FIFTEEN PERCENT ETHANOL BLENDS SAFE FOR ALL VEHICLES

Many, many moons ago, members of the ethanol industry asked the US EPA to consider raising the blend level of ethanol to gasoline from 10 percent (the current level) to 15 percent. 

While the industry waits for an answer (the US EPA might provide a final verdict later this month), bits and pieces of the research the Department of Energy is conducting have made their way out.  That research is focused on 2001 model years and newer, but the ethanol industry feels that 15 percent ethanol blends are safe for older vehicles too.

Now, research released today from Ricardo indicates that fuel systems of older cars would not be adversely affected, giving the US EPA absolutely no scientific reason to approve E15 for only 2001 model year cars and newer.

In researcher speak, “The analysis concluded that the adoption and use of E15 would not adversely affect fuel system components in properly engineered vehicles, nor would it cause them to perform in a sub-optimal manner, when compared to the use of E10.”

This is big news for the industry.  Still, recent activities in the US EPA indicate that data simply clouds the pathway to bureaucratic agenda.  The final verdict remains to be seen.

In other ethanol news, the Renewable Fuels Association has a new ethanol ad running in Washington, DC this week, aimed at reminding legislators about the job growth potential increased ethanol usage presents. 

http://www.youtube.com/v/1THkmM72vnY?fs=1&hl=en_US

Illinois corn farmers wait and see.  Will this valuable, expanding market for their product be allowed access to the US market or will we continue to export cheap ethanol and import expensive oil at the expense of our American economy and national security?

Dave Loos
ICGA/ICMB Ethanol Expert

ETHANOL EFFICIENCIES FUEL A GREEN REVOLUTION

During a recent tour of Illinois River Energy in Rochelle, IL, the Illinois Corn Marketing Board and staff learned about new and innovative techniques to produce ethanol that lesson the energy requirement and create more valuable co-products.  Corn-based ethanol gets more and more efficient every day!
Did you see in this recent study by Stanford University, the researchers determined that high yield agriculture prevented the equivalent of 590 billion metric tons of carbon dioxide from entering the atmosphere?  According to the researchers, their results, “Dispel the notion that modern intensive agriculture is inherently worse for the environment than a more ‘old-fashioned’ way of doing things.”
High yield agriculture is good for the environment.  And these higher yields are what is producing enough corn to fuel our countries green-energy revolution. 

CAUTION: MEN AT WORK

The Illinois Corn home office is under construction this week. We’re trying to prepare for our June board meetings by repairing some massive pot holes in our parking lot and driveway. What that means for those of us in the office is parking a little further away and doing a bit of a hopscotch move to get into the front door of the building without stepping in drying cement.


Inside the office, we’re under construction too. In fact, there’s a host of issues and events that we’re working on! Some have short deadlines, some have been in progress for decades, but much like the men outside pouring cement, we’re dedicated and can’t wait to see these projects to completion.

It’s just that we’re going to do so with our shirts ON.

Locks and Dams

If you take a look at our website and visit the locks and dams section, we boast that this just might be the year that Illinois corn farmers finally see funding for lock and dam upgrades. What led us to that conclusion is partly that industry and the Army Corps of Engineers have come to an agreement on how to fund the upgrades AND complete them efficiency. We’ve been taking this message to Congress and have found that they are particularly receptive to groups that have their own funding streams to partner with federal dollars! But we also know that if we don’t get lock and dam funding this year, we might have to wait a few more before we push it again. So … 2010 is the year in our minds because the timing just won’t be right next year. Call your Congressman and ask that they fund lock and dam upgrades!

CornBelters

Opening day is June 1! That means that the rest of the week and Tuesday, we’ll be hard at work preparing messaging, coordinating media, assigning tickets, outfitting our suite, and doing all the other miscellaneous work that accompanies our CornBelters partnership. Please join us for opening day when our ICMB Chairman, Jim Rapp, will throw the first pitch! If this is something that interests you, you might check out our recent podcast.

Ethanol

Now that we finally have the first blender pump operating in Sullivan, IL, we can return to other ethanol issues that are close at hand. The EPA indicates that they will issue a decision on higher ethanol blends this summer and we continue to press our Illinois Delegation to co-sponsor HR 4940, the Renewable Fuels Reinvestment Act. This act would extend the Volumetric Ethanol Excise Tax Credit among other things and will help ethanol remain a valuable partner in developing rural communities, lessoning our environmental impact, and accomplishing energy security. Kuddos to the Illinois Congressman that have already co-sponsored this important bill – if your Congressman doesn’t appear here, give him or her a call today!

Social Media

We have hired several interns for the summer that will start next week working on social media projects and helping us continue to gear up our social media presence. As you’ve obviously noticed, our blog posts and content are improving daily, but we can’t wait for them to arrive, helping us populate our youtube channel with valuable information and maybe even getting more facts and data our on facebook and twitter. If you aren’t already following us on all of these important outlets, I’d encourage you to check into them!

There are a million other “projects under construction” in our office but this definitely gives you a flavor for what the Illinois Corn staff and boards are up to right now. Please notice that we can’t complete many of these projects without your help! Consider contacting your Congressman on the above issues to thank him and ask for his help on the things that matter to you. Consider partnering with us on the social media front by following us on twitter, Facebook, youtube, or the blog and forward our messaging to your friends and family.

As they say, it takes a village. And I could sure use your help as I traverse the construction area outside our door! That’s one construction project that can’t be done soon enough.

By: Lindsay Mitchell

ICGA/ICMB Marketing Director

AN EVEN TRADE?

The Renewable Fuels Association released a report yesterday regarding U.S. ethanol exports. According to the report, our ethanol exports are surging partly because the U.S. is the lowest cost producer right now and also because we have extra ethanol we can’t use within our country.

Both of these concepts might come as a shock to you so let me give a brief explanation. Ethanol produced in Iowa is currently $1 cheaper per gallon than ethanol produced in Brazil. Blending 10% ethanol from Iowa into a gallon of gasoline would be $0.11 cheaper than the same blend containing ethanol from Brazil.

I’m not shocked that U.S. farmers and ethanol producers are the most efficient in the world, but I’m sure some are.

And in regards to the second point, we do have additional gallons of ethanol that we can’t use in the U.S. right now. Since the U.S. Environmental Protection Agency will only allow a 10% of each gallon of gasoline to be ethanol, we simply don’t have any more gallons of gasoline to blend into.

But all the summaries and background information aside (you can read that here), there are a couple of take home messages from this data that I just can’t ignore.

First, I wish the world, the government, and the American consumer would notice that American corn farmers are doing EXACTLY as we said they would – they are producing more than enough corn to feed and fuel the world. Corn farmers have grown enough corn to feed all the livestock in the U.S., to export corn to other countries to feed their livestock, to fulfill the needs of all the food markets in our country, to produce all the ethanol that our entire nation can use, and now to ship our ethanol to other countries.

Why did anyone doubt us and when is someone going to notice? American corn farmers can produce corn. They can produce exponential yields using less fertilizer, fewer chemicals, and contributing to minimal soil erosion. When is someone going to stand up and give the corn farmer credit for this incredible story of production and environmental stewardship?

Secondly, and maybe more importantly, why are we shipping ethanol to other countries at the expense of our own energy security!?

To quote the RFA report, “As long as domestic ethanol usage is restricted by the regulatory limitation on 10% blends, the U.S. ethanol industry will be forced to look to the global marketplace for new demand sources. And, as a result, Americans will miss out on the opportunity for greater fuel savings and a healthier, more secure domestic energy supply.”

I admit that I obviously have a bias because I love corn farmers, I love corn, and I love ethanol. But am I the only one thinking that trading our safety, our health, and our cash for more oil overseas because of government rhetoric is crazy?

Dave Loos
ICGA/ICMB Technology & Business Development Director
(and ethanol expert!)

WHAT QUALIFIES AS GLUTTONOUS PROFITS? HOW ABOUT 8,000%!

If you’re looking for a good read, I think you might have just stumbled across one.

Take a look at this article by Marc J. Rauch, Executive Vice President of The Auto Channel which claims to be the “largest independent automotive information resource.” I don’t know about that, but I do know that Mr. Rauch is in favor of calling a spade, a spade.

The article quickly chronicles the arrival of a news tip in his inbox entitled Automakers Concerns with E15, and his thoughts on the folks that wrote the article, their lack of facts, and their unbiased support of the oil industry.

He offers some great quotes. For one, “The story’s byline claims that its author is with the ‘Ethanol Transparency Project,’ a sponsored program of “The Agribusiness Council.” After perusing information about The Agribusiness Council I would say that its name is as ill-conceived in describing its real purpose as “National Socialism” was to describe Hitler’s Nazi Party.”

And he summarizes the article by saying, “Except for those people who make gluttonous profits from the petroleum oil, it is in everyone’s best interests to destroy OPEC and the ruling hierarchy of the gasoline companies. Energy independence from foreign dictators and terrorism supporters can be had, and there are economically viable alternatives to gasoline that are available right now. Alcohol (ethanol) is one, and it may be as close to a viable single source solution to oil as is possible.”

I won’t ruin it for you. Come check it out here.

By: Lindsay Mitchell
ICGA/ICMB Marketing Director