Domestic Fuel

Pilot Travel Centers has added three more locations where Ethanol 85 can be purchased. Pilot now offers E85 at five locations statewide. E85 contains 85 percent ethanol and is for Flex Fuel vehicles only.

The stations include Strawberry Plains Pike and Crossville locations in East Tennessee and in Dickson, Tenn., along Interstate 40 west of Nashville. Earlier locations were in Knoxville at Northshore Drive at Pellissippi Parkway, and Walker Springs Road. They offered the fuel beginning in 2007. Pilot, based in Knoxville, bills itself as the largest operator of travel centers in the country with more than 300 locations in 40 states.

Last Friday, four of the Tennessee Pilot locations offered special pricing on E85 as part of its introduction of new east Tennessee stations. Jimmy Haslam, CEO of Pilot Travel Centers said, “We are committed to our customers, our community and our environment. Providing E85 meets a strong consumer demand and helps the environment—a win-win for all involved. We plan to continue installing E85 pumps as it is feasible.”

The National Research Council (NRC) is currently conducting an ongoing study on the impacts of expanded biofuel production. NRC, which is part of the National Academy of Sciences, hosted a workshop last week to receive feedback from people on both sides of the debate. The Renewable Fuels Association (RFA) represented the ethanol industry and Geoff Cooper, RFA’s Vice President of Research and Analysis, was on hand for the meeting.

Prior to the event, however, Cooper prepared some responses in advance of the meeting. There were six questions proposed by NRC that RFA responded to four in detail. Specifically, the questions asked and responded to were:

• 1. What are the costs and disruptive effects on the economy and environment of meeting the RFS mandate by 2022?
• 2. In your view, what are the potential beneficial impacts of the RFS mandate in addition to improving energy security and reducing greenhouse gas emissions?
• 3. Which groups would gain or lose most from meeting the RFS mandate?
• 4. What are the most important barriers to meeting the RFS mandate?

In response to the first two questions, Cooper wrote, “We believe the positive economic and environmental effects associated with meeting long-term RFS2 requirements far outweigh any potential negative consequences. Further, some “disruptive” effects are in fact positive for the U.S. economy and environment. The disruption of crude oil markets that would result from meeting RFS requirements is one example.”

In response to the second question above, Cooper wrote, “We believe it is important that committee members have a full understanding of all of the beneficial impacts that would result from meeting RFS2 requirements so that likely benefits can be properly weighed against potential risks.”

Benefits highlighted by RFA for the committee include increased energy security, reduced dependence on foreign oil, reduced GHG emissions, increase in green jobs, increase in farm income and decrease of gas prices at the pump. Cooper also noted that the barriers to success of the RFS include blend wall limits, infrastructure and logistics, and access to capital, to name a few.

You can read the full response from RFA by clicking here.

Back by popular demand, Phibro Ethanol Performance Group, along with Fremont, Fermentis and Novozymes are hosting the second Process Optimization Seminar targeted for plant managers, operations managers, technical managers, lab managers and general managers. This interactive seminar is focused on helping ethanol plants increase their efficiency and profitability through learning about new technologies available for the fermentation process. This two half-day seminar is being held in Indianapolis, Indiana on March 30-31 and the early registration deadline is March 10.

I was able to spend a few minutes with Tom Slunecka, the VP of Marketing for Phibro Ethanol Performance Group to learn more about the seminar and why fermentation is so important. “The life blood of the plant is optimizing alcohol production within that plant. That’s really what drives the profitability of a plant. Of course, we have to buy our corn right and sell our ethanol right and sell our distillers right but if we’re not optimizing every kernel of corn for every amount of ethanol it can possibly produce, we’re leaving money on the table.”

Slunecka continued, “That’s really what this seminar is all about. It’s making sure that the people involved with the most important details of the plant have the optimum information to maximize the profitability of the plant.”

The location of the seminar was designed to be within driving distance of many ethanol plants and Slunecka explained that the class size is small, and limited, so that the exchange between instructors and participants is high, yet the price point is low. Click here to learn more and to register.

Listen to my full interview with Tom below.

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Ethanol issues were in the spotlight when National Corn Growers Association president Darrin Ihnen of South Dakota took the stage at the Commodity Classic general session on Friday.

Ihnen talked about the importance of using higher blends of ethanol in the fuel supply. “The EPA is studying the issue and everything they’ve indicated to this date looks very promising,” said Ihnen. “They said it will probably be late summer now and we are very hopeful it will come then.” He says that is a top priority for corn growers and “this is a game changer” that will give them an opportunity to use more corn.

Ihnen also talked about the climate change issue and other important issues during an interview with session moderator Mark Mayfield which is available in the player below.

Commodity Classic Photo Album

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During the general session of the 2010 Commodity Classic, American Soybean Association president Rob Joslin, who stressed the importance of getting the biodiesel tax credit back in place.

“We need it now,” Joslin said. “It’s costing U.S. soybean farmers 25 cents for every bushel. On my 500 acres of soybeans, that’s over $6000 a year. Couple that with all the jobs loss, that’s our goal right now.”

Joslin says the tax credit is back in the second jobs bill that is being considered by the Senate right now. “I kinda feel like a bride that goes to the altar that comes away without a ring. We’ve been to the altar 2 or 3 times and we haven’t gotten a ring on our finger yet.”

Rob was interviewed by session moderator Mark Mayfield about this issue and others important to soybean producers – listen to that exchange below.

Commodity Classic Photo Album

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The Global Renewable Fuels Alliance (GRFA) has come out today calling a recent OPEC report “self serving.” The report, co-written by the former Secretary General of the OPEC oil cartel, criticized biofuels while according to GRFA, ignoring the overwhelming evidence on the devastating impact of crude oil on the environment and on our economies. The report will be released during the International Energy Forum’s meeting in Cancun, Mexico this month.

“This report would be laughable if the risks associated with our dangerous reliance on oil were not so serious,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance. “OPEC has dedicated its history to keeping oil prices artificially high and combating any threat to the shocking wealth of its members. It was only a matter of time until it attacked biofuels.”

GRFA notes that biofuels represent a competitive threat to crude oil but also acknowledge that the implementation of renewable fuels standards by governments around the world have the practical effect of lowering prices at the pump.  A trend, not surprisingly, that OPEC has no interest in seeing continue. For example, according to a report from Merrill Lynch commodity strategist, “retail gasoline prices would be $21/bbl higher, on average, without the incremental biofuel supply.”

Countries around the world are expanding their biofuels production to meet increased energy needs at the same time as addressing growing greenhouse gas emission concerns that lead to global climate change. In 2009, global biofuels production exceeded 80 billion litres.

According to Baker, the report ignores the horrific impact on economies due to high crude oil prices, especially those in developing nations as well as fails to address the positive impact biofuels production has on fuel supplies and prices. “In an era of ever increasing oil prices, biofuels production is more important than ever,” added Baker. “Our industry is calling on the OPEC oil cartel to embrace biofuels and the competition that it brings to the global fuels markets instead of stifling competition and keeping prices high.”

Baker concluded, “I can only conclude that this self-serving piece of research is an attempt to slow down biofuels production. Perhaps OPEC finally sees biofuels as competition. If that’s the case I suspect we can see similar future so-called reports on biofuels from OPEC.”

“I’m not troubled by getting it right as long as we get it right. And I think we’re headed in the right direction. I’m anticipating we’ll see some increase in the blend rate,” said Secretary of Agriculture Tom Vilsack during a press conference at Commodity Classic when asked about EPA’s delaying the decision to increase the blend rate to E15.

However, prior to addressing the status of the E15 Waiver, Vilsack began by noting that biofuels are a good way to bring prosperity and economic vitality to all regions across the country. Rural America is disappearing and farmers have been one of the hardest hit groups during this financial crises. He explained that its not just growing the crops that help farmers but also the jobs it creates for residents of rural communities who work in the ethanol plants and other companies that are tied to biofuels production.

Circling back to E15, approving a higher blend is essential to reaching the country’s goal of producing 36 billion gallons of biofuels by 2022. Per the mandates as set by the EPA as part of the Renewable Fuels Standard, nearly 10 percent of all fuel will be blended with E10 in 2010. Without higher blends, including E85, there is no where for the fuel to go.

Yet earlier this week, the EPA announced that it was delaying any decision on increasing the blend level to E15 until the end of the summer. Vilsack commented that the purpose of the delay is due to ongoing testing by the Department of Energy to determine what engines can use the higher blend without ill effects. It has already been established that newer vehicles, and all flex-fuel vehicles can use the higher blend safely, “Which suggests to me that we’re going to see an increase in the blend rate,” said Vilsack. He then noted that it will be important to use rural development resources to make sure the distribution systems create the opportunities for people to use higher blends.

You can see photos from Commodity Classic here.

You can listen to Vilsack’s comments on biofuels here.

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A man who is considered to be the father of genomics says that if algae-based fuel makers can’t start making billions of gallons of fuel, they are just playing with investors’ money.

This post on earth2tech.com says Craig Venter, the founder of synthetic biology startup Synthetic Genomics, made the remarks at the Wall Street Journal’s Economics conference this week:

In other words the algae companies need to be able to reach the scale at which the oil companies currently operate to be competitive. “That’s the real bugaboo for everybody,” said Venter. To address that hurdle, last July Synthetic Genomics announced that it was partnering with ExxonMobil on a $600 million algae biofuels program.

Venter said the synthetic genomic process could one day fundamentally change not just fuel and transportation, but food supply, medicine, and clean water. Venter and his crew at the J. Craig Venter Institute have already created a completely synthetic bacterial genome, which they claimed back in 2008 was the largest man-made DNA structure ever. Now Venter and the researchers are “extremely close” to activating the synthetic bacteria chromosome in a new cell which would make “the first synthetic species,” and will be their “proof of concept,” as Venter put it at the conference. That’s some crazy stuff.

The article goes on to say that some biofuel companies, such as Synthetic Genomics, are forming partnerships with some big oil companies to address the issue. In addition, Algae biofuel maker Sapphire Energy says it will be able to produce 1 million gallons of algae-based biodiesel and jet fuel per year by next year and a billion gallons per year by 2025.

The advanced biofuels industry is putting a bug in Congress’ ear, calling for lawmakers to allow for an investment tax credit that will help advanced biofuels makers get money to get their projects up to commercial scale and become eligible for another operating credit.

Biomass Magazine explains that the industry would be eligible for a federal production tax credit of 30 percent, but the incentive is unused because there are no operating commercial-scale facilities:

Nearly 40 industry-relevant groups such as the Renewable Fuels Association, BlueFire Ethanol, Coskata, Enerkem, Verenium, Range Fuels and Iogen signed a letter to U.S. Sen. Max Baucus, (D-Mont.), Charles Grassley (R-Iowa), Rep. Dave Camp (R-Mich.)and Rep. Charles Rangel (D-N.Y.), which points out that there will be no commercial cellulosic biorefineries commissioned before 2011, at the earliest. The principle cause for commercialization delay is lack of funding, the letter states, due to the severe plummet of the U.S. economy.

According to U.S. Department of Energy numbers, it costs $250 million to get a 50 million-gallon-a-year advanced cellulosic biofuel operation up and running, and right now, that’s some tough scratch to come up with in this economy.

One biodiesel standard is under review, while another one has been revised.

This post on Truckinginfo.com says ASTM International is considering a cold weather biodiesel standard:

Through the ballot, the group will decide if changes need to be made within the specification, D6751. If changes are needed, the group will determine whether they should apply to all biodiesel, or whether the changes should apply to a new separate grade of biodiesel. According to the NBB, the new grade would be intended for use in extremely cold weather.

The ASTM Filter Clogging Work Group and the ASTM Biodiesel Task Force will decide the exact form of the ballot and its limits. The results will likely be presented at the June ASTM meeting.

Meanwhile, The American Society of Agricultural and Biological Engineers (ASABE) has revised its biodiesel fuel testing standard. This ASABE press release posted on ThomasNet News says ASAE EP552.1, Reporting of Fuel Properties when Testing Diesel Engines with Alternative Fuels Derived from Plant Oils and Animal Fats, will cover the reporting of testing of any alternative fuels derived from plant oils and their blends with petroleum diesel:

The original document was developed in the 1990s. Since that time, with the rapid growth of the biodiesel industry, the procedures and practices in reporting the testing of such alternative fuels have evolved considerably. The revised document reflects current practices and international standards, with input obtained from experts in industry, academia, and public service.

You can read more about the ASABE standards here.