GoodFuels

Bug Genes Hold Cellulosic Ethanol Promise

The ability of some creepy, pesky insects to digest leaves and wood may hold a key to advancing the production of cellulosic ethanol from biomass.

Researchers at the University of Florida have been studying termite guts to figure out what genetic sequencing allows those insects to churn wood into fuel. That ability involves a mixture of enzymes from symbiotic bacteria and other single-celled organisms living in termites’ guts, as well as enzymes from the termites themselves, which could ultimately improve the production of cellulosic ethanol. Once the genetic sequence that produces the enzymes can be isolated, it could be transferred into genetically modified fungi or bacteria, or possibly into other insects, such as caterpillars, to produce the enzymes on an industrial scale.

Meanwhile, scientists at the University of Wisconsin-Madison and the and Great Lakes Bioenergy Research Center (GLBRC) have been doing similar work with leaf cutter ants. In this case, they are looking at the spongy fungus gardens that the insects grow themselves. Some of these ant communities have a picky appetite and only eat certain types of plant leaves; others are omnivores and digest the cellulose in a wide variety of leaves. GLBRC is studying the fungi and bacteria from these communities to identify microbial enzymes that can help generate fuels from the cellulose, or non-edible, part of the leaf.

“Insects have played an important role in how this planet functions for millions of years,” says University of Flrodia entomologist Mike Scharf. “There are still many ways we can learn to benefit from Earth’s six-legged inhabitants.”

Whatever works.

Early Christmas for Ethanol Producers

The Wall Street Journal is calling it “Christmas in October for Ethanol” and the forecast does seem to indicate a cheery holiday season for the industry.

Ethanol producers have been seeing some pretty good profit margins lately, especially compared to last year at this time. Last week, ethanol processing margins nearly doubled to a dollar a bushel. Since early July, ethanol futures on the Chicago Board of Trade have increased more than 20%, while corn futures have only gone up about five percent.

Commodity analyst Joe Victor of Allendale, Inc says that profitability has returned to the ethanol industry. “We know that over the past three months that there is profit returning, above and beyond all costs. Ethanol companies are turning a profit over the past three months.”

Proof of that is more ethanol plants returning to production. Ethanol Producer Magazine reports that the number of plants idled has decreased from 36 in the spring to 24 this fall. The publication’s latest plant map shows total U.S. ethanol production capacity is nearly 12 billion gallons.

This is all great news, but what producers are really hoping for is a nice early Christmas present from the Environmental Protection Agency, which is due to rule on the industry request allowing gasoline blends to contain up to 15 percent ethanol by December 1. That would make for a very Merry Christmas in Ethanol Land.

Reflections from the Father of Ethanol

Merle Anderson is often called the “Father of Ethanol” because in 1977 he helped to start the American Coalition for Ethanol (ACE) . He even has an award named after him, which this year went to David Hallberg who formed the Renewable Fuels Association in 1981.

Looking back over the years, Merle thinks the ethanol industry has done well. “We’ve done some really good things,” he said in an interview at the 22nd annual Ethanol Conference and Trade Show. “I think we’ve helped farmers an awful lot. I think we’ve done what’s right for America. When you talk about the transfer of wealth, I think we’ve helped a little bit –could of and should have done more. And I always have an interest in supporting our troops.”

Anderson says ethanol could do more to lessen our dependence on foreign oil if the auto industry would “stand up and admit that their vehicles will operate successfully on higher blends.”

“We’ve been successful in creating production,” he said. “We haven’t worried enough about selling the product, and we have got to solve this if the industry is going to move forward.” Anderson helped to get some of the first blender pumps installed in Minnesota and he knows that “higher blends is the answer to our problems.”

Listen to an interview with Merle Anderson by Domestic Fuel reporter Joanna Schroeder here:

Corn Crop is Growing

Call it the Energizer Corn Crop - it just keeps growing and growing…

USDA is now calling for five percent more corn to be produced in the United States this year than last year, at almost 12.8 billion bushels – just two percent less than the record 2007 crop. A forecast yield of 159.5 bushels per acre would also be the second highest on record, behind 2004. The acreage survey that was redone for a number of states was left basically unchanged.

Analyst Peter Georgantones of the Minnesota-based Investment Trading Services says farmers seem very pleased with their crop. “I have been doing this for 22 years now and I have never had a year like this one where farmers all over the Midwest really are not complaining - and farmers love to complain!”

Even better, USDA’s World Agricultural Supply and Demand report estimates corn use for 2009/10 will be higher with U.S. corn supplies are projected at a record 14.5 billion bushels, up 134 million from the previous record in 2007/08. “Food, seed, and industrial use is raised 100 million bushels with higher expected use for ethanol supported by favorable ethanol producer returns and strong incentives for ethanol blending,” USDA predicts. They also added another 100 million bushels for feed and residual use and another 150 million in exports.

Despite critics who challenge our ability to produce food, feed and fuel for the world, the American farmer just keeps growing and growing…

E-fuel Microfueler debuts

The first installation of the new personal home ethanol system E-fuel Microfueler from GreenHouse has just been announced - and it was installed at Microfueler investor (and famed basketball player) Shaquille O’Neil’s house!

The Microfueler, which we told you about back in June when Governor Schwarzenegger was promoting the machine, converts organic waste (beer yeast) into 100% ethanol then pumps the ethanol directly into your car. Currently, however, the only cars that can run on pure ethanol are IndyCar racing cars.

Shaq is enthusiastic about the Microfueler, saying that “once (he) saw the GreenHouse business plan, (he) was committed to GreenHouse and the E-Fuel solution.”

But where are you supposed to get organic waste? The Microfueler has you covered. Gas 2.0 says that “the GreenHouse team delivers raw material and maintains the home-based unit as part of its service package.” In fact, they’ve partnered with several companies to provide liquid waste to be used in the ethanol production process.

The company is shooting for commercial distribution on Southern California and Arizona by the end of the year, and is already taking orders.

So now clean burning renewable ethanol is available to make yourself? What a victory! Congratulations Shaq on your new Microfueler!

Learn more about the Microfueler here.