Budget Trimmers Target Ethanol

  • CEO of Growth Energy, Tom Buis argues ... we spend plenty of money for overseas oil ... why not support home-grown ethanol?(Photo courtesy of the NREL)

President Obama’s visit to the Corn Belt is highlighting a tough debate about the future of corn-based ethanol used in our cars.

Transcript

President Obama’s visit to the Corn Belt is highlighting a tough debate about the future of corn-based ethanol used in our cars.

Congress is looking to cut the federal budget and one target is a key ethanol subsidy.

It’s a tax credit of about 4 and a half billion dollars, and it runs out by the end of the year.

Ethanol trade groups are fighting to extend that credit.

Tom Buis is CEO of Growth Energy.

He argues … we spend plenty of money for overseas oil … why not support home-grown ethanol?

“We create jobs, jobs that can’t be outsourced. I don’t know why we want to fund economies of foreign governments. We should be looking at spurring our own economic development here in the United States.”

Last year the Government Accountability Office questioned whether we need this particular ethanol tax credit, since the government requires gasoline refiners to blend-in billions of gallons of ethanol anyway.

For The Environment Report, I’m Shawn Allee.

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Corn Ethanol’s Footprint

  • Despite recent findings, political interests in Washington are working to extend corn ethanol subsidies set to expire at the end of this year.(Photo courtesy of AmandaLeighPanda CC-2.0)

For a long time, corn growers and the corn ethanol industry have claimed their fuel is low carbon. That is, it’s lower in the greenhouse gas emissions that contribute to global warming. A second study is out which disputes that claim.Lester Graham reports:

Transcript

For a long time, corn growers and the corn ethanol industry have claimed their fuel is low carbon. That is, it’s lower in the greenhouse gas emissions that contribute to global warming. Lester Graham reports… a second study is out which disputes that claim.

This study published in the journal BioScience also found corn is being used for ethanol instead of exported to other countries. Those other countries are plowing up grasslands and rainforests to plant corn for food. Less rainforest means less CO2 is being taken up by plants.

Thomas Hertel is a researcher at Purdue and lead author of the new study.

He finds ethanol from corn is not a low-carbon fuel when you include that indirect effect.

“It results in a figure which [is] not significantly lower than emissions associated with gasoline.”

But, political interests in Washington are working to extend corn ethanol subsidies which are set to expire at the end of this year.

For The Environment Report, I’m Lester Graham.

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No Tax Credit for Biomass

  • Biomass power is produced from organic waste such as wood chips or grass. (Photo courtesy of the National Renewable Energy Laboratory)

When Congress approved production
tax credits for renewable energy,
not every industry got the same
treatment. Lester Graham reports
biomass power is not getting the
subsidies that other alternative
energy sources get:

Transcript

When Congress approved production
tax credits for renewable energy,
not every industry got the same
treatment. Lester Graham reports
biomass power is not getting the
subsidies that other alternative
energy sources get:

Biomass power – produced from organic waste such as wood chips, grass or stuff that would otherwise just be thrown away – got half the tax credit that wind and solar did. And, instead of the tax credit lasting ten years like the other renewable energy sectors, biomass power got five years.

Bob Cleaves is the president of the Biomass Power Association. He says that tax credit for biomass is now gone.

“And our industry, frankly, is in crisis at the moment because Congress has let expire existing production tax credits we were only given five years for and if those are not brought back to life, then I’m afraid we’re not going to be growing the baseline, we’re going to be losing the baseline.”

Cleaves says without the tax credit, some states will be at a disadvantage in meeting the federal government’s requirments for more electricity to come from renewable energy.

For The Environment Report, I’m Lester Graham.

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Biofuels in Europe: Part 3

  • Jühnde’s biomass power plant runs 24/7 and gets fed manure and grains every day. (Photo by Sadie Babits)

People fed up with hearing
about an energy crisis talk
about going off the grid.
In the US, the solution is
to install solar panels on
your roof or put up a wind
turbine. But a village in
Germany has taken a different
approach. In the final part
of our three-part series on
biofuels in Europe, Sadie
Babits explains:

Transcript

People fed up with hearing
about an energy crisis talk
about going off the grid.
In the US, the solution is
to install solar panels on
your roof or put up a wind
turbine. But a village in
Germany has taken a different
approach. In the final part
of our three-part series on
biofuels in Europe, Sadie
Babits explains:

The village of Juhnde sits between rolling farmland and woods. The first buildings went up more than a thousand years ago. It looks like a lot of German villages – narrow streets, terra cotta roofs, and a towering church steeple. But talk to anyone here and they’ll tell you Juhnde is no ordinary town. It’s the first community in Germany to be powered and heated by cow manure and grain.

“This is the biogas power station on this side.“

That’s Gerd Paffenholz. He’s lived here in Juhnde for 20 years. He volunteers to show visitors, like me, the village’s bio-energy plant.

“This is the wood heating system and what you don’t see is the network that deliver the hot water in the ground.”

Paffenholz stands on top of an underground storage tank. The liquid manure in here gets pumped over to a massive green tank. That’s the anerobic digester. There, micro-organisms have a hay day eating manure and grains supplied by farmers in Juhnde. The bacteria create biogas, which then gets combusted into heat and electricity. It’s pretty silent outside the power station but open the door…

(engine sound)

That’s the sound of 700 kilowatts of power being generated. The electricity gets sent to the public network. It provides this village of 750 people with renewable power. There’s an added bonus – energy that’s normally lost while making biogas gets captured and is used to heat water. That hot water gets delivered through a series of underground pipes to heat most of the homes in Juhnde.

The village’s bioenergy plant went live five years ago. The price tag? Nearly 8 million dollars. The money came through a government grant and from residents who each ponied up thousands of dollars to join the plant cooperative. The village has also cut its greenhouse gas emissions in half already meeting targets set by the European Union for 2050.

“It shows you what some wise investments and collective thinking can make happen.”

That’s Jim McMillan. He researches biofuels at the National Renewable Energy Laboratory in Boulder, Colorado. He says Juhnde has created an attractive model that could work in the Northern US and Canada where people are more remote and winters are long and hard.

“It’s a good model but Europe, I mean, they’re built out much more than we are and they are doing a lot more in building. They’re density of building, the size of their square foot of their homes are much more right size and so these solutions are easier to implement there than they are here I mean we have a lot more big homes that require a lot more heat.”

Our attitudes are different too. It took several years to get Juhnde’s residents to buy into the idea of going off the grid but now most everyone is on board. Here in the U.S. we’re a lot more individualistic. But McMillan still sees a lot of promise in what Juhnde accomplished.

“So one village is a good example but we need to apply it across the board.”


Other villages in Germany are building bio energy plants. In the U.S. a few towns are attempting parts of Juhnde’s efforts. Reynolds, Indiana replaced the town’s vehicle fleet with cars and trucks that run on bio fuel. It’s now working with a company to turn algae into power. And in Grand Marais, Minnesota, they want to build a central heating system for the town that burns wood chips from the local saw mill.

For The Environment Report, I’m Sadie Babits.

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Biofuels in Europe: Part 2

  • Erhard Thäle and his wife grow organic crops like corn, peas and rye in these fields. They’ve lost money the last three years. Thäle know wants to sell his crops for energy. (Photo by Sadie Babits)

Farmers are finding they can
make more money selling crops
for energy than for food. A third
of all corn grown in the US gets
turned into ethanol. It’s tough
to balance the need for energy
and food when millions around
the world die from starvation each
year. Still, farmers are reconsidering
their roles – including in Germany.
In the second part of our three-part
series on biofuels in Europe, Sadie
Babits meets with one German
farmer who wants to make the switch
and become an energy farmer:

Transcript

Farmers are finding they can
make more money selling crops
for energy than for food. A third
of all corn grown in the US gets
turned into ethanol. It’s tough
to balance the need for energy
and food when millions around
the world die from starvation each
year. Still, farmers are reconsidering
their roles – including in Germany.
In the second part of our three-part
series on biofuels in Europe, Sadie
Babits meets with one German
farmer who wants to make the switch
and become an energy farmer:

Erhard Thale jokes a lot about being an organic farmer. It’s about all he can do.

“He has like his corn harvest from two years ago is still lying down on his farm so it’s not sold on the market.”

It’s hard to imagine. We’re outside Ludwigsfelde not too far from Berlin. Thale’s land looks green and healthy – not bad for late fall. But looks can be deceiving. Thale says he’s lost money for the past three years. He blames his land and a volatile world market.

“Then My wife comes and asks, ‘where do we go from here? Piggybank is empty. Money gone.’”

Thale says he can make more money selling his organic corn and rye for energy instead of food. He’s not joking around. There’s a growing movement in Germany to get farmers like Thale to set some of their land aside to grow grains just for energy. There are now areas throughout the country developing so called “bio-energy regions.” The idea is that a community like Ludwigsfelde would produce its energy locally.

Farmers like Thale would sell their grains and manure to a regional bio-energy power plant. Those materials would get turned into green energy. The 20,000 residents who live here wouldn’t have to rely on fossil fuels and they’d cut down on greenhouse gas emissions. Sounds promising. But Thale says he’d build his own plant if he had three million dollars. Then he could keep all the profits from selling energy.

“He needs an uncle in the U.S. with two million euros.” (laughter)

Other farmers, though, are cashing in, finding money in, well, poop.

(sound of milking machine)

A cow chews her cud as an automatic machine does the milking. This milking parlor is part of an agricultural training center here in west central Germany. This is the greenest farm I’ve been on. There’s a bio-energy power plant. Wind turbines and solar arrays.

Klaus Wagner runs the center. He says this cow’s manure is more valuable than the milk.

“That can’t be.”

Wagner sees a growing rivalry between dairy farmers who want to sell milk and those who want to sell manure for biogas.

“I guess that the milk and energy production on the other side belongs together. And those farmers who built 3-4 years ago biogas plant they earn real money now. The biogas plant substitutes the milking production.”

It really comes down to a question of sustainability. How much land here in Germany and, for that matter, the U.S. should be set aside for making energy? It’s not an easy answer. In the long run, if farmers grow grains for energy instead of food, that will impact the food supply and eventually what we pay at the grocery store.

For The Environment Report, I’m Sadie Babits.

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Biofuels in Europe: Part 1

  • The National Renewable Energy Laboratory's cellulosic ethanol plant. (Photo courtesy of the National Renewable Energy Laboratory)

The US government is spending
millions of dollars to build bio-energy
plants. They’ll turn everything from
wood chips to algae into energy. But
these facilities are years behind what
they are already doing in Europe –
especially in Germany. In the first
part of our three-part series on biofuels
in Europe, Sadie Babits takes us to one
German plant that makes green energy
on a massive scale:

Transcript

The US government is spending
millions of dollars to build bio-energy
plants. They’ll turn everything from
wood chips to algae into energy. But
these facilities are years behind what
they are already doing in Europe –
especially in Germany. In the first
part of our three-part series on biofuels
in Europe, Sadie Babits takes us to one
German plant that makes green energy
on a massive scale:

We’re in Eastern Germany where crews work on what looks like brew vats.

(construction sound)

These monster tanks remind me of vats for brewing beer, except these vats will brew energy from fermenting rye, manure and bacteria.

“Basically, we’re standing here in front of the biogas and bio fertilizer production area. The big fermenter is for the biogas production.”

Oliver Lutke is our tour guide. He’s really a chemical engineer for Verbio. The company is one of Germany’s largest commercial producers of biofuels. Lutke’s been involved in turning this ethanol facility into a plant that makes ethanol and biogas. That’s methane.

“We convert everything into energy by using biological processes. This combination biogas and bioethanol production plant isn’t existing in the world.”

That’s what Verbio claims anyway. The company buys grain from some four-thousand farmers in the region. The grain gets turned into biogas and ethanol. Verbio then turns the minerals from making these biofuels into fertilizer.
That goes back to the farmers for their crops.

“We’re closing the loop to the farmer converting all the carbon to energy and the minerals going back to the farmers as fertilizer which is growing the plants used to extract the energy.”

Lutke says the company has the technology to make this industrial sized plant profitable. That baffles skeptics because it costs a lot to make green energy. You have to buy the grain. And the actual process of turning that grain into fuel can be really inefficient. By the time you’ve made one gallon of biofuel, that gallon of oil is cheaper.

Jan Liebetrau isn’t convinced Verbio has the answer. He researches bioenergy and its potential in Germany.

“If you put lots of energy into the system and you get bioethanol you’re putting more energy in than you get out.”

So making bio ethanol costs energy, which defeats the whole purpose of producing it in the first place. Lutke doesn’t see it that way. He says Verbio has the technology to make biofuels without losing energy. And because the company’s process is more efficient, Lutke says they’ve cut down on greenhouse gas emissions.

“We emit 200,000 tons and the plants we are using will eat off 180,000 tons and that’s a closed cycle.”

It’s not perfect, but there’s less greenhouse gas being released than, say, from an oil refinery. Lutke is convinced bio energy will play a big role in cutting greenhouse gas emissions.

Germany, and Europe for that matter, have become leaders on this. Germany wants to be the first industrialized nation to be powered entirely by renewable energy – a goal Germany could reach by 2050, well ahead of the U.S.

For The Environment Report, I’m Sadie Babits.

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Squeezing More Oil Out of Soybeans

  • Recently, scientists completed a big-picture map of soy's basic genetic make-up. (Photo courtesy of the USDA)

Bio-diesel is supposed to make
big-rigs and trucks run cleaner.
But to make enough biodiesel on
the cheap, we’ll need to get more
oil out of soybeans. Shawn Allee says we could be one step
closer to fixing that:

Transcript

Bio-diesel is supposed to make
big-rigs and trucks run cleaner.
But to make enough biodiesel on
the cheap, we’ll need to get more
oil out of soybeans. Shawn Allee says we could be one step
closer to fixing that:

Tom Clemente is a kind of true-believer in biodiesel. He studies plant biology at the University of Nebraska. Clemente says the problem is, we use pricey soy-bean oil to make biodiesel.

“The downside is there’s just not enough of the oil to really make a dent on petroleum.”

Clemente figures scientists can manipulate genes inside soy beans to boost oil content, but no one knew exactly where the genes are. Recently, though, scientists completed a big-picture map of soy’s basic genetic make-up. Clemente hopes that’ll speed up development of oily soy beans – just for biodiesel.

“Really getting a bio-based sustainable fuel from some sort of cropping system, the production’s going to have be really up there.”

Clemente hopes we get enough biodiesel to clean up the nation’s dirtiest vehicles, such as construction equipment and city buses.

For The Environment Report, I’m Shawn Allee.

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New White House Energy Plan

The White House is pushing
a new clean energy plan as
a way to deal with reducing
greenhouse gases. Mark Brush
reports this new plan might
help future climate legislation:

Transcript

The White House is pushing
a new clean energy plan as
a way to deal with reducing
greenhouse gases. Mark Brush
reports this new plan might
help future climate legislation:

The White House says this new energy plan is all about green jobs. There’s more money for so-called clean coal, and for biofuels, like ethanol.

The government had limited using corn for ethanol. The thinking was using food to make fuel was probably not such a great idea.

But the industry has not been able to move away from corn ethanol as quickly as hoped. So now the Administration is saying, corn ethanol can be okay – if the refineries are more efficient.

Lisa Jackson is the Administrator of the Environmental Protection Agency.

“So this really unlocks the door for advanced biofuel producers, including advanced corn ethanol producers, to make investments and create jobs.”

Allowing more corn to be used for ethanol and investing in new technologies to clean up coal could win the White House some support if and when a climate change bill comes up for a vote.

For The Environment Report, I’m Mark Brush.

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Ethanol Goes to Court in Cali

  • California regulators want car fuels to come from sources that create fewer greenhouse gas emissions. That means corn-based ethanol will soon get a kind of penalty in California's fuel market. (Photo courtesy of the National Renewable Energy Laboratory)

The US government is steadily
increasing the amount of ethanol
used in our gasoline supply.
But Shawn Allee reports
that effort’s hit a roadblock
in the country’s largest gasoline
market:

Transcript

The US government is steadily
increasing the amount of ethanol
used in our gasoline supply.
But Shawn Allee reports
that effort’s hit a roadblock
in the country’s largest gasoline
market:

California regulators want car fuels to come from sources that create fewer greenhouse gas emissions. That means corn-based ethanol will soon get a kind of penalty in California’s fuel market.

Environmental groups like the Natural Resources Defense Council say ethanol should be at a disadvantage. The NRDC’s Roland Hwang says when we grow corn for fuel, farmers overseas plant more corn.

“Someone’s going to cut down a rain forest or convert pasture land or grass land to grow more food. Unfortunately, converting that land will lead to very dramatic increases in global warming pollution.”

Hwang wants the ethanol industry to stop using food crops for fuel.

Ethanol makers are not taking California’s rules sitting down, though; they’ve gone to court. They argue more lenient federal rules on ethanol should trump California’s.

For The Environment Report, I’m Shawn Allee.

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The Future of Corn

  • Scientists say this research could allow us to breed new corn varieties faster than ever before. (Photo courtesy of the Library of Congress)

You might think you know corn –
as in corn tortillas, corn-flakes,
corn-bread and so on. But do you
really know corn? Like, did you
know that our last harvest could
be one of our biggest, or that most
American corn is genetically modified?
Shawn Allee reports experts
want us to get re-acquainted with
our biggest crop because we need
to make huge decisions about its
future:

Transcript

You might think you know corn –
as in corn tortillas, corn-flakes,
corn-bread and so on. But do you
really know corn? Like, did you
know that our last harvest could
be one of our biggest, or that most
American corn is genetically modified?
Shawn Allee reports experts
want us to get re-acquainted with
our biggest crop because we need
to make huge decisions about its
future:

Virginia Walbot researches corn genetics at Stanford University, and recently she got news that didn’t just make her day – it kinda made her decade. Walbot says scientists just finished sequencing genes of an important corn genome.

“The genes are like the words in different languages and what you need is a dictionary that lists all those words, and that dictionary for us, is the genome sequence.“

Walbot says this research could allow us to breed new corn varieties faster than ever before. That’s a big deal because even though we benefit from corn we have now, we could make it better. For example, corn creates environmental problems – take corn fertilizer.

“Of course, adding fertilizer really boosts a lot of yield, but the downstream effects aren’t really great. So, there’s runoff from farms that contaminates the water supply. Making corn as efficient as possible and just giving enough fertilizer to sustain yields, those would be fantastic goals.“

Now, most corn researchers want to meet environmental goals, but there’s a question science alone can’t answer – what kinds of corn should we grow or improve?

Kinds of corn? Maybe you’re thinkin’ “corn chips” versus “popcorn” but there’re bigger differences. We eat sweet corn – most corn’s starchy industrial stuff.

“I think that’s one thing consumers get confused about. Today, only one percent of corn production goes into sweet corn.“

That’s Pam Johnson. She’s with the National Corn Growers Association. Johnson says about half our corn goes to animal feed, then we eat the meat or dairy products from that.

But a lot goes to industrial products, too. Ethanol uses more than a third of the corn in the American corn market.

Johnson says corn farmers want scientists to create specialty industrial corn that can fetch premium prices – like corn just for ethanol or corn just for renewable, corn-based plastic.

“You know, we’ve always said for a long time that anything that’s made from petroleum might be able to be made from a renewable and I think that’s an exciting thing to ponder as a corn grower.“

Johnson predicts new genetic science will also improve corn we eat directly, but is that likely to happen?

“I have my doubts.“

That’s Rainer Bussman. He’s with The Missouri Botanical Garden, and he studies how people use plants.

“Feeding people is less economic incentive than producing large amounts of corn for animal feed or biofuels, so I do have my doubts there.“

Bussman says it’s a shame food varieties of corn will get less attention from genetic research. He says he worries about food security. He figures if we grow more types of food corn we’ll be better protected from crop diseases.

It’s also a matter of taste, though. Bussman’s traveled the world and tasted corn we don’t grow here – like a blue kind in South America.

“They would call that maize murada which means purple corn and that is mostly used to produce a very refreshing, sweet beverage, so you get this get this deeply purple, sugary drink. It’s all natural, no sugar added.“

Bussman says Native Americans and the earliest settlers produced hundreds of varieties of corn for all kinds of food dishes – corn for just pudding, just bread, just porridge, and so on. They created this food diversity without modern genetic science, but we do have it.

Bussman asks why should our science just improve animal feed, ethanol, and bio-plastic? Why not make food our priority, too?

For The Environment Report, I’m Shawn Allee.

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