Domestic Fuel

A Texas corn grower says the “feed versus fuel” debate is based in fallacy.

Texas Corn Producers Board member Wesley Spurlock of Stratford has been speaking to groups across the Midwest explaining how U.S. corn farmers continue to grow a crop abundant enough to meet all growing demands and he has gained attention from industry publications looking to find the truth behind the headlines.

“To put it simply, growth in demand from the ethanol industry has mirrored an increase in productivity that yields larger corn crops,” Spurlock said. “We are still supplying the livestock industry with the corn that they need for feed, but we now have a market that utilizes an increasingly abundant resource to help solve our energy problems also.”

Listen to an interview with Sprulock in the National Corn Growers Association’s podcast series “Off the Cob” discussing how corn farmers are growing a larger crop on the land already in production while decreasing inputs used. During this interview, he also discusses the innovations facilitating increased yield trends, how the Texas drought plays a major role in recent cattle industry shifts, and the amazing story of modern American agriculture.

REG is ready to go public.

Renewable Energy Group has announced the pricing of its initial public offering of 7,200,000 shares of common stock at a price to the public of $10.00 per share.

The shares are expected to begin trading on The Nasdaq Global Market on January 19, 2012 under the symbol “REGI.” Of the shares of common stock in the offering, Renewable Energy Group is offering 6,857,140 shares and selling stockholders are offering 342,860 shares. In addition, Renewable Energy Group has granted the underwriters a 30-day option to purchase up to 1,080,000 additional shares of common stock to cover over-allotments, if any.

Additional details available from the REG website.

A new blender pump is now available at Trotter Service in Arcadia, Neb.

This E85 blender pump is one of approximately 60 in Nebraska to offer the renewable fuel, ethanol. This station will offer unleaded, E10 and other mid-level ethanol blends including E85 and diesel. Trotter Service in Arcadia is a full service station, according to the Nebraska Ethanol Board and the Nebraska Corn Board.

More than 117,000 Nebraska motorists currently own a flexible fuel vehicle which can run on any blend of ethanol and gasoline, up to E85. To confirm if a vehicle is an FFV, drivers can check their owner’s manual or their gas cap for the flex fuel emblem.

“E85 is cleaner than gas. It’s produced right here in Nebraska and more and more vehicles can use it every day,” said Todd Sneller, Nebraska Ethanol Board’s Administrator. “When flex fuel drivers fill up on E85, they’re strengthening Nebraska’s economy, making our country more energy independent and being easier on the environment.”

“Giving consumers a choice is also another benefit. This new blender pump will offer flex fuel vehicle owners a fuel choice based on price, performance, and availability,” said Kim Clark, Ag Program Manager with the Nebraska Corn Board.

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

Warm up with some hot deals on fuel at the High Plains Cenex Station in Plainview, Minn. this Saturday.

From 11 a.m. to 1 p.m., the station will be celebrating the installation of a new blender pump by promoting E85 fuel with an 85 cent per gallon discount. The new blender pump not only distributes E85 fuel, but also a range of mid-level ethanol blends not previously available. These fuels are also being discounted during the promotion: 50 cents off per gallon of E50, 30 cents off per gallon of E30 and 20 cents off per gallon of E20.

There will be deals for diesel vehicle drivers too including a discount of 20 cents per gallon on cleaner burning B5 biodiesel. There is a 30 gallon limit per vehicle during the promotion.

E85, E50, E30 and E20 fuels are for use in flex fuel vehicles (FFVs) only. There are approximately a quarter million FFVs registered in Minnesota. All diesel vehicles can use B5 biodiesel. Minnesota has about 360 E85 stations in the state.

Supporters of the promotion include the Olmsted/South Wabasha County Corn & Soybean Growers, Minnesota Corn Growers Association, Minnesota Soybean Growers Association, Minnesota Clean Air Choice Team and the American Lung Association in Minnesota, which supports the use of E85 and biodiesel fuels as part of an overall strategy to reduce and prevent air pollution.

U.S. Congressman Pete Olson (R-TX) has introduced a bill in the House that would allow ethanol “produced from domestic fossil fuels other than petroleum” to qualify under the Renewable Fuel Standard (RFS2).

The Domestic Alternative Fuels Act would amend the Renewable Fuel Program of the Clean Air Act “to allow domestic alternative fuel to be used to satisfy a portion of the required applicable volume of renewable fuel.”

If passed, it would allow ethanol produced from domestic hydrocarbons to satisfy the RFS requirement for using conventional biofuel, such as corn-based ethanol, to reduce the quantity of petroleum used in transportation fuel.

The provision would include ethanol made from coal, petroleum coke or natural gas, pioneered by technology developed by the Dallas-based company Celanese.

Steven Sterin, Celanese Corporation’s Chief Financial Officer and President of its Advanced Fuel Technologies business, issued the following endorsement of this significant legislative development.

“Our nation’s plentiful natural energy resources, such as natural gas, are a tremendous asset and can drive the economic growth of the United States for years to come,” said Celanese CEO Steven Sterin. “Rep. Olson’s bill creates conditions under which American innovation can achieve these goals without using valuable food resources for the production of liquid fuel.”

Rep. Olson’s bill, the Domestic Alternative Fuels Act of 2012, has bipartisan support in the House of Representatives, including cosponsors Rep. Joe R. Pitts (R-PA), Rep. David B. McKinley (R-WV), Rep. Gene Green (D-TX), Rep. Charles A. Gonzalez (D-TX), and Rep. Jim Costa (D-CA).

January 19 is the deadline to pre-register for next week’s 6th Annual Iowa Renewable Fuels Summit in Des Moines, an event that no one in the ethanol and biodiesel industries should miss.

Among the highlights of the summit will be addresses by Governor Terry Branstad, four-star General Paul Kern (U.S. Army, ret.), former Reagan National Security Advisor Robert McFarlane and Executive Director of the Institute for the Analysis of Global Security, Dr. Gal Luft. And that’s just the morning session of the summit.

After lunch, National Biodiesel Board CEO Joe Jobe will outline the national landscape for biodiesel on the heels of a record year of biodiesel production and what to expect in 2012 and beyond. That will be followed by a panel on “Synergies of Livestock and Ethanol” moderated by Iowa Secretary of Agriculture Bill Northey will moderate a panel representing Iowa’s livestock and corn industries that will discuss the dynamics between ethanol and livestock production. Joining Secretary Northey will be Matt Deppe with Iowa Cattlemen’s Association, Craig Floss with Iowa Corn Growers Association and Randy Ives with Gavilon Group LLC. The final event of the day will be a panel discussion on “E15 – the New Consumer Choice” where Ron Lamberty, American Coalition for Ethanol, and Greg Emick, W & H Coop, will share what consumers need to know in preparation for future use of E15 in 2001 and newer vehicles.

It’s all happening on January 24 from 8:30 am to 3:30 pm at the new location of Veterans Memorial/Community Choice Credit Union Convention Center in Des Moines. Registration is free and open to anyone with an interest in renewable fuels. Rooms are still available at the Downtown Des Moines Marriott for the conference.

Hope to see you there!

The Process Optimization Seminar coming up February 8-10 in St. Paul, Minnesota is now officially sold out.

The event is organized by Fermentis, Fremont Industries, Novozymes and Phibro Ethanol Performance Group and is the seventh in a series that have been held in different areas of the country over the past two years. The seminars have been organized for both plant managers and operators. The number of participants in the seminars is kept intentionally small to allow for maximum educational opportunity and interaction.

If you missed this one, the next seminar will be held in the summer in Kansas City. Details will be coming soon.

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In our latest ZimmPoll we asked the question “Do you think there is currently an “Ag Bubble?” It looks like most think so since 66% said Yes and 34% said No. That’s kind of a pessimistic outlook don’t you think? If you think we’re in a bubble please feel free to comment on why. We’d love to hear your thoughts.

Our new ZimmPoll is now live. We’re asking the question, “How will proposed changes to child labor in agriculture regulations affect farms?” Last fall the Department of Labor proposed changes that many believe could have major impacts on family farms and farm life (proposed rule – pdf). At best it seems like there are some good intentions without careful consideration of the consequences and then there’s always that “how does the Dept. of Labor interpret the rules thing.” A public comment period ended on December 1, 2011.

Here’s some language about the proposed changes from an early news release:

The proposal would strengthen current child labor regulations prohibiting agricultural work with animals and in pesticide handling, timber operations, manure pits and storage bins. It would prohibit farmworkers under age 16 from participating in the cultivation, harvesting and curing of tobacco. And it would prohibit youth in both agricultural and nonagricultural employment from using electronic, including communication, devices while operating power-driven equipment.

The department also is proposing to create a new nonagricultural hazardous occupations order that would prevent children under 18 from being employed in the storing, marketing and transporting of farm product raw materials. Prohibited places of employment would include country grain elevators, grain bins, silos, feed lots, stockyards, livestock exchanges and livestock auctions.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

Americans from the mid-Atlantic to the Northwest will soon be hearing a lot more about the benefits of soy biodiesel.

The United Soybean Board (USB) and soybean checkoff is partnering with nine Clean Cities Coalitions in the 2012 biodiesel and Bioheat® communications program to spread the word about the only commercially available advanced biofuel.

“Clean Cities coalitions are really great organizations,” says Mike Beard, USB director and soybean farmer from Frankfort, Ind. “This program helps them, and it helps us to get the word out about clean, efficient soy biodiesel.”

Clean Cities Coalitions participating in the 2012 reimbursement program include:
• Alabama Clean Fuels Coalition
• Greater Washington Region Clean Cities Coalition
• Iowa Clean Cities
• Kansas City Regional Clean Cities Coalition
• North Dakota Clean Cities
• Triangle Clean Cities Coalition
• Twin Cities Clean Cities Coalition
• Virginia Clean Cities
• Yellowstone-Teton Clean Energy Coalition

Most of the coalitions will also be working with their state soybean checkoff organizations on the promotions. This year, the soybean checkoff committed nearly $200,000 to assist these chapters in communicating the benefits of soy biodiesel and Bioheat through radio public service announcements, outdoor advertising, informational workshops for energy users and distributors, promotional events, and many other activities.

Attendees of the McCoy Freightliner Green Transportation Conference in Oregon were able to see and hear firsthand the benefits of propane autogas from Blue Star Gas President Jeff Stewart.

Stewart provided expert insights and three BlueStar autogas vehicles for test driving. The conference also included informational sessions on autogas and other alternative fuels, along with details on grants, tax credits and financing for shifting fleets to clean fuel.

Propane autogas is the third most widely used fuel in the world, powering more than 17 million vehicles globally. Ninety percent of the U.S. supply is made in America. Autogas costs about $1.25 less per gallon than gasoline, and because autogas is also a cleaner burning fuel, fleets often experience reduced maintenance costs.

As the flagship West Coast fuel provider for Alliance AutoGas, Blue Star Gas supplies fleets from California to Washington State with affordable, American-made autogas. A variety of experts, policy makers and manufacturers from organizations such as Eaton Corporation, Freightliner Trucks and Cascade Sierra Solutions were also on-hand at the event to offer valuable insight on current green options for the trucking industry.

“I am thrilled to have the opportunity to educate leaders in the Oregon transportation industry about autogas. It’s an ideal clean fuel for light-duty fleets that’s readily available today,” said Stewart, a past chairman of the National Propane Gas Association Benchmarking Council. “With so many green energy options on the market, it can be overwhelming to identify the best fuel to power your fleet. But, for those who want to save money and reduce harmful emissions without sacrificing performance, autogas is the ideal fuel.”

BlueStar Gas vehicles available for test drives during the event included an autogas-powered Ford Expedition, a Ford Crown Victoria and a Chevy 3500 utility truck.

“Events like the conference held by McCoy Freightliner help spread awareness about autogas one driver at a time, since they are able to discover first-hand the power of autogas vehicles,” said Stewart. “In fact, Blue Star provides test drives and demonstrations for West Coast fleet owners and managers on an ongoing basis. There’s no better way to experience the performance of an autogas vehicle than by getting behind the wheel of one.”

BBI International and NEAtech have formed a joint venture, called BBI Consulting Services, to offer bioenergy consulting to thousands of companies and organizations worldwide, as well as state and federal departments in the United States.

BBI International originally started as a bioenergy consulting firm in 1995 and has since grown into a media and events company focused on growing the bioenergy industry. Founded in 2009, NEAtech is a technology-based engineering and consulting firm specializing in advanced biofuels, biomass energy, and biotechnology projects. Having already helped hundreds of companies plan and execute successful projects, this new joint venture with NEAtech will reintroduce BBI International’s consulting service to thousands of new businesses worldwide.

Dr. Rafael Nieves and Mark Yancey of NEAtech, two experienced bioenergy consultants, are leading this group. Nieves has worked in the bioenergy sector for more than 28 years. He has extensive experience nationally and internationally managing bioenergy projects in the U.S., Mexico, the Dominican Republic, El Salvador, Puerto Rico, Brazil, Australia, Philippines, Ghana, Armenia, Indonesia and the Ukraine.

Yancey has 35 years of experience in the fields of bioenergy and environmental engineering including extensive experience in project development and economic analysis for first and second generation biofuels facilities. His expertise is in the development of bioenergy projects including development of business strategies and financial, market and technical analyses of projects and renewable energy opportunities.

“We are excited about offering a consulting service to our customers,” said Joe Bryan, president and chief executive officer of BBI International. “This venture is the first step in helping companies associated with BBI International gain valuable insight on their current and future projects.”

“This venture will allow us to combine our expertise with BBI’s knowledge and resources,” said Nieves, CEO of NEAtech.

Agriculture Secretary Tom Vilsack is hosting a media roundtable with aviation business leaders today to discuss the important role of American-produced biofuels in the civilian aircraft and airline industry, and in the military.

Participants in the discussion with Vilsack will include John Tracy with The Boeing Company and Billy Glover of Boeing Commercial Airplanes; Alex Marren with United Continental Holdings and Jim Rekoske, Vice President and General Manager of Renewable Energy & Chemicals for Honeywell.

In January, 2010, Vilsack and Navy Secretary Ray Mabus signed a Memorandum of Understanding (MOU) to encourage development of advanced biofuels to be used in the Great Green Fleet that will demo in 2012. USDA has also signed a Memorandum of Understanding with the Federal Aviation Administration (FAA) to help the commercial airline industry utilize biofuels as jet fuel. USDA has also invested significantly in research projects to advance the aviation biofuels industry.

The roundtable discussion is being held this afternoon at 12:45 central at Boeing Corporate Offices in Chicago.

The 2012 National Ethanol Conference, coming up February 22-24 in Orlando, is a must-attend for anyone in the ethanol industry.

Among the highlights of the conference will be opening general session keynoter Dr. James Canton, futurist and CEO of the Institute for Global Futures. For over 30 years, Canton has been insightfully predicting the key trends that have shaped our world and he will discuss the importance of engaging consumers to grow demand and improve the biofuels industry image.

The opening day luncheon address will feature presidential advisors Karl Rove and Robert Gibbs who will provide their “Insider Perspectives on Election 2012 – The Presidency and Congress.” Rove was one of President George W. Bush’s closest confidants and advisors, and Robert Gibbs has been a longtime advisor to President Obama.

With ethanol exports booming, speakers including former U.S. trade ambassador Mickey Kantor will address the trade opportunities and challenges facing U.S. producers as they seek to expand international markets.

Early registration and convention hotel rates both expire soon. Registration fees for the NEC increase by $100 after January 26. The room block at the Gaylord Palms Resort & Convention Center also expires on January 26.

Cellulosic biomass company Beta Renewables has become the latest member of the Advanced Ethanol Council (AEC), an organization that promotes advanced ethanol fuels and technologies.

Beta Renewables is a unique $350 million joint venture formed from the Chemtex division of Gruppo Mossi & Ghisolfi and TPG and is dedicated to making cellulosic biomass practical and cost-effective for the production of advanced biofuels and biochemicals.

“There are obvious synergies between Beta Renewables’ efforts to commercialize ligno-cellulosic bio-ethanol production and the Advanced Ethanol Council’s singular focus on developing forward-looking policies and open markets for the advanced ethanol sector,” said Guido Ghisolfi, President and CEO of Beta Renewables. “The Advanced Ethanol Council has put itself at the center of the discussion about promoting both advanced ethanol and advanced biofuels as a whole, and we see our membership with the Council as a critical part of our efforts to further develop Chemtex’s PROESA technology and related business platforms in the United States.”

Beta Renewables has invested over $200 million in the development of its PROESA™ process. The company is currently building the world’s largest cellulosic ethanol facility in Crescentino, Italy, which is expected to be in commercial production in mid-2012. The company has signed a number of PROESA™ technology licensing agreements with U.S. companies and is in the process of bringing its unique processing technology to the U.S. marketplace.

Last July, the government announced plans to raise corporate average fuel economy (CAFE) standards to 54.5 MPG by 2025. The automotive industry responded saying the MPG number was an attainable goal by utilizing high-efficiency internal combustion engines that deliver lower CO₂ emissions. However, one hurdle to address is that these high-efficiency engines need higher-octane fuel to realize their full fuel efficiency and performance potential.

Making higher octane gasoline at the refinery is an expensive process that is passed on to the consumer. So, can a cheaper and more environmentally-friendly source of octane be found in ethanol?

Yes, according to the fuel testing results just released. The fuel research was conducted by AVL, a global industry leader for the development of powertrain systems with internal combustion engines, instrumentation and test systems. The fuel testing study was funded in part by ICM. The first phase of fuel testing began in January 2011 and ended in December 2011.

Identifying A New Way to Test Fuel

Recognizing ethanol’s full octane value required some practical thinking about how ethanol is added to fuel, and to show how ethanol performs in new direct-injection engines. The AVL tests incorporated multiple gasoline base fuels, various compression ratios and several automotive fuel systems to demonstrate ethanol’s performance.

One of the surprising results revealed in this testing was the additional benefits of ethanol’s favorable octane sensitivity. By plotting both ethanol’s chemical octane and sensitivity benefits along with the cooling effect, test results showed that ethanol offers twice the octane potential. The focus of testing was to evaluate the various fuel blends along a range of knock limit operation rather than just evaluating one set point as is done today.
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