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MON., NOV 12, 2007 - 11:16 PM
High soybean oil prices stop construction of Evansville biodiesel plant
MARV BALOUSEK
608-252-6135
mbalousek@madison.com
High soybean oil prices have halted construction of the North Prairie Productions biodiesel plant in Evansville, making the end product too expensive compared with the pump price for regular diesel.
The going rate for soybean oil, the raw material for biodiesel, is about 45 cents a pound or $3.60 a gallon, more than double the price when the plant was proposed, said John Sheehy of Sun Prairie, board chairman of North Prairie Productions.
He said biodiesel would have to sell for $4.50 a gallon to justify the current price of soybean oil. Regular diesel fuel was selling for $3.49 a gallon Monday in the Madison area, according to MadisonGasPrices.com. A gallon of soybean oil makes a gallon of biodiesel, Sheehy said.
The $42 million plant would have been the largest in the state, producing an estimated 45 million gallons of biodiesel a year. Biodiesel is a substitute for diesel fuel used by farm tractors and some trucks and cars.
Sheehy said if soybean oil prices go down or diesel fuel prices look like they're going up for an extended period, construction could resume, possibly as early as next spring.
"The biodiesel plants are struggling right now with these prices," he said. "We're in a better position because we aren't so far along that we have debt payments."
Sheehy said several Iowa biodiesel plants that rely on soybean oil also have suspended production due to the prices.
He said site preparation, footings, underground electrical work, roads and transformers have been completed at the Evansville plant. A storage building also has been erected.
Judy Ziewacz, director of the state Office of Energy Independence, said an emerging industry like biodiesel is bound to have stops and starts.
"It appears to be a prudent business decision on their part," she said. "We're still optimistic production will come online sometime in 2008."
Planning continues for an $85 million soybean crushing plant next to the proposed Evansville biodiesel facility. The crushing plant, which received a $4 million grant in the new state budget, would produce soybean oil for biodiesel and soybean meal for animal feed.
The halt to production of the biodiesel plant will have minimal impact on the crushing facility, which isn't slated to open for 18 months, said John Blaska, board chairman of Landmark Services Cooperative of Cottage Grove.
"It does not adversely affect our plans for the soybean crusher," he said.
If the construction delay for the biodiesel plant is long enough, he said, both plants could benefit by sharing engineering and other construction costs.
Blaska said the crushing plant is expected to process 2,000 to 2,400 tons of soybeans a day and wouldn't produce enough oil to supply all the needs of the planned biodiesel plant.
sstp making step from research and development to production and sales, new pr today.
You are still missing the point of the pr. Before Usse, agrimax was already in the biodiesel/blending business. Now with certification it is our bio dieself or biofuels being blended and sold to existing distribution channels...
- there should be a light going on in your head somewhere?
provided permits are in place, we are open for biz...
does it trade under the same symbol? No.
OT:profit alert
check the fishin hole for my last post.
Profit alert, check todays news for sstp. Their new revolutionary bio-fuels fuel passed ASTM certification and has previously been stockpiled for such a day.
We are now in the oil and gas business, with production and sales. More good news to hopefully be dropped in our laps over the next few months including
work in progress - announcing some sort of partnership or JV deal with a Texas Fortune 500 company
announced distribution for value added products
Baytown facility coming into production
progress on Dom. Rep. deal(s)
update on talks with Spain
announcement of future construction for multiple plant facilities.
Progress made over past four months phenomenol,our first plant in production and sales, a second soon to follow. It has been rumoured of a possible third location, not much of a trail to follow.
I guess someone has found a use for the so called useless pyrolysis oil LOL. Paper has lost his argument.
This is where the production and stockpiling of product pays off hehehehe. Instant money from pre-arranged deals. Guess things worked for Ron from Con eh? I bet he did a little dance when he read that. LOL
Will have to see what PP's new rant will be now its proved our oil had value.
news regarding sstp/agrimax venture. separate entity. Usse will have its own pr's. In this case though, whats good for the gander is good for the goose.
The certification is good the the Baytown product too.
I had thought so myself but am no longer so sure after a speak with IR today. Perhaps there is someone looking at it and USSE. Who Knows?
At some point the Baytown facility goes into production and the technology has a chance to prove itself over a time period. When that happens the Mississippi location could look like a pretty good location. A hundred reactors daily production would look sweet and is a pretty big building.
Right now a production facility is being built with someone else's money, and we are bound to siin find out if its gonna be boom or bust for us longs.
thanks for the heads up mainuh! Looking forward to the bcit filings. Are we finally gonna do something there by megas speak?
Monday meeting. Hey folks just remember that since the meeting involves different parties (multiple), that the pr will have to meet the approval of all involved. This means any adjustment to the pr will have to be approved by all mentioned in the pr.
Just because they agree a pr would be a good thing at this juncture, doesn't mean that they will all agree on the content, which it will need.
So, my way of thinking it may take a couple of weeks to get the details worked out to the satisfaction of everyone involved, and does not serve to comprimise the integrety of the agreement.
Since I am working on freeing up some cashola, Im hoping this is the case, but wont argue it a decent pr comes out this week.
Don't get your panties in an uproar, if no pr this week despite the meeting(s).
Penn.
Hi Chuck, remember you from amep board also I believe. OUCH. Reverse split. Yes there was a second divvy, and we have one more coming, one tyeg for every 10 dvfi.
The first two should be free trading come end of July 08 or thereabouts. tyeg picked up some wells in OK, and then hit some gas. A pipeline for the gas should have been installed by now (pr) and the OK wells should have been re-worked by now also.
On the Canadian side, tyeg did some seismic testing and located what they believe to be a nice find. Drilling was supposed to commence in August and should have been completed by now.
No news from the company, so everyone's in the dark right now.
I feel for ya in regards to dvfi shareprice from what it was a year ago. I took all my money out months ago and am riding freebies - less pain.
Sorry to hear about your health problems. I put some money into sstp and usse - a new alternative fuel company. We have a few plants just now getting set up for production, and partnering up with a fortune 500 company from Texas, and rumour has it a company in the cellulosic ethanol business is looking hard at our tech. because of the extradinary yield and unique bio-fuel characteristics.
We will be offering an oxygenated blended diesel product OD66 and B100 a gasoline replacement. Our cost per gallon is about 50 cents, and government incentives might make it even cheaper.
Monday is rumoured to be a "meeting" day between potential partners, and a pr update is on the agenda. If a pr is put this week or next, I expect a substantial increase from current levels.
Take a look at pbls, they are raking the money in, 08 looks like it will be a steller year for them. tfzp was looking not to shabby last time I looked.
Good to hear from you again, Chuck, stop by the fishin hole anytime.
Penn.
Aside from that they (Agrimax facility) own their own tanker trailers, they are in the pics. In such close proximity to the majors refinery and blending facilities, we are sitting pretty IMHO.
P.
Gee, thats a real tuff one there Geo. Lets see...a significant portion of oil/fuels/chemicals are refined, blended and shipped from there to various parts of the country by road, rail, pipeline and ship.
Perhaps I'll have to wake up and smell the coffee first.
Thanx Zardiw, there's the spur line I was lookin for, as can be seen in the other pic's. Concrete company right next to it.
By Chris Clayton
DTN Staff Reporter
WASHINGTON (DTN) -- With oil reaching the $100-a-barrel threshold, Democratic
senators Thursday spotlighted some of the energy provisions of the farm bill
that Senate Agriculture Committee Chairman Tom Harkin said would cause
cellulosic plants to "mushroom" across the country.
With a backdrop declaring "Feeding and Fueling the World," Democratic senators
emphasized the energy aspects of the farm bill as debate continues to stall over
procedural matters. Energy has become a key component in the farm bill.
Harkin, D-Iowa, further emphasized the energy aspects of the farm bill by naming
it "The Food and Energy Security Act of 2007." The farm-bill debate in the
Senate is expected to go through at least the end of next week. The Senate and
House would then conference to work out differences in the farm bill. President
Bush's advisers have recommended he veto either version of the farm bill at this
point. Given the energy demands on the country and the need to produce more
renewable energy, Harkin said he thought it was "unconscionable" that the
president would consider a veto. Criticisms about energy provisions are minimal,
which was reflected Thursday when the Republican staff for the Senate Budget
Committee held a press briefing to raise questions about several measures in the
farm bill. The minority staff did not cast stones at the bill regarding energy
expenses and energy tax cuts.
The bill's cellulosic provisions will try to deal with incentives for producers
to grow biomass crops while spurring investment in plants. That's a struggle
right now largely because producers don't want to grow without a market, and
investors don't want to waste capital if there isn't enough biomass for plants.
"We have to confront a classic chicken-and-egg dilemma," Harkin said.
Ethanol production topped 6 billion gallons this year, Harkin said, though it
was actually closer to 7 billion gallons. He said the provisions in the farm
bill, if implemented, could reach much higher levels than 6 billion gallons.
"The new farm bill will put us on a path to produce 10 times that," Harkin said.
Sen. Amy Klobuchar, D-Minn., said the bill also has incentives for E-85 pumps
and infrastructure. Oil companies have continued to discourage E-85 pumps, but
that has to come to an end, she said.
"As we look at $100 a barrel for oil, I don't think we can afford to do that,"
Klobuchar said.
The Senate farm bill and accompanying tax package combine for $2.5 billion in
spending and tax incentives for energy. The House Agriculture Committee spends
roughly $100 million more, though the House leans more heavily on spending costs
without the tax breaks. The Senate uses a mix of spending provisions and then
also includes tax provisions, some of which are also built into the Senate's
energy bill.
Right now, it's unclear what amendments would be offered directly related to
energy provisions. Sen. Kit Bond, R-Mo., said on the Senate floor Thursday
afternoon that he would offer an amendment that would allow farmers to grow
cellulosic feedstock on Conservation Reserve Program land and receive a reduced
CRP payment in the process.
One difference in the House and Senate bills is that the House would require
biorefineries using federal money from the farm bill to comply with the federal
labor-wage law known as the Davis-Bacon Act. The provision irks conservatives
who claim the act artificially inflates wages. Harkin said that would likely be
worked out once the House and Senate go to conference.
The House bill provides $2 billion in loan guaranties for biorefineries with
half the money going for loans of less than $100 million and the other half
going to loans of up to $250 million.
The Senate bill provides $994 million to spark cellulosic ethanol, including
$227 million to spark biomass crop production through incentive payments for
production, harvesting, transportation and storage. There also is $345 million
to help cellulosic facilities buy feedstocks.
The House and Senate have parallel language regarding the $422 million that
would go for business research and development projects to help achieve
commercial biorefineries, or cellulosic production facilities.
Another $270 million in the Senate bill would go to the Rural Energy for America
Program, which has grants and loans for renewable and energy-efficiency
programs. At least 15 percent of this money would have to go to programs to
convert animal waste into energy.
The House also has $500 million over five years for grants to develop rural and
renewable energy programs. The Rural Energy for America Program would see loan
levels increase to up to $25 million.
Under the tax provisions, the 51-cent-per-gallon blenders credit would also be
dropped to 46 cents a gallon on years following the U.S. reaching the
7.5-billion-gallon renewable fuels standard. That proposal is projected to
generate $854 million, which would be shifted to help pay for other tax credits
in ethanol and biofuels.
A new credit would pay cellulosic ethanol plant producers a new
67-cent-per-gallon credit for every gallon of ethanol produced up to 60 million
gallons per year. That would cost about $282 million over five years.
With all of the credits, a 60-million-gallon cellulosic ethanol plant would be
able to generate $1.23 in tax credits for every gallon with the 67-cent credit,
the 46-cent blenders credit and the 10-cent credit as a small ethanol producer,
though the blenders credit goes to the gasoline refiner who actually blends the
fuel.
The package also creates the "small fossil-free alcohol producer credit." This
credit would provide a 25-cent-per-gallon credit for up to 60 million gallons of
production for a fossil-free facility. These facilities must use at least 90
percent of the fuel from a "biomass." That could directly boost plants that use
livestock manure for methane.
To further spark cellulosic ethanol plant development, the bill would create
accelerated tax depreciation for biomass ethanol plants. Those plant producers
would be able to write off up to 50 percent of equipment costs on their first
year of tax returns for plants using biomass matter such as sugar cane, corn
stalks or switchgrass. The proposal has further tax-depreciation provisions for
cellulosic plants.
The proposal also would extend the 50-cent biodiesel mixture credit, which is $1
per gallon for agri-biodiesel plants such as soydiesel. The 10-cent small
producer credit for agri-biodiesel plants up to 60 million gallons would also be
extended to 2012 as well.
that address meets consort concrete which seems to be next door in the pictures, but is no where near the railroad featured in the pics.
Larice: re - new location. In one of pipeline pictures there is a sign butenal butylene something like that. I remember looking at who manufactured that, and there were two manufacturing facilities listed for Baytown....there is a post on IV around Nov. 3 or 4...just when the picture were first posted that lists the manufacturers along with addresses. Be interesting to compare, as the Baytown producers were not what I consider small.
It has already been five whole months since they announced the deal with Agri-max. Thats plenty of time to design and complete a production/refining facility and establish distribution centres?
Doesnt big oil companies build one every couple of months to help meet demand?
Grrrrrr........the nerve of some companies dragging their feet like this!!!!
It has been a whole two months since they announced B100 gasoline replacement!!!!Whats the matter, cant they get their stuff together? Why why why??????
60 dayz is plenty of time to perfect the formula and process, test it in engines, apply for and receive the nec. permits.
It has been a whole three months since they announced OD66. Why isnt it for sale already?
One Year and 18 Days, 383 Days closer to production and sales!
In another twenty years, water will be main concern. Rising oceans, not enough to drink, China/India consuming everything you care to throw at them.
We can do without oil, fresh water to drink is another thing.
Thanx for the pm LOL. Announcement!!!DVFI posts do NOT, I repeat NOT belong here. This is the tyeg board mainly for discussion of tyeg, but left to my discretion (and Fratboy).
As board wizard, I will wave my wand, says the magic words and presto...the post disapears.
One of the first things one learns about pinks is that anything is possible, but not probable. When the non-probable does happen people either lose a lot of money, or make a lot of money...
Two sure things about pinks, if you dont invest, you cant lose any money.
If a stock is a lottery play, you cant win unless you buy a ticket.
You need a buyer for a seller.
You wonder all day long about everything. In my post I said I wasn't sure what firm he was from. In the case that that particular firm is NOT involved, my post serves to inform others that JR does indeed have a qualified financial advisor that travels with him at times and works hand in hand with amspec.....JR cannot be everywhere at one time.
This person apparently quit his job to work with USSE and JR for what its worth, and works out of a different Redwood office than IR. For me, it is interesting to note that although he works out of a different office and location, he was aware of the invite from Khosla I waggled.
I call and speak to a person from that firm anytime I want, provided he isnt traipsing around the country or world with JR, or busy working with amspec.
Bottom line is that they are consultants. Whether or not JR acts on their advice is another thing. This person also calls up or speaks to our friend in Conneticut every now and then. Im not sure he is from that particular firm, but content he has firsthand knowledge of what things are happening.
While you continue to post questions here on the board some call up the people who are qualified to answer those questions getting informed answers instead of conjecture.
paper: 1) you are forgetting that even the company(s) whose deal did not come to fruition with USSE had nothing but good things to say about the product - after the deal was dead in water. 2) JR's problem is not the pitch, but rather to who to pitch it to..
3)Cornell University did a little pitching for them, a US Senator, a few independent government certified analysis labs, representatives from the DR, Mike from VEE-GO, the list goes on. You get the picture.
You on the other hand have been attacking JR and process now for over ten years. Where are all your supporters? There should be hundreds of them ready to do battle against JR. Perhaps it is Your pitch that lacks substance.
It matters little now. Its my estimate (guess)that a fat juicy pr is less than one month away, probly sometime during the second half of this month.
Getting down to crunch time. Good time for you to wake up, smell the coffee, raise your head up, stride forward and find a new company to desparage.
Your time here is about done.
Penn.
That dont mean mean much to the gazallion gas guzzling cars curreently on the road and still in production the world over.
Dont see that changing anytime soon. It will take years and years to wean the economies of the world off oils.
The latest craze is these hybids. It hasnt been on sale long enough to have made any noticable impact on oil demands. Despite the advancements and increasing sales of alternative power vehicles, the increase in yearly demand for oil still kicks azz.
When yearly increases in consumption levels off or starts to decline, maybe I'll remember your words. Thanx for your opinion.
P
Just a thought but Ithink it might be better to shred it on the spot and blow it into the back of a truck.
So far we have only been concerned with what an oil biggy would do for us, and some have gone so far as to put it into dollars and cents.
We should also be posting on what our partnership does for the oil biggy! There are definite benefits to whatever energy company hooks up with us, provided our products perform as indicated.
There also a lotta talk on how can we be profitable with soybeans at ten bucks a bushel. First of all, we are able to work with off spec beans and product. Second, we utilize a mixture of both soybeans and chopped corn stalk - almost a waste product. Only a portion of the mixture need be soybeans - I forget the percentage.
If using a 50/50 mixture by weight our cost per gallon goes down quite a bit. But even if we used a three to one ratio soy to cornstalk, we would still be a lot cheaper than 100% soybeans for feedstock.
If the oil biggy can cut costs down on their retail product by 10 cents per gallon, thats a whole lotta profit.
not pumped out. todays price action was designed to again slow buying - which it did. Play with the pps all you like, it wont change the facts or the pps direction when the JV partner and plant progress is finally announced.
When that occurs, people watching from the sidelines with have to compete for shares that the JV partners investors will be scooping by the truckload. There is currently a limited supply in the working float, and a good portion of that already gone.
GLTY -
P
Could have sworn I made a post a moment ago concerning Neil Boone and that fleet convention. I said according to the person at REdwood I talk to, Neil Boone or amspec did not attend. As a consequence our big news did not make it to other companies ears. I think someone wanted our juice bad and wanted things kept hush hush.
Followyourgut: Neil Boone did not attend the fleet convention (opis?)per Redwood. I dont think amspec had a rep there, but was supposed to have two. B100 was to be mentioned at that one as a new development. If Neil and amspec had attended, we would have heard about it. The big question was why they did not attend but headed elsewhere on biz.......hehehe.
Someone did not want the word to get out there. What USSE has would have been blabbed to everyone. Since then things have been pretty hush hush. I suspect it is exactly what our new pards want, to remain quiet until the deal is done and they got what they want. I can be hip to that.
Not just any pr will do. An announcement of the deal including updates on production facilities, daily production capability, details on shipping and anticipated number of outlets selling product would help.
If our partner operates 500 plus retail outlets (gas stations)thats a wholelotta $$$$$$$$ generated on a daily basis. Walmart has close to 400 outlets and they aint even a big oil company having several brand names under their corporate flag.
Im pretty excited about the possibilities. Whats the daily production numbers four reactors are capable of running 24/7?
OK, use the free pm feature on the other board. Excuse my abruptness, my wife has been ill and bedridden for almost a week. My patience has been worn a little thin by the experience. Sorry. P.
thats funny. I didnt' insist on your private email before sharing info with you at IV. Never mind I'll wait for the pr.