Ethanols Effects On Classic Cars Fuel Systems

Almost a year ago, I reported that the Hagerty Insurance Agency had enlisted Kettering University to study the effects of ethanol blended gasoline on the fuel systems of classic cars and boats. The study attempted to simulate 3000 hours of use in a manner that would duplicate a typical classic vehicle's use cycle.

The preliminary results were released in the Spring 2009 issue of Hagerty’s Magazine.

After several months and a full 3,000 hours of testing, the Hagerty study found that there was no difference between the performance of the SU carburetors (from a 1962 MGA) running E10 and the ones flowing E0 (gasoline without ethanol). The carburetor jets were unobstructed, the needle valves and floats were functioning properly and the throttle shafts were moving freely. Both fuel pumps continued to put out more than 3psi and were flowing fuel at an acceptable rate — regardless of the fuel.

The preliminary results seem promising but it should be noted that only the results from studying one vehicle's fuel system have been released to date. The results from the other five vehicles being studied will be released in a future addition of Hagerty’s Magazine.

Spring 2009 Issue of Hagerty’s Magazine (PDF)

May Ethanol Production Hits New High

Ethanol production hit a new high in May with over 871 million gallons produced. Imports and consumption numbers were also higher. Daily production volume reached 669,000 barrels per day.

Ethanol Production Numbers in Gallons
	Production	Imports	Stocks	Consumption
May 2009	871,584,000	21,168,000	587,958,000	928,284,000
April 2009	807,240,000	7,014,000	623,490,000	848,148,000
March 2009	833,154,000	3,276,000	657,384,000	837,942,000
February 2009	761,040,000	2,142,000	658,896,000	700,098,000
January 2009	820,890,000	15,582,000	595,812,000	837,858,000
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

Source: - Energy Information Administration

Valero says all 7 ethanol plants at capacity

Top U.S. oil refiner Valero Energy Corp said all seven of the ethanol plants it bought in March from a bankrupt producer were now running at capacity and making money.

"Ethanol is kind of a bright spot for us right now. They are generating cash flow," Valero spokesman Bill Day said of the plants, which have the combined capacity of about 780 million gallons a year, or about 7.5 percent of the total U.S. operating capacity to make the fuel.

Valero began production at the 110-million-gallon-per-year ethanol plant in Welcome, Minnesota, during the first week of July, Day said by telephone.

The company bought the plants from VeraSun Energy, which filed for bankruptcy protection after locking in pricey contracts for corn, the main input cost for making ethanol.

Source : Reuters India

Ethanol's lack of compatibility over stated.

Gasoline is not a single substance. It is a complex mixture of components which vary widely in their physical and chemical properties. There is no such thing as pure gasoline. Gasoline must cover a wide range of operating conditions, such as variations in fuel systems, engine temperatures, fuel pumps and fuel pressure. It must also cover a variety of climates, altitudes, and driving patterns. The properties of gasoline must be balanced to give satisfactory engine performance over an extremely wide range of circumstances. In some respects, the prevailing quality standards represent compromises, so that all the numerous performance requirements may be satisfied.

Auto manufacturers have, for many years, used materials that are compatible with oxygenated fuels. However, with the widespread use of oxygenated fuels and reformulated gasoline, certain myths have resurfaced, so they warrant mention here. In earlier versions of this manual this topic was covered in greater detail, including photographs from various tests and applicable service bulletins.

The information presented was segmented into two categories, metals and elastomers.

Most metal components in automobile fuel systems will corrode or rust in the presence of water, air or acidic compounds. The gasoline distribution system usually contains water, and additional moisture may collect in the automobile tank from condensation. Gasoline may also contain traces of sulfur and organic acids. Gasoline has always been recognized as potentially corrosive. Pipelines which distribute gasoline routinely require that corrosion inhibitors be contained in gasoline to protect their plain steel pipe. Therefore, corrosion inhibitors have been routinely added to gasoline for many years.

Alcohols are more soluble in water than MTBE. The addition of ethanol will increase a gasoline’s ability to hold water. Therefore, an ethanol enhanced gasoline may have a slightly higher moisture content than non-blended gasoline. Several tests have been reported on ethanol enhanced gasolines. Vehicle fuel tanks and fuel system components from autos operated for extended periods on these blends were removed, cut open, and examined. These tests have generally concluded that ethanol does not increase corrosion in normal, everyday operation.

Auto manufacturers have indicated they do not have major concerns about metal corrosion, provided that all fuels contain effective corrosion inhibitors at the proper treatment levels. Responsible ethanol producers recognize that not all commercial gasolines are adequately treated for blending, and have, for some time, included a corrosion inhibitor in their ethanol.

Elastomer compatibility is more difficult to generalize. A number of gasoline ingredients can have an effect on elastomer swelling and deterioration. For instance, aromatics, such as benzene, toluene, and xylene, have been shown to have detrimental effects on some fuel system elastomers. Gasolines sold today have a higher level of aromatics than those sold in the 1970s.

The addition of alcohols or ethers to gasoline can also cause swelling in fuel system elastomers. Swelling can be severe with methanol, but relatively insignificant with other alcohols. Ten volume percent ethanol contributes less swelling than the amount of additional aromatics needed to obtain the same increase in octane number. The combination of ethanol or MTBE with high aromatic levels may cause greater swelling than either product by itself.

Automobile and parts manufacturers have been responsive to the changes occurring in today’s gasoline. Materials problems are less likely to occur with newer vehicles because of the upgrading of fuel system materials that has occurred since the introduction of higher aromatic unleaded gasolines and the addition of alcohols and ethers. All major automobile manufacturers have indicated that their late model vehicles are equipped with fuel system components upgraded for use with these fuels.

While all auto manufacturers warrant the use of 10 percent ethanol blends or gasoline containing MTBE. Fuel systems in 1975 to 1980 model years were
upgraded, but not to the same extent as later models. Pre- 1975 models may have fuel system components that are sensitive to high aromatic gasolines, alcohols and ethers. Specific documentation of the effect fuel components have on older fuel system parts is often lacking.

Technicians who find themselves replacing parts on pre-1980 vehicles should specify that replacement parts be resistant to such fuel components. These products include Viton® (EGR valves, fuel inlet needle tips) and fluoro elastomers (fuel lines, evaporative control lines, etc.)


It is interesting to note that many of the aromatic components of gasoline such as benzene, toluene, and xylene do not fare very well on chemical compatibility charts with common elastomers used in modern day engines. However, many of the same elastomer components show a good to excellent rating in the presence of ethanol.

I have provided a link to a chemical compatibility chart so you too can see how ethanol and other components of aromatic gasolines fares in the presence of elastomers.

I have also provided a link to Changes in Gasoline III, The Auto Technicians Gasoline Quality Guide. Changes in Gasoline III is the latest in the ongoing series of Changes in Gasoline manuals. The first manual, entitled Changes in Gasoline & the Automobile Service Technician, was originally published in 1987. Over a four year period it was periodically updated to focus on fuel related areas of greatest interest to automobile service technicians. The first version of the manual achieved a circulation of 345,000 copies.

This is by far the most comprehensive guide that I have even seen concerning common components of gasoline and it effects on use in new and older model vehicles.

There is also a great deal of information on use in small engines including outboard motors. This manual is a must read for the automobile and small engine techicians.

Chemical compatibility chart
Changes in Gasoline IV

Corn Ethanol blamed for Gulf Dead Zones?

In recent years, there has been great uncertainty regarding the cause of the hypoxic zone (low oxygen) in the northern Gulf of Mexico. This has often been the result of a lack of data to support many of the prevailing theories regarding the size, duration and source of the problem. This paper looks at the available information and draws thefollowing conclusions.

First, the hypoxic zone is seasonal. While localized effects can be severe, vast “dead zones” with widespread negative effects on the fishing industry may be overstated. On the contrary, it is possible that the water flow from the Mississippi-Atchafalaya River Basin (MARB) delivers the basic nutrients required for the very existence of the northern Gulf fishing industry.

Second, fishing data since 1985 shows no negative impact nor any clear relationship between the fish catch, the flow of water through the MARB or the size of the seasonal hypoxic zone.

Third, there is also no clear evidence of a relationship between nitrogen and the size of the seasonal hypoxic zone. In recent years, as corn production has become more efficient and yields have increased, the nitrogen removed from corn fields in the grain may equal or exceed the amount of nitrogen applied in the fertilizer.

While many conclude that corn ethanol is the real reason for the large Gulf Dead Zones, a closer look shows that this is just not true.

There are several sources of nitrogen that contribute to algae growth in the Gulf.

1) Natural sources such as fixation, soil, etc.
2) Agricultural sources such as fertilizer application
3) Industrial sources such as waste water treatment
4) Municipal sources such as sewage, golf courses, and run‐off from lawns, etc.

There has been considerable finger‐pointing at agriculture as the source of N and, in particular, at corn because the total N application is relatively high.

We explored this further to determine the net N balance in relation to corn: our hypothesis was that since corn yield has increased considerably over the years then the nitrogen removed in the grain will have increased, thereby, resulting in a large increase in nitrogen use efficiency in corn.

It should be noted that between 1970 and 1980 the N removed was just over 50% of
the applied N. However, as yields corn increased without a corresponding increase in applied N, the ratio gradually improved until, for 2007, the N amount removed in the grain is about equal to the N amount applied.

Therefore, under present day cultural practices, the net balance for N applied and N removed in corn is such that there is no excess N available due to fertilizer use. The conclusion then is that any change in N entering the Gulf via the MARB, over time, is probably not related to the use of fertilizer N for corn.

Other possible sources.

The amount of N flowing through the MARB that originates from sewage has likely increased by a considerable amount. While difficult to calculate the exact number, we can assume that N output per person is relatively constant, while the population within the Mississippi watershed increased by 22% between 1970 and 2000.

Another source that is linked to population and the expansion of homes is that from the N applied to lawns.

The estimated area for lawns, which includes golf courses and other commercial grass areas, in 2005, was ~64K sq miles = 41 MM acres across the U.S. We estimate that 60% of the area falls within the Mississippi watershed, which would be 24.6 MM acres of lawns.

The typical recommendation for lawns works out to be 130 lb N/acre/season.
Therefore, the amount of N applied to lawns within the Mississippi watershed is 3.2 billion lbs, or 1.6 MM tons N per year.

Since most lawns are cut and mulched there is relatively little removal of N, unlike the grain in corn. Consequently, a major portion of the N applied to lawns may be available for leaching. While the total amount of N applied to lawns is approx 25% of the total N applied to corn, the net N available for leaching per acre is almost infinitely higher for lawns than from corn.

Complete study with charts

President Obama Announces Over $467 Million in Recovery Act Funding for Geothermal and Solar Energy Projects

WASHINGTON – President Obama today announced over $467 million from the American Reinvestment and Recovery Act to expand and accelerate the development, deployment, and use of geothermal and solar energy throughout the United States. The funding announced today represents a substantial down payment that will help the solar and geothermal industries overcome technical barriers, demonstrate new technologies, and provide support for clean energy jobs for years to come. Today’s announcement supports the Obama Administration’s strategy to increase American economic competiveness, while supporting jobs and moving toward a clean energy economy.

“We have a choice. We can remain the world’s leading importer of oil, or we can become the world’s leading exporter of clean energy,” said President Obama. “We can hand over the jobs of the future to our competitors, or we can confront what they have already recognized as the great opportunity of our time: the nation that leads the world in creating new sources of clean energy will be the nation that leads the 21st century global economy. That’s the nation I want America to be.”

"We have an ambitious agenda to put millions of people to work by investing in clean energy technology like solar and geothermal energy,” Energy Secretary Steven Chu said. "These technologies represent two pieces of a broad energy portfolio that will help us aggressively fight climate change and renew our position as a global leader in clean energy jobs.”

Geothermal Energy
Geothermal energy is a clean source of renewable energy that harnesses heat from the Earth for heating applications and electricity generation; geothermal plants can operate around the clock to provide significant uninterrupted “base load” electricity, or the minimum amount a power utility must provide to its customers.

The Recovery Act makes a $350 million new investment in this technology, dwarfing previous government commitments. Recovery Act funding will support projects in four crucial areas: geothermal demonstration projects; Enhanced Geothermal Systems (EGS) research and development; innovative exploration techniques; and a National Geothermal Data System, Resource Assessment and Classification System.

* Geothermal Demonstration Projects ($140 Million)
Funding will support demonstrations of cutting-edge technologies to advance geothermal energy in new geographic areas, as well as geothermal energy production from oil and natural gas fields, geopressured fields, and low to moderate temperature geothermal resources.
* Enhanced Geothermal Systems Technology Research and Development ($80 Million)
Funding will support research of EGS technology to allow geothermal power generation across the country. Conventional geothermal energy systems must be located near easily-accessible geothermal water resources, limiting its nationwide use. EGS makes use of available heat resources through engineered reservoirs, which can then be tapped to produce electricity. While the long-term goal of EGS is to generate cost competitive clean electricity, enabling research and development is needed to demonstrate the technology’s readiness in the near-term.
* Innovative Exploration Techniques ($100 Million)
Funding will support projects that include exploration, siting, drilling, and characterization of a series of exploration wells utilizing innovative exploration techniques. Exploration of geothermal energy resources can carry a high upfront risk. By investing in and validating innovative exploration technologies and methods, DOE can help reduce the level of upfront risk for the private sector, allowing for increased investment and discovery of new geothermal resources.
* National Geothermal Data System, Resource Assessment, and Classification System ($30 Million)
The long-term success of geothermal energy technologies depends upon a detailed characterization of geothermal energy resources nationwide. In 2008, the United States Geological Survey (USGS) conducted an assessment of high temperature resource potential in the Western United States. To fully leverage new low-temperature, geopressured, co-production, and EGS technologies, DOE will support a nationwide assessment of geothermal resources, working through the USGS and other partners. Second, DOE will support the development of a nationwide data system to make resource data available to academia, researchers, and the private sector. Finally, DOE will support the development of a geothermal resource classification system for use in determining site potential.

Solar Energy
Solar energy is a rapidly expanding industry with a double-digit annual growth rate in the United States. DOE is focused on supporting the U.S. industry’s scaling up of manufacturing, production, and distribution so the technology can become cost competitive with conventional sources of energy. DOE will provide $117.6 million in Recovery Act funding to accelerate widespread commercialization of clean solar energy technologies across America. These activities will leverage partnerships that include DOE’s national laboratories, universities, local government, and the private sector, to strengthen the U.S. solar industry and make it a leader in international markets.

* Photovoltaic Technology Development ($51.5 Million)
DOE will expand investment in advanced photovoltaic concepts and high impact technologies, with the aim of making solar energy cost-competitive with conventional sources of electricity and to strengthen the competitiveness and capabilities of domestic manufacturers.
* Solar Energy Deployment ($40.5 Million)
Projects in this area will focus on non-technical barriers to solar energy deployment, including grid connection, market barriers to solar energy adoption in cities, and the shortage of trained solar energy installers. Combined with new technology development, these deployment activities will help clear the path for wider adoption of solar energy in residential, commercial, and municipal environments.
* Concentrating Solar Power Research and Development ($25.6 Million)
This work will focus on improving the reliability of concentrating solar power technologies and enhancing the capabilities of DOE National Laboratories to provide test and evaluation support to the solar industry.

Department of Energy Press Release

February Biodiesel Production Rises

February biodiesel production rose by just over 2 million gallons over January numbers.

February 2009 - 35,528,366 gallons
January 2009 - 33,394,510 gallons
December 2008 - 48,584,837 gallons
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 Ethanol Production Higher

The total amount of ethanol produced during February was down from the total from January due to the fact that February had 3 fewer days. The daily production volume increased from 630,000 barrels per day in January to 647,000 barrels per day in February.

Ethanol Production Numbers in Gallons
	Production	Imports	Stocks	Consumption
February 2009	761,040,000	2,142,000	658,896,000	700,098,000
January 2009	820,890,000	15,582,000	595,812,000	837,858,000
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

Source: - Energy Information Administration

E85 Stations Finish April At 1991

One new E85 station was added during the month of April bringing the total to 1991. This is the lowest amount added for any one month since I started keeping track. Hopefully now that better weather is here more will be added in the near future.

May 1, 2009 - 1991
April 1 2009 - 1990
March 1, 2009 - 1969
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.

Panda sells Hereford ethanol plant

Panda Ethanol's Hereford facility which filed for bankruptcy in January, has been sold for $25 million to it's creditors. The plant is in the final stages of construction.

The U.S. Bankruptcy Court for the Northern District of Texas-Dallas Division finalized the sale of the plant to senior lenders of the company for $25 million in credit.

The sale price represents about 12% of the cost to construct the plant.

Source : Amarillo.com

American Coalition For Ethanol's E15 Petition

The American Coalition for Ethanol (ACE) has set up an online petition to show support for raising the ethanol content in gasoline to 15%.

A waiver is being considered at the U.S. EPA to allow up to 15 percent ethanol per gallon of gasoline, raising the now 30-year-old limit on having only 10 percent ethanol per gallon. ACE wants to gather as many signatures as possible to demonstrate to Congress, the White House, EPA, and the media that Americans want more ethanol.

Please help demonstrate America's grassroots support for ethanol by signing the petition today.

E15 Petition

Producing Ethanol And Cleaning Waste With Duckweed

Researchers at North Carolina State University have found that a tiny aquatic plant can be used to clean up animal waste at industrial hog farms and potentially be part of the answer for the global energy crisis. Their research shows that growing duckweed on hog wastewater can produce five to six times more starch per acre than corn, according to researcher Dr. Jay Cheng. This means that ethanol production using duckweed could be "faster and cheaper than from corn," says fellow researcher Dr. Anne-Marie Stomp.

"We can kill two birds – biofuel production and wastewater treatment – with one stone – duckweed," Cheng says. Starch from duckweed can be readily converted into ethanol using the same facilities currently used for corn, Cheng adds.

Large-scale hog farms manage their animal waste by storing it in large "lagoons" for biological treatment. Duckweed utilizes the nutrients in the wastewater for growth, thus capturing these nutrients and preventing their release into the environment. In other words, Cheng says, "Duckweed could be an environmentally friendly, economically viable feedstock for ethanol."

Source : NCSU Press Release

Congressional Budget Office Studies Ethanol's Contribution To Last Years Food Price Increases

The Congressional Budget Office has just released a report on ethanol's contribution to last years food price increases.

CBO estimates that from April 2007 to April 2008, the rise in the price of corn resulting from expanded production of ethanol contributed between 0.5 and 0.8 percentage points of the 5.1 percent increase in food prices measured by the consumer price index (CPI). Over the same period, certain other factors—for example, higher energy costs—had a greater effect on food prices than did the use of ethanol as a motor fuel.

So they concluded that ethanol was responsible for 10 to 15 percent of the overall increase in food prices during the period studied. The other 85 to 90 percent of the overall increase came from other factors, such as increased energy costs, the strength of the dollar and increases global consumption of meat.

Source : The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions (PDF)

January Biodiesel Production Falls Sharply

January biodiesel production fell sharply to about 33.4 million gallons, the lowest monthly total since April 2007.

January 2009 - 33,394,510 gallons
December 2008 - 48,584,837 gallons
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

Senators Harkin, Thune, Johnson Introduce Legislation To Promote Biofuel Pipelines

April 3rd, 2009 - Washington, D.C. - U.S. Senators Tom Harkin (D-IA), John Thune (R-SD) and Tim Johnson (D-SD) today introduced legislation that authorizes loan guarantees for the construction of renewable fuel pipeline projects. While the Midwest and Plains states produce the majority of the biofuels in the United States, the nation is currently lacking the infrastructure to efficiently transport these liquid fuels to population centers in the East and elsewhere. This bill will address this issue by encouraging the construction and use of pipelines which can easily transport these fuels in a clean, safe and cost efficient manner.

"We must seize control of our energy future and take major steps towards the use of clean, renewable home-grown sources of energy," said Harkin. "Promoting the planning and development of projects that transport renewable fuels efficiently and inexpensively helps enlarge the market for biofuels like ethanol, reduces our dependence on foreign fuels and will provide good construction jobs."

"Pipelines are the safest, most reliable, and cost effective way to move biofuels from the areas they are produced to the markets where they are consumed," said Thune. "These pipelines will reduce energy costs across the country as well as create an estimated 25 jobs for every $1 million of construction. Access to ethanol-dedicated pipelines will benefit both consumers and the ethanol industry for years to come."

"Many experts believe that a pipeline network to transport biofuels is necessary to achieve the aggressive renewable fuel requirements. But limited transportation options of truck, rail and barge will only get us so far. Pipelines are necessary to get this fuel moving to where the people are. These loan guarantees will spur pipeline development and help create new jobs and lower our dependence on foreign sources of energy," said Johnson.

When compared to other forms of biofuel transportation, pipelines have the lowest energy input requirements and produce the least amount of carbon emissions. In fact, pipelines produce 30 percent less emissions than railcars and 87 percent less than trucks. Pipeline transport of biofuels is also safer than using trucks or trains. In addition to these efficiency and safety advantages, it is estimated that the construction projects related to the renewable fuel pipelines will create up to 25,000 jobs nationally.

January Ethanol Production Drops

January ethanol production dropped to just over 820 million gallons, the lowest level since September of last year.

Ethanol Production Numbers in Gallons
	Production	Imports	Stocks	Consumption
January 2009	820,890,000	15,582,000	595,812,000	837,858,000
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

Source: - Energy Information Administration

E85 Stations Finish March At 1990

The number of E85 stations across the country continues to grow reaching 1990 by the end of March. For the month 21 new locations were added.

April 1 2009 - 1990
March 1, 2009 - 1969
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.

Corn Plus ethanol plant explores using city wastewater

Corn Plus is exploring the possibility of using treated wastewater from the city of Winnebago in it's ethanol plant.

The city of Winnebago discharges a minimum of about 350,000 gallons of treated wastewater into the Blue Earth River each day.

The ethanol plant just east of town uses up to 350,000 gallons of fresh groundwater daily to produce its fuel.

Ethanol plants have taken a lot of criticism lately for their water usage. This arrangement would help to divert some of that criticism and would be a new revenue source for the city of Winnebago.

Source : Mankato Free Press

Oregon State Researchers Using Algae To Produce Hydrogen

OSU researchers successfully got one type of cyanobacteria – more commonly known as blue-green algae – to live, grow and produce hydrogen while the cells were “encapsulated” in a solid state system, an important preliminary step to controlling this interaction of water, light and bacteria for practical use.

Significant progress still needs to be made in making the process more efficient and using light energy more effectively, but the advance demonstrates the feasibility of using these biological processes to produce hydrogen – which could be used directly as a fuel, or in hydrogen fuel cells to power the electric automobiles of the future.

The recent findings were published in the International Journal of Hydrogen Energy. Based on this and other progress, the U.S. Air Force Office of Scientific Research also recently awarded a grant of $938,000 to OSU, the University of Oregon and Indiana University to continue research.

Source : Oregon State Press Release

POET Chancellor Ethanol Plant Powered By Landfill Gas

Chancellor, S.D. and the city of Sioux Falls, S.D. have taken "green" to a new level with the completion of a landfill gas pipeline that is now providing methane gas to help power daily operations of the 105 million gallon per year (MGPY) POET ethanol plant.

The 10-mile, low-pressure pipeline from the Sioux Falls Regional Sanitary Landfill began supplying methane to the plant at the end of February, ahead of the expected completion date. The POET plant will utilize the landfill gas in a wood waste-fuel boiler to generate process steam. Combined, the two alternative energy sources will initially offset up to 90 percent of the plant’s process steam needs currently met using natural gas and has the potential to replace 90 percent of the plant’s total energy needs (combined with waste wood) over time.

The methane is produced when solid waste decomposes at the landfill. According to the Environmental Protection Agency, the annual environmental benefits from using this gas for power is equal to removing emissions from more than 27,000 passenger vehicles, removing carbon dioxide emissions from more than 344,000 barrels of oil or sequestering carbon with nearly 34,000 acres of pine or fir forests. Besides reducing greenhouse gasses, the partnership provides additional revenue to Sioux Falls and lowers energy costs at the Chancellor plant.

"At POET, we take a lot of pride in helping reduce the human impact on our environment," POET CEO Jeff Broin said. "Ethanol already cuts greenhouse gasses significantly compared to gasoline. This partnership makes that process even cleaner."

Sioux Falls Mayor Dave Munson said the new Methane Gas Compressor system provides a benefit for everyone in the area.

"Not only is this now allowing us to reuse the methane, but with POET as our customer we have added a revenue stream to the landfill which is going to keep rates low for the entire region," Munson said.

POET and the City of Sioux Falls are members of the U.S. Environmental Protection Agency’s Landfill Methane Outreach Program (LMOP). The program aims to reduce methane emissions from landfills by encouraging development of cost-effective and environmentally sound landfill gas projects.

Source : POET Press Release

Minnesota State Study : E20 No Harder On Engines Than Gasoline

The fruits, so far, of a $497,000 grant to Minnesota State University to study ethanol: A 20 percent blend appears to be no harder on vehicles than regular gasoline.

The study, led by Bruce Jones and Jim Rife in MSU’s automotive engineering technology department, has tested the effects of differ­ent blends of ethanol on the raw materials of a vehicle as well as fuel system parts.

Today all gas sold in Minnesota includes 10 per­cent ethanol. Some gas is 85 percent ethanol ( called E85). It’s the intermediate blends — between 10 per­cent and 85 percent — that MSU is studying.

It’s using regular vehi­cles, not the “flex fuel” mod­els specifically designed to run on high ethanol blends. Jones said research into the 20 percent blend has just been completed.

Tests on raw materials — the metals, plastics and rub­ber- like substances — found no problems with the E20 blend.

Likewise, fuel pumps using regular gasoline, E10 and E20 were run for 5,000 hours and there was no more wear and tear on the higher- ethanol blend.

The research is being done to support a Minnesota proposal to move to a 20 percent blend in all gasoline by 2012.

Source : Minnesota State

Kohler Introduces Industry’s First E85 Compatable Small Engine Line

Fuel efficient, cleaner burning engines will soon be the standard – not an option – on all KOHLER Command PRO® and Aegis® twin-cylinder engines.

Starting with its Command PRO 30 gasoline, twin-cylinder model in March, Kohler will introduce the first flex-fuel, electronic fuel injection(EFI) engine. Over the next two years, Kohler will convert its entire Command PRO air-cooled and Aegis liquid-cooled engines with this technology. And at a competitive price with traditional carbureted engines.

Kohler partnered with Delphi – a leading global supplier of mobile electronics and transportation systems – to design this new flex-fuel EFI system with patent-pending technology that will offer significant fuel savings, improved performance and reduced emissions.

KOHLER flex-fuel EFI models will be available on 26 twin-cylinder models ranging from 19-41 hp, and will operate efficiently and without excessive wear on the engine when E-85 or any other alternative fuel is used. An additional benefit of the new Kohler flex-fuel EFI engines is instant load response. The Kohler exclusive EFI system allows the engine to respond with peak Kohler performance even in changing altitudes and load requirements, which in turn, operates at top efficiency.

Kohler also designed this new line of engines within the same footprint as its current Command PRO and Aegis models, so that OEMs can easily drop in the newest Kohler engine without altering the end equipment design to accommodate the engine.

This is accommodated by Kohler’s exclusive self-contained EFI design, which features only one fuel line rather than an additional return fuel line with a special harness. The fuel module, electronic control unit and sensors are also all engine-mounted.

“Kohler introduces this new technology not only at a time when fuel prices are hitting all-time highs, but there’s also been movement of diesel-powered users looking more carefully at spark-ignited engines and what they can now bring to the table,” said Rich Koehl, director of marketing and quality, Kohler Engines. “Depending on the application, end users can realize a 17% to 28% fuel efficiency savings. And, Kohler will be within the EPA phase 3/CARB Tier 3 levels immediately, with extremely low levels of HC and NOx being produced. If the engines run on E-85, those emissions levels are reduced even further compared to operating with gasoline.”

Also true to Kohler Engines, the “closed-loop” system will continue to be a standard feature on these new engines. In most EFI engines, when an EFI engine is started, it operates in an “open loop” mode mapped by the electronic control unit (ECU). Only KOHLER EFI engines include an oxygen sensor that analyzes the air/fuel mixture in the exhaust. If the oxygen level strays from the ideal air/fuel mixture, the sensor triggers adjustments in the ECU map to adjust the amount of fuel injected into the system. Only KOHLER EFI engines then “close the loop” between the air/fuel intake and the exhaust output to provide a constant steam of critical feedback - and optimal power and fuel economy. The closed loop advantage also means that only KOHLER EFI engines automatically adapt to air cleaner conditions and altitude changes.

Kohler was the first small-engine manufacturer to introduce EFI with closed loop on its engines in the mid 1990s, featuring the EFI system as an option and just a few select air- and liquid-cooled models, which carried a higher price tag over its carbureted models. Since then, KOHLER has found a way to take the EFI technology – long used in the automotive industry – and integrate it among multiple horsepower levels at an extremely competitive price.

Source : Kohler

Update June 2010 : The above press release is no longer available on the Kohler website but according to this February 2010 press release the flex fuel option is still planned but won't be available until sometime later this year.

Flex fuel program forthcoming
In 2008, Kohler also announced plans to develop the industry’s first EFI engines with a flex-fuel option. According to Litt (Cam Litt, marketing manager), this alternate fuel option, such as E-85, could be available to OEMs some time in 2010, once the business has completed the EFI conversion across the entire Command PRO twin-cylinder line. Added Litt: “In the future, our KOHLER EFI engines will also be E-85 capable, meaning the engine will be more adaptable to varying fuel formulations.”

Landfill to build power plant run on methane gas

Waste Management Inc. plans to build Arkansas' second "gas-to-energy plant" near its Tontitown landfill.

The plant will convert methane gas to generate about 5 megawatts of electricity, which could power 5,000 homes, said George Wheatley, a spokesman for the Houston based company. Methane gas is created naturally as waste decays in landfills.

"It's green electricity," Wheatley said. "It moves your landfill from being just a landfill to being a component of renewable energy."

The Tontitown landfill should have an ample supply of methane to provide 5 megawatts of electricity for about 30 years, Wheatley said.

VeraSun Energy Selects Valero as Successful Bidder for Seven Facilities

VeraSun Energy Corp. today announced that it has selected Valero Renewable Fuels as the successful bidder for assets contained in the “VSE Group”, in addition to ethanol production facilities in Albion, Neb., and Albert City, Iowa, following an auction in Wilmington, Del. The secured lenders submitted successful credit bids for each of the remaining facilities.

The VSE Group consists of production facilities in Aurora, S.D.; Charles City, Fort Dodge and Hartley, Iowa, and Welcome, Minn., and a development site in Reynolds, Ind.

Upon the conclusion of the auction, VeraSun selected Valero as the successful bidder to purchase the VSE Group facilities for a base purchase price of $350 million, $72 million for the US Bio Energy facility in Albert City, Iowa and $55 million for the ASA facility in Albion, Neb., plus working capital and other certain adjustments.

The secured lenders for the remaining facilities submitted successful credit bids. Dougherty Funding, LLC submitted a credit bid of $93 million for the Marion, S.D. production facility. A group of lenders led by AgStar Financial Services submitted a credit bid of $324 million for the remaining “US BioEnergy Group”, which includes ethanol production facilities in Central City and Ord, Neb.; Dyersville, Iowa; Hankinson, N.D.; Janesville, Minn., and Woodbury, Mich. A group of lenders led by West LB AG submitted a credit bid of $99 million for the remaining “ASA Group” facilities, consisting of production facilities in Bloomingburg, Ohio and Linden, Ind.

VeraSun will seek approval of the successful bids at a sale hearing conducted by the US Bankruptcy Court on Wednesday, March 18, 2009 at noon. The sales are expected to close in April.

Source : VeraSun Press Release

POET And Magellan To Assess Dedicated Ethanol Pipeline

Magellan Midstream Partners, L.P. today announced that it has signed a joint development agreement with POET to continue assessing the feasibility of constructing a dedicated ethanol pipeline. The proposed ethanol pipeline system would safely and efficiently deliver ethanol from the Midwest to distribution terminals in the northeastern United States.

The proposed common carrier pipeline system would gather ethanol from production facilities in Iowa, South Dakota, Minnesota, Illinois, Indiana and Ohio to serve terminals in major Northeastern markets. The project, preliminarily estimated to cost in excess of $3.5 billion, would span approximately 1,700 miles and would take several years to complete.

Although there are many hurdles to overcome to make this ethanol pipeline project a reality, Magellan and POET are optimistic that the obvious need for a pipeline to deliver ethanol from the Midwest to distribution terminals in the northeastern United States may lead to a viable and successful project. A positive assessment will allow one or both partners to enter into a subsequent agreement to construct a dedicated ethanol pipeline.

Source : POET Press Release

Sapphire Energy Algae to Fuel Demonstration Project Receives Funding

The omnibus appropriations bill President Obama signed into law last week contained $951,000 for the Sapphire Energy Algae to Fuel Demonstration Project.

Sapphire Energy Algae to Fuel Demonstration Project - $951,000

This funding establishes a demonstration project in Portales, New Mexico, to create and grow a fuel-producing algae using technology that genetically enhances algal organisms. It is estimated that 100 local jobs will be created from this funding and could help in significantly reducing our nation’s dependence on fossil fuels.

Source : Senator Tom Udall Press Release

Ethanol Fact Check Needed In The Bird Seed Aisle

This is another post about how the media is all too willing to place the blame on ethanol without even checking the facts.

An article in the news talks about how the price of bird seed has gone up and points the blame at ethanol.

Another factor driving the price of sunflower seeds up over the past few years has been farmers planting less sunflowers as many planted more corn instead to reap government dollars during the ethanol boom, Willard said.

A check of the data at the USDA shows that this assumption is incorrect.

Sunflower Seed Acres Planted

2008 - 2,516,500 acres
2007 - 2,070,000 acres
2006 - 1,950,000 acres

Somebody needs to clue reports in on the fact that just because something has gone up in price doesn't always mean that it lost acres to corn production.

2008 Gasoline Consumption

The Energy Information Administration (EIA) recently released the final numbers for 2008 gasoline consumption.

Finished Motor Gasoline

2008 - 3,290,057,000 barrels x 42 = 138,182,394,000 gallons
2007 - 3,389,269,000 barrels x 42 = 142,349,298,000 gallons
2006 - 3,377,174,000 barrels x 42 = 141,841,308,000 gallons
2005 - 3,343,131,000 barrels x 42 = 140,411,502,000 gallons
2004 - 3,332,579,000 barrels x 42 = 139,968,318,000 gallons
2003 - 3,261,237,000 barrels x 42 = 136,971,954,000 gallons
2002 - 3,229,459,000 barrels x 42 = 135,637,278,000 gallons

As you can see after years of steady increases the amount of Finished Motor Gasoline consumed dropped off last year. The decrease is probably mostly due to the high prices seen through the early part of the year and the sagging economy in the latter part of the year.

The number that the EIA provides for Finished Motor Gasoline includes all the ethanol blended into the gasoline supply. So to get the number for just the amount of petroleum gasoline consumed the ethanol needs to be subtracted out.

Ethanol Used : Domestic Production + Imports

2008 - 9,838,374,000 gallons
2007 - 6,960,240,000 gallons
2006 - 5,615,484,000 gallons
2005 - 4,040,190,000 gallons
2004 - 3,551,142,000 gallons
2003 - 2,816,688,000 gallons
2002 - 2,153,004,000 gallons

Gasoline Used : Finished Motor Gasoline - Ethanol

2008 - 128,344,020,000 gallons
2007 - 135,389,058,000 gallons
2006 - 136,225,824,000 gallons
2005 - 136,371,312,000 gallons
2004 - 136,417,176,000 gallons
2003 - 134,155,266,000 gallons
2002 - 133,484,274,000 gallons

As you can see the amount of petroleum gasoline consumed peaked in 2004 and was in steady decline through 2007 before really dropping off in 2008.

Source : Energy Information Administration

Update : 2010 Gasoline Consumption

Ethanol Fact Check Needed In The Dairy Isle

Remember the days when information was given to a reporter and they checked the facts before they printed the story? Well, those days are long gone. A story in the news today about the troubles facing the dairy industry highlights this fact. One quote stood out to me.

Also, the high prices of corn, partly fueled by an increase in demand for ethanol, decreased the amount of acreage for barley and other grains dairy farmers purchase.

Over the last couple of years ethanol has been wrongly blamed for decreasing the acreage of many crops. A quick check of the USDA data shows this claim to be false also.

Barley Acres Planted

2008 - 4,234,000 acres
2007 - 4,018,000 acres
2006 - 3,452,000 acres

Looking up this information took less than a minute. Surely asking that reporters take a few minutes and check the facts of their stories isn't too much to ask.

Kansas State Study Finds No Link Between E. Coli And Distillers Grains

Researcher at Kansas State University have conducted another study on the effects of feeding distillers grains and the prevalence of E. coli 0157 in cattle. The conclusions of this study are that feeding distillers grains had no significant effects on the prevalence of E. coli.

Source : Nebraska Corn Kernels

December Biodiesel Production Falls Sharply

December biodiesel production fell by about 14 million gallons from the number posted in November to 48,584,837 gallons. That number is about 19 million gallons lower than the peak established in July and the lowest level since February 2008.

December 2008 - 48,584,837 gallons
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

Aurora Biofuels Pilot Algae Plant Produces Biodiesel

Aurora Biofuels, Inc. today announces that it has successfully operated a pilot plant in Florida for 18 months. The biodiesel produced from the Aurora Biofuels pilot facility has successfully passed ASTM standards, and the consistency of fuel production over the trial period marks a success in perfecting the company's chosen pathway of low-cost open pond algae production systems. The achievement showcases the company's pathway to cost-effectively producing consistent-quality biofuels from algae in industrial-scale volumes, and points to the company's readiness to pursue the commercialization of its biofuel process.

At the Florida facility, Aurora Biofuels has stably cultivated high-oil producing algae since August of 2007, overcoming the contamination problem commonly reported to hinder algae biofuel efforts. Company scientists and engineers have utilized new technological screening processes combined with microbial biology to identify natural algae strains best suited for biofuel production.

In addition, the pilot facility highlights the success of patent-pending engineering processes designed by Aurora Biofuels to allow for environmentally friendly, low-cost production of algae biomass and extraction of bio-oil. At the Aurora Biofuels pilot plant, algae are cultivated in seawater on non-arable land and are harvested in an energy-efficient cost-effective manner. Further, the pilot facility demonstrates that Aurora Biofuels' process can sequester more than 90 percent of carbon dioxide fed into the system.

"Our results prove that large-scale outdoor production of biodiesel from microalgae is entirely within our reach, and that our technology can be optimized and is ready to scale," said Aurora Biofuels Chief Executive Bob Walsh. "In the near-term we expect to demonstrate that the economics of this process can produce biodiesel that is price-competitive with fossil fuels and our first commercial plant will be in operation by 2012."

Source : Aurora Biofuels

DOE Announces Investment of up to $84 Million in Geothermal Energy

U.S. Department of Energy Secretary Steven Chu today announced the release of two Funding Opportunity Announcements (FOAs) for up to $84 million to support the development of Enhanced Geothermal Systems (EGS). Geothermal energy technologies use energy from the earth to heat buildings and generate electricity. Enhanced Geothermal Systems offer the potential to extend geothermal resources to larger areas of the western United States, as well as into new geographic areas of the entire country. These projects will help support the Administration’s efforts to invest in clean energy technologies, create millions of new jobs, end our addiction to foreign oil, and address climate change.

“President Obama has laid out an ambitious agenda to put millions of people to work by investing in clean energy technology like geothermal energy,” said Secretary Chu. “The Administration is committed to funding important research like this to transform the way we use and produce energy and reduce our dangerous dependence on foreign oil.”

Conventional geothermal energy systems must be located near easily-accessible geothermal water resources, limiting its nationwide use. EGS technology would allow power generation in a broad variety of geographic locations. EGS makes use of available geothermal resources to heat engineered reservoirs, which can then be tapped to produce electricity.

The FOAs will explore two specific areas: component research and development/analysis; and support for EGS demonstration projects.

The first FOA seeks advanced technology to address important aspects of engineered geothermal reservoir creation, management, and utilization. DOE anticipates making 20 to 30 awards for a total value of up to $35 million under this FOA, based on annual appropriations. Proposals will be evaluated based on their applicability to the program’s multi-year research, development, and demonstration plan; level of technical innovation; and ability to introduce new technologies into the marketplace. Research teams comprised of academia, industry, or both are expected to apply. The FOA can be found on Grants.gov.

In addition, DOE will continue its partnership with the geothermal community to support field demonstrations of EGS technologies. The second FOA seeks domestic projects in a variety of geologic formations that will quantitatively demonstrate and validate reservoir creation techniques that sustain sufficient fluid flow and heat extraction rates for 5-7 years and that produce at least 5 MWe per year per project. DOE anticipates making 5 to 10 awards under this announcement for up to $49 million, based on annual appropriations. Applicants eligible to apply include institutions of higher education, non-profit entities, for-profit private entities, State/Local Governments, and Indian tribes. The FOA can be found also be found on Grants.gov.

For each of the Financial Opportunity Announcements, DOE and non-DOE Federally Funded Research and Development Centers (FFRDCs), National Laboratories, and federal agencies will be allowed as subcontractors only with any of the previously mentioned entities.

Learn more information about the U.S. Department of Energy’s Geothermal Technologies Program.

E85 Stations Continue To Rise, Reaching 1969

The number of E85 stations across the country continues to rise. For the month of February 42 new locations were added bringing the total number of E85 stations to 1969. From March 1, 2008 to March 1, 2009 a total of 468 new stations were added.

March 1, 2009 - 1969
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.

Imported Oil Major Source of 2008 Trade Deficit

Americans spent a record $453.3 billion on imported petroleum in 2008, a figure representing two-thirds of the U.S. trade deficit of $677.1 billion, according to new statistics from the U.S. Census Bureau.

The 2008 import average price per barrel of crude oil was also a record high of $95.23.

“The hundreds of billions of energy dollars sent to dangerous regimes abroad could be spent to build a new energy economy here,” Sen. Dick Lugar said. “A simple and effective means of strengthening U.S. national security is to dramatically reduce our oil dependence.”

According to the new Census report, the U.S. had record goods and services exports last year of $1,843 billion. This included record exports of foods, feeds, and beverages; industrial supplies and materials; capital goods; petroleum and consumer goods. However, the balance of payments deficits came in a record year of $2,520 billion of imports, led by the same categories.

Source : Senator Dick Lugar Press Release

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

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."

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

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

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

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

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.

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