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December 10, 2012
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The News Source for the Ethanol Industry

  Top Story 
  • Report: Much of criticism against RFS was unwarranted
    Much of the criticism directed at the Renewable Fuel Standard this summer was unwarranted because the markets, not the RFS, are the driving force behind the ethanol industry's expansion, according to a new report from the Federal Reserve Bank of Kansas City. "Although mandates were key in supporting biofuel expansion several years ago, the ethanol industry is increasingly market driven. Accordingly, market-based incentives emerging from crude oil and corn markets will stake the path forward," wrote Nathan Kauffman, the report's author. Farm Futures (12/10) LinkedInFacebookTwitterEmail this Story
  Market Update 
  • Oil price is the major driver of food-price inflation, exec says
    A Minnesota newspaper editorial board is wrong to link ethanol and the Renewable Fuel Standard to "skyrocketing" food prices because the price of oil is a bigger factor in food costs than biofuel production, writes Timothy Rudnicki, executive director of the Minnesota Bio-Fuels Association, in a letter to the editor. Data from the U.N.'s Food Price Index and the Energy Information Administration's World Crude Oil Price show a "nearly one-to-one correlation between crude oil prices and food prices," Rudnicki writes. The Journal (New Ulm, Minn.) (12/8) LinkedInFacebookTwitterEmail this Story
  • Analysis: Cost of U.S. biodiesel driving demand for Brazilian ethanol
    The demand for advanced biofuels under the Renewable Fuel Standard is behind the recent surge in Brazilian ethanol exports to the U.S., write Scott Irwin and Darrel Good, agricultural economists at the University of Illinois. Blenders can save money by using Brazilian ethanol rather than U.S. biodiesel to meet their advanced-biofuel commitments under the RFS, Irwin and Good note. However, the potential return of the $1-per-gallon biodiesel blender's tax credit could swing the balance back in favor of U.S. biodiesel and provide more room for U.S. ethanol under the E10 blend wall, the authors add. Farmdoc Daily (University of Illinois) (12/7) LinkedInFacebookTwitterEmail this Story
  Technology & Trends 
  • EPA ruling is expected to boost demand for grain sorghum in Neb.
    The Environmental Protection Agency's approval of grain sorghum as an eligible feedstock under certain conditions under the Renewable Fuel Standard is expected to boost demand for the grain in Nebraska. According to the EPA, ethanol from grain sorghum can qualify as either a conventional or advanced biofuel, depending on the technology used in the production process. Fourteen U.S. ethanol plants have used grain sorghum to make conventional ethanol, while the Western Plains Energy ethanol plant in Kansas is the most prepared to use it for advanced-biofuel production, said Tim Lust, CEO of National Sorghum Producers. Lincoln Journal Star (Neb.) (tiered subscription model) (12/9) LinkedInFacebookTwitterEmail this Story
  • EPA's ruling on grain sorghum delights Kan. governor
    Kansas Gov. Sam Brownback is pleased with the Environmental Protection Agency's decision to approve certain pathways for grain sorghum as a qualified feedstock under the Renewable Fuel Standard. "This pathway will open the door for Kansas sorghum farmers and Kansas ethanol plants to help meet both the conventional biofuel and advanced biofuel mandates under the RFS," Brownback said. Kansas is the nation's biggest producer of grain sorghum, and about 60% of the ethanol made in the state comes from the grain, he added. The Topeka Capital-Journal (Kan.) (12/7) LinkedInFacebookTwitterEmail this Story
  • Miss. researchers study biofuel potential of marine algae
    Researchers from the University of Southern Mississippi are looking into the biofuel potential of microalgae grown along the state's coastline as part of a global initiative to develop algae-based fuels. "We now look for one that produces large oil droplets that what became oil in past million years ago," said Donald Redalje, a professor at the Department of Marine Science in USM. "Now we're finding ways to promote cells to produce a whole lot of these oil droplets." The Clarion-Ledger (Jackson, Miss.) (12/8) LinkedInFacebookTwitterEmail this Story
  Policy Watch 
  • Ore. regulators OK initial step in clean-fuels plan
    The Oregon Environmental Quality Commission voted 4-1 to move forward with a rule directing fuel marketers to report the carbon content of motor fuels sold in the state. It is now up to Oregon's lawmakers to decide whether to require those firms to reduce the carbon in their fuels by 10% per gallon by 2025. Gov. John Kitzhaber has said his administration won't authorize the reduction unless the 2015 sunset date of the state's clean-fuels initiative is extended. The Oregonian (Portland) (12/7) LinkedInFacebookTwitterEmail this Story
  • Survey: Governments are supportive of biofuels
    A survey conducted by the organizers of the World Biofuels Markets Congress & Exhibition found that 51% of respondents said their government's policy is supportive of their industry. Also, 46% of respondents expect to see more initial public offerings in the biofuels industry in the next year. BiofuelsDigest.com (12/10) LinkedInFacebookTwitterEmail this Story
  Global Agenda 
  • Germany's Verbio says domestic plants are running as normal
    Germany-based Verbio Vereinigte BioEnergie's domestic ethanol and biodiesel plants are running at normal rates after the company announced that it is canceling investment plans in Serbia, Hungary and Germany, said spokeswoman Isabel Rossberger. The company cited greater competition from Indonesia and Argentina and regulatory uncertainty in the EU for its decision. Bloomberg (12/6) LinkedInFacebookTwitterEmail this Story
  • BP commits $350M to boost capacity of Brazilian ethanol project
    BP is committing $350 million to double the capacity of its Tropical ethanol plant in Brazil by the end of 2014 or early 2015. BP is planning to develop more than 86,000 acres of sugarcane plantations and a new mill with a crushing capacity of 2.5 million tons annually in Edeia, Brazil, said Mario Lindenhayn, CEO of BP's biofuel unit in Brazil. "BP is in it for the long run," Lindenhayn said. Bloomberg Businessweek (12/7) LinkedInFacebookTwitterEmail this Story
  RFA & Member News 
  • Why You Should Attend the National Ethanol Conference
    The National Ethanol Conference is recognized as the preeminent conference for delivering accurate, timely information on marketing, legislative and regulatory issues facing the ethanol industry. "Adkins Energy is currently celebrating our 10th year of operations and we are proud to say that the NEC has been a valuable event for our company during each of these years. We have consistently sent management and board members to represent our company, giving our leaders the opportunity to network and learn something new. The NEC provides a perfect opportunity to meet with a broad range of people in the industry, and consistently bring back new ideas and strategies that will provide our company future value. The atmosphere is open and the venues are always accommodating -- it is great to know that you can be in one general area and have the ability to meet with everyone you hoped to without difficulty." Ray Baker, general manager at Adkins Energy, Lena, Ill. Learn more and register. LinkedInFacebookTwitterEmail this Story
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  SmartQuote 
Alas for those that never sing, But die with all their music in them."
--Oliver Wendell Holmes Sr.,
American physician, writer and poet


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