GoodFuels

POET in Motion

Apparently POET is too busy building and opening ethanol plants to read the headlines and know that the financial world as we know it is coming to an end.

The world’s biggest ethanol producer just keeps getting bigger, opening a new plant today in Fostoria, Ohio and announcing another plant opening in the same state at the end of October.

In fact, POET may be looking to get even bigger through acquisitions, according to this story from the Ottawa Citizen, which quotes CEO Jeff Broin saying that the financial crunch has made it the best time “in at least five years” to do so.

Obviously, he has not heard that the financial crisis “may delay biofuels development,” as Reuters reported this week from an interview with the CEO of BlueFire Ethanol. The fear is that the crisis will stifle cellulosic ethanol development because it has “raised project finance costs and made ambitious targets to replace fossil fuels with renewable energy sources look less achievable.” Just last month, POET announced they would complete construction on a $4 million pilot-scale cellulosic ethanol production facility by the end of this year and Jeff Broin said he is “more confident about the future of cellulosic ethanol than ever before.”

Some ethanol producers have been affected by bad financial decisions lately, no question. But, with corn prices heading back down (futures dropped below $5 today), those who are the most fiscally responsible will continue to turn a profit and keep moving forward. I’m no economist, but it seems that one of the best solutions to our financial problems is to invest even more into domestic, renewable sources of energy that produce jobs and keep more American dollars here at home rather than sending them overseas.

Good Fuel in Maryland

Here’s a great story about ethanol in Maryland from the Baltimore Sun, written by Ted Shelsby “On the farm.” I didn’t even know they still had farm reporters for newspapers in major metro areas on the east coast!

The story talks about the opening of E85 pumps in Maryland at stations in Rockville, Frederick, Takoma Park and Germantown. It quotes Lynne Hoot, executive director of the Maryland Grain Producers Association, as saying that E-85 was not only putting more money in the pockets of motorists, it was also helping farmers pay their bills.

It also quotes Maryland Governor Martin O’Malley from a press conference he held last month announcing the four new E85 stations. In a press release from that announcement, O’Malley said, “With these new E-85 facilities, we’ll continue to make Maryland’s transportation fleet less dependent on fossil fuels, strengthening the energy future of our State for generations to come. These upfront investments in our alternative fuel infrastructure position Maryland to take advantage of the rapid advances in the next generation of non-food-based ethanol while reducing greenhouse gas emissions.”

It’s very important to notice that he made the point that investing in first generation ethanol will help advance the next generation of the fuel. That shows great foresight that some other governors could use - like maybe Rick Perry of Texas?

It’s also important to note that Maryland is a pretty big poultry producing state and there are no quotes in the article from poultry producers complaining about ethanol production, which is interesting, but it does point out that ethanol has helped increase grain prices for farmers in Maryland and lower gas prices for consumers. Unusually one-sided reporting in favor of ethanol - kind of refreshing!

Feed AND fuel

The Renewable Fuels Association has released a paper on the ethanol co-product distillers grains, proving once again that this nation’s ethanol producers are capable of feeding and renewably fueling this nation simultaneously.

When ethanol is produced, only 2/3 of the bushel of corn is used. The remaining third of the bushel goes back into the markets as a nutrient rich livestock feed.

America’s ethanol producers delivered 23 million metric tons of distillers grains last year, “roughly equivalent to the combined total amount of feed consumed by cattle on feed last year in Texas, Kansas, Nebraska, and Colorado-the nation’s four largest feedlot states.”

The report is available on the RFA website.