GoodFuels

Hope for Ethanol Industry

In case you have been under a rock lately - we have a new president and his name is Barack Obama. He brings “Hope” and “Change” to a nation in crisis.

Among the indicators that we are in the midst of a crisis - according to President Obama’s inaugural address - “each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.” Good reasons for us to continue on the road to energy independence and renewable fuels.

For this, President Obama says, “there is work to be done” which includes, “We will harness the sun and the winds and the soil to fuel our cars and run our factories.” He says, “All this we can do. And all this we will do.”

Many have been busy writing the ethanol industry’s obituary lately - something that has been done for at least 30 years now. But President Obama’s American Recovery and Reinvestment Plan calls for the doubling the production of renewable energy over three years and creating jobs in the development of new energy technologies. Sounds like hope for the ethanol industry is still alive.

Blend Issue at Confirmation Hearing

The “blend wall” issue for ethanol production was a topic at the Senate confirmation hearing this week for Secretary of Agriculture nominee Tom Vilsack.

Sen. John Thune (R-SD) questioned Vilsack about the “blend wall” issue and the need to increase the level of ethanol approved for regular vehicles above ten percent - up to 15 or even 20 percent - in order to meet the goals of the Renewable Fuels Standard (RFS).

“To meet the law will be a challenge unless we do a better job of accelerating research and development on a variety of second and third generation feedstocks for biofuels,” Vilsack said. “USDA has a very, very important role to play in making sure we provide the research and the focus and direction to meet whatever the requirements are.”

Vilsack also said he has already spoken with Environmental Protection Agency nominee Lisa Jackson about the biofuels issue and looks forward to working with her, but essentially he gave no indication of where he stood on the issue of increasing the blend level.

Here is a link to a YouTube video on this line of questioning at the hearing:
Vilsack Confirmation Hearing

Ethanol Industry Priorities for 2009

Stimulating economic growth, increasing blend limits, and finalizing the life-cycle greenhouse gas emissions issue are the three major priorities for the ethanol industry in 2009, according to the chairman of the Renewable Fuels Association.

Chris Standlee, who is executive vice president of the global biofuels company Abengoa Bioenergy, called on Congress and the Obama administration to recognize and continue to build upon the success of agriculture and the ethanol industry as they work to stimulate the economy and create green jobs. “Ethanol is one of the original green jobs,” said Standlee, and they would like to see any stimulus package include provisions for ethanol producers to obtain credit and capitol necessary to build new biorefineries and deploy new technologies for next generation ethanol.

Standlee says modernizing the blend level for ethanol in vehicles is critical for the success of the Renewable Fuels Standard. RFA believes that all vehicles can immediately accommodate ethanol blends of 12-13 percent, which will help in the short term, but long term that needs to be increased to 15 or even 20 percent. “Preliminary data shows that such a move is possible and practical,” said Standlee.

Finally, RFA is actively involved in EPA’s development of life-cycle greenhouse gas emissions modeling and the issues related to indirect land use. “The scientific community is far from consensus on these issues,” said Standlee. “It’s imperative that EPA consider the litany of issues and variables surrounding this discussion, including appreciating the fact that the environmental footprint of petroleum is getting worse over time.”

Listen to Chris Standlee outlining the industry’s priorities here: