An ethanol plant in Buffalo Lake, Minnesota has resumed production after being closed in 2010. Formerly known as Minnesota Energy, the plant has been renamed Purified renewable Energy LLC. The new owners plan to begin introducing other feedstocks in addition to corn, such as agricultural waste. They also plan to diversify the plant's products to include isobutanol and other chemicals. The plant in currently permitted to produce 25 million gallons per year, with expansion options up to 35 million gallons. Read more...
Showing posts with label ethanol. Show all posts
Showing posts with label ethanol. Show all posts
Tuesday, September 4, 2012
Tuesday, February 15, 2011
How Much Ethanol Can Nebraska Produce?
Nebraska's 25 ethanol plants have the capacity to produce more than 2 billion gallons of ethanol annually from approximately 700 million bushels of corn, nearly one-half of the state’s recently corn production. A recent report questions how much more the overall production level can increase before it outstrips the maximum corn production yields, especially in view of recent improved efficiency that has increased the capacity of new ethanol plants.
http://www.theindependent.com/articles/2011/02/14/opinions/columnists/robert_pore/doc4d59709831aff752770442.txt
http://www.theindependent.com/articles/2011/02/14/opinions/columnists/robert_pore/doc4d59709831aff752770442.txt
Thursday, February 10, 2011
New Iowa Study Highlights Ethanol's Economic Impact
Iowa State University has released a study showing the potential impact of ethanol on the state's economy. The report shows that when 15 ethanol plans under construction in Iowa are ready for production, the new and current plants combined will have created 1,865 jobs in Iowa. According to the report, each job at an ethanol plant supports another 3.38 jobs in the Iowa economy, meaning a total of 8,169 jobs are expected to be supported by the ethanol industry. In all, ISU says 5,440 current ethanol-related jobs are contributing $245 million to the Iowa economy.
http://www.kcci.com/r/15274338/detail.html
http://www2.econ.iastate.edu/research/webpapers/paper_12865.pdf
http://www.kcci.com/r/15274338/detail.html
http://www2.econ.iastate.edu/research/webpapers/paper_12865.pdf
Wednesday, February 9, 2011
North Dakota Blender Pump Update
According to a recent media report, North Dakota gas stations have now installed more than 170 blender pumps, more than any other state. Blender pumps allow motorists to select a variety of ethanol blends from a single pump in addition to the standard E15 most often sold. The 61st North Dakota Legislative Assembly provided one-time funding for a Biofuels Blender Pump Program--$5,000 per pump and up to $40,000 per retailer. The program has received additional funding from the Department of Energy. Retailers installing ethanol blender pumps also may be eligible for an additional grant of $2,500 per pump from the North Dakota Corn Council. The state program runs through May 1, 2011.
http://www.kxnet.com/getArticle.asp?ArticleId=717738
http://www.communityservices.nd.gov/energy/biofuels-blender-pump-program/
http://www.kxnet.com/getArticle.asp?ArticleId=717738
http://www.communityservices.nd.gov/energy/biofuels-blender-pump-program/
Tuesday, February 8, 2011
New Minnesota Bio-Business Study Released
The BioBusiness Alliance of Minnesota has released a study of the sector's role in the state's economy. The study found that employment in areas relating to agriculture and bio-industry (predominantly ethanol production) has increased by more than 44 percent from 2002 to 2007. The study recommended that the state seek a niche within the ethanol industry to sustain and improve employment prospects.
http://www.minnpost.com/bradallen/2011/02/08/25598/bio-business_a_growing_factor_in_state%e2%80%99s_employment_and_economy_study_finds
http://www.minnpost.com/bradallen/2011/02/08/25598/bio-business_a_growing_factor_in_state%e2%80%99s_employment_and_economy_study_finds
Thursday, February 3, 2011
Millers Object to New Corn Variety
Corn millers reportedly are urging the USDA not to approve a new biotech variety of corn that was engineered to cut the cost and greenhouse gas emissions of ethanol production. The millers say the biotech kernels could accidentally get into the processors' grain supplies and ruin them. The corn in question is produced by Syngenta Seeds, Inc., which has a research center in central Iowa.
http://www.desmoinesregister.com/article/20110203/BUSINESS01/102030343/New-ethanol-only-biotech-corn-raises-doubts
http://www.desmoinesregister.com/article/20110203/BUSINESS01/102030343/New-ethanol-only-biotech-corn-raises-doubts
Likely Cellulosic Feedstocks
By Cole Gustafson, Biofuels Economist, NDSU Extension Service
My new research assistant, David Ripplinger, is helping me with a U.S. Department of Agriculture-funded study that has the goal of developing new pricing and trading standards for cellulosic biomass feedstocks. A first step in the study is to identify the most promising feedstocks and the technologies employed to produce cellulosic biofuels.
We have developed a database of current and planned biomass projects using commercial data published in several biofuel industry publications and by the U.S. Department of Energy. Projects were reviewed to assure progress was being made and the activity wasn’t just hype.
In total, more than 100 different projects were included. Of these, there were more than 25 alternative technologies employed and just as many feedstock sources.
The top five feedstocks and their production goals for 2015 were algae, 857 million gallons; palm, rapeseed oil and waste fat, 572 million gallons; palm waste, 316 million gallons; corn, 263 million gallons; and municipal solid waste, 233 million gallons.
Agricultural straws and stovers, which have been highlighted for several years, didn’t make it very far up the list as potentials. The highest was corn stover at 64 million gallons. Dedicated energy crops, such as switchgrass and miscanthus, were not even included in the top 25 possibilities being considered.
With respect to production and conversion technologies, the ranking was far tighter. Hydroprocessing (772 million gallons), algae fermentation (750 million gallons) and fermentation of feedstocks other than algae (678 million gallons) were highly ranked. Enzymatic hydrolysis, pyrolysis and gasification, which are actively discussed in the literature, also ranked low.
Several interesting points can be made with this data. First, 2015 isn’t that far away, and production in our totals falls short of renewable fuel standard (No. 2) national goals for cellulosic biofuel production. Firms are going to have to accelerate research development, technology deployment and commercialization to achieve these goals. A significant hurdle is capital, which is only now starting to thaw.
Second, economic reality is going to sort out the winners from the losers. While algae is at the top of the list, the feedstock recently has received several quite negative reviews with respect to commercial viability and affordability. Trade policy also is going to have a huge effect on economics, especially for feedstocks such as palm, which are imported. Our personal view is that waste fats and solid waste offer a competitive advantage because of the low delivery cost.
Third, with technology alternatives ranked so closely, it is premature to anoint a winner. Continued refinement easily could result in reshuffled rankings. Finally, the apparently low relationship between feedstock and technology implies that most feedstocks have potential, regardless of which technology evolves.
While the word "likely" is in the title of this article, the best technology or feedstock choices are not crystal clear as of yet.
Source: NDSU Agriculture Communication
My new research assistant, David Ripplinger, is helping me with a U.S. Department of Agriculture-funded study that has the goal of developing new pricing and trading standards for cellulosic biomass feedstocks. A first step in the study is to identify the most promising feedstocks and the technologies employed to produce cellulosic biofuels.
We have developed a database of current and planned biomass projects using commercial data published in several biofuel industry publications and by the U.S. Department of Energy. Projects were reviewed to assure progress was being made and the activity wasn’t just hype.
In total, more than 100 different projects were included. Of these, there were more than 25 alternative technologies employed and just as many feedstock sources.
The top five feedstocks and their production goals for 2015 were algae, 857 million gallons; palm, rapeseed oil and waste fat, 572 million gallons; palm waste, 316 million gallons; corn, 263 million gallons; and municipal solid waste, 233 million gallons.
Agricultural straws and stovers, which have been highlighted for several years, didn’t make it very far up the list as potentials. The highest was corn stover at 64 million gallons. Dedicated energy crops, such as switchgrass and miscanthus, were not even included in the top 25 possibilities being considered.
With respect to production and conversion technologies, the ranking was far tighter. Hydroprocessing (772 million gallons), algae fermentation (750 million gallons) and fermentation of feedstocks other than algae (678 million gallons) were highly ranked. Enzymatic hydrolysis, pyrolysis and gasification, which are actively discussed in the literature, also ranked low.
Several interesting points can be made with this data. First, 2015 isn’t that far away, and production in our totals falls short of renewable fuel standard (No. 2) national goals for cellulosic biofuel production. Firms are going to have to accelerate research development, technology deployment and commercialization to achieve these goals. A significant hurdle is capital, which is only now starting to thaw.
Second, economic reality is going to sort out the winners from the losers. While algae is at the top of the list, the feedstock recently has received several quite negative reviews with respect to commercial viability and affordability. Trade policy also is going to have a huge effect on economics, especially for feedstocks such as palm, which are imported. Our personal view is that waste fats and solid waste offer a competitive advantage because of the low delivery cost.
Third, with technology alternatives ranked so closely, it is premature to anoint a winner. Continued refinement easily could result in reshuffled rankings. Finally, the apparently low relationship between feedstock and technology implies that most feedstocks have potential, regardless of which technology evolves.
While the word "likely" is in the title of this article, the best technology or feedstock choices are not crystal clear as of yet.
Source: NDSU Agriculture Communication
Sunday, January 30, 2011
Pipeline Fight in Fairmont
Minnesota's Buffalo Lake Energy wants to build a 20-mile pipeline to carry treated water from its ethanol plant near Fairmont to the Blue Earth River for disposal. Environmental groups are opposing the plan, even though company officials at the southwest Minnesota site claim their proposal meets all state standards.
http://mankatofreepress.com/local/x376909854/Pipeline-plan-spurs-water-warfare
http://mankatofreepress.com/local/x376909854/Pipeline-plan-spurs-water-warfare
Wednesday, January 26, 2011
Iowa Governor Wants to Subsidize E-15
Speaking at the Iowa Renewable Fuels Summit in Des Moines this week, Governor Terry Branstad called for shifting state subsidies from the E-10 blend in the state to E-15 following the recent Environmental Protection Agency ruling that vehicles made after 2001 could use the higher ethanol blend. A study released at the event by the Iowa Renewable Fuels Association claims the industry accounted for nearly 8% of the state’s Gross Domestic Product last year and boosted state tax revenue by $532 million. The state has 39 ethanol plants, all up and running. Read more...
Tuesday, January 25, 2011
Iowa Senator Introduces Biofuels Bill
U.S. Senator Tom Harkin (D-IA) has introduced the “Biofuels Market Expansion Act of 2011,” legislation designed to promote Flexible Fuel Vehicles, expand the number of blender pumps, and make renewable fuel pipelines eligible for the federal loan guarantee pipeline program. The bill's co-sponsors included Senators Tim Johnson (D-SD), Richard Lugar (R-IN), Amy Klobuchar (D-MN), and Al Franken (D-MN). Read more...
Third Biggest Corn Crop in South Dakota
The 2010 South Dakota corn crop harvest finished at 569.7 million bushels, according to USDA figures--the state’s third-largest crop on record. Final state corn yields came in at 135 bushels per acre. Record ethanol production is projected to use roughly 100 million bushels of the total production. Read more...
Monday, January 24, 2011
Nebraska Officials Praise E15 Decision
The recent decision by the Environmental Protection Agency to allow increased ethanol blends in cars manufactured between 2001 and 2006 has drawn praise from industry officials in Nebraska who say the move will provide a big boost to the state's economy. Nebraska is the nation's number two ethanol producer. Production is expected to soar to more than 2 billion gallons annually when the new 113-million-gallon Aurora West ethanol plant in Aurora begins production. Officials cited the lack of blender pumps as a major hurdle to overcome before the increased blends can see significant sales in the state. Read more...
Thursday, January 6, 2011
Hawkeye Sells Iowa Ethanol Plants
Hawkeye Renewables announced today that it is selling its ethanol plants located in Iowa Falls and Fairbank, Iowa, to Flint Hills Resources Renewables, LLC in an all-cash transaction. Flint Hills Resources Renewables is an affiliate of Koch Industries, Inc. and Flint Hills Resources, LLC, a leading provider of transportation fuels used in the Upper Midwest. The transaction is expected to close early in the first quarter of 2011. Read more...
Tuesday, January 4, 2011
Infrastructure Needed for More Ethanol Consumption
The United States doesn't have the infrastructure to meet the federal mandate for renewable fuel use with ethanol, but could meet the standard with significant increases in cellulosic and next-generation biofuels, according to a Purdue University study. Read more...
Saturday, January 1, 2011
Does the DDG Flap Mean Trouble for Iowa Ethanol?
Iowa ethanol producers are monitoring the trade dispute between the U.S. and China over dried distillers grains (DDGs) and wondering what it means for them in 2011. Last week, China announced an investigation into what it says may be illegal dumping of DDGs by the United States. DDGs are the dried corn kernel shells left over during ethanol production. They typically are sold for livestock feed at prices less than regular corn. Sales of DDGs contribute up to 30% of the revenue generated by a typical ethanol plant. Iowa leads the nation in the number of ethanol plants with 40 and accounts for about one-third of U.S. ethanol production. Read more...
Tuesday, December 21, 2010
Ethanol and Biofuel Tax Credit Extensions
By Cole Gustafson, Biofuels Economist, NDSU Extension Service
On Dec. 17, 2010, Congress passed and President Obama signed legislation extending for another year the 45-cent-per-gallon ethanol and $1-per-gallon biodiesel tax credits, as well as the 54-cent-per-gallon ethanol import tariff. The biodiesel tax credit terminated almost a year ago, and the ethanol tax credit and tariff were scheduled to cease at the end of this year.
The ethanol industry praised the extensions, saying the legislation would save jobs in rural America and lead to greater oil independence. It is true that the tax credits are a direct economic benefit to the industry. However, it isn’t always clear which part of the industry captures the benefit. When margins are high, blenders are able to extract and capture most of the benefit because enough biofuel exists in the marketplace. When profitability is at a break-even point, blenders pass greater portions of the tax credits to biofuel plants to entice production.
In the case of biodiesel production, the tax credit is large and a key economic driver. When the credit ceased to exist in 2010, most biodiesel plants curtailed production. Profitability in the ethanol industry during the past year has been somewhat mixed. Iowa State University reports that total economic returns were at a break-even point through the summer, but increased to 33 cents per gallon in November.
Extending the credit certainly will benefit established biofuel plants. However, by merely extending the credits and tariffs for only one year (Dec. 31, 2011), the legislation does little to stimulate new biofuel investment. Construction of new biofuel plants is a long-term investment, so risk-averse investors are weary of funding such ventures with such policy uncertainty. The wind energy industry was stymied for several years when its tax credit provisions were on and off again.
Creating even more angst among biofuel investors are the emerging differences within the industry. One faction seeks to continue funding tax credits at the present level, while another faction prefers to replace the credits with new investments in blender pumps, dedicated pipelines, and flex-fuel vehicles that would secure biofuel demand into the future.
In another interesting twist, the legislation extended the ethanol tax credit at 45 cents per gallon, while the ethanol tariff remained at 54 cents per gallon. Previously, they were at identical monetary values because the tariff was justified as a means of offsetting the benefit blenders get when they import ethanol from other countries (blenders get a tax credit for selling ethanol in the U.S. but have to pay a tariff for importing it). Now that a differential exists between the credit and the tariff, foreign ethanol producers have a legitimate complaint that can be advanced to the World Trade Organization.
With a new, more conservative Congress and mounting federal budget pressures, I expect continued active debate in 2011 on the value of biofuel tax credits and tariffs.
Source: NDSU Agriculture Communications
On Dec. 17, 2010, Congress passed and President Obama signed legislation extending for another year the 45-cent-per-gallon ethanol and $1-per-gallon biodiesel tax credits, as well as the 54-cent-per-gallon ethanol import tariff. The biodiesel tax credit terminated almost a year ago, and the ethanol tax credit and tariff were scheduled to cease at the end of this year.
The ethanol industry praised the extensions, saying the legislation would save jobs in rural America and lead to greater oil independence. It is true that the tax credits are a direct economic benefit to the industry. However, it isn’t always clear which part of the industry captures the benefit. When margins are high, blenders are able to extract and capture most of the benefit because enough biofuel exists in the marketplace. When profitability is at a break-even point, blenders pass greater portions of the tax credits to biofuel plants to entice production.
In the case of biodiesel production, the tax credit is large and a key economic driver. When the credit ceased to exist in 2010, most biodiesel plants curtailed production. Profitability in the ethanol industry during the past year has been somewhat mixed. Iowa State University reports that total economic returns were at a break-even point through the summer, but increased to 33 cents per gallon in November.
Extending the credit certainly will benefit established biofuel plants. However, by merely extending the credits and tariffs for only one year (Dec. 31, 2011), the legislation does little to stimulate new biofuel investment. Construction of new biofuel plants is a long-term investment, so risk-averse investors are weary of funding such ventures with such policy uncertainty. The wind energy industry was stymied for several years when its tax credit provisions were on and off again.
Creating even more angst among biofuel investors are the emerging differences within the industry. One faction seeks to continue funding tax credits at the present level, while another faction prefers to replace the credits with new investments in blender pumps, dedicated pipelines, and flex-fuel vehicles that would secure biofuel demand into the future.
In another interesting twist, the legislation extended the ethanol tax credit at 45 cents per gallon, while the ethanol tariff remained at 54 cents per gallon. Previously, they were at identical monetary values because the tariff was justified as a means of offsetting the benefit blenders get when they import ethanol from other countries (blenders get a tax credit for selling ethanol in the U.S. but have to pay a tariff for importing it). Now that a differential exists between the credit and the tariff, foreign ethanol producers have a legitimate complaint that can be advanced to the World Trade Organization.
With a new, more conservative Congress and mounting federal budget pressures, I expect continued active debate in 2011 on the value of biofuel tax credits and tariffs.
Source: NDSU Agriculture Communications
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