biofuels
USDA, NAVY Launches Effort to Encourage the Development and Use of Renewable Energy
FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE:
New Initiative Will Enable Biofuels to Power Navy Fleet, Spur Economic Opportunity in Rural America
HONOLULU, April 6, 2010 - Agriculture Deputy Secretary Kathleen Merrigan and Assistant Secretary of the Navy for Energy, Installations & Environment Jackalyne Pfannenstiel today kicked off the first of several energy forums to look at ways to increase biofuels production and meet the Navy's renewable energy needs. The forum comes as a result of the Memorandum of Understanding (MOU) recently signed by the USDA and the Department of the Navy to encourage the development of advanced biofuels and other renewable energy systems.
"As we continue to expand efforts to build a clean energy economy, create new jobs and reduce our dependence on foreign oil, we can use the Navy's fleet as a catalyst to increase demand for biofuels and spur economic opportunity in rural communities throughout the country," said Agriculture Deputy Secretary Kathleen Merrigan. "President Obama has an ambitious renewable energy agenda, and the USDA/Navy partnership we are highlighting today is a critical step to enhance America's energy security."
Indirect Land Use Change: What It Is, What It Isn’t, and Why It It’s Flawed
From Growth Energy
Since the publication of a controversial study last year (Searchinger et al 2008), a new term has entered the policy debate around biofuels - indirect land use change (ILUC). The debate is focused on whether or not the carbon intensity of fuels like ethanol can or should include a penalty for theoretical indirect, economic effects. Land use is just one of many indirect effects that could also increase the greenhouse gas emissions of different fuels, including gasoline.
In December 2008, the European Union decided not to include an ILUC penalty against biofuels. More recently, in April 2009, the California Air Resources Board (ARB) voted for regulations that would add an "indirect land use change" penalty to biofuels as part of its Low Carbon Fuel Standard. ARB also agreed to investigate the indirect effects of other fuel types. In addition, the U.S. Environmental Protection Agency (EPA) is expected to release a proposed rule that could include an indirect land use change penalty for biofuels in determining that fuel's capacity to reduce greenhouse gas emissions compared to gasoline.
What Is ILUC Theory?
The company you keep
(March 1, 2009) - If it's even partly true that you're known by the company you keep, then the farmer-loved ethanol business got a lot less lovable Feb. 8 when Valero Energy Corp., the largest crude oil refiner in North America, announced its intent to purchase five of the choicest plants owned by mega-biofuel maker, mega-bankrupt VeraSun Energy.
Should Valero succeed in acquiring VeraSun's best ethanol plants-and there's little reason to suspect it won't-Big Oil's drooling camel will have its nose in your government-sponsored, government-protected tent.
And you know what they say about camels and tents.
In all likelihood, Valero is just Big Oil's first camel. More will follow, especially if the ethanol business continues to struggle and cash-rich, market-insulated crude refiners can buy state-of-the-art ethanol plants for dimes on the dollar.
In fact, you have to wonder what took the refiners so long to start picking up-and picking off-ethanol operations. They've had big reasons to own ethanol for years.
For example, large refiners like Valero own gas stations (Valero owns more than 5,000 retail and branded stations in North America) so it has a built-in thirst for millions of gallons of ethanol. Why buy it retail when you can make it wholesale?
Has ethanol’s boost to corn prices run its course?
(February 3, 2009) - Recent news stories have been flush with reports about developments in cellulosic ethanol and other biofuels production. Maybe these reports help provide an understanding of why Informa Economics recently forecast corn prices below $3.00 with wheat prices below $4.00 and soybeans under $7.00
(http://www.hoosieragtoday.com/wire/news/02081_informaforecast_224610.php).
Let's look at the biofuels news first and then see what implications this news has for the long-term pricing of farm grains and oilseeds.
Poet recently announced that its research center in Scotland, SD is producing cellulosic ethanol in its pilot-scale plant. The plant has the capacity to produce 20,000 gallons a year from corn cobs
(http://www.sustainablebusiness.com/index.cfm/go/news.display/id/17460).
Poet CEO Jeff Broin said, "After producing 1,000 gallons, we've already been able to validate all of what we learned in the lab and believe the process will be ready for commercialization when we start construction on Project Liberty next year."