News Archive - 04/2010

Ohio Announces Grants for E85 and Blender Pumps

Source: Ohio Department of Development

COLUMBUS – Ohio Department of Development Director Lisa Patt-McDaniel today announced that the Department is soliciting applications for the Alternative Fuel Transportation Grant Program for the purchase and installation of blended biodiesel, blended gasoline refueling, and fuel blending stations. The goal of the program is to increase the availability and use of alternative fuels for motor vehicles and to establish these blending facilities in Ohio.

"Advancement in alternative fuel transportation is vital to strengthening our state's ability to attract new businesses," Patt-McDaniel said. "Ohio is a leader in innovation because of new projects such as blending fuel facilities, which help to stimulate Ohio's economy and provide job creation opportunities."

In accordance with Section 122.075 of the Ohio Revised Code, this program is available for the following project applications, which must be installed in Ohio with new equipment and machinery:

• Conversion of existing retail facilities to blended biodiesel or blended gasoline retail facilities;
• New installation of blended biodiesel or blended gasoline retail facilities; or
• New installation of blended biodiesel or blended gasoline fuel blending facilities.

The grant award will cover 80 percent of the total eligible project costs or a maximum grant award of $10,000 for conversion retail facilities, $40,000 for installation of new retail facilities, or $200,000 for installation of new blending facilities, whichever is less. Eligible applicants may also request a maximum of $5,000 for educational and promotional materials and activities to increase the acceptance and use of alternative fuel in Ohio. All projects must be in operation for at least three years, include a minimum match of 20 percent, and be completed within 12 months of the grant award.

Applications are accepted on a first-come, first-served basis, but will be prioritized if they include the following preferred criteria: proximity to an interstate or other heavily traveled route, number of years in operation, evidence of local demand and financial match, publicly accessible facility, and installation of both blended biodiesel and blended gasoline.

For applications and more information about the Alternative Fuel Transportation Grant Program, please visit:http://www.development.ohio.gov/Energy/Incentives/GrantsLoans.htm.

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DJ Brazil Increases Ethanol Blend In Gasoline To 25% From 20%

Source: Dow Jones Commodities News Select via Comtex and EINNews

SAO PAULO — Brazil will increase the blend of anhydrous ethanol in gasoline to 25% from 20%, the Agriculture Ministry announced late Thursday.

The decision will take effect from May 2.

In January, the government reduced temporarily the blend of anhydrous ethanol in gasoline to avoid any shortages ahead of the next sugarcane harvest.

Brazil is the world's No. 2 ethanol producer and the No. 1 ethanol exporter.

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Tennessee Holds Ethanol Workshop

The Tennessee Department of Agriculture hosted a workshop yesterday to educate retailers on issues relating to ethanol. “Meeting the Demands of Fuel Standards with Ethanol Fuel” was attended by nearly 80 participants who included fuel suppliers, retailers, terminal operators and fleet managers.

Topics covered during the workshop included: issues and solutions to E10 and E85 field problems, E85 dispensers and Underwriters Laboratory approval update, electronic monitoring of water levels, underground storage tanks, renewable fuels standard, and grant opportunities for E85.

The Tennessee Department of Transportation (TDOT) is now accepting applications for funding through their BIOTENN Green Island Biofuel Corridor Program to establish biofuel refueling sites no more than 100 miles apart along Tennessee’s interstates and major highways. Up to $45,000 is being offered by this program to install E85 infrastructure. The Green Island grant program requires a 20% match that cannot come from state or federal funds. This is a reimbursement program and the station owner must demonstrate that eligible expenditures have been paid before reimbursing grant recipients for a new pump installation or conversion to E85.

The Growth Energy Market Development team also presented at the event explaining their ethanol infrastructure grant program where $2,500 is available on top of the TDOT funding.

The workshop was sponsored by the Tennessee Fuel and Convenience Store Association, the Tennessee Petroleum Council in partnership with: Tennessee Department of Environment and Conservation, Tennessee Department of Transportation, and East Tennessee Clean Fuels.

NY State Energy Research and Development Authority Expands Biofuel Station Initiative

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.

The New York State Biofuel Station Initiative was launched in May 2007 and the objective is to increase the number of retail E85 and biodiesel service stations in New York through a comprehensive approach of providing incentives to both mid-stream distribution terminals and retail stations.

“NYSERDA’s biofuel station initiative has been successful in building an alternative fuel infrastructure throughout New York with more than 130 retail gas stations participating and the first 45 currently open,” notedJeffrey Gordon, Director of Communications, NYSERDA.

“E85 is a domestically produced alternative fuel that affords consumers a choice at the gas pump over conventional gasoline, is more environmentally-friendly, will reduce our demand for imported oil, and will keep our energy dollars right here in New York.

"With continued support from our federal and State administrations, E85 ethanol will continue to play a role in NYSERDA’s efforts to help build a vibrant clean energy economy for the future.”

Approximately $4 million is still available for retail fueling stations.

Growth Energy is supplying the stations with their pump imaging packagethat will allow for a consistent message across the state.

Each kit will be reimbursed from the grant.

For more information regarding this program, click here.

Valero CEO: Ethanol Blend Wall ‘Should Be Increased’ Over Time

Source: NASDAQ

NEW YORK — (Dow Jones) — Valero Energy Corp. (VLO) supports increasing ethanol blending in gasoline but is cautious about making such a move without clearing liability issues, the company's top official said Tuesday.

The U.S.'s largest independent oil refinery also became one of its largest corn ethanol producers over the past year as it snapped up 10 biofuel plants with the capacity to produce 1.1 billion gallons of ethanol a year. The move not only allows Valero to fulfill a portion of its biofuel blending requirements but also aligned it with some of the oil refining industry's biggest critics: corn ethanol producers and lobbyists.

Valero has moved into the corn ethanol industry amid ongoing food-versus-fuel debates. Bill Klesse, Valero's chairman and chief executive, said in a conference call Tuesday that "the U.S. farmer has demonstrated an ability to grow more corn, increasing yields, and so we think that ethanol is viable in the fuel mix." He added that there's still an opportunity to grow the ethanol business.

In order to grow the refiner's small but profitable business, the blend wall will have to be increased beyond the 10% limit since most of the gasoline sold in the U.S. is already at or near that threshold. U.S. regulations require that about 12 billion gallons of ethanol be blended in 2010 and that volume will be capped at 15 billion gallons in 2015.

But the corn ethanol industry has been worried that it won't be able to blend that much ethanol because gasoline demand has remained low after falling sharply during the U.S. recession. This summer, the U.S. Environmental Protection Agency is widely expected to lift the blend wall to 15% in response to a waiver requested by corn ethanol producers.

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GM to invest about $890 mln in plant upgrades

Source: Reuters

• Upgrades for next-gen V8 engines for pickup trucks
• GM spending on plants up since bankruptcy (Adds company confirmation, plant spending since bankruptcy, details on new engines)

DETROIT, April 27 (Reuters) — General Motors Co [GM.UL] on Tuesday said it would invest about $890 million to upgrade five North American plants to build the next-generation V8 engine for its full-sized pickup trucks.

The investment will allow GM to retain laid-off workers, and perhaps create new jobs. In all, about 1,600 jobs would be restored or created, GM said.

Since emerging from bankruptcy, GM has committed to invest $2.3 billion at 22 U.S. and Canadian sites, restoring or creating about 9,100 jobs, the company said.

The automaker will invest $400 million at its plant in Tonawanda, New York; $235 million at St. Catharines, Ontario; $115 million at Defiance, Ohio; $111 million at Bedford, Indiana; and $32 million at Bay City, Michigan.

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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.”

New E85 and Blender Pump Stations

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.

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.

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.

The New York State Biofuel Station Initiative was launched in May 2007 and the objective is to increase the number of retail E85 and biodiesel service stations in New York through a comprehensive approach of providing incentives to both mid-stream distribution terminals and retail stations.

“NYSERDA’s biofuel station initiative has been successful in building an alternative fuel infrastructure throughout New York with more than 130 retail gas stations participating and the first 45 currently open,” noted Jeffrey Gordon, Director of Communications, NYSERDA. “E85 is a domestically produced alternative fuel that affords consumers a choice at the gas pump over conventional gasoline, is more environmentally-friendly, will reduce our demand for imported oil, and will keep our energy dollars right here in New York. With continued support from our federal and State administrations, E85 ethanol will continue to play a role in NYSERDA’s efforts to help build a vibrant clean energy economy for the future.”

Approximately $4 million is still available for retail fueling stations. Growth Energy is supplying the stations with their pump imaging package that will allow for a consistent message across the state. Each kit will be reimbursed from the grant.

For more information regarding this program, click here.

Poet aims high with cellulosic ethanol

Source: Ethanol Producer Magazine

by Holly Jessen

Already one of the top ethanol producers of traditional corn ethanol, Poet plans to add 3.5 billion gallons of cellulosic ethanol by 2022, said Jeff Broin, CEO, on April 21 at the National Press Club in Washington, D.C. That’s more than 20 percent of the cellulosic ethanol mandated by the Renewable Fuels Standard.

To reach that, Poet will add 1 billion gallons of cellulosic ethanol production from corn stover to its existing ethanol plants. Current production numbers show Poet is producing 1.4 billion gallons at 26 corn ethanol plants in the U.S. “Our model that co-locates grain and cellulose plants takes biomass from the same acres and gets us to the commercialization of cellulosic ethanol faster,” Broin said. “It also makes both ethanol processes more efficient, significantly reducing Green House Gas emissions for corn ethanol, and maximizing the use of the corn plant.”

The company also plans to license the technology to other corn ethanol plants for an additional 1.4 billion gallons. The final 1.1 billion gallons of cellulosic ethanol will come from cellulosic ethanol produced from other feedstocks, either by Poet or through joint ventures. “We are looking primarily at other waste products: ag residues such as wheat straw and rice hulls, wood chips, paper waste and municipal solid waste,” he said. “With much of the work on corn stover nearing completion in our labs, we will soon turn to studying these other feedstocks.”

By the end of August, the company plans to have completed installation of an improved pretreatment system at its Scotland, S.D., pilot plant. The $2 million addition will help scale the 20,000 gallon a year facility to commercial size. This is all part of the company’s quest to cut costs to reach its goal of $2 per gallon—competitive with gasoline prices but more expensive than the costs of producing first generation ethanol.

Read the full article at EthanolProducer.com.

Growth Energy was at the announcement and you can see a photo from the event on our blog at GrowthEnergy.org/blog.

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

FFV Awareness Campaign Comes to Nebraska

Earth Day Launch of FFV Education Program

LINCOLN, Neb. — The National Flexible Fuel Vehicle (FFV) Awareness Campaign announced a state-wide education effort beginning on Earth Day to alert drivers to new E85 road signs being installed across Nebraska. The program is designed to encourage FFV owners to use higher ethanol blends, such as E85, which have been proven to be easier on the environment than conventional gasoline.

The National FFV Awareness Campaign is a joint project of the Clean Fuels Foundation, the Governors’ Biofuels Coalition, the Nebraska Ethanol Board, and a wide range of industry and private interests dedicated to utilizing the 8 million flexible fuel vehicles on the road today. FFVs can operate on blends of ethanol up to 85% and represent a significant opportunity for the U.S. to reduce its dependence on imported oil, create domestic jobs, and reduce greenhouse gas emissions.

Todd Sneller, Administrator of the Nebraska Ethanol Board said, “We are pleased to combine our ongoing efforts here in Nebraska with the nationwide program of the FFV Awareness Campaign. High ethanol blends like E85 can open up new markets for ethanol but we need to make sure drivers know they can use these fuels and where they can purchase them.”

Sneller said several national surveys indicate that as many as 90% of the owners of FFVs either are not aware their vehicles have this capability or have never used ethanol blends. “The FFV campaign is about consumer awareness and driver education. We are going to begin with the drivers of the 87,000 FFVs on the roads of Nebraska immediately. There is no better time to start this campaign than on Earth Day.”

Sneller said the new state road signs would create brand recognition that will allow drivers to identify gas stations that have E85 available, including blender pumps that can dispense different levels of gasoline-ethanol blends. In addition to the signs, the Nebraska program will include distribution of FFV and E85 information at Rest Areas along Interstate 80 in Nebraska, including cards with the E85 sign branding, directing FFV owners to a list of E85 locations on the Nebraska Ethanol Board’s website. The campaign will include an ongoing series of projects and events designed to support refueling infrastructure and ethanol demand. Nebraska is one of several states working with the Governors’ Biofuels Coalition and the Clean Fuels Foundation to increase awareness of flexible fuel vehicles. The campaign can be adopted by other states where FFV owners may not be aware of the ethanol fuel choices available.

The National FFV Awareness Campaign is also promoting the use of higher ethanol blends in Florida and other states. The campaign is coordinating with ethanol producers, retail fuel providers, automobile dealers, agriculture and environmental groups, and others to take advantage of the opportunity that FFVs can play in helping to reduce petroleum use.

Douglas A. Durante, Director of the Clean Fuels Foundation, said the campaign is critical if the US is to achieve the benefits of the Renewable Fuels Standard (RFS) that is current law. “The U.S. Environmental Protection Agency (EPA) has stated the RFS can reduce pollution, increase farm income, lower fuel costs to consumers, and provide a host of other benefits, but only if we can actually use the fuel the program requires. Once we maximize the use of low level blends in conventional vehicles we must turn to FFVs.”

Durante also noted that the Departments of Energy and Agriculture have invested hundreds of millions of taxpayer dollars in cellulosic ethanol technologies that will soon be coming on line. The significant volumes of ethanol they produce will need to be used in FFVs. According to Department of Energy estimates, these and other biofuels provide the opportunity to displace 40-60% of our oil imports over time.

For further information, please visit www.flexiblefuelvehicleclub.org, and www.cleanfuelsdc.org, and www.NE-Ethanol.org.

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

Food vs. fuel: MSU scientists say growing grain for food is more energy efficient

EAST LANSING, Mich. — Using productive farmland to grow crops for food instead of fuel is more energy efficient, Michigan State University scientists concluded, after analyzing 17 years' worth of data to help settle the food versus fuel debate.

"It's 36 percent more efficient to grow grain for food than for fuel," said Ilya Gelfand, an MSU postdoctoral researcher and lead author of the study. "The ideal is to grow corn for food, then leave half the leftover stalks and leaves on the field for soil conservation and produce cellulosic ethanol with the other half."

Other studies have looked at energy efficiencies for crops over shorter time periods, but this MSU study is the first to consider energy balances of an entire cropping system over many years. The results are published in the April 19 online issue of the journal Environmental Science & Technology.

"It comes down to what's the most efficient use of the land," said Phil Robertson, University Distinguished Professor of crop and soil sciences and one of the paper's authors. "Given finite land resources, will it be more efficient to use productive farmland for food or fuel? One compromise would be to use productive farmland for both -- to use the grain for food and the other parts of the plant for fuel where possible. Another would be to reserve productive farmland for food and to grow biofuel grasses -- cellulosic biomass -- on less productive land."

He, Gelfand and Sieglinde Snapp, another co-author and an MSU associate professor of crop and soil sciences, analyzed data collected from 1989 to 2007 at the W.K. Kellogg Long Term Ecological Research site. That National Science Foundation-funded project studies ecology and environmental biology to provide a better understanding of both natural and managed systems. It is the only agricultural program in the 26-site NSF national LTER network.

The scientists compared the energy inputs and outputs of producing corn, soybeans and wheat grown using four systems: conventional tillage, no-till, low chemical input and organic, and then using all harvested plant material for either food or biofuel production. They also looked at energy balances for growing alfalfa, an important forage plant that can be used either for biofuel or for beef cattle feed.

The analysis showed that using no-till production to grow grain for food was the most energy-efficient system for food or fuel production. Avoiding plowing with no-till management reduces tractor fuel use during production.

Producing a kilogram of corn for human food provides more energy than converting the corn to either ethanol by processing or to meat by feeding it to animals. Growing alfalfa for biofuel is 60 percent more efficient than using it as cattle feed, according to the study.

Robertson and Gelfand also are members of the Great Lakes Bioenergy Research Center, a partnership between Michigan State and the University of Wisconsin-Madison funded by the U.S. Department of Energy to conduct basic research aimed at solving some of the most complex problems in converting natural materials to energy.

The U.S. Energy Independence and Security Act of 2007 calls for biofuels to comprise 22 percent of the nation's transportation fuels by 2022.

"This research is aimed at policymakers who have to decide how and where biofuels should be grown and the best way to encourage farmers to follow those suggestions," Robertson said.

Research by MSU agricultural economics professor Scott Swinton earlier found that the most profitable cellulosic biofuel crop right now is corn stalks and leaves.

"Our research suggests that this is an energy-efficient strategy as well, so long as the grain is used for food," Robertson said. "But there are not enough corn stalks to meet expected energy needs and federal policy also may decide to offer incentives to grow crops that offer more environmental benefits than corn, including incentives to grow grasses on less productive land.

"The promise of biofuels made from biomass is huge, from both climate mitigation and economic perspectives," he continued. "But the promise could come up short if we don't pay attention to details such as the land on which they are grown."

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.

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.”

U.S. Ethanol Industry To Launch First-Ever National TV Ad Campaign

America's ethanol supporters launched the industry's first national TV ad campaign today to promote the only renewable, domestic fuel that is an alternative to imported oil, which makes up nearly 60 percent of the nation's fuel supply.

"Ethanol is America's fuel: it's made here in the U.S., it creates U.S. jobs, and it contributes to America's national and economic security. This ad campaign is designed to reach beyond the Beltway to communicate those facts about ethanol to the broader American public — people who until now have only heard one side of the story," said (Ret.) Gen. Wesley K. Clark, Co-Chairman of Growth Energy, the coalition of U.S. ethanol supporters that is airing the "America's Fuel" campaign.

Read more about the ads, watch the spots and see a webcast from the launch event at GrowthEnergy.org.

North Dakota Ethanol Blender Pump Incentive Program Underway

The state of North Dakota is also providing grant funds of up to $5,000 per pump, limited to $40,000 per station to install blender pumps that dispense E10, E85, and any ethanol blend exceeding 20% alcohol. Click here for more information.

Applicants may also be eligible to receive an additional $2,500 grant from the North Dakota Corn Council. To review that application, click here.

Member Spotlight — Eddie’s Service Center

Eddie's Service Center is located on the north shore of Long Island, New York. Eddie's Service Center is a small, family owned and operated auto service center and fueling station that has been located at 743 E. Main St. in Kings Park, NY. They were past members of the NEVC and renewed their membership with Growth Energy Market Development.

The business was started in the 1970's by Edward Piotrowski Sr. His son, Eddie, joined the business while he was in high school. In 1979, Eddie Jr. became a partner in the business and continued to run the business after Ed Senior retired in 1992. His wife Jean works at the business taking care of the bookkeeping and accounting. He was later joined by his son, Eddie Jr. who worked through high school and college. He is now a NY City Fireman and continues to work in the business part time. An important member of the Eddie's team is the full time gas attendant, Haji, who has been working there for over 17 years.

Eddie's joined Growth Energy in order to become more educated on E85 fuel and to be able to be proactive in conserving energy and protecting the environment. "We feel that this is an important step for our business," noted Eddie. "Conservation and recycling are things we feel strongly about."

He went on, "We decided to offer E85 because we were undergoing tank replacement at our station. We felt it was a good time to re-evaluate the products we were offering. We had previously been selling kerosene, we decided to not continue with kerosene and introduce E85 instead. The greatest obstacle I see regarding E85 is consumer education. Many people are not aware that their vehicles can use E85. There is also the fear that something may go wrong with a vehicle because of the alternative fuel."

Eddie noted that the automobile manufacturers should educate the people who are purchasing the flex-fuel vehicles about the use and availability of the fuel, also consumer education is another challenge within the industry.

"Everyone who can use E-85 should be made aware of the environmental and cost benefits. The more it is used, the more popular it will become," he said

Many of the customers at Eddie's have been coming to the station for fuel and repairs for over 30 years and have known three generations of Eddie's.

South Dakota Ethanol Blender Pump Incentive Program Underway

On April 1, 2010 the state of South Dakota began accepting applications from retailers who wish to install ethanol blender pumps. Up to $10,000 per site is available and retailers must comply with the regulations established by the state of South Dakota. A total of $1,000,000 has been allocated for the program and applications must be received by May 30, 2010. Click here for more information.

A series of information meetings begins on April 13 in Rapid City and we encourage all South Dakota retailers to participate. For a complete list of the information meetings, click here.

Tennessee DOT Offering E85 Grants — Deadline is Fast Approaching

The Tennessee Department of Transportation (TDOT) is now accepting applications for the next round of Green Island Biofuel Corridor Network grants. The deadline to apply for the grants is April 30, 2010.

The Green Island grant program is a competitive funding opportunity available to retail fuel station owners and farmer co-ops interested in promoting and selling two biofuel blends, E85 (ethanol) and B20 (biodiesel). The goal of the Green Island grant program is to establish a statewide network of publicly accessible B20 and E85 refueling stations, particularly along interstates and major highways and in major population centers.

"Green Island grants encourage and help expand the commercial availability of biofuels in Tennessee, giving motorists more options at the pump and reducing harmful vehicle emissions," said Gov. Phil Bredesen in a written press statement. "This program is a vital piece of the state's efforts to make biofuels a real option for Tennesseans."

TDOT Commissioner Gerald Nicely says now that 65 biofuel pumps are serving Tennesseans across the state, this round of Green Island Grants focuses on completing the development of the Green Island Corridors.

"We want to identify partner retail fuel stations in areas along our major corridors where biofuel stations are not currently in place, particularly in the Chattanooga and Memphis areas," Nicely also said in a written statement.

The Green Island grant program assists a limited number of retail fuel stations with the capital costs of converting or installing fuel storage tanks and dispensing equipment for B20 and/or E85. The maximum grant award is $45,000 per E85 or B20 fuel system ($90,000 for both fuels). Retail station owners must provide at least 20 percent of the total project costs. To learn more about this grant and to download an application, go tohttp://www.tn.gov/tdot/biofuel/application.htm.

The Tennessee Department of Agriculture is sponsoring a Ethanol Workshop in Nashville on April 28 to discuss installing ethanol infrastructure and grants available. A member from Growth Energy Market Development team will be available at the event to discuss our own grant opportunities. To learn more about the workshop or to register, contact Ed Coleman at (615) 837-5150.

Letters to Growth Energy

It would be useful to know in every newsletter what if any federal legislation is being proposed/enacted to mandate that every gas station shall carry E85 fuel.

Thaddeus

Thaddeus J. Kochanny

Thaddeus,

VEETC, Tariff and Cellulosic Ethanol Tax Credit

Congressmen Earl Pomeroy, D-N.D., and John Shimkus. R-Ill., introduced legislation that would extend the 45 cent a gallon VEETC and 54 cent a gallon tariff for five years. Both the VEETC and the tariff are set to expire at the end of this year. The bill would also extend the $1.01 cellulosic tax credit, which is set to expire at the end of 2012 for three years and the 10-cent a gallon small-producer tax credit, which is set to expire at the end of this year, for five years. Sen. Grassley will introduce similar legislation in late April or early May.

Blender Pumps

The legislative affairs team is working to get language included in upcoming legislation that would allow gas stations to receive a tax credit for installing blender pumps. Under current law, they can only receive the tax credit for installing E85 pumps. It is unlikely this tax credit will be included in the tax extenders package because the blender pump tax credit is a multiyear tax credit.

Thanks again for your question!

New E85 and Blender Pump Stations

As of this publication, there are 2,127 E85 stations including 134 blender pumps. Below is a listing of those opened since our last publication.

If you know of an E85 station we do not have listed at http://www.e85refueling.com/, please contact us at marketdevelopment@growthenergy.org.

New and Renewed Growth Energy Market Development Members

Dara's Fast Lane Corporate
Don Bowles Corporation

Should you wish to join Growth Energy, contact marketdevelopment@growthenergy.org.

New Fuel Economy Standards May Benefit Ethanol

Source: DomesticFuel.com

Today the Environmental Protection Agency (EPA) and the Department of Energy (DOE) signed a joint final rule that establishes greenhouse gas emission standards and corporate fuel economy standards for light duty vehicles for model years 2012-2016. This National Fuel Efficiency Policy requires passenger cars and light trucks to get an overall average of 35.5 miles per gallon (mpg) by 2016 while cars are expected to average 39 mpg and trucks will be required to get 30 mpg. According to the current administration, this measure is expected to save 1.8 billion barrels of oil over the life of the program.

However, we could actually reduce oil imports and emissions even more under this program by using ethanol.

Let me explain. The easiest way to gain the improved fuel economy is through “engine downsizing,” in other words, using smaller engines. But the new smaller engine technologies will not mean less power, like in the past. According to Ethanol Boosting Systems, their technology enables gasoline engines to “reach their full potential” by utilizing performance enhancing properties of ethanol in conjunction with advances in direct injection (DI) and turbocharging.

Here is how their system works: The EBS approach uses controlled direct ethanol injection to add a very significant vaporization-enhanced On-Demand Octane BoostTM that essentially removes the knock limit on engine performance. The elimination of the knock constraint has been proven by systematic engine dynamometer tests. This allows a small gasoline engine to provide the same or higher torque as compared to a conventional engine of much larger size.

This downsizing, the company explains, when combined with the use of a high compression ratio enables gas engines to improve efficiency, aka fuel economy, by 25-30 percent. The ethanol blend deriving the best results is E85 and in conjunction with a 3-way catalytic converter for emission control, you achieve both goals: decreased emissions and increased fuel economy. In other words, octane matters and the highest octane level you can purchase today, is E85.

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