Food and Fuel America.com: January 2008

Thursday, January 31, 2008

January 2008 Articles - Food and Fuel America.com

January 2008
Food and Fuel America
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Be sure to check out these articles which appeared during the month of January 2008 on Food and Fuel America.com:

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Beef Prices Expected to Fall

According to the USDA, beef prices are expected to fall in 2008.

In this audio report (mp3), USDA economist Joel Greene explains that beef costs will drop for several factors. These include a good supply of beef and other meats and possible decline in consumer spending due to economic uncertainty.

This report offers a good point that beef and meat prices are most affected by supply and demand issues---not input costs like feed grains. And consumer prices are most impacted by energy, labor and marketing costs often at the closest point of the retail sale.

Source: USDA

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Wednesday, January 30, 2008

President Bush's State of the Union: Reduce Our Dependence on Oil!

President Bush State of the Union Renewable Fuels Ethanol Food vs Fuel

President Bush made special note of Renewable Fuels in his 7th and final State of the Union Address this week:

To build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology.

Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil consumption over the next decade, and you responded.

In less than one year, the President's challenge was met with the passage and signing of the historic Energy Bill.

Source: WhiteHouse.gov

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Tuesday, January 29, 2008

Fuel the Change with New Ethanol Video Contest

Budding Steven Spielbergs can show off their work in a new ethanol video contest promotion.

Fuel the Change is a new site that allows would-be George Lucas' to create and upload videos that shows the benefits of ethanol. And the winner will earn $10,000 and a chance for the commercial to air during the Indy 500.

From the site:

Grab a camera and an idea. Tell us in less than 30 seconds how ethanol is a part of your life and how you're fueling American independence and a greener, cleaner future one tank at a time. We'll even provide you with a loaded toolbox to help you create your video.

You're invited to help Fuel The Change to a better environment, a better America, and a better earth. Create a 27 second video promoting the advantages of ethanol. How is ethanol a part of your life? How do you see ethanol making a difference in the environment? Or, describe your burning desire to drive Americans to use ethanol.

If you've created something original, with a powerful and effective message that promotes ethanol, you could be on your way to $10,000 and a potential airing during the coverage of one of the most watched sporting events of the year, the Indianapolis 500®!

Can't see the video, CLICK HERE to go to YouTube.

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Monday, January 28, 2008

Ed Schafer Sworn in as New Secretary of USDA

Ed Schafer USDA Vice President Dick Chaney Food vs Fuel Ethanol

Former North Dakota Governor Ed Schafer was sworn in as the new Secretary of the US Department of Agriculture (USDA) by Vice President Dick Chaney on Monday, January 28, 2008.

Schafer served as North Dakota's governor from 1992 to 2000 and made diversifying and expanding North Dakota's economy, reducing the cost of government and advancing agriculture his top priorities in office.

Before entering public life, Schafer was an executive with the Gold Seal Company in Bismarck, a successful marketer of nationally-known consumer products such as "Mr. Bubble" bubble bath, "Glass Wax" glass cleaner and "Snowy Bleach." The company had been founded by his father, Harold Schafer.

Secretary Schafer enjoys the outdoors and his hobbies include bicycling, hiking, scuba diving and restoring classic automobiles. He and his wife, Nancy, have four children; Tom Schafer, Ellie Schafer and Eric Jones and Kari Jones; and eight grandchildren.

Source: USDA

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Hot Rod Secret: E85 is a High Performance Fuel

What's the biggest secret to high-performing Hot Rod cars?

It's E85 Ethanol.

Critics of alternative fuels, especially ethanol, often attempt to portray them as inferior to fossil-fuel gasoline.

But true auto buffs, from Indy 500 racers to back-yard Hot Rodders know the real secret: E85 Ethanol is a high-performance fuel. We've covered several stories here at Food and Fuel America that discussed the performance of the fuel, including Karl Jacob's E85 Viper Speed Record, Greg Poe's Flying with Ethanol, and the Indy 500.

So it was nice to see a well known racing magazine look at the fuel too. Hot Rod magazine has an article, What You Need to Know About E85 Ethanol Alternative Fuel, that covers the high performance of E85 ethanol.

And what does Hot Rod think about ethanol?

"We get to bypass all the left-wing poppycock and right-wing folderol and focus on this issue solely as it relates to hot rodding. The bottom line here is that ethanol looks like a pretty darn good performance fuel."

The article is geared toward hot rod enthusiasts, but it covers E85 performance, technical challenges, fuel grades and even cost and availability.

Finally, it concludes with this endorsement of E85, even if it is "environmental fuel", that ethanol really performs:

While we promised we weren't going to go there, it appears that the political winds are shifting toward a permanent commitment to ethanol fuels. Funny, isn't it? Usually when environmental and social issues arise involving cars, hot rodders get to take it right in the neck. Not this time. Here the green solution may be the ideal performance solution as well.

Source: Hot Rod

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Sunday, January 27, 2008

Critics Ignoring Success of Ethanol?

(Helpful readers send us some really good stuff everyday. So thanks to Steve in LA for this real nugget.)

John McElroy, the host of Autoline Detroit has an essay at AutoBlog worth reading, The Breakthrough We've Been Waiting For?

His chief point is the anti-ethanol chorus nearly drowned out the story on General Motors' investment in Coskata. The GM partnership will drive the ethanol-from-waste technology and help to make ethanol an even more affordable fuel. John thinks the partnership deserved much more attention from the media than it received. And he also realizes he's not making friends with the ethanol critics:

I know that none of what I've written here will placate the anti-ethanol crowd. They continue to ignore Brazil's amazing success with this fuel and will do everything possible to prevent us from doing the same.

What we found most interesting was John's prediction on American's ability to change quickly in face of a real crisis:

But mark my words. If there is any kind of oil disruption, like if we start trading missiles with the Iranians in the Straits of Hormuz, there will be a stampede of Americans running to their local car dealers, banging on the doors, begging for flex-fuel vehicles that run on ethanol.

When we read about professional alarmists, with their pre-existing grudges against the world, hammering on renewable fuels, we wonder when they'll have solutions rather than press releases. Ethanol plays an important part in denting America's fuel needs.

Source: AutoBlog

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Saturday, January 26, 2008

Robbery at the Pump: Gasoline Cost Up 85 Cents

gas gasoline higher energy costs 2008 higher food costs

According to the Department of Energy, the average price of unleaded gasoline is up 85 cents from last year at this time to $3.017.

That's a lot of money leaving American consumers' pockets every time they visit the pumps.

So doing some fancy math, let's look at what this may mean. If America uses 385 million gallons of gasoline every day, a year's worth of .85 increased price equates to a staggering $119.4 Billion dollars (385M x 365 x .85) increase in gasoline costs to the American economy for a full year.

So will we see this nearly a $1 more a gallon price continue?

As the full impact of $100 and higher crude oil, lack of refinery expansion and fears of peak oil, American motorists may soon see even higher gasoline prices. And of course, the impact of higher energy costs affects consumers as prices increase for food, clothing and other consumer goods.

The "economic stimulus" package now being proposed by Congress and the Administration may help put money back into consumers' pockets. But it pales in what was taken away by the higher oil costs.

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Friday, January 25, 2008

Florida Invests in Renewable Energy

Florida announced recipients of $25 million in renewable energy grants this week. The grants are designed to spur Florida’s agriculture industry to produce 25 percent of the state’s energy needs by the year 2025 in an effort to reduce Florida’s dependency on foreign oil.

Charles H. Bronson, Florida Agriculture and Consumer Services Commissioner, hopes the grants will spur economic development:

“We believe that awards such as these are critical in triggering the development of a renewable energy industry in Florida,” Bronson said. “With the backing of and an investment from the state, we’re hopeful that these projects will yield positive results and serve as a catalyst for major commercial investment in this industry.”

The entities chosen for the grants are investing nearly $157 million of their own resources into their renewable energy projects.

The winners of this year’s “Farm to Fuel” grants are:

Gulf Coast Energy of Walton LLC
Awarded $7 million, in a commercial project grant for the construction and operation of both an ethanol and biodiesel plant in a $62 million project in Mossy Head, Florida.

U.S. Envirofuels LLC
Awarded $7 million, in a commercial project grant for the construction of a $47 million ethanol production plant in Highlands County.

Liberty Industries
Awarded $4 million, in a commercial project grant for the construction and operation of a $38 million Liberty County facility that will produce ethanol and electricity using primarily forest waste products.

Agri-Source Fuels
Awarded $4 million, in a commercial project grant for the construction of a $21 million biodiesel plant in Pensacola.

University of Florida
Awarded $500,000, in a research and development grant to develop a catalytic chemical reactor system to convert woody biomass to biodiesel.

Southeast Biofuels LLC
Awarded $500,000, in a demonstration grant to build a nearly $6 million pilot plant in Auburndale to produce ethanol from citrus peels.

Sigarca Inc.
Awarded $499,500, in a research and demonstration project involving the construction of a 3,000-square-foot bioenergy plant on the grounds of the Southeastern Livestock Pavilion in Ocala to process horse waste into renewable energy.

University of Central Florida
Awarded $498,000, in a research and development grant to demonstrate the viability and cost effectiveness of technology developed at the university to convert farm and animal waste into renewable energy.

Florida Institute of Technology
Awarded $415,520, in a research and development grant to cultivate and research various strains of Microalgae capable of producing biodiesel.

Applied Research Associates Inc. of Panama City
Awarded $203,130, in a research and development grant involving converting cellulosic materials such as sugarcane byproducts to fermentable sugars for a more cost-effective way of producing ethanol.

Applied Research Associates Inc. of Panama City
Awarded $182,832, in a research and development grant to demonstrate a new technology in converting crop oils into biodiesel.

Neptune Industries Inc.
Awarded $158,270, in a research and development project that would create a pilot-scale floating algae production system in quarry lakes in South Florida to produce algae capable of being converted into biodiesel.

Source: Florida Department of Agriculture

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Thursday, January 24, 2008

Senate Considers Schafer Nomination

President Bush USDA Ed Schafer Agriculture Secretary Food Fuel

The U.S. Senate Agriculture Committee will hold a hearing Thursday January 24, 2008, on former North Dakota Gov. Ed Schafer's nomination as U.S. Secretary of Agriculture.

President Bush nominated Governor Schafer last October upon the resignation of Mike Johanns.

Gov. Schafer's nomination appearance is not expected to be controversial and he could be confirmed quickly by the full Senate.

The hearing, scheduled for 3:30-5:30 pm EDT UPDATED, will be broadcast online. CLICK HERE to watch the hearing live (Real Video player required).

Source: US Senate

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Wednesday, January 23, 2008

Corvette Racing Goes Green with E85

General Motor's Corvette Racing team will be powered by E85 ethanol, a high-octane, renewable alternative fuel, in the 2008 American Le Mans Series (ALMS).

The most successful team in ALMS history will switch to E85 ethanol--a blend of 85 percent ethanol and 15 percent gasoline in the demanding arena of endurance road racing.

Chevrolet general manager Ed Peper praised the switch to the higher-performing, cleaner burning fuel:

"Since its inception, Corvette has always been a platform for Chevrolet and GM to introduce and develop new technology... The use of E85 ethanol fuel by America's premier production sports car racing team in a high-profile, high-tech racing series like the ALMS shows that Chevy is continuing to lead by example"

E85 ethanol is an option for millions of American motorists and GM has produced more than 2.5 million E85-capable cars, trucks and SUVs on the road in the United States.

GM produces about 400,000 E85-capable vehicles a year and will double that to 800,000 a year by 2010. Chevrolet offers seven E85-capable models in 2008.

Source: General Motors

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Tuesday, January 22, 2008

Bountiful Corn Crop Sets New Record

corn harvest combine food vs fuel Iowa Illinois Minnesota Nebraska

U.S. corn growers harvested a record corn crop according to the U.S. Department of Agriculture's year-end crop report released earlier this month.

The 2007 numbers are complete and the nation's corn growers produced a bin-busting bountiful harvest -- nearly 13.1 billion bushels of corn. The 2007 crop production was up 24% from 2006.

US corn crop food vs fuel 2002 2007 high yield

Corn yields, bushels of corn per acre, were also up in 2007 at 151.1 from 149.1 in 2006. Over five years, yields have improved significantly. In 2002 yield was just 129.3 bushels per acre. Corn growers are getting more production from the same acres using higher-yield seeds and more precision agricultural tools.

The state of Iowa lead the nation in corn production with 2.36 billion bushels, averaging 171 bushels per acre. The next three top corn producing states include:

Illinois with 2.28,
Nebraska with 1.47 and
Minnesota with 1.13 billion bushels.

Source: USDA National Agricultural Statistics Service

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Monday, January 21, 2008

New High-Vitamin Corn Could Improve Nutrition

national science foundation corn maize food fuel

According to the National Science Foundation report, scientists have developed a powerful new tool in the fight against deficiencies in dietary vitamin A.

A deficiency of vitamin A causes eye diseases, including blindness, in 40 million children annually, and increased health risks for about 250 million people, mostly in developing countries.

This tool consists of "a new method of analyzing the genetic makeup of corn that will enable developing countries to identify and increase cultivation of corn that has naturally high levels of vitamin A precursors," says Ed Buckler, a co-leader of the research team from the U.S. Department of Agriculture, Agricultural Research Service and Cornell University

Since corn is an essential part of the diets of hundreds of millions of people around the world, regular consumption by adults and children of adequate quantities of corn high in vitamin A precursors would reduce their chances of developing vitamin A deficiencies and associated health problems.

The team is currently working with various international organizations to help train plant breeders in developing countries to use their techniques.

This new method of increasing cultivation of high-vitamin corn was described in the January 18, 2007 edition of Science.

Source: National Science Foundation

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Sunday, January 20, 2008

High Oil Costs Trickle Down the Pipeline

The Marketplace show on American Public Radio has an informative report this weekend concerning the continuing impact of high oil costs on the struggling American economy.

We all know how $100 crude oil impacts all of us at the gas pumps each week with higher gasoline prices. But Marketplace Money reporter Lisa Napoli looked at the less obvious ways the high cost of energy squeezes consumers.

"A good chunk of the blame goes to high oil prices. This month they hit $100 a barrel for the first time and that means much more than just expensive gasoline at the pump."

Examining a health food warehouse operation, she learns that petroleum-based products are in anything that has to do with packaging and that costs have risen at least 25 percent. And the raw food ingredients which are trucked in from all over the country have increased 20 percent because the farmers have to pay more to run the machines.

She also noted that fuel surcharges are being slapped on everything from taxi rides to plane tickets to anything we get delivered. The result is that the increases in oil prices end up permeating the entire retail economy. But what does that mean to each of us as Americans?

Speaking with Severin Borenstein, an oil industry expert at the University of California, Berkeley, she discovers how this severely impacts all of us:

When the price is, say, $60 higher than we thought it was going to be, when it's up in the $90s instead of down in the $30s, that means the U.S. as a whole is paying an extra $1.2 billion a day for products. $1.2 billion translates to about $4 per person, per day. Almost $1,500 a year more we're spending. If you're scoring at home, that's $6,000 for a family of four.

Our fossil fuel-based economy has long demanded cheap energy to thrive. With oil costs strangling our economy, America will have to commit itself to energy independence, diversification, reduction and technology efficiency. And alternative renewable fuels like biodiesel and ethanol have an important role in that success.

You can listen to the full story online at High Oil Costs (mp3) or High Oil Costs (Real)

Source: American Public Radio - Marketplace

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Saturday, January 19, 2008

Biofuel Research Helps Local Economy

resodyn USDA Butte Montana biofuel biodiesel b100

Is there more to Butte Montana than its historic role in mining?

An exciting research program funded by the USDA is helping to shape Montana as a leader in biofuels research and development.

The project is funding Resodyn Corporation's research to convert used cooking oil into biodiesel. The B100 biodiesel product is made from what typically would be a waste product. In the process, the research is helping to grow the local economy with technical expertise of scientists and engineers.

In this USDA video, officials with the Resodyn Corporation and the local business community discuss the benefits of this cooperative research program that is helping to make Butte's biofuel future a success. The video is available in two formats:

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Friday, January 18, 2008

Safeway Upgrades to Biodiesel

The supermarket chain Safeway announced this week in Denver that it is converting its entire truck fleet to the cleaner burning fuel Biodiesel.

The company is switching over its entire nationwide fleet to B20, a biodiesel blend of 20 percent biodiesel and 80 petroleum diesel. The company had already converted some of its fleet in California and Arizona.

Safeway claims converting its entire fleet will do away with 75 million tons of carbon emissions. That's the about the same as removing 7,400 cars off the nation's highways.

Colorado Gov. Bill Ritter applauded Safeway's conversion of its national trucking fleet to cleaner-burning biodiesel.

"The future of our country depends on the private sector and companies like Safeway demonstrating leadership around how we consume energy"

The governor went on to explain that Safeway's conversion of its truck fleet was a great example of private industry taking a sustainable approach that's good for our economic security, our environmental security and our energy security.

Source: Colorado Governors Office

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Thursday, January 17, 2008

Gasoline Prices Up 84 Cents

DOE energy gasoline prices big oil high food costs

The Department of Energy released its weekly gasoline price as of 1/14/08, and the average price of unleaded gasoline was $3.068, up nearly 84 cents from a year ago.

It's no wonder that the price of gasoline is being blamed for increased inflation and higher cost of food and goods in America. That extra $20 each week for motorists filling up at the pump also means that consumers have less money to pay for those higher cost items as well.

big oil gasoline prices high food costs high prices

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Wednesday, January 16, 2008

Oregon Motorists Begin Using Ethanol

Motorists who fill up with gasoline in Oregon will use a blended fuel that is 10 percent ethanol as part of the state's new renewable fuel standard.

House Bill 2210, also known as Oregon's Biofuel Mandate, passed in the 2007 legislative session and signed into law kicked in when ethanol production in Oregon reached 40 million gallons a year. That capacity was reached last fall and required 10 percent ethanol blend of motor fuel in Oregon.

Starting January 15, 2008, the cleaner-burning renewable fuel is mandatory in nine counties: Multnomah, Clackamas, Washington, Clatsop, Columbia, Tillamook, Yamhill, Polk, and Marion counties.

The rest of the state will follow in stages.

By April 15, 2008, Linn, Lane, Benton, Lincoln, Douglas, Coos, Jackson, Josephine, and Curry counties will join the effort. Finally, by September 16, 2008, all counties east of the Cascades will offer the ethanol-blended fuel as required. The City of Portland has its own requirement for ethanol-blended fuel already in place.

What does all this mean to the average motorist in Oregon?

"The consumer should see minimal difference in mileage or the performance of their vehicle with the new fuel standard," says Wyckoff. "We already have a number of retail locations around the state that have sold a 10-percent ethanol-blended fuel for years. The new law will now just have everyone on the same page."

Advocates of blending gasoline with ethanol say helps the environment, reduces dependency on foreign oil, and will hopefully drop the price of motor fuel. An added benefit to Oregon is the number of jobs created by in-state production of ethanol.

Source: State of Oregon

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Tuesday, January 15, 2008

E85 HUMMER HX Storms Detroit

Which would you rather drive, a HALO Warthog or the HUMMER HX on your next off road adventure?

The HUMMER HX concept was unveiled at the 2008 North American International Auto Show in Detroit, Michigan this past weekend.

Maybe its just a coincidence that the HUMMER HX concept vehicle bears a striking resemblance to the assault vehicles in the successful HALO X-Box video games.

The HX is an E85 FlexFuel Vehicle that is backed by a six-speed automatic transmission. The transmission is teamed with the 4WD system to offer exceptional low-speed traction and crawling capability. Four-wheel-disc brakes provide confident stopping power.

The HX also offers an open-air driving experience via a pair of removable roof panels above the driver and front passenger, and a modular, removable rear roof assembly.

The HUMMER HX just proves E85 has power for all of your driving missions!

Since the HX is a concept vehicle, no production price has been established.

Source: General Motors

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Monday, January 14, 2008

General Motors Partners in Ethanol Venture

gm general motors vinod khosla bill row rick wagoner ethanol

Can ethanol be made from renewables including trash and old tires? General Motors thinks so. And it is getting into the ethanol business in a big way.

GM announced a partnership with Coskata Inc. Sunday at the North American International Auto Show to use the company’s breakthrough technology that affordably and efficiently makes ethanol from practically any renewable source, including garbage, old tires and plant waste.

Coskata uses a proprietary process that leverages patented microorganisms and bioreactor designs to produce ethanol for less than $1 a gallon, about half of today’s cost of producing gasoline.

“We are very excited about what this breakthrough will mean to the viability of biofuels and, more importantly, to our ability to reduce dependence on petroleum,” GM Chairman and CEO Rick Wagoner said.

According to Argonne National Laboratory, which analyzed Coskata’s process, for every unit of energy used, it generates up to 7.7 times that amount of energy, and it reduces CO2 emissions by up to 84 percent compared with a well-to-wheel analysis of gasoline.

For GM, this could lead to joint efforts in markets such as China, where growing energy demand and a new energy research center could jumpstart a significant effort into ethanol made from biomass, Wagoner said.

GM has worked in partnerships with businesses, university and non-governmental organizations during the past two years to grow the U.S. infrastructure for E85, helping to open 300 fueling stations in 15 states. Helping make the fuel more readily available was the next logical step.

One of the criticisms of cellulosic ethanol is that its development is several years away. Coskata CEO and President Bill Roe said the next generation ethanol is here today.

“We will have our first commercial-scale plant making 50 to 100 million gallons of ethanol running in 2011, and that includes the two years it will take to build the plant,” Roe said.

The partnership includes an undisclosed equity stake for GM, joint research and development into emissions technology and investigation into making ethanol from GM facilities’ waste and non-recyclable vehicle parts.

Source: General Motors

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