GoodFuels

Optimism in the Ethanol Industry

Renewable Fuels Association president and CEO Bob Dinneen says he has been accused of “whistling past the graveyard, ignoring the very real challenges facing the industry.”

“But let me assure you; I am acutely aware of the difficulties you’re up against in this unprecedented economic climate, and the RFA is as committed as ever to creating new marketplace opportunities, improving the financial strength of every plant and continuing the evolution of this dynamic industry,” Dinneen said during his annual State of the Industry address to the National Ethanol Conference on Tuesday.

Dinneen outlined the accomplishments of the industry in the past year, along with the challenges he sees ahead.

The accomplishments include record production at more than nine billion gallons, economic growth of 34 percent, another 240,000 jobs, and 85 percent operating capacity despite recent plant closures. The challenges involve breaking down the blend wall, communicating the very low carbon footprint of ethanol, and accelerating the commercialization of cellulosic ethanol

Dinneen stressed the need for unity in the ethanol industry - both domestically and internationally. “Our industry must reject division and approach the challenges that face us all with the same spirit of cooperation, dedication and vigor that has always served us well,” he said. Dinneen also announced that the national ethanol trade associations of Canada, Europe and the United States are joining together in a Global Alliance to educate and promote ethanol in international forums.

The mood at the conference would be surprising for those who are writing the industry’s obituary and despite the economy, attendance at the meeting is only down a few hundred from last year - at least 1500, but I think more than that. That’s a whole bunch of people whistling past the graveyard.

Follow all the proceedings of the National Ethanol Conference here on the RFA Ethanol Report.

Obama/Harper meeting column

On the eve of an historic meeting between President Obama and Prime Minister Harper, The Cutting Edge has posted a column written by RFA’s Bob Dinneen and the Canadian Renewable Fuels Association’s president, Gordon Quaiattini. The two men write about North America’s approach to biofuels and the cooperation between the two countries required to encourage the use of renewable fuels in both countries.

As America and Canada look for ways to provide economic opportunity, reduce the impacts of climate change, and develop renewable energy sources, the role of biofuels in the energy plans of both nations is becoming increasingly important. Both nations are investing in alternatives to imported oil. For his part, President Obama is pushing for a comprehensive and ambitious plan to invest in alternative and renewable energy to diversify the North American fuel supply, address climate change, and create green manufacturing jobs and a new green economy. The biofuels industry has been in the forefront of creating green jobs for decades.

The column also talks about various recent studies that support the increased use of biofuels.

In addition, renewable fuels can help reduce harmful greenhouse gas emissions from motor vehicles, a leading contributor to climate change. For instance, newly published work in the Journal of Industrial Ecology notes that ethanol technology today reduces greenhouse gas emissions by up to 59 percent compared to gasoline.  As new technologies are developed and current technologies improved upon, renewable fuel production and use will further help mitigate the dangerous consequences of global climate change.

Finally, based on a number of recent studies, it is clear that renewable fuels using both grains and cellulosic feedstocks are better for the environment than gasoline. A study by Sandia National Laboratories found that by itself the US could produce 90 billion gallons a year by 2030. Together with production in Canada, using the same type of analysis, North American biofuel production will be able to replace a majority of our oil imports.

What do you think Canada and the United States could be doing to help build both country’s renewable portfolio? Leave your thoughts in the comments.

Sen. Bingaman supports ethanol

Via Green Inc, the New York Times’ environmental blog:

New Mexico Senator Jeff Bingaman, chairman of the Senate Energy and Natural Resources Committee, said yesterday that Congress may need to help the ethanol industry in light of recent economic shifts.

“Obviously the ethanol industry is in some difficulty now,” Senator Bingaman said in an interview. Mr. Bingaman said he sympathized with the industry’s desire for more loan guarantees and said he thought government regulations that limit ethanol content to 10 percent of most gasoline blends should be reconsidered.

“I believe we could go to E-12, or E-14 or E-16 without causing any great problems with vehicle operation,” he said.

He made additional comments about the blending levels of ethanol in gasoline:

“There is no doubt when we wrote that bill in 2002 we did not anticipate the recession we are currently sinking into,” Senator Bingaman said. “Exactly what that requires us to do as far as changing the law I am not clear on yet. It’s possible we will have to look at the targets again.’’

The NYT also points to this statement from the Obama administration in January:

“We recognize that the biofuels industry – like so many other industries – is struggling under a faltering economy. We are working with Congress and assessing ways to help the industry as a whole in the stimulus package, as investing in advanced biofuels is important to the President’s broader goals of reducing dependence on foreign oil and growing rural economies.”

Here’s hoping the blend wall gets raised.