August biodiesel production totaled 66,696,000 gallons, down from 67,410,000 gallons in July.
August 2008 - 66,696,000 gallons
July 2008 - 67,410,000 gallons
June 2008 - 63,378,000 gallons
May 2008 - 52,500,000 gallons
April 2008 - 52,836,000 gallons
March 2008 - 49,056,000 gallons
February 2008 - 43,260,000 gallons
January 2008 - 50,736,000 gallons
2007 - 489,804,000 gallons
Source : EIA : Biodiesel Overview
November 28, 2008
November 27, 2008
September Ethanol Production Down Slightly
September ethanol production dipped slightly from the prior months totals. Imports, stocks and consumption all rose.
Source: - Energy Information Administration
Ethanol Production Numbers in Gallons | ||||
|---|---|---|---|---|
Production | Imports | Stocks | Consumption | |
September 2008 | 806,274,000 | 103,572,000 | 671,748,000 | 863,142,000 |
August 2008 | 842,478,000 | 81,102,000 | 625,044,000 | 852,348,000 |
July 2008 | 799,764,000 | 57,120,000 | 553,812,000 | 819,840,000 |
June 2008 | 736,848,000 | 65,982,000 | 516,768,000 | 791,910,000 |
May 2008 | 778,806,000 | 36,372,000 | 505,848,000 | 793,968,000 |
April 2008 | 708,456,000 | 60,942,000 | 484,638,000 | 763,182,000 |
March 2008 | 730,674,000 | 15,456,000 | 478,422,000 | 707,238,000 |
February 2008 | 631,050,000 | 20,286,000 | 439,530,000 | 660,114,000 |
January 2008 | 664,356,000 | 20,790,000 | 448,308,000 | 679,308,000 |
December 2007 | 636,762,000 | 8,904,000 | 442,470,000 | 674,352,000 |
November 2007 | 602,592,000 | 16,506,000 | 471,156,000 | 628,800,000 |
October 2007 | 588,756,000 | 41,916,000 | 480,858,000 | 635,124,000 |
Source: - Energy Information Administration
November 25, 2008
Poet in buyout talks with other ethanol producers
POET LLC, the nations largest ethanol producer said in an AP article that it was in buyout talks with a number of ethanol companies."We just feel there is a lot of promise in the future of the ethanol industry," said Jeff Broin, chief executive of privately held Poet.
He offered no specific timetable and mentioned no company names.
As I mentioned in my last post, VeraSun announced in a press release that it had an indication of interest for purchasing it's assets. As far as I know these two events are separate.
Broin did say in the article that they were looking at entire ethanol companies and plants that were in favorable locations and had the right amenities.
Source : Cleveland.com
VeraSun Receives Indication Of Interest Of Purchase Of Assets
VeraSun announced in a press release that it had received indication from an interested buyer.VeraSun Energy Corporation (VSUNQ), one of the nation’s largest ethanol producers, today announced that it recently received a non-binding unsolicited indication of interest with respect to the purchase of substantially all of its assets. The Company intends to pursue this indication of interest to its conclusion and evaluate other proposals it may receive in accordance with its obligations as a debtor in possession under chapter 11 of the Bankruptcy Code. The indication of interest received by the Company is subject to significant conditions, and there can be no assurance that it will result in the consummation of a transaction, that the Company will receive any other offers or indications of interest, that the Company will be able to complete any alternative transaction or that any transaction or transactions would generate proceeds sufficient to satisfy the claims of all of the Company’s stakeholders.
Due to confidentiality considerations, the identity of the third party and the terms of its indication of interest were not disclosed.
The company says that it plans to explore this and any other potential proposals.
Source : VeraSun Press Release
November 21, 2008
Renewable Fuel Standard Increased for 2009
The EPA recently announced the renewable fuels requirement for 2009.
Source : EPA
This has caused some confusion though as some sources are saying that it requires 11.1 billion gallons of ethanol to be blended into the fuel supply next year. This isn't correct, the amount ethanol is set at 10.5 billion gallons, biodiesel is set at 500,000 gallons and 100,000 gallons must come from advanced biofuels for a total of 11.1 billion gallons.
The 2009 renewable fuel standard (RFS) will be 10.21 percent to ensure that at least 11.1 billion gallons of renewable fuels be blended into transportation gasoline.
The Energy Independence and Security Act of 2007 (EISA) established the annual overall renewable fuel volume targets, reaching a level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard by November 30 for the following year. Based on the standard, each refiner, importer and non-oxygenate blender of gasoline determines the minimum volume of renewable fuel that it must ensure is used in motor vehicle fuel. The 2008 standard was 7.76 percent, equating to roughly 9 billion gallons.
Source : EPA
This has caused some confusion though as some sources are saying that it requires 11.1 billion gallons of ethanol to be blended into the fuel supply next year. This isn't correct, the amount ethanol is set at 10.5 billion gallons, biodiesel is set at 500,000 gallons and 100,000 gallons must come from advanced biofuels for a total of 11.1 billion gallons.
Oil Closes Below $50 Per Barrel
According to the New York Times, oil closed below $50 per barrel on Thursday. The last time oil closed below $50 dollars was in May 2005.
The article also says that some analysts are predicting that oil come go as low as #30 to $40 per barrel.
While this is good news for consumers at the pump, it poses some risks that oil companies will not invest the necessary amounts into developing new resources which could lead to higher oil prices once the economy starts to rebound.
For me it shows how just a small percentage decrease in oil demand can cause a large decline in prices. As the article notes domestic oil consumption is expected to fall by about 1.1 million barrels of oil per day this year, about a 5.4% decline. Most sources attribute the decline to the failing economy but without the contribution of 647,000 barrels per day of ethanol production I don't think we would be seeing as sharp of a decline in oil prices as we have.
That is not to say that ethanol alone can solve our energy problems, but it does show how a combination of biofuels, conservation, and new technologies (imagine a fleet of hybrids powered by E85 or biodiesel) can have a large effect on the price of oil.
The article also says that some analysts are predicting that oil come go as low as #30 to $40 per barrel.
While this is good news for consumers at the pump, it poses some risks that oil companies will not invest the necessary amounts into developing new resources which could lead to higher oil prices once the economy starts to rebound.
For me it shows how just a small percentage decrease in oil demand can cause a large decline in prices. As the article notes domestic oil consumption is expected to fall by about 1.1 million barrels of oil per day this year, about a 5.4% decline. Most sources attribute the decline to the failing economy but without the contribution of 647,000 barrels per day of ethanol production I don't think we would be seeing as sharp of a decline in oil prices as we have.
That is not to say that ethanol alone can solve our energy problems, but it does show how a combination of biofuels, conservation, and new technologies (imagine a fleet of hybrids powered by E85 or biodiesel) can have a large effect on the price of oil.
November 19, 2008
Kinder Morgan Ready For Ethanol Shipments
Kinder Morgan says that it is ready to take customer orders for shipments through their Central Florida Pipeline.
Source : The OilSpot News
Emily Thompson said she expects the pipeline to start moving ethanol this week as scheduled, although an exact date was not confirmed. The 16-inch pipeline runs between Tampa and Orlando, Fla.
Source : The OilSpot News
November 16, 2008
Is The Ethanol Industry On It's Deathbed?
Over the last couple of weeks there have been a large number of articles in the news about the troubles facing the ethanol industry. Many point to the recent bankruptcy filing by VeraSun as proof that ethanol industry is on it's last leg.
While there are several ethanol producers that have filed for bankruptcy lately, VeraSun, the nations second largest ethanol producer was by far the largest.
But there are signs that the situation is not as bad as it looks. Both POET and ADM has made statements recently that they may be considering buying assets from some of the ailing producers.
Another company that recently filed for bankruptcy, Greater Ohio Ethanol, has been actively trying to find buyers for the assets the company holds. According to an article published yesterday there are interested buyers out there.
If the situation was as dire as some have suggested I doubt there would be this kind of interest in buying their assets.
While there are several ethanol producers that have filed for bankruptcy lately, VeraSun, the nations second largest ethanol producer was by far the largest.
But there are signs that the situation is not as bad as it looks. Both POET and ADM has made statements recently that they may be considering buying assets from some of the ailing producers.
Another company that recently filed for bankruptcy, Greater Ohio Ethanol, has been actively trying to find buyers for the assets the company holds. According to an article published yesterday there are interested buyers out there.
The company is aggressively marketing its assets, it said in court filings Friday. A two-page summary of what's available was given to 200 interested potential bidders, and nine of them have asked for additional confidential business information.
If the situation was as dire as some have suggested I doubt there would be this kind of interest in buying their assets.
November 15, 2008
Report Concludes Specualtion A Major Contributor To Higher Food Prices
A new report from the Institute for Agriculture and Trade Policy has concluded that excessive speculation is a major reason for the rapid rise in commodity prices.
This puts in doubt the report from the World Bank earlier in the year that said that biofuels were responsible for 75% of the global rise in food prices. In their report they concluded that biofuels pushed food prices up in part through encouraging speculation. But the fact that commodity prices have come down by about 50% while biofuels production continues to climb shows that to be a false assumption.
Report : Commodities Market Speculation: the Risk to Food Security and Agriculture
The IATP report, “Commodities Market Speculation: the Risk to Food Security and Agriculture”, concludes that U.S. government deregulatory steps opened the door for large financial services speculators to make huge “bets” that destabilized the structure of agriculture commodity markets. According to the United Nations, global food prices rose an estimated 85 percent between April 2007 and April 2008. Prices rose for wheat (60 percent), corn (30 percent) and soybeans (40 percent) beyond what could be explained by supply, demand and other fundamental factors, the report found.
This puts in doubt the report from the World Bank earlier in the year that said that biofuels were responsible for 75% of the global rise in food prices. In their report they concluded that biofuels pushed food prices up in part through encouraging speculation. But the fact that commodity prices have come down by about 50% while biofuels production continues to climb shows that to be a false assumption.
Report : Commodities Market Speculation: the Risk to Food Security and Agriculture
November 09, 2008
Wind Energy Doesn't Save Anything On Carbon Emissions?
A few days back I noticed an article on the fight being waged by a group of residents to stop a wind energy project from being developed in their area. One of the comments got me thinking.
Saying that a technology doesn't save anything on carbon emissions seems to be the modern equivalent to the Salem witch trials. Anyone that is opposed to a certain technology makes that claim. The claim has been made against ethanol and biodiesel and now wind. I bet that if I were to look around I could find someone making the same claims about every form of alternative energy.
Source : Manvers Wind Concerns
Lorrie Gillis, the group's spokesperson, said members are also questioning the economic feasibility of turbines, which "don't save anything on carbon emissions," nor have they lead to the closure of any coal burning generating plants.
Saying that a technology doesn't save anything on carbon emissions seems to be the modern equivalent to the Salem witch trials. Anyone that is opposed to a certain technology makes that claim. The claim has been made against ethanol and biodiesel and now wind. I bet that if I were to look around I could find someone making the same claims about every form of alternative energy.
Source : Manvers Wind Concerns
November 03, 2008
Ethanol's Water Consumption
The Christian Science Monitor published a story today about water consumption and made some remarks about ethanol and biodiesel which aren't true.
As the quote notes, their information is taken from a recent study. The study looked at irrigated and non-irrigated biofuels. The numbers they quote are for irrigated biofuels.
Their quoted amount of water consumption for biodiesel is also the number for soy from irrigated fields.
The problem with using the irrigated number is that less than 15% of all corn grown in this country is irrigated. So while a small percentage of the ethanol produced in this country may indeed consume the amount of water they say, the vast majority uses a much smaller amount.
I don't have any numbers on how much of the soy crop is irrigated but I think it is safe to say that not all of it is so assigning the higher irrigated number to all biodiesel would also be less than truthful.
I would have expected better from this organization.
Source : Water Intensity of Transportation
Not surprisingly, while gasoline consumes water at 0.15 gallons per mile, biofuels like ethanol slurp an average of 28 gallons per mile. Biodiesel from soybeans comes in at 8 gallons per mile. Electric cars and plug-in hybrids compare favorably with conventional fossil fuels, consuming a bit more than 0.2 gallons of water per mile. The most watertight combo: electric vehicles recharged through renewable sources of electricity. The study appeared in the Nov. 1 issue of Environmental Science and Technology.
As the quote notes, their information is taken from a recent study. The study looked at irrigated and non-irrigated biofuels. The numbers they quote are for irrigated biofuels.
If ethanol is processed from corn grain in irrigated fields, then water consumption is 1.3−62 gal H2O/mile (average of 28 gal H2O/mile) and withdrawal is 6.9−110 gal H2O/mile (average of 36 gal H2O/mile). Ethanol processed from corn grain from nonirrigated fields results in water consumption and withdrawal intensities of 0.15−0.35 gal H2O/mile and 0.33−0.56 gal H2O/mile, respectively.
Their quoted amount of water consumption for biodiesel is also the number for soy from irrigated fields.
Biodiesel derived from irrigated soybean fields has water consumption of 0.6−24 gal H2O/mile (average of 8 gal H2O/mile) and withdrawal of 1.1−26 gal H2O/mile (average of 10 gal H2O/mile). If the soy fields are not irrigated, then just as with ethanol, the consumption and withdrawal are 2 orders of magnitude less at 0.01−0.02 gal H2O/mile and 0.03−0.12 gal H2O/mile, respectively.
The problem with using the irrigated number is that less than 15% of all corn grown in this country is irrigated. So while a small percentage of the ethanol produced in this country may indeed consume the amount of water they say, the vast majority uses a much smaller amount.
I don't have any numbers on how much of the soy crop is irrigated but I think it is safe to say that not all of it is so assigning the higher irrigated number to all biodiesel would also be less than truthful.
I would have expected better from this organization.
Source : Water Intensity of Transportation
Fighting Terror With Alternative Energy
Shimon Peres, President of Israel, spoke about fighting terror by developing alternative energy at a celebration of his 85th birthday in August.In a meeting with representatives of the students' village in the town of Dimona on Thursday, Peres said "today we face the problem of terror and Iran. The problem itself is like a swamp with mosquitoes. It's preferable to dry out the swamp than try to kill every single mosquito.
"When the price of oil rises, the terrorist organizations feel better; this feeling needs to be brought back down. The way to bring Iran, Venezuela and even Russia in some respects down is to lower the price of oil. Attacking oil fields is foolish. We can attack with energy, meaning create alternative energy".
Source : Y Net News
November 01, 2008
E85 Stations Top 1800
October was another good month for the spread of E85 with 55 new refueling locations being added. The total number of stations now stands at 1837.November 1, 2008 - 1837
October 1, 2008 - 1782
September 1, 2008 - 1743
August 1, 2008 - 1663
July 1, 2008 - 1627
June 1, 2008 - 1579
May 1, 2008 - 1560
April 1, 2008 - 1521
March 1, 2008 - 1501
February 1, 2008 - 1475
November 9, 2007 - 1378
May 7, 2007 - 1200
The current number plus the locations of all E85 stations can be found at the National Ethanol Vehicle Coalition.