Domestic Fuel

The New York State Energy Research and Development Authority has extended their Biofuel Station Initiative that will allow for 50 percent of the costs, up to $50,000 per site, for new installations of biofuels dispensing equipment, storage tanks and associated piping equipment.

The New York State Biofuel Station Initiative was launched in May 2007 and the objective is to increase the number of retail E85 and biodiesel service stations in New York through a comprehensive approach of providing incentives to both mid-stream distribution terminals and retail stations.

“NYSERDA’s biofuel station initiative has been successful in building an alternative fuel infrastructure throughout New York with more than 130 retail gas stations participating and the first 45 currently open,” noted Jeffrey Gordon, Director of Communications, NYSERDA. “E85 is a domestically produced alternative fuel that affords consumers a choice at the gas pump over conventional gasoline, is more environmentally-friendly, will reduce our demand for imported oil, and will keep our energy dollars right here in New York. With continued support from our federal and State administrations, E85 ethanol will continue to play a role in NYSERDA’s efforts to help build a vibrant clean energy economy for the future.”

Approximately $4 million is still available for retail fueling stations. Growth Energy Market Development is supplying the stations with their pump imaging package that will allow for a consistent message across the state. Each kit will be reimbursed from the grant.

For more information regarding this program, click here.

The ethanol industry was quick to respond to a Bloomberg Business Week article Monday that places the blame for the current hike in meat prices solely on using corn for ethanol.

The story quotes several meat industry representatives who state that current higher meat prices are “ethanol-induced” – the result of hog and cattle herds that were reduced in 2008 due because demand for more ethanol drove up the cost of feed.

Jumping to the defense of corn ethanol, Growth Energy CEO Tom Buis said the story “accepts as fact a disproven myth that ethanol somehow drives up food prices — the goal of a carefully coordinated propaganda campaign that is not based on truth.”

In fact, the Congressional Budget Office report released in April 2009 and a recent report from the UK found that it was mainly higher oil prices that drove prices for both food and feed higher in 2008. That was proven true last year when the amount of corn used for ethanol increased from 2008, but feed and food prices went down.

The completely one-sided article belatedly added a short paragraph with a response from the ethanol industry. Ethanol producers say their industry is unfairly blamed for the record feed costs of 2008. The surge reflected “wild speculation in the markets and the surge of index funds” rather than the jump in corn use for fuel, said Chris Thorne, a spokesman for Growth Energy, a Washington-based ethanol trade group. “Grain producers in this country will more than meet all expected demand for export, for food, for livestock feed and certainly for fuel.” That was added as an update in paragraph 22 some time after the original story was released on line.

Thanks to the efforts of the Renewable Fuels Association (RFA) and Protec Fuel there are now two new E85 fueling stations near I-10 just west of Jacksonville, Florida.

R H Davis Oil Exxon in Macclenny and Citgo in Glen St. Mary will provide more fueling options to drivers of flex-fuel vehicles (FFVs) on the interstate as well as commuters traveling to Jacksonville. R H Davis Oil Company utilized Protec Fuel’s turnkey E85 program that included station design, conversion, fuel supply and financial assistance.

“This is an exciting opportunity for the towns of Macclenny and St. Mary,” said R H Davis Oil President, Max Davis. “With the Chevy Dealership down the road ordering more flex-fuel trucks and cars, we have an increasing amount of Flex-Fuel Vehicle drivers, but we never had the fuel option of E85 to offer them. With these new stations, we are able to offer all of our customers a fuel they desire.”

“We are thrilled for the opening of two new E85 fueling locations in northern Florida,” said Protec Fuel CEO Todd Garner. “With more fuel option developments like this, we will be able improve and increase the use of ethanol throughout the country. We look forward to providing fuel for these new locations.”

“These stations are part of an overall strategic plan to increase the number of E85 stations throughout the Southeast in an area full of FFVs,” said RFA’s Director of Market Development, Robert White. To help find E85 stations while on the road, the RFA has developed a fuel locater application for Garmin and TomTom GPS systems. This application will map out fueling stations closest to the user’s location and their chosen destination.

The trading of futures contracts for the ethanol co-product that is used as livestock feed officially began today on the CME Group electronic trading platform, Globex.

Distillers’ Dried Grain (DDG) futures are a physically delivered contract designed to bring price discovery and transparency to the corn crush market allowing customers to better manage their price risk in the feed, livestock, dairy, biofuels, grains and oilseed industries. In addition, DDG futures can be combined with corn and ethanol futures to establish the Corn-for-Ethanol-Crush margin.

The contract will allow ethanol producers to create a complete risk management profile through hedging both inputs (corn, natural gas) and outputs (ethanol and DDGs); otherwise known as the “corn crush”.

More information is available here.

The White House has confirmed that President Obama will be visiting a Missouri ethanol plant this week. It will mark the first time Obama has visited a working ethanol biorefinery, although he was the guest speaker at the ribbon cutting of the now-bankrupt VeraSun plant in Charles City, Iowa when he was a presidential candidate.

According to the White House, Obama will tour POET Biorefining in Macon, Mo. and “talk to workers about what they are experiencing during these tough economic times and share ideas for rebuilding our economy in the long term.” The president is scheduled to “tour a local farm and visit with the family who operates the farm” in Missouri. The visits are part of what the administration calls the president’s “Main Street Tour,” but neither event will be open to the public. Tickets are being distributed for a speech that evening in Quincy, Ill.

Verenium Corporation has been awarded an additional $4.9 million from the U.S. Department of Energy (DOE) to fund ongoing activities at its demonstration-scale cellulosic ethanol facility in Jennings, Louisiana.

“We are very pleased to receive this additional funding from the DOE, particularly given the critical work currently being performed at Jennings to optimize our cellulosic process,” said Carlos A. Riva, President and Chief Executive Officer at Verenium. “I believe this award demonstrates further the DOE’s support for our technology and commitment to developing a cellulosic ethanol supply industry.”

The funding is an extension of the grant previously awarded to Verenium in 2008 under a DOE program supporting the development of demonstration-scale cellulosic ethanol biorefinery plants. The company plans to use the additional funds to support on-going cellulosic technology and process optimization at the Louisiana facility.

The largest ethanol producer in the world intends to be directly or indirectly responsible for the production of 3.5 billion gallons of cellulosic ethanol by 2022.

Speaking at the National Press Club in Washington, D.C., POET CEO Jeff Broin said they have made enough progress on technology and feedstock development to break ground on their first cellulosic ethanol plant in Emmetsburg, Iowa later this year. “By 2022, POET plans to be responsible for 3.5 billion gallons of cellulosic ethanol production by adding the technology to our existing facilities, licensing our technology to other producers and finally, transferring our technology to other forms of biomass such as wheat straw, switchgrass and municipal waste,” Broin said. That volume would represent over 20 percent of the cellulosic ethanol mandated in the Renewable Fuel Standard.

Specifically, one billion gallons of production capacity will come from adding the technology to POET’s existing network of 26 corn-based ethanol plants, while licensing that technology to other corn-based ethanol producers would add another 1.4 billion gallons of production capacity. Another 1.1 billion gallons of production capacity will come from a wide variety of other feedstocks from across the U.S, either produced by POET or through joint ventures and opportunities where POET Biomass provides logistics support to other producers.

POET submitted its application for a loan guarantee with the U.S. Department of Energy to build the Emmetsburg plant. “If we get that favorable ruling, we told the DOE that we will start construction by the end of this year, which puts us on track to start up the facility in early 2012,” said Broin.

Just in time for Earth Day last week, Colorado-based ZeaChem announced it had successfully produced commercial-grade ethyl acetate, a commercial grade “green chemical,” from woody biomass instead of oil. The ethyl acetate can either be sold to chemical manufacturers or converted into ethanol through hydrogenation.

“These results demonstrate ZeaChem’s ability to produce another valuable bio-based intermediate chemical on the road toward cellulosic ethanol production,” said Jim Imbler, president and chief executive officer of ZeaChem.

ZeaChem is now testing the downstream applications including hydrogenation, which is the final step in making cellulosic ethanol. The company intends to break ground on a demonstration plant in Boardman, Ore. in the near future, but has already begun construction on the equipment at their pilot plant in Hazen, Colo.

A new report says America’s warfighters are leaders in the use of alternative fuels.

This story from ExecutiveGov.com says a Pew Charitable Trust report has good news about the U.S. Department of Defense’s use of solar, geothermal and biodiesel:

According to [Phyllis Cuttino, director of Pew Charitable Trusts’ climate and energy programs], DoD accounts for 80 percent of the U.S. government’s energy consumption, which amounts to 330,000 barrels of oil and 3.8 billion kilowatts of electricity per day for more than 500 major military installations. However, she said, the department is working to meet its stated goal of having one-fourth of its energy come from renewable sources by 2025.

Additional examples of how the Navy is going green include developing a carrier strike group that will run completely on alternative fuels; powering the Naval Air Weapons Station China Lake by geothermal sources; and commissioning the USS Makin Island, a large-deck amphibious ship propelled by both gas and electric engines.

And don’t forget, it was just last month that the Air Force flew for the first time an A-10 Thunderbolt II, better known as the Warthog, on a biomass-based jet fuel.

Biodiesel producers in Missouri might be feeling like they’re the victims of insult added to injury. Not only have they lost the federal $1-a-gallon federal tax credit, but now, the St. Joseph News-Press reports they are the latest victims of state budget cuts:

Gov. Jay Nixon proposed reducing $4 million, or 16 percent, of the state subsidies for biodiesel plants as part of $45 million in budget cuts.

“It definitely is concerning,” said J.P. Dunn of the Missouri Soybean Association. “We could have an edge if we are fully funded.”

Ironically, Missouri is home to the headquarters of the National Biodiesel Board. The announcement came as the state was preparing to celebrate Earth Day.

America’s passenger train line is now running on America’s fuel – biodiesel.

The Ft. Worth Star-Telegram reports Amtrak’s Heartland Flyer that runs in Oklahoma and Texas is now being fueled with a 20 percent biodiesel blend made from beef fat:

“I don’t smell any french fries yet,” Amtrak assistant superintendent Joy Smith quipped as the Heartland Flyer arrived from Oklahoma City.

Emissions will also be measured to determine the environmental benefits. The Heartland Flyer burns about 100,000 gallons of diesel per year, said Roy Deitchman, Amtrak vice president of environmental health and safety. It makes a daily round trip of about 400 miles between Fort Worth and Oklahoma City.

Hopes are that one day all of Amtrak’s trains will run entirely on biodiesel.

This past week marked the 40th anniversary of the original green event, Earth Day. And the National Biodiesel Board used the occasion to call for an important tax break for the original advanced biofuel – biodiesel.

This NBB press release says renewal of the $1-a-gallon federal tax incentive is imperative for the economic health of the country and the ecological health of the world:

“Lawmakers need look no further than the National Mall to see cleaner-burning biodiesel at work powering generators this Earth Day,” said National Biodiesel Board (NBB) CEO Joe Jobe. “Not only does biodiesel have the best greenhouse gas reduction of any domestic transportation fuel, but also it is the only advanced biofuel currently in the U.S. commercial marketplace.”

Energy balance: Biodiesel produces 4.5 units of energy for every 1 unit it takes to make the fuel, boasting the highest energy balance, and the highest energy content of any American-made renewable fuel.

Versions of the bill to retroactively extend the credit have passed both the Senate and the House. But, the two chambers have not agreed upon a compromise between different bills.

According to Agweek, North Dakota’s Gov. John Hoeven along with the North Dakota Ethanol Council have announced the establishment of a new program that will fund North Dakota Ethanol Council’s marketing activities by dedicating a share of the industry’s production profits to promotion of ethanol. The check-off program will dedicate 3/100ths of one cent per gallon of ethanol produced and sold to these efforts.

“North Dakota’s agricultural economy and rural communities have directly benefited from the growth of the ethanol industry in our state,” Hoeven said. “Ethanol creates jobs and boosts income for our farmers.”

The North Dakota Ethanol Council includes representatives from all of the state’s major ethanol producers, including ADM Corn Processing, Walhalla; Blue Flint Ethanol, Underwood; Hankinson Renewable Energy, Hankinson; Red Trail Energy, LLC, Richardton; and Tharaldson Ethanol Plant, Casselton.

“As an industry, we are excited to have the Council established and staff hired,” says Jeff Zueger, NDEC chairman and Blue Flint Ethanol general manager. “These steps allow us to move forward with a coordinated effort to expand the ethanol industry in North Dakota.”

America’s ethanol producers have launched a new effort to educate the public about America’s fuel: ethanol.

CEO of Growth Energy Tom Buis recently was joined by Gen. Wesley Clark, co-chair of Growth, and former Iowa Congressman Jim Nussle, an advisor for Growth, in an announcement launching a $2.5 million TV advertising campaign on major cable television networks, including Fox News, MSNBC, CNBC, and CNN, that seeks to get the American public up-to-speed on ethanol, featuring the green facts of the fuel and dispelling the rumors around it.

In this edition of the Domestic Fuel Cast, you’ll hear some of that news conference and the arguments that should lay to rest any misconceptions about ethanol. Just click on the player below.

You can also subscribe to the DomesticFuel Cast here.

Podcast: Play in new window | Download (10.2MB)

Tomorrow will kick of the National Flexible Fuel Vehicle (FFV) Awareness Campaign across the state of Nebraska. The educational campaign is a joint project of the Clean Fuels Fuondation, the Governors’ Biofuels Coalition, the Nebraska Ethanol Board, and others who support the utilization of E85 compatible vehicles.

As reported in a press release from the Clean Fuels Foundation, Todd Sneller, Administrator of the Nebraska Ethanol Board, said “We are pleased to combine our ongoing efforts here in Nebraska with the nationwide program of the FFV Awareness Campaign. High ethanol blends like E85 can open up new markets for ethanol but we need to make sure drivers know they can use these fuels and where they can purchase them.” Sneller said several national surveys indicate that as many as 90% of the owners of FFVs either are not aware their vehicles have this capability or have never used ethanol blends. “The FFV campaign is about consumer awareness and driver education. We are going to begin with the drivers of the 87,000 FFVs on the roads of Nebraska immediately. There is no better time to start this campaign than on Earth Day.”

New state road signs will indicate if a station has E85 available and information on E85 and FFVs will be available at rest stops along Nebraska highways.

Douglas A. Durante, Director of the Clean Fuels Foundation, said the campaign is critical if the US is to achieve the benefits of the Renewable Fuels Standard (RFS) that is current law. “The U.S. Environmental Protection Agency (EPA) has stated the RFS can reduce pollution, increase farm income, lower fuel costs to consumers, and provide a host of other benefits, but only if we can actually use the fuel the program requires. Once we maximize the use of low level blends in conventional vehicles we must turn to FFVs.”

The National FFV Awareness Campaign is also promoting the use of higher ethanol blends in Florida and other states.