The past year was significant for the ethanol industry. EPA approved E15 (15% ethanol blended gasoline) for model year 2001 and newer vehicles. And the Volumetric Ethanol Excise Tax Credit (VEETC) of $0.45/gal. expired. Ethanol production is expected to increase with E15 entering the market. The Renewable Fuels Association (RFA) has reported that it is working to finalize federal requirements to certify E15 blends. A couple of states are ready to go with E15 as soon as the federal requirements are completed.
The biomass industry, and consequently the market for handling equipment, is growing, but just how much will depend a lot on government policy. While federal legislators recently retained funding for energy title programs in the 2012 appropriations “minibus,” there could be cuts to the funding allocated for energy programs in the next farm bill.
As the markets for biomass grow, so does the development of biomass-handling equipment. Continued testing on corncobs and dedicated energy crops has allowed manufacturers to tweak the equipment to make handling more efficient. Here’s a quick update.
Vermeer Corporation, Pella, Iowa, has sold the 605 Super M Cornstalk Special Baler for five years. Jay Van Roekel, Vermeer, says the baler has been working well in all residue crops.
If you are not increasing corn plant populations every year, you may not be reaping full yield benefits, says Roger Elmore, extension corn specialist, Iowa State University. Elmore has found that a population of about 35,000 plants/acre is optimal for yield in tests he conducted throughout Iowa.
Crops for producing biomass and advanced bale-handling equipment are expected to be major technologies in the future of agriculture. Principal scientist at ICM, Jeremy Javers, says biomass production will someday become similar to row-crop production. Improvements have been made in the yield of energy crops and in harvesting equipment.
As corn-based ethanol facilities strive to drive down production costs, they are taking a closer look at feedstocks. Molecular geneticists and seed breeders have been responding, which may impact the types of corn produced in certain areas.
This week in a hearing held by the Energy & Environment Subcommittee, representatives from Congress, the American Petroleum Institute, and other organizations argued that EPA’s decision to permit the use of E15 could be extremely costly to consumers.
Senators have reached a bipartisan agreement that would end VEETC and ethanol tariffs on July 31, 2011, but would extend tax credits for cellulosic biofuel, small ethanol producers and alternative fueling infrastructure.