part of this organization, Bliss Baker, Executive Director, of the Global Renewable FuelsAlliance, said that they have spoken and invited them, along with dozens of other worldwide organizations, to join the alliance. Bob Dinneen, President and CEO of the Renewable Fuels Association followed up by saying, “Quite frankly, we expect them to join.”

The announcement of this global alliance comes on the heals of President Obama’s commitment to continued biofuels development in the States and the cooling of the “food versus fuel debate” which was proven to be a hoax this summer as commodity prices plummeted and food prices skyrocketed. There was a consensus among the group that the time was right to begin working together to help build the global energy infrastructure.

Gordon Guaiattini, President of the Canadian Renewable Fuels Association, stressed the importance of helping developing countries develop their agricultural productivity. “Agriculture productivity and poverty are directly linked.” He wants this new organization to take a similar approach that leading agricultural groups have, who have for years, helped developing countries adopt more sustainable practices while increasing output. He said that they will ensure that biofuels are developed in a sustainable manner that will allow poverty stricken areas to significantly increase their economic condition. 

As energy is a global issue, this new alliance, which represents 60 percent of the global biofuels production and 29 countries, will focus on ensuring that international biofuels policies are sustainable, and developed in a way that each countries’ best interest as the center of all decisions. To learn more, visit the Global Renewable FuelsAlliance’s website at www.globalrfa.org. 

Click here to listen to the full press conference: nec-09-grfa-conference.mp3

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Growth Energy will be holding a press conference this morning.

Growth Energy Co-Chairman General Wesley Clark will announce two new members of the leadership team at Growth Energy on Wednesday, February 25, 2009 at 10:30 a.m. EST. Clark will name a CEO and a Senior Advisor, both known for their leadership and service, who will help Growth Energy achieve its goals of creating American jobs at home, reducing greenhouse gas emissions, and decreasing our dependence on foreign oil through the expanded use of ethanol in our gasoline supply.

Several sources here at the National Ethanol Conference have told us that Tom Buis, President, National Farmers Union, will be announced as the new CEO for Growth Energy. I’ll be on the conference call to confirm this later this morning.

Post Update: This is confirmed now and I’ve recorded this morning’s press conference call that includes remarks from Wesley Clark, Tom Buis and Jim Nussle. You can listen to the press conference here: growth-energy-press-conf-buis-nussle.mp3

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Just moments ago, Pres. Barack Obama, in his first State of the Union Address, laid out his plan he believes will lead to the recovery of the U.S. economy. And alternative energy could wind up being a big winner as part of the plan.

Obama said that while “we have known for decades that our survival depends on finding new sources of energy,” we’re continuing to import more foreign oil than ever before. Part of the solution to that ever-growing dependence on foreign oil are alternatives, such as biodiesel, ethanol, solar and wind energy, as well as hybrid vehicles. Obama wants $15 billion to invest in those green energy sources From his speech posted on the White House Web site:

“We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy efficient. We invented solar technology, but we’ve fallen behind countries like Germany and Japan in producing it. New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea.

We will soon lay down thousands of miles of power lines that can carry new energy to cities and towns across this country. And we will put Americans to work making our homes and buildings more efficient so that we can save billions of dollars on our energy bills.

But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America. And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America.

Obama also pointed to Greensburg, Kansas as an example of how the entire country can rebuild in a green energy way. Maybe, then, our economy can as well.