Domestic Fuel

The Minnesota Agri-Growth Council is hosting a celebration of America’s food, agriculture and energy industries during the second night of the Republican National Convention in the Twin Cities.

AgNite is a non-partisan event independent from the RNC being coordinated by the council with the help of numerous sponsors, including the ethanol industry under the auspices of the Renewable Fuels Association. The companies and organizations will have exhibits and information available for the thousands of visitors expected, including delegates and policy makers attending the convention. The Ethanol Promotion and Information Council has provided the Team Ethanol show car for display on the floor during the AgNite event. Minnesota is the nation’s fourth largest ethanol producing state, with 17 plants producing 1.1 billion gallons per year.

Organizers are expecting as many as 4,000 people to attend the invitation-only event which is being held Tuesday, Sept. 2, from 8 pm to 2 am in the historic Minneapolis Depot.

Analysts with a major agricultural financial institution say alternative fuels are just one of the many factors causing higher food prices.

Karol Aure-Flynn, executive director of the Rabobank Food & Agribusiness Research and Advisory department, says “food versus fuel” is basically a misleading sound bite. “The fallacy of the headline is that there is a direct competition between the two; that it’s either or. The reality is that strong global economic growth has changed the demand equation for U.S. commodities,” he said in a recent Rabobank podcast. “The depreciation of the U.S. dollar, soaring energy costs and changing trade policies are also contributing to the cost of commodities, which in turn is raising the cost of food — it’s not just fuel, it’s a combination of all of these factors.”

Aure-Flynn also notes that while prices at the farm level have increased this year, they have been outpaced by production costs for farmers.

“Farmers’ profitability doesn’t change retail prices. And farmers’ profitability isn’t guaranteed by high grain prices. The same factors that are lifting grain prices are lifting production costs,” said Aure-Flynn. “So, yes, the farm price index is at 162 percent of what it was 1990-1992, but at the same time the price index measuring what farmers pay — for services, farm wages — is 189 percent of base.”

Rabobank is a global financial services leader providing institutional and retail banking and agricultural finance solutions in key markets around the world.

Monsanto was represented at this morning’s ethanol press conference at the Iowa Speedway by Troy Hobbs, Corn Biofuels Strategy Lead. He started his comments explaining that the company’s mission is to drive productivity in the agricultural sector. He spoke to how quickly they’ve been able to increase the per acre yield in corn with their research on seed and traits.

With their Processor Preferred program they’re working with ethanol plants to make sure they’re getting the corn that is best suited to their production. He also made a good point about how ethanol production is helping keep American dollars in America which is good for our economy.

You can listen to Troy’s comments here: iowa-08-hobbs.mp3

Iowa Corn Indy 250 Photo Album

Podcast: Play in new window | Download (1.9MB)

Pioneer Hi-Bred is sponsoring the Iowa Corn Indy 250 again this year and I spoke to Russ Sanders, Marketing Director, about how the company is involved. He’s pictured here (left) with Team Ethanol driver, Ryan Hunter-Reay and EPIC Director of Communications, Joanna Schroeder.

Russ says that the company sees a great opportunity in the biofuels arena and their participation in this race provides them with a great opportunity to get the message out about the positive benefits of a fuel like ethanol.

You can listen to my interview with Russ here: iowa-08-sanders.mp3

Or watch it on this video:

Iowa Corn Indy 250 Photo Album

Podcast: Play in new window | Download (1.2MB)

Leaders of five major agricultural organizations and the head of the Renewable Fuels Association joined together Wednesday to try and dispel many of the accusations that have been levied against biofuels in recent months and emphasize the positive contributions of ethanol in particular.

“Instead of using ethanol as a scapegoat for increased food prices, we should be having a discussion about the business, economic and policy issues that are connected with the world of $130 plus per barrel oil,” said American Farm Bureau Federation president Bob Stallman. He said the country’s Renewable Fuels Standard passed by Congress in December was the “right thing to do and continues to be the right thing to do.”

Stallman was joined by Tom Buis of the National Farmers Union, in a rare show of unity for the two general farm organizations that are frequently at odds over policy issues. Buis listed his top six myths about higher prices being blamed on ethanol, including Mexican tortillas, pasta, rice, bagels, beer and movie theater tickets. “I’m tired of debating these myths,” said Buis. “The last thing we need to do on renewable energy is backslide again because 30 years from now we will be back talking again about our dependence on imported energy.”

Other farmer leaders from the National Corn Growers Association, National Association of Wheat Growers, and the National Sorghum Producers participated in the conference call with members of the news media, fielding questions from reporters at media outlets ranging from Reuters to the Capitol Press in Idaho.

Claims that ethanol production drives up gas prices don’t hold up after a study from Iowa State University. ISU’s Center for Agricultural and Rural Development has taken a look at the impact of ethanol production on U.S. and regional gas prices and found that ethanol production actually lowers prices at the pump.

Using pooled regional time-series data and panel data estimation, we quantify the impact of monthly ethanol production on monthly retail regular gasoline prices. This analysis suggests that the growth in ethanol production has caused retail gasoline prices to be $0.29 to $0.40 per gallon lower than would otherwise have been the case. The analysis shows that the negative impact of ethanol on gasoline prices varies considerably across regions. The Midwest region has the biggest impact, at $0.39/gallon, while the Rocky Mountain region had the smallest impact, at $0.17/gallon. The results also indicate that ethanol production has significantly reduced the profit margin of the oil refinery industry. The results are robust with respect to alternative model specifications.

The Ethanol Promotion and Information Council has gathered data from multiple sources that debunk claims that America’s renewable fuels are a large player in soaring food prices. Toni Nuernberg, the Executive Director of EPIC wants to spread the word that changing the nation’s renewable fuels standard is not the answer to driving down global food costs.

Recent calls to reduce the renewable fuels standard (RFS) seem like an easy and immediate fix to world food shortages. However, the factors influencing global food prices and supplies are a result of converging global production and demand issues that go far beyond corn-based ethanol. Changing U.S. energy policy will not provide short-term relief on the food supply and decrease food prices as many expect. In fact, relaxing the renewable fuels standard mandate actually may escalate food prices now and in the future by driving fuel prices even higher.

The industry is fueling research into cellulosic ethanol produced from feedstocks such as switch grass and other non-edible renewable biomass. Corn-based ethanol is a solution that is here now, available in our current infrastructure and making a difference in the price of fuel.

China, not biofuels, are to blame for rising food costs. At least, that’s what The Biofuels Digest suggests. The online publication says their study finds that for every bushel of grain used to make U.S. ethanol, six are used to support Chinese meat demand.

A change in Chinese meat consumption habits since 1995 is diverting eight billion bushels of grain per year to livestock feed and could empty global grain stocks by September 2010, according to a new study from Biofuels Digest.

“If the Chinese people had consumed the same amount of meat, per person, in 2007 as in 1995, there would have been enough grain left over to support 927 million people with food for an entire year,” said Lane.
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The U.S. isn’t the only country in North America that’s trying to fuel change in fuel standards. The Canadian Renewable Fuels Association says a new poll suggests Canadians are just as bio-conscious…

A new nationwide poll shows that Canadians overwhelmingly support the national renewable fuels strategy to blend biofuels like ethanol and biodiesel in Canada’s fuel supply.

Currently in Canada we are able to produce roughly one billion litres of ethanol and 100 million litres of biodiesel. By no later than 2012 that is expected to increase to more than 2.5 billion litres of ethanol and more than 500 million litres of biodiesel. The renewable fuels industry is investing more than $1.5 billion in building production capacity in Canada and is helping to create 10,000 direct and indirect jobs and generating $600 million in annual economic activity.

As technology unleashes more and more energy possibilities from more and more crops, it can get a little confusing as to which plants can do what. Ceres, Inc. plans to clarify bio-friendly seeds with its new bioenergy seed brand.

Energy crop company Ceres, Inc. plans to market its agricultural seeds and traits under the trade name Blade Energy Crops in the United States. Company president and CEO Richard Hamilton unveiled the new brand at the BIO World Congress on Industrial Biotechnology in Chicago earlier today.

The company says the Blade name was inspired by its first crops, switchgrass, sorghum and canes, which are from a category of closely related grass species, known as C4 grasses. C4 grasses are the natural world’s most efficient engines of photosynthesis, the process by which plants store solar energy in the form of carbohydrates. New technologies have made it possible to convert the most abundant form of these energy-rich molecules, called cellulose, into renewable fuels.

The state of sustainable agriculture in developing countries will be one of the main issues addressed at the BIO International Convention this summer. The Biotechnology Industry Organization is hosting the convention in San Diego from Tuesday, June 17 through Friday, June 20.

Biotechnology leaders from around the globe will be descending upon San Diego, one of the leading biotech hubs in the world, to discuss the most pressing issues and share their unique perspectives. In addition, there will be a total of 36 regional and country pavilions within the BIO Exhibition with several new pavilions, including Argentina, Brazil, Chile, Dubai, and South Africa.

This year’s keynote speakers include Gen. Colin Powell, J. Craig Venter, Ph.D., and Gov. Arnold Schwarzenegger.
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There’s no question that there’s been a media barrage giving ethanol a bad rap. Just today, the Kansas City Star’s cover story focused on criticism of the alternative fuel. That story came just in time for today’s Roadrunner Turbo Indy 300. The entire IndyCar Series runs on nearly 100 percent ethanol fuel. And, leading representatives of the ethanol industry say there’s a reason why the IndyCar series backs ethanol. In fact, they say there are numerous reasons why. More importantly, they say there are a handful of reasons why consumers should support ethanol, despite the media’s recent ethanol scapegoating for rising food and fuel costs. The Ethanol Promotion and Information Council hosted a panel discussion at the Kansas Speedway today to address the recent abundance of “misinformation” about ethanol.

The panel included EPIC’s new Executive Director Toni Nuernberg, CEO and President of ICM Dave Vander Griend, Mike Sobetski with LifeLine Foods, and Greg Krissek with ICM. They argue that ethanol has a negligible impact on food prices, specifically corn. They talk about new technology that proves there isn’t a debate about “food versus fuel” but a discussion about “food and fuel.” And, they say that, despite what critics in the media suggest, ethanol actually keeps gas prices lower.

You can listen to the entire panel discussion here:
kc-epic-08.mp3

2008 Roadrunner Turbo Indy 300 Photo Album

Podcast: Play in new window | Download (36.8MB)

Cellulosic ethanol is gaining ground… and CleanTech Biofuels is the next in line to research how to turn waste into fuel.

CleanTech Biofuels is pleased to announce that it has engaged Hazen Research, Inc to construct and operate the pre-commercial stages of our Municipal Solid Waste to Ethanol project at Hazen’s eight acre research facility in Golden, Colorado.

Hazen Research has an experienced and competent staff supported by the laboratory and pilot plant facilities necessary to apply the most appropriate technology to evaluate any industrial, commercial, and environmental issues we may encounter as our project moves from development to commercialization. They maintain all permits, governmental (Federal, State and Local) permits, licenses, and other approvals necessary to complete this project.

This week’s Chemical of Innovations podcast from BASF explores how consumers can make exhaust fumes of their diesel vehicles cleaner through catalysts technology.

In terms of design a diesel is much more efficient: It uses less fuel and emits less CO2. To purify diesel exhaust fumes is a challenge and only possible because manufacturers of catalytic converters like BASF Catalysts are continually improving their exhaust gas after treatment systems.

Direct subscription via RSS-Feed or iTunes (search for “basf”): http://corporate.basf.com/en/podcast/innovation.xml

Americans might soon be fueling up with biodiesel from the Phillipines. Abundant Biofuels Corporation has received the green light for developing 300 million gallons of biodiesel fuel from the island of Mindanao each year.

The Supreme Council of Datus Alimaong has reached agreement with Monterey, CA-based Abundant Biofuels Corporation to develop more than 1.2 million acres of ancestral domain for production of biodiesel from Jatropha curcas in underused Lumad lands on the island of Mindanao.

Under its groundbreaking agreement, Abundant Biofuels will deploy part of its profits for infrastructure development on the island of Mindanao, including improved housing, medical care programs, better schoolroom facilities and resources for people to affirm cultural identities such as music, dance, food, attire and drama.