Most importantly, Davis noted that no engines in the study were tested with E10 fuel, “the de facto standard gasoline for all grades, which represents more than 90 percent of gasoline available in the U.S. market.” In addition, “only three out of the eight engines were tested with straight gasoline containing no ethanol (E0), and one of those three failed the CRC’s test.”

Ethanol industry organizations were also quick to point out the flaws in the study and note that E15 has been tested more than any other automotive fuel in history. “The reality is they are completely dismissing the fact that E15 is the most tested fuel to date, with extensive testing done by the Department of Energy and the Environmental Protection Agency, with results showing no significant difference between gasoline without any ethanol and an E15 blend,” said Growth Energy CEO Tom Buis.

Renewable Fuels Association president Bob Dinneen noted that the government has tested E15 “the equivalent of 12 round trips to the Moon” and found no problems with the use of E15 in vehicles made since model year 2001. “This study, and continued efforts aimed at confusing rather than informing consumers, impede this progress and do little to address the nation’s need for clean, renewable fuel that lowers the price at the pump and creates jobs here at home,” said Dinneen.

The new analysis from the Center for Agricultural and Rural Development (CARD), an update to a 2009 peer-reviewed paper published in Energy Policy by professors Dermot Hayes of ISU and Xiaodong Du of the University of Wisconsin, found that the growing use of American ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011, up from an average impact of $0.89 per gallon in 2010. The study also found the between 2000 and 2011, gasoline prices have been reduced by an average of $0.29 per gallon, thanks to ethanol.

“Those numbers are large,” said Professor Hayes during a conference call on Tuesday during which he explained his hypotheses for the big impact of ethanol. “Think about the world before ethanol occurred. Every time a gasoline refinery would shut down, the price of gasoline would go up 10-20 cents because the U.S. was at its refinery capacity. What ethanol has done is increased refinery capacity.”

Hayes calls ethanol a “magic bullet that can squeeze ten percent more gasoline out of a barrel of crude oil.”

The original study was the result of a dissertation by Professor Du, while the Renewable Fuels Association funded the update.

Listen to Hayes’ explanation of the study here: ISU Professor Dermot Hayes

Since going electric late last year, its fleet of 176 trucks by Smith Electric Vehicles has eliminated the need for approximately 200,000 gallons of diesel fuel. The all-electric trucks are used for deliveries on urban routes with fewer daily miles.Frito-Lay owns the seventh largest fleet in the U.S. with a total of over 20,000 trucks. The $13 billion convenient foods business has a goal to reduce greenhouse gases and fuel consumption 50 percent by 2020.

“The first million miles with the electric trucks have been a journey of understanding and refining both how and where we use these vehicles, as well as providing input to help improve upon the performance for the next generation vehicle,” said Mike O’Connell, senior director of fleet capability for Frito-Lay North America.

This year Frito-Lay will purchase 100 Newton Series 2000 all-electric commercial vehicles bringing the total number of its electric fleet to more than 280, and a fuel consumption reduction of 500,000 gallons annually.
With all electric trucks fully deployed on routes, Frito-Lay expects to reduce their fuel consumption by 500,000 gallons a year. The trucks generate zero tailpipe emissions. Electric trucks reduce fuel consumption, noise pollution and vehicle CO2 emissions, compared to traditional delivery trucks.

Compressed natural gas (CNG) tractors will be introduced soon, and will be used to haul large loads. Each CNG vehicle, purchased from Freightliner, will reduce greenhouse gas emissions by 23 percent, compared to diesel. With 67 CNG vehicles planned to be on route by the end of the year, Frito-Lay will eliminate the need for more than 900,000 gallons of diesel fuel annually. The CNG vehicles will be used at seven Frito-Lay North America distribution centers, including: Rancho Cucamonga, CA; Irving, TX; Phoenix, AZ; Beloit, WI; Frankfort, IN; Charlotte, NC; and Casa Grande, AZ. The company piloted 18 CNG vehicles to prepare for the roll out.

“The integrated ARA/CLG process provides a pathway for fulfilling the military and civilian markets’ requirements for alternative fuels at parity with petroleum while spurring opportunities for America’s farmers without subsidies,” said Rob Sues, ARA’s President and CEO.

ReadiJet fuel is currently being produced in anticipation for a number of upcoming activities including ground engine testing at OEM facilities, a test flight planned for June 2012 and generation of fit-for-purpose data necessary for ASTM certification.

According to Ed Coppola, ARA fuels principal engineer, the CH Process uses water to reduce hydrogen and catalyst consumption as well as carbon emissions when compared to other conversion processes.  Once the project proves successful and construction is complete on commercial scale biorefineries, CLG will provide licensing and engineering services, reactor engineering, catalyst supply, and start-up assistance.

“With the combination of ARA’s CH PROCESS and CLG’s ISOCONVERSION process technology, we can now produce fungible distillate fuels that meet full ASTM quality requirements and can be blended into refiners’ distillate fuel pools without the density and blending quality issues associated with other biodiesel processes on the market,” said CLG’s Co-Managing Director, Leon DeBruyn.

He added, “We’re also excited that our process works just as well with any other fatty acid bio-derived oils, plant seed oils, and algal oil, which will provide long lasting value for our customers by giving them flexibility to process what is available in the market.”

The solar system features 240 Canadian Solar panels and installation support was provided by Coronado Homes. This is the first solar development at the Stuart Jet Center but additional solar installations are in the works. The Stuart Jet Center said not only did this project make financial sense, but environmental sense as well and hopes other businesses in the community will follow suit and install solar power systems.

This 50kw system will save the equivalent of: 4,835.07 gallons of oil per year; recycle 44,940 pounds of waste; and offset CO2 emissions by 130,333 pounds each year.

Here are the results, 50% said Recently (I do frequently). Wow. Keep it up. But 22% said Never (Waste of time) and just over 9%/each said, Recently (I rarely do); Long time ago; Never (I will now though).

Our new ZimmPoll is now live and asks the question, “Who should be responsible for child nutrition?” This question was inspired by last night’s FoodChat Twitter conversation. I appreciate the school lunch program and what USDA thinks it is accomplishing by creating rules but somehow it doesn’t sit right with me. There would be no need for this if parents would take some personal responsibility for themselves and their children. More and more government control of our lives just won’t work in the long run. At least that’s my opinion. What’s yours?

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

It is estimated that the region’s geothermal potential is 6,000 megawatts. Central America represents 43 percent, Mexico 39 percent, the Andean region 17 percent, and Southern Cone 1 percent. However, to realize this potential, Central America must improve its technical and scientific capabilities.

The training center, located at the Universidad de El Salvador, will offer three specialized graduate-level courses for geothermal experts between 2013-2015. The program will offer 10 scholarships for Salvadoran participants and 10 scholarships for students from other countries.  The program is the only one of its kind in the region and is based on a 2010 pilot program conducted by Universidad de El Salvador, together with LaGeo and support from Italy.

In addition to the courses, a Sustainable Regional Training Plan in Geothermal Energy will be prepared to examine future demand for training as well as academic and financial aspects. It will define curriculum and teaching methods needed to ensure that students receive the best training available. Consideration will also be given to creating additional masters or doctoral-level training in geothermal energy.

In El Salvador two geothermal fields are currently being developed, Ahuachapán and Berlíncon. Once completed they will boast combined installed capacity of 204 megawatts and a net annual 1,421 gigawatt/hours of generation. This will equate to 14 percent of national installed capacity and 25 percent of net generation capacity, with production projected for an additional 25-30 years.

The report ties together demand for biomass in the UK to the role of the EU’s Emissions Trading System and what Carbon Trade Watch says is the destructive expansion of industrial monoculture tree plantations around the world. The report came on the heals of an April 26, 2012 announcement from the UK government regarding its bioenergy strategy that included increased energy production from biomass. Carbon Trade Watch believes the “British biomass boom” will benefit polluters and cause “widespread environmental destruction through land grabs and deforestation.”

“The British government seems determined to lock the country into a dirty energy pathway that fuels climate chaos, arguably the greatest modern day threat to human survival,” said report author Joseph Zacune. “Campaigners are warning that the government’s new bioenergy strategy will require around 80 million tonnes of wood for biomass energy that would unleash land grabs and cause major emissions from deforestation. Why should we continue to subsidise polluters in favour of appropriate energy solutions like wind, solar and tidal energy?”

According to Carbon Trade Watch, local communities across the UK are campaigning to stop biomass-fueled power plants while companies are “greenwashing their polluting activities.

Tamra Gilbertson co-director of Carbon Trade Watch added, “Climate justice struggles bring together grassroots networks, groups and individuals that are demanding tough action against the root causes of climate change and for a truly sustainable, affordable and democratic energy system. To continue the same over-production and over-consumption of energy is a dead-end but governments continue to ensure that profit-seeking corporations control the energy systems and pollute our skies.”

“The results are significant,” Dinneen said. “It reflects the fact that ethanol is less expensive than gasoline today and is displacing ten percent of liquid transportation fuel today and has a huge impact on the price of crude oil.” The $1.09 per gallon impact is 20 cents more than the previous year.

Dinneen explains that the $1.09 a gallon savings means that ethanol reduced the average American household’s spending on gasoline by more
than $1,200 last year, based on average gasoline consumption data. “Since 2000, ethanol has helped save $39.8 billion annually in excess gasoline costs – or roughly $349 per household per year,” he said.

Since the study is based on just 10% ethanol in the nation’s gasoline supply, Dinneen notes that increasing that under the E15 waiver approved by EPA can only result in more savings. “If you’re going to be adding 50% more of a product that is less expensive than gasoline to the overall blend, you’d be providing consumers an even more significant benefit,” he said. “We believe the economics of ethanol are going to drive E15 into the marketplace this summer.”

Listen to Dinneen talk about the new report in this edition of “The Ethanol Report.” Bob Dinneen Discusses Impact of Ethanol on Gas Prices Report

The 72 passenger buses each feature a ROUSH CleanTech liquid propane autogas fuel system. According to ROUSH, this system reduces nitrogen oxide, carbon monoxide and total hydrocarbon emissions as well as nearly eliminate particulate matter as compared to buses fueled with traditional diesel fuel.

“We choose propane autogas because not only does it represent significant reduced fuel costs and clean-burning properties, but also because the source, natural gas, is in abundant supply right here in America,” said William Schofield, superintendent of the Hall County Schools. “With today’s tight school budgets, using a transportation fuel that saves taxpayers money, keeps the environment clean, and keeps jobs within our national borders is a win-win for everyone. Plus, our drivers love how quiet the propane buses perform.”

According to the Natural Resources Defense Council, children are among those most susceptible to the health effects of exhaust exposure. Because of this fact, school districts across the country have been looking for ways to reduce exhaust emissions. For Hall County they will pay less than $2.00 per gallon for the propane as compared to $3.50 for diesel. During 2012, the school districts expects to save $36,000 in fuel costs.

Hall County tested the system over a two-year time frame before the decision was made. Phil Horlock, president & CEO of Blue Bird Corporation added, “Schools across the nation are experiencing the environmental and economic benefits of Blue Bird’s propane buses. We are proud to deliver a bus that not only provides school children with a reliable, safe and environmentally-friendly ride to and from school every day, but also fuels economic development in Georgia.”

Professor Lynne Macaskie, Professor of Applied Microbiology at the University of Birmingham, gave a presentation on the hydrogen research during a collaborative workshop in São Paulo on May 14, 2012. “Fuel cells need clean energy to run them. If you provide bacteria with a supply of sugary waste from, for example, chocolate production, the bacteria can produce hydrogen. At the moment manufacturers pay to dispose of waste but with our technique they could convert it to clean electricity instead.”

According to Macaskie, the research shows a huge potential for biohydrogen as a fuel for the future. “Biohydrogen could even be made from the wastes from bioethanol production – two biofuels for the price of one,” he said. “More work from focused teams, however, is needed, as agricultural wastes are tougher for bacteria to digest.”

The event was organized by O Conselho de Reitores das Universidades Estaduais de São Paulo (CRUESP) and the FAPESP bioenergy programme (FAPESP-BIOEN). Participants came from the University of Birmingham, the University of Nottingham, the State University of Campinas (UNICAMP), the University of São Paulo, and São Paulo State University (UNESP).

“Fleet managers can talk to our customers who have not only realized the benefits of propane autogas, but after experiencing this zero compromise alternative fuel, are coming back for more,” said Mouw whose company is exhibiting in booth 439.

California has approved the use of propane autogas and one of ROUSH CleanTech’s customers is ThyssenKrupp Elevator who will be announcing the deployment of eight propane autogas vehicles in LA. The company will also deploy eight vehicles in San Diego with plans to operate 10 percent of its fleet with propane by 2015.

Tom Armstrong, director of fleet at ThyssenKrupp Elevator added, “When we laid out all the fuels available today, there was only one alternative fuel source that met all of our needs, and that was propane autogas.”

The ACT Expo takes place May 15-17 at the Long Beach Convention Center.

“We checked all of our instruments, motors, and control loops prior to startup, and Oswalt had everything we needed on site and ready to go,” says Mattingly.

Oswalt Bioenergy is owned by Sonny Oswalt, and managed by his son, Hal Oswalt. Both are pleased with the plant’s startup and the timing. Their goal is to have Oswalt Bioenergy ready to sell biodiesel very soon. Hal Oswalt notes an ongoing demand for biodiesel pursuant to RFS2, and says that a lack of plants in his immediate area region helped make the decision to move forward with this five million gallon per year, multi feedstock plant. He is emphatic about enlisting the proper support as one of the keys to success.

“When we started this process, we selected Agri Process Innovations because we found them to be the most experienced engineering group in the industry and the ones whose technology was the most tried and tested,” says Oswalt.

“In six days, we were up and running at full nameplate capacity with a product that passed all our testing,” says Hal Oswalt.

The Oswalts used the Feedstock Financing Program offered by INTL FCStone Inc.’s wholly owned subsidiary FCStone Merchant Services, LLC allowing the plant to operate at full capacity. INTL FCStone Inc. provides a wide variety of risk management services to assist plant operators in managing and maximizing plant profit margins.

“The past five years in the biodiesel industry have been extremely volatile” says Nate Burk of FCStone Merchant Services’ Renewable Fuels Group. He notes that the ongoing growth of the biodiesel industry speaks volumes to the dedication and commitment of companies like Oswalt Bioenergy. “FCStone Merchant Services is pleased to have the opportunity to work with the Oswalts during their initial start-up and we look forward to a long lasting relationship,” says Burk.

The webinar is in response to recent changes made by the ASTM D02 committee creating changes to the ASTM D5798 Standard Specification for Ethanol Fuel Blends for Flexible-Fuel Automotive Spark-Ignition Engines. In other words, the “E85″ Specification. While several changes were made the most significant improvement is the allowance of a wider range of ethanol content, specifically 51 to 83% by volume. Some additional modifications were made that will improve the flexibility for fuel blenders while still ensuring optimal performance for drivers of flex-fuel vehicles. These, along with other changes were needed to allow both E85 sales to continue as well as to broaden the use of mid-level ethanol blends.

It is important to understand that neither the definition of E85 nor the capability to blend it have been altered by this update to D5798.

The aforementioned issues will be addressed as well as what these changes mean for E85, alternative fuels, government fleets, and mid-level ethanol blends. The webinar will also address many concerns and questions that have risen in light of how marketers across the country are adopting new practices based on this new specification. For those who would like to participate, you will need to register here: http://bit.ly/JUIG3D.

Emerald Biofuels is based in Illinois and has enlisted the services of International Alliance Group to provide engineering, procurement and construction services for the project.

“We are very pleased to work with Emerald in its efforts to advance the production of biofuels through this breakthrough project in the U.S.,” said Jim Rekoske, vice president and general manager of Honeywell’s UOP Renewable Energy and Chemicals business unit. “We are proud to offer a technology solution that supports diesel production, while lessening the environmental impact of fuel production through the use of alternative feedstocks and the reduction of greenhouse gas emissions.”

According to Honeywell its UOP Ecofining process, which uses hydroprocessing technology to convert the feedstock to fuel, offers improved performance over both biodiesel and petroleum-based diesel. The fuel has an octane value of 80 compared with a cetane range, the measure of the combustion quality of diesel, between 40-60 with current diesel on the market. Higher cetane values help diesel engines operate more effectively.

Conversions of 12 Ford Crown Victorias and 10 Chevrolet Silverado 2500 trucks began in October 2011 and were completed in six weeks. The autogas vehicles have already eliminated more than 6.6 tons of greenhouse gases; and since 98 percent of our nation’s autogas supply is made in America, the city is displacing thousands of gallons of imported oil by utilizing a domestically produced fuel.

“Autogas is a good fit for our fleet,” says Newport News Vehicle Services Director Bob McElheney. “We’re saving on fuel costs, reducing vehicle emissions, the infrastructure cost is lower than for other alternative fuels, and vehicle performance has actually improved. We were fortunate to receive some funding assistance with SPADP. However, because of the significant fuel savings we’re seeing with autogas, we intend to purchase more propane autogas-capable vehicles in the future.”

Alliance AutoGas partner Baker Equipment performed the vehicle conversions for Newport News, and Alliance fueling partner Phillips Energy installed a 1,000 gallon autogas tank with fuel dispenser at the fleet’s home base. The city entered into a fuel contract with Phillips, who implemented the autogas station at no upfront cost and provides year-round fuel supply.

Currently paying less than $2 per gallon for autogas, Newport News is saving a significant amount on fuel costs. Since the 22 vehicles will use approximately 18,000 gallons of autogas each year, the city expects to save about $22,000 annually. City officials were so pleased with the conversion experience and the fuel cost savings that they plan to convert more vehicles in the future.

“We were able to quickly incorporate the autogas vehicles into our fleet and begin experiencing all of the environmental, cost savings and other benefits of autogas,” said McElheney. “We made the right decision to convert our vehicles, and we certainly look forward to doing more in the future.”

“AFP’s energy policy should come with a whiplash warning,” stated IRFA Executive Director Monte Shaw. “They start by saying the government should not pick ‘winners and losers’ and then turnaround and promote favorable tax subsidies for the oil industry. Whenever a pro-oil group like AFP comes into Iowa spreading inaccurate or out-of-date information, IRFA will be here to set the record straight.”

AFP’s website is replete with numerous inaccurate and out-of-date attacks on ethanol while hypocritically supporting oil industry specific tax subsidies, according to IRFA. Even more telling, at no time has the so-called “free market” group called for an end to the federal petroleum mandate that prevents consumers from choosing the fuel of their choice.

“AFP’s hypocrisy is astounding,” continued Shaw. “On the same page they criticize the now expired ethanol tax credit, AFP argues for the continuation of intangible drilling cost expensing. That tax subsidy can only be claimed by those drilling oil wells and has been around since 1913, the inception of the modern federal tax code. When will oil be ready to stand on its own two feet without a taxpayer crutch?”

Shaw concluded, “At the same time AFP criticizes the federal renewable fuels standard, they remain silent on the federal petroleum mandate, which forces the vast majority of consumers to purchase fuels that contain at least 85% petroleum or face massive federal fines. In reality AFP is working to keep federal energy policy tilted heavily in favor of oil.”

Congressman Bob Goodlatte (R-VA) sent an email last month to members of the House Commerce, and Agriculture and Energy Committees calling the RFS “a de facto mandate for corn ethanol” and urging members of the House Commerce, and Agriculture and Energy Committees to provide relief from alleged “unintended consequences” of the RFS. The email included a “fact sheet” blaming the RFS and corn ethanol for “wasting taxpayer money and harming consumers,” “driving more people into hunger and poverty domestically and abroad” and failing to make any progress toward energy independence for the nation.

In response, Congressmen John Shimkus (R-IL) and Collin Peterson (D-MN) sent out their own email and their own fact sheet citing the successes of the RFS and disputing claims in the Goodlatte letter.

Noting that the intent of the RFS is to “enhance energy security, reduce consumer fuel prices by diversifying our energy portfolio, create jobs and stimulate economic activity, and improve the environment” the congressmen said that “by any measure, the RFS is achieving these goals and providing tangible benefits to the American public.”

The Shimkus-Peterson fact sheet takes on each claim in the Goodlatte letter, referring to them as “abusrd” and “false and misleading” and “red herrings.” In particular, they dispute the notion that the RFS has done nothing to increase energy independence.

“In 2011, ethanol displaced the need for an amount of gasoline refined from 477 million barrels of crude oil—that’s more oil than the U.S. imported from Saudi Arabia,” they wrote. “Indeed, as a result of the RFS and increased ethanol use, U.S. oil import dependence has fallen below 50% for the first time since 1997. In 2005, the year the first RFS was passed by Congress, U.S. oil import dependence peaked at 60.3%. Subsequently, as ethanol production has ramped up, oil import dependence has fallen steadily and hit 45% in 2011, the lowest since 1994.9 Oil imports from the Persian Gulf have dropped by some 300 million barrels since 2001, while ethanol production has grown by 300 million barrels during that same period.”

National Corn Growers Association president Garry Niemeyer thanked Representatives Shimkus and Peterson for working to disseminate factual, accurate information about corn ethanol. “These distinguished Representatives demonstrated that they understand what corn growers have long known; corn ethanol provides important benefits to our economy, our energy security and to our environment,” he said.

The new Holiday station off Highway 10 near Hanson Blvd. in Coon Rapids is kicking off the weekend by offering E85 for an 85¢ per gallon discount on Friday, May 11 from 3-5 p.m. Those lucky enough to be one of the first 20 flex fuel vehicles in line will get E85 for just $1.85 per gallon.

“The new Holiday station in Coon Rapids is one of many stations in Minnesota that offer their customers a Clean Air Choice at the pump,” said Kelly Marczak, environmental programs director for the American Lung Association in Minnesota. “More than a quarter million Minnesotans have flex fuel vehicles that can use E85, and I encourage them to use this cleaner burning fuel whenever possible.”

E85 is for flex fuel vehicles only, and there is a 20-gallon limit per customer during the promotion. Fishing licenses are available at the station, and there will be other in-store specials during the event which is being sponsored by The Linn Companies, Minnesota Corn Growers Association, the American Lung Association in Minnesota, and the Minnesota Clean Air Choice Team. Installation of the E85 dispensing equipment at the site was supported, in part, by funding from a U.S. Department of Energy program.

For those wanting to use a GPS to locate the Holiday station, the address is 1855 Gateway Drive, Coon Rapids.

REG’s balance sheet also remains strong with cash of $75.2 million at the close of the quarter, compared to $33.6 million at December 31, 2011.

“During our first quarter as a publicly traded company, Renewable Energy Group again demonstrated why we are a leader in the advanced biofuel industry,” said Daniel J. Oh, President and Chief Executive Officer of REG. “We grew our biodiesel volumes and revenue substantially, raised capital with a successful IPO, and made solid progress toward upgrades and technology advancements at our biorefineries. With strong demand due to RFS2, and a fleet of biorefineries able to flexibly arbitrage lower cost feedstocks, we believe we are well-positioned to profitably grow our business in 2012 and beyond.”

REG remains poised to help the country continue to ramp up biodiesel production to meet the goals set forth by the Renewable Standard Fuels.

While the site was created for students, returning military personnel and displaced workers, anyone interested in beginning or continuing his or her education in the space will find this site useful. Not only does it contain lists of education programs, but also compares tuition costs, room and board costs, student to faculty ratio, and scholarship and internship opportunities among other information.

Why this site?

In 2011, ASEP published a survey of its members and nearly 60 percent cited a lack of talented workers in the field and more than half were in the process of recruiting for open positions. The U.S. Department of Energy funded the costs of developing the site through a grant in an effort to promote the need and types of jobs in the energy sector.

“Companies and utilities involved in creating energy efficiency programs are facing a lack of talented and adequately traine candidates for jobs,” said Meg Matt, President & CEO of AESP. “MyEnergyGateway.org serves as an educational pathway for students, returning military and those seeking a career change to better understand the numerous opportunities that currently exist in energy. The website encourages users to enter the industry and quickly identify the best options to pursue.”

“By all accounts, it could be a monster,” says Renewable Fuels Association (RFA) Vice President of Research and Analysis Geoff Cooper who did an analysis of the numbers that came out this morning.

Besides a record projected corn crop for 2012 of 14.8 billion bushels, Cooper says there are a number of interesting points to be made about the report, like the fact that use for ethanol is expected to remain steady, while usage for exports and animal feed are increased. “This report shows the increases in demand would not be coming from ethanol,” Cooper says. “So all this rhetoric we hear about ethanol diverting corn away from the feed market, what we’re seeing in this report is that isn’t the case.”

In addition, Cooper says adding in the use of the ethanol co-product distillers grains for livestock feed, “you end up with the equivalent of almost seven billion bushels of corn and co-products going into feed use and that’s an all time record.”

Listen to Cooper’s analysis of the numbers in this edition of “The Ethanol Report.” Geoff Cooper Analyzes USDA WASDE Report

The May 10 World Agricultural Supply and Demand Estimates report projects U.S. feed grain supplies for 2012/13 at a record 416.3 million tons, up 16 percent from 2011/12 at a record 416.3 million tons, with corn production called at a record 14.8 billion bushels, up 2.4 billion from 2011/12.

A projected 5.1-million acre increase in harvested area and higher expected yields, compared with 2011/12, sharply boost production prospects. The 2012/13 corn yield is projected at a record 166.0 bushels per acre, 2.0 bushels above the 1990-2010 trend reflecting the rapid pace of planting and emergence. Despite the lowest expected carry-in in 16 years, corn supplies for 2012/13 are projected at a record 15.7 billion bushels, up 2.2 billion from 2011/12. Total U.S. corn use for 2012/13 is projected up 9 percent from 2011/12 on higher feed and residual disappearance, increased use for sweeteners and starch, and larger exports.

The report kept projected corn use for ethanol unchanged at 5 billion bushels for this year on weak gasoline consumption limiting domestic blending opportunities. In an analysis of the report this morning, the Renewable Fuels Association said, “While still just an estimate, the confidence USDA is displaying in American farmers underscores their unique ability to feed the world and help renewably fuel the nation. There is a lot of growing season left, and these numbers could change by the fall. But, with normal growing conditions it is clear that farmers will continue to meet the bell and provide safe, reliable food and clean, domestic fuel and silence those ‘chicken littles’ that perpetually predict a shortage of corn and catastrophe in the grocery aisle.”

According to EdeniQ, its technology increases yield and output at existing ethanol plants and provides a pathway to move into cellulosic feedstocks. The Cellunator mills a variety of biomass into small, uniform pieces of feedstock that using Pathway enzymes to break down the materials can be converted at low cost to sugars. The company’s technology can be added as a bolt-on to existing ethanol facilities or integrated into new cellulosic ethanol processing plants.

“The market is eager for innovation that can scale from today’s ethanol technology to tomorrow’s resource requirements by creating the lowest-cost route to cellulosic sugars and subsequent high-value products,” said Brian Thome, President and CEO, EdeniQ. “The investments by these prestigious organizations allow EdeniQ to continue our strategy of taking advantage of the existing infrastructure in place across the country and providing a proven pathway to increased sugar yield.“

Flint Hill Resources has four ethanol plants operating in Iowa. Jeremy Bezdek, the company’s managing director of innovation said they invested in EdeniQ because, “EdeniQ’s proprietary technologies provide significant value for the dry-mill ethanol producer in today’s marketplace. Our investment in EdeniQ is another step in our vision to enhance the competitive advantage of our ethanol production facilities.”

ACE Executive Vice President Brian Jennings asks that the state follow the letter of the law and resist making 85 octane gasoline available throughout the state.

“We strongly oppose this recommendation to bend the rules so refiners can pad their profits by dumping substandard gasoline into South Dakota,” Jennings said. “Eighty-five octane gasoline is bottom of the barrel fuel that according to vehicle manufacturers will reduce fuel economy and performance, increase harmful tailpipe emissions, and could damage engines.”

The organization has learned that the State would require a label to inform consumers that the 85 octane fuel may not meet engine manufacturer’s minimum standards for vehicle performance. Before any changes take effect, however, the state will open the discussion up for public input. ACE along with other ethanol and corn grower stakeholders plan to submit comments in opposition of the rule change.

“Even though ethanol’s blending octane is 113, the highest and cleanest source of octane on the market, when this low-grade gas is blended with 10 percent ethanol we are very concerned ethanol will be mistakenly blamed for engine performance problems,” continued Jennings. “That is an unacceptable consequence for South Dakota’s ethanol industry and thousands of the state’s residents and farmers who have invested in ethanol production.”

“We’re installing the system because we’re confident it will yield double bottom-line benefits by reducing our carbon footprint and our utility bill,” said Soccer Dome President Clif Everett.

The solar energy will be hooked into the city’s grid and produce enough energy to offset nearly 85 percent of the Soccer Dome’s energy needs as averaged over a total year. In summer months when the system is anticipated to generate more electricity than the stadium needs, the excess will be sold to BGE. Many sports complexes across the country are adding solar energy to their green mix.

Solar Energy World Vice President Geoff Mirkin said of the project, “Forward-thinking organizations, like Soccer Dome, that increase our region’s energy production by installing solar panel systems have a vital impact on their surrounding communities. More businesses and organizations are looking to cut costs and resources needed to build and operate sports venues. When they find ways to do so while reducing their environmental impact, they enhance the return on investment tenfold. It’s a real win-win situation.”

Global biofuel production produced 110 billion litres in 2010 and supported nearly 1.4 million jobs in all sectors of the global economy according to GFRA. By 2020 the industry is forecasted to produce over 196 billion litres and support over 2.2 million jobs across all sectors worldwide. It is expected that the majority of future growth will come from developing nations in Asia and Africa.

“It is promising to see the global biofuels industry growing during these difficult economic times,” said Bliss Baker, spokesperson for GFRA. “The global biofuels industry is a bright spot in the current world economy and is contributing billions of dollars to output and creating hundreds of thousands of jobs all while reducing our reliance on crude oil.”

Baker added that a growing biofuels industry in developing nations will help bring wealth, jobs and prosperity while reducing reliance on oil. He concluded by noting that the report truly demonstrates the how far the biofuels industry has come in the past decade and showcases continued growth of the industry.

The company has developed a technology platform that can break down a large number of different types of biomass into cellulosic ethanol. The per gallon prices are nearing a point of competitiveness, TMO says, due to their ability to reduce costs through savings in maintenance, production time and capital expenditures. They have also been able to reduce costs through enzyme loadings. When using cassava stalk, TMO is predicting their conversion process will yield 70 to 80 gallons of ethanol per ton of feedstock.

“The total global capacity for 2G biofuels should reach more than 4 billion gallons by 2015,” said Pavel Molchanov, energy analyst at Raymond James. “Crucial to even greater production of cellulosic ethanol is the availability of diverse feedstock options, and cassava stalk can play an important role in the Asian market.”

TMO’s bread and butter partners have been the Chinese who developed the first industrial-scale biorefinery using cassava.  TMO is currently finalizing its process design at its demonstration facility. Once achieved, the company will begin moving forward with plans to expand to commercial scale production.

At a speech to students at the State University of New York, the president said if Congress fails to act soon, clean energy companies will see their taxes go up and they could be forced to lay off employees. “In fact, we’re already hearing from folks who produce wind turbines and solar panels and a lot of this green energy that they’re getting worried because there’s uncertainty out there,” he said. “Congress hasn’t renewed some of the tax breaks that are so important to this industry. And since I know that the other side in Congress have promised they’ll never raise taxes as long as they live, this is a good time to keep that promise when it comes to businesses that are putting Americans to work and helping break our dependence on foreign oil. So we should extend these tax credits. That’s on the “To-Do” list.”

The Advanced Ethanol Council applauds President Obama’s remarks. “The President is right to ask for an extension of existing clean energy tax incentives, including those for cellulosic and advanced ethanol technologies, which level the playing field for clean energy investments in the face of decades-old and permanent tax breaks for the fossil fuel industry. The country will not win the race to develop and deploy clean energy technologies if the U.S. tax code continues to favor incumbents over innovators. We look forward to working with the White House and Congress to ensure that America emerges as the world leader in clean energy and biofuel development.”

Our new ZimmPoll is now live and asks the question, “When was the last time you talked to a journalist about agriculture?” The question is inspired by last night’s AgChat Twitter conversation and a question that had been submitted by @BASFAgro! We’re supposed to stand up for our industry and livelihoods that are threatened by lots of misinformation that gets spread by the media. Just consider how corn ethanol is portrayed so often in the media as an example. What are we doing about it? How are we speaking out? This need is why Domestic Fuel was started originally. Are we willing to develop a relationship with the reporters at our local mainstream media outlets (newspaper/radio/tv/web)? More questions I know but there is a lot we can all do to help educate the ultimate consumers of the products we produce. Keep it up. It does make a difference!

Let your friends and neighbors know they can participate by sharing this link.

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