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UPDATE 1-Struggling ethanol makers diversify to corn oil
"Pete" Landry..........comments welcome at way2gopete@yahoo.com
Powers Energy garbage-to-ethanol plant takes a few steps forward
By Carrie Napoleon Post-Tribune correspondent March 29, 2012 4:06PM
LOWELL — Plans for the proposed $330 million Powers Energy trash-to-ethanol plant in Schneider appear to be gaining some momentum.
Powers Energy and the landowner are expected to reach a deal on a purchase agreement in about a week. Powers is also in negotiations with a major oil company that has an interest in purchasing all the ethanol produced at the site, as well as becoming an equity partner in the project, a project representative said.
Members of the Council of Northwestern Indiana Towns and Smaller Cities were updated on progress with the project Thursday at the Lowell Town Hall during their regular meeting. Schneider Town Council President Richard Ludlow and Ed Cleveland, a representative from the local construction conglomerate partner in the project, provided details on the latest activities surrounding the trash-to-ethanol plant first proposed in 2008.
“We are very excited about the fact that a major oil company wants to buy the ethanol and wants to be an equity partner,” Cleveland said.
Equity had been an issue with funding in the past. Two prior attempts to establish funding fell through in part because the building was to be owned by the Lake County Solid Waste Management District and outside factors on the economy including the economic troubles in Greece in Italy and the tsunami in Japan.
Since then a new contract has been established giving ownership of the facility to Powers, which allows the company to use it as equity in funding attempts. That has helped to move a third funding attempt forward.
That new contract means Powers will need to obtain new commitments from municipalities that want to take advantage of the $17.50 a ton tipping rate when the plant comes online.
Cleveland said the company is also in the process of responding to a breach of contract suit by the Lake County Solid Waste Management District. Powers has until April 2 to respond to the filing and Cleveland said project organizers are hopeful they will be granted an extension.
Ludlow said the Schneider Town Council is taking the necessary steps to keep the project moving forward short of agreeing to any type of tax abatement. Ludlow said Powers has not sought any tax abatements and will be taxed at full rate on the project.
He said the Schneider Town Council Monday approved the rezoning of the land where the project is expected to be built from agricultural to industrial. Town officials also signed the tipping commitment letter and forwarded that to Powers. About half of the Lake County communities have resubmitted the commitment letters, he said.
Christopher Helman - Forbes
4/03/2012 @ 3:38PM |24,863 views
This year American motorists will burn through 14 billion gallons of ethanol, the end product of 5 billion bushels of corn—a third of the U.S. crop—grown on 33 million acres of farmland. It arguably cuts pollution coming out of U.S. tailpipes, but at a huge cost. Since 2005, when Congress required that ethanol be added to your gas tank, U.S. corn prices have tripled.
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"Pete" Landry...........comments welcome .........at.............way2gopete@yahoo.com
Gasoline could go from 10% ethanol up to 20%
Updated 3/5/2008 11:13 AM
By James R. Healey, USA TODAY
WASHINGTON — Key backers of ethanol fuel are starting a push to double the amount of ethanol commonly blended with gasoline to 20%. The move would boost the market for grain alcohol, while skirting problems and controversy surrounding E85, an 85% ethanol fuel.
Blending ethanol — alcohol typically now made from corn — into gasoline is a way to cut petroleum use. A 10% ethanol blend, called E10, now is standard at many gasoline pumps across the USA. It can be used by virtually all gasoline vehicles, which is not true of the E85 being promoted as a fuel of the future.
(Read full article here: http://www.usatoday.com/money/autos/environment/2008-03-04-e20-ethanol-fuel_N.htm)
Studies by the University of Minnesota and Minnesota State University at Mankato suggest that ordinary vehicles could burn a mix of 20% ethanol, called E20, as routinely and harmlessly as they now burn E10. Minnesota Gov. Tim Pawlenty is to announce the study results at a conference here today.
"We see E20 not exactly as bypassing E85, but supplementing it," says Gene Hugoson, Minnesota agriculture commissioner.
A separate study, commissioned by the Renewable Fuels Association and not yet finished, will assess the environmental impact of doubling the alcohol.
Minnesota law requires 20% of fuel used be ethanol within a few years, making the matter more urgent there than elsewhere. The mandate could be satisfied if enough motorists burn E85 to raise the average to 20% — or if E20 replaces E10 as the state's standard fuel.
Hitting the state's goal, as well as boosting U.S. ethanol use as much as the industry hopes, "will take awhile" relying on E85, Hugoson says. E85 availability remains limited mainly to the Midwest. It is potentially corrosive, making it hard to ship in pipelines and requiring special fuel system parts in vehicles. E85 also has far less energy than gasoline, so it takes more to go the same distance.
For E20 to become a legal fuel, however, it would need U.S. Environmental Protection Agency approval.
Automakers also have doubts that it is as benign as E10. They are running trials, but they say they do not have enough data on how risky E20 is to components and whether it would change emissions in unwanted ways.
"Our vehicles are able to handle E10, but to move to E20 there are technical issues. It's not that simple," says Ford Motor (F) spokeswoman Kristen Kinley.
General Motors (GM) spokesman Alan Adler says that in E20 tests in Australia, "40% of the vehicles sustained (catalytic converter) damage, which allowed essentially unchecked tailpipe emissions."
"We believe there's not data sufficient to prove that all vehicles will function OK with E20," says Reg Modlin, director of environmental affairs for Chrysler. "It's not a legal fuel, and it would void the warranty."
EPA Approves First Applications for Registration of Ethanol to Make E15
Agency approves first applications for registration of ethanol to make E15
WASHINGTON-–April 2, 2012: The U.S. Environmental Protection Agency (EPA) approved the first applications for registration of ethanol for use in making gasoline that contains up to 15 percent ethanol -- known as E15. Ethanol is a renewable fuel that can be mixed with gasoline. For over 30 years ethanol has been blended into gasoline, but the law limited it to 10 percent by volume for use in gasoline-fueled vehicles. Registration of ethanol to make E15 is a significant step toward its production, sale, and use in model year 2001 and newer gasoline-fueled cars and light trucks.
To enable widespread use of E15, the Obama Administration has set a goal to help fueling station owners install 10,000 blender pumps over the next 5 years. In addition, both through the Recovery Act and the 2008 Farm Bill, the U.S. Department of Energy (DOE) and U.S. Department of Agriculture have provided grants, loans and loan guarantees to spur American ingenuity on the next generation of biofuels.
Today's action follows an extensive technical review required by law. Registration is a prerequisite to introducing E15 into the marketplace. Before it can be sold, manufactures must first take additional measures to help ensure retail stations and other gasoline distributors understand and implement labeling rules and other E15-related requirements. EPA is not requiring the use or sale of E15.
Ethanol is considered a renewable fuel because it is generally produced from plant products or wastes and not from fossil fuels. Ethanol is blended with gasoline for use in most areas across the country. After extensive vehicle testing by DOE and other organizations, EPA issued two partial waivers raising the allowable ethanol volume to 15 percent for use in model year 2001 and newer cars and light trucks.
E15 is not permitted for use in motor vehicles built prior to 2001 model year and in off-road vehicles and equipment such as boats and lawn and garden equipment. Gas pumps dispensing E15 will be clearly labeled so consumers can make the right choice.