Monday, January 17, 2011

Volume 2, Issue 2

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.

Missouri Funds Still Available

Growth Energy and Missouri Corn Growers are providing financial assistance to Missouri retailers who install blender pump infrastructure. The direct grant of $10,000 — split between Growth Energy and Missouri Corn — is available for any Missouri station that adds a blender pump with mid-level blends to their retail facility. An income tax credit is also available for the cost of constructing a qualified alternative fueling station in Missouri. The tax credit may not exceed 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment or $20,000, whichever is less.

For more information please contact Bradley Schad at 573-893-4181or bschad@mocorn.org

Colorado Funds Still Available

Grants are still available in the state of Colorado to add ethanol fueling infrastructure. The Colorado Blender Pump Pilot Program provides up to $15,000 for each qualified station dispensing mid-level ethanol blends. For more information please contact Katrina Davis at 970.351.8201 or kdavis@coloradocorn.com.

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

Top 10 Biofuels Predictions for 2011

#10. USDA Loan Guarantees.
Well, this one is a little like shooting fish in a barrel, because we expect this to be announced almost immediately, and close by the first quarter. We expect up to four loan guarantees - USDA originally wanted six by January 1, 2011 - to close in the first quarter, before the US Congress can swipe the money away from the program. We expect to see a lot of added loan guarantees financed not only by the project finance market, but the bond market.

Read More >>

U.S. farm group: Install pumps, end ethanol credit

Congress should transform the $6 billion a year ethanol tax credit into a program that underwrites the installation of “blender” pumps and pipelines so biofuels are more widely available, the largest U.S. farm group said on Tuesday.

The 45-cent a gallon tax credit, which goes to gasoline blenders, expires at the end of this year. Congress voted for the one-year extension last month amid arguments whether to end the tax credit altogether or to reform biofuels supports.

Read More >>

Gov. Daugaard aims to expand ethanol use and infrastructure

In his State of State Address on Tuesday, January 11, newly elected South Dakota Governor, Dennis Daugaard, discussed his future plans for the states’ ethanol industry moving forward in regards to helping lessen the state’s budget deficit.

The plan featured $3.5 million dollars that will be used in the expansion of the state’s blender pump infrastructure. Additional blender pumps will make ethanol more accessible in the market place giving more consumers the choice of using higher blends when filling up. Additional ethanol sales will likely stimulate much of the state’s economy benefitting ethanol plants, farmers, small businesses and consumers.

Read More >>

New service station to offer alternative fuels

The first local retail sales of ethanol and biodiesel fuels are scheduled to begin in April at Sparky’s Marketplace, a new service station, convenience store and car wash being developed by Hill Oil Co. on Old Salisbury Road.

Grading has been completed at the site near the Reserve at Regent Center apartments, and the footings will be put in as soon as the weather breaks, said Mayne Hill, president of Hill Oil, which has offices in Lexington and Winston-Salem.

Read More >>

Visit Patriot Renewable Fuels at QCA Farm Show

Patriot Renewable Fuels, LLC is pleased to announce its participation in the 2011 Quad City Farm Show, January 16-18. With 110,000 Illinois farmers located within100 miles of the QCCA Expo Center, Patriot foresees a perfect opportunity to showcase our state of the art facility and discuss the changing landscape of ethanol usage, including the EPA’s increased fuel standard of E15, the continuing spread of blender pumps, and the rise in usage of E85.

In October, the U.S. EPA made the first upgrade in ethanol standards in 30 years. According to Patriot’s Commodities Manager, Judd Hulting, “The E15 approval for model year 2007 and newer vehicles increases the potential demand with roughly 42 million more cars and light-duty trucks on our nation’s roadways—roughly 20% of the American fleet. If we receive approval as anticipated on the E-15 for the model year 2001-2006, that will equate to 86 million cars or approximately 54% of the U.S. fleet.”

Read More >>

Letter: Ethanol is best ‘green’ alternative to fossil fuels

Gael Entrikin’s letter, “Corn ethanol will never be sustainable,” in the Jan. 6 Post-Bulletin) overlooks the fact that grain ethanol is the only viable, renewable and domestic alternative to foreign oil. It is not a “someday” green fuel – grain ethanol is here today and reducing carbon emissions by as much as 59 percent compared to conventional gasoline. Cellulosic ethanol could reduce emissions by 86 percent.

Technological advancements have made today’s ethanol plants cleaner and more efficient than ever. Production is constantly improving with new technology. The only reason the ethanol industry needs government support today is because we are denied access to the transportation fuels market, which is controlled by the oil industry.

Read More >>

Wesley Clark at AG CONNECT Expo

Retired General Wesley Clark visited the second AG CONNECT ExpoSaturday in Atlanta to talk with farmers and ranchers visiting the event about the importance of ethanol to our nation’s security.

Representing Growth Energy, Clark greeted folks at the CASE IH exhibit on the floor of the agricultural trade show. He also made time for some media interviews to talk about ethanol issues, like what he thinks will happen with ethanol policy this year in Congress. “We need to be thinking ahead about how to fix America’s dependence on foreign oil,” Clark said. “We probably are going to need some incentives for service station owners to invest in blender pump technology and that can be done by giving them some of the credit that is being given right now to the blender itself.” So Growth will probably support some kind of a split in the current tax incentive structure to give some for infrastructure.

Read More >>

Thorntons Touts Flex-Fuel Network

Thorntons has announced that 36 gas station/convenience store locations throughout the company’s retail network now offer E85 flex fuel: seven in Illinois, 11 in Indiana, 11 in Kentucky and seven in Tennessee.

E85 is an alcohol-based fuel comprised of 85% ethanol, 15% gasoline. As an alternative fuel, E85 has experienced tremendous growth in the last 10 years, due primarily to its benefits as a renewable fuel that helps create a cleaner environment, boosts the U.S. economy and reduces oil imports, the company said.

Read More >>

Buick Introduces The All-New 2012 Verano

The all-new 2012 Buick Verano compact luxury sedan, the brand’s third new model in the past two years and first in the compact luxury segment, will be revealed at the North American International Auto Show.

Verano goes on sale in the fourth quarter of 2011, the latest model in a product renaissance that began with the Enclave and continued with the LaCrosse and Regal. Like them, Verano is distinguished by luxury and technology, including 10 standard air bags, an available heated steering wheel and a next-generation radio system with OnStar-powered connectivity that enables seamless communication between the Verano and the driver’s smart phone.

Read More >>

Ethanol industry flows as corn, oil prices rise

Corn, corn cobs, wood chips, biopolymers, distillers dried grains, landfill gas and natural gas.

To an outsider, these words are the proverbial sugarplums dancing through energy producers’ heads. To farmers and the energy community, however, they are the keys to the future of an industry that eventually could compete with oil.

Many folks are up in arms about ethanol, saying that despite higher corn yields and residues, it’s in a state of flux since it began its rise just a few years ago — that investors rushed in and built plants without looking at the long-term sustainability of corn-based fuel.

Read More >>

New E85 and Blender Pump Stations

There are currently a total of 2,357 E85 stations and 276 blender pump stations.

New stations:

** represents Blender pumps

Read More >>

Letters to Growth Energy

This section highlights emails and letters to Growth Energy. Send your comments and letters to marketdevelopment@growthenergy.org.

How can I find out if there are state incentives available in my state- Indiana to add a blender pump?

— Sam

Dear Sam,

Thank you for your question.

The US Department of Energy Website is a great resource to check to see what incentives are available in your state for adding blender pump infrastructure. To access your state’s incentives, visit: http://www.afdc.energy.gov/afdc/laws/state

Sometimes there are also grants available, as well as income tax credits. Specifically for the State of Indiana, there is a biofuel infrastructure grant program in which the IN Department of Agriculture awards grants up to $20,000 for infrastructure. There is also an alternative fueling station grant program available in which various grants are accessible. To view all of Indiana’s incentives, visit: http://www.afdc.energy.gov/afdc/laws/state_summary/IN

For more questions on grants available, please feel free to contact Market Development, marketdevelopment@growthenergy.org.

— Growth Energy Market Development

Dear Growth Energy Market Development,

Can you tell me what is being done to improve mileage in E-85. Also, what is keeping Brazilian ethanol out of the market?

— Chip

Dear Chip,

Flex fuel pumps or blender pumps have become a new alternative to E85, as blender pumps offer mid level blends of ethanol, such as E20, E30 or E50 and E85. Blender pumps offer more choices at the pump, but blends such as E30 have been tested to have little to none drop in efficiency. To view a listing of all the E85 stations and blender pumps stations, please visit: www.e85refueling.com

The U.S. currently imposes a tariff on Brazilian ethanol of $0.54 per gallon in order to encourage domestic ethanol production and protect the industry. The 2007 Energy independence and Security Act was passed by Congress in order to make America more energy secure and more energy independent – not further addicted to foreign sources of energy. If we want to import something from Brazil it should be the same resolve to become energy independent. More than three decades ago, Brazil wisely saw the importance of supporting and incentivizing their domestic ethanol industry and now they are energy independent while the U.S. continues to rely heavily on foreign oil.

Thanks for your support within the ethanol industry

— Growth Energy

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!