Biofuels Digest

Researchers are indicating that E85 can achieve the same or better fuel economy than conventional gasoline with cars featuring high compression engine (between 11 and 14:1), a $32 spark plug upgrade, a $55 change in air filters and a fuel filter replacement.  “Believe it or not, high-compression engines of the late ’60s, with compression ratios up to 12.5:1, had higher thermal efficiencies that many of today’s engines,” says tprmag.com.
Compressions were lowered in the late 1960s when lead was removed from gasooline because 87-93 octane fuels cannot handle higher compressions , but 105-octane rated ethanol achieves its best results at 60s style compression ratios. Aside from wasting up to 20% in fuel costs for drivers, reduced fuel economy is one of the primary barriers to entry for E85.

Sean Hannity, Hannity & Colmes (FOX News):  “But the fact is, Al Gore has a financial stake in spreading global warming hysteria….Was Al Gore thinking about saving the planet or perhaps lining his pockets?…Now that the wheels are coming off of Al Gore’s global warming bandwagon, well, even some of his loyal supporters may have to make a choice, “Should I follow Al Gore’s half-baked notion to save the planet or feed my family? The answer should be obvious.”

Rep. Jane Harman (D-CA): “Our enthusiasm for corn ethanol deserves a second look. That’s all I’m saying, a second look.”

In Spain, the CEO of Abengoa said that its Salamanca ethanol plant could remain closed “Frankly, forever,” unless Spain moves to implement the EU 5.75 percent biofuels mandate.

In California. Gevo announced that Burill & Co and Malaysian Life Sciences Capital Fund have joined a $17 million third round of financing that closed this week, joining Vinod Khosla’s Khosla Ventures and Richard Branson’s Virgin Green Fund as investors. The company uses synthetic biology to produce advanced biofuels such as butanol from cellulosic biomass.

Like competitors LS9, Amyris and OPX Biotechnologies, the company is betting that its designer microorganisms and enzymes will allow it to significantly reduce the cost of cellulosic production. Among the company’s projects is the development of alternative jet fuel for Branson’s Virgin Group.

In the Philippines, Eastern Renewables Fuels said it plans to expand cassava planting to 4500 hectares in 2008 to meet rising demand. The company ships its output to Guanxi province in China.

BioFuel (BIOF) and VeraSun Energy (VSE) reported quarterly results, with BIOF showing a $0.12 loss per share for overhead expenses and VSE declaring earnings of $0.08. Commenting on the resulots,, Raymond James analyst Pavel Molchanov said “The timetable for bringing online BioFuel’s two 115 MMgy plants, Wood River (Nebraska) and Fairmont (Minnesota), remains essentially unchanged … BioFuel shares continue to be valued well below its construction costs.”

In Pennsylvania, investigators concluded that a faulty maintenance program was responsible for the derailment and explosion of a Norfolk Southern ethanol train in New Brighton in 2006. 20 of 23 derailed cars leaked ethanol, causing a two-day wildfire. “Because Norfolk Southern did not have an adequate rail inspection and maintenance program, they put the public, crew and environment at risk,” a statement by Federal investigators said.

In Germany, our European correspondent reports that the Agricultural and Economic Cooperation and Development ministries are at war over biofuels. The state secretary for Agriculture, while conceding a link between ethanol production and corn prices, is cautioning against over-reaction. Meanwhile, the ministry of Economic Cooperation and Development has called for a halt in using oilseeds and grains for biofuel.

In Iowa, Penford said that it has commenced sales of ethanol produced at its corn ethanol plant in Cedar Rapids. The new plant has a capacity of up to 45 Mgy.

In Iowa, Governor Chet Culver signed a bill that will provide grants of up to $100,000 for E85 pumps, and assistance for retailers who install ethanol and biodiesel. The legislation addresses a shortage of E85 pumps, despite Iowa’s status as the home of the ethanol industry.