Domestic Fuel

The IZOD IndyCar Series makes its debut this weekend in South America with the Sao Paulo Indy 300 powered by Brazilian ethanol.

The Brazilian Sugarcane Industry Association (UNICA) has renewed its fuel supply agreement with the Indy Racing League for the 2010 IZOD IndyCar Series season, which opens on Sunday, March 14, with a race in Brazil’s largest city, São Paulo. Under the new agreement, the IZOD IndyCar Series will continue to utilize sugarcane ethanol to fuel its race cars, including at its signature event, the Indianapolis 500.

At the inaugural Sao Paulo Indy 300, to be run on a street circuit in São Paulo, Brazil, the ethanol will be supplied by one of UNICA’s member companies, Copersucar S.A., Brazil’s largest sugar, ethanol and bioenergy conglomerate, with 36 associated sugar and ethanol mills.

The preliminary agenda for the 2010 Fuel Ethanol Workshop has been announced, along with incentive to register early. Register by March 16 to save $200 and be entered in a drawing to win an iPod Touch. The winner will be announced on March 17.

The 26th Annual Fuel Ethanol Workshop & Expo features more than 120 industry professionals delivering presentations across five topic tracks. This year’s line-up was assembled from over 240 abstracts which were vigorously reviewed by a panel of nearly 40 industry professionals. The result is a compilation of presenters addressing our industry’s most current concepts, processes, technologies, challenges, and opportunities. Topics as varied as plant optimization, advances in fermentation, carbon monetization, and industry salary trends are all available in this one, content-packed event.

The 2010 FEW will be held June 14-16 at the America’s Center in St. Louis.

Agriculture Secretary Tom Vilsack today announced that Fiscal Year 2009 funding is once again available again for three USDA Farm Bill programs to promote increased production of biomass and bioenergy.

Applications for the Biorefinery Assistance Program, which uses loan guarantees to develop, construct, and retrofit commercial-scale biorefineries, must be received by June 1, 2010. Applications are also being accepted for remaining FY 2009 funding under the Repowering Assistance Program, which provides for payments to biorefineries in existence when the Farm Bill was passed to replace the use of fossil fuels in their operations with renewable energy from biomass. Biorefineries interested in obtaining funding must apply by June 15, 2010.

Finally, those biomass producers eligible under the Bioenergy Program for Advanced Biofuels may also apply to receive payment from remaining FY 2009 funds. Applications must be received by May 30, 2010. Under this program, payments are made to eligible producers in rural areas to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat.

At the recent Commodity Classic, Secretary Vilsack noted that the administration is focused on expanding the biofuels industry. “We’re going to make sure that it is a national industry, not just focused in one particular area, one particular region, or one particular feed stock. There are enormous opportunities here in all parts of the country. Enormous opportunities for farmers and ranchers, enormous opportunities for rural America. And, there needs to be a concerted effort in growing and expanding this industry,” Vilsack told the crowd of more than 4,000 meeting in Anaheim, Calif. “That’s part of the strategy of USDA. So, we’re putting resources behind this, and we’re using our rural development resources to help build these refineries. We’re using our energy title of the farm bill to promote payments to farmers for feed stocks, to help build refineries, to retrofit existing refineries, to put people to work in rural communities.”

Listen to or download Vilsack’s speech from Commodity Classic here:

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Growth Energy’s Market Development team is now offering funding to retailers to assist in ethanol blender pump infrastructure. Grants of $2,500 and $5,000 are now available on a first come, first serve basis to vendors who wish to install new or convert existing equipment for ethanol fueling. These grants are in addition to any Federal or state grants or incentives a retailer may be eligible.

“There are over 8 million flexible fuel vehicles across the country with more being produced in each model year. Unfortunately, of the 161,000 gasoline stations in the U.S. only 2,200 offer E85 where FFVs may fuel up with a high level blend of domestic, renewable fuel such at 85% ethanol……….another 132 offer mid-level blends,” said Growth Energy Market Development VP, Phil Lampert. “Growth Energy is pleased to offer this assistance to retailers across the nation and we hope that they avail themselves of this unique opportunity.”

Growth Energy can also offer pump imaging and technical assistance along with the grants. You can find the two page outline of the Infrastructure Development Program by clicking here. To apply for the funding, click here.

The world’s largest ethanol producer plans to decrease water use in the production of ethanol by 22 percent over the next five years, which would result in a savings of one billion gallons of water per year.

In a presentation to employees today, POET CEO Jeff Broin said the company is committed to producing ethanol as sustainably as possible and minimizing its impact on natural resources.

Water reduction is the first goal of Ingreenuity, POET’s new initiative to improve the environmental performance of ethanol. The reductions will come primarily through installing a proprietary process developed by POET engineers that recycles cooling water rather than discharging it. The process has recently been installed in three POET Biorefining locations which now average 2 to 2.5 gallons of water per gallon of ethanol.

To kick off the initiative, Broin announced that the POET Foundation has committed more than $420,000 to the non-profit Global Health Ministries (GHM) over the same five-year period as POET’s water reduction goal. A portion of the funds will help GHM repair, construct and maintain 90 wells in Nigeria that that will give more than 300,000 people access to pure water.

A Colorado-based firm with a planned biorefinery located near Soperton, Georgia is the recipient of a loan guaranteed by USDA Rural Development to make cellulosic biofuel from wood chips, according to a USDA announcement. The finalized deal with Range Fuels was first announced last year and represents the first ever loan guarantee by USDA to a commercial-scale cellulosic biofuel plant. This project is expected to provide biorefinery jobs, construction jobs and support the timber industry.

“USDA’s investment in the construction of Range Fuels’ commercial facility, which will produce cellulosic biofuel from non-food biomass, such as wood chips, demonstrates the Obama Administration’s goal to make the United States a leader in renewable energy production and furthers the President’s ongoing efforts to bring jobs to rural communities,” said Under Secretary for Rural Development Dallas Tonsager. “USDA is proud to work with the lender and the private sector to bring economic opportunity to rural areas.”

The $80 million loan, being made by AgSouth Farm Credit to Range Fuels, Inc., is being guaranteed through USDA’s Biorefinery Assistance Program authorized by the Food, Conservation, and Energy Act of 2008 and administered by USDA Rural Development. When fully operational, the plant is expected to produce an estimated 20 million gallons of cellulosic ethanol per year. USDA announced a conditional commitment to provide the loan guarantee for Range Fuels in January, 2009.

Representatives from the University of Florida, Buckeye Technologies Inc. and the Florida Legislature broke ground for a new pilot plant to produce ethanol from cellulosic biomass.

Funded by a $20 million appropriation from the Florida Legislature, the plant will be built at the Perry, Fla. facility of Buckeye Technologies Inc., a manufacturer and worldwide distributor of cellulose-based specialty products made from wood and cotton. It is scheduled to be operational by spring 2011.

Much of the plant’s research will be based on the work of Lonnie Ingram, UF distinguished professor of microbiology and cell science and director of the Florida Center for Renewable Chemicals and Fuels. Ingram engineered an E. coli bacterium that breaks down inedible plant material into sugars that can be processed into fuel-grade cellulosic ethanol. Variations of the technology are already at work in fuel plants in Louisiana and Japan.

Click on photo, courtesy of IFAS news, for a larger view. Pictured left to right: Lonnie Ingram, UF distinguished professor of microbiology and cell science; Leonard Bembry, Florida House of Representatives District 10; Ralph Poppell, Florida House of Representatives District 29; Debbie Mayfield, Florida House of Representatives District 80; John Crowe, Buckeye Technologies, Inc. chief executive officer; Bernie Machen, University of Florida president; Cynthia O’Connell, University of Florida Board of Trustees; Larry Arrington, University of Florida interim senior vice president for agriculture and natural resources.

Marty Lyons, Chief Commercial Officer with Hawkeye Gold, LLC has resigned from the Iowa ethanol company to pursue other interests. Lyons worked for Hawkeye Gold since 2007, helping to create and expand marketing opportunities for one of the nation’s largest ethanol producers. Previously, Lyons was the Senior Vice-President, Ethanol, Sweetners, and Starches at Archer Daniels Midland in Decatur, Illinois.

“It was a pleasure to work with the team at Hawkeye Gold and I wish them all the best in the future,” said Lyons. “I will miss my hard working colleagues but am excited about the prospect to pursue other opportunities and continue my involvement in the renewable fuels industry. Clearly, plants need more control of their business as they manage their inputs in these volatile markets. I am focused on looking for ways to bring that necessary control back to the plants.”

Lyons and his family will be relocating to the St. Louis area while looking to pursue other opportunities. Lyons has spent more than 30 years in the grain and renewable fuels industries, working to improve efficiencies and business opportunities through more streamlined and integrated business activities.

Ethanol issues were in the spotlight when National Corn Growers Association president Darrin Ihnen of South Dakota took the stage at the Commodity Classic general session on Friday.

Ihnen talked about the importance of using higher blends of ethanol in the fuel supply. “The EPA is studying the issue and everything they’ve indicated to this date looks very promising,” said Ihnen. “They said it will probably be late summer now and we are very hopeful it will come then.” He says that is a top priority for corn growers and “this is a game changer” that will give them an opportunity to use more corn.

Ihnen also talked about the climate change issue and other important issues during an interview with session moderator Mark Mayfield which is available in the player below.

Commodity Classic Photo Album

Podcast: Play in new window | Download (3.0MB)

During the general session of the 2010 Commodity Classic, American Soybean Association president Rob Joslin, who stressed the importance of getting the biodiesel tax credit back in place.

“We need it now,” Joslin said. “It’s costing U.S. soybean farmers 25 cents for every bushel. On my 500 acres of soybeans, that’s over $6000 a year. Couple that with all the jobs loss, that’s our goal right now.”

Joslin says the tax credit is back in the second jobs bill that is being considered by the Senate right now. “I kinda feel like a bride that goes to the altar that comes away without a ring. We’ve been to the altar 2 or 3 times and we haven’t gotten a ring on our finger yet.”

Rob was interviewed by session moderator Mark Mayfield about this issue and others important to soybean producers – listen to that exchange below.

Commodity Classic Photo Album

Podcast: Play in new window | Download (2.8MB)