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In
This Issue: |
FYI Newsletter Volume 7, Issue 23, December 31, 2002
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Monsanto Making Progress on the Perfect Corn for
Ethanol
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E85 and Vehicle Identification Numbers
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Gas
Stations Can Get Grant for Selling High-Ethanol Fuel
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Letters to the NEVC
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NEVC
Board and Membership Meeting Just Announced
• Reflections on 2002 and
Observations for 2003 |
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Monsanto
Making Progress on the Perfect Corn for Ethanol
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- from OsterDow Jones, December 16, 2002
 How much ethanol can be squeezed out of a bushel of corn? The
Monsanto Corporation,
primarily a genetics company famous for its biotech
varieties of corn, soybeans and cotton (and a member of
the NEVC), is in the midst of a eight- to ten-year project
to find out, according to a couple of company specialists
who sat down for a teleconference with OsterDow Jones.
"That's our goal," Brad Krohn, a Monsanto scientist said, "to
improve the yields of ethanol per bushel."
But there's more. Finding, and then eventually improving, the best
corn to produce the most ethanol will also serve the
purpose of increasing the prices farmers get for their
crops as well as lowering the overall cost of producing
the fuel that farmers hope will some day be in every U.S.
gas tank.
Matt Kraus, a commerce development specialist with the
Missouri-based company, said the average bushel of corn
nets 2.65 gallons of ethanol.
When asked how much a bushel of Monsanto corn might yield
in eight to ten years as a result of the project, Kraus
refused to hazard a guess.
Eight to ten years may seem like a long time to corn farmers
seeking increased yields and refineries looking for lower
production costs, but according to the two Monsanto
officials, the benefits of the project are already being
seen with farmers receiving premiums based solely on some
of the company's initial work.
Bringing Down the Cost
At one time it cost $2.00 to make a gallon of ethanol. Now it's
less than half that, but there's still room for
improvement, according to Krohn.
"The last frontier...what can you do to improve the corn, the
feedstock of that corn, to make that industry even more
effective?...That's where we're at," Krohn said.
"If you look at ethanol production today, good efficient plants can
make a gallon of ethanol at $0.90 or even less if you're a
really good plant, but the cost of producing that ethanol
is mostly in the cost of that corn. The industry has done
a tremendous job over the last 20 years and they deserve
much of the credit for driving the cost down."
Three Development Stages
Eventually Monsanto will begin enhancing corn on the genetic level
to make the perfect variety for ethanol production, but
that is the third and last stage, and it's a long time
off.
The first stage of this process, identifying the
commercial hybrids that produce the most
starch, the key ingredient for ethanol, is relatively close to
completion.
Just last month Monsanto Vice President Jerry Steiner announced
that the corn hybrids have already been planted, harvested
and are being tested at seven commercial dry mill
facilities in Missouri, Nebraska, South Dakota and
Minnesota.
"Because the majority of dry mill ethanol plants are partially
owned by growers," Steiner said, "any increase in ethanol
yield would result in significant return on investment to
growers."
Kraus explained, though, that those returns are already being
realized. He said, "We've made enough progress so far in
screening our commercial lineup that we can say we already
have high fermentable hybrids on the market this fall."
Krohn followed up, stressing, "There will be in fact some pilot
programs this year where some plants will be asking their
farmers to grow these specific hybrids because they think
it will improve productivity of their plants and in some
cases they are actually paying premiums to growers...to
grow these specific hybrids...because they think it will
increase the ethanol yields."
Monsanto believes it too after extensive laboratory testing.
Krohn explained that "so far, at the stage we're at, we see as much
as a 10% difference in ethanol yield between the worst
fermenting hybrid and the best...and what were doing is
were selecting our best fermenting hybrid and then taking
them to a later stage where we actually do more in-depth
analysis."
A 10% differential can be quite significant and begs the question:
What is the yield on the "best" hybrids being tested by
Monsanto? When asked, Kraus would only say, "We don't
necessarily want our competitors to know what we've got."
The second, or intermediary stage, creating the perfect corn
variety for ethanol production, involves using the
information acquired during the hybrid screening now being
performed "to actually start to breed for hybrids that
have even better yields of ethanol per bushel," according
to Kraus.
He said the corn hybrids include biotech and non-biotech varieties
already commercialized by Monsanto.
Those results might be available in as little as two years, but the
most complex and time-consuming step remains the final
stage of genetic manipulation and the field trials to
prove the concepts and all of the government safety and
environmental oversight which that entails.
"The biotech process is the long one - to prove the concept,
demonstrate safety in the field and the environment,"
Kraus said.
 Ethanol
Chevys
Monsanto is particularly proud of its E85 fleet, expected to
eventually grow to about 2,000 vehicles. That may not be a
lot, but the trend is not spreading quickly, according to
a Chevrolet spokesman, who said E85 vehicles make up
roughly 2% of its output and all of those are sold in the
Midwest.
Nevertheless, Kraus said proudly, "Each time you fill up a
Silverado, you use 10 bushels of American corn" and he
offered a slogan: "It's getting more fuel from the
Midwest rather than the Middle East." |
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E85
and Vehicle Identification Numbers |
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Unfortunately, E85 compatible “labeling” is not very
apparent with many flexible-fuel vehicles (FFVs).
Some Ford FFVs are stamped with the “road and leaf” symbol
but other manufacturers’ E85 compatible vehicles are a bit
more difficult to discern from gasoline-powered vehicles.
The sure way to know if a vehicle can be fueled by the
clean, domestic fuel is to reference the vehicle’s
identification number or VIN.
Vehicles contain seventeen digits used in identifying
their system's characteristics. The second, third
and eighth digits in the VIN distinguish it being an E85
powered vehicle. The 2nd digit tells the “make" of
the car (Ford is “F”, Chrysler is “C”, GM is “G”, etc.).
The 3rd digit is "vehicle type" (passenger car,
multipurpose vehicle without side airbags, etc.).
The 8th digit is the "engine digit" (2.7L FFV V6 engine,
5.3L FFV V8 engine, etc.).
A complete listing of FFV VINs can be found on the NEVC
website at
www. E85Fuel.com. |
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Gas Stations Can Get Grant for Selling High-Ethanol Fuel |
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- from the Associated Press, December 12, 2002
Iowa gasoline stations can receive up to $25,000 for
installing a pump that dispenses 85 percent ethanol and 15
percent gasoline, known as E85, at their stations, the
Department of Natural Resources said.
"This is a great opportunity for Iowa retailers to help
increase E85 use in our state," said Jennifer Moehlmann,
program planner with the DNR. "More than 22,000 vehicles
in Iowa have the capability of using E85, and expanding
our fueling infrastructure is important for serving those
vehicles."
The National Ethanol Vehicle Coalition, an association of
ethanol advocacy groups, is sponsoring the funding
program.
The high ethanol fuel can be used in specially designed
Flexible Fuel Vehicles that can run on E85, 10 percent
ethanol, or regular gasoline. Several major car
manufacturers currently make models of FFVs, including
many current sedans, minivans and pickup trucks.
Currently, Iowa has eight fueling stations in Ames,
Council Bluffs, Garner, Sergeant Bluff, Lake Mills,
Northwood, West Des Moines and West Burlington.
The NEVC E85 infrastructure application is due on January 16,
2003. You may download the application at
http://www.e85fuel.com/application.htm. For
questions, contact Michelle Saab at
info@e85.com or by phone at (573) 635-8445. |
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Letters to the NEVC -
This section highlights emails that the NEVC has recently
received. Many of the comments or suggestions that
we receive are of interest to a wider audience and we
would like to share them with our readers. |
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What a Good Idea!
Thanks for the great and vitally necessary work you are
doing to ensure incentives for E85.
Personally, I think the best, most powerful and innovative
thing you could do to speed the use of E85 would be to
convince Honda, Toyota, Mazda, Nissan and Subaru to make
all their new cars and SUVs Flexible Fuel Vehicles and
encourage them to create FFV retrofit kits for older
models. A huge and passionate market exists that is
completely unserved by American manufacturers. The
environmentalist/Cultural Creative subculture would use
E-85 in a heartbeat if such "real" cars could use E85.
In my 30 years of environmental activism I've yet to meet
any like-minded soul that owns an American vehicle.
They simply don't consider such vehicles intelligently
designed or very fuel efficient. It's very discouraging to
get everyone hyped on E85, only to tell them they have to
trade in their Honda or Subaru Outback for a Chrysler
Minivan or a Ford Explorer!! No sale. I lose them
instantly.
The point is: the environmentalist/Cultural Creative
market is HUGE. These folks would likely and potentially
become the most passionate promoters of E85. But the
vehicles of choice simply aren't there for them.
So.... You'd really help us all if you could get the
Japanese to commit to Flexible Fuel manufacturing and
conversion. I think that even if a conversion kit
cost $500 - $1,000, plenty of people would go for it.
Certainly, we could move lots of conversion kits here in
Santa Fe -- for Subaru Outback, Honda Accord, Civic, and
CRV and Toyota trucks and 4runners. And the real
Prince of the Road would be the Honda and Toyota hybrids
running on E-85.
Oh and re: tax credits. An excise tax reduction/exemption
would be vastly preferable to a tax credit. Simply reduce
the federal excise tax on ethanol so the consumer benefits
right at the pump with a lower price. This is what I'm
encouraging our legislature to do in NM. Cut 8 cents/gal
off the state excise tax.
Anyway, we're doing our best here to promote alternative
fuels.
Charles Bensinger
Santa Fe, New Mexico
Pricing of E85
The
following email was written to NEVC Executive Director,
Phil Lampert.
I was wondering if you had any price information regarding
E85, i.e. what the current price per gallon is around the
country and if you have any historical price information.
Thank you,
Trent
. . .
Trent,
Currently, there are about 250 sites across the nation
that sell E85.
Where there is competition in the marketplace such as
Minnesota with the more than 70 public E85 stations, the
price of E85 averages 15 to 20 cents per gallon LESS than
unleaded gasoline. In areas of the nation where
competition is limited, the price of E85 is the same as
unleaded. In areas where there is no competition and
federal/state/and other fleets that must purchase the fuel
are using it, we sometimes see E85 20 cents per gallon
MORE than unleaded gasoline.
This office will be working in the 108th Congress to
acquire additional federal income tax credits to further
reduce the price of E85. We are seeking a $0.50 per
gallon tax incentive. This was passed by the Senate
in the 107th Congress, but the Energy Bill failed in
Conference. I have attached a short White Paper that
outlines our efforts.
Should you have additional questions, please contact me at
your convenience.
Phillip J. Lampert
Thanks for the emails to the NEVC! Feel free to
email us with your comments at anytime.
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NEVC Board and Membership Meeting Just Announced |
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The National Ethanol Vehicle Coalition’s annual board and
membership meeting has been scheduled for February 25,
2003 from 1:00 – 5:00 p.m. in conjunction with the
2003 Commodity Classic in Charlotte, North Carolina. The
meeting will be held in the Johnson Room at the Hilton
Charlotte and Towers at 222 East Third Street. More
information can be found at
http://www.e85fuel.com/front_page/board_mtg_invite.pdf.
Please contact Randa Barker by February 3 at
info@e85.com or at (573) 635-8445 if you plan
to attend or for any questions. |
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Reflections on 2002 and Observations for 2003 |
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On behalf of the Board of Director’s and the staff of the
National Ethanol Vehicle Coalition, I would like to
thank you for your support, guidance, and advocacy during
the past year. We achieved many successes and as is
the case in life and liberty, we were part of a few
failures.
Much progress was achieved through the establishment of new
fueling sites and the receipt of federally appropriated
funds to set up new E85 sites. Additionally, the
Senate of the United States Congress included E85 in their
alternative fuel tax incentive package. While the
final energy bill was unable to be approved, significant
progress and educational efforts were accomplished.
As we start the new year, I think about our dedicated troops
in the Middle East and wonder if that part of the world
did not contain two-thirds of the Earth’s known crude
reserves, if the U.S. would be so actively involved.
As my parents worried about their son being sent to fight
an overseas war, I must admit that the same has crossed my
mind in regard to my 17 year old son. Not only does
war in the Middle East appear eminent, as this is written,
the 4th largest exporter of petroleum to the
U.S., Venezuela, is locked in an economic and political
struggle that has resulted in gasoline prices to rise in
this country. Using the terms of the energy industry,
petroleum stability is about as “oxymoronic” as
clean coal.
Some members of Congress are calling on the President to
release crude from the Strategic Petroleum Reserve as a
result of the “Venezualian crisis”. We could only
pray that those same members would be as verbose regarding
the need to develop a domestic-renewable source of
transportation fuel.
Will 2003 be the year that the nation can finally adopt a
strategy whereby a certain, but very small, percentage of
our total transportation fuel must be derived from
renewable resources? Or will we continue to increase
dependence on imported petroleum? My crystal ball
remains fuzzy, but I can pledge that with your continuing
support and assistance, the NEVC will continue to work,
struggle, cajole, and encourage all that listen to use
renewable transportation fuels.
God Bless and may your new year be peaceful, prosperous, and
joyful.
Executive Director, NEVC
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NEVC Calendar
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February 17-19, 2003
8th Annual National Ethanol Conference: Policy
and Marketing at the Camelback Inn Marriott Resort in
Scottsdale, AZ. For more information, call BBI
International at (800) 567-6411.
February 18-20, 2003
Western
Petroleum Marketers Association Annual meeting and trade
show for February 18- 20, Las Vegas, NV.
For more information, visit
www.wpma.com.
February
25, 2003
2003 Annual NEVC Board and Membership Meeting in
Charlotte, NC. For more information, visit
http://www.e85fuel.com/news/board_mtg_invite.pdf or
email
info@e85.com.
February 27 – March 1, 2003
2003 Commodity Classic at the Charlotte Convention Center
in Charlotte, NC. For more information, visit
www.commodityclassic.com.
February 28 – March 3, 2003
The National Farmer’s Union 101st anniversary
convention in Anaheim, CA. For more information,
visit
http://www.nfu.org/.
May 4-7, 2003
25th Symposium on Biotechnology for Fuels and
Chemicals in Breckenridge, Colorado. For more
information, visit
http://www.nrel.gov/biotech_symposium/
May 18-21, 2003
9th
National Clean Cities Conference and Exposition in
Palm Springs, CA. For more information, call (303)
275-4317.
June
11-13, 2003
EPAC’s 13th Annual Ethanol Conference in Big
Sky, MT. For more information, email
shirley@ethanolmt.org.
June
16-19, 2003
BBI International’s International Fuel Ethanol Workshop
and Trade Show at the Sioux Falls Convention Center in
Sioux Falls, SD. For more information, visit
www.bbiethanol.com or email
conferences@bbiethanol.com.
August 17-24, 2003
Energy 2003 Workshop and Exposition in Orlando, FL.
Sponsored by the U.S. Department of Energy, Federal Energy
Management Program and co-sponsored by the U.S. Department
of Defense and the U.S. General Services Administration.
Visit
www.energy2003.ee.doe.gov or call 1-800-395-8574 for
more information.
September 21-23,2003
The
US Refining and Automotive Industries 2003 and Beyond -
Coming Together of Energy, Environmental & Economic Issues
in Washington, DC at the Hyatt Regency on Capitol Hill.
For more information, visit
call 1-800-872-3835.
CONTACT US. . .
Please feel free to e-mail your story suggestions,
comments, corrections or clarifications to us at
info@e85fuel.com or
call us toll free at 877-485-8595.
Phillip J. Lampert, Executive Director
info@e85.com
Michelle Saab, Director of Communications
info@e85.com
Randa Barker, Director of Administration
info@e85.com
You may view this FYI online at
http://www.e85fuel.com/news/index.htm
NEVC promotes the use of 85
percent ethanol as a renewable form of alternative
transportation fuel while enhancing agricultural
profitability, advancing environmental stewardship and
promoting national energy independence. |
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