Can Ethanol Reduce American Oil Dependence?

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Shell, Iogen scrap plans for Canada biofuel plant
Apr 30, 2012

(Reuters) - Royal Dutch Shell Plc and Iogen Corp have scrapped plans for a commercial-scale biofuel plant in Manitoba, spelling the loss of 150 jobs and raising questions about widespread and near-term use of fuel made from agricultural waste in Canada.

The Iogen Energy joint venture had been studying building a plant to make ethanol from straw and other plant waste, rather than from food crops such as corn and sugar. One location discussed was Portage la Prairie, west of Winnipeg, Manitoba.

The proposal had been in planning stages and a spokesman for Shell could not provide an estimated cost.

Shell first invested in Iogen 10 years ago and the partners have operated a demonstration plant in the Ottawa area since 2004.

"We do continue to have a relationship with them and continue to retain the licensing rights to the technology developed," Shell spokesman David Williams said on Monday.

"It's like a lot of things with R&D, you build demonstration plants, you get that far, and you learn from them, and this has been an important source of knowledge."

Iogen will still employ 110 people at its Ottawa headquarters and plans to expand new technology for production of the biofuels made from cellulose, the partners said.

Cellulosic ethanol is made from the non-food portion of crops. Ethanol production from food grains, especially corn, has generated debate about the ethics of diverting food for use in fuel and has been a key reason why U.S. corn stocks are projected to fall to a 16-year low this summer.

Chicago corn futures prices hit a record peak last summer and remain historically high.

The Canadian and provincial governments spend about C$250 million ($253 million) annually, according to the agriculture think-tank George Morris Centre, to subsidize production by companies such as Husky Energy Inc and Suncor Energy Inc. One aim is to cut greenhouse gas emissions from conventional fuel.

Ottawa wants gasoline across the country to contain an average of 5 percent ethanol, creating demand for 2 billion liters, but current production falls short of that level.

The decision by Shell and Iogen doesn't threaten the future Canadian biofuels production, said Scott Thurlow, president of the Canadian Renewable Fuels Association.

"It's just like any other fuel, it takes time to build up the necessary capital to implement," he said. "While I am personally disappointed, I don't see this decision as a threat to the industry in general."

Thurlow said there are demonstration projects in Canada for cellulosic ethanol, but no commercial production to his knowledge.

For its part, Shell is a partner with other ethanol producers, including Brazil's Cosan and a U.S. company called Virent, which has developed technology to convert plant sugars into hydrocarbon molecules.

($1=$0.99 Canadian)

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American Ethanol Launches Public Awareness Campaign Promoting the Benefits of U.S. Made Ethanol

WASHINGTON, June 8, 2012 /PRNewswire-USNewswire/ -- NASCAR Official Partner American Ethanol announced a comprehensive campaign to further increase awareness among NASCAR fans about the benefits of American Ethanol.

The "American Ethanol Sweepstakes" includes a national promotion from June 8 through August 31, paid media with Turner Sports for NASCAR on TNT and NASCAR.com, race entitlement sponsorships at Iowa Speedway and Chicagoland Speedway, and experiential activation at select tracks and industry events. Additional elements of the campaign will be announced in the coming weeks.

"NASCAR is the perfect platform to dispel the myths about U.S. made ethanol," said Tom Buis, CEO of Growth Energy. "Not only are these fans among the most brand loyal in all of sports, but they also understand the importance of creating jobs here in America that cannot be outsourced, reducing our dependence on foreign oil and using a cleaner burning fuel to protect our environment -- all of which American Ethanol does.

"This campaign truly showcases that if American Ethanol meets the high expectations and rigorous demands of NASCAR, it will bring the same level of performance and benefits to your car," Buis added.

The campaign features Richard Childress Racing driver Austin Dillon, grandson of legendary NASCAR team owner Richard Childress. The 2011 NASCAR Camping World Truck Series driving champion and current NASCAR Nationwide Series championship contender stars in a 30-second national television commercial that highlights the benefits of U.S.-made ethanol. Fellow RCR driver Kevin Harvick also makes an appearance in the spot, which is scheduled to debut during the broadcast of the Pocono 400 NASCAR Sprint Cup Series race on TNT and is designed to drive fans to American Ethanol's Facebook page to enter for a chance to win one of three Chevy Silverado trucks and 500 additional prizes. By visiting Facebook.com/AmericanEthanol, NASCAR fans can learn more about American Ethanol. Additionally, Dillon will run an American Ethanol paint scheme in a RCR-prepared NASCAR Sprint Cup Series Chevrolet on June 17 at Michigan International Speedway, marking the 22-year-old driver's first Sprint Cup Series start of the 2012 season and the second of his career.

In addition, RCR driver Joey Coulter will carry the American Ethanol paint scheme on the No. 22 Chevrolet in the Camping World Truck Series at Iowa Speedway on July 14.

American Ethanol will serve as the event entitlement sponsor of the Camping World Truck Series races at Iowa Speedway on July 14 and September 15.

Chicagoland Speedway will host the American Ethanol 225 on Saturday, July 21. The brand will also activate heavily at Kentucky Speedway, Indianapolis Motor Speedway, Bristol Motor Speedway, and at key farm industry events across the Midwest.

About American Ethanol

Representing a wide array of ethanol supporters, from farmers to bio-engineering firms, American Ethanol was established by Growth Energy in partnership with the National Corn Growers Association and others. By establishing an Official Partnership with NASCAR starting with the 2011 racing season, the same year that NASCAR switched its fuel to Sunoco Green E15, American Ethanol aims to educate and inform the broader American public about the benefits of U.S.-made ethanol.

About NASCAR

The National Association for Stock Car Auto Racing, Inc. (NASCAR) is the sanctioning body for one of North America's premier sports. NASCAR races are broadcast in more than 150 countries and in 20 languages. In the U.S., races are broadcast on FOX, TNT, ABC/ESPN/ESPN2, SPEED and SiriusXM Satellite Radio. NASCAR fans are among the most brand loyal in all of sports, and as a result more Fortune 500 companies participate in NASCAR than any other sport. NASCAR consists of three national series (the NASCAR Sprint Cup Series, NASCAR Nationwide Series, and NASCAR Camping World Truck Series), four regional series, and one local grassroots series, as well as two international series. Also part of NASCAR is GRAND-AM Road Racing, known for its competition on road courses with multiple classes of cars. NASCAR sanctions more than 1,200 races at 100 tracks in more than 30 U.S. states, Canada and Mexico. Based in Daytona Beach, Fla., NASCAR has offices in eight cities across North America. The next NASCAR Sprint Cup Series race at Michigan International Speedway will be broadcast on June 17 at 1pm ET on TNT. For more information and a complete schedule, visit www.NASCAR.COM. Follow NASCAR on www.facebook.com/NASCAR or on Twitter: @NASCAR

About Richard Childress Racing

Richard Childress Racing (www.rcrracing.com) has earned more than 200 victories and 14 championships, including six in the NASCAR Sprint Cup Series with the legendary Dale Earnhardt. RCR was the first organization to win championships in the Sprint Cup Series, Nationwide Series and Camping World Truck Series. Its current Sprint Cup Series lineup includes Paul Menard (No. 27 Menards Chevrolet), Kevin Harvick (No. 29 Budweiser/Rheem/Jimmy John's Chevrolet) and Jeff Burton (No. 31 Caterpillar/Wheaties/BB&T Chevrolet). Its Nationwide Series program includes Elliott Sadler (No. 2 One Main Financial Chevrolet), 2011 Camping World Truck Series champion Austin Dillon (No. 3 Advocare/American Ethanol/Bass Pro Shops Chevrolet) and Harvick/Brendan Gaughan/Menard/Max Papis/Ty Dillon (No. 33 South Point Hotel & Casino/Menards/Hunt Brothers Pizza/Armour/Fast Fixin'/ Chevrolet). Tim George Jr./Harvick/Gaughan (No. 2 Potomac Family Dining Group/South Point Hotel & Casino/Kroger/Tide Chevrolet), Joey Coulter (No. 22 RCR/Steak-umm/Husky Liners Chevrolet) and 2011 ARCA Racing Series champion Ty Dillon (No.3 Bass Pro Shops Chevrolet) compete in the 2012 Camping World Truck Series season.

SOURCE American Ethanol