Until recently we’ve witnessed all sorts of knee-jerk reactions to the subject of renewable fuels.
My favorite is the idea that our farmers are going to be able to produce corn for ethanol, soy beans for biodiesel and food for both animals and humans without driving prices higher. Finally, I’ve heard several intelligent comments about renewable fuels this month. I’d like to pass some of them along to you.
The EPA just issued a final ruling on renewable fuels. This ruling requires us to incorporate the equivalent of 7.5 billion gallons of gasoline into our motor vehicle fuels by 2012. Like it or not, the EPA will cause action to take place.
Biodiesel in ULSD Fuels – Colorado ’s Senate Appropriations Committee recently killed a bill which would mandate 5 percent blends of biodiesel and 10 percent blends of ethanol in fuels sold in their state. The Committee vetoed the bill because of its concerns over biodiesel fuel quality. Although the Committee favors renewable fuels, it elected to wait until more of the quality issues are better understood.
Major U. S. diesel OEMs are now accepting the use of fuels containing significant biodiesel content. Caterpillar endorsed the use of up to 30 percent biodiesel blends in pre-2007 engines, while Cummins accepted diesel fuels with biodiesel contents as high as 20 percent. Both manufacturers prefer 5 percent blends.
Detroit Diesel, Mack, and Volvo are also recommending 5 percent blends, but at least Detroit Diesel is gaining experience with 20 percent biodiesel blends. Again, resolution of quality issues and a national biodiesel specification will speed the acceptance of higher biodiesel contents.
The Cleveland, Ohio RTA is beginning to test 5 percent biodiesel blends in its buses. The Cleveland RTA has a history of being innovative – it was an early adopter of CNG-powered buses. It will be interesting to see how Cleveland busses perform next winter.
ConocoPhillips and Tyson Foods recently announced an alliance to develop and market renewable diesel fuels produced from beef, pork, and poultry fat by-products. What a great idea! Animal fat by-products can be a significant source of renewable diesel fuel without interfering with our nation’s food supply. Besides, all that trans fat needs to go somewhere!
Ethanol in Gasoline – People all across the Nation are now beginning to understand the effect of using corn as a feedstock to produce ethanol. The price of corn has doubled, and we are nowhere near the 10 percent ethanol content that some farming states have mandated.
The Senate Energy and Natural Resources Committee recently reviewed a bill requiring 20 billion gallons of ethanol to be produced using feedstock other than corn by 2022. They specifically mentioned the use of feedstocks such as switch grasses, cornstalks, leaves, and wood chips. There are currently some technical problems, but at least the committee is placing emphasis in the proper areas. In addition to setting aggressive ethanol production targets, the Senate Energy committee is also asking for a 50 percent increase in government R&D spending on producing ethanol from non-corn feedstocks.
Energy production may also play a significant role in a farm bill now be-fore Congress. In a meeting to discuss the bill, Hunter Moorhead, a special assistant to President Bush, stated it was time to expand the production of biofuels away from corn-based ethanol. Agriculture Secretary Mike Johanns said the farm bill will also fund research for other types of biofuel production such as cellulose. Things that were waste can be significant contributors to renewable fuels.
And finally, I heard the President of Shell Oil, John Hofmeister, on the Today Show, state that Shell was focusing its renewable fuels R&D on the production of ethanol from cellulosic materials. He thought it was a mistake to use our Nation’s food supply as a source of renewable fuels.
