February 25, 2009

QuantumSphere Awarded Research Grant to Turn Algae into Biofuels

QuantumSphere, Inc., a leading developer of advanced catalyst materials, high-performance electrode systems, and related process chemistries for portable power and clean-tech applications, today announced that it was awarded a research grant from the California Energy Commission to develop a process using nanocatalysts to convert biomass into biofuels.

The grant was awarded under the commission's Energy Innovations Small Grant program (EISG) and will fund the one-year development of an algae biogasification process that utilizes nanometals as catalysts for the purposes of turning vegetation and similar biomass materials into methane, hydrogen, or other synthetic gases that can be used for transportation and other energy needs. QuantumSphere will build a small-scale platform over the next 12 months to demonstrate the effectiveness of the process.

Algae-based bio fuels hold great promise due to their enormous energy potential. According to experts, algae grows 20 to 30 times faster than food crops, contains up to 30 times more fuel than equivalent amounts of other bio fuel sources, and can be grown almost anywhere. Studies show that algae can produce up to 60% of its biomass in the form of oil or carbohydrates. This oil can then be turned into biodiesel which could be sold for use in automobiles. The carbohydrates can be turned into alcohols, or gasified to bio gas, hydrogen, or methane, for many industrial applications.

"Our vision for this project was to use this process to take wet algae produced in a place like the Salton Sea in the Imperial Valley of California and convert it into renewable fuels," said Subra Iyer, principal technologist for QuantumSphere, Inc. "The Salton Sea is a place for large amounts of agricultural runoff which sometimes creates large algae blooms. If successful, we envision a large plant on the shore of the Salton Sea that could convert large amounts of wet algae into renewable fuels."

Source : QuantumSphere Press Release

Mascoma Demonstration Scale Cellulosic Ethanol Plant Starts Up

Mascoma Corporation, a leader in the development of low carbon cellulosic ethanol, today announced that the company's demonstration facility in Rome, New York, is now producing ethanol from non-food cellulosic biomass.

"This is an important milestone for the cellulosic ethanol industry and for Mascoma. We are grateful for the support NYSERDA and NYPA have provided for the past two years," said Bruce A. Jamerson, CEO of Mascoma Corporation. "They have been outstanding partners and we couldn't have built this plant without them."

Completed in December 2008, the Rome, NY plant is one of the largest facilities converting non-food biomass into cellulosic ethanol in the United States. The facility currently has a production capacity of up to 200,000 gallons of cellulosic ethanol per year. Construction began in early 2008.

Source : MarketWatch

February 24, 2009

Ethanol's Economic Contribution in 2008

In what has become an annual report, John Urbanchuk of LECG LLC has released a report on the economic contribution of the ethanol industry in 2008.

The following summarizes the economic contribution of the American ethanol industry.

  • The full impact of the spending for annual operations, ethanol transportation, capital spending for new plants under construction, and R&D spending added $65.6 billion to the nation’s Gross Domestic Product (GDP) in 2008.
  • New jobs are created as a consequence of increased economic activity caused by ethanol production. The increase in economic activity resulting from ongoing production, construction of new capacity, and R&D supported more than 494,000 jobs in all sectors of the economy during 2008.
  • Increased economic activity and new jobs result in higher levels of income for American households. The economic activities of the ethanol industry put an additional $19.9 billion into the pockets of American consumers in 2008.
  • The ethanol industry more than paid for itself in 2008. The combination of increased GDP and higher household income generated an estimated $11.9 billion in tax revenue for the Federal government and nearly $9 billion of additional tax revenue for State and Local governments. The estimated cost of the two major Federal incentives in 2008, the Volumetric Ethanol Excise Tax Credit (VEETC) and ethanol Small Producer Credit, totaled $4.7 billion. Consequently, the ethanol industry generated a surplus of $7.1 billion for the Federal treasury.
  • Ethanol reduces our dependence on imported oil and reduces the U.S. trade deficit. The production and use of ethanol displaces crude oil needed to manufacture gasoline. According to the Energy Information Administration imports account for more than 65 percent of our crude oil supplies and oil imports are the largest component of the expanding U.S. trade deficit. The production of nine billion gallons of ethanol means that the U.S. needed to import 321.4 million fewer barrels of oil in 2008 to manufacture gasoline, or roughly the equivalent of five percent of total U.S. crude oil imports. The value of the crude oil displaced by ethanol amounted to $32 billion in 2008.3 This is money that stayed in the American economy.

Source : CONTRIBUTION OF THE ETHANOL INDUSTRY TO THE ECONOMY OF THE UNITED STATES

MODERN ETHANOL PLANT HAS NEGLIGIBLE IMPACT ON LAND USE, NEW SCIENTIFIC STUDY FINDS

Proposed EPA and California renewable fuel standards relying upon incomplete science may threaten ethanol market and worsen global warming impact

A new study announced today on ethanol land use impact found that a modern ethanol plant does not meaningfully change farmland use, neither the amount of land farmed nor the mix of crops planted (e.g., corn, soybeans). Commissioned by the Illinois Corn Growers (ICGA), the study's findings contest an unproven theory that increased production of corn ethanol results in the conversion of unused farm land into corn production and an increase in the percentage of corn acres planted by farmers. "This is the most thorough and far-reaching study on land use impact done to date," stated Rod Weinzierl, executive director of the ICGA. "It demonstrates that the often cited link between new ethanol plants and the conversion of non agricultural land to corn is highly questionable. Corn ethanol is not a central driver in the conversion of non-corn farmland to corn production."

The study was conducted by Dr. Steffen Mueller from the Energy Resources Center at the University of Illinois at Chicago utilizing a modern ethanol plant in Rochelle, Illinois (approximately 75 miles northwest of Chicago) as its test subject. The study looked at relevant farming data - including satellite imagery and farmer surveys - one year prior to the plant opening through to two years after.

"Our objective was to take a bottom-up approach to data collection and analysis, and thereby arrive at a fully considered assessment on the potential impact of ethanol production on farm land use," commented Dr. Mueller. "We examined each acre of farmland within a 40 mile radius of the test site - prior to and after the launch of an ethanol plant - and found that neither intensification nor extensification occurred. Farmers had land available to convert (extensification) for corn production and did not. And, ethanol plant grain demand was quickly met by incremental production improvements and so increased percentages of corn acres (intensification) cannot be explained by the new ethanol plant. The results of this study on one modern ethanol plant are sufficiently dramatic to indicate that the science of ethanol and land use is far from being set."

The study's findings are in conflict with the current federal and state governmental draft standards that utilize older and less thorough science. "With California a recognized national leader in renewable fuel policy, the risk that state's draft renewable fuel standards being prematurely approved is that ethanol will be branded a brown fuel nationally," stated Rod Weinzierl. "This threatens to marginalize the use of ethanol in the U.S. fuel mix and would have far reaching, non beneficial environmental and financial impact. California will be worsening, not improving, our nation's carbon footprint at a time when we have the green fuel supply to do otherwise."

The study found that a new ethanol plant requiring 20.45 million bushels of corn annually for fuel production utilizes the yield from 104,284 acres, which is less than 7% of the acres from the "draw area." However, during the study period, more than 260,000 acres were converted from mostly soybeans to corn indicating that other factors contributed to corn intensification (an increase in percentage of corn acres grown).

"During the early phase of plant startup it's possible that corn acres are intensified as a result of perceived plant market demand," Dave Loos, Technical Director of ICGA noted. "This quickly levels off and other factors such as export demand and grain economics drive on farm planting decisions. Once an ethanol plant has been in operation for two years, its supply requirements are a marginal factor in local farmers' planting strategy. Annual production increases quickly exceeded the total new demand from the plant."

The study found that while land such as grass and pasture was available for farmers within the ethanol plant draw area to convert to and increase planted corn acres by as much as 21%, less than three tenths of a percent increase actually took place, which is not a meaningful amount.

"As we continue to improve the agricultural productivity and processing efficiencies of corn- based ethanol, it is important that the body of scientific work developing around corn's role as a part of our national renewable fuels strategy keep pace with these advancements," added Dr. Martha Schlicher, vice president of Illinois River Energy. "This study is an accurate reflection of the ability of the advancements in corn productivity to absorb incremental ethanol capacity when plants are appropriately added in the right locations at the right time. While it is very important to clearly understand all of the direct and indirect environmental costs and benefits of renewable fuel use, it is equally critical that we accurately account for current and future technological advancements that reaffirm the environmental benefits of corn ethanol. It is unfortunate that we continue to increase gasoline imports while idling existing available corn based ethanol supply that measures in the billions of gallons."

February 19, 2009

UL Announces Support For Dispensing E15 From Existing Gasoline Pumps

The Underwriters Laboratory (UL) announced today that it supports Authorities Having Jurisdiction (AHJs) who decide to permit legacy system dispensers, Listed to UL 87 and currently installed in the market, to be used with fuel blends containing a maximum ethanol content of 15 percent.

"UL determined that there is no significant incremental risk of damage between E10 and fuels with a maximum of 15 percent ethanol. This conclusion was reached after careful examination of the effects of varying levels of ethanol on components," said John Drengenberg, Consumer Affairs Manager for UL. "We will continue to evaluate test and field findings, as well as the scientific literature, as it becomes available and make this information available to AHJs."

Now if they could just certify a pump for use with E85.

Source : UL News Release

BP and Verenium Form Cellulosic Ethanol Venture

BP and Verenium Corporation today announced the formation of a 50-50 joint venture to develop and commercialize cellulosic ethanol from non-food feedstocks. The joint venture company will act as the commercial entity for the deployment of cellulosic ethanol technology being developed and proven under the first phase of the BP-Verenium partnership, announced last August. Together the companies have agreed to commit $45 million in funding and assets to the joint venture company. This collaboration is intended to progress the development of one of the nation's first commercial-scale cellulosic ethanol facilities, located in Highlands County, Florida and to create future opportunities for leveraging cellulosic ethanol technologies.

"This collaboration represents a critical next step in positioning Verenium and BP at the forefront of commercializing cellulosic biofuels in the United States," said Carlos A. Riva, President and Chief Executive Officer of Verenium. "The creation of this joint venture brings together innovative and experienced developers, designers, engineers, operators and managers capable of realizing the potential of this technology. This is a true convergence of industrial biotechnology and energy production processes, which will allow us to deliver cleaner, more sustainable fuels."

"This next stage in our relationship with Verenium demonstrates our real commitment to making cellulosic ethanol a reality in the U.S. fuels market in the near term. BP and Verenium together have the technological know-how, engineering capability and market expertise required to demonstrate that we can deliver better, more sustainable biofuels, more quickly," Sue Ellerbusch, president of BP Biofuels North America said.

Highlights of the collaboration include:

-- Formation of a joint venture company with a total commitment of $45 million in funding and assets contributed from BP and Verenium, including a total of $22.5 million from BP and development assets from Verenium, including the Highlands County, Florida project and another commercial project site in early stages of development;

-- The joint venture company will be led and supported by a team comprised of employees from both BP and Verenium and will be governed by a board with equal representation from both parent companies; and

-- The joint venture company will initially be based in Cambridge, Massachusetts.

The joint venture company will initially focus on developing and securing financing for a first commercial-scale cellulosic ethanol facility in Highlands County, Florida and expects to break ground on that site in 2010. The estimated construction cost for this 36 million gallon-per-year facility is between $250 and $300 million. Production from this plant is expected to begin in 2012. With plans to add additional capacity, the joint venture company also intends to develop a second site in the Gulf Coast region.

"When we say that this partnership is groundbreaking, we mean it both figuratively and literally. We are striving to move as rapidly as possible because the technology is ready and we know the marketplace is waiting," Riva said. "This process will help fulfil America's renewable fuel mandates, build our nation's domestic infrastructure and create the new green jobs we so badly need."

Source : Verenium Press Release

February 15, 2009

Saudi Oil Minister Warns Against Hasty Transition to Renewable Energy

According to Saudi Arabia’s Oil Minister Ali Naimi, renewable energy sources are not fully equipped to meet the world’s energy demands and that governments should avoid making huge investments in developing clean energy systems.

At a conference in Huston, Mr. Naimi argued that recent injection of billions of dollars by governments to develop renewable energy systems could lead to the collapse of the oil industry. He said that such steps would drive away investors which would hurt the oil producing nations as demand and prices of oil products has been falling sharply. His remarks were clearly aimed at the Obama administration which is reversing President Bush’s policies by openly encouraging massive investments in the renewable energy sector.

Source : Red Green and Blue

DDGS show opportunities for pig farmers

Preliminary results show that rations high in distillers' dried grains with solubles (DDGS) suggest an opportunity for Canada's pork producers to load up on cheap feed.

Pork quality
The study, he said, is now in the process of determining the impact on growth performance and pork quality with the inclusion of high levels of DDGS in the swine diet. So far, though, he reported "no concern whatsoever" in the growth performance of the pigs when fed DDGS. The preliminary results, he said, point to a slightly higher yield of pork with a lower level of intramuscular fat compared to swine fed on a soybean meal-based diet. The lower intramuscular fat, he said, would be an attraction for consumers.

A great way to cut feed costs for pork producers

February 12, 2009

Purdue Creates Renewable Energy Website

Purdue University Extension has powered up a Web site on cleaner, greener energy.

The Renewable Energy site offers an array of resources on environmentally friendly energy sources and conservation. The site is located at http://www.extension.purdue.edu/renewable-energy/.

Web site visitors can learn about installing wind turbines and solar panels, ethanol production and cutting energy costs, among other topics, said Klein Ileleji, a Purdue Extension agricultural engineer.

"The Web site provides information on various sustainable energy technologies and energy efficiency, based on research conducted at Purdue and other universities and government agencies," Ileleji said.

"When you go to the Web site you'll find pages devoted to wind and solar energy, biofuels, and corn ethanol co-products, as well as on-farm energy efficiency systems. There also are topical pages that include Purdue Extension publications, tools and spreadsheets that are used for analysis of various renewable energy systems, and links to other Web sites."

Renewable energy is a research emphasis within Purdue Agriculture. Studies have been conducted, or are under way, on grain and cellulosic ethanol, biodiesel, dried distillers grains with solubles, wind farms and solar heating. Additional research has been done at Purdue's Energy Center at Discovery Park and the Laboratory of Renewable Resources Engineering. Links to those Purdue research facilities and others are available on the Web site.

Interest in renewable energy is growing, said Chad Martin, Purdue Extension renewable energy specialist.

"We get a lot of requests at Purdue for information regarding large-scale and small-scale wind developments at the local county level and from regional groups," Martin said. "We have a number of resources available on the Web site and will add more, as our capacity grows in this area."

Farmers should find the Web site a valuable information source, Martin said.

"Another area of interest, particularly in our agriculture community, is the grain drying energy audits that we help producers conduct," he said. "We work with producers to determine what they are actually spending per bushel to dry grain. Of course, grain drying is a big-ticket area within a modern farming operation. It consumes a tremendous amount of energy, so helping people get an understanding of where they are and where they can make efficiency improvements is beneficial to the industry."

The Web site also has an events page, with a comprehensive listing of renewable energy workshops, conferences and activities in Indiana and across the Midwest.

"You hear a lot about green jobs and energy independence," Ileleji said. "With this Web site we're hoping to be on the cutting edge of the sustainable energy revolution."

The Indiana State Department of Agriculture and Indiana Office of Energy and Defense provided financial support or content for the Web site.

November Biodiesel Production Numbers Up

November biodiesel production numbers were up by about 500,000 gallons over that of October, but still down by about 5 million gallons from it's peak in July.

November 2008 - 62,218,170 gallons
October 2008 - 61,718,000 gallons
September 2008 - 64,134,000 gallons
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 : U.S. Census Bureau

February 11, 2009

December Ethanol Production, Imports, and Consumption Up

Ethanol production in December rose to a little over 854 million gallons, an increase of about 12 million gallons over November production numbers. Imports also increased by about 8 million gallons and stocks fell by just over 42 million gallons. Consumption rose to the highest level yet, increasing by about 64 million gallons.



Ethanol Production Numbers in Gallons


Production

Imports

Stocks

Consumption

December 2008

854,364,000

19,446,000

597,198,000

916,146,000

November 2008

842,268,000

11,676,000

639,534,000

852,474,000

October 2008

842,016,000

25,830,000

638,064,000

901,530,000

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

Source: - Energy Information Administration

February 10, 2009

A Closer Look At Ethanol And Fuel Mileage

Ever since I wrote about ethanol and fuel mileage for the first time I have received emails from readers about how they have experienced larger losses than what can be explained by the difference in the BTU content of ethanol blended gasoline and regular gasoline. A couple of days ago another email came in and I asked permission to republish it here. Below is the email I received on February 4, 2009.

Don't know if you care but I track our two vehicles pretty accurately and
both have now seen 10-12% milage reductions from ethanol inclusion.

RAV 4 pre-ethanol: 25-26mpg month after month in mixed driving. Now 23mpg+-

Ford Focus pre-ethanol: 36-38mpg month after month. Now 33 mpg.

Both cars are standards, the RAV has 194k miles, the Focus 138k miles. Both
maintained consistently, tires rotated every 7,500, neither uses oil, etc.

Both show loss of power as well.

How can this be a positive step forward given the adverse economic and
environmental impacts of ethanol; corn diversion? runoff of pesticides into
water resources, etc.


This email is fairly typical of the emails I have received concerning ethanol and fuel mileage. The first thing I would note is that they always contain a range of mileage on gasoline such as the 25-26 miles per gallon on the Rav 4. We all understand that variables in driving style, weather, mix of city and highway driving and others can effect fuel mileage and that is why people always give a range of mileage. But there is one variable that you don't hear talked about much and that is the BTU content of gasoline.

Most people think that all gasoline is the same. But that just isn't the case. Gasoline varies quite a bit in it's BTU content.

According to the EPA summer gasoline varies from 113,000 BTU per gallon to 117,000 BTU per gallon. That is a difference of 3.4%. Winter gasoline varies from 108,500 BTU to 114,000 BTU. That is a difference of 4.8%.

Unlike gasoline which is mixture of many different hydrocarbons, ethanol is a consistent product. It has a BTU content of 76,100 BTU per gallon. That considerably less than gasoline but the difference between gasoline and gasoline blended with 10% ethanol is generally around 3.5% less BTU. Generally you would expect fuel mileage to mirror the BTU content of fuel.

Since we know that adding 10% ethanol to gasoline raises it's octane level by about 2 points we know that if we are comparing 87 octane unleaded with 87 octane E10 that the base fuel is different. To get 87 octane E10 the fuel supplier would have started with a base fuel that had 85 octane.

So the question is how much of the fuel mileage loss was due to ethanol's lower BTU content and differences in the base gasoline's BTU content?

As I have always said there are variables that the average user cannot control when trying to compare the fuel mileage of one fuel to another. That is why I put more faith in formal studies and less in user testimonials. Formal studies attempt to control as many variables as possible. Studies generally buy ethanol and gasoline separate and blend their own so there is no difference in the base gasoline BTU content. And the formal studies like this one from the state of California have consistently shown between a 1% and 3.5% loss in fuel mileage.

Fleet average fuel consumption increased by 1.4% when ethanol content was increased from the zero to the high level.


And as far as your cars having less power on ethanol. If you are experiencing a decrease in power on ethanol you should have your car looked at by a qualified mechanic. Any fuel that contains oxygen such as ethanol, methanol, nitromethane, and others should result in increased power.

Is The Underwriters Laboratory Biased Against Ethanol?

That is the question being asked by the American Coalition for Ethanol (ACE) in a recent letter from Ron Lamberty, ACE’s Vice President / Market Development, to August Schaefer, UL’s Senior Vice President & Chief Operating Officer.

The Underwriters Laboratory (UL) has made a couple of moves in the last few years that seem to support such a claim. On October 5, 2006 they suspended certification of E85 dispenser even though no safety issues had been reported.

After studying the problem for about a year they issued new requirements on October 16, 2007 for E85 dispensers and began accepting applications for approval. To date no E85 dispenser has received approval. One can only wonder how the lack of UL certified dispensers has slowed the spread of E85 refueling locations but it is fairly well known that Walmart was considering adding pumps at their 300 plus gas stations before certification was pulled.

Now just as the ethanol industry is pushing for ethanol blends higher than 10% to be made legal for use in non flex fuel vehicles, the UL has issued a release saying that current dispensers are only certified for up to 10% ethanol content. This is somewhat odd because a look around their website shows that previously their position had been that dispensers can handle up to 15% ethanol content. Just look at this quote from when they suspended certification on E85 dispensers.

On Oct. 5, 2006, Underwriters Laboratories Inc. (UL) suspended authorization for manufacturers to use UL Markings (Listing or Recognition) on components for fuel-dispensing devices that specifically reference compatibility with alcohol-blended fuels that contain greater than 15 percent alcohol (i.e., ethanol, methanol or other alcohols).

To make matters even worse the UL had this to say in their release.

If new Federal guidelines are established that approve higher ethanol blend levels for public use, UL will review products currently certified under UL 87 to determine whether UL can provide data enabling the authorities having jurisdiction to approve such use.

In other words once the limit is increased we can expect a similar delay in getting new dispensers certified as we have seen with the process the E85 dispensers have gone through. It almost looks like they are trying to slow ethanol's progress.

I have to admit that I have also wondered about the their impartiality because of these things and one other event involving biodiesel. Recently the UL released a statement that B5 biodiesel blends could be used in equipment certified for use with diesel or home heating oil. They really didn't have much of a choice since B5 meets the exact same ASTM specification. To say that B5 couldn't be used under their certification would be to say that the equipment wasn't certified for use with a fuel that it was certified for. So instead they took the opportunity to point out potential issues which they admit are outside of the scope of their standards.

The findings indicated no adverse safety effects. It is acknowledged however that introduction of biodiesel may potentially affect fuel quality, mobilize contaminants in the fuel system, or increase the potential for microbial contamination. These performance issues are outside of the scope of UL standards and certification.

Unless I am reading the signs wrong it looks like The UL has a bias against not only ethanol but biodiesel as well.

February 06, 2009

VeraSun Energy Obtains Bid from Valero For Five Facilities

VeraSun Energy Corporation today announced that the Company filed a Bid Procedures and Sale Motion in the United States Bankruptcy Court for the District of Delaware seeking authority to sell substantially all of the assets of VeraSun Energy Corporation and 24 of its affiliates through a court-approved sale process.

As part of the sales process, the Company has signed an agreement with Valero Energy Corporation to sell substantially all of its assets relating to the VeraSun production facilities in Aurora, South Dakota; Charles City, Fort Dodge, and Hartley, Iowa; and Welcome, Minnesota; and a development site in Reynolds, Indiana. The Valero purchase agreement provides for a purchase price of $280 million, plus the value of inventory and certain pre-paid expenses, subject to certain customary adjustments. Having entered into the Valero agreement, the Company is now required to hold an auction to determine if other bidders will offer more favorable terms than Valero’s bid, referred to as a “stalking horse” bid.

Under the proposed Bid Procedures, the Company is seeking to sell all of its production facilities and operations in separate or combined transactions. While the Company has received expressions of interest with respect to assets other than those that are the subject of the proposed Valero transaction, the Company has not yet negotiated a definitive agreement to sell any other facilities.

“Given current difficult industry conditions and continued constrained credit markets, we believe that commencing a sale process is in the best interest of Company stakeholders,” said Don Endres, VeraSun’s Chief Executive Officer.

Through the sale process, the Company is offering for sale substantially all of its assets, which may be generally characterized as four distinct operating groups:

• The “VSE Group” consisting of production facilities subject to the Valero bid.

• The “US BioEnergy Group” consisting of production facilities in Central City and Ord, Nebraska; Albert City and Dyersville, Iowa; Hankinson, North Dakota; Janesville, Minnesota, and Woodbury, Michigan.

• The “ASA Group” consisting of production facilities in Albion, Nebraska, Bloomingburg, Ohio, and Linden, Indiana.

• The “Marion Group” consists of the production facility in Marion, South Dakota.

The Company believes it has sufficient liquidity to maintain its production facilities and workforce through the anticipated conclusion of the sale process.

“We continue to be optimistic about the long-term viability of the renewable fuels industry,” added Endres. “Ethanol is a valuable, clean, high-octane, low-carbon fuel that is reducing America’s reliance on foreign oil, creating jobs and stimulating the economy.”

Pursuant to the proposed Bid Procedures, interested bidders must submit qualifying bids by March 13, 2009. If qualifying bids are received, the Company would conduct an auction on March 16, 2009 and, following Bankruptcy Court approval at a sale hearing, expect to complete the asset sales by March 31, 2009, or early in the second quarter, subject to regulatory and other customary closing conditions. The initial hearing for approval of the proposed Bid Procedures is scheduled for February 19, 2009 at 9 a.m. in Wilmington, Delaware.

Rothschild, Inc. is serving as VeraSun’s financial advisor on the transaction and will be managing the sale process. Credit Suisse is acting as exclusive financial advisor to Valero Energy Corporation.

VeraSun and 24 of its subsidiaries filed petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Wilmington, Delaware on October 31, 2008. The chapter 11 cases are being jointly administered under Case No. 08-12606 (BLS). For more information, please visit www.verasun.com.

Source : VeraSun Press Release

February 04, 2009

Kinder Morgan To Transport Biodiesel By Pipeline

Kinder Morgan Energy Partners said Wednesday it expects to move fuels blended with five percent biodiesel across the South in the Plantation oil products pipeline this year.

The company, one of the largest pipeline companies in the United States, recently moved 20,000 barrels of the blended fuel via a Mississippi-to-South Carolina segment of the line in a test it called a success.

The Plantation line moves oil products from refineries along the Gulf of Mexico to the Southeast. Kinder expects to move the blends, known as B5, to markets in Alabama, Georgia, the Carolinas, and Virginia.

Source : Reuters

Wesley Clark To Join Growth Energy

The Politico is reporting that retired General Wesley Clark will be announced as the co-chair of the ethanol industry group Growth Energy at a press conference to be held tomorrow.

Source : Politico

Growth Energy press release on the announcement.

Underwriters Laboratories Announces Position on Use of B5 Biodiesel Blends

Underwriters Laboratories Inc. (UL) is announcing that products intended to use biodiesel blends up to B5 that are compliant with applicable ASTM International fuel standards will not require special investigation by UL. This is consistent with ASTM standards for heating oil and diesel fuel, which were recently updated to indicate that B5 blends may be considered the same as the conventional petroleum fuels under their scope.

In anticipation of the changes to the ASTM fuel standards, UL initiated a technical review of biodiesel fuel and technologies working closely with US Department of Energy, National Renewable Energy Laboratory, Brookhaven National Laboratory, Oak Ridge National Laboratory, and the National Biodiesel Board. UL also conducted performance testing of heating equipment using B5.

The findings indicated no adverse safety effects. It is acknowledged however that introduction of biodiesel may potentially affect fuel quality, mobilize contaminants in the fuel system, or increase the potential for microbial contamination. These performance issues are outside of the scope of UL standards and certification. Manufacturer instructions for use and maintenance of equipment should always be followed.

Use of biodiesel at levels above 5% may have a significant effect on materials, performance or combustion of some equipment. UL is in the process of finalizing product safety requirements for equipment specified for use with biodiesel (B100) and biodiesel blends up to B20.

UL is an independent, not-for-profit product safety certification organization. We remain committed to promoting safe living and working environments through the development of effective safety standards, product investigations and ongoing safety-based audits of products that bear the UL Mark. UL remains independent in this mission and does not endorse, recommend or favor one product over another.

Source : Underwriters Laboratories

This means that UL certified fuel pumps for dispensing diesel fuel and home heating oil and furnaces using home heating oil do not need additional certification for use with biodiesel blends up to B5.

February 03, 2009

Upcoming University Of Minnesota Study Critical Of Corn Ethanol

University Of Minnesota researcher Jason Hill is set to release a study comparing the human health effects of corn ethanol, cellulosic ethanol, and gasoline.

The study is the first to estimate the economic costs to human health and well-being from gasoline, corn-based ethanol and cellulosic ethanol made from biomass. The authors found that depending on the materials and technology used in production, cellulosic ethanol's environmental and health costs are less than half the costs of gasoline, while corn-based ethanol's costs range from roughly equal to about double that of gasoline.

The study will be published in the journal Proceedings of the National Academy of Sciences in February and will be posted online next week. At the moment the only information is from a press release.

The one thing that doesn't make sense from the information provided is this.

The study finds that cellulosic ethanol has fewer negative effects on human health because it emits smaller amounts of fine particulate matter, an especially harmful component of air pollution.

Since the chemical makeup of ethanol is the same regardless of the feedstock used to produce it, corn based ethanol should produce the same amounts of fine particulate matter as cellulosic ethanol. So the evidence against corn ethanol must be it's environmental costs.

David Tilman is credited in the release as being a contributer to the paper. Tilman and Hill were both authors on the Science Magazine study last year that concluded that depending on how biofuels are produced they could emit 17 to 420 times the amount of green house gases as gasoline. But Tilman clarified the results of that study in a later interview.

Tilman, who is currently on sabbatical from the University, said he feels the study is misunderstood by others in the industry.

"The goal of our paper was to point out if we do certain things, that those things would give us fuels that didn't have very much environmental benefit," he said.

Tilman said the paper didn't say the problems were happening now, but instead that they could happen in the future.

So unless I am mistaken they are taking results that could happen in the future and presenting them as if they were occurring now as evidence against corn ethanol.

Source : University of Minnesota Press Release

February 02, 2009

Global wind energy capacity grew by 28.8% in 2008

That is the conclusion of a new report from the Global Wind Energy Council, that global wind capacity grew by 28.8% last year. Global wind capacity reached 120.8 GW by the end of last year. Over 27 GW of new wind power generation capacity came online in 2008, 36% more than in 2007.

The report also notes that the United States has officially passed Germany to become the leader in wind power installations. It also notes the impressive growth wind power has seen in this country last year and the new jobs it has created.

The massive growth in the US wind market in 2008 increased the nation’s total wind power generating capacity by 50%. The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added in the US last year, and created 35,000 new jobs, for a total of 85,000 employed in the sector in the US.

Source : Global Wind Energy Council

Iowa E10 Sales Reach 75 Percent of Gasoline Market in 2008

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today announced that Iowans chose E10, a 10 percent ethanol and 90 percent gasoline blend, 75 percent of the time in 2008. While this was slightly higher than 2007, it was the same level as 2005. With a typical savings at the pump of 10 to 13 cents per gallon, Iowa consumers saved between $120 and $155 million with E10 during 2008.

“This is a good news, bad news report,” said Monte Shaw, IRFA Executive Director. “On one hand, we matched the all-time high of 75% E10 sales first set in 2005. On the other hand, in 2005 Iowa was one of the leaders in ethanol use, but in 2008 the same percentage is likely below the national average. The rest of the country has rapidly surpassed us. As the leading ethanol producer, Iowa should not be satisfied with being below average in ethanol use. When you consider that Iowans saved up to $155 million with ethanol in 2008, we have to take steps to increase use, thereby saving consumers even more.”

According to the Iowa Department of Revenue (IDR), in 2008 Iowans purchased:

Type            Gallons       Percentage of Iowa Gasoline SalesE0 Gasoline        397,245,643                  25.0%E10              1,193,833,838                  75.0%

Previous E10 Usage in Iowa

2008 75.0%
2007 73.9%
2006 69.3%
2005 75.0%

* Note: These figures do not reflect E85 sales, which are reported separately and at a later date by the IDR.

Iowa is the leader in renewable fuels production. Iowa has 38 operational ethanol refineries with a combined annual capacity of over 3 billion gallons. There are 5 ethanol refineries under construction that will add nearly 700 million gallons of capacity. In addition, Iowa has 14 biodiesel refineries with the capacity to produce over 317 million gallons annually. Two biodiesel refineries under construction or expansion will add 35 million gallons of annual capacity. Additional renewable fuels projects are under development.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

Source : Iowa Renewable Fuels Association

February 01, 2009

E85 Stations Continue To Rise, Reaching 1927

The number of E85 across American continues to rise. For the month of January there were 28 new locations added bringing the total to 1927.

February 1, 2009 - 1927
January 1, 2009 - 1899
December 1, 2008 - 1868
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.