“This research is demonstrated proof of the viability of ‘generation 2.0 ethanol,’” NCERC Director John Caupert said. “By utilizing existing technologies readily available in the commercial marketplace, the Center was able to produce a biofuel that builds upon the strengths of conventional corn ethanol and the promise of cellulosic ethanol, thus making bolt-on cellulosic ethanol a reality.”

Caupert added that the potential for cellulosic ethanol has significant immediate and long-term impacts on the biofuels industry generally and the ethanol industry specifically. “Any of the 211 existing ethanol plants in the United States could be retrofitted with existing bolt-on technologies to produce cellulosic ethanol from corn without the need to build new facilities,” Caupert said. “This translates into opportunities for jobs and economic development, particularly in rural areas.”

On average, 8 to 9.5% of the corn kernel is fiber, of which about 5% is in the pericarp. NCERC Assistant Director of Biological Research Sabrina Trupia will be presenting more information about the new development at the Fuel Ethanol Workshop June 4-7 in Minneapolis.

The NCERC at Southern Illinois University, Edwardsville is a nationally-recognized research center established through federal and state initiatives, with support from the Illinois and National Corn Growers associations, and dedicated to the development and commercialization of biofuels, specialty chemicals, and other renewable compounds.

“Imagine if the refineries found a magic bullet that could squeeze ten percent more gasoline out of a barrel of crude oil,” says Professors Dermot Hayes. “We have found a magic bullet, and that is we produce an amount of ethanol equal to about ten percent of the gasoline that we consume.”

That is one reason that Hayes, with lead author Xiaodong Du of the University of Wisconsin, found in an updated study released by the Center for Agricultural and Rural Development (CARD) this week that the growing use of American ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011, up from an average impact of $0.89 per gallon in 2010. The study also found the between 2000 and 2011, gasoline prices have been reduced by an average of $0.29 per gallon, thanks to ethanol.

“Those numbers are large,” said Professor Hayes during a conference call on Tuesday during which he explained his hypotheses for the big impact of ethanol. “Think about the world before ethanol occurred. Every time a gasoline refinery would shut down, the price of gasoline would go up 10-20 cents because the U.S. was at its refinery capacity. What ethanol has done is increased refinery capacity.”

The savings are even more significant in the Midwest, where the study found pump prices would actually be $1.69 more per gallon without ethanol.

Listen to Hayes’ explanation of the study here: ISU Professor Dermot Hayes

While the president was talking about the Berlin Wall, we’re talking about the Blend Wall – but both are symbols of freedom denied.

As Ken said in the previous post, freedom means choice. The Berlin Wall served to prevent freedom of movement, the blend wall is serving to prevent freedom of fueling.

“For the time being, I think we are at a blend wall and it’s a pretty hard wall,” said USDA chief economist Joe Glauber during a recent gathering of farm broadcasters in Washington DC. Glauber says the general feeling now is that the blend wall is about 13.5 billion gallons. “What gets produced in excess of that has to go out through the export market,” he said. “Last year we had a spectacular year, exporting more than a billion gallons, but most people think that won’t happen this year.” He expects Brazil in particular will not import as much ethanol this year.

The industry is moving steadily toward the 15 billion gallon corn ethanol cap under the Renewable Fuel Standard (RFS2) but Glauber says right now the market is steady at about 10 percent of ethanol blended fuel as getting E15 in the marketplace is slowly becoming reality. “But you still have the underlying economics of whether or not a gas station is going to change over equipment to be able to sell E15,” he said. “The likely thing would be so-called blender pumps, which are expensive propositions.”

The expense of putting in blender pumps for stations can be offset by numerous federal, state and industry programs that offer grants and incentives to stations, but the oil companies are still putting up walls to discourage station owners from doing so. Last week, the American Petroleum Institute (API) proclaimed that EPA approval of E15 poses “serious safety and environmental concerns for consumers” because “an estimated half of all gasoline station equipment is not compatible with E15.”

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty, who owns and operates a Sioux Falls convenience store, found that surprising since most of pumps and tanks have been tested for decades using at least 15% ethanol. “Underwriters Laboratories (UL) listing for petroleum equipment requires that they pass dozens of tests using fuel that contains 15% ethanol and their listing for tanks and piping defines “alcohol-gasoline mixtures” as any level of ethanol or methanol up to and including 100%,” he said, adding that the pumps at his station are warrantied for E15, and his tanks and lines are compatible with gasoline ethanol blends. “My biggest infrastructure problem with E15 is that the API-member oil company that supplies my station won’t let me sell it,” he said.

While there are some legitimate concerns with infrastructure, the industry is actively working with all stakeholders to address any safety issues regarding E15, including a website dedicated to E15 information (www.E15fuel.org), a misfueling mitigation plan to help retailers avoid confusion, and an E15 Retailer Handbook for gas station owners seeking to offer E15. But all of that requires the cooperation of the oil companies that control a majority of fueling stations to make it happen.

For the sake of fueling freedom, we challenge the oil companies – “Tear down this wall” – sooner rather than later.

If climate change occurs at a rate predicted by some in areas predicted by others accompanied by a rash of severe 

Does the above sound like a run-on sentence culminating in a premise based on a lot of supposition? It may be, but so-called experts who extract their living by sensationalizing strung-together worst-case scenarios would actually strike down the laws decreasing our dependence on foreign oil using that very same logic.

Worrying over potential situations that might occur down the line if a variety of circumstances come together to create a perfect storm is one of the fastest ways to ensure progress halts.  True, policy and regulation should consider the likely consequences of implementation, but these consequences should be likely, imminent and balanced against the problems the policy addresses.

In this case, arguing against implementation of the Renewable Fuel Standard because price volatility possible under a very specific vision of the future throws out the baby with the bathwater.

The RFS helps keep gas prices down for consumers, decreases dependence on foreign oil and reduces the environmental impact of transportation. It does this today. It does this well.

Bleak future forecasts fail to factor in the constant improvements in agriculture which consistently allow farmers to grow more, under more difficult circumstances, using fewer inputs.  In the last 20 years alone, ethanol yields have increased by 10 percent, thus requiring less corn to make the same amount of fuel. At the same time, corn yield have risen by 39 percent, thus requiring much less land to produce the same amount of corn.  Assuming that today’s crop will not continue to improve, thus looking the same another 20 years down the line, is foolish at best and disingenuous at worst.

Furthermore, ignoring the fact that these presumptions assume the ability to predict the weather 20 years out when most news channels would thrill at an accurate forecast for the weekend, the naysayers ignore the new, dynamic corn traits farmers are planting this year.  With the first drought-tolerant traits already preserving yields under tough conditions, it makes sense that the scientists developing the next generation will improve seed technology enabling growers to meet demand under a variety of scenarios.

Right now, American consumers need ethanol.  Right now, it is improving our national security, our air, our rural economies and our fuel prices.  Do not let prophets of doom cloak their predictions in science, thus repealing the progress toward a cleaner, safer, more energy independent America.

American ethanol works constantly to improve, as do America’s farmers.  Allow them to continue their progress while the country continues to benefit.  Situations change, but the only way to make progress is to take a step forward without constantly shuffling back.

The poll, conducted by American Viewpoint, also validates some of the most important ethanol industry legislative priorities – including maintaining the Renewable Fuel Standard (RFS), commercializing E15, providing incentives for the development of cellulosic ethanol, limiting tax incentives for the oil industry, and requiring automobile manufacturers to build cars that will run on fuel sources other than oil.
Here’s some of the specifics:

- 61% percent of those polled said they supported the RFS
- 58% of respondents said they were very likely or somewhat likely to buy fuel containing 15% ethanol
- 65% percent said they supported incentives to help expand cellulosic ethanol production
- 69% said they opposed tax subsidies and other incentives for petroleum companies
- 75% favor requiring automobile manufacturers to build cars that will run on fuel sources other than oil

Some will say that since the poll was commissioned by the ethanol industry that the results are to be expected, but the questions were carefully worded by the polling company American Viewpoint in such a way as to not be leaning towards a certain outcome. The poll was conducted via telephone March 27-29, 2012 with a sample size of 1,000 and a margin of error of +/- 3.1%. By any standards, it is a well-conducted, statistically significant poll.

The RFA will be taking the poll results to Capitol Hill this week to show lawmakers that the desire to make America less dependent on oil is shared by a majority of the American people – not just corn growers and the ethanol industry.

Read more about the poll here.

Sanjeewa Ranathunga was recognized for his research at the recent annual meeting of the Midwest American Dairy Science Association meetings with the Young Dairy Scholars Award.

Ranathunga is in the final stages of his Ph.D. program in dairy cattle nutrition at South Dakota State University under the guidance of Dr. Kenneth Kalscheur, Associate Professor in Dairy Science. During his time at SDSU, Ranathunga has conducted valuable research looking at DDGS and their impact on dairy cattle diets.

Ranathunga began his Master’s program at SDSU in dairy cattle nutrition under Kalscheur after completing an M.S. in Biochemistry at Pukyong National University in Busan, South Korea.

His Master’s research demonstrated that the non-forage fiber provided from DDGS and soyhulls can effectively replace starch provided by corn in dairy cow diets without negatively affecting the performance of dairy cows.

This research revealed that DDGS can be used as an effective energy source to replace high priced corn, and can decrease the feed cost of the diet. According to income over feed cost analysis, an economic advantage if $1.42 per cow per day was observed in this study when feeding the 21 percent DDGS diet compared with 0 percent DDGS diet.

Read more from iGrow.org.

Senators Kent Conrad (D-ND), Max Baucus (D-MT) and John Hoeven (R-ND) unveiled what they are calling the “Revenue Loss Assistance and Crop Insurance Enhancement Act of 2012″ which they say reduces farm program complexity and duplication, strengthens the federal crop insurance program, permanently extends livestock disaster assistance, and would serve as a major component of a new Farm Bill.

The senators say the legislation would maintain a strong safety net for producers and still contribute to deficit reduction. “This proposal complements crop insurance, is much easier to administer than current farm programs, and gives our family farmers the support and flexibility they need to succeed,” Senator Conrad said.

Senator Baucus says the concept is one that agriculture interests have indicated they will support. “This bill is written with the direct input of the farmers and ranchers out there getting dirt under their nails every day to keep food on our tables,” he said. “I look forward to working with our colleagues to roll these priorities into a larger Farm Bill we can all be proud to support.”

In other action, Senators Tom Harkin (D-IA), Kent Conrad (D-ND), Amy Klobuchar (D-MN) and Al Franken (D-MN) introduced legislation to reauthorize and fund the primary energy programs included in the current Farm Bill. The Rural Energy Investment Act would include a mandatory total of $1.275 billion over 5 years to strengthen the biobased markets program, fund the Biorefinery Assistance Program, reauthorize and fund the Rural Energy for America Program (REAP) and more.

“We can and we must transition to cleaner, more sustainable energy systems, and rural America will play a crucial role in this transition,” said Sen. Harkin. “As we are formulating the next farm bill, it is even more critical that we include strong programs that encourage production and use of biomass feedstocks for advanced biofuels and biomaterials, as well as assisting farmers and ranchers with adoption of energy efficiency and renewable energy technologies to replace their aging energy systems.”

During a telephone press conference this week promoting USDA’s Rural Energy for America Program (REAP), Vilsack was asked by a reporter what can be done to help the struggling ethanol sector right now.

“If you take a look at the long term history of ethanol, you’ll see that there are peaks and valleys in this commodity,” Vilsack noted. “Our focus is primarily on encouraging blenders to embrace E15. EPA has authorized the use of E15 and this obviously would be a God send.”

Vilsack added that they want blenders to register with EPA to get E15 in the market and they are looking for ways to encourage distribution. “At the same time, we’re also looking at alternative ways to produce ethanol through non-food feedstocks so we can spread the good work this industry’s doing in keeping gas prices down further than they would otherwise be.”

The secretary referenced an Iowa State University study that concluded ethanol helps save motorists up to $1.30 per gallon. “So we obviously need a robust biofuel industry,” he said.

Listen to of download Vilsack’s comments here: Secretary Vilsack on E15

Last week, the Environmental Protection Agency (EPA) approved the Misfueling Mitigation Plan (MMP) developed by the Renewable Fuels Association, which RFA president and CEO Bob Dinneen means the regulatory process is now essentially complete.

“The job now is largely the industry’s to make E15 a commercial reality and we are working hard to make sure that happens,” said Dinneen, and once the marketers receive their approvals, many consumers will be seeing a new, money-saving alternative at the pump. “Given the concern today of skyrocketing gasoline prices, with ethanol being $1 cheaper than gasoline today, any gasoline marketer wanting to utilize E15 is going to be able to offer that product less expensively than E10 or any other fuel that’s available.

Vice President of Technical Services Kristy Moore says RFA spent months developing the MMP. “The plan includes not only requirements for the label and appropriate use, it also includes tools and resources to insure that proper wording appears on shipping and product transfer documents and the development of a fuel survey,” she said.

To get clear information out to retailers, RFA also developed an E15 Retailer Handbook to explain the technical details of offering E15 to consumers. Director of Market Development Robert White says they are already taking the handbook to the streets. “As of today, we will have the new E15 retailer handbook in the hands of more than 13,000 retailers,” White said on Monday.

He added that they are advancing the commercialization of E15 through the BYO Ethanol campaign, a joint venture between the National Corn Growers Association, state corn grower groups, the American Coalition for Ethanol, and RFA.

Listen to or download an audio report about the latest developments toward E15 commercialization here: Ethanol Report on E15 Plan

Dr. Wally Tyner with Purdue University recently addressed the latest developments in GHG analysis at the 2012 National Ethanol Conference. Dr. Tyner presented actual data from the U.S. Department of Agriculture showing that in the last six years the world has added 105 million of crop land – mostly corn, soybeans, rice, rapeseed and wheat. “So, markets work – that’s basically the bottom line,” said Tyner.

The question is, how much of that can be attributed to biofuels? “Our estimate is that of that 105 million acres, 5.9 million is due to U.S. soybean and corn ethanol,” he said – or about 5.6%. “So, yes we’ve had a lot of land use change, and some of it’s been due to biofuels, but the lion’s share of it’s due to a lot of other things,” such as growing global population and increased income in countries such as India and China.

Tyner also presented some new estimates of carbon footprint, or land use versus biofuels production capacity for various feedstocks. “Our current estimate for corn is .18 hectares per thousand gallons of ethanol,” said Tyner. “That’s about a fifth of what the original Searchinger estimate was.” A hectare is approximately 2.5 acres.

The really good news Tyner’s research found was that using corn stover for cellulosic biofuels production showed zero land use change. “So in terms of greenhouse gasses, global warming, all of that, it’s golden,” he said, adding that miscanthus also shows great promise with .06 hectares per thousand gallons, but switchgrass did not show up much better than corn at .15.

Tyner is the first to admit that all of this can change and every economic is uncertain, so the debate over land use change could continue “forever.”

Listen to or download an interview with Dr. Tyner here: Dr. Wally Tyner