Ethanol Producers and Consumers


Mike Allen, left, and Shirley Ball, right, both of EPAC, team together with Phil Lambert of the National Vehicle Coalition to promote and educate the public about Ethanol and E-85 fuel.	Shirley Ball, Executive Director of EPAC (Ethanol Producers And Consumers), visits with Brian Jennings, Executive Director of ACE (American Coalition for Ethanol), at a recent Ethanol conference.	Patsy Reimche, right, of the EPAC office, visits about Ethanol with a reporter from the Western Livestock Reporter at a recent trade show.

2005 Montana Legislative Session
. . . by Mike Allen

It is early in the session and things are still in the wings and somewhat unsettled. The house is just beginning to get its leadership and overall agenda in motion after a long, strange and contentious battle over leadership.

But Ethanol is moving forward.

The Schweitzer administration has been in favor of, and campaigned on, the merits of Ethanol to all of Montana. Senator Jerry Black has been a supporter of Ethanol ever since his first term in the Senate in 2003. Support for renewable fuels, and more specifically, Ethanol is openly talked about with the administration and the elected bodies.

Help us! Call your State Senator or Representative and let him or her know how important Ethanol is to you and the rest of the folks in your area. Let your elected official know that a renewable fuel extender is all that you will accept in your gasoline from here on out. Let them know that using Montana grain for local use and export is what will keep our state strong.

Some of the proposed legislation has yet be named or numbered. But watch for them. If you can access the internet, please go to www.laws.state.mt.us. That will take you to the Montana Legislature page. From there, you can find out what is going on, who to talk to and all about any of the bills proposed.

EPAC will be contacting you! Senator Black's legislation adding Ethanol to gasoline to improve the gasoline standard is sure to get some heat. We already know that the Montana Petroleum Marketers and Convenience Store Association and the Petroleum Association of Montana are in opposition to this legislation. We will need your help to contact any and all lawmakers. As a Montana voter, you contacting your elected official is very important. We need all of the Senators' and Representative's votes on Ethanol issues. Every Vote Counts!

Thank-you for your support of Ethanol and EPAC. We will soon be contacting EPAC members asking you to send a card or letter, an e-mail or a phone call, to your representative or senator. Your voice is important and can make a difference.

Let us make Montana the next state to guarantee that every gallon of gasoline has added to it a clean burning, agriculturally produced product called Ethanol.

December caps: Record year for Ethanol Industry Growth
. . . from the RFA newsletter

2004 will go into the history books as the largest expansion in Ethanol industry history. Twelve Ethanol plants began construction in 2004. Likewise, 12 Ethanol plants began production. Combined with several expansions, over 500 million gallons of annual Ethanol production capacity was brought on line.

Utica Energy Doubles Plant

Utica Energy, LLC recently completed a 24 million gallon per year expansion to its Ethanol plant near Oshkosh, Wisconsin. The plant will now process over 16 million bushels of corn into 48 million gallons of Ethanol and 200,000 tons of wet distillers grains annually.

Golden Grain Begins Production

Golden Grain Energy, LLC recently began production at its Ethanol plant near Mason City, Iowa. The plant will process over 15 million bushels of corn into 40 million gallons of Ethanol and 120,000 tons of distillers grains annually.

"It took us three years to turn this idea into reality," said Golden Grain Energy President Walter Wendland. "Now our investors can participate in value-added agriculture; our community will benefit from increased economic activity, and our area farmers can benefit from increased demand for corn. This is a real win-win situation all the way around. With high gasoline prices it is a great time to be in the Ethanol business."

Lincolnway Energy Begins Construction

Lincolnway Energy, LLC recently began construction at its Ethanol plant near Nevada, Iowa. Once completed, the plant will process over

18 million bushels of corn into 50 million gallons of Ethanol and 150,000 tons of distillers grains annually. The plant will use coal to fire its boilers.

"Lincolnway Energy is well on the way of putting together an exceptional Ethanol project," said Lincolnway Energy, LLC President Bill Couser. "Our company was named after Lincoln Highway. Lincoln Highway is the first U.S. thoroughfare opened from coast to coast. Constructed through the heartland, many Americans who made the journey on this historical artery of our country discovered central Iowa home to bountiful crops; and our Lincolnway Energy vision is to create a facility that will continue to demonstrate that America's heartland will provide for the country; provisions of food and now energy."

Hawkeye Renewables Begins Production

Hawkeye Renewables, LLC recently began production at its Ethanol plant near Iowa Falls, Iowa. The plant will process over 16 million bushels of corn into 45 million gallons of Ethanol and 150,000 tons of distillers grains annually.

Hawkeye Renewables President J.D. Schlieman said, "The quality of our local workforce is truly outstanding and we're excited to be able to receive grain and have the plant at full production during the completion of harvest."

Illinois River Energy Begins Construction

Illinois River Energy, LLC recently began construction on its Ethanol plant near Rochelle, Illinois. The plant will process over 18 million bushels of corn into 50 million gallons of Ethanol and 150,000 tons of distillers grains annually. The plant will also capture and sell CO2 from the fermentation process.

Panhandle Energies Begins Construction

Panhandle Energies of Dumas, LP has begun construction on its Ethanol plant near Dumas, Texas. Once completed, the plant will process over 12 million bushels of corn into more than 30 million gallons of Ethanol and 90,000 tons of distillers grains annually.

The plant will employ 36 people with an annual payroll of $1.3 million.

"Fuel Ethanol is a product whose time has come," stated Texas State Representative David Swinford of Dumas. "It is good for farmers, good for the environment, and lessens our dependence on foreign oil."

Bushmills Ethanol Begins Construction

Bushmills Ethanol, Inc. recently began construction on its Ethanol plant near Atwater, Minnesota. The plant will process over 14 million bushels of corn into 40 million gallons of Ethanol and 120,000 tons of distillers grains annually.

"Not only is this a great day for Bushmills Ethanol, it's a great day for our local, state and national economy. It will create jobs, boost the rural economy, and help lessen our dependence on foreign oil. Along with our partners in the Renewable Fuels Association, we look forward to the continued success of the Ethanol industry," stated Andy Quinn, President of Bushmills Ethanol.

Midwest Renewable Energy Begins Production

Midwest Renewable Energy, LLC (MRE) recently began production at its Ethanol plant near Sutherland, Nebraska. MRE will process 5.5 million bushels of corn into 15 million gallons of Ethanol and 100,000 tons of wet distillers grains annually. The plant employs 33 people.

ACE Ethanol Completes Expansion

ACE Ethanol, LLC recently completed a 15 million gallon per year expansion to its Ethanol plant near Stanley, Wisconsin. The plant will process over 12 million bushels of corn into more than 30 million gallons of Ethanol and 90,000 tons of distillers grains annually.

Bob Sather, chairman of ACE Ethanol's Board of Directors, told the crowd, "ACE Ethanol employees and all the contractors worked very hard to maintain production even as the expansion was on-going. Everyone can take pride in a job well done. ACE Ethanol is now situated to take greater advantage of the record demand for Ethanol from coast-to-coast."

Midwest Grain Processors Begins Expansion

Midwest Grain Processors recently began a 45 million gallon per year expansion to its Ethanol plant near Lakota, Iowa. When the expansion is completed in December of 2005, the plant will process over 33 million bushels of corn into more than 95 million gallons of Ethanol and 285,000 tons of distillers grains annually. The plant will continue to produce 50 million gallons of Ethanol annually during the expansion.

Dave Nelson, chairman of Midwest Grain Processors' Board of Directors, stated, "The plant was built with expansion in mind. The decision to expand now is based on strong Ethanol demand and good margins. Given the tremendous growth in the industry, a company needs to grow to remain competitive with the top tier of Ethanol producers. Our slogan is 'Ethanol and More,' but today the right investment is in more Ethanol." Lurgi PSI, of Memphis, Tennessee, is providing a full "turnkey" expansion for the plant including engineering, procurement and construction.

Currently, 83 Ethanol plants nationwide have the capacity to produce nearly 3.6 billion gallons annually. There are 16 Ethanol plants under construction with a combined annual capacity of over 700 million gallons.

Idaho's E85 Fueling Station

Boise, ID - Governor Dirk Kempthorne and Stinker Stations announced the opening today of Idaho's first E85 fueling station in Boise. The announcement was made with the National Ethanol Vehicle Coalition (NEVC) and General Motors Corporation at the Stinker Station, 2323 West Main Street, in Boise. Stinker also announced plans to expand its number of E85 stations as demand grows throughout Idaho.

As part of the grand opening, drivers of flexible fuel vehicles (FFVs) capable of running on E85 were encouraged to fill their tanks for 85 cents a gallon.

"Everyone needs to do their part to reduce America's dependence on imported oil and energy," said Idaho Governor Dirk Kempthorne. "One of the best ways is to use alternative fuels. I'm pleased to announce that I will be driving a state-owned Chevrolet Suburban that utilizes E85 fuel. I also want to congratulate Stinker Stations and General Motors for making this technology available to more Idahoans."

"Stinker has blended its gasoline with 10 percent Ethanol for over 20 years," said Charley Jones, president, Stinker Stations. "Stinker blends with Ethanol because it burns cleaner and improves vehicle performance with higher octane and reduces tailpipe emissions. Ethanol also provides the additional benefits of supporting agriculture and reducing dependence on overseas oil imports. Stinker is proud to offer E85 fuel to our customers in Idaho."

Idaho produces 1.8 million gallons of Ethanol annually by one Ethanol plant that uses potatoes as a feedstock. Idaho is the largest potato-producing state in the U.S. and produced 13.8 billion pounds in 2003. Four additional Ethanol plants in Idaho are in various stages of development.

"E85 is a home-grown, clean-burning, alternative transportation fuel," said Phil Lampert, executive director for the NEVC. "Today, Ethanol made from potatoes, corn, wheat, sorghum and other crops, reduces petroleum fuel use by 98,000 barrels per day, provides thousands of jobs, and has become a $10 billion per-year industry."

In the future, when it is made from biomass such as corn and wheat stalks and forestry waste, Ethanol has the potential to virtually eliminate automotive greenhouse gas emissions.

GM and the nonprofit NEVC are leading a public awareness effort part of a two-year partnership between the two organizations that focuses on increasing E85 use in GM FFVs, which may use either E85 or gasoline or any combination of the two.

"General Motors is proud to celebrate the opening of Idaho's first E85 fueling station, and we encourage consumers to try this alternative fuel and to take advantage of the benefits," said Gary Herwick, director of alternative fuels for General Motors. "We support the use of E85 because it's a renewable, alternative fuel that relies on domestic production."

GM produces more than a third of the approximately 4 million E85 flexible fuel vehicles on American roads. All 2002 and newer Chevrolet Suburban and GMC Yukon XL full-size SUVs equipped with the Vortec 5300 engine are E85-capable. E85 capability also is available as an option on the Chevrolet Tahoe and GMC Yukon full-size SUVs, and the Chevrolet Silverado and GMC Sierra full-size pickup trucks. New E85-capable GM vehicles for the 2005 model year include the Chevrolet Avalanche and Police Tahoe.

Biodiesel Progress Reflects Work of Women Pioneers
. . . from Biobased Initiative Newsletter

Five women recently drove from New York to San Francisco, stopping at various restaurants asking for used frying oil. The women used the left-over oil to fuel their vehicle for the cross-country trip. The women documented the journey in a film titled "Fat of the Land." An unrelated woman, Kimber Holmes, a Laytonville, CA resident, co-founded the BioFuel Station, a 1500 gallon fuel tanker. Ms. Holmes uses the tanker to make biodiesel deliveries to those in the agricultural area willing to use biofuels on their farms rather than traditional petroleum-based fuels. The BioFuel Station is planning to build a "fill and go" station where residents will be able to drive farm equipment up to filling pumps and fuel their vehicles with biodiesel.

ETHANOL: This Years "Buzz" Word at Parties?

Editorial - By Mike Allen

WOW! What did I know? I went to a house party in Helena the other night and all was good. There was some great food shrimp, brie cheese, hot wings, great chicken - and of course, cold drinks, and even in January, a cold beer or a martini (shaken! not stirred), tastes pretty darn fine.

The party was good. I knew lots of the folks there. The talk was casual. But then, a couple who were both born and raised in North Dakota asked me about yes, you guessed it, Ethanol. They knew that I was involved with Ethanol as a supporter. They had a few questions.

I was ready. I have supported Ethanol for over 15 years. I have been active with EPAC since the early 1990's. I enjoy talking with and gleaning information from the very knowledgeable and capable folks who speak at the annual EPAC conference and other meetings I attend. I know about Ethanol. Bring on the questions!

My friends asked about a new plant that was proposed for North Dakota. All of a sudden, it seemed like the whole room was listening. There was no outside chatter. No distant conversations. Everyone was listening. Why did these other folks care about a proposed plant in North Dakota? What is the big deal? But listening they were. Waiting to hear about what I had to say about Ethanol, its' future, its' benefits and potential plants in North Dakota. Hey, is this a good time for the old North Dakota joke as told by its Montana neighbor?

Well, I am not well versed and knowledgeable in Ethanol plant economics. I paused. I took a deep breath. I thought about the whole topic. Then it hit me. Why not do what every respected and knowledgeable person does in Helena while the legislature is in town: Change the subject! I knew that I couldn't just change the subject, but I could change the content of the Ethanol conversation to a part of Ethanol that I know: It's qualities and benefits.

And that, my friends, is exactly what I did. Thankfully it worked! I don't know a lot about Ethanol plants dynamics. I know quite a bit about Ethanol and how it can help. My daddy always said; "Stick to what you know, boy, and the world will treat you well". That bit of advice worked wonders here! I talked about how great Ethanol was. How it could help farmers, rural economic development, the improvements to the air, the displacement of fossil fuels, yada, yada, yada! It was great!

As I looked around the room, all were listening. They actually seemed to be learning something and even my old, jaded attorney buddy seemed to be catching on to the benefits of Ethanol.

To close, I have to say it was a great evening. The food was good. The company was excellent, and the conversation superb! The best part was, knowing that I made a difference in a few folks opinion as to how good Ethanol is and that the main stream media, if controlled by big oil, isn't doing us favors with there reporting, but renewably grown Ethanol can.

The other best part of the night? I had one more beer after my talk, smiled as I thought about the conversation and some of the comments, and knew that my designated driver would get me home safe.

New Technique in Ethanol Production

. . . from the Argus Leader

SIOUX FALLS, S.D. - A company that builds and manages Ethanol plants said it has developed a technology to eliminate a costly step in making Ethanol out of corn or other grains.

The technique patented by Broin Companies eliminates the "cooking" step in Ethanol production, a process that requires a lot of energy. The new method eventually could be licensed to plants across the nation and around the world, said Jeff Broin, the company's chief executive officer.

After three years of research in the company's lab in Sioux Falls, the technique is being used at Broin's plant in Scotland and at two other plants in the region.

Although no firm numbers have been released on expected cost savings, the benefits include a decrease in emissions, lower production costs, and an increase in protein content and quality of the byproduct that is used as a livestock feed.

"We just eliminated half of the Ethanol-production process. There's never been anything like it before," Broin said. "This may be the biggest breakthrough in starch conversion to Ethanol in more than 100 years."

Broin Companies will be rolling out the technique in several of its plants in the next two years, Broin said.

"So far, we've found no negatives but have found many positives," Broin said. "Everyone involved will win. This process, even in its infancy, holds so much potential. There could be a lot of improvements in its efficiency over time."

Broin Companies has built 19 ethanol plants and has five more under construction or development in five states.

Research And Development Projects: USDA and DOE announce up to $15 million in grants for Biomass

WASHINGTON, Dec. 21, 2004The U.S. Department of Agriculture and U.S. Department of Energy (DOE) today announced the availability of up to $15 million in grants to support President Bush's energy plan to develop renewable energy and expand the economic prospects and environmental benefits of biomass.

"Our nation can benefit greatly from the conversion of biomass into biobased products, fuels and energy," Agriculture Secretary Ann M. Veneman said. "Biomass use strengthens rural economies, decreases America's dependence on foreign energy supplies, reduces air and water pollution and reduces greenhouse gas emissions. These grants will help fund important research projects."

Through the Biomass Research and Development Initiative, these grants are available to eligible entities to carry out research, development and demonstrations on biobased products, bioenergy, biofuels, biopower and related processes.

The USDA Natural Resources Conservation Service, on behalf of USDA and DOE, is requesting proposals for biomass research, development and demonstration projects. The solicitation package (USDA-GRANTS-67-3A75-5-22) was posted on the federal funding opportunities website at http://www.Fedgrants.gov on Dec. 17, 2004, and in more detail at http://www.bioproducts-bioenergy.gov.

Pre-applications for this joint solicitation must be submitted by Feb. 15, 2005, to USDA-NRCS, Management Services Division, P.O. Box 2890, Washington DC 20013-2890, Attn: Sheila Leonard. Approximately 400 applications were submitted for this solicitation in both fiscal years 2003 and 2004.

Eligible applicants include private sector entities, institutions of higher education, nonprofit organizations, national laboratories, federal and state research agencies and consortiums consisting of two or more of these entities. Grants will be awarded competitively based on technical merit and program priorities identified in the solicitation package.

You think a gallon of gas is expensive?

Diet Snapple 16 oz. $1.29 $10.32 per gallon

Lipton Ice Tea 16 oz. $1.19 9.52 per gallon

Gatorade 20 oz. $1.59 10.17 per gallon

Brake Fluid 12 oz. $3.15 33.60 per gallon

Vick's Nyquil 6 oz. $8.35 178.13 per gallon

Pepto Bismol 4 oz. $3.85 123.20 per gallon

and this is the real kicker

Evian Water 9 oz. $1.49 $21.19 per gallon

$21.19 for water and the buyers don't even know the source!! So, the next time you're at the pump, be glad your car doesn't run on water, or Gatorade or (God forbid), Pepto Bismol or Nyquil. Just a little humor to help ease the pain of your next trip to the pump.

Corn group drives Ethanol legislation: North Dakota growers backing 10 percent blend requirement

. . . by James MacPherson (AP)

BISMARCK, ND A North Dakota corn grower group says it will push legislation to require a 10 percent blend of Ethanol in all gasoline except premium.

Jocie Iszler, Executive Director of the North Dakota Corn Growers Association, says the mandate would increase the amount of Ethanol-blended gasoline used in the state from about 12 million gallons per year to 40 million gallons.

Iszler says the legislation was pitched to North Dakota Governor John Hoeven December 1st.

Legislation to mandate Ethanol use in North Dakota has failed twice since 2001, Iszler says.

"The climate is different now with the war in Iraq," she says. "Gas prices are higher, and people are feeling the need to reduce our dependency on foreign oil."

Lance Gaebe, a farm policy adviser to Hoeven, says the governor supports boosting production and consumption of Ethanol and other renewable fuels but does not want to make it compulsory.

"We have the same goals to increase the market share of Ethanol, but we want to see it as demand-pull, rather than a mandate-push," Gaebe says. "We want people to want to buy the product instead of forcing them to buy it."

The state has subsidized cheaper Ethanol-blended gas and has an ongoing promotion for its use, Gaebe says. About $500,000 is available during the next three years to promote "GoE" North Dakota's brand of the fuel made from corn.

Iszler and Gaebe say 30 percent of the gasoline produced in North Dakota contains 10 percent Ethanol, compared with only 11 percent five years ago. Gaebe says the goal is to increase the amount to 50 percent by the end of next year.

Wimbledon, N.D., farmer Mike Clemens, president of the corn growers group, says the proposed legislation is "a step in the right direction in getting the fuel in the market."

Increasing use of the cleaner-burning fuel will help corn producers, the environment and the consumer, Iszler and Clemens say.

Ethanol-blended gasoline can be cheaper at the pump than straight gasoline, Iszler says. And growers typically can fetch up to 20 cents per bushel more for corn sold for Ethanol production, Clemens says.

"With oil at $50 a barrel and corn at rock-bottom prices, it sure looks like the stars are aligned for Ethanol," he says.

Minnesota, California, Connecticut, parts of New York and some big cities require cleaner-burning blends such as Ethanol, says Ron Lamberty, market development director for the American Coalition for Ethanol in Sioux Falls, South Dakota.

"In Minnesota, it was done to aggressively build Ethanol plants for economic development," he says.

Mandating the corn-based fuel in North Dakota likely would help spur Ethanol plant development in the state, he says.

"What holds up financing for some plants is that banks want to know where the fuel will be sold," Lamberty says.

North Carolina Grants Support Renewable Fuel Choices

. . . from the Biobased Initiative Newsletter

The North Carolina Alternative Fuel Incentive Project has distributed over $90,000 from its Energy Office in grant money to increase renewable transportation fuel use in local projects. Awarded projects include the following, amongst others: the Forsyth County Automotive Services Department plans to introduce approximately 30,000 gallons of B20 biodiesel into its motor fleet; and the Superior Oil Company will switch a diesel pump currently located at its Penn Mart station with a B20 pump. This will be North Carolina's fourth B20 pump. The North Carolina Zoological Park in Asheboro will also begin fueling its passenger trams and buses with B20. The project includes signage to inform zoo patrons that the vehicles operate on vegetable oil.

New Biofuels Paper Prepared By Montana DEQ

An important new paper about energy and biofuels has been prepared by the Montana Department of Environmental Quality.

Howard Haines and Jeff Blend are the authors of the paper titled "Economic Effects of Increased Ethanol Use in Montana". You can read the document by clicking on http://www.deq.state.mt.us/Energy/bioenergy/ethanolUseInMT.asp

Thanks to all who contributed to the paper.

Consumers can win with Ethanol
. . . by Johnna Miller, reprinted from The Prairie Star

Don't you just love paying more at the pump for gas? Okay, probably not, but what choice do you have, right?

Actually, there is a choice. It won't cut your fuel costs overnight, but it is one of the few ways consumers can improve their energy future. What is it? Renewable fuels like Ethanol.

Skeptics might assert that the positive buzz about renewable fuels is just political rhetoric or wishful thinking by farmers. Perhaps Mark Thomas can convince the doubting Thomases otherwise. He knows first hand that Ethanol can really make a difference for America's drivers. Thomas is an Ohio farmer. But he's also a five-time world champion funny car drag racer whose car runs on Ethanol.

"Our car can go from zero to 245 miles per hour in 5.7 seconds, has 3,000 horsepower and it's totally fueled from Ethanol which is made from corn, totally lubricated with corn oil," says Thomas, proudly describing about his bright green race car.

Of course, most people aren't toting their groceries home in anything quite that souped up. Still, Thomas insists Ethanol is a product all drivers can appreciate, no matter what's in their driveway.

"Just check your owner's manual," Thomas suggests. "Every major manufacturer in the world recommends Ethanol, the 10-percent blend you can buy at the pumps." He points out that with a 113 octane rating, Ethanol is the highest performance fuel on the market.

Higher performance is nice, but how does it relieve anyone from digging deeper into their wallets to may more and more at the pump? Well, everyone knows oil doesn't grow on trees. If it did the U.S. wouldn't have to import 62 percent of its petroleum needs. But the source for Ethanol does grow in farm fields. Producers can plant a new crop every year. No worries about limited supplies or the instability of nations half-way around the world.

Ethanol lessens our dependence on foreign oil. Used as an additive to make gasoline burn cleaner, this renewable fuel now displace 128,000 barrels of imported oil and other petroleum products every single day. The equation is simple. The more renewable fuels we use, the less oil we have to import.

With crude oil prices setting new records, it seems in everyone's best interest to support a domestic product, especially one made from crops you can plant anew every year. To ensure a brighter energy future, Thomas advises all vehicle owners: Go to gas stations. Demand Ethanol."

As Thomas and his five championships have shown, this renewable fuel is a winner.

Ethanol Production Good Economics
. . . by Lois Kerr, Roundup Ag Editor

In spite of the fact that the Makad Corporation has put plans to construct an Ethanol facility in Williston, North Dakota, on hold, Ethanol continues to generate interest both locally and nationally because of its potential as a renewal gasoline extender. The Glasgow, Montana, area plans to further investigate the possibility of building an Ethanol plant, and with high gasoline prices not likely to go away anytime soon, people in grain-growing areas across the country have begun to look at the economic feasibility of Ethanol production.

For this reason, Dick Iversen, assistant coordinator for the Eastern Plains Resource Council & Development (RC&D) office in Sidney, Montana, recently visited two Ethanol plants,one in Iowa and one in South Dakota, to investigate the economic opportunities that Ethanol production provides.

"We went to see what Ethanol is all about," Iversen remarks. "We visited a plant near Odebolt that produces 25 million gallons of Ethanol a year using 25,000 bushels of corn a day. We also visited a plant in Brookings, South Dakota, that produces 100 million gallons of Ethanol using 100,000 bushels of corn daily. Both plants say their cost of production is about $1.40 per gallon."

The plant in Odebolt, a farmer-owned cooperative built in 2001, produces not only Ethanol but also sells its own premium brand of nutrient-rich livestock feed, made from the Ethanol by-products. The by-products, fiber and protein, remain after processors remove the starch from the corn. The starch produces the Ethanol, while the fiber and protein by-products, called distillers grain, make excellent livestock feed.

"This plant sells wet distillers grain, which is fed right to cattle, and it also sells dried distillers grain," Iversen explains. "Distillers grain is a by-product from the Ethanol process that is just fiber and high protein with the starch removed."

Iversen expresses surprise at the vast number of spin-off jobs that accompany Ethanol production. "We saw new local truck businesses to haul grain to the plants and to haul the by-products from the plants," notes Iversen. "The high quality livestock feed the plants produce helped the start-up of chicken, turkey, pig and cattle operations nearby which have easy access to this high quality feed. Ethanol plants themselves also created new jobs in the area."

The Ethanol process includes milling, mashing, fermentation, distillation and evaporation to obtain the Ethanol and its by-products. Both plants Iversen visited used corn to produce Ethanol, but many people, including Iversen and Dr. Jerry Bergman, director of Montana State University's Eastern Agricultural Research Center (EARC) in Sidney, believe that with some modifications in the equipment or by using special varieties, small grains such as barley could work just as well in Ethanol production. Barley grows well in the MonDak and could supply an Ethanol plant in this region.

However, as Bergman points out, the use of barley or other small grains for Ethanol production has a few drawbacks. "Ethanol yield is not as high, and grain is more abrasive on the equipment," he explains. "It's more expensive to install stainless steel equipment that wouldn't be affected by the abrasiveness of the grain."

For this reason, the EARC has obtained a grant from the Montana Department of Commerce Research and Commercialization Board to research barley for Ethanol purposes. This includes development of hull-less or loose-hulled barley varieties. "The abrasiveness comes from the hull," Bergman points out. "We are working with North Dakota State University two-row barley breeder Dr. Jerry Franchowiak and have identified barley lines with reduced fiber and less hull. We are growing these varieties to analyze them for Ethanol production."

"With less hull or no hull, Ethanol yields should improve," continues Bergman. The distillers by-products should also be higher in protein and lower in fiber and have more value as livestock feed."

Both Iversen and Bergman agree that using barley for Ethanol production would benefit the MonDak region. "Barley is easy to grow here and fits right in with the rotation," Bergman points out. "Barley fits better than corn on dryland.

"We have all we need right here to develop Ethanol," Iversen says. "We have the grain, natural gas, electricity, rail lines, labor and the land. It's just a matter of when, not if, we see Ethanol production in the area. The economic benefits would be tremendous."

"Ethanol is a good thing," concludes Iversen. "It extends gasoline and it adds value to our raw product. Now we haul grain to an elevator, load it on trains, and never see it again. With an Ethanol plant, our money would stay here and be processed here several times over."

Doesn't Take Rocket Science to Use E85

Houston, TX - A ribbon cutting ceremony officially kicked off the opening of Houston's first E85 fueling facility on October 26, 2004 at 10 a.m. The new E85 tank and dispenser is located on NASA's Johnson Space Center (JSC) campus.

Attendees at the event included: William E. Gookin, Manager, Agency Transportation Programs, NASA Headquarters; Russel Smith, Texas Renewable Energy Industries Association; Mary Jo Rowan, Texas State Energy Conservation Office; Jason Salinas, Houston Clean Cities Coordinator; Don Thompson of the Environmental Quality Small Business and Environmental Assistance Division; Raymond Barron, Ernesto Martinez, Craig Staffan of the General Services Association; Ron Robb and Chase Garner of Sundance Fuels; Curtis Donaldson, Vice Chairman of National Ethanol Vehicle Coalition and CEO of Clean Fueling Technologies; and Bill Heffner, U.S. General Services Administration (GSA) Regional Director.

"The NEVC is excited about NASA's leadership," commented Donaldson. "We hope the Federal Government will follow NASA's lead in making E85 a more widely used fuel."

Installation of the 1,000-gallon, on-site, fuel-dispensing unit brings JSC into compliance with the Energy Policy Act of 1992 (EPAct) and Presidential Executive Order 13149. EPAct requires the acquisition of alternative fuel vehicles (AFVs) for federal fleets and Executive Order 13149 requires that federal fleets reduce their petroleum use 20 percent by 2005. JSC employees are now mandated to use E85 in the 25 flexible fuel vehicles in the GSA fleet assigned for employee use, if their official business takes them within a 50-mile radius of JSC.

"We applaud NASA's commitment," added Donaldson.

JSC is the second federal fleet in Texas to use E85, the first being a Department of Energy facility in Amarillo. They are now the fifth NASA center to add ethanol fueling capability. For a complete listing of public E85 fueling locations, visit www.E85Fuel.com.

Steps needed to build Ethanol plant

In the past couple of months, the EPAC office has received a number of inquiries about steps needed to build an Ethanol plant. An EPAC member provided the following list of very basic factors that need to be answered before an economic analysis can be done.

What size plant: 30-40 million gallons per year is considered minimal size today without some unique economic advantage.

Grain availability: How many bushels of each grain are available within 50 miles, 100 miles, 150 miles. Use historic production minus historic usage for corn, wheat and barley.

Grain Pricing: What is the historic local grain price for corn wheat and barley. What is the historic basis (difference between local price and Chicago price) for each grain.

Natural gas or coal availability: What is the most economical fuel. Gas takes a pipeline and coal needs expensive handling facilities. Calculate about 35,000 BTUs per gallon of Ethanol produced. Estimate delivered cost of each.

Power: Use 1kwh of electricity per gallon of Ethanol produced.

Site Issues: Site needs rail access, road access and availability of 3.5 gallons of water for each gallon of Ethanol produced.

Dried Distillers Grains(DDG) and Wet distillers Grains (WDG) market: DDG can be sold by rail but WDG should be used within 100 miles of the plant. DDG can be used for hogs, poultry and cattle, while WDG are used only for cattle. Determine the number of all livestock within 200 miles of the plant and the number of cattle within 100 miles of the plant. Check historic prices for DDG in the area.

Financing: There are many possible ownership and financing structures but most require about 30% to 50% equity. Ethanol plant costs decrease on a per gallon basis as plants get larger. Use $1.50/gal for a 20mgy plant, $1.42/gal. for a 30mgy plant, $1.31/gal for a 40mgy plant and $1.20/gal for a 50mgy plant. Add $5-$10 million for soft cost, such as initial operating costs, inventories and receivables.

EPAC Conference To Feature Trade Show

The EPAC Conference will feature a Trade Show.

If anyone is interested in having a display booth,please contact Mike Allen at 406-442-7703, or call the EPAC office at 406-785-3722.

2005 Calendar

January 29 - February 2 National Biodiesel Conference & Ft. Lauderdale, Florida Expo

Contact: National Biodiesel Board

Tel.: 800-841-5849

Email: expo2005@biodesel.org

Website: http://www.biodiesel.org

February 7 - 9 10th Annual National Ethanol Scottscale, Arizona Conference

Sponsored by the Renewable Fuels Association

Tel.: 202-289-3835

Website: http://www.ethanolrfa.org/

February 22 - 24 Western Petroleum Marketers Las Vegas, Nevada Assoication

Annual Meeting and Trade Show

June 12 - 14 15th Annual EPAC Ethanol Cody, Wyoming Conference

Tel.: 406-785-3722

Website: www.ethanolmt.org

June 28 - July 1 Fuel Ethanol Workshop and Expo

Kansas City, Missouri Tel.: 719-942-4353

Website: www.bbibiofuels.com

August 16 - 18 American Coalition for Ethanol Omaha, Nebraska (ACE) Annual Conference

Tel.: 605-334-3381

January 24 - 25 National Ethanol Vehicle Coalition

Miami, Florida Annual Meeting

EPAC (Ethanol Producers And Consumers) organized as a non-profit organization in 1991, with a thirteen person Board of Directors to oversee and guide activities. Membership includes individuals, businesses and organizations in over 26 states and 3 foreign countries.

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