Domestic Fuel

The state fleet in South Dakota will soon be able to fuel up with E85 at three new dispensing units. The sites will be in Rapid City, Sioux Falls and Pierre to assist with the Department of Transportation.

About 1,270 of the state’s fleet are E85 compatible and purchased about 32,640 gallons of the clean, alternative fuel at private facilities in 2009. The new E85 sites should bring the gallons consumed up considerably.

“It makes it more convenient for state employees to get higher ethanol blends, and it should increase our use of those higher ethanol blends to an estimated 250,000 gallons per year,” said Governor Mike Rounds. “It also will benefit South Dakota’s ethanol producers and the farmers who grow the corn that’s used to make ethanol.”

Funding for the three ethanol tanks comes from a $280,000 energy grant that is part of the federal American Recovery and Reinvestment Act (ARRA) stimulus package.

There are 93 publicly accessed E85 and blender pump stations in the state of South Dakota.

An agreement between Mascoma Corporation and Chevron Technology Ventures will provide feedstock for conversion to cellulosic ethanol and by-products.

According to a press release, Mascoma has entered into a feedstock processing and lignin supply agreement with Chevron Technology Ventures (CTV), a division of Chevron U.S.A., Inc. Under terms of the agreement, CTV will provide various sources of lignocellulosic feedstock to Mascoma, which will then convert the feedstock to cellulosic ethanol producing lignin as a by-product.

The project will last for two years, and Mascoma is hopeful that the developed technology may be suitable for a wide variety of feedstocks.

A new U.S. based company called Alkol, has launched 1Hour Flex, a technology, according to the company, that allows any car to run on any amount of ethanol (E85) or gasoline. The conversion is reported to take less than one hour. The company has its roots based in Brazil where there are more flex-fuel vehicles on the road than anywhere else in the world. It’s this Brazilian history that the company says makes its complete system better than any other.

1Hour Flex has three components: an Electronic Converter that alters fuel injectors timing; Ignition Remapper which alters the spark plugs firing time; and a Cold Start System, which allows the engine to quickly start in cold days. Although the system could be installed at home, the company recommends having a certified technician install the technology.

Al Costa, CEO of Alkol said, “Flexing a car improperly can lead you to a number of problems, such as the engine failing when most needed; ridiculously high fuel consumption which basically nulls any savings you could get from the new fuel; fuel injectors clogging; even the fuel pump burning up, etc. That´s why we focus on installing whatever we know that the car will need to properly work without the customer having to do anything.”

1HourFlex is a complete system versus partial systems others offer and is fully automated. In addition, Alkol claims its ignition remapper system has no parallel and is a key component of the effectiveness of the technology. The company is slowly entering the U.S. market and is looking to a price of around $900 for the entire system including installation. The company is also looking at installing E85 pumps at the conversion locations.

New Energy Technologies, has successfully tested its MotionPower technology for generating electricity from the motion of cars and light trucks, in conjunction with a Burger King restaurant in Hillside, New Jersey. The durability field-test was conducted between September 3-7th and is one of the last steps needed prior to its commercial launch.

“It would be great to generate clean electricity by mechanically capturing the kinetic energy of the 100,000-plus cars that drive through our Hillside store alone each year,” stated entrepreneur and Burger King franchise owner, Mr. Drew Paterno. “If the MotionPower™ device works and does what we think it will do, we’d be interested in installing it in all our locations.”

New Energy’s MotionPower™ technology is designed to be installed in locations where hybrid, next-generation electrical, and conventional fuels-driven vehicles decelerate or stop, thus ensuring that vehicles are not ‘robbed’ of energy they would otherwise use to accelerate. Instead, MotionPower™ devices actually assist vehicles in slowing down, and in the process of doing so, capture the vehicles’ motion energy before it is lost as brake heat, and creatively convert that energy into clean ‘green’ electricity.

“We’ve had a favorable response to our MotionPower™ technology from the marketplace and from those who generated electricity by driving their cars over our device. We’re keen to aggressively commercialize our technology and have designed each phase of our testing to help move us towards this goal,” explained Mr. Meetesh Patel, Esq., President and CEO of New Energy Technologies, Inc.

Guardian News & Media recently announced their Global Cleantech 100 presented by the Guardian. Although this was the first year the list was created, more than 3,500 nominations were submitted. On this year’s list were 55 American based companies including Mountain View, California based Cobalt Biofuels. The list includes companies that are on the forefront of cleantech innovation. Cobalt Biofuels was recognized on the basis of its innovative technology for the production of biobutanol from non-food lignocellulosic material.

“It is a high honor to be included in the Global Cleantech 100 as it recognizes the rapid progress we have made toward our goal of commercializing biobutanol and the tremendous promise that biobutanol offers as a next generation biofuel,” said Rick Wilson, Ph.D., Chief Executive Officer of Cobalt Biofuels.

The 2009 list represents the collective opinion of hundreds of experts from cleantech innovation and venture capital companies in EMEA, North America, India and China, combined with the specific input of an expert panel of 35.

“The first ever Global Cleantech 100 shines a spotlight on which companies and which technology areas the global innovation community is most excited about from a commercial standpoint,” said Richard Youngman, managing partner at Cleantech Group.

Wind turbines could become more efficient and reliable, with some help from a $1-billion program that has just passed the U.S. House.

Rep. Paul Tonko (D-N.Y.) is the sponsor of the measure that the San Francisco Chronicle says aims to ensure that the biggest of the wind-generating turbines will be the most cost effective… important if wind energy is to hit the Energy Department’s prediction of wind providing 20 percent of U.S. electricity supplies by 2030:

Tonko said more research is needed to overcome the “many significant technical issues” facing wind-generated electricity.

Tonko said the initiative could leverage nanoscience research by businesses and research institutions that are working at the molecular level to create lighter and more durable materials.

The program would also look for ways to make the turbines’ gearboxes more reliable and develop cheaper assembly techniques for large components. Plus, it would work on how to overcome the issue of unpredictable winds.

Some trains in Iowa are burning locally produced biodiesel to see about the green fuel’s long-term viability in locomotives.

The Omaha World Herald reports that Cedar Rapids-based Iowa Interstate Railroad has been testing a B5 blend from Ames-based Renewable Energy Group and will increase it to B20 over the course of the eight-month test:

“Our company has been looking at biodiesel as an alternative to diesel fuel for some time,” said Dennis Miller, president and CEO of Iowa Interstate.

Miller said the trial could open the door for more than 600 railroads to add biodiesel as a fuel source.

Right now, no makers of large diesel locomotive engines approve of biodiesel because there’s little data on the effect it has on those types of engines. But if things work out, that will all change by the time this testing is done, and maybe the manufacturers will give the green light to the green fuel.

After venturing into ethanol, Valero Energy Corp. could be looking at getting into the biodiesel business.

As you might remember from this past spring, the petroleum company got into ethanol when it bought five ethanol plants from bankrupted Verasun (see Cindy’s post from April 1, 2009). It’s just a small mention at the end of this story on CNN Money, but this short phrase could be an indication of Valero’s want to expand even more into green energy:

Valero isn’t seriously considering any acquisitions in the refining or ethanol space, he said. However, “we are looking at opportunities in the animal-fat area” as a low-cost biodiesel option, [Chief Executive Officer Bill Klesse] said.

As I mentioned before, Valero continues to grow in renewable energy besides buying the old Verasun ethanol plants, investing in cellulosic ethanol company Qteros (see Joanna’s post from May 18, 2009) and using wind energy to refine its petroleum (see my post from June 29, 2009). If they get behind this latest idea for biodiesel like they have with ethanol, look for Valero to soon become a player in the biodiesel market.

This edition of “The Ethanol Report” features comments from Geoff Cooper with the Renewable Fuels Association on today’s increased corn crop forecast from USDA, how it disputes the indirect land use change theory and food versus fuel debate. Cooper also comments on the importance of ethanol to our national security as we remember the anniversary of the 9-11 terrorist attacks and celebrate the grand opening of a new ethanol plant in Minnesota.

You can subscribe to this twice monthly podcast by following this link.

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The U.S. Department of Agriculture increased the forecast for the nation’s corn crop by two percent in the September crop production report out Friday morning. The forecast is now an even 13 billion bushels, just 100 million bushels short of the 2007 record crop. The soybean crop, already expected to be the biggest ever, was boosted another one percent in the forecast to 3.25 billion bushels.

USDA is now saying yields are expected to average 161.9 bushels per acre, up 2.4 bushels from August and 8.0 bushels above last year. Yield forecasts increased from last month across the western Corn Belt and the northern half of the Great Plains as mild temperatures and adequate soil moisture supplies provided favorable growing conditions.

Some analysts believe the corn crop could ultimately be the largest ever. Even though both crop progress remains far behind normal, the weather forecast is calling for generally warm, mostly dry weather stretching into next week or so, which is great news for producers.

Manitoba will become the first province in Canada to require biodiesel in all diesel fuel when it mandates the blending of 2 percent biodiesel by November 1, 2009.

The news was welcomed by the Canadian Renewable Fuels Association:

“Today is a good day for homegrown biofuels in Manitoba and Canada,” said Gordon Quaiattini, President of the Canadian Renewable Fuels Association. “With today’s decision, Manitoba will become the first province in Canada to realize the many benefits of blending biodiesel in its fuel supply. Biodiesel is good for the environment, good for farmers, and good for the economy.”

The Manitoba 2% biodiesel mandate alone is equal to reducing greenhouse gas emissions by 56,000 tonnes a year, or taking 11,000 cars off the road.

British Columbia will mandate a 5 percent biodiesel blend at the beginning next year, while Alberta will institute a 2 percent biodiesel mandate by July 1, 2010.

It’s that time of year again… time to start talking about the National Biodiesel Conference and Expo!

Now, if you’re looking at your calendar, you’ll notice that the National Biodiesel Board’s premier event is still about five months off, scheduled to take place February 7-10 at the Gaylord Texan hotel, just a few minutes from the Dallas-Ft. Worth Airport. But now is the time to start making plans, and, in fact, Sept. 18th is an early bird deadline for exhibitors to take advantage of the best savings and to reserve the best booth space. Click here to register and for more information.

Meanwhile, our friends at the NBB say by listening to previous attendees and exhibitors, they are improving the networking possibilities for the numerous biodiesel marketers, feedstock growers, fuel distributors, government leaders and other biodiesel stakeholders.

From our new Monday evening reception in the Exhibit Hall, the addition of a new Biodiesel Networking Center in the Exhibit Hall, a new and improved NBB Connections social networking system to the numerous open forum “round table sessions” that will be offered this year, NBB wants to assist in these efforts to connect and learn! We believe these additions and changes to the program will create boundless networking opportunities and allow you to meet new people with some of the same biodiesel interests. Where better to meet than the premier biodiesel conference in the country?

For more information contact the NBB Conference Office at 303-798-3664 or e-mail at nbb@kinsleymeetings.com.

After more than three years of planning and construction, Highwater Ethanol in Lamberton, Minnesota is ready to open the doors and celebrate. The plant was officially announced on June 7, 2006 and began grinding corn last month.

The new 55 million gallon a year facility will hold its grand opening on September 11, the eighth anniversary of terrorist attacks on American soil which the Renewable Fuels Association notes are a “reminder of the threats posed to our nation every day, the bravery of our armed forces, and the vulnerability created by our heavy reliance on foreign sources of energy.”

Among the dignitaries scheduled to attend the event is Congressman Collin Peterson (D-MN), chairman of the House Agriculture Committee.

The Fall 2009 of Ethanol Retailer has recently been published by Growth Energy. The free pulication, distributed to over 25,000 retailers nation wide, is geared specifically towards independent ethanol retailers and petroleum marketers.

The magazine encourages installation of mid-level and E85 blends and provides the necessary information to retailers on the installation process at their station. The publication also highlights financial opportunities and incentives available to retailers for installation of ethanol blended fuel.

A few highlights of the Fall 2009 issue includes: first person stories on how two independent retailers took the fast track to installing blender pumps in Ohio and Inidana; mapping ethanol use in the U.S.; and the race to develop high-performance engines that are powered by ethanol.

See a copy of the Fall 2009 edition of Ethanol Retailer by clicking here.

In a follow up to a recent post about the forecasted record sugarcane harvest in Brazil, it appears that this won’t come to fruition. UNICA, the Brazilian Sugarcane Industry Association, has released today the news that heavy rains in South-Central Brazil, the country’s top sugarcane producing region, caused a drop of 23.8 percent in the volume of sugarcane crushed during the second half of August, as compared to the two weeks prior.

According to UNICA, the sharp reversal in climatic conditions caused several cane-growing regions to interrupt crushing in more than 50 percent of the available time. States most affected were São Paulo, Mato Grosso do Sul and Parana, with a crushed cane reduction of more than 30 percent compared to the first half of August.

The organization has also reported that accumulated ethanol exports so far in the harvest stood at 1.79 billion liters, 25.66 percent less than the 2.41 billion shipped abroad in the same period of the previous harvest. While anhydrous ethanol exports decreased by 67.4 percent, hydrated ethanol exports surged by 24.75 percent.

The volume of domestic sales is the result of two factors: sales of flex-fuel vehicles, which in August surpassed 94 percent of the total sales of Otto Cycle vehicles, increasing the fleet of flex vehicles to 35 percent of Brazil’s total; and the competitiveness of hydrated ethanol in comparison to gasoline prices at the pump. In more than 82 percent of the Brazilian market, prices at the pumps were below 65 percent of the price of a liter of gasoline.

UNICA’s revised projection for the production of sugar and ethanol in the 2009/2010 harvest will be released with the next harvest update, at the end of September.