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 Iowa Corn Indy 250 presented by Pioneer will return once again to the Iowa Speedway in 2010.

The Iowa Corn Growers Association, the Iowa Corn Promotion Board and Pioneer have renewed their sponsorship for the 4th Annual race, to be held on June 20, 2010. There were concerns that the race started specifically to highlight the United States ethanol industry might be discontinued after Brazil took over sponsorship of the Indy Car Series this year, but Iowa corn growers and Pioneer have agreed to sponsor the race for at least one more year.

“Powering Indy Cars at top speeds is the ultimate in ethanol performance,” said Tim Burrack, a farmer from NE Iowa and Chairman of the Iowa Corn Promotion Board. “Iowa Corn is at the track again this year because the cars are not only running on corn ethanol, but thousands of Iowans hear and see our messages about the power, performance, reliability, and energy independence from homegrown corn ethanol.”

Previous Iowa Corn Indy 250 presented by Pioneer races have set record attendance at the Iowa Speedway with over 40,000 fans packing the stands.

The world’s largest rally competition will include an ethanol category for the first time next year.

The new category was introduced by the Dakar Rally organizers at the request of Brazilian rally veteran and former rally winner Klever Kolberg, who will drive the first-ever flex-fuel vehicle to take part in the prestigious race next year – a Brazilian-made 2010 Mitsubishi Pajero Sport model equipped with flex-fuel technology, with support from the Brazilian Sugarcane Industry Association (UNICA).

There is special meaning in supporting Kolberg’s effort according to UNICA President, Marcos Jank. “Ethanol is already utilized by the Indy Racing League, which is one of the most important racing categories in the world, and it is being adopted by a variety of categories here in Brazil and around the world. It is certainly significant to see that trend now arriving also at the Dakar, without a doubt one of the great events of its kind in the globe,” he said.

The 2010 Dakar Rally will be held in Argentina and Chile, with the start set for January 1st in Buenos Aires. The Dakar Rally was formerly known as Paris-Dakar.

Even though the Indy Car Series races this year are sponsored by the Brazilian ethanol industry, the Iowa Corn Indy 250 will still feature homegrown fuel. The race will be held June 21 at the Iowa Speedway in Newton, Iowa and sponsored once again by Pioneer Hi-Bred and the Iowa Corn Growers Association.

According to Craig Floss, CEO of the Iowa Corn Growers, the race is an excellent opportunity to inform the general public about the benefits of corn and ethanol. “Our reach has moved well beyond the state of Iowa to a national and even a global audience,” said Floss. “We are able to have the sponsorship opportunities on television this year which is a great way for us to talk about corn, all the places corn goes, and all the products that include corn.”

Pioneer Director of End Use Markets Russ Saunders says sponsorship of the Iowa Corn 250 is a great opportunity to show that support for ethanol and corn growers. “When we look at how fuel prices seem to be headed back up and we have economic challenges all around us, it’s more important than ever that we tell the story of ethanol,” said Saunders.

Saunders says Pioneer has been working to provide new technologies for growers to produce more and better corn to provide the food, feed and fuel needs of the nation and the world, including higher yielding varieties and grain that yields more ethanol per bushel. In addition, they are working on corn varieties that use less nitrogen fertilizer and less water and Pioneer’s parent company Dupont is actively involved in the development of second generation cellulosic ethanol.

The Iowa Corn 250 will be broadcast live on ABC starting at noon central time on June 21 with race time at 12:30 pm.

President Barack Obama has proposed that vehicle fuel economy standards be substantially increased to 35.5 miles per gallon by the year 2016… and biodiesel could be a big benefactor of that change.

This article from Biodiesel Magazine says auto industry folks, such as Dave Barthmuss, group manager for General Motors Environment and Energy Communications North America, believe the new Corporate Average Fuel Economy (CAFE) requirements would make diesel engines more attractive… and thus, make the green fuel to put in those vehicles more attractive:

“Because diesel engines have greater fuel efficiency and can operate with biodiesel—which is a low-carbon fuel—expanding this area will be considered, but our plan is to achieve the reductions with our current portfolio.”

Because diesel engines can offer fleet operators savings on CAFE requirements, it has been speculated in the short time since the new CAFE overview was published that the sector could see more business. This could be a boon for biodiesel. “There definitely has been more of a push from the current administration to implement programs that help the biofuels industries,” said Robert Dascal of New Energy Fuels in Waller, Texas. “Increased diesel fuel utilization obviously opens up more of a market for us.”

GM officials believe having one consistent fuel economy standard… instead of the hodge-podge of individual states’ regulations… will provide a more consistent platform for manufacturers to shoot for.

The latest edition of Domestic Fuel Cast listens in on some of the conversation at this week’s Farm Foundation “Transition to a Bioeconomy: Global Trade and Policy Issues” conference.

This is the fourth in a series of conferences looking at the transition to a bioeconomy the Farm Foundation has sponsored. This week’s event brought people from around the world to Washington, DC, where they were able to combine their divergent viewpoints to come up with workable solutions that everyone can live with. Unlike some other conferences where everyone already agrees before they meet, these Farm Foundation meetings put together people with vastly different perspectives. The conversations are lively, they’re maybe a bit pointed, but they work… and they are something we need to have more of in this country: frank, honest discussions where everyone doesn’t have to agree.

Folks like Purdue’s Wally Tyner or the European Commission’s Laurent Javaudin come with ideas that each might believe is best but walk away with more ideas than what they would have had with just yes-men around them. We picked up on part of the conversation regarding how the U.S. and Europe have different approaches to renewable energy mandates: the U.S. choosing to set a number of gallons of biodiesel and ethanol produced, while Europe wants to base its renewable energy goals on a percentage of all energy produced… regardless of the source. And while the Americans and Europeans had plenty to talk about with the recent tariffs being slapped on U.S. biodiesel coming to Europe, our friends like Joel Velasco with the Brazilian Sugarcane Industry Association reminds us that there are some pretty steep protectionist tariffs America has put on the import of his country’s ethanol. Finally, David Zilberman with the University of California-Berkeley reminds us to keep our eyes on the prize: becoming free from the yoke of OPEC oil.

It’s a unique conversation, and you can hear some of it on this week’s Domestic Fuel Cast here:

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Nevada-based Russell Industries, primarily known for its lucrative uranium mining operations, is looking at expanding into the biodiesel business.

This company press release says it’s moving into algae biodiesel development because of the massive amount of federal money to be poured in to green energy:

At this time the Company is focused on renewable energy, specifically, its Houston Algae Farm Project which will produce Algae oil and Bio mass to be sold as feed stock to bio diesel refineries and to the bio-gasoline, cosmetic, pharmaceutical, bio-plastics and organic industries, respectively. Specifically, in 2009, RIND plans to develop a full scale operational model that will be the first of its type to be located in Houston, Texas. The model will utilize closed photo bio reactors to grow Algae oil and Bio mass for commercial purposes.

“$60 billion has been allocated for alternative energy in the current stimulus bill. Washington has a clear mission to reduce dependence on foreign oil and develop alternative energies. RIND’s timing to market is ideal. Annually the demand in the U.S. for diesel fuel is 80 billion gallons, yet total production of biodiesel is around 450 million gallons, leaving the market for biodiesel virtually underserved,” said Rick Berman, President and CEO.

You can check out more about the company’s plans at www.russind.com.

Alternative fuels, such as biodiesel and natural gas, and hybrid electric vehicles could be the keys to cleaning up the world’s ports, polluted by the running of petroleum diesel enginesto onload and offload the goods coming and going through these points of commerce.

This story from NGVGlobal.com quotes a study, “Container Ports and Air Pollution,” published by Energy Futures, Inc.:

Reliance on diesel fuel for goods movement has contributed to a reputation for container ports being among the world’s biggest sources of air pollution and greenhouse gas emissions. Now, progress is being made toward reducing harmful emissions. The study found that natural gas is currently the leading alternative fuel for goods movement at U.S. container ports, while hybrid electric vehicles are gaining popularity in Asia.

The new Energy Futures study updates and expands on a report titled “U.S. Container Ports and Air Pollution: A Perfect Storm,” which was published in February, 2008. That study identified environmental protection alternative fuel programs at each of the Top 10 U.S. container ports, including their use of natural gas, biodiesel or hybrid electric vehicles.

The 77-page report is a call for leaders to push for more alternative fuel use to help, not only those port communities, but the world community as a whole.

As I told you a couple of weeks ago, the European Union for some time has been threatening to slap tariffs on American biodiesel coming into Europe… barring some deal today to derail the measures.

Well, this story from Reuters says that there was no last-minute reprieve and the duties are set to hit on March 13th:

The EU firms accuse U.S. producers of being involved in a “splash and dash” scheme, whereby they import cheaper biodiesel from countries such as Brazil and add less than 5 percent of U.S. diesel. The producers then qualify for a subsidy from Washington before exporting it to Europe.

“This simply is not the case,” Feraci said, noting some European producers are doing well, while others have been hurt by factors unrelated to U.S. imports, he said.

You and I both know this is not the last we’ll hear about this. Stay tuned…

National commodity organizations representing growers of corn, soybeans, wheat and sorghum gathered together for the first time as one group last week in Grapevine, Texas at the annual Commodity Classic. Corn and soybean growers have been together as one for the past 14 years, wheat joined the group last year, and sorghum made four this year.

Renewable fuels were a major topic of discussion throughout the week-long conference and were addressed during the general session on Friday. Emcee Mark Mayfield (left) talked with each of them – National Sorghum Producers chairman Toby Bostwick, National Association of Wheat Growers president David Cleavinger, National Corn Growers Association president Bob Dickey, and American Soybean Association president Johnny Dodson.

“One of the key issues ASA will be working on in the coming year is the extension of our biodiesel tax incentive,” said Dodson. “Biodiesel has been a win-win for the agriculture community and the average consumer.”

Bob Dickey with NCGA said making sure the Renewable Fuels Standard is implemented and maintained is one of their top legislative priorities for this year and said they will be working with the ethanol industry to increase the blend rate for ethanol. “We are supportive of higher blend rates based on sound science, provided the EPA goes along with it,” he said.