Domestic Fuel

In 1995, the soybean checkoff funded key research on soy biodiesel quality. The same year, Yellowstone National Park began serving as the soy biodiesel testing ground for the National Park Service. A decade later, the market for soy biodiesel is flourishing, and its use has spread to more than 20 other national parks and among thousands of other diesel users such as farmers and truckers.

United Soybean Board director Chuck Myers of Nebraska and Jim Evanoff, Environmental Manager for Yellowstone National Park held a press conference Tuesday from Jackson Lake Lodge in Grand Teton National Park to talk about the use of biodiesel in our national parks.

“We’re here to recognize ten-plus years of successful use of biodiesel in Yellowstone National Park and Grand Teton National Park,” said Myers. “It confirms that biodiesel can be used successfully in one of the harshest all weather climates in the United States.”

“Yellowstone, being the world’s first national park, we feel an obligation to be first at doing the right thing environmentally,” Evanoff said. “The most successful has been the introduction and advancement of biodegradable fuels in Yellowstone Park.”

You can listen to the opening statements of Myers and Evanoff here: Biodiesel Parks (6 min MP3)

According to the state of Montana, the use of biodiesel by Yellowstone has reduced the amount of carbon dioxide emissions by 500 tons per year.

The use of biodiesel in the National Park Service now includes 23 parks nationwide with over 1,000 different diesel applications including conventional diesel vehicles, boats, heavy equipment, and stationery applications such as boilers and stand-by generators. Blends range from 2 percent to 100 percent biodiesel.

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Biodiesel’s role in improving air quality was the focus of a lung association forum last week, according to a release from the National Biodiesel Board.

Leaders of health and environmental organizations met with government officials and industry representatives at the first Air Quality and Alternative Transportation Fuel Forum, where they learned about the important role biodiesel can play in reducing harmful emissions and improving air quality and human health. Hosted by American Lung Association of the District of Columbia, American Lung Association of the Upper Midwest and American Lung Association of the Southwest, the Forum was held at the National Press Club in Washington, DC.

At the forum, Dr. Robert McCormick, U.S. Department of Energy National Renewable Energy Laboratory Principal Engineer, presented the latest biodiesel emissions data, reporting that a blend of 20 percent biodiesel (B20) can reduce particulate matter emissions by more than 20% based on heavy duty vehicle testing, that biodiesel blends significantly reduce toxic compound emissions and that use of B20 can reduce life-cycle carbon dioxide emissions by 19%.

On Thursday a number of organizations got together at Snell Motors in Mankato, MN for the “Ethanol and Biodiesel Expo – Takin’ it to the Streets.” Pictured is Snell Motors head, Todd Snell being interviewed by local media.

This was a full day of activities that included multiple live broadcasts with area media, a legislative roundtable discussion, tours of the Northstar Ethanol Plant, numerous presentations by representatives from the ethanol and biodiesel industries and a guest appearance from Ultra Marathoner, Tom Andrews who ran from the Expo to the Northstar plant. That’s what marathoners do don’t you know.

Our sponsor, the Ethanol Promotion and Information Council was also one of the sponsors for this event and supplied us with this photo. On hand there was EPIC’s Reece Nanfito. Thanks Reece. It sounds live a very well attended event, showing the strong public support for biofuels.

USDA Chief Economist Keith Collins testified before the Senate Committee on Environment and Public Works this week about the implications of the growing biofuels industry on American agriculture.

Collins first noted that ethanol production has increased 150 percent since 2000, using about 14 percent of the US corn crop last year to produce 4 billion gallons of ethanol.

Collins also addressed the fact that while ethanol uses corn that may normally go to livestock feed, it does produce feed in the form of distillers grains. “DDGS can be used in livestock feed rations as a supply of both energy and protein. About one-third of the corn used in the production of ethanol is available as a feed in the form of coproducts feeds from dry mill ethanol plants,” he said. Limitations to using the by-product include quality concerns and drying, handling and shipping costs.

Collins goes into much detail about how ethanol must be competitive with gasoline in the marketplace. “A combination of declining gasoline prices, sharply rising corn prices, or a decline in the price premium ethanol has had relative to gasoline could curtail the expansion in ethanol production,” he stated.
He discusses corn prices, which he notes have only surpassed $3.00 a bushel four times in recent years. His analysis suggests that “corn prices will not discourage ethanol expansion unless corn prices increase to well beyond previous record-high levels.”

Collins next draws a series of conclusions about the ability of agricultural markets to adjust to rapid increases in biofuel production, which include:

1. Ethanol production will exceed expectations and could reach 10 billion gallons by 2010.
2. Gas and ethanol prices are likely to stay high enough in the near term to maintain expansion.
3. Corn ethanol returns are high enough to support a wide range of prices.
4. Corn prices will likely hit record highs in next 5-6 years.
5. Ethanol plants can continue to operate profitably even with higher corn prices.
6. US corn acreage needs to increase by about 5.5 million acres to 90 million.
7. CRP acres could be used to grow corn sustainably.
8. Other countries will likely expand corn production and exports.
9. With tighter stocks, corn will be more susceptible to market disruptions.
10. Corn ethanol alone cannot greatly reduce U.S. dependence on crude oil imports.
11. Cellulosic ethanol production appears to be the best renewable alternative.
12. Ethanol growth is manageable in the near future.

Collins takes a few minutes to discuss biodiesel, concluding that rapidly increasing demand for biodiesel will tend to push feedstock prices up, causing production costs to rise. He says, “For the 2005/06 crop year, biodiesel production accounted for 5 percent of soybean oil use, and for 2006/07, biodiesel is expected to account for 2.6 billion pounds of soybean oil or 13 percent of total soybean oil use.”

Lots more in Collins statement – which you can read on-line in its entirety here.

According to the National Biodiesel Board, World Energy – one of the nation’s first biodiesel suppliers – has become the latest company to become an Accredited Producer under BQ-9000, a voluntary quality control program. So far, 11 companies are accredited, with another 7 undergoing the process.

BQ-9000 is a quality assurance certification program that includes procedures for fuel production, storage, handling and management aimed at ensuring fuel quality throughout production and distribution.

Earth Biofuels Inc. subsidiary, Earth Ethanol, has agreed to buy half of South Louisiana Ethanol LLC, which owns an old ethanol production facility near New Orleans.

The plan is to reconstruct the plant, located in Plaquemines Parish, to produce at least 65 million gallons of ethanol per year. The plant is located on the Mississippi River and within the Gulf Opportunity Zone, an area the federal government has targeted for rebuilding through tax incentives after Hurricanes Katrina and Rita.

Earth Biofuels also recently announced another addition to its star-studded board – legendary NASCAR-driver Rusty Wallace.

According to a company release, Wallace joins fellow advisory board member Julia Roberts and Board of Directors members country music legend Willie Nelson and actor Morgan Freeman in promoting the use of renewable fuels such as Earth Biofuels’ biodiesel and ethanol.

Wallace is a former NASCAR Premier Series champion and 55-time race winner. He ranks as one of the top-five money winners in NASCAR history.

Florida Agriculture and Consumer Services Commissioner Charles Bronson was pleased with the turnout at this week’s Farm to Fuel Summit in Orlando. More than 300 people from 10 states and Brazil participated in the summit on how to achieve the goal of reducing the United States’ dependence on foreign oil and expand the market for Florida’s crops.

“I have long believed that Florida agriculture could play a major part in meeting our nation’s fuel supply,” Bronson said. “Clearly, the overwhelming number of people who have come to this summit because they believe it as well and want to do what is necessary to achieve these goals.”

Speakers at the two-day summit include representatives from the U.S Department of Energy, USDA, University of Florida, General Motors, the petroleum industry and agriculture. Bronson is encouraging participants to build upon the new relationships the summit has established among all these diverse entities.

Gary Cooper with Southeast Agnet attended the event and interviewed Commission Bronson. Bronson (4:30 min. MP3)

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A new exhibit out here at the Farm Progress Show was put together in just the last 45 days by FlexFuel Motors.

The man who’s the inspiration and work horse behind it is Tad Whitten, Motor Sports Management, Inc. Besides having a variety of vehicles on display that utilize ethanol or biodiesel, he built a replica of the first ethanol filling station which was in Nebraska. As you can see in the picture he’s found pumps and other original equipment and even built the building as close to as possible to the original as he could.

There’s a skit that runs every little while with volunteer actors reliving what a typical fill up would have been like. They talk about ethanol and then it ends with a speech about renewable fuels and why they’re doing this.

I interviewed Tad and you can listen here: Tad Whitten Interview (5 min. MP3)

I didn’t videotape the show but I did record it as best I could so you can hear the audio here: Ethanol Show (5 min. MP3)

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One of the big announcements here at the Farm Progress Show on opening day was from Bunge and Dupont who have a biotech alliance. Basically they’ve created a new brand, “Treus.” This is being done to “reflect their expansion of the companies’ soy collaboration beyond food and nutrition products to include industrial applications, biofuels and other opportunities.”

Low linolenic soybean oil produced from Pioneer® brand soybean varieties, and previously marketed as NUTRIUM Low Linolenic Soybean Oil, will now be marketed as TREUS™ Low Linolenic Soybean Oil.

DuPont has a significant effort to deliver new technologies to the growing biofuels market, which includes improving biofuel production through improved seed and crop protection products; developing new technologies to allow conversion of cellulose to biofuels; and developing next generation biofuels, including biobutanol. In addition to developing corn hybrids for ethanol, DuPont subsidiary Pioneer Hi-Bred International, Inc., is characterizing Pioneer® brand soybean varieties for oil content to determine impact on biodiesel production.

I interviewed Troy Hobbs, Business Manager, Bunge/Dupont Biotech Alliance. He describes the changes in more detail and what this means for producers. Troy is pictured on the left of the Treus sign. On the right is Jason Klootwyk, Bunge, Asst. Commercial Manager, Grain Division.

You can listen to my interview with Troy here: Troy Hobbs Interview (3 min MP3) Note: I wasn’t using my regular recorder but the audio is acceptable.

Full Release

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Paseo Biofuels, the Kansas City biodiesel plant joint venture between Cargill and Missouri Soybean growers announced earlier this month, is holding an investment meeting this week.

It will take place at 1:00 p.m. Thursday at the Farm Credit Services office off Hwy 65 North in Marshall, Missouri.

No website yet, so for more information about Paseo Biofuels they suggest you call 573-635-3819.

Sprague Energy Corp. of New Hampshire has become the first oil terminal operator in the United States to earn BQ-9000 Certified Marketer status by the National Biodiesel Board, according to releases from both Sprague and NBB.

“This designation demonstrates Sprague’s commitment to supplying our customers with the highest quality biodiesel,” said Sprague President and CEO John McClellan. “It is our responsibility to prevent off-specification biodiesel from entering the marketplace and the BQ-9000 program ensures this. Put simply, if it doesn’t meet BQ-9000 quality standards, we won’t sell it.”

This year, Sprague has opened the first rack-blended biodiesel terminal in Albany, NY, enabling home heating and diesel fuel retailers throughout Upstate New York, Vermont and Western Massachusetts to supply a precisely blended biofuel product to their customers. Sprague’s Albany terminal, which also stores approximately 40 million gallons of traditional petroleum fuels, stores 40,000 gallons of pure biodiesel (also referred to as “neat” or B100). The B100 is blended with diesel fuel (“Biodiesel”) for over-the-road applications and #2 heating oil (“Bioheat”) for residential and commercial heating applications. The biofuel content is typically 2, 5, or 20 percent of the blended fuel.

New York Governor George E. Pataki, speaking at the Albany facility’s grand opening said “We recognize the need to reduce our dependence on imported energy, and this new facility shows that this vital energy transition is not only possible, but already underway.”

Fickle Ernesto can’t seem to make up his mind where he plans to go, or even if he’s a hurricane or a tropical storm, so officials planning the Florida Farm to Fuel Summit in Orlando this week are nervously keeping an eye on the weather, just in case.

Several hundred participants from the state and federal government and private industry are planning to attend to discuss incentives and financing opportunities for alternative and renewable fuels in the Sunshine State as well as research, production and distribution programs.

The conference is scheduled for Thursday and Friday. The Florida Department of Agriculture officials say if the event is cancelled due to Hurricane Ernesto they will send out an advisory and post the information on the web site.

St. Petersburg Times reporters David Adams and Craig Pittman have started a new Florida-based biofuels blog called The Fueling Station.

They promise to “provide regular updates with news about your favorite energy source from renewables to nuclear.” On the site now are interviews with Florida Governor Jeb Bush and Dr. Jose Sifontes in Gainesville talking about “his waste transformation bioreactor system.”

Nice site – love the logo!

Next week, Purdue University and U.S. Sen. Richard Lugar will host an energy summit to discuss industry and policy perspectives on how our nation can significantly reduce its dependence on foreign oil.

Richard G. Lugar-Purdue Summit on Energy Security will bring more than 600 leaders to the Purdue campus in West Lafayette, Ind. to discuss national energy issues and policy. Among those joining Lugar, R-Ind. for the daylong event include Indiana Gov. Mitch Daniels, Purdue President Martin C. Jischke and U.S. Rep. Pete Visclosky, D-Ind.

The Aug. 29 invitation-only summit includes a panel discussion, “Implementing Strategies to Reduce Foreign Oil Dependence.” Panelists include Sue Cischke, Ford Motor Co. vice president; Carol Battershell, vice president for alternative energy for BP Inc.; and Amy Myers Jaffe, Wallace S. Wilson Fellow in Energy Studies at the James A. Baker III Institute for Public Policy of Rice University. Brian Lamb, president and CEO of C-SPAN, will serve as panel moderator.

Truckers on the nation’s highways can now find biodiesel just by calling a toll-free hotline.

The National Biodiesel Board has announced the launch of 866-BIODIESEL where truckers and other motorists can locate biodiesel 24 hours a day, 7 days a week.

According to an NBB release, the Biodiesel Hotline staff has access to mapping software linked to a database that is populated and kept up to date with retail outlets carrying biodiesel. Information including truck accessibility and blend percentage of biodiesel to petro-diesel is available from the database.

Based on a recent survey, truckers state that reduced dependence on foreign oil and support for U.S. farmers are two of the most important reasons to use biodiesel. Many truckers also state that biodiesel reduces wear and tear through increased lubricity and improves engine performance. Awareness of biodiesel among truckers is high, so the most asked question is “where can I find biodiesel?”

Retail pump locations can be found from biodiesel.org, and those that are truck accessible are currently searchable on BioTrucker.com, but often truckers do not have access to the Internet.

The number is 866-BIODIESEL.