Domestic Fuel

AAA has already made up its mind about increasing amount of ethanol allowed in gasoline to 15 percent, but they want to know what you think.

The headline for an article posted by the automotive organization last week reads “Bailout Blend: Bad for Your Engine?” and proceeds to bash ethanol as being bad for consumers.

“How would you feel about a fuel additive that could cost you more money and screw up your engine? If the ethanol industry has its way, that’s just what you might get,” they begin, calling an increase to E15 “a bailout for the ethanol industry that may come at the expense of drivers.”

At the end of the one-sided article, AAA asks for your opinion. “Do you think adding E15 to the nation’s fuel supply is a good idea? Log onto AAA.com/Poll and take our poll.” Not surprisingly, the poll is running two to one against E15. Maybe it’s because the article doesn’t say anything about the EPA findings that ethanol is better than conventional gasoline when it comes to greenhouse gas emissions, reducing them by at least 20 percent. AAA says, “Producing ethanol is an energy-intensive process that still results in greenhouse-gas emissions. It won’t save the planet as it still produces pollutants.” It may not save the planet, but it can help cut greenhouse gas emissions by cutting at least some of our gasoline use.

As far as engine issues and mileage concerns, Brazil runs up to 25% ethanol in its cars with no problems, and they consider energy independence to be more important than a few less miles to the gallon.

*post update*
If the link to the poll in the post doesn’t work, try the link in the AAA article. Apparently after you vote, you can’t go back to that link at all, so I can’t get the poll link to add to this post.

The mission of Harness Nature (HN) is to design, market, install, and service renewable, sustainable, alternative energy sources in the Midwest, which is why they were exhibiting at the Iowa Power Farming Show this week in Des Moines.

“We’re a renewable energy company based out of Des Moines,” says Harness Nature Team member Randy Skeie, pictured here on the left with HN owner Dan Broderick on right. “Most of our focus here in Iowa is on wind because it’s an abundant resource.”

Skeie says wind energy is growing in the Midwest. “Iowa is currently number two in terms of wind production in the nation, behind Texas, so we’re a leader in that regard,” he said.

Harness Nature works with homeowners, farmers and businesses to help them incorporate renewable energy sources and Skeie says there are incentives and stimulus dollars available to do that.

Listen to or download Chuck Zimmerman’s interview with Randy Skeie from the Iowa Power Farming Show.

Podcast: Play in new window | Download (2.1MB)

Industry reaction to the Environmental Protection Agency announcement today of much-delayed rules for the second phase of the Renewable Fuel Standard has come quickly and is mostly positive.

In this edition of “The Ethanol Report” podcast, Matt Hartwig with the Renewable Fuels Association talks about their reaction and what the rule means for the industry.

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

Listen to or download the podcast here:

Podcast: Play in new window | Download (4.8MB)

Renewable fuels are the backbone of Iowa’s economy, according to a report released last week by the Iowa Renewable Fuels Association (IRFA).

According to the report, “Contribution of the Biofuels Industry to the Economy of Iowa,” ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa and makes a significant contribution to the state’s economy.

* Accounts for nearly $11.5 billion, or about 8 percent, to Iowa GDP
* Generates $2.3 billion of household income for Iowa households
* Supports more than 70,000 jobs through the entire Iowa economy
* Boosts state tax revenue by $532 million.

“That is an awesome success story,” said IRFA Executive Director Monte Shaw in his address at the 4th Annual Iowa Renewable Summit. “At the same time, we must not rest on our laurels. Iowa and the nation must move quickly to realize the full promise renewable fuels represent.”

Shaw says that means approving ethanol blends up to 15 percent nationwide and for Iowa, urging the Iowa legislature to enact an E10 Fuel Quality Standard so that all gasoline in the state would contain at least 10 percent ethanol. “Why shouldn’t Iowa say that E0 poses too high a cost to our economy and our energy independence? Shouldn’t Iowa lead the way to make E10 the standard fuel with E15 available for those who choose it?” Shaw questioned.

Shaw also called on Congress to restore the federal blenders tax credit for biodiesel and for EPA to implement the federal RFS2 biodiesel usage requirement. “If we can couple those two federal actions with a B5 fuel quality standard here in Iowa, it will go a long way toward restarting Iowa’s 15 biodiesel plants,” he said.

Leaders from DuPont Danisco Cellulosic Ethanol (DDCE), University of Tennessee and Genera Energy gathered on Friday in Vonore, Tennessee to cut the ribbon on a new cellulosic ethanol demonstration facility. The 74,000-square-foot plant has now started producing ethanol from agricultural residue and bioenergy crops, including corncobs and switchgrass.

During the grand opening celebration, Kelly Tiller, CEO of Genera Energy and director of external operations for the UT Office of Bioenergy Programs, said, “The University of Tennessee Biofuels Initiative is the only fully integrated program that is working with farmers and agricultural industry to reliably supply the necessary feedstock so biorefineries can produce plentiful, affordable, renewable and sustainable fuels.” She said plans are for Tennessee farmers to place an additional 4,000 acres of switchgrass into production this spring, bringing the total production in the state to nearly 7,000 acres of the dedicated energy crop.

The state-of-the-art facility in Vonore has capacity to produce 250,000 gallons of ethanol annually, though its focus is on optimizing technologies for large-scale production.

Verenium and BP are extending their joint development contract for another month as they continue more long term negotiations in the partnership to develop and commercialize cellulosic ethanol.

The two companies have extended the initial 18-month joint development program established in August 2008, which was scheduled today until March 1, 2010.

BP and Verenium will continue their ongoing joint development work to accelerate the development and commercialization of cellulosic ethanol, while the two parties continue to negotiate the terms of a multi-year extension of their collaboration program. Verenium will receive an additional $2.5 million from BP to co-fund various scientific and technical initiatives for the month of February.

November set yet another record for ethanol production in the United States.

According to the latest figures from the Energy Information Administration (EIA), U.S. ethanol production hit a record high in November 2009 of 761,000 barrels per day (b/d). That is a 93,000 barrel increase from the previous year.

Ethanol demand, as calculated by the Renewable Fuels Association, also reached an all time high at 781,000 b/d in November, up from 683,000 b/d a year ago. Ethanol demand is averaging 702,000 b/d through November.

EIA also reports fuel ethanol imports of 12 million gallons in September.

Ethanol advocacy organization Growth Energy will be working with automotive technology provider Ricardo to optimize flexible fuel vehicles with ethanol boosted direct injection (EBDI). The ten month project will use Ricardo’s EBDI flex fuel engine, developed from a production V6 gasoline engine, to re-power two GMC Sierra 3500 HD pickup trucks to demonstrate how highly optimized engines fueled on ethanol can provide a cost-effective, low-carbon alternative to fossil fuel.

Making the announcement at the Washington Auto Show Tuesday morning were Ricardo President Kent Niederhofer (left) and Growth Energy Co-Chairman (Ret.) Gen. Wesley Clark, pictured here with the engine. “EBDI engine technology offers a uniquely American solution for a wide range of vehicle applications, combining extreme optimized flex-fuel engine technology offering high fuel economy, low emissions and uncompromised performance using a source of renewable fuel produced here in the United States,” said Niederhofer.

Clark added, “Through this project with Ricardo we aim to be able to put potential customers in the driving seat and demonstrate to them that with EBDI technology, ethanol can deliver performance and fuel economy and offers an attractive and sustainable transport solution using an American produced renewable fuel. Consumers should have a choice at the pump – and domestic ethanol should be one of those options for fuel.”

Read more from Growth Energy.

Most Americans say they would like to know where their fuel comes from, according to a new poll by Growth Energy. The poll of 1200 registered voters found that 68 percent support country-of-origin labeling on gasoline, 15 percent oppose and 17 percent don’t know.

The polling data was released in conjunction with an announcement by U.S. Rep. Bruce Braley, D-Iowa, that he intends to introduce legislation mandating that all gasoline sold in the U.S. carry country-of-origin labeling (COOL). Growth Energy launched a Labelmyfuel.com initiative last August at Farm Progress Show, in an effort to create more market transparency for American consumers of foreign petroleum.

“Congressman Braley’s bill would let U.S. drivers know where they are sending their dollars when they gas up. If the oil is from Venezuela, or Abu Dhabi, or Saudi Arabia, let people know. Americans deserve to know where their money goes – whether it stays here or goes overseas,” said Tom Buis, CEO of Growth Energy. “Knowing that 68 percent of people in America support COOL for Fuel tells us that Congressman Braley is on the right track.”

According to Growth Energy, as much as 60 percent of all American gasoline is refined from overseas oil at a cost to taxpayers of at least $50 billion to protect oil shipping routes.

Motorists in Sioux Falls, SD now have more fuel choices at the pump with the installation of four new ethanol blender pumps at a Kings Mart gas station in the city.

Through a joint effort between the American Coalition for Ethanol (ACE) and the South Dakota Corn Utilization Council (SDCUC), the station now offers a variety of fuel blends including unleaded gasoline and E10, and E30 and E85 for Flexible Fuel Vehicles (FFVs).

“This is the first location in Sioux Falls to offer a blend of 30 percent ethanol for FFV owners,” said Ron Lamberty with ACE. “The important investments made by the owners of King’s Mart, and the South Dakota Corn Utilization Council with the assistance of ACE and the “Blend Your Own Ethanol” campaign, have provided consumers with another ethanol fueling option in Sioux Falls.”

The BYO Ethanol campaign was launched last year as a partnership between ACE, the Renewable Fuels Association, the National Corn Growers Association and leading corn-producing states such as South Dakota. The campaign works to show gas station owners the benefits of blending ethanol and using blender pumps to provide choices for motorists.

The Sioux Falls blender pump location joins 40 other locations across South Dakota and around 150 nationwide. ACE offers an on-line map of blender pump sites.