Governors’ Ethanol Coalition-International Committee
Conference Call Minutes
April 10, 2003
Attendees:
Alain Lefebvre (Canada)
Per Carstedt (Sweden)
Luiz Carlos Correa Carvalho (Brazil)
Maria Boardman (U.S.-Wisconsin)
Todd Sneller (GEC-Nebraska)
Bill Cruickshank (Natural Resources Canada)
Angela Graf (BBI International)
Jaime Keating-Klco (BBI International)
- World Summit on Ethanol for Transportation Fuels: November 2-4, 2003
Alain described the status of the World Summit to the group. He noted that the program is finalized and has been sent to the printers. Alain went through the entire program with the group. He noted that the planning committee is in the process of confirming speakers. Per mentioned that it might be of interest to the Summit planning committee to include a speaker from Sweden to discuss the cellulose pilot plant during Roundtable Five. He commented that during Roundtable Six there should be a speaker to discuss the use of ethanol in fuel cells. Per also noted that Scania is no longer producing buses and that he is working on rallying a consortium to approach bus companies. The group agreed that Scania should be removed from the program. Per suggested the European Buyers Consortium speak due to their knowledge of second generation engines in public transport and their fifteen years of experience.
Caio mentioned he would send an email to Alain with the name of the speaker for ethanol contracts during Roundtable Four.
Angela then went on to explain the sponsorship program to the committee. She noted that they have already coordinated Canadian National Sponsors and will continue to pursue potential sponsors from both Canada and the US. She noted that there are various levels of sponsorship and that there is a comprehensive sponsorship program. She requested that the group send her additional ideas for sponsors along with contact information. Sponsors will be posted on the website.
- Member Updates
Canada
Apart from the World Summit, Alain mentioned there have been discussions with the Federal Government and the Provinces to identify different measures, specifically fiscal and mandatory, to encourage the development of ethanol. These discussions stem from climate change efforts. They will target the transportation sector by gradually introducing the fuel into fleets. He also mentioned that the Iogen plant in Ottowa is now testing various feedstocks for ethanol production. They plan to take people on tours of their plant starting the beginning of summer.
Alain noted that the details and engineering of an ethanol plant in Quebec is in its final stages. They are looking to begin construction in the summer. This plant will have corn as the main feedstock. Per questioned Canada’s dependence on foreign oil. Alain indicated Western Canada is a net exporter of crude oil. Quebec is dependent on imports primarily from the North Sea and Algeria. In 2001, Canada imported 2.8 million gallons per day.
Sweden
Per explained that the European Parliament and Commission have now settled the directive for biofuels. This directive will be activated January 1, 2004. The member countries are obligated to use 2% biofuels by 2005 and to increase use annually by .75% until 2010. The goal is to reach 6% biofuels use by 2010. The member countries can independently determine how the directive will be reached, be it though low blends, buses or FFVs. This directive includes biodiesel and ethanol. This directive is indicative only, meaning use in Northern Europe is mandatory, Southern Europe is excused from the directive and other countries have a sliding option. Sweden imports 90-95% of its oil. The goals of the directive are two-fold: decrease dependence on foreign oil and reduce CO2. Per anticipates by 2010 there will be more ethanol use than biodiesel. This is due to the ease of use of ethanol in existing economies. Sweden is trying to build an adequate infrastructure. In Sweden, for a population of 9 million there are approximately 100 E85 pumps, compared to 240 million people in the US with only 150 pumps. Sweden’s goal is to have 1,000-2,000 E85 stations by 2005. The objective is to force infrastructure and the incremental sales of FFVs. They aim to set an example and spread the initiative to other countries.
Brazil
Caio mentioned that Volkswagen is now selling FFVs. This is in addition to three other automakers currently selling FFVs, General Motors, Fiat, and Ford. Caio also mentioned that there are opportunities to receive support from the government that will be beneficial to automakers. Per asked if there are any articles explaining the project. Caio noted he would send some information to the committee. Caio also noted that
the new government is positive about ethanol. Caio is now the President of a national chamber of sugar and ethanol producers. This group will have discussions about ethanol in Brazil with the ultimate goal of developing sound public policy.
US
Todd noted that there has been a lot of activity on Capital Hill regarding a new energy bill that includes a RFS. This omnibus bill was presented in several pieces to expedite the passing of the necessary legislation. Todd is optimistic that this bill will pass during this congressional session. In addition, the Senate Finance Committee has now applied a federal incentive for E85 which includes redirecting 2.5 cents to the Highway Trust Fund. He also noted that there was an increase in the amount of FFVs operating in the US. At the end of 2003, 3 million FFVs will be on the roadways, compared to the 2.3 million on the roadways in 2002. Todd also mentioned to Caio that there is some interest in the GEC to pursue ethanol in aviation fuels. Todd noted that the GEC already supports aviation studies at Baylor University and there is potential to do additional research in North Dakota. Caio said that he will forward contacts to Todd.
- Other
Maria contacted Paritud regarding the World Summit. In the conversation Paritud mentioned that he is still working on an MOU between Thailand and the GEC and alliances. Since his government was in transition at the end of last year, they had not decided how the Ethanol Committee would be handled. He would still like to work with the committee to plan a MOU signing event. Alain stated that an event at the upcoming World Summit is a possibility. Maria will contact Paritud and gauge the timing and interest in an event in November.
- Committee adopted minutes from February 12, 2003 conference call.
- Reminder the next GEC-IC conference call is scheduled for Wednesday, May 14, 2003 from 9:00am-10:30pm (CDT). Dial in number 608/265-1000 code 2966. Please make every effort to join the call.