Wisconsin Bio Industry Alliance

The Obama Administration announced today that is will provide $30 billion in loan guarantees for renewable energy projects like ethanol and biodiesel.  These loan guarantees will help create new jobs while fostering innovation in Wisconsin’s emerging biofuels industry.

U.S. Energy Secretary Steven Chu said, “These investments will be used to create jobs, spur the development of innovative clean energy technologies, and help ensure a smart, strong and secure grid that will deliver renewable power more effectively and reliably.”

Applications for these guaranteed loans will be accepted over the next 45 days. Biofuels producers interested in applying for a guaranteed loan can click here for information about the program and application process.

More information can also be found by visiting www.lgprogram.energy.gov.

For audio of this Tuesday Truth, click here.

According to the National Renewable Energy Laboratory, it takes only three gallons of water to produce one gallon of ethanol. Think that’s a lot of water? Here are some water statistics from the U.S. Geological Survey:

• 14 gallons – amount needed to grow ONE orange
• 65 gallons  – amount needed to produce ONE serving of milk
• 100 gallons – amount needed to grow ONE watermelon
• 39,000 gallons – amount needed to produce ONE automobile

For audio of this Biodiesel Basic click here.

Biodiesel, a renewable fuel made right here in Wisconsin, reduces a number of harmful vehicle emissions when used instead of conventional diesel.  Here are a few facts:

• Biodiesel reduces lifecycle carbon dioxide emissions by 78 percent compared to petroleum diesel.
• Emissions of carbon monoxide, a poisonous gas and contributing factor in formation of smog, are reduced by 50% when using biodiesel.

For audio of this Tuesday Truth click here.

In a recent letter to EPA Administrator Lisa Jackson, ten Midwest Governors, including Wisconsin Governor Jim Doyle, voiced their support for the E15 waiver being considered by the EPA. The waiver asks to raise the limit of ethanol blended in gasoline to 15 percent. Here are a few reasons they cited for their support of E15:

• The current blend limit hinders out ability to meet the targets of the renewable fuel standard (RFS), which aims for using 36 billion gallons of renewable fuels by 2022. Increasing the blend wall will make reaching this target possible.
• Increasing our use of domestically produced fuels will help decrease our dependence on foreign oil. Every barrel of ethanol produced displaces 1.2 barrels of petroleum that would have otherwise been imported.

July 27-29 the Northeast Wisconsin Technical College will hold a series of workshops on renewable energy and sustainable practices that will include Renewable Energy – Solar, Sustainable Design and Biofuels.

The biodiesel workshop will show participants the fundamentals of turning organic materials into renewable fuels.  Day 1 will give an overview on biodiesel and what it takes to become a producer.  Day 2 will give particpants a chance to actually make their own biodiesel, and Day 3 will explore quality standards and engine performance.

The workshop will run from 10 a.m. to 4 p.m Monday, July 27 through Wednesday July 29.  There is a $40 fee for each session attended.

To register online, go to http://www.nwtc.edu, click on the my.NWTC button and follow the instructions.  To register by telephone, call (920) 498-5444 or (888) 385-NWTC, ext. 5444.

Rising food prices have become a growing concern for many Americans. While some blame biofuels for the spike in prices, making biodiesel from soybeans actually has a positive impact on the food supply. Here are a few facts:

• Processing soybeans for biodiesel uses only the oil, leaving 80 percent of the bean for soybean meal. This means that when demand increases for soybean oil for biodiesel, the supply of soybean meal actually increases.
• In 2007, U.S. soybean farmers used less than 12 percent of the nation’s soybean harvest, and 81% of each soybean still went into protein markets to feed livestock and people. [source: http://biodieselsustainability.com/faq.html, accessed 7/15/09]

DOE and the U.S. Department of Treasury issued guidance last week on the process for renewable energy project owners to receive direct federal payments in lieu of tax credits. Most large renewable energy projects are eligible to receive federal tax credits, and prior to the economic downturn, it was common for such projects to receive financing from third parties that would benefit from the tax credits. But with most companies now earning lower profits and expecting to pay lower taxes, that tax-credit financing has dried up, making it more difficult to take advantage of the tax credits. To address that issue, the American Recovery and Reinvestment Act authorized the Treasury Department to make direct payments to companies that create renewable energy facilities and place the facilities in service on or after January 1, 2009. See the February 18 article from this newsletter on this aspect of the Recovery Act.

The Treasury Department has set aside $3 billion in Recovery Act funds for the direct payments, sufficient to support an estimated 5,000 facilities using biomass energy, solar energy, wind power, and other types of renewable energy. The agency is not yet accepting applications for the direct payments, but by releasing the guidance documents now, the Treasury Department aims to give businesses ample time to prepare their applications. The agency intends to launch a Web-based application process in the coming weeks. See the DOE press release and the terms and conditions, guidance, and a sample application for the direct payments on the Treasury Department Web siteOffice of Energy Efficiency and Renewable Energy (EERE)

A weekly newsletter from the U.S. Department of Energy’s (DOE) . The EERE Network News is also available on the Web at: www.eere.energy.gov/news/enn.cfm

Please click here for audio of this Tuesday Truth.

Since ethanol is substantially cheaper than gasoline, higher blends of ethanol in gas help keep prices low. Here are a few facts:

• The average price of ethanol today in Wisconsin is $1.86, 25% less than a gallon of gasoline [source: http://www.ethanolmarket.com/fuelethanol.html, accessed 7/13/09].
• On average, consumers save more than six cents per gallon by using gas blended with up to 10 percent ethanol.
• By using higher blends like E85 (85% ethanol, 15% gasoline), flex fuel drivers in Wisconsin can often save more than 80 cents per gallon [source: http://e85prices.com/wisconsin.html, accessed 7/13/09].

Robert White, Director of Market Development for the Renewable Fuels Association, distributed the comments below following a story in the New York Times regarding E85:

“Recently, many of you have heard stories about E85 sales declining in states like Iowa and Minnesota. Unfortunately, as gasoline demand has fallen off so too has demand for E85, along with economic forces causing some stations to simply close. Despite the drop in demand in a few states, overall E85 demand continues to grow nationwide, thanks in part to RFA’s work to expand E85 and blender pump infrastructure outside the Corn Belt.

“Some long time E85 and ethanol advocates have suggested that price should be the only reason consumers buy E85 and went on to warn consumers to “never, ever, ever buy E85 when it is priced higher than gasoline.” This was seen in today’s NY Times.

“The RFA does not support such a sentiment. Ethanol-blended fuels offer a wide variety of benefits including increased energy security, domestic job creation, cleaner air and a stronger environment, and support for America’s farmers, just to name a few. It is the RFA’s belief that, like all products in the market, consumers should be given a choice and allowed to choose their fuel based on their own values system. As an example, we witnessed only a 33% dip in the Southeast in E85 sales when prices flipped in the past few months. This clearly demonstrated there was more to it than just price. If price is key to some, so be it. But consumers should never be instructed not to buy ethanol, especially from within the ethanol industry.

“The RFA’s Market Development team remains committed to working with gas stations, fuel supplies and automakers to expand E85 and blender pump infrastructure across the country. I encourage all of you to explore our work and newly launched website Choose Ethanol.

If you have further questions, please don’t hesitate to let us know.”

Robert White
Director of Market Development

Large and small companies across the U.S. use biodiesel in an effort to decrease their carbon footprint and be environmentally friendly. Here are a few that have made biodiesel a part of their regular operations:

• The city of Milwaukee’s Public Works has been using B20 in its vehicle fleet since 2006.
• Sysco Corp., the largest foodservice marketing and distribution organization and the owner of the largest private truck fleet in the United States, uses biodiesel blends in some of its fleet.