Coal and Ethanol
The Blue Flint Ethanol facility is unique in the industry. Most ethanol plants are built with a natural gas-fueled boiler to provide heat for drying. As natural gas prices have increased in recent years, coal-fueled plants have become more common. However, Blue Flint does not have a boiler. Instead, waste heat from the adjacent Coal Creek power plant is redirected to Blue Flint to supply all the heat that a boiler would provide. The result is one of the industry’s most energy efficient, environmentally friendly facilities.
BioFuel Energy Company
BioFuel Energy is a development stage company whose goal is to become one of the leading ethanol producers in the United States. Headquartered in Denver, Colorado, the company is currently constructing large-scale ethanol production facilities in Fairmont, Minnesota and Wood River, Nebraska. It is also developing a third large-scale ethanol plant later this year.
Biofuels Boom
Global Insight, Inc., the world’s leading company for economic and financial analysis and forecasting, says in its study, “The Biofuels Boom: Implications for Automotive, Agriculture & Energy,” that more than 100 billion gallons of bioethanol and biodiesel will be produced globally per year by 2030, an amount equal to more than 15% of the world’s motoring fuel needs. Among several major conclusions about current and future technologies, the study reports that
- Projected technological improvements could result in biofuels representing 15% of the global motor fuel demand and as much as 35% of demand in the United States and Brazil
- Corn- and sugarcane-based feedstocks will remain the lowest-cost sources of bioethanol in the world
- Automotive manufacturers do not require technological breakthroughs to adapt to reasonable levels of biofuels and that they can and will respond to clear direction in the area of biofuels
Non-food crops, such as jatropha (a succulent perennial that produces oil seed) grown on marginal lands, and pond-grown algae, will become important sources of biodiesel fuel, reducing dependency on edible oils, such as soybeans, canola and palm, the study reported. The study also found that biodiesel levels of 5% are possible in virtually all vehicles and that new vehicles can be developed to accept blends up to 30%.
The comprehensive study was conducted by Global Insight’s Agriculture, Automotive and Energy Groups who worked with some 20 companies and organizations representing different perspectives of the biofuels industry. The Global Insight team included Dr. Gil Rodgers, senior director of the Energy Group; Philip Gott, director of the Automotive Consulting Group, and Stewart Ramsey, director of Agriculture Services. The international study was released recently at a conference in Monaco sponsored by the Fondation Prince Albert II de Monaco.
Additional information on the results of “The Biofuels Boom: Implications for Automotive, Agriculture & Energy” are available by going to www.globalinsight.com/biofuels.
Corn ethanol plants to add cellulosic ethanol capacity
On this mornings earnings call with Verasun Energy Corp they mention that they are looking at adding cellulosic ethanol production to existing corn ethanol plants. At this time they are looking at the technology and know it is a good fit for their facilities given the fact that they receive some cellulosic feedstock at this time.
With over 142 plants online and an additional 67 plants coming online over the next 2 years this is a great opportunity for cellulosic ethanol to take off at these facilities. The DOE is projecting that the technology to make cellulosic ethanol competitive will be here no later than 2012. I would image we are going to see a huge build up from that time for the next 10 years to meet the ambitious targets set by the Federal Government. The
law increases the Renewable Fuels Standard (RFS) to 36 billion gallons of annual renewable fuel use by 2022. And by requiring that nearly 60 percent of the new RFS be met by advanced biofuels, including cellulosic ethanol, it paves the way for commercialization of these vital next generation ethanol technologies.
Verasun Energy is poised to be in the middle of this major build up being one of the largest corn ethanol producers in the country with their merger with Bioenergy. The stock is trading at near 52 week lows. I would imagine this is a great stock to look at for the next few yrs.
