| Welcome to the Carbohydrate Economy Electronic Bulletin |
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| The Carbohydrate Economy Bulletin reports on the growth of an emerging industry based on plant matter-derived industrial products, and on the growth of farmer-owned manufacturing enterprises. The Bulletin contains information on new industry technologies, highlights businesses and their products, and tracks policies that advance a carbohydrate economy. To view previous Bulletins, visit the "Bulletins" section of our web page, accessible through http://www.carbohydrateeconomy.org/Resources/resources.cfm
And visit our Carbohydrate Economy Clearinghouse web page to access a database of over 200 plant matter-based product manufacturers, news headlines, reports and events at http://www.carbohydrateeconomy.org
This Bulletin is published by the Institute for Local Self-Reliance (ILSR), a 26-year-old nonprofit research and educational organization promoting healthy and sustainable local economies.
Please send all comments, questions, news submissions, and requests to be added or removed from the email list to info@ilsr.org
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Agricultural Fibers
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| Hemp Round Up |
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| To date nearly one-third of all US states have discussed hemp within their legislative chambers. Last year nine states passed legislation calling for the study or cultivation of industrial hemp. States are now calling for changes in federal policy. In May 2000, Vermont passed a resolution urging the federal government to reconsider policies that restrict the cultivation and marketing of industrial hemp. Four other states have passed similar resolutions. Before farmers can proceed in full scale planting of this crop, the federal government must change its position and policies related to the planting and marketing of industrial grade hemp.
The most recent hemp victory came with the Navajo Nation Council’s vote to distinguish industrial hemp from marijuana. In July, the tribal council approved amendments to Navajo law that legally differentiate between the two plants based on THC levels. The next step for the Navajo is to create legislation to regulate cultivation of industrial hemp on tribal lands.
For the first time since 1958, industrial hemp is taking root in US soil this growing season. A private company and sovereign nation have planted a total of 1.75 acres of hemp.
In Hawaii, a quarter acre test plot was planted in December 1999. Strict security requirements for the plot include a 12-foot high fence topped with barbed wire and 24 hours infrared surveillance. Alterna, a hair care company using hemp oil in its products, provided $200,000 for this yearlong project.
On the Pine Ridge Reservation in North Dakota a one-and-a-half acre plot was seeded in early May. The hemp was planted under the Oglala Sioux Tribal Ordinance 98-27 allowing for the cultivation and harvesting of industrial hemp on tribal lands. The tribal ordinance should protect the rights of this group to plant industrial hemp, though a legal showdown is expected between the tribe and the DEA. Meanwhile, in early July, individual plants were over three feet high.
For a state-by-state summary of legislative action visit http://www.gametec.com/hemp/CT.Hemp.html
For information on the Pine Ridge Reservation contact Tom Cook of the Slim Butte Land Use Association at mailto:slmbttsag@bbc.net |
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| Natural Fiber Study Encourages EU to Modify Subsidy Reform Proposals |
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| The Nova Institute has released its report entitled "Study on Markets and Prices for Natural Fibres (Germany and EU)." The study was undertaken in response to the EU commission’s proposals to reform flax and hemp subsidies. It analyzes current and future markets for flax and hemp fibers produced in the EU and promotes a policy framework that will guarantee further development of European natural fiber markets. Research was conducted primarily through a comprehensive data survey of all relevant manufacturers and associations.
The report finds that, in 1999-2000, approximately 60,000-70,000 tonnes of flax and 25,000-30,000 tonnes of hemp short fibers were produced in the EU. Currently, flax short fibers command 45 percent of the standard and specialty pulp market and 20 percent of the apparel and home textile sector. Hemp fibers hold 87 percent of the specialty pulp market. New product lines for short fibers are being pursued with the help of well- sponsored research and development projects and innovative entrepreneurs. The most promising are composites for the automotive industry and thermal insulation materials for the building sector. European fiber processors forecast a market share for these product lines of about 30-40 percent of the still growing market as soon as 2005.
Since 1982, the EU has directed more than 100 million DM ($48 million US) in subsidies to the development of new flax and hemp applications and towards harvesting and fiber processing technologies. In addition, national subsidies have contributed significantly to the growth of the industry. In Germany alone, more than 175 million DM ($84 million US) has already been invested, with an additional $150 million DM ($72 million US) planned for the next few years. Despite high subsidies, the economic situation of EU fiber processors is characterized by small profit margins due to costs associated with the startup phase of new processing lines and competition from imported fibers.
The study finds that decreases in EU subsidies will jeopardize any further development of the natural fiber industry. It argues that the opportunity to guarantee a sustainable supply of natural fibers for the industry from the EU would be imperiled by any short-term subsidy savings. The study ultimately calls for the modification of the EU commission’s proposed flax and hemp subsidy reforms.
The English translation of the complete study is available at http://www.nova-institut.de/pdf/nova-study-full.pdf |
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| $1.2 Million Awarded to Rice Straw Demonstration Projects |
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| Each year approximately 500,000 acres of rice are cultivated in the Sacramento Valley, producing about 1 million tons of straw. California’s moratorium on rice straw burning has left growers with limited options and high costs for straw disposal. In 1997, the Rice Straw Demonstration Fund was created to provide cost-sharing grants for projects that promote self-sustaining commercial uses for straw.
Seven grant requests were received for fiscal year 1999-2000. Based on the results of the review process, five projects were awarded a total of approximately $1.2 million. These projects have the potential to use as much as 800,000 tons of rice straw annually after five years. The winning proposals are:
* Kuhn Hay to open markets, establish infrastructure and develop a treatment protocol for rice straw export to Japan.
* BC International (BCI) and the Rice Straw Cooperative (RSC) to evaluate the degradation of stored rice straw and its effectiveness for making ethanol.
* Broken Box Ranch to develop a commercial scale composting plant utilizing rice straw and livestock waste. Organic compost will be sold in bulk to nearby rice growers who are looking for alternative soil amendments.
* Arkenol Holdings, LLC to further research into the commercial production of ethanol from rice straw.
* Smith Ranches to evaluate the logistics and effectiveness of producing rice straw silage for cattle feed.
The full text of grant awards proposals is available at http://www.arb.ca.gov/rice/ricefund/rfsr051500.pdf |
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Biobased Chemicals
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| Green Joins Gold in Sydney |
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| As athletes compete for medals of gold this September at the 2000 Summer Olympics in Sydney, the Sydney Olympic Committee (SOCOG) will be striving for green. Efforts are underway to make this September’s events the most environmentally responsible games ever. A key player in this initiative is Biocorp, Inc., a California-based company that manufactures biodegradable, compostable plastic food service utensils and trash bags.
Biocorp has been selected to supply the event with over 45 million spoons, forks, knives, coated cups, cup lids, straws, and plates. Since these items are all biodegradable, they can be disposed of with food scraps in Biocorp’s starch-based trash bags and taken directly to composting facilities. It is expected that this waste management system will divert as much as 70 percent of waste from landfills.
Over 8 million visitors, 10,000 athletes and 5,000 support staff are expected to generate 10,000 tons of waste during the 17 days of games. Traditionally, composting waste from an event this large has involved separation of non-biodegradables from the waste stream, a timely and costly process that rarely makes economic sense. Though Biocorp’s products are 2-3 times more expensive than the non-biodegradable alternatives, it is expected that overall savings in waste disposal will counterbalance the initial cost.
Biocorp’s manufacturing process combines cornstarch with other biodegradable materials to produce a plastic that is biodegradable and compostable. The food utensils are made entirely of plant matter -- cornstarch and cellulose from cottonseed. The trash bags are approximately 65 percent cornstarch, 10 percent other natural substances, and 25 percent polycaprolactone, a completely biodegradable petrochemical. When composted, these items biodegrade completely into carbon dioxide, water and biomass within 30 to 60 days.
Biocorp is hoping to contribute to waste disposal solutions for other large events. The company is currently negotiating involvement in this month’s Democratic National Convention and the US Tennis Open.
For more information on Biocorp, visit their web site at http://www.biocorpusa.com |
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| Soy-Based Adhesive System Accepted for Structural Use |
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| PRF/Soy 2000 is a soy-based wood adhesive system used in finger jointing, the process by which wood scraps are bonded together to produce marketable lumber. In late 1999, the system was accepted by the Western Wood Products Association (WWPA) for use in horizontal or structural finger jointing. Previously the product had only been accepted for vertical finger jointing (i.e. non-structural applications).
In addition to meeting the WWPA criteria, individual mills must be certified to use the adhesive system. Willamina Lumber Company, who was certified in 1997 to use PRF/Soy 2000 for vertical finger jointing, is undergoing structural certification tests using the adhesive.
The PRF/Soy 2000 adhesive system involves mixing soy-based GlueMate™, a soy protein product manufactured by Hopton Technologies (Albany, OR), and conventional phenol-resorcinol-formaldehyde (PRF) resin. GlueMate™ is applied to one end of a finger-jointed block of wood, and PRF to the other. The soy-based component is able to replace 50 percent of the PRF resin, reducing the volatile organic compound (VOC) and formaldehyde emissions associated with the PRF resin.
PRF/Soy 2000 has another advantage over conventional formaldehyde-based resin systems: it can be used with green wood as well as with dry wood. Conventional systems can only be used with dry wood, limiting the amount of a mill’s wood waste able to be utilized. Testing has also shown PRF/ Soy 2000 to be stronger than alternatives, and faster-curing.
The product was developed through funding from the United Soybean Board. For more information, contact Jerry Scheid of Omni Tech International, consultant to the United Soybean Board, at 541-773-1450 or mailto:jscheid@ccountry.net |
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| West Central Cooperative Marketing Soy-Based Lubricants |
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| West Central Cooperative, owned by 3500 farmer members and located in Ralston, Iowa, has recently begun manufacturing and marketing two new soy oil-based lubricant products: SoyTRUK™, a fifth wheel grease, and SoyLINK™, a chainsaw bar oil. Unlike the standard petroleum alternatives, these products have the advantage of being readily biodegradable and low in toxicity; they also have a higher flash point and better lubricating qualities than petroleum oils.
SoyTRUK™ is used to ease the friction between semi-tractors and their loaded trailers. The product lasts longer than conventional petroleum greases due to the naturally high viscosity index of vegetable oils, and greatly reduces the negative environmental impacts of using petroleum oils. Several Iowa trucking companies have tested the product with favorable results.
SoyLINK™ is used for lubrication in chainsaw bar, blade, and saw-guide applications. Chainsaw bar oils are classified as a "total loss lubricant" – in the process of use, they are flung from the machine and lost directly to the surrounding environment. When petroleum oils are used, they pose an environmental and human health danger. Vegetable oils, on the other hand, do not.
The University of Northern Iowa’s Ag-Based Industrial Lubricants research program developed the two products, and the cooperative is licensing the marketing rights.
West Central Cooperative produces a variety of soy-based products for industrial and retail markets through its manufacturing division. Other products include hydraulic fluid, paint stripper, asphalt release concentrate, penetrant and lubricant, diesel fuel lubricity additive, and dust control agent. West Central Cooperative is also a biodiesel supplier.
See their web site at http://www.soypower.net for more information. For product questions or ordering, contact Gary Haer, 913-884-8521, mailto:haer@qni.com, or Bev Tierney, 712-667-3200, mailto:bevt@westcentral.net
For more information on West Central Cooperative as well as vegetable oil-based lubricants, see the upcoming articles in the Summer 2000 issue of The Carbohydrate Economy. |
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Biofuels and Bioenergy
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| Biodiesel Distribution Centers Established |
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| Southern States Power Company (SSPC) of Shreveport, LA, markets and distributes OXyGB-60, a biodiesel product derived from waste grease. The company has recently established four distribution centers for OXyGB-60 located in Arizona, Nevada, and Northern and Southern California. These centers are major distributors of petroleum products as well as biodiesel.
SSPC’s customers at this point consist of vehicle fleets such as school districts, federal fleets, and private fleets that do work for the government. Through using a 20 percent biodiesel blend - which greatly reduces diesel vehicle emissions - the fleets are able to meet Energy Policy Act (EPACT) alternative fuel mandates. As biodiesel can be used in existing engines, fleet managers can meet the requirements without the cost of purchasing additional alternative fuel vehicles. And SSPC's waste grease-derived biodiesel is marketed at a price close to the current market price for diesel.
The biodiesel that SSPC markets and distributes is produced in cooperation with NOPEC Corporation. NOPEC manufactures the biodiesel at its Lakeland, FL plant, which has a capacity of 10 million gallons of biodiesel per year. In addition to biodiesel, a small quantity of glycerin, a valuable chemical that NOPEC sells to the pharmaceutical industry, is produced as a co-product.
For more information, visit SSPC's website at http://www.sspowerco.com or contact Mike Sealey of SSPC at mailto:sspc@earthlink.net |
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| Biodiesel Gets Clean Bill of Health |
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| Biodiesel, an alternative fuel made from renewable resources such as soybean oil and waste grease, has successfully completed the health effects testing requirements of the Clean Air Act Amendments of 1990. In doing so, it has become the first alternative fuel to pass these tests. According to the National Biodiesel Board (NBB), "the tests show that biodiesel poses no health threats and its use results in a 90% reduction in air toxins. Biodiesel is non-toxic, biodegradable and is used in conventional diesel engines with little or no modifications."
The research, conducted by Lovelace Respiratory Research Institute of Albuquerque, NM, was coordinated by NBB. NBB has also contributed financial support to the process, which cost in excess of $2 million.
Bus and truck fleets across the country are increasingly looking to biodiesel to satisfy the alternative fuel requirements of the Energy Policy Act of 1992 (EPACT). Through legislation passed in 1998, biodiesel was recognized as an alternative fuel able to meet these requirements, and demand for the fuel has since risen dramatically.
For more information on biodiesel, see the NBB’s website at http://www.biodiesel.org
The report is available at http://www.biodiesel.org/reports/Gen-278.pdf |
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| Northeast Missouri Grain Joins a New Generation of Ethanol Producers |
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| The first ethanol production facility in the state of Missouri began processing corn in late April. Northeast Missouri Grain, LLC (NEMOG), located just outside of Macon, has a production capacity of 15 million gallons of ethanol and over 100 million pounds of dry distiller’s grain annually. The company, owned by a 311-member farmer cooperative, has been working to get the facility going since 1995. The $20 million dollar plant took 11 months to build.
Two legislative measures passed in 1999 were favorable to NEMOG’s endeavor. In April, the Ethanol Producer Incentive Fund’s expiration date was pushed out to December 31, 2007 from December 31, 2000. In July, legislators passed the Missouri New Generation Cooperative Incentive Tax Credit Program to encourage investments in new generation co-ops. This credit is allocated specifically for incorporated cooperatives that own or develop facilities producing products derived from agricultural commodities or renewable fuel production facilities.
To date, 17 of the 57 ethanol facilities operating in the US are owned and/or operated by 15 different farmer-member cooperatives. The total capacity of these plants is 338.5 million gallons annually – approximately 18.5 percent of total US production. Additionally, three other cooperatives have ethanol plants under construction, with total capacity of 60 million gallons.
For more information about Northeast Missouri Grain, contact Steve Burnett at mailto:sburnett@nemog.com |
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Legislation and Policies
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| Biomass Research and Development Act of 2000 Passes Congress |
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| The National Sustainable Fuels and Chemicals Act, proposed by Senator Dick Lugar (R-IN) in May of 1999, passed Congress as part of the larger Agricultural Risk Protection Act of 2000. This bill, the result of a House and Senate conference agreement, incorporates Lugar’s initiative as Title III, naming it the Biomass Research and Development Act of 2000.
The Act promotes the use of biobased fuels, chemicals, and power as a means to strengthen rural economies, reduce greenhouse gas emissions, and develop a sustainable resource supply, among other benefits. It establishes a board to coordinate Federal Government programs and strategic planning to promote the use of biobased industrial products. It also calls for the establishment of a Biomass Research and Development Initiative that will award competitive grants, contracts, and financial assistance to entities to carry out research into and development of low cost, sustainable biobased industrial products.
In addition to funds appropriated for biomass research to the Department of Energy, the Act specifically authorizes $49 million for fiscal years 2000 through 2005 to the Department of Agriculture for this purpose.
To read the text of the bill, visit http://thomas.loc.gov/cgi-bin/query/z?c106:h.r.2559.enr:/ |
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| Missouri Gives Tax Credits to Spur New Generation Co-ops |
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| The Missouri New Generation Cooperative Incentive Tax Credit Program is provided by the Missouri Agricultural and Small Business Development Authority to encourage investments in new generation co-ops. Authorized under HB 888 passed last July, the credit is allocated specifically for incorporated cooperatives that own or develop facilities producing products derived from agricultural commodities or renewable fuel production facilities. The tax credits are only available to individuals or entities that are members of the new generation co-ops- outside investors are ineligible. The amount of a tax credit issued to a member may be the lesser of 50 percent of the member's cash investment or $15,000. Under the program, farmers have 8 years to apply the tax credit, and may transfer or sell the credits. The credit program has a maximum allocation per project of $1.5 million. Three million dollars are available in the program this year, with $6 million/year in subsequent years until 2010. Since enactment, the program has encouraged the development of two new farmer owned ethanol cooperatives.
For more information, contact Tony Stafford, Missouri Agricultural and Small Business Development Authority, 573-526-6827. http://www.mda.state.mo.us/a7a.htm
The text of authorizing legislation H.B.888 is available at http://www.house.state.mo.us/bills99/bills99/hb888.htm |
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