Tuesday, June 26, 2012

ANOTHER ETHANOL PLANT SHUTDOWN


The ethanol plants continue to struggle.  Most plants are reporting their profits are "in the red", and several have shutdown.  Here's another article of another plant shudown: 



UPDATE 2-Ethanol sector braces for bad patch as Valero idles plant
Tue Jun 19, 2012 11:08pm GMT

By Michael Hirtzer and Carey Gillam


CHICAGO/KANSAS CITY, June 19 (Reuters) - The U.S. ethanol industry is hunkering down for another spell of deep losses, with a second producer temporarily shutting a Nebraska plant on Tuesday as diminishing corn supplies and lackluster gasoline demand crush profit margins.
Valero Energy Corp is idling its 110 million gallons (500 million liters) a year plant in Albion, Nebraska, but expects it to resume operations before the autumn corn harvest, when prices should start to ease and supplies become more plentiful, spokesman Bill Day said.
(Read full article here: 

http://af.reuters.com/article/energyOilNews/idAFL1E8HJGCJ20120619?sp=true )



"Pete" Landry.........comments welcome at ........way2gopete@yahoo.com




Monday, June 25, 2012

GARBAGE FEEDING GARBAGE PLANT


Here's an interesting article I ran across...........communities sending their GARBAGE to an ethanol plant?  Is this a case of "GARBAGE FEEDING GARBAGE"?


Hobart supports garbage-to-ethanol plant

HOBART The City Council has unanimously approved an interlocal agreement to send Hobart-generated garbage to the Powers Energy ethanol plant in Schneider, if and when it is constructed, becoming the seventh community to commit to the project.
The Joint Interlocal Cooperation Agreement is with the Lake County Solid Waste Management District and the ethanol plant.
Earl Powers of Evansville-based Powers Energy of America, who would develop and own the plant, has asked for commitments from communities, saying they could help him secure necessary funding.
The Hobart council’s vote last week came after Cliff Duggan, attorney for Lake County Solid Waste District, answered members’ questions about the feasibility of the project and the status of other proposed trash-to-ethanol plants.
Duggan said they should know by July 18 if the plant will be built. That is Powers’ deadline to show he has enough funding to build the plant.
Duggan said so far six other communities have passed the agreement. The town of Griffith rejected it; others are pending, he said. The St. John Town Council is slated to vote on the agreement when it meets Thursday.
Councilman Pete Mendez, D-2nd, asked how many other trash-to-energy facilities are running. Duggan said the company has about 46 projects in various stages, and one in Vero Beach, Fla., is about to start up.
Cost has been a concern for some communities. Under the agreement, communities would be able to remove themselves from the agreement if it became prohibitive for them to continue to participate.
In other matters, the council approved an interlocal agreement with the Recycling & Waste Reduction District of Porter County that allows Porter County residents to utilize the city’s latex paint recycling center.
Public Works Director John Dubach said at the last council meeting that Porter County residents will be able to bring in their old paint for free and buy the recycled paint at the regular $3 a gallon price. All Lake County residents currently are able to participate in the program.
Mendez had recommended that out-of-county residents pay more for the paint, saying the city spent $9,000 for the program and got back $3,000.
Mayor Brian Snedecor said the initial ordinance provides for the $3 charge.
He said if it turns out more people bring in paint than purchase it, the Porter County Recycling and Waste District will be required to reimburse the city at a cost of $3 per gallon.
“We could explore the fee again at a later date.This agreement expires on Dec. 31,” Snedecor said.
He added the $9,000 expense includes some one-time costs.
 "Pete" Landry.......comments welcome at "way2gopete@yahoo.com"

Sunday, June 24, 2012

New Article on 15% Ethanol Gasoline (Draft)

Readers, I'd like to share with you a new article I'm drafting for the website's "Ethanol Articles" page and also to submit to newspapers.  It's still in draft form, and will likely undergo several revisions before it's complete.  I'd like to hear back from my website readers what you think about the article.  Is it of value to you?  Is it clear or does it require greater detail or explanation?  In this article, I'm really trying to educate and prepare the public for the new 15% ethanol gasoline, as it has the potential to do serious damage to certain types of gasoline powered equipment.  


Here's the draft article: 


15% Ethanol Gasoline May Be in Stations by the End of 2012              By Pete Landry – June 24, 2012

Readers of my website (PeteLandrysRealGas.com) may recall I wrote an article in 2011 about Growth Energy, a lobby group for a large group of ethanol manufacturing plants in the Midwest petitioned the US Environmental Protection Agency (EPA) in early 2009 to increase the ethanol content of motor fuels from the current 10% maximum to 15%, a 50% increase (see the website’s “Ethanol Articles” page for original article titled: “15% Ethanol Gasoline – A Potential Crisis Developing”).  The EPA allowed input into this proposal and were inundated with replies, almost all negative.  Despite the response, the EPA began testing vehicles with 15% ethanol.  In December, 2010, the EPA issued “conditional approval” for the use of 15% ethanol gasoline (E-15) in 2007 and newer cars and light trucks.  Then, in January, 2011, they extended the approval to use this new gasoline in 2001 thru 2006 cars and light trucks, despite lawsuits against the EPA from over eight different groups.  The biggest concern expressed by litigants was the potential for “misfueling”, or using this gasoline in equipment which was not designed to operate with this fuel. 
In the EPA’s approval of this new fuel, they made the following statement on their website:

What Vehicles and Engines MAY NOT USE E-15 ?
• All motorcycles.
• All vehicles with heavy-duty engines, such as school buses, transit buses, and delivery trucks.
• All off-road vehicles, such as boats and snowmobiles (includes four wheelers and jet skis).
• All engines in off-road equipment, such as lawnmowers (all lawn and garden tools) and chain saws.
• All 2000 model-year and older cars (and light trucks).
   (Gasoline powered home generators cannot operate on E-15 gasoline either)

The EPA has now completed all regulatory requirements necessary to authorize retailers to sell this new fuel.  Ethanol plants have registered to become authorized to sell the ethanol to blenders.  It is expected that E-15 may start showing up in retail stations in Louisiana before the end of 2012.  It is most likely this new fuel will be sold in major, branded stations (Exxon/Mobil, Shell, Chevron, etc).  Independent gas stations, grocery and convenience store have expressed serious concerns about the liability associated with selling this fuel when a customer’s equipment is damaged, exposing them to lawsuits.  The EPA indicates that it is VOLUNTARY, NOT MANDATORY for stations to sell this new fuel.  Retailers are CAUTIONED NOT to let their gas supplier force them into selling this fuel against their will.  Also, many grocery and convenience stores may have older underground storage tanks and pumps which may not be compatible with E-15.   


In my continued research of E-15, I have learned that despite EPA’s claim that this new fuel is safe to use in all 2001 and newer passenger cars and light trucks, ALL automobile manufacturers, domestic and foreign alike, warn owners of 2001 and newer passenger cars and light trucks NOT to use gasoline with greater than 10% ethanol and further say that any damage caused by the use of gas with greater than 10% ethanol will void the vehicle warrantyE-15 should NEVER be used in vehicles model year 2000 or older as manufacturers warn that engine damage will likely occur.  So, PLEASE read your owners manual carefully before considering putting this fuel in your 2001 or newer car or light truck, despite the EPA claim that it is safe.  The ONLY vehicles which may use E-15 without the risk of damage are “Flex” vehicles, which are designed to tolerate all concentrations of ethanol, up to and including E-85 (85% ethanol/15% gasoline). 


I am very concerned that despite pump label warnings, some consumers may be tempted to try this new fuel in equipment for which it is NOT designed.  It will likely be priced about $0.10/gallon lower than E-10.  But, don’t fall for the cheaper price temptation.  As a reminder, here is the EPA approved label which EPA requires to appear on all pumps which will be selling 15% ethanol gasoline:






In addition to 2000 and older model passenger cars and light trucks, this fuel is also NOT COMPATIBLE with marine engines, motorcycles, four wheelers, jet skis, chain saws, all gas powered lawn and garden tools, gas powered home generators and all gasoline powered heavy duty engines like school buses, transit buses and delivery trucks.  Use of E-15 in these engines may destroy the engines according to almost all manufacturers and warranties will NOT cover damages. 


SO, when you pull up to a gas station and see the above new “E15” label on the pump, the old saying of  “BUYER BEWARE” applies………use at your own risk!  Use of this fuel in equipment it is not designed for may be very costly and the buyer may not have any recourse for damages that may result!




"Pete" Landry.......I'd really appreciate hearing from you about this draft article.  E-mail me at ....way2gopete@yahoo.com and let me hear your thoughts on this draft. 



Saturday, June 23, 2012

HAVE A GREAT WEEKEND READERS!

Yet another article on the misery the ethanol industry is feeling these days.  If this continues, we'll likely see more of the "corn ethanol" plants belly up.  Couldn't happen too soon for me.  This ethanol gas ruse is the worst thing ever perputated on the American public.  We've been paying over $6 billion per year for over 10 years to support this industry.  The notion that it reduces our import of crude oil is "poppycock".  Due to the lower gas mileage on "corn gas", we have to fillup more frequently, so, it doesn't gain us anything.

Here's the latest article:


Bloomberg News
Ethanol Gains as Corn Posts Biggest Weekly Jump in 13  Months                                                                                                                     
By Mario Parker on June 22, 2012
Ethanol rose as corn capped the biggest weekly gain since May 2011 on speculation that warm, dry weather will stress crops next week.
The biofuel gained as the corn contract with the most interest soared 9.5 percent this week to $5.54 a bushel, raising the cost of ethanol production.
Producers are losing 8 cents on every gallon of ethanol made, according to data compiled by Bloomberg. Valero Energy Corp. (VLO) (VLO), the third-largest U.S. ethanol producer, this week idled output at its 110 million-gallon-a-year plant in Albion, Nebraska, as the biofuel struggles to keep pace with corn costs.
Denatured ethanol for July delivery rose 1.5 cents, or 0.7 percent, to $2.07 a gallon on the Chicago Board of Trade. Prices have fallen 6 percent this year.
In cash market trading, ethanol in the U.S. Gulf was unchanged at $2.125 a gallon and on the West Coast the biofuel added 0.5 cents, to $2.16, according to data compiled by Bloomberg.
Ethanol in New York jumped 1 cent, or 0.5 percent, to $2.09 a gallon and in Chicago the additive increased 0.5 cent to $2.05.
To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


"Pete" Landry.........comments welcome at way2gopete@yahoo.com

Thursday, June 21, 2012

Yet Another Indication of Ethanol Plants Struggling to Make a Profit

Here's yet another article on the ethanol plant struggles.  Most are no longer profitable and are searching for ways to diversify in hopes of returning to profitability.  The poor economy, consumers driving less due to both the economy and high gas prices, plus loss of the ethanol $0.45/gallon tax subsidy are wreaking havoc on the ethanol industry.  Then, Congress is more and more leaning to reign in the out of control EPA on this issue.  


Here's the article: 

UPDATE 1-Struggling ethanol makers diversify to corn oil

Thu Jun 21, 2012 5:32pm GMT

* Pacific Ethanol adds corn oil to ethanol business
* US ethanol producers make 4.69 mln lbs of corn oil daily
* Diversification needed to offset weak ethanol margins
By Carey Gillam
June 21 (Reuters) - Pacific Ethanol Inc on Thursday said it was launching a corn oil business, the latest U.S. ethanol maker to move to diversify its revenue stream in an industry where margins have been depressed as costly corn supplies dwindle.
California-based Pacific Ethanol said it was installing corn oil separation technology at one plant and planned to do so at its three other plants by the first quarter of 2013. The company said its corn oil business should start generating revenue in the first quarter of 2013.
(Read full article here:  https://news.google.com/news/story?ncl=d4MdFIx2pbgvWRMUf8mD1TKLZkOoM&hl=en&ned=us


"Pete" Landry..........comments welcome at way2gopete@yahoo.com

Wednesday, June 20, 2012

Ethanol Industry in Trouble

Hello readers.........here's yet another article showing that the ethanol industry is in trouble.  Several plants have shutdown and many others are operating in the "red".  Their greatest concern is that the US Congress are finally beginning to have lingering thoughts on the EPA's mandates on ethanol gasoline.  All I can say, "it's about time".  When even Al Gore said it was a mistake to start this business, you know it's not what it was cooked up to be.

Here's the article:

Oil lobby biggest threat to U.S. ethanol: RFA leader                                                      By Christine Stebbins
CHICAGO | Wed Jun 20, 2012 4:57pm EDT
(Reuters) - The biggest threat to U.S. ethanol makers, now struggling with negative profit margins, is not high corn prices but possible changes to the renewable fuel policy by Washington legislators, the top ethanol industry executive said on Wednesday.
"This year is tough. Our biggest challenge though is more about Capitol Hill and threats to policy than the markets and threats to profitability," Bob Dinneen, chief executive of the Renewable Fuels Association, told Reuters on-line grain forum.
The 2007 U.S. energy policy's renewable fuels standard (RFS), mandates annual production of 15 billion gallons of ethanol by 2015 for energy independence. By 2022, RFS calls for 36 billion gallons of renewable fuels, including cellulosic biofuels.
U.S. ethanol production in 2011 was 13.9 billion gallons of which more than a billion gallons was exported.
Dinneen said he was pleased by Friday's approval by the Environmental Protection Agency (EPA) to allow the sale of fuel containing 15 percent ethanol, up from the current 10 percent for vehicles 2001 and newer. But said the oil industry clearly sees ethanol as unwelcomed competition.
"I'm seeing a far more aggressive oil lobby going after the RFS in every forum possible," said Dinneen, citing a lawsuit against EPA over cellulosic numbers and the introduction of anti-RFS amendments to the Farm Bill.
"That speaks volumes as to the lengths oil is prepared to go to undermine this important policy. I do not believe they will be successful," Dinneen added.
NEGATIVE ETHANOL MARGINS, E15 HOPES
Ethanol markers have been hurt this spring by tight grain supplies, which has pushed up the cost of corn, an ethanol feedstock. The soft economy has also weakened demand for gasoline, which is blended with ethanol. Profit margins are running anywhere from 25 to 35 cents per gallon in the red, trade sources say.
"This is most definitely a challenging market, and some plants that might not be as well positioned in the market as others may well look at closing for a bit until this bumper crop comes in. It's really no different than the oil industry that sees production capacity change with the market," he said.
In the past week two Nebraska plants, Nedak Ethanol in Atkinson and Valero Energy (VLO.N) in Albion, temporarily shut down. Both cited high corn prices and negative margins. In April, Archer Daniels Midland (ADM.N) permanently closed its Walhalla, North Dakota plant for similar reasons.
The announcements raised painful reminders of 2008 when the financial markets crash sent ethanol profits plummeting and many producers filed for bankruptcy including VeraSun Energy.
"In my mind, 2008 was a different year. Operating capital was more difficult to secure, if not impossible. Gasoline prices were relatively higher," Dinneen said. "But it was an equally challenging year, just different issues."
"I sure don't see a rash of permanent closures. There may be more consolidation coming to the industry," he added.
But Dinneen remains "bullish" on ethanol as demand for the product stays strong, including exports, which Dinneen said should at least match the record 1.1 billion gallons sold in 2011.
Dinneen also expects the sale of E15 to give the industry a boost, with Iowa, Illinois and Kansas to be among the first states to offer the blend.
A shortage of ethanol pumps at rural filling stations and a push back from retailers who fear lawsuits if car engines fail make adoption of E15 an uphill climb, ethanol makers say.
"The E15 market will grow slowly of course, limited by blendstock availability and the constraints EPA has placed on the product," Dinneen said. "Certainly by September when volatility regulations are removed, E15 should begin to grow more rapidly."
(Reporting by Christine Stebbins; Editing by Bob Burgdorfer)


"Pete" Landry........comments welcome at way2gopete@yahoo.com

Tuesday, June 19, 2012

HAVE A GREAT WEDNESDAY READERS! BACK TO BLOG

Hello readers.........the blog software which we're using for this blog page was updated by the software company that publishes it.  I have been having problems ever since to post.  My "computer guhru" son figured out the problem today and I can now post again.

Here's another article I ran across recently about the increasingly louder and louder debate over the issue of corn for food and fuel.  The ethanol industry is now consuming nearly 50% of the corn grown in the Country to put into fuel. This has caused the cost of food from corn products to skyrocket in price over the last 4-5 years or so.  There are now many US Congressmen who are questioning whether the EPA needs to be "reigned in" on the ethanol  mandates.  Here's the article:


Ethanol: Growing Food, Feed, Fiber, and Fuel?

Evidence Growing That Using Corn to Help Fill Gas Tanks Might Not Be the Best Use of Crops, Tech, and Scarce Taxpayer Dollars

Excerpted from the book Food Fight. To learn more about the Farm Bill and purchase a copy of Food Fight please visitwww.foodfight2012.org

Most analysts agree that we are rapidly approaching “peak oil,” the point when the volume of global oil production begins to decline. In response, Farm Bill programs have promoted a shift to liquid “biofuels” and “biomass” energy derived from farms. The Renewable Fuels Standard of the Energy Independence and Security Act of 2007, for instance, boosted the country’s ethanol production by mandating that up to 36 billion gallons be blended into gasoline by 2022.1 But taxpayers have been investing in this industry for decades via corn subsidies, import tariffs, tax credits for every gallon of ethanol blended with gasoline, loan guarantees, construction cost-shares, and gas pump upgrades. For politicians and lobbyists, ethanol became a sacred cow, untouchable, because of the belief that these public investments would 1) support farmers, 2) reduce dependence on foreign oil (currently about 60 percent of U.S. oil consumption), 3) cut greenhouse gas emissions, and 4) strengthen national defense.
The high costs of these policies—$17 billion between 2005 and 2009 alone—are now being viewed in a more critical light.

The Mounting Case Against Corn
Ethanol
By early 2011, drums were finally beating inside the nation’s capital for a repeal of ethanol subsidies and tax breaks that were sucking up $7 billion per year or more from American taxpayers. Some Iowa counties were reportedly receiving up to $26,800 per rural household in ethanol subsidies, despite evidence that using corn to help fill gas tanks might not be the best use of crops, technology, and scarce taxpayer dollars.
First is the simple energy in, energy out equation. In other words, the amount of power you actually get out of ethanol for what’s required to grow and refine it. Recent analyses reveal that when all of the “well to wheel” inputs of growing, fertilizing, irrigating, harvesting, drying, and processing are tallied, at least two-thirds of a gallon of oil are needed to produce a gallon of ethanol (roughly a 33 percent “net energy balance”).
The bulk of energy used to make ethanol currently comes from coal- or natural gas-fired power plants. Which makes you wonder, how renewable can the fuel be if you need nonrenewable energy to produce it?
Depending on which life cycle assessment you read (there are dozens to ponder), the shift from hydrocarbon- to carbohydrate-based fuels could either ease particulate emissions and global warming significantly or actually make things far worse. In 2005, Dan Kaman of the University of California at Berkeley’s Energy and Resources Group reported a 10 to 15 percent per mile reduction in greenhouse gas emissions from corn-based ethanol. On the same campus, Tad Patzak argued that in its present form, ethanol produces 50 percent more carbon dioxide and sulfur emissions (along with lung and eye irritants) than fossil fuels. According to Michael Bomford of Kentucky State University, the differences between studies almost entirely depend upon how researchers assess the value of the byproduct livestock feed (the “leftovers” from milling plants into ethanol, called dried distiller grains and solubles or DDGS, are often fed to livestock).

The Case for Conservation
Even the most ardent proponents admit that, at best, biofuels can only ever be a part of a diversified energy future. There is simply not enough french fry grease to satisfy the world’s diesel addiction, and only so much arable land. Already about 30 million acres or 36 percent of the U.S. corn crop (the equivalent of all the cropland in Iowa and then some) is dedicated to ethanol corn—but the output is displacing a mere 8 percent of gas.
The same amount of gasoline could have been displaced simply by increasing fleet-wide fuel economy just 1.1 miles per gallon. (And that would have saved American taxpayers nearly $20 billion between 2005 and 2011 alone.)
Clearly, increasing fuel efficiency and cultivating a public consciousness around conservation is a more effective way to reduce gasoline use than corn ethanol. Some other common sense ways that the Environmental Working Group reports could improve gas mileage without a costly ethanol industry include common sense car maintenance (regular oil changes, proper tire inflation, and filter replacements), better all-around driving habits that avoid excessive speeding and acceleration, and higher industry standards for fuel efficiency.
If helping small farmers diversify their economic portfolios was another goal of federal policy makers, ethanol has failed to deliver. What began as a movement of farmer-owned and -operated small-scale plants has given way to facilities dominated by global giants like Archer Daniels Midland, Broin, and ICM, Inc.


Ethanol’s Stewardship Legacy?
Food prices are on the rise around the globe. Land values throughout the Corn Belt are skyrocketing. And the grim reality is sinking in that even if the entire U.S. corn crop were distilled into liquid fuel, it would still supply less than 20 percent of domestic demand. Conservationists worry about the vulnerability of transforming every potentially productive acre—including land set aside for conservation and protected grasslands and parklands—into some form of biofuel monoculture.
Any benefits of the ethanol boom—increased farm revenue, significant reductions in subsidy payments, lower greenhouse gas emissions, and a more diversified fuel supply— come with a potentially unaffordable environmental price tag. As the demand for fuel corn pushes farmers to intensify their land use, soil and water quality are starting to suffer.
Some optimists hope that farming standards can prevent the worst damage. In 2011, European countries agreed upon standards for sustainable cultivating and harvesting of biofuel crops. Similar efforts have stalled, however, in the United States, where there is still no consensus on what constitutes “sustainable” farming practices. There are also legitimate concerns that over-harvesting “crop residues” like wheat straw, corn stalks, etc., eventually will impoverish the soil. Sir Albert Howard, the early-20th-century pioneer of the organic and sustainable farming movements, called this “The Law of Return,” where “what comes from the soil must return to the soil.” Organic matter must be added back into soil for it to stay productive. In addition, harvesting cellulose from lands now set aside to protect wildlife could have devastating consequences to biodiversity and reverse decades of gains made by Farm Bill conservation programs.
Before we continue to subsidize biofuels, we must ask ourselves:
• How much further will federal mandates for biofuel production drive idled lands into production?
• Will parks, forests, and other public lands become vulnerable to energy exploitation and food production?
• How will bio-refineries manage the challenges of seasonality, storage, and transport of crops?
• What are the long-term consequences of “super weeds” now resistant to herbicides used in genetically engineered crops?
• Will food and energy shortages feed on one another?
• Can subsidies be structured to protect farmers during price falls, and to protect taxpayers from huge payouts to biofuels producers that no longer need them?
Perhaps a long-term benefit will emerge from all this, once ethanol ceases to be a way for huge corporations to profitably dump excess corn, and a more logical energy order arises. A sensible biofuel movement could evolve, embracing a diversification of fuel and nonfuel crops on landscapes that include crop rotations, streamside protection, the maintenance of healthy soils, and abundant wildlife habitat and wild areas.


"Pete" Landry.........comments welcome at way2gopete@yahoo.com