Domestic Fuel

Agriculture Secretary Tom Vilsack today announced $44.6 million in payments for 156 advanced biofuel producers across the country to support the production and expansion of advanced biofuels.

“This funding will help local producers increase the production and availability of renewable energy and thus help our nation begin to reduce its reliance on foreign oil,” Vilsack said. “Just as importantly, USDA’s support will help to further develop the nation’s growing biofuels industry and generate green jobs and economic growth.”

The funding is being provided through USDA’s Bioenergy Program for Advanced Biofuels program, the same program that provided $80 million in payments last month. Under this program, payments are made to eligible producers based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch – including cellulose; crop residue; animal, food and yard waste material; biogas (landfill and sewage waste treatment gas); vegetable oil, and animal fat.

Eighteen companies will receive over $1 million, four of them are over $2 million – including Renewable Energy Group of Iowa with $3.7 million; White Energy in Kansas at $3.1 million; Louis Dreyfus in Indiana with $2.4 million and Ag Processing of Nebraska at almost $2.1 million. The majority of the highest payments are for Biodiesel Trans Esterification, with a good percentage for advanced ethanol production, biofuel from waste and anaerobic digesters.

See the full list of recipients here.

Keynote speakers at the 17th Annual National Ethanol Conference will offer “Insider Perspectives on Election 2012 – The Presidency and Congress.”

Karl Rove will speak from the Republican perspective. Rove served as Senior Advisor to President George W. Bush from 2000–2007 and Deputy Chief of Staff from 2004–2007. He is known as “The Architect” of President Bush’s 2000 and 2004 campaigns.

From the Democrat angle, NEC participants will hear from Robert Gibbs, who has been an advisor and strategist to President Obama from the early days of Obama’s 2004 Senate race on to the White House. Most recently, Gibbs has served as President Obama’s Press Secretary.

Registration is now open for the Renewable Fuels Association National Ethanol Conference – Accelerating Industry Innovation. The conference will be held February 22-24 in Orlando, Florida at the Gaylord Palms Resort and Convention Center.

More information can be found on the conference website – NationalEthanolConference.com.

Advanced ethanol companies are urging Congressional leaders to include an energy title in any new farm legislation that is developed.

In a letter to Senate and House ag leaders this week, the Advanced Ethanol Council (AEC) urged them to include important rural energy initiatives currently being administered by the Department of Agriculture (USDA) in .

Specifically, AEC would like to see the USDA Loan Guarantee program for biorefinery projects extended while improving some provisions to increase participation by lending institutions. Also, reform of the Biomass Crop Assistance Program (BCAP) to increase cost effectiveness, encourage energy crop production and include efforts to preserve the environmental benefits of land coming out of conservation programs. Finally, AEC encourages lawmakers to support USDA’s efforts to build out ethanol refueling infrastructure under the Rural Energy for America Program (REAP) to facilitate market access that is critical to the ongoing development and deployment of advanced ethanol fuels.

“The next generation of the U.S. ethanol industry is just beginning to break ground on first commercial projects across the country, and while the Energy Title currently accounts for less than 1 percent of total budgetary outlays for the 2008 Farm Bill, many of these programs will be critical to existing and future advanced ethanol development projects,” wrote AEC Executive Director Brooke Coleman in the letter. “We are aware that the funding available for the new Farm Bill will be reduced significantly …. and look forward to thinking creatively with you about comprehensive solutions that cut cost but continue to provide meaningful value to an emerging advanced ethanol industry.”

Additionally, members of the AEC expressed interest in working with lawmakers to modify the Repowering Assistance program to help existing biorefining operations deploy advanced ethanol technologies and feedstock utilization. Many emerging advanced ethanol technologies will provide value to existing ethanol production facilities by diversifying feedstocks and improving efficiencies as well as creating new opportunities as stand alone facilities.

The AEC is made up of leading companies in the world’s advanced ethanol industry in conjunction with the Renewable Fuels Association (RFA).

Growth Energy CEO Tom Buis is looking forward to seeing black, silver and green Sunday at the Martinsville (Virginia) Speedway NASCAR Sprint Cup Series race. The No. 33 Richard Childress Racing Chevrolet race car will feature the American Ethanol paint design and Clint Bowyer, just coming off a win last weekend at Talladega, will be at the wheel.

“Glad to see him in the American Ethanol paint out for the second time this year,” said Buis, pictured here with Bowyer at the Sprint Cup Series STP 400 race in June at the Kansas Speedway.

Under the American Ethanol partnership between NASCAR, Growth Energy, and the National Corn Growers Association all NASCAR series races this year have been powered by 15% ethanol. “These cars can go around for several hours at speeds around 200 miles per hour and they haven’t had any problems with the fuel,” Buis said. “NASCAR is a third party validator to those legions of NASCAR fans who’ve heard all the misinformation about ethanol. Every week, in all three NASCAR series, the winning car in victory lane got there successfully with E15 in their tank.”

The Martinsville Speedway Sprint Cup Series race will be on ESPN beginning at 1:30 Eastern at Martinsville (Virginia) Speedway.’

Listen to an interview with Tom Buis where we talk about not only the upcoming race this weekend, but other issues facing the ethanol industry – everything from getting the E15 waiver implemented to whether there will be an energy title in the next farm bill. Tom Buis Interview

There’s a chill in the air and winter weather is just around the corner. After last winter’s extremely cold temperatures, it’s especially important for diesel fuel users to make sure they are ready.

That means winter treatment for diesel fuel, according to GROWMARK marketing manager for refined and renewable fuels Mark Dehner. “Diesel fuel is impacted by cold temperatures. There are paraffins, or wax, in diesel fuel and as the temperature decreases these paraffins start to precipitate out of the fuel and may get large enough so they’ll plug filters or fuel lines,” Dehner says.

As a diesel fuel supplier, GROWMARK takes pains to make sure that doesn’t happen for their customers by blending number one diesel fuel into number two to dilute the wax, or they will use chemical treatments. “Chemistry usually involves wax modifiers that will not allow them to conglomerate,” he explains.

GROWMARK also sells biodiesel blends in the winter. “A lot of our customers use biodiesel throughout the wintertime, but we have to manage it differently,” Dehner says. “We may use a combination of cold flow chemistry along with some blending of number one.”

Dehner says it all comes down to fuel quality maintenance.

Listen to my interview with Mark Dehner here: Mark Dehner with GROWMARK

Get out your 2012 calendars and mark the date for just under a year from now to attend the next global event to help increase exports of ethanol co-products for livestock feed.

Once again, the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA) are teaming up for the Export Exchange 2012, an international trade conference focused on the export of U.S. coarse grains and co-products, including distiller’s dried grains with solubles (DDGS) and corn gluten. The last such event was held last year about this time in Chicago.

“Export Exchange 2010 was a huge success,” said Wendell Shauman, USGC chairman. “People from all around the world gathered in one central location to make deals and get information regarding these vital commodities. Business contacts made during the conference are still being used today.”

Export Exchange 2012 will be held Oct. 22-24 at the Minneapolis Marriott City Center. Additional information will be posted at www.exportexchange.org as it develops.

The jury has ruled but the judgement is still out on the lawsuit between Novozymes and Danisco over a patent for enzymes used in biofuels production.

A jury in the US District Court for the Western District of Wisconsin determined that Novozymes patent is valid and ordered Danisco to pay damages of more than $18 million for infringement. The jury also found Danisco’s infringement to be willful but the jury’s decision is still subject to the judge’s affirmation and possible appeals.

Novozymes’ patent covers certain alpha-amylase enzymes for use in the biofuel and starch industries. The infringing products have primarily been used to produce ethanol from corn starch in the United States. Novozymes filed the lawsuit against Danisco in May 2010. Danisco was acquired by DuPont earlier this year.

Outlining his priorities for farm policy this week, Agriculture Secretary Tom Vilsack stressed the need for continued support of renewable fuels in the next farm bill.

“Rural America has done a great job of helping to develop the domestically-produced renewable energy and fuel. That job must continue because when we create those opportunities, we create jobs, we reduce our reliance on foreign energy sources, and we enhance our national security,” Vilsack said during a speech at a John Deere facility in Des Moines on Monday. “USDA has to have the tools to be able to continue to help this biobased and biofuel and renewable energy economy, and we need to make sure that it’s vibrant in all regions of the country. Continuing our investment in renewable energy, biofuel, and biobased products will improve the bottom line for farmers as we find creative ways to use that which they grow.”

The secretary noted that expansion in the biofuel industry has already had an impact. “We’ve gone from importing 60 percent of our oil to 52 percent,” he said. “As a result of our biofuel industries, consumers across America are paying about $0.90, on average, less for gas than they would otherwise pay. So it’s a great opportunity for consumer choice, it’s a job creator, and it improves income opportunities for farmers.”

Specifically, Vilsack wants to see at least the BCAP (Biomass Crop Assistance Program) and the REAP (Rural Energy For America Program) programs continued.

A new public education project to reach drivers of FlexFuel Vehicles (FFVs) by working with state Motor Vehicle Administrations (MVA) was announced today by the Alliance of Automobile Manufacturers and the Clean Fuels Foundation.

As a part of the national FFV Awareness Campaign, the “FlexFuel Vehicle/Motor Vehicle Administration” project will work with MVAs in six states on outreach opportunities such as developing an FFV owner database, vehicle registration and license renewals, safety inspection and emissions notices, and including information with the energy/emergency preparedness program, state websites, and at point of service. The six states are Iowa, Kansas, Nebraska, Maryland, Georgia, and Florida.

“Working together with MVAs and automakers we want to reach drivers of FFVs to make sure they are aware that their vehicles have the capability of using high-level ethanol blends,” said FFV Awareness Campaign Manager Burl Haigwood. “Educating drivers about fuel choice will result in proper refueling and protect ethanol’s stellar 30-year marketplace reputation.”

The Alliance of Automobile Manufacturers CEO Mitch Bainwol says they represent 12 companies of FFVs that see the need for consumer education. “FlexFuel Vehicles are a growing segment of the auto pool. We are pleased to help sponsor this project to increase the use of alternative fuels like E85 and in so doing, educate drivers to avoid the potential for misfueling.”

FFV Awareness Campaign supporters noted that reaching drivers in cooperation with the DMVs is essentially a no-to-low cost means to help states meet their goals to reduce petroleum use, support new biofuel technologies, and improve air quality. The Alliance now joins EPA, USDA, several Clean Cities Coalitions, and over 30 Ag/Energy/Environmental organizations that support the FFV Awareness Campaign.

American Ethanol will be in the spotlight at the Martinsville Speedway NASCAR Sprint Cup Series race this weekend in Virginia.

The No. 33 Richard Childress Racing Chevrolet race car will feature a special-edition American Ethanol paint scheme at the race and will be driven by American Ethanol spokesman and recent Talladega race winner Clint Bowyer. In addition, the American Ethanol brand will be featured on-track and accompanied with a broadcast in-car camera on Sunday.

“This branded race car design raises American Ethanol’s profile in a powerful way, especially coming off Clint Bowyer’s win last week in Talladega,” said Tom Buis, CEO of Growth Energy. American Ethanol is a partnership between NASCAR, Growth Energy, and the National Corn Growers Association.

National Corn Growers Association NASCAR Advisory Committee Chair Martin Barbre says they are excited about the high profile ethanol will have in the upcoming race. “Of course, we again congratulate our spokesman on his major victory last week. Now, tens of millions of fans across the country will be keyed into Clint as he again shows the incredible performance of E15 as it fuels him back into victory lane again.”

All NASCAR series races this year have been powered by 15% ethanol. “The transition to E15 has been seamless and overwhelmingly positive for myself and my team, and I am honored to have American Ethanol on the No. 33 Chevrolet this weekend,” said Bowyer. “I support American farmers as they strive to develop energy independence for our country and I look forward to representing American Ethanol both on and off the track this weekend at Martinsville.”

The Martinsville Speedway Sprint Cup Series race will be on ESPN beginning at 1:30 Eastern at Martinsville (Virginia) Speedway.

Members of the Open Fuel Standard Coalition joined with Representatives Eliot Engel (D-NY) and John Shimkus (R-IL) to call for consumer choice at the pump during an Energy Security Roundtable and media event in Washington DC on Tuesday

The two congressmen, pictured here with former National Security Advisor Robert McFarlane, outlined their Open Fuel Standard Act (HR 1687) which would set a deadline of 2017 for automakers to stop making cars that run on only gasoline. After than point, all American made cars must be either flex fuel (capable of burning gasoline, ethanol or methanol or any combination of these), or powered by natural gas, hydrogen, biodiesel, plug-in electric, or fuel cell.

“By employing the Open Fuel Standard, we can create competition for petroleum on the open market with other types of fuel. We don’t have to wait for the perfect technology,” said Rep. Engel (center).

“Consumers should have a choice when they pull up to a refueling station,” Rep. Shimkus (right) added. “At a minimal cost, vehicles could be able to accept multiple fuels with consumers choosing based on price or even feedstock for the fuel.”At a minimal cost, vehicles could be able to accept multiple fuels with consumers choosing based on price or even feedstock for the fuel.”

Also at the event were NASCAR driver Kenny Wallace and representatives from the Renewable Fuels Association, the Methanol Institute and ACT! For America.

Purdue University researchers have found that dividing up corn stalks may be the way to conquer in the quest for cellulosic ethanol efficiency.

A research team discovered that when corn stover is processed to make ethanol, three distinct parts of it – the rind, pith and leaves – break down in different ways.

Cellulosic ethanol is created by using enzymes to extract sugars from cellulosic feedstocks, such as corn stover, grasses and woods, and then fermenting and distilling those sugars into fuels. Stover’s pith, the soft core that makes up more than half the weight of a corn stalk, is the easiest for enzymes to digest, according to the findings in two papers published in the journal Biotechnology and Bioengineering. Rind is the most difficult, while leaves fall in between. Significant amounts of lignin, the rigid compound in plant cell walls, make the cellulose resistant to hydrolosis, a process in which cellulose is broken down into sugars.

Read more here.

Colorado-based ZeaChem has expanded its board of directors and raises new capitol to move closer to commercial production of advanced biofuels and chemicals.

ZeaChem has raised $19 million in Series C financing, led by Birchmere Ventures, and partner Sean D.S. Sebastian has joined the ZeaChem board of directors. “As an industry leader in the advanced biofuels and bio-based chemicals industries, ZeaChem’s proven capability to produce economical and sustainable petroleum alternatives is an innovation we are pleased to add to our portfolio,” said Sebastian.

ZeaChem also added two independent members to the board. Ross Pillari spent 35 years with BP, including as chairman and chief executive officer of BP America and currently serves on the advisory board of CVC Capital Partners. Charles “Charlie” Shaver has three decades of experience in the chemicals industry, most recently serving as president of The TPC Group, Inc.

ZeaChem’s 250,000 GPY integrated demonstration biorefinery in Boardman, Oregon is scheduled to come on line yet this year. The company is now developing commercial biorefineries for the production of advanced biofuels and bio-based chemicals.

Our latest ZimmPoll asked the question, “Are Farm Show Smartphone Apps Helpful?” Although 55% said they had Never used one, 27% said Yes and only 18% said no. I think these results reflect the fact that these apps are new. I used several during the course of the year and some are more helpful than others. One of the features I like most is being able to open a show map to find where I am currently located and where I want to go to find a particular exhibitor. Have you used any of these apps? What did you like or wish was different about the ones you used?

Our new ZimmPoll is now live. We’re asking the question, “How do you view the new free trade agreements for U.S. ag?” What do you think? Take our poll and feel free to comment. Thank you.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

A new U.S. Department of Agriculture (USDA) report finds that the ethanol co-product known as distillers grains or DDGS is replacing even more corn and soybean meal in livestock and poultry feed rations than previously thought.

According to the report by USDA’s Economic Research Service (ERS), “We found that, on average, for the past 5 crop years (2006/07-2010/11), 1 mt of distillers’ grains substitutes for about 1.22 mt of corn and soybean meal combined in the United States.”

The report also noted that “Feed market impacts of increased corn use for ethanol are smaller than that indicated by the total amount of corn used for ethanol production because of DDGS.” In fact, ERS found the amount of feed (corn and soybean meal) replaced by the DDGS represents nearly 40 percent (on a weight basis) of the corn used in the associated ethanol production process for a given crop year.

Read the report here.

“The value of the animal feed produced by the ethanol industry has long been misunderstood, understated and misrepresented,” said Geoff Cooper, Renewable Fuels Association Vice President of Research & Analysis. “Distillers grains continue to be the industry’s best kept secret, despite the fact that we are producing tremendous volumes of this high value feed product today. DDGS and other ethanol feed products significantly reduce the need for corn and soybean meal in animal feed rations. Over the past several years, distillers grains have been one of the most economically competitive sources of energy and protein available on the world feed market. While some critics of the ethanol industry attempt to downplay the role of DDGS, the facts simply can’t be ignored.”

RFA believes the report has important implications for discussions regarding ethanol’s impact on feed grains availability, feed prices, land use effects, and the greenhouse gas (GHG) impacts of producing corn ethanol.

Read more about the report from RFA here.