In the News
Jan 22, 2015
By Dounglas A. Durante
There is an old saying that the only things that are certain in life are death and taxes. However, we must add to that list the certainty that each Congress Sen. Dianne Feinstein (D-Calif.) will continue her inexplicable crusade against corn ethanol by introducing legislation, amendments, riders, and other measures to tear down one of the great American success stories in an otherwise miserable legacy of energy policy. The current iteration is an amendment to the Keystone Pipeline legislation.
What is so troubling about the Senator's vendetta is the complete and blatant misinformation used to support the attack. It is curious, and troubling, that in the face of absolute and unimpeachable facts, she continues. In her latest effort to attack ethanol she has enlisted Pennsylvania Sen. Pat Toomey (R) who cites the same misinformation. And make no mistake, this is an attack on ethanol. The notion that corn ethanol could be eliminated from the RFS and this would magically open the door for non-corn feedstocks is preposterous and beyond naive.
But again, lets look at the facts and motives. To begin with, there is no such thing as a "corn ethanol mandate." In fact there is no ethanol mandate of any kind. The Renewable Fuel Standard, which Feinstein voted for in 2008, requires a certain amount of renewable fuels be used. Compliance is met by using a range of fuels from a range of feedstocks, and the list is growing. Biogas from landfills and even electricity from biomass can be used. Ethanol, from corn or otherwise, is an eligible fuel and is used by refiners at their choice and discretion. Ethanol is a critical component of reformulated gasoline and has been largely responsible for eliminating carbon monoxide violations, with all areas of the country now in attainment after using ethanol to oxygenate gasoline. It is used as a clean octane additive to replace toxic compounds including carcinogens like benzene used by the petroleum industry. No one is required to use ethanol but it is chosen because it is a cost effective gasoline additive, period. So any legislation to "remove the corn ethanol mandate" could in theory be passed because there is no such thing.
Joining Feinstein in this effort is Toomey who, sadly, seems to have the same briefing book of misinformation. He cites ethanol driving up gasoline prices when it is and has been less expensive and makes up more than 10 percent of the nations fuel supply. He then states it increases food costs which has been so refuted we do not have the space here to even begin to argue that. Suffice it to say corn is less expensive now than it was before the RFS so it defies any degree of spin to say the program has driven up prices of grain or food. He then states it harms engines-- again, a Pinocchio-like canard. Every automaker in the world honors the use of 10 percent ethanol blends and nearly 80 percent of the cars on the road today are approved for 15 percent blends. Small engines and even marine engines are approved for ethanol . Finally, he states it harms the environment when EPA has clearly stated ethanol is at minimum 20 percent less than gasoline in terms of reducing greenhouse gas emissions. Recent research we have conducted shows that is selling corn ethanol short and the true carbon reductions should put it in an advanced category. It reduces particulates, toxics, sulfur, and a range of harmful emissions. So of the four reasons the Senator cites for his opposition, none are based in fact. None.
As for Feinstein, to say the intent of the RFS was to support the development of cellulosic biofuels, that is certainly true. But the road to those fuels is paved by the corn ethanol industry and to advance those fuels at the expense of what has been an unqualified success is just plain wrong. If these Senators want to help cellulosic ethanol, there are a number of things they can do besides attacking corn ethanol. How about introducing legislation to provide meaningful, effective incentives to automakers to make all cars flex fuel, capable of operating on any blend of ethanol so we have somewhere to put the fuel? Or legislation to clarify the intent of the Clean Air act with respect to reducing toxic aromatic compounds in gasoline, creating a market for clean ethanol as an octane additive.
It is discouraging to the entire biofuels industry to see good people operating with bad information. With 13 new senators and 58 new members of the House, don't they deserve to get facts? At what point do opponents of corn ethanol stop pretending they did not know that every argument raised by the oil companies -- who are only trying to protect their market monopoly - - are without merit. There is no credible argument to support these anti-ethanol positions and every reason to stay the course.
Durante is executive director of the Clean Fuels Development Coalition
Read the original story here : The Ongoing Attack On Ethanol
Global Renewable Fuels Alliance
Jan 20, 2015
TORONTO, Canada – Today, the Global Renewable Fuels Alliance (GRFA) applauded FAO (Food and Agriculture Organization of the United Nations) Director-General Jose Graziano da Silva for his support of biofuels as a key part of the global agriculture complex at the Global Forum for Food and Agriculture that took place January 15 – 17 in Berlin.
The Global Forum for Food and Agriculture is an annual international conference that focuses on central questions concerning the future of the global agri-food industry. This year’s theme was “The Growing Demand for Food, Raw Materials and Energy: Opportunities for Agriculture, Challenges for Food Security?”
Throughout his remarks, the Director-General praised biofuels for their social, agricultural and environmental benefits and the necessity for agriculture to accommodate both food and fuel.
“We applaud the FAO Director-General for the stating what over 62 countries with biofuel friendly policies have known for years – that biofuels deliver much needed rural jobs, significantly curb green house gas emissions, reduce our reliance on crude oil, and encourage energy diversity, “ stated Bliss Baker, spokesperson for the GRFA.
According to the GRFA, global biofuels production is making a significant contribution to the global economy, having contributed $277.3 billion and supported nearly 1.4 million jobs in all sectors of the global economy in 2010. By 2020 the global biofuel industry is forecasted to grow to support over 2.2 million jobs in all sectors of the global economy.
Additionally, according to F.O. Licht, global ethanol production was forecasted to reach 90.38 billion litres in 2014 and its use worldwide would reduce GHG emissions by over 106 million tonnes globally, equal to removing 21 million cars – the equivalent of all the cars registered in Malaysia – off the road annually
The Director-General also stressed the need to shift to sustainable agriculture systems, achieving greater efficiencies in their use of natural resources, in particular water, energy and land, to allow room for both food and fuel.
Read the original story here : Biofuels Should Be Part Of The Mix : FAO Director-General
Jan 20, 2015
By Andrew Noel
Novozymes A/S, the world’s largest maker of enzymes used in biofuel to washing powder, said the market for second-generation ethanol plants that run on agricultural waste can withstand the current fall in oil prices.
If the price of oil sank to about $40 a barrel over the long term, demand for so-called 2G technology would be effected, according to Chief Executive Officer Peder Nielsen. Demand for biofuel enzymes increased 10 percent in the fourth quarter, bolstering profit in the period.
Novozymes, which opened a 2G ethanol plant in Italy in October 2013, is betting that depressed prices for oil, a key cost component in corn farming, will rub off on the cost of the crop, helping to improve its competitiveness. Added to that, is the environmental awareness that will be raised with the United Nations Climate Change Conference in Paris this year, Nielsen said.
“If oil were to stay at $40 forever, then I would argue that the value of the option we are offering would get smaller,” Nielsen said in a phone interview. “I think it will climb back up to $80 a barrel. Oil is the main input for corn. It’s not a given that corn gets expensive.”
Novozymes expects the volume of first-generation ethanol that uses crops, rather than crop-waste, to remain at steady levels in 2015. The Bagsvaerd, Denmark-based company had envisaged supplying 15 second-generation ethanol plants by 2017 when it inaugurated the plant in Crescentino, Italy. That may now take until 2020, Nielsen said.
Read the original story here : Novozymes Chief Says 2G Ethanol Market Can Endure Oil Price Drop
Jan 16, 2015
By Holly Jessen
The ethanol industry is reacting to efforts in the U.S. Senate to add an amendment to the Keystone pipeline bill to alter the renewable fuel standard (RFS).
Sens. Dianne Feinstein, D-Calif., and Pat Toomey, R-Pa., have attached an amendment that would eliminate corn ethanol from the RFS to the Keystone bill that is currently before the Senate.
Bob Dinneen, president and CEO of the Renewable Fuels Association, released the following statement:
“The Feinstein/Toomey amendment is founded upon a false premise. The sponsors claim the so-called corn ethanol mandate drives up the price of corn, food, and gas. The fact of the matter is that corn is less expensive today than when the RFS was passed in 2007. There is simply no truth to the notion that ethanol has driven up the price of food. In fact, the UN concluded that food prices are driven more by the price of energy than the cost of commodities. To that point, ethanol has been less expensive than gas for the better part of the past four years and has helped reduce consumer pain at the pump.
“This amendment is an unnecessary solution to an imaginary problem. If approved, it would set our nation’s energy, economic, and climate agenda back decades.”
A statement from Tom Buis CEO of Growth Energy, said:
“This legislation is incredibly shortsighted. Nearly identical legislation has been introduced in the past and has always failed to gain any traction since a majority of Senators understand the importance of homegrown American renewable fuels. This amendment would eviscerate the RFS - the most successful energy policy enacted in the last 40 years. It will continue to keep us addicted to foreign oil and more than anything, it seems like this legislation is appeasing the wishes of Big Oil and Big Food.
“Additionally, this legislation is based on false, misleading information. To blame ethanol for an increase in the price of food may make for good rhetoric, but it is completely devoid of any facts to back it up. Corn ethanol is not the cause of high prices; it is the price of oil. Even the World Bank outlined how crude oil prices are responsible for over 50 percent of the increase in food prices since 2004. Countess studies have shown that oil prices, Wall Street speculators and the high costs of manufacturing, packaging and transportation are the true culprits driving up food prices. Furthermore, 2014 yielded a record corn crop and the price of corn dropped precipitously throughout the harvest, even as food costs increased.
“The authors of this legislation fail to understand the actual process of how ethanol is produced," Buis said. "Only the starch is removed, while all of the valuable components – the fiber, oil and protein is returned to the food chain in the form of a high protein animal feed.
The statement went on to point to ethanol's environmental benefits and called it a "concession to the demands of Big Oil and Big Food."
Read the original story here : RFS Amendment Would Set U.S. Energy Agenda Back Decades
Jan 13, 2015
By Erin Voegele
The U.S. Energy Information Administration has released the January issue of its Short-Term Energy Outlook, which includes its first short-term prediction of 2016 ethanol production levels.
Within the STEO, the EIA reported ethanol production in December reached a record of 979,000 barrels per day, exceeding the previous record of 968,000 barrels per day set in November. Ethanol production averaged approximately 935,000 barrels per day last year, and is expected to average 936,000 barrels per day this year. In 2016, the EIA predicts ethanol production will increase to 937,000 barrels per day.
According to the EIA, biodiesel production averaged 81,000 barrels per day last year and is forecast to average 84,000 barrels per day this year and in 2016.
EIA data indicates weekly regulator gasoline retail prices averaged $2.14 per gallon on Jan. 12, the lowest since May 4, 2009. The EIA predicts gasoline prices will average $2.16 per gallon during the first quarter of this year, and average $2.33 per gallon in 2015. Gasoline prices averaged $3.36 per gallon last year. In 2016, gasoline prices are expected to increase, averaging $2.72 per gallon.
The EIA’s most recent weekly ethanol production data indicates production averaged 949,000 barrels per day the week ending Jan. 2, down from 972,000 barrels per day the week ending Dec. 26. The U.S. set a new weekly production record during the week ending Dec. 19, when production averaged 992,000 barrels per day.
The U.S. exported nearly 1.89 million barrels of ethanol in October, and increase from the 1.35 million barrels exported in September. The U.S. also imported 30,000 barrels of ethanol in October, up from 7,000 barrels in September.
Read the original story here : EIA Predicts Increased Ethanol Production In 2015 and 2016
Jan 12, 2015
By Holly Jessen
A Minnesota ethanol producer is having success with its efforts to provide E85 directly to gas retailers, bringing lower-priced E85 to Minnesota drivers. In fact, on Jan. 12, the Cenex gas station in Alexandria, Minnesota, was selling E85 for only 85 cents a gallon, exactly $1 cheaper than E10, as part of an E85 price agreement with DENCO II, an ethanol plant in Morris, Minnesota.
The 24 MMgy plant first installed a blending skid in 2011. “It’s definitely the right thing to do for the industry and for the consumers in the local market,” said Carson Berger, commodities risk manager of the ethanol plant.” We have the fuel right here.”
The company grew its direct sales program from a very small percent of production to about 10 percent. And it's still growing. “Over past year we have more than doubled our E85 sales and we have plans to double it again,” he said, adding that it has provided the company with added marketing flexibility.
In all, DENCO II supplies E85 directly to 45 gas stations. The company sends out its prices in a daily email, direct to station owners and sells E85 on a daily or contract basis, he said. Other Minnesota ethanol plants that provide E85 direct to retailers include Chippewa Valley Ethanol Co., Bushmills Ethanol Inc. and a Poet LLC plant.
Thirteen stations are part of DENCO II’s price promotion, which started April 2013 and will continue at least through March, Berger told Ethanol Producer Magazine. Like the Cenex station in Alexandria selling E85 for 85 cents, the gas stations sell DENCO II E85 for $1 less than E10. As of Jan. 9, three gas stations in Morris, where the plant is located, were selling E85 for 95 cents and E10 for $1.95. Other west central Minnesota gas stations that are part of the price promotion include Glenwood, Hancock and Wheaton.
As a blender, DENCO II separates and sells renewable identification numbers (RINs), which allows the company to sell E85 for less to retailers, enabling retailers to sell E85 for less to consumers. According to the Jan. 12 Atlas Markets daily price email, RINs are currently priced between 71 to 75 cents for 2013 and 2014 D6 RINs. Because DENCO collects 100,000 or more RINs in a month, it can more easily wade into the RINs market than a gas retailer could, Berger said, adding that, “it’s difficult to sell RINs in smaller lots.”
The direct sales program isn’t as simple as just installing a blending skid at the plant, notifying area gas stations about E85 prices from the plant and hoping for success, Berger said. The company has put a lot of work in, developing relationships with retailers and getting them on board with E85. Retailers who are used to selling regular gas need education about new fuel blends and help with marketing. DENCO II works with Growth Energy to supply the stations with the information and material they need to market E85 and other ethanol blends properly.
Selling E85 to gas retailers hasn’t only been successful for the ethanol plants. “We’ve seen stations increase their sales volume by 700 percent,” he said, adding that with the current low E85 prices, retailers are seeing ripple effects. “The consumer has more dollars in their pocket and retailers have found that some of the savings on the fuel side will come into the store and be spent on retail goods, like candy bars and pop,” he said.
Read the original story here : Ethanol Plant Brings 85 cent E85 To Minnesota
Jan 8, 2015
Gevo Inc, the world's only commercial producer of renewable isobutanol, today reported an update on the progress of the Side-by-Side operational mode (SBS) of its plant in Luverne, MN.
In June 2014, Gevo commenced the co-production of isobutanol and ethanol at Luverne, with one fermenter dedicated to isobutanol production and three fermenters dedicated to ethanol production. Gevo had articulated a goal of reaching isobutanol production levels of 50-100 thousand gallons per month by the end of 2014. In the month of December, Gevo produced over 50 thousand gallons of isobutanol, meeting the Company's stated goal.
Other key highlights since the last plant update provided in Gevo's third quarter earnings release include:
Implementation of a second-generation yeast isobutanol biocatalyst at Luverne that significantly improves plant operability.
Increased the isobutanol fermentation rate by approximately 20% versus the best performing batch using the first-generation yeast.
Can produce in operating conditions that enable further mitigation of potential infections, as well as the improved management of the iDGs animal feed co-product.
This second-generation yeast platform, which is a product of a new yeast modification capability developed by Gevo, speeds up the development and implementation of new traits in Gevo's yeast through high-speed combinatorial techniques.
NAPA Myers Auto Parts began selling off-road fuel developed by Gulf Racing Fuels containing blends of up to 16% of Gevo's renewable isobutanol in North Dakota, South Dakota, Wyoming, Montana, and Minnesota for use in boats, ATVs, motorcycles and snowmobiles.
"We are very pleased to have achieved our milestone of producing over 50 thousand gallons of isobutanol in a month, while continuing the co-production of ethanol. Since announcing in March 2014 that we would be switching Luverne over to SBS, we have consistently met our operational targets. I would like to thank the entire Gevo team for all of their hard work in continuing to prove out isobutanol production at a commercial scale. We are also extremely excited to have implemented our new yeast biocatalyst at Luverne. We believe that this yeast platform will enable even greater progress of our commercial isobutanol production," said Dr. Patrick Gruber, Gevo's CEO.
"The anticipated benefits of switching Luverne to SBS have borne out. Producing alcohol in all four fermenters improves the operating environment for the optimization of our isobutanol production by creating a continuous and stable mash flow and a more consistent recycle of water through the plant. SBS has also dramatically improved the cash flow profile of the plant. In fact, we estimate that the plant operated at roughly an EBITDA breakeven level in November. Overall, we believe that we have made tremendous progress in proving out our isobutanol technology for potential licensees," Gruber added.
"We are also very encouraged by the enthusiasm of the market to adopt Gulf Racing Fuels' gasoline blends with Gevo's renewable isobutanol for marine and off-road applications. These are ideal markets to demonstrate isobutanol's beneficial properties and set the stage for entry into the larger on-road market," he said.
Read more about Gevo here
Jan 6, 2015
By Robert White
Every week I hear from consumers with questions on ethanol and what it does to their fuel. Most don’t understand that the composition of gasoline, along with the refining process, has changed dramatically over the past two decades. They automatically assume that anything negative has to be caused by ethanol. Nearly all of them will admit that nothing has happened to them, but they have been told a story, or seen an advertisement that made them nervous. Many companies have jumped on this fear and the anti-ethanol movement. When Big Oil spends millions to denounce ethanol, it creates an opportunity to sell products to consumers they don’t truly need.
This year at Sturgis I found an “octane enhancer” bottle near our fueling position. RFA was again giving away free 93 octane E10 (10% ethanol) to riders. Our summer intern that was filling the tank said someone was through and was concerned the ethanol didn’t have enough octane, and added this product before he left. My curiosity got the best of me, and I had to know what the secret ingredient was for this product. The AMSOIL Dominator Octane Boost wasn’t trying to hide it; ingredients were listed on the back. The product is 60–100% #2 diesel. You can read the MSDS Sheet here. Let’s think about this for a second. This gentleman was trying ethanol-blended fuel, supposedly for the first time, and due to his fear, AMSOIL had convinced him to add #2 diesel to his motorcycle’s fuel tank? We didn’t see the man again, but I did wonder what he would blame if he had issues... the ethanol, the gasoline or the diesel?
Recently, I spotted someone promoting a new product on Twitter. This product, BG Ethanol Fuel System Drier, claims that it “defends engines against the water that accumulates in ethanol-blended fuel.” The supplier advertising on Twitter claimed it “goes in ethanol & absorbs moisture to prevent freezing.” When I pointed out the fact that is what ethanol does for gasoline, they quickly responded with an “awesome, thanks” and blocked me from seeing their future Tweets. But, my curiosity got the best of me again, and I went hunting for more information on this product. I easily found the MSDS Sheet and found that this product is 60–100% alcohol. So, again, the consumers that are concerned with the amount of ethanol (alcohol) in their fuel are being marketed by BG to add more alcohol? That this product will cure a problem that doesn’t exist, that ethanol has already remedied? Just to further my point, in just 5 minutes of research, I collected this list of products that contain over 60% alcohol that claim to fix an ethanol issue:
Evinrude 2-4 Fuel Conditioner
Formula X2
K100 Fuel Treatment
Consumers are faced with a barrage of information dailty, but one thing is consistent. They should all do their own research. I understand that convincing people to read an MSDS sheet is not ever going to be easy, but the label is a good start. RFA will continue its efforts to add more transparency to the marketing of the additive manufacturers. The best advice to give to consumers is for them to read their owner's manuals and follow the advice of the company that provides the warranty, and built the product. Not someone trying to sell you some snake oil.
Read the original story here : Read The Label!
Every week I hear from consumers with questions on ethanol and what it does to their fuel. Most don’t understand that the composition of gasoline, along with the refining process, has changed dramatically over the past two decades. They automatically assume that anything negative has to be caused by ethanol. Nearly all of them will admit that nothing has happened to them, but they have been told a story, or seen an advertisement that made them nervous. Many companies have jumped on this fear and the anti-ethanol movement. When Big Oil spends millions to denounce ethanol, it creates an opportunity to sell products to consumers they don’t truly need.
This year at Sturgis I found an “octane enhancer” bottle near our fueling position. RFA was again giving away free 93 octane E10 (10% ethanol) to riders. Our summer intern that was filling the tank said someone was through and was concerned the ethanol didn’t have enough octane, and added this product before he left. My curiosity got the best of me, and I had to know what the secret ingredient was for this product. The AMSOIL Dominator Octane Boost wasn’t trying to hide it; ingredients were listed on the back. The product is 60–100% #2 diesel. You can read the MSDS Sheet here. Let’s think about this for a second. This gentleman was trying ethanol-blended fuel, supposedly for the first time, and due to his fear, AMSOIL had convinced him to add #2 diesel to his motorcycle’s fuel tank? We didn’t see the man again, but I did wonder what he would blame if he had issues... the ethanol, the gasoline or the diesel?
Recently, I spotted someone promoting a new product on Twitter. This product, BG Ethanol Fuel System Drier, claims that it “defends engines against the water that accumulates in ethanol-blended fuel.” The supplier advertising on Twitter claimed it “goes in ethanol & absorbs moisture to prevent freezing.” When I pointed out the fact that is what ethanol does for gasoline, they quickly responded with an “awesome, thanks” and blocked me from seeing their future Tweets. But, my curiosity got the best of me again, and I went hunting for more information on this product. I easily found the MSDS Sheet and found that this product is 60–100% alcohol. So, again, the consumers that are concerned with the amount of ethanol (alcohol) in their fuel are being marketed by BG to add more alcohol? That this product will cure a problem that doesn’t exist, that ethanol has already remedied? Just to further my point, in just 5 minutes of research, I collected this list of products that contain over 60% alcohol that claim to fix an ethanol issue:
- See more at: http://www.ethanolrfa.org/exchange/entry/read-the-label/#sthash.tbYCsc3U.dpufMore...
Dec 29, 2014
By Sussane Retka Schill
The U.S. ethanol industry is closing out 2014 with a bang, as the ethanol industry has set weekly production records in four of the last five weeks. The U.S. Energy Information Administration reported another week of record-breaking production at 992,000 barrels per day (bbl/d) for the week ending Dec. 19.
U.S. ethanol producers have steadily been ramping up production in recent weeks. According to the EIA, production for the week ending Dec. 12 was 990,000 bbl/d, for the week ending Dec. 5, 988,000 bbl/d, and for the week ending Nov. 21, 982,000 bbl/d. Those production figures top the prior record set earlier this year on the week ending June 13 with its average of 972,000 bbl/d.
“The most recent weekly data indicates the industry was operating at an annualized rate of more than 15.2 billion gallons per year,” said Geoff Cooper, senior vice president of the Renewable Fuels Association. “2014 will be a record year for annual output, with approximately 14.31 billion gallons of production--that eclipses the previous record of 13.93 billion gallons in 2011.”
Ethanol stocks were holding steady in the last couple of weeks. The EIA reported stocks on hand for the week ending Dec. 19 at 17.6 million barrels, down slightly from the previous week’s ending stocks of 17.7 million barrels. The Dec. 19 ending stocks were up 15.7 percent from the number for the same week last year, which was 15.7 million barrels (the lowest stocks since 2009), and down 13.3 percent from the stocks in the same week two years ago, which numbered 20.3 million barrels. The all-out production levels of 2011 led to price-depressing ethanol stocks in 2012, the peak set in March 2012 at 22.58 million barrels.
Current stocks are not yet climbing, Cooper said, because “unprecedented ethanol consumption, particularly from the export market, is keeping ethanol stocks in check and ensuring a good supply-demand balance is maintained in the marketplace. Stocks are about 5 percent lower than they were in September, yet production is up about 9 percent since then. Domestic blending demand has picked up in recent weeks too, as ethanol input by U.S. refiners and blenders hit a 10-week high last week.”
In the Dec. 9 Short-Term Energy Outlook, EIA said ethanol production in November reached a monthly average record of 963,000 bbl/d, exceeding the previous record of 959,000 bbl/d set in December 2011. By the end of November, EIA expected ethanol production to average 931,000 bbl/d in 2014 and 948,000 bbl/d in 2015. With the first three weeks of December setting new records, those numbers are likely to ratchet up a bit more.
“The recent production levels should definitely put to rest any notion that the industry can’t produce enough ethanol to meet statutory RFS requirements for 2015 and beyond of 15 billion gallons,” Cooper added.
Read the original story here : US Ethanol Production Runs Full Bore, Sets Record As 2014 Ends
Dec 23, 2014
The Central MN Ethanol Co-op in Little Falls, Minn., has been purchased by Green Biologics Inc., which plans to convert the 21-million-gallon-per-year plant to produce renewable normal butanol, also known as n-butanol, and acetone.
The plant will continue to produce ethanol for the time being, with n-butanol and acetone production beginning in 2016. Its current management and employees will remain.
Green Biologics is a wholly owned U.S. subsidiary of Green Biologics Limited, a UK-based industrial biotechnology and renewable chemicals company.
“We are extremely pleased with the successful closing and look forward to the leadership role that Green Biologics will play in bringing renewable chemicals to commercial reality,” Dana Persson, CEO of Central MN Ethanol Co-op, says in a written statement.
The acquisition was made through Central MN Renewables LLC, an affiliate of Green Biologics.
“This is a great opportunity to help Minnesota maintain its leadership position in renewables, and kick start a new renewable chemicals industry in the state,” Joel Stone, president of Green Biologics Inc. and Central MN Renewables, says in a statement. “We’re pleased with the local and state support from Minnesota, and we’re particularly enthusiastic about the incredibly positive energy from our new team of employees and managers at CMR. We’re also grateful to our corn growers and we look forward to producing clean, renewable chemicals from Minnesota corn.”
N-butanol is used in the production of high-value derivatives such as butyl acrylates, butyl glycol ethers, butyl acetate, amino resins and plasticizers.
Acetone is used in the production of several high-value products, particularly as a solvent in paints, coatings, adhesives, ink, cosmetics, pharmaceuticals, electronics and laboratory chemicals.
Green Biologics Ltd., based in Abingdon, England, has a process that converts a wide range of sustainable feedstocks into green chemicals.
The ethanol plant, established in 1995, purchases about 7.5 million bushels of corn annually. It generates income from ethanol and ethanol co-products, including dried distillers grains, wet distillers grain, corn oil and syrup.
Read the original story here : Minn. Ethanol Plant Sold ; New Use Planned
The Central MN Ethanol Co-op in Little Falls, Minn., has been purchased by Green Biologics Inc., which plans to convert the 21-million-gallon-per-year plant to produce renewable normal butanol, also known as n-butanol, and acetone.
The plant will continue to produce ethanol for the time being, with n-butanol and acetone production beginning in 2016. Its current management and employees will remain.
Green Biologics is a wholly owned U.S. subsidiary of Green Biologics Limited, a UK-based industrial biotechnology and renewable chemicals company.
“We are extremely pleased with the successful closing and look forward to the leadership role that Green Biologics will play in bringing renewable chemicals to commercial reality,” Dana Persson, CEO of Central MN Ethanol Co-op, says in a written statement.
The acquisition was made through Central MN Renewables LLC, an affiliate of Green Biologics.
“This is a great opportunity to help Minnesota maintain its leadership position in renewables, and kick start a new renewable chemicals industry in the state,” Joel Stone, president of Green Biologics Inc. and Central MN Renewables, says in a statement. “We’re pleased with the local and state support from Minnesota, and we’re particularly enthusiastic about the incredibly positive energy from our new team of employees and managers at CMR. We’re also grateful to our corn growers and we look forward to producing clean, renewable chemicals from Minnesota corn.”
N-butanol is used in the production of high-value derivatives such as butyl acrylates, butyl glycol ethers, butyl acetate, amino resins and plasticizers.
Acetone is used in the production of several high-value products, particularly as a solvent in paints, coatings, adhesives, ink, cosmetics, pharmaceuticals, electronics and laboratory chemicals.
Green Biologics Ltd., based in Abingdon, England, has a process that converts a wide range of sustainable feedstocks into green chemicals.
The ethanol plant, established in 1995, purchases about 7.5 million bushels of corn annually. It generates income from ethanol and ethanol co-products, including dried distillers grains, wet distillers grain, corn oil and syrup.
- See more at: http://www.agweek.com/event/article/id/24691/#sthash.JO4KmxpR.dpufThe Central MN Ethanol Co-op in Little Falls, Minn., has been purchased by Green Biologics Inc., which plans to convert the 21-million-gallon-per-year plant to produce renewable normal butanol, also known as n-butanol, and acetone.
The plant will continue to produce ethanol for the time being, with n-butanol and acetone production beginning in 2016. Its current management and employees will remain.
Green Biologics is a wholly owned U.S. subsidiary of Green Biologics Limited, a UK-based industrial biotechnology and renewable chemicals company.
“We are extremely pleased with the successful closing and look forward to the leadership role that Green Biologics will play in bringing renewable chemicals to commercial reality,” Dana Persson, CEO of Central MN Ethanol Co-op, says in a written statement.
The acquisition was made through Central MN Renewables LLC, an affiliate of Green Biologics.
“This is a great opportunity to help Minnesota maintain its leadership position in renewables, and kick start a new renewable chemicals industry in the state,” Joel Stone, president of Green Biologics Inc. and Central MN Renewables, says in a statement. “We’re pleased with the local and state support from Minnesota, and we’re particularly enthusiastic about the incredibly positive energy from our new team of employees and managers at CMR. We’re also grateful to our corn growers and we look forward to producing clean, renewable chemicals from Minnesota corn.”
N-butanol is used in the production of high-value derivatives such as butyl acrylates, butyl glycol ethers, butyl acetate, amino resins and plasticizers.
Acetone is used in the production of several high-value products, particularly as a solvent in paints, coatings, adhesives, ink, cosmetics, pharmaceuticals, electronics and laboratory chemicals.
Green Biologics Ltd., based in Abingdon, England, has a process that converts a wide range of sustainable feedstocks into green chemicals.
The ethanol plant, established in 1995, purchases about 7.5 million bushels of corn annually. It generates income from ethanol and ethanol co-products, including dried distillers grains, wet distillers grain, corn oil and syrup.
- See more at: http://www.agweek.com/event/article/id/24691/#sthash.JO4KmxpR.dpufBy Sussane Retka Schill
Dec 19, 2014
An analysis of conventional and alternative vehicles and their air pollution-related public health impacts from researchers at the University of Minnesota got a swift debunking from the ethanol industry. The university researchers found electric vehicles could reduce the deaths from air pollution by 70 percent and concluded the use of corn ethanol or electricity from coal is worse than gasoline for public health.
The co-authors of the report, published in the Dec. 15 Proceedings of the National Academy of Sciences, were Bioproducts and Biosystems Engineering assistant professor Jason Hill and Chris Tessum, a researcher in the Department of Civil, Environmental and Geo-Engineering.
The team look at how particulate matter (PM) and ground-level ozone change as a result of using various options for powering vehicles, and included not only tail-pipe emissions but a life-cycle analysis (LCA).
The Renewable Fuels Association released a three-page analysis that says the paper’s conclusions “…stand at odds with real-world data showing decreases in ozone and PM2.5 concentrations...” and that “Data from 222 EPA sensing sites show that ozone and PM2.5 concentrations have trended downward during the period in which the use of ethanol-blended gasoline has dramatically increased.”
The RFA response goes on to show that “On a full lifecycle basis, the study’s results are contradictory to the results from the Department of Energy’s latest GREET model” and that “There is a substantial body of evidence proving that ethanol reduces both exhaust hydrocarbons and CO emissions, and thus can help reduce the formation of ground-level ozone.”
The study’s reliability is also called into question as it omitted key factors when reaching conclusions on the environmental impact of gasoline and electric vehicles. RFA points out that the University of Minnesota conclusion “…excludes NOx and SOx emissions associated with crude oil extraction, a decision that grossly underrepresents the actual lifecycle emissions impacts of gasoline.” RFA concluded, “Omitting key emissions sources from the lifecycle assessment of EVs and crude oil inappropriately skews the paper’s results for the overall emissions impacts of these fuels and vehicles.”
The Minnesota Biofuels Association echoed RFA’s response. “While the U of M's report states that [ozone and particulate matter] increase with ethanol usage, data from the EPA suggests otherwise. According to the EPA, the amount of ozone in the air has decreased 18 percent from 2000 to 2013. In the Upper Midwest, ozone levels have fallen 11 percent during the same time period. Similarly, particulate matter has decreased 34 percent nationwide from 2000 to 2013. It is important to note that the drop in ozone and particulate matter coincide with the increase in ethanol blended gasoline.”
Growth Energy’s statement following the release of the report added to the critiques from another angle. “This report also fails to account for the numerous environmental benefits ethanol provides,” the Growth Energy statement said. “According to Argonne National Laboratory, ethanol reduces greenhouse gas (GHG) emissions by an average of 34 percent compared to gasoline, even when the highly controversial and disputed theory on indirect land use change (ILUC) is factored into the modeling ... Argonne has found that without ILUC included, ethanol reduces GHG emissions by 57 percent compared to gasoline.”
Read the original story here : Industry Debunks Minn. Report Shedding Bad Light On Corn Ethanol
Dec 19, 2014
The Urban Air Initiative is challenging the findings in a recent University of Minnesota study that claims ethanol is more polluting than gasoline, calling it an intellectually dishonest effort.
“These are baseless and quite frankly irresponsible conclusions that gasoline is cleaner than ethanol. The study utterly failed to consider a vast body of research by auto industry and health experts that conclusively show gasoline aromatic hydrocarbons are the primary source of the most dangerous urban pollutants,” said UAI President David VanderGriend. “The aromatics—which comprise 25 – 30 percent of U.S. gasoline—are responsible for a wide range of serious health effects, including autism, cancer, and heart disease.”
Ethanol is a source of clean, low carbon octane that is used in federal reformulated gasoline in major U.S. cities. Although it is not required, refiners choose ethanol for its clean burning properties and its ability to help them meet emission standards. Carbon monoxide exceedances have essentially been eliminated in the U.S. due to the presence of ethanol and ozone violations are at the lowest levels in history. According to the EPA, the amount of ozone in the air has decreased 18 percent from 2000 to 2013.
“Urban air pollution, and specifically summertime smog or ozone, is a mix of volatile organic compounds, carbon monoxide, particulates, NOx, and countless other factors. Gasoline itself is a toxic soup of chemicals but as we add ethanol we clean up that gasoline and protect public health,” said VanderGriend.
He noted that outdated models used by the U.S. Environmental Protection Agency fail to recognize the value of higher blends of ethanol. Yet, UAI fuel testing confirms that higher blends of ethanol, such as a 30 percent blend, if made by simply adding ethanol to a base fuel already containing ethanol, would significantly lower vapor pressure and provide clean octane. Regardless of deficiencies in EPA modeling, the fact that ethanol is in all U.S. gasoline and ozone levels are decreasing speaks for itself, say UAI researchers.
“We continue to bring our data and real world experience with ethanol to the EPA and hope they can join us in challenging these types of studies that fail to do their homework," said VanderGriend.
Read the original story here : Urban Air Initiative Calls University of Minnesota Study On Ethanol Seriously Flawed
Dec 17, 2014
WASHINGTON, D.C. — This Friday marks the seventh anniversary of the signing into law of the Energy Independence and Security Act of 2007 (EISA). The law expanded the Renewable Fuel Standard (RFS) and set America on a path toward a cleaner, more energy-independent future. The Renewable Fuels Association (RFA) compiled a report that examines the impact of the RFS over the past seven years on the economy, job creation, agriculture, the environment, fuel prices, petroleum import dependence, and food prices.
EISA was approved in the Senate by a vote of 86–6 and passed the House of Representatives by a vote of 314–100. After gaining Congressional approval, the legislation was signed into law by President George W. Bush on Dec. 19, 2007. It greatly expanded the scope and range of the RFS by setting a timeline for increased amounts of renewable fuels to be blended into America’s fuel supply each year.
“The RFS was always intended to be a marathon and not a sprint. Results were never intended to come overnight, but over the past seven years America has reaped vast economic, environmental, and national security benefits due to the increased use of home-grown, renewable fuels,” noted Bob Dinneen, president and CEO of the Renewable Fuels Association. “Today’s report overwhelmingly shows that the RFS has been an unmitigated success.”
Dinneen continued, “The only hiccup in the unprecedented success of the program is a consequence of EPA’s recent failure to implement the program as designed by Congress. As we blow out the candle on the RFS’ seventh birthday cake, we do so with a wish that EPA would quickly restore the RFS to a trajectory that will enable continued investment in advanced biofuels, drive the market beyond the blend wall, and provide consumers with meaningful options and savings at the pump.”
Among its findings, the report notes that “Renewable fuel production and consumption have grown dramatically. Dependence on petroleum—particularly imports—is down significantly. Greenhouse gas emissions from the transportation sector have fallen. The value of agricultural products is up appreciably. And communities across the country have benefited from the job creation, increased tax revenue, and heightened household income that stem from the construction and operation of a biorefinery.”
According to the analysis, since 2007:
The number of operational ethanol plants in the United States has nearly doubled, while annual ethanol production has more than doubled.
Advanced biofuel production has more than tripled.
Corn acres planted have fallen 3 percent, while corn yield per acre has jumped 15 percent. Meanwhile, corn prices have fallen 17 percent.
The size of the hypoxic “dead zone” in the Gulf of Mexico has shrunken by one-third, and deforestation in the Amazon has fallen by more than half.
Transportation-related GHG emissions are down 10 percent.
The share of U.S. crude oil demand satisfied by imports has fallen from 66 percent to 47 percent.
Oil imports from OPEC are down more than 40 percent.
The World Food Price Index is just 3 percent higher.
Spending on food has increased $469 per household, 7.6 percent higher than in 2007 and in line with typical inflation rates. Meanwhile, household spending on gasoline and motor oil is up nearly 10 percent.
The full report can be found here.
Read the original story here : The RFS Celebrates Seven Years Of Success
Dec 15, 2014
By Joanna Schroeder
The Minnesota biofuels industry has been evolving since its inception, which was discussed in Part 1 of this feature article. In this part, we look at how the industry is taking shape in Minnesota and what some of the most promising new technologies are on the horizon.
An interesting element of the biofuel industry is that while it is evolving on a national level, it has also evolved locally. Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association, explains that states and regions have differing available resources as well as differing types and tons of biomass available.
“Biofuel producers in any particular region adapt to the availability of various resources including, for example, access to energy, water, transportation infrastructure and so on,” says Rudnicki. “The availability of these important resources helped to accelerate the evolution of the biofuel industry in Minnesota and is what has made, and will continue to make, Minnesota one of the leading states when it comes to the production of biofuels.”
It’s interesting to review what could be deemed the top improvements that the ethanol industry has adopted over the past few years. Randall Doyal, CEO of Al-Corn Clean Fuel, says that since the plant went online they have adapted their process and technology to reduce down time, increase throughput and increase yield.
Al-Corn was designed as a 10 million gallon per year plant, and today they are operating at 50 million gallons per year. “We have increased our fuel ethanol yield from two and a half gallons per bushel to over two point nine gallons per bushel,” says Doyal. “We have added CO2 recovery, distillers corn oil recovery, and focused on our distillers grains quality to add value to our ethanol production.”
So, what are the new best technologies coming down the pipeline? Rudnicki says the future is very exciting because it will involve many facets including the interface between biological processes and technology. He believes some of the processes to watch include technologies that will enable corn oil to be more efficiency extracted as well as the use of existing biomass.
From an ethanol plant perspective the next three to five years could bring big changes.
Doyal says the industry is waiting to see what will happen with the Renewable Fuels Standard (RFS). The industry has reached the point where ethanol makes up 10 percent of the U.S. gasoline supply and the country needs to see growth in the use of biofuels. Doyal believes the industry will primarily grow through “inside the fence” expansion at existing facilities (for example adding cellulosic ethanol technology or biodiesel plant), and today several greenfield projects are beginning to take shape.
In terms of how consumer access will change, Rudnicki says the ethanol industry will make even more progress including enabling more access to consumers for mid-level and higher blends of ethanol and fueling options.
“It’s fantastic to have this production of ethanol and other biofuels, but those clean, renewable fuels must have access to the market. That’s what will finally help to displace finite fossil fuels and help all of us reduce carbon emissions,” says Rudnicki.
When it comes down to brass tax, the biofuels industry must be profitable. Doyal says ethanol plant operators need to focus on efficiency improvements to reduce their cost of operation and consumption of energy inputs. “They need to focus on making fermentation and starch utilization as optimum as possible, to get all the carbohydrate value out of the kernel,” he adds. “They need to focus on producing co-products with high quality and consistency. And they need to remain vigilant in their search for new technologies that will bring improvements, or new and more valuable products to offer to the market.”
The Minnesota Bio-Fuels Association is also working with biofuels industry to ensure the industry remains competitive. Rudnicki says one of their key goals is to help lower artificial barriers biofuels face in entering new markets. He also notes that the Association is working with a wide range of stakeholders throughout the supply chain to give fuel retailers as well as consumers fuel choice at the pump.
In addition, Rudnicki highlights the important role state legislation has played in the industry’s growth. Minnesota has created public policies that not only support the production of biofuels but also call for greater use of biofuels. In closing, Rudnicki says, “Minnesota law aims to displace at least 30 percent of petroleum by 2025 with biofuels. That’s good for the economy, saves consumers money, creates greater energy independence and decreases greenhouse gas emissions.”
Read the original story here : The Evolution Of Minnesota's Biofuels Industry - Part 2
Dec 13, 2014
By David Shaffer
After a decade of research, a little-known company based in Minnesota says it has developed a cheaper, more energy-efficient process to make biodiesel motor fuel from waste oils generated by commercial kitchens and the rendering industry.
Superior Process Technologies is a small research-and-development unit of privately held Baker Commodities, a large, family-owned renderer and waste grease recycler based in Vernon, Calif. Staffed by a handful of chemists and engineers, Superior Process has worked quietly in a small office and laboratory in northeast Minneapolis on a better way to refine grease, tallow and other waste oils into biodiesel.
Superior Process engineers Kirk Cobb and Joe Valdespino, whose innovations draw on decades of experience in the paper and oleochemical industries, now are working toward a big step: constructing a commercial-scale biodiesel refinery.
Baker Commodities plans next year to start building a 20-million-gallon-per-year biodiesel plant in Vernon, Calif., to recycle waste grease into fuel, said Doug Smith, general manager of Superior Process and assistant vice president for R&D at the parent company.
“Our process is superior to the traditional method,” said Valdespino in an interview at the company’s lab and office on NE. Broadway. “It saves energy. It increases yield. … It enables you to use cheaper feedstocks.”
The cheap feedstocks include used deep-fryer oils, rendered animal fats and the contents of grease traps in sewer lines. These waste products, often known as yellow or brown grease, are less expensive than soybean oil, the traditional raw material for biodiesel.
The challenge of converting waste into something useful appealed to Cobb and Valdespino. They met more than two decades ago while working as engineers for Union Camp Corp., a Savannah, Ga., paper company acquired in 1998 by a larger rival. The pine used in pulpmaking generated liquid rosin or tall oil, and the two engineers worked on ways to turn it into profitable products.
A different process
Minnesota, the nation’s No. 3 soybean producer, is home to other pioneers in the biodiesel industry, and has two large and one small biodiesel refineries owned by other companies. Under Minnesota law, the fuel is blended with petroleum-based diesel at rates of 5 or 10 percent.
Superior Process’ work on the biofuel has happened under the radar until now. Cobb first turned his attention to biodiesel in the early 2000s, joining Superior Process in 2004, moving to Minnesota a year later and hiring Valdespino in 2007.
Many of the nation’s 94 biodiesel plants don’t try to refine waste oils. Those that do typically rely on a pretreatment process — known as acid esterification — that uses sulfuric acid to remove free fatty acids that otherwise would interfere with the making of biodiesel.
“The traditional acid esterification process is really messy,” said Valdespino. “It is limited to very small free fatty acid impurities. It is very limited.”
The traditional process also causes water to contaminate another compound, methanol, used in the making of biodiesel. Cobb said the water then must be removed before processing oils into biodiesel, a step that takes more energy.
For years, Cobb and Valdespino have been working on a different process to address this challenge. It relies on heat and glycerin to modify free fatty acids into feedstock that can be refined into biodiesel. The process, called glycerolysis, is not new, and a version of it is employed by at least three U.S. biodiesel plants.
The Minnesota engineers say their process will refine the most challenging of waste oils. They added some proprietary features to the multistep biodiesel refining process, and have done all the engineering work to build a commercial-sized plant.
Challenging environment
The biodiesel industry has faced on-again, off-again federal tax incentives for the low-carbon biofuel. A $1-per-gallon tax credit for biodiesel expired last year. That has happened before, only to have the credit retroactively revived.
For now, at least, new plants like the one Superior Process wants to build won’t get the tax credit that helped earlier biodiesel start-ups.
Skepticism of the technology also can be a problem. In 2012, Cobb read an article in an industry journal declaring the traditional pretreatment process for waste oil more energy-efficient than the glycerolysis method championed by Superior Process.
Cobb pushed back with his own data, reporting that the opposite is true. Cobb said skeptics flagged on the fact that glycerolysis relies on higher temperatures, while ignoring how much energy is wasted to strip away water in the acid-based method.
“People misconstrue higher temperature with higher energy use,” Cobb said. “That is not the case.”
Cobb and Valdespino are excited that their ideas are headed toward commercial deployment.
The strategy, said Smith, is to get one plant up and running and showcase the technology. Then the company could go on to build other plants, or possibly license the technology to other companies, he said.
“It is going to be much lower cost; less than $2 per gallon,” Smith added.
Read the original story here : Biofuel Innovators Look For Breakout
Dec 12, 2014
By Joanna Schroder
The Minnesota ethanol industry is evolving even in the face of growth challenges including continued uncertainty around the Renewable Fuel Standard (RFS). Since 2007 the industry has improved by leaps and bounds in terms of technological advancements, energy efficiency and sustainability.
“Minnesota ethanol producers are continually evolving with respect to the use of technology and processes to decrease the inputs of energy and water while increasing their output of ethanol and co-products such as DDGs and corn oil,” explains Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association.
According to a 2011 report from the Argonne National Laboratory, ethanol producers have cut water use in half within a 10-year period. In fact, Rudnicki notes that some producers are using less than two gallons of water to produce 1 gallon of ethanol. When comparing water use with the production of oil, depending on where the oil is extracted, oil production can require more than seven times that much water to produce one gallon of gas. Other ways ethanol producers are infusing sustainability within water use is by using storm water and treated municipal wastewater.
Specifically, the Al-Corn Clean Fuel ethanol plant has completely eliminated any process water discharge. Randall Doyal CEO of the Claremont, Minnesota-based plant says, “This cut our water consumption down to just over two gallons per gallon of ethanol. The water that is used is for cooling and is evaporated, so it returns to the atmosphere to recycle back as rain. We continually recover water in the process to reuse again and again.”
In other terms of sustainability, biofuels also offer a significant reduction in greenhouse gas emissions (GHG). When using Argonne’s Wells to Wheels methodology, total lifecycle GHG reductions for corn-based ethanol equates to a 57 percent reduction in GHS emissions when compared to petroleum.
“Biofuel producers are decreasing their inputs, increasing the outputs and providing consumers with a lower carbon renewable fuel that helps to reduce GHG emissions,” says Rudnicki.
Energy efficiency is also an area that has seen great improvements over the past few years. Doyal highlights the ingenuity of the ethanol industry when developing solutions to improve aspects of production.
“The ethanol industry has always been made up of people who constantly challenge the norm and try to find better ways to do things,” Doyal explains. This is very evident in how much we have seen energy consumption drop over the years. Our plant in Claremont was constructed in 1996 and over our history we have reduced both our natural gas and electricity consumption by over a third. Our results are fairly consistent with the industry as a whole. We have added thermal oxidation to reduce emissions from our feed drying process, and have integrated that into our operations to gain greater efficiency.”
Doyal says his plant, like many others have added distillers’ corn oil recovery, adding a new and valuable product line to their list of co-products. His team continually reviews new technologies to determine if they can further enhance efficiencies or add a new co-product.
His plant makes use of the advances in enzyme technologies and his team is always trying to push their yield of ethanol per bushel. “All of these adaptations provide our industry with greater sustainability,” stresses Doyal. “Couple this with the vast improvements in corn farming technologies and you can see how great the gains actually are. Farmers in our area are accustomed to achieving 200 bushels per acre or more, with lower inputs and chemicals while using more sustainable farming techniques. The impact of farm equipment technology in reducing fuel consumption while also reducing seed, chemical and fertilizer inputs pushes the efficiency even higher.”
On Monday we’ll hear from Doyal and Rudnicki on the what the next five years might bring for renewable fuels in Minnesota.
Read the original story here : The Evolution Of Minnesota's Ethanol Industry