GoodFuels

Ethanol Report on 2008

In this edition of the “Ethanol Report” podcast, we take a look at 2008 - a challenging year full of surprises for the ethanol industry. This report features comments from this past year made by Renewable Fuels Association President Bob Dinneen, RFA Chairman Chris Standlee of Abengoa Energy, former Secretary of Agriculture John Block, EPA Administrator Stephen Johnson, and RFA Communications Director Matt Hartwig.

You can listen to “The Ethanol Report” on-line here:

Or you can subscribe to this podcast by following this link.

Reflections on 2008

Some might say 2008 was a bad year for ethanol, what with the heightened criticism, price volatility, bankruptcies and such.

However, there were some very notable highlights that at least offset the bad news, if not outweigh it.

First and foremost would be the EPA decision to deny the governor of Texas a partial waiver of the Renewable Fuels Standard (RFS). This was a major victory for the ethanol industry in the first test of the RFS. In addition, it was a major blow to the food versus fuel critics, as the EPA ruling noted that a “waiver would have no impact on ethanol production volumes in the relevant time frame, and therefore no impact on corn, food, or fuel prices.”

Secondly, despite all the challenges faced by the industry this year in the form of market volatility, ethanol producers stepped up to the plate and actually exceeded the RFS goal of nine billion gallons this year. According to the Renewable Fuels Association, ethanol production will top ten billion gallons in 2008.

Another high point for ethanol was the presidential election, in which renewable energy was a major campaign issue. The ethanol industry played an active role in both the Democratic and Republican national conventions, drawing attention to the importance of renewable fuels in helping to make the country less dependent on foreign oil.

The number of E-85 pumps increased by about 40 percent nationwide in 2008, getting close to the 2000 mark at this point. In addition, several states began blender pump initiatives giving flexible fuel vehicle owners the choice of filling up with E20, E30, E40 or E85.

Finally, development of cellulosic technology in 2008 continued to bring the next generation of ethanol closer to reality.

All in all, not a bad year - here’s to an even better 2009!

Ethanol Report on Current Events

In this edition of the “Ethanol Report” podcast, Renewable Fuels Association president Bob Dinneen talks about President-elect Obama’s cabinet choices, input from the ethanol industry on “green jobs”, and why he believes the industry will meet future goals for cellulosic production under the Renewable Fuels Standard.

You can listen to “The Ethanol Report” on-line here:

Or you can subscribe to this podcast by following this link.

Canada setting positive example

In Canada, yesterday, with the IGPC farmer- owned ethanol plant in Ontario holding its official opening, Canada has now passed the one billion litres per year production level for ethanol. This marks the halfway point towards hitting the federal renewable fuel standard target of 5% renewable content in gasoline by 2010.

And, last week, Alberta (the Canadian province which produces over one million barrels of oil per day, has reserves of crude second only to Saudi Arabia in the world, and is the single largest exporter of oil to the U.S.) announced they are moving to a renewable fuel standard of 5% ethanol and 2% biodiesel by 2010; a very significant development. This province is building on their strong energy and agricultural sectors, moving towards creating new green jobs and diversifying both industries. Not only is Alberta a large producer of wheat and canola for ethanol and biodiesel production, respectively, but as was announced this past June, the Edmonton municipal landfill will see the world’s first commercial-scale waste to ethanol facility being built there next year.

Both positive announcements show Canada continues to grow beyond oil.

Ethanol Can Survive

Ethanol production is a business and like all businesses, survival depends on making good decisions.

Much has been made lately about bankruptcies and plants closing, but the majority of producers are still in business and some are even making a profit in this year of very tight margins.  One example is Golden Grain Energy in Mason City, Iowa.

Agri-News has a nice article with Walt Wendland, president of Golden Grain Energy, who talks about how his company has managed to survive this year.

“Golden Grain wasn’t speculating this summer when others were,” Wendland said at last week’s Worth County Corn and Soybean Clinic in Northwood. “Anyone who followed the VeraSun situation, they talked about the fact that corn was going to go down in May and they shorted corn and they got out at $8 and then they went long corn on the way down. That’s not the way this industry can survive.”

Wendland believes the key to survival of the industry in the future is increasing ethanol blends from 10 percent to 12 percent or 15 percent sometime next year.

“We need to work with the EPA and automakers” to make that happen, Wendland said.