Showing posts with label renewable energy. Show all posts
Showing posts with label renewable energy. Show all posts

Tuesday, September 1, 2015

Cargill to convert poultry manure into energy

Cargill’s European poultry business has signed a 20-year agreement with the Irish agri-tech company, BHSL, to convert poultry manure to energy with BHSL’s innovative technology on its Shobdon and Hangar poultry farm in Herefordshire, U.K.
BHSL, the Limerick-based agri-tech company, will build a 1 megawatt plant on the farm to use some 3,500 metric tons of poultry litter a year to generate heat and electricity. This initiative demonstrates Cargill’s continued industry leadership through innovation and will set new standards in poultry production for the next decade
The 1,000 square meter Approved Energy Center and fuel store will contain the BHSL Fluidized Bed Combustion (FBC) plant, toploaders, and a Heliex electricity generation plant. A 3-kilometer district heating network and heaters for 13 poultry houses will also be installed.
BHSL will fund complete solutions in the U.K. for the poultry industry, whereby the company will design, build, finance, operate and maintain Manure-to-Energy facilities on independent growers’ or poultry integrator farms.

Regulation and approval of poultry manure project

The heat and electricity generated on the Shobdon and Hangar poultry farm qualifies for the U.K. Renewable Heat Incentive (RHI) and Renewable Obligation Certificates (ROCs).
The commissioning and operation of the new BHSL energy centre in Herefordshire will be approved and regulated by the U.K. Animal and Plant Health Agency  (APHA)
BHSL championed the development of the new rules for on-farm combustion of poultry manure at European Commission level, in close collaboration with the U.K. and Irish governments, on behalf of the European poultry industry. The resulting rules reclassified poultry manure as a valuable Animal By-Product for on-farm combustion, which meets emissions animal health and human health standards.
BHSL technology is currently the only approved system under the new European regulations EU 592/2014 that became law in July 2014.

Environmental and economic benefits

John Reed, agriculture director, Cargill Meats Europe, said the company had selected BHSL for a number of reasons:
  • The BHSL system is an innovative energy solution, which will allow Cargill to operate its own sustainable on-farm energy supply.
  • Litter from the farms will provide a consistent, dry and renewable fuel source and the enclosed manure handling system will help to improve biosecurity on and off farm.
  • The clean, dry heat provides enhanced environmental conditions that not only provide energy savings but provide performance and bird welfare benefits.
  • The system also carries significant environmental benefits, which includes low carbon production, reduced ammonia emissions and ground water protection.
  • Sustainability is at the forefront of Cargill’s stakeholder and customer expectations and the company believes this project provides an opportunity to demonstrate good agricultural practice in bird performance and responsible litter disposal.
Sean Fitzpatrick, BHSL commercial director, said that the conversion of manure to energy presents a transformational opportunity to the poultry industry - not just in the U.K. but globally.   He stated: “We are extremely excited to be working with Cargill, and helping them to extend their leadership in Sustainable Food Production. Cargill will be the first to leverage the proven benefits of using poultry manure on the farm to generate heat and electricity. This is a genuine Game Changer for the poultry industry, for the first time the by-product (manure) from chicken production is used as a low cost energy source to grow chicken sustainably and efficiently.”
BHSL pioneered the development of its energy system in response to restrictions in poultry manure spreading in Southwest Ireland that are becoming increasingly common worldwide. For example, BHSL’s unique technology has recently secured its first contract in the United States with the USDA in Maryland, which is tackling equivalent water quality challenges in the Chesapeake Bay region.

Wednesday, May 28, 2014

Tyson Foods selling its half of Dynamic Fuels

    Renewable Energy Group Inc. (REG) has reached an agreement with Tyson Foods Inc. to acquire Tyson’s 50 percent ownership position in Dynamic Fuels LLC, the companies announced May 21. Completion of the transaction with Tyson Foods, which is contingent upon the closing of REG’s December 2013 announced agreement to acquire substantially all of the assets of Syntroleum Corporation, would give REG full ownership of Dynamic Fuels and its 75-million gallon per year nameplate capacity renewable diesel biorefinery in Geismar, Louisiana.
    Tyson and Syntroleum formed Dynamic Fuels in 2007 as a 50/50 joint venture. The Geismar facility, completed in 2010, was the first large-scale renewable diesel biorefinery built in the U.S.
    “Upon closing, this is another milestone for REG in growing our core advanced biofuels business,” said Daniel J. Oh, REG president and CEO. “It gives us the opportunity to further expand our production capacity into new product lines, while growing our overall advanced biofuel manufacturing capability, and bringing on other renewable chemical applications.”
    “Selling our interest in Dynamic Fuels to REG provides capital for Tyson to redeploy into other opportunities,” said Andrew Rojeski, vice president of renewable energy for Tyson Foods. “REG is a long-term customer of ours, buying fats, oils and greases to make renewable fuel, and we hope to continue that relationship.”
    Under the terms of the agreement, an REG subsidiary would acquire Tyson Foods’ 50 percent membership interest in Dynamic Fuels by paying Tyson approximately $18 million in cash at closing and up to $35 million in future payments tied to production volume at the Geismar biorefinery over a period of up to 11.5 years. REG will also fund repayment of approximately $12 million of Dynamic Fuels’ indebtedness to Tyson at closing.
    A portion of the development and construction of the Geismar biorefinery was funded by $100 million in Gulf Opportunity Zone Bonds, issued through the Louisiana Public Facilities Authority. Closing of the acquisition from Tyson Foods is conditioned on REG’s replacement of the letter of credit Tyson Foods obtained to support issuance of the bonds or completion of a financing sufficient to refinance the bonds prior to December 31, 2014 on terms acceptable to REG. REG may seek to use existing cash on hand and/or one or more financing vehicles, including public or private debt or equity, to satisfy this condition. Closing is also subject to satisfaction of other customary closing conditions.
    REG currently owns eight operating biodiesel refineries in Iowa, Illinois, Minnesota and Texas that have a combined annual nameplate production capacity of 257 million gallons. With the addition of the Geismar facility, the company’s total advanced biofuel annual nameplate production capacity would increase to 332 million gallons.

Thursday, December 26, 2013

Smithfield subsidiary taking part in project to deliver renewable energy

    Murphy-Brown's Circle 4 Farms and Alpental Energy Partners are producing electricity via two methane digesters that Alpental put into operation in November 2012 at the Circle 4 facility just outside Milford. Murphy-Brown is the livestock production subsidiary of Smithfield Foods, Inc.
    The two methane digesters are operational and are producing renewable energy.
    In 2012 Circle 4 Farms and Alpental Energy Partners entered into a strategic partnership to take hog manure from Circle 4 Farms and convert it into electrical energy, which will be placed on the power grid to provide electricity for residential and commercial customers in Utah.
    "Murphy-Brown is excited to be the engine driving this latest form of renewable energy that will allow citizens to turn on the lights in their Utah homes, while at the same time protecting the environment from greenhouse gases such as methane," said Jim Webb, director of environmental and public affairs for Circle 4 Farms.
    "On a personal level, our Milford project is very gratifying for all of us at Smithfield Foods, Murphy-Brown and Circle 4 Farms. Anyone who has observed our actions during the past decade is familiar with our commitment to sustainability," Webb said.
    "We are committed to reducing our impact on the land, water and air resources that we use in our operations," he added.
    "All of us at Smithfield Foods are tremendously proud of all the people at Murphy-Brown, Circle 4 Farms and Alpental Energy Partners, who have worked very hard to provide renewable energy for Utah's residents," said Dennis H. Treacy, Smithfield's chief sustainability officer.
    Webb explained that the two methane digesters installed at Milford convert some of Circle 4's hog manure to energy, providing enough electricity to power about 3,000 homes and businesses. The manure-to-energy project has had a significant impact on Circle 4's lagoons. That's because converting manure to energy means that solid waste will be reduced, which is stored in lagoons at the farms, which greatly changes the dynamics of lagoons for the hog operations involved in this project.
    "It's a pleasure to be part of this special project. We are thrilled about our partnership with Smithfield Foods, Murphy-Brown and Circle 4 Farms, and we are looking forward to getting this project fully ramped up and to provide another source of electricity for the citizens of Utah," said Brady Olson, vice president of Alpental Energy Partners.
    "We're proud to be working with an organization like Smithfield Foods that is making good on its commitment to renewable energy and effective waste management," said Paul Stephan, managing partner of Alpental Energy Partners.
    Alpental is the principal funder of this project. Funding for these projects is not being provided by Smithfield Foods, Murphy-Brown or Circle 4 Farms.

Friday, December 20, 2013

Renewable Energy Group intends to acquire Syntroleum

    The Iowa-based Renewable Energy Group Inc. (REGI) plans to acquire Syntroleum, an Oklahoma-based energy company, pending shareholder approval. Syntroleum is a-50 percent partner with Tyson Foods in a large diesel fuel production plant in Louisiana.
    Renewable Energy Group has agreed to buy nearly all of Syntroleum's assets and assume all the material debt as well. The terms call for Syntroleum to receive 3.976 million shares of REGI common stock worth an estimated $42 million, The City Wire reported.
    Syntroleum and Tyson jointly own 50 percent in Dynamic Fuels, a 75-million gallon renewable diesel production facility that has been inactive throughout 2013. It is estimated that each partner has lost about $1 million per month the plant has been idle, in addition to the loss of about $20 million in potential sales.
    REGI owns and operates eight active biodiesel refineries in four states with a combined production capacity of 257 million gallons. It also distributes biodiesel through a national network.

Monday, August 12, 2013

Final 2013 Renewable Fuel Standard requires further action, says NCC

    The National Chicken Council praised the Environmental Protection Agency for its willingness to adjust the Renewable Fuel Standard, but said the final standard for 2013 established on August 7 does not go far enough to truly help the poultry industry.
    National Chicken Council President Mike Brown added that further action from Congress to repeal the Renewable Fuel Standard is the best way to give poultry and livestock producers more market certainty for the feed grains that are also used in renewable fuels.
    The final 2013 overall volumes and standards issued by the Environmental Protection Agency require 16.55 billion gallons of renewable fuels to be blended into the U.S. fuel supply (a 9.74 percent blend). This standard specifically requires:

    • Biomass-based diesel (1.28 billion gallons; 1.13 percent)
    • Advanced biofuels (2.75 billion gallons; 1.62 percent)
    • Cellulosic biofuels (6.00 million gallons; 0.004 percent)

    "The National Chicken Council appreciates that EPA has finally recognized the reality of the situation and is willing to consider adjustments to the 2014 volume requirements of the RFS to address the fact that we simply cannot blend more and more ethanol into less and less gasoline," said Brown. "This is a band-aid approach, however, to a problem that needs a long-term, sustainable solution. Chicken producers, and all end users of corn, can't rely upon the administration to make these adjustments on an annual basis. We need certainty in the market that only Congress can provide by repealing the conventional requirements of the Renewable Fuel Standard."

Friday, August 9, 2013

Repeal of Renewable Fuel Standard not expected, poll indicates

      A Poultry Confidence Index poll shows 74 percent of those surveyed said a repeal of the Renewable Fuel Standard would benefit the poultry industry.
    Suspension of the Renewable Fuel Standard would benefit the poultry industry, respondents to a recent Poultry Confidence Index poll agreed. An overwhelming 74 percent said they "slightly" or "strongly" agreed with this position.
    As Congress debates this issue, The National Chicken Council and the National Turkey Federation -- along with the National Cattlemen's Beef Association -- have already urged the repeal the Renewable Fuel Standard.
    Poultry-Confidence-Index-1308USAgraph2.gif
    Only 23 percent of Poultry Confidence Index survey respondents believe the Renewable Fuel Standard may be suspended within the next six months.

    The fuel mandate has been blamed for $35 billion in cumulative additional feed costs, decreased food affordability and growing global political unrest. At a minimum, repeal proponents have called for a temporary waiver until grain harvests have recovered from the recent U.S. drought.
    Poultry Confidence Index respondents agree. However, they doubt that the government will repeal or reduce the Renewable Fuel Standard. Half of the respondents said a suspension is "somewhat" or "very" unlikely during the next six months, while slightly less than a quarter said it was "somewhat" or "very" likely. 

Wednesday, July 31, 2013

National Chicken Council vice president testifies on Renewable Fuel Standard

    National Chicken Council Senior Vice President and Chief Economist Bill Roenigk told the House Energy and Commerce Subcommittee on Energy and Power that the Renewable Fuel Standard, at least for conventional biofuels, is broken beyond repair, and that it is imperative at this time for Congress to take a critical look at the Renewable Fuel Standard. Roenigk appeared before the subcommittee on July 24.
    Roenigk's testimony follows The National Chicken Council's white paper comments released in April to the Energy and Commerce Committee that argued the federal government's mandate for corn-based ethanol has been the single, most important, major driver impacting the corn market since the Energy Independence and Security Act of 2007 was implemented.
    "Since 2007, all chicken producers, at times, have struggled financially," Roenigk testified. "Some have struggled longer and more severely than others. The business disruptions directly impact the over 25,000 family farmers who grow the chickens, and the more than 300,000 employees directly working for the chicken companies. Since October 2006 through this month, July 2013, poultry and egg producers have had to bear the burden of higher feed costs totaling over $50 billion."
    Roenigk testified on the third of three panels the committee heard as part of their two-day hearing entitled, "Overview of the Renewable Fuel Standard: Stakeholder Perspectives." Other panelists included: Pam Johnson, president of the National Corn Growers Association; Ed Anderson, CEO of Wen-Gap LLC on behalf of the National Council of Chain Restaurants; Chris Hurt, professor of agriculture economics at Perdue University; and Scott Faber, vice president of Government Affairs for the Environmental Working Group.

Friday, February 22, 2013

Congress listening more to Renewable Fuel Standard opponents


    Thomas Elam has made his voice heard as the Environmental Protection Agency’s proposed Renewable Fuel Standard is in the midst of a 45-day public comment period, and he said he thinks members of Congress are starting to listen.
    Elam, introduced to members of the National Turkey Federation as the “arch-nemesis of the ethanol industry," spoke to federation members on February 14 during their annual convention.
    The proposed 2013 overall volumes and standards are: biomass-based diesel (1.28 billion gallons; 1.12 percent); advanced biofuels (2.75 billion gallons; 1.60 percent); cellulosic biofuels (14 million gallons; 0.008 percent); and total renewable fuels (16.55 billion gallons; 9.63 percent.) They were introduced on January 31. Elam, president of FarmEcon LLC, along with spokespeople from ActionAid, Taxpayers for Common Sense, American Fuel and Petrochemical Manufacturers, Environmental Working Group and National Marine Manufacturers Association, took part in Congressional briefings on February 5. Members from each group warned Washington officials of how the Renewable Fuel Standard and the ethanol industry are harmful.
    Whether those briefings will lead to a different standard and free up more corn for poultry and livestock feed is still up in the air, Elam said, but the seed has at least been planted. “We did this briefing a year ago, and the attendance this time showed two or three times as many people there,” said Elam. “There’s more of them listening, and they were listening very intently. On the Senate side, we got no questions, but on the House side, we got a ton of questions, and they were all very, very good questions. Does that translate to a majority in both houses voting for a bill and perhaps being able to override a presidential veto? I don’t know.”
    During his talk to the federation, Elam said the Renewable Fuels Association will tell the story that the availability of corn has little impact on the cost of poultry and livestock production, or the cost of food. But he stresses quite the opposite. “Since the first RFS in 2006, food costs have started to climb, and have they ever climbed,” he said, estimating that the total cost impact on food from 2005 to 2012 has been $71.3 billion. Despite the 15 percent decrease in feed supply and significant increase of feed costs since 2007, the turkey industry has sustained. The overall commercial meat production in 2012 was around 91 billion pounds, which is actually up about one billion from 2007. Projections for 2013 are very similar to the 2012 results.
    But Elam said had less grain been used for ethanol production, more would have been available for feeding turkeys and that 2012 production number would have been much higher. “It’s been amazing what you’ve managed to do. If costs have been lower and corn had been more plentiful, that production would be up close to 100 billion pounds this year,” said Elam. “That is the potential that we are missing.”
    Elam said ethanol mandates are also holding other animal agriculture industries back. “We could have been producing significantly more meat. Cargill wouldn’t have needed to close their Texas plant. We could have built that Sanderson Farms complex in North Carolina. We could have built more complexes. There wouldn’t have been eight poultry companies go bankrupt since 2008. We could have avoided a lot of stress. We just don’t have enough feed stocks to feed our people and our ethanol plants,” Elam said.

Thursday, February 7, 2013

Ag economist urging Congress to fix Renewable Fuel Standard


    The Renewable Fuel Standard is broken, but Congress can fix the rule by acting now and opening an inclusive, robust debate that leads to extensive reform, Dr. Thomas Elam, president of FarmEcon LLC, said at a media briefing on February 4.
    Elam presented his remarks on behalf of the National Chicken Council and National Turkey Federation.
    Congress in 2005 enacted the first Renewable Fuel Standard which mandated levels of ethanol to be blended with gasoline. In 2007 that ethanol mandate was expanded, and biodiesel was added. The Environmental Protection Agency on January 31 proposed new percentage standards for four fuel categories that are part of the agency’s Renewable Fuel Standard. The proposal is open for a 45-day public comment period, and the agency will consider feedback before the proposal is finalized.

    Renewable Fuel Standard challenge for industry
    Elam stated that 2007 was a game changer, referring to it as a "Hail Mary."
    "We did not then, and still do not today, have the volume of agricultural raw materials, or the required cellulosic ethanol technology, to meet the 2007 Renewable Fuel Standards goals," he said. "Nearly six years later, it's still not a commercial reality. The courts just a few weeks ago ruled this to be the case, as well."
    Corn production has declined while Renewable Fuel Standard mandates have increased, Elam said while discussing the past three years. Smaller supplies have resulted in more than doubling of the most important input cost to poultry production — feed.
    "Since Renewable Fuel Standard's enactment in 2005, annual feed costs for chicken producers have risen $8.8 billion, and turkey by $1.9 billion," he added. Cumulative additional costs for broilers and turkeys since 2006 total more than $42 billion.

    Price increases passed along to consumers
    Poultry producers are not the only ones being hit with added costs, though. Elam said these costs are passed on to consumers in the form of higher prices.
    "USDA's average wholesale broiler meat prices leapt from 68 cents in 2005 to a record high 91 cents in December, 2012—a 35 percent increase. Turkey meat soared from 79 cents in 2005 to a record high of 120 cents a few months ago. And it's not just poultry that costs more. A variety of food products that depend heavily on corn feed are also more expensive. It's safe to say Renewable Fuel Standards is hitting consumers, poultry producers and farmers squarely in the pocketbook."
    Another unintended consequence from Renewable Fuel Standards is bankruptcy for some. Elam noted that since 2008, eight major poultry producers filed for bankruptcy, and last year, the poultry industry's contract farmers—this includes many small family farms that raise live birds — lost about $500 million in potential income. "This loss is attributable to chicken and turkey production that did not happen because of higher feed costs," he explained.
    "We need to inject a dose of reality into Renewable Fuel Standards, especially when corn supplies are limited due to historically low inventories," Elam continued. "Renewable Fuel Standards is a man-made crisis. The 2012 drought was not… As a witness to the devastating impact of Renewable Fuel Standards on the good people who work so hard to feed our country, I say, allow them to compete on a level playing field with fuel ethanol producers who have an unfair advantage thanks to the 2007 Renewable Fuel Standards rule changes.
    Another concern Elam shared was that the market for E85 ethanol blends is not as large as some may lead others to believe.
    “We’ve had E85 on the market for seven or eight years now, and consumers have not exactly flocked to E85, even though it’s been available. People don’t walk into a dealer buying a new car, saying ‘I’ve got to have a flex-fuel vehicle,’” Elam said. The fact is that ethanol is so expensive compared to gasoline on an energy basis, not a per gallon basis, that E85 is far from economical to put into your car on a cost-per-mile basis because of the reduction you see in your mileage.”

    Ethanol exports on the horizon
    Elam added that without a feasible market, the U.S. could end up exporting ethanol to other countries, “and I don’t think that was the intent of the law.”
    Other groups participating in the media briefing included ActionAid, Taxpayers for Common Sense, American Fuel & Petrochemical Manufacturers, Environmental Working Group and National Marine Manufacturers Association.
    Kristin Sundell, who spoke on behalf of ActionAid, said her organization’s biggest concerns about the fuel standards “puts a strain on land and food supplies, contributing to hunger and political instability across the world.”
    Developing countries are still feeling the pinch of the U.S. drought and it’s impact on feed supplies, Sundell said, and that problem is magnified by the diversion of more than 40 percent of U.S. corn for ethanol production, in order to meet Renewable Fuel Standard mandates, Sundell added.
    Tom Faber, vice president of government affairs for the Environmental Working Group, said ethanol production has hurt the environment, as 23 million acres of grassland and wetlands have been converted for corn production. That is a land mass the size of Indiana, Faber added. That conversion of idle land is driving more carbon to be released into the atmosphere, creating more herbicide and pesticide runoff, and is reducing the amount of available wildlife habitat, he said.
    Elam and Steve Ellis, who moderated the media briefing and spoke on behalf of Taxpayers for Common Sense, said they will be participating in congressional briefings February 5 in Washington.
    The proposed 2013 overall volumes and standards are: Biomass-based diesel (1.28 billion gallons; 1.12 percent); Advanced biofuels (2.75 billion gallons; 1.60 percent); Cellulosic biofuels (14 million gallons; 0.008 percent); and Total renewable fuels (16.55 billion gallons; 9.63 percent.)

Wednesday, January 30, 2013

Maryland agrees to buy poultry litter power


    Maryland Gov. Martin O'Malley announced January 25 that the state and the University of Maryland have agreed to buy up to 10 megawatts of electricity from a proposed Federalsburg, Md., power plant that uses poultry litter as its primary fuel.
    The deal is expected to save the state up to $80 million over the life of the 15-year agreement. State officials say the proposed plant will also help reduce farm runoff into the Chesapeake Bay.
    O'Malley announced in October 2012 that the state was seeking proposals for the purchase of electricity as part of the Clean Bay Power project to promote the use of renewable energy, to reduce runoff and to encourage job creation.
    "Maryland is leading the nation's efforts in clean energy and sustainability, and our state's growing green jobs sector is vital to our ability to create jobs and compete globally in the new economy," said O'Malley. "It's only through a diverse, renewable fuel mix that we will be able to reach our aggressive goal of generating 20 percent renewable energy by 2022, create jobs through innovation and protect our precious environment."

Wednesday, January 12, 2011

DuPont to acquire Danisco for $6.3 billion

DuPont has agreed to acquire Denmark-based Danisco for $6.3 billion, DKK655 ($113.85) per share.
The acquisition is expected to boost DuPont's efforts in industrial biotechnology, including renewable fuels and materials. “Danisco has two well-positioned global businesses that strongly complement our current biotechnology capabilities, R&D pipeline and specialty food ingredients, a combination that offers attractive long-term financial returns,” said DuPont CEO Ellen Kullman. “This also would create opportunities across other parts of the DuPont portfolio, including traditional materials science offerings.”
DuPont will fund the purchase with $3 billion in cash and the remainder in debt, and the deal is expected to close early in the second quarter of 2011.

Friday, July 16, 2010

Ethanol stock inches up

Ethanol storage in the U.S. increased to 819 million gallons, according to a report issued by the Renewable Fuels Association.
The RFA calculated that based on total sales of gasoline, “ethanol production is equivalent to 8.8% of gasoline demand”. This value represents the true measure of value of ethanol in relation to crude oil and the cost of refining.
For RFA members to survive, they must have continued government support in the form of subsidies both direct and indirect and also enjoy an increase in the current E10 blend ceiling to a higher value.

Tuesday, June 29, 2010

Fine tuning your energy consumption strategy

Join Mike Moore, president and CEO of American Energy Solutions, as he discusses a practical approach to identifying and implementing a strategy that maximizes energy pricing alternatives and gaining the best return on invested capital dollars.
Energy markets are complicated and, as a result, companies are re-thinking how they manage these expenses. Complex market factors affect risk and pricing, deregulation varies from state to state, carbon emissions are becoming an issue, and limited capital dollars are available for energy conservation projects. This webinar encompasses a worldwide approach and is not a focus on North America. This online seminar is only $9.95 for the first 100 registrants!
Reserve your seat today.

Friday, May 14, 2010

Record corn production projected

The U.S. Department of Agriculture projects a record 13.4 billion bushels of corn will be produced this year. This uptrend will ease tension between corporate livestock interests and American farmers and ethanol producers, according to the ethanol industry trade group, the Renewable Fuels Association (RFA).
Key points of the report noted by the RFA: Corn supplies are expected to grow to a record 15.1 billion bushels; farmers expect to plant 88.8 million acres of corn; yield expectations are up 163.4 bushels per acre; year-end surpluses are anticipated at 1.8 billion bushels, up from last year. In 2010/11, about 4.6 billion bushels of corn are anticipated to be used in ethanol.

Wednesday, April 7, 2010

US biofuels policy questioned

The U.S. government’s Renewable Fuels Standard represents a cost to consumers exceeding $5B per year, according to an analysis of current biofuels policy with specific reference to tax credits by Bruce A. Babcock, professor of economics at Iowa State University and the director of the school’s Center for Agricultural and Rural Development.
Federal subsidies include a fuel blenders’ credit of 45 cents per gallon for biofuels incorporated into gasoline and a protective tariff on imported ethanol of 54 cents per gallon.

Wednesday, February 17, 2010

2009 distillers grains exports break previous record

The U.S. ethanol industry exported 5.64 million metric tons of distillers grains worth nearly $1B in 2009, breaking the previous record set in 2008, according to data released last week by the U.S. Foreign Agricultural Service. Exports in 2009 were 24% above 2008 levels and more than five times higher than the amount of distillers grains exported as animal feed just five years ago.
The top three export markets were Mexico (1.5 million metric tons), Canada (804,000 metric tons) and China (542,000 metric tons). Turkey and Thailand ranked fourth and fifth, respectively.
Total U.S. distillers grains production in 2009 was approximately 30.5 million metric tons.
Ethanol biorefineries produce about one bushel of high-protein distillers grains for every bushel of corn that enters a facility, according to the
Renewable Fuels Association. The amount of distillers grains exported in 2009 is equivalent to the feed value of 5.4 million metric tons of whole corn and 1.6 million metric tons of soybean meal, according to displacement ratios developed by Argonne National Laboratory, a U.S. Department of Energy facility.