Domestic Fuel

A new Congressional Budget Office report shows other factors actually had a bigger impact on food prices last year than ethanol did and that ethanol is reducing greenhouse gas emissions.

Most media reports have focused on the findings in the report, “The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions,” that from April 2007 to April 2008, the rise in the price of corn resulting from expanded production of ethanol contributed between 0.5 and 0.8 percentage points of the 5.1 percent increase in food prices measured by the consumer price index (CPI).

However, the next sentence in the report summary states that over the same period, “certain other factors—for example, higher energy costs—had a greater effect on food prices than did the use of ethanol as a motor fuel.”

In addition, the report notes that ethanol’s effect on future food price inflation is “uncertain because the forces determining that impact move in opposite directions.”

Federal mandates now in place require additional use of ethanol in the future, which would continue to put upward pressure on prices. In contrast, increases in the supply of corn from cultivating more cropland, increasing crop yields, or improving the technology for making ethanol from corn or other feedstocks (raw materials) would tend to lower food prices.

Regarding the emissions side of the equation, the report states that “in the short run, the production, distribution, and consumption of ethanol will create about 20 percent fewer greenhouse gas emissions than the equivalent processes for gasoline. For 2008, such a finding translates into a reduction of about 14 million metric tons of carbon dioxide and equivalent gases (a standard measure of greenhouse-gas emissions).”

A leading biodiesel company north of the border has teamed up with an American agri-business giant to go in to the green fuel business together.

A press release from the Canadian Bioenergy Corporation says it will work with ADM to build and run a 70 million-gallon-a-year biodiesel plant. The joint venture will make biodiesel from canola crushed at ADM’s crushing facility at Lloydminster, Alberta.

Both companies are doing a feasibility study to figure out the best way to start and run the plant.

Biodiesel producers not quite able to pass the newest quality standard… ASTM D 6751, which now includes a Cold Soak Filtration Test (CFST)… will have some extra time when they can still claim the Internal Revenue Service’s dollar-per-gallon tax credit. Those not meeting the new standard were supposed to lose the credit as of April 1st, but that’s been rolled back to October 1st.

Now, the CFST was developed to help cut down on fuel that has a tendency to turn to solid and clog fuel filters. This story from Biodiesel Magazine points out the extension puts the industry in an interesting position:

For producers having trouble passing the test, it is good news for them that they can continue to collect the credit while modifying their process. However, buyers are interested in purchasing B100 that meets the latest version of D 6751, which means purchasing biodiesel that passes the CSFT.

The version of the cold soak method in existence today, which many people in the industry say is flawed, will be replaced later this year by a new, more feedstock-equal test method.

As you might remember from my post earlier this week, the newest ASTM quality standard… with the new Cold Soak Filtration Test… just passed out of the group’s committee of standards review process and received an official number – ASTM D 7501.

Ethanol emergency response training will be offered in eight Missouri and Illinois cities through May 14. This training group is offered by Transporattion Community Awareness and Emergency Response, a partnership of chemical and transportation industries that help communities with hazardous materials transportation and emergency preparedness.

Since ethanol is a prevalent fuel in the Midwest, first responders, including EPA on-scene coordinators, need to be prepared to respond to ethanol releases and fires. Fires involving ethanol or ethanol gasoline mixtures pose different hazards than traditional petroleum-based fires. Ethanol is water soluble and can burn with a flame so clear that it can be difficult to see.

The training will be offered in the cities of Rolla, Springfield, Carrollton, St. Joseph, Jefferson City, Laddonia, and Carthage in Missouri, and Sauget, Ill.

Ten EPA Region 7 on-scene coordinators will assist with the training sessions and the Mobile Command Post will be deployed to most of the training sites. The Missouri Department of Natural Resources and local fire and police departments are also participating. Several railroad companies are providing classroom instruction and hands-on training with railcars, including ethanol tank cars.

Registration details and logistical information about the eight training sessions can be obtained at www.transcaer.com/events.aspx.

Just when I thought there was no creative way to present a plan to address America’s energy issues, I read “Freedom From Oil,” by David Sandalow. Two words immediately come to mind to sum up the book. Clever. Brilliant. It is no surprise that Sandalow has recently been nominated by President Obama to serve as DOE assistant secretary for Policy and International Affairs. It appears that the president has adopted a few policy considerations from this book.

“Freedom From Oil” begins with a memo from the “President of the United States” to his heads of various departments letting them know that in one month he will be giving a speech on oil dependence. During this speech, the memo states, “I hope to present the nation with a plan for ending our dependence on oil.” The memo continues with a call to action and deliverable materials and the various aspects that will affect this plan. The president ends by asking his team to keep this quote in mind when responding, “Make no small plans, for they have no power to stir the soul.”

From there, the departments then submit memos back to the president who then summarizes the “pros and cons” of each issue. In addition, there are articles of interest included with the memos that highlight people who are working day-to-day to help solve America’s energy issues. For those of you who are fans of the IndyCar Series, one article focuses on its use of 100 percent fuel-grade ethanol.

In the end, a strategic plan is offered and the finale: the president’s national address regarding the country’s dependence on oil. Sandalow presents ideas that many others have written about (because he says all ideas must be considered) and he offers new policies as well. I’ve not read a more balanced presentation of the pros and cons of potential energy policies and solutions. “Freedom From Oil” is a must read.

To buy this book or any book I review, click here.

There are many creative and fun events on the horizon as we approach Earth Day. Those of you in California may want to check out Wine and Shine 2009, a  solar tour and wine tasting that features local wines and three innovative solar energy systems that are helping three featured wineries save hundreds of dollars in energy costs.

The event is Friday, April 24 from 10:00 am – 2:00 pm and features J. Lohr Vineyards & Wines, Eos Estate Winery and Clautiere Vineyard in Paso Robles, CA. Recently, agriculture has been unfairly vilified for its lack of environmental stewardship and the participating wineries will be showcasing both their agricultural environmental initiatives along with their green business practices.

The event is sponsored in part by Conergy, an energy company that designs, manufactures, installs, and finances solar photovoltaic solutions for businesses and homeowners. There has been a significant increase in development and demand for solar energy through the federal economic stimulus package and the California Solar Initiative. These programs combined have the potential to off-set the costs of installing solar energy technologies between 80-90 percent.

For more information about Wine and Shine 2009 or to reserve your spot, email RSVP@wineandshinetour.org.

A new international study indicates that small-scale bioenergy plants can play a significant role in rural development for poorer nations.

The new report, “Small Scale Bioenergy Initiatives: Brief Description and Preliminary Lessons on Livelihood Impacts from Case Studies in Latin America, Asia and Africa,” was published jointly by the United Nation’s Food and Agriculture Organization (FAO) and the UK’s Department for International Development. The study covers 15 different “start-up” bioenergy projects from 12 countries in Latin America, Africa and Asia involving a diverse array of technologies.

“The furious debate around bioenergy has largely concerned liquid fuels used for transport,” said Oliver Dubois, a bioenergy expert in FAO’s Natural Resources Department. “Yet more than 80 percent of bioenergy usage in the world involves other sources, mainly wood, which are used for basic household cooking and heating in poor areas of the world.”

According to FAO, concern over the impact these transportation biofuels will have on the environment, water resources and food security has obscured many of the positive benefits for poor rural people. The study shows a number of significant benefits of using new technologies for biomass-based rural energy, such as the creation of useful by-products such as affordable fertilizer from biogas production, the possibility of simultaneously producing food and fuel through intercropping, and the creation of new financial capital with growth cycles by making use of marginal land.

An Illinois biodiesel plant has made some upgrades and can now use a wider variety of feedstocks.

Hoosier Ag Today reports that the improvements made by Renewable Energy Group to the 45-million-gallon-a-year Blackhawk Biofuels plant in Danville, Ill., will be able to turn more fats and oils, such as used cooking grease, into biodiesel:

“These upgrades enhance local production of clean-burning renewable fuel, support 28 green-collar employees and offer petroleum distributors additional choices for high quality biodiesel,” explained Ron Mapes, chairman of the Blackhawk Biofuels, LLC.

The $12 million project included the multiple feedstock pretreatment and production upgrades, enhanced laboratory and testing facilities, and improvements for storage and logistics capabilities. The construction project employed 68 full-time workers.

Officials are proud to say that the upgrade and startup were on schedule, cranking out the green fuel made from a high free fatty acid feedstock within just a few days of installation… exceeding all ASTM quality specifications. The addition of the new feedstocks will help keep the facility in the black.

The new Cold Soak Filtration Test method for B100 biodiesel finally has an official number.

This story from Biodiesel Magazine says the ASTM’s Committee of Standards has given the method the an official number – ASTM D 7501, due to be published later this month:

The CSFT method currently in effect was developed as a result of the Minnesota experience in 2005-2006 of statewide filter cloggings shortly after a state B2 mandate was triggered. The CSFT was developed as an attempt to keep contaminated biodiesel – or biodiesel laden with sterol glucosides, mono and di glycerides, metals, soaps, water – out of the marketplace. Those contaminants can react in such a way to cause a “snow-globe” effect wherein precipitates fall out of solution from the fuel at temperatures above the cloud point. However, the precise mechanisms behind how the contaminants react with one another to cause precipitate formation above the cloud point are still largely unknown.

The new method takes into account the changes in states of matter B100 goes through during the chill. If the test sample becomes solid during cool down, it will be given a four-hour warm up time instead of two hours. In addition, samples will be warmed to 25 degrees C, as opposed to just warming on the bench. The article points out that the CFST was designed for soy biodiesel.

Amid concerns and criticisms of the near-term viability of cellulosic ethanol, VIASPACE Inc. has announced plans to expand production of its proprietary grass feedstock Giant King Grass. The Company’s goal is to supply nonfood feedstocks for the production of cellulosic ethanol, methanol and “green gasoline.”

The first major Giant King Grass crop was planted in October 2008 in Guangdong Province China and to date, is demonstrating survivability in all weather conditions. The perennial grass is propagated by seedling rather than seeds and each plant can generate between five to 10 new seedlings. Another advantage of this plant is that is can be harvested four times a year. VIASPACE is negotiating to lease more land and anticipates to have 300 acres growing by September.

Several petroleum companies have made recent plays in the biofuels market including BP’s recent announcement that it would build a cellulosic plant in Florida using grass as the primary feedstock. In addition, Shell has significant investments in cellulosic ethanol produced from switchgrass.

Despite uncertainty, fast-tracking cellulosic ethanol to market is gaining political support as research demonstrates its starring role in the recently proposed low-carbon fuel standard economy.

Carl Kukkonen, VIASPACE’s Chief Executive stated in a company release, “We see this renewable energy segment of our business as an opportunity to participate in the expected growth of cellulosic biofuels as an environmentally friendly, non-petroleum source of energy.”

In 2010, an E85 Bentley will begin production in North America. The Continental GT will be introduced at the Geneva motor show as a production model. Its 630-hp turbocharged W12 will make it the fastest and most-powerful Bentley ever. The vehicle will exceed 200 mph.

The Supersports will be the first of Bentley’s to be E85 compatible. “The changes to make the Supersports run on E85 should not be underestimated,” said Uli Eichhorn, Bentley chief engineer. “As well as re-engineering the fuel system to cope with the corrosive ethanol, all the electronic subsystems had to be reprogrammed and revalidated.”

The main change to the engine to increase power above 600 hp is extra boost from the twin turbos, whose airflow is eased by 10 percent larger intercoolers. Bentley quotes a 0-to-60-mph time of 3.7 seconds and 50 to 70 mph in 2.1 seconds.

EPA recently held a ceremony and awarded Missouri Joint Municipal Electric Utility Commission (MJMEUC) with an ENERGY STAR Combined Heat and Power (CHP) Award. This award was in recognition for their reducing energy consumption and greenhouse gas emissions at the POET Biorefining – Laddonia, Mo., ethanol plant.

“EPA is proud to recognize the outstanding pollution reduction and energy efficiency innovations of this project by presenting this award. The heat recovery system is contributing to a cleaner and healthier environment,” said Acting Regional Administrator William Rice.

By using a natural gas-fired turbine, about 26 percent less fuel is used at the Laddonia plant. This equates to a reduction in carbon dioxide emissions by an estimated 31,000 tons per year.

POET CEO Jeff Broin said, “We want to thank the Missouri Joint Municipal Electric Utility Commission for helping POET in its mission to further reduce the environmental impacts of transportation fuel. As this partnership demonstrates, we are committed to making the production of ethanol even more efficient.”

Valero may be in the ethanol business now with its purchase of eight former VeraSun plants, but oil is still the company’s first priority. That’s why they are not backing the ethanol industry’s request for an increase in the ethanol blend level to 15 percent.

According to an article in Ethanol Producer Magazine, Valero maintains its membership in the National Petrochemical & Refiners Association (NPRA) and stands behind the organization’s position against raising the ethanol blend level. They have not yet joined any of the ethanol organizations as a producer member, even though they now rank as the nation’s third largest ethanol producer.

Bill Day, director of media relations for Valero, told the magazine that “what we said about ethanol before we were an ethanol producer remains true: ethanol is an industry that is relying on government subsidies, a government renewable fuel mandate, and tariffs on imported ethanol.” However, he says that they recognize that ethanol is going to be an important part of the fuel mix in the country “and so as long as we’re required to buy ethanol, we might as well make it.”

Valero has also made some corn farmers unhappy by announcing it will not honor the high-priced corn contracts entered into by bankrupt Verasun. The Argus Leader reports that farmers in South Dakota were not surprised, but were disappointed by the decision. Still, they are happy that Valero is getting the plants back on line and fully operational.

The ethanol industry has grown tremendously in the last 25 years – and so has the International Fuel Ethanol Workshop and Expo (FEW).

“The first event in 1985 had four tabletop exhibits and 36 people,” according to Mike Bryan, CEO of BBI International, which organizes the FEW. Last year, FEW 2008 featured over 4,000 attendees and nearly 1,000 exhibits. It is the world’s largest, longest-running ethanol conference.

This year, FEW has joined with the 2009 International Distillers Grains Conference & Trade Show and the Advanced Biofuels Workshop, to give industry professionals the ability to attend all three shows in one trip. All three events will be held at the Colorado Convention Center in Denver, with the Distillers Grains Conference kicking it off on June 14-15. The Advance Biofuels Workshop will be held on June 15 and the 2009 FEW on June 15-18.

Registration information and details for all three events, which are all organized by BBI International, can be found on-line here.

The Midwest has plenty of ethanol and biodiesel… the big population centers in the Eastern United States needs those renewable fuels. You’d think it would be a match made in heaven, but the lack of infrastructure to move those biofuels has been a problem, adding extra transportation costs. But a new piece of legislation looks to rectify that.

According to this story from Midwest AGNet, a bill sponsored by U.S. Senators Tom Harkin (D-IA), John Thune (R-SD) and Tim Johnson (D-SD) looks to give loan guarantees for the construction of renewable fuel pipeline projects:

“We must seize control of our energy future and take major steps towards the use of clean, renewable home-grown sources of energy,” said Harkin. “Promoting the planning and development of projects that transport renewable fuels efficiently and inexpensively helps enlarge the market for biofuels like ethanol, reduces our dependence on foreign fuels and will provide good construction jobs.”

“Many experts believe that a pipeline network to transport biofuels is necessary to achieve the aggressive renewable fuel requirements. But limited transportation options of truck, rail and barge will only get us so far. Pipelines are necessary to get this fuel moving to where the people are. These loan guarantees will spur pipeline development and help create new jobs and lower our dependence on foreign sources of energy,” said Johnson.

The importance of a pipeline is not just the lower costs of transportation. The article goes on to point out that they have 30 percent less emissions than railcars and 87 percent less than trucks. Plus, it’s just a safer way to get fuel from point A to point B. Finally, construction of renewable fuel pipelines could create up to 25,000 jobs nationwide.