Domestic Fuel

Will corn crop meet demand of both food and fuel? Even before the USDA planted acreage report was released this week, the Renewable Fuels Association (RFA) had the answer to that question posted on YouTube.

In one of three recent videos posted by the ethanol organization, RFA Vice President of Research Geoff Cooper says the 2009 corn crop is going to be another huge crop. “Probably the second or third largest crop in history,” Cooper says. “Which will be more than sufficient to meet very strong demand for livestock feed, for exports and what will likely be record demand for ethanol production. All of those demands will be met and there will still be a healthy surplus of corn left.”

In another video, Cooper answers the question, what is international indirect land use and why is it controversial? The video is only two minutes long, which is hardly enough time to even begin to explain the controversial theory, much less refute it - but it does get the main point across. RFA also has another short video with Cooper explaining why ethanol is not to blame for higher food prices.

Two Arizona State University researchers working on biodiesel projects have been nominated for the 2009 World Technology Award, which recognizes individuals and corporations from 20 technology-related sectors.

They’ll be headed to New York for the World Technology Awards gala ceremony on July 16, 2009 at the conclusion of the two-day World Technology Summit:

Scientists Qiang Hu and Milton Sommerfeld in the College of Technology and Innovation at ASU’s Polytechnic campus, have been selected as nominees for the award for their work with algal feedstocks and biodiesel fuel. In November 2008, TIME magazine selected the researchers’ work as one of the top 10 best innovations for 2008.

Nominees for the 2009 World Technology Awards were identified based on an intensive, global process over a period of many months in which current individual WTN members — primarily elected WTN Fellows from previous awards cycles who now number over 1000, spread out over 60 countries — as well as others made their nominations based on who they think is doing the innovative work in their field of the greatest likely long-term significance. After the WTN gathers further information from nominees, WTN individual member then vote on their preferences within their category. The top five selections in each category are announced from the podium on stage at the awards ceremony, and inducted into the WTN membership as Fellows. The winner receives an award on stage and makes comments about their innovative work to those assembled.

You can find more information at www.wtn.net.

The combination of more corn planted this year than expected and more corn stocks could mean a better chance of the ethanol blend rate being increased.

According to Terry Francl, senior economist with the American Farm Bureau Federation, “For the 2009/2010, the greater availability of corn supplies makes it more likely that the EPA will increase the ethanol blend rate from the current 10 percent to 12 percent or 13 percent, effective Jan. 1, 2010,” Francl said. “That will in turn utilize some 400 to 500 million more bushels of corn in the 2009/2010 crop year and reduce corn ending stocks by 300 to 400 million bushels. It is also important to remember that about one-third of the corn that is utilized as ethanol comes back as distillers dried grain, which replaces corn and some protein meal.”

USDA’s planted acreage report out this week estimated the second largest corn crop since 1946 at 87.0 million acres, and corn stocks were pegged at 4.27 billion bushels as of June 1, up 6 percent from June 1 of last year.

In a move to fight a proposed change that would basically shut out soy-based biodiesel… the bulk of the nation’s biodiesel production… from the Renewable Fuels Standard, the National Biodiesel Board has launched a Web site to give people the tools to make comments on the Environmental Protection Agency’s proposal.

The RFS2 Action Center gives those who want to stop the change examples of comments, where and how to send the comments, and this letter from NBB CEO Joe Jobe himself:

Dear Biodiesel Stakeholder:

Joe Jobe, CEO
National Biodiesel Board

The Obama administration embarked on a National Rural Tour this week that will include discussions about green jobs, a new energy economy, climate change and renewable energies.

During an interview for the National Association of Farm Broadcasting with Michelle Rook of WNAX, Yankton, SD, Obama was asked about the role renewable fuels will play in the future for rural America. “Obviously, I come from a farm state - Illinois - and ethanol has been a big boon for a lot of rural communities,” the president said. “But we also are recognizing the key for us is to move into the next generation of biofuels, how can we use wood chips and refuse and switchgrass and how can we improve the efficiency of first generation biofuels. Farmers are going to be critical to that entire process.”

“We want to be able to compete with countries like Brazil that now are running basically their entire automobile fleet on biofuels,” he continued. “If Brazil can do it, there’s no reason why America can’t do it.”

Obama also commented on the climate change bill passed by the U.S. House of Representatives last week, saying that the legislation provides “a whole host of opportunities for rural communities to profit even as they are helping to achieve America’s energy independence.”

The first stop on the administration’s rural road trip was in Wattsburg, Pennsylvania on Wednesday where the topic was rural broadband service. Future dates where energy will be the focus include July 18 in Ringgold, Virginia; August 12 in Bethel, Arkansas; and August 16 in Zanesville, Ohio.

Listen to Obama’s ethanol and climate bill comments here:

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Investors are getting back into green investing in a big way, and venture capital into solar and biofuels are two of the big drivers.

An excerpt from a Greentech Media report posted on MarketWatch.com says that investors put $1.2 billion into 85 deals during the past quarter… compared to just $836 million in 59 deals during the first quarter of this year.

“The recent quarter’s balanced distribution of sectors that attracted capital underscores cleantech’s breadth and diversity of opportunity, one of the key drivers behind why cleantech remains an enduring area,” said Ira Ehrenpreis, General Partner at cleantech VC, Technology Partners.

One of the drivers for steady second quarter venture investment was the promise of stimulus monies offering startup investors a non-dilutive funding source. Meanwhile, early-stage and late-stage investments dominated, while mid-stage funding was harder to come by, and the average round sizes were slightly smaller. There were no giant $100 million+ solar or biofuel rounds as in 2008.

Greentech analysts believe that this year will be one of consolidation and development, but green sector investments will really take off in 2010 and 2011.

Growth Energy is building a team from the grassroots to speak up for the ethanol industry.

CEO Tom Buis says they created the eTeam to be “an army of thousands of ethanol consumers and supporters who are willing to take action to spread the message that ethanol is a clean, green renewable fuel available today.”

Buis says they already have 1200 eTeam members signed up who are armed with factual ethanol information to comment on blog posts, write letters to the editor, speak to local organizations, participate in community events, and contact their state and national lawmakers about policy issues.

“I’ve found that there are so many advocates out there that if they would get energized and participate, we would be winning all these debates in the media and in the halls of Congress and in the statehouses,” said Buis. “Now’s the time we have to stand up in a proactive manner and go out and tell that good story. Tell people that we’re a low carbon fuel, we emit less greenhouse gases than gasoline, tell them we create jobs and we are helping our nation address a problem that has existed for the past 35 years, that literally our economy and our nation are held over a barrel - an oil barrel.”

Growth Energy is reaching out to people in rural communities where ethanol has created jobs, to farmers, and to consumers who believe in the benefits of ethanol for the economy, the environment and energy security. Buis urges people to sign up for the eTeam by going to GrowthEnergy.org and clicking on the Get Involved button.

Sign up for the eTeam here.

Listen to or download an interview with Tom Buis about the eTeam here:

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The Wisconsin Bio Industry Alliance (WBIA) hosted a media event today to discuss the importance of increasing the number of blender pumps in Wisconsin. Working in partnership with representatives from the Renewable Fuels Association, the American Coalition for Ethanol, Growth Energy, the Wisconsin Corn Growers Association and the American Lung Association, Wisconsin’s bio fuel producers are drawing attention to the benefits of increased ethanol use in Wisconsin.

While there are more than 100 locations across the state where consumers can purchase gasoline blended with up to 85 percent ethanol, there are fewer than 30 locations across Wisconsin where consumers have the choice to purchase fuel blended with different levels of ethanol. Blender pumps allow consumers to determine what percentage of gasoline and ethanol they would like to purchase for their vehicle. When visiting the fueling station, consumers are able to select a variety of fuels, including E10, E20, or E85.

“Consumers should be given a choice. Whether you want a gasoline blended with 10 percent ethanol for your boat or small engine, or you chose to purchase ethanol blended with 20 percent or 85 percent ethanol for your flex fuel vehicle, blender pumps give you those options,” said Joshua Morby, Executive Director of the WBIA. “We’re working closely with our partners nationally to increase the number of blender pumps not only in Wisconsin but throughout the United States.”

The newest member of the U.S. Senate says he is pro-ethanol. In an interview with MinnPost.com today, Senator-elect Al Franken (D-MN) expressed his support for ethanol.

“What we’re talking about here is the science of how ethanol affects our carbon footprint,” Franken said. “The science to me tells me it helps. I’ve looked at this a lot, and it seems to me that ethanol already helps our carbon footprint and it’s only getting more efficient in the way it’s produced. Corn ethanol is a step on the way to cellulosic ethanol, which is also going to benefit Minnesota. I’m in the pro-ethanol camp.”

Franken’s campaign website gives his views on renewable energy and the need for America to reduce its dependence on foreign oil.

I think we need a new “Apollo project” – this time to fundamentally change our energy policy and end our reliance on foreign oil.

This “Apollo project” should provide financial support for research into new forms of renewable energy and development of currently-identified sources to make them more efficient. Of course I’m talking about corn ethanol. But I’m also talking about cellulosic ethanol and other biofuels. I’m talking about solar power. And, especially here in Minnesota, I’m talking about wind power. We live in a windy state!

This is the car you will drive if the Climate Bill passes the Senate.

A new Rasmussen Reports national telephone survey shows that 42 percent of Americans oppose the climate bill that passed the House last week because respondents believe the bill will hurt the economy. Well, the more I dig into the nuances of the proposed climate bill, the more I realize that this bill will do more damage than good.

Here are five reasons why the climate bill will ruin your life:

1) You won’t be able to sell your house if it doesn’t pass an energy audit. If your house fails, you’ll have to reduce the price of the house or update the house until you can pass the audit. Here’s an incentive that’s sure to rejuvenate the housing market.

2) The bill would require that all buildings built in the U.S. conform to meet California Building Code Standards. Who needs an affordable house anyway?

3) Your energy bills and other expenses will be higher. The republicans are complaining that the bill would raise yearly electricity bills $175 per year by 2020 but some experts say that an average family’s expenses will go up between $1,200 to $3,000 per year. Break out the summer fans and winter sweaters and blankets.

4) CRAP and RAID - also known as cap and trade.  The legislation mandates a 17 percent cut in greenhouse gas emissions by 2020 and an 83 percent cut by 2050. These cuts will be “enforced” in part through a cap and trade system which puts a price on CO2 emissions. With a program this well thought out, how could it not work?

5) The government will tell you what kind of car you can drive. No more gas guzzling SUVs people. Start peddling - you need the exercise anyway.

Now, I could be wrong. The Republican filibuster on CSPAN last Friday nearly put me in a coma, but seriously people, this bill needs an overhaul.