AgJournal   |  Home   |  Action on ethanol and biodiesel	September 8, 2010

Action on ethanol and biodiesel Recent moves by federal officials may renew interest in renewable fuels. Corn growers claim clean-air victory in Chicago Illinois corn producers applauded the U.S. Environmental Protection Agency's June 28, 2000, decision to leave reformulated gasoline (RFG) requirements intact in Chicago and Milwaukee, WI. Corn growers cry foul over high gasoline prices For the first time in history a bushel of corn is selling for less than a gallon of gasoline - and Midwestern corn growers want the Federal Trade Commission (FTC) to find out why. Several state corn growers associations, in conjunction with the National Corn Growers Association, have called upon the FTC to investigate the skyrocketing fuel prices in the Midwest. They believe the situation may be a deliberate attempt by the petroleum industry to justify repeal of clean-air standards, which foster the use of ethanol-blended gasoline. Sugar policy threatens ethanol market The National Corn Growers Association (NCGA) is concerned that a U.S. Department of Agriculture (USDA) proposal to purchase sugar and divert it to ethanol production will displace corn and have a negative effect on corn prices and carryover stocks. Grower testifies for renewable resource program Vic Miller, a corn grower from Oelwein, IA, and a member of the National Corn Growers Association (NCGA) customer and business development action team, testified April 6 before the House Appropriations Committee's subcommittee on Interior. He asked the committee to provide additional funding for a the U.S. Department of Energy's Plant/Crop-Based Renewable Resources 2020 program. EPA, USDA plan MTBE phase-out Carol Browner, administrator of the U.S. Environmental Protection Agency (EPA) and Agriculture Secretary Dan Glickman announced March 20 a plan to eliminate the fuel additive methyl tertiary butyl ether (MTBE) in order to protect America's water resources and to promote the use of renewable additives, like ethanol. Soybeans supercharge diesel fuel A new type of fuel additive made from soybeans could help reduce energy costs and U.S. dependence on imported crude oil, researchers at the University of Kansas reported. The researchers said fuel additives made from soybean oil improve the performance of diesel fuel and, in particular, of diesel fuel containing ethanol. Flying with farm-grown fuel A new ethanol-based aviation fuel blend soon will be commercially available at the Madison, SD, municipal airport, according to the Carbohydrate Economy Bulletin. California copping out? A U.S. House bill would exempt California from the oxygenate requirements of the federal reformulated gasoline (RFG) program. The National Corn Growers Association sees this bill as a threat to domestic ethanol production, a growing market for U.S. corn. President signs executive order on bioenergy The nation's chief executive has set a goal of tripling the use of biobased products and bioenergy in the United States by 2010. EPA eliminates oxygen requirement Some ethanol supporters in their zeal for their favorite fuel, have put the ethanol industry in jeopardy, said a spokesman for the American Corn Growers Association. Oil analysis at light-speed A sophisticated tool called infra-red spectroscopy, already used to check hay quality, will help speed the development of biofuels. Soy-diesel blends hit the market Farmers in four Midwestern states will be able to buy premium soy oil-diesel fuel blends from cooperatives and local distributors. Plant-based fuels may clear up greenhouse gases Indiana senator introduces bill to launch biofuel research initiative. New blends added to alternative fuel list A U.S. Department of Energy decision allows public vehicle fleets to earn credits for using new biodiesel and ethanol blends. Fast cars fly on ethanol fuel Race drivers gain added horsepower from fuel alcohol. Methanol economy could decarbonize Australia Australians could be travelling in vehicles powered by methanol produced from plantations of trees that cover 30 million hectares of the nation's croplands and high-rainfall pasture zones within the next 50 years. Biodiesel blends get thumbs-up Koch Industries found the rate of farmer acceptance of biodiesel blends high and, thanks to increasing interest from urban bus and truck fleet operators, has expanded the availability of soy-diesel fuel into major urban areas. Gluten, ethanol demand increasing Midwest Grain Products, Inc., has seen heightened demand for the company's vital wheat gluten, specialty wheat proteins and fuel-grade alcohol (ethanol). California should bet on biomass Based on California Energy Commission figures, the state could annually produce over a billion gallons of ethanol from biomass within its borders by 2010. However, very little of this potential is realized, according to the Bluewater Network, a San Francisco-based environmentalist group which supports the U.S. Environmental Protection Agency's (EPA) denial of California's request for a waiver of the reformulated gasoline oxygenate requirement of the 1990 Clean Air Act. Calling for cleaner air and water California Governor Gray Davis Sept. 30, 2000, signed Assembly Bill 2514, which earmarks $2 million of incentives for businesses that transform previously burned agricultural wastes into useful commodities, especially ethanol. The passage of the California bill is significant, given the current regulatory and legislative environment surrounding the gasoline additive MTBE. Companies offered cash to use more renewable fuels U.S. Agriculture Secretary Dan Glickman October 31, 2000 announced details of a new $300 million program to encourage expanded production of environmentally friendly fuels made from corn, soybeans and other crops. The program is intended to help expand markets for agricultural commodities and promote use of biofuels like ethanol and soy-based biodiesel. EPA ethanol decision spurs construction The U.S. Environmental Protection Agency's decision that California must abide by federal regulations regarding the use of oxygenates in reformulated gasoline, had immediate impact on the ethanol industry, says Bob Dineen, vice president of the Renewable Fuels Association (RFA). Corn growers praise bioenergy budget The National Corn Growers Association (NCGA) praised Secretary of Energy Spence Abraham for successfully protecting the DOE Ag Vision 2020 program from any budget cuts. The Ag Vision program focuses on helping ag, forestry and chemical industries increase the use of crops instead of petroleum as feedstocks to produce consumer goods including plastics, paint and adhesives. The program's goal is for plants to become the source of 10 percent of chemical feedstocks by 2020. Bioenergy future bound to biotechnology Two actions of President George W. Bush indicate the future of biotechnology and bioenergy may be intertwined, with far-reaching implications for U.S. agriculture. On May 17, 2001, Bush unveiled a national energy plan with support for renewable fuels research and formally declared May 13 to 19 National Biotechnology Week. Missouri requires labeling of MTBE On Wednesday, May 16, 2001, the Missouri House of Representatives passed legislation requiring the fuel additive methyl tertiary-butyl ether (MTBE) to be labeled on Missouri fuel pumps by the end of August 2001. Eleven states have moved to restrict or prohibit the use of MTBE, and there are at least six bills pending in Congress to eliminate MTBE use in gasoline nationwide Corn growers find sugar donation bittersweet Will 100,000 tons of government-surplus sugar sweeten the ethanol production mix - or will it be like sugar in the corn industry's gas tank? According to the USDA, ethanol producers can use this amount of sugar without negative impacts on the domestic corn market, but one state corn growers association argues to the contrary. Technical data tipped EPA decision The National Corn Growers Association (NCGA) says it provided technical data that was critical in the Bush administration's decision to deny California a waiver of the oxygenate fuel requirement under the 1990 Clean Air Act. Ethanol fight not over Midwestern corn growers hailed President George W. Bush's decision to refuse California's request for a waiver of the federal requirement for oxygenates (such as corn-derived ethanol) in reformulated gasoline. However, Senator Dianne Feinstein (D-CA) accused Bush of "turning a blind eye" to the state's energy crisis and backs legislation which would allow states to opt out of the Clean Air Act mandate. U.S. Army urged to use ethanol In the year 2025, renewable fuels and genetically modified foods will keep armies on the move, according to a new report from the National Research Council (NRC). "Opportunities in Biotechnology for Future Army Applications," released June 20, 2001, lays out a vision of foods and agricultural activities that will keep future warriors fed, disease-free and even safe from friendly fire. Purdue University's Dr. Michael Ladisch, who chaired the committee that produced the report, recommends the U.S. Army start investigating the expanded use of ethanol and biodiesel now. Bill would boost ethanol usage U.S. Representatives Roy Blount (R-MO) and Bobby Rush (D-IL), with the support of House Speaker Denny Hastert (R-IL), have introduced legislation that could boost the use of ethanol by adding as much as 15 percent of the nation's gasoline supply to the reformulated gasoline (RFG) program. Two bills would boost ethanol production The Biotechnology Industry Organization (BIO) July 5, 2001, announced its support for two bills introduced in the U.S. House of Representatives designed to increase funding for biomass use and to support new biorefinery development. Ethanol industry on a roll Williams Bio-Energy LLC has entered into an agreement to market all fuel-grade ethanol produced by Northeast Iowa Grain Processors Cooperative, based in Earlville, IA, the latest in a series of ethanol marketing agreements over the past six months. The Renewable Fuels Association (RFA) June 29, 2001, reported the U.S. ethanol industry set a production record for the month of May - over 108,000 barrels per day. This new record exceeds the previous May record of 103,000 barrels per day set in 2000. Illinois ethanol event draws international crowd More than 1,000 people representing two dozen nations attended the 18th International Fuel Ethanol Workshop in Springfield, IL, sponsored in part by the Illinois Corn Growers Association. Although only a handful of countries, including the United States and Brazil, have fullfledged fuel ethanol industries, many more are interested in using agricultural commodities as fuel sources, says Angela Graf, director of international business development for BBI International, an ethanol and biodiesel project consulting firm. Renewable-fuels bill would set national standard Creating a federal standard for use of renewable fuels would increase prices farmers receive for corn and soybeans, boost net farm income and reduce farmers’ reliance on government payments, according to a study commissioned by the Illinois Farm Bureau. Another ethanol plant under construction Northern Growers LLC has begun construction of a $50 million ethanol plant near Milbank, SD. The plant will produce 40 million gallons of ethanol per year using approximately 14.3 million bushels (40,000 bushels per day) of yellow corn as a feedstock. So long, Pharmacia, hello E85 Pharmacia and Monsanto are parting ways. Meanwhile, the St. Louis-based maker of Roundup Ready corn and soybeans has pledged to support the development of biofuels. Bush believes in biofuels President George W. Bush took a strong stand in favor of renewable fuels as part of a national energy policy in remarks made to the sixth annual Farm Journal Forum in Washington, DC, November 28, 2001. Farmers favor selling stover for fuel Seventy-four percent of U.S. farmers surveyed by the Department of Energy said they would be likely to sell some of their corn stover for ethanol production for a reasonable profit - and 25 percent said they already have sold corn grain to ethanol producers. In addition, 77 percent currently use a 10 percent ethanol, 90 percent gasoline blend in their own vehicles and 26 percent use E85 (85 percent ethanol) or higher blends. Ten percent use soy-diesel fuel. Ethanol plants pump up Missouri economy Two ethanol plants in northern Missouri have directly pumped about $24 million into the state's economy, while indirect benefits include 1,815 new jobs and $17.7 million in added tax revenue, according to a study released February 7, 2002, by the Missouri Corn Growers Association (MCGA) and the Missouri Corn Merchandising Council (MCMC). DOE sees no obstacles to more ethanol The U.S. Department of Energy (DOE) has released a new study indicating no major infrastructure obstacles stand in the way of producing and using over five billion gallons of ethanol across the country each year. Governor reverses MTBE decision In a statement released Friday, March 15, 2002, California Governor Gray Davis extended the time petroleum refiners have to remove MTBE from gasoline sold in California by up to one year. “The governor’s decision is based on unwarranted fear that banning MTBE and switching to ethanol will cause gasoline prices t reach $3 per gallon,” says Tim Hume, president of the National Corn Growers Association and a farmer from Walsh, CO. Senates supports renewable energy After a dramatic series of floor votes, a requirement that U.S. investor-owned utilities generate at least 10 percent of their electricity from renewable resources was retained the Senate's energy bill by voice vote, paving the way for increases in biomass power development. Rivals agree on renewable fuels standard The free-market-favoring National Corn Growers Association (NCGA) and its rival, the supply management-oriented American Corn Growers Association (ACGA), are often at odds on policy issues. However, both support the national renewable fuels standard (RFS) included in the Senate energy bill, which mandate an increase in the use of renewable fuels (like corn-based ethanol) over the next 10 years. Biodiesel burns cleaner than ever Recent tests of a new fuel additive in combination with a soybean oil/diesel fuel blend and low-cost fuel filter showed dramatic reductions in particulate matter emissions at relatively low cost. Senate retains renewable fuels standard On April 23, 2002, the U.S. Senate voted to maintain provisions in the Senate energy bill (S. 517) that create a national Renewable Fuel Standard (RFS). By a vote of 69-30, the Senate tabled an amendment by Senator Charles Schumer (D-NY) that would have eliminated the RFS provisions. Senate passes energy bill 0n April 25, 2002, the U.S. Senate passed the Senate energy bill, S. 517, by a vote of 88-11. The final bill includes provisions to create a nationwide renewable fuels standard (RFS). The National Corn Growers Association (NCGA) is calling its passage an "unprecedented, historic move." But environmentalist organization are hoping both Senate and U.S. House of Representatives energy bills die in conference committee. California's largest supplier switches to ethanol BP, California's No. supplier of gasoline, has taken the first step to phase out the fuel additive MTBE by the end of this year in the gasoline it sells in the state by signing contracts with several ethanol suppliers. Shell switches to ethanol Shell Oil will replace MTBE with ethanol as an oxygenate in gasoline products supplied in the state of California by the end of 2002. This conversion will take place one year in advance of the required deadline December 31, 2003, set by California Governor Gray Davis. Shell, the state's second-largest gasoline marketer, joins California's largest gasoline marketer, BP, in committing to be MTBE-free by the end of this year. Phillips Petroleum already blends more than 80 percent of its gasoline in California with ethanol. ADM to direct-market industrial ethanol Archer Daniels Midland Company (ADM) will begin direct marketing of industrial ethanol products for delivery beginning January 1, 2003. Dry milling destroys Bt protein Ethanol yields from Bt corn matched those of non-Bt hybrids in U.S. Department of Agriculture experiments. In addition, the use of heat in dry-milling to liquefy corn meal quickly destroyed the Bt protein, and there was no detectable trace of it in either the mash or resulting ethanol. Explosion cripples alcohol plant The cause of the September 13, 2002, distillery explosion at Midwest Grain Products, Inc.'s Atchison, KS, plant remains under investigation. As a result of the explosion, the company's Atchison alcohol production facility is inoperable. Pending completion of the damage assessment, the company is unable to estimate when the distillery will reopen. Biofuels help reduce emissions The development of alternative fuels, such as ethanol, is one of the factors that has slowed the global increase in "greenhouse gas" emissions, according to a new report released by the Pew Center on Global Climate Change. ADM to acquire Dow ethanol business Effective January 1, 2005, Archer Daniels Midland (ADM) will acquire the interest of Union Carbide Corporation (UCC) in World Ethanol, a joint venture between ADM and UCC. UCC is a wholly-owned subsidiary of the Dow Chemical Company. According to the Illinois Corn Growers Association, the good news is that ADM will transition existing UCC customers from synthetic sources to fermentation ethanol produced at state-of-the art ADM facilities in Peoria, IL, and Clinton, IA, from corn. German biodiesel demand will exceed production Germany will not have the ability to provide enough domestically produced rapeseed to supply its expanding biodiesel industry. Increases in oilseed or vegetable oil imports, and/or corresponding decreases in exports will be needed, according to the U.S. Foreign Agricultural Service (FAS). Ethanol industry sets record In October, the U.S. ethanol industry set an all-time monthly production record of 159,000 barrels per day (bpd), according to data released by the U.S. Energy Information Administration (EIA). The previous record of 138,000 bpd was set in September. Production for the month was up 31 percent compared to last October when 121,000 bpd of ethanol were produced.

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