Search for New Ethanol Fuel Source Continues

The search for a source of ethanol besides corn continues..........here's yet another article on the subject:

Researchers: Sorghum holds promise as next-gen ethanol crop

By Kris Bevill | July 09, 2012

·       

First-generation ethanol producers who are looking for ways to provide advanced biofuels for the U.S. renewable fuel standard (RFS) may find an easy “in” with sweet or biomass sorghum, according to a group of scientists from Purdue University, the University of Nebraska-Lincoln, the University of Illinois and Cornell University. In a paper published in the scientific journal Biofuels, Bioproducts & Biorefining, titled “Envisioning the Transition to a Next-Generation Biofuels Industry in the U.S. Midwest,” the researchers examine how the existing biofuels infrastructure could be used for second- and third-generation biofuels production and highlight sorghum as a bioenergy crop that is particularly well suited for use in existing facilities.

“In the near future, we need a feedstock that is not corn,” Purdue agronomy professor Cliff Weil said. “Sweet and biomass sorghum meet all the criteria. They use less nitrogen, grow well and grow where other things don’t grow.”

Logistical considerations for biomass-to-fuel processes require further refinement, but Maureen McCann, a Purdue professor of biology and director of the Energy Center and the Center for Direct Catalytic Conversion of Biomass to Biofuels, suggests that sorghum could be transported from harvest locations to collection points such as grain elevators using existing rail lines. From there, sorghum could be densified before being transported to the biorefinery for further processing. “Biomass has roughly half of the energy content of gasoline – even if it’s very compressed and tightly packed,” she said. “The issue is really how to increase the intrinsic energy density by preprocessing conversion steps that could be done on farm or at the silo so that you’re transporting higher-energy products to the refineries.”

The researchers also predict that farmers may be more willing to grow an annual energy crop such as sorghum rather than a perennial crop. “If we’re talking about planting switchgrass, that’s a 15-year commitment,” said Nathan Mosier, a Purdue associate professor of agricultural and biological engineering. “You can’t switch annually based on the economy or other factors. You are committed to that crop.”

According to the National Sorghum Producers, a group representing 1,100 sorghum growers, between 5 million and 7 million acres of sorghum are grown annually in the U.S. About 35 percent of the grain sorghum crop is currently being used for ethanol production, however the majority of the crop is used for animal feed. In 2010, the Top 5 sorghum-producing states were Kansas, Texas, Oklahoma, Colorado and South Dakota, according to the NSP. The group expects biomass and sweet sorghum acreage to expand most noticeably in the Southeast region of the U.S. and in South Texas as demand for biofuels grows. Growers’ main concerns related to sorghum are weed control and lack of a market, and the United Sorghum Checkoff Program is working to address both issues through research and market development.

Now Ethanol From Corn Cobs & Shucks?

Hope everyone had a GREAT weekend readers!

Several companies continue to search for a process to enable ethanol manufacture from other than corn.  Here's an article describing a projected new DuPont plant to make ethanol from corn cobs, leaves and stalks.......it's a small plant, likely to prove the technology.  If it's successful, it could take some pressure off corn use as the exclusive source of ethanol production in the US.

Here's the article:

DuPont lets engineering contract for Iowa cellulosic ethanol project

HOUSTON, July 6

07/06/2012

By OGJ editors

DuPont Danisco Cellulosic Ethanol LLC (DDCE) let a contract to KBR for engineering and procurement services for DuPont’s first cellulosic ethanol plant, which is to be built in Nevada, Iowa.  DDCE, a DuPont subsidiary under the DuPont Industrial Biosciences Group, already produces cellulosic ethanol at a precommercial plant in Vonore, Tenn.

The Iowa plant will be designed to process 1,300 tons/day of corn cobs, leaves, and stalks to produce 27.5 million gal/year of ethanol, which would be blended into gasoline to help US fuel manufacturers fulfill federal requirements, KBR said.

The 27.5 million gal/year surpasses current US Environmental Protection Agency requirements for cellulosic ethanol volumes in gasoline. The EPA determines the volumes for types of biofuels that are to be blended into the transportation fuels mixture under the renewable fuel standards, RFS1 and 2, under the 2007 Energy Independence and Security Act (EISA).

The 2012 RFS2 update, released in December 2011, calls for a cellulosic inclusion volume of 8.65 million gal (<600 b/d), which is a downward revision from the original 2012 RFS2 cellulosic target of 500 million gal (OGJ, Apr. 2, 2012, p. 98).

DDCE plans to build the plant adjacent to Lincolnway Energy LLC’s conventional ethanol plant. Upon completion, the DDCE plant would be one of the world’s first commercial-scale cellulosic ethanol plants.

Construction is expected to take 12-18 months from groundbreaking, which is scheduled during the second half of 2012, KBR said. The value of the contract was not disclosed.

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

BAD NEWS CONTINUES FOR ETHANOL INDUSTRY!

Have a GREAT Saturday readers...........

The bad news for the ethanol industry continues.  More ethanol plants shutdown or reduce rates.  The new worry is about droughts in several corn producing states that may not only reduce the corn supply, but also raise corn prices.  That's also bad for us consumers since the price of all food products made from corn continues to rise and rise as nearly 50% of the corn grown in the US is now to make "corn gas".  

And they continue to put their bets on 15% ethanol gasoline as their savior.  But, there remains many, many issues to overcome before we see "E-15" in stations.  Retailers DON'T WANT E-15 due to enormous liability issues.  




Ethanol plants cutting production [American News, Aberdeen, S.D.]
By Jeff Natalie-Lees, American News, Aberdeen, S.D. McClatchy-Tribune Information Services
July 06--                                                                                                                                                                                                                                                           
An oversupply of ethanol and skyrocketing corn prices are causing many ethanol plants to cut back production.
Valero Energy Corp., a major petroleum company that also operates 10 ethanol plants, has temporarily shut down two plants, because the cost of making ethanol was more than its selling price. The plants are in Albion, Neb., and Linden, Ind. South Dakota ethanol plants are feeling the pinch, but those near Aberdeen are maintaining their production levels.
"There have been pretty tough margins in the ethanol industry the last six months, but we are not considering cutting back production," said Tom Hitchcock, CEO at Redfield Energy.  The plant makes about 55 million gallons of ethanol a year. Redfield Energy may be in better shape then some ethanol plants, he said.
"Each facility has its own set of circumstances and those that are shutting down temporarily probably have poor plant economics or have a lack of corn in their area, Hitchcock said.
The Glacial Lakes Energy ethanol plants in Mina and Watertown have considered cutting back production, but have not done so yet.  "We have looked at that possibility a number of times," said Jim Seurer, Glacial Lakes CEO. "But so far we have not done it."  One plan is to cut production by 20 percent, he said. Glacial Lakes also has the capability of idling one of its two 50-million gallon capacity plants in Watertown while letting the other Watertown plant and the Mina plant maintain full production.  "Right now it is too early to say if we will need to do any of that," Seurer said. "We are monitoring the situation."
Representatives from the Poet Biorefining Plant in Groton said that the company does not discuss production amounts.  Kelly Kjelden, general manager at Groton, said Poet has diversified its product line by making corn oil at many of its plants, including Groton, and continues to sell its dried distiller's grain. The company is strong and can weather changing market conditions, he said.  The biggest concern right now is that drought in parts of the corn belt will further drive up commodity prices.  Corn futures on the Chicago Board of Trade have gone up nearly $1.50 a bushel in the last two weeks, Hitchcock said.
Drought conditions in Indiana, Illinois and parts of Iowa will likely decrease overall corn production in the country. As of Tuesday, corn futures on the Chicago Board of Trade were $6.66 a bushel. Some analysts are predicting corn will go up to $7.25 a bushel.  While that is good news for farmers that can harvest a crop, it increases costs for the 95 percent of ethanol plants that use corn for making bio-fuel.  Wholesale ethanol prices have not kept pace with increased corn costs.
Continued uneasiness about the world economy and less driving by American consumers have decreased demand for ethanol. Companies that buy ethanol have a good supply on hand. Many of them went on a spending spree in 2011 before the blender ethanol tax credit expired Jan. 1. They are still working off those inventories.
"When you compare the market dynamics to last year, we are in a much different situation," Hitchcock said. "Ethanol prices are down and corn prices are up."  The wholesale ethanol price is $2.34 a gallon, 28 cents less per gallon than it was in November.  Corn is up 39 cents compared to its November price.
The export market has also weakened.
A year ago, the Glacial Lakes plant in Mina was exporting its ethanol to Brazil because its sugar cane crop had failed. The Mina plant discontinued exporting to Brazil two months ago.  "We had a good run of exports to Brazil, about 120 to 130 million gallons, but demand there has softened," Seurer said. "It would be good news for us if we could export again."
Demand for ethanol remains stagnant because of an Environmental Protection Agency rule allowing only a 10 percent blend of ethanol in fuel for older vehicles. While the EPA has approved a 15 percent blend for models built between 2001 and 2012, it has not approved it for older models. Gas stations are reluctant to change from E-10 to E-15 until all models are approved.  When ethanol plants -- like those owned by Valero -- go off-line, it helps equalize supply and demand.  The 55 million gallons of ethanol produced by the Redfield will someday no longer be counted in the nationwide supply.
The plant is scheduled to undergo a major retro-fit that will allow it to produce isobutanol, a fuel with more diverse uses than ethanol. Construction is expected to begin in the fall or early winter, Hitchcock said.


Companies in the ethanol industry continue to look for ways to compete in a changing marketplace.


The best thing that could happen for the industry would be for EPA to support E-15 use in all vehicles, Seurer said. That would potentially increase demand 50 percent, he said.


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


___

HAPPY 4th OF JULY READERS!

HAPPY INDEPENDENCE DAY TO EVERYONE!  

Sorry for missing posts readers!  Been "under the weather" for the past week.

As I've covered in several recent articles, the ethanol industry is "suffering" and more and more plants are being "idled".  There is also growing pressure in Congress to limit the EPA's mandates on continuing to increase the number of gallons to be produced each year.

Here's yet another article describing the issues with the ethanol industry:



Peak ethanol - so now what?

PEAK ethanol has arrived. As an alternative to petroleum based fuel, ethanol has fallen off its pedestal. After 15 years of growth, consumption in the US is starting to decline and production plants are closing down.
The industry invested heavily in new capacity based on assumptions that fuel consumption would continue to rise and ethanol’s share would increase, underpinned by laws requiring a certain proportion of ethanol to be blended into petrol. But petrol consumption is not increasing and, with ethanol in the US now accounting for almost 10 per cent of petrol supplies, the legal mandates have almost been reached.
Meanwhile, the ethanol industry's once powerful political support has weakened. Congress last year eliminated about $6 billion in annual subsidies, and critics are pushing for cuts in the 15 billion-gallon-a-year mandate. The industry’s plan to increase the mandate to 15pc appears doomed.
The ethanol industry consumes about 40pc of corn produced in the US, up from around 14pc in 2005, and has contributed to a big rise in corn prices. But with corn production up and the change in ethanol’s fortunes, the reverse is now occurring. The price of corn is back to where it was two years ago. Wheat and barley, which are partial competitors, have gone the same way.
Peak ethanol has also arrived in Australia. A campaign led by petrol retailers forced the NSW government to back down on its plan to replace normal unleaded fuel with E10, although the 6pc ethanol mandate was retained. With the focus now on gas, there is little prospect it will rise again.
Ethanol’s course has mirrored the economy, both in the US and here. With prosperity, all sorts of indulgences can be accommodated. When times are tough, it’s back to basics.
The idea that fuel could be grown at home rather than imported from unfriendly foreign countries appealed to a lot of people. Lining the pockets of Muammar Gaddafi or Hugo Chavez was never going to win against that. Green groups also argued that ethanol was renewable and produced fewer greenhouse gas emissions, while the farm sector pointed to opportunities for “struggling farmers” to benefit from increased demand for their crops.
There were some who disagreed. The developing world pointed to the impact of higher food prices on global hunger, with a UN official describing biofuels as a “crime against humanity”. The industry responded by promising to shift to cellulosic feedstock based on non-food crops grown on marginal land.
The elephant in the room was always the fact that it is a lot more expensive to grow and produce ethanol than it is to extract and refine petroleum, and cellulosic ethanol is even more expensive. The only way ethanol can compete with petrol is with government support. That has been forthcoming in the form of subsidies, tax advantages and protection through mandated blending.
There is a cost to this. Subsidies are a direct hit to the budget; tax advantages leave the government with less revenue; and blending mandates impose extra costs on the fuel industry. Ultimately the cost is borne by consumers, contributing to lower economic growth. And that lowers tax revenue as well.
Governments are beginning to reduce their support not because of sudden concerns about starving people or the feeling that industries ought to stand on their own feet. Rather, they can no longer afford to splash money around. They are under enormous pressure to bring spending into line with revenue. If funding for the ethanol industry is maintained, there will be less available for schools, hospitals, roads and bridges.
This situation will persist for quite a few years. The US and EU budget problems are too big to be solved quickly, and neither has yet made a serious start anyway. Australia’s debt is lower, but not insignificant. Unless there is a big breakthrough in production costs, ethanol has no future as a major fuel.
The case for greater energy self-sufficiency may have some merit, but ethanol is not the way to achieve it. Australia has vast quantities of coal and natural gas (both conventional and unconventional), plus potential for additional hydro power. On the other hand, it does not have limitless land on which to grow food. Nor does it have enough taxpayers to fund uncompetitive dreams. It is good that ethanol’s best days are over.
David Leyonhjelm is an agribusiness consultant with Baron Strategic Services. He may be contacted atreclaimfreedom@gmail.com


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

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

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

By Karen Caffarini Post-Tribune correspondent June 25, 2012 4:14PM

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"

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 warranty!  E-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.