Showing posts with label ethanol. Show all posts
Showing posts with label ethanol. Show all posts
Tuesday, March 24, 2015
Friday, August 17, 2012
Ethanol Quota Debated by Corn Farmers and Meat Industry
The following is
an excerpt from an article in
The New York Times
Friday, August 17, 2012
Ethanol Quota Debated by Corn Farmers and Meat Industry
By JOHN H. CUSHMAN Jr.
WASHINGTON — Three big intertwined but rival agribusinesses — corn farmers, meat and poultry producers, and biofuel refineries — are in a political fight to protect their interests as a drought ravages corn producers and industrial consumers alike.
At issue is whether to suspend a five-year-old federal mandate requiring more ethanol in gasoline each year, a policy that has diverted almost half of the domestic corn supply from animal feedlots to ethanol refineries, driven up corn prices and plantings and created a desperate competition for corn as drought grips the nation’s farm belt.
Meat producers are demanding that the Obama administration waive the ethanol quota to ease rising feed prices. But ethanol producers worry that the loss of the quota will undermine the ethanol industry and do little for corn farmers but drive down the price of their stunted harvest.
The meat industry, backed by several governors, lawmakers and even international food agencies, argues that the quota has distorted grain markets by sucking up corn when ranchers can least afford it.
But the ethanol industry says that its corn consumption is down 12 percent since the start of the summer and that weekly ethanol production is at a two-year low. As corn prices have risen, refineries have scaled back production, idled dozens of plants and sold ethanol inventories. As a result, the industry may consume 10 percent less of this summer’s crop than last year’s, government and industry officials said.
“The market is already responding to the reality of this drought,” said Agriculture Secretary Tom Vilsack, a former Iowa governor who supports the quota, citing the recent decline in ethanol production.
Meat and poultry producers countered that the government was still “picking winners and losers,” and urged the Obama administration to “let the market work and embrace free market principles,” as J. D. Alexander, president of the National Cattlemen’s Beef Association, put it when he announced a petition to waive the quota two weeks ago.
For more, visit www.nytimes.com.
Wednesday, August 1, 2012
The Renewable Fuels Standard, Ethanol, and the U.S. Corn Crop
Press release:
For Immediate Release
August 1, 2012
August 1, 2012
The Renewable Fuels Standard, Ethanol, and the U.S. Corn Crop
Mr. President,
The President and CEO of Smithfield Foods, Larry Pope, took to the opinion pages of the Wall Street Journal again to blame all that ails him on the Renewable Fuels Standard.
Some may recall that he did the same thing back in April of 2010 when commodity prices were rising. At that time, he perpetuated a smear campaign and blamed ethanol in an attempt to deflect blame for rising food prices while boosting Smithfield’s profits. And now he’s at it again.
I may start referring to Mr. Pope as Henny Penny from the children’s folk tale Chicken Little. Every time Smithfield has to pay a little more to America’s corn farmers to feed his hogs, Mr. Pope starts up with the same argument that the sky is falling and it’s all ethanol’s fault.
Mr. Pope’s opinion piece in the Wall Street Journal might lead some to believe that he’s very knowledgeable about the ethanol industry. But there are many areas where he’s not. He continues to perpetuate the myth that ethanol production consumes 40 percent of the U.S. corn crop. Mr. Pope states, “ethanol now consumes more corn than animal agriculture does.”
Everyone with a basic understanding of a livestock farm, a corn kernel or an ethanol plant knows that’s not true. According to USDA, 37 percent of the corn supply is used in producing ethanol. But the value of the corn does not simply vanish when ethanol is produced. One-third of the corn re-enters the market as a high value animal feed called dried distillers grains.
I would imagine that millions of hogs raised by Smithfield every year are fed a diet containing this ethanol co-product. Mr. Pope appears unaware of its existence. When the distillers’ grains are factored in, 43 percent of the corn supply is available for animal feed. Only 28 percent is used for ethanol.
This is the inconvenient truth for ethanol detractors. They prefer to live in a bubble where they believe that ethanol is diverting corn from livestock use. That’s just not the case.
Mr. Pope also proclaims, “Ironically, if the ethanol mandate did not exist, even this year’s drought-depleted corn crop would have been more than enough to meet the requirements for livestock feed and food production at decent prices.”
I’d like to ask Mr. Pope, why do you think that is? Why did farmers plant 96 million acres of corn this year? Why have seed producers spent millions to develop better yielding and drought resistant traits? The answer is simple: Ethanol.
If not for ethanol, farmers wouldn’t have planted 96 million acres of corn this year. Without ethanol, I doubt we’d have seen investment in higher yielding and more drought tolerant corn plants.
I’m sure Mr. Pope is an intelligent man. But he’s woefully uninformed on the issue of what the ethanol industry and the demand for corn has done for the size and genetic improvement of the corn crop.
It’s easy to understand Smithfield’s motive. They benefit from an abundant supply of corn, just not the competing demand for it. What is Smithfield’s primary problem? Again, the answer is simple: cost and profit. They still want to pay $2 for a bushel of corn.
This is an important point that I hope people understand. For nearly 30 years, until about 2005, companies like Smithfield had the luxury of buying corn below the cost of production. Corn prices remained at about $1.50 to $3.00 a bushel for nearly 30 years. Farmers routinely lost money.
The federal government then provided economic support for the farmers. Producers like Smithfield had the best of both worlds. They were able to buy corn below the cost of production, and let the federal government subsidize their business by guaranteeing a cheap supply of corn.
In the view corporate livestock producers, subsidies are just fine if they allow them to buy corn below the cost of production. Anybody could look like a genius with that business model.
Mr. Pope also continues to overstate the impact of corn prices on the consumer. Agriculture Secretary Vilsack recently stated that farmers receive about 14 cents of every dollar spent on food at the grocery store. Of that, about three cents is the value of the corn costs.
A research economist at the USDA recently stated that a 50-percent increase in the price of corn will raise the total grocery shopping bill by about one percent. To put it in perspective, the value of corn in a four-dollar box of corn flakes is about ten cents.
Mr. Pope also exaggerated the impact of ethanol on food prices in 2010, and he’s doing it again today. He’s using the devastating drought to once again undermine our nation’s food, feed and fuel producers. And he’s doing it to make more money.
Repealing the Renewable Fuels standard won’t bolster Smithfield’s profits. Because of the flexibility built into the renewable fuels mandate, a waiver won’t significantly reduce corn prices.
A recent study by Professor Bruce Babcock at Iowa State University found that a complete waiver of the Renewable Fuels Standard might reduce corn prices by only 4.6 percent. The report states, “The desire by livestock groups to see additional flexibility in ethanol mandates may not result in as large a drop in feed costs as hoped.” And, “…the flexibility built into the Renewable Fuels Standard allowing obligated parties to carry over blending credits from previous years significantly lowers the economic impacts of a short crop, because it introduces flexibility into the mandate.”
The drought is enormous in both scale and severity. But we won’t know the true impact until September, when the harvest begins. The latest estimates from USDA indicate an average yield of 146 bushels per acre. That would result in a harvest of 13 billion bushels. This would still be one of the largest corn harvests.
I would suggest that those claiming the sky is falling withhold their call for waiving or repealing the Renewable Fuels Standard. It’s a premature action that will not produce the desired result. And it would increase our dependence on foreign oil and drive up prices at the pump for consumers.
The President and CEO of Smithfield Foods, Larry Pope, took to the opinion pages of the Wall Street Journal again to blame all that ails him on the Renewable Fuels Standard.
Some may recall that he did the same thing back in April of 2010 when commodity prices were rising. At that time, he perpetuated a smear campaign and blamed ethanol in an attempt to deflect blame for rising food prices while boosting Smithfield’s profits. And now he’s at it again.
I may start referring to Mr. Pope as Henny Penny from the children’s folk tale Chicken Little. Every time Smithfield has to pay a little more to America’s corn farmers to feed his hogs, Mr. Pope starts up with the same argument that the sky is falling and it’s all ethanol’s fault.
Mr. Pope’s opinion piece in the Wall Street Journal might lead some to believe that he’s very knowledgeable about the ethanol industry. But there are many areas where he’s not. He continues to perpetuate the myth that ethanol production consumes 40 percent of the U.S. corn crop. Mr. Pope states, “ethanol now consumes more corn than animal agriculture does.”
Everyone with a basic understanding of a livestock farm, a corn kernel or an ethanol plant knows that’s not true. According to USDA, 37 percent of the corn supply is used in producing ethanol. But the value of the corn does not simply vanish when ethanol is produced. One-third of the corn re-enters the market as a high value animal feed called dried distillers grains.
I would imagine that millions of hogs raised by Smithfield every year are fed a diet containing this ethanol co-product. Mr. Pope appears unaware of its existence. When the distillers’ grains are factored in, 43 percent of the corn supply is available for animal feed. Only 28 percent is used for ethanol.
This is the inconvenient truth for ethanol detractors. They prefer to live in a bubble where they believe that ethanol is diverting corn from livestock use. That’s just not the case.
Mr. Pope also proclaims, “Ironically, if the ethanol mandate did not exist, even this year’s drought-depleted corn crop would have been more than enough to meet the requirements for livestock feed and food production at decent prices.”
I’d like to ask Mr. Pope, why do you think that is? Why did farmers plant 96 million acres of corn this year? Why have seed producers spent millions to develop better yielding and drought resistant traits? The answer is simple: Ethanol.
If not for ethanol, farmers wouldn’t have planted 96 million acres of corn this year. Without ethanol, I doubt we’d have seen investment in higher yielding and more drought tolerant corn plants.
I’m sure Mr. Pope is an intelligent man. But he’s woefully uninformed on the issue of what the ethanol industry and the demand for corn has done for the size and genetic improvement of the corn crop.
It’s easy to understand Smithfield’s motive. They benefit from an abundant supply of corn, just not the competing demand for it. What is Smithfield’s primary problem? Again, the answer is simple: cost and profit. They still want to pay $2 for a bushel of corn.
This is an important point that I hope people understand. For nearly 30 years, until about 2005, companies like Smithfield had the luxury of buying corn below the cost of production. Corn prices remained at about $1.50 to $3.00 a bushel for nearly 30 years. Farmers routinely lost money.
The federal government then provided economic support for the farmers. Producers like Smithfield had the best of both worlds. They were able to buy corn below the cost of production, and let the federal government subsidize their business by guaranteeing a cheap supply of corn.
In the view corporate livestock producers, subsidies are just fine if they allow them to buy corn below the cost of production. Anybody could look like a genius with that business model.
Mr. Pope also continues to overstate the impact of corn prices on the consumer. Agriculture Secretary Vilsack recently stated that farmers receive about 14 cents of every dollar spent on food at the grocery store. Of that, about three cents is the value of the corn costs.
A research economist at the USDA recently stated that a 50-percent increase in the price of corn will raise the total grocery shopping bill by about one percent. To put it in perspective, the value of corn in a four-dollar box of corn flakes is about ten cents.
Mr. Pope also exaggerated the impact of ethanol on food prices in 2010, and he’s doing it again today. He’s using the devastating drought to once again undermine our nation’s food, feed and fuel producers. And he’s doing it to make more money.
Repealing the Renewable Fuels standard won’t bolster Smithfield’s profits. Because of the flexibility built into the renewable fuels mandate, a waiver won’t significantly reduce corn prices.
A recent study by Professor Bruce Babcock at Iowa State University found that a complete waiver of the Renewable Fuels Standard might reduce corn prices by only 4.6 percent. The report states, “The desire by livestock groups to see additional flexibility in ethanol mandates may not result in as large a drop in feed costs as hoped.” And, “…the flexibility built into the Renewable Fuels Standard allowing obligated parties to carry over blending credits from previous years significantly lowers the economic impacts of a short crop, because it introduces flexibility into the mandate.”
The drought is enormous in both scale and severity. But we won’t know the true impact until September, when the harvest begins. The latest estimates from USDA indicate an average yield of 146 bushels per acre. That would result in a harvest of 13 billion bushels. This would still be one of the largest corn harvests.
I would suggest that those claiming the sky is falling withhold their call for waiving or repealing the Renewable Fuels Standard. It’s a premature action that will not produce the desired result. And it would increase our dependence on foreign oil and drive up prices at the pump for consumers.
Thursday, March 15, 2012
News Release from POET - Project LIBERTY
A celebration of full-scale construction of Project LIBERTY
POET-DSM Advanced Biofuels hold formal groundbreaking for cellulosic ethanol plant
3/13/2012
EMMETSBURG, Iowa -- POET-DSM Advanced Biofuels today celebrated the start of full-scale construction on Project LIBERTY with a formal groundbreaking ceremony in Emmetsburg, Iowa.
Representatives from POET-DSM Advanced Biofuels as well as government leaders including Iowa Gov. Terry Branstad met this morning to announce the groundbreaking. A formal ceremony took place later at the site, which is adjacent to POET Biorefining -- Emmetsburg.
Project LIBERTY is a planned commercial cellulosic ethanol plant that will use corn cobs, leaves, husk and some stalk to produce ethanol. It is scheduled to open in 2013. A 22-acre stackyard is completed, and the company has done preliminary site work in advance of the formal start of full construction.
The groundbreaking marked a significant milestone in the company's quest to be one of the first to commercialize cellulosic ethanol, POET President Jeff Lautt said. It's the next step in an effort that has spanned more than a decade.
"POET has been a leader in growing the corn ethanol industry to approximately 10 percent of America's automobile fuel supply," Lautt said. "Right here in Emmetsburg, we want to build on that foundation and develop another renewable, domestic alternative to foreign oil, something we believe America needs."
Stephan Tanda, Member of the Managing Board of Royal DSM, introduced DSM to the Emmetsburg community and commented: "DSM is a living example of the transformation from a petroleum based economy to a bio-based economy. By joining forces with innovative growers and entrepreneurs right here in Iowa we all together are pioneering new value chains that produce fuel and eventually also chemicals and advanced materials from sustainable, renewable resources."
POET and Royal DSM entered into a joint-venture agreement in January to form POET-DSM Advanced Biofuels. The two companies each hold a 50 percent share in the joint venture.
Gov. Branstad said the state of Iowa is well-positioned to build on its strength in biofuels production.
"This groundbreaking today is a great example of a project that leverages Iowa's unique strength in agriculture and renewable fuels production to create another new product for the renewable energy marketplace," Branstad said. "Iowa's biofuels industries have added $6 billion to Iowa's economy, generated $3.7 billion in household income and created and supported 82,000 Iowa jobs. The regional economic benefits of this project are significant. This is a facility that will require highly-skilled workers and create high-paying jobs."
While construction is underway, POET-DSM Advanced Biofuels continues to establish the feedstock logistics for processing approximately 770 dry tons per day of corn cobs, leaves, husks and some stalk at the plant during full scale operations. Many farmers in attendance played a part in harvesting 61,000 tons of biomass for Project LIBERTY last fall. That work will continue during the 2012 harvest season.
About POET-DSM Advanced Biofuels, LLC
POET-DSM Advanced Biofuels, LLC, is a 50/50 joint venture between Royal DSM and POET, LLC. Based in Sioux Falls, South Dakota, the company is a cooperative effort of two innovators that provides a key to unlocking the opportunity of converting corn crop residue into cellulosic bio-ethanol. Built on the strengths of both companies the joint venture has a critical mission: to make cellulosic bio-ethanol competitive with corn ethanol, the most competitive renewable liquid transportation fuel on the US market today. Drawing on the deep expertise and experience of POET and DSM in different areas of converting cellulosic biomass into ethanol, POET - DSM Advanced Biofuels will have its first commercial-scale plant co-located with POET' Biorefining -- Emmetsburg in Emmetsburg, Iowa. Based on this plant the JV plans to globally license an integrated technology package for the conversion of corn crop residue to cellulosic bio-ethanol. More information: www.poetdsm.com
# # #
Representatives from POET-DSM Advanced Biofuels as well as government leaders including Iowa Gov. Terry Branstad met this morning to announce the groundbreaking. A formal ceremony took place later at the site, which is adjacent to POET Biorefining -- Emmetsburg.
Project LIBERTY is a planned commercial cellulosic ethanol plant that will use corn cobs, leaves, husk and some stalk to produce ethanol. It is scheduled to open in 2013. A 22-acre stackyard is completed, and the company has done preliminary site work in advance of the formal start of full construction.
The groundbreaking marked a significant milestone in the company's quest to be one of the first to commercialize cellulosic ethanol, POET President Jeff Lautt said. It's the next step in an effort that has spanned more than a decade.
"POET has been a leader in growing the corn ethanol industry to approximately 10 percent of America's automobile fuel supply," Lautt said. "Right here in Emmetsburg, we want to build on that foundation and develop another renewable, domestic alternative to foreign oil, something we believe America needs."
Stephan Tanda, Member of the Managing Board of Royal DSM, introduced DSM to the Emmetsburg community and commented: "DSM is a living example of the transformation from a petroleum based economy to a bio-based economy. By joining forces with innovative growers and entrepreneurs right here in Iowa we all together are pioneering new value chains that produce fuel and eventually also chemicals and advanced materials from sustainable, renewable resources."
POET and Royal DSM entered into a joint-venture agreement in January to form POET-DSM Advanced Biofuels. The two companies each hold a 50 percent share in the joint venture.
Gov. Branstad said the state of Iowa is well-positioned to build on its strength in biofuels production.
"This groundbreaking today is a great example of a project that leverages Iowa's unique strength in agriculture and renewable fuels production to create another new product for the renewable energy marketplace," Branstad said. "Iowa's biofuels industries have added $6 billion to Iowa's economy, generated $3.7 billion in household income and created and supported 82,000 Iowa jobs. The regional economic benefits of this project are significant. This is a facility that will require highly-skilled workers and create high-paying jobs."
While construction is underway, POET-DSM Advanced Biofuels continues to establish the feedstock logistics for processing approximately 770 dry tons per day of corn cobs, leaves, husks and some stalk at the plant during full scale operations. Many farmers in attendance played a part in harvesting 61,000 tons of biomass for Project LIBERTY last fall. That work will continue during the 2012 harvest season.
About POET-DSM Advanced Biofuels, LLC
POET-DSM Advanced Biofuels, LLC, is a 50/50 joint venture between Royal DSM and POET, LLC. Based in Sioux Falls, South Dakota, the company is a cooperative effort of two innovators that provides a key to unlocking the opportunity of converting corn crop residue into cellulosic bio-ethanol. Built on the strengths of both companies the joint venture has a critical mission: to make cellulosic bio-ethanol competitive with corn ethanol, the most competitive renewable liquid transportation fuel on the US market today. Drawing on the deep expertise and experience of POET and DSM in different areas of converting cellulosic biomass into ethanol, POET - DSM Advanced Biofuels will have its first commercial-scale plant co-located with POET' Biorefining -- Emmetsburg in Emmetsburg, Iowa. Based on this plant the JV plans to globally license an integrated technology package for the conversion of corn crop residue to cellulosic bio-ethanol. More information: www.poetdsm.com
# # #
Saturday, February 25, 2012
News Release from Illinois EPA
| FOR IMMEDIATE RELEASE February 23, 2012 |
Oak Park—The Illinois EPA, in coordination with the Chicago Area Clean Cities coalition, designated 15 new Chicago area Green Fleets at an event held today in Oak Park. The Illinois Green Fleets program provides for “Green Environment, Green Energy, & Green Economics for a Green Illinois,” through the use of clean alternate fuels, such as natural gas, biodiesel, ethanol, propane and electricity in their fleet vehicles, as well as retrofiting existing diesel trucks with clean technology options to reduce diesel particulates. Information regarding the program can be found at http://www.illinoisgreenfleets.org/. “These are family-owned and larger businesses, as well as public bodies, that have seen the value in supporting clean air, energy independence, jobs and providing insurance against the concern about high prices for gasoline and diesel,” said Interim Illinois EPA Director John Kim. “These new Green Fleets join an elite fraternity of over 100 designated fleets throughout the state. We see more and more family-owned small businesses that are taking the initiative to purchase and convert their vehicles and equipment to run on a clean American fuel,” said Darwin Burkhart, program manager for the Illinois EPA and Chairman of Chicago Area Clean Cities. The 15 new Illinois Green Fleets are: Abt Electronics, a family-owned electronics and appliance store based in Glenview, uses biodiesel in its diesel truck fleet and has 30 vans that use E85 ethanol fuel and two vans that run on natural gas. In addition, the Abt family installed diesel oxidation catalysts on eight diesel delivery trucks to further reduce particulate emissions. Groot Industries, a family operated waste hauler based in Elk Grove Village, has 33 refuse trucks that run on natural gas and has installed two natural gas refueling stations to share with other fleets. Other waste companies being recognized are Waste Management in Wheeling and Veolia ES Solid Waste in Northbrook with 33 and 20 natural gas refuse trucks, respectively. Competitive Lawn Service, a small commercial lawn business in Downers Grove, is the first lawn and landscaping business in the country to convert many of its pickup trucks and mower equipment to propane. Doreen’s Pizzeria, a family-owned business in Calumet City, has seven natural gas-powered delivery trucks that display “Green Pizza Machines” on the sides of the vehicles. Ozinga Ready Mix, a family-owned business in Mokena, is believed to be the first concrete company in the country to convert 14 of its mixing trucks to run on natural gas. SCR Medical Transportation, a family run paratransit service in the Chicago area, operates 20 natural gas vans and shuttles for people needing mobility assistance. In addition, GO Airport Express operates two propane and two natural gas-powered shuttle vans and Yellow Cab Chicago has 79 natural gas taxis; both companies operate from O’Hare and Midway airports. Other Green Fleets that are being acknowledged at the event are Northern Illinois University in DeKalb that uses E85, biodiesel, natural gas, and hybrid vehicles in many of its trucks, buses, campus police cars, and other campus vehicles and equipment; Chicago Park District that has E85, biodiesel, natural gas, hybrids and electric vehicles; Dillon Transport of Burr Ridge that uses E85 in the company’s flex fuel vehicles; Foodliner of Franklin Park that operates six Freightliner trucks on natural gas; and the DuPage County Division of Transportation that has nearly half its fleet running on E85, biodiesel, natural gas and electricity. ### | |
Friday, February 17, 2012
Ag Under Secretary Hosts SD Mtg on Renewable Energy Funding
This afternoon, USDA Rural Development in South Dakota convened a Rural Energy for America Program (REAP) meeting in Sioux Falls. Rural Development Under Secretary Dallas Tonsager addressed the group of 25 stakeholders. Tonsager shared with the group that over the next couple of months, USDA Rural Development will be convening a total of 47 energy roundtables with stakeholders across the country to talk about energy opportunities.
“Our country is moving more and more toward renewable energy sources,” stated Tonsager. “Those of us at USDA want to stand up that renewable energy industry in America’s rural backyard, and we want to work with all of you to make it happen.”
South Dakota has shown its strength in the renewable energy arena with hydro and wind power. These projects create a win-win situation. They’re good for the environment; they reduce our reliance on foreign oil; and they’re good for the economy.
The group also heard from past REAP recipient and Senior Vice President of American Coalition for Ethanol Ron V. Lamberty. The American Coalition for Ethanol (ACE) is the grassroots voice of the U.S. ethanol industry, the nation’s largest association dedicated to the production and use of ethanol.
ACE is a non-profit, membership-based organization of more than 1,500 members nationwide, including: ethanol producers, farmers, investors, the agriculture community, industry suppliers, rural electric cooperatives, and others supportive of the increased production and use of ethanol across America.
In conjunction with the meeting, Under Secretary Tonsager and South Dakota State Director Elsie Meeks awarded Jackson Winery and Vineyards, L.L.C. dba Belle Joli’ Winery with a business assistance grant funded through the Value Added Producer Grant program. Co-owner Matthew Jackson and his wife Choi were on-site for the presentation. The working capital grant will allow the business to expand and tap into new markets for its products and services.
On Saturday, February 18, Tonsager will participate in the South Dakota Farmer’s Union Convention held in Huron. He will provide an update on the work Rural Development is doing to ensure that our rural communities are strong and sustainable now and well into the future. USDA remains committed to rebuilding and revitalizing rural America.
Thursday, February 9, 2012
Quebec's First Waste-to-Biofuels Facility
News release from Enerkem:
Enerkem and GreenField Ethanol Announce Quebec's First Waste-to-Biofuels Production Facility
VARENNES, Québec, February 6, 2012 – At a news conference in Varennes today, the
Government of Québec announced its plan to inject $27 million in Québec’s first
full-scale commercial cellulosic ethanol plant through the Ministry of Natural Resources
and Wildlife and Investissement Québec. This facility will be built and operated by a
joint venture partnership formed by Enerkem (www.enerkem.com), a waste-to-biofuels
and chemicals company, and GreenField Ethanol (www.greenfieldethanol.com), the
Canadian leader in alcohol production.
The future plant will be located in Varennes, Québec and will use Enerkem’s proprietary
technology to convert non-recyclable municipal solid waste into biofuels. With a
full-scale waste-to-biofuels facility under construction in Edmonton, Alberta, and another
one under development in Mississippi, the Varennes facility represents Enerkem’s third
full-scale commercial project.
"By producing liquid transportation fuel from non-recyclable waste, this facility opens the
door to the emergence of a new energy sector and will allow for local sustainable
management of our waste materials", declared Vincent Chornet, Enerkem President
and CEO. "Located on the site of Ethanol GreenField's current plant, this project will
represent one of the first integrations between an existing, first generation ethanol plant
and a new cellulosic ethanol plant."
"The construction of this innovative plant on our current site marks the beginning of our
transition to an integrated biorefinery in Varennes", said Jean Roberge, General
Manager, GreenField Ethanol Québec. "We are pleased to partner with Enerkem and
integrate their technology to build Québec’s first full-scale commercial cellulosic ethanol
plant. The use of waste materials, that is made possible with Enerkem's technology,
complements GreenField Ethanol R&D efforts with other types of biomass. "This waste-to-biofuels production facility will help reduce greenhouse emissions, fossil
fuel imports and landfilled volumes. The non-recyclable waste will come from
institutional, commercial and industrial sectors, and from construction and demolition
debris. The anticipated annual production capacity of this plant is approximately
38 million litres.
"In addition to presenting a solution to landfilling, today's announcement will enable
greenhouse gas emission reductions by about 110,000 metric tons of CO2 per year.
Cellulosic ethanol is a renewable fuel that will contribute to reducing our dependence on
petroleum products. By supporting this project, our government is concretely reinforcing
energy security for Québec. Today's announcement puts Québec in an advantageous
position in the search for alternatives to fossil fuel consumption", outlined Minister
Clément Gignac.
"Québec has resolved to reduce, by 2020, its greenhouse gas emissions to 20% below
1990 levels, as part of its 2006-2012 Climate Change Action Plan. We believe we can
be productive and create wealth and jobs, all while protecting our environment. The
construction of the cellulosic ethanol facility belonging to the joint venture formed by
Enerkem and GreenField Ethanol, is one step closer towards reducing our greenhouse
gas emissions. It is with solid and structured projects, such as the one presented today,
that Québec will reassert its leadership in a green and sustainable economy",
commented Minister Sam Hamad.
The $27 million contribution from the Government of Québec includes $18 million in
financial assistance from the Ministry of Natural Resources and Wildlife and a $9 million
loan from Investissement Québec.
Enerkem and GreenField Ethanol Announce Quebec's First Waste-to-Biofuels Production Facility
VARENNES, Québec, February 6, 2012 – At a news conference in Varennes today, the
Government of Québec announced its plan to inject $27 million in Québec’s first
full-scale commercial cellulosic ethanol plant through the Ministry of Natural Resources
and Wildlife and Investissement Québec. This facility will be built and operated by a
joint venture partnership formed by Enerkem (www.enerkem.com), a waste-to-biofuels
and chemicals company, and GreenField Ethanol (www.greenfieldethanol.com), the
Canadian leader in alcohol production.
The future plant will be located in Varennes, Québec and will use Enerkem’s proprietary
technology to convert non-recyclable municipal solid waste into biofuels. With a
full-scale waste-to-biofuels facility under construction in Edmonton, Alberta, and another
one under development in Mississippi, the Varennes facility represents Enerkem’s third
full-scale commercial project.
"By producing liquid transportation fuel from non-recyclable waste, this facility opens the
door to the emergence of a new energy sector and will allow for local sustainable
management of our waste materials", declared Vincent Chornet, Enerkem President
and CEO. "Located on the site of Ethanol GreenField's current plant, this project will
represent one of the first integrations between an existing, first generation ethanol plant
and a new cellulosic ethanol plant."
"The construction of this innovative plant on our current site marks the beginning of our
transition to an integrated biorefinery in Varennes", said Jean Roberge, General
Manager, GreenField Ethanol Québec. "We are pleased to partner with Enerkem and
integrate their technology to build Québec’s first full-scale commercial cellulosic ethanol
plant. The use of waste materials, that is made possible with Enerkem's technology,
complements GreenField Ethanol R&D efforts with other types of biomass. "This waste-to-biofuels production facility will help reduce greenhouse emissions, fossil
fuel imports and landfilled volumes. The non-recyclable waste will come from
institutional, commercial and industrial sectors, and from construction and demolition
debris. The anticipated annual production capacity of this plant is approximately
38 million litres.
"In addition to presenting a solution to landfilling, today's announcement will enable
greenhouse gas emission reductions by about 110,000 metric tons of CO2 per year.
Cellulosic ethanol is a renewable fuel that will contribute to reducing our dependence on
petroleum products. By supporting this project, our government is concretely reinforcing
energy security for Québec. Today's announcement puts Québec in an advantageous
position in the search for alternatives to fossil fuel consumption", outlined Minister
Clément Gignac.
"Québec has resolved to reduce, by 2020, its greenhouse gas emissions to 20% below
1990 levels, as part of its 2006-2012 Climate Change Action Plan. We believe we can
be productive and create wealth and jobs, all while protecting our environment. The
construction of the cellulosic ethanol facility belonging to the joint venture formed by
Enerkem and GreenField Ethanol, is one step closer towards reducing our greenhouse
gas emissions. It is with solid and structured projects, such as the one presented today,
that Québec will reassert its leadership in a green and sustainable economy",
commented Minister Sam Hamad.
The $27 million contribution from the Government of Québec includes $18 million in
financial assistance from the Ministry of Natural Resources and Wildlife and a $9 million
loan from Investissement Québec.
Wednesday, January 25, 2012
POET & DSM to Make Advanced Biofuels a Reality by 2013
News release from POET, major ethanol producer:
1/23/2012
POET, LLC, one of the world's largest ethanol producers, and Royal DSM, the global Life Sciences and Materials Sciences company, today announce a joint venture to commercially demonstrate and license cellulosic bio-ethanol, the next step in the development of biofuels, based on their proprietary and complementary technologies. POET-DSM Advanced Biofuels, LLC, is scheduled to start production in the second half of 2013 at one of the first commercial-scale cellulosic ethanol plants in the United States.
The two partners will produce cellulosic ethanol from corn crop residue through a biological process using enzymatic hydrolysis followed by fermentation. The first commercial demonstration of the technology will be at Project Liberty, which is currently being constructed adjacent to POET's existing corn ethanol plant in Emmetsburg, Iowa. The initial capacity is expected to be 20 million gallons in the first year, growing to approximately 25 million gallons per year.
POET-DSM Advanced Biofuels, LLC, intends to replicate and license the technology to additional plants to be built at the other 26 corn ethanol facilities in POET's network and license it to other producers in the United States and the rest of the world. The U.S. Environmental Protection Agency (EPA) estimates that in the United States as many as 350-400 new bio-refineries will have to be constructed by 2022 to meet the volume requirement of 16 billion gallons/year of cellulosic bio-ethanol under the Renewable Fuel Standard.
DSM and POET will each hold a 50% share in the joint venture, which will be headquartered in Sioux Falls, South Dakota. The initial capital expenditure by the joint venture in project Liberty will amount to about $250 million. The closing of the joint venture is subject to regulatory approvals and other customary closing conditions.
Both partners in the joint venture bring deep expertise and experience in different areas of cellulosic bio-ethanol. They also share the same vision for a bio-based economy.
Jeff Broin, POET founder and CEO, said: "This joint venture brings together two companies leading the transition from a fossil-based economy to a bio-based economy. The partnership has set an ambitious goal: to make cellulosic bio-ethanol competitive with corn ethanol, which is the most competitive liquid transportation fuel on the market today. We believe that the joint venture positions us well to meet our ambitious cellulosic ethanol production goals."
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: "This cooperation is a milestone in realizing DSM's strategy. By leveraging the unique opportunities in Life Sciences and Materials Sciences we can contribute our heritage of over a century in both biotechnology and chemistry to this joint venture with a biofuels leader. Together we shall deliver the key to unlock the cellulosic bio-ethanol opportunity. As the world is facing unprecedented challenges with a growing population making an ever bigger claim on the planet's resources, we need to accelerate the transition to a bio-based economy and this joint venture is a significant step in that direction."
As one of the world's largest producers of corn ethanol, POET has been actively developing cellulosic bio-ethanol for more than a decade. In November, 2008, the company started operating a cellulosic bio-ethanol pilot plant at its research center in Scotland, South Dakota. For the past five years, POET has been working with farmers to bale, transport and store corn crop residue—the cobs, leaves, husks and some stalk left in the field after the grain harvest.
DSM already has a unique position in the development of cellulosic ethanol as the only company offering both yeast and enzyme solutions to increase conversion rates to make the technology commercially viable. DSM has vast experience in scaling up biotechnological processes and an extensive global footprint and relationships to help accelerate technology adoption in key markets.
Cellulosic bio-ethanol from corn crop residue represents a large opportunity. If the technology is replicated at POET's network of 27 existing corn ethanol plants, it could produce up to one billion gallons of cellulosic bio-ethanol per year.
In an analysis of the Renewable Fuel Standard, the U.S. EPA projected 7.8 billion gallons of cellulosic bio-ethanol coming from corn crop residue by 2022. Beyond that, the U.S. Departments of Energy and Agriculture have estimated that more than one billion tons of biomass is available in America that could produce enough cellulosic bio-ethanol to replace a third of the country's gasoline use.
POET-DSM Advanced Biofuels, LLC, is a 50/50 joint venture between Royal DSM and POET, LLC. Based in Sioux Falls, South Dakota, the company is a cooperative effort of two innovators that provides the key to unlocking the opportunity of converting corn crop residue into cellulosic bio-ethanol. Built on the strengths of both companies the joint venture has a critical mission: to make cellulosic bio-ethanol competitive with corn ethanol, the most competitive renewable liquid transportation fuel on the market today. Drawing on the deep expertise and experience of POET and DSM in different areas of converting cellulosic biomass into ethanol, POET - DSM Advanced Biofuels will have its first commercial-scale plant co-located with POET's biorefinery in Emmetsburg, Iowa. Based on this plant the JV will globally license an integrated technology package for the conversion of corn crop residue to cellulosic bio-ethanol. More information: www.poetdsm.com
POET and DSM to make advanced biofuels a reality by 2013
Joint venture to commercialize and license cellulosic bio-ethanol
1/23/2012
POET, LLC, one of the world's largest ethanol producers, and Royal DSM, the global Life Sciences and Materials Sciences company, today announce a joint venture to commercially demonstrate and license cellulosic bio-ethanol, the next step in the development of biofuels, based on their proprietary and complementary technologies. POET-DSM Advanced Biofuels, LLC, is scheduled to start production in the second half of 2013 at one of the first commercial-scale cellulosic ethanol plants in the United States.
The two partners will produce cellulosic ethanol from corn crop residue through a biological process using enzymatic hydrolysis followed by fermentation. The first commercial demonstration of the technology will be at Project Liberty, which is currently being constructed adjacent to POET's existing corn ethanol plant in Emmetsburg, Iowa. The initial capacity is expected to be 20 million gallons in the first year, growing to approximately 25 million gallons per year.
POET-DSM Advanced Biofuels, LLC, intends to replicate and license the technology to additional plants to be built at the other 26 corn ethanol facilities in POET's network and license it to other producers in the United States and the rest of the world. The U.S. Environmental Protection Agency (EPA) estimates that in the United States as many as 350-400 new bio-refineries will have to be constructed by 2022 to meet the volume requirement of 16 billion gallons/year of cellulosic bio-ethanol under the Renewable Fuel Standard.
DSM and POET will each hold a 50% share in the joint venture, which will be headquartered in Sioux Falls, South Dakota. The initial capital expenditure by the joint venture in project Liberty will amount to about $250 million. The closing of the joint venture is subject to regulatory approvals and other customary closing conditions.
Both partners in the joint venture bring deep expertise and experience in different areas of cellulosic bio-ethanol. They also share the same vision for a bio-based economy.
Jeff Broin, POET founder and CEO, said: "This joint venture brings together two companies leading the transition from a fossil-based economy to a bio-based economy. The partnership has set an ambitious goal: to make cellulosic bio-ethanol competitive with corn ethanol, which is the most competitive liquid transportation fuel on the market today. We believe that the joint venture positions us well to meet our ambitious cellulosic ethanol production goals."
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: "This cooperation is a milestone in realizing DSM's strategy. By leveraging the unique opportunities in Life Sciences and Materials Sciences we can contribute our heritage of over a century in both biotechnology and chemistry to this joint venture with a biofuels leader. Together we shall deliver the key to unlock the cellulosic bio-ethanol opportunity. As the world is facing unprecedented challenges with a growing population making an ever bigger claim on the planet's resources, we need to accelerate the transition to a bio-based economy and this joint venture is a significant step in that direction."
As one of the world's largest producers of corn ethanol, POET has been actively developing cellulosic bio-ethanol for more than a decade. In November, 2008, the company started operating a cellulosic bio-ethanol pilot plant at its research center in Scotland, South Dakota. For the past five years, POET has been working with farmers to bale, transport and store corn crop residue—the cobs, leaves, husks and some stalk left in the field after the grain harvest.
DSM already has a unique position in the development of cellulosic ethanol as the only company offering both yeast and enzyme solutions to increase conversion rates to make the technology commercially viable. DSM has vast experience in scaling up biotechnological processes and an extensive global footprint and relationships to help accelerate technology adoption in key markets.
Cellulosic bio-ethanol from corn crop residue represents a large opportunity. If the technology is replicated at POET's network of 27 existing corn ethanol plants, it could produce up to one billion gallons of cellulosic bio-ethanol per year.
In an analysis of the Renewable Fuel Standard, the U.S. EPA projected 7.8 billion gallons of cellulosic bio-ethanol coming from corn crop residue by 2022. Beyond that, the U.S. Departments of Energy and Agriculture have estimated that more than one billion tons of biomass is available in America that could produce enough cellulosic bio-ethanol to replace a third of the country's gasoline use.
POET-DSM Advanced Biofuels, LLC, is a 50/50 joint venture between Royal DSM and POET, LLC. Based in Sioux Falls, South Dakota, the company is a cooperative effort of two innovators that provides the key to unlocking the opportunity of converting corn crop residue into cellulosic bio-ethanol. Built on the strengths of both companies the joint venture has a critical mission: to make cellulosic bio-ethanol competitive with corn ethanol, the most competitive renewable liquid transportation fuel on the market today. Drawing on the deep expertise and experience of POET and DSM in different areas of converting cellulosic biomass into ethanol, POET - DSM Advanced Biofuels will have its first commercial-scale plant co-located with POET's biorefinery in Emmetsburg, Iowa. Based on this plant the JV will globally license an integrated technology package for the conversion of corn crop residue to cellulosic bio-ethanol. More information: www.poetdsm.com
Tuesday, January 24, 2012
POET Declines DOE Loan Guarantee
News release from POET, major ethanol producer:
1/23/2012
WASHINGTON, DC (January 23, 2012) -- In light of its joint venture with DSM, POET does not plan to utilize the loan guarantee it was awarded by the U.S. Department of Energy (DOE). POET received a commitment for a $105 million loan guarantee to finance Project LIBERTY on September 23, 2011. Upon the closing of the joint venture, POET will officially decline the guarantee prior to drawing any funds.
"The loan guarantee commitment from the DOE was an important milestone in our quest to commercialize cellulosic ethanol, and we are appreciative of the work they put into the due diligence process," POET founder and CEO Jeff Broin said. "We believe that the joint venture with DSM positions us well to meet our ambitious cellulosic ethanol production goals, and thus the loan guarantee has become unnecessary."
Earlier today, POET announced a joint venture with DSM, the global Life Sciences and Materials Sciences company, to commercially demonstrate and license cellulosic ethanol. For more information on Project LIBERTY and the POET -- DSM Cellulosic Ethanol joint venture, please visit http://www.poetdsm.com/
With new cellulosic ethanol joint venture, POET to decline DOE loan guarantee before drawing funds
POET -- DSM Cellulosic Ethanol, LLC makes loan guarantee unnecessary
1/23/2012
WASHINGTON, DC (January 23, 2012) -- In light of its joint venture with DSM, POET does not plan to utilize the loan guarantee it was awarded by the U.S. Department of Energy (DOE). POET received a commitment for a $105 million loan guarantee to finance Project LIBERTY on September 23, 2011. Upon the closing of the joint venture, POET will officially decline the guarantee prior to drawing any funds.
"The loan guarantee commitment from the DOE was an important milestone in our quest to commercialize cellulosic ethanol, and we are appreciative of the work they put into the due diligence process," POET founder and CEO Jeff Broin said. "We believe that the joint venture with DSM positions us well to meet our ambitious cellulosic ethanol production goals, and thus the loan guarantee has become unnecessary."
Earlier today, POET announced a joint venture with DSM, the global Life Sciences and Materials Sciences company, to commercially demonstrate and license cellulosic ethanol. For more information on Project LIBERTY and the POET -- DSM Cellulosic Ethanol joint venture, please visit http://www.poetdsm.com/
Monday, January 2, 2012
After Three Decades, Federal Tax Credit for Ethanol Expires
The following was gleaned from a January 2 New York Times article with the above title.
The New York Times
Monday, January 02, 2012
After Three Decades, Federal Tax Credit for Ethanol Expires
WASHINGTON — A federal tax credit for ethanol expired on Saturday, ending an era in which the federal government provided more than $20 billion in subsidies for use of the product.
The tax break, created more than 30 years ago, had long seemed untouchable. But in the last year, during which Congress was preoccupied with deficits and debt, it became a symbol of corporate welfare. Fiscal conservatives joined liberal environmentalists to kill it, with help from a diverse coalition of outside groups.
In the United States, most ethanol is produced from corn.
Nearly 40 percent of the United States corn crop goes to ethanol and byproducts, including animal feed.
The tax credit, which cost the government nearly $6 billion in 2011, went to gasoline refiners that mixed ethanol with gasoline.
Senator Dianne Feinstein, Democrat of California, said the ethanol industry had enjoyed “a trifecta, a triple crown” of federal support. Federal law requires that certain minimum amounts of renewable fuels like ethanol be blended into gasoline. Refiners received the tax credit for doing so. And the government imposed a tariff on imported ethanol, protecting the domestic industry.
The tariff, like the tax credit, expired Saturday. But the requirement to use increasing amounts of ethanol in gasoline continues.
==========
Tuesday, December 13, 2011
Bioenergy Pumps New Life into Pulp and Paper Mills
From the website of the U.S. Dept. of Energy. Personally, I find this announcement to be rather unsatisfying. Which biofuels are they producing? Ethanol? Biodiesel? What processes are they using? What are the break-even costs of the finished products and how do those compare with similar products produced by conventional means?
I am all for turning wastes into useful products, but we need more information than what this announcement provides.
Old Town Fuel and Fiber, a former pulp mill, converts a portion of
the wood chips used to make pulp to biofuels. |
Energy Department photo.
I am all for turning wastes into useful products, but we need more information than what this announcement provides.
Bioenergy Pumps New Life into Pulp and Paper Mills
December 13, 2011
Old Town Fuel and Fiber, a former pulp mill, converts a portion of
the wood chips used to make pulp to biofuels. |
Energy Department photo.
Despite Americans’ voracious appetite for paper products -- a staggering 700 pounds per person annually -- America’s pulp and paper industry has been struggling as of late due to competition from countries where environmental standards are less stringent and labor rates are lower. To stem plant closings and retain American jobs, the Energy Department’s Biomass Program is helping the industry diversify by producing bio-based products such as biofuels and bio-based chemicals.
We started in Maine, which is the second leading paper-making state by volume, producing three million tons of pulp in 2009. Today, there are nine paper companies employing approximately 7,400 people with an average annual salary of over $63,000. However, due to the weak economy and overseas competition, the current industry is struggling to stay afloat.
The struggle of paper mills in this region is distilled in the story of Penobscot Chermical Fiber Company. In 1882, a saw mill in Old Town, Maine, began using its wood byproducts to produce fiber as a commercial product. This repurposing of the mill created a new venture which became the Penobscot Chemical Fiber Company, a staple of the community that produced pulp fiber and quality jobs for over 100 years.
However, in 2006 the economic pressures became too great and the last owner, Georgia-Pacific Corporation, officially shut down the mill – costing 400 workers their jobs in the process. But where many saw a dying industry, a small group of investors saw potential. That same year, they bought the mill and submitted a proposal to the Energy Department to convert a portion of the wood chips used to make pulp to biofuels. Its application was selected and since then the mill has reopened as Old Town Fuel and Fiber and 300 people were rehired. The management team has been working with us as part of the Biomass Program’s Integrated Biorefinery portfolio to re-purpose the site to produce fuel, fiber and other products.
This might seem like an isolated example, but the entire pulp and paper industry is well-positioned for this kind of bioenergy re-invention. They understand the technology to deconstruct wood, have an experienced and capable work force, and the biomass supply chain is already in place. Because the jobs are higher quality, they can also get support from state and local authorities. Many of these converted mills could be repurposed and commissioned within 12-15 months after approvals, saving jobs and providing economic opportunity across states such as Maine, Pennsylvania, Connecticut, New Hampshire, Massachusetts and New York.
We started in Maine, which is the second leading paper-making state by volume, producing three million tons of pulp in 2009. Today, there are nine paper companies employing approximately 7,400 people with an average annual salary of over $63,000. However, due to the weak economy and overseas competition, the current industry is struggling to stay afloat.
The struggle of paper mills in this region is distilled in the story of Penobscot Chermical Fiber Company. In 1882, a saw mill in Old Town, Maine, began using its wood byproducts to produce fiber as a commercial product. This repurposing of the mill created a new venture which became the Penobscot Chemical Fiber Company, a staple of the community that produced pulp fiber and quality jobs for over 100 years.
However, in 2006 the economic pressures became too great and the last owner, Georgia-Pacific Corporation, officially shut down the mill – costing 400 workers their jobs in the process. But where many saw a dying industry, a small group of investors saw potential. That same year, they bought the mill and submitted a proposal to the Energy Department to convert a portion of the wood chips used to make pulp to biofuels. Its application was selected and since then the mill has reopened as Old Town Fuel and Fiber and 300 people were rehired. The management team has been working with us as part of the Biomass Program’s Integrated Biorefinery portfolio to re-purpose the site to produce fuel, fiber and other products.
This might seem like an isolated example, but the entire pulp and paper industry is well-positioned for this kind of bioenergy re-invention. They understand the technology to deconstruct wood, have an experienced and capable work force, and the biomass supply chain is already in place. Because the jobs are higher quality, they can also get support from state and local authorities. Many of these converted mills could be repurposed and commissioned within 12-15 months after approvals, saving jobs and providing economic opportunity across states such as Maine, Pennsylvania, Connecticut, New Hampshire, Massachusetts and New York.
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