Eligible costs must be related to construction or repowering improvements, such as engineering design, equipment installation and professional fees. The application deadline for this program to receive funds for Fiscal Year 2012 is June 1, 2012. For additional details, please see pages 5232 through 5234 of the February 2, 2012, Federal Register.

Second, USDA also announced the availability of up to $25 million to make payments to advanced biofuels producers who expect to produce eligible advanced biofuels at any time during Fiscal Year 2012. To be eligible for these funds, an advanced biofuels producers must have enrolled in the program by October 31, 2011, even if the producer has an existing contract with the Agency.

Payments will be made to producers of advanced biofuels derived from renewable biomass, other than corn kernel starch. These include cellulose, sugar and starch, crop residue, vegetative waste material, animal waste, food and yard waste, vegetable oil, animal fat, and biogas.

Contract payments will be made quarterly. For additional details, please see pages 5229 through 5232 of the February 2, 2012, Federal Register.

“President Obama has laid out a new era for American energy—an economy fueled by homegrown and alternative energy sources that will be designed and produced by American workers,” said Vilsack. “These programs support that vision by helping biorefineries use renewable biomass as a replacement fuel source for fossil fuels and supporting advanced biofuel producers as they expand production.”

2012 projections show that Nebraska drivers could purchase close to seven hundred million more gallons this year. Last year, production from the state’s 25 ethanol plants topped 1.9 billion gallons according to preliminary data. 91 percent of the state’s production goes to U.S. domestic markets, five percent goes overseas and four percent stays in Nebraska.

According to the Energy Information Administration, 2011 U.S. ethanol production was 14.4 billion gallons. The country’s total annual motor fuel usage is around 134 billion gallons. Ethanol accounts for 10.7 percent of total U.S supply.

“Our persistence paid off,” says Loran Schmit, a former member of the Nebraska Legislature who laid the groundwork for the development of Nebraska’s ethanol industry. “Ethanol is a major boost to our economy. Continued expansion of the industry will provide greater benefits for agriculture and energy security.”

Sign up for the Nebraska Ethanol Board’s FFV club for updates of new E85 locations and other announcements.

Biodiesel is produced in nearly every state in the country and is on pace to support more than 39,000 U.S. jobs in 2011 while replacing roughly 1 billion gallons of petroleum diesel. Made from an increasingly diverse mix of resources such as agricultural oils, recycled cooking oil and animal fats, it is the first and only commercial-scale fuel produced across the U.S. to meet the EPA’s definition as an advanced biofuel. Biodiesel can be used in existing diesel engines and meets strict specifications of ASTM D6751.

Iowa has 41 ethanol refineries that produced 3.7 billion gallons in 2011, up from 3.5 billion gallons in 2010.  This represents 27 percent of the estimated 13.8 billion gallons of nationwide ethanol production.

“2011 was certainly a good year for Iowa ethanol producers with increased production and profitability,” said IRFA Executive Director Monte Shaw. “However, we relied on export markets for growth. We’re also facing the expiration of ethanol’s tax credit. Those factors place a premium on pushing the rapid commercialization of E15. Higher blends like E15 are the only way to guarantee increased ethanol production in the future and the jobs and foreign oil displacement that comes with it. We are waiting for final federal approvals, but Iowa will be a leader in E15.”

David says Mcgyan was formed about 6 months ago as the company to license their new biodiesel technology. It’s a process that uses a fixed bed catalyst using metal oxide to produce biodiesel. They can use all types of feedstock. That makes them flexible and able to choose the least expensive feedstock available. Feedstock is the most expensive component of the production process. He says they started out a couple years ago after discovering the process. Since then they’ve been scaling up to what is now a large size production facility. He says the plant is performing beyond their expectations.

You can listen to my interview with David here:

The ethanol industry received some negative news today compliments of the newly released Soyatech Biofuels Monitor, a publication from HighQuest Partners. The study projects that for First Quarter 2009 the U.S. ethanol industry will operate at 67 percent of nameplate capacity through 2010. The study authors, in part, based their predications on data from the USDA Planting Intentions report that was released on March 29, 2009 that estimates the corn crop in 2010 will remain stagnet around 12.15 billion bushels or approximately 85 million acres of corn.

According to an article from Biofuels Journal, “At that level, given current corn demand estimates for food, feed and exports, there would be only 3.4 billion bushels of corn available from the 2009 corn crop for the 2010 production of ethanol, or enough to produce approximately 9.6 billion gallons.”

Hunt Stookey, co-author of the study and managing director of HighQuest Partners was quoted in the article as saying, “This is against forecast industry nameplate capacity of 14.4 billion gallons by the beginning of 2010 and an RFS mandate of 12.0 billion gallons.”

Pundents have criticized the ethanol industry for taking a growing share of the corn market but according to Stookey, “The ethanol industry is benefiting from the current economic crisis which has reduced demand for livestock, dairy and poultry, thereby reducing competing demands for corn.” Typically, when there is a shortage of corn, the ethanol industry absorbs the loss.

But they can also make a pretty picture too. I was driving south through Missouri last night and passed through Laddonia and the POET plant there.

This was a handheld snapshot from the highway (not much traffic at the time I was passing by).

“It is no longer a question of if we are able to produce cellulosic ethanol, but when,” POET CEO Jeff Broin said.

Jeff announced POET’s commitment to develop a commercial cellulosic ethanol plant in Elmersville, Iowa at the Ethanol Conference and Trade Show in Omaha, Nebraska earlier this month. Construction on what POET is calling “Project Liberty” will begin in 2009 and the company expects the facility to be online by 2011. But, POET promises to have a smaller pilot-scale facility up and running by the end of this year.

Jeff says now is an optimal time to take advantage of cellulosic energy because, as he sees it, the industry has sustained strong progress with investments from private industry and academia:

“The stars are beginning to align for cellulosic ethanol,” Jeff said.

POET’s commercial cellulosic plants will process feed stock corn cobs and corn fiber. But, corn isn’t the only source for cellulosic ethanol production that’s poised to go commercial. Bill Schafer, senior vice president of business development Range Fuels, says his company is investing in processing woody biomass for cellulosic ethanol production in Georgia.

In this DomesticFuel Cast, we hear from Jeff Broin, CEO of POET, and Bill Schafer, senior vice president of business development Range Fuels. Here is the Domestic Fuel Cast #8:
df-podcast-08.mp3

You can also subscribe to the DomesticFuel Cast using the following url/feed link: http://www.zimmcomm.biz/domesticfuel/domestic-fuel-cast.xml.

Located near Coalinga, CA, the solar-biofuel projects will deliver a total of 700 gigawatt hours (GWh) annually of renewable electricity to PG&E customers throughout northern and central California.

The renewable hybrid projects combine Luz solar thermal trough technology and steam turbines powered by biomass fuel to produce hybrid solar-biofuel renewable electricity. The incorporation of biofuel increases the overall production of renewable power by allowing for around-the-clock production of clean energy, even at night or when sunlight is not at its strongest. Each hybrid project will require 250,000 tons of biofuel annually, to be supplied from a combination of locally-produced agricultural wastes, green wastes and livestock manure. These projects are expected to begin operation in 2011.

San Joaquin Solar LLC is a subsidiary of Martifer Renewables Electricity LLC.

“Our progress at the Seneca refinery continues to solidify our proven process technology that enables the use of high free fatty acid (FFA) feedstocks, which tend to cost less than feedstocks with lower FFA levels,” said Kenneth T. Hern, Chairman and CEO of Nova. “Two of the three trains have operated at nameplate capacity and have exceeded our performance objectives for yield, throughput, and quality. The refinery has successfully demonstrated conversion of feedstocks with free fatty acid levels above 10 percent. To date, we’ve produced more than 3 million gallons, and we expect to begin starting up the refinery’s final 20 MGY train in June. Our B100 quality continues to be excellent.”

“We are commissioning the Seneca refinery one train at a time, spaced at 45 to 60 day intervals to smoothly integrate equipment shakedown, staff training, logistical support, markets and overall refinery operations while ramping up production at a methodical and structured pace,” said Mr. Hern. “We could not be more pleased with the progress on the first two trains and are looking forward with great anticipation to the startup of the final one.”

Nova says it is committed to building and operating a number of Nova-owned biodiesel refineries. The company is aiming to position its production to reach between 180 to 220 million gallons of biodiesel fuel on an annual basis.

SunEthanol announced today that it has hired biofuels leader William Frey, Ph.D., as the cellulosic ethanol company’s new chief executive officer.

Previously, Dr. Frey led the efforts to commercialize advanced biofuels and new cellulosic process technologies being developed by DuPont. Frey was one of the first business development leaders who established the DuPont Bio-Based Materials business in the late 1990′s, now known as DuPont Applied BioSciences. He personally led the team that developed DuPont Biofuels as a business unit in 2002, and has broad partnership experience with industry leaders such as BP, British Sugar, Tate & Lyle and Genencor, a division of Dansico, as well as significant experience in working with global government agencies, including the U.S. Department of Energy. Dr. Frey had been with DuPont for 28 years prior to accepting the position as CEO of SunEthanol.

SunEthanol says its mission is to help the nation power automobiles without relying on fossil fuels.

With the new equipment, Brad Foote’s annual production will grow from the current equivalent of 2,000 MW of installed wind turbine capacity to more than 5,000 MW.

Brad Foote also has purchased the largest Hofler 4-meter internal/external hobber/gasher that Hofler has ever produced.

Brad Foote is a subsidiary of Broadwind Energy.

“Our goal is to drive promising clean energy ideas and technologies from the research lab to commercialization,” Earley said. “To do that, we are making a 5-year, $450,000 commitment to fund the DTE Clean Energy Prize, a new competition open to the best and brightest students and faculty at Michigan’s colleges and universities.”

The prize competition will be hosted by the University of Michigan, but will be open to students and faculty from all Michigan colleges and universities. For the first year, each team must have at least one University of Michigan student or faculty member.

Competing teams will be required to develop business ideas that support renewable energy, energy efficiency and demand response, greenhouse gas and environmental control technologies and energy storage. The first competition will be held this fall. Prizes will be awarded next spring.

In this DomesticFuel Cast, we hear from LifeFine Foods CEO Bill Becker about the company’s current innovations with corn, food and fuel and what’s in store for the future.
Here is the Domestic Fuel Cast #4:
df-podcast-4.mp3

You can also subscribe to the Domestic Fuel Cast using the following url/feed link: http://www.zimmcomm.biz/domesticfuel/domestic-fuel-cast.xml.

Marcos was one of seven speakers at today’s Ethanol Summit held at the Indianapolis Motor Speedway today. General Motors sponsored the event. The object of the Summit was to explore Brazil’s strong and sustained success with ethanol while also taking a look at where and how the U.S. ethanol industry has room to grow.

Marcos and Indy racing legend Emerson Fittipaldi – a Brazilian ethanol producer – highlighted a number of milestones the Brazilian ethanol industry has already attained:

• All fuel sold in Brazil contains a 20 to 25 percent blend of ethanol
• The unsubsidized ethanol industry offers a fuel that is on average one dollar below the price of gasoline
• Virtually all 33,000 gas pumps offer E100
• Just one percent of the 40 percent of arable land in Brazil is being used to produce sugarcane ethanol
• Forty-five percent of fuel for cars is from sugarcane
• Sugarcane ethanol production is 100 percent self-sufficient
• The food industry is growing faster than the ethanol industry
• Ninety percent of all new automobiles sold are flex-fuel automobiles
• One-hundred percent of GM vehicles produced in Brazil are flex-fuel
• Twenty percent of all cars are flex-fuel vehicles today
• Fifty percent of all cars will be flex-fuel vehicles by 2012
• Three percent of electricity is from sugarcane
• Honda and Yamaha are introducing flex-fuel motorcycles this year

Marcos and Emerson stressed ethanol’s role in reducing fuel emissions. They also pointed out that the combined production of ethanol in Brazil and the U.S. amounts to 75 percent of all ethanol produced globally. They both urge the U.S. to develop political policies that enable better cooperation between the Brazilan and American ethanol industries. Marcos says there is certainly still room for the Brazilian ethanol industry to grow. He says Brazil can produce 2 to 3 times more ethanol than the country’s current production. He also points out that 100 countries could potentially supply biofuels to 200 nations as compared to the 20 oil producers who are currently supplying the rest of the world.

Michael Ladisch, the chief technical officer of Mascoma Corp. and Bill Becker, the president of LifeLine Foods spelled out how the U.S. ethanol industry has the potential to achieve a success beyond that of Brazil. Mike said Mascoma Corporation is focused on cellulosic ethanol, which he says is the next generation of ethanol in the U.S. He says his company has simplified the production of ethanol. He also points out that cellulosic ethanol would reduce greenhouse gases by ninety-five percent.

Bill explained that his company, LifeLine Foods, demonstrates that the discussion about food versus fuel is simply not relevant with ethanol. In a television interview, Bill said LifeLine is “a food company that happens to sell ethanol.” He says ethanol is produced with the least-valuable part of the corn crop. Ethanol is formed from the leftovers of producing food items like corn oil and feed items like distilled grains. Bill also sees no reason why corn-based ethanol should contribute to food prices. A single corn crop can be used for food and fuel and feed and fiber and more. He says corn has the potential to triple in production tonage per acre. Bill says LifeLine can also extract a significant source of protein from corn and use it as a supplement for feeding the world, while still using the crop to produce ethanol.

This is all great news to General Motors. Beth Lowery, the vice president of Environment, Energy and Safety Policy for GM says the auto manufacturer is fully committed to stimulating the market for E85 in the U.S. She says “performance vehicles and ethanol can go together.” She reminded listeners that there are 7 million flex-fuel vehicles on U.S. roads today. Plus, by 2012 biofuel vehicles will make up fifty percent of GM’s total production of American automobiles. Beth says GM will offer 15 different models of flex-fuel vehicles in 2009, including the Crossover – America’s first four-cyllander FFV. Beth stressed that as the use of ethanol continues to grow in the U.S., it is important for the industry to get the economics right. She says there needs to be more ethanol offered to consumers at the pumps and auto manufacturers need to continue developing flex-fuel vehicles.

You can listen to the entire panel discussion here. It’s about an hour and twenty minutes of dialogue, but I think it’s well worth it. There’s a TON of interesting information. Not to mention that you get to hear from an Indy legend!
indy-08-summit.mp3

2008 Indy 500 Photo Album

I caught up with Indiana Corn’s Mark Walters again, as well as ICMC’s Mike Shuter (pictured), the council’s President and a Frankton, IN farmer. We talked about the new mobile marketing unit, the truth about ethanol as they see it and how IN corn fits into the ethanol industry. You can listen to my interview with Mark and Mike here: shuter-walters-indy.mp3

2008 Indy 500 Photo Album

Gly-Clene (TM) can be made from any crude glycerol, regardless of the feedstock, including yellow grease. The fuel has the ability to power up turbine engines for electricity production or any other non-aircraft use associated with turbine engines. Gly-Clene can also be used to heat fluid bed reactors as it also performs well in oil gun furnaces.

With the ever-increasing biodiesel production, the glycerin market grows as well. Subsequently, the fear of another glut has concerned biodiesel manufacturers, scratching their heads looking for a stable way to dispose of this by-product. There is currently enough glycerin produced in the U.S. alone for Gly-Clene to produce 27,000 megawatts of electricity per day or over 8 billion megawatts per year without even adding steam turbines to take advantage of the excess heat produced by the turbines.

Visit www.xcelplusglobal.com to view video updates on the Gly-Clene technology.

“With clean diesel power, drivers can have approximately 30 percent better fuel economy and 50 percent more torque, as well as reduce emissions by up to 25 percent, when compared to gasoline-powered passenger car engines. With clean diesel no longer are fuel economy and performance mutually exclusive,” Banks said.

Bosch is a leading supplier of automotive technologies and the developer of the common rail diesel injection system. As concerns grow over the environment and fuel economy, clean diesel technology provides an alternative for consumers and automakers. Bosch estimates the North American market for light-diesel vehicles will reach 15 percent of new vehicle sales by 2015… Bosch’s advances in diesel technology have helped position the company as a leader in powertrain development and a factor in motor sports. Bosch sponsors the American Le Mans Series champion Audi R10 TDI race team.

Various news sources have reported that more and more auto manufacturers will be offering clean diesel vehicles. Acura, Chrysler, Mitsubishi, Nissan, Honda, Hyundai, Toyota, Ford and General Motors are expected to join Audi, BMW, Mercedes-Benz and VW in clean diesel technology. The growth in clean diesel options has led to vehicles on the market today that meet emissions standards in all 50 states.

With minimal cost and equipment, entry-level customers have the ability to lead the masses towards biodiesel independence. The BioBox Mini can process up to 400,000 gallons per year of ASTM-quality biodiesel and costs less than $250,000. That translates to a ROI of approximately six months, including a production build-up period.

“No one gets left to fend for themselves. We want biodiesel to succeed, and that means every customer must succeed,” says Eric McLeod, PNE’s founder and CEO.

PNE says the BioBox Mini offers a minimum of 400 gallons of biodiesel per 8-hour batch. The company also promises to offer both training and an on-site PNE representative to run the facility for the first several weeks of BioBox operation.

PNE has a YouTube video to help customers understand how their products can help them become biodiesel-independent:

Now, old brown is outdoing itself. UPS has placed an order with DTNA’s Freightliner Custom Chassis Corporation for the largest order of alternative-fuel and drive-train commercial vehicles to date. This time, UPS will be adding 300 CNG vehicles to its fleet, plus, 200 hybrid electric vehicles.

These environmental friendly vehicles are part of Daimler’s world-wide “Shaping Future Transportation” initiative and will be used by UPS for daily delivery operations across the United States and will function in concert with their current fleet of conventional diesel powertrain vehicles.

The hybrid-electric power train, combined with a diesel engine and electric motor, drive the FCCC chassis to achieve an over 40% improvement in fuel economy and an over 90% reduction in emissions compared to baseline non-hybrid vehicles.

UPS expects its fleet of hybrid trucks to save 176,000 gallons of fuel and to reduce carbon dioxide emissions by 1,786 tons each year.

Parducci effectively transferred all of its energy needs to non-polluting, renewable sources by supplementing its on-site solar power with Green-E(R) certified wind energy purchased from the Bonneville Environmental Foundation. The annual positive environmental impact of the winery’s 100% green power use is equivalent to:

In 2007 Parducci received the Governor’s Environmental and Economic Leadership Award, California’s highest environmental honor, for the company’s efforts to combat climate change. In addition to buying grapes from local family farmers, Parducci uses sustainable farming practices including bio-diesel tractors in the vineyards and 100% green power as well as earth friendly packaging at the winery. Parducci’s respect for the land yields quality wines as evident by recent 90+ point scores in several national wine publications.

LPP Combustion, LLC, using its patented LPP Combustion System, has recently demonstrated natural gas-level emissions from bio-derived ethanol (ASTM D-4806) during gas turbine combustor testing. Emissions of nitrogen oxides, carbon monoxide, sulfur dioxide, and particulate matter (soot) were the same as natural gas-level emissions achieved using current dry low emission (DLE) gas turbine combustion technology. In addition, the combustion of this bio-derived ethanol produced virtually no net carbon dioxide emissions.

LPP Combustion has developed a Lean, Premixed, Prevaporized (LPP) combustion technology that converts liquid biofuels, such as biodiesel and ethanol, into a synthetic natural gas. This LPP Gas can then be burned with low emissions in virtually any combustion device in place of natural gas, providing users with substantial fuel flexibility. A DLE gas turbine utilizing LPP Technology to burn biofuels creates a low emissions power plant with no net greenhouse gas emissions, resulting in the cleanest use of renewable fuels.

Fuel Frontiers, Inc., a wholly owned subsidiary of Nuclear Solutions, Inc., has announced that it has transferred funds to Shaw Stone & Webster (Shaw), a division of The Shaw Group Inc., to launch the engineering program that will provide a technical basis for a 400 Tonne per day Coal-To-Liquid (CTL) Ultra-Clean Diesel fuel production facility in Muhlenberg County, Kentucky.

FFI is planning to employ a commercially proven plasma gasification system designed by Westinghouse Plasma Corporation (WPC) coupled to commercially available Fischer-Tropsch (FT) gas-to-liquids (GTL) diesel fuel production systems, to be designed and constructed by Shaw Stone & Webster (SS&W) for its coal to ultra-clean diesel production facilities.

Georgia Power and Yellow Pine Energy Company, LLC, a biomass-fired facility to be located near Fort Gaines, Ga., recently signed a 20-year contract for electricity that will be generated from environmentally-friendly wood waste. The material will come from timber harvesting residuals and collection of non-commercial tree species, tree-thinnings, lumber scraps and wood waste reclaimed from landfills.

The Yellow Pine facility is scheduled to go into operation in 2010 and will produce 110 megawatts of renewable energy. Under the contract, Georgia Power will purchase almost half of the plant’s capacity, or about 50 megawatts. One megawatt is enough energy to supply a Wal-Mart shopping center or 250 Georgia residences.

Georgia Power provides energy for 2.3 million consumers throughout the state.

BioGold Fuels Corporation in a joint venture with Jack Allen Holdings Limited, has formed BioGold Fuels U.K. Limited and BioGold Fuels Europe Limited. The companies will work together to build plants throughout Europe that will convert waste into biodiesel, fuels, and energy, including fuel cells.

“BioGold is excited to be expanding our operations into the European market,” said BioGold’s CEO, Steve Racoosin. “Our collaboration with Jack Allen Holdings Limited, with their local expertise in the UK and throughout Europe, will strengthen BioGold’s success in producing biodiesel and energy throughout Europe. Our initial focus is on the United Kingdom with future plans to expand and build plants throughout Europe.”

Interstate Power and Light Company, a subsidiary of Alliant Energy Corporation, and AE&E – Von Roll, Inc., a technology provider of steam generating systems using renewable, waste and conventional fuels, have together patented(*) a technology application that helps ethanol plants run more efficiently, reduce emissions and improve their overall energy balance. FCStone Carbon, LLC has joined the patent owners to provide marketing and arrange financing options for ethanol producers interested in the technology.

As ethanol production has more than doubled in the past eight years, energy balance is a key issue. This technology will help producers reduce energy consumption while increasing the efficiencies of ethanol production.

Management says the new technology will offer more risk management and cost reduction for the ethanol industry.

The turbines are anticipated to be in service in the 2009-2010 timeframe on sites currently under review in the western and southwestern United States.

The company’s wind generation assets are managed by Duke Energy Generation Services, a Duke Energy subsidiary that focuses on renewable energy, commercial power and onsite energy across the United States.

Duke Energy is headquartered in Charlotte, N.C. and supplies power to about 4 million customers throughout the U.S.

The Brunswick County Landfill in Lawrenceville, Virginia is an 8-megawatt generating facility that has been developed with Richmond, Virginia-based Ingenco, which builds, owns and operates distributed generation facilities. The Brunswick County facility, which commenced operations in mid-October, will generate enough electricity to power over 5,000 homes.

The King & Queen County Landfill in Little Plymouth, Virginia is a 12-megawatt generating facility that also has been developed with Ingenco. The King & Queen County Landfill facility will generate enough electricity to power more than 7,500 homes.

Allied Waste says the emission reduction attained by the 52 landfill gas-to-energy projects currently underway is equal to removing about 2.6 million vehicles from the road each year. The projects also provide heat/power to approximately 240,000 homes. The company has 17 projects in permitting or under construction.

The facility will be designed to annually refine an estimated 38 million bushels of feedstock-grade corn into a clean burning, renewable fuel for the nation’s transportation needs. The biofuel produced by the Sherman plant could displace approximately 2.6 million barrels of foreign oil a year.

Once built, the Sherman refinery should be equal in size to Panda’s Hereford facility, currently nearing completion, which will be the largest biomass-fueled ethanol plant in the United States with one of the lowest carbon footprints of any similar-sized ethanol facility in the nation.