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April 2004 Biobased Fuels, Power and Products Newsletter
 
Contents:
Feature Article: Can I Use an Ethanol Blend?
Biomass Spotlight: Montana
On the Hill
Grassroots
Market Place
Events
Solicitations
R&D Awards
 

Feature Article

Can I Use an Ethanol Blend?

As you pull into your local gasoline station to refill your tank, you notice that, along with the regular three grades of gasoline, the station offers an ethanol blend. You recall hearing about the benefits of ethanol, such as how it helps the environment, improves rural economies, and reduces U.S. dependence on foreign oil imports. However, you still decide not to use the ethanol blend. Why not? Because you're not sure if your car can safely burn an ethanol blend and you do not want to risk paying for car repairs if it cannot.

The following information may help you determine if you can use ethanol blends in your car the next time you fill up at the pump. Today, two main blends of ethanol are sold - 85 percent of ethanol blended with gasoline and 10 percent ethanol blended with gasoline, referred to as E85 and E10, respectively. In 2002, 99 percent of fuel ethanol consumed was E10, with the rest E85 blends.

E85 - Although E85 is a small percentage of the total, the future of E85 fuels is bright. In fact, the level of E85 consumption in the United States has increased from just under 700 million gallons consumed 1996 to over 10 billion gallons consumed in 2002.1 The major "driver" of the increase in E85 consumption is the growing number of flexible fueled vehicles (FFVs) on the road. Since 1996, Chrysler, Ford, and General Motors have manufactured and sold over 1.6 million FFVs nationwide that are capable of operating on E85 fuel or conventional gasoline. 2 Only FFVs can use E85, but they are not difficult to find. They include models such as the Ford Taurus, Dodge Caravan, and Chevy Silverado. A comprehensive list of FFVs can be found in the 2004 Purchasing Guide for Flexible-Fuel Vehicles . Additionally, Clean Cities offers a buyers guide for these vehicles.

Once you know if you have a car compatible with E85, the next step is to find the nearest station that sells it. Currently, there are only about 180 gas stations in the U.S. offering E85, mostly in the Midwest.3 The Alternative Fuels Data Center provides an up-to-date list of stations, as well as maps and directions to these stations, at their Alternative Fuel Station Map Site . In Canada, the Canadian Renewable Fuels Association provides a list of the ethanol retailers in each of the provinces at their Directory of Ethanol Retailers.

E10 - If you do not own a FFV, E10 gasoline may still be used in your vehicle. The use of E10 is covered under warranty by automakers selling cars in the U.S., including DaimlerChrysler, BMW, Ford, General Motors, and Honda.4 Visit the Renewable Fuels Association (RFA) Website to find a comprehensive list of which Automaker Fuel Recommendations include E10.

One of the most common misconceptions regarding ethanol use is that it plugs fuel filters. On the contrary, ethanol has detergent properties which make it a valuable cleaning agent to help prevent fuel filters from plugging.5 If your mechanic is uncertain about using ethanol in your specific vehicle, they should consult the Changes in Gasoline Manual: The Auto Technician's Gasoline Quality Guide .

Ethanol-blended fuels can also be used in your yard care equipment, snowmobiles, ATVs, or boats. Lawnmowers, chainsaws, weed trimmers, and blower vacs have all been tested with ethanol fuels and have shown no engine failures, no unscheduled maintenance, and good performance. The RFA website 2003 Power Equipment Fuel Recommendations shows that E10 can be used as a fuel for these products.

For example, the Montana Department of Environmental Quality has persuaded snowmobile rental agencies in West Yellowstone to try ethanol blended fuels and alternative oil products. Since all rental businesses have started using these products exclusively, the result has been a reduction in air pollution in the park.6 Although, snowmobile manufacturers approve the use of ethanol in their products, they also recommend changing to a larger main carburetor jet size when operating on an oxygenated fuel. Additionally, watercraft manufacturers Honda, Kawasaki, Mercury Marine, OMC (Johnson/Evinrude), Pleasurecraft, Tigershark (Artco), Tracker and Yamaha allow the use of oxygenated fuels in their products under certain restrictions.7

Remember that the use of ethanol-blended fuels is not just for a specially designed "car of the future." Today, all cars, trucks, snowmobiles, boats, ATVs, lawnmowers, weed trimmers, and other equipment can use E10 as a fuel. Although you need a FFV to use E85, these vehicles include some of most popular models being sold today. As a consumer, you can have a direct effect on decreasing U.S. dependence on foreign imports of oil, improving the environment, and supporting rural economic growth.

1Brent D Yacobucci and Jasper Womach. "Fuel Ethanol: Background and Public Policy Issues"http://www.ncseonline.org/nle/crsreports/03Sep/RL30369.pdf
2http://www.cleanairwisconsin.org/publications/ethanol.pdf
3http://www.afdc.doe.gov/refuel/state_tot.shtml
4EPA Alternative Fuel Fact Sheets Ethanolhttp://www.epa.gov/otaq/consumer/fuels/altfuels/ethanol.pdf
5http://www.ethanol.org/pdf/Ethanol%20Brochure.pdf
6Jerome A. Morris, Gary A. Bishop, and Donald H. Stedman."Real-time Remote Sensing of Snowmobiles Emissions at Yellowstone National Park: An Oxygenated Fuel Study, 1999" http://www.westbioenergy.org/snow/#Topic_6
7http://www.ethanolrfa.org/2003marine.pdf

Clarification: The September 2003 feature article described hydrogen-related research needs outlined in the Technical Advisory Committee's Roadmap. While the Committee's Roadmap does outline research needs related to converting biomass resources to hydrogen, and other investigations surrounding hydrogen energy, the September feature article did not accurately reflect the Committee's position or support related to this topic. In fact, the Committee has yet to reach a position on the potential of hydrogen production from biomass and will review the subject further during 2004.


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Biomass Spotlight: Montana

In 2000, the state of Montana consumed 594 trillion Btus of energy. Coal and petroleum accounted for 33 and 32 percent of the total consumption, respectively. Hydroelectric provided 19 percent and natural gas provided 13 percent of the total consumption. In Montana, biomass supplied over 3 percent of the total consumption, or over 16 trillion Btus.1

Currently, Montana uses 17.5 million gallons of ethanol blend annually and has two E85 fueling stations.2,3 Since 1997, staff at Yellowstone National Park have operated the park's fleet of 100 snowmobiles with E10 and bio-based lube oil. In fact, the park's entire fleet of gasoline-powered vehicles are required to use E10.4 In 1995, Yellowstone also was the site of a pilot project on the use of biodiesel in its fleet. As a result of the successful Truck in the Park project, the use of biodiesel in national parks was expanded through the Green Energy Parks Program. Presently 20 national parks are using biodiesel or biodiesel blends.5 In October 2002, Glacier National Park started testing the use of biodiesel in its fleet and, in June 2003, its entire fleet switched over to B20.6

Montana offers a number of incentives to encourage the use of biomass. The Alternative Energy Revolving Loan Program (AERLP) provides loans to individuals and small businesses for the purpose of building alternative energy systems, including biomass, for residences and small businesses to generate energy for their own use and for net metering. The state also offers a 35 percent tax credit for individuals or businesses that invest $5,000 or more in a commercial system or net metering system that generates energy by means of an alternative renewable energy source, such as biomass. 7

1Energy Information Administration. "Table 7. Energy Consumption Estimates by Source, Selected Years, 1960-2000, Montana." www.eia.doe.gov
2http://www.deq.state.mt.us/energy/bioenergy/FuelEthanolProjects.asp
3Alternative Fuels Data Center, http://www.afdc.doe.gov/refueling.html
4http://www.nps.gov/transportation/alt/documents/altfuels.pdf
5http://www.nps.gov/renew/npsbiodiesel.htm
6http://www.matr.net/article-7202.html
7http://www.dsireusa.org/library/includes/map.cfm?State=MT&CurrentPageId=1

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On the Hill

Congress is considering a number of bills that affect the use of biomass resources to produce energy and biobased products. For more information, visit thomas.loc.gov
Bill # Sponsor Summary Last Action
S. 1449 Sen. Michael D. Crapo
(Republican - ID)
T: (202) 224-6142
A bill to improve the capacity of the Secretary of Agriculture and the Secretary of the Interior to prepare and conduct hazardous fuels reduction projects on National Forest System land and Bureau of Land Management land that are aimed at protecting communities, watersheds, and certain other at-risk land from catastrophic wildfire, to enhance efforts to protect watersheds and address threats to forest and rangeland health on public and private land, including catastrophic wildfire, to increase research on forest health and forest-damaging agents, and for other purposes.
12/03/2003: Related to H.R. 1904 known as the Healthy Forest Restoration Act, which became Public Law No: 108-148 on 12/03/2003.
H.R. 6 Rep. W. J. Tauzin
(Republican - LA)
T: (202) 225-4031
To enhance energy conservation and research and development, to provide for security and diversity in the energy supply for the American people, and for other purposes.
11/21/2003: Last minute negotiations have failed to secure the 60 votes needed to bring the bill to a vote in the Senate. Congressional leaders announced they would postpone further action on the energy bill until next year.
S. 139 Sen. Joseph Lieberman
(Democrat - CT)
T: (202) 224-4041
A bill to provide for a program of scientific research on abrupt climate change, to accelerate the reduction of greenhouse gas emissions in the United States by establishing a market-driven system of greenhouse gas tradeable allowances that could be used interchangably with passenger vehicle fuel economy standard credits, to limit greenhouse gas emissions in the United States and reduce dependence upon foreign oil, and ensure benefits to consumers from the trading in such allowances.
10/30/2003: Referred to Senate Committee on Environment and Public Works.
H.R. 3336 Rep. Paul E. Gillmor
(Republican - OH)
T: (202) 225-6405
To clarify congressional approval of certain state energy production tax practices.
10/27/2003:
Referred to the Subcommittee on Commerce, Trade and Consumer Protection
H.R. 3903 Rep. Charles F. Bass
(Republican - NH)
T: (202) 225-5206
To amend the Clean Air Act to establish a national uniform multiple air pollutant regulatory program for the electric generating sector.
10/6/2003:
Referred to the Subcommittee on Energy and Air Quality.
H.R. 130 Rep. Marcy Kaptur
(Democrat - OH)
T: (202) 225-4146
To provide for a Biofuels Feedstocks Energy Reserve, and to authorize the Secretary of Agriculture to make and guarantee loans for the production, distribution, development, and storage of biofuels.
10/1/2003:
Introductory remarks made on the measure.

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Grassroots

Toyota Sees $38 Billion Sales Potential in Bioplastics
Toyota Motor Corp. the world's No. 2 auto maker, expects its production of biodegradable plastics to grow into a four trillion yen ($38 billion) business by 2020 when the company hopes to control two-thirds of the world's supply. "[The biotechnology arm] could really explode as a business, and may have the biggest growth potential out of all of our operations," Kozaburo Tsukishima, general manager of Toyota's biotechnology division, said. Toyota began using bioplastics in some new cars last year, including the Raum and Prius models, but also supplies the material to Japanese cosmetics maker Shiseido Co. and other companies.
http://www.forbes.com/home_asia/newswire/2004/03/30/rtr1316387.html

Plant to Offer Recycling Option for Used Cooking Oil
Construction has begun on a £15 million ($27 million) biodiesel plant, which will provide a new outlet for millions of liters of waste oils and fats in Scotland. When it opens in Spring 2005, the plant will take in used cooking oils from the catering industry and will also be able to convert animal fats. The plant will become particularly important as new controls on the use of waste cooking oil in making animal feeds come into effect in 2005. The plant is expected to produce 50 million litres (13 million gallons) of biodiesel a year.
http://www.onyxgroup.co.uk/pages/newsIndustryDirect.asp?articleId=1123

Lycopene Factory from Corn "Leftovers"
Lycopene, the pigment that makes tomatoes red, is gaining in popularity as a nutraceutical as new science uncovers the potential health benefits locked into this powerful antioxidant. Lycopene is thought to reduce risk of prostate cancer and fight heart disease. Through a the modified fungus, the ARS National Center for Agricultural Utilization Research in Illinois sees a potential way to mass-produce lycopene from ethanol co-products like corn fiber rather than extract and purify the carotenoid from tomatoes, making it a far cheaper alternative.
http://www.foodnavigator.com/news/news-NG.asp?id=51039

Macadamia Plant to Burn Shells as Biomass Fuel
The Mauna Loa Macadamia Nut Corp. processing factory in Kea'au, Hawaii will add a new power plant next year to burn macadamia nut shells as a biomass fuel to produce electricity, company executives announced yesterday. The new plant will cost $12 million to $15 million to build, and will produce up to 1.2 megawatts of electricity. That will be enough power to run the macadamia nut processing and packaging plant, saving the company up to $700,000 a year in electricity costs.
http://the.honoluluadvertiser.com/article/2004/Mar/18/ln/ln31a.html


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Market Place

Data Sources:
OxyFuel News: Ethanol
(U.S. Avg: Terminal); MTBE (Houston, TX: spot); Gasoline (Gulf Coast: spot, regular grade)
USDA-National Agricultural Statistics Service, "Agricultural Prices," "Grain Stocks"


Grain Prices Mar 2003 Mar 2004 % Change
Corn Prices
($/bushel)
2.38 2.79 17%
Soybean Prices ($/bushel) 6.07 9.56 57%
Fuel Supply Mar 2003 Mar 2004 % Change
Motor Gasoline Production ('000 b/d) 8,642 8,890 2.87%
Motor Gasoline Imports
('000 b/d)
914 970 6.13%
*Motor Gasoline Stock
(Mil. bbl)
146 138 -5.48%
Refinery Utilization Rate 89 88 -1.12%
Oxygenate Production Jan 2003 Jan 2004 % Change
Ethanol Production
('000 b/d)
169 211 24.85%
MTBE Production
('000 b/d)
167 107 -35.93%

Data Sources:
U.S. DOE-Energy Information Administration, "Weekly Petroleum Status Report", "Monthly Oxygenate Report"
USDA-National Agricultural Statistics Service, "Agricultural Prices," "Grain Stocks"


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Events
April 2, 2004
Various locations in the U.S.
National AFV Day Odyssey
http://www.nationalafvdayodyssey.org
April 13-15, 2004
Washington, D.C.
Earth Technologies Forum
http://www.earthforum.com
May 2-5, 2004
Fort Lauderdale, FL
10th National Clean Cities Conference and Expo
http:// www.ccities.doe.gov
May 9-12, 2004
Chattanooga, TN
26th Symposium on Biotechnology for Fuels and Chemicals
http:// www.ct.ornl.gov/symposium
May 10-14, 2004
Rome, Italy
2nd World Conference and Technology Exhibition on Biomass for Energy, Industry and Climate Protection
http://www.conference-biomass.com/
May 17-19, 2004
Saskatoon, Canada
Bio-Logical Futures II
http://www.bio-science.sk.ca/
June 2-4, 2004
Jonkoping, Sweden
World Bioenergy 2004
http://www.elmia.se/worldbioenergy/
June 7-9, 2004
Indianapolis, IN
4th Corn Utilization & Technology Conference sponsored jointly by the National Corn Growers Association and the Corn Refiners Association
http://www.corntechconf.org/
June 13-15, 2004
Helena, MT
14th Annual EPAC Ethanol Conference "Energy, Parks and Clean Cities: Gemstones In the Treasure State"
http://www.ethanolmt.org
June 22-25, 2004
Madison, WI
20th Annual International Fuel Ethanol Workshop & Tradeshow
http:// www.bbiethanol.com
June 24-25, 2004
Arlington, VA
Agriculture as a Producer and Consumer of Energy
http://www.farmfoundation.org
June 27-30, 2004
Washington, DC
Future Car Congress
http://www.futurecarcongress.org
August 10-12, 2004
Duluth, MN
ACE Annual Meeting & Ethanol Conference
http://www.ethanol.org/conference.htm
August 28 - September 3, 2004
Denver, CO
World Renewable Energy Congress
http://www.nrel.gov/wrec/
October 11-13, 2004
Chicago, IL
Industrial Applications of Renewable Resources: A Conference on Sustainable Technologies
http://www.aocs.org/meetings/iafo
Click here for additional bio-related events.

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Solicitations

Title: Continuing Solicitation for the Office of Science
Description: Seeking grant applications for support of basic energy science fundamental research in the natural sciences and engineering, leading to new and improved energy technologies and to understanding and mitigating the environmental impacts of energy technologies.
Government Agency: Department of Energy's Office of Science
Schedule: Applications may be submitted at any time.
URL: www.science.doe.gov

Title: National Research Initiative (NRI) Competitive Grants Program
Description: The USDA Cooperative State Research, Education, and Extension Service requests proposals for the National Research Initiative (NRI) Competitive Grants Program. The purpose of the NRI Program is to support research, extension, and education grants that address key problems of national, regional, and multi-state importance in sustaining all components of agriculture (farming, ranching, forestry including urban and agroforestry, aquaculture, rural communities, human nutrition, processing, etc.). Over 30 areas of interest have been identified, including but not limited to: Biobased products and bioenergy, managed ecosystems, watershed processes & water resources, rural development, and air quality.
Government Agency: USDA
Schedule: Responses due 1/9/04 to 6/15/04, depending on area of interest.
URL: www.fedgrants.gov

Title: Biofuel Infrastructure Funding Available
Description: Biofuel Infrastructure Project Grants are available to private corporations; schools, colleges, and universities; state, local and other units of governments; and agriculture cooperatives to plan, implement and evaluate a biofuel infrastructure project. Biofuel is defined as either E85 (85 percent ethanol and 15 percent gasoline) or biodiesel (minimum 20 percent blend). All projects must be based in Michigan.The maximum grant award will be $24,500. For further information, contact Kelly Launder at 517/241-6223 or klaund@michigan.gov.
Sponsor: Michigan
Schedule: Proposals are due April 14, 2004
URL:

Title: Inventions and Innovation
Description: Inventions & Innovation (I&I), within DOE’s Weatherization & Intergovernmental Program, offers financial, technical, and commercialization support to inventors and businesses for promising energy-saving concepts and technologies. I&I selects grantees through a competitive solicitation process and provides financial assistance at three levels: up to $50,000 for technologies in early-stage development, up to $250,000 for technologies approaching the point of prototype, and up to $500,000 for production-scale technology demonstrations.
Government Agency: Department of Energy
Schedule: Pre-Proposals due April 5, 2004
URL: e-center.doe.gov

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R&D Awards

There are no awards for this month.

National Biomass Initiative
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