Domestic Fuel

The Burlington Northern Santa Fe Railway (BNSF)has recognized eight POET plants with the Annual Product Stewardship Award  for their records of safe transport. BNSF presents the award to shippers who transport a minimum of 500 loaded tank cars of hazardous materials during the previous year with zero non-accident incidents. Earlier this year, several plants received a safety award from Union Pacific.

“We are proud that our partnership with BNSF has helped keep transport of ethanol safe and efficient,” said, POET CEO Jeff Broin. “These POET plants work hard to ensure that safety remains a top priority.”

POET Biorefining plants in South Dakota recognized in the award are Chancellor, Mitchell, Big Stone City, Groton, Scotland, and Hudson. POET plants in Iowa are Coon Rapids and Corning.

The oil loving Wall Street Journal (WSJ) published an article today about the “peak of gasoline”.  Many analysts are predicting that with the rise in biofuels production, fuel economy and gasoline prices (although they are holding steady around $2.00 per gallon on average) and the current depressed state of the economy, we’ve seen “peak” gasoline use, at least in the U.S.

According to information released by the U.S. Energy Information Administration (EIA), drivers pumped 371.2 million gallons of non-ethanol gas every day in 2007. EIA anticipates a 6.9 percent decrease in 2009 to 345.7 million gallons, citing reduced gasoline demand and increased use of ethanol blends. Although some sources report that gasoline use today is higher than last summer, the EIA predicts that future gasonline demand will never exceed 2007 levels.

In addition, WSJ reports that, “Demand for all petroleum-based transportation fuels — gasoline, diesel and jet fuel — fell 7.1% last year, according to the EIA. This is the steepest one-year decline since at least 1950, as far back as the federal government has reliable data.”

This is great news for ethanol producers, especially as there are an estimated 300 million gallons of cellulosic ethanol ready and waiting to enter the fuel market. The historical barriers to an increased market for ethanol have been lack of infrastructure for E85 and mid-level blends and the need to raise the ethanol blend wall. Last month the ethanol industry joined together to file an E15 waiver, which is currently under EPA review and there is talk about the possiblity of biofuels infrasture funding from the federal government.

In the meantime, it appears that Big Oil is taking the decrease in gasoline production to heart and is activiely pursuing entry into the biofuels market.

When it comes to infrastructure needs for a bio economy our rural road system is a key component. To speak about it here at the Transition To A Bio Economy conference we heard from Frank Dooley, Purdue University. He sees a big increase in grain production, primarily in the midwest. With that comes a growing demand for transportation. He thinks we should be concerned because most of the corn will be moved by truck and that’s going to impact rural roads. He also sees an increase in rail transportation but not significantly.

He’s worked on a project with the state department of transportation in Indiana to study traffic flow changes and suggests that more of this type of research needs to be done. He says that a 100 million gallon ethanol plant will have up to 110 trucks in per day.

You can listen to my interview with Frank here:

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You can also download the interview using this link (mp3).

Transition To A Bio Economy Photo Album

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American motorists are rethinking their driving habits. That is, according to a new survey commissioned by the Ethanol Promotion and Information Council. The survey shows that consumers think skyrocketing gas prices means the nation should start moving away from oil.

The EPIC survey found 47 percent of those polled stated that a fuel price below $5 a gallon should be the point where fossil fuels are no longer our primary fuel sources. An additional 27 percent of those polled reported that the critical price point lies between $5 and $5.99. America is getting close to the break-point as Sunday, the national average of a gallon of gasoline rose to $4.005, 90 cents higher than a year ago, according to AAA.

Even in the face of heavy criticism from anti-ethanol groups and misplaced blame for rising food prices, the ethanol fuel industry continues to help keep fuel prices below the even-more exorbitant prices consumers would pay without the availability of ethanol fuel.
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GasHole, a new documentary film about the history of Oil prices and the future of alternative fuels, will assist in the fundraising for the St. Louis Regional Clean Cities in St. Louis, MO on June 13, 14 and 15. The film, narrated by Peter Gallagher, features interviews with a wide range of viewpoints from US Department of Energy Officials, Congressional leaders, Alternative Fuel Producers, Alternative Fuel Consumers, Professors of Economics and Psychology and more.

Rising gasoline prices is what peaked the interest of the St. Louis Regional Clean Cities Program to bring this movie to the St. Louis region. The Hi-Pointe Theater at 1005 McCausland Ave, in St. Louis (ironically under the shadow of a giant Amoco sign) will premiere The Film Racket’s new documentary, GasHole.

According to a news release, “GasHole examines US dependence on foreign supplies of oil and poses pointed questions about America’s turn from leading exporter to largest importer and the contributing economic and social forces. Several potential solutions are examined, including untapped technologies, navigating bureaucratic governmental roadblocks, and alternative fuels - all while questioning the American Consumer’s reluctance to embrace alternatives.”

The film is directed and produced by Jeremy Wagener and Scott D. Roberts. This will be the movie’s 17th stop in a nationwide tour that has reportedly been selling out across the country.

For more information on the movie, go to www.gasholemovie.com.

Now that’s a mouthful. But that’s also pretty cool. The chopper pictured isn’t the ethanol hybrid, though it is a Cadillac. But, the e-magazine Winding Road reports that Cadillac boss Jim Taylor says an ethanol hybrid version is being built.

A motorcycle enthusiast himself, Taylor commissioned the Cadillac chopper in the photo above from Great American Chopper of Clawson, Michigan. More interesting still is a second bike that’s still in the works, which will feature a hybrid engine capable of running on ethanol or in a pure electric mode.

The hybrid Cadillac bike is being built by V20 Consulting of New York City, and has been tasked with displaying “GM’s strength in science and technology.” The bike is purported to be capable of a 0 to 60 sprint of 4.5 seconds, and should be unveiled for the public at this year’s Los Angeles Auto Show.

Click here to see the article at Winding Road.

According to the Houston Business Journal, U.S. Development Group, LLC opened its ethanol handling and rail terminal in Arlington, Texas. The company will distribute fuel grade ethanol to north and central Texas. Union Pacific Railroad serves the facility and can store up to 130,000 barrels of storage.

Vice-President of U.S. Development Group, LLC noted, “This terminal will help bring cleaner air to the Dallas-Forth Worth area by more efficiently distributing fuel-grade ethanol to the metroplex. The Dallas Fort Worth Rail Terminal forms a key link in the supply chain needed to meet growing demand for cleaner-burning blended fuel. The ability to pump ethanol directly to gasoline blend terminals via pipelines significantly reduces the time and cost associated with secondary trucking.”

U.S. Development Group has five additional terminals across the country, two of which also handle fuel grade ethanol. These facilities are in Linden, New Jersey and Baltimore, Maryland.

Currently, there are 38 E85 fueling locations to serve nearly 600,000 flexible fuel vehicles in the state of Texas.

More than 100 new alternative-fuel vehicles will be on the road for AT&T. The nationwide communications company is launching a new fleet of Compressed Natural Gas vans, 65 electric hybrid cars and 15 electric hybrid conversion work trucks in 30 cities across the U.S. Start looking for them in June.

The vehicles will be embedded into AT&T’s workforce as operational components of its fleet. AT&T will measure and track fuel efficiency, greenhouse gas emissions, operating costs, performance and driver satisfaction of each vehicle.

AT&T estimates that its use of these alternative-fueled and more fuel-efficient vehicles will reduce greenhouse gas emissions by 124 metric tons and conserve nearly 34,395 gallons of fuel annually.

A new fleet of off road vehicles in the U.S. Air Force will operate on E85 fuel. MAG International Inc., the newest distributor of Flextek Flex Fuel Conversion technology, will help the Air Force meet its goal of reducing its exhaust emissions.

The U.S. Air Force recently accepted MAG’s bid to provide a new fleet of off road vehicles designed to reduce exhaust emissions. Reducing the exhaust emissions of its fleet is a major concern of the Air Force. The vehicles supplied by MAG will use Flextek technology to allow the vehicles to utilize emission reducing E85 fuel.

As an OEM Flextek distributor, MAG will be marketing to military installations and other government facilities as well as private off-road vehicle purchasers including farms, refineries, stadiums, hotels, resorts, casinos, amusement parks, airports, building complexes, universities and colleges.

The National Ethanol Vehicle Coalition reports that Flex Fuel U.S., a member of the coalition, has announced that the U.S. Environmental Protection Agency (EPA) approved an E85 conversion kit which fits the 2006 Dodge Charger 5.7 liter Hemi.

The system is the first and only E85 conversion unit certified by the EPA for passenger and fleet vehicles. A copy of the EPA certificate issued to Flex Fuel U.S. can be found on their homepage at: www.flexfuelus.com. With this Federal certificate of conformity, the Flex-Box Smart Kit™ is approved for the most popular Dodge vehicles: the Dodge Charger, Dodge Magnum, Chrysler 300 2wd and AWD 5.7L Hemi.

The FLEX-BOX SMART KIT™ is an easy-to-install system that lets you operate your vehicle on any combination of ethanol and gasoline. One can fill up on E85 (85% ethanol and 15% gasoline), E20 (20% ethanol and 80% gasoline), E10 (10% ethanol and 90% gasoline) or pure gasoline.