Domestic Fuel

I spoke with Paul Willems, BP Energy Biosciences Institute, one of our speakers at the Farm Foundation Transition To A Bio Economy Conference. I had met him previously at an earlier conference in the series.

Paul says the BP Energy Biosciences Institute was created as a place to apply modern biology to energy problems. He told us that from their perspective, the turbulant times we’re in right now are temporary and that the fundamental trends for the future are unchanged. Those being the supply of oil and gas and the growth and demand for energy products. He says that their CEO likes to say that, “the future has been delayed, it hasn’t been canceled.”

I think he made a good point in my interview with him that we shouldn’t panic. He says there are numerous technology efforts going on in the alternative fuels industry and that it would be a mistake to see that work evaporate because we live in a world of crisis. He urges a steady course toward the future. He also talks about the benefits of biotechnology in developing more efficient alternative fuel production but points out that the industry is still just in its infancy.

You can listen to my interview with Paul here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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Biofuels like ethanol and biodiesel weren’t the only energy alternatives on the program at the Farm Foundation Transition To A Bio Economy Conference. We also had a presentation on wind energy from Mark Willers, Minwind Energy.

Mark says Minwind Energy was formed by a group of local farmers and businessmen in southwest Minnesota. He’d like people to understand that the electrical grid in the United States needs to be upgraded due to continuing increases in the use of electricity and how that is accomplished and funded is going to be an important issue. He thinks Americans want and need an energy policy that’s focused on efficiency. He says that Congress has extended production tax credits for wind turbines and that’s been helpful.

I thought he made some interesting points about how much news and discussion focuses on liquid fuel like gasoline when the largest energy use in America is from electricity. This is the sector of energy use that wind makes its contribution into.

You can listen to my interview with Mark here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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The legislative guru for the National Biodiesel Board is Manning Feraci. He was on the Farm Foundation Transition To A Bio Economy Conference program.

He gave us an update on the current state of the biodiesel industry and the need for stable policies coming out of DC. He says that he sees some real opportunities now as some of the energy bill mandates are being implemented. He says it’s also a good time to get some structural reforms to the biodiesel tax incentive that will make it work better. I asked him about the carbon issue and he says that biodiesel is such an efficient fuel that it makes the product a good fit in helping obtain green house gas emissions reductions.

You can listen to my interview with Manning here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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I think Joel Velasco, Brazilian Sugarcane Industry Association, had the quote of the day here at the Farm Foundation Transition To A Bio Economy Conference.

He said that carbon is the new agricultural commodity and that our incentive is to produce less of it and get paid for it. So, grow a crop, sell it and maybe earn some carbon credits? Who knows where all that will wind up.

Joel wanted people to know that biofuels can not only help mitigate climate change but build energy security. In Brazil they’ve managed to increase the use of ethanol from sugarcane to where they’ve displaced fifty percent of their liquid gasoline. They don’t have gas stations anymore he says, they have “fuel” stations. He says price is the key to the development and use of ethanol and today ethanol is half the price of gas in Brazil.

You can listen to my interview with Joel here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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Seth Meyer is with the Food and Agricultural Policy Research Institute (FAPRI). He’s also a speaker here at the Farm Foundation’s Transition To A Bio Economy Conference.

He talked to us about how biofuels policies are affecting commodity prices and trade but he says there are a lot of other factors affecting export volume. For example, he says that even though we’ve been using more corn to make ethanol we’ve still been able to increase the amount of corn we’re exporting at the same time. However, whether we have biofuels policies or not other factors will come into play like weather, the price of oil and foreign demand.

You can listen to my interview with Seth here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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We’re back in session at the Farm Foundation’s Transition To A Bio Economy Conference: Global Trade & Policy Issues. I’ll be posting live throughout the morning. Feel free to join in.

Speaking on behalf of the European Commission To The United States here at the Transition To A Bio Economy Conference was Laurent Javaudin.

His comments focused on the impact of EU mandates for renewable energy. To start with, in the EU they don’t have a mandate of a certain number of gallons of biofuels. Instead they are looking at requiring alternative energy sources like biofuels be a percentage of the fuel consumed and achieve it by 2020. He says that they don’t consider just biofuels but also other alternative sources of energy. The biofuels that are considered must be produced in a sustainable way. They also expect these fuels to obtain at least a 35 percent decrease in green house gas emissions.

He says that after the political decision of December 2008, the implementation phase of the mandate for the 27 nations of the EU is now a work in progress and they hope to have it kicking in by the second quarter of 2010.

You can listen to my interview with Laurent here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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We know that OPEC has had a monopoly control over the price of oil on the world market and we hope that the increase of more environmentally friendly biofuels will force that to change. However, David Zilberman, University of California, Berkeley, has created a model to measure how much impact we’re having.

I spoke to David here at the Farm Foundation’s Transition To A Bio Economy Conference. He wanted to show how ethanol in particular fits into the whole OPEC price situation. His model shows that by increasing the supply of fuel with ethanol you reduce OPEC’s ability to make money. He says that our ethanol production has raised the price of fuel in OPEC’s own countries while lowering it for everyone else around the world.

He says the promise of ethanol isn’t just it’s value to our environment but the ability to lessen OPEC’s grip on fuel prices.

You can listen to my interview with David here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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Biofuels production in Canada will impact meat trading patterns according to research by Al Mussell, George Morris Centre, University of Guelph. He says that the increase in biofuels production will turn the country into an importer of grains instead of an exporter. Al was one of the speakers at the Transition To A Bio Economy Conference.

He says that as you develop an ethanol production system built on feed grains it will seriously impact feeding livestock. That will mean serious adjustments over time. He says that these trends take a while to work themselves out. But in the long run he says we should like the taste of Brazilian beef and pork.

You can listen to my interview with Al here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

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A very interesting presentation at our Farm Foundation Global Trade and Policy Issues conference had to do with the impact on poverty. Tom Hertel, Purdue University, was our presenter.

He says they conducted an international study of 16 developing countries and the impact of biofuels production on the poverty level. As he puts it, it’s a very complex issue. Most people he says think that just because food is scarce in low income countries that biofuels production from feedstocks would contribute to poverty but in fact, the opposite is true in some parts of the world like southeast Asia. However, in other parts of the world where the low income population is mostly urban, like South America, the opposite is true.

You can listen to my interview with Tom here:

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You can download the interview with this link (mp3).

You can find photos from the conference here:
Transition To A Bio Economy Conference: Global & Trade Issues Photo Album

Podcast: Play in new window | Download (5.8MB)