Ethanol Producer Magazine

By Mallorie Wilken

May 10, 2019

Protein is in high demand worldwide. As the demand increases alongside a growing middle class, meeting it will require greater availability of feed protein products for the meat animals we consume.

Traditionally, one cheap source of protein has been distillers grains used in feeding swine, poultry, and dairy and beef cattle. Research has also shown opportunities in feeding it to fish and other aquatic species. Distillers grains’ versatility has increased its global demand for feeding meat animals.

At the same time protein demand is growing, the ethanol industry is maturing and looking for ways to add multiple revenue streams. Diversification is necessary and crucial for plants to remain profitable in this seasoned market.

Concentrated protein distillers grains will be one of the feed products aiding plants in developing new income streams while continuing to provide feed for animals to fulfill global meat consumption. Because each meat animal species has differing nutritional requirements for optimal performance, formulations incorporate feed commodities in various proportions to meet those requirements. While corn has traditionally been the primary commodity to add energy to a diet for swine, poultry and cattle, soybean meal has often been the supplier of protein because it has a more appropriate amino acid profile to meet dietary needs of swine and poultry than corn does.

More recently, distillers grains have been able to replace most of the protein supplement in cattle diets, but this corn protein isn’t as high in lysine content or as balanced in amino acids as soybean meal, and thus cannot make a similar replacement in swine or poultry diets.

High-protein distillers feed products are capable of supplying a larger amount of protein at a lower inclusion level compared to traditional distillers grains. However, it is still corn protein and the ratio of lysine to leucine remains 3:1, compared to 1:1 in soybean meal, which needs to be taken into account. High-protein distillers grains have the potential to replace portions of soybean meal to make the diet more cost effective to the producer while maintaining performance. Further research is being conducted to help us better understand the optimal levels of inclusion of the feed product in each species.

It is important to note that, while valuable, protein is not the only component in distillers grains that offers feeding advantages when added to animal diets. Fiber, fat and other intrinsic properties are additional factors. The bran or fiber portion of corn has roughly 20 percent protein content (dry matter basis). This protein is incredibly valuable in cattle diets as the microbial environment in the rumen is able to digest and utilize this fiber for energy and growth, unlike that of swine and poultry. Cattle producers will often note intake and health benefits of diets containing distillers grains compared to those without the product. Cattle will have more consistent consumption rates and, therefore, less digestive issues. The ability to separate the fiber and protein streams has the potential of directing the feed products to more species-specific commodities and increasing revenue for the plant itself.

When high-protein distillers grains and corn fiber, mixed with condensed distillers solubles such as ICM’s new feed, Fiber&Syrup (FS), are compared to traditional wet or dry distillers grains plus solubles (WDGS or DDGS) in beef cattle diets, animals observed statistically similar performance (see Table 1). Cattle consuming diets with ethanol feed products at 40 percent inclusion (dry matter basis) had similar to greater performance than those fed corn-only diets.

Since the ethanol feed products were fed at levels exceeding the required amount of protein, the cattle were able to utilize the feed as an energy source. This also illustrates that as long as protein requirements are met, cattle will “waste” the protein supplied by ethanol feed products as energy, as shown in Table 1 by the equivalent performance of cattle fed high-protein distillers grains (37 percent crude protein) and FS (32 percent crude protein). If cattle are able to perform similarly with enough but less protein in the diet, we should feed FS in the feed yards and utilize the more concentrated, higher protein products in species like swine and poultry where protein is valuable and expensive.

Fish is a protein source with increasing demand globally for human consumption. This demand shift is providing opportunities for farming fish. High-protein distillers grains have provided increased performance in tilapia when added to diets at either 15 percent or 25 percent inclusion (dry matter basis), as shown in Table 2. Tilapia fed ICM’s high-protein distillers grains at 15 percent or 20 percent observed significantly increased weight yield (0.28 percent and 0.29 percent respectively) compared to those fed a traditional control diet of 0.26 percent. These results suggest an opportunity to feed more concentrated protein ethanol feed products.

As feed and animal production grow to meet protein demand, new requirements and U.S. Food and Drug Administration guidelines will require technology and innovation to address the need for consistency, providing new opportunities to boost an ethanol plant’s bottom line. Consistency and verification will drive customer loyalty to purchase the feed and the price at which they choose to buy, especially as distillers grains transition from an ethanol byproduct to a feed commodity in the minds of animal producers.

The optimal balance for ethanol plants today is met by improving the ethanol production system and increasing revenue through diversified feeds that meet the needs of the local and trade markets. Market conditions are forcing ethanol plants to reevaluate their current production methods toward plant flexibility. Plants must be able to create value in all facets of production, including ethanol, corn oil and feed products. This requires plants to adopt process technologies that separate feed streams and allow the plant to recombine, concentrate, or process each feed to meet demands.

Author: Mallorie Wilkens
ICM Ruminant Technical Lead
402.936.1943
This email address is being protected from spambots. You need JavaScript enabled to view it.

Read the original article: Opportunities in High-Protein Feed

Senator Says Trump Administration Plan to Abandon Promised Transparency Rewards Oil Companies at Expense of Nation’s Renewable Fuel Producers

Senator Tina Smith

May 2, 2019

Press Release

U.S. Senator Tina Smith (D-Minn.) said today the Trump Administration’s plan to go back on its promise to name which U.S. oil refineries are allowed to avoid requirements to blend renewable fuels into the nation’s fuel supply could ultimately contribute to job losses across rural America and strike another blow to the nation’s struggling farm economy.

Sen. Smith, who has been an outspoken advocate to expand the use of renewable fuels, said hiding the identity of refineries that receive special Environmental Protection Agency (EPA) waivers to the nation’s biofuels laws will help big oil companies at the expense of the nation’s renewable industry.

The waivers cut the amount of corn-based ethanol and other renewables that is blended into the nation’s gasoline and diesel supply, reducing demand for agriculture products at a time when farmers have already been hit hard by low farm prices and trade disruptions.

“The EPA promised to increase transparency and publish the names of refineries that get exemptions from our nation’s renewable fuels laws. Now it’s abandoning that promise,” said Sen. Smith.

“The transparency is necessary because last year EPA granted a ‘financial hardship’ waiver to an oil refinery owned by billionaire Carl Icahn, saving him tens of millions of dollars. Such waivers have also gone to refineries owned by profitable oil companies like Exxon-Mobil and Chevron. In 2018, the waivers cut demand for ethanol by more than a billion gallons, according to the Minnesota Biofuels Association. That’s just wrong and it’s hurting Minnesota’s economy.” Sen. Smith said the EPA’s plan to be more transparent was eliminated after the White House and the oil industry pushed to end it.

She said she also remains skeptical of a reported White House-brokered “compromise plan” between the oil industry and corn industry. “I’ll be watching to ensure that any compromise coming out of the Administration does not further hurt Minnesota’s ethanol and renewable fuels industry,” she said.

Read the original article: U.S. Sen. Tina Smith Says EPA Plan to Hide Which Refineries Are Allowed to Stop Blending Renewable Fuels Would Hurt Farmers, Rural Communities

Ethanol Producer Magazine

April 23, 2019

By Lisa Gibson

The 2019 Ethanol Producer Award winners have been selected. Following a nomination period and voting process that included Ethanol Producer Magazine editorial staff and editorial board members, EPM is proud to announce this year’s winners. They are as follows:

Project of the Year: Flint Hills Resources Fairmont in Fairmont, Nebraska. Flint Hills installed Fluid Quip Process Technologies’ Maximized Stillage Coproduct system.

Collaboration of the Year: Homeland Energy Solutions in Lawler, Iowa, and Lallemand Biofuels & Distilled Spirits. The companies implemented a fermentation project together.

Board of the Year: Heartland Corn Products, Winthrop, Minnesota

Workplace of the Year: Arkalon Ethanol, Liberal, Kansas.

Good Neighbor Award: Marquis Energy-Wisconsin, Necedah, Wisconsin.

Read the original article: 2019 Ethanol Producer Award Winners Announced

Ames Tribune

April 12, 2019

By Robbie Sequeira

In order to battle the tough Friday afternoon winds, presidential candidate and Minnesota senator Amy Klobuchar donned a lime-green hard hat and thick pea coat as she toured the Lincolnway Energy Plant in Nevada.

But for the presidential hopeful, battling the wind isn’t the issue, it’s battling major oil companies and Environmental Protection Agency (EPA) small-refinery waivers on behalf of ethanol companies.

The waivers grant a small refinery temporary exemption from its annual Renewable Volume Obligations, which determine how many gallons of biofuel refineries will add to the motor fuel mix.

Following her tour of the ethanol plant, Klobuchar held a roundtable discussion with local ethanol plant producers and ethanol experts to hear the concerns and challenges the ethanol industry is facing.

Ethanol producers stated that small-refinery waivers issued by the EPA are “taking three billion gallons of demand or 20 percent of demand from the ethanol industry.”

“I think part of (this discussion) is taking on the oil companies and blatantly talking about it,” Klobuchar said. “Yeah, they have their market, but (ethanol) has their market, too, and they are trying to stomp on us and we need to speak out or we don’t have a chance.”

In terms of policy, Klobuchar said, “replacing the gallons lost” in the industry is important, as well as promoting cellulosic ethanol, ethanol produced from the fiber of a plant as a means to help recoup losses suffered in the past years.

Klobuchar also vouched for protecting and addressing how the waivers affect the Renewable Identification Numbers (RIN) market and the year-round sale of gasoline with up to 15 percent ethanol, also known as E15.

RIN is a serial number assigned to a batch of biofuel that act as credits of compliance or a type of currency of the Renewable Fuel Standard Program.

One of the concerns expressed Friday was that that small refinery exemptions issued by former EPA Administrator Scott Pruitt eroded demand for ethanol in 2018 and created the RIN market for ethanol.

?(One of the things we can do) is the RIN market, and making sure it’s functioning and addressing whatever the problems are,” Klobuchar said. “We know that people are going to mess around with it, and those waivers mess around with it, too.”

In 2018, President Trump directed the Environmental Protection Agency (EPA) to consider reforming the RIN market, and to allow the year-round sale of E15.

However, many at the roundtable said that the EPA small refinery waivers and exemptions have been overused, threatening demand for corn-based ethanol at a time when farmers are already struggling.

“We don’t make a fraction of a cent on RINs,” said Blair Picard, Commercial Manager of Lincolnway Energy. “Our RINs go out the door free with our ethanol,so you could say on one hand, we’re not as concerned with the price of RINs as we are with the price of ethanol and our margin, which both have deteriorated as a direct example of these small refinery exemptions.”

Klobuchar blended the concerns of ethanol producers with the “immediate need” to address climate change and environmental issues.

The senator said she would address climate change on day one by entering the United States back into the international climate change agreement, bringing back the clean power standards adopted under the Obama Administration, and re-implementing gas mileage standards.

“I’m a strong believer that we have to do something about climate change on day one,” Klobuchar said following the roundtable discussion. “Those are rules so they are easier to put (out for a vote), and you may have comment periods, but you can get those done in the first year.”

Klobuchar also shared her visions to get to universal health care through a public health insurance option.

Read the original article: Klobuchar Talks Ethanol Challenges at Nevada Plant