Domestic Fuel

“We must leave oil before oil leaves us.” Wise words from Brian Jennings, the executive director of the American Coalition for Ethanol during his general session presentation at the 22nd Ethanol Conference & Trade Show. We need to progress from short-term day to day crisis management to thinking long-term strategy, continued. Jennings. “We need to unite.”

A major theme of the conference delivered by both Brian as well as the other speakers and attendees was the need for the ethanol industry to unit. “We need to focus on things we have in common rather than focusing on differences. We can get more done. Only we can defeat ourselves,” said Jennings.

“We put way too much emphasis on who’s better. Who has better ideas. We need to put less emphasis on the me and put more emphasis on doing the work.”

Jennings also spoke about how the industry is really trying to make gasoline the alternative fuel, but that the industry needed political courage to change the status quo. He also encouraged the industry that the days of profitability are coming back, but if the blend wall isn’t increased it could be devastating– there is more capacity than demand. “We have to focus with laser like attention to creating more demand for ethanol.”

In closing, Jennings said, “We need to renew, unite and have the determination to succeed.” Well said.

You can see photos from the event in our Flicker photo album.

The U.S. Navy is working with Biodiesel Industries and aerospace and defense company Aerojet to develop a high-tech, remote-controlled, automated, portable biodiesel production unit.

This story from Biodiesel Magazine says the project at the Naval Facilities Engineering Service Center in Port Hueneme, Calif. will called ARIES… Automated, Real-time, Remote, Integrated Energy System:

With the resources and modus operandi of the U.S. Navy, along with Biodiesel Industries’ 10-year biodiesel production database, ARIES utilizes Aerojet’s systems control technologies to provide real-time sensing and management of important processing and chemical parameters, resulting in automation of the entire process. Biodiesel Industries stated that this enhances yields, makes quality control more reliable, and assures safety of personnel. This remote sensing also allows for monitoring and operation from one control center for multiple biodiesel processing centers located anywhere in the world.

Russell Teall, president and founder of Biodiesel Industries, said Aerojet and the Navy are perfect partners in this project. “For the past 15 years we’ve been developing proprietary technology for modular multi-feedstock biodiesel production. Combining the [Naval Facilities Engineering Service Center’s] specialization in energy and environmental systems with Aerojet’s history of advanced systems controls, enabled the implementation and first public demonstration of Biodiesel Industries’ ARIES platform. As the world’s largest consumer of diesel fuel, the implications for the Navy and the [Department of Defense] are clear.”

Officials expect that if the project works for the Navy, there will be benefits for the commercial sector.

The Iowa Renewable Fuels Association has teamed up with legendary radio station WHO in Des Moines to power its Crystal Studio at the Iowa State Fair from August 13-23 using B20 biodiesel.

This IRFA press release says the diesel generators for the studio have been running on bodiesel during the fair since 2006:

“IRFA is proud to help continue the biodiesel tradition of WHO radio and the Iowa State Fair,” said Monte Shaw, Executive Director of IRFA. “With the largest farm audience in Iowa, WHO and the Iowa State Fair are the perfect partners to demonstrate the power and performance of Iowa-produced B20. As farmers begin the process of ordering fuel for the harvest, we want to encourage them to buy biodiesel, a clean, reliable alternative for the fall harvest season and beyond.”

IRFA is also airing “buy biodiesel” ads on WHO during the fair, and the green energy group’s members will also conduct on-air interviews to educate the public about the benefits of biodiesel.

BP and Martek Biosciences Corporation have signed a deal to develop an advanced biodiesel from sugars.

The agreement will use Martek’s ability to work with microbes and BP’s large-scale capabilites:

“Martek is pleased to partner with BP’s Alternative Energy team, to combine our unique algae-based technologies and intellectual property for the creation of sustainable and affordable technology for microbial biofuel production,” said Steve Dubin, Martek CEO. “BP’s global leadership and commitment to alternative energy solutions complements Martek’s own commitment to responsible and sustainable products and production.”

Philip New added, “This technology is also a perfect fit with our other strategic choices for biofuels, all based on sustainable feedstocks and fermentation to produce advanced biofuels. It is part of our approach of integrating sugar cane and lignocellulosic biofuels with advanced technologies to produce products with a wide range of uses.”

BP is contributing $10 million in capital to the project.

Corn growers and the ethanol industry are teaming up to bring more choices to the consumer at the fuel pump.

In this edition of “The Ethanol Report” we hear from representatives of the National Corn Growers Association, the American Coalition for Ethanol and the Renewable Fuels Association about the “Blend Your Own Ethanol” campaign announced this week at the 22nd Ethanol Conference & Trade Show in Milwaukee. The goal of BYOethanol is to install 5,000 blender pumps nationwide over the next three years.

You can read more about it here or see a video and photos from the press conference announcing the partnership here.

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After four NBA Championships, Shaquille O’Neal is pretty much a household word. Now he wants a new moniker to represent his investment in what could become the next big household appliance – the E‐Fuel MicroFueler™ that makes ethanol from organic waste or leftover alcoholic beverages.

Sometimes known as the “Big Diesel,” Shaq said during a demonstration of the microfueler in California last week that he now wants to be called “Big Ethanol.”

“They showed me how it works, and it was great,” said Shaq, who is having a microfueler installed in his own house.

O’Neal is one of the latest investors in San Diego-based GreenHouse Energy, a San Diego based alternative green energy company. GreenHouse has partnered with several companies, including Karl Strauss Brewing Company, Gordon Biersch Brewing Company and Sunny Delight, to convert 29,000 tons of liquid waste into ethanol using the MicroFueler process.

Unless you haven’t been reading our coverage of the 22nd Ethanol Conference & Trade Show hosted by the American Coalition for Ethanol, you’ve heard by now the news regarding the new blender pump program called BYOethanol. Pronounced “bio,” Blend Your Own Ethanol is a joint campaign between ACE, RFA and NCGA to bring 5,000 blender pumps online throughout the United States in the next three years.

You can learn more about this unprecedented program in my last post. You can also watch the announcement unfold in my video. Interested in seeing what else you missed? Check out our Flickr photo album.

Despite a late planting season, farmers are still expected to harvest the second biggest corn crop on record and U.S. corn supplies are projected at a record 14.5 billion bushels.

According to the crop report released this morning, USDA is forecasting a 12.8 billion bushel corn crop – just two percent less than the record 2007 crop and five percent more than last year. USDA’s World Agricultural Supply and Demand report estimates corn use for 2009/10 will also be higher. “Food, seed, and industrial use is raised 100 million bushels with higher expected use for ethanol supported by favorable ethanol producer returns and strong incentives for ethanol blending,” USDA predicts. They also added another 100 million bushels for feed and residual use and another 150 million in exports.

“We’re proud of our growers and excited to see these estimates because they reflect a lot of hard work and represent the high production many of us are seeing in our fields,” said National Corn Growers Association President Bob Dickey, a grower in Laurel, Neb. “This is all-around a great accomplishment by our farmers and good news for our markets and, ultimately, American consumers.”

Renewable Fuels Association President Bob Dinneen says this proves American farmers are able to provide food, feed, and fuel for the nation. “Technological advancements in both the seed and in the field are allowing farmers to produce more per acre, while using fewer inputs such as fertilizer and diesel fuel. There can be no doubt that we are fully capable of meeting the food and feed obligations we have to the world while simultaneously helping break our addiction to foreign oil,” said Dinneen.

Tom Buis, CEO of Growth Energy, says the continued increases in both corn and soybean production contradicts the theory of indirect land use change. “Based on these reports, it’s silly to still think that the demand for corn in the U.S. to make ethanol would displace land used to plant soybeans and in turn cause deforestation in other parts of the world,” Buis said.

Analyst Peter Georgantones of the Minnesota-based Investment Trading Services thinks the 12.8 billion bushel corn crop forecast could get even bigger. “I actually think the corn yield is going to continue to grow unless we get an early frost,” he said. “I could see 2-3 bushels more put on this corn crop pretty easily.” USDA is predicting a yield of 159.5 bushels per acre, the second highest on record.

For more than a year, officials at the New North, Inc., a regional collaboration effort focused on promoting regional cooperation and economic development in an 18-county region in Northeast Wisconsin have explored the economic development opportunities surrounding cellulosic ethanol production in Northeast Wisconsin. Earlier this week New North announced the results of phase one of what will be a multifaceted project aimed at attracting large-scale cellulosic ethanol production to the region.

Phase one of the study, which is available for download provides detailed analysis of the current availability of forest products in the region. Phase two, with an expected release later this fall, will address behavioral aspects such as production levels and harvest techniques, as well as existing contracts and pricing strategies.

“As Wisconsin moves forward with large scale commercialization and production of cellulosic ethanol, we’re going to be prepared to attract development by promoting our resources and highlighting Northeast Wisconsin’s assets,” said Jerry Murphy, Executive Director of the New North, Inc. “This study will show investors that the New North has the available feedstocks and the skilled workforce necessary for cellulosic ethanol production, and hopefully whets the appetite of companies looking for a site to make an investment.”

From left to right: Ron Lamberty, ACE; Darrin Ihnen, NCGA; and Robert White, RFA

The 22nd Ethanol Conference & Trade Show in Milwaukee kicked off with an announcement of the largest ever consolidated effort to install 5,000 mid-level blend, or blender pumps, throughout the country: BYOethanol. I know many of you are envisioning bringing your own ethanol to the upcoming college football tailgate party, but it really means, Blend Your Own Ethanol.

The partnership with the American Coalition for Ethanol (ACE), Renewable Fuels Association (RFA) and the National Corn Growers Association (NCGA), is aimed at reaching retailers about the competitive benefits of installing blender pumps and the program will assist them with questions and issues they have including helping them with funding opportunities.

I spoke with Ron Lamberty and asked him to expand on how the program will work. “It’s a program that the American Coalition for Ethanol, and the Renewable Fuels Association are working on together taking the resources of the National Corn Growers Association and several state corn grower associations to get out and inform petroleum marketers about the value of being able to see E85 adn other blends of fuel using a blender pump.”

Robert White, Director of Market Development for RFA expanded on his answer by explaining, “We’re throwing the whole kitchen sink at this one. The strongest piece will be information dissemination.” As part of the program, they will be at petroleum trade shows and conferences, they will advertise in their magazines and will launch their own magazine aimed at retailers.

Darrin Ihnen, a corn farmer from South Dakota and incoming president of NCGA beginning October 1, 2009, noted that NCGA was involved in this ethanol industry program because they, “need to take it (promoting ethanol) to the next level beyond just the E15 campaign. This blender pump program shows that you can use a higher percentage of ethanol in our motor vehicles.”

This three-year program has an initial funding base of nearly $1 million dollars and is significantly funded by NCGA as well as by several state groups including the Kansas Corn Commission, the Kentucky Corn Promotion Council, the Missouri Corn Merchandising Council, the Nebraska Corn Board, and the South Dakota Corn Utilization Council.

The website, www.byoethanol.com, will launch in September but in the meantime, people can visit ACE’s or RFA’s website for more information. You can see pictures from the conference in our Flickr photo album.

Ethanol was welcomed with open arms at last week’s 69th annual Sturgis Motorcycle Rally in South Dakota where the Renewable Fuels Association partnered with the popular Buffalo Chip Campground and the Buffalo Chip Gazette to promote the use of ethanol blended fuels as a way to fight dependence on foreign oil.

RFA’s Robert White – an avid motorcycle enthusiast – wanted to personally thank the folks with Sturgis for the hospitality:

When I was looking for a way to reach out to small engine and motorcycle enthusiasts about ethanol, you were there. You were there to provide the perfect angle and approach to reach more than 500,000 consumers. You even provided a bonus, which was all of these individuals also own a car, truck or both.

You, along with the Legendary Buffalo Chip, allowed us to teach fellow riders about ethanol and provided a venue to hand out more than 5,000 ethanol koozies, 1,000 ethanol t-shirts and 10,000 information cards about the benefits of using a homegrown fuel. The key points being that it is a domestic product, it is cleaner-burning and it is made from renewable sources. We also had 25 static displays, which encouraged riders to, “Ride Safe, Fuel Right.” You also provided a backdrop to launch a Sturgis Photo Contest at www.e85challenge.com, where riders can win $1,000 for submitting their favorite rally photo. Each night, concert goers were able to see ethanol information on the jumbotrons during such acts as Toby Keith and Aerosmith.
Read the rest of this post…

General Motors’ latest heavy-duty diesel engine is set to burn a 20 percent biodiesel blend.

This post on PickupTrucks.com says the Duramax diesel V-8 will burn the green fuel to help it meet tough new emissions standards for 2010:

The so-called LML Duramax will be certified to run on biodiesel blends of up to B20, which is 80 percent ultra-low-sulfur diesel and 20 percent biodiesel, in GM’s 2011 model year 2500 and 3500 Silverado and Sierra pickups.

The move finally matches the B20 capability of the current 2007-09 Cummins 6.7-liter inline-six that powers the Dodge Ram HD lineup. The 2007 Dodge Ram 3500 was the only pickup in our last Heavy Duty Shootout that was able to burn B20. B20 is available at many truck stops today, but the current 2007-10 LMM Duramax and Ford’s 2008-10 6.4-liter Power Stroke V-8 are only approved for B5 biodiesel.

I always love to report when a fellow Iowan finds his way back home again.

After serving for the past six years as a research assistant for U.S. Sen. Chuck Grassley (R-IA) in Washington, D.C., Grant Menke has been hired as the Biofuels Manager for the Iowa Renewable Fuels Association (IRFA). This IRFA press release has details:

“It is certainly an honor to be joining the IRFA team,” said Menke. “The renewable fuels industry is crucial to Iowa’s economy, so as an Iowa farm boy, I am especially grateful and excited for the opportunity to serve in this role at IRFA.”

“IRFA is excited to have someone with Grant’s experience and work ethic joining our team,” stated IRFA Executive Director Monte Shaw. “This is a challenging time for biodiesel and ethanol producers and the addition of Grant will help us more quickly respond to the needs of our members.”

Congratulations, Grant!

Get your pooper-scoopers ready, because scientists in New Orleans are tapping into the products of some zoo animals’ backsides to move forward in green energy.

The New Orleans CityBusiness reports that researchers at Tulane University are trying to produce butanol from the waste of animals from the zoo:

A project to identify and genetically engineer bacteria to create butanol has been under way at a Tulane lab for just more than a year. The work is funded in part through a grant the U.S. Department of Energy awarded to the coalition of six Louisiana universities that comprise the Clean Power and Energy Research Consortium.

“It sounds — and is — humorous, the image of scientists running around the backside of a giraffe or hippo,” [Eric Smith, associate director of the Tulane Energy Institute] said, “but these animals evolved an efficient way of consuming cellulose long before we thought about it.”

The scientists say butanol contains significantly more energy per volume than ethanol, blends more readily with gasoline and can be distributed through existing pipelines.

A group of nine farmer-owned ethanol plants in the upper Midwest got together to purchase the former VeraSun plant in Janesville, Minnesota to make it an even ten.

Guardian Energy LLC, headquartered in Shakopee, Minnesota recently entered into an agreement to purchase the 100-million gallon plant acquired by AgStar Financial Services’ lending group through VeraSun Energy’s bankruptcy in March of 2009. Guardian Energy is a wholly owned subsidiary of Guardian Eagle Investments formed to own and operate this ethanol facility in Janesville. The group also founded Renewable Products Marketing Group, which will provide marketing services for the facility.

Renewable Products Marketing Group CEO Randy Hahn said, “Our group of farmer owned ethanol producers are very excited to see this purchase come together. We strongly believe that the value generated by converting our locally grown corn into renewable energy ought to stay here at home. We are committed to keeping this facility in the hands of local producers and farmers.”

AgStar has now found new owners for four of the six VeraSun plants they are representing. Another announcement is expected this week for a fifth plant in Dyersville, Iowa.