Hawaii Releaes Energy Report Card

Hawaii is in a vulnerable position since nearly 77% of it's electricity and over 99% of it's transportation fuels come from petroleum, all of which has to be imported into the state. And because of the high cost of petroleum Hawaii pays some of the highest energy prices in the nation. So the state has more incentive than most to do something about their energy situation.

Hawaii recently released a report detailing their efforts and progress towards greater energy security. Here are some of the highlights.

Hawai‘i's primary energy consumption in 2006 was down 1.8 percent compared to 2005.

Petroleum use in the state declined 2.7 percent between 2005 and 2006.

Renewable energy production increased by 9.8 percent in 2006. This increase can be attributed to generation from municipal solid waste, hydroelectricity and wind.

Municipal solid waste energy and hydropower production increased by about 12 percent and 13 percent, respectively.

Wind power increased by a dramatic 1,123 percent due to the influx from the new facilities at Kaheawa Wind Power and Hawai‘i Renewable Development.

Although they still have a long way to go, they have made some substantial progress for one years period of time. The full report is especially interesting since it goes into detail about the states present and future efforts including projects for both ethanol and biodiesel.

Full Press Release
Full Report (PDF)

Broward's First Ethanol Shipment Arrives At Port Everglades

As I posted a few days back Florida, just recently changed their fuel rules to allow for more ethanol blending in the state. Well, I noticed an article today that talks about the first shipment of ethanol, 2.52 million gallons coming into Florida through the Port Everglades on the same day the new fuel rules were adopted. Looks like Florida is moved ahead at full speed to get ethanol into their fuel supply.

On the heels of Congressional approval and President George W. Bush signing into legislation the Energy Independence and Security Act of 2007, Broward County’s Port Everglades received its first shipment of ethanol fuel today.

The ethanol shipment of 2.52 million gallons will go to multiple petroleum terminals at Port Everglades. Several terminal operators are preparing for the future distribution of alternative fuels by constructing new tanks or converting existing tanks to handle ethanol and other “green” fuels.

Full Press Release

Ethanol and the Gulf of Mexico Dead Zone

I have seen several articles talking about the Dead Zone in the Gulf of Mexico and how ethanol production is going to make it worse. One article plainly stated in it's headline, As ethanol demand grows, so does 'Dead Zone' in Gulf of Mexico.

Now I will be the first to admit that I am no expert on what causes the Dead Zone in the Gulf of Mexico. But if ethanol production, and more specifically the growing of corn is to blame then there should a statistical correlation between the size of the yearly corn crop and the size of the Dead Zone. So I decided to pull together the numbers and see if a trend could be seen.

In the first column are numbers for the yearly size of the Gulf of Mexico Dead Zone. I pulled these together from news articles. If anyone knows of another site where the numbers can be found please let me know.

In the second column is the number of acres of corn planted in each year.

2007 - 7900 square miles      93,616,000 acres of corn planted
2006 - 6662 square miles      78,327,000 acres of corn planted
2005 - 4564 square miles      81,779,000 acres of corn planted
2004 - 5800 square miles      80,929,000 acres of corn planted
2003 - 3220 square miles      78,736,000 acres of corn planted
2002 - 8500 square miles      79,054,000 acres of corn planted
2001 - 8006 square miles      75,752,000 acres of corn planted

From looking at the numbers there doesn't seem to be any direct correlation. The two largest years for corn production (2007 and 2005) didn't result in the largest yearly dead zone. And the smallest corn crop (2001) corresponded to the second largest yearly dead zone. Clearly other factors besides corn production are involved.

From reading around from various sources I have found that the dead zone is caused in part by fertilizer use. And since corn production requires large amounts of fertilizer, it stands to reason that corn production has an effect on the size of the Dead Zone. But it isn't the only factor that contributes. Soil erosion and sewage spilled into waterways also has an effect. As does weather conditions.

But if you read the article I posted above no other possible cause is explored other than corn production for the ethanol industry. Clearly the numbers do not support such a claim.

Sources:

December 2007 Crop Summary
2003 Crop Production Summary
2006 Crop Production Summary
'Dead zone' in Gulf of Mexico among top 3 ever mapped
Gulf dead zone larger than expected
Gulf Dead Zone Likely to Be Smaller
Record Size Dead Zone Forecast in Gulf of Mexico
Shrimp Industry Finds Life in Gulf Coast 'Dead Zone'

Louisiana Oil and Gas Association: Corn ethanol is more about politics than price

Ever wonder exactly what the oil industry thinks of ethanol? Well, this article written by the president of the Louisiana Oil and Gas Association pretty well shows just how they feel about it.

Today we are faced with record high oil prices, soaring gasoline prices, the value of the dollar in decline and an economy teetering on recession; all of this is being caused by a rapid growth in oil demand, tight oil supplies and limited surplus oil production capacity.

With that in mind, you would think the Energy Bill passed by Congress three weeks ago would provide incentives encouraging domestic exploration, such as opening federal lands and waters that are restricted for oil and gas exploration. The United States is the only country that restricts development of its natural resources. Not this Energy Bill. Instead of drilling our way to energy security, Congress proposes to "grow" our way to energy security with corn ethanol, or should I say corn politics.

Full Article

And of course just like all statements issued by the oil industry in regards to biofuels, there are several inaccuracies (misinformation?).

American farmers increase use of biodiesel.

While most farmers are dabbling in a 2% blend of biodiesel, at least two farmers from Iowa have taken biodiesel usage to a new level. David Oberbroeckling and Roger Halliday use anywhere from a 20% to 100% blend on their farms.

In September of 2001, Oberbroeckling, who farms in Davenport, IA, started using a 20% blend after several months of requesting that his distributor provide soy diesel (commonly referred to as B20). He wanted the advantages that straight petroleum diesel simply can't offer.


For the rest of the article. http://cornandsoybeandigest.com/mag/soybean_big_biodiesel/index.html

There are also many great links to articles on this page from the Corn and Soybean Digest.

Glycerol improves feed efficiency in cattle

A 150-day study conducted by University of Missiouri-Columbia (UM) Professor Monty Kerley has found that when glycerol is added as 10% of feedlot cattles' rations, it improves the animal's feed-to-weight-gain, or feed efficiency ratio.

Glycerol, a co-product of biodiesel production, has been fed to cattle for years in Europe, Kerley noted.

Because biodiesel production has increased so much over the last few years there is an ample supply of glycerol available. The cost of glycerol has dropped as a result of this increased supply, so this could allow cattle farmers another option to lower costs.

Full Article

VeraSun to Acquire US BioEnergy

NEW YORK (AP) -- VeraSun Energy Corp.'s deal Thursday to acquire US BioEnergy Corp. is likely to be the first step toward consolidation in an industry that has seen its profits squeezed by high corn costs and low ethanol prices.

VeraSun's all-stock acquisition of its smaller competitor will boost its annual production capacity to 1.6 billion gallons by the end of 2008, potentially making it the largest U.S. ethanol producer. Poet LLC is currently the top producer, with 1.1 billion gallons of capacity, according to the Renewable Fuels Association.

Complete story: http://biz.yahoo.com/ap/071129/verasun_us_bioenergy.html?.v=3

Boeing imagines future network of decentralised biofuel producers

Increasing air traffic is the ultimate symbol of the world's rapid globalisation. Large jets take thousands of people to the other side of the planet in a matter of hours, fill up their tanks at the airport and carry on to their next destination. Non-stop.
One factor that has made this revolution possible is the availability of inexpensive, standardized jet-fuel, made from petroleum. The fuel is the same in Singapore and Boston, in Rio de Janeiro and in Brussels.

However, if it is up to Boeing, this will soon change. The aiframer imagines a world in which there are thousands of independent biofuel producers each making their own fuel from the most efficient local feedstocks and to a common global standard. Boeing's biofuel strategy has greatly expanded and is moving in this direction as the company prepares to select a specific biofuel source for two demonstration flights scheduled next year.

A good article on not only Boeing's vision of the role biofuels will play in the aviation industries future but also on the various efforts going on around the world to engineer biofuels for aviation.

Full Article

Double bonus possible to dairies feeding distillers grains

Texas dairy cattle may soon be putting out more milk for consumers and bringing more dollars to their producers, fueled by an ethanol by-product, according to a Texas Cooperative Extension specialist.

Distillers grain, or the substance left after ethanol production, will increase in availability as ethanol plants begin opening in Texas in 2008, said Dr. Ellen Jordan, Extension dairy specialist in Dallas.

"As we look at the current research, we see there is a potential by incorporating distillers grains into our rations to increase milk yield, as well as feed efficiency, in the dairy cows," Jordan said.

The story goes on to say that only about 45% of diaries across the country feed with distillers grains, so there is large segment that could benefit from the lower costs and improved milk production distillers grains provide. Good to see research like this taking place so that more producers take advantage of this unique opportunity that ethanol production provides.

Full Article

NBB: Biodiesel Production Nowhere Near Capacity Yet

The biodiesel industry is currently producing at less than one quarter capacity, due mostly to underutilization by petroleum blenders and continuing high vegetable oil and fat prices. As of September 2007, the National Biodiesel Board reports that America's biodiesel industry had 1.85 billion gallons per year capacity. However, according to Amber Thurlo Pearson, NBB communications specialist, this capacity is not being utilized by the petroleum industry.

Full Article

The story goes on to point out that the newly enacted Renewable Fuels Standard (RFS) requires 500 million gallons of biodiesel to be used in 2009. It seems pretty obvious that oil companies won't blend ethanol and biodiesel unless forced to.

Ethanol's Water Use

So much has been made of the amount of water being used in the production of ethanol. As I am sure everyone is aware, water is a precious resource and management and conservation efforts are needed to ensure the continued supply of fresh usable water in this nation. But since ethanol is competing with gasoline as a transportation fuel, it's water use should be put in perspective with the water use of the petroleum industry.

The estimates for the amount of water used in the conversion of corn into ethanol is 3 to 4 gallons of water for each gallon of ethanol produced.

Now let's see how this compares to the petroleum industry. It is estimated that for every barrel of oil refined that 65 to 90 gallons of water are used resulting in 20 to 40 gallons of water being discharged. That means that 45 to 50 gallons of water are consumed in the production of each barrel of petroleum. There are 42 gallons of crude oil per barrel, so that amounts to 1.1 to 1.2 gallons of water for every gallon of crude oil processed.

So at the present time ethanol uses more water per gallon produced than gasoline production does. But as the easy to process oil is becoming more limited, oil production is beginning to shift to oil that is harder to process. A great example is the tar sands of Canada.

The tar sands of Canada, the oil shale here in our country and various other similar deposits around the world are most likely going to be the long term future of the oil industry. And to process tar sands into fuel, 2 to 4.5 barrels of water are required to produce one barrel of fuel. In other words 2 to 4.5 gallons of water are required for every gallon of fuel produced.

So at the moment gasoline production is not as water intensive as is ethanol production. But as more and more production is shifted to tar sands and oil shale deposits, gasoline production will become more water intensive than ethanol production.

To a certain extent this explains why the amount of articles criticizing ethanol has gone up so much over the last few months. Not only is the water intensity of gasoline production going to increase in the future, so is the pollution emitted during the production process. And the environmental damage done through the extraction of these deposits is much greater than traditional oil drilling techniques. As time passes ethanol will look better and better in comparison to gasoline. So if the oil industry is going to be able to kill ethanol off it has to be now.

Sources:

Water Usage for Current and Future Ethanol Production
The Harm the Tar Sands Will Do

Gas stations can offer different ethanol blends under pilot project

The Kansas Department of Agriculture is launching a pilot project that will allow customers to purchase gasoline containing different percentages of ethanol.

Fueling stations currently sell gas blended with either 10 percent or 85 percent ethanol, according to Kansas Secretary of Agriculture Adrian Polansky. The pilot project will allow stations to offer pumps that dispense ethanol fuel blends not currently offered, like 20 or 30 percent ethanol.

The purpose, Polansky says in a news release, is "to allow consumers to decide for themselves which blend is best for them based on price and performance."

Full Article

Considering the study I posted a while back that showed that different cars performed best on different levels of ethanol, this is a great development in that it allows each person to find the blend that works best in their cars. Now if only my state would set up a program like this.

Never Heard This One Before

I guess there really is no price increase that someone won't try to blame on ethanol.

Another variable that is increasing demand on propane and driving costs skyward is the rapidly increasing need for corn-based ethanol. According to a Seattle Times article, farmers in the Midwest are spending billions to have tons of corn sent to refineries to make the fuel. The corn must be dried as one step in the production of ethanol. The drying process requires large amounts of propane. In addition, machines used to harvest, plant and plow fields use large amounts of diesel, driving prices even higher and hurting propane inventories.

Now ethanol is to blame for high propane costs. I will try to do some checking to find out how many plants use propane for energy instead of natural gas which is methane.

I truly do not understand that last part about how the diesel needed for planting and harvesting is driving propane prices up. The amount of diesel used for off road uses including farming is minuscule compared to the amount of diesel used for transportation.

Full Article

Update: - From doing some research I found out that 65% of propane comes from natural gas production and 35% comes from refining petroleum. So the price of propane is linked to both the cost of petroleum and the cost of natural gas. So any process that uses either natural gas or petroleum products could be seen as driving up the price of propane. And given the fact that most ethanol plants use natural gas for process energy and that the production of corn requires diesel, I guess you could say that ethanol production is driving up propane costs. But it is in my opinion a really thin argument to single out one industries use of natural gas and diesel and place the blame on it while ignoring all the other uses of each product.

Of course it should be noted that since ethanol is being used in the fuel supply, it lowers the overall need for fuel from petroleum. And since 2006 ethanol has been used to replace MTBE in gasoline. MTBE is made by reacting methanol with isobutylene. Methanol is primarily made from natural gas and isobutylene is a petroleum product. So by replacing MTBE it is lowering the demand for both natural gas and petroleum.

Florida rules could open vast ethanol market

Florida published new proposed motor fuel rules on Friday that could lead to wider ethanol blending in the country's third largest gasoline market.

Limited ethanol blending had already been occurring in Florida, but the issuing of broad rules on gasoline containing ethanol is a step in creating the regulatory framework needed in opening up the market to the burgeoning U.S. ethanol industry.

I have posted a couple of articles in the past that pointed to the fact that Florida was in the process of making rules changes that would allow for more ethanol blending in the states fuel supply. Several other southern states are also in the process of doing the same thing.

Full Article

Fighting the Absurd Accusations

“Food Riots in Mexico,” “Crimes Against Humanity,” “Biofuel Bust,” “Dead Zone in the Gulf of Mexico.” The ethanol industry has heard it all over the last six months. It appears some in the media have treated us like a piñata, swinging wildly while blindfolded. It has bordered on the absurd. In some corporate circles ethanol has become as convenient an excuse as “the dog ate my homework” is in grade school. Please, enough is enough.

As many of you are well aware, the industry has formed a coalition to fight back against these accusations, which stem from what we believe is a well-orchestrated, well-funded campaign by ethanol’s detractors. While our critics may have deep pockets, our industry is united and the facts are on our side. The headlines may cause many of us angst, but there is positive news: consumers appear to be tuning out the anti-ethanol drumbeat. The latest Ethanol Promotion and Information Council consumer research found that nearly one-third of respondents indicated that their attitude toward ethanol has become more favorable over the last six months. Sixty-two percent reported their opinions stayed the same.

In baseball vernacular, our opponents have swung for the fences and grounded out to shortstop.

Full Article

With five plants in the works, Fla. joins ethanol bandwagon

With changes in Florida's fuel rules underway to make expanded use of ethanol in the states fuel supply, several plants are in the planning stages to supply what is the nations third largest fuel market.

The coming year is expected to be a groundbreaking one for fuel ethanol production in Florida - literally.

If all goes well, three proposed ethanol plants could be under construction in 2008, with production of the renewable fuel beginning as early as 2009. They will join a growing cohort of ethanol plants nationwide: 135 in operation, nine being expanded and 65 being built, according to the Renewable Fuels Association.

Florida does not yet produce fuel ethanol, but at least five plants are on the drawing board. Ethanol is derived almost exclusively from corn in the United States, and it's blended with gasoline to provide fuel for motor vehicles.

Four of Florida's proposed plants would use plant waste such as citrus peels to produce ethanol.

Full Article

Biodiesel’s True Calling

This months issue of Biodiesel Magazine has a very good article on the use of biodiesel in home heating. It goes through some of the advantages and issues facing the industry and also talks about the market potential.

Armed with a list of advantages fuel oil has over its competition, this energy with an aging reputation is being repackaged for a new generation of consumers. Despite information from EIA, which states most older U.S. homes outside New England have replaced oil burners with propane or natural gas, and that oil no longer has an appreciable share of the new construction market, heating oil advocacy groups and fuel distributors bill heating oil, especially when blended with biodiesel, as clean, safe and affordable. Moreover, new systems technologies with greater utility are emerging, and may help heating oil and biodiesel gain footing as an attractive source for residential heating, air conditioning and electricity.

Full Article

Report: Combined Heat and Power can Significantly Alter Energy Consumption and Carbon Emissions for Corn Ethanol Production

Green Car Congress has done an excellent writeup on a report released by the EPA on dry mill ethanol plants that incorporate Combined Heat and Power (CHP) into their production process. CHP is also known as cogeneration and is the production of electricity as part of the production process. It results in a substantial energy savings.

The adoption of combined heat and power (CHP) in dry mill ethanol plants can reduce total energy use by up to almost 55% over state-of-the-art dry mill ethanol plants that purchase central station power and can result in negative net CO2 emissions depending upon the fuel type used and CHP configuration, according to an updated report by the US Environmental Protection Agency’s (EPA) CHP Partnership.

Full Green Car Congress Writeup

EPA Report

I have been researching ethanol plants using CHP for a while now and here is a list of the plants that employ it.

Adkins Energy LLC - Lena, Illinois
White Energy (Formerly U.S. Energy Partners LLC) - Russell, Kansas
East Kansas Agri-Energy LLC - Garnett, Kansas
Sterling Ethanol - Sterling, Colorado
Front Range Energy - Windsor, Colorado
Yuma Ethanol - Yuma, Colorado
Central Illinois Energy - Canton, Illinois
Central Minnesota Ethanol - Little Falls, Minnesota
Poet - Ashton, Iowa
Poet - Macon, Missouri
Poet - Laddonia, Missouri

Critics Mislead on Ethanol's Water Use

As part of their ongoing efforts to convince Nebraskans that increased corn and ethanol production is detrimental to the state, critics are focusing more and more on the emotional issue of water, says Jon Holzfaster, chairman of the Nebraska Corn Board.

More specifically, the criticism revolves around the amount of water used to produce corn and ethanol. For example, anti-ethanol groups regularly point out that it takes three gallons of water to produce one gallon of ethanol.

"What the critics often fail to do, however, is put that water use in its proper perspective," says Holzfaster, a farmer from Paxton. "They fail to mention that it takes 94 gallons of water to process crude oil into one gallon of gasoline. To produce just one average-sized Sunday newspaper takes 150 gallons of water. To irrigate an acre of a golf course requires more than 680,000 gallons of water each year.

In comparison to the water use of other popular industries, it appears that ethanol's water use has been way overhyped.

Full Article

Bush signs energy bill

The President signed into law today a new energy bill that calls for increased use of biofuels and higher mileage requirements for new cars.

The new legislation calls for 36 billion gallons of biofuels to be used in the nations fuel supply by the year 2022. Also part of the legislation was the requirement that vehicles get 35 miles per gallon by 2020.

Full Article

Big Oils Latest Attempt at Greenwashing Falls Apart

An article in the news today brought to light the oil industries attempts at greenwashing their public image through investments in biofuels. Earlier Chevron made an investment in a Galveston, Texas area biodiesel plant. And Chevron and the oil industry widely touted that effort in their PR campaigns. Such as this snippet from the American Petroleum Institue (API).

Chevron has invested in Galveston Bay Biodiesel LP (GBB), a Texas-based company that is building one of the first large-scale biodiesel plants in the United States, which will double the size of the amount of biodiesel being produced in the United States. The biodiesel will be made from soybeans and other renewable feedstocks.

Now aside from the fact that Chevron only bought a 22 percent stake in the company, neither it's current production of 20 million gallons per year or it's proposed future production of 100 million gallons per year would double the existing biodiesel production in this country. According to the National Biodiesel Board current production capacity is at 1.85 billion gallons per year.

Now Chevron is being sued for breeching it's contract in regards to investments it intended to make in the plant.

Chevron Corp. has refused to put more money into a biodiesel plant in Galveston, breaching its contract and forcing the plant's owners to "dramatically" scale back expansion plans, a lawsuit alleges.

And the oil company "knowingly" misrepresented its intention to boost its investment in the plant, which misled investors who had counted on the oil company's involvement to add credibility and stability to the project, says the suit filed this week in Galveston County court.

Of course Chevron denies the claims but I think the article put it best.

The dispute exposes rifts that had been developing quietly over months between Chevron and the plant's operators, and may turn a relatively small investment in alternative fuels by one of the world's biggest oil companies into a public relations and legal headache.

Full Article

Xethanol Announces Grant Application for Citrus Waste to Ethanol Production

Xethanol Corporation (AMEX: XNL), a renewable energy company, today announced that its subsidiary Southeast Biofuels LLC has filed a grant application with the Florida Department of Agriculture and Consumer Services to expand the company’s work on converting waste to energy, using citrus waste as the raw material and converting it into ethanol. Only about 50 percent of a citrus fruit is used to produce juice and related products. Currently, most citrus waste is turned into low-value animal feed.

Xethanol intends to build a demonstration plant for converting citrus peel waste into ethanol. The company is negotiating an agreement to locate the plant at an existing citrus facility in Florida owned by one of the largest citrus processors in the state. The planned cost for the two-year build-out of the demonstration plant is approximately $6,000,000, and Southeast Biofuels is seeking a $500,000 grant.

Full Press Release

If money talks in Washington, industry only pays for a whisper

With all the talk about the political power of agribusiness, and in particular Archer Daniels Midland (ADM), it is nice to see an article that compares the political contributions of the biofuels industry with that of the oil industry.

Biofuel political action committees and industry leaders haven't showered money on key members in Congress in 2007, and they've given even less to the field of presidential candidates, a Des Moines Register analysis of federal campaign finance data shows.

Eleven PACs promote biofuel companies, associations or major corn and soybean grower groups, but only about half made donations to congressional candidates in the first 10 months of this year, totaling close to $20,000. Adding the PAC for Archer Daniels Midland - which is a large biofuels producer, although fuel is not its main business - adds another $18,000.

In contrast, the oil and gas industry, which has six dozen PACs, donated $2 million in 2007, according to federal records in mid-October.

The report goes into great detail about the political lobbying efforts of both groups.

Full Report

Gasoline and Ethanol Headed In Different Directions

The process of making ethanol has come a long way in the last few years. Many improvements have been made. The amount of ethanol derived from a bushel of corn has gone from an average 2.5 gallons per bushel a few years to the current 2.8 gallons per bushel. The amount of water and energy required has also gone down.

Farming practices have also gotten better. The amount of corn produced per acre has gone up and the amount of energy required in planting and harvesting has gone down.

Most of the energy used in ethanol plants comes from natural gas and electricity. And as I posted earlier many companies are looking to innovative ways to cut their fossil fuel usage and energy costs.

Most of the energy used in farming and in the transport of ethanol comes from petroleum in the form of diesel fuel. As more farmers, railroads, and truckers use biodiesel in their equipment the amount of petroleum used will go down.

The process will continue to improve in the future as technology in both farming and the ethanol industry matures. And that is just considering conventional forms of ethanol production, not any future forms such as cellulosic ethanol.

Gasoline on the other hand is heading in the opposite direction. As the easy to get to deposits of oil are used up, production is shifting to oil reserves that require more energy to extract and refine. Two good examples of this are oil sands of Canada and the oil drilling that is taking place in the deep waters of the Gulf of Mexico.

So when you hear the talk about the energy balance of ethanol, just remember that no matter where it stands today, it will be better tomorrow. And that no matter what the energy balance of gasoline is today, it will be worse tomorrow.

NOT JUST FOR CARS: BIOFUEL HEATS HOMES

I saw this article today in the news and thought it was a good reminder that biodiesel isn't used just for as a transportation fuel but also for home heating.

More and more cars on the road are sporting “biodiesel” bumper stickers, touting the “green” sensibilities of their owners. But these days even some houses qualify for that eco-friendly label.

That’s because biodiesel — a mixture of diesel and fuel made of vegetable material such as soy or grass — is gaining cachet not only among homeowners who still use their old-style oil furnaces but also among some who choose the option when shopping for a new heating system.

Full Article

For a list of companies offering home heating oil blended with biodiesel (also know as Bioheat).

Bioheat Dealers

Safe Handling Opens Maine’s First Ethanol Terminal

Safe Handling Inc. announces the opening of a new biofuels terminal, which includes the first ethanol transloading facility in the state. With direct rail access to the Midwest farm belt, this terminal gives Maine’s fuel wholesalers rapid and economic access to domestically grown biofuels.

Maine’s primary importer of biodiesel, Safe Handling, has now opened the state’s first ethanol terminal. This rail-to-truck transloading terminal is the first step towards making ethanol-blended gasoline available at retail stations.

The new facility was constructed in response to strong interest from biofuel producers, marketers and wholesalers who needed a cost-effective way of importing product into the state. The terminal is located in Auburn, Maine and offers uniquely efficient and direct rail service from biofuel producers located in the Midwest and Canada. The terminal has been equipped with state-of-the-art transloading equipment, spill containment, and fire suppression systems.

Safe Handling Press Release

Long Term Biodiesel Study Underway

The Decker Truck Line and the National Biodiesel Board along with other sponsors are conducting a two year long study of the performance of B20 (20% biodiesel blend) in over the road truck operation. The study, called the "Two Million Mile Haul" had reached the one year mark and has yielded some initial observations.

"Although we have data from only the first year of the study, we are pleased with the results to date," says Don Heck, coordinator of biotechnology and biofuels programs at Iowa Central Community College in Fort Dodge, Iowa. "Preliminary results are that B20 biodiesel performs similarly to 100 percent diesel. We found a slight decrease in overall fuel efficiency for the B20 group of trucks, but it was not statistically significant. In fact, the difference was several times smaller than the driver-to-driver variability in fuel efficiency within each group."

The study will also test engine durability with oil analysis being done and the engines being town down for inspection at the conclusion of the study.

"Oil test data shows no appreciable differences between the fuels. We expect that the B20 group of engines will show less wear than the control group," says Heck. At the conclusion of the study, engines from both the control group and B20 group will be torn down for a closer analysis of engine wear.

Trucking study examines biodiesel efficiency

The study also has a website.

Two Million Mile Haul

The Department of Labor Releases November Inflation Information

The Department of Labor released the November Consumer Price Index yesterday. Overall the Consumer Price Index rose 0.8 percent, the largest rise since September 2005.

What is interesting to note is that with all the hype about corn prices and how ethanol production is pushing food prices higher, the food index rose by 0.3 percent, the same amount as all items less food and energy.

The food index rose 0.3 percent in November. The indexes for food at home and for food away from home each increased 0.3 percent. The index for all items less food and energy advanced 0.3 percent in November

Of coarse it is only one month in time but it is interesting how confusing this issue can be since some items that rely on corn for their production went up and some went down. Such as cereals, beef and dairy products went up while meats, poultry, fish and eggs went down. Meanwhile energy, the one thing that effects everything we buy went up quite a bit.

The index for energy advanced 5.7 percent and accounted for nearly 70 percent of the overall CPI increase in November. The index for petroleum-based energy rose 9.5 percent and the index for energy services, 0.7 percent.

Consumer Price Index Summary

EERC Demonstrates Hydrogen Production at Ethanol Facilities

The Energy & Environmental Research Center (EERC) at the University of North Dakota is leading a project to demonstrate the production of hydrogen at existing and future ethanol facilities in a unique, economical way, providing a near-term path toward a hydrogen economy. The hydrogen produced could be used on-site in fuel cells to provide additional power for the plant or as fuel for hydrogen vehicles.

Although this isn't a new item, it is interesting in that if it is perfected and commercialized it would lower the cost of ethanol production and improve it's energy balance.

EERC Demonstrates Hydrogen Production at Ethanol Facilities

U.S. sees renewable energy use doubling by 2030

The Energy Information Administration (EIA) released it's forecasts for energy usage through 2030. It predicts a large increase in renewable energy, with wind and biomas making the largest gains between now and 2030.

The United States will still rely on oil, natural gas and coal for its main energy supplies through 2030, but ethanol and other renewable energy sources will double during the period, the government's top energy forecasting agency said on Wednesday.

The bad news is that since renewables make such a small percentage of our overall energy production at the present time that even with doubling the the amount of renewable energy produced by 2030, renewables will still only account for a small percentage.

But because renewables represent such a tiny part of energy production, doubling their use will take only a small bite out of demand for fossil fuels. Petroleum, coal and natural gas will still meet 83 percent of total U.S. primary energy supply requirements in 2030, down only slightly from 85 percent in 2006.

There were some other interesting things to note in the report as well.

U.S. demand for petroleum, the main source for transportation fuels, is forecast to rise 0.8 percent a year, from 21 million barrels per day in 2008 to almost 25 million bpd in 2030.

This number doesn't include what effects raising the CAFE requirement will have on future demand, but when coupled with the EIA's projection on future refinery output it highlights a general trend.

U.S. oil refining capacity rises only 300,000 bpd by 2020 to 17.6 million bpd, then jumps to 18.6 million bpd in 2030.

Together these two projections show that the limited refinery production that is partly to blame for our high gasoline prices will continue well into the future.

U.S. sees renewable energy use doubling by 2030

Vertigro Releases Initial Results of Algae Test

The test was designed to test their algae growing equipment and showed some promising results.

The Vertigro Joint Venture has released initial test results from its high density bio mass (algae) field test bed plant located at its research and development facility in El Paso, Texas.

During a 90 day continual production test, algae was being harvested at an average of one gram (dry weight) per liter. This equates to algae bio mass production of 276 tons of algae per acre per year. Achieving the same biomass production rate with an algal species having 50% lipids (oil) content would therefore deliver approximately 33,000 gallons of algae oil per acre per year.

Pretty impressive results considering that the test was not optimized for yield or the best selection of algae species.

Glen Kertz and Dr. Aga Pinowska, who head the research and development program, commented, "This is a major milestone for us as we have demonstrated the robustness of the Bio Mass System with satisfactory production results from a system that has not yet been optimized for algae production, which will become part of the next phase of testing." They also noted, "We have learned how to produce a very large algal bio-mass under varying environmental and operating conditions in our continuous process photo bioreactors. We believe these initial results are amongst the best achieved to date, and we are confident we can now increase the productivity."

Initial Data From The Vertigro Field Test Bed Plant Reports Average Production Of 276 Tons Of Algae Bio Mass On A Per Acre/Per Year Basis

Ford Using Soy Based Seat Foam in 2008

Ford has developed a soy based seat foam that will be used on the 2008 Ford Mustang, F-150, Expedition and Lincoln Navigator and will be in the 2009 Ford Escape.

Now, Ford’s Plastics Research team has formulated the chemistry to replace a staggering 40 percent of the standard petroleum-based polyol used in seating materials with a soy-derived material. This breakthrough will make a significant impact on the environment while reducing dependency on imported petroleum.

According to the National Institute of Standards and Technology, soy-based products have only one-quarter of the level of total environmental impact of petroleum-based products. Most automakers today use 100 percent petroleum-based polyol foam. Each vehicle contains an average of 30 pounds of petroleum-based foam in its seat backs, seat cushions, armrests, instrument panels and headliners.

“As we continue to migrate this green technology across many vehicle platforms, we’re improving our environmental footprint by conserving limited resources and reducing carbon dioxide emissions,” said Debbie Mielewski, technical leader, Ford Plastics Research.

Ford is working closely with the United Soybean Board to bring soy foam to the automotive market. The company is using 2.2 million pounds of soy foam in the 2008 Mustang alone. Just based on that application, this green alternative is on track to deliver a carbon dioxide reduction of 605,000 pounds annually.

John Deere is also working with Ford to make soy based seating available in it's line of agricultural equipment.

FORD PIONEERS GREEN SEATING ALTERNATIVE, LICENSES SOY SEATING TO JOHN DEERE

Poultry Can Be Fed Higher Levels of Distillers Grains

Initial results from research done by Iowa State University suggest that high levels of distillers grains can be fed to layer hens without any loss of egg production.

Laying hens in the project were fed a diet with up to 69% corn DDGS. "In the past, only reports of feeding 15% to 20% corn DDGS have been available, but we showed we can feed as much as we want with no adverse effects on egg production or quality, as long as we have a nutritionally balanced diet," he says.

Being able to feed higher levels of distillers grains should lower the overall cost of production since distillers grains are more economical than corn.

Poultry Can Be Fed Higher Levels of Distillers Grains

Biobased Consumer Products

There are thousands of products besides transportation fuels that are made from petroleum. Petroleum products can be seen all around us. They are used to make plastics, cosmetics, synthetic rubbers, textiles, foams, lubricants, and many other things. And many of these products cause problems once released into the environment. Just think of all the motor oil that leaks from cars and enters the environment.

But there are products on the market and many more in development that are made from biological sources. These biobased products are better for the environment, less toxic for the user and help to reduce our need for oil.

The United Soybean Board has compiled a list of biobased products available to consumers.

Consumer Products

The National Corn Growers Association also maintains a site listing corn based products.

Corn Products

Shell plans algae farm for biofuel

I am always a little skeptical whenever I see an announcement that one of the oil companies is venturing into renewable fuels. This could be interesting though considering the sheer amount of funding that an oil company could put forward to advancing algae biodiesel technology.

A day after breaking ground in Texas on the nation's biggest oil refinery, Royal Dutch Shell PLC announced it is building a fuel refinery of a very different type: an algae farm and laboratory in Hawaii that will produce vegetable oil that can be converted to biofuel.

The project on the Kona coast of Hawaii will be a demonstration and test facility, Shell's U.S. president said. But if it works as planned, Shell and Hawaiian partner HR Biopetroleum Inc. could build a full-scale production plant elsewhere that could produce commercially available biodiesel based on algae oil in the near future.

Shell plans algae farm for biofuel

E85 Prices

I have been getting quite a bit of traffic to the posting I made on the weekly national E85 price, so I thought I would follow up with additional resources for finding E85 prices.

To find the national average price for E85 as well as regular unleaded and diesel, the AAA maintains the Daily Fuel Gauge Report.

E85Prices.com allows users to post prices and is a great resource when looking for pricing in your area.

The American Lung Association of the Upper Midwest also maintains a site that allows user contributed prices.

For information on where to buy E85 and biodiesel see the post I made earlier.

Where to Buy E85 and Biodiesel

New Study Addresses Food vs Fuel Debate

A new study by Informa Economics looked through over twenty years of data to establish the true effects of the increases in ethanol production and the resultant increased demand for corn on the consumer price of food items.

The report finds that rising food costs are largely due to rising energy prices and increased global demand.

The Informa report identifies the so-called “marketing bill”—the portion of final food costs that excludes grains or other raw materials—as a key driver of the consumer price index (CPI) for food, largely due to rising energy and transportation costs. Another significant factor in consumers’ food bills is surging global demand for commodities.

The report concludes that there is not a solid cause and effect relationship between corn prices and rising food prices.

“While there have been a number of stories in the media over the last year indicating that consumer food prices are being driven higher by an ethanol-induced increase in corn prices, there is little evidence of such a simplistic cause-and-effect linkage. … While an increase in corn prices will affect certain industries – for example, causing livestock and poultry feeding margins to be lower than they otherwise would have been – the statistical evidence does not support a conclusion that there is a strict ‘food-versus-fuel’ tradeoff that is automatically
driving consumer food prices higher.”

Informa Press Release
Complete Study

And these findings are consistent with another study released in June 2007 by LECG.

LECG Study

Feedstock Frenzy

One of the best articles I have read exploring the ongoing development of algae and jatropha as biodiesel feedstocks.

Feedstock Frenzy

Case IH Expands B100 Biodiesel Use In Farm Equipment

Case IH has extended its recommendations on use of biofuels to include B100 - or pure biodiesel - on even more of its farm equipment models.

Farmers now can use B100 on nearly all Case IH medium- to high-horsepower tractors, combines, windrowers, and most self-propelled sprayers and cotton pickers -- so long as proper protocols are followed for engine operation and maintenance.

All Case IH machines leave the factory with a blend of biodiesel as well.

Read the full press release.

ASTM Subcommittee Passes New Specification for 20 Percent Biodiesel

After nearly six years of collaboration, ASTM has taken a leap forward in the process of creating a new specification that will cover blends of six-to-20 percent biodiesel (B6 – B20). The biodiesel blend specification passed out of ASTM International’s D02 Subcommittee E at the semi-annual ASTM meetings held in Phoenix this week and will clear the way for greater automaker approval of B20.

National Biodiesel Board: Press Release

Study Shows Benefits of Mid-level Ethanol Blends

A study conducted by the University of North Dakota Energy & Environmental Research Center (EERC) and the Minnesota Center for Automotive Research (MnCAR) shows that mid-level ethanol blends such as E20 and E30 may be the optimal for todays new cars.

Although this test is limited and only conducted on four cars, all 2007 models, it shows that conventional wisdom that ethanol should get less mileage based on the fact that it has a lower energy content than gasoline is incorrect. Three of the four test cars showed better fuel mileage on ethanol blends than on regular gasoline. And all four cars outperformed the mileage that would be predicted based solely on energy content.

Press Release
Full Study (PDF)

Biodiesel and Cold Weather

It is a well known fact the gel point of biodiesel is higher than that of petroleum diesel. That would tend to suggest that it is less suitable for cold weather use. But according to the National Biodiesel Board, as long as precautions are taken such as using high quality fuel and following proper blending procedures, biodiesel blends are reliable even in sub-zero temperatures.

To further illustrate that point the National Biodiesel Board has compiled a list of fleets around the country that are using biodiesel in cold weather environments.

National Biodiesel Board - Cool Customers

They also have written a feature article on Cranmore Mountain Resort, which is using B20 (a blend of 20% biodiesel and 80% petroleum diesel) in their ski slope grooming equipment.

Biodiesel Stands Up to Sub-Zero Temperatures

Ethanol byproducts pelletized

Researchers at the Agricultural Research Service (ARS) are experimenting with forming Distillers Dried Grains (DDGs) into pellets allowing them to be fed to in a larger variety of conditions and to more livestock species.

Ethanol byproducts pelletized

Should the Import Tariff on Ethanol Be Dropped?

There have been many calls for the import tariff on ethanol to be dropped. Many people think that it is meant to protect domestic ethanol production from cheaper Brazilian ethanol.

The government subsidizes ethanol at a rate of 51 cents per gallon. The subsidy is paid to the company that blends the ethanol with gasoline and makes no distinction as to where the ethanol comes from.

The ethanol subsidy was meant to promote the domestic production of ethanol by giving blenders, normally the oil companies, incentive to use it. And as I mentioned the subsidy makes no distinction as to where the ethanol came from, so foreign ethanol gets subsidized at the same rate.

The ethanol tariff is 54 cents per gallon and is simply meant to offset the subsidy. There is a bit of difference between the two numbers because a few years back the subsidy was lowered from a rate of 54 cents per gallon to the current 51 cents per gallon.

So what would happen if the import tariff were dropped?

For an idea of what would happen if the tariff were dropped just look at biodiesel which has a subsidy but no matching import tariff. In the case of biodiesel the subsidy is $1.00 per gallon for every gallon of biodiesel that is blended with petroleum diesel. This subsidy is also paid to the blender and companies have been sending tankers here filled with foreign produced biodiesel, blending in 1% petroleum diesel, collecting the subsidy, then shipping the biodiesel off to other countries to be sold. It a tactic that is commonly known as "splash and dash".

Worse still for U.S. taxpayers, the law also inadvertently allows foreign companies to claim the tax credit after simply blending a drop of U.S. mineral diesel into their mixture. Such 'blended' foreign biodiesel is in most cases re-exported to the EU ("splash and dash"), further harming European producers. Congressional moves to repeal the export subsidy and "splash and dash" loopholes failed in 2007.

"What we are witnessing here is U.S. taxpayers effectively subsidizing European motorists to the tune of around $300 million last year. And that figure is set to be even higher this year - all while Americans themselves are suffering at the pump. We appreciate Congressional efforts to address the problem last year but regret that, in the end, the proposed remedies didn't stay in the Energy Bill eventually signed by President Bush. As I work with Members of Congress in the coming months, I will continue raising this issue and push for a resolution; hopefully in time to stave off an expected complaint from European industry."

Full Article

Robust Livestock Sector Important for Ethanol Industry

The ethanol industry and livestock production can not only coexist but can benefit each other.

“Many communities in Nebraska want an ethanol plant for the jobs and economic vitality it brings, but livestock producers, particularly cattle producers, see the plant as another source for feed,” said Randy Klein, director of market development with the Nebraska Corn Board.

In fact, Klein said, distillers grains are a versatile feed ingredient that can lower the cost of production for cattle producers. “Distillers grains have outstanding nutritional properties for cattle and can be mixed into normal rations, combined with lower-cost forages to make a great feed or even simply dumped onto cornstalk stubble for foraging cattle,” he said. “In each case, cattle performance improves and costs go down.”

Robust Livestock Sector Important for Ethanol Industry

September 2007 Ethanol Production Up

The Renewable Fuels Association reported that September 2007 ethanol production continues to grow averaging 441,000 barrels per day. Demand fell to 422,000 barrels per day.

Ethanol production continued to grow in September, averaging 441,000 barrels per day (b/d) according to the Energy Information Administration.

Ethanol demand, despite the economic advantage ethanol had over gasoline, fell to 422,000 b/d representing a monthly decrease from August of 54.2 million gallons.

It is no surprise that production is up since many new plant constructions and expansions are going on, but for demand to fall is somewhat puzzling given the fact that the wholesale price of ethanol is lower than the wholesale price of gasoline.

“Despite the economic advantage ethanol blending offered refiners, and most importantly consumers, the actual blending of ethanol decreased.

"With ethanol-blended fuels offering the opportunity to save consumers up to 10 cents a gallon at the pump, it is baffling why more gasoline blenders were not blending more ethanol.”

Renewable Fuels Association Releases September 2007 Ethanol Production and Demand

Area farmer feeds hogs ethanol byproduct

This is an interesting story our of South Dakota where a hog farmer is feeding Distillers Dried Grains (DDGs).

"Health. I keep coming back to health."

Those are the words Mission Hill hog farmer Ray Epp uses to describe his motivation for incorporating dry distiller grains (DDGs) into the feed rations for his 1,200-head pig-to-finishing operation six years ago.

Epp, who uses some of his own corn crop in the ground feed mixture he uses for his hogs, says the use of 10 percent or 20 percent distiller grain ration in his feed has improved the health of his pigs by at least 50 percent.

He goes on to say that the hogs also gain weight quicker, finish out faster and allows him to feed less corn which saves him money.

Area farmer feeds hogs ethanol byproduct

Turning Glycerin Into Gold

Glycerin is the byproduct of making biodiesel. For every gallon of biodiesel made you get about 1/10 of a gallon of glycerin. Biodiesel manufacturers have always depended on the value derived from the sale of glycerin to make the overall economics of production worthwhile. And although glycerin is used in many products, as biodiesel production has increased the amount of glycerin has also increased, creating an oversupply situation and lowering the value of glycerin. Add to that the rising costs of feedstocks and biodiesel manufacturers have seen profit margins decreasing.

Two processes have been in the news lately which may allow producers to process glycerin into higher value products.

Turning a Glycerin Glut Into Ethanol Helps Biofuel Industry

Generating Hydrogen From Biodiesel Waste

E85 and C.A.F.E. Standards

I have heard it said that the only reason the automakers make flex fueled vehicles is to satisfy their Corporate Average Fuel Economy (CAFE) standards. Well, let's look at that a little closer.

The CAFE system is run by the National Highway Traffic Safety Administration (NHTSA) and if you aren't very familiar with it, you might want to read their CAFE Overview.

Under CAFE flex fueled vehicles are given special consideration. Using an example from the overview, a flex fueled vehicle that gets 25 mpg on gasoline would be calculated to get 40 mpg. This is where the argument comes in that flex fueled vehicles are skewing CAFE numbers for the manufacturers. You can imagine all those flex fuel SUVs running around being counted against CAFE as if they were economy cars. But the CAFE rules have a maximum increase of .9 mpg attributable to flex fueled vehicles.

According to Cars.com for the 2006 model year GM's domestic car fleet averaged 29.2 mpg. The CAFE standard for car fleets is 27.5 mpg. Since GM's average of 29.2 mpg is higher than the standard of 27.5 mpg by more than .9 mpg, flex fueled vehicles did nothing in 2006 to help GM reach their CAFE requirements on their domestic car fleet.

It should also be noted that flex fueled vehicles may not have increased GM's numbers by the whole .9 mpg. As far as I know there isn't any place to go to find out exactly how much flex fueled vehicles helped the overall numbers for the manufacturers. So Ford with a domestic car fleet average of 28.2 mpg or .7 mpg higher than the standard may or may not have made it without the credits from flex fueled vehicles.

Of course in 2006 GM built flex fueled cars even though they didn't need the numbers to meet the standards. And they continued to do so in 2007 and 2008. Even though they don't need to from a CAFE perspective.

So the next time that you hear that the only reason manufacturers make flex fueled vehicles is to get around CAFE requirements you will know that that is not always the case.

Oil Pipeline Industry Expands Ethanol R&D

The Association of Oil Pipe Lines (AOPL) recently announced that an expansion of ongoing research into the feasibility of transporting ethanol blends up to E20 through existing pipelines.

The thing that strikes me about this is that it now seems that all the statements we have heard back in the past about ethanol not being compatible with existing pipelines were made before any testing was done. In the press release it says that initial results are expected in 12-18 months and at that time we may learn that the whole pipeline issue has been just another bit of misinformation levied against ethanol.

Oil Pipeline Industry Expands Ethanol R&D

Where to Buy E85 and Biodiesel

Probably one of the most common questions surrounding biofuels is where can they be bought. Here are some sites that list locations.

E85

National Ethanol Vehicle Coalition
NearE85

Biodiesel

National Biodiesel Board
NearBio

E10 - There are no national sites that I know of that lists locations where E10 can be found. To find E10 in your area may require some searching. Here are a few that I know of.

East Tennessee Clean Fuels Coalition Alternative Fuels Locator
Florida's Alternative and Renewable Fuel Station Locator
Kansas E10 Locations
Kentucky Ethanol Loactions
Montana Ethanol Locations

Koenigsegg to Produce E85 Supercar

Koenigsegg is set to produce it's most powerful car to date, the CCXR. The CCXR will be powered by a twin supercharged 4.7L putting out 1,018 hp on E85. Just for reference that is 210 hp greater than the same engine in the CCX designed to run on 91 octane gasoline.

While this isn't exactly a car for the masses, it does show pretty well the performance potential a car designed for E85 can have.

Koenigsegg CCXR Specifications

French fry oil to be tested on Guantanamo fleet

The Guantanamo Bay U.S. Naval Base in Cuba is home to about 4000 people and produces about 1500 gallons per month of used cooking oil. Now instead of sending that oil to the landfill the Navy is starting to convert it to biodiesel to help offset some of their fuel needs.

French fry oil to be tested on Guantanamo fleet

Alternative Fueled Alternative Fuel Plants

So much is being said about the use of fossil fuels in the production of ethanol that I thought it would be interesting to look at some plants that are using alternative energy sources for their production process.

POET - Chancellor, SD

This plant is undergoing an expansion that will allow it to make 100 million gallons of ethanol per year. As part of the expansion a solid waste boiler is being installed that will allow POET to provide about 60% of the energy needs for the plant from the burning of wood wastes from a local pallet company.

POET also announced that it has reached an agreement with the City of Sioux Falls to purchase landfill gas (methane) from the Sioux Falls Regional Sanitary Landfill. Initially the landfill gas will displace 10% of the plants natural gas needs rising to 30% in 2025 as the volume of gas the landfill creates increases.

POET - Scotland, SD

Scotland is the site of POET's 9 million gallon per year cellulosic ethanol research plant. The plant is now run on biogas produced by the anaerobic digestion of the waste stream left over after cellulosic ethanol has been produced.

Calgren Renewable Fuels - Pixley, CA

52 million gallon per year ethanol plant that uses waste heat from a cogeneration plant at the site to reduce natural gas use by 20 percent and the addition of biogas produced by the anaerobic digestion of cow manure will cut natural gas usage overall another eight percent in the production process.

Blue Flint Ethanol - Underwood, ND

This plant is located next to a coal fired electric producing plant and uses waste heat from that plant to produce 50 million gallons per year of ethanol.

Siouxland Ethanol - Jackson, NE

50 million gallon per year ethanol plant uses methane recovered from a nearby landfill to offset about 10% of it's natural gas requirements.

Corn Plus Cooperative - Winnebago, MN

44 million gallon per year ethanol plant that burns biomass to reduce it's natural gas needs by about 50%. This plant has also installed two electric producing wind turbines that produce about 45% of the plants electrical needs.

Central Minnesota Ethanol Co-op - Little Falls, MN

21.5 million gallon per year plant that uses a biomass gasification system to replace all of it's natural gas needs and also provides about 33% of it's electric needs (through the use of cogeneration). The system uses wood wastes from local industries for fuel.

Chippewa Valley Ethanol Company - Benson, MN

33 million gallon ethanol that is installing a biomass gasification system that will eventually replace about 90% of the plants natural gas needs. The first phase of the process is expected to be completed in early 2008 and will replace about 20% of the plants natural gas needs. The entire project is divided into 3 phases and will take about 3 years to complete.

Abengoa Bioenergy - Colwich, KS

25 million gallon ethanol plant that uses landfill gas from the Brooks Landfill to offset some of it's natural gas needs. Annual natural gas savings are estimated at $1.4 million per year.

Mid-Missouri Ethanol - Malta Bend, MO

40 million gallon per year ethanol plant that is using landfill gas from nearby Shawnee landfill to offset more than 90% of it's natural gas needs.

E3 Biofuels - Meade, NE

24 million gallon per year ethanol plant that uses an anaerobic digester to convert cow manure to methane to power the plant.

E3 had initial problems that limited their production output to about half. The company claims poor construction and has sued the contractor. This lead to E3 filing for bankruptcy and has not resumed production.

Renova Energy - Heyburn, ID

20 Million gallon per year ethanol plant that is using an anaerobic digester to produce methane to displace all of it's natural gas needs and a some of it's electricity. The digester will be fed the thin stillage from the ethanol making process and whey wastes from a nearby cheese plant.

Renova ran into cost overruns on this project and has filed for bankruptcy. The plant is yet to be completed.

Panda Ethanol - Hereford, TX

105 million gallon per year ethanol plant currently under construction. It will use gasified cow manure to provide energy for the production process.

In 2009 Panda ran into cost overruns and the Hereford facility files for bankruptcy. The plant has yet to be finished.

Where did all our money go?

In 2006 we imported 10,118,000 barrels of oil per day. At current prices, that means that we are spending right at a billion dollars per day on imported oil.

Think about that for a minute. A billion dollars leaves our borders every day.

Now I know that the United States is a wealthy country, but how long can we afford to maintain our lifestyle when we are sending such large chucks of money to other countries? Unless we do something to change things we may all wake up one day in the future and ask where did all our money go.

What can we do to change things? Buy American, support renewable home grown energy source such as ethanol and biodiesel.

EIA: U.S. Imports of Crude Oil and Petroleum Products

Brewers Increase Prices

In an article published in The News-Herald titled "Brewers Increase Prices" claims that beer prices are going up because farmers decreased hops acreage in favor of other crops, like corn for ethanol. They also suggest that the same thing has happened with barley.

Well, just how true are these claims?

Hops

Area Harvested 2006 29,400 acres, 2007 31,000 acres.
Production 2006 57,671,800 pounds, 2007 60,570,700 pounds

Barley

Area Harvested 2006 2,951,000 acres, 2007 3,508,000 acres
Production 2006 180,165,000 bushels, 2007 211,825 bushels

All these numbers are published by the USDA and can be found in their November Report

A Closer Look at Ethanol and Pipelines.

The old argument goes that ethanol can't be sent through our existing pipeline infrastructure, so it must be shipped via rail or truck which burns more fuel and emits more greenhouse gases.

On the surface this sounds like a good old fashioned common sense issue, but is it really?

Of course what is implied in this argument is that gasoline is a better choice because of it's ability to shipped through the pipelines. Most people assume that all gasoline and other petroleum products are shipped through pipelines to terminals and only have to be trucked that last little bit to the gas station. But according to the American Petroleum Institute, pipelines carry about 68% of the petroleum and petroleum products moved domestically. About 27% of the remainder is moved by water and about 5% by truck or rail.

Just to put these numbers in perspective, we use about 140 billion gallons of gasoline per year, so that would mean that almost 45 billion gallons had to be shipped by means other than the pipelines. Compared to only 5 billion gallons of ethanol being shipped last year. Which do you think requires more fuel and emits more greenhouse gases, shipping 45 billion gallons of gasoline or 5 billion gallons of ethanol?

The argument also fails to take into account that ethanol plants are smaller, less expensive, and easier to construct than oil refineries. That means that if a particular area needs more ethanol, new plants can be built in that area to service that need. Doing so cuts down greatly on transportation needs and negates the need for pipelines.

GSPI Signs Contract to Build Algae-to-Biodiesel Facility

November 13, 2007 Green Star Products, Inc. (OTC:GSPI) today announced that it has signed a contract to build a 100-acre Commercial Algae Facility in the Midwest.

Press Release

Weekly National E85 Price

The Ethanol Promotion and Information Council (EPIC) reports the weekly average price per gallon for E85 is $2.29. How does that compare to the cost of regular unleaded in your area?

Ethanol Promotion and Information Council (EPIC)

E85 Stations on the Rise

The National Ethanol Vehicle Coalition reports 1378 stations across the country now offering E85. That is up from 1200 station on May 7, 2007.

National Ethanol Vehicle Coalition

Florida Creates Alternative Fuels Locator Website

The Florida Department of Agriculture has created a website listing the location where E85, E10, and biodiesel can be found in the state.

Florida's Alternative and Renewable Fuel Station Locator

Resources

Ethanol Energy Balance Studies

• Improvements in Life Cycle Energy Efficiency and Greenhouse Gas Emissions of Corn-Ethanol - Adam J. Liska, Haishun S. Yang, Virgil R. Bremer, Terry J. Klopfenstein, Daniel T. Walters, Galen E. Erickson, and Kenneth G. Cassman January 2009
• Analysis of the Efficiency of the U.S. Ethanol Industry 2007 By May Wu - March 2008
• Impact of Combined Heat and Power on Energy Use and Carbon Emissions in the Dry Mill Ethanol Process November 2007
• Thermodynamics of the Corn-Ethanol Biofuel Cycle By Tad W. Patzek July 2006
• Review of Corn Based Ethanol Energy Use and Greenhouse Gas Emissions By Tiffany Groode June 2006
• Environmental, economic, and energetic costs and benefits of biodiesel and ethanol biofuels By Jason Hill, Erik Nelson, David Tilman, Stephen Polasky, and Douglas Tiffany June 2006
• Ethanol Can Contribute to Energy and Environmental Goals By Alexander E. Farrell, Richard J. Plevin, Brian T. Turner, Andrew D. Jones, Michael O’Hare, Daniel M. Kammen January 2006
• Updated Energy and Greenhouse Gas Emissions Results of Fuel Ethanol By Michael Wang September 2005
• Ethanol Production Using Corn, Switchgrass, and Wood; Biodiesel Production Using Soybean and Sunflower By David Pimentel and Tad W. Patzek March 2005
• Ethanol Fuels: Energy Balance, Economics, and Environmental Impacts are Negative By David Pimentel June 2003
• Fossil Energy Use in the Manufacture of Corn Ethanol By Michael S. Graboski August 2002
• The Energy Balance of Corn Ethanol: An Update By Hosein Shapouri, James A. Duffield, and Michael Wang. July 2002
• The 2001 Net Energy Balance of Corn-Ethanol By Hosein Shapouri and Andrew McAloon

Ethanol Economic Benefit Studies

• CONTRIBUTION OF THE ETHANOL INDUSTRY
  TO THE ECONOMY OF THE UNITED STATES 2008
• A Welfare Analysis of the U.S. Ethanol Subsidy - November 2008
• Contribution of the Biofuels Industry to the Economy of Iowa January 2008
• The Contribution of the Ethanol Industry to the American Economy in 2007
• The Contribution of the Ethanol Industry to the American Economy in 2006
• The Contribution of the Ethanol Industry to the American Economy in 2005
• The Contribution of the Ethanol Industry to the American Economy in 2004

Ethanol Fuel Economy Studies

• Optimal Ethanol Blend-Level Investigation November 2007
• Fuel Economy Study August 2005

Food Issues

• The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions - Congressional Budget Office April 2009
• Ethanol and Food Prices - Preliminary Assessment - Richard K. Perrin May 2008
• Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Commodity Prices - Ronald Trostle May 2008
• The Effect of Ethanol Production on the U.S. National Corn Price - T. Randall Fortenbery and Hwanil Park April 2008
• The Effects of Ethanol on Texas Food and Feed - David P. Anderson, Joe L. Outlaw, Henry L. Bryant, James W. Richardson, David P. Ernstes, J. Marc Raulston, J. Mark Welch, George Knapek, Brian K. Herbst, and Marc Allison April 10, 2008
• What is Driving Food Price Iinflation? Kansas City Federal Reserve Bank March 2008
• Analysis of Potential Causes of Consumer Food Price Inflation November 2007
• Ethanol, Barley and Beer July 2007
• The Relative Impact of Corn and Energy Prices in the Grocery Aisle June 2007
• An Analysis of the Effects of an Expansion in Biofuel Demand on U.S. Agriculture By USDA May 2007

Cellulosic

• Net energy of cellulosic ethanol from switchgrass November 2007

Environment

• Water Intensity of Transportation - June 2008
• Clearing the Air with Ethanol March 2006
• Effects of Ethanol and Volatility Parameters on Exhaust Emissions By Thomas D. Durbin, J. Wayne Miller, Theodore Younglove, Tao Huai, and Kathalena Cocker January 2006
  
  Note : One of the conclusions of this study was that increasing from E0 to E10 reduced fuel economy by 1.4%.
• Air Quality and Ethanol in Gasoline February 2004

Biodiesel

• Effect of Biodiesel Blends on Diesel Particulate Filter Performance October 2006
• Contribution of The Biodiesel Industry to the Economy of the United Sates September 2006
• A Comprehensive Analysis of Biodiesel Impacts on Exhaust Emissions By EPA October 2002
• A Look Back at the U.S. Department of Energy’s Aquatic Species Program—Biodiesel from Algae July 1998

Misc

• Effects of Intermediate Ethanol Blends on Legacy Vehicles and Small Non-Road Engines, Report 1 October 2008
• Use of Mid-Range Ethanol/Gasoline Blends in Unmodified Passenger Cars and Light Duty Trucks July 1999

Industry Websites

• American Coalition for Ethanol
• Ethanol Promotion and Information Council (EPIC)
• National Algae Association
• National Biodiesel Board
• Renewable Fuels Association

Industry Publications

• Biodiesel Magazine
• Ethanol Producer Magazine

Plants List

• Ethanol Plant List
• Biodiesel Plant List

Locators - Ethanol

• NEVC E85 Station List
• NearE85

Locators - Biodiesel

• National Biodiesel Board Station List
• NearBio

Links

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