Domestic Fuel

There are less than eight weeks until the next elections and experts are predicting that Republications will be swept into office. Should this be the case, clean energy could have even more barriers to overcome, especially since many candidates are running on the platform that clean energy will cost more money.

Once such fight is underway in Massachusetts where candidates continue to fight the first federally approved off-shore wind project in Cape Cod. Their complaints: the cost of the power produced by the 130 turbines will be too high. Every candidate but one engaged in the governor race opposes the project. In addition, all the candidates running for the open seat in the 10th Congressional District are opposed. This is the district where Cape Wind would actually be built and seen, 5 miles offshore.

For those following this debate, you may remember that the late Bobby Kennedy, who claimed to be a supporter of clean energy and the environment, was vehemently opposed to the project because it was in his ‘backyard.’ The “not in my backyard, or NIMBY” mentally has grown in more force in recent months, and wind projects all over the country are struggling to get approvals. Several reasons cited are aesthetics, noise pollution and danger to birds. Kennedy has one major overriding opposition to the project – he didn’t want the turbines to mar his view.

“All people want to talk about is Cape Wind,” said state Sen. Robert O’Leary, a Democrat seeking the House seat in a ClimateWire article. “It’s a very, very high-priced project. We need to do the most … cost-effective, the best ones first. Cape Wind got in early, and it’s now turning out to be much more costly.”
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Fiberight-Blairstown Operating LLC has received a $2.9 million grant to help build a cellulosic ethanol plant in Blairstown, Iowa. The award was given by the Iowa Power Board Fund yesterday. Fiberight is developing technology to convert municipal solid waste into cellulosic ethanol, bio-chemical and other processed fiber products.

The company has plans to bring the plant to commercial scale levels by 2011 and expects the total project cost to be more than $7 million. It began the project by purchasing bankrupted corn ethanol plant Xethanol, LLC for $1.65 million and from there has begun the conversion project. The first phase of the project was completed in May of this year. Ultimately, the Virgina-based company has committed to investing $20 million of its own funds on the project. Prior to beginning the plant in Blairstown, Fiberight had successfully produced cellulosic ethanol in it’s Virgina pilot plant.

Once the plant moves to full-scale production using its proprietary conversion process, it expects to produce early 6 million gallons a year of cellulosic ethanol from waste materials collected in nearby Cedar Rapids, Iowa.

One day until the big game – the Iowa State versus Iowa football game that is. I will be at the game with the Iowa Corn Growers Association and the Iowa Corn Promotion Board helping to educate fans about the benefits of ethanol as well as the role Iowa corn farmers are playing in biofuels development. Iowa is the number one producing state of both ethanol and corn. This has been highlighted all week during several promotions as part of the Iowa Corn Fed Game Day sponsorship and on Tuesday, Herky the Hawk was hamming it up for ethanol.

Speaking of corn, corn is an ingredient in more than 4,000 products and is an important part of our daily lives. Who knew, right? Fans will learn more about these products when they stop by the Iowa Corn Fed Game Day tent at the Krause Family Plaza tomorrow between 10:00 am – 2:00 pm. Those who stop by can register to win $5,000 in free food and $2,500 in free fuel. You can also register online at www.iacornfed.com.

I will be posting updates tomorrow during the game. In the meantime, to get you pumped up for ethanol, watch Jerry Lalor with Fox 100.7 interview the non-talking but ethanol loving Iowa mascot, Herky the Hawk.

Distillers grains exports are hitting new highs.

Exports of the ethanol co-product distillers dried grains with solubles (DDGS) hit a new record in July of 886,300 metric tons – which is more than was exported in the entire year in 2004. Total exports this year so far are 4.95 million metric tons, getting close to the total last year of 5.65 million.

Geoff Cooper, VP of Research with the Renewable Fuels Association (RFA), says 2005 was really the first year that DDGS exports started to take off. “2005 was the first year that we exported more than one million metric tons and the growth has been very rapid since then,” Cooper said. This year, the U.S. ethanol industry is on pace to export 8.5 million metric tons of DDGS, or about 28% of expected total DDGS production.

One third of the nation’s ethanol production ends up as DDGS, a high quality animal feed which can be used for everything from cattle to fish, and livestock producers in other countries have been quick to see the advantages of feeding the protein rich product to their animals. Cooper says the U.S. Grains Council (USGC), along with other companies and organizations, have been promoting those advantages to help exports grow.

“Education is what’s going to sell your product,” said Cooper. “And we are seeing the fruits of that work in dramatically increased exports.”

The upcoming Export Exchange, co-sponsored by USGC and RFA, is an effort to continue that dramatic growth in DDGS exports. “That conference is meant to bring potential buyers of US distillers grains to the United States to have them learn as much as they can about the ethanol industry and the co-products that come out of the ethanol industry,” he said. “The goal is just to get them up to speed on distillers grains and open their eyes to the fact that it is a very economically option for them in terms of feeding their animals.”

The Export Exchange is being held October 6-8 at the Hyatt Regency McCormick Place Hotel in Chicago, Ill. More information and registration is available on-line here.

Listen to or download my interview with Geoff Cooper here: Geoff Cooper Interview

With the addition of E85 at Sharber Oil Company in Bainbridge, Georgia now has just shy of 40 locations where flex fuel vehicle owners can fill up with 85 percent ethanol fuel.

Sharber Oil Company became the 39th E85 station in Georgia this year thanks to assistance from Growth Energy’s 2010 E85 and Blender Pump Program.

Greg Waddell, General Manager of Sharber Oil Company said Growth Energy made it possible for them to “provide a product that we believe will be the future of automotive alternative fuel.”

The leader of the Blue-Dog Democrats, the bloc of House Democratic centrists, says President Obama’s efforts on ethanol and biodiesel are dragging his overall grade for his first year and a half in office down to just average.

The Hill reports that while Rep. Stephanie Herseth-Sandlin (D-S.D.), believes the President has done a good job on some economic issues, she’s not very happy with his policies regarding the green fuels and gives him an overall grade of a “C”:

“But on some of the other issues and some of the agency action, I haven’t been pleased with as it relates to some of the commitment I thought we would be having to ethanol and biodiesel and understanding and dealing with our forestry issues, I don’t think he did a good job,” she explained.

The Hill goes on to point out that Herseth-Sandlin is facing a tough reelection challenging and may be trying to distance herself from Obama and other Democrat leaders. She quickly backtracked after fellow Democrat Sen. Al Franken of Minnesota begged her constituents to vote for Herseth-Sandlin because she’d help Nancy Pelosi stay Speaker of the House. Herseth-Sandlin said the race was not about Pelosi or House Minority Leader John Boehner (R-Ohio).

He’s been a big advocate for biodiesel for quite some time, so it’s only fitting that the National Biodiesel Board has honored retiring U.S. Senator Kit Bond (R-MO) today with its Lifetime Achievement Award.

“America is striving for energy security and clean air, and Senator Bond deserves our thanks for helping to make biodiesel viable,” said NBB CEO Joe Jobe. “He’s our longest-standing champion in making our nation’s first commercially available advanced biofuel a reality.”

“I want to thank you all here at the National Biodiesel Board for this award and for your support,” said U.S. Senator Kit Bond. “In 40 years of public service, I have seen many ideas come and go. Biofuels, or generating energy from crops we have in abundance is an idea that is here to stay. It makes sense environmentally, it makes sense from a business perspective, and it means we don’t have to import as much energy from foreign sources. Congratulations to all of you for seeing that and for advancing biodiesel and this young, promising industry.”

Bond was recognized for his part in passing the federal biodiesel tax incentive and the Renewable Fuels Standard, as well as securing funding for major biodiesel research initiatives, including:
- A four-year Department of Transportation research program to address biodiesel feedstock development, engine testing, fuel quality, and glycerin uses
- A DOT biodiesel infrastructure development and petroleum industry education project
- A Federal Transit Authority program for studying biodiesel usage in urban transit buses
- A Department of Energy program to research the future potential of algae for biodiesel production

After his time in public service, Bond will be retiring to his farm near Mexico, Missouri … not far from Mid America Biofuels, one of the state’s largest biodiesel plants. Let’s hope his replacement will be as big of an advocate for the green fuel.

An ethanol plant in Iowa has received a nearly $2 million federal grant to use renewable biomass to replace the fossil fuels needed to run the biorefinery.

The USDA announced that the award comes from the Repowering Assistance Program, part of the 2008 Farm Bill:

Lincolnway Energy, LLC, based in Nevada, Iowa, has been selected to receive a $1.9 million payment award. The company produces 55 to 60 million gallons per year of fuel-grade ethanol. The USDA payment will reimburse the firm for costs to modify a boiler to burn wood and other biomass.

USDA’s Repowering Assistance Program was authorized under the 2008 Farm Bill and allows USDA to make payments to eligible biorefineries to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of these eligible biorefineries. Biorefineries that were in existence when the Bill was enacted, June 18, 2008, are eligible to apply.

More information is available through this USDA website.

U.S. exports substantially climbed during the month of July, this after three consecutive months of sliding numbers, according to government data released today. Denatured and undenatured (non-beverage) ethanol exports totaled 25.2 million gallons, up 57percent from June. Large volumes were imported by Brazil and the United Arab Emeriates (UAE) this month after several months of not importing any U.S. product.

Canada continued to serve as the top U.S. export destination for denatured ethanol, importing 9.5 million gallons of product. Finland imported its first shipment of U.S. denatured ethanol this year, totaling 4.5 million gallons. Brazil, the Netherlands, and UAE rounded out the top five denatured ethanol importers for July.

July exports of undenatured, non-beverage ethanol continued to slide. Only 2.7 million gallons of undenatured product was exported, down from 5 million gallons in June. However, nearly 90 percent of undenatured ethanol exports went to Mexico.

Exports continue at a record pace with total year-to-date ethanol exports for 2010 at 182.7 million gallons (121.7 million gallons of denatured ethanol and 61 million gallons of undenatured). Only once in the last 20 years has the U.S. exported more ethanol than it has through the first seven months of 2010. In 1995, the U.S. exported 197.5 million gallons of denatured and undenatured ethanol.

July also marked a new monthly record for exports of distillers dried grains with solubles (DDGS) with China the top destination claiming nearly 40 percent.
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Iowa based Kum & Go is a huge supporter of ethanol. In Iowa, 31 of their stations sell E85 and in total 62 of their stations sell E85. In addition, every Kum & Go station offers consumers the choice to use E10 each time they fill up. The company is so passionate about offering consumers ethanol blends at the pump, that they have partnered with the Iowa Corn Growers Association on their latest initiative, Iowa Corn Fed Game Day. I spoke with Matt Chase to learn more.

The promotion is designed to educate consumers about ethanol, but also to educate them about how important corn is in their daily lives. More than 4,000 everyday products use corn. But consumers don’t have to worry about having to make a choice between food, products or fuel. Iowa corn farmers, along with corn farmers around the country, are growing enough corn to meet all of our needs. In fact, this year is expected to be another record harvest using less land than in previous years.

You can learn more about food, fuel and products at www.iacornfed.com where you can register to win $5,000 in free food and $2,500 in free fuel. You can also learn more about the uses of corn by visiting the Iowa Corn Growers Association and the Iowa Corn Promotion Board during Saturday’s Iowa State versus Iowa football game in Iowa City. They will have a booth with fun activities set up in Krause Family Plaza from 10:00 am – 2:00 pm on Saturday, September 11, 2010.

Check out the photos from the pump rally here.

Calling all green-minded college students. It’s time to take action for the environment in the new contest, “Greenest Student College Challenge.” College students are being asked to submit the most inventive and ingenious “green” ideas emerging from their college campus, and one lucky college student will become the owner of a new iPad provided by Duke’s Restaurants. The contest is sponsored by ThinkGreenLiveClean.

As the fall term is now underway for most students, they are being asked to make green resolutions. These resolutions will be reviewed by a panel of judges and one student with be given an award for the best idea. Entries will be judged on creativity of the green resolution and details on how the idea will be fulfilled.

“Since our contest’s green resolutions can be viewed by anyone anywhere, the Greenest Student College Challenge is essentially a national brainstorming session with an iPad as an incentive,” said Wyatt Taubman, founder of ThinkGreenLiveClean. “Students will be able to read what other students have written and will hopefully become inspired by all the great green ideas floating around. These students are going to have the ideas that will change the future so we want to let their ideas be heard now on a national level.”

The Greenest Student College Challenge marks the first in a series of contests to be hosted by ThinkGreenLiveClean, an environmental news website launched in 2009 by 23 year old Wyatt Taubman. The contests will run throughout the school year, and future contests will explore different aspects of students living sustainably. Green Resolution contest entrants must enter by October 18 at www.ThinkGreenLiveClean.com.

Miscanthus has been much talked about in the past year as a strong contender as a feedstock for advanced ethanol. Yet scientists from the University of Illinois are cautioning that not enough is known about the feesdstock’s pros and cons to call it a viable option for ethanol.

The potential of miscanthus and switchgrass has been studied extensively by researchers Greg McIsaac, Mark B. David and Corey A. Mitchell and their latest findings will be published in the upcoming paper, “Miscanthus and Switchgrass Production in Central Illinois: Impacts on Hydrology and Inorganic Nitrogen,” that will appear in the September-October edition of the Journal of Environmental Quality.

The study focused on two important environmental concerns surrounding biomass: water quantity and nitrogen “leeching”. When compared to corn, soybeans and switchgrass, researchers found that miscanthus used substantially more water but leeched less nitrogen.

“We found that Miscanthus tends to dry out the soil much more than corn, soybeans, or switchgrass later in the growing season,” said Greg McIsaac, environmental scientist in the College of Agricultural, Consumer and Environmental Sciences. “This would likely reduce runoff, stream flow and surface water supplies later in the summer and in early fall, when streams are typically at their lowest. It could reduce the amount of water available to those who are downstream in late summer and early fall.”

The study also looked at nitrogen loss, or how it “leaches” into the ground water and travels. Opponents to corn ethanol have been very vocal claiming that the nitrogen from agricultural production is a major contributing factor to the “Dead Zone” in the Gulf of Mexico as well as in other areas of the ocean. (Other research has shown this is not the case.)
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Ethanol and other renewable energy industry groups are urging the Secretary of Energy to fix the Department of Energy’s Renewable Energy Loan Guarantee Program (LGP) and keep Congress from raiding it for other projects.

Growth Energy, along with the Renewable Fuels Association and six other organizations, sent a letter to DOE Secretary Steven Chu urging him to restore billions in funding to the program and address the problems that have prevented the program from providing loans for renewable energy projects.

To date, Congress has “borrowed” $3.5 billion from the Loan Guarantee Program to pay for emergency shortfalls in state revenues and the 2009 “Cash for Clunkers” program. The removal of these funds has left the LGP at 60 percent below the level that Congress originally appropriated.

Congress was able to take the funding from the LGP because the DOE has been slow in dispersing its resources. According to a July 12, 2010 U.S. Government Accountability Office (GAO) report, since the LGP was established in 2005, it has issued only one loan guarantee as of April, 2010.

In addition to the ethanol groups, the letter was signed by Clean Fuels Development Coalition, Solar Energy Industries Association, American Council on Renewable Energy, Biomass Coordinating Council, Biotechnology Industry Organization, and American Wind Energy Association.

Didion Ethanol in Cambria, Wisconsin is hosting a Green Energy Expo next week.

The event is open to the public to highlight ways to reduce energy and recycle at home and on the farm, and to learn about ethanol and the future of alternative fuels. There will be exhibitor booths, tours of Didion Ethanol and panel discussions on a variety of topics, including the benefits of ethanol and the future of biofuels. Visitors can also qualify to enter a drawing for tickets to Farm Aid 2010 to be held in Milwaukee on October 2.

Among the celebrities who will be at the Expo are Alice in Dairyland 2010 with her E-85 Flex-Fuel Chevrolet Tahoe and Captain Cornelius. Children will be able to make their own putty made from corn starch and also participate in a coloring contest for a chance to win a gift card.

The Didion Green Energy Expo will be held Thursday, September 16 from 2-7pm at Didion Ethanol in Cambria.

A $125,000 grant will help fund a project that studies biodiesel in train engines.

Biodiesel Magazine reports the Montana Department of Environmental Quality award for Opportunity Link, a Havre, Mont.-based economic development agency, includes the evaluation of B20 in a Burlington Northern Santa Fe Railway engine:

“We are supportive of environmental initiatives to identify alternative fuel sources and opportunities to reduce emissions,” said BNSF spokesman Gus Melonas.

The evaluation portion of the project is slated to run for one year. Staff at Montana State University Northern’s Bioenergy Center will test the B20 fuel, track how much is used, how it’s mixed, Stiffarm said. “At the end of each 90 day period, they will completely dismantle those engines and send them to their research and development [department] and have their engineers go through and check the filters and check the cylinders for any differences. Hopefully we are going to show that the biofuel is actually serving as a lubricant and is easier on the engines.”

If the test is successful, it could be quite lucrative in the biodiesel market. BNSF uses 70,000 to 80,000 gallons of diesel each day at each of its filling stations. The B20 will be tested in temps ranging from 100 degrees Fahrenheit in the summer to nearly minus 70 in the winter.