Domestic Fuel

Two major organizations have announced that they will collaborate on key issues moving forward. The National Sorghum Producers (NSP) and the Sweet Sorghum Ethanol Association (SSEA) will begin working together to develop and expand the sweet sorghum industry. Sweet sorghum is currently a feedstock of interest for many researchers and companies in the quest to develop new feedstocks for biofuel development.

While SSEA will provide organizational support, NSP will focus on developing and implementing a legislative advocacy program. According to a press statement, the two organizations will share communication among their memberships and will explore future opportunities and synergies for joint conferences and other membership events.

“Sweet sorghum has become an important segment of our industry,” said Gerald Simonsen, NSP chairman. “We are excited about the opportunities our collaboration with SSEA will create for sorghum as we continue our push for the inclusion of sweet sorghum in the Renewable Fuels Standard (RFS2).”

Currently, NSP is working with the EPA to certify sweet sorghum as an advanced biofuel feedstock under RFS2 and Hal Debor, SSEA president, said they are pleased to be working as a team to achieve an advanced biofuel designation.

Steve Vanechanos, chairman of EPEC Biofuels Holdings Inc. and chairman of SSEA’s NSP Collaboration Committee concluded, “Elevating awareness of sweet sorghum’s vast potential as a biofuel feedstock is a precondition to building a sweet sorghum ethanol industry. By collaborating with NSP, we will be substantially increasing the decibel level of sweet sorghum advocacy.”

The lame duck session has kicked off in Washington and the ethanol industry continues to point out to legislators who are reviewing the ethanol and biodiesel tax credits, that the failure to renew these credits will cause thousands of biofuels workers to lose their jobs. The ethanol industry is scheduled to visit the White House on Thursday along with several other national ethanol and ag organizations, and today, in anticipation, the group submitted a letter to Congressional leaders.

In the letter, sent to Speaker Nancy Pelosi, House Minority Leader John Boehner, Senate Majority Leader Harry Reid, and Senate Minority Leader Mitch McConnell, the groups encouraged the extension of two ethanol related tax polices: the Volumetric Ethanol Excise Tax Credit (VEETC), and Alternative Fuel Infrastructure Credit. In addition, they asked that the definition of the cellulosic ethanol producer tax credit be expanded to include emerging feedstocks such as algae.

“The ethanol industry has been an essential component of our nation’s effort to achieve energy security and improve our environment,” the groups wrote in the letter. “The volumes of ethanol produced domestically have been uniquely successful in reducing our dependence on foreign, imported oil, and have helped to reduce our nation’s emissions of greenhouse gases and other pollutants. In addition, the ethanol industry has helped to revitalize our nation’s rural and farm economies by providing a value added market for agriculture, and supported the creation of hundreds of thousands of non-exportable, high-paying green jobs.”

On VEETC:
“Without VEETC, ethanol blending will become less economically attractive to refiners, resulting in a substantial decline in discretionary blending, and upward pressure on consumer gasoline prices. As a consequence of reduced demand, ethanol plants will close. One analysis concluded that as many as 118,000 jobs could be lost if Congress fails to extend this important incentive.”

On the Alternative Fuel Infrastructure Credit:
“Today, there are approximately 160,000 retail fuel outlets around the nation; however, only 2,300 are fitted with equipment able to dispense E85, and just a few hundred that can offer mid-level blends. It is essential that there continue to be incentives to develop the infrastructure needed to make the ethanol blended fuels available to consumers.”

On Cellulosic Ethanol and Other Advanced Biofuels:
“We believe that as we look to extend incentives for ethanol and incentives to support infrastructure, we must continue to support efforts that help the next generation of ethanol overcome commercialization hurdles. To this end, we call on Congress to pass legislation expanding the cellulosic biofuels producer tax credit which includes a broader range of eligible advanced biofuels including algae, and the ability to allow developers to elect a refundable 30 percent investment tax credit.”

The groups concluded, “Not only are these incentives necessary to provide certainty in the marketplace as we work collaboratively to reform the Federal tax structure for renewable energy, but they are also essential if we, as a nation, are intent on continuing our goals of achieving energy security, creating green jobs, and revitalizing rural communities across the country.”

There were lots of ethanol issues to discuss at the National Association of Farm Broadcasting annual Trade Talk event in Kansas City last week. The topics included the lame duck session of Congress, importance of renewing biofuels tax incentives, doing more to invest in cellulosic ethanol, labeling for E15 at the pump, just to name a few.

Renewable Fuels Association president and CEO Bob Dinneen says it is one of his favorite events of the year. “I think farm broadcasters are doing a lot of hard work trying to make sure that Americans understand the important debates that are going on in DC,” Dinneen says. “I love these folks and I love being here.”

This edition of “The Ethanol Report” comes from the NAFB meeting and Bob comments on all of these important issues facing the ethanol industry. He says he is optimistic about getting biofuels tax incentives extended. “I think that there’s an opportunity to extend the ethanol tax incentive, the Bush tax incentives and also the biodiesel tax credit and other important tax incentives that need to be addressed before the end of this year.” RFA joined with several other ethanol and agricultural organizations in writing a letter to Congressional leaders about the need to address extension of the Volumetric Ethanol Excise Tax Credit (VEETC) and the Alternative Fuel Infrastructure Credit, and to broaden the definition of the cellulosic ethanol producer tax credit to include additional feedstocks like algae.

Dinneen spoke at the Cellulosic Biofuels and Biorefineries Summit in Washington, DC today to stress the importance of encouraging investment in cellulosic ethanol. “I’m strongly supportive of a refundable investment tax credit, because you’ve got to do some innovative things to free up capitol and allow cellulosic ethanol to move forward,” he says.

Listen to the Ethanol Report here: Ethanol Report from NAFB

After a six year absence in the IndyCar Series, Chevrolet will be back on track with a new twin-turbocharged direct-injected V-6 racing engine powered by E85 for the 2012 IZOD IndyCar Series. The new engine is being developed by GM and Ilmor Engineering and to date, Team Penske is the first and only team to commit to the new engine for the 2012 season. Team Penske previously tallied 31 open-wheel victories with Chevrolet engines, including four Indianapolis 500 wins.

“Indianapolis Motor Speedway has been a proving ground for manufacturers since Louis Chevrolet, our co-founder, first raced here in 1909,” said Chris Perry, vice president of Chevrolet Marketing. “Our return to IndyCar as Chevrolet enters its centennial year is natural. At the same time this engine program will be a showcase for the efficient and powerful engine technologies that parallel new Chevrolet vehicles like the Camaro, all-new Cruze compact and Equinox crossover.”

Chevy engines last raced in the IndyCar Series between 2002-2005 when Honda came on board and developed the engines that first used E100 in racing. Since the historic IndyCar ethanol announcement in 2005, and the first race with ethanol blended fuel in 2006, many other racing leagues have made a switch to ethanol, the most recent being Nascar.

The Chevrolet IndyCar V-6 will have a displacement of 2.4 liters and the powerplant will have an aluminum block and cylinder heads, and will be a fully stressed chassis member supporting the gearbox and rear suspension. However, specific technical details and specifications will be released at a later date. Also, per IndyCar rules, all teams have the opportunity to compete with the new engines but are not required. Teams may also continue racing with their current Honda engines.

“We are excited to have engine manufacturer competition again in the IZOD IndyCar Series, beginning in 2012,” said Randy Bernard, CEO, IndyCar. “Chevrolet brings a strong passion for racing, technology, relevance and innovation, which is a great fit for our new car platform. We are excited about the future of IndyCar racing with the addition of Chevrolet.”

The Iowa Power Fund has awarded three energy projects in the state more than $4.2 million. The decisions were made yesterday during the board meeting which took place at Grand View University. When combined, the three projects will generate an additional $21 million in leveraged funds. To date, the Iowa Power Fund has awarded more than $47 million to 37 projects focusing on energy research and development, early stage commercialization and education.

Ames-based AmbroZea was awarded $1.5 million for its work in the ethanol industry. The company will be applying high-protein expression biotechnology to further optimize multi-tasking yeast for commercial deployment.

Boone-based Avello Bioenergy, Inc. was awarded $2.5 million to help the company build a demonstration scale biomass plant, using local “farm-raised” feedstocks. The company is partnering with both the private industry and academics on the facility. The grant also include an educational component to reach out to researchers and students at Iowa State University and the Iowa Farm Bureau to benefit farmers.

The third award was given to Des Moines-based Indigo Dawn to focus on energy efficiency in renovated buildings.

Growth Energy CEO Tom Buis and organization founding member Dave Vander Griend of ICM were the first to testify at a public hearing today in Chicago on EPA’s proposed label for 15 percent ethanol fuel at the pump.

Buis stressed that the country has gone through fuel changes before, such as the transition to unleaded, and he is confident the transition to higher ethanol blends can be made. “Our recommendations for the label – be fair, inform and educate, don’t scare and alarm people. Consumers are smart and informing them is the goal here.”

Vander Griend noted that there has been very little confusion among consumers who are using blender pumps in Kansas. “For nearly three years, we have successfully demonstrated our ability to inform consumers with the appropriate label,” he said. “We do not believe that large, onerous warning labels are necessary for identifying an E15 fuel blend.”

Several sensible suggestions for making the label less scary and confusing include replacing the word “Caution” with “Attention” and listing Flex Fuel Vehicles first in those approved for use of the fuel.

Listen to Buis and Vander Griend opening comments here.
Tom Buis and Dave Vander Griend

The Environmental Protection Agency is holding a public hearing today at the Millennium Knickerbocker Hotel in Chicago, starting at 10 am central and continuing “until everyone present has had a chance to speak” on the agency’s proposed rule governing how pumps carrying E15 will be labeled.

Among those scheduled to testify are representatives of the ethanol organization Growth Energy, including CEO Tom Buis. The E15 pump labeling rule follows the first of two expected decisions by EPA on Growth Energy’s petition to permit the blending of up to 15 percent ethanol, or E15, in transportation fuel.

Renewable Fuels Association president and CEO Bob Dinneen says the label as proposed could have a chilling effect on ethanol blend sales. “It’s a warning label, they seem to think it’s just an informational label,” said Dinneen. “Consumers are going to see ETHANOL and they’re going to see WARNING and they’re going to see this bright orange and they’re going to be not just confused, they’re going to be scared.”

EPA and the Department of Energy are still conducting tests on vehicles made between 2001 and 2006, so the labels could have to be changed even after they are approved.

To get a heads start on Thanksgiving celebrations, Minnesota flex-fuel vehicle (FFVs) drivers will have the opportunity to fill up with E85 for 85 cents less per gallon on Tuesday, November 23, 2010. The “Fuel Your Holiday” promotion will take place at a Holiday station from 4-6 pm located at 12290 Nicollet Avenue in Burnsville.

There are more than 225,000 FFVs registered in Minnesota and 1,700 FFVs in Burnsville. Yet not every FFV owner is aware he or she can fill-up with higher blends of ethanol. Therefore, there will be people on hand at the station to help you determine if your vehicle is in fact an FFV.

Supporters of the promotion include Holiday Companies, the Minnesota Corn Growers Association, U.S. Department of Energy Clean Cities and the American Lung Association in Minnesota. For a complete listing of the E85 stations in Minnesota, as well as a list of all flex fuel vehicles that can use E85, visit www.CleanAirChoice.org.  For a list of Holiday stations that offer E85, visit www.holidaystationstores.com.

HyperSolar, Inc. has announced that their new solar design models have the potential to increase magnification by 300 percent. This would increase the power output of solar cells.

“The higher the light magnification in the HyperSolar layer, the higher the power magnification of the attached solar cell. As part of our development plan, we are exploring various designs and microphotonic elements to increase the magnification by as much as 400 percent in the final product,” said Tim Young, HyperSolar’s CEO. “We are very excited about this breakthrough by our development team.”

Young continued by explaining that considerable work has been done in the solar industry to make solar cells more efficient but his company believes that controling the delivery of sunlight onto solar cells would be a critical advancement. “At HyperSolar, we are developing the world’s first thin and flat light magnification layer for direct application on top of standard solar cells to increase their power output. We are encouraged by our recent results. Our plan is to move to the prototype stage early next year and then to a commercial product,” said Young.

According to a company release, their innovative thin and flat light magnification layer employs thousands of very small light collectors on the surface. These collectors funnel light into a proprietary light routing network in the middle that carries light to a smaller output area on the bottom where a solar cell can be attached. Rather than using three solar cells to cover an area on a solar panel, only one solar cell is needed underneath a 300 percent HyperSolar layer. The result is the need for 66 percent less solar cells per panel and a dramatic cost reduction per watt of the solar panels.

“The higher the light magnification in the HyperSolar layer, the higher the power magnification of the attached solar cell. As part of our development plan, we are exploring various designs and microphotonic elements to increase the magnification by as much as 400 percent in the final product,” concluded Young.

The new Senator-Elect for Kansas believes the ethanol and biodiesel tax credits will be extended by Congress in the lame duck session.

“Both of those will be part of this tax package that I think can and will pass during the lame duck session,” said Rep. Jerry Moran (R-KS), who was just elected as senator after 14 years in the House. “Probably the blenders tax credit for ethanol, maybe at its current rate or close to it, for a year and then the battle will continue about what that tax credit should be.”

The Kansas Congressman says the EPA decision on E15 is a step, but it doesn’t solve the demand issue for ethanol. “If it’s going to mean something, it’s got to apply to more vehicles than where the EPA is today,” said Moran.

The newly elected senator spoke to the National Association of Farm Broadcasting annual meeting on Friday and did several interview during the stop on his way driving out to the nation’s capitol.

Listen to Jerry Moran’s comments on biofuels issues here: Jerry Moran

A passenger train that runs on biodiesel has been picked as one of Time magazine’s 50 Best Inventions of 2010.

Amtrak’s Heartland Flyer offers daily service between Ft. Worth, Texas and Oklahoma City, OK:

Since spring, the Heartland Flyer has been running on 20% biodiesel rather than the carbon-heavy diesel fuel on which Amtrak’s other trains — with the exception of the electric Acela Express — currently operate. The biodiesel reduces air pollution and helps cash-strapped Amtrak save on fuel. And appropriately for a train in cow country, the biodiesel is made from rendered cattle fat.”

The article does worry if this would be scalable outside of the beef belt. To paraphrase a chip company’s motto, “use all you like, the biodiesel industry will make more.”

A city bus in Peoria, Illinois is now proudly proclaiming its use of biodiesel.

This article from the Peoria Journal Star says the bus is wrapped in a scene of white clouds and green fields:

“This bus runs on B20 biodiesel,” says an advertising wrap which promotes cleaner fuels.

“Use of biodiesel is a winner all the way around,” said Bill Wykes, secretary of the Illinois Soybean Association. “It’s good for the environment. It’s good for the economy. It’s good for Illinois soybean producers.”

The city has 46 more new buses on the way.

The use of biodiesel in heating oil … better known as bioheat … was part of the talk at the recent National Association of Farm Broadcasters’ meeting in Kansas City, MO.

Our own Cindy Zimmerman caught up with two players in the bioheat business … one from the raw material end and the other on the consumer-distribution end … to get their takes on the emerging bioheat market and what the future holds for the green heating fuel.

Greg Anderson, a past chairman of the United Soybean Board (USB) and a grower from Nebraska, says putting biodiesel in heating oil was a natural extension of the soybean checkoff’s efforts to get more markets for soybeans and its co-products that first started with biodiesel replacing petroleum in vehicle engines. “We got to looking at the concept of, well, heating oil is a petroleum product and how about including biodiesel into heating oil applications?” He says now, bioheat is well-established on the East Coast. He adds that while most of the bioheat used now is a 2 percent blend, he expects that number could climb to 100 percent in the next 50 years. He says that would create a massive potential for biodiesel in just the heating oil market alone. “Right now, we’re looking at 7 billion gallons of heating oil just in the Northeast [U.S.].” And he says that could easily expand to western areas that also use heating oil.

Meanwhile, Don Allen of E.T. Lawson, a heating oil distributor from Virginia, says a few years ago, his 93-year-old company decided to get into the bioheat business. “This is our fourth year, we sell a 2 percent mixture to [more than] 7,000 homes, and couldn’t be happier.” Allen says his new bioheat business has been so successful he came to the Midwest to work with the National Biodiesel Board to get support for a bill in the U.S. Congress that would mandate a 2-5 percent mixture for the East Coast from Virginia to Maine. He adds that while logic would say there shouldn’t be any opposition, you never know with politicians. “I’m not a politician, so I can’t apply the ‘no-brainer’ or ‘brainer’ situation to Washington. There are obstacles to overcome politically, and we hope with the Congressional support we get from the American farmer in addition to the support we’ll engender back east, we’ll get it done.” Allen points out that his heating oil colleagues are under mandates to reduce greenhouse gas emissions, and bioheat is a perfect fit.

You can hear more of Cindy’s conversation about bioheat at NAFB Trade Talk here:Bioheat at NAFB Trade Talk

The vast majority of the $6 billion GE Energy Financial Services has put into its renewable energy efforts has gone into wind energy development.

The Wall Street Journal reports that most of the $6 billion has been invested in the past six years:

For GE, about 80% of the capital went to providing equity and debt for wind projects. As of mid-October, for example, it had an equity stake in about 6,000 megawatts of wind projects. That represented about 16% of the total wind power capacity installed in the U.S. GE also held debt in about 1,300 megawatts of wind projects.

In many cases, the wind projects that GE Energy Financial Services backs are also buying GE turbines. GE is supplying $1.4 billion of turbines, for example, to the Shepherds Flats project.

The article goes on to say that GE had also invested about $1 billion invested in solar, hydro and biofuels, mostly in the U.S.

ICM, Inc. has signed a contract with Hereford Renewable Energy, a subsidiary of Murphy Oil USA, to retrofit an ethanol plant located near Hereford, Texas. Hereford Renewable Energy acquired the uncompleted plant from the lenders of its former owner, Hereford Biofuels, which filed for bankruptcy.

“ICM is excited for the opportunity to continue its work with Murphy to help its Hereford ethanol plant overcome the challenges that prevented the prior owner from starting up the plant at completion of initial construction,” said Dave Vander Griend, president and CEO of ICM.

ICM will make modifications to various parts of the facility, including addition of new equipment which will enable the plant to consistently achieve nameplate capacity. Hereford Renewable Energy’s primary goal in retrofitting the plant prior to start-up is to capitalize on the improved operating efficiencies expected from the incorporation of ICM’s industry-leading process technology. ICM’s retrofit of the plant is anticipated to be completed by the end of the first quarter 2011.