Time to Give Thanks

Even while harvest continues across the country, Americans will sit down to give thanks this week for a bountiful and abundant food in America. The hard work of American farmers must never be forgotten as they continue to feed and fuel us and the world.

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If you can't see the video, click HERE to go to it directly.

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• It's Time to Thanks Farmers
  
• New Poll Shows Strong Support for Biofuels
  
• A-maize-ing Fact: One Bushel of Corn
  

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USDA, DOE Announce National Biofuels Action Plan

The Depart. of Agriculture (USDA) and the Dept. of Energy (DOE) have released the National Biofuels Action Plan (NBAP), an interagency plan detailing the collaborative efforts of Federal agencies to accelerate the development of a sustainable biofuels industry.

The NBAP was developed in response to President Bush’s plans to change the way America fuels its transportation fleets in the 2007 State of the Union Address. The President's "Twenty In Ten" goal calls for cutting U.S. gasoline consumption by 20 percent over the next 10 years by investing in renewable and alternative fuel sources, increasing vehicle efficiency and developing alternative fuel vehicles.

To enhance the impact of federal biofuels investments and enable attainment of the Renewable Fuel Standard (RFS), the NBAP outlines interagency actions and accelerated federally supported research efforts in seven areas including:

• Sustainability
• Feedstock Production
• Feedstock Logistics
• Conversion Science and Technology
• Distribution Infrastructure
• Blending
• Environment, Health and Safety

More information is available online:

• Fact Sheet
• Plan (pdf)

Source: Department of Energy

READ MORE

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• Find Alternative Fuel Locations
  

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Senator McCain Slams Ethanol

In a speech on the US economy given today in Independence, Missouri, Presidential candidate John McCain slammed federal support for ethanol.

And my administration will reduce the price of food by eliminating the subsidies for ethanol and agricultural goods. These subsidies inflate the price of food, not only for Americans but for people in poverty across the world, and I propose to abolish them.

In this painfully uninformed policy statement, Senator McCain ignores the repeated studies that show that ethanol demand has had limited impact on food prices. In fact, it has been the higher price of oil that has driven food cost inflation. In other studies, it's shown that the increase use of ethanol has kept gas prices down in part due to the increase in fuel supplies.

Ethanol subsidies are in place to encourage the OIL companies to invest in the technology and infrastructure to blend ethanol into our nation's fuel supply.

America needs to continue finding and funding alternative fuel solutions to improve the environment, break our dependence upon oil and provide for our economic and national security independence free from the tyranny of foreign oil

American voters, especially those who support renewable fuels and rural development, will have to weigh McCain's position on ethanol in a broader policy context of farm policy, taxes, national security, free trade, extreme environmentalism and federal fiscal responsibilities.

Ethanol enjoys wide support from both republican and democrat senators, congressmen and governors across the country. So they will be loathe to agree with any administration that seeks to turn back America's renewable energy growth.

But this much is clear: the next administration will need to support a robust rural farm economy that can both feed and fuel the country.

Source: JohnMcCain.com

READ MORE

• What's Driving Food Prices?
• New Report Shows Ethanol Lowers Gas Prices
  
• Abundant Food and Energy Through Innovation
• New Texas A&M Study Shows Higher Oil Prices are Impacting Consumer Prices
• Biofuel Myths vs Facts

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Feds Probe Food-Price Collusion

According to a recent article in the Wall Street Journal, federal prosecutors have opened separate criminal probes into possible price-fixing by major egg producers and California tomato processors.

The investigations, which have not been previously reported, add to concerns that beyond the rising cost of fuel and feed, a hidden factor may be driving food prices higher: collusion among farmers, food processors or exporters.

The article describes how the FBI is looking into allegations of price-fixing, and bribes are responsible for higher food prices. The Chicago Tribune also reported on the federal investigations and reported several specific incidents:

In Sacramento, FBI agents tapped Rahal's telephones late last year and allege to have uncovered buyers at six food companies taking payments from him. Federal investigators also raided SK Foods on April 16. Investigators say they subsequently coaxed admissions from purchasers receiving payments at Agusa Inc., Kraft Foods Inc., Safeway Inc. and Frito-Lay, which is a division of Pepsico Inc.

Kraft Foods declined comment about the investigation.

Frito-Lay spokeswoman Aurora Gonzalez said the buyer who admitted taking payments no longer works for the company.

What is most interesting is seeing the names of the major food companies from the Grocery Manufacturers Association on this probe list for lies, bribes and higher prices. While making record profits, blaming all of the cost increases on corn costs, someone wasn't watching the business back at home.

The WSJ article also discussed how the fresh egg industry through the United Egg Producers tightened domestic egg supply to increase prices.

Fresh-egg farmers acted together through a series of export shipments, organized by United Egg Producers, an industry cartel whose 250-plus members include virtually all of the nation's big egg producers. By removing a small fraction of eggs that would have been bound for U.S. sales and arranging instead for their export, United Egg helped tighten domestic supply and drive up the price of eggs across the country, according to newsletters and other documents that United Egg sent to its members.

Source: Wall Street Journal

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Good Fuels, Good Videos

We hear it every day, Americans want to be rid of foreign oil. And they know something about renewable fuels like ethanol.

But the issue has been poisoned by the scary messages spread by Big Oil and Big Food over the past year. We'll have nothing to eat; we'll have no money left if we use ethanol.

So it's good to see new adverts for the general population like the new ones that started to run this past weekend on the Sunday-morning talkshows. Two new commercials, Faces and Places, have started to appear.

Expect even more as the energy debate continues to get national attention.
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Places - TV Ad from GoodFuels on Vimeo.
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Faces - TV Ad from GoodFuels on Vimeo.
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Source: GoodFuels.org

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New GM Volt Charges Ahead with E85 Ethanol

At General Motors' 100th birthday celebration this week, the production version of the Chevrolet Volt was unveiled to the public.

The Chevrolet Volt is an Extended-Range Electric Vehicle, or E-REV that runs on electricity at all times but has an engine to extend its range.

When its lithium-ion battery is depleted, the Volt uses a gasoline/E85 ethanol powered engine that provides electricity to power its electric drive unit while simultaneously sustaining the charge of the battery.

The Chevrolet Volt plugs in and charges in about 8 hours on a standard household 120v outlet or in about 3 hours on a 240v outlet.

It is set to be released in 2010 as a 2011 model, and it will go up to 40 miles on a single charge.

Source: General Motors

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• General Motors Invests Again in Ethanol
• Biofuel Myths vs Facts

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OPEC is Not Our Friendly Neighbor

The good folks at NozzleRage are back with a new video showing the impact of foreign oil.

A kindly neighbor tells viewers about how foreign oil hurts our neighborhood and how we can support open fuel legislation.

We're pretty sure OPEC hasn't been too friendly in our neighborhood lately. We need to buy a whole lot less oil from them. High oil prices and limited competition for transportation fuels hurts us all.

Our cars should run on many alternative fuels like ethanol and not just gasoline bought from foreign, and often hostile, countries. And cleaner burning renewable fuels help build a stronger and cleaner America.

Now THAT really would make it a beautiful day in our neighborhood!

If you can't see the video, click HERE to go to it directly.

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Source: NozzleRage.com

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• NozzleRage Against OPEC
• Open Fuel Standard Act Will Open Way for Flex Fuel Vehicles
• Energy Victory Through Competition
• OPEC Blames Ethanol For Higher Oil Prices

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Gas Prices Rocket Upward on Supply Fears

Gas prices jumped nearly 19 cents on fears of shortages caused by Hurricane Ike.

The average retail gas price increased to $3.835 this week, up $1.04 from a year ago at this same time. The average price of diesel also remains high at $4.03 a gallon, up nearly $1.06 cents a gallon from a year ago.

The petroleum industry's pricing model is "Up like a rocket, down like a feather". So no one should expect to see prices come down anytime soon. Most likely, this is just a new plateau so that motorists will be happy to see such a "low price" like $3.75 gasoline.

Big Oil has us over the barrel. Even the fear of supply disruption, real or not, causes oil prices to spike. And who pays for all of these higher prices? We all do at the pump but also as these costs get passed on to food and consumer goods.

Source: Department of Energy

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• Gas Gouging Goes Wild
• When Oil Prices Rise, So Does Just About Everything Else
• US Imports Climb From Oil

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Gas Gouging Goes Wild

In the aftermath of Hurricane Ike, gas prices have risen sharply. Many suspect gas price gouging by the oil companies are the reason for the sudden prices.

In just one example shown on CNN, gas prices at one station rose to $4.99 a gallon, a jump of $1.50 in just one day.

President Bush spoke out this weekend to pledge support for keeping prices legal:

"In the meantime, the Department of Energy, the Federal Trade Commission, and I know state authorities will be monitoring gasoline prices to make sure consumers are not being gouged, make sure consumers are being treated fairly. "

The massive Hurricane Ike caused closings on oil rigs, platforms and refineries and has severely limited transportation while at the same time causing an increase in demand.

It's fairly obvious that the American motorist again is the victim of our dependence upon oil and gasoline. Whether by the whims of foreign dictators or continued storms, America needs to continue to develop alternative fuels.

Source: WhiteHouse.gov

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Ferment in the Field: Debunking the Ethanol Myths

Ethanol remains popular in the US despite recent attacks by Big Oil and Big Food.

These sustained attacks -- which will continue -- have finally begun to galvanize support among other parties to defend the production and use of ethanol.

Because too many know the truth: killing corn ethanol kills off investment in renewable fuels. And that will leave us stuck with oil.

General Motors has released an informative video on E-85 helping to dispel common misconceptions.

Source: GM Next

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• General Motors Invests Again in Ethanol
• Biofuel Myths vs Facts

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The GOP - Grand Oil Party Snubs Ethanol

It seems that while hurricane Gustav was busy shutting down oil rigs in the Gulf of Mexico, oil operatives were busy tweaking the Republican platform (pdf) to shut down ethanol as an alternative fuel in America.

While calling for alternative fuels, the platform guts current incentives to invest in the infrastructure to make alternative fuels a reality.

"We must continue to develop alternative fuels, such as biofuels, especially cellulosic ethanol, and hasten their technological advances to next-generation production"

"The U.S. government should end mandates for ethanol and let the free market work."

We know that the market system is rigged against any type of new or alternative fuel. The oil industry has enjoyed a near-stranglehold over the American economy for years.  And the ethanol incentives actually go to the oil industry to encourage them to put the blending infrastructure in place for alternative fuels, including advanced cellulosic ethanol.

Support for the Renewable Fuels Standard (RFS) remains strong on both sides of the political aisle and across America.   This platform change hasn't gone unnoticed. So it will be interesting to see how the many Republican supporters of alternative fuels take to this sneaky backroom deal.

Source: Republican 2008 Platform (pdf)

READ MORE

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• EPA Rejects Texas RFS Waiver
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Corn Gets the Gold

Or at least Olympic gold medalist.

Swimmer Michael Phelps, who won an amazing 8 gold medals at the 2008 Beijing Summer Olympics, has chosen to appear on upcoming boxes of Kellogg's Corn Flakes.

He's already taken his place in history alongside the legends, but now Michael Phelps can add one more milestone to the list. After earning eight gold medals in the 2008 Olympic Games, Michael Phelps has earned a place of honor on the front of specially-marked Kellogg's Frosted Flakes® and Kellogg's Corn Flakes® cereal boxes.

Wheaties, made by rival General Mills has usually signed champion athletes on its cereal boxes since 1934. Instead, Wheaties will go for the silver and honor gymnast Nastia Liukin and decathlete Bryan Clay. OK, so maybe this is just another example of why corn beats wheat.

One does have to wonder how much Kelloggs paid for this honor. We suspect millions of dollars in marketing and branding costs will be added to Kellogg's costs over the year. But it's fine because they can just blame corn and ethanol for the higher prices.

Despite that the cost of corn found in a box of corn flakes is under 10 cents in a box. Corn Flakes: The Breakfast of Profiteers!

Source: Kelloggs

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Gustav Goes After Gas Production in Gulf

As Hurricane Gustav builds up speed and power in the Gulf of Mexico, oil companies are busy evacuating employees from rigs and production platforms. So far 6 production platforms and 17 rigs have been evacuated.

Gustav, now a Category One, is expected to become Category Three as it moves over the warmer waters of the gulf. It will hit the land, perhaps even another direct-hit on the city of New Orleans, on Tuesday. But in its way are rigs, platforms and refineries that help fuel our oil-obsessed nation.

And Tropical Storm Hanna is waiting in the wings for its turn to batter the oil industry too,

Hurricanes Katrina and Rita wiped about 100 rigs when they hit the oil industry. And more refineries were damaged and closed leading to reduced supply and higher prices for gasoline.

As gas and oil supplies are again disrupted by weather during this busy storm season, American motorists may again feel even more pain at the pump. Besides our own domestic production, adverse weather limits shipping, driving up the costs of oil and many other products.

Moving towards a broader energy source which includes renewable fuels only makes sense. Why should we put all of our eggs (and money, and national security) in one basket beholden to unpredictable weather and foreign leaders?

Source: Minerals Management Services, NOAA

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• Oil Prices Expected to Ripple Through Economy
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Renewable Fuels Are a Success for the U.S.

The USDA secretary, Ed Schafer, responded to the recent decision by the EPA to deny Texas' request for a waiver from the Renewable Fuel Standard (RFS).

Writing in a letter to the editors of the Wall Street Journal, the secretary shared his views that renewable fuels are a success:

"Renewable energy is a tremendous American success story. We are the world leader in biofuels. Since 2000, U.S. ethanol production has quadrupled. Biodiesel production soared from two million gallons to 450 million last year. Cellulosic ethanol, which will derive fuel from non-food feedstocks, is moving into production.

Last year biofuels trimmed U.S. greenhouse-gas emissions by more than 13 million tons and are already reducing U.S. gasoline prices by 20 cents to 35 cents per gallon. In fact, in 2007, consumers in Texas saved between $2.5 billion and $4.5 billion at the pump thanks to ethanol. Next generation technologies hold even greater potential to expand these multiple benefits to our country.

Yes, there are ripple effects, but the sharp rise in global grain prices in recent years is driven primarily by soaring energy costs, improved diets in rapidly developing nations, two years of bad weather in some countries, and new export restrictions in several nations. U.S. biofuels production contributed only an estimated 0.2%-0.6% to the 5.1% rise in U.S. consumer food costs.

Biofuels are just part of the story, and we are rising to the challenge."

Since the EPA announced its decision, harvest reports predict a record crop and corn price have fallen from highs pushed up earlier in the year by speculation.

Source: Wall Street Journal / Google News

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• DOE Supports Biofuel Development
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• Biofuel Myths vs Facts

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Food vs Rats: We Can Have Both!

Seems the lowly rat may be a blessing and a curse to world food supplies. We don't have to choose between them, we can have both!

Several news stories caught our attention this past week over the world food "crisis" that was widely hyped earlier this year.

But in an update on food in India, Bloomberg news now reports:

“Aug. 20 (Bloomberg) -- A worldwide food crisis that sent prices of wheat, rice and corn to records and sparked riots from Haiti to Ivory Coast may be over after farmers boosted plantings, a top official in India's food ministry said.” - Bloomberg

But we recall just a few months ago that India's food supply is routinely devastated by rats. Some news accounts reported that 50% of India's food supply was eaten by rats every year. Or in this case, the entire crop:

"About a million people in India's northeastern state of Mizoram are facing famine after a plague of rats ate the region's entire paddy crop, officials and aid agencies said on Monday." - Reuters

So we were bit amused when we recently saw this news update on how some Indians are solving their food crisis with the addition of the rat to the menu:

With food prices rising, one of India's poorest states is considering adding rat meat to the menus of state-run canteens, a move officials in Bihar say could help provide cheap protein for the state's 80 million people, most of whom live off the land as poor sharecroppers or subsistence farmers. - CNN

The world food production, supply and demand is a complex issue. Poverty, transportation, wars and political instability are the major factors for food shortages around the world.

And with pests eating major portions of a nation's food supply, it's hard to imagine how critics continue to argue that productivity of the American farmer to produce more food causes world starvation.

So all we can really say is "Let them Eat Rats!".

READ MORE

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• Low Corn Prices Causing World Starvation
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Sweet Potato Ethanol. Sweet!

In experiments conducted by the USDA's Agricultural Research Service (ARS), sweet potatoes grown in Maryland and Alabama yielded two to three times as much carbohydrate for fuel ethanol production as field corn grown in those states.

The sweet potato carbohydrate yields approached the lower limits of those produced by sugarcane, the highest-yielding ethanol crop.

For the sweet potatoes, carbohydrate production was 4,692 tons an acre in Alabama and 6,353 tons an acre in Maryland.

The disadvantages to sweet potato are higher start-up costs, particularly because of increased labor at planting and harvesting times. Further studies are needed to get data on inputs of fertilizer, water, pesticides and estimates of energy efficiency.

Overall, the data indicate it would be worthwhile to start pilot programs to study growing cassava and sweet potato for ethanol, especially on marginal lands.

Source: USDA

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Pennsylvania Governor Rendell Highlights Renewable Energy

Pennsylvania Governor Edward G. Rendell said the state's agricultural industry is struggling with high fuel costs, underscoring the need to secure the state's energy independence.

Nearly 900 guests gathered to hear the Governor's message at the Government & Industry Day Luncheon at Ag Progress Days, Pennsylvania's largest outdoor agricultural exposition.

"As the state's largest industry, agriculture contributes greatly to Pennsylvania's economic success and way of life," said Governor Rendell. "I applaud the continued role our agricultural industry is playing in helping to secure our state's energy independence through encouraging homegrown technology to take root."

In July, the Governor signed H.B. 1202 and Special Session S.B. 22 into law to replace 1 billion gallons of transportation fuel used in Pennsylvania with domestically produced renewable fuels. The laws will help spur the development of homegrown biofuels in Pennsylvania and reduce the state's dependence on foreign fuels by establishing new requirements that every gallon of gasoline and diesel fuel contain a percentage of cellulosic ethanol and biodiesel.

"With high fuel costs, farmers are adjusting, compromising and changing to keep their operations afloat," said Governor Rendell.

Source: Pennsylvania Governors Office

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Senator Grassley Responds to Latest Attack on Domestic Ethanol

US Senator Chuck Grassley (IA) sent a letter (pdf) this week to United States Trade Representative Susan Schwab to reassure her that the ethanol import tariff is explicitly permitted under World Trade Organization rules.

“Besides the fact that the ethanol tariff is perfectly in line with WTO obligations, it is also in line with our domestic energy policy which focuses on using homegrown ethanol to help rural communities across the country rather than sending more dollars to the Middle East or Brazil,” Grassley said.

“Brazil has yet to even take advantage of exporting ethanol duty-free to the United States through the Caribbean Basin Initiative. Until Brazil takes full advantage of its ability to export ethanol duty-free, I don’t see why we should give Brazilian ethanol more generous treatment.”

The letter was in response to questions raised by Senator Dianne Feinstein to Schwab about whether the import tariff violates the rules of the World Trade Organization.

Brazil has the opportunity to ship ethanol to the United States duty-free through the Caribbean Basin Initiative. Up to 7 percent of the United States ethanol market can enter duty-free, however this cap has not once been filled since it first became available in 1990.

But most importantly, the tarrif remains in place to offset the blenders credit for ethanol. Just why would we want to subsidize Brazil's ethanol industry?

Source: Senator Charles Grassley

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• US Imports Climb from Oil
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Senators Discuss Food and Fuel in Nebraska

U.S. Senators Ben Nelson (NE) and Tom Harkin (IA) brought the Senate Agriculture Committee to the University of Nebraska, Omaha to get to the heart of the food vs. fuel debate this week.

The hearing titled, "Food, Feed, and Fuel Production: Today and Tomorrow" was hosted by the university and included experts in agriculture, agricultural economics, food production, livestock production and renewable energy.

Witnesses at the hearing came from both sides of the ethanol debate, including poultry and livestock producers who argued that ethanol production was driving up their feed costs.

But Senator Nelson's comments may have been the best summary of the "food and fuel" issue:

"The focus here should be on the big picture: ethanol is the only domestically-produced alternative to oil-based transportation fuels. It is helping us in a big way to stretch the gasoline supply, save American consumers money at the pump, create jobs in rural communities, improve our rural and national economy—and to top it off—help wean us off imported oil.

"Ethanol is a major contributor to the U.S. gasoline supply. One study says it's the third largest, behind only Canada and Saudi Arabia, and ahead of Iraq and other OPEC countries. Today’s corn-based ethanol is paving the way for the next generation of biofuels produced from such materials as switchgrass and stover.

Tim Recker, president of the Iowa Corn Growers Association, testified (pdf) on behalf of his organization as well as the National Corn Growers Association, the Nebraska Corn Growers Association and the Nebraska Corn Board.

“The world is hungry for both protein and petroleum, and the American corn grower can help satisfy both in the form of energy from ethanol and protein from corn-fed red meat and poultry.”

Other witnesses included Dr. Bruce Babcock, Director, Center for Agriculture and Rural Development, Iowa State University; Dean Oestreich, Chairman of Pioneer Hi-Bred and Vice-President DuPont Agriculture and Nutrition; Dr. Thomas Foust, Biofuels Technology Manager with the National Renewable Energy Laboratory; and Jeff Lautt, Executive Vice President of Corporate Relations with POET.

Source: Senator Ben Nelson, Senate Agriculture Committee

READ MORE

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Sorghum's Biofuel Potential Explored at Workshop

Sorghum's potential as a biofuel crop will be explored at the International Workshop on Sorghum for Biofuels which begins today in Houston, Texas.

More than 100 international experts from government, academia, the private sector and the agricultural community are expected to participate in the conference.

U.S. co-sponsors of the event include the U.S. Department of Agriculture (USDA), Texas A&M University, and the National Sorghum Producers.

Other co-sponsors include Brazil’s Empresa Brasileira de Pesquisa Agropecuaria, the International Crops Research Institute for the Semi-Arid Tropics, and Tsinghua University, which is located in the Peoples’ Republic of China.

“U.S. consumers know that we need to develop new sources of energy to meet our transportation needs,” said USDA REE Under Secretary Gale A. Buchanan. “Growing sorghum for bioenergy production can give us a source of renewable—and profitable—energy right here at home.”

Sorghum is attracting greater interest as a bioenergy crop because it is tolerant of drought and grows well on marginal lands not suitable for most other crops. It produces high yields even after an abbreviated production cycle, and requires minimal amounts of fertilizer and irrigation.

Source: USDA

READ MORE

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• Melons to Ethanol?
  
• First Generation Biofuels Crucial to Second Generation
• Corn Cobs Harvested for Ethanol

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Corn Cob Ethanol Pilot Plant Complete This Year

POET announced last week that its cellulosic ethanol pilot facility will be operational this year.

We previously wrote about the effort to harvest corn cobs for ethanol during last year's corn harvest.

At the American Coalition for Ethanol conference, POET announced that construction will be completed on a $4 million pilot-scale cellulosic ethanol production facility later this year. The pilot plant will be adjacent to POET’s corn ethanol pilot facility and a nine million gallon per year ethanol production facility in Scotland, S.D. It will allow POET to build upon recent technology advances before starting construction on Project LIBERTY, their commercial cellulosic production facility, next year.

"Our expanded research effort has led to several significant strides in the development of cellulosic ethanol technology at the lab scale in recent months," said Jeff Broin, CEO of POET. "Construction of this pilot facility will allow our company to take the next step toward the commercialization of cellulosic ethanol."

During the 2007 harvest, POET worked with major agricultural equipment manufacturers to harvest 4,000 acres of corn grain and cobs from a farmer’s field in Southeastern South Dakota. Cobs from this fall’s harvest and last will serve as the feedstock for the cellulosic pilot plant, along with corn fiber extracted from the adjacent corn ethanol production facility.

POET has been working on cellulosic ethanol technology for more than eight years and has significantly expanded their research and development efforts. The company recently completed an expansion of their research lab in Sioux Falls, S.D. that tripled its size.

Additional information on POET's ethanol efforts can be found on its blog, RhapsodyinGreen.

Source: POET

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• Corn Cobs Harvested for Ethanol
• First Generation Biofuels Crucial to Second Generation
• Ethanol Plants Recognized for Energy Savings
  
• Biofuel Plant Locations

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