Domestic Fuel

Good news if you’re a fuel retailer in Kansas. The state offers a 40 percent tax credit to retailers who invest in E85 fuel. Couple that with the 30 percent tax credit the federal government offers, and fuel retailers in Kansas can take advantage of a 70 percent return on their E85 investments. That’s one of the key points Sue Schulte, the Director of Communications of the Kansas Corn and Grain Sorghum Associations, drove home to attendees at today’s educational forum on E85 fuel. The forum was hosted by the Ethanol Promotion and Information Council to help direct local members of the ethanol industry in Kansas City on how to get online with E85.

Sue clued participants in on where the ethanol industry stands in Kansas, so producers and retailers could get a feel for what the state already has to offer and determine where and how the local industry can grow. Sue says there are 10 dry mill ethanol plants in operation in Kansas. These plants have a capacity to produce over 329 mill gallons of ethanol. Sue says that current Kansas production creates a market for over 116 million bushels of sorghum and corn. She adds that more expansion is on the way, with ethanol plants that are either under construction or nearing construction having projected production capabilities of about 330 more million gallons of ethanol each year. The state’s fuel industry is beginning to respond. Sue says just five filling stations offered ethanol in 2005. Now, there are 24 stations throughout the state that pump the alternative fuel.

I caught up with Sue and asked her about her thoughts on what today’s educational forum on E85 offered local industry members. You can listen to my interview with Sue here:

Podcast: Play in new window | Download (1.5MB)

St. Louis-based Farmergy… a provider of technology to help farmers and ranchers “get off the grid”… has bought Missouri Valley Renewable Energy, a company touted as a leader in Missouri for renewable energy sources. MOVRE was founded in 2000 by Henry Rentz, after an extended power outage left his farm and home without the capability to pump water or provide refrigeration. According to a Farmergy press release, Rentz, the former CEO of MOVRE, now will join Farmergy as a part of its management team:

“A critical component of our success at Farmergy will be our ability to effectively install a vast array of clean energy solutions for farmers and ranchers across the country,” says Mark Green, Farmergy president and chief executive officer. “Henry’s intimate knowledge of both agriculture and the renewable energy industry will be invaluable to us as he designs and implements our national certified installer program.”

The release goes on to say that Farmergy-certified installers will make sure that customers get the best installation for whatever energy source they choose.

Iowa Senator Tom Harkin, pictured here squeezing into an ethanol-powered funny car, is calling for a study into distributing ethanol by pipeline.

Harkin and Senator Dick Lugar (R-IN) introduced legislation on Friday to direct the U.S. Department of Energy to study “the feasibility of transporting ethanol by pipeline from the Midwest to the East and West coasts, where demand is growing.”

According to a Harkin press release, given the increasing ethanol demand, there may be economic benefits to transporting ethanol through dedicated pipelines. However, such a dedicated system could take a decade or more to build.

“With the ethanol production and demand both on the rise, we need an accurate and fair analysis of the potential to distribute ethanol around the country by pipeline,” said Harkin. “We continue to hear comments that it can’t but done efficiently, but it is happening right now in Brazil. The goal of this bill is to examine the issue and get all the facts on the table.”