Monday, April 26, 2010

Volume 1, Issue 9

Growth Energy Adds News Items on Website

Take a look at EthanolRetailer.com! We will be adding news items pertaining to E85, blender pumps, and flexible fuel vehicles on a daily basis. These news items will then be compiled in a concise newsletter and sent to you now.

For any suggestions to the EthanolRetailer.com website or our FYI Newsletter, please email marketdevelopment@growthenergy.org.

Growth Energy Market Development Grants Available

Don't forget! Growth Energy's Market Development team is now offering funding to retailers to assist in ethanol blender pump infrastructure. Grants of $2,500 and $5,000 are now available on a first come, first serve basis to vendors who wish to install new or convert existing equipment for ethanol fueling. We are focusing on areas that are outside the Mid-west that have no additional state grants available.

We are providing a $5,000 grant for a blender pump that dispenses E30 and E85 and up to $2,500 for an E85 dispenser. You can find the two page OUTLINE of the Infrastructure Development Program by clicking here. To review the APPLICATION for the funding, click here. For questions regarding the program, please contact the Market Development office at (573) 635-8445.

Growth Energy Offering $15,000 grants in Virginia and Washington State:

As part of our program working with the U.S. Dept. of Energy (DOE), Growth Energy is offering grants of up to $15,000 to install blender pumps in the Norfolk-Virginia Beach-Newport News area of Virginia and in the Seattle-Everett area of Washington State.

Growth Energy has received $200,000 from the U.S. Dept. of Energy to install blender pumps in these two areas and our Market Development program has added an additional $100,000. We expect to award 10 grants in each area of up to $15,000 per site. The programs are generally being concentrated in the Norfolk, Va. and Seattle, Wa. areas. For questions regarding the program, please contact the Market Development office at (573) 635-8445 or atmarketdevelopment@growthenergy.org.

Read Growth Energy's blog posts on RenewableEnergyWorld.com

Featured Links

• See if Your Vehicle is Ethanol Blend Compatible
• Find an Flex Fuel Station in Your Area

NYSERDA Expands Biofuels Program for Another Year

The New York State Energy Research and Development Authority has extended their Biofuel Station Initiative that will allow for 50 percent of the costs, up to $50,000 per site, for new installations of biofuels dispensing equipment, storage tanks and associated piping equipment.

Read More >>

North Dakota establishes ethanol promotion group

BISMARCK, N.D. – Gov. John Hoeven, the North Dakota Ethanol Council and ethanol industry leaders today announced the establishment of a new program that will fund the newly-established North Dakota Ethanol Council’s marketing activities by dedicating a share of the industry’s production profits to promotion of ethanol.

Also known as a check-off, the program dedicates three one-hundredths of one cent per gallon of ethanol produced and sold in the state to develop research, education programs, promotion, and market development efforts to help build the state’s ethanol industry. The Council’s projected annual budget is $100,000.

“North Dakota’s agricultural economy and rural communities have directly benefited from the growth of the ethanol industry in our state,” Hoeven said. “Ethanol creates jobs and boosts income for our farmers.”

The North Dakota Ethanol Council includes representatives from all of the state’s major ethanol producers, including ADM Corn Processing, Walhalla; Blue Flint Ethanol, Underwood; Hankinson Renewable Energy, Hankinson; Red Trail Energy, LLC, Richardton; and Tharaldson Ethanol Plant, Casselton. Jeff Zueger of Blue Flint Ethanol serves as the group’s chairman.

“As an industry, we are excited to have the Council established and staff hired,” says Jeff Zueger, NDEC chairman and Blue Flint Ethanol general manager. “These steps allow us to move forward with a coordinated effort to expand the ethanol industry in North Dakota.”

The concept for the North Dakota Ethanol Council grew out of the EmPower North Dakota Commission, which was created by the Governor and authorized by the State Legislature in 2007 to further advance the state’s comprehensive energy policy, known as Empower ND. EmPower North Dakota works to develop all of the state’s energy resources, both renewables and traditional energy resources.

Read the full article at AgWeek.com

Read More >>

Growth Energy Offers Counter Mat for E85 and Blender Pump Stations

By popular demand, Growth Energy is offering specially designed “counter mats” for retailers. These heavy duty mats inform customers of how to distinguish their vehicle as E85 compatible from inside the convenience store every time they make a purchase.

To order a counter mat for your facility, click here.

Read More >>

Extending Tariff, Tax Credit Would Spur Job Growth

U.S. Ethanol Supporters Endorse Grassley-Conrad Bill

WASHINGTON, DC – Growth Energy, the coalition of U.S. ethanol supporters, issued the following statement after Sens. Charles Grassley, R-Iowa, and Kent Conrad, D-N.D., introduced a bipartisan bill to extend the Volumetric Ethanol Excise Tax Credit (VEETC) and ethanol tariff for five years and the cellulosic tax credit for three years, all at current levels.

“Extending these measures will ensure job growth and economic development across the entire country—all while reducing our dependence on foreign oil and cleaning our skies,” Tom Buis, CEO of Growth Energy, said. “If we let the tariff and VEETC expire, it would drain both hundreds of thousands of jobs and billions of dollars right out of our economy.”

The Senate bill mirrors bipartisan legislation that was introduced in the House in March by Reps. Earl Pomeroy, D-N.D., and John Shimkus, R-Ill. Pomeroy serves on the tax-writing House Ways and Means Committee, while in the Senate, both Grassley and Conrad serve on the tax-writing Finance Committee, giving the bipartisan legislation a strong advantage in the Congress.

Buis cited a University of Missouri study which found that allowing the tariff to lapse would force job losses of 39,506 in the first year, 115,624 in the second year, and 161,384 in the third year – with job losses continuing year-to-year and never regaining. The decline in economic activity was calculated at $9.2 billion in the first year, $26.4 billion in the second year, and $36,651 in the third year.

Read the full release at GrowthEnergy.org

Read More >>

Hoosiers Get Ethanol

Source: Hoosiers Ag Today

Last week the ethanol industry launched a series of national television ads designed to change consumer attitudes about ethanol. Those attitudes, however, don‘t need to be changed here in Indiana. When it comes to understanding ethanol, where it comes from, and why it is a good alternative to petroleum, Indiana motorists get it, says Greg Noble with POET Energy. “In the Midwest, most consumers are familiar with corn production and with ethanol,” he told HAT. He said that the further you move away from the farming population the less understanding there is. On the coasts, for example, there is very little understanding about ethanol, where it comes from, and its advantages.

One of the reasons Hoosiers understand ethanol so well is thanks to the efforts of Indiana farmers. Mark Walters, with the Indiana Corn Marketing Council, says their research shows the ethanol message has reached most Hoosiers, “Our research shows that Indiana consumers are very supportive of renewable fuels and ethanol in particular.” Walters said most Hoosiers understand the economic value ethanol brings to the state, they understand the environmental benefits, and they very much understand this is a matter of national security.

Most gasoline in Indiana is blended with 10% ethanol, but higher blends like E-85 are still hard to find. Currently, there are only 130 locations in the state that sell E-85. Walters says corn farmers are investing funds to help build the E-85 infrastructure, “I will be the first to admit we need more of those pumps and we need more flex fuel vehicles on the road.” Walters says that the more flex fuel cars there are on the road, the more willing retailers will be to put in flex fuel pumps.

Listen to an mp3 of this report at Hoosiers Ag Today.

Read More >>

ExxonMobil pays no U.S. corporate income tax; ethanol industry generates millions for communities

Source: Nebraska Ethanol Board

How much money did you send to Uncle Sam today? Chances are it was more than Exxon Mobil. According to Forbes Magazine, the oil giant didn’t pay a single dime in corporate income tax to the U.S. government in 2009.

To be fair, Exxon Mobil did pay corporate income tax; just none of it went to the U.S. government. Thanks to an elaborate scheme involving 20 subsidiaries based in off-shore tax shelters like the Bahamas and Cayman Islands, Exxon Mobil paid no U.S. corporate income tax on their 2008 profits of $45.22 billion.

Ethanol, however, continues to generate revenues for federal, state and local governments while creating thousands of outsource-proof jobs, at ethanol plants and in related industries. Omaha-based Union Pacific Rail Road was the transportation mode of choice for many Nebraska ethanol producers shipping ethanol to West Coast markets. The ethanol industry continues to create business for Nebraska companies and jobs for Nebraskans.

According to the Nebraska Public Power District, the ethanol industry has generated over $63.3 million in new tax revenues in Nebraska alone, while adding $2.13 million in household income and creating over 3,000 jobs. Another study found that in 2008, the ethanol industry generated $11.9 billion in federal tax revenues.

Todd Sneller, administrator of the Nebraska Ethanol Board, said one new ethanol plant can provide millions in tax revenue.

“Ethanol plants pay taxes that benefit Nebraskans,” Sneller said. “Ethanol is the rural development success story of Nebraska. It’s a win for drivers, farmers, and government. On April 15 it is especially important to recognize industries that make important contributions to our economy. As consumers make a fuel choice at the pump we encourage the ethanol option.”

Read More >>

Member Spotlight – Propel Fuels

Propel Fuels was founded in 2005 to make alternative fuels available to a market that could not have access to them. The company first started in Seattle and in 2008 moved to California to help alternative fuels and carbon fuels. Today, there are currently 12 people on the Propel team, but they are looking to expand rapidly.

Propel builds, owns and operates a growing network of alternative fueling sites. Their goal is to provide the community with easy access to high quality clean fuels. They partner with existing gasoline retailers, assisting with permits, equipment and financing.

Currently Propel Fuels has a total of 11 fueling stations in which 5 carry E85 that are located in Sacramento, CA. The other six are located in Seattle and they carry biodiesel. Propel was originally attracted to the market in Sacramento because of the incentives and grant agencies. Based on a tremendous success with the other fueling sites in Sacramento, Propel plans on installing 100 sites within the year.

Chief executive officer Matt Horton says, “We will be building in all the major markets in the next 12 months.” Propel recently received $20 million to roll out E85 and biodiesel sites when they partnered with the state of California.

The main reason Propel Fuels joined Growth Energy Market Development was to understand feedback from ethanol suppliers and producers, but also to cultivate relationships with those in the industry.

The most challenging aspect according to Horton is consumer education and market perception. Many people have not been exposed to E85 and been educated on the vehicles can use it. Propel partnered with auto dealers in Sacramento to change misconception and to educate consumers.

“We need to focus our efforts on where we reach people, building closer relationships with domestic and foreign dealers and discussing the availability of E85 but also the major benefits,” noted Horton. “Driving awareness of mapping out locations that carry E85 but also driving the message of the benefits ethanol contributes to nation security and environmental benefits.”

Read More >>

New and Renewed Growth Energy Market Development Members

Triple Ag Supply
Growmark
Mansfield Oil Co.
Country Pride Coop
Mid Pac Petroleum, LLC
Anjon of Bridgehampton, Inc.

Read More >>

New E85 and Blender Pump Stations

Read More >>

Letters to Growth Energy

Please send comments, questions or suggestions to our Market Development Team and we will share them with our readers in our next FYI newsletter. Email questions, comments or suggestions to: marketdevelopment@growthenergy.org.

Events Calendar

To submit a Calendar item, email marketdevelopment@growthenergy.org.

GrowthEnergy represents the producers and supporters of ethanol who feed the world and fuel America in ways that achieve energy independence, improve economic well-being and create a healthier environment for all Americans now!