Domestic Fuel

American soybean growers have netted an extra $2.5 billion over the past four years, thanks to demand for soybean-based biodiesel.

This story from Feedtuffs.com says a new United Soybean Board and soybean checkoff-funded study also found that biodiesel added 25 cents to the price of a bushel of soybeans:

Because the price of petroleum diesel has such a large influence on the price of biodiesel and soybean oil, the study asserts that the biodiesel industry has essentially created a new floor for soybean oil prices.

“Any lowering of the price of inputs for the animal agriculture industry is a plus,” Bainbridge said. “The swine and dairy industries have had a tough time lately. This is a benefit for them. Every little bit helps in the poultry and livestock industries as far as decreasing their costs. And this demonstrates how biodiesel demand can have a positive impact on this important aspect of our food supply.”

You can read the results of the study at the USB Web site.

Wisconsin will be getting $1 million to help put in E85 ethanol and biodiesel stations and infrastructure across the state.

This article from the Milwaukee Business Journal says that the new Biofuels Retail Availability Improvement Network (BRAIN) will fund the installation of 27 E85 and biodiesel retail locations around the state, as well as support the installation of biodiesel blending equipment at three terminals in Wisconsin:

The U.S. Department of Energy is currently reviewing the application and will soon finalize the list of public and private partners that will receive funding through the grant program. Technologies and fuels covered under this program include neighborhood electric, hybrid-electric, plug-in hybrid electric, compressed natural gas, E85 and biodiesel.

The announcement comes on the heels of $15 million in stimulus funding announced last week for Wisconsin for clean transportation projects through the federal Clean Cities program. That money is paying for more than 500 alternative fuel and advanced technology vehicles through 119 public and private fleets throughout the state, as well as helping install 10 alternative fuel refueling sites.

They might be sailin’ the ocean blue, but some U.S. Navy pilots will soon be flying biodiesel green!

This press release from camelina-based biodiesel maker Sustainable Oils says the company has gotten a contract from the Defense Energy Support Center (DESC) for 40,000 gallons of camelina-based jet fuel:

The fuel will be delivered to the Naval Air Systems Command (NAVAIR) fuels team in 2009 and will support the Navy’s certification testing program of alternative fuels. The contract includes an option to supply up to an additional 150,000 gallons of camelina-based jet fuel.

Camelina was selected by the DESC because it does not compete with food crops, has been proven to reduce carbon emissions by more than 80 percent, and has already been successfully tested in a commercial airline test flight. In addition, camelina has naturally high oil content, is drought tolerant and requires less fertilizer and herbicides. It is an excellent rotation crop with wheat, and it can also grow on marginal land.

Company officials say this contract shows that camelina holds great promise as a biodiesel feedstock to use the green fuel in the aviation field well into the future. Navy officials say the buy proves their commitment to energy independence.

The First Coop Association held a grand opening celebration today from 10 a.m. until 2 p.m. for their new ethanol and biodiesel pumps. The station, located on Hwy. 71 South in Sioux Rapids, Iowa featured free food and ethanol and biodiesel specials.

The First Coop Association is one of many stations to take advantage of the Renewable Fuels Promotional Assistance Program sponsored by the Iowa Corn Promotion Board, the Iowa Renewable Fuels Association (IRFA) and the Iowa Soybean Association. Through the Renewable Fuels Promotional Assistance Program, Iowa Corn and IRFA partners with retailers for grand openings for E85 and ethanol blender dispensers. Iowa Soybean and IRFA partners with retailers for grand openings for biodiesel dispensers.

Retailers interested in installing an E85 or biodiesel dispenser can apply for a grant from the Iowa Department of Economic Development.

There are currently 129 E85 facilities in the state of Iowa.

The race is on… but this time it’s to build a cleaner burning snowmobile.

This post on the Good Green Cars blog says the Society of Automobile Engineers… aka SAE International… has challenged college engineering students to build a snowmobile that runs on biodiesel, ethanol or electricity:

The snowmobiles will be rated in categories like emissions, noise, and acceleration.The idea is to make internal combustion snowmobiles suitable for use in fragile natural areas, like in national parks. The quieter and cleaner a machine is, the less it will disturb both plant and animal life.

The goal for the zero-emissions category is even more specific: make a snowmobile that won’t skew the research being done at Summit Station in Greenland. Scientists there are working to understand the absorption of atmospheric gases by the ice cap, and any emissions from fossil fuels burned at the site can mess up the results of their measurements.

Biodiesel- and ethanol-powered vehicles are expected to be the first to hit the showrooms and are expected to do well in sales. Let’s see if they can get this race going by the time those first few snowflakes begin to fall.

Yesterday, I told you about how a biodiesel-fueled motorcycle is taking off for a 12,000-mile trip around Australia. Now, a restored 1965 Porsche made to run on biodiesel will take part in race around Newfoundland, Canada.

This article from the Rochester (NY) Democrat and Chronicle says local audiologist Steve Hart and his friend Tom Megan will compete in the Targa Newfoundland, a 1,400-mile road rally around the Canadian island:

They’ll be driving Megan’s souped-up 1965 Porsche, calling it the “Race for Hearing” to raise money for hearing aids, raise awareness of hearing loss and raise (civilized) hell on twisting two-lane roads, all on carbon-neutral, biodiesel fuel from a local source.

Targa’s race organizers say theirs is the first car to compete on pure biodiesel.

The five-day race starts Saturday and is expected to draw 300,000 spectators.

You can follow the racers on the Race for Hearing blog, and you can see some pretty neat pictures of the restoration of this classic Porsche here.

The energy company serving Philadelphia with electrical power is going to use its own product to run some of its vehicles.

The Philadelphia Inquirer reports that Peco Energy Co. is buying and modifying about 20 Ford F550 utility trucks to plug-in hybrid electric vehicles (PHEV). The move is part of a bigger, nationwide U.S. Department of Energy pilot program:

The Philadelphia company is one of about 50 utilities participating in a consortium to demonstrate PHEV performance in 378 mid-sized trucks. The consortium, organized by the Electric Power Research Institute, was given a $45 million stimulus grant. The utilities will receive matching grants up to $2.5 million to pay for the vehicles, which will be manufactured in the next two years in Michigan and Kentucky.

The article adds Peco also has 16 natural-gas vehicles, 47 hybrid electric SUVs and 650 trucks that run on biodiesel.

The potential of a historic corn crop in the United States – planted on fewer acres – demonstrates the country’s farmers can produce more than enough corn for both food and ethanol production, said Tom Buis, Chief Executive Officer of Growth Energy.

“There’s a mountain of corn out there – plenty of grain to meet demand for food and fuel,” Buis said. “Ethanol producers know that American farmers are the most efficient in the world, and this year’s corn crop stands to prove it yet again. The critics do not understand the productive capacity of America’s farmers, and their ability to produce more than enough to meet the food, feed and fuel needs of our nation. ”

Last week, the analytical firm Informa Economics raised its forecast for the 2009 corn crop to more than 13 billion bushels – an average yield of 162.6 bushels, grown on 5 million fewer acres than last year. If this forecast comes to be realized, it would be the largest in American history. An even bigger forecast was made by Allendale Inc., which is calling for a corn crop or 13.127 billion bushels. USDA’s next official estimate will be released on Friday and most are expecting it to be higher than last month.

“Ethanol opponents would have you believe that using corn for ethanol forces up prices for food. We have a surplus of corn, so where is the drop in food prices? Opponents to renewable ethanol would have you believe global food demand forces indirect land use changes when an acre of corn in the U.S. goes to ethanol instead of food. Yet we’re growing more corn out of fewer total acres,” Buis said.

The world’s largest rally competition will include an ethanol category for the first time next year.

The new category was introduced by the Dakar Rally organizers at the request of Brazilian rally veteran and former rally winner Klever Kolberg, who will drive the first-ever flex-fuel vehicle to take part in the prestigious race next year – a Brazilian-made 2010 Mitsubishi Pajero Sport model equipped with flex-fuel technology, with support from the Brazilian Sugarcane Industry Association (UNICA).

There is special meaning in supporting Kolberg’s effort according to UNICA President, Marcos Jank. “Ethanol is already utilized by the Indy Racing League, which is one of the most important racing categories in the world, and it is being adopted by a variety of categories here in Brazil and around the world. It is certainly significant to see that trend now arriving also at the Dakar, without a doubt one of the great events of its kind in the globe,” he said.

The 2010 Dakar Rally will be held in Argentina and Chile, with the start set for January 1st in Buenos Aires. The Dakar Rally was formerly known as Paris-Dakar.

This edition of “The Ethanol Report” features an interview with Renewable Fuels Association President and CEO Bob Dinneen during a visit to the 2009 Farm Progress Show in Decatur, Illinois on September 2. Dinneen discusses the need to increase the amount of ethanol allowed in gasoline above the current 10 percent, the Environmental Protection Agency rulemaking on the expanded Renewable Fuels Standard and the issue of indirect land use, and the ability of American farmers to continue to produce enough corn to meet the demand for ethanol.

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

Listen to or download the podcast here:

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New Holland sponsored coverage of last week’s Farm Progress Show on our sister website, AgWired.com. Domestic Fuel readers know we’ve worked with the company a number of times in recent years and have documented how committed they are to supporting biodiesel.

While at the show last week I talked with Gene Hemphill, New Holland and Tom Verry, National Biodiesel Board about The Biodiesel Alliance. NBB was the founder of the Alliance and New Holland was the first company of their kind to join.

The Biodiesel Alliance is a diverse coalition of organizations, agencies and businesses from across the nation who find common ground in their support for biodiesel fuel. Founded and managed by the National Biodiesel Board, the Biodiesel Alliance supports information sharing and opportunities to help advance the use of clean-burning, renewable biodiesel fuel that meets high industry standards. As a result, the Biodiesel Alliance is instrumental in helping others to recognize the benefits of biodiesel to human health, the environment, national energy security and the US economy.

Gene and New Holland have been big supporters of the biodiesel industry since the days when it was called soydiesel. The company has been innovative in warranting their tractors on blends of biodiesel fuel up to 100 percent. They’ve also encouraged their dealers to join the alliance and many, many people to join the Biodiesel Backers.

Tom says the number one issue facing the industry right now is the proposed RFS2 that EPA has put forth and for which they’re soliciting comments until later this month. The proposed regs require 1 billion gallons of biomass biodiesel by 2012. That should be accomplished mostly by biodiesel but EPA is penalizing biodiesel through its measurement of its carbon score from the controversial indirect land use issue. He says they’re failing to take into account things like increased efficiency and production of soybeans.

You can listen to my interview with Gene and Tom below:

You can also see a lot of our photos from the show in our Farm Progress Show Photo Album.

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The clock is ticking down on the comment period for the expanded Renewable Fuels Standard, better known as RFS2. The Environmental Protection Agency will be taking comments until September 25th – just 18 days from now.

Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA) is urging ethanol supporters to make their voices heard now on this important issue. “I am concerned that (the EPA) get this regulation implemented right,” Dinneen said during an interview last week at Farm Progress Show. “This is the first time the agency has been tasked with the responsibility of determining the carbon footprint of an industry and they are learning that’s not an easy thing to do and there is no scientific consensus to do it.”

Dinneen calls the principal of indirect land use being considered by the EPA “not just not scientifically sound, but silly” because it literally equates an acre of land used to grow ethanol in the United States with an acre of Brazilian land forest being destroyed. “This is a very big issue and we’re a long way from having it resolved.”

RFA has provided a simple way for people to make comments to the agency through an online advocacy tool at the website ChooseEthanol.com. Comments need to be received by EPA no later than September 25, 2009.

Global Biodiesel Producer Lake Erie Biofuels today announced a name change to HERO BX and a new technology pathway for the future of biofuels.

CEO Leonard Kosar says America needs a hero in the biofuels business. “HERO BX stands for high-quality biodiesel and that is what we produce everyday using multiple feedstocks,” said Kosar. “In the future, we will utilize our proprietary blending technology to determine what the most efficient and cost competitive second and third generation feedstocks are and add them to our feedstock portfolio. We are not only a biodiesel company, we are a fuel technology company.”

Kosar says their biodiesel production strategy involves using multiple feedstocks primarily from vegetable oils and waste oils. “What most second and third generation biofuels are not doing today is actually producing biodiesel,” said Kosar. “HERO BX is producing superior biodiesel today using first generation feedstocks from waste oil to catfish oil, to vegetable oil, and tomorrow we will add to our feedstock portfolio the most efficient and cost competitive second and third generation feedstocks such as camelina and algae.” He stressed the need to control the feedstock supply, rather than have it control them.

HERO BX is supporting the new award winning documentary “FUEL” starring and directed by Josh Tickell. The film is launching nationwide this month. “We are a major supporter of the film,” Kosar said. “We don’t support everything in it, certainly in its position with oil companies, but we do support the full story that it gives on what biodiesel is and how it fits into energy policy over the next decade and what it means to America.”

HERO BX, formerly Lake Erie Biofuels, LLC, started operations in 2007 and is Pennsylvania’s first large-scale biodiesel production facility. A fully accredited BQ-9000 producer and marketer of biodiesel, HERO BX is the leading producer of biodiesel in the United States and distributes its fuel around the world.

Audio from the HERO BX announcement is posted here:

Podcast: Play in new window | Download (3.7MB)

Two years ago, a biodiesel-powered motorcycle made a 3,000 km (1,800 miles) trip across Australia(see my post from Oct. 22, 2007).

Now, the folks in charge of the BioBike will up the ante as former oil driller Paul Carter will make a 20,000 km (12,000 miles) journey around the land of down under. This University of Adelaide press release has details.

The 40-year-old author and former offshore oil rigger will ride an award-winning biodiesel bike nicknamed “Betty”, built by the University’s Mechanical Engineering students in 2007.

Releasing just 71 grams of carbon dioxide per kilometre travelled on the Adelaide-Darwin trip in 2007, the BioBike won the major environment award in the Panasonic World Solar Challenge Greenfleet Technology Class that year. Its fuel efficiency was 3.5 litres per 100km.

Kestell says this trip will show just how effective biodiesel can be in the long haul for commercial vehicles. The trip will go from Adelaide, head south to Melbourne and then up the east coast of Australia to Sydney, Brisbane and Darwin before making a counter-clockwise trip around Australia, expecting to finish in November.

I was going to begin my review with a bad cliche, “solar never sleeps,” but alas it does since it harnesses the energy of the sun. But I couldn’t think of anything else clever so I decided to run with it. This week I reviewed the book, “Investing in Solar Stocks: An Investor’s Guide to Winning in the Global Renewable Energy Market.” With our economy you might think you can’t win in any investment but according to author Joseph Berwind, Founder of Alternative Energy Investing, this is not true. You just need to learn what factors will determine the winners and losers.

Now, I’m a loser when it comes to all things financial and investing is no exception. That’s why I have “people”. That being said, I struggled with the terminology but someone who dabbles in investments will find reading this book a breeze and full of great advice.

Here are a few key points. You can tell which technologies are most promising with three criteria: cost is everything, manufacturing matters, and conversion efficiency matters. From here, Berwind explains how to determine whether the technology is promising, how to assess the success of a companies manufacturing strategy and how to determine the efficiency factors of the technology.

Bertrand also talks about the importance of legislation and subsidies and their roles in the success or demise of the industry and the companies. He has some great charts to explain this including one that includes all the U.S. states’ renewable energy mandates.

In the end, he points out that no industry, including solar, has no risk, but learning how to understand these risks will help you pick the winners.

To read this book or any book I review visit my bookstore. If you have a book you’d like me to review, email me at jomschro2071@gmail.com.