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In the News

Ethanol Producer Maganzie

September 15, 2015

By Bob Dinneen

It’s that time of year again, when leaves make their seasonal color change and pumpkins are carefully placed on every porch. Another year is on its way out. Time, it seems, is never on our side; it’s always zipping by us faster than we expect. The ethanol industry had quite the significant “has it been this long?” moment in August when we celebrated the 10th anniversary of what is arguably our nation’s most successful energy policy: the renewable fuel standard (RFS). Over the past 10 years, the RFS has made an indelible impact on the nation’s economy, environment, and energy security.

The RFS is powering America’s rural economy in ways we could not have imagined before the Energy Policy Act was signed into law by President George W. Bush in 2005. Since then, ethanol industry jobs have more than doubled, driving a threefold increase in annual ethanol production from plants nationwide to its historic height of 14.3 billion gallons in 2014. Farmers are now producing 25 bushels of corn per acre thanks to higher yields—all without expanding onto additional lands—and the doubling of corn prices has saved families from the brink of bankruptcy.

The RFS is, of course, a multifaceted program that was created to tackle critical energy issues gripping the nation at the time of its passage. In 2005, the United States imported three-fifths of its petroleum needs. Today, that number rests at just over a quarter. Notably, ethanol’s rise to claim 10 percent of the gasoline pool has virtually eliminated all gasoline import dependence. Last year, the Energy Information Administration found that ethanol displaced the gasoline equivalent of 512 million barrels of crude oil, which is more than all the oil America imports every year from Saudi Arabia.

But what is a comprehensive energy plan without a consideration of its environmental impact? Ethanol continues to be unquestionably cleaner than fossil fuels. Conventional ethanol is reducing greenhouse gas emissions by 34 percent compared to gasoline. That means less carbon monoxide, benzene and other toxic hydrocarbons are polluting our atmosphere. The lowered emissions each year equate to removing more than 8 million cars from the road. If cleaner tailpipe emissions aren’t already a draw, consumers can look forward to cheaper gas prices, thanks to ethanol. On average, ethanol saves drivers about a dollar per gallon at the pump.

The fact is the RFS is doing what Congress intended it to do 10 years ago. The American public recognizes that fact. The U.S. EPA, however, does not seem to want to hear about the public’s satisfaction with the program. Its proposal to drastically slash volumetric blending requirements for refiners proves that the agency instead prefers to listen to the same misinformation that the oil companies have been propagating for years. As the EPA witnessed at its June hearing Kansas City, support for the RFS at the ground level is ubiquitous and strong. EPA’s proposal will only reverse the program’s success in the name of Big Oil profits.

The RFS is just a decade old and its results have been wide-ranging and long-lasting. Ethanol production, corn yields, and the number of rural American jobs are up, while oil imports, greenhouse gas emissions and gas prices are down. At a time when the White House is making a concerted effort to move America beyond the 20th century kilns of the coal factories, biofuels are now more important than ever. The stability the RFS has brought to the ethanol industry has not only economically rejuvenated the nation, but it has driven the innovation necessary to propel advanced biofuels into the forefront. What was once a niche gasoline supplement has found its footing and is being recognized for what it is: the fuel of the future.

Read the original story "RFS: Doing What Congress Intended"

Press Release by Algenol and Protec Fuel

September 14, 2015

Offering ethanol made from algae for the first time commercially. Algenol and Protec Fuel have agreed to market and distribute ethanol from Algenol’s Fort Myers, Fla., commercial demonstration module. The two will also offer Algenol’s future 18 million gallons per year from its commercial plant, which is planned for development in Central Florida in 2016 and 2017. Protec Fuel will distribute and market the fuel for E15 and E85 applications for both retail stations and general public consumption, as well as fleet applications.

“This alliance is a logical step for Algenol as our commercial fuels are coming on-line,” says Algenol Founder and CEO Paul Woods. “We are excited about partnering with a successful, innovative renewable fuels distributor, who is knowledgeable in the regional and Florida ethanol market and has the expertise and relationships to grow the partnership nationally.”

“We know that advanced ethanol is a key element of the future of fuels, and we are excited to partner with Algenol, the leader in the development of algae-based fuels,” said Todd Garner, CEO, Protec Fuel. “The key components and priority of ethanol’s use are sustainability, cleaner air, and to provide the public with lower-cost fuel,” he said. “To be able to offer a fuel that can accomplish the three key components only bolsters this advanced biofuel’s future.”

This partnership will enable Algenol to leverage Protec’s established network of retail clients for the distribution of Algenol’s E85, E15 and other advanced biofuels, while also enhancing Protec’s proven ability to bring to market unique renewable fuels. The agreement encompasses E85 and E15 marketing and supply to Protec distribution network and to fuel terminals and other third parties, as warranted by market conditions. While the partnership will initially focus on Florida, the agreement provides for expansion into a national partnership scope as Algenol develops projects in other markets. Algenol’s Florida-based production facilities will provide both parties and their customers with a substantial margin advantage versus fuels shipped from out-of-state.

This agreement follows a series of successful commercialization milestones achieved by Algenol, which include its pathway approval by the US Environmental Protection Agency (EPA) in December 2014, its organism approval by both the state of Florida and by the EPA in the same year, and the June 2015 completion of its 2-acre commercial demonstration module funded in part by a $25 million DOE Recovery Act grant. Algenol is producing ethanol meeting the D4806 ASTM specifications on a daily basis, and it can be sold commercially as E85.

Algenol has developed a patented technology using algae to produce the four most widely used fuels; ethanol, gasoline, het and diesel fuel, all for about $1.30 a gallon. The company captures, recycles and utilizes CO2 that is used as a feedstock for the algae, an approach specifically identified as a qualifying technology for reducing carbon emissions in the recently established Clean Power Plan. Its pathway reduces Greenhouse gas emissions by 69% per gallon compared to tradition gasoline according the official EPA pathway approval. A single 2,000 acre commercial Algenol module is equivalent to planting 40-million trees or removing 36-thousand cars from the road. Ethanol, used in gas pumps across the country, is typically made from the fermentation of sugars produced by plants such as corn and sugar cane. But through the innovation of using algae to convert Co2 emissions into fuels, Algenol has successfully developed a fossil fuel replacement with yields 20 times greater than that of corn.

 

Read the original press release: Algenol to Distribute Ethanol Commercially

 

 

 

 

Minneapolis Star Tribune

September 13, 2015

By David Schaffer

The gas station at Penn Avenue and 67th Street in Richfield has carried various names over the past 50 years — Conoco, Mobil, U.S. Oil and others — as owners changed or marketing contracts lapsed.

Now, after two decades of local ownership by businessman Mark L. Olson, the station has been reborn as a local brand: Minnoco.

Across the Twin Cities region, 19 independent gas station owners like Olson have become Minnoco retailers in the past two years, freeing themselves from big oil companies while cutting costs and launching group marketing efforts. More Minnoco stations are coming.

“This is bringing together the independent operator that can’t put ads in the newspaper or on radio and TV,” said Olson, who converted his station to Minnoco in early August. “It brings everyone together to market the brand just like an SA [SuperAmerica] or a Holiday. That is what we are trying to do.”

Under the business model, station owners invest in their own station refurbishments and engage in joint marketing. Minnoco offers coupons for discounted gas and other products via newspaper inserts, social media, e-mail and minnoco.com. It plans an instant rewards program and a fundraising effort for a breast cancer charity this fall.

Minnoco was created by the Minnesota Service Station & Convenience Store Association, an industry trade group. Lance Klatt, executive director, said the goal is to get at least 50 stations under the Minnoco brand.

“We can market our brand how we want,” Klatt said. “It is a business model that makes sense. There are a lot of independent retailers that are hungry for a new image, the opportunity to control their own brand and to bring new fuel to the marketplace.”

The stations also gain from the buy-local movement. “You look at the logo and you know it is a Minnesota company,” said Michael Porter, an adjunct faculty member in marketing at the University of St. Thomas Minneapolis campus.

And in a nod to renewable fuels, Minnoco’s mostly green logo features a plant leaf.

Among the first to offer E15

Renewable fuel is an important piece of the Minnoco story, and it underscores the changing landscape of gasoline retailing.

All but two of the Minnoco stations sell “Unleaded Plus,” or E15, a blend of 15 percent ethanol and 85 percent gasoline that can be used in 2001 and newer cars and trucks. The price typically is 10 cents less than regular fuel, which is 10 percent ethanol.

The ethanol industry has been trying to get more gas stations to sell E15, but it’s a challenge because oil companies have little incentive to upgrade pumps for renewable fuel blends that cut petroleum’s market share. So ethanol and corn-producer trade groups now offer grants to help stations with pump upgrades to sell a range of ethanol blends.

“It’s cleaner and it’s cheaper and the performance and fuel mileage is the same as regular gasoline if not better,” said Joel Hennen, who owns the Shakopee Minnoco station and is chairman of the Minnoco board of directors.

Big oil companies like BP, ConocoPhillips and ExxonMobil once owned gas stations, but have divested them over the past decade. Their names remain on about half of the nation’s gas retailers because they fund station improvements under long-term marketing deals.

Minnoco stations aren’t the only ones getting help from the renewable fuel industry to introduce E15, and higher ethanol blends like E30 and E85, which are for flexible-fuel vehicles. Mike O’Brien, vice president for market development at Growth Energy, an ethanol industry trade group, said other U.S. regional retailers adding such blends are Sheetz, Kum & Go, and Murphy USA.

“In order to get E15 into the marketplace, you have to go around the established markets,” said O’Brien, who is based in Minnesota.

Soon E15 will get another push from the U.S. Department of Agriculture, which is handing out $100 million in grants to upgrade 4,880 of pumps across the country. Of 21 states tentatively approved for grants last week, Minnesota is slated to get the third-largest share, enough for an estimated 620 pump upgrades.

Benefits, hidden and not

Station owners cite other benefits of severing alliances with big oil companies.

One plus is that stations are free to purchase gasoline from wholesalers at market prices generally lower than those offered by big oil brands, they said. This helps the stations compete against other convenience store chains, which already benefit from wholesale purchasing.

At major-brand stations, the independent owner is “essentially obligated to buy their gas and you can be roped in for seven to 15 years,” said Rick Bohnen, who converted one of his two stations on Penn Avenue in Minneapolis to a Minnoco. His other station is a BP.

Bohnen said Minnoco stations also get a break on credit card swipe fees, which can be a major expense at stations, typically costing 2.5 percent of every sale.

Porter, of St. Thomas, said that rebranding under the Minnoco logo can help station owners avoid the fallout from disasters like the 2010 BP Deepwater Horizon explosion and oil spill in the Gulf of Mexico or the 1989 Exxon Valdez tanker grounding and oil spill off the coast of Alaska.

After such disasters, some consumers turn away from that oil brand, choosing to fill up elsewhere.

“Minnoco is closer to a hometown brand, and it is less likely to take the backfire from a Deepwater Horizon spill,” Porter said. “You are insulating yourself from that kind of backlash.”

Read the original story: Growing Minnoco Gas Station Brand is Fueled by Independent Operators

Global Renewable Fuels Alliance

Sept 11, 2015

The UN FAO has released data showing that global food prices have experience the steepest monthly drop since 2008, casting doubt upon concerns about the impact of ethanol production in food price increases. The recent decline in food prices has coincided with a period of record ethanol production expansion, reaching a high of 94 billion litres in 2014 from 83.5 billion litres in 2012, a 10% increase over this period. This contrast clearly demonstrates that increased ethanol production has not driven up food prices.

The UN FAO Food Price Index averaged 155.7 points in August, down 5.2% from July, representing the steepest monthly drop since December 2008 with virtually all major food commodities registering marked dips. This drop coincides with a fall in crude oil prices in July of 19%, closing at $48.25 per barrel on July 31.

The Global Renewable Fuels Alliance (GRFA) has for several years argued that the price of oil and energy inputs are the single most influential drivers of food and commodity prices. A number of international institutions including the World Bank, International Energy Agency (IEA) and United Nations Food and Agriculture Organization (UN FAO) have also recognised the strong relationship between oil prices and food prices.

A 2013 World Bank publication, Long-Term Drivers of Food Prices, concluded that almost two thirds of food price increases are caused by rising oil prices. The report states that between 1997-2012 the price of crude oil caused maize and wheat prices to increase by 52 percent and 64 percent, respectively. The report also found that biofuels had a negligible impact on food prices during this period.

The undeniable relationship between oil price and food price is outlined in this chart. The recent collapse of global crude oil prices has been followed by the collapse in the global food price index showing how reliant food prices are on the price of oil.

In a recent publication, the UN FAO conclude that increased biofuels demand has helped the agriculture sector by increasing agricultural productivity and output which has “ensured that the global supply of crops available for non-biofuel uses has continued to grow over the long term.”

In a speech this past January at the Global Forum for Food and agriculture the UN FAO Director-General Jose Graziano da Silva recognized biofuels as a key part of the global agriculture complex with social, agricultural and environmental benefits and outlined the potential for agriculture to accommodate mutually supportive food and biofuel production.

Read the original story here : UN Data Shows That Ethanol Is Not Causing Food Price Rises

 

Bobby Likis Car Clinic

Sept 4, 2015

By Bobby Likis

Recently, Lauren Fix appeared on the Jacki Daily Show and took aim at Ethanol.  Really? 

Perception / Myth / Ms. Fix: 

Corn was not designed to run through engines; ethanol-blended fuels must have fuel additives to ensure burn (mentioning three brands specifically and stating that car owners need to add one of these additives to every tankful of E10); ethanol is so damaging that it is not used in race cars. 

FACTS:

These overwhelming no-merit statements are not based on fact.  Henry Ford's first car "1896 Quadricycle" ran on E100 (100% ethanol).  And Mr. Ford's 1908 Model-T was America's first Flex-Fuel car.  E15 is the most tested fuel ever...to the tune of the equivalent of 12 round trips to the moon (6 million miles). No discernable difference was found in engine wear between E15 and other test fuels in the tested model years (2001 and later). NASCAR powers its cars with E15 fuel (85% gasoline with 15% ethanol). Indy racecars run E98.  Why 98% rather than 100%?  Glad you asked.  By adding 2% gasoline, pit crews would be able to see smoke in case there’s a fire.  Ethanol burns so cleanly that 100% would be all but invisible to spot if a fire did break out, which can happen when cars going 225 mph run into each other or the wall. Speaking of clean burning, ethanol replaced MTBE (which replaced lead in gasoline) as an oxygenate.  By adding 10% ethanol to gasoline, many cities are able to reach clean air requirements that otherwise would not be possible. Ford’s EcoBoost and GM’s Ecotec engines thirst for high octane, and ethanol delivers. Thousands of car owners across America who drive high-performance (but non-flex-fuel) vehicles on the street want an E85 option. One example is my General Manager who owns a 2015 Subaru WRX STI diligently searched for E85. Why?  E85 adds another 70 HP and 100 lbft torque to the existing 346 HP, all-wheel vehicle.  Ethanol - with its 113 octane rating - is an enabler of power & performance.

Perception / Myth / Ms. Fix: 

Ethanol destroys Air Mass Sensors and O2 Sensors. 

FACTS:

This statement is only not true, it’s impossible.  Mass Air Flow Sensors & Oxygen (O2) Sensors were developed and designed to measure the total amount AIR flowing into an engine and the amount of OXYGEN leaving an engine through the exhaust, respectively. AIR and OXYGEN...gases, not fuel/liquid. Neither are part of the liquid fuel system. The Mass Air Sensor is mounted outside the engine and has absolutely no physical connection with its liquid fuel system.  Nothing other than fresh-filtered air touches the Mass Air Flow Sensor. Simplified, this sensor’s job is analogous to that of ticket takers at the theater. They count the number of heads entering the theater while others (O2 sensors) count the per-ticket cash.  Heads-in / cash-out should balance. By measuring how much air goes in and at what temperature, the vehicle’s on-board computer can compare how much air leaves the engine and adjust fuel flow volume. It’s that simple. And to underscore the ridiculousness of the “damage” myth is that an ethanol molecule itself contains 35% oxygen and it evaporates at 174° F, leaving zero trace of emissions.

Perception / Myth / Ms. Fix:

Ethanol causes phase separation (free-standing water in fuel)

FACTS:

Ms. Fix states that ethanol falls to the bottom of the fuel tank. Incorrect. When condensation occurs with temperature changes, WATER can (unlikely, but theoretically can) fall to the bottom of the fuel tank in an event called phase separation (water separating from fuel). Know which fuel best solves phase separation?  Ethanol.  All-hyrdrocarbon gasoline with NO ethanol can suspend about .15 teaspoon of water before it separates.  E10 can suspend about 4 teaspoons – that’s over 26 times more – reducing the chance for water-related corrosion and engine misses.  Yes, ethanol is the solution to the problem.  Ironically, Ms. Fix refers to several companies offering fuel additives that keep condensation from freezing in very cold climates.  Guess what the fuel additives are?  Like ethanol, they’re alcohol-based compounds.  Yes, really!  Now that we’ve gotten to the details, let’s go back to the 10,000-ft view.  Phase separation isn’t even an issue with today’s cars.  At 70°F and 70% relative humidity, it takes almost 3 months for pure gasoline to phase separate. The danger of ethanol - with 26 times more water-suspending capability - phase separating in any practical environment is ridiculous. The math indicates that more than 5.8 years storage with “open” fuel caps would be required to cause phase separation with ethanol (compared to 2.7 months with pure gasoline).  In any case, today’s secure gas caps (check-engine light warns if leaking) seal fuel vapors from escaping the tank and allow only the amount of air into the tank that is required to fill the void as the engine burns fuel from the tank. Even Mercury Marine states that “after the transition period from E0, E10 may actually be a superior marine fuel as it tends to keep low levels of water moving through the fuel system, keeping the system ‘dry.’”

Perception / Myth / Ms. Fix: 

Ethanol destroys engines

FACTS:

Forty-four years as an automotive service shop owner, mechanic & engine builder with 200,000 vehicles in my ASE-Certified technicians’ bays...and not one engine was ruined because of ethanol.  Verifiable fact.  I suggest Ms. Fix read her history on fuels, specifically Ethyl (GM Kettering), Sir Harry Ricardo’s ethanol racing fuels...and John D. Rockefeller’s avid participation to rid the country of ethanol so his Standard Oil could become the fuel supplier for America. Yes, Prohibition was more than simply taking whiskey off the streets...it was also about taking alcohol (ethanol) off the streets. I could say it's a shame Ms. Fix is so uninformed, but shame doesn't quite fit her obvious lack of basic knowledge regarding ethanol...or gasoline for that matter.  What was especially disturbing to me during this interview was that both host and guest made statements about "single women getting hurt" and breaking down in not-so-friendly neighborhoods.  Cars break down…machines break down, but not because ethanol is in the tank.  As for women, in my award winning automotive service shop (proudly enjoying 44 years success), almost 55% of our customers are women...and not one takes the above position.  Rather, our women customers ask questions and are always interested in why their vehicle failed or what they might do today to help ensure their cars stay healthy/roadworthy tomorrow.  

So, the world is not flat. And egregiously incorrect perceptions of ethanol need to be fixed. We as a country need to be power-moving toward economic independence, superior engine design, cleaner air and fuel economy.  A future which Facts show that Ethanol enables.

Read the original story here : Bobby Likis Car Clinic : Ethanol Update

Ethanol Producer Magazine

September 1, 2015

By Susanne Retka Schill

Ethanol supporters are responding to a new round of misinformation about ethanol.

Before Labor Day, the Boat Owners Association of the United States announced the results of an informal survey that found a “vast majority” want ethanol-free gas, but only about half of respondents say it is available at marinas and gas stations. The news release went on to say “to keep up with the RFS mandate, in 2010 the EPA permitted E15,” and that, though it is prohibited for use in marine engines and other small engines and vehicles made before 2001, “it can now be found in 24 states.” The group encouraged boaters and small engine owners to ask Congress “to amend the RFS to ensure future gasoline supply in the U.S. works for all engines.”

The Renewable Fuels Association released a statement assuring boat owners that E10 is safe for boat engines. “The poll results are, unfortunately, a clear indication that the myths surrounding boating and ethanol continue to exist,” said Bob Dinneen, president and CEO. “The National Marine Manufacturers Association has engaged in a relentless misinformation campaign regarding E15 and, in doing so, has confused the issue. It is simply not true that ethanol and boat engines do not mix. E10 is safe for boat engines. In fact, every boat manufacturer warrants the use of ethanol-blended fuel with up to 10 percent ethanol. So boaters should not have any worries about filling their engines with E10 over the Labor Day holiday.”

The American Motorcycle Association sponsored its own poll “that finds likely 2016 voters have widespread and serious concern about ethanol’s unintended consequences—including damage to engines, land conversion and food prices.”

The findings cited in the association’s news release included:

“Poll results show that a majority of voters nationwide have serious concerns about the effects of the RFS: - 78 percent of those polled had serious concerns that higher blends of ethanol such as E-15 can cause severe damage in cars, motorcycles, boats, lawn equipment and other small engines. - 73 percent of polled voters had serious concerns about an EPA analysis showing that emissions that contribute to climate change are 28 percent higher from corn ethanol than pure gasoline. - 77 percent of those polled had serious concerns about corn ethanol production consuming 34 times more water than pure gasoline. - 80 percent of polled voters had serious concerns about how diverting corn to produce ethanol could increase food prices.”

Responding to similar distortions, Mark Rauch at The Auto Channel wrote a comprehensive critique to “expert” advice being given by automotive media personality Lauren Fix on a recent interview on the radio Jacki Daily Show.  The lengthy blog, “Lauren Fix Takes Ethanol Opposition To New Level Of Stupidity,”   responds to specific errors in detail regarding such things as ethanol not being used in race cars, corrosion issues and phase separation, among other things.

Read the original story "Ethanol Supporters Respond to Spate of Misinformation"

 

Morris Sun Tribune

August 29, 2015

By Ellie Musselman

MORRIS, Minn - The Minnesota Department of Employment and Economic Development (DEED) has awarded Morris-based ethanol plant DENCO II a $750,000 grant to purchase three pieces of equipment intended to increase energy efficiency.

Mick Miller, DENCO II General Manager, told the Morris City Council this past week that the company will add a fifth fermentation tank, an additional hammer mill, and an addition to the plant’s cooling tower. The total project will cost between $1.5-1.6 million. The grant will go through the city, Miller told councilmembers, “the matching portion will come privately from Denco II. There will be no expenses on the city.”

This is the second grant awarded by DEED to the company through the plant’s public-private partnership with the city. The city will own the equipment for twelve years before ownership passes to DENCO II. The project qualifies for DEED funding because its goal is to maintain or increase employment in Morris. The plant currently has 35 full time employees.

A resolution to call for bids on the project was unanimously approved by the city council. Mayor Sheldon Giese said, “It’s always a win-win when we can work with local businesses.”

Read the original story: "Denco II Received DEED Grant"

Lake Expo.com

Aug 30, 2015

By Nathan Bechtold

LAKE OF THE OZARKS, Mo. — With acclaimed drivers Myrick Coil and John Cosker in the cockpit, Don Onken’s 50-foot Mystic American Ethanol is this year’s Shootout champion. Onken’s yellow and black catamaran hit 208 mph on the first day of the two-day race, running the traditional one-mile stretch past tens of thousands of crowds who lined the race course in a miles-long flotilla.

The Mystic sports four engines that burn pure ethanol and put out more than 1,700 HP apiece. That puts American Ethanol at around 7,000 HP.

Shootout fans have seen this boat before: it was formerly dubbed Recycler, a tribute to Onken's highly successful oil filter recycling business.

Onken is a boat racer at heart. He drove the Mr. Goodwrench boat for several years in the 1990s, and then stepped out of the cockpit and into the role of entrepreneur. Having built a successful oil filter recycling business in Illinois, Onken brought gear-head Keith Eickert’s Lightning Performance line into his family of companies. And that partnership has propelled Lightning Performance Group to the top of the powerboating world.

Recycler raced at the Shootout in 2013 and 2014, but topped out well below 200 mph.

This year, the rebooted American Recycler came ready to race, and now Coil, Cosker, Onken and the bright yellow Mystic have secured their place in Shootout history.

Read the original story here : 'American Ethanol' Is Shootout Top Gun With 208 Mph