Domestic Fuel

The Chicago Farmers, a group that provides educational forums between its members and those allied to agribusiness, will talk energy matters during its next meeting on Monday, March 16th at the University of Northern Illinois-Naperville campus.

According to the group’s Web site, the “Renewable Energy: Agriculture’s Impact Present & Future” is a must-attend event for those who own farmland in the Midwest, as energy issues have an effect on commodity prices, land value and leasing terms:

A panel discussion including:

· Dr. Martha Schlicher: GTL Resources plc, Technology and Business Development

You can register at the event, starting at 5:30 pm (program starts at 6:15 pm) or through this Web site by noon, Thursday, March 12, 2009

A new cellulose ethanol project is in the works for Saskatchewan.

KL Energy Corporation of South Dakota and Prairie Green Renewable Energy of Alberta have announced their intent to develop a cellulose ethanol plant near Hudson Bay, Saskatchewan.

According to a joint release from the two companies, the Northeast Saskatchewan Renewable Energy Facility will use KL Energy’s state of the art design and engineering to produce advanced ethanol from wood waste.

The companies plan to build a plant that initially provides 5 MGY of cellulose ethanol to the Saskatchewan market. Plans include a second facility that will allow doubling production.

The 2009 Northern Illinois University (NIU) Clean Snowmobile Team will be competing in the Society of Automotive Engineering (SAE) Clean Snowmobile Challenge. The team will be sponsored by the Illinois Corn Marketing Board (ICMB). This year’s competition’s theme will be “Flex Fuel” and NIU’s snowmobile will run on ethanol.

The annual SAE Challenge began in 2000 and tests the engineering and design capabilities of students from schools across the country. The “challenge” of each competition has been for students to modify a stock snowmobile to meet a series of requirements, including air pollution levels.

NIU ran their snowmobile last year on E85, and won 6th place overall and rookie of the year. This year’s competition will be held March 16-21 at Michigan Technical University in Houghton, Michigan.

As I told you yesterday, the European Union has decided to slap some tariffs on American biodiesel coming into the continent because of what the Europeans see as unfair subsidies the US gives to American biodiesel producers.

In response, the National Biodiesel Board’s Vice President of Federal Affairs, Manning Feraci, issued this statement yesterday:

“Today’s meeting is just one step in the ongoing legal process that will ultimately conclude later this year. As we have since these investigations were initiated in June of last year, the NBB will continue to use all legal options at its disposal to defend the interests of the U.S. biodiesel industry.

“Ultimately, before the case is finally resolved, the EC must determine whether U.S. competition is harming the European biodiesel industry before duties of any kind can be imposed. The facts in this case remain the same. The European industry is not being harmed by U.S. competition. In fact, the EC has before it data demonstrating that key European biodiesel companies are doing quite well. And for those companies that are faring poorly, it is factors not related to U.S competition – bad business models; high feedstock costs; and detrimental changes in EU member state policy – that are the cause. As the case proceeds, the NBB will continue to highlight this fundamental shortcoming in the European Biodiesel Board’s complaint.”

The final 2008 ethanol production and demand numbers are in and despite industry issues towards the end of the year, it was another record with both numbers up over 40 percent from 2007.

According to year-end figures released by the Energy Information Administration, American ethanol facilities produced more than 9.2 billion gallons of ethanol in 2008, up from some 6.5 billion gallons in 2007. On average, the U.S. ethanol industry produced 601,000 barrels per day (b/d), compared to 423,000 in 2007.

Ethanol demand continued to outpace production last year. According to the Renewable Fuels Association, demand averaged 630,000 b/d in 2008 or more than 9.5 billion gallons total. By comparison, ethanol demand in 2007 averaged 446,000 b/d.

“Despite the economic challenges facing this country and this industry in 2008, America’s ethanol producers still managed to meet the goals put before them and build the necessary foundation for a strong and robust future for renewable fuels,” said RFA President Bob Dinneen. “While challenges will still persist through 2009, this industry is poised to help lead this nation out of its economic downturn and provide the kind of economic, energy, and environmental stability that is desperately needed.”

There are several new alternative energy grants available for wind energy and biomass energy. The first grant, “20% Wind by 2030: Overcoming the Challenges” was posted on February 27, 2009 and closes on March 5, 2009. The government is posed to award up to 99 grants for a total of $8 million. You can get more information and apply online at www07.grants.gov/ or click here. The grant application number is DE-PS36-09GO99009.

For those of you working on biomass projects, there is a new grant available, “Biomass Research and Development Initiative” that is aimed at funding biomass projects that will bring technology to market at a competitive price and replace fossil fuels. The grant will award up to $25 million and applications are due on June 1, 2009. You can get more grant details at  www07.grants.gov/ or click here.  The grant application number is DE-PS36-09GO99016.

There are new grants posted every day as the alternative energy industry has been targeted for funds through the recent stimulus packages so check the site often. We’ll also bring you updates as new energy grants are posted.

A new study released today concludes that increasing the blend of ethanol in the U.S. gasoline supply from 10 to 15 percent could boost job creation and economic growth.

The study was commissioned by Growth Energy and conducted by researchers from North Dakota State University (NDSU). Nancy Hodur, NDSU researcher with the Department of Agribusiness and Applied Economics, says there would be substantial economic and employment impacts associated with the expansion of the ethanol industry if the blend rate were increased.

“We estimated that annual direct economic impacts would be $9.6 billion and the total direct and secondary impacts would be $24.4 billion and that level of economic activity would support 136,000 jobs,” said Hodur. Those impacts were based on the multiplier effect of adding another 60 ethanol plants nationwide.

Former Congressman and Growth Energy board member Jim Nussle says the study supports the economic need to increase the ethanol blend level, which he says was arbitrarily set 30 years ago at ten percent. “These figures really are dramatic and they prove that when we want we can create these desperately needed jobs,” said Nussle. “The federal government can act right now to increase the amount of ethanol blends in the nation’s fuel supply without having to dip into another stimulus package or create another bill.”

Nussle says the Environmental Protection Agency has the authority to increase the blend level through the rule-making process and while it could theoretically be done quickly the former congressman refused to speculate on how long it might take EPA to take such an action.

Listen to the Growth Energy press conference announcing the study here: 3-4-09-GE-presser.mp3

Podcast: Play in new window | Download (10.3MB)

As I told you a couple of weeks ago, the European Union for some time has been threatening to slap tariffs on American biodiesel coming into Europe… barring some deal today to derail the measures.

Well, this story from Reuters says that there was no last-minute reprieve and the duties are set to hit on March 13th:

The EU firms accuse U.S. producers of being involved in a “splash and dash” scheme, whereby they import cheaper biodiesel from countries such as Brazil and add less than 5 percent of U.S. diesel. The producers then qualify for a subsidy from Washington before exporting it to Europe.

“This simply is not the case,” Feraci said, noting some European producers are doing well, while others have been hurt by factors unrelated to U.S. imports, he said.

You and I both know this is not the last we’ll hear about this. Stay tuned…

Knowledge is power, and the folks at Garbrook Knowledge Resources are offering a powerful resource in an upcoming Webinar on how to turn algae into biodiesel.

The Advanced Biofuels Resource… what Garbrook bills as the industry’s most comprehensive information source on biofuels… will be offering the “Algae for Biofuels: Current Potential for Commercial Development” Webinar this coming Wednesday, March 11th from 11:00 AM – 12:30 PM EST to tackle some of the challenges surrounding algae as a biodiesel feedstock:

Topics Covered:

* Industry update including major players and partnerships
* Outline of commercialization efforts and approaches
* Progress in commercial algae cultivation, harvesting, and process technologies
* Opportunities for biofuels and co-products derived from algae
* Ongoing algae research and development
* Scientific and technical hurdles that must be overcome for algae biofuel production

It’s not free, but the $149 you’ll pay could return some big dividends in this growing field of a growing green fuel. Check it out by clicking here.

Ethanol debuted on the fashion runway last year…as a pair of jeans. Yes, jeans. Fashion meets environment with these stylish jeans that are made from cotton grown with less pesticides and sold in recycled packaging.

The jeans are branded “ethanol” to the hilt with the buttons sporting a “e,” and an ethanol patch on the back. But possibly the best feature is the bag of corn that comes with each pair.

I’m  not sure where to find these jeans and I couldn’t find a website for the manufacturer, but this pair was purchased at a Sam’s Club. I did however find a youtube video with Jordan Sparks and Jessica Lucas promoting the brand.

The label promotes www.allianceforclimateprotection.com which says that, “A portion of proceeds from the sale of the jeans goes to campaigns to help support environmental programs.” When I went to the site there is no information about the clothing line nor the programs that are supported through the purchase of the jeans. I tried contacting the organization but as of press time, haven’t heard anything back.

I guess ethanol is not just for cars anymore.

Blodgett Oil Company recently entered a competition to see if their painted “E85 Tractor” entry could win as the “sexiest tractor” at a local Red Cross Tractor Races Fundraiser.

As a Red Cross Tractor sponsor, Blodgett Oil paid $100 and received a cut-out of a plain plywood tractor to decorate in any way they wished. “We chose to promote our E85 product. Our maintenance guy Carl, did a wonderful job!” said Nancy Beckwith, vice president of Blodgett Oil Company. The company owns numerous E85 stations in Michigan.

About twenty tractors were entered in the competition. During the race, the tractors were moved along a board game like space in a large banquet room, with the attendee’s betting on who will win the race. Whoever had the most bets, won the race. Attendees also betted on the “Sexiest Tractor”.

Unfortunately, Blodgett Oil’s tractor did not win this year’s “Sexiest Tractor” award, but Beckwith said that her company had a blast with our E85 Ethanol tractor appearance which at one time was announced as “the Corn Mobile”.

The “Top Money Winner” tractor was: Primerica Financial Services, owned by Art and Nancy McClintic of Alma, Michigan and voted “Sexiest Tractor” for the second year in a row was: Alma Pontiac Buick GMC, Alma, Michigan.

All money raised was donated to the local Red Cross.

Wind energy celebrated its biggest year in 2008 with 8,000 megawatts being installed–that’s a lot of wind. I wanted to learn more about the industry so I caught up with Susan Williams Sloan, the Outreach Manager for the American Wind Energy Association (AWEA) last week during Commodity Classic. . 

“2008 really was a banner year for the industry,” said Sloan. She anticipates that 2009 won’t be as big of a year due to the economic situation but does see a bright future going forward citing the provisions in the stimulus package.  

Last year, the industry was growing so rapidly that it could take months to have wind turbines delivered, but this year is different. There is a large inventory of wind turbines available. “The Good News is that there are turbines available for those with projects that are ready to move forward,” said Sloan. 

A big challenge for AWEA is building a transmission grid that can help move move wind power from the windy areas to the load centers where people need more electricity. “We must figure out the political issues surrounding moving wind,” said Sloan, and assured me that  AWEA will work diligently to ensure an effective transmission grid is developed.

Listen to my interview with Susan here get the full update on the wind industry’s efforts. cc-09-joanna-wind-energy.mp3

Podcast: Play in new window | Download (3.0MB)

Manhattan, KS looked more like Manhattan, NY yesterday as cars were lined up to get E85 for just 85 cents a gallon and E10 for only a dollar, plus a free lunch at the Manhattan Farmers Cooperative Association.

Hundreds of hot dogs and thousands of gallons of ethanol-blended fuel were given away to Kansas State college students at the “Wildcat Free-For-All,” sponsored by the Renewable Fuels Association and the Kansas Corn Commission to launch the Flex-Fuel Challenge, an online national contest to promote E85.

“We were very happy with the event. Many students learned of the opportunity via Facebook and email, and this is exactly what this contest is about, educating students where they spend there time – online,” reported Robert White, Director of Market Development for the RFA.

The challenge encourages them to produce a short video, take a photo, or even write a song about creative ideas on renewable energy that will impact future generations. The overall winner will receive a MacBook Air laptop and each week there will be drawings for portable Passport™ hard drives.

Find out more at e85challenge.com.

Vice President Joe Biden might be known a bit for saying some crazy things, but his latest pronouncement… that some green jobs could pay as much as $50 an hour (see this CNN story)… is some good news to the ears of a nation that is trying to shake the unemployment blues while moving to a renewable energy economy.

CBS News reports that Biden recently held a “Middle Class Task Force” meeting in Philadelphia:

Biden’s let’s-help-out-the-middle-class suggestion is to create more green jobs. A 33-page report his task force released on Friday says “green jobs have the potential to be quality, family-sustaining jobs that also help to improve our environment” that pay more, are more likely to be unionized, and can’t be easily off-shored.

Suggested occupations include: electricians who install solar panels; plumbers who install solar water heaters; farmers engaged in organic agriculture and some bio-fuel production; and construction workers who build energy-efficient green buildings, wind power farms, solar farms and wave energy farms.

If what Biden said does come true, it would certainly be a boost for the economy and the green sector.

As you might remember from our multiple posts back in October and December , Farm Foundation has been hosting a series of meetings that add some important talk about the issues surrounding biofuels (just search “Farm Foundation” on this Web site to get an idea of some of the discussion). At the end of this month, the organization will be hosting another conference in that same vein.

The latest “Transition to a Bioeconomy” conference will be March 30-31 at the Westin Washington D.C. City Center Hotel:

“The continued development of the biofuels and renewable energy industries is creating energy, investment and trade policy challenges for nations worldwide,” says Farm Foundation President Neil Conklin. “Most bioenergy-related policies have a domestic, rather than a global orientation. Yet the impacts of those policies are often global.

Organized by Farm Foundation, USDA Office of Energy Policy and New Uses and USDA Economic Research Service, this conference will examine:
Global Energy Markets
Global Impacts of Biofuels Policies
Industry Perspectives on the Future of Energy and Public Policy
Trade in Energy Technologies

I’ve been able to attend a couple of these Farm Foundation events, and I can tell you that it is well worth the price of admission for the thought-provoking conversation that brings all sides to the table. You can even save some money if you sign-up by March 10th. If you can, I strongly suggest you make the trip to DC to take in this one. Click here for registration information.