Tag Archives: USDA

Michigan State University gets $2.9 million for biofuel research

April 23, 2011   Karl   No comments

Michigan State University gets $2.9 million for biofuel research

Michigan State University has received $2.9 million in federal grants for biofuel research.

The U.S. Department of Agriculture awarded five-year grants for three projects focusing on various aspects of producing biofuels, which use renewable plant materials instead of petroleum.

“Americans who are now going to the gasoline pumps and dealing with sticker shock know that we need to find other ways of doing things in this country,” said Kathleen Merrigan, U.S. deputy secretary of Agriculture.

Most gasoline blends sold in the United States contain at least 10 percent of the biofuel ethanol. Nine billion gallons of biofuel were blended into transportation fuels in 2008, and the federal government is calling for 36 billion gallons by 2022.

Merrigan visited MSU on Wednesday to talk about the grants and tour research facilities at MBI International. MBI, based in Lansing and part of the MSU Foundation, helps prepare bio-based technologies and innovations for commercial use.

Overall, the USDA awarded $36.3 million in competitive grants to 27 universities, one college and two USDA research arms for sustainable bioenergy research.

It’s a significant win for MSU, which will use the money to pay faculty and student researchers and fund other project costs, said Doug Gage, director of the MSU BioEconomy Network.

“We are very proud that our faculty are competing against the best in the country and wining awards,” he said.

MSU professors will lead the three research projects on campus that look at topics such as greenhouse gas emissions associated with biomass production and ways to use byproducts from the production of biofuel.

Entomology professor Doug Landis is researching pests that affect switch grass, a plant used to produce biofuels.

Biofuel research is moving away from food plants such as corn in favor of non-food crops or plant waste products.

“It would be inappropriate to place a crop into the landscape that would then cause a spillover effect on our current crops,” Landis said.

Landis will work with other MSU professors and students to conduct research on farms throughout southern Michigan.

“MSU is doing cutting-edge research here on biofuels,” Merrigan said. “They’ve made significant investments, they’re bringing together a variety of disciplines in their scientists to come together and sort of really deconstruct problems, figure out answers.”

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USDA announces $573 million in bioenergy funding opportunities

March 15, 2011   Karl   No comments

In Washington, Agriculture Secretary Tom Vilsack today announced that USDA is seeking applications for loan guarantees under the Biorefinery Assistance Program, and payments to producers under the Repowering Assistance Program, and the Bioenergy Program for Advanced Biofuels.

This funding round includes: $463 million in loan guarantees under the USDA’s Biorefinery Assistance Program;   $25 million under the Repowering Assistance Program to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to process heat or power in the operation of eligible biorefineries; and up to $85 million under the Bioenergy Program for Advanced Biofuels, for advanced biofuel production from renewable biomass excluding corn kernel starch.

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Study finds biodiesel benefits livestock producers

March 10, 2011   Karl   No comments
Study finds biodiesel benefits livestock producers

Study finds biodiesel benefits livestock producers

A study recently completed by CENTREC Consulting Group LLC shows the U.S. livestock industry actually benefits from biodiesel production. Without biodiesel’s market presence, the study determined higher soybean meal prices would have cost the livestock industry $4.8 billion during the 2005-‘09 market year timeframe. The study, titled “Soybean Oil and Meal Economics,” was funded by the USDA.

According to the study, when demand for soybean oil increases, the price of soybean meal tends to decrease. Using this rule of thumb, the study states growing demand from the biodiesel industry for soy oil has produced significant decreases in the price livestock producers pay for soy meal.

The study explains that unprecedented events have occurred in the soybean industry in recent years. This includes shifting demand drivers attributed to the biodiesel industry, declining livestock production and increased export demand. New competition from palm oil and dried distillers grains with soluble (DDGS) has also impacted the soy industry. While record soybean oil and meal prices in 2007 led many to believe these price increases were a direct result of increased demand from the biodiesel industry, the study determined this is false.

Rather, the study states that increased demand for soy oil cannot be blamed for increased soy meal prices, as increased demand for soy oil will actually reduce the price of soy meal so long as demand for soy meal remains unchanged. “The basic economic principle for these coproducts is that when demand for one coproduct increases, the price of the other coproduct decreases,” said the study. “Thus, an increase in demand for soybean oil benefits livestock feeders through lower meal prices.”

Furthermore, the study notes that recently price fluctuations in the price of both soy oil and soy meal can be explained by basic supply and demand factors. One example offered by the study is reduced soybean production in 2007, which substantially contributed to record prices increases experienced that year. The study also points out several other factors that have contributed to volatile prices in recent years, including:

-       Increased demand for protein worldwide

-       The economic recession

-       Fluctuating dollar values

-       Trans fat labeling requirements

-       Increased competition from other edible fats and oils

-       Fluctuating biodiesel production

-       Declining livestock numbers

-       Increased competition from alterative protein sources

-       Increased export demand for soy meal

While the study notes that it is impossible to determine the precise economic impact that changing demand mechanisms will have on soybean producers, processors and end users, the authors note it is possible to calculate approximate outcomes based on historical trends. Using a model developed by the United Soybean Board, the study determined that when all other factors are held in equilibrium, a decrease in soy oil demand from the biodiesel industry would lead to higher prices for soy meal. In fact, the study determined that only end users of soy oil would benefit from reduced demand from the biodiesel industry. “The lower demand would decrease soybean oil prices, and as a result, the oil end-users would experience lower input costs,” the study said. “Soybean meal prices would increase; livestock producers could possibly pay anywhere from $34 to $50 per ton more for their soybean meal by [marketing year 2015]. However, soybean prices would decrease; the annual net returns for the production sector would be lower than if there was the greater soybean oil demand for biodiesel use. Processing margins would be tightened, and the processing sector’s annual net returns would also decrease.”

“No matter whether you are feeding pigs or people, biodiesel is helping meet the world’s growing demand for protein,” said Illinois farmer and former economics and statistics professor Pat Dumoulin. “With these economics, we would all win if the trucks that brought our soybean meal ran on America’s advanced biofuel, biodiesel.”

A fully copy of the study can be downloaded from the National Biodiesel Board’s website.

Thanks and source Biodiesel Magazine

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USDA Approves Corn Enzyme for Biofuel Production

February 15, 2011   Karl   No comments

USDA Approves Corn Enzyme for Biofuel Production

Syngenta will sell corn seed with plans for large-scale production in 2012.

The U.S. Department of Agriculture approved a genetically modified trait in corn developed by agrochemicals producer Syngenta that could improve ethanol yields, Syngenta said Feb. 11.

Syngenta will market the modified corn seed under its Enogen brand name. Syngenta refers to the corn seed as a “breakthrough technology” that can easily be integrated into existing infrastructure.

Syngenta has estimated that Enogen can provide ethanol producers a cost advantage between 8 and 15 cents per gallon.

“Enogen corn seed offers growers an opportunity to cultivate a premium specialty crop. It is a breakthrough product that provides U.S. ethanol producers with a proven means to generate more gallons of ethanol from their existing facilities,” said Davor Pisk, Syngenta’s chief operating officer. “Enogen corn also reduces the energy and water consumed in the production process while substantially reducing carbon emissions.”

Enogen corn seed will be available for the coming growing season with large-scale commercial introduction planned for 2012.

Syngenta will manage Enogen corn production using a contracted, closed production system.
The corn amylase trait in Enogen has already been approved for import into Australia, Canada, Japan, Mexico, New Zealand, Philippines, Russia and Taiwan and for cultivation in Canada.

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Obama calls for more biofuels investment, no oil subsidies

January 26, 2011   Karl   1 Comment

Obama shows his support for biofuel

Calling it “our generation’s Sputnik time,” U.S. President Barack Obama delivered a request during his State of the Union speech for Congress to continue to invest in biofuels and renewable energy technology. “Two years ago, I said that we needed to reach of a level of research and development we haven’t seen since the height of the Space Race,” he said. “And in a few weeks, I will be a sending a budget to Congress that helps us meet that goal. We’ll invest in biomedical research, information technology, and especially clean energy technology.”

Offering a hint as to his strategy to further fund biofuels technology, Obama suggested that Congress should eliminate subsidies for oil companies. “Instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s,” he said. His declaration was met with applause from Congressional members, but the swift response from the petroleum industry indicates passing legislation to end oil subsidies will be a hard fought battle. American Petroleum Institute President and CEO Jack Gerard called Obama’s speech a missed opportunity and countered Obama’s claim that investing in biofuels and clean energy will create new jobs. “The oil and natural gas industry is a key driver of new jobs and economic prosperity,” Gerard stated. “Producing more oil and gas at home, which most Americans want, could create hundreds of thousands of jobs, reduce our deficit by billions, and enhance our energy security … The oil and natural gas industry provides over 60 percent of America’s energy, and it will continue to be the energy leader for decades to come. We need to produce U.S. oil and natural gas resources. This means getting back to work in the Gulf of Mexico, access in Alaska, and opening up the Atlantic and Pacific coastal areas to exploration. This is an issue the President and the new Congress should address.”

Renewable Fuels Association President Bob Dinneen pointed out that the domestic ethanol industry already supports approximately 400,000 jobs and “we have only begun to scratch the surface” on the country’s potential for ethanol production. “The potential of domestic ethanol production to meet the challenges facing this nation is great and can be unleashed through sound, responsible public policies,” he said. “American ethanol producers stand ready to work with President Obama, his administration and this Congress to implement thoughtful policies that are sensitive to fiscal concerns yet continue to foster the kind of innovation that has made this nation the leader in renewable fuel technologies.”

Already this year, the Obama Administration has taken steps to further support biofuels growth in the U.S. The U.S. EPA recently expanded its approval for E15 use in vehicles to include model years 2001 to 2006. The USDA awarded $405 million in loan guarantees to cellulosic ethanol producers on Jan. 20 and additional guarantee approvals are expected soon. The USDA also followed through on a late-2010 declaration to provide assistance to advanced biofuel producers, authorizing more than $10 million to be issued to advanced biofuel producers in 33 states. Funding for both the loan guarantees and the producer payments was made possible through the 2008 Farm Bill.

Source and thanks to ethanolproducer.com

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