Should Ethanol Subsidies be Renewed?
Jeff Coombe The Ethanol industry has only responded tepidly to the Volumetric Ethanol Excise Tax Credit in the past, so why should it be renewed? The U.S. ethanol industry is nearing a major deadline. The industry's primary subsidy mechanism, the Volumetric Ethanol Excise Tax Credit (VEETC), is set to expire on December 31, 2010. Federal ethanol subsidies were worth roughly $5 billion in 2009, a figure large enough to create vigorous debate over their renewal. Some call the credits a boondoggle, others a vitally important lifeline for an industry still in its formative years. ...
Fulcrum Bioenergy’s $115M IPO: The 10-Minute Version
Jim Lane The first zero-cost feedstock biofuels company comes to the public markets with its IPO. Like to see how this “Back the the Futuresque” technology unlocks value by converting household garbage into transportation fuel? Here’s our 10-minute version of the IPO from Fulcrum Bioenergy. In California, Fulcrum Bioenergy has filed an S-1 registration statement for a proposed $115 million initial public offering. The number of shares to be offered and the price range for the offering have not yet been determined. The company proposes to list under the symbol FLCM. UBS Investment Bank...
Xethanol to Acquire Plant in Georgia
Xethanol Corporation (XTHN.OB) announced that its CoastalXethanol subsidiary has signed a letter of intent with Pfizer, Inc. to purchase Pfizer's pharmaceutical manufacturing complex located in Augusta, Georgia. While details are yet to be finalized, CoastalXethanol and Pfizer are working together to complete the transaction. The state of the art, 40 acre site includes: an 89,100 square foot manufacturing facility, a 25,000 square foot warehouse facility, 7,300 square feet of laboratory space, and 16,000 square feet of offices and conference rooms. CoastalXethanol intends to retrofit the site to produce 35 million gallons per year of ethanol. The facility will...
Veridium Receives Order to Increase Ethanol Production Efficiencies
Veridium Corp. (VRDM.OB) announced its receipt of an order from a Wisconsin based ethanol producer for the second stage of Veridium's patent-pending Corn Oil Extraction Systems(TM). Veridium's proprietary new Corn Oil Extraction Systems(TM) extract high grade corn oil from an ethanol by-product called distillers dried grain ("DDG"). Currently, the majority of ethanol production is based on a dry milling technique that utilizes more than 1 billion bushels of corn to produce 3 billion gallons per year of ethanol. The dry mill process converts the starch from the kernel of corn into sugar and then the sugar into ethanol....
Enzyme Breakthroughs From The Majors
by Jim Lane
Three big product announcements just in…
DSM (e) breaks through on yield, efficiency with new yeast, enzyme offerings for corn fiber conversion.
Novozymes (Copenhagen:NZYM-B; OTC:NVZMY) launches breakthrough techs “Fortiva” and “Innova Force”.
DuPont (DD) extends with corn oil extraction tech.
In Indiana, DSM leads the news out of the Fuel Ethanol Workshops with their latest yeast and enzyme offerings, eBOOST GT and eBREAK 1000F.
Up to 60 percent GA reduction
We’ve seen the eBOOST brand over the past year — so here’s a significant cost savings opportunity in the form of a line extension. eBOOST GT, which has been tested and qualified at commercial...
Greenshift Corp: Putting the Squeeze on Corn
Debra Fiakas After a series of bankruptcies laid the U.S. ethanol industry on its back a few years ago, the survivors got the message - become economically viable or go out of business. The industry has been scrambling to adopt new processes that utilize other non-food materials or at least get more out of the corn that has been the mainstay feedstock for the U.S. ethanol industry. Enter Greenshift Corporation (GERS: OTC/BB) with its corn oil extraction process and a new step in the corn-ethanol production process. Greenshift may change the economics of corn-ethanol production by...
Report Alleges EPA Tests Skewed Against Ethanol By Oil Industry Influence
by Jim Lane
In Washington, researchers for a report published by the Urban Air Initiative contend that “technical data that shows the nation has been exposed to decades of flawed test fuels and flawed driving tests, which in turn means flawed emissions results and mileage claims”. The complete Beyond a Reasonable Doubt series from UAI is available here.
Further, EPA emails obtained under the Freedom of Information Act reveal that, according to a report from Boyden Grey & Associates, the Agency appears to have directly solicited financial contributions and technical input, “especially on the fuel matrix,” from an oil industry controlled research organization.
Of the...
What I Sold: Pacific Ethanol (NASD:PEIX)
This entry continues a series on companies I sold as part of a portfolio cleanup prompted by the mess on Wall Street. In the first entry I describe what I plan to do with the cash, and the second was about Carmanah Technologies. UQM Technologies was one I didn't sell. In May of last year, I took a look at competitive forces in the corn ethanol industry. While I was rather negative on the industry at the time, when ethanol stocks fell in the summer and fall of 2007, I called the bottom much too soon, and...
Did Trump’s EPA Cost Corn Growers $3.65 Billion In 2017?
by Jim LaneIn Washington, new evidence has appeared that a Trump Administration shift on US low carbon fuel policy may have cost US corn growers an estimated $3.65 billion.
The mechanism? A secretive effort by Administration officials installed at the US Environmental Protection Agency that destroyed an estimated 1.37 billion gallons of annual demand for low-carbon renewable fuels, in favor of fossil fuels.
Officials at the agency exploited a loophole in US low carbon fuel legislation that allows small oil refineries to gain hardship waivers in cases of severe distress from complying in full with US low carbon fuel laws. Now, evidence...
Green Plains Primes The Pump
by Debra Fiakas CFA Ethanol producer Green Plains Renewable Energy, Inc. (GPRE: Nasdaq) announced today plans to build a fuel terminal point in Beaumont, Texas. The terminal will be located at a facility owned by Green Plains’ partner in the venture, Jefferson Gulf Coast Energy Partners. It will be helpful to have a friend in the project that is expected to cost $55 million to complete just ethanol storage and throughput capacity. Planned storage capacity is equivalent to 500,000 barrels, with the potential to expand to 1.0 million barrels. Capacity to handle biofuels or other...
Baron’s Thinks Archer Daniels Stock to Rise on Ethanol Harvest
Barons profiles Archer-Daniels-Midland Co. (ADM) in the April 3rd edition. They feel that ADM shares are poised to climb further, literally fueled by its dominance of the ethanol market as investors seek alternative energy investments. Archer Daniels was believed to have secured a 50-cent per gallon increase in ethanol contract pricing to $1.85 per gallon in recent negotiations. Given ethanol price rises seen in the commodities market, Archer Daniels could reap significant further increases in its next round of talks for October contracts.
Earth to Cellulosic Ethanol: Glad You’re Here, What Took So Long?
Jim Lane Part I of II Cellulosic ethanol arrives at scale “The five years away forever” put to rest but are there troubling waters still ahead? For whom, and why? There’s a gigantic disconnect between two sections in the country as to whether the United States should be celebrating the success or the failure of cellulosic biofuels biofuels made from crop residues, energy crops, and other feedstocks including municipal solid waste, and which feature a 60 percent or greater full-lifecycle reduction of greenhouse gas emissions compared to conventional gasoline. The supporters On the one...
ADM raises capacity of N. Dakota biodiesel plant
Archer-Daniels-Midland Co. (ADM) s increasing the capacity of a biodiesel plant under construction in North Dakota to 85 million gallons a year, a company spokesman said on Wednesday. ADM originally announced the plant in Velva would produce 50 million gallons of biodiesel a year using canola oil. ADM decided to increase capacity to take advantage of economies of scale, said Greg Webb, vice president of public affairs.
Aemetis’ Cellulosic Ethanol From Orchard Waste Project
by Jim Lane
There were more than 100 presentations at ABLC last week and not a clunker amongst them, but if I were to point the reader’s attention at one or two that stood out from the rest because of the short-term or long-term implications, I’d start with the news from Aemetis (AMTX) that they are embarking now on a $158 million cellulosic ethanol plant — to be built in Riverbank, California, in partnership with LanzaTech.
Cellulosic ethanol is selling for such a high price in California right now — the value jumps north of $4.00 per gallon at times —...
REX American: Culturally Frugal
by Debra Fiakas CFA Among the surviving public ethanol producers in the U.S. is REX American Resources (REX: NYSE). Based in Ohio, REX American is an ethanol fuel producer with owned nameplate capacity near 215 million gallons per year. Additionally, the company distributes by-products of the ethanol production process, including distiller grains and non-food grade corn oil. REX has full or partial ownership in six ethanol production plants located in the Ohio, South Dakota, Illinois and Minnesota. The company relies on corn feed stock for its dry milling ethanol production process. Like any other ethanol...
Renewable Fuels’ Dunkirk
by Jim Lane
It’s been a very busy week in Washington DC, the high point being a letter to seven senators sent late Thursday by EPA Administrator Scott Pruitt, who took significant (and as of a few days ago, unexpected) steps toward strengthening the foundation for ethanol and renewable fuels.
The truth? It’s a Trump Administration back-down. EPA overreached on de-clawing the Renewable Fuel Standard on behalf on some grumpy oilpatch donors (known as GODs), and the Trump Administration managed to revive a Grand Alliance around renewable fuels — one that now includes almost 40 members of the United States Senate,...
