Iowa’s biodiesel production remains strong

Despite the loss of the federal biodiesel tax credit, biodiesel production in Iowa remained strong during the first quarter of 2012.

According to figures released by the Iowa Department of Revenue, ten Iowa biodiesel plants produced nearly 42 million gallons from January through March.   The Iowa Renewable Fuels Association (IRFA) says that’s on pace with 2011 production, although down from year-end levels.

IRFA executive director Monte Shaw says the numbers show Iowa’s new biodiesel production tax credit is having a positive impact. 

In 2011, the Iowa legislature enacted a short-term tax credit to help Iowa’s biodiesel industry compete against states that provide large biodiesel incentives.  The Iowa program went into effect on January 1st, 2012, the same day the federal biodiesel program expired.

Shaw says with additional biodiesel production set to come on line in Iowa, he hopes to see the production numbers increase throughout the year.

Iowa has 13 biodiesel facilities with the capacity to produce 320 million gallons annually.  A study released earlier this year found that biodiesel production in Iowa supported 7,350 jobs.

More flex fuel pumps in Missouri

A grand opening will be held Friday for six new Flex Fuel gas pumps offering ethanol blends at a gas station in Waynesville, Missouri – (located on I-44 between Lebanon and Rolla) which the station owner says will help bring down the cost of gas.

The grand opening at the Express Stop Store – is from 2 ‘til 9 pm with music, giveways and other events. The Flex Fuel dispensers will offer ethanol blends of E85, E30 and E20 for use in flex fuel vehicles.

Growth Energy, the USDA Missouri office and Missouri Corn Growers Association are partners with the station for the grand opening.

The Growth Energy ethanol coalition says the number of flex fuel pumps across the nation exceeds 300.  According to the Missouri Corn Growers Association there are now 15 blender pumps in Missouri.

Ethanol savings are even greater in Iowa

A new report from the Iowa State University Center for Agricultural and Rural Development (CARD) shows that ethanol reduced wholesale gasoline prices by $1.09 per gallon nationally last year.

But the savings to Midwestern motorists were even more than that.

According to Lucy Norton of the Iowa Renewable Fuels Association, without ethanol, pump prices in Iowa have been $1.69 more per gallon.

“So if you take that $1.69 per gallon reduction, it adds up to a very generous $2,363 in annual savings for a typical Iowa family,” Norton says.

Norton explains that the savings are higher in areas with greater ethanol production and ethanol use.

“Iowa is the number one ethanol producing state and ethanol has captured 80 percent of the fuel market here in Iowa—so Iowans are reaping the best benefits from having ethanol available to them,” she says.

Iowa’s  41 ethanol plants produce nearly three-point-seven billion gallons annually.

AUDIO: Lucy Norton (3:50 MP3)

 

We saved $1.09 per gallon on gasoline last year

A new update of a study by researchers at the University of Wisconsin and Iowa State University finds that in 2011, ethanol reduced the price of gasoline in the United States by $1.09 per gallon. Regular gasoline averaged $3.52 per gallon in 2011; the researchers say without the 13 billion gallons of ethanol in the fuel supply last year, the price would have been closer to $4.60 per gallon.

Released by the Center of Agricultural and Rural Development, the study states the average American household used 1,124 gallons of gasoline in 2011 so ethanol reduced the average household’s gasoline expense by more than $1,225.

The $1.09 per gallon in 2011 is up from the 89 cents saved in 2010 due to increasing ethanol production and higher crude oil prices. Crude oil increased from $80 per barrel in 2010 to $95 per barrel in 2011 resulting in a 30 percent increase in the wholesale gasoline price.

Read the study here:

Ethanol, livestock cheer higher corn numbers

The first guess of 2012 corn production in yesterday’s USDA World Agricultural Supply and Demand Estimates report was 14.8 billion bushels, higher than many in the industry expected.

Geoff Cooper with the Renewable Fuels Association had this reaction.

“We’re always cautious, in general, when USDA puts these early numbers out.  We obviously have a long time to go between now and September-October—and a lot of things can change,” Cooper says. “But, you know, we think it just shows what the potential for this year’s crop can be under kind of normal conditions.

“By all accounts, it could be a monster.”

USDA also predicts a one billion bushel build-up in corn stocks by the end of the next marketing year, to nearly 1.9 billion bushels.  

USDA grains analyst Jerry Norton says if that happens, he would expect to see a significant recovery in corn feeding by the livestock and poultry industries.

“Certainly this opens the opportunity for some increased profitability in those livestock sectors that have struggled over the last few years,” Norton says.

The increase in the 2012 corn crop projection was in  part due to yield increasing from 164 to 166 bushels per acre.

The growing economic impact of renewable fuels

A new study from the Global Renewable Fuels Alliance says biofuels contributed $277.3 billion to the global economy in 2010. Alliance spokesperson Bliss Baker says global biofuel production totaled 110 billion liters (29.1 billion gallons) and supported 1.4 million jobs in 2010. The United States, Brazil and European Union are the largest producers of biofuels.

By 2020 the industry is projected to produce 196 billion liters (51.7 billion gallons) of fuel and support over 2.2 million jobs. GRFA says much of that growth will come from Africa and Asia as developing nations seek to grow wealth and prosperity while reducing dependence on imported oil.

API report ‘another roadblock’ to E15

The path to E15 has been a rough one, with many roadblocks along the way. 

The latest obstacle is a report released by the American Petroleum Institute (API) that says half of all gasoline station equipment is not compatible with the blend of 15 percent ethanol and 85 percent regular gasoline.

Prentiss Searles, API’s manager of marketing issues, says the EPA has done an inadequate job of addressing the issue of dispensing equipment and other infrastructure challenges associated with E15.

“A gas station is more than the dispenser.  It is all of the underground storage tanks, the piping and all the fittings and components that go into making that system,” Searles says. “So even if you have the dispensers upgraded to be able to blend E15, you still haven’t addressed all the other issues of concern that deal with environmental safety, environmental protection, and safety for the consumer.”

Responding to API’s claims, Ron Lamberty of the American Coalition for Ethanol (ACE) says “we shouldn’t be surprised to see Big Oil ‘go negative’ on E15—but it is surprising to see them going after pumps and tanks, because most of that equipment has been tested—for decades—using at least 15 percent ethanol.

“Underwriters Laboratories’ listing for petroleum equipment requires that they pass dozens of tests using fuel that contains 15 percent ethanol,” Lamberty says, “and their listing for tanks and piping defines ‘alcohol-gasoline mixtures’ as any level of ethanol or methanol up to and including 100 percent.”

The ethanol industry is in the process of trying to convince retailers to add E15 to their pumps. Lamberty admits that API’s report will make that job a bit more difficult.

“It’s another roadblock.  It’s another thing thrown out in front of the folks who own gas stations that they’ve got to take a look at and say, ‘okay, do I really want to try this’,” he says. “It’s not anything new, but the timing of it is what is is—it’s there because we’re getting very close to having stations approved and manufacturers approved that can sell E15 at the pump.”

Lamberty calls the petroleum industry’s latest attack on E15 “a thinly-disguised attempt to maintain their stranglehold on our fuel supply.

“Not because they’re truly worried about anybody’s gas pumps, in my opinion,” he says, “but more because they’re worried that people might start buying five percent more ethanol—and that means five percent less gas.”

AUDIO: Ron Lamberty (8:12 MP3)

 

RFA issues early response to oil industry

The Renewable Fuels Association said this morning it was prepared to respond to the oil industry’s call later in the morning aimed at raising consumer concerns about E15.

In its “pre-buttal”, as the RFA called it, the organization said some of the oil industry’s concerns about E15 are legitimate but “many will be manufactured in order to scare consumers away from more ethanol use.”

While it says there are real misfueling concerns created by “the partial nature of the E15 waiver” – the RFA says it’s worked “in good faith with all stakeholders to address” those concerns.

The RFA has a website, E15fuel.org, a misfueling mitigation plan to assist retailers – and – an E15 Retailer handbook for gas station owners who want to offer E15 at ethanolrfa.org.

Corn growers meet with Mourdock

Indiana Corn Growers Association recently met with Senatorial candidate Richard Mourdock after comments made during his televised debate earlier this month with incumbent Senator Richard Lugar.  During the debate, Mourdock blamed ethanol for high gas prices.  Indiana Corn Growers Association president Gary Lamie says that is not the case.  “In 2010 the reduction due to ethanol for the national average gasoline wholesale price is 89 cents per gallon,” he says.  “That gives an idea on a national perspective of just the effect of ethanol.”

And over a ten-year period the national average reduction was 25 cents per gallon.  Following the meeting Mourdock indicated he would not change his position on ethanol. 

Mr. Mourdock has not returned Brownfield’s request for comments.

E15 one step closer to a fueling station near you

E15 has cleared one more hurdle on its way to market, 99 ethanol producers across the country will pay for an annual nationwide survey of the fuel as required by the Environmental Protection Agency. The survey starts on May 1st and will pull more than 7,500 samples of all gasolines.

The Renewable Fuels Association, Growth Energy and American Coalition for Ethanol says the focus will now be on meeting state regulations. Some states like Iowa, Illinois and Kansas are ready to go and E15 could start showing up at pumps as soon as stations implement their Misfueling Mitigation Plan and have it approved by EPA.

AUDIO: Meghan Grebner reports from D.C.